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Inflation likely moved higher last month as tariffs bite, putting the Fed in bind

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Federal Reserve Chairman Jerome Powell, speaks during a news conference following the Federal Open Market Committee meeting on July 30 in Washington. (AP)

WASHINGTON, Aug 12, (AP): Inflation likely ticked up in July for the third straight month as tariffs lift the cost of imported goods such as furniture, appliances, and toys, which could make it harder for the Federal Reserve to cut short-term interest rates as President Donald Trump has demanded. Consumer prices are forecast to have risen 2.8% in July from a year earlier, according to a survey of economists by data provider FactSet.

That annual pace would be up from 2.7% in June and a post-pandemic low of 2.3% in April. Excluding volatile food and energy costs, core inflation is expected to rise to 3%, from 2.9% in June. Both figures are well above the Fed’s 2% price target. The potential increases, while modest, would put the Fed in a difficult spot: Hiring slowed sharply in the spring, after Trump announced a sweeping set of tariffs in April.

The stalling out of job gains has boosted financial market expectations for an interest rate cut by the central bank. Yet Fed chair Jerome Powell has warned that worsening inflation could keep the Fed on the sidelines – a stance that has enraged Trump, who has defied traditional norms of central bank independence and demanded lower borrowing costs.

  Tuesday’s data will also arrive at a highly-charged moment for the Labor Department’s Bureau of Labor Statistics, which collects and publishes the inflation data. Trump fired Erika McEntarfer, then the head of BLS, after the Aug. 1 jobs report also showed sharply lower hiring for May and June than had previously been reported.

The president posted on social media Monday that he has picked E.J. Antoni, an economist at the conservative Heritage Foundation and a frequent critic of the jobs report, to replace McEntarfer. “E.J. will ensure that the Numbers released are HONEST and ACCURATE,” Trump said on Truth Social. Adding to the BLS’s turmoil is a government-wide hiring freeze that has forced it to cut back on the amount of data it collects for each inflation report, the agency has said.

UBS economist Alan Detmeister estimates that BLS is now collecting about 18% fewer price quotes for the inflation report than it did a few months ago. He thinks the report will produce more volatile results, though averaged out over time, still reliable. On a monthly basis, prices are expected to rise modestly, increasing just 0.2% from June to July and core prices rising 0.3%. Gas prices likely fell in July and grocery costs are expected to barely increase, muting overall inflation. 

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Gulf Bank Concludes Successful Participation in University Admission Fairs at ‎Kuwait University and Abdullah Al-Salem University

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KUWAIT CITY, Aug 12: As part of its ongoing commitment to supporting education and empowering Kuwaiti ‎youth, Gulf Bank has successfully concluded its distinguished participation in the ‎university admission fairs at Kuwait University and Abdullah Al-Salem University. The ‎Bank actively engaged with new students, introducing them to its tailored banking ‎solutions designed specifically for young people.‎

Gulf Bank took part in the interactive admission fair held at Kuwait University’s Sabah ‎Al-Salem University City in Al-Shadadiya from 19 to 29 July 2025. The Bank’s booth ‎attracted a high turnout from students and parents, who showed great interest in the ‎banking services designed for university students.‎

Similarly, the Bank participated in the admission fair hosted by Abdullah Al-Salem ‎University at its Khaldiya campus from 6 to 17 July 2025. Gulf Bank’s presence ‎featured direct interaction with visitors, providing comprehensive information on ‎student accounts and other tailored services.‎

These participations are part of Gulf Bank’s continuous efforts to strengthen ‎engagement with youth and support them in the early stages of their academic journey. ‎Alongside sharing information on academic majors and admission processes, the ‎Bank also offered financial tips to help students manage their resources effectively ‎from the start of their university life.‎

At both events, Gulf Bank showcased its red account, one of its leading banking ‎solutions designed for customers aged 15 to 25. The account offers a wide range of ‎benefits, including prepaid cards, exclusive discounts, rewards on purchases, and ‎access to unique events and experiences that enrich both personal and professional ‎growth. ‎

