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Clinton Judge Blocks 'King' Trump's Ability To Fire Federal Workers During Shutdown, Indefinitely

Clinton Judge Blocks 'King' Trump's Ability To Fire Federal Workers During Shutdown, Indefinitely

Earlier this month, hundreds of thousands of intellectually challenged Americans took to the streets for a national 'No Kings' protest against 'King' President Trump. 

Today, a federal judge told the 'king' he can't fire federal workers during the shutdown, indefinitely. 

In a Tuesday order, Judge Susan Illson (Clinton appointee) of the US District Court for the Northern District of California made an earlier temporary ruling permanent. 

Judge Susan Illson

"Today's ruling is another victory for federal workers and our ongoing efforts to protect their jobs from an administration hellbent on illegally firing them," said Lee Saunders, President of AFSCME - a federal workers union. 

The ruling comes after the Office of Management and Budget head Russel Vought announced they were looking to terminate as many as 10,000 federal workers during the government shutdown, also known as a Reduction In Force (RIF). 

RIF notices have already gone out to about 4,000 workers. 

The move by the monarchy resulted in a lawsuit from federal worker unions at the end of last month in anticipation of the layoffs. 

Roughly two weeks ago, members of Congress, including Sen. Susan Collins (R-ME), flipped out over the federal firings - calling the layoffs "arbitrary" in her opposition.

Sen. Susan Collins speaks to reporters at the U.S. Capitol on July 15. Photo: Michael M. Santiago/Getty Images

"Regardless of whether federal employees have been working without pay or have been furloughed, their work is incredibly important to serving the public," Collins said Oct. 10. 

Senate Minority Leader Chuck Schumer, meanwhile, said in a statement that the Trump administration was "callously choosing to hurt people."

And now, 'king' Trump can't do that. 

*  *  *

Tyler Durden Tue, 10/28/2025 - 19:40

States Sue Trump Admin To Try To Stop Suspension Of Food Stamps

States Sue Trump Admin To Try To Stop Suspension Of Food Stamps

Authored by Zachary Stieber via The Epoch Times,

Massachusetts and nearly two dozen other states on Oct. 28 sued the Trump administration to try to force the government to keep funding the food stamp program even if Congress approves no new funding.

The U.S. Department of Agriculture (USDA) must keep funding the Supplemental Nutrition Assistance Program (SNAP), Massachusetts Attorney General Andrea Joy Campbell and 24 other officials, including Kentucky Gov. Andy Beshear and New York Attorney General Letitia James, said in the lawsuit.

“The agency cannot simply suspend all benefits indefinitely, while refusing to spend funds from available appropriations for SNAP benefits for eligible households,” they said.

The lawsuit cited federal law, which states that SNAP benefits “must be furnished to all eligible households.”

Some $5 billion in contingency funds can be used in lieu of new funding from Congress amid the government shutdown, the officials said. The government can also pull from a separate fund that has more than $23 billion in it, they said.

The USDA recently told states not to issue SNAP benefits because of the lack of new funding from Congress. The agency, which administers SNAP with the help of states, said in a memorandum that it could not legally use contingency funds to cover the shortfall in November, which has been estimated at $9 billion.

The officials with states and the District of Columbia on Tuesday asked the federal court in Massachusetts to declare the department’s directive illegal and order the department to furnish benefits already calculated by state agencies for November.

“More than one million people in Massachusetts rely on SNAP to put food on the table,” Campbell said in a statement. “Despite having the money to fund SNAP, the Trump Administration is creating needless fear, angst and harm for millions of families and their children especially as we approach the holidays. It is past time for the Trump Administration to act to help, rather than harm, those who rely on our government.”

Defendants in the suit include the USDA and the U.S. Office of Management and Budget.

The USDA has said it does not comment on pending litigation.

The White House declined to comment.

“Democrats chose to shut down the government knowing full well that SNAP would soon run out of funds. It doesn’t have to be this way,” a spokesperson for the Office of Management and Budget told The Epoch Times in an email.

Lawsuit Over SNAP Change

A day prior, food stamp recipients filed a class-action lawsuit in federal court in New York, alleging the USDA illegally terminated a blanket waiver that let adults who are not disabled and do not have any dependents ignore SNAP work requirements.

SNAP participants must work at least 80 hours a month to receive food stamps, unless they are exempt for disability or another reason.

States for years could request waivers for able-bodied adults without dependents in areas with a “lack of sufficient jobs,” with evidence including “a lack of jobs in declining occupations or industries.” States frequently receive waivers. New York has received full or partial waivers since at least 2020.

Under the One Big Beautiful Bill Act, signed by President Donald Trump on July 4, states can only receive the waivers if an area’s unemployment rate exceeds 10 percent. The updated waiver requirements took effect when the bill was signed, the USDA informed states in September.

On Oct. 3, the USDA said that it would terminate any active waivers in 30 days if states did not terminate the waivers themselves. Officials also said states should not seek new waivers.

“Able-bodied adults have ample opportunities to re-engage with their communities even in areas with relatively high unemployment through other activities that meet the requirement,” the agency said. “Additionally, State agencies must screen each work registrant to determine if it is appropriate, based on the State agency’s criteria, to refer the individual to a SNAP Employment and Training program.”

That move violated the Administrative Procedure Act because it was arbitrary and capricious, according to the new suit. Officials also failed to provide a reasoned explanation of the pending termination of active waivers, plaintiffs said. New York’s current waiver was approved on Oct. 2, 2024, and was set to run through February 2026.

“USDA’s unlawful action must not be allowed to stand,” Laboni Rahman, an attorney at the Legal Aid Society, which is representing food stamp recipients and the nonprofit Urban Justice Center-Safety Net Project, said in a statement. “No New Yorker should go hungry because of a thoughtless decision made without regard for the people it impacts.”

About 100,000 SNAP recipients in New York City would be impacted by the termination of the waiver, local officials said.

Plaintiffs are asking a judge to block the USDA from terminating the waiver, pending a hearing on the action.

Tyler Durden Tue, 10/28/2025 - 19:15

Google Deal With NextEra Will Restart Iowa Nuclear Plant In 2029

Google Deal With NextEra Will Restart Iowa Nuclear Plant In 2029

As we have been writing about for the better part of the last 2 years, growing electricity needs from artificial-intelligence data centers are pushing tech giants back toward nuclear power.

On Monday, NextEra Energy and Google announced a deal to restart the Duane Arnold Energy Center near Cedar Rapids, Iowa, which closed in 2020 after 45 years of operation. The 615-megawatt plant is expected to return to service in early 2029 under a 25-year power purchase agreement with Google, Reuters reported.

Shares of NextEra rose more than 1% after the announcement. The move adds to recent nuclear-supply arrangements tied to hyperscale cloud operators, echoing plans at the former Three Mile Island facility in Pennsylvania aimed at Microsoft data centers. As we have written about extensively on Zero Hedge, companies including Google, Microsoft, and Amazon have also signed agreements to buy future energy from advanced nuclear projects such as small modular reactors and fusion systems.

Reuters writes that NextEra and Google said they will also explore new nuclear technologies. CEO John Ketchum noted, “Restarting Duane Arnold marks an important milestone for NextEra Energy,” adding, “Our partnership with Google not only brings nuclear energy back to Iowa — it also accelerates the development of next-generation nuclear technology.”

Ruth Porat, Alphabet and Google’s president and CIO, said, “This partnership serves as a model for the investments needed across the country to build energy capacity and deliver reliable, clean power, while protecting affordability and creating jobs that will drive the AI-driven economy.”

NextEra will acquire the 30% stake previously held by Central Iowa Power Cooperative and Corn Belt Power Cooperative, taking full ownership. Central Iowa Power Cooperative will continue purchasing its share of output under the same terms as Google.

While three nuclear restart efforts are underway in the U.S., no previously shut down plant has yet come back online.

Nuclear names soared on Tuesday morning after Cameco and the Trump admin announced an $80 billion deal with Westinghouse Electric (Cameco owns 49%) to build nuclear reactors, the latest push to meet rising demand for electricity from artificial intelligence.

The strategic partnership, which also involves Brookfield Asset Management and Cameco, aims to deliver on President Trump’s AI ambitions and scale up an industry he sees as vital to competing with China. It will create tens of thousands of jobs, the companies said in a statement on Tuesday.

CCJ announced that the company and Brookfield Asset Management have entered into a partnership with the US Government to accelerate the deployment of Westinghouse's reactor technology across the US. The $80bn commitment is expected to include near-term financing of long lead time items. In a note from Goldman's research team (which turned bullish on the name about a year ago, and roughly 3 years after us) wrote that they "view this partnership as a significant step forward in reinvigorating nuclear supply chains to accelerate deployment of nuclear power deployment in the United States. We reiterate our Buy rating and highlight key takeaways within."

According to the release, each two-unit Westinghouse AP1000 project creates or sustains 45,000 manufacturing and engineering jobs in 43 states, and a national deployment will create more than 100,000 construction jobs, the companies said. In short, this is a huge win-win deal for everyone (except a handful of environmental radicals). 

Tyler Durden Tue, 10/28/2025 - 18:50

Israeli Defense Firm Opens Regional Arm In UAE, First Since Abraham Accords

Israeli Defense Firm Opens Regional Arm In UAE, First Since Abraham Accords

Via Middle East Eye

An Israeli state-owned defense company has set up a subsidiary to operate in the United Arab Emirates, in the first such move since Israel and Abu Dhabi normalized relations in 2020. 

Controp Precision Technologies will establish and register the subsidiary in the Abu Dhabi Global Market, or ADGM, an economic zone in the Emirati capital. The Israeli defense ministry approved the move on Sunday, the Times of Israel reported.  

The Abu Dhabi-based subsidiary will be Controp’s regional arm in the Gulf region, overseeing marketing, sales and maintenance of its electro-optical systems used for intelligence, surveillance and reconnaissance missions across air, land and sea.

