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Stock markets fell Tuesday as investors weighed the recent tech rally on Wall Street against growing fears of an AI bubble and concerns over the US interest-rate outlook.A flood of multi-billion-dollar investment into artificial intelligence has been a key driver of the surge in mostly technology equities across the globe this year, sending valuations to record highs.But there is increasing talk that tech-led gains may have gone too far and a painful correction could be on the way.”Wall Street CEOs have also put investors on notice for a correction in the next 1-2 years,” said Kathleen Brooks, research director at trading group XTB.”It seems like the investment community has taken heed of this message,” she added.Paris and Frankfurt stock markets shed more than one percent in midday trading Tuesday, while London slipped 0.7 percent.The British pound retreated against the dollar after finance minister Rachel Reeves hinted at tax rises in a pre-budget speech.That tracked a weak day in Asia, with Tokyo, Hong Kong and Shanghai stocks falling.Wall Street ended on a mixed note Monday, after tech stocks won a boost from ChatGPT-maker OpenAI signing a $38 billion deal with Amazon’s AWS cloud computing arm.”Some skeptics continued to raise their eyebrows, concerned by the circularity of these deals,” said Ipek Ozkardeskaya, senior analyst at Swissquote bank.Cautious remarks from US Federal Reserve officials did little to provide support for further buying after the central bank’s chief, Jerome Powell, indicated last week that a third rate cut this year was not definite.Data on Monday indicated some further weakness in the US economy, with a key gauge of activity in the manufacturing sector contracting more than expected and for an eighth straight month in October as demand and output weakened.On currency markets, India’s rupee rallied from close to a record low against the dollar after the Reserve Bank of India stepped in with support, according to Bloomberg News. The unit briefly jumped to 88.3925 against the greenback, after sitting close to its all-time low on Monday.India’s rupee has come under pressure of late owing to worries about exports as New Delhi struggles to strike a trade deal with the United States.In company news, shares in British energy giant BP were down 0.4 percent after a drop in oil prices on Tuesday overshadowed its strong earnings report.Crude prices shed around 1.5 percent as the market anticipated oversupply.- Key figures at around 1115 GMT -London – FTSE 100: DOWN 0.7 percent at 9,630.90 pointsParis – CAC 40: DOWN 1.2 percent at 8,009.26Frankfurt – DAX: DOWN 1.4 percent at 23,798.38Tokyo – Nikkei 225: DOWN 1.7 percent at 51,497.20 (close)Hong Kong – Hang Seng Index: DOWN 0.8 percent at 25,952.40 (close)Shanghai – Composite: DOWN 0.4 percent at 3,960.19 (close)New York – Dow: DOWN 0.5 percent at 47,336.68 (close)Euro/dollar: DOWN at $1.1504 from $1.1518 on MondayPound/dollar: DOWN at $1.3071 from $1.3138Dollar/yen: DOWN at 153.48 yen from 154.20 yenEuro/pound: UP at 88.02 pence from 87.67 penceWest Texas Intermediate: DOWN 1.6 percent at $60.07 per barrelBrent North Sea Crude: DOWN 1.4 percent at $64.00 per barrel

Asian e-commerce giant Shein Tuesday pledged to “cooperate fully” with French judicial authorities after an uproar over it selling childlike sex dolls, and said it was prepared to disclose the names of people who bought them.The controversy comes as the ultra-fast fashion giant is set to open its first bricks and mortar store in the world, in the prestigious BHV department store in central Paris on Wednesday.”We will cooperate fully with the judicial authorities,” Shein’s spokesman in France, Quentin Ruffat, told RMC radio, adding the company was prepared to share the names of those who have bought such dolls.”We will be completely transparent with the authorities,” he said.”We will put the necessary safeguards in place to ensure that this does not happen again,” Ruffat added.The Paris prosecutor’s office said it had opened investigations against Shein, and also rival online retailers AliExpress, Temu and Wish, over the sale of sex dolls.The probes were for distributing “messages that are violent, pornographic or improper, and accessible to minors”, the office told AFP.The investigations were launched after France’s anti-fraud unit reported on Saturday that Shein, a Singapore-based company which was originally founded in China, was selling childlike sex dolls.French media published a photo of one of the dolls sold on the platform, accompanied by an explicitly sexual caption.The pictured doll measured around 80 centimetres (30 inches) in height and held a teddy bear.Ruffat described what had happened as “serious, unacceptable, intolerable.”He chalked up the sale of the dolls to “a malfunction in our processes and governance”.- ‘Who can stop it?’ -On Monday, Shein announced it was imposing a “total ban on sex-doll-type products” and had deleted all listings and images linked to them.  