Morning Edition · Friday, August 7, 2026
Macro
US Payrolls Fall 23,000 in July, Fed Rate-Hike Bets Collapse as Gold and Silver Jump
The Bureau of Labor Statistics reported that labor force participation fell to its lowest level in more than five years, even as the unemployment rate eased to 4.1 percent, and futures markets cut the odds of a September Federal Reserve rate increase to below even.
Geopolitics
Saudi Arabia, Turkey, and Pakistan Sign Mutual-Defense Pact in Mecca
The Makkah Joint Defence Agreement unites a major oil exporter, a member of the North Atlantic Treaty Organization (NATO), and a nuclear-armed state under a clause that treats an attack on any signatory as an attack on all three. Israeli commentators read the pact as Saudi Arabia distancing itself from Washington's regional security guarantees.
Macro
Yen Gives Back Nearly Half of Its Gains From This Week's Joint US-Japan Intervention
The currency slid to roughly 158.45 per dollar before recovering to about 157.30 after a weak US jobs report cut the odds of a Federal Reserve rate increase, and officials in Tokyo and Washington are signaling they remain prepared to intervene again.
Geopolitics
Russia Reports Record Monthly Casualties as Zelenskyy Renews Long-Range Air Campaign
Ukraine's General Staff said Russian forces suffered roughly 43,000 casualties in July, even as Moscow's air force dropped what Kyiv called a record number of guided glide bombs, and the United Nations secretary general condemned both sides for the escalation.
Markets
Ukraine's Black Sea Grain Exports Halt Completely After Russian Strikes on Ports
Shipowners have stopped calling at Odesa, Chornomorsk, and Pivdennyi since July 22, and Kyiv's agriculture ministry estimates the sector could lose up to $3 billion this year, with more than 30 million tonnes of grain at risk of missing international markets.
Macro
Russia's Central Bank Cuts Gold Reserves for a Sixth Straight Month as World's Central Banks Keep Buying
Gold's share of Russia's international reserves fell to 41.5 percent from 43.6 percent, the sharpest monthly drop in 13 years, even as global central banks added roughly 41 tonnes of gold in May alone, according to figures cited by Russian financial media.
Markets
Rhine and Danube Hit Record Lows, Threatening European Shipping and Industry
Deutsche Welle reported that the Rhine's gauge at the Dutch border fell to its lowest level ever recorded, and Hungary shut down its only nuclear power plant for the first time in 44 years after the Danube fell too low to cool its reactors, as barges at the Kaub crossing run at roughly a fifth of normal cargo capacity.
Markets
Volkswagen's Controlling Families Demand Faster Overhaul to Counter Chinese Rivals
Porsche SE, the Porsche and Piëch family holding company that controls 53.3 percent of Volkswagen's voting rights, reported first-half adjusted profit fell 14.5 percent as Volkswagen confirmed it is weighing cuts of up to 100,000 jobs, roughly 15 percent of its global workforce, in what would be the largest restructuring in the company's 89-year history.
Tech
China's Cambricon Posts 108 Percent Revenue Surge as Beijing Pushes Domestic AI Chips
The chipmaker's first-half revenue reached roughly $890 million and profit jumped 122.6 percent, as Chinese firms accelerate the replacement of foreign artificial intelligence (AI) hardware with domestic alternatives.
Markets
US Pays Germany's RWE $1.22 Billion to Abandon Offshore Wind Leases
The Department of the Interior's fifth such settlement redirects RWE's money toward a Louisiana liquefied natural gas (LNG) project and gas turbines, bringing the government's total offshore wind buyout payments above $3.9 billion.
Geopolitics
Taiwan Runs Its Largest-Ever Air Raid Drills as China Pressure Mounts
The annual Han Kuang exercises, running through August 14, tested evacuation procedures and slowed mobile internet in parts of the island, while Chinese state media dismissed the drills as ineffective against the People's Liberation Army.
World
Spain Threatens Italy With 'Proportional Measures' Over Schengen Border Controls
Madrid wants Rome to lift the checks it imposed on arrivals from Spain by August 9, after Italy invoked Schengen's safety-valve provisions following a surge that Spain now says brought roughly 69,500 people into Ceuta, more than initial estimates, and left 72 dead on the Spanish side of the border. Madrid says nearly all of the migrants have since returned to Morocco.