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Higher oil prices put fresh pressure on bond markets sending yields across the globe higher. 30-year UK gilt yields hit 5.80% their highest level since 1998 and their equivalent US government bond yields also reached their highest level since 2008. Japan’s 10-year yield hit 3% for the first time in thirty years, doubling the rate it was at when Sanae Takaichi became Prime Minister.

Yields did pull back later in the week as the rise in oil prices slowed. All the turmoil in bond markets doesn’t show much sign of slowing down…

Oil climbed above $90 a barrel over the bank holiday weekend, after the US targeted rocket launchers on Larek Island to stop the Iranians from deploying mines in the Strait of Hormuz. Economic sanctions had been the preferred approach of the US over the last month but there’s been little success at getting Iran back to the negotiating table. Iranian leaders appear prepared to drag talks out until at least after the US midterm elections in November.

Prior to the latest strikes, traffic through Hormuz had increased 30% week-on-week. Expect it to fall back again this week if tensions can’t be de-escalated…

US Treasuries have been back in the news this week following the US’s intervention to prop up the yen in Japan. With Japan holding more US Federal debt than any other nation, the American’s can ill afford a situation where the yen drops so low they must sell off their US bonds.

While the US dollar remains the anchor of the global financial system, with dollar‑denominated assets forming the core of official foreign exchange reserves, recent data indicates a measurable shift in reserve composition (hence why Japan overtook China as the largest holder of US Treasuries in 2019) and, more importantly, in how incremental reserves are allocated…

Since I joined Copia back in April, I have been working with the team to review our proposition which in turn should help you better support your clients.
I am delighted that we will be heading into September with four new additions to strengthen our Sales and Investment teams. This is a big step forward on our path to get the right expertise to meet our ambitious plans for the future…

The share price of America’s largest retailer, Walmart, fell 9% following the release of their Q2 earnings report on Wednesday. Sales grew by just 2.6%, below expectations and the slowest increase since 2020. Walmart blamed the rising price of oil as lower income US households continue to be hit hardest by inflation and the domestic repercussions from the war in Iran.

The 60-day ceasefire between the US and Iran has now expired and negotiations showed few signs of progress last week. Trump threatened to bomb Oman on Monday if it “gets in the way” by agreeing a deal with Iran over the Strait of Hormuz.

July saw a real shift in investors’ focus across equity markets and regions. The month was marked by a sharp sell-off in technology and AI-related stocks. The sell off begun in Asian where semiconductor stocks tumbled over rising concerns about competition and the potential impact soaring RAM prices might have on the appetite for AI. Chinese firm, Moonshot AI, unveiled new models that narrow the performance gap with US systems at significantly lower costs. According to OpenRouter, Chinese models made up 46% of all token usage by US companies at the start of July, raising further question marks over the long-term prospects for American LLMs and the investments being made by big tech…