The Times of Israel reported that at a later stage, Controp will directly compete for defense tenders in the UAE and neighboring countries. 

The UAE normalized ties with Israel under the Abraham Accords in September 2020. Since then, the two countries have strengthened economic and political ties. Trade of goods between Israel and the UAE totalled around $3.2bn in 2024, according to the Israeli Central Bureau of Statistics.

In January, Thirdeye Systems, an Israeli military supplier, sold a 30 percent stake to Emirati state-owned defense conglomerate Edge for $10m.

Relations became somewhat strained after the outbreak of the Gaza war, with the UAE offering occasional condemnations of Israeli actions. In September, Abu Dhabi described an Israeli attack on Hamas officials on Qatar as "treacherous", using unusually strong rhetoric.

Earlier this month, a number of Israeli defense companies were banned from the Dubai Airshow pending a "technical review". 

Controp was founded in 1988 to develop and manufacture electro optical control systems for intelligence surveillance. Its camera systems are used in drones, helicopters, land vehicles, surveillance towers and vessels. 

The investment in establishing the UAE subsidiary is estimated to cost up to $30m, according to the Times of Israel. The report added that the subsidiary would be managed by an Israeli citizen, and full control would remain in the hands of the Israeli parent company. 

Tyler Durden Tue, 10/28/2025 - 18:25

These States Lose Most If Federal Food Aid Runs Out

These States Lose Most If Federal Food Aid Runs Out

Authored by Lawrence Wilson via The Epoch Times,

More than 41 million Americans won’t receive federal help buying groceries in November unless Congress reopens the government.

“The well has run dry,” the Department of Agriculture wrote on its website on Oct. 27.

The department oversees the Supplemental Nutrition Assistance Program (SNAP), which serves about 12 percent of the U.S. population.

The government shutdown began Oct. 1 after the Senate failed to advance a stopgap funding resolution introduced by Republicans, which would have temporarily funded the government while Congress completed 2026 spending legislation.

Nearly all Democrats have rejected the measure until Republicans come to terms on their proposals to extend health care funding expiring end of the year. Republicans contend that those negotiations should happen in the context of regular spending negotiations, not as a condition for reopening the government.

Here’s a look at which states stand to lose the most if the shutdown extends another week, and how that could affect both parties.

States Receiving the Most Funding

SNAP funding totaled more than $7.8 billion in May 2025, the last month for which data is available.

Nearly half of all SNAP funds went to 7 large-population states in the month of May.

California drew the largest share at more than $1 billion in federal funding—about 13 percent of the total.

New York received $647 million, and Texas received $614 million. The next highest amounts went to Florida, $536 million; Illinois, $368 million; Pennsylvania, $368 million; and Ohio, $356 million.

Those states together received 49 percent of the food assistance benefit for May 2025, and they served about 49 percent of those receiving benefits.

Total spending for SNAP reached $99.8 billion in fiscal year 2024.

States are now preparing for the possibility of no SNAP funding in November.

A New York State Department of Social Services website carried this warning: “Due to the ongoing federal government shutdown, November SNAP benefits may be delayed. SNAP benefits cannot be issued for November unless the federal government shutdown ends or other federal action provides necessary funding.”

The site promised those receiving assistance an update by Nov. 1.

California Gov. Gavin Newsom warned residents on Oct. 20 that its food assistance funds would likely be delayed in November if the shutdown lasted beyond Oct. 23.

States With Highest Rate of Participation

On average, about 12 percent of Americans receive SNAP benefits. In some states, that percentage is much higher. These states stand to lose fewer federal dollars, but the impact could be greater, affecting a relatively larger share of their population.

Sixteen states and the District of Columbia have higher-than-average participation in SNAP.

Of those, New Mexico has the highest rate, with 21 percent of its 2.1 million people receiving food assistance. The District of Columbia is next with 20 percent of its 700,000 residents participating in SNAP. Oregon is next with 18 percent participation, followed by Louisiana and Oklahoma at 17 percent each.

About 15 percent of the population receives SNAP benefits in West Virginia, Nevada, Massachusetts, Pennsylvania, New York, Illinois, and Michigan.

Political Speculation

Leaders in both political parties have blamed the other for the impending loss of food aid.

“Forty-two million people across America are going to suffer from [losing] those SNAP benefits that they count on right before Thanksgiving because [Senate Minority Leader] Chuck Schumer and Democrats are so angry with President [Donald] Trump that they just want to find a way to say no,” House Majority Whip Steve Scalise (R-La.) told reporters on Oct. 22.

Sen. Amy Klobuchar (D-Minn.) said in an Oct. 25 statement: “The Administration is choosing not to feed Americans in need—choosing to inflict pain on families—despite knowing that it has the authority to do so. That is unacceptable. Hunger isn’t a bargaining chip.”

Any loss of SNAP funding is expected to affect the constituencies of both parties similarly.

Schumer and House Majority Leader Hakeem Jeffries are both Democrats from New York, a state having higher-than-average participation in SNAP and ranking second highest in total SNAP funding.

House Majority Leader Mike Johnson and House Majority Whip Steve Scalise are both Republicans from Louisiana, where 17 percent of the population receives SNAP assistance, well above the national average.

In states where a majority voted for Trump in the 2024 presidential election, the combined rate of SNAP participation was 12 percent.

In states that voted for then-Vice President and presidential candidate Kamala Harris, the rate was slightly higher at 13 percent.

The Trump administration has said that “contingency funds are not legally available to cover regular benefits” for SNAP, so congressional action will be needed to prevent a loss of benefits.

And there is no legal pathway to reimburse states that expend their own money to cover November’s SNAP payments, should they choose to.

“Despite their willingness, States cannot cover the cost of benefits and be reimbursed,” the department said in a statement.

Tyler Durden Tue, 10/28/2025 - 16:20

US Insists Ceasefire Will Hold As Israel Launches Heavy Strikes On Gaza City

US Insists Ceasefire Will Hold As Israel Launches Heavy Strikes On Gaza City

Update(1457ET): Israel’s Defence Minister Israel Katz has alleged Hamas fighters attacked IDF troops despite an ongoing ceasefire. "Hamas will pay a heavy price for attacking soldiers in Gaza and for violating the agreement to return the bodies of the hostages," Katz said as heavy bombardments in the Strip have been reported. He declared Hamas' actions are "crossing of a bright red line, to which the [military] will respond with great force."

Gaza's civil defense agency has confirmed several airstrikes in a statement to Al Jazeera. Hamas is denying the accusations, in a statement saying "Israel must realize we are committed to the agreement, and they must stop falsely accusing us of violating it." This as Al Jazeera writes, "For the past 30 minutes, there has been major activity in the air over Gaza’s skies, with drones hovering above." A series of airstrikes have hit Gaza City in particular.

In response to these developments the US is insisting it believes the ceasefire will hold. "Despite the clashes today, the ceasefire agreement in Gaza will continue," Vice President J.D. Vance said Tuesday afternoon.

* * *

"Prime Minister Netanyahu instructed the military echelon to carry out immediate and powerful strikes in the Gaza Strip," a statement issued moments ago by the Prime Minister's office indicates.

"Following security consultations, Prime Minister Netanyahu instructed the military to immediately carry out powerful strikes in the Gaza Strip," a statement from his office says. Netanyahu has accused Hamas of committing a "clear violation" of the ceasefire deal.

AFP/Getty Images

Though the past over 2-weeks in which the Hamas ceasefire has held has witnessed intermittent flare-ups in fighting, this could be the big one which unravels the whole thing.

Less than an hour before the new strikes were ordered by Netanyahu, Fox News' Trey Yingst reported, "Hamas violated the ceasefire by attacking IDF soldiers in Rafah, I'm told by an Israeli military official."

And Al Jazeera says, "In a sign of the fragility of the ceasefire, Israeli troops were shot at in the southern city of Rafah on Tuesday and returned fire, an unnamed Israeli military official told The Associated Press."

  • SHEKEL HITS SESSION LOW AS NETANYAHU INSTRUCTS ON GAZA STRIKES
  • HAMAS SAYS POSTPONES TODAY'S HANDOVER OF ISRAELI HOSTAGE BODY

Expect the blame-game to begin, as IDF strikes resume in the Gaza Strip once again. Since the ceasefire has been on, however, some 100 Palestinians have died. Thirteen bodes of hostages remain in Gaza.

Axios reviews of the latest developments:

  • The Trump administration has been focusing over the last several weeks on stabilizing the ceasefire and pressing both parties to avoid steps that could detonate it.
  • As part of that mission, the White House sent several top officials to Israel and established a U.S. command center in Israel to oversee it and monitor the situation on the ground.
  • But a deepening dispute over the return of deceased hostages by Hamas, and a firefight on Tuesday in the city of Rafah, intensified calls in Israel for military action. The strikes Netanyahu ordered could rupture the ceasefire altogether.

The question over the remaining deceased hostage bodies has renewed put pressure on the Netanyahu government to not move on to the second phase of ceasefire:

The families of Israeli hostages on Monday demanded that the next steps in the US-brokered Gaza peace plan be put on hold until Hamas returns the remaining bodies of dead captives.

“Hamas knows exactly where every one of the deceased hostages is held. Two weeks have passed since the deadline set in the agreement for the return of all 48 hostages, yet 13 remain in Hamas captivity,” the Hostages and Missing Families Forum said.

Further, the Israeli military has accused Hamas of staging a propaganda campaign which lies about efforts to recover slain hostages:

developing...

Tyler Durden Tue, 10/28/2025 - 15:50

US Insists Ceasefire Will Hold As Israel Launches Heavy Strikes On Gaza City

US Insists Ceasefire Will Hold As Israel Launches Heavy Strikes On Gaza City

Update(1457ET): Israel’s Defence Minister Israel Katz has alleged Hamas fighters attacked IDF troops despite an ongoing ceasefire. "Hamas will pay a heavy price for attacking soldiers in Gaza and for violating the agreement to return the bodies of the hostages," Katz said as heavy bombardments in the Strip have been reported. He declared Hamas' actions are "crossing of a bright red line, to which the [military] will respond with great force."

