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President Xi Jinping gathered the leaders of Russia and India among dignitaries from around 20 Eurasian countries on Sunday to kick off a showpiece summit aimed at putting China front and centre of regional relations.The Shanghai Cooperation Organisation summit is being held in the northern port city of Tianjin until Monday, days before a massive military parade in the capital Beijing to mark 80 years since the end of World War II.The SCO comprises China, India, Russia, Pakistan, Iran, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan and Belarus — with 16 more countries affiliated as observers or “dialogue partners”.Russian President Vladimir Putin touched down in Tianjin on Sunday with an entourage of senior politicians and business representatives.Xi held a flurry of back-to-back bilateral meetings with leaders including Belarusian President Alexander Lukashenko — one of Putin’s staunch allies — and India’s Prime Minister Narendra Modi, on his first visit to China since 2018.Modi told Xi that India was committed to taking “forward our ties on the basis of mutual trust, dignity and sensitivity”.Xi, in turn, told Modi that he hoped the two countries would recognise that they are “partners rather than rivals”.If they see each other as “opportunities for development rather than threats”, China-India relations will grow steadily, Xi added, according to state broadcaster CCTV.The two most populous nations are intense rivals competing for influence across South Asia and fought a deadly border clash in 2020.A thaw began last October, when Modi met with Xi for the first time in five years at a summit in Russia.”The interests of 2.8 billion people of both countries are linked to our cooperation. This will also pave the way for the welfare of the entire humanity,” Modi told Xi.- ‘Project influence’ – The bilateral talks were held at the Tianjin Guest House, an intimate venue surrounded by lush greenery.Security guards positioned themselves around and inside the venue, their eyes scanning reporters and guests carefully, as Chinese diplomats hurried through the halls.Large sections of Tianjin were closed to traffic, with a significant police presence deployed around the city.Official posters promoting the SCO lined the streets, displaying words such as “mutual benefit” and “equality” written in Chinese and Russian.China and Russia have sometimes touted the SCO as an alternative to the NATO military alliance. This year’s summit is the first since US President Donald Trump returned to the White House.As China’s claim over Taiwan and Russia’s invasion of Ukraine have seen them clash with the United States and Europe, experts say that Beijing and Moscow are eager to use platforms such as the SCO to curry favour.”China has long sought to present the SCO as a non-Western-led power bloc that promotes a new type of international relations, which, it claims, is more democratic,” said Dylan Loh, an assistant professor at Singapore’s Nanyang Technological University.More than 20 leaders including Iranian President Masoud Pezeshkian and his Turkish counterpart Recep Tayyip Erdogan are attending the bloc’s largest meeting since its founding in 2001.- Talks on the sidelines -Putin is expected to hold talks on Monday with Erdogan and Pezeshkian about the Ukraine conflict and Tehran’s nuclear programme respectively.Xi met Erdogan on Sunday to discuss the situations in Gaza and Ukraine, a readout from Ankara said. Turkey has hosted three rounds of peace talks between Moscow and Kyiv this year that have failed to break the deadlock over how to end the conflict.The Russian president needs “all the benefits of SCO as a player on the world stage and also the support of the second largest economy in the world”, said Lim Tai Wei, a professor and East Asia expert at Japan’s Soka University.”Russia is also keen to win over India, and India’s trade frictions with the United States presents this opportunity,” Lim told AFP.The summit comes days after India was hit by a sharp bump up in US tariffs on its goods as punishment for New Delhi’s purchases of Russian oil.Many of the assembled dignitaries will be in Beijing on Wednesday to witness the military parade, which will also be attended by North Korean leader Kim Jong Un.