Shein’s meteoric rise has been a bane for traditional retail fashion companies and, even before the uproar over the dolls, the arrival of Shein in the fashion capital had sparked a controversy.Critics fear that Shein will further hurt stores in France that have had to lay off staff or close.”Shein in France. Who can stop it?” left-leaning French daily Liberation said on its front page.Frederic Merlin, the 34-year-old director of the company that owns BHV, has been criticised for partnering up with Shein, which has been accused of unfair competition, environmental pollution and poor working conditions.Merlin admitted on Tuesday that he considered pulling the plug on the partnership with Shein after the latest uproar.”It’s despicable,” he told broadcaster RTL.”I find it sickening to know that we can freely sell this kind of stuff on the internet,” Merlin added.But he said he had reconsidered, saying Shein’s stance and readiness to cooperate with the French authorities “convinced me to continue”.He said he was confident about the Shein products that will be sold at the department store, and denounced a “general hypocrisy” surrounding Shein and its “25 million French customers”.He expressed hope that the Asian giant would help increase footfall at the department store.- ‘Shein has to pay’ -On Monday, France’s high commissioner for childhood, Sarah El Hairy, denounced the dolls which she called “paedophile objects that predators unfortunately sometimes use to practise before moving on to abusing children.”Ruffat said he and “the entire Shein brand” shared her concerns.”We will be delighted to discuss these issues with her, these issues of paedophile crime, which are too serious to be ignored,” he said.Finance Minister Roland Lescure had warned he would move to ban the company from the French market if the items returned online.On Monday, an association fighting to protect children from all forms of violence staged a protest in front of the department store.”Shame on Shein,” one of the signs read.”Shein has to pay, politically speaking,” said Arnaud Gallais, co-founder and president of the Mouv’Enfants association.

Asian e-commerce giant Shein Tuesday pledged to “cooperate fully” with French judicial authorities after an uproar over it selling childlike sex dolls, and said it was prepared to disclose the names of people who bought them.The controversy comes as the online fast-fashion seller is set to open its first bricks and mortar store in the world in the prestigious BHV department store in central Paris.”We will cooperate fully with the judicial authorities,” Shein’s spokesman in France, Quentin Ruffat, told RMC radio, adding the company was prepared to share names of those who have bought such dolls.”We will be completely transparent with the authorities. If they ask us to do so, we will comply,” he said.”We will put the necessary safeguards in place to ensure that this does not happen again,” Ruffat said.The Paris prosecutor’s office said it had opened investigations against Shein, and also rival online retailers AliExpress, Temu and Wish, over the sale of sex dolls.The probes were for distributing “messages that are violent, pornographic or improper, and accessible to minors”, the office told AFP.The investigations were launched after France’s anti-fraud unit reported on Saturday that Shein was selling childlike sex dolls.French media published a photo of one of the dolls sold on the platform, accompanied by an explicitly sexual caption.The pictured doll measured around 80 centimetres (30 inches) in height and held a teddy bear.Ruffat described what had happened as “serious, unacceptable, intolerable.”He chalked up the sale of the dolls to “an internal malfunction, a malfunction in our processes and governance”.”We assessed the situation and responded quickly,” he added.- ‘Despicable’ -On Monday, Shein announced it was imposing a “total ban on sex-doll-type products” and had deleted all listings and images linked to them. The uproar comes as Shein prepares on Wednesday to open its first physical store in the world, inside the BHV Marais department store in central Paris.The move has sparked outrage in France. “Shein in France. Who can stop it?” left-leaning French daily Liberation said on its front page.Frederic Merlin, the 34-year-old director of the company that owns BHV, admitted on Tuesday that he considered pulling the plug on the partnership with Shein after the uproar.”It’s despicable, it’s indecent, it’s abject,” he told broadcaster RTL on Tuesday, referring to the sale of the dolls.”I find it sickening to know that we can freely sell this kind of stuff on the internet,” Merlin added.But he said he had reconsidered, saying Shein’s stance and readiness to cooperate with the French authorities “convinced me to continue”.On Monday, France’s high commissioner for childhood, Sarah El Hairy, denounced the dolls which she called “paedophile objects that predators unfortunately sometimes use to practise before moving on to abusing children.”Ruffat said he and “the entire Shein brand” shared her concerns.”We will be delighted to discuss these issues with her, these issues of paedophile crime, which are too serious to be ignored,” he said.Finance Minister Roland Lescure had warned he would move to ban the company from the French market if the items returned online.Shein, a Singapore-based company which was originally founded in China, has faced criticism over working conditions at its factories and the environmental impact of its ultra-fast fashion business model.

