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New Jersey Lawmakers Pass Bill To Establish Large Load Data Center Tariff

By Zachary Skidmore of DataCenterDynamics

New Jersey lawmakers have passed a bill that will direct the state's Board of Public Utilities (PUC) to establish a dedicated data center tariff for facilities with a capacity of 50MW or more, in an attempt to shield other ratepayers from cost increases tied to new builds.

A similar bill was originally proposed in June of last year by Democratic assemblymen Dave Bailey and Joe Danielsen. However, that initial bill was pocket-vetoed by then-governor Phil Murphy, who did not sign it before his term ended.

CoreSite’s NY3 data center is located in Secaucus and offers more than 138,000 square feet of capacity.CoreSite

Following the veto, the bill was replaced with S731, which proposed broader protections than the previous bill. It will now head to Democratic governor Mikie Sherrill for final approval. Assemblyman David Bailey Jr. said Sherrill's office was involved in drafting the latest version and expressed optimism she would sign it.

The new bill is broader than the previously vetoed bill, applying to both existing and new facilities, and lowering the threshold from 100MW. It also aggregates facilities that are under common ownership or on contiguous sites, treating them as a single large data center for purposes of the threshold.

Other provisions in the bill include requiring data centers to demonstrate their project is not proposed elsewhere to avoid speculative applications, providing financial guarantees to take or pay for at least 85 percent of the requested service for ten years, and committing to demand response and flexibility programs. In addition, the bill mandates that large data center customers be curtailed before residential customers during grid emergencies.

It will also require the PUC to prioritize interconnection for data centers that make binding commitments to bring their own clean generation or storage.

The bill is the latest to be passed within a state legislature, with several already enshrined in law, and many others currently making their way through the approval process.

Last month, regulators in Oregon approved a new rate class for data centers and other large loads, which is now in effect.

Before this, Oklahoma’s governor, Kevin Stitt, signed into law a new bill aimed at protecting ratepayers in the state from rising utility and infrastructure costs associated with data centers. This closely followed Florida, whose governor signed into law a similar bill that prohibited utilities from passing data center infrastructure costs on to residential and small-business ratepayers and required large-scale users to bear their full cost of service.

Other states to see similar rules proposed and passed include Ohio, North Carolina, and Virginia, to name a few.

Tyler Durden Mon, 07/06/2026 - 12:05

Truck Driver Accused Of Using Fake Documents To Steal $2.9 Million Cargo

By Phil Bring of FreightWaves

Police in Greenfield, Indiana, arrested a California truck driver after officers recovered nearly $2.9 million worth of tungsten oxide powder that police said thieves stole during a cargo theft in Pennsylvania.

According to a June 28 news release from the Greenfield Police Department, officers received an alert around 6 a.m. Saturday regarding a wanted semi tractor-trailer traveling eastbound on Interstate 70 into Hancock County. Police said the truck was connected to a cargo theft that occurred in Pennsylvania on June 25. Officers located the truck and trailer just west of the Greenfield exit at mile marker 104, confirmed the information and conducted a traffic stop.

Police identified the driver as 31-year-old Deepak Kumar of Fresno, California. Authorities said Kumar used fraudulent documents to obtain a load of nearly 40,000 pounds of tungsten oxide powder. Police valued the shipment at $2,857,500 and said it was headed to Mitsubishi Materials Corporation in Japan.

Deepak Kumar, 31, of Fresno, California, was arrested June 27 after Greenfield police recovered a shipment of tungsten oxide powder valued at about $2.9 million. Police said Kumar faces theft-related charges in Pennsylvania. Source: Greenfield Police Department

Greenfield police arrested Kumar at the scene on an active arrest warrant issued by the state of Pennsylvania. According to police, the warrant charges Kumar with theft by unlawful taking of movable property and criminal use of a communication facility.

Officers transported Kumar to the Hancock County Jail following the arrest. Police said the Hancock County Prosecutor’s Office will determine whether Kumar will face criminal charges in Indiana related to the traffic stop and evidence recovered during the subsequent search warrant.

Police said officers impounded the truck and trailer through Inman’s Towing of Greenfield following the traffic stop. Investigators held both as evidence while they requested a search warrant. After a judge issued the warrant, officers searched the trailer and confirmed it contained the reported stolen cargo.

According to police, a representative of Mitsubishi Materials Corporation traveled to Greenfield on Sunday and took possession of the recovered shipment.

The Greenfield Police Department has not identified the Pennsylvania business where investigators allege the cargo theft occurred. Authorities also have not released additional information describing the fraudulent documents investigators said Kumar used to obtain the cargo.

Police have not identified additional suspects or released court documents describing the alleged cargo theft. The department said the Hancock County Prosecutor’s Office will determine whether Kumar will face additional criminal charges in Indiana related to the traffic stop and the evidence recovered during the search warrant.

Tyler Durden Mon, 07/06/2026 - 11:25

Saudi Arabia Sells Oil At A Discount For The First Time Since COVID Crash, As China Demand Collapses

We previously discussed the unprecedented collapse observed in recent months in Chinese oil demand and imports, which led to the bizarre scenario where even Iran can't find buyers (read China) for its temporarily unsanctioned oil armada (see "Iran Runs Into Big Problem: No Buyers For Its Oil, As Full Tankers Pile Up Off China") and which prompted even JPM to point out that something bigger is going on behind the scenes.

"The scale of China's oil demand collapse has been so dramatic that Chinese policymakers are reportedly examining whether this historic slump reflects a temporary response to elevated global prices or a more structural shift in consumption patterns." - JPM

— zerohedge (@zerohedge) July 4, 2026

Understandably, with such a huge source of demand sidelined, today Bloomberg reported that Saudi Arabia has made big reductions to its main crude oil prices for buyers in Asia, selling barrels at a discount for the first time since it embarked on a price war in 2020, as a surge of global supply heightens competition to find buyers.

State producer Saudi Aramco will lower Arab Light oil for next month by $11 a barrel to a $1.50 discount over the regional benchmark, according to a price list seen by Bloomberg. The last two times it sold the grade at a discount were during price wars in 2020 and 2015.

The large drop in prices, the biggest in at least 26 years, follows a surge at the height of the Iran war when the disruption to the Strait of Hormuz restricted the kingdom’s flows; it is also bigger than the $8 decline expected in a Bloomberg survey.

The surprise price cut underscores the surging volumes of oil that are now available on global markets, as the interim US-Iran peace deal enables Gulf producers to ramp up exports at the same time as a flood of trapped barrels escape through the Strait of Hormuz. The size of the cutback also raises questions whether other Middle East producers might be forced into steeper cuts to their prices as they compete for customers (mostly China, as India is quite happy importing cheap Russian oil) that are inundated with supply.

Aramco’s August prices are for buyers who purchase crude on long-term contracts, the main way in which the kingdom markets its barrels. Some traders who spoke to Bloomberg said even with such a large reduction, the barrels are more expensive than spot supplies from other regional producers that are available for immediate purchase on an adhoc basis.

According to Bloomberg, official prices from other producers in the region are expected to be released in the coming days.

Oil has plunged since the agreement between US and Iran came into effect in the middle of June, allowing traffic to resume through the Strait of Hormuz, the key chokepoint that had been largely blocked since the start of hostilities. Brent crude has given up all its wartime gains, and was trading below $72 a barrel on Tuesday.

Before the war, Saudi Arabia loaded most of its crude from within the Persian Gulf. However, Aramco diverted a chunk of those flows to its Red Sea facility at Yanbu as the war effectively blocked Hormuz. The kingdom made the rare move of selling some cargoes on a so-called spot basis in recent days, as it got resumed flows of shipments that had been trapped inside the Persian Gulf.

Tyler Durden Mon, 07/06/2026 - 11:10

'Restraining Order Needed': Trump Again Taunts Italy's Meloni, Ahead Of NATO Summit

There's no time like the eve of the major annual NATO summit for Trump to reignite his longstanding feud with Italian prime minister Giorgia Meloni, apparently. The American President blasted out the below Truth Social just before heading to Ankara, Turkey for the gathering of NATO heads...

With just a few days to go before the next NATO summit, POTUS Donald Trump has once again attacked the Italian Prime Minister, Giorgia Meloni.

He portrays her as worshipful and calls for a “restraining order” to be imposed on her.

A few weeks ago, Trump had said that Meloni… pic.twitter.com/hHJTn8yCra

— Crazy Ass Moments in Italian Politics (@CrazyItalianPol) July 5, 2026

The doctored image featuring the caption "Restraining order needed" marks but the latest escalation between to the two leaders. Meloni has not responded or commented directly regarding the Truth Social Post, and is unlikely to given that Italy likely wants to avoid escalation.

"People come and go but relations must endure," Italian Defense Minister Guido Crosetto remarked on the prime minister still being in Trump's crosshairs to news channel Sky TG24. And Foreign Minister Antonio Tajani tried to brush it off while presenting an optimistic picture of future relations, saying he was "sure that transatlantic relations go well beyond individual comments."

This new post follows on another Truth Social post from June, in which Trump accused the Italian PM of asking for a picture with him "over and over" at the G7 Summit in France.

At heart of the feud is Italy's breaking with Trump over his Iran operation. This has included denying shared base usage for American military flights connected with Operation Epic Fury.

Trump had claimed earlier in the summer of Meloni, "She is doing poorly in Italy with her level of popularity, possibly because she turned down the United States of America, a Country that truly loves and protects Italy, when it came to denying Iran from obtaining or developing a Nuclear Weapon."

He then suggested that Meloni wanted to be "friends again" to get her "numbers up" - but has appeared to stipulate that she must fully open up Italian bases for US aircraft usage once again.

Meloni in response to the prior June post slammed the US president for his "senseless" and "constant, unprovoked attacks".

via Anadolu Agency

"As for my popularity, being your friend has certainly not helped it, nor does it depend on my relationship with you," she shot back. "My popularity is none of your concern. I suggest you focus on yours."

All of this could serve to make any close-quarter contact at the NATO summit in Ankara very awkward - also as the two will certainly be in the same general vicinity for events like the group photo.

Tyler Durden Mon, 07/06/2026 - 10:35

US Services Surveys Show Continued Expansion In June: Jobs Up, Inflation Down

Following US manufacturing small dip in June (though still expanding), the US Services sector PMI surveys are a little more mixed but both still solidly in expansion in June:

• S&P Global US Services PMI ticking up on the month from 50.7 to 51.2 (but a smidge below the 51.3 flash print)

• ISM US Services PMI dipped from 54.5 to 54 (in line with expectations)

“A slight acceleration of business growth in the services economy takes the expansion to the strongest since the outbreak of the war in the Middle East," says Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, "though the pace of growth remains lacklustre compared to that seen at the start of the year before the conflict."

The survey data are hence broadly indicative of the economy only growing at a 1.2% annualized rate over the second quarter...

Similarly, while business growth expectations for the year ahead improved in June, they remained subdued compared to that seen prior to the war as businesses lack clarity over the outlook, both from economic and geopolitical contexts.

Here's what ISM Respondents are saying...

• “We continue to experience higher prices due to the Persian Gulf conflict through rising diesel fuel costs and increased input costs for resin-based packaging. The brunt of the impact will be experienced in the third quarter (Q3) of 2026, but we are feeling the impact now. Suppliers are aggressively attempting to pass through price increases.” [Accommodation & Food Services]

• “Extreme drought in Virginia is creating financial problems for farmers and the agricultural industry. Dramatically reduced spring crops harvest has created significant cost increases in feed expense. The barley grain crop was nearly totally lost due to the early hot weather and spring freeze. High fertilizer cost increases due to the war in Iran and increased freight cost has driven cost for crops above breakeven levels on many farms. Many dairy farmers are struggling with crop shortages, high input cost and below milk price breakeven. The financial stress from higher cost due to the Iran war and drought-related forage losses has resulted in decreased spending in the agricultural sector.” [Agriculture, Forestry, Fishing & Hunting]

• “In general, our company (commercial construction) is doing well. Pipeline is healthy for current and future work. Material pricing is higher and lead times on certain components in support of data center piping is elongating.” [Construction]

• “In addition to the known semiconductor manufacturing issue, now there are concerns regarding memory availability that is materially impacting our OEM’s purchasing patterns, which is affecting availability and driving my company’s purchasing decisions, including how much longer we are sweating our assets, how frequently we refresh, and how we approach maintenance contracts.” [Finance & Insurance]

• “Despite economic headwinds like persistent inflation, patient volumes and overall business activity remain strong reflected mainly by outstanding revenue performance. Supply chains remain resilient as well; back orders are at a historical low, and few if any critical products are experiencing difficulties. Labor is steady, as we continue to add full-time workers while the forecast remains positive. Given the continuation of the conflict in the Middle East, we are beginning to hear that cost of goods increases are on the horizon but have yet to materialize. Cost increases are in focus for the next quarter.” [Health Care & Social Assistance]

• “From a strategic supply chain perspective, we are seeing increased complexity in managing total landed cost due to tariffs, import/export constraints and duty recovery mechanisms, requiring more proactive coordination across sourcing, logistics and compliance teams. Recent discussions internally also highlight the impact of tariff programs and duty drawback evaluations on purchasing strategies.” [Mining]

• “Demand remains strong in infrastructure, environmental, and resilience projects, while procurement faces persistent labor inflation, supplier capacity constraints, and regulatory complexity—particularly in California and other high-cost markets. Labor-driven categories remain elevated despite easing goods inflation. The impact is higher rates, longer lead times, and increased importance of capacity assurance vs. lowest-cost sourcing.” [Professional, Scientific & Technical Services]

• “Business has been very strong during what is usually a less active time of the year. Pricing is stable, and employment just where we want it to be. Supply chain strong with no challenges.” [Retail Trade]

• “The utility industry continues to experience extended lead times, supply-chain constraints, material shortages, and pricing volatility. As a result, suppliers are often limiting quotation validity periods, with many RFQs carrying expiration dates as short as 24 hours. These conditions require timely evaluation and procurement decisions to mitigate the risk of price changes and availability issues.” [Utilities]

• “We are experiencing continued sequential top-line growth driven mostly by increased prices.” [Wholesale Trade]

• “In addition to the known semiconductor manufacturing issue, now there are concerns regarding memory availability that is materially impacting our OEM’s purchasing patterns, which is affecting availability and driving my company’s purchasing decisions, including how much longer we are sweating our assets, how frequently we refresh, and how we approach maintenance contracts.” [Finance & Insurance]

Williamson notes that the prospect of higher interest rates also acted as a further headwind to growth, notably in the financial service sector, where business expectations remain especially muted, adding that “a key underlying factor behind the relatively subdued performance of the services economy was again elevated price pressures."

