• Markets: Stocks managed to clinch a W yesterday after bond yields retreated from earlier highs (more on that below). Tech stocks got a boost from Micron’s strong earnings report—even though Micron itself dipped early in the day before heading upward.

IN A SLUMP

Illustration: Morning Brew Inc., Photo: Douglas Sacha/Getty Images

Government debt is getting dumped like it forgot your birthday. Bond yields around the world hit new multidecade highs yesterday as investors—concerned by inflation and rising fiscal deficits—continued a monthslong, volatile sell-off.

Some of yesterday’s spikes reversed course within hours, but at their peaks:

• The yield on 10-year US Treasury notes hit 5.34%, a level last reached in 2002.
• France’s 10-year yield also rose to its highest point since 2002.
• Britain’s 30-year yield surpassed 6%, which hasn’t happened since 1998.
• Japan’s 10-year yield remained at 30-year record levels after temporarily retreating from that high last week.

As the day wore on, investors started “picking between winners and losers,” per the Wall Street Journal. In an indication of which government debts they may consider relatively safer, yields on US and German bonds fell, while yields on French, Italian, and Greek bonds remained higher. (As a reminder, bond yields move inversely to bond prices.)

Why is this happening?

Bond markets—which influence borrowing costs for corporate financing and mortgages—came under serious pressure after the Iran war started disrupting global energy flows:

• The international benchmark for oil sat just above $70 per barrel before the war began, but now hovers around $100. These elevated prices have exacerbated inflation in individual countries, and investors aren’t sure when it’ll end.
• With the underlying concerns expected to continue, “We would expect volatility to persist,” Rockefeller Capital Management’s chief investment officer told WSJ.

These concerns are compounded in countries with ballooning deficits and high government spending. France, for example, appears borderline radioactive in the bond market as its fragmented political leaders work to rein in its persistent deficit with multibillion-dollar spending cuts.

Though US debt recently surpassed $40 trillion, investors appear a bit more comfortable buying short-term US bonds after softer-than-expected inflation data released this week made a second rate hike this year seem less likely. This morning’s jobs report may give investors a clearer picture of the country’s economy.—ML

      

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World

Tour de headlines

Kevin Carter/Getty Images

📉 Nike announced poor sales, layoff plans with earnings report. Yesterday, Nike announced its second consecutive quarter of falling revenue, along with plans to strengthen business “the right way for the long-term,” as CEO Elliott Hill said in a statement. Since Hill took the reins in 2024, he’s been attempting to claw back retail business lost in the company’s prior focus on direct-to-consumer sales. Hill said that to shore up Nike’s finances, headcount will shrink, although specific eliminations won’t be decided until calendar year 2027. The Wall Street Journal reported that Nike stock is on track to hit its worst year on record; it’s down more than 40% so far this year.—HVL

🚢 The US is moving troops to the Middle East as Trump mulls next steps in Iran. The US military is sending ships carrying ~9,000 troops to the Middle East, a government official told the Associated Press yesterday. The Wall Street Journal reported that the US was sending a third aircraft carrier and additional ships carrying members of the Navy and Marine Corps to the region. The move comes after President Trump rejected Iran’s latest ceasefire proposal and said he would resume attacking Iran after the US midterm elections next month if a deal could not be reached.—AR

⚖️ Renee Good’s family sued the government over her death. The family of Renee Good, who was fatally shot by an ICE agent during the Trump administration’s immigration crackdown in Minneapolis, filed a pair of federal lawsuits yesterday, against the officer who killed her and high-ranking government officials. Good’s death in January, as well as that of fellow US citizen Alex Pretti, brought nationwide attention to the ICE surge in the area. The suits accuse the government of being responsible for Good’s wrongful death, failing to investigate the death properly, and acting with racial animus against Hispanic and Somali immigrants. Government officials did not immediately respond to news outlets’ requests for comment.—AR

A BIT OF NOT SO FREE ADVICE

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It looks like AI chatbots that can answer questions by synthesizing humanity’s knowledge in seconds aren’t killing consultant billable hours. Consulting and outsourcing firm Accenture surprised Wall Street with a strong earnings report yesterday, propelling its stock up as much as 22%.

Advice still sells

Accenture’s strong earnings and rosy outlook for next year eased concerns that AI will replace professional recommendation-givers. The firm said its revenue rose 7% last quarter compared to the previous year.

AI might be creating more consulting work:

• Accenture also announced a record number of new contracts with large clients like Alphabet and Amazon.
• The company said its major clients, like FedEx and BP, are embracing AI tools and turning to their human consultants for technical guidance. It also recently signed a $2 billion deal with Anthropic to help the AI lab ensure its products are safe for companies to use.

