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Beijing's move to tax offshore trusts, long used by China's ultra-rich to hold money, has set off a rush to lawyers and a scramble for cash. View More

CHINA - 2025/09/05: In this photo illustration, the 100-yuan RMB banknotes, a calculator and a Chinese national flag are placed on the table. Sopa Images | Lightrocket | Getty Images Offshore trusts have long been used by China's ultra-rich to tuck away hundreds of billions of dollars outside the country. Now, a move by Beijing to tax them has set off a rush to lawyers and a scramble for cash.For decades, the legal structure has been a favored vehicle of Chinese tycoons to hold everything from pre-IPO stakes to family fortunes — and their tax treatment in China was never spelled out. But on July 24, China's Ministry of Finance and tax authority issued the clearest rules yet on how they should be taxed.Now a 20% levy will be collected at nearly every stage of a trust's life, from establishment to profit distribution and termination. Families need to declare and pay outstanding amounts on assets transferred into such trusts since the start of 2023 by Oct. 22 — a total window of 90 days. Late declarations or non-payments could incur surcharges. That countdown has set off a scramble across Hong Kong and Singapore, popular destinations for China-linked families to set up trust structures. "Many clients, trustees, and advisors are still in shock," said Clifford Ng, a Hong Kong-based partner at Zhong Lun law firm. Calls have poured in from wealthy families, private banks, trust companies, and insurers, said Kia Meng Loh, chief operating officer and senior partner at Singapore-based law firm Dentons Rodyk. People want to know whether they are affected by the new rules, how large the tax bill might be, and how to settle it before the grace period expires, he said, adding that some are already weighing which assets to sell. "This is a watershed moment for China-linked private wealth planning," Loh added. For an industry built on decades of Chinese money, the sums potentially involved are massive. Assets held under trusts in Hong Kong alone reached HK$5.2 trillion ($667 billion) in 2023, with 55% of the underlying investments located in mainland China and Hong Kong, according to a report by KPMG and the Hong Kong Trustees' Association, which called the mainland the industry's most significant growth driver. Singapore, along with the British Virgin Islands and the Cayman Islands, has been favored as another legal hub for Chinese high-net-worth families to hold offshore assets. KPMG found some clients see less political risk in the city-state than in Hong Kong, according to a report released in 2025. "Wealth owners from a diverse range of countries choose Singapore for many reasons, including our high standards of regulation, strong rule of law, and a comprehensive ecosystem of wealth managers and professional service providers," a Monetary Authority of Singapore spokesperson told CNBC.Hong Kong's Financial Services and the Treasury Bureau hadn't provided comment by the time of publication.The tax revision comes as the Chinese government looks for new sources of fiscal revenue. Land sales – which used to be a major contributor to budgetary financing – collapsed amid a broader economic slump. Citizens' mountains of overseas assets presented a compelling target. Local tax bureaus in Shanghai, Shenzhen and Jiangsu had begun inspecting offshore trusts and applying 20% levies in select cases even before the national rules were released. Individual income-tax revenue jumped 13.1% in the first half of 2026, even as retail sales barely grew.Chinese officials have also been taking tougher stances on capital flows out of the country, including banning three cross-border online brokerage firms from the country earlier this year.  Look for cash The super-rich are calling lawyers to figure out the scope of their exposure and pin down a tax bill. There are multiple challenges.Taxable amounts submitted to Chinese authorities will need to match figures already shared with Beijing by foreign governments under the Common Reporting Standard, the global tax-information exchange, said Richard Grasby, a partner at offshore law firm Appleby in Hong Kong. Since first participating in the CRS in 2018, offshore financial account information has been continuously exchanged with Chinese tax authorities. Some assets may be hard to value. The wealth inside these trusts is often locked up in operating companies, pre-IPO stakes, properties, and other illiquid assets. Past banking and trading records may be difficult or impossible to locate. What's more, "dipping into the trust fund itself to cover the bill could trigger additional tax," Grasby said.  The retrospective 90-day window could lead to 'forced or pre-emptive stake reductions' to fund compliance.Xiangrong YuCitigroup economist But it's a distinct possibility for many trust holders that they'll need to sell something in order to pay the new levies."Finding cash for taxes can be more complicated than calculating the tax," Dentons Rodyk's Loh said. His clients are weighing distributions, asset sales, financing, and installment plans. "Most of them are saying that they will liquidate some of their portfolio to pay the tax," said Ryan Lin, a director at Singapore's Bayfront Law whose clients include wealthy Chinese families. He said listed Hong Kong and A-share holdings are likely to bear the brunt because they are the most liquid assets in many portfolios.  Risk to stocks One obvious asset class that could be affected: Hong Kong equities, where founders of some mainland companies hold their stakes in trusts, according to Citigroup economist Xiangrong Yu."The retrospective 90-day window could lead to 'forced or pre-emptive stake reductions' to fund compliance," Yu said. But others see the pressure as relatively contained. Edith Qian, Hong Kong and China equity strategist at CGS International, noted most large red-chip names were listed well before the 2023 lookback period. Dominic Chiu, senior analyst at Eurasia Group, expects "one-off, episodic selling pressure rather than a sustained market crash." And in certain scenarios, people can apply for installment terms with local tax bureaus to pay the sum over five years, according to Beijing's policy announcement last month. So far there are few signs of a stampede for exits, as unwinding a trust crystallizes the very tax bill families were trying to manage, and China's 20% flat rate remains well below the top U.S. federal rate of 37% that American taxpayers face on worldwide income. Individuals with foreign citizenship or residency abroad will have limited shelter, lawyers say, as they can still be treated as Chinese tax residents if their primary economic interests remain in China – akin to Washington's longstanding taxation of Americans wherever they live. "A second passport is not a tax plan," Loh said. Offshore trusts can still play an important role in asset protection, wealth preservation and family succession planning, but they are no longer effective tax-planning tools, said Michael Olesnicky, senior consultant at Baker McKenzie. One thing seems certain — any Chinese citizen with this type of account needs to be paying attention to their obligations, and the sooner the better, to avoid falling afoul of the new mandate."It may be difficult to come up with the correct numbers within 90 days if at all," said Ng. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Larsen & Toubro's offshore business secured a major order exceeding fifteen thousand crore rupees. This prestigious contract comes from Adnoc Offshore for a significant project in West Asia. The engineering and construction conglomerate will lead the development of multiple offshore facilities. Fabrication work will be undertaken at L&T's own fabrication yards. This collaboration supports the UAE's energy ambitions through innovative offshore solutions. View More

