Bloomberg

Lead Story

US President Donald Trump abruptly called off planned military strikes against Iran, pivoting instead to fresh negotiations slated to begin Monday. The sudden de-escalation followed pleas from Saudi Arabia and other Middle Eastern allies, who indicated a rapid diplomatic agreement to reopen the Strait of Hormuz could be within reach. The easing of geopolitical risk premiums sent oil prices tumbling, while simultaneously boosting US equity futures and weighing on the dollar.

Markets & Economics

• Yen Traders Brace for More Intervention With US at Japan’s Side: Currency markets are on high alert following joint currency-market intervention by the US and Japan that triggered a dramatic rebound in the yen. President Trump framed the rare US coordination as a “signal of friendship,” and strategists warn the move significantly raises the stakes for investors betting against the Japanese currency.
• Wall Street’s Favorite Bet Comes Undone as Chips Whipsaw Market: The seemingly unstoppable rally in semiconductor stocks is fracturing, injecting heavy volatility into equities. Investors are growing increasingly concerned that the fire-hose of capital expenditures driving the artificial intelligence boom may not be sustainable.
• Bond Traders Flying Blind on Fed See Risk Yields Spiral Higher: Treasury investors are growing anxious over a potential deeper market rout as Federal Reserve Chairman Kevin Warsh reportedly weighs altering the frequency of policy meetings. The lack of clarity has left bond traders in the dark regarding how the central bank will respond to evolving economic data.
• OPEC+ Makes Small Quota Hike to Finish Unwinding 2023 Cuts: Major OPEC+ nations approved a token production increase for September, a move that completes the theoretical revival of supplies that were halted in 2023.

Business & Industries

• AstraZeneca Said to Have Explored Bristol Myers Merger: AstraZeneca Plc engaged in discussions regarding a potential megadeal to acquire Bristol Myers Squibb Co.. Such a transaction would forge one of the world’s largest pharmaceutical conglomerates.
• Prysmian Is Said Near Takeover of US Electrical Maker Atkore: Italian cable and energy transition giant Prysmian is currently in advanced talks to purchase US electrical manufacturing firm Atkore Inc..
• ANZ, NAB Among Banks Funding Blackstone HSBC Book Buy, AFR Says: ANZ Group Holdings and National Australia Bank are among the lenders bankrolling Blackstone Inc.’s $25.3 billion acquisition of HSBC Holdings Plc’s Australian retail loan portfolio.
• ‘Spider-Man’ Notches Hollywood’s Second-Biggest Debut Ever: Spider-Man: Brand New Day scored the second-highest opening weekend ticket sales in Hollywood history. The blockbuster also delivered a massive debut in China, injecting vital momentum into the world’s second-largest film market.

Policy & World

• France Tightens Foreign Investment Rules for Critical Industries: Citing national security risks amid rising geopolitical tensions, the French government enacted stricter regulations on foreign investment in key domestic companies, including those listed overseas.
• Ukraine Says It Attacked Rosneft’s Refinery in Russia’s Saratov: Ukrainian forces launched an overnight strike against a Rosneft PJSC refinery in Saratov, continuing Kyiv’s sustained campaign to degrade Russia’s domestic fuel-producing infrastructure.
• Malaysia Mulls Easing Rare-Earth Export Curbs to Meet Demand: Malaysia is considering a relaxation of its export restrictions on unprocessed rare earths to capitalize on global demand and strengthen its position in strategic supply chains.

Opinion & Analysis

• AI Is Power and America’s Lead Over China Is Shrinking: Bloomberg Opinion explores how the stakes for artificial intelligence in warfare, politics, and statecraft have never been higher, warning that the US technological edge over Beijing is steadily eroding.
• China’s Trade Defiance Will Come at a Cost: A recent policy document from Beijing signals little room for compromise on its widening trade imbalance with the European Union, a stance that leaves Brussels with few practical options beyond escalating protectionist measures.