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Trump Downplays Iran's Attacks Targeting US Bases In Kuwait & Bahrain: 'They Were Slightly Provoked'

Authored by Dave DeCamp via AntiWar.com,

President Trump on Wednesday downplayed Iranian attacks that targeted US bases in Kuwait and Bahrain, saying they may have been "slightly provoked" since the US launched strikes against Iran beforehand.

"There's a reason for everything, and we hit them pretty hard last night," the president told reporters in the Oval Office. "Some people would say they were slightly provoked because we took a strong action for a different reason, so they were reciprocating."

Source: The White House

Iran launched the missile and drone attacks after the US bombed a commercial ship attempting to reach Iran and launched strikes on Iran’s Qeshm island.

During the Iranian attack on Kuwait, a passenger terminal at Kuwait’s international airport was hit, and at least one person was killed, and more than 60 were injured. Local officials said the terminal was hit by Iranian drones, which Iran denied, claiming that it was struck by an errant US Patriot missile interceptor.

Kuwait’s aviation authority later released a video of the strike that appeared to show a drone striking the terminal.

US Central Command denied Iran’s allegation in a statement that came after it claimed that Iranian missiles fired at Kuwait "fell short or broke apart en route" and a second wave of Iranian drones failed to hit their intended targets.

"An additional wave of Iranian drones attempting to attack US forces in Kuwait failed to impact intended targets tonight. US Central Command air defenses successfully downed multiple drones and ensured no American personnel or assets were harmed," CENTCOM said.

Trump on Iran attacking Kuwait:

There is a reason for everything, and we hit them pretty hard... They were slightly provoked; they were reciprocating. pic.twitter.com/VvIgyJHb3m

— Clash Report (@clashreport) June 3, 2026

Despite the casualties at the Kuwait airport, Trump said the Iranian attacks were "not a big deal" and that the US "nipped it in the bud very quickly." When asked if the ceasefire was still in place, he said, "In that part of the world, ‘ceasefire’ is when you’re shooting in a more moderate manner."

Iran’s attacks were its most significant response yet to US violations of the ceasefire, representing a new Iranian strategy to avoid more “tit-for-tat” strikes. Iranian Foreign Minister Abbas Araghchi vowed on Wednesday that Tehran would continue to have a strong response to any US attacks.

"Our Armed Forces are conducting self-defense strikes on sites the US is permitted to use to attack civilian shipping and violate the ceasefire," Araghchi wrote on X in a post that included a video of US Secretary of State Marco Rubio praising the UAE and Kuwait for being cooperative with US military operations.

Kuwait's civil aviation authority released surveillance footage it says is an Iranian drone crashing into its international airport on Wednesday.

Follow live updates on the Iran war: https://t.co/s1XGe7eeW2 pic.twitter.com/5LTFWaj0sX

— ABC News (@ABC) June 4, 2026

"Any hostile act will be met with an immediate, decisive response. What sanctions and war failed to achieve won’t be won with more war," the top Iranian diplomat added.

Tyler Durden Thu, 06/04/2026 - 08:45

Jobless Claims Jump As US Tech Firms Announce Most Job Cuts In 2 Years

The number of Americans filing for unemployment benefits for the first time jumped to its highest in three months last week at 225k (215k exp), but this remains well within the range of the last five years...

Source: Bloomberg

The biggest increase in initial claims came from California while Texas saw the biggest decline...

Continuing Jobless Claims dipped to 1.777 million Americans (remaining below the 1.8mm Maginot Line), just above two year lows...

Source: Bloomberg

However, despite the seemingly solid claims data, outplacement firm Challenger, Gray & Christmas reports that US tech companies in May announced the most job cuts in nearly two years as they ramp up spending on artificial intelligence.

The tech sector said last month it planned to eliminate 38,242 positions, the most since August 2024.

Total private-sector job cut announcements, meanwhile, were down 7% over the past five months versus the same period a year earlier, reinforcing the picture of an ongoing “low-hire, low-fire” environment in most industries.

In May, Artificial Intelligence (AI) led all reasons for job cuts for the third month in a row, with 38,579 announced cuts.

It is the highest monthly total ever recorded for the reason since Challenger began tracking it in 2023, and it accounted for 40% of all cuts announced in May - up from just 7% in January, 25% in March, and 26% in April.

For the year, AI has been cited in 87,714 cuts, or 22% of all 2026 layoffs, already far surpassing the 54,836 attributed to the reason in all of 2025.

“The labor market is being reshaped by technology in real time,” said Andy Challenger, the company’s chief revenue officer.

“AI is now the leading reason companies give for cutting jobs.”

The figures jibe with recent high-profile, AI-related workforce reduction plans announced by companies including Meta Platforms Inc., Intuit Inc. and Cisco Systems Inc. Filings for unemployment insurance, however, haven’t meaningfully increased despite the slew of layoff announcements, which have mostly been targeted at white-collar positions.

On the bright side, through May 2026, U.S. employers have announced 80,472 planned hires, narrowly topping the 79,741 announced at this point in 2025. However, hiring announcements remain historically low by pre-pandemic standards.

Tyler Durden Thu, 06/04/2026 - 08:34

Futures Slide After Broadcom Forecast Miss Chills Tech Euphoria

US equity futures are weaker, dragged lower by Tech after a disappointing outlook from Broadcom triggered doubts that the blistering rally in technology shares had gone too far, a move exacerbated by euphoric positioning. As of 8:00am ET, S&P futures dropped 0.4%, while Nasdaq futures slumped 1.2%. Broadcom, which added around $150 billion in market value just this week, slumped 13% in US premarket trading after its forecast for artificial-intelligence semiconductor revenue in the current quarter fell short of expectations. CrowdStrike shares also drop 10% after their revenue projection failed to impress investors. Semis are under pressure following AVGO’s earnings, while Mag7 are bid led by AAPL (+1%). Parts of Cyclicals and Defensives are bid as portions of the AI Theme are weaker pointing to a potential de-risking or the very early stages a rotation. Given the sell off in APAC and EU bid, it appears to be the former rather than the latter. Bond yields are lower as the curve bull steepens, and USD weakens.  Commodities are lower as Energy sells-off on news that Israel / Lebanon will resume their conditional ceasefire within 24 hours (although Hezbollah was notably not mentioned); but, precious metals are a notable outperformer. Today’s macro data focus is on Challenge Job Cuts, Initial Claims, and Continuing Claims, with NFP coming tomorrow. 

In premarket trading, Mag 7 stocks are mixed (Microsoft +0.8%, Amazon +1.1%, Apple +1%, Alphabet +0.4%, Nvidia -1%, Meta Platforms -0.7%, Tesla -0.8%. 

• Broadcom (AVGO) is down 14% after the chipmaker gave an outlook that was seen as underwhelming, given the industry’s AI-related demand. Analysts note that AI sales and margins for the current quarter are weaker than expected. AI-linked companies fall after Broadcom’s outlook for AI chip revenue failed to impress investors. Decliners include Intel (INTC), which is down about 4%, and Lumentum (LITE), which is falling 3%.
• Cryptocurrency-linked stocks fall as Bitcoin extended losses for a fifth consecutive session after renewed clashes in the Middle East weighed on market sentiment.
• Ciena (CIEN) falls 5% after the maker of equipment used by telecom companies posted quarterly results.
• CrowdStrike (CRWD) falls 10% as the security software company’s first-quarter beat wasn’t strong enough to lift the stock that has more than doubled from a March low.
• Five Below (FIVE) falls 10% after the retailer reported results, and while the quarter was a “standout,” the growth rate might be peaking, according to Jefferies.
• Netskope (NTSK) tumbles 19% after the cloud security firm reported an adjusted loss of 6 cents per share in the first quarter.
• Petco (WOOF) falls 12% after the pet health and wellness company’s adjusted Ebitda forecast for the second quarter came in below the average analyst estimate.
• PVH (PVH) slides 22% after reaffirmed adjusted earnings-per-share guidance from the owner of the Calvin Klein and Tommy Hilfiger brands missed consensus estimates. Analysts note sustained pressures from the Middle East conflict.
• UnitedHealth (UNH) rises 2% after BofA Global Research upgraded the health insurer to buy, citing improving medical cost trends.

In other corporate news, Eli Lilly and BioNTech joined a growing chorus of drugmakers warning that proposed healthcare reforms in Germany risk undermining investment in Europe’s biggest economy. Some members of the billionaire Glazer family have been debating whether to sell their stake in Manchester United FC, after more than 20 years of ownership.  Netflix is using AI to help customers cut through the noise of content overload. In other news, Alphabet upsized its equity raise to $84.75 billion from the $80 billion it announced just two days earlier. Mike O’Rourke at Jonestrading said a recent Alphabet investor presentation “sounds like bragging about plans to spend beyond free cash flow generation.” He questioned what he called “a bold spending stance at such an early juncture” in the competitive industry. Elsewhere, SpaceX is seeking to raise $75 billion in a record IPO to fund expansion of its AI, rocket launch and satellite infrastructure. Based on the SEC filing, it would have a market value of almost $1.77 trillion. 

Broadcom reminded upside-chasing investors that risk still exists in markets, with its shares tanking 12% in premarket trading after it issued a disappointing forecast for full-year sales of its AI chips. Still, if the stock opens at similar levels in the cash market, it’ll only be back to where it was trading last Thursday. Those earnings followed weeks of “great-to-amazing results from its competitors and partners, which meant the bar was extremely high (some would say impossibly high),” notes Vital Knowledge founder Adam Crisafulli. The stock had soared 65% from its 2026 trough on March 30, making it the third-biggest point contributor to the S&P 500’s 20% surge.

The downturn extended to other corners of the tech trade, with cybersecurity firm Crowdstrike Holdings Inc. dropping 10% even after raising its revenue forecast. The sector also fueled losses in Asia, where South Korea’s Kospi index fell 1.8% while the Korean Won tumbled to the lowest since 2009. Europe’s benchmark was down 0.2%. 

Tech and AI will remain in focus for traders: earnings are due from Ciena premarket and AI pioneers are due to speak at Bloomberg Tech — while TSMC reminds us that chip supply won’t meet AI-fueled demand for years. Chipmaker Cerebras Systems said it plans to cooperate with a wide variety of suppliers of AI data center components, except Nvidia. 

Concern over the AI trade threatens to dent a record-breaking rally that has seen global gauges shake off worries about the biggest disruption to oil markets in history. The risk-off tone comes even as Brent heads for its first daily retreat of the week, trading 1.4% lower at about $96.40 a barrel.

“Valuations are looking slightly frothy in pockets of the market which have seen the strongest gains over recent weeks,” said Wolf von Rotberg, equity strategist at Bank J Safra Sarasin. “A leadership change in equities is not unlikely at this point, with less powerful drivers than tech taking over.”

In hedge fund news, D.E. Shaw is extending the time it will take investors to fully exit two of its biggest hedge funds, as it joins peers such as Millennium and Citadel in seeking to keep client cash for longer.

In politics, the Republican-led House voted to halt the US war with Iran, breaking with President Donald Trump on an unpopular conflict. Trump announced that he planned to soon make Todd Blanche “permanent attorney general” months after he assumed that post in an acting capacity. 

European stocks have fared better as oil prices retreat, with the Stoxx 600 little changed. The Stoxx 600 was up 0.2%, led by consumer stocks which were boosted by positive earnings from Remy Cointreau. The artificial intelligence trade took a breather following a disappointing outlook from Broadcom. Here are the biggest movers Thursday:

• Remy Cointreau shares rose as much as 15%, the most since January 2024, after the French alcoholic drink maker reported earnings that slightly beat consensus profit expectations
• CMC Markets shares rose as much as 18% to highest since August 2021, after the online trading platform guided to stronger-than-expected FY27 revenue and highlighted accelerating growth across its partnerships and institutional businesses
• Abivax shares climbed as much as 14% in Paris, extending a rally after the stock plunged due to cancer cases in a crucial clinical trial
• Puuilo shares rose as much as 6.3%, the most since March, after DNB Carnegie predicted that upcoming first-quarter earnings would show the Finnish retail group started the year on a “solid footing,” helped by improving consumption
• Partners Group shares rose as much as 1.8%, attempting to recover from the previous day’s record 16% drop that was triggered by the Swiss investment firm’s decision to cap withdrawals from one of its private equity funds
• Universal Music shares fell as much as 7.6% on Thursday morning to €17.74 after Bill Ackman sold his €1.42 billion ($1.65 billion) stake in the record label just days after the Amsterdam-listed company rejected a takeover bid by the hedge fund billionaire
• Tech hardware stocks in Europe fall on Thursday and pare their year-to-date gains after US-listed Broadcom gave an outlook for artificial intelligence revenue that missed more bullish expectations
• Pirelli shares declined as much as 13% as Grizzly Research said it’s short the Italian tire maker, citing concerns regarding the company’s exposure to Russia
• Burckhardt Compression shares fell as much as 13%, the largest daily drop in over six years, after the Swiss industrial manufacturer’s full-year results showed a significant drop in order intake
• Intrum fell as much as 19%, the most in a month, after the Swedish credit management firm announced the terms of its SEK7.5 billion capital raise

Asian stocks are poised to snap a four-day winning streak as the artificial intelligence rally that drove a regional benchmark to record highs lost steam, following Broadcom’s underwhelming forecast. The MSCI Asia Pacific Index fell as much as 1.8%, on pace for its worst day since May 15. Chip-related companies including Samsung, SK Hynix and TSMC were among the biggest drags. Most markets in the region slipped, led by South Korea, Indonesia and Taiwan.  The blistering rally in Asian chip stocks has left them exposed to any doubts about the durability of the AI boom. Broadcom’s weaker-than-expected guidance rattled investor confidence, sparking declines in shares that had benefited from high expectations for sustained tech hardware spending.

In FX, the Swedish krona is the best performing G-10 currency, rising 0.6% against the greenback after CPI surprised to the upside. The South Korean won fell to the lowest since 2009 even as the government pledged to curb excessive volatility.

