Crypto News: Bessent against the world

Good morning. Scott Bessent’s plan to buy back bonds is under fire and his Iran strategy risks setting a collision course with China. Canada will lay out retaliatory measures against US tariffs. And Bitcoin reaches a three-month high as optimism returns to the crypto market. Listen to the day’s top stories.

— Tiago Ramos Alfaro

Market Snapshot
US 10-year Treasury yield	4.67%	-0.03
Bitcoin	$79,444.40	+0.7%
Nasdaq 100 Futures	29,367.25	+0.9%
Market data as of 06:48 AM ET. Data is subject to provider delays.	Your watchlist

US Treasury Secretary Scott Bessent’s plan to spend billions buying back bonds is a mistake, Stanley Druckenmiller wrote in the Wall Street Journal. Druckenmiller, the billionaire investor who mentored Bessent in his early career as a hedge fund trader, said “governments defending prices against fundamentals always lose.” The secretary, meanwhile, gave no new signals on debt management, following a report that his department could draw down some of its cash pile to fund buybacks. As a reminder, here’s our explainer on what bond market swings mean for your savings and investments.

Bessent’s threat against any country doing business with Iran — as part of a sweeping campaign to isolate the Islamic Republic — risks setting the US on a collision course with China. The latest sanctions salvo against Iran swept up businesses in China and Hong Kong, but avoided the far more consequential step of targeting major Chinese financial institutions. Beijing threatened to retaliate against the US and signaled it won’t back away from Iran.

US-Canada trade talks collapsed after last-minute pressure from Commerce Secretary Howard Lutnick, people familiar with the matter said. Lutnick viewed a framework deal negotiated by US Trade Representative Jamieson Greer as too generous to Canada and pushed for bigger concessions. Today, the Canadian government is expected to announce a range of measures to “protect and support” its workers and businesses in response to 50% tariffs which were applied to about $20 billion of its annual exports on Saturday. Prime Minister Mark Carney had previously promised to retaliate.

Mexico Bonds Trade Like Junk After $130 Billion Bailout of Pemex

On the markets front, Bitcoin climbed above $80,000 for the first time since mid-May, as optimism returns to the crypto market. The original cryptocurrency is benefitting from chatter about the so-called debasement trade, which points to investors seeking refuge from the dollar over concern that it’s being devalued. Watch Tether Co-Founder Bill Quigley explain how Bitcoin is increasingly behaving like a gold hedge against inflation. US stock futures also rose, as pressure on the tech sector eased.

Corporate wrap: SpaceX plans to launch its first orbital AI data-center satellites, powered by Nvidia chips, in late 2027 before ramping up deployment in 2028. Smart ring maker Oura is seeking to raise as much as $3 billion in an initial public offering, people familiar said. The IPO could take place as soon as September and value the company at more than $16 billion. And the Securities and Exchange Commission has sent subpoenas to Wall Street banks regarding the hedge fund Situational Awareness, according to people close to the matter.

Deep Dive: Warsh in Jackson Hole

Kevin Warsh heads to Jackson Hole with something to prove after his first big press conference as chairman of the Federal Reserve rattled the bond market.

Friday’s speech is a key test of Warsh’s push to curb forward guidance while preserving the transparency investors expect from the Fed.
Warsh’s July press conference drew criticism for failing to clearly explain why the Fed held rates steady or whether hikes remain on the table.
Softer jobs, spending and inflation data eased pressure for higher rates, giving Warsh more room to focus on rebuilding confidence in the Fed’s message.
The Jackson Hole Economic Symposium is the Fed’s high-profile annual gathering of central bankers and economists, where the chair’s speech can shape expectations for monetary policy.

The Big Take

Photographer: Illustration 731; Getty Images

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Opinion

You might not know it from looking at the cost of everything from burritos to berries, but the US is on the cusp of a supermarket price war, Andrea Felsted writes. And it’s no coincidence that the brawl is happening now, as German discounters Aldi and Lidl expand in the country.

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Before You Go

Apple is planning an updated version of its Mac mini, which was last updated in 2024.

Apple’s gearing up to launch a new version of its Mac mini desktop computer for the first time in almost two years, people familiar said. The new desktop will debut as soon as the coming days.

A Couple More

Lego CEO Rules Out AI-Designed Toys as Record Growth Rolls On

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