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Solid 7Y Auction Prices "On The Screws" With Solid Foreign Demand

Today's lone coupon auction, the sale of $16BN in 20Y notes, took place at 1pm, just an hour ahead of the FOMC Minutes release, and the auction was generally very strong, with maybe a one glitch. 

The sale stopped at a high yield of 5.122%, up from 4.883% in April, and the second highest in the history of the 20Y auction with just the 5.257% in October '23 printing higher. The yield stopped on the screws with the When Issued 5.122%, and followed two stopping through auctions, and 11 of the past 12). 

The bid to cover was 2.55, down from 2.68 in April and arguably the only weak spot in today's auction, as it was the lowest since February. 

The internals were solid, with Indirects awarded 67.67%, up from 67.39% and the 63.5% recent average. And with Directs taking 22.9%, unchanged from the previous month, Dealers were left with 9.4%, down from 9.7% and one of the lowest Dealer awards on record.

Overall, this was a solid 7Y auction and one which had no problem finding buyers despite, or perhaps because of the recent surge in yields which today has reversed modestly thanks to lower oil prices.

 

Tyler Durden Wed, 05/20/2026 - 13:20

Trump Admin Announces Criminal Charges Against Former Cuba President Raul Castro

Update (1300ET): As we wrote earlier in anticipation, the US sought to unseal an indictment against former Cuban President Raúl Castro, sharply escalating a standoff with Havana as the Trump administration attempts to force change on the island after nearly seven decades of communist rule.

The charges are related to the shooting of two humanitarian planes in 1996.

The Department of Justice asked to unseal the indictment against Castro and five other people in a filing in federal court in Florida on Wednesday.

The indictment charges Castro with seven counts including conspiracy to kill U.S. nationals, destruction of aircraft and murder for each of the four passengers aboard the planes being flown by Brothers to the Rescue, a group that conducted rescue missions for Cuban exiles who sought to flee the country.

For 30 years, Cuban exiles in America and their representatives in Congress such Rep. Carlos Gimenez, R-Fla., pressured the DOJ to bring charges against the 94-year-old Ruz, his late brother Fidel, and others in connection with the Cuban MiG fighter jets shooting down the BTTR civilian planes when they were outside Cuban airspace and flying back toward Florida.

A number of Republican members of Congress on Wednesday morning held a press conference condemning the Communist Cuban regime and Ruz and saying they expected him to be charged. The indictment against Ruz was unsealed later in the day.

*  *  *

As American Greatness detailed earlier, the Trump administration is preparing to escalate pressure on Cuba’s communist regime by pursuing criminal charges against former Cuban leader Raúl Castro over the 1996 shootdown of civilian aircraft operated by a Miami-based exile group.

According to reports, the charges are expected to be announced Wednesday and would center on the incident in which Cuban fighter jets destroyed two planes flown by Brothers to the Rescue, killing all four men aboard.

The US Department of Justice is expected to make the announcement in conjunction with a ceremony hosted by the US Attorney’s Office in Miami honoring the victims of the attack.

The indictment would mark a major escalation in President Donald Trump’s campaign against the Cuban regime, which has remained in power since Fidel Castro’s communist revolution in 1959.

Raúl Castro, now 94, served as Cuba’s defense minister at the time of the attack and later succeeded his brother, Fidel Castro, as president.

The two planes belonged to Brothers to the Rescue, an organization formed by Cuban exiles in Miami that searched for refugees attempting to flee the island across the Florida Straits. Cuban authorities claimed the aircraft violated Cuban airspace and justified the attack as a defensive action.

The United States condemned the shootdown at the time and imposed sanctions on Havana, but previous administrations stopped short of criminally charging either Castro brother.

An international aviation investigation later concluded the planes were destroyed over international waters.

The expected indictment comes as the Trump administration intensifies its pressure campaign against Cuba’s socialist government. The administration has tightened sanctions and threatened penalties against countries supplying fuel to the island, worsening economic conditions and contributing to severe power shortages across Cuba.

Cuban Foreign Minister Bruno Rodríguez recently struck a defiant tone amid growing tensions with Washington.

“Despite the embargo, sanctions and threats of the use of force, Cuba continues on a path of sovereignty towards its socialist development,” Rodríguez said earlier this month.

The administration’s expected legal action against Castro mirrors previous moves against other anti-American socialist regimes in Latin America. Earlier this year, former Venezuelan leader Nicolás Maduro was captured following a US military raid after being indicted on drug trafficking charges.

Tyler Durden Wed, 05/20/2026 - 13:11

Commercial Electricity Use Will Surpass Residential In 2027, As Price Surge Set To Continue: EIA

By Robert Wilson of UtilityDive

Commercial electricity consumption is likely to surpass residential use for the first time on record in 2027, the U.S. Energy Information Administration said Tuesday in its Short-Term Energy Outlook.

The commercial sector, which includes hyperscalers, bitcoin miners and cloud computing, is expected to see electricity sales grow 2.2% to about 1,530 billion kWh in 2026 — roughly the same as the residential sector — followed by 5.3% growth the following year, EIA said.

Demand from the residential sector, which has historically accounted for the largest share of U.S. electricity use, will remain largely flat over the next two years, growing about 0.5% in 2026 and 2027. Total U.S. electricity consumption in 2026 will be almost 4,250 billion kWh, up 1.3% from 2025, and is expected to grow 3.1% in 2027.

Meanwhile, U.S. residential electricity prices will continue to rise amid growing demand, particularly from the commercial sector, which includes data centers, the EIA said.

Residential customers will pay an average of 18.2 cents/kWh this year, “a nearly 5% increase from 2025, which is similar to the increase in U.S. prices between 2024 and 2025,” EIA estimated. “We expect residential prices to grow at a slightly lower rate of 2% next year.”

“Residential prices have been growing in all regions of the United States, and we expect this trend to continue,” EIA said. Areas along the East coast will experience the largest increases in residential prices, with average annual growth as high as 7% for the next two years.

“Electric utilities in these regions are citing various factors for rising electricity rates, including higher fuel prices for generation and expenses for bolstering the transmission grid against extreme weather and to accommodate rising power demand,” the short-term outlook said.

Industrial sales, the smallest of the three segments, are also rising, according to EIA. “We forecast industrial electricity consumption will grow by 1.0% in 2026 and 4.0% in 2027 to reach a total of 1,095 [billion] kWh next year,” the monthly report said. “Increases in electricity demand for both the commercial and industrial sectors is strongest in the West South Central region, driven by data center and manufacturing growth in Texas.”

Tyler Durden Wed, 05/20/2026 - 13:00

FOMC Minutes Preview: Look For "Easing Bias" Dissent Details Inside Powell's Hawkish Swan Song

Today's FOMC minutes, released at 2pm ET, will be closely watched for further details surrounding the increasingly hawkish split within the Committee following the April meeting, Jerome Powell's last as Fed Chair. With three voters dissenting against retaining the easing bias - and Fedʼs Collins later suggesting she would have supported removing it too - markets will look to see how broad support was for removing the easing bias, particularly after Powell said more officials now view a hike just as likely as a cut, according to Newsquawk.

Discussions around inflation risks and the labor market will also be in focus given the current macro backdrop, with the jobs market viewed as stable while inflation remains above target and faces upside risks from the Middle East conflict. Traders will also watch for any early signs of debate surrounding future balance sheet policy with Warsh set to take over as Chair from Powell. 

The April FOMC statement and vote split leaned hawkish. While outgoing Governor Miranʼs dissent in favor of a 25bps rate cut was widely expected, three voting members (plotted below) dissented against retaining the easing bias in the statement (Hammack, Kashkari, Logan).

As a reminder:

• Hammack said the easing bias was no longer appropriate given broad-based inflation pressures, higher energy prices, resilient growth and a labour market near full employment.
• Kashkari said he wanted to signal growing rate hike risks, warning that a large price shock could unanchor inflation expectations and require tighter policy to defend the Fedʼs 2% target.
• Logan dissented because she believed the Fed should not imply easing given uncertainty around the outlook, stable employment and concern about getting inflation back to 2%.

Elsewhere, the statement shifted inflation language, replacing “somewhat elevated” with “elevated”, while also attributing the move to higher global energy prices. On the Middle East, the Fed dropped the prior “uncertain implications” wording, instead stating directly that developments are “contributing to a high level of uncertainty”. Growth and labor market language was otherwise largely unchanged, with activity continuing to expand at a “solid pace” and unemployment “little changed”. 

However, given energy prices have continued to rise in the wake of the meeting, and money markets are no longer pricing rate cuts this year (with markets currently discounting roughly a 60% probability of a hike by year-end), traders will look for evidence of how widespread inflation concerns were within the Committee and what conditions could push the Fed towards hikes. That said, the minutes reflect discussions held at the time of the meeting, meaning the recent hot CPI and PPI reports will not yet be incorporated. 

Powell said policy remains in a “good place” to wait and see, but acknowledged the Committee is moving closer to dropping its easing bias, with more officials now viewing hikes just as likely as cuts. While he stressed no one is actively calling for hikes at present, analysts noted that the threshold for future easing has risen, with the Fed wanting more confidence around tariffs and energy prices before considering cuts. Powell also warned that core inflation risks are “real”. He added that, beyond the three official dissenters, several non-voters also favored removing the easing bias but ultimately supported the decision to hold rates.

That dynamic may create challenges for incoming Chair Warsh, whose first meeting will be in June. While Warsh has advocated lower rates, he may find limited support for a more dovish stance within the current Committee. Bowman and Waller remain among the more dovish officials, though neither has backed immediate easing in the way Miran did. Note, the latest reports suggest Kevin Warsh will be sworn in as Fed Chair this Friday at a White House event. 

Additionally, Warsh has advocated for a tighter balance sheet policy. Last week, Fed Governor Barr argued that easing bank liquidity requirements to shrink the Fedʼs balance sheet would undermine financial stability and increase the Fedʼs market footprint. Barr said the 2023 banking stresses suggest liquidity requirements should rise, not fall. As such, traders will also watch the minutes for any discussion surrounding future balance sheet strategy alongside the debate over the easing bias.

Tyler Durden Wed, 05/20/2026 - 12:45

StanChart CEO Scrambles Into Damage Control After "Lower-Value Human Capital" Comment Triggers Backlash

Standard Chartered CEO Bill Winters and his team spent Wednesday in damage-control mode after the head of the London-based international bank told investors on Tuesday that artificial intelligence would be used to replace "lower-value human capital," sparking a backlash online.

"Many of you will have seen media coverage following the Investor Event in Hong Kong, particularly the reporting around automation, AI, and workforce changes," Winters wrote in an internal memo to employees on Wednesday that was seen by Bloomberg.

He continued, "I know this may be unsettling when reduced to simple headlines or a quote out of context."

The outrage stems from STAN's Tuesday announcement to cut 15% of its corporate roles (about 7,800 jobs) by 2030 as part of a broader efficiency push amid the adoption of AI.

During the investor event, Winters said, "It's not cost-cutting, it's replacing low-value human capital with financial and investment capital." The substitution of workers in favor of machines "will accelerate as we go forward into AI."

Bloomberg noted that Winters' memo sent to workers earlier today "adopted a more empathetic tone, emphasizing the bank's commitment to supporting its workforce during the transition."

That memo read, "We will continue to invest in technology, platforms, and automation to improve how we operate, serve clients and position the Bank for long-term growth. I want to be absolutely clear that the future of Standard Chartered depends on the talent, judgment, relationships, and commitment of you, our colleagues."

“It’s not cost cutting; it’s replacing in some cases lower-value human capital”

Standard Chartered CEO Bill Winters delivered a blunt message on the future of the bank’s workforce. @aishagani explains the growing trend among finance leaders acknowledging the realities of AI… pic.twitter.com/j55u4uPdZR

— Bloomberg (@business) May 19, 2026

Socialists were not thrilled with Winters' "lower-value human capital" comment:

"Angry? You should be! This is how the employer described its staff: "lower-value human capital."

Angry? You should be! This is how this employer described its staff “lower-value human capital”.

“Standard Chartered bank could cut more than 7,500 jobs as it seeks to replace "lower-value human capital" under a technology and artificial intelligence (AI) drive”.…

— Socialist Labour Party (@soclp_uk) May 20, 2026

Beyond StanChart, corporate America is losing engineers and other white-collar workers who are burdened by insurmountable student and credit card debt as AI adoption accelerates. This era will likely be remembered as the great "white-collar purge," and the response may be continued backlash toward data centers.

Earlier today, Meta began cutting 8,000 jobs, while leaked audio of CEO Mark Zuckerberg described how AI is monitoring high-skilled employees. According to X user Official Layoff, who leaked the audio: "AI is replacing the contractor. Then the employee trains the AI. Then the AI replaces the employee."

Tyler Durden Wed, 05/20/2026 - 12:25

Three Supertankers Carrying 6 Million Barrels Exit Strait Of Hormuz

Three commercial supertankers carrying a combined 6 million barrels of Middle East crude oil have successfully exited the Strait of Hormuz, according to Reuters.

The vessels departed the strategic waterway on Wednesday, after being stranded inside the Persian Gulf for over two months, lending hope to an end to the closure of the strait.

The crude cargoes were split evenly among three Very Large Crude Carriers (VLCCs) heading to Asian refining hubs. The first was Universal Winner, a South Korean-flagged supertanker carrying 2 million barrels of Kuwaiti crude oil. Shipping data on LSEG and Kpler showed that the vessel is currently en route to Ulsan, South Korea, to discharge at an SK Energy facility by June 9.

The second VLCC was Yuan Gui Yang, a Chinese-flagged vessel hauling 2 million barrels of Iraqi Basrah crude. Chartered by Unipec (the trading arm of Sinopec), the supertanker is heading toward Guangdong province with an expected arrival on June 4.

