* Joe Biden arrives in UK ahead of this week’s NATO summit in Lithuania
* Yellen says China talks ‘productive’ after meeting in Beijing
* This week’s US inflation report will bring new clues for Fed rate hike outlook
* China on brink of deflation
* US banks set to report biggest loan losses since pandemic
* Don’t rule a US recession out just yet, says Treasury Sec. Yellen
* US private-sector hiring in June eases to slowest pace in 2-1/2 years:

Real yields are rising again, posing a threat to stocks. “There’s a big risk that this real yield rise starts to damage the corporate sector,” says Salman Ahmed, global head of macro and strategic asset allocation at Fidelity International. “It’s a huge shock if you are refinancing right now.” Arun Sai, a senior multi-asset strategist at Pictet, advises: “What [stocks] are pricing in is that ultimately real rates will come off quite strongly in the next year,” said Arun Sai, a senior multi-asset strategist at Pictet. “But if real yields stay high it will be damaging to equities.”