Larsen & Toubro’s (L&T) offshore hydrocarbon business has secured a more than ₹15,000 crore order from Adnoc Offshore for a major project in West Asia. The engineering and construction conglomerate classifies orders valued at more than ₹15,000 crore as ultra mega. It didn’t disclose the exact order value. Also Read: L&T bets Rs 5,000 crore on a new electronics business, targets $4.85 bn market Adnoc Offshore is the offshore exploration and production arm of the Abu Dhabi National Oil Company (Adnoc) and among the largest oil and gas producers globally. Describing the contract as “prestigious,” SN Subrahmanyan, chairman and managing director at L&T, said, “As a longstanding partner in the region, we remain committed to supporting the UAE's energy ambitions through innovative, sustainable and world-class offshore solutions.” Live Events The project entails the development of multiple offshore facilities. It will be implemented through a consortium arrangement, with L&T Energy Hydrocarbon Offshore (LTEH Offshore) serving as the lead partner. It will carry out the major share of the project scope. This covers engineering, procurement, construction, installation and commissioning (EPCIC) of the offshore facilities, besides the upgrade of existing facilities. Also Read: L&T secures order from NTPC for 1,600 MW thermal power plant in Chhattisgarh A significant share of the fabrication work will be undertaken at L&T’s fabrication yards, leveraging the company’s integrated EPCIC capabilities and extensive track record in delivering large and complex offshore developments across West Asia. LTEH Offshore provides engineering, procurement, construction, installation and commissioning solutions for the offshore oil and gas industry . It has in-house engineering capabilities, fabrication facilities and a dedicated fleet of marine vessels. Shares of L&T closed 0.15% higher at ₹4,006 apiece on the BSE, compared to a 0.27% decline in the benchmark Sensex. .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;width: 100%;box-sizing: border-box} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)

West Bengal government has approved land acquisition for a new railway line. This project aims to improve connectivity to the India-China-Bhutan tri-junction area. The new rail link will boost tourism in the Jhaldhaka-Bindu-Todey Tangta region. Railways and the forest department will conduct a joint survey after the monsoon. This strategically important project was previously stalled due to state government non-cooperation. View More

The company didn't provide updated guidance. New CEO Silvio Napoli earlier this year suspended production expectations. View More

