“Focus, patience, wise discernment, non-attachment —the skills you acquire in meditation and the skills you need to thrive in trading are one and the same.” — unknown

1. Iran’s Rial Hits Record Low — Iran’s currency hit a historic low of 100,000 rials to the dollar over the weekend. The collapse, which has seen the currency lose half its value in just four months, was encouraged by a deepening economic crisis and the imminent return of full U.S. sanctions. The penalties will be reimposed in two stages on Aug. 6 and Nov. 4, forcing many foreign firms to sever business ties with Tehran.
2. Japan, U.S., Australia Plan Infrastructure Push in Asia — forming a trilateral partnership, Australia and Japan have joined the U.S. in a push to invest in infrastructure projects in the Indo-Pacific region as China spends billions of dollars on its Belt and Road initiative across Asia. The investments will include energy, transportation, tourism and technology infrastructure, with the governments aiming to attract private capital to projects.
3. U.S.-China Trade War Back in Focus — the two countries are seeking to resume talks to defuse a tariff battle, according to Bloomberg, although later reports suggested the Trump administration plans to propose tariffs of 25% on $200B of imported Chinese goods after initially setting them at 10%. The Caixin-Markit PMI overnight also showed China’s manufacturing sector growing at its slowest pace in eight months in July, dragged down by declining export orders.
4. Molson Coors Canada and Hydropothecary Announces a Joint Venture — the Canadian unit of Molson Coors (NYSE:TAP) has entered a deal that will allow it to develop cannabis-infused beverages in the Great White North. It’s teaming up with Canadian cannabis producer Hydropothecary (OTCPK:HYYDF) to “participate in this exciting and rapidly expanding consumer segment.” Marijuana use in Canada will become legal later this year.
5. China Dethroned By Japan As World’s No. 2 Stock Market — an intensifying trade spat with the U.S. just led China to cede its four-year title as the world’s second-largest stock market to Japan. After a last week slump, Chinese equities were valued at US$6.09T, losing out to Japan’s $6.17T, while the U.S. remains the world’s largest with a market cap of $31T. The Shanghai Composite Index has lost more than 16% YTD to be among the world’s worst performers, while the yuan has fallen 5.3% against the dollar.
6. Apple Market Cap Over $1T — Apple hit a market cap of $1T last week, becoming the first publicly traded U.S. company to reach the milestone. Many credit the company’s growing software and services sales with driving the valuation. The catch-all category – which includes the App Store (NASDAQ:AAPL), AppleCare, Apple Pay, iTunes and cloud services – posted record revenue of $9.55B for the June quarter.

The week ahead — Economic data from Econoday.com: