XRP Hits New All-time High After 7 Years As Market Cap Crosses $210B

Cryptocurrency

Summary:

XRP has surged to a new all-time high, breaking a seven-year record as momentum builds across the altcoin market. On Friday, July 18, the token reached a new record high of $3.64, above its previous high of $3.40, set in January 2018. According to crypto.news price tracker, XRP is trading at $3.59 as of press time, up 18% in the last day and 40% in the last week.

Following the latest surge, XRP’s market value has risen to $212 billion, making it the third-largest cryptocurrency by market capitalization, outpacing Tether (USDT). Its market capitalization has increased by 65% in the last month alone as investor interest in the token grows.

There has also been a notable increase in trading activity. The spot trading volume of XRP increased by 135.5% over the last day to $19.05 billion. Derivatives markets followed suit.

Futures trading volume surged 162.6% to $46.65 billion and open interest has risen 27% to $11.11 billion, according to Coinglass data. The rise in derivatives activity points to growing speculation and increased positioning among traders.

Several factors appear to be fueling XRP’s rise. One major driver is Ripple’s recent push into regulated finance. Ripple and Circle (USDC) applied for a U.S. National Trust Bank charter at the beginning of July. If accepted, the move would bring Ripple under federal oversight and position it closer to the U.S. financial system.

At the same time, Ripple is preparing its stablecoin RLUSD for broader use, in line with emerging U.S. regulation. Momentum picked up sharply after the House passed the GENIUS Act on July 17, a bill that sets clear rules for stablecoin issuance. The legislation mandates full reserve backing, regular audits, and licensing requirements, criteria that Ripple has already moved to meet with RLUSD.

The company is seeking a Fed master account and has appointed BNY Mellon as the custodian of its reserves. With the GENIUS Act likely to become law, RLUSD could gain an early advantage in the compliant stablecoin sector, further increasing demand for XRP.

Institutional interest in XRP has also been rising. In a new stage of institutional adoption, VivoPower International and Webus have announced plans to purchase a total of $421 million worth of XRP for their corporate treasuries. These developments have strengthened investor confidence and contributed to the latest price surge.

Ongoing developments in Ripple’s legal battle with the U.S. Securities and Exchange Commission are supporting bullish sentiment. Both Ripple and the SEC have expressed interest in withdrawing their appeals, suggesting that a full settlement is on the horizon.

Another potential catalyst that market watchers are closely monitoring is the possibility of U.S.-listed XRP exchange-traded funds. Similar to how spot Bitcoin (BTC) and Ethereum (ETH) ETFs have enabled institutional inflows, an XRP ETF may draw capital from wealth managers, retirement funds, and financial advisors if regulatory barriers continue to drop.

Source: CryptoSlate

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Economic

China–U.S. Trade War

A Strategic Shift Toward Deregulation and Infrastructure Expansion

In a bid to reposition the U.S. as a global AI leader, the Trump administration is finalizing its long-anticipated AI Action Plan, set to be unveiled on July 23. The blueprint includes a series of executive orders aimed at scaling back regulatory burdens, accelerating AI deployment, and enabling wider energy access to support power-hungry data centers.

The plan will focus heavily on executive branch actions rather than proposing sweeping federal legislative reforms, suggesting a pragmatic near-term strategy. According to insiders, the White House aims to streamline environmental permitting through amendments to the National Environmental Policy Act (NEPA), although it is not expected to address grid modernization directly.

This effort aligns with the administration’s pro-growth industrial policy, especially in sectors where AI intersects with national competitiveness, defense, and energy. Analysts view the initiative as a deliberate move to shift the AI narrative from regulatory restraint to economic acceleration.

Industry Backing Reflects Demand for Predictability and Flexibility

The expected deregulatory thrust has received widespread support from industry leaders, particularly Meta, Google, and OpenAI, who have criticized prior policy approaches under President Biden as overly cautious and fragmented. These firms have called for a lighter federal touch that balances innovation with responsible oversight especially in contrast to a growing patchwork of state-level AI regulations.

The Trump administration's plan would include a request for Congress to consider preemption powers, essentially asking for federal authority to override or harmonize inconsistent state laws. Although a recent attempt to codify such a provision into a federal tax bill failed in the Senate, the issue remains a top priority for tech stakeholders seeking legal clarity and operational consistency.

Promoting U.S. AI Abroad Through Development Finance and Export Strategy

Another key pillar of the plan involves expanding the global reach of American AI technologies. An executive order is expected to direct the U.S. International Development Finance Corporation (DFC) and the Export-Import Bank to support the overseas deployment of American AI infrastructure, especially in developing countries that lack domestic capacity.

This initiative represents a significant policy turn for historically conservative critics of the Export-Import Bank, rebranding it as a tool for digital diplomacy. By financing AI-related exports, the administration seeks to challenge China’s growing influence in international digital infrastructure while promoting American technical standards.

The push for global adoption also includes a focus on establishing international norms and partnerships. While the plan avoids committing to any new multilateral treaties, it supports cooperation on AI safety, third-party risk evaluation, and safeguards against the misuse of U.S.-developed AI tools by hostile foreign actors.

Language Model Neutrality Emerges as Political Flashpoint

One of the most controversial elements of the upcoming orders is a directive that all large language models used by the federal government must be “neutral and not biased.” Drafted under the guidance of tech executive David Sacks and White House AI adviser Sriram Krishnan, this order responds to conservative concerns about perceived political bias in generative AI systems.

Although the order’s criteria for evaluating neutrality remain unclear, it underscores growing political scrutiny of AI model outputs and content moderation policies. The mandate reflects a broader attempt by the Trump administration to influence how foundational AI tools are developed, audited, and procured especially for use in federal agencies.

Critics warn that enforcing “neutrality” could become a proxy battle over censorship and free speech, complicating relationships between Washington and the private sector. Nonetheless, supporters see it as a necessary step toward ensuring taxpayer-funded AI tools do not reflect ideological bias.

Policy Direction Clear, But Implementation Uncertain

The AI Action Plan marks a pivotal moment in U.S. technology policy, establishing a federal orientation that favors reduced regulation, infrastructure investment, and international outreach. While the strategy is still limited in scope focused largely on executive orders rather than comprehensive legislation it sends a clear signal to both domestic industry and global partners that the U.S. is doubling down on AI as a pillar of economic and strategic power.

Yet questions remain about execution. The plan’s success will depend not just on presidential directives, but also on how Congress, federal agencies, and courts interpret its implications especially as legal challenges and state resistance to federal preemption are likely. For now, the industry is optimistic, with investors eyeing additional exposure to AI as Washington signals open support for growth and deployment at scale.

Source: Bloomberg

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Olivia Brooks

Economic

Political

The Republican-controlled U.S. House of Representatives early on Friday passed President Donald Trump's $9 billion funding cut to public media and foreign aid, sending it to the White House to be signed into law.

The chamber voted 216 to 213 in favor of the funding cut package, altered by the Senate this week to exclude cuts of about $400 million in funds for the global PEPFAR HIV/AIDS prevention program.

Only two House Republicans voted against the cut, Representatives Brian Fitzpatrick from Pennsylvania and Mike Turner from Ohio, along with Democrats.

"We are taking one small step to cut wasteful spending, but one giant leap towards fiscal sanity," said Representative Aaron Bean, a Florida Republican, advocating for a similar spending cut package from the White House every month.

House Minority Leader Hakeem Jeffries countered that the funding cut "undermines our ability to keep our people safe here and to project America's soft power all over the globe," and argued rural Americans' access to emergency information on public radio will be diminished.

The funding vote was delayed for hours amid Republican disagreements about other legislation, and calls from some members of the party for more government transparency about the deceased convicted sex offender and disgraced financier Jeffrey Epstein.

To satisfy the Epstein-related concerns without holding up the funding cut bill any longer, Republicans on the House Rules committee introduced a resolution that calls for the release of Epstein documents by the U.S. attorney general within 30 days.

"It's a sound, good-faith resolution that ensures protections for victims and innocent witnesses," said Representative Virginia Foxx from North Carolina, the Republican leader of the rules committee.

