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A Federal Reserve survey of more than 500 U.S. chief financial officers found that most companies have largely absorbed the recent oil price spike linked to the U.S.-backed conflict with Iran, with limited impact on customer demand and only modest price increases passed on to consumers. The quarterly survey, conducted by the Federal Reserve Banks of Richmond and Atlanta and Duke University, showed CFOs lowered their U.S. economic growth forecast to 1.8% from 2.1%, although optimism about their own businesses improved and hiring plans remained steady. While two-thirds of respondents reported higher production costs due to rising energy prices, only one-third said they increased prices. More than 70% said demand for their products and services was largely unchanged or had increased, suggesting the broader economic impact of the oil shock has been limited. Companies expect costs and prices to rise by around 4.7% this year, although those forecasts were based on oil prices near $90 per barrel. With oil prices falling following a ceasefire and the reopening of shipping routes through the Strait of Hormuz, Federal Reserve researchers said inflationary pressure from energy could ease if prices remain lower. The survey comes as policymakers continue to monitor persistent inflation, particularly in services, with markets increasingly expecting the Federal Reserve to consider raising interest rates later this year if price pressures remain elevated.

 

Reuters

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JPMorgan Chase has appointed Doug Petno and Troy Rohrbaugh as the bank’s first co-presidents, advancing chief executive Jamie Dimon’s long-term succession planning while announcing the retirement of longtime executive Marianne Lake. Mr. Petno and Mr. Rohrbaugh, who have jointly led the Commercial & Investment Bank since early 2024, assume their new roles immediately. Mr. Petno will also become the sole CEO of the Commercial & Investment Bank, while Mr. Rohrbaugh will succeed Ms. Lake as CEO of the Consumer & Community Banking division. Ms. Lake, a 25-year JPMorgan veteran and one of the leading candidates to eventually succeed Mr. Dimon after serving as chief financial officer and most recently leading the consumer banking business, has decided to retire from the firm.

 

CNBC

Financial Times

Reuters

Wall Street Journal

The Federal Reserve said on Wednesday that the 32 largest U.S. banks remain well capitalized and are capable of withstanding a severe economic downturn while continuing to lend, after its annual stress tests showed the sector could absorb more than $700bn in hypothetical losses and still remain above minimum capital requirements. Under the test scenario, banks faced a global recession featuring 10% unemployment, a one-third decline in real estate prices, and significant financial market turmoil. The banks' aggregate common equity tier one capital ratio fell from 12.8% to 11.2% during the simulated downturn, a decline of 1.6 percentage points, but remained comfortably above regulatory minimums. The hypothetical losses included roughly $200bn from credit cards, $160bn from commercial and industrial loans, and $75bn from commercial real estate, although stronger net interest income helped offset some of the impact.

 

AP News

CNBC

Reuters

U.S. employers are expected to face another year of historically high healthcare cost increases in 2027, with group medical expenses projected to rise 9% for the second consecutive year, according to a new analysis from PwC. The report attributes the sustained increase to several factors, including providers' growing use of artificial intelligence (AI)-powered revenue management tools, rising reimbursement demands from hospitals and health systems, increasing prescription drug spending, higher utilization of behavioral health services, and escalating payment disputes under the No Surprises Act. PwC noted that healthcare providers are increasingly using AI-driven documentation tools that can capture more detailed patient information, potentially resulting in higher reimbursement rates. At the same time, hospitals continue to face elevated labor, drug, and supply costs, prompting many to seek higher payments from insurers. The findings are based on surveys and interviews with actuaries from 27 U.S. health plans covering more than 103m employer-sponsored members.

 

CFO

David Goodgame, the former ​chief operating officer at Tricolor Holdings, has pleaded guilty to ‌fraud and conspiracy charges in connection with the now-bankrupt subprime auto lender's collapse. Goodgame said he would cooperate with prosecutors and could testify against Tricolor founder Daniel Chu in the hope of leniency on sentencing. He said: "I knew that Tricolor was deceiving and defrauding the banks." Prosecutors claim Tricolor executives acting at Chu’s direction repeatedly defrauded banks by “double-pledging” or counting “near-worthless” assets as collateral for its loans. Chu has pleaded not guilty and is scheduled to go on trial.

 

Bloomberg

Reuters

The Supreme Court has ruled 6-3 that Falun Gong practitioners cannot sue Cisco for allegedly aiding the Chinese government's surveillance and torture of the spiritual movement. The decision limits the ability of foreigners to hold U.S. corporations liable in U.S. courts for aiding and abetting alleged human rights violations overseas. “In truth this class is a null set. And because courts cannot create new rights of action to remedy violations of internal law, there is necessarily no liability for aiding and abetting such violations,” Justice Amy Coney Barrett wrote for the majority. The lawsuit, initiated in 2011 by Chinese nationals and a U.S. citizen, accused Cisco of knowingly providing technology that facilitated the persecution of Falun Gong members. Although a federal judge dismissed the case in 2014, the U.S. Court of Appeals for the 9th Circuit revived some claims in 2023, leading to Cisco's appeal to the Supreme Court.