Asian markets fell Tuesday as investors assessed the latest tech rally on Wall Street amid worries a bubble is forming in the sector, while mixed signals from Federal Reserve officials fed uncertainty over its next interest rate move.A flood of multi-billion-dollar investment into artificial intelligence has been a key driver of the surge in mostly technology equities across the globe this year, sending valuations to record highs.The rally has been helped by easing trade tensions since US President Donald Trump’s April tariff bombshell and expectations that the Fed will continue lowering borrowing costs.There is also a fear of missing out, in turn pushing prices up further, but there is increasing talk that the gains may have gone too far — with most of them coming from the tech sector — and a painful correction could be on the way.ChatGPT-maker OpenAI signed a $38 billion deal with Amazon’s AWS cloud computing arm, marking its latest huge tie-up following agreements with Oracle, Broadcom, AMD and chip titan Nvidia.”Even after the tariff-induced swoon in April, global equities have tacked on $17 trillion in market value, with the rally increasingly bottlenecked into the same handful of tech titans,” wrote SPI Asset Management’s Stephen Innes.”It’s as if the entire market has narrowed to a single crowded corridor, the walls lined with AI logos and venture dreams. “Amazon’s move simply adds another rocket to the booster stack — and traders are cheering the ignition, not asking how much fuel remains.”Wall Street ended on a mixed note, with the tech-rich Nasdaq rising along with the S&P 500 but the Dow in the red.Asia struggled, with Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Singapore, Taipei, Mumbai and Bangkok falling, though there were gains in Wellington, Manila and Jakarta.London, Paris and Frankfurt dropped at the open.Remarks from Fed officials did little to provide support for further buying after boss Jerome Powell indicated last week that a third rate cut this year — after one in each of the past two meetings — was not definite.Governor Lisa Cook said she saw inflation remaining elevated in the coming year as tariffs bite, pointing out that some businesses had indicated they were running down inventories before passing on costs to consumers.”Looking ahead, policy is not on a predetermined path,” Cook said. “We are at a moment when risks to both sides of the dual mandate are elevated,” she added, referring to the bank’s target to support jobs while keeping rates at a level to put a cap on inflation. “Every meeting, including December’s, is a live meeting.”Meanwhile, Chicago Fed chief Austan Goolsbee said his main worry was inflation, while San Francisco boss Mary Daly was open to any options with regards to a cut in December. Governor Stephen Miran, a Trump nominee, wanted to see more cuts.”The divergence in opinions reinforces Fed Powell’s assessment that another fed funds rate in December is not a foregone conclusion, with the lack of data adding to the need to wait before making a decision (when driving in a fog, best to slow down),” wrote National Australia Bank’s Rodrigo Catril.Data on Monday indicated some further weakness in the US economy, with a key gauge of activity in the manufacturing sector contracting more than expected and for an eighth straight month in October as demand and output weakened.On currency markets, India’s rupee rallied from close to a record low against the dollar after the Reserve Bank of India stepped in with support, according to Bloomberg News. The unit briefly jumped to 88.3925 against the greenback, having sat around 88.80 on Monday, which was a whisker away from its all-time low of 88.8050 seen in September.The unit has come under pressure of late owing to worries about exports as New Delhi struggles to strike a trade deal with the United States.- Key figures at around 0820 GMT -Tokyo – Nikkei 225: DOWN 1.7 percent at 51,497.20 (close)Hong Kong – Hang Seng Index: DOWN 0.8 percent at 25,952.40 (close)Shanghai – Composite: DOWN 0.4 percent at 3,960.19 (close)London – FTSE 100: DOWN 0.7 percent at 9,633.74 Euro/dollar: UP at $1.1523 from $1.1518 on MondayPound/dollar: DOWN at $1.3108 from $1.3138Dollar/yen: DOWN at 153.51 yen from 154.20 yenEuro/pound: UP at 87.91 pence from 87.67 penceWest Texas Intermediate: DOWN 0.7 percent at $60.63 per barrelBrent North Sea Crude: DOWN 0.7 percent at $64.43 per barrelNew York – Dow: DOWN 0.5 percent at 47,336.68 (close)