But the top Democrat on the rules panel, Representative Jim McGovern from Massachusetts, blasted the resolution as a "glorified press release" because it lacks an enforcement mechanism to make the Justice Department comply.

When the chamber finally voted on the funding cut, it was the second close House vote on Trump's request to claw back the funds previously approved by Democrats and his fellow Republicans in Congress.

In June, four Republicans joined Democrats to vote against an earlier version of the rescissions package, which passed 214-212.

House Republicans felt extra pressure to pass the Senate version as Trump's administration would have been forced to spend the money if Congress did not approve the cuts by Friday.

The $9 billion cut amounts to roughly one-tenth of 1% of the $6.8 trillion federal budget.

Republicans say the foreign aid funds previously went to programs they deem wasteful, and they say the $1 billion in public media funding supports radio stations and PBS television that are biased against conservative viewpoints.

PREDAWN SENATE VOTE

In a 51-48 Senate vote before dawn on Thursday, only two Republicans, Senators Susan Collins from Maine and Lisa Murkowski from Alaska, voted against the funding cut.

Both questioned why Congress -- constitutionally responsible for the power of the purse -- was taking direction from the executive branch to slash funding.

"There's a good reason I think that we haven't seen a successful rescissions package before the Senate in almost 33 years," Murkowski said in a Senate floor speech this week, "It's because we've recognized that, 'Hey, that's our role here.' "

Funding cuts are regularly approved with bipartisan support in Congress through the appropriations process.

But Democratic leaders this week warned this one-party cut could damage the necessary bipartisanship to pass funding bills.

Funding bills require bipartisan support to reach the necessary 60-vote threshold for government funding legislation to pass the Senate, but a recissions package only requires a simple majority in both congressional chambers to pass.

Trump administration officials have promised to send more rescissions requests to Congress if the foreign aid and broadcasting package succeeds.

This week's funding clawback represents only a tiny portion of all the funds approved by Congress that the Trump administration has held up while it has pursued sweeping cuts.

Democratic lawmakers say the administration has blocked more than $425 billion of spending approved by Congress since Trump's second term began in January.

After the measure cleared the Senate, the White House's Office of Management and Budget Director Russ Vought said more such spending-cut requests are "likely" to be made by the Trump administration.

Murkowski, Collins and some Democratic appropriators also condemned a Thursday comment Vought made to reporters at a Christian Science Monitor breakfast, where he said the “appropriations process has to be less bipartisan.”

“The best way for us to counter what has been said by the OMB director is to continue to work in a bipartisan way," Collins, who chairs the Senate appropriations committee, said as her committee debated government funding for the next fiscal year.

Reporting by Patricia Zengerle, Bo Erickson, Richard Cowan and David Morgan; additional reporting by Ryan Patrick Jones; Editing by Scott Malone and Shri Navaratnam

Source: Reuters

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Economic

China–U.S. Trade War

Strategic Export Restrictions Target Upstream Processing and IP

In its latest effort to safeguard critical technologies and secure economic leverage, the Chinese Commerce Ministry has expanded its export control list to include several EV battery-related technologies. Transfers of these technologies overseas whether through trade, investment, or cooperation will now require special licenses. The focus is on upstream know-how: refining, extraction of lithium, and LFP cathode manufacturing processes, which are essential for the increasingly popular LFP battery used in lower-cost EVs.

These new controls build on prior restrictions imposed earlier this year on rare earth materials and magnets, revealing a clear pattern in China’s trade strategy: shift from raw material dominance to intellectual property and process control. This tightening coincides with the global scramble to localize clean tech production, especially in the US and EU.

EV Expansion Plans Abroad Now Face Regulatory Hurdles

Chinese battery giants like CATL, BYD, and Gotion have rapidly scaled globally, setting up or planning production in the US, Europe, Southeast Asia, and Latin America. But these latest restrictions raise uncertainty over how much proprietary processing know-how can be transferred into overseas ventures.

