Zero Hedge

Supreme Court Rules Feds Can't Disarm You Just For Being A Regular Stoner

Supreme Court Rules Feds Can't Disarm You Just For Being A Regular Stoner

The Supreme Court on Thursday ruled that the government's prosecution of a Texas man under 18 U.S.C. §922(g)(3) - the provision barring "unlawful user[s] of" or those "addicted to" any controlled substance from possessing firearms - violated the Second Amendment.

The case, United States v. Hemani, stemmed from an August 2022 FBI search of the family home of Ali Danial Hemani, a dual U.S.-Pakistan citizen who was born in Texas and had a stable job as a project manager at a Dallas-area insurance company. The government suspected Hemani and his family members of activities related to terrorism. During the search, Hemani was cooperative: he surrendered a Glock 9mm pistol he kept in the house, pointed agents to marijuana on the property, and consented to an interview in which he admitted using marijuana about every other day. Agents also found cocaine in his parents' closet; Hemani claimed ownership but stated his mother had hidden it from him and that he had not used any recently.

More than six months later, the government indicted Hemani on a single count, relying solely on his admitted marijuana use and possession of the gun in his home. The indictment did not allege terrorism, drug trafficking, cocaine possession as a basis for the charge, or that Hemani was intoxicated or dangerous at the time he possessed the firearm. He faced up to 15 years in prison and lifetime disarmament.

Hemani fought it in court - arguing the prosecution violated the Second Amendment under the framework established in New York State Rifle & Pistol Association v. Bruen (2022). The district court agreed and dismissed the indictment; the Fifth Circuit affirmed. The government sought certiorari, which the Court granted.

The Court's Holding And Reasoning

Justice Neil Gorsuch, writing for the Court (joined by Chief Justice Roberts and Justices Thomas, Sotomayor, Kavanaugh, Barrett, and Jackson), affirmed the dismissal - and said that Hemani's conduct was presumptively protected by the Second Amendment.

The government's argument was a stretch - citing "habitual drunkard" laws which targeted people who "regularly use intoxicants" for public-safety reasons and operated similarly by restricting liberties. 

The Court completely shot that down; agreeing that a "habitual drunkard" generally meant someone intoxicated "to such a degree as to deprive him of his ordinary reasoning faculties" or "incapable of conducting [his] own affairs," "mentally incompetent," or who had "lost the power of self-control." Early American statutes and cases required practical incapacitation. Given the era's "culture of copious drinking" (notable Founders consumed significant amounts daily or at events without being labeled habitual drunkards), the law specifically applied to people too lost in the sauce to function - not regular users. By contrast, the government's interpretation automatically disarms anyone who regularly uses any amount of any controlled substance for a non-prescribed purpose, without showing incapacitation or danger. The Supremes said that this was "difficult to square with the historical record."

Doubts about the government's claimed purpose: Even setting aside the historical mismatches, the Court questioned whether §922(g)(3) as construed even serves to disarm "categorically violent and unusually dangerous" persons. It incorporates the Controlled Substances Act's broad health-and-welfare criteria (not limited to violence risk), and the government's own recent actions - DOJ guidance curtailing marijuana prosecutions, moving some marijuana products from Schedule I to III, widespread state legalization, and data suggesting more adults now report daily/near-daily marijuana use than alcohol - undercut the claim that all regular users are inherently dangerous. Affording the government "broad power to designate any group as dangerous and thereby disqualify its members from having a gun" would risk swallowing the Second Amendment.

The decision is deliberately narrow. It does not:

  • Address efforts to ban addicts or those presently intoxicated from possessing firearms.
  • Invalidate other prophylactic laws Congress might enact for users of particular drugs shown to pose special firearm-misuse risks.
  • Touch §922(g)(1)'s felony-disarmament provision.
  • Decide whether the government could prevail with individualized proof that a defendant's drug use renders him a danger to himself or others, or proof that a specific drug always renders its users dangerous.

It simply holds that the government's broad argument - applied to a cooperative individual whose regular but non-incapacitating marijuana use was the sole basis for prosecution - is inconsistent with the Second Amendment's historical tradition.

"Today’s Supreme Court decision in U.S. v. Hemani is a significant victory for the Second Amendment and a major rebuke of the federal government’s attempt to turn peaceable Americans into prohibited persons without any evidence that they are dangerous," Erich Pratt, Senior VP of Gun Owners of America said in a statement to ZeroHedge. "Gun Owners of America and Gun Owners Foundation filed an amicus brief urging the Court to look past the government’s handpicked plaintiff and to focus on the core Second Amendment issue - and thankfully, the Court did exactly that. This ruling sends a clear message: the Department of Justice cannot continue ignoring the text, history, and tradition of the Second Amendment in order to defend gun control laws. It is long past time for the DOJ to stop carrying water for anti-gun policies and start defending the constitutional rights of the American people."

Tyler Durden Thu, 06/18/2026 - 15:45

US Company Gets Approval To Build The World's First Fusion Power Plant In Washington

US Company Gets Approval To Build The World's First Fusion Power Plant In Washington

Authored by Ameya Paleja via Interesting Engineering,

US-based fusion energy company Helion has received the regulatory clearances to build the world's first fusion energy power plant. The company has received a Radioactive Materials License (RML) and a Radioactive Air Emissions License (RAEL) from the Washington Department of Health (DOH), clearing the way to begin construction of the generator building at the power plant site.

Helion's Orion reactor is set to be the world's first fusion power plant.Helion Energy

As the world looks for newer ways to meet it energy demands without emitting carbon, fusion energy seems to be the most likely option. Using the chemical reaction that occurs on the Sun, fusion energy can potentially generate large amounts of energy from simpler atoms like hydrogen and its isotopes.

Unlike its counterpart, nuclear fission, fusion energy does not produce large amounts of radioactive waste that need to be stored safely. Moreover, unlike renewables like wind and solar, fusion energy plants can work on demand, meeting energy requirements as they arise, without the investments required in energy storage too.

Commercializing Nuclear Fusion

For all its benefits, nuclear fusion is still not a commercially available technology because the fusion reactors have not been able to generate more energy than they consume. Washington-state-based Helion Energy, though, is confident that it can achieve this fairly soon.

While it has not yet published any peer-reviewed papers demonstrating how its fusion reactor works, the company is proceeding to build a fusion reactor that it will deploy commercially. It also has an agreement in place with Microsoft to supply 50 MW of power to a data center from its fusion reactor by 2028.

The facility dubbed Orion is under construction in Malaga, Washington state and recently became the first such facility in the world to secure regulatory licenses to construct the nuclear plant. So far, the assembly and office building of the plant were completed but the recent grant of licenses from the DOH allows Helion to begin constructing the reactor as well.

Why Is NRC Not Involved?

As a nuclear energy company, Helion should ideally be seeking approval from the US Nuclear Regulatory Commission (NRC). However, the NRC regulates nuclear fusion under the byproduct material framework, putting it in the same category for approvals as particle accelerators and hospitals, instead of nuclear reactors.

This is not just a distinction made by the NRC but one also ratified by the US Congress in the ADVANCE Act of 2024, and it shows that nuclear fusion has a very different safety profile from fission and hence its path to deployment is also different.

The issuance of the RML and RAEL licenses by the Washington DOH is a major milestone for Helion as it confirms that it has facilities, personnel, and safety programs that meet the safety standards for a fusion facility at the Malaga site.

"We are extremely proud to be granted these licenses from the Washington DOH, making us the first company in the world with the regulatory approvals in place for fusion power plant operations," said David Kirtley, CEO of Helion Energy, in a press release shared with Interesting Engineering.

"We have a long history of working with the DOH to license our previous fusion activities. Today's announcement represents the rigor of that work and opens the door for practical, commercial, safe fusion power."

In addition to the approvals needed to build its reactor, Helion has also secured a transmission interconnection agreement with Chelan County Public Utility District that will enable energy generated from its fusion power plant to be supplied to the grid, a global first as well.

The question now is whether Helion will be able to meet its deadline to power Microsoft's data center by 2028 from its fusion power plant.

Tyler Durden Thu, 06/18/2026 - 15:25

Fed Moves To Close Stablecoin Loopholes With New Customer ID Rules

Fed Moves To Close Stablecoin Loopholes With New Customer ID Rules

Authored by Micah Zimmermann via BitcoinMagazine.com,

The Federal Reserve proposed Thursday that payment stablecoin issuers maintain written customer identification programs, a move that signals Washington’s determination to bring digital asset markets under the same anti-money laundering discipline long applied to traditional banks — even as regulators race to finalize rules before a statutory deadline this coming January.

The proposal would require so-called permitted payment stablecoin issuers, or PPSIs, to collect from each new customer a legal name, date of birth or formation, physical address, and a government-issued identification number before opening an account. 

The Federal Reserve framework mirrors CIP obligations that banks, broker-dealers, mutual funds, and futures commission merchants have operated under for more than two decades. Regulators will take public feedback on the proposal for 60 days.

The Federal Reserve’s action follows a wave of rulemaking set in motion by the Genius Act — formally, the Guiding and Establishing National Innovation for U.S. Stablecoins Act — which President Trump signed into law in July 2025.

That landmark legislation created the first federal regulatory system for stablecoins, mandating 100% reserve backing with liquid assets and subjecting issuers to the Bank Secrecy Act for the first time. 

The statute requires stablecoin issuers to establish effective anti-money laundering, sanctions compliance, and customer identification programs. The Genius Act becomes effective on the earlier of January 18, 2027, or 120 days after primary federal regulators issue their final implementing rules.

Federal Reserve Governor cautions towards stablecoins

Federal Reserve Governor Michael Barr has emerged as the most vocal voice of caution within the regulatory apparatus, even as his colleagues have embraced digital assets with new openness. Speaking in March at a Federalist Society conference in Washington, Barr warned that stablecoins face material risks around reserve asset quality, regulatory arbitrage, anti-money laundering gaps, and financial stability — concerns he argued the Genius Act’s primary text does not resolve on its own. 

“While some digital asset service providers are subject to anti-money laundering and anti-terrorist financing requirements in their home jurisdiction, it is far too easy for bad actors to evade these restrictions and operate without detection when transacting in digital assets,” Barr said in a statement Thursday. 

Barr, who previously served as the Federal Reserve’s top bank cop, contends that detailed rulemaking remains the critical instrument for translating the statute’s intent into enforceable protections.

Thursday’s proposal is the latest in a dense sequence of rulemakings from multiple agencies. In April 2026, the Treasury Department’s Financial Crimes Enforcement Network and the Office of Foreign Assets Control issued a joint proposed rule requiring PPSIs to adopt written AML and countering-the-financing-of-terrorism programs and a full sanctions compliance framework. 

That rule would carve PPSIs out of the existing money services business category and treat them as a distinct class of BSA-covered financial institutions — a significant structural change, given FinCEN’s finding that roughly half of known stablecoin issuers have not registered as MSBs at all. 

The FDIC and OCC each issued their own notices of proposed rulemaking in parallel, covering licensing, reserves, capital requirements, and redemption standards. The CIP proposal announced Thursday is a separate, complementary rulemaking to those AML and sanctions rules.

Stablecoin rules and nuance

The proposed customer identification requirements carry technical nuance tailored to stablecoin markets. Unlike banks, a PPSI can face demands for direct redemption from token holders who acquired coins on the secondary market rather than through a direct issuance relationship. 

The proposal addresses this by defining an “account” to include that redemption event, meaning an individual who acquires a stablecoin on an exchange and later redeems it directly with the issuer would trigger CIP obligations at the moment of that interaction. 

Purely secondary market transactions in which the PPSI is not a direct counterparty — including transfers conducted via smart contract — would not constitute an account relationship under the proposed framework.

The timeline for finalization is tight. With the Genius Act’s effective date potentially arriving as early as 120 days after the agencies publish their final rules, the window for comment, revision, and adoption is compressed. Final CIP rules are not expected before 2027, which means the statute could take effect before its customer identification architecture is fully in place. 

Tyler Durden Thu, 06/18/2026 - 14:45

It Wasn't Fireworks... Social Isolation, Escalating Anger Drove Palisades Arsonist's Desire For Revenge, Jury Told

It Wasn't Fireworks... Social Isolation, Escalating Anger Drove Palisades Arsonist's Desire For Revenge, Jury Told

Explosives and arson experts from the U.S. Bureau of Alcohol, Tobacco, and Firearms this week told a jury in the federal arson case against Jonathan Rinderknecht that fireworks could not have been the culprit.

The 29-year-old Rinderknecht is accused of starting a blaze in the Santa Monica Mountains, which investigators say led to the deadly Palisades Fire of 2025.

“Anyone who was in this area—if there was a firework launched, burning, or landing here—would have seen it. They’re bright, there’s a lot of color, a lot of flame, a lot of stars. And you would definitely hear it,” Kevin Miner, an explosives enforcement officer and unit chief at the agency’s training facility in Huntsville, Alabama, told the court.

“It’s 140 decibels of sound—that’s more than twice what it takes to harm the human ear.”

Miner said he based his findings on video surveillance footage, witness testimony, and analysis of sound profiles, topography, and weather conditions.

As Beige Luciano-Adams reports for The Epoch Times, Rinderknecht is on trial for three federal counts of arson related to property damage sustained in the Pacific Palisades Fire, which killed 12 people and incinerated more than 6,000 homes in the eponymous coastal enclave.