Although easing slightly, aided largely by lower oil prices, costs continued to rise at a steep rate in June, driving up rates levied for services.

Customer push-back against these high prices was again widely reported, most notably in consumer-facing businesses.

But Williamson concludes that "consumer-facing companies are nevertheless reporting that further price falls should help stimulate sales in the months ahead, providing a ray of hope for both the growth and inflation outlooks.”

Tyler Durden Mon, 07/06/2026 - 10:10

Key Events This Week: ISM, FOMC Minutes And Fed Speakers

The week after payrolls is usually a quieter affair but there's plenty of global events even if the US calendar is light.

In terms of the main highlights, given the current focus on monetary policy the FOMC minutes (Wednesday) and the ECB’s June meeting account (Thursday) will be carefully watched, especially the former given it was the first of the new Warsh regime. Speeches from Fed Governors Waller (Monday), Williams and Logan (Thursday) will provide a more "live" update to the committees' thinking. Elsewhere, China inflation data (Thursday) and a run of German activity indicators including factory orders (today), industrial production (tomorrow) and trade (Thursday) are worth tracking. German reforms in recent weeks have offered some renewed optimism that we will finally see the benefits of the huge fiscal spending and reform agenda after skepticism had been building. Geopolitically, the NATO summit (Tuesday–Wednesday) will also be in focus, with Trump in attendance, and could generate plenty of headlines.

In terms of other data and events, today sees ISM services (Monday) which follows the recent weakness in manufacturing, where DB economists expect a modest improvement. Most of the other data in the US is second tier but includes existing home sales on Thursday. Outside of the US, the BoE’s financial stability report (tomorrow) will be interesting, while inflation prints from Sweden (Wednesday) and Denmark and Norway (Friday) deserve a glance. In Japan, the data flow includes labor cash earnings and household spending (tomorrow), the Economy Watchers survey (Wednesday) and PPI (Friday). Elsewhere, we will see the RBNZ policy decision (Wednesday), where economists expect a rate hike, and Canada’s labor market report (Friday).

Courtesy of DB, here is a day-by-day calendar of events

Monday July 6

• Data: US June ISM services, UK June new car registrations, construction PMI, Germany May factory orders, June construction PMI, Eurozone May PPI, retail sales, Canada June services PMI
• Central banks: Fed’s Waller speaks, ECB's Schnabel, Wunsch and Lane speak, BoE’s Mann speaks, BoC business outlook

Tuesday July 7

• Data: US May trade balance, China June foreign reserves, Japan May labor cash earnings, household spending, leading index, coincident index, Germany May industrial production, France May trade balance, Canada May international merchandise trade
• Central banks: ECB's Panetta and Kocher speak, BoE’s financial stability report
• Auctions: US 3-yr Notes ($58bn)
• Other: NATO summit (through July 8), French Court ruling on Marine Le Pen’s eligibility to run for President

Wednesday July 8

• Data: US May wholesale trade sales, consumer credit, Japan May BoP current account balance, BoP trade balance, June bank lending, Economy Watchers survey, France May current account balance, Sweden June CPI, May GDP indicator 
• Central banks: FOMC minutes, ECB's Kocher, Moulin, Nagel and Dolenc speak, RBNZ decision
• Auctions: US 10-yr Notes (reopening, $39bn)

Thursday July 9

• Data: US June existing home sales, initial jobless claims, China June CPI, PPI, UK June RICS house price balance, Japan June M2, M3, machine tool orders, Germany May trade balance
• Central banks: ECB’s account of the June meeting, Fed's Williams and Logan speak, BoE’s Breeden speaks
• Earnings: PepsiCo
• Auctions: US 30-yr Bond (reopening, $22bn)

Friday July 10

• Data: Japan June PPI, Italy May industrial production, Canada June labour force survey, May building permits, Denmark June CPI, Norway June CPI
• Central banks: ECB’s Vujcic and Stournaras speak
• Earnings: Delta Air Lines

Looking at the US, Goldman writes that the key economic data release this week is the ISM services index on Monday. There are a few speaking engagements with Fed officials this week, including events with Governor Waller and Presidents Williams and Logan. The minutes to the FOMC’s June meeting will be released on Wednesday.

Monday, July 6 

• 09:45 AM S&P Global US services PMI, June final (consensus 51.3, last 51.3)
• 10:00 AM ISM services index, June (GS 54.0, consensus 54.0, last 54.5): We estimate that the ISM services index declined to 54.0 in June. Our non-manufacturing survey tracker was unchanged in June but remained below the latest ISM services reading at 52.9.
• 11:00 AM Fed Governor Waller speaks: Fed Governor Christopher Waller will take part in a policy panel at a conference in Rome. On May 22, Waller said that while he did not think the FOMC should hike “in the near future,” he could “no longer rule out rate hikes further down the road if inflation does not abate soon,” especially if inflation expectations showed “signs of becoming unanchored.” At the same time, Waller said there would need to be “improvement on inflation or a significant deterioration in the labor market” for him to support cuts. 

Tuesday, July 7 

• 08:30 AM Trade balance, May (GS -$78.5bn, consensus -$78.8bn, last -$55.9bn)

Wednesday, July 8 

• 10:00 AM Wholesale inventories, May final (last +0.3%)
• 02:00 PM FOMC meeting minutes, June 16-17 meeting: The FOMC left the funds rate unchanged at 3.5-3.75% and removed the previous forward guidance suggesting cuts from its statement at the June FOMC meeting. But the meeting delivered a hawkish surprise, with nine participants projecting a hike in 2026 (vs. our expectation of three). That said, we suspect that FOMC participants treated the news about a deal with Iran and the reopening of the Strait of Hormuz—which emerged only a few days before the meeting—cautiously. Chairman Warsh also noted earlier this week that “inflation expectations have come down, and inflation risks have come down” at a panel discussion in Sintra, Portugal. We will look for details in the minutes on the assumptions underlying participants’ economic outlook and views of the balance of risks at the time.

Thursday, July 9 

• 08:30 AM Initial jobless claims, week ended July 3 (GS 225k, consensus 220k, last 215k); Continuing jobless claims, week ended June 27 (consensus 1,815k, last 1,814k)
• 09:00 AM New York Fed President Williams (FOMC voter) speaks: New York Fed President John Williams will take part in a moderated discussion at a conference on market liquidity and functioning hosted by the New York Fed and The Clark Center for Global Markets at the University of Chicago Booth School of Business. On June 25, Williams said that the current stance of monetary policy was “well positioned” to restore inflation to the Fed’s 2% target. Williams said he expected inflation to “edge down” as tariff effects faded, supply disruptions from the Middle East got resolved, and slow rent growth translated into a lower pace of shelter inflation. He noted that medium-term inflation expectations “have remained well anchored through May.” 
• 10:00 AM Existing home sales, June (GS +2.5%, consensus +0.7%, last +3.2%)
• 01:30 PM Dallas Fed President Logan (FOMC voter) speaks: Dallas Fed President Lorie Logan will moderate a panel on market liquidity at a conference hosted by the New York Fed and The Clark Center for Global Markets at the University of Chicago Booth School of Business. On June 3, Logan noted that “inflation appears to be trending toward the mid 2’s—not all the way back to 2 percent” and that “above-target inflation can become entrenched if it persists too long.” At the same time, Logan said economic activity “remains strong,” financial conditions are “accommodative,” and the labor market “appears stable and broadly balanced.” Logan stressed she was “increasingly concerned that higher interest rates could be necessary later this year to fully restore price stability and appropriately balance both sides of the Fed’s dual mandate.”

Friday, July 10 

• There are no major economic data releases scheduled.

Source: DB, GS, Barc

Tyler Durden Mon, 07/06/2026 - 09:45

Russia & Ukraine Trade Some Of Biggest Strikes Of War On Eve Of NATO Summit

Russia has unleashed another massive drone and missile attack wave on Ukraine's capital, just on the eve of the major annual NATO summit, which is in Ankara, Turkey this week.

Over a dozen people were killed, with heavy damage against residential structures observed. The death toll could rise, but "In total, 14 people have died and 117 have been injured in Kyiv," the office of the attorney general said on Monday morning. Rescue crews have been retrieving bodies from under rubble throughout Monday.

via Associated Press

The Russian Defense ‌Ministry announced that it used long-range weapons ‌and drones to carry out a "massive" attack on ​Kiev and other cities, saying that military bases and energy facilities were successfully struck.

According to details of the timing of the attack wave:

The Kyiv Independent reported that the first explosions were heard at about 1:40am local time, followed by more strikes at 2:10am and 3:15am.

Thousands of residents fled to underground shelters, it reported, as air raid sirens sounded across Ukraine. At least 15 buildings were damaged in Kyiv in the strikes, including four in the capital’s historic Podilskyi district, Tkachenko said.

As for the significant numbers of projectiles focused on the Ukrainian capital alone, another source reports:

Ukraine's air force said Russia used 68 missiles, including 23 ballistic and six super and hypersonic missiles, as well as 351 drones in the attack. Air force units shot down or neutralized 37 missiles and 326 drones, but none of the ballistic missiles or super and hypersonic missiles, the air force data showed.

Neighboring Poland briefly scrambled fighter ​jets as a preventive measure.

Rumors of warehouse with depleted uranium having been struck...

According to Kyiv sources, Russia may hit a military warehouse with depleted uranium-238 ammunition. This is why residents were ordered to stay indoors and keep windows closed. The small town of Vyshneve is being fully evacuated. The detonation is still ongoing.

This could have… pic.twitter.com/LlZQFlDxsB

— Diana Panchenko 🇺🇦 (@Panchenko_X) July 6, 2026

Rumors persist...

DEPLETED URANIUM FEARS AFTER STRIKE NEAR kiev: 600 EVACUATED

More than 600 people have reportedly been evacuated from the outskirts of kiev following an overnight strike on a storage facility containing depleted uranium ammunition for Abrams tanks.

The depot, located in the… pic.twitter.com/pePX4wsWxU

— Russian Market (@runews) July 6, 2026

But Ukraine has been launching its own significant drone salvos against Russia, with devastating effect against its energy infrastructure.

In its second large-scale attack in under a week, drones were sent against an oil terminal and port in St. Petersburg, with damage being observed in the Baltic Sea ports of Vysotsk and Ust-Luga. More attacks also impacted Sevastopol on the Black Sea, resulting in a power blackout there.

Russia hit something big in Kiev pic.twitter.com/YFAeX2QFU8

— Glenn Diesen (@Glenn_Diesen) July 6, 2026

According to some further details in CBNC being reported:

Ukrainian officials reported that forces struck a major oil terminal in Russia’s second-largest city, St. Petersburg, as well as the Kronstadt Naval Base, the main base of the Russian Baltic Fleet, on Friday and Saturday. The attacks reportedly caused fires at both the oil terminal and the military facility.

Further Ukrainian attacks on Russian energy infrastructure were reported on Monday morning. Ukraine’s military said via Telegram that it had struck oil refineries in Russia’s Yaroslavl and Leningrad regions overnight. CNBC couldn’t independently verify the report.

It was only on Saturday that President Trump said he had a "business-like and constructive" nearly 90-minute phone call with his Russian counterpart Putin.

The prospect of renewed US mediation efforts to find peace in the Ukraine conflict was discussed, and Trump was even (once again) invited to visit Russia for an in-person summit.

Ukrainian drone attacks damaged Russia’s Baltic Sea ports of Vysotsk and Ust-Luga, a major oil export outlet, Reuters reported. Leningrad region’s governor claimed 56 drones were downed, with debris recorded near Ust-Luga port and the Luga training ground. #Ukraine pic.twitter.com/8QJ5zKEoSN

— NOELREPORTS 🇪🇺 🇺🇦 (@NOELreports) July 6, 2026

While the prospect of renewed talks and diplomatic effort was raised, the two warring sides seem further from dialogue than ever, and the Zelensky government is finally sensing that it has found a 'weak point' - hammering Russian energy and creating a national fuel shortage crisis.

Tyler Durden Mon, 07/06/2026 - 09:30

When A Toll Isn't A Toll

By Benjamin Picton, senior market strategist at Rabobank

When A Toll Isn't A Toll

Yields on 10-year Treasuries finished last week up 11bps to 4.48% while yields on 10-year Bunds rose 8.5bps to 2.93%. Those higher borrowing costs came despite signs of weakening in the US jobs market, a weaker-than-expected prices paid figure on the ISM manufacturing index, and a surprisingly weak Eurozone CPI inflation report that follows in the wake of lower than expected inflation readings in the UK.

Market-based expectations of the future path of the Fed Funds rate finished the week a little lower than it started, with pricing of a future rate hike pushed out from October to December. 2-year Treasury yields fell by almost 4bps on Thursday after the payrolls report confirmed hiring in June was little better than half the expected figure.

This was still enough for the unemployment rate to tick down to 4.2% as a lower participation rate saw the labor force contract. Nevertheless, 2-year yields were higher across the week as sovereign curves bear-steepened.

Brent crude posted its first weekly gain in almost a month last week to see the front contract close up 0.18% at $72.12/bbl. The gains appear to have been short-lived as news of continued tanker flows through the Strait of Hormuz and a decision by OPEC+ over the weekend to ease production restrictions by 188,000 barrels/day from August steer the price action lower this morning. Announcements of increased production are all well and good, but when much of that production is occurring in the Persian Gulf or in Russia (where Ukrainian strikes against oil infrastructure are ongoing) the ability to actually ship the product to market will remain the critical limiting factor.

On that note, official figures show that Hormuz traffic is back to approximately 30% of pre-war levels, though this likely understates the true picture as many vessels are transiting dark (i.e. without their tracking systems on) to avoid the attentions of Iran’s IRGC. Bloomberg reports that six vessels transited the route closest to the Omani coastline under US auspices on Sunday without incident. That follows reports of up to eight vessels performing u-turns (with some later being redirected through the Iranian route) after attempting to transit close to Oman on Friday and Saturday.

Updated data from Kpler and Vortexa shows that crude exports from the UAE surged in June to exceed pre-war levels and approach record highs. The UAE’s recent decision to leave OPEC and OPEC+ is considered bearish over the longer term for energy prices as a diminished share of potential production is subject to non-market constraints.

On the other hand, Iran again indicated over the weekend that it will be instituting “service fees” on vessels transiting Hormuz through its territorial waters once the 60-day negotiating period kicked-off by the signing of the Iran-US memorandum of understanding expires. According to Iran’s ambassador to China a new fee regime is being designed in consultation with Oman and will include “special considerations” for China and other friendly nations in determining the level and type of fee applied. According to the ambassador, this is not a toll. This might prove be a convenient fiction for all parties given President Trump’s unyielding view that a permanent toll regime would not be acceptable after the 60-day negotiating period expires.

Critically, what this little titbit sets up is exactly the type of scenario we have been pointing towards for some time: the ‘oil market’ splitting into ‘oil markets’ with terms over pricing and access being determined by which geopolitical camp you happen to sit in, and a series of quid pro quos informing the deal that each party gets.

The prime movers here are the United States and China, with Iran having clearly chosen China and the UAE hitching its wagon to the US of A. An easy tell that this scenario is playing out will be pressure from Iran to have other Gulf producers accept a toll that isn’t a toll, and/or have their cargoes priced in CNY rather than USD. The USA, similarly, will pressure Gulf allies to price in Dollars and normalize relations with Israel to expand the Abraham Accords and have oil flow from east to west to cut out Iran entirely and demonstrate to China that Uncle Sam can step on the hose whenever he likes.

Europe and the balance of Asia are likely to be reduced to the role of spectators in these affairs. Highlighting the weakness of Europe’s current position in the Great Game, the Wall Street Journal carried a story last week on how the German Mittelstand is being decimated by state-backed Chinese competition, with the most energy-exposed sectors of the manufacturing economy faring particularly badly.

To a certain extent, the hollowing out of German industry at the hands of China mirrors the hollowing-out of British finance at the hands of the United States as more and more firms choose to list in New York in pursuit of higher multiples or are bought-up as value picks. This has elicited a response from the British Government in the form of the Mansion House compact aimed at encouraging pension funds to hold more British assets. If that fails, will the discussion then turn to capital controls under an Andy Burnham premiership?

Similarly, the rapid decline of the German Mittelstand will almost certainly elicit further protectionist measures from officials in Brussels who have just spent the last 18 months and more criticizing Washington for taking similar steps to protect American industry. In the absence of a hold-your-nose peace accord with Russia to reduce energy costs that will almost certainly not happen, what is Europe’s grand macro strategy to avoid being de-industrialised by China and vassalized by US energy and finance?

Tyler Durden Mon, 07/06/2026 - 09:15

Porsche To Eliminate 4,000 Jobs In Germany: Report

Germany was once the industrial engine of Europe, but years of disastrous climate change policies, high energy costs, and left-wing economic mismanagement have battered its manufacturing base. This pressure has been roiling the country's auto industry, where struggling carmakers are restructuring operations through workforce reductions, production cuts, and capacity reductions.

Germany's top financial newspaper, Handelsblatt, reports that Porsche is preparing another round of deep job cuts at its main factories as the sports car maker grapples with weak demand.

The company is considering eliminating as many as 4,000 additional jobs at its Zuffenhausen plant, the outlet said, citing people familiar with the matter. These reductions would come on top of previously agreed cuts impacting 3,900 jobs.

Porsche's Zuffenhausen plant in Stuttgart is home to the brand's core sports car production lines, including the 911, 718, and Taycan.

Administration and management roles are expected to be reduced the most, while Porsche may also cut capacity at its Weissach development site by up to 30%.

Last month, Porsche CEO Michael Leiters said the company plans to produce at a lower capacity than the roughly 280,000 cars sold last year. He stated that the company must "make money with fewer cars."

Porsche's profit eroded further in the first quarter as the automaker faced mounting pressure from tariffs, geopolitical turmoil, and gaps in its model lineup. The emergence of Chinese EV giants like BYD and Chery in Europe is another troubling development for EU automakers.

Porsche is part of the Volkswagen Group, where the VW CEO recently warned that more than 100,000 jobs could be eliminated in a massive overhaul.

Tyler Durden Mon, 07/06/2026 - 09:00

Saylor's Strategy Sells 3,588 Bitcoin To Cover Preferred Dividends

Authored by Micah Zimmerman via Bitcoin Magazine.com,

Strategy sold 3,588 bitcoin for $216 million to fund dividends on its preferred securities, the company disclosed in a Form 8-K on July 6, 2026.

The sale marks the largest bitcoin disposal in the company’s history and its most direct admission that its dividend obligations now shape its treasury.

Chairman Michael Saylor posted about the transaction on social media. As of July 5, the company held 843,775 bitcoin in its reserves and $2.55 billion in cash. Saylor said the proceeds covered second-quarter dividends on four preferred instruments and the full June payment on a fifth.

The disclosed sale funded quarterly dividends on STRF, STRE, STRK, and STRD. It also covered the monthly dividend on STRC. Together these securities form the core of what Strategy calls its Digital Credit business.

Each instrument carries a distinct payout structure. STRF, the senior tier, pays a fixed 10% annual dividend on a $100 stated amount. STRE pays 10% a year on a €100 stated amount, denominated in euros. 

STRK pays 8% and converts to common stock if shares reach $1,000. STRD pays 10% but is not cumulative, giving the board room to skip a payment. 

STRC sits in the middle of the stack and pays a variable rate near 12%, reset to keep the security trading close to its $100 par. The board recently shifted STRC to semi-monthly payments.

None of the preferred securities is backed by the company’s bitcoin. Each holds only a claim on residual assets.

Why Strategy is selling

Strategy is the largest corporate holder of bitcoin. The company has built its treasury through repeated stock and debt offerings. Its bitcoin sits at a cost basis near $63.9 billion, or roughly $75,700 a coin.

That model created a growing cash bill. The preferred securities pay dividends in cash, not bitcoin. Strategy’s software business does not generate enough to cover them. 

Grayscale’s head of research, Zach Pandl, estimated the annual dividend load at $1.5 billion. When cash reserves run short, the company must raise more capital or sell coins.

For years Saylor pledged to never sell. That stance ended in late May 2026. Strategy sold 32 bitcoin for about $2.5 million, its first disposal since 2022, to fund preferred dividends. 

The move broke the pledge and drew wide attention. Saylor framed it as a signal of commitment to preferred holders rather than a retreat from bitcoin. “Our goal is to make STRC the best credit instrument in the world,” he said at the time.

The July sale dwarfs that first step. At 3,588 coins and $216 million, it is roughly a hundred times larger.

According to the company’s latest filing, Strategy sold 3,588 Bitcoin between June 29 and July 5. About 1,363 Bitcoin were sold during the first two days of the program at an average price around $59,256, with another 2,225 Bitcoin sold over the following five days at $60,773.

Buying and selling at once

Strategy continues to accumulate even as it sells. After the May sale, the company bought 1,550 bitcoin for $101.3 million, nearly 50 times the size of the disposal. It made a $2 billion purchase in May and a $2.54 billion purchase in April. 

The pattern shows a firm that funds dividends from its stack while adding to it through fresh capital raises.

That approach depends on market access. Strategy can issue new preferred shares and common stock to raise cash. When those markets cooperate, the company avoids large sales. When they tighten, bitcoin becomes the source of funds. 

The July disposal suggests the second condition held during the quarter.

Last night, Saylor posted “Bitcoin is Digital Energy” on X, accompanied by Strategy’s orange-dot Bitcoin acquisition chart, prompting expectations that another SEC filing disclosing a new Bitcoin purchase is imminent. Traders have come to view these weekend posts as a recurring signal ahead of Strategy’s BTC accumulation announcements. This time, the announcement was about a bitcoin sale.

At the time of writing, Strategy shares are down 2% in premarket and bitcoin has dipped below $62,000.

Tyler Durden Mon, 07/06/2026 - 08:47

Futures Rise As Tech Rebounds In Post-Holiday Catch Up

US equity futures point to a firmer cash open as traders return from the long weekend, but the bigger question is whether investors continue to rotate out of the crowded AI trade and into the broader market.  As of 8:00am ET, S&P futures rise 0.4%, while Nasdaq 100 contract rise 1.1% as most Mag 7 names are in the green.  In premarket trading, chip/memory stocks rebound from last week's rout which follows the an 18% plunge in the GS High Beta Momentum (GSPRHIMO) basket over the last two sessions, on track for 2nd worst month in >15 years. This follows an APAC session on Monday which took a more downbeat view of the tech sector; South Korea’s Kospi index fell, having gained as much as 3% earlier. Memory chipmaker Samsung Electronics’s preliminary earnings Tuesday will provide further clues on demand for AI infrastructure and the durability of the sector’s growth narrative. The MSCI APAC index fell as much as 0.7% before returning to the unchanged mark. The Stoxx 600 has just slipped into negative territory, down 0.1%, after hitting another record high earlier in the session. The Bloomberg Dollar Spot Index is up 0.2% with the greenback firmer versus most G10 peers. Gains are most pronounced against the yen with USD/JPY venturing as high as 162.31 but still below last week’s multi-decade peak at 162.84. Treasuries are seeing a modest bid with the 10-year yield down 2 basis points at 4.46%. Oil prices fell as flows through the Strait of Hormuz persisted and OPEC+ signaled higher supplies, with Brent trading about 0.4% lower at $71.82 a barrel. Precious metals are on the back foot with spot gold and silver posting respective losses of 0.8% and 0.7%. Bitcoin is down 0.1%. Today's US economic data calendar includes June final S&P Global US services PMI (9:45am) and June ISM services (10am). Fed speaker slate includes Waller at 11am

In premarket trading, Mag 7 names are mostly higher (Meta +1.4%, Tesla +1.3%, Amazon +0.7%, Alphabet +0.5%, Nvidia +0.3%, Microsoft is unchanged, Apple -0.6%). Chipmakers and other AI-related firms rise ahead of Samsung’s June quarter earnings and updates to SK Hynix Inc.’s massive ADR listing.

• Alibaba ADRs (BABA) inch about 1% higher after a federal judge ordered the Pentagon to give the company a reprieve from a law that caused all of its lobbyists to drop it as a client.
• Datadog (DDOG) falls 2.4% after Bernstein downgraded the software company to market perform, citing caution about the company’s earnings prospects.
• JB Hunt (JBHT) slips 1% after Morgan Stanley cut the recommendation on the freight carrier to underweight, saying the stock’s valuation is “unjustifiable” after a rally.
• Kosmos Energy (KOS) rises 4% after the firm provided updated guidance with second-quarter production at its Jubilee oil field in Ghana reaching about 72,000 barrels of oil per day.
• Opus Genetics (IRD) rises 2% after saying it reached alignment with the FDA on the design of its Phase 3 trial evaluating OPGx-LCA5 for LCA5-associated inherited retinal disease.
• Seer (SEER) climbs 33% after CEO Omid Farokhzad offered to buy the a biotechnology company.
• Zim Integrated’s US shares (ZIM) are down 6% after Ynet reported Sunday that Prime Minister Benjamin Netanyahu said a proposed sale was “not on the agenda,” without clarifying how it got the information.

This week presents key tests for tech leadership. SpaceX joins the Nasdaq 100 on Tuesday, likely prompting index-related repositioning. That same day, Samsung’s preliminary earnings are due. Then on Friday comes SK Hynix’s Nasdaq listing, which could be the biggest-ever first-time share sale by a foreign company. 

The events will take on added significance in a week that features a thin data calendar, while the US earnings season is yet to kick into gear. Global stocks have gone through a stretch of uneven trading as investors question whether the past quarter’s AI-driven rally has run too far and whether vast capital outlays are guaranteed to produce strong returns.

The macro calendar picks up on Wednesday with minutes from the Fed’s June meeting. They take on added significance after Warsh shortened the policy statement and declined to contribute to rate forecasts. Bloomberg Economics’ Andrew Sacher expects the account to reinforce the commitee’s focus on above-target inflation and its preference to preserve the option of further tightening. Further detail about Fed-think will likely guide equity positioning into the upcoming earnings season. BNY strategist Geoffrey Yu says the question is whether the Fed can stay patient without seeing inflation risks reemerge. 

Separately, SpaceX is due to join the Nasdaq 100 on Tuesday, an inclusion that may trigger some index-related repositioning.

“Speculative positioning in semiconductors and other hot technology themes is likely to continue being reduced,” said Roberto Scholtes, head of strategy at Singular Bank. “The key question will be whether this triggers a rotation into lagging sectors or a broader correction.”

Morgan Stanley’s Michael Wilson thinks the market broadening story continues to gain momentum as chips underperform; he believes US stocks will struggle to reach new highs as investors rotate out of some of this year’s biggest tech trades. Wilson says momentum is fading in semiconductor stocks as investors shift toward laggards, including AI hyperscalers.  The steep fall in oil has helped to stabilize rates, which is another driver of the rotation to lagging areas of the market, he adds. He favors AI hyperscalers, consumer discretionary goods, transports, and biotech.

For Kokou Agbo-Bloua, global head of research at Societe Generale Corporate and Investment Banking, the market is increasingly learning to live with short-term volatility. “I wonder whether the market is becoming a bit more anti-fragile, in the sense of adapting the news flow and seeing through the noise and focusing on the fundamentals, especially with the whole AI boom and the ecosystem around it,” he said.

In a week with few major data releases, the key variable for Treasuries would be oil prices, said Francisco Simon, European head of strategy at Santander Asset Management. “Specifically, whether the recent downward trend remains in place and whether the newsflow around energy markets continues to stabilize,” Simon said. “Central bank communication could also move markets, although in the absence of significant new developments we would not expect a major shift in tone.”

