Judge Denies Request Seeking to Make Fed's FOMC Rate Meeting Public This Week

Central Bank

Political

Summary:

The FOMC is comprised of Fed governors, who are appointed by the president, and regional Fed presidents, who are appointed by banks in their respective districts.

The Federal Reserve won a legal victory Monday when a federal judge denied a request for a temporary restraining order compelling the central bank's Federal Open Market Committee (FOMC) to open its rate deliberations to the public starting Tuesday and Wednesday.

The request came as part of a lawsuit filed by money manager Azoria Capital against FOMC Chair Jerome Powell and other central bank policymakers in a Washington, D.C., federal court.

The lawsuit alleged the Fed was violating a 1976 federal law by keeping its monetary policy meetings behind closed doors.

Azoria Capital is led by CEO James Fishback, who is close to the Trump administration and served as an adviser to the Department of Government Efficiency (DOGE).

It argued that the Fed, by keeping its meetings closed to the public, was in violation of the Government in the Sunshine Act of 1976, passed after President Richard Nixon's Watergate scandal roiled Washington and led to calls for increased transparency in the US government.

The act requires federal agencies to keep their meetings open to the public.

But a federal judge in Washington, D.C., Beryl Howell, ruled that the Sunshine Act does not apply to the FOMC because the FOMC is not an agency and is instead a "composite of several parts."

The FOMC is comprised of Fed governors, who are appointed by the president, and regional Fed presidents, who are appointed by banks in their respective districts.

Fishback, Azoria's CEO, noted in a statement after the hearing that the judge did not dismiss its entire case, "meaning Azoria’s case for transparency and accountability from the Federal Reserve will proceed."

"Azoria looks forward to continuing our case and fighting for transparency and accountability for all Americans."

The lawsuit filed last week was one of several headaches for the Fed as the White House continues to pressure the central bank, highlighted by an unusual presidential visit to the central bank for a tour of the $2.5 billion refurbishment of its National Mall buildings.

Trump and other administration officials have criticized the project for its cost overruns.

Trump and other top White House officials have also been hammering Powell for months over his wait-and-see rate stance and his insistence that more time is needed to assess how the president's tariffs will affect the path of inflation.

Traders widely expect the Fed’s Federal Open Market Committee to defy Trump and once again keep rates unchanged this Wednesday as the FOMC has for every other meeting so far in 2025. The market expects the first cut of 2025 to happen on Sept. 17, the third-to-last meeting of the year.

Source: Yahoo Finance

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Manuel

Economic

Stocks

Wall Street kicked off a pivotal week with the dollar climbing the most since May as a tariff deal between President Donald Trump and the European Union bolstered hopes for an extension of a China trade truce. Stocks held at record highs. Bonds edged lower.

The start of a week that will set the tone for the rest of the year in markets saw a dollar gauge up almost 1%, extending its July rally. The euro slid the most in over two months. The S&P 500 was little changed after briefly topping 6,400. Treasuries barely budged amid mixed results from US sales. Oil rose as Trump said he’d shorten his timeline for Russia to reach a truce with Ukraine.

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Stocks Hold at Record, Dollar Jumps on Trade Hopes: Markets Wrap_1

In the run-up to the Aug. 1 US tariff deadline, traders will go through a raft of key data from jobs to inflation and economic activity. The big event comes Wednesday, when the Federal Reserve is expected to keep rates unchanged. Then there’s a string of big-tech earnings, with four megacaps worth a combined $11.3 trillion reporting results.

“This is about as busy as a week can get in the markets,” said Chris Larkin at E*Trade from Morgan Stanley. “This week could make or break that momentum in the near term.”

US and Chinese officials finished the first of two days of talks aimed at extending their tariff truce beyond a mid-August deadline and hashing out ways to maintain trade ties while safeguarding economic security. Canada Prime Minister Mark Carney said his government is still deep in trade talks with the Trump administration.

The Treasury jacked up its estimate for federal borrowing for the current quarter to $1 trillion, mainly due to distortions from the debt limit. On Wednesday, the department will announce its plans for note and bond sales over coming months — which dealers widely see as staying unchanged.