The state argues the catastrophe was a “holdover” or continuation of the Lachman Fire, which investigators say Rinderknecht allegedly ignited with a Bic lighter just after midnight on New Year’s Eve 2024, driven by a desire for “revenge against society.”

Defense attorneys maintain the government has no “reliable evidence” showing that Rinderknecht started the Lachman Fire on Jan. 1, much less that he was responsible for a separate fire that began a week later on Jan. 7.

Rather, Rinderknecht’s defense team says he encountered a fire and called 911 to report it in good faith—and that a firework was the more likely cause.

ATF agents on Monday and Wednesday dismantled the firework origin theory with a methodical recounting of the evidence.

While in theory, an aerial firework could cause a blaze like the Lachman Fire, Miner acknowledged under cross-examination that the specific conditions in the area and the fact that no witnesses—including, by his own account, the defendant—saw any fireworks, make it extremely unlikely.

Federal fire investigators also ruled out so-called “ground salutes” or ground-based fireworks, a malfunctioning or smoldering firework, or other potential causes like cigarettes, lightning, or powerlines.

Steve Haney, an attorney for Rinderknecht, sought to sow the seeds of reasonable doubt.

“For 10 days, everyone ignored a crime scene, didn’t they?” he asked Miner on cross-examination.

If the Jan. 1 Lachman Fire was an arson, then it was a crime scene—but it wasn’t preserved as such, Haney said, noting the area remained open to the public, planes dropped water and fire retardant on the burn scar, and a subsequent fire razed the area, potentially incinerating physical evidence.

“Isn’t it true that if there were evidence of fireworks, it would have been washed down the hill?” Haney asked. “And for at least nine days, no one went up there to look for fireworks materials?”

Miner ultimately agreed such was theoretically possible, but said the lack of physical evidence in this particular case was not a concern.

“I relied more on the sound profiles, and the video and witness statements. Frequently we have very little physical evidence of the fireworks after suppression, so it’s not uncommon for that to disappear.”

Fireworks

Attorneys for the state preempted the defense’s argument that witnesses, including nearby residents, heard what they thought were fireworks just before midnight that could have emanated from the origin area.

“There are a variety of statements—most in their homes, some said they heard a popping, and a couple people referred to bottle rockets, some to fireworks,” Miner said.

But, he said, any firework sounds they heard more likely than not would have come from below the neighborhood, given the fact that the homes are terraced into the mountainside, and the fire origin area is around 350 feet above it.

“It drops off significantly … Sound has a tendency to travel up,” he said.

Sound emanating from an aerial firework, Miner explained, is omnidirectional—“anything airborne will send sound and blast waves out in all directions.”

In the particular area where investigators believe the fire started, the sound would have traveled everywhere until it hit objects, clouds, hard land, or buildings to absorb or reflect it, Miner said.

“In calm weather like that, there’s nothing to mask the sound. Sound travels very quickly and easily through that medium.”

Something set off in the lower canyons below the homes, he explained, would bounce until it hit objects, clouds, or buildings to absorb it; something set off up higher would be less likely to be heard at all, as the sound energy would “escape into the atmosphere.”

One nearby resident, located around 0.2 miles and around 350 feet below the fire’s area of origin, reported his windows shaking before midnight.

But Miner said it was extremely unlikely he would’ve been the only one to experience this if it came from a firework above him.

“If that were to actually be caused by anything on the mountaintop, you would expect to see evidence in houses adjacent, maybe 200 to 300 feet away—broken glass, cameras askew,” Miner said.

“You can’t rattle a window 0.2 miles away without rattling everyone’s windows.”

A Burning Bush

Investigators determined the fire was incendiary in nature—in this case, ignition of vegetation. They came to this conclusion based on a review of video surveillance, witness testimony, and the defendant’s own statements.

“The defendant admitted having a lighter with him up on Buddha Hill,” said Derek Hill, a fire analyst and recently retired Certified Fire Investigator with the ATF who worked the case, referring to the landing area where investigators believe the Lachman Fire started.

“He said he was alone on the hill. He identified where the fire started correctly—this was information that wasn’t public at the time.

“It gave us pause because he was recognizing the fire from a location we know he was at, but not when that fire would have been visible,” he said.

Investigators tracked Rinderknecht’s movements using geolocation data from nearby cellular towers, constructing a detailed timeline that they overlaid with one constructed from video surveillance footage.

All of this, Hill said, corroborated investigators’ work, including a meticulous mapping of fire pattern indicators, in which they looked at the fire’s impact on the environment to determine how and where it spread, and at what intensity.

Hill helped lead a team that included 11 federal Certified Fire Investigators and five wildland investigators. Arriving on the scene of the Palisades Fire on Jan. 13, they spread across a general area where they believe the blaze originated, and studied the terrain, at times crawling or slithering across the charred ground to find clues.

Ultimately, they were able to narrow a specific area of suspected origin—and then a single bush from where the fire allegedly emerged.

Firefighters had described firebrands or embers that came off the Lachman Fire, which burned from north to south. A detailed analysis, investigators say, confirmed their hypothesis that the Jan. 1 fire had smoldered underground until resurfacing seven days later, when it was picked up by winds and continued as the Palisades Fire.

“We started identifying burned out roots, some exposed and some not,” Hill said. “That was indicative of fire burning underground in the root structure of the shrub. We know the fire came out of this root ball and spread out.”

Compromised Crime Scene

Haney noted—and Hill acknowledged—that investigators could not preclude the existence of an unknown combustible that may have been lost in the fire, or during suppression or cleanup activities.

If the allegation is that Rinderknecht maliciously and willfully started the Lachman Fire, Haney said, the crime scene was compromised.

The fact that people were allowed to walk through a crime scene for nine days was “not ideal,” Hill acknowledged.

Under redirect, the witness said that in nearly 800 fire scenes he’d worked during the course of his career, the majority involved some kind of water suppression before investigators arrived—meaning it was a common condition and one for which agents are trained to take into account.

“Water didn’t wash away the surveillance footage, did it?” Mark Williams, attorney with the Department of Justice, asked.

“It did not,” Hill said, explaining that investigators used the surveillance footage to construct a detailed timeline of when the fire was first visible and how it developed, which they compared with a timeline of the defendant’s movements.

Haney suggested that timeline was incomplete—some videos were taken from miles away and didn’t have audio. And while footage may have depicted when the fire was visible, it didn’t show when it started.

Where Hill said investigators determined the fire ignited between 12:10–12:12 a.m.—when it shows up on surveillance video—Haney noted there was no direct evidence of such.

“You don’t have any cameras that show ignition of when the Lachman Fire occurred, do you?”

“No,” Hill replied.

Social Isolation, Escalating Anger Drove Palisades Arsonist’s Desire for Revenge, Analyst Tells Jury

However, as Luciano-Adams continues, a behavioral analyst on Wednesday told a federal jury that social isolation and escalating anger helped drive a 29-year-old Uber driver to ignite a brush fire in the Santa Monica Mountains, which days later would resurface as the deadly inferno that killed 12 people and leveled more than 6,000 homes in the wealthy coastal enclave of the Pacific Palisades.

Dr. Kevin Kelm, a retired supervisory special agent with the U.S. Bureau of Alcohol, Tobacco, and Firearms who specializes in behavioral analysis and criminal profiling related to arson, alleges Jonathan Rinderknecht was motivated by an “expressive,” or emotionally driven, and opportunistic desire for revenge on society at large.

“In my opinion, the defendant exhibited behavior consistent with [a] ‘revenge’ or ‘societal motivated revenge’ fire,” Kelm said, describing his analysis of Rinderknecht’s behavior before, during, and after the fire.

The state argues that Rinderknecht’s deteriorating mental state and escalating fixation on themes such as wealth disparity, “climate change,” and vigilantism in the months leading up to the fire reveal his motive.

Arsonists motivated by societal revenge, Kelm said, referring to an arson motive typology used by the FBI, typically have many things going wrong in their lives and fixate on problems, which are exacerbated by an accumulation of stressors–including interpersonal relations and social isolation.

“These pressures continue to build and build,” Kelm said, and the act of setting a fire “provides some emotional relief and diversion from the problems.”

Analysis of Rinderknecht’s behavior in the months leading up to the fire, including in fraught interpersonal relationships and in thousands of increasingly frustrated interactions with the OpenAI chatbot ChatGPT, is evidence of such escalation, Kelm said.

It goes to the inability to deal with a stressor. And it was focused on a large stressor for the defendant, which has to do with societal issues, one being wealth inequality and large corporations that were distressing to [him],” said the analyst, who previously worked on cases related to both the Oklahoma City Bombing of 1996 and the 911 terrorist attack on the Pentagon.

Digital records uncovered in the investigation reveal that Rinderknecht was at least fixated on a tableau pitting the world’s rich and powerful against the rest of society and the environment, and related feelings of loneliness and helplessness. Uber passengers who rode with him around the time of the fire testified about vitriolic, threatening rants, “incel vibes,” and erratic behavior.

Steve Haney, his attorney, has argued that none of this makes him an arsonist.

Cross-examining Kelm on Wednesday, Haney suggested that many people are upset about large corporations, politics, the wealth disparity, or “climate change.”

“Much of what you’ve testified and observed is pretty normal American thinking right now, isn’t it?” Haney queried.

“I didn’t cherry-pick,” Kelm said, noting that each behavior on its own may not in itself constitute motivation. “You’re correct. Each one of these things applies to large parts of the population. But not when it’s in your everyday life and occurs over and over and in all these domains … it becomes controlling and the behavior is a response to that.”

Societal revenge arsonists, according to the FBI typology, do not plan.

“It’s extremely impulsive. And in this case, the defendant put himself at the location. He stopped taking work calls, he went to this isolated location he had familiarity with,” Kelm said, noting that almost all arsonists choose locations that are in their environment or “comfort zone.”

The witness said investigators’ conclusion that Rinderknecht started the fire with a lighter, as opposed to accelerants or other ignition methods, was consistent with expressive arson.

While Rinderknecht’s attorneys point out he called 911 repeatedly to report the fire, investigators allege such was part of a staging he did to appear cooperative and deflect suspicion, which Kelm said was common in arson cases.

Authorities also suspect the defendant attempted to cover his tracks by making a screen video of a 911 call and by asking ChatGPT whether one could be blamed for a fire started with a discarded cigarette.

The defendant’s “methodical stroll” down the hill as he made 911 calls, Kelm said, “is just totally inconsistent with someone who discovers a fire.”

The ChatGPT query, Kelm argued, was “unnecessary behavior” by Rinderknecht. “It’s excessive, and very inconsistent with what I’d expect an average individual to do when trying to report a fire and get out of harm’s way.”

Firefighters work to extinguish the Palisades Fire burning near Los Angeles, Calif., on Jan. 8, 2025. John Fredricks/The Epoch Times

After leaving the scene, Rinderknecht returned and took videos of the fire and first responders; Kelm suggested this could indicate the fire was a source of excitement—another motive typology.

But the emotional release that an expressive arsonist may feel after lighting a fire, Kelm said, can be short-lived.

“I think once some of the initial excitement wears off, the daily routine hasn’t changed. It’s back to being an Uber driver, to not making enough money: listening to partygoers sitting in your back seat having a great time while your life hasn’t changed at all,” he said.

Kelm described the defendant’s behavior, both before and after the fire, as typical of a “a grievance collector—things go wrong, and he’s not the cause, it’s always someone else’s fault.”

Writ large, the profiler said, the behavior took on increased significance, as the pieces fit together like a “jigsaw puzzle.”

“What I’m looking for is to see this pattern emerge over time in all of the domains … it tells me what the whole picture is,” Kelm said.

Haney asked whether anger-motivated arsonists want to destroy things.

“No, not necessarily. The act of actually setting the fire is the objective. Oftentimes, the consequences are very surprising to the individual and result in a panic response, because what happens wasn’t what was expected.”

Haney asked whether Kelm had ever, in a half-century of experience, seen a revenge arsonist call 911 17 times, as his client had.

“It’s pretty unusual,” Kelm said. “That caught my attention.”

Tyler Durden Thu, 06/18/2026 - 14:25

Asian Refiners Swamped, Brace For Over 60 Million Barrels Of Oil Ready To Exit Hormuz

Asian Refiners Swamped, Brace For Over 60 Million Barrels Of Oil Ready To Exit Hormuz

By Tsvetana Parskova of OilPrice.com

Crude cargo arrivals in Asia from the Middle East could accelerate in the coming weeks as more than 60 million barrels of oil stuck in the Persian Gulf prepare to exit the Strait of Hormuz and head to Asian markets once the chokepoint reopens to traffic.  

About 62 million barrels of crude oil on nearly three dozen supertankers are expected to make their way to Asia within weeks after the Strait reopens, according to Signal Group data carried by Bloomberg.

Asia, which felt the supply shock first and the most as early as in March, could now see a wave of much-delayed crude supply that would weigh on prices. Refiners in Asia, including China, have slashed run rates in response to the loss of supply from the Middle East and the high prices to procure alternative cargoes.    

The supply waiting to exit the Strait of Hormuz could prompt some refiners to increase processing rates or opt for replenishing commercial stock tanks that have been drawn down over the past three months.

Asia, however, appears to have stocked up on enough supply at least for June and July after turning to West Africa and South and North America to offset the losses from the Middle East.

Asian refiners are well-supplied for the coming weeks, anonymous traders with knowledge of the situation told Bloomberg.

The expected imminent reopening of the Strait of Hormuz has prompted investment banks to slash their oil price forecasts for this year and next.

