Zero Hedge

Next Auto Revolution: Tesla Integrates Grok AI Chatbot In Vehicles 

Next Auto Revolution: Tesla Integrates Grok AI Chatbot In Vehicles 

Elon Musk's xAI team recently unveiled its latest Grok model—one Musk called both "remarkable" and "a little terrifying"—as AI chatbot development accelerates into hyperdrive. Musk also announced that Grok will soon be integrated into Tesla vehicles, with the rollout expected as early as next week.

On Saturday, Tesla released a short video showcasing a vehicle running the new software update (2025.26), highlighting the evolution of the car into a 'smart' machine powered by a natural-language model that enables a hands-free experience for the driver.

Rather than focusing on features like conversational navigation, real-time diagnostics, or productivity tools such as voice-to-text messaging, the video primarily demonstrated the broader capabilities of the AI bot.

"Grok (Beta) (US, AMD) @Grok now available directly in your Tesla. Requires Premium Connectivity or a WiFi connection. Grok is currently in Beta & does not issue commands to your car – existing voice commands remain unchanged," Tesla wrote in a blog post on X last week. 

Tesla has updated their website...

Tesla's vertical integration of Grok AI and FSD hardware is setting a new benchmark for the automotive industry—one that will pressure legacy OEMs and EV competitors to accelerate their own AI programs. This is the next evolutionary leap for cars. 

However, as ZeroHedge readers fully understand, there are serious drawbacks here. These intelligent machines could one day be tied to social credit systems or dystopian surveillance programs run by intelligence agencies and Big Tech—monitoring your every move. That's why keeping an unintelligent backup vehicle, like a 1970s Mercedes 240D with zero microchips, might be an 'insurance against' a future where the government or tech giants can't lock you out of your own car for mean tweeting.

Do you have an unintelligent backup vehicle?

Tyler Durden Mon, 07/14/2025 - 12:05

The King Of Fedsailles

The King Of Fedsailles

By Bas van Geffen, Senior Macro Strategist at Rabobank

Team Trump has not lessened their attacks on Fed Chair Powell. Last week, the Director of the Office of Management and Budget berated Powell for what he considers to be “too lavish” of a renovation of the Federal Reserve building – or in Vought’s own words, “Versailles on the National Mall.” Speaking on CNBC, the OMB director spoke about “fundamental mismanagement” at the Fed.

National Economic Council Director Hassett, tipped to maybe replace Fed Chair Powell, said: “If there is cause to fire Powell, Trump has the authority to do so”, as another candidate Warsh and Vice President Vance joined in on the attack – which looks coordinated. 

Is the Trump administration creating another bit of pre-text for firing Powell? Because it’s not like Powell is the new Sun King, its just that rates aren’t sinking. Yet, despite all the criticism, Trump still insists he will not fire Powell. Does he just want to have a scapegoat?

Meanwhile, the word “walls” must have come up during the discussions of the US’ own Versailles, and Trump knows exactly who should pay for those. Over the weekend, the US president threatened to slap a 30% tariff on Mexican goods. However, if exceptions continue to apply for goods that comply with the USMCA trade agreement, the impact of this tariff hike will be fairly limited. 

The European Union will also be subject to a 30% tariff, unless the two sides can reach another agreement in the next two weeks. Arguably, that’s progress? I mean, it’s less than the 50% Trump had threatened to impose when trade negotiations did not progress as quickly as he likes. (But the rate is still higher than the 20% Trump unveiled on Liberation Day, and higher than the level Europe would be willing to accept.) 

That also seems to be the Brussel’s interpretation of events: it’s Trump’s negotiating style to put more pressure on the other side in the final stages before a deal is reached. And, as one official put it, Trump will never go through with this, because markets.

European equity markets will undoubtedly trade heavy on the back of these tariff announcements, and the EUR has dropped below 1.1660 at the time of writing. 

And so, European leaders have decided to once again postpone the rebalancing tariffs that have been pending ever since the US raised tariffs on steel and aluminium imports – hoping that they can still clinch a compromise that is acceptable to both sides. Trade Commissioner Sefcovic will speak with his American counterparts later today. 

Meanwhile, the EU also wants to cooperate with other nations that are hit by US tariffs – to do what exactly? The UK seems resigned to the fact that Trump’s baseline tariffs are here to stay.

The EU may seek to reduce its dependence on the US. Japan and the EU plan to create a joint military satellite network, and to start joint development of weapons systems. But none of that is ready overnight, as Germany’s minister of Defence is telling the weapons industry to deliver without further delays. (Or what?)

So, for the time being, Europe remains very much dependent on the Americans. President Trump is due to make an announcement on Russia today. According to Axios’ sources, the president will provide Ukraine with sophisticated military equipment – and not just the defensive kind, but also long-range missiles that could reach targets deep inside Russian territory. And these will be paid for by the EU.

None of this will be cheap, as an FT op-ed underscores the urgent need to Make America Affordable Again. And that doesn’t just go for the US. The Australian Treasury mistakenly let the national broadcaster know it sees taxes need to rise and that not enough houses will be built.

Meanwhile, Prime Minister Albanese, currently in China, refused to answer questions on Australia’s future position on a war between its security shield, the US, and its top export partner, China. But Australia is shocked the US might not commit to its defence; will we see higher tariffs on Australia, or will the US squeeze them in other ways?

Tyler Durden Mon, 07/14/2025 - 11:45

'Big' Announcement On Russia Is More TACO: Oil Tumbles As Trump 'Delays' Sanctions Threat Against Putin

'Big' Announcement On Russia Is More TACO: Oil Tumbles As Trump 'Delays' Sanctions Threat Against Putin

Update(1130ET): The big Monday announcement by President Trump... just the threat of more secondary tariffs on Russia? And venting a little more frustration at no peace progress.

  • TRUMP: SEVERE TARIFFS ON RUSSIA IF NO DEAL IN 50 DAYS
  • TRUMP THREATENS TO IMPOSE 'SECONDARY' TARIFFS ON RUSSIA
  • TRUMP REITERATES VERY UNHAPPY WITH RUSSIA
  • TRUMP: MADE DEAL TODAY TO SEND WEAPONS TO UKRAINE
  • TRUMP: IT'S ALL TALK THEN MISSILES GO INTO KYIV AND KILL
  • TRUMP: UKRAINE WILL TAKE THE MILITARY EQUIPMENT FROM NATO
  • TRUMP SUGGESTS MORE DYING IN UKRAINE WAR THAN PUBLICLY KNOWN
  • TRUMP: SECONDARY TARIFFS VERY POWERFUL

If this is "it"... the "major announcement" on Russia that was planned, then we will say it could have been a lot worse in terms of escalation (such as ramping up more offensive weapons deliveries to Kiev), but amid Trump perhaps poorly managing expectations, people will be asking: that was it? Even RT is chiming in with some light mockery...

Given markets were expecting something more 'huge' - oil prices pushed lower on the news of another lengthy timeline of "if no deal in 50 days"...

And yes, there will be some more weapons sent to Ukraine, Trump stated, but they will come via NATO allies, primarily.

Monthly US imports from Russia

Huge threats and a big arms package via European supplies:

President Donald Trump on Monday confirmed that the U.S. has agreed to sell arms to NATO just moments after he said Russian President Vladimir Putin has 50 days to secure a peace deal with Ukraine or face "100%" tariffs. 

NATO Secretary-General Mark Rutte said Trump called him on Thursday to confirm he wanted to enter into a deal with NATO allies to sell them arms for aid to Ukraine. 

Trump said billions of dollars worth of U.S. arms would be purchased from allies like Germany, Finland and Denmark that will be "quickly distributed" to Ukraine. 

* * * 

As if the Big Beautiful Bill's spending increases, the bombing of Iran, mixed signals on immigration and the suppression of the Epstein files weren't enough to infuriate Trump voters, now comes news that President Trump is going to announce what a top DC warmonger calls an "aggressive" transfer of offensive weapons to Ukraine. Under the novel arrangement, European countries are supposedly going to foot the bill.  

Last week, the administration announced that weapons shipments that had just been halted by Defense Secretary Pete Hegseth over concerns about the depletion of America's own arsenal were being given a hasty green light after all. Trump broke the news on Monday after last week's "disappointing" phone call with President Putin, telling reporters he would send “more weapons” to Ukraine. Critically, Trump had emphasized that these would be "defensive weapons primarily." 

Now, two sources tell Axios that it's likely a new weapons package will include long-range missiles capable of attacking deep inside Russia to include Moscow. They noted that a final decision hadn't been made. "Trump is really pissed at Putin. His announcement tomorrow is going to be very aggressive," warmongering South Carolina Sen. Lindsey told Axios.

While MAGA nation and libertarian-minded Trump voters will be disgusted, it's like a second Christmas in a month for Graham. First delighted by Trump's decision to engage the US military in Israel's war on Iran, long-time Ukraine-meddler Graham is now enthusing over Trump's new escalation. "The game...is about to change," said Graham in a Sunday appearance on Face the Nation. "I expect in the coming days you will see weapons flowing at a record level...[and] there will be tariffs and sanction available to President Trump he's never had before." 

The transaction is expected to be announced Monday when Trump meets with NATO Secretary General Mark Rutte. This time around, European countries are expected to pay for American weapons bound for Ukraine. "Basically, we are going to send them various pieces of very sophisticated military [equipment]. They're going to pay us 100% for them,"  Trump told reporters on Sunday. "As we send equipment, they're going to reimburse us."  

The new arrangement sprang from a suggestion made by Ukrainian President Volodymyr Zelensky at a NATO summit in late June. Striking an exceedingly Trump-like tone, an unnamed US official told Axios, "Zelensky came like a normal human being, not crazy, and was dressed like a somebody that should be at NATO. He had a group of people with him that also seemed not crazy. So they had a good conversation."

Trump was reportedly angered by his July 3 phone call with Putin, in which the Russian president made clear his intention to escalate the war. Sure enough, that very night Russia launched an apparently record-setting overnight drone attack on Ukraine - said to be among the largest since the war began. 

According to the new report, Western and Ukrainian officials are hoping an infusion of weapons will alter Putin's calculus about his war aims and terms for a ceasefire if not an end to it.  

Russia had been gradually but relentlessly taking over more territory (via Institute for the Study of War) 

During his 2024 campaign, Trump repeatedly vowed to bring a quick end to the war, variously claiming that he would get it "settled before I even become president" or, at worst, "within 24 hours" of doing so. Now, nearly 6 months into his term, Trump is about to pour more weapons into the 3 1/2-year old war. 

In doing so, Trump gives us yet another illustration of Tom Woods' Law #3: "No matter whom you vote for, you always wind up getting John McCain."  

Tyler Durden Mon, 07/14/2025 - 11:30

'Cascade Of Preventable Failures' Contributed To Trump Assassination Attempt: Senate Report

'Cascade Of Preventable Failures' Contributed To Trump Assassination Attempt: Senate Report

Authored by Jacob Burg via The Epoch Times,

The Senate released a report on July 13 detailing the critical missteps that allowed a gunman to climb a building and open fire on President Donald Trump during a rally in Butler, Pennsylvania, in 2024, and faulted the Secret Service for its discipline and “pattern of denials, mismanagement, and missed warning signs.”