In this articleLCIDFollow your favorite stocksCREATE FREE ACCOUNT The Lucid Gravity is displayed during the 2023 Los Angeles Auto Show at the Los Angeles Convention Center on Nov. 24, 2023.Josh Lefkowitz | Getty Images News | Getty Images Lucid Group missed Wall Street's second-quarter expectations as the electric vehicle manufacturer conducts an "operational reset" amid leadership changes and cost-cutting efforts.Those plans include beginning non-prototype robotaxi production early next year and delaying its upcoming midsize vehicle that was expected at the end of this year until "most likely" the second half of 2027, Lucid CEO Silvio Napoli told CNBC on Tuesday."We're not going to make the mistake of the past where products, great cars, were in fact tainted by launching before things were ready," he said. "I think it's going to be '27. ... Most likely the second half of '27."Shares of Lucid fell roughly 8% during after-hours trading.Here's how the company performed in the second quarter compared with average estimates compiled by LSEG:Loss per share: $3.30 vs. a loss of $2.46 expectedRevenue: $405 million vs. $416 million expected 'Transformation program' The company did not release updated 2026 guidance. Napoli, who started leading the automaker in June, previously suspended production expectations amid a reevaluation of Lucid's business operations.He told CNBC the company is "not ready" to give such guidance as Lucid resets investor expectations and has a new, incoming leadership team. Lucid also reduced production at its U.S. plant in Arizona from two shifts to one in June."I want it to be anchored in solid data, and most of all, I want a guidance that I'm confident Lucid will be able to deliver on and possibly even do better than that. This takes time," he said. "I wanted to make sure that we align the reality with consensus, which is today based on outdated business model."Napoli did say the company's second-half production is expected to be lower than Wall Street's consensus and the first half of the year, while deliveries are expected to be higher than the first half of the year.The company also released broad details of an "operational reset" or "transformation program" that includes identifying $1.4 billion in cash flow improvement opportunities this year.They include approximately $600 million to $800 million in vehicle inventory, $500 million in capital expenditures, and $200 million in operating expenses, the company said.In addition to the cost-cutting, Lucid said the plan will broadly focus on three key areas: "cash and cost," "customer and quality" and "culture and team." More specifically, the company said its efforts will focus on its robotaxi program with Uber and Nuro; a factory that's under construction in Saudi Arabia; and its upcoming midsize vehicle. Lucid called the robotaxi initiative a "top priority." Napoli said the company's robotaxi plans continue, including the production of prototype vehicles based on the company's Lucid Gravity SUV instead of its midsize vehicle. He said the company expects to deliver about 100 of the preproduction vehicles by the end of the year to its partners, with actual vehicle production in the beginning of next year. "The robotaxi opportunity is huge, and it's an industry that is about to start an exponential growth," he told CNBC. "Not many companies are ready for it. We are a software-defined vehicle company, so we are well positioned." Stock Chart IconStock chart iconLucid, Rivian and Tesla stocks Lucid, which reported $3 billion in total liquidity to end the second quarter, said the actions and its current financials are "expected to provide sufficient liquidity runway well into 2027.""Silvio and his leadership team are transforming the company, and the Board stands firmly behind their actions," Lucid Chairman Turqi Alnowaiser said in a release.The missed results and comments come weeks after Lucid denied an online report that it was considering bankruptcy or taking the company private. The report caused shares of the company to plummet. The stock recovered some of those losses, but remains off nearly 30% in 2026.Napoli adamantly denied such plans on Tuesday to CNBC, as he did when they were reported."I wholeheartedly reinforce the denial," he said. "We are here to stay. We are here. We have a plan. We have a board and a majority investor that will help us to go through what is admittedly a moment where we are doing many things at the same time."Its largest shareholder is Saudi Arabia's sovereign wealth fund, the Public Investment Fund. Second-quarter results Lucid's second-quarter results included a net loss of more than $1 billion compared with a loss of $539.4 million during the second quarter of last year. The company reported an adjusted loss of $901.1 million, or $3.30 per share, compared with a loss of $632.1 million, or $2.80 per share, a year earlier.The losses were on production of 4,774 vehicles, up 24% year over year, and deliveries of 3,953 vehicles, up 19%, during the second quarter. The company currently offers the Air sedan and Gravity SUV that start at roughly $70,000 and $80,000, respectively.Napoli, who formerly led an escalator and elevator manufacturer, replaced interim CEO Marc Winterhoff on June 1. Winterhoff remained with the company until late June as Napoli put together a new leadership team. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

The Dow had its best day in nearly two months and the S&P 500 rose to new highs. View More

