The US wants to improve location-tracking capabilities in AI chips. Wall Street banks are cautioning a pullback in US stocks. And Hong Kong issues a record number of black rain warnings. Listen to the day’s top stories.

The US is looking at ways to equip semiconductors with better location-tracking capabilities, said Michael Kratsios, one of the architects of a US AI action plan unveiled by Trump last month. That underscores Washington’s effort to curtail the flow of chips made by the likes of Nvidia to China. Meanwhile, Palantir Technologies reported a 48% increase in quarterly sales to more than $1 billion, citing the “astonishing impact” of AI technology on its business.

President Donald Trump said he would be “substantially raising” the tariff on Indian goods over the Asian nation’s purchase of Russian oil. New Delhi slammed the move as unjustified. In other trade news, Japan’s top negotiator is set to leave for the US to urge Washington to proceed with a promised cut to car tariffs. US Customs said tariffs won’t apply to any products loaded on to a vessel for transport into the US before 12:01 a.m. New York time on Thursday.

Balance of Power

On the early edition of Balance of Power, Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz discuss President Trump threatening India tariff hike over Russia, as Netherlands begins supplying weapons to Ukraine. Listen to the Podcast

Germany received the go-ahead from the EU for more than half of its planned gas-plant expansion, and remains in talks regarding the rest, economy minister Katherina Reiche said. Berlin was able to negotiate state aid approval for “significantly more” than half of the 20 gigawatts of planned capacity, she said, adding that the first tender is due around the end of this year.