Andrew Tilton of Goldman Sachs also expects that tariffs will give U.S. prices only a temporary lift, with PCE inflation expected to exceed 3% later this year.

Beijing

Goldman Sachs analysts have highlighted that China is leveraging its export sector and maintaining a competitive currency to offset domestic economic weakness and deflationary risks. The strategy is seen as a response to concerns about prolonged low inflation, similar to what Japan experienced in the 1990s and beyond.

Despite ongoing challenges in China's domestic economy, particularly in the property sector, exports have remained robust, especially to emerging markets. Policymakers are aiming to prevent deflationary expectations from taking hold in sectors with overcapacity, using targeted measures to support growth and stability.

Goldman Sachs: China leaning on exports to counter deflation

So you follow the high frequency data overnight. Obviously we had claims. They dropped. We had the revised Q2 GDP. That was actually surprisingly strong. Right. So it's it's starting to cloud the picture just how fast how aggressively and how soon the Fed is going to move. And we've got PCE dropping tonight to Asia time. What is that number going to look like. And I note here if I'm not mistaken correctly if I'm wrong PCE has been well above 2 percent. It's coming to 54 months straight now. Well on the first of the GDP you mentioned Q2 GDP was revised up in the US. It's true it was stronger than we are most I think anticipated. That's actually been true in Asia as well. And in a lot of countries you've seen pretty strong Q2 GDP that may in part reflect some of the front loading behavior around tariffs. With respect to PCE. Yes it's been running hot above the Fed's 2 percent target for quite some time. And we think it could actually top 3 percent year over year later this year as the tariffs fully the full effect of the tariffs passes through. That said you know we think tariffs effect will be a one off. You'll see inflation come back down. That the tariff increase pushes prices higher but it doesn't push inflation permanently higher. And that's I think a reason why the Fed has been willing to cut despite inflation being modestly above the target. So OK. Inflation stateside. So bring it back to Asia. You're overweight China as a house. I know. How are you viewing the government's attempts to try and make sure that not all companies die and we don't have blood on the streets and people are killing each other. Right. I mean cut the competition is what they want. It's good. It's healthy. I hate to say this. It's very capitalist though. They don't want to hear that. But how is that anti-involution drive going. Well it's we think fairly targeted. The intent here is to avoid a prolonged deflationary outcome. We often see Chinese policymakers and analysts looking at the analogies with Japan. And clearly policymakers would like to avoid the low inflation deflation outcome of Japan which was the 90s and beyond. You know slow growth very low inflation. They've tried to take lessons from that experience and chart a different path. One example is that China has kept the currency quite cheap which has made manufactured goods very competitive. So in addition to the intense competition that you talked about domestically with very competitive manufactured goods a you know we think you know somewhat undervalued currency is contributing to very strong performance for exports of those goods around much of the world. Less so directly to the U.S. of course given the tariffs but very strong market share gains around the world particularly in other emerging markets. So that's been an important source of growth for China even as the domestic economy particularly the property market has remained very weak. Yeah. Where does anti-involution come in. The idea is to make sure that we don't have an ongoing deflationary expectation in some of the sectors that are most overcapacity.

US President Donald Trump has hosted his Turkish counterpart Recep Tayyip Erdogan at the White House. The two leaders discussed Türkiye's long-disputed F-35 fighter jets, trade and energy ties as well as regional matters.

Istanbul

Trump hosts Erdogan as U.S. considers lifting ban on F-35 sales

President Donald Trump unleashed a fresh round of punishing tariffs on a broad range of imported goods, saying the U.S. will impose 100% duties on branded drugs and 25% tariffs on heavy-duty trucks, among other import tariffs, starting next week.

Washington

Global Tariffs

Trump slaps fresh tariffs on heavy trucks, drugs and furniture

Danish officials say a series of drone incursions they’re calling hybrid attacks at airports were carried out by ‘professional actors,’ and some analysts are pointing to Russia as a culprit. Russia has denied involvement.

Copenhagen

Russia denies involvement in drone flyovers at Danish airports

Secretary of Defense Pete Hegseth has summoned hundreds of senior military officials to Virginia for an urgent gathering. The pentagon has provided very little details about the purpose of this meeting.

Quantico

Hegseth calls rare meeting of hundreds of senior military officers

Spain and Italy have sent naval vessels into the eastern Mediterranean to escort a flotilla of activists trying to break Israel’s blockade of Gaza. It’s a move that could set up tensions at sea and comes after the convoy says it was attacked by drones.

Madrid

Middle East Conflict

Spain, Italy send navies to escort Gaza aid flotilla

Former FBI director James Comey has been indicted on charges of making false statements and obstruction of justice. Legal experts say the case could have major implications for the former bureau chief and raises questions about accountability at the highest levels of law enforcement.

Former FBI director James Comey indicted on two counts

Federal agents in Washington state have seized more than 50,000 counterfeit pills laced with carfentanil, a drug said to be 100 times more potent than fentanyl.

Centralia

Feds seize 50,000 pills laced with drug 100 times stronger than fentanyl

Palestinian Authority President Mahmoud Abbas addressed the United Nations General Assembly virtually after the U.S. revoked visas for him and members of his delegation. CBS News' Olivia Gazis reports.

