Bloomberg Surveillance 8/3/2026

The episode covers the first US-Japan coordinated yen intervention since 2011, driven by concerns over Treasury yields and Japanese capital flows. Fed Chair Kevin Warsh's lack of forward guidance sparked a bond market selloff and inflation credibility shock, with multiple analysts calling for higher long-end yields and a September rate hike. Middle East tensions and shifting Iran strike-talk headlines added to oil volatility, while AI infrastructure spending continues to support semiconductor demand, with AMD highlighted as a preferred name, and SpaceX shares pressured by lockup and credibility concerns. - US and Japan jointly intervene to support the yen for the first time since 2011, aiming to stem rapid yen weakness and Treasury selling. - Fed Chair Warsh considering fewer policy meetings and offering no forward guidance, sparking long-end yield surge to levels not seen since 2007. - Multiple strategists describe an inflation credibility shock; BofA and RenMac expect the Fed to be forced into a September hike. - Oil prices swing wildly as President Trump alternates between threatening strikes on Iran and promoting new talks; Tehran denies negotiations. - AI semiconductor selloff seen as a buying opportunity by T. Rowe Price; AMD highlighted for CPU inferencing and accelerator strength. - SpaceX faces lockup expirations and CEO Elon Musk’s eroding credibility; Cleo Capital sees downside risk. - Upcoming July payrolls report (median 80k) seen as critical for determining whether the Fed can regain control.