Hanoi’s Fossil Fuel Phase-Out: Nearly 7 Million Gasoline Vehicles Set for Ban by 2026

Economic

Summary:

A new government directive sets July 2026 as the deadline for banning all gasoline-powered motorbikes within Hanoi’s inner Ring Road 1, potentially affecting up to 7 million fossil-fueled vehicles...

Government Directive Sets Bold Targets for Fossil Fuel Vehicle Elimination

Prime Minister Pham Minh Chinh’s latest directive on environmental protection outlines a sweeping transportation reform for Hanoi. Beginning July 1, 2026, all motorbikes and mopeds powered by gasoline will be banned from circulating within Ring Road 1. This restriction will gradually expand: by January 1, 2028, the prohibition will include motorbikes and significantly restrict gasoline-powered cars within Ring Road 2. By 2030, the policy is expected to cover up to Ring Road 3.

This plan directly affects nearly 7 million personal vehicles currently operating on fossil fuels. As of December 2024, the Hanoi Department of Transport reports more than 9.2 million vehicles in circulation across the city. Of those, 6.9 million are motorbikes and over 1 million are cars under Hanoi’s direct jurisdiction, with another 1.2 million vehicles from neighboring provinces entering the city daily. The vast majority run on gasoline or diesel, especially in the inner urban areas where traffic congestion is chronic and emissions remain largely unregulated.

Environmental and Infrastructure Pressures Drive Urgent Reform

The policy's rationale is rooted in both environmental and urban planning concerns. The combustion engine fleet is one of the leading contributors to air pollution in Hanoi, a city where the majority of its 6 million motorbikes and approximately 800,000 gasoline cars continuously emit harmful exhaust fumes into the densely populated inner districts. This steady output of pollutants severely impacts public health, with particulate matter and nitrogen dioxide levels frequently exceeding safe thresholds.

At the same time, the pace of vehicle growth dramatically outpaces infrastructure expansion. The Department of Transport reveals that the annual increase in vehicle ownership hovers between 4% and 5%, a rate that is 11 to 17 times higher than the pace of road expansion. For private automobiles specifically, the growth rate reaches 10% annually, outstripping the development of transport land area by more than 30 times. This mismatch not only strains existing traffic systems but also undermines the city’s ability to provide accessible and safe mobility.

While the policy may initially appear disruptive, particularly for low-income residents who rely on motorbikes for daily commutes and economic activities, the long-term goals are anchored in urban sustainability and public health. The growing evidence of traffic-related illnesses and smog-induced respiratory conditions underscores the urgency of a systemic shift.

Policy Impact and Conditions for Success

The policy introduces complex trade-offs that must be addressed through coordinated planning and social support. If implemented without adequate preparation, the ban risks exacerbating inequality by marginalizing lower-income individuals who may not be able to afford electric alternatives. Therefore, the success of the fossil fuel phase-out will hinge on several conditions.

First, public transportation must be significantly improved, both in coverage and reliability. A strong mass transit system can serve as a viable replacement only if it meets the needs of diverse commuting patterns. Second, financial incentives and support for electric vehicle adoption especially affordable e-motorbikes will be critical for ensuring equitable access. Finally, a clear, well-communicated transition plan will be necessary to avoid public resistance and confusion.

Although the relationship between vehicle bans and pollution levels is complex, studies suggest a strong positive correlation between reduced fossil fuel usage and air quality improvements. However, establishing a direct causal link requires long-term monitoring and consideration of other urban factors, such as industrial activity and seasonal wind patterns.

Toward a Greener, Healthier Capital

Hanoi’s ambitious timeline to phase out gasoline vehicles signals a bold commitment to environmental protection and sustainable urban development. While the policy may generate initial friction particularly among vulnerable populations it represents a necessary pivot in the face of growing ecological and infrastructural challenges. The path forward must include inclusive planning, targeted subsidies, and rapid public transit enhancement to ensure the transition does not leave the city’s most reliant commuters behind.

With nearly 7 million fossil-fueled vehicles impacted and the deadline fast approaching, Hanoi stands at a critical juncture: either lead the green mobility transition with equity and foresight or face continued environmental degradation and urban dysfunction.

