Zero Rss

G7 Protesters Smash Windows, Set Tesla On Fire In Geneva

Authored by Chris Summers via The Epoch Times,

Protesters smashed windows at a United Nations agency and set fire to a Tesla vehicle on June 14 during a protest march in Geneva, Switzerland, against the holding of the G7 summit, just across the border in the French town of Evian-les-Bains.

A Tesla car burns during a protest against the G7 summit, across the border in France, in Geneva, Switzerland, on June 14, 2026. Denis Balibouse/Reuters

Around 20,000 people took part in the march that was largely peaceful, according to police, who also said they confiscated a number of knives and pyrotechnic devices.

U.S. President Donald Trump is among the leaders attending the June 15-17 summit, which is being protected by a high-security cordon following an agreement between the French and Swiss governments.

The June 14 march was organized by the so-called NoG7 coalition, which has posted a list of "internationalist demands" on its blog, which include ending trade relations with Israel, dismantling U.S. military bases in Europe, and dissolving the G7 organization.

Several of the demonstrators said the G7 was a symbol of the world's wealthiest countries.

"To me, it's a meeting of the rich that shows once again how the rich can become even richer while the poor are left behind," Pippa Saugy, one of the protesters, said.

The Swiss government has deployed 4,000 soldiers to support the police, while France has sent more than 13,000 police and gendarmerie officers to secure the summit.

One of the protesters, Mattia Piccard, said he resented the large police presence on June 14.

"This is an attempt to frighten demonstrators, to frighten people and discourage them from coming out to protest," Piccard said.

Geneva resident Susanne Haldemann said she felt sad for the owner of the burned Tesla, who had probably worked hard to pay for it.

She said it was unfair that he should pay for "this anger and that frustration" of people, especially the younger generation.

Yann Smid, who works in Geneva, said people in the city had been braced for protests.

"People know that if Geneva plays a very important role, there would be protests, and it happened in the past," Smid said. "I think they are used to it, and obviously it's just a question of disruption."

The French and Swiss authorities have imposed restrictions on border crossings, and, apart from the June 14 march, which was authorized, there is a ban on public gatherings in Geneva.

Trump will join the leaders of France, Germany, Japan, the UK, Canada, Italy, and the European Union at the summit.

The agenda is expected to include global trade, immigration, geopolitical conflicts, and other key issues, although the official G7 website states that the program still has not been finalized.

The French Foreign Ministry says more than 110,000 people commute across the border every day to work in Geneva, and last week it said the number of French border control officers was being increased from 60 on a normal day to 800.

Airspace Restrictions, Road Closures

There will be airspace restrictions, patrols on Lake Geneva, and road closures. Only seven of the 35 highway border crossings will be open.

In 2003, when the G8 summit was held in Geneva, dozens of storefronts were vandalized by anti-globalization protesters.

Storefronts in Geneva, just over the border in Switzerland, were boarded up last week, and the World Trade Organization, which was targeted in Seattle in 1999, closed its offices and told staff to work from home until the summit is over.

France and Switzerland have agreed to a military cooperation agreement in the run-up to the summit, and G7 leaders will arrive at Geneva's international airport - which is in Switzerland but almost surrounded by French territory - before crossing the border to Evian-les-Bains under heavy security.

Residents of Evian-les-Bains, known for its bottled water, have been given special access permits, and the zone around the Hotel Royal, where the summit will take place, will be cordoned off.

People hold a protest against the G7 summit, in Geneva, Switzerland, on June 14, 2026. Umit Bektas/Reuters Tyler Durden Mon, 06/15/2026 - 09:45

US Industrial Production Disappoints In May

Despite strong ISM Manufacturing data, US Industrial Production disappointed in May, rising just 0.1% MoM (vs +0.3% exp), but April's print was revised up to +0.9% MoM. Put together, that lifted the YoY rise in industrial production to +1.67% - its highest since Nov 2025...

Manufacturing excluding motor vehicles and parts was also flat in May, according to the Fed report.

Mining output, which includes energy extraction, increased 1.3%.

Utilities output fell.

US Manufacturing production was unchanged in May (below the 0.3% rise expected), but thanks to an upward revision, the YoY rise was +1.4%, the highest since Nov 2025...

May's flat-line comes after four months of gains to start the year.

The data showed a split between durable goods manufacturing, which continued to advance, and nondurable goods manufacturing, which declined.

That decrease reflected a pullback in output for petroleum and coal products, plastics and rubber, and textiles.

And finally, on the bright side, Capacity Utilization continues to rise, now at its highest in a year...

The report is somewhat at odds with signals from recent surveys, which have indicated a pickup in activity amid customer stockpiling induced by the war, rising defense-related orders and the ongoing data center buildout.

Monday’s figures may be a sign that surging costs are starting to bite after a separate report last week showed prices received by producers rose in May from a year earlier at the fastest pace since 2022.

Taken all the above, we see this as favoring the doves very modestly.

Tyler Durden Mon, 06/15/2026 - 09:20

"This Chart Should Stop You Cold In Your Tracks"

Submitted by QTR's Fringe Finance

One of my favorite contrarian analysts to read posted a great thread this week noting what he sees as one of the most overlooked risks facing U.S. equities in 2026.

Gordon Johnson argues that an unprecedented wave of equity issuance could overwhelm available investor capital. In a great thread on X, Johnson, of GLJ Research, argued that investors should not interpret the current IPO boom as a sign of market strength.

Instead, he contends that history suggests record issuance periods often occur near major market peaks, when companies and insiders are most eager to sell stock into highly favorable conditions.

“This chart should stop you cold in your tracks.”

— Gordon Johnson, GLJ Research

His argument begins with a striking statistic. According to Johnson, 2026 U.S. IPO proceeds for operating companies are on pace to reach roughly $200 billion, exceeding the combined totals of both 1999 and 2000 during the dot-com era and far surpassing the approximately $119 billion raised during the speculative peak of 2021.

Rather than viewing that figure as bullish, Johnson sees it as a warning signal. In his view, record levels of stock issuance have historically coincided with excessive optimism and have often preceded periods of poor market performance.

Johnson argues that the headline IPO figures actually understate the scale of what is occurring. IPOs represent only one category of equity issuance. He notes that companies are also raising capital through follow-on offerings, at-the-market programs (ATMs), and secondary share sales.

We all know about the large AI-related equity raises that have been announced over the last two weeks: Alphabet’s $84.75 billion offering, Meta’s proposed multi-tens-of-billions stock raise, Oracle’s roughly $20 billion equity component within its broader financing plan, and Super Micro Computer’s $7 billion equity and equity-linked financing.

He argues that when these are added to the IPO pipeline, the total amount of stock being sold to investors becomes significantly larger than the official IPO statistics suggest:

With SpaceX, then OpenAI, then Anthropic stacking up, the pipeline points to ~$100B/month hitting the tape over the next 3–4 months. Now the only question that matters: who absorbs it?

Here's the cash on the other side. US personal savings rate: 2.6% of ~$17.93T disposable income. That's ~$39B/month of new savings — for the ENTIRE country.

You cannot soak up ~$100B/month of stock with ~$39B/month of cash. The math doesn't math.

Put it in scale. ~$100B/month of issuance ≈ the entire US savings rate (~$1T/yr). SpaceX alone ~$80B. Then OpenAI. Then Anthropic. Then what? This doesn't "attract" capital. It DRAINS the market of cash — one mega-deal at a time.

The heart of Johnson’s thesis centers on a basic supply-and-demand question: where will the money come from?

His broader point is that equity issuance does not magically create demand. Instead, he argues that large offerings require investors to redirect existing capital. Every dollar committed to a new IPO or secondary offering is a dollar that cannot be deployed elsewhere in the market. Under this framework, mega-deals do not attract new money so much as compete for a limited pool of available capital, potentially draining liquidity from existing stocks.

Johnson believes many investors are currently positioned for a strong second half of 2026, expecting enthusiasm surrounding artificial intelligence and high-profile technology offerings to drive markets higher. He takes the opposite view. In his analysis, the sheer volume of stock supply could become a headwind for equity prices. When supply grows faster than demand, he argues, prices often become the mechanism that restores balance.

Johnson notes that, with regard to the SpaceX IPO, certain institutional barriers appear to have been lowered ahead of the offering. Specifically, he points to Fidelity’s reported reduction of account minimum requirements and Nasdaq’s decision to shorten the waiting period before index eligibility. Johnson sees these changes as evidence that market participants are attempting to broaden the pool of potential buyers ahead of what could become one of the largest IPOs in history.

• Morningstar Just Issued The Most Bearish SpaceX Valuation Yet

• Skeptics Step Back From SpaceX

• The SpaceX IPO May Be The AI Bubble’s Final Test

Johnson argues that if SpaceX enters major indexes shortly after listing, passive investment vehicles could be forced to purchase large amounts of stock regardless of valuation. He estimates that index funds tracking the Nasdaq 100 may eventually need to buy tens of billions of dollars worth of shares. In his interpretation, sophisticated investors may seek to position themselves ahead of that demand by raising cash before the IPO and purchasing shares after index-related buying begins.

Johnson describes this as distribution rather than wealth creation.

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He argues that history offers several examples in which insiders used periods of intense investor enthusiasm to sell stock at elevated valuations. He specifically references the dot-com boom of 2000 and the SPAC-driven speculation of 2021 as periods when large amounts of equity were sold to public investors shortly before significant market declines.

Underlying the entire thread is Johnson’s central historical claim: large-scale equity issuance has consistently been a bearish signal for stocks. He points to the record issuance environment of 2021, which was followed by weakness later that year and a severe bear market in 2022. While he acknowledges that today’s circumstances are different in many respects, he believes the relationship between supply and demand remains unchanged.

For Johnson, the key question facing investors is not whether high-profile companies such as SpaceX, OpenAI, or Anthropic are exciting businesses. Rather, it is whether the market has sufficient capital to absorb an extraordinary amount of new stock issuance without putting pressure on existing asset prices.

His conclusion is straightforward: investors should approach the coming wave of offerings with caution. Record issuance, in his view, is not evidence of unlimited demand. It may instead be a sign that companies and insiders believe current market conditions are an attractive time to sell.

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QTR’s Disclaimer: Please read my full legal disclaimer on my About page here. This post represents my opinions only. In addition, please understand I am an idiot and often get things wrong and lose money. I may own or transact in any names mentioned in this piece at any time without warning. Contributor posts and aggregated posts have been hand selected by me, have not been fact checked and are the opinions of their authors. They are either submitted to QTR by their author, reprinted under a Creative Commons license with my best effort to uphold what the license asks, or with the permission of the author.

This is not a recommendation to buy or sell any stocks or securities, just my opinions. I often lose money on positions I trade/invest in. I may add any name mentioned in this article and sell any name mentioned in this piece at any time, without further warning. None of this is a solicitation to buy or sell securities. I may or may not own names I write about and are watching. Sometimes I’m bullish without owning things, sometimes I’m bearish and do own things. Just assume my positions could be exactly the opposite of what you think they are just in case. If I’m long I could quickly be short and vice versa. I won’t update my positions.

As of May 20, 2026 I personally no longer actively trade (read my story here). My investing/saving is done by recurring contributions mostly to sector ETFs and a few select equities, trusted third parties who oversee my accounts, and advisors. Such advisors or funds, through individual equities, options, index funds, mutual funds, ETFs, or other securities, may have positions in, exposure to, or holdings of names mentioned herein that I know nothing about. Basically, via index funds, ETFs and individual equities it is possible I could own, have exposure to, or not own anything at any point. As of the same date, May 20, 2026, in an attempt to lead a healthier lifestyle, I’ve also excluded myself from fantasy sports, sports betting, online and in-person casinos and prediction markets.

And all positions can change immediately as soon as I publish this, with or without notice and at any point I can be long, short or neutral on any position. You are on your own. Do not make decisions based on my blog. I exist on the fringe. If you see numbers and calculations of any sort, assume they are wrong and double check them. I failed Algebra in 8th grade and topped off my high school math accolades by getting a D- in remedial Calculus my senior year, before becoming an English major in college so I could bullshit my way through things easier.

The publisher does not guarantee the accuracy or completeness of the information provided in this page. These are not the opinions of any of my employers, partners, or associates. I did my best to be honest about my disclosures but can’t guarantee I am right; I write these posts after a couple beers sometimes. I edit after my posts are published because I’m impatient and lazy, so if you see a typo, check back in a half hour. Also, I just straight up get shit wrong a lot. I mention it twice because it’s that important.

Tyler Durden Mon, 06/15/2026 - 09:05

Trump Threatens 100% Tariff On French Wines Over Digital Services Tax

Update (0810ET): France's President Emmanuel Macron said Monday he wanted to have a "respectful but firm discussion" with Trump.

"We will have a respectful but firm discussion," Macron told TF1 as he prepared to host Trump and other leaders at a G7 summit.

"Tariffs don't do anyone any good, especially tariffs between G7 countries," Macron said.

As Tom Ozimek reported earlier via The Epoch Times, U.S. President Donald Trump on June 15 threatened to impose a 100 percent tariff on French wines and champagne unless France eliminates its digital services tax on large American technology companies.

Trump said he delivered the warning directly to French President Emmanuel Macron, demanding that Paris scrap its 3 percent levy on major U.S. tech firms or face steep duties on some of France’s best-known exports.

“I asked him not to charge American companies, and if they do, I have no choice but to charge a 100% tariff on all champagnes and all wines coming out of France,” Trump told the New York Post in an interview. “All [Macron] has to do is get rid of the sales tax, and he wouldn’t have that kind of pressure.”

Trump’s threat prompted concern from French exporters, who warned of further strain on an industry that depends heavily on overseas markets.

“This new threat is bad news for our industry, which relies heavily on exports,” French wine and spirits exporters association FEVS said.

The group called for “responsible behavior” and urged France and the United States to maintain balanced and constructive trade relations “in the interest of both economies.”

France’s digital services tax, introduced in 2019, imposes a 3 percent levy on revenue generated in France by large digital companies. The tax applies to firms with more than about $29 million in French revenue and roughly $870 million in global revenue.

The measure has long drawn criticism from Washington, with the United States saying that it disproportionately targets American technology companies.

Experts say that even a relatively low digital services tax (DST) rate can lead to high effective tax burdens because revenues, rather than profits, are taxed.

“Because DSTs tax revenues, not profits, a company with a 10 percent profit margin would face a 60 percent effective tax rate on digital services provided in France,” economist Cristina Enache of the Tax Foundation Europe wrote in an October 2025 note.

Harvesters fill a press with Chardonnay grapes at the Mailly-Champagne cooperative during the 2025 Champagne harvest on August 26, 2025. Francois Nascimbeni/AFP via Getty Images

Enache described the French tax as discriminatory and cited research noting that France’s DST is ill-conceived because, while it purports to target big digital platforms, the cost mostly falls on consumers.

“The French DST, which functions like a tariff on certain services, is designed to be discriminatory,” Enache wrote. “It targets industries largely dominated by US companies, and the discrimination would be even greater if the revenue threshold is increased.”

Digital Tax Dispute

The United States has repeatedly challenged digital services taxes adopted by France and other countries. During Trump’s first term, the Office of the U.S. Trade Representative launched a series of Section 301 investigations into digital taxes that Washington viewed as discriminatory toward American companies.

“President Trump is concerned that many of our trading partners are adopting tax schemes designed to unfairly target our companies,” then-U.S. Trade Representative Robert Lighthizer said in a June 2020 statement. “We are prepared to take all appropriate action to defend our businesses and workers against any such discrimination.”

Trump has previously threatened tariffs on French alcohol imports. In January, he said he would impose a 200 percent levy on French wines and champagne if France declined to participate in the U.S.-led Board of Peace initiative for Gaza. In March 2025, he threatened a 200 percent tariff on alcohol imports from France and other European Union countries after Brussels announced plans to impose a 50 percent tariff on American whiskey.

The stakes are significant for France’s wine industry. Exports of French wines and spirits to the United States account for roughly one-quarter of the sector’s global sales, valued at about $4.4 billion annually, per FEVS data for 2024.

Wine and spirits imported from the European Union currently face a 15 percent U.S. tariff, a rate French officials have been lobbying to reduce since Trump and European Commission President Ursula von der Leyen reached a U.S.–EU trade agreement in Scotland last summer.

Last spring, amid an intensifying trade dispute between the United States and the EU, Commerce Secretary Howard Lutnick said that Trump’s tariff threats were intended to restore balance and fairness between trading partners.

“The EU has just so many years treated us so harshly, they just can’t stop,” Lutnick told Bloomberg TV in a March 2025 interview. “Their tariffs are way up here, and our tariffs are down here. How about: Relax. Let us balance it. We are your largest and most important trading partner. Treat us with respect and let’s get a little balance. Trump is out there saying: balance, balance, balance.”