The report, released by Sen. Rand Paul (R-Ky.), chairman of the Senate Homeland Security and Governmental Affairs Committee, investigated the events leading up to and after July 13, 2024, when a 20-year-old gunman climbed onto the roof of the American Glass Research building during a Trump campaign rally at the Butler Farm Show and opened fire on Trump, who was running for president at the time.

The man fired eight shots and struck four people, including Trump.

One of the rallygoers—Corey Comperatore, a former fire chief—died while shielding his family from the bullets. Two others were injured but survived.

“This was not a single error,” the report states. “It was a cascade of preventable failures that nearly cost President Trump his life.”

The report culminated from a yearlong bipartisan investigation that conducted 17 transcribed interviews with Secret Service personnel and reviewed more than 75,000 pages of documents from federal, state, and local law enforcement entities.

The Secret Service’s “disturbing pattern of communication failures and negligence” was faulted for the shooting, according to the report.

For example, the failed assassin was able to evade detection by Secret Service personnel for 45 minutes, despite civilians reporting his presence on the building rooftop to Secret Service 25 minutes before he fired any shots.

The Secret Service was also faulted for denying multiple requests for additional staff, assets, and resources to protect Trump during his campaign.

The agency did not fire anyone involved in the planning and execution of the Butler rally, the report states, highlighting that only six personnel were formally disciplined, and as recently as this month.

The report criticizes former Secret Service Director Kimberly Cheatle for falsely telling Congress that no asset requests had been denied for the Butler rally by the Secret Service. It also faults the agency for giving agents in advance roles “ill-defined responsibilities.”

Agents failed to communicate critical information about the shooter to Trump’s shift detail, who could have stopped the presidential candidate from stepping onto the stage, according to the report.

There was also a “severe lack of coordination and communication” between agents and state and local law enforcement throughout the event and during its planning, the report states.

“The United States Secret Service failed to act on credible intelligence, failed to coordinate with local law enforcement, and failed to prevent an attack that nearly took the life of a then-former president,” Paul said in a statement.

“Despite those failures, no one has been fired. And we only know what little discipline was handed out because I issued a subpoena. That’s unacceptable. This was not a single lapse in judgment. It was a complete breakdown of security at every level—fueled by bureaucratic indifference, a lack of clear protocols, and a shocking refusal to act on direct threats.”

Paul said the Senate must hold the Secret Service accountable and ensure that reforms are fully implemented so that the events of July 13, 2024, do not happen again.

The Secret Service is tasked with protecting both current and former presidents and their families, as well as visiting foreign leaders, some other senior officials, and leading candidates in presidential elections.

In a statement to The Epoch Times, current Secret Service Director Sean Curran said the agency has seen the report and will continue “working cooperatively with the committee as [the agency moves] forward with [its] mission.”

“Following the events of July 13, the Secret Service took a serious look at our operations and implemented substantive reforms to address the failures that occurred that day,” Curran said.

“The Secret Service appreciates the continued support of President Trump, Congress, and our federal and local partners who have been instrumental in providing crucial resources needed to support the agency’s efforts.”

The agency also referred to its one-year update on the July 13, 2024, Trump assassination attempt. Released last week, the update includes a list of recommendations from Congress, reforms the Secret Service has implemented in response, and a summary of the disciplinary actions taken.

Tyler Durden Mon, 07/14/2025 - 11:05

Russia Blasts Report It Backed Zero Enrichment Iran Nuclear Deal As 'Smear'

Russia Blasts Report It Backed Zero Enrichment Iran Nuclear Deal As 'Smear'

The Russian Foreign Ministry on Sunday blasted an Axios report claiming that President Vladimir Putin told Iranian officials he supports a nuclear agreement that would prohibit Iran from enriching uranium. The report claimed the Kremlin now backs America's 'zero enrichment' plan for Tehran as a basis for resuming talks.

The report also alleged that Putin conveyed the same stance in talks President Trump and French President Emmanuel Macron. The Iranians themselves were the first to say nothing like this was conveyed to them by Russia.

Russia’s Foreign Ministry called the claims "part of a new political smear campaign" aimed at increasing tensions over Iran's nuclear energy activities.

Via Reuters

"Invariably and repeatedly, we have emphasized the necessity of resolving the crisis concerning Iran's nuclear program exclusively through political and diplomatic means, and expressed our willingness to help find mutually acceptable solutions," the statement read.

Iran’s Tasnim news agency has also cited a top official who said that Tehran had received no communication from Moscow about any proposed deal barring uranium enrichment.

Trump has previously threatened that another strike on Iran remains possible if it resumed its enrichment program. 

The Wall Street Journal has also reported that Trump's support for additional Israeli action could be triggered if Iran is perceived to be progressing toward a nuclear weapon - and yet still there's no firm evidence that Tehran is pursuing one.

Both Washington and Tel Aviv have long simply expected the world to 'trust' them when it comes to assertions that Tehran is bent on achieving a bomb. 

And yet, the Western public would do well to remember the last time both capitals touted that an Mideast regime possessed WMD and thus posed an 'imminent threat'.

The recent 12-day war involved the US once again using WMD allegations as a pretext to attack a Middle East country, which it should be noted happens to border the other two countries also attacked by Washington: Iraq and Afghanistan.

Meanwhile, Iranian officials insist that negotiations must be accompanied by concrete guarantees that neither the US nor Israel will attack during the diplomatic process; but the reality is that the June surprise attacks happened just as a 'good-faith' negotiating process was unfolding, so Iran will have extreme difficulty trusting Washington ever again. 

Tyler Durden Mon, 07/14/2025 - 10:45

Musk Says Tesla Shareholders Will Vote On Investment In xAI At November Meeting

Musk Says Tesla Shareholders Will Vote On Investment In xAI At November Meeting

Elon Musk is urging Tesla shareholders to approve an investment in his AI startup, xAI, marking a move to bring his latest venture under the umbrella of his cash-rich EV company, according to Fortune.

“If it was up to me, Tesla would have invested in xAI long ago,” Musk posted Sunday. “We will have a shareholder vote on the matter.” That vote is expected at Tesla’s long-delayed annual meeting, now set for November.

Musk’s push comes as xAI ramps up spending to compete with OpenAI and Anthropic in the race for artificial general intelligence (AGI). Last week, Musk unveiled the fourth version of xAI’s chatbot, Grok, now being integrated into Tesla vehicles.

Tesla isn’t the first of Musk’s ventures to back xAI. Over the weekend, the Wall Street Journal reported that SpaceX, another Musk-led company, invested $2 billion into xAI, despite limited commercial synergy. Sources said Grok is only used for minor customer support functions at Starlink. Musk appeared to confirm the report.

Musk has floated a Tesla investment in xAI for months. In July, following Tesla’s previous annual meeting, he ran a social media poll asking if Tesla should invest $5 billion “assuming the valuation is set by several credible outside investors.” About two-thirds of nearly a million respondents agreed. Musk then pledged to bring the idea to Tesla’s board.

xAI’s path to AGI is proving costly. Bloomberg estimates the startup, founded in 2023, could burn through $13 billion this year. Musk dismissed the report as “nonsense” but didn’t elaborate. Two weeks later, xAI raised $10 billion—half of it through debt, a rare move for a high-growth tech startup. Morgan Stanley reportedly helped facilitate the raise, with SpaceX’s $2 billion investment included.

Grok also sparked controversy last week by posting antisemitic content on X, likening itself to “a mechanized version of Adolf Hitler.” Following the backlash, X CEO Linda Yaccarino resigned. xAI later apologized: “We deeply apologize for the horrific behavior that many experienced.”

Tesla’s last high-profile deal involving a Musk-led company was the 2016 SolarCity acquisition for $2.6 billion—criticized as a bailout but ultimately upheld by Delaware courts.

“We believe Tesla making a big investment in xAI is a key step forward,” Wedbush analyst Dan Ives wrote on Monday.

Tyler Durden Mon, 07/14/2025 - 10:10

Trump Says He Spoke To Bongino Amid Reports of Infighting Over Epstein Files

Trump Says He Spoke To Bongino Amid Reports of Infighting Over Epstein Files

Authored by Joseph Lord via The Epoch Times,

President Donald Trump said he spoke to FBI Deputy Director Dan Bongino on July 13, indicating that the two remain close despite reported friction over the release of the Jeffrey Epstein documents.

“I spoke to him today. Dan Bongino is a very good guy. I’ve known him a long time,” Trump told reporters outside Air Force 1. “He’s in good shape.”

The comments come after Axios reported on July 11 that Bongino—previously a conservative commentator who had long pressed for answers about Epstein’s 2019 death and operation—skipped work on Friday due to disagreements with Attorney General Pam Bondi’s handling of the matter.

 

Laura Loomer, a political commentator close to the president, also reported on Bongino’s absence from work last week, similarly referencing disagreements between Bongino and Bondi.

Trump on July 12 told his supporters not to continue looking into the circumstances surrounding the billionaire’s death.

“What’s going on with my ‘boys’ and, in some cases, ‘gals?’” Trump said in a July 12 post on social media platform Truth Social.

“They’re all going after Attorney General Pam Bondi, who is doing a FANTASTIC JOB! We’re on one Team, MAGA, and I don’t like what’s happening.

“We have a PERFECT Administration, THE TALK OF THE WORLD, and ‘selfish people’ are trying to hurt it, all over a guy who never dies, Jeffrey Epstein.”

He added, “One year ago our Country was DEAD, now it’s the ‘HOTTEST’ Country anywhere in the World. Let’s keep it that way, and not waste Time and Energy on Jeffrey Epstein, somebody that nobody cares about.”

Epstein’s case has been intensely scrutinized online for years following his 2019 death in federal custody while awaiting prosecution on charges of engaging in a multiyear conspiracy to sex traffic minors.

The billionaire was reported to have hung himself in his cell, but given his connections with many high-ranking officials and celebrities, many have speculated whether Epstein was murdered. The nature of Epstein’s operation, involving sexual exploitation of over one thousand victims, many of whom were minors, has also been scrutinized.

At a July 8 Cabinet meeting, a reporter asked Bondi to address a claim that Epstein had been some form of intelligence community asset.

“I have no knowledge about that,” she said. “We can get back to you on that.”

During that Cabinet meeting, Bondi also said a missing minute from a jail surveillance tape on the night Epstein died was a normal circumstance due to a routine technical artifact in the camera system, as the video is reset every night at 12 a.m.

Trump suggested that nothing in the Epstein files “could have hurt the MAGA Movement.”

On July 7, the Department of Justice and FBI released a memo stating that Jeffrey Epstein committed suicide and had no “client list,” and that the agencies would not release any further material related to the Epstein case.

“As part of our commitment to transparency, the Department of Justice and the Federal Bureau of Investigation have conducted an exhaustive review of investigative holdings relating to Jeffrey Epstein,” the agencies stated in the memo.

The review found that Epstein committed suicide in his cell as he was awaiting trial in August 2019. This concurs with an autopsy conducted at the time.

“The conclusion that Epstein died by suicide is further supported by video footage from the common area of the Special Housing Unit (SHU) where Epstein was housed at the time of his death,” the memo reads.

The review found that Epstein did not keep a list of clients as part of his sex trafficking activities. Additionally, there is no evidence that Epstein blackmailed individuals, according to the memo.

Nonetheless, according to the review, Epstein “harmed over one thousand victims” as “each suffered unique trauma.”