Beyond its features, the red account serves as a platform to promote financial literacy ‎among youth, equipping them with the knowledge and skills to make informed ‎financial decisions early in life – positively shaping their future and fostering a ‎generation that is financially aware and capable of managing resources effectively.‎

Gulf Bank’s team expressed pride in supporting students throughout their high school ‎and university years, offering innovative banking services designed to keep pace with ‎their fast-paced lifestyles.‎

Gulf Bank concluded its participation by thanking the administrations of both ‎universities for organizing the fairs, which serve as valuable platforms to connect with ‎youth. The Bank reaffirmed its commitment to continuing its support for educational ‎and youth initiatives that contribute to Kuwait’s development and enhance the quality ‎of life for its students and community.‎

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Menzies Aviation set to expand MASIL operations at Mosul International Airport

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KUWAIT / LODNON, Aug 12:  Menzies Aviation, the leading service partner to the world’s airports ‎and airlines, has announced it will deliver ground, air cargo and fuelling services at Mosul ‎International Airport (OSM) in Iraq through MASIL, its joint venture with Iraqi Airways, Air BP and ‎Al-Burhan Group.‎

One fully operational, MASIL will provide a full suite of aviation services at OSM, under a new ‎‎10-year license, further strengthening its footprint in the region. This builds on MASIL’s ‎operations at Baghdad International Airport (BGW).‎

MASIL provided ground services for the presidential flight that signified the official reopening of ‎OSM. The flight, attended by Iraq’s Prime Minister Mohammed Shia’ Al Sudani, represented a ‎landmark moment in the airport’s history, which has been non-operational since 2014.‎

The milestone underscores the joint venture’s capabilities and readiness to support future air ‎traffic at the revitalised airport.‎

Mosul International Airport has undergone extensive reconstruction and is now equipped with a ‎main terminal, VIP lounge, and advanced radar surveillance system. The airport is expected to ‎be fully operational within the coming months, supporting both domestic and international flights ‎and handling an estimated 630,000 passengers annually.‎

The expansion marks a significant milestone in the continued growth of the MASIL joint venture ‎across Iraq and demonstrates Menzies’ commitment to supporting the country’s aviation ‎infrastructure and long-term development.‎

Charles Wyley, Executive Vice President Middle East, Africa and Asia, Menzies Aviation, ‎said: “We’re proud to expand our presence in Iraq with new operations at Mosul International ‎Airport through our MASIL joint venture. This is a major step in our journey to support the ‎redevelopment of Iraq’s aviation sector and bring world-class standards to the country’s airports. ‎Handling the presidential flight was a privilege and a clear signal of MASIL’s professionalism and ‎reliability as a trusted service provider.”‎

Menzies Aviation and Iraqi Airways formed MASIL in 2021 to provide ground handling, cargo, ‎and fuelling services. The joint venture includes operations at key airports including Baghdad and ‎will soon include Mosul, as it continues to support the modernisation of Iraq’s aviation sector.‎

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Kamco Invest reports a net profit of KWD7.1mn for the ‎first half of 2025‎

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Kuwait City, 12August2025: Kamco Invest, a regional non-banking financial powerhouse with one of the ‎largest AUMs in the region, announced its financial results for the six-month periodended30June2025. The ‎Company reported a net profit of KWD7.1mn (EPS:20.72fils) compared toKWD2.5mn during the same ‎period in 2024 (EPS:7.26fils).‎

Total revenue stood atKWD19.0mn, an increase of 48.2% compared to the same period of 2024, whereas ‎fee and commission income reached KWD7.5mn (6M 2024: KWD8.1mn).The rise in total revenue was ‎primarily driven by the performance of the Company’s investment portfolio, supported by one-off ‎proceeds from a legal case ruled in the Company’s favor.‎

Assets under management grew by 7.5% to reach USD17.1bn as of 30June 2025, due to new money raised ‎in various products during the period, as well as the performance of portfolios and funds. Kamco Invest ‎maintained its ranking amongst the ten largest asset managers in the MENA region, according to Forbes ‎Middle East. The Company enjoys a strong track record and deep expertise in delivering diverse investment ‎solutions to its clients.‎

