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President Trump has announced a 50% tariff on U.S. copper imports and Brazilian goods starting August 1, citing national security. He linked Brazil's tariff hike to political grievances with President Lula. Trump also revealed duties on 21 other nations and warned the EU of pending rates. The copper tariff led to a rush for imports before enforcement. Former U.S. trade official Brad Setser warned: “This shows the danger of having tariffs that are under the unilateral control of one man.” EU talks aim to avert further escalation, with possible auto sector protections under discussion. Meanwhile, Bloomberg looks at how tariffs are leaving small businesses dazed as they bear the brunt of the impact.

 

Bloomberg

Bloomberg

Reuters

The Financial Stability Board (FSB) urged tighter regulation of non-bank financial institutions, which now hold nearly half of global financial assets. FSB Chair Andrew Bailey said hedge funds amplified market instability during events like COVID-19 and Archegos’ collapse. The report recommends imposing leverage limits, stricter margin requirements, and position disclosures. Bailey warned: “These trends can amplify shocks and impact liquidity.” While regulators cite systemic risks, industry groups like MFA argue that such caps could harm economic growth. The FSB emphasized cross-border coordination to manage growing market influence from non-bank entities like hedge funds and insurers.

 

Reuters

The SEC has maintained a consistent volume of enforcement actions during the Trump administration, filing 44 cases from Inauguration Day to the end of June, compared to 48 in the same period last year. Mark Bini, a partner at Reed Smith, remarked: “Everyone expected there to be a lot less SEC activity, because there's been downsizing of government and a change in priorities.” This stability comes despite a reduction in Biden-era actions targeting crypto and securities dealers, alongside potential cuts in personnel and funding.

 

Bloomberg Law

Private-equity recruiting is pressuring first-year banking analysts with grueling speed-dating-style interviews and job offers for roles starting years later. Firms compete aggressively to secure top talent early, sometimes reaching out before graduates even begin their jobs. In response, major banks like Morgan Stanley and Goldman Sachs have introduced stricter disclosure policies. JPMorgan now warns incoming analysts they risk termination if they accept future-dated offers within their first 18 months. Base pay in private equity can exceed $300,000, attracting young professionals despite repetitive early tasks and high stress. The intensity of this recruiting cycle has led some PE firms to delay offers, with Apollo and General Atlantic pausing their 2027 class hires. Though banks benefit from future client relationships with ex-employees, senior leaders like Jamie Dimon condemn the system as unethical. Some banks now aim to balance transparency and workforce management by excluding soon-to-depart analysts from sensitive deal work.

 

Wall Street Journal

The Commerce Department's Census Bureau reported Wednesday that U.S. wholesale sales for May declined 0.3% from April, to $697.2bn. On an annual basis, they were 4.8% higher. Inventories were also down 0.3%, and totaled $905.5bn. Sales of durable goods crept up by 0.2% during the month, while sales of non-durable goods declined by 0.8%. The inventory to sales ratio was unchanged from April, at 1.3.

 

ForexLive

Investing

RTT News

President Trump claims renewables destabilize the U.S. power grid, but Texas—home to the most solar and wind power—shows otherwise, reports Reuters. ERCOT, Texas’ grid operator, reports a dramatically reduced blackout risk, forecasting just a 0.30% chance for August, down from 12%. Prices there are 24% below the U.S. average. “ERCOT has done a good job…for energy and reliability,” said Joshua Rhodes of UT Austin. Despite past issues, such as 2021's gas-related outages, added battery storage now supports grid resilience. Critics warn Trump's rollback of renewables may harm energy stability, especially in fossil-fuel-heavy grids like PJM.

 

Reuters

The Trump administration has filed a lawsuit against California, claiming that the state's anti-animal cruelty laws impose "unnecessary red tape" that has driven up egg prices nationwide. The lawsuit, lodged in Los Angeles federal court, argues that the federal Egg Products Inspection Act of 1970 supersedes state regulations concerning eggs. This federal law mandates "national uniformity" in egg safety standards, allowing only the federal government to regulate egg safety. California's laws, which include voter initiatives aimed at reducing animal cruelty, have previously survived legal challenges. The lawsuit highlights the ongoing tension between state and federal regulations, particularly regarding agricultural practices.

 

U.S. News

NASA is set to lose around 2,145 senior-ranking employees as part of a staff reduction initiative, according to a report by Politico. Most of those leaving hold GS-13 to GS-15 positions, and the agency is offering early retirement, buyouts, and deferred resignations. Bethany Stevens, a spokesperson for NASA, said: "NASA remains committed to our mission as we work within a more prioritized budget." The layoffs come amid proposed budget cuts that threaten numerous science programs, and the agency currently lacks a confirmed administrator following the withdrawal of Jared Isaacman from consideration.