Finally there was Ocean Lily, a Hong Kong-flagged tanker loaded with 2 million barrels split evenly between Qatari al-Shaheen and Iraqi Basrah crude. Owned by Sinochem, the vessel is tracking toward Fujian province for a June 5 arrival.

Combined, the trio have about 6 million barrels of crude on board — one of the biggest oil flows in a single 24 hour period in over a month.

All three vessels switched off their digital transponders before exiting. Two have since transited the strait and were sighted near Oman while the status of the third is unclear. It also remains to be seen if they all can get past a seaparte US blockade. The supertanker heading to South Korea, the Universal Winner, is the first observed sailing by a VLCC to the Asian country since the war began.

Iran's state TV underscored that the country now appears to be in sole control over who crosses the strait and who doesn't. “Today other countries like South Korea, taking their example from the Chinese, coordinated with the IRGC navy and arranged the passage of their ships through the Strait of Hormuz,” the TV correspondent says in report from near the strait. “Coordination increased today and it’s expected to increase further tomorrow”

The correspondent said he witnessed five oil supertankers passing the strait with IRGC coordination, without giving further details

Meanwhile, following the footsteps of China and South Korea, India is preparing to send its own vessels through the Strait of Hormuz to load up energy cargoes from suppliers in the Middle East, Bloomberg reported; it would be the first time since the Iran conflict began that the country will do so.

State-owned Shipping Corp. of India is ready to go back to the Persian Gulf once it has approval from the Indian Navy and it has business from oil refiners, one of the people said. 

Shipping through Hormuz, which handles roughly a fifth of global oil flows, has been virtually halted since the Iran war began at the end of February, causing major disruptions and price shocks for countries like India, the world’s third-largest crude importer. It’s unclear whether Iran or the US, which are separately blockading the strait and surrounding waters amid the war, have given India a green light to send ships through the waterway. Their agreement will be critical for the plan to work. 

India’s External Affairs Minister Subrahmanyam Jaishankar met his Iranian counterpart Abbas Araghchi in New Delhi on the sidelines of a BRICS summit last week.

Recent White House briefings indicated potential progress toward an agreement to de-escalate hostilities, giving energy markets hope for a more permanent reopening of the chokepoint. Details on permanent enforcement or full reopening conditions remain sparse despite reports of Washington and Tehran having allegedly engaged in productive conversations via mediators, often with contradictory statements.

Few ships have so far managed to break through the Strait of Hormuz, with regional oil exports currently well below pre-war baselines.

Energy analysts emphasize that even if the conflict ends immediately, a backlog of structural damages and shuttered upstream infrastructure means market normalization will likely take three to four months and high oil prices are likely to persist.

Tyler Durden Wed, 05/20/2026 - 11:45

The AI Economy, Part 1: Looking Beyond The Facade

Authored by Michael Lebowitz via RealInvestmentAdvice.com,

The US economy’s curb appeal looks great. Consider that gasoline prices are nearly $5, crude oil is trading above $100, consumer sentiment is at historically low levels, and mortgage and other interest rates have remained relatively high. Yet, despite the worrisome headwinds, the US consumer-driven economy continues to expand. However, as with a house’s curb appeal, it’s not just the headline data that defines an economy. Equally important is its supporting structure. Let’s open the door to our economy to better appreciate how AI is currently impacting it and how it may change in the future.  

The question we explore here is whether the AI investment boom is genuinely broadening this country’s economic footing or weakening the labor force, the foundation of the economy.

We separate the article into two parts. Part one is the optimistic case: an AI-induced, productivity-led economic boom in which the benefits spread quickly to society.  Part Two will address a more bearish outlook: the possibility of a large gap in the distribution of AI’s productivity benefits, accruing to corporations much more quickly than to employees.  

AI Spending Drives GDP

The amount of capital flowing into AI infrastructure development and thus GDP is enormous. As shown in the graph below, the capital expenditures (Capex) of just four companies, Amazon, Google, Microsoft, and Meta, are now over $700 billion annually, roughly 7x what they were five years ago. Based on the 2026 Capex expectations, a third of GDP growth could come from the four companies.

The AI buildout extends well beyond the four balance sheets noted above. Every dollar of Capex spent by the large hyperscalers creates demand across a wide supply chain. For example, construction firms are building data center campuses the size of small cities, utility companies are scrambling to add generation capacity, domestic semiconductor producers are ramping up output, and fiber optic and networking suppliers have multi-year order backlogs. The electrical grid is facing its first sustained demand growth in two decades, driven almost entirely by data center power requirements, which are projected to more than double by 2030.

Historical Context

The scale of today’s AI buildout has historical precedent. For instance, the railroad expansion of the mid-1800s involved more extreme infrastructure investment, with railway Capex estimated to have consumed as much as 10-20% of GDP at its peak. A more recent and appropriate comparison is the telecom buildout of the late 1990s, when Capex peaked at roughly 1.0-1.2% of US GDP. Today’s AI infrastructure spending by just the four companies has recently surpassed that telecom figure.

But unlike the debt-fueled telecom boom, today’s AI spending has thus far been funded almost entirely by the cash and cash flows of extremely profitable corporations. While the composition of funding is shifting from cash and free cash flow to debt, the companies noted above have debt-to-equity ratios well below the S&P 500 average and significantly lower than during the telecom buildout. Moreover, earnings from other highly profitable business lines will continue to provide them with substantial cash for investment.

The Consumer Is Resilient But Running Thin

While AI spending is tremendous and boosting the economy, some argue that it is masking weaknesses in consumer spending, which is the most important contributor to economic growth.  The graph below shows that consumer spending accounts for about 67% of GDP, as it has since 2001. There has been no discernible change over the last few years since the advent of AI.

While the recent contribution of consumer spending has not changed meaningfully, its sustainability is a key factor driving future growth. While consumption is holding, there are signs that the means to spend are deteriorating. For instance, the personal savings rate has fallen to near its lowest level since 1960, as shown below. This suggests that a growing share of personal consumption is being funded by drawing down savings rather than by current earnings.

Such behavior is not unusual during periods of strong employment, as consumers spend more when they are confident about their job and wage prospects. That said, a low savings rate is a yellow flag, but it has coexisted with healthy economic expansions before.

The more important gauge of future consumption is wages, which leads us to the labor market

A Churning Labor Market

AI will swallow up jobs, some pessimists say. Thus far, that is not the case. For instance, in 2025, nearly 55,000 of 1.17 million layoffs were directly attributed to AI, according to Challenger, Gray & Christmas. Other estimates peg the number higher at 200,000–300,000 positions in 2025. While that estimate is more concerning, it is only about 0.15–0.20% of total nonfarm employment.

Looking forward, the outlook gets murky. Goldman Sachs has a dire outlook with 300 million jobs globally at risk. But that only tells half the story. The World Economic Forum (WEF) estimates that AI will create 170 million jobs globally.

There is no doubt that AI will have significant impacts on the economy, labor market, and many individuals. Prior innovations are proof. To wit, about two-thirds of US jobs in the 1940s no longer exist. The replacement jobs were enabled by new innovations.

While the future remains uncertain, the past relationship between job growth, wages, and productivity is encouraging. As we share below, PwC claims “wages are rising 2x faster in industries most vs least exposed to AI.”

Productivity Gains Will Spread

Economic growth and wage growth are a direct function of productivity. Productivity measures the amount of leverage an economy can generate from its two primary inputs, labor and capital. Without productivity, an economy is solely reliant on two limited inputs. Thus, without productivity growth, economic growth is unlikely over the long run.

Therefore, it’s critical to discuss how much productivity AI will generate and how it will be distributed.  The first part, how much, is nearly impossible to assess today. That said, PwC estimates that productivity growth has nearly quadrupled in AI-exposed industries since 2022. Further:

Is AI really the cause of this surge in productivity? We can’t prove causation with certainty, but we do know that revenue growth in AI-exposed industries accelerated sharply in 2022, the year that the launch of ChatGPT 3.5 awakened the world to AI’s power. Since then, as companies have raced to leverage this technology, the value created in industries best positioned to use AI has skyrocketed. In the space of two years, industries most able to use AI have changed from productivity laggards to leaders, suggesting that investments in AI are paying off. AI’s promise is proving to be real, and we are only in the early days of AI adoption.  

Regarding the distribution of productivity, some pessimists argue that AI’s productivity gains are flowing overwhelmingly to high-income knowledge workers. While that is currently true, that has also been the case with every major technology wave in its early phase. Factory automation initially benefited capital owners. Personal computers initially benefited white-collar workers. The internet initially benefited the educated and connected. But over time, prices fall, adoption rates grow, and the benefits spread across the entire workforce.

History’s verdict is consistent: the benefits start narrow and ultimately spread wide across the economy. As we share in the graphic below, as a result of the US being a global leader in innovation, our poorest states, Mississippi, West Virginia, and Arkansas, have a similar or higher GDP per capita than other large nations.

Summary

While still early in the AI revolution, the economic data points to genuine economic momentum. Whether AI productivity benefits can become more broadly based across the economy is the question that Part Two of this article addresses.

Before we present the other side, we will leave you with a PwC table that addresses concerns about productivity and the labor market.

Tyler Durden Wed, 05/20/2026 - 11:25

Judge Blocks ICE Agents From Conducting Arrests At Immigration Courts In New York

Authored by Aldgra Fredly via The Epoch Times (emphasis ours),

A federal judge issued a ruling on May 18 barring federal agents from conducting arrests at three Manhattan immigration courts, except in limited circumstances.

A federal officer stands by in a hallway at New York Federal Plaza Immigration Court inside the Jacob K. Javitz Federal Building in New York on October 1, 2025. Charly Triballeau / AFP via Getty Images

The ruling by U.S. District Judge P. Kevin Castel stemmed from a lawsuit filed by the New York Civil Liberties Union and other groups on behalf of The Door and African Communities Together, which sought to challenge U.S. Immigration and Customs Enforcement (ICE) policies that allow federal agents to arrest people in immigration courts.

Castel had initially declined to block the policy last September, but the plaintiffs later filed a motion in response to a March letter in which the government admitted that the 2025 ICE guidance—which it had relied on to justify arrests at immigration courts following the lawsuit—“does not and has never applied” to civil immigration enforcement actions at immigration courts.

In a 15-page ruling on May 18, Castel granted the plaintiffs’ request to stay the ICE policy, barring federal agents from arresting people at three Manhattan immigration courts—26 Federal Plaza, 201 Varick Street, and 290 Broadway—except under “certain enumerated circumstances.”

“There is a strong governmental interest in enforcing immigration laws. There is also a serious interest of The Door to be free to assist its members in defending removal proceedings brought against them and pursuing defensive asylum applications before an [immigration judge] without fear of arrest,” Castel stated.

The judge added that ICE agents are only allowed to make arrests at immigration courts when there are “serious threats of physical harm to public safety.”

Castel also said the government’s concession that the 2025 policies did not apply to immigration courts warranted reexamining his previous ruling “to correct a clear error and prevent a manifest injustice.”

In a March 24 letter addressed to Castel, government lawyers expressed regret over a “material mistaken statement of fact” presented to the court and said it was caused by “agency attorney error.”

“This error, however, was not caused by a lack of diligence and care by the undersigned attorneys. The undersigned were specifically informed by ICE that the 2025 ICE Guidance applied to immigration courthouse arrests,” the letter states.

Amy Belsher, director of Immigrants’ Rights Litigation at the New York Civil Liberties Union, called the latest ruling “an enormous win for noncitizen New Yorkers seeking to safely attend their immigration court proceedings.”

“We look forward to a final ruling in the case that sets aside these cruel, pointless policies once and for all,” Belsher said in a May 18 statement.

The Epoch Times reached out to the U.S. Department of Homeland Security, which oversees ICE, for comment, but did not receive a response by publication time.

Tyler Durden Wed, 05/20/2026 - 10:45

Oil Prices Extend Decline After The Largest Crude Inventory Drawdown In History, Cushing 'Tank Bottoms' Loom

Oil futures are down bigly this morning following comments from President Trump that the war in Iran would be ended "very quickly," but investors remained uncertain about the potential for de-escalation.

"We're going to end that war very quickly. They want to make a deal so badly, they're tired of - this should have happened for 47 years," Trump told a group of Congress members at the White House's annual congressional picnic on Tuesday.

"Somebody should have done something about it. And it's going to happen, and it's going to happen fast. And you're going to see oil prices plummet," the president added.

Oil's declines were also reportedly driven by this optimism about a final deal draft peace agreement:

On Tuesday, two Chinese tankers carrying crude oil traversed the Strait of Hormuz.

Another, a South Korean vessel, was passing through it, according to a Reuters report. Jim Reid, of Deutsche Bank, noted that this marks "one of the busiest days since the closure."

However, Iran's Revolutionary Guards also warned on Wednesday that any renewed strikes on Iran could expand the war beyond the region.

The IRGC also said it had not used all its capacities against the U.S. and Israel, while warning that their "devastating blows will crush" the adversaries, the IRGC said in a statement on its Sepah News website.

For now, all eyes are on the official inventory and supply data (and SPR) after yuuuge draws reported by API overnight...

API

• Crude -9.1mm (-3.4mm exp)

• Cushing -1.4mm

• Gasoline -5.8mm

• Distillates -1.0mm

DOE

• Crude -7.863mm (-6.0mm exp)

• Cushing -1.604mm

• Gasoline -1.548mm

• Distillates +372k

Crude stocks tumbled last week (biggest draw since Feb 13th) for the fourth week in a row. Gsoline inventories saw their 14th weekly drawdown in a row whil distillates saw another small build...

