Russian Attacks on Grain Silos Drive Up Chicago Wheat Prices

CHICAGO – Wheat prices in Chicago saw a 4% increase on Wednesday following attacks by Russian drones on Ukrainian grain silos. The attacks have raised concerns about global food supplies. Maize prices also rose more than 2%, while soybean oil prices rose by 0.3%. Russian and Ukraine are two of the world’s largest grain exporters. Moscow’s attacks, combined with its recent cancellation of a grain shipment deal with Ukraine, have driven up prices.

Country Garden Services Stock Rises on Repurchase Plan

SHANGHAI – Country Garden Services Holdings, the property management arm of Chinese developer Country Garden, announced its plans to repurchase 10% of its shares. The move is meant to restore confidence after recent volatile trading. The company stated that its current trading price does not accurately reflect its intrinsic value and that the repurchase would demonstrate confidence in its long-term business prospects. Country Garden canceled a $300 million share placement earlier this week without explanation. Shares in the services arm rose 17% following the announcement.

Nomura Shares Decline Following Disappointing Earnings

HONG KONG – Shares in Nomura, the Japanese investment bank, dropped 8.5% after posting disappointing earnings and declining wholesale revenues. Net income for the three months ending June was ¥23.3 billion ($163 million), falling short of analysts’ forecasts. Revenue at the wholesale banking unit, which includes trading and investment banking operations, declined 4%, and profits slid 92%. Nomura shares later recovered slightly but were still on track for their biggest one-day decline since March 2021.

China Intensifies Rescue Efforts as Flooding Hits Beijing

HONG KONG – Rescue agencies in China are increasing their efforts as unprecedented floods hit Beijing and surrounding areas. The floods have caused at least 20 deaths and 33 people are reported missing. Hebei province recently released floodwaters from a local dam, which has sparked criticism for prioritizing the protection of the capital over rural areas. The Chinese government allocated Rmb110 million ($15.4 million) for rescue efforts. Over 1 million residents were evacuated in northern regions around Beijing, Tianjin, and Hebei.

Asian Equities Fall After Fitch Downgrades US Credit Rating

HONG KONG – Asian equities slumped and US Treasuries saw increased demand following Fitch Ratings’ decision to downgrade its assessment of US sovereign debt. Japan’s Topix dropped 0.5%, South Korea’s Kospi declined 0.3%, and Hong Kong’s Hang Seng fell by 0.8%. Fitch cited worsening fiscal conditions and governance as reasons for the downgrade. US Treasury yields also fell, as investors sought safe haven assets. The yields on 10-year and two-year notes stood at 4.017% and 4.887%, respectively.

Fitch Cuts US Credit Rating and Cites ‘Fiscal Deterioration’

NEW YORK – Fitch Ratings downgraded the US’s credit rating from triple A to double A plus, citing expected fiscal deterioration, a high and growing government debt burden, and eroding governance over the last two decades. Fitch’s decision comes after the recent lifting of the federal borrowing limit, which narrowly prevented a default after months of spending cut discussions.