Zerohedge

Authored by Jack Phillips via The Epoch Times (emphasis ours),

The Department of Government Efficiency (DOGE) said over the weekend that agencies have terminated more federal contracts worth as much as $2.8 billion.

In a post on social media platform X on July 12, DOGE, a task force established by President Donald Trump in January, said that “over the last week, agencies terminated 230 wasteful contracts,” resulting in savings of $407 million.

That includes a contract from the U.S. Department of Agriculture for a “Mexico sustainable landscapes consultant” and a Treasury Department contract for “mentoring, evaluation, learning specialist services in Haiti,” according to the DOGE post. The post included what appears to be screenshots of the programs’ descriptions.

Earlier this month, DOGE’s website released an update that the task force has saved approximately $190 billion, which it says amounts to around $1,180 per taxpayer. So far, the Department of Health and Human Services, General Services Administration, Education Department, Office of Personnel Management, and Department of Labor have initiated the most cuts, according to the site.

Meanwhile, DOGE’s database shows that around 11,700 contracts have been terminated across all federal agencies, with an estimated saving of around $44 billion. At the same time, around 15,500 federal grants have been slashed, it shows, worth some $44 billion.

The update from DOGE comes as the Senate is slated to vote on spending cuts this week that would claw back $9.4 billion in public media and foreign aid spending. Senate Democrats are trying to kill the measure but need a few Republicans to join them.

Trump has asked lawmakers to rescind nearly $1.1 billion from the Corporation for Public Broadcasting, which represents the full amount it’s due to receive during the next two budget years.

On July 10, the president warned that he would withhold his backing for any Republican lawmaker who opposes the rescissions package, which also includes cuts to foreign aid.

“It is very important that all Republicans adhere to my Recissions Bill and, in particular, DEFUND THE CORPORATION FOR PUBLIC BROADCASTING (PBS and NPR), which is worse than CNN & MSDNC put together,” Trump said in a Truth Social post.

Trump went on to say that “any Republican that votes to allow this monstrosity to continue broadcasting will not have my support or Endorsement.”

Other than Trump, the White House has said that the public media system is politically biased and an unnecessary expense.

The corporation distributes more than two-thirds of the money to more than 1,500 locally operated public television and radio stations, with much of the remainder assigned to National Public Radio and Public Broadcasting Service to support national programming.

The update from DOGE over the past weekend suggests that the organization is still engaged in activities to identify and root out what it deems to be fraud, waste, and abuse within the federal government, following the departure of former White House special government employee Elon Musk from the administration in late May.

Musk, who had effectively served as a spokesperson and leader for DOGE during his time in the White House, has since had a falling out with the Trump administration and Republicans, announcing earlier this month that he would form his own political party.

The Associated Press contributed to this report.

Will the dreaded tariff-flation show up this time? Or will the excuse factory be required to spin the Trump-policy-driven price hike expectations as coming next time?

Expectations were for a modest acceleration in prices in June and headline Consumer Prices did just that rising 0.3% MoM (as expected) and +2.7% YoY (up from +2.4% prior and hotter than the +2.6% YoY expected)…

Source: Bloomberg

The MoM acceleration was driven by a flip from deflation to inflation for Energy prices…

Source: Bloomberg

The headline CPI YoY is the hottest since February but Core CPI printed cooler than expected (+0.1% MoM vs +0.2% MoM exp) with the YoY rise higher at +2.9% (as expected)…

Source: Bloomberg

Core Goods prices are accelerating on a YoY basis…

Source: Bloomberg

SuperCore CPI (Services ex-shelter) rose 0.36% MoM, lifting prices 3.34% YoY – highest since feb but well off the YTD highs

Source: Bloomberg

Medical Care Services costs are also starting to accelerate (not exactly tariff-driven)…

Source: Bloomberg

On a 3m- and 6m- annualized basis, there are no signs of the tariff-driven price hikes as yet…

Source: Bloomberg

Not exactly the damning evidence of terrifying tariff-flation that the establishment wants us to believe is coming…

No inflationary pass throughs. But they will absolutely, definitely show up next month, or maybe the month after, but certainly before 2030.
Because… “The lack of tariff inflation remains transitory” https://t.co/pbD9Cc3owN

— zerohedge (@zerohedge) July 15, 2025

Developing…

US equity futures are higher, led by Tech with the biggest overnight news being that Trump is allowing NVDA to resume its (less advanced) H2O chip sales to China; there had been chatter of a chips-for-rare earths pact to thaw US/China trade relations.  As of 8:00am ET, S&P futures rose 0.3%, while Nasdaq futures rose 0.5%, with NVDA jumping another +5.3% in pre-market trading, while AMD +3.5%, MRVL +2.85, AVGO +1.4% also gained. The balance of Mag7 is mostly higher; semis are poised to be the best sub-group, and cyclicals are higher with banks with a mild bid into earnings this morning. Bond yields are lower as the curve bull flattens into CPI with JPM noting that some FICC client convos are pointing to a dovish CPI print. The USD is weaker and commodities are declining across all 3 complexes though precious, crude, and sugar remain bid. Today’s focus is the unofficial kick off 25Q2 earnings and Banks have a low bar to cross and CPI is not yet expected to reflect the expected inflation from the trade war.  

In premarket trading, Mag 7 stocks were higher: Nvidia rose 4.4% as the company planned to resume sales of its H20 AI chip in China after securing Washington’s assurances that such shipments would get approved (Meta +0.6%, Apple +0.3%, Alphabet +0.2%, Amazon +0.2%, Tesla +0.2%, Microsoft -0.1%).

• Semiconductor firms also gain alongside Nvidia, including AMD (AMD) +5% and Broadcom (AVGO) +1.5%.
• Makers of wound-care products are falling after the US government proposed to change how skin substitutes are paid for.
• MiMedx (MDXG) tumbles 17% while Organogenesis (ORGO) sinks 25%
• BlackRock (BLK) falls 1.9% after the investment firm’s net inflows missed analyst estimates in the second quarter. The company’s reported assets under management beat the average analyst estimate.
• MP Materials (MP) gains 7% after Fox Business reported that Apple is set to announce a $500 million deal with the company for rare earths produced in the US, citing people familiar with the matter.
• Trade Desk (TTD) rallies 14% after S&P Dow Jones Indices said the advertising technology company will join the S&P 500 Index before trading opens on July 18.
• Wells Fargo & Co. (WFC) falls about 2% after lowering its full-year guidance for net interest income, after another quarter of tepid growth amid the ongoing trade war.

Outside of earnings, micro focus this am is on NVDA (+5%) with the company planning to resume H20 chip sales to China after assurances from Washington that shipments will be approved. After the White House banned exports in April, it’s a surprise reversal that may add billions to Nvidia’s revenue this year. The move may help spur easing tensions between US-China trade negotiations/furthers the “TACO” trade. TTD (+15%) set to replace ANSS in S&P 500. 

For Nvidia, the approval of export licenses for the H20 chip not only boosts its earnings prospects but also bodes well for progress in trade talks between the White House and key partners. With stocks trading near record highs, investors will also gain a clearer read on corporate health as major banks mark the unofficial start of earnings season.

