US weapons makers face European demand for greater domestic control of defence equipment at the Farnborough Airshow. European governments are calling for more local production and a larger share of industrial benefits. In response, US companies are expanding manufacturing in Europe, forming joint ventures and offering products that meet specific national needs. Lockheed Martin announced a lower‑cost Patriot interceptor developed with European partners and said it will produce an Army Tactical Missile System with Germany’s Rheinmetall. Raytheon partnered with European firms to increase Stinger missile production, including assembly in the Netherlands. Anduril expanded its UK workforce and will produce its Barracuda‑500M cruise missile in Poland. BAE Systems revealed a new unmanned fighter jet that the British government is adopting as a sovereign demonstrator. European officials say they want access to enough technology to build, modify and maintain equipment themselves. Analysts note that while systems such as the F‑35 fighter jet and Patriot missile remain difficult to replace, other areas have European alternatives that may be sufficient and cheaper. The shift raises concerns about the long‑term impact on US arms sales and the stability of transatlantic defence supply chains.
Macro signals, central banks, earnings, and the deals moving capital today.
Brent crude oil prices stayed above $100 per barrel on Friday, extending a fourth straight week of gains as worries about Red Sea shipping disruptions and possible escalation in the U.S.-Iran conflict persisted. WTI futures were little changed at $91.20 a barrel, their highest level since June 11, and were on track for an 11.8% weekly increase. Brent futures rose 37 cents, or 0.37%, to $101.06 a barrel at 0330 GMT, after Houthis said they had struck two Saudi oil tankers in the Red Sea. The gains brought Brent to a 14.6% advance for the week, its biggest rise since May. Analysts at ING noted that supply disruptions in the market were larger than at any point during the war, with oil flows through the Strait of Hormuz essentially halted and risks to Saudi shipments via the Red Sea growing. Ship-tracking data showed only one tanker transiting the Strait of Hormuz on Thursday, the lowest count since early May, while the Bab el-Mandeb route, the second‑most important oil corridor, remained a focal point of tension. U.S. President Donald Trump pledged to hold Iran accountable for further attacks, and Iran‑aligned Houthi rebels announced a naval blockade of Saudi Arabia, prompting some oil producers to reroute shipments through pipelines. Kazakhstan’s energy ministry said oil output was being reduced temporarily after suspected Ukrainian drone attacks forced the closure of its main Black Sea export terminal, cutting shipments through the Caspian Pipeline Consortium, which handles about 2% of global daily crude supply. One source reported that the country’s largest field had cut production by more than half. Reporting by Colleen Howe in Beijing and Siyi Liu in Singapore; editing by Kevin Buckland and Thomas Derpinghaus.
Senator Elizabeth Warren, the senior Democrat on the Senate Banking Committee, sent a letter to Barclays Chair Nigel Higgins requesting information about the bank’s examination of former chief executive Jes Staley’s ties to Jeffrey Epstein. Warren said it was unclear how Barclays, which indicated it was investigating Staley’s connection to Epstein, failed to identify the long‑term relationship. The letter, obtained by the Guardian, asked Barclays for a detailed response. Barclays has not issued a public statement regarding the inquiry. The Senate Banking Committee began reviewing Staley’s conduct after his resignation in 2016.
Saudi Arabian oil tankers are diverting around Africa after Iran‑linked Houthi attacks and Iran's closure of the Hormuz and Bab el‑Mandeb straits.
The kingdom previously used the Suez Canal for limited exports, but has not relied on it as its primary outlet for decades. With most buyers in Asia, the detour adds roughly a month to each voyage.
Travel from the Red Sea port of Yanbu to Taiwan via Bab el‑Mandeb takes about 19 days, while a Suez route via the Mediterranean and around the Cape of Good Hope takes about 48 days, according to shipping data from Kpler and LSEG. The longer journey doubles fuel expenses, raising costs from $1.26 million to about $2.87 million per tanker. Suez Canal transit fees add approximately $1 million, LSEG said. Saudi Arabia reduced Gulf exports in February after a U.S.–Iran confrontation, and Houthi attacks in the Red Sea this week have made the alternative route unsafe, prompting a shift to Suez. Large tankers may travel partially empty through Suez and refuel in the Mediterranean, according to Energy Aspects. The Sumed pipeline, a 320‑km link that bypasses the canal, can move up to 2.5 million barrels per day, representing part of Saudi Arabia’s 7 million barrel daily export capacity.
The rerouting illustrates how regional disruptions can increase shipping costs and alter trade patterns, and the sustainability of the Suez alternative remains unclear.
The United States imposed new tariffs on 60 trading partners, covering about 99.4% of US imports, effective Friday.
