Rate Cut Fever, Crypto Records & Tariff Turmoil: August 2025’s Global Business Bombshells

Markets & Economy: Stocks Rally on Rate Cut Hopes

Global markets surged in mid-August as investors bet on imminent central bank easing. In the U.S., the S&P 500 and Nasdaq hit new record closing highs on August 13, buoyed by growing confidence that the Federal Reserve was nearing a rate-cut cycle reuters.com. The Dow Jones Industrial Average jumped 1.04% (over 460 points) that day reuters.com. Traders fully priced in a 25 basis-point Fed rate cut by the September meeting – the first cut since December – after data showed tame inflation despite tariff pressures reuters.com. “Valuations are elevated… at the end of the day, the key will be the delivery of earnings,” noted Katherine Bordlemay of Goldman Sachs Asset Management, pointing out that market gains have been driven by a few mega-cap stocks reuters.com. Indeed, breadth improved as beaten-down sectors like small-caps and healthcare outperformed, with the Russell 2000 up ~2% to a six-month high reuters.com.

European equities also climbed to a two-week peak, supported by generally positive earnings and relief over trade developments reuters.com reuters.com. Fresh Eurostat data showed euro zone industrial output fell 1.3% in June – a larger drop than expected – due to weakness in Germany, even as Q2 GDP eked out 0.1% growth reuters.com reuters.com. This mix of soft manufacturing and modest growth fueled expectations that the European Central Bank may pause further easing, especially as a new EU-U.S. trade deal and planned German fiscal stimulus provide some cushion reuters.com. Still, analysts caution Europe’s economy remains fragile, with annual growth tracking only ~1% amid structural challenges reuters.com. Elsewhere, Norway’s central bank held its benchmark rate steady and signaled a possible cut by year-end as inflation cooled reuters.com, while China’s central bank injected liquidity to support its slowing economy (although Chinese stocks remained choppy). In currency markets, the U.S. dollar hovered near multi-week lows as the drumbeat of Fed rate-cut bets grew louder, lifting the euro and yen reuters.com. Gold prices eased slightly as the dollar firmed and investors awaited U.S. economic data reuters.com, whereas oil prices rebounded from two-month lows – rising about 0.7% on August 14 – amid geopolitical risks and the prospect of U.S. monetary easing reuters.com reuters.com.

Finance & Policy: Banks, Tariffs and M&A Shakeups

Tariff tensions remained a dominant theme, with U.S. President Donald Trump’s trade policies reverberating through corporate and policy circles. Trump publicly rebuked Goldman Sachs CEO David Solomon for the bank’s research suggesting U.S. consumers had absorbed 22% of tariff costs reuters.com reuters.com. In a barbed social media post, Trump claimed foreign firms were paying the tariffs and quipped that Solomon should “focus on being a DJ… and not bother running” Goldman reuters.com reuters.com. Goldman’s analysts had warned Trump’s import duties could hurt the economy, a stance that drew Trump’s ire as he pressures corporates to support his trade narrative. The President’s combative approach has put executives on edge – he has similarly targeted other CEOs (from Intel to Apple) over policy disagreements reuters.com reuters.com. Companies are also contending with the tariff fallout directly: Goldman’s economists now predict the Fed will cut rates three times in 2025 (and twice more in 2026) to offset trade-related drags reuters.com, and Bank of England policymakers, facing a cooling UK economy, delivered a surprise rate cut earlier in the month (providing a template for dovish shifts globally).

Major regulatory actions made headlines too. New York’s Attorney General sued Zelle, the popular bank-owned payment platform, alleging its failure to implement basic security controls enabled over $1 billion in fraud losses to consumers reuters.com. The lawsuit comes after the U.S. CFPB dropped a similar case – part of a broader pullback in enforcement under Trump’s administration reuters.com. Zelle’s parent company (owned by seven big banks) rejected the claims as “meritless,” but the case underscores rising scrutiny on fintech amid surging digital payments. In India, regulators turned up the heat on multinational couriers: executives from FedEx, UPS and DHL were summoned in an antitrust probe into alleged collusion in parcel delivery pricing reuters.com reuters.com, reflecting emerging markets’ resolve to police foreign firms.