At this stage, analysts suggest the short-term impact may be muted. CATL’s plants in Germany and Hungary primarily focus on assembling cells and modules not on restricted cathode or lithium processes. Similarly, BYD only assembles battery packs abroad and retains sensitive processing in China. Nonetheless, the long-term question is whether future expansions will face bureaucratic delays or denial of permits from Chinese authorities.

The policy effectively creates a conditional bottleneck: companies can expand globally, but only with Beijing’s approval of the specific technological elements involved. This could delay or reshape many localization efforts, especially in jurisdictions like the US, where clean energy tax credits require non-Chinese sourcing.

Reinforcing Global Dominance in LFP Batteries and Lithium

China controls 94% of global LFP battery production capacity and 70% of lithium processing output, according to Fastmarkets. This chokehold spans not just material extraction but also the technology underpinning high-efficiency LFP cathodes. In the EV sector, LFP batteries though lower in energy density compared to nickel-manganese-cobalt (NMC) types have become favored for their safety, durability, and lower cost. Their adoption has surged among Chinese EV makers and is now expanding into Western markets.

The export restrictions therefore represent a bid to keep that technological edge proprietary. Even if other countries develop LFP production capacity, they are still likely to depend on Chinese expertise for precursor materials and cathode processing, embedding a structural dependency.

Supercharged Innovation Raises the Stakes

BYD and CATL are pushing innovation boundaries that illustrate China’s lead. BYD’s latest “Super E-Platform” enables a 250-mile range with just five minutes of charging surpassing Tesla’s Supercharger metrics. CATL responded with a longer-range LFP battery capable of 320 miles with similar fast-charging performance. These breakthroughs demonstrate not only raw processing power but also process optimization, the very types of IP now under export scrutiny.

Such performance metrics give Chinese EVs a compelling value proposition in global markets. If this innovation edge is restricted from spreading through licensing or joint ventures, rival automakers may struggle to compete on cost-performance ratios unless local alternatives catch up.

Geopolitical Ramifications: From Trade War to Tech Containment

Beijing’s framing of the export controls as protecting “national economic security and development interests” underscores the geopolitical calculus. The move comes as the US and EU implement tariffs on Chinese EVs and battery components, trying to push Chinese firms to build locally or reduce market share. In turn, China is signaling that access to its tech advantage won’t come easily or cheaply.

Liz Lee of Counterpoint Research noted that this marks a shift from material constraints to intellectual property containment. It could accelerate Western efforts to develop domestic or allied processing capabilities, especially for lithium and cathodes. However, these buildouts will take time and substantial investment, during which Chinese firms may further solidify their dominance.

China Shifts from Material Dominance to Technology Leverage

With its new export restrictions, China is recalibrating the terms of competition in the global EV battery race. The controls emphasize not just holding ground in raw materials, but also preventing key process technologies from fueling rival industrial strategies abroad. This puts additional pressure on automakers and governments worldwide to localize not only production but also innovation.

The near-term operational effects may be modest for Chinese companies already abroad, but the longer-term implications are significant. These curbs represent a move from supply chain management to technological gatekeeping intensifying the global race for battery self-sufficiency and redrawing the strategic map of the clean energy economy.

Source: CNN

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Economic

Commodity

Crude Benchmarks Stabilize on Supply Tightness Signals

Oil held steady on Friday following a solid rally in the previous session, driven by optimism about the U.S. economy and tightening supply conditions in refined fuel markets. Brent hovered above $69 per barrel, while West Texas Intermediate traded just under $67, maintaining upward momentum established over the past two months.

Recent macroeconomic data out of the U.S. has allayed fears of an imminent slowdown, even as Washington’s escalating trade actions continue to create geopolitical friction. The resilience of consumer spending and industrial activity has helped sustain risk appetite, leading to broader gains in equities across Asia and other global markets.

Crucially for oil, backwardation continues to dominate the structure of both crude and gasoil futures. This pricing pattern, where near-term contracts are priced higher than those for later delivery, reflects a market in which physical supplies are tight and immediate delivery is at a premium.