Source: Bloomberg

Strategic Petroleum Reserve drawdowns continue to accelerate with 9.92mm barrels/day - a record - drained last week. That means over 10% of the SPR has been drained in the last few weeks...

Source: Bloomberg

Total US crude stocks including the SPR are at the lowest level since June 2025 with this week seeing the largest SPR + Commercial stock drawdown in history...

Gasoline stockpiles continued their steady decline last week, falling another 1.5 million barrels. Stocks are still at the lowest seasonal levels since 2014.

Cushing stocks are rapidly approaching 'tank bottoms' once again...

US Crude production dipped very modestly last week...

Source: Bloomberg

WTI (July 2026) suddenly plunged below $100 just ahead of the official data (on peace deal optimism) and extended the losses after the big draw...

Finally, though the closure of the Strait has already pushed oil prices up by more than half, analytics firm Woods Mackenzie said if the war is extended until the end of the year, oil prices could rise as high as US$200 per barrel, though a quick settlement could lower Brent prices to US$80 by year end.

"The Strait of Hormuz is the most critical chokepoint in global energy markets, and a prolonged closure would become far more than an energy crisis," said Peter Martin, head of economics at Wood Mackenzie.

"The longer disruption persists, the greater the impact on energy prices, industrial activity, trade flows and global economic growth."

The market is awaiting the start of the high-demand U.S. summer driving season, which begins with this weekend's Memorial Day holiday.

It appears that American drivers will face the highest gas prices ever for Memorial Day...

...not great for Midterms/Approval ratings.

Tyler Durden Wed, 05/20/2026 - 10:38

Samsung Union Postpones Massive General Strike, Puts Wage Deal To Vote

Summary:

• Samsung Union Postpones Massive Strike For Union Vote On Saturday

• Samsung Union Authorizes Massive Strike At Memory-Chip Plants After Mediation Talks Collapse  

Samsung Union Postpones General Strike For Weekend Vote 

Late Wednesday night in South Korea, Samsung and its largest union held last-minute negotiations ahead of a massive general strike.

Vice Minister Kwon Chang-jun of the Ministry of Employment and Labor joined the negotiating table between Samsung and its largest union, a move that appears to have led to a breakthrough.

South Korea's national wire service, Yonhap, reports that the union has postponed plans for a strike tomorrow and will put a tentative wage deal to a vote. 

"We will postpone the general strike scheduled for May 21-June 7 until further notice," Samsung and the union wrote in a joint press release. 

The vote on the tentative wage deal begins on Saturday.

Earlier, the union pressed forward with plans for a general strike at Samsung chip fabs due to the company negotiators' inability to scrap an existing bonus cap, allocate 15% of operating profit to worker bonuses, and formalize these new demands in a wage contract.

Samsung had previously proposed allocating 10% of operating profit to bonuses, along with a one-time special compensation package for workers that is well above industry standards.

Samsung executives argued that the union's demands would be challenging to sustain in the coming years. 

Why the union is striking...

Crisis averted? Well, all eyes are on the weekend vote.

Samsung Union Authorizes Massive Strike At Memory-Chip Plants After Mediation Talks Collapse  

Asian equities extended losses for a fourth straight session, with South Korea's benchmark KOSPI falling about 1% as the market priced in the shock of an imminent labor action at Samsung Electronics.

A full-scale, 18-day strike involving more than 47,000 workers at the world's largest memory-chip maker is set to begin Thursday, raising the risk of production disruptions across the global semiconductor supply chain, which is already tight due to AI data center buildouts.

Samsung Electronics' talks with its largest union collapsed overnight as union negotiators demanded the removal of a bonus cap, allocation of 15% of operating profit to worker bonuses, and that those terms be written into contracts, citing memory-chip maker SK Hynix's 10% profit-sharing arrangement.

Samsung negotiators accepted most of the demands, including a proposed 10% operating profit bonus pool and special compensation, but called the union's remaining requests unsustainable.

"We deeply regret that the post-mediation process has concluded [without resolution] due to delays in decision-making by the management," Samsung Electronics Labor Union Chairman Choi Seung-ho told reporters at the National Labor Relations Commission in the city of Sejong. "We cannot help but feel disappointed that the mediation ended without the company ultimately reaching a decision."

Japan's financial outlet Nikkei Asia reported, "The strike would affect only the company's domestic plants, which are the base of its chipmaking operations." 

The collapse in talks comes as Samsung shares surge on record profits, driven by soaring demand for memory chips, even as hyperscalers are set to deploy $700 billion in capex to build AI infrastructure in the US. Demand is also rising globally as the race for AI compute intensifies.

TrendForce data show that Samsung is the world's largest memory chipmaker, with a 36% market share in DRAM chips and one-third in NAND Flash chips.

Commenting on the market reaction, UBS analyst Joe Dickinson noted:

"Asia was lower for a fourth consecutive session, with the KOSPI dropping as much as 3% on Samsung strike risk before partially recovering."

UBS analyst Kevin Loke commented on the FX reaction:

USDKRW initially traded with an offered tone, with spot opening at 1513.4 and falling nearly 10 won to a low of 1503.8. However, headlines that the Samsung union strike will proceed as planned on Thursday, following a breakdown in talks, pushed the pair back higher toward 1510.

A BoK report to the president estimated a potential impact of up to KRW30 trillion in lost production. For now, USDKRW is likely to remain within a broader 1480–1520 range, with the pair relatively less sensitive to the recent thematic shift toward the global bond sell-off.

Samsung shares fell as much as 4.4% before reversing their losses. Notice "Samsung Strike" headlines in corporate media weighing on shares...

Coverage:

• Samsung Strike Threat Sparks Selling Contagion In Memory Stocks

• Samsung, South Korean Union Resume Talks As Strike Threat Risks Disrupting Memory Chip Fabs

• Samsung, Union Resume Talks After Labor Action Scare; Goldman Says "Korea: Buy"

Bloomberg pointed out, "The government has previously hinted that it could resort to rarely used emergency powers to prevent a strike if the parties fail to reach an agreement. South Korea has invoked the emergency arbitration mechanism only four times since 1969."

Tyler Durden Wed, 05/20/2026 - 10:08

Xi Warns US Against New Iran Strikes, Denounces 'Law Of The Jungle', As Putin Talks Energy Leverage In Beijing Summit

Chinese President Xi Jinping hosted Russian President Vladimir Putin for a high-stakes summit on Wednesday, just days after wrapping up closely watched talks with Trump, which by all accounts failed to produce any Washington-Beijing breakthroughs.

The optics were carefully engineered, and many international outlets observed Putin's state welcome was no less lavish and opulent than Trump's own, with the Russian leader entering Great Hall of the People with full military pomp, children waving flags, and the standard marching band - again, strikingly similar to the red-carpet treatment rolled out for Trump last week.

For example, Al Jazeera writes that "We were expecting a more low-key ceremony, but he actually received an identical welcome treatment as Trump last week." And more:

He had the red carpet rolled out for him; he received a 21-gun salute, as well as children waving Russian and Chinese flags, saying, ‘We warmly welcome you.’

The only difference is who greeted Putin at the airport. With Trump, it was Han Zheng, the vice president, and for Putin, it was Wang Yi, the foreign minister.

via Sputnik

President Xi in his opening remarks delivered a sharp critique of the current geopolitical landscape, warning that the world is at risk of regressing into the "law of the jungle" -  but hailed the Beijing-Moscow alliance as a crucial stabilizing force against what he later termed "all unilateral bullying" in the international arena, which appeared a passing jab at the United States. The very timing of the Putin summit has widely been viewed as a display of leverage.

Among key moments is that Xi called for "a comprehensive ceasefire" in the Middle East and the immediate reopening of the Strait of Hormuz. He characterized the standoff situation in the Persian Gulf as a "critical juncture between war and peace." Xi called for the "unimpeded flow" of crude transit through the strait, as it is in "the common interest of the international community."

"My four-point proposal for maintaining and promoting peace and stability in the Middle East aims to further build international consensus and contribute to easing tensions, deescalating conflict, and promoting peace," Xi said on the Iran crisis according to state news outlet Xinhua. Noticeably absent, however, was mention of finding peace in Ukraine. They agreed that it was "necessary to address the root causes of the Ukrainian crisis."

As for Iran, Xi also explicitly noted that further hostilities in the Middle East were "inadvisable" and that a "comprehensive ceasefire is of utmost urgency." Putin during the summit sought to assure Beijing that Moscow remains a "reliable energy supplier" amid global oil supply shocks, noting their bilateral relationship sits at an"unprecedentedly high level."

He even at one point invoked a classical Chinese proverb to describe his relationship with Xi: "Even if we haven’t seen each other for a day, it feels like three autumns have passed."

Xi Jinping welcomed Putin at Tiananmen Square

The leaders of Russia and China have concluded their talks in Beijing. The two sides signed around 40 bilateral agreements on cooperation in various spheres.

However, the future of the Power of Siberia 2 gas pipeline remains… pic.twitter.com/mnvLmYkwDi

— Visegrád 24 (@visegrad24) May 20, 2026

Below are some quick highlights based on some emerging reporting Wednesday:

Treaty Extension: The signing of a wave of bilateral agreements across technology, trade, and intellectual property, anchored by the extension of the 25-year-old "China-Russia treaty of good neighborliness and friendly cooperation."

The Energy Lifeline: Putin countered by assuring Beijing that Moscow remains a "reliable energy supplier" amid global oil supply shocks, noting their bilateral relationship sits at an "unprecedentedly high level."

The Crude Lifeline: China remains critical in terms of an outside Russian economic lifeline, purchasing nearly 50% of Moscow's total oil exports as Western sanctions continue to squeeze Russia's domestic capital.

On potentially reviving a major stalled Russian gas pipeline project, CNBC wrote:

Russian President Vladimir Putin met with Chinese leader Xi Jinping in Beijing on Wednesday, with the long-stalled Power of Siberia 2 natural gas pipeline on the agenda, as the Iran war disrupts energy supplies.

Kremlin foreign policy aide Yuri Ushakov said Tuesday that the project “will be discussed in great detail between the leaders.”

The planned 2,600-kilometer pipeline would carry 50 billion cubic meters of gas annually from Russia’s Yamal fields to China via Mongolia. Moscow and Beijing signed a legally binding memorandum to advance construction in September 2025, but pricing, financing terms, and a delivery timeline remain unresolved.

Later this year, in November, both Presidents Trump and Putin could attend the APEC summit (Asia-Pacific Economic Cooperation) on Chinese soil. 

via Bloomberg

The White House website hints at APEC summit attendance: "President Trump and President Xi agreed that the United States and China should build a constructive relationship of strategic stability on the basis of fairness and reciprocity. President Trump will welcome President Xi for a visit to Washington this fall. The two countries will support each other as the respective hosts of the G20 and APEC Summits later this year."

In the context of the Iran conflict Trump has lifted some oil sanctions on Russia, making its oil trade a key beneficiary of the US-Israel initiated war. "Russia has emerged as a primary beneficiary of the Middle East conflict due to the massive supply vacuum created by the closure of the Strait of Hormuz," George Voloshin, an independent energy analyst based in Paris, has commented. "Global refiners are desperate for alternative medium-sour crudes, a need that Russia’s Urals grade specifically meets."

Tyler Durden Wed, 05/20/2026 - 10:05

The Building Blocks Of A Global Stagflationary Shock Are Falling Into Place

By Peter de Groot, Head of Macro Strategy at Rabobank

The Inflation Regime That Doesn't Fade

As we noted at the outset of the Gulf conflict, history rarely repeats – but it often rhymes. The closure of the Strait of Hormuz is increasingly revealing a familiar pattern: the building blocks of a global stagflationary shock are falling into place.

A closer look across inflation indicators in advanced economies shows a clear and consistent structure. The upstream impact has been immediate and forceful – exactly as expected in an energy-driven shock. The surge in oil and gas prices has translated into sharp increases in petroleum products such as diesel, and into key industrial inputs like sulphur and fertilisers. Producer price expectations – particularly in energy-intensive sectors such as chemicals, base metals, and wood – have risen rapidly, in many cases outpacing the (initial) post-Covid surge. European industrial surveys point to strong repricing at the start of the production chain.

But further downstream, the picture is more nuanced, for now. While higher input costs are being passed through, the degree of transmission appears more muted than during the inflation surge of 2021–2022. Initial producer price data suggest that firms are adjusting prices, but not with the same breadth or intensity yet. Part of this may be timing – pass-through is always gradual – and whilst the gap between sharply rising price expectations and more modest realized price increases is notable, this could also point to more significant price hikes in the months ahead.

At the consumer level, the divergence is clearer. Inflation has responded, but the impulse remains concentrated in energy and energy-related components. Headline CPI prints have broadly matched expectations, and in some cases even surprised to the downside. Core inflation has remained contained. However, the same sort of slow transmission was seen during the initial phase of the 2021-2022 inflation surge, which, arguably, led policy makers to respond too slowly. So it’s too early to draw any firm conclusions and ‘transitory’ cannot be one of them, for now.

However, there is one crucial difference: the starting point for this shock is materially weaker demand. Labor markets have cooled in many places, albeit not to the same degree. US payrolls growth and job openings have slowed. In the Eurozone, labor market tightness indicators have eased (even as unemployment has stayed at cyclical lows). In the UK, unemployment has moved back to around 5%, vacancies have dropped to a five-year low, and wage growth continues to slow. As Stefan Koopman, our UK analyst, notes, these are not the conditions of an overheated economy requiring aggressive monetary tightening. Instead, they suggest increasing slack – an environment in which firms may struggle to fully pass on higher costs without sacrificing demand.