Morgan Stanley, for example, now sees Brent crude averaging $80 per barrel in the last quarter of 2026, and $90 per barrel in the third quarter. The bank’s earlier forecast was for an average of $100 per barrel of Brent in the third quarter, while the fourth-quarter price forecast was unchanged.

Goldman Sachs cut its price forecast for the fourth quarter to $80 per barrel from $90 per barrel, and the 2027 average forecast for Brent crude to $75 per barrel from $80 in earlier forecasts. According to the bank’s commodity analysts, tanker traffic via the Strait of Hormuz would recover fully by the end of July.

Tyler Durden Thu, 06/18/2026 - 14:05

Just Days After Record IPO, SpaceX To Sell $20 Billion In Bonds

Just Days After Record IPO, SpaceX To Sell $20 Billion In Bonds

Earlier this week, we showed the unprecedented pace of hyperscaler Investment Grade debt accumulation, which according to Morgan Stanley calculations had doubled in just two quarters, rising from 0.9x leverage in Q3 '25 to 1.8x currently, a pace that has already surpassed the entire energy sector's gross leverage of 1.6%. 

Source

We predicted that this staggering growth rate would continue increasing at a pace of over 0.3x per quarter, and moments ago we got another confirmation of the insatiable demand for AI debt when Bloomberg reported that just days after the biggest ever Initial Public Offering in history, bankers for SpaceX are preparing to hold calls with investors as soon as next week to discuss a potential bond offering.

The bond is expected to be at least $20 billion, and the investor calls may kick off on Monday. Plans and timing may change of the offering may yet change, according to Bloomberg. 

SpaceX plans to issue investment-grade bonds for the first time, adding to the already overheating IG calendar. The bond proceeds would refinance a temporary $20 billion bridge loan that matures in September 2027. The bridge loan makes up the bulk of SpaceX’s $29.1 billion of long-term debt as of March 31, the company said in its IPO prospectus. 

Bank of America, Citigroup, JPMorgan, Goldman and Morgan Stanley provided the bridge financing and are expected to run the bond deal .

SpaceX’s historic IPO turned the start-up into one of the world’s most valuable public companies and turned its founder into the world’s first trillionaire (although the stock is sliding today, down 10% at one point as momentum left the stock to go back to its preferred memory momentum names). The company’s embrace of AI with the acquisition of Musk’s xAI in February made the listing somewhat of a referendum on the IPO prospects of competitors Anthropic and OpenAI, both of which are expected to go public as soon as this year.  

The bottom line here is that literally every company is now rushing to issue as much debt (and equity) as the market will possibly absorb, as it is only a matter of time before the debt, and thus capex, window closes. 

As Goldman Delta-1 head Rich Privorotsky wrotes, "everyone still appears convinced they must keep spending simply to remain competitive, while token cost compression/advent of neoclouds puts pricing pressure on core business. If token prices continue to compress alongside falling compute costs, the benefits may accrue to users faster than providers. Ironically, the first hyperscaler to signal that it can slow the pace of spending will likely see its share price rewarded (and will crush semiconductor stocks). If that happens, others will take notice. That is the reflexivity that ultimately stalls the capex cycle… not a lack of demand, but investors deciding that incremental returns on the next dollar of spend are no longer attractive."

Privo's conclusion: "Watch hyperscalers share price as leading indicator."

Tyler Durden Thu, 06/18/2026 - 13:50

CENTCOM Says Hormuz Naval Blockade Ends As Gulf Energy Flows Reboot

CENTCOM Says Hormuz Naval Blockade Ends As Gulf Energy Flows Reboot

Summary:

  • U.S. CENTCOM says U.S. Naval Blockade on Hormuz has been "Lifted" 

  • Kuwait Petroleum CEO says Energy Production to Ramp in a Week 

  • Iran Media says Southern Ports Traffic Begins Normalizing 

  • Hormuz Normalization Begins As Saudi Supertankers Exit And A Flood Of Persian Gulf Oil Heads For Asia

The roughly two-month U.S. naval blockade of the Strait of Hormuz has officially ended, according to U.S. Central Command on X. This marks a major de-escalation in the Gulf region, as early signs point to the beginning of normalization of energy flows through the critical waterway by tankers.

"Today, U.S. forces lifted the blockade on all maritime traffic entering and exiting Iranian ports and coastal areas, in accordance with the President's direction," CENTCOM said. 

CENTCOM continued, "American forces are not impeding the transit of vessels to or from Iranian ports on the Arabian Gulf and Gulf of Oman. All U.S. military blockade enforcement efforts have ceased. Our great Naval Ships will remain in the general area to make sure that all aspects of the agreement are adhered to, obeyed and in full force and effect."

Hormuz flows are still muted.

Searching For Hormuz Normalization Signals 

Attention on institutional desks is shifting toward normalization signals at the Strait of Hormuz maritime chokepoint.

Earlier, we detailed how Saudi supertankers were beginning to exit the narrow waterway bound for Asia, while also noting that a massive backlog of tankers remains poised to exit the Persian Gulf as the reopening process gets underway.

Bloomberg, citing the semi-official Iranian Students' News Agency, reported that commercial vessel traffic at southern ports is moving toward normalization, with vessels carrying critical goods arriving and two tankers departing.

A separate Bloomberg story quoted Kuwait Petroleum Corp. CEO Sheikh Nawaf Al-Sabah, who said in an interview that Kuwaiti output is expected to exceed 2 million barrels a day within a week.

"We anticipate that we can exceed 2 million barrels a day within one week from now." Nawaf Al-Sabah.

He added, "And that pending availability of international commercial shipping, to reach Kuwaiti ports, we should be able to resume pre-war production within a matter of weeks."

At pre-conflict levels, Kuwait was producing 2.5 million barrels a day, but has since slumped to as low as half a million barrels a day.

Related:

Earlier, BofA Global Research's commodity team slashed its 2026E Brent forecast to $82/bbl from $ 93/bbl, citing a flood of crude set to hit the global market in the coming weeks and months as Hormuz normalization ramps up.

"The team has also cut its 2027E Brent forecast to US$70/bbl from US$78/bbl with a surplus of 1.1mb/d forecast during the year," BofA analysts said.

Hormuz Normalization Begins As Saudi Supertankers Exit And A Flood Of Persian Gulf Oil Heads For Asia

Energy flows through the Strait of Hormuz are beginning to restart on Thursday after the interim U.S.-Iran peace deal, with several Saudi-controlled supertankers transiting the critical waterway and exiting the Persian Gulf.

There is a massive backlog of crude and LNG tankers in the Persian Gulf, preparing to exit the Hormuz chokepoint bound for Asia. Bloomberg says 31 supertankers, carrying about 62 million barrels of crude, could soon exit.  

The actual number of crude and LNG tankers preparing to exit could be much higher, as some tankers may turn off their transponders. Once exited, many of those tankers are slated for ports in East Asia and will take roughly three weeks to arrive.

One of the key developments overnight was that three Saudi-controlled supertankers, including Bahri-controlled Saudi VLCCs Shaden, Jaham, and Awtad, switched on their transponders and began exiting the Persian Gulf.

Maritime traffic remains far below normal levels and could take many months to return to normal.

"There are certain practical steps that we believe are necessary before the vessels that have been stranded in the Gulf for the last 110 days can resume transiting the Strait of Hormuz," Sheila Cameron, CEO, and Neil Roberts, head of marine and aviation at the Lloyd's Market Association, told Bloomberg in a statement.

Cameron continued, "The main requirement for recovery is stability and certainty for shipowners and insurers. The road to recovery in the Gulf will be a long and complicated one. It will take months for some sort of normality to return to international shipping with vessels in the wrong place and supply chains distorted."

Daan Struyven, Goldman Sachs' co-head of Global Commodities Research, told clients, "We now assume that Persian Gulf exports normalize to pre- war levels by the end of July."

On Thursday morning, Brent crude futures fell below $78, while West Texas Intermediate was near $74. Traders are already pricing in the coming flood of seaborne crude.

Dubai and Murban crude futures curves have flipped into contango, Oman crude is trading at a discount to Dubai, and some diesel cargoes are trading below benchmark levels after commanding lofty premiums.

The first signs of normalization are already visible, following President Trump's acknowledgment on Wednesday at the G7 Summit that the interim peace deal with Iran to reopen Hormuz was signed as the U.S. was nearing the point of "running out of reserves in about four weeks."

Struyven noted that even if the expected "normalization" occurs by the end of next month, flows may recover to only 70% of pre-war levels ...

Latest overnight headlines (courtesy of Bloomberg):

US-Iran Peace Deal

• President Trump signed an interim peace deal with Iran on Wednesday evening at the Palace of Versailles, following the G7 summit

• The deal is now in effect and was signed electronically by both presidents, according to US and Iranian officials

• The memorandum of understanding opens the way for 60 days of negotiations on Iran's nuclear program and other issues

• Iran will receive sanctions waivers allowing it to sell oil immediately and gain access to a $300 billion economic development program

• Defense Secretary Pete Hegseth said the US can reimpose an ironclad blockade if Iran doesn't comply with the deal

Strait of Hormuz Reopening

• Three Saudi supertankers carrying about six million barrels of oil exited the Strait of Hormuz on Thursday, marking the first Saudi-owned crude tankers to cross since the war began

• A laden LNG carrier and an empty products tanker crossed the Strait of Hormuz early Thursday, sailing along a route approved by Tehran for safe passages

• Qatar brought an empty LNG tanker back into the Persian Gulf through the Strait of Hormuz for the first time since the war began on Thursday

• Goldman Sachs estimates oil flows through the Strait of Hormuz may recover to only about 70% of pre-war levels, with normalization potentially completed by the end of next month

Economic Impact

• US gasoline prices fell below $4 a gallon on Thursday for the first time since March, down from a May peak above $4.50

Deal Criticism and Complications

• Trump faced pushback from Republicans who object to the deal and the billions of dollars set to flow to Tehran

• Trump brushed aside several red lines on Wednesday, suggesting Iran should have the right to enrich uranium, develop ballistic missiles and access frozen funds

• Israel rejected a US request to withdraw troops from southern Lebanon, citing continued presence of Hezbollah, threatening to complicate broader peace efforts

Iran Leadership Investigation

• The US Justice Department is conducting a probe into how Iran's Supreme Leader Mojtaba Khamenei built a global investment portfolio with exposure to Wall Street banks, examining allegations of money laundering and corruption

Related Legal Developments

• A federal judge allowed the Justice Department to drop a criminal case against Turkish state-owned Halkbank on Wednesday for allegedly helping Iran evade US sanctions

Tyler Durden Thu, 06/18/2026 - 13:20

Take-Two Shares Jump As 'Grand Theft Auto VI' Pre-Orders Open Next Week

Take-Two Shares Jump As 'Grand Theft Auto VI' Pre-Orders Open Next Week

Take-Two Interactive Software shares jumped early in the cash session after the company announced on X that pre-orders for Grand Theft Auto VI will open next Thursday. The move is easing investor concerns that the highly anticipated game could face another delay, reinforcing expectations that Rockstar Games remains on track for its Nov. 19 launch date.

"Pre-orders for Grand Theft Auto VI will officially begin on June 25 on digital storefronts and at other select retailers," Rockstar Games wrote on X. The gaming studio is a wholly owned subsidiary of Take-Two.

The last major GTA release was GTA V, which launched on Sept. 17, 2013. Gamers have been waiting 13 years for a major GTA installment.

Rockstar has upset not just Take-Two investors but also GTA gamers on numerous occasions, indicating that its developers needed more time to finish the game, thereby delaying the launch. The launch date is set for Nov. 19.

Take-Two shares are up nearly 6% in the cash session, though the stock has traded mostly sideways since peaking around $262 in October 2025.

Last month, we asked:

BMO Capital Markets analyst Brian Pitz noted, "We highlight that the game's price remains a key question, as the launch of preorders next Friday should confirm base game pricing. We will also closely monitor for any higher-priced SKUs that give players early access to the game. Reiterate our Outperform, Top Pick, and $280 target price."

According to Bloomberg data, 97% of the analyst coverage on TWWO is "Buy" rated with an average 12-month price target of $281.97.

For reference, GTA V sold about 225 million to 230 million copies worldwide.

There is already a report from Oppenheimer analyst Martin Yang that console sales are increasing ahead of the GTA VI release.

Tyler Durden Thu, 06/18/2026 - 13:05

RFK Jr. Announces More Than $700 Million To Target Mental Illness, Homelessness

RFK Jr. Announces More Than $700 Million To Target Mental Illness, Homelessness

Authored by Zachary Stieber via The Epoch Times,

The Trump administration is going to spent more than $700 million on programs aimed at reducing drug addiction, homelessness, and mental illness, Health Secretary Robert F. Kennedy Jr. said on June 17.

Health Secretary Robert F. Kennedy Jr. in Washington on May 18, 2026. Kent Nishimura/AFP via Getty Images

The largest portion of the new funding, nearly $239 million, is going to a lifeline that people who are suicidal can call. Some $223 million is going to community behavioral health clinics. Nearly $100 million is being offered to communities that apply to the Safety Through Recovery, Engagement, and Evidence-based Treatment and Support (STREETS) Program, which provides services for homeless people who are addicted to drugs or have serious mental illness.

The other funds are going to programs targeting the prevention of, treatment for, and recovery from drugs, or programs that support mentally ill people.

"These investments will help move people from the streets into treatment and recovery, strengthen families, save lives, and make communities safer," Kennedy said in a statement.

