General Market News

Swiss financial regulator FINMA is urging banks and watchdogs to rapidly adopt AI technology to counter escalating cybersecurity risks posed by AI-enhanced threats. FINMA's president Marlene Amstad emphasized the need for faster vulnerability patching as hackers accelerate attacks, following a hackathon with international supervisors to develop new regulatory tools.

• FINMA created a forum within the International Organization of Securities Commissions to promote AI adoption by watchdogs covering approximately 95% of global financial markets
• Around 100 policy and technology specialists participated in a hackathon this week to jointly build tools for crypto-market supervision, with regulators exploring embedded safeguards in digital asset systems
• Recent AI models like Anthropic's Mythos have exposed vulnerabilities and operational risks, prompting U.S. export suspensions on national security grounds while China develops domestic alternatives

Following a 60-day U.S. sanctions waiver on Iran, multiple middlemen and National Iranian Oil Co (NIOC) have approached Indian refiners offering discounted Iranian crude at $3-4 per barrel below similar regional grades. However, Indian refiners face challenges absorbing the oil in the near term due to existing supply commitments through August and unclear payment mechanisms and banking channels.

• Traders from Singapore and Dubai, along with NIOC directly, are contacting Indian refiners to sell discounted Iranian oil following Washington's temporary sanctions waiver
• Indian refiners have limited capacity to absorb Iranian crude immediately as most have secured supplies through August and Middle Eastern suppliers are pressing buyers to honor annual contracts
• Iran was India's second-largest oil supplier in 2010/11 before U.S. sanctions forced India to halt crude imports from Tehran in May 2019; India received two Iranian cargoes in April 2024 after a previous 30-day waiver

U.S. solar developers secured federal tax credits for over 200 gigawatts of capacity before a July 4 deadline, potentially doubling current solar capacity. The phaseout of renewable energy subsidies, accelerated under President Trump's 2025 tax law, is projected to increase wind and solar contract prices by 40-120%. Despite higher costs, developers say solar will remain competitive due to surging electricity demand and retail power prices driven by data centers and AI.

• Tax credits worth at least 30% of project costs are ending after 20 years, with developers rushing to 'safe harbor' projects by the deadline to preserve eligibility for completion within four years
• Early market data from Texas shows some renewable energy contract prices have jumped 120%, with broader increases of 40-50% expected across wind and solar projects
• Even without subsidies, utility-scale solar and onshore wind remain the cheapest forms of energy generation, and developers expect projects to break even in 5-6 years versus 3 years currently due to rising electricity prices

Vessel traffic through the Strait of Hormuz declined on Friday following an attack on a Taiwanese-operated ship, prompting the U.N. shipping agency to temporarily halt evacuations. Despite the setback after a recent U.S.-Iran ceasefire, some tankers continued transiting to load oil, though overall traffic remains well below pre-conflict levels that averaged 125 daily sailings before hostilities began in February.

• Tanker traffic dropped to 13 transits on Friday from 27 on Wednesday, while overall June 24 traffic of 62 vessels represented only 53% of year-ago levels
• At least four tankers, including three very large crude carriers capable of hauling 2 million barrels each, entered the Gulf to load oil despite security concerns
• Iran's deputy foreign minister stated safe passage cannot be guaranteed without coordination with Tehran, highlighting ongoing geopolitical risks to the critical waterway

Estrogen patches face significant shortages as prescriptions surged 162% over two years, driven by increased menopause awareness and the FDA's removal of a 20-year-old black box warning in fall 2023. Three types of patches are currently in shortage according to healthcare providers, though the FDA has not officially declared a shortage. Manufacturers struggle to increase production due to complex manufacturing processes, with experts predicting shortages could persist for one to two years.