Diesel Shortage Adds Upward Pressure to Crude Prices

One of the key causal drivers of crude’s strength is a persistent shortage in the diesel market. According to analysts at Dadi Futures and market data from Europe’s Amsterdam-Rotterdam-Antwerp (ARA) hub, gasoil inventories have dropped to their lowest seasonal level since 2022. Simultaneously, the diesel crack spread an indicator of refining profitability has surged to its highest since March 2024.

This tightness is especially visible in the U.S. and European markets, where diesel demand typically peaks during the summer transport and agriculture seasons. The imbalance between supply and demand in refined products exerts a feedback effect on upstream crude prices, as refiners are willing to pay more for feedstock to meet current output margins.

Huang Wanzhe of Dadi Futures noted that while crude’s strength is supported by diesel fundamentals, the real question is duration: “The logic of diesel tightness propping up crude flat prices remains unchanged. The key question is how long this strength can last.”

OPEC+ Output Expansion Yet to Loosen Market

Despite the OPEC+ alliance relaxing production curbs more rapidly in recent months, the anticipated glut has not materialized at least not in price-setting markets. Analysts at Morgan Stanley and Goldman Sachs pointed out that much of the global stockpile build has occurred in peripheral regions with limited influence on benchmark pricing, rather than in key hubs such as Cushing (U.S.) or Singapore.

This geographic distribution of inventory builds has muted bearish sentiment, as price-setting centers remain relatively tight. As a result, traders are not yet repositioning for a sustained downturn in prices, and physical premiums remain elevated for prompt delivery barrels.

Market Holds Bullish Bias, But Fragile Underpinnings Remain

Oil’s upward trend, supported by strong diesel demand, a backwardated futures curve, and solid macroeconomic data from the U.S., highlights short-term tightness in the physical market. However, the outlook remains uncertain. If inventory builds in peripheral markets shift toward major hubs or if refined product margins ease, the rally may lose steam.

For now, the confluence of peak seasonal demand, a steady macro backdrop, and regional diesel shortages continues to support crude at elevated levels. Traders are watching closely for signs of either a sustained structural tightness or the beginning of a reversal as production catches up and demand normalizes.

Source: Bloomberg

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Economic

Futures Hold Gains as Retail Resilience Lifts Sentiment

Futures tied to major US indices held modest gains late Thursday, continuing the bullish momentum that propelled the S&P 500 and Nasdaq to fresh record closes. Dow Jones futures rose 0.1%, while S&P 500 futures edged up by a similar margin. Nasdaq futures hovered just above flat, reflecting caution ahead of Big Tech earnings and broader macro developments.

Investors welcomed data showing stronger-than-expected retail sales in June and a drop in weekly jobless claims, both of which suggested continued consumer resilience. These indicators helped neutralize concerns that President Trump's tariffs are yet significantly dampening household spending, despite mounting cost pressures across other segments of the economy.

Earnings Season Supports Risk Appetite

Investor sentiment has also been underpinned by corporate earnings that so far reflect strong fundamentals. Netflix kicked off the Big Tech earnings season with a solid Q2 beat and an upgraded full-year revenue forecast, although shares dipped nearly 2% in after-hours trading due to the narrow margin of the revenue beat.

Upcoming earnings from 3M, American Express, and Charles Schwab will offer deeper insight into the strength of the industrial, financial, and consumer segments. So far, earnings have reinforced the market’s bullish tilt in Q2, allowing major indexes to shake off volatility triggered by political headlines.

Fed Focus Shifts from Powell Controversy to Successor Speculation

The political drama earlier in the week centered around reports that President Trump was considering removing Fed Chair Jerome Powell has since faded into the background. Powell responded by defending the Fed’s renovation budget in a letter to the administration, signaling institutional resilience despite mounting scrutiny.

Still, the market has begun to shift attention toward potential candidates to replace Powell next year. The debate centers around who can manage the dual mandate of maintaining monetary credibility while navigating political pressures from a president who continues to call for ultra-low interest rates.

Rate expectations have responded accordingly. Traders currently see a roughly 62% chance of a rate cut in September, though no move is expected at the upcoming July meeting. The Fed’s path forward remains conditional on data trends and tariff-related price effects.

