Suddenly the Strait of Hormuz is "irrelevant" to the US

A look at the day ahead in European and global markets

Morning Bid Europe Morning Bid Europe A look at the day ahead in European and global markets By Wayne Cole, Chief Correspondent, Treasury   Data refreshes every time you open this email. For more European market news, click here. Please send any feedback to morningbid@thomsonreuters.com. Asian stocks are mostly firmer, following Friday's Wall Street rally, though European share futures are off as oil rises amid much confusion over the Strait of Hormuz. Treasury Secretary Scott Bessent over the ‌weekend claimed the strait would become "irrelevant" as oil would eventually be redirected through pipelines, giving analysts the impression the White House was trying to wash its hands of the whole affair.   Today's Market News Morning Bid: Suddenly the Strait of Hormuz is 'irrelevant' to the US Asia stocks gain, oil up amid Gulf confusion UK's jobs market shows signs of stabilisation, REC/KPMG say German trade deficit with China grows as Beijing relies less on European industry UK stock indexes set for fourth week of gains, miners rally Houthi attacks Vessels in the Strait of Hormuz, as seen from Musandam, Oman, August 3, 2026. REUTERS/Stringer Iran said on Sunday that a deal with Oman defining new shipping lanes in the Strait was in its final stages but reiterated that the waterway would only reopen once the United States met other ⁠conditions, which seems unlikely. Meanwhile the Houthis say they have resumed attacks on the Red Sea port city of Mocha, which will be making shippers through the Bab el-Mandeb strait nervous. Brent crude added 1% to $84.38 a barrel as shipping through the SoH remains at a trickle with just two tankers on Friday, while U.S. crude rose 0.7% to $78.75. The soft U.S. payrolls number has markets pricing in a 44% chance of a Federal Reserve hike in September, but that could change depending on what the consumer price data shows on Wednesday. Median forecasts are for an increase of 0.1% in the headline and 0.2% for the core.     Graphics are produced by Reuters AI slowdown  July ‌retail sales ⁠are out on Friday and forecasts favour a modest rise of 0.2%, though there is some downside risk given Amazon moved their Prime Day sale to June from July this year. Wall Street futures were a shade lower after a record closes on Friday, with upbeat earnings reports giving the Nasdaq a 5% gain for the week. Analysts at ⁠BofA noted that with nearly 90% of S&P 500 results in, earnings per share were up 30% on the year after excluding investment gains at Alphabet and Amazon. A 76% EPS beat rate matched the strongest level since 2021.   They ⁠added AI was the standout, with median EPS growth of 28% versus 12% for non-AI-related stocks, though consensus expects AI to slow to 16% next quarter. Earnings are lighter this week but include semiconductor company ⁠Applied Materials (AMAT.O), networking equipment maker Cisco (CSCO.O), and cloud infrastructure technology company CoreWeave (CRWV.O).        Key developments that could influence markets on Monday: EU Sentix investor confidence for August Federal Reserve Bank of Cleveland President Beth Hammack appears    Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.   Sponsors are not involved in the creation of newsletters or other Reuters news content. Advertise in this newsletter or on Reuters' website   Morning Bid is sent every weekday morning. Think your friend or colleague should know about us? Forward this newsletter to them. They can also sign up here. Want to stop receiving this email? Unsubscribe here. To manage which newsletters you're signed up for, click here. This email includes limited tracking for Reuters to understand whether you’ve engaged with its contents. For more information on how we process your personal information and your rights, please see our Privacy Statement. Terms & Conditions   © 2026 Thomson Reuters. All rights reserved. 3 Times Square, New York, NY 10036

