Key Stories from the past week: A sweeping bill & UK budget angst

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President Trump’s “Big Beautiful Bill” passed in a 218-214 vote on Thursday, introducing a series of significant changes for domestic policies. The sweeping bill had no shortage of opposition, including Elon Musk who continued to voice his opinion on social media, which resulted in the feud between Musk & Trump reigniting. Rate cut expectations took a hit after new strong NFP data, which showed resilience in the labour market. UK fiscal woes mount after series of U-turn policies blew a hole in in budget plans, resulting in a selloff in Gilts. More in this week’s key stories below:

Strong job data weighs on cuts
US Non-Farm Payrolls came out stronger than expected at 147k gains vs expected 106k while previous reading was revised higher at 144k from 139k. Unemployment saw a decline in June to 4.1% from expected 4.3% and down from previous month’s reading of 4.2%. The odds of a July cut were scrapped. Yields rallied on the news with 10yr jumping some 8bps. The risk is that September cuts also would be scrapped should readings over the summer show a sound labour market.
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Budget Trouble
Friction within Labour party in UK sent GBP lower against USD and EUR as fiscal concerns resurfaced. The move came on the back of PM Starmer’s failure to back Chancellor of the Exchequer following on u-turn on welfare reforms that would have saved GBP 5b leaving the Chancellor with a GBP 6b hole in budget. Bonds and Equities also took a hit, with 30yr yields rallying some 19bps.
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Tesla under pressure
Tesla started the week off plunging almost 7% into Tuesday, as the feud between Elon Musk & Donald Trump reignited. Tensions arose on social media after Musk criticized Trump’s “Big Beautiful Bill” & Trump responded with comments on Musk’s subsidies. Tesla Q2 deliveries dropped 13.5%, which came in below estimates & saw shares rise some 5%.
Podcast: Saxo Market Call

Saxo Quarterly Outlook
This week Saxo published the Q3 Investor outlook & Q3 Macro Outlook which covers some of the issues & highlights of the quarter to come. Read more below:
Q3 Macro Outlook:                Less chaos, and hopefully a bit more clarity
Q3 Investor Outlook:             Beyond American shores - why diversification is your strongest ally