Wall Street posted its worst day since 2022 on Monday, after Asian stocks and European shares ended trading in the red, as the global stock rout deepened over mounting fears of a US recession and a wider war in the Middle East.
Equities gauges across Asia dropped on the first trading session of the week, after a continued slide in US stocks caused by weak employment figures released last week.
Japan’s Nikkei Index dropped 12.4 per cent as of 5.40pm UAE time. The Hang Seng Index in Hong Kong slipped 1.46 per cent while India's S&P BSE Sensex Index dropped by 2.74 per cent.
The technology-heavy markets of Taiwan and Korea also took a hit.
The Dubai Financial Market’s main equities gauge slipped 4.5 per cent while the Abu Dhabi Securities Market fell by 3.4 per cent. Saudi Arabia’s Tadawul, the biggest Arab bourse, declined by 2.1 per cent.
We are going to see a much deeper decline
Naeem Aslam,
chief financial officer, Zaye Capital Markets
The GCC markets, which remained muted last week, are reacting to the possibility of a full-blown military conflict amid troubles brewing on the global economic horizons.
The rise of tension in the Middle East is an added worry for regional investors, who are bracing for the impact if the Israel-Gaza war spills beyond borders and turns into a regional conflict.
“Conflict between Israel and Iran already spans multiple countries, including Iraq, Lebanon, Syria and Yemen … [however] a full interstate war with Iran would lack a clear and achievable goal,” said Hasnain Malik, head of emerging markets strategy at Tellimer, an investment research company in Dubai.
“The GCC, geographically in between, is loath to be dragged in, given the vulnerability of its oil and gas infrastructure to [a] missile attack.”
Iran and militant group Hezbollah in Lebanon could begin attacking Israel as early as Monday, US Secretary of State Antony Blinken told foreign ministers from the G7, Axios reported.
The report follows Mr Blinken's conference call to co-ordinate with US allies to put pressure on Iran and Hezbollah to reduce the scale of any retaliation after last week's killing of senior Hamas official Ismail Haniyeh in Tehran and Hezbollah commander Fouad Shukr in Beirut.
Dow and Nasdaq plunge as US recession fears grow
Wall Street continued its decline on Monday after weak employment data led to renewed fears that the world's largest economy is headed for a recession.
The Dow fell 1033.99 points – or 2.6 per cent – as trading closed in the US, while the Nasdaq dropped 3.43 per cent. Both indexes suffered their largest losses in nearly two years. The S&P 500 fell 3 per cent.
Wall Street's fear gauge, the CBOE Volatility Index, rose to its highest level since March 2020.
Causing the recent slide were two employment reports last week, and a Labour Department report that showed the economy added a weaker-than-expected 114,000 jobs last month, a steep decline from 179,000 in June.
Meanwhile, the unemployment rate unexpectedly rose to 4.3 per cent, its highest level since October 2021.
The latest unemployment rate crossed the “Sahm Rule” threshold, which typically indicates a coming recession if the three-month average unemployment rate increases by half a percentage point from its low point in the past 12 months.
Equities are in a “risk-off mode”, Khatija Haque, chief economist and head of research at Emirates NBD, said in a note to investors on Monday.
“US employment data for July came in worse than expected, adding to downside risks for the US economy after a raft of weaker economic data recently.”
Asked about the Sahm Rule last week, Federal Reserve chairman Jerome Powell called it a “statistical regularity”.
“It's not like an economic rule where it's telling you something must happen,” he said.
Mr Powell said some members of the policy-setting Federal Open Market Committee wanted to cut interest rates last month but a “strong majority” were in favour of keeping rates steady.
A September interest rate cut has been all but locked in by traders after the Federal Reserve left its target rate unchanged at 5.25 per cent to 5.50 per cent last week.
Investors now price in a 92.5 per cent probability the Fed will cut rates by 50 basis points when they next meet, according to the CME FedWatch tool.
By holding rates for too long, the Fed risks the possibility of accidentally steering the economy into a recession and driving up unemployment.
Mr Powell has said the Fed is well-positioned to respond to weakness in the labour market with its current interest rate level.
And speaking to CNBC on Monday, Chicago Fed president Austan Goolsbee – who is not a voting member on the FOMC this year – said the Fed would fix the economy if it crumbles.
“If the conditions collectively start coming in like that on the through line, there’s deterioration on any of those parts, we’re going to fix it,” Mr Goolsbee told CNBC's Squawk Box.
Traders are also increasing bets that the Fed will deliver an emergency rate cut before its September meeting, although that is a measure the US central bank has rarely used in recent decades.
Japan's Topix Index plunges after US recession fears
Meanwhile, demand for flights out of Lebanon has surged as foreigners seek to leave amid fears of an all-out war between Hezbollah and Israel.
Beirut's main airport was packed on Sunday night with travellers seeking last-minute tickets after the US, France, the UK and other governments urged their citizens to leave.