The funding follows an executive order from President Donald Trump that directed officials to work on shifting homeless people into institutions to help address crime and disorder in the nation's cities, and another order that says the disease of addiction must be stopped through an emphasis on treatment.

"My Administration will drive a new national response to the disease of addiction that will create stronger coordination across government, the healthcare sector, faith communities, and the private sector in order to save lives, restore families, strengthen our communities, and build the Great American Recovery," Trump said in the latter order.

Kennedy on Wednesday visited the Easterseals Michigan-Clinton Township Certified Community Behavioral Health Clinic, part of the Easterseals network of facilities that assist people with disabilities, their families and caregivers, and veterans.

"Our goal is to provide comprehensive outpatient mental health and substance use services that are person-centered, trauma-informed and evidence-based," the clinic's website states.

Kennedy said that homelessness is "one of the greatest problems that we have now, health problems in this country" and that it is interconnected with the crisis of drug addiction, which has caused more than 1 million deaths since 2000.

Kennedy said administration officials do not support so-called harm reduction initiatives, such as needle exchanges or "safe injection sites." Instead, the administration is emphasizing treatment.

"Recovery works. Treatment works. Accountability works," he said.

Kennedy did say that the withdrawal drugs Suboxone and methadone work, particularly for addicts who cannot enter treatment at certain times. They are "good bridge solutions," he said.

Tyler Durden Thu, 06/18/2026 - 12:45

Amazon In Talks To Sell Its Trainium AI Chips To Other Firms, In Challenge To Nvidia Dominance

Amazon In Talks To Sell Its Trainium AI Chips To Other Firms, In Challenge To Nvidia Dominance

Amazon is in talks to sell its custom-made Trainium AI chips for use in other companies’ data centers, Bloomberg reports, noting this "represents a key expansion of its efforts to cut into Nvidia's dominance", although a less optimistic read is that the company does not have enough demand or capacity to use the chips for its own uses.

Peter DeSantis, Amazon’s AI chief, said the world’s largest cloud computing company has begun discussions but declined to name potential customers. Presumably, it will try to steal market share by offering its product at a much more competitive terms, which suggests more pricing pressure across the AI ecosystem.

“We view AI infrastructure as rapidly evolving,” he said in an interview in Paris. “And we’re constantly looking at ways to get to more customers.”

Introduced in 2020, Amazon’s AI accelerator, Trainium, has won a few marquee buyers, including OpenAI, Anthropic and Uber, which access the hardware via Amazon Web Services. The chip has produced more than $225 billion in revenue commitments, Amazon said in April (for a word of caution about purchase commitments read our discussion on the trillions in off-balance sheet liabilities sloshing inside the AI ecosystem).

That same month, CEO Andy Jassy wrote in his shareholder letter that it’s “quite possible” Amazon would sell racks of its chips to third parties. It was part of a broader attempt to reposition the sprawling company around AI, an area where it’s seen as falling behind rivals.

Amazon and other cloud computing titans have each been developing their own alternatives to Nvidia’s popular graphics processing units — and ramped up these efforts after ChatGPT’s arrival.

While the AI boom has generated soaring cloud sales, it’s also fueled a new crop of specialized AI cloud providers and driven demand for “sovereign” services in Europe and other regions that are subject to local laws and usually locate information and data processing in the host country.

In April, Alphabet CEO Sundar Pichai said Google will begin to deliver its Nvidia GPU rival chips, called tensor processing units, to a “select group of customers” for use in their own data centers. Amazon is following suit with Trainium, in part, due to the growing demand outside of the US for computing resources that are controlled locally, according to DeSantis. Alternatively, there is just not enough demand in the US, no matter what the daily bullish propaganda says (because as a reminder, due to the $2 trillion in interlinked off-balance sheet liabilities, the moment one counterparty trips, it will drag down everyone else with it). 

Meanwhile, some of that foreign push, particularly in Europe, has prompted calls for countries to lessen their reliance on US technology or drop it altogether. Speaking at the VivaTech conference in France, DeSantis said the AWS business has not been impacted at all by this trend. Yet. 

The third version of the Trainium chip, which began shipping earlier this year, is “largely sold out,” he said. Amazon said there’s already strong interest in a fourth version that’s expected to debut next year.

DeSantis dismissed the idea that selling Trainium outside of AWS would eat into the company’s cloud business. “There’s so much underconsumption in AI,” he said. “I’m not worried about it.” But with token prices tumbling, and compute rental costs in free fall, both of which signal a sudden drop in demand (or excess supply) for compute...

... he should be.

The executive also cited growth for Amazon’s Graviton chips, a general-purpose processor that it recently began providing to Meta. Over the last three years, DeSantis said Amazon has added more Graviton chips to its computing systems than any other type of chip.

Amazon shares gained as much as 2.5% on Thursday, reaching an intraday high of $243 on the news.

Tyler Durden Thu, 06/18/2026 - 12:25

Centrus Jumps On Deal To Supply Oklo With Domestically-Produced Uranium

Centrus Jumps On Deal To Supply Oklo With Domestically-Produced Uranium

Centrus Energy continues to solidify its role as a cornerstone of America's emerging advanced nuclear sector, today announcing a letter of intent with Oklo to provide domestically produced high-assay low-enriched uranium (HALEU) for the company's next generation of nuclear reactors, according to a release from the company's website.

Shares the domestic enricher jumped more than 6% this morning. 

Under the proposed multi-year agreement, Centrus will begin supplying HALEU in 2029 to support up to five Oklo Aurora powerhouses, including reactors planned for Oklo's 1.2-gigawatt clean energy campus in Ohio. The fuel is expected to be produced at Centrus' enrichment facility in Pike County, Ohio, highlighting the growing importance of domestic nuclear fuel infrastructure.

 The agreement represents a meaningful milestone for the broader advanced reactor industry. One of the largest challenges facing nuclear developers has been securing reliable access to HALEU, a specialized fuel required by many next-generation reactor designs. With global commercial HALEU production historically concentrated in Russia and China, the development of a U.S.-based supply chain has become a national priority.

Centrus has emerged as the top solution to this challenge. By establishing itself as a domestic source of HALEU, the company is helping address a critical bottleneck that has limited deployment of advanced nuclear technologies across the United States.

The deal is a confirmation of what we said a year ago: in a country starved for domestically-produced HALEU, Centrus will outperform, even though sometimes the market is somewhat obtuse and slow in figuring even the most obvious stuff.

The proposed agreement also reinforces growing confidence in Centrus' production capabilities and strengthens its visibility as advanced reactor developers move closer to commercialization. As demand for clean, reliable baseload power continues to accelerate, Centrus appears increasingly well-positioned to benefit from the expansion of the U.S. nuclear energy ecosystem.

With advanced reactor companies such as Oklo advancing toward deployment and domestic fuel supply becoming an essential national objective, Centrus' role as a leading HALEU supplier could become a significant driver of long-term growth and strategic relevance within the nuclear energy industry.

Centrus President and CEO Amir Vexler commented: “Today’s announcement is an important step toward ensuring reliable HALEU supply for next generation reactors and represents a crucial milestone as we work to restore America’s ability to enrich uranium at scale. By connecting advanced nuclear power generation and customer demand with domestic HALEU production in southern Ohio, this agreement helps establish a foundation for a new U.S. advanced nuclear energy hub.”

Other nuclear stocks are also on the rise, with Energy Fuels up almost 17% and reactor manufacturers NuScale Power and NANO Nuclear Energy up about 3% and 5%, respectively.

Tyler Durden Thu, 06/18/2026 - 11:00

The Treaty Of Versailles

The Treaty Of Versailles

By Michael Every of Rabobank

Yesterday, President Trump signed the US-Iran MoU in Versailles. It’s not a treaty, but the parallel with the one signed by Germany there on June 28, 1919, is notable: post-WW1, French Marshal Foch is widely credited with saying, “This is not a peace. It is an armistice for twenty years,” because he saw it as too lenient on the loser of that war.

This MoU is also lenient on Iran, who thinks it won, and again doesn’t look like peace, just an armistice for 20 weeks – which ends two days after the US midterm elections. Indeed, even as Trump was touting the importance of the deal to avoid “economic catastrophe,” he underlined he’ll bomb Iran again if they don’t honor it.

Yet what they honor depends on whose MoU version you read. The 14-point text the US released to CNN differs in important regards from what Bloomberg was running with and the Iranian version:

  • Point 1: There is a link to Lebanon but not necessarily one that forces an Israeli withdrawal. The text calls for the “immediate and permanent termination of military operations on all fronts”, and “ensuring the territorial integrity and sovereignty of Lebanon”, which technically a temporary Israeli security presence does not prevent any more than heavily armed Hezbollah --counter to UN resolutions and the government’s proclamations-- does. Regardless, the IDF is so far saying it won’t withdraw.
  • Point 5: The US says Iran “will make arrangements using its best efforts for the safe passage of commercial vessels with no charge, for 60 days only, from the Persian Gulf to the Sea of Oman and vice versa.” Iran says it will charge on day 61, but can that also be read that the passage is for 60 days, which would then need to be extended? The placing of a comma there could be the literal meme ‘NO MORE WAR’ > ‘NO, MORE WAR.’ The text also says Iran “will conduct dialog with the Sultanate of Oman to define the future administration and maritime services in the Strait of Hormuz in discussion with other Persian Gulf littoral states in line with the applicable international law and the sovereign rights of coastal states of the Strait of Hormuz.” Iran is taking that to mean that it can charge ‘service fees’; yet international law and GCC states may think otherwise when this is discussed.
  • Point 8: The two sides “have agreed to resolve the disposition of stockpiled enriched material pursuant to a mechanism that will be mutually agreed upon in accordance with the schedule mentioned in paragraph seven, with the minimum methodology to be down blended on site under the supervision of the IAEA.” That additional clause is key, and while a step back vs. earlier US uranium demands is a clear deliverable else this all falls apart. Is Iran going to blink here?

Trump also thanked China and Russia for remaining “neutral” in the war, adding “it’s OK” for Iran to have some ballistic missiles, as the Wall Street Journal estimates Iran could earn up $60bn from oil revenues ahead. What that’s spent on (reconstruction, Chinese or Russian arms, or shaheed drone factories to use locally and send to Russia, etc.) is also critical.

Understandably, Iran hawks are lamenting this all as a “disaster” or “catastrophe.” Even Bloomberg underlines what was flagged here months ago: if this MoU is a TACO not a can-kicking exercise until November, it will “unravel geopolitics”, the US creating a power vacuum others will try to fill.

That’s as South Korea’s President Lee just asked Trump to solve the North Korea issue… but they already have a nuke, so what do they get given – access to Anthropic AI?

As all is in flux, the US is also working with Europe to again back Ukraine, whose drone tech now means they hold some good cards, even as the EU reopens official communication channels with the Kremlin. It seems likely that US sanctions could soon go back on Russian oil, which would see the energy complex reshuffled again.

In market terms, the IEA is now seeing a gradual Hormuz recovery tipping into a significant 2027 oil surplus, flipping the narrative entirely – unless war restarts in 20 weeks. Most things remain a passenger to that dynamic.

Ironically, but as expected, the market is trading that possible Mou TACO as dollar positive even as it actually undermines the global architecture that holds the dollar up: but since when did FX look at the long term?

In other geoeconomics, as Europe seems set for a sustained trade war vs. China ahead, the G7 agreed to set up a critical minerals alliance platform to cut their reliance on China – which, as explained here before, logically implies trade decoupling downstream too and the emergence of geopolitical trade blocs.

Meanwhile, in a changing world, the Fed under Chair Warsh is ripping treaties up, not signing them. As our US strategist notes, the FOMC left rates unchanged as expected, with an easing bias dropped, but with an unusually short statement. Indeed, Warsh just terminated forward guidance – which is arguably not such a bad idea given what happens in the Middle East is pivotal to what happens to inflation, and central banks have no idea at all about what will transpire there(?)

In cyclical terms, the June Summary of Economic Projections had already revealed that half of the FOMC participants (who submitted a forecast) expected to hike before the end of the year. Warsh did not submit his.

More importantly, in structural terms, Warsh announced the establishment of five task forces on: Fed communications (is so much needed?); the balance sheet (is so much needed?); improving data (more, better is needed, and Warsh prefers real-time numbers over backwards looking surveys); productivity and jobs (will AI allow for rate cuts?); and inflation frameworks (where things will get even more interesting).

Just as many suspect there is more drama ahead in Hormuz, and that it will never go back to being what it was until recently, the same may be true for the Fed.

Tyler Durden Thu, 06/18/2026 - 10:40

Accenture Crashes Most On Record As AI Threatens Consulting Demand

Accenture Crashes Most On Record As AI Threatens Consulting Demand

Accenture shares crashed by the most on record in premarket trading on a confluence of issues. First, the company's fourth-quarter revenue outlook missed Bloomberg consensus estimates and third-quarter bookings declined, reinforcing investors' belief that consulting demand is declining in the era of AI adoption across corporate America, which is wreaking havoc in the white-collar job market.

The global consulting and technology services company, which helps large corporations and governments with strategy, IT, cloud migration, cybersecurity, and more, guided August-quarter revenue to a range of $17.75 billion to $18.4 billion, below the $18.47 billion figure that analysts tracked by Bloomberg were forecasting. Third-quarter bookings fell to $19.3 billion, down from $19.7 billion a year earlier, while revenue rose to $18.7 billion, slightly below estimates. EPS increased 9% to $3.80.

