Markets
Macro
The U.S. doubled down on industrial policy with Trump approving Nippon Steel’s takeover of U.S. Steel, while retaining a government “golden share” and reinforcing 50% steel and aluminum tariffs, signaling a harder line on foreign investment and trade. Markets absorbed mixed signals from economic data: inflation remains sticky, but softening retail sales and industrial output raised fresh concerns about slowing growth heading into Q3.
Market Intel
The Fed Holds Interest Rates
Despite signs of easing inflation, the Federal Reserve is once again opting for patience. At its June meeting, policymakers voted to keep interest rates steady, resisting growing market pressure for cuts.
Movement away from U.S Markets
Institutional investors are shifting away from U.S markets as trade wars and escalating debt fuel fear about the strength of American assets in portfolios. Erratic trade policy has shaken up global markets in the past quarter, sparking a sell-off of the U.S dollar. Uncertainty of when and by how much tariffs are going to hit has also fueled these concer…
Stablecoin Introduction
Stablecoins can destabilize as banks might see deposits decrease and become less reliable. While they wouldn’t take all deposits, some of the better ones might vanish. Some of the biggest merchants, such as Walmart and Amazon, are exploring whether to issue their coins in the U.S. Expedia Group and large airlines have also discussed issuing their coins.…
Microsoft and OpenAI Clash
Microsoft is considering dropping negotiations with OpenAI after disagreements over OpenAI’s aim for profit. The $300 billion AI start-up can’t agree with the software giant over future stake and its plans. Under current agreements, Microsoft would retain access to OpenAI’s technology through an existing contract until 2030, unless a better offer comes …
Current Affairs
Israel vs. Iran
Israel and Iran are in the midst of a fierce military conflict that began roughly a week ago. The clash between the two countries has rapidly escalated as both nations have sent barrages of missiles and drones towards their adversary. Iran has reported over 224 people have died thus far, with most being civilians, and Israel has reported all civilian ca…
L.A. Lakers Deal
The Buss family has agreed to sell its controlling stake in the Los Angeles Lakers to billionaire investor Mark Walter. The deal is said to amount to approximately $10 billion according to ESPN, and would become the highest valuation ever for a U.S. professional sports franchise if the league approves.
News
More From the Week
Trump says he will decide whether or not he will attack Iran within 2 weeks.
ICE continues to crack down on illegal immigration, and L.A protests ensue.
Indiana Pacers win Game 6 of the NBA Finals, leading to a tied series, 3-3.
Read the full stories and more at theweeklyyield.com.