Bloomberg — 2026-07-12#

Lead Story#

Global markets were rattled this weekend as the US and Iran exchanged a fresh wave of military strikes, prompting Tehran to declare the critical Strait of Hormuz closed. While maritime advisories indicate the southern shipping route remains open, the escalating conflict has already sent oil prices surging and US equity futures dipping as traders assess the geopolitical fallout and supply risks.

Markets & Economics#

• Oil Climbs, US Futures Dip on Fresh Iran Strikes: Markets Wrap: Oil jumped and US equity futures fell after another round of US strikes against Iran heightened uncertainty over the Strait of Hormuz. Gold also declined as the resulting jump in energy prices fueled bets on further interest-rate hikes to combat inflation.
• Markets Watch Walsh’s First Testimony: Federal Reserve Chair Kevin Walsh is expected to emphasize price stability during his inaugural Humphrey-Hawkins testimony, with investors closely watching for signals on how rising energy prices might alter the Fed’s tightening path.
• Funds Fret Over $4.4 Trillion AI Trio’s Grip on Emerging Markets: Investors are beginning to rotate beyond the dominant artificial intelligence trade in emerging markets, where just three tech stocks worth $4.4 trillion are driving an outsized share of returns.
• Korea’s World-Beating Stocks Are Now Trading Cheaper Than Ever: Following a blistering rally, South Korean equities are surprisingly trading at record-low valuations, presenting a highly unusual backdrop for investors.

Business & Industries#

• DOJ Investigating Allegations Against UAW President Shawn Fain: The US Justice Department has opened a grand jury investigation into allegations that United Auto Workers President Shawn Fain pressured another union official to secure benefits for his fiancée and her sister.
• Big Banks Set Up Strong Earnings Week: Major US banks are poised to report robust earnings fueled by resilient lending, trading, and investment banking, as markets look for clues on consumer health and AI-related financing.
• 7-Eleven Owner Drops Go-It-Alone Strategy for SoftBank Embrace: Seven & i Holdings is moving to sell a stake to SoftBank and PayPay, signaling a willingness to cede some control to strategic partners to secure its future.
• Nippon Paint Said to Offer $8.6 Billion for Akzo Nobel Paint Arm: Nippon Paint Holdings has reportedly made multiple bids in the past month to acquire Akzo Nobel’s decorative paints business in an $8.6 billion play for industry consolidation.
• Low Debut for ‘Moana’ Deepens Disney’s Live-Action Remake Woes: Disney’s live-action Moana posted a disappointing $43 million opening weekend in the US and Canada, a weak showing for a franchise that traditionally drives strong profits.

Policy & World#

• Lindsey Graham, Senate Hawk Who Became Trump Ally, Dies at 71: Senior South Carolina Senator Lindsey Graham has died, leaving a significant void in US foreign policy and depriving allies like Ukraine of a key conduit to Donald Trump. The sudden loss also triggers a high-stakes succession battle ahead of the midterms.
• Zelenskyy Removes Ukrainian Premier in Broader Cabinet Reshuffle: Ukrainian President Volodymyr Zelenskyy is overhauling his government and replacing the prime minister. The move aims to align Kyiv’s political strategy as the war drags on and focuses on bolstering energy resilience ahead of the winter.
• China Rejects South China Sea Ruling on 10-Year Anniversary: Beijing issued a renewed rejection of the landmark South China Sea arbitration ruling, pushing back against a joint statement from the US and its allies marking the decision’s 10th anniversary.
• Bangladesh Says Next Deal With IMF Must Ensure Economic Security: Distancing the government from previous terms, Bangladesh’s finance minister stated that any new agreement with the International Monetary Fund must prioritize economic security and protect ordinary citizens.

Opinion & Analysis#

• Why the Birthrate Panic Has a Blind Spot: Contrary to dire warnings, declining global birthrates do not guarantee permanently lower growth or an end to innovation, as supply chains and technology evolve to bridge demographic gaps.
• The Soy Shock Lesson for China’s Rare-Earths Threat: The 1973 “soy shock” embargo in Japan offers a potent historical parallel for understanding the psychological and economic ramifications of China’s current dominance over rare-earth minerals.