Speaking in Scotland on Sunday to announce the EU deal, Trump gave a brief update on Washington’s relations with Beijing. “We’re very close to a deal with China. We really sort of made a deal with China, but we’ll see how that goes,” he said without elaborating. Stocks Hold at Record, Dollar Jumps on Trade Hopes: Markets Wrap_2

Stocks Hold at Record, Dollar Jumps on Trade Hopes: Markets Wrap_2

“It is possible that as more trade deals are announced, the level of uncertainty that has hovered over business and the economy will ease,” said Brent Schutte at Northwestern Mutual Wealth Management Co. “Additionally, the impact of final trade deals could be less than originally forecast after the April 2 announcement of reciprocal tariffs.”

To Thierry Wizman at Macquarie Group, while the dollar’s strength today may reflect the perception that the new EU deal is lopsided in favor of the US, it may also reflect a feeling that America is reengaging with its major allies.

“Whether we agree or not with the use of tariffs and the deals announced, we are getting the big ones out of the way which will allow American businesses to adjust and plan, for better or worse,” said Peter Boockvar at the Boock Report. “And we can now focus on how this all plays out.”

Fed Chair Jerome Powell and his colleagues will step into the central bank’s board room on Tuesday to deliberate on rates at a time of immense political pressure, evolving trade policy, and economic cross-currents.

In a rare occurrence, policymakers will convene in the same week that the government issues reports on gross domestic product, employment and the Fed’s preferred price metrics. Forecasters anticipate the heavy dose of data will show economic activity rebounded in the second quarter.

While the stock market is moving sideways after a solid run, “if we get no surprises in earnings and some dovish comments by the Fed, it’s likely we’ll see yet more new highs by the end of the week,” said Louis Navellier, chief investment officer at Navellier & Associates.

“We do not expect the Federal Reserve to cut interest rates on Wednesday, but it’s possible that they make a stronger signal that cuts are on the horizon in the fall, especially as the inflation data continues to stay muted even in this tariff environment,” said Rick Gardner at RGA Investments.

Gardner also says that while stock market valuations are high, that in and of itself is not a reason why valuations can’t expand even further from here.

In fact, this earnings season is off to a solid start, and all eyes will be on results from Microsoft Corp. and Meta Platforms Inc. on Wednesday, and Apple Inc. and Amazon.com Inc. on Thursday.

So far, Corporate America appears to be taking tariffs in stride. With about a third of S&P 500 firms having reported, roughly 82% have beaten profit forecasts, on track for the best quarter in about four years, data compiled by Bloomberg Intelligence show.

Progress in trade negotiations will take the S&P 500 to a third consecutive year of 20% gains, according to Oppenheimer Asset Management’s John Stoltzfus, a feat unseen since the late 1990s. He raised his year-end target for the US benchmark to 7,100.

Some market forecasters including Morgan Stanley’s Michael Wilson have turned more optimistic about the S&P 500 as they expect earnings to remain upbeat.

The technical evidence suggests a broadening of participation in equities off the April low, according to Craig Johnson at Piper Sandler.

“Despite a slight easing in momentum as investors await earnings, the combination of several major indices at all-time highs and improving market breadth continues to draw investors off the sidelines, offering opportunities to buy the dip,” he said.

At RBC Capital Markets, Lori Calvasina says it would be premature to write off the impact of tariffs on inflation and corporate earnings.

“It also poses a risk to the path of stock prices if company outlooks for 2026 don’t end up being as rosy as investors have been anticipating,” she noted.

The S&P 500 is trading around 22.5 times projected earnings, compared to a 10-year average of 18.6. That’s sparked concerns that there may be little room for error.

The stock market’s stunning rebound and resilience have again emboldened equity investors, who have developed muscle memory around ‘buying the dip’,” according to Lisa Shalett at Morgan Stanley Wealth Management.

“With volatility having decoupled from stress indicators, passive indexes have ground to new highs, while the most speculative corners of the market have begun to lead,” she said. “Complacency is elevated, and valuations are rich. In this environment, we want to be stock-pickers.”