As a result, while energy prices are likely to push inflation higher in the coming months, the broader macro backdrop does not appear conducive to a sustained second-round inflation spiral. That said, central banks may still feel compelled to respond – more as a signal than out of necessity. In the UK, for instance, a symbolic rate hike cannot be ruled out, as policymakers seek to underscore their commitment to the inflation target, even if the case for a full tightening cycle remains weak.

Policy choices will be critical in shaping the trajectory from here. One of the defining lessons from the 2021–22 inflation episode is that policy responses can amplify shocks. The combination of large-scale fiscal support and ultra-loose monetary policy played a key role in transforming an initial supply shock into a broad-based and persistent inflation surge. Today, the policy environment is different – rates are higher, fiscal space is more constrained – but the uncertainty surrounding the duration of the Hormuz disruption complicates the outlook.

In that context, policymakers may be inclined to assume persistence rather than transience, if only as a precaution. Markets, for their part, have already moved in that direction. Bond yields have repriced sharply higher, particularly at the long end, tightening financial conditions globally. The US 10-year yield rose above 4.67% yesterday, the highest level since mid-January 2025. And although European yields were dragged higher as well, the spread of 10y Treasuries over German bunds has widened from 120bp on 13 April to nearly 150bp yesterday. The rise in US Treasury yields – alongside a widening spread over German Bunds – signals that investors are increasingly focused on both inflation persistence and fiscal sustainability.

This shift in market discipline is not going unnoticed. The IMF has urged Britain to “stay the [fiscal] course” in its ‘Article IV’ consultation. At this week’s G7 meeting, finance ministers and central bankers struck a notably cautious tone, emphasising that any policy support should remain temporary, targeted, and fiscally responsible. Compared to the sweeping interventions seen in recent crises, the response so far has been measured – arguably deliberately so.

Yet this restraint also exposes a tension. While targeted domestic support is relatively straightforward, meaningful international coordination is far more challenging. Countries face competing objectives: protecting domestic growth, ensuring economic security, and enhancing resilience. Measures such as export restrictions may serve national interests but risk undermining collective outcomes. In that sense, the G7’s commitment to cooperation may prove difficult to translate into concrete action.

This suggests a risk of fragile stagflation, with slowing growth alongside persistent inflation. The main danger is not runaway prices but policy errors and poor coordination amid ongoing geopolitical pressures. Much depends on the duration of the Hormuz disruption, as supply shocks may last longer than expected and blur the line between temporary and persistent inflation.

This may also be the reason why we see tentative signs that policymakers are beginning to look beyond purely economic tools. The economic consequences of the Hormuz closure are, after all, rooted in a geopolitical disruption. Discussions within NATO about potentially facilitating maritime passage through the strait underscore a growing recognition that resolving the supply shock itself may be the most effective form of policy response. Although there is no unanimous support yet, according to sources, as per Bloomberg reporting, the fact that NATO is reconsidering an (active) role was seen by investors as a positive development.

Meanwhile, after months of wrangling, the EU finalized the text on the US-EU trade deal, to be signed off by European Parliament and member states before Trump’s 4 July deadline. Reaching a compromise was driven by the overriding objective of “maintaining a stable, predictable and balanced transatlantic partnership”, as put by Cyprus’ minister of commerce. However, the text now includes a 2029 expiration date (unless both sides agree extension). It also includes a clause that would allow the Commission to suspend the deal if tariffs on products using steel and aluminium surpass 15% after 2026 and a ‘pause button’ should the US not keep with its commitments. So let’s see if the US wants to cooperate.

Tyler Durden Wed, 05/20/2026 - 09:50

AI Purge Accelerates: Intuit Reportedly Slashing 17% Of Workforce

Intuit, the company that owns TurboTax, QuickBooks, Credit Karma, and Mailchimp, is reportedly preparing to lay off a staggering 17% of its workforce according to Reuters, which cites an internal memo.

INTUIT TO LAY OFF 17% OF WORKFORCE: MEMO

Initial claims about to print new record low

— zerohedge (@zerohedge) May 20, 2026

Details are scant at the moment regarding the reason for the layoffs, but CEO Sasan Goodarzi sent an email to staff earlier in the day, saying that reducing complexity and simplifying the structure would help it deliver better ​products, to streamline operations and sharpen focus ​on its key bets including its AI efforts.

The company has signed multi-year deals with AI startups Anthropic and ​OpenAI to integrate their AI models into its software and add Intuit's personalized tax, finance, ‌accounting and ⁠marketing capabilities into Claude and ChatGPT.

Bloomberg data shows Intuit's total workforce was around 18,200 in mid-2025. If those figures are still accurate, the layoffs could affect upwards of 3,000 employees.

As of Tuesday's close, Intuit shares were down nearly 40% on the year amid AI fears disrupting the software stocks.

Shares are down 2% in premarket trading.

Analysts are mostly bullish…

Related:

• Meta Axes 8,000 Workers As Zuckerberg Admits AI Is Watching, Replacing Labor

The last day for impacted staff at Intuit in the United States will be July 31 and they will receive 16 weeks of base pay and two extra weeks for every year at Intuit as part of ​the severance package, the ​memo on Wednesday ⁠showed.

Tyler Durden Wed, 05/20/2026 - 09:35

Trump Retains Dominant Influence: 4 Takeaways From Tuesday's Primary Elections

Authored by Joseph Lord, Jeff Louderback, Troy Myers, and Nathan Worcester via The Epoch Times,

Voters on Tuesday headed to the polls in states across the country for some of the most-anticipated battles of the 2026 midterm election season.

May 19 marks the largest day of primary elections yet, seeing ballots cast across six states: Alabama, Georgia, Idaho, Kentucky, Oregon, and Pennsylvania.

The night continued past trends showing that President Donald Trump retains a dominant influence over the Republican Party, as his chosen candidates sailed to victory in race after race—with one Republican incumbent in a major race being defeated.

Democrats, meanwhile, locked in their picks for several key congressional races, as the party works to reclaim the House and possibly the Senate.

Here are the biggest takeaways from the night.

Massie Unseated

Rep. Thomas Massie (R-Ky.) lost his Republican primary to former Navy SEAL Ed Gallrein, concluding one of the most-watched (and most expensive) primary battles of the 2026 election cycle.

President Donald Trump had endorsed Gallrein as part of his effort to get Massie removed from Congress.

Trump was openly critical of Massie and urged people in Kentucky’s Fourth Congressional District to elect Gallrein.

Gallrein had tallied 54 percent of the votes compared to 45 percent for Massie when The Associated Press called the race at 7:54 p.m. ET.

Massie’s ousting is seen as underscoring Republican voters’ support for Trump.

The Kentucky lawmaker, who’s been at odds with Trump over several issues, joins Sen. Bill Cassidy (R-La.) and several Indiana state senators who were defeated by primary challengers backed by Trump in recent weeks.

Gallrein, in his victory speech, vowed to work closely with the president in Congress.

“We have a saying on the family farm that it’s a contact sport,” Gallrein said at an election night event in Covington, Kentucky. “I can tell you that campaigning is one as well, folks.”

Kentucky, Alabama Open Senate Primaries

In Kentucky and Alabama, voters went to the polls to cast ballots in open Senate primaries for seats being vacated by their incumbents.

Rep. Andy Barr (R-Ky.) will face former Democratic state Rep. Charles Booker in the race to replace outgoing Sen. Mitch McConnell (R-Ky.) in the U.S. Senate.

The Associated Press called the Republican primary race for Barr at 7 p.m. ET, an hour after polls closed. Barr won with 60.5 percent of the vote to 30.8 percent for the next closest rival, former Kentucky Attorney General Daniel Cameron.

On the Democratic side, Booker—who previously served as Democrat’s nominee for the post in 2022—won with 46.8 percent of the vote. His closest rival, 2020 Democratic nominee Amy McGrath, trails with 35.8 percent of the vote. The race was called at 9:41 p.m. ET.

The primary marks the first time in 16 years that the state has seen a fully open race for a Kentucky Senate seat. The last such primary took place in 2010, when Sen. Rand Paul (R-Ky.) won his first election to Congress.

McConnell, 84, was first elected to his seat in 1984. He had served as the leader of the Republican Senate conference since January 2007 before agreeing to step down at the start of the current Congress.

Meanwhile, Rep. Barry Moore (R-Ala.), Trump’s pick to replace outgoing Sen. Tommy Tuberville (R-Ala.), will advance to a runoff, as he fell short of the 50 percent needed to forgo the second election.

The Republican he’ll face is still being determined as votes are counted.

Trump has called Moore “a true America First Patriot who’s been with me from the very beginning.”

Georgia Republican Races Go to Runoff

Voters in the Peach State sent Republican candidates in Georgia’s gubernatorial and Senate elections to a runoff.

Trump-endorsed Georgia Lt. Gov. Burt Jones and billionaire businessman Rick Jackson will go to a runoff in Georgia’s gubernatorial primary contest.

Jones and Jackson received 37 percent and 34 percent of the vote, respectively, when the Associated Press called the runoff at 8:50 p.m. ET, as neither managed to garner more than 50 percent of the vote in what became a costly contest for the GOP field.

Georgia’s Secretary of State Brad Raffensperger came in third with 14 percent of the vote.

Another competitive Georgia Republican contest is also on its way to a second round.

As of 9:50 p.m. ET on May 19, none of the major candidates in the state’s Senate GOP primary—Rep. Mike Collins (R-Ga.), Rep. Earl “Buddy” Carter (R-Ga.), and former football coach Derek Dooley—had claimed more than 50 percent of the vote in the Senate primary.

At 9:44 p.m. ET, the Associated Press declared that Collins will advance to the runoff. It later declared that Dooley will face him in that race.

As of 11:52 p.m., Collins had received 40.5 percent of the vote. Dooley followed with 30.1 percent, while Carter trailed in third with 25.2 percent.

The runoff was expected ahead of Election Day, as polling generally did not show any candidate with a majority.

Bernadette Breslin, the national press secretary for the National Republican Senatorial Committee (NRSC), told The Epoch Times in an exclusive statement that “Republicans are united behind defeating Ossoff and retiring his record of failure for Georgia.”

Trump has not given an endorsement in the Senate race.

The runoff elections are set for June 16.

Pennsylvania Democrats Make Picks in Key Swing Districts

While observers’ focus was largely centered on Republican races during this round of voting, Democratic candidates were also locked in for several key swing districts during the May 19 elections.

It’s unclear whether Democrats can overcome Republicans’ steep 53-seat majority in the U.S. Senate, and the party is instead focusing its major efforts this cycle on the House, where Democrats are widely expected to reclaim the majority by observers.

In Pennsylvania, three Democratic candidates endorsed by Gov. Josh Shapiro won their elections, including Janelle Stelson, Bob Harvie, and Bob Brooks.

The three candidates will take on Republican opponents in the November general election, in seats that include some of the party’s top targets.

Stelson will go up against Rep. Scott Perry (R-Pa.), Harvie against Rep. Brian Fitzpatrick (R-Pa.), and Brooks against Rep. Ryan Mackenzie (R-Pa.).

Shapiro himself is seeking reelection this year, running for the gubernatorial nomination unopposed. Shapiro’s approach to politics has been viewed as moderate by voters in the state, propelling him to a sweeping double-digit victory in his 2022 election, giving his endorsement some weight in state politics.

Tyler Durden Wed, 05/20/2026 - 09:05

NANO Nuclear's Reactor Construction Permit Accepted For Review

The Nuclear Regulatory Commission (NRC) has formally begun its review of the construction permit application for an advanced microreactor at the University of Illinois Urbana-Champaign. 

✅ #NRCNews: We've kicked off the formal review of the @UofIllinois application for an advanced microreactor. https://t.co/0gMFCuDv5u

— NRC (@NRCgov) May 19, 2026

The announcement marks the transition from the agency’s acceptance review to the substantive technical evaluation of NANO Nuclear’s KRONOS design.

This step carries more weight than the initial filing. Submitting an application demonstrates readiness on paper; the NRC’s decision to open a full review confirms the submission meets the threshold for detailed scrutiny. 

For a first-of-a-kind microreactor project, clearing that gate is a concrete regulatory advance.

We've tracked the Illinois project closely, including the construction permit application submission itself, described at the time as a defining moment for commercial microreactor deployment. Earlier coverage in October 2025 detailed the start of drilling and site preparation work with the university. 

We've also detailed other updates from the company including their recent MOU with Supermicro and progress with their high-assay low enriched uranium (HALEU) transportation package.

The KRONOS effort is also not occurring in isolation. Other advanced reactor programs have recorded measurable NRC milestones in recent months with TerraPower’s Natrium reactor in Wyoming receiving its construction permit and X-energy achieving a notable environmental clearance for its four-unit Xe-100 project at Dow’s Seadrift site in Texas.
 

Tyler Durden Wed, 05/20/2026 - 08:35

Trump's IRS Settlement Bars Tax Audits Of Trump & Family

Authored by Tom Ozimek via The Epoch Times,

The acting head of the U.S. Department of Justice said on May 19 that the agency added new terms favorable to President Donald Trump to the settlement of the president’s lawsuit over alleged IRS leaking of his tax returns.

In a one-page addendum to the settlement, Acting U.S. Attorney General Todd Blanche said on May 19 that the IRS would no longer pursue claims against Trump, members of his family, or his businesses over allegedly unpaid taxes.

The May 18 settlement, in which the president agreed to drop a $10 billion lawsuit against the IRS, provided that an almost $1.8 billion Anti-Weaponization Fund would be established to compensate alleged victims of the weaponization of law enforcement.

Trump, two of his sons, and the Trump family business, had sued in federal court in Florida in January, alleging that the IRS and its parent agency, the U.S. Department of the Treasury, had failed to prevent a former contractor from leaking Trump’s tax returns to the media.