In this article.SPX@DJ.1Follow your favorite stocksCREATE FREE ACCOUNT Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., July 24, 2026. Brendan Mcdermid | Reuters Wall Street sent stocks soaring to records on Tuesday as a multitude of factors combined to form a broad rally.The Dow Jones Industrial Average surged more than 900 points for its best day in nearly two months. The S&P 500 jumped nearly 2% to a new all-time high in what became one of its biggest single-day advances of the year."It's not just one specific news event that's causing the rally. You're getting a succession of events," said Paul Hickey, co-founder at Bespoke Investment Group. "Multiple positive catalysts tend to have longer legs." Here are five reasons why the market took off: 1. Bessent's Iran comments to CNBC Treasury Secretary Scott Bessent told CNBC's "Squawk Box" that the U.S. and Iran could reach a deal either Tuesday or Wednesday that would reopen the Strait of Hormuz. "We are in talks with the Iranians," Bessent said in a Tuesday morning interview with CNBC. "There is a chance we may have a deal today or tomorrow to open the strait and move towards a more normalized position in this conflict."Dow futures surged following his commentary on Hormuz, a key passageway for the global crude trade that's become a focal point of the economic impact tied to the monthslong conflict. Oil futures tumbled, further lending support to an equity rally and sending bond yields — another sticking point for investors — tumbling. Zoom In IconArrows pointing outwardsFactSet Jeff Krumpelman, chief investment strategist at Mariner, said that the market is "assuming that we're going to be able to handle the closing of the Strait of Hormuz just fine" and that oil prices are going to stabilize longer term. He cautioned, however, that it could still be a headwind if the conflict continues to be extended and oil prices reaches $150 per barrel.Iran headlines are likely going to keep driving the market, according to Larry Tentarelli, chief technical strategist at the Blue Chip Daily Trend Report. While Tuesday's developments led to a market pop, he said investors should still be ready for big swings in either direction if tensions once again flare up between the two countries."You've got decent headlines for Iran," Tentarelli said. "But if for some reason the headlines go the other way, then we just need to keep in the back of our mind to expect some volatility." 2. Earnings are booming A strong earnings backdrop was already underpinning the bull case for many investors this year, but the second quarter results have been positively explosive. The S&P 500 is on track to deliver second quarter earnings growth of 27% on a yearly basis, excluding mark-ups at Google-parent Alphabet and Amazon, according to Bank of America Securities. That's a 4% beat versus the consensus from the start of the earnings season. "War continues to get shrugged off," said Jay Woods, chief market strategist at Freedom Capital Markets. "Earnings are finally winning."With the inclusion of Alphabet and Amazon, the broader index is on pace to deliver even more incredible earnings growth, of 45% year over year, Bank of America noted."Right now, I think you're sitting there asking me, 'Oh, what happens if tech misses?' And I'm saying, 'Well, most are in good shape,'" Krumpelman told CNBC."Have you checked out the earnings growth rates in healthcare, industrials, financials, consumer [staples], and these other areas? It's strong double digit," he continued. "That will support further advancement in the market."To be sure, S&P 500 companies haven't been rewarded as much for their beats this earnings season than in the past, with the average stock in the index slipping 0.2% in the day after reporting, according to data from Charles Schwab. But that could be starting to reverse, with Caterpillar's and Palantir's post-earnings ascents on Tuesday only adding to confidence.  3. Tech is rallying together A divergence within the high-flying technology sector took center stage in recent months with chip stocks for a time seen as the big A.I. winners, while those needing to pay for those semiconductors — big megacap tech like Microsoft and software companies — seen as the losers.That then reversed in July as chip stocks imploded with the group seen as too overheated by some.But so far in August, especially on Tuesday, investors were buying a broad array tech stocks on optimism they all can be winners from A.I.The iShares Semiconductor ETF (SOXX) jumped more than 6% on Tuesday, while the iShares Expanded Tech-Software Sector ETF (IGV) added nearly 5%. Both groups provided upward momentum to the broad sector, with the tech-heavy Nasdaq Composite rising more than 2.5%. Investors had largely looked beyond the group of marque technology stocks known as the Magnificent Seven that had been responsible for driving the market higher over recent years.But even these megacap stocks joined in on Tuesday's rally, with the Roundhill Magnificent Seven ETF (MAGS) going up almost 1% in the session. Still, the fund is up only around 5% in 2026 compared with the S&P 500's 13% advance, underscoring its underperformance as of late.Part of the rebound in technology stocks could also stem from the group's recent challenges. The more-concentrated Nasdaq 100, which rose by over 3% on Tuesday, had dropped into a shallow correction last week. 4. Index breakout The S&P 500 is also tearing through a key resistance level that brought on more buying, with technical analysts previously watching carefully to see if the broader index could close and stay above the 7,620 level which represents the June high. On Tuesday, the broad market index opened above that level and never looked back, closing above 7,700 for the first time ever. Zoom In IconArrows pointing outwards The recent streak of buying only adds to conviction that the rally has legs. Historically speaking, four back-to-back days of greater than 1% gains in the Nasdaq Composite is a precedent for further gains, according to Bespoke's Hickey. "The fact that you get such consistent buying four days in a row suggests that it's real buying," Hickey said. For Krumpelman, he predicts the S&P 500 can reach as high as 8,100 by year-end. By mid-2027, he thinks the index will be at 8,400."If there's no wall of worry, all the money's in. Everyone's invested," he said. "I'm going to take my cues from the trend in earnings, inflation, employment, real GDP growth, credit spreads, and as long as they're trending in the right direction as they are now, then my targets will hold." 5. Aschenbrenner's effect Investors see another reason why the market has been poised for a bounce like Tuesday's: The near-collapse of Leopold Aschenbrenner's Situational Awareness fund.Situational Awareness peaked in July at around $45 billion, aided by surging memory names and other momentum plays. But after the fund came under pressure, Aschenbrenner had to sell his leveraged stock bets to Citadel last week.More broadly, momentum investors appeared washed out into the end of July, which prompted technical selling. With the slate cleaned on these higher-volatility trades and the Nasdaq 100 well off highs, traders were ready to buy entering the new trading month, which began with Monday's opening bell.Call it the "Leopold low," said Jeff Kilburg, investing chief at KKM Financial."The algorithmic selling the last two weeks before Aschenbrenner's forced sale in these momentum names was like something I've never seen before," Kilburg said. "We finally got rid of the bullying shorts in the momentum names that pushed the Nasdaq 100 into a correction. And once we got rid of this Wall Street noise, the focus turned back to earnings growth and we are seeing the best growth we've seen in decades."After Tuesday's rally, the S&P 500 is now up 3.3% for August. The Nasdaq Composite is up nearly 5% in two days alone. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