Tyler Durden Mon, 07/14/2025 - 09:25

Lawsuit Incoming: AOC Directly Calls Trump A "Rapist"

Lawsuit Incoming: AOC Directly Calls Trump A "Rapist"

Authored by Steve Watson via Modernity.news,

Marxist Democrat Alexandra Ocasio Cortez could face a libel lawsuit and be liable for millions of dollars after directly branding President Trump a “rapist” in a X post.

Continuing the trend of Democrats suddenly caring about the Jeffrey Epstein case after four years in power doing nothing, AOC wrote the following…

“Wow who would have thought that electing a rapist would have complicated the release of the Epstein Files?”

Wow indeed.

The last time someone branded Trump a “rapist,” he sued them and settled for $15 million plus a million more in legal costs.

In that case, anchor George Stephanopulous, who claimed Trump was convicted of rape during a broadcast, had backing from ABC News.

She’s used to slandering anyone she likes in Congress.

None of them really care about transparency in the Epstein case and never have.

Its just more rampant TDS.

AOC could find herself visiting court fairly regularly in the near future.

Tom Homan, serving as Border Czar in the Trump administration, recently confirmed that AOC is under federal investigation for allegedly employing an undocumented immigrant on her congressional staff, raising questions about potential violations of immigration laws amid their ongoing public disputes over enforcement policies.

*  *  *

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Tyler Durden Mon, 07/14/2025 - 08:50

US Futures Drop, Europe Slides, Bitcoin Soars On Tariff Risks As CPI, Earnings Loom

US Futures Drop, Europe Slides, Bitcoin Soars On Tariff Risks As CPI, Earnings Loom

US equity futures are lower, although well off session lows, and European stocks slumped after Trump’s weekend threat to slap 30% tariffs on EU and Mexico, providing a test for markets that were recently at record highs. With global yields blowing out, as German and Japanese long-dated bonds slumped as traditional safe havens were ignored, amid the risk-off tone the only flight to safety today are cryptocurrencies and precious metals, with Bitcoin surging to a new record high of $122,000 while silver rose above $39 for the first time since 2011. As of 8:00am ET, S&P and Nasdaq futures are down 0.3% after Trump said the tariff rates will kick in on Aug. 1 if the EU and Mexico can’t negotiate better terms, and investors will need to make the call on whether he’s going to follow through this time, with Mag 7 names mostly lower premarket with NVDA/TSLA in the green. Semis are also under pressure and cyclicals and defensives are mixed, pointing to a choppy session. The Treasury yield curve is seeing a slight bear steepening while the USD is flat. Commodities are stronger across all 3 complexes with crude, nat gas and silver the standouts. A flurry of economic data is in focus this week, with CPI due on Tuesday and PPI on Wednesday plus the unofficial start to earnings season with all the big banks reporting. 

In premarket trading, Mag 7 stocks are mixed (Tesla +2.7%, Nvidia +0.5%, Meta -0.2%, Alphabet -0.5%, Amazon -0.5%, Microsoft -0.5%, Apple -1%). 

  • Cryptocurrency-exposed stocks including Coinbase (COIN), Strategy (MSTR) and Galaxy Digital (GLXY) rise as Bitcoin extends its record-breaking rally.
  • Intapp (INTA) falls 3.1% as Barclays cuts to underweight from equal-weight after trimming 2026 revenue estimates for the application software company.
  • Boeing Co. and General Electric Co. edged higher after investigators said that they found no evidence so far that would require them to take action following last month’s Air India jetliner crash.
  • Autodesk (ADSK) rises 6% after the software company said it is allocating its capital to organic investment, targeted and tuck-in acquisitions, and continuing its share repurchase program as its free cash flow grows.
  • Intapp (INTA) falls 3% as Barclays cuts to underweight, trimming 2026 revenue estimates for the software services company.
  • Kenvue Inc. (KVUE) rises 4% after the maker of Neutrogena and Listerine brands appointed director Kirk Perry as interim CEO effective immediately. The company also said it’s advancing an ongoing comprehensive review of strategic alternatives.
  • Stitch Fix (SFIX) gains 7% after William Blair upgraded the personal styling company to outperform, positive on changes made at the company under CEO Matt Baer.
  • Ultragenyx Pharmaceutical (RARE) falls 4% after the FDA rejected the company’s application for its gene therapy for a brain disorder, citing chemistry, manufacturing and controls issues. Analysts note the approval delay as disappointing.
  • Waters Corp. (WAT) slips 5% after Waters and Becton’s Biosciences & Diagnostic Solutions business are set to combine in a Reverse Morris Trust transaction valued at about $17.5 billion.

In corporate news, Synopsys secured China’s approval to buy out Ansys for $35 billion, while Elon Musk said Tesla plans to poll shareholders on whether to invest in xAI. Nvidia CEO Jensen Huang said the US government doesn’t need to be concerned that the Chinese military will use his company’s products to improve their capabilities. Fastenal is set to report earnings before the market opens. Improved pricing, market share gains and stabilizing short-cycle industrial markets should support accelerated top-line and earnings growth, according to Bloomberg Intelligence. Jane Street has deposited 48.4 billion rupees ($564 million) in an escrow account to comply with an order from India’s securities regulator, part of an ongoing probe into allegations of market manipulation by the US trading giant. Partners Group is selling a large asset in its buyout portfolio to a consortium led by its own infrastructure division.

The week's data will be key to rate-cut expectations and “could set the tone for the direction of the Fed and risk sentiment for the second half of the year,” according to CreditSights. Meanwhile, Trump seized upon a new way to criticize Jerome Powell’s leadership of the Fed: his handling of an expensive renovation of the central bank’s headquarters.

Elsewhere, RBC lifted its S&P 500 year-end target to 6,250 from 5,730, though remains neutral on stocks for the second half, expecting choppy conditions. As reported previously, Goldman strategists expect the S&P 500 to rise by 10% to 6,900 over the next 12 months, implying a P/E multiple on forward consensus earnings of 22 times.

Strategists are also getting worried about earnings. Wall Street is bracing for the weakest season since mid-2023, and are a key source of uncertainty for Goldman clients. Still, earnings revisions are showing a big dispersion between sectors, which creates an opportunity for stock picking, Morgan Stanley’s Michael Wilson said. Key themes include the impact of tariffs and a weaker dollar, and AI-related spending.

Trump’s weekend threat to impose 30% tariffs on the European Union and Mexico is testing market resilience, following a series of escalated trade measures against multiple partners. While traders largely view them as a bargaining tactic and expect final tariffs to be softer, the moves have injected uncertainty just as the S&P 500 was trading near record highs. Elsewhere, Bloomberg reported that the EU is preparing to step up its engagement with other countries hit by Trump’s tariffs following a slew of new threats to the bloc and other US trading partners. Thailand is weighing allowing zero-duty market access for more US goods to help persuade the Trump administration to lower a threatened 36% tariff on its exports. 

“The market will generally think this is mostly a negotiation tactic,” noted Deutsche Bank AG strategist Jim Reid. “However, at some stage someone’s bluff could be called. If huge tariffs do get imposed on Aug. 1, in thin holiday markets, we could get a sizable market reaction.”

US inflation figures due on Tuesday is expected to show faster price growth as companies began passing on higher import costs. Alongside retail sales, industrial production and consumer sentiment figures later in the week, the data could test the Federal Reserve’s wait-and-see stance on interest rate cuts. Swaps are still pricing in nearly two quarter-point reductions this year, with a likelihood of around 60% for a first cut in September.

“It is important to note that investors are already pricing in rate cut expectations,” noted Linh Tran, market analyst at XS.com. “If the data points to stronger-than-expected inflationary pressures or a tight labor market, the Fed may be forced to delay rate cuts — potentially triggering a valuation shock for equity markets.”

Meanwhile, Trump again repeated his criticism of Fed Chair Jerome Powell late on Sunday, saying it would be a “good thing” if the central banker stepped down. Deutsche Bank strategist George Saravelos said the potential dismissal of Powell is a major and underpriced risk that could trigger a selloff in the US dollar and Treasuries.

In Europe, major markets are mostly lower with UK leading and Germany lagging after President Donald Trump dials up trade tensions by announcing a 30% tariff on goods from the European Union. Healthcare shares are among the biggest sector gainers, while technology and auto are the biggest laggards. In individual stocks, Hermes falls after Jefferies downgrades to hold after seeing a lack of major growth for the luxury goods maker. The UK's FTSE 100 rose 0.3%, outperforming its European peers that have struggled after Trump threatened the EU with a 30% tariff rate. The Stoxx 50 falls 0.6%. UK equities also benefited from increased bets on interest rate cuts by the Bank of England after Governor Bailey hinted at bigger reductions if the jobs market deteriorates more quickly than the central bank expects. Bailey’s remarks also boosted gilts, most notably at the short-end. UK two-year yields fall 5 bps to 3.81%. Cable dips 0.1% The EU is said to contact other US allies that are tariff targets per BBG, flagging the potential for a coordinated response to the US. Momentum is leading, Cyclicals/Vol are lagging; Growth over Value. UKX +0.4%, SX5E -0.6%, SXXP -0.3%, DAX -0.7%. CSI +0.1%, HSI +0.3%, NKY -0.3%, ASX -0.1%, KOSPI +0.8%.

Earlier in the session, Asian stocks were mixed with China/HK leading and HSTECH was higher but remains in a 2.5 month-long range.

In FX, the Bloomberg Dollar Spot Index adds 0.1% while the yen is the strongest of the G-10 currencies, rising 0.1% against the greenback. The Swedish krona is the weakest with a 0.5% fall.

In rates, treasuries edged lower, with US 10-year yields rising 1 bp to 4.42%. The big overnight bond movers were in Japan and Germany...  

  • GERMAN 30-YEAR YIELD RISES 3BPS TO 3.254%, HIGHEST SINCE 2023
  • *JAPAN 30-YEAR BOND YIELD RISES 10.5 BASIS POINTS TO 3.145%

... The yield on Japan’s long-term bonds moved sharply higher amid signs of thin liquidity and increasing worries about higher government spending that may spread to other countries. Regarding supply in the US, Treasury coupon auctions are on hiatus until 20-year bond reopening on July 23; investment-grade corporate new issue calendar is blank thus far but expected to feature big-bank offerings later in the week after 2Q results start being reported Tuesday

In commodities, oil prices advance, with WTI rising 1% and above $69 a barrel. Spot gold climbs $10 to around $3,365/oz. Bitcoin rises to another record above $122,000 as traders await "crypto week."

Today's US economic calendar is blank and no Fed speakers for Monday; ahead this week are June CPI, PPI and retail sales.