Tyler Durden Mon, 06/15/2026 - 08:50

US Futures, Global Stocks Surge, Oil Tumbles On Iran Deal

Global markets soared in a risk-on rally following the announcement of a US-Iran deal Sunday night. Stocks and bonds rallied while oil tumbled to a three-month low after the US and Iran said they have reached an interim agreement to reopen the Strait of Hormuz and halt the war. This will provide a 60-day window for negotiation. As of 8:00am ET, Nasdaq 100 futures advanced 2.1%, while those for the S&P 500 rose 1.3%. In the pre-market, Mag 7 are all higher led by NVDA (+2.1%), META (+2.0%) and MSFT (+1.7%). European stocks climbed 0.7% to shatter a pre-war record high while Asian stocks were similarly buoyant. Bond yields are 2-5bp lower led by the belly of the curve and the 10Y trading around 4.4%. The USD is lower. Brent fell to around $83 a barrel and WTI slid below $80 for the first time since the start of the war. Gold and Bitcoin gained strongly, while the dollar lost ground against all major currencies. European bonds outperformed global peers. Metals are higher led by gold (2.8%) and silver (+3.9%). US economic data calendar includes June Empire manufacturing (8:30am), May industrial production (9:15am) and June NAHB housing market index (10am)

In premarket trading, miners, cruise-line operators and airlines gain, while energy stocks fall, on the US-Iran deal. Mag 7 stocks are all higher (Amazon +2.4%, Nvidia +2%, Alphabet +1.8%, Meta +1.5%, Microsoft +1.5%, Tesla +1.5%, Apple +0.7%)

• Hawkeye 360 (HAWK) is up 6.1% after Jefferies raised its recommendation on the defense technology company to buy from hold on revenue upside from defense demand.
• Old Dominion (ODFL) falls 1.1% after Citi analyst Ariel Rosa cut the recommendation to sell from neutral, writing that optimism about the trucking industry seems to be reflected in the valuations of sector players.
• Roku Inc. (ROKU) shares rise 2.5% after Fox Corp. agreed to buy the company for $160 per share in cash and stock. Fox (FOXA) shares fall 13%
• SpaceX (SPCX) jumps 6% after its blockbuster debut Friday vaulted it into the ranks of the world’s most valuable public companies.

In other weekend news, the US government has ordered Anthropic to disable access to its most advanced AI platforms for all foreign nationals after discovering it’s possible to “jailbreak” the Fable 5 AI model. 

The agreement between Washington and Tehran signals an end a three-month conflict that has claimed thousands of lives and upended financial markets. A pickup in energy flows would also help unwind the premium embedded in crude prices, offering comfort to policymakers battling inflation.

“Risk appetite is back on, but the issue is to know whether the Strait fully reopens,” said Christopher Dembik, senior investment manager at Pictet Asset Management. “Trump doesn’t have a great track record of lasting deals in the Middle East, so there’s a risk of tensions spiking back during the summer.”

Investors are awaiting details of the US-Iran agreement ahead of a formal signing scheduled for Friday in Switzerland. The Strait of Hormuz will reopen after Friday’s signing of the deal, President Donald Trump said on social media. The event would then trigger the start of 60 days of talks on Iran’s nuclear program. Trump told the New York Times that if an agreement isn’t reached on nuclear, he could restart military attacks. For its part, Iran will allow free transit through the waterway for only 60 days, Fars news agency reported, citing a person familiar with the matter.

“It’s not a permanent solution, so a significant risk premium will likely be priced into markets,” said George Moran, European macro strategist at RBC. “But, if oil stays around $80-85, it certainly takes a good amount of pressure off central bankers’ shoulders.”

Investors bet that a reopening of the Strait of Hormuz would likely help ease inflation pressures and reinforce expecations for lower interest rates. Swaps traders are pricing about a 75% chance of a quarter-point Federal Reserve interest-rate hike by December, down from about 80% on Friday.

The agreement sees some hedge funds reopening pre-war playbooks, while some market participants caution the economic fallout from the conflict remains unresolved. Reactions in other assets include Bitcoin rallying to its highest level in nearly two weeks, while WTI crude oil slumped around 5%, although considerable challenges remain to relieving a profound global crunch. Hormuz trade will take months to return to normal. 

Turning back to the market, the US stock market is poised to see a surge in new equity issuance, with JPMorgan estimating share sales will add roughly $1.5 trillion of stock to the market over the next two years. It could herald a seismic shift, compared to buybacks by S&P 500 companies alone erasing $12 trillion worth of stock over 20 years.

Meanwhile, with everyone flooding back into risk, the cost to fund US equity positions is jumping unexpectedly, due to the combination of the AI-driven stock rally, the massive growth of leveraged ETFs and SpaceX’s $75 billion listing. The financing spreads embedded in S&P 500 Index futures have opened up the biggest gap to Treasury financing rates since late 2024. 

In Europe, the Stoxx 600 gains are led by autos, industrials and construction stocks, though the benchmark has pared its rise. Here are the biggest movers Monday:

• Banca Generali climbs as much as 9.5% to a new record after Jefferies upgraded the Italian private bank to buy, based on a turn in flows and better visibility
• IQE shares rise as much as 20% after the semiconductor company announced a multiyear agreement to supply indium phosphide wafers to Tower Semiconductor
• Técnicas Reunidas rises as much as 10% after the Spanish company said it has been awarded two engineering, procurement and construction contracts for upstream facilities to handle oil field production in the Middle East
• Belimo shares advance as much as 9.2% to the highest since July 2025 after Morgan Stanley upgraded the company to overweight, saying much of the company’s revenue growth in coming three years will come from data centers
• Corbion shares rise as much as 8.9% to their highest since February 2025 after the Dutch company got an upgrade to buy at Berenberg, which cited higher fish oil prices and the potential for further consolidation in the food ingredients sector
• Energy and defense stocks are among those underperforming as European stocks rise to a new record, with most sectors trading higher after the US and Iran reached an interim agreement to reopen the Strait of Hormuz
• Kesko falls as much as 11% after the Finnish retailer said it would buy building materials distributor Dahl’s business in Sweden, Norway, and Denmark from Saint-Gobain for €1.2 billion excluding debt. Kesko will sell new shares as part of the financing
• Telia falls as much as 4%, the most since January, after being downgraded to sell from hold at Berenberg, which said expectations of stronger growth are already reflected in the price
• Vistry shares fall as much as 5.6% to the lowest since 1999 after analysts said the homebuilder is cutting prices more aggressively than peers and faces a greater impact from rising build costs
• Luceco slides as much as 12%, retreating from the 2022-high hit at the end of last week, after the maker of electrical products said CEO John Hornby is retiring
• Shares in AJ Bell, DWS and Aberdeen slip after Goldman Sachs downgrades the three investment firms, arguing that recent rallies leave limited upside at a time when the sector faces increased competition and a continued shift toward passive investment
• UCB drops as much as 4.3% after Barclays downgraded the stock to equal-weight from overweight, citing limited upside for the Belgian biopharmaceutical company’s shares over the next 12 months

Asian stocks advanced after the US and Iran announced an interim agreement to reopen the Strait of Hormuz, easing concerns over energy-supply disruptions that have driven up oil prices. The MSCI Asia Pacific Index climbed as much as 3.2%, on track for its biggest two-day rally since March 2022. Japan’s Nikkei 225 soared to a record high, while South Korea’s Kospi and the Philippine index gained more than 5%. Most other regional markets were in the green. The renewed flow of energy under the peace deal is expected to lower inflationary pressures ahead of interest rate decisions this week from the Federal Reserve and other central banks. The threat of tighter monetary policy has clouded the outlook for growth following the artificial intelligence boom of the past few years. Among key factors being watched locally, the Bank of Japan is widely expected to raise its benchmark interest rate to the highest level since 1995 in its decision due Tuesday. Sectors to Watch

• Chinese electric truck and battery maker stocks rise after the government announced a plan to scale up new‑energy heavy-duty trucks, targeting 40% market penetration.
• Chinese chip stocks advance as risk appetite improves, with sentiment further boosted by a report that ByteDance is in talks with China’s Iluvatar CoreX to buy AI chips.
• Asian gold-related stocks follow precious metal prices higher after the US and Iran reached a deal to reopen the Strait of Hormuz.
• Asian energy shares fall, tracking a slump in oil, after the US and Iran said they reached an interim agreement to reopen the Strait of Hormuz. Airline stocks rise.
• InnoScience Suzhou Technology’s shares jump as much as 12% in Hong Kong after China’s top court backs the company’s case and blocks Infineon Technologies from selling gallium nitride products in the country.
• Chinese brokerage stocks rise as investors rotate into cyclicals on improved sentiment from Iran peace deal and earnings outlook.
• Japanese space industry stocks plunged after SpaceX surged on its first day of trading in the US Friday.

In rates, treasuries hold opening gap higher, with futures just off session highs in early US session and front-end yields 4bp-5bp lower. Price action is driven by slide in oil prices after the US and Iran reached agreement to open the Strait of Hormuz. Fed rate-hike expectations shift further into the future, with a 25bp move fully priced in by March. Treasury yield curve steepens as front-end tenors outperform, widening 2s10s spread by about 1bp, 5s30s by 2.5bp; 10-year is around 4.44% vs session low 4.418% reached in Asia session, slightly lagging bunds and gilts in the sector.  Treasury auctions this week include $13 billion 20-year bond reopening Tuesday and $24 billion 5-year TIPS reopening Thursday. IG dollar issuance slate includes a couple of offerings so far; dealers forecast about $25 billion this week, concentrated ahead of Wednesday’s Fed meeting.

In commodities, Brent drops to about $83/barrel and WTI is below $81, down 5% to the lowest since the start of the Iran war. Gold prices are also rising above $4,300/oz on reduced rate-hike bets. The Bloomberg Dollar Spot Index is off its lows but still down against most major currencies.

US economic data calendar includes June Empire manufacturing (8:30am), May industrial production (9:15am) and June NAHB housing market index (10am)

Market Snapshot

Top Overnight News

• The US and Iran said they reached an interim agreement to reopen the Strait of Hormuz, setting the stage for 60 days of negotiations on the fate of Tehran’s nuclear program. Iran will allow free Hormuz transit during that period under the pact. Both sides will meet in Switzerland on Friday to sign a deal. No text of the accord has been released. BBG
• The stock market is starting to expand again after years of shrinking — and potentially at a scale not seen since the dot-com era. For the better part of two decades, a defining feature of the US stock market has been scarcity. Year after year, shares disappeared from public hands, with buybacks by S&P 500 companies alone erasing nearly $12 trillion worth. BBG
• Treasuries climbed across the curve as investors dialed back expectations for inflation and Fed rate hikes. The reported deal may help alleviate pressure on Kevin Warsh before this week’s policy meeting. BBG
• European Central Bank President Christine Lagarde warned that high energy prices are starting to feed through to other parts of the economy. Lagarde said the ECB will take measures if they start to feel second-round effects, such as wage increases, and are looking at underlying inflation. BBG
• Prices are likely to stay elevated for longer even if the war in Iran were to end soon, Bundesbank President Joachim Nagel said in an interview with Deutschlandfunk. BBG
• The UK announced a full ban on under-16s using social media from early next year in one of the strictest online crackdowns in the democratic world. BBG
• Russia’s ballistic-missile attacks against Ukraine have grown in ferocity and magnitude in recent weeks because Russian military planners are exploiting one of Ukraine’s greatest weaknesses: The Ukrainian military does not have enough Patriot missile interceptors to keep up with the barrages. NYT
• President Donald Trump has said he will hit France’s wine industry with a 100% tariff on exports to the U.S. if it does not scrap its digital services tax on U.S. technology companies. The warning comes ahead of this week’s G7 meeting in Évian-les-Bains, France. CNBC
• South Korea's stock market is approaching a milestone of potentially being considered for MSCI Inc.'s developed-market status after surging more than 90% this year. Most investors expect MSCI to keep Korea in the emerging-market camp for now, but believe it's a matter of time before Korea is classified as a developed market. BBG
• JPM Market Intel team: "We flipped to Tactically Bullish from the previous cautious stance because a potential US–Iran agreement could catalyze a broad risk-on impulse across equities, supported by strong fundamentals. That said, the historical pattern suggests that “everything rally” can fade into concentrated leadership following the initial impulse"
• Volatile market rotations during the past week continued to follow the pattern of the sharpest Momentum rallies in recent decades. Before the sell-off that started two weeks ago, a narrow-breadth Momentum rally had driven the sharpest two-month S&P 500 return since 1971, when scaled relative to volatility. Following similarly sharp rallies in the past, the Momentum factor has usually struggled during the subsequent few months. In addition to the historical precedent, the current market characteristics of elevated trading leverage, still-narrow market breadth, and uncertainty about both the macro outlook and the AI build-out suggest volatility will persist. Goldman

Weekend Iran War Updates

• Over the weekend, the US and Iran announced a 60-day peace framework, marking a significant de-escalation of the conflict. Iran will reopen the Strait of Hormuz in exchange for the US lifting its naval blockade, waiving sanctions on Iranian oil and releasing part of Iran's frozen assets. Regarding uranium, Iran would be allowed to dilute enriched uranium on site, while the 60-day window allows for further negotiations on its enriched uranium programme. The deal also covers Lebanon, with Pakistan's PM posting on X that the pact called for the immediate and permanent termination of military operations on all fronts, including Lebanon.
• A source told Fars that the text of the MoU underwent changes that have definitely and explicitly emphasised the issue of exercising Iranian-Oman sovereignty over the Strait of Hormuz. It is now written that the future of the administration of maritime services in the Strait of Hormuz will be "determined" by Iran and Oman. Furthermore, the change now writes that Iran will only accept ships for 60 days of free passage. That is, the US has accepted the principle of receiving fees and has only taken a 60-day discount from Iran. But after these 60 days, Iran intends to benefit from the financial revenues generated by the traffic. 
• Israeli Defence Minister Katz said "we oppose the withdrawal of the IDF from Lebanon... have made it clear to US President Trump". If Iran attacks Israel because of events in Lebanon, "we will strike it with full force and make sure it clearly understands the gap in capabilities." 
• Israel's Finance Minister said that "the agreement is bad for the entire world. We will have to continue the campaign in creative ways." 
• Israeli National Security Minister Ben-Gvir said US President Trump's agreement does not bind us in any way. 
• US and Iran to hold preparatory talks in Doha before deal signing, AFP reported citing a diplomat. 
• UKMTO receives report of an incident 14 Nautical Miles south of Yemen coast.
• US President Trump posted on Sunday, "The Deal with the Islamic Republic of Iran is now complete. Congratulations to all! I hereby fully authorize the toll-free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow!"
• US President Trump said in a New York Times phone interview that he reached a deal, despite objections from Israeli PM Netanyahu, whom he described as "very difficult", while Trump added the US is to resume Iran strikes if it can't reach a nuclear accord. Trump also stated that the deal is to ensure the Strait of Hormuz is permanently toll-free and that the MoU suspends tolls in the Strait for 60 days.
• Pakistan's PM Sharif said, following intensive talks, we are pleased to announce that the peace deal between the US and the Islamic Republic of Iran has been reached, with the official signing ceremony to take place on Friday, 19th June in Switzerland. Sharif also stated that both sides have declared an immediate and permanent termination of military operations on all fronts, including in Lebanon, and that with an agreement now in place, the mediators will facilitate a series of meetings this week.
• Iran's Deputy Foreign Minister Gharibabadi said the text of the memorandum of understanding has been finalised and an official signing of the MoU take place on Friday in Switzerland, while negotiations for a final deal will be held for a period of 60 days and they will take their own measures if they witness breaches from the other side. Gharibabadi said the MoU text will be published after official signing, but does not mean trust in the enemy, as well as noted that among the topics to be discussed in the 60-day negotiations are ending sanctions, mechanisms for Iran's reconstruction, and establishing mechanisms to monitor all parties' commitments.
• Iran's Foreign Ministry said an immediate and permanent end to the war and military operations on all fronts is effective Sunday night, while it added that talks are contingent on the release of assets and the lifting of sanctions.
• Iranian media Mehr News reported that the US-Iran 14-point MoU includes a US commitment to lift sanctions, withdraw its forces from around Iran, lift the naval blockade, reopen the Strait of Hormuz, lift oil sanctions, and release frozen Iranian funds; nuclear issue pushed back by 60 days for final agreement. Additionally, the US is required to present a plan to rebuild Iran’s economy, while the final negotiations between the two countries should focus on nuclear and economic issues, without discussing Iran’s missile program. This text still needs to be reviewed and finalized by the relevant institutions in Iran. 
• US official denied Iran's claim of a USD 12bln unconditional fund release, stating that any release of Iranian funds is tied to a pay-for-performance deal, according to Axios' Ravid.
• Iran's chief negotiator/Parliament Speaker Ghalibaf and Foreign Minister Araghchi will travel to Geneva to sign the agreement, while US VP Vance is reported to sign on behalf of Washington, according to NYT. It was also reported by Axios that US VP Vance will meet with Iran's Parliamentary Speaker Ghalibaf in Geneva on Friday to sign the US-Iran agreement.
• Mehr News reported continued violations of the ceasefire, stating that Nabatiyeh and Kafrmanah in southern Lebanon were targeted by Israeli artillery shelling.