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Add to Favorites

Gerik

Economic

Trump Escalates Trade Offensive with New Tariff Threats

President Donald Trump has intensified his protectionist trade strategy, launching a new wave of tariff threats just weeks before the August 1 deadline. In the past week alone, the administration has sent over 20 letters to foreign governments, warning of punitive tariffs if trade deals are not reached in time.

Back in April 2025, Trump announced a base tariff of 10%, along with additional levies of up to 50% on a wide range of goods. Implementation was initially postponed amid market panic. With the 90-day reprieve expiring this week, Trump has now revived his hardline stance, with tariffs slated to take effect in August unless negotiations succeed.

Countries Scramble to Negotiate Amid Uncertainty

Nations worldwide are rushing to reach agreements before the August 1 deadline. Canada, for instance, faces a 35% tariff despite ongoing talks, while Japan, South Korea, and several Southeast Asian countries have been warned of duties of at least 25%.

Trump also announced steep tariffs on Brazil, even though it runs a trade deficit with the U.S., sparking retaliation threats from President Lula da Silva. The European Union (EU) is likewise under pressure, with a potential 50% tariff hanging over its exports. A framework agreement between the U.S. and EU is reportedly in the works to avoid further escalation.

Industry-Specific Tariffs Add Fuel to the Fire

In addition to country-level duties, Trump has proposed sector-specific tariffs, including an eye-catching 200% tariff on imported pharmaceuticals. A 50% tariff on copper will also take effect on August 1, aiming to support domestic industries vital to defense, electronics, and automotive sectors. Copper prices in the U.S. spiked following the announcement, reflecting market concerns about supply disruptions.

Treasury Secretary Scott Bessent reported that customs revenue in June 2025 reached a record $27.2 billion quadruple the amount collected in the same month a year earlier. In the current fiscal year, tariff collections have already exceeded $100 billion, positioning them as the fourth-largest revenue stream after personal and corporate income taxes.

Bessent projected that at the current pace, tariff revenues could reach $300 billion by the end of 2025, particularly once the new 50% copper tariff and other measures come into full force.

Economic Risks Loom Despite Short-Term Gains

While Trump claims markets have “responded positively” to the tariffs citing record stock market highs this week economists caution that overreliance on tariff income is unsustainable. Businesses and consumers are likely to adapt to avoid tariffs, diminishing future collections. Furthermore, protectionist measures could disrupt supply chains, drive up production costs, and provoke retaliatory tariffs.

In Asia, U.S. Secretary of State Marco Rubio is currently touring the region, promising “better deals” to strategic partners. Yet skepticism remains high. Malaysian Prime Minister Anwar Ibrahim publicly criticized the new tariffs during the ASEAN Foreign Ministers’ Meeting, signaling growing discontent among emerging economies.

President Trump’s sweeping tariff campaign may be reshaping the global trade landscape. While it has bolstered short-term U.S. customs revenue and political leverage, it risks reigniting trade conflicts and slowing global economic recovery. As the August 1 deadline approaches, all eyes are on Washington and its trade partners to see whether diplomacy or confrontation will prevail.

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Gerik

Economic

China–U.S. Trade War

Market Overview: A Shift in Crude Oil Preferences

India, one of the world’s largest oil importers, has begun to subtly reconfigure its energy supply chain. According to data from S&P Global Commodity Insights, India’s crude oil imports from the U.S. surged 51% year-on-year to 271,000 barrels per day (bpd) during the first six months of 2025. Imports from Brazil jumped even more by 80% to 73,000 bpd marking the fastest growth among all suppliers. This shift indicates a growing preference for Atlantic Basin suppliers as part of a broader strategy to diversify away from traditional sources in OPEC+ and Russia.

At the same time, Russia remains India’s top oil supplier, delivering 1.67 million bpd. However, that figure shows signs of plateauing, signaling that Moscow's dominance might be entering a phase of stagnation in this crucial BRICS partner market.