It was also an active period for banking sector deals and shifts. Canada’s BMO (Bank of Montreal) was reported to be exploring a sale of its transportation finance unit, as part of a strategic review reuters.com. And in Europe, UniCredit’s planned merger with Alpha Bank’s Romania arm was slated to finalize by mid-August, continuing a consolidation wave in European banking. Notably, CIBC (Canada) announced a leadership shakeup ahead of a CEO transition reuters.com, while in Australia, Westpac posted a 5% profit rise on improved lending margins reuters.com. Meanwhile, the long-running saga at Italy’s Mediobanca took a twist as proxy advisor Glass Lewis urged investors to back a proposal to merge with rival Banca Generali reuters.com – setting the stage for a crucial shareholder vote next week in a battle over the Milanese bank’s future reuters.com reuters.com.

On the mergers & acquisitions front, mid-August delivered a mix of strategic tie-ups. In a headline apparel deal, Canada’s Gildan Activewear agreed to buy U.S. undergarment maker HanesBrands for $2.2 billion in cash and stock reuters.com. Gildan will pay $6 per share (a 24% premium) to acquire the iconic Hanes, expanding its footprint in basic apparel and combining Hanes’ famous brands (Hanes, Maidenform, etc.) with Gildan’s global manufacturing reach reuters.com reuters.com. “The combination…makes sense on paper,” observed Citigroup analysts, who believe Gildan’s low-cost production expertise can streamline HanesBrands’ operations reuters.com. HanesBrands stock surged 40% upon rumors of the takeover and remains up ~2.6% post-announcement reuters.com. In the UK, a notable property merger saw student-housing operator Unite Group snap up rival Empiric Student Property for £678 million (≈$860 million) in a cash-and-stock deal reuters.com, consolidating the student accommodation sector. And in autos, Mercedes-Benz was reportedly in talks to sell its fleet leasing unit to BNP Paribas, according to Bloomberg – a move that would reshape Europe’s auto financing landscape reuters.com reuters.com.

Technology & Telecom: AI Boom and Big Tech Moves

Artificial intelligence fervor continued to reshape the tech industry’s fortunes. Taiwanese manufacturing giant Foxconn – best known as Apple’s top iPhone assembler – reported a 27% surge in Q2 profit, handily beating forecasts thanks to “robust demand for AI servers,” which it expects to continue reuters.com reuters.com. In fact, booming orders from cloud giants like Amazon, Google, and Microsoft for AI data centers boosted Foxconn’s server revenue so much that it exceeded smartphone revenues for the first time in Q2 reuters.com reuters.com. Foxconn’s leadership is bullish on AI, projecting 170% year-on-year growth in AI server sales next quarter, and is hiking capital spending 20% to expand server production in the U.S. (with new capacity in Texas and Wisconsin) reuters.com reuters.com. “AI has been the primary growth driver so far this year,” said Foxconn’s rotating CEO Kathy Yang, though she cautioned that tariffs and exchange rates pose uncertainties going forward reuters.com. Notably, Washington and Beijing extended their tariff truce for 90 days this week, averting a new round of duties reuters.com reuters.com – news welcomed by hardware firms. China’s Lenovo, the world’s largest PC maker, lauded the U.S.-China tariff pause as “a positive… bringing more certainty” after releasing strong earnings reuters.com reuters.com. Lenovo’s CEO highlighted that the company’s revenue jumped 22% (with net profit more than doubling) on high demand for AI-enabled PCs and servers, even as U.S. export curbs on chips force Chinese tech players to adapt reuters.com reuters.com. Lenovo’s AI server business grew 150% last quarter, and the firm is investing in domestic components to navigate geopolitical tech rifts reuters.com reuters.com.