A more detailed look at global markets courtesy of Newsquawk

APAC stocks rallied following the announcement that the US and Iran reached an interim agreement to end the hostilities and reopen the Strait of Hormuz. The deal, which is scheduled to be signed on Friday, immediately ends the US naval blockade against Iran and provides time for negotiations towards a final deal to be held for a period of 60 days. However, there are some differing views between the sides regarding the release of funds, with Iran claiming a USD 12bln unconditional fund release, which a US official pushed back on, stating that any release of Iranian funds is tied to a pay-for-performance deal, while President Trump warned that the US would resume Iran strikes if it can't reach a nuclear accord. ASX 200 was led higher by outperformance in the mining, materials and resources sectors, with notable strength seen in gold miners, while energy was at the other end of the spectrum owing to the reaction in underlying commodities to the deal to extend the ceasefire and open the Strait of Hormuz. Nikkei 225 surged to a fresh record high above the 69,000 level with tech, manufacturing and heavy industry stocks boosted amid the lower oil prices and peace agreement. Hang Seng and Shanghai Comp tracked the gains of regional peers as the PBoC continued to boost its daily liquidity efforts, and with the gains led by mining and tech, while Chinese airlines soared and oil majors suffered from the drop in oil prices.

Top Asian News

• Fitch affirms China at "A"; outlook stable.
• China issued guidelines on classifying and grading financial information data.
• China is setting up for a commercial launch of a cross-border digital currency platform that would be backed by the central banks of China, Hong Kong, Thailand, the UAE and Saudi Arabia to reduce reliance on the dollar and to draw Beijing closer to its Belt and Road trading partners, according to FT.
• China set out a plan to scale up new-energy heavy-duty trucks and targets 40% market penetration and a fleet of more than 1.6mln vehicles by 2030.

European bourses (STOXX 600 +0.6%) are rallying after the US and Iran announced a 60-day peace framework, with the STOXX 600 now reaching a new ATH. Details are yet to be confirmed, but it suggests Iran will reopen the Strait of Hormuz while the US will lift the naval blockade, waive sanctions on Iranian oil and partially release Iran's frozen assets. If there is no breakdown of the deal, the MoU is to be officially signed on Friday in Geneva. Sectors are broadly higher. Cyclicals that have suffered from the closure of Hormuz are the clear outperformers (Autos +3.3%, Construction +2.7%, Travel & Leisure +2.4%). Energy (-3.1%) is the clear underperformer, while Utilities (-1.0%) and Telecoms (-1.1%) also show modest losses.

Top European News

• UK PM Starmer is set to backtrack on electric vehicle targets by reducing the all-electric cap from 80% to 50% by the end of the decade amid fears of job losses, according to FT.
• UK PM Starmer confirmed that the Government is to ban social media for all under 16s.

FX

• G10s mostly firmer against the Buck as energy returns to March levels on the US and Iran’s interim agreement. Antipodeans and CHF lead, while USD/JPY briefly ventured below 160.
• DXY -0.3%, is pressured as the risk environment is bolstered by the US-Iran interim deal (see commodities for more details). Fed tightening bets have eased overnight with markets assigning a c. 60% probability of a 25bps hike by year-end. Domestic newsflow light ahead of Warsh’s first FOMC meeting as Chair on Wednesday. DXY marked a session trough just below its 21DMA of 99.41.
• EUR is firmer against both the Sterling and Buck as it reacts to the softer energy complex. Some ECB speakers this morning, none of which did much to spur a reaction in the currency, as price action remains dependent on geopolitical developments. A number of speakers are due to provide remarks throughout the week, which could provide hints as to whether further tightening is warranted, but with constructive updates this weekend, the chances are slimmer.
• GBP firms, but to a lesser extent than EUR (EUR/GBP +0.2%) with the Makerfield by-election potentially deciding the next UK Prime Minister, and the BoE meeting on Thursday, likely to see the MPC opt to stand pat on rates in a expected 7-2 vote split. On the former, Burnham was busy on the wires over the weekend. He said he would not touch the state pension triple lock, and there were also further reports suggesting Home Secretary Mahmood was an option for Chancellor. GBP/USD +0.2% with 1.34 vulnerable to the downside. EUR/GBP looks to test 0.8650, where the rally stalled overnight. Upside risks to the cross should UK Political uncertainty continue, and an unconvincing BoE potentially highlight vulnerable EUR-UK differentials.
• CHF is the best performer after the nation voted to reject a proposal to cap its population at 10mln, avoiding issues with the EU (USD/CHF -0.4%). NOK is the worst G10 performer with the popular Middle East conflict trade NOK/SEK continuing to unwind (NOK/SEK -0.9%).

Fixed Income

• Global fixed benchmarks rise as the US and Iran agree to a framework peace deal, which has led to continued and sustained pressure in the crude complex. In brief, the US and Iran have reached a framework peace agreement; the US will lift its naval blockade, and Iran will reopen the Strait of Hormuz. However, a full text has not yet been released, which has stemmed some uncertainty on a few key points.
• USTs (+9 ticks) are currently off the overnight highs and continued the downward bias throughout the European morning (109-24+ to 111-00 range). Action which has been facilitated by the easing of inflationary implications associated with lower energy prices. From a yield perspective, there is a clear bull steepening. The US 2yr (4.03%) is eyeing the round 4.00% mark but still remains well above the levels seen pre-Iran war (3.47%). The path yields take will be subject to: a) developments heading into Friday’s signing, b) the signing itself, c) the time it takes for stockpiles to be rebuilt. Finally, on Fed pricing, markets now assign a 65% chance of a hike by Dec’26 (vs the prev. fully priced by year-end).
• Bunds (+46 ticks) and Gilts (+46 ticks) both gain, thanks to the positive geopolitical updates; the latter outperforming a touch given the UK’s high reliance on external energy. This also comes ahead of the BoE policy decision this Thursday, where rates are expected to remain on hold – the latest geopolitical updates will only further cement that decision.

Commodities

• Over the weekend,the US and Iran announced a 60-day peace framework, marking a significant de-escalation of the conflict. Iran will reopen the Strait of Hormuz in exchange for the US lifting its naval blockade, waiving sanctions on Iranian oil and releasing part of Iran's frozen assets. Regarding uranium, Iran would be allowed to dilute enriched uranium on site, while the 60-day window allows for further negotiations on its enriched uranium programme. The deal also covers Lebanon, with Pakistan's PM posting on X that the pact called for the immediate and permanent termination of military operations on all fronts, including Lebanon. However, comments by Israeli Defence Minister Katz suggest Israel will not back out of Lebanon, stating that Israel opposes the withdrawal of the IDF from Lebanon. Additional comments by Israeli Finance Minister stating the US-Iran agreement is harmful to Israel and that they will have to continue their campaign in creative ways.
• Crude futures gapped lower at the open and have held onto earlier losses. WTI Jul'26 briefly dipped below USD 80/bbl (USD 79.70-82.42/bbl) while Brent Aug'26 trades at the lower end of its USD 82.67-85.93/bbl range.
• Spot gold has benefited from the weekend newsflow, as markets pare back rate hike bets. Markets now assign a c. 60% probability of a hike by December. Spot gold regained the USD 4300/oz handle, currently trading at the upper end of its USD 4281-4346/oz range.
• 3M LME Copper gains amid the constructive risk tone, gapping higher and oscillating in a USD 13.76k-13.87k/t range.

Trade/Tariffs

• US President Trump threatened 100% tariffs on French wine over digital tax and demands France axes 3% tech levy or face a trade war, according to NYP.
• Indian Trade Official said USTR Greer to visit India on June 23-24th with the focus on final revisions to interim agreement.

Central Bank

• ECB's Kazimir said it is increasingly evident that monetary policy has more work to do and is not comfortable with outlook for core inflation above 2% even with more tightening. Even with the US-Iran peace framework, damage in the Middle East cannot be undone overnight and is leaning towards frontloading work that needs to be done, but need to be agile and responsive to incoming information.
• ECB's Nagel said the ECB is keeping all options open for July meeting and that the ECB is no longer dealing with short-term supply shock. Can't exclude second-round effects from energy. ECB policy settings are still broadly neutral but there is no relief in sight for the foreseeable future.
• ECB's Kazaks said the ECB can move gradually but is ready to act if needed. To add, Kazaks still see upside risks to inflation.

Ukraine updates

• Ukraine targeted a Russian chemical plant and fuel depot in strikes. It was separately reported that three people were killed and another three were injured in Russia's city of Tula following a drone attack, while a Ukrainian attack damaged two bridges in the Russian-held Kherson region.
• Ukraine’s Zaporizhzhia nuclear plant was reconnected to the grid after repairs were carried out under an IAEA-brokered local ceasefire.
• UK forces boarded a sanctioned tanker in the Channel on Sunday in a raid on Russia’s shadow fleet.

US Event Calendar

• 8:30 am: Jun Empire Manufacturing, est. 13.5, prior 19.6
• 9:15 am: May Industrial Production MoM, est. 0.3%, prior 0.7%
• 9:15 am: May Capacity Utilization, est. 76.2%, prior 76.1%

DB's Jim Reid concludes the overnight wrap

I hope you all had a good weekend. It was the school fete, and my kids ran what they felt was a very successful homemade lemonade and orangeade stand. The kids and my wife were saying it made so much money they could set up their own business. Without wanting to be a party pooper I had to remind them that I saw the costs on my bank statement. A few hundred oranges and lemons, lots of soda water, other ingredients, an industrial vat to mix it, a few huge glass bottles with taps to dispense them and then all the cups. Oh, and the gazebo, and no ground rent so far. So if anyone wants to invest in this bunch of well-meaning dreamers, please feel free to take me out of my stake. Although if the IPO market stays this buoyant maybe I'll just hold on and float it in a few weeks.

The fizz in staying in markets this morning as after 107 days and a seemingly endless number of false dawns, we finally have a deal between the US and Iran to end the war and open the Strait of Hormuz. It was announced at around 10:30pm UK last night and the MoU will be signed in Switzerland on Friday. According to statements carried by Iranian state-affiliated media, the agreement includes a phased lifting of US sanctions on Iranian oil exports, the unfreezing of roughly $12bn in overseas assets, and a commitment to reopen the Strait of Hormuz within 30 days (after mine clearing) alongside the removal of the US naval blockade. The deal also sets out a 60-day negotiation window on a broader accord, including constraints around Iran’s nuclear programme, where Tehran is expected to commit to maintaining its current status and not pursuing nuclear weapons. The US hasn’t been so explicit and whilst the deal is very good news for markets it looks like tough conversations will have occur in the 60-day window to ensure the peace is sustainable. As an example, the Senate needs to approve any extensive sanction relief for Iran. 

For now the can kicking exercise has been very well received by markets even after a strong US close on Friday where hopes were raised of a weekend signing. Brent is -4.3% lower at $83.31/bbl and S&P 500 (+1.20%), NASDAQ 100 (+1.90%) and Stoxx (+1.60%) futures are higher as I type and in Asia the KOSPI (+5.56%) is again leading the charge with the Nikkei (+5.24%) not far behind and at fresh record highs. The CSI and Shanghai Composite are +1.47% and +0.94% respectively, while the Hang Seng is +0.45%. The S&P/ASX 200 (+1.34%) is also trading significantly higher ahead of tomorrow’s RBA meeting. 10-year USTs are trading -5.3bps lower at 4.43% as I write with 2-yr yields -5.7bps lower.

The other major story is the decision late on Friday from the US government to issue an export control directive forcing Anthropic to restrict access to its most advanced models, Fable 5 and Mythos 5, released to great global acclaim last week, to US nationals only, citing undefined national security concerns. In practice, because it is operationally difficult to separate users by nationality, Anthropic opted to suspend access to these models entirely on a global basis. The move marks one of the first instances of the US applying export controls not just to AI hardware (e.g. semiconductors) but directly to frontier models themselves, reflecting a growing view of AI as a strategic, dual use asset.
Clearly the export control may only be temporary as the cited jailbreak risk is examined and rectified quickly. This is probably the most likely outcome. However, if it longer-term, and more strategic from the US government, it's not great news for US tech firms or for those assuming breakneck speed of AI adoption. US tech firms require a global marketplace to justify their huge investments so far. In addition, global enterprise would want to ensure any models they purchase are usable, especially for business-critical operations. You can't rely on something that could be switched off. So all eyes on what Anthropic and the US government agree as the next step.

Outside of Iran and AI, central banks will dominate the global agenda in the coming week, with key policy decisions across the Fed, BoJ and BoE alongside important inflation and activity data.

The primary focus will be the United States and Wednesday’s FOMC meeting, which marks the first under new Fed Chair Kevin Warsh. The leadership transition introduces a higher-than-usual degree of uncertainty around both policy signalling and communication style. While an immediate policy shift is unlikely, the meeting will be closely scrutinised for early indications of how Warsh intends to reshape the Fed’s framework, particularly given his stated ambition for a broader “regime change”.

In terms of the statement, a modest upgrade to the labour market assessment appears likely, reflecting steady job growth and a broadly stable unemployment rate. More importantly, the guidance language could shift meaningfully. Warsh has been openly critical of heavy reliance on forward guidance, so the Committee may lean towards a more neutral, data-dependent formulation. This would effectively remove any residual easing bias and reopen the possibility of further tightening should inflation dynamics warrant it. Any such adjustment would be interpreted as a recalibration towards optionality rather than a firm directional signal.

Beyond the headline statement, attention will turn to the Summary of Economic Projections. The distribution of rate expectations may shift upwards, with 4 or 5 policymakers signalling the potential for hikes into 2026 and beyond. This would likely nudge the median path higher across the projection horizon and reinforce the idea that the Fed is not yet comfortable declaring victory on inflation. Our economists note that Warsh may not submit dots which would reflect his views on forward guidance. Revisions to inflation forecasts, particularly for the outer years, will also be closely examined for evidence of more persistent price pressures. At the moment our economists expect core PCE for 2027 to be raised by a tenth to 2.3%.

However, the most revealing element of the meeting may be Warsh’s press conference. His prior remarks suggest he will likely place less emphasis on near-term data fluctuations and explicit forward guidance, instead favouring a broader narrative around structural forces such as productivity and technological change. While this could temper the immediate hawkish interpretation, markets may test whether this framing is sufficient to justify patience in the face of still-elevated inflation. Just as important will be any early signals on communication reform—whether through changes to the dot plot, adjustments to the SEP, or a broader rethink of how the Fed conveys uncertainty. So a fascinating meeting to look forward to.

In terms of US data, the focus will be on May retail sales due Wednesday, and our US economists expect a +0.5% MoM rise in the headline (same as in April). Industrial production is due today (DB forecast is a +0.1% MoM increase, down from +0.7% in April) and there will be several housing indicators out this week as well. US markets will be on holiday for the Juneteenth National Independence Day on Friday.
Outside the US, central bank activity remains heavy. In Europe, decisions are due from the Riksbank and a cluster of Thursday meetings including the Bank of England, Swiss National Bank and Norges Bank. In the UK, the BoE is expected to keep rates unchanged, with attention focused on the vote split (our team expect 7-2) and any evolution in guidance against a backdrop of still-sticky inflation (see preview here). Incoming UK data, particularly CPI (Wednesday), labour market indicators (Thursday) and retail sales (Friday), will provide important context for the policy outlook. Meanwhile, euro area attention will also be shaped by ongoing commentary from ECB officials and sentiment indicators such as the German ZEW survey (tomorrow).

Political developments will also be in focus, with the G7 leaders meeting early in the week (today through Wednesday) followed by the European Council summit (Thursday-Friday).

In Asia, the Bank of Japan meeting (tomorrow) stands out, with expectations for a further rate increase as part of its gradual normalisation process. Japanese inflation data later in the week (Friday) will help gauge whether underlying price momentum continues to justify policy tightening. In China, their monthly activity data tomorrow covering industrial production and retail sales will provide an updated read on the growth trajectory, with expectations for a modest improvement after recent softness.

Elsewhere in the region, the Reserve Bank of Australia is likely to remain on hold (tomorrow), while New Zealand’s GDP release (Wednesday) will offer further insight into the strength of its economic recovery.

Recapping last week now, and markets saw big moves on the back of geopolitical developments, as tensions first mounted in the Middle East, before easing markedly into the weekend. Overall, hopes for an imminent deal meant that oil prices came down, with Brent crude closing beneath $90/bbl for the first time since early March, down -6.19% to close at $87.33bbl (-3.37% Friday). Indeed, that was clear across the futures curve, with the 6-month Brent future also down -3.46% to $81.69/bbl, its lowest level since April.

With oil prices at their lowest in months, that helped to ease fears about a wider stagflationary shock. Moreover, investors also became dovish on the future rates outlook. For instance, futures were fully pricing in a Fed rate hike by December at the start of the week, but that probability was down to 82% by the weekend. So that meant the 10yr Treasury yield fell -5.0bps (+1.9bps Friday) to 4.48%. And over in Europe, the 10yr bund yield fell -3.7bps to 2.99%, with markets looking through the ECB’s 25bp hike given it was already priced in beforehand.  

For equities this provided a strong backdrop, as positive geopolitical headlines and easing inflation fears supported optimism on the near-term outlook. So the S&P 500 managed to pare back some of the previous week’s decline, with a weekly gain of +0.65% (+0.50% Friday). And over in Europe, there were even stronger gains for the STOX 600, which rose +1.69% (+1.88% Friday). In the tech space, there was another big gain for the Philly semiconductor index, which rose +9.42% last week, but that followed a -10.26% decline on the previous Friday, so the index was still beneath its levels prior to that slump. Meanwhile, rotation away from mega caps saw the Mag-7 fall by -2.54%.

