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Treasury yields rose Tuesday despite benign consumer prices data as traders focused on the potential for tariff-driven inflation further down the line.

Short-dated yields, most sensitive to Federal Reserve interest-rate changes, led the move, rising more than four basis points, as yields across tenors reached the highest levels in several weeks. The 30-year bond’s yield touched 5% for the first time since early June.

Treasury yields rose Tuesday despite benign consumer prices data as traders focused on the potential for tariff-driven inflation further down the line.

Short-dated yields, most sensitive to Federal Reserve interest-rate changes, led the move, rising more than four basis points, as yields across tenors reached the highest levels in several weeks. The 30-year bond’s yield touched 5% for the first time since early June.

Renault SA lowered its profitability outlook for the year and named its finance chief Duncan Minto its interim chief executive officer to continue the French automaker’s turnaround.

Minto is taking over from Luca de Meo, who is leaving for Gucci owner Kering SA. The automaker cut its operating margin guidance to around 6.5% for 2025, from at least 7% previously, due to intensifying competition and declines in the automotive market. The search for a longer-term CEO is “well underway,” Renault said Tuesday.

Candidates for a permanent CEO include Dacia boss Denis Le Vot, Renault’s procurement chief Francois Provost and former Stellantis NV executive Maxime Picat, according to people familiar with the matter.

Renault has been recovering despite challenges including an uncertain transition to electric vehicles, escalating trade tensions and the growing competitiveness of Chinese manufacturers led by BYD Co. Minto and his successor will try to continue the turnaround after De Meo refreshed Renault’s lineup and bolstered profitability.

Google agreed to spend more than $3 billion to buy power for its data centers from Brookfield Asset Management hydroelectric plants, with plans to potentially quadruple the amount of supply. The power will come from the Holtwood and Safe Harbor plants, about 75 miles (121 km) southwest of Philadelphia, with 670 megawatts of generating capacity for 20 years, according to a statement.

Hyperscalers — the biggest data center developers that, in addition to Google, include Amazon.com Inc., Microsoft Corp. and Meta Platforms Inc. — have voracious appetites for electricity, and finding power supplies currently is one of the most critical pain points for the AI boom. The demand has revived enthusiasm for nuclear energy, caused the biggest buildout of gas generation in decades and boosted orders for new big turbines.

Citigroup Inc. shares rose to the highest level since 2008 after the bank said it would ramp up stock buybacks following a strong result in regulatory stress tests.

The bank plans to repurchase at least $4 billion of shares this quarter, Chief Financial Officer Mark Mason said Tuesday on a call with analysts. That’s more than the $3.75 billion the firm bought back in the entire first half of the year, and the plans helped push the stock briefly past $90 for the first time since the financial crisis.

Public perceptions of China have improved over the past year, according to a new survey, while those of the US have dimmed — a trend that coincides with President Donald Trump returning to office.

A median of 32% of respondents in high-income countries had a favourable opinion of China, according to a report by Pew Research Center released on Wednesday, the highest level in six years. In contrast, the figure for the US fell to 35%, the lowest in data going back to 2017.

Also, more respondents expressed confidence in President Xi Jinping than in a US leader, the first time that has happened since Trump’s first term. Still, the figures were low, at 24% to 22%.

The broadest part of the research was done from January to late April — a period that includes Trump announcing tariffs on nations around the world on his so-called Liberation Day, though the levies were later paused while trade deals were negotiated. Pew said some 28,000 people around the world were surveyed but didn’t indicate how many participated in the rich nations.

The Dow Jones Industrial Average fell Tuesday as worries over US inflation and a mixed bag of big bank earnings dragged the blue-chip index lower. The Nasdaq Composite, meanwhile, got a boost from gains in Nvidia.

The 30-stock Dow lost 313 points, or 0.5%. The Nasdaq jumped 0.5%, lifted by a more than 4% rise in Nvidia shares after the chip company said it hopes to “soon” resume deliveries of its H20 GPU sales to China. The S&P 500 dipped 0.1%, easing from a fresh record high it reached earlier in the session.

Meta Platforms Inc. is headed for another clash with the European Union after a €200 million ($232 million) fine failed to bring Facebook and Instagram into compliance with a tough new digital law. The European Commission wrote to the social network giant last week, cautioning that Meta’s pay or consent service — allowing ad-free services for a fee — needs further reworking, the Brussels-based EU executive told Bloomberg.

The procedural step paves the way for a formal EU warning and, eventually, periodic fines if Meta fails to appease the teams of Competition Commissioner Teresa Ribera and her tech-policy counterpart Henna Virkkunen. Meta was slapped with its initial penalty in April for breaching the Digital Markets Act — which lays out a list of dos and don’ts for Big Tech firms.

