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"F1 The Movie," premiered on June 27 in the US, is a high-budget film ($200 million) backed by Apple and distributed by Warner Bros., starring Brad Pitt as an aging racer seeking redemption. With a projected $140 million global opening weekend, the movie leverages unprecedented access to real Formula One (F1) races and technology for authenticity. Meanwhile, F1's popularity in the US has soared, reaching 30 million viewers on ESPN in 2024, fueled by shows like Netflix’s "Drive to Survive." The US fanbase, now at 50 million and doubling yearly, is a prime target for sponsors, with major US brands like Oracle and Google backing teams. Williams F1, despite a fifth-place standing, seeks more sponsorships while navigating mixed results. However, concerns about market saturation loom as ESPN exits its TV rights deal, and Liberty Media pursues a $150 million per season contract, potentially with streamers like Netflix or Apple. The film and sport's growth highlight F1's rising cultural and commercial impact in the US.
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President Donald Trump has abruptly ended trade talks with Canada, citing the country’s digital services tax as the reason, and threatened new tariffs within a week. This escalation adds to existing tensions between the two nations, which share a $900 billion annual trade relationship. Trump, who has previously imposed tariffs on Canadian steel, aluminum, and other goods, has also suggested Canada should become the 51st US state. The digital tax, targeting tech giants like Meta and Amazon with a 3% levy on revenue from Canadian users, has been criticized for potentially raising costs for consumers and inviting US retaliation. Canadian business leaders and politicians, including Ontario Premier Doug Ford, are pressing Prime Minister Mark Carney to scrap the tax to mend trade relations. Meanwhile, Treasury Secretary Scott Bessent hinted at a Section 301 investigation that could lead to higher import taxes. The Canadian dollar and equity markets reacted negatively to Trump’s announcement, though some losses were later reversed. As negotiations continue, the digital tax remains a contentious issue, with US lawmakers estimating a $2 billion cost to American companies, further straining bilateral ties.
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As Jerome Powell's term as Federal Reserve chair nears its end in May 2026, President Trump is reportedly impatient with Powell's cautious approach to interest rates and is considering an early announcement of a successor to pressure him. Trump has openly criticized Powell, even suggesting he resign due to perceived poor performance. A shortlist of potential replacements includes former Fed governor Kevin Warsh, National Economic Council Director Kevin Hassett, Treasury Secretary Scott Bessent, former World Bank president David Malpass, and current Fed governor Christopher Waller. Each candidate brings distinct experiences and perspectives, with some like Warsh and Waller having deep Fed ties, while others like Bessent and Malpass echo Trump's push for lower rates and growth-oriented policies. Warsh has criticized the Fed's recent actions, Bessent downplays tariff-driven inflation, and Hassett urges immediate rate cuts. Malpass supports lower rates for economic growth, and Waller aligns with the White House on transitory inflation effects. Trump's decision, expected soon per sources close to the administration, could reshape the Fed's direction amid ongoing debates over monetary policy and economic strategy.
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Masayoshi Son, the founder of SoftBank Group Corp., addressed investor concerns about succession during a shareholders’ meeting in Tokyo, revealing plans to lead for another decade while grooming internal candidates for the future, including telecom unit head Junichi Miyakawa, whom he praised for exceptional work in AI infrastructure. Despite past potential successors leaving the company, Son remains committed to steering SoftBank into an AI-driven era, aiming to position it as the world’s leading platform for artificial super-intelligence (ASI). He highlighted key investments in Arm Holdings, OpenAI, and acquisitions like Graphcore Ltd., alongside plans for Ampere Computing LLC and a major AI manufacturing hub with Taiwan Semiconductor in Arizona. SoftBank’s stock rose up to 3.2% following his remarks, reflecting market optimism. Son also addressed shareholder queries about AI extending his influence, humorously dismissing the idea of posthumous control while emphasizing his intent to leverage AI extensively. His vision, shared annually at these meetings, continues to captivate long-term investors who have supported SoftBank through tech booms and busts, underpinned by strong backing from Japanese retail investors.