Stock markets fell Friday, with Wall Street indexes retreating from record highs as a key US inflation reading accelerated, lowering the possibility of sustained interest rate cuts in the coming months.Investors widely expect a cut next month to bolster the world’s largest economy after Federal Reserve chief Jerome Powell signaled last week the risks of labor market weakness.But the personal consumption expenditures (PCE) price index held steady at 2.6 percent in July, above the Fed’s two-percent target, with the core reading that strips out food and energy accelerating slightly to 2.9 percent.”The bad news is, inflation is continuing to inch higher, which isn’t really the environment the Fed likely wants to cut in,” said Bret Kenwell, an analyst at eToro.Although a September cut of 25 basis points is probably still on the cards, “it may be hard for them to move as quickly or aggressively as they’d like, with inflation moving higher,” he said.The main US indexes fell ahead of the long Labor Day weekend after the Dow and S&P 500 closed at all-time highs on Thursday.Wall Street will be closed Monday for the holiday.In Europe, German data showed that unemployment in Europe’s biggest economy topped three million in August for the first time in more than a decade.Battered by high energy costs and fierce Chinese competition, German manufacturers were struggling even before US President Donald Trump erected new tariff walls.Separate figures showed that German inflation rose in August for the first time this year, putting it at 2.2 percent, which could lessen the chances for further European Central Bank rate cuts.”As far as the European Central Bank is concerned, today’s German inflation data will catch the hawks’ attention, as it bolsters the argument for a high bar to yet another ECB rate cut,” said Carsten Brzeski, an economist at ING.Inflation slowed in France and Italy this month, however, and held steady in Spain.In Britain, an influential think tank said Friday that the Labour government could raise billions of pounds by imposing a windfall tax on banks in the UK.NatWest fell significantly on London’s top-tier FTSE 100 index, closing down 4.4 percent, and Lloyds and Barclays also saw heavy selling. The report by the Institute for Public Policy Research suggested that banks could be targeted in the Labour government’s autumn budget.”Any such rumours are likely to have an exaggerated impact given the government’s obvious need to raise more income in an attempt to mitigate its financial difficulties,” said Richard Hunter, head of markets at Interactive Investor.- Key figures at around 2035 GMT -New York – Dow: DOWN 0.2 percent at 45,544.88 points (close)New York – S&P 500: DOWN 0.6 percent at 6,460.26 (close)New York – Nasdaq: DOWN 1.2 percent at 21,455.55 (close)London – FTSE 100: DOWN 0.3 percent at 9,187.34 (close)Paris – CAC 40: DOWN 0.8 percent at 7,703.90 (close)Frankfurt – DAX: DOWN 0.6 percent at 23,902.21 (close)Tokyo – Nikkei 225: DOWN 0.3 percent at 42,718.47 (close)Hong Kong – Hang Seng Index: UP 0.3 percent at 25,077.62 (close)Shanghai – Composite: UP 0.4 percent at 3,857.93 (close)Euro/dollar: UP at 1.1693 from $1.1680 on ThursdayPound/dollar: DOWN at $1.3507 at from $1.3508 Dollar/yen: UP at 147.01 yen from 146.97 yen Euro/pound: UP at 86.56 at from 86.46 pence West Texas Intermediate: DOWN 0.9 percent at $64.01 per barrelBrent North Sea Crude: DOWN 0.7 percent at $68.12 per barrelburs-bcp-bys/sla

Japan pledged Friday to invest $68 billion in India during a visit by Prime Minister Narendra Modi to Tokyo, as the two countries agreed to deepen security ties.”India’s massive market is so full of potential that incorporating its vibrancy will help drive the growth of Japan’s economy,” Japanese Prime Minister Shigeru Ishiba told reporters.Bilateral trade is currently worth over $20 billion annually, heavily favouring Japan.Speaking during Modi’s two-day stopover before he visits China, Ishiba said Japan would boost investment in India to 10 trillion yen ($68 billion) and would establish a cooperation initiative focusing on semiconductors and AI.The two sides also pledged to bolster security cooperation, with Kyodo news agency reporting that the two had agreed to expand drills between Japan’s Self-Defense Forces and the Indian Armed Forces.The nations also expressed “serious concern” over the situation in the East China Sea and the South China Sea, in a separate joint statement, according to Kyodo.”As the international situation grows more and more uncertain, Japan and India must join hands for the sake of peace and stability of the region,” Ishiba told reporters.Modi said that “India and Japan are fully committed to a free, open, peaceful, prosperous and rules-based Indo-Pacific”.Earlier Modi told a business forum in Tokyo that India and Japan will “shape the Asian Century”, with India “the springboard for Japanese businesses to the Global South”.Both countries have been hit by tariffs imposed by US President Donald Trump, with levies of 50 percent on many Indian imports into the United States taking effect this week.Japan’s vital auto sector still faces 25 percent tariffs as a July trade deal cutting them — as well as additional “reciprocal” levies — is yet to come