Oklo Inc. has selected a contractor to build its first nuclear power plant, a sign the energy startup is gaining momentum in its efforts to deliver a new type of reactor.

Kiewit Nuclear Solutions Co. agreed to be the lead constructor for a small reactor Oklo plans to install at Idaho National Laboratory. Oklo expects to submit an application for its design to the Nuclear Regulatory Commission by the end of this year, and the Idaho plant may be complete by late 2027, Chief Executive Officer Jacob DeWitte said Tuesday on Bloomberg TV.

The European Union assured Slovakia that it would take measures to soften the impact of a bloc-wide ban on Russian gas supplies from 2028 after Prime Minister Robert Fico demanded safeguards.

Fico sought guarantees from the bloc as he withheld support from the EU’s latest round of sanctions against Russia. The European Commission said it would address the risk of price spikes and costly cross-border tariffs in addition to providing legal help and funding, according to a letter delivered to the Slovak leader seen by Bloomberg News.

“I fully share your objectives to ensure affordable and secure energy to all EU citizens and businesses,” Commission President Ursula von der Leyen wrote in the letter to Fico. Measures will seek to “limit any impact on prices and markets” and implementation will be “gradual and well-coordinated,” she wrote.

US President Donald Trump said he reached a deal with Indonesia, without providing any specifics of what is included in the accord.

“Great deal, for everybody, just made with Indonesia. I dealt directly with with their highly respected President. DETAILS TO FOLLOW!!!” the US president posted Tuesday on social media.

The White House also did not immediately offer details of the agreement following Trump’s post. Indonesia’s economic affairs ministry did not respond to a request for comment outside of business hours in Jakarta.

Bank of England rate-setter Catherine Mann warned that unemployment fears and rising bills are prompting UK households to build a “rainy day fund” as the economy is held back by savings rates that remain much higher than before Covid.

Mann said on Tuesday that “cautious consumer behavior” has led to “significantly lower growth” in certain sectors such as hospitality and retail.

“They’re building up rainy-day funds, delaying holidays and holding off on big purchases while they assess the stability of their finances,” she said in an interview with Business in Wales published on Tuesday. “People are saving more than they used to, partly because they’re worried about potential job losses or rising bills.”

Helvetia Holding AG and Baloise Holding AG hired strategy consultant McKinsey for advice on Europe’s biggest insurance deal this year, according to people familiar with the matter.

McKinsey is set to earn tens of millions of Swiss francs from the multi-year project which is one of the largest consulting contracts currently in Switzerland, the people said, asking not to be identified, because the mandate hasn’t been publicly announced. The deal, which is creating the second-largest insurer in Switzerland, is expected to be completed by 2028.

“Helvetia does not comment on contractual relationships. However, we can confirm that we are engaging external advice in connection with the planned merger,” a spokesperson for Helvetia said. McKinsey and Baloise declined to comment.

European countries should do everything they can to avoid a trade war with the US, said Italian Prime Minister Giorgia Meloni.

“We agree that we must, at all costs, avoid a trade war between the two sides of the Atlantic,” Meloni said during a joint press conference with Austrian Chancellor Christian Stocker in Rome on Tuesday.

Meloni said she discussed the matter with Stocker and that it’s important for European leaders to work together toward a “reciprocally advantageous” accord.

On Monday, US President Donald Trump on Monday said he is still open to more trade negotiations with the EU after announcing a 30% levy on EU imports that will kick in on Aug. 1 if the two sides fail to agree on a better deal.

Stellantis NV will withdraw its support for a joint hydrogen-vehicle venture with Michelin and Forvia SE as the automaker cuts its exposure to the fledgling technology, putting the project’s future at risk.

The maker of Fiat cars plans to stop investing in the Symbio business that specialises in hydrogen fuel cells by 2026, Forvia and Michelin said in separate statements in response to Bloomberg queries. Stellantis declined to comment.

“Forvia confirms it has been made aware of Stellantis’ intention to stop its investments in hydrogen from 2026, including in Symbio,” the auto-parts maker said in an email. The move “has serious and immediate operational and financial consequences for Symbio’s future.”

Canadian consumer prices accelerated for the first time in four months and underlying price pressures were firmer, likely keeping the central bank from cutting interest rates later this month.

The consumer price index rose at a 1.9% yearly pace in June, accelerating from 1.7% in May, Statistics Canada data showed Tuesday. On a monthly basis, the index edged up 0.1%. Both figures matched the median projections in a Bloomberg survey of economists.

Headline inflation rose at a faster pace because gasoline prices fell to a lesser extent in June, while passenger cars and furniture saw tariff-driven price increases. Air transportation was the largest upside contributor to the monthly change in prices. Excluding energy, the price index was up 2.7% from last year.

The S&P 500 Index and the Nasdaq 100 Index opened near fresh records on Tuesday as traders welcomed a report showing consumer prices are cooling while weighing the outlook for bank earnings and global trade.