“The biggest question is geopolitics, what's happening with Iran. I think the markets are very, very sensitive,” said Naeem Aslam, chief financial officer at London-based Zaye Capital Markets.
“If you look at the volatility index, it rose above 27 on Friday and the Nasdaq futures are already down by about 6 per cent, indicating that we are going to see a much deeper decline.”
The MSCI Asia Pacific Index plunged as much as 3.8 per cent, after a similar drop on Friday.
Monday’s slump has brought the regional equity benchmark close to losing its gains for the year. It has dropped about 10 per cent from its peak of July 11, signalling a technical correction, according to Bloomberg data.
As bond traders started to bet on a deeper cut to interest rates by the Fed, analysts in Europe said the European Central Bank would slash rates by at least 0.5 per cent by the end of the year.
European stocks fall
Stocks in London also slumped more than 2 per cent on Monday morning, as recession fears caused a flight to haven assets in the UK and European markets.
“London markets haven’t escaped the Monday meltdown, with just a handful of companies on the FTSE 100 opening on the front foot and a smorgasbord of sectors losing ground, including miners and oil giants,” said Danni Hewson, head of financial analysis at AJ Bell.
The “torrid” opening to the London market on Monday indicates the “global waves of unease”, said Richard Hunter, head of markets at Interactive Investor.
“Half-hearted moves into defensive stocks provided brief respite … but overall the markdown was widespread,” he said.
Stocks with a particular exposure to the US such as Pershing Square and Scottish Mortgage topped the loser board with losses of more than 8 per cent and 7 per cent, respectively.
Banks also suffered, with the likes of Barclays and NatWest declining by 5 per cent in “something of a read across from the Wall Street experience”, Mr Hunter said.
In Europe, the Stoxx Europe 600 Index fell by as much as 3.2 per cent, its largest intraday decline since March 2022.
The CAC-40 in Paris is now 10 per cent off its recent highs, which is the textbook definition of a market correction.
SAUDI RESULTS
Team Team Pederson (-40), Team Kyriacou (-39), Team De Roey (-39), Team Mehmet (-37), Team Pace (-36), Team Dimmock (-33)
Individual E. Pederson (-14), S. Kyriacou (-12), A van Dam (-12), L. Galmes (-12), C. Hull (-9), E. Givens (-8),
G. Hall (-8), Ursula Wikstrom (-7), Johanna Gustavsson (-7)
More Expo 2020 Dubai pavilions:
Bharatanatyam
A ancient classical dance from the southern Indian state of Tamil Nadu. Intricate footwork and expressions are used to denote spiritual stories and ideas.
MATCH INFO
Quarter-finals
Saturday (all times UAE)
England v Australia, 11.15am
New Zealand v Ireland, 2.15pm
Sunday
Wales v France, 11.15am
Japan v South Africa, 2.15pm
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Company profile
Name: Fruitful Day
Founders: Marie-Christine Luijckx, Lyla Dalal AlRawi, Lindsey Fournie
Based: Dubai, UAE
Founded: 2015
Number of employees: 30
Sector: F&B
Funding so far: Dh3 million
Future funding plans: None at present
Future markets: Saudi Arabia, potentially Kuwait and other GCC countries
The specs
Engine: 1.5-litre 4-cyl turbo
Power: 194hp at 5,600rpm
Torque: 275Nm from 2,000-4,000rpm
Transmission: 6-speed auto
Price: from Dh155,000
On sale: now
Moral education needed in a 'rapidly changing world'
Moral education lessons for young people is needed in a rapidly changing world, the head of the programme said.
Alanood Al Kaabi, head of programmes at the Education Affairs Office of the Crown Price Court - Abu Dhabi, said: "The Crown Price Court is fully behind this initiative and have already seen the curriculum succeed in empowering young people and providing them with the necessary tools to succeed in building the future of the nation at all levels.
"Moral education touches on every aspect and subject that children engage in.
"It is not just limited to science or maths but it is involved in all subjects and it is helping children to adapt to integral moral practises.
"The moral education programme has been designed to develop children holistically in a world being rapidly transformed by technology and globalisation."
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Sly%20Cooper%20and%20the%20Thievius%20Raccoonus
%3Cp%3E%3Cstrong%3EDeveloper%3A%3C%2Fstrong%3E%20Sucker%20Punch%20Productions%3Cbr%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20Sony%20Computer%20Entertainment%3Cbr%3E%3Cstrong%3EConsole%3A%3C%2Fstrong%3E%20PlayStation%202%20to%205%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%205%2F5%3C%2Fp%3E%0A
Chatham House Rule
A mark of Chatham House’s influence 100 years on since its founding, was Moscow’s formal declaration last month that it was an “undesirable
organisation”.
The depth of knowledge and academics that it drew on
following the Ukraine invasion had broadcast Mr Putin’s chicanery.
The institute is more used to accommodating world leaders,
with Nelson Mandela, Margaret Thatcher among those helping it provide
authoritative commentary on world events.