Nintendo said Tuesday it aims to sell 19 million Switch 2 consoles within this financial year, up from its previous target 15 million for the smash-hit gadget.The Switch 2 became the world’s fastest-selling games console after launching in June to a frenzy of excitement from fans of “Super Mario” and other top titles.”The hardware has seen strong sales since its launch,” Nintendo said as it raised its annual net profit forecast to 350 billion yen ($2.3 billion) from 300 billion yen.Sales of the games “Mario Kart World” and “Donkey Kong Bananza” are growing steadily, the Japanese company said.”We will aim to keep the momentum of released titles and continuously introduce new titles to expand the platform’s user base,” it added.While Nintendo is diversifying into hit movies and theme parks, consoles remain at the core of its business.The original Switch soared in popularity during the pandemic with games such as “Animal Crossing” striking a chord during long lockdowns worldwide.The Switch 1 has sold 154 million units since its 2017 release, making it the third best-selling console of all time after Sony’s PlayStation 2 and the Nintendo DS.Nintendo said Tuesday it sold more than 10 million Switch 2 consoles in the first half of 2025-26.For the April to September period the company logged net profit of nearly 200 billion yen, up 83 percent year-on-year, forecasting record annual sales of 2.25 trillion yen.”The Switch 2’s demand will likely remain high, especially as the console ramps up sales in non-traditional markets such as China,” said Darang Candra, director for East Asia and Southeast Asia research at Niko Partners.”We remain cautious, however, about whether Switch 2 can replicate Switch 1’s 150-million-unit sales,” he told AFP ahead of Tuesday’s earnings release.”Switch 2’s long-term success will depend on Nintendo’s ability to sustain engagement with new titles and also penetrate emerging markets” such as in the Middle East and Asian countries apart from Japan, Candra added.Nintendo in September marked 40 years since the first “Super Mario Bros.” game — a colourful world of platforms, pipes and scowling enemies — was released.Market analysts at Jefferies noted that Nintendo’s brand was about to receive a “significant boost” when the red-capped Mario character features as a balloon in the Macy’s Thanksgiving Parade in New York City this year for the first time.The sequel to the megahit “Super Mario Bros. Movie” is also scheduled for release in April 2026.

South Korea will triple spending on artificial intelligence and make its biggest defence budget increase in six years, President Lee Jae Myung said Tuesday in his annual parliamentary budget speech.Lee said 10.1 trillion won ($7 billion) would go towards “a major transformation aimed at propelling South Korea into the ranks of the world’s top three AI powers” alongside the United States and China.”We will significantly expand investment to usher in the ‘AI era’,” he said, noting the amount was more than three times the current year’s AI-related budget.The proposal was made in a speech outlining his government’s spending plans for 2026.Overall, the budget plan totals 728 trillion won, an 8.1 percent increase from this year.Lee now needs parliament to pass the budget proposal, which is likely given his party’s majority.On the defence budget, the president said his government wants to see an 8.2 percent increase from this year to 66.3 trillion won.If passed, it will mark the highest defence spending increase since 2019.”We will overhaul conventional weapons systems into state-of-the-art systems suited for the AI era and swiftly transform our military into an elite, smart force,” Lee said.- AI infrastructure -Of next year’s AI budget, 2.6 trillion won “will be invested in introducing AI across industry, daily life and the public sector, while 7.5 trillion won will go towards talent development and infrastructure building”, Lee said.South Korea is home to two of the world’s leading memory chip makers, Samsung Electronics and SK hynix.The two tech giants manufacture chips essential for AI products and the power-hungry data centres that the fast-evolving industry relies on.Jensen Huang, the CEO of US chip titan Nvidia, announced last week plans to supply 260,000 of the firm’s most advanced chips to South Korea, with recipients including Samsung, SK Group and Hyundai Motor Group.On Lee’s drive to make South Korea one of the world’s top three AI powers, Huang described the goal as “ambitious” after the supply announcement on Friday.But, he said, “there’s no reason why Korea cannot achieve it — you have the technology, you have the software expertise and you also have a natural ability to build manufacturing plants”.The United States, a key military ally, stations about 28,500 troops in South Korea to help it fend off military threats from the North.Since taking office in June, Lee has vowed to “respect” North Korea’s political system and pursue dialogue without preconditions, in a sharp break with the policies of his hawkish predecessor.Lee noted on Tuesday that South Korea already spends “1.4 times North Korea’s annual GDP” on defence alone and is “ranked fifth in global military strength”. Seoul and Pyongyang technically remain at war as the 1950-53 Korean War ended in armistice, not a peace treaty.