The United States imposed new tariffs on 60 trading partners, covering about 99.4% of US imports, effective Friday. Duties range from 10% to 12.5% and target partners that have not adopted prohibitions on imports produced with forced labour. The measure follows the expiration of a temporary 10% tax on foreign goods and marks the latest escalation in a trade dispute that began when President Donald Trump returned to office. The US Supreme Court earlier ruled that previous tariffs imposed under emergency powers were unlawful. Trade Representative Jamieson Greer announced the duties, citing Section 301 of the Trade Act of 1974. He said the action seeks to correct human rights abuses and trade distortions and improve worker welfare. The administration also invoked Section 338 of the Tariff Act of 1930 to impose 50% tariffs on Canadian products earlier. Greer said countries that have adopted and enforce forced labour import bans will face a 10% tariff, while those that have not will face 12.5%. Ten partners have agreed to such bans. Experts offered mixed views: Deborah Elms of the Hinrich Foundation said the administration remains determined to pursue its tariff strategy, while Wendy Cutler of the Asia Society Policy Institute noted the levies may raise costs for businesses and consumers but could be softened by exemptions. Brazil described the move as unjustified and arbitrary, saying it will use its reciprocity law and consider other partners. Japan expressed regret, stating its trade complies with international rules. Australia’s trade minister called the levies unjustified and urged their removal. China denied allegations of forced labour, calling them political manipulation, while some human rights groups say forced labour exists in China, particularly in Xinjiang. The Supreme Court’s earlier decision led to billions of dollars in refunds, and the White House is exploring alternative mechanisms, including a temporary 10% levy, and investigating additional countries for manufacturing overcapacity.
The Trump administration imposed new tariffs on imports from 60 countries, effective at 12:01 a.m. Friday, to penalize products made with forced labor. The tariffs, based on a months‑long investigation by the Office of the U.S. Trade Representative under Section 301 of the Trade Act of 1974, replace a temporary 10 percent import tax that expired Friday. The policy follows a Supreme Court decision in February that invalidated earlier “Liberation Day” tariffs. Nations without laws prohibiting forced‑labor goods, including China, the United Kingdom and Japan, will face a 12.5 percent levy, while countries with such laws, such as the European Union, will be subject to a 10 percent levy if enforcement is deemed insufficient. Exemptions apply to products covered by the U.S.-Mexico-Canada Agreement and to oil and gas. Administration officials said the measure reflects a long‑standing opposition to involuntary labor and was required by law. Trade analysts noted the action mirrors the tariff framework struck down by the court earlier this year. Patrick Childress of Holland & Knight said the forced‑labor tariffs are only the beginning of broader trade actions. The president has also threatened 50 percent tariffs on Canadian goods and a 100 percent tariff on imported generic drugs, effective in two years. A second set of tariffs targeting nations that subsidize excess manufacturing capacity is expected later this month. Timothy Brightbill, a trade lawyer at Wiley Rein, said forced labor remains a human‑rights concern in global supply chains. The new measures are likely to affect trade flows and corporate planning as the administration continues to use tariff authority to pursue domestic manufacturing goals.
Prime Minister Mark Carney said Canada will consider all options as negotiations with the United States intensify ahead of the August 19 tariff deadline. He made the remarks after meeting provincial and territorial leaders on Thursday to discuss a coordinated response to the Trump administration's announcement of 50% tariffs on about C$20 billion of Canadian goods.
Carney said the trade talks are entering a more intensive phase, with the deadline serving both as pressure from the United States and an opportunity to advance discussions.
Provincial leaders have urged faster action and a firmer stance from Ottawa. Carney indicated that the government could diversify trade relationships and provide assistance to sectors most vulnerable to the tariffs, including wine, hockey equipment, cement and other consumer and industrial products.
While energy, potash, critical minerals and fish exports may be exempt, the list of goods subject to the new duties includes a broad range of items.
The United States has set a one‑month window for negotiations before the tariffs take effect. Trade Representative Jamieson Greer told lawmakers he hopes to reach interim agreements with Canada and Mexico before the end of the year, though tougher issues such as automotive rules of origin and labor and environmental standards may extend beyond 2025.
Greer characterized the tariffs as part of a broader effort to protect American workers and address the U.S. trade deficit, which he called a national emergency. Carney reaffirmed that the government will support Canadian workers, families and businesses.
Analysts note that the dispute could affect supply chains and market stability, but the ultimate impact remains uncertain pending the outcome of the negotiations.
Elon Musk, chief executive of SpaceX, told The Economist that rapid progress in artificial intelligence is unlikely to be stopped and will likely bring broad benefits. He also expressed concern that the technology could drift from human values.
The interview, conducted by The Economist's editor‑in‑chief Zanny Minton Beddoes, examined AI safety cooperation among technology firms and Musk's involvement in European political debates.
Musk said that he believes the most likely outcome of AI advancement is "incredible abundance for all" and that he cannot halt development even if he wanted to. Musk said his earlier concerns about AI threats led him to adopt a more optimistic perspective. Regarding politics, Musk said he does not support far‑right views and denied accusations of anti‑Muslim sentiment. He said he opposes "antithetical" ideas and practices such as rape, murder, and the imposition of laws that conflict with Western norms. Musk also said that senior executives at his companies represent diverse racial backgrounds. Musk described his partner, Shivon Zillis, as half Indian and noted that one of his children is named after an Indian physicist. When asked about his recent visits to the United Kingdom, Musk said he had been there a few years ago. He noted that his social media platform had amassed nearly 250 million followers at the time of the interview. An activist group recently altered advertisement displays in London to criticize his wealth.