Some other assets also saw less favorable moves. In Germany, the DAX fell -0.50%, making it a relative underperformer in Europe, while Japan’s Nikkei fell -0.85%. Otherwise, HY credit spreads widened on both sides of the Atlantic, with US HY up +1bps and Euro HY up +18bps, though IG spreads were more sanguine, with US IG down -1bps and Euro IG flat. And gold fell -2.52% to its lowest weekly close of 2026 at $4,219/oz.

Tyler Durden Mon, 06/15/2026 - 08:20

Fox Buys Roku In $22 Billion Deal To Build "Next-Gen Media" Giant

Fox agreed to acquire Roku for $160 per share in a cash-and-stock deal, valuing Roku at around $22 billion. The deal marks a major push by Fox into connected TV, streaming advertising, and direct-to-consumer distribution.

On Friday, Roku shares jumped 20% to a four-year high on Bloomberg news that the company was in talks to be acquired by an unnamed media company. That created a wave of suspense over the weekend among Wall Street research desks, which published several notes speculating on potential acquirers.

JPM

Needham

Citizens

Under the terms of the deal, Roku shareholders will receive $96 in cash and .9693 shares of Fox Class A common stock for each Roku share. Existing Fox shareholders are expected to own about 73% of the combined company, with Roku shareholders owning roughly 27%.

"The transaction combines FOX's leading sports, news and entertainment content and the Tubi service, with Roku's leading connected TV platform, The Roku Channel, first-party data and direct relationship with more than 100 million global streaming households. Together, FOX and Roku will create a scaled next-generation media and technology company positioned at the intersection of two of the most important forces reshaping video consumption: the enduring primacy of live sports and news, and the continued rise of streaming," Fox wrote in a press release, in what only appears to be the emergency of a media empire.

Lachlan K. Murdoch, executive chair and CEO of Fox, said, "In 2020, we acquired Tubi and under our stewardship it has become one of the most successful businesses in streaming. Today, we take the next step: bringing together the most valuable live content portfolio in video consumption with the preeminent streaming platform through which America watches it."

"This combination will transform the scope of our company into high-growth verticals and yield a step change in our overall growth profile," Murdoch said, adding, "And we are executing this acquisition from a position of financial strength – maintaining our investment grade balance sheet while providing our shareholders with an uninterrupted return of capital program in the form of share buybacks and dividends. Roku pioneered streaming TV and scaled it into a leading CTV platform. Together, we intend to lead its next chapter."

Fox detailed key benefits of the merger:

• Increases scale and reach: The transaction pairs the leader in live news and sports with the leading connected TV platform. Roku's platform has leading scale in the attractive, high growth connected TV vertical, reaching over 100 million global streaming households, including more than half of all U.S. broadband households. FOX is #1 in live news and sports, with a portfolio including the NFL, MLB, NASCAR, Big Ten, FIFA World Cup, FOX News and FOX Business that represents some of the most valuable appointment-viewing content in television. Together, FOX and Roku will encompass premium live content, broad distribution and significant audience reach across linear and streaming.

• Expands position in high growth verticals: The acquisition of Roku positions FOX across the full video ecosystem and provides a wider entry into the high growth segment of connected TV, particularly advertising and streaming subscriptions.

• Creates a more powerful streaming platform: Brings together FOX's premium content and advertising capabilities with Roku's consumer interface, home screen, platform technology and direct viewer relationships to enhance content discovery, deepen engagement and create a more compelling streaming experience for consumers and content partners.

• Enhances long-term growth profile: Advances FOX's business mix toward high growth streaming and connected TV verticals and maintains a balanced mix across advertising and distribution businesses, while strengthening the combined company's long-term growth and financial profile and maintaining FOX's disciplined capital allocation approach.

In markets, Roku added about 2% in premarket trading, building on Friday's 20% gain. Fox shares were down about 10%.

Last Friday, Needham analyst Laura Martin raised her Roku price target to $170 from $140, "based on Roku's value to a larger company."

Tyler Durden Mon, 06/15/2026 - 08:15

The Bond Market Already Looked Through The Inflation Headlines

Authored by Lance Roberts via RealInvestmentAdvice.com,

💰 May Inflation of 4.2%: Media Narrative Misses Reality

The May inflation print landed on Wednesday, and the doom crowd pounced. Headline CPI reaccelerated to 4.2% year over year, the hottest reading since April 2023, and the “inflation is back” choir was in full voice within the hour. I want to push back on that, because two weeks ago I made exactly this argument in “Why The Doom Crowd Is Watching The Wrong Indicator,” and this May inflation print is the clearest confirmation yet. The scary headline is not a broad inflation breakout. It’s an oil bill.

Strip the May inflation print open, and the story falls apart on the first page. Energy prices jumped 3.9% in May alone and are up 23.5% over the past year, and that single category accounted for more than 60% of the entire monthly increase in the all-items index. The high correlation between oil prices and the May inflation print is unsurprising, given the pass-through of rising energy prices into the underlying products and services it touches.

This is why the “Core CPI” is more important to watch, particularly from a market and monetary policy view. The core reading removes food and energy precisely because they’re volatile and supply-driven, rose just 0.2% on the month. That was below the 0.3% economists expected. Core goods prices actually fell 0.1%, which tells you the tariff pass-through everyone feared all spring simply isn’t showing up in the data.

This is why paying attention to real wages is the most important point.

A 4.2% headline that is three-fifths gasoline is not the same animal as a 4.2% headline driven by wages, rents, and services broadening out across the economy. That is what real wages are telling us. The first is a tax on consumers that demand will eventually crush. The second is the kind of self-reinforcing spiral the Fed actually fears.

This report is emphatically the first kind.

Core Inflation Is Doing Exactly What the Fed Wants

Here’s the part of the May inflation print that got buried under the headline. At a 0.2% monthly pace, core inflation is running right around the Fed’s target on an annualized basis, and the year-over-year core rate of 2.9% is the number that actually drives policy. The chart below shows the sources of May’s headline increase. When 60% of a monthly print is one volatile category that swings on a Persian Gulf headline, you don’t have an inflation problem. You have an oil problem wearing an inflation costume.

This matters because the Fed under Kevin Warsh has to decide what to react to. A hard-money chair has every temperamental reason to lean against a 4-handle headline. But the mandate is built on core and on expectations, and both are behaving. The Fed will look THROUGH an oil spike it cannot control, because hiking into an energy shock would only deepen the demand destruction that’s already pulling the headline back down on its own.

Don’t believe me? The bond market is already telling you the same thing.

The Bond Market Already Looked Through the Headline

The smartest, deepest pool of capital on the planet already told you the same thing about the May inflation print. If the bond market believed 4.2% was a real, sticky, broadening inflation problem, yields would have ripped higher and the curve would have repriced for tighter policy. The opposite happened.

The 10-year yield eased to 4.45% from 4.55% across the week, the 2-year dropped a full 12 basis points to 4.05%, and the rate market kept pricing a near-certain hold at Wednesday’s meeting. That’s not the signature of a bond market bracing for an inflation regime change. That’s a bond market that read the same energy carve-out I did and concluded the headline will fade as oil rolls over on Strait of Hormuz peace headlines.

Think about how unusual that is. The hottest inflation print in three years lands, and the asset most sensitive to inflation rallies. Bonds and stocks don’t always agree, but when they diverge this sharply on an inflation read, the bond market is usually pricing the more durable signal, because its participants get paid to be right about exactly this variable. When that happens, I’ll take the bond market’s verdict almost every time.

“Inflation isn’t a single number, it’s a regime. And regimes are set by the variables that lead, like wages, not the variables that follow, like a gasoline-driven CPI headline.”

🔑 Key Catalysts Next Week

Everything funnels into Wednesday. The Federal Reserve concludes a two-day meeting on June 17 with a rate decision, an updated dot plot, and a press conference, and this one carries an extra layer of intrigue because it’s the first meeting chaired by Kevin Warsh. Markets are pricing a near-certain hold, with the CME FedWatch tool putting the odds of no change above 96% and, tellingly, now leaning toward a hike rather than a cut as the next move. So the rate itself is a non-event.

The real signal sits in the Summary of Economic Projections, where a single shifted dot or a hawkish tweak to the inflation forecast would tell us how the new chair plans to treat an energy-driven price spike. The question is not what the Fed does on Wednesday. It’s how a hard-money chair frames a 4.2% May inflation print he can’t control.

The same morning brings May retail sales, which matter more than usual. If the consumer is rolling over while inflation runs hot, the stagflation whispers get louder, and that combination is the one scenario that genuinely complicates the look-through case I make below. If spending holds, it hands the hawks more cover to keep policy tight.

Monday’s industrial production and Tuesday’s housing starts fill in the growth picture, and the Bank of Japan delivers its own rate decision Tuesday, a reminder that the yen carry trade is never far from the conversation whenever global liquidity gets repriced. Thursday is light on data but heavy on read-through, with Accenture reporting. Watch its commentary on AI consulting demand closely, because it’s one of the cleanest tells on whether corporate AI spending is still accelerating or starting to cool.

Notably, this is also a holiday-shortened trading week with the markets closed on Friday, June 19, for Juneteenth. With all the weight stacked on Wednesday, the risk of holding stocks over a long weekend rises.

What Should Investors Do Now

None of this means you ignore inflation or abandon discipline. It means you refuse to let one oil-soaked May inflation print stampede you out of a market that just held its 50-DMA and burned off an overbought condition. The risk into a Warsh-led Fed is real, and the right response is to manage exposure, not to panic-sell into a 0.65% up week.

Here is how we’re thinking about positioning.

While the doom crowd is frantically telling you that the May inflation print of 4.2% means the Fed is trapped and the bull market is over, look at the receipts. Core is at target, the bond market shrugged, oil is already falling on peace headlines, and the tariff pass-through everyone feared never showed up in core goods.

The honest risk isn’t runaway inflation. It’s a hawkish Fed reacting to the wrong number on Wednesday, and that’s a risk you manage with stops and cash, not by dumping good companies into a recovering tape. I’ve been through enough of these headline scares to know that the investors who get hurt are rarely the ones who stayed disciplined. They’re the ones who let a single scary number make the decision for them.

Watch 7,248, watch the dots, and watch the wages.

Tyler Durden Mon, 06/15/2026 - 08:05

Anthropic Races To Defuse Trump's Fable 5 U.S. Export Curbs While Jefferies Sees New Headwind For China AI

Anthropic's Fable/Mythos 5 ranks number one in the world for model intelligence, widening the US-China gap. The gap may widen further because of "anti-distillation" features, and the models are now under US export control, which has shuttered access to the advanced models.

LLM model matrix pic.twitter.com/d64OIhoYDH

— zerohedge (@zerohedge) June 11, 2026

Late Friday, the US government banned foreign governments, companies, and individuals from using Anthropic's Fable 5 and Mythos 5 models after researchers at Amazon demonstrated to the Trump administration that some safeguards on Fable could be circumvented.

People familiar with what's happening inside the Trump administration told The Wall Street Journal that Anthropic sent top officials to the White House and held calls to resolve software vulnerabilities, including the alleged ability to 'jailbreak' the model.

DARIO REFUSED TO FIX JAILBREAK W/ ANTHROPIC MYTHOS MODEL: SACKS https://t.co/VArxay0cVA

— zerohedge (@zerohedge) June 13, 2026

Anthropic's top security staff, including Nicholas Carlini, Logan Graham, and Dave Orr, were sent to Washington on Saturday to speak with senior US officials, including Commerce Secretary Howard Lutnick, National Cyber Director Sean Cairncross, and Treasury Secretary Scott Bessent. The move by the frontier AI lab aims to resolve vulnerabilities exposed by Amazon researchers.

More color from WSJ:

People close to the company and the administration said both parties are interested in resolving the issue and restoring access to the cutting-edge models, but it isn't clear what a solution would entail.

Anthropic technical experts and government security researchers coming together was seen by some administration officials as a key step toward a compromise.

The weekend discussions continue months of tension between the administration and one of America's leading AI labs over how new, cutting-edge technologies are used and regulated. The Trump administration has recently taken more steps to control the fast-evolving industry.

The imminent “Anthropic - White House” ceasefire is the new imminent “Iran-US” ceasefire https://t.co/byCO9mLo2h

— zerohedge (@zerohedge) June 14, 2026

A Sunday letter by cybersecurity experts urged the Trump administration to lift the restrictions on the models, warning that such a move could hurt U.S. cyber defenses, create market uncertainty, and weaken America's AI leadership.

However, Jefferies analysts said quite the opposite, noting that "anti-distillation" features and US export control, "which could make it harder for open-source (Chinese) models to catch up."

"US models are improving at a faster pace likely due to compute advantage, but anti- distillation and US export control are new negatives for China AI," the analysts said. 

More from Jefferies:

Open-source models (mostly Chinese) may find it harder to improve given new anti- distillation features and US export control. More importantly, Anthropic introduced anti- distillation features on Fable 5. If Fable 5 detects suspicious distillation activities, it would downgrade the model to Opus 4.8 and notify users. While this seems to be targeting Chinese AI development, we believe this would set back open source progress if all closed-source model developers follow suit. Moreover, the US has imposed emergency export control on Fable 5, barring foreigners from using them (including foreign employees of US companies), given loopholes in the cybersecurity safeguards. However, since Anthropic has no tools to limit the use to US nationals only (ie, ID checks?), it has suspended both Fable 5 and Mythos 5 globally until it could come up with a way to enforce that export control.

Polymarket

Did the Trump administration overreact to Amazon's findings about Fable 5? Or is it really about slowing China's open source model progress?

Tyler Durden Mon, 06/15/2026 - 07:45

Anduril CEO Urges U.S. Arms Export Reset To Become World's Gun Store

Anduril founder Palmer Luckey has called for critical resets across defense procurement, manufacturing, innovation, and national identity.

Luckey's defense startup, valued at over $60 billion, is one of the key forces reshaping America's military power through low-cost, automated systems that can be manufactured and reproduced at scale, from autonomous weapons and AI fighter jets to drones for the modern battlefield.

America's hollowed-out industrial base is being rebuilt through President Trump's reshoring push and other domestic policies designed to expand the war economy. This leads us to the latest comments from Anduril CEO Brian Schimpf.

Schimpf spoke with the Financial Times about the urgent need for a "reset" of America's strict arms-export regime to make it easier for allied nations to produce and deploy U.S. weapons.

"There is an 'export control reset that needs to happen,' with other countries contributing to the total supply," Schimpf said in the interview.

Schimpf said Cold War-era International Traffic in Arms Regulations (ITAR) are slowing the West's ability to mass-produce low-cost weapons at scale. Simply put, ITAR determines who can receive U.S. weapons, military software, technical data, and know-how, and under what conditions.

He noted that the "ability to produce is probably the biggest deterrent gap that we have as a Western alliance, and having nations contribute to that—not just buying, but actually participating in production—is actually a very good thing."

Schimpf added that producing U.S.-origin weapons abroad could benefit allies, as they could tailor them to their own needs.

When pushed, we'll do what it takes to win. pic.twitter.com/YryoFrLZIk

— Anduril Industries (@anduriltech) June 12, 2026

The problem that Anduril appears to be identifying is that maintaining America's military edge over the decades relied on tightly controlling the flow of weapons and technical data abroad. But in the era of low-cost drones, ground-bots, and AI kill chains, those same systems have become a bottleneck, limiting allied co-production, slowing deployment, and weakening the West's ability to ramp up production and ship at wartime scale.

Schimpf told FT that there have been emerging signals of openness for an "export-control reset" in the Trump administration. President Trump announced plans in February to reset the arms trade regime.

This comes as Luckey recently told CBS News' Bari Weiss that America must become "the world's gun store."

It also comes as Anduril has begun initial production activity in Ohio, starting with its Fury high-speed combat drone at the Arsenal-1 site near Columbus, and is considering a European Arsenal-2 facility as it expands overseas.

The wars stretching across Eurasia and the Middle East, from Ukraine and Russia to the U.S. and Iran, have drawn down critical Western weapons stockpiles to dangerously low levels. There is now an urgent need to rebuild stockpiles of critical weapons while adding new stockpiles of emerging systems, such as one-way attack drones, loitering munitions, and other next-generation weapons

Tyler Durden Mon, 06/15/2026 - 06:55

Trump Says Hormuz To Reopen Friday After Signing Of "Great Peace Deal" With Iran Summary

• Trump Says Hormuz Chokepoint Reopens Friday

• Pakistan PM Confirms Peace Deal, with a signing event in Switzerland next Friday

• Trump Confirms US-Iran Peace Deal "Now Complete" and says "Let The Oil Flow" 

• Iran's president issues pro-MoU signing statement as Tehran is boasting of great and solid results for its side. There are reports this includes a significant release of billions in its frozen assets in the West.

• White House still suggesting an electronic MoU deal to be signed with Iran on Sunday, which leaves nuclear negotiations to further date, only with commitment that Iran not pursue a nuke.

• Trump: new strikes on Beirut's southern suburbs "should not have happened" and given it was on "a special day when we are so close to a Peace Deal with Iran.

• "A draft of the US-Iran memorandum of understanding included diluting highly enriched uranium within Iran & the release of $25b of Iran’s frozen assets" (Reuters).

• Iranian statements characteristically cautious: Fars News Agency reported earlier that Iran has not made a final call on a potential MOU with the U.S. Iranian authorities are still reviewing the political, legal, and technical details.

