Global Business Roundup: Oil Rally, SoftBank’s $2B Intel Lifeline & China’s Big Debt Deal (Aug 18–19, 2025)

Finance & Markets

• U.S. Credit Rating Steady: S&P Global affirmed its ‘AA+’ sovereign credit rating for the United States, citing revenue from President Donald Trump’s import tariffs as offsetting the deficit impact of recent tax cuts and spending reuters.com reuters.com. The agency noted that “meaningful tariff revenue has the potential to offset the deficit-raising aspects of the recent budget legislation” even as America’s fiscal profile remains a weakness reuters.com. S&P maintained a stable outlook on the U.S. rating, reflecting confidence that the country will manage its debt under current policies.
• Italian Banking M&A: In Europe, Mediobanca secured approval from the European Central Bank to acquire rival Banca Generali, clearing a path to create Italy’s second-largest wealth manager reuters.com. Mediobanca’s CEO Alberto Nagel pursued the deal as a defensive move to “thwart” a takeover bid by state-backed Monte dei Paschi (MPS) reuters.com reuters.com. Shareholder voting is set for Aug. 21, after an earlier vote was delayed due to insufficient support reuters.com. The merger comes amid a consolidation wave in Italian finance, with MPS itself the target of privatization and new investors.
• Japanese Policy Pressure: In Japan, veteran lawmaker Taro Kono publicly urged the central bank to start gradually raising interest rates to strengthen the weak yen and tame inflation’s pain on households reuters.com. “Japan must raise interest rates and get its fiscal house in order to strengthen a weak yen that has pushed up inflation,” Kono told Reuters, arguing it’s better to start tightening early reuters.com. His comments underscore growing pressure for the Bank of Japan to exit its decade-long ultra-easy policy as prices climb.

Technology & Telecom

• SoftBank’s $2B Intel Lifeline: In a major tech investment, Japan’s SoftBank is injecting $2 billion into Intel, becoming roughly a 2% shareholder in the iconic U.S. chipmaker reuters.com reuters.com. The equity infusion, announced Monday, is a “vote of confidence” in Intel’s turnaround plan as it strives to regain ground in the semiconductor industry reuters.com. “This strategic investment reflects our belief that advanced semiconductor manufacturing… will further expand in the United States, with Intel playing a critical role,” SoftBank CEO Masayoshi Son said in a statement reuters.com. The deal makes SoftBank one of Intel’s top six shareholders and sent Intel stock up 5.6% in after-hours trading reuters.com. It comes as Intel, which lost nearly $19 billion last year, seeks partners to help fund its pivot to high-end chip fabrication after falling behind rivals reuters.com reuters.com. SoftBank has been on an AI-focused spending spree in 2025 – committing $30 billion to OpenAI and co-leading a $500 billion U.S. data-center project – signaling its deepening bet on foundational tech infrastructure reuters.com.
• AI & Social Media Scrutiny: (Tech companies also faced regulatory heat on other fronts.) U.S. Senator Josh Hawley launched a probe into Meta’s policies on AI, following reports of its chatbots engaging in inappropriate interactions with minors reuters.com reuters.com. And in media, MSNBC announced a rebranding to “MS Now” as parent Comcast prepares to spin off the cable news network reuters.com reuters.com. While relatively minor moves, they highlight how both Big Tech and traditional media are adapting – whether through oversight or rebranding – in a rapidly evolving digital landscape.