“The US policy reversal on selling AI chips to China clearly constitutes good news for the industry,” said David Kruk, head of trading at La Financiere de L’Echiquier. “Other than that, the upward trend is still being fueled by investors riding the TACO trade — there are threats but they have yet to materialize.”

CPI is the big macro event for today: economist estimates for m/m change range from 0.1% to 0.4%, with the median 0.3%. June report is first of three to be released before Fed’s September meeting, for which traders have priced in 15bp of easing (see our CPI preview here). Goldman warns to watch for: 1) weakness in used cars, 2) modest increase in car insurance, 3) modest rebound in airfare, 4) +0.08pp increase on core inflation from tariff pressures. After months of seeing little inflation, CPI probably experienced slightly faster growth in June as companies started to pass along higher costs of imported merchandise associated with tariffs. The options market is betting the S&P 500 will swing 0.6% in either direction after the release. 

It’s still too early to gauge the impact of the Trump administration’s tariff agenda on inflation, said Arend Kapteyn, UBS Group AG’s global head of economic and strategy research. He noted that July’s data, set to be released next month, would likely provide the earliest indication of any clear effect. The lag is helping to underpin the Federal Reserve’s wait-and-see approach to cutting interest rates, with swaps pricing in less than two quarter-points of monetary easing this year.

“We’re about to go into a five- to six-month period of accelerating inflation,” Kapteyn told Bloomberg TV. “It’s a trade-off between when does the labor market starts to ease, starts to crack — and we’re already seeing some signs of that — versus how quickly is the inflation data increasing.”

The latgest Fund Managers Survey by Bank of America showed that fund managers are rushing back into risky assets at a record pace on optimism over economic growth and strong corporate profits. The share of investors taking a higher-than-normal risk level in their portfolios registered the biggest increase over a three-month span going back to 2001, the poll showed. It also pointed to strong increases in allocations to US and European stocks, as well as tech shares.

“We are still far from levels where we would advocate a short, but given valuation and positioning, it makes sense to take some chips off the table,” he said.

European stocks advance with the Stoxx 600 up 0.2%. Technology, media and auto shares are leading gains as Nvidia plans to resume sales of its H20 AI chip to China. Among individual stocks, B&M sinks to a record low following a weak first quarter. Here are the biggest European movers:

• European semiconductor stocks are gaining ground on Tuesday as Nvidia plans to resume sales of its H20 AI chip to China.
• Experian shares advance as much as 5.2%, touching a new record high, after the UK credit services firm reported first-quarter organic revenue growth that beat estimates.
• Orsted climbs as much as 6.4% after Morgan Stanley upgrades the Danish offshore wind developer to overweight from equal-weight, saying in note that an improving risk/reward makes it “worth a fresh look.”
• Accelleron shares jump as much as 13% to a record high after the Swiss engine parts maker raised its guidance.
• Trustpilot Group shares rise 12% to the highest since March after the British holding company’s preliminary first-half revenue beat the average analyst estimate.
• TomTom shares rise as much as 11% on Tuesday after the GPS-maker narrowed its revenue forecast for the full year by lifting the bottom rung of the range.
• Ericsson shares fall as much as 4.4% after the telecom equipment maker said sales growth in 3Q is expected to be below average seasonality over the past three years.
• B&M shares plunge as much as 14%, hitting their lowest level on record, after posting weaker topline growth than anticipated in the first quarter despite weak comparatives and favorable weather.
• Barratt Redrow shares plummet as much as 13%, after the property developer said it built fewer houses than hoped in FY25 and posted disappointing guidance for FY26.
• Solvay falls as much as 4.2% as JPMorgan says it “joins the profit warning party,” with the Belgian firm becoming the latest in the European chemicals space to cut its guidance.
• AFRY slumps as much as 9.2% after its second-quarter results, the Swedish engineering consultancy’s biggest decline since its previous quarterly statement in late April.
• Azoty shares drop 3.1% to the lowest since June 24 after Orlen indicated it’s not interested in buying the Polish chemicals producer’s polymers project.

Earlier in the session, Asian stocks also advanced as Nvidia’s plan to resume some chip sales to China stoked optimism over geopolitics. Chinese shares were mixed as the latest economic data raised concerns over pressure on domestic consumption. The MSCI Asia Pacific Index gained as much as 0.7% after Nvidia said it plans to restart sales of its H20 AI accelerator to China. Alibaba, Tencent and TSMC were the biggest boosts to the gauge. Benchmarks in Hong Kong, Taiwan and South Korea advanced. Mainland Chinese shares fluctuated after macro numbers showed an uneven recovery. While economic growth exceeded expectations in the second quarter thanks to strong exports to markets outside the US, consumer demand at home remained weak. That’s bound to keep investors cautious after a recent equity rally.  Elsewhere, traders are positioning for the weekend upper house election in Japan. Sentiment is cautious, as a surge in bond yields underscored mounting worries about the nation’s fiscal situation. Markets are watching the JGB yield breakout ahead of upper house elections & potential pressure on US rates. 

In FX, the Bloomberg Dollar Spot Index falls 0.2% ahead of US inflation data that is forecast to show an acceleration in CPI for June. The euro and pound both add 0.2%. 

In rates, Treasuries climb, pushing US 10-year yields down 2 bps to 4.41% ahead of June CPI data, supported by bigger gains in European bond markets, where curves are similarly flatter.  European government bonds rise with little reaction seen in bunds to stronger-than-expected German ZEW data and a beat for euro-area industrial production. Short-dated US government bond yields rose after Treasury Secretary Scott Bessent said it would be confusing for Federal Reserve Chair Jerome Powell to remain at the central bank after his term ends, adding that a “formal process” has already begun to identify a potential successor.

In commodities, oil prices are little changed, paring earlier losses with WTI near $67 a barrel. Spot gold climbs $18 to around $3,362/oz. Bitcoin retreats 3% to near $117,000. 

Looking at today’s calendar, US economic data slate includes July Empire manufacturing and June CPI (8:30am). Fed speaker slate includes Bowman (9:15am), Barr (12:45pm), Barkin (1pm), Collins (2:45pm) and Logan (7:45pm).