Here's a snapshot of 3Q earnings, courtesy of Bloomberg:

EPS $3.80 vs. $3.49 y/y

Revenue $18.7 billion, +5.6% y/y, estimate $18.76 billion

  • Communications, Media & Technology revenue $3.22 billion, +10% y/y, estimate $3.2 billion
  • Financial Services revenue $3.49 billion, +6.4% y/y, estimate $3.54 billion
  • Product revenue $5.67 billion, +6.1% y/y, estimate $5.67 billion

Health & Public Service revenue $3.85 billion, +1.8% y/y, estimate $3.82 billion

  • Resources revenue $2.50 billion, +3.4% y/y, estimate $2.54 billion

Bookings $19.32 billion, -1.9% y/y, estimate $20.66 billion

  • Consulting new bookings $10.26 billion, +13% y/y, estimate $9.54 billion
  • Managed Services new bookings $9.06 billion, -15% y/y, estimate $11.12 billion

Gross margin 32.8% vs. 32.9% y/y, estimate 32.9%

Free cash flow $3.60 billion, +2.9% y/y

Operating cash flow $3.79 billion, +2.8% y/y, estimate $3.06 billion

Snapshot of 4Q forecast:

Sees revenue $17.75 billion to $18.4 billion, estimate $18.47 billion (Bloomberg Consensus)

Sees revenue +1% to +5%

Full-Year Forecast:

Sees revenue +3% to +4%, saw +3% to +5%

Sees adjusted EPS $13.78 to $13.90, saw $13.65 to $13.90

Sees effective tax rate 24% to 25%, saw 23.5% to 25.5%

Still sees operating cash flow $11.5 billion to $12.2 billion

Still sees free cash flow $10.8 billion to $11.5 billion

Beyond earnings, one major issue plaguing Accenture is investor confidence in the business model. Morgan Stanley downgraded Accenture to Equal-weight from Overweight and slashed its price target to $177 from $240, arguing that the anticipated boost to IT services spending from artificial intelligence investments has yet to materialize, as enterprises continue to prioritize AI projects over traditional discretionary technology spending.

Crucially, "we are not seeing the budget growth inflection we had previously expected," the analysts wrote.

Morgan Stanley is not the first to sound the alarm on declining IT consulting demand. In March, Jefferies analyst Surinder Thind told clients there was limited evidence of a recovery in customer appetite, directly contradicting management's upbeat commentary.

Accenture shares crashed the most on record, down 16% in the early cash session. 

What goes up must go down. 

Emergence of OpenAI's ChatGPT (news headlines) vs. ACN stock price. 

According to Bloomberg data, Wall Street analysts have 17 "Buy" ratings, 12 "Neutral" ratings, and zero "Sell" ratings on the stock. The 12-month average price target is $236.

Thind called the latest earnings disappointing. "Questions around the resiliency of demand in an AI-first world are likely to be amplified," he said, adding, "especially in light of recent advancements in AI models and agentic capabilities."

Tyler Durden Thu, 06/18/2026 - 10:10

Both Parents Work Full-Time In Majority Of Families, Census Data Show

Both Parents Work Full-Time In Majority Of Families, Census Data Show

Authored by Zachary Stieber via The Epoch Times,

Both parents work full-time in more than half of couples with children under 18, according to newly analyzed data.

Fifty-two percent of couples comprised of a mother and father work full-time jobs as of 2025, according to the Pew Research Center analysis of data from the U.S. Census Bureau released on June 16.

That percentage is an increase from 46 percent in 2015 and 31 percent in 1975.

Black mothers are still the most likely to be in a couple where both she and the father work, according to an analysis broken down by race. Sixty percent of black mothers are in such a partnership, down slightly from 64 percent in 2000.

Majorities of white, 54 percent, and Asian, 52 percent, women with children are for the first time in couples comprised of two working parents. Hispanic women are still more likely to be in a couple with only one working parent.

Mothers with lower levels of education are the most likely to be in a couple in which the dad works full-time, and the mom is not employed, according to the analysis.

That figure was 30 percent for mothers with, at most, some college education, compared to 21 percent for mothers with bachelor’s degrees and 11 percent for mothers with postgraduate degrees.

Across all couples with minor children, the percentage in which the father works full-time and the mother is not employed declined from 42 percent in 1975 to 23 percent in 2025.

In another 15 percent of couples, the father works full-time and the mother works part-time. In five percent, the father works part-time or is not employed, and the mother has a full-time job. And in the remaining five percent, there is some other arrangement.

Many parents view their family’s financial situation as positive, according to a Pew survey conducted in March, provided the mother works at least part-time. For parents in couples where the dad works full time, and the mother does not have a job, only 19 percent said their financial situation is positive, and 41 percent said it is negative.

Adults in those couples were the most likely to say that the work arrangement was positive for their children’s well-being. Eighty-five percent did. Just 49 percent of parents in couples where both mothers and fathers work full-time answered the same.

Some 52 percent of the respondents also said their job makes it harder to be a good parent, and 45 percent said that being a parent has made it difficult to advance at work.

Additionally, 62 percent of mothers who work full-time expressed frustration with balancing work and family responsibilities, compared with 47 percent of fathers who work full-time.

Tyler Durden Thu, 06/18/2026 - 10:00

"The Impact was Devastating": Chicago's Cross-Burning Was Set By Liberal, Anti-Trump Protester

"The Impact was Devastating": Chicago's Cross-Burning Was Set By Liberal, Anti-Trump Protester

Authored by Jonathan Turley,

After the Southern Poverty Law Center scandal of actually funding and encouraging racist protests, it appears that at least one individual has created his own orchestrated racist incident.

In Chicago (where Jussie Smollett committed his infamous racist hoax), a burning cross was denounced by Mayor Brandon Johnson as a sign of the racism in society.

Johnson, however, refused to address the fact that the cross burning was actually the work of an anti-Trump liberal student.

University of Illinois senior Merlin Lu said it was never intended as a racist symbol, but the question is whether it could still be charged as a hate crime.

In posting a reward for the culprit soon after the incident, Rev. Michael Pfleger declared that “this bold rise of racism must be condemned by every race, faith community, and Chicagoan as was done with the swastika and treated as a hate crime.”

It turns out that this was not evidence of the rise of racism but another possible hoax.

Lu bizarrely claimed that he was unaware that a burning cross had racist connotations and insisted that there was no racist message intended.

Others suspected that this was a type of false-flag effort to outrage the left.

Johnson later denounced the incident as a “symbol of hatred is one that we must continue to reject, and I wholeheartedly reject it. I can’t speak to anyone’s motives; I can only speak to the impact, and the impact was devastating.”

It seems curious that Johnson would not “speak to motives” when he knows that this was set by a leftist radical.

The question is whether it is still a hate crime under Illinois law. Under Section 12-7.1, the law states:

(a) A person commits hate crime when, by reason of the actual or perceived race, color, creed, religion, ancestry, gender, sexual orientation, physical or mental disability, citizenship, immigration status, or national origin of another individual or group of individuals, regardless of the existence of any other motivating factor or factors, he or she commits assault, battery, aggravated assault, intimidation, stalking, cyberstalking, misdemeanor theft, criminal trespass to residence, misdemeanor criminal damage to property, criminal trespass to vehicle, criminal trespass to real property, mob action, disorderly conduct, transmission of obscene messages, harassment by telephone, or harassment through electronic communications as these crimes are defined in Sections 12-1, 12-2, 12-3(a), 12-7.3, 12-7.5, 16-1, 19-4, 21-1, 21-2, 21-3, 25-1, 26-1, 26.5-1, 26.5-2, paragraphs (a)(1), (a)(2), and (a)(3) of Section 12-6, and paragraphs (a)(2) and (a)(5) of Section 26.5-3 of this Code, respectively.

The notable language is “regardless of the existence of any other motivating factor or factors.” The inclusion of property damage could allow a charge to be brought.

The case could rekindle the debate over intent for threats. Many professors and pundits on the left have long argued that the standard should be how a message is received rather than how it is intended. That issue arose in the decision in Counterman v. Colorado, 600 U.S. 66 (2023), concerning the standard for the “true threats” exception to the First Amendment. In an opinion written by Justice Elena Kagan, the Court reversed the conviction. While rejecting an “objective” standard, the Court declared that such cases had to be based on evidence of the defendant’s state of mind under a “subjective standard.” Accordingly, the government must prove recklessness, but not necessarily intent: “The State must show that the defendant consciously disregarded a substantial risk that his communications would be viewed as threatening violence.”

Recklessness would be a dangerous standard for the defense of Merlin Liu. He insists that he was entirely clueless about what a burning cross represents in our culture. Yet, if Chicago does not bring a hate crime charge, it could be cited in future cases in suggesting that intent or “motivating factors” do matter in such cases.

I have favored stronger scienter or intent standards in true threat cases. It seems like a hate crime should, at a minimum, also be based on an intent to cause such alarm or fear. That does not mean that Liu’s defense of ignorance will work. However, in my view, prosecutors should have to show more than how others perceive a protest.

Unlike Johnson, the prosecutors and the Court will have to “speak to motivations” before this case is concluded.

Jonathan Turley is a law professor and the New York Times best-selling author of “Rage and the Republic: The Unfinished Story of the American Revolution.”

Tyler Durden Thu, 06/18/2026 - 09:20

Energy Cliff, Supply Chain Shock: The Toxic Cocktail Behind The Urgent Push For An Iran Deal

Energy Cliff, Supply Chain Shock: The Toxic Cocktail Behind The Urgent Push For An Iran Deal

The U.S.-Iran interim peace deal has been signed, and the normalization of the Strait of Hormuz is now beginning. Tanker traffic through the critical waterway is slowly resuming, though a full return to pre-war or near-pre-war energy flows could take months.

But behind the urgency to get the memorandum of understanding deal across the finish line were two uncomfortable realities.

First, President Trump recently met with oil and gas executives, who likely informed the administration that the conflict and the shuttered Hormuz maritime chokepoint were leading to an energy cliff that would materialize by mid-summer.

On Wednesday at the G7 Summit in France, Trump acknowledged the uncomfortable truth that SPRs used to offset lost Gulf energy production were being drained at an alarming rate.

"We run out of reserves in about four weeks," Trump told reporters.

The latest Department of Energy data showed Cushing, Oklahoma, stockpiles declined for the eighth straight week, taking inventories to just above 20 million barrels. That's the lowest inventories have been at the storage hub since October 2014, and takes us to what are considered essentially 'tank-bottoms', the point at which the hub is unable to fully operate.

Second, the physical disruption in global supply chains had begun spreading beyond energy flows and into shipping costs, threatening to transmit the Hormuz crisis into broader goods inflation.

Last month, UBS analyst Pierre Lafourcade warned, "Supply chain stress is rising at its fastest pace since the early pandemic." This prompted Lafourcade to re-launch the Global Supply Chain Stress Index.

Earlier this morning, Lafourcade warned in a new note that "supply chain stress spreads to shipping cost" and that "continues to rise."

He continued:

Our Global Supply Chain Stress Index has continued to deteriorate, despite the recent decline in energy prices. In our update mid-May (here), we noted that the index had worsened by roughly 1.2 standard deviations since the onset of the Middle East conflict. Figure 1 below shows the latest June reading, based on weekly data up to last Friday (with missing observations proxied by the prior month's values). The median of the 23 component series (blue line) now stands at 2.9 standard deviations—an increase of around 2½ standard deviations since the conflict began—and marks the highest level since May 2022. This reading predates the geopolitical developments of the past few days and so may well end up being a high watermark. But we suspect a sustained improvement across many indicators will likely require a tangible normalization in the flow of global energy shipments, not just a decline in prices driven by expectations of resolution alone.

Our Global Supply Chain Stress Index has After a slow reaction to the conflict, shipping costs are now accelerating The indicator is constructed as the cross‑sectional average of z-scored series—a first-order approximation to the data's first principal component. Figure 2 overleaf shows the contributions over the past four months. The indicator most directly capturing the supply-shock nature of the Hormuz bottleneck is our measure of seaborne oil and gas flows (shown on the right of the figure, with the sign flipped to indicate rising stress). All other components reflect the shock more indirectly. Oil and gas shipping volumes have dropped even more from the immediate post-closure lows, while the volume of other cargo shipping has bounced back somewhat from earlier lows (see here for our latest read on global tracking). Delivery times and air-freight costs deteriorated primarily in March and April, with little additional movement since. Initially, supply chain stress appeared relatively contained and concentrated in these indicators. However, shipping costs now seem to be responding with a lag: after little change in March and April, prices have ramped up noticeably in May and June to date, across all major reporters (Baltic, Harper Petersen, Drewry, and Freightos).ntinued to deteriorate, despite the recent decline in energy prices. In our update mid-May (here), we noted that the index had worsened by roughly 1.2 standard deviations since the onset of the Middle East conflict. Figure 1 below shows the latest June reading, based on weekly data up to last Friday (with missing observations proxied by the prior month's values). The median of the 23 component series (blue line) now stands at 2.9 standard deviations—an increase of around 2½ standard deviations since the conflict began—and marks the highest level since May 2022.

This reading predates the geopolitical developments of the past few days and so may well end up being a high watermark. But we suspect a sustained improvement across many indicators will likely require a tangible normalization in the flow of global energy shipments, not just a decline in prices driven by expectations of resolution alone.

