Development Institutions Prepare for ‘a World Without the US'
The Trump Administration Takes Aim at Transportation Research
Shelters Await Billions in Federal Money for Homelessness Providers
NYC's Congestion Pricing Pulls In $48.6 Million in First Month
New York's Congestion Pricing Plan Faces Another Legal Showdown
NYC to Shut Migrant Center in Former Hotel as Crisis Eases
The US government and its branches have been largely absent from the Finance in Common Summit, an annual gathering of public development banks with $23 trillion in assets known as FICS that this year took place alongside a meeting of the finance ministers of the Group of 20 large economies in Cape Town. That comes as the country's secretaries of State and Treasury skipped the G-20 gatherings this month in South Africa amid a broader withdrawal of US global leadership.
'Everyone has to plan for a world without the US,' said Damilola Ogunbiyi, chief executive of the United Nations' Sustainable Energy for All institute, which promotes energy access, in an interview in Cape Town on Thursday. 'The world is not just the US.'
Since taking office on Jan. 20, President Donald Trump has dismantled the United States Agency for International Development, which has a $40 billion annual budget. That, among other impacts, has disrupted life-saving HIV/Aids treatment programs in countries from Nigeria to South Africa and ended an energy access program in Africa that was set up by former US President Barack Obama.
His attack on renewable energy and climate programs, and appointment of a vaccine skeptic as health secretary, have sown uncertainty in the development finance world as to whether the US will honor funding commitments it's already made or provide money for climate, health and humanitarian initiatives in the future.
Trump's actions come at the same time that many wealthy European nations are slashing their aid budgets, including major donors like the UK, France and the Netherlands.
'Everything is up in the air,' Rémy Rioux, CEO of Agence Française de Développement and current chairman of FICS, said in an interview. 'There's a huge gap that I think I don't see anybody completely filling.'
Still, 'in these times multilateralism has to reinvent and to deepen,' he added. 'We want to stick to the sustainable and inclusive development agenda.'
China's Opportunity
Washington's absence also creates an opportunity for its geopolitical rivals to build influence.
'We at the Asian Infrastructure Development Bank are based in Beijing but our heart goes to all the people in the world,' Jin Liqun, the AIIB's chairman, said at a press conference at FICS. 'Free trade and cross-border investment is important. People will quickly find that by shutting yourself off from the rest of the world you will suffer.'
In a draft final communique the FICS group said it represents 536 public development finance institutions and public development banks and stressed that the conference had attracted a record 2,500 delegates.
'Everyone here is willing to cooperate on the global challenges — climate change, biodiversity, health, creation of jobs, reduction of inequalities,' said Audrey Rojkoff, the AFD's regional director for Southern Africa. Even if the US is unwilling, 'the others are cooperating,' she added.
Trump's SALT Tax Promise Hinges on an Obscure Loophole
Warner Bros. Movie Heads Are Burning Cash, and Their Boss Is Losing Patience
Walmart Wants to Be Something for Everyone in a Divided America
China Learned to Embrace What the US Forgot: The Virtues of Creative Destruction
Meet Seven of America's Top Personal Finance Influencers
©2025 Bloomberg L.P.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
21 minutes ago
- Yahoo
AMD to report Q2 earnings as Wall Street looks to AI, PC sales growth
AMD (AMD) will report its second quarter results after the bell on Thursday, giving Wall Street a better understanding of the AI chip market ahead of rival Nvidia's (NVDA) report later this month. The company stands to benefit from the resumption of its chip sales in China after the Trump administration briefly banned them in April, as well as the potential for pull-forward in CPU sales as manufacturers built up inventory to fend off the impact of tariffs on PC sales. AMD shares are up 47% year to date and 34% over the last 12 months, while Nvidia shares are up 33% and 66%, respectively. For the quarter, AMD is expected to see adjusted earnings per share (EPS) of $0.49 on revenue of $7.4 billion, according to Bloomberg consensus estimates. That would represent a 29% decline in EPS but