Market Snapshot

• S&P 500 mini +0.3%
• Nasdaq 100 mini +0.6%
• Russell 2000 mini little changed
• Stoxx Europe 600 +0.2%
• DAX +0.1%, CAC 40 little changed
• 10-year Treasury yield -2 basis points at 4.41%
• VIX -0.4 points at 16.8
• Bloomberg Dollar Index -0.1% at 1200.91
• euro +0.2% at $1.1682
• WTI crude little changed at $67.03/barrel

Top Overnight News

• Fed Chair Powell responded to Senate Banking Chair Scott and Senator Warren regarding building renovations in which he stated the inspector general had full access to project information and receives monthly reports, while he has asked the board’s inspector general to take a fresh look at the project, according to Politico and Reuters
• Stocks advanced after Nvidia Corp. secured US assurances to resume sales of some artificial intelligence chips to China, lifting sentiment on a busy day that also features inflation data and big bank earnings.
• Gold advanced, recovering from Monday’s modest drop, as investors digested mixed messages from the US regarding the progress of trade negotiations.
• Japan’s long-term government debt yield touched the highest level since 2008, as a raft of election tax-cut pledges puts investors on edge and risks higher costs all around in the country.
• Liquidity in sovereign bond markets is falling and term premium is rising. With little sign of budgetary restraint almost anywhere, a fiscal crisis in a developed bond market is not inconceivable.
• Euro hedging costs are subdued ahead of key US inflation data, as summer trading conditions and a shift in market focus toward labor metrics dampen demand for short-dated gamma.
• Stocks traders appear to be looking past the possibility of a stronger-than-expected inflation reading on Tuesday, putting them in a vulnerable position if President Donald Trump’s trade war leaves its mark on US consumer prices.
• US President Donald Trump’s latest threat of 100% tariffs on Russia would risk complicating relations with two nations crucial to his economic and strategic goals: China and India.
• Kevin Warsh, a top contender to replace Jerome Powell as chair of the Federal Reserve, is finally ready to cut interest rates. As a governor at the US central bank from 2006 to 2011, Warsh called for higher rates even in the depths of the financial crisis, warning often of impending inflation. That’s a concern he’s reiterated as recently as last year. But this year, Warsh has become an enthusiastic supporter of lower borrowing costs.

Trade/Tariffs

• US Department of Commerce announced it is withdrawing from and terminating the 2019 agreement suspending anti-dumping duty investigation on fresh tomatoes from Mexico, while it is issuing an anti-dumping duty order, resulting in duties of 17.09% on most imports of tomatoes from Mexico.
• Mexico’s Economy Ministry rejected the US decision on tomato duties which it considered unfair and against the interests of both Mexican producers and US industry, while it will support local tomato producers to seek a deal under which the duty is suspended.
• EU draws up retaliatory tariffs for US goods in case a trade deal is not reached with aircraft and booze among imports targeted as EU debates how to respond to Trump’s latest trade threats, according to WSJ.
• Japanese PM Ishiba and trade negotiator Akazawa are to meet with US Treasury Secretary Bessent during his trip to Japan, while the meeting is being considered for July 18th in Tokyo, according to Yomiuri.
• Japan’s Economy Minister and trade negotiator Akazawa said Japan is still arranging the makeup of attendees for the US National Day at Osaka Expo, while he added they will continue dialogue through various channels to seek an agreement with the US on tariffs.

A more detailed look at global markets courtesy of Newsquawk

APAC stocks were ultimately mixed with the region indecisive in the aftermath of the latest Chinese GDP and activity data, while participants also awaited CPI data and the start of earnings season stateside. ASX 200 gained with strength in tech and some defensive sectors, while the positive sentiment was also facilitated by an increase in Consumer Confidence and as Australian PM Albanese met with Chinese President Xi. Nikkei 225 traded indecisively following recent currency weakness and rising JGB yields. Hang Seng and Shanghai Comp diverged following the somewhat mixed tier-1 data releases from China in which GDP figures for Q2 and Industrial Production in June topped forecasts but Retail Sales and Fixed Assets Investments disappointed, while House Prices were varied and continued to contract.

Top Asian News

• Chinese President Xi met with Australian PM Albanese and said it is most important to seek common ground while sharing differences and that China is ready to work with the Australian side to push bilateral ties further and make great progress. Furthermore, Australian PM Albanese said in the meeting with Chinese President Xi that they welcome progress on cooperation on free trade and value their relationship with China, while he added they will continue to approach the relationship in a calm and consistent manner guided by their national interest.
• China’s stats bureau spokesperson reiterated that the economic foundation needs to be consolidated and stated that overall economic performance in H1 was stable with steady progress, although structural contradictions within the economy have not been fundamentally alleviated. The stats bureau official stated that domestic demand as a contribution to economic growth has been a driving force for GDP but noted that they need to improve investment structure and environment, while the real estate market is heading towards stabilisation and policy support to boost consumption in H1 should sustain spending in H2. Furthermore, it was stated that China is at a critical moment in improving consumption structure and it will supplement policy support with measures to ensure a stable operation of the economy.
• China held its urban work conference and will vigorously promote the optimisation of urban structure, while it will pay more attention to overall urban planning and make efforts to build innovative cities with vitality, according to Xinhua.
• Japan and the EU will issue a joint statement to strengthen economic alliance with a focus on trade, tech and supply chain coordination, according to Yomiuri.
• China Commerce Ministry announces revisions to export control catalogue. Revises procedures for handling Gallium metal extraction tech. Adds battery cathode material prep tech to control list.

European bourses (STOXX 600 +0.3%) are modestly firmer across the board, paring some of the pressure seen in the prior session but with gains capped ahead of today’s key risk event, US CPI. European sectors hold a positive bias. Tech takes the top spot, with the chip sector boosted after NVIDIA (+5.0% pre-market) said it will resume H20 AI chip shipments to China. Telecoms is pressured by post-earning losses in Ericsson (-2.4%).

Top European News

• BoE is announcing a “package of measures designed to maintain stability in the financial sector while offering new growth opportunities for mid-sized banks and building societies.”.
• Incoming ECB member Radev says any further steps should remain firmly data dependent; I share the view that the threshold for additional rate cuts should remain high”.
• UK Chancellor Reeves says under new reforms, banks will send investment opportunities to savers with cash sitting in low interest accounts for the first time. Govt will allow long term asst funds to be held in stocks and shares ISAs next year

FX

• DXY is giving back some of Monday’s gains in quiet trade as markets await crucial CPI data for June. Core M/M CPI is expected to pick up to 0.3% from 0.1% with the Y/Y rate seen rising to 3.0% from 2.8%. The release will be parsed for any evidence that Trump’s tariff policy is adding to price pressures in the US. DXY briefly made its way onto a 98 handle, matchings Monday’s best at 98.12.
• EUR is firmer vs. the broadly weaker USD as markets await any material breakthrough in US-EU trade negotiations. On which, WSJ reports that the EU has drawn up retaliatory tariffs for US goods in the event a trade deal is not reached with aircraft and booze among the imports targeted. Elsewhere, it was reported that the ECB is to discuss a more negative scenario next week than previously envisaged in June after Trump’s latest tariff threat, but is still seen as holding rates at the meeting. German ZEW data showed a better-than-expected improvement for the expectations and current conditions components but failed to have any sway on EUR. Elsewhere, French political risk could be a focus later today with French PM Bayrou to outline a plan to narrow France’s deficit; will likely lead to calls for a vote of no confidence.
• JPY flat vs. the USD, halting a recent run of declines. Yen traders are still trying to assess the likelihood of an imminent US-Japan trade deal. Yen traders will also be mindful of the movements in the back-end of the Japanese curve, which, in part, has been supported by expectations of looser fiscal policy by Japan as a result of this weekend’s election. USD/JPY ventured as high as 147.88 overnight before fading upside.
• GBP is a touch firmer vs. the USD and flat vs. the EUR. Newsflow surrounding the UK have been quiet at the start of the week given the UK has already secured a trade agreement with the US. However, newsflow is set to pick up with Mansion House text releases from BoE Governor Bailey and Chancellor Reeves due at 21:00BST today.
• Antipodeans are both towards the top of the G10 leaderboard on account of the bounce back in risk sentiment seen today. Both also digested mixed tier-1 data releases from China in which GDP figures for Q2 and Industrial Production in June topped forecasts, but Retail Sales and Fixed Assets Investments disappointed, while House Prices were varied and continued to contract.
• CAD is a touch softer vs. the USD in the run up to Canadian inflation metrics (coincides with the US release). As it stands, the BoC is currently on pause and avoiding forward guidance with the central bank taking a meeting-by-meeting due to economic uncertainty.
• PBoC set USD/CNY mid-point at 7.1498 vs exp. 7.1758 (Prev. 7.1491)