Defense is also back on traders’ radar ahead of the two-day NATO summit starting in Turkey tomorrow. Trump meets Ukraine’s Zelenskyy there on Wednesday.

European shares slip following Friday’s record close. Stoxx 600 falls 0.2% to 651.15 as investors digest a slate of M&A news, with EasyJet jumping after agreeing to a takeover offer from Castlelake. ITV rose after agreeing to sell an arm to Sky, while Thales has said it wants to buy Exail. Media stocks are outperforming, followed by autos. Utilities and construction sectors are the biggest laggards. Here are some of the biggest movers on Monday:

• EasyJet shares jump as much as 11% after the budget airline accepted a takeover offer from US private equity firm Castlelake at 690p a share.
• Carlsberg shares gain as much as 3.7% after the Danish brewer and Sapporo agreed to form a strategic joint venture.
• DWS and Amundi shares rise to record highs after Morgan Stanley and Citi raise their price targets on the asset management firms.
• Schott Pharma jumps as much as 11% after Deutsche Bank upgraded the stock to buy from hold, citing accelerating growth for the German pharma packaging company in 3Q and 4Q, accompanied by improving margins.
• Nemetschek shares rise as much as 5.7% after Deutsche Bank resumed coverage of the software company with a buy recommendation.
• ITV shares rise as much as 2.4% after the company agreed to sell its Media and Entertainment arm to Sky.
• JCDecaux shares rise as much as 3.8% as Oddo BHF (outperform) says it expects the outdoor advertising company’s second-quarter results to turn out better than expected due to the end of the conflict in the Middle East.
• OC Oerlikon gains as much as 9.5% as Oddo BHF upgrades the Swiss industrial technology company to outperform from neutral on increased estimates for FY26 that exceed the company’s own guidance.
• Exail shares rise as much as 4.2% after Thales said it intends to make a tender offer for the French maker of mine-destroying sea drones following its agreement to buy the Gorgé family’s 35.51% stake.
• BE Semiconductor shares slip as much as 7.7% on Monday after South Korea news outlet ZDNet reported that chipmakers may further delay the full adoption of an advanced chip packaging technology.
• Close Brothers Group declined as much as 9.3%, after JPMorgan downgraded to sector perform from outperform, saying that the UK motor finance issue has become increasingly uncertain.

Stocks in Asia fluctuated, with Samsung Electronics to come under scrutiny when the chipmaker releases earnings on Tuesday after a 165% year-to-date rally. The report will be followed days later by SK Hynix Inc.’s $28 billion US listing.  The MSCI Asia Pacific Index swung between narrow gains and losses. South Korea’s Kospi index fell, having gained as much as 3% earlier. Memory chipmaker Samsung Electronics Co.’s preliminary earnings Tuesday will provide further clues on demand for AI infrastructure and the durability of the sector’s growth narrative. “The market is in a holding pattern ahead of Samsung’s preliminary results, which is the centerpiece of what’s shaping up to be a semiconductor super week,” said Dilin Wu, a strategist at Pepperstone Group. If the results disappoint, “the conversation shifts to whether this is a cyclical pause or the beginning of something more structural.”  Bucking the trend, Chinese stocks listed in Hong Kong rose for a third day, up more than 1%. Tencent Holdings was the top contributor, after JPMorgan said it expects its stock to rebound thanks to its AI agent launch in Weixin. Japan’s Topix index rose to another all-time high, supported by defense stocks on signs of government policy tailwinds.  In South Korea, the government is looking at creating an investment fund using excess tax revenue from the semiconductor industry to finance long-term economic growth, according to a senior official. Investors are also turning their attention to SK Hynix Inc.’s listing of $29 billion American depositary receipts later this week. Here Are the Most Notable Movers

• Tencent shares rise after JPMorgan said it expects the company’s stock price to rebound thanks to its AI agent launch in Weixin. Chinese brokerage stocks rise on earnings optimism.
• Shares of Sanrio, owner of the Hello Kitty brand, climbed 6.2% after an analyst report touted an increase in social media followers of its intellectual property.
• Shares of Kanzhun rise as much as 4.8% after JPMorgan initiates coverage on its H-share with an overweight rating, saying AI will be a major driver in increasing the online recruitment company’s long-term average revenue per use.
• Shenzhen Xunce Technology shares rise as much as 15% in Hong Kong after the company said it entered into a MOU on strategic cooperation with Gechuang Dongzhi (Shenzhen) Technology to expand data tokenization capabilities into industrial smart manufacturing.
• Shanghai Biren Technology shares fall as much as 9.9% to the lowest since May 19 after the company raised HK$7.07 billion ($901 million) in gross proceeds by placing 153 million new H shares at HK$46.20 each.

In FX, the Bloomberg Dollar Spot Index is up 0.2% with the greenback firmer versus most G10 peers. Gains are most pronounced against the yen with USD/JPY venturing as high as 162.31 but still below last week’s multi-decade peak at 162.84. The yen lost ground against all major currencies as traders tested the resolve of Japanese authorities to intervene. Goldman Sachs joined the growing ranks of investors and strategists who are increasingly bearish on the yen, which is already trading around its lowest levels since 1986. The Wall Street bank revised its 12-month forecast to 165 from 155, reflecting fiscal pressures in Japan, higher-for-longer Treasury yields and only gradual rate hikes from the Bank of Japan, strategist Karen Reichgott Fishman noted.  

In rates, treasuries are seeing a modest bid with the 10-year yield down 2 basis points at 4.46%. Treasury futures hold small gains accumulated during Asia session and London morning, led by front-end and belly tenors as oil prices remain near three-month lows and stock futures advance. US intermediate yields are 3bp-4bp richer on the day, steepening 5s30s spread by 2.5bp; 10-year, around 2bp richer near 4.46%, outperforms bunds and gilts in the sector by 2bp and 2.5bp respectively. IG dollar issuance slate includes a few names already. Dealer forecasts for this month are around $100 billion, with around $25 billion lined up for this week. This week’s Treasury auctions start Tuesday with $58 billion 3-year new issue, followed by $39 billion 10-year and $22 billion 30-year reopenings Wednesday and Thursday. US session includes June ISM services gauge and scheduled remarks by Federal Reserve Governor Christopher Waller. 

In commodities, WTI oil is holding below $69 a barrel after seven OPEC+ members agreed on Sunday to increase their collective production quotas by a modest 188,000 barrels a day for next month, adding to the prospect of more supply eventually hitting the market if a US-Iran peace pact can stick. Shipping through a US-protected corridor in the Strait of Hormuz showed signs of recovery. Precious metals are on the back foot with spot gold and silver posting respective losses of 0.8% and 0.7%. Bitcoin slides back under $62000 on news Michael Saylor's Strategy sold 3,588 in the past week.   

US economic data calendar includes June final S&P Global US services PMI (9:45am) and June ISM services (10am). Fed speaker slate includes Waller at 11am. Bloomberg Economics expects the ISM services index to have remained in expansionary territory, but to have softened after jumping to 54.5 in May. A modest decline in orders growth likely led to a deceleration in production activity.

Market Snapshot

Top Overnight News

• Shipping along a US-protected corridor near Oman in the Strait of Hormuz recovered after some vessels earlier performed unexplained U-turns and detours. OPEC+ backed another modest rise in quotas for next month. BBG
• Ukraine is striking Russian energy infrastructure at an unprecedented rate, according to an FT data analysis showing that Kyiv’s intensified drone campaign is spurring Russia’s worst fuel crisis in decades. FT
• Ukraine’s capital Kyiv came under a deadly Russian attack early Monday morning, on the eve of a critical NATO summit in Turkey that US President Donald Trump plans to attend. CNN
• World powers are pouring billions into AI, drones, hypersonic missiles and space technologies in a race to dominate the battlefields of the future. BBG
• A year ago, the message from many business leaders was that AI was going to wipe out jobs. For the past month or so, tech CEOs have been striking a more optimistic tone. WSJ
• South Korea is looking at creating an investment fund using excess tax revenue from its chip industry to finance long-term economic growth. BBG
• Chinese tech giants including Alibaba, ByteDance and Tencent have all announced plans to disable AI persona features as Beijing tightens its regulatory framework on the rapidly advancing AI industry. Nikkei
• The yen should be about 20% stronger at around 130 per dollar, former Japan currency chief Tatsuo Yamasaki said. BBG
• Large investors are committing billions of dollars to private credit funds as big institutions seek to profit from an exodus of smaller retail clients. North American direct lending funds that seek to attract institutional clients raised at least $16bn in the second quarter. FT
• Goldman Sachs sees USD/JPY at 165.00 in a year's time, raising its forecast from 155.00, citing Japan's interest rate differentials with the US

A more detailed look at global markets courtesy of Newsquawk

Asia-Pac stocks initially started the session with broad gains but reversed as the session continued, with a busy week ahead, which includes Samsung Electronics' Q2 earnings and SK Hynix's US listing. ASX 200 managed to limit its downside, and only posted modest losses, as upside in Energy and Health Care broadly offset the downside seen in Consumer Staples and Mining names. Further on the mining topic, Genesis Minerals made a AUD 5.6bln bid for Vault Minerals, hijacking a deal previously made with Regis Resources. Nikkei 225 was softer as it continued to pull back from its ATH of 72,832. Kioxia was one of the big underperformers, after the Co. began shipping sample next-gen semiconductor products. KOSPI was under significant pressure, despite initially printing gains of as much as 2.9%, with Samsung set to report Q2 figures on Tuesday; operating profit expected to print at KRW 86tln. However, a miss would be detrimental to tech valuations, since doubts have crept in over the scale and durability of AI demand and capex. Shanghai Comp. traded either side of the unchanged mark while the Hang Seng posted decent gains. Alibaba found some comfort after a US federal judge ordered the Pentagon to give the Co. a reprieve from a lobbying ban tied to the Pentagon's curbs on Chinese companies.

Top Asian News

• Apple (AAPL) supplier Luxshare (002475 CH) reportedly plans pricing its Hong Kong listing at the top end, Bloomberg reported.
• SK Hynix (000660 KS) is to raise KRW 43tln in ADR listing.
• Meituan's (3690 HK) LongCat-2.0 has been officially open-sourced, and domestic chip manufacturers are collectively adapting to it, Chinese press reported.
• Honda's (7267 JT) China unit reported June vehicles sales of 32.5k units, -44.5% Y/Y.

European bourses (STOXX 600 -0.2%) have traded on either side of the unchanged mark throughout the morning, with a lack of pertinent catalysts driving the action. European sectors are mixed but with a positive bias. Leading the table is Media, helped by ITV (+1%), Travel and Leisure is helped by easyJet (+10%), while European tech underperforms after modest losses in APAC (ASML -1.5%, STMicroelectronics -1.5%). For easyJet, the co. agreed in principle to Castlelake’s fifth takeover bid, at GBP 6.90/shr in cash. Stateside, futures play catch-up after US stocks were closed on Friday for US Independence Day. NQ +1% outperforms after broad tech gains on Friday, ES +0.4%, and RTY +0.2% also green.

Top European News

• UK Defence Minister Jarvis told POLITICO he wants Burnham’s administration to lay out the full pathway to spending 3.5% of GDP on defense at the next spending review, due spring 2027.
• France is said to have softened its stance of possible sale of SAMP/T air defence system (HO FP) to Turkey, according to sources.
• CVC's (CVC NA) sale of marina group D-Marin is said to be valued at EUR 1-1.5bln, FT reported, citing sources

FX

• Lack of macro catalysts with geopolitical news light as US-Iran negotiations pause for the former Supreme Leader’s funeral processions. The Buck today is seemingly attracting carry demand as we near summer trade, where ING notes G7 FX volatility is close to the lower end of long-term ranges. DXY currently trades near highs, within a 100.82 to 101.13 range.
• JPY is the clear underperformer, as it attempts to return to recent lows against most peers. Specifically, USD/JPY +0.5% on the day as the Buck outperforms against low yielders and after unconvincing potential intervention over the past week. USD/JPY sees its first resistance at 162.50 to the upside; thereafter, the next significant level is the 1st July high of 162.84.
• Antipodeans are mixed, Aussie outperforms as it attracts carry demand as mentioned above, while Kiwi is one of the G10 laggards as hawkish bets unwind ahead of the RBNZ policy announcement on Wednesday. Ahead of the meeting, the NZIER Shadow Board recommended that the RBNZ hold the OCR at 2.25%, against the market consensus of a 25bp hike to 2.50%. AUD/NZD +0.4% and approaches 1.2200.
• South Korean Finance Minister said the BoK is to closely monitor the impact and movements of KRW's 24-hour trade.

