US August Non-Farm Payrolls Disappoint; India Continues Russian Oil Imports Despite US Tariff
Key Takeaways
- US August non-farm payrolls disappoint; unemployment rises to 4.3%, fueling Fed rate cut speculation.
- India continues buying Russian oil despite US 50% tariff, citing economic benefits.
- U.S. Treasury Secretary Bessent calls for a review of the Federal Reserve's policies.
- Bank of America anticipates two cautious Fed rate cuts after weak payroll data.
- Rising bond yields make government borrowing unaffordable in India, says Finance Minister.
Top Stories
US August non-farm payrolls disappoint; unemployment rises to 4.3%.
On September 5, 2025, US August non-farm payrolls increased by only 22,000, far below expectations, and the unemployment rate rose to 4.3%. This weak jobs report fuels speculation of a Fed rate cut.
India continues Russian oil imports despite US 50% tariff.
On September 5, 2025, India announced it would continue buying Russian oil despite a 50% US tariff, citing economic benefits and its status as the largest buyer of Russian seaborne crude.
U.S. Treasury Secretary Bessent calls for review of Federal Reserve.
On September 6, 2025, U.S. Treasury Secretary Scott Bessent advocated for a review of the Federal Reserve, questioning its policies and interest rate authority.
Bank of America anticipates two cautious Fed rate cuts after weak payroll.
On September 5, 2025, Bank of America revised its economic outlook, now expecting two cautious interest rate cuts by the Federal Reserve in September and December, following a weak August jobs report.
India: Rising bond yields make government borrowing unaffordable.
On September 5, 2025, India's Finance Minister stated that rising bond yields, which spiked by 19 basis points in August, have made government borrowing unaffordable.
Financial Analysis
Fed rate cuts may signal weakening economy, historical data suggests.
The Federal Reserve is expected to cut interest rates on September 17, 2025, but historical data suggests such aggressive cuts often coincide with a weakening business climate and slower job growth.
Canada and US aggressively tap debt markets; $220B and $2T issued.
On September 5, 2025, economists noted that Canada issued approximately $220 billion in gross bond supply from April to August, while the U.S. issued nearly US$2 trillion, highlighting aggressive debt market activity.
Market Insights
A-share market: 108 stocks hit limit up, Shanghai Composite exceeds 3800.
On September 5, 2025, the A-share market saw 108 stocks hit their daily upper limit, with the Shanghai Composite Index surpassing 3800 points, led by gains in the ChiNext index.
Canada's job market sheds 65,500 jobs in August; unemployment rises.
On September 5, 2025, Canada's job market experienced an unexpected downturn, shedding 65,500 jobs in August, causing the unemployment rate to rise to 7.1%.
Nvidia's stock declines post-earnings; AI infrastructure market potential $3T.
On September 5, 2025, Nvidia's stock declined after its earnings report, despite resolving Blackwell rack production issues and projecting the AI infrastructure market could reach $3–4 trillion annually by 2030.
AMD's stock declines on AI chip growth concerns and OpenAI chip plans.
On September 5, 2025, AMD's stock price declined due to a downgrade from Seaport Research citing slowing growth in its AI chip business and reports that OpenAI plans to produce its own AI chips.
FIIs sell off over Rs 60,000 crore in Indian financial, IT stocks.
Foreign Institutional Investors have sold off Indian financial and IT stocks worth over Rs 60,000 crore in two months due to concerns about earnings recovery and global economic headwinds.
S&P, Nasdaq futures rise awaiting US jobs report; OpenAI chip plan.
On September 5, 2025, S&P and Nasdaq futures rose slightly as investors awaited the US jobs report, while OpenAI plans to manufacture its own AI chip with Broadcom starting in 2026.
Policy Watch
Japan's average minimum hourly pay rises to record 1,121 yen.
In fiscal year 2025, Japan's average minimum hourly pay increased to a record 1,121 yen, a 6.3% increase, driven by rising living costs.
Putin refutes Russian economic stagnation claims, cites high interest rates.
On September 5, 2025, President Vladimir Putin refuted claims of Russian economic stagnation, attributing concerns to necessary high interest rates to combat inflation.
New GST rates in India to boost economy by simplifying taxation.
Effective September 22, 2025, new GST rates in India aim to boost the economy by simplifying taxation and reducing rates on daily-use goods, potentially adding Rs 20 lakh crore to the GDP.
Trump narrows Fed chair candidate list, seeks aligned rate cutter.
On September 5, 2025, President Trump announced his shortlist of four candidates to replace Jerome Powell as Federal Reserve chair, seeking someone aligned with his push for rapid rate cuts.
Germany's 2025 budget increases defense spending to 150 billion euros.
On September 5, 2025, in Berlin, the coalition presented Germany's 2025 budget, increasing the defense budget to 150 billion euros.
South Korea tightens Seoul mortgage rules to combat housing shortage.
On September 7, 2025, South Korea tightened mortgage rules in Seoul, reducing the loan-to-value ratio in wealthy areas to 40% to combat a housing shortage.
Danish Central Bank Governor suggests Denmark consider adopting the Euro.
Danish Central Bank Governor Christian Kettel Thomsen suggested that Denmark should consider adopting the Euro to enhance its role within the European Union and shield itself from global instability.
Uttar Pradesh accelerates strategy to achieve $1 trillion economy vision.
On September 6, 2025, Uttar Pradesh accelerated its strategy to achieve a $1 trillion economy by focusing on industrial growth, fast-tracking land allotment, and resolving acquisition hurdles.