AI Talent War Heats Up as Meta Poaches Apple Engineers

Beyond macro developments, investor focus has also turned to the intensifying competition in artificial intelligence. Meta has ramped up its recruitment spree, hiring multiple former Apple engineers for its Superintelligence Labs. These hires follow Meta’s blockbuster acquisition of Apple’s LLM leader Ruoming Pang, who reportedly secured a compensation package exceeding $200 million.

Meta’s aggressive investment strategy underscores Big Tech’s battle for AI dominance and is expected to drive long-term capital allocation decisions across the sector. The company’s strategic pivot continues to prioritize compute infrastructure, model development, and specialized engineering talent in a bid to compete with rivals like OpenAI and Google.

Other Notable Movers: Netflix, Norfolk Southern

Netflix, despite its earnings beat, saw its shares decline in after-hours trading, with investors parsing the narrow revenue margin and guidance. The market response suggests that expectations for Big Tech are elevated, and even solid reports may not be enough to sustain price momentum without upside surprises.

Meanwhile, Norfolk Southern surged 4.7% after reports from the Wall Street Journal revealed that Union Pacific is in early talks to acquire the rail operator. A merger would potentially create the largest rail network in the US, attracting regulatory attention and reshaping transportation logistics in North America.

As Wall Street rides the tailwind of strong economic data and encouraging earnings, futures markets suggest continued risk appetite heading into the weekend. While concerns over Fed independence and trade policy remain in the background, investors are choosing to focus on corporate resilience and consumer demand. Whether this optimism can be sustained will depend on the coming wave of earnings and clarity from the Federal Reserve’s July policy meeting.

Source: Yahoo Finance

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Daily News

[Quick Facts]

1. Waller: The FOMC should cut rates by 25 basis points this month.

2. U.S. House of Representatives passes Cryptocurrency Bill.

3. UK job market remains weak.

4. Sectarian clashes in Syria subside and Israel halts airstrikes.

5. U.S. does not support Israel's recent strikes in Syria.

6. Russian Foreign Ministry: Russia-Ukraine Talks halted due to Ukraine, Moscow used to new sanctions threats.

7. Positive momentum in Gaza Ceasefire Talks, but differences remain.

8. Daly: Two rate cuts this year are reasonable.

9. US retail sales rebound strongly in June.

[News Details]

Waller: The FOMC should cut rates by 25 basis points this month

Fed Governor Waller supports rate cuts for 3 reasons, saying: "First, tariffs are one-off increases in the price level and do not cause inflation beyond a temporary surge. Standard central banking practice is to 'look through' such price-level effects as long as inflation expectations are anchored, which they are."

"Second, a host of data argues that monetary policy should be close to neutral, not restrictive. Real gross domestic product (GDP) growth was likely around 1 percent in the first half of this year and is expected to remain soft for the rest of 2025, much lower than the median of FOMC participants' estimates of longer-run GDP growth. Meanwhile, the unemployment rate is 4.1 percent, near the Committee's longer-run estimate, and headline inflation is close to our target at just slightly above 2 percent if we put aside tariff effects that I believe will be temporary. Taken together, the data imply the policy rate should be around neutral, which the median of FOMC participants estimates is 3 percent, and not where we are—1.25 to 1.50 percentage points above 3 percent. "

" My final reason to favor a cut now is that while the labor market looks fine on the surface, once we account for expected data revisions, private-sector payroll growth is near stall speed, and other data suggest that the downside risks to the labor market have increased. With inflation near target and the upside risks to inflation limited, we should not wait until the labor market deteriorates before we cut the policy rate."

U.S. House of Representatives passes Cryptocurrency Bill

On July 17th, local time, the U.S. House of Representatives passed the "Guiding and Establishing National Innovation for U.S. Stablecoins Act or the 'GENIUS Act'," with 308 votes in favor and 122 against. The bill aims to enact significant legislative reforms in cryptocurrency regulation. It will be sent to U.S. President Trump and is expected to be signed into law. Additionally, on the same day, the House also passed a second, broader cryptocurrency market structure bill — the “Clarity Act” — with 294 votes in favor and 134 against. This bill will be submitted to the Senate for consideration. It proposes to establish a broader and more industry-friendly regulatory framework for digital assets.