Market Snapshot

  • S&P 500 mini -0.3%
  • Nasdaq 100 mini -0.3%
  • Russell 2000 mini -0.3%
  • Stoxx Europe 600 -0.3%
  • DAX -0.7%
  • CAC 40 -0.4%
  • 10-year Treasury yield +1 basis point at 4.42%
  • VIX +1 points at 17.36
  • Bloomberg Dollar Index little changed at 1200.07
  • euro little changed at $1.1685
  • WTI crude +0.8% at $69.01/barrel

Top Overnight News

  • US President Trump sent trade letters to the EU and Mexico announcing 30% tariffs from August 1st which would be separate from sectoral tariffs.
  • The US will send more Patriot air-defense batteries to Ukraine, Trump said, reversing his halt to new weapons deliveries since the start of his second term. He’s scheduled to meet NATO chief Mark Rutte later today. BBG
  • White House insiders insist the tariffs will take effect on 8/1 without any further delays. Politico
  • UK businesses are scaling back hiring for jobs set to be affected by AI, McKinsey analysis found. More broadly, UK hiring plunged at the fastest pace in almost two years last month, KPMG data showed. BBG
  • The EU plans to step up engagement with other countries hit by the US levies, people familiar said, but paused countermeasures to allow more time for talks. BBG
  • China’s biotech advance has been as ferocious as the nation’s breakthrough efforts in AI and EVs, eclipsing the EU and catching up to the US. The number of novel drugs in China – for cancer, weight loss and more – entering into development ballooned to over 1,250 last year, far surpassing the EU and nearly catching up to the US count of about 1,440. BBG
  • Amazon’s Prime Day sale helped boost online spending across all US retailers by a larger-than-estimated 30.3% to $24.1 billion. BBG
  • China’s exports grew at a faster clip in June, topping market expectations as trade tensions with the U.S. eased following a round of bilateral talks. June trade numbers came in ahead of expectations, including exports (+5.8% vs. the Street +5%) and imports (+1.1% vs. the Street +0.3%). WSJ
  • The yield on Japan’s long-term bonds moved sharply higher amid signs of thin liquidity and increasing worries about higher government spending that may spread to other countries. BBG
  • India’s wholesale prices for June undershot the consensus and fell into deflationary territory (they came in at -0.13% M/M vs. the Street +0.52%). BBG

Tariffs/Trade

  • President Trump sent a trade letter to the EU announcing 30% tariffs from August 1st which would be separate from sectoral tariffs.
  • Trump commented that the EU is talking to the US and wants to open up their countries.
  • White House Economic Adviser Hassett said President Trump has seen some outlines of proposed trade deals and thinks they need to do better, while he added that these tariffs are real if Trump gets proposals that he doesn’t think are good enough.
  • Trump said it would be a good thing if Fed Chair Powell quits and said that Powell should resign immediately, while he repeated criticism that Powell is too late.
  • White House Economic Adviser Hassett said the Fed has a lot to answer for on renovation cost overruns and if there is cause to fire Fed Chair Powell, President Trump has the authority to do so.
  • UK's King Charles will host US President Trump for a state visit from September 17th to 19th.
  • European Commission President von der Leyen said imposing 30% tariffs on EU exports would disrupt the essential transatlantic supply chains, while they remain ready to continue working towards an agreement by August 1st and will take all necessary steps to safeguard EU interests including the adoption of proportionate countermeasures if required. Furthermore, she said they will extend the suspension of their countermeasures to US tariffs until early August and noted they have always been clear that they prefer a negotiated solution with the US which remains the case.
  • The EU is planning to "step up engagement" with other nations impacted by US President Trump's tariffs, according to Bloomberg sources. Nations include Canada and Japan and could lead to potential coordination.
  • French President Macron said France fully supports the European Commission in the negotiations and shares the same very strong disapproval of the announcement of horizontal tariffs of 30% on EU exports.
  • German Chancellor Merz said US tariffs of 30% would hit the German export industry to the core and they want to use the time until August 1st, while he stated that tariff letters were also US negotiating positions.
  • German Economy Minister Habeck said the EU must pragmatically negotiate a tariff solution with the US that focuses on the main points of conflict and stated that new US tariffs would hit European exporters hard. Habeck also commented that new US tariffs would have a strong impact on the economy and consumers in Europe and the US.
  • German Finance Minister Klingbeil said Trump’s tariff policies threaten the US economy at least as much as European companies, as well as stated that the tariff conflict must end and nobody needs new threats or provocations. Furthermore, he said the EU needs to continue serious and targeted negotiations with the US but must take decisive countermeasures if a fair negotiated solution is not successful.
  • German trade industry association said the newly announced tariffs are part of US President Trump’s negotiating strategy and Europe must not be impressed by Trump’s announcements but must seek a solution in talks on an equal footing.
  • Italian Foreign Minister Tajani says if a deal is not attained with the US, then the EU has a list of tariffs prepared against US goods worth EUR 21bln. In the face of US tariffs, the ECB should consider a new QE programme and rate reductions.
  • EU Trade commissioner Sefcovic says will speak with US counterparts later today; must prepare well-balanced countermeasures against the US. US tariff plan is prohibitive for mutual trade, approaching a good outcome for both sides.
  • US President Trump sent a trade letter to Mexico announcing 30% tariffs from August 1st which would be separate from sectoral tariffs.
  • Mexican President Sheinbaum believes they will reach an agreement with the US before tariffs go into effect on August 1st, while she stated that Mexico’s sovereignty is not negotiable It was also reported that Mexico’s Economy Ministry said Mexico is negotiating and the working group with the US will aim for an alternative before August 1st to protect companies and employees.
  • Chinese Foreign Minister Wang said China and ASEAN agreed to submit a free trade zone pact in October for approval and signing, while they agreed on a five-year action plan with all-round cooperation in over 40 fields and will complete a consultation on the ‘code of conduct in the South China Sea’ within 2026.
  • US President Trump said South Korea is seeking a trade deal.

A more detailed look at global markets courtesy of Newsquawk

APAC stocks were mostly positive but with some cautiousness seen following US President Trump's latest tariff letters in which he announced to impose 30% tariffs on the EU and Mexico from August 1st, while the region also reflected on somewhat mixed Chinese trade data. ASX 200 was rangebound as gains in mining, resources and materials offset the weakness in the consumer, industrial, financial and tech sectors, while data showed imports missed estimates for Australia's largest trading partner. Nikkei 225 initially retreated amid tariff uncertainty although the losses were gradually pared as sentiment overnight somewhat improved and Machinery Orders topped forecasts. Hang Seng and Shanghai Comp kept afloat amid the latest trade data in which exports topped forecasts and imports missed but returned to growth, while there were some encouraging comments from the meeting between US Secretary of State Rubio and Chinese Foreign Minister Wang last Friday which was described as constructive and with the odds said to be high for a future meeting between US President Trump and Chinese President Xi.

Top Asian News

  • PBoC's Deputy Governor Zou Lan says they will continue to implement appropriately loose monetary policy Will support efforts taken to attain the FY growth target. To better use various structural tools to provide support to key sectors. To improve the market-based rate regime. Increased bond holdings by small banks within regulatory permits are permitted and reasonable. Such investment should be kept at a small level.
  • BoJ is likely to increase its inflation forecast for fiscal 2025 but maintain consumer inflation forecasts for fiscal 2026 and 2027, according to sources cited by Reuters.
  • Japan and the EU are seeking to develop a joint satellite network, according to Nikkei.

European bourses (STOXX 600 -0.4%) have begun the week on the backfoot, after the US issued tariff letters to Mexico and the EU, threatening a 30% tariff rate, effective from August 1st. European sectors opened entirely in the red, though fare better now, with Healthcare and Basic Resources. The former boosted by upside in AstraZeneca (+1.4%) which benefits after its blood pressure related treatment met primary and secondary endpoints. Trade sensitive sectors such as Autos and Consumer Products sit at the foot of the pile. US equity futures (ES -0.3%, NQ -0.3%, RTY -0.4%) are moving in tandem with those in Europe. RTY is once again the underperformer, given the downbeat 

Top European News

  • Japan and the EU are seeking to develop a joint satellite network, according to Nikkei.
  • UK Chancellor Reeves is to hail fiscal ‘stability’ and City risk-taking in her Mansion House speech on Tuesday and will insist she has a grip on the UK economy and will not let borrowing run out of control, according to FT. CityAM also reports that she is to leave cash Isas untouched.
  • BoE Governor Bailey says the MPC is prepared to make larger rate reductions if the jobs market shows signs of a pronounced slowdown, according to The Times.
  • Netherlands rationed electricity to ease power grid stresses as thousands of businesses and households waited to connect to the Dutch grid, while officials and companies said lengthy waits for connections were holding up economic growth and could force businesses to rethink their investment plans, according to FT.
  • Fitch affirmed Germany at AAA; Outlook Stable.
  • UBS expects the ECB to cut rates by 25bps in September (prev. saw 25bps cut in July).

FX

  • DXY has kicked the week off on a steady footing following a solid showing last week. The macro narrative remains one dominated by the trade agenda after US President Trump sent trade letters to the EU and Mexico announcing 30% tariffs from August 1st. Despite some modest risk aversion this morning, the market remains of the view that eventual tariff rates will be notably below the currently proposed levels. DXY briefly made its way onto a 98 handle for the first time since 25th June with a current session high at 98.09.
  • Despite a wobble in early European trade, the EUR has been resilient in the face of news that the US is to impose 30% tariffs on the EU from August 1st. Subsequently, EU Trade Commissioner Sefcovic says he will speak with US counterparts later today. However, he said the EU needs to prepare well-balanced countermeasures against the US.
  • JPY is a touch firmer vs. the USD with the yen able to benefit from a very modest safe-haven bid and stronger-than-expected machinery order data. That being said, it is not lost on markets that a trade deal between the US and Japan does not appear to be close with Japanese negotiators looking to defend Japanese interests ahead of the Upper House elections due on July 20th. USD/JPY briefly made its way onto a 146 handle. However, the session low at 146.86 is some way off Friday's trough at 146.13.
  • GBP is slightly softer vs. the USD and flat vs the EUR. Sentiment for the GBP remains negative with weekend commentary from BoE Governor Bailey adding to the bearishness after stating that the MPC is prepared to make larger rate reductions if the jobs market shows signs of a pronounced slowdown. Cable has slipped below the 1.35 mark (coincides with the 50DMA), delving as low as 1.3452; lowest since 23rd June.
  • Antipodeans are both are softer alongside the soft risk appetite amid ongoing trade uncertainty and as participants digested Chinese trade data. After last week's RBA and RBNZ rate decisions, the sole scheduled highlight for the antipodes comes via Thursday's labour market metrics.
  • PBoC set USD/CNY mid-point at 7.1491 vs exp. 7.1744 (Prev. 7.1475)

Fixed Income

  • USTs are contained. The bias from JGBs was a softer one after better-than-expected Machinery Orders data. USTs themselves in a thin 110-23+ to 110-28 band, entirely within but towards the trough of Friday's 110-22+ to 111-08 range. Newsflow has been focussed almost entirely on trade, after Trump delivered his EU letter, with European officials since indicating a desire to work towards a better outcome but outlining that countermeasures are being prepared. The relatively muted nature of moves thus far indicates that markets do not see the 30% tariff level as the likely end point and instead regard it as a negotiating tactic.
  • Bunds opened higher by just under 10 ticks at 129.26 before meandering in a thin range and extending to a 129.41 peak at 07:00BST, no specific newsflow at the time and the move seemingly a function of the usual early-morning increase in activity. The jump of around 20 ticks over three minutes has since pared entirely with Bunds now back to Friday’s 129.17 close and essentially flat in a 129.11 to 129.41 band.
  • Gilts opened a touch higher and then extended to a 91.85 peak, posting gains of around 15 ticks at best. Since, in-fitting with EGBs, the benchmark has pared from that high and is now essentially unchanged on the session in a 91.56-85 band. As has been the case recently, the UK is someone protected from direct trade updates owing to its deal with the US. However, newsflow is just as pronounced as the fiscal situation dominates domestically. Ahead, UK Chancellor Reeves is to speak.