To Mark Hackett at Nationwide, this may be the most compelling intersection of technical momentum and fundamental strength we’ve seen in a long time.

“The S&P hasn’t had a 1% move in over a month and yet bears have capitulated,” he said. “No one’s willing to short this market, and even typically skeptical investors are getting pulled in. While it’s not a blow-off top yet, the odds of that happening are rising.” Stocks Hold at Record, Dollar Jumps on Trade Hopes: Markets Wrap_3

Stocks Hold at Record, Dollar Jumps on Trade Hopes: Markets Wrap_3

If sentiment keeps shifting and dip buyers remain aggressive, we could see a classic melt-up – and any near-term weakness over the next several weeks is likely to be bought aggressively, he said.

“However, for now, bears are hibernating through the summer,” Hackett concluded.

“We would lean toward being more bullish than bearish on US stocks through year-end, but not outside of a balanced portfolio based on risk,” said Anthony Saglimbene at Ameriprise. “However, that view is contingent on positive corporate profitability and economic growth this year, avoiding worst-case tariff scenarios, and investors remaining willing to ‘buy the dip’.”

Markets have found reassurance in several developments, according to Invesco Global Market Strategy Office.

“For one, the worst fears that manifested around trade in early April haven’t materialized, and key trade agreements are being signed,” the strategists said. “Tariff rates remain vastly elevated compared to last year, but they appear manageable. In our view, it’s likely that the cost can be shared between businesses and consumers without a meaningful impact on growth or inflation.”

Invesco strategists also noted that what should really matter for stocks in the medium and long-term is earnings.

“After a strong market rally, investors should prepare for renewed volatility in the near term,” said Mark Haefele at UBS Global Wealth Management. “Potential market dips could offer an opportunity for investors to build long-term exposure to stocks.”

Source: Bloomberg

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Manuel

Commodity

Political

Oil rose after US President Donald Trump said he would move up the deadline for Russia to agree to a truce in Ukraine, reigniting concerns that tensions between Moscow and the West will threaten flows of crude supplies.

West Texas Intermediate climbed by 2.4% to settle at the highest in a week while Brent climbed above $70 a barrel to end the session at the highest level in more than two weeks.

Trump said he would impose a new deadline of 10-12 days for Russian leader Vladimir Putin to reach a truce with Ukraine, after previously threatening Moscow with 100% “secondary tariffs” to create pressure toward a peace deal.

“Until now, traders had largely discounted the likelihood of meaningful follow-through on sanctions, but today’s headlines are prompting a reassessment of potential supply disruptions or increased shipping costs from rerouted trade flows,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Group.

The US president’s actions follow a latest round of sanctions by the European Union against Russia, including a lower price cap on the country’s crude and the import of refined products made from Moscow’s oil in third countries. The restrictions won’t come into effect until January, however, a hardening of Trump’s tone on Russia has traders bracing for the prospect of a sooner-than-expected tightening of the European diesel market and rerouted Russian flows.

“If enforced, oil markets cannot ignore the impact of triple-digit tariffs on Russian oil, given the significant scale of Russian exports and limited OPEC spare capacity, potentially leading to a supply shock,” JPMorgan analysts wrote in a note dated July 15.

The move higher in oil prices added to an earlier rally after Trump said the European Union had agreed to buy $750 billion in American energy products.

Trump’s trade policies and threats of retaliation from targeted countries for months have raised concerns about the outlook for energy demand should global economic growth slow, while a decision by OPEC+ to rapidly increase output has put the market on track for oversupply later this year.

A meeting between the OPEC+ committee on Monday concluded with no recommendations on output policy, while the group once again urged members to adhere to oil quotas. Traders and analysts expect the group to hike its quota again.

US and Chinese officials finished the first of two days of trade talks, with neither side speaking to reporters before departing. Earlier, the South China Morning Post reported that the two countries are expected to extend their tariff truce, according to people it didn’t identify.