Big Tech companies also made bold moves. Apple’s stock got a 1.6% lift after reports that the company is plotting an expansion into AI-powered products – including smart-home robots, security systems and displays – signaling a foray into new device categories as AI tech matures reuters.com. In social media, WhatsApp (Meta Platforms) accused Moscow of trying to stifle secure messaging for over 100 million Russians, after Russia restricted voice calls on WhatsApp and Telegram under the pretext of combating fraud and extremism reuters.com reuters.com. WhatsApp blasted the move, stating its service is “end-to-end encrypted, and defies government attempts to violate people’s right to secure communication”, vowing to keep connections open in Russia reuters.com reuters.com. The Kremlin’s crackdown – which has already blocked Facebook/Instagram and throttled YouTube – is part of a broader push to drive users to a new state-owned app, raising censorship and surveillance fears in the tech community reuters.com reuters.com. Meanwhile, Tesla found itself navigating a PR dilemma in its largest market. A Reuters piece noted that calls for boycotts of Tesla over Elon Musk’s polarizing political stances have dented its sales in some regions, but “Tesla shame” hasn’t hit Norway – where the EV maker’s deliveries actually jumped 24% as that eco-conscious nation shrugs off the controversy reuters.com reuters.com. This highlights the divergent consumer responses Tesla faces globally, even as it remains on track to begin shipping its Cybertruck later this year.

Elsewhere in tech, payments and fintech saw both ups and downs. Dutch payment processor Adyen shocked European markets by cutting its revenue outlook, blaming U.S. import tariffs for slowing growth in key retail clients and a broader volume slowdown reuters.com reuters.com. Despite a 20% rise in first-half sales, Adyen missed targets and warned previously hoped-for acceleration now looks “unlikely,” sending its stock plunging about 20% reuters.com reuters.com. Its CFO flagged weaker trends among big Asia-Pacific e-commerce customers amid trade tensions and currency volatility reuters.com reuters.com. Adyen had been outperforming peers thanks to its global client base, but the tariff headwinds underscore how international fintech firms are getting buffeted by geopolitics. In contrast, India’s fintech scene saw a bright spot as payments startup HoneyCoin raised $4.9 million in new funding on Aug 13 (per FinTech Global), reflecting investor appetite in emerging markets digital finance fortune.com.

Energy & Commodities: Oil Rebounds as Geopolitics Loom

It was an eventful week for energy markets, with oil prices seesawing on supply signals and geopolitical maneuvers. After sliding to multi-month lows on oversupply fears, crude bounced back ~0.7% on August 14, with Brent crude topping $66 and WTI ~$63 reuters.com. The catalyst: traders braced for a high-stakes U.S.-Russia summit on Ukraine scheduled for August 15 in Alaska reuters.com. Investors weighed whether talks between Trump and Putin might tighten Russian oil exports – Trump has threatened “severe consequences” (including secondary sanctions) if Moscow doesn’t agree to a peace deal reuters.com reuters.com. That saber-rattling injected a “bullish risk premium” into oil, as Rystad Energy noted, given that tougher U.S. curbs on buyers of Russian crude (like China and India) could disrupt flows reuters.com. “Clearly there’s upside risk for the market if little progress is made on a ceasefire,” added ING’s head of commodities Warren Patterson reuters.com. At the same time, analysts believe the oil market can weather some supply losses – thanks to an expected glut later this year and ample OPEC spare capacity – unless sanctions spread to more major importers like China or Turkey reuters.com.

Also supporting oil was the general rate-cut optimism lifting all risk assets: expectations of a Fed rate cut in September (now seen as almost 100% likely after soft U.S. inflation) tend to weaken the dollar and boost commodity demand reuters.com. In fact, U.S. Treasury Secretary Scott Bessent even floated the possibility of an aggressive 50 bps Fed cut given recent weak jobs data, a comment that, while unusual, added to the “lower rates are coming” sentiment permeating markets reuters.com. On the supply side, the U.S. EIA and IEA both issued bearish oil outlooks earlier in the week – projecting an output surplus through 2025/26 – which had pressured prices to their recent lows reuters.com reuters.com. Those forecasts, combined with a seasonal ebb in demand post-summer, suggest any price spikes may be capped in the medium term. Meanwhile, natural gas prices in Europe inched higher as workers in key Australian LNG facilities voted to strike, threatening a significant chunk of global LNG exports (a development unfolding just after Aug 14). In metals, gold drifted down to around $1,910/oz as the firmer dollar and impending U.S. retail data kept bullion bulls at bay reuters.com, though some investors were positioning for upside if central banks pivot dovish.