The plaintiffs alleged the agencies failed to take mandatory precautions to prevent the former IRS contractor from unlawfully obtaining access to their confidential tax records and giving that information to The New York Times and ProPublica between 2019 and 2020.

As part of the settlement, the plaintiffs themselves will receive “a formal apology but no monetary payment or damages of any kind,” the DOJ said in a May 18 statement.

The plaintiffs agreed to drop their claims “in exchange for the creation of this fund,” and in addition they agreed to withdraw two administrative claims they filed for damages “resulting from the unlawful raid of Mar-a-Lago and the Russia-collusion hoax.”

“The machinery of government should never be weaponized against any American, and it is this Department’s intention to make right the wrongs that were previously done while ensuring this never happens again,” Blanche said in the statement.

“As part of this settlement, we are setting up a lawful process for victims of lawfare and weaponization to be heard and seek redress,” he said.

The May 19 release states that the federal government is “forever barred and precluded” from moving forward with “examinations” of Trump, “related or affiliated individuals,” and related companies and trusts. The document covers “tax returns filed before the effective date” of the settlement, which was May 18.

The settlement provides that the Anti-Weaponization Fund will be controlled by five individuals whose appointment will be announced by the attorney general within 30 days.

One of the fund’s members will be selected in consultation with congressional leadership.

The members are to serve until the fund is “concluded,” unless they resign or are removed by the president, who will be allowed to dismiss any member without providing a reason, according to the settlement.

The fund will establish its own rules for “submitting, receiving, processing, and granting or denying claims,” subject to procedures it may make public at its own discretion.

The settlement states that the fund will have the authority “to issue formal apologies, issue monetary relief owed to claimants as a result of their legal rights, grant claims in whole or in part, deny claims in whole or in part, defer review of claims, and receive and request evidence or other support for claims, including requesting information from, or consulting with, federal agencies.”

During congressional testimony on May 19, Blanche told lawmakers that those who experienced “weaponization” may receive payments. He declined to promise that the fund would refrain from making payments to Trump campaign donors or individuals involved in the Jan. 6, 2021, security breach at the U.S. Capitol.

Blanche said Trump did not set up the settlement fund and the members of the fund will act independently.

“The president did not direct me to do anything,” he said, adding that payments could go to members of any political party, and would not be limited to Jan. 6 defendants.

Critics in Congress moved swiftly to condemn the addendum. Oregon Sen. Ron Wyden, the top Democrat on the Senate Finance Committee, argued that the settlement clause runs afoul of a statute that makes it unlawful for executive branch officials to direct the IRS to open or close an audit targeting any individual taxpayer. Under the statute, coverage extends to the president and vice president, their respective office staffs, and cabinet-level officials — though the attorney general is specifically carved out of the definition. Wyden closed his statement with a direct warning, according to CNBC, saying neither the president nor his chosen legal counsel could place his relatives beyond legal accountability.

On the House side, Ways and Means ranking member Richard Neal posted to social media labeling the addendum outright "corruption," charging that Trump had converted the executive branch into a shield for his own finances, according to CNN.

Sen. Patty Murray (D-Wash.) was critical of the fledgling fund and how it will be administered.

“What we’re talking about is nothing short of the sitting president of the United States looting from the Treasury for his own gain,” she said.

“Do you seriously think this arrangement is appropriate?” Murray added.

Defending the clause to CNBC, a department spokeswoman framed it as routine legal practice. "As is customary in settlements, both sides have executed waivers of a variety of claims that were or could have been brought," she wrote in an email, adding that the restriction applied only to audits already open at the time of signing and would not prevent future IRS scrutiny.

Tyler Durden Wed, 05/20/2026 - 08:20

Meta Axes 8,000 Workers As Zuckerberg Admits AI Is Watching, Replacing Labor

Welcome to another day of corporate America hemorrhaging engineers and other white-collar workers with insurmountable student debt as AI adoption accelerates. This era will likely be remembered in history as the great "white-collar purge," and the response will be continued hatred of data centers.

We've been covering for weeks that today is D-Day for Meta Platforms employees, who have finally learned their employment fate at the company that owns Facebook and Instagram.

Bloomberg reports that the new round of layoffs affects roughly 8,000 roles globally, with engineering and product teams expected to be at the center of the cuts as CEO Mark Zuckerberg reduces labor in favor of GPUs.

This latest round of cuts is expected to hit Meta's engineering and product teams in particular, and additional layoffs could come later in the year, said people familiar with the company's plans, who asked not to be named as the information is not public. -BBG

The layoffs follow Meta's reassignment of about 7,000 employees into newly created AI-focused teams on Monday.

The X account, Official Layoff, posted leaked audio of an all-hands emergency at Meta earlier this week, in which Zuck told employees their devices are being tracked to train AI models. In other words, those workers are training chatbots to eventually render them obsolete.

Official Layoff added more color about Monday's meeting:

LEAKED AUDIO FROM META ALL-HANDS AHEAD OF LAYOFFS TOMORROW

Mark Zuckerberg, in his own words, told Meta employees their devices are being tracked to train AI models.

His reasoning? Meta employees are smarter than the contract workers the rest of the industry uses for data labeling. So instead of hiring outside help, Meta is turning its own workforce into training data.

"The average intelligence of the people who are at this company is significantly higher than the average set of people that you can get to do tasks if you're working through these contractors."

He wants the AI to learn how "really smart people use computers" by watching employees work. He says the content is "stripped out" and none of it is used for surveillance or performance tracking.

Then he admitted the rollout was botched but said Meta intentionally kept employees in the dark because leaking competitive AI strategy would help rivals.

"It is not strategically in your interest for us to communicate everything in all the detail that we normally would on this."

Translation: We're watching you, we told you as little as possible, and we did it on purpose.

AI is replacing the contractor. Then the employee trains the AI. Then the AI replaces the employee.

This story and this company keeps getting weirder.

LEAKED AUDIO FROM META ALL-HANDS AHEAD OF LAYOFFS TOMORROW

Mark Zuckerberg, in his own words, told Meta employees their devices are being tracked to train AI models.

His reasoning? Meta employees are smarter than the contract workers the rest of the industry uses for data… https://t.co/VSPdjHZ2ga pic.twitter.com/3TX0vLP8P3

— Official Layoff (@LayoffAI) May 19, 2026

Related coverage:

• D-Day For "Huuuge" Meta Layoffs Looms As AI Job Apocalypse Accelerates

• Meta Plans 20% Layoffs To Divert Capital To Data Centers

• Meta To Unleash First Wave Of Mass Layoffs May 20 As It Eliminates 10% Of Its Workers

Meta Workforce ... 

Goldman laid out in 2023 just how many jobs AI will take. That number is absolutely scary for white-collar America, where many are saturated with student debt.

Tyler Durden Wed, 05/20/2026 - 08:05

Futures Rise Ahead Of Critical Nvidia Earnings As Oil, Bond Yields Drop

US equity futures are higher led by tech as the selloff in bonds eased and traders awaited earnings from Nvidia after the close. As of 7:30am ET, S&P futures are up 0.3% while Nasdaq futs rose 0.7% showing optimism heading into the release and overlooking weakness in tech during APAC trade. In premarket trading, NVDA is up 1.8% in premarket trading, as semis see a strong bid with Mag7 names almost all higher. Cyclicals ex-Energy are rallying led by Industrials with Defensives lagging and Staples down. European stocks have edged higher alongside a pullback in energy prices, which saw Brent briefly slip onto a $108/bbl handle. Today is all about NVDA but Fed Minutes this afternoon may provide color on the dissenters from the previous Fed Day. Bond yields in the US and Europe retreated from multiyear highs as traders pared back aggressive bets on interest-rate hikes this year. US yields are 1-3bp lower across the curve, the 10Y dropping to 4.64% from yesterday's high of 4.69%, as the USD sees a mild bid. Brent fell 1.8% toward $109 a barrel with the broader energy complex drops as JPM flags 6.6mm bbls of oil crossing the SoH over the last 24 hours; Precious Metals are also bid with Ags seeing weakness. Tomorrow’s macro releases include Flash PMIs and jobless data.  

In premarket trading, Nvidia is outperforming fellow Magnificent Seven stocks, rising 1.8%, ahead of its much-anticipated first-quarter results report after the market closes. Fellow chip stocks are also gaining (Tesla +1%, Alphabet +0.3%, Amazon +0.2%, Meta Platforms +0.2%, Apple -0.2%, Microsoft -0.4%)

• 8x8 (EGHT) jumps 17% after the software company reported fourth-quarter results that beat expectations.
• Cava Group Inc. (CAVA) is up 7.1%. The company raised its annual sales outlook after diners flocked to its restaurants in the first quarter, defying the crunch in consumer budgets that has weighed on the industry.
• Keysight Technologies (KEYS) is up 2.3% after the measurement instruments company reported second-quarter results that beat expectations and gave a third-quarter forecast that is above the analyst consensus.
• Toll Brothers (TOL) rises 2.3% after the luxury homebuilder reported second-quarter profit that beat analysts’ estimates and raised its full-year guidance.

In other corporate news, Goldman Sachs is said to have the leading role on the cover of SpaceX’s IPO, with Morgan Stanley also listed as a lead bank. SpaceX expects to proceed with its acquisition of Cursor 30 days after the company begins trading publicly, and if the deal doesn’t go through, SpaceX would pay Cursor a $10 billion breakup fee in cash, BBG reported. Early AI tools are boosting productivity as much as 30%, said JPMorgan, while Standard Chartered’s CEO has sought to reassure staff after a backlash to his remarks on using artificial intelligence to replace “lower-value human capital.” Softbank’s $60 billion bet on OpenAI, and growing unease over Masayoshi Son’s devotion to Sam Altman is today’s The Big Take. 

Futures are higher in early trading as investors digest a backdrop of surging rates volatility, heavily crowded semis exposure and euphoric - and outright manic bubble in the case of Korea - positioning, while some of the most aggressive AI momentum trades globally show signs of strain, even as stocks broadly ignore the historic rout taking place in the bond market, sending 30Y yields to 19 year highs.

A potential strike at Samsung and the words of Jensen Huang are two catalysts in the next 24 hours to keep traders on edge. 

The impending strike at Samsung could add to concerns around supply being able to meet burgeoning demand for AI memory chips in the face of already surging memory prices, at a time inflation is coming for the overcrowded AI trade. 

Nvidia will give a much-anticipated update on the state of the AI economy when it reports after the close. While sales are estimated to have grown 80%, investors will be more focused on what Nvidia has to say about ramping up production and fending off competitors.
Options traders are pricing an implied move of about 5.5% for Nvidia shares in either direction following the results. With the report coming at a time when the roaring rally in chipmakers is coming off the boil, well-received earnings could give the sector fresh momentum and help drive global indexes even higher into superbubble territory.

“The semiconductor rally has stalled, but really is just in a holding pattern until Nvidia reports,” said Joachim Klement, head of strategy at Panmure Liberum. “Nvidia can, for now, keep its beat-and-raise machine going, which will reignite the rally in semiconductors.”

Today we also get the minutes of the April 28–29 FOMC meeting which should show that support for removing the easing bias from the statement extended beyond the three dissenters. The minutes should reinforce the market view that the easing cycle is on an extended hold​​​​​​​​​​​​​​​, according to Bloomberg Economics. Fed’s Paulson said she favored holding interest rates steady and conditioned lower borrowing costs on making sustained progress on inflation.

President Donald Trump threatened to resume strikes on Iran in the coming days as part of the push for a deal to end the war, after he said he had just called off a US attack. Alexandre Drabowicz, chief investment officer at Indosuez Wealth Management, said he wouldn’t be surprised if Trump’s next steps take into account where interest rates are headed, given the current yield levels. “We’re in the thick of the danger zone,” he said.

“Stagflation risk has gone up significantly,” said Justin Onuekwusi, chief investment officer at St. James’s Place. “When we’re talking about increased inflation and falling growth, in that environment, most asset classes will struggle, including bonds.”

In politics, the Republican-led US Senate signaled mounting opposition to continuing the Iran war in a procedural vote Tuesday, reflecting deepening political unease over a conflict that is taking a financial toll on Americans. Trump signed an executive order directing regulators to issue guidance on banking services to undocumented migrants, in a move that could tighten access to the financial system.

Retail is in focus before the market opens, with Target and TJX set to report. Visits to Target stores during the first quarter were up 5.1% from the year prior, marking the chain’s first positive visit growth in more than a year, according to data from Placer.ai. The firm also notes traffic in April rose 5.5% from the previous year.

