U.S. equity indexes teetered between positive and negative territory on Tuesday, as Speaker of the House Nancy Pelosi’s trip to Taiwan provoked rapid responses from China, including the announcement of military drills to take place Aug. 4-7 that will basically encircle the island. Taylor Fravel, the Arthur and Ruth Sloan Professor of Political Science and Director of the MIT Security Studies Program, joins Real Vision’s Andreas Steno Larsen at the top of today’s Daily Briefing to talk about what comes next in an increasingly fraught geopolitical situation. Meanwhile, San Francisco Federal Reserve President Mary Daly said the central bank is “nowhere near” being almost done fighting inflation, and bond yields were higher across the U.S. curve, with the 10-year making its biggest move since mid-June. Tony Greer of TG Macro joins Andreas to talk about recent price action and what happens to commodities markets if tensions between the U.S. and China over Taiwan boil over.