 

U.S. News

The U.S. Department of Agriculture will no longer consider race or sex in key farm programs, ending long-standing efforts to remedy historic discrimination. This shift aligns with the Trump administration’s broader rollback of DEI policies. The final rule, signed by acting General Counsel Ralph Linden, states USDA programs will now operate solely on “meritocracy, fairness, and equal opportunity.” The rule ends preferential access for “socially disadvantaged” farmers—a term used to prioritize farmers of color and women. Some targeted benefits remain for beginning and veteran farmers. Critics say the move undercuts USDA’s commitment to under-represented farmers, despite payments made in 2024 to address past bias. Only 4.5% of U.S. farmers identify as non-white or multiracial, according to the 2022 Census of Agriculture. 

 

Reuters

Bloomberg reports that Meta Platforms has made record-breaking compensation offers to attract AI experts to its “superintelligence” team, including a package exceeding $200m for ex-Apple engineer Ruoming Pang. These multi-year offers combine base salary, cash bonuses, and heavily performance-tied Meta stock. Apple reportedly did not counter due to internal pay norms. Meta’s AI recruitment push also includes former GitHub CEO Nat Friedman and Scale AI’s Alexandr Wang, now Meta’s Chief AI Officer via a $14.3bn equity deal. Offers rival CEO pay at major banks and are structured to reward long-term loyalty and Meta stock performance. OpenAI CEO Sam Altman said some employees received $100m signing bonuses but stayed due to OpenAI’s innovation culture. Nonetheless, Meta has hired over 10 OpenAI researchers along with talent from Anthropic and Google. The AI talent war continues, with Altman and Zuckerberg expected to cross paths at the Allen & Co. conference in Sun Valley.

 

Bloomberg

TikTok is set to launch a standalone app for U.S. users, operating on a distinct algorithm and data system from its global version. This initiative, internally dubbed “M2,” aims to address data security concerns and could lead to a potential sale orchestrated by President Donald Trump. The new app is expected to be ready by September and will primarily utilize data from U.S. users to train its recommendation algorithms, distancing itself from TikTok's global operations. As Trump stated, "I think the deal is good for China and it's good for us," indicating ongoing negotiations regarding TikTok's future. The separation of the U.S. app from its international counterpart is a significant step amid political pressure for ByteDance to divest its U.S. business.

 

Reuters

Ford’s $3bn EV battery plant in Marshall, Michigan, will still qualify for federal tax credits due to last-minute changes in Congress’ budget bill. Though the bill slashes key green energy incentives, it allows the Ford plant to proceed despite using Chinese-licensed technology from CATL. “BlueOval Battery Park Michigan is on track to qualify for the production tax credit — a win for our customers and a win for American competitiveness,” Ford said. Critics argue the broader legislation harms EV development by removing buyer tax credits and easing emissions rules, though some Republicans softened cuts to shield local economies.

 

New York Times

Ferrero is reportedly nearing a $3bn deal to buy cereal maker WK Kellogg, an acquisition that would combine two of the world's best known consumer food makers. an acquisition that would combine two of the world's best known consumer food makers. The Italian owner of the Ferrero Rocher, Kinder and TicTac brands has been expanding in recent years, buying Nestlé's confectionery business and several other food firms. WK Kellogg, a spin-off of Kellogg's cereal business in 2023, has been struggling with weak demand and declining sales as consumers have traded down from its pricier cereals. It has also come under scrutiny for its use of artificial food dyes in some of its cereals. The company recently said it met with U.S. Health Secretary Robert F. Kennedy Jr. and is reformulating its cereals served in schools to not include artificial dyes.

 

BBC News

CNBC

Financial Times

Reuters

Bloomberg reports that Claire's Stores is considering a potential bankruptcy for its U.S. operations, as it struggles with weak demand, higher import costs and a heavy debt burden. Houlihan Lokey Inc. has been working with the retailer to shore up its finances while also exploring a potential sale of all or part of its operations, which includes store networks in North America and Europe. The retailer has a roughly $477m term loan due in December 2026, and recently chose to defer interest payments on its debt as a way to conserve cash.

 

Bloomberg

Fintech has significantly boosted job growth in London, with new vacancies in financial services increasing by 3% quarter-on-quarter, as reported by Morgan McKinley's London Employment Monitor. The demand for risk professionals has surged, particularly following recent cyber attacks on major retailers, prompting a hiring spree for compliance experts. Mark Astbury, director at Morgan McKinley, noted that “many firms remain cautious on headcount due to ongoing cost-cutting and economic uncertainty.” Despite a year-on-year increase of 14% in financial services vacancies, the market remains 11% below early 2023 levels, indicating ongoing challenges. The rise of AI is also expected to impact recruitment, reducing reliance on traditional entry-level roles.

 

City A.M.