Polymarket

//--> //--> US x Iran permanent peace deal by June 30, 2026?
Yes 39% · No 62%
View full market & trade on Polymarket

*  *  *

Trump Says Hormuz Chokepoint Reopens On Friday

"This Great Deal will bring Peace and Security to the whole Region. Many presidents have tried to make Peace with Iran, and all have failed before me. The Leaders of the Region have, for the first time, found a President who can help them achieve real Peace. With the opening of the Strait upon the signing of the Deal on Friday, for purposes of mine removal, oil will flow on both ends again for the Region, and the World!" Trump wrote on Truth Social. 

The timing of the peace deal is critical. The world was approaching a dangerous energy cliff, with strategic petroleum reserves being quickly drained to offset lost Gulf production and stabilize physical markets. Still, even with a deal in place, energy flows through the strategic maritime chokepoint will not normalize overnight.

It will likely take several months, if not quarters, to clear the backlog, restore shipping confidence, de-risk insurance markets, and bring regional production and export flows back to pre-crisis levels. As for damaged energy assets such as those in Qatar, it'll take years to get production back to pre-war levels.

Polymarket odds of a permanent US-Iran deal are surging. 

Deal Confirmed By Trump, Pakistan PM, Just Ahead Of NY Futures Opening

Just 30 minutes before futures open in New York, President Trump announced on Truth Social that a "Deal" with Iran is now complete.

"Congratulations to all! I hereby fully authorize the toll-free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow!" Trump said.

Pakistan's prime minister, Shehbaz Sharif, also confirmed: "that the Peace Deal between the United States of America and the Islamic Republic of Iran has been REACHED."

Sharif said, "The official signing ceremony will be on Friday, 19 June in Switzerland."

Following intensive talks, we are pleased to announce that the Peace Deal between the United States of America and Islamic Republic of Iran has been REACHED. Both sides have declared the immediate and permanent termination of military operations on all fronts, including in…

— Shehbaz Sharif (@CMShehbaz) June 14, 2026

Israeli journalist and Iran affairs correspondent/analyst for Israel's Channel 14 reports that hardliners in Iran, including IRGC forces, will not derail the peace deal.

BREAKING | IRGC Commander Ahmad Vahidi Will Not Block the Deal

• According to my sources, IRGC Commander Ahmad Vahidi has agreed not to stand in the way of a deal, despite not supporting it

• The IRGC sees strategic value in a ceasefire: sanctions relief, increased oil and… pic.twitter.com/kqM7jj0CMd

— דרור בלאזאדה | Dror Balazada (@DBalazada) June 14, 2026

With futures in New York set to open momentarily, and with Brent and WTI contracts likely to panic-dump while S&P 500 and Nasdaq futures catch a bid, crypto is soaring to the moon.

S&P500 Futs up about 1%

WTI Futs tumbling to $81 a barrel level.

Earlier, Jefferies analyst David Zervos noted, "I remain hopeful on the Iran front and, when we see resolution, that oil will drop below $60 and we go back to pricing in cuts, with Fed balance sheet reduction in the spotlight. I am confident we will be bouncing around with 8 handles on SPOOs, and eying 9s in '27/'28."

Iran's President Pezeshkian Cites Solid Results For Iran As MoU Signing Could Be Just Hours Away: Rare Optimism From Both Sides

It seems like a deal will really happen this time... finally... given Tehran is boasting of great and solid results for its side. There are reports this includes a significant release of billions in its frozen assets in the West.

via Fars News:

• Recent diplomatic efforts have yielded positive results.
• Recent developments have shown that no country cares more about Iran's interests than ourselves
• Even if my personal opinion differs, I consider myself obliged to follow the final decision of the system
• Resolution of the Supreme National Security Council is the basis of action, and whatever is approved and deemed appropriate by the Supreme Leader will be mandatory for all of us.
• I regret the neighboring countries being exposed to the consequences of military actions. Our operation targeted the US bases on the soil of these countries.
• Issues and misunderstandings with Gulf countries are being resolved
• Ties with Gulf region countries are on path to improvement.
• Talks do not mean abandoning principles. Iran won't bow to any kind of bullying or illegal pressure.
• Media reports on war, negotiations do not necessarily reflect Supreme National Security Council views.

Fox News, citing President Trump, says deal could be signed in Next 2-3 Hours:

Spoke with President Trump. He says the deal with Iran is expected to be signed in the next 2-3 hours.

President Trump said he asked Israeli Prime Minister Netanyahu “what the fu*k are you doing?” on a call after the Israeli strikes against Beirut. He told Netanyahu not to…

— Trey Yingst (@TreyYingst) June 14, 2026 Israeli Strike on Beirut Once Again Threatens MoU Signing: Trump says "Let's Not Blow It"

President Trump on Truth Social has sought to brush back the Israeli Sunday strikes on Beirut's southern suburbs, saying this morning's attack "should not have happened" and given it was on "a special day when we are so close to a Peace Deal with Iran.

He emphasized, "We are very close to a Deal that will bring peace to the region, including to Lebanon, and all sides should stand down." He warned not just Israel against more attacks, but said Hezbollah must refrain, after the Iran-aligned Shia group sent more projectiles on northern Israel. "This could be the beginning of a long and beautiful peace" he said, and added "let's not blow it."

Lebanon's civil defense agency has indicated that the new attacks on Beirut's southern suburbs killed at least three people. "The bodies of three martyrs were recovered from under the rubble and six wounded," the agency announced in a statement.

Iran Weighs In on Anticipated MoU Signing Details, Potential Unresolved Issues

Bloomberg and Reuters are reporting Sunday some fresh details on Iran's version of what the MoU to be signed - which President Trump says will happen today (albeit remotely) will inlcude.

"A draft of the US-Iran memorandum of understanding included diluting highly enriched uranium within Iran and the release of $25b of Iran’s frozen assets, Reuters reports citing a senior Iran official it didn’t identify," writes Bloomberg in the latest. This includes:

• Final deal to be discussed in the 60 days following agreement by the two sides
• Also includes Iran immediately reopening Hormuz Strait to all commercial vessels and US lifting its naval blockade
• Tehran in draft agrees ⁠that will neither produce nor acquire nuclear weapons
• To maintain the nuclear status quo until final deal is ⁠reached, including by not enriching uranium and not expanding nuclear facilities

One potential major complication to the two sides actually signing is what's happening in the Beirut suburbs, which the Israeli Air Force has just struck for the first time in about a week:

Israel has struck a building in Beirut’s southern suburbs in response to Hezbollah attacks on northern Israel, marking the first such strike since last Sunday. pic.twitter.com/VYv3mGFrF9

— Faytuks Network (@FaytuksNetwork) June 14, 2026

Provocative Israeli military actions previously effectively torpedoed prior Washington-Tehran attempts to get back to the negotiating table. Will the same hold-up happen again?

Pro-Israel supporters and lobbyists in the US have been raging against what they see as a 'failure' of a deal, and 'capitulation' to Iran on kicking the can on the nuclear issue... not least among them is on display in the following:

Has to be about releasing the $20-24 billion in frozen assets to Iran, the most immediately damaging concession for Trump.
I took a plunge into Mark Levin's show--the squealing about Trump selling out Israel for Iran is rather enjoyable ngl.https://t.co/hf27AJiGuL

— Mark Ames (@MarkAmesExiled) June 13, 2026

The usual caveats which proved all prior 'deal imminent' headlines to be premature and wishful thinking still apply. Some latest from Iranian state media according to Al Jazeera:

Iran’s Fars news agency, citing a source close to the negotiating team, is reporting that Iranian officials were discussing the ceasefire points with the Qatari mediators in Tehran.

The report added that the deal is yet to be finalised and “no agreement will definitely be signed at the time Trump announced”.

The comments were made to the agency prior to Israel’s deadly attacks on Lebanon’s southern suburbs today.

Sunday Iran Deal (or rather: MoU Remote Signing) Expected Sunday, per Trump

President Trump said Saturday that an interim U.S.-Iran deal to reopen the Strait of Hormuz and wind down the four-month conflict could be signed as soon as Sunday. However, Tehran has pushed back on that timeline, signaling that no final decision has been made while Iranian officials continue to review the terms of a potential memorandum of understanding.

"The Deal is scheduled to get signed tomorrow, and immediately after it is signed, the Hormuz Strait is OPEN TO ALL," Trump said in a Truth Social post on Saturday, while claiming that Iran "no longer wants a Nuclear weapon."

The president continued, "At the appropriate time, when all is calm, we will go in and get the Nuclear Dust, buried deep under the powerful sunken granite mountains, thanks to our beautiful B-2 Bombers and their brilliant pilots, and downblend and destroy it, whether in Iran, or the United States."

Pakistan and Qatar are mediating, with technical talks expected to follow any signing and last up to 60 days. The MOU is structured as a step-by-step framework, meaning the Hormuz maritime chokepoint will reopen first, followed by economic rewards for Iran as conditions are met.

Pakistan's Sharif Says Deal Imminent; Iran's Statements More Cautious

Pakistan, which has served as one of the mediators, is preparing to sign the peace deal electronically, followed by technical-level talks next week, according to Pakistani Prime Minister Shehbaz Sharif. He said those talks would last two months and focus on Iran's nuclear program.

Meanwhile, the Iranian media outlet Fars News Agency reported earlier that Iran has not made a final call on a potential MOU with the U.S. Iranian authorities are still reviewing the political, legal, and technical details, with no final decision announced as of Sunday morning.

The urgency behind securing an MOU to reopen the Hormuz chokepoint is clear: the world is drifting dangerously close toward an energy cliff. Strategic petroleum reserves are being drawn down rapidly around the world to offset the loss of Gulf production, while China's weakening fuel demand is helping to offset some of the broader supply shock.

Related:

• What If The Strait Of Hormuz Never Fully Reopens

Iranian Foreign Minister Abbas Araghchi made clear Friday that Iran understands that terms related to its nuclear program will be finalized within 60 days of the initial agreement being signed. So in essence, this means Iran could get its wish of pushing nuclear negotiations back, only after the hot conflict has clearly ended. Iran has long sought to separate the issues of a final end to the war from consideration of its nuclear program.

Energy markets priced in de-escalation last week, with Brent crude futures sliding as much as  5.1% Friday and European gas dropped as much as 8.4% after Trump canceled planned new strikes on Iran.

IG's weekend markets are pricing in a 50 bps decline in Brent crude when futures open on Sunday evening.

But throughput traffic through the Hormuz chokepoint remains far below pre-war levels, and a vessel was struck off Oman on Saturday. Normalization could take weeks, if not many months.

Bloomberg noted, "Roughly 140 ships passed through the narrow chokepoint each day before the conflict erupted."

Here are the latest overnight headlines (courtesy of Bloomberg):

US-Iran Deal Progress

• Trump said on Saturday that a deal with Iran is scheduled to be signed on Sunday, claiming the Hormuz Strait will open immediately after signing and that Iran no longer wants nuclear weapons

• Iran contradicted Trump's timeline, saying it is still reviewing the text and hasn't announced a final decision, with authorities conducting a detailed assessment of political, legal, and technical dimensions

• Pakistan said on Saturday that an interim deal could be finalized within 24 hours and is preparing for electronic signing immediately after, followed by technical level talks next week

• A senior US official said on Friday there was an 80% or 85% chance an agreement gets signed soon, though some Iranian hardliners still want to kill any breakthrough

Draft Deal Terms

• According to a senior Iran official, the draft memorandum includes diluting highly enriched uranium within Iran and the release of $25 billion of Iran's frozen assets

• The draft includes Iran immediately reopening the Hormuz Strait to all commercial vessels and the US lifting its naval blockade

• Tehran agrees in the draft that it will neither produce nor acquire nuclear weapons

• The draft includes a US oil sanctions waiver for Iran

• The final deal will be discussed in the 60 days following agreement by the two sides

• A central element is a step-by-step approach with the Strait of Hormuz reopened followed by Tehran getting economic rewards each time it meets US demands

Regional Tensions

• The Israeli military announced on Sunday it launched strikes on Beirut targeting Hezbollah infrastructure, with Netanyahu's office saying the strikes were in response to Hezbollah attacks in northern Israel

• When Israel last struck the Beirut suburbs a week ago, Iran responded with attacks

• US Central Command said on Saturday it shot down Iranian drones near the Strait of Hormuz

• Secretary of State Marco Rubio spoke with India's External Affairs Minister on Saturday after US strikes left three Indian mariners dead, stressing that all commercial vessels should immediately comply with orders from US forces

Nuclear Program Developments

• According to five sources familiar with US intelligence, Iran has sealed off its cache of near-bomb grade uranium and placed explosive mines near entrances to the site in recent weeks, making attempts to remove the uranium far riskier

Financial Arrangements

• The UAE has agreed to unlock billions of dollars for Iran, with four sources telling Reuters the total was $10 billion, more than $3 billion of which had already been delivered, though two other sources put the total at $20 billion

• The UAE denied reports on the Iran funds transfer, specifically denying allegations concerning $3 billion

Diplomatic Activity

• Trump will meet with leaders of France, Qatar, the UAE, Egypt and India at the G7 summit in France, underscoring the outsized role the war in Iran continues to play

Khamenei Burial Plans

• Ali Khamenei, Iran's former supreme leader killed in US-Israeli air strikes on February 28, is set to be buried at the Imam Reza shrine in Mashhad on July 9, with public funeral ceremonies in Tehran and Qom in preceding days

Saturday's Iran Wrap

• President Trump Says Iran Peace Deal To Be Signed Sunday, Will Open Strait To All

Polymarket

//--> //--> Strait of Hormuz traffic returns to normal by July 15?
Yes 43% · No 57%
View full market & trade on Polymarket //--> //--> US x Iran permanent peace deal by August 31, 2026?
Yes 69% · No 32%
View full market & trade on Polymarket

"Any deal that kicks the can down the road on the most critical issues and is conditions-based would put the US and Iran exactly where they've been: a fragile ceasefire in name only that is routinely tested and prone to violence," said Becca Wasser, defense lead for Bloomberg Economics.

One can only hope that an MOU, and eventually a credible path toward a real peace deal, is something Tehran actually follows. What was initially sold as a quick war by the Trump administration has now dragged on into its fourth month. Early in the conflict, the administration's view was that the Hormuz chokepoint would not be sealed shut, yet that is exactly what happened. Since then, the conflict has turned into a giant game of Shahed drone whack-a-mole with the Iranians. The Trump team needs this conflict resolved quickly, not only to prevent another wave of inflationary pressure in energy markets and avert the world from sliding into an energy cliff, but also to repair the political optics ahead of the midterms.

Tyler Durden Mon, 06/15/2026 - 06:40

Watch: Korean Humanoid Robot Performs Viral K-POP Dance, Learns By Watching Videos

Authored by Jijo Malayil via Interesting Engineering,

While China dominates humanoid robotics headlines, a Korean firm showcased a humanoid learning complex motions through an open-source AI framework.

AI Sapiens enables a complete pipeline for imitation learning, covering data collection, training, and inference. ROBOTIS/YouTube

In a recent demonstration, ROBOTIS' AI Sapiens learned the famous CORTIS REDRED Challenge motion using only smartphone video, eliminating the need for professional motion-capture systems.

The process combined video-based motion capture, motion retargeting, simulation-based reinforcement learning, and Sim2Real transfer.

According to the firm, the demonstration highlights how open-source tools can simplify humanoid robot training, enabling users to generate, learn, and execute full-body motions more easily.

Humanoid Learns Motion

ROBOTIS has demonstrated the capabilities of its AI Sapiens humanoid robot, an open-source platform for physical AI powered by DYNAMIXEL-Q actuators. The project is designed to make humanoid robot motion learning more accessible by using widely available hardware and open-source software tools.

In the demonstration, AI Sapiens learns and performs a complex full-body motion known as the CORTIS REDRED Challenge. Instead of relying on expensive professional motion-capture systems, the robot learns the movement from video recorded using a standard smartphone camera. This significantly reduces the cost and complexity of collecting training data for humanoid robots.

The motion-learning process begins with video-based motion capture. Human movements recorded on a smartphone are converted into digital motion data that can be processed by software. The captured motions are then passed through a motion retargeting stage, where the human movements are adapted to match the physical structure and joint limitations of the humanoid robot.

After retargeting, the robot is trained in a simulation environment using reinforcement learning. During this stage, the AI repeatedly practices the motion in a virtual world, allowing it to improve balance, coordination, and movement accuracy without risking damage to physical hardware. Simulation training also enables rapid testing and optimization before deploying the motion to the real robot.

Once training is complete, the learned behavior is transferred from simulation to the physical AI Sapiens robot through a Sim2Real pipeline. This process helps ensure that motions developed in the virtual environment can be executed successfully in the real world, despite differences between the simulation and the physical hardware.

Accessible AI Robotics

ROBOTIS plans to release the motion generation and learning pipeline as open-source software, giving researchers, developers, educators, and hobbyists access to the tools used in the demonstration. The goal is to lower barriers to humanoid robotics development and enable a wider community to experiment with motion learning and physical AI systems.

According to ROBOTIS, AI Sapiens is a fully open-source humanoid robot platform designed for physical AI research and development. Standing 1.3 meters tall and weighing 34 kilograms, the robot features 23 degrees of freedom across its body, enabling a wide range of human-like movements.

