Bloomberg

Lead Story

The US labor market flashed a surprise warning sign as employers unexpectedly shed 23,000 jobs in July, defying expectations of an 80,000-job gain and triggering downward revisions to hiring data from previous months. This downbeat payroll print sparked a major rally in US Treasuries, sending the two-year yield tumbling as much as nine basis points to 4.15% as traders aggressively dialed back expectations for future Federal Reserve rate hikes. While the headline unemployment rate fell slightly to 4.1%, the cooling labor demand has led major market participants to declare that near-term central bank rate hikes are now off the table.

Markets & Economics

• Philippine GDP Growth Plummets to 2.3% on Energy Cost Shocks · Bloomberg Economics: Economic growth in the Philippines unexpectedly decelerated in the second quarter to its slowest non-Covid pace since 2009. Spiking fuel import costs have stoked domestic inflation and hammered consumer spending and investments, leaving the central bank with little room for further rate hikes.
• Copper Prices Surge Toward Record Highs on Dual-Market Demand Squeeze · Bloomberg Markets: London copper is trading near an all-time high as LME inventories are rapidly depleted by a simultaneous demand surge in both the US and China. Increasing physical deliveries to the US and climbing manufacturing orders in China have significantly tightened global supply.
• China’s Steel Price Plunges to Near-Decade Low Amid Property Crisis · Bloomberg Industries: A key Chinese steel product price dropped to its lowest level in nearly ten years as the country’s prolonged real estate downturn continues to sap construction demand. The resulting inventory buildup has prompted several Chinese steel mills and traders to halt transactions with prominent iron ore suppliers.
• Global Food Prices Climb to Three-Year High as Supply Threats Compound · Bloomberg Economics: World food prices rose in July to their highest level in over three years, driven by escalating supply risks in grain corridors and severe weather across major growing regions. Drought has severely impacted European agricultural heartlands like Hungary, while Russian strikes on Odesa threaten to slash Ukraine’s grain exports by over half.

Business & Industries

• FAA Orders Crack Inspections for Over 470 Boeing 737 Max Jets · Bloomberg Industries: The Federal Aviation Administration has directed airlines to inspect 471 Boeing 737 Max aircraft for component cracks that could compromise structural integrity. The order injects fresh regulatory and operational uncertainty into Boeing amid heightened scrutiny of its commercial manufacturing quality.
• Under Armour and Wendy’s Slash Outlooks as Global Demand Cools · Bloomberg Retail: Under Armour cut its full-year sales guidance, forecasting mid-single digit revenue declines across North America, Europe, and Asia-Pacific due to a softening global consumer environment. Meanwhile, Wendy’s withdrew its 2026 outlook and cut its dividend under its new CEO, amid industry-wide headwinds from a massive US cyclospora food safety outbreak.
• Dream Finders Homes Agrees to Acquire Beazer Homes in $916 Million Consolidation · Bloomberg Deals: Dream Finders Homes agreed to purchase rival Beazer Homes USA for approximately $916 million. The transaction represents significant consolidation in the US housing sector as builders scale up to capture market share despite broader economic uncertainty.
• SpaceX Mounts Recovery Toward $135 IPO Price Benchmarks · Bloomberg Markets: SpaceX shares jumped for a second consecutive session, putting the company on the cusp of breaking back above its $135 initial public offering benchmark. The rally marks a solid turnaround after shares temporarily fell below that key level last month.

Policy & World

• Senator Bill Cassidy Endorsement Clears Todd Blanche’s Path to Attorney General · Bloomberg Politics: Republican Senator Bill Cassidy announced his support for Todd Blanche to serve as the next US Attorney General, likely securing the necessary votes for confirmation. The endorsement provides a critical breakthrough for the administration, after a series of Republican defections threatened to delay the confirmation process.
• US Senate Passes Bipartisan Russia Sanctions and Tariff Bill · Bloomberg Government: In an 86-11 bipartisan vote, the Senate approved a comprehensive sanctions bill championed by Senator Lindsey Graham. The legislation grants the president authority to impose punishing tariffs on major buyers of Russian oil, including China and India, while extending sanctions on Iran.
• Canada Scrambles for Trade Accord to Avert Looming 50% US Tariffs · Bloomberg Trade: Canadian negotiators are working urgently to secure a trade deal before President Donald Trump’s threatened 50% tariffs on a wide range of goods take effect on August 19. Ottawa has warned that failure to reach an agreement will trigger an escalatory and highly destructive new phase of the bilateral trade dispute.
• Turkey, Saudi Arabia, and Pakistan Sign Mecca Defense Agreement · Bloomberg Policy: Turkey, Saudi Arabia, and Pakistan signed a trilateral security pact in Mecca to coordinate defense postures against the backdrop of the ongoing Iran war. The alignment comes as Iran proposes a deal with Oman to bar US and Israeli ships from transiting the Strait of Hormuz, where Abu Dhabi National Oil Co. recently reported three of its vessels were attacked by missiles and drones.

Opinion & Analysis

• Treasury Secretary Scott Bessent’s Yen Defense is a Risky FX Innovation · Bloomberg Opinion: The editorial board argues that the first joint US-Japan currency intervention in decades is a risky, short-term measure that fails to address the structural macroeconomic imbalances of a weak yen. It warns that coordinating such currency defenses could ultimately backfire by dragging the Federal Reserve into exchange-rate policy at an awkward moment for central bank independence.
• How Immigration Raids Are Backfiring on South Texas Builders · Bloomberg Opinion: The columnist highlights how President Trump’s aggressive immigration raids are severely disrupting South Texas construction projects by decimating the local labor force. Crucially, the resulting economic pain is causing historically conservative construction industry leaders to defect from the Republican Party.
• The Looming Backlash From the New Age of AI Luddites · Bloomberg Opinion: The piece warns that the rapid artificial intelligence transformation is poised to become the most potent “grievance-producing machine” in modern history. Unless policymakers actively manage worker displacement, the transition will trigger labor rebellions and social unrest on a scale that dwarfs historical backlash.

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