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The U.S. Treasury Department, under Secretary Scott Bessent, has struck a deal with G-7 allies to shield American companies from certain foreign taxes, in return for scrapping the Section 899 "revenge tax" provision from President Donald Trump’s tax legislation. This measure, designed to retaliate against countries imposing digital services taxes or global minimum taxes on U.S. firms, had raised concerns on Wall Street about hindering foreign investment. Bessent announced the agreement on social media, emphasizing cooperation within the OECD-G20 framework, and urged Congress to remove Section 899, a request promptly supported by key congressional leaders. The deal addresses long-standing U.S. objections to parts of the OECD’s 15% global minimum tax, criticized by Republicans for undermining U.S. tax authority. Market reactions remained subdued, with the S&P 500 nearing record highs before the late Thursday announcement. Analysts suggest the removal of Section 899 could ease investor concerns, though its inclusion in the final law was uncertain. This development is seen as a positive step for non-U.S. investors seeking certainty in the American market, amidst broader global tax negotiations.
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The US dollar has hit a three-year low, as reported by Bloomberg, amid speculation that President Donald Trump’s push for lower interest rates could lead to earlier and more substantial Federal Reserve rate cuts. Bloomberg’s dollar gauge dropped 0.4%, reflecting an 8% decline this year, following news that Trump might replace Fed Chair Jerome Powell by September or October. This development has shifted market focus, with traders now anticipating 66 basis points of rate easing by year-end, up from 51 last week. Trump’s criticism of the Fed’s high borrowing costs and potential replacements like Kevin Warsh or Kevin Hassett have added to the dollar’s woes. The currency weakened against major peers, with gains seen in Taiwan, South Korea, and South Africa. Analysts suggest this news, combined with uncertainties over tariffs and a growing fiscal deficit, is fueling a dovish outlook and selling pressure on the dollar, while some see episodes of strength as opportunities to diversify holdings.
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US stocks, led by the tech sector, mostly rose on Wednesday, with the Nasdaq Composite gaining 0.6% and the S&P 500 up over 0.2%, nearing record highs. Nvidia (NVDA) surged 2.63%, eyeing a record close, while Tesla (TSLA) fell over 5% due to a 41% drop in EU sales. Market sentiment was lifted by Federal Reserve Chair Jerome Powell's hints at potential early interest rate cuts, with investors keenly awaiting further testimony and the PCE inflation report on Friday. Additionally, a US-brokered ceasefire between Iran and Israel, holding without reported conflicts, eased geopolitical tensions, supporting a modest rise in oil prices, with Brent futures above $66 a barrel. Other notable movements included Reddit (RDDT) extending gains with a 40% monthly climb and BlackBerry (BB) jumping 10% on strong cybersecurity demand. However, concerns linger over inflation data and the impact of Trump's tariffs on prices, alongside individual stock challenges like Tesla's sales slump and Novo Nordisk's fallout with Hims & Hers over weight-loss drug strategies.
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Nvidia (NVDA) shares climbed over 2% in early trading, nearing a new record high above $149.43, marking a significant rebound from earlier struggles in 2023. The AI chipmaker's stock surged 12% since its May 28 earnings report, which outperformed Wall Street forecasts despite a China export ban costing billions in lost revenue. Loop Capital raised its price target to $250, projecting a potential $6 trillion market cap, citing Nvidia's dominance in AI chip technology. However, challenges persist with competition from Huawei in China and uncertainty over sustained AI infrastructure demand as Big Tech spending outpaces revenue. Earlier setbacks included stock drops due to Trump's trade policies and a cheap Chinese AI model, with shares hitting a low of $94 in April. Nvidia's recovery was supported by major deals with Saudi Arabia and the UAE, briefly overtaking Microsoft as the world's most valuable company in June. Meanwhile, tech stocks, including Intel and Broadcom, also rallied, with investor inflows into tech reaching a peak not seen since June 2024, as the Nasdaq indices hit record levels.