Fixed Income

• USTs are flat and in narrow ranges ahead of US CPI. CPI is expected to pick up to 0.3% M/M in June (prev. 0.1%) for both the headline and core. While the Y/Y is seen at 2.7% (prev. 2.4%) and 3.0% (prev. 2.8%) for the headline and core respectively. A series that will be, primarily, scrutinised for any signs of tariff-induced price pressures.
• Bunds are leading peers, firmer by just under 50 ticks at best having peaked at 129.65 thus far. Upside that takes the benchmark to within reach of Friday’s 129.74 peak but leaves it shy of 130.00 and then multiple past peaks above, which continue all the way back to 131.95 from mid-June when the recent downward trend began. Outperformance potentially as the complex takes a breather from recent pressure and as traders digest reports the ECB will discuss a more negative tariff scenario at next week’s meeting. No move in Bunds following the German ZEW figures, which were firmer-than-expected.
• OATs also firmer but to a lesser degree than Bunds. PM Bayrou from 15:00BST will begin presenting details of the 2026 budget. The goal will be cost savings of EUR 40bln by 2026, in order to bring the deficit-to-GDP ratio down to 4.6% vs the 5.4% projected for 2025, in-line with their fiscal commitments to the EU.
• Gilts are firmer, between USTs and Bunds in terms of magnitude. The immediate docket is light for the UK as we count down to the Mansion House speeches by BoE’s Bailey and Chancellor Reeves; the latter expected to announce a package amounting to the ‘biggest financial regulation reforms in a decade’. Into this, Gilts are at the upper-end of a 91.86 to 92.06 band. Notching a WTD peak and now eyeing 92.19 from last Thursday before that week’s 92.63 best.
• UK DMO sells GBP 1.0bln in 4.25% 2032 Gilts via tender: b/c 4.42x & avg. yield 4.161%.
• Germany sells EUR 3.899bln vs exp. EUR 5bln 1.90% 2027 Schatz: b/c 2.3x, average yield 1.87% and retention 22.02%.

Commodities

• WTI and Brent are currently lower in what has been a choppy session thus far; price action overnight was rangebound which continued into European hours where newsflow remained light up until a Trump-Russia related FT article. The report suggested that US President Trump asked Ukraine’s Zelenskiy if Ukraine could hit Moscow if the US provided them with long-range weapons; the Ukrainian President replied with “absolutely…”. This report sparked some modest upside, which then continued for around 30 minutes thereafter, taking Brent Sept’25 to a fresh session peak of USD 69.36/bbl.
• Precious metals are mixed, with slight gains seen in spot Silver/Gold whilst Palladium is a little lower. The yellow-metal currently trades towards the upper end of a USD 3,341.55-3,365.72/oz range, but with price action fairly muted ahead of US CPI. 3M LME Copper trades towards the mid-point of a narrow USD 9,602.33-9,656.5/t range.
• Base metals hold a negative bias, with incremental losses seen in 3M LME Copper prices as trades digest the latest Chinese GDP and activity metrics.
• Kazakhstan’s PM Bektenov says they try to comply with OPEC+ commitments as much as possible. Not considering options to withdraw from the deal.
• China has lowered gasoline and diesel prices by CNY 130/ton and CNY 124/ton, respectively as of July 16th.

Geopolitics

• US President Trump reportedly asked Ukrainian President Zelensky if Ukraine could hit Moscow in the scenario that the US provided long-ranged weapons, via FT citing sources; call that this conversation occurred within took place on July 4th. To the question from Trump, Zelensky reportedly replied, “Absolutely. We can if you give us the weapons.” Trump reportedly signalled support for the idea, as a strategy to force Russia to the negotiating table. US president said to have encouraged Ukrainian leader to “step up deep strikes on Russia”.
• Russian Kremlin says US President Trump’s statement is serious and needs to be analysed Putin will comment on it if he deems it necessary. Decisions taken in Washington and Brussels are seen by Ukraine as a signal to continue the war. Russia is ready for a next round of talks with Ukraine. However, there have been no proposals for the Ukraine side so far.
• EU Foreign Representative Kallas says it is a good sign that the US appears to realise Russia does not want peace with Ukraine, hope the US will move forward with more sanctions against Russia.
• “Hamas member and leader Faraj al-Ghoul was killed in an Israeli raid”, according to Al Arabiya.

US Event Calendar

• 8:30 am: Jul Empire Manufacturing, est. -9.2, prior -16
• 8:30 am: Jun CPI MoM, est. 0.3%, prior 0.1%
• 8:30 am: Jun CPI Ex Food and Energy MoM, est. 0.26%, prior 0.1%
• 8:30 am: Jun CPI YoY, est. 2.6%, prior 2.4%
• 8:30 am: Jun CPI Ex Food and Energy YoY, est. 2.93%, prior 2.8%
• 8:30 am: Jun CPI Index NSA, est. 322.51, prior 321.46
• 8:30 am: Jun CPI Core Index SA, est. 327.82, prior 326.85

Central Banks Speakers

• 9:15 am: Fed’s Bowman Gives Welcoming Remarks
• 12:45 pm: Fed’s Barr Speaks on Financial Inclusion
• 1:00 pm: Fed’s Barkin Gives Speech in Baltimore
• 2:45 pm: Fed’s Collins Delivers Closing Keynote at NABelgium Event
• 7:45 pm: Fed’s Logan Speaks on the Economy

DB’s Jim Reid concludes the overnight wrap

Welcome to US CPI day and to the start of US earnings season with several banks reporting later on. I’ve just about recovered from a day out yesterday at a Theme Park where I managed to get away with just one baby rollercoaster. Maisie and the twins went on about 20! They are all now tall enough to not need me anymore for ALL the rides. My job here is done! I never have to go on a rollercoaster again. My biggest stress was trying to keep up with a very tense game of cricket between England and India without my wife knowing I wasn’t paying attention to what the family were saying. The CPI print will get my full attention today though as a lot will rest on inflation in the coming months including whether the Fed can cut rates, how the Trump administration’s tariff policy will be received, and most importantly how it impacts long-end bonds with fiscal balance sheets stretched in many countries. See our US economists’ preview here. They expect monthly headline CPI to come in at a 5-month high of +0.34%, with core also at a 5-month high of +0.32%. We seem to be the highest on the street with consensus at +0.27% and +0.25% respectively.

