Axios

The China-fueled economic upheaval that helped transform American politics is now hitting Europe.

Why it matters: The new strain on European industry is building pressure for the continent to embrace the type of China crackdown it has long resisted.

• It is the next big test of whether China's export boom will push other major economies toward the more protectionist approach that the U.S. embraced years ago.

Banca Monte dei Paschi di Siena has offered to buy rival Italian lenders Banco BPM and Banca Generali for a combined €34 billion in stock. The two offers aren't "conditionally linked," which means that either could happen without the other.

Why it matters: Banca Monte has been trying to repel a takeover by Italy's largest bank, Intesa Sanpaolo. This new effort could make Intesa's bid look more anticompetitive.

Big recent moves in U.S. government bond yields reflect in part a new financial reality: Foreign governments are far less willing to finance American budget deficits than they used to be.

Why it matters: The U.S. Treasury market's role as the place where foreign governments socked their cash for safekeeping conferred huge advantages on the U.S. government and economy and kept borrowing costs lower than they would otherwise be.

South Korean memory chipmaker SK Hynix plans to shower cash on shareholders in an effort to end a two-month-long share slump.

Why it matters: South Korea's stock market has become the epicenter for global AI-related volatility. SK Hynix and fellow chipmaker Samsung Electronics are the key drivers, accounting for roughly 50% of the country's benchmark KOSPI index.

Many Federal Reserve officials believed that the central bank would have to raise interest rates if inflation did not ease, according to the minutes released on Wednesday from the Fed's July 28-29 policy meeting.

Why it matters: Some of the nation's top policymakers worried that interest rates weren't doing enough to restrain the economy and bring down inflation. They warned that waiting too long to raise rates could mean bigger, more painful increases down the line.

JBS of Brazil offered to buy the 18% stake it doesn't already hold in Colorado-based Pilgrim's Pride for around $1.2 billion in stock.

Why it matters: This would give the world's largest meatpacker full control of America's second-largest poultry producer (behind Tyson Foods).

Stocks have been behaving oddly recently, with downright dull moves for the S&P 500 index, even as companies within it swing like mad.

Why it matters: This dynamic — individual stocks posting large, uncorrelated moves that cancel each other out — is another way the AI boom is reshaping the markets.

The U.S. Navy is in the throes of a roller-coaster news cycle.

The big picture: In just the past few days and weeks, we have heard:

• Reports of deteriorating conditions on multiple warships, illuminating how difficult at-sea logistics is and how quickly a deadly conflict can fuel online culture wars.
• A call from President Trump to overhaul shipbuilding as well as the physical design of some of America's largest and most expensive vessels.

President Trump said Tuesday night he is pausing for three days 50% tariffs on billions of dollars worth of Canadian goods that were set to take effect early Wednesday.

Why it matters: It follows an intense push in recent days — including talks between Trump and Canadian Prime Minister Mark Carney on Tuesday — to avert another escalation in the North American trade war.

Air travel is being squeezed from multiple directions this summer as extreme weather, capacity constraints and geopolitical conflict strain the global aviation system.

Why it matters: Overlapping pressures across the aviation network are leaving travelers more vulnerable to delays, cancellations and higher fares, with no immediate end in sight.