WS #11505

The dominant theme in this window is the continued escalation of the Russia-Ukraine conflict, with a massive overnight missile and drone strike on Kyiv killing at least 11 people, hours after President Zelensky warned of an imminent attack. This comes just days after a strike killed 30, and ahead of the NATO summit in Turkey where Zelensky is expected to meet President Trump. The attack underscores Ukraine's critical shortage of Patriot interceptor missiles, a gap exacerbated by Middle East demand. Separately, OPEC+ announced a modest 188,000 bpd production increase for August, the fifth consecutive monthly rise, as oil prices remain under pressure near four-month lows. However, the Strait of Hormuz situation remains uncertain with traffic still below pre-war levels and talks on hold during Iran's funeral ceremonies. In corporate news, SK Hynix launches its ~$28 billion US listing, one of the largest ever, while Baillie Gifford, Coatue, and others expressed intention to buy up to $7 billion of its ADRs. Thales announced a €3.9 billion acquisition of Exail Technologies. NVIDIA's next-gen Kyber NVL144 rack is reportedly delayed to 2028 due to manufacturing challenges, a potential negative for the AI chip narrative. The yen continues to weaken, with a former top FX official saying it is undervalued by up to 20%, and Goldman Sachs revised its forecast to 165 per dollar. Bitcoin edges above $63K on improving macro backdrop, but the broader crypto market remains under pressure from Fed rate hike expectations. The narrative is one of escalating geopolitical risk (Ukraine, Middle East) countered by OPEC+ supply increases and a fragile Hormuz recovery, while AI-related supply chain issues (NVIDIA delay) and massive capital flows (SK Hynix IPO) create cross-currents.