Bloomberg

Lead Story

Geopolitical shockwaves are hitting global markets after Iran fired a volley of missiles at Israel, jeopardizing a fragile 100-day ceasefire and sending crude oil prices surging. The escalating Middle East conflict coincides with a tech-led equities selloff on Wall Street, as a blowout US jobs report effectively killed traders’ hopes for a Federal Reserve rate cut this year and reinforced expectations of a “higher for longer” monetary policy environment.

Markets & Economics

• Goldman Sachs No Longer Expects Fed Interest-Rate Cut This Year: Following a surprisingly robust US labor report, Goldman Sachs economists have scrapped their predictions for a Federal Reserve rate cut in 2026. The data fueled a broad tech selloff and prompted bond traders to price in persistently sticky inflation.
• South Korea Unveils Measures to Stem Won Slide, Curb Speculation: South Korean authorities pledged firm action against speculative trading after the won plummeted to its weakest level since 2009, rolling out targeted interventions to stabilize the currency amid amplified market swings.
• JPMorgan AM, Pictet Break From Pack With ‘One and Done’ for ECB: Big-name asset managers are staking out a contrarian position ahead of Thursday’s European Central Bank meeting, betting that the ECB’s rate-hiking cycle will be much shallower than the broader market anticipates.
• Corporate Japan Borrows More as Deals, Outflows Pressure Ratings: Japanese businesses are aggressively ramping up their borrowing to cover cash shortfalls driven by record merger activity, booming capital investments, and pressure to boost shareholder returns, a trend that threatens to strain their credit ratings.

Business & Industries

• United Air CEO Tears Into Rolls-Royce for Lack of Support: At the IATA summit in Rio de Janeiro, United Airlines CEO Scott Kirby publicly blasted engine supplier Rolls-Royce over poor support as the two clash over a major aircraft order. The dispute highlights broader industry tensions, with the aviation lobby accusing engine makers of price gouging.
• Ingredion Is in Advanced Talks to Acquire Tate & Lyle for £2.7 billion: Ingredion is reportedly nearing a $3.6 billion deal to buy the British ingredients maker, setting the stage for yet another prominent brand to exit the London stock market.
• OpenAI Readies ‘Superapp’ Pivot Ahead of Planned IPO, FT Reports: Seeking to outmaneuver rivals like Anthropic, OpenAI is orchestrating a major platform overhaul to reposition itself as a “superapp” ahead of its highly anticipated public offering later this year.
• Italy’s Banco BPM Proposes Monte Paschi Merger ‘Of Equals’: European bank consolidation is accelerating as Banco BPM officially proposed a merger to Banca Monte dei Paschi di Siena, aiming to create a new Italian financial heavyweight.

Policy & World

• Xi Visits North Korea to Reassert Influence Over Emboldened Kim: Chinese President Xi Jinping is traveling to Pyongyang in a strategic bid to rein in Kim Jong Un, whose rapidly expanding nuclear arsenal and deepening military alliance with Russia have unsettled Beijing.
• US-China Rivalry Is Laid Bare by a Contract to Deepen an Argentine River: President Javier Milei’s administration awarded a 25-year contract to upgrade a vital trade artery to a venture with Chinese ties, highlighting the ongoing geopolitical tug-of-war for infrastructure influence in Latin America.
• Peru on Edge as Exit Polls Show No Clear Presidential Winner: Peru’s bitterly contested presidential runoff remains too close to call, leaving the future of one of Latin America’s most stable macroeconomic models hanging in the balance.
• South Africa to Crack Down on Illegal Migrants as Protest Surge: President Cyril Ramaphosa announced a severe crackdown on undocumented migrants following a wave of violent xenophobic protests, while warning citizens against vigilantism.

Opinion & Analysis

• The Top 1% Reap Most From Tax Loophole Costing $48 Billion: Bloomberg analysis reveals how the ETF industry is exploiting a “heartbeat” tax break at an unprecedented scale, effectively shielding massive gains and overwhelmingly benefiting the wealthiest investors.
• Japan Is Becoming the Superpower of the Middle Powers: While some traditional US allies distance themselves from Washington, Japan is successfully threading the needle—maintaining a strong relationship with the US while orchestrating a historic military buildup to counter China on its own terms.