Gaza's civil defense agency has confirmed several airstrikes in a statement to Al Jazeera. Hamas is denying the accusations, in a statement saying "Israel must realize we are committed to the agreement, and they must stop falsely accusing us of violating it." This as Al Jazeera writes, "For the past 30 minutes, there has been major activity in the air over Gaza’s skies, with drones hovering above." A series of airstrikes have hit Gaza City in particular.

In response to these developments the US is insisting it believes the ceasefire will hold. "Despite the clashes today, the ceasefire agreement in Gaza will continue," Vice President J.D. Vance said Tuesday afternoon.

* * *

"Prime Minister Netanyahu instructed the military echelon to carry out immediate and powerful strikes in the Gaza Strip," a statement issued moments ago by the Prime Minister's office indicates.

"Following security consultations, Prime Minister Netanyahu instructed the military to immediately carry out powerful strikes in the Gaza Strip," a statement from his office says. Netanyahu has accused Hamas of committing a "clear violation" of the ceasefire deal.

AFP/Getty Images

Though the past over 2-weeks in which the Hamas ceasefire has held has witnessed intermittent flare-ups in fighting, this could be the big one which unravels the whole thing.

Less than an hour before the new strikes were ordered by Netanyahu, Fox News' Trey Yingst reported, "Hamas violated the ceasefire by attacking IDF soldiers in Rafah, I'm told by an Israeli military official."

And Al Jazeera says, "In a sign of the fragility of the ceasefire, Israeli troops were shot at in the southern city of Rafah on Tuesday and returned fire, an unnamed Israeli military official told The Associated Press."

  • SHEKEL HITS SESSION LOW AS NETANYAHU INSTRUCTS ON GAZA STRIKES
  • HAMAS SAYS POSTPONES TODAY'S HANDOVER OF ISRAELI HOSTAGE BODY

Expect the blame-game to begin, as IDF strikes resume in the Gaza Strip once again. Since the ceasefire has been on, however, some 100 Palestinians have died. Thirteen bodes of hostages remain in Gaza.

Axios reviews of the latest developments:

  • The Trump administration has been focusing over the last several weeks on stabilizing the ceasefire and pressing both parties to avoid steps that could detonate it.
  • As part of that mission, the White House sent several top officials to Israel and established a U.S. command center in Israel to oversee it and monitor the situation on the ground.
  • But a deepening dispute over the return of deceased hostages by Hamas, and a firefight on Tuesday in the city of Rafah, intensified calls in Israel for military action. The strikes Netanyahu ordered could rupture the ceasefire altogether.

The question over the remaining deceased hostage bodies has renewed put pressure on the Netanyahu government to not move on to the second phase of ceasefire:

The families of Israeli hostages on Monday demanded that the next steps in the US-brokered Gaza peace plan be put on hold until Hamas returns the remaining bodies of dead captives.

“Hamas knows exactly where every one of the deceased hostages is held. Two weeks have passed since the deadline set in the agreement for the return of all 48 hostages, yet 13 remain in Hamas captivity,” the Hostages and Missing Families Forum said.

Further, the Israeli military has accused Hamas of staging a propaganda campaign which lies about efforts to recover slain hostages:

developing...

Tyler Durden Tue, 10/28/2025 - 15:50

OpenAI Must Face Copyright Infringement Claim From Authors, Court Rules

OpenAI Must Face Copyright Infringement Claim From Authors, Court Rules

Authored by Naveen Athrappully via The Epoch Times (emphasis ours),

OpenAI must face allegations of copyright infringement made by authors in a consolidated class action lawsuit, District Judge Sidney H. Stein of the U.S. District Court for the Southern District of New York said in an Oct. 27 order.

A computer with the Open AI logo is staged on a gradient blue background with the shadow of a man in the background in Grenoble in France, on Feb. 12, 2025. Anouk Anglade/Hans Lucas/AFP via Getty Images

In the June 13 consolidated complaint, the plaintiffs - writers who own copyrights for various books - accused OpenAI and Microsoft, which funds OpenAI, of having engaged in “flagrant and harmful infringements of their copyrights.”

“Defendants copied Plaintiffs’ works and then fed them into their ‘large language models’ or ‘LLMs,’ algorithms designed to generate human-like text responses to users’ prompts and queries. These algorithms are at the heart of Defendants’ massive commercial enterprise. And at the heart of these algorithms is systematic theft on a mass scale,” the lawsuit said.

OpenAI asked the court to dismiss the plaintiffs’ accusations of copyright infringement.

In the Oct. 27 order, Stein sided with the authors by denying the motion, observing that the allegations made by plaintiffs “satisfy the elements of a prima facie claim of infringement as to at least some outputs of ChatGPT.”

To train ChatGPT, OpenAI used datasets that included copyrighted words of the plaintiffs, the judge wrote. When prompted, ChatGPT can then generate accurate summaries of books authored by the plaintiffs.

In a court filing, OpenAI said plaintiffs failed to plausibly allege “substantial similarity” between their works and the content output by ChatGPT and that the complaint failed to cite even a single example of the alleged copyright infringement in ChatGPT’s outputs.

OpenAI argued that not all summaries of content qualify as infringement. For instance, summarizing the final chapter of “The Door” by Mary Roberts Rinehart as “the butler did it” cannot be considered as infringement of the author’s copyright, the company said.

Stein dismissed such arguments. For one, the complaint adequately alleges that OpenAI accessed plaintiffs’ works and the infringing outputs made by ChatGPT are based on the authors’ works, which satisfies the requirement of “actual copying,” he wrote.

George R.R. Martin arrives at the premiere of HBO's "Game of Thrones" Season 3 at TCL Chinese Theatre in Hollywood on March 18, 2013.  Kevin Winter/Getty Images

Stein then detailed a ChatGPT summary of “A Game of Thrones,” the first book in the “A Song of Ice and Fire” series by George R. R. Martin. The AI summary described the setting, prologue, main plot points, and ending of the book.

“A more discerning observer could easily conclude that this detailed summary is substantially similar to Martin’s original work, including because the summary conveys the overall tone and feel of the original work by parroting the plot, characters, and themes of the original,” Stein wrote.

Martin is one of the plaintiffs in the lawsuit. Other plaintiffs include authors John Grisham and David Baldacci.

The Epoch Times reached out to OpenAI for comment but did not receive a response by publication time.

Authors Versus AI

The court ruling comes after AI company Anthropic, the maker of Claude AI, agreed to pay $1.5 billion over copyright infringement last month, according to a Sept. 5 post by law firm Banner Witcoff.

Anthropic was accused of using pirated copies of around 500,000 copyrighted works to train its AI, the post said. A court had previously issued a summary judgment on the issue, ruling that the use of pirated copies for training AIs does not qualify as “fair use.”

In a Sept. 25 statement, The Authors Guild, an advocacy group for published writers that is also a plaintiff in the OpenAI lawsuit, welcomed the preliminary approval of the Anthropic settlement.

“The settlement marks a milestone in authors’ fights against AI companies’ theft of their works. It sends a clear signal to AI companies that infringement of authors’ rights comes at a steep price and will undoubtedly push AI companies towards acquiring the books they want legally, through licensing,” the association said. “The case is also significant in that it serves as an example of how class actions can be a successful vehicle for seeking justice for mass copyright infringement.”

Multiple other legal battles have been waged by authors over the use of their works by tech companies for training artificial intelligence models.

On Oct. 15, two authors filed a lawsuit against cloud computing company Salesforce, alleging that the business “pirated hundreds of thousands of copyrighted books to develop its XGen series of large language models.”

A similar copyright infringement case filed by 13 authors against Meta went in the company’s favor in June.

The court ruling dismissed the plaintiffs’ argument that Meta copied their works to create a product that could flood the market with similar works, observing that the authors presented “no evidence about how the current or expected outputs from Meta’s models would dilute the market for their own works.”

Tyler Durden Tue, 10/28/2025 - 15:20

OpenAI Must Face Copyright Infringement Claim From Authors, Court Rules

OpenAI Must Face Copyright Infringement Claim From Authors, Court Rules

Authored by Naveen Athrappully via The Epoch Times (emphasis ours),

OpenAI must face allegations of copyright infringement made by authors in a consolidated class action lawsuit, District Judge Sidney H. Stein of the U.S. District Court for the Southern District of New York said in an Oct. 27 order.

A computer with the Open AI logo is staged on a gradient blue background with the shadow of a man in the background in Grenoble in France, on Feb. 12, 2025. Anouk Anglade/Hans Lucas/AFP via Getty Images

In the June 13 consolidated complaint, the plaintiffs - writers who own copyrights for various books - accused OpenAI and Microsoft, which funds OpenAI, of having engaged in “flagrant and harmful infringements of their copyrights.”

“Defendants copied Plaintiffs’ works and then fed them into their ‘large language models’ or ‘LLMs,’ algorithms designed to generate human-like text responses to users’ prompts and queries. These algorithms are at the heart of Defendants’ massive commercial enterprise. And at the heart of these algorithms is systematic theft on a mass scale,” the lawsuit said.

OpenAI asked the court to dismiss the plaintiffs’ accusations of copyright infringement.

In the Oct. 27 order, Stein sided with the authors by denying the motion, observing that the allegations made by plaintiffs “satisfy the elements of a prima facie claim of infringement as to at least some outputs of ChatGPT.”

To train ChatGPT, OpenAI used datasets that included copyrighted words of the plaintiffs, the judge wrote. When prompted, ChatGPT can then generate accurate summaries of books authored by the plaintiffs.