Fixed Income

• Global fixed benchmarks are mildly firmer this morning, taking leads from lower energy prices. Price action has been fairly lacklustre this morning, with the European session ultimately seeing sideways action.
• USTs (+4 ticks) are firmer this morning and hold within a 109-17 to 109-24 range; currently holding towards the upper end of the day’s range. US-specific newsflow has been lacking this morning, but will likely pick up in the form of US Final PMIs and then the more closely watched ISM Services thereafter. On that front, the headline is expected to pare to 54.0 (prev. 54.5), prices paid at 69.0 (prev. 71.3), and new orders at 57.0 (prev. 57.3).
• Bunds (+8 ticks) and Gilts (+5 ticks) both trade with mild gains, but with action ultimately non-committal. Both benchmarks are off their best levels and trading towards the mid-point of their respective 126.59-126.82 and 88.81-89.12 ranges.
• For Europe specifically, the EZ Sentix Investor Confidence topped expectations (-3.1 vs exp. -14.5), though not all too surprising given the recently signed US-Iran MoU. Sentix stated that “The slump in sentiment caused by the Iran conflict is slowly being overcome. The German government's latest reform efforts are having an impact”. On the data front, EZ PPI Y/Y printed a touch above the expected, as did Retail Sales – no move was seen on the data.
• BoJ announces its outright bond purchase operation in-line with its plan. Offers to buy JPY 100bln of <1yr JGBs. Offers to buy JPY 335bln of 5-10yr JGBs. Offers to buy JPY 100bln of 10-25yr JGBs

Commodities

• WTI Aug and Brent Sep futures are ultimately on a softer footing following choppy APAC and European morning trade. Macro catalysts remain quiet, further compounded by a temporary lull in geopolitical headlines, driving a steady unwinding of the war premium that supported prices throughout H1 2026. WTI resides towards the lower end of a USD 67.82-69.21/bbl range, while Brent sits at the bottom end of a USD 71.02-72.45/bbl parameter.
• Elsewhere, metals are mixed with precious metals softer after last week seeing its first weekly gain since May, supported by fading Fed rate hike expectations following the soft US jobs data, and lower energy prices. Meanwhile, overnight, it was reported that Hong Kong's pension fund will be able to invest in more gold ETFs as part of the government's push to make the city a gold trading hub, SCMP reports, citing sources. SCMP earlier reported that Hong Kong is to reportedly launch a gold clearing and settlement system.
• Price action this morning saw the yellow metal find resistance around the USD 4,200/oz mark, currently residing in a USD 4,144-4,202/oz range, with US traders set to return from their long weekend, and with ISM Services PMI ahead.
• In terms of base metals, copper futures are rising for a third consecutive session in a USD 13,361.53- 13,464.00/t range, whilst aluminium extends a rebound from a four-month low, supported by fading Fed rate hike bets after Fed Chair Warsh last week said price risks were easing.
• Goldman Sachs lowered its LME aluminium price forecast to USD 2,950/t for Q4 2026 and lowered its 2027 average forecast to USD 2,700/t. Goldman Sachs cuts its 2026 aluminium supply deficit forecast to 100k tonnes and raises its 2027 supply surplus forecast to about 1.5mln.
• Infrastructure has reportedly been damaged in the region of Russia's Ust-Luga and Vysotsk oil ports after a drone attack.
• UK ministers are reconsidering a ban on crop-based biofuels for aviation following a lobbying tour of the US Corn Belt by government officials, the FT reported.
• A power outage has been reported at Marathon Petroleum's (MPC) Detroit refinery, causing controlled gas burning, according to local media.
• Hong Kong's pension fund will be able to invest in more gold ETFs as part of the government's push to the city into a gold trading hub, SCMP reported citing sources.
• South Korean prosecutors say refiners colluded to hike prices despite ample oil reserves, Yonhap reported.
• A fleet of 10 Japan-related ships have reportedly left the Strait of Hormuz, shipping data shows.
• Israel's energy minister said Israel is launching a new competitive process to search for more natural gas in the country's economic waters.

Central Banks

• New Zealand NZIER Shadow Board recommends that the RBNZ holds the OCR at 2.25%.
• PBoC injected CNY 7bln via 7-day reverse repos with rate maintained at 1.40%.
• PBoC set USD/CNY mid-point at 6.8066 vs exp. 6.7850 (prev. 6.8047).
• Swiss Total Sight Deposits (w/e Jul 3) 479.2bln (prev. 474.4bln W/W), Domestic 440.9bln (prev. 440.6bln W/W).

Geopolitics: Ukraine

• Ukraine's military said it has struck its oil refineries in Russia's Yaroslavl and Leningrad regions.
• EU's von der Leyen said EU is working to seal the 21st Russian sanctions package in the next days.
• Infrastructure has reportedly been damaged in the region of Russia's Ust-Luga and Vysotsk oil ports after a drone attack.
• Russian Defense Ministry said 519 Ukrainian drones were shot down over the regions overnight.
• A Ukrainian official said the death toll in Kyiv has risen to 9 after the recent Russian attacks.
• US President Trump is to meet with Ukrainian President Zelensky at the NATO summit in Ankara, Turkey.
• Kyiv Mayor said the city is under a Russian missile attack with one residence badly damaged.
• A Russian official said the Ukrainian attack cuts the electricity to Sevastopol in Crimea, AFP reported.
• Several Russian ballistic missiles have struck Kyiv, with explosions being heard, according to an FT reporter.

Geopolitics: Iran

• Islamabad is the more likely option for the next round of US-Iran technical talks, with July 11th expected to be the date, sources tell Pakistani newspaper Dawn, according to Fox. Negotiations are expected to focus on Iran's nuclear programme, frozen Iranian assets, the Strait of Hormuz and the Lebanon ceasefire.
• Israeli Defence Minister Katz said any Iranian leader who tries again to promote plans to destroy Israel will be thwarted; Israel is prepared to defend itself again, with its own forces, at any time and against every threat.
• Iranian Parliament Speaker Ghalibaf said a ceasefire in Gaza will be part of the second phase of the agreement with the US.
• Iranian Parliamentary Speaker Ghalibaf said the US memorandum is 'difficult but possible' to enforce, Al Jazeera reported.
• The Israeli occupation army carries out a bombing operation in the town of Houla in southern Lebanon.
• Israeli Army Chief of Staff Zamir said that the Israeli army will continue its operations to eliminate threats from Lebanese soil.
• Israeli airstrikes hit multiple towns in southern Lebanon.

US Event Calendar

• 9:45 am: United States Jun F S&P Global US Services PMI, est. 51.3, prior 51.3
• 9:45 am: United States Jun F S&P Global US Composite PMI, est. 52.2, prior 52.2
• 10:00 am: United States Jun ISM Services Index, est. 54, prior 54.5
• 11:00 am: United States Fed’s Waller, ECB’s Schnabel, Wunsch, Riksbank’s Seim in Rome

DB's Jim Reid concludes the overnight wrap

I hope your weekend was good. Mine was certainly a big WOW! 8.5 months after back fusion surgery I won both the scratch and handicap 2-day over 50s club championship. I shot 72 and 71 (one over gross). It took Tiger Woods two years after the same fusion surgery to win The Masters so I'm seeing this as a greater achievement. My twins were very impressed with the two huge cups I brought home and have earmarked winning the same event. They qualify in 2068! I wonder if England will have won the football World Cup again by then. I did get up to watch the second half which has just finished as I type this. A crazy win against Mexico. To all the readers in Norway, see you on Saturday!

Moving on, the week after payrolls is usually a quieter affair but there's plenty of global events even if the US calendar is light. In terms of the main highlights, given the current focus on monetary policy the FOMC minutes (Wednesday) and the ECB’s June meeting account (Thursday) will be carefully watched, especially the former given it was the first of the new Warsh regime. Speeches from Fed Governors Waller (Monday), Williams and Logan (Thursday) will provide a more "live" update to the committees' thinking. Elsewhere, China inflation data (Thursday) and a run of German activity indicators including factory orders (today), industrial production (tomorrow) and trade (Thursday) are worth tracking. German reforms in recent weeks have offered some renewed optimism that we will finally see the benefits of the huge fiscal spending and reform agenda after scepticism had been building. Geopolitically, the NATO summit (Tuesday–Wednesday) will also be in focus, with Mr Trump in attendance, and could generate plenty of headlines.

In terms of other data and events, today sees ISM services (Monday) which follows the recent weakness in manufacturing, where our economists expect a modest improvement. Most of the other data in the US is second tier but includes existing home sales on Thursday. Outside of the US, the BoE’s financial stability report (tomorrow) will be interesting, while inflation prints from Sweden (Wednesday) and Denmark and Norway (Friday) deserve a glance. In Japan, the data flow includes labour cash earnings and household spending (tomorrow), the Economy Watchers survey (Wednesday) and PPI (Friday). Elsewhere, we will see the RBNZ policy decision (Wednesday), where our economists expect a rate hike, and Canada’s labour market report (Friday).

In Asia, it's all eyes on the KOSPI at the moment after a pretty wild time of late. After being up 3% early in the session, it's now -1.86% as I type with the Nikkei -1.18% lower. The Shanghai Comp is -0.35% with the ASX -0.22%. However, the Hang Seng is +1.16%. S&P (+0.23%) and Nasdaq (+0.76%) futures are up but are roughly around Friday's levels when the US was on holiday.

Recapping last week now and markets saw a decent risk-on move, with the S&P 500 posting its best weekly performance since early May, with a +1.76% advance. That came amidst several dovish headlines, which meant investors priced out the chance of an imminent rate cut. For instance, Fed Chair Warsh said that inflation risks had come down at the Sintra Forum on Wednesday. And then on Thursday, the US jobs report showed payrolls up +57k, which was weaker than expected (even if unemployment was a tenth lower than expected). So collectively, that meant market pricing for a July hike fell from a 30% chance to 22% over the course of the week. And that dovish repricing was clear further out the curve, as the amount of hikes priced by the December meeting also came down slightly from 32bps to 30bps.   

Over in Europe there was a similar trend, with the STOXX 600 up +2.66% (+0.68% Friday) to a new record. That came as markets grew more doubtful about another ECB rate hike this year, with the latest flash CPI print also surprising on the downside. It showed headline inflation falling more than expected to +2.8% in June, and core CPI also falling to +2.4%. So markets also priced out the chance of another ECB rate hike by December, which fell from a 96% to an 83% chance over the week.  

But even though equities did quite well on the whole, there were still clear pockets of weakness, most notably in the chip sector. Indeed, the Philly semiconductor index fell -4.37%, losing ground for a second week running. Interestingly as well, the dovish repricing failed to prevent a move up in longer-dated yields, with the 10yr Treasury yield up +11.5bps last week to 4.48%, whilst the 10yr German yield rose +8.4bps to 2.93%.  

Finally, oil prices were comparatively steady last week, and Brent crude saw little movement with a +0.18% gain (+0.45% Friday), leaving it at $72.12/bbl. Otherwise, credit spreads tightened across the board, with US IG (-1bps) and HY (-15bps) spreads both coming down. It was a similar story in Europe too, where Euro IG (-1bps) and HY (-2bps) spreads also tightened.

Tyler Durden Mon, 07/06/2026 - 08:28

China CXMT Testing Production Line for Next-Gen Bonded DRAM, Closing Tech Gap With Korea "Far Faster Than Expected"

According to Korea's Hankgyung, China’s largest memory company, CXMT, which is preparing to IPO in the coming weeks, is currently testing a pilot production line for bonded DRAM in Hefei (the heart of China's semiconductor industry), aiming to achieve high-performance DRAM without using advanced EUV lithography, which is currently monopolized by Dutch ASML and faces unprecedented export controls (although according to Reuters, China has already built a prototype EUV machine).

Bonded DRAM is a technology in which the memory cell array and the peripheral circuitry are fabricated on separate wafers and then bonded together, as explained here. This approach enables the production of ultra-high-density DRAM using only deep ultraviolet (DUV) lithography with multi-patterning, eliminating the need for EUV tools.

Samsung Electronics is also developing its own bonded DRAM under the “B1b” project, while SK Hynix is pursuing a similar technology. However, Korean media warn that there are assessments suggesting CXMT may currently hold an edge over its Korean rivals in both the technology itself and the speed of development.

According to the Korean outlet, Chinese memory chipmakers CXMT (DRAM) and YMTC (NAND) - which just two years ago were nothing more than firms struggling to manufacture low-end chips and suffering trillions of won in losses annually - have recently undergone a dramatic transformation and have "closed the technology gap with Samsung Electronics and SK Hynix far faster than expected", from roughly a 5-year lag down to about 3 years, despite US export controls blocking access to advanced EUV lithography equipment.

Here are the key details :

• CXMT's secret R&D push: At its Hefei facility, CXMT has secretly begun building an R&D line for next-generation "bonded DRAM," aiming to commercialize it before Korean rivals. This project aims to develop and produce next-generation memory semiconductors known as "bonding DRAM." These are considered "memory semiconductor game changers" because they can maximize performance and capacity. The company reportedly has recruited top-tier engineers with the explicit goal of beating Korea to market. 
• Rapid market gains: As recently as 2024, Chinese firms were seen as low-end, loss-making commodity suppliers. By Q1 2026, CXMT's share of the global DRAM market reportedly jumped to 8%, and it's said to be under consideration as a new DRAM supplier for Apple.
• HBM ambitions: CXMT is pushing into high-bandwidth memory (HBM), converting about 20% of production lines toward HBM3/HBM3E development, working around the lack of EUV tools by using advanced multi-patterning with older DUV equipment.
• NAND patents — China ahead: YMTC's proprietary "Xtacking" wafer-bonding technology gave it an early lead in hybrid bonding patents — the article cites YMTC holding 119 core patents versus Samsung's 83 and SK Hynix's 11 (as of 2023) — to the point that Samsung reportedly licensed patents from YMTC for its next-gen NAND roadmap.
• Next-gen tech race: Beyond HBM, China is pursuing "post-HBM" CXL (Compute Express Link) memory, with CXMT working with domestic fabless firm Montage Technology on controllers, leveraging its server DDR5 experience.
• IPO push: Both CXMT and YMTC are moving toward public listings (CXMT possibly on the Shanghai exchange as soon as this month) to fund expansion beyond government subsidies.
• Expert warnings: Seoul National University professor Hwang Chul-sung called Chinese semiconductors "the biggest future threat to Korea." Another professor warned that once Chinese AI chipmakers like Huawei begin adopting domestic memory for real-world use, yield and reliability could improve faster than expected. A POSTECH professor argued Korea must lock in an unmatched technology lead in next-gen memory and packaging before the "golden time" created by U.S. sanctions runs out.

Also noted: Huawei's May-unveiled "Tau's Law" concept, which reportedly focuses on cutting data transfer time (rather than transistor miniaturization) to boost overall AI chip system performance — seen as a potentially disruptive alternative approach.

NAND flash and the hybrid bonding patent gap

The article frames this as the area where warning signs are already flashing red. Samsung and SK Hynix currently lead volume production in the 200-to-300+ layer NAND range, which underpins high-value products like enterprise SSDs. But pushing past 400 layers runs into physical limits, making "wafer-to-wafer (W2W) hybrid bonding" a must-have process — a technique that fuses two wafers directly, connecting circuits vertically without conductive bumps between chips.

China's YMTC got there first. Its proprietary "Xtacking" architecture, the world's first of its kind to reach commercialization, has scaled from 160-layer to the newest 270-layer NAND in mass production. On core patents, YMTC reportedly holds 119 versus Samsung's 83 and SK Hynix's 11 (2023 figures) — enough of a lead that Samsung, the NAND market leader, reportedly had to sign a patent licensing deal with YMTC to develop its next-generation "V10" triple-stack NAND (430+ layers).