a 27% jump in revenue. Part of the reason for that is that AMD is expected to take a $700 million hit from the Trump administration's ban on the sale of the company's MI308 AI chips for China. That's far lower than the $4.5 billion write-down Nvidia took in Q1 and the $8 billion it said it would take in Q2 due to the impact of the ban on its own China-specific chip. Trump reversed course on the ban last month, which should help make up for some of those losses in the coming quarters. AMD should also benefit from the launch of its MI350 line of AI chips, designed to go toe-to-toe with Nvidia's Blackwell-powered chips. According to AMD, the MI350 line, which includes the MI350X and MI355X, offers four times the AI compute performance and a 35x increase in inferencing capabilities versus its predecessors. 'We expect AMD to post higher results and higher guidance, as we see improving traditional server demand and latest generation share gains, as well as strong demand for MI355,' KeyBanc Capital Markets analyst John Vinh wrote in an investor note ahead of the company's earnings. AMD's Data Center segment is expected to bring in $3.2 billion in the quarter, up 14% year over year from Q2 2024 when the business generated $2.8 billion. Beyond the Data Center segment, AMD's Client business, which includes sales of CPUs for desktops and laptops, is expected to see $2.5 billion. That's a massive 71% jump versus the $1.4 billion it brought in during the same quarter last year. That anticipated increase is thanks to the anticipated pull-forward in laptop and desktop shipments to combat the Trump administration's tariffs. But it will also hurt sales in the back half of the year. 'Similar to [Intel], we expect AMD Client to benefit from tariff-related pull-in of demand in Q2, and that same benefit to likely reverse in 2H, leading to below-seasonal Q3/Q4,' BofA Global Research analyst Vivek Arya wrote in an investor note. 'For [Intel], new Street estimates for [Client Computer Group] now point to +4%/+2% [quarter-over-quarter growth] in Q3/Q4, below +7%/+4% prior to Q2 earnings and also below typical +9%/+4%,' Arya added. 'However, for AMD, we highlight Street estimates already embed the demand normalization, with Client estimates of +2%/+0% in Q3/Q4 well below typical +15%/+14%.' Email Daniel Howley at dhowley@ Follow him on X/Twitter at @DanielHowley. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21 minutes ago
- Yahoo
Rolex, luxury watchmakers brace for Trump's tariffs on Swiss imports
Switzerland is bracing for a big tariff hike on its exports, and its watch industry could take the brunt if President Trump hits Alpine nations with an enhanced 39% tariff for its exports, slated to start on Aug. 7. The Swiss watch industry employs thousands of artisans at various watchhouses that pump out millions of wristwatches and clocks each year. The industry also employs thousands in corporate and retail roles too. In 2024, Swiss watch exports hit $29.5 billion, second only to manufactured items like pharmaceuticals and chemical products, with the US being Switzerland's main trade partner. A tariff at these levels could crush demand for new Swiss watches. 'A 39% markup could make even a stainless-steel Submariner at retail jump from $10,000 to nearly $14,000,' secondhand dealer Bob's Watches CEO Paul Altieri said to Yahoo Finance. Read more: What Trump's tariffs mean for the economy and your wallet Altieri noted that Bob's Watches' demand for pre-owned models is on the rise, with buyers hoping to avoid the tariff price surge. Indeed, watch prices have already been rising in the US when Swiss exports were hit hit a 10% tariff earlier this year. Morgan Stanley and its data partner WatchCharts found that prices for luxury watchmakers like Patek Philippe (up 6.9%), Audemars Piguet (up 6.7%), and Richemont's ( Vacheron Constantin (up 6.5%) have risen the most in its second quarter industry report. And these tariff-fueled price hikes won't just be situated in the US but will likely affect global customers too, argued watch trading site Subdial, which runs an online watch marketplace and releases its own watch index with Bloomberg. 