Source: Bloomberg

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Manuel

Cryptocurrency

Tron Inc. has filed to raise up to $1 billion as part of an ambitious push to grow its TRX token reserves, capitalizing on a dramatic surge in its stock following a recent merger.

The company, formerly known as SRM Entertainment, disclosed the fundraising plans in a Form S-3 registration statement with the U.S. Securities and Exchange Commission.

The proposed raise would come through a combination of equity and debt instruments, including common shares, preferred stock, warrants, and other securities.

Tron Inc.was born after SRM Entertainment merged last month with Justin Sun’s blockchain project and rebranded, shifting its focus toward building a digital asset treasury anchored by the Tron blockchain’s native token, TRX.

The company has already accumulated over 365 million TRX tokens and aims to increase its holdings significantly using proceeds from the new offering.

“We view our TRX tokens holdings as long-term holdings and expect to continue to accumulate TRX tokens,” the company stated in the filing, which also described a broader treasury strategy that includes cash and short-term equivalents.

Shares of Tron Inc. jumped more than 23% Monday, trading above $11.80, a sharp rise from penny stock levels before the merger. The stock has rallied over 1,300% since June 10, lifting the firm’s market capitalization above $200 million.

Tron Inc.’s move reflects a broader trend among public companies adopting crypto-focused treasury strategies. While most have centered on Bitcoin (BTC), a growing number are exploring altcoins.

Recent examples include Japan-based Metaplanet, which added 780 BTC to its balance sheet last week, and U.K.-based Satsuma Technologies, which raised $135 million for a similar initiative.

In Canada, Bitcoin Treasury Corporation is preparing to relist on the Toronto Stock Exchange after securing $92 million in funding.

Outside of Bitcoin, other digital assets are also gaining traction. A new fund led by former executives of Coral Capital Holdings has reportedly raised $100 million to build a treasury position in BNB, while SharpLink Gaming has become one of the largest Ethereum (ETH) holders.

With its aggressive pivot to TRX and a billion-dollar capital plan in motion, Tron Inc. is positioning itself as one of the few public companies pursuing a corporate treasury strategy focused on an altcoin rather than Bitcoin.

Source: Cryptoslate

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Manuel

China–U.S. Trade War

Economic

President Trump and European Commission President Ursula von der Leyen announced Sunday that the US and EU had agreed to the framework of a trade deal that included a baseline tariff rate of 15% on EU goods imported into the US.

Trump, called the deal “the biggest of them all,” while von der Leyen said that "15% is not to be underestimated, but it is the best we could get." EU reaction to the agreement was decidedly mixed, with Germany and France offering perhaps the strongest criticism.

"I am not satisfied with this result in the sense of: 'This is good.' But I do say that, given the starting point we had with the United States, more simply wasn’t achievable," German Chancellor Friedrich Merz said. French Prime Minister Francois Bayrou called the EU's "submission" a "dark day" for the bloc.

Trump also confirmed on Monday that 15% represents the new standard for tariff negotiations.

“For the world, I would say it’ll be somewhere in the 15% to 20% range,” Trump said in Scotland as he met with UK Prime Minister Keir Starmer.

Meanwhile, another round of US-China talks kicked off on Monday, with markets hoping for another extension of the countries' trade truce. The South China Morning Post, a Hong Kong-based English-language newspaper, reported that is seen as the likely outcome.

Last week, Trump said that letters dictating tariff rates for over 200 countries would go out soon while his administration works to clinch deals with larger trade partners. Trump said the US hasn't had a "lot of luck" with Canada and suggested he may impose threatened 35% levies on goods not covered by the US-Canada-Mexico trade agreement.

Trump also touted a deal with Japan that included a $550 billion investment in the US and a 15% tariff on goods imported into the US from Japan. On Saturday, Japanese trade negotiator Ryosei Akazawa suggested the money could be used to help finance an unnamed Taiwanese chipmaker building plants in the US.

"For example, if a Taiwanese chipmaker builds a plant in the US and uses Japanese components or tailors its products to meet Japanese needs, that's fine too," he said.

