Top Overnight News

The United States on Thursday said that it could maintain a naval blockade of Iran indefinitely and would ratchet up economic pressure on Tehran as ceasefire talks have floundered, global oil supply is dropping and regional tensions are rising. RTRS

China’s auto factories are building so many cars for export that the global shipping industry can’t keep up. Specialized car carriers, essentially floating parking garages, are booked out years ahead to export cars from Chinese factories. Rates to charter ships are up 65% this year on the surging demand to move vehicles out of China. WSJ

Tariffs latest: The US is imposing a 100% duty on some imported drones and their components, a move that may significantly affect China. Australia said the US agreed to “consider full exemption or, at the very least, no increase” to the tariffs. BBG

The BoJ is set to raise interest rates as soon as ‌September and is considering hiking more aggressively thereafter from the current pace of roughly twice a year, said three sources familiar with its thinking. RTRS

Japan’s efforts to prop up the yen are creating fresh opportunities as investors return to carry trades — borrowing the low-yielding currency to buy higher-returning assets. BBG

The US is pressing NATO allies to demonstrate support for Donald Trump’s policies, as it reviews potential troop cuts in Europe. BBG

Ukraine has sent Russia an offer suggesting they both halt attacks ‌on civilian targets in the Black Sea, a source said, after mounting strikes on vessels and ports there raised fears over global food supplies. RTRS

Leading US AI labs such as OpenAI and Anthropic are releasing cheaper models as they fight to retain cost-conscious customers who are switching to cut-price alternatives from Chinese rivals. The price war comes as rising AI bills push companies to curb usage and seek cheaper models, helping Chinese developers including Moonshot and DeepSeek make inroads with users from Silicon Valley to Europe. FT

OpenAI is on track to generate annualized revenue of more than $40 billion based on its current performance, people familiar said. The ChatGPT maker’s revenue has accelerated in recent months. BBG

Fitch affirmed the US at AA+, outlook stable, while it stated that the US rating is supported by a large economy, high per capita income, dynamic business environment and exceptional financing flexibility. However, it also commented that labour demand has weakened and job creation has dropped significantly in 2026, while it expects inflation to move towards the target by year-end 2028.

US White House deputy national security adviser Andy Baker will leave the administration in coming weeks: Axios

Top Overnight News

The United States on Thursday said that it could maintain a naval blockade of Iran indefinitely and would ratchet up economic pressure on Tehran as ceasefire talks have floundered, global oil supply is dropping and regional tensions are rising. RTRS

China’s auto factories are building so many cars for export that the global shipping industry can’t keep up. Specialized car carriers, essentially floating parking garages, are booked out years ahead to export cars from Chinese factories. Rates to charter ships are up 65% this year on the surging demand to move vehicles out of China. WSJ

Tariffs latest: The US is imposing a 100% duty on some imported drones and their components, a move that may significantly affect China. Australia said the US agreed to “consider full exemption or, at the very least, no increase” to the tariffs. BBG

The BoJ is set to raise interest rates as soon as ‌September and is considering hiking more aggressively thereafter from the current pace of roughly twice a year, said three sources familiar with its thinking. RTRS

Japan’s efforts to prop up the yen are creating fresh opportunities as investors return to carry trades — borrowing the low-yielding currency to buy higher-returning assets. BBG

The US is pressing NATO allies to demonstrate support for Donald Trump’s policies, as it reviews potential troop cuts in Europe. BBG

Ukraine has sent Russia an offer suggesting they both halt attacks ‌on civilian targets in the Black Sea, a source said, after mounting strikes on vessels and ports there raised fears over global food supplies. RTRS

Leading US AI labs such as OpenAI and Anthropic are releasing cheaper models as they fight to retain cost-conscious customers who are switching to cut-price alternatives from Chinese rivals. The price war comes as rising AI bills push companies to curb usage and seek cheaper models, helping Chinese developers including Moonshot and DeepSeek make inroads with users from Silicon Valley to Europe. FT

OpenAI is on track to generate annualized revenue of more than $40 billion based on its current performance, people familiar said. The ChatGPT maker’s revenue has accelerated in recent months. BBG

Fitch affirmed the US at AA+, outlook stable, while it stated that the US rating is supported by a large economy, high per capita income, dynamic business environment and exceptional financing flexibility. However, it also commented that labour demand has weakened and job creation has dropped significantly in 2026, while it expects inflation to move towards the target by year-end 2028.

US White House deputy national security adviser Andy Baker will leave the administration in coming weeks: Axios

Source:https://twitter.com/zerohedge/status/2088227880648020159