Recent raids on one of Myanmar’s most notorious internet scam hubs sparked a recruitment rush as fleeing workers scrambled to enlist at nearby fraud factories, experts and insiders told AFP.Online scam hubs have mushroomed across Southeast Asia, draining unsuspecting victims of billions of dollars annually in elaborate romance and crypto cons.Many workers are trafficked into the internet sweatshops, analysts say, but others go willingly to secure attractive salaries.Late October raids roiled Myanmar fraud factory KK Park, sending more than 1,500 people fleeing over the border to Thailand — but many stayed behind to pursue new opportunities in the black market.A Chinese voluntary scam worker told AFP that a few hundred people who left KK Park arrived at his own compound three kilometres (two miles) away on October 23 — lured by monthly salaries of up to $1,400. The man spoke on condition of anonymity for security reasons, but shared with AFP a live location on a messaging app showing he was in Myanmar, near the Thai border. “Some people will be picked up by unscrupulous bosses, while others will be picked up by good companies,” he said. “It all depends on your luck.”Jason Tower, senior expert at the Global Initiative against Transnational Organized Crime, told AFP many KK Park scammers have simply been “re-recruited” by other gangs.”There are some people looking for a new location to engage in scamming from,” he said. “They might see this as a job.”- ‘Our chance to escape’ -Webs of anonymous crypto payments and chronic under-reporting by embarrassed victims make losses to scam centres hard to quantify. But victims in Southeast and East Asia alone were conned out of up to $37 billion in 2023, according to a UN report, which said global losses were likely “much larger”.War-torn Myanmar’s loosely governed border regions have proven particularly fertile ground for the hubs.The embattled junta — which seized power in a 2021 coup — has been accused of turning a blind eye to scam centres enriching its domestic militia allies.But it has also faced pressure to curb the black market by its international backer China, galled at hubs recruiting as well as targeting its citizens.Last month, the junta said its troops had occupied around 200 buildings in KK Park and found more than 2,000 scammers.Analysts say the raid was likely limited and heavily choreographed — designed to vent pressure to take action without too badly denting profits.But it nonetheless prompted an exodus of 1,500 people from 28 nationalities into Thailand, according to provincial Thai authorities.Among them were around 500 Indian nationals and around 200 Filipinos.Authorities face the daunting task of discerning trafficking victims from willing scammers.Speaking to AFP on condition of anonymity, one Filipino man described fleeing KK Park on October 22 with around 30 compatriots as a pro-junta militia arrived to aid the crackdown.”Everyone ran outside,” he said. “This was our chance to escape.”Grabbing what few possessions he could, the man fled the compound he says he was trafficked into and crossed by boat to western Thailand.- Sold for scamming -With one expert estimating around 20,000 people had been working in KK Park — the vast majority believed to be Chinese nationals — those who fled to Thailand likely made up less than 10 percent.But those who stayed behind are not necessarily willing participants.After the KK Park exodus, the Chinese scammer at the nearby compound told AFP local armed groups scrambled to cash in — with unemployed scammers “sold” to other operations for up to $70,000.Whether they are willing workers being headhunted or human trafficking victims is unclear.The scammer who spoke to AFP reported hearing “booms every evening” after the raids, but dismissed it as “all for show” rather than a meaningful crackdown by Myanmar authorities.And with the continuing flow of scam workers — willing or coerced — rights advocates say the problem can only be solved by targeting the Chinese bosses running the show.”(They) must be arrested, prosecuted, and have all their assets seized,” Jay Kritiya from the Civil Society Network for Human Trafficking Victims Assistance told AFP.”That’s the real crackdown.”

