US economy

Bloomberg reports that the bond market is edging closer to signalling alarm about the state of the economy, with moves in US government debt prices suggesting investors are increasingly worried about the outlook. The item has drawn attention among market watchers tracking whether bond traders are pricing in a slowdown ahead of official data.

The United States and China have reached a trade deal to lower tariffs on roughly $30 billion worth of "non-sensitive goods", following a meeting between President Trump and President Xi this week. The agreement is expected to reduce prices on a range of consumer products, including small appliances, toys and holiday items, and is drawing wide attention as a step toward easing trade tensions between the two economies.

The US economy continues to show strong momentum, but rising government debt servicing costs are drawing attention as a growing strain. Commentators are weighing robust growth against the mounting price of financing federal deficits, a tension likely to feature in debates over interest rates, fiscal policy and the sustainability of US public finances.

The United States is preparing to finalize vehicle fuel economy standards set significantly lower than previously planned. The rollback of efficiency requirements would ease pressure on automakers to improve mileage and reduce emissions, marking a notable shift in US vehicle policy. The move is expected to draw debate over its impact on fuel costs, emissions and the auto industry.

President Trump has approved a rollback of US fuel economy standards, arguing that the looser rules will encourage automakers to expand manufacturing output in the United States. Supporters frame the move as relief for carmakers facing costly compliance requirements, while critics warn it could raise fuel consumption and emissions. The decision is expected to reshape regulatory requirements for vehicles sold in America.

The Trump administration is preparing to roll back fuel economy standards for cars and light trucks put in place under Joe Biden, according to reports by the Los Angeles Times and Bloomberg. The move would loosen emissions-related efficiency requirements for automakers, undoing one of the previous administration's key climate policies and reshaping the regulatory outlook for the US auto industry.

Pakistan's finance minister held talks with the US Export-Import Bank that covered financing for Boeing aircraft, according to an adviser. The discussions point to Islamabad seeking American export credit support for aircraft purchases as it works to secure external funding and stabilize its economy.

Discussion is focusing on the K-shaped US economy, in which higher-income consumers keep spending strongly while lower-income households cut back under pressure from higher prices and borrowing costs. PwC analysis is among the voices examining how this split is shaping retail sales and the broader economic outlook, with commentators asking how long resilient headline spending can mask strain on poorer households.

US Treasury Secretary Scott Bessent said Iran's economy will collapse "probably within the next 2 weeks," claiming Tehran will make its final oil deliveries to China and then have "NOTHING." He argued Iran is growing desperate for a nuclear deal as sanctions squeeze its oil exports, framing economic collapse as leverage pushing Tehran toward negotiations with Washington.

Mexico and Brazil are both refusing to follow Washington's military approach in South America, rejecting pressure to align with US interventionist tactics in the region. The two largest Latin American economies are instead pushing back against any export of America's security playbook, insisting on sovereignty and regional autonomy in how security matters are handled across the hemisphere.

Commentary is drawing comparisons between today's roughly 7.5% mortgage rates and the 18% rates US homebuyers faced in the early 1980s. The argument making the rounds is that the two situations differ sharply: home prices, household debt levels, affordability and the wider economy have changed so much that the nominal rate comparison is misleading for buyers deciding whether to wait or lock in now.