'If they increase prices in the US only, we may see a knock on effect in other markets. It seems more likely that brands will increase prices across all geographies (so as to maintain pricing parity, an important principle within luxury), and just accept lower margins on US stock on account of tariffs,' a spokesperson for Subdial said. Price hikes will push more of these buyers to the secondhand market, where the selection is vastly wider and deals can be found, the Subdial spokesperson added. The big watch houses and retailers aren't saying much at the moment about where prices are headed. Swiss-based Swatch Group ( is the largest watch producer in the world and counts brands like Omega, Blancpain, Breguet, and, of course, Swatch, in its portfolio. A spokesperson for the group said the company would not comment at this time. Geneva-based Rolex, which is estimated to produce over a million luxury watches a year, is in the tariff crosshairs. A Rolex spokesperson did not respond to Yahoo Finance when sought for comment. Watches of Switzerland (WOSG.L) is one of Rolex's top retail partners and operates certain 'monobrand' Rolex-only boutiques. 'We note the announcement of the proposed new US tariff rate on imports from Switzerland due to come into effect on 7th August and will continue to work closely with our brand partners to mitigate any potential impact,' the company said in a statement to Yahoo Finance. Mitigating the impact in this case likely means passing on tariff costs to customers and/or absorbing a small percentage. And this is because the effect of full passage to customer would be huge. For Rolex and Watches of Switzerland, the tariff effects may not be as severe since they operate their own certified pre-owned (CPO) watch programs. Last year Rolex bought Bucherer, the jewelry and luxury watch retailer that operates the Tourneau chain in the US. New watch buyers could shift to these CPO programs and still keep revenue flowing. But as Bob's Watches points out, used prices are climbing in sympathy as demand rises. Interestingly, Trump's tariffs on the Swiss could actually hurt his own business interests. Last year, Trump licensed his name for a range of Trump-branded watches, with models dubbed 'Fight Fight Fight" and 'Mugshot suit,' as well as a $100,000 Swiss-made tourbillon movement watch in solid 18K gold. Pras Subramanian is the lead autos and wealth reporter for Yahoo Finance. You can follow him on X and on Instagram. Click here for in-depth analysis of the latest stock market news and events moving stock prices
Yahoo
21 minutes ago
- Yahoo
Trump Slaps Tariffs, Modi Fires Back -- Is India Breaking Away from the US?
Indian Prime Minister Narendra Modi isn't backing down. Days after President Donald Trump slapped a surprise 25% tariff on Indian exports and warned of more action over India's oil ties with Russia, Modi doubled down on his buy local message. He urged citizens to prioritize Indian-made goods, while sources familiar with the matter told Bloomberg that New Delhi hasn't ordered refiners to stop buying Russian crude. Instead, refinersboth public and privateare still choosing suppliers based on commercial logic. The backdrop: Trump is ramping up pressure on India for its energy and diplomatic relationship with Moscow, just as global markets remain uneasy over war financing and shifting trade alliances. Warning! GuruFocus has detected 9 Warning Signs with GS. The rhetoric is heating up fast. Trump's team has accused India of cheating the US on trade and immigration, and signaled that all options are on the table to respond to its Russian oil purchases. But while the public messaging may sound tough, India isn't giving up much. Officials said US trade talks are still on, but they won't open up politically sensitive sectors like agriculture and dairy. And recent dealslike the one India just signed with the UKsuggest that Modi's government is moving at its own pace, carefully protecting domestic interests even while staying at the negotiating table. The pushback highlights how India, now the world's fastest-growing large economy, is becoming less willing to compromise under outside pressure. Despite the rising tension, markets aren't panicking. Indian equities climbed on Monday, while the rupee and government bonds also strengthened. The boost came after oil prices dropped sharplythanks to OPEC+ signaling it could raise output in Septemberwhich is a major win for India, a net fuel importer. While Indian refiners are preparing fallback plans in case Russian crude becomes unavailable, there's no sign of a near-term disruption. India is signaling it may not easily yield to pressure, even from a key partner. For global investors watching this unfoldincluding those with exposure to geopolitical-sensitive names like Tesla (NASDAQ:TSLA)India's balancing act between Washington and Moscow could become a defining theme for emerging market strategy in the months ahead. This article first appeared on GuruFocus.