If SPRs are drained and supply chain stress keeps rising, the global economy moves from a manageable disruption to a stagflationary shock. That would send energy prices higher, create weaker fuel demand, lead to margin compression for companies, and eventually risk a recession.

The sequence of disasters that could've unfolded:

1. Energy prices reprice violently higher

2. Shipping costs feed into goods inflation

3. Corporate margins get squeezed

4. Consumers get hit

5. Central banks face the stagflation trap

6. Emerging markets falter

7. Global equities shift into recession pricing

These two pressures help explain why the Trump administration moved urgently to secure an MoU with Iran to reopen the Strait of Hormuz. The immediate goal was to normalize tanker flows and avert an energy cliff as SPR buffers came under pressure. The second objective is to stop the Hormuz disruption from spilling deeper into global supply chains, where rising shipping costs, longer transit times, and tighter effective vessel capacity were beginning to transmit the shock beyond energy markets and into the broader global economy.

Professional subscribers can read more about the global supply chain and the Strait of Hormuz on our new Marketdesk.ai portal. 

Tyler Durden Thu, 06/18/2026 - 09:00

Continuing Jobless Claims Hit 3-Month-Highs

Continuing Jobless Claims Hit 3-Month-Highs

The number of Americans filing for unemployment benefits for the first time fell from 230k (4 month highs) to 226k (vs 225k exp) last week - elevated but still within the range of the last four years...

Source: Bloomberg

Pennsylvania and Oregon saw the largest rise in initial claims last week while Ohio and Illinois saw the biggest decline...

Meanwhile, continuing jobless claims rose back above 1.8 million Americans - the highest print in 3 months - but still well off cycle highs near 2 million in Q4 2025...

Source: Bloomberg

The bottom line is that while initial claims are rising, they remain low by historical standards and continue to run below year-ago levels, reinforcing the more hawkish 'labor market is resilient' framework introduced yesterday.

Tyler Durden Thu, 06/18/2026 - 08:36

Futures Rise, Oil Drops As Market Prices In Iran Deal For Yet Another Day

Futures Rise, Oil Drops As Market Prices In Iran Deal For Yet Another Day

Futures rebounded from the post-FOMC selloff, and oil prices fell as Trump signed the Iran MOU two days early to end the war in the Middle East (in the symbolic Palace of Versailles of all place) and some energy shipments began to transit the Strait of Hormuz. As usual, tech led the parade higher. As of 8:00am ET, S&P futures were up 0.6%, but off overnight session highs, partly unwinding a more than 1% decline after Kevin Warsh signaled the Fed may have to raise interest rates this year to contain inflation; Nasdaq gained 1.3%; pre-market all Mag 7 are higher led by AMZN (+1.2%), META (+1.1%) and NVDA (+1.1%), reversing some of yesterday’s losses. Intel shares jumped more than 8% in premarket trading after Trump said the firm struck a chipmaking deal with Apple (a rehash of previous news but to this Pavolvian market, everything seems to be brand new). Overnight, the biggest headline was that the US/Iran MOU was officially in effect (final deal within 60 days, waiver for Iran to export oil, a $300bn reconstruction fund, terminating all types of sanction, per Axios). Bond yields are lower led by the long-end of the curve as 2y is still anchored by Fed commentary yesterday; 2y and 10y are -1bp and -4bp lower, respectively, the 10Y trading at 4.46%. The USD continues to climb with the DXY adding 53bp this morning. Brent slid 1.4% to around $78.50 a barrel and touched its lowest level since the start of the war while WTI fell -2.6% to $74.78; precious metals are largely flat this morning. US economic data calendar includes weekly jobless claims, June Philadelphia Fed business outlook (8:30am), May Leading Index (10am) and April TIC flows (4pm)

In premarket trading Mag 7 stocks are mostly higher (Nvidia +1%, Meta +0.5%, Tesla +0.3%, Amazon +0.2%, Microsoft -0.2%, Alphabet -0.5%).

  • Apple Inc. (AAPL) is up 0.6% after CEO Tim Cook told the Wall Street Journal that the iPhone maker plans to raise prices on its products to offset the increasing costs of memory and storage chips.
  • SpaceX (SPCX) falls 1.7%, set to extend the previous session’s drop, as it wraps up its first week as a public company following a record-breaking listing.
  • Accenture (ACN) tumbles 11% after the IT services company gave a revenue forecast for the fourth quarter that fell short of Wall Street’s expectations.
  • Albemarle Corp. (ALB) is up 1.8% after Citi raised its recommendation to buy from neutral on expected higher lithium prices.
  • Enphase Energy (ENPH) rises 4.1% after Barclays raised the recommendation on the company to equal-weight from underweight, citing its push into selling solid-state transformers to data centers.
  • Hive (HIVE) is up 15% after its subsidiary BUZZ High Performance Computing announced a partnership with Bell Canada, Cohere and Hypertec to build AI infrastructure in Canada.
  • Iren Ltd. (IREN) gains 3.3% as Jefferies initiated coverage of the Bitcoin miner and data center operator with a recommendation of buy on artificial intelligence data center demand.
  • Pfizer (PFE) is down 1.6% after the drugmaker said Chief Financial Officer Dave Denton will step down and leave the company on Aug. 15 for a professional opportunity in consumer goods outside the pharmaceutical industry.
  • Rumble (RUM) jumps 15% after the online video network platform said it plans to operate two core business units: video platform Rumble and cloud and AI-infrastructure business Quake AI, formerly Northern Data.

Four big June events are now in the rear view mirror — the first FOMC of the Warsh era, an Iran deal, the SpaceX’s IPO, and the first CPI print over 4% in 3 years. And yet, nothing appears able to dent the ongoing market meltup which is driven entirely by massive debt-funded capex spending into a handful of chip stocks.  

Ahead of the last trading day of the week for US markets, the peace deal is reducing the risk of further energy-supply disruptions. Stocks have largely shrugged off the turmoil and continued to notch record highs on the back of relentless enthusiasm for AI. Equity markets have come through the tests posed by the debut of SpaceX, Kevin Warsh’s first meeting as Fed chair and the US-Iran peace deal fairly unscathed, said Raphael Thuin, head of capital market strategies at Tikehau.

“With the MOU now signed, there’s reason to believe that we may be close to or past peak inflation,” Thuin said. “The market will be able to concentrate on earnings again, like for Micron next week.”

Bond investors, however, face the prospect of lingering risks that may keep the higher-for-longer rates narrative intact. Even though US gasoline prices have dipped below $4 a gallon for the first time since March, energy costs have only been one factor in keeping inflation stubbornly above the Fed’s target.

US gasoline prices dipped below $4 a gallon for the first time since March, providing relief to consumers after global supply disruption sent fuel costs soaring. In contrast, inflation pressures are likely to hit people in the pocket if they want to buy a new iPhone later this year, with Apple’s Tim Cook telling the Wall Street Journal that the company plans to raise prices to offset surging memory and storage chip costs

Despite lower oil prices, front-end Treasury yields remained at their highest level since February 2025, with traders cementing bets for a September US rate hike. In the UK, the yield on two-year gilts jumped six basis points to 4.2%, while the Bank of England kept guidance that it “stands ready to act” on inflation and left its key rate unchanged. The dollar extended gains.

A quick look back at the Fed decision: Wednesday’s Fed decision marked the fourth consecutive meeting in which policymakers left rates unchanged. Officials described economic growth as “solid” and highlighted strong productivity gains and capital investment, while making clear that inflation has become a greater concern than labor-market weakness. Warsh has been critical of over-communication and poor forecasting by the Fed, and the new regime is moving away from explicit forward guidance - investors can no longer rely on central bank signals and will have to price in policy uncertainty. The S&P 500 has historically faced challenges following changes in leadership at the Fed.  

“Half the committee is expecting rate hikes this year, which is a real shot across the bow at the market,” said Bob Michele, chief investment officer and global head of fixed income at JPMorgan Asset Management. “I think they’re getting ready for rate hikes.”

As for SpaceX, the company is seemingly sucking retail investors back into equities, flows into US equity ETFs have risen rapidly, notching the second highest-ever monthly flow, Bloomberg notes. Based on the price target of an initiation of coverage by Arete analyst Andrew Beale, SpaceX gets an implied $5.3 trillion valuation by end of 2027.

European stocks are missing out on the rally, with the Stoxx 600 down by 0.4%, dragged lower by the mining and autos sectors. Here are the biggest movers Thursday:

  • Edenred shares soar as much 18%, hitting their highest level since early November, after the payment solutions firm confirmed it has been approached by investment funds in the wake of a report of takeover interest from BC Partners
  • Generali shares rose as much as 3.3%, the most in 14 months, after newspaper Il Sole 24 Ore reported that UniCredit has informally proposed exchanging a 10% stake held by the Del Vecchio family holding Delfin in the insurer with its own shares
  • Oxford Instruments rises as much as 4.4% as Peel Hunt upgrades to buy from add and installs a new Street-high price target, based on durability of growth and scope for further operating leverage
  • Man Group shares rise as much as 3.4% to the highest since 2011 as BNP Paribas analysts upgrade their rating on the hedge fund manager to outperform from neutral and raise their target price
  • Informa shares rise as much as 3% as Morgan Stanley said the company has navigated the first five months of its financial year well, with strong results from its Live B2B Events and Academic Markets units
  • SSP advances as much as 5.1%, to the highest in eight weeks, after Davy initiates on the airport-focused food and beverage outlet operator with an outperform recommendation and 225p price target
  • Skistar climbs as much as 11%, the most since March 2025, after reporting third-quarter results which DNB Carnegie says show good cost mitigation and decent future pre-bookings
  • Tesco shares fall as much as 3.7% to their lowest level in two weeks after the UK’s biggest supermarket reported earnings which missed analyst expectations for like-for-like sales
  • Carrefour drops as much as 6.6% as JPMorgan places the French supermarket operator on a negative catalyst watch, saying first-half results on July 23 “might turn out to be a downgrade event”

Earlier in the session, Asian stocks rose as oil prices eased after President Donald Trump signed an interim peace deal with Iran to reopen the Strait of Hormuz. The MSCI Asia Pacific Index climbed as much as 0.8% to set an intraday record, boosted by gains in tech names including SK Hynix and Samsung Electronics. South Korea led advances in the region, with shares also rising in Taiwan and Japan. Crude prices continued to fall after Trump said a memorandum of understanding with Iran has taken effect, helping to ease inflation concerns for energy importing countries and offsetting hawkish signals from the Federal Reserve. A gauge of tech shares in Asia rose to a new high.Elsewhere in Asia, central banks in Indonesia and the Philippines — two economies hit hard by the sharp increase in global oil prices following the Iran war — both hiked their policy rates on Thursday. Indonesian stocks held losses, while Philippine shares pared gains.

In FX, the Bloomberg Dollar Spot Index reverses an earlier decline, sending the euro below $1.15. The BOE, Switzerland, and Norway’s central banks all held rates. 

In rates, treasuries curve-flattening sparked by Wednesday’s hawkish Fed meeting extends as 2-year rises back toward highest levels since February 2025 — and within 25bp of the 10-year — while 30-year is more than 6bp lower on the day. Treasury 2-year is more than 2bps cheaper on the day while 10-year is nearly 3bp richer near 4.46% after touching 4.44% during London morning. US 2s10s and 5s30s spreads are 5bp and 6bp tighter respectively, after narrowing 8bp and 11bp to multi-month lows Wednesday. UK front-end underperforms, holding losses after Bank of England held interest rates at 3.75% as it said the recent fall in oil prices was “encouraging.” UK 2-year, 6bp cheaper on the day, had muted reaction to Bank of England policy announcement decided by 7-2 vote.

In commodities, WTI crude oil futures are down 2%, off session lows after Iranian President Masoud Pezeshkian released details on the text of the memorandum of understanding ending US attacks. Brent slid 1.4% to around $78.50 a barrel and touched its lowest level since the start of the war as three laden oil vessels controlled by Saudi Arabia’s state tanker giant switched on their signals in the Gulf of Oman after being stuck inside the Persian Gulf since the conflict began. 

