Foreign headlines on July 14
Global financial media last night and this morning The headlines of common concern include: Trump says he will resume blockade of Iran and plans to charge 20% compensation for shipments in the Strait of Hormuz Russian crude oil output falls to lowest level in two-and-a-half years The top five Wall Street banks expect combined second-quarter trading revenue to be close to $39 billion Apple lawsuit stymies OpenAI's ambition to challenge iPhone Fed governor makes a big statement: Waller says that to control core inflation, interest rates may need to be raised soon Traders expect the Fed under War to raise interest rates this month has about a 50% chance U.S. President Donald Trump said the United States would reinstate a blockade of Iranian ships passing through the Strait of Hormuz and demand 20 percent compensation for all other cargo shipped through the waterway. Trump declared on Monday that the United States would be the "guardian" of the strait. His comments intensified an ongoing dispute between Tehran and Washington over the status of access to the Strait of Hormuz, which has been at the center of a dispute amid renewed conflict between the two countries. The U.S. Central Command stated in a statement that the U.S. military will resume the blockade of traffic in and out of Iranian ports and coastal areas starting at 4 p.m. New York time on July 14. Oil prices rose more than 9% on Monday, while stocks and bonds fell as traders quickly priced in expectations that shipping in the Strait of Hormuz could slow down again. Russia's crude oil output fell to lowest level in at least 2-1/2 years in June as Ukraine attacks almost daily According to OPEC's monthly report, Russian producers produced an average of 8.928 million barrels of crude oil per day in June. The data underscore the enormous pressure on Russia's oil industry, which has been forced to export large quantities of crude oil after Ukrainian drone attacks caused Russian refineries to cut processing capacity. OPEC data based on secondary sources showed that Russia in June The output is 834,000 barrels lower than the target agreed by OPEC and its allies, and 61,000 barrels lower than the slightly downwardly revised May daily output. The largest U.S. banks will kick off the second-quarter earnings season on Tuesday, with five of them reporting results on the same day. The banks have benefited from increased customer trading activity as a result of intense market volatility over the past few months. Analysts expect Total trading revenue in the second quarter will be nearly $39 billion. Most of the banks' equity-trading desks are on track to post near-record revenue, just shy of the highs set in the first quarter. Among them, Goldman Sachs’ stock trading department’s revenue may once again set a new record, with second-quarter revenue expected to exceed $5 billion. Keefe, Bruyette & Woods analyst Chris McGratty and others said in a report that banks such as Morgan Stanley with large exposure to the Asian stock market are particularly expected to benefit from market volatility in the region. Apple accuses OpenAI of systematic theft of its intellectual property, a lawsuit that could derail the AI company's ambitions to develop hardware devices long before the case is ultimately resolved. In a lawsuit filed last week, iPhone maker Apple claimed that OpenAI asked former Apple employees and even potential Apple recruits to provide it with information about Apple's unreleased products. Apple also claims that OpenAI instructed new hires to circumvent its security procedures using a checklist developed by the company's former iPhone design chief. Apple is seeking monetary damages and a court order for OpenAI to cease its alleged conduct and destroy all proprietary material. Legal remedies may take months or years to materialize, but the consequences of the lawsuit itself are likely to be felt sooner, as the legal battle could put pressure on OpenAI's hiring and product development plans. Federal Reserve Governor Christopher Waller said policymakers may need to raise interest rates in the near term if underlying inflation continues to indicate widespread price pressures. "If core inflation spikes again this week, the FOMC will need to consider tightening monetary policy in the near term," Waller said in a speech prepared for an event in New York on Monday. The U.S. Bureau of Labor Statistics will release the latest consumer price data on Tuesday.
Traders see a close to 50-50 chance of a U.S. interest rate hike later this month as another rise in oil prices and hawkish comments from Federal Reserve officials signal that the central bank may move quickly to curb inflation. Money market pricing on Monday showed traders had increased bets on a 25 basis point rate hike in July after the United States launched a series of new strikes against Iran; pricing showed the likelihood of a rate hike was close to 50%, up from less than 40% earlier in the day, after Fed Governor Christopher Waller said policymakers may need to raise interest rates if underlying inflation continues to show widespread price pressures. The 2-year U.S. Treasury yield, which is most sensitive to changes in Fed policy expectations, once rose 7 basis points to 4.28%, the highest since February 2025. The 5-year yield hit a similar high of 4.37%, while the benchmark 10-year U.S. Treasury yield rose as much as 6 basis points to 4.62%, the highest since May. Open a futures account on Sina's cooperative platform, safe, fast and guaranteed
Traders see a close to 50-50 chance of a U.S. interest rate hike later this month as another rise in oil prices and hawkish comments from Federal Reserve officials signal that the central bank may move quickly to curb inflation. Money market pricing on Monday showed traders had increased bets on a 25 basis point rate hike in July after the United States launched a series of new strikes against Iran; pricing showed the likelihood of a rate hike was close to 50%, up from less than 40% earlier in the day, after Fed Governor Christopher Waller said policymakers may need to raise interest rates if underlying inflation continues to show widespread price pressures. The 2-year U.S. Treasury yield, which is most sensitive to changes in Fed policy expectations, once rose 7 basis points to 4.28%, the highest since February 2025. The 5-year yield hit a similar high of 4.37%, while the benchmark 10-year U.S. Treasury yield rose as much as 6 basis points to 4.62%, the highest since May. Open a futures account on Sina's cooperative platform, safe, fast and guaranteed