• Estrogen patch prescriptions more than doubled from 594,000 in June 2024 to 1.6 million in May 2025, now representing 44% of all estrogen prescriptions as doctors prefer topical delivery over oral administration for safety reasons
• Manufacturers cite 'unprecedented demand' and face challenges scaling up production because transdermal patches require highly complex manufacturing processes with lower profit margins than brand-name drugs
• Patients and doctors are turning to alternatives including estrogen gels and compounded creams from pharmacies (costing around $50 per month out-of-pocket), while the shortage has spread to other hormone replacement therapies including estradiol creams and progesterone pills

Germany's parliament budget committee approved the government's plan to purchase a 40% stake in Franco-German tank maker KNDS for up to €7.2 billion ($8.21 billion). The approval clears the path for Berlin to become an equal partner in the defense company and enables KNDS to proceed with its dual listing in Frankfurt and Paris next month.

• The €7.2 billion investment aims to secure joint control and strengthen oversight of strategic security matters while bolstering Europe's defense industrial base
• The approval removes a key hurdle for KNDS's initial public offering, planned as a dual listing in Frankfurt and Paris next month
• The IPO is viewed as one of Europe's most significant defense sector flotations in recent years

Germany has joined 12 other EU countries in opposing the bloc's methane emissions rules for oil and gas imports, set to take effect in 2027, warning the regulation could disrupt jet fuel supplies already strained by the Iran war. The rules require monitoring and verification of methane emissions from fuel deliveries to curb greenhouse gas leaks. Germany and other member states are calling for at least a three-year delay, though the European Commission insists the law will proceed with only minor implementation adjustments.

• Germany's Economy Minister warned the methane regulation would prevent LNG and petroleum product imports from 2027, threatening the country's gas and kerosene supply security
• Twelve EU governments including Italy, Czech Republic, and Netherlands are seeking a three-year delay of the rules, while the Commission has drafted plans to waive penalties for companies that breach them
• Jet fuel prices have surged due to the Iran war's closure of the Strait of Hormuz, which typically supplies about 20% of Europe's jet fuel demand, adding urgency to supply concerns

Global tech stocks experienced significant volatility this week, particularly semiconductor companies, as concerns over AI-related capital expenditures and rising chip prices created market uncertainty. The selloff saw Korea's KOSPI drop nearly 10% and the SOX chip index fall 8%, while Apple's announcement of higher iPad and MacBook prices due to surging memory costs triggered further declines. Meanwhile, UK markets remained stable despite Prime Minister Keir Starmer's resignation, as attention shifts to likely successor Andy Burnham.

• Semiconductor stocks faced sharp selloffs with Korea's KOSPI sliding nearly 10% and the SOX chip index down 8%, despite initially positive earnings from Micron Technology
• Apple announced price increases for iPads and MacBooks due to surging memory and storage chip costs, highlighting a downside of the AI spending boom
• UK Prime Minister Keir Starmer resigned after months of pressure, marking Britain's seventh prime minister in a decade, though markets took the news in stride

Edison, the Italian unit of French energy group EDF, has completed a €200 million reconstruction of its wind farm portfolio in central Italy's Abruzzo region, more than doubling renewable power output. The project reduced turbine numbers by 73% while increasing annual electricity production 2.5 times to 355 gigawatt hours, enough to power over 131,000 households. This is part of Edison's broader goal to increase renewable capacity from 2.3 GW to 4 GW by 2030.

• Annual renewable electricity production from the upgraded wind portfolio increased 2.5 times to 355 GWh, sufficient to meet power needs of more than 131,000 households
• Edison cut the number of turbines on mountain ridges by 73% while investing over €200 million in the modernization project
• Upgrading Italy's existing wind plants could add more than 13 GW of renewable capacity, helping the country reach its 2030 target of 26 GW of installed wind power

A severe heatwave spreading across Europe has caused at least 55 deaths in France, with temperatures reaching 40.9°C in Paris and up to 40°C expected in the Netherlands. Scientists have identified this as the most severe heatwave ever recorded in Europe, driven by an 'Omega block' weather pattern and made virtually impossible without human-caused climate change.