"Our customers have declined to become vassal states of the language labs," Palantir's co-founder and CEO Alex Karp said after blowout second-quarter earnings. View More

In this articlePLTRFollow your favorite stocksCREATE FREE ACCOUNT Palantir CEO Alex Karp speaks during an interview on July 27, 2026 in New York City.John Lamparski | Getty Images Palantir stock skyrocketed 29.5% on Tuesday after the company reported "otherworldly" second-quarter earnings driven by customer demand for AI sovereign tools.Shares narrowly missed their best day ever, when the stock gained 30.8% on Feb. 6, 2024.The enterprise software giant reported a 93% growth in overall revenue to $1.94 billion, up from around $1 billion a year ago, and beating LSEG estimates of $1.8 billion. Its commercial revenue jumped 149% to $764 million, and government revenue grew 90% to $809 million. The company expects full-year revenue between $8.15 billion and $8.158 and commercial revenue in excess of $3.424 billion. Palantir was last up 16.3% in premarket trading. Palantir's Co-founder and CEO Alex Karp described the quarter as "otherworldly," adding that the sovereign AI revolution makes them "very optimistic about the future.""Forget consensus," Karp told CNBC's Seema Mody in an exclusive interview. "To my knowledge, no businesses at our scale has even grown half this much." watch nowVIDEO14:4814:48Watch CNBC’s full interview with Palantir CEO Alex KarpNews Videos Palantir, which designs systems that help companies integrate AI with their existing systems and data, pinned its blowout earnings on growing demand for AI sovereignty as companies seek to keep their data private from frontier AI labs like OpenAI, Google, Anthropic, and Meta. In a letter to shareholders, Karp said "the revolution for independence and AI sovereignty is now well underway," noting that the business has "Marxist" values. "Our customers have declined to become vassal states of the language labs," Karp said in the letter. "Every organization in the world is awakening to the risks of handing the creators of the language models the keys to their institutions, of letting the models loose within their homes."At Monday's close, the company's stock was down 29% in 2026 as investors have increasingly become cautious on the AI trade. With Tuesday's rally, shares have cut that loss, and over the last 12 months, shares are up 1%. Stock Chart IconStock chart iconPalantir's stock in 2026 so far. Despite this, Citi analysts said in a note on Tuesday that Palantir's results "further weaken the bear case around rising AI competition," as demand for data privacy from AI companies sets it apart. Companies rely on Palantir's technology to integrate their software, while also making demands to keep their data private from AI models. "In our view, the results reinforce Palantir's position as one of the clearest beneficiaries of enterprise AI adoption, with accelerating commercial demand demonstrating the company is benefitting from similar demand as the fastest AI natives on the market," the analysts said in a previous note on Monday. "We expect shares up meaningfully given the significant snapback in U.S. Commercial performance, which pushes back against slowing growth," they added. Read more CNBC tech newsSpaceX revenue jumps 92% and AI costs soar in first earnings report since IPONJ files antitrust suit against Amazon, alleging it unlawfully wielded power over delivery contractorsPalantir stock skyrockets on 'otherworldly' commercial revenue — here's what's driving the demandHow the 'Baby iPhone' and an Apple supplier leak explain China's recent supply chain moves Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

The move comes as oil prices slid more than 2% on the day after Bessent told CNBC an agreement to open the Strait of Hormuz could come Tuesday or Wednesday. View More