Mahmoud Abbas promises no Hamas in post-war Gaza government

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D.C. midair collision victim's family sues airline, FAA and Army

Former French president Nicolas Sarkozy was found not guilty of receiving illegal campaign financing from late Libyan dictator Muammar Gaddafi for his successful 2007 presidential bid, but was pronounced guilty of criminal conspiracy in the same case.

Paris

France ex-President Sarkozy convicted of criminal conspiracy

China led several countries in announcing new climate plans on Wednesday and offered a veiled rebuke of the U.S. president's anti-climate rhetoric a day earlier at the U.N. General Assembly.

China sets new emissions goals after Trump rejects climate change

World leaders have launched an initiative, “Democracy Now,” on the sidelines of the UNGA to counter far-right extremism and defend multilateralism. As the UN faces skepticism, a new initiative by Brazil, Spain, Chile, Uruguay, and Colombia is gaining support among member states.

New York

Leaders at the U.N. push reforms to counter authoritarian rise

U.S. Secretary of State Marco Rubio met Russian Foreign Minister Sergei Lavrov on the sidelines of the U.N. General Assembly. The meeting came a day after President Trump appeared to soften his language on the Ukraine war, raising questions about U.S. policy direction.

Manhattan

Ukraine Invasion

Rubio meets Russia's Lavrov after Trump shifts tone on Ukraine war

The family of one of the 67 people killed earlier this year when an American Airlines plane and a  U.S. Army helicopter collided over Washington, D.C., filed a lawsuit against the government and the airline.

Widow of D.C. plane crash victim sues American Airlines, federal gov.

The new Paramount+ documentary "Bodyguard of Lies" highlights the efforts across four presidential administrations to conceal the challenges the U.S. faced during the Afghanistan

New documentary uncovers gov. deception during Afghanistan War

In his address to the U.N. General Assembly, Ukrainian President Volodymyr Zelenskyy warned that Russia wants to expand the war beyond Ukraine.

Putin wants to expand war beyond Ukraine, Zelenskyy warns U.N.

The Trump administration is rehiring hundreds of federal employees who were laid off during cuts made by the Department of Government Efficiency, or DOGE. CBS News' Olivia Rinaldi has more details.

Trump administration rehires hundreds laid off during DOGE cuts

Former French President Nicolas Sarkozy faces up to 10 years in prison if a Paris court convicts him of secretly using funds from the Libyan government of late dictator Moammar Gadhafi to finance his presidential campaign in 2007.

Ex-French President Sarkozy awaits verdict in trial

An international aid flotilla trying to deliver aid to Gaza said on Wednesday (September 24) it was attacked overnight by drones in international waters off Greece, prompting Italy to send a navy ship to come to its assistance.

Italy sends navy ship to help Gaza aid flotilla after drone attack

At least three people were shot at a Dallas Immigration and Customs Enforcement facility on Wednesday morning, officials said. One victim was killed, while two others are injured. The shooter died of a self-inflicted gunshot wound.

Dallas

Three people shot at ICE facility in Dallas, officials say

The U.S. has long argued China should give up the developing-country status because it is the world’s second-largest economy.

China gives up WTO developing-country status as tariff tensions linger

U.S. President Donald Trump reversed his stance on the Ukraine war after meeting President Volodymyr Zelensky at the UN General Assembly, now expressing confidence that Ukraine can reclaim all its territory.

Trump reverses stance on Ukraine after meeting with Zelenskyy

After a six-day suspension, late-night host Jimmy Kimmel broke down in tears during his return to TV with a monologue focused on the importance of the maintaining the right to free speech while still poking fun at the Trump administration.

Los Angeles

Jimmy Kimmel makes emotional return with monologue about free speech

Typhoon Ragasa, the world's most powerful tropical cyclone this year, struck the southern Chinese city of Yangjiang on Wednesday after lashing Taiwan and Hong Kong with ferocious winds and heavy rains.

Yangjiang

Typhoon Ragasa lashes Hong Kong, Taiwan, southern China

Mainland China is bracing for Super Typhoon Ragasa, after the powerful storm caused widespread destruction across the region. In Taiwan, at least 14 people have died in flooding triggered by the cyclone.

Kowloon

Typhoon Ragasa sweeping towards China, 14 killed in Taiwan

A jury has convicted Ryan Routh of attempting to assassinate U.S. President Donald Trump on his Florida golf course last year. He was found guilty of all five charges, which included attempted assassination of a major presidential candidate and assaulting a federal officer.

West Palm Beach

Ryan Routh found guilty of trying to assassinate Trump

U.S. President Donald Trump on Tuesday (September 23) spoke with reporters while meeting with Ukrainian President Volodymyr Zelenskyy at the United Nations General Assembly in New York City.

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Chipmaker Nvidia said it would invest up to $100 billion in OpenAI, the developer of ChatGPT, as part of a strategic partnership. CBS MoneyWatch correspondent Kelly O'Grady has more details.

Santa Clara

Rise of AI

Nvidia to invest up to $100 billion in OpenAI

For the first time in more than half a century, astronauts will soon be heading back to the moon. CBC's Nicole Mortillaro breaks down the preparations for the mission, Artemis II, which will send astronauts on a historic loop around the moon.

Houston

NASA prepares to send astronauts around the moon

U.S. President Donald Trump addressed the United Nations General Assembly in New York City, where he pushed back on countries that have formally recognized a Palestinian state. Trump also touted U.S. immigration policy.

Breakdown