• Germany's A2 motorway buckled across several lanes due to extreme heat, damaging up to 30 vehicles, while Britain issued red heat alerts for three consecutive days for the first time
• France's state utility EDF committed €80 million for cooling systems in schools and care centers, while Paris police asked organizers to cancel major events including the Pride festival
• Climate scientists determined the heatwave pushed temperatures 18°C above seasonal averages and that current night-time temperatures are 100 times more likely than two decades ago due to climate change

A record-breaking heatwave in Paris and London has exposed critical vulnerabilities in European housing stock built to retain rather than deflect heat. With temperatures reaching 40.9°C in Paris and 36.7°C in Britain, residents are struggling in homes lacking air conditioning and proper cooling infrastructure. Experts warn that installing AC can worsen the problem through increased energy use and urban heat island effects, urging passive cooling solutions instead.

• Only about 25% of European households have air conditioning compared to 90% in the U.S. and Japan, leaving residents vulnerable as temperatures rise faster in Europe than other continents
• Analysis from the Mayor of London found 1 million London homes could be at risk of overheating, with implications for health, energy use, and worker productivity
• Experts recommend passive cooling measures like external shutters, reflective surfaces, cross-ventilation, and urban greening rather than mass AC installation, which can increase strain on power grids and emissions

Shipping traffic through the Strait of Hormuz is recovering one week after a U.S.-Iran interim peace deal, with 125 transits recorded June 15-21, the highest weekly total since war began in late February. However, Thursday's attack on the Ever Lovely container ship by Iran's IRGC has renewed uncertainty, halting recovery momentum and forcing companies to weigh transit risks against competitive pressures.

• Daily traffic reached only 53% of previous year levels despite recovery, as competing Iranian and U.S.-Omani routing authorities create confusion with no agreed navigation rules
• War-risk insurance premiums have surged from 0.05% to over 0.7% of hull value per transit, creating severe business model stress for shipping companies
• Saudi Arabia remains notably absent from Gulf exports, routing all shipments through Yanbu in the Red Sea instead of risking Strait passage

Two powerful earthquakes (magnitudes 7.2 and 7.5) struck Venezuela near Caracas on June 25, 2026, killing at least 235 people with nearly 50,000 reported missing. Rescuers are working through debris in a nation already weakened by decades of economic crisis, while international aid is arriving from multiple countries including the U.S., Mexico, and Russia.

• At least 250 buildings damaged or destroyed, including eight hospitals; the coastal city of La Guaira and seaside town of Moron were among the hardest-hit areas
• The U.S. eased sanctions to allow earthquake aid and is sending rescue teams, while SpaceX activated free Starlink service through July 25 to restore communications
• Thousands are now homeless in a country where 8 million people already required humanitarian assistance before the disaster, with many residents living in vulnerable hillside 'barrios'

Russian energy giant Gazprom forecasts its core earnings (EBITDA) to grow 6-7% in 2026, driven by increased domestic gas sales and higher exports to China. The company, which reported 2.9 trillion roubles ($37.7 billion) in EBITDA for 2025, has been diversifying away from Europe since Russia's 2022 conflict with Ukraine. Domestic supplies are expected to rise 2-4%.

• Gazprom supplied 38.8 billion cubic metres of gas to China via the Power of Siberia pipeline in 2025, with an agreement reached during Putin's September visit to increase annual volumes by 6 bcm to 44 bcm
• The company has been forced to pivot from its once-dominant position in the European gas market due to deepening economic and political rifts with the West since 2022
• Efforts to significantly expand China exports have faced obstacles over pricing disagreements and other unresolved issues

Malaysia customs seized 72 server units containing advanced AI chips valued at $12.93 million at Kuala Lumpur International Airport on June 5, thwarting an illegal smuggling attempt. The chips were falsely declared as 'computer components' and intended for re-export to another Asian country without required permits. This seizure follows Malaysia's 2023 controls on high-performance U.S.-origin chips amid American pressure to prevent their flow to China.

• Authorities found the servers in the airport's free trade zone, with Malaysia listed as a transit destination to circumvent export restrictions before reaching the final Asian destination
• The shipment violated Malaysia's Strategic Trade Act, which requires permits for re-exporting advanced chips, and a Malaysian company facilitating the shipment is under investigation
• Malaysia previously detected a Chinese company using Nvidia chips for AI development and has been implicated in prior U.S. cases involving illegal AI chip smuggling to China

France's national statistics department Insee disclosed a cyberattack that compromised personal data of approximately 12,800 current and former employees and civil service corps members. The breach exposed identities and professional contact details but did not access sensitive information such as passwords, bank details, or social security numbers.

• Approximately 12,800 current and former Insee staff and civil service corps members were affected by the data breach
• Compromised data was limited to identities and professional contact details only
• No sensitive information including passwords, personal contact details, bank details, social security numbers, or health information was accessed in the attack

Global equity fund inflows plummeted 86% to $7.51 billion in the week ending June 24, 2026, down from $55.53 billion the prior week, as concerns over debt-funded technology spending and hawkish Federal Reserve policy dampened investor appetite. Technology sector funds reversed course with $17.83 billion in outflows after the previous week's $21.5 billion in inflows, while May PCE inflation hit 4.1%, its highest since April 2023.

• U.S. equity funds saw $3.53 billion in outflows while European and Asian funds attracted $6.28 billion and $2.95 billion respectively, both down from prior week levels
• Bond funds extended their buying streak to 12 consecutive weeks with $10.85 billion in inflows, while money market funds posted $42.8 billion in outflows, the largest weekly withdrawal since April 15
• Emerging market equity funds recorded their ninth straight week of outflows at $3.39 billion, though EM bond funds attracted $132 million in their first inflow in three weeks

NATO allies have promised to strengthen Arctic defenses following pressure from President Trump, but face significant challenges requiring hundreds of billions in investment. The initiative, called Arctic Sentry, aims to counter Russia's military buildup in the region, particularly monitoring the Kola Peninsula which hosts two-thirds of Russia's second-strike nuclear forces. European allies are scrambling to reassure Washington of their commitment amid Trump's threats to withdraw from NATO and his previous push to acquire Greenland.

• Russia operates 42 icebreakers compared to just two for the United States, reflecting a massive capability gap in Arctic operations that will require vast investments in ships, submarines, drones, and satellites potentially costing hundreds of billions of dollars
• Climate change is weakening submarine detection capabilities as warming oceans alter sound travel through water, requiring new generations of sensors to monitor Russian nuclear submarines operating from the Kola Peninsula
• Nordic countries are leading the response with plans to meet NATO's 5% GDP defense spending target by 2035, while Canada announced C$35 billion in Arctic defense investments, though uncertainty remains about U.S. commitment under Trump

Red Lobster creditors filed a lawsuit alleging that former controlling shareholder Thai Union exploited the restaurant chain through its 'Everyday $20 Ultimate Endless Shrimp' promotion, described as a 'car crash' that contributed to Red Lobster's May 2024 bankruptcy filing. The suit claims Thai Union forced Red Lobster to buy overpriced shrimp and prioritized its own profits over the restaurant chain's financial health.

• Thai Union allegedly forced Red Lobster to purchase increasing amounts of above-market priced shrimp and banned competitors from supplying the chain, causing restaurants to run out of stock and be unable to turn over tables
• Red Lobster filed for Chapter 11 bankruptcy in May 2024 after defaulting on a $275 million term loan from Fortress Investment Group in September 2023, ultimately being acquired by RL Holdings in September 2024
• The lawsuit claims Thai Union 'treated the company as little more than a distribution arm for its own products' and divested its stake in May 2024 without contributing capital to the bankruptcy process

A severe storm struck central New Zealand on Friday, forcing the cancellation of approximately 200 flights at Wellington's capital airport and leaving thousands without power. The low-pressure system brought wind gusts exceeding 150 kph overnight, causing flooding, landslides, and widespread disruptions across the region.

• Wellington Airport cancelled most flights on Friday with evening services also affected; Air New Zealand suspended all domestic flights to and from the capital
• Wellington Electricity reported 4,000 customers lost power with restoration possibly taking until mid-next week, after already restoring power to 3,000 earlier
• MetService issued severe weather warnings for winds up to 120 kph and heavy rain, with emergency services responding to flooded roads and landslides in Lower Hutt