Chatham House was formally founded as the Royal Institute of
International Affairs following the peace conferences of World War One. Its
founder, Lionel Curtis, wanted a more scientific examination of international affairs
with a transparent exchange of information and ideas.
That arena of debate and analysis was enhanced by the “Chatham
House Rule” states that the contents of any meeting can be discussed outside Chatham
House but no mention can be made identifying individuals who commented.
This has enabled some candid exchanges on difficult subjects
allowing a greater degree of free speech from high-ranking figures.
These meetings are highly valued, so much so that
ambassadors reported them in secret diplomatic cables that – when they were
revealed in the Wikileaks reporting – were thus found to have broken the rule. However,
most speeches are held on the record.
Its research and debate has offered fresh ideas to
policymakers enabling them to more coherently address troubling issues from climate
change to health and food security.
Women & Power: A Manifesto
Mary Beard
Profile Books and London Review of Books
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Winners
Ballon d’Or (Men’s)
Ousmane Dembélé (Paris Saint-Germain / France)
Ballon d’Or Féminin (Women’s)
Aitana Bonmatí (Barcelona / Spain)
Kopa Trophy (Best player under 21 – Men’s)
Lamine Yamal (Barcelona / Spain)
Best Young Women’s Player
Vicky López (Barcelona / Spain)
Yashin Trophy (Best Goalkeeper – Men’s)
Gianluigi Donnarumma (Paris Saint-Germain and Manchester City / Italy)
Best Women’s Goalkeeper
Hannah Hampton (England / Aston Villa and Chelsea)
Men’s Coach of the Year
Luis Enrique (Paris Saint-Germain)
Women’s Coach of the Year
Sarina Wiegman (England)
Bio
Born in Dibba, Sharjah in 1972.
He is the eldest among 11 brothers and sisters.
He was educated in Sharjah schools and is a graduate of UAE University in Al Ain.
He has written poetry for 30 years and has had work published in local newspapers.
He likes all kinds of adventure movies that relate to his work.
His dream is a safe and preserved environment for all humankind.
His favourite book is The Quran, and 'Maze of Innovation and Creativity', written by his brother.
Company%20Profile
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3ENadeera%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Abu%20Dhabi%2C%20UAE%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3ERabih%20El%20Chaar%20and%20Reem%20Khattar%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3ECleanTech%3Cbr%3E%3Cstrong%3ETotal%20funding%3A%3C%2Fstrong%3E%20About%20%241%20million%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EHope%20Ventures%2C%20Rasameel%20Investments%20and%20support%20from%20accelerator%20programmes%20%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%2012%3C%2Fp%3E%0A
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
More on animal trafficking
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
Going grey? A stylist's advice
If you’re going to go grey, a great style, well-cared for hair (in a sleek, classy style, like a bob), and a young spirit and attitude go a long way, says Maria Dowling, founder of the Maria Dowling Salon in Dubai.
It’s easier to go grey from a lighter colour, so you may want to do that first. And this is the time to try a shorter style, she advises. Then a stylist can introduce highlights, start lightening up the roots, and let it fade out. Once it’s entirely grey, a purple shampoo will prevent yellowing.
“Get professional help – there’s no other way to go around it,” she says. “And don’t just let it grow out because that looks really bad. Put effort into it: properly condition, straighten, get regular trims, make sure it’s glossy.”
Company%20profile
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20WallyGPT%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2014%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3ESaeid%20and%20Sami%20Hejazi%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%3Cbr%3E%3Cstrong%3EInvestment%20raised%3A%20%3C%2Fstrong%3E%247.1%20million%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%3C%2Fstrong%3E%2020%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3EPre-seed%20round%3C%2Fp%3E%0A
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AGL AWARDS
Golden Ball - best Emirati player: Khalfan Mubarak (Al Jazira)
Golden Ball - best foreign player: Igor Coronado (Sharjah)
Golden Glove - best goalkeeper: Adel Al Hosani (Sharjah)
Best Coach - the leader: Abdulaziz Al Anbari (Sharjah)
Fans' Player of the Year: Driss Fetouhi (Dibba)
Golden Boy - best young player: Ali Saleh (Al Wasl)
Best Fans of the Year: Sharjah
Goal of the Year: Michael Ortega (Baniyas)
Company profile
Company: Verity
Date started: May 2021
Founders: Kamal Al-Samarrai, Dina Shoman and Omar Al Sharif
Based: Dubai
Sector: FinTech
Size: four team members
Stage: Intially bootstrapped but recently closed its first pre-seed round of $800,000
Investors: Wamda, VentureSouq, Beyond Capital and regional angel investors
North Pole stats
Distance covered: 160km
Temperature: -40°C
Weight of equipment: 45kg
Altitude (metres above sea level): 0
Terrain: Ice rock
South Pole stats
Distance covered: 130km
Temperature: -50°C
Weight of equipment: 50kg
Altitude (metres above sea level): 3,300
Terrain: Flat ice
