Top Overnight News The US’s national debt has hit a record $40tn as borrowing rises at a historic pace, fuelling investor concerns about the state of America’s public finances despite Donald Trump’s vow to bring spending under control. FT Scott Bessent’s shock Treasury intervention reverberated through markets, with analysts warning his plan risks being a short-term “circuit breaker” at best. Underscoring jitters, long end US yields edged higher. Bessent is emerging as the most interventionist Treasury chief in decades. BBG The US will begin what Donald Trump called “unprecedented” economic warfare against Iran after failing to reach a deal. He gave no details but also threatened to target Iran’s trading partners. Brent rose above $93. BBG The U.S. military has quietly established a shipping corridor in and out of the Strait of Hormuz to transport millions of barrels of oil each day — a notable success even as the broader war remains at a stalemate. Axios In the battle for global technological mastery being fought in the labs of AI companies, China is rapidly closing the gap with the US. By several key metrics — usage and cost — it’s even taking the lead. BBG North Korea has fired a barrage of ballistic missiles, just hours after dismissing US President Donald Trump’s overture to reopen diplomatic contacts between Pyongyang and Washington. FT The U.S. and Canada are closing in on a trade deal in which Washington could cut some contentious tariff rates on Canadian-built cars and trucks, ‌and key metals, a source familiar with the matter said on Wednesday. RTRS Four Democratic senators have written to Kevin Warsh urging him to disclose any conversations he has had with Trump since becoming Fed chair, according to people familiar. BBG Japan’s exports expanded at the fastest pace since 2022 last month, rising 23.2% from a year earlier as a weaker yen and strong demand for chips and cars boosted shipments. BBG Mutual fund cash balances sit near historical lows. Following a brief increase around the start of the US-Iran war, mutual fund cash balances stood at 1.2% of assets at the end of June. Cash balances reached a low of 1.1% in December 2025. Goldman

Top Overnight News The US’s national debt has hit a record $40tn as borrowing rises at a historic pace, fuelling investor concerns about the state of America’s public finances despite Donald Trump’s vow to bring spending under control. FT Scott Bessent’s shock Treasury intervention reverberated through markets, with analysts warning his plan risks being a short-term “circuit breaker” at best. Underscoring jitters, long end US yields edged higher. Bessent is emerging as the most interventionist Treasury chief in decades. BBG The US will begin what Donald Trump called “unprecedented” economic warfare against Iran after failing to reach a deal. He gave no details but also threatened to target Iran’s trading partners. Brent rose above $93. BBG The U.S. military has quietly established a shipping corridor in and out of the Strait of Hormuz to transport millions of barrels of oil each day — a notable success even as the broader war remains at a stalemate. Axios In the battle for global technological mastery being fought in the labs of AI companies, China is rapidly closing the gap with the US. By several key metrics — usage and cost — it’s even taking the lead. BBG North Korea has fired a barrage of ballistic missiles, just hours after dismissing US President Donald Trump’s overture to reopen diplomatic contacts between Pyongyang and Washington. FT The U.S. and Canada are closing in on a trade deal in which Washington could cut some contentious tariff rates on Canadian-built cars and trucks, ‌and key metals, a source familiar with the matter said on Wednesday. RTRS Four Democratic senators have written to Kevin Warsh urging him to disclose any conversations he has had with Trump since becoming Fed chair, according to people familiar. BBG Japan’s exports expanded at the fastest pace since 2022 last month, rising 23.2% from a year earlier as a weaker yen and strong demand for chips and cars boosted shipments. BBG Mutual fund cash balances sit near historical lows. Following a brief increase around the start of the US-Iran war, mutual fund cash balances stood at 1.2% of assets at the end of June. Cash balances reached a low of 1.1% in December 2025. Goldman

Source:https://x.com/zerohedge/status/2090407996153041322