into force. Modi and Ishiba are set to tour a chip facility on Saturday.They will also visit a factory making “shinkansen” bullet trains, with a view to Japan assisting in a planned 7,000-kilometre (4,350-mile) high-speed rail network by the centenary of Indian independence in 2047.A joint project aimed at building a first high-speed link between the western Indian cities of Mumbai and Ahmedabad has been plagued for years with delays and cost overruns.Modi is due at a Shanghai Cooperation Organisation summit in China on Sunday and Monday, hosted by President Xi Jinping and also attended by Russian leader Vladimir Putin.The visit will be Modi’s first to China since 2018.The two most populous nations are intense rivals competing for influence across South Asia and fought a deadly border clash in 2020.But relations began to thaw last October when Modi met with Xi for the first time in five years at a summit in Russia.burs-aph/dhw

European stock markets fell Friday as investors digested mixed economic data, while shares in UK banks and the pound dropped on reports the sector could face a windfall tax.The Dow and the S&P 500 hit fresh record highs Thursday on Wall Street after an upward revision to US growth in the second quarter and bumper results from AI chip giant Nvidia.Friday sees the release of key US inflation data, which could provide further guidance on interest rates after Federal Reserve chief Jerome Powell signalled a cut was likely in September.”Markets are pricing in around a high probability of a cut by the Fed next month, and today’s… inflation numbers will be a key data point for monetary policy setters,” said Derren Nathan, head of equity research at Hargreaves Lansdown.”Markets are keeping a close eye on the impact of tariffs on the prices of goods and services,” he added. “If inflation comes in hotter than expected, the path towards a drop in US borrowing costs in December will become a little less clear.”In Germany, data showed that unemployment in Europe’s biggest economy topped three million in August for the first time in more than a decade.Battered by high energy costs and fierce Chinese competition, German manufacturers were struggling even before US President Donald Trump erected new tariff walls.Separate figures Friday showed that inflation slowed in France and Italy this month, and held steady in Spain.The euro fell against the dollar, whose rise against the pound was greater.In Britain, an influential think tank said Friday that the Labour government could raise billions of pounds by imposing a windfall tax on banks in the UK.The biggest fallers on London’s top-tier FTSE 100 index were lenders NatWest and Lloyds, which each shed around five percent in midday deals.The report by the Institute for Public Policy Research suggested that banks could be targeted in the Labour government’s autumn budget.”Any such rumours are likely to have an exaggerated impact given the government’s obvious need to raise more income in an attempt to mitigate its financial difficulties,” said Richard Hunter, head of markets at Interactive Investor.- Key figures at around 1100 GMT -London – FTSE 100: DOWN 0.3 percent at 9,193.21 pointsParis – CAC 40: DOWN 0.5 percent at 7,726.88 Frankfurt – DAX: DOWN 0.4 percent at 23,935.36Tokyo – Nikkei 225: DOWN 0.3 percent at 42,718.47 (close)Hong Kong – Hang Seng Index: UP 0.8 percent at 25,189.34Shanghai – Composite: UP 0.4 percent at 3,857.93 (close)New York – Dow: UP 0.2 percent at 45,636.90 points (close)New York – S&P 500: UP 0.3 percent at 6,501.86 (close)Euro/dollar: DOWN at 1.1667 from $1.1680 on ThursdayPound/dollar: DOWN at $1.3458 at from $1.3508 Dollar/yen: UP at 147.18 yen from 146.97 yen Euro/pound: UP at 86.69 at from 86.46 pence  West Texas Intermediate: DOWN 0.4 percent at $64.33 per barrelBrent North Sea Crude: DOWN 0.4 percent at $67.69 per barrelburs-bcp/ajb/js

India and Japan will “shape the Asian Century”, Prime Minister Narendra Modi said Friday, on a visit expected to secure billions of dollars in Japanese investment and an upgrade to security ties.”India and Japan’s partnership is strategic and smart. Powered by economic logic, we have turned shared interests into shared prosperity,” Modi told a business forum in Tokyo.”India is the springboard for Japanese businesses to the Global South.  We will shape the Asian Century for stability, growth, and prosperity,” Modi said.Modi’s two-day visit — a stopover before going to China — will see Japan unveil 10 trillion yen ($68 billion) in investments over the next 10 years, according to media reports.Bilateral trade is currently worth over $20 billion annually, heavily weighted in Japan’s favour.”Japan and India are strategic partners who share common values such as freedom, democracy, rule of law, having cherished friendship and trust over many years,” Japanese Prime Minister Shigeru Isbiba said.”Our economic relationship is expanding rapidly as Japan’s technology and India’s talented human resources and its huge market are complementing each other,” Ishiba told the forum.Both countries have been hit by tariffs imposed by US President Donald Trump, with levies of 50 percent on many Indian imports into the United States taking effect this week.Japan’s vital auto sector