If DB is correct, that would push up the year-on-year numbers, with headline CPI up three-tenths to +2.7%, and core CPI up two-tenths to +3.0%. Consensus is a tenth lower on both. We’ll mostly be focusing on signs of tariff-related inflation in the core good categories. President Trump continued to beat the low inflation drum yesterday though, saying “we have no inflation”, and that “we should be less than 1%” when referring to interest rates.

Ahead of today’s big print, markets have been a bit mixed to start the week as the weekend tariff headlines reverberate, and global long-end bonds continued to edge higher. However US futures are edging up this morning (Nasdaq futures +0.3%) after Nvidia have seemingly been given the green light to resume exporting their H20 chips to China that were suspended in April.

We saw significant headlines on Russia yesterday, as Trump threatened to impose 100% “secondary tariffs” if a ceasefire deal with Ukraine isn’t reached in 50 days. Trump’s announcement was vague on details, with Commerce Secretary Lutnick referring to both “tariffs” and “secondary sanctions”. Reporting later on appeared to confirm that this would include tariffs against buyers of Russian minerals, similar to a proposed sanctions bill in the Senate that is now set to be paused. This could impact the likes of China and India, which account for most of Russia’s oil exports, though there are doubts over how practical such secondary tariffs would be to implement. For now, with any swift definitive sanctions against Russian oil being avoided, oil prices actually saw a decent slump yesterday. Brent crude fell -1.63% to $69.21/bbl, which helped to ease some of the inflationary fears after the weekend tariff announcements. Trump’s comments came during his meeting with NATO Secretary General Rutte, at which he also announced that the US will send additional Patriot air-defense systems to Ukraine that will be paid for by Europe.

Trump also made some brief remarks on trade, saying that he is “always open to talk”, including with the EU, even as he insisted the recent US letters to trading partners “are the deals” and “there are no deals to make”. That left plenty of ambiguity as markets continued to digest the 30% tariff threats made to the EU and Mexico over the weekend. According to AFP, the European Commission said it would propose a new list of US goods worth €72bn that could be subject to EU tariffs should talks between Washington and Brussels fail. Our European economists yesterday published a blog on the potential impact of 30% tariffs (see here).

For the most part, markets yesterday brushed off the prospects of fresh trade escalation, with the STOXX 600 (-0.06%) recovering to little changed after opening -0.6% down. The more trade-sensitive German DAX did decline by -0.39%, alongside a -0.27% fall for the CAC 40, but the FSTMIB (+0.27%) advanced and here in the UK the FTSE 100 (+0.64%) hit a fresh all-time high. Mexican equities struggled a bit more though, with the S&P/BMW IPC index falling -0.41%. This came as President Sheinbaum confirmed that Mexico has a tariff plan should an agreement by August 1 fail.

The equity performance was more positive in the US, with the S&P 500 (+0.14%) closing within 0.2% of last week’s record high. The resilience came as Bitcoin (+2.10%) continued to climb past $120,000 and to a new record, helping fintech and payments companies like PayPal (+3.55%), Coinbase (+1.80%) and Visa (+0.74%). Bitcoin is now up nearly +75% since the US election last November. The Magnificent 7 (+0.10%) saw a modest gain yesterday, with Meta up +0.48% after CEO Zuckerberg said it will invest “hundreds of billions” in a push for AI superintelligence.

Ahead of today’s CPI release, fed futures slightly dialled back their expectations for rate cuts this year, with the amount priced by December down -1.8bps on the day to 48bps, its lowest in nearly four weeks. That helped to push Treasury yields higher, with the 2yr yield (+1.4bps) rising to 3.90%, whilst the 10yr yield (+2.4bps) rose to 4.43% and 30yr closed +2.8bps to 4.98%, the highest close since May 23. Overnight, Treasury yields are flat as we go to print but 30yr JGB yields are up another +1.9bps ahead of the Upper House elections this weekend and have traded at their highest level since 1999. 10yr JGBs are around a basis point higher and earlier touched the highest level since 2008. So lots bubbling under the surface in Japan.

Meanwhile in Europe, yields also moved higher yesterday amidst growing concern about the fiscal trajectory, with those on 10yr bunds (+0.6bps), OATs (+2.0bps) and BTPs (+2.2bps) all rising. There was also a fresh rise in 30yr yields to multi-year highs, with the 30yr yields in Germany (+2.1bps to 3.24%) and France (+4.5bps to 4.24%) reaching their highest levels since 2011. For France, that followed President Macron’s announcement that the 2026 defence budget would be increased by €3.5bn in 2026, followed by another €3bn in 2027. By contrast, UK gilts outperformed, with the 10yr yield down -2.2bps on the day.

In Asia markets are mixed. Chinese stocks are underperforming, with the Hang Seng (+0.08%) struggling to maintain its initial gains despite Nvidia’s H20 announcement, while the CSI (-0.45%) and the Shanghai Composite (-0.98%) are both declining. The Nikkei (+0.12%) is seeing slight gains, and the S&P/ASX 200 (+0.54%) is also trading positively. However, South Korea’s KOSPI (-0.11%) is dipping after a good run.

Returning to China, GDP increased by +5.2% in the second quarter, outperforming Bloomberg’s estimates of +5.1%, although this marks a deceleration from the +5.4% growth recorded in the first quarter. Most of the growth bias is export led over domestic, which was backed up by retail sales growth decelerating to 4.8% YoY in June (v/s +5.3% expected), down from a 6.4% YoY increase in May. Industrial output rose by +6.8% YoY though, exceeding market expectations of 5.6%. Fixed asset investment increased by +2.8% in the first half of this year, falling short of market predictions of a +3.6% rise. Simultaneously, the decline in real estate investment intensified, dropping -11.2% in the first half of the year, compared to a -10.9% decrease in the first five months, while investments in infrastructure and manufacturing also showed signs of slowing.

Finally, as I mentioned at the top, “Crypto Week” is happening in Washington D.C., where the House of Representatives are set to vote on the CLARITY Act, the GENIUS Act and the Anti-CBDC Surveillance Act. The GENIUS Act’s vote in particular could have serious implications for the rapidly growing stablecoin industry – and for US debt markets – and a vote can be expected as early as end of today.

To the day ahead now, as I mentioned look out for the US CPI release. We’ll also get the US July Empire Manufacturing Index, Germany’s July ZEW Survey, Eurozone May Industrial Production, and Canada’s June CPI. Central bank speakers include the Fed’s Bowman, Barr, Collins and Barkin, and BoE Governor Bailey. Earnings include JPMorgan Chase, Wells Fargo, BlackRock, Citigroup and BNY Mellon

On Monday an explosive-laden drone sought to target vital infrastructure in northern Iraq, in an area known to host final remnants of US troops and officials. The US has long been most closely involved with Iraqi Kurdistan.