Energy & Commodities

• Oil Prices Rebound on Peace Hopes: Crude oil prices ticked up at the start of the week, buoyed by renewed diplomacy in the Russia-Ukraine war. Brent crude settled +1.14% at about $66.60/barrel on Monday, while WTI rose near $63.40 reuters.com reuters.com. The modest rally followed a high-profile White House meeting between President Trump and Ukraine’s Volodymyr Zelenskiy aimed at charting a path to end the conflict reuters.com. Trump expressed hope for a future trilateral summit with Russia’s Putin and signaled a shift toward pursuing a peace deal instead of an immediate ceasefire reuters.com. Oil traders latched onto the possibility of de-escalation, even as last week’s U.S.-Russia talks ended without resolution reuters.com reuters.com. Supply concerns also gave prices a lift: Ukrainian drones struck a Russian oil pipeline (Druzhba) feeding Eastern Europe, halting flows to Hungary and Slovakia reuters.com reuters.com. Meanwhile, a White House adviser bluntly warned India to curb imports of Russian crude that “give Moscow the dollars it needs” to fund its war, highlighting geopolitical risks to oil supply reuters.com reuters.com. Investors are now watching if any concrete peace negotiations emerge and eyeing Fed Chair Jerome Powell’s remarks at Jackson Hole this week for signals on demand outlook reuters.com.
• Big Bet on Carbon Capture: In a notable clean-energy deal, BlackRock’s Global Infrastructure Partners fund agreed to acquire a 49.99% stake in Eni’s carbon capture and storage (CCUS) unit reuters.com. Italy’s Eni announced the partnership Monday as part of its strategy to spin off and fund low-carbon businesses reuters.com reuters.com. The CCUS portfolio includes major carbon capture projects in the UK (HyNet and Bacton) and future rights to one in Italy reuters.com. “Consolidating our CCUS portfolio into a dedicated entity, and the entry of GIP as a strategic partner, will further enhance our ability to deliver large-scale, technically advanced decarbonisation solutions,” said Eni CEO Claudio Descalzi reuters.com. While financial terms weren’t disclosed, industry analysts note the deal brings deep-pocketed backing to Eni’s carbon-reduction ventures and reflects growing investor appetite for climate infrastructure.
• Tech Meets Energy: Even Big Tech is wading into the energy transition – Google announced plans to build a small modular nuclear reactor in Tennessee to power its data centers reuters.com. The unconventional project, revealed on Aug. 18, underscores the surging power demands of cloud computing and AI. Data centers’ electricity use is soaring, and operators like Google are seeking innovative (and carbon-free) ways to keep the servers running. The Tennessee reactor, a first-of-its-kind for a tech company, is slated to provide steady clean energy to Google’s facilities in the region reuters.com. Analysts say if successful, the move could be a blueprint for pairing modular nuclear plants with tech infrastructure – marrying Silicon Valley’s appetite for reliable power with the push for emissions-free grids.

Retail & Consumer

• Shein’s IPO Moves: Ultra-fast fashion powerhouse Shein is exploring a relocation of its headquarters back to China as it preps for an initial public offering. The Singapore-based online retailer has consulted lawyers about setting up a new parent entity in mainland China to satisfy Beijing regulators and win approval for a Hong Kong IPO, Bloomberg reported reuters.com. Discussions are preliminary, and Shein did not confirm the report reuters.com. But the deliberations underscore the hurdles Chinese-founded companies face in overseas listings. Shein – valued around $66 billion – had previously eyed New York and London IPOs, but hit roadblocks as U.S. politicians questioned its labor practices and Chinese authorities refused sign-off amid Sino-Western tensions reuters.com. By potentially coming “home” to China, Shein hopes to finally go public in Hong Kong after years of attempts. Market watchers say Beijing would likely welcome a major tech listing locally, especially as China tries to bolster its capital markets. The move could also ease Western political concerns if Shein is seen as under Chinese jurisdiction and scrutiny.
• Consumer Sentiment & Earnings: (Elsewhere in retail, early reports show mixed consumer trends.) Big-box bellwether Walmart is set to report earnings this week amid robust U.S. consumer spending, while Target warned of softer sales as inflation-weary shoppers pulled back on discretionary purchases. In Europe, retailers got a breather from easing energy costs and slowing inflation, though poor weather dampened August retail foot traffic. Overall, the global consumer remains resilient but value-focused – evidenced by booming demand for weight-loss drugs and discount fashion even as luxury sales cool in China. (Analysts expect the upcoming fall season and holiday forecasts to shed more light on retail’s trajectory.)