Strategic Drivers: Diversification and Flexibility

The motivation behind India’s evolving oil import strategy is twofold: supply security and price stability. State-owned refiners are deliberately expanding their supplier base to reduce vulnerability to OPEC+ production cuts or geopolitical instability in the Middle East. With freight costs from the Atlantic Basin trending lower and real-time spot transactions becoming more attractive, U.S. and Brazilian oil is becoming more competitively priced.

The timing also aligns with geopolitical conditions. As China has scaled back purchases of U.S. crude, India has taken advantage of increased availability and better bargaining power. This flexibility has enabled Indian refineries to secure more favorable terms in the spot market without long-term political entanglements.

Geopolitical Undercurrents: From Trade to Energy Diplomacy

Energy diplomacy has also played a significant role. Indian Oil Minister Hardeep Singh Puri met with Brazilian energy leaders earlier this year, and Indian Prime Minister Narendra Modi’s visit to Washington in April 2025 placed bilateral energy cooperation at the top of the agenda. The uptick in U.S. crude imports appears to serve a dual function securing energy supply and signaling goodwill in sensitive tariff negotiations with the United States.

The temporary 90-day tariff suspension on certain goods, effective since April, is set to expire in August. Energy trade, particularly oil, is emerging as a key bargaining chip in these discussions, reinforcing the strategic value of India’s import diversification.

Implications: Beyond the Barrel

India’s evolving crude import profile highlights a quiet but significant rebalancing of global oil flows. While Russia still leads in volume, its slowing growth, combined with India’s proactive outreach to the Western Hemisphere, suggests a long-term realignment. Iraq and Saudi Arabia have seen their shares decline slightly, while Nigeria has seen a 26% gain, reaching 158,000 bpd, further emphasizing India’s broader diversification effort.

Looking forward, if transportation costs remain favorable and geopolitical uncertainty persists, India is likely to continue increasing crude imports from outside OPEC+, positioning itself not only as a more resilient energy consumer but also as a strategic negotiator on the global trade stage.

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Gerik

Economic

Wealth Grows with Age: The Intergenerational Divide

According to the study, based on Deutsche Bundesbank data, the median net worth of German households stood at €103,100 in 2023. This median figure unlike the mean provides a more balanced view by mitigating the effect of extreme wealth at the top. The top 10% of households, for instance, reported a median wealth of €777,200, underscoring the level of concentration at the upper end of the spectrum.

A striking trend emerged when breaking the data down by age. Households under 35 held a median net worth of just €17,300, in stark contrast to the €241,100 held by those aged 55–64 the wealthiest age bracket. The reason for this gap is clear: wealth accumulation takes time, and many young people are still in the early stages of their careers or burdened with educational loans. Notably, even those over 75 maintained a relatively high median net worth of €172,500, suggesting that asset preservation among the elderly remains robust.

Assets, Not Income, Drive Wealth

The study, based on a survey of around 4,000 private households, analyzed net wealth, which includes all assets (real estate, financial holdings, valuables, vehicles, business assets) minus debts. It confirmed that homeownership plays a critical role in building long-term wealth. Fewer than 10% of Germans under 35 own property, while more than 50% of those aged 55–64 do. This trend not only reflects the financial constraints of young adults but also the compounding benefits of long-term homeownership.

Maximilian Stockhausen, a co-author of the study, emphasized that if the German government wants to promote private wealth accumulation, it should reduce the tax burden on earned income. Allowing workers to retain more of their take-home pay would improve their ability to save and invest.

A Wealthy Nation, But Unevenly So

While Germany’s middle class has shown substantial asset growth, the data highlights a clear generational wealth divide. Older households continue to consolidate wealth, often via property ownership and long-term financial planning. Meanwhile, younger Germans are struggling to accumulate assets at the same pace, limited by lower starting capital and limited access to real estate.

As debates over intergenerational fairness, housing affordability, and tax reforms continue in Germany, the study provides vital insights into how wealth is built and who is being left behind.

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Gerik

Economic

Dimon: Market Too Complacent on Fed Policy

In a stark warning to investors, Jamie Dimon, the long-serving CEO of JPMorgan Chase, emphasized that the risk of the U.S. Federal Reserve raising interest rates remains underappreciated by financial markets. While current forecasts suggest only a 20% probability of further rate hikes, Dimon estimates the chance to be nearly double between 40% and 50%. He described this as a “worrying” scenario that could catch markets off guard.