In rates, treasuries trade near session highs in early US session, with modest gains led by front-end tenors amid oil price declines. Yields in 2-year sector yields are nearly 4bp lower on the day.  Treasuries outperform bunds and gilts, with Bank of England Governor slated to speak at 11:40am New York time.US yields are 1bp to 3bp richer across a steeper curve, leaving 5s30s spread 2bp wider on the day near session highs; 10-year near 4.47% is 2bp lower, outperforming bunds and gilts in the sector by more than 1bp

In commodities, WTI crude oil futures are down more than 2% following three straight increases; Washington and Tehran have a framework to extend a truce agreement by two months, reopening the Strait of Hormuz, but an agreement hasn’t been reached and sporadic attacks have resumed.Oil prices and yields extended declines in early US trading after US President Donald Trump said negotiations to end the war in Iran were in final stages, repeating a comment he’s made at least twice since mid-May. Precious metals advance while Bitcoin falls to the lowest since before the Iran war began. 

US economic data calendar includes 1Q final productivity and unit labor costs and weekly jobless claims (8:30am). Fed speaker slate includes Barkin (8:30am), Bowman (10am), Daly (11:40am, 1:10pm) and Schmid (1pm)

Market Snapshot

Top Overnight News

• An informed source to Al Arabiya said the agreement on the release of frozen Iranian funds in its final stages, but the search continues for a mechanism on frozen funds. However, US President Trump informed the mediators of his refusal to release funds to Iran before signing the agreement.
• Israel and Lebanon agreed to a ceasefire in US-brokered talks, with the ceasefire contingent on Hezbollah's evacuation from the Litani. Despite this, there have been reports of continuing attacks in Southern Lebanon.
• House backed a resolution curbing Trump's Iran war powers with the House voting 215 to 208 to pass the War Powers resolution.
• Nasdaq Futures Tumble as Broadcom Tests AI Trade: BBG
• SpaceX Seeks $75 Billion in Record IPO to Fund AI, Launch: BBG
• Challenger Job Cuts (May) 97.006K (Prev. 83.387K); May Job Cuts Rise 16% from April, the highest May total since 2020.
• Trump is to announce nearly USD 700mln in coal support and to use the Defence Production Act for the coal sector: Axios.
• Trump Says He Plans to Make Blanche ‘Permanent Attorney General’: WSJ
• Agricultural Secretary Rollins announced additional USDA personnel deployment to South Texas, and urged livestock producers to remain vigilant, while she stated that potential New World screwworm detection is being fully contained and is not a harm to US food supply or safety.

Iran War News

• US President Trump said they have been hitting Iran pretty hard and Iran negotiations are going well, while he suggested a deal could happen over the weekend and said anything can happen when you are dealing with Iran, but also stated it could go another two or three weeks. Trump also stated he would rather not use the military in Iran, and would rather not wipe Iran out, as well as noted that they are close to signing papers in theory. Furthermore, Trump said they are trying to separate Iran and Lebanon issues, while he responded that in that part of the world, a ceasefire is when you're shooting in a more moderate manner, when questioned about the ceasefire.
• US President Trump told aides privately that he would consider ending the ceasefire with Iran if US troops are killed, according to WSJ.
• An informed source to Al Arabiya said the agreement on the release of frozen Iranian funds in its final stages but the search continues for a mechanism on frozen funds. US President Trump informed the mediators of his refusal to release funds to Iran before signing the agreement. The source notes that the main obstacle relates to the mechanism for disposing of part of the frozen Iranian funds and there is a proposal to create a special fund for depositing frozen Iranian funds that is under discussion.
• Sources noted that the first phase of the interim agreement between the US and Iran involves cessation of direct military operations, phase 2 is a full reopening of maritime traffic, phase 3 includes limited easing of some sanctions and phase 4 includes major issues such as the Iranian nuclear program, according to Al Hadath.
• Pakistani Foreign Minister, on reports of halted US-Iran talks, said "Our dialogue process continues”, Pakistani journalist Mallick posted.
• Israel and Lebanon agreed to a ceasefire in US-brokered talks, with the ceasefire contingent on Hezbollah's evacuation from the Litani, while Lebanese armed forces will take control of pilot zones, and Israel and Lebanon agreed to reconvene negotiations in the week of 22nd June.
• US State Department confirmed Israel and Lebanon agreed to the implementation of a ceasefire and that the sides agreed with guidance of the US to swiftly advance creation of pilot zones in which Lebanese armed forces will take exclusive control of the territory. Israel and Lebanon also reaffirmed they have no hostile intent towards one another and are committed to continuing negotiations.
• Lebanese President said the implementation of the ceasefire could begin within 24 hours of final approval, Arab News reported.
• The Israeli army has begun withdrawing its forces from Dibbin in southern Lebanon, Al Hadath reported.
• Israeli Defence Minister said the IDF will continue its operations on the ground in Lebanon at this stage, Al Hadath reported. "The Lebanese will not return to the south and we will continue to destroy infrastructure."
• Israeli military said fighting in Southern Lebanon continues.
• Israeli airstrikes were reported in several areas in southern Lebanon, according to SNN.
• Hezbollah attacked Israeli positions in southern Lebanon.

A more detailed look at global markets courtesy of Newsquawk

APAC stocks were lower following the negative handover from the US, where risk sentiment was weighed on by the recent retaliatory attacks between the US and Iran, as well as weakness in tech stocks. ASX 200 was pressured by underperformance in the mining and materials industries, while most sectors were subdued aside from the resilience in defensives. Nikkei 225 retreated from record levels and briefly tested the 67,000 level to the downside amid intervention risks following FX comments from Japanese PM Takaichi, while comments from BoJ Governor Ueda signalled the central bank could resume rate normalisation this month. On that front, hawkish BoJ sources noted the central bank is to mull a hike this month, with another possible in 2026. Hang Seng and Shanghai Comp conformed to the downbeat mood amid tech-related headwinds and with the PBoC refraining from open market operations for a second consecutive day.

Top Asian News

• Australian Balance of Trade (Apr) 1.791B vs. Exp. -1.61B (Prev. -1.841B).
• Australian Imports MoM (Apr) M/M 0.8% (Prev. 14.1%).
• Australian Exports MoM (Apr) M/M 7.2% (Prev. -2.7%).

European bourses (STOXX 600 +0.1%) started the European morning on a positive footing, as markets digested positive geopolitical updates from President Trump and a Lebanon-Israel ceasefire. However, markets have since soured amidst reports that Israel were conducting operations in Lebanon, and following the negative action seen across the pond. European sectors are mixed. Retail (+1.7%) continues to gain following the earnings by Inditex on Wednesday. Consumer Products & Services (+1.7%) and Travel & Leisure (+1.2%) round out the top 3. The laggards include Telecoms (-1.6%), Media (-1.6%) and Basic Resources (-1.1%).

Top European News

• UK PM Starmer is considering watering down plans to boost defence spending by GBP 18bln over concerns that they are unaffordable, according to The Times.

FX

• The Buck is lower this morning vs initially starting the European morning flat. Not really any geopolitical market-moving headlines overnight; however, the Buck was pushed lower after hawkish BoJ sources (see below). In terms of Fed speak since the close, Williams said he sees no obvious direction for rates and no reason to change them. Logan said higher rates could be needed later this year. Ahead, Daly, Bowman & Barkin are slated to speak.
• JPY is slightly firmer and trading in line with most G10s. Sources told Bloomberg and Reuters that the BoJ would raise rates at the June meeting, with the Bloomberg piece suggesting more tightening was possible in 2026. Markets assign 20bps of tightening in June (80% probability), with an additional 20bps implied by year-end. The BBG report saw a 35-pip move lower in USD/JPY over ten minutes, which ultimately proved fleeting, with Yen fundamentals remaining bearish and two hikes close to being fully priced this year. A strategist at SMBC Nikko Securities said: “Even if the BoJ raises rates in June, any rebound in the yen will be limited”. USD/JPY trades higher by 0.1%, a touch below the 160.00 mark.
• CHF is performing well against the Euro and Buck after CPI metrics from Switzerland. Although a cooler-than-expected report is unlikely to shift the dial for policymakers at the SNB. This is because the headline remains towards the lower half of the 0-2% target band, and the SNB continues to make clear that inflation meets its medium-term stability objective. As such, policy is expected to remain at the ZLB for the foreseeable future. EUR/CHF -0.1% at 0.9181, USDCHF -0.3% at 0.7896.

Central Banks

• Fed's Logan (2026 voter) said she is increasingly concerned higher interest rates could be necessary later this year and monetary policy is not restraining the economy, while she added that inflation is taking too long to return to 2%, economic activity remains strong and corporate earnings are 'going gangbusters'. Logan said financial conditions are accommodative, and the labour market is stable, but separately noted that the higher price of gas is feeding through to prices of other goods and services. Furthermore, she stated that mildly restrictive policy is needed and that the current monetary policy looks neutral or loose.
• RBA Governor Bullock said the RBA expects inflation to increase further in the near term and notes flow of data and development since May has not been materially different to our expectations. She notes that inflation is too high, and the board will do what it considers necessary to achieve its mandate of delivering price stability and full employment. Some signs of tightening impact already seen, but full effects to take 1 to 2 years.
• BoJ is said to mull a June rate hike with another possible in 2026 and sees less need to cut bond buys at the same pace in FY27, according to Bloomberg source reported. Reuters then corroborated this report.

Fixed Income

• Global fixed benchmarks are mixed as energy prices cool a touch after President Trump said Iran negotiations are going well, while he suggested a deal could happen over the weekend. Though noted that it could go another two or three weeks. Separately, reports suggest that Israel and Lebanon agreed to a ceasefire, though recent reports have suggested that the Israeli army is continuing its operations in the region. This uncertainty has led to the tentative action across fixed paper this morning.
• USTs (+4 ticks) are slightly firmer and trade within a narrow 109-12+ to 109-19+ range. Really not much driving the action this morning aside from geopolitics, but domestic data will likely garner some attention later. To recap, ISM Manufacturing & Services indicate a solid activity picture, with labour market reports (ADP/JOLTS) also pushing back on near-term rate cut expectations. Ahead, focus will be on: Jobless Claims (May/30), Revelio PLS (May), and Chicago Fed Labor Market Indicators Final (May).
• JGBs (-20 ticks) are on the back foot this morning for two key reasons: a) hawkish BoJ reports, b) an enhanced-liquidity auction. Delving into the report, Bloomberg first reported that the BoJ is mulling a hike in June, and potentially one more this year. Moreover, a source said that the Bank sees less need to pare back its bond purchasing plans. This was later corroborated by a Reuters piece, where a source said, “Unless there's a severe escalation in the conflict, the BOJ will probably hike rates in June”. Before the sources piece, markets already expected the Bank to hike in June; therefore, the pressure in JGBs this morning stems from comments related to the plans later in the year.
• Bunds and Gilts follow the tentative action seen in USTs, but are lower by a handful of ticks. Domestic updates for EZ have been lacking this morning, but traders will eye Retail Sales. Irrespective of the report, the ECB is set to hike at the June meeting – money markets assign a 96% chance of such a decision; another hike is then priced in for October.
• France sells EUR 13.998bln vs exp. EUR 12-14bln 3.70% 2036, 4.00% 2038, 3.60% 2042, 4.40% 2057 OAT.
• Spain sells EUR 4.973bln vs exp. EUR 4.5-5.5bln 2.35% 2029, 3.10% 2031 and 3.50% 2041 Bono and EUR 0.593bln vs exp. EUR 0.25-0.75bln 2.05% 2039 I/L Bono.

Commodities

• Crude markets are on a softer footing amid ongoing mediation efforts to broker some sort of US-Iran deal following two flare-ups earlier this week. In terms of the major updates, US President Trump said negotiations with Iran were progressing and suggested a deal could come within days, although talks could also continue for several more weeks. Meanwhile, US Secretary of State Rubio said the US is awaiting Iran’s final sign-off on negotiations surrounding Tehran’s nuclear programme. On the other side, Iranian officials outlined a four-stage framework for a potential agreement with the US. The four-stage proposal for a deal with the US includes: 1) Ending the war, 2) tangible measures re. the Strait, 3) sanctions and nuclear issues, 4) the establishment of a supervisory committee. More recently, Al Arabiya reported that the agreement on the release of frozen Iranian funds is in its final stages, albeit the search continues for a mechanism for frozen funds. The sources added that Trump informed the mediators of his refusal to release funds to Iran before signing the agreement. Elsewhere, Israel and Lebanon agreed to implement a US-brokered ceasefire framework and continue negotiations, although since the ceasefire, Hezbollah and IDF continued to exchange fire in the south of Lebanon.
• WTI Jul and Brent Aug futures are subdued in USD 94.06-95.91/bbl and USD 95.61-97.44/bbl ranges, respectively, at the time of writing, with fleeting downside seen on the aforementioned Al Arabiya sources. Dutch TTF ekes mild gains (+0.2%) but trades choppy on either side of EUR 49/MWh. “Positioning data for TTF continues to show that investment funds have been somewhat unfazed by ongoing LNG supply disruptions in the Middle East amid optimism over a resumption of LNG flows through the Strait of Hormuz”, analysts at ING write.
• Spot gold and silver are firmer after yesterday's losses, with the yellow metal finding support this morning at its 200 DMA (USD 4,423/oz) before rebounding to trade in a current USD 4,423-4,484/oz range. Spot silver trades in a USD 72.45-73.91/oz range, still some way off yesterday’s peak at USD 75.33/oz.
• Base metals are mostly lower amid the broader cautious risk tone. 3M LME copper ekes mild gains but remains under USD 14,000/t in a USD 13,701.13- 13,849.00/t at the time of writing.
• Russian Deputy PM Novak said Russia expects to reach its OPEC+ oil production quota this year. The oil market has not yet fully seen the consequences of the Middle East conflict, and stockpiles are being used. There has been no oil production lower than the start of the year due to “unscheduled maintenance” at refineries.
• Russian Deputy PM Novak said OPEC+ countries do not plan to share the UAE's oil output quota.
• Russia's Investment Fund Head Dmitriev said the EU is already going to make a number of concessions to Russia on energy as they need this for survival, TASS reported.
• China to lower retail gasoline prices by CNY 525 per metric ton from June 5th.

