The Overnight News Roundup - July 15
Your Daily Edge: Overnight Headlines for Traders, Analysts, and Market Observers
PiQ and Zack Eiseman provide you with a consolidated roundup of the overnight news that matters most to markets.
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TRADE:
Nvidia said it has received assurances from the Trump administration that it can sell its H20 artificial-intelligence chip in China, days after Chief Executive Jensen Huang met President Trump. (WSJ)
Chinese clients were busy calling Nvidia on Tuesday to understand how to apply for the licence, according to FT sources. Despite Washington’s assurances, there was still significant concern about uncertainties, including how long it would take for H20 orders to be delivered. (FT)
The US Commerce Department launched investigations into imports of drones, parts for unmanned aerial vehicles and for polysilicon, a key material for solar power, setting the stage for possible tariffs on those goods. (BBG)
Chinese airlines took delivery of three Boeing Co. aircraft on Sunday, a rare same-day triple handover that points to easing trade tensions between Beijing and Washington. (BBG)
The EU has finalized a second list of countermeasures to target US goods worth €72 billion ($84 billion), including Boeing Co. aircraft, automobiles and bourbon if it decides to retaliate against Donald Trump’s tariff policy. (BBG)
Japanese PM Ishiba is arranging to meet U.S. Treasury Secretary Bessent in Tokyo on Friday. (Yomiuri)
The Trump administration announced on Monday a duty of about 17% on fresh tomatoes from Mexico, which account for two-thirds of the tomatoes eaten in the U.S., and the end of an export deal between the two countries. (RTRS)
MACRO:
Fed Chair Powell has asked the Fed board's inspector general to take a fresh look at the project aimed at overhauling Fed buildings. (Politico)
Interest expense on U.S. Treasuries is projected to rise by about $100 billion this year, with roughly two-thirds of that driven by increased debt outstanding, says Deutsche Bank’s Steven Zeng in a note. (WSJ)
Traders in the $1.4 trillion junk bond market have had a record year: they’ve never traded this much per day, according an analysis by JPMorgan Chase & Co. (BBG)
Japan's 30-year government bond fell on Tuesday, with the yield hitting a record high, on concerns about the nation's fiscal health ahead of the upper house election at the end of this week. (RTRS)
Japan's ruling coalition will likely lose its majority in the upper house election on July 20, media polls showed on Tuesday, heightening the risk of political instability at a time the country struggles to strike a trade deal with the U.S. (RTRS)
Japanese inflation is strong enough for the BoJ to consider an interest rate hike as soon as this fall if tariff uncertainties fade, according to a former BOJ chief economist, Hideo Hayakawa. (BBG)
Mizuho Financial Group Inc.’s CEO said turbulence in the Japanese government bond market is unlikely to spread to 10-year issuance, even as yields on those notes reached the highest level since 2008. (BBG)
China’s economy slowed less than expected in the second quarter, though analysts warn that weak demand at home and rising global trade risks will ramp up pressure on Beijing to roll out more stimulus. (RTRS)
China's new home prices fell at the fastest monthly pace in eight months in June. (RTRS)
China refined the most crude oil in nearly two years in June, as plants returned from seasonal maintenance to seize on better margins for fuels like diesel. (BBG)
China made further headway in June in its bid to tackle oversupply of key industrial commodities, with crude steel production leading declines in building materials with its biggest drop in 10 months. (BBG)
Chinese corporates and households boosted their foreign-currency deposits last month to the highest in three years, as they shunned the yuan on bets domestic interest rates will remain low. (BBG)
Chinese President Xi Jinping called for the acceleration of a “new model” for property development, advocating a more measured approach to urban planning and upgrades, while falling short of investor expectations for more aggressive policies. (BBG)
China has mandated investment banks to work on a 6 billion offshore yuan ($836.55 million) bond sale, according an official statement and a term sheet reviewed by Reuters. (RTRS)
Natural disasters across China in the first half of 2025 have resulted in direct economic losses totalling 54.11 billion yuan ($7.55 billion), an official from the emergency response ministry said on Tuesday. (RTRS)
Chinese quantitative hedge funds are stepping up efforts to hire science and engineering students in the US affected by President Donald Trump’s university funding cuts and tighter visa policies. (BBG)
French Prime Minister Francois Bayrou will outline a plan on Tuesday to sharply narrow France’s deficit, setting the stage for a parliamentary battle that risks triggering another government collapse. (BBG)
The UK economy is showing more signs of rebounding from its recent slump, with a jump in June retail sales adding to evidence of a strong pick-up in activity seen in other leading indicators, according to BRC data. (BBG)
BoE delays part of post-financial crisis banking reforms. (FT)