In March, Taiwan's TSMC announced a $100 billion investment in the US, on top of plans to build three plants in Arizona, one of which is already operating.

Source: Yahoo Finance

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Adam

Economic

The state of President Donald Trump’s economy is about to come into full view.

A slew of crucial economic data is set for release this week, including the jobs report, inflation, consumer confidence and corporate earnings. We’ll get the first glimpse at America’s second-quarter gross domestic product, the broadest measure of the economy. And, most crucially, the Federal Reserve will decide whether to cut rates or hold steady one more time.

As if that weren’t enough, Trump’s trade polices also come due: Friday is the administration’s self-imposed deadline for settling tariff rates for all 200+ US trading partners. Trump’s top economic advisers will be negotiating a trade framework with China in Sweden. And an appeals court will hear arguments this week about whether the bulk of Trump’s tariffs are even legal, to begin with.

Altogether, the data could paint a picture of an economy that is resilient — but slowing under the weight of Trump’s dizzying tariff changes, reductions in government workers and spending, and an aggressive deportation of foreign-born workers.

Here’s a look at what to expect this week and why the data matters:

Corporate earnings

Some of the biggest names in tech are set to release earnings this week, including Microsoft, Meta, Amazon and Apple. That will set the tone for market sentiment.

Tech stocks have fueled record market growth in recent months as investors focus on gearing up for AI expansion. So far, around 80% of S&P 500 companies reporting earnings this season have beaten estimates, according to FactSet.

Overall, stocks have marched higher into record territory recently, supported by cautious optimism in trade deals and better-than-expected economic data. That has emboldened Trump to push harder on his trade deals, telling NBC News earlier this month that markets hit new highs because “tariffs have been very well received.”

Why it matters: Strong earnings could continue to boost the stock market, which is starting to look a bit expensive for some investors. That could also convince Trump that the market — which turned on him in April — has acquiesced to his plan for higher tariffs.

Consumer confidence and sentiment

Two separate reads on the way Americans are feeling about the economy are set to be released this week.

Consumer confidence, as measured by Conference Board, sank to the lowest level since the pandemic when Trump slapped massive tariffs on major trading partners. Shoppers expressed concern about the negative impact on the economy and prices. But consumers are generally more optimistic now that trade deals are beginning to emerge.

The consumer sentiment survey from the University of Michigan continues to show that shoppers are wary of inflation levels rising again, after the economy batted down historic price increases following the pandemic. Although sentiment has rallied back from near-record lows earlier this year, it remains depressed because of Trump’s trade policy.

Why it matters: Economists pay close attention to consumers’ optimism, since their spending powers two-thirds of the economy — and when shoppers think prices are about to rise, they tend to pull back. The latest retail sales data shows that consumers are spending cautiously.

Second-quarter GDP

GDP is a key indicator of economic success and, arguably, a validation of Trump’s policies. But this quarterly assessment has slumped in recent months, even shrinking in the first quarter of the year for the first time since 2022.

Economists expect an improvement for the April-June quarter as imports rebalance after companies raced to front-load their purchases ahead of Trump’s tariffs. They warn that, just as an inventory spike may have artificially hurt GDP in the first quarter, companies working through their warehoused goods in the second quarter may make the economy look better than it actually is.

Why it matters: The US economy is large and resilient, and it has continued to support hundreds of thousands new jobs each month for years. But if Americans are getting cold feet, things could take a turn for the worse.

Fed decision

Trump has repeatedly — and publicly — berated Fed Chair Jerome Powell for not lowering the bank’s interest rate (their recent détente notwithstanding), but the central bank is overwhelmingly expected to hold rates steady Wednesday at the conclusion of its two-day monetary policy meeting.

In an unusual kink, two governors are expected to vote against the consensus of the board, which hasn’t happened in three decades. With the job market still relatively strong, most Fed officials have said the economy can withstand higher rates for the time being. Meanwhile, they want to wait to see how Trump’s policies of high tariffs and deportation of foreign workers impact inflation and the labor market.

