Euro zone government bond yields climbed to their highest levels in nearly a month on Wednesday as a sharp jump in oil prices heightened inflation concerns and prompted investors to increase bets on further interest rate hikes by the European Central Bank, according to Reuters.

Germany’s benchmark 10-year government bond yield rose 5 basis points to 3.034%, marking its highest level since July 11. Bond yields move inversely to prices.

The move followed a sharp escalation in geopolitical tensions after the United States and Iran exchanged military strikes. According to Reuters, Iran’s Revolutionary Guards said they targeted U.S. military sites in Bahrain and Kuwait after Washington carried out strikes on Iran in response to attacks on tankers in the Strait of Hormuz. The U.S. also revoked a licence that had allowed Iran to export oil.

The renewed tensions sent energy prices sharply higher, with Brent crude rising around 3% to $76.50 per barrel, hovering near its highest level in two weeks.

Oil prices had retreated significantly in recent months after peaking at $126 per barrel in late April. Prices declined after the U.S. and Iran reached a framework agreement in mid-June to end their conflict, paving the way for further negotiations on sanctions and enabling energy shipments to resume through the Strait of Hormuz.

The rebound in crude prices revived concerns over inflation, leading traders to increase expectations for additional ECB tightening. Money markets were pricing in around 31 basis points of rate hikes by the end of the year, up from approximately 25 basis points a day earlier.
Germany’s two-year government bond yield, which is particularly sensitive to changes in ECB policy expectations, also climbed 5 basis points to 2.637%, its highest level since June 22.Analysts attributed the rise in bond yields to the surge in oil prices following the U.S. decision to revoke Iran’s oil export waiver. The increase in energy costs is expected to keep short-dated government bonds under pressure as investors bring forward expectations for another ECB rate increase later this year.

The latest market moves underscore how geopolitical developments and energy prices continue to influence inflation expectations and monetary policy outlooks across the euro zone.

---

China is promoting the yuan as a competitive alternative amid the rising strength of the US dollar. As the dollar reaches multi-decade highs, Chinese officials emphasize the yuan’s stability and resilience, encouraging greater international use. The Chinese government has taken steps to internationalize the yuan, including expanding its use in global trade and investments, aiming to lessen reliance on the dollar. This move aligns with China’s broader strategy to establish the yuan as a viable global currency.

China’s push to position the yuan as a “stable alternative” to the dollar comes at an ironic moment: the offshore yuan actually weakened to around 6.79 per dollar in June, reversing two months of gains, as a stronger dollar and softer PBoC fixings pressured the currency. Beijing’s pitch rests on trade settlement, the CIPS payment system, and the e-CNY digital currency, but yuan assets remain illiquid under capital controls, limiting genuine reserve-currency appeal.

For Thailand, the dollar still dominates baht movements, driving roughly 40-50% of the currency’s swings, while a stronger baht continues squeezing Thai export competitiveness against regional rivals like Vietnam. Yuan internationalization matters less for the exchange rate than for infrastructure: the Bank of Thailand is a founding participant in mBridge, the multi-central-bank digital currency platform where the digital yuan already accounts for roughly 95% of settlement volume, embedding Thailand institutionally in China’s alternative-payments architecture regardless of near-term currency moves.

Meanwhile, the US dollar’s strength is driven by robust economic data and Federal Reserve interest rate hikes. The dollar’s appreciation has impacted emerging markets and global trade, prompting countries to reassess their currency strategies. Despite these dynamics, China remains optimistic about the yuan’s potential to serve as an alternative reserve currency, bolstered by continued reforms and growing cross-border usage.

Overall, the contrasting currency strategies highlight the shifting landscape of global finance. China’s focus on strengthening the yuan aims to diversify and reduce dependence on the dollar, while the US maintains its dominance through monetary policy. The coming months will be critical in determining how these influences shape the international monetary system.

source

Other People are Reading

The pipeline of future Lionesses is under serious threat, with new research revealing that three quarters (76%) of female grassroots players expect to walk away from their team, or the sport altogether, within five years unless fresh funding is found.

