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China Begins Flooding The Market With DRAM And NAND Memory Chips

China Begins Flooding The Market With DRAM And NAND Memory Chips

Last September, when the memory bubble was just getting started, we said that inevitably "the cure for high commodity prices is, well, high commodity prices." While many financial market maxims have quietly ceased working in recent years thanks to rigged markets due to central bank interventions and market manipulation by both money printers and HFTs, this is one that will never fail, the only question is timing. Furthermore, there is one other thing that can be added as an ironclad footnote here, and that is that once China starts producing the commodity in question, what was formerly price euphoria quickly turns to collapse (as history so vividly demonstrates when looking at any of China's export markets, where price dumping always unleashes hell for domestic producers).  Well, for memory chips, that time has finally come. 

According to Tom's Hardware, Wccftech and techspot, Chinese semiconductor firms have begun flooding the market with domestically produced DRAM and NAND chips in a move that analysts say will drive down memory and storage prices, offering consumers some much-needed relief. Reports suggest that several leading global PC component manufacturers have already started using the chips in upcoming products.

According to screenshots posted on X by tipster @wxnod, Corsair has integrated memory chips manufactured by Chinese DRAM maker ChangXin Memory Technologies (CXMT) into its next-generation memory modules. While Corsair typically sources memory chips from Micron Technology, elevated market prices have reportedly pushed the company to explore more cost-effective alternatives.

As Tom's Hardware lays out, in late 2024, China-based ChangXing Memory Technologies (CXMT) began producing DDR5 modules aimed at the consumer market. Since then, the company has even laid out a roadmap that currently puts its max DDR5 capabilities at 8,000 MT/s across 16 Gb and 24 Gb densities. Fast forward to today, and we're finally seeing Chinese DRAM in a mainstream product, more specifically, a Corsair Vengeance DDR5 16GB stick, running at 6,000 MT/s with CL36 speeds.

In the "CMK5X16G3E60C36A2-CN" part number, the "CN" denotes it's a China-exclusive kit. It's still certified for both Intel XMP and AMD EXPO (since it runs beyond JEDEC speeds), and we also see the rest of the specs printed on the label, such as the timings and operating voltage. There are also "UKCA" and "CE" signs that indicate this kit meets European and British standards for sale in those regions. 

The most important thing to note is that the DRAM manufacturer is listed at ChangXin Technologies or CXMT. Now there are plenty of reasons why Corsair has chosen CXMT over its usual Samsung and SK Hynix partners. The shortages that everyone now knows about are the primary reason, and then there's the cost factor.

The post above shows CPU-Z screenshots clearly revealing that the DRAM powering this kit is from CXMT and not one of the big three memory makers: Micron, Samsung, or SK Hynix. All of those companies are busy selling out their entire production lines to data centers instead, so it makes sense that Corsair is shifting around its suppliers. CXMT might seem like an unusual choice, but the company is well-positioned for this transition. It confirms that consumers are now buying RAM made outside the Micron, Samsung, SK Hynix memory cartel that has controlled the market for 20 years, and has single handedly sent us PPI soaring.

Source: Omair Sharif

While unlike major DRAM manufacturers, CXMT isn't widely seen as possessing the latest cutting-edge tools to produce memory for hyperscalers, it is rapidly catching up: HP placed major LPDDR5 orders with CXMT in January, Qualcomm began custom DRAM work with the company in April, and Dell, Asus, and Acer have all approached the manufacturer. Furthermore, the company isn't tied to any data center contracts (for now), so it has largely empty production lines just waiting for customers. The clientele CXMT seems to be targeting is regular consumers left in the dust by the rest of the RAM industry.

Until now, CXMT has only really sold to local businesses and lesser-known brands, but being featured in a Corsair kit marks a major shift in the landscape. Even if this kit is exclusive to Chinese markets, it's still made by one of the biggest names in consumer memory — a name that people trust. Besides, most customers won't actually check what factory their DRAM chips are coming from as long as the specs seem up to par.

As shown below, the kit in question is a DDR5-6000 CL36, which is not the fastest, but is more than sufficient for gaming and daily tasks. There's generally less than 5% difference between a CL30 and CL36 kit at 6,000 MT/s, so for those saving a lot of money going for the slower latency, it might be worth it in some cases, like - you know - a global RAM shortage. That brings us to the main question: Is this RAM actually cheaper?

There was no explicit mention of a price, so for all we know, Corsair is sourcing cheaper memory from CXMT but still selling it at the same inflated rates. If supply from Samsung, SK Hynix, and Micron is tight, it makes sense that DRAM bought from those companies would be expensive, but CXMT-made DDR5 should be significantly more affordable for it to matter and make an actual dent in the market.

Given how massively Chinese firms are increasing their memory production capacity this year, they can not only facilitate their own domestic needs but also provide a cheaper yet similar spec'd alternative to offshore PC manufacturers. Both CXMT and YMTC are going to double their wafer output capacity through an "Epic Expansion" initiative, which is already underway.

As the memory crisis intensifies and more pressure is exerted on Samsung, SK Hynix, and Micron, Chinese vendors will start to fill in the gaps, and are already seeing major revenue boosts. Expect to see lots of Chinese DRAM solutions powering memory modules from well-known brands at Computex this year.

And while Hefei-based CXMT, or ChangXin Memory Technologies, is China's largest memory chipmaker, it only unveiled its DDR5 portfolio last year. Furthermore, the company only controls about 7.7% of the global DRAM market and counts several major Chinese tech firms, including Alibaba, Tencent, and ByteDance, among its customers. And now that it can easily undercut most of its international competition on price to gain market share, it will do just that. As a reminder, Chinese chips broke DDR3 and DDR4 pricing on the way in, and DDR5 is now next in line for the same treatment.

The company's strategy ties directly to what Seagate's CEO told JPMorgan last Monday (sending the company's stock price tumbling): that building new factories would "take too long," and the stock fell 6% because investors heard "we cannot meet demand." When, not if, CXMT meets that demand from outside the cartel, the supply tightness that has justified the memory ETF rally will collapse. To be sure, political risk remains since CXMT could still get added to any future US blacklist, but European markets are already open and the trade routes for memory chips do not respect Commerce Department guidance.

Why is CXMT going all out now

CXMT, has been ramping up capacity to compete with global leaders Samsung, SK Hynix, and Micron. The company offers DRAM dies in 64Gb and 16Gb configurations with speeds of up to 8,000 MT/s. Other Chinese memory manufacturers, such as YMTC and Jiahe Jinwei, are also expanding capacity to produce DDR5 RDIMMs for data centers and server deployments.

With memory pricing reaching record highs, CXMT's Q1 revenue rose to 50.8 billion yuan ($7.4 billion), up 719% year over year. The company also reported net profit of 33.0 billion yuan ($4.41 billion), compared with a loss of 2.83 billion yuan ($384 million) in the same period last year. The chipmaker is now reportedly preparing for a listing on the Shanghai Stock Exchange, with a multi-billion-dollar IPO planned later this year. Indeed, last week Goldman noted that “CXMT’s updated IPO prospectus, filed last Sunday, indicates that the company is scaling faster and has become materially more profitable than the market had appreciated.” 

Some more details: according to China's Hongxing News on the 18th of May, ahead of its upcoming IPO, CXMT said in a prospectus released the previous day that first-quarter sales came to 50.8 billion yuan (about 11.1 trillion won), up 719.13% from a year earlier. First-quarter net profit (net profit attributable to the parent company) was 24.762 billion yuan (about 5.4 trillion won), up 1,688.3% from a year earlier.

Net profit attributable to the parent company refers to the portion of consolidated net income that ultimately belongs to the parent company's shareholders. CXMT's first-quarter sales and net profit surpassed all listings on the STAR Market, including SMIC (Semiconductor Manufacturing International Corp.), China's largest foundry (contract chipmaker).

As an aside, the CXMT prospectus indicates that the company's yields for DDR5 and LPDDR5X on its 1a (16nm-class) node have reached 80%+.For semicap space the cleaner beneficiaries are likely to be the domestic Chinese equipment vendors (given that China policy is to push for  domestic tools where feasible) such as Naura, AMEC and SMEE, while the case for ASML is more nuanced given ongoing lithography constraints in China.  

But wait, it's not just DRAM and CXMT: last week Reuters reported that China's top flash memory chipmaker YMTC ​has begun the so-called "tutoring" process for a potential ‌initial public offering, where a company receives formal pre-IPO guidance from an investment bank, a regulatory filing showed on Tuesday. NAND maker Yangtze Memory Technologies Co (YMTC) ​has hired CITIC Securities, a Chinese state-owned investment ​bank, to guide its IPO preparation ahead of a ⁠potential stock market listing.

Despite being added to a U.S. trade blacklist in late 2022, which curtailed its access to foreign chipmaking ​tools, the ​Wuhan-based company has ⁠expanded its use of domestic equipment suppliers such as Naura and is aggressively adding capacity

If CXMT is going after the Samsungs and Microns of the world with its DRAM portfolio, YMTC is going right after Sandisk: China's largest ​maker of NAND flash memory chips has two factories with a combined monthly output of 200,000 wafers. YMTC's third factory in Wuhan will start operations late this ⁠year, and ​has capacity to produce 50,000 wafers ​per month by 2027, Reuters has reported previously.

YMTC and CXMT are China's ​best hopes for establishing a foothold in a global memory chip market ‌long ⁠dominated by South Korean and US players, and one can be sure that in a world where even hyperscalers are giving up a huge chunk of margins to memory producers (see "Nvidia's Vera Rubin Rack Will Cost $7.8MM: Here's What's In It"), Beijing will do everything it can - and must - to win over as many margin-conscious companies as it can.

Source

And it will do so using the oldest trick in the Chinese book: by massively undercutting all of its established competition on price. 

Tyler Durden Tue, 05/26/2026 - 08:25

Futures Rise, US Stocks Set For New Record As Hopes For Iran Peace Deal Persist Despite Bombing

Futures Rise, US Stocks Set For New Record As Hopes For Iran Peace Deal Persist Despite Bombing

US futures are higher again, led by tech and small caps. As of 7:30am, S&P 500 futures rose 0.7%, signaling US stocks are set for another record high when the market reopens after Memorial Day weekend. Nasdaq 100 contracts, supercharged by the artificial intelligence trade, gained more than 1% as Magnificent Seven big tech shares rallied in premarket trading. In premarket trading, all Mag 7 are higher led by NVDA (+0.8%), TSLA (+0.8%) and GOOG/L (+0.7%). 10-year Treasury yields fell six basis points and the dollar was steady after dropping against major peers in the previous session. Europe’s benchmark Stoxx 600 index slipped, handing back some of Monday’s 1% advance. Brent trading below $100 on hopes of deescalation between Iran and the US. Yet even though we have seen a barrage of optimistic media reports regarding progress on the US-Iran negotiation; on Monday night the US conducted "defensive" strikes on Iranian military targets, which the Iranian foreign ministry moments ago condemned as ceasefire violations.  Gold and silver are both lower this morning, falling 1.0% and 2.5%, respectively; Ags are mostly lower. Today's economic data slate includes the April Chicago Fed national activity index and May Philadelphia Fed non-manufacturing activity (8:30am), March FHFA house price index, S&P Cotality home prices and FHFA 1Q house price purchase index (9am), May consumer confidence (10am) and May Dallas Fed manufacturing activity (10:30am).

In premarket trading, Mag 7 stocks are all higher (Nvidia +1.2%, Tesla +1%, Apple +0.6%, Amazon +0.4%, Alphabet +0.2%, Microsoft +0.2%, Meta Platforms +0.1%) 

  • Amentum Holdings Inc. shares (AMTM) gain 0.4% after BNP Paribas initiated coverage of the engineering firm with a recommendation of underperform as it sees growth lagging peers.
  • AutoZone shares (AZO) fall 5.6% after it reported net sales for the third quarter that missed the average analyst estimate.
  • Booz Allen Hamilton Holding Corp. shares (BAH) are up 1.4% after Stifel upgraded the company to buy from hold.
  • Bridgebio Pharma shares (BBIO) dip 0.8% after Raymond James downgraded the drugmaker to market perform from outperform, citing near-term headwinds.
  • Circle Internet Group Inc. shares (CRCL) rise 0.6% after it was initiated at KeyBanc Capital Markets with a recommendation of sector weight as it sees the stablecoin issuer being a leader in the sector, however dealing with lower margins.
  • Okta Inc. shares (OKTA) are up 2.3% after Arete upgraded the software company by two notches, to buy from sell.
  • Pembina Pipeline Corp. (PBA) rises 0.9% after it was upgraded to buy from hold at TD Cowen on sector growth.
  • Shares in rocket and satellite companies (RDW +16%, MDA +17%, ASTS +7%) are rallying, set to extend recent gains since SpaceX filed publicly for what stands to be the largest-ever initial public offering.
  • Shares in semiconductor companies with exposure to Asia (WOLF +8.5%, SMTC +4%) are rallying on optimism over a potential breakthrough in technology by Huawei.

Shares in rocket and satellite companies rallied in US premarket trading Tuesday, extending recent gains. The sector has advanced since SpaceX filed publicly for what stands to be the largest-ever initial public offering. Among the movers, Redwire Corp. climbed 15%,  MDA Space Ltd. jumped 13% and Firefly Aerospace Inc. rose 11%.

Investors are largely shrugging off a modest rebound in crude prices after the US hit Iranian ships and missile launch sites, and Iran’s Tasnim news agency said the Islamic Revolutionary Guard Corps had fired at a US F-35 fighter jet. Israel also threatened to intensify its strikes against Hezbollah in Lebanon. While the news flow clouds prospects of a swift resumption in oil flows through the Strait of Hormuz, investors appear optimistic that peace talks can still progress.

US authorities have described their strikes as defensive in nature, following President Donald Trump’s comment on Monday that talks were “proceeding nicely.” And despite Tuesday’s increase, oil prices are on track for a drop in May after rising in the previous two months.