Why it matters: The bank is widely expected to start cutting its key overnight lending rate in September — a good sign for Americans hoping to borrow money, and especially for first-time homebuyers, who have been effectively locked out of the market with mortgage rates close to 7%.

Inflation

The Fed’s favorite inflation gauge, the Personal Consumption Expenditures index, has been creeping higher — moving further away from its 2% goal in recent months. That’s just one factor behind the central bank’s position on rate cuts.

Why it matters: Shoppers have been pulling forward purchases, including back-to-school items, to mitigate expected higher prices, but the July data will likely still bear the fingerprints of Trump’s tumultuous trade policy: Items like furniture and toys are starting to reflect elevated costs as pre-tariff inventory is depleted.

Trade deadline

Trump’s pause on the hefty and unpopular tariffs he rolled out in April expires on August 1. In the intervening period, the White House has scrambled to make deals with a slew of partners, announcing preliminary arrangements with the UK, China, Vietnam, Indonesia, the Philippines and Japan. And on Sunday, Trump announced a framework for an EU deal.

As the final deadline approaches, Trump said Friday he would be sending out letters to roughly 200 countries this week unilaterally setting a range of tariff rates. “It’s basically going to say, you’re going to pay 10%, you’re going to pay 15%, you’re going to pay maybe less, I don’t know,” Trump told reporters before he left for a trip to Scotland.

US markets are “very, very fixated” on the levels that are set, and an effective tariff rate beyond 20% on major trading partners could trigger a downturn on Wall Street, one analyst told CNN.

Why it matters: Trump’s tariffs that are currently in effect have raised the effective US tariff rate — the average tax that US importers pay on foreign goods — from around 2% to 18%, the highest since 1934, economists at Yale’s Budget Lab said in a recent report. That works out to $2,400 a year in added costs for the average American household. The US economy and markets have been able to withstand that so far. A considerably higher tariff rate could put that to the test.

Trade negotiations

Talks with China are ongoing, however. Treasury Secretary Scott Bessent is set to meet Monday and Tuesday with Chinese officials to iron out the details of the framework the two countries agreed upon at their London and Geneva meetings.

Trump in April slapped a 145% tariff on imports from China, prompting Beijing to respond with a 125% tariff on imports from the United States. That effectively created a total embargo between the world’s two largest economies before they agreed on a pause until August 12.

Meanwhile, on Thursday, the US Court of Appeals will hear oral arguments about whether Trump can use his emergency powers to levy tariffs after a lower court ruled he had exceeded his authority in doing so.

Why it matters: One of the Trump administration’s goals is to shift China towards a more consumer-driven domestic economy, thereby reducing global oversupply of its manufactured goods. While it’s unlikely that the United States will dramatically reshape Chinese President Xi Jinping’s economic policy, small changes could open some of China’s market to US manufacturers, while helping to increase American factory jobs.

Jobs report

Trump has promised a “Made in America” revival, but the July jobs report is expected to show that average monthly employment gains have dropped to a level not seen since 2010 (excluding the pandemic-era losses).

The labor force has shrunk in recent months, a potential indication of how anti-immigrant rhetoric and mass deportations are weighing on employment.

In addition, the most recent report showed that the manufacturing sector lost jobs for the second-straight month — a murky development for one of Trump’s benchmark economic priorities.

Why it matters: America’s labor market has been its strong suit for years, routinely defying expectations since the pandemic. But it’s showing cracks. Americans who lose their job are now staying unemployed for longer as businesses stall on making decisions, including hiring, as the trade war continues to raise costs.

Source: cnn

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Owen Li

Political

Cambodia and Thailand agreed to an "immediate and unconditional ceasefire" from midnight (1700 GMT) on Monday, to try to halt their deadliest conflict in more than a decade after five days of fighting that displaced more than 300,000 people.

Following efforts by Malaysia, chair of the ASEAN regional bloc, the United States and China to bring both sides to the table, the two countries' leaders agreed to end hostilities, resume direct communications and create a mechanism to implement the ceasefire.

