Global Economic Shifts: China EV Surge, US Tariffs, Oil Prices, and Tech Stock Volatility

China’s electric vehicle surge is rapidly reshaping Australia’s car market, as cheaper, technology packed models win over buyers and challenge the long dominance of Japanese brands.

In the first half of this year, BYD sales jumped 124 per cent, Chery rose 77 per cent and Geely surged 495 per cent. All were off a much smaller base, which exaggerates the percentage gain. But there's no denying the trend.

Meanwhile, every major Japanese car maker except Honda recorded falling sales.

The shift is happening alongside a sharp rise in electric vehicles. According to Pitcher Partners' Steve Bragg, the Iran war has helped shift the dial.

Chief business correspondent Ian Verrender looks at how decades of investment helped China seize the lead, and why some of the traditional giants of the global car industry are now scrambling to respond.

Surging oil prices weighed on stocks, as fresh concerns about AI spending also rattled investors.

Alphabet fell 7.1% after lifting its capital spending forecast for the year, while Tesla sank 15% after its free cash flow turned negative in the second quarter.

Those declines helped drag the Nasdaq down 2.2%.

The Dow Jones Industrial Average lost 507 points, or 1%, while the S & P 500 fell 1.2%.

Investors also got a fresh look at another major AI chip giant, with Intel reporting results after the closing bell.

The company’s turnaround effort showed further signs of progress, with second-quarter earnings coming in well above market expectations.

Intel also issued a stronger-than-expected revenue outlook for the current period, suggesting the boom in data-centre spending is helping drive its recovery. Intel's shares jumped in after-hours trade.

We are continuing to track the latest from the Orgin Energy data breach.

Cyber experts this morning are warning personal information stolen in the Origin Energy data breach could be used for highly targeted scams, with AI making it easier to impersonate victims.

The exposed customer data may include names, dates of birth, phone numbers, addresses and email addresses, plus the last few digits of some credit cards and bank accounts.

Origin is still determining how many customers were affected.

Experts say scammers can combine that information with social media and previous data breaches to create convincing phishing messages, fake identities and even voice clones.

Customers are being urged to watch for unexpected calls and messages, particularly scammers pretending to be Origin, banks or other trusted organisations offering help.

Audrey Courty explains the risks.

Australia’s small businesses are under growing pressure from higher fuel prices, interest rates and inflation, on top of rising wages and new regulatory costs.

Signs of stress are starting to emerge.

While starting from a low base, small business insolvency rates are starting to tick upward with a 13 per cent increase in the number of businesses going bust in the six months to May 2026 compared to the same period last year.

Credit agency Equifax says higher-risk businesses are increasingly shopping around for finance, a possible sign they are struggling to secure loans, while some businesses are pulling back on plans to expand.

Business reporter Alison Branley looks at how operators are coping, and why small business groups are calling for more government support as pressures mount.

Oil markets are again on edge over the outlook for global supplies.

Brent futures jumped $6.62, or 7%, to settle at $100.69 a barrel, highest close since May 22. Oil prices rose for a fifth consecutive session.

The global oil benchmark is now almost 40% higher than when the Iran war began in February, with most of that rise coming this month.

US West Texas Intermediate crude climbed $5.36, or 6.2%, to $92.19 a barrel, its highest close since June 4.

Yemen's Houthis have opened another front in the Iran war by targeting vessels carrying Saudi oil through the Bab el-Mandeb Strait, after saying they would impose a naval blockade on Saudi shipments.

Analysts estimate the Strait of Hormuz and Bab el-Mandeb together carry the equivalent of around a quarter of the world's oil supply.

The rise in crude is also adding to inflation concerns because sustained increases in oil prices can eventually flow through to petrol, diesel and other costs for households and businesses.

In Australia, motorists are still receiving some relief, with the government extending the reduced fuel excise for another month, although at a lower rate. That is set to end on August 2.

According to the ABC's fuel tracker, as of 7am this morning, the average price of unleaded 91 is 185.2 cents a litre, while diesel is 226.1 cents.

The Trump administration has confirmed a 12.5 per cent tariff will be placed on Australian exports to the US from later today (AEST).

The tariff was proposed last month, after a US trade investigation into forced labour.

The Australian Government and Business Council of Australia made formal submissions opposing the tariff during a consultation period, which ended earlier this month.

The US Trade Representative has just announced the proposed tariff will take effect from 12:01am Friday, local time.

A temporary 10 per cent “global tariff” on the US’s trading partners will expire at the same time.

Australia is not the only affected country. Tariffs between 10 and 12.5 per cent will be placed on imports from 59 other economies, which represent all of the US’s major trading partners.

Good morning, and welcome to the ABC's business and finance blog!

Lin from the business team here to take you through this Friday morning.

It's was quite a session overnight.

Brent crude futures jumped 7% and hit $US100 dollars again as the escalating conflict in the Middle East renewed fears over global oil supplies.

Prices surged after Houthi rebels, a militant extremist movement based in Yemen, attacked oil tankers in the Red Sea. The surge in oil prices prompted worries about inflation days before the next US Federal Reserve meeting.

Higher bond yields are pushing up borrowing costs, with the 10 year Treasury yield at its highest in more than a year.

Oil prices put pressure on stocks, as well as earnings from tech giants Google and Tesla stoked fears about Big Tech's enormous AI spending.