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Robust dealmaking activity and strong trading results helped boost US bank earnings Tuesday despite lingering worries about a softening job market and a potentially overvalued stock market.Profits rose in the third quarter at JPMorgan Chase and three other US lending giants, reflecting strength in core business areas and the still-healthy condition of many consumers even after a lengthy stretch of persistently high costs that have stretched low-income households.At JPMorgan, profits were $14.4 billion, up 12 percent from the year-ago level, with revenues of $46.4 billion, up 9 percent.The bank, the biggest US lender in terms of assets, reported somewhat higher credit costs in the quarter as it disclosed details about a $170 million hit from the bankruptcy of Tricolor, a subprime auto lender. But JPMorgan executives reiterated that consumers remain generally “resilient” and mostly on time with credit card payments, a tone echoed by other large banks. “We’ve been waiting for the so-called consumer recession, but it doesn’t materialize,” said investment banker and author Christopher Whalen of Whalen Global Advisors.The large banks “don’t do business with subprime” customers, said Whalen, who suspects more troubles involving banks’ corporate lending will surface in time. – Stock market ‘frothiness’ -More bank earnings will be released in the coming days, but Tuesday’s batch showed increases all around with Citigroup profits rising 16 percent to $3.8 billion, Goldman Sachs up 39 percent to $3.9 billion and Wells Fargo up 9 percent to $5.6 billion.Goldman Sachs pointed to its role as the “exclusive advisor” to Electronic Arts in a $55 billion deal to go private as it confidently described its merger and acquisition “pipeline” of pending and future deals. Other banks also touted strong demand for financial advisory service. But they expressed concern about weakening US job data.”While there have been some signs of a softening, particularly in job growth, the US economy generally remained resilient,” said JPMorgan chief executive Jamie Dimon.”However, there continues to be a heightened degree of uncertainty,” said Dimon, pointing to tariffs, the risk of “sticky” inflation and other factors.Executives also acknowledged concerns that sky-high equity valuations for artificial intelligence companies may be out of hand.Citigroup Chief Financial Officer Mark Mason said the stream of stock market records suggests “some frothiness in different sectors,” adding, “we’ll have to see how that ultimately evolves.”- Problem loans limited so far -Heading into the results, one overhang facing the sector was the question of exposure to a pair of recent high-profile bankruptcies.Accounts of the collapse of Texas-based Tricolor have pointed to “apparent or alleged fraud,” JPMorgan Chief Financial Officer Jeremy Barnum said on a conference call with reporters. Barnum said it can be difficult to avert all cases where a “motivated party” is committed to deception, but that the firm was looking at fortifying its controls.”This is not our finest moment,” added Dimon, who said colleagues would “scour every issue” in light of the revelations on the case.Citigroup also disclosed what it called “idiosyncratic downgrades” that more than doubled its corporate non-accrual loans compared with last year.Mason said Citi had not experienced broad problems within its portfolio, noting the bank was not exposed to Tricolor or to First Brands, a US auto supply firm whose bankruptcy has hit some other lenders, including UBS and Jefferies.”There’s no particular concentration of exposure that I’m worried about,” he said.While the damage from such examples has been limited so far, more cases of problem corporate lending could surface. Whalen said the financial system is still flush from a period of great liquidity due to central bank actions.”There’s been so much credit available,” he said. “It’s just that they haven’t gotten to the point where they’re cleaning house.”