European stocks edge higher alongside a pullback in energy prices, which saw Brent briefly slip onto a $108/bbl handle. Stock market operator Euronext is among the biggest gainers, while credit checking firm Experian fell on its latest earnings. Here are the biggest movers Wednesday:

• Euronext shares gain 7.1%, most since July 2023, after the stock market operator reported what analysts say are strong 1Q earnings, driven by better revenues and costs, with the equity markets division as the main standout
• CSG shares rise as much as 12%, the most since January, after the defense company reported results analysts called strong, saying the market should be relieved after the recent selloff
• Marks & Spencer shares rise as much as 5.5% after the retailer reported a milder drop in adjusted pretax profit than anticipated during FY26, having grappled with a costly cyberattack during the year
• RS Group shares rise as much as 10%, the most since November 2024, after the distributor of electrical and industrial products announced a £100m share buyback and pointed to improving momentum across its major markets
• Playtech shares gain as much as 5.1% after the gaming software maker said it delivered an “excellent trading performance” over the first four months of the year, according to a statement ahead of its annual general meeting
• Ypsomed shares jump as much as 14%, the most since April 2025, after the Swiss maker of injection systems reported better-than-expected financial results and provided guidance that pleased investors
• Severn Trent shares rise as much as 4.9% after the UK water company reported earnings ahead of expectations in FY26 and upgraded its outlook for FY28; peer United Utilities is up 1.3%%, while smaller rival Pennon is trading 1% higher
• Experian shares drop for the first day in five, falling as much as 6%, as the credit checking company’s full-year guidance proves slightly lower than analysts expected
• Orkla falls as much as 8.9% after the Norwegian consumer goods group reported earnings which fell short of expectations. DNB Carnegie sees a “mixed” report, flagging an adjusted Ebit miss and increased margin pressure
• Rusta falls as much as 8.6%, the most since September, after SEB cut its recommendation on the Swedish retailer to hold from buy, saying the stock’s valuation discount has disappeared after a strong rally
• B&M falls as much as 3.9% as Goodbody cut its rating on the European budget retailer to hold from buy. The broker sees tepid earnings as the UK macroeconomic climate deteriorates and poor weather weighs on sales

Earlier in the session, Asian equities fell for a fourth straight session, heading for their longest losing streak in nearly two months as chip stocks dropped and bonds sold off on inflation concerns. The MSCI Asia Pacific Index declined as much as 1.3%, with Samsung and TSMC among the the biggest drags. Samsung shares slumped after its labor union said it will go on strike Thursday, a development that pushed the Korean benchmark Kospi lower. Most markets in the region were down, led by Kospi’s 3% decline. Concerns that the US-Iran war may stretch on have lifted global inflation expectations, pushing yields higher. The higher cost of capital may hinder the fast expansion of Asian stocks that have ridden artificial intelligence tailwinds to grow earnings. Stocks also fell in Japan, China, Hong Kong and Australia.

In FX, the greenback has given back some ground after dollar gains pushed EUR/USD to its lowest level since April 7. JPY remains rangebound amid the threat of intervention, with Yen fundamentals still bearish (Supplementary Budget/Energy). Demand at the overnight JGB auction was weak and saw some pressure in JGBs but no real follow-through to the FX space. USD/JPY is unchanged and testing 159.00 to the downside at the time of writing. GBP is a little weaker after soft April inflation data trimmed bets on BoE hikes. GBP/USD moved lower by c. 15pips post-data, now above pre-release levels as it attempts to regain a 1.34 handle. EUR/GBP moved higher by 10pips post-data, a move which swiftly pared amid resistance at 0.8670 and recent energy-related moves. (See 08:40 BST headline for more). EUR is also a touch weaker and seemingly moving lower in tandem with USD strength. EUR/USD -0.1%, the pair delved as low as 1.1583 before attempting to return back to a 1.16 handle, where it has traded throughout the week so far.

US Treasuries yields continue to test levels reminiscent of unnerving times. A sustained selloff in Asia and Europe on Tuesday continued through the US morning until a small relief bid emerged in the afternoon. Still, 30y yield ended the day hovering around 5.17% – the highest level since 2007. 10y yields have pushed past the 4.50% mark that has typically served as a reentry point from oversold territory and are inching closer to 4.75%. Global inflationary concerns, a Middle East crisis and a lack of conviction has led to a perfect storm of stop outs and compounding bearish momentum. The lack of thematic dip buying is likely summed up by sentiment that things look cheap but could look even cheaper. 2s5s10s – something the desk highlighted a few sessions ago – has dramatically cheapened 10bp over the past few days. Wednesday's 20y auction will be a key gauge on the market’s appetite for long-end duration at these levels. The elevated rate environment is bad news for risk assets in a world where debt-fueled capex is high, and this US administration has used tools to indirectly affect dip buying in duration before

This morning treasuries hold gains amid a bigger curve-steepening rally in gilts after UK inflation gauge slowed more than economists estimated. US yields are 2bp-3bp lower on the day, with 5s30s curve steeper by more than 1bp; 10-year is down 2.7bp near session low 4.64%, with UK 10-year lower by more than 8bp, Germany’s by more than 3bp. UK front-end yields remain around 10bp richer on the day heading into the US session, which includes a 20-year bond auction poised to draw the highest yield since October 2023. July WTI crude oil futures, down around 2.5%, also support Treasuries. UK yields are 7bp to 10bp lower on the day with 2s10s and 5s30s curves steeper by about 1.5bp; following the UK inflation data, swaps-implied chance of a BOE rate hike in June ebbed to less than 20%, compared with about 50% at one point last week

Treasury auctions resume with $16 billion 20-year new issue at 1pm New York time. WI 20-year yield near 5.17% is ~29bp cheaper than last month’s auction; a $19 billion 10-year TIPS reopening is ahead Thursday.  IG dollar issuance slate includes a couple of offerings. Twelve borrowers raised almost $15 billion on Tuesday with issuers paying, on average, 4.8bp in new issue concessions on deals that were 3.9 times covered

Economic data slate empty for the session. Fed speaker slate includes Barr (9:15am), and minutes of FOMC’s April 28-29 meeting are slated for 2pm release

Market Snapshot

• S&P 500 mini +0.2%
• Nasdaq 100 mini +0.5%
• Russell 2000 mini +0.2%
• Stoxx Europe 600 +0.2%
• DAX +0.2%
• CAC 40 +0.3%
• 10-year Treasury yield -3 basis points at 4.64%
• VIX little changed at 18.03
• Bloomberg Dollar Index little changed at 1204.72
• euro -0.1% at $1.1591
• WTI crude -1.5% at $102.59/barrel

Top overnight news

• The Trump administration is planning to tell NATO allies this week that it will shrink the pool of military capabilities that the U.S. would have available ‌to assist the alliance's European nations in a major crisis, three sources familiar with the matter said. BBG
• Two giant Chinese tankers laden with around 4 million barrels of oil exited the strait on Wednesday, the latest signal that Iran is willing to ease its blockade for countries it considers friendly. Iran had announced last week, while Trump was in Beijing for a summit, that it had reached an agreement to ease rules for Chinese ships. RTRS
• India is preparing to send vessels through the Strait of Hormuz to load energy cargoes from Middle East suppliers, the first time since the Iran conflict began. BBG
• Xi Jinping called for “a comprehensive ceasefire” in the Middle East as he opened talks with Vladimir Putin in Beijing. BBG
• US President Trump signed a fintech Executive Order to protect the US financial system from illicit activity, while it was reported that the White House plans to release an Executive Order on cybersecurity and AI safety as soon as this week, which seeks early government access to advanced models.
• Indonesia’s central bank snapped a long-running pause as it delivered its first rate hike in over two years to guard against inflation and steady the rupiah. Bank Indonesia on Wednesday raised its benchmark seven-day reverse repo rate by 50 basis points to 5.25%, coming off the sidelines after holding steady since it eased policy settings in September last year. The move surprised markets. WSJ
• British inflation cooled by more than expected in April but the slowdown did little to mask ‌a tough outlook for households, with global costs from the Iran war set to hit them harder later this year. Consumer prices rose by an annual 2.8%, down from March's annual inflation rate of 3.3%, official data showed, helped by smaller increases in household energy and other regulated utility bills than in April 2025, and by measures to lower energy bills introduced by finance minister Rachel Reeves. RTRS
• The EU finalized the text of its long-delayed US trade deal after months of negotiations, clearing a major hurdle to ratifying the pact before President Donald Trump’s threatened deadline to impose higher tariffs. The EU agreed to scrap tariffs on US industrial goods in exchange for a 15% cap on EU export levies. BBG
• Japan’s 20-year bond auction drew strong demand, helping calm a recent selloff in longer-dated JGBs. PM Sanae Takaichi said an extra budget would avoid large bond sales. BBG
• China banned Nvidia’s US export-friendly RTX 5090D V2 gaming chip last Friday. FT

A more detailed look at global markets courtesy of Newsquawk

APAC stocks declined following the weak handover from the US, with sentiment dampened amid headwinds from a higher yield environment and the uncertain geopolitical backdrop. ASX 200 retreated with the declines led by underperformance in the mining and materials sectors, while a lack of data and firmer yields contributed to the uninspired mood. Nikkei 225 fell beneath the 60,000 level with notable pressure in machine tool and electrical equipment manufacturers, while recent comments from Japan's Finance Minister, and current FX levels were seen to stoke intervention risks. Hang Seng and Shanghai Comp conformed to the downbeat sentiment amid bond and inflation woes, with the declines in Hong Kong led by mining, solar and property stocks, while there was a lack of surprises from the PBoC announcement to maintain the benchmark Loan Prime Rates for the 12th consecutive month.

Top Asian News

• Chinese President Xi met Russian President Putin in Beijing and said that relations have reached their current level due to deepened political mutual trust and strategic cooperation, while Putin said ties between Russia and China support broader international stability. Furthermore, China and Russia plan to deepen continuous strategic coordination, and Putin invited Chinese President Xi Jinping to travel to Russia next year, while Xi told Putin that the world faces the risk of regressing into a “law of the jungle.”
• Japanese PM Takaichi said she is not currently at a stage where she can comment on the possible size of the extra budget. She further said that plans to protect people’s lives and businesses while curbing issuance of deficit-financing bonds as much as possible.

European bourses (STOXX 600 +0.2%) were initially incrementally lower, but now display a more positive picture. On the trade front, the EU finalised the text of its US trade deal, in which the bloc would remove levies on US industrial goods in exchange for a 15% tariff ceiling on EU exports. Next steps are for the Parliament and EU countries to vote to ratify the text. The AEX (+0.4%) hovers around the U/C mark, with chip majors ASML (+3.2%) and BESI (+2.3%) supporting the index, while the FTSE 100 (-0.1%) sees little support following the cooler-than-expected UK inflation print. European sectors trade mixed. Basic Resources tops the sector pile as it manages to claw back some of Tuesday’s losses. Energy and Technology round out the top three sectors. To the downside, Media, Retail and Food, Beverages & Tobacco underperforms. UK supermarkets (Tesco -1.6%, Sainsburys -1.4%) have came under pressure after reports by the FT stated that the UK Treasury is pushing large supermarkets to introduce voluntary price caps on key groceries in return for lifting some regulations.

Top European News

• UK Inflation Rate MoM (Apr) M/M 0.7% vs. Exp. 0.9% (Prev. 0.7%, Low. 0.8%, High. 1.3%).
• UK Inflation Rate YoY (Apr) Y/Y 2.8% vs. Exp. 3% (Prev. 3.3%, Low. 2.8%, High. 3.4%); Services 3.2% (prev. 4.5%). ONS: "There was a notable fall in annual inflation led by lower electricity and gas prices. This was due to the government’s energy bill support package reducing variable and fixed tariffs, along with lower global wholesale energy prices before the conflict in the Middle East, which fed through to the reduction in the Ofgem cap."
• UK Core Inflation Rate MoM (Apr) M/M 0.7% (Prev. 0.4%).
• UK Core Inflation Rate YoY (Apr) Y/Y 2.5% vs. Exp. 2.6% (Prev. 3.1%, Low. 2.5%, High. 3.2%).

FX

• USD continues driving higher amid the continued unconstructive oil/yield environment with oil either side of USD 110/bbl and yields still elevated, albeit lower on the day. US/Iran news overnight was light, and nothing pertinent this morning, but the running commentary remains hostile. The Buck will remain attentive to Gulf developments, alongside expected hawkish FOMC minutes this evening, and NVIDIA earnings after the US close. DXY +0.1%, is now above all significant DMAs, with the 50DMA closest at 99.00.
• JPY remains rangebound amid the threat of intervention, with Yen fundamentals still bearish (Supplementary Budget/Energy). Demand at the overnight JGB auction was weak and saw some pressure in JGBs but no real follow-through to the FX space. USD/JPY is unchanged and testing 159.00 to the downside at the time of writing.
• GBP is a little weaker after soft April inflation data trimmed bets on BoE hikes. GBP/USD moved lower by c. 15pips post-data, now above pre-release levels as it attempts to regain a 1.34 handle. EUR/GBP moved higher by 10pips post-data, a move which swiftly pared amid resistance at 0.8670 and recent energy-related moves. (See 08:40 BST headline for more). EUR is also a touch weaker and seemingly moving lower in tandem with USD strength. EUR/USD -0.1%, the pair delved as low as 1.1583 before attempting to return back to a 1.16 handle, where it has traded throughout the week so far.

Central Banks

• Fed's Paulson (2026 voter) said inflation remains too high and interest rate cuts may only happen after inflation is controlled, while he also commented that current policy is appropriate and it is healthy for markets to consider an extended hold or hikes. Paulson stated the US labour market is stable and consumption is slowing, but is resilient, and a rate hike may be considered if growth moves above potential or other inflation risks emerge. Furthermore, he reiterated that he did not see a need to change language at the last policy meeting, as well as noted that risks are 'super-elevated' right now to both inflation and the outlook.
• ECB's Wunsch said the bond selloff is not impacting the ECB's thinking of Iran and that the ECB will need to react at some point.
• JPMorgan expects the BoE to hike 25bps in July (prev. forecast of hike in June).

Fixed Income

• Global fixed benchmarks are firmer this morning, attempting to rebound from recent losses as energy prices pull back this morning. UK benchmarks outperform thanks to a cooler-than-expected regional inflation report, which has reduced the chance of a hike in June.
• USTs are firmer by a handful of ticks and trades towards the upper end of a 108-19+ to 108-30+ range. Focus remains on the geopolitical environment, with a recent WSJ report suggesting that Iran's position in talks with the US to end the war hasn't changed much from earlier iterations that failed to yield progress towards a deal. Earlier today, the IRGC provided some punchy rhetoric after it stated that the war would extend “beyond the region” if Iran is attacked again. Ultimately, an environment which keeps energy-related inflation woes at the front of minds, allowing yields to remain at elevated levels. On that front, the US10yr is just off recent highs, residing at 4.65%; the US-30yr (5.17%) remains towards peaks, after it surged to levels not seen since 2007, in the prior session. Ahead, FOMC Minutes and a 20yr auction.
• Bunds are firmer by around 10 ticks, and hold within a 123.86 to 124.22 range. Earlier, German PPI M/M printed a touch above the expected (1.2% vs exp. 1%); the statistics office notes that it “is primarily due to higher prices for intermediate goods”, particularly in precious metals prices. The report also highlighted the continued surge in energy prices. There was little move in German paper following this report. On the central banking front, ECB’s Wunsch said that the bond sell-off is not impacting the ECB’s thinking of Iran, adding that the Bank will need to act at some point. Elsewhere, French President Macron nominated Emmanuel Moulin to head the Bank of France. He said at the Senate today that the ECB must be ready to act to combat inflation, and stressed the importance of an independent central bank. He now appears at the National Assembly, where the outcome of the votes for his nomination will be announced this afternoon.
• Gilts outperform vs peers, and are currently higher by around 45 ticks; UK paper holds at the upper end of an 86.07 to 86.54 range. From a yield perspective, unsurprisingly the UK curve is bull steepening; the 10yr is now eyeing the 5% mark to the downside, but will likely need some positive geopolitical updates for a decisive breach below the key level. Price action today follows a cooler than expected inflation report, where headline CPI slowed to 2.8% in April, from 3.3% in March and below consensus of 3.0%. This report spurred a dovish repricing at the BoE, with markets now assigning an 8% chance of a hike in June (vs 35% pre-release); July now 50% (vs 84% pre-release).
• Germany sells EUR 3.845 vs exp. EUR 5bln 2.90% 2036 Bund: b/c 1.5x (prev. 1.24x), average yield 3.16% (prev. 2.92%), retention 23.1% (prev. 23.66%).
• Japan sells JPY 525.8bln 20-year JGBs; b/c 4.01x (prev. 4.82), average yield 3.711% (prev. 3.327%).

Commodities

• WTI and Brent July futures have been edging lower throughout the European morning thus far, with newsflow relatively mixed. Out of Iran, one official noted that the region is open to negotiations whilst an IRGC member stated that the war will extend beyond the region, if Iran is hit again. Most recently, Saudi press citing a diplomatic source suggested that Iran-Pakistan cooperation had declined/stopped over the past two weeks.
• Nonetheless, crude futures remain heavy, with WTI in a USD 102.50-104.45/bbl range while its Brent counterpart resides in a USD 109.52-111.49/bbl range at the time of writing, with some weakness seen in the European morning despite a lack of clear catalysts, although the moves did follow comments from the Iranian Deputy to the President. Dutch TTF is flat in choppy trade above the EUR 51.50/MWh mark.
• Spot gold is choppy and resides in a relatively narrow USD 4,453-4,508/oz at the time of writing, vs yesterday’s USD 4,464-4,589.58/oz parameter, with the yellow metal subdued by the firmer dollar. Spot silver, conversely, rebounds following yesterday’s 5% losses.
• Base metals are mixed with newsflow on the quieter side this morning as markets await further US-Iran updates, with its implications watched from inflationary/growth standpoints. 3M LME copper resides in a narrow USD 13,357.00-13,506.00/t range at the time of writing.
• US Private Inventory Data (bbls): Crude -9.1mln (exp. -3.4mln), Distillates -1.0mln (exp. -1.3mln), Gasoline -5.8mln (exp. -2.1mln), Cushing -1.4mln.
• Russia's Kremlin said there is an agreement with China regarding something important on energy. Russia's Kremlin spokesperson Peskov later said the details on the Power of Siberia 2 pipeline still needs to be agreed.
• UK Treasury said Chancellor Reeves is expected to introduce broad reforms that would allow Parliament to authorise critical energy infrastructure projects.

Trade/Tariffs

• The EU has finalised the text of its US trade deal, as the bloc races to meet US President Trump's July 4th deadline. The deal would see the EU remove levies on US industrial goods in exchange for a 15% tariff ceiling on EU exports. EU's von der Leyen later said she welcomes agreement reached by the European Parliament and Council on reducing tariffs for US industrial exports to the EU, while she calls on the co-legislators to move swiftly and finalise the process on this.
• EU Trade Commissioner Sefcovic has reportedly been in contact with US Commerce Secretary Lutnick, US Treasury Secretary Bessent and USTR Greer.
• China's MOFCOM confirmed China will purchase 200 Boeing (BA) jets and said the US is expected to provide engines and parts support for the China Boeing deal. MOFCOM announced a resumption of poultry imports from certain US states and said China reinstated qualified US beef exporter registrations, while it stated the US and China are seeking to extend the Kuala Lumpur trade agreement.

Geopolitics: Iran

• US intelligence assessment recently showed that US forces identified at least 10 mines in the Strait of Hormuz, according to CBS citing US officials.
• US Senate voted 50-47 to advance war powers resolution that would end US strikes on Iran unless approved by Congress.
• Iran's IRGC said that if the attack on Iran occurs again, the war will extend beyond the region, Fars News reported.
• Iranian Deputy to the President Banah said Tehran is open to negotiations within national interests, Al Mayadeen reported.
• Iranian Foreign Minister Araghchi said months after the start of the war on Iran, US Congress acknowledged the loss of dozens of aircraft worth billions, and Iran's powerful Armed Forces are confirmed as the first to strike down a touted F-35, while he added that with lessons learned and the knowledge they gained, a return to war will feature many more surprises.
• Iran-Pakistan cooperation had declined/stopped over the past two weeks, Al Arabiya and Al Hadath reported citing a senior diplomatic source. A diplomatic source says Iran and Pakistan held conflicting positions on negotiation channels and the venue for talks, and says mistrust was affecting coordination between Iran and Pakistan.
• Pakistan's Interior Minister Naqvi is on route to Tehran, according to Journalist Mallick.
• "On the verge of a decision: Trump and Netanyahu held a phone conversation last night that was described as “lengthy and dramatic,” according to journalist Segal.
• Two Chinese supertankers, carrying 4mln barrels of oil, exited the Strait of Hormuz on Wednesday, according to tracking data. It was later reported that India was preparing to send oil tankers through the Strait of Hormuz following prior reports regarding the Chinese tankers.

Ukraine

• EU governments are discussing whether former ECB President Draghi or former German Chancellor Merkel could represent the bloc in potential negotiations with Russian President Putin, according to FT.
• Russian strike killed two in Ukraine's Dnipro and Ukraine reports multiple regional drone attacks, while Russia claims interception of 273 Ukrainian drones, according to AFP.
• Ukraine's military confirms it struck a Russian oil refinery in the region of Nizhny Novgorod.

Other

• Some Trump advisers reportedly left the US-China summit thinking that a Chinese move on Taiwan was growing more likely, Axios reported. The piece suggested that Taipei is not in panic, at least on the surface
• US President Trump said Cuba is a failed nation that needs help from the US, while he believes a diplomatic deal can be made, according to Semafor.
• US indictment of former Cuban president Raúl Castro is expected to be announced today, according to two federal sources familiar with the investigation cited by NBC News.

US Event Calendar

• 7:00 am: United States May 15 MBA Mortgage Applications, prior 1.7%
• 9:15 am: United States Fed’s Barr Speaks on Consumer Financial Health
• 2:00 pm: United States FOMC Meeting Minutes

DB's Jim Reid concludes the overnight wrap

As we await earnings from Nvidia, the largest company in the world, tonight, the global bond selloff showed no sign of easing yesterday, with yields at multi-year highs around the world. Long-end Japanese yields are rallying notably this morning though after a firm 20yr auction at historically high yields. Nevertheless front end yields everywhere have climbed over the last 24 hours. There hasn't been a single catalyst, but with Brent crude holding above $110/bbl and the Strait of Hormuz still blocked, investors moved to price a growing probability of imminent rate hikes. Indeed, the chance of a Fed rate hike in 2026 moved up to 81%, despite the easing bias in their last statement. And significantly, President Trump seemed open to Kevin Warsh proceeding how he wanted to, telling the Washington Examiner that “I’m going to let him do what he wants to do”.

If you're looking for positives it seems there are three oil tankers currently navigating the Strait this morning, two Chinese and one South Korean. Assuming they get through this would mark one of the busiest days since the closure. So one to watch.

Back to bonds and this upward pressure on yields was clear around the world yesterday, but it was US Treasury yields that saw the biggest jump, with new records across the curve. Most significantly, the 30yr yield (+5.8bps) hit a post-2007 high of 5.18%, whilst the 30yr real yield (+4.0bps) hit a post-2008 high of 2.86%. For shorter maturities, the records weren’t quite so big, but the 10yr yield (+7.9bps) still rose to 4.67%, the highest since January 2025. And with investors bringing forward their rate hike expectations, the 2yr yield (+7.4bps) also hit its highest since February 2025, at 4.12%. The worrying thing would be that with this base in yields formed, where would yields go if strikes resumed on Iran? It's not inconceivable that we'd return to the bond fears seen on April 9th 2025 a week or so after Liberation Day. That ultimately created the conditions for the US to pull back from the maxamalist tariff regime but the session that morning in Asia was pretty fraught.

The latest rise in nominal and real yields kept up the downward pressure on equities as well. In fact, the S&P 500 (-0.67%) fell for a 3rd consecutive session, which is the first time that’s happened since late-March, right before the index staged one of its fastest rebounds ever. Tech stocks led the declines, with the Magnificent 7 (-1.33%) dragging the index lower. But it wasn’t just the megacaps, as the hawkish repricing also meant the small-cap Russell 2000 (-1.01%) had a decent pullback with cyclical stocks seeing a broad underperformance.

Interestingly, yesterday’s rates move came despite pretty stable oil prices, which is noteworthy given how tight the correlation has been between Treasury yields and oil since the Iran conflict began. By the close, Brent crude (-0.73%) was down to $111.28/bbl, though that decline had come after Trump’s comments on Monday evening, with oil prices then creeping higher for most of yesterday’s session. Still, the stabilisation meant inflation expectations actually fell in many countries, and the rates repricing was driven by higher real rates instead. In particular, the 1yr US inflation swap (-1.9bps) fell to 3.37%, whilst the 1yr Euro inflation swap (-2.3bps) fell to 3.84%. The drift lower in Europe came even as natural gas prices recorded an eighth consecutive increase, with TTF gas rising +3.12% to EUR 51.82/MWh, its highest since early April.

In terms of the latest in the Middle East, Trump reiterated his recent threats yesterday, saying that “I hope we don’t have to do the war, but we may have to give them another big hit”. In terms of how long he’d wait, he then said “I’m saying two or three days, maybe Friday, Saturday, Sunday. Something maybe early next week — a limited period of time.” So the prospect of an escalation was still being floated. The mood also wasn’t helped by a Wall Street Journal report that mediators saw little progress in the US-Iran talks. By contrast, Vice President Vance suggested that talks had “made a lot of progress” though he also said “we're locked and loaded” to restart a military campaign against Iran if a deal did not materialise.

In the meantime, there was also a Bloomberg report that NATO was discussing the possibility of a deployment to help ships pass through the Strait of Hormuz. That came from a senior NATO official, who said it was being considered if the Strait isn’t reopened by early July. The article said the proposal had support from several NATO members, but not unanimous support.

Asian equity markets are mostly lower this morning with the KOSPI (-1.98%) the biggest underperformer after Samsung reversed its initial gains, declining by over -4% following the company's announcement that negotiations with the union have collapsed due to unresolved differences on several outstanding issues, leading to the decision to initiate a strike. Elsewhere, the Nikkei (-1.67%) and the S&P/ASX 200 (-1.36%) are also trading sharply lower with the Hang Seng (-0.55%), the CSI (-0.28%) and the Shanghai Composite (-0.66%) out-performing. S&P 500 (-0.18%) and NASDAQ 100 (-0.13%) futures are more stable but European stock futures are down nearly three quarters of a percent.

30yr JGBs have rallied around 10bps this morning after a decent 20yr auction but yields out to 10 years are slightly higher. UST yields are around a basis point lower out to 10yrs this morning.

In monetary policy action, the PBOC left benchmark lending rates unchanged for a 12th straight month as authorities balanced the need to support weak domestic demand against rising inflation risks linked to higher global energy prices. The central bank kept one-year loan prime rate (LPR) at 3.00% and the five-year LPR at 3.50%, in line with market expectations.

In Europe, bond yields also moved up to new highs yesterday. Indeed, the 10yr German yield (+4.4bps) hit to a post-2011 high of 3.19%, and the 30yr German yield (+2.8bps) also hit a post-2011 high of 3.70%. That came as investors dialled up the prospect of an ECB rate hike at the next meeting in June, with the probability up to 89% by the close. Bundesbank President Nagel also pointed in that direction, saying that “This energy supply shock is more persistent, so we are moving away from our baseline scenario”, and that the ECB may “have to do something”. But unlike the US, European equities still managed to post a modest gain, with the STOXX 600 (+0.19%) up for a second day running.

Here in the UK, gilts saw a relative outperformance after a dovish set of labour market data. Notably, the number of payrolled employees was down -100k in April (vs -10k expected), and the unemployment rate for the three months to March rose to 5.0% (vs. 4.9% expected). So that weakness meant investors dialled back the chance of rapid rate hikes from the Bank of England. Indeed, the probability of a hike by the June meeting fell to just 22%, the lowest it’s been in two months. And in turn, gilts outperformed their European counterparts, with the 10yr yield (+3.0bps) seeing a smaller increase to 5.13%.