The findings, published by Starling Bank as it launches the fifth year of its Kick On initiative, paint a bleak picture of the amateur women’s and girls’ game. Almost every coach surveyed (97%) said their club needs more money, with girls being turned away, missing matches and dipping into their own pockets simply to play.

It is a stark contrast to the professional game, where women’s football has become big business, attracting record broadcast deals and headline sponsorships. At grassroots level, however, the old inequalities persist: two fifths (40%) of female players say their team does not receive the same funding as male sides, while nine in ten coaches (90%) believe they could offer far more opportunities to girls if the money were there.

The research lays bare the personal cost of the shortfall. Girls and women have spent an average of £212 of their own, or their parents’, money over the past year on essentials such as kit and equipment (31%), transport to games and training (27%), and medical treatment or physio (21%).

Many are simply going without. A quarter (25%) have missed training or matches because their team could not afford access to a nearby pitch, and 23% have missed out because of a lack of kit or equipment. That attrition risks undoing the progress set out in the FA’s 2024-28 women’s and girls’ strategy, which followed a four-year period in which female participation grew by more than 50%.

The encouraging news for clubs is that Britain’s small business community appears ready to step up. Starling’s research found that three in five (62%) SME leaders would be interested in sponsoring a women’s or girls’ team, and most recognise the commercial upside: 61% say it would help them support their local community, 48% cite increased brand awareness and 44% point to an improved reputation.

The barrier, it seems, is perception rather than appetite. SMEs believe grassroots sponsorship costs 35% more than it actually does, estimating £1,144.50 against a real average of £845. For firms already weighing up ways to support their local community, a shirt sponsorship may be considerably more affordable than they assume.

To close that gap, Starling, one of the challenger banks that now dominate SME lending, will matchmake 2,000 business sponsors with grassroots teams in their area and subsidise the cost of kit sponsorship, with each sponsor’s name featuring on the front of the team’s shirts.

The campaign is fronted by Arsenal and England forward Alessia Russo MBE, alongside former Lioness Jill Scott MBE, whose Manchester coffee shop BOXX2BOXX will sponsor a local side.

“We have built so much momentum in the women’s game, but years of progress will quickly unravel if grassroots teams can’t access more financial support,” said Russo. “Sponsorship unlocks everything from kit, equipment and transport, to access to suitable pitches, something I experienced first-hand earlier in my career. Local businesses have the power to help young players reach their full potential, and potentially go pro!”

Scott added: “Times are tough for girls’ grassroots teams right now, as well as for SMEs. It’s amazing to hear how many small businesses want to sponsor the teams that desperately need it, and how many recognise the broader benefits of sponsorship too. With a career as a player and an entrepreneur, I’m proud to support Starling’s Kick On initiative again this year and I’m really looking forward to helping a team near me get some much-needed funds.”

Since 2023, Kick On has provided more than 15,000 sets of kit to female grassroots players, and Starling aims to double the running total to 32,000 sets this year. The wider stakes are clear: Sport England’s Active Lives research has consistently shown that girls remain less active than boys, and grassroots football is one of the most effective routes to closing that gap.

Ellie Cross, women’s football advocate at Starling Bank, said: “Our Kick On campaign has uncovered the issues that still remain in the women’s game, from body image issues and low self-esteem to unequal pitch access and a lack of female coach role models. We want to help clubs address their funding difficulties through partnerships with local businesses that will hopefully stand the test of time.”

For teams that miss out on kit this year, Starling has produced a free Sponsorship Guide and Sponsorship Proposal Template to help clubs secure backing themselves. UK amateur women’s and girls’ teams, and Starling business customers, can apply via the Kick On with Starling page before applications close at 11:59pm on 17 July 2026.