 

The Hill

Law

U.S. News

The Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Kentucky, challenging the state's recent actions to regulate prediction markets. “Kentucky is the latest state attempting to shut down federally-regulated event contracts,” CFTC Chair Michael Selig said, adding: “Prediction markets provide Kentuckians with valuable information about the likelihood of future events and offer risk management products relied on by Kentucky businesses and individuals.” The CFTC brought the case after Kentucky Attorney General Russell Coleman (R) sued prediction market platforms Kalshi and Polymarket last week. “Kalshi and Polymarket are operating illegal sportsbooks in Kentucky and breaking our laws,” said Coleman in a press release announcing the suit against the two firms. “These multi-billion dollar corporations and their legal fictions don't pass the sniff test,” he said.

 

The Hill

CNBC

Adidas is emerging as the early winner in the battle for World Cup-related sales, with data showing spending on its apparel surged 70% year-on-year in May and U.S. store visits jumped 47% during the tournament's opening week. Analysts attributed the performance to strong demand for team jerseys and Adidas' position as an official FIFA World Cup sponsor, supplying kits for 14 national teams and the tournament's match ball. Nike, which sponsors 12 national teams, has also benefited from the competition, but its apparel growth has lagged Adidas' despite strong visibility on the pitch. While 232 of the tournament's 528 starting players have worn Nike boots compared with 218 for Adidas, analysts said the U.S. sportswear group still faces the bigger challenge of rebuilding market share after several years of declining sales and intensifying competition.

 

Reuters

The U.S. current account deficit widened 2.6% to $226.8bn in the first quarter, exceeding economists’ forecasts and reflecting a deterioration in the nation’s primary income balance, according to Commerce Department data. The deficit increased from a revised $221.1bn in the fourth quarter and represented 2.9% of GDP, up from 2.8% in the previous quarter. The primary income balance swung to a $13.3bn deficit from a $3.4bn surplus, as income receipts fell to $396.1bn and payments rose to a record $409.1bn. The worsening income balance more than offset an improvement in the trade deficit, which narrowed to $165.8bn from $177.3bn in the fourth quarter. The report also showed higher capital-transfer receipts and lower payments during the quarter. The United States continued to maintain a negative net international investment position, meaning foreign liabilities exceeded U.S.-owned financial assets abroad.

 

Reuters

U.S. online spending reached $8.3bn on Tuesday, the opening day of Amazon's annual Prime Day event, exceeding Adobe's earlier forecast of $7.9bn, suggesting consumers remain willing to spend despite ongoing concerns over the economic outlook. Adobe now expects shoppers to spend $26.3bn across the four-day event, representing 9% growth compared with last year's Prime Day promotion. The increase has been supported not only by Amazon's discounts but also by overlapping promotional events from major retailers including Walmart and Target, which have helped drive traffic and spending across the wider ecommerce market.

 

Bloomberg

Reuters

For the first time since 2023, a majority of U.S. consumers say they would rather buy a home than rent or live with family, according to Bank of America’s latest Homebuyer Insights Report, signaling improving confidence in homeownership despite ongoing affordability challenges. The survey of 2,000 consumers found that 53% now prefer buying a home, compared with 47% who favor renting or moving in with family. The shift is being driven largely by Gen Z and millennial buyers, who appear increasingly willing to enter the market rather than wait for conditions to improve. While affordability remains the biggest obstacle, fewer prospective buyers are delaying purchases in anticipation of lower rates or home prices. About 71% of respondents said they are waiting for interest rates and home prices to decline before buying, down from 75% a year earlier. The report also found growing confidence among existing homeowners, with 22% planning to purchase another property within the next year, up from 15% in 2025. Bank of America’s head of consumer lending, Matt Vernon, said buyers are becoming more realistic about the likelihood that mortgage rates will remain elevated, with the bank expecting rates to stay in a range of 6.25% to 6.75% this year.

 

US News and World Report

The European Parliament’s Economic and Monetary Affairs Committee has approved plans for a digital euro, marking a significant step towards launching a central bank-backed digital currency designed to reduce Europe’s reliance on U.S. payment networks and strengthen financial sovereignty. The digital euro, which is expected to be introduced by 2029, would be issued and backed by the European Central Bank (ECB) and would complement, rather than replace, cash and existing banking services. Consumers would hold digital euros in dedicated digital wallets, with support for both online and offline payments. Under the proposed framework, the ECB would operate the core infrastructure while commercial banks and payment providers would distribute digital euro services to customers. The system is intended to offer a high degree of privacy, with the ECB unable to directly identify users from payment data. Merchants are expected to face lower fees than those charged under existing card payment systems.

 

Euronews

Reuters

U.N. Secretary-General António Guterres has urged AI companies to disclose their environmental impact, including carbon emissions, water, and land usage. Speaking at London Climate Action Week, he proposed the AI Environmental Transparency Initiative, as he highlighted the need for standardized reporting. Mr Guterres noted that data centers, which support AI, accounted for 1.5% of global electricity consumption in 2025. This is projected to rise to nearly 3% by 2030. “By 2030, [data centers] could use ⁠more power than all but five countries – and enough water to meet the basic needs ​of all 1.3 billion residents of sub‑Saharan Africa for an entire year,” he said. “If AI is to help build a better ​future, it must be honest about what it costs us now.”

 

Reuters