In this articleUS30YUS2YUS10Y@CL.1@LCO.1Follow your favorite stocksCREATE FREE ACCOUNT A stock exchange curve appears on a smartphone screen, and a map shows the Strait of Hormuz on a laptop computer screen in this photo illustration taken in Athens, Greece, on March 3, 2026.Nurphoto | Nurphoto | Getty Images Treasury yields moved lower on Tuesday, following oil prices, after new comments from Treasury Secretary Scott Bessent on the prospects of an agreement to open the Strait of Hormuz. The yield on the 10-year U.S. Treasury note — the key benchmark for U.S. government borrowing — fell more than 6 basis points to 4.619%.The 2-year Treasury note yield, which more closely tracks short-term Federal Reserve interest rate policy, slipped more than 5 basis points to 4.198%. The longer-dated 30-year Treasury bond yield shed more than 4 basis points to 5.182%.One basis point is equal to 0.01%, and yields and prices move in opposite directions. The move comes as oil prices slid after Bessent told CNBC an agreement to open the Strait of Hormuz could come Tuesday or Wednesday. U.S. West Texas Intermediate futures fell 5.69% to close at $75.77 per barrel, while international benchmark Brent crude moved down 5.26% to $79.36."We are in talks with the Iranians," Bessent told CNBC's "Squawk Box." "There is a chance we may have a deal today or tomorrow to open the strait and move towards a more normalized position in this conflict."But Tony Miano, global fixed income analyst at Wells Fargo Investment Institute, noted that even if oil shipments resume, it might be a while before the market registers any significant impact."It could take time for oil market fundamentals to stabilize, and even longer for consumers to see meaningful relief at the gasoline pump," he said. "As a result, inflation is unlikely to normalize overnight.""Energy-related inflation pressures may ease, but broader inflation could remain sticky in the near term, limiting how far Treasury yields move lower," Miano continued.Yields had been rising of late, with the 30-year hitting its highest level since 2007, as elevated oil prices sparked concern of persistent inflation. Investors are also grappling to an apparently "hawkish hold" from Federal Reserve interest rate setters last week. — CNBC's Mike Sheen also contributed to this report. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Financial planners weigh in on a recent trend on TikTok that has users sharing the items they swear are always worth the money. View More

Videos on TikTok of users sharing the items they swear are "always" worth the money have racked up hundreds of thousands of views and likes this summer.The items mentioned in the posts range widely, from skin care products to upgraded airline seats. Sometimes creators make targeted lists, such as purchases that are always worth it for moms or restaurants in New York worth the price.Of course, what's worth the money for one person may be completely useless to someone else, regardless of the cost. Even the most popular espresso machines will be practically worthless to someone who doesn't drink coffee, for example.Financial planners tend to avoid giving blanket spending advice because everybody's financial situation is unique. Working with a financial planner who gets to know your long-term goals and personal values can help you decide what big purchases will likely be worth your investment and which you should probably skip.That said, some purchases generally tend to make more financial sense than others. CNBC Make It asked money pros for items they think are worth the money as well as purchases that sometimes or rarely pay off. Here's what they had to say. Planners say these purchases are always worth the money Some of the themes that jumped out from planners' "always worth the money" lists were products and services that can prevent you from costlier expenses down the line or support individuals' overall health and wellbeing. Preventative care"Preventive spending is almost always worth the money," says Jordan Gilberti, certified financial planner based in Florida. He includes medical and dental care in that category as well as maintenance on your home and car that can help shield against costly repairs in the future. In addition to seeing medical professionals, purchases that support your overall health on a daily basis are typically worth it."I don't cut corners on any of the following: Good sunscreen and good skin care," says Marguerita Cheng, a Maryland-based CFP and member of CNBC's Financial Advisor Council. Things you stand, sit, lie or drive onSeveral planners named an umbrella category of high-quality versions of "anything between you and the ground," as Noah Schwab, a CFP based in Spokane, Washington, puts it. That includes shoes, mattresses, tires and office chairs. "The cost per use is pennies and the alternative eventually shows up as a medical bill," he says.Time-saving servicesProducts and services that save you time also appeared on a number of planners' lists. Kelly Klingaman, a CFP based in Austin, Texas says direct flights, bi-weekly housecleaning services and curbside grocery pickup are worth it, for example. San Francisco-based wealth advisor, Vishal Kumar agrees that paying someone to handle things he doesn't enjoy like cleaning or other administrative tasks is a worthy investment. "It costs real money, but it hands back hours and a bit of mental space," he says. "Buying back your own time is one of the few purchases that quietly pays you back."Retirement contributionsSome of the items planners say are worth the money aren't products you'll buy in a store. Contributing to your workplace retirement account like your 401(k) and getting an employer match, if available, is always worth the money, Reggie Fairchild, a CFP based in South Carolina, says. These purchases are sometimes worth the money There's a level of risk you assume basically anytime you're spending money. And while it's clearer that certain purchases are almost always or very rarely worth it, these items fall right in the middle.Life insuranceA few planners say life insurance policies, which provide a payout to your beneficiaries in the event of your death, are sometimes worth the money. As with virtually any financial product, it really depends on your personal situation.  