In a court filing, OpenAI said plaintiffs failed to plausibly allege “substantial similarity” between their works and the content output by ChatGPT and that the complaint failed to cite even a single example of the alleged copyright infringement in ChatGPT’s outputs.

OpenAI argued that not all summaries of content qualify as infringement. For instance, summarizing the final chapter of “The Door” by Mary Roberts Rinehart as “the butler did it” cannot be considered as infringement of the author’s copyright, the company said.

Stein dismissed such arguments. For one, the complaint adequately alleges that OpenAI accessed plaintiffs’ works and the infringing outputs made by ChatGPT are based on the authors’ works, which satisfies the requirement of “actual copying,” he wrote.

George R.R. Martin arrives at the premiere of HBO's "Game of Thrones" Season 3 at TCL Chinese Theatre in Hollywood on March 18, 2013.  Kevin Winter/Getty Images

Stein then detailed a ChatGPT summary of “A Game of Thrones,” the first book in the “A Song of Ice and Fire” series by George R. R. Martin. The AI summary described the setting, prologue, main plot points, and ending of the book.

“A more discerning observer could easily conclude that this detailed summary is substantially similar to Martin’s original work, including because the summary conveys the overall tone and feel of the original work by parroting the plot, characters, and themes of the original,” Stein wrote.

Martin is one of the plaintiffs in the lawsuit. Other plaintiffs include authors John Grisham and David Baldacci.

The Epoch Times reached out to OpenAI for comment but did not receive a response by publication time.

Authors Versus AI

The court ruling comes after AI company Anthropic, the maker of Claude AI, agreed to pay $1.5 billion over copyright infringement last month, according to a Sept. 5 post by law firm Banner Witcoff.

Anthropic was accused of using pirated copies of around 500,000 copyrighted works to train its AI, the post said. A court had previously issued a summary judgment on the issue, ruling that the use of pirated copies for training AIs does not qualify as “fair use.”

In a Sept. 25 statement, The Authors Guild, an advocacy group for published writers that is also a plaintiff in the OpenAI lawsuit, welcomed the preliminary approval of the Anthropic settlement.

“The settlement marks a milestone in authors’ fights against AI companies’ theft of their works. It sends a clear signal to AI companies that infringement of authors’ rights comes at a steep price and will undoubtedly push AI companies towards acquiring the books they want legally, through licensing,” the association said. “The case is also significant in that it serves as an example of how class actions can be a successful vehicle for seeking justice for mass copyright infringement.”

Multiple other legal battles have been waged by authors over the use of their works by tech companies for training artificial intelligence models.

On Oct. 15, two authors filed a lawsuit against cloud computing company Salesforce, alleging that the business “pirated hundreds of thousands of copyrighted books to develop its XGen series of large language models.”

A similar copyright infringement case filed by 13 authors against Meta went in the company’s favor in June.

The court ruling dismissed the plaintiffs’ argument that Meta copied their works to create a product that could flood the market with similar works, observing that the authors presented “no evidence about how the current or expected outputs from Meta’s models would dilute the market for their own works.”

Tyler Durden Tue, 10/28/2025 - 15:20

Corporate Layoffs Spike As Companies Prepare For Tariff Shocks

Corporate Layoffs Spike As Companies Prepare For Tariff Shocks

At the beginning of this year corporate layoffs accelerated with thousands of DEI program employees (dead weight) thrown to the curb, but the streamlining isn't stopping there.  The cuts are not stopping despite solid growth in overall sales and volume (amount of goods sold) in the US.  This might seem counter-intuitive, unless the layoffs are in preparation for a perceived incoming downturn.

The primary factors influencing job cuts are, of course, tariff uncertainty and inflation.

Target's latest announcement of 1000 layoffs and 800 positions eliminated focuses on it's global corporate workforce.  Leftists claim these cuts are a consequence of their supposed "boycott" of Target after the company rolled back DEI initiatives, but there is no evidence to support this.  Target did take a heavy hit from conservative boycotts in 2024 after the company tried to introduce LGBT apparel for children, but again, the white collar cuts are global and are more likely related to tariff uncertainty and inflation.   

And Target is not alone.

Nestle has announced over 16,000 layoffs over the next two years with 12,000 coming from the white collar workforce. 

UPS cut over 12,0000 white collar jobs in 2024 and in July they began shuttering 73 sites and eliminating 20,000 blue collar positions.  The most recent layoffs are efficiency related in expectation of plunging global shipments due to tariffs as well as the loss of 50% of Amazon's volume.

Rivian has eliminated 600 corporate jobs as electric vehicles suffer another year of decreasing consumer interest.

Nike is instituting 2000 white collar layoffs in a restructuring bid.  Nike is in fact suffering from revenue losses, plunging 9.8% year-over-year.  Furthermore, their business model relies heavily on China (24% of manufacturing), which is a primary target of Trump's tariffs. 

Starbucks is dropping 900 corporate employees this month following 1,100 cuts in February.  

Chip company Applied Materials is laying off 1400 white collar workers.  

Morgan Stanley is cutting 2400 employees from its wealth management and admin roles.

Cable giant Charter is eliminating 1200 management jobs.

GM is downsizing approximately 3500 workers total in 2025, citing slowing EV sales and tariff headwinds.

Amazon plans to cut up to 30,000 corporate jobs (represent nearly 10% of the company’s roughly 350,000 corporate employees) as the company works to pare expenses and compensate for overhiring during the peak pandemic demand

From a cost perspective, HQ employees are far more of a burden on a company's bottom line.  Target, for example, stands to save up to $171 million on employees salaries and benefits in a single year by removing 1800 positions.  However, this is only a portion of the $846 million the company has lost in sales from 2024 to 2025.  Meaning, more Target layoffs are probably coming soon.

Streamlining job cuts tend to act as the beginning of a greater avalanche of terminations rather than a fine tuning of labor as they're often portrayed.  Meaning, this trend is going to continue well beyond the next year. 

Inflation has slowed dramatically since the Biden Administration but prices remain high on most necessities including food, energy and housing.  To be fair to Trump, it takes a lot more than 10 months to reverse a stagflationary crisis once it has started.  A deflationary event is needed to bring prices down (or a massive production increase to create oversupply) and higher interest rates have not produced the proper drag on demand. 

In fact, Americans are spending more than ever and taking on more debt than ever.  This is a bad thing if we're talking about finally reducing prices on goods and services.

As for tariffs, a tax on corporate outsourcing is a good thing and long overdue.  The problem is that the positive effects are slow.  Manufacturing is being shifted from other countries back to the US, but not at a scale that's going to revitalize the middle class in the near term.  In other words, the public should expect multiple years of economic pain to produce significant gains.  Anyone who believes there's an easy way out of stagflation is living in a fantasy land.    

A number of companies are clearly coming to this realization and reducing costs (and jobs) to protect themselves from future pitfalls.   

Tyler Durden Tue, 10/28/2025 - 14:40

Texas Sues Tylenol Maker Over Allegedly Omitting Evidence Of Autism Link From Marketing

Texas Sues Tylenol Maker Over Allegedly Omitting Evidence Of Autism Link From Marketing

Authored by Zachary Stieber via The Epoch Times (emphasis ours),

Tylenol’s current and former manufacturer intentionally withheld evidence of a link between the drug and autism, a new lawsuit alleges.

Tylenol lines the shelves of a store in Brandon, Miss., on Sept. 24, 2025. John Fredricks/The Epoch Times

“Defendants had the authority and the duty to change the warning labels of Tylenol products based on the significant scientific evidence, but chose not to,” stated the suit, filed by Texas Attorney General Ken Paxton in a court in Texas on Oct. 28.

Some studies have found that babies born to women who took Tylenol or another form of acetaminophen have a higher risk of autism spectrum disorder (ASD) or attention-deficit hyperactivity disorder (ADHD). That includes a 2019 study published by JAMA Psychiatry.

That and other papers meant pregnant women should be cautioned against indiscriminately using acetaminophen, more than 90 researchers said in a 2021 statement.

Johnson & Johnson, which for decades manufactured Tylenol, decided against warning consumers and instead promoted Tylenol as safe, including by pointing to a website called BabyCenter that it actually owned, the suit stated.

In 2022, Johnson & Johnson spun off the manufacturing unit into a new company, Kenvue.

“This was designed to shield Johnson & Johnson’s assets from claimants who successfully sue because children develop ASD and/or ADHD after their mothers ingested Tylenol during pregnancy,” Paxton said in the suit.

Oral arguments in an appeal in one of the cases are scheduled for November.

The current label for Tylenol does not contain any warnings about autism or ADHD, although federal officials recently said they would be updating the label and told doctors that there is evidence indicating there may be a link.

Johnson & Johnson did not respond to a request for comment regarding the litigation.

A top Johnson & Johnson scientist said in an internal email in 2018, obtained by The Epoch Times—concerning more research about a possible association between Tylenol and neurodevelopmental issues—that “the weight of evidence is starting to feel heavy to me.”

“We will vigorously defend ourselves against these claims and respond per the legal process. We stand firmly with the global medical community that acknowledges the safety of acetaminophen and believe we will continue to be successful in litigation as these claims lack legal merit and scientific support,” a spokesperson for Kenvue told The Epoch Times in an email.

“We also encourage expecting mothers to speak to their health professional before taking any over-the-counter medication, including acetaminophen, as indicated on our product label for Tylenol.”

Paxton is requesting that the court block Johnson & Johnson and Kenvue from deceptively advertising Tylenol in Texas, order the companies to destroy marketing materials that portray Tylenol as safe for pregnant women, and fine the companies $10,000 per violation of the state law prohibiting deceptive promotions.

“Big Pharma betrayed America by profiting off of pain and pushing pills regardless of the risks. These corporations lied for decades, knowingly endangering millions to line their pockets,” Paxton said in a statement.