Asian markets fluctuated Tuesday as investors assessed the latest tech rally on Wall Street amid worries a bubble is forming in the sector, while mixed signals from Federal Reserve officials fed uncertainty over its next interest rate move.A flood of multi-billion-dollar investment into artificial intelligence has been a key driver of the surge in mostly technology equities across the globe this year, sending valuations to record highs.The rally has been helped by easing trade tensions since US President Donald Trump’s April tariff bombshell and expectations that the Fed will continue lowering borrowing costsThere is also a fear of missing out, in turn pushing prices up further, but there is increasing talk that the gains may have gone too far — with most of the gains coming from the tech sector — and a painful correction could be on the way.ChatGPT-maker OpenAI signed a $38 billion deal with Amazon’s AWS cloud computing arm, marking its latest huge tie-up following agreements with Oracle, Broadcom, AMD and chip titan Nvidia.”Even after the tariff-induced swoon in April, global equities have tacked on $17 trillion in market value, with the rally increasingly bottlenecked into the same handful of tech titans,” wrote SPI Asset Management’s Stephen Innes.”It’s as if the entire market has narrowed to a single crowded corridor, the walls lined with AI logos and venture dreams. “Amazon’s move simply adds another rocket to the booster stack — and traders are cheering the ignition, not asking how much fuel remains.”Wall Street ended on a mixed note, with the tech-rich Nasdaq rising along with the S&P 500 but the Dow in the red.Asia struggled to extend Monday’s advances.Hong Kong rose with Wellington, Manila and Jakarta but Tokyo, Sydney, Singapore, Seoul and Taipei edged down with Shanghai flat.Remarks from Fed officials did little to provide support for further buying after boss Jerome Powell indicated last week that a third rate cut this year — after one in each of the past two meetings — was not definite.Governor Lisa Cook said she saw inflation remaining elevated in the coming year as tariffs bite, pointing out that some businesses had indicated they were running down inventories before passing on costs to consumers.”Looking ahead, policy is not on a predetermined path,” Cook said. “We are at a moment when risks to both sides of the dual mandate are elevated,” she added, referring to the bank’s target to support jobs while keeping rates at a level to put a cap on inflation. “Every meeting, including December’s, is a live meeting.”Meanwhile, Chicago Fed chief Austan Goolsbee said his main worry was inflation, while San Francisco boss Mary Daly was open to any options with regards to a cut in December. Governor Stephen Miran, a Trump nominee, wanted to see more cuts.”The divergence in opinions reinforces Fed Powell’s assessment that another fed funds rate in December is not a foregone conclusion, with the lack of data adding to the need to wait before making a decision (when driving in a fog, best to slow down),” wrote National Australia Bank’s Rodrigo Catril.Data on Monday indicated some further weakness in the US economy, with a key gauge of activity in the manufacturing sector contracting more than expected and for an eighth straight month in October as demand and output weakened.- Key figures at around 0230 GMT -Tokyo – Nikkei 225: DOWN 0.1 percent at 52,361.14 (break)Hong Kong – Hang Seng Index: UP 0.2 percent at 26,207.16Shanghai – Composite: FLAT at 3796.80Euro/dollar: DOWN at $1.1506 from $1.1518 on MondayPound/dollar: DOWN at $1.3120 from $1.3138Dollar/yen: UP at 154.31 yen from 154.20 yenEuro/pound: UP at 87.70 pence from 87.67 penceWest Texas Intermediate: DOWN 0.2 percent at $60.93 per barrelBrent North Sea Crude: DOWN 0.2 percent at $64.76 per barrelNew York – Dow: DOWN 0.5 percent at 47,336.68 (close)London – FTSE 100: DOWN 0.2 percent at 9,701.37 (close)

Starbucks announced Monday it will sell a controlling stake in its Chinese retail operations to investment firm Boyu Capital in a deal valuing the business at around $4 billion.Under the agreement, Boyu will hold up to 60 percent of a new joint venture operating 8,000 Starbucks stores across China, while the Seattle-based company retains a 40 percent stake and continues to own the brand and intellectual property.The partnership marks a strategic shift for Starbucks after more than 26 years in China, combining the global coffee chain’s brand recognition with Boyu’s local market expertise to expand into smaller cities and new regions.China represents Starbucks’s second biggest market globally, though the company has faced increasing competition from local coffee chains like Luckin coffee that has won over customers with lower prices. Starbucks reported last week that its latest quarterly same-store sales in China increased by two percent, fueled by an increase in traffic, but added that average spending per ticket had dropped.The company said it expects the total value of its China retail business to exceed $13 billion, including proceeds from the sale, its retained interest, and future licensing fees over the next decade.”Boyu’s deep local knowledge and expertise will help accelerate our growth in China, especially as we expand into smaller cities and new regions,” said Starbucks CEO Brian Niccol.The companies said they aim to grow the store count to as many as 20,000 locations over time, with the business continuing to be headquartered in Shanghai.The deal is expected to close in the second quarter of fiscal year 2026, pending regulatory approvals.