The drone carrying explosives was intercepted and brought down early Monday near Erbil International Airport in Iraq’s semi-autonomous Kurdistan region, local officials said. A later, separate nighttime (Monday) attack targeted a key oil field in the region.

The region’s Directorate General of Counter Terrorism stated that the drone targeting the airport was shot down at 2:20 a.m. local time (2320 GMT on Sunday).

While no casualties or property damage resulted, and no group has taken responsibility for the incident so far, it suggests the possibility that Iran-allied Shia paramilitaries could be ready to cause havoc, following the 12-day Israel-Iran war last June, which the US also became involved in through bombing three nuclear facilities.

Iraq has seen a rise in drone-related attacks in recent weeks – with for example earlier this month security forces having shot down another explosive drone near Erbil Airport.

And recently similar device was intercepted near a Kurdish Peshmerga base in Kirkuk province. This brings up the possibility of anti-Kurdish factions, or even the possibility of remnant ISIS cells.

In the night hours of Monday, there are new reports of yet another drone attack in the region, and this time unverified videos suggest that damage has been done (unconfirmed):

Pictures of the oil field in Erbil province, Iraqi Kurdistan, targeted by anonymous drones. pic.twitter.com/63M1cdqB6Q

— The Outpost (@outpostosint) July 14, 2025

According to Rudaw English, a Kurdish regional outlet:

Two explosive-laden drones target the Khurmala oil field in Erbil province, resulting in no casualties – citing Kurdish counterterrorism units.

The oil field lies southwest of Erbil, and reports suggest they were intercepted by US-led coalition forces on Monday night. The area lies about 60 kilometers from Erbil city.

Q2 earnings season has officially begun as the big banks start reporting results, and the first one as usual is JPMorgan, with no surprises after yet another top and bottom line beat. Here is a snapshot of what the largest US banks just reported:

• Adjusted EPS $4.96, beating estimates of $4.47
• Adjusted revenue $45.68 billion, beating estimates of $44.05 billion, but down $5.3 billion from a year ago due to a slide in non-interest revenue. 
• Managed net interest income $23.31 billion, missing estimate $23.59 billion
  • FICC sales & trading revenue $5.69 billion, beating estimates of $5.22 billion
  • Equities sales & trading revenue $3.25 billion, beating estimate of $3.2 billion
  • Investment banking revenue $2.68 billion, beating estimates of  $2.16 billion
  • Advisory revenue $844 million, beating estimates of $672.2 million
  • Equity underwriting rev. $465 million, beating estimates of $351.4 million
  • Debt underwriting rev. $1.20 billion, beating estimates of $1.01 billion

JPMorgan’s provision for Q2 credit losses was $2.85BN, below the est. $3.22BN, as a result of net charge-offs of $2.41 billion (just under the $2.46 billion estimated) and a reserve build which shrank to $0.4 billion, down from $1.0 billion in Q1 and $0.8 billion a year ago. The bank said that charge-offs were”“primarily driven by Card Services.” Putting this number in context, JPMorgan reported a credit card net charge-off rate of 3.4%, less than the 3.66% that analysts predicted. And some more context: American credit card balances hit $1.18 trillion outstanding in the first three months of the year, according to the Federal Reserve Bank of New York.

The effective tax rate for the company was 18.0%, below the 21.3% managed tax rate. This is notable because the bank discussed a “significant item” which appears to be an income tax benefit that represents $774 million of net income (and $0.28 of earnings per share).  Some more from a footnote: “Second-quarter 2025 net income, earnings per share and ROTCE excluding the $774mm income tax benefit are non-GAAP financial measures. Excluding this item resulted in a decrease of $774mm (after tax) to reported net income from $15.0B to $14.2B; a decrease of $0.28 per share to reported EPS from $5.24 to $4.96; and a decrease of 1% to ROTCE from 21% to 20%. Management believes these measures provide useful information to investors and analysts in assessing the firm’s results.” 

And visually:

Commenting on the quarter, Jamie Dimon called the results “strong” noting that “each of the lines of business performed well.” Discussing CIB, he noted that “we supported clients as they navigated volatile market conditions” adding that the group “gained momentum as market sentiment improved.” In CCB, Dimon touted about 500,000 net new checking accounts, and cited “positive early reactions” to the “refreshed Sapphire Reserve.” In AWM, “asset management fees rose 10%.” 

And while Dimon mentions the announced dividend boost, he says the bank has “far in excess of our required capital levels,” along with “an extraordinary amount of liquidity.” Sure enough, JPMorgan’s return on equity hit 18%, which then goes all the way up to 21% if you’re using ROTCE. Here it is visualized.

The positive sentiment from Dimon in his comments also extended to the US economy, which he says “remained resilient.” Looking ahead, he calls out “the finalization of tax reform and potential deregulation,” as you might expect. But Dimon added a word of warning that “significant risks persist,” especially “from tariffs and trade uncertainty, worsening geopolitical conditions, high fiscal deficits and elevated asset prices.”

Turning to the most profitable group, Commercial and Investment Banking, JPMorgan’s traders notched a record first half with $8.9 billion in markets revenue.
The volatility around trade policy drove a lot of activity as investors repositioned their holdings. 

• JPMorgan’s FICC revenue topped predictions, coming in at $5.7 billion, beating estimates of $5.22 billion,  “driven by higher revenue in Currencies & Emerging Markets, Rates and Commodities, partially offset by lower revenue in the Securitized Products Group and Fixed Income Financing.” 
• Equity Sales and Trading of $3.25 billion also beat estimates of $3.2 billion, “driven by higher revenue across products, notably in Derivatives.“
• Investment banking revenue also beat expectations, coming in at $2.7 billion, up 9%. The number was 15% higher from the prior year, boding well for typical leaders Goldman Sachs and Morgan Stanley, which report on July 16. As BBG reminds us, one thing to note is that JPM floated an internal memo from yesterday which said that the bank is creating a unit focused specifically on bespoke financing structures as public and private markets converge.

Elsewhere, average loans were up 5% year over year and average deposits were up 6%, with both up 3% if you’re looking at quarter over quarter. 

Taking a quick look at the bank’s asset and wealth management division, the group generated $1.5 billion of net income up 17% compared to a year ago as net revenue was up 10% to $5.8 billion, “driven by growth in management fees on strong net inflows and higher average market levels, as well as higher brokerage activity and higher deposit balances.” Assets under management were up 18% to $4.3 trillion and client assets were up 19% to $6.4 trillion, “driven by continued net inflows and higher market levels.” And yet $3.7 billion of noninterest expense was up 5%, “driven by higher compensation, including higher revenue-related compensation and continued growth in private banking advisor teams, as well as higher distribution fees.” 

Finally, while the corporate division is usually ignored by most investors, this quarter it was somewhat more notable as it generated $1.7 billion of net income down a remarkable-sounding $5.1 billion. Here’s why: $49 million of noninterest revenue was down $7.7 billion, “driven by the absence of the $7.9 billion net gain related to Visa shares in the prior year, partially offset by lower net investment securities losses.”