“Additionally, seeing that the day of reckoning was coming, Johnson & Johnson attempted to escape responsibility by illegally offloading their liability onto a different company. By holding Big Pharma accountable for poisoning our people, we will help Make America Healthy Again.”

Tyler Durden Tue, 10/28/2025 - 14:25

Texas Sues Tylenol Maker Over Allegedly Omitting Evidence Of Autism Link From Marketing

Texas Sues Tylenol Maker Over Allegedly Omitting Evidence Of Autism Link From Marketing

Authored by Zachary Stieber via The Epoch Times (emphasis ours),

Tylenol’s current and former manufacturer intentionally withheld evidence of a link between the drug and autism, a new lawsuit alleges.

Tylenol lines the shelves of a store in Brandon, Miss., on Sept. 24, 2025. John Fredricks/The Epoch Times

“Defendants had the authority and the duty to change the warning labels of Tylenol products based on the significant scientific evidence, but chose not to,” stated the suit, filed by Texas Attorney General Ken Paxton in a court in Texas on Oct. 28.

Some studies have found that babies born to women who took Tylenol or another form of acetaminophen have a higher risk of autism spectrum disorder (ASD) or attention-deficit hyperactivity disorder (ADHD). That includes a 2019 study published by JAMA Psychiatry.

That and other papers meant pregnant women should be cautioned against indiscriminately using acetaminophen, more than 90 researchers said in a 2021 statement.

Johnson & Johnson, which for decades manufactured Tylenol, decided against warning consumers and instead promoted Tylenol as safe, including by pointing to a website called BabyCenter that it actually owned, the suit stated.

In 2022, Johnson & Johnson spun off the manufacturing unit into a new company, Kenvue.

“This was designed to shield Johnson & Johnson’s assets from claimants who successfully sue because children develop ASD and/or ADHD after their mothers ingested Tylenol during pregnancy,” Paxton said in the suit.

Oral arguments in an appeal in one of the cases are scheduled for November.

The current label for Tylenol does not contain any warnings about autism or ADHD, although federal officials recently said they would be updating the label and told doctors that there is evidence indicating there may be a link.

Johnson & Johnson did not respond to a request for comment regarding the litigation.

A top Johnson & Johnson scientist said in an internal email in 2018, obtained by The Epoch Times—concerning more research about a possible association between Tylenol and neurodevelopmental issues—that “the weight of evidence is starting to feel heavy to me.”

“We will vigorously defend ourselves against these claims and respond per the legal process. We stand firmly with the global medical community that acknowledges the safety of acetaminophen and believe we will continue to be successful in litigation as these claims lack legal merit and scientific support,” a spokesperson for Kenvue told The Epoch Times in an email.

“We also encourage expecting mothers to speak to their health professional before taking any over-the-counter medication, including acetaminophen, as indicated on our product label for Tylenol.”

Paxton is requesting that the court block Johnson & Johnson and Kenvue from deceptively advertising Tylenol in Texas, order the companies to destroy marketing materials that portray Tylenol as safe for pregnant women, and fine the companies $10,000 per violation of the state law prohibiting deceptive promotions.

“Big Pharma betrayed America by profiting off of pain and pushing pills regardless of the risks. These corporations lied for decades, knowingly endangering millions to line their pockets,” Paxton said in a statement.

“Additionally, seeing that the day of reckoning was coming, Johnson & Johnson attempted to escape responsibility by illegally offloading their liability onto a different company. By holding Big Pharma accountable for poisoning our people, we will help Make America Healthy Again.”

Tyler Durden Tue, 10/28/2025 - 14:25

"Our Business Has Died": Texas Services Sector Sentiment Slumps Further In October

"Our Business Has Died": Texas Services Sector Sentiment Slumps Further In October

Texas service sector activity contracted further in October, according to business executives responding to The Dallas Fed's survey...

Source: Bloomberg

The revenue index, a key measure of state service sector conditions, fell four points to -6.4, its lowest reading since July 2020...

Labor market measures suggested further declines in employment, though hours worked were largely unchanged this month. The employment index fell slightly to -5.8 from -3.6 in September...

Source: Bloomberg

Perceptions of broader business conditions worsened in October, but respondents’ expectations regarding future service sector activity remained positive, though October readings were below average.

However, it's the responses that give us a glimpse into the harsh reality on the ground as the locals are hardly delighted with either tariffs, high interest rates, falling demand or general economic malaise, which is to be expected from a regional Fed that is largely dependent on the US energy industry (read Texas shale) which in turn has been crippled by Trump's demands to keep oil prices as low as possible if not lower, and has hammered the US oil E&P industry. 

Selected comments below (read the full set here)

Accommodation

The government shutdown and economic malaise are taking a toll on hotel and travel demand.

Administrative and support services

It feels impossible to predict what the hiring and employment market will be in six months. This year has been the most challenging in 15 years of search and staffing. Candidates have failed background checks. Employers have delayed hiring, candidates have accepted counter offers, others have continued interviewing after accepting a new role. These events used to be uncommon and rare. Now they're happening on a regular basis. Revenue swings month to month are drastic. We are trying to budget and forecast, but it is impossible, and I'm on the edge of laying off an employee now.

Business has felt recessionary for over a year—no wonder we knew the jobs numbers were off and kept saying there was no way they were as good as reported, and we were correct. These are very tough times for small and midsized businesses.

The level of uncertainty has increased in the face of higher interest rates and borrowing costs. Layoffs in the energy sector are just now being felt, and the federal shutdown will have a compounding impact.

The government shutdown [is an issue impacting our business].

Most of our customers are federal agencies. If there is a shutdown, our business suffers.

Ambulatory health care services

We are seeing major price escalation resistance.

Credit intermediation and related activities

Some of our long-term clients are beginning to show interest in buying and selling properties again, and others are asking about their ability to replace short-term, bank-type loans with long-term, fixed-rate debt capital.

There are many moving parts to the economic environment, and the disruptions are resulting in an increase of destabilizing factors: the government shutdown, political instability, the anticipated impact of tariffs and the interest rate markets. Cybersecurity is still a priority, especially with the accelerating expansion of artificial intelligence. The cattle market is extremely elevated, and the price of beef over the counter and on the plate continues to be high. The race to expand the electrical grid is heating up. Nuclear-powered sources are back in the news as an alternative source of electrical power generation.

Educational services

Uncertainty about visa approval rates and H1-B visa fees will have a potentially significant negative impact.

Pipeline transportation

Lower oil prices impact producer activity and uncertainty.

Professional, scientific and technical services

We're seeing significant uncertainty among our oil and gas service company clients. Commodity prices are down, and there is no real cause to anticipate an upturn in drilling activities.

The residential market has continued its decline due to the uncertainty of the economy. Homebuilders are having a difficult time selling homes, even with the incentives they are offering, and existing homes are just sitting. The commercial market is a little better but is being held up by energy and data center transactions. We need a major adjustment in the pricing of homes or a significant reduction in the interest rate to get this market moving again.

Interest rates are still too high. Reduction in regulations is improving optimism. The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act will open new opportunities.

We have seen an upturn in work flowing from clients in October in consulting engineering.

All of our customers are scaling back on technology spending.

I feel like our clients are more apprehensive. We are writing a lot of proposals, but they are just sitting. Projects are still being planned, but the execution is being delayed.

I work globally with international companies, so uncertainty is inherently high, and it will likely increase in the coming months. Four new governments in Latin America will be decided within the next six months, and such political transitions always contribute to greater economic and business uncertainty.

Commodity prices adversely affecting upstream oil and gas companies coupled with potential increased costs from renewed China tariffs creates an uncertain or negative outlook.

We are pitching to more small businesses and nonprofits on our marketing and advertising services than we have since founding the company 14 years ago. More than 80 percent of responses from business owners indicate they are not spending money on marketing and additional items until 2026 because of economic uncertainty.

Trump administration volatility causes clients to stall new purchases.

The industrial sector appears to be gaining momentum.

Tariffs [are an issue impacting our business].

We aren't getting the larger requests that we saw at the end of fourth quarter 2024. That makes me nervous as we work on our 2026 pipeline and prospects.

Publishing industries (except internet)

There is significant inflation in regular goods prices.

We continue to be concerned about compounding effects of tariffs, government shutdown, reduced federal spending, wavering consumer confidence and the levels of credit card usage and delinquency (which we expect to increase), as well as the generally antibusiness policies being championed by Republican lawmakers and the Trump administration.

Real estate

The sentiment we see from apartment residents, owners, vendors, employees and others is neither optimism nor excessive worry. Folks are getting by OK, reallocating spending to compensate for high food prices, and they seem resigned to their fate. Immigration and Customs Enforcement (ICE) continues to terrify immigrants, and they are keeping their heads down. Few people are moving, changing jobs or expecting more. The economy feels like it's in the doldrums, and all the outrageous politics just feels like noise. Our company is doing well enough to throw a couple of big events and make improvements to properties we own. Being conservative, focusing on fundamentals and conserving cash have paid off for us. Others see us doing well, so more prospects are coming our way.

We are always hopeful things are going to move forward and upward. Our goal is to survive the next six months.

Repair and maintenance

We are a naturally seasonal business. Our outlook for the future is bright.

Securities, commodity contracts and other financial investments and related activities

Uncertainty remains uncertain.

I wish we would get clarity on tariffs. We have been slow to sign new clients.

Government shutdown, federal employee firings, tariffs, ICE raids, international turmoil and higher cost of living are creating general business uncertainty and increasing downside risks to our businesses.

Specialty trade contractors

Volatility—including interest rates, stock market fluctuations, geopolitical issues and the government shutdown—is creating poor confidence.

Support activities for transportation

With the current administration taking meaningful action to address foreign labor issues, the outlook for the trucking and logistics industry has improved considerably. The decline faced in recent years has been attributable to violations of federal laws, most notably allowing those not legally authorized and without English proficiency to saturate the market and to violate cabotage restrictions. We are encouraged by the renewed emphasis on enforcement and compliance. As these measures take effect and below-market labor practices are curtailed, American motor carriers will once again be able to begin breaking even and then to profit.

Truck transportation

Our business has died.

And finally, one respondent waxed poetic:

With continued angst over secured overnight financing rate, federal funds rate and prime

Pundits are debating whether “it is different this time.”

Federal Reserve keeps tracking,

but economic data’s still lacking.

Historians will laugh or cry at this rhyme!

Source: Dallas Fed

So, with President Trump doing everything in his powers to bring down the price of oil (and therefore gas), it appears the locals can't take it anymore.

Tyler Durden Tue, 10/28/2025 - 14:05

"Our Business Has Died": Texas Services Sector Sentiment Slumps Further In October

"Our Business Has Died": Texas Services Sector Sentiment Slumps Further In October

Texas service sector activity contracted further in October, according to business executives responding to The Dallas Fed's survey...

Source: Bloomberg

The revenue index, a key measure of state service sector conditions, fell four points to -6.4, its lowest reading since July 2020...

Labor market measures suggested further declines in employment, though hours worked were largely unchanged this month. The employment index fell slightly to -5.8 from -3.6 in September...

Source: Bloomberg

Perceptions of broader business conditions worsened in October, but respondents’ expectations regarding future service sector activity remained positive, though October readings were below average.

However, it's the responses that give us a glimpse into the harsh reality on the ground as the locals are hardly delighted with either tariffs, high interest rates, falling demand or general economic malaise, which is to be expected from a regional Fed that is largely dependent on the US energy industry (read Texas shale) which in turn has been crippled by Trump's demands to keep oil prices as low as possible if not lower, and has hammered the US oil E&P industry. 

Selected comments below (read the full set here)

Accommodation

The government shutdown and economic malaise are taking a toll on hotel and travel demand.

Administrative and support services

It feels impossible to predict what the hiring and employment market will be in six months. This year has been the most challenging in 15 years of search and staffing. Candidates have failed background checks. Employers have delayed hiring, candidates have accepted counter offers, others have continued interviewing after accepting a new role. These events used to be uncommon and rare. Now they're happening on a regular basis. Revenue swings month to month are drastic. We are trying to budget and forecast, but it is impossible, and I'm on the edge of laying off an employee now.

Business has felt recessionary for over a year—no wonder we knew the jobs numbers were off and kept saying there was no way they were as good as reported, and we were correct. These are very tough times for small and midsized businesses.

The level of uncertainty has increased in the face of higher interest rates and borrowing costs. Layoffs in the energy sector are just now being felt, and the federal shutdown will have a compounding impact.

The government shutdown [is an issue impacting our business].

Most of our customers are federal agencies. If there is a shutdown, our business suffers.

Ambulatory health care services

We are seeing major price escalation resistance.

Credit intermediation and related activities

Some of our long-term clients are beginning to show interest in buying and selling properties again, and others are asking about their ability to replace short-term, bank-type loans with long-term, fixed-rate debt capital.

There are many moving parts to the economic environment, and the disruptions are resulting in an increase of destabilizing factors: the government shutdown, political instability, the anticipated impact of tariffs and the interest rate markets. Cybersecurity is still a priority, especially with the accelerating expansion of artificial intelligence. The cattle market is extremely elevated, and the price of beef over the counter and on the plate continues to be high. The race to expand the electrical grid is heating up. Nuclear-powered sources are back in the news as an alternative source of electrical power generation.

Educational services

Uncertainty about visa approval rates and H1-B visa fees will have a potentially significant negative impact.

Pipeline transportation

Lower oil prices impact producer activity and uncertainty.

Professional, scientific and technical services

We're seeing significant uncertainty among our oil and gas service company clients. Commodity prices are down, and there is no real cause to anticipate an upturn in drilling activities.

The residential market has continued its decline due to the uncertainty of the economy. Homebuilders are having a difficult time selling homes, even with the incentives they are offering, and existing homes are just sitting. The commercial market is a little better but is being held up by energy and data center transactions. We need a major adjustment in the pricing of homes or a significant reduction in the interest rate to get this market moving again.

Interest rates are still too high. Reduction in regulations is improving optimism. The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act will open new opportunities.

We have seen an upturn in work flowing from clients in October in consulting engineering.

All of our customers are scaling back on technology spending.

I feel like our clients are more apprehensive. We are writing a lot of proposals, but they are just sitting. Projects are still being planned, but the execution is being delayed.

I work globally with international companies, so uncertainty is inherently high, and it will likely increase in the coming months. Four new governments in Latin America will be decided within the next six months, and such political transitions always contribute to greater economic and business uncertainty.

Commodity prices adversely affecting upstream oil and gas companies coupled with potential increased costs from renewed China tariffs creates an uncertain or negative outlook.

We are pitching to more small businesses and nonprofits on our marketing and advertising services than we have since founding the company 14 years ago. More than 80 percent of responses from business owners indicate they are not spending money on marketing and additional items until 2026 because of economic uncertainty.

Trump administration volatility causes clients to stall new purchases.

The industrial sector appears to be gaining momentum.

Tariffs [are an issue impacting our business].

We aren't getting the larger requests that we saw at the end of fourth quarter 2024. That makes me nervous as we work on our 2026 pipeline and prospects.

Publishing industries (except internet)

There is significant inflation in regular goods prices.

We continue to be concerned about compounding effects of tariffs, government shutdown, reduced federal spending, wavering consumer confidence and the levels of credit card usage and delinquency (which we expect to increase), as well as the generally antibusiness policies being championed by Republican lawmakers and the Trump administration.

Real estate

The sentiment we see from apartment residents, owners, vendors, employees and others is neither optimism nor excessive worry. Folks are getting by OK, reallocating spending to compensate for high food prices, and they seem resigned to their fate. Immigration and Customs Enforcement (ICE) continues to terrify immigrants, and they are keeping their heads down. Few people are moving, changing jobs or expecting more. The economy feels like it's in the doldrums, and all the outrageous politics just feels like noise. Our company is doing well enough to throw a couple of big events and make improvements to properties we own. Being conservative, focusing on fundamentals and conserving cash have paid off for us. Others see us doing well, so more prospects are coming our way.

We are always hopeful things are going to move forward and upward. Our goal is to survive the next six months.

Repair and maintenance

We are a naturally seasonal business. Our outlook for the future is bright.

Securities, commodity contracts and other financial investments and related activities

Uncertainty remains uncertain.

I wish we would get clarity on tariffs. We have been slow to sign new clients.

Government shutdown, federal employee firings, tariffs, ICE raids, international turmoil and higher cost of living are creating general business uncertainty and increasing downside risks to our businesses.

Specialty trade contractors

Volatility—including interest rates, stock market fluctuations, geopolitical issues and the government shutdown—is creating poor confidence.

Support activities for transportation

With the current administration taking meaningful action to address foreign labor issues, the outlook for the trucking and logistics industry has improved considerably. The decline faced in recent years has been attributable to violations of federal laws, most notably allowing those not legally authorized and without English proficiency to saturate the market and to violate cabotage restrictions. We are encouraged by the renewed emphasis on enforcement and compliance. As these measures take effect and below-market labor practices are curtailed, American motor carriers will once again be able to begin breaking even and then to profit.

Truck transportation

Our business has died.

And finally, one respondent waxed poetic:

With continued angst over secured overnight financing rate, federal funds rate and prime

Pundits are debating whether “it is different this time.”

Federal Reserve keeps tracking,

but economic data’s still lacking.

Historians will laugh or cry at this rhyme!

Source: Dallas Fed

So, with President Trump doing everything in his powers to bring down the price of oil (and therefore gas), it appears the locals can't take it anymore.

Tyler Durden Tue, 10/28/2025 - 14:05

Cameco, Nuclear Names Soar After US Government Invests $80BN In Nuclear Reactors

Cameco, Nuclear Names Soar After US Government Invests $80BN In Nuclear Reactors

WHAM: White House Asset Management strikes again.

Back in May, immediately after Trump issued his "nuclear" order (a day which was the unofficial start of Trump's new Industrial Policy, and which the president described as a "huge day for the nuclear industry"), we wrote "Trump's "Nuclear" Order And How To Profit" an article meant for our premium subscribers which laid out "All You Need To Know About The Coming Nuclear Energy Transition." The highlight, as premium subs know, was our focus on two primary beneficiaries from the "nuclear opportunity": established Uranium names such as Cameco, and modular reactor names such as Nano Nuclear, Oklo and NuScale.

Specifically, this is what we said, when recapping the stock implications from Trump's nuclear order.

  • Cameco (CCJ/CCO.TO) is set to benefit as a uranium producer, in our view, as increased nuclear generating capacity would increase demand for physical uranium and conversion services as demand for fuel would likely increase. We note this would likely be a longer term tailwind. Additionally, CCJ/CCO.TO has a 49% stake in Westinghouse which we view would be a more immediate winner given Westinghouse's exposure to new reactor builds and operations and services. The Westinghouse segment would likely see an uplift as construction on new nuclear plants begins, if the AP1000 technology is chosen for these new builds.
     
  • Small/Mobile Modula Reactor companies could potentially benefit if there is additional allocations for loan dollars earmarked for SMRs, as well as a push for SMRs to be used for either civilian or defense power applications.

Fast-forward 5 months later to this morning, when our forecast that CCJ would be the first winner from Trump's nuclear Industrial Policy was validated, after Cameco and the Trump admin announced an $80 billion deal with Westinghouse Electric (Cameco owns 49%) to build nuclear reactors, the latest push to meet rising demand for electricity from artificial intelligence.

The strategic partnership, which also involves Brookfield Asset Management and Cameco, aims to deliver on President Trump’s AI ambitions and scale up an industry he sees as vital to competing with China. It will create tens of thousands of jobs, the companies said in a statement on Tuesday.

CCJ announced that the company and Brookfield Asset Management have entered into a partnership with the US Government to accelerate the deployment of Westinghouse's reactor technology across the US. The $80bn commitment is expected to include near-term financing of long lead time items. In a note from Goldman's research team (which turned bullish on the name about a year ago, and roughly 3 years after us) wrote that they "view this partnership as a significant step forward in reinvigorating nuclear supply chains to accelerate deployment of nuclear power deployment in the United States. We reiterate our Buy rating and highlight key takeaways within."

According to the release, each two-unit Westinghouse AP1000 project creates or sustains 45,000 manufacturing and engineering jobs in 43 states, and a national deployment will create more than 100,000 construction jobs, the companies said. In short, this is a huge win-win deal for everyone (except a handful of environmental radicals). 

"The program will cement the United States as one of the world’s nuclear energy powerhouses and increase exports of Westinghouse’s nuclear power generation technology globally," according to the statement.

Some more details from the investment:

Under the new strategic partnership, the US Government will be granted a participation interest (Participation Interest), which, once vested, will entitle it to receive 20% of any cash distributions in excess of US$17.5 billion made by Westinghouse after the granting of the Participation Interest. For the Participation Interest to vest, the US Government must make a final investment decision and enter into definitive agreements to complete the construction of new Westinghouse nuclear reactors in the US with an aggregate value of at least US$80 billion.

Additionally, in recognition of the anticipated acceleration of long-term value creation that the US Government is expected to help unlock by deploying its financial, regulatory, policy and diplomatic tools to support the objectives of the partnership, if, on or prior to January 2029 the Participation Interest has vested, and if the valuation in an initial public offering (IPO) of Westinghouse is expected to be US$30 billion or more at that time, the US Government will be entitled to require an (IPO). Immediately prior to, or in connection with the IPO, the Participation Interest will directly or indirectly convert into a warrant, with a five-year term, to purchase equity securities equivalent to 20% of the public value of the IPO entity at the time of exercise after deducting US$17.5 billion from the public value.

What's the impetus behind this deal? Simple: one look at the chart below will answer it - see if you can spot the odd one out.

Of course, this is just the start: back in March 2024, when the autopen formerly known as Joe Biden was still in the White House (and when we were pitching the Power-Up America trade which has soared in the past 18 months, blowing away even AI stock returns) we said to go all in Uranium names ahead of the coming explosion in power demand.

Sure enough, the mainstream media has been slowly catching up, and today BloombergNEF writes that US power consumption from data centers is set to double by 2035, to almost 9% of all demand, and is "causing a rush to build new power stations and secure grid connections. But building new reactors takes several years and some companies, like Google, are looking at reopening shuttered nuclear plants to try to get power quicker."

So as Trump's industiral policy rolls on, the winners are becoming increasingly clear: those who read our May 26 primer how to trade Trump's nuclear policies, and bought CCJ, have doubled their money.

And while we would urge subs to take off at least half of their CCJ long so their position is now risk free, for those wondering who may be next, we suggest you look at the other nuclear components of our Power Up America basket, which among others include such Modular Reactor companies as Nano Nuclear which we are confident will be next on Trump's Industrial Policy checklist.

Tyler Durden Tue, 10/28/2025 - 13:45

Cameco, Nuclear Names Soar After US Government Invests $80BN In Nuclear Reactors

Cameco, Nuclear Names Soar After US Government Invests $80BN In Nuclear Reactors

WHAM: White House Asset Management strikes again.

Back in May, immediately after Trump issued his "nuclear" order (a day which was the unofficial start of Trump's new Industrial Policy, and which the president described as a "huge day for the nuclear industry"), we wrote "Trump's "Nuclear" Order And How To Profit" an article meant for our premium subscribers which laid out "All You Need To Know About The Coming Nuclear Energy Transition." The highlight, as premium subs know, was our focus on two primary beneficiaries from the "nuclear opportunity": established Uranium names such as Cameco, and modular reactor names such as Nano Nuclear, Oklo and NuScale.

Specifically, this is what we said, when recapping the stock implications from Trump's nuclear order.

  • Cameco (CCJ/CCO.TO) is set to benefit as a uranium producer, in our view, as increased nuclear generating capacity would increase demand for physical uranium and conversion services as demand for fuel would likely increase. We note this would likely be a longer term tailwind. Additionally, CCJ/CCO.TO has a 49% stake in Westinghouse which we view would be a more immediate winner given Westinghouse's exposure to new reactor builds and operations and services. The Westinghouse segment would likely see an uplift as construction on new nuclear plants begins, if the AP1000 technology is chosen for these new builds.
     
  • Small/Mobile Modula Reactor companies could potentially benefit if there is additional allocations for loan dollars earmarked for SMRs, as well as a push for SMRs to be used for either civilian or defense power applications.

Fast-forward 5 months later to this morning, when our forecast that CCJ would be the first winner from Trump's nuclear Industrial Policy was validated, after Cameco and the Trump admin announced an $80 billion deal with Westinghouse Electric (Cameco owns 49%) to build nuclear reactors, the latest push to meet rising demand for electricity from artificial intelligence.

The strategic partnership, which also involves Brookfield Asset Management and Cameco, aims to deliver on President Trump’s AI ambitions and scale up an industry he sees as vital to competing with China. It will create tens of thousands of jobs, the companies said in a statement on Tuesday.

CCJ announced that the company and Brookfield Asset Management have entered into a partnership with the US Government to accelerate the deployment of Westinghouse's reactor technology across the US. The $80bn commitment is expected to include near-term financing of long lead time items. In a note from Goldman's research team (which turned bullish on the name about a year ago, and roughly 3 years after us) wrote that they "view this partnership as a significant step forward in reinvigorating nuclear supply chains to accelerate deployment of nuclear power deployment in the United States. We reiterate our Buy rating and highlight key takeaways within."

According to the release, each two-unit Westinghouse AP1000 project creates or sustains 45,000 manufacturing and engineering jobs in 43 states, and a national deployment will create more than 100,000 construction jobs, the companies said. In short, this is a huge win-win deal for everyone (except a handful of environmental radicals). 

"The program will cement the United States as one of the world’s nuclear energy powerhouses and increase exports of Westinghouse’s nuclear power generation technology globally," according to the statement.

Some more details from the investment:

Under the new strategic partnership, the US Government will be granted a participation interest (Participation Interest), which, once vested, will entitle it to receive 20% of any cash distributions in excess of US$17.5 billion made by Westinghouse after the granting of the Participation Interest. For the Participation Interest to vest, the US Government must make a final investment decision and enter into definitive agreements to complete the construction of new Westinghouse nuclear reactors in the US with an aggregate value of at least US$80 billion.

Additionally, in recognition of the anticipated acceleration of long-term value creation that the US Government is expected to help unlock by deploying its financial, regulatory, policy and diplomatic tools to support the objectives of the partnership, if, on or prior to January 2029 the Participation Interest has vested, and if the valuation in an initial public offering (IPO) of Westinghouse is expected to be US$30 billion or more at that time, the US Government will be entitled to require an (IPO). Immediately prior to, or in connection with the IPO, the Participation Interest will directly or indirectly convert into a warrant, with a five-year term, to purchase equity securities equivalent to 20% of the public value of the IPO entity at the time of exercise after deducting US$17.5 billion from the public value.

What's the impetus behind this deal? Simple: one look at the chart below will answer it - see if you can spot the odd one out.

Of course, this is just the start: back in March 2024, when the autopen formerly known as Joe Biden was still in the White House (and when we were pitching the Power-Up America trade which has soared in the past 18 months, blowing away even AI stock returns) we said to go all in Uranium names ahead of the coming explosion in power demand.

Sure enough, the mainstream media has been slowly catching up, and today BloombergNEF writes that US power consumption from data centers is set to double by 2035, to almost 9% of all demand, and is "causing a rush to build new power stations and secure grid connections. But building new reactors takes several years and some companies, like Google, are looking at reopening shuttered nuclear plants to try to get power quicker."

So as Trump's industiral policy rolls on, the winners are becoming increasingly clear: those who read our May 26 primer how to trade Trump's nuclear policies, and bought CCJ, have doubled their money.

And while we would urge subs to take off at least half of their CCJ long so their position is now risk free, for those wondering who may be next, we suggest you look at the other nuclear components of our Power Up America basket, which among others include such Modular Reactor companies as Nano Nuclear which we are confident will be next on Trump's Industrial Policy checklist.

Tyler Durden Tue, 10/28/2025 - 13:45

More Than Half A Million Illegal Immigrants Deported From US: DHS

More Than Half A Million Illegal Immigrants Deported From US: DHS

Authored by Naveen Athrappully via The Epoch Times,

More than 527,000 illegal immigrants have been removed from the United States so far under the Trump administration, the Department of Homeland Security (DHS) said in a statement on Oct. 27.

“The Trump Administration is on pace to shatter historic records and deport nearly 600,000 illegal aliens by the end of President Donald Trump’s first year since returning to office. More than 2 million illegal aliens have left the U.S., including 1.6 million who have voluntarily self-deported and over 527,000 deportations,” DHS Assistant Secretary for Public Affairs Tricia McLaughlin said.

“This is just the beginning. President Trump and Secretary Noem have jumpstarted an agency that was hamstrung and barred from doing its job for the last four years.”

DHS highlighted the CBP Home app, which illegal immigrants can use to notify the federal government of their intention to depart the United States.

The government is currently offering illegal immigrants $1,000 and free flights to self-deport back to their home nations. This gives them a chance to come back legally. Those arrested and deported won’t be able to return to the United States, DHS said.

According to the DHS, law enforcement has been removing the “worst of the worst criminal illegal aliens” from the country, including rapists, murderers, drug dealers, and pedophiles, despite facing opposition from politicians in sanctuary jurisdictions.

Sanctuary jurisdictions are places where local officials refuse to enforce immigration laws or comply with federal immigration authorities. According to an Aug. 8 list from the Department of Justice (DOJ), 12 states and 18 local jurisdictions in the country are currently classified as following such policies.

Meanwhile, DHS and the Immigration and Customs Enforcement’s (ICE) operations against illegal immigrants have faced widespread protests in places such as Portland and Chicago, which are on the DOJ’s sanctuary jurisdiction list.

Currently, ICE has around 129 detention facilities across the United States to house illegal immigrants before presenting them before an immigration judge or removing them from the country.

The Trump administration has also faced legal challenges in court. For instance, President Donald Trump had said he wanted to federalize the National Guard in Oregon to tackle unrest in Portland and protect ICE facilities. On Oct. 24, an appeals court temporarily paused the National Guard deployment in Portland.

“In the face of a historic number of injunctions from activist judges and threats to law enforcement, DHS, ICE, and CBP have not just closed the border, but made historic strides to carry out President Trump’s promise of arresting and deporting illegal aliens who have invaded our country,” McLaughlin said.

“Illegal aliens are hearing our message to leave now or face the consequence: Migrants are now turning back before they even reach our borders. Migration through Panama’s Darien Gap is down 99.99 percent.”

Democrats Launch Investigation

Democratic lawmakers have criticized the illegal immigrant crackdown initiated by the Trump administration.

An Oct. 20 statement from the House Committee on Oversight and Government Reform said Sen. Richard Blumenthal (D-Conn.) and Rep. Robert Garcia (D-Calif.) have launched an investigation into DHS over reports of unlawful detentions of U.S. citizens and immigrants by federal agents.

In a letter to DHS Secretary Kristi Noem, the lawmakers said there have been “reports of excessive, shocking behavior by CBP and ICE agents directed at U.S. citizens.” The letter claimed that more than 170 U.S. citizens had been detained by immigration agents over the previous nine months.

“The impact of these arrests has not been evenly distributed across the country, and cities like Chicago, Portland, Washington, and Los Angeles have been targeted heavily by ICE and CBP. Troublingly, the pattern of U.S. Citizen arrests coincides with an alarming increase in racial profiling—particularly of Latinos,” the letter stated.

The lawmakers demanded that Noem submit certain information to the House Oversight Committee by Nov. 3, including the number of American citizens detained by CBP, ICE, or DHS since Jan. 20.

DHS said in its Oct. 27 statement that 70 percent of arrests made by ICE were of criminal illegal immigrants convicted or charged with a crime in the United States.

In an Oct. 21 post on X, Noem said that more than 480,000 criminal illegal immigrants were arrested in the nine months under the Trump administration.

“What our law enforcement has accomplished for the American people, under President Trump, is nothing short of extraordinary,” she wrote.

“We will continue to fulfill @POTUS Trump’s promise to Make America Safe Again, secure our borders, and protect our people.”

Tyler Durden Tue, 10/28/2025 - 13:45

More Than Half A Million Illegal Immigrants Deported From US: DHS

More Than Half A Million Illegal Immigrants Deported From US: DHS

Authored by Naveen Athrappully via The Epoch Times,

More than 527,000 illegal immigrants have been removed from the United States so far under the Trump administration, the Department of Homeland Security (DHS) said in a statement on Oct. 27.

“The Trump Administration is on pace to shatter historic records and deport nearly 600,000 illegal aliens by the end of President Donald Trump’s first year since returning to office. More than 2 million illegal aliens have left the U.S., including 1.6 million who have voluntarily self-deported and over 527,000 deportations,” DHS Assistant Secretary for Public Affairs Tricia McLaughlin said.

“This is just the beginning. President Trump and Secretary Noem have jumpstarted an agency that was hamstrung and barred from doing its job for the last four years.”

DHS highlighted the CBP Home app, which illegal immigrants can use to notify the federal government of their intention to depart the United States.

The government is currently offering illegal immigrants $1,000 and free flights to self-deport back to their home nations. This gives them a chance to come back legally. Those arrested and deported won’t be able to return to the United States, DHS said.

According to the DHS, law enforcement has been removing the “worst of the worst criminal illegal aliens” from the country, including rapists, murderers, drug dealers, and pedophiles, despite facing opposition from politicians in sanctuary jurisdictions.

Sanctuary jurisdictions are places where local officials refuse to enforce immigration laws or comply with federal immigration authorities. According to an Aug. 8 list from the Department of Justice (DOJ), 12 states and 18 local jurisdictions in the country are currently classified as following such policies.

Meanwhile, DHS and the Immigration and Customs Enforcement’s (ICE) operations against illegal immigrants have faced widespread protests in places such as Portland and Chicago, which are on the DOJ’s sanctuary jurisdiction list.

Currently, ICE has around 129 detention facilities across the United States to house illegal immigrants before presenting them before an immigration judge or removing them from the country.

The Trump administration has also faced legal challenges in court. For instance, President Donald Trump had said he wanted to federalize the National Guard in Oregon to tackle unrest in Portland and protect ICE facilities. On Oct. 24, an appeals court temporarily paused the National Guard deployment in Portland.

“In the face of a historic number of injunctions from activist judges and threats to law enforcement, DHS, ICE, and CBP have not just closed the border, but made historic strides to carry out President Trump’s promise of arresting and deporting illegal aliens who have invaded our country,” McLaughlin said.

“Illegal aliens are hearing our message to leave now or face the consequence: Migrants are now turning back before they even reach our borders. Migration through Panama’s Darien Gap is down 99.99 percent.”

Democrats Launch Investigation

Democratic lawmakers have criticized the illegal immigrant crackdown initiated by the Trump administration.

An Oct. 20 statement from the House Committee on Oversight and Government Reform said Sen. Richard Blumenthal (D-Conn.) and Rep. Robert Garcia (D-Calif.) have launched an investigation into DHS over reports of unlawful detentions of U.S. citizens and immigrants by federal agents.

In a letter to DHS Secretary Kristi Noem, the lawmakers said there have been “reports of excessive, shocking behavior by CBP and ICE agents directed at U.S. citizens.” The letter claimed that more than 170 U.S. citizens had been detained by immigration agents over the previous nine months.

“The impact of these arrests has not been evenly distributed across the country, and cities like Chicago, Portland, Washington, and Los Angeles have been targeted heavily by ICE and CBP. Troublingly, the pattern of U.S. Citizen arrests coincides with an alarming increase in racial profiling—particularly of Latinos,” the letter stated.

The lawmakers demanded that Noem submit certain information to the House Oversight Committee by Nov. 3, including the number of American citizens detained by CBP, ICE, or DHS since Jan. 20.

DHS said in its Oct. 27 statement that 70 percent of arrests made by ICE were of criminal illegal immigrants convicted or charged with a crime in the United States.

In an Oct. 21 post on X, Noem said that more than 480,000 criminal illegal immigrants were arrested in the nine months under the Trump administration.

“What our law enforcement has accomplished for the American people, under President Trump, is nothing short of extraordinary,” she wrote.

“We will continue to fulfill @POTUS Trump’s promise to Make America Safe Again, secure our borders, and protect our people.”

Tyler Durden Tue, 10/28/2025 - 13:45

Mediocre 7Y Auction Tails Most In 14 Months As Foreign Buyers Stay On Sidelines

Mediocre 7Y Auction Tails Most In 14 Months As Foreign Buyers Stay On Sidelines

If yesterday's 5Y auction was stellar, with solid demand across the board including a jump in foreign demand, then today's sale of $44BN in 7Y paper, the week's final coupon auction in an abbreviated schedule ahead of tomorrow's Fed decision, was mediocre at best.

The auction priced at a high yield of 3.790%, down from 3.953% in September and the lowest since Sept 24; it tailed the When Issued 3.782% by 0.8bps, the third tail in a row and the biggest tail since last August.

The bid to cover was 2.457, up from 2.395 which however was a multi-year low; in the context of recent auctions today's btc was subpar, printing below the six auction average at 2.575.

Internals were also mediocre, if better than the dismal September auction: Indirects were awarded 59.0%, up from 56.4%, but below the six-auction average 67.3%. And with Directs dipping to 27.9%, Dealers were left with 13.14%, the highest since April.

Overall, this was a mediocre, forgettable, and very tailing "belly-busting" 7Y auction which is somewhat surprising ahead of tomorrow's Fed decision which is expected to see not only a rate cut but put an end to QT as first noted here two weeks ago. 

Tyler Durden Tue, 10/28/2025 - 13:27

Mediocre 7Y Auction Tails Most In 14 Months As Foreign Buyers Stay On Sidelines

Mediocre 7Y Auction Tails Most In 14 Months As Foreign Buyers Stay On Sidelines

If yesterday's 5Y auction was stellar, with solid demand across the board including a jump in foreign demand, then today's sale of $44BN in 7Y paper, the week's final coupon auction in an abbreviated schedule ahead of tomorrow's Fed decision, was mediocre at best.

The auction priced at a high yield of 3.790%, down from 3.953% in September and the lowest since Sept 24; it tailed the When Issued 3.782% by 0.8bps, the third tail in a row and the biggest tail since last August.

The bid to cover was 2.457, up from 2.395 which however was a multi-year low; in the context of recent auctions today's btc was subpar, printing below the six auction average at 2.575.

Internals were also mediocre, if better than the dismal September auction: Indirects were awarded 59.0%, up from 56.4%, but below the six-auction average 67.3%. And with Directs dipping to 27.9%, Dealers were left with 13.14%, the highest since April.

Overall, this was a mediocre, forgettable, and very tailing "belly-busting" 7Y auction which is somewhat surprising ahead of tomorrow's Fed decision which is expected to see not only a rate cut but put an end to QT as first noted here two weeks ago. 

Tyler Durden Tue, 10/28/2025 - 13:27

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