"The main driver of the mood music is the story in Iran,” Mizuho Bank Ltd. strategist Jordan Rochester said. Despite the strikes and belligerent rhetoric from Iran, “both sides are closer than they have been to date to getting something over the line. The US has made it clear it does not want the kinetic action to re-start,” he said. 

With the Middle East de-escalation lifting equity sentiment, “one might have expected to see the dollar weaker across the board – but it has been holding up quite well,” Turner wrote. “We suspect this is being driven by the view that the Federal Reserve is about to turn less dovish.” 

As Big Tech raises hundreds of billions of dollars to fund AI investment, Wall Street banks are increasingly finding they have to trade more credit derivatives to keep doing business with the hyperscalers.

JPMorgan strategists said low-volatility stocks look attractive after a selloff triggered by rising bond yields, regardless of where yields go from here. Their US basket includes the likes of P&G, Coca-Cola, J&J and American Electric Power. Meanwhile, Morgan Stanley's Mike Wilson said stock markets can handle higher bond yields as long as strong economic growth is the main catalyst, rather than a more aggressive central bank stance.  

Meanwhile, the SEC has given the go-ahead for Nasdaq to list index options based on the price of Bitcoin, the latest sign that Wall Street is becoming more tightly integrated with the world of digital assets.  South Korea — the world’s best-performing yet most volatile market — is set to debut its first ever single-stock leveraged ETFs this week, tools that have the potential to amplify gains and losses. Analysts expect strong demand from the nation’s more than 14 million retail investors.

Investors are also closely watching the outlook for Federal Reserve policy, with expectations growing that the central bank will need to keep policy tight after the oil-price jump spurred the biggest inflation surge since 2023. A number of officials have abandoned their easing bias, while Trump — who has repeatedly called interest-rate cuts — said on Friday he wanted new Chair Kevin Warsh to lead the Fed independently.

An inflation gauge due later this week is expected to show annual price growth ticking up further in April, potentially reinforcing expectations that policy will stay tight. Chris Turner at ING Bank NV also highlighted the possibility of a strong jobs print later Tuesday, following last week’s robust reading.  BlackRock’s Navin Saigal says the Fed may have enough reason to justify a rate cut rather than a hike under new chairman Kevin Warsh. The swaps market is not convinced, pricing in a better than 80% chance of a 25-bpt hike by the end of the year.

Prints this week should shed light on how American businesses are dealing with unresolved questions around tariff refunds. AutoZone reports before the open on Tuesday, followed a day later by HP, and Costco on Thursday. 

This week is a big one for economic data, which according to Bloomberg Economics’ Anna Wong “speak directly to the two questions markets care about: whether US consumers are buckling under high gasoline prices, and whether inflation is too sticky for the Fed’s comfort.” 
At 10 a.m. ET, she expects confirmation of a modest erosion of consumer confidence in May, followed on Thursday by a still-hot reading for April of the PCE deflator, the Fed’s preferred inflation gauge.

Europe’s benchmark Stoxx 600 index slipped 0.2%, handing back some of Monday’s 1% advance, as oil prices climbed, fueling concerns that a resolution to the Iran war remains out of reach. Auto and technology stocks underperformed, while the mining sector led gains.  Here are some of the biggest movers Tuesday:

  • Kingfisher shares roe as much as 8.3%, briefly hitting a two-month high, after the DIY-retailer reported first-quarter sales and reiterated its guidance, which analysts said is providing some reassurance following recent pressure on the stock.
  • Atalaya rose as much as 7.2% after the miner’s earnings significantly beat consensus forecasts.
  • Industrie De Nora shares rose as much as 11%, briefly hitting their highest level since January, after the maker of industrial electronic equipment said it has agreed to buy BW Water, which Jefferies said will help increase exposure to high-growth markets.
  • CVS Group shares advanced as much as 5.8%, the most since April 8, after the UK veterinary services provider launched a £50 million share buyback program.
  • Ferrari shares fell as much as 7.8% in Milan, the most in more than seven months, after analysts criticized the design of the supercar maker’s first fully electric model, priced at €550,000.
  • Vodafone shares fell as much as 4.9% after being downgraded to underperform by Bank of America.
  • Melrose shares fell as much as 7.3%, most since Feb. 27, after authorities ordered precautionary evacuations around the company’s GKN Aerospace facility in California following a thermal issue with a storage tank.

Asian shares are headed for a fourth straight session of gains, as optimism around artificial intelligence outweighed lingering unease over US-Iran talks. The MSCI Asia Pacific Index gained as much as 0.7%, with SK Hynix, Samsung Electronics and SoftBank among the biggest boosts. South Korea’s Kospi climbed 2.6% to a record, while Hong Kong shares also rose as the markets reopened after Monday’s holiday. Tech hardware stocks have been driving gains in the region despite concerns over elevated valuations and sustainability of hyperscaler spending. The prospect for a negative economic impact from the Iran war has also been shrugged off, even with a rebound in oil prices after fresh US military strikes. This week, investors will be watching rate decisions in South Korea and New Zealand to gauge the impact of higher fuel prices on inflation. Other key events include earnings from Chinese EV smartphone and EV maker Xiaomi due later Tuesday.

In FX, the Bloomberg Dollar index is higher by 0.1% with gains in the greenback most pronounced against the kiwi ahead of Wednesday’s RBNZ rate decision. 

In rates, Treasuries hold solid gains as US trading resumes after Monday’s holiday, after yields gapped lower at the Asia open on mounting optimism about an end to the US war on Iran. Lower energy prices relative to Friday’s close have sent US yields lower across the curve with the 10-year down 5bps; US yields are near session lows are as much as 9bp richer on the day intermediate sector as swaps price in less chance of a Fed rate hike by mid-2027 (Fed-dated OIS contracts price in around 19bp of tightening by the end of this year vs about 27bp at Friday’s close, and a policy-rate peak of around 3.93% by the middle of next year vs 4% Friday). US yields are 6bp to 9bp lower across a steeper curve, with 5s30s spread about 2bp wider on the day; 10-year near 4.48% is richest since May 14. Front-end and belly sectors have support from fading Fed rate-hike expectations as oil prices fall; WTI crude futures remain about 4.5% lower after rebounding slightly following fresh US military strikes in Iran. Treasury auction cycle begins with $69 billion 2-year note at 1pm New York time, followed by $70 billion 5-year and $44 billion 7-year notes Wednesday and Thursday. WI 2-year yield near 4.055% is about 24bp cheaper than last month’s auction, which tailed by just 0.1bp. IG dollar issuance slate includes several offerings so far. Dealer forecasts are for about $30 billion during the holiday-shortened week. Focal points of US session include consumer confidence gauge and 2-year note auction. 

In commodities, brent crude futures are up 3.7% on the session but down almost 4% on a two day basis, trading just below the $100/bbl level. Monday’s lack of settlement for WTI explains the current intraday divergence between the two benchmarks with the WTI July contract shedding 3.9%.

Today's economic data slate includes weekly ADP employment change (8:15am), April Chicago Fed national activity index and May Philadelphia Fed non-manufacturing activity (8:30am), March FHFA house price index, S&P Cotality home prices and FHFA 1Q house price purchase index (9am), May consumer confidence (10am) and May Dallas Fed manufacturing activity (10:30am). Fed speaker slate includes Kashkari at 8:20pm, speaking at a Bank of Japan conference

Market Snapshot

Top Overnight News

  • US and Israeli jets struck Iranian vessels in the Strait of Hormuz and other targets, hours after Donald Trump said talks with Tehran on an interim deal were progressing. Israel vowed more strikes on Hezbollah and Iran demanded any deal to reopen the strait include a halt to fighting in Lebanon.
  • Russian Foreign Minister Sergei Lavrov advised Marco Rubio to evacuate American citizens and diplomats from Kyiv. He warned that the Kremlin plans to continue heavy strikes on the Ukrainian capital. BBG
  • Huawei Technologies said on Monday it will make industry-leading semiconductors using a new technology in five years, underscoring Beijing's efforts to neutralize U.S. sanctions that have made it hard for China to build cutting-edge chips. RTRS
  • Workers’ pay packets are shrinking in relation to prices in a growing number of rich countries as the energy shock unleashed by the Iran war chokes off a nascent recovery in real wages. FT
  • The ECB should raise interest rates in June, even if ongoing peace talks with Iran yield a deal, as the conflict has been far longer than projected and high energy prices are spilling into the broader economy. RTRS
  • China let the interest rate on a one-year policy loan to banks decline to a record low, according to people familiar with the matter, a sign Beijing is stepping up efforts to support an economy that’s losing momentum. BBG
  • Japan's core inflation as measured by a new central bank gauge accelerated in April ‌and blew past its 2% target, data showed on Tuesday, helping make the case for an interest rate hike as soon as next month. BBG
  • ECB’s chief economist sees no need to correct markets from anticipating a rate hike next month. Nikkei
  • NYC Mayor Zohran Mamdani is set to unveil a plan today to exempt some distressed rent-stabilized landlords. It would allow eligible owners to impose a one-time rent increase on certain vacant units. WSJ
  • Hedge funds and mutual funds each carry above-average equity market exposures. Hedge funds and mutual funds initially reduced exposure to US equities at the onset of geopolitical tensions in March but hedge funds have since lifted net leverage to the 85th percentile relative to the last five years. Although mutual funds lifted cash allocations from a record low of 1.1% at the start of 2026 to 1.4% at the start of April, cash balances as a share of assets still remain extremely low relative to history. GIR

Iran Conflict News

  • Over the weekend, US President Trump posted that an agreement has largely been negotiated, subject to finalisation between the US, Iran and various Middle Eastern countries, while the final aspects and details of the deal were being discussed, and will be announced shortly. He followed up by stating that negotiations are proceeding in an orderly and constructive manner, while he informed representatives not to rush into a deal and that time is on their side.
  • Reuters reported that the proposed framework is broken into three stages: 1) formally ending the war, 2) reopening the Strait of Hormuz and 3) opening an extendable 30-day window for broader negotiations on nuclear issues and sanctions relief. Axios further reported, citing a US official, that an agreement would involve a 60-day ceasefire extension during which the Strait of Hormuz would be opened, Iran would be able to freely sell oil, and negotiations would be held on curbing Iran's nuclear programme.
  • However, a US senior official told Axios that the White House doesn’t expect an agreement to end the war with Iran on Sunday and believes it could take several days for the deal’s approval by Iran’s leadership.
  • Elsewhere, Iran's Foreign Minister Araghchi travelled to Doha for talks with Qatar's PM.
  • US Central Command spokesperson said US forces conducted self-defence strikes in southern Iran on Monday, in which US forces hit targets, including missile launch sites and Iranian boats attempting to emplace mines. Furthermore, CENTCOM said it will defend troops while maintaining the ceasefire restraint and stated that strikes have concluded for now.
  • Explosions were reported in Iran's Bandar Abbas city, with the cause initially unknown, while similar sounds were also heard in the Persian Gulf, around Sirik and Jask. A Mehr News Agency reporter stated shortly after that the situation in the city was normal and completely under control, with no reason for any concern for the people of Bandar Abbas. However, N12 reporter Nitzan Shapira posted on Telegram that unofficial channels identified with the IRGC said fighter jets attacked two boats in the port of Bandar Abbas and that four people were killed. Furthermore, Iranian media reported the killing of a number of Iranians as a result of the American-Israeli attacks on Iranian ships in the Strait of Hormuz, according to Asharq.
  • US President Trump posted "The Enriched Uranium (Nuclear Dust!) will either be immediately turned over to the United States to be brought home and destroyed or, preferably, in conjunction and coordination with the Islamic Republic of Iran, destroyed in place or, at another acceptable location, with the Atomic Energy Commission, or its equivalent, being witness to this process and event."
  • US Secretary of State Rubio said Iran negotiations will take a few days and that President Trump said he will make a good deal or no deal, while Rubio added that there were some talks going on in Qatar and thinks there is a lot of talking back and forth going on about specific language in the initial document. Rubio commented that negotiating the language of the deal with Iran could take a few days, and the Strait of Hormuz is going to be opened one way or the other.
  • US Secretary of State Rubio said US strikes on Iran do not preclude a diplomatic deal and that an Iran deal is possible within days, while Al Jazeera reported that the US strike on Iran's Bandar Abbas is a 'small hurdle' but unlikely to derail peace talks.
  • Iranian Supreme Leader Khamenei said America will no longer have a safe haven in the Middle East; "the region will no longer serve as shields for American bases." He further said the clock cannot be turned back and the "shaky Zionist regime will move closer to the end of its ominous existence."
  • Iran's IRGC said Iran has the right to respond to respond to any US ceasefire breach. They have identified hostile aircrafts entering Iran's airspace in the Gulf region and have shot down one MQ-9 drone.
  • IRIB News said the claims by Al Arabiya regarding the 14-point MOU between the US and Iran are false and baseless.
  • Iran's Supreme Leader issued directives on officials' war duties, including managing wartime economy and for officials to seek reparations from enemies, while it was also stated that officials are to use the Hormuz Strait as leverage.
  • Iranian official source said Tehran warned Washington that any Israeli attacks on Beirut or the southern suburbs would seriously jeopardise ongoing efforts to end the war, and could derail the diplomatic track altogether, according to journalist Hashem.
  • Iranian National Security Committee Chairman said if the US side takes confidence-building measures at the implementation level and we see tangible results, this could be the basis for further steps. He added that Iran will not compromise on national interests.
  • IRGC senior spokesperson said, "If we are attacked, our attacks will be more intense, heavier and stronger", according to IRIB News citing an Al Jazeera interview. The report added that "The response to any new aggression will be different from what it has been before."
  • Israeli Broadcasting Authority said the Israeli army has begun mobilising its soldiers with the aim of intensifying its operations in Lebanon, according to Al Jazeera.
  • Israeli army intensified strikes in southern Lebanon on Monday, as Israeli PM Netanyahu said he had ordered the military to escalate its offensive in Lebanon in an effort to "crush" Hezbollah, according to CBS News and AFP.
  • Israeli warplanes conducted airstrikes on the town of Al-Duweir in the Nabatiyeh district, southern Lebanon, according to Al Mayadeen.
  • Hezbollah said it targeted Israeli forces at the headquarters of the 300th Brigade in Shumera.