Over in Canada, the latest CPI print also came in on the dovish side, which led investors to dial back the chance of an imminent rate hike. That showed headline CPI only rising to +2.8% in April (vs. +3.1% expected). Moreover, both of the core measures followed by the Bank of Canada actually fell, with median core down to +2.1% (vs. +2.3% expected), and trim core down to +2.0% (vs. +2.2% expected). So the probability of a rate hike by July fell to just 24%, and in turn that put downward pressure on Canada’s front-end yields. For instance, the 2yr yield (-2.1bps) fell to 3.03%, despite the global moves elsewhere.

On the data front, US pending home sales accelerated to +3.3% yoy in April (vs. +2.1% expected), their strongest annual pace since November 2024. Elsewhere, Eurozone trade data showed the block’s trade surplus falling to 9-month low in March amid higher oil prices and a rising deficit with China. Our European policy analysts discussed the EU push to increase trade defenses against China in a note yesterday (see here).

Looking at the day ahead, the main highlight will be Nvidia’s earnings after the US close. Meanwhile, data releases include the UK CPI print for April just after we go to press. Then from central banks, we’ll get the minutes from the FOMC’s April meeting, and also hear from the Fed’s Barr and the ECB’s Sleijpen.

Tyler Durden Wed, 05/20/2026 - 07:51

Massie Out: Gallrein Wins Kentucky Republican Primary

Update (2000ET):  In one of the most expensive primaries on record (with more than $32 million spent on political ads, according to the firm AdImpact), Former Navy SEAL Ed Gallrein has won the Republican primary in Kentucky’s 4th Congressional District over Rep. Thomas Massie, NBC News projects, notching another win for President Trump in his push to eliminate political rivals and roadblocks within his own party.

With 58% of the vote counted, Gallrein had about 54% to Massie’s 46%, DDHQ reported. 

Gallrein, 68, is a relative newcomer to politics. He ran a low-key campaign by refusing to debate Massie and generally avoiding the press. His chief selling points were his military service, his endorsement by Trump and his promise to be a reliable vote for the president’s policies.

Massie’s defeat follows other losses this month by Republican state lawmakers in Indiana who had resisted a Trump-backed congressional redistricting push. Five challengers endorsed by Trump defeated sitting state senators in their primaries.

Elsewhere: 

• Georgia: Early counts show Lt. Gov. Burt Jones (Trump-endorsed) and businessman Rick Jackson neck-and-neck in the GOP gubernatorial primary (likely runoff). On the Democratic side, Keisha Lance Bottoms leads strongly. In the GOP Senate primary to challenge Sen. Jon Ossoff, Rep. Mike Collins appears to be in the driver’s seat.
• Alabama, Oregon, Pennsylvania, Idaho: Mostly early returns or no major surprises yet. Expect incumbents or clear frontrunners (e.g., Tommy Tuberville in AL Gov, Christine Drazan in OR GOP Gov) to advance. Pennsylvania’s congressional primaries and other down-ballot races are developing but less nationally explosive so far.

So far tonight has demonstrated continued Trump influence in GOP primaries, particularly the high-stakes ousting of Massie after years of friction over spending, foreign policy, and party loyalty. The safely Republican nature of KY-04 means Gallrein is now heavily favored for November.

*  *  *

Today, voters in Georgia, Kentucky, Alabama, Oregon, Pennsylvania, and Idaho head to the polls for several primary elections that will affect key gubernatorial, House, Senate, and statewide contests ahead of the November midterms. 

The Epoch Times' Jackson Richman gives us the lay of the land (emphasis, charts, clips and any snark - ours...); 

Kentucky

There are a few competitive races in the Bluegrass State.

The most closely watched race is in the state’s Fourth Congressional District, where incumbent Rep. Thomas Massie (R-Ky.) faces retired Navy SEAL Ed Gallrein. President Donald Trump endorsed Gallrein after criticizing Massie over several votes he took in Congress. Trump has had success backing primary challengers and knocking off incumbents in several primary elections, including in Indiana and Louisiana.

The district includes the Kentucky suburbs of Cincinnati, part of northern Kentucky, and the outskirts of Louisville, consisting of coal towns and rural villages in the Appalachian foothills.

It has become the most expensive House primary in history.

Thomas Massie:

"Just in case I lose, they gave me the number to call to concede but the area code is Tel Aviv.” 😂 pic.twitter.com/5vmfh7ww0M

— GenXGirl (@GenXGirl1994) May 19, 2026

Federal Election Commission data, which include campaign ad spending and other costs, show that candidate campaigns and political parties have spent an estimated $35 million on the race, according to Quiver Quantitative. And according to AdImpact, more than $25 million has been spent on digital, radio, and television ads.

Massie’s campaign has spent $5.8 million, while Gallrein’s has dished out $2.6 million - and yet...

//--> //--> Will Thomas Massie be the Republican nominee for KY-04?
Yes 44% · No 56%
View full market & trade on Polymarket

In terms of outside spending, independent political groups have spent more than $10.1 million supporting Massie.

Massie’s campaign has said it has mainly relied on grassroots fundraising. He has received support from the Kentucky First PAC, backed by Pennsylvania billionaire and major TikTok investor Jeff Yass, which contributed $1 million in support, and the Make Liberty Win PAC, which poured in $518,205.

Super PACs have favored Gallrein, contributing more than $16.4 million in his support.

The Republican Jewish Coalition Victory Fund poured in another $470,000 of spending against Massie over the weekend, according to Quiver Quantitative.

Given the district’s strong Republican lean, the GOP nominee is expected to be favored in the general election.

Meanwhile, the race to succeed retiring Sen. Mitch McConnell (R-Ky.) is on as Rep. Andy Barr (R-Ky.), former Kentucky Attorney General Daniel Cameron, and nine other candidates run in the GOP primary. Trump has endorsed Barr.

Former state Rep. Charles Booker and Amy McGrath, who unsuccessfully ran for Senate in 2020, as well as five other candidates are running in the Democratic primary.

Polls project a Barr-Booker matchup.

Georgia

Georgia voters will cast ballots in high-profile primaries for governor, U.S. Senate, U.S. House, and several statewide offices.

The race to replace term-limited Gov. Brian Kemp, a Republican, has drawn crowded fields in both parties.

On the Republican side, candidates include Attorney General Chris Carr, Lt. Gov. Burt Jones, health care executive Rick Jackson, and Secretary of State Brad Raffensperger. Jones has secured an endorsement from Trump.

//--> //--> Will Burt Jones win the 2026 Georgia Governor Republican primary election?
Yes 60% · No 41%
View full market & trade on Polymarket

Democrats competing for the nomination include former Atlanta Mayor Keisha Lance Bottoms, former Lt. Gov. Geoff Duncan, former state Sen. Jason Esteves, and former DeKalb County CEO Mike Thurmond. Bottoms has received backing from former President Joe Biden.

Polls show Bottoms and Jackson leading their respective races.

Another closely watched contest is the Republican Senate primary to challenge incumbent Sen. Jon Ossoff (D-Ga.) in November. The field includes Reps. Buddy Carter and Mike Collins, along with former football coach Derek Dooley. Although Trump has stayed neutral in the race, Kemp has endorsed Dooley. Polls show Collins in the lead.

Alabama

Alabama voters will decide key primaries for governor, U.S. Senate, and Congress.

In the Republican gubernatorial primary, Sen. Tommy Tuberville (R-Ala.) faces insurance agent Ken McFeeters and event center operations manager Will Santivasci. Trump has endorsed Tuberville. The Democrats running are former Sen. Doug Jones (D-Ala.); former Greenville, Illinois, City Councilor Will Boyd; former state Rep. Nathan Mathis; and three other candidates.

The Republican Senate primary features Rep. Barry Moore (R-Ala.), Alabama Attorney General Steve Marshall, and four other candidates. Trump has endorsed Moore. The most recent polls show Moore leading. Democrats competing for the nomination include business owner Kyle Sweetser, pet care entrepreneur Dakarai Larriett, chemist Mark Wheeler II, and attorney Everett Wess.

Alabama’s redistricting process following a Supreme Court decision has also created an open race in the heavily Republican First Congressional District. Republican candidates include former Rep. Jerry Carl (R-Ala.), state Rep. Rhett Marques, and several other contenders. Clyde Jones is expected to secure the Democratic nomination.

Oregon

Oregon’s primary ballot includes races for governor, U.S. Senate, and Congress.

Gov. Tina Kotek, a Democrat, is seeking reelection as multiple challengers attempt to unseat her. Republicans vying for the nomination include Marion County Commissioner Danielle Bethell, state Rep. Ed Diehl, state Sen. Christine Drazan, and former Portland Trail Blazer Chris Dudley.

//--> //--> Will Christine Drazan win the 2026 Oregon Governor Republican primary election?
Yes 87% · No 13%
View full market & trade on Polymarket

In the Senate race, incumbent Sen. Jeff Merkley (D-Ore.) faces a Democratic primary challenge from retired electrical engineer Paul Wells. On the Republican side, candidates include former Senate nominee Jo Rae Perkins and state Sen. David Brock Smith.

Most of Oregon’s congressional races are expected to favor incumbents, but the Fifth Congressional District could emerge as a competitive general election battleground after Democrats reclaimed the seat in 2024. Republican candidates in the district include Deschutes County Commissioner Patti Adair and political communications consultant Jonathan Lockwood.

Pennsylvania

Pennsylvania’s marquee races include contests for governor and several competitive House districts.

The gubernatorial race is all but set with incumbent Gov. Josh Shapiro, a Democrat, facing Pennsylvania State Treasurer Stacy Garrity in November. There are no opponents to those candidates.

However, several congressional districts feature contested Democratic primaries.

In the state’s First Congressional District, the Democratic primary to take on incumbent Rep. Brian Fitzpatrick (R-Pa.) includes Bucks County Commission Chair Bob Harvie and mathematician Lucia Simonelli.

Pennsylvania’s Third Congressional District, in Philadelphia, features a Democratic primary to replace retiring Rep. Dwight Evans. The candidates include state Rep. Chris Rabb and state Sen. Sharif Street. Rabb has earned endorsements from progressive figures including Rep. Alexandria Ocasio-Cortez (D-N.Y.), while Street has the support of Sen. Cory Booker (D-N.J.).

//--> //--> Will Chris Rabb be the Democratic nominee for PA-03?
Yes 65% · No 36%
View full market & trade on Polymarket

The Democratic primary in the Seventh Congressional District includes Pennsylvania Professional Firefighters Association President Bob Brooks, former federal prosecutor Ryan Crosswell, former Northampton County Executive Lamont McClure, and Carol Obando-Derstine, a former member of the Pennsylvania Advisory Commission on Latino Affairs. Brooks has been endorsed by Shapiro and members of Congress such as Sen. Elizabeth Warren (D-Mass.). Rep. Ryan Mackenzie (R-Pa.) flipped the district from Democratic to Republican in 2024.

In the Eighth Congressional District, incumbent Republican Rep. Rob Bresnahan is expected to face Scranton Mayor Paige Cognetti in a competitive general election matchup.

The Democratic primary in the 10th Congressional District pits Dauphin County Commissioner Justin Douglas against former news anchor Janelle Stelson for the opportunity to challenge Republican Rep. Scott Perry. Stelson barely lost the 2024 race to Perry.

Idaho

Idaho voters will weigh in on Senate and gubernatorial primaries.

Incumbent Sen. Jim Risch (R-Idaho) faces three Republican challengers: data engineer Joe Evans, entrepreneur Denny LaVé, and engineer Josh Roy. Trump has endorsed Risch. The Democratic primary includes estate executive Nickolas Bonds, lifelong Democrat Brad Moore, and realtor David Roth, who unsuccessfully ran for Senate in 2022.

In the race for governor, incumbent Brad Little, a Republican, faces a primary challenge from seven candidates, while the Democratic primary includes small-business owner Jill Kirkham, former Twin Falls Director of Transportation Maxine Durand, attorney Terri Pickens, and Chanelle Torrez.

Jeff Louderback contributed to this report.

Tyler Durden Wed, 05/20/2026 - 07:11

A "Rubbish, Knee-Jerk Reaction": UK Treasury Pushes Food Price Caps As Inflation Re-Accelerates

UK supermarkets are being urged by the government to limit food prices in return for easing regulations.

As first reported by The Financial Times, the price caps are 'voluntary' and would apply to key groceries – such as eggs, bread, and milk - according to retail industry sources with knowledge of the plans.

In return, the government has said it would offer “incentives” to the supermarkets, which the people said could include easing packaging policies and potentially delaying costly changes to rules around healthy food.

As one may well expect, supermarkets are understood to be strongly opposed to the plans.

The Treasury has declined to comment.

The proposals come as Sir Keir Starmer’s government is battling to address public concern over the cost of living.

Scottish retailers recently condemned a similar policy by the Scottish National Party as a “1970s-style” gimmick.

One person close to a supermarket said the Treasury’s initiative was “a rubbish, knee-jerk reaction to the SNP”.

UK food inflation rose to 3.7 per cent in April, and the foreign secretary, Yvette Cooper, has warned the world is “sleepwalking into a global food crisis”, with the Middle East war throttling supply chains.

And in line with the magical thinking, the Treasury has also told supermarkets that it would like guarantees that British farmers would not lose income from shop price caps.

Former Brexit minister Lord Frost weighed in on social media platform X, calling the proposal "remarkable (and remarkably bad) if true.

"There are certainly plenty of people in this govt whose understanding of economics is so poor that they might consider it a good idea."

SNP leader John Swinney has defended his party's approach, arguing he faces a "public health responsibility" to ensure affordable nutrition for people "struggling to afford a very basic shop."

“It is a completely ill-thought-out, last-minute idea . . . The idea that the government can set price better than the market is for the birds,” one person familiar with the discussions told the FT.

Tyler Durden Wed, 05/20/2026 - 06:55