TL;DR

Supreme Court clears Trump federal layoffs; 200% drug tariffs threatened; FICO plunges on FHFA VantageScore move.

Highlights

• Supreme Court allows Trump administration to proceed with mass federal workforce layoffs, potentially impacting up to 250,000 jobs 1.
• Trump threatens 200% tariffs on imported pharmaceuticals, with a 12–18 month grace period; similar measures planned for semiconductors and copper 2.
• FHFA approves VantageScore 4.0 for Fannie Mae and Freddie Mac mortgages; FICO shares drop 15% on competitive threat 4.
• US consumer credit growth slows sharply in May; revolving credit (credit cards) contracts at 3.2% annualized rate 10.
• Trump publicly urges Fed Chair Powell to cut rates, citing a White House study claiming tariffs have not raised inflation 9.
• Apple names Sabih Khan as new COO, with CEO Tim Cook to oversee design teams after Jeff Williams retires 3.
• US Court of Appeals vacates FTC’s “click-to-cancel” rule, delaying new subscription cancellation standards 5.
• Trump orders resumption of Ukraine arms shipments after Pentagon pause; additional Patriot battery for Kyiv under consideration 615.
• US and Israel sign memorandum to expand collaboration in AI and energy sectors 12.
• UniCredit increases Commerzbank stake to 20%, with plans to approach 29% ownership 11.
• US sanctions North Korean and Russian actors over IT worker scheme funding DPRK weapons programs 8.
• French intelligence says recent US-Israeli strikes set back Iran’s nuclear program by several months 7.

Commentary

The Supreme Court’s decision to lift the block on mass federal layoffs gives the Trump administration immediate leeway to cut government jobs, with up to 250,000 positions potentially affected 1. This move could have a direct impact on regional labor markets and contractors tied to federal spending, as well as broader implications for consumer sentiment in areas with high public-sector employment 1.

Trade policy remains a key market driver. The administration’s threat of 200% tariffs on imported pharmaceuticals, and similar plans for semiconductors and copper, signal a continued push for domestic manufacturing 2. While the 12–18 month grace period gives companies time to adjust, the risk of higher costs and supply chain disruptions for healthcare and tech sectors is notable 2. The White House’s claim that tariffs have not contributed to inflation, and Trump’s public call for a Fed rate cut, add complexity ahead of the late-July FOMC meeting 9.

In financials, the FHFA’s approval of VantageScore for Fannie Mae and Freddie Mac mortgages breaks FICO’s long-standing monopoly, reflected in FICO’s 15% share price drop 4. This change could expand mortgage access but introduces new competitive and credit risk dynamics for lenders and credit scoring firms 4. Meanwhile, the sharp slowdown in consumer credit growth, especially in revolving credit, points to more cautious consumer behavior—potentially a headwind for retail and discretionary sectors 10.

On the corporate front, Apple ’s COO transition and Tim Cook’s increased oversight of design signal a shift in operational leadership, but the company’s supply chain continuity appears intact 3. The vacating of the FTC’s “click-to-cancel” rule delays new consumer protections for subscription services, which may benefit retailers and streaming firms in the near term 5.

Geopolitically, the resumption of US arms shipments to Ukraine and consideration of additional Patriot batteries keep defense and energy sectors in focus 615. Sanctions on North Korean and Russian actors over cyber schemes, and confirmation from French intelligence that US-Israeli strikes have delayed Iran’s nuclear program, maintain a backdrop of elevated global security risks 87.