Treasury Spike Pushes Borrowing Costs Higher

Shapiro Makes Data Centers Pay Their Own Way

Nixon Stuns Vindman in Florida Senate Upset

Apple's EU Fee Deal Gives U.S. Critics a Playbook

UAE Break With Iran Reshapes Middle East Alliances

Treasury Spike Pushes Borrowing Costs Higher

Households and businesses face higher borrowing costs after the yield on the 30-year U.S. Treasury bond climbed Tuesday to 5.333%, its highest level since June 2007. The average 30-year fixed mortgage rate reached 6.75%, while the S&P 500 fell for a third straight session. Traders pointed to oil prices near $90 a barrel after a U.S.-Iran agreement expired without a deal, along with persistent inflation, uncertainty about Federal Reserve policy and mounting federal debt. Bond yields rise when prices fall, reflecting investors' demand for greater returns when they lend money for long periods. If the increase persists, it could make mortgages and loans more expensive even though the Federal Reserve does not directly control long-term rates.

Quartz / The Hill / TheStreet

Shapiro Makes Data Centers Pay Their Own Way

Pennsylvania Gov. Josh Shapiro signed an order Tuesday requiring proposed data centers to provide their own power and pay the full cost of the electricity they use. Developers must draw a significant share of that power from clean sources, commit to local hiring and negotiate benefits for host communities. The order also removes data centers from expedited permitting, bars nondisclosure agreements and makes developers subject to penalties if they break their commitments. Shapiro said projects would not win state approval without local support, and his administration said only about five of more than 100 proposals in Pennsylvania are underway. The rules respond to concerns that fast-growing data center demand is raising electricity prices across the regional grid. The order could become a national test as artificial-intelligence infrastructure emerges as an issue in politically divided Pennsylvania and Shapiro is discussed as a possible 2028 presidential contender.

Pennsylvania Governor's Office / NBC Philadelphia

Nixon Stuns Vindman in Florida Senate Upset

Florida state Rep. Angie Nixon pulled off a major upset over retired Army Lt. Col. Alexander Vindman in Tuesday's Democratic primary for the state's U.S. Senate seat despite raising less than $1 million to Vindman's more than $16 million. Nixon, a Jacksonville Democrat who describes herself as a democratic socialist, led with about 56% of the vote after Vindman entered the race as the clear favorite. Vindman became nationally known after testifying in President Donald Trump's first impeachment inquiry. Nixon will face Republican Sen. Ashley Moody in November for the remainder of the term Marco Rubio left to become secretary of state. Her general-election path is steep because Florida has not elected a Democratic senator since 2012 and most forecasters do not consider the race competitive. The primary result nevertheless shows that a lesser-funded progressive candidate can defeat a nationally prominent rival among Democratic voters.

NBC News / The Hill / CNN / The 19th / CBS News

Apple's EU Fee Deal Gives U.S. Critics a Playbook

Apple's retreat on App Store fees in Europe gives U.S. developers and antitrust challengers a possible pathway for contesting rules that critics describe as monopolistic. Apple announced Tuesday that it would rewrite its European Union business terms to resolve a dispute over compliance with the bloc's Digital Markets Act. The company will eliminate a per-install charge on high-volume developers and replace it with a 5% commission on digital transactions inside apps distributed outside the App Store. Apple will also cut its standard EU commission on in-app purchases from 30% to 26%, eliminate two other fees on off-store apps and allow developers to offer Apple's payment system alongside alternatives. Developers could accept the terms beginning Tuesday, and the changes take effect Oct. 1 under monitoring by the European Commission. After a 500 million-euro fine and an unsuccessful court challenge, a lasting lower rate in a market of roughly 450 million people could give U.S. developers and antitrust plaintiffs a concrete precedent for challenging a central part of Apple's services business.

Apple / MacRumors / The Next Web

UAE Break With Iran Reshapes Middle East Alliances

The UAE's decision to sever commercial ties with Iran widens a Middle East realignment that is leaving Tehran more isolated and giving the Abraham Accords greater strategic weight. Abu Dhabi halted all trade and financial dealings with Iran on Wednesday after saying two ballistic missiles were launched from Iranian territory toward the UAE, though Iran denied responsibility and the launch site had not been independently verified. The UAE had also accused Tehran of attacking two state-owned oil vessels in the Strait of Hormuz days earlier. Saudi Arabia, Bahrain, Kuwait, Qatar and Jordan have joined the UAE in condemning Iranian attacks, while Oman has continued serving as a diplomatic channel to Tehran over shipping through the Strait of Hormuz. The UAE's move carries added weight because it normalized relations with Israel while Dubai remained Iran's leading trading partner and a key route around Western sanctions. A lasting break would pull a major Gulf economy closer to the U.S.-Israel alignment, increase pressure on Iran's economy and harden regional divisions as oil prices hover near $91 a barrel.

Al Jazeera / Yeni Şafak / The National / ABC News / CNN / AP / Emirates News Agency

AUGUST 19, 1953: CIA‑BACKED COUP TOPPLES IRAN’S DEMOCRATICALLY ELECTED LEADER

With funding and support from the United States and Britain, Iran’s military overthrew Prime Minister Mohammad Mosaddeq and restored the Shah to power, reversing Mosaddeq’s move to nationalize the country’s oil. The coup cemented Iran as a key U.S. Cold War ally for decades, but it also sowed deep anti-American resentment that helped fuel the 1979 Iranian Revolution.

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Sources

1. Quartz / The Hill / TheStreet
2. Pennsylvania Governor's Office: Executive Order / NBC Philadelphia / Pennsylvania Governor's Office: Grid Standards
3. NBC News / The Hill / CNN / The 19th / CBS News
4. Apple / MacRumors / The Next Web
5. Al Jazeera / Yeni Şafak / The National / ABC News / CNN / AP / AP: Hormuz Talks / Emirates News Agency