US Event Calendar

• 8:30 am: May 30 Initial Jobless Claims, est. 215k, prior 215k
  8:30 am: May 23 Continuing Claims, est. 1780k, prior 1786k
• 8:30 am: Fed’s Barkin in Fireside Chat
• 10:00 am: Fed’s Bowman Testifies Before House Financial Services Committ
• 11:40 am: Fed’s Daly Appears on Bloomberg TV
• 1:00 pm: Fed’s Schmid Speaks in Fireside Chat
• 1:10 pm: Fed’s Daly at Bloomberg Technology Summit

DB's Jim Reid concludes the overnight wrap

The geopolitical headlines have become slightly more positive this morning, with oil prices falling back after the US said that Israel and Lebanon agreed to a ceasefire. That ceasefire is conditional on Hezbollah also stopping fighting, but in theory, the news helps to take out a key sticking point in the US-Iran talks that was holding up a deal. So that’s seen oil prices reverse a run of three consecutive gains, with Brent crude down -0.96% to $96.87/bbl. And given the news, the 10yr Treasury yield (-1.4bps) has also fallen back to 4.48%.

Nevertheless, even as the geopolitical news looks more positive, equities have taken a hit this morning after Broadcom’s forecast for AI chip revenue was beneath estimates, which pushed their share price down over -13% in overnight trading. Those concerns around AI have extended more broadly too, with S&P 500 futures down -0.37% this morning. And in Asia overnight, all the major indices have lost ground, including the Nikkei (-1.73%), the KOSPI (-1.17%), the Hang Seng (-1.39%), the CSI 300 (-0.58%) and the Shanghai Comp (-0.43%). Moreover, there’s been a broader slide in risk assets, with Bitcoin at a 3-month low this morning of $64,593.

Before that, markets had already struggled yesterday, as growing doubt about a US-Iran peace deal pushed Brent crude (+1.89%) up for a third consecutive session, closing at $97.81/bbl. And with the Strait of Hormuz still blocked and no clear sign of a resolution, there were even mounting expectations about a potential Fed rate hike this year, with market pricing for that up to 81% by the close. So that pushed bond yields higher, with a fresh dose of momentum from another round of strong US data, which added to the rate hike speculation. So it was a tough day all round, with the S&P 500 (-0.74%) finally ending a run of 9 consecutive gains, whilst the 10yr Treasury yield (+5.1bps) was back up to 4.49%.

In terms of the Middle East, events there were still dominating the market agenda, with few obvious signs that a peace deal was imminent. For instance, as we went to press yesterday, Bahrain said they’d intercepted three missiles and several drones, whilst Kuwait had to suspend air traffic briefly after an Iranian attack. Meanwhile, Iran’s foreign minister Abbas Araghchi posted that “Any hostile act will be met with an immediate, decisive response” and also said that “no tangible progress” had been made in talks with the US.

There was little clarity from Trump himself, who said the negotiations could complete over the weekend but could go on another two, three weeks. So tensions seemed to be ratcheting up again, and hopes for a durable peace deal continued to decline. Meanwhile, CNN reported yesterday that one of the key sticking points was monetary compensation for Iran. Otherwise, the US House of Representatives did vote against the Iran war in a 215-208 vote yesterday, after four Republicans joined with the Democrats. But in practice that won’t end the military conflict, as the Senate would also need to pass it, and Trump could issue a veto as well.

That backdrop meant that oil prices posted a fresh increase yesterday, with Brent crude up +1.89% to $97.81/bbl. Indeed, we can see from the Polymarket odds that there’s growing scepticism about a return to normality in the Strait of Hormuz. For instance, the probability of a return to normal traffic by the end of July was down to 34% yesterday, having been 39% the previous day. And it was clear investors were pricing the longer conflict scenarios as well, with the 6-month Brent crude future (+1.07%) up to $86.91/bbl.

With oil prices rising again, that led to a renewed bout of concerns around inflation on both sides of the Atlantic. For instance, the US 1yr inflation swap (+6.8bps) was back up to 3.18%, whilst the Euro 1yr inflation swap (+6.5bps) was up to 3.05%. So that led to a fresh round of pressure on sovereign bonds, with the 10yr Treasury yield (+5.2bps) up to 4.50%, whilst yields on 10yr bunds (+6.0bps), OATs (+7.7ps) and BTPs (+8.5bps) saw even bigger increases.

The rise in bond yields got even more momentum from another strong batch of US data, which added to expectations of a Fed rate hike this year. For example, the ISM services index rose by more than expected in May, up to 54.5 (vs. 53.8 expected). Moreover, we also had the ADP’s report of private payrolls, before the US jobs report tomorrow. That ADP release pointed to a robust labour market in May, with private payrolls up by a 16-month high of +122k (vs. +120k expected).

With that data in hand, the probability of a Fed rate hike by December was up to 81% at the close, up from 71% the previous day. And similarly in Europe, the number of ECB hikes priced by December was up to 68bps, up from 65bps the previous day. Meanwhile in Japan, markets have also priced in a growing chance of a rate hike, as BoJ Governor Ueda signalled in a speech yesterday that it may need to be considered. For instance, he said that if “upside risks to prices outweigh downside risks to economic activity, it will be necessary to thoroughly discuss the pros and cons of raising the policy interest rate”.

That combination of negative geopolitical headlines and more hawkish rates pricing meant US equities finally stumbled after a long run of gains. So the S&P 500 (-0.74%) and the NASDAQ (-0.89%) both fell back after 9 consecutive moves higher. The declines were fairly broad, with the equal-weighted S&P 500 (-0.42%) also seeing a decent pull back. But it was the Magnificent 7 (-1.25%) that saw a particular underperformance, dragging US equities more broadly, even as the Philly Semiconductor index (+1.39%) reached another record high.

Over in Europe, there were more broad-based equity declines, with the STOXX 600 (-0.66%) falling back, alongside losses for the DAX (-1.31%), the CAC 40 (-0.71%) and the FTSE MIB (-1.07%). But as in the US, the latest data also pointed in a slightly better direction than expected. So the final composite PMI for the Euro Area was revised up a point from the flash reading to 48.5. Admittedly, that was still beneath the 50-mark separating expansion from contraction, but it suggested the economy wasn’t deteriorating as rapidly as previously thought given the energy shock. Peter Sidorov published his latest global PMI monitor yesterday, where the data shows the global economy adapting to the energy shock, albeit with some signs of rising employment risks.

Looking at the day ahead now, data releases include the May construction PMIs for Germany and the UK, along with Euro Area retail sales for April, and the US weekly initial jobless claims. Otherwise, central bank speakers include ECB President Lagarde, BoE Governor Bailey, and the Fed’s Barkin, Bowman and Daly.

Tyler Durden Thu, 06/04/2026 - 08:23

Five Below Plunges After Earnings Beat, Warns Consumer Boost From Tax Refunds Is Ending

Five Below's core customer base is tweens, teens, and value-conscious households. That makes management's warning on Wednesday's earnings call particularly notable: the retailer is directly exposed to trends in low-end discretionary spending.

"We're looking at the world that our customers are living in: with rising fuel costs, with very sticky inflation, with a somewhat—soft labor market. And we think a piece of that pain that they are feeling wasn't felt in the first quarter purely because of tax proceeds," CFO Daniel Sullivan told analysts during an earnings call.

"We remain cautious with respect to the macro environment, consumer sentiment and buying behaviors," Sullivan added.

Shares of Five Below plunged 10% in premarket trading after the discount retailer issued a dismal outlook for the consumer this summer, despite beating first-quarter earnings expectations and raising full-year profit guidance.

Same-store sales surged nearly 23%, exceeding the Bloomberg Consensus estimate of 17.8%, which was mostly helped by viral demand for a "squishy dumpling" toy.

Snapshot of the first quarter results (courtesy of Bloomberg):

• Net sales $1.29 billion, +32% y/y, estimate $1.22 billion

• Adjusted EPS $2.22, estimate $1.75

• EPS $2.21 vs. 75c y/y

• Comparable sales +22.7%, estimate +17.8%

• Total stores 1,970, estimate 1,967

• Net new stores opened 49, estimate 45.94

Five Below also raised its full-year adjusted EPS forecast to $8.65 to $9.05 from $7.74 to $8.25. The Bloomberg Consensus estimate was $8.30. It kept its second-half outlook unchanged, citing deteriorating consumer sentiment amid a very challenging macroeconomic environment as the tax-refund sugar high fades.

Snapshot of full-year forecast (courtesy of Bloomberg):

• Sees net sales $5.40 billion to $5.48 billion, saw $5.20 billion to $5.30 billion, estimate $5.37 billion (Bloomberg Consensus)

• Sees adjusted EPS $8.65 to $9.05, saw $7.74 to $8.25, estimate $8.30

• Sees EPS $8.62 to $9.02, saw $7.69 to $8.20

• Sees comparable sales +6% to +8%, estimate +5.95%

• Sees net income $480 million to $502 million, saw $429 million to $457 million, estimates $455.3 million

Five Below's concerns about consumers this summer come as working-class families face a cash crunch in the coming months, with Trump-era tax refund tailwinds fading and Iran-related fuel shocks squeezing budgets.

Tax refunds averaging nearly $3,500 have largely helped keep spending resilient, with Walmart, Target, and Lowe's citing refund-driven support in recent earnings calls.

But some retailers warn that the tax refund boost is only temporary. Target said the tax refund benefit will fade in the back half of the year, while Advance Auto Parts expects sales to slow as the refund tailwind disappears.

Low-cost retailers such as Dollar General and Dollar Tree have reported stronger quarterly earnings as they see trading down from wealthier households seeking discounted items.

"They're literally running out of money at the end of the month," Kraft Heinz CEO Steve Cahillane said in a recent interview with the WSJ. "We're seeing negative cash flows in the lower-income brackets where they're dipping into savings."

Earlier this month, we showed that personal spending growth far outpaced personal income.

... the personal savings rate has collapsed to a 3-year low.

Read UBS analyst Mark Paski's note from last week, which warned about a potential "fiscal cliff" for consumers in the second half of 2026, as excess cash buffers from refunds begin to fade.

Tyler Durden Thu, 06/04/2026 - 07:45

Constellation's Three Mile Island Nuclear Restart Gets Boost With FERC Waiver

By Ethan Howland of UtilityDive

Constellation Energy’s plans to restart the Crane nuclear power plant - formerly, and better known as Three Mile Island Unit 1 - were boosted Monday when the Federal Energy Regulatory Commission approved a waiver for the company from PJM Interconnection rules. FERC approved Constellation’s waiver request over the objections of PJM’s independent market monitor.

Under the decision, Constellation will be able to transfer 760 MW of Capacity Interconnection Rights, or CIRs, from its Eddystone power plant near Philadelphia to the Crane unit. The transfer will increase the amount of electricity the nuclear unit can deliver to the grid.

Constellation Energy’s Three Mile Island nuclear power plant near Middletown, Pa. The company’s plans to restart the plant’s Unit 1 were boosted when the Federal Energy Regulatory Commission approved a waiver for the company from PJM Interconnection rules on June 1, 2026.

Constellation planned to retire two Eddystone units on May 31, 2025, but the Department of Energy has ordered the company to them to keep running under what the DOE has described as an emergency energy shortage.

Under the DOE’s orders, the Eddystone units are not considered capacity resources, making their CIRs free to be transferred, according to Baltimore-based Constellation.

Constellation’s $1.6 billion plan to restart the 835-MW Crane nuclear unit hit a snag when PJM determined that transmission upgrades were needed to safely deliver all the unit’s power to the grid.

Those upgrades — including 765-kV and 500-kV projects — aren’t expected to be finished until December 2030 and could be delayed even longer, preventing full deliveries from the nuclear unit, which could restart in the second half of 2027, Constellation said in its March 31 waiver request at FERC.

Constellation’s request met FERC’s criteria for granting waivers, including that it solves a concrete problem, according to the agency.

“The requested waiver will allow for the transfer of CIRs between the Eddystone units and Crane, which may reduce or eliminate the number of Contingent Facilities for Crane and thereby potentially increase Crane’s interim deliverability and enable Crane to be fully operational before December 31, 2030,” FERC said.

Also, granting the waiver will not have undesirable consequences, such as harming third parties, FERC said.

“Rather, the requested waiver will provide a more efficient use of CIRs due to the Eddystone units’ current inability to use their CIRs as a result of DOE orders requiring them to operate as energy-only resources,” FERC said.

Constellation has a 20-year deal to sell all the energy, capacity and clean energy attributes from the nuclear unit to Microsoft for data centers across PJM’s Mid-Atlantic and Midwest footprint.

In its waiver request, Constellation said that reaching full deliverability status was especially important for the Crane unit. If run for extended periods below their rated power output, the equipment in nuclear units face risk of elevated vibration and wear, which can pose reliability problems, according to the independent power producer.

Tyler Durden Thu, 06/04/2026 - 07:20

Since 2022 Just A Handful Of Countries Have Driven All Sovereign Gold Demand

The 2008 financial crisis marked a structural shift in central bank behaviour

Back in January, UBS showed that most of last year’s increase in gold prices was driven by US policy shocks boosting private demand.

The bulk of the gold price increase last year can be attributed to US policy shifts: UBS

Running in parallel, however, has been a more gradual but persistent rise in official sector gold holdings. A common narrative, one which was started largely on this website, is that this shift began with the Russia–Ukraine conflict, when the freezing of Russia’s foreign exchange reserves heightened incentives for countries to diversify into assets such as gold. (Russia, for example, confirmed in 2021 that its gold reserves are fully held domestically.)

While that is true, UBS chief economist Arendy Kapteyn notes that the true turning point in official sector gold demand came well before 2022. The increase in official sector gold holdings began around the global financial crisis in 2008, not in 2022 (roughly 85% of the increase occurred between August 2008 and February 2022, and about 15% since then).

While sanctions risk has clearly accelerated and reinforced the trend - Russia also stepped up purchases after Crimea in 2014 - but it is likely not the root cause. As highlighted in this IMF paper, the GFC led emerging markets to reassess the safety of advanced-economy assets, given stresses in banking systems and sovereign balance sheets, making gold an attractive hedge.

At the same time, rapid reserve accumulation in the 2000s left many countries heavily exposed to a narrow set of “safe” assets, raising both concentration and correlation risks. In addition, post GFC policies (QE and ultra-low yields) sharply reduced the opportunity cost of holding gold.

What is perhaps most notable is how concentrated - across a universe of roughly 200 countries - the buying has been. Between 2008 and 2022, just six countries — Russia, China, Turkey, India, Poland, and Kazakhstan — accounted for almost the entire increase in official gold holdings. But since 2022, a slightly different group — China, Poland, India, Iraq, Czechia, and Qatar — has driven essentially all net purchases.

See here and here for more detail, for pro subs.

Tyler Durden Thu, 06/04/2026 - 06:55

Humanoid Robots Remain Years Away From Replacing Human Workers

Authored by Stephen Katte via Cointelegraph,

AI robotics company Figure posted several videos on X throughout May showcasing its robots performing basic tasks, including cleaning a room and sorting packages.

Modern artificial intelligence-powered robots are impressive in their capabilities, but are still years away from replacing humans as they can't yet adapt to changing conditions, researchers say.

Last month, AI robotics company Figure showcased its humanoid robots performing basic tasks, such as cleaning a room, but a series of robots working for nine days straight sorting packages sparked conversation about how soon robots could replace jobs.

Welcome to Day 9 of our humanoid livestream: 191 consecutive hours and 238,000 packages.

- Figure (@Figure_robot) May 21, 2026

Oliver Obst, an associate professor of robotics at the Australia based University of New South Wales, told Cointelegraph that repetitive jobs such as physical work in structured environments are currently most at risk of being replaced by robots, while administrative and document-processing tasks could be replaced by AI.

There has been growing concern that AI and robots will replace people in jobs as technology advances. A report in May from workforce consulting firm Challenger, Gray and Christmas found that US companies have laid off an estimated 49,135 people in 2026 due to AI.

However, Obst said that humanoid robots are unlikely to see a mass rollout soon because they don't appear to be more efficient or less error-prone than current robotic manufacturing methods.

"Even in relatively structured settings, they still face problems with reliability, speed, safety, cost, and recovery from unexpected situations," he said. "The harder the environment is to control, the harder the robotics problem becomes. Most human jobs involve more variation and more judgment than the package-sorting demonstration."

"I would not say we are at the point of mass replacement by humanoid robots. We are much closer to the selective automation of some tasks. AI software is moving faster and is already affecting some forms of information work, but physical robots still have a much harder problem to solve."

In another video in May, a human worker managed to sort more packages compared to a team of Figure's robots, which swapped out when needing a recharge. Figure CEO Brett Adock said it would be the last time "a human will ever win."

Congrats to Aime!! He said his left forearm is basically broken. Final scores: F.03: 12,732 packages (2.83 seconds/package) - Aime: 12,924 packages (2.79 seconds/package). This is the last time a human will ever win.

- Brett Adcock (@adcock_brett) May 17, 2026 People Still Better Than Bots In Some Areas

Markus Levin, co-founder of decentralized data network XYO, said AI models and automation software can perform repetitive tasks with far greater consistency and endurance than humans; however, robots still require charging, maintenance and supervision.

A report in September from the International Federation of Robotics found that global demand for factory robots has doubled over the last decade, with warehouses and logistics among the fastest-growing areas of adoption.

"I believe broad human replacement is still likely years away," Levin added, "Reliability, safety, regulation, infrastructure costs, and trust remain major barriers to full-scale deployment across society. The challenge is no longer simply making machines capable of acting but ensuring they can operate safely and reliably as they take on greater autonomy."

Dr Francisco Cruz Naranjo, a senior lecturer at the University of New South Wales with a PhD in robotics, said the efficiency of robots compared to people depends heavily on the activity and the environment.

"Robots are much better at repetitive tasks without the need for constant pauses, as showcased in the Figure livestream. However, in highly dynamic environments, robots still struggle to quickly adapt to changing conditions," he said.

"Humans, in this case, are much better. This is precisely why robots at the moment are highly efficient in controlled environments, such as factories, but they have not yet succeeded widely in home settings."

Naranjo said repetitive jobs performed in a less static setting are at risk of being replaced by robots, but it will depend on how quickly research advances and how quickly society adapts in areas like making spaces robot-friendly, which is likely years away.

Robots In Society Could Be Beneficial

Naranjo and Obst said that a mass rollout of robots in the workforce could be of some benefit, such as improving work-life balance, increasing the workforce in areas with shortages, and addressing dangerous environments that are too risky for humans.

"The social question is harder. If robots make dangerous work cheaper in human terms, that can be good. But it can also have unintended consequences. For example, keeping humans out of harm's way in military operations may save lives, but it could also lower the perceived cost of conflict," Obst said.

"Hypothetically, if we became very successful at automating almost all work, then society would need to rethink economies that are currently built around individual wages and employment."

Tyler Durden Thu, 06/04/2026 - 06:30

UBS Warns El Nino May Intensify Food Inflation Across Asia

By now, readers have a clear understanding that the Gulf-driven energy shock is on course to collide with a potential super El Niño weather event, creating what could be a dangerous second-order shock to food supply chains around the world.

The concern is that extreme heat and disrupted rainfall patterns could hit top agricultural growing belts, dent harvest output, and amplify existing supply stress. Even before those weather-driven impacts fully materialize, global food prices are already rising, suggesting that fertilizer and elevated diesel prices are beginning to be transmitted through the broader food supply chain.

Our Tuesday note on Thailand white rice, a regional Asian benchmark, surging 20% in May, the largest monthly increase in data going back to 2008, is another warning signal that the price action in the grain feeding half the world has entered a new upward impulse.

The troubling move in rice prices, including a 15% surge in Chicago rice futures last month, indicates that food-inflation pressures are already materializing. The concern is that these pressures could materially worsen once El Niño-driven weather disruptions begin affecting key growing regions.

UBS analysts led by Leigha Miyata published a note titled "Food Inflation & El Niño Evidence Check," confirming what we have been tracking for months: the Middle East-driven fertilizer shock is now moving through the global food supply chain just as El Niño risks rise, creating the potential for an inflation surge across Asia later this year into 2027.

Miyata noted that El Niño odds currently stand around 82% for May to June and 96% for December into early 2027, raising the risk of hotter, drier conditions across South and Southeast Asia that could pressure harvests.

Via Miyata ...

El Niño likelihood raised to 82%; expect Asia to be hotter and have less rain:

The El Niño is likely to emerge soon (82% chance in May-July 2026) and continue through Northern Hemisphere winter 2026-27 (96% chance in Dec 2026-Feb 2027, NOAA). Historical patterns show higher temperatures in Indonesia and northern Australia (Figure 1). Temperatures are normally lower in South Korea and Japan, though a "super El Niño" could reverse this, bringing intense heat and rainfall. Precipitation is lower in South and Southeast Asia, posing risks to harvests (Figure 2). Other El Niño impacts include higher power demand, lower supply, and increased disease risk (see p3).

Fertilizer Prices - Urea prices correcting, now +23% since the Iran conflict started:

Though nitrogen supply remains tight, we have seen diverging trends in the last few weeks on the product level. Ammonia pricing has been stable to higher, UAN pricing has been stable, while urea pricing has seen downward corrections, $190/MT (~23%) lower than its peak level in April. Overall the UBS chemicals team see this pointing to the market having moved past peak seasonal tightness, with 2Q likely marking the high point. We believe structurally tight supply from restricted trade flows and constrained production will continue to support the pricing outlook for 2H26/2027 above the cost curve however, and note that physical market flows have yet to improve (full report).

Gov't measures have been helpful, but inflation is rising across Asia:

The FAO Food Price Index averaged 130.7 points in April 2026, up 1.6% from March, marking a third consecutive rise but at a slower pace. Gains in vegetable oils, meat, and cereals were partly offset by declines in sugar and dairy. The index was 2.0% higher year-on-year but remained 18.4% below its March 2022 peak. Inflation across all major Asian economies is increasing with the exception of Indonesia and Japan, and corn futures for 2026/2027 are up ~4%/5% since the Iran conflict started. UBS economists explain that inflation was likely lower in many Asian economies due to quick policy-action post Iran conflict, but that inflation will likely rise going forward (full report). In the Philippines, the level of inflation has shot up from 2.3%/3.9% in Feb/Mar to 7.1% in Apr. In Thailand, deflation in Feb/Mar has shifted to 2.9% inflation in April (Figure 5). For Japan, there are no clear signs yet of strong inflationary pressure from Middle East tensions. However, we expect national CPI for May to pick up slightly to 1.5% from 1.4% in April, suggesting April was likely the trough. Food inflation in Japan decelerated from 4.6% YoY in April to 4.1% YoY in May, though on a MoM basis, food inflation rose 0.3% (full report).

Packaging and freight costs are up; El Niño in 2026-27, fertilizer impact in 2027:

Plastic packaging prices in Japan are reported to be up 20 to 30%. This together with transport costs are expected to raise food prices, but this is not yet visible in the data for Japan. If El Niño materializes, we may see drought impact the harvests in Sep 2026- and Apr 2027- in South and Southeast Asia. Higher fertilizer costs may also affect harvests from April 2027 onwards.

UBS views on El Niño impacts

1. Agri-business: Tightening global balances and large speculative shorts mean an El Niño-driven disruption to India's monsoon could reduce sugar production by ~3–8mn tons YoY and trigger price spikes.

2. Agriculture & Inflation (India): El Niño-driven weak monsoon risks (forecast ~92% of normal rainfall) could lift food inflation, though only ~21% of CPI is directly impacted, limiting first-round effects but raising second-round risks if shocks persist.

3. Health Care (Brazil): El Niño-driven changes in mosquito patterns could increase dengue cases, with prior events (2023/24) coinciding with record infections (~6.6mn cases).

4. Thermal coal / Power demand: A potential "super El Niño" could drive extreme heat across Asia, boosting electricity demand (especially for cooling) and increasing coal demand and imports, tightening seaborne markets.

5. Hydropower / Power supply: El Niño-related rainfall shifts could reduce hydro generation in LatAm and Africa, further supporting demand for thermal coal.

6. Insurance / Reinsurance: El Niño conditions are associated with below-average hurricane activity, which could improve insurers' near-term book value but pressure pricing due to increased capital supply. In Australia, El Niño years tend to have lower catastrophe losses, though drought and bushfire risks rise.

Figure 6: Real GDP growth %y/y: pre- and post-Iran conflict

Figure 7: Asia's inflation likely to pick up on base effects

Figure 12: Energy/fertilizer shock impact chain

Figure 13: Thailand and India are likely to be negatively impacted in APAC. All importers, including Japan will face higher prices

Related:

• We Are 6 Months From Global Food Shortages Because Farmers Are Facing A Quadruple Whammy Crisis

• Everyone Talks About The Cost Of Gasoline... Soon Everyone Will Be Talking About The Cost Of Food

Last month, ZeroHedge Debates held a roundtable to ask, "How bad will the food inflation mess get?"

Professional subscribers can read the full "Food Inflation & El Niño Evidence Check" here at our new Marketdesk.ai port.

Tyler Durden Thu, 06/04/2026 - 05:45

BBC Sinks To A New Low...

Authored by Steve Watson via Modernity,

The BBC has once again demonstrated its role as a partisan propaganda machine rather than a neutral public broadcaster.

On its flagship evening news show Newsnight, presenter Matt Chorley repeatedly claimed Reform UK leader Nigel Farage called for a "white cold rage" in response to the murder of 18-year-old student Henry Nowak.

Yet Farage said no such thing. He called for "pure cold rage" - a measured, determined pushback against institutional failures and anti-white bias in policing and justice.

The BBC had just sunk to a new low.

On Newsnight last night, presenter Matt Chorley claimed Nigel Farage said people should respond to the murder of Henry Nowak with "white cold rage".

Nigel DID NOT SAY THIS.

The insertion of the word "white" by the BBC is obviously... pic.twitter.com/OwFxXNUy5N

- Zia Yusuf (@ZiaYusufUK) June 3, 2026

Chorley repeated the fabricated racial angle three times. The insertion was no accident. It transformed a call for equal justice and accountability into something that could be painted as divisive racial incitement.

When caught, Chorley issued a tepid apology on X, claiming a "misremembering" while insisting it "didn't change the content of the interview."

I owe Nigel Farage an apology.

During last night's Newsnight we covered the murder of Henry Nowak and the political reaction to the case, including discussing Nigel Farage's comments about "pure, cold rage".

However I referred to "white cold rage". This was a mistake on my part, a misremembering of the quote. It didn't change the content of the interview but I should have got the quote right. I apologise to Nigel Farage for this.

- Matt Chorley (@MattChorley) June 3, 2026

Critics across the board rejected that claim outright.

Of course it changed the content of the interview, it added racially inflammatory comments where there were none. You'd never have made a similar revealing slip THREE times using black instead of white.

Reflects your innate bias and that of the BBC.

And I don't trust Farage...

- Mark Kingsley-Williams (@Mark_A_K_W) June 3, 2026

Pure cold rage became "white cold rage" because the institutional mindset equates any pushback against two-tier standards with whiteness.

Completely unacceptable. Nigel Farage said "pure cold rage" and the BBC decided to report it as "white cold rage".