still faces 25 percent tariffs as a July trade deal cutting them — as well as additional “reciprocal” levies — is yet to come into force. Modi and Ishiba were expected to announce that the number of Indians with specialised skills working or studying in Japan — which is beset by labour shortages — will double to 50,000 over the next five years, reports said.The investments will target fields including artificial intelligence, semiconductors and securing access to critical minerals, with Modi and Ishiba set to tour a chip facility on Saturday.They will also visit a factory making “shinkansen” bullet trains with a view to Japan assisting in a planned 7,000-kilometre (4,350-mile) high-speed rail network by the centenary of Indian independence in 2047.A joint project aimed at building a first high-speed link between the western Indian cities of Mumbai and Ahmedabad has been plagued for years with delays and cost overruns.India and Japan, members of the Quad alliance with the United States and Australia seen as a bulwark against China, were also expected to upgrade their 2008 declaration on security cooperation.After Japan, Modi was due at a Shanghai Cooperation Organisation summit in China on Sunday and Monday hosted by President Xi Jinping and also attended by Russian leader Vladimir Putin.Modi’s visit is his first to China since 2018.The two most populous nations are intense rivals competing for influence across South Asia and fought a deadly border clash in 2020.A thaw began last October when Modi met with Xi for the first time in five years at a summit in Russia.

Markets in Asia were mixed on Friday following recent strong gains and after the Dow and the S&P 500 hit new records, although European stocks retreated.Modest gains on Wall Street came after an upward revision to US GDP for the second quarter and bumper results from AI chip giant Nvidia.The upward GDP hike to 3.3 percent from 3.0 percent mainly reflected improvements in investment and consumer spending.”After the initial release, there were concerns that the domestic (US) economy was slowing quite sharply,” said Richard Flax at Moneyfarm. “But these latest data suggest that the economy is a bit stronger than initially feared.” Attention is now on Friday’s release of a key US inflation reading and the implications for the Federal Reserve’s interest rate outlook.The Paris stock market extended its recovery Thursday after tumbling early in the week on fears that France’s minority government could be toppled, as it struggles to find around $51 billion in savings.But London, Paris and Frankfurt retreated during early trading Friday.In Asia, Japan’s Nikkei and Seoul ended down while Shanghai advanced.Hong Kong crept higher ahead of results from tech titan Alibaba and electric car giant BYD. Oil prices dipped.Japanese industrial production fell by 1.6 percent month-on-month, while vehicle output plunged 6.7 percent.”That fall echoes the big drop in motor vehicle exports last month and suggests that US tariffs are starting to bite,” said Marcel Thieliant at Capital Economics.On Thursday, Japan’s tariff envoy, who was seeking to finalise a trade deal struck in July, abruptly cancelled a visit to Washington.- Key figures at around 0715 GMT -Tokyo – Nikkei 225: DOWN 0.3 percent at 42,718.47 (close)Hong Kong – Hang Seng Index: UP 0.8 percent at 25,189.34Shanghai – Composite: UP 0.4 percent at 3,857.93 (close)London – FTSE 100: DOWN 0.1 percent at 9,210.71 Euro/dollar: DOWN at 1.1664 from $1.1680 on ThursdayPound/dollar: DOWN at $1.3485 at from $1.3508 Dollar/yen: UP at 147.13 yen from 146.97 yen Euro/pound: UP at 86.50 at from 86.46 pence  West Texas Intermediate: DOWN 0.7 percent at $64.17 per barrelBrent North Sea Crude: DOWN 0.7 percent at $68.17 per barrelNew York – Dow: UP 0.16 percent at 45,636.90 points (close)New York – S&P 500: UP 0.32 percent at 6,501.86 (close)

Japan’s defence ministry is aiming for a major boost to its drone arsenal as part of another record spending request made Friday to deal with a “severely intensifying security environment”.Japan in recent years has been shedding its strict pacifist stance, moving to obtain “counterstrike” capabilities and doubling military spending to two percent of GDP.The defence ministry’s new budget request made on Friday for the coming fiscal year starting April 1, seen by AFP, is for 8.8 trillion yen ($59.9 billion).It surpasses the world’s fourth-largest economy’s previous record of 8.7 trillion yen, secured for this fiscal year ending in March 2026.Eighty years after World War II and the atomic bombings of Hiroshima and Nagasaki, Japan’s constitution still limits its military capacity to ostensibly defensive measures.But the new budget increase reflects the “severely intensifying security environment” around Japan, a defence ministry official told reporters in Tokyo on condition of anonymity.