Managed portfolios continued to outperform their respective benchmarks, while the Company’s equity ‎funds maintained their positions amongst the top performing funds in Kuwait and Saudi Arabia, based on ‎the fund disclosures published on Boursa Kuwait and Tadawul websites.‎

As forAlternative Investments, which includes real estate, private equity and structured products, the team ‎continued to expand its range of offerings to provide clients with added value. During the period, Kamco ‎Invest finalized the acquisition of a 60% majority stake in European Green Logistics Space (EGLS), a ‎company specializing in the development, investment, and management of logistics assets in Europe. This ‎acquisition reflects Kamco Invest’s commitment to growing its recurring fee income while unlocking value-‎adding opportunities for regional clients in the sustainable logistics sector.‎

Furthermore, the Company successfully exited its investment in Yargici, a leading Turkish fashion and ‎accessories brand held by one of Kamco Invest’s private equity funds, through a sale to TIMS Group, a ‎diversified Turkish business group with operations in content production, tourism, construction, and land ‎development. The exit highlights Kamco Invest’s commitment to delivering long-term value to its clients ‎while ensuring the continued growth and success of its portfolio companies.‎

The Investment Banking team continued to advise clients on several transactions across equity capital ‎markets, debt capital markets, and M&A, with deals expected to close during the year. During the six-‎month period, the team advised OSN Group on the sale of a 30% stake of its subsidiary, OSN Streaming ‎Ltd., to Warner Bros. Discovery for USD57mn. The team also acted as Joint Lead Manager on five bond ‎and sukuk issuances totaling USD2.3bn for regional banks and institutions across Kuwait, Saudi Arabia, ‎UAE, and Qatar.‎

First Securities Brokerage Company, Kamco Invest’s brokerage arm, continued to strengthen its ‎competitive position and attracted new clients through its online trading platforms. ‎

Kamco Invest -Saudi and Kamco Invest – DIFC continued to strengthen their presence in their respective ‎markets by improving their services and contributing more to the company’s core businesses, particularly ‎in asset management. Kamco Invest – Saudi signed a strategic partnership with Flexam Invest to offer ‎leasing opportunities to their clients. Furthermore, Kamco Invest – Saudi completed the fit-out of its new ‎premises in the King Abdullah Financial District (KAFD), with the official move taking place in July 2025.‎

Kamco Invest was awarded the “Kuwait’s Best for Alternative Investments” at the Euromoney Private ‎Banking Awards 2025, highlighting the Company’s rapid growth and sustained success in the alternatives ‎space. In addition, Kamco Invest was named “Kuwait’s Best Investment Bank – DCM” at the Euromoney ‎Awards for Excellence 2025, in recognition of the team’s outstanding performance in executing bond and ‎sukuk transactions for local and regional clients.‎

Total assets increased by 4.4% during the period to reachKWD135.5mn, whereas shareholders’ equity rose ‎by 8.7%toKWD67.7mn. The Company also enjoys a strong financial position and a “BBB” long-term credit ‎rating and “A3” short-term rating with stable outlook by Capital Intelligence in their latest review in May2025. ‎

Commenting on the results, Sheikh Talal Ali Abdullah Al Jaber Al Sabah, Chairman, said, “Our performance ‎in the first half of 2025 highlights the resilience of our strategy and the strength of our diversified business ‎model. We are well positioned to navigate market dynamics and grow our business while continuing to ‎deliver value to our shareholders.”‎

Faisal Mansour Sarkhou, Chief Executive Officer, commented, “We delivered solid growth during the six-‎month period on various fronts including assets under management and achieved strong returns across our ‎investment portfolios. Strategic developments, such as the acquisition of a majority stake in EGLS, ‎demonstrate our focus on long-term value creation. We remain committed to enhancing our offerings, ‎expanding our regional footprint, and delivering sustainable growth for our clients and stakeholders.”‎

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