This is why fewer and fewer people trust the BBC. They created BBC Verify to counter misinformation, but they are the biggest culprits of misinformation. https://t.co/DRFJiCc209

- Chris Rose (@ArchRose90) June 3, 2026

Fuck off. You knew EXACTLY what you were doing.

Stop taking us for fools. We're sick of it, Matt.

- Professor Dr King Mike ? (@MikeSouthWestUK) June 3, 2026

If GB News did this to a left wing politician Ofcom would have raided the building by now.

Will the BBC be taken off air?

During a crucial byelection too. https://t.co/jFVGmDa9sh

- Zia Yusuf (@ZiaYusufUK) June 3, 2026

A full on-air correction and explanation of what Farage actually said is the minimum standard for any credible outlet. The pattern of one-directional "mistakes" - always inflating racial angles against critics of mass immigration, DEI, or institutional bias - tells its own story.

The Henry Nowak case has exploded back into the headlines following the release of the horrible Bodycam footage of the incident and the trial of his murderer. Nowak lay on the ground bleeding heavily, repeatedly telling officers "I've been stabbed" and "I can't breathe." Instead of providing urgent medical aid, officers dragged him across gravel, handcuffed him, and initially treated him as a suspect based on Digwa's false racism allegations and minor complaints about a swollen eye.

Digwa was not handcuffed at the scene. His family stood over the dying victim pushing the race narrative. Hampshire Police's initial statement claiming quick life-saving measures was later deleted once the footage emerged. Protests followed the footage release. Some turned violent in Southampton last night, with clashes injuring officers.

This latest incident fits the established pattern of BBC editorial choices that downplay or twist stories challenging progressive narratives on policing, identity politics, and institutional bias. Previous coverage on the same programme saw presenter Victoria Derbyshire act surprised when an ex-cop refused to excuse the initial response to Nowak. The discomfort was palpable as facts about prioritising a false racism claim over a dying victim's pleas were laid out.

An ex-police officer appearing on BBC Newsnight described the response as "unfathomable." Basic procedure demands prioritising medical assessment for anyone reporting stab wounds and bleeding out, not handcuffing or accepting unverified claims from the attacker. The Independent Office for Police Conduct is investigating. Nowak's father demanded transparency, stating his son "did not die with dignity" and that being read his rights was among the last things he heard while dying.

The BBC consistently frames cases involving white victims and minority perpetrators through a lens that protects DEI-influenced institutions while pathologising any demand for colour-blind standards.

The "white cold rage" fabrication is the latest example of this reflexive racialisation - turning legitimate fury over two-tier policing into a smear. It mirrors broader BBC output that has portrayed Islamist issues sympathetically, pushed contested social agendas, and faced lawsuits over distorted editing, including the ongoing Trump case. The organisation's charter obligations on impartiality appear secondary to its institutional worldview.

Farage's actual words on the Nowak case called for cold, principled determination to restore equal treatment before the law - not hot-headed violence or racial payback. The BBC's version injected race where Farage spoke of universal standards trashed by fear of labels. That single word change reveals more about the presenter's and the organisation's priors than about Farage.

We also knew this would be the leftist establishment playbook in the Nowak case when it finally received the attention it warranted.

Public trust in the BBC continues to erode precisely because of episodes like this. Licence fee payers subsidise an outlet that treats one side of the political spectrum as requiring constant racial vetting while giving institutional failures a pass.

Reform voices and ordinary citizens demanding accountability for the Nowak case and similar incidents are not the problem. The problem is an entrenched media class that cannot report straight when the facts challenge their worldview.

The weak apology changes nothing substantive. Full transparency, on-air correction, and serious consequences for editorial failures would be the start of rebuilding credibility. Until then, the BBC remains what its actions show it to be: a publicly funded vehicle for advancing selective narratives rather than pursuing truth.

Those who value free speech, equal justice, and genuine accountability know the only long-term answer involves stripping away its compulsory funding and letting it compete in the open market like every other outlet.

Tyler Durden Thu, 06/04/2026 - 05:00

Germany, France, UK See Opportunity To Revive Putin Talks Without Washington

Europe's most influential powers of Germany, France, and the United Kingdom are trying to again jump-start Ukraine war peace talks, collectively operating as the E3 group.

They seek to implement a new framework aimed at engaging Russian President Vladimir Putin in direct negotiations to end the war. Reuters on Wednesday reports that "A window for dialogue is slowly opening between Russia and Europe on Ukraine, ​although it is likely to be months before talks can ‌begin, a German government official said at a briefing on Wednesday."

It seems this window of opportunity is based to some degree on perceptions that the war tide and momentum is finally shifting in Ukraine's favor, given the increasing effectiveness of Ukraine's devastating cross-border drone attacks of late.

European leaders apparently view the current battlefield and political dynamics as having strengthened Kiev's bargaining position, creating what they believe is the optimal moment to press Moscow for talks.

Zelensky himself is suddenly talking about directly engaging Putin this week, saying that he's 'ready' to go to the table:

🇺🇦🇷🇺Zelensky just went nuclear on the wait-and-see game:

“I’m ready for direct negotiations with Putin RIGHT NOW! Not sitting in line while the world finishes every other war first.”pic.twitter.com/yLEkLAc9zD

— Mario Nawfal (@MarioNawfal) June 3, 2026

The groundwork was reportedly laid in late May, when Zelenskyy sat down for a high-stakes meeting with French President Emmanuel Macron, UK Prime Minister Keir Starmer, and German Chancellor Friedrich Merz.

The leaders have sought to revamp the entire Western negotiation strategy, presenting a fiercely united European front, at a moment the Trump administration is seen as on the sidelines, or even perhaps ambivalent and apathetic to the question of Ukraine peace.

The EU has been pushing back against external influence on selecting negotiators for peace talks, and apparently trying to wrest any potential peace framework from Washington influence. It was the US leading the way on this, but nothing has happened especially since the Iran war took prominence in the US administration's thinking.

Europe's traditional power brokers are desperate to prove they still hold the leverage to dictate the terms of their own backyard security. Whether Putin feels any compelling reason to play ball with the E3 framework remains an entirely different question of course.

But according to more from Reuters, "The German official said recent fighting indicates it is likely to take months, rather than weeks, to reach a point where ​talks could begin, and ​that it was ⁠key to ensure they were conducted in full agreement with Ukraine."

//--> Russia x Ukraine ceasefire agreement by October 31, 2026?
Yes 30% · No 71%
View full market & trade on Polymarket

So for now it seems the battlefield will continue to determine who has the leverage or not, as each continues inflicting more and more pain on the other. Russia's aerial attacks on Ukrainian cities have only grown more deadly and expansive. The same cam be said for Ukraine's cross-border drone attacks on Russian territory, which on Wednesday wreaked havoc on St. Petersburg.

Tyler Durden Thu, 06/04/2026 - 04:15

After Murder Of Henry Nowak, Amnesty International Condemns Right Wing 'Political Commentary'

Via Remix News,

Amnesty International’s reaction to the murder of Henry Nowak has prompted outrage, with the organization having nothing to say about the atrocious and inhumane actions of the police during the incident, but sharply condemning the “political commentary” in the wake of Nowak’s death.

“At a time when hate crimes are rising, and violence and fear are becoming a daily reality for people of colour and migrants, calls for ‘cold, hard rage’ are completely reckless. Henry Nowak’s murder is an awful tragedy and his family have said “we do not want his death to be used to create further division, hatred or tension”. The very least politicians can do is respect that,” wrote Amnesty International.

Not everyone is happy about Amnesty International’s remarks on the case, which has up until now, said nothing about the manner in which the police handcuffed a dying Nowak as he bled out from eight stab wounds.

Swedish MEP Charlie Weimers wrote on X, “Amnesty has been morally bankrupt for a long time. A pure left-wing organization."

Amnesty är moraliskt bankrutt sedan länge. En ren vänsterorganisation. https://t.co/6W2UaEgNdW

— Charlie Weimers MEP 🇸🇪 (@weimers) June 3, 2026

He was responding to a comment from Lauren Chen, who wrote:

“Incredible statement from Amnesty International UK on Henry Nowak: Not a single word of conveying outrage or horror over the brutal murder, or of how police left him to die without dignity. Instead, their statement is about policing the political commentary around the case. I kid you not. What a grotesque betrayal of any moral purpose.These NGOs aren’t just useless – they actively despise you. They are hostile to everything you value and everything you hold dear.”

Amnesty International, however, is known for its pro-migration and left-wing stances and has a long history of funding from the Open Society Foundation of George Soros. Nevertheless, the organization is often critical of police conduct, which makes it all the more remarkable that the organization has nothing to say about the police’s actions in this case.

🇬🇧 The distressing bodycam footage of Henry Nowak's final minutes has been released by the Crown Prosecution Service.

Henry was stabbed by Vickrum Digwa, with an 8-inch blade he said he carried as part of his Sikh faith, while walking home alone in December last year in… pic.twitter.com/mIM1BgGdkj

— Remix News & Views (@RMXnews) June 1, 2026

The Southampton officers in the case disregarded Nowak’s pleas for help while immediately taking the claims of Vickrum Digwa, who said Nowak made racist comments to him, at face value. Notably, Nowak told the police multiple times that he had been stabbed and warned them: “I can’t breathe.” When he told the officer he had been stabbed, the officer replied, “I don’t think you have, mate.”

At the same time, the murder weapon was given to his mother, and police later found it at the family home along with more than 20 other weapons. His mother is due to be sentenced for removing the murder weapon from the crime scene.

The Nowak case has many parallels with the George Floyd case, where Police Officer Derek Chauvin was controversially convicted for murdering Floyd after placing him in handcuffs and kneeling on his back while Floyd said, “I can’t breathe.” Although the left weaponized the case, sparking mass riots the resulted in billions of damage across the United States, Amnesty International never condemned the left’s political rhetoric in the Floyd case. The Soros-funded organization also never condemned the mass riots, which left stores and homes burned out across major American cities.

If anything, Amnesty International’s “political commentary” around the case only served to inflame tensions and put vulnerable communities under further threat.

This double standard has not been lost on English protesters, who gathered in the streets and chanted “I can’t breathe,” at police officers in Southhampton yesterday, before unrest broke out. Notably, no shops were burned and no businesses harmed during the small-scale unrest — a far cry from the mass riots following Floyd’s death.

JUST IN: 🇬🇧

Thousands of English protesters chant, "i can't breathe," in front of the Southampton police station.

They are protesting the treatment of Henry Nowak by British police, who handcuffed the youth as he lay dying from multiple stab wounds.pic.twitter.com/kXg35Rnw1R

— Remix News & Views (@RMXnews) June 2, 2026

The murder of Nowak had sparked anger across Britain, but parties on the right, in particular, have been the most critical. Amnesty International appears unhappy that political commentators are pointing out the racial double-standard at work, including the police immediately taking the side of the murderer because he cried, “racist.”

Meanwhile, the leader of Restore Britain, Rupert Lowe, is making headlines for his call to return the death penalty for killers like Digwa.

A Restore Britain Government would give the British people a referendum on removing men like Digwa from society for good.

The ultimate deterrent.

The death penalty. pic.twitter.com/yaXWeOnKXa

— Rupert Lowe MP (@RupertLowe10) June 2, 2026

His proposal has now received backing from Elon Musk.

It is this or death https://t.co/zCDJXO9gW1

— Elon Musk (@elonmusk) June 2, 2026

All of this explains Amnesty’s position and why that organization will never try to hold the police accountable for their actions in the Nowak murder case.

Read more here...

Tyler Durden Thu, 06/04/2026 - 03:30

EU Could Lose 1.3 Million Jobs Due To Energy Price Surge From Iran War

Up to 1.3 million jobs across the EU are at risk because of the ongoing war in the Middle East, European Commissioner for jobs Roxana Mînzatu said on Wednesday.

"Due to the war in the Middle East, up to 1.3 million jobs are at risk, particularly in energy-intensive industries," Mînzatu said at a press conference.

"Let me also underline that increased energy costs will have a particular negative impact on lower-income households in Europe, which is why we recommend that all member states take targeted measures so that they can support vulnerable groups," the Commissioner added.

According to the report, the EU automotive sector could face ​the biggest layoffs of up to 600,000. Construction, metals, chemicals, transport could lose 56,000 jobs. Some 85,000 jobs in battery projects could be at risk ​and 58,852 ​jobs ⁠in solar manufacturing. Another 4,500 jobs could go in the ​steel sector because of low-carbon ​measures.

In a stagflationary double whammy, Low-income ⁠households could spend an additional 1.4% of income on transport fuel.

As Euronews reports, the warning came during the presentation of the 2026 Spring Semester Package, a bi-annual publication by the EU executive that provides guidance to the 27 member states on the bloc's economic priorities.

The conflict has already had tangible effects on the European economy, with energy prices surging as a result. According to the latest European economic forecasts published in May, the war has slowed European growth while pushing inflation higher. Yesterday we learned that Euro Area inflation topped 3% for the first time since 2023, cementing an ECB rate hike next week.

Economic data on growth and inflation vary sharply across the EU, a disparity the Commission considers a threat to competitiveness.
Key priorities

The package dedicates significant space to employment, focusing on the promotion of quality jobs and how EU countries can tackle persistent shortages of skilled workers in strategically important sectors.

"Improving educational outcomes and better aligning people's skills with labor market needs remain key priorities, also to address labour and skills shortages which are particularly acute in strategic sectors such as cybersecurity, quantum, artificial intelligence and semiconductors," the Semester Package states.

At the press conference, Mînzatu said that 77% of European companies report that skill shortages remain a significant barrier to investment. She identified poor working conditions as the main driver of those shortages.

"We cannot attract talent, we cannot reduce shortages, we cannot improve people's earnings without making sure we have good working conditions," the Commissioner said.

Since the beginning of this mandate, European Commission President Ursula von der Leyen has made competitiveness one of the Commission's highest priorities as geopolitical uncertainties mount.

The latest Semester Package reflects this, focusing on how Europe can strengthen its position on the global stage.

In particular, the bloc wants to reduce economic barriers in the single market, create a more business-friendly environment for companies and capital, and minimise strategic dependencies – especially on China and the US.

To that end, the Commission is pushing member states towards a more robust industrial policy, greater investment in capital markets, and a simplification agenda that would, among other things, reduce administrative burdens both in the private and public sector.

In parallel, the Commission is working to accelerate economic reforms at the EU level, though progress relies heavily on the willingness of member states to act – a longstanding coordination challenge.

Tyler Durden Thu, 06/04/2026 - 02:45

Iran To Deepen Ties With 'Principal Strategic Partner' China: Ghalibaf

Via The Cradle

Iranian Parliament Speaker and special representative for China affairs, Mohammad Bagher Ghalibaf, held the first joint meeting with key economic officials on Wednesday to align Tehran's economic strategy toward Beijing.

The session in Tehran included the ministers of economy, oil, and industry, alongside the central bank governor and the head of the Plan and Budget Organization.

The assembly focused on establishing a unified government approach to elevate bilateral relations and coordinate the administration's economic priorities. During the proceedings, officials evaluated China’s economic conduct amid the US-Israeli war on Iran and the closure of the Strait of Hormuz to the US and Israel.

Participants agreed to submit formal proposals to Ghalibaf to resolve outstanding challenges and deepen cooperation. 

This coordination effort supports a developing strategy to position China as Iran’s “principal strategic partner” while expanding collaboration on regional and international issues.

Roughly 30 China-linked vessels crossed the Strait of Hormuz in a single day in mid-May under the supervision of Iran's Islamic Revolutionary Guard Corps (IRGC) Navy. 

These transits follow a “management protocol” established after Iran restricted the waterway to US and Israeli-linked vessels in February. 

While the strait remains largely closed, passage is permitted for commercial ships that comply with Iranian naval procedures and utilize designated corridors 

In parallel, since the 'illegal' US blockade on Iranian ports was implemented in April, Iran has tripled its rail exports of oil and liquefied petroleum gas (LPG) to China in an effort to bypass the economic stranglehold. 

Iran's special representative for China affairs @mb_ghalibaf held a joint meeting with the ministers of economy and oil, the Governor of the Central Bank of Iran (CBI), the head of the Plan and Budget Organization, and the Minister of Industry, Mine, and Trade. pic.twitter.com/0qHZlb2zIm

— IRNA News Agency ☫ (@IrnaEnglish) June 3, 2026

Freight trains on the 10,400-kilometer corridor now depart every three to four days, a significant increase from the previous weekly schedule, and halve traditional sea transit times to roughly 15 days.

Despite this, rail capacity remains a modest alternative to maritime shipping; one train carries 60,000 to 70,000 barrels of oil, while large tankers can transport upwards of 2 million barrels.

Tyler Durden Thu, 06/04/2026 - 02:00

US Formally Rejects Somaliland Sovereignty In Blow To Israel

Via Middle East Eye

The US has reaffirmed “the sovereignty and territorial integrity” of Somalia, in a move seen as a blow to Somaliland, the breakaway region recently recognized by Israel and close to the United Arab Emirates. In a report to Congress on “Potential Areas for Improved United States Engagement with Somaliland”, the US State Department stated that Somaliland was included in the Federal Republic of Somalia.

“Within that framework, the United States maintains a positive, constructive relationship with Somaliland and continues to explore additional opportunities for engagement with Somaliland authorities,” the report says. Israel became the first country in the world to formally recognize Somaliland on December 26 last year.

Reuters/MEE: Somaliland military armed vehicles take part in a parade during the self-declared Independence Day, with celebrations commemorating their 1991 breakaway from Somalia, on 18 May 2026

The month before, Somaliland President Abdirahman Abdullahi Mohamed secretly visited Israel, meeting with Israeli Prime Minister Benjamin Netanyahu and other “top officials”, according to multiple sources in Somalia and Somaliland. 

Those other officials included Mossad chief David Barnea and Foreign Minister Gideon Saar, who visited Somaliland immediately after Israel formally recognised the former British colony’s sovereignty. 

'Recognition is bigger than anything else. Do you have an alternative for us?'

- Rooble Mohamed, Somaliland government adviser

Somaliland has since recognized Jerusalem as Israel's capital, establishing an embassy there as meetings between Somaliland and Israeli ministers have continued and pro-Israel figures in the media have taken up the cause of independence for the breakaway Somali region. 

Jake Wallis Simons, former editor of the Jewish Chronicle, and Andrew Fox, an associate fellow at the right-wing Henry Jackson Society, were flown out to Somaliland for the May 18th self-declared independence day celebrations in Hargeisa, the region’s capital. Both men are ardent supporters of Israel. The UK’s former defence minister, Conservative MP Gavin Williamson, another keen supporter of Somaliland, was also part of the trip. 

Somaliland is hoping that Israel’s recognition will be followed by the UAE, with Ethiopia, India, Cyprus and Georgia also in its sights. 

Trump not expected to recognize Somaliland

A congressional source told Middle East Eye they did not expect US President Donald Trump’s administration to recognise Somaliland. Though lobbyists, including former Trump officials Tibor Nagy and Peter Pham, had raised the hopes of Somalilanders over US recognition, “there was never a sign that the president would go through with it,” the source said.

Trump has persistently singled out Somalia and Somali Americans for abuse during his second term in office. He has referred to Somalis as “low IQ people” and said that all Somalis are “crooked as hell”. He has said that Somali American congresswoman Ilhan Omar “is garbage”, and that “her friends are garbage”. 

A Somali analyst and policy adviser, who could not be named as he works with officials in both Somalia and Somaliland, told MEE he thought the report to Congress was “a consequential announcement that may effectively close the door on any lingering hopes of US recognition for Somaliland”.

The #UnitedStates affirms its recognition of the sovereignty and territorial integrity of the Federal Republic of #Somalia, which encompasses the region of Somaliland.

Furthermore, this report emphasizes the challenges associated with investing in #Somaliland due to its… pic.twitter.com/j7uPDiN0up

— SMS Somali TV (@SMSSomaliTV1) June 1, 2026

“From a strategic perspective, why settle for part of the cake when the whole cake remains within reach,” he said, referring to US ambitions across the whole of Somalia.

Asked if he agreed with this analysis, Rooble Mohamed, who is a consultant for the Somaliland communications ministry, told MEE: “The United States does not currently recognize Somaliland, so unless there is a formal recognition, such a statement is the reality for now. “The US does not officially recognize Taiwan as a sovereign state but has its own arrangements with it as a separate entity from China. This proposal seems to be the same.”

Somaliland's strategic importance for Israel, UAE and US

Somaliland and its location on the Red Sea have become more strategically important to the US, Israel and its allies with the rise of the Houthis in Yemen, the war on Iran and threats to shipping in one of the world’s busiest sea lanes. After it entered the war in Yemen, the UAE began building a ring of bases to control the Gulf of Aden. 

This was done with the help of Israeli military and intelligence officers, even before relations between the two countries were normalised as part of the Abraham Accords in 2020. Berbera, Somaliland’s main port, was part of this circle of bases, which is no longer fully intact following the rift between the UAE and its coalition partner in Yemen, Saudi Arabia.

The State Department’s report to Congress is clear on this matter. “Somaliland’s strategic location near Yemen and the Bab al-Mandab Strait positions it as a potential partner on shared security interests, including freedom of commercial and military navigation from the Red Sea to the Indian Ocean,” it says.

via BBC

Israeli and Somaliland officials are in talks about the establishment of an Israeli base at Berbera. The UAE’s DP World also runs its own port there, which is co-owned by the British government through its foreign investment arm. 

“Somaliland authorities have encouraged US investment in minerals and outlined priorities in infrastructure, trade, and economic growth,” the report to Congress says. Somaliland officials have said their soil is rich in lithium, coltan and other sought-after resources, and they have suggested that US access to these riches could come alongside recognition. 

The State Department report also mentions the “ongoing development” of Berbera’s airport and seaports “into a trade and transportation hub for Somaliland and landlocked Ethiopia”, saying this could “create increased opportunities” for the US. However, the report concludes, “regional security concerns and the dispute over Somaliland’s status, including its refusal to cooperate with national authorities, present challenges for investment, banking, and trade.” 

Asked if he thought Israel’s recognition was doing Somaliland more harm than good, given the genocide in Gaza and Israel’s plummeting popularity worldwide and particularly in the Muslim world, Rooble Mohamed said the government in Hargeisa had “no alternatives”.

“Recognition is bigger than anything else. Do you have an alternative for us? We are one of the Muslim countries of the world, I don’t think we are different. I think it’s normal to have a relationship with Israel,” Mohamed said. “It does not mean the Palestinians are our enemies.”

Tyler Durden Wed, 06/03/2026 - 23:25

'Putin's Davos' Forum Opens Under Heavy Ukrainian Drone Attack, With Candace Owens & Trump Official In Attendance

Ukraine's President Zelensky has freshly stated that he's ready for direct talks with his Russian counterpart Vladimir Putin in order to end the war, but he also warned that the alternative is for Ukraine to increase its retaliatory strikes on Russia, 

The head of Ukraine's Presidential Office, Kyrylo Budanov, stated this week: "Zelensky has instructed officials to try to end this war as quickly as possible, preferably before winter." But the ground war reality as well the escalating tit-for-tat air campaigns, tell a different story of a brutal and largely stalemated conflict which is likely to just grind on for the foreseeable future.

via Ukrinform

The last 24 hour period has seen a significant drone wave rain down on Russia's second largest city of St. Petersburg.

The attack seemed to be met with little in the way of anti-air defenses, with circulating local footage showing security forces trying to shoot down inbound drones only with small arms. Local authorities later said there were several injuries across the region, but no one was killed.

The new attack seemed intentionally timed for the city's major economic forum designed to attract foreign investment into the country. Putin is scheduled to oversee the three-day St. Petersburg International Economic Forum (SPIEF) and will give a keynote address.

Amused residents film Russian servicemembers trying and failing to shoot down Ukrainian one-way drones with automatic rifles during this morning’s large-scale attack against the Northwestern Russian city of St. Petersburg. pic.twitter.com/ecHcM54jfK

— OSINTdefender (@sentdefender) June 3, 2026

The forum has been dubbed as 'Putin's Davos' - and according to CNN:

Ukrainian drones rained down on St. Petersburg late Tuesday, striking infrastructure and wounding several people, just hours before Russian President Vladimir Putin’s signature economic forum opened in the city.

Hundreds of drones hit several other Russian cities overnight, with Kyiv claiming to have struck a naval warship and other key assets in a major attack reaching as far as Moscow.

Three districts of St. Petersburg were targeted in the overnight Ukrainian drone assault, according to its governor Aleksandr Beglov. The city is this week hosting the St. Petersburg International Economic Forum, often dubbed Putin’s version of Davos.

In the below, the WSJ's foreign chief correspondent has moved from journalist to advocate:

Ukrainian aircraft arrive to deliver a keynote address at the St Petersburg International Economic Forum that opens this morning. Special entertainment for Candace Owens, Andrew Tate and all the other distinguished guests. pic.twitter.com/S8GFB9cTAs

— Yaroslav Trofimov (@yarotrof) June 3, 2026

Broke black plumes of smoke rose over St. Petersburg just as thousands of guests from 130 countries were due to attend. Importantly, this has included 'low level' Trump administration delegation.

BBC writes, "Mobile internet was disrupted and St Petersburg's Pulkovo Airport was temporarily closed, while some regions of nearby Latvia and Estonia also issued air raid alerts." Dozens of regional flights were also delayed.

President Zelensky boastfully owned up to it, after Kiev has already come under heavy Russian bombardment this week. Zelensky commented Wednesday: "Ukraine’s plan for long-range sanctions is being implemented exactly as needed to bring peace closer."

He tweeted footage of the aftermath of Ukrainian drones hitting the St. Petersburg Oil Terminal. Nearby Kronstadt, home to the headquarters base of the Russian Navy's Baltic Fleet, also reportedly suffered attack.

Ukrainian attack drones opened this year's Russian Saint Petersburg International Economic Forum, successfully striking the city's fuel and oil maritime terminal this morning. pic.twitter.com/LHSZkCG7qe

— распад и неуважение (@VictorKvert2008) June 3, 2026

Among the dignitaries attending this year's SPEIF conference is Rodney Mims Cook Jr., who is overseeing President Trump’s controversial planned White House ballroom.

"The attendance of Cook, the chairman of the U.S. Commission of Fine Arts, has been portrayed by Russian officials as representing the first official U.S. delegation to SPIEF after years of boycotts," The Washington Post writes. "Cook has said his participation was approved by the State Department; however, he did not appear to be part of an official delegation appointed by President Donald Trump."

Also interesting is that Candace Owns is in attendance, and expected to speak at a session on "balancing parenthood in a large family with a successful career."

The Christian expression and heritage here is unmatched.
Unsurprisingly, they are lying to us about Russia. ✝️ pic.twitter.com/pNbwPmiq3m

— Candace Owens (@RealCandaceO) June 1, 2026

One aspect to the forum is Russia asserting itself as a more traditionalist, family-oriented society, compared to the progressiveness and 'wokeness' of the West.

Online 'influencer' brothers Andrew and Tristan Tate have also filmed themselves arriving in Russia, though did not initially confirm whether they planned to attend the forum in St. Petersburg.

Andrew Tate has arrived in Russia

The controversial influencer was welcomed with honors at the airport.

Tate is known for his outspoken views on women and his massive online following.

He and his brother Tristan remain under investigation in Romania and the United Kingdom.… pic.twitter.com/WvmrlpIGK3

— NEXTA (@nexta_tv) June 2, 2026

Some of the attacks landed in the daylight hours, startling onlookers among St. Petersburg streets...

The Saint Petersburg International Economic Forum of 2026 (SPIEF 2026) in Russia has started with a very fiery keynote speech by the Ukrainian surprise guests. pic.twitter.com/VVIuGcQCO7

— (((Tendar))) (@Tendar) June 3, 2026

From the forum venue itself: large black plumes can be seen enveloping the skyline...

A burning oil terminal in Saint Petersburg, in the background of the SPIEF, while Russia tries to sell its economic resilience.

President Putin and top military brass had last month said strikes would be initiated against "decision-making centers" in response to the dorm attack in the Russia’s Lugansk People’s Republic on May 22, which killed 21 people - mostly teenage girls - and injured 70 others.

🇺🇦🇷🇺🛢️ Un terminal pétrolier en feu à Saint-Pétersbourg, en arrière-plan du SPIEF, pendant que la Russie tente de vendre sa “résilience économique”.

Franchement, difficile de faire plus symbolique. pic.twitter.com/l4X81RoNGK

— Alex 🇫🇷 (@Alexandree1507) June 3, 2026

Kremlin officials now say that Russian forces have "a right to dismantle any infrastructure that supports terrorism." This new bus attack strongly suggests there's no off-ramp or de-escalation on the horizon, but that tit-for-tat strikes will only grow and become more violent. And the fresh attack on St. Petersburg is certainly not going to help matters.

Tyler Durden Wed, 06/03/2026 - 23:00

Iran Issues 4-Stage Proposal For Deal With US, After Most Intense Overnight Clashes Since April Summary

• State media issues four-stage proposal for deal with US, says indirect talks are 'ongoing'.
• GCC blasts 'cowardly attacks' after Kuwait International Airport rocked by Iranian missiles: one dead, 63 injured.
• Overnight saw US-Iran exchange fire in Strait of Hormuz - as US attacked Qeshm Island - and Iran unleashed more projectiles on Gulf states. Most intense fighting since April.
• IRGC via state media: Tehran has frozen all back-channel communication with Washington over Israeli operations in Lebanon, calls Trump narrative a fantasy.
• Trump says Iran has agreed not to pursue a nuclear weapon, while saying talks are still ongoing. Tells NYP he believes the crisis in the Strait of Hormuz will "resolve itself fairly quickly."

//--> //--> //--> US x Iran permanent peace deal by June 30, 2026?
Yes 24% · No 77%
View full market & trade on Polymarket

*  *  *

Trump Claims Iran 'Close' To Signing Paper 'In Theory'

The two sides don't actually appear to be any closer to a deal or so much as a MOU to get back to the table, but President Trump is still signaling optimism:

Trump on Iran:

In theory, they are pretty close to signing the paper.

On what you saw for the last few nights: it takes two to tango. pic.twitter.com/j6z0PjP8ve

— Clash Report (@clashreport) June 3, 2026 Fars: Outline of Iran's 4-Stage Proposal For Deal With US

Fars Politics on Telegram has issued the following outline on Wednesday (machine translated). Also, somewhat contradicting reports from other state media outlets, Fars has stated that indirect talks with Washington are still ongoing, but that no final decision on a MOU has yet been made.

Phase 1: Ending war and halting military actions.

Phase 2: Tangible measures, including: The issue of the strait and the mechanisms related to it,
Lifting the blockade, Removing restrictions and oil sanctions, Releasing part of Iran's frozen assets and blocked financial resources.

Phase 3: Dedicated to discussions on sanctions and the nuclear file.

Phase 4: Involves establishing a supervisory committee to oversee implementation of the understanding and monitor the commitments of all parties.

Saeed Ajorlou, a member of the media team of the negotiating delegation provided the following commentary via Fars:

Phase One is ending the war and achieving a complete halt to military actions. This must encompass all parties and all fronts—whether Iran and the United States or the so-called Resistance Axis.

After Phase One is stabilized, the focus shifts to practical and tangible measures. In this phase, four key issues must be addressed:

• The issue of the strait and the mechanisms related to it
• Lifting the blockade,
• Removing restrictions and oil sanctions,
• Releasing part of Iran's frozen assets and blocked financial resources.

Phase Three is dedicated to discussions on sanctions and the nuclear file. At this stage, after concrete and verifiable measures have been implemented, negotiations will begin on broader sanctions relief as well as issues related to the nuclear program.

Phase Four involves establishing a supervisory committee to oversee implementation of the understanding and monitor the commitments of all parties. The members of this committee have not yet been finalized, but Iran is seeking to include friendly and aligned countries in the mechanism so that the implementation process has sufficient backing and support.

By the looks of the above proposal, the warring sides seem very much still at square one.

State Media Still Insists Talks Are Frozen, Amid Most Intense Fighting Since April

State media statement on Wednesday:

IRGC-linked Tasnim claims Tehran has frozen all back-channel communication with Washington over Israeli operations in Lebanon, directly contradicting Trump's assertion that messages are arriving daily from Iran. Tasnim: "Trump's claim that Iran is confirming the issue is completely different from reality."

Iran's Foreign Minister is meanwhile articulating that Iran will lay down some new red lines via military strikes, which he has dubbed 'self-defense' in nature...

Our Armed Forces are conducting self-defense strikes on sites the U.S. is permitted to use to attack civilian shipping and violate the ceasefire.

Any hostile act will be met with an immediate, decisive response. What sanctions and war failed to achieve won't be won with more war pic.twitter.com/CwjULJ6PeI

— Seyed Abbas Araghchi (@araghchi) June 3, 2026

President Donald Trump is still trying to present some bright spots, telling NY Post he believes the situation in the Strait of Hormuz will "resolve itself fairly quickly" and went so far to say he expects to meet with Iran's supreme leader "at some point."

Major Attack on Kuwait International Airport: One Dead, 63 Injured

Kuwait International Airport has come under Iranian missile and drone attack on Wednesday, in a significant strike that killed one person and left 63 people injured - according to the country's health ministry, with several of the victims being seriously wounded.

A passenger terminal was directly struck, damaging facilities including diplomatic missions at the airport, Kuwaiti authorities have said. Area hospitals conducted seven major emergency surgeries following the incident, underscoring that it was a mass casualty event.

via The Telegraph

Kuwaiti defense ministry spokesperson Brig Gen Saud Abdulaziz Al-Atwan described the attack as "criminal Iranian aggression which resulted in significant material damage to the building and injuries." It confirmed engaging 13 missiles and 17 drones total which were fired from Iran. 

Civil aviation authorities immediately suspended traffic and transferred arriving flights to separate unaffected airports after "terminal one came under Iranian attacks causing casualties and damage." The cross-border airport attack came after violent exchanges of fire between the US and Iran, which at first looked like limited one-off incidents, but then became an extended tit-for-tat.

The Overnight Catalyst: US-Iran Exchange Fire in Hormuz

Overnight, the US military deployed a Hellfire missile to disable a tanker attempting to bypass the American blockade in the Strait of Hormuz. Following the intercept, American forces engaged in a wider kinetic exchange, stating they repelled subsequent Iranian reprisal strikes across the region and launched retaliatory attacks against military sites on Iran’s Qeshm Island.

In response, Iran’s Islamic Revolutionary Guards Corps (IRGC) claimed it launched a missile and drone barrage targeting the U.S. Fifth Fleet headquarters in Bahrain - an assertion that Central Command (CENTCOM) has explicitly denied. The IRGC had also sent several missiles on two US bases in Kuwait, which were said to have been intercepted.

Serous damage and chaos at Kuwait International Airport:

⚡️#UPDATE Iran bombs Kuwait International Airport pic.twitter.com/beTFw6Lyuv

— War Monitor (@WarMonitors) June 3, 2026 GCC Blasts 'Cowardly Attacks'

The Gulf Cooperation Council has in response slammed Iran for their "ongoing aggression" against member states Bahrain and Kuwait, denouncing the "cowardly attacks on civilian objects" which mark a "dangerous and unprecedented escalation."

But Tehran is not backing down and is instead issuing further hardline warnings and threats, per Al Jazeera citing state media:

Iran’s Revolutionary Guard says retaliatory strikes "should serve as a lesson" for the United States after it fired a barrage of missiles and drones at Kuwait and Bahrain.

While Iran's foreign ministry is warning that the overnight US assault on Qeshm Island continues a severe breach of the ceasefire, President Trump is saying that "conversations between us have been going on continuously" - in reference to the Iranians.

Kuwait's civil aviation authority confirmed Iranian drones and missiles hit the T1 terminal at Kuwait International Airport. Several people were injured and the building sustained severe damage. Commercial flights have been halted. https://t.co/fbFhjSofIY pic.twitter.com/zOz83Ba6cy

— Open Source Intel (@Osint613) June 3, 2026 Overnight Headlines

More latest developments via Newsquawk...

• Explosions were heard near Qeshm Island in Iran on Wednesday morning.
• Kuwait's Army announced its air defences were intercepting hostile missile and drone attacks, while reports noted that two US bases were targeted in Kuwait, with explosions in the Ali al-Salem and Arifjan bases where US soldiers are stationed. Furthermore, air raid sirens sounded in the UAE and Saudi Arabia, with explosions also reported in Saudi Arabia, while explosions were heard in Qamishli, Syria, and earlier reports noted multiple explosions in the centre of Iraqi Kurdistan with the headquarters of anti-Iranian separatist groups targeted.
• IRGC said the US attacked Qeshm Island, and in response, Iran carried out precise and intensive missile strikes on US bases in Kuwait, while it warned further US aggression will be met with a seismic, crushing and decisive response.
• IRGC said the headquarters of the US 5th Fleet in Bahrain was attacked by missiles and drones from the IRGC Aerospace Force, while it targeted a US-affiliated vessel named Panaya with missiles and clarified the recent attack was in retaliation for the US targeting an IRGC communications tower in the south of Qeshm Island.
• US CENTCOM said Iran launched several ballistic missiles towards neighbours and that forces successfully defeated multiple Iranian missiles, while US forces had conducted strikes on Qeshm Island in response to attempted attacks by Iran. CENTCOM stated that forces shot down three one-way attack drones launched by Iran toward civilian mariners that were rightfully transiting regional waters, and US forces also conducted self-defence strikes on an Iranian military ground control station on Qeshm Island. Furthermore, it denied IRGC claims that Iran struck the 5th Fleet HQ in Bahrain and a US airbase in the region, and stated that all Iranian attacks on US forces failed.
• US CENTCOM says forces disabled a Botswana-flagged unladen oil tanker that was attempting to sail toward an Iranian port on the Arabian Gulf on June 2nd. Says: US aircraft disabled the vessel by firing a Hellfire missile into the ship’s engine room, preventing the tanker from reaching Iran.
• US President Trump is pushing Iran to make firmer nuclear commitments and wants nuclear concessions in writing from Iran, according to ABC News.
• US Secretary of State Rubio said that Iran has mined large segments of the Hormuz Strait. Rubio stated that nuclear negotiations with Iran were highly complicated and technical, which would therefore take time, while he added that the war with Iran had made interactions with Tehran more complicated, but also commented that the "war in Iran is over".
• Iran's Foreign Ministry condemned the US attacks on Iranian tanker and Qeshm island. The Foreign Ministry "notes the direct and clear responsibility of the rulers of Kuwait and Bahrain for last night’s aggressive acts."
• Hardline Iranian lawmaker called for stronger military response to US strikes, Al Jazeera reported.
• Kuwait’s General Civil Aviation Authority said an emergency plan at Kuwait International Airport was activated after Terminal 1 was targeted by Iranian drones and missiles.
• Hezbollah attacked an Israeli command post in southern Lebanon with a drone strike, which wounded eight Israeli soldiers, according to SNN.

Tyler Durden Wed, 06/03/2026 - 22:45

US Govt. Lab Launches Advanced Battery Lab To Help Power Grid

Authored by Georgina Jedikovska via Interesting Engineering,

The US has recently launched a new battery production line, which is expected to help researchers develop safer and cheaper energy storage technologies for the electric grid.

PNNL's new prismatic cell line will allow researchers and industry partners to create, test and demonstrate real-world prismatic cells at an industrially relevant scale. (Andrea Starr/Pacific Northwest National Laboratory) 

The new line is housed at the Grid Storage Launchpad (GSL), a 93,000-square-foot research facility. It is run by the Department of Energy's (DOE) Pacific Northwest National Laboratory (PNNL) in Richland, Washington State.

According to PNNL, the newly commissioned production line features a total of 16 pieces of equipment inside a 1,400-square-foot laboratory. It is reportedly the first prismatic battery cell production line at a US national laboratory.

Researchers at PNNL pointed out that it will allow them to manufacture, test, and validate advanced battery designs at an industrially relevant scale. "This helps our researchers bridge the gap between science and industry," Adam Jivelekas, GSL operations manager, said.

A New Grid Storage Hub

The line will produce prismatic battery cells. These are rectangular and larger than cylindrical cells, and shaped like a nine-volt battery (9V). As a result, they contain more energy per cell. Developed with a heavier metal casing, they are less prone to overheating, which makes them increasingly popular for storing energy on the electric grid.

Mark Weller, PhD, a PNNL materials scientist and the principal investigator of the project, explained that metal transfers heat more efficiently than most materials. This allows these batteries to cool more easily. "If you have better heat transport, if the cells are more mechanically uniform, if they're packed more efficiently, all those things can translate to not just higher safety, but lower cost," he added.

In addition, their rectangular shape means they can be stacked neatly together. This reduces wasted space compared to cylindrical alternatives. Efficient packing helps boost energy density at the pack level.

As per Jivelekas, the facility will help speed up the transition from battery research to production. "We can help external researchers or industry partners test and validate their prismatic cell designs," he pointed out.

Start Of Operations

PNNL noted that the facility is located inside a specialized dry laboratory, where humidity levels are kept lower than those found in some of the driest places on the planet. Maintaining these conditions is critical, as trace levels of moisture can degrade the sensitive battery components.

The facility wrapped up testing earlier this year. The scientists are now preparing validation projects intended to demonstrate its capabilities. Weller emphasized that the real test is proving it can be used to consistently manufacture high-quality prismatic cells.

"Making a coin cell takes a few milligrams of material; making a prismatic cell takes at least a kilogram," he elaborated in a press release. "When you scale up like that, you can't assume that a chemistry that worked well in a coin cell will work just as well in a prismatic cell."

To demonstrate the approach, the research team will produce and evaluate two promising battery chemistries to use in prismatic cells. These include sodium-ion and lithium-iron-phosphate (LFP).

Following production, the researchers will submit these two prismatic cell types to a number of tests to evaluate their performance and safety. "With this capability, we can do the research and development and pilot-scale testing that is difficult for companies to justify and help facilitate a smoother handoff to get advanced battery concepts to market," Weller concluded.

Tyler Durden Wed, 06/03/2026 - 22:35

Samsung Joins Blue-State Exodus, Moves U.S. HQ From New Jersey To Texas

We're still trying to settle on a name for the new "Rust Belt" for blue states, where high taxes, de-growth climate policies, permitting paralysis, and an obsession with woke governance have sparked a historic outflow of people, businesses, and capital to red states.

The old Rust Belt was hollowed out by decades of deindustrialization. This new version in blue states is being hollowed out by self-inflicted progressive policy failures after policy failures after policy failures.

The latest, and one of the most abrupt examples, is South Korean tech giant Samsung Electronics shifting its U.S. headquarters from lefty-controlled New Jersey to red-state Texas, which is governed by common sense.

Samsung is moving its U.S. headquarters to its existing campus in Plano, Texas.

Samsung Electronics America is abandoning its brand-new, 270,000 SF North Jersey headquarters after just eight months to consolidate operations in Plano, Texas.

The abrupt exit of 1,000 corporate… pic.twitter.com/uz9joDU3Dh

— The Tenant Advisor (@CoyDavidsonCRE) June 2, 2026

"Samsung Electronics America Inc. is undergoing a business transformation designed to better position our organization for long-term growth and future success. As part of this effort, we are relocating our U.S. headquarters from New Jersey to our existing campus in Plano, Texas, building on our 30-year presence in the state," the company said in a statement. "The transition, which will be completed by the end of the year, is intended to strengthen alignment across teams and offices, and sharpen our focus on the areas that will drive the greatest impact for our customers, partners, and business."

The statement by the memory chip giant did not explain why they're relocating their US headquarters. But we can only guess what it came down to: an unfavorable business environment.

New Jersey has one of the highest corporate tax burdens in the US, coming in at 9% for companies with more than $100,000 in total net income. Smaller companies pay lower rates of 7.5% or 6.5%, depending on income.

For mega corporations, the rate can be even higher. New Jersey added a 2.5% Corporate Transit Fee on businesses with more than $10 million in taxable net income allocated to the state, bringing the effective top rate to 11.5% for those companies.

Samsung's decision was most likely rooted in Texas' long-standing policy of no corporate income tax.

"Imagine turning on the morning news in Texas and watching them celebrate jobs leaving New Jersey," NJ Assembly GOP wrote on X earlier today, adding, "The numbers are damning: New Jersey has the highest corporate tax rate in the nation. Texas has no corporate income tax. We've introduced the fixes. Democrats blocked everyone. Texas gets the jobs. New Jersey gets to keep old ribbon-cutting photos."

Imagine turning on the morning news in Texas and watching them celebrate jobs leaving New Jersey.

That's exactly what @GoodDayFox4 and @FOX4 are doing after Samsung announced it's moving its U.S. headquarters from New Jersey to Texas.

The numbers are damning: New Jersey has the… pic.twitter.com/nY9F33fZpZ

— NJ Assembly GOP (@NJAssemblyGOP) June 3, 2026

Another X user noted, "Whether it's Samsung, Mercedes-Benz, Hertz, ExxonMobil, or other major employers, the message is becoming impossible to ignore: businesses are voting with their feet. And, the Democrats in the State House are not making it any easier for businesses - the legislation or administrative rules as of late has been so anti-business."

Woah! I guess the Samsung folks ran into the executives from Mercedes-Benz, Hertz, ExxonMobil, and Budweiser while they were finding the exit door from New Jersey.

Whether it’s Samsung, Mercedes-Benz, Hertz, ExxonMobil, or other major employers, the message is becoming… https://t.co/LBq3yJvLhN

— Victoria Flynn (@AswVickyFlynn) June 1, 2026

What is significant here is that Samsung opened its headquarters in New Jersey only eight months ago, suggesting that the state's political and economic environment has deteriorated since.

Samsung didn't want to say if New Jersey's economics caused them to move to Texas

WE ALL KNOW IT WAS, Texas has 0% Corporate Tax vs Jersey's worst in the nation 11.5% https://t.co/TChqAk4p62 pic.twitter.com/4GUKLOcnQX

— Wake Up NJ 🇺🇸 New Jersey (@wakeupnj) June 3, 2026

Last month, The Economist published an article titled "Texas Is Becoming America Inc.'s Center of Gravity," pointing out that corporations are voting with their feet and fleeing blue states.

Related:

• Johns Hopkins Finds Blue State Exodus To Persist For Years
• Blue States Are Still Facing A Mass Taxpayer Exodus Long After COVID

Democrats have zero self-awareness that their state-killing policies are only pushing people, companies, and money to red states.

Tyler Durden Wed, 06/03/2026 - 22:10

US Special Ops Fields Caliber-Swapping MK24 Rifle For 7.62 Combat And 6.5 Range

Authored by Aamir Khollam via Interesting Engineering,

A new rifle heading to U.S. special operations forces can switch between 7.62mm NATO and 6.5mm Creedmoor ammunition in roughly a minute, giving operators a way to adapt to changing mission requirements without carrying separate weapon systems.

MK24 modular rifle (LMT Defense on Facebook)

The weapon, known as the MK24 Medium Range Gas Gun Assault (MRGG-A), will begin reaching units before the end of the fiscal year. U.S. Special Operations Command (SOCOM) selected the platform to replace the MK17 SCAR and awarded manufacturer LMT Defense a 10-year, $92 million contract last year. The rifle also supports SOCOM's broader effort to improve performance at longer ranges while maintaining flexibility in the field.

Built For Flexibility

The MK24's defining feature is its quick-change barrel system. Operators can swap between 7.62mm NATO and 6.5mm Creedmoor configurations in about a minute, allowing the weapon to adapt to different operational needs.

The requirement emerged from real-world deployment challenges. U.S. forces frequently operate alongside partner militaries that rely on different ammunition stocks. By allowing rapid caliber changes, the MK24 can continue using widely available 7.62mm rounds while giving operators access to 6.5mm Creedmoor when missions demand greater accuracy at distance.

LMT Defense designed the rifle around a 14.5-inch barrel, creating a package closer in size to an M4 carbine. Despite its compact footprint, the weapon aims to deliver the performance expected from larger precision-focused systems.

Why 6.5 Creedmoor

The adoption of 6.5mm Creedmoor reflects years of testing by SOCOM as it evaluated alternatives to legacy military cartridges. The command examined nearly two dozen ammunition types and reportedly found that 6.5mm Creedmoor delivered some of the strongest overall performance at ranges approaching 1,000 meters.

That advantage has attracted growing interest across the military. While 7.62mm NATO remains a mainstay of U.S. forces, newer cartridges have demonstrated improved long-range accuracy and energy retention. The Army has already started introducing its Next Generation Squad Weapons chambered in 6.8x51mm as part of a similar modernization effort.

For SOCOM, the shift is not simply about replacing ammunition. The command has spent several years searching for weapon systems that can engage targets farther away while reducing logistical burdens on deployed units.

Expanding Long-Range Capabilities

The MK24 is one piece of a wider small-arms modernization program. In recent years, SOCOM has explored new rifles and machine guns capable of extending engagement distances beyond those of existing platforms.

Those efforts resulted in contracts for a new 6.5mm sniper rifle from Geissele Automatics and a lightweight machine gun chambered in .338 Norma Magnum from Sig Sauer. Although fielding of the machine gun has been paused, the programs reflect SOCOM's interest in cartridges that offer greater effectiveness at extended ranges while reducing system weight.

Officials involved with the program have highlighted the MK24's accuracy and adaptability as major advantages. Beyond replacing the MK17 SCAR, the rifle introduces a modular approach that allows a single platform to fill multiple roles. As fielding begins, the weapon will give special operations units the ability to move between 7.62mm combat loads and 6.5mm long-range configurations with minimal disruption in the field.

Tyler Durden Wed, 06/03/2026 - 21:45

Lefty Tech Rag Panics As Manhattan Institute Pivots From Killing DEI To Crushing NGO-Funded Riots

Left-leaning Condé Nast, through Wired, appears to be running narrative cover for the protest-industrial complex, gaslighting readers over efforts to impose real penalties on chaos and disorder stemming from protests and riots.

Wired reporter Ali Winston's target is the Manhattan Institute. She appears to be upset that the Manhattan Institute is pushing for new state laws that make vandalism, blocking roadways, and trespassing during riots and protests felony offenses.

❗️ TOTAL anarchy in Los Angeles

Rioters are smashing windows, setting cars on FIRE https://t.co/ie6krxi0wk pic.twitter.com/a55XgmAwIm

— Rapid Report (@RapidReport2025) June 9, 2025

"The Manhattan Institute, cofounded in 1978 by former Central Intelligence Agency director William Casey, is in the midst of a yearlong campaign to pass state-level legislation reclassifying minor crimes like vandalism, blocking a roadway, or trespassing during a protest as felonies that would carry 18-month prison sentences as punishment," Winston wrote in the article.

Denver, Colo. (March 28) — Far-left extremists riot at the “No Kings” anti-Trump rally. pic.twitter.com/ny1EESzIq2

— Andy Ngo (@MrAndyNgo) March 28, 2026

That proposal comes as highly organized protest networks have repeatedly used street blockades, property destruction, vehicle burnings, and storefront attacks as pressure tactics, often under the banner of revolutionary Marxist activism and with funding channels routed through opaque NGO networks.

It boggles my mind how at ANY single moment, for ANY reason, HUNDREDS of Leftists can show up instantly with supplies and riot for WEEKS.

Normal people have to rearrange their entire day to show up anywhere…

Are these people just always on call?!!!!pic.twitter.com/OrRDGHojQ7

— Matt Van Swol (@mattvanswol) May 31, 2026

Can someone please explain to me HOW ON EARTH it's possible for someone in Newark NJ to riot, scream, and protest for 5 STRAIGHT DAYS????

How does one ENDLESSLY RIOT...

...and still hold down a job to feed their family?!!!!!pic.twitter.com/3Z0pgiFZLA

— Matt Van Swol (@mattvanswol) May 28, 2026

Jesse Arm, vice president of external affairs at the Manhattan Institute, responded to Wired's X post promoting Winston's hit piece on the institution, writing:

In America, free speech rights do not entitle you to block roads, destroy property, illegally trespass, or harass the public—all while hiding behind a mask and using resources from anti-Western funders to wage a campaign of crime designed to coerce the majority into following the whims of a radical minority.

You should be punished for such conduct. And we'll continue making that case.

If you enjoyed watching the @ManhattanInst take an absolute sledgehammer to DEI, you're going to love seeing us eviscerate civil terrorism.

In America, free speech rights do not entitle you to block roads, destroy property, illegally trespass, or harass the public—all while… https://t.co/kOFKO7I0CY pic.twitter.com/5ndQjwx6Op

— Jesse Arm (@Jesse_Leg) June 2, 2026

Someone has to remind the Democratic Party and their NGO and activist network that the First Amendment protects peaceful speech, assembly, protest, signs, chants, marches, and petitioning the government. It does not give someone a free pass to commit ordinary crimes, which has been an ongoing issue for years with the creep of revolutionary Marxism across the nonprofit world...

Did any BLM protesters get 22 years in prison for burning down our country for months on end or is that only for Trump supporters? pic.twitter.com/wsWkn25ONJ

— Libs of TikTok (@libsoftiktok) September 6, 2023

Wired's X post was ratio'd, with commentators saying....

"...minor crimes like vandalism, blocking a roadway, or trespassing during a protest as felonies that would carry 18-month prison sentences as punishment."

So, actual crimes that have nothing to do with free speech, got it. Good for them.

— DaveCoffee ☕ (@DaveCothran) June 2, 2026

Somehow engaging in protected speech becomes a protection from being arrested for committing crimes?

That sounds like leftist nonsense.

— Angus (@dd_Angus) June 2, 2026

you’re basically writing @ManhattanInst’s donor impact report for them

— Neeraja Deshpande (@neerajadeshp) June 2, 2026

Rioting, violent assault, and vandalism are not “protected speech”.

— Anton Marcel (@Anton__Marcel) June 2, 2026

Winston noted that the Manhattan Institute's push to criminalize forms of nonviolent disobedience as "civil terrorism" comes amid a broader Trump administration effort to crack down on far-left NGOs, as well as foreign influence operations operating through the nonprofit world to sow chaos deep within the nation.

Treasury Secretary Scott Bessent signaled last week that the crackdown on revolutionary NGOs is ongoing. We made substantial progress, and I think in the weeks and months ahead, we are going to have a lot to report."

🚨 WOW! Scott Bessent just revealed the IRS has moved to make NGOs LIABLE for violent activity committed by their grant recipients like Antifa

George Soros has been put on NOTICE.

"The IRS is now giving guidance on the Form 990, which nonprofits they have to file. We are going… pic.twitter.com/15ToheHbwa

— Nick Sortor (@nicksortor) May 28, 2026

Democrats might need to reread the First Amendment. It protects only peaceful assembly, as the Supreme Court has ruled. Blocking critical infrastructure, attacking police officers, burning cars and buildings, and using violence of any kind is not protected "speech" in the US.

Even the globalists at The Atlantic have had to admit the uncomfortable truth for Democrats...

Punish crime. End of story.

Tyler Durden Wed, 06/03/2026 - 21:20