President Donald Trump announced plans to raise tariffs on generic drugs to 100% by 2028 and 200% thereafter, aiming to encourage domestic production in the U.S. This move poses a substantial risk to Indian pharmaceutical companies, which supply nearly half of the generic medicines consumed in America. In the AI sector, U.S.-China discussions are set for September, with U.S.
Treasury Secretary Scott Bessent indicating potential sanctions against Chinese AI models if they are found to have copied American technologies. Meanwhile, Samsung is reportedly considering a €1 billion investment in French AI company Mistral, which could significantly boost its valuation. On the geopolitical front, U.S.
Secretary of State Marco Rubio expressed skepticism about Iran's commitment to peace talks, coinciding with ongoing U.S. military actions in the region. Investors are also focused on earnings reports from Alphabet and Tesla, with Alphabet's stock having risen 4.5% over the past three months but remaining 15% below its May highs.
Tesla is expected to experience its largest post-earnings stock movement in a year. Additionally, some Japanese companies not traditionally associated with technology, such as Toto, Nittobo, and Ajinomoto, have seen significant stock gains this year, capitalizing on the AI boom despite their core businesses being in toilets, textiles, and seasoning, respectively