The CXL / "post-HBM" race

Beyond memory's current HBM cycle, the article describes China moving fast on CXL (Compute Express Link) DRAM, described as the "post-HBM" technology. CXMT is said to be leveraging its experience mass-producing server DDR5 to formally launch into CXL 3.0 development, and is partnering with domestic fabless chip designer Montage Technology to secure the controller technology that's central to CXL products.

This sits alongside CXMT's other next-gen bet: "bonded DRAM," which separates the memory-cell layer and the peripheral control layer onto two different wafers before joining them - a way to boost density and performance without needing EUV lithography (which U.S. export controls block China from importing).

CXMT is reportedly piloting this at a Hefei line using older deep-ultraviolet (DUV) tools plus multi-patterning instead. Samsung (via its "B1b" project) and SK Hynix are working on their own bonded-DRAM equivalents, but the article notes some assessments actually rate CXMT ahead of the Korean firms on speed and technical maturity here.

A POSTECH professor is quoted arguing Korea's current supply-chain lead owes a lot to U.S. sanctions on China, and that Korean chipmakers need to lock in an irreplaceable technology edge in next-gen memory and packaging before that sanctions-driven "golden window" closes.

The report prompted BCA strategist Peter Berezin to remind the world that technological progress has a way of making the return on massive capital spending vaporize on very short notice: "We managed to achieve massive growth in internet traffic without having to spend much more on internet infrastructure because the transmission technologies became much better. Why won’t there be similar technological innovations that dramatically lower the cost of producing memory?"

The internet is a good example here. We managed to achieve massive growth in internet traffic without having to spend much more on internet infrastructure because the transmission technologies became much better. Why won’t there be similar technological innovations that… https://t.co/bXKLkulcak pic.twitter.com/MrkmYzVpHD

— Peter Berezin (@PeterBerezinBCA) July 5, 2026

Meanwhile, on the other side of the Pacific, Michael "Big Short" Burry disclosed a new short position against US chip leader Micron in a Substack post dated July 2. Burry stated that the puts "seemed expensive," so he shorted the stock directly and would add puts if volatility eases. He identified his disclosed entry at $1,052 per share.

The Micron short adds to a broader campaign. On June 30, Burry disclosed shorts against NVIDIA, Applied Materials, and the SOXX Semiconductor ETF, arguing that AI-related chip stocks may be due for a 30% correction. 

Burry argues that Micron, whose shares are up 242% year to date with a market cap near $1.17 trillion, has reached "historically extreme" levels, with Micron stock more extended above its 200-day moving average than at any point since 1984, "not even during the dot-com peak."

Burry stated, "Micron defines cyclical like no other," citing 34 drawdowns of more than 30% over 42 years, a median return on invested capital (ROIC) of 4%, and return on equity (ROE) of 7%, which he called "frankly terrible." He added that "one quarter in every three, Micron is a destroyer of capital," with free cash flow negative 48% of the time.

His view: the move reflects fear of missing out (FOMO) and greater-fool dynamics around high-bandwidth memory (HBM) being "sold out through 2026." The timing carries some irony given President Trump praised Micron for a $250 million Trump Accounts commitment, and CEO Sanjay Mehrotra highlighted more than $200 billion in U.S. memory investment. 

That said, the bull case remains formidable. Micron, whose stock recently became the most actively traded in the US...

... posted Q3 FY26 revenue of $41.46 billion, up 346% year over year (YoY), and guided Q4 revenue to approximately $50 billion per its 8-K filing. Mehrotra stated results "reflect the strategic value of memory in the AI era." Analysts carry an average MU stock price target of $1,486, with 30 Buy and 9 Strong Buy ratings.

Still, while sellside analysts are rushing over each other to raise their earnings estimates, one wonders how many have considered the risk that Chinese memory production and technology not only catches up to Korea, but surpasses it, and in a few years, all the massive memory production ends up in yet another historic glut of what is, despite all the rhetoric to the contrary, just another commodity. 

* * * Next-level Wagyu, now at ZeroHedge Store

Tyler Durden Mon, 07/06/2026 - 08:10

Trump Shares Image Of $100 Bill Featuring His Signature

President Donald Trump posted a photo of a $100 bill bearing his signature on Truth Social on July 3, presenting the first paper currency to be signed by a living president.

Trump didn’t add a comment to the post, but the Treasury Department chimed in.

“Under President Trump’s leadership, we are on a path toward unprecedented economic growth, lasting dollar dominance, and fiscal strength and stability,” Treasury Secretary Scott Bessent posted on X on July 4.

“There is no more powerful way to recognize the historic achievements of our great country and President Donald J. Trump than U.S dollar bills bearing his signature, and it is only appropriate that this historic currency be issued at the Semiquincentennial.”

Under President Trump’s leadership, we are on a path toward unprecedented economic growth, lasting dollar dominance, and fiscal strength and stability. There is no more powerful way to recognize the historic achievements of our great country and President Donald J. Trump than U.S… pic.twitter.com/4dvhML2f7h

— Treasury Secretary Scott Bessent (@SecScottBessent) July 4, 2026

As Tom Gantert reports for The Epoch Times, the Treasury announced in March that Trump’s signature would appear on future U.S. paper currency alongside that of the secretary of the Treasury in recognition of the nation’s 250th anniversary, marking the first time a sitting president’s signature has appeared on U.S. banknotes.

U.S. Treasurer Brandon Beach said in March the updated currency will commemorate both the nation’s 250th anniversary and Trump’s economic legacy.

“As the 250th anniversary of our great nation approaches, American currency will continue to stand as a symbol of prosperity, strength, and the unshakable spirit of the American people under President Trump’s leadership,” Beach said in March.

“The President’s mark on history as the architect of America’s Golden Age economic revival is undeniable. Printing his signature on the American currency is not only appropriate, but also well deserved.”

In April, Sens. Elizabeth Warren (D-Mass.) and Jeff Merkley (D-Ore.) questioned the Treasury Department’s decision to put Trump’s signature on U.S. paper currency, calling it a political gesture that does nothing to address the nation’s economic challenges.

In a letter to Bessent, the senators questioned the rationale for the change, asked whether Trump personally directed the decision and requested details about the cost to taxpayers.

They argued Treasury should instead focus on issues such as inflation, housing costs, and other financial pressures facing Americans.

Meanwhile, the Commission of Fine Arts approved designs for a 24-karat commemorative gold coin featuring Trump as part of its March meeting, according to commission materials.

An image of that proposed coin depicts Trump in a suit leaning forward over a table with both hands resting on its edge, his expression unsmiling.

The coin is not listed on the U.S. Mint’s product schedule release for 2026.

Tyler Durden Mon, 07/06/2026 - 07:45

"Should Never Have Happened": Illegal Alien Truck Driver Kills Pennsylvania Trooper

Submitted by American Truckers United,

A Pennsylvania State trooper is the latest victim of the trucking industry's open borders experiment. This dangerous policy began under the Biden-Harris regime when hundreds of thousands of illegal aliens were issued CDLs, mostly from ten states. The fast-tracking of CDLs for illegal aliens has flooded the industry with drivers who may lack the necessary training, language proficiency, or commitment to American safety standards, endangering lives on our highways every day. Shockingly, this experiment is still running.

🚨Truck Driver responsible for the death of Pennsylvania state trooper now a confirmed illegal alien from Haiti

Source - Boston Herald Link Below👇 pic.twitter.com/4oXFTg7Jh4

— American Truckers United (@atutruckers) July 3, 2026

Trooper Michael E. Pahira, Jr., 44, was inspecting a semitruck on Interstate 81 on July 1, 2026, when another truck went off the roadway and hit the first vehicle, creating a domino effect and striking the officer. Pahira's patrol car was parked behind the cab with its emergency lights on as he inspected the vehicle parked on the right shoulder in Cass Township when the deadly chain reaction occurred. The second truck, allegedly driven by 33-year-old Michael Bon, veered off the road, striking Pahira's side mirror before crashing into the other truck. Both truck cabs caught fire as a result of the impact. Construction workers nearby saw the smoke from the wreck and raced to help the pinned trooper. Pahira was rushed to a local hospital where he was pronounced dead.

🚨Immigration Status of truck driver that killed Pennsylvania State Trooper now in Question.

Does he have Legal Status? a Non-Domicile CDL? TPS?

Thank you to @maybedanielleee for the infopic.twitter.com/1SHMnjdHsk pic.twitter.com/z7flBe1YXH

— American Truckers United (@atutruckers) July 2, 2026

As with all of these truck crashes, there is no reporting mechanism either on the crash reports or CMV inspections that document the immigration status or even the type of CDL that was in the driver's possession at the time of the crash. So when this crash first occurred, there was no discussion of the truck driver's immigration status. Several experienced industry professionals began asking the same question that's been asked recently in light of all the crashes being caused by the surge of illegal aliens who were able to be fast-tracked into the trucking industry. Only then did his immigration status come into question and later confirmed. 

The trucking community, represented by organizations such as American Truckers United, has been raising alarms about this growing threat to highway safety. Without proper tracking, the true scope of the problem remains hidden from the public.

🚨Non-Citizen Truck Drivers Involved in Highway Crisis

This is an urgent wake-up call for every American. Our highways are no longer safe. Reckless immigration policies and weakened licensing standards have unleashed a deadly crisis on our roads. pic.twitter.com/NXrQTivkos

— American Truckers United (@atutruckers) July 10, 2025

How many crashes like Trooper Pahira's go unreported as part of the globalist open-border experiment in the trucking industry?

This accident was preventable.

He should never have been in possession of a CDL. Every accident caused by an illegal alien is a preventable accident. Congress must act on the President's call during the State of the Union to pass Dalilah's Law. This law would have revoked the CDL this driver had in his possession and would have saved Trooper Pahira's life.

Pass Dalilah's Law today. 

Pass The Dalilah Law - A full revocation and ban on CDLs for illegal alien truck drivers!

Read our endorsement. Then call your Senators today and tell them you support The Dalilah Law!

United States Capitol Switchboard (202) 224-3121@POTUS @SecDuffy @SenatorBanks pic.twitter.com/j2PnXi0SnX

— American Truckers United (@atutruckers) February 26, 2026

Revoke their CDLs. 

Tyler Durden Mon, 07/06/2026 - 06:30

Citi Expects Oil To Sink To $60 As Hormuz Traffic Normalizes

Brent Crude prices could plunge to as low as $60 per barrel by the end of the year, according to the latest note from Citi's commodity research team which expects flows through the Strait of Hormuz to soon normalize and the US and Iran to reach a deal in the coming months.

"Fundamentals are rapidly reasserting themselves as Hormuz disruptions fade, with Brent back to the low $70s/bbl. While the US-Iran process remains fragile and disputes over Hormuz administration and transit fees persist, we expect the MOU to hold and turn into a deal over the coming months as incentives to de-escalate outweigh the alternative for the US, Iran, and much of the ME region. Shipping flows are normalizing, Chinese buyers remain absent, physical crude markets have weakened sharply, and inventories have drawn far less than expected," Citi’s Francesco Martoccia wrote in his latest note.

"We continue to recommend selling any summer rallies and forecast Brent reaching $60 to $65 a barrel by the turn of the year," Citi analysts said in the note (available to pro subs).

The investment bank has traditionally been one of the most bearish voices in the market, and especially now that it expects shipping through Hormuz to normalize now that the Strait is open again. Moreover, China’s crude buying remains weak, physical prices have crumbled due to the surge of prompt supply from the Middle East, while “inventories have drawn far less than expected,” Citi said.

Inventories, including in the United States, have crashed to multi-decade lows since the war began four months ago. Buying to refill depleted stockpiles could support oil prices going forward, more bullish analysts say. 

However, the coming global race to rebuild depleted oil inventories will not be enough to offset a massive glut that’s coming to the market next year, as traffic through the Strait of Hormuz appears to be headed toward normalization, Goldman Sachs said this week.

The investment bank expects the global oil surplus to be about 3 million barrels per day (bpd) next year, Samantha Dart, co-head of global commodities research at Goldman, told Bloomberg Television in an interview on Wednesday.

“We do expect a little over 1 million barrels a day just of SPR rebuilding globally, but still, that would leave us close to 2 million barrels a day of a surplus,” Dart added.

Other Wall Street banks have also started to predict a glut next year after the U.S. and Iran signed the MoU.

Morgan Stanley, for example, has slashed its oil price forecasts for the next 18 months as it expects the reopening of the Strait of Hormuz to accelerate a new supply glut.

Tyler Durden Mon, 07/06/2026 - 05:45

The Three SHTF Scenarios That Could Change The World Faster Than Anyone Expects!

Authored by Madge Waggy,

For decades, the greatest threats to global stability were often imagined as distant possibilities—events reserved for history books, military simulations or the darkest years of the Cold War. Today, that assumption is becoming increasingly difficult to defend. International defense spending has reached levels not seen in decades, armed conflicts continue to reshape regional security architectures, and governments across Europe, North America and Asia are investing heavily in civil defense, cybersecurity and the protection of critical infrastructure. These are not preparations made in anticipation of ordinary times, but responses to a world that has become measurably more volatile than it was only a few years ago.

History offers a sobering reminder that societies are rarely transformed by a single catastrophic event. More often, they are changed by a sequence of crises that appear unrelated until they begin reinforcing one another—geopolitical confrontation, economic instability, infrastructure failures and the gradual erosion of public confidence. Whether viewed through the lens of preparedness, national security or historical precedent, one conclusion remains remarkably consistent: the most consequential moments are often recognized only after they have already begun.

Top Three Unstoppable SHTF Scenarios

Three crises that could change everyday life faster than most people believe possible.

 

1. Nobody Notices the Beginning

 

One of the biggest misconceptions about large-scale disasters is that they begin with a single dramatic event. Movies have trained us to expect sirens, mushroom clouds and emergency broadcasts interrupting television programming. Reality has been far less theatrical. Most crises begin quietly, almost anonymously, disguised as temporary inconveniences that appear manageable until they suddenly aren’t.

