It was a week of significant geopolitical and corporate developments, dominated by a major shift in US defense policy and a high-stakes diplomatic meeting in Asia.
President Donald Trump ordered the resumption of nuclear weapons testing for the first time in three decades just before meeting with Chinese President Xi Jinping.
In the tech world, a landmark settlement was reached between Universal Music Group and an AI startup, while in the markets, gold prices rebounded on uncertainty over the Federal Reserve’s future interest rate path.
Here’s your one-stop stand to catch up on all the headlines you may have missed.
Trump orders resumption of nuclear testing after 30-year hiatus
President Donald Trump has directed the US military to resume the testing of nuclear weapons, ending a moratorium that has been in place since 1992.
In a social media post made just before his meeting with President Xi, Trump cited the testing programs of other nations as the reason for the policy shift.
“Because of other countries testing programs, I have instructed the Department of War to start testing our Nuclear Weapons on an equal basis,” he wrote.
Trump stated that while the US has the world’s largest nuclear arsenal, he had “no choice” but to modernize it to keep pace with Russia and a rapidly advancing China.
The last US nuclear test, codenamed “Divider,” took place at an underground facility in Nevada on September 23, 1992.
The president did not provide specific details on how or where the new tests would occur but said the “process will begin immediately.”
Universal Music and AI startup Udio settle lawsuit, announce partnership
Universal Music Group has settled its copyright lawsuit with the artificial intelligence music startup Udio, the two companies announced Wednesday.
In a landmark agreement, the settlement paves the way for a new commercial collaboration. Udio is set to launch a new AI-powered music creation and streaming service next year, which will be trained on licensed music from Universal’s vast catalog of artists.
According to the statement, Universal’s artists, including stars like Taylor Swift and Billie Eilish, will be compensated through the settlement, and new licensing agreements will create ongoing revenue opportunities.
“These new agreements with Udio demonstrate our commitment to do what’s right by our artists and songwriters,” said Lucian Grainge, CEO of Universal Music.
Trump concludes Asia tour after key meeting with Xi Jinping
President Donald Trump departed South Korea on Thursday, concluding a 10-day trip through Asia that was capped by his first face-to-face meeting with Chinese President Xi Jinping since 2019.
After a one-hour-and-forty-minute meeting in Busan, Trump boarded Air Force One to return to Washington. The White House has not yet released specific details of the discussions.
The meeting was seen as a critical opportunity to stabilize relations between the world’s two largest economies after months of tension over trade and technology.
In a social media post before departure, the White House said, “This week, the President secured billions in new investment, ended a war, inked multiple trade and minerals deals, met with President Xi, and more.”
Gold recovers as Fed divisions cloud interest rate outlook
Gold prices rebounded after four consecutive sessions of losses, as traders grappled with uncertainty over the US Federal Reserve’s next moves. Bullion rose as much as 0.9% to trade near $3,967 an ounce.
The recovery followed comments from Fed Chair Jerome Powell, who downplayed the likelihood of a December rate cut after the central bank delivered an expected quarter-point reduction on Wednesday.
However, the Fed’s vote revealed deep divisions, with dissents lodged for the third straight meeting.
This lack of consensus, combined with a scarcity of official economic data due to the US government shutdown, has made it difficult for investors to predict the future path of monetary policy. Higher interest rates are typically a negative for non-yielding gold.
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