Melius Research: Raises target price for Cisco (CSCO.O) from $145 to $160.

U.S. July federal budget deficit widened to $432 bln, vs. $346 bln expected; June deficit was $120 bln.

The recent Mecca Mutual Defense Agreement signed by Saudi Arabia, Turkey, and Pakistan has sparked heated debate—is it building a competitive bloc that could challenge the US-led order, or exploring a new path of responsibility sharing within the US-led alliance system? While the three countries have long maintained security cooperation with the US, their respective interests differ, and joint action could reshape the regional power balance. Overall, this arrangement grants the three countries stronger autonomous deterrence capabilities—potentially reducing Washington's security burden and allowing allies to become more independent of the US. Southwestern Chiddi, an expert at the Foundation for the Defense of Democracy, expressed skepticism about whether the agreement constitutes a true NATO-style alliance. "Is it effective? Is it serious deterrence? Is it a Muslim NATO? We're not sure yet." He believes the three countries have different motives: Saudi Arabia is hedging its doubts about US security guarantees; Pakistan is using it to gain energy security, Saudi investment, and regional prestige; and Turkey is expanding its defense market and gaining leverage in its tensions with Israel. Chiddi points out that the agreement focuses more on economic and commercial cooperation than on a substantive security alliance. He also warned that even a militarily weak agreement could solidify opposing camps—"security agreements breed more security agreements," and countries like Israel and Greece might strengthen their cooperation in response. In his view, this move "buies security, but also creates tension." Raza Rumi, a Pakistani policy analyst and scholar at the City University of New York, warned against overinterpreting the agreement's mutual defense clauses—"Take it seriously, but don't really think of it as NATO's Fifth Article, at least not now." Its credibility depends on whether the three countries can develop joint planning, command structures, and crisis response procedures. Rumi also cautioned that the Middle East has not yet split into two fixed camps. "These countries are hedging, not choosing permanent camps," he said.