Think back to the first weeks of 2020. News reports about an unfamiliar virus circulated for weeks before most people paid attention. Outside a handful of specialists, almost nobody seriously believed that international travel would stop, businesses would close overnight or supermarket shelves would be stripped bare by ordinary shoppers. Looking back now, it’s easy to say the warning signs were obvious. At the time, they blended into the constant flow of headlines competing for attention every single day. That pattern has repeated itself throughout history. Major disruptions rarely arrive without warning; they arrive surrounded by so much background noise that almost nobody recognizes them until hindsight turns scattered events into an obvious timeline.

The reason this matters is that the international situation entering the second half of the decade feels unusually crowded with risks that, taken individually, don’t necessarily point toward catastrophe. The war in Ukraine continues to reshape European security policy. Military spending has increased across much of NATO, while countries that had spent decades reducing their armed forces are now expanding recruitment and rebuilding stockpiles of ammunition. In Asia, naval activity around Taiwan has become more frequent, North Korea continues to invest in its missile program, and governments throughout the Pacific are preparing contingency plans that would have sounded alarmist only a few years ago. None of those developments automatically lead to global conflict, but together they create an environment where a single mistake could carry consequences well beyond the region where it begins.

Military planners have long argued that modern wars are less likely to start with a formal declaration than with a sequence of rapidly escalating incidents. A cyberattack disables part of a communications network. Intelligence services detect unusual military movements that may—or may not—be routine exercises. Satellite images are interpreted differently by opposing governments, each convinced the other is preparing to move first. Political leaders are then forced to make decisions in real time while operating with incomplete information, knowing that waiting too long carries risks, but acting too quickly may trigger the very crisis they hope to avoid. History contains numerous examples of conflicts that expanded not because every participant wanted war, but because every participant believed the other side had already decided that war was unavoidable.

2. The Black Sky Event

Few people spend much time thinking about the electrical grid. It is one of those systems that exists almost entirely in the background, quietly supporting modern life without demanding much attention from the people who depend upon it every single day. Flip a switch, and the lights come on. Open a banking application, and a payment is processed within seconds. Order groceries online, and thousands of decisions involving warehouses, logistics companies, transportation hubs and inventory management systems unfold without ever becoming visible to the customer. The greatest achievement of modern infrastructure may not be its scale, but its ability to disappear into everyday life. Only when one part of the system stops working does the extraordinary complexity behind ordinary routines become impossible to ignore.

That complexity has become increasingly difficult to overlook during the past several years. Governments have invested heavily in strengthening electrical networks, protecting telecommunications infrastructure and improving cybersecurity across both public and private sectors. The motivation is not difficult to understand. Modern economies rely upon systems that exchange enormous amounts of information every second, balancing electricity demand, coordinating transportation schedules and synchronizing financial transactions with remarkable precision. A disruption affecting one network rarely remains confined to a single location. Even relatively localized failures can create unexpected consequences elsewhere, not because the systems are fragile by design, but because they have become deeply interconnected through decades of technological progress.

The idea behind what preparedness communities have often described as a “Black Sky” event does not begin with a spectacular disaster. Instead, it unfolds gradually, almost quietly, in a manner that resembles the opening stages of previous crises. A regional outage lasts longer than utility companies initially expected. Mobile networks become unreliable across several metropolitan areas. Electronic payment terminals begin experiencing intermittent interruptions, forcing businesses to accept only cash while technicians investigate the source of the problem. Distribution centers report delays after software responsible for routing deliveries starts producing inconsistent data. None of these developments appears catastrophic on its own. Each can be explained individually. Together, however, they begin creating a pattern that attracts far more attention than any isolated incident would have received only days earlier.

Early Developments

1. Electrical disruptions spread beyond the area where they first appeared.

2. Communications become increasingly inconsistent rather than failing completely.

3. Retail supply chains begin experiencing delivery delays.

4. Financial institutions introduce temporary safeguards while investigating technical anomalies.

5. Emergency services activate contingency procedures designed for prolonged infrastructure failures.

What makes the situation increasingly difficult to interpret is the speed at which uncertainty travels. Modern societies produce an extraordinary volume of information every hour, yet during periods of disruption the demand for answers almost always exceeds the supply of verified facts. News organizations rely upon official briefings that evolve as new information becomes available. Independent analysts compare satellite imagery, transportation data and publicly available infrastructure reports, frequently arriving at different conclusions. Social media platforms amplify eyewitness accounts from thousands of locations simultaneously, mixing accurate observations with misunderstandings, speculation and deliberate misinformation until distinguishing one from another becomes a challenge in itself.

History suggests that confidence can become as important as physical infrastructure during moments of uncertainty. Supermarkets rarely maintain weeks of inventory because modern logistics have made constant replenishment far more efficient than long-term storage. Fuel stations depend upon scheduled deliveries arriving with remarkable consistency. Pharmacies receive regular shipments that reflect predictable patterns of demand. Hospitals coordinate supplies through sophisticated procurement systems designed around uninterrupted transportation. Under ordinary circumstances, these arrangements represent one of the greatest strengths of the global economy. During periods of sustained disruption, however, even modest delays can begin affecting sectors that appear unrelated at first glance.

As reports continue emerging from different regions, attention gradually shifts away from the original outages toward the broader question of resilience. Engineers focus on restoring damaged infrastructure, while government agencies attempt to coordinate information across multiple jurisdictions. Businesses activate continuity plans that had existed largely on paper until circumstances required their implementation. Some organizations transition smoothly to backup systems, while others discover that contingency measures designed years earlier no longer reflect the complexity of present-day operations. Every hour brings incremental progress in some areas and unexpected setbacks in others, creating an environment where optimism and concern coexist in equal measure.

Rather than producing immediate panic, the first noticeable change appears in everyday routines. Families begin purchasing additional bottled water, batteries and shelf-stable food—not necessarily because they expect the worst, but because recent experience has demonstrated how quickly normal purchasing habits can change during periods of uncertainty. Hardware stores report increased demand for portable generators and emergency lighting. Local governments remind residents to review preparedness plans originally developed for severe weather events. These individual decisions seem reasonable when viewed independently, yet together they begin reshaping daily life in subtle but unmistakable ways.

By the time officials announce that restoration efforts may require considerably longer than originally anticipated, the conversation has already expanded beyond electricity itself. The real question is no longer whether power will eventually return, but how a society built upon continuous connectivity adapts when continuity can no longer be taken for granted. That question, more than any technical explanation or engineering report, becomes the defining theme of the weeks that follow.

3. The Hidden Variable

Every crisis begins with a tangible problem. A military confrontation unfolds along a border. A cyberattack disrupts essential services. A financial shock sends markets into turmoil. These events dominate headlines because they can be measured, mapped and documented. They leave behind damaged infrastructure, economic losses and political consequences that analysts can examine long after the immediate emergency has passed.

The more difficult question is what happens after those measurable events begin influencing something far less visible.

History suggests that societies rarely unravel because of a single catastrophe. More often, they are tested by uncertainty itself. Information becomes fragmented, official statements evolve as new facts emerge, and competing interpretations race across television broadcasts, podcasts and social media platforms faster than any government can realistically respond. Within hours, millions of people may be looking at the same event while reaching entirely different conclusions about what has actually happened.

The modern information environment has transformed that process in unprecedented ways. During previous generations, news traveled through a relatively small number of newspapers, radio stations and television networks. Today, virtually anyone can publish photographs, videos or eyewitness accounts that reach a global audience within minutes. This democratization of information has created extraordinary opportunities for transparency, but it has also made distinguishing reliable reporting from incomplete or manipulated content considerably more difficult.

In an environment already strained by military tensions, infrastructure disruptions and economic uncertainty, information itself begins behaving like another critical resource. Accurate reporting becomes increasingly valuable precisely because it is competing against an overwhelming volume of conflicting claims. Every delay in communication creates space for speculation. Every contradictory statement encourages further debate. Every unanswered question generates dozens of possible explanations before investigators have even completed their initial assessments.

This gradual erosion of certainty produces consequences that extend well beyond politics. Financial markets react not only to events themselves but also to expectations about what may happen next. Businesses postpone investments when reliable forecasts become difficult to produce. Consumers delay major purchases, employers slow hiring decisions and international companies reconsider expansion plans while waiting for greater clarity. None of these individual decisions appears dramatic in isolation. Collectively, however, they can reshape economic activity far more effectively than a single headline ever could.

The same pattern has appeared repeatedly throughout modern history. Economic crises have often been accelerated by collapsing confidence rather than disappearing resources. Banking systems depend upon trust that deposits will remain accessible. Supply chains depend upon confidence that contractual obligations will be fulfilled. Democracies depend upon public acceptance that institutions remain capable of resolving disputes peacefully, even during periods of extraordinary disagreement. Once confidence begins deteriorating, restoring it often proves considerably more difficult than repairing damaged infrastructure or rebuilding physical assets.

Signals That Often Accompany Periods of Heightened Uncertainty

1. Rapidly changing official guidance as new information becomes available.
2. Increased market volatility driven by expectations rather than confirmed developments.
3. Growing dependence on unofficial sources for real-time updates.
4. Sudden shifts in consumer behavior despite stable underlying supply.
5. Expanding public debate over which institutions remain the most reliable.

One of the defining characteristics of the digital age is that every major event now unfolds simultaneously across multiple realities. The physical event occurs first. Within minutes it is interpreted by journalists, government agencies, financial analysts, independent researchers and millions of ordinary citizens, each bringing different assumptions and priorities. By the end of the day, the public conversation may no longer revolve around the original event itself, but around competing explanations of what it means and what should happen next.

This phenomenon has introduced a challenge that previous generations rarely faced on such a scale. The speed of communication has increased exponentially, while the speed of verification has not. Satellite imagery requires analysis. Intelligence assessments require corroboration. Infrastructure failures require technical investigation. Financial data requires careful interpretation. Reliable conclusions almost always arrive more slowly than speculation, creating an unavoidable gap between public demand for immediate answers and the time required to produce them responsibly.

For emergency planners, that gap represents one of the most significant challenges of modern crisis management. Restoring electricity, reopening transportation corridors or stabilizing financial systems remains essential, but maintaining public confidence increasingly depends upon something equally important: clear, consistent and credible communication. Without it, even temporary disruptions can appear far larger than they actually are, while isolated incidents may be interpreted as evidence of broader systemic failures.

Perhaps that is the lesson connecting all three scenarios explored throughout this article. Military escalation, infrastructure disruption and institutional uncertainty are often discussed as separate risks, each belonging to different areas of expertise. In reality, modern societies have become so interconnected that developments in one domain inevitably influence the others. A geopolitical confrontation affects energy markets. Energy disruptions influence industrial production. Economic uncertainty shapes political decision-making. Information networks amplify every stage of the process, compressing days of public reaction into hours.

Whether future crises resemble past events or take entirely new forms, one principle remains remarkably consistent. The resilience of a society depends not only upon the strength of its military, the sophistication of its technology or the size of its economy, but also upon its ability to adapt when certainty becomes scarce. Throughout history, civilizations have demonstrated an extraordinary capacity to recover from disasters that once appeared overwhelming. The greatest advantage has rarely been perfect preparation or flawless prediction. More often, it has been the willingness to remain adaptable, cooperate across institutions and communities, and make informed decisions despite incomplete information.

In an era defined by accelerating technological change and increasingly interconnected systems, that may prove to be the most valuable form of resilience of all.

The Common Thread

Looking back through history, it is remarkable how often major crises are remembered for the moment they reached public consciousness rather than the moment they actually began. The headlines that define an era usually arrive only after months, and sometimes years, of developments that seemed disconnected while they were unfolding. Economic downturns are rarely caused by a single trading day. Wars seldom begin with one isolated incident. Even technological revolutions tend to emerge gradually before suddenly appearing inevitable in retrospect. The same pattern can be found across countless historical events, where the decisive turning point often becomes obvious only after enough individual pieces have fallen into place.

That observation forms the common thread connecting every scenario explored throughout this article. Although military conflict, infrastructure disruption and institutional uncertainty appear to belong to different worlds, they are ultimately linked by the same underlying reality: modern civilization functions as an interconnected system. Decisions made in one capital influence financial markets on another continent. A disruption affecting a single shipping route alters manufacturing schedules thousands of kilometers away. Political uncertainty reshapes investment, while economic instability influences diplomacy, defense planning and public confidence. Each development interacts with countless others, creating consequences that are often impossible to predict from any single event alone.

Perhaps that is why periods of rapid change have always been so difficult to recognize while they are happening. Human beings naturally interpret new developments through the lens of previous experience. Temporary shortages are expected to remain temporary. Political disagreements are assumed to follow familiar patterns. Technical failures are treated as isolated problems waiting for engineers to solve them. Most of the time, those assumptions prove correct. Societies recover, institutions adapt and ordinary life gradually resumes. It is precisely because this pattern has repeated so often that genuinely transformative moments are frequently underestimated during their earliest stages.

Preparedness, therefore, has never been solely about stockpiling supplies or anticipating worst-case scenarios. At its core, preparedness has always reflected something far broader: the ability to adapt when familiar assumptions no longer apply. History consistently rewards flexibility over certainty. Communities that cooperate tend to recover more quickly than those divided by distrust. Organizations capable of adjusting to rapidly changing conditions often outperform those relying exclusively on rigid plans. Individuals who remain informed without becoming overwhelmed are generally better positioned than those driven entirely by optimism or fear.

One lesson emerges repeatedly from past crises. Information matters, but judgment matters even more. During periods of uncertainty, headlines compete for attention, opinions multiply and speculation often spreads faster than verified facts. The challenge is not simply finding more information, but learning how to evaluate it carefully, recognizing the difference between immediate reactions and longer-term trends. Decisions made under pressure rarely benefit from panic, yet they also suffer when obvious warning signs are ignored. Maintaining that balance has always been one of the defining characteristics of resilient societies.

The world entering the second half of this decade is neither uniquely dangerous nor uniquely secure. It is, however, more interconnected than at any previous point in history. Advances in technology, communication and global trade have delivered extraordinary prosperity and unprecedented convenience, while simultaneously creating new forms of dependency that earlier generations never experienced. That duality is likely to define many of the challenges ahead. Every innovation that strengthens society also introduces new questions about resilience, complexity and the unintended consequences of living in a world where events on one side of the planet can influence daily life on the other within hours.

