Crypto News: A global bond selloff

Good morning. Inflation fears are sending bond prices tumbling. The US military loses another senior leader, after clashes with Pete Hegseth. And why ex-Congressman George Santos won’t be placing any more bets on Kalshi. Listen to the day’s top stories.

— Marcus Wright and Harry Black

Market Snapshot
S&P 500 Futures	7,657.00	-0.5%
Nasdaq 100 Futures	29,218.50	-1.0%
US 10-year Treasury yield	4.78%	+0.03
Bloomberg Dollar Spot Index	1,198.01	+0.2%
Market data as of 07:01 AM ET. Data is subject to provider delays.	Your watchlist

Bond prices slumped around the world, with inflation fears driving yields on a Bloomberg global gauge to the highest since mid-2008. Traders boosted the odds of a September US rate hike to about 70%, extending a repricing that began last week when Federal Reserve Chairman Kevin Warsh doubled down on a pledge to tame inflation. Japan’s 10-year government bond yield touched 3% for the first time this century.

Army Secretary Dan Driscoll is stepping down after repeated clashes with his boss Pete Hegseth, leaving the service without several top leaders even as the conflict with Iran continues. Oil rose as the recent outbreak of renewed hostilities raised concerns about energy flows through the Strait of Hormuz. Donald Trump dismissed worries that the conflict is draining American firepower, telling reporters: “This is a relatively little war for us.”

Apple Accuses OpenAI of Destroying Evidence in Exchange of Barbs

Anthropic signed a $35 billion computing deal with Lambda, a cloud provider backed by Nvidia, as part of an effort to quickly expand its artificial intelligence capacity, a person familiar said. Meanwhile, Nvidia’s investment in MediaTek has thrust the Taiwanese chip designer into the center of the global AI infrastructure boom. And while electricity-guzzling AI data centers may be unpopular with US voters, in Brazil they’re central to politicians’ pitches to bolster the economy.

Nine drugmakers struck pricing agreements with the Trump administration under which they’ll provide discounts on outpatient drugs to state Medicaid programs that align with overseas prices.

Cuba’s top diplomat in Washington said that US talks were at a standstill as the island faces continued economic isolation and a “war without bombs.” Last month, Washington placed additional sanctions on Cuba as it pursues a strategy of economic pressure rather than military force.

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Deep Dive: The US and Venezuelan Oil

Oil drills in Venezuela. — Oil drills at Maracaibo Lake in Venezuela..

The White House revealed more details of its plan to take control of Venezuela’s oil reserves, which Trump has said will lower US gasoline prices and replenish depleted crude reserves.

The US will have the right to buy 80% of the oil produced by North American Blue Energy Partners, a privately held company granted 100-year concessions on oil fields with more than 65 billion barrels of reserves. The company plans to invest up to $100 billion in new oil infrastructure.
Many questions remain about the deal, however, not least where the massive planned investment is supposed to come from. It’s still far from certain that the deal will lead to lower gas prices during Trump’s presidency, if at all.
The private company at the heart of the deal is headed by Alejandro Betancourt, a controversial energy investor who has become a key middleman between the US and Venezuela.
For more details on why the US is getting involved in Venezuelan oil, here’s our explainer.

The Big Take

A homemaker cooks on a traditional clay stove. — Some in India have tuned to wood and charcoal as a temporary fix during cooking gas shortages.

The Hormuz crisis has reshaped the global trade in cooking gas. From India to the Panama Canal, workarounds have helped the world to avert the most dire predictions made in the early days of war — but they’ve come at a cost.

Big Take Podcast

Social Media’s Safety Reckoning Is Here

Opinion

Kevin Warsh. — Kevin Warsh at the Fed’s Jackson Hole conference.

The Fed Chair seems sincerely committed to price stability and to the central bank’s overriding responsibility to deliver it, Bloomberg’s Editors write. But an essential tension will soon be laid bare: Warsh can impress investors with his anti-inflation zeal, or he can give the White House the monetary policy it demands. He can’t do both.

More Opinions

David Drucker

Trump’s Popularity Has Reached a Critical Point

Liam Denning

The US-Venezuela Oil Deal Looks Like It Is Built on Quicksand

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Before You Go

Ex-Congressman George Santos won’t be able to place another wager on Kalshi after the prediction market platform banned him for life for allegedly manipulating wagers on his attendance at this year’s State of the Union address. It’s the first such ban by Kalshi, which announced the action on Monday along with a fine of $71,356.

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