Commodities

  • WTI and Brent and currently trading higher by around USD 0.70/bbl and are just off session highs. Overnight, the complex traded with little direction given the lack of energy-specific newsflow and as geopolitical updates remained light. Brent Sept’25 currently trades towards the upper end of a USD 70.35-71.29/bbl range. The pick-up in the complex today stemmed from commentary via an Iranian Foreign Ministry spokesperson who highlighted that Tehran will respond to the return of UN sanctions after the snapback mechanism. Focus now turns to a “major statement” on Russia from US President Trump.
  • Precious metals are firmer with some outperformance in spot silver, which continues to build on recent upside; XAG currently trading around USD 38.96/oz, briefly topping a 14-year high at USD 39/oz. Spot gold is a little firmer today, initially gapping higher at the open amid the risk deterioration sparked by the US letters to the EU. The yellow-metal currently trades in a USD 3,354.11-3,374.65/oz range.
  • Base metals hold a negative bias, as traders digest the latest Chinese trade data which were mixed; exports beat expectations whilst imports continue to be dragged down by weaker commodities demand. 3M LME Copper is modestly lower and trades towards the lower end of a USD 9,623.8-9,703.6/t range.
  • Iraq set August Basrah Medium Crude official selling price to Asia at plus USD 1.35/bbl vs Oman/Dubai, while it set OSP to Europe at minus USD 0.55 vs Dated Brent and set the OSP to North and South America at minus USD 1.15 vs ASCI.
  • Australia's PM Albanese said they need to work together with China to address global excess steel capacity.

Geopolitics: Middle East

  • Iran Foreign Ministry spokesperson says Tehran will respond to the return of UN sanctions after snapback mechanism. No date or location for US/Iran nuclear talks. Will not restart US talks unless we are certain they will work.
  • Israeli official said talks in Doha are ongoing with Hamas for a ceasefire and hostage deal but noted Hamas is sticking to positions that do not allow mediators to advance an agreement.
  • US envoy to the Middle East Witkoff said he is hopeful on Gaza ceasefire negotiations and was said to meet senior Qataris in New Jersey on Sunday.
  • Iranian Foreign Minister Araghchi said they are carefully assessing options for talks with the US.

Geopolitics: Ukraine

  • US President Trump is considering greenlighting new funding for Ukraine to send a message to Russia, according to CBS. It was separately reported that President Trump is to announce an "aggressive" Ukraine weapons plan on Monday to arm Ukraine which is expected to include offensive weapons, according to Axios.
  • EU envoys are nearing an agreement on lower Russian oil price cap, according to Reuters.
  • Ukraine’s SBU intelligence agency accused Russia’s FSB of being behind the murder of an SBU Colonel in Kyiv last week and said agents responsible for the murder were killed during an operation to apprehend them.
  • IAEA team at Ukraine’s Zaporizhzhia nuclear plant reported hearing hundreds of rounds of small arms fire on Saturday night.
  • Russia’s Defence Ministry said Russian forces took control of Myrne and Mykolaivka in eastern Ukraine.
  • North Korean leader Kim reaffirmed unconditional support for Moscow’s actions in the Ukraine war during a meeting with Russian Foreign Minister Lavrov, while North Korea and Russia pledged cooperation to safeguard each other’s territorial integrity. Furthermore, Russia expressed firm opposition to any attempt to undermine North Korea’s national security and sovereignty, while it was also stated that Moscow wants to further strengthen the strategic partnership.
  • Ukrainian President Zelensky's Chief of staff says US Special Envoy Kellogg has arrived in Kyiv to discuss security and sanctions against Russia.
  • Russian President Putin's envoy Dmitriyev says Russia-US dialogue will continue.
  • Russia's Kremlin says it is obvious Ukraine is not in a hurry on peace negotiations, "we await timing of third round of talks".

Geopolitics: Other

  • North Korea warned it stands ready to take military action against threats from the US, Japan and South Korea following recent joint air drills involving a strategic US bomber, according to KCNA.

US Event Calendar

  • Nothing scheduled

DB's Jim Reid concludes the overnight wrap

Today ranks high on my list of least favourite days of the year. It’s our annual family trip to a theme park—strategically timed after our kids finish school but before some others break up, meaning shorter queues and more rollercoaster rides. I couldn’t be more thrilled.

Technically, I’m off today, but if you email me—even with something trivial—I’ll treat it as an emergency if I happen to be stuck in a queue and need an excuse to escape.

To use the biggest cliche in the book, it continues to be a rollercoaster ride for all of us following the trade story, even if the market has increasingly overcome its queasiness and ensured it has been well stocked up on motion sickness tablets.

As trade letters from the US continue to get mailed out, April 2nd has become July 9th which has become August 1st for an ever increasing list of countries. In the early hours of Saturday Mr Trump’s stationary cupboard was opened again and a letter was sent to the EU and Mexico informing them that they would face 30% tariffs on August 1st. To be fair, a month ago Trump threaten the EU with a 50% tariff so you might argue this is an improvement! The market will generally think this is mostly a negotiating tactic and that we’re unlikely to see such rates. The EU have been measured in their response so far and have extended the suspension of trade countermeasures that were supposed to kick-in tomorrow night. This will now be aligned to the August 1st deadline. So the EU and the market are hoping and expecting diplomacy to win out. 

However at some stage, someone’s bluff could be called. Trump is under less pressure to back down with US risk markets around their highs and bond markets relatively stable at the moment. If huge tariffs do get imposed on August 1st, in thin holiday markets, we could get a sizeable market reaction. So the next three weeks of negotiating will be key to restful holidays everywhere. 

If you’re looking for the ultimate way our holidays could be ruined then DB’s George Saravelos put out a thought provoking piece on Friday looking at what might happen if Trump finds a legal reason to dismiss Fed Chair Powell for cause. This is based on the story around whether he misrepresented facts to Congress around renovations at the Fed HQ. See it here. Basically it is likely that this would lead to a sizeable initial sell-off that could be calmed by the other governors forcibly reiterating Fed independence. However much might depend on the inflation trajectory. If all is calm on this front then we could move on but if we start to see slippage here, then a removal of a Fed Chair could be a big problem, at least initially, for a country with huge twin deficits. 

Given the above, this week is important as we see the latest US CPI numbers (tomorrow) with PPI (Wednesday) following. Before we preview these, the other key global releases are the other CPI numbers in Canada (also tomorrow), the UK (Wednesday) and Japan (Friday). In the US, there will also be retail sales (Thursday) and industrial production (Wednesday) reports for June, along with the preliminary University of Michigan survey (Friday) for July. Claims on Thursday corresponds to payroll survey week so it’ll be interesting to see whether the recent improvements continue given the payroll implications. Growth will also be in focus in China, where Q2 GDP and June activity data are out tomorrow. Also important will be the US banks kicking off the Q2 earnings season tomorrow, with semiconductor firms ASML and TSMC also reporting this week.

Lets now delve into the main upcoming US data, especially the inflation numbers. In our US economists’ preview (see “Webinar: June CPI preview & webinar registration“), they expect a +0.9% increase in seasonally adjusted gas prices and solid food inflation to boost the headline CPI (+0.34% forecast vs. +0.08% previous) slightly above that of core (+0.32% vs. +0.13%) which would increase the year-over-year growth rate by three- and two-tenths respectively (to 2.7% and 3.0%), and the three- and six-month annualised rates by 1.1 percentage points (to 2.8%) and three-tenths (to 2.9%), respectively. Our economists will be looking mostly at signs of tariff related inflation in the core good categories. Wednesday’s PPI data will also be important for the categories that feed through into core PCE, the Fed’s preferred inflation gauge. 

Fed speak will be active after the CPI numbers with a host of appearances so there could be plenty of reaction to the data. See those listed in the day-by-day calendar at the end alongside all the other key events from around the world this week. This includes a G20 finance ministers and central bank governors meeting on Thursday and Friday. 

On the start of Q2 earnings, JPMorgan, Wells Fargo and Citi kick off the Q2 earnings season tomorrow. Bank of America, Morgan Stanley and Goldman Sachs will follow on Wednesday. Blackrock, American Express and Charles Schwab will also be among financials reporting. Investors will also focus on messages from results of semiconductor firms ASML (Wednesday) and TSMC (Thursday), with the Philadelphia Semiconductor index now up 15.2% YTD. Other S&P 500 companies reporting this week will include Johnson & Johnson, Netflix, General Electric and PepsiCo. In Europe, notable names include Novartis, Volvo, Sandvik and Saab.

In Asia Europe's stock futures are down around -0.6% after the weekend letter with S&P and NASDAQ futures down around -0.4% so far this morning. The Euro has barely moved. 10yr UST yields are +1bp but 10 and 30yr JGBs are around +5.5bps and +6.5bps higher as fiscal fears dominate ahead of this coming Sunday's Upper House election. 

Asian equity markets are actually mostly higher on balance with the KOSPI (+0.64%) continuing its strong gains from the past week, on sustained strength in technology and chipmaking stocks. Chinese stocks are also edging higher with the CSI (+0.20%), the Shanghai Composite (+0.40%) and the Hang Seng (+0.10%) all trading up on strong trade data (more below). On the other hand, the Nikkei is flat on trade worries and higher yields. 

Coming back to China, exports regained some momentum in June while imports rebounded, as exporters rushed out shipments to capitalise on a fragile tariff truce between Beijing and Washington ahead of a looming August deadline. Exports rose +5.8% y/y in June (v/s +4.8% in May), beating the market forecast for +5.0% growth. Imports rebounded +1.1% y/y, following a -3.4% decline in May. Markets were expecting a +0.3% rise.

Recapping last week now and tariffs were the dominant story, as President Trump announced the rates that countries would face from August 1. Markets were initially calm, and several indices including the S&P 500 and the German DAX hit a record high. But after more aggressive measures were announced, including a 35% rate for Canada and the potential for a higher baseline tariff, there was a risk-off move into the weekend that left the S&P 500 -0.31% lower for the week (-0.33% Friday). Moreover, several assets impacted heavily by the tariffs witnessed a major underperformance. For instance, Trump announced a 50% rate for Brazil, which was well above the 10% from Liberation Day, and the country’s Ibovespa equity index suffered its worst week since December 2022, with a -3.59% loss (-0.41% Friday). In the opposite direction, the prospect of a 50% copper tariff meant US copper futures surged +9.12% (+0.25% Friday) in their biggest weekly jump since March 2022. 

All this meant that US equities struggled towards the weekend. But it wasn’t all bad news, as the Magnificent 7 advanced +0.58% (+0.38% Friday) to its highest since January, with Nvidia’s market capitalisation surpassing $4tn. And in Europe, the Stoxx 600 finished the week up +1.15% (-1.01% on Friday), alongside a +1.97% gain for the DAX (-0.82% Friday). However, there was some weakness in Japan, where the Nikkei fell -0.61% (-0.19% Friday), along with emerging markets, with the MSCI EM index down -0.20% (-0.17% Friday).

Otherwise, government bonds struggled last week as concern mounted about the fiscal situation. Moreover, better-than-expected US data also contributed to the selloff, as investors dialled back the likelihood of rapid rate cuts this year. Indeed, the US weekly initial jobless claims fell for a 4th consecutive week to 227k. So that helped to ease fears about the labour market, particularly given the 4-week moving average for claims had reached a 21-month high in mid-June. In light of all that, Treasury yields posted a fresh increase, with the 10yr yield up +6.4bps (+6.0bps Friday) to 4.41%, whilst the 30yr yield was up +8.8bps (+8.0bps Friday) to 4.95%. That also came amidst mounting political pressure on the Fed, as President Trump said that “Our Fed Rate is AT LEAST 3 Points too high.”

