Bloomberg — 2026-06-17#

Lead Story#

Federal Reserve Chair Kevin Warsh wrapped his debut policy meeting by holding interest rates steady at 3.5%-3.75%, but signaled a hawkish tilt that rattled bond markets. Warsh omitted a dot from the central bank’s closely watched “dot plot” and announced a task force to review the Fed’s $6.7 trillion balance sheet. The moves prompted a spike in short-dated Treasury yields and the dollar as traders moved to price in higher borrowing costs for 2026.

Markets & Economics#

• [US-Iran Deal Takes Effect as Both Sides Say Memorandum Signed] (Source): Oil prices slumped as the US and Iran officially signed an interim peace agreement electronically to reopen the Strait of Hormuz. The pact allows Tehran to immediately resume oil exports and tap a $300 billion economic development fund, triggering a sharp drop in global energy costs and easing global inflation concerns.
• [UK Inflation Unexpectedly Holds Steady at 2.8% in May] (Source): UK inflation unexpectedly held steady at 2.8%, indicating that price pressures were weaker than feared even before the US-Iran deal triggered energy price drops. The data bolstered the case for caution on interest rate hikes, sending gilts climbing for a fifth consecutive day.
• [BOJ Will Hike Rates Again by December, Says 90% of Economists] (Source): An overwhelming majority of Bank of Japan watchers expect the central bank to raise interest rates again by the end of the year following its recent hike. Meanwhile, the yen slumped to its weakest level against the dollar since July 2024, sparking fresh intervention warnings from strategists.
• [Brazil Central Bank Cuts Interest Rate to 14.25% Even as Inflation Outlook Worsens] (Source): Brazil’s central bank cut its key interest rate by a quarter-point for a third straight meeting. Policymakers are cautiously pressing ahead with an unwinding of ultra-tight monetary policy despite a worsening inflation outlook.

Business & Industries#

• [SpaceX Shares Fall for First Time Since Blockbuster Debut] (Source): SpaceX shares declined for the first time since their record initial public offering, snapping a three-day rally that had temporarily vaulted Elon Musk’s company past Amazon as the world’s fifth-largest stock. The debut was fueled by astronomical retail demand, including nearly $800 million from South Korean retail investors on the first day of trading.
• [BMW Sees Profit Margin as Low as 1% as China Demand Weakens] (Source): The German automaker warned its profit margin will plummet to as little as 1% this year. BMW cited weakening demand in China and fallout from the Middle East conflict, noting it will pursue additional cost savings beyond those already announced.
• [J&J Is Focused on Fighting Cancer, Not Obesity Drugs, CEO Says] (Source): Johnson & Johnson CEO Joaquin Duato confirmed the company has no plans to enter the booming obesity drug market. The decision sets J&J apart from rivals as it instead concentrates its efforts and acquisitions on diseases such as cancer.
• [DP World Seeks Return to US Container Operations at Texas Port] (Source): Dubai-based logistics giant DP World is in talks to develop a container terminal in Texas. The move would mark the company’s return to operating a US container port for the first time in two decades.

Policy & World#

• [G7 Aims to Ensure China Supplies No More Than 60% of Rare Earths] (Source): Group of Seven leaders agreed to reduce their reliance on China for critical minerals. The coalition aims to ensure that no single country supplies more than 60% of their critical mineral imports by 2030.
• [Burnham Risks Looking More and More Like the Man He Would Replace] (Source): UK Prime Minister Keir Starmer faces an imminent leadership crisis. If rival Andy Burnham wins a parliamentary seat in Thursday’s Makerfield by-election as expected, he is anticipated to immediately launch an assault on Starmer’s job.
• [Macron Seeks Way Around Trump’s Ban on Anthropic’s AI Models] (Source): French President Emmanuel Macron is leading talks with G7 leaders and tech executives to bypass a Trump administration ban. The US recently blocked foreign nationals from accessing Anthropic’s most powerful artificial intelligence models, unsettling American allies.

Opinion & Analysis#

• [The Bad Gnus on SpaceX] (Source): Bloomberg Opinion explores how the massive public market debut of Elon Musk’s SpaceX could destabilize indexes, warning that safety in numbers isn’t what it used to be for passive investors.
• [The Fed and ECB’s Rate Paths Look Confused] (Source): Analysis of the latest moves from the Federal Reserve and the European Central Bank suggests that global central bankers have the trajectory of policy rates all mixed up, if financial markets are any guide.