UK job market remains weak

The UK's Office for National Statistics (ONS) reported on July 17th that the labor market continues to struggle due to rising labor costs, with the unemployment rate climbing to a multi-year high. Data shows that the UK unemployment rate for people aged 16 years and over was estimated at 4.7% in March to May 2025. This is above estimates of a year ago, and up in the latest quarter, marking the highest level in four years. When looking at March to May 2025, the period comparable with our Labour Force Survey (LFS) estimates, payrolled employees fell by 0.3% over the year, and by 0.2% over the quarter. The report cited ONS survey findings indicating that some UK businesses may no longer be hiring new employees or filling vacancies left by departing staff. Analysts believe employers are becoming more cautious in recruitment as National Insurance contributions rise. Jane Gratton, Deputy Director of Public Policy at the British Chambers of Commerce, said the data shows the UK labor market continues to weaken, with rising unemployment, fewer job vacancies, and slower wage growth. She noted that despite the slowdown, wage growth outpaces inflation, and employment cost pressure is continuing to erode firms' operating margins.

Sectarian clashes in Syria subside and Israel halts airstrikes

Deadly sectarian clashes in Syria eased on Thursday after armed groups in the predominantly Druze southern province of Suweida declared a ceasefire, and Israel announced it was pausing its airstrikes in recent days. In his first public remarks since the violence erupted over the weekend, Syrian President Ahmed al-Sharaa stated that he had reached an agreement with the Druze to withdraw from Suweida and hand over security responsibilities to local forces. Prior to this, Israel had intensified its airstrikes over consecutive days, claiming the strikes were aimed at protecting the Druze minority. On Wednesday, Israel struck a Syrian military headquarters near the presidential palace in Damascus and deployed additional troops to the north, citing security threats posed by a Syrian military buildup near the border. "I instructed the IDF to act with force, because the Damascus regime sent its army south of the capital and massacred the Druze. As a result of our intensified action, a ceasefire has been established, and Syrian forces have withdrawn back to Damascus," said Israeli Prime Minister Benjamin Netanyahu.

U.S. does not support Israel's recent strikes in Syria

The United States said on Thursday that it does not support Israel's recent strikes in Syria and has made its dissatisfaction clear. Meanwhile, Syrian President Sharaa accused Israel of attempting to divide Syria and pledged to protect the country’s Druze minority. Israel conducted airstrikes on Damascus on Wednesday and also targeted government forces in the south, demanding their withdrawal, claiming the goal was to protect Syria's Druze population.

Syria's state news agency SANA reported on Thursday that Israel had carried out airstrikes in the Suweida region, where clashes between Druze militants and government forces as well as Bedouin tribes had resulted in dozens of deaths. U.S. State Department spokesperson Tammy Bruce said the United States condemns the violence in Syria and is actively engaging with various Syrian parties, calling on the Syrian government to lead the way forward. "I can tell you regarding Israel's intervention and activity is the United States did not support recent Israeli strikes." Despite growing ties between interim President Sharaa and the United States, as well as increasing security interactions between his government and Israel, the violence highlights the challenges he faces in stabilizing Syria and establishing centralized governance.

Turkish President Erdoğan stated that there were attempts to undermine the ceasefire agreement reached yesterday with Turkey's help, adding that Israel has once again shown it does not want peace or stability in Gaza or Syria. "Israel, using the Druze as an excuse, has been expanding its banditry into neighboring Syria over the past two days." he told reporters. The foreign ministers of Jordan, UAE, Bahrain, Saudi Arabia, Iraq, Oman, Qatar, Kuwait, Lebanon, Egypt and Turkey affirmed in a joint statement on Thursday, support for Syria's security, unity, stability and sovereignty, and rejected all foreign interference in its affairs. Syrian government forces withdrew from the Suweida region overnight. White House spokesperson Leavitt said the de-escalation of the Syrian conflict appears to be continuing. "Syria agreed to draw back troops in conflict area." Said Leavitt, stating that the U.S. will keep monitoring the situation.

