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Global debt markets are in the throes of a historic selloff as longer-maturity bond yields push to multi-decade highs, reflecting deep investor angst over runaway government deficit spending and Big Tech’s massive capital expenditures for artificial intelligence. The yield on 30-year US Treasuries climbed to its highest level since 2007, while French borrowing costs hit 2008 highs ahead of a looming budget battle and Germany prepared to auction 30-year bonds at their highest yield since 2011. This global surge in capital costs has dented equity markets and posed an immediate threat to the technology-led stock rally, raising concerns about the broader economic expansion.

Markets & Economics

• [US Housing Construction and Pending Sales Plummet] (Bloomberg): US housing starts declined in July, with single-family construction sliding to its slowest pace since 2022. This residential retrenchment was further underscored as pending sales of previously owned homes dropped to their weakest level since the start of the year.
• [China’s Premier Li Qiang Demands Policy Support Amid July Slump] (Bloomberg): China’s economy exhibited across-the-board weakness in July, dragging growth further below the government’s annual target. This stagnation prompted Premier Li Qiang to issue a firm directive calling on officials to deploy more supportive economic measures.
• [RBI’s Sudden Forex Policy U-Turn Rattles Indian Markets] (Bloomberg): The Reserve Bank of India caught traders and bankers off guard by closing its special foreign-currency deposit window a month ahead of schedule, raising questions about its communication effectiveness. The sudden policy shift prompted traders to aggressively pare their bullish bets on the rupee and short-term bonds.
• [Colombia’s GDP Growth Surges, Boosting New Administration] (Bloomberg): Colombia’s gross domestic product expanded by 3.5% in the second quarter, handily beating analyst estimates and giving newly inaugurated President Abelardo de la Espriella a buoyant economic tailwind as he begins his four-year term.
• [M&G Bets on South Korean Bond Rally Against Rate-Hike Consensus] (Bloomberg): South Korean government bonds are poised for a rally as the country’s central bank will likely buck market consensus by slowing the pace of interest rate hikes as domestic inflation pressures continue to cool, according to M&G Investments.

Business & Industries

• [NSE of India Seeks Record-Breaking $55 Billion IPO Valuation] (Bloomberg): The National Stock Exchange of India Ltd., the world’s largest derivatives exchange by volume, is aiming for a valuation of up to 5.26 trillion rupees ($55 billion) in its planned IPO. This would place it among the world’s six most valuable exchange operators.
• [KKR Proposes $9 Billion Takeover of Utility Giant UGI Corp.] (Bloomberg): Private equity firm KKR & Co. has submitted a $9 billion takeover bid to acquire natural gas and electricity distributor UGI Corp. at $42.50 per share. The cash-and-debt offer represents a major consolidation move in the US utility space.
• [Klarna Shares Plunge on Lukewarm Guidance Despite Q2 Profit Beat] (Bloomberg): Klarna Group Plc reported its second consecutive quarterly profit beat as it diversifies into everyday financial services. However, its shares plunged in premarket trading after full-year revenue and gross merchandise value guidance missed expectations due to German volume weakness and forex headwinds.
• [Home Depot Defies Housing Slump With Q2 Revenue and Earnings Beat] (Bloomberg): Home Depot Inc. posted a 1.7% increase in comparable sales for the second quarter, beating Wall Street estimates. The results suggest that homeowner spending on improvement projects remains resilient despite high borrowing and housing costs.
• [Gates-Backed TerraPower Plans Dedicated Nuclear Project for Data Centers] (Bloomberg): TerraPower LLC, which is building the only utility-scale nuclear plant in the US, plans to announce its next project this year. This new facility will be specifically designed and dedicated to power an artificial intelligence data center.

Policy & World

• [US and Canada Race Against Midnight Deadline to Avert 50% Tariff] (Bloomberg): Canada is scrambling to secure an agreement with the Trump administration to avoid a devastating 50% tariff on billions of dollars of exports to the US. US officials have characterized negotiations ahead of the midnight deadline as a “coin flip”.
• [Trump Rejects Iran Truce as Ballistic Missiles Target UAE] (Bloomberg): President Donald Trump has officially rejected any extension of the expiring 60-day ceasefire with Iran, leaving Middle East peace hopes stuck in limbo. The decision came as Iran stepped up efforts to control the Strait of Hormuz and fired two ballistic missiles at the UAE in its first known attack on the Gulf nation since May.
• [Trump Administration Sanctions ICC and Vows to Dismantle Court] (Bloomberg): The US has imposed targeted financial sanctions against the president and senior trial lawyer of the International Criminal Court, dramatically escalating its campaign against the tribunal. The White House vowed to “dismantle” the court over what it described as unfair targeting of the US and Israel.
• [Mexico Prepares Chinese Import Crackdown as Trade Talks Grind On] (Bloomberg): Mexico is drafting plans to impose new trade restrictions and raise import duties on select products from China and other nations. The move is designed to strengthen its leverage while ongoing trade discussions with the United States continue.

Opinion & Analysis

• [Marc Champion: Why Iran’s Regime Needs the Middle East Conflict to Drag On] (Bloomberg): Bloomberg Opinion columnist Marc Champion argues that while President Trump promised to rescue ordinary Iranians, his military campaign has instead handed the hardline Tehran regime a massive political lifeline. Champion contends that the war has allowed leaders to crush domestic protests under the pretext of national security and consolidate their hold on power.
• [German Finance Ministry Seeks Graceful Exit From Commerzbank Battle] (Bloomberg): In the wake of UniCredit SpA’s effective victory in acquiring Commerzbank AG, Bloomberg Opinion analysis notes that the German government has finally accepted the inevitable. While the finance ministry is seeking a graceful exit for its remaining stake, the bitter public opposition from Berlin has stirred up persistent bad blood.
• [Daron Acemoglu: Restoring Liberal Democracy in an Age of Productivity] (Bloomberg): A review of Nobel laureate Daron Acemoglu’s new book, What Happened to Liberal Democracy?, highlights his sweeping historical and technical exploration of how to sustain liberty. He explores the deep challenges of a rising faction of overeducated, underpaid voters pushing politics toward populist extremes.

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