For that reason, the value of examining scenarios such as those presented here lies less in predicting the future than in appreciating how quickly circumstances can change when multiple systems interact. History has repeatedly demonstrated that resilience is rarely built in the middle of a crisis. It is developed beforehand through planning, cooperation, investment in reliable institutions and an informed public capable of responding thoughtfully when conditions become uncertain.

No one can predict precisely what the next defining global crisis will look like. It may resemble challenges experienced before, or it may emerge from directions that currently receive little attention. What history suggests with remarkable consistency is that the first signs are seldom recognized for what they are. They appear as isolated headlines, temporary inconveniences or regional developments that seem unlikely to affect anyone beyond their immediate surroundings. Only later, when enough connections become visible, does the larger picture begin to emerge.

And perhaps that is the most enduring lesson of all. The greatest challenges are not always the ones that arrive with the loudest warning. More often, they begin quietly, almost unnoticed, hidden within the ordinary rhythm of everyday life until the moment that rhythm changes—and the world realizes it has already entered a new chapter.

Tyler Durden Mon, 07/06/2026 - 05:00

World Cup Fans Drive Spending Surge In These US Host Cities

Bank of America has released new aggregated credit and debit card data showing that the World Cup is already driving a noticeable increase in retail spending activity across the tournament's 11 U.S. host cities.

According to BofA analyst Aditya Bhave, brick-and-mortar spending at restaurants and bars in host cities rose 5.3% year over year in the three weeks ending June 27, outpacing the 3.8% gain seen across the rest of the U.S.

Bhave noted that other forms of brick-and-mortar retail spending also accelerated in host cities, suggesting the tournament is providing a real-time boost for local restaurants, bars, and retailers.

Boston and Miami were exceptions, with restaurant and bar spending remaining flat and other retail spending slowing. Bhave said both cities hosted Scotland group-stage games and suggested that a heavy inflow of Scottish fans may have crowded out local spending.

Bhave noted that the data likely understates the full impact of the World Cup because it captures only spending by BofA customers.

Professional subscribers can read more notes on consumer here at our new Marketdesk.ai portal. 

Tyler Durden Mon, 07/06/2026 - 04:15

LEGO Faces Backlash Over Pride-Themed Content Aimed At Kids

Via American Greatness,

The Denmark-based toy company LEGO is facing criticism after promoting Pride-themed content on social media and its website. Parents accused the company of introducing LGBT themes to a brand primarily marketed to children.

Although LEGO produces some building sets for adults, the company markets most of its products to children. Many young consumers follow the brand on social media.

In a recent Instagram post, LEGO celebrated Pride Month with the caption, “Pride moments built, brick by brick. Swipe to see more of our LEGO colleagues’ stories.”

LEGO goes all out for lgbtq pride

This is a toy brand for children!!

They just posted this video promoting gay marriage and marching in Pride parades.

THIS is what they’re pushing on kids.

Absolutely disgusting! @LEGO_Group

Parents, BEWARE! pic.twitter.com/TzqIN7V7eM

— Libs of TikTok (@libsoftiktok) July 1, 2026

The accompanying slideshow featured LEGO minifigures recounting coming-out experiences, including one character attending a Pride parade and another depicting a male character proposing to his boyfriend.

Parents and social media users criticized the post, with several calling for a boycott of the company.

“LEGO is now openly pushing Pride parades, gay marriage, and rainbow ideology straight at children,” one commenter wrote on X.

“This isn’t ‘inclusion.’ It’s sexualizing childhood and grooming the next generation with adult themes.”

LEGO is now openly pushing Pride parades, gay marriage, and rainbow ideology straight at children.

This isn’t “inclusion.” It’s sexualizing childhood and grooming the next generation with adult themes.

Parents are waking up. Boycott time. Companies that target kids with this…

— ThePolarBear (@UnluckyIrishman) July 2, 2026

The commenter added, “Parents are waking up. Boycott time. Companies that target kids with this stuff deserve to lose customers… keep this garbage away from our children.”

In 2021, LEGO released a set titled “Everyone Is Awesome,” featuring 11 faceless minifigures displayed in the colors of the Progress Pride flag. The company labeled the set for ages 18 and older.

According to the information provided, the set’s designer, Matthew Ashton, said it was created with children in mind and reflected his own experience of coming out as a teenager.

“Children are our role models and they welcome everyone, no matter their background. Something we should all be aspiring to,” Ashton said.

“If I had been given this set by somebody at that point in my life, it would have been such a relief to know that somebody had my back. To know that I had somebody there to say ‘I love you, I believe in you. I’ll always be here for you.’ So, in a way, this set is not just for the LGBTQIA+ community. It’s for all of the allies — parents, siblings, friends, schoolmates, colleagues, etc. — out there as well.”

The company also promoted a Pride Month activity on its official website on June 1.

“It’s time to paint the town red, orange, yellow, green… basically a whole rainbow of color! That’s right, it’s Pride Month, and we’re celebrating the best way we know how: with LEGO® bricks!” the activity description states.

The page encouraged participants to create Pride-themed LEGO builds, stating, “This year, we want you to celebrate what makes you—and everyone you love—quite frankly, AWESOME.”

Tyler Durden Mon, 07/06/2026 - 03:30

Soaring Imports Push India's Crude Stocks To Near 1-Year High

India’s strategic and commercial crude oil inventories have jumped to a nearly one-year high as the world’s third-largest crude oil buyer boosted its imports to a record high in June, OilPrice reported.

As at the end of June, India’s crude oil stocks held in strategic, commercial, and refinery storage had increased to 104 million barrels, up from 90.5 million barrels at the end of April, according to data from commodity intelligence provider Kpler cited by Indian outlet Economic Times. Before the Iran war began, India held 107 million in crude oil inventories as of the end of February—the highest end-month level for the previous 12 months.

The war depleted inventories in March and April, before Indian refiners started raising imports from Russia and turn to Venezuela—both sources of supply that doesn’t need to transit the Strait of Hormuz.

By June, stocks were recovering and nearing the level from before the Iran war.

India imported a record high level of 5 million barrels per day (bpd) of crude oil in June, more than half of which - 2.6 million bpd - from Russia, thanks to the U.S. waiver (now expired) on sales of Russian oil already loaded on tankers.

Yet, India wants to lower its crude import bill, protect public finances, and become more resilient to supply shocks such as the Middle East conflict that crippled supply from the Strait of Hormuz. That’s why it is looking to boost energy security by diversifying import sources and expanding its strategic storage.

Currently, India’s underground Strategic Petroleum Reserve storage has a total capacity of 5.33 million metric tons of crude oil, equal to only 39 million barrels of crude oil, or eight days’ worth of India’s oil consumption.

India’s storage of just about a week of its roughly 5 million bpd of consumption, is well below the SPRs of many other large oil consumers, which exposes New Delhi’s vulnerability to sudden supply shocks.

Separately, in response to media reports that India is flipping Russian oil imports by exporting its products back to Russia, India’s Oil Minister, Hardeep Singh Puri, said that the country's refiners are not directly exporting any refined petroleum products to fuel-starved Russia, although some supplies from traders are likely reaching Russia.

Reports emerged earlier this week that Russia had started importing fuel from India by sea in a bid to ease the fuel shortages triggered by Ukrainian drone attacks on Russian refineries. In an exclusive Reuters report, industry sources revealed that an initial shipment of at least 60,000 metric tons (510,000 barrels) of gasoline has been dispatched from India via two tankers destined for Russian ports.

Hours after the report surfaced, India’s oil minister insisted that Indian refiners aren’t directly selling fuel to Russia.

“Indian companies are not selling fuels to Russia,” Puri said at a media briefing, but acknowledged that it is “possible that Indian-origin refined fuel is sold to Russia via traders.”

Gasoline from Indian refiner Nayara Energy, in which Russia’s top oil firm Rosneft holds a 49% stake, has been sold to Russia via traders, sources with direct knowledge of the deals told Reuters on Thursday. So it is likely that India-produced fuels are now reaching Russia via traders, as Moscow scrambles to alleviate a major fuel supply crisis.

Ukraine’s intensified drone strikes in recent months have now knocked offline an estimated 30% of Russia’s oil refining capacity. During peak summer demand, Russian refining throughput has sunk to a two-decade low.

In a rare public admission at the end of June, Russian President Vladimir Putin acknowledged that Russia faces fuel shortages and a fuel crisis that needs further government intervention to solve.

The fuel shortages that emerged in some regions in May have now reached the capital city Moscow, too, after Ukrainian strikes last month hit and sent Moscow’s Kapotnya refinery offline. The refinery is unlikely to resume fuel production before 2027 after suffering extensive structural damage from multiple strikes by Ukraine’s long-range drones, industry sources told Reuters last month.

Tyler Durden Mon, 07/06/2026 - 02:45

More Defense Spending, More Climate Redistribution: The EU Spins A $2.2 Trillion Wealth Transfer Machine

Submitted By Thomas Kolbe

Negotiations over the European Commission's next seven-year budget are entering their decisive phase. Should Ursula von der Leyen and her allies succeed with their plans, Germany will once again shoulder a substantial financial burden. By now, however, Germans have become accustomed to that reality.

Across the world, public debt levels are approaching dangerous flood marks. The global economy is effectively drowning in debt, with total public liabilities now exceeding 95% of global GDP. It is therefore only a matter of time before bond markets bring the debt party to an end, pushing interest rates—and with them debt-servicing costs—to levels governments can no longer afford. Such a reckoning would merely represent the logical consequence of political irresponsibility, contempt for taxpayers, and the megalomania of a political culture that continues expanding government on an ever-growing mountain of debt.

A four-decade bull market in sovereign bonds, characterized by steadily declining yields, came to an end roughly four years ago. Since then, interest rates have been rising as investors gradually lose confidence in both the political direction of Western governments and the relentless expansion of the administrative state. A turning point is approaching. Fiscal austerity is standing at the gates of an era defined by political extravagance.

For politicians like Ursula von der Leyen, however, austerity would amount to admitting that decades of debt-financed government expansion have led into a dead end. Few things are more alien to modern political elites than acknowledging failure. This is particularly true within Brussels, where the bureaucratic establishment and the ideological foundations of the European project remain firmly convinced that they are building a supranational European state on the right side of history.

Unsurprisingly, austerity is nowhere to be found in Brussels.

Instead, negotiations over the next seven-year EU budget are underway. The European Commission has floated a financial framework worth approximately €2 trillion. Funding for Ukraine-related military expenditures, broader European rearmament, and the enormous subsidy complex underpinning the Green Deal are all expected to come from higher member-state contributions and newly issued common debt. In doing so, Brussels continues to strengthen both its political authority and its influence over national governments.

Germany currently finances roughly one-quarter of the EU budget. Under the proposed framework, German taxpayers would ultimately contribute around €500 billion over the entire budget period. Last year alone Germany paid approximately €30 billion into the EU budget while receiving roughly €13 billion back, primarily in the form of agricultural subsidies and the ever-expanding subsidy machinery supporting Europe's green industrial policies and interventionist economic model.

Yet even a €2 trillion budget - already representing a leap into fiscal fantasy given the severe economic damage inflicted by years of excessive European regulation - is apparently no longer sufficient for Brussels.

Discussions are now underway to increase the budget by another €200 billion.

Leading the charge, unsurprisingly, is the European Commission itself: an insatiable bureaucracy working relentlessly to establish independent sources of taxation. Customs revenues, proceeds from emissions trading, plastic taxes—the imagination of Brussels appears limitless. At the same time, direct financial demands on member states continue expanding almost automatically, with ever-higher budget contributions treated as political routine despite growing conservative resistance across Europe.

Should the von der Leyen Commission succeed in making this fiscal leap, Germany's annual contribution to financing the European project would rise from roughly €30 billion today to approximately €78.6 billion.

For taxpayers, the implications are profound. An entirely new layer of government—complete with its own bureaucracy and increasingly its own taxation powers—has gradually positioned itself above existing national institutions. Since the joint borrowing undertaken during the pandemic and the issuance of the massive NextGenerationEU bonds, Brussels has steadily transformed itself into an independent borrower on international capital markets.

Officially, the German government still opposes granting the European Commission broader taxation powers and objects to dramatically expanding the EU budget. Yet all indications suggest that Berlin will ultimately shift the fiscal burden to Brussels itself, paving the way for larger common bond issuance—or some comparable mechanism—to finance the growing central apparatus.

Beginning in 2028, repayment of the €750 billion NextGenerationEU debt will commence. Those obligations, spread over subsequent years, must eventually be repaid to investors. Since these resources simply do not exist, Europe's capitals will almost certainly reach the same conclusion: refinance the liabilities through continuous new bond issuance, effectively burying what remains of the European Union's original prohibition against common sovereign debt.

In many respects, the transformation of Europe's financing structure resembles a financial evolution toward a European superstate. Ultimately, common liability for Brussels' debts appears virtually inevitable. The political and institutional path back has largely disappeared.

For German taxpayers, this strategy amounts to little more than witnessing another familiar fiscal shell game.

Brussels will almost certainly continue creating new revenue streams through customs duties, emissions trading, plastic taxes, and whatever additional levies policymakers may devise.

The remaining financing gap will inevitably be covered through Eurobonds issued on capital markets.

Such policies carry significant inflationary risks, as additional sovereign borrowing expands the money supply and places upward pressure on prices. At the same time, government borrowing increasingly crowds private investment out of credit markets, raising financing costs for productive businesses while strengthening the role of the public sector.

The consequences are already becoming visible. Europe's downward spiral of declining prosperity is accelerating. It is a tragic process of economic deterioration—one that is increasingly likely to culminate in a major sovereign debt crisis.

* * * 

About the author: Thomas Kolbe, a German graduate economist, has worked for over 25 years as a journalist and media producer for clients from various industries and business associations. As a publicist, he focuses on economic processes and observes geopolitical events from the perspective of the capital markets. His publications follow a philosophy that focuses on the individual and their right to self-determination.

Tyler Durden Mon, 07/06/2026 - 02:00