US authorities on Tuesday unsealed an indictment against Chen Zhi, a UK-Cambodian businessman accused of running forced labor camps in Cambodia where trafficked workers carried out cryptocurrency fraud schemes that netted billions of dollars.The 37-year-old, known as Vincent, founded Prince Holding Group, a multinational conglomerate that authorities say served as a front for “one of Asia’s largest transnational criminal organizations,” according to the US Department of Justice.The Justice Department also filed the largest forfeiture action in its history, seizing approximately 127,271 Bitcoin worth around $15 billion at current prices.”Today’s action represents one of the most significant strikes ever against the global scourge of human trafficking and cyber-enabled financial fraud,” said Attorney General Pam Bondi.Chen allegedly directed operations of forced labor compounds across Cambodia where hundreds of trafficked workers were held in prison-like facilities surrounded by high walls and barbed wire.Under threat of violence, they were forced to execute so-called “pig butchering” scams — cryptocurrency investment schemes that build trust with victims over time before stealing their funds.The schemes targeted victims worldwide, causing billions in losses.Scam centers across Cambodia, Myanmar and the region use fake job ads to attract foreign nationals — many of them Chinese — to purpose-built compounds, where they are forced to carry out online fraud under threat of torture.Since around 2015, Prince Group has operated across more than 30 countries under the guise of legitimate real estate, financial services and consumer businesses, prosecutors said.Chen and top executives allegedly used political influence and bribed officials in multiple countries to protect the operation. Proceeds were laundered in part through the Prince Group’s own gambling and cryptocurrency mining operations.The stolen funds financed luxury purchases including watches, yachts, private jets, vacation homes and a Picasso painting bought at a New York auction house, authorities said.Chen faces up to 40 years in prison if convicted on wire fraud and money laundering conspiracy charges.In coordinated action, British authorities on Tuesday froze 19 London properties worth over £100 million linked to Chen’s network, including a £12 million mansion in North London.The sanctions also target Chen’s associate Qiu Wei Ren, a Chinese national with Cambodian, Cypriot and Hong Kong citizenship.An AFP investigation on Tuesday found that scam centers in neighboring Myanmar were expanding rapidly just months after a crackdown there. China, Thailand and Myanmar forced pro-junta Myanmar militias who protect the centers to promise to shutter the compounds in February, freeing around 7,000 people — most of them Chinese citizens.But the brutal call center-style system is flourishing again in Myanmar, now using Elon Musk’s Starlink satellite system for internet access.

China, the European Union and several other members of the International Maritime Organization reaffirmed their support on Tuesday for ambitious plans to cut shipping emissions, despite US threats.Initially approved in April, the London-based IMO are set to vote on Friday on formally adopting the Net Zero Framework (NZF), the first global carbon-pricing system.However, Washington’s threat to impose sanctions on those supporting it had cast doubt on the future of the framework, just as the summit where it is due to be adopted got under way.The summit’s first day on Tuesday was marked by friction between members supporting the NZF and those opposing it.The framework would require ships to progressively reduce carbon emissions from 2028, or face financial penalties.Last week, the United States threatened countries who vote in favour of the framework with sanctions, visa restrictions and port levies, calling the proposal a “global carbon tax on the world”.But several countries, including Britain, Brazil, China and the European Union, reaffirmed their commitment during Tuesday’s meeting of the 176-nation IMO.”We believe that reaching a consensus on global implementation (of the framework) is essential,” a representative from China told members.- Oil producers’ opposition -To be adopted, the framework needs the backing of two-thirds of the present and voting IMO members that are parties to the so-called MARPOL anti-pollution convention.The convention has 108 members.A majority of members — 63 states — that voted in favour of the NZF in April are expected to maintain their support on Friday.The plan would charge ships for emissions exceeding a certain threshold, with proceeds used to reward low-emission vessels and support countries vulnerable to climate change.Several major oil producers — Saudi Arabia, Russia and the United Arab Emirates — voted against the measure, and are expected to do so again this week, arguing it would harm the economy and food security.Pacific Island states, which abstained in the initial vote over concerns the proposal was not ambitious enough, are now expected to support it.The United States withdrew from IMO negotiations in April and did not comment on the proposal until last week.US threats could affect “countries more sensitive to US influence and vulnerable to these retaliations”, a European source told AFP.”We remain optimistic about the outcome, but it will probably be tighter than before, with a higher risk of abstention,” the source added.Countries highly dependent on the maritime industry, such as the Philippines and Caribbean islands, would be particularly impacted by US visa restrictions and sanctions.Contacted by AFP, IMO Secretary-General Arsenio Dominguez declined to respond directly to the US statement, maintaining he was “very confident” about the NZF vote.If the global emissions pricing system was adopted, it would become difficult to evade, even for the United States.IMO conventions allow signatories to inspect foreign ships during stopovers and even detain non-compliant vessels.Since returning to power in January, US President Donald Trump has reversed Washington’s course on climate change, denouncing it as a “scam” and encouraging fossil fuel use by deregulation.

