CNBC Daily Open: Is China a no-go for U.S. investment?

CNBC Daily Open: Is China off-limits to US investment?

This news comes from today's CNBC Daily Open, our new international markets newsletter. CNBC Daily Open brings investors up-to-date information on everything they need to know, no matter where they are. Do you like what you see? You can sign up here.The U.S. consumer price index rose 3.2% in July from a year earlier, slightly less than expected — a sign that inflation has lost at least some of its grip on the U.S. economy. Almost all of the monthly increase in inflation came from housing costs, which rose 0.4% and were 7.7% higher than a year ago. Prices rose a seasonally adjusted 0.2% for the month, in line with the Dow Jones estimate, the Bureau of Labor Statistics said Thursday. Here's a breakdown of inflation for July in one chart. Markets reacted favorably, expecting the July inflation data to mean no further rate hikes by the Federal Reserve. This report is from today's CNBC Daily Open, our new international markets newsletter. CNBC Daily Open brings investors up-to-date information on everything they need to know, no matter where they are. Do you like what you see? You can sign up here.

The U.S. consumer price index rose 3.2% in July from a year earlier, slightly less than expected — a sign that inflation has lost at least some of its grip on the U.S. economy. Almost all of the monthly increase in inflation came from housing costs, which rose 0.4% and were 7.7% higher than a year ago. Prices rose a seasonally adjusted 0.2% for the month, in line with the Dow Jones estimate, the Bureau of Labor Statistics said Thursday. Here's a breakdown of inflation for July in one chart. Markets reacted favorably, expecting the July inflation data to mean no further rate hikes by the Federal Reserve. This report is from today's CNBC Daily Open, our new international markets newsletter. CNBC Daily Open brings investors up-to-date information on everything they need to know, no matter where they are. Do you like what you see? You can sign up here.

The U.S. consumer price index rose 3.2% in July from a year earlier, slightly less than expected — a sign that inflation has lost at least some of its grip on the U.S. economy. Almost all of the monthly increase in inflation came from housing costs, which rose 0.4% and were 7.7% higher than a year ago. Prices rose a seasonally adjusted 0.2% for the month, in line with the Dow Jones estimate, the Bureau of Labor Statistics said Thursday. Here's a breakdown of inflation for July in one chart. Markets reacted favorably, expecting the July inflation data to mean no further rate hikes by the Federal Reserve. This report is from today's CNBC Daily Open, our new international markets newsletter. CNBC Daily Open brings investors up-to-date information on everything they need to know, no matter where they are. Do you like what you see? You can sign up here.

The U.S. consumer price index rose 3.2% in July from a year earlier, slightly less than expected — a sign that inflation has lost at least some of its grip on the U.S. economy. Almost all of the monthly increase in inflation came from housing costs, which rose 0.4% and were 7.7% higher than a year ago. Prices rose a seasonally adjusted 0.2% for the month, in line with the Dow Jones estimate, the Bureau of Labor Statistics said Thursday. Here's a breakdown of inflation for July in one chart. Markets reacted favorably, expecting the July inflation data to mean no further rate hikes by the Federal Reserve. This report is from today's CNBC Daily Open, our new international markets newsletter. CNBC Daily Open brings investors up-to-date information on everything they need to know, no matter where they are. Do you like what you see? You can sign up here.

The U.S. consumer price index rose 3.2% in July from a year earlier, slightly less than expected — a sign that inflation has lost at least some of its grip on the U.S. economy. Almost all of the monthly increase in inflation came from housing costs, which rose 0.4% and were 7.7% higher than a year ago. Prices rose a seasonally adjusted 0.2% for the month, in line with the Dow Jones estimate, the Bureau of Labor Statistics said Thursday. Here's a breakdown of inflation for July in one chart. Markets reacted favorably, expecting the July inflation data to mean no further rate hikes by the Federal Reserve.

Asian shares are poised to end the week on a weak note, with all major benchmarks trading lower on the day - extending overnight weakness in US markets. Japanese markets were closed on Friday for the Mountain Day national holiday. Hong Kong's Hang Seng index fell 0.6% as a sell-off deepened in Chinese property developers. On Thursday, the blue chip Dow Jones Industrial Average, S&P 500 and Nasdaq Composite closed higher, but mostly out of session.

What does Biden's order mean for US investors in China?

US President Joe Biden signed an executive order on Wednesday to curb US investment in Chinese semiconductor, quantum computer and artificial intelligence companies over national security concerns. While the Biden administration has set some limits on its intended goals, its 45-day public comment period gives U.S. investors considerable potential to influence any final regulation. Here's what to expect next.

Fires and hurricanes

Hawaii is on fire. Biden declared a major disaster in Hawaii on Thursday and promised immediate help to Maui residents who lost loved ones and their homes in the devastating fires. At least 53 people have died so far. The fires are the worst natural disaster to hit Hawaii in recent memory, but they likely won't be the last for the US this year. National Oceanic and Atmospheric Administration scientists on Thursday raised the chance that this year will be an above-normal Atlantic hurricane season to 60% due to record-warming ocean temperatures.Some Wall Street analysts say investors may want to consider taking advantage of chipmaker Nvidia's recent weakness to snap up shares of the artificial intelligence darling

A new reality beckons for American private equity and venture capital investors.

President Joe Biden on Wednesday finally dropped his long-awaited executive order limiting new U.S. technology investment in China — the first time the U.S. government has imposed restrictions on how U.S. capital flows out of the country, said Elena McGovern, co-director of the National Security internship at private investment consulting firm Capstone.

 And given the priority of national interest and security, more could be prepared.

Biden's order specifically targets new U.S. investment and the transfer of expertise in semiconductors and microelectronics, quantum computing and certain artificial intelligence capabilities to China, Hong Kong and Macau.

The U.S. Treasury Department is still in the process of fine-tuning specific details before the measure can be fully implemented, possibly sometime next year.But it is a clear signal that the world's second largest economy is no longer a clear choice for American capital.

As it is, US firms have generally refrained from investing in China over the past few years due to the weakening growth environment and the prevailing geopolitical environment.That's bad news for Beijing, which needs foreign capital and technology transfers to shore up sagging growth momentum and move its economy up the value chain.There are other ways to do this, but Biden's executive order has only made things more difficult for some. There is more ingenuity in store.