Bloomberg News: USMCA, Trump Crypto, Meta AI Cloud

Bloomberg News Now covers critical developments across trade, finance, and technology. This segment highlights the USMCA shake-up, Donald Trump's significant cryptocurrency earnings, and Meta Platforms' pivot towards offering AI cloud services.

USMCA Shake-Up Creates Uncertainty

The United States has decided to pursue annual reviews of its trade deal with Canada and Mexico, known as the USMCA. This decision, rather than opting for a longer-term renewal, introduces a degree of uncertainty for companies operating across North America. Brendan Murray, Bloomberg's global trade correspondent, reports that this move could impact various sectors, including automotive, agriculture, and energy, by creating potential for ongoing renegotiations and tariff adjustments.

Trump Reports Substantial Crypto Earnings

In financial news, former President Donald Trump has reportedly disclosed earnings of at least $1.4 billion from cryptocurrency and meme coin-related businesses in 2025. This disclosure comes as part of his latest financial disclosures. Trump also commented on the current market conditions, noting the stock market's strong performance, and addressed recent talks between the US and Iran.

The full discussion can be found on Bloomberg Podcast's YouTube channel.

Meta's AI Cloud Infrastructure Pivot

Meta Platforms Inc. (NASDAQ:META) is reportedly planning to launch a cloud infrastructure business. This strategic shift aims to generate revenue by selling access to AI compute power, positioning Meta as a competitor to established cloud giants like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud. Mandeep Singh, a Bloomberg analyst, suggests this move is a response to Meta's substantial investments in AI development and the need to monetize its extensive computing resources. The company is reportedly looking to offer services similar to those provided by companies like CoreWeave, which specializes in GPU cloud services for AI and machine learning workloads.

Market Update and Fed Policy

On the broader market front, major indices saw mixed performance. The Dow Jones Industrial Average experienced a slight increase, while the Nasdaq remained flat, and the S&P 500 saw a modest gain. Treasury yields remained stable, with the 10-year yield at 4.46% and the 2-year yield at 4.15%. In monetary policy news, Federal Reserve Chair Jerome Powell has indicated a move away from providing explicit forward guidance on interest rates. Powell stated at a European Central Bank forum that the Fed will focus on data-driven decisions, emphasizing the central bank's commitment to price stability and its independent approach to monetary policy.

Job Market Data and Kroger Acquisition

In economic data, the private sector added 98,000 jobs in June, according to ADP. This figure fell short of economists' expectations, which had anticipated around 120,000 jobs. This data precedes the Labor Department's more comprehensive jobs report, scheduled for release tomorrow. In corporate news, Kroger Co. (NYSE:KR) has reached an agreement to acquire grocery chain Giant Eagle for $1.65 billion. This acquisition is expected to add approximately 200 stores to Kroger's portfolio, primarily in Pennsylvania and Ohio.