Good Afternoon. Inflation’s still the hot word, Nvidia’s still the golden child, and Jamie Dimon is dipping his toes into crypto—again. Grab your iced coffee and let’s dive in.

—Rosie, Wyatt, Evan & Conor

🔥 What’s Hot: 🔥

🥶 What’s Not: 🥶

1. US inflation rises as tariffs drive up prices

The News: U.S. inflation rose to 2.7% in June, up from 2.4% in May and the fastest since February, as President Trump’s tariffs began pushing up prices on everyday goods like coffee, clothing, and citrus fruit. The Labor Department reported that while energy and housing remain the main drivers, tariffs are now fueling price hikes across appliances and groceries. Analysts say the effect is likely to grow as the average tariff rate climbs and more increases are threatened for August.

Why It Matters: If your grocery bill or favorite treats seem pricier, you’re feeling the ripple of tariffs hitting the checkout line. While officials claim the impact is minimal, most economists say American households will face rising costs as tariff-driven inflation builds. With more hikes on the horizon and the Fed holding rates steady, this signals a new chapter of trade-war-driven price pressures that could shape the economy and your wallet in the months ahead.
Source: bbc.com

2. Jamie Dimon says JPMorgan Chase will get involved in stablecoins as fintech threat looms

The News: JPMorgan Chase CEO Jamie Dimon says the bank will actively participate in both stablecoins and deposit coins, acknowledging that while he’s skeptical about stablecoins’ appeal, JPMorgan can’t afford to sit out as fintech competitors race to innovate in digital payments. Rival banks like Citigroup and Bank of America have also confirmed they’re exploring stablecoins and tokenized deposits.

Why It Matters: Wall Street’s biggest banks are pivoting toward stablecoins to defend their dominance in payments, signaling that digital dollars are moving mainstream. As regulatory clarity emerges and fintech challengers push for cheaper, faster transactions, traditional banking giants like JPMorgan are scrambling to adapt potentially transforming how trillions move around the globe and speeding up the race to digitize the financial system.
Source: cnbc.com

3. BlackRock Shares Tumble After Big Client Redemption

The News: BlackRock shares fell more than 5% on Tuesday after the world’s largest asset manager reported quarterly revenue below expectations, with a $52 billion redemption from a single large Asian institutional client blunting net inflows. Despite record assets under management of $12.53 trillion and a 6.5% rise in net income to $1.59 billion, the sudden outflow raised concerns about further redemptions and contributed to BlackRock’s steepest one-day stock drop in months.

Why It Matters: BlackRock’s results highlight the risks even global investing powerhouses face from concentrated client relationships, with single outflows capable of rattling the world’s biggest asset managers. The episode signals how quickly fortunes can shift for firms riding record stock markets, and underscores the challenges traditional fund managers face as clients—especially in Asia—grow more active in reallocating their capital.
Source: wsj.com

4. Nvidia sets new record set to restart China AI chip sales after US reversal

The News: Nvidia shares surged over 4% on Tuesday as the AI chip giant announced it is applying to resume sales of its H20 GPUs in China, following a U.S. export ban that cost the company billions in lost revenue. The U.S. government has indicated it will approve Nvidia’s license, allowing deliveries to China to start soon. Rival AMD also surged on news it plans to resume China shipments, pending regulatory approval.

Why It Matters: Nvidia’s rapid stock recovery underscores its dominance in global AI hardware—and highlights how quickly policy changes can swing fortunes for America’s top tech companies. China accounts for 13% of Nvidia’s revenue, making access to this market critical. The U.S. export ban revealed the high stakes of tech competition with China, but renewed sales could add billions to Nvidia’s bottom line and reshape the global AI chip race.
Source: finance.yahoo.com

5. Bessent confirms process to replace Fed chair Powell has begun

The News: U.S. Treasury Secretary Scott Bessent has confirmed that the formal process to select a successor to Federal Reserve Chair Jerome Powell is underway, according to Bloomberg. Bessent suggested Powell should step down from the Fed Board entirely when his term as chair expires in May 2026. Former Fed Governor Kevin Warsh is seen as the leading candidate, while other contenders include Bessent himself, former World Bank President David Malpass, and economist Kevin Hassett.

Why It Matters: The search for Powell’s replacement is a pivotal moment for U.S. monetary policy, as Trump seeks a chair who aligns more closely with his push for lower interest rates. The outcome will likely influence the Fed’s approach to inflation, rate cuts, and economic growth at a time of heightened political and economic uncertainty, setting the tone for the next era of U.S. central banking.
Source: foxbusiness.com

1. China restricts EV battery tech exports amid trade tensions

The News: China has imposed new export controls on key electric vehicle battery manufacturing technologies, requiring government approval before companies can share know-how abroad. The rules target core processes for producing advanced lithium battery materials, tightening Beijing’s grip on the global EV supply chain just as Western countries push to reduce their dependence on Chinese tech.

Why It Matters: This is a major speed bump for global automakers and tech companies scrambling to build batteries outside China. With China dominating production of critical battery materials, the new restrictions could slow efforts in the U.S. and Europe to launch homegrown battery plants, potentially raising costs, delaying green car rollouts, and keeping the world’s EV future tied to Beijing’s rules. As trade tensions escalate, expect more supply chain headaches and higher stakes for who controls the next era of transportation.
Source: morningstar.com

2. French PM proposes scrapping 2 public holidays in debt crisis

The News: French Prime Minister François Bayrou unveiled a dramatic austerity plan on Tuesday that would eliminate two cherished public holidays—Easter Monday and May 8’s WWII Victory Day—in a bid to tackle France’s soaring debt. The move is part of a €43.8 billion budget crackdown aiming to cut the deficit to 4.6% of GDP by 2026 and eventually meet strict EU fiscal targets.

Why It Matters: Scrapping holidays for budget savings is about as unpopular as it gets, and it’s already triggering fierce backlash from across the political spectrum. The stakes? France’s debt is at crisis levels, and Bayrou’s plan is a last-ditch effort to avoid a Greece-style reckoning. But with parliament divided and unions threatening unrest, expect a fiery autumn of protests, political drama, and questions over whether France can rein in spending without igniting a social and political crisis.
Source: lemonde.fr

3. US appeals court halts order for Argentina to give up 51% YPF stake

The News: A U.S. appeals court has temporarily halted an order requiring Argentina to hand over its 51% stake in oil and gas giant YPF to satisfy a $16.1 billion court judgment, granting the country a brief reprieve as it fights to keep control of its largest energy asset.

Why It Matters: The case spotlights the growing global power of litigation funders and the risks nations face in U.S. courts over past state actions. For Argentina, losing YPF would be a major economic and political blow, potentially upending its energy policy and further destabilizing its finances. The appeals court’s intervention also signals broader concerns about sovereign immunity and the precedent of forcing countries to forfeit critical assets abroad, with the U.S. government itself warning of possible international backlash if the order is upheld.
Source: elpais.com

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