Russian Foreign Ministry: Russia-Ukraine Talks halted due to Ukraine, Moscow used to new sanctions threats

Russian Foreign Ministry spokeswoman Maria Zakharova stated at a routine press briefing on July 17 that the Russian delegation is willing to travel to Istanbul, Turkey, for a third round of negotiations with Ukraine. Zakharova said the Russia-Ukraine talks have been "suspended" due to reasons on Ukraine's part, adding that "Ukraine either avoiding or not ready for new round of talks." She noted that Kyiv has not sent any signals indicating its readiness for a new round of negotiations. In response to U.S. President Donald Trump's call for Russia and Ukraine to reach an agreement within 50 days, Zakharova said Russia has faced an unprecedented number of sanctions and restrictive measures, and Moscow has grown "accustomed" to new threats of sanctions. She also warned that as Russian forces advance on the battlefield, the likelihood of Ukraine resorting to "terrorist measures" in retaliation against Russia is increasing.

Positive momentum in Gaza Ceasefire Talks, but differences remain

A source familiar with the matter told reporters on July 17th that the latest round of Gaza ceasefire negotiations in Doha, Qatar, is making good progress, though key differences still need to be bridged. The source said Israel submitted a revised troop withdrawal plan to mediators on the same day, proposing to pull back from the "Molag Corridor" in southern Gaza during the proposed 60-day ceasefire. An Arab diplomatic official also noted that Israel has agreed in talks to significantly reduce its military presence in Gaza, including withdrawing from the Molag Corridor and scaling back operations in Rafah. The official said Israel's softened stance could help facilitate an agreement in the coming days. However, he added that disagreements persist between Israel and Hamas over humanitarian aid mechanisms in Gaza and the number of Palestinian detainees Israel is willing to release, requiring further negotiations.

Daly: Two rate cuts this year are reasonable

San Francisco Fed President Mary Daly said in a speech Thursday that the U.S. economy and FOMC monetary policy are in a good place, with the central bank still needing to fulfill its inflation mandate. Inflation remains the biggest "tax" on American households, she noted. While goods price inflation reflects the impact of tariffs (triggered by President Trump), inflation in other areas has not surged. There is no evidence yet of spillover effects from tariff-driven inflation, and the impact may not be as severe as previously feared. The U.S. economy is growing steadily, and the labor market remains strong. Daly emphasized that she does not want to see further weakening in the job market. Broad immigration concerns have not materialized into tangible economic pressures. Other issues, she said, will not distract the Fed from its core mandates of price stability and maximum employment. A forecast of "two rate cuts this year" is a reasonable outlook, Daly added. She expects interest rates to remain higher than pre-pandemic levels, ultimately settling at around 3% or slightly above. Current monetary policy is "modestly restrictive," and overly tight policy could harm the labor market. Importantly, the Fed should avoid preemptive rate cuts, but it should also not wait indefinitely on rate decisions.

US retail sales rebound strongly in June

The US Commerce Department reported that retail sales rose 0.6% month-over-month in June, far exceeding economists' expectations of a 0.1% gain and reversing May's 0.9% decline. Core retail sales (excluding autos, gasoline, building materials, and food services) increased 0.5%, topping the anticipated 0.3% rise.

Retail sales in June included a 1.2% gain in sales of autos and auto parts, a sharp rebound from May's significant 3.8%. Grocery stores surged 1.8% in sales, with a sharp rise in Apparel, Accessories, & Footwear and Building Materials and Garden Equipment and Supplies Dealers. However, Department Store sales fell 0.8%, and Electronics and Appliance Stores saw modest declines.

The resilience reflects consumers' ability to spend despite high interest rates and tariff uncertainty, countering fears of a "retail apocalypse." Strong retail sales data indicate that consumers are still spending, driving economic growth.

The data may reinforce the Federal Reserve's neutral monetary policy stance, reducing the urgency for immediate rate cuts.