Lloyds Banking Group CEO Charlie Nunn has an OpEd in the FT titled "The strong grounds for optimism for the UK economy", which cites the government's long term vision for financial services in addition to the upward turn in consumer sentiment gauges. (FT)
Australia’s consumer confidence edged higher in July as households’ assessment of their financial position improved even after the Reserve Bank shocked markets by keeping interest rates unchanged. (BBG)
Australia’s central bank wants merchants to remove surcharging on credit and debit card payments, in a move that could save consumers about A$1.2 billion ($785 million) a year. (BBG)
New Zealand’s aging population is likely to put downward pressure on the neutral level of the Official Cash Rate over time, according to Reserve Bank research. (BBG)
GMO continues to have confidence in its once-in-a-generation recommendation on emerging market local debt, saying the trade and economic policies of Trump’s administration make the bet even more attractive. (BBG)
Singapore’s new private home sales declined to the lowest level in six months in June, just before authorities introduced new measures to tame prices. (BBG)
Malaysia remains on track to reach its trade growth target for the year even as it expects the pace of expansion to moderate in the second half, according to Investment, Trade and Industry Minister Zafrul Aziz. (BBG)
Indonesia, the world’s biggest coal exporter, may impose an export levy on the fossil fuel in a bid to boost state revenues, according to local media reports that cited a government minister. (BBG)
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GEOPOLITCAL:
EU weighs sanctions on Israel as concerns mount over Gaza aid deal. (FT)
China is ready to work with Australia to deepen bilateral ties, President Xi Jinping said during a meeting with Australian Prime Minister Anthony Albanese on Tuesday in Beijing. (RTRS)
Russia's Foreign Minister Sergei Lavrov met with Chinese President Xi Jinping, the spokeswoman of the Russian foreign ministry said on Tuesday. (RTRS)
Paraguay is preparing to receive Taiwan's President Lai Ching-te next month, President Santiago Pena said on Monday, meaning Lai will also most likely make sensitive transit stops in the United States bound to infuriate Beijing. (RTRS)
EQUITIES:
Nvidia GB300-based AI servers will begin shipping in the 4th quarter this year at the earliest, media report, citing server makers and investment bankers. Demand for high priced AI servers remains white hot, with orders for GB200 servers continuing in the 3rd quarter (current quarter). (CTEE)
Demand for Nvidia’s GB10 chips, aimed at putting affordable supercomputers in schools, offices and small research centers (Project Digits), appears to be several times higher than originally expected, media report, citing unnamed industry sources. (DigiTimes)
ConocoPhillips is pushing to explore for more oil near its roughly $7.5 billion Willow project in Alaska, betting there are vast reserves of undiscovered crude in the state’s Arctic north. (BBG)
Lockheed Martin Corp. has delivered all F-35 jets parked at its Forth Worth, Texas plant to the US government as of May 1 after several months of delay due to late software improvements, according to the Pentagon’s program office. (BBG)
Global sales of electric and plug-in hybrid vehicles jumped 24% in June from a year ago, as a switch to electric vehicles maintained momentum in China and Europe, market research firm Rho Motion said on Tuesday. (RTRS)
AI server orders have not been affected by US tariffs, said Wistron CEO Jeff Lin, adding demand remains so strong that AI servers continue to be in short supply. (UDN via)
Ericsson’s second-quarter earnings beat expectations despite a negative impact from U.S. import tariffs, as it benefited from a larger share of sales in higher-margin countries, increased licensing revenue and cost savings. (WSJ)
BMW Group announced that it would join hands with Chinese autonomous driving firm Momenta to develop advanced driving assistance technology specifically for the China market. (RTRS)
China Vanke, a state-backed property developer under liquidity stress, forecast a wider net loss of up to 12 billion yuan ($1.67 billion) for the first six months, hurt by a sharp drop in project settlements, low profit margins and extra provisions. (RTRS)
Shares in China’s lithium producers fell sharply on Tuesday after two of the largest miners warned that battery-metal woes had weighed on earnings for the first half of the year. (BBG)
Japanese telecom giant NTT’s data-center arm is speeding up investments, aiming to pour billions into its business to meet rising demand for AI computing and other use, its chief executive said. (WSJ)
Nissan Motor Co. will wind down production at its local Oppama plant and transfer assembly of vehicles to a factory in Kyushu, as the struggling Japanese carmaker seeks to reduce costs and capacity as part of a broader restructuring effort. (BBG)
LG Group is rolling out a new version of its flagship artificial intelligence model, billing it as South Korea’s first hybrid-reasoning AI system. (BBG)
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That's all for today's digest. Happy trading, and keep it tight!
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