There are two main types of life insurance — whole and term — and planners say that term life insurance may be worth it for more families than whole.With term life insurance, you're covered for a set number of years, and policies are generally lower-cost. Florida-based CFP Erin O'Brien says term life insurance is especially worth it if you have a spouse and children who couldn't get by without your income. "[It's] so important to protect your family," she says.Whole life insurance covers you for life and has a cash value you can access while you're alive.These policies may be worth the investment for a "narrow set of high-net-worth" families, Schwab says. Whole life insurance plans are often marketed to young families as retirement plans, but are "usually the most expensive way to invest for retirement," and probably not worth it, he says.Home improvementsHome renovations fall into another category of purchases that are often thought of as investments. After all, if they add more value to your home than they cost, they could theoretically be worth the money. But Schwab says many homeowners fail to recoup the renovation costs when they sell.Think of home upgrades as "worth it for the years you'll enjoy the space," rather than as a financial investment, he says. For example, if you are a cooking enthusiast who plans to live in the same home for a while, updating your kitchen could be well worth the costs, even if the changes won't increase your home's value by much."The return is the years of enjoyment you get from the space, not money you'll ever see back," says Schwab.Extended warrantiesPlanners say extended warranties on items such as cars and home appliances can sometimes be valuable while others said they're never worth it. Texas-based CFP, Joshua Brooks says extended warranties are often unnecessary, but "can make sense if a repair would significantly disrupt your finances."Private wealth advisor Brett Hina of New Jersey adds that it really depends on the extended warranty policy and purchase it's protecting. You may already have the appropriate coverage through a factory warranty or sometimes the cost of the extended warranty exceeds the real protection it offers, he says. Items that are rarely worth the money Like the "always" category, there may be some exceptions with items planners say are "never" worth the money. But for the most part these purchases may come with buyer's remorse.Storage unitsFairchild says he often sees clients who get a storage unit while they're moving and it's rarely been worth the cost. That's because people tend to use the units as a repositories for items they don't want to keep but can't commit to getting rid of, he says. "Rent it if you need it, but put a real deadline on it, one season, then decide," says Fairchild. "The monthly fee isn't the price of storage. It's the price of not deciding."Unused subscriptionsThe "unused" part is key for subscriptions. Several planners mention memberships or subscriptions that are only worth it if you actually use them. So try to be sure of that before you commit and make it a point to regularly audit your subscriptions in case you're paying for something you forgot about.Status purchasesMany planners agree that anything you buy that's intended to impress other people or "keep up" with peers or influencers you see online is not going to be worth the money, especially if you take on debt to buy it."One of the biggest financial mistakes I see isn't a specific product — it's lifestyle inflation driven by comparison," says Hina. "Buying things primarily to signal success can make it harder to achieve genuine financial independence."That goes for luxury cars, a bigger house than you can truly afford and designer-brand items that aren't necessarily better quality."Spend generously on the things that genuinely improve your life, and be intentional about the things that don't," says Hina.Want to get ahead at work? Then you need to learn how to make effective small talk. In CNBC's new online course, How To Talk To People At Work, expert instructors share practical strategies to help you use everyday conversations to gain visibility, build meaningful relationships and accelerate your career growth. Sign up today! Take control of your money with CNBC Select CNBC Select is editorially independent and may earn a commission from affiliate partners on links.Tariffs and gas prices are intensifying the affordability crunch. These 3 products can helpCNBC Points Pro: If I book off-season travel, will my credit card points go further?Switching to electric because of high gas prices? 3 ways to make your EV more affordableStudent loan default is rising: 3 ways to start paying down your balance — even on a tight budgetAre smartphone credit cards worth it? With the Samsung Galaxy Card launch, here’s when they make sense for your wallet VIDEO8:0208:02How I became a doctor at a Yale hospital that I used to clean as a janitorMillennial Money

