TL;DR

China threatens EU over sanctions, U.S. tariff risks hit autos, Verizon raises outlook on Q2 beat.

Highlights

• China threatens countermeasures after EU sanctions target Chinese banks over Russia; China-EU summit set for July 24 116.
• South Korea and Japan intensify talks to avert 25% U.S. tariffs by August 1; U.S. shows no sign of flexibility 2.
• Japan’s ruling coalition loses upper house majority, yen firms on political uncertainty; policy gridlock risk rises 3.
• Stellantis warns of €2.3B H1 loss, citing U.S. tariffs and asset writedowns; North American shipments drop 25% 5.
• Verizon beats Q2 earnings and revenue forecasts, raises 2025 profit and free cash flow guidance 4.
• Ryanair Q1 profit more than doubles on strong demand; warns of possible Boeing delivery delays if U.S. tariffs imposed 9.
• NFT market cap jumps 28% to $6.6B on Ethereum rally; Dynamix SPAC to create largest public ETH treasury via Nasdaq 1014.
• Trump posts pro-Bitcoin video, drawing attention to crypto policy; digital asset sentiment improves 17.
• BP names ex-CRH CEO Albert Manifold chairman amid investor push for shift back to fossil fuels 8.
• Alaska Airlines grounds fleet for three hours due to software outage; expects residual disruptions 7.
• Dell confirms breach of demo lab by World Leaks extortion gang; no customer or production data compromised 12.
• Kremlin signals possible Putin-Trump meeting in Beijing as geopolitical risk remains in focus 11.

Commentary

Trade and geopolitical risk are front and center as US markets prepare to open. China’s threat of retaliation against EU sanctions—just days ahead of the China-EU summit—raises the risk of further disruptions to global supply chains, particularly in banking and cross-border financial flows 116. Meanwhile, South Korea and Japan are making last-minute efforts to avoid steep U.S. tariffs, but with little indication of flexibility from Washington, auto and manufacturing supply chains remain exposed 2. Stellantis’s warning of a €2.3 billion first-half loss, driven by new U.S. tariffs and asset writedowns, highlights the immediate earnings impact for global automakers, especially those with significant North American exposure 5.

In Asia, Japan’s ruling coalition lost its upper house majority, strengthening the yen on safe-haven flows and raising the risk of policy gridlock 3. This could complicate Tokyo’s negotiations with the U.S. on tariffs and delay fiscal or monetary responses 3. For US traders, the yen’s move and potential volatility in Japanese equities and exporters warrant attention, especially as global trade tensions remain elevated 3.

On the US corporate front, Verizon ’s Q2 beat and raised outlook provide a positive read for the telecom sector, though ongoing consumer postpaid losses highlight persistent competition 4. Ryanair ’s strong results and optimistic outlook for summer travel underscore robust demand in the airline sector, but the company’s warning about possible aircraft delivery delays if U.S. tariffs hit Boeing is a reminder of ongoing supply chain risks 9. Alaska Airlines ’ temporary fleet grounding due to a software outage adds to operational concerns in the sector 7.

Crypto markets saw renewed momentum, with NFTs surging and Ethereum -related activity boosted by the Dynamix SPAC deal and positive sentiment following Trump’s Bitcoin video post 101417. While BP’s leadership change signals a possible strategic pivot back to fossil fuels, the immediate impact for US energy equities may be limited but worth monitoring as sector positioning evolves 8. Dell ’s demo lab breach appears contained, with no impact on customer or production systems 12.