The interview underscores ongoing debate over the pace of AI innovation and the responsibilities of prominent technology leaders, with the long‑term societal impact remaining uncertain.
At a meeting of the Economic Club of Washington on Thursday, philanthropist David Rubenstein told Harvard University President Alan Garber that many universities had reached settlements with the Trump administration, but Harvard had not, and the audience applauded.
Over the past year and a half, the Trump administration has taken steps affecting higher education, including demands for policy compliance and threats to federal research funding.
Garber said that, after filing a lawsuit against the administration in April and May 2025, the university has a better understanding of the financial and strategic implications. He said he has no regrets, emphasizing concerns that federal research funding could be reduced and that a proposed rule from the White House Office of Management and Budget would increase political influence over grant-making. He added that the suit seeks to protect research funding and preserve the ability of international students and scholars to study in the United States. Harvard, together with university associations, Jewish groups and other organizations, has filed briefs asking an appeals court to uphold a previous decision that favored the university.
The case is pending, and its resolution could affect future federal research policy and the participation of international scholars in U.S. higher education.
Intel forecast third‑quarter revenue of $15.8 billion to $16.8 billion, above the $15.1 billion analyst estimate, and raised its full‑year capital expenditure target to $20 billion as AI‑driven demand for its chips grows. The company reported second‑quarter sales of $16.13 billion, a 25 % increase, and adjusted profit of 42 cents per share, surpassing expectations of $14.42 billion in revenue and 21 cents per share.
Chief Financial Officer David Zinsner said Intel has signed long‑term agreements for data‑center CPUs and specialized XPUs, and will increase spending on its forthcoming 14A manufacturing process, which is slated for volume production in 2028. The firm holds about $30 billion in cash and a $10 billion line of credit and has not ruled out a share sale.
Foundry revenue reached $5.77 billion, beating the $5.55 billion estimate, and Intel secured Tesla as a customer for its next‑generation 14A process. Laptop and desktop sales were $8.88 billion, above the $7.89 billion forecast, while data‑center revenue was $6.26 billion, higher than the $5.37 billion estimate. Rivals Arm Holdings and AMD rose modestly in after‑hours trading.
Intel’s strategy to regain technology leadership and compete with Nvidia and AMD is being validated by strong AI‑driven demand, though the company must continue to convert data‑center shortages into sustained revenue growth.
Brent crude rose more than 6% to $100 a barrel on Thursday, the highest level since May, after Houthi militia attacked oil tankers in the Red Sea and U.S. forces conducted strikes against Iran. The price increase heightened concerns about tighter global energy supplies and pushed gasoline and diesel prices higher.
The price surge followed a brief ceasefire between the United States and Iran that had kept oil prices near pre‑conflict levels. The truce broke down earlier this week, prompting renewed military activity and a statement from U.S. Secretary of State Marco Rubio that Iranian leaders were not ready to make a deal. Ongoing hostilities in the region have raised concerns about disruptions to oil exports.
Petrol prices in the United Kingdom rose by 5 pence per litre since the start of July, reaching almost £1.56, while diesel averaged £1.72 per litre, according to the RAC. In the United States, average gasoline prices surpassed $4 a gallon, up from $3.92 a month earlier, said motorist advocacy group AAA.
Higher fuel costs have contributed to inflation trends. UK inflation fell to 2.6% in the year to June, helped by slower diesel and petrol price growth, and U.S. inflation was 3.5%, according to recent data. Investment manager Jonathan Raymond of Quilter Cheviot said that expensive fuel and energy can ripple through the wider economy, increasing costs for businesses and feeding into food prices. He warned that persistently elevated energy prices may pressure central banks to keep interest rates higher for longer or even raise them, a prospect that could strain mortgage holders and borrowers.
The Bank of England has kept its benchmark interest rate at 3.75% for four consecutive meetings. Paul Dales, chief UK economist at Capital Economics, said he believed the Bank will almost certainly hold rates again, though analysts expect cuts next year if energy price rises ease. Federal Reserve chair Kevin Warsh told Congress that the central bank has no tolerance to persistently elevated inflation and emphasized a commitment to restoring price stability amid the Middle East conflict. Former President Donald Trump had previously urged his successor Jerome Powell to cut rates, and Warsh indicated he will seek to fulfill Trump's demand for lower borrowing costs.
EU foreign policy chief Kaja Kallas questioned Washington’s rationale for imposing new tariffs on European goods during an interview on July 24, 2026, on the sidelines of the ASEAN Foreign Ministers’ Meeting in Manila. The European Union and the United States concluded a transatlantic trade agreement in 2025, and Kallas said the EU has honored its commitments under that deal. She said allegations that the EU’s labor standards fall short of U.S. expectations are unfounded, noting that EU labor laws guarantee paid vacations and strong employee protections. Kallas added that the EU will seek clarification from the United States and described the tariffs as a surprise that appears to conflict with the agreement. The request for clarification comes amid ongoing trade discussions between the two parties, with no immediate resolution announced.