---

Tungsten West is looking to restart production at Hemerdon near Plymouth

A company looking to revive a mine in Devon that holds a rare critical metal says it is preparing to “ramp up” work at the site in the coming weeks. AIM-listed Tungsten West is working to restart production at the Hemerdon tungsten and tin mine near Plymouth – one of the largest tungsten resources in the world.

Tungsten West acquired the site through a receivership process in 2019 following the collapse of previous operator Wolf Minerals and is hoping to open the site for production in spring next year.

It is understood Hemerdon could produce up to 20 per cent of the global supply of primary tungsten outside of China once operational. Tungsten is used by many manufacturing companies, including in the automotive and defence sectors.

Ahead of the project commission, Tungsten West said on Wednesday it had started an “enhanced programme” of stakeholder engagement, including with the local community and regulators.

Jeff Court, chief executive of Tungsten West, said: “We are making rapid progress on the restart of Hemerdon with the first phase of recommissioning starting this month.

“This marks another significant milestone towards full project commissioning in Q1 2027, and I would like to thank the team, our partners, stakeholders and shareholders for the hard work that has been undertaken to date to reach this step.”

Tungsten West has already hired 100 people to work at Hemerdon and is targeting total recruitment of 350 by early 2027. The project is also expected to be completed within budget, the company added.

In February, Tungsten West raised more than £41m in a share sale, raising funds from new institutional investors and existing shareholders to finance the Devon project.

Mr Court said at the time the funds were the “cornerstone” for the restart of operations at Hemerdon.

“We are extremely pleased that the market has shown such strong support for the company”, he said. “We welcome new shareholders and the increased investment from our pre-existing shareholders, who both strongly believe in the vision we have for the company.”

SEOUL, South Korea — South Korea’s benchmark KOSPI index plunged again Wednesday, falling 409.52 points, or 5.35 percent, to 7,246.79, extending a punishing two-day rout that has now wiped out a significant portion of the index’s extraordinary gains from earlier this year, as investors continued dumping shares in chipmakers Samsung Electronics and SK Hynix.

Wednesday’s decline followed an even more dramatic session Tuesday, when the KOSPI plunged more than 8 percent intraday and triggered South Korea’s sixth circuit breaker of the year, halting trading for 20 minutes after the index fell below key psychological levels in rapid succession. Tuesday’s session ultimately closed down 4.91 percent, but the selling resumed almost immediately Wednesday, with the index opening sharply lower and continuing to slide through the afternoon session, according to Korean market data.

The renewed selloff has come despite, and in some ways because of, historically strong earnings results from Samsung Electronics, the country’s largest company and a dominant force within the KOSPI index. Samsung reported preliminary second-quarter operating profit of 89.4 trillion won, or approximately $58.6 billion, a nearly 19-fold increase from the same period last year and a figure that exceeded consensus analyst estimates. Rather than lifting the broader market, the announcement triggered what traders described as a classic “sell the news” reaction, with investors concluding that expectations for the AI-driven memory chip boom had already been fully priced into share values well before the results were formally announced.

Samsung Electronics and SK Hynix, which together account for roughly 53 percent of the KOSPI’s total market capitalization, bore the brunt of the selling pressure across both sessions. On Tuesday alone, Samsung shares fell as much as 9.75 percent while SK Hynix tumbled 10.58 percent, with foreign and institutional investors net-selling a combined total exceeding 3.5 trillion won, or roughly $2.3 billion, even as retail investors stepped in as net buyers in an unsuccessful attempt to defend the market against the broader wave of selling. SK Square and Samsung Electro-Mechanics posted even steeper declines, falling 13.11 percent and 11.82 percent respectively during Tuesday’s rout.

