• Velo3D rings Nasdaq bell: The metal additive manufacturing company Velo3D rang the Nasdaq Opening Bell this morning to celebrate recent growth and funding. 

Corporate earnings

• Prudential PLC: The insurance and investment firm beat consensus estimates with a strong first half of the year.
• Rio Tinto: The global mining company announced a new CEO and a simplified company structure.
• BJ’s Wholesale Club: The company’s stock fell after its second-quarter report showed that higher fuel prices weighed on overall sales. 

International markets

• European stocks rebound: European shares edged higher after a recent selloff, with investors balancing French political risks against renewed hopes for strong tech earnings from Nvidia.
• German consumer confidence slumps: German consumer sentiment continues to weaken amid a sluggish economy and rising concerns over unemployment.
• Australian inflation jumps: Australia’s monthly inflation indicator for July rose to its highest level in a year, affirming the Reserve Bank of Australia’s cautious approach to future interest rate cuts.
• Brazil’s inflation and rates: Brazil saw a temporary deflation in its August IPCA-15 index, but persistent service-sector inflation is keeping core prices high. The central bank’s high interest rates are also affecting sectors like construction.
• China stocks mixed: China and Hong Kong stocks traded mixed as investors assessed industrial profits data showing a recovery but also considered warnings of “irrational exuberance”.
• Trump adds India tariffs: President Trump’s doubling of tariffs on Indian imports has taken effect. 

Key finance, tax, and accounting news in August 2025 includes the implementation of the “One Big Beautiful Bill Act” (OBBBA), new FASB accounting standards, shifts in SEC priorities under a new administration, and additional US tariffs. Financial markets have been resilient despite mixed economic data, and AI’s impact on the accounting industry continues to grow. 

Tax news

The primary tax news in 2025 surrounds the passage of the “One Big Beautiful Bill Act” (OBBBA), which makes significant changes to the tax code. 

• Tax Cuts and Jobs Act (TCJA) extension: The OBBBA permanently extends many provisions of the 2017 TCJA that were set to expire, including the lower individual tax brackets and a higher standard deduction.
• New temporary deductions: For tax years 2025 through 2028, the act introduces new deductions for certain workers:
  • Tip income: Up to $25,000 in qualified tips can be deducted, with a phaseout for high-income earners.
  • Overtime pay: Up to $12,500 in qualified overtime compensation can be deducted, also with a phaseout for high-income earners.
• Energy credit changes: Effective September 30, 2025, several energy-efficient tax credits are being phased out, including those for electric vehicles, hybrids, charging stations, and home improvements.
• Other key updates for 2025:
  • No new forms this year: The IRS has announced that implementation of some OBBBA provisions will be delayed until 2026 to avoid disruptions to withholding tables and information returns like Form W-2.
  • Gift and estate tax: The annual gift tax exclusion has increased to $19,000, and the estate tax exclusion is now $13.99 million.
  • Paperless payments: The US Treasury’s mandate to eliminate paper refund checks for tax preparers and their clients will take effect on September 30, 2025.
• IRS staffing issues: The IRS is seeking to fill “critical vacancies” as its workforce has declined significantly in 2025. Former officials have raised concerns about the agency’s ability to modernize and implement new tax legislation. 

Accounting news

The Financial Accounting Standards Board (FASB) has issued several important updates in 2025. 

• Environmental credits: The FASB set new requirements on how companies record environmental credits, though it rolled back some disclosure requirements from previous proposals.
• Business combinations: ASU 2025-03 provides new guidance for determining the accounting acquirer in business combinations involving a variable interest entity (VIE).
• Share-based compensation: ASU 2025-04 clarifies accounting for share-based consideration provided to customers.
• International standards: International Financial Reporting Standards (IFRS) amendments effective January 1, 2025, provide guidance on determining exchange rates for currencies that lack exchangeability.
• Focus on AI: A new study quantified the time savings for CPAs using AI, and accounting professionals are increasingly looking to adopt automation for higher-value advisory services. 

Financial news

Financial markets in August 2025 are navigating complex signals, including mixed economic data and potential changes in Federal Reserve policy. 

• Economic indicators: Stock markets have remained resilient this year despite signs of a softening labor market and persistent inflation.
• Federal Reserve outlook: Market sentiment points toward a potential interest rate cut by the Federal Reserve, though the timing remains uncertain.
• Trade and tariffs: New US tariffs on European Union and other imports took effect on August 7, 2025, creating volatility and impacting company supply chains.
• Investment trends: Growth stocks, particularly those related to AI, continue to perform well, though large-cap stocks have been ahead of small caps for most of the year.
• SEC regulatory shifts: The SEC is expected to alter its regulatory priorities, and has already withdrawn several proposed rules under the new administration. The market is watching for potential rule changes related to crypto assets and private funds.