- Drones -The budget request asks to roughly triple spending on various types of unmanned vehicles to 313 billion yen.The ongoing war in Ukraine since Russia’s invasion in 2022 has highlighted the destructive power of drones and their growing role in modern warfare.Under the plan unveiled Friday, Tokyo is eyeing the use of drones to strengthen a planned coastal defence system it dubs “SHIELD”. In the worst-case scenario where Japan’s long-distance “standoff” missiles are bypassed by enemy troops, it is hoped SHIELD — Synchronised, Hybrid, Integrated and Enhanced Littoral Defence — could block any invasion nearer land, the official said.Japan is hoping that SHIELD will be completed by March 2028, with no details yet on which part of Japan’s coastline it will be linked to.”There’s a need to catch up with significant changes in the way militaries fight,” the defence official said.During a visit to Istanbul this month, Defence Minister Gen Nakatani agreed to explore the possible purchase of Turkish drones, Japanese media reported.Japan, which hosts some 54,000 US military personnel, is also coming under pressure from US President Donald Trump’s administration to beef up its defence capabilities.Washington and Tokyo are moving to make their forces more nimble in response to threats such as a Chinese invasion of Taiwan. Japan is also looking to boost arms exports, and this month won a $6 billion order from the Australian navy for 11 frigates.The budget request will now be vetted by the finance ministry, with the central government expected in the coming months to draw up a comprehensive budget proposal that is anticipated to be a record high.The Yomiuri Shimbun daily said the overall budget request is expected to be more than 122 trillion yen, a sharp increase from 117.6 trillion yen for the current year.Much of the money will cover elderly care and managing Japan’s colossal debts, which are among the biggest as a proportion of economic output among advanced economies.

Far above Kabul, the cash-strapped Taliban government has located a potentially lucrative revenue stream: Afghanistan’s airspace. As Israel and Iran’s exchange of missiles threw flight paths into disarray this year, the skies above Afghanistan offered carriers a less turbulent and faster route to ply — for a flat $700 overflight fee, according to industry insiders.The US aviation authority eased restrictions on the country’s airspace and paved the way for commercial flyovers in 2023, two years after the Taliban takeover. Airspace that had long been avoided — as the country endured four decades of war and shifting powerbrokers — suddenly became a viable option, allowing carriers to abbreviate routes and save on fuel costs.But it was not until the 12-day war between Iran and Israel in June that the route really gained traction, allowing the Taliban government to potentially rake in millions.  Faced with shuttered airspace over Iran and Iraq, and unpredictable openings and closures across the Middle East, airlines saw reason to divert course and found refuge over Afghanistan. While missiles clogged the neighbouring airspace, “the risk of flying over Afghanistan (was) virtually zero”, said France-based aerospace and defence consultant Xavier Tytelman. “It’s like flying over the sea.” May’s average of 50 planes cutting through Afghanistan each day skyrocketed to around 280 after June 13, when the Iran-Israel war erupted, data from tracking website Flightradar24 showed. Since then, in any given day, more than 200 planes often traverse Afghanistan — equivalent to roughly $4.2 million a month, though this figure is difficult to verify as the authorities do not publish budgets and have declined to comment.- Opaque transactions -While not a princely sum in terms of government revenue, the overflight fees offer a much-needed boost to Afghanistan’s coffers as it contends with a massive humanitarian crisis and a war-battered economy. Around 85 percent of Afghanistan’s population live on less than one dollar a day, according to the UN, and nearly one in four Afghans aged 15 to 29 are unemployed.The World Bank says overflight fees contributed to modest growth in Afghanistan’s economy in 2024, before the route began attracting carriers needing to bypass Iran.International airlines returned to Afghanistan starting in 2023, with Turkish Airlines, flydubai and Air Arabia making almost daily flights from Afghan airports.Others, such as Singapore Airlines, Air France, Aeroflot, Air Canada and Swiss Air, fly over Kabul, Mazar-i-Sharif or Kandahar — as practicality outweighs the risks, which remain.Consultant Tytelman warned that Afghanistan is still a less than ideal place to land in case of technical or medical emergencies, with potential complications due to a lack of spare parts and dilapidated health care services. Yet he noted, “planes are landing in Kabul every day”. Airlines were loath to discuss the mechanics of paying the Taliban government, which remains isolated by many countries in part over its restrictions on women.Multiple companies contacted by AFP said they do not provide overflight payment information.  Afghanistan’s aviation officials did not respond to multiple requests for comment, and would not confirm the overflight fees or the process by which they are paid.”Companies are not formally prohibited from trading with Afghanistan, as US sanctions target only certain Taliban officials,” a World Bank expert told AFP, speaking on condition of anonymity. However, “some abstain out of fear of being associated with the ruling power”, he added.  