China welcomes the resumption of Nvidia H20 AI chip sales. Japan warns tariffs “Not Right Tool” – Business Live

Introduction: China says that “twin cooperation is the right path” as the nvidia H20 sales have been cleared

Good morning, welcome to comprehensive coverage of business, financial markets and the global economy.

US-China relations appear to have warmed a bit after chipmakers nvidia A green light was given to Washington to resume sales of H20 AI chips to Chinese companies.

nvidia's CEO, Jensen Hanearlier this week, the US government revealed that his company had been granted a license to sell H20 chips to China, and that delivery would start soon.

This reverses restrictions announced in April when the White House announced stricter controls on exports of computer chips used in artificial intelligence.

And today, Beijing welcomes this change of mind, confirming that the US has “taken an initiative” to approve the sale of H20 again.

China's Commerce Ministry said in a statement that “victory cooperation” is the right path to collapse and that it hopes that both countries can “meet along the way” and cooperate.

The ministry also urged the US to abandon its “zero-sum mentality” and cancel “irrational” trade restrictions on China, warning that “control” would not lead to a solution.

The H20 Graphic Processing Unit (GPU) is an advanced chip used in AI systems. However, it is less powerful than today's top Nvidia semiconductors, as it is designed to comply with US restrictions for exporting AI chips to China.

Earlier this week, Commerce Secretary Howard Lutnick revealed that updated sales of H20 chips to China are linked to rare earth magnet trading. He also claimed that Nvidia would only sell China “fourth-best” chips.

Still, the prospect of increased sales to China brought Nvidia's shares to a high this week.

Orders from Chinese companies for H20 chips must be sent from Nvidia to the US government for approval.

Agenda

9.30am BST: UK bankruptcy data
10am BST: Eurozone construction output data for May
1:30pm BST: US homes start data for June
3pm BST: University of Michigan Consumer Trust Report

Important Events

Pharmaceuticals Firm GSK shares fell more than 6% in early trading after hematologic cancer drug Brenrep grabbed regulatory hurdles in the US.

Yesterday, the US FDA's Independent Advisors Panel recommended it to Brenrep, citing previous concerns about eye-related side effects.

GSK He told the city it was confident in Blenrep's profit/risk profile, and told it would continue to work closely with the FDA in completing its drug reviews. Final decisions on whether to approve the drug will be rested at the FDA. The FDA will consider the views of the Oncology Drug Advisory Committee (ODAC) that voted 5-3 against Blenrep.

The company added that in some markets, including the UK and Japan, the Blenrep combination has been approved for refractory multiple myeloma (cancer that does not respond to treatment), and applications in other markets, including the EU and China are being reviewed.

EU approves new Russian sanctions package

The European Union has announced approval of a new sanctions package on Russia regarding the war with Ukraine, including an amended oil price cap and new banking restrictions.

EU countries gave the package a green light this morning after Slovakia lifted its veto.

Kaja Crowa top representative of the EU's diplomatic and security policy says the sanctions package (EU's 18th) is one of the most powerful against Russia to date.

This includes access to more Russian banks to the Swift International Payments System, sanctions on Nord Stream Gas Pipelines, and banning a low cap on Russian oil sales.

We stand firm.

The EU has approved one of the strongest sanctions packages against Russia to date.

We are further cutting the Kremlin's war budget, chasing 105 shadow fleet ships, its enablers, limiting access to Russian bank funds. (1/3)

– Kaja Kallas (@kajakallas) July 18, 2025

Node stream pipelines are prohibited.
Lower oil price cap.

We are putting more pressure on blocking Russian military industry, Chinese banks that allow for sanctions to be avoided, and technology exports used in drones. (2/3)

– Kaja Kallas (@kajakallas) July 18, 2025

For the first time, we have designated the flag registration and the largest Rosneft refinery in India.

Our sanctions will also be attacked by those indoctrinated Ukrainian children.

We continue to raise costs, so stopping aggression will be Moscow's only path. (3/3)

– Kaja Kallas (@kajakallas) July 18, 2025

The diplomat told Reuters that the package would lower the price cap for the G7 for crude oil to $47.6 per barrel.

Bloomberg now has its new price cap at $60 per barrel and is now “dynamically” set at $15 below the market rate.

This follows criticism that Europe has spent hundreds of billions on Russian energy since the start of the Ukrainian War, exceeding the cost of KVIV's IT support.

BP agrees to sell to sell onshore wind business

Energy News: BP continues to urge them to return to oil and gas by agreeing to a deal to sell US onshore wind businesses to LS Power.

Wind Business operates nine onshore wind energy assets in seven US states, grid-connected and provides power to its customers.

William Lin, BP's “We are pleased to announce that we are committed to providing a wide range of services,” said Executive Vice President of Gas and Low Carbon Energy.

“We are revealing that low-carbon energy plays a role in simpler, more focused BP, but streamlines and optimizes portfolios to create value.

While there are great assets and great people in the American-style business on the land, we concluded that it is no longer the best owner to move it forward.

The price of the transaction has not been revealed. BP says simplifying and focusing its business is part of its $20 billion divestiture program.

Photo: Andrew Kelly/Reuters

In London, consumer goods manufacturer Reckitt Benckiser has agreed to sell a majority stake in Cillit Bang and Calgon Arm to Private Equity Firm Advent International.

The deal is worth up to £3.6 billion and confirms that Reckt holds a 30% stake in the essential home business – including brands such as Airwick, Woolite, Resolution, Sole, Easy Off

Chris Licht, Reckitt's The CEO says:

“We are implementing strategic plans at a pace.

The sale of Essential Home represents a significant step forward in unlocking substantial value in our business.

This will allow Reckitt to become a simpler and more effective world-class consumer health and hygiene company, allowing you to focus on the core portfolio of grown, high-margin power brands. ”

Share Reckitt Increased 1.5% when trading started, ftse 100 Top riser.

Kasuki knob KatoThe criticism of US tariffs comes after Japan's exports to the US fell for three months.

Data released on Thursday showed that the value of the cargo fell 11.4% in June in June compared to the same month last year.

The automotive sector was hit hard, with exports falling 26.7%. The number of vehicles has increased, but the average price has fallen by nearly 30%. That could be a sign that automakers are either reducing fees or delivering cheaper models to offset tariffs.

Japan's Kato says there are no tariffs that are not the right tool to correct trade imbalances

Donald Trump's trade war has come close to a meeting of G20 finance ministers in South Africa this week.

Japan told Durban's advanced economy gathering that tariffs were not the right way to correct trade imbalances.

Minister of Finance Kasuki knob Kato He told reporters at the G20:

“Japan said tariffs are actually not the right tool to fix excessive current account imbalances.”

Kato Countries facing such circumstances argued that they should be addressed through domestic efforts, rather than slap new taxes on imports.

The US trade balance (often the healthiest) has actually deteriorated as US companies competed to import goods before tariffs were imposed.

However, the US Secretary of the Treasury Scott Bescent I've never heard of it Kato He's not participating in the G20 so I'll send a message.

A Ministry of Finance official accompanying Kato explained that many G20 members claimed that market stress seemed to be somewhat mitigated. Bloomberg reportsthe world economy is not as hard as it would have expected from the trade war. [although, of course, some of Trump’s new tariffs now don’t start until 1 August].