• Markets: Stocks slipped yesterday after the combination of the deepening bond crisis and renewed hostilities in Iran (more on both shortly) gave investors the spooks. Elsewhere, Dell fell ahead of its Q2 earnings report, briefly blunting its bonkers momentum before moving up again in after-hours trading.

BONDING MOMENT

Niv Bavarsky

This is not what John Lennon had in mind when he hoped “the world will be as one.” Government debt was on sale in several countries yesterday, with bond prices hitting longtime lows for the same reasons that had traders dumping US Treasury bonds in recent weeks.

Investors around the world are demanding higher premiums for holding longer-term government bonds amid fears of unsustainable debt levels and persistent inflation that could prompt central banks to hike interest rates. The inflation concern deepened after the US and Iran began exchanging fire again over the weekend following a month-long pause, pushing oil prices up by almost 6% this week.

Global sale

Bloomberg calculates that the G7 developed economies saw their average government bond yields—which move in the opposite direction to bond prices—rise to the highest level since 2000:

• The yield on the 30-year UK government bond hit its highest point since 1998 yesterday.
• Japanese 10-year government bond yield broke 3% yesterday for the first time since 1996 amid reports that the government is due to expand its budget, while lowering taxes. Treasury Secretary Scott Bessent suggested he thinks the country’s central bank will raise interest rates to support the yen.
• France’s 10-year bond yield rose to near 2008 highs last week due in part to concerns about unsustainable levels of government borrowing.

Stateside…Treasury bond yields rose slightly. Last month, they hit the highest level since 2007, declining briefly after Bessent announced the expansion of a government bond buyback program, before rising again. Meanwhile, the trading odds that the Federal Reserve will raise interest rates at its next meeting nearly doubled to almost 70% since last week.

Why it matters: Aside from raising borrowing costs for governments, growing yields herald higher borrowing costs for consumers and businesses.

Meanwhile…G20 finance ministers are meeting in Asheville, NC this week, and how the Treasury intends to deal with the bond market is likely on the agenda.—SK

      

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World

Tour de headlines

Ali Saeedi/Getty Images

🌍 US launches new series of airstrikes on Iran. The US military struck Iran near the Strait of Hormuz yesterday, which it said was in response to recent attacks by Iran on commercial ships in the waterway. In a social media post, President Trump said that if Iran retaliates, “they will be hit again at a much harder and higher level.” Iran said it would respond with “crushing and devastating blows.” The renewed hostilities come after weeks of relative calm in the region, as the US pivoted to hitting Iran with economic sanctions instead of missiles. But the tit-for-tat strikes now threaten to increase tensions further, six months after the war began. More than 50,000 US troops are currently stationed in the Middle East, the largest buildup in decades.

🎥 Trump endorses bipartisan Hollywood tax incentive plan. One thing that apparently can bring Republicans and Democrats together is a love of the movies. President Trump threw his support behind a federal tax incentive for US film and TV production, which California lawmakers have long suggested to prevent industry jobs from leaving for other countries. Sen. Adam Schiff, a Democrat, said he was in “strong agreement” with Trump on the issue. Per Variety, around 73,000 US film jobs—two-thirds of which were in Los Angeles—have been lost since 2022 as aggressive tax incentives and lower labor costs increasingly lure productions overseas.

🇨🇦 Carney asks US to “stop doing memes” amid trade war. Canadian Prime Minister Mark Carney told reporters yesterday that he is open to resuming the stalled trade talks between the US and Canada, but only “when the Americans stop doing memes, stop throwing shade, stop trying to be tough and start being serious.” The PM’s comments were in response to a question about Trump administration officials making fun of Canada’s military, CNBC reported. “It’s beneath their office,” Carney added. Negotiations are at a standstill after the US slapped Canada with 50% tariffs on $20 billion worth of goods last month and Canada responded with retaliatory tariffs three days later.—AE

BOOK CLUB PICK

John Nacion/Getty Images

After surviving seven days at sea and100 hours inside the Egyptian pyramids, MrBeast is reportedly having some trouble surviving his first book launch. The Most Dangerous Games, a collaboration between the YouTuber Jimmy “MrBeast” Donaldson and prolific thriller author James Patterson, is “on track to be a historic bomb,” according to Semafor.

Semafor reported that presales are clocking in “in the four digits,” though IGN reported that a senior source disputed that narrative. Publisher HarperCollins, which hasn’t responded to requests for comment, likely spent a ton of cash on the pair’s author fees that will be difficult to recoup if the book doesn’t sell like gangbusters.

It feels like a partnership out of left field. Patterson has written several novels with famous people, from Dolly Parton to Bill Clinton. But the crossover between Donaldson’s younger, internet-focused audience and Patterson fans wouldn’t even fill an early 2000s Barnes & Noble loveseat. Donaldson told USA Today that he was hoping the book, which follows a fictional (more) dangerous version of the Squid Game-like challenges he’s become known for, would reach multiple generations in a family. “When’s the last time there’s been a book that a mom and her son or daughter would also be interested in?” (Easy, Marley and Me.)