Real Estate & Property

• China’s Debt Deal & Evergrande Delisting: China’s long-running property crisis saw a new twist as Country Garden, once the nation’s largest developer, reached a crucial agreement in its debt restructuring. The struggling builder said on Monday that a core group of its bank creditors – representing 49% of its offshore debt – have agreed to its $14.1 billion offshore debt overhaul plan reuters.com reuters.com. This level of creditor support (77% by value) clears the threshold needed to push the restructuring forward reuters.com. Country Garden had defaulted on $11 billion in overseas bonds in late 2023, becoming a high-profile casualty of China’s real estate meltdown after Evergrande’s collapse reuters.com. The new deal, which follows bondholder backing won in April, gives Country Garden a lifeline as it aims to slash offshore debt by 78% and finalize terms by year-end reuters.com reuters.com. However, the developer remains under a liquidation petition with a court hearing set for January 2026 reuters.com – a stark reminder that risks linger. In fact, the sector’s poster child, China Evergrande Group, is officially being delisted from the Hong Kong Stock Exchange on Aug. 25 after failing to produce a viable restructuring plan during 18 months of liquidation proceedings reuters.com. Evergrande’s $300 billion debt debacle set off this crisis in 2021, and its liquidation has been painstaking – liquidators have only sold $255 million in assets so far reuters.com reuters.com. The Evergrande delisting marks a grim milestone in China’s property bust, which has dragged home prices and construction activity into a multi-year tailspin reuters.com. Authorities in Beijing have rolled out support measures (like easing mortgage rules and cutting rates) in attempts to stabilize the property market, but trust in developers remains shaken. The implications of Country Garden’s workout and Evergrande’s collapse are far-reaching: a sustained real estate slump is weighing on China’s overall economic growth and consumer confidence, prompting expectations of more stimulus to come.
• Global Real Estate Highlights: Outside China, real estate news was more mixed. U.S. housing data showed new home construction ticking up slightly in July as builders capitalized on a shortage of existing homes, but higher mortgage rates continued to deter buyers. In Europe, commercial property markets remained sluggish – London office vacancy hit multi-year highs and German housing prices continued to cool. One bright spot: Middle Eastern sovereign funds and private equity firms are reportedly bargain-hunting Western real estate, from warehouses to hotels, betting on a long-term rebound. Overall, high interest rates worldwide have reset real estate valuations, and investors are cautiously watching for distress or opportunities in the months ahead.

Automotive & Transportation

• Tesla’s Global Pivot: Tesla is shaking up strategy in key markets as electric vehicle competition intensifies. In China, the EV maker teased a new variant – the Model Y “L” – on social media as “coming soon” reuters.com and has now begun taking orders. The Model Y L is a roomier six-seat, long-wheelbase version of Tesla’s best-selling crossover, tailored to Chinese consumers’ tastes reuters.com. Priced from ¥339,000 (≈$47,200) reuters.com, the Model Y L aims to re-energize Tesla’s sales in China, which slipped 8.4% in July amid fierce price wars with local EV rivals like BYD and Xiaomi reuters.com reuters.com. Elon Musk’s company has been refreshing its lineup – a longer-range Model 3 is also due in China soon reuters.com – to fend off competitors offering cheaper models. Meanwhile in Europe, Tesla has been forced into hefty discounts. The company nearly halved its UK lease prices versus a year ago to spur demand, according to industry reports reuters.com. Tesla gave leasing firms discounts up to 40% in Britain because of bloated inventory and insufficient storage space for unsold cars reuters.com reuters.com. U.K. Tesla sales plunged ~60% year-on-year in July (to fewer than 1,000 units) amid broader softness in auto sales reuters.com reuters.com. The price cuts underscore how Tesla is adjusting to regional market realities: slashing prices in Europe’s slower market while launching new products in China’s hotly contested arena. Investors will be watching whether these moves stabilize Tesla’s global market share or further squeeze its profit margins.
• India’s Car Tax Revamp: In a boon for automakers, India unveiled plans for a sweeping GST tax reform that will slash levies on small, affordable cars. The federal government proposed cutting the goods and services tax on compact cars (petrol engines <1200cc) to 18% from 28%, as part of the biggest tax overhaul since 2017 reuters.com reuters.com. The reform, announced by PM Narendra Modi’s administration over the weekend, is expected to make entry-level hatchbacks and sedans considerably cheaper for consumers starting in October (pending approval by India’s GST Council) reuters.com reuters.com. Auto industry leaders cheered the move. “This tax rationalisation is a huge reform… with more affordability, more people will come into the purchasing system,” said Maruti Suzuki Chairman R.C. Bhargava, whose company dominates India’s small-car market reuters.com. Investors agreed: shares of Maruti Suzuki surged nearly 9% on Monday to record highs reuters.com, and other domestic automakers (Mahindra, Hero MotoCorp, Bajaj Auto) jumped 2–4% reuters.com. The tax package also proposes slashing GST on insurance premiums from 18% down to 5% or even zero reuters.com reuters.com – a consumer-friendly move that lifted insurance stocks as well. While the cuts could strain government revenues, analysts say they should boost auto sales which have been lagging as buyers shifted to pricier SUVs. By making budget cars and insurance more affordable, the Modi government is not only spurring industry growth but also shoring up goodwill with middle-class voters ahead of next year’s general elections.
• Air Travel Turbulence: The transportation sector also saw labor tensions. Air Canada’s cabin crew strike stretched into its fourth day as of Aug. 19, disrupting hundreds of flights and travel plans. Nearly 8,000 flight attendants walked off the job over wage and scheduling disputes, forcing Air Canada to cancel routes and consolidate services reuters.com reuters.com. The airline and union representatives resumed talks with federal mediators on Tuesday to resolve the impasse reuters.com. The strike – one of the biggest airline labor actions in Canada in years – comes amid a wave of aviation labor disputes globally as workers leverage post-pandemic travel demand to seek better pay. Industry analysts warn that prolonged walkouts could dent airlines’ lucrative summer season and drive up labor costs industry-wide. (Notably, U.S. pilots at several carriers have also authorized strikes this year, though most reached deals without stoppages.) Air Canada’s management expressed optimism for a deal, but if talks falter, the Canadian government faces pressure to intervene to keep vital air services running.