Analysts at Samsung Securities pointed to three primary factors behind the sharp pullback. The first was straightforward profit-taking following an extraordinary run in memory semiconductor stocks, with Samsung Electronics and SK Hynix shares having soared 177 percent and 305 percent respectively during the first half of 2026. The second factor centered on growing concern that memory semiconductor companies may have already reached peak profitability, with some investors betting that year-on-year earnings growth will slow in the second half of the year due to a high base-effect comparison against this year’s exceptionally strong results. The third and most significant factor, according to the firm’s analysis, involved broader doubts about the long-term sustainability of artificial intelligence infrastructure investment worldwide, with the delayed initial public offering of OpenAI and Meta Platforms’ expansion into cloud computing cited as additional negative signals weighing on sentiment toward AI-linked companies globally.

The scale of Tuesday’s volatility was reflected in South Korea’s fear gauge, the Kospi 200 Volatility Index, known as VKOSPI, which spiked to 85.88 during the session, a reading reflecting extreme investor anxiety. The tech-heavy KOSDAQ index also fell sharply, closing down 3.64 percent at 816.21, while South Korea’s won weakened against the U.S. dollar, settling at 1,524.20 won per dollar.

Tuesday’s circuit breaker marked the 12th such trading halt in South Korean market history and the first in seven trading sessions since a similar episode on June 26. According to the Korea Exchange, a Level 1 circuit breaker is triggered when the KOSPI falls at least 8 percent from the previous day’s close and remains at that level for one minute, automatically suspending trading in all stocks for 20 minutes to help cushion the market from severe shocks. A more severe Level 2 halt would be triggered by a 15 percent decline, while a full Level 3 shutdown of trading for the remainder of the day would require a 20 percent drop, thresholds Tuesday’s session did not reach.

The rout in South Korea has rippled across the broader Asia-Pacific region, contributing to declines in Japan’s Nikkei 225, which fell more than 2 percent Tuesday to 68,256.96, its steepest drop in weeks, as chip-related suppliers including Kioxia Holdings, SUMCO and Taiyo Yuden each fell more than 11 percent. Hong Kong’s Hang Seng Index and mainland China’s Shanghai Composite posted more modest declines of 0.51 percent and 1.26 percent respectively, suggesting the most acute selling pressure remained concentrated in markets with the heaviest direct exposure to memory chip and semiconductor equipment companies.

Despite the severity of the two-day selloff, some analysts have pushed back against the notion that the underlying memory semiconductor cycle has peaked. Samsung Securities said it does not believe the current AI investment cycle has run its course, forecasting that the market could demonstrate renewed resilience if major U.S. technology companies reaffirm their AI investment plans during upcoming earnings reports later this month. The firm noted that even after roughly 150 trillion won in net selling by foreign investors during the first half of 2026, the overall proportion of foreign ownership within the KOSPI has actually increased, from 36 percent at the start of the year to around 40 percent, suggesting continued underlying confidence in Korean equities among international investors despite the recent volatility.

The KOSPI’s dramatic swings this year have also been amplified by structural factors specific to the South Korean market. According to Finimize, margin borrowing in KOSPI shares stood at 29.7 trillion won as of the Friday before the selloff began, close to a late-June record, raising the risk that sharp declines could trigger cascading margin calls and forced selling, further amplified by daily-reset leveraged exchange-traded funds that mechanically sell more of the underlying stocks following steep down days.

Even accounting for this week’s sharp losses, the KOSPI remains up substantially for the year, having posted the strongest growth rate among major global stock indices during the first half of 2026, rising roughly 100 percent on the strength of robust memory semiconductor performance. Whether Wednesday’s continued decline represents a healthy correction within that broader rally, or the start of a more prolonged reassessment of AI-related valuations across the region’s technology sector, remains a central question for investors as they await further signals from upcoming earnings reports at major U.S. technology companies later this month.

Great Southern Fuel Supplies directors have purchased a 2.3 hectare BP fuel station in Port Hedland’s Wedgefield Industrial Precinct for $10.3 million. 

Allan and Faye McWhirter established the bulk fuel and lubricant distributor in Lake Grace 50 years ago. 

It now operates or supplies more than 85 of Western Australia’s rural BP retail outlets, as well as delivers to metropolitan retail sites and BP commercial accounts. 