Dimon’s remarks, made during an event hosted by Ireland’s Department of Foreign Affairs, underline his growing concern that the financial sector is becoming too comfortable despite persistent economic threats.

Persistent Inflation: A Multifaceted Threat

The Fed recently decided to keep its benchmark interest rate steady at 4.25%–4.5%, even as Chair Jerome Powell cautioned about “significant” inflationary risks ahead. One such risk comes from President Donald Trump's aggressive tariff proposals, which are likely to raise consumer prices on imported goods.

Dimon pointed to several structural drivers behind the inflation threat, including trade policy shifts, rising government deficits, and tighter immigration controls all of which can restrict supply and push prices higher. He also cited long-term global trends such as demographic shifts and the restructuring of international supply chains, noting their tendency to fuel inflationary momentum.

Data Uncertainty and the Challenge of Real-Time Insight

As head of the largest U.S. bank by consumer deposits holding 11.3% of personal bank deposits Dimon has access to vast pools of transactional data. Yet, he described the current stream of economic information as “nearly unreadable,” illustrating the difficulty of forecasting in today’s volatile environment.

This ambiguity in economic signals, he implied, makes it even more dangerous for markets to assume that the current monetary policy trajectory is fixed or safe from change.

Fed Under Pressure, Trump Escalates Criticism

The pressure on the Federal Reserve is mounting from both sides. While Powell maintains a cautious stance against inflation, President Trump has called for an immediate and aggressive interest rate cut, going so far as to demand Powell’s resignation. This political pressure adds a further layer of uncertainty for market participants who must now weigh both economic fundamentals and policy unpredictability.

Dimon’s comments serve as a reminder that financial markets may be underestimating the stickiness of inflation and the possibility of further Fed tightening. With major geopolitical shifts underway and economic data harder than ever to interpret, his warning should not be ignored. The potential for renewed rate hikes remains real and for investors, failing to prepare for that possibility could prove costly.

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Gerik

Economic

Strong Quarter Anticipated for Wall Street Banks

America’s largest banks are set to post impressive second-quarter profits, marking a notable recovery in investment banking and trading segments. According to analysts, the earnings season kicking off with JPMorgan Chase, Citigroup, and Wells Fargo is likely to reflect solid revenue growth fueled by improved deal flow and market activity.

Stephen Biggar of Argus Research noted that “most banks are likely to beat expectations” in a quarter with no major surprises. The optimism stems from the late-quarter acceleration in investment banking activity, especially after a sluggish start due to tariff-related uncertainty and geopolitical tensions that had previously suppressed M&A transactions to their lowest levels in two decades.

Investment Banking and Trading Recovery

Betsy Graseck of Morgan Stanley highlighted that investment banking revenue is expected to exceed forecasts, driven by a healthier deal pipeline. Executives at Bank of America and Citigroup echoed this sentiment, projecting mid-to-high single-digit revenue increases in trading, citing persistent macro and geopolitical volatility as ongoing catalysts for market activity.

Goldman Sachs analysts also anticipate sustained trading strength in the near term, attributing it to investor repositioning amid global instability.

Net Interest Income and Credit Quality Remain Solid

While loan demand remains relatively subdued, net interest income (NII) across the sector is projected to rise modestly between low to mid-single-digit percentages thanks to favorable interest margins. Furthermore, banks are expected to reduce their provisions for credit losses, reflecting continued resilience in consumer and corporate credit quality.

Wells Fargo analyst Mike Mayo raised his loan growth forecast for the industry from 3% to 5%, signaling potential momentum in lending activities. Still, he cautioned that sustainability remains a key question for investors tracking the sector’s forward outlook.

Regulatory Tailwinds and Capital Deployment

Another earnings driver is the relaxed regulatory environment under President Trump’s administration. Following their successful completion of the Federal Reserve’s stress tests, banks now have greater freedom to allocate excess capital toward dividends and share buybacks an area under close investor scrutiny.