US Treasury Secretary Scott Bessent slammed Beijing in an interview this week, accusing it of seeking to harm the global economy after China slapped sweeping new export controls in the strategic field of rare earths.”This is a sign of how weak their economy is, and they want to pull everybody else down with them,” Bessent told the Financial Times in an interview on Monday.His comments came days after Beijing imposed fresh controls on the export of rare earth technologies and items. China is the world’s leading producer of the minerals used to make magnets crucial to the auto, electronic and defense industries.Trade tensions between Washington and Beijing have reignited in US President Donald Trump’s second presidency, with tit-for-tat duties reaching triple-digit levels at one point.For now, both countries have de-escalated tensions but the truce remains shaky.The US Treasury chief claimed China’s new controls signaled problems in its own economy: “They are in the middle of a recession/depression, and they are trying to export their way out of it.”China has in recent years battled slowing economic growth and high youth unemployment, with growth hitting 5.2 percent in the second quarter.Beijing’s new measures sparked a fiery response from Trump, who on Friday said he would roll out an additional 100-percent tariff on the country’s goods from November 1.On Tuesday, US Trade Representative Jamieson Greer told CNBC that timeline could be accelerated.”A lot depends on what the Chinese do,” Greer said in the interview, adding that Beijing had “chosen to make this major escalation.”Last week, Trump also threatened to scrap a planned meeting with Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) summit starting later this month.China over the weekend accused the United States of “double standards” after Trump’s threat of further tariffs. The US leader later insisted that he wanted to “help China, not hurt it.”On Tuesday, China said it was ready to “fight to the end” in a trade war with the United States, shortly before a new wave of US tariffs on wood products took effect.A senior US official told the FT that China International Trade Representative Li Chenggang had previewed many of China’s current lines of attack that recently played out.The official said Li was aggressive in stating that the United States would face “hellfire” if things did not go his way.

Chipmaker Nexperia said Tuesday the Chinese government had banned it from exporting goods from China, after Dutch authorities seized control of the Netherlands-based firm citing management concerns.Nexperia has found itself at the centre of a tug-of-war between China and the Netherlands over semiconductors, an increasing source of global geopolitical tension.In its first statement since the Dutch move took effect on September 30, Nexperia said it was “actively engaging” with authorities in Beijing to gain an exemption from China’s counter-measures.Late Sunday, the Dutch government said it had invoked a Cold War-era law to effectively take control of the company, citing concerns about mismanagement.Under the 1952 Goods Availability Law, the Dutch government can block key decisions about hiring staff or relocating company parts for one year.The Dutch government said its use was “highly exceptional” and was invoked to ensure Nexperia’s chips that are used in a wide variety of electronic equipment would remain available in an emergency.The firm said that China’s response came on October 4.”The Chinese Ministry of Commerce issued an export control notice prohibiting Nexperia China and its subcontractors from exporting specific finished components and sub-assemblies manufactured in China,” the firm said.Nexperia said the Companies Chamber of the Amsterdam Court of Appeal had ordered the suspension of Chief Executive Zhang Xuezheng after concluding there were “valid reasons to doubt sound management.”- ‘Recklessness’ -The court published its judgement later Tuesday, which detailed a series of alleged impropriety by an executive not named in the statement, but identified as the CEO.The chamber found this executive guilty of a conflict of interest via his controlling stake in a Shanghai-based firm WSS, which manufactures wafers, the key components in semiconductors.According to the court, the CEO forced Nexperia to order as much as $200 million of wafers from WSS in 2025, when it only needed around $70-80 million.”This would mean that the wafers to be supplied by WSS would not be processed but be held in stock until obsolete… so that Nexperia was effectively ordering scrap,” the court said.In addition, the CEO cut off key finance officials from banking authorisation, granting power of attorney to individuals with no financial experience.”For a company the size of Nexperia, such conduct borders on recklessness,” said the court.The CEO fired executives who protested against this move, while the Global Head of Finance resigned after 39 years at the firm or its predecessors.Finally, the court said the CEO refused to implement key management changes agreed with Dutch authorities to ease concerns about Nexperia’s Chinese links.The chamber therefore decided to suspend the CEO and transfer all shares, except one, to an independent court-appointed administrator.Also revealed in the court document was an ultimatum from the US administration that was drawing up its “entity list” of firms viewed as acting contrary to Washington’s national security.The court cited minutes of meetings between Dutch officials and the US Bureau of International Security and Nonproliferation.The key point that was “problematic” for the American officials was “the fact that the company’s CEO is still the same Chinese owner.””It is almost certain that the CEO will have to be replaced to qualify for an exemption from the entity list,” the court cited the minutes as saying.Based in the Dutch city of Nijmegen, Nexperia says its chips power “virtually every electronic design worldwide.”Once part of Dutch electronics giant Philips, it was acquired in 2018 by Wingtech.

The International Monetary Fund on Tuesday lifted its outlook for global growth this year, flagging a milder-than-expected economic hit from President Donald Trump’s tariff policies while warning of risks ahead. In its flagship World Economic Outlook (WEO) report — compiled before the most recent US-China tariff spat — the IMF hiked its 2025 global growth forecast to 3.2 percent, up from 3.0 in July, while leaving its prediction for 2026 unchanged at 3.1 percent. The global inflation rate is expected to remain elevated at 4.2 percent this year, and 3.7 percent in 2026, underpinned by elevated inflation in several countries including the United States. “The tariff shock itself is smaller than initially feared,” IMF chief economist Pierre-Olivier Gourinchas told reporters in Washington on Tuesday, adding that the private sector had also supported growth by responding to Trump’s tariffs in an agile way.Other factors, including the AI boom and fiscal policies in Europe and China had also helped to prop up the global economy, he said.But, he warned, “the tariff shock is here, and it is further dimming already weak growth prospects.”Since returning to office, Trump has imposed sweeping tariffs on top trading partners including China and the European Union in a bid to reshape US trading relationships and boost domestic manufacturing. Over the weekend, the US president threatened fresh tariffs of 100 percent on China, on top of current steep levies, criticizing Beijing’s recent decision to tighten export controls on the rare earth minerals crucial to the defense and high-tech sectors. “Everything is very fluid,” Gourinchas told AFP in an interview. “But I think it’s a very useful reminder that we live in a world in which this kind of increase in trade tensions, increase in policy uncertainty, can flare up at any time.”- US upgraded, China unchanged -The IMF raised its prospects for economic growth for the United States, the world’s largest economy, by 0.1 percent this year and next, to 2.0 percent in 2025, and to 2.1 percent in 2026. However, this still represents a marked slowdown from 2024, when US growth hit 2.8 percent.Despite the trade tensions between the world’s two biggest economies, the Fund still expects China’s economy to slow to 4.8 percent this year from 5.0 percent in 2024, before cooling sharply to just 4.2 percent in 2026, in line with previous estimates. China’s slowdown has been driven by a reduction in net exports, which have been at least partly offset by growing domestic demand fueled by policy stimulus, the Fund said. Elsewhere in Asia, the IMF raised India’s 2025 growth forecast to 6.6 percent from 6.4 percent in the last outlook update in July, and hiked its prediction for growth in Japan to 1.1 percent — up 0.4 percentage points.  – Europe’s growth troubles continue -The outlook for Europe has improved slightly from July, with the Eurozone now expected to grow by 1.2 percent this year and by 1.1 percent in 2026. But despite the upgrade, Europe’s growth trajectory still significantly lags the United States.Germany’s economy is expected to bounce back from recession to register growth of 0.2 percent this year, up 0.1 percentage point, before picking up to 0.9 percent next year. And France, which is in the midst of a prolonged political crisis, is expected to see growth cool to 0.7 percent this year, before rising slightly to 0.9 percent in 2026.The one market exception in the Eurozone is Spain, which saw an upgrade and is now expected to see growth remain resilient at 2.9 percent this year and 2.0 percent in 2026.Growth in the United Kingdom is now expected to hit 1.3 percent this year and next. As the war in Ukraine continues, the Russian economy is likely to see a marked slowdown in growth this year to just 0.6 percent this year from 4.3 percent in 2024, the IMF said, cutting its outlook by 0.4 percentage points.

The IMF said Tuesday that a “rebalancing” of China’s economy through fiscal measures targeting social spending and property would help battle deflationary pressure, as growth in the country is forecast to slow.Beijing has in recent years been seeking to reverse a stubborn slump in household spending as a protracted debt crisis in the real estate market and overseas tumult in the trade sector spook consumers.The International Monetary Fund’s latest World Economic Outlook report noted “weakness in domestic demand” in the world’s second-largest economy — echoing a broader Asian outlook dimmed by Washington’s trade war.Consumer prices fell in August at their fastest rate in six months, according to official figures. Data expected Wednesday will show how they fared in September.Given those hurdles, the IMF said China’s “fiscal policy stance remains appropriately expansionary”. But it also warned current policies mark “a continued departure from the stance that is needed to avoid rising debt to GDP over the medium term”.”For China, rebalancing toward household consumption — including through fiscal measures with a greater focus on social spending and the property sector — and scaling back industrial policies would reduce external surpluses and alleviate domestic deflationary pressures,” the IMF said.The Fund forecast China’s annual growth to hit 4.8 percent year-on-year in 2025 before slowing to 4.2 percent next year.Both figures were unchanged from last update in July. In a sign of coming pressure, growth is expected to slow to 3.7 percent in the fourth quarter of this year, a slight downward revision.The IMF’s latest advice comes ahead of a key political gathering of China’s ruling Communist Party next week in Beijing, where leaders will chart the country’s economic direction for the next five years.The report was compiled before a bombshell announcement Friday by US President Donald Trump of 100 percent tariffs on Chinese goods from November 1 — retaliation for Beijing’s new sweeping export controls on rare earths. Trump’s announcement rattled markets and cast doubt on a potential meeting with Chinese President Xi Jinping in South Korea.Beijing’s commerce ministry vowed Tuesday to “fight to the end” in its trade war with Washington, if necessary.Globally, “trade policy uncertainty is assumed to remain elevated through 2025 and 2026”, the IMF said.- Tariffs bite -Growth in emerging and developing Asia is forecast to slow from 5.3 percent in 2024 to 5.2 percent in 2025, and further to 4.7 percent in 2026. The IMF said the trend “largely mimicked that of effective tariff rates”, with ASEAN countries among the most affected.Japan is expected to rebound from near-stagnation, with growth rising from 0.1 percent in 2024 to 1.1 percent in 2025, supported by stronger real wages and consumer spending. Growth is seen easing to 0.6 percent in 2026.India’s economy is projected to expand 6.6 percent in 2025, revised upward due to a strong first quarter, before slowing to 6.2 percent the following year.The China-US trade standoff was encouraging countries to relocate production out of China to Southeast Asia and India, and the IMF reported a shift in trade flows towards Asia in the automotive sector.The IMF however warned that trade diversion and rerouting — while offering short-term resilience — are costly and risk fragmenting global supply chains.Prolonged uncertainty over trade policy is, in the Fund’s view, likely to weigh on business investment decisions and cloud growth prospects, while fragmenting supply chains over the medium term.It also cautioned that ad hoc trade deals “would not meaningfully reduce trade policy uncertainty” and could trigger “tit-for-tat dynamics” if they discriminate against third countries.

China imposed sanctions on five American subsidiaries of South Korean shipbuilder Hanwha Ocean on Tuesday, accusing them of supporting a US government investigation into the shipping industry, as tit-for-tat port fees took effect.The United States announced in April it would begin applying fees to all arriving Chinese-built and operated ships after a “Section 301” investigation found Beijing’s dominance in the industry was unreasonable.Beijing responded last week by announcing “special port fees” on US ships arriving at Chinese ports. Fees on both sides kicked in Tuesday.The sanctioned subsidiaries are Hanwha Shipping LLC, Hanwha Philly Shipyard Inc., Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC and HS USA Holdings Corp.The United States’ investigation and subsequent measures “severely damage the legitimate rights and interests of Chinese enterprises”, Beijing’s commerce ministry said in a statement.The Hanwha subsidiaries “assisted and supported the relevant investigation activities of the US government, endangering China’s sovereignty, security and development interests”, it said. Organisations and individuals in China are now banned from cooperating with them.- ‘Unfair competition’ – Separately on Tuesday, China’s Ministry of Transport opened a probe into whether the US Section 301 investigation impacted the “security and development interests” of China’s shipbuilding industry and supply chain.The ministry said it would consider whether enterprises or individuals had supported the investigation, raising the prospect that more US-linked firms could face restrictions.Washington has said its port fees are to address Chinese dominance of the global shipping sector and provide an incentive for building more ships in the United States.The industry is now dominated by Asia, with China building nearly half of all ships launched, ahead of South Korea and Japan.Hanwha, one of South Korea’s largest shipbuilders, announced $5 billion investment in Philly Shipyard, in the US city of Philadelphia, in August.China’s commerce ministry called the US measures “typical unilateralist and protectionist actions” that constituted “unfair competition”, in another statement on Tuesday.”China urges the US to correct its wrongful practices, work together with China in the same direction and resolve issues of mutual concern through equal dialogue and consultation,” it said. 

Asian stocks sank Tuesday on fresh trade war worries after China imposed curbs on US units of a Korean shipbuilder, dealing a blow to hopes that a flare-up at the weekend had been settled.Losses were felt most in Tokyo, where Japanese political turmoil added to the mix, with questions being raised about the chances of Sanae Takaishi becoming the country’s first woman prime minister.Markets have been whipsawed in recent days after Donald Trump on Friday lashed out at Beijing over its curbs on rare earths, fanning fears he will reignite their trade war following a months-long truce.Traders breathed a sigh of relief Sunday, though, when he shifted his tone by insisting in a social media post that “it will all be fine”, and adding that he wanted to “help” China.That was enough for US dealers to return to the market at the start of this week, with all three main indexes on Wall Street rallying.Asia’s losses were limited Monday, but after a healthy start Tuesday markets sank again after China sanctioned five US subsidiaries of South Korea’s Hanwha Ocean, accusing them of supporting a Washington probe into the shipping industry.The United States earlier this year carried out a “Section 301” investigation that found Beijing’s dominance in the industry was unreasonable and imposed port fees, sparking tit-for-tat measures by China.The commerce ministry in Beijing said Tuesday in a statement: “The United States’ investigation and subsequent measures “severely damage the legitimate rights and interests of Chinese enterprises.”The subsidiaries “assisted and supported the relevant investigation activities of the US government, endangering China’s sovereignty, security and development interests”, it said. Markets across Asia tumbled, with Hong Kong off almost two percent, while Shanghai, Singapore, Seoul, Wellington, Taipei, Mumbai, Bangkok and Jakarta also retreated.Shares in Hanwha dropped more than five percent in Seoul.The selling also came amid growing concerns that the AI-fuelled rally in stocks this year — which has helped push several markets and companies to record highs — may have been overdone and a bubble is forming.”Given the recent rally, positioning was stretched (and) any bad news is a cue