Highlights for the morning: OpenAI and Luxshare vs. Apple, China kept betting, Tylenol dispute

In the US, Donald Trump's administration is preparing a high-profile announcement about a possible link between Tylenol and autism risk in children, which has hit shares of the Kenvue manufacturer. In parallel, the White House is pushing a restructuring deal for TikTok involving Oracle, Fox Corp., Silver Lake and Andreessen Horowitz, where U.S. investors would gain control and key powers. China has kept rates on hold amid signs of a slowing economy despite the Fed's recent rate cut. On these and other topics, our roundup of key developments for the morning of Sept. 22.

President Donald Trump told Fox News that Rupert and Lachlan Murdoch, as well as Larry Ellison (Oracle) and Michael Dell (Dell) could be involved in a deal for TikTok's U.S. division. According to Deadline, Fox Corp. is in talks to join an investor group that would back the spin-off of TikTok from ByteDance.

According to White House spokeswoman Carolyn Levitt, the agreement has already been negotiated and stipulates that six of the seven seats on the board of directors will be held by Americans and the app's algorithm will be controlled in the US. ByteDance will get less than 20% in the new company and Oracle will be responsible for TikTok's security. Andreessen Horowitz and Silver Lake are also named among the investors.

Federal law threatened to block TikTok in the U.S. earlier this year, but Trump has repeatedly extended the deadline for the deal. He noted that Chinese President Xi Jinping has endorsed the agreements. TikTok thanked the US and Chinese leaders "for preserving the app for US users".

The People's Bank of China on Monday left prime rates unchanged for the fourth time in a row: one-year rate at 3% and five-year rate at 3.5%, CNBC reports. The decision coincided with analysts' expectations, given the growth of the stock market and the authorities' caution in launching new stimulus. At the same time, the economy showed weakness in August: retail sales slowed to 3.4%, industrial production - to 5.2%, and exports showed the lowest growth since February.

Inflation also points to weak demand: consumer prices have fallen more than forecast and producer deflation has lasted almost three years. The real estate market continues to be in crisis, and support measures from the budget have weakened. Barclays notes that "almost all housing indicators deteriorated" in August, and growth in the third quarter weakened markedly.

Economists predict that at the end of the year the authorities may go for a moderate easing of policy: a 10 bps cut in repo and lending rates, as well as a reduction in the reserve requirement for banks, the channel points out. Barclays expects China's GDP growth to be only 4.5% in 2025, despite possible steps to stimulate the economy.

Chinese electronics maker Luxshare, a supplier to Apple, jumped 10% in value following reports that the company has signed a deal with OpenAI to release a consumer AI device, CNBC writes. According to The Information, a ChatGPT-based prototype is already being developed and a launch could come in late 2026 or early 2027. The stock's rise has brought its year-to-date gain to 50%.

The deal strengthens OpenAI's position in the hardware business. The partnership with Luxshare could be a key step in bringing the AI company into direct competition with Apple and other smart device makers.

OpenAI is already actively poaching specialists from Apple: it hired ex-design director Tan Tan and acquired the startup of former Apple chief designer Jony Ive for $6.4 billion. Another Chinese partner of Apple, Goertek, which produces components for AirPods and HomePods, may also participate in the project.

U.S. authorities on Monday will announce a possible link between taking paracetamol (Tylenol) in early pregnancy and the risk of autism in children, The Washington Post reports. Women will be advised to use the drug only if they have a high fever. At the same time, the US Department of Health plans to present folate leucovorin as a potential means of therapy for autism.

The news caused the shares of Kenvue, the maker of Tylenol, to fall. The company said decades of research do not support a link between acetaminophen and autism, and called the authorities' stance dangerous for expectant mothers. Tylenol's website also published a rebuttal to the "unfounded rumors."

The FDA and leading medical organizations continue to consider paracetamol safe in pregnancy as long as dosages are maintained, but recommend consulting a physician before taking any over-the-counter medication. Health Secretary Robert F. Kennedy Jr. has made autism a key focus of his policy, although he has previously expressed unconfirmed theories about its causes.

- Japan's broad Topix index was up 0.8%. The benchmark Nikkei 225 was growing by 1.4%.

- In South Korea, the Kospi index added 0.5%, while the Kosdaq small-company index added 1.1%.

- Australia's S&P/ASX 200 was up 0.5 percent.

- Futures on the S&P 500 and Nasdaq 100 were little changed, while the Dow Jones Industrial Average was down 0.1 percent.

This article was AI-translated and verified by a human editor