US economic data calendar includes weekly jobless claims, June Philadelphia Fed business outlook (8:30am), May Leading Index (10am) and April TIC flows (4pm)

Market Snapshot

Top Overnight News

  • An impending wave of oil that’s been trapped inside the Strait of Hormuz is set to be unleashed on Asia, suddenly swamping a region that had managed to make up for lost supply in recent weeks. BBG
  • The average price of U.S. gasoline fell below $4 a gallon on Thursday for the first time in months, after Iran and the United States signed a preliminary agreement to cease hostilities for 60 days and reopen the Strait of Hormuz. The national average for a gallon of regular gasoline fell to a fraction of a penny below $4, down from $4.03 the day before, according to the AAA motor club. NYT
  • The MSCI China Index is on the cusp of a bear market, pressured by weakness in tech and consumer stocks. Alibaba and Tencent were the biggest drags on the day. BBG
  • The Bank of England held interest rates at 3.75% as it said the recent fall in oil prices was “encouraging.” Two of the nine policymakers voted for an immediate quarter-point hike over concerns of persistent inflation: BBG
  • The SNB left its key rate at zero as expected and said it retained its heightened readiness to sell the franc. Separately, the Swiss government trimmed its growth predictions for 2026 and next year, while slightly raising its inflation outlook. BBG
  • Brussels has opened communication channels with the Kremlin in recent weeks to scope out the potential for talks to end the war in Ukraine, as European capitals debate whether to engage directly with Russian President Vladimir Putin. FT
  • Norges Bank left its policy rate unchanged at 4.25%, as expected, but said it would likely be necessary to hike at one of the forthcoming meetings. Norges Bank
  • The U.K.’s unemployment rate inched down in the three months through April while wage growth remained flat, with continued weakness in the labor market reinforcing expectations that the Bank of England will keep interest rates on hold. WSJ
  • Microsoft Corp. has built a big business selling AI models to Chinese companies despite the growing rivalry between the US and China over artificial intelligence. ByteDance Ltd. has generally been Microsoft’s biggest AI customer in recent years, largely using OpenAI models, and is on track to spend more than $1 billion a year on Microsoft AI and cloud services. BBG
  • U.S. President Donald Trump said in a Truth Social post on Thursday that Apple has agreed to work with Intel to design and manufacture its ‌chips in the United States. RTRS

Iran Headlines

  • Technical talks between the US and Iran will be held in Zurich on Friday, Al Hadath reported citing sources. Talks will include the legal aspects related to lifting Iranian sanctions, the issue of frozen funds and the Iranian nuclear file. Qatar, Pakistan, Turkey, and Saudi Arabia will also attend the talks. An unannounced negotiation session will discuss issues related to Lebanon and Hezbollah.
  • The fifth round of US-Iran negotiations will discuss Israel's withdrawal along with a timetable for the experimental zone, Al Hadath reported citing a Lebanese source. The source added that the US-Iranian agreement will intensify pressure on Israel to gradually withdraw and that there will be no retreat from restricting weapons to the state and deploying the army in the south. Lebanon is proceeding with direct negotiations with Israel.
  • Swiss Foreign Ministry confirmed that the US and Iran will meet on Friday for initial talks on MoU execution.
  • The Swiss government, following the Iranian commentary, said the plan as it stands is still for the US, Iran, Pakistan and Qatar to meet on Friday in Switzerland to commence talks.
  • US War Secretary Hegseth said they are to review where the right place for basing is, when the Strait of Hormuz opens and are prepared to resume strikes and blockade if Iran does not comply with MoU.
  • US official said the Iran MoU was signed digitally on Sunday by US VP Vance and Iranian Speaker Ghalibaf, which was witnessed by US President Trump, while the US official said Iran MoU was signed on Wednesday by US President Trump and Iranian President Pezeshkian.
  • US official says that Iran is to arrange safe, no-charge passage through Strait of Hormuz for 60 days, according to CNBC.
  • Iranian Foreign Ministry spokesperson Baghaei said the MoU between the US and Iran was decided to be signed digitally, while the plan for negotiating teams in Geneva remains in place, but there will be no signing ceremony in Switzerland. Baghaei stated that the 60-day period had started and that Israel's continued attacks on Lebanon would be regarded as a breach of commitments, while he also commented that the US has begun lifting the blockade on Iranian ships and that no enriched nuclear material will be sent abroad, and the dilution of nuclear material remains an option. Furthermore, he said Iran will reciprocate if the US fails to honour commitments, and that Iran is to charge fees for Strait of Hormuz safety services, as well as stated that Iran and Oman are to manage the Strait of Hormuz security, and noted that Switzerland talks with the US are not yet certain.
  • Iranian Foreign Ministry spokesman said Israel's continued attacks on Lebanon would be regarded as a breach of commitments. The spokesman also said that the 60-day period starts today, according to the text.
  • Iranian Parliament Speaker and top negotiator Ghalibaf said the Strait of Hormuz will not return to pre-war conditions, but this does not mean acting against international laws or maritime navigation, while he added that payment for services through the Strait of Hormuz has been established in the MoU and that USD 300bln has been allocated to be invested in Iran, part of which will be spent on reconstruction. Furthermore, he said Iran's action is contingent on US compliance, with Iran to pursue action-for-action policy, as well as separately commented that Tehran can target ships entering Hormuz if needed, and that Tehran has sovereign rights to charge Hormuz tolls.
  • Source on Telegram posted that several IRGC boats were engaged in unspecified activity in the Strait of Hormuz, and that a US ship broadcast a warning message in Persian to tell them to cease operations and return to port, or else the US Navy would attack them.
  • An Israeli official said Israel has no intention of backing down on its positions and are holding stubborn negotiations with the US over its presence in southern Lebanon.
  • Israeli military operations reportedly continue in Lebanon despite the MoU, while Israel opposes Lebanon ceasefire terms in the US-Iran agreement, according to Al Jazeera.

A more detailed look at global markets courtesy of Newsquawk

APAC stocks traded mixed as the region reflected on recent key events, including the hawkish FOMC and Fed chair Warsh's first presser, in which the Fed kept rates unchanged, removed forward guidance, emphasised price stability, and provided hawkish dot plots. This triggered selling in stocks, treasuries and gold, while it boosted the dollar and yields, with money markets now fully pricing in an October hike. Nonetheless, some of the moves have since been pared, to varying degrees, as oil prices gradually declined following the announcement that the US and Iran have signed the MoU for ending the war, which is now in effect, but with the planned talks on Friday in Switzerland, said to not yet be certain. ASX 200 was subdued with most sectors in the red and the declines were led by tech and miners.
Nikkei 225 extended on record highs to surpass the 71,000 level as manufacturers benefited from lower oil prices and optimism of the reopening of shipping in the Strait of Hormuz. KOSPI rallied and breached the 9,000 level for the first time amid strength in Samsung and SK Hynix. Hang Seng and Shanghai Comp were lower with underperformance in Hong Kong as the hawkish FOMC and increased prospects of a rate hike this year, pressured the local benchmark, given that any rate hike in the US would force the HKMA to move in lockstep with the Fed to defend the USD/HKD peg.

Top Asian News

  • Japan's chief cabinet secretary Kihara said the Japanese government is monitoring FX markets closely and will respond to FX moves as needed.

European bourses (STOXX 600 -0.5%) start Thursday's session on a mixed footing despite the US and Iranian presidents digitally signing the MoU. Germany's DAX 40 (+0.1%) is the clear outperformer, while the FTSE 100 (-0.8%) is the laggard as multiple companies trade ex-dividends. European sectors highlight a negative bias. Technology (+0.3%), Industrial Goods & Services (+0.6%) and Telecoms (+0.1%) are the only sectors in the green. To the bottom lies Optimised Personal Care (-1.8%), Basic Resources (-1.9%), and Autos (-1.3%).

Top European News

  • Germany's Ifo cut its German economic growth forecast for 2027 to 0.8% (prev. exp. 1.2%). Inflation expected at 2.9% this year and 2.7% in 2027.
  • Swiss Government cuts its 2026 GDP growth forecast to 0.9% (prev. 1.0%) and 2027 GDP growth forecast to 1.6% (prev. 1.7%, long-term avg. 1.8%).

FX

  • G10s were initially mixed against a lacklustre USD. However, as the morning progressed, the Dollar found some strength and surpassed the highs made post-FOMC; today’s peak is at 100.63. USD/JPY aggressively sold off earlier in the session from 160.80 to 160.48 but has since pared entirely.
  • GBP was initially flat, but now posts modest losses against the USD. The BoE announcement is due today, where the MPC is widely expected to keep rates on hold in a 7-2/8-1 vote split as recent data and energy moderation support the narrative that bank rate is restrictive. With markets assigning a 95% probability of no-change today, attention will be on the vote split. While consensus is for 7-2/8-1, hawkish dissent from Chief Economist Pill and potentially one or two more policymakers remains possible, and would likely spur a hawkish reaction. In addition to the BoE, GBP will also digest results of the Makerfield by-election which will likely see Labour candidate Burnham emerge as the winner, and challenge incumbent Starmer.
  • Norges Bank was broadly as expected with a fleeting kneejerk lower in NOK, the unwinding of tightening bets by c. 15% of market participants. The 2026 core CPI view was maintained and the 2027 one was trimmed modestly, as expected, while forecasts and commentary still show that inflation is “too high” and the Governor outlined that new information shows “inflation pressures are slightly stronger than we had anticipated earlier”. As such, the Norges Bank points to tightening ahead, roughly in line with market expectations. EUR/NOK +0.3%.
  • SNB kept rates unchanged in a mostly as-expected meeting. EUR/CHF is firmer today, potentially surrounding the fact that commentary around energy/raw materials suggests that the new forecasts do not account for the moderation in energy seen recently; over the medium term, sparking a return to concerns around inflation being too low in Switzerland. As such, EUR/CHF -0.2%.

Fixed Income

  • Global fixed benchmarks are trading on either side of the unchanged mark, with price action lacklustre since the European cash open. It appears that fixed benchmarks are taking a breather following this week’s hefty declines in yields, which comes amidst sustained pressure in the energy complex. On the geopolitical front, US-Iran have signed the MoU, which means the Strait of Hormuz is theoretically open for ships to pass through, whilst the US blockade will also be lifted.
  • USTs (-2 ticks) trades within a 109-09+ to 109-20+ range, and well off the lows seen overnight, which stemmed from a hawkish Fed on Wednesday. A full recap can be found on the headline feed, but in brief, the unchanged policy was accompanied by hawkish dot plots and the removal of the easing bias. From a yield perspective, the US 2s10s curve is flatter post-Fed, and currently holding around 27.5bps, a level not seen since Liberation Day (2nd Apr 2025). This has unsurprisingly been led by the short-end, following the hawkish Fed. However, should inflation begin to ease later this year, there is some chance that the spread begins to widen once again, with short-end yields reflecting a less hawkish Fed. The long end may also be affected, with focus on Chair Warsh announcing a dedicated task force to review the Bank’s balance sheet. Any hints of an acceleration of the roll-off would undoubtedly lead to a considerably steeper curve.
  • Bunds (-9 ticks) and Gilts (U/C) trade in line with peers. Focusing on UK paper, traders will await the BoE this afternoon and then the start of the Makerfield by-election. In brief, the BoE is expected to keep rates on hold at 3.75%, with a mixed vote split. Some see in a range of 8-1 to 6-3. Thereafter, attention shifts to domestic politics, whereby a Burnham victory could see him launch a leadership challenge; for reference, he is viewed as the worst candidate for Gilts. There is a full preview in the Research Suite for those interested.
  • France sells EUR 13.999bln vs exp. EUR 12-14bln 2.40% 2029, 3.25% 2032, 2.00% 2032 and 3.00% 2034 OAT.
  • Spain sells EUR 5.83bln vs exp. EUR 5-6bln 3.00% 2033, 3.40% 2036 and 4.90% 2040 Bono.

Commodities

  • Crude futures are softer, with WTI Aug'26 slipping below the USD 75/bbl mark (USD 73.42-75.75/bbl range) while Brent Aug'26 oscillates around a USD 78/bbl handle (USD 77.10-79.06/bbl band). US and Iranian leaders signed the MoU digitally, which has weighed on the energy complex. The deal allows for the immediate resumption of Iranian oil exports and possible access to a USD 300bln development programme, backed by sanctions waivers and unfreezing overseas funds. In exchange, Iran will never produce nuclear weapons. The MoU also confirmed earlier reporting that Iran's nuclear file will be deferred to talks for 60 days.
  • More recently, reporting by Al Hadath noted technical talks between the US and Iran will begin in Zurich on Friday, in which the legal aspects related to lifting Iranian sanctions, the issue of frozen funds and the Iranian nuclear file will be discussed. Attention remains on whether Israel will back away from fighting Hezbollah in southern Lebanon. An Israeli official said that Israel has no intention of backing down on its positions and is holding stubborn negotiations with the US over its presence in southern Lebanon. However, energy benchmarks were unreactive following those comments.
  • Spot gold has slightly pared back Wednesday's losses which were driven by a hawkish Fed meeting. After dipping to a trough of USD 4219/oz yesterday, the yellow metal ventured higher throughout the Asia-Pac session and reached USD 4330/oz at best this morning.
  • 3M LME Copper gapped lower and fell to a trough of USD 13.67k/t post-FOMC. In brief, the Fed held rates unchanged at 3.50-3.75%, however, the SEP highlighted a hawkish bias. 3M LME Copper has since traded rangebound, holding in a USD 13.67k-13.78k/t band.
  • Persian Gulf Petrochemical Industries CEO said 89% of damaged petrochemical units returned to production, and the process of redesigning and strengthening production capacity is underway, ISNA reported.
  • Three Saudi Arabian-flagged supertankers laden with a combined 6mln barrels of crude sailed through the Strait of Hormuz on Thursday, according to shipping data.
  • China's State Planner said effective at midnight June 18th, domestic gasoline and diesel prices will be cut by CNY 515/t and CNY 495/t, respectively.

Central Banks

  • The Bank of England held interest rates at 3.75%, as expected, as it said the recent fall in oil prices was “encouraging,” Two of the nine policymakers voted for an immediate quarter-point hike over concerns of persistent inflation. The committee lowered its estimate of peak inflation to 3.25% in the fourth quarter of this year, below the 3.6% it had projected in April.
  • The SNB held rates unchanged at 0.00%, as expected. The Bank stated that the readiness to intervene in FX is higher and that monetary policy is appropriate to keep inflation within the range consistent with price stability. On inflation, the Bank stated that medium-term inflationary pressure, however, is virtually unchanged compared with the last monetary policy assessment.
  • SNB Chairman Schlegel said that monetary policy continues to have an expansionary effect. Geopolitical uncertainty remains, risks of strong upward pressure on the CHF remains. "If necessary, we therefore have an increased willingness to intervene..." in FX.
  • The Norges Bank held rates unchanged at 4.25%, as expected. The Bank stated that it will likely be necessary to raise the policy rate further at one of the forthcoming monetary policy meetings. Governor Bache stated in the release that inflation is too high and that new information indicates that inflation pressures are slightly stronger than we had anticipated earlier. The Bank's MPR was also revised higher, forecasting just above 4.5% at the end of 2026.