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FedEx has expressed caution for the upcoming year, forecasting a first-quarter profit of $3.40 to $4 per share, falling short of the expected $4.06 per share, due to volatile global demand and uncertainties in U.S. trade policies, particularly with China. This led to a premarket share drop of over 5%. The company, more exposed to China trade than rival UPS, refrained from issuing full-year forecasts amid Trump's fluctuating tariffs and the termination of duty-free status for direct-to-consumer shipments from China-based retailers like Temu and Shein. Despite these challenges, FedEx reported strong fiscal fourth-quarter results ending May 31, with adjusted profit rising to $1.46 billion ($6.07 per share) from $1.34 billion the previous year, and revenue increasing to $22.2 billion, exceeding analyst expectations. However, both FedEx and UPS are grappling with reduced delivery profits as customers opt for cheaper ground shipping over air services, alongside stalled industrial demand. FedEx also announced plans to spin off its trucking business by June 2026, signaling strategic shifts amid ongoing market pressures.
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President Trump's military strike on Iranian nuclear targets on June 21 showcased his strategic use of powerful "bunker buster" bombs, enabling a swift victory declaration. However, in his ongoing trade war with multiple nations, Trump lacks a comparable decisive tool, often relying on tariff threats that some perceive as bluffs. Despite raising average import taxes from 2.5% to 15%, his adversaries, like China, counter with measures such as limiting rare-earth magnet exports, impacting US industries. Trump's risk-taking was evident in the Iran strike, a move past presidents avoided, capitalizing on a weakened enemy. In contrast, the trade war reveals his vulnerabilities, with markets anticipating deadline extensions, such as the upcoming July 9 cutoff, rather than severe actions. Analysts suggest Trump may delay tariffs further, potentially collecting significant revenue while avoiding market turmoil. His negotiations, particularly with China, remain murky, lacking clear demands, which could undermine his credibility. While Trump excels at exploiting weakness, as seen in Iran, the trade war's complexities and adversaries' strengths limit his leverage, leading to a cycle of bluffs and market adjustments rather than conclusive wins.
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As Middle East tensions persist, everyday investors, especially those nearing retirement, remain anxious despite a market rebound and a ceasefire between Iran and Israel announced by President Trump. Financial experts, consulted by Yahoo Finance, urge calm and a long-term perspective amidst volatility. They caution against market timing, instead advising to maintain cash reserves for stability, regularly review portfolios to align with personal goals and risk tolerance, and adjust allocations based on life stage—shifting to bonds for retirees while younger investors can favor stocks. Experts like JL Collins highlight the market’s resilience with a 13% average annual S&P 500 return despite recent turmoil, while Diane Harris stresses controlling personal responses through cash buffers. Christine Benz suggests diversifying with global stock exposure and using bonds to safeguard against downturns for those closer to retirement. The consensus is to stay the course with a balanced, diversified portfolio tailored to individual circumstances, ensuring resilience against geopolitical and economic uncertainties.
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Oil prices spiked following US military strikes on Iranian nuclear sites at Fordow, Natanz, and Isfahan, with Brent crude jumping as much as 5.7% to $81.40 a barrel before settling near $78 as concerns over immediate supply disruptions waned. The strikes, described by President Trump as having “obliterated” the targets, escalated tensions in the Middle East, where about a third of global crude is produced. Iran warned of severe repercussions, while the US threatened further action if peace efforts failed. Despite the crisis, no disruptions to oil flows, including through the Strait of Hormuz, have occurred, though risks persist, such as Iran potentially blocking the strait or targeting rival oil infrastructure. Analysts warn that oil prices could soar to $120 or $150 if the strait is closed even briefly. Additional threats include attacks on shipping in the Red Sea by Iran-backed Houthi rebels or strikes on Iran’s own oil facilities like Kharg Island. The market remains on edge, with traders and analysts cautioning that Iran’s response, yet to be determined, could further intensify the situation. OPEC+ and its allies, with spare capacity, are also under scrutiny as the crisis unfolds, while market metrics reflect ongoing uncertainty about near-term supply tightness.