to sell risk…which indicates the market is looking for an excuse for a selloff,” said Neil Wilson of Saxo markets.”The extent of the selling could be the cue for the last bears to throw in the towel.”Tokyo dived three percent at one point as investors returned from a long weekend also focusing on political uncertainty in Japan, where the ruling coalition collapsed Friday as junior partner Komeito quit the alliance.The move imperilled Takaichi’s chances of becoming premier, having been elected the ruling party’s leader this month. Stocks had surged after her election on hopes she will unveil fresh stimulus measures and push for looser monetary policies.It was reported at the weekend that Komeito will seek to support a unified candidate with other groups in a bid to stop Takaichi — who needs approval from parliament — from becoming premier. In commodities trade, gold and silver sank soon after they both touched records.Silver had earlier in the day struck a peak of $52.90 as investors sought other safe havens as gold continued to hit new highs, at point reaching $4,179.70.Oil was also sharply lower on renewed worries about a revival of the China-US trade war.- Key figures at around 0715 GMT -Tokyo – Nikkei 225: DOWN 2.6 percent at 46,847.32 (close)Hong Kong – Hang Seng Index: DOWN 1.8 percent at 25,429.61 Shanghai – Composite: DOWN 0.6 percent at 3,865.23 (close)London – FTSE 100: DOWN 0.4 percent at 9,403.54 Euro/dollar: DOWN at $1.1567 from $1.1568 on MondayPound/dollar: DOWN at $1.3275 from $1.3332Dollar/yen: DOWN at 151.91 yen from 152.31 yenEuro/pound: UP at 87.15 pence from 86.77 penceWest Texas Intermediate: DOWN 1.0 percent at $58.89 per barrelBrent North Sea Crude: DOWN 1.0 percent at $62.69 per barrelNew York – Dow: UP 1.3 percent at 46,067.58 (close)

Google said Tuesday it will invest $15 billion in India over the next five years, as it announced a giant data centre and artificial intelligence base in the country.”It is the largest AI hub that we are investing in anywhere outside of the US,” Google Cloud CEO Thomas Kurian said at a ceremony in New Delhi.Demand for AI tools and solutions is surging among businesses and individuals in India, which is projected to have more than 900 million internet users by year’s end.Kurian announced “capital investment of $15 billion” over the five years and a “gigawatt-scale AI hub in Visakhapatnam”, a port city in the southeastern state of Andhra Pradesh.Google plans for the centre to scale to multiple gigawatts, he added, comparing the project to “a digital backbone connecting different parts of India together”.Globally, data centres are an area of phenomenal growth, fuelled by the need to store massive amounts of digital data, and to train and run energy-intensive AI tools.Google chief Sundar Pichai said on X that he had spoken to Prime Minister Narendra Modi about the “landmark development”.”This hub combines gigawatt-scale compute capacity, a new international subsea gateway, and large-scale energy infrastructure,” he wrote.”Through it we will bring our industry-leading technology to enterprises and users in India, accelerating AI innovation and driving growth across the country.”- ‘Data is the new oil’ -India’s Information Technology Minister, Ashwini Vaishnaw, thanked Google for the investment.”This digital infrastructure will go a long way in meeting the goals of our India AI vision,” he said.Andhra Pradesh Chief Minister Chandrababu Naidu called it a “very happy day”. The state’s Technology Minister Nara Lokesh said on X that the deal followed “a year of intense discussions and relentless effort”.Lokesh, speaking at the announcement, said that “data is the new oil and data centres are the new refineries”.”This is about India playing an important role on the global landscape,” he added.Recently top American AI firms looking to court users in the world’s fifth-largest economy have made a flurry of announcements about expanding into the country.This month US startup Anthropic said it plans to open an office in India next year, with its chief executive Dario Amodei meeting Prime Minister Modi.Modi, in a post on X, told Amodei that “India’s vibrant tech ecosystem and talented youth are driving AI innovation”, adding that he wanted to “harness AI for growth”.OpenAI has said it will open an India office later this year, with its chief Sam Altman noting that ChatGPT usage in the country had grown fourfold over the past year.AI firm Perplexity also announced a major partnership in July with Indian telecom giant Airtel, offering the company’s 360 million customers a free one-year Perplexity Pro subscription.