Here are the key financial stories making headlines across global media overnight and this morning.

Fed Chair Warsh Reiterates Inflation Fight and Reform Commitment, Downplays CPI Data

Federal Reserve Chair Kevin Warsh stated that policymakers have zero tolerance for persistent high inflation, reiterating the commitment to curb the high inflation that has persisted for five years.

"Members of the Committee have zero tolerance for persistently high inflation," Warsh said in congressional testimony. "We are also united in our firm commitment to restore price stability."

Since taking office in May, the new Fed Chair has consistently emphasized the policymakers' commitment to controlling inflation, stating that the primary goal is setting the right monetary policy.

IBM Shares Plunge as Q2 Outlook Misses; CEO Admits Slow Response

IBM's preliminary second-quarter results released Tuesday before the market showed revenue and profit both falling short of market expectations. CEO Arvind Krishna admitted the company failed to adapt quickly enough to sharp changes in customer spending patterns. Consequently, IBM shares plummeted over 20% during the session, marking their largest single-day decline in decades.

IBM expects second-quarter revenue of approximately $17.2 billion, up 1% year-over-year but below analyst expectations of about $17.86 billion. Adjusted earnings per share are forecast at $2.93, also missing the market consensus of $3.01. By business segment, software revenue grew 5%, consulting was roughly flat, while infrastructure sales unexpectedly declined by about 7%.

OpenAI Developing AI Companion Smart Speaker as First Hardware Product

According to informed sources, OpenAI's highly anticipated first hardware device will be a portable, screenless smart speaker, positioned as a new type of home computer for the AI era.

The sources indicated the product, still under development, will serve as a home AI companion with human-like qualities. The device will help users control smart home devices, play media content, answer questions, respond to messages, and access the broad capabilities of ChatGPT.

This device represents a crucial step for the leading AI model developer into the hardware space.

Oracle Launches Unified AI Agent Building Tool

Oracle announced on Tuesday a new AI-native building experience for Oracle Fusion Cloud Applications, integrating no-code, low-code, and professional development tools on a single platform to help businesses and developers more easily create AI agent applications.

This new tool is part of the Oracle AI Agent Studio, supporting three development paths: business users can quickly build agents using natural language in a no-code environment; developers can use professional tools like Visual Studio Code, command-line interfaces, and Git-based workflows for development, with support for AI coding assistants like OpenAI Codex and Claude Code.

Fed's Bowman: Regulators Should Not 'Micromanage' Banks on AI and Innovation

Federal Reserve Vice Chair for Supervision Michelle Bowman stated that banks understand the risks associated with innovation better and should decide for themselves when to adopt new technologies like artificial intelligence.

"The decision of when and how to innovate rests with each bank and its management," Bowman said in prepared remarks for a financial inclusion conference. "They know their customers, their communities, and their risk appetites better than we do."

The Fed's top banking regulator added that the central bank should set clear expectations and maintain transparency around innovation, rather than micromanaging individual business decisions.

Foreign Holdings of US Treasuries Rose in May; Canada Led Increases

Foreign holdings of U.S. Treasury securities increased in May, with Canada—whose holdings can be volatile—showing the largest increase, while Japan's holdings declined.

Data released Tuesday by the U.S. Treasury Department showed foreign investors held $9.37 trillion in U.S. Treasuries in May, up $18.5 billion from the previous month, marking the second-highest level on record.

This data includes net sales and purchases as well as valuation changes. The Bloomberg U.S. Treasury Index rose a modest 0.1% in May, following a slight decline the previous month.