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Iran’s parliament has pushed for the closure of the Strait of Hormuz, a vital route for 20% of global oil and gas, following US President Trump’s ordered strikes on Iranian nuclear sites. The decision lies with Iran’s Supreme National Security Council, amid heightened tensions and fears of economic disruption. Vice President JD Vance called such a move "suicidal" for Iran, whose economy depends on the strait for oil exports. Analysts warn of severe global repercussions, with oil prices potentially hitting $120 a barrel and US inflation rising to 5%. However, skepticism remains as Iran has historically avoided closing the strait, using threats to create instability instead. Iranian leaders, including Foreign Minister Abbas Araghchi, have not committed to a specific response, emphasizing a stance of defiance against US actions. While Trump views the strikes as a negotiation tactic, concerns linger about further violence and retaliation. Economists and experts, including those at JPMorgan Chase, highlight the strait’s closure as a "worst-case scenario," though Iran’s own oil sector would suffer significantly. The US administration, including Secretary of State Marco Rubio, remains cautiously optimistic that Iran will refrain from this drastic step, while retaining options to respond if necessary.
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Oil prices are poised to increase by $3-5 per barrel as trading resumes on Sunday evening after U.S. strikes on Iran's nuclear sites, alongside Israeli assaults, escalated Middle East tensions. Analysts predict a geopolitical risk premium will be factored into markets, with Brent crude and U.S. West Texas Intermediate potentially jumping from their Friday closings of $77.01 and $73.84 per barrel, respectively. Iran, OPEC's third-largest oil producer, has vowed to defend itself, raising concerns about retaliation and possible supply disruptions. A senior Iranian official mentioned the potential closure of the Strait of Hormuz, through which a fifth of global oil passes, though this is seen as unlikely due to diplomatic and economic pressures, including China's reliance on Gulf crude. While Brent and WTI have risen 11% and 10% since the conflict intensified on June 13, stable supply and OPEC's spare capacity have tempered gains. The future trajectory of oil prices will depend on whether supply disruptions occur, which could drive prices higher, or if de-escalation reduces the risk premium.
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Last week, stocks trended lower as investors grappled with the escalating Israel-Iran conflict and the potential economic impact of President Trump’s tariffs. The US military’s recent strikes on Iranian sites, announced by Trump, signal further involvement that could shape market dynamics in the coming days, overshadowing upcoming economic data and earnings. Market performance showed mixed results, with the S&P 500 down 0.15%, Nasdaq up 0.2%, and Dow nearly flat. Key economic releases, including the Fed’s inflation gauge (PCE) and GDP revisions, alongside Jerome Powell’s testimony, are expected, as are earnings from major firms like Carnival and Nike. Oil prices, currently at $75 per barrel, remain a concern, with potential spikes posing risks to growth. Meanwhile, the Federal Reserve’s unchanged rate policy and forecasts hint at stagflation risks, with ongoing debates over inflation and labor market trends influencing future decisions.
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Boomerang hiring, the trend of returning to former employers, is gaining momentum, with 35% of new hires in March being returning employees, up from 31% the prior year, according to ADP. This rise reflects employer caution in an uncertain labor market, favoring the efficiency of rehiring familiar workers. The trend extends to the federal sector, where hundreds of laid-off employees, such as at the US Department of Health and Human Services, are being rehired. Across industries like media and technology, boomerang hiring is spurred by factors like a cooling housing market and remote work, reducing workers’ willingness to relocate. Career strategist Nancy Ancowitz advises maintaining positive ties with past employers, leveraging alumni networks, and highlighting new skills when considering a return. However, she cautions against returning to toxic environments, emphasizing the importance of good management for a successful comeback. ADP’s chief economist, Nela Richardson, notes a shift in exit conversations, with employers now encouraging workers to keep in touch, signaling a “see you later” rather than a permanent goodbye. This evolving dynamic suggests that returning to a former workplace can sometimes offer a fresh, improved experience.