Retail & Consumer: E-Commerce Strength vs. Consumer Caution

The consumer and retail sector yielded a mix of upbeat corporate results and reminders of economic strain. In e-commerce, China’s JD.com beat expectations with a double-digit rise in quarterly revenue, crediting steady online demand in spite of macro headwinds reuters.com reuters.com. The Chinese shopping giant’s performance underscores how a growing middle class and post-pandemic digital habits are sustaining retail sales in China, even as its overall economy cools. U.S. e-commerce leader Amazon doubled down on fast delivery: it added perishable groceries to its same-day delivery service for the first time reuters.com reuters.com. By expanding fresh food delivery in select cities, Amazon is directly taking on Instacart and Walmart in the battle for online grocery shoppers. Amazon’s move highlights intensifying competition in the retail delivery space – a fight for convenience-hungry consumers that is compressing margins but driving innovation in logistics.

Traditional retailers saw divergent fortunes. German footwear maker Birkenstock reported a surprise profit beat, citing strong full-price demand for its iconic clogs and sandals reuters.com reuters.com. The company – which had gone public not long ago – also said it’s navigating new U.S. import tariffs (15% duties on European shoes) with pricing power and supply chain tweaks reuters.com reuters.com. But not everyone is escaping the tariff bite: Dutch payments firm Adyen (a key backend provider for online retail) warned that U.S. tariffs are dampening its big retail clients’ growth, forcing it to trim its outlook (as noted above) – news that sent shockwaves through European markets as Adyen’s stock plunged nearly one-fifth reuters.com reuters.com. In the brewing industry, Denmark’s Carlsberg missed profit forecasts for the first half and warned of a tough year ahead, as beer sales in some markets lagged and the company faces higher commodity costs reuters.com reuters.com. Carlsberg’s CEO flagged weaker consumer spending in parts of Europe, illustrating how inflation and uncertainty are making shoppers cautious about discretionary buys (even beer).

In the apparel and luxury segment, consolidation and strategic shifts grabbed attention. In a headline-grabbing acquisition, Canada’s Gildan agreed to purchase HanesBrands for $2.2 billion reuters.com – merging one of the world’s largest blank T-shirt makers with the owner of household names like Hanes underwear and Champion. The deal (with a 24% premium for HanesBrand shareholders) aims to create a basics apparel powerhouse and rejuvenate Hanes’ fortunes after a slump in its share price reuters.com reuters.com. Also, U.S. luxury conglomerate Tapestry Inc. (owner of Coach and Kate Spade) was expected to post a ~5.5% revenue rise for last quarter, driven by younger shoppers snapping up Coach handbags reuters.com. That report, due shortly after Aug 14, is being closely watched for signs of resilience in higher-end consumer demand. On the retail operations side, Walmart made a notable HR move: the mega-retailer expanded its longstanding 10% employee discount to cover most grocery items for the first time reuters.com. By including groceries (a low-margin category) in the staff discount, Walmart aims to support its workforce amid rising living costs and retain talent in a competitive labor market. The gesture also signals confidence in the retailer’s momentum, coming on the heels of strong sales in prior quarters.

However, the strain on brick-and-mortar retail was evident in the UK, where mall-based jewelry chain Claire’s filed for administration, putting 2,150 jobs at risk reuters.com. Claire’s UK operations succumbed to a mix of heavy debts and slow post-COVID foot traffic, exemplifying the pressures on retailers reliant on teen fashion spending. And in India, the parent franchisee of Domino’s Pizza reported higher profits on booming delivery demand reuters.com, whereas the local KFC operator saw profits dip as aggressive advertising spend weighed on margins reuters.com – a tale of two fast-food strategies in a rapidly growing market.