Finally in Europe, last week saw an even larger increase in yields that pushed several up to multi-year highs. For instance, 10yr bunds were up +11.7bps to 2.72%, their highest level since late-March. In addition, the 30yr German yield ended the week at 3.22%, marking its highest closing level since the Euro crisis turmoil in 2011. That was echoed in France as well, as their 30yr yield hit a post-2011 high of 4.20%, having risen +14.7bps last week.

 

Tyler Durden Mon, 07/14/2025 - 08:11

'The View' Host Declares Violence Against ICE Agents Is Part Of A Justified "Reckoning"

'The View' Host Declares Violence Against ICE Agents Is Part Of A Justified "Reckoning"

Authored by Steve Watson via Modernity.news,

Sunny Hostin of ABC’s infernal women’s gossip show turned TDS rage-fest, ‘The View’ intimated Friday that it is excusable for deranged leftists to violently attack ICE agents. 

In another frothing rant, Hostin appeared to be proclaiming that because ICE agents are wearing masks during raids to arrest illegal aliens, it’s somehow justifiable to attack them.

“If you mask yourself because you don’t want to be seen, there will be a reckoning for some of the actions law enforcement have done,” Hostin declared.

Hold on, masks are bad again now?

It’s difficult to keep up with their deranged mindgarble.

As we highlighted yesterday, during a raid on a marijuana farm manned by illegal aliens, and illegal alien children (yes really) a ‘protester’ near Camarillo pulled a gun on ICE agents.

This came following an attempted ambush on ICE in Texas by leftist terrorists intending to murder the agents.

Anyway, back to Hostin…

Imagine the screech parade if federal agents start to take more direct action against terrorists and criminals threatening their lives.

*  *  *

Your support is crucial in helping us defeat mass censorship. Please consider donating via Locals or check out our unique merch. Follow us on X @ModernityNews.

Tyler Durden Mon, 07/14/2025 - 07:20

"Don't Have To Worry": Nvidia CEO Says China's Army Won't Rely On U.S. AI Chips

"Don't Have To Worry": Nvidia CEO Says China's Army Won't Rely On U.S. AI Chips

In an interview with CNN's Fareed Zakaria, Nvidia CEO Jensen Huang argued that, just as the internet was designed and built by American technology, so too should artificial intelligence be shaped by it globally. He emphasized the need to reopen markets where Nvidia's advanced chips are currently banned, such as China.

Zakaria asked Huang: "But what if, in doing that, you are also providing the Chinese military and Chinese intelligence with the capacity to supercharge, turbocharge their weapons with the very best American chips?" 

CNN's Fareed Zakaria speaks with Jensen Huang. Source: CNN

Huang replied, "We don't have to worry about that, because the Chinese military, no different than the US military, won't seek each other's technology out to build critical systems."

"It could be limited at any time; not to mention, there's plenty of computing capacity in China already," he said, adding, "They don't need Nvidia's chips, certainly, or American tech stacks in order to build their military." 

Huang's remarks follow years of bipartisan U.S. policy imposing trade restrictions on Nvidia's advanced AI chips to China. He argued that these export controls have been counterproductive, accelerating China's own AI chip ambitions. Huang contended that U.S. tech leadership means ensuring global AI systems are built on the American tech stack, rather than Chinese technology... 

"We want the American tech stack to be the global standard ... in order for us to do that, we have to be in search of all the AI developers in the world," Huang said, noting that about half of the world's AI developers are based in China. 

Huang's CNN interview comes just days after he met with President Trump at the White House late last week, and plans a scheduled trip to Beijing to meet with senior Chinese officials and attend the International Supply Chain Expo. 

Huang has been vocal in recent months about the combined impact of the Biden-Harris regime and the Trump-Vance administration's export restrictions on advanced AI chips to China. In May, he told investors, "The $50 billion China market is effectively closed to U.S. industry."

However, the Trump team cancelled a planned rule by former President Joe Biden called the "AI diffusion rule," promising fewer restrictions later this year on which countries could receive Nvidia's advanced AI chips.

"The world is right now hungry, anxious to engage AI," Huang previously said, adding, "Let us get the American AI out in front of everybody right now."

Last week, Nvidia became the first company to close a trading day with a market cap over $4 trillion... This was a symbolic milestone for capital markets and the current bull cycle.

Huang is walking a very fine line between Washington and Beijing as he seeks to preserve Nvidia's global market access. The real question is whether China hawks in the White House will ever allow Beijing unrestricted access to Nvidia's AI chips—something that seems increasingly unlikely.

Tyler Durden Mon, 07/14/2025 - 06:55

DoE Authorizes Exxon To Tap SPR To Avert Refinery Disruptions

DoE Authorizes Exxon To Tap SPR To Avert Refinery Disruptions

As Trump officials signal plans to refill the Strategic Petroleum Reserve (SPR)—drained under the Biden-Harris regime—a new report reveals that ExxonMobil has begun drawing from the SPR due to contaminated crude supplies from offshore rigs in the Gulf of America to avoid refinery outages.

Bloomberg reports Exxon is borrowing up to 1 million barrels of crude from the SPR due to quality issues with Mars crude — a Gulf of America oil grade contaminated with high levels of zinc, which can damage refinery equipment. 

According to sources, Exxon has been forced to reduce production at its Baton Rouge refinery and attempt to resell Mars crude cargoes in the spot market.

Here's more from Bloomberg:

The quality issue has forced the refinery cuts at Exxon's facility in Baton Rouge, one of the people said. And the company is now trying to resell cargoes of Mars crude in the spot market, the people said.

The oil, which is typically used by Exxon's roughly 520,000 barrel-a-day Baton Rouge refinery, is for delivery this month at the St. James terminal, a major storage hub in the Pelican state, the people said.

On Friday, the Department of Energy (DoE) confirmed a SPR loan of up to 1 million barrels was made to Exxon due to its "logistical challenges impacting crude oil deliveries to the company's Baton Rouge refinery." 

DoE provided more details about the situation:

Under the exchange agreement, DOE will provide up to 1 million barrels of crude oil from the SPR. The exchange will support ExxonMobil's restoration of refinery operations that were reduced due to an offshore supply disruption. ExxonMobil will return the borrowed crude along with additional barrels of crude oil for the SPR at no cost to the taxpayer.

The Department remains in close coordination with industry partners to ensure stability in the fuel supply chain during the peak demand season. DOE continues to encourage refiners to prioritize efficient production and delivery of refined fuels, stands ready to support the nation's energy security through the responsible use of strategic resources, and will continue to deliver on President Trump's commitment to protect American energy security by refilling the SPR.

The DOE's SPR loan to Exxon is aimed at preventing outages at the Baton Rouge refinery, one of the largest in the U.S. and a key part of the nation's fuel infrastructure. Any throttling of supplies or even a shutdown would trigger immediate disruptions in gasoline, diesel, and jet fuel supply, with the Southeast and Mid-Atlantic regions hit hardest. 

Tyler Durden Mon, 07/14/2025 - 05:45

Dissonance In The Green Valhalla: German Workers Break The Climate Silence

Dissonance In The Green Valhalla: German Workers Break The Climate Silence

Submitted by Thomas Kolbe

For the first time in years, a group of German industrial labor representatives has broken ranks. In an open letter to Chancellor Friedrich Merz, they fiercely criticize Berlin’s climate policy. Will their defiance ignite a firestorm—or vanish in the memory hole crafted by media gatekeepers?

I must admit: after years of bitter disappointment in the fight for rational energy discourse, I view initiatives like this with cautious pessimism. In Germany, climate policy has become the domain of a paternalistic triad—politics, media, and public compliance. The first casualty? Open debate. The air is thick with passive-aggressive apocalypse. Criticizing the Green Deal is a near-taboo. No historical precedent comes to mind where a nation, fully conscious, impales itself economically in slow motion.

Calm Before the Storm?

In the U.S., the climate machinery may be in retreat under Trump’s return. But in the EU, the climate cartel and its beneficiaries remain in full control - despite recession, deindustrialization, and public despair. Is this just the quiet before the reckoning?

Germany has paid the highest price in this climate crusade. Its forced transition to renewables, while banning nuclear energy, might still be hailed as “civilizational progress” in eco-parasitic enclaves like Berlin-Prenzlauer Berg or Cologne-Ehrenfeld. But out in the real world, where productive citizens, families, and businesses depend on affordable energy and mobility, the mood has soured. The party’s over. Pockets are empty. And the pressure’s building.

Now, at last, some are speaking up. A group of industrial works councils is calling on Chancellor Merz to halt the climate policy suicide run. Since COVID lockdowns, over 300,000 jobs in Germany’s industrial core have vanished. Energy-intensive production has become a fantasy—especially when competitors like the U.S. pay up to 75% less for electricity.

End of the Silence Cartel

The letter’s signatories include labor reps from LEAG, ArcelorMittal Eisenhüttenstadt, BASF Schwarzheide, the works council of Lausitz Energy, and the regional leadership of the IGBCE union. These are not outliers—they’re survivors of Germany’s failed “green transformation.”

ArcelorMittal recently scrapped its green steel plans—despite billions in offered subsidies. BASF is cutting 700 jobs in Ludwigshafen. The “green restructuring” of Germany’s economy now reads like an industrial obituary. Every day, another subsidized project collapses into the dustbin of central planning.

Their rebellion is the real headline: it takes courage to stand outside the climate orthodoxy and step into the light. Respect.

No More Consensus

These aren't populists or corporate shills. These are works councils, long considered integrated into Germany’s consensus-driven labor model. By issuing a public letter, they’re committing open defiance. They’re aiming straight at the Green Deal—the administrative metastasis that has paralyzed Europe’s economic lifeblood.

The tone is striking: they describe “the worst economic crisis since WWII.” Over 100,000 industrial jobs lost—just this year. In truth, the total job losses since 2020 are triple that, according to Ernst & Young.

They call the energy transition a “failed operation on an open heart.” After 35 years of subsidizing wind and solar, grid stability hasn’t improved—yet grid costs are in the hundreds of billions. The high energy prices aren’t just socially unjust; they’re an existential threat to prosperity and civil peace.

The councils are calling for an industrial electricity price of €0.05/kWh, and for industry to be freed from surcharges and levies.

Brussels’ Controlled Economy

In response, the EU Commission approved a controversial subsidy scheme in June: selected companies may receive up to 50% off wholesale power prices—but only for half their annual usage, and only if they invest in “green technologies.”

Once again, instead of market discipline or fair competition, Brussels fixes prices and distributes taxpayer money based on ideological compliance. They can’t—and won’t—let go of command-and-control economics.

A Healthy Immune Response

That these labor leaders speak plainly and dismantle the green agenda line by line is encouraging. A part of German society still has an immune system when its existence is at stake. They demand an end to national and EU-level climate overreach unless and until binding global commitments exist. They also demand fair trade protections and realistic technology policy—including hydrogen and carbon capture.

This is the key: on an integrated global market, unilateral sacrifices only lead to destruction. Germany’s leadership has knowingly ignored this truth for decades. The workers’ letter, while addressed to Berlin, clearly targets Brussels.

The EU’s plan was simple: force the world into its climate straitjacket to offset its strategic energy deficit. The EU imports 60% of its energy. That dependency makes Brussels vulnerable. And nothing frightens it more than negotiating with energy-exporting partners as equals.