A more detailed look at global markets courtesy of Newsquawk

APAC stocks were mixed as the recent optimism regarding a nearing US-Iran agreement was clouded by reports that the US launched 'self-defence' strikes in southern Iran against missile launch sites and Iranian boats attempting to lay mines, although the market reaction to the renewed attack was limited, with some reports downplaying the likelihood that it could derail peace talks. ASX 200 was subdued with the index led lower by utilities and energy, but with the downside limited amid a lack of data releases and following the mixed geopolitical signals. Nikkei 225 pulled back after printing a fresh record high and briefly returned to beneath the 65,000 level amid profit taking and as participants reflected on the latest geopolitical headlines, while there were comments from BoJ Deputy Governor Himino that they will continue to raise the policy rate, adjust the degree of monetary accommodation according to economic activity, prices and financial conditions. Hang Seng and Shanghai Comp were mixed with the mainland subdued alongside the geopolitical uncertainty, while the Hong Kong benchmark outperformed on return from the holiday closure as tech strength helped participants shrug off China's announcement late last week regarding a cross-border investment crackdown.

Top Asian News

  • Japanese Finance Minister Katayama said authorities are watching Middle East developments carefully and will act in a timely manner to cushion the impact on households.
  • Japanese Deputy Chief Cabinet Secretary Ozaki said they are aware of reports regarding consumption tax, but nothing decided yet and will refrain from prejudging.

European bourses (STOXX 600 -0.3%) trade mixed. Risk sentiment has softened after reports overnight that the US conducted strikes on Iranian missile launch sites and mine-laying boats in southern Iran overnight, with US CENTCOM citing self-defence. To add, US Secretary of State Rubio tempered expectations, saying a deal could take a few days and warned that the Strait of Hormuz would be opened "one way or the other." Sectors lack a clear directional bias. Basic Resources (+1.2%) is the clear sector outperformer, helped by UK miners (Glencore, Rio Tinto). To the downside lies Technology (-1.2%) and Autos (-1.7%).

Top European News

  • EU Commissioner for Startups Research and Innovation said the UK could join a EUR 4bln EU startup fund this year, according to FT.

FX

  • G10s are broadly lower against the Buck as thin risk-on holiday trade on Monday was partially pared as US CENTCOM conducted "self-defence" strikes in Iran and Iran issued unconstructive rhetoric regarding the strikes.
  • DXY trades modestly higher, returning to Monday’s session highs amid the aforementioned geopolitics and a general rebound in crude benchmarks. Dollar saw upside this morning on rare remarks from Iran’s Supreme Leader Khamenei, suggesting “America will no longer have a safe haven in the Middle East…. the region will no longer serve as shields for American bases". USD strength seen on these remarks was pared just above Monday's session highs of 99.12. DXY should remain supported by its 50DMA at 98.93, as it was on Monday, with resistance at 99.50.
  • Kiwi is the worst G10 performer, heading into the RBNZ meeting and OCR projections on Wednesday, with Antipodeans generally underperforming amidst the modestly sour tone (AUD/NZD +0.3%, NZD/USD -0.5%). RBNZ is expected to keep the OCR unchanged at 2.25% for the third consecutive meeting as geopolitical uncertainty and mixed data support the case for a pause. Markets currently assign c. 70% probability of a hold, with risks skewed to tightening.
  • GBP is also softer as energy is boosted on geopolitics, and GBP/USD reverses from the 1.35 mark after gains on bank holiday Monday.
  • EUR is one of the best-performing G10s as it resides a touch below 1.1650 after soft EZ, and hawkish US data pushed EUR/USD lower last week. The European docket for the remainder of the week, with EZ inflation and GDP data scheduled.

Central Banks

  • ECB's Schnabel said the ECB should raise rates in June, even if an Iran peace deal is struck, while she sees signs of energy inflation spillovers.
  • ECB's Lane said the ECB is not pre-committing to a particular path after June, Nikkei reported.
  • BoJ Deputy Governor Himino said higher long-term interest rates are being interpreted by markets as a sign of persistent inflation concerns worldwide, while he added that monetary policy will be guided appropriately to achieve the inflation goal stably and sustainably. Himino also commented that the economic outlook can change depending on the Middle East situation and they will consider the timing and pace of adjustment while monitoring how Middle East developments affect Japan's economy, prices and examining the likelihood of realising the baseline scenario. Furthermore, he said they will continue to raise the policy rate and adjust the degree of monetary accommodation according to economic activity, prices and financial conditions.

Fixed Income

  • Fixed benchmarks are mixed, but the bias throughout the European morning is negative. USTs are stronger (given the lack of settlement on Monday), Gilts play catch-up to peers (given Monday’s Bank Holiday), whilst Bunds move lower. To recap recent geopolitical updates, strength in fixed benchmarks was facilitated by the weekend's geopolitical positive updates, in which reports suggested that the US-Iran were nearing a deal. However, the complex then waned from overnight highs amidst reports of the US conducting “self-defence” strikes near Bandar Abbas. The move further exacerbated in European hours after the Iranian Supreme Leader said that America no longer has a safe haven in the Middle East, adding that the region will no longer serve as a shield for US bases.
  • Markets now remain attentive to whether Iran decides to physically retaliate against the US’s strikes, or whether a deal between the US and Iran can be ironed out. Geopolitics aside, the US data slate includes the Chicago Fed National Activity Index, CB Consumer Confidence and the Dallas Fed Manufacturing Index; in Europe, ECB speak from Sleijpen will be in focus.
  • USTs are firmer by c. 15 ticks, but off c. 10 ticks from Monday’s highs; currently trading within a 109-17 to 110-00 range.Elsewhere, Gilts are firmer by around 35 ticks and ultimately playing catch-up to the gap higher seen on Monday; UK paper trades within the 88.17 to 88.70 range. Finally, the German paper has moved lower this morning, given the positive bias seen in the crude complex. Bunds currently off by around 30 ticks and within a 125.95 to 126.26 range. Earlier, hawkish speak from Schnabel failed to move Bunds; she noted that the Bank should raise rates in June, even if a peace deal with Iran is struck.

Commodities

  • Crude futures rebound following yesterday's hefty losses, with Brent futures firmer by 3.50%, whilst WTI/Brent intraday change quotes diverge given the lack of WTI settlement due to the US holiday yesterday. In terms of geopolitics, US forces carried out “self-defence” strikes in southern Iran against missile launch sites and boats allegedly attempting to lay mines. CENTCOM said the strikes had concluded, “for now”. Over in Iran, the IRGC said Tehran has the right to respond to any US ceasefire breach, adding that it had identified hostile aircraft entering Iranian airspace over the Gulf and shot down an MQ-9 drone. To add, Supreme Leader Khamenei has reportedly yet to approve progress toward a potential US-Iran accord.
  • Brent Aug’26 resides towards the upper end of a USD 94.36-97.08/bbl range, while WTI Jul’26 sits in a USD 89.41-93.90/bbl band. Dutch TTF prices are firmer by some 4% intraday and back above the EUR 47/MWh mark after oscillating around EUR 46/MWh yesterday.
  • Spot gold falls with the yellow metal dipping under yesterday’s USD 4,549/oz low after matching the high at USD 4,580/oz, with today’s trough at USD 4,518/oz. Spot silver is also weaker, with prices slipping from a USD 78.39/oz to a current low at USD 75.73/oz.
  • Base metals are mixed with the LME returning from its long weekend. LME and CME copper trade relatively flat, with price action rather varied across different base metals. LME copper resides in a narrow USD 13.62k-13.73k/t range.
  • Malaysia has imposed a 10% import duty on some gold bar shipments.
  • UBS lowers year-end 2026 Gold price forecast to USD 5500/oz; citing persistent yield and USD headwinds

Geopolitics ex Iran

  • Russian Foreign Minister Lavrov called US Secretary of State Rubio to urge the evacuation of US citizens and diplomats from Kyiv, according to the Russian Foreign Ministry. Furthermore, the US State Department said Rubio exchanged views with Lavrov on the Russia-Ukraine war, bilateral relations and the situation with Iran.
  • South Korean military said North Korea fired an unidentified projectile, according to Yonhap.

US Event Calendar

  • 8:30 am: United States Apr Chicago Fed Nat Activity Index, est. -0.03, prior -0.2
  • 9:00 am: United States Mar FHFA House Price Index MoM, est. 0.1%, prior 0%
  • 10:00 am: United States May Conf. Board Consumer Confidence, est. 92, prior 92.8
  • 10:30 am: United States May Dallas Fed Manf. Activity, est. 0, prior -2.3
  • 8:20 pm: United States Fed’s Kashkari Speaks at Bank of Japan Conference

DB's Jim Reid concludes the overnight wrap

With the US and UK on holiday yesterday, we will include a brief look at the week ahead today and also briefly recap last week. My knowledge of the last 24 hours is slightly clouded by being far away from my screen, having spent yesterday managing a cricket tournament for 70 under nine children on our local village green, on what turned out to be the hottest day in May in UK history, surpassing the previous record set in 1944. It is fair to say that the real hero of the day was the driver of the ice cream van who swung by at just the right moment.

The team I coach won the group stage, only to lose in the semi final to the fourth place team that we had beaten earlier. The chairman has given me his backing to stay on in my post, but the children (mostly my two twins) were calling for me to be replaced. With player power being what it is these days, my days may be numbered.

Since the weekend, the real hope is that the days may also be numbered for the war in Iran as well, with momentum building since the start of the weekend that a deal could be in the works. Brent, which ended last week at $103.54/bbl, is this morning trading at $97.87/bbl, around -5.48% lower than Friday’s close.

However, Brent had got as low as $96.02 late yesterday before news overnight that US and Israeli jets conducted fresh strikes in Southern Iran, hitting missile launch sites and mine-laying boats. These actions were described as "defensive" and not an end to the ceasefire with Iran.
Net net, optimism is still elevated that an agreement can be made to end the war. We have been here before, of course, but it has felt for some time that the move towards peace has been three steps forward and one or two back. It is now 48 days since the main kinetic encounters, and my view for a while has been that such a prolonged truce and ceasefire would not have held if the US genuinely wanted to continue strikes, unless there was absolutely no alternative. Last night's targeted action is clearly a warning shot that the ceasefire is fragile though, so we will have to see what the next few days of negotiations bring.

This morning S&P 500 futures are +0.62% and NASDAQ futures +0.85% which is a few tenths of a percent lower than most of yesterday before the overnight strikes. In Asia, the KOSPI (+2.96%) is leading gains and reaching a new record but it was on holiday yesterday along with the Hang Seng (+0.53%).  The Nikkei (-0.11%) is slightly lower with slightly bigger falls for the Shanghai Composite (-0.81%).

European equity futures are down two or three tenths but this follows a strong day on Monday with the DAX (+2.01%) strength typifying the move. Euro Stoxx (+1.11%) closed within a whisker of pre-Iran War levels and if you're looking for a highlight then the FTSE-MIB (+2.24%) finally cleared its all-time high last seen back in the year 2000!! So a momentous day for Italy!

10yr European bonds were around 9 to 12bps lower across the curve yesterday even if futures suggest a little bit of a sell off at the open. This morning 10yr USTs have reopened -5.1bps lower after the long weekend.

Moving on to the rest of this week, inflation once again dominates with important price data across the US, Europe and Japan. In the US, the clear focal point is Thursday’s April personal income and spending report (Thursday), which contains the Fed’s preferred inflation gauge. Our economists expect core PCE inflation at around +0.3% month-on-month, unchanged from March, with the year-on-year rate edging higher. This release matters not just for the inflation print itself, but for how it fits with the broader narrative of sticky services inflation and resilient demand. On the real economy side of the same report (Thursday), our economists expect momentum to cool after a very strong March, with personal consumption growth slowing back to around +0.3% month-on-month and personal income rising by roughly +0.4%.

This comes after a hawkish speech from Waller on Friday. He discussed how the recent labour market and inflation data had caused him to reevaluate the balance of risks with inflation becoming the “driving force” behind monetary policy in the near term. In particular, he noted that he would support changing language in the statement to remove the easing bias and make it clear that “a rate cut is no more likely in the future than a rate increase”. In light of this there is a lot of Fedspeak to watch this week. You can see a list in the day-by-day calendar at the end as usual but keep an eye on Minneapolis’s Kashkari (today) and Dallas’s Logan (tomorrow)—both of whom had dissented against the easing bias in the April statement. They are likely to repeat their view that the stance of monetary policy should be more balanced, particularly as inflation risks remain front of mind.

Staying with the Fed, last Friday, our Chief US economist, Matt Luzzetti, wrote an interesting piece entitled “overinsured” where he discusses how the Fed has delivered 175bps of rate cuts in this cycle even as inflation has remained well above target, framing the last round as “insurance” or “risk management” cuts in response to elevated downside labour market risks. Matt suggests that relative to a set of standard policy rules, the first set of cuts in 2024 was appropriate. But following the second set last year, and the recent acceleration of inflation, the fed funds rate is now significantly below all policy rule settings. This finding is robust to different plausible estimates of r-star and the use of economic forecasts instead of current inflation and unemployment in the policy rules. See Matt’s piece here for how future rate hikes might be interpreted as a prudent reversal of that insurance.

Beyond PCE, Thursday also brings durable goods orders (Thursday), where our economists look for a modest headline increase consistent with steady but unspectacular capital spending momentum. Earlier in the week, the Conference Board’s consumer confidence index (tomorrow) is expected to edge lower, potentially reflecting the cumulative impact of higher rates and policy uncertainty. Weekly initial jobless claims (Thursday) remain an important high-frequency signal on labour market conditions, although holiday effects may add some volatility.