Still, Accenture’s stock is down by more than 20% since the start of the year, even after yesterday’s surge, as many analysts warn that AI will hurt its international IT outsourcing business—a major source of revenue.

And consultants’ jobs are changing: Fellow consulting powerhouses like McKinsey and EY say they’re increasingly charging clients based on delivery of measurable results rather than by the hour. McKinsey shared last year that it’s focusing on projects that involve tech implementation expertise, while its traditional bread and butter of business strategy PowerPoints now accounts for less than 20% of its work.—SK

      

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LISTEN UP

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If you haven’t been “Choosin’ Texas,” well, someone has. Country Singer Ella Langley’s two-steppin’ song recently set a new record for most weeks at the No. 1 spot on the Billboard Hot 100. The hit, currently in its 24th week at the top of the chart, unseated previous record holder Mariah Carey’s “All I Want for Christmas Is You”—despite everyone online claiming they’ve never heard Langley’s song.

“Choosin’ Texas” was more of a slow burn. The song debuted last November at No. 39, and didn’t break the top 10 until January, eventually reaching No. 1 in February. It dropped from the top spot in May, but clawed its way back up in July, and has remained there ever since.

That’s a pretty big feat for a country artist: Between 2000 and 2023, only four country songs occupied the top spot. Two of them were Taylor Swift songs.

Is this a psyop? If you have no idea who or what is doing the song’s choosing, you’re not alone. Folks are developing a slew of theories as to how a song can get so popular despite so many people having never heard it. Unquestionably, the song is all over TikTok (though it’s not attached to a distinct trend). It’s also inspiring think pieces: Rolling Stone says if you’re unaware of it, it’s because of your anti-country bubble, CNN says it means the monoculture is for real dead this time, and Garbage Day considers that maybe the whole system is made up and the points don’t matter.—MM

      

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DAVE’S SPORTS DESK

An English scandal unrelated to the royal family

Nick Iluzada

On Fridays, the Brew’s Dave Lozo looks at a sports business story that says a lot more than just the final score of a game.

Here’s a story that your American friends who got into soccer three months ago probably won’t stop talking about: Manchester City used “sham” sponsorship contracts across nine seasons starting in 2009 that allowed the Premier League team to misrepresent its revenue and create the false appearance of compliance with league financial rules, the league concluded after an investigation.

No sanctions have been meted out yet, but the legal proceedings stemming from the ruling (an explainer of this complicated British drama can be found here) are only just beginning:

• Man City, which has denied any wrongdoing, has until today to appeal—and if they do, a final verdict must be delivered within 12 weeks.
• Etihad Airways, the club’s main sponsor, said it is considering a lawsuit against the Premier League and denies being involved in any improper commercial arrangements.
• Man City won three league titles during that nine-season window, and rival teams may seek compensation for lost revenue over that time, per the BBC.

Cheating the system might pay: The Athletic reports that Man City earned nearly $1.5 billion in prize money from Premier League and Union of European Football Associations competitions during the infraction-laden time period.—DL

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Quiz

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News

What else is brewing

• Tennessee’s governor postponed all executions after Christa Pike survived being given two doses of lethal injections. Pike’s lawyers said yesterday that she was in critical condition and receiving care at a hospital.
• Mortgage rates rose to their highest level since 2023.
• The Supreme Court agreed to decide whether immigrants facing deportation can be held in detention indefinitely, taking up an issue at the heart of President Trump’s immigration crackdown.
• A dual UK-Iranian national was arrested yesterday in connection with a thwarted terror attack on a US-operated UK military base.
• More than 60 million children have been auto-enrolled in Trump Accounts, the Treasury Department said, but families will still need to take action to get $1,000 from the government if they’re eligible for the funds.
• Caitlin Clark’s new signature Nike shoe nearly sold out within two hours of its debut yesterday.

recs

• A ranking of the world’s best employers for 2026.
• Science-backed ways to get over a bad day.
• Watch this tour of former NFL coach Mike Tomlin’s Minecraft city.
• A fun Halloween LEGO set.**

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Play

Jigsaw: This edition of our news picture puzzle takes you to the recent opening of Nanjing Underwater World in China. Play the Jigsaw here.

Friday puzzle

Which of the following words is the odd one out?

beehive

deep

essence

jail

open

teacup

Answer

Essence. The other words start with the sound of their first letter.

(Source)

Word of the Day

Today’s Word of the Day is: monoculture, meaning “a prevailing culture marked by homogeneity.” Thanks to Jessica H. from Toronto for the dominant suggestion. Submit another Word of the Day here.