Bloomberg

Lead Story

US Treasury Secretary Scott Bessent unexpectedly announced that the Treasury will at least double the maximum size of its liquidity support buyback operations for longer-dated nominal coupon securities to at least $4 billion per operation. Effective September 9, 2026, this high-stakes intervention is designed to rein in soaring long-term borrowing costs that recently hit multi-decade highs, drawing direct comparisons to the Federal Reserve’s crisis-era “Operation Twist”. The surprise announcement sparked an immediate, massive rally in long-dated US government bonds, sent the US dollar tumbling by the most in three weeks, and fueled a broad Wall Street stock rebound.

Markets & Economics

• Federal Reserve Minutes Reveal Internal Debate on Rate Hikes · Bloomberg: Minutes from the July FOMC meeting showed several officials favored an interest-rate hike last month and many indicated that policy tightening would be necessary if inflation didn’t decline, describing the debate as a highly contentious dispute over inflation and rate paths.
• US National Debt Tops $40 Trillion Amid Fiscal Concerns · Bloomberg: Total US public debt has surpassed $40 trillion for the first time, representing a massive one-third surge in less than five years as lawmakers ignore wide fiscal deficits and raise risks of a market “doom loop”.
• UK Inflation Hits Four-Month High as Energy Costs Surge · Bloomberg: UK consumer prices climbed to a four-month high in July as household energy bills surged, ending a brief period of respite for consumers and adding pressure on the Bank of England.
• Carry Traders Shift to Swiss Franc Amid Yen Volatility · Bloomberg: Global investors are increasingly turning to the Swiss franc as their primary funding currency, abandoning the Japanese yen as intervention threats and rising interest rates increase yen volatility.
• Iceland Hikes Benchmark Rate to 8% to Fight Wage-Price Spiral · Bloomberg: Iceland’s central bank raised borrowing costs for the third time this year to 8% to prevent a wage-price spiral as rising fuel costs fueled by the Middle East conflict feed into broader inflation.

Business & Industries

• Moderna and Merck Cancer Vaccine Triumphs in Trial · Bloomberg: A personalized mRNA vaccine developed by Moderna and Merck & Co. successfully reduced the recurrence of melanoma in a large, late-stage study, sparking a historic 101% intraday surge in Moderna shares and inflicting a $5 billion blow on short sellers.
• Target Raises Outlook as Turnaround Rebounds · Bloomberg: Target Corp. raised its full-year sales and profit guidance after reporting second-quarter results that outpaced estimates, demonstrating that its focus on traffic, merchandising, and food options is bringing consumers back.
• SK Hynix Unveils $29 Billion Buyback to Reassure AI Investors · Bloomberg: South Korea’s SK Hynix Inc. announced a massive buyback and cancellation of up to 24 million shares, valued at $29 billion, as it seeks to reassure shareholders amid worries over the longevity of global AI hardware spending.
• Anthropic’s Revenue Hits $65 Billion Rate Ahead of IPO · Bloomberg: Artificial intelligence leader Anthropic is on track to generate more than $65 billion in annualized revenue based on current performance—a sevenfold increase from last year’s pace—as it moves closer to a public debut.
• YouTube Offers Millions to Block Content from Netflix · Bloomberg: YouTube is offering high-profile creators millions of dollars in incentives to release their videos on its platform before any other service, imposing penalties on concurrent releases with Netflix in a bid for online video dominance.

Policy & World

• US and Canada Agree to Three-Day Tariff Delay Amid Active Trade Talks · Bloomberg: The Trump administration postponed 50% tariffs on Canadian goods for three days after high-stakes talks, as negotiators close in on a deal that would lower steel and aluminum tariffs to 25% and auto tariffs to 15%.
• UAE Severs All Economic Ties with Iran Following Missile Attacks · Bloomberg: The United Arab Emirates cut all trade and financial ties with Tehran after accusing Iran of launching ballistic missiles at its territory, threatening to cut a crucial economic pipeline for the Islamic Republic.
• Trump Allies Cruise in US Primaries as Progressive Pulls Off Florida Upset · Bloomberg: Trump-endorsed Representative Byron Donalds easily won Florida’s Republican gubernatorial primary. In the Democratic primary, Democratic Socialist state lawmaker Angie Nixon pulled off an upset over moderate former White House aide Alex Vindman.
• Trump Names White House Aide Heidi Overton to Lead FDA · Bloomberg: President Trump appointed White House policy adviser Heidi Overton to head the Food and Drug Administration, moving to stabilize the regulator after a year of staff attrition and complaints from major industries.

Opinion & Analysis

• Erebor Bank is Courting Silicon Valley Bank’s Dangerous Concentration Risks · Bloomberg Opinion: Columnist argues that Palmer Luckey’s and Peter Thiel’s startup lender, Erebor Bank, faces significant hazards by attempting to replicate the highly concentrated tech-depositor model that sank SVB in 2023.
• Grade Capping is Essential to Protect Academic Integrity · Bloomberg Opinion: Harvard Law professor Noah Feldman defends Harvard’s new policy capping undergraduate A’s to combat grade inflation, contrasting it with the University of Michigan’s counterproductive move to ban first-semester grades entirely.
• The Mecca Pact represents a Critical Regional Defense Shift · Bloomberg Opinion: Highlighting the mutual defense treaty signed by Saudi Arabia, Turkey, and Pakistan, the columnist argues that while it is not a “Sunni NATO,” it signals that Middle Eastern powers are looking past Washington to secure their own stability.

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