In Europe, attention turns to the May flash inflation prints at the end of the week, with Germany, France, Italy and Spain all reporting on Friday, ahead of the Eurozone aggregate the following week. Our economists expect inflation to remain above target across the region. Alongside the data, the ECB publishes the account of its April meeting (Thursday) and its Financial Stability Review (Wednesday), offering further insight into how policymakers are balancing lingering inflation pressures against softer growth and financial stability considerations.

In Asia, Japan is the key focus. Friday’s Tokyo CPI (Friday) will provide an early read on national inflation trends, alongside April industrial production and retail sales (Friday). Our economists expect inflation measures to firm modestly, underscoring that price pressures remain present even as activity data stay mixed. Elsewhere, China releases industrial profits (tomorrow), Australia publishes its April CPI (Wednesday), and the RBNZ announces its latest policy decision (tomorrow), where our economists expect the cash rate to be left unchanged.

On the corporate side, earnings highlights include US tech names such as Dell, Marvell and Salesforce, alongside consumer-facing firms including Costco and Dollar Tree, with most results clustered around mid-to-late week.

Recapping last week now, more for those who were off yesterday. Markets put in a strong performance overall, as hopes mounted for some kind of US-Iran deal. So that raised investor expectations that the Strait of Hormuz might reopen in the weeks ahead, which helped to bring down oil prices. Indeed, Brent crude fell -5.24% last week to $103.54/bbl, whilst WTI fell -8.37% to $96.60/bbl. Moreover, investors dialled back their expectations for a more protracted conflict, with the 6-month Brent future also down -2.97% last week to $88.28/bbl.  

That decline in oil prices meant investor fears eased about a stagflationary shock to the global economy, supporting bonds and equities on both sides of the Atlantic. In fact, the S&P 500 posted an 8th consecutive weekly advance for the first time since 2023, rising another +0.88% over the week. And over in Europe, the STOXX 600 posted a +3.00% advance, closing at its highest level in the last month. Interestingly, the latest advance took place despite weakness among the big tech stocks, with the Magnificent 7 falling -0.76% last week, ending a run of 7 consecutive weekly gains.  

With oil prices coming down, that also helped to ease fears about near-term inflation, which again was clear on both sides of the Atlantic. For instance, the US 1yr inflation swap fell -31.0bps to 3.11% and the Euro 1yr inflation swap fell -15.4bps to 3.62%. But despite easing fears on the inflation side, investors also dialled up the chance that the Fed would hike rates this year, with 24bp of rate hikes now priced by December. That included a +3.2bps rise on Friday as the University of Michigan survey showed 5-10 year expectations spiking from 3.4% to 3.9% in May and Fed Governor Waller struck a more hawkish tone, saying that he’d support removing the easing bias in the Fed’s statement. That backdrop meant that front-end Treasury yields continued to move higher last week, with the 2yr Treasury yield up +5.1bps to 4.12% (+3.9bps Friday), its highest level since February 2025. However, the 10yr yield came down, falling -3.5bps on the week to 4.56%.

In Europe however, sovereign bonds saw a much stronger rally thanks to the oil price declines, alongside worse-than-expected flash PMIs. So in contrast to the US, investors dialled back their expectations for rate hikes from the ECB this year. That meant just 65bps of hikes were priced by the December meeting, down from 75bps the previous week. In turn, yields fell across the continent, with the 10yr bund yield down -12.9bps to 3.04%, whilst 10yr gilt yields fell -27.5bps to 4.90%, marking their biggest weekly decline since 2023. Otherwise in fixed income, US credit markets outperformed last week, with IG (-1bps) and HY spreads (-7bps) tightening slightly. By contrast, European spreads widened, with both IG (+1bps) and HY spreads (+13bps) rising.

Tyler Durden Tue, 05/26/2026 - 08:25

CDC Adds Another Airport For Screening Of Travelers Who Might Have Ebola

CDC Adds Another Airport For Screening Of Travelers Who Might Have Ebola

Authored by Zachary Stieber via The Epoch Times,

Two more airports have been added as options for people traveling from countries affected by the Ebola outbreak in Africa.

People traveling from Congo, Uganda, or South Sudan can go to the Hartsfield-Jackson Atlanta International Airport in Atlanta, Georgia, and George Bush Intercontinental Airport in Houston, Texas, starting May 26, Customs and Border Protection said on May 22.

The CDC said in a statement that Atlanta airport “has established operational procedures in place” for enhanced screening, which is one layer of the country’s approach to public health on top of screening individuals overseas before they board flights, having airlines report suspected illnesses among passengers, and monitoring people after they arrive.

On May 21, U.S. officials announced that U.S. citizens and legal residents who had been in Congo, Uganda, or South Sudan within 21 days of arrival must go through Washington Dulles International Airport in Virginia, outside the nation’s capital.

CDC officials said that the travelers would be escorted to a special area of the airport to complete a questionnaire about their travel history and symptoms, and to provide their contact details.

CDC personnel would observe people for signs of illness and take their temperatures with no-contact thermometers.

Travelers without symptoms would be allowed to go to their final destinations; travelers with symptoms would be evaluated by a CDC public health officer and may be sent to area hospitals.

U.S. officials have said that there are no cases of Ebola in the United States linked to the outbreak, which was confirmed in Congo earlier this year and is up to more than 1,000 suspected and confirmed cases.

One case was confirmed in an American doctor, Dr. Peter Stafford, who was working in Congo. He and his family were flown to Germany for treatment, while another doctor, Dr. Patrick LaRochelle, was transported to the Czech Republic for monitoring.

Ambulance staff at the Ronald Reagan UCLA Medical Center during their Ebola virus readiness drill to test their ability to diagnose and treat Ebola patients in Los Angeles on Oct. 17, 2014. Mark Ralston/AFP via Getty Images

Serge, a Christian organization with which Stafford and LaRochelle work, said on May 24 that LaRochelle is asymptomatic. The group previously released a statement from Stafford saying the doctor was “cautiously optimistic” after beginning to receive care in Germany.

A White House official told The Epoch Times in a recent email that decisions on whether to move Americans who contract or are exposed to Ebola in another country to the United States will be made on a case-by-case basis, “but we will do what we need to to ensure health of Americans and minimize transmission odds.”

The CDC has taken other steps to try to prevent introducing Ebola to the United States, including barring the entry of non-U.S. passport holders who have been in Congo, Uganda, or South Sudan in the past 21 days.

The CDC on May 22 expanded that entry ban to green card holders who have recently been in those countries.

The new policy, in place for 30 days, will give acting CDC Director Dr. Jay Bhattacharya time to “make an informed determination” about necessary travel restrictions going forward, according to the public health agency.

Tyler Durden Tue, 05/26/2026 - 07:45

Ferrari Shares Plunge After Analyst Slams New EV As "Mix Between Honda And Tesla"

Ferrari Shares Plunge After Analyst Slams New EV As "Mix Between Honda And Tesla"

Ferrari shares fell in Milan on Tuesday after the Italian supercar maker unveiled its first EV sports car, disappointing Wall Street analysts who criticized the design, with one calling it a "mix between a Honda Accord EV and Tesla."

The four-door, five-seat Ferrari Luce, priced at a staggering 550,000 euros, marks the supercar maker's first fully electric vehicle and serves as its biggest test yet: can Ferrari's nearly eight-decade brand equity survive the transition away from combustion?

AIR Capital analyst Pierre-Olivier Essig said the Luce looks like a "mix between a Honda Accord EV and a Tesla."

He added, "We are lost in translation with Ferrari's new strategy."

The Luce is equipped with 1,000 horsepower, accelerates from 0-60 mph in 2.5 seconds, and has a top speed above 192 mph. Even with top-tier performance, the car's design has been instantly rejected by people online.

Analysts at Oddo BHF noted that initial reactions to the exterior design have been largely negative among core Ferrari enthusiasts, reflecting concerns about a deviation from the brand's heritage.

They noted that while it is a bold and strategic move, it will likely have only a modest impact on sales and may lead to margin dilution, given high development costs and weaker residual values in EVs.

Oxcap analyst Stuart Pearson told Bloomberg that “"he Luce is likely a challenging aesthetic for many to digest, ourselves included, but it may provide the answer to Ferrari's China question."

The disappointment spilled over into the equity market, with Ferrari shares in Milan trading down about 6%.

On the year, the stock is down around 9% and about 40% off its high established in early 2025. Shares are currently trading around 2023 levels.

One notable takeaway from Goldman analyst Christian Frenes earlier this month was a report explaining Ferrari hybrids are depreciating far faster than their petrol-powered counterparts, suggesting buyers still prefer V-8 and V-12 combustion engines.

On top of Ferrari's shift into EVs, at a time when Lamborghini and Porsche have slowed EV plans as demand for high-end EVs remains lackluster, the car company recently reported wartime disruption to deliveries earlier this month.

At Capital Markets Day in October 2025, Ferrari set an official 2030 net revenue target of 9 billion euros, or about 800 million below expectations. Wall Street analysts were expecting 10 billion euros, adding to concerns about the company's long-term growth outlook and its strategy as it now enters EVs.

Tyler Durden Tue, 05/26/2026 - 07:20

How The Deep State Weaponizes AI To Control The Narrative

How The Deep State Weaponizes AI To Control The Narrative

The Deep State just upgraded from clunky human fact-checkers to AI that scales narrative control at lightspeed.

As Tony Seruga wrote on X:

No more paper trails, subpoenas, or exposed biases - just seamless manipulation.

Automated Shaping at Scale

AI floods zones with thousands of subtly varied "organic" rebuttals in seconds.

Pre-bunks emerging stories before they trend.

Detects your writing style, reasoning patterns, and source chains to dynamically throttle—no crude bans needed.

Infrastructure Already Live

CISA’s old “election security” coordination with platforms?

Content-agnostic and ready for new “harm” definitions.

Palantir, CrowdStrike & intel partners embed AI trained on classified data into commercial tools.

WEF’s “whole-of-society” push demands exactly this AI governance.

The Upgrade

Old fact-checkers left audit trails (funding, revolving doors).

AI is a black box: “The algorithm decided.”

Trained on curated data that associates inconvenient truths with “low quality.”

Plausible deniability baked in.

Endgame?

Not winning debates—making certain ideas unthinkable.

Never seen, never debated.

Just endless “helpful” corrections from voices that feel trustworthy.

Antidote: Think independently. Support alternative platforms. Never outsource your mind to machines or badges. Question everything.

The machine doesn’t wear a “FALSE” stamp—it whispers consensus until you believe it.

What’s your move?

Ignore at your own peril!

Tyler Durden Tue, 05/26/2026 - 06:55

European Gas Storage Can't Survive 3 More Months Of Hormuz

European Gas Storage Can't Survive 3 More Months Of Hormuz

Authored by Alex Kimani via OilPrice.com,

  • Europe risks a major gas storage shortfall if disruptions through the Strait of Hormuz continue for another 1–3 months, with inventories still far below normal seasonal levels.

  • LNG supply disruptions, strong Asian demand, and distorted gas pricing have made refilling storage unusually difficult and expensive across the EU.

  • Equinor warns prolonged disruptions could push Dutch TTF gas prices toward €90/MWh, forcing industrial demand destruction and fuel switching across Europe.

Europe could face a critical shortfall in natural gas stocks if shipping disruptions through the Strait of Hormuz persist for another 1-3 months, senior executives at Norwegian energy giant, Equinor ASA (NYSE:EQNR), have warned. Europe entered the current summer refill season with severely depleted gas reserves, with gas stores only 28% full following a prolonged winter. Europe’s storage levels are currently at 35-37%, significantly below the 50% seasonal norm, increasing the risk that the continent will miss its usual 90% target at the beginning of the next winter heating season. The European Union requires member states to maintain robust storage fill levels, typically targeting an 80% to 90% capacity by early winter. A combination of factors has made filling Europe's largest storage hubs a daunting task heading into the latter half of the year.

First off, heavy withdrawals during winter, driven by peak household heating, coupled with a spike in industrial power demand, depressed natural gas storage levels in Northwest Europe to below 30%, roughly double the EU's overall storage deficit. Gas levels in the Netherlands, Germany, and France fell to critically low levels before spring even began: Dutch reserves plunged to just 5.8% by the end of winter, marking the lowest level in a decade; storage levels in Germany dipped to ~20% while those in France hovered around 27% by the time spring kicked in.

Second, distorted pricing and inverted seasonal price curves have contributed to Europe’s gas crisis, with an unusual market structure wherein summer spot prices are higher than winter contracts stalling necessary storage replenishment. Dutch TTF seasonal spreads have remained in negative territory to the tune of ~€ 1.3/MWh, with the unusual backwardation disrupting the traditional dynamics of injecting gas during the cheaper summer months and withdrawing it during the colder, high-demand winter season.  Europe has also been facing an LNG squeeze, with competing global energy demands and disruptions to major LNG facilities due to the Middle East conflict making replenishing stocks highly costly. Delays and infrastructure damage at key facilities particularly in Qatar combined with a phase-out of Russian LNG have intensified global competition for spot cargoes, particularly against high demand in Asia. The inverted curve has also been partially driven by expectations of an influx of new global LNG capacity later in the year, coupled with near-term supply concerns.

EU member countries have responded to the distorted pricing mechanism using various approaches. In Italy, regulators such as ARERA and transmission system operators like Snam have introduced financial compensation schemes that allow traders to bid in auctions where the market manager pays the difference between the summer and winter gas prices at the Virtual Trading Point (PSV) to ensure storage targets are met. The situation is different in Germany, with Europe’s largest economy having historically avoided direct state subsidies to force injections, instead relying on legal mandates and market-balancing tools. Germany's Bundesnetzagentur enforces strict statutory filling targets for natural gas storage to guarantee winter supply security. Shippers and network users are legally obligated to meet specific inventory levels, and compliance is driven by market mechanisms, capacity auctions, and strategic instruments managed by Trading Hub Europe GmbH (THE). To cover costs associated with purchasing, injecting, and managing strategic gas reserves, THE utilizes a regulatory storage neutrality charge. This levy, historically applied to exit flows and network points, helps recover the costs of state-mandated storage measures.

