Good morning. Indonesia and the US reach a trade agreement. SpaceX is working on a new program to develop commercial products in orbit. And Hong Kong’s in high spirits as Bar Leone tops the Asia ranking, again. Listen to the day’s top stories.
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Donald Trump touted a deal withIndonesia that imposes a 19% tariff on its goods—while America gets off scot-free. “We will have full access into Indonesia,” the president said, adding that a pact with India will work “along that same line.” As part of the agreement, Indonesia will buy 50 Boeing jets and purchase a combined $19.5 billion worth of agricultural products and US energy, he later posted on social media.
A US-China deal is also making headway, according to Scott Bessent who said talks between the world’s largest economies are in a “very good place” ahead of an expected meeting in coming weeks. “I tell market participants not to worry about Aug. 12,” the Treasury secretary told Bloomberg, referring to the end of a 90-day reprieve announced in May.
Relatively tame US inflation data failed to ease Wall Street worries about the impact of tariffs, with initial rallies in stocks and bonds sputtering on bets that the Federal Reserve will keep rates on hold for now. Bitcoin pulled back as traders cashed in on a record-breaking rally that saw the cryptocurrency surge above $120,000.
Chipmakers are all systems go. Nvidia and Advanced Micro Devices plan to resume sales of some AI chips in China after securing Washington’s assurances that such shipments would be approved. The green-light marks a major reversal from the Trump administration’s earlier measures designed to limit Beijing’s AI ambitions.
Uber and Baidu launched a multiyear partnership to roll out robotaxis in several markets outside of the US and mainland China. Baidu’s autonomous vehicles will be listed on the ride-sharing app in Asia and the Middle East later this year, with Europe and Oceania slated for the future.
Deep Dive: SpaceX’s New Frontier
A Falcon Heavy rocket launches in Florida in June, 2024. Photographer: Miguel J. Rodriguez Carrillo/AFP via Getty
Houston, we have a prescription. Elon Musk’s startup is said to be working on a program to develop commercial products in orbit. The plan, dubbed Starfall, would allow companies to harness the unique conditions of space, which can provide a new environment for manufacturing goods from semiconductors to drugs.
How it works: SpaceX’s Starship rocket would bring products like pharmaceutical components to space in small, uncrewed capsules. They’d then spend time in orbit —where higher levels of radiation and micro-gravity may aid research and development—before returning to Earth.
It may not work. Success relies on the operational ability of Starship, which is less than certain after a string of explosive failures over its last several test flights. If all goes well, the endeavor may position the company as a key leader in space-based R&D of commercial goods.
Defense applications are possible too, people familiar said. SpaceX is working in conjunction with the military on the program but, for now, it’s unclear how the initiative fits into an existing SpaceX contract with the US Department of Defense.