The platform is powered by 23 next-generation DYNAMIXEL-Q quasi-direct-drive (QDD) actuators, including 14 QM-060 units and 9 QM-080 units. These actuators combine low gear reduction ratios, high-torque motors, and integrated control electronics to deliver high backdrivability, low impedance, and precise torque control, making them suitable for dynamic and compliant humanoid motion.

AI Sapiens is powered by an NVIDIA Jetson Orin NX 16GB computer, delivering up to 100 TOPS of AI performance for advanced robotics tasks. It supports Wi-Fi 5, Bluetooth 5.0, dual Ethernet ports, USB connectivity, and 24V/12V power outputs for connecting additional hardware.

The robot is powered by a 46.8V, 9000mAh battery. It is supported by a fully open-source ecosystem that includes hardware bills of materials, CAD files, source code, simulation assets, and development tutorials, enabling researchers and developers to customize and expand the platform.

Tyler Durden Mon, 06/15/2026 - 06:30

Exposed: UK Govt Has A 'Thought Police' Unit To Control Mass Migration Narratives

Authored by Steve Watson via Modernity,

A secretive Home Office propaganda outfit founded by a former MI6 officer is actively working to control narratives around incidents involving migrants and rising tensions, a bombshell report reveals.

The Research, Information and Communications Unit, or RICU, has been exposed advising police on how to portray protesters and intervening in the aftermath of brutal attacks by migrants to prevent statements that might inflame public anger over mass immigration failures.

This comes as fresh confirmation of suspicions raised after the attack on vulnerable special needs man Stephen Ogilvie in Belfast. Sources now confirm the unit's role in managing family liaison and messaging in such cases. The pattern fits a broader shift where government "nudge" operations once focused on enforcing COVID compliance have pivoted to shielding open borders policies from scrutiny - and are now being hardened into formal crisis powers.

What?! This is mental.

It has been claimed that a secretive UK govt unit intervenes to write statements by the families of victims of potentially racially linked incidents to stop them from inflaming tensions further with their remarks.

This is allegedly a secret unit called... pic.twitter.com/Po6AggeFkF

- Alex Armstrong (@Alexarmstrong) June 14, 2026

The Daily Mail reports that RICU was set up in 2007 by the late Charles Farr, a former MI6 officer, under the Prevent counter-terrorism banner. It operates from Home Office headquarters and draws on tactics from the old Information Research Department, the post-war propaganda unit used to counter communist influence.

Its methods include planting media stories, deploying undercover operatives, and shaping online conversations in targeted communities.

Recent operations show the unit extending far beyond its original remit. During unrest in Belfast following the stabbing attack on Stephen Ogilvie by Sudanese asylum seeker Hadi Alodid, RICU worked with the Police Service of Northern Ireland's C3 intelligence unit.

So we finally have confirmation, in the Daily Mail, that the British government has its own equivalent of the US Community Relations Service, to intimidate the families of victims of anti-white crimes, force them to make public statements and stage propaganda events like the... pic.twitter.com/lpnUB6koBn

- RAW EGG NATIONALIST (@Babygravy9) June 14, 2026

A source described the effort: "They are working with the Police Service of Northern Ireland's C3 intelligence unit to identify those posting the online 'calls to protest' in Belfast and other areas, as well as giving strategic messages to the police to ensure that the protesters were portrayed as unsympathetic thugs, rather than activists, and effecting behavioural change."

The same source noted RICU's involvement with family statements in volatile incidents. "RICU made sure that the liaison team dealing with the family were well briefed." Another observation: "You can see their fingerprints all over the statements released by the families of victims in these volatile situations - they usually have a similar tone."

This aligns with what was noted right after the Belfast incident. The family statement released in the wake of the attack on Stephen Ogilvie came across as oddly generic and scripted, using placeholder phrasing such as "our loved one" and quickly pivoting from shock to calls for calm plus emphasis on migrants' contributions rather than raw, unfiltered grief or pointed questions about what had happened. It did not read like the spontaneous words of devastated relatives.

No shit Sherlock.

As if a family in deep shock would write this shite pic.twitter.com/g9ZsApUJn8

- Katie Hopkins (@KTHopkins) June 14, 2026

The Mail also notes that RICU was involved with the aftermath of the murder of Henry Nowak by Vickrum Digwa, again providing strategic input to police handling the family.

The interventions align with long-standing criticisms that RICU applies uneven standards. Sir William Shawcross, in his 2023 review of Prevent, observed: "The bar for what RICU includes on Islamism looks to be relatively high, whereas the bar for what is included on the extreme Right-wing is comparably low."

The unit has flagged mainstream cultural consumption - watching Michael Portillo's programmes, reading Shakespeare, Chaucer or Milton, or books documenting grooming gang scandals - as potential indicators of far-Right susceptibility. It even linked Sir Jacob Rees-Mogg to sympathetic audiences.

Professor Anthony Glees described the outfit's position: "The unit that produced this report is called RICU. It's based in the Home Office but it's in that kind of shadowy area between what the Home Office does and what the security service MI5 ought to be doing."

Do you want evidence of the work of the RICU 'nudge unit'?

Here it is...

Organised protests to quell the legitimate fury after Southport with the MSM all under orders to devote their front pages to the psy-op the next day

All told to refer to concerned parents as 'far right... pic.twitter.com/i8QArS5UXr

- Leftwaffen-Watch ?? (@LeftwaffenWatch) June 14, 2026

A Home Office spokesman offered the standard line: "RICU provides analysis on extremist use of propaganda and exploitation of the internet to inform the UK's counter terrorism system. We cannot comment on its operations."

The unit has pushed for expanded recording of non-crime hate incidents, measures later scrapped after public backlash over their chilling effect on ordinary speech. It has also claimed that discussion of grooming gangs in Pakistani communities is exploited by the far-Right to stir hatred.

This is not isolated activity. Government narrative management operations have multiplied. A 2025 examination detailed how teams such as the National Security and Online Information Team monitor "concerning narratives" on social media and flag material to platforms for removal, particularly content critical of migration policy during periods of unrest.

An elite police unit tracks anti-migrant posts. Officials stated they make "no apologies for flagging to platforms content which is contrary to their own terms of service and which can result in violent disorder on our streets."

The same infrastructure that once deployed propagandistic fear tactics to drive mass compliance during the COVID period has been repurposed. What began as emergency messaging around a virus has evolved into tools for managing public reaction to the consequences of sustained high immigration and associated crime.

We have also seen the Prevent apparatus targeted firmly at British people, and even children, who have expressed concern about mass migration.

This apparatus is also now being formalised and expanded under the banner of "crisis response." In the wake of the Belfast unrest sparked by the attack on Stephen Ogilvie, ministers have moved to give Ofcom sweeping new authority under the Online Safety Act to pressure platforms into rapid removal of content labelled "false information" or inciting disorder during declared crises.

Technology Secretary Liz Kendall announced the government will "lay in Parliament an update to the Online Safety Act requiring services to take quicker action to remove illegal content circulating during times of crisis."

Ofcom has already issued open letters to platforms citing spikes in content tied to the Northern Ireland events and demanding enhanced, crisis-specific moderation measures - without requiring fresh parliamentary approval.

The definition of "crisis" is deliberately broad, drawing on the Civil Contingencies Act 2004 and covering threats to welfare, security or public order. This builds directly on the informal narrative-shaping RICU has conducted for years, now also augmented by a new £115 million PoliceAI centre equipped with live facial recognition, predictive analytics and automated real-time content flagging.

'People are concerned the government will stretch the definition of a crisis and remove content showing what is happening on our streets.' @CarverEmily grills Culture Secretary Lisa Nandy MP on Labour's plan to curb social media in 'times of crisis' after disorder in Belfast. pic.twitter.com/Eh0NHW65n5

- GB News (@GBNEWS) June 14, 2026

Former Prime Minister Liz Truss directly addressed the underlying dynamic. She stated that mass migration "is being weaponised to undermine Western civilisation." Truss continued: "They want to undermine the family. They want to undermine the nation state. And people in Britain are saying 'we've had enough of this.'"

She added that institutions have been corrupted by a DEI mentality focused on group outcomes rather than equal treatment under law, with the response being suppression of discussion and attacks on those highlighting the role of mass migration.

The through-line is clear. Legitimate public concern over policy outcomes - crime rates, community cohesion, strained services - is reframed as dangerous extremism requiring state-managed behavioural change. Protesters become "thugs." Family grief is shaped into generic calls for calm that emphasise migrant contributions.

Online speech is monitored and throttled. Cultural touchstones are recast as radicalisation risks when they appear on the "wrong" side of the narrative. Now "crisis" declarations provide the trigger to accelerate these controls with regulator muscle and AI tools.

This apparatus operates with minimal transparency and little accountability to elected representatives or the public whose taxes fund it. Critics inside Whitehall have described it as out of control. Its expansion from countering Al Qaeda propaganda into domestic speech management on immigration - and now into codified crisis powers - represents a fundamental shift toward treating British citizens' unfiltered reactions as the primary threat.

Britain faces real pressures from decades of rapid demographic change and enforcement failures. Honest examination of those pressures does not equate to hatred. Suppressing that examination through coordinated narrative control only deepens distrust and guarantees that underlying problems fester.

Citizens retain the right to discuss the impacts of policy without state operatives scripting responses or directing police to rebrand dissent.

The revelations about RICU and the accelerating "Ministry of Truth" machinery confirm what many already sensed: the tools built for one set of emergencies have been turned inward to protect another set of political choices.

Restoring open debate and accountability requires dismantling these layers of managed perception and returning to straightforward governance that prioritises the security and cohesion of the existing population.

Tyler Durden Mon, 06/15/2026 - 05:00

EU Auto Giants Call For 'Made In Europe' Incentives Amid Rising Chinese Competition

Europe's largest automakers are stepping up efforts to secure stronger support for domestic vehicle manufacturing as competition from Chinese electric vehicle producers intensifies. Renault, Volkswagen, and Stellantis have jointly urged EU policymakers to introduce rules that more heavily reward cars developed and produced within Europe, according to FT.

The companies are advocating for a straightforward local content requirement under which vehicles sold as European would need to source the majority of their components from within the EU and closely associated European countries. They argue that industrial policy should encourage not only final assembly in Europe but also engineering, research, and product development activities.

FT writes that the proposal forms part of a broader European debate over how to rebuild industrial competitiveness while accelerating the transition to electric vehicles. The automakers are also seeking wider incentives for EVs manufactured in Europe, arguing that higher labor and energy costs put local producers at a disadvantage compared with rivals operating in lower cost regions.

Not all manufacturers support the plan. Several international carmakers have warned that a narrow definition of European content could exclude important suppliers and technology partners in countries such as Japan, the United Kingdom, and Turkey. Critics argue that stricter sourcing requirements could raise compliance costs and ultimately increase vehicle prices for consumers.

Battery production remains one of the most challenging aspects of the strategy. European manufacturers continue to rely heavily on supply chains dominated by Chinese companies, and industry leaders have called for a more gradual timeline to localize battery manufacturing capacity within Europe.

The debate reflects a broader shift in the global automotive industry over the past two years. Chinese carmakers have rapidly expanded their presence in international markets, supported by strong domestic scale, advanced battery supply chains, and increasingly competitive technology. European manufacturers, meanwhile, have faced slowing EV demand, rising production costs, and growing pressure to protect domestic industry. As Chinese brands continue to gain market share, policymakers in Brussels are increasingly balancing free trade principles against concerns over industrial competitiveness, strategic supply chains, and long term economic security.

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

Starmer To Ban Under-16s From 10 Social Media Apps, Including X, But Not Bluesky

Authored by Toby Young via DailySceptic.org,

Sir Keir Starmer is set to announce sweeping reforms tomorrow banning under-16s from 10 major social media platforms, including X, but not the Left-wing platform Bluesky.

In addition, he will introduce daily curfews for 16 and 17 year-olds, going further than Australia’s restrictions. The Times has the story:

Teenagers will be banned from certain social media platforms and have their daily usage curbed under sweeping reforms to be announced by Sir Keir Starmer on Sunday.

The ban will go further than the one imposed by Australia in December by targeting technology deemed harmful to children, including chatbots and certain features on gaming apps.

Under-16s in Australia have been banned from using ten platforms: TikTok, Instagram, Threads, Facebook, X, YouTube, Snapchat, Reddit, Twitch and Kick. It is understood that the UK will follow suit by raising the minimum age on social media to 16, from the average of 13, for the same ten sites.

Curfews for older teenagers will be introduced. Daily social media use will be restricted for 16 and 17 year-olds in a move designed to curb unhealthy late-night scrolling habits.

A Government source said: “Keir has been clear we need a game-changer to keep our children — and future generations — safe online.”

The reforms, which come two weeks after a public consultation on potential restrictions closed, will stop short of banning the messaging platform WhatsApp and apps considered to have educational value.

However, the government will go further than Australia and introduce restrictions on romantic or sexual chatbots after several legal cases involving the AI agents mimicking relationships and encouraging children to take their own lives.

Kanishka Narayan, the online safety minister, has said the government — which will also give 16 and 17 year-olds the right to vote — could block conversations between children and strangers on gaming platforms.

The Children’s Wellbeing and Schools Act, which was passed in April, gave ministers the ability to introduce measures to restrict harmful features on online services without needing to pass new laws.

It is not clear when the ban will come into force or how effectively the government will be able to enforce it.

The 10 social media apps under-16s will be banned from are:

• X
• TikTok
• YouTube
• Snapchat
• Instagram
• Reddit
• Facebook
• Twitch
• Kick
• Threads

How could the Government have digested the 116,000 responses to its consultation about restricting social media access for children just two weeks after the consultation closed?

Hard not to agree with Ian Russell, the father of Molly, 14, who took her own life after viewing harmful content online, who has accused Starmer of “playing politics” by rushing out the ban.

Worth reading in full.

Tyler Durden Mon, 06/15/2026 - 03:30

'Manufactured Story': Hegseth Goes Off In CBS Interview On Crisis Of US Arms Stockpiles

Pentagon chief Pete Hegseth joined CBS's Margaret Brennan on Sunday for an interview which quickly degenerated into a tense, finger-pointing segment over billions poured into the military-industrial complex, as well as foreign coffers, amid multiple global hotspots and a couple major war fronts - most notably Ukraine and the Middle East.

Brennan pressed Hegseth on the hollowed-out state of American arms stockpiles, invoking a recent plea from Ukraine for localized weapon production. "Let me ask you before you go about what is going on with US munitions and stockpiles here," Brennan posed. "Ukraine's President Zelensky was on this program a few weeks ago. He made a plea not just for more interceptors, but for the ability to produce them, for friendly governments to be able to produce patriots. Some Republican lawmakers support this idea. Do you?"

Hegseth pivoted immediately to 'everything is fine' talking points regarding American stockpiles... "Nobody makes better and more munitions than the United States of America, and we are open to co-production wherever we can,” Hegseth said. "And because of this administration, we're supercharging our arsenal of freedom, building more, building faster, opening up the Pentagon, ripping through the Pentagon bureaucracy to force industry to move faster. So our stockpiles are strong, and it will only get stronger in the future." Watch the tense and very testy exchange unfold below:

Hegseth: Nobody makes better or more munitions than the US.

Brennan: But there is a crisis with those stockpiles right now.

Hegseth: That is a manufactured story that the media wants to peddle.

Brennan: You testified under oath that it would take years to rebuild those… pic.twitter.com/i6FpUesKys

— Acyn (@Acyn) June 14, 2026

Brennan, however, wasn't buying it. She pointed out the glaring disconnect between Hegseth's rosy public relations script and the grim reality of what's being reported among private defense contractors.

"There is a crisis with those stockpiles right now in private industry," Brennan said. Hegseth snapped, interjecting, "That is a manufactured story that the media wants to peddle!"

But the CBS host quickly reminded the US defense chief that his own prior under oath testimony contradicted this narrative. 

"You have testified to it in front of Congress," Brennan said. "Ultimately our stockpiles are great and they only get stronger because of the way this president has," Hegseth maintained. 

“You testified under oath that it would take years to rebuild those stockpiles,” Brennan emphasized.

"You don’t have to read back to me what I testified," Hegseth shot back. "I speculated some munitions take more time than others. We’ve got lots of them, we’re building more than ever before. The Biden administration gave away hundreds of billions to Ukraine. And so President Trump had to refill, and he has, and we have in real time."

When Brennan tried to pin him down on whether the Pentagon would actually grant Ukraine's Zelensky's wish for domestic Patriot missile production, she pressed...

“So the answer to Zelensky’s request is a no or a yes?” Brennan asked.

"Ultimately, we’ve worked with them, and Ukraine is buying munitions that Europe pays for," Hegseth responded. It’s great to see Europe finally step up and pay for those."

"OK, well, he was asking for the ability to produce, but I’ll leave it there," Brennan then concluded sarcastically.

Tyler Durden Mon, 06/15/2026 - 02:45

Major U-Turn: Swedish Parliament Abolishes Permanent Residence Visas For Migrants

Via Remix News,

The Swedish Parliament has officially passed a government bill to end permanent residence permits, which will offer a vastly stricter approach to the country’s immigration policy. Under the new legislation, the government “eliminates the possibility of granting permanent residence permits to asylum seekers” and other immigrant groups specified in the reform.

Set to take effect on July 12, the updated rules dictate that affected individuals will now only be eligible to receive temporary residence permits. However, those who currently hold valid permanent residence will keep their existing status and remain unaffected by the change.

While temporary permits have become standard practice in Sweden over recent years, this reform goes significantly further by preventing specific groups from converting those temporary stays into permanent ones. Through this measure, the Swedish Executive aims to tighten its oversight regarding the long-term status of foreigners within its borders.

This legislative shift takes place amid deep public and political concern over escalating violence tied to criminal networks and the cost of mass immigration. Recent data emerging from Scandinavia, specifically from the Danish Ministry of Finance and analyzed by the White Papers Policy Institute, showed that Scandinavian nations like Denmark and Sweden are spending billions on their migrant populations.

Austrian MEP Harald Vilimsky cites the data, which was complied by the White Papers Policy Institute:

“The financial consequences of mass immigration. The White Paper Policy Institute also refers to the costs for Somalis in this context and concludes that Sweden will spend approximately 117.3 billion euros on the 102,000 Somalis living in Sweden over the next 50 years,” the MEP wrote on X.

Security is also a top concern. For years, Sweden has grappled with rampant shootings, targeted gang retaliations, and turf wars driven by drug trafficking networks, many of them made up of individuals of immigrant origin. Of course, there is also the issue of gang rape, rape, and robberies, which are dominated by foreign offenders.

🇸🇪🔴"I still feel sick when I think about it."

A Swedish court is under fire after an African migrant raped 16-year-old Meya Åberg, with the court ruling the migrant could not be deported because the rape did not last long enough.

The victim is now speaking out.

"During the… pic.twitter.com/QR8XEc2WYD

— Remix News & Views (@RMXnews) October 23, 2025

In some cases, lives have even been lost as gang violence spiraled out of control in many major cities. According to official police data published in May, “23 people outside these gangs have died and another 30 have been injured in shootings” linked to organized crime over the last three years. Law enforcement officials emphasize that these bystanders were not the intended targets but were rather caught in the crossfire by stray bullets, misidentified by attackers, or targeted simply due to their personal associations with gang members.

This newly approved immigration law aligns with a broader, multi-pronged crackdown targeting individuals connected to organized crime. Notably, the Swedish Migration Agency recently revoked the permanent residence permits of 11 individuals who maintained “strong connections with criminal networks and long stays outside the country.”

According to state authorities, these individuals were living abroad in nations such as “Iraq, Lebanon, Türkiye, United Arab Emirates, and Morocco.” Stripped of their permanent Swedish residency, they have lost access to the national welfare system and now face severe restrictions regarding international travel within the Schengen zone and their ability to conduct business.

Despite these measures, there are still many anti-immigration critics of the current conservative coalition government. They argue it has done little to truly stem the tide of mass immigration and reverse the radical open borders policies that dominated Swedish society for many years.

Read more here...

Tyler Durden Mon, 06/15/2026 - 02:00

Why Does America Have A 'Diversity Visa'?

Authored by White Papers Policy Institute and James Fulford via American Greatness,

The Diversity Lottery means you can receive immigrants from almost any of these countries on the watch list for human trafficking for the sole reason that “diversity is our greatest strength.”

Lucky you!

The Immigration Act of 1965 abolished the National Origins quotas of the 1924 Act, which had favored European immigrants. As a result, America has had a flood of non-European immigrants . . . and Europeans were, in effect, discriminated against for Visas.

In 1990, the late Teddy Kennedy instituted the “Diversity Visa Lottery” with the specific intention of allowing more Irish immigrants to the U.S.

Since then, it’s been a source of many overly diverse immigrants, some of whom were terrorists or mass murderers. Recently, the Trump administration paused it after a diverse guy from Portugal, Cláudio Manuel Neves Valente, killed two students and wounded nine other students at Brown University.

This is not the first time something like this has happened:

The Brown University shooter, Claudio Manuel Neves Valente entered the United States through the diversity lottery immigrant visa program (DV1) in 2017 and was granted a green card. This heinous individual should never have been allowed in our country.

In 2017, President Trump…

— Special Envoy Kristi Noem (@EnvoyNoem) December 19, 2025

As Kristi Noem writes above:

In 2017, President Trump fought to end this program, following the devastating NYC truck ramming by an ISIS terrorist, who entered under the DV1 program, and murdered eight people.

That was Uzbek bike path attacker Sayfullo Habibullaevic Saipov, below:

An NBC report from October 31, 2017 said:

The 29-year-old man detained after a flatbed truck drove down a popular lower Manhattan bike path, killing at least 8 people and injuring more than a dozen more, has been identified as an Uzbek national living in New Jersey.

In a report like this, the words “Uzbek National” are, in effect, a euphemism for immigrant.

After it transpired that Saipov was an Uzbek immigrant here on the Diversity Visa, The New York Times found an Uzbek Rhodes Scholar (now at Stanford) to do an op-ed saying, as Steve Sailer blogged at the time:  “An Uzbek Explains Why the Zeroth Amendment Obligates USA to Have the Diversity Visa Lottery: ‘No Person Has a Greater Claim to the American Dream Than Any Other.’”

The November 2, 2017 op-ed by Machmud Makhmudov was titled “We Need the Diversity Visa Lottery,”  and I suppose by “we” Mr. Makhmudov means the citizens of the United States.

By the way, the fact that Makhmudov, now an American citizen, got a Rhodes Scholarship, which Cecil Rhodes intended “to promote unity among English-speaking nations,” is just one more example of high-skilled immigration displacing a better class of American.

At the time of the Uzbek mass killing, Steve Sailer pointed out that he’d called out the Diversity Visa as long ago as 2002 in an article for UPI: “Analysis: The Curious Immigration Lottery” (UPI, July 29, 2002).

Oddly enough, the diversity lottery originated as a way to bring more whites to the United States. White ethnic politicians in America felt that their distant relatives in Europe had been squeezed out by chain migration from the Third World. So, natives of the 14 largest sources of legal immigrants—such as Mexico, India and China—are banned from participating. In particular, Sen. Edward Kennedy, D-Mass., saw a diversity lottery as a way to boost the number of legal Irish immigrants.

[Center for Immigrants Studies head Mark] Krikorian explained, “It was cooked up in the 1986 law to provide a way to amnesty Irish illegal aliens, since the main amnesty in that law primarily benefited Mexicans. In fact, to this day the lottery is often referred to by congressmen and their staff as ‘The Irish Program.’ But as the program evolved, and as there were fewer and fewer Irish illegals, its emphasis changed, and it’s now more accurately described as the Middle Eastern, East European and African program.”

Only 331 visas were awarded to Irish applicants this year.

But the reason Sailer was writing about this crazy visa in 2002 is because of another immigrant atrocity—when Hesham Mohamed Hedayet, below, shot up the El Al counter at Los Angeles International Airport.

The late Sam Francis wrote at the time:

If it’s proof of the sheer, homicidal insanity of American immigration policy you want, consider the case of the late Hesham Mohamed Hadayet, who achieved immortality of a kind when he shot and killed two people at Los Angeles International Airport last week on July 4. Mr. Hedayet may or may not have been a “terrorist,” actually connected to some formal terrorist organization. But he certainly was an immigrant.

Mr. Hedayet, himself shot down by an El Al security guard after he began blasting by-standers at the El Al ticketing area on Independence Day, was in this country legally, through the grace of a program known as 245(i), which is supposed to let in aliens who meet certain work qualifications and which both President Bush and a bipartisan coalition of the Open Borders lobby have been trying to expand. But the only way that Mr. Hedayet was even able to apply for legal status under 245(i) is that his wife won a lottery.

The lottery in question awards a green card, the Immigration and Naturalization Service’s ticket of legal immigration status, on the basis of “diversity” to some 55,000 foreigners every year. Once she got her green card and became legal, then her husband could apply for legal residency himself under 245(i) and stay here if he paid a fine of $1,000.

Welcome to America in the 21st century. [More]

It’s now America in the second quarter of the 21st century, and it’s finally time, with the Trump administration firmly in control, to just stop doing this. While Trump can simply refuse to issue refugee visas, as head of the Executive Branch, the Diversity Visa Lottery is a congressionally mandated program, and needs to be repealed by Congress. One avenue for this would be the Assimilation Act, of which we wrote last week, whose

structure and provisions align closely with core America First priorities: it ends exponential family-chain migration, eliminates the anti-assimilation diversity lottery, imposes a national-interest gate that includes cultural considerations, and raises concrete assimilation and self-sufficiency bars. The Assimilation Act represents the strongest congressional attempt in generations to halt mass immigration and to replace it with an immigration system focused upon quality and cultural compatibility.

There are other options for repeal. The America First Policy Institute wrote in February that:

After 30 years, the Diversity Visa Program does not advance America’s national interest, nor was it ever designed to do so. Indeed, sold under the guise of “diversity,” the program was unabashedly designed to import less-educated, low-skilled workers of Irish descent to appease the constituencies of Northeast politicians. The program has been riddled with fraud from its inception, making security checks and eligibility determinations unreliable. Additionally, lax rules that fail to address the dangers posed by state sponsors of terrorism and other terrorist groups present significant national security concerns.

The Trump administration has rightfully paused the Diversity Visa Program in the wake of the shooting at Brown University. America’s immigration programs should not be designed based on the ease with which foreign nationals can use (or abuse) them. Instead, such programs should place the interests of Americans first. It is time that Congress ends the DV Program and replaces it with a program that promotes merit-based immigration, where individuals are selected to come to the United States based on education, skill, self-sufficiency, and ability to contribute to our economy and society.

Thirty-plus years of “diversity” is enough.

Tyler Durden Sun, 06/14/2026 - 23:20

SpaceX IPO Lifts Off As Data Center Race Moves From Ashburn To Abilene To Space

SpaceX surged 19% on Friday in its Nasdaq debut following the world's largest IPO, closing near $161 after opening at $150 and valuing the company north of $2 trillion.

J.P. Morgan + SpaceX= Largest IPO

Congratulations to the @spaceX team on this milestone, we were proud to serve as a lead bookrunner on the transaction. pic.twitter.com/axxob266QP

— J.P. Morgan (@jpmorgan) June 12, 2026

Investor excitement over the potential commercialization of the Starship mega-rocket is certaintly a major driver, but also markets are beginning to view SpaceX as one of the most pivotal players in the emerging orbital data-center race, where launch dominance, Starlink infrastructure, satellite manufacturing scale, and plunging access-to-orbit costs could position Elon Musk's rocket company at the center of the next frontier in AI compute.

Nearly six months ago, we read the tea leaves and told readers how to position ahead of the SpaceX IPO and the coming space-and-data center buildout race in low Earth orbit. That thesis is moving from speculative to investable, after SpaceX's public-market debut yesterday and Starship commercialization story nears (read report).

Starship is a very big rocket https://t.co/0RyGe3CPzS

— Elon Musk (@elonmusk) June 13, 2026

A continuation of the space-based data center theme and how to profit comes from Barclays analyst Brendan Lynch in a new report titled "Ashburn, then Abilene, then space."

Lynch sees the story of space-based data centers gaining ground as territorial deployment woes materialize amid intensifying constraints on power, land, and grid.

This year alone, hyperscalers plan $800 billion in capex to build out data centers. There is growing resistance to the buildout, which has already derailed nearly half of the nation's planned 16-gigawatt capacity, with only 5 gigawatts currently under construction.

The good news for terrestrial-based data centers is that Lynch and his team don't see orbital data centers as a likely threat over the next decade, citing launch costs, radiation-resistant hardware needs, thermal-management limits, bandwidth constraints, and regulatory uncertainty.

The big attraction in space is unlimited solar power and no permitting. Orbital data centers could use near-continuous solar energy without relying on local utilities, grid interconnection waits, land availability, zoning approvals, or water-intensive cooling systems. Lynch noted that solar panels in orbit can generate up to eight times more power than terrestrial solar panels because of constant sunlight and the absence of atmospheric interference.

However, the analyst noted that the economics of orbital data centers remain a major roadblock. He estimated that orbital data centers cost roughly $51 billion per gigawatt to build and operate over five years, compared with about $16 billion per gigawatt for terrestrial data centers.

Lynch said, "However, there is still a long way to go before the economics and engineering make orbital data centers feasible at scale. Currently, orbital capacity is ~3x more expensive per MW than terrestrial, primarily due to high launch costs. Additionally, further progress must be made on engineering challenges, such as radiation-resistant hardware, thermal management, and connectivity."

Google estimates launch costs would need to fall below $200 per kilogram by 2035 for its orbital-compute vision to work, while SpaceX's Falcon Heavy is currently around $1,500 per kilogram.

Given these constraints, Lynch does not see orbital data centers as a "threat to our coverage with data center exposure (DLR, EQIX, IRM, AMT) in the next 10 years."

Now he added, "Beyond 10 years, it is harder to handicap the impact, but if space-based DCs come to fruition, it will likely be complementary to traditional deployments."

"That said, as technology advances and costs come down, we anticipate orbital capacity will gain momentum," the analyst noted.

The moment when launch costs plummet will likely hinge on the Starship commercialization timeline, which could see full-scale commercialization around 2027-28 and, really, at the end of the decade.

Starship is still transitioning from test vehicle to commercial platform. The first monetization wave is likely internal SpaceX demand, mainly Starlink deployment, larger satellites, orbital AI-compute demos, and NASA-linked lunar spacecraft.

Reuters reported SpaceX is aiming to begin orbital AI-computing demonstration missions by late 2027, a key validation point for the orbital data center.

Lynch added more color about the orbital data centers:

How data centers in space operate

Power

• Most orbital data center plans involve many satellites in low earth orbit operating collectively to form the "data center" in space, similar to how terrestrial data centers are comprised of many server racks. Clusters of satellites are often called constellations.
• Large solar panels supply near-continuous power. Satellites can be placed in sun-synchronous orbits (e.g., "terminator" orbits) to maximize solar exposure. Batteries are also required to store energy for eclipse periods when satellites pass into earth's shadow.

Communication network

• Optical laser links connect satellites so that they can share data. They are a high-speed method of transmitting data through laser beams. This is the same technology that some satellite operators use to provide broadband capacity on earth.
• Satellites transmit data to ground stations, which serve as the "middleman" between the data center and users. Constellations will likely require thousands of ground stations because low earth orbit satellites only pass in range of each ground station for a few minutes per orbit. Ground stations have large antennas to communicate with satellites either through radio waves or optical laser links. Radio waves provide reliable, regulated, lower-bandwidth connectivity, while optical links enable high-capacity, high-efficiency data transfer but require precise alignment and are sensitive to atmospheric conditions. Ground stations will also have fiber optic cables to connect with users.

Compute and cooling

• Advanced computing in space requires radiation-tolerant or radiation-hardened chips. Several semiconductor companies, including NVDA (covered by Tom O'Malley), are exploring specialized space-based computing infrastructure.
• Liquid cooling removes heat from chips, and then radiators dissipate heat as infrared radiation into deep space. Traditional air cooling methods don't work  due to the lack of atmosphere. Compute density per satellite is primarily limited by the rate at which heat can be radiated into space.

Operations Satellites

• Satellites are launched into space via rockets designed for heavy loads, similar to how traditional satellites are launched, but conceivably at much larger scale.
• Physical maintenance will likely be limited, but software updates are possible. Satellites will likely have redundant components and built-in work-arounds in case of hardware failure.
• Most business models assume no servicing or upgrades. Instead, satellites that reach the end of their operating life will be replaced by new ones carrying the latest technology. Most satellites are expected to have a 5-year useful life. At the end of life, satellites are typically de-orbited into the atmosphere to burn up.

Why data centers in space are attractive

Power

• Space provides less constrained access to solar power with fewer bottlenecks to scale vs. terrestrial power grids. Developers are not reliant on utility companies to provide power infrastructure.
• Power is generated and consumed in the same location, avoiding transmission losses and grid interconnection constraints.
• Solar panels in orbit can generate up to 8x higher output due to constant sun exposure and lack of atmospheric interference (molecules in the atmosphere absorb, scatter, and reflect sunlight, reducing the solar energy that reaches terrestrial solar panels). Solar power in space is also more stable than earth because there are no clouds or weather issues.

Land

• Suitable land sites with sufficient power are increasingly scarce in key data center markets globally. Space offers a solution to land constraints.
• Orbital data centers avoid many challenges faced by terrestrial development, including community opposition, environmental remedies, zoning restrictions, etc.

Resilience

• Infrastructure in space is less exposed to disruption from natural disasters, grid failures, and geopolitical events.
• Constellations of satellites offer high resiliency because workloads can be shifted between satellites if one goes down.

Design

• The modular design enables a more efficient capacity build out, where infrastructure is scaled via incremental satellite launches rather than large upfront development projects. Over time, this could reduce capital intensity and development risk.
• Water usage is one of the most common critiques of terrestrial data centers, particularly as AI increases compute density and cooling needs. Orbital data centers do not require evaporative water cooling

Challenges to near-term deployment

Physical

• Satellites will require very large solar panels to generate sufficient power for AI workloads. Satellites that support compute functions (instead of communications) might need to be ~10x larger to achieve attractive economies of scale.
• Space requires specialized IT hardware due to radiation which can corrupt data unpredictably and degrade equipment. Traditional space hardware uses radiation hardened chips that are more than 100x less powerful than chips in terrestrial data centers and very expensive.
• Thermal management limits compute density per satellite. There is no medium for heat transfer in space (i.e. no air), so satellites require a combination of liquid cooling to remove heat from the chips and radiators to remove heat from the satellite. Heat is emitted into deep space via infrared radiation. The radiators requires a lot of surface area in addition to the large solar panels because radiative heat transfer is relatively inefficient vs. air cooling.
• Orbital data centers face networking and bandwidth limitations. Inter-satellite connectivity (generally via optical laser links) requires complex, precise alignment. Space-to-earth communication via radio waves (most common currently) is heavily regulated and has relatively low bandwidth. The International Telecommunication Union (ITU) coordinates global spectrum allocation, and operators require authorization in each jurisdiction where they transmit signals to/from the ground. Optical laser links (emerging technology) are higher bandwidth and higher efficiency but face atmospheric interference due to clouds and weather and require precise alignment. Additionally, space-to-earth connectivity requires sufficient ground stations to receive/transmit data.
• Orbital systems have high failure rates vs. terrestrial infrastructure. When equipment fails in orbital data centers, it can't be replaced. As a result, orbital data centers must be highly redundant and have failover measures. If the satellite fails, it must be entirely replaced.
• Launch capacity is the primary constraint on scaling infrastructure due to the limited frequency of rockets launches. Size and weight are pertinent considerations for satellite design due to constraints of the rocket. Many orbital data center business plans are dependent on improvements to the launch process. In 2025, there were 330 launches globally. Each rocket can carry about 40-100 traditional satellites. However, orbital data centers could eventually exceed the size of the largest rockets that are available, highlighting the need for improved launch capabilities.

Regulatory

• A primary concern is overcrowding in earth's orbit, which increases the likelihood of collisions and long-term debris accumulation. The FCC requires that low earth orbit satellites are de-orbitted within five years of end-of-life, and companies must file orbital debris mitigation plans with regulators. There are currently ~16,000 satellites orbiting earth, but several companies have filed plans with the FCC to collectively increase this by 10x with build-outs in the late 2020s and 2030s.
• There will likely be future challenges due to regulatory and jurisdiction uncertainty given the lack of standards for orbital data centers. For example, spectrum allocation and licensing is currently handled by individual countries. Broader AI regulations and data sovereignty requirements will likely also be factors.

Economic

• Orbital data centers are estimated to cost up to ~$50m/MW, more than triple the cost of terrestrial data centers, at present.
• The biggest financial challenge is launch costs. Google estimates that launch costs would need to fall below $200/kg by 2035 for its vision to be economically viable. SpaceX's current launch vehicle, Falcon Heavy, is the cheapest available at $1,500/kg.
• In addition to the higher build cost, the useful life of orbital data centers is only ~5 years due to limited maintenance and upgrade capabilities and the harsh environment in space (e.g. radiation, extreme temperatures). This compares to decades of useful life for terrestrial data centers which can be maintained and upgraded more easily.'

And now to the part readers care about most: how to profit from the buildout.

Axiom Space (private, not covered)

• The company has been testing cloud computing capabilities on the International Space Station (ISS) since 2022 and launched its first two orbital data center nodes in January 2026. Its nodes are modular units located on the space station.
• Axiom is also building a commercial space station which it plans to launch ahead of the ISS's retirement in 2030.

Blue Origin (private, not covered)

• The company announced Project Sunrise with a target of deploying up to 51,600 satellites for AI workloads. It filed plans with the FCC in March 2026, but faces an objection from NASA regarding the proposed orbit altitude (which overlaps with critical human spaceflight paths) and risk of space debris.
• The company also has plans to launch a 5,000 satellite constellation for global high-speed communications infrastructure, called TerraWave. It aims to begin deploying TerraWave satellites in late 2027. TerraWave satellites are designed for networking while Project Sunrise satellites are designed to enable high-density compute.

Cowboy Space (private, not covered)

• The company filed plans with the FCC to deploy 20,000 orbital data center units in a constellation called Stampede in May 2026. Each unit would repurpose the the upper stage of the rocket as a high-density compute platform. Cowboy Space aims to launch its first rockets in 2028.
• The company is also working on a separate constellation that would send solar power back to earth.

Planet Labs (public, not covered)

• The company partnered with Google (covered by Ross Sandler) for project Suncatcher which has a demonstration mission planned for early 2027 to test Google's TPUs (specialized AI chips designed to accelerate machine learning and inferencing workloads) in space.
• Planet Labs already operates 600+ satellites that form an imaging constellation for geospatial intelligence.

SpaceX (public, not covered)

• The company filed plans with the FCC to launch a million data center satellites for ~100GW of compute capacity in January 2026.
• SpaceX currently operates ~10,00 Starlink satellites and controls ~65% of active satellites globally. Starlink satellites primarily enable communication vs. data center satellites which are designed for high-density compute.

Starcloud (private, not covered)

• The company deployed a ~1kW satellite with a single GPU in November 2025 as proof-of-concept. It plans to launch its next-gen satellite which is 10kW in 2027 and then launch a ~200kW satellite in 2028.
• Its ultimate goal is to deploy 88,000 satellites totaling ~20GW of compute primarily for inference workloads, reaching ~5GW by 2035. Starcloud filed plans with the FCC in March 2026.

Professional subscribers can read much more on SpaceX and the space economy at our new Marketdesk.ai portal. 

Tyler Durden Sun, 06/14/2026 - 22:45

Exxon Weighs Woodside Deal As LNG Becomes Strategic Priority

Exxon Mobil is assessing a range of options to expand its global gas business, with Woodside Energy reportedly among the companies being reviewed as potential acquisition candidates, according to Bloomberg.

No formal approach has been made, and internal evaluations remain preliminary. Both companies have declined to comment.

Bloomberg writes that Woodside offers several strategic advantages for Exxon. As a leading LNG producer with established relationships across key Asian markets, the Australian company would provide immediate scale in a sector where Exxon has historically been less dominant than some of its European peers. Its growth pipeline includes the Louisiana LNG project in the US and major Australian developments such as Scarborough and Browse.

Interest in LNG assets has intensified amid ongoing concerns about global supply security, particularly following disruptions to Middle Eastern export routes. This has increased the value of producers with diversified supply bases and long-term customer contracts in Asia.

For Exxon, any transaction would follow its 2024 acquisition of Pioneer Natural Resources and further broaden its energy portfolio beyond North America. Woodside’s existing partnership with Exxon in the Bass Strait venture could also provide a degree of operational familiarity.

While Woodside is not the only company under review, it stands out as one of the few sizeable LNG-focused businesses available globally. Any potential bid would likely attract significant market attention and serve as an early challenge for new Woodside CEO Liz Westcott.

More broadly, the operating environment for oil and gas producers has improved under the Trump administration. Since returning to office in 2025, President Trump has prioritized domestic energy development through a combination of regulatory rollbacks, faster permitting processes, and support for expanded LNG exports. While commodity prices remain the primary driver of industry profitability, the policy backdrop has generally been viewed as favorable for large producers, encouraging investment, consolidation, and long-term growth projects across the sector.

Tyler Durden Sun, 06/14/2026 - 21:35

The Inflation Sh*t Is Hitting The Fan

Submitted by QTR's Fringe Finance

This week was proof that the inflation story that markets desperately want to go away refuses to cooperate. It also adds to the case that new Fed chair Kevin Warsh could have his hands tied — and may ultimately need to redefine inflation to untie them.

This week the Bureau of Labor Statistics reported another really ugly wholesale inflation print, adding to a growing pile of evidence that inflation pressures are proving far more persistent than policymakers, economists, and investors had hoped.

The Producer Price Index rose 1.1% in May, well above economist expectations of 0.7%. On a year-over-year basis, wholesale inflation accelerated to 6.5%, the highest reading since November 2022.

Even though core PPI, which excludes food and energy, came in slightly below expectations at 0.4% versus estimates of 0.5%, that distinction shouldn’t provide much comfort. The headline figure remains extraordinarily elevated, and businesses are still dealing with rising costs that eventually work their way through supply chains and into consumer prices. CNBC reported:

Most of the acceleration in the PPI — nearly 80% — came from a 2.8% surge in final demand goods prices, the biggest increase ever in a data series going back to December 2009. In turn, 80% of that increase came from a 10.7% jump in energy.

Zero Hedge posted the following chart on X showing the jump:

Economist Peter Schiff noted on X:

Producer prices spiked 1.1% in May, following a downwardly revised 1.1% rise in April. That's back-to-back months of 14% annualized increases. So far in 2026, the PPI is already up 4%. If this pace continues, it will rise 10% in 2026, matching the 2021 gain, the most since 1980.

PPI is often viewed as a leading indicator for future inflation because it measures costs before they reach consumers. When businesses face higher input costs, those costs rarely disappear into some magical accounting black hole. They generally get passed along. Companies can absorb some pain for a while, but eventually somebody pays the bill. Historically, that somebody is the consumer.

The significance of today’s report extends beyond a single monthly data point. It comes on the heels of yesterday’s CPI report, which showed inflation accelerating once again. The Consumer Price Index rose 0.5% during the month, pushing annual inflation to 4.2%. While both figures matched economist expectations, that hardly qualifies as good news.

In fact, inflation has now climbed above 4% for the first time in three years and sits at its highest level since April 2023. Personally I’m not sure how it could be made any clearer to the market that rates are going to have to hold steady or move higher than being nowhere f*cking near the Fed’s 2% “target”.

But markets seem determined to celebrate inflation reports whenever they merely meet expectations. However, there is a difference between meeting forecasts and solving inflation. The Federal Reserve’s target remains 2%. Inflation is currently running at 4.2%. That isn’t victory. It’s more than double the Fed’s target.

Taken together, yesterday’s CPI report and today’s PPI report paint a picture that should make rate-cut enthusiasts increasingly uncomfortable. Consumer inflation is accelerating. Wholesale inflation is accelerating. Energy prices are pushing higher. And the broad disinflation narrative that markets spent the better part of the last year embracing is showing signs of breaking down.

Last month, I argued that markets were underestimating how quickly the conversation could shift from rate cuts to rate hikes. At the time, that seemed like an aggressive position. Most investors were still operating under the assumption that inflation would continue drifting lower, growth would soften in an orderly fashion, and the Fed would eventually ride in with rate cuts to keep the party going.

That assumption looks considerably shakier today. And every inflation report that comes in hot further limits the Federal Reserve’s options.

At best, this data supports a case for keeping rates elevated for significantly longer than markets would like. At worst, it supports a growing argument that the next move from the Federal Reserve may not be lower rates at all…it may be higher.

That possibility still sounds absurd to many investors because markets have spent years conditioning themselves to expect monetary accommodation whenever conditions become uncomfortable. Somewhere along the way, investors became convinced that central banking was supposed to function like a customer service call center for the S&P 500.

Stocks down? Cut rates. Economy slowing? Cut rates. Credit markets stressed? Cut rates. Investors sad about the death of their pet goldfish? Cut rates. Octogenarian billionaires complaining about flatulence that investments are giving them? Cut rates.

Unfortunately for that crowd, inflation doesn’t particularly care about market expectations, portfolio allocations, or CNBC panel discussions about why six cuts are definitely coming next year.

The Fed can tolerate slower growth. It can tolerate weaker sentiment. It can tolerate hedge fund managers with gas and anchors nearly shitting themselves on financial television. What it cannot tolerate indefinitely is inflation running more than double its target while wholesale prices reaccelerate to levels not seen in years.

And that’s where this vice grip keeps tightening. This market is already facing a half-dozen serious roadblocks and questions that all investors should know about. I wrote about them earlier this week and it’s a free read here.

Now, every hot inflation report removes another degree of freedom from policymakers. Every upside surprise forces markets to reconsider assumptions about lower rates, easier financial conditions, and endless liquidity. Every month that inflation remains elevated increases the probability that “higher for longer” eventually becomes “higher still.”

That’s bad news for an economy that has spent the better part of fifteen years becoming addicted to cheap money.

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Higher rates don’t simply affect stock valuations. They tighten financial conditions across the entire economy. They pressure borrowers. They increase refinancing risk. They squeeze commercial real estate. They stress private credit. They raise funding costs. They expose leverage that only works when money is cheap. The longer rates stay elevated, the tighter that grip becomes.

Yesterday’s CPI report showed inflation running at 4.2%, the highest level in more than three years. Today’s PPI report showed wholesale inflation running at 6.5%, the highest level since late 2022.

Neither report supports the case for imminent rate cuts. Together, they strongly support the opposite conclusion. At a minimum, they reinforce the argument that rates cannot be cut anytime soon without the Fed risking what little inflation-fighting credibility it has left. At the extreme, they strengthen the case that policymakers may eventually have to consider raising rates again.

That is a conversation markets still seem remarkably unwilling to have. Instead, investors continue behaving like a rate-cut rescue package is just one meeting away. Every soft data point gets interpreted as bullish because it means cuts are coming. Every strong data point gets interpreted as bullish because growth is resilient. Somehow every possible outcome leads to the exact same conclusion: buy more stocks.

It’s a fascinating intellectual framework. Unfortunately, inflation data has a nasty habit of ruining good stories. We’re already operating in territory that would have sounded ridiculous a decade ago. Inflation remains far above target. Interest rates are sitting near multi-decade highs. Government debt continues exploding. Asset prices remain historically elevated. Consumers are increasingly stretched. Credit markets are showing signs of strain. Yet markets continue acting as though the return of free money is some sort of natural law.

The reality is that the bill for years of monetary excess — and Janet Yellen’s massive super-genius brainpower — is still arriving.

At her final news conference as Fed chair Wednesday, Yellen said the Fed’s failure to bring inflation up to the central bank’s 2 percent mandate is her single disappointment.

“We have a 2 percent symmetric inflation objective. For a number of years now, inflation has been running under 2 percent, and I consider it an important priority to make sure that inflation doesn’t chronically undershoot our 2 percent objective,” she said.

The unprecedented situation we’re in isn’t stabilizing. It’s becoming more unstable. The vice grip on the economy and financial markets is tightening one data point at a time. The screws turn a little further with every inflation report that refuses to cooperate, every producer-price surprise, every CPI release that reminds everyone that inflation never actually went away—it merely stopped accelerating for a while.

The uncomfortable truth is that policymakers spent years trying to convince everyone there was a painless exit from the biggest monetary experiment in modern history. Now they’re discovering the same thing everyone else eventually discovers and the thing that Austrian economists have been screaming from rooftops: there are no painless exits, only delayed consequences.

Now read:

• “This Chart Should Stop You Cold In Your Tracks”

• Strategy’s New Math: Dilution Equals Accretion?

• I, Too, Am Full Of Shit

• Stocks I’d Watch If The Market Keeps Plunging

• Walking Away

• Lest We Forget, Private Credit Is Still Imploding

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QTR’s Disclaimer: Please read my full legal disclaimer on my About page here. This post represents my opinions only. In addition, please understand I am an idiot and often get things wrong and lose money. I may own or transact in any names mentioned in this piece at any time without warning. Contributor posts and aggregated posts have been hand selected by me, have not been fact checked and are the opinions of their authors. They are either submitted to QTR by their author, reprinted under a Creative Commons license with my best effort to uphold what the license asks, or with the permission of the author.

This is not a recommendation to buy or sell any stocks or securities, just my opinions. I often lose money on positions I trade/invest in. I may add any name mentioned in this article and sell any name mentioned in this piece at any time, without further warning. None of this is a solicitation to buy or sell securities. I may or may not own names I write about and are watching. Sometimes I’m bullish without owning things, sometimes I’m bearish and do own things. Just assume my positions could be exactly the opposite of what you think they are just in case. If I’m long I could quickly be short and vice versa. I won’t update my positions.

As of May 20, 2026 I personally no longer actively trade (read my story here). My investing/saving is done by recurring contributions mostly to sector ETFs and a few select equities, trusted third parties who oversee my accounts, and advisors. Such advisors or funds, through individual equities, options, index funds, mutual funds, ETFs, or other securities, may have positions in, exposure to, or holdings of names mentioned herein that I know nothing about. Basically, via index funds, ETFs and individual equities it is possible I could own, have exposure to, or not own anything at any point. As of the same date, May 20, 2026, in an attempt to lead a healthier lifestyle, I’ve also excluded myself from fantasy sports, sports betting, online and in-person casinos and prediction markets.

And all positions can change immediately as soon as I publish this, with or without notice and at any point I can be long, short or neutral on any position. You are on your own. Do not make decisions based on my blog. I exist on the fringe. If you see numbers and calculations of any sort, assume they are wrong and double check them. I failed Algebra in 8th grade and topped off my high school math accolades by getting a D- in remedial Calculus my senior year, before becoming an English major in college so I could bullshit my way through things easier.

The publisher does not guarantee the accuracy or completeness of the information provided in this page. These are not the opinions of any of my employers, partners, or associates. I did my best to be honest about my disclosures but can’t guarantee I am right; I write these posts after a couple beers sometimes. I edit after my posts are published because I’m impatient and lazy, so if you see a typo, check back in a half hour. Also, I just straight up get shit wrong a lot. I mention it twice because it’s that important.

Tyler Durden Sun, 06/14/2026 - 21:00