Industry insiders speaking on condition of anonymity said the $700 overflight fees are paid to third-party intermediaries, such as the United Arab Emirates-based GAAC Holding, which manages airports in Afghanistan, or overflight brokers.Some airlines may now even pay directly, as more countries develop diplomatic ties with the Taliban government. – Reinforcing authority -Only Russia has officially recognised the Taliban authorities, who are hamstrung by frozen assets, sanctions on individuals and a lack of trust in the banking sector. Against such economic headwinds, the airspace revenue stream “is helpful for the cash-strapped current administration”, said Sulaiman Bin Shah, former deputy minister of industry and commerce in the ousted government and founder of the Catalysts Afghanistan consultancy. But Bin Shah emphasised the overflight traffic offers more than just financial benefits, as it increases normalisation of the Taliban authorities. “It reinforces their grip on state functions and supports the image of a functioning government, even without formal international recognition,” he said. “So while the income itself is not transformative, it plays a meaningful role in the administration’s economic narrative and political positioning.”

India once united US policymakers like few issues. For nearly three decades, US presidents of both parties courted New Delhi as an emerging ally, politely overlooking disagreements for the sake of larger goals.Donald Trump has abruptly changed that.The US administration on Wednesday slapped 50 percent tariffs on many Indian products as Trump seeks to punish India for buying oil from Russia.India was a Cold War partner of Moscow but since the 1990s US leaders have hoped for a joint front with fellow democracy India in the face of the rise of China, seen by Washington as its top long-term adversary.In striking timing, Indian Prime Minister Narendra Modi heads to China this weekend, the latest meeting between the world’s two most populous nations as they explore areas of common ground.Trump has accused India of fueling Moscow’s deadly attacks on Ukraine by purchasing Russian oil. Trump trade advisor Peter Navarro even called Ukraine “Modi’s war” in a Bloomberg TV interview Wednesday.Yet Trump has refrained from tougher US sanctions on Russia itself, saying he still hopes for a negotiated settlement despite wide pessimism.”This is not just about tariffs, not just about Russia, not just about oil,” said Tanvi Madan of the Brookings Institution.”There seems to be something broader going on here — personal on Trump’s side, piqued as he may be at India,” she said.”And then on the Indian side, for Modi, it becomes a political issue.”- Faltering bromance -Trump and Modi, both right-wing populists, appeared to forge a strong bond during Trump’s first term.In 2020, Trump rejoiced as Modi invited him to inaugurate the world’s largest cricket stadium in front more than 120,000 people.But Trump has since appeared irritated as he seeks credit for what he said was Nobel Prize-worthy diplomacy between Pakistan and India, which struck its neighbor in May in response to a massacre of Indian civilians in divided Kashmir.India, which adamantly rejects any third-party mediation on Kashmir, has since given the cold shoulder to Trump as he muses of brokering between New Delhi and Islamabad.Pakistan by contrast has embraced Trump’s attention, with its powerful army chief meeting him at the White House.US policymakers have long skirted around India’s sensitivities on Kashmir and sought to contain fallout from disagreements on other issues.Jake Sullivan, national security advisor under Trump’s predecessor Joe Biden, said that Trump had broken a bipartisan consensus with his “massive trade offensive” against India.India is now thinking “I guess maybe we have to go show up in Beijing and sit with the Chinese because we’ve got to hedge against America,” Sullivan told news and opinion site The Bulwark.Madan said that for the Indian establishment, the tariffs contradicted US assurances that unlike China, Washington would not use “economic ties to coerce India.””If you’re India, even if you sort this particular issue out, you’re now saying, we used to see this increasing interaction with the US across many domains as an opportunity,” she said.”And now Trump has made us realize that we should also see that integration or dependence as a vulnerability.”- Chance for China -For China, Modi’s trip is an opportunity “to drive a wedge between India and the US,” said William Yang, an analyst at the International Crisis Group.”Beijing won’t miss the opportunity to present itself as a ‘reliable partner’ that is interested in deepening relations with New Delhi,” he said.But he noted that India and China still had fundamental differences, despite recent efforts to resolve a longstanding border dispute.China is the key partner and military supplier of Pakistan and has sought to ramp up influence in the Indian Ocean.Kriti Upadhyaya, a visiting fellow at the conservative Heritage Foundation, played down long-term consequences of the tariff rift, noting how much the US-India relationship has developed in recent years.”When you really like somebody, a friend who’s close to you, you’re always going to have more grievances with them,” she said.