HM Horizon Pty Ltd bought 1 Hematite Drive, Wedgefield from Acure Funds Management Ltd in May, according to RP Data.

HM Horizon is owned by the McWhirters, an Australian Securities and Investments Commission filing shows.

Allan, Faye, Steven McWhirter, and Dianne and Aaron Harvey are named as directors. 

Acure Funds Management’s directors are linked to Perth-based Acure Asset Management, including managing director Angelo Del Borrello, and non-executive directors Gianni Redolatti and Chris Allen. 

In 1976, the McWhirters stumbled into the fuel transportation industry through a house purchase that happened to have a fuel station attached to it.

Great Southern has grown to encompass major depots at Katanning, Narrogin, Albany, Corrigin, Koorda, Wongan Hills, Geraldton, Kalgoorlie, Kewdale, Moora, Merredin, Jerramungup, Carnamah and other regional locations.

Starting as a one-truck operation with a 166-litre drum, the company now drives majority Volvo trucks with the ability to hold 146,000 litres. 

With the founders in their 80s, they plan on passing their business down to Steven (or Steve) and Dianne.

The Forrestfield-based company employs around 250 staff. 

The country’s biggest student landlord has been cutting asking rents to fill its halls before September, a move that tells smaller landlords and property investors a good deal about where pricing power in Britain’s rental market now sits.

Unite Group, which operates some 200 student halls across the UK, said “targeted pricing initiatives” at a number of its buildings had delivered a “strong” couple of months of bookings.

The company now expects its buildings to be between 94 per cent and 96 per cent full when the new academic year begins, an upgrade on previous guidance that pointed towards the “lower end” of a 93 per cent to 96 per cent range.

The discounting has been concentrated in cities such as Leicester, Nottingham and Sheffield, where a wave of new development has swung the balance between supply and demand in students’ favour. According to Unite’s trading update published on Tuesday, 86 per cent of its beds are now reserved for the 2026/27 academic year, up from 85 per cent at the same point last year.

Fuller buildings have come at a cost, however. Unite had expected to push through rent increases of 2 to 3 per cent next year. Reflecting those “targeted adjustments to pricing in select markets”, its rental growth forecast has been pared back to between 1 per cent and 2 per cent.

The two effects broadly cancel each other out, leaving revenue and profit predictions unchanged. Income is set to grow by between 0 and 2 per cent, while adjusted earnings per share is still expected to fall to between 41.5p and 43p, compared with 47.5p last year.

Joe Lister, Unite Group chief executive, said: “We have seen strong progress in reservations for the 2026/27 academic year since our last update in May. This reflects our strong direct marketing and sales performance together with targeted adjustments to pricing in selected markets.”

Investors were unimpressed. Unite shares, already down 38 per cent over the past year, fell a further 2.7 per cent, or 14p, to 506p in early trading.

For the SME landlords and HMO operators who still house the majority of Britain’s students, the signal is hard to ignore. When the largest operator in the market is discounting to fill rooms in Leicester, Nottingham and Sheffield, smaller landlords in those cities are competing against a cheaper, newer product. Local supply, rather than national demand, is increasingly what sets the rent.

It is a dynamic already visible in the wider lettings market, where advertised rents outside London have slipped for the first time since 2019 as more properties come to market and tenant demand cools.

Regulation is adding to the squeeze. The Renters’ Rights Act, which came into force on 1 May, allowed students on existing tenancies to leave with two months’ notice under transitional arrangements, a change Unite says has seen some students exit their contracts early. For private landlords, the legislation is rewriting the business case for buy-to-let altogether.

Unite’s response is to concentrate its firepower where demand is most reliable. The group is targeting £300 million to £400 million of disposals this year as it repositions its portfolio towards the strongest universities, building on partnerships such as its £250 million joint venture with Newcastle University.

For smaller operators without that luxury, the lesson from the market leader is a sobering one: in 2026, even the biggest landlord in the country cannot raise rents where the cranes have been busy.

---