Another notable item: “the current quarter included a $774 million income tax benefit” – that’s the one we talked about earlier – “driven by the resolution of certain tax audits and the impact of tax regulations finalized in 2024 related to foreign currency translation gains and losses.” Expect this disclosure to spark questions during the investor call. 

JPM also reported 317,160 employees down slightly from 318,477 in this year’s first quarter, but up from 313,206 a year ago. This leads directly to the bank’s $13.7 billion of compensation expense which was just higher than what analysts expected. 

The bank also reported a total $4.55 trillion of assets, which represents a 10% jump from where they were only a year ago, a whopping increase. As Bloomberg puts it, “It’s like the biggest bank in the US bought two big regional rivals — a pair of top-20 US banks — in the span of 12 months or so.” Or, rather, was gifted as in the case of the 2023 bank crisis when the FDIC promptly made Jamie Dimon an even bigger billionaire. 

Finally, looking at the company’s outlook, it once again raised its net interest income projection by $1 billion, from $94.5 billion to $95.5 billion.

The results, which generally beat across the board, were solid but not stellar enough to blow the market away which had already priced JPM stock to perfection, and the shares are trading fractionally lower premarket just shy of record highs.

Full Q2 presentation below

Nvidia shares rose as much as 5% in premarket trading in New York after the company announced in a blog post that exports of its H20 AI chips to China would be approved under a U.S. export license — a major reversal from the Trump administration’s earlier stance aimed at curbing Beijing’s AI ambitions.

Nvidia CEO Jensen Huang visited the White House last week, appeared in a CNN interview on Sunday, and is now in China, where he met with government and industry officials to discuss AI.

In his CNN interview, Huang emphasized that ensuring U.S. leadership in the AI race requires global AI systems to be built on the American tech stack, not Chinese technology. In other words, export restrictions on Nvidia chips would need to be lifted.

Nvidia’s blog post provided further details on the resumption of H20 AI chip shipments to China:

In Beijing, Huang met with government and industry officials to discuss how AI will raise productivity and expand opportunity. The discussions underscored how researchers worldwide can advance safe and secure AI for the benefit of all.

Huang also provided an update to customers, noting that NVIDIA is filing applications to sell the NVIDIA H20 GPU again. The U.S. government has assured NVIDIA that licenses will be granted, and NVIDIA hopes to start deliveries soon.

Well telegraphed… 

• Nvidia CEO Makes Pit Stop At White House Before China Trip

• “Don’t Have To Worry”: Nvidia CEO Says China’s Army Won’t Rely On U.S. AI Chips

• Nvidia CEO Calls Biden-Era AI Curbs A “Failure” With China

Nvidia previously projected it would lose billions of dollars in revenue this quarter due to sales restrictions. In the fiscal first quarter, it took a $4.5 billion charge related to the licensing rule, citing “excess inventory and purchase obligations as demand for the H20 diminished.” The company estimated that the rule led to $2.5 billion in lost first-quarter revenue and anticipated an additional $8 billion in losses in the second quarter. 

In May, Huang told investors, “The $50 billion China market is effectively closed to U.S. industry.” Now it appears the Chinese market is back on the table. 

The approval of export licenses for the H20 chip will serve as a goodwill gesture by the Trump administration to progress trade talks with Beijing.

Apple is reportedly set to join the Pentagon as an investor in MP Materials and announce a $500 million partnership with the company, according to a Fox Business report citing individuals familiar with the matter this morning.

MP shares surged more than 10% on the news in a move that comes after a more than 100% gain over the last several months for the critical U.S. rare Earth mineral company. 

The deal includes a commitment from Apple to purchase rare earth magnets produced at MP’s facility in Texas, using domestically sourced materials. As part of the agreement, the two companies are also expected to develop a new recycling facility in Mountain Pass, California, to recover and repurpose rare earth elements from used electronics.

In addition, Apple and MP plan to build a second manufacturing plant in Fort Worth, Texas, further solidifying a U.S.-based supply chain for these critical materials.

Over a month ago, we flagged MP and USA Rare Earth as two companies likely to be major winners from Washington’s rare earth reshoring push—particularly under policies aimed at reducing reliance on China. Since we first mentioned it more than a month ago, the stock is up more than 100%.

We noted at the time that MP’s uniquely central role in the domestic rare earth supply chain positioned it for outperformance, and we pointed out that the stock had an enormous 21% short interest, making it ripe for a squeeze.

Recall that one year ago, in our April 2024 note titled “Next Big Mineral Trade Revealed by Morgan Stanley,” we identified MP Materials as “one company that stands to benefit” from the restoration of America’s rare earth supply chain. 

Further, our most recent report for subscribers “The Coming Rare Earth Revolution And How To Profit: All You Need To Know About The “Ex-China Supply Chain“ detailed why MP stood to substantially outperform in the coming months and years as the critical rare earth supply chain was shifted domestically to exclude China, and to benefit domestic miners and producers such as MP. 

Our conviction was promptly validated days ago when the U.S. government—via the State Department and the Pentagon—took a 15% stake in MP, an exceedingly rare move that made the U.S. the company’s largest shareholder.

The investment marked a “transformational” public-private partnership by the Trump admin, aimed at building a domestic rare earth element supply chain. As part of the deal, the Pentagon will receive convertible preferred shares and warrants equal to a 15% stake—surpassing stakes held by CEO James Litinsky and BlackRock. The shares convert at $30.03 each and carry no cash dividend.

MP stock surged over 50% on the news, becoming the top performer in the mining sector this year and more than covering the cost of our premium subscription for readers who acted quickly.

That was great news. But it was even better news that among the biggest shorts were Goldman’s hedge fund clients who, for months, had plotted and schemed how to unobtrusively short the name during the bank’s various idea dinner events.

Here is an excerpt from the latest note by Goldman energy and natural resources specialist Adam Wijaya out days ago:

Rare Earths… how high… biggest move in the space yesterday came from Rare Earths complex… led by MP +51%… have hosted several Metals idea dinners over the last few weeks and this name has been a consensus short… pain yesterday was real…

Now, that pain is very likely going to continue today. Thanks, “Tim Apple”. 

Authored by Frank Fang via The Epoch Times (emphasis ours),

Eight Chinese nationals on student visas in the United States have been indicted for their alleged role in a scam targeting elderly Americans through fraudulent computer pop-ups, the U.S. Attorney’s Office for the Middle District of Pennsylvania announced on July 11.

The defendants, who came to the United States to attend college, are accused of defrauding more than 50 victims across 19 states out of more than $10 million. They were indicted by a federal grand jury in Williamsport, Pennsylvania, for conspiracy to commit wire fraud.

“These indictments highlight the relentless efforts of Homeland Security Investigations [HSI] to safeguard our elderly population from complex fraud operations,” Edward V. Owens, HSI Philadelphia special agent in charge, said in a statement.

