News

According to Iran's Tasnim News Agency: Germany has proposed establishing an EU mission in Lebanon to replace UN peacekeeping forces.

Market News: United Airlines (UAL.O) plans to allow passengers to change flights for free to avoid landing at the Florida airport that has been renamed President Donald J. Trump International Airport, a move apparently aimed at customers who object to the airport's new name.

Seven Americans are in quarantine at an Ebola quarantine facility in Kenya after the United States imposed a travel ban, the head of an aid group said.

The German DAX30 index opened on July 17 (Friday), down 145.87 points, or 0.59%, to 24720.59 points;The British FTSE 100 index opened on July 17 (Friday), down 1.67 points, or 0.02%, to 10570 .57 points;The FCHI index opened down 57.99 points, or 0.69%, at 8319.87 points on July 17 (Friday);The European Stoxx 50 Index opened down 66.36 points, or 1.06%, on July 17 (Friday). It reported 6217.25 points;Spain’s IBEX35 index opened down 55.44 points, or 0.29%, to 19182.96 points on July 17 (Friday);Italy’s FTSE MIB index opened down 506.46 points, or 0.97%, to 51867.5 points on July 17 (Friday).

Swissquote analyst Ipek Ozkardeskaya said Taiwan Semiconductor’s upward revision to capex expectations may have sparked market concern and contributed to the recent tech-sector sell-off. She noted TSMC’s Q2 profit reached a record but the stock did not rally, implying investors see chip valuations as rich. Ozkardeskaya warned investors are increasingly uneasy about overcapacity risk and large-scale AI buildouts even as tech firms keep spending. Upcoming US mega-cap earnings next week could ease weak sentiment, but signs Alphabet and peers are further increasing infrastructure spend may add downside pressure on sector stocks.

British police: Man charged on Iran-related offences.

National Highway Traffic Safety Administration: Ford Motor Company is recalling 288,314 U.S. vehicles.

Azerbaijan Ministry of Energy: Natural gas exports to Europe from January to June were 5.9 billion cubic meters.

Ukrainian President Zelensky: In Odessa, a Russian missile attack on a residential building at night killed two people and injured five others, including three children.

As investors, especially retail investors, use financing and leverage to buy stocks in large numbers, markets such as Japan and South Korea have seen a significant increase in volatility recently. Michiko Sakai, Japan Equity Portfolio Manager of Morgan Asset Management, said: "Although it is risky to severely underweight the artificial intelligence sector, at the same time, there are also risks to continue to significantly increase your holdings in AI and expand investment exposure." She pointed out that the AI ​​market is no longer limited to a few "AI concept stocks", but has expanded to multiple fields such as AI infrastructure, memory chips and components, providing investors with more layout options. but, She also emphasized that the market is now increasingly sensitive to valuation levels and the sustainability of corporate profits. Michiko Sakai believes that AI investment is expected to continue to grow in the future, but the question that the market really needs to answer is: "Should the valuation of AI companies be based on short-term profits or on long-term growth expectations?"

UK Maritime Trade Action Office: Crew safety, no environmental impact reported.

Tasnim News Agency: An Iranian citizen was killed in a US attack on the Chabahar port.

As investors worry about whether the artificial intelligence-driven rally can be sustained and have lifted previously accumulated leverage on technology stocks, the stock price of Japanese memory manufacturer Kioxia Holdings fell by more than 16% on Friday. Asian stock benchmarks fell broadly, with artificial intelligence-related stocks suffering a sharp sell-off. NI225 once fell by more than 6%, hitting an intraday low in more than a month; Taiwan's weighted index closed down nearly 6.5%. South Korea's stock market was closed for a holiday. Stock indexes in Australia, Hong Kong and Singapore also fell. Kioxia once hit the daily limit, dragging down Tokyo stocks. As one of the important beneficiaries of the AI ​​market, the market value of memory chip manufacturer Kioxia has risen sharply this year, once reaching 60 trillion yen (approximately US$369.5 billion). However, as the stock price fell sharply on Friday, Kioxia's market value shrank to 28 trillion yen. Compared with the intraday historical high hit on June 22, its stock price has been cut by half. JPMorgan Chase’s quantitative strategy team stated that the market has become overly pessimistic again recently. Views such as "the AI ​​boom is about to end" and "the AI ​​bubble is bursting" have received renewed attention. The team pointed out in the latest report: "Although the supply and demand adjustment of AI concept stocks may be coming to an end, those AI stocks that rely on market sentiment and funds to drive their rise may still need more time. Only when these pessimistic narratives are fully released can they truly bottom out."

Volvo Cars Chief Financial Officer: The impact of high oil prices and raw material prices will begin to appear in the second half of this year.

Russian Defense Ministry: Russian troops attacked infrastructure in Odessa and Black Sea ports in Ukraine.

Volvo Cars' chief commercial officer said the U.S. market is showing some positive signs of recovery but faces challenges from high tariffs and regulatory changes for electric vehicles.

German semiconductor stocks fell about 4% in early trading in Frankfurt.

Alam Saleh, a professor at the Australian National University, said that while economic pressure and regional diplomacy may indeed become problems for Iran, the Iranian leadership ultimately believes that it is in a "fight for survival" and is unlikely to give in easily. Salih said: "Iran's economy relies on domestic production and is economically independent to a certain extent. This country has survived under sanctions for nearly 47 years." He added that Iran is not willing to show weakness in front of the United States, and it is even less likely to make concessions because its military power is damaged. In terms of weapons production, US media reported that, Iran quickly resumed drone production after the April ceasefire, and some analysts believe it may take just months to fully replenish its drone inventory. Saleh said: "Therefore, Iran will not accept any deal unless any agreement can guarantee Iran's security. No matter how much economic pressure it faces, Iran will not compromise. It has no other choice but to resist."As for the United States, analysts believe that the United States' concerns about weapons stockpiles are not mainly related to the current Iranian war. Rather, it focuses more on possible future conflicts with other superpowers. Brian Finnercain, a security expert at the International Crisis Group, said: "It is clear that key weapons, including Patriot missile interceptors and Tomahawk cruise missiles, are being depleted at an alarming rate. These weapons may be needed in the future to deal with any military contingencies involving other superpowers."Overall, there are pressure points on both sides that make a long-term war costly. But Saleh believes that The United States is suffering greater reputational damage. He said: "The world has seen that the United States cannot solve the Iranian problem by any means. This shows that the US military also has its own limitations when dealing with a middle power like Iran."

Japanese Finance Minister Katayama Satsuki: The government will work hard to avoid causing market misunderstandings on fiscal and monetary policy stances.

Japanese Finance Minister Katayama Satsuki: The government is paying close attention to daily market trends and economic data, and will work to steadily reduce Japan’s debt-to-GDP ratio.