The S&P 500 rose 0.2% as of 9:51 a.m. in New York, paring some gains after briefly eclipsing the psychologically important 6,300 level. The Nasdaq 100 Index advanced 0.6%. That said, losses in bank stocks kept broader gains in check. Wells Fargo & Co. fell 4.2% after lowering its full-year guidance for net interest income.

BlackRock Inc. declined 6.1% after the investment firm’s net inflows missed analyst estimates in the second quarter. JPMorgan Chase & Co. slipped 0.1% even as investment bankers eked out a surprise gain in the latest quarter.

A SpaceX capsule carrying Axiom Space Inc.’s crew of astronauts from four nations has reached Earth after 18 days aboard the International Space Station.

The astronauts splashed down off the coast of California at 5:31 a.m. New York time on Tuesday, concluding a mission signalling the Texas-based company’s ambitions to work with countries to expand global access to space.

The crew of four flew to space last month atop a Falcon 9 rocket that blasted off from NASA’s Kennedy Space Center in Florida. The flight marked Axiom’s fourth crewed mission into low-Earth orbit and the first time astronauts from India, Poland and Hungary reached the ISS.

A former Pfizer Inc. scientist denied an allegation made by House Republicans that he conspired to delay the release of Covid shot data to hurt Donald Trump’s 2020 election prospects, the latest twist in a dispute that demonstrates how vaccines are increasingly becoming a political flashpoint.

Philip Dormitzer, a former top official at Pfizer, said the idea that he and his colleagues sought to prevent Trump from winning reelection is a “false conspiracy theory,” according to a letter to the House Judiciary Committee obtained by Bloomberg.

Dormitzer’s letter follows a resurgence of interest in Trump’s oft-repeated allegation that the drug industry conspired against him in 2020 by delaying the disclosure of good news about the Covid shot. In March, shortly after Trump’s second inauguration, the Wall Street Journal reported that federal prosecutors were investigating the matter.

Donald Trump asked Volodymyr Zelenskiy whether Ukraine could strike Moscow, an inquiry that the White House says was merely a question but one that came hours after he voiced frustration at Russian President Vladimir Putin’s refusal to accept a ceasefire in the war.

During a July 4 phone call with the Ukrainian president, Trump quizzed Zelenskiy about whether Ukraine could hit the Russian capital and St. Petersburg if given US long-range weapons, according to a person briefed about the conversation. Zelenskiy replied that it could if the US provided the weapons, the person said.

Asked about the details of the call, which were first reported by The Financial Times, White House Press Secretary Karoline Leavitt said: “President Trump was merely asking a question, not encouraging further killing. He’s working tirelessly to stop the killing and end this war.”

The conversation took place a day after Trump said he was “very disappointed” by a phone call with Putin, in which the Russian leader insisted he wouldn’t back down on his war aims.

Uber Technologies Inc. and Baidu Inc. plan to launch robotaxis on the ride-sharing platform in several markets outside of the US and mainland China through a multi-year partnership.

Baidu’s autonomous vehicles will be available on the Uber app in Asia and the Middle East later this year, the companies said in a statement Tuesday. Thousands of vehicles will be deployed as part of the partnership, the companies said. Future rollouts will also include Europe and Oceania, an Uber spokesperson said.

Shares of Uber rose as much as 1.4% after markets opened in New York. Baidu’s American depositary receipts jumped as much as 7%.

Michelle Bowman, the US Federal Reserve’s top bank cop, encouraged the financial industry to consider more innovation as one way to rope in credit-invisible Americans who often struggle due to insufficient credit histories.

“Innovation comes in many forms. One example is through banks’ use of alternative data, which can enable banks to provide services like affordable small-dollar loans or to provide access to credit invisibles who may not have access to loans and other financial services from traditional lenders,” Bowman said in prepared remarks for the Fed’s Financial Inclusion Conference in Washington.

She added that this growing area of focus also helps align service offerings with a customer’s financial goals.

Last year, the Federal Deposit Insurance Corp. said a record 48.3% of American households with bank accounts primarily use their mobile phones for routine banking. Despite the growing popularity of mobile banking overall, the agency noted that older households and lower-income households were less likely to bank via smartphone.

Citigroup Inc. is preparing to launch a premium credit card, returning to a competitive field as more banks target high-end customers with elaborate rewards offerings.

The bank is planning to launch a card named “Strata Elite” in the third quarter of the year that “rounds out our family of proprietary rewards cards,” it said in an earnings presentation Tuesday. The presentation did not include details on whether Citigroup will charge an annual fee for the card or what its specific rewards will be.

With the new card, Citigroup will be joining an increasingly crowded landscape. JPMorgan Chase & Co. recently announced it would hike the annual fee on its popular Sapphire Reserve credit card to $795 and launch a similarly priced version for businesses as part of its latest foray.