"This is a vital first step towards de-escalation and the restoration of peace and security," Malaysian Prime Minister Anwar Ibrahim told a news conference, flanked by the Thai and Cambodian leaders, following more than two hours of negotiations at his residence in Putrajaya.

The truce talks followed a sustained effort by Anwar and U.S. President Donald Trump's phone calls to both leaders at the weekend, where he said he would not conclude trade deals with them if fighting continued. Both sides face a tariff of 36% on their goods in the U.S., their biggest export market.

Trump in a post on Truth Social on Monday congratulated all parties and said he spoken to the leaders of Thailand and Cambodia and instructed his trade team to restart negotiations.

"By ending this War, we have saved thousands of lives ... I have now ended many Wars in just six months — I am proud to be the President of PEACE!," Trump said.

DECADES OF DISPUTES

The Southeast Asian neighbours have wrangled for decades over border territory and have been on a conflict footing since the killing of a Cambodian soldier in a skirmish late in May, which led to a troop buildup on both sides. A full-blown diplomatic crisis ensued that brought Thailand's fragile coalition government to the brink of collapse.

They accuse each other of starting the fighting last week that escalated quickly from small arms fire to the use of heavy artillery and rockets at multiple points along their 800-km (500-mile) land border. Thailand unexpectedly sent an F-16 fighter jet to carry out airstrikes hours after the conflict erupted.

At least 38 people have been killed in the fighting, mostly civilians.

Thai acting Prime Minister Phumtham Wechayacha praised Trump for pushing the peace effort and said trade negotiations would start from a good place.

"I thanked him from my heart for what we received from him and helped our country move beyond this crisis," he told reporters on his return from Malaysia after speaking to Trump.

"After today the situation should de-escalate."

Item 1 of 6 Malaysia's Prime Minister Anwar Ibrahim looks on as Cambodia's Prime Minister Hun Manet and Thailand's acting Prime Minister Phumtham Wechayachai take part in mediation talks on the Thailand–Cambodia border conflict, in Putrajaya, Malaysia July 28, 2025. Mohd Rasfan/Pool via REUTERS

[1/6]Malaysia's Prime Minister Anwar Ibrahim looks on as Cambodia's Prime Minister Hun Manet and Thailand's acting Prime Minister Phumtham Wechayachai take part in mediation talks on the Thailand–Cambodia border conflict, in Putrajaya, Malaysia July 28, 2025. Mohd Rasfan/Pool via REUTERS Purchase Licensing Rights, opens new tab

The simmering tensions boiled over last week after Thailand recalled its ambassador to Phnom Penh and expelled Cambodia's envoy, in response to a second Thai soldier losing a limb to a landmine that Bangkok alleged Cambodian troops had laid.

Cambodia has strongly denied the charge, as well as Thai accusations that it has fired at civilian targets including schools and hospitals. It had accused Thailand of "unprovoked and premeditated military aggression".

'DECISIVE MEDIATION'

Cambodian Prime Minister Hun Manet said his Thai counterpart had played a positive role and he deeply appreciated Trump's "decisive mediation" and China's constructive participation.

"We agreed that the fighting will stop immediately," he said, adding both sides could rebuild trust and confidence.

U.S. Secretary of State Marco Rubio in a statement said he and Trump expected all sides to "fully honour their commitments to end this conflict".

This map shows the locations where military clashes have occurred along the disputed border between Thailand and Cambodia.

The fighting has scarred border communities on both sides.

In Thailand's Sisaket province, a house was reduced to splintered wood and twisted beams after it was struck by artillery fire from Cambodia. The roof had caved in, windows hung by the frame and power lines drooped over the structure.

Amid the din of occasional artillery fire, homes and shops remained shut and a four-lane road was deserted except for a few cars and military vehicles.

Dozens of displaced residents lined up quietly for their evening meal at an evacuation centre about 40 km away from the frontlines. A few children played with dogs, others swept the dusty floor.

Fifty-four-year-old Nong Ngarmsri just wanted to go back to her village.

"I want to go to my children who stayed back," she said. "I want them to cease firing so that I can go home."