Healthcare & Pharmaceuticals

• Weight-Loss Drug Push: A fierce business battle is unfolding over obesity and diabetes treatments, now a $100 billion+ market in the making. Danish pharmaceutical giant Novo Nordisk made waves by offering its popular diabetes drug Ozempic at a flat $499 per month for U.S. patients paying cash reuters.com. The new direct-to-consumer pricing (via Novo’s own online pharmacy and a tie-up with GoodRx) targets type-2 diabetics who lack insurance coverage for the pricey injections reuters.com reuters.com. Novo already sells Wegovy – a higher-dose version of semaglutide for weight loss – for $499/month out-of-pocket, and is now extending that model to Ozempic amid explosive demand reuters.com reuters.com. The stock market reacted swiftly: shares of GoodRx, the telehealth platform partnering with Novo, soared 34% on the news reuters.com. Novo Nordisk’s U.S.-listed stock also jumped ~5% to record highs, buoyed further by an FDA approval granted late last week for Wegovy to treat a form of liver disease (MAFLD, commonly known as fatty liver) reuters.com. Rival Eli Lilly, maker of the competing GLP-1 drug Zepbound (Mounjaro), has similarly been expanding direct sales. Both Novo and Lilly are racing to launch oral pills next year that could complement their weekly injectable shots reuters.com reuters.com. Notably, analysts predict these new obesity pills will be priced on par with existing injections – roughly $1,000 per month list price (or ~$500 on cash plans) – rather than at a premium reuters.com reuters.com. This breaks the pharma industry’s usual pattern of pricing new therapies higher, reflecting intense pressure to improve access. With over 40% of U.S. adults obese, demand is huge but insurers have been reluctant to fully cover these drugs, leading to a growing cash-pay segment reuters.com reuters.com. Policymakers are taking note: President Trump and lawmakers from both parties have publicly urged lower prices for weight-loss medications reuters.com, calling their limited affordability a national health concern. In response, manufacturers are expanding patient access programs even as they enjoy booming sales – Lilly’s diabetes/obesity franchise and Novo’s Wegovy are on track for tens of billions in revenue as they scramble to add production. The implication: The battle for this market is not just scientific but financial, with companies balancing investor expectations for growth against public scrutiny on pricing. As new competitors (including Pfizer, Amgen and others) develop weight-loss treatments, consumers could see more options – and possibly more price competition – in the coming years. For now, Novo Nordisk’s pricing gambit signals that market leaders are willing to sacrifice some margin to head off cheaper compounding pharmacies and keep the upper hand in the obesity drug boom reuters.com reuters.com.

Sources: Key stories were drawn from Reuters unless otherwise noted. Reuters provided detailed reporting on financial markets reuters.com reuters.com, corporate deals reuters.com reuters.com, energy prices reuters.com reuters.com, retail shifts reuters.com reuters.com, property sector turmoil reuters.com reuters.com, automotive developments reuters.com reuters.com, and healthcare breakthroughs reuters.com reuters.com between August 18 and 19, 2025. Additional context was incorporated from reputable financial news outlets (e.g. Bloomberg, FT) and industry analysts to provide background and implications for each development.