Borrowing costs hit multi-decade highs

Key takeaways

Iran considers expanding its military aggression into Europe if the US escalates conflicts, indicating rising geopolitical risks.
Global bond markets are experiencing a prolonged sell-off driven by inflation fears, high debt levels, and increased bond issuance from tech companies investing in AI, likely leading to higher borrowing costs worldwide.
Revolut's leadership is leveraging its rising valuation by increasing borrowing against its CEO’s stake, reflecting confidence in its continued growth.
Despite regulatory hurdles and political opposition under Trump, the renewable energy sector in the US is thriving, driven by market forces and legislative deadlines, with future prospects tied to political and supply chain factors.
Climate change is increasingly affecting Europe, with warming waters encouraging venomous marine species like the Portuguese Man O' War to invade beaches, highlighting ecological shifts in response to global warming.

Summary

Iran's Possible Expansion of Hostilities and Global Tensions

Insiders close to the Iranian regime indicate that Tehran may target US military assets in Europe if the US escalates its actions. The threat signifies a defiant stance amid stalled peace talks, with Iran implying an expanded war beyond the Middle East. This highlights the growing geopolitical instability and potential for increased conflict involving Iran.

Rising Global Bond Yields and Market Implications

A continued sell-off in long-term government bonds across major economies has driven yields to levels not seen in decades, driven by concerns over inflation, high government debt levels, and an influx of bonds from tech companies engaged in AI investments. The market anticipates that these trends will persist long-term, potentially raising borrowing costs worldwide, impacting government debt servicing and stock markets, with a risk of damaging a market rally.

Revolut's Financial Strategy and Growth

Revolut plans to significantly increase the amount CEO Nik Storonsky can borrow against his stake—by five times to $250 million—aiming to match its rising valuation. This move is framed as part of aligning corporate governance with the company's scale and success, as Revolut continues to grow rapidly and its founder's wealth increases.

US Political Actions and Renewable Energy Development Under Trump

Despite President Trump’s efforts to curb renewable energy—mainly through weakening tax incentives and delaying federal project permits—the sector has experienced an unexpected boom, with 2026 predicted to be a record year for new projects. This rise is partly due to the 'use it or lose it' deadlines for tax credits. Trump’s stance has mostly targeted offshore and onshore wind, but solar has integrated more seamlessly into energy strategies. Future growth relies on market demand, supply chain resilience, and political shifts, with potential setbacks if future administrations change policies.

The Increasing Threat of Venomous Marine Life in Europe’s Warming Waters

European beaches are experiencing an influx of Portuguese Man O' War, venomous jellyfish-like creatures, due to rising temperatures from global warming. These captivating yet dangerous creatures pose risks to beachgoers because of their long, barbed tentacles. The phenomenon underscores the broader impact of climate change on marine ecosystems and local tourism.

Show notes

Iran has weighed attacking US military targets in Europe should Donald Trump escalate the war, according to people close to the regime. Long-term borrowing costs across major economies hit multi-decade highs, and Revolut has proposed increasing the amount chief executive Nik Storonsky can borrow against his stake in the fintech fivefold. Plus, US President Donald Trump is presiding over an unlikely clean energy boom.

Mentioned in this podcast:

Iran eyes targets in Europe if US escalates war, insiders say

Government borrowing costs hit multi-decade highs

Revolut to let Nik Storonsky borrow up to $250mn against his stake

Trump’s renewables boom

Venomous sea creatures plague Europe’s warming beaches

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The FT News Briefing is produced by Victoria Craig, Sonja Hutson, and Saffeya Ahmed. Our show is mixed by Sam Giovinco and Alex Higgins. Additional help from Gavin Kallmann, Michael Lello, Peter Barber and David da Silva. Our executive producer is Topher Forhecz. Flo Phillips is the FT’s global head of audio. The show’s theme music is by Metaphor Music.

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