Despite the difference in domestic incentives, both nations are subject to EU-wide regulations, requiring minimum storage levels historically targeting 80-90% of maximum capacity ahead of the winter heating season. While Italy has leaned into financial support, Germany relies on regulatory mandates, with the goal of passing storage-filling obligations onto active wholesale market participants.

Equinor has warned that whereas a quick resolution could allow for Europe to attain a manageable 75% storage level by the end of the injection season, a 1–3 month blockage would make the situation highly critical, potentially driving TTF prices toward €90/MWh. A spike in gas prices is expected to drive market corrections, including a projected 10 billion cubic meter reduction in gas-to-power demand and increased industrial fuel switching.

That said, Europe’s current gas crisis is nowhere near as dire as the situation it faced when Russia invaded Ukraine a couple of years ago. Indeed, Germany is going ahead with the privatization process for Uniper following the company's multi-billion-euro rescue during the 2022 energy crisis. Under the European Commission state aid rules that approved Berlin's 2022 bailout, Germany is legally required to reduce its shareholding to a maximum of 25% plus one share by the end of 2028. Uniper's finances have improved dramatically following a massive €40 billion net loss in 2022 triggered by the cutoff of Russian Gazprom gas. The utility won major arbitration damages, and has already begun repaying government aid. This financial health makes it highly attractive to private markets. Headquartered in Düsseldorf, Uniper is one of Germany’s largest gas importers and a key player in Europe's gas trading and storage networks.

Tyler Durden Tue, 05/26/2026 - 06:30

Japan's Auto Giants Are Losing The EV Race To China

Japan's Auto Giants Are Losing The EV Race To China

Japan’s car industry is being forced into a major reset as Chinese automakers rapidly outpace traditional rivals in electric vehicles, software, and manufacturing speed, according to Nikkei.

The shift is especially visible at Honda Motor. In 2021, CEO Toshihiro Mibe pledged that EVs and fuel-cell vehicles would account for all new Honda sales by 2040. Last week, however, he admitted the plan was “not realistic under the current circumstances,” formally backing away from the target.

Nikkei writes that Honda’s retreat marks a sharp reversal. The company had committed trillions of yen to EVs, battery production, and a Canadian supply chain while also betting heavily on Afeela, its software-focused electric vehicle partnership with Sony Group. The project was meant to prove Japanese automakers could compete in the era of connected, software-defined cars.

Instead, Honda is cutting EV spending, delaying major factory projects, and pivoting back toward hybrids after posting its first full-year net loss since going public in 1957.

The company’s problems mirror a wider struggle across Japan’s auto sector. Nissan Motor has recorded heavy losses for two straight years, while even Toyota Motor expects another decline in annual profits.

Industry analysts say the biggest pressure is no longer coming from U.S. or European rivals, but from China. Companies such as BYD and Geely have rapidly expanded worldwide, using low-cost production, aggressive pricing, AI-assisted development, and advanced battery technology to gain market share.

Chinese firms are also moving far faster than Japanese competitors. New vehicle programs in Japan typically take four to five years to reach market, while leading Chinese brands can launch models in under two years. Their rapid rollout of new EV platforms, self-driving features, and ultra-fast charging systems has transformed China into the center of automotive innovation.

“There is no doubt that Chinese automakers are the root cause of Japanese manufacturers’ steadily declining market share,” said Masatoshi Nishimoto of S&P Global Mobility.

At the Beijing auto show this year, Chinese companies highlighted technologies that underscored the gap. BYD demonstrated a battery capable of charging from 10% to 97% in roughly nine minutes, while rivals showcased advanced autonomous-driving systems and fully digital steering and braking controls.

Japanese automakers still maintain advantages in reliability, resale value, and after-sales service, particularly in developing markets where used Japanese vehicles dominate roads and repair networks are already established. Analysts say those strengths may become increasingly important as companies focus on the Global South for growth.

That strategy is already reshaping corporate alliances. Toyota is deepening partnerships with Suzuki, Mazda, Subaru, and NTT, while Nissan and Honda continue discussing cooperation even after merger talks collapsed. Both companies are also working more closely with Chinese suppliers and technology firms to reduce costs and accelerate development.

Some executives see collaboration as essential to survival. Toyota chairman Koji Sato warned recently that “there is complete agreement on the sense of crisis” facing Japan’s auto industry.

Still, some analysts believe the scale of China’s rise may be too large to counter. As one observer put it, the challenge is no longer Toyota competing with a single rival, but with hundreds of Chinese EV brands moving simultaneously across global markets.

Tyler Durden Tue, 05/26/2026 - 05:45

Nearly 1.2 Billion People Live With Mental Disorders Globally: Study

Nearly 1.2 Billion People Live With Mental Disorders Globally: Study

Authored by Naveen Athrappully via The Epoch Times,

There were an estimated 1.17 billion people suffering from mental disorders worldwide in 2023, up by 95.5 percent from 1990, according to a May 23 peer-reviewed study published in The Lancet journal.

The study assessed the prevalence of 12 types of mental disorders across 204 nations and territories between 1990 and 2023. Types of disorders assessed in the study included bipolar disorder, schizophrenia, attention-deficit hyperactivity disorder, major depressive disorder, and anxiety disorders. All mental disorders saw case numbers rise during the study period.

Researchers estimated there were 171 million disability-adjusted life-years (DALYs) due to mental disorders in 2023. DALY is used to calculate how medical conditions and diseases affect the length and quality of life of a population. One DALY equals one year of healthy life lost due to sickness, disabilities, and death. As such, the study estimates that 171 million years of healthy life were lost in 2023 alone due to mental disorders.

Mental disorders made up 6.1 percent of all-cause DALYs in 2023 globally due to all sickness, disabilities, and deaths, making it the fifth leading cause of DALYs, up from 12th spot in 1990. Leading causes of mental disorder DALYs were anxiety disorders, major depressive disorder, and schizophrenia.

“A significant health burden was imposed by mental disorders in all countries and territories in 2023, irrespective of the health resources available. In some instances, this burden has increased over time and is unevenly distributed across populations,” the study said.

“Stronger surveillance systems, particularly in low-income and middle-income countries, are required. Additionally, we need more coordinated and inclusive policies to reduce the burden through early treatment and prevention, tailored to sex and age differences across locations.”

In a May 21 statement, the Institute for Health Metrics and Evaluation (IHME), whose researchers led the study, said that high-income regions such as Western Europe and Australasia recorded some of the highest mental disorder burden rates globally, which included countries such as Portugal, Australia, and the Netherlands. Large increases in burden rates were also identified in parts of South Asia and Western sub-Saharan Africa.

Women were more affected by mental disorders, with 620 million females estimated to be living with such a condition, compared to 552 million men.

In terms of age, mental disorders were found to disproportionately affect individuals between 15 and 19 years of age, which is a “critical developmental period that can shape trajectories for education, employment, and relationships,” said Dr. Alize Ferrari, one of the authors of the study who is an affiliate assistant professor at IHME.

The study was funded by the Gates Foundation, the University of Queensland in Australia, and Queensland Health.

US Mental Health

According to a May 19 report from the Centers for Disease Control and Prevention, mental health is closely linked to physical health.

For instance, having depression raises the risk for various types of physical conditions such as heart disease, stroke, and diabetes.

Risk factors of mental health include lack of access to housing or education, experiencing institutional or interpersonal discrimination, social isolation, lack of economic and employment opportunities, use of drugs or alcohol, adverse childhood experiences, and ongoing or chronic medical conditions such as cancer and traumatic brain injury.

In the United States, 23 percent of adults are estimated to live with a mental health condition. Almost 6 percent of adults have a serious mental health condition that “significantly interferes” with their daily activities, the CDC said.

Among adolescents aged 12 to 17, about 20 percent are estimated to have a diagnosed mental or behavioral health condition.

A 2025 study found that committing acts of kindness is beneficial for mental health.

Volunteers insert flags at the National Memorial Cemetery of Arizona in Phoenix on May 23, 2026. Allan Stein/The Epoch Times

In the study, Trinity Western University psychology professor Yeeun Archer Lee randomly assigned more than 200 participants to either take daily wellness breaks involving self-care for two weeks or perform acts of kindness every day during this period.

Lee said the study found acts of kindness to be “more effective in reducing loneliness and increasing social contact,” which is especially true for people who are highly lonely or socially anxious.

Tyler Durden Tue, 05/26/2026 - 05:00

Brussels Eyes Wealth Taxes As Europe’s Fiscal Crisis Spirals

Brussels Eyes Wealth Taxes As Europe’s Fiscal Crisis Spirals

Submitted by Thomas Kolbe

A fatal fiscal dynamic has become entrenched across the European Union. In nearly every member state, public spending is accelerating at all levels — from municipalities and social insurance systems all the way up to the European Commission — while the private economy at best stagnates and its industrial core sectors visibly erode.

This dangerous economic imbalance, in which a shrinking private sector is forced to finance a continuously expanding state apparatus, is already producing fiscal consequences visible in the bond markets. Interest rates have been rising steadily for years, making debt servicing increasingly expensive, while the financing needs of public budgets continue to grow under the ruling ideology of an all-encompassing state. This widening fiscal gap is fueling political appetites for higher taxation — a destructive race among parties to squeeze taxpayers at every level has begun.

And naturally, when it comes to fleecing European taxpayers, the European Commission cannot be absent. Brussels is currently preparing its seven-year budget framework, set to exceed €2 trillion beginning in 2028.

Apollo News recently reported that the European Parliament is even demanding a further 10 percent increase in this budget ceiling. Excess, wastefulness, and a complete detachment from economic reality are driving the EU’s relentless search for new independent tax revenues.

To this end, Commission President Ursula von der Leyen commissioned the Center for Social and Economic Research (CASE) last year to produce a study examining the potential of wealth taxation in the EU — another brick laid in the rapidly expanding tax debate.

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Bluntly put, this reflects the incestuous culture of Brussels, where academic satellites traditionally align themselves with the ideological winds of their political sponsors in order to secure taxpayer-funded grants.

The study focused primarily on the collection methods and revenue shares associated with wealth taxes, capital gains taxation, and the so-called exit tax. In other words, Europe’s tax policy is now moving toward the heart of private property itself. Brussels is unpacking the toolkit of preparatory state propaganda. Terms such as “justice gap,” “redistribution,” and “social justice” appear throughout the report, alongside the usual resentment-driven rhetorical formulas designed for one purpose only: preparing the public for a future in which the fiscal arms of European governments reach ever deeper into family wealth and long-term financial planning.

The central thesis of the CASE study is that private wealth in Europe has grown disproportionately and become increasingly concentrated in the hands of a small number of households. Right from the outset, however, the state itself — with its swelling bureaucracy and expensive interventionism in climate policy, the Ukraine conflict, and welfare systems — is carefully removed from scrutiny.

Not a single critical word appears in the study about the darker side of taxing citizens’ accumulated assets. Taxation today is carried out in the spirit of subservience: the taxpayer no longer possesses any meaningful voice. Instead, a debate framed around “fairness” is intended to soften the final pockets of resistance. In the end, everything is reduced to fiscal design and public relations.

One particularly revealing sign of the EU’s fiscal direction can be found in the debate surrounding the so-called exit tax. Combined with the introduction of a digital euro and the possible integration of Switzerland into the EU’s fiscal regime, escape routes for capital would effectively be sealed off. Wealthy citizens would likely flee beforehand, pulling their capital out of the EU while they still can.

What is remarkable is that politicians, institutes, and media organizations appear incapable of drawing conclusions from real-world experience. Norway’s introduction of a wealth tax triggered an exodus of the super-rich, ultimately leading to a noticeable decline in tax revenues. Understandably, Brussels now seems eager to close the gates — and has even helped ignite a wealth-tax debate in Switzerland, though this effort will likely fail. Its climate-policy framing alone makes it highly suspect to Swiss voters.

Switzerland does, of course, already levy wealth taxes at the cantonal level. But the current debate within the EU reaches much further into the direct taxation of citizens’ existing wealth than anything Switzerland has implemented thus far.

Europe’s treatment of its productive classes reveals the deeply statist spirit that now dominates the political and media establishment. The fact that the top 10 percent of income earners in Germany already contribute roughly 55 percent of all income tax revenues is no longer politically relevant. Desperate states will pull every lever available to fill the fiscal holes left behind by the green transformation.

The CASE study also aligns strikingly — both in timing and substance — with the current German debate over abolishing income splitting for married couples, increasing inheritance taxes on business assets, and reintroducing the wealth tax.

Germany already imposes a form of exit tax under certain circumstances when companies relocate abroad. What may be missing is only the Dutch approach: the comprehensive fictitious taxation of unrealized capital gains. The Netherlands is serving as the testing ground. Such taxation would likely become the next maneuver of a bloated state apparatus that has lost control of its spending.

What we are witnessing is a political class that continues to believe in building an eco-socialist surveillance state despite economic reality, visible deindustrialization, and social decay. And like every socialist project before it, environmental statism will eventually damage its host economy so severely that the laws of economics, logic, and resource scarcity will ultimately bring it down.

* * *

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

Tyler Durden Tue, 05/26/2026 - 03:30

Finland Flourishes As Freedom Flounders In The 'Land Of The Free'

Finland Flourishes As Freedom Flounders In The 'Land Of The Free'

Global freedom declined for the 20th consecutive year in 2025, according to Freedom House. More than 50 countries saw political rights and civil liberties deteriorate, including the United States.

This graphic, via Visual Capitalist's Gabriel Cohen, ranks the world’s most and least free countries using Freedom House’s 2026 Freedom in the World report, which evaluates political rights and civil liberties across 195 countries and territories.

Finland topped the rankings with a perfect score of 100, followed by New Zealand, Norway, and Sweden at 99. Meanwhile, South Sudan scored 0, the lowest possible rating, highlighting the widening divide between the world’s strongest democracies and most repressive regimes.

Why Europe Dominates the Freedom Rankings

Europe accounts for most of the world’s highest-scoring countries, led by the Nordics and Western Europe. Strong electoral systems, independent courts, press freedom, and protections for civil liberties helped countries like Finland, Sweden, Germany, and the Netherlands rank near the top globally.

There are two European outliers with low scores out of 100: Belarus (7) and Russia (12). Both are run by repressive autocratic regimes that have been in power for over two decades. The two Eastern European countries feature neither press independence nor free and fair elections, and rank among the least free countries worldwide.

The below data table shows the countries with the highest freedom scores in 2025:

Outside of Europe, the world’s freest countries include New Zealand (99), Canada and Uruguay (97), and Japan (96).

Within each of these countries, robust civil society and independent journalism help keep elected officials accountable, while political transitions are handled without fear of violence.

The Decline of the U.S.

Alongside Bulgaria and Italy, the United States had one of the steepest declines in its score in 2025 among countries classified as Free. The world’s leading superpower fell to a score of 81, its lowest on record, tying South Africa and falling behind Panama (82).

Over the past two decades, the U.S. score has slipped by 12 points, driven by rising polarization and political violence. The 2025 decline was caused in part by government efforts to crack down on nonviolent expression by citizens and noncitizens alike.

The weakening of anticorruption safeguards and enforcement practices by the new U.S. presidential administration was also cited as contributing to the lower score compared to previous years.

The World’s Least Free Countries

While the U.S. remains firmly classified as “Free,” the gap between democratic and authoritarian countries remains stark. The lowest-ranked countries were concentrated across Africa, Asia, and the Middle East, where elections are restricted, opposition movements are suppressed, and civil liberties remain severely limited.

South Sudan, one of the world’s youngest countries, obtained the worst possible score of 0, followed by a tie between Sudan and Turkmenistan (both 1). In each of these countries, minority rights are under assault and political freedoms are nonexistent.

Larger countries across Africa, Asia, and the Middle East also rank poorly. Vietnam scored 20, while Egypt, Ethiopia, and the United Arab Emirates tied at 18.

Three regimes in the Americas also appear within this bottom tier of Not Free countries: Cuba (9), Nicaragua (14), and Venezuela (13).

Curious to see how other countries have changed their fortunes since last year? Check out The State of Freedom Around the World on Voronoi.

Tyler Durden Tue, 05/26/2026 - 02:45

The Digital Euro As Europe's Backdoor Capital Control System

The Digital Euro As Europe's Backdoor Capital Control System

Submitted by Thomas Kolbe

The digital euro ranks among the most ambitious projects within the political architecture of the European Union. As the Eurosystem and the EU increasingly merge into identical and integrated political spaces, it can no longer be denied that this CBDC project is primarily a geopolitical power play by Brussels. Yet the euro-CBDC — shorthand for “central bank digital currency” — remains stuck in a loop. Originally envisioned years ago as already being in the project phase, the first digital wallets are now not expected before the end of 2029. Bundesbank President Nagel pointed this out in his interview with Handelsblatt.

During the interview, Nagel emerged as an articulate advocate of a euro-CBDC, despite the fact that its introduction would inevitably hand enormous power to the European Central Bank as issuer and administrator of digital wallets. This would coincide with the dismantling of core business areas currently controlled by commercial banks. Nagel downplayed the danger of large-scale capital flight from accounts held at savings banks, Deutsche Bank, and others, arguing that planned digital wallets would be capped at €3,000. With this argument, Nagel attempts to minimize the undeniable risk that the technology could later be expanded far beyond its initial limits.

Unfortunately, the interview fails to clarify the substantive difference between the CBDC envisioned for the eurozone and the already existing stablecoins, most of which are denominated in U.S. dollars. There is a fundamental distinction between programmable digital money issued by a centralized state authority and digital currency services provided by multiple competing private-sector issuers.

A full-scale battle between systems is increasingly taking shape in the realm of digital money. On one side stand European institutions pushing for systematic centralization of power. On the other side of the Atlantic lies a model that, compared with the EU approach, resembles a return to Wild West capitalism: more deregulation, a shrinking state apparatus, and in monetary policy, a gradual return to private-sector money creation through privately issued stablecoins.

Fiat-linked digital currencies, so-called stablecoins, are currently one of the hottest trends in American finance. The largest private issuer of a dollar stablecoin is Tether, whose digital dollar has now reached a market volume of roughly $190 billion. These privately issued digital dollars represent a major innovation within blockchain technology. In particular, they enable real-time transfers, operate without banking holidays, and provide access outside the traditional SWIFT system for anyone with an internet connection.

Users essentially need nothing more than a smartphone and an installed wallet app — no traditional bank account required. Another advantage lies in potentially lower fees and, in some cases, higher yields, since providers avoid the bloated administrative structures of traditional banks. Stablecoins undoubtedly represent a major increase in individual sovereignty - at least until issuers, possibly under government pressure, decide to freeze access to users’ holdings.

The fact that the eurozone has so far neither agreed on a digital CBDC control standard nor trapped citizens inside such a digital financial prison stems from several factors. One is technological. The threat posed by quantum computing dramatically intensifies the risks involved. A centralized digital financial system such as the euro-CBDC would face massive hacking attempts and manipulation from the moment of its launch. This is the classic weakness of centralized systems: they provide attackers with one clearly defined point of attack. Moreover, the European Union and the Eurosystem together form an over-bureaucratized and fully centralized power structure that inevitably lags behind current technological standards.

For precisely this reason, decentralized financial ecosystems such as the Bitcoin network are technologically superior. Bitcoin is secured by a decentralized network of independent miners and node operators. Every participant defends the structure out of direct self-interest. With well over 100 million Bitcoin holders worldwide and tens of thousands of miners, an almost impenetrable protective wall emerges. Contrary to Nagel’s remarks in the interview, the commercial banking sector is obviously also resisting the centralization of the financial system in the hands of the ECB. The reason is simple: a full rollout of the digital euro would make the traditional banking business model — accounts, savings products, and transfer services — largely obsolete.

But the real reason there has so far been relative calm on the CBDC front inside the Eurosystem becomes obvious once one observes the speed at which global capital flees crisis zones. The introduction of a CBDC would signal that the ECB intends to build in a mechanism for capital controls, possibly in anticipation of a full-scale financial or sovereign debt crisis in the euro area. A dramatic surge in interest rates triggered by a selloff in European bonds would once again force the ECB to intervene as lender of last resort, on a scale potentially far greater than anything seen during the financial and sovereign debt crises of the past decade and a half. Such intervention would inevitably raise fundamental questions about the long-term stability of the euro itself.

That the eurozone will eventually face another debt crisis is hardly in doubt. The only uncertainty is timing — namely, when bond markets, confronted with Europe’s relentless debt binge, in which even Germany is now enthusiastically participating, will finally give the thumbs down.

* * *

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

Tyler Durden Tue, 05/26/2026 - 02:00

Globalism Seeks To Kill The Nation-State

Globalism Seeks To Kill The Nation-State

Authored by J.B. Shurk via American Thinker,

International government threatens the whole planet.

People are beginning to understand that those who rule in their name have long been working to eliminate the nation-state.

The United Nations is not neutral ground for national governments to discuss their differences; it is a governmental construct meant to replace national governments.  The World Health Organization is not an international body meant to coordinate complex responses to global health emergencies; it is an institution vested with vast power and authority to track and regulate every human on the planet.  The Bank for International Settlements, the World Bank Group, and the International Monetary Fund don’t exist to expand free trade, open markets, and assist developing nations; they exist to centralize control over all economic transactions in the world.

The onslaught of “green new deal” laws in Canada, the United States, the United Kingdom, the European Union, Australia, and New Zealand have nothing to do with preserving the environment or “saving the planet”; they are part of a broader U.N. initiative to track every person’s so-called “carbon footprint” in order to monitor, tax, and regulate all human activity.  The U.N.’s “climate reparations” policy has nothing to do with “justice” or “science”; it exists to justify the redistribution of wealth from Western nations to non-Western nations under the guise of “international law.”

The message we have heard all our lives is loud and clear: Nations do bad things.  International organizations do good things.

The rhetorical war on “nationalism” didn’t begin because people who are proud of their nations magically became Nazis; people who are proud of their nations are called “Nazis” so that those who rule over us can demonize the nation-state.  If you go back through newspapers and scholarly essays before WWII, “nationalism” and “patriotism” are used interchangeably.  After WWII, there is an obvious linguistic break.  “Patriotism,” for the most part, survives as an acceptable civic virtue (How else can governments send men into battle if there are no patriots?).  “Nationalism,” however, becomes increasingly used through the decades as a derogatory term linked to fascism — as if the very organizing concept of a nation-state is inherently authoritarian and anti-democratic.

Thinking about this anti-nationalism campaign for more than a second reveals its silliness.  Why would a constitutional republic with representative democracy be “fascist” at the national level but “democratic” when organized internationally?  Why would the Executive leader of a nation such as Germany, France, or the United States be more “authoritarian” than the secretary-general of the U.N. or the president of the European Commission?  Why would an international governing body be considered more “democratic” than a town, region, or nation of people governing themselves?  Why should the president of the European Commission, Ursula von der Leyen, be considered Europe’s “representative leader” when the European people never voted for her to “represent” them?

The U.N. has 193 member state ambassadors representing roughly 8.3 billion people.  Why should such a minuscule parliamentary assembly be considered “democratic” or “representative” at all?  At best, it uses the veneer of “democracy” to justify imposing its authoritarian will upon all of humanity.  Whether one dictator or 193 dictators working in concert — when humanity is forced to obey the edicts of rulers, it doesn’t matter if those edicts come from a national or international body.

Natural rights and freedoms do not become more natural because 193 people in New York City say so.  God-given liberties exist despite the existence of government, not because of government.  The more people over whom a government claims jurisdiction, the less likely that any one person’s natural rights will be respected and protected.  When a citizen cannot look his “representative” in the face, his “representative” is much less concerned about infringing that citizen’s natural liberties.

International governments are no less likely to become totalitarian than national governments.  Just as Hitler’s national socialism and Mussolini’s fascism did last century, international tyranny prefers to disguise itself as something peaceful, benevolent, and for the common good.  Had Hitler successfully conquered Europe, perhaps the German Empire would have been called the European Union.  Had Hitler conquered the world, perhaps the U.N.’s headquarters would be in Berlin.  National totalitarianism becomes international totalitarianism just as easily as national mask and vaccine mandates transform into “vaccine passports” and World Health Organization mandates.

The same people who hyperventilate about President Trump’s supposed “authoritarianism” roundly applaud the authoritarianism of global institutions such as the World Health Organization.  In fact, when the president withdrew the United States from WHO on his first day back in office last year due to the international body’s mishandling of the COVID pandemic and efforts to cover up the pandemic’s origin in Wuhan, China, critics in the press accused Trump of being “scientifically reckless” and called “global cooperation” a “biological necessity.”

That’s another part of internationalism’s linguistic magic trick: The same global corporate news machine that has spent the last eighty-plus years conditioning people to understand the word “nationalism” as something evil, militant, and barbaric has simultaneously conditioned the world to see anything “international” as inherently good, peaceful, and progressive.  The “national / international” dichotomy didn’t happen by accident; it’s been shoved down our throats all our lives.  But once again, if a rational person takes a moment to consider the semantic manipulation, it is quite absurd.

If the International Monetary Fund, headquartered in Washington, D.C., were more accurately renamed the “American Monetary Fund,” would the financial institution become more suspect?  If so, then how should we view the word “international” as anything other than a verbal ruse meant to project a false message that the IMF acts on behalf of all people on the planet?  American taxpayers have principally funded the World Health Organization since its formation in 1948.  If it had been called the American Health Organization, would the press have been as upset when “authoritarian” Trump decided to stop funding it?  If not, does this not suggest that words such as “world” and “global” distort the identity and purpose of these intrusive organizations?

“Internationalism” is a Trojan Horse or at least the camel’s nose under the tent for Big Government authoritarians who wish to impose their will on the whole planet.

When “international” agents or soldiers come knocking, their mission sounds downright “humanitarian,” doesn’t it?  The United Nations has a whole Department of Peace Operations.  That department sends out military and law enforcement personnel known as “peacekeepers.”  And for decades the “peacekeepers” from the Department of Peace Operations have raped women and girls all over the world.  The “internationals” have been abusing the “nationals,” and the international United Nations and the multinational corporate news organizations have spent decades covering up all of the “internationals’” prolific raping.  International organizations dedicated to “peace” can’t be seen doing things that only “fascist” nationals do.

Big lies expose internationalism’s true intent: Internationalists are building a global empire.  This empire is authoritarian (because it demands global compliance at the expense of personal freedom) and totalitarian (because it requires complete subservience to a centralized and dictatorial global government).  There is nothing “democratic” or “representative” about this international system of governance.  It has no interest in protecting an individual’s rights and freedoms.  It has no interest in respecting a nation’s sovereignty.  It will permit both individuals and nations to be raped in the name of “global peace.”

Therefore, it makes perfect sense why the United Nations encourages mass illegal immigration into the United States and Europe.  When you are in the business of destroying nations, you do not care if murderers and rapists destroy local families.  You do not care if Islamic terrorists burn down Christian churches.  You do not care if the “newcomers” to Europe and America have pledged to conquer the West.

For globalism to win, it must first kill the nation-state.

Tyler Durden Mon, 05/25/2026 - 23:25

Healthcare Workers Dominate America's Highest-Paid Jobs

Healthcare Workers Dominate America's Highest-Paid Jobs

Want to earn more than $300,000 a year in America? The clearest path is still a highly specialized medical career.

This ranking of America’s highest-paying occupations uses Bureau of Labor Statistics (BLS) data to compare mean annual wages and total U.S. employment across the country’s top-paid roles.

As Visual Capitalist's Dorothy Neufeld details below, the results show how concentrated high pay is in healthcare. They also reveal another important pattern: many of America’s best-paid jobs are held by relatively small workforces, making them some of the rarest careers in the economy.

America’s Highest-Paying Jobs

The rankings below show the 30 highest-paying occupations in the U.S. based on mean annual wages, alongside total nationwide employment levels.

Why Doctors Dominate America’s Highest-Paying Jobs

Healthcare’s dominance reflects a powerful mix of high barriers to entry, limited specialist supply, and steady demand for complex medical care.

Most of the highest-paying medical specialties require more than a decade of education and residency training, limiting the pipeline of qualified professionals. At the same time, America’s aging population is increasing demand for specialists in cardiology, radiology, oncology, and surgery.

As a result, highly specialized physicians command some of the largest salaries in the economy. Adding to this, the U.S. is projected to face a shortage of more than 141,000 physicians by 2038.

America’s Highest-Paying Jobs Are Also Among Its Rarest

Many of America’s top-paying professions employ surprisingly small numbers of workers nationwide.

For example, there are only about 1,000 pediatric surgeons across the U.S., despite the profession ranking first overall in pay. Several other elite medical specialties, including prosthodontists (760) and oral surgeons (5,000), also have relatively small workforces.

This scarcity helps explain why wages remain exceptionally high. Limited supply continues to collide with growing healthcare demand and an aging population with rising rates of chronic illness.

The Highest-Paying Jobs Outside Healthcare

Outside of healthcare, only a handful of roles break into the upper tier of U.S. pay, led by aviation and executive management.

Airline pilots, copilots, and flight engineers ($280.6K) rank among the country’s highest-paid workers as aviation faces persistent pilot shortages. Meanwhile, chief executives ($262.9K), financial managers ($180.5K), and architectural and engineering managers ($175.7K) command high salaries due to their leadership responsibilities and oversight of complex operations.

Will America’s Highest-Paying Jobs Change?

Despite rapid advances in AI and automation, many of America’s highest-paying jobs remain difficult to replace.

Specialized surgeons, anesthesiologists, and pilots operate in highly regulated environments that require years of hands-on training and real-time decision-making. These barriers continue to shield many elite professions from automation pressures reshaping other parts of the workforce.

At the same time, healthcare spending is forecast to grow faster than the broader economy through 2033, helping sustain strong demand and high salaries for specialized physicians.

To learn more about this topic, check out this graphic on the best places to work in America in 2026.

Tyler Durden Mon, 05/25/2026 - 22:50

Musk: SpaceX Is Actively Seeking More AI Compute Customers, After Anthropic Deal

Musk: SpaceX Is Actively Seeking More AI Compute Customers, After Anthropic Deal

By Sebatsian Moss of Data Center Dynamics

SpaceX's xAI subsidiary is looking to score more data center compute lease deals, after it sold all of the capacity of Colossus I to Anthropic.

That deal will see Grok's competitor pay $1.25 billion a month over the next three years for the 300MW facility. The deal can be terminated by either party, with 90 days' notice.

"As the recently expanded partnership with Anthropic demonstrates, SpaceX is offering AI compute as a service at significant scale," CEO Elon Musk said.

"We are in discussions with other companies to do the same. "Over time, especially with orbital data centers, we expect to serve AI at extremely high scale."

In April, AI code editing startup Cursor announced that it would also be using space at xAI data centers - although SpaceX is set to acquire the business within 30 days of its IPO.

SpaceX is expected to go public on June 12, with the company looking to raise upwards of $75 billion. IPO documents reveal that xAI spent $12.7bn on AI infrastructure in 2025, and has already invested $7.7bn in the first quarter of 2026.

Alongside the first Colossus data center, xAI is developing Colossus 2. It acquired the land last March, and the data center came online in January. Despite Musk claiming it offered 1GW of capacity at launch, satellite imagery taken in January reportedly showed it had cooling equipment installed capable of managing 350MW.

The IPO document makes multiple mentions of the 1GW of data center capacity at SpaceX’s disposal, but describes it as “nameplate compute draw.” It explains this is calculated by taking “the number of GPUs installed in our data centers at the end of the period multiplied by their respective all-in power draw.

According to a chart in the IPO filing, the company’s nameplate compute draw was 1GW in March 2026, up from 300MW a year before. However, it also notes that this figure “reflects installed capacity and does not represent actual power consumption or utilization.” So while the GPUs are installed, they may not yet be powered up, suggesting the company’s actual useful compute power could be significantly less than 1GW.

How much capacity at the xAI data centers is actually reserved for Grok, the company's own generative AI effort, is unclear. The platform has seen dwindling usage, while increasing numbers of staff have left the company - including all non-Musk co-founders.

SpaceX, meanwhile, plans to launch up to one million space data center satellites in the years to come.

Tyler Durden Mon, 05/25/2026 - 22:15

First Andreessen, Now Goldman CEO Shuts Down AI Job-Apocalypse Doomerism Narrative

First Andreessen, Now Goldman CEO Shuts Down AI Job-Apocalypse Doomerism Narrative

Amid the flood of AI doomerism, from Pope Leo XIV's Monday warning that AI and the digital transformation of the economy could unleash "new forms of slavery" and mass job losses, to Bernie Sanders and unhinged socialists calling for a halt to data centers buildouts, a move that would conveniently cede compute power to communists in Beijing, a growing and emerging chorus of dystopian futurists is now trying to frame the AI boom as an existential labor-market crisis rather than the next productivity supercycle that arrives just in time as a demographic winter unfolds.

Adding to recent comments from Netscape co-founder and Andreessen Horowitz (a16z) co-founder Marc Andreessen, who argued that AI-related job-loss fears are merely hysteria and that AI is actually arriving at the moment the nation needs it most:

"We're going to have AI and robots precisely when we actually need them [with populations shrinking] to keep the economy from actually shrinking."

...none other than Goldman Sachs CEO and occasional weekend DJ in the Hamptons, David Solomon, penned a recent opinion piece in The New York Times asserting that the AI-related "job apocalypse and mass unemployment ahead" hysteria is "overblown."

"I'm the C.E.O. of Goldman Sachs. The A.I. Job Apocalypse Is Overblown," Solomon titled the NYTimes op-ed, likely aiming for maximum media exposure with such an eye-catching headline.

Solomon's framing of the headline appears to be a direct response to growing resistance not only to AI chatbots but also to data centers nationwide, a backlash wave we pointed out many months ago as alarm bells ring loudly from the tech bro community. As AI infrastructure becomes the backbone of the next economic cycle, the anti-data-center movement is quickly gaining steam and becoming a political weapon by the doomerism community.

Solomon argues that AI will not eliminate jobs at an apocalyptic scale. Instead, he says it will allow workers to become more productive, shift to higher-value tasks, and create new roles focused on managing, implementing, validating, and regulating AI systems.

However, Solomon does acknowledge that there will be labor market disruptions:

Absolutely. This transition, like other significant moments in our history, will entail new challenges, especially as A.I. separates labor from productivity in magnitudes we haven't seen before.

He pointed out that the U.S. economy has seen this story before: it has repeatedly absorbed technological shocks, from electrification to automobiles to computers, while overall employment and living standards continued to rise.

Solomon said AI will likely follow the same pattern as previous technological shifts, eliminating some jobs while expanding others, such as the explosion in construction jobs tied to the $700 billion in capex that hyperscalers are set to deploy this year alone.

Solomon cites his economists, who recently forecast that AI could automate 25% of current work hours over the next decade, with white-collar sectors such as banking, law, accounting, software, and customer service most exposed.

Solomon said that if AI destroys jobs at an unprecedented scale, there should be a "joint effort" between the corporate world and government to help workers and institutions adapt to the new labor market.

"The U.S. economy can and will adapt to major advances in technology," he emphasized.

Solomon's comments were similar to those made earlier this year by venture capital guru Andreessen, who argued that fears of an AI-driven jobs apocalypse are overstated.

In his view, automation and robots are entering the picture at exactly the moment economies need them to offset labor shortages and prevent stagnation.

Read:

Elon Musk has been among the loudest and most vocal voices warning about the demographic winter consuming not only the Western world but many other countries as well. He has framed his Optimus robot as "great for Japan" because it could help offset a shrinking workforce.

Tyler Durden Mon, 05/25/2026 - 21:40

Arab States Voice Outrage Over New 'Illegal' Embassy Opening In Jerusalem

Arab States Voice Outrage Over New 'Illegal' Embassy Opening In Jerusalem

Via The Cradle

Fifteen Arab and Islamic countries condemned on Sunday the decision of the breakaway region of Somaliland to open an embassy in occupied Jerusalem. The foreign ministers of Egypt, Saudi Arabia, Qatar, Jordan, Turkiye, Pakistan, Indonesia, Djibouti, Somalia, Palestine, Oman, Sudan, Yemen, Lebanon, and Mauritania denounced the move in a joint statement on Sunday.

The countries condemned "in the strongest terms the illegal and unacceptable step taken by the so-called 'Somaliland' region in opening a purported 'embassy' in occupied Jerusalem," according to the statement.

Newly opened embassy in Jerusalem, via X

The countries issued the statement one week after Israeli President Isaac Herzog welcomed Somaliland's first-ever ambassador to Israel, Dr. Mohamed Hagi, at the President's Residence in occupied Jerusalem. "This new and important partnership between our countries will lead to a future of cooperation in a variety of fields – for the benefit of both our peoples and the entire region," Herzog stated.

Seven countries have opened embassies in Jerusalem since the US, under President Donald Trump, recognized the city as Israel's capital in 2017.

The decision sparked widespread international condemnation, given that Israeli forces illegally occupied East Jerusalem during the Six-Day War in 1967, which Palestinians call the Nakba. Since then, Israel has colonized East Jerusalem in violation of international law by expelling indigenous Palestinian Muslims and Christians and facilitating the settlement of Jewish Israelis in their place.

The 15 countries rejected any unilateral measures to entrench "an illegal reality in occupied Jerusalem or conferring legitimacy on any entities or arrangements that contravene international law and relevant United Nations resolutions."

The statement reaffirmed the fact that "East Jerusalem has been occupied Palestinian territory since 1967" and said any measures seeking to alter its legal or historical status are "null and void."

The foreign ministers also expressed full support for the unity, sovereignty, and territorial integrity of Somalia, rejecting any unilateral actions that undermine Somali sovereignty.

In April, Somalia condemned Israel's appointment of an ambassador to the breakaway region of Somaliland, calling the move a "breach" of its sovereignty and international law. "This action represents a direct breach of Somalia's sovereignty, unity, and territorial integrity," the Somalian Foreign Ministry said, adding that it "undermines the established international consensus." 

Mogadishu added that the decision violates its territorial integrity and contradicts the UN Charter and African Union principles. The ministry stressed that Somaliland “remains an integral part” of Somalia, rejecting any attempt to grant it diplomatic recognition outside federal authority.

On December 26, 2025, Israel formally recognized what it termed the Republic of Somaliland, marking a significant shift in its policy toward the Horn of Africa. The move altered the political equation along one of the world's most sensitive maritime routes.

It consolidates a four-party alignment linking Israel, India, the UAE, and Ethiopia. This emerging axis focuses on securing maritime chokepoints in the Gulf of Aden and Bab al-Mandeb, while laying the groundwork for an alternative to China's Belt and Road Initiative (BRI) in eastern Africa.

The timing followed months of escalating regional pressure, including the 12-day Israeli–Iranian war in June 2025 and the Yemeni maritime blockade targeting vessels bound for Israeli ports following the beginning of Israel's genocide of Palestinians in Gaza.

Securing these waterways became a core component of Israeli national security planning. Somaliland's geography explains its importance. Somaliland's territory overlooks one of the world's busiest maritime arteries, facilitating trade flows linking Asia, Africa, and Europe. 

Tyler Durden Mon, 05/25/2026 - 21:05

Debt Remembered And Debt Ignored

Debt Remembered And Debt Ignored

Authored by Greg Marasca via AmericanThinker.com,

Memorial Day compels Americans to confront a word we avoid: debt.

Not the financial kind that Congress pretends will magically resolve itself, but the older, heavier meaning — the kind carved into headstones at Arlington and cemeteries across the country.

It is the debt paid in full by those who gave their lives, so the rest of us could live free.

No interest rate can measure it. No budget line can contain it. It is final, irrevocable, and sacred.

Every year, we pause, as we should, to acknowledge that liberty is no accident. Its purchase price is steep. Many stood a post, walked point, climbed into a cockpit, or sailed into hostile waters so that we could enjoy the ordinary luxuries of American life: arguing about politics, grilling in the backyard, complaining about work, raising families in relative peace. The fallen paid the ultimate debt, while the rest of us live on the dividends of their courage.

There remains another debt that all Americans must face, one far less noble and far more self-inflicted: the national debt that at $39 trillion is growing faster than the economy and its current path is unsustainable with interest payments amounting to $1 trillion a year — a figure most cannot comprehend.

Unlike the solemn debt honored on Memorial Day, this one grows not from sacrifice but from avoidance, avarice and unaccountability. It is the bill we keep pushing onto future generations because those elected lack the discipline and forbearance to make the difficult choices.

The contrast is stark.

On one side are the young Americans who never hesitated when their country asked for everything. On the other, a political culture that bemoans over the smallest act of fiscal restraint. The fallen gave their lives, while Washington can’t forego a spending increase.

Memorial Day reminds us that debts must be paid.

The laws of economics will not suspend themselves out of patriotic courtesy. We borrow to fund today’s comforts while expecting tomorrow’s citizens, many of whom are not yet born, to pay the bill.

Imagine explaining this to a Marine who never made it home from Fallujah or a soldier who fell in the Korengal Valley. They understood duty in its rawest form. They lived by the credo that you don’t hand your problems over to the next guy.  You handle them.  You carry your weight.  You complete the mission.

The contrast is telling and that is the point.

Memorial Day should not be reduced to a political talking point; rather it should remind us of the standards we once held. The men and women we honor this day lived with a clarity of purpose that our national budget sorely lacks. They understood that freedom requires responsibility. They knew that choices have consequences. They accepted that service is putting the country’s needs ahead of one’s personal initiatives.

If we truly want to honor their memory, we can start by adopting even a fraction of that discipline. We can demand leaders who treat the national debt as a real threat, not a distant abstraction. We can stop pretending that borrowing without limit is a harmless national pastime. And we can remember that the freedoms secured by the fallen are weakened when the nation they died for is weighed down by obligations it cannot meet.

The debt paid by America’s fallen is unpayable, but it is not unteachable. It is written in sacrifice, in folded flags, in names etched into stone.

One debt was paid in blood. The other is being charged to our children. 

And if we forget the difference, then we have learned nothing from those who paid the first.

Tyler Durden Mon, 05/25/2026 - 20:45

China Moves To Shut Down Offshore Stock-Trading Channels Used By Mainland Investors

China Moves To Shut Down Offshore Stock-Trading Channels Used By Mainland Investors

Authored by Arthur Zhang via The Epoch Times,

China’s securities regulator has opened enforcement actions against Futu, Tiger Brokers, and Longbridge Securities, accusing the offshore online brokerages of illegally serving mainland investors who used the platforms to trade U.S. and Hong Kong stocks.

The China Securities Regulatory Commission (CSRC) said on May 22 that it had opened investigations and issued administrative penalty pre-notification letters against Tiger Brokers (NZ) Limited, Futu Securities International (Hong Kong) Limited, Longbridge Securities (Hong Kong) Limited, and their related onshore and offshore entities.

The regulator said the firms conducted securities brokerage and margin-financing services in mainland China without approval and also “illegally” engaged in public-fund sales and futures brokerage activities.

The action was announced alongside a broader campaign by eight Chinese agencies to “comprehensively rectify” cross-border securities, futures, and fund operations.

The agencies involved are the CSRC, Ministry of Industry and Information Technology, Ministry of Public Security, People’s Bank of China, State Administration for Market Regulation, National Financial Regulatory Administration, Cyberspace Administration of China, and State Administration of Foreign Exchange.

2-Year Wind Down

The eight-agency implementation plan sets a two-year rectification period to phase out unauthorized mainland-facing services by offshore securities, futures, and fund institutions. During that period, offshore firms are barred from providing existing mainland investors with buy orders or fund-inflow services; only one-way selling and fund withdrawals are permitted. After the period ends, the firms must shut down mainland websites, trading software, and supporting servers.

The CSRC said investor property safety would not be affected by the rectification campaign and that affected overseas institutions must communicate with mainland investors and arrange account handling.

The policy effectively turns affected mainland-facing accounts into exit-only vehicles—investors can sell positions and withdraw funds, but cannot buy new purchases or add funds. It does not amount to confiscation of client assets, but it closes a private, app-based route that had allowed Chinese retail investors to trade overseas securities more directly than through Beijing-approved channels.

The implementation plan also extends beyond the brokerages themselves. It targets offshore institutions, mainland affiliates and partners, intermediaries, internet platforms, apps, and online self-media accounts that publish account-opening tutorials or other promotional materials for unauthorized cross-border trading.

Futu, Tiger Disclose Penalties

Futu Holdings, which is listed on Nasdaq, said it received a notice of investigation and an administrative penalty pre-notification letter from the CSRC and its Shenzhen bureau. The company said the regulator proposed ordering related entities to rectify or cease the activities, confiscate illegal gains, and impose fines totaling about 1.85 billion yuan, or about $271 million. The CSRC also proposed a personal fine of 1.25 million yuan, or about $183,575, against Futu founder and CEO Li Hua.

Futu said the proposed penalty remains subject to further proceedings and final determination by the CSRC. The company said it is entitled to submit statements, present defenses, and request a hearing. It also said mainland Chinese accounts accounted for about 13 percent of total funded accounts at the end of the first quarter of 2026, while business operations outside mainland China remain normal.

UP Fintech Holding, the Nasdaq-listed parent of Tiger Brokers, said in a Form 6-K exhibit that certain subsidiaries received notices from the CSRC’s Beijing Bureau on May 22. The company said the bureau accused the subsidiaries of conducting unlicensed cross-border securities business and fund and futures activities in mainland China. UP Fintech said the bureau imposed administrative penalties totaling about 308.1 million yuan (about $45.34 million) and confiscation of income totaling about 103.1 million yuan (about $15.17 million). It also said CEO and controlling person Wu Tianhua received a warning and a 1.25 million yuan penalty (about $183,965).

UP Fintech said retail client assets in mainland China under its consolidated accounts represented about 10 percent of total client assets at the end of 2025. The company said it accepts the penalty, is cooperating with regulators, and will implement required rectification measures.

The CSRC stated it intends to confiscate all “illegal gains” from Tiger, Futu, Longbridge, and related entities, but its public announcement did not disclose a combined illegal-income figure for all three firms.

The announcement triggered sharp selling in Futu and UP Fintech shares. Futu closed at $89.76, down $34.09, or 27.5 percent, after trading as low as $73.02 intraday. UP Fintech closed at $4.36, down $1.49, or 25.5 percent, after trading as low as $3.18 intraday.

Years in the Making

The May 22 enforcement action marks an escalation of a campaign that began more than three years ago. In its official Q&A, the CSRC said it began rectifying cross-border operations by offshore institutions on Dec. 30, 2022, to bar such institutions from “illegally” soliciting mainland investors and opening new accounts for them.

The latest plan expands the campaign from individual enforcement to full-chain governance. The CSRC said the new requirements cover marketing, account opening, processing trading instructions, fund transfers, internet platforms, apps, and independent content creators that guide mainland investors into unauthorized offshore accounts.

The regulator said offshore institutions and related mainland entities “violate Chinese law” if they conduct securities, futures, or fund business in mainland China without state approval, whether directly or through affiliates and partners. It also said related violations involving cybersecurity, personal information protection, anti-money laundering, and foreign-exchange rules are included in the state’s “rectification campaign.”

Tech-Linked Brokers in the Crosshairs

Futu, Tiger, and Longbridge built their appeal by offering digital brokerage platforms that made it easier for Chinese-speaking retail investors to trade U.S. and Hong Kong securities.

Futu’s founder, Li Hua, was a former Tencent employee, and Tencent has been a major shareholder of the digital brokerage firm. Tiger Brokers was founded by Wu Tianhua, a former NetEase executive, and has counted Xiaomi as a strategic investor. Longbridge is a newer online brokerage with a founding and investor background often associated with China’s internet sector, according to Chinese state media.

The official allegation by the CSRC did not frame the action as a campaign against those technology companies. Still, the cases fit a broader pattern in which Beijing has brought app-based financial activity under tighter state supervision, especially where online platforms touch securities trading, fund flows, investor data, and cross-border transactions.

Capital-Control Signal

The CSRC described the campaign as a move to protect investors, maintain financial-market order, and guide outbound investment through lawful channels. In its Q&A, the regulator said investors can use routes such as Hong Kong Stock Connect, Qualified Domestic Institutional Investor (QDII) products, and Cross-boundary Wealth Management Connect (Cross-boundary WMC) for overseas investment.

Those channels are more limited than direct app-based trading in U.S. and Hong Kong stocks. Stock Connect covers eligible Hong Kong-listed securities rather than the full U.S. market. QDII products are managed through approved institutions and quotas. Cross-boundary WMC is limited by geography, product scope, and eligibility rules.

That makes the policy more than a licensing dispute. Beijing is not banning all offshore investment by mainland residents, but it is closing a private route that made foreign securities more accessible to ordinary investors. The structure of the rule pushes capital back toward channels that regulators can monitor, limit, and adjust.

On Chinese social media, some users reacted with frustration, saying the move narrows ordinary households’ ability to diversify outside China’s domestic markets. Others doubted that money previously invested through offshore brokers could be redirected toward mainland A-shares.

There is a broader concern among retail investors that Beijing is reducing access to overseas assets while China’s domestic stock market continues to struggle with investor confidence.

Tyler Durden Mon, 05/25/2026 - 19:55

'Weeks Inside Highly Fortified Bunkers': Report Details Painfully Slow Communication Within Iran's Leadership

'Weeks Inside Highly Fortified Bunkers': Report Details Painfully Slow Communication Within Iran's Leadership

According to a Sunday CBS News report citing US officials, Iran's Supreme Leader Mojtaba Khamenei is still in hiding in a secret location with extremely limited communication to the outside world. Driven underground by a pervasive fear within Tehran's remaining leadership structure following relentless US and Israeli military strikes, the Supreme Leader is effectively isolated.

This information is nothing 'new' - but even as talks with the US are now little by little reportedly proceeding - and as a ceasefire has been extended by weeks - the Ayatollah is clearly not taking any chances. The CIA and Mossad have openly acknowledged that are actively looking for his hideout. But the report seeks to provide an explanation as to why Tehran's response to any specific updated draft peace deal often takes several days.

CBS detailed how the isolation is to keep Western intelligence from mapping his coordinates, which involves only being reached via a slow, archaic network of physical couriers designed to conceal his location.

The report further alleges that these heightened security measures have significantly disrupted communication lines within Iran's government, complicating active negotiations with the Trump administration and at times dragging responses to US peace proposals to a grinding halt.

But this is also to a large degree by design, to allow the different military units autonomy of command in the instance for more 'decapitation strikes' targeting governing centers in Tehran.

The end result, says CBS, is that "When the U.S. sends proposed details, the difficulty in reaching the supreme leader means there can be a long delay before the U.S. receives a response, two of the officials said."

Yet, it wasn't long ago that White House officials and mainstream pundits were insisting that the Ayatollah is not actually in charge of the country. But now assumptions have shifted back, apparently.

The report claims further:

At this point, most Iranian leaders don't see daylight, spending weeks inside highly fortified bunkers and avoiding speaking to each other unless absolutely necessary, the sources said. 

"Watching them try to figure out how to talk to each other is almost like watching a sitcom. They are completely exasperated," one official said. 

The most cautious measures are being taken by the supreme leader. 

By design, even officials at the highest levels of the Iranian government don't know where he is and have no way to contact him directly. 

One official followed with: "This is why you see people saying things like, 'The supreme leader has agreed to the framework,' or 'We're waiting to hear back on the final deal points.' Every piece of information he receives is dated and there's a lot of latency to his responses," one official said.

It has become obvious that the negotiations process has become painfully slow and confused, and so this narrative by anonymous US officials seems an effort to lay blame squarely on the Iranians, instead of Washington's own often shifting goals and conditions.

Tyler Durden Mon, 05/25/2026 - 19:20

Democrats Using Black Athletes As Pawns In Redistricting War

Democrats Using Black Athletes As Pawns In Redistricting War

The Congressional Black Caucus, aligned with the NAACP, is urging black college athletes to avoid Southeastern Conference schools in Southern states as a form of economic pressure against Republican-drawn redistricting maps that eliminate majority-black congressional districts. The campaign is called "Out of Bounds,” and is essentially asking young black athletes to forfeit their best shot at a professional sports career so Democratic lawmakers can make a political statement about redistricting.

NAACP calls for black athletes to boycott college sports in south

“Across the South, Black athletes have helped build some of the most profitable college athletic programs in America, generating hundreds of millions of dollars in annual revenue,” the NAACP argues on its “Out of Bounds” campaign website. “At the same time, several southern state governments are moving to limit, reduce, weaken, or erase Black voting representation by creating new, unconstitutional voting districts.”

House Minority Leader Hakeem Jeffries framed the redistricting fights as "an unprecedented attack on black political representation,” demanding "an unprecedented response." That response, apparently, involves steering eighteen-year-old football recruits away from Alabama, Georgia, LSU, Florida, Tennessee, Texas, and Texas A&M - programs that collectively represent the most direct pipeline to the NFL in American sports. Jeffries said black lawmakers are "standing in solidarity with NAACP in its call for athletes to boycott institutions within the SEC that belong to states that have unleashed these Jim Crow-like racially oppressive tactics, which is unacceptable, unconscionable and un-American,” he continued. “And we believe that the silence of these institutions is complicity, and we will not stand for it.” 

For a talented black athlete from anywhere in the country, an SEC scholarship is frequently the fastest and most visible route to a professional contract, financial security and generational wealth. Yet, Jeffries and CBC Chair Yvette Clarke are asking those athletes to set that aside. 

"The Congressional Black Caucus cannot support legislation benefiting major athletic institutions that continue to remain silent while black voting rights and black political power are being systematically dismantled across the South,” Clarke said.

The legislation in question is the SCORE Act, a bipartisan proposal backed by the NCAA that would establish national standards for compensating college athletes. The bill had been scheduled for a House floor vote before Republican leaders were forced to postpone it after CBC members signaled opposition. 

In other words, a bill designed to ensure college athletes get paid was delayed, in part, because black Democratic lawmakers blocked it to protest that Southern public universities are not taking a stand against redistricting. 

According to Jeffries, these universities "should feel compelled to speak up. Not because of their athletic programs; because it's the right thing to do." Clarke argued that "institutions that profit from black talent and black communities have a responsibility to stand with those communities when their fundamental rights are under attack," extending that logic beyond athletics to "corporate America or any other institution within American civil society."

Clarke warned that the effort is "just the beginning" and could spread beyond state universities, adding, "Let this serve as an example: Silence from our institutions in moments of injustice carries consequences."

The CBC and NAACP can package this campaign in the language of “justice” and “solidarity,” but strip away the rhetoric, and the message is brutally simple: Democratic politicians want young black athletes to torpedo their own futures to wage a political pressure campaign over congressional maps. Democrats may be angry over Republican redistricting efforts, but they are asking young black athletes to walk away from the fastest route to the NFL, millions of dollars, and generational wealth over a political battle that has nothing to do with them or SEC football programs.

Tyler Durden Mon, 05/25/2026 - 18:10

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