Ukraine geopol

  • Russia's Defence Ministry said 555 Ukrainian drones were shot down over Russian areas overnight, according to IFX.
  • Russia attacked Kyiv with missiles and explosions heard in the capital, while it was separately reported that several Moscow airports have halted flights and Moscow's mayor announced that drones hit an oil refinery in a massive attack, according to TASS.

US Event Calendar

  • 8:30 am: Jun 13 Initial Jobless Claims, est. 225k, prior 229k
  • 8:30 am: Jun Philadelphia Fed Business Outlook, est. 10, prior -0.4
  • 8:30 am: Jun 6 Continuing Claims, est. 1789k, prior 1795k
  • 10:00 am: May Leading Index, est. 0.1%, prior 0.1%
  • 4:00 pm: Apr Total Net TIC Flows, prior 150.7b
  • 4:00 pm: Apr Net Long-term TIC Flows, prior 81.3b

DB's Jim Reid concludes the overnight wrap

Kevin Warsh’s first appearance as Fed Chair yesterday proved to be a momentous one, with a hawkish dot plot and Warsh’s inflation-fighting rhetoric leaving a sense that rate hikes are firmly under consideration. This shift led investors to fully price in a Fed hike by October, with the repricing weighing on risk assets and sending the S&P 500 -1.21% lower. However, futures are erasing most of this decline overnight following news yesterday evening that US and Iranian leaders signed an MoU to end the war.

Starting with the Fed, while the FOMC held rates steady for the fourth meeting in a row, the updated dot plot saw nine of eighteen participants pencil in at least one hike by year-end, and six expecting two hikes or more. A much-shortened post-meeting statement not only dropped the earlier dovish-leaning forward guidance but also included an unambiguous commitment to “deliver price stability”. Warsh then focused on inflation-fighting credibility in his press conference. At the outset he acknowledged the now 5-year-long upside miss on inflation, before repeatedly noting the importance of the Fed delivering on its “price stability” mandate. So, while the new Chair eschewed any policy guidance, including by not submitting his own forecast to the dot plot, he did not push back against the hawkish dot plot signal and did not lean into any potential dovish arguments. Separately, Warsh announced the establishment of task forces in five areas, including communications and the Fed balance sheet.

In all, the meeting left an undeniably more hawkish Fed tone. While our US economists maintain their baseline view that the Fed is likely to keep rates steady, they note that a Fed that does not rely on forward guidance might prove to be nimbler, setting up the potential for earlier rate hikes than anticipated. 

That shifting Fed rhetoric led to a dramatic fed funds repricing, with chances of a September hike rising from 36% to 80% by yesterday’s close and 38bps of hikes being priced in by year-end (+17.2bps on the day). In turn, 2yr Treasury yields (+13.1bps) saw their largest increase in over a year to a 15-month high of 4.19%. However, the 10yr yield was up by a more moderate +4.9bps while 30yr yields actually ended the day -1.2bps lower. That marked the sharpest daily flattening in the Treasury curve since April 9 last year, when Trump paused the Liberation Day tariffs following a sell-off in Treasuries.

The sharp Fed repricing weighed on risk assets, with the S&P 500 (-1.21%) and the NASDAQ (-1.34%) sliding, having been little changed pre-FOMC. The Mag-7 (-2.82%) led the decline, but the losses were broad as the S&P 500 saw the most daily decliners (429) so far this year. The aggregate decline would have been even worse were it not for the Philly semiconductor index (+1.38%) recovering after Wednesday’s losses. The rates repricing also weighed on assets such as gold (-1.71%) and Bitcoin (-2.15%). On the other hand, the dollar (+0.55%) gained against all G10 currencies.

However, this sell off has partially reversed overnight following news shortly after the US close that the Presidents of the US and Iran had electronically signed an interim deal to end hostilities, with this MoU coming into effect. The signing had initially been expected on Friday, but Axios reported earlier yesterday that this may be brought forward. According to reports, the 14-point MoU foresees a rapid re-opening of the Strait of Hormuz, with an extendable 60-day period to negotiate a final deal that would cover nuclear issues and broad sanctions relief. The deal also envisages a $300bn fund for the "reconstruction and economic development" of Iran, though Trump stressed yesterday that the US will not be investing in Iran and that Iran would benefit only if it “behaves”. Following the MoU signing, Brent crude is -1.85% lower at $78.08/bbl as I type, more than reversing a +0.75% rise yesterday.

This has led to a positive backdrop for major Asian markets this morning. The Nikkei (+1.82%) and the KOSPI (+1.87%) are leading the gains and pushing to new highs, supported by strong advances in semiconductor stocks. Elsewhere, China’s CSI (+0.12%) and Shanghai Composite (-0.37%) are mixed, while the Hang Seng (-1.70%) is underperforming. Australia’s S&P/ASX 200 (-0.51%) is trading a little lower. Outside Asia, futures on the S&P 500 (+0.70%) and Nasdaq (+1.09%) are recovering most of Wednesday’s losses, but those on the STOXX 50 (-0.60%) are catching down to the earlier decline on Wall Street. Meanwhile, 10yr Treasury yields are down -3.9bps to 4.45% as I type.
In other corners of the market, the Japanese yen is largely unchanged, after falling -0.14% yesterday to a post-2024 low of 160.65 against the dollar. However, that decline was smaller than for other G10 currencies, with the restrained moves coming as the yen reached levels that triggered FX intervention back in late April.

Earlier yesterday, European equities advanced for a second day amidst optimism over the US-Iran deal. The Stoxx 600 (+0.52%) and Italy’s FTSE MIB (+0.31%) reached fresh highs, while the DAX (+0.10%) and FTSE 100 (+0.14%) made smaller advances. European bonds were mixed, with 10yr yields on bunds (-0.2bps), OATs (+0.3bps), BTPs (-0.7bps) little changed, while front-end yields moved slightly higher, with those on 2yr bunds up +2.1bps. Investors priced 32bps of ECB hikes by year end (+0.7bps yesterday), with ECB’s Simkus saying he expects “at least one more” rate hike by the ECB and that it’s important to cap inflation expectations.

Gilts were the notable outperformer in the rates space as investors looked forward to today’s Makerfield by-election, with the 10yr yield down -3.7bps to 4.7%. Greater Manchester's Mayor Andy Burnham is standing for the governing Labour Party and is widely expected to win, with results of the by-election expected in the early hours UK time tomorrow. This election could have important implications for markets as Burnham has said he'd stand in a leadership contest to replace incumbent UK Prime Minster Keir Starmer, with Polymarket now pricing a 77% likelihood of Burnham becoming PM by year-end. Burnham has said in the past that Britain shouldn't be "in hock" to the bond markets and suggested looser fiscal policies. However, Burnham has since committed to keeping the fiscal rules of the current government, leading investors to reduce the risk premium that had emerged in gilts and pound sterling.

Otherwise in the UK, the other main event today will be the BoE decision. Investors widely except the central bank to keep rates unchanged, with attention more focused on the vote split (our economists expect 7-2), and any evolution in guidance. This has come against a backdrop of still-sticky inflation, although yesterday’s dovish inflation print for May should boost the MPC’s confidence to buy more time. The print saw headline (+2.8% y/y vs +3.0% y/y expected) and core CPI (+2.6% y/y vs +2.7% y/y) miss expectations, though services (+3.7% y/y vs +3.6% y/y) fell in line with forecasts.

Reviewing yesterday’s other data, we saw a beat for US retail sales in May, with headline retail sales up +0.9% m/m (vs +0.6% m/m expected) and with retail control rising +0.7% m/m (vs +0.4% expected). With core goods CPI having eased in May, the beat for retail control was a real one rather than just due to higher prices.

Finally, rounding off yesterday’s central bank news, Sweden’s Riksbank left its policy rate unchanged at 1.75% as expected, but raised its policy rate forecast for year-end up 5bps to 1.82%.

To the day ahead now, in addition to the BoE, the SNB and Norges Bank will also hold their policy decisions. A slate of second-tier data releases includes the US June Philadelphia Fed business outlook, May leading index, initial jobless claims, UK unemployment rate, Italy April current account balance and Eurozone April construction output. Finally, today will see the start of the European Council summit (through June 19). 

Tyler Durden Thu, 06/18/2026 - 08:28

Speculation About A SpaceX–Tesla Merger Is Already Growing

Speculation About A SpaceX–Tesla Merger Is Already Growing

SpaceX’s record-breaking IPO has fueled speculation that Elon Musk could take an even bigger step: merging SpaceX with Tesla to create a roughly $4 trillion technology conglomerate spanning rockets, AI, satellites, electric vehicles, robotics, energy, and social media, according to a new report from the New York Times

The idea has gained traction among investors, analysts, and even SpaceX executives. Tesla and SpaceX already share personnel, collaborate on major projects, and have business ties through AI development, data centers, batteries, and vehicle sales.

Because Musk controls SpaceX and is Tesla’s largest shareholder, any merger would effectively be a deal with himself, raising concerns about conflicts of interest and shareholder lawsuits. However, legal experts say Texas corporate law—where both companies are now incorporated—makes such challenges difficult. Shareholders generally need to own at least 3% of a company’s stock to sue, a threshold that would require roughly $45 billion in Tesla shares.

The Times notes that approval would still require support from two-thirds of Tesla shareholders. Musk controls about 20% of Tesla’s voting power, and many investors have historically backed his initiatives. Tesla’s board has also frequently aligned with Musk, while SpaceX recently added longtime Musk associate Roelof Botha to its board.

Supporters argue a merger could unlock significant synergies. Tesla’s expertise in chips, AI, and data-center construction could complement SpaceX’s ambitions in orbital infrastructure, satellite communications, and space-based computing. Ark Invest, which owns shares in both companies, has said the combination makes strategic sense, though it would prefer Tesla’s self-driving taxi business to mature first.

SpaceX President Gwynne Shotwell has acknowledged potential benefits, saying a merger could simplify Musk’s responsibilities and noting clear overlaps between the companies’ futures: “There’s no question that there are synergies between Tesla and SpaceX in our futures.”

Opponents could challenge the deal through securities-fraud claims, antitrust scrutiny, or national-security concerns, particularly given the companies’ combined presence in AI, robotics, communications, and space technology. Still, experts believe regulators would face significant hurdles, especially if the combined company continued to perform well.

“As long as he keeps running the business well and the stock price keeps going up, that is a pretty good bar to bringing a securities fraud suit,” said James Spindler, a professor of corporate law at the University of Texas School of Law.

Ultimately, the greatest obstacle may be financial rather than legal. As one corporate-governance expert noted, investors tend to support ambitious deals when markets are rising and shareholders are making money.

Charles Elson, the founding director of the Weinberg Center for Corporate Governance at the University of Delaware told The New York Times that Musk “has got this cheering section who will follow him to the gates of Hades or gates of heaven, wherever he leads them.” 

“Basically he’s gotten to the point where he can do almost anything he wishes...” 

Tyler Durden Thu, 06/18/2026 - 08:15

Congress Reaches Deal On Housing Bill With CBDC Ban Until 2030

Congress Reaches Deal On Housing Bill With CBDC Ban Until 2030

Authored by Jesse Coghlan via Cointelegraph, reviewed by Felix Ng.

The US House and Senate have reached a deal to move forward with a housing bill that includes a ban on the Federal Reserve creating a central bank digital currency (CBDC) until 2030.

A bipartisan group of House and Senate leaders released an updated version of the 21st Century Road to Housing Act on Tuesday, which aims to address housing affordability and bans institutional investors from buying existing single-family homes to rent out.

The bill has included a CBDC ban since the Senate passed it in March. The House also passed its version of the bill with strong support in May, but the House and Senate disagreed on some aspects. The Senate has now added further amendments that will be put before the House for a final vote.

The bill is likely to pass quickly and would hand a win to Republicans who have tried to pass a CBDC ban for years, as earlier standalone bills had stalled in Congress. Crypto advocates have long criticized CBDCs, which they see as an attempt by governments to repurpose crypto technology to a centrally-controlled asset.

The deal also means Congress can focus on passing other legislation before the August recess and the November midterm elections, in particular, the crypto-regulating CLARITY Act that many lawmakers have been pushing to advance.

House Republican leaders plan to put the bill up for a vote after the House returns from recess on June 23, two people familiar with the plan told Politico.

The housing bill includes language that says the Federal Reserve may not, directly or indirectly, “issue or create a central bank digital currency or any digital asset that is substantially similar to a central bank digital currency.”

It adds the clause will expire on Dec. 31, 2030, and creates a carveout for crypto stablecoins, or “dollar-denominated currency that is open, permissionless, and private.”

The clause revives much of the language from Republican Representative Tom Emmer’s Anti-CBDC Surveillance State Act, which was introduced in June 2025, passed by the House the next month, but was never picked up in the Senate.

US President Donald Trump signed an executive order in January 2025 banning federal agencies from all work related to CBDCs, saying they threatened “the stability of the financial system, individual privacy, and the sovereignty of the United States.”

Tyler Durden Thu, 06/18/2026 - 08:05

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