Russia’s crude exports hit a one-month high, driven by a surge in weekly flows that coincided with a sharp drop in refinery runs. The increase came before President Donald Trump’s threat of secondary tariffs on buyers of Russian oil if Moscow fails to make a swift peace with Ukraine.

Seaborne crude cargoes averaged 3.23 million barrels a day in the four weeks to July 13, up by 3% from the period to July 6, tanker-tracking data compiled by Bloomberg show. On this measure, flows reversed the previous week’s drop and rose to the highest since the period ending June 15 and are just above their year-to-date average.

Russian refineries processed a little over 5 million barrels a day of crude during the first nine days of July, down by about 300,000 from a month earlier, with several large plants undertaking seasonal maintenance. That’s likely to have freed up more crude for export. The country’s oil production is also edging higher as part of the OPEC+ group’s easing of output cuts. Volumes rose by about 40,000 barrels a day in June.

Air taxi startup Joby Aviation Inc. plans to double aircraft output capacity at its main production site in California, just weeks after completing its first piloted test flights.

The expansion will enable the Marina, California facility to build up to 24 aircraft per year, the company said in a statement Tuesday. It also said “equipment installation is underway” at a new site in Dayton, Ohio, for building and testing aircraft components for a pilot production line.

Earlier this year, the company said in a shareholder letter that it expected parts production to begin in Dayton from mid-2025, marking a delay from initial plans to start output at the site last year.

Joby said Tuesday that engineers from Toyota Motor Corp., which became its largest shareholder in May, are “deeply integrated” into operations in areas such as design, manufacturing and quality control.

UniCredit SpA is ramping up the use of significant risk transfers as it frees up more capital, with the bank a key player in a wave of industry consolidation.

Milan-based UniCredit is on track to issue SRTs tied to as much as €20 billion ($23 billion) of loans this year, said people with knowledge of the matter, who asked not to be named. That would represent an increase of about 30% compared to the bank’s loan portfolios tied to SRT deals last year, they said.

SRTs are a way for financial institutions to insure loans against default by selling credit-linked notes to investors. The transactions allow lenders to boost their solvency ratios and free up capital they’d otherwise use to meet regulatory requirements, increasing their leeway for new lending or acquisitions.

Treasuries were mostly steady after Tuesday’s mixed inflation report for June largely matched economists’ expectations and slightly raised bets on interest-rate cuts by the Federal Reserve.

Longer-term bonds outperformed, with yields on 10-year and 30-year bonds falling more than two basis points, while two-year yields rose about 1 basis point.

Interest-rate swaps showed traders saw a 62% chance of a quarter-point rate cut by September and priced in almost two reductions by year-end.

Chinese quantitative hedge funds are stepping up efforts to hire science and engineering students in the US affected by President Donald Trump’s university funding cuts and tighter visa policies.

Shanghai-based Mingshi Investment Management launched a special program last month to offer full-time jobs to students unable to finish their PhDs due to the recent US policy changes. The initiative also provides internships to graduates from Chinese universities whose overseas study plans may be scuppered, the company said.

Shanghai Goku Technologies, an AI-driven quant, said it will welcome “with open arms” any qualified students hurt by the policies. Another eastern China-based quant fund managing more than 10 billion yuan ($1.4 billion) has hired three AI researchers this year from overseas, including from the US.

US Treasury Secretary Scott Bessent suggested the deadline for a US-China tariff truce slated to end next month is flexible, saying that talks between the world’s largest economies are in a “very good place” ahead of an expected meeting in coming weeks.

“I tell market participants not to worry about Aug. 12,” Bessent said Tuesday on Bloomberg Television, referring to the end of a 90-day reprieve that was announced May 12.

Bessent, who has taken a leading role in Washington’s negotiations with China, said that he hopes to meet with his Chinese counterpart Vice Premier He Lifeng soon, possibly in a third country, either before or after the Chinese leadership hold a meeting early next month.

“We’re still working on it,” he said. “The Chinese leadership has a big conclave at the beginning of August. We’re trying to work out whether that could be in a third country either before or after that conclave.”

Consumer prices rose in June as President Donald Trump’s tariffs began to slowly work their way through the US economy.

The consumer price index, a broad-based measure of goods and services costs, increased 0.3% on the month, putting the 12-month inflation rate at 2.7%, the Bureau of Labour Statistics reported Tuesday. The numbers were right in line with the Dow Jones consensus.

Excluding volatile food and energy prices, core inflation picked up 0.2% on the month, with the annual rate moving to 2.9%, also matching the respective estimates.NewsLive TVMarketPopular CategoriesCalculatorsTrending NowLet's Connect with CNBCTV 18Network 18 Group :©TV18 Broadcast Limited. All rights reserved.