Michigan's Senate Democratic primary between Abdul El-Sayed and Rep. Haley Stevens is one of the most closely watched races of the midterm election. View More

Abdul El-Sayed, left, and Rep. Haley Stevens, D-Mich., are the Democratic Senate candidates from Michigan.Getty Images Michigan Democratic voters head to the polls Tuesday to choose between Abdul El-Sayed and Rep. Haley Stevens as their Senate candidate in one of the most closely watched and impactful primary elections of the 2026 midterms.Stevens, a more moderate Democrat, and El-Sayed, a former public health official who has run an anti-establishment, progressive campaign, are vying for the seat Democratic Sen. Gary Peters will vacate at the end of this Congress. The result could help decide control of the Senate for the next Congress and influence the direction of the Democratic Party in the coming years.El-Sayed has notched endorsements from progressive heavyweights like Sen. Bernie Sanders, I-Vt., and Rep. Alexandria Ocasio-Cortez, D-N.Y., and appears to have the edge according to polling. A win for him would be a massive boon for the left-flank of the Democratic Party, which has recently scored upsets in New York and Colorado.Michigan is a bellwether state in national elections. President Donald Trump won there by 1.4 percentage points in 2024 after losing to Joe Biden by 2.8 percentage points in 2020. In 2016, Trump won Michigan by less than a third of a percentage point. The results of Tuesday's Senate primary will provide a window into how voters are feeling nationally two years before the next presidential election. Read more CNBC politics coverageChatGPT dominates early AI spending in Congress as lawmakers weigh regulationTrump slams Pirro after she moves to drop Reflecting Pool vandalism caseAnalysis: Markets heard a dovish Warsh. Fed chairman's words suggest a rate hike Stevens' supporters include Michigan Gov. Gretchen Whitmer and former Michigan Sen. Debbie Stabenow, both Democratic heavyweights in the state. Stevens' campaign has told voters she has the best chance to beat former Rep. Mike Rogers, the Republican nominee, in the general election this November. Michigan is seen as a must-win for Democrats if they want to retake a Senate majority. It's also a crucial seat for Republicans if they are to retain control of the chamber."When she got elected to the Congress, she flipped a seat from a Republican to a Democrat. She knows how to beat Republicans" Peters said of Stevens, who came to the House in 2019, at a campaign event on Monday. "We have to win in November. We have to keep Michigan blue. Haley Stevens is the person to do that."What started as a three-way race winnowed to two in July when Michigan state Sen. Mallory McMorrow, who tried to stake out a middle ground between Stevens and El-Sayed, dropped out. The contest between El-Sayed and Stevens has been tense at times, as the two candidates split over issues like AI data centers and U.S. foreign policy, especially aid to Israel."If you believe like me that rather than fund the genocide perpetrated by a foreign government, we better build schools right here in Grand Rapids, then we better put ourselves in democracy," El-Sayed said at a recent campaign stop. Voters go to the polls to cast their ballots in the Michigan primary election on Aug. 4, 2026, in Lansing, Michigan. Michigan has a nationally watched U.S. Senate primary where U.S. Rep Haley Stevens, D-Mich., is competing against Abdul El-Sayed to decide who will run against former Republican Rep. Mike Rogers for Michigan's open U.S. Senate seat.Bill Pugliano | Getty Images Stevens, meanwhile, has cast El-Sayed as an extremist and as the GOP's preferred candidate this November."You see the Republicans, they're propping up my Democratic opponent. The Republican in this race, he said … my opponent is going to make it easier for him to win. Well, I don't plan on making anything easier for these guys," Stevens said on MS NOW.The Michigan primary comes as Republicans, including Trump, are increasingly calling their Democratic adversaries communists and raising alarms about the extreme policies of the Democratic Socialists of America.Neither Stevens nor El-Sayed are members of DSA. El-Sayed, while running to the left of Stevens, rejects the socialist label. Still, Trump in the Oval Office on Monday characterized the race as a battle between far-left ideologies."Well, you have a very interesting group. Who I'm really voting for is Mike Rogers, because I think he's going to be a great senator," Trump told reporters after being asked who he is voting for in Michigan, a state where he doesn't vote. "You have a communist versus a socialist. That's the way I look at it … it looks like the communist is leading. We're talking about the Democrat primary. But for the Republican you have a very good man, and he should be able to win." Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

The July decline adds to a lackluster sales year for the automaker, with results off 9.7% compared with 2025. View More

In this articleFFollow your favorite stocksCREATE FREE ACCOUNT Ford Motor vehicles are displayed for sale at the Leif Johnson Ford dealership on June 30, 2026, in Austin, Texas.Brandon Bell | Getty Images DETROIT — Despite reporting a 10.2% decline in its July U.S. vehicle sales Tuesday, Ford Motor is touting the results as a "good sales month."That's according to Rob Kaffl, Ford's director of U.S. sales, who said the steep decline from the previous year was "by design," as the Detroit automaker phased out two vehicles and lowered its daily rental fleet business. "July was a good sales month for a number of reasons. Our July results reflect a strategy that is working exactly as planned: we've intentionally been sunsetting select models and pulled back on low-margin rental fleet volume to make room for an onslaught of new-product introductions by the end of the decade," Kaffl said in an emailed statement.Many times, automakers do not cancel products — like Ford has done with its Ford Escape and Lincoln Corsair — until closer to production of newer models. Or they build up inventories to assist sales during the changeover in production for new vehicles.Kaffl said the company prioritized retail sales of its F-Series pickup trucks as the automaker continues to recover production after two fires last year at a major aluminum supplier. The company said rental sales, which typically are less profitable, were reduced by 96% compared with a year earlier. Read moreAre Americans ready to embrace tiny 'cars'? These companies think soFord raises guidance after Q2 earnings beat, says F-Series recovery is on trackAs Honda CR-V leads U.S. sales, automaker teases new American-built pickup truck Without such actions, Ford contends its sales would be down less than 1%, slightly better than an estimated 2% fall for the overall industry compared with July 2025. Planned or not, the decline last month adds to a lackluster sales year for the automaker following the troubled F-Series production as well as a pullback in all-electric vehicle sales. Ford's sales year to date through July are down 9.7%.Ford's U.S. sales through June were already off 9.6% from a year earlier. That compares with an estimated 2.4% sales decline for the overall industry through the first half of the year, which doesn't include July, according to the most recent data from Cox Automotive's Kelley Blue Book. Higher prices and consumer economic concerns are weighing on the overall auto industry, which Cox and other forecasters expect to be off about 3% compared with last year, to 15.8 million new vehicles sold. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.