Hail Mary. Donaldson is trying to pad sales by offering fans who buy a physical copy of the book a chance to win $1,000,000.—MM

      

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SAY AHHHH

Illustration: Morning Brew Inc., Photo: Dyson

After finding success with floors and hair, Dyson hopes your mouth will be its next frontier. The air-bending gadget company launched an AI-powered electric toothbrush yesterday that doubles as a sharpshooting water pick.

Open wide for the CameraJet. Dyson’s $499 oral product is geared toward people who lie to the dentist about how often they floss, and who are willing to pass their sink time by viewing a livestream of their teeth rather than scrolling. According to Dyson:

• The toothbrush uses an endoscopic camera to identify and instantaneously shoot refillable mouthwash between your teeth while you brush.
• You can watch live from the brush’s POV via the MyDyson app, which also analyzes your thoroughness. (Footage apparently isn’t stored and is only captured when you prompt the brush.)

One catch: You have to use non-foaming toothpaste, lest it block the camera. Dyson is launching a 2.5oz tube soon for ~$11.

“If it turns out not to be a good commercial idea like the car, we’ll stop it,” chairman James Dyson told the Wall Street Journal. The vacuum-maker has struck out with EVs, washing machines, and air-purifying headphones. But it hit a home run with blow dryers, which account for 30% of Dyson’s US business as of 2023. An all-seeing toothbrush could be the next jewel in its personal care crown.—ML

      

Sam’s stock of the week

Deal with Google turned this geothermal stock green

Illustration: Morning Brew Inc., Photo: Fervo

On Wednesdays, the Brew’s Sam Klebanov highlights a fascinating stock, commodity, or other asset that’s worth your attention.

The world’s biggest geothermal energy contract is heating Fervo Energy. Its shares jumped 28.4% yesterday after the company announced an agreement to sell 400 megawatts of clean electricity to Google for a planned data center in Utah.

The record deal for green wattage, which can electrify up to 400k homes, is coming at a much-needed time. The Bill Gates-backed geothermal power purveyor was down by more than 50% since its May IPO.

Heating demand

Fervo is working on generating power from heat extracted from the ground using fracking tech from the oil industry—an emergent green energy source that AI hyperscalers are embracing, alongside nuclear plants:

• Fervo says it will start delivering electricity to Google in 2028 from its flagship Cape Station geothermal project in Southwestern Utah.
• The $2 billion development is expected to connect to the grid by the end of this year.

Looking ahead: Yesterday’s deal builds on Google’s existing 115-watt agreement with Fervo, and gives it the option to expand its purchases by 600 megawatts by 2030.—SK

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News

What else is brewing

• The House voted to pass a short-term spending bill that would avert a government shutdown ahead of the midterm elections in November.
• A USPS whistleblower alleges that the postal service defied court orders and rushed to build a faulty ballot system, as part of President Trump’s executive order to limit mail-in voting.
• The judge in the high-profile Lindsay Clancy murder trial told the jurors to keep trying to reach a verdict after they said they were unable to reach a unanimous decision.
• Apple Maps joined Google Maps in renaming Lake Ontario to “Lake America” following President Trump’s executive order.
• GoPro was acquired by a new company called Starman Optical for $285 million, following years of waning sales.
• Stan Kroenke, the owner of the NFL’s Los Angeles Rams, is buying the MLB’s Los Angeles Angels from longtime owner Arte Moreno.
• Sonos unveiled a lineup of new devices, including headphones and an upgraded soundbar, as well as a push into AI, Bloomberg reported.

recs

• A guide to all the movies coming out this fall.
• The 10 best vacation destinations for couples.
• A site that shows you how YouTube looked and functioned in 2007.
• A quirky everyday walking shoe.**

^{*A message from our sponsor. **This is a product recommendation from our writers. When you buy through this link, Morning Brew may earn a commission.}

Play

Word Search: Our puzzle this week features a whole lot of tennis greats from yesterday and one who is literally hitting the court at the US Open today. Play the Word Search here.

Geography trivia

There are only three countries in the world that have a unique initial (aka no other country starts with their first letter). They’re also all on the same peninsula. Can you identify them?

Answer

Oman, Qatar, and Yemen

Word of the Day

Today’s Word of the Day is: gangbusters, meaning “outstandingly excellent or successful.” Thanks to Brandon from Cincinnati, OH, for the suggestion. Submit another Word of the Day here.

Correction: In yesterday’s Tour de Headlines, we incorrectly referred to Duane “Keffe D” Davis, who was convicted for the 1996 murder of Tupac Shakur, as Keefe. We apologize for the error.