Weekly Espresso

On Tuesday, Japan and the US announced a trade agreement that Trump heralded as the “largest trade deal in history”

In return, Japan will invest $550bn into the US, and according to Trump, the US “will receive 90% of the profits.” The investment is expected to be made via equity and loan support to Japanese business investments in pharmaceuticals, critical minerals and semiconductors…

As Donald Trump’s friendship with Jeffrey Epstein came back to haunt him and drive a rift between him, prominent MAGA loyalists and his base, the S&P and NASDAQ reached record highs.

Major banks, including JP Morgan, Morgan Stanley, Citigroup, PNC and Bank of America reported better than expected earnings for Q2. The common consensus from the US banks seems to be that corporate clients have moved on from Trump’s tariffs and, according to Morgan Stanley CEO, Ted Pick, “boardrooms appear more accepting of ongoing uncertainty broadly.” Despite US consumer debt currently standing at $17.57tn…

On Thursday, the FTSE-100 hit a record high and had the 9,000-point mark in its sights as traders became optimistic that Trump would reach agreements with trade partners or roll back some of his threatened tariffs.

However, this optimism was steadily crushed over the next few days.

The S&P closed at a record high of 6,173 on Friday, taking its jump since the fall on “Liberation Day” to around 24%. The Nasdaq also set an all-time high.

The good week was influenced by the easing of tensions with Iran, a trade deal with China, and comments from Treasury Secretary Scott Bessant that suggested the administration could push back its 9 July tariff deadline, saying in an interview on Fox that the US “could have trade wrapped up by Labor Day [1 September 2025].”

The S&P closed at a record high of 6,173 on Friday, taking its jump since the fall on “Liberation Day” to around 24%. The Nasdaq also set an all-time high.

The good week was influenced by the easing of tensions with Iran, a trade deal with China, and comments from Treasury Secretary Scott Bessant that suggested the administration could push back its 9 July tariff deadline, saying in an interview on Fox that the US “could have trade wrapped up by Labor Day [1 September 2025].”

Markets moved in tandem to the situation in the Middle East throughout the week, with some additional relief coming Friday morning following Trump’s claim he needed two weeks to decide whether to involve the US military in Iran. However, this sentiment was scuppered less than two days later after the Americans attacked three Iranian nuclear sites.

Trump said the operation was a “spectacular success” and warned that if Iran did not abandon its nuclear programme, he would launch more attacks that were “far worse and a lot easier.”