Key global financial news headlines from overnight and this morning include:
1. Trump States No U.S.-Iran Deal Yet, White House Disputes Iranian Media Report 2. Trump Opposes Iranian Control of Strait of Hormuz, Highlighting Key Negotiation Sticking Point 3. FAA Orders SpaceX to Investigate Starship Booster Anomaly, Grounds Subsequent Test Flights 4. HP Reports Higher Q2 Profit and Revenue but Lowers Full-Year Outlook 5. Meta to Launch AI Chatbot Subscription Service Starting at $7.99 Monthly 6. Fed Governor Cook: Prepared to Raise Rates if Inflation Does Not Recede in Time
Trump States No U.S.-Iran Deal Yet, White House Disputes Iranian Media Report U.S. President Donald Trump stated on Wednesday that unresolved issues remain in peace talks with Iran. This followed Washington's denial of a report by Iran's state television claiming a framework agreement had been reached to restore shipping through the Strait of Hormuz and lift the U.S. maritime blockade on Iranian vessels within a month. Speaking at a cabinet meeting, Trump said Iran remains eager to end the conflict, which has severely disrupted global energy supplies via this strategic waterway, but the conditions proposed by Tehran have not yet satisfied Washington. "Iran is very, very willing. They'd like to make a deal. We're not there yet. We're not happy, but we will be. Either that, or we'll have to take care of it once and for all," Trump said, without elaborating further.
Trump Opposes Iranian Control of Strait of Hormuz, Highlighting Key Negotiation Sticking Point U.S. President Donald Trump stated that the Strait of Hormuz will not be controlled by any single country, highlighting a key obstacle in resolving the conflict with Iran. "Nobody's going to be controlling it. It's international waters," Trump said at the White House on Wednesday. "The strait will be open to everybody," and the United States will "look after it." Trump made these remarks when asked at the cabinet meeting whether he could accept a short-term agreement to open the strait under Iranian control.
FAA Orders SpaceX to Investigate Starship Booster Anomaly, Grounds Subsequent Test Flights The U.S. Federal Aviation Administration (FAA) stated that SpaceX must first investigate why the booster did not perform as expected during last Friday's test flight before it can launch the Starship rocket again. Texas-based SpaceX has positioned Starship as central to its upcoming initial public offering. The powerful vehicle is key to the company's plans for launching a new batch of Starlink internet satellites and deploying orbital data centers, among other initiatives. During last Friday's flight, the Starship booster successfully separated from the spacecraft it launched but failed to complete an engine burn. This burn was intended, according to the company's plan, to prepare the booster for a splashdown landing.
HP Reports Higher Q2 Profit and Revenue but Lowers Full-Year Outlook HP Inc. reported increased profit and revenue for its second fiscal quarter, but the company stated it now expects full-year profitability to be lower than previously forecast. The printer and computer maker said on Wednesday it now anticipates full-year earnings per share in the range of $2.15 to $2.45. Its previous forecast range was $2.47 to $2.77 per share. The company expects full-year adjusted earnings per share between $2.90 and $3.10, lowering the top end of its forecast from $3.20 per share. Analysts surveyed by FactSet had expected $2.87 per share. "Having delivered two solid quarters, we are executing with discipline in a dynamic environment and are enhancing our full-year outlook to reflect this," said Chief Financial Officer Karen Parkhill.
Meta to Launch AI Chatbot Subscription Service Starting at $7.99 Monthly Meta Platforms Inc. is for the first time beginning to sell a Meta AI chatbot subscription service to consumers, a significant step in building its artificial intelligence business, which is expected to help partially offset its multi-billion dollar investments in the AI field. The newly launched subscription service has two tiers. A company spokesperson stated the base tier, called Meta One Plus, costs $7.99 per month and is aimed at users who frequently use Meta AI to generate images and videos or rely on it for complex reasoning. The spokesperson added that the higher tier, Meta One Premium, costs $19.99 per month and includes the same features as Meta One Plus but with higher usage limits. The Meta AI subscription service will first launch in Singapore, Guatemala, and Bolivia before expanding to more countries.
Fed Governor Cook: Prepared to Raise Rates if Inflation Does Not Recede in Time Federal Reserve Governor Lisa Cook stated that she is prepared to raise interest rates if inflation does not decline in a timely manner. Speaking at Stanford University on Wednesday, Cook said the correct course for now is to keep rates steady, but risks remain tilted toward higher inflation. According to a published copy of her remarks, she stated, "With inflation having been above target for five years, I am particularly focused on the risk that high inflation becomes entrenched in price- and wage-setting behavior."
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