Authored by Charles Kennedy via OilPrice.com,
Grid operators are concerned that the Chinese drive to hike the share of renewable electricity powering AI would raise the risks for power firms as peak demand at data centers is difficult to forecast.
Industry analysts and officials have told Reuters that the Chinese strategic priority of having renewables power the majority of electricity demand at data centers by 2030 may not be feasible.
“From what we understand, they (data centers) cannot really adjust power consumption load much,” Reuters quoted Pei Shanpeng, a director of Chinese power firm State Power Investment Corporation, as telling attendees at a recent industry conference in Beijing.
“GPUs are very expensive, so once they are purchased, operators want to use them as quickly and as intensively as possible,” the official added.
China plans to use massively its renewable energy boom to power the data centers.
The country has just launched the world’s first offshore wind-powered underwater data center, using seawater cooling and renewable electricity to reduce energy, water, and land requirements. The 24 MW-capacity Shanghai Lingang undersea data center demonstration was developed by HiCloud Technology and the state-owned China Communications Construction.
A report from last year by the International Energy Agency (IEA) stated that the data center electricity supply in China was dominated by coal with a near 70% share as of 2025, followed by renewables with nearly 20%, nuclear close to 10%, and natural gas accounting for the remainder.
Solar PV and wind would add nearly 90 TWh of additional electricity for data centers by 2030, “supported by an increase in the share of renewables in the grid electricity mix, provincial co-location mandates and policies to prioritise the construction of data centres in renewables-rich western China,” the IEA said.
However, analysts and industry officials say the data center sector isn’t a good fit for renewable energy because of the lack of visibility about peak demand from these power-sucking centers.
Tyler Durden Mon, 06/22/2026 - 20:55As soon as the national average for 87-octane gasoline at