Cryptocurrency & Blockchain: Bitcoin Soars and Crypto IPO Frenzy

Cryptocurrencies erupted into a new rally as regulatory winds turned favorable. Flagship crypto Bitcoin hit an all-time high on August 14, breaking above $124,000 for the first time reuters.com reuters.com. The token is up ~32% year-to-date, propelled by mounting certainty of U.S. rate cuts and a series of pro-crypto policy moves reuters.com reuters.com. “Bitcoin’s rally is being powered by increasing certainty of Fed rate cuts, sustained institutional buying and moves by the Trump administration to ease investment in crypto,” explained Tony Sycamore, market analyst at IG Markets reuters.com. Indeed, President Trump – who proudly calls himself the “crypto president” – has overseen a string of industry-friendly measures since returning to the White House reuters.com reuters.com. Just last week, he signed an executive order opening 401(k) retirement plans to cryptocurrencies, a landmark step that could funnel fresh billions into digital assets reuters.com reuters.com. Additionally, U.S. regulators passed long-sought stablecoin legislation and adjusted securities rules to accommodate crypto products reuters.com. This newfound regulatory clarity has supercharged sentiment: analysts note a broad crypto market cap swelling to ~$4.2 trillion (up from $2.5T pre-election) amid hopes that ETFs and mainstream adoption will further legitimize the asset class reuters.com reuters.com. Sycamore suggested that if Bitcoin holds above ~$125K technically, “it could propel BTC to $150,000” in the near future reuters.com reuters.com.

The crypto boom is also spilling into equity markets. Bullish, a cryptocurrency exchange operator, staged a “blowout” IPO debut on the NYSE on Aug 13 – a rare feat for a digital assets firm. Bullish’s stock more than doubled on its first day, vaulting the company’s valuation to nearly $13.2 billion in market cap reuters.com reuters.com. Priced at $37 a share, the IPO raised $1.11 billion (valuing Bullish at ~$5.4B at offer), but frenzied demand quickly drove the stock as high as $118 intraday reuters.com reuters.com. “Bullish came out with an attractive initial valuation, and investors responded by aggressively bidding it up,” said Jeff Zell of IPO Boutique, noting the successful listing bodes well for other crypto firms eyeing U.S. markets reuters.com reuters.com. The parent company of CoinDesk was among those riding the wave, as the sector’s momentum – bolstered by the aforementioned U.S. policy support and rising institutional interest (like BlackRock’s proposed Bitcoin ETF) – is encouraging even once-wary investors to embrace crypto equities reuters.com reuters.com.

On the darker side of crypto, a dramatic legal chapter closed: Do Kwon, the fallen entrepreneur behind the $40 billion TerraUSD/Luna stablecoin collapse, pleaded guilty to U.S. fraud charges on Aug 13 reuters.com. The 33-year-old Terraform Labs founder admitted to conspiring to defraud investors after prosecutors said he lied about the stability of Terra’s $1 peg, which broke in 2022 and triggered a broader crypto market meltdown reuters.com reuters.com. “Do Kwon used the technological promise and investment euphoria around cryptocurrency to commit one of the largest frauds in history,” asserted Manhattan U.S. Attorney Jay Clayton in a statement announcing the plea reuters.com. Kwon now faces up to 25 years in prison, though under a plea deal the government will recommend no more than 12 years if he accepts responsibility reuters.com reuters.com. His sentencing in December will cap a cautionary tale of crypto excess: Terra’s implosion erased tens of billions in value, contributing to the downfall of several crypto lenders and sparking calls for stricter stablecoin regulation. The guilty plea marks one of the highest-profile convictions in the post-2022 crypto crackdown, joining a roster of disgraced crypto moguls facing justice.

Sources: Reuters, Aug 13–14, 2025 reuters.com reuters.com reuters.com reuters.com reuters.com reuters.com, et al.