Crypto News: Vanishing red lines

Good morning. Donald Trump’s red lines on Iran all but disappear. A pint of the black stuff is bucking the global beer trend. And the Hamptons is proving a bit of a bargain if you’re looking for some championship play this summer. Listen to the day’s top stories.

— Angela Cullen

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What red lines? President Donald Trump largely brushed aside the boundaries he and his team had used to justify the US war against Iran when signing a memorandum of understanding with Tehran. That’s now in effect, although it wasn’t clear if Iran had immediately begun taking steps to fully reopen the Strait of Hormuz. But there are signs of movement, with three fully laden Saudi oil supertankers emerging in the Gulf of Oman after last signaling from within the Persian Gulf two months ago. An LNG tanker that loaded in Qatar is also on the move. Here’s a glimpse inside the chaotic talks that led Trump to claim victory.

Treasuries rebounded from yesterday’s selloff on Kevin Warsh’s message that the Fed won’t tolerate high inflation. Warsh began his tenure as Fed chairman with a solemn vow to curb inflation and a clear sign that he plans to swiftly revamp how the US central bank does its job. What was missing was any clear guidance on what it means for interest rates. Goldman’s Rob Kaplan warned officials may need to raise rates as soon as September.

Florida Pizza Mogul Played Quiet Role in Trump Sons’ Stock Deals

AI moves. Microsoft has built a big business selling AI models to Chinese companies including ByteDance and Ant Group despite the growing rivalry between the US and China. Meanwhile, one of Google’s most prominent researchers is leaving for rival OpenAI, dealing a setback to Alphabet. Nabbing Noam Shazeer, who co-authored a seminal paper that helped catalyze the AI boom, marks a big win for OpenAI, which is vying with Anthropic to develop ever-more sophisticated models ahead of an IPO.

Abelardo de la Espriella has become the surprise favorite to be Colombia’s next president after a first-round vote in which he unexpectedly beat a leftist protégé of President Gustavo Petro. In a campaign marked by showmanship and provocations, voters rallied behind his plans to fight corruption and build mega-prisons for drug traffickers, which also helped win him an endorsement from Trump. He describes himself as a “tiger who defends the law with his claws and teeth.”

Deep Dive: Bucking the Trend

Beer sales the world over are fizzing out, except for Guinness, that is. Demand for the 269-year-old Irish stout has become so strong that owner Diageo has opened a new brewery in its country of birth, and another is on the way.

You could say the black stuff is having a moment, some of which can be attributed to its ability to tap into cultural trends and social media, like the viral “Split the G” drinking game.
But it’s also making waves in the nonalcoholic beer market cleaved open by Athletic Brewing Co. As good as NAs have gotten, most of us can still tell the difference in a blind taste test. Except, maybe, Guinness 0.
These are sobering times for alcohol companies, which for years counted on steady demand as drinking remained woven into social life and consumer culture. But health concerns and tighter wallets are prompting people to drink less.
Not so Guinness, which continues to grow. So much so that it’s even triggered periodic shortages, forcing some pubs to ration supplies.

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Before You Go

After a summer featuring a wallet-draining Knicks run to the NBA Finals and a World Cup title match in the Meadowlands, New York fans looking to see championship play are finding a relative bargain in the unlikeliest of places: The Hamptons.

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Bloomberg Power Players: Set against the backdrop of the US Open Tennis Championships, Bloomberg Power Players returns to New York on Sept. 10, bringing together the leaders shaping this global industry. This event will gather the most influential voices for market-moving conversations on the multitrillion-dollar sports economy. Learn more here.