Bottom-Up Rebellion

This protest has grassroots power—it comes from people living the reality of failed climate economics, not from think tanks or talking heads. It will initially circulate through unions and works councils, but the shared pain may soon create a common wave of resistance. Should this happen, the media-industrial complex will struggle to ignore, bury, or mock it—though they’ll try.

We may be witnessing a turning point—where internal pressure forces Brussels and the von der Leyen Commission to alter course.

That the challenge comes not from corporate lobbies, state-funded artists, or Green-aligned parties, but from the very workers being sacrificed, gives it a potency unseen in the climate debate.

If this letter reaches public consciousness—despite media blackout—then the winds sown by Brussels and the climate lobby may erupt into a storm even Europe’s green elites can’t contain.

Let’s stay optimistic.

* * * 

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

Tyler Durden Mon, 07/14/2025 - 05:00

Dissonance In The Green Valhalla: German Workers Break The Climate Silence

Dissonance In The Green Valhalla: German Workers Break The Climate Silence

Submitted by Thomas Kolbe

For the first time in years, a group of German industrial labor representatives has broken ranks. In an open letter to Chancellor Friedrich Merz, they fiercely criticize Berlin’s climate policy. Will their defiance ignite a firestorm—or vanish in the memory hole crafted by media gatekeepers?

I must admit: after years of bitter disappointment in the fight for rational energy discourse, I view initiatives like this with cautious pessimism. In Germany, climate policy has become the domain of a paternalistic triad—politics, media, and public compliance. The first casualty? Open debate. The air is thick with passive-aggressive apocalypse. Criticizing the Green Deal is a near-taboo. No historical precedent comes to mind where a nation, fully conscious, impales itself economically in slow motion.

Calm Before the Storm?

In the U.S., the climate machinery may be in retreat under Trump’s return. But in the EU, the climate cartel and its beneficiaries remain in full control - despite recession, deindustrialization, and public despair. Is this just the quiet before the reckoning?

Germany has paid the highest price in this climate crusade. Its forced transition to renewables, while banning nuclear energy, might still be hailed as “civilizational progress” in eco-parasitic enclaves like Berlin-Prenzlauer Berg or Cologne-Ehrenfeld. But out in the real world, where productive citizens, families, and businesses depend on affordable energy and mobility, the mood has soured. The party’s over. Pockets are empty. And the pressure’s building.

Now, at last, some are speaking up. A group of industrial works councils is calling on Chancellor Merz to halt the climate policy suicide run. Since COVID lockdowns, over 300,000 jobs in Germany’s industrial core have vanished. Energy-intensive production has become a fantasy—especially when competitors like the U.S. pay up to 75% less for electricity.

End of the Silence Cartel

The letter’s signatories include labor reps from LEAG, ArcelorMittal Eisenhüttenstadt, BASF Schwarzheide, the works council of Lausitz Energy, and the regional leadership of the IGBCE union. These are not outliers—they’re survivors of Germany’s failed “green transformation.”

ArcelorMittal recently scrapped its green steel plans—despite billions in offered subsidies. BASF is cutting 700 jobs in Ludwigshafen. The “green restructuring” of Germany’s economy now reads like an industrial obituary. Every day, another subsidized project collapses into the dustbin of central planning.

Their rebellion is the real headline: it takes courage to stand outside the climate orthodoxy and step into the light. Respect.

No More Consensus

These aren't populists or corporate shills. These are works councils, long considered integrated into Germany’s consensus-driven labor model. By issuing a public letter, they’re committing open defiance. They’re aiming straight at the Green Deal—the administrative metastasis that has paralyzed Europe’s economic lifeblood.

The tone is striking: they describe “the worst economic crisis since WWII.” Over 100,000 industrial jobs lost—just this year. In truth, the total job losses since 2020 are triple that, according to Ernst & Young.

They call the energy transition a “failed operation on an open heart.” After 35 years of subsidizing wind and solar, grid stability hasn’t improved—yet grid costs are in the hundreds of billions. The high energy prices aren’t just socially unjust; they’re an existential threat to prosperity and civil peace.

The councils are calling for an industrial electricity price of €0.05/kWh, and for industry to be freed from surcharges and levies.

Brussels’ Controlled Economy

In response, the EU Commission approved a controversial subsidy scheme in June: selected companies may receive up to 50% off wholesale power prices—but only for half their annual usage, and only if they invest in “green technologies.”

Once again, instead of market discipline or fair competition, Brussels fixes prices and distributes taxpayer money based on ideological compliance. They can’t—and won’t—let go of command-and-control economics.

A Healthy Immune Response

That these labor leaders speak plainly and dismantle the green agenda line by line is encouraging. A part of German society still has an immune system when its existence is at stake. They demand an end to national and EU-level climate overreach unless and until binding global commitments exist. They also demand fair trade protections and realistic technology policy—including hydrogen and carbon capture.

This is the key: on an integrated global market, unilateral sacrifices only lead to destruction. Germany’s leadership has knowingly ignored this truth for decades. The workers’ letter, while addressed to Berlin, clearly targets Brussels.

The EU’s plan was simple: force the world into its climate straitjacket to offset its strategic energy deficit. The EU imports 60% of its energy. That dependency makes Brussels vulnerable. And nothing frightens it more than negotiating with energy-exporting partners as equals.

Bottom-Up Rebellion

This protest has grassroots power—it comes from people living the reality of failed climate economics, not from think tanks or talking heads. It will initially circulate through unions and works councils, but the shared pain may soon create a common wave of resistance. Should this happen, the media-industrial complex will struggle to ignore, bury, or mock it—though they’ll try.

We may be witnessing a turning point—where internal pressure forces Brussels and the von der Leyen Commission to alter course.

That the challenge comes not from corporate lobbies, state-funded artists, or Green-aligned parties, but from the very workers being sacrificed, gives it a potency unseen in the climate debate.

If this letter reaches public consciousness—despite media blackout—then the winds sown by Brussels and the climate lobby may erupt into a storm even Europe’s green elites can’t contain.

Let’s stay optimistic.

* * * 

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

Tyler Durden Mon, 07/14/2025 - 05:00

Rapper's Scheme To Create A Real Life Wakanda In Africa Ends In Failure

Rapper's Scheme To Create A Real Life Wakanda In Africa Ends In Failure

There have been numerous 'back to Africa' movements over the years, usually promoted by leftist activists.  Often these movements are driven by fantasies within the black American community of exporting the best of US life, economy, technology and infrastructure into Africa and far away from the "oppression" of white people. 

Of course, it's white people that created the majority of the marvels that define western civilization; the rest of the world simply seeks to imitate this model, often with limited success. 

Back to Africa travelers most often come to this shocking realization after encountering a multitude of struggles when trying to assimilate into African societies.  The limitations and lack of easily available resourced in Africa are stark.  There is no monolithic culture with unified ideals in African nations, they are deeply tribal and view black Americans as distinctly separate and alien despite sharing similar skin color.

Instead of accepting this reality and moving on, activists have proposed new projects that seek to build a kind of isolated bubble of wealth within an African enclave - They are so desperate for Wakanda to be real that they are hoping to conjure it into being.

Rap artist Akon, real name Aliaune Damala Bouga Time Puru Nacka Lu Lu Lu Badara Akon Thiam, launched such an endeavor seven years ago with the intent to "free black Americans" from the racism of the west and bring the Marvel movie Utopia to life. 

The $6 billion construction effort, called Akon City, was started with the support of the government of Senegal in 2018 and was also supposed to adopt a new cryptocurrency called "Akoin" (the imagination of modern artists is truly staggering).  Sitting on Senegal's Atlantic Coast, Akon's high-tech, eco-friendly city was supposed to run entirely on renewable energy.

Of course, rappers are known for their opportunism, not their grand vision or leadership.  Both Akon City and the Akoin project have met with failure, with Akon city being scrapped by Senegal and the cryptocurrency facing investment setbacks and accusations of mismanagement.

Akon and the Senegalese Coastal Development and Promotion Company (SAPCO) have reached an “amicable agreement” to end the venture, the general manager of SAPCO, Serigne Mamadou Mboup, told a Senegalese news agency.  According to a Bloomberg report, SAPCO terminated the Akon City project after Akon failed to comply with a final demand to begin construction.

The ultimatum, which was reportedly issued by SAPCO in 2024, came after a prolonged period of inactivity and project delays that had led to public criticism and doubts about its feasibility.  After five years of setbacks, the 800-hectare site in Mbodiène - about 100km (60 miles) south of the capital, Dakar - remains mostly empty. The only structure is an incomplete reception building. There are no roads, no housing, no power grid. 

"We were promised jobs and development," one local resident told the BBC. "Instead, nothing has changed."  

"The Akon City project no longer exists," Serigne Mamadou Mboup, the head of Senegal's tourism development body, Sapco, told the BBC.

The Wakanda delusion contains elements of communist futurism very similar to the sci-fi propaganda of the early Soviet Union.  Promise people a life of technological ease and the prestige of scientific superiority; appeal to their childlike wonder and they will embrace you with open arms.  The idea also caters to the race obsessions of leftists who are clamoring to prove that, sans white people, the world would be some kind of comic book paradise.    

The problem is that reality always sets a tangible foot down somewhere and ruins the dream.

There are vast swaths of the African continent that still don't have fresh running water, basic sanitation, medical care or electricity, and there's no white people around to blame.  Building a civilization is much harder than burning one to the ground.  It takes generations of trial and error, not to mention strong leadership and impressive ingenuity.  Basing the hopes of a new society on the impulses of a rapper with delusions of persecution should have been a red flag for everyone involved.     

Tyler Durden Mon, 07/14/2025 - 04:15

Rapper's Scheme To Create A Real Life Wakanda In Africa Ends In Failure

Rapper's Scheme To Create A Real Life Wakanda In Africa Ends In Failure

There have been numerous 'back to Africa' movements over the years, usually promoted by leftist activists.  Often these movements are driven by fantasies within the black American community of exporting the best of US life, economy, technology and infrastructure into Africa and far away from the "oppression" of white people. 

Of course, it's white people that created the majority of the marvels that define western civilization; the rest of the world simply seeks to imitate this model, often with limited success. 

Back to Africa travelers most often come to this shocking realization after encountering a multitude of struggles when trying to assimilate into African societies.  The limitations and lack of easily available resourced in Africa are stark.  There is no monolithic culture with unified ideals in African nations, they are deeply tribal and view black Americans as distinctly separate and alien despite sharing similar skin color.

Instead of accepting this reality and moving on, activists have proposed new projects that seek to build a kind of isolated bubble of wealth within an African enclave - They are so desperate for Wakanda to be real that they are hoping to conjure it into being.

Rap artist Akon, real name Aliaune Damala Bouga Time Puru Nacka Lu Lu Lu Badara Akon Thiam, launched such an endeavor seven years ago with the intent to "free black Americans" from the racism of the west and bring the Marvel movie Utopia to life. 

The $6 billion construction effort, called Akon City, was started with the support of the government of Senegal in 2018 and was also supposed to adopt a new cryptocurrency called "Akoin" (the imagination of modern artists is truly staggering).  Sitting on Senegal's Atlantic Coast, Akon's high-tech, eco-friendly city was supposed to run entirely on renewable energy.

