Bloomberg — 2026-07-11#

Lead Story#

The global economic and geopolitical landscape is being rocked by escalating tensions in the Middle East as the US launched a third round of strikes on Iran after Tehran declared the vital Strait of Hormuz closed “until further notice”. Iran has firmly rejected President Donald Trump’s push for peace talks without a ceasefire, while Trump warned of devastating military retaliation if assassination plots against him proceed, raising fresh alarms over global energy flows, supply chains, and inflation.

Markets & Economics#

• Banks’ Record Bond Short Sparks Quest for Answers: For the first time in recent history, primary dealers have built a net short position on debt they traditionally held in massive volumes. The unprecedented positioning is sending ripples through credit markets as investors hunt for the underlying catalyst.
• Warsh and US Inflation Will Set Tone for July Fed Decision: Incoming Federal Reserve Chairman Kevin Warsh is preparing for his inaugural appearance before Congress over two days of testimony. Warsh, backed by newly appointed advisory task forces, will parse fresh US inflation data that is expected to heavily influence July’s monetary policy decisions.
• Fuel Prices Are Slamming Consumers Even as Crude Crisis Fades: Gasoline, diesel, and jet fuel costs are climbing even as crude oil eases, a rare decoupling squeezing peak-season travelers. The stubborn price divergence threatens to undermine President Trump’s pledges to quash inflation ahead of the midterm elections.
• Homes Are in Short Supply in the US. How a New Law Could Change the Market: A sweeping new law containing dozens of affordability provisions aims to execute the most significant US housing supply expansion in decades. The legislation went into effect without fanfare after President Trump derided the package as a “yawn” and refused to attach his signature.

Business & Industries#

• Vinod Khosla-Led Group to Buy Seattle Seahawks in Major NFL Deal: Tech billionaire Vinod Khosla is leading a consortium that has agreed to purchase the Seattle Seahawks. The blockbuster acquisition is broadly expected to set a new valuation record for the National Football League.
• VW CEO Under Pressure as Labor Unions Torpedo Turnaround Plan: Volkswagen AG Chief Executive Officer Oliver Blume faces an escalating crisis after failing to secure initial supervisory board backing for a fundamental corporate overhaul. Heavy resistance from powerful labor unions is severely complicating efforts to restructure Europe’s largest automaker.
• EasyJet Has Private Equity Firms Going Out of Their Comfort Zone: Two US funds are locked in a bidding war for UK discount carrier EasyJet Plc. The aggressive buyout interest is highly unusual for the notoriously volatile and low-margin airline sector, indicating a potential shift in private equity risk appetite.
• China Power Load Hits Early Record as Data, EV Demand Rises: Exacerbating global energy constraints, China’s nationwide electricity load spiked to an unprecedented 1.518 billion kilowatts on July 10. The National Energy Administration attributes the surge to blistering heat alongside accelerating structural demand from electric vehicles and data centers.

Policy & World#

• EU Warns Push to Diversify Away From China Will Need Funding: The European Union is crafting a new “solidarity instrument” to financially backstop companies shifting critical supply chains out of China. The mechanism is designed to absorb the economic shock of potential retaliatory measures from Beijing during a trade conflict.
• Ukraine Building Patriots Is in Lockheed’s Interest, McCaul Says: Representative Michael McCaul is arguing that defense giants like Lockheed Martin should support allowing Ukraine to domestically manufacture Patriot missile interceptors. His push follows President Trump’s pledge to grant a weapons system license, aiming to bypass severe US supply chain constraints.
• US Subpoenas New York Times Journalists Over Air Force One Story: Federal prosecutors issued late-night subpoenas to four New York Times reporters, demanding they reveal confidential sources behind two reports. The targeted stories detailed security vulnerabilities on the new Qatari-gifted presidential jet.
• Modi Courts Indo-Pacific Partners as China, US Reshape Region: Prime Minister Narendra Modi wrapped up a three-nation tour aimed at elevating India’s regional alliances, culminating in a new strategic partnership with New Zealand. The diplomatic push focuses on maritime security, critical minerals, and trade as regional powers hedge against China’s rise and US uncertainty.

Opinion & Analysis#

• Can the Tax System Keep Up with Trillionaires?: Following Elon Musk crossing the trillion-dollar threshold after SpaceX’s IPO, Nobel Laureate Paul Krugman and Yale economist Natasha Sarin argue the milestone exposes critical flaws in a century-old tax code. They warn that an economy structured to disproportionately reward the ownership of rapidly appreciating assets is reigniting fierce debates over systemic inequality and unchecked political influence.
• Are Memory Chips Entering a Supercycle? Michael Burry Says No: Famed investor Michael Burry is pushing back against the prevailing tech sector narrative, arguing that memory chip makers are not embarking on a new supercycle. Burry warns that the highly complex supply-demand dynamics of the industry frequently catch overly optimistic investors off guard.