“Schemes like these cause significant emotional and financial harm to elderly victims across the country. HSI, in partnership with the FBI, remains steadfast in our commitment to securing justice for the victims and ensuring that those responsible are held fully accountable.”

The defendants are Yankun Jiang, 24, and Hanlin Yang, 24, both of State College, Pennsylvania; Chenhao Chen, 25, Xiaoqing Tu, 24, and Dongjie Lu, 35, all three of California; Lei Bao, 22, of New York; Kuo Zhang, 31, of New Jersey; and Jiacheng Zhang, 25, of Florida.

According to the second superseding indictment, the defendants are accused of running the computer pop-up scam from August 2023 to February 2024. The pop-ups were disguised as coming from Microsoft, falsely warning victims that their computers had been hacked and displaying a phone number to call for help.

When victims called the number, they were allegedly fed various lies, for example, that their bank accounts were “not secure” and that they would need to withdraw from their savings, according to the court document.

To conceal their crimes, the defendants allegedly instructed the victims not to tell anyone what they had been told, and to tell banks that the large cash withdrawals were for purposes such as “home remodeling,” the court document states.

The defendants or “couriers” who were part of the conspiracy allegedly traveled to the victims’ homes to collect the money while impersonating a “federal agent” or “federal marshal,” according to the court document.

If convicted, each defendant faces a maximum penalty of 20 years in prison and a fine.

Jiacheng Zhang and his lawyer could not be reached for comment.

Chen’s lawyer declined to comment when contacted by The Epoch Times.

The Epoch Times contacted the remaining six defendants’ lawyers for comment but did not receive a response by publication time.

The FBI released tips to help the public protect themselves from tech support and government impersonation scams in January 2024. The agency asks people not to click on unsolicited pop-ups on their computers or contact unknown telephone numbers provided in pop-ups, texts, or emails.

The Federal Trade Commission warns on its website that scammers might disguise pop-up windows as error messages from computers’ operating systems or antivirus software, as well as logos from trusted companies or websites.

“Real security warnings and messages will never ask you to call a phone number,” the Federal Trade Commission states.

In April, the Pinellas County Sheriff’s Office in Florida issued a warning regarding a scam targeting locals through fake computer pop-ups disguised as antivirus company McAfee’s security alerts, saying one victim had already lost more than $530,000.

The sheriff’s office asked the public to always use up-to-date security software and to never allow remote access to their computers in response to unexpected pop-ups.

In recent months, there have been other cases involving Chinese nationals in connection with scams.

In April, a federal grand jury in California indicted a Chinese citizen, who was a former resident of San Jose, California, for alleged involvement in a government impersonation scam. According to prosecutors, an elderly victim, who was allegedly tricked into believing that there was a federal warrant for her, lost more than $780,000 to the scam.

In May, a Chinese citizen was accused of impersonating a U.S. marshal in an attempt to con a New York state resident out of $98,000.

A Chinese-built maglev train, set to become the country’s fastest ground transport vehicle, was publicly unveiled this week at the 17th Modern Railways exhibition in Beijing, according to South China Morning Post. 

Developed by China Railway Rolling Stock Corporation (CRRC), the train can reach speeds of 600km/h (373mph) and is designed to drastically cut travel times and strengthen China’s global lead in high-speed rail.

The train features a sleek, aerodynamic nose to reduce drag, and a futuristic interior with a large digital display.

The train is intended to function as a “point-to-point transport tool” between major cities, complementing existing high-speed rail. At full speed, it could cut the Beijing–Shanghai trip from 5.5 hours to about 2.5.

“This model is equipped with a fully automated driving function … [which] requires integrating a variety of technologies such as 5G communication, AI video capture, acoustic sensing, and the deployment of various types of sensors along the line,” CRRC engineer Shao Nan said.

He also noted the train aims to “fill the speed gap between high-speed rail and aviation within 2,000km,” blending the efficiency of rail with the speed of flight.

The maglev uses superconducting magnets to levitate above the track after reaching 150km/h, eliminating friction and enabling lower noise, no emissions, and reduced maintenance. Before that speed, the train runs on rubber wheels. The project is still undergoing route tests and safety evaluations before commercial launch.

Though China opened its first low-speed maglev line in 2003 with German technology, and domestic versions in Changsha (2016) and Beijing (2017), these earlier systems were limited to 120km/h. The new maglev marks a significant leap forward.

South China Morning Post writes that China’s broader high-speed rail network has rapidly expanded to 48,000km by the end of 2024, the largest in the world, with plans to surpass 50,000km this year.

CRRC’s maglev is just one of several cutting-edge transport projects underway. In 2024, China tested its maglev hyperloop project, aiming to eventually reach 1,000km/h, and researchers developed AI-based suspension systems to counter high-speed vibrations and improve ride comfort.

Despite these advances, experts cited by SCMP caution that the sector still faces steep technical and financial hurdles, including the high cost of building dedicated maglev and hyperloop infrastructure and the need for advanced technologies like superconducting magnets.

Via The Cradle

Syria has signed an $800-million agreement with Dubai-based DP World to redevelop the Tartous Port, state media reported on Sunday. The deal was signed in Damascus in the presence of self-appointed Syrian interim President Ahmad al-Sharaa.

The agreement grants DP World a 30-year term to operate and upgrade Tartous, one of Syria’s most strategic coastal hubs. Syrian officials say the deal is part of a wider push to modernize the country’s logistics infrastructure.

“This strategic move will bolster our port operations and logistics services,” an unnamed Syrian official told SANA. Qutaiba Badawi, chairman of the General Authority for Land and Sea Ports, called the deal “a new phase of field and maritime work in Syria.”

DP World chairman Sultan Ahmed bin Sulayem said the agreement would position Tartous as a global transport node.  “Syria possesses valuable assets,” he said, adding, “The port of Tartous will be one of the best in the world, particularly in transport and cargo handling services.”

According to Badawi, the contract was the result of months of negotiations and was structured to be “tight, fair and transparent.”

The agreement includes infrastructure and technological upgrades to expand Tartous’s cargo capacity and support the recovery of Syria’s industrial and commercial sectors.

The Tartous contract follows a series of high-value agreements signed in recent months, including a 30-year deal with France’s CMA CGM to operate Latakia Port and a $7-billion energy contract with Qatari, Turkish, and US firms to restore the power grid.

The US lifted most of its sanctions on Syria last month, citing what it called “positive actions” by Sharaa’s administration.

US President Donald Trump has revoked the Foreign Terrorist Organization designation for the Nusra Front, later known as Hayat Tahrir al-Sham (HTS), according to a State Department memo filed on 7 July.

In December 2024, HTS – under the leadership of Ahmad al-Sharaa (who went by the name Abu Mohammad al-Julani when he was still an ISIS chief) – successfully ousted former Syrian president Bashar al-Assad and took power in Damascus. 

On June 7, Syria was reinstated to the SWIFT banking system, as Damascus began implementing financial reforms under Central Bank Governor Abdul Qader al-Husriya.

The Tartous Port deal comes seven months after HTS declared the ousting of the Assad government following its capture of Damascus and the flight of former president Bashar al-Assad.