Of course, rappers are known for their opportunism, not their grand vision or leadership.  Both Akon City and the Akoin project have met with failure, with Akon city being scrapped by Senegal and the cryptocurrency facing investment setbacks and accusations of mismanagement.

Akon and the Senegalese Coastal Development and Promotion Company (SAPCO) have reached an “amicable agreement” to end the venture, the general manager of SAPCO, Serigne Mamadou Mboup, told a Senegalese news agency.  According to a Bloomberg report, SAPCO terminated the Akon City project after Akon failed to comply with a final demand to begin construction.

The ultimatum, which was reportedly issued by SAPCO in 2024, came after a prolonged period of inactivity and project delays that had led to public criticism and doubts about its feasibility.  After five years of setbacks, the 800-hectare site in Mbodiène - about 100km (60 miles) south of the capital, Dakar - remains mostly empty. The only structure is an incomplete reception building. There are no roads, no housing, no power grid. 

"We were promised jobs and development," one local resident told the BBC. "Instead, nothing has changed."  

"The Akon City project no longer exists," Serigne Mamadou Mboup, the head of Senegal's tourism development body, Sapco, told the BBC.

The Wakanda delusion contains elements of communist futurism very similar to the sci-fi propaganda of the early Soviet Union.  Promise people a life of technological ease and the prestige of scientific superiority; appeal to their childlike wonder and they will embrace you with open arms.  The idea also caters to the race obsessions of leftists who are clamoring to prove that, sans white people, the world would be some kind of comic book paradise.    

The problem is that reality always sets a tangible foot down somewhere and ruins the dream.

There are vast swaths of the African continent that still don't have fresh running water, basic sanitation, medical care or electricity, and there's no white people around to blame.  Building a civilization is much harder than burning one to the ground.  It takes generations of trial and error, not to mention strong leadership and impressive ingenuity.  Basing the hopes of a new society on the impulses of a rapper with delusions of persecution should have been a red flag for everyone involved.     

Tyler Durden Mon, 07/14/2025 - 04:15

EU Won't Retaliate To Trump's 30% Tariff, Countermeasures On Hold Until August

EU Won't Retaliate To Trump's 30% Tariff, Countermeasures On Hold Until August

Authored by Jacob Burg via The Epoch Times,

European Commission President Ursula von der Leyen said on July 13 that the European Union will extend a suspension on its countermeasures to U.S. tariffs until next month while trade negotiations continue with the Trump administration.

On July 12, U.S. President Donald Trump said he will impose a 30 percent tariff on all imports from the EU absent a trade deal with his administration.

The tariffs would be separate from any sector-specific levies. He accused the EU of imposing various tariffs and non-tariff trade barriers on the United States and said he would increase the tariff level if Europe retaliates.

Trump had initially given U.S. trading partners until July 9 to negotiate trade deals with his administration or face the tariffs he announced in early April. Trump recently said he would begin sending letters to countries informing them of their tariff levels if they do not negotiate deals with his team.

He has sent letters to more than 20 U.S. trading partners, including Mexico, which received a letter on July 12 informing the nation that it would also have 30 percent tariffs imposed on its imports into the United States.

After Trump announced the EU’s new tariff level, von der Leyen said on July 12 that the EU, the United States’ largest trading partner, would take all necessary steps to safeguard its interests, including “the adoption of proportionate countermeasures if required.”

German Economy Minister Katherina Reiche called for a “pragmatic outcome to the negotiations” between the EU and the United States.

EU ambassadors met on July 13, one day ahead of the trade ministers’ meeting in Brussels, to decide whether to retaliate against Trump’s new tariffs or extend a suspension on countermeasures that was set to expire on July 14.

The EU opted to take the second route.

While speaking with reporters, von der Leyen said the suspension would extend until early August while the EU continues to “prepare further countermeasures” so it is “fully prepared.”

When Trump delayed the imposition of his reciprocal tariffs on U.S. trading partners until July 9, the EU also suspended an initial package of countermeasures to U.S. sectoral tariffs on steel and aluminum that would affect $24.6 billion in U.S. imports into Europe.

The EU was also preparing a second package of countermeasures since May that would target roughly $84.2 billion of U.S. goods, but the final list requires approval by all EU member states and has not yet been made public.

The bloc’s Anti-Coercion Instrument, which allows it to retaliate against nations outside of the EU that put economic pressure on member states to alter their policies, was not yet on the table, von der Leyen said.

“The [anti-coercion] instrument is created for extraordinary situations, we are not there yet,” she said.

Among the possible retaliatory steps the EU could take are restricting its market access to goods and services and other economic measures that include export controls, financial markets, and foreign direct investment.

On July 13, German Finance Minister Lars Klingbeil said the EU must take action against the United States if trade negotiations fail.

“If a fair negotiated solution does not succeed, then we must take decisive countermeasures to protect jobs and companies in Europe,” Klingbeil, who is also vice chancellor in his nation’s ruling coalition, told German media. “Our hand remains outstretched, but we will not go along with everything.”

Because the United States is its largest export market, Germany could face significant challenges from higher U.S. tariffs, particularly as it exports automobiles, automobile components, machinery, and pharmaceuticals into the United States.

Tyler Durden Mon, 07/14/2025 - 03:30

EU Won't Retaliate To Trump's 30% Tariff, Countermeasures On Hold Until August

EU Won't Retaliate To Trump's 30% Tariff, Countermeasures On Hold Until August

Authored by Jacob Burg via The Epoch Times,

European Commission President Ursula von der Leyen said on July 13 that the European Union will extend a suspension on its countermeasures to U.S. tariffs until next month while trade negotiations continue with the Trump administration.

On July 12, U.S. President Donald Trump said he will impose a 30 percent tariff on all imports from the EU absent a trade deal with his administration.

The tariffs would be separate from any sector-specific levies. He accused the EU of imposing various tariffs and non-tariff trade barriers on the United States and said he would increase the tariff level if Europe retaliates.

Trump had initially given U.S. trading partners until July 9 to negotiate trade deals with his administration or face the tariffs he announced in early April. Trump recently said he would begin sending letters to countries informing them of their tariff levels if they do not negotiate deals with his team.

He has sent letters to more than 20 U.S. trading partners, including Mexico, which received a letter on July 12 informing the nation that it would also have 30 percent tariffs imposed on its imports into the United States.

After Trump announced the EU’s new tariff level, von der Leyen said on July 12 that the EU, the United States’ largest trading partner, would take all necessary steps to safeguard its interests, including “the adoption of proportionate countermeasures if required.”

German Economy Minister Katherina Reiche called for a “pragmatic outcome to the negotiations” between the EU and the United States.

EU ambassadors met on July 13, one day ahead of the trade ministers’ meeting in Brussels, to decide whether to retaliate against Trump’s new tariffs or extend a suspension on countermeasures that was set to expire on July 14.

The EU opted to take the second route.

While speaking with reporters, von der Leyen said the suspension would extend until early August while the EU continues to “prepare further countermeasures” so it is “fully prepared.”

When Trump delayed the imposition of his reciprocal tariffs on U.S. trading partners until July 9, the EU also suspended an initial package of countermeasures to U.S. sectoral tariffs on steel and aluminum that would affect $24.6 billion in U.S. imports into Europe.

The EU was also preparing a second package of countermeasures since May that would target roughly $84.2 billion of U.S. goods, but the final list requires approval by all EU member states and has not yet been made public.

The bloc’s Anti-Coercion Instrument, which allows it to retaliate against nations outside of the EU that put economic pressure on member states to alter their policies, was not yet on the table, von der Leyen said.

“The [anti-coercion] instrument is created for extraordinary situations, we are not there yet,” she said.

Among the possible retaliatory steps the EU could take are restricting its market access to goods and services and other economic measures that include export controls, financial markets, and foreign direct investment.

On July 13, German Finance Minister Lars Klingbeil said the EU must take action against the United States if trade negotiations fail.

“If a fair negotiated solution does not succeed, then we must take decisive countermeasures to protect jobs and companies in Europe,” Klingbeil, who is also vice chancellor in his nation’s ruling coalition, told German media. “Our hand remains outstretched, but we will not go along with everything.”

Because the United States is its largest export market, Germany could face significant challenges from higher U.S. tariffs, particularly as it exports automobiles, automobile components, machinery, and pharmaceuticals into the United States.

Tyler Durden Mon, 07/14/2025 - 03:30

These Are The World's Biggest Tourism Economies

These Are The World's Biggest Tourism Economies

Tourism is a major economic driver for many nations, powering jobs, infrastructure, and global connections.

This chart, via Visual Capitalist's Marcus Lu, highlights the top 10 countries by the size of their tourism economies, encompassing everything from hotel stays and flights, to attractions and services.

Data & Discussion

The data for this visualization comes from the World Travel & Tourism Council (WTTC). It shows the total economic contribution of each country’s tourism sector in 2024, measured in U.S. dollars.

America Leads the Pack

The United States has retained its title as the world’s most dominant tourism economy, generating $2.36 trillion of economic contribution in 2024.

The U.S. benefits from strong domestic travel, mature infrastructure, and iconic global destinations such as New York (the eighth most-visited city in the world), Las Vegas, and its vast national parks.

China’s Rapid Climb

China’s tourism sector contributed $1.3 trillion, underscoring its role as a major hub for both international and domestic travel.

While currently second, the WTTC projects China will take the top spot within the next decade. Rising middle-class income and a focus on tourism development continue to propel its growth.

This includes several policies, including easing visa restrictions and introducing new tax-refund shopping policies.

Europe’s Tourism Staples

Europe remains a major player, with Germany, the UK, France, Italy, and Spain all ranking in the top 10.

All of these countries benefit from rich cultural heritage, as well as strong rail and air links.

If you enjoyed today’s post, check out The Top Countries Sending Tourists to the U.S. on Voronoi, the new app from Visual Capitalist.

Tyler Durden Mon, 07/14/2025 - 02:45

These Are The World's Biggest Tourism Economies

These Are The World's Biggest Tourism Economies

Tourism is a major economic driver for many nations, powering jobs, infrastructure, and global connections.

This chart, via Visual Capitalist's Marcus Lu, highlights the top 10 countries by the size of their tourism economies, encompassing everything from hotel stays and flights, to attractions and services.

Data & Discussion

The data for this visualization comes from the World Travel & Tourism Council (WTTC). It shows the total economic contribution of each country’s tourism sector in 2024, measured in U.S. dollars.

America Leads the Pack

The United States has retained its title as the world’s most dominant tourism economy, generating $2.36 trillion of economic contribution in 2024.

The U.S. benefits from strong domestic travel, mature infrastructure, and iconic global destinations such as New York (the eighth most-visited city in the world), Las Vegas, and its vast national parks.

China’s Rapid Climb

China’s tourism sector contributed $1.3 trillion, underscoring its role as a major hub for both international and domestic travel.

While currently second, the WTTC projects China will take the top spot within the next decade. Rising middle-class income and a focus on tourism development continue to propel its growth.

This includes several policies, including easing visa restrictions and introducing new tax-refund shopping policies.

Europe’s Tourism Staples

Europe remains a major player, with Germany, the UK, France, Italy, and Spain all ranking in the top 10.

All of these countries benefit from rich cultural heritage, as well as strong rail and air links.

If you enjoyed today’s post, check out The Top Countries Sending Tourists to the U.S. on Voronoi, the new app from Visual Capitalist.

Tyler Durden Mon, 07/14/2025 - 02:45

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