Iranian lawmakers are deliberating on the precise wording of a proposed agreement with Oman concerning the Strait of Hormuz, while US President Donald Trump insists that negotiations are advancing. Trump stated late Thursday that talks are "moving forward" when asked by White House reporters, but offered no further details. Iran's Deputy Foreign Minister Kazem Gharibabadi earlier this week indicated that a "general" understanding had been reached with Oman, and a lawmaker told state television that the final text and specifics of the agreement with Oman will be "published soon." The semi-official Fars news agency reports that some Iranian politicians are pushing for terms such as barring US and Israeli vessels from the strait, a demand that would conflict with Washington's call for free passage, though the number of commercial ships flying US or Israeli flags globally is limited.
President Donald Trump on Friday used a meeting with mining executives to promote $3 billion in US investments in critical minerals extraction, aiming to lessen the nation's reliance on foreign sources. Trump stated at the State Department event that these projects will "create thousands of jobs and boost our economic stability and security." He added, "We are bringing our miners back to work and restoring America's rightful place as a global mining superpower." Trump specified that the investments include a $1.4 billion loan agreement from the Defense Department's Strategic Capital Office to Sila Nanotechnologies Inc. Other investments include $400 million from the Pentagon to expand scandium production in Australia, a metal essential for aerospace and defense, and $150 million for Niron Magnetics Inc., a rare earth company in Minnesota.
On Friday, SpaceX shares closed up 15.83% with a trading volume of $30.016 billion, ranking first in US stock market turnover. Reports indicate that SpaceX is planning to build its own power generation facilities to support a large-scale semiconductor manufacturing plant it is co-developing with Tesla in Texas. Earlier this week, Riley Trettel, SpaceX's head of energy and data center development, told a public meeting in Grimes County, Texas: "We will supply our own power. We will build a gas-fired power plant and also a large-scale battery array for energy storage. We will start this project almost immediately. We need to begin earthwork and start building the infrastructure and foundations, and we will proceed right away." This statement provides more details on the new factory project, codenamed "Terafab," being advanced by Elon Musk's two companies.
Hedge funds have significantly reduced their bearish bets on the Japanese yen after coordinated intervention by US and Japanese authorities stabilized the currency. Data from the Commodity Futures Trading Commission on Friday shows that as of August 4, leveraged funds in futures and options markets cut their net short yen positions by about half to 63,600 contracts. This represents a sharp pullback from the end of June, when bearish bets surged to nearly 138,000 contracts, the highest since 2007. The yen had fallen to its lowest level since 1986, driven by the widening US-Japan interest rate differential, which spurred speculators to increase their short positions. Traders began reducing their short positions after the joint US-Japan intervention, and the yen has since rebounded.
White House National Economic Council Director Kevin Hassett stated that President Donald Trump and Federal Reserve Chair Kevin Warsh frequently discuss the economy. The White House's top economic advisor provided further details on Friday about the content and scope of calls between Trump and Warsh since he became Fed Chair in May. Hassett said he is not involved in these calls but is "certain" that the president does not pressure the Fed Chair on rate decisions. "Kevin Warsh and the president have a very close, long-standing relationship; they have connections in New York and Florida, and they have always discussed the economy," Hassett said in an interview. "I also communicate with Kevin, and so does Scott Bessent, so this is hardly news." Hassett affirmed that he is confident Trump does not tell Warsh how to handle interest rates.
US Treasury bonds rose after data showed US employers unexpectedly cut jobs in July, indicating challenges in the labor market that could affect the Federal Reserve's willingness to raise interest rates. The two-year US Treasury yield, which is sensitive to near-term Fed policy changes, fell as much as 9 basis points to 4.15% on Friday as traders scaled back bets on rate hikes in the coming months. The decline in the two-year yield narrowed later in the day due to rising oil prices, but it was still down 5 basis points, trading around 4.19%. Data from the Bureau of Labor Statistics on Friday showed nonfarm payrolls fell by 23,000 in July, while data for the previous two months was also revised sharply lower. The unemployment rate fell to 4.1%, and the labor force participation rate continued to decline.
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