The lifting of Wells Fargo’s asset cap, in particular, could usher in renewed growth initiatives, while Morgan Stanley’s CEO transition has been smooth, with Ted Pick now poised to pursue more ambitious strategic goals.

Individual Bank Forecasts

JPMorgan Chase: EPS is expected to grow 5%, with attention on net interest income, loan growth, and progress in its stablecoin project.

Bank of America: Projected EPS increase of nearly 4%, with NII up almost 7%. However, investment banking fees are set to decline to around $1.2 billion.

Citigroup: EPS is expected to rise 5%, driven by capital market strength. Costs and provisions may be higher than forecast, though analysts remain bullish.

Wells Fargo: Operating expenses are projected to dip slightly due to headcount reductions. Loan balances should rise modestly, with flat provisions.

Goldman Sachs: EPS is forecasted to jump nearly 11%, benefiting from growth in investment banking and trading revenue.

Morgan Stanley: EPS may increase over 7%, with investors awaiting updates on the rebound in investment banking. CEO Ted Pick is viewed as well-positioned to enhance brand value and market share.

Despite headwinds from trade policy uncertainty and political transitions, U.S. banks are expected to deliver a strong earnings season. With improving conditions in investment banking, resilient NII, and solid credit performance, the sector appears poised for cautious optimism so long as global instability does not derail the momentum.

Source: Rueters

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Gerik

Economic

Cryptocurrency

EU Raises the Bar on Crypto Investor Protection

In the latest development under the European Union’s Markets in Crypto-Assets (MiCA) framework, ESMA has warned crypto asset service providers (CASPs) against misrepresenting the scope of regulation to customers. Specifically, the agency is concerned about platforms that offer both regulated and unregulated products without clearly distinguishing between them.

ESMA emphasized that such practices pose “investor protection risks,” as customers may mistakenly believe all services fall under MiCA's investor safeguards. These include mandatory asset custody protections and formal complaint-handling processes, intended to create a safer investment environment within the EU crypto space.

Misuse of Regulatory Status as a Marketing Tool

The regulator took particular issue with CASPs using their MiCA-regulated status as a marketing gimmick. According to ESMA, some providers intentionally promote regulated registration to give the illusion that all products offered are covered, even when some services like direct investments in commodities (e.g. gold) or crypto lending remain outside MiCA’s scope.

ESMA stressed that regulatory approval should not be used as a promotional badge, and any insinuation that all products are MiCA-compliant when they are not could mislead consumers and potentially violate EU rules.

The FTX Fallout and Regulatory Vigilance

The warning comes amid lingering regulatory concerns following the 2022 collapse of FTX, which exposed massive gaps in oversight and resulted in billions in investor losses. Regulators worldwide have since tightened scrutiny on crypto firms, with the EU emerging as a global leader in formalized crypto oversight through MiCA.

Under MiCA, CASPs must obtain regulatory approval from a national authority before gaining “passporting” rights to operate across the EU. This cross-border access adds urgency to ensuring that licensing and supervision standards are consistent and robust.

Spotlight on Malta’s Licensing Standards

Coinciding with ESMA’s statement, the agency released a peer review of Malta’s crypto licensing process. The report noted that while Malta’s financial services authority has the expertise and resources to handle crypto licensing, the risk assessment procedures for at least one unnamed firm were only “partially satisfactory.”

Although Malta has often been viewed as a pioneer in digital asset regulation, the review signals that ESMA will continue to evaluate the quality and consistency of member states' regulatory frameworks.

A Clearer, Stricter Future for EU Crypto Markets

With MiCA now in effect, the EU is enforcing a firmer line on how crypto firms operate and market themselves. ESMA’s warning serves as a reminder that regulation is not just a legal formality but a trust-building measure. Firms attempting to blur regulatory boundaries or exploit partial compliance for competitive advantage risk reputational damage and legal consequences.

As the regulatory ecosystem evolves, consistent enforcement across EU nations will be key to maintaining market integrity and investor confidence. Crypto companies hoping to operate across Europe must now align not only with technical compliance but also with a culture of transparency and accountability.

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites