Trump Warns of Renewed Strikes on Iran if Negotiations Fail
President Donald Trump stated on Monday that the United States is engaged in "active talks" with Iran, suggesting a potential agreement to de-escalate the conflict. However, he issued a stern warning that if the negotiations do not yield results, the U.S. will resume military strikes. "We are having very good dialogue," he said. "I think something can happen, and if it does, that's great; if not, we go back to where we were two days ago." Later, at a campaign rally in Michigan, Trump spoke about Iran, saying, "You can't bribe them. You have to beat them, and we'll beat them hard. But let's see how it goes. Right now, there are very friendly talks underway." Iran's Foreign Ministry spokesman, Esmaeil Baghaei, responded that messages are still being exchanged through intermediaries and that Iran has not abandoned diplomacy, but reports claiming Tehran is requesting negotiations are "fabricated."
Satellite Images Show Smoke Over Saudi Oil Facilities, Putting Traders on Edge
Oil traders have been closely analyzing satellite imagery that shows smoke rising above several Saudi oil facilities over the past 48 hours. However, the data makes it nearly impossible to determine if recent attacks by Iran-backed groups have impacted the kingdom's energy production. Images from the European Union's Sentinel-2 Earth observation satellite show flaring at the Abqaiq crude oil processing plant. This facility is a critical hub in Saudi Arabia's oil production and export system, with a daily processing capacity of about 7 million barrels. In 2019, an attack by Houthi rebels on the Abqaiq facility halved Saudi Arabia's crude output.
LVMH's Fashion and Leather Goods Division Posts Modest Growth Amid Middle East Conflict
The fashion and leather goods division of LVMH, which owns brands like Louis Vuitton and Dior, saw only marginal sales growth in the last quarter, as the conflict in the Middle East dampened spending by wealthy consumers. The French luxury group reported on Monday that organic sales in its largest and most profitable division grew by just 1%, falling short of the 1.52% predicted by analysts surveyed by Bloomberg. This marks the division's first revenue growth in two years. The luxury sector has been in a prolonged slump, initially driven by reduced spending from Asian consumers, and more recently by a decline in demand at Middle Eastern shopping hubs like Dubai due to the war. LVMH stated that without the conflict, the group's quarterly sales would have grown by 4%, rather than the 3% actually recorded. The company's recurring operating profit for the first half of the year was €8.69 billion ($9.9 billion), exceeding analyst expectations, with an operating margin of 22.5%, roughly flat year-over-year.
Apple Surpasses NVIDIA to Reclaim Title of World's Most Valuable Company
On Monday, Apple closed as the world's most valuable company, overtaking NVIDIA. This is the first time the iPhone maker has led the AI chip giant in market capitalization since April 2025. NVIDIA's shares fell 5% on Monday, bringing its market value to $4.77 trillion, amid a broader decline in AI chip stocks driven by investor concerns over the high costs associated with AI infrastructure. NVIDIA had held the top spot since taking it from Microsoft in June 2025, briefly touching the $5 trillion market cap mark in October. Meanwhile, Apple's shares rose 1%, pushing its market cap to $4.95 trillion. So far in 2026, Apple's stock is up 24%, outperforming the broader market. Investors have rewarded Apple's strategy of restraint in AI capital expenditure, as the company prefers to lease computing power rather than build its own data centers.
NVIDIA's New $750 Billion AI Deals Rekindle Concerns Over Circular Financing
NVIDIA is advancing a new wave of AI-related transactions with a potential value exceeding $750 billion, accelerating its investment pace. However, critics warn that these deals may be artificially inflating demand and valuations across the industry. NVIDIA announced that a partnership with South Korean conglomerate SK Group, disclosed late Friday, will see the two companies' business dealings exceed $500 billion. The world's largest company by market cap is also discussing providing up to $250 billion in guarantees to help OpenAI lease computing power for a data center project in the United States, which would be one of the largest financing transactions between the chipmaker and a client. From Wall Street giants like Goldman Sachs to investor Michael Burry, famed for "The Big Short," warnings about the "circular" nature of these agreements have been coming for months, as NVIDIA provides financing or takes equity stakes in companies and projects that use its chips. The pace of these deals is accelerating, despite the risk that they could distort demand, lead to poor decision-making, and amplify losses if AI fails to generate profits for investors who have spent hundreds of billions of dollars.
State Street Debates the Future of the 10-Year Treasury Yield, a Key Metric for Bessent
The most intense debate at State Street Global Advisors, which manages $6 trillion in assets, is about the outlook for the 10-year U.S. Treasury yield, a key financial indicator closely watched by Treasury Secretary Scott Bessent. "I'll be honest with you, sometimes I'm stumped," Lori Heinel, State Street's chief investment officer, said in an interview last week. "This is the most debated issue internally." Entering 2026, State Street expected the yield to fall to 3.5% or lower by year-end, but instead it has been climbing. The yield broke above 4.7% last week, the first time since the month Donald Trump began his second term. The surge highlights how the war in Iran has upended economic expectations by driving up oil prices and stoking inflation fears.
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