Two of Wall Street’s major indexes closed at record highs Thursday, lifted by an upward revision to second-quarter US GDP data and strong earnings from AI chip giant Nvidia.The Dow Jones Industrial Average rose 0.16 percent to a record 45,636.90, while the broad-based S&P 500 Index gained 0.32 percent to 6,501.86, also a record. The Nasdaq Composite Index added 0.53 percent to 21,705.16.The United States saw its gross domestic product grow at an annualized rate of 3.3 percent in the second quarter, according to Thursday’s official update — higher than previously calculated and above market expectations. The initial GDP estimate published in late July showed annualized growth of 3.0 percent, while investors had expected a revision to only 3.1 percent.The upward revision mainly reflected improvements in investment and consumer spending, the Commerce Department said. Growth was also bolstered by a decline in US imports, which are subtracted from GDP calculations. This drop occurred as businesses pulled back on shipments after rushing to stock up ahead of President Donald Trump’s tariff hikes.Markets are anticipating a potential Federal Reserve rate cut at its September meeting, which could stimulate economic activity. The market “is waiting a little bit to get some more information feeding into Fed decisions,” including next week’s job numbers, Victoria Fernandez of Crossmark Global Investments told AFP.”After the initial release, there were concerns that the domestic economy was slowing quite sharply,” said Richard Flax, chief investment officer at Moneyfarm. “But these latest data suggest that the economy is a bit stronger than initially feared.”The focus now shifts to Friday’s release of a key inflation reading and its potential impact on the outlook for additional rate cuts.Despite the positive market sentiment, Nvidia shares fell 0.82 percent, adding to recent declines even after posting a profit of $26.4 billion on record revenue of $46.7 billion in the second quarter. Investors had keenly awaited Wednesday’s earnings update from the California-based firm, whose remarkable growth has driven strong gains for tech stocks in recent months.The earnings report comes amid market concerns over a potential spending bubble in the artificial intelligence sector that could hurt the chip giant’s prospects.In Europe, the Paris stock market extended its recovery after tumbling early in the week on fears that France’s minority government could be toppled. Prime Minister François Bayrou had proposed a confidence vote over his budget cuts. France’s borrowing costs have soared since the vote was called Monday, as the government struggles to find around 44 billion euros ($51 billion) in savings.- Key figures at around 2045 GMT -New York – Dow: UP 0.16 percent at 45,636.90 points New York – S&P 500: UP 0.32 percent at 6,501.86New York – Nasdaq: UP 0.53 percent to 21,705.16London – FTSE 100: DOWN 0.4 percent at 9,216.82 Paris – CAC 40: UP 0.2 percent at 7,762.60 Frankfurt – DAX: FLAT at 24,039.92Tokyo – Nikkei 225: UP 0.7 percent at 42,828.79 (close) Hong Kong – Hang Seng Index: DOWN 0.8 percent at 24,998.82 (close)Shanghai – Composite: UP 1.1 percent at 3,843.60 (close)Euro/dollar:  UP at $1.1680 from $1.1633 on WednesdayPound/dollar: UP at 1.3508 from $1.3496Dollar/yen:  DOWN at 146.97 from 147.51 yen Euro/pound: UP at 86.46 from 86.20 pence West Texas Intermediate: UP 0.70 percent at $64.60 per barrelBrent North Sea Crude: UP 0.84 percent at $68.62 per barrel