Communist losers and Socialists

And a ballroom dance, interrupted

Weekend Briefing Weekend Briefing From Reuters Daily Briefing   By Robert MacMillan, Reuters.com Weekend Editor Hello and thanks for reading the Weekend Briefing. The Senate stayed up late to confirm Todd Blanche as U.S. attorney general in a 50-49 vote and to pass its version of a bill to fund the federal government through the midterm elections, preventing a shutdown for now. Typhoon Dolphin hit Okinawa and is heading toward China. This week’s City Memo dives into Copenhagen. And it turns out that sharks are good for more than frightening your children. ‘Communist losers’ and ‘Socialists’   REUTERS/Rebecca Cook What do we call them? Republicans are taking cues from Donald Trump to portray their progressive Democratic rivals as radically left wing, but some Republican campaign teams in U.S. House races say it’s not for them. A ballroom – from the ground down: A U.S. appeals court ordered the Trump administration to stop construction on the $400 million ballroom that the president wants built where the East Wing of the White House used to stand. And legal experts had a look at Trump’s latest efforts to restrict birthright citizenship. The verdict: It’ll be a fight to preserve them. Europe’s conflict over migration Ceuta: Spain threatened to impose restrictions on travelers from Italy after Rome imposed border controls on non-EU nationals arriving from Spain after migrants flooded into its city of Ceuta on the northern African coast. Bologna: A Moroccan businessman who lived in Italy for 36 years died while being restrained by police officers. Experts say the European debate over immigration reduces people to caricatures, preventing a more constructive response to handling Europe’s migration influx. The water bombers and the wildfires Future fights: Wildfires have burned more than a million acres across Europe this year, increasing the need for airborne firefighting alternatives to the Canadair water-bombers that have dominated the market for decades. Aviation startups are not short on vision, but they need a lot of money for research and development, certification tests and factories. Heat: South Korea’s president called a heatwave sweeping the country a national disaster after 19 people died. North Korea urged its people to eat dog-meat soup to cool down. Three lions died of heatstroke at the Tokyo zoo. Vacationers flocked to the northeastern China seaside only to find it was hotter there than where they came from. Spice up your stomach bug It’s going around: Just as Michigan officials said residents could resume eating lettuce and salad greens as cyclosporiasis case reports fell, U.S. health officials said they were investigating a salmonella outbreak linked to Mexican jalapeño peppers. Acceleration: The latest Ebola outbreak in the Democratic Republic of Congo is spreading five times faster than previous outbreaks at this stage. We tell you why. I recommend listening to our On Assignment podcast in which our reporter shadows a surveillance officer who is trying against the odds to track the impact of the virus. Protein-coffee company seeks a bunch of beans They call it a functional beverage: Javvy, which makes protein coffee powders and coffee concentrates, could be valued around $1 billion if it sells. Supplements brand Dose, which makes daily liquid shots of elderberry, turmeric and ginger is exploring a sale as well. Fast food slow: McDonald’s named a company veteran to run its U.S. business after its quarterly-sales growth missed Wall Street expectations. CEO Chris Kempczinski said McDonald’s doesn’t have a strategy problem, but an execution problem. Infantino allies rally around their man I confess: I thought last week that Gianni Infantino’s collapsed plan to open FIFA to outside investors would toast him. I was wrong. Spottings and droppings: Lithuanian police launched a racism investigation after an assistant at the Powerlifting Championships said he sabotaged a Black athlete’s squat attempt. In India, organizers of the World Badminton Championships said they’d hold a better tournament this year after bird droppings, stray animals on the court and bad air marred last year’s edition. Before I forget… New Mexico sued the U.S. government for access to unredacted files on Jeffrey Epstein. A man in southern Wales was jailed after he kept his mother’s body in a freezer for nearly three years and received more than $100,000 in benefits intended for her. A Mexican influencer was shot to death during a live stream outside a fast-food restaurant in Culiacán. Pakistan broadened restrictions on foreign media to local journalists. The U.S. will vet foreign journalists’ social-media accounts when they apply for visas. Villagers in Malaysia’s Sarawak state are dealing with the deadly consequences of a resurgence in the region’s crocodile population. Improper flavoring, a misleading claim of maturation in oak casks: That whiskey you’re drinking in India might not be what you think it is. There’s a kiss to build a dream on. Then there’s a kiss to jeopardize your career as a lawyer.   Sponsors are not involved in the creation of newsletters or other Reuters news content. Advertise in this newsletter or on Reuters' website   Weekend Briefing is sent once a week. Think your friend or colleague should know about us? Forward this newsletter to them. They can also sign up here. Want to stop receiving this email? Unsubscribe here. To manage which newsletters you're signed up for, click here. This email includes limited tracking for Reuters to understand whether you’ve engaged with its contents. For more information on how we process your personal information and your rights, please see our Privacy Statement. Terms & Conditions   © 2026 Thomson Reuters. All rights reserved. 3 Times Square, New York, NY 10036