Global stock markets were mixed Monday with the Nasdaq rising and the Dow retreating as traders digested major AI deals boosting the tech sector.Trading on the first business day in November began on the front foot after an upbeat end to October that saw an easing in China-US tensions, a cut to US interest rates and healthy earnings from market darlings including technology giant Amazon. “Tech and AI remain a huge theme for investors as we move into the final months of the year,” said Kathleen Brooks, research director at trading group XTB.However, early gains in London and Paris faded while US indices had a mixed day.Data showed economic activity in the US manufacturing sector contracted at a faster rate in October, when analysts had been expecting it to stabilize or even expand.Nevertheless the tech-heavy Nasdaq Composite still pushed 0.5 percent higher thanks to blockbuster tech deals.Shares in Amazon jumped 4.0 percent after ChatGPT-maker OpenAI signed a $38 billion deal with Amazon’s AWS cloud computing arm.The deal will give OpenAI, which is partly owned by AWS’s arch-rival Microsoft, access to computing resources including hundreds of thousands of state-of-the-art Nvidia GPU chips, the crucial component of the generative artificial intelligence revolution.Microsoft announced $15.2 billion in investments in artificial intelligence and cloud computing in the United Arab Emirates.The deal sent Nvidia shares up 2.2 percent on hopes it could see access for its most advanced chips expand to more markets as the Trump administration allowed the supply of GPU chips to the UAE.Shares in Nvidia are up over 50 percent since the start of the year.Shares in Microsoft slipped 0.2 percent.”A degree of tiredness is creeping into Wall Street’s mood despite the strong performance thus far in earnings season,” and blockbuster AI deals, said Chris Beauchamp, chief market analyst at investing and trading platform IG.In Europe, Frankfurt managed to end the day in the green, with sentiment boosted by the government’s intention to push forward next year with subsidized electricity for heavy industry.Shares in European carmakers raced higher after China said on Saturday it would exempt some Nexperia chips from an export ban that was imposed over a row with Dutch authorities.Anxiety over chip shortages began when the Netherlands invoked a Cold War-era law in late September to effectively take control of Nexperia, whose parent company Wingtech is backed by the Chinese government.Shares in German automaker Volkswagen gained two percent, while rival Mercedes-Benz rose 1.8 percent.Shares in global automaker Stellantis, which has European brands Peugeot, Fiat and Citroen in its stable, rose by 0.6 percent in Paris.Shares in Ryanair climbed 4.7 percent after the no-frills airline announced a 20-percent gain in quarterly profit on the back of increased ticket prices.Kenvue surged 12.3 percent after the Tylenol-maker reached a $48.7 billion deal to be acquired by US consumer goods giant Kimberly-Clark. Kimberly-Clark fell 14.6 percent.In Asia, Seoul piled on 2.8 percent, reaching a fresh record high, as investors cheered a thawing of ties between South Korea and China.Tokyo was closed for a holiday.- Key figures at around 2120 GMT -New York – Dow: DOWN 0.5 percent at 47,336.68 (close)New York – S&P 500: UP 0.2 percent at 6,851.97 (close)New York – Nasdaq Composite: UP 0.5 percent at 23,834.72 (close)London – FTSE 100: DOWN 0.2 percent at 9,701.37 (close)Paris – CAC 40: DOWN 0.1 percent at 8,109.79 (close)Frankfurt – DAX: UP 0.7 percent at 24,132.41 (close)Hong Kong – Hang Seng Index: UP 1.0 percent at 26,158.36 (close)Shanghai – Composite: UP 0.6 percent at 3,976.52 (close)Tokyo – Nikkei 225: Closed for a holidayEuro/dollar: DOWN at $1.1518 from $1.1537 on FridayPound/dollar: DOWN at $1.3138 from $1.3152Dollar/yen: UP at 154.20 yen from 153.99 yenEuro/pound: DOWN at 87.67 pence from 87.72 penceBrent North Sea Crude: UP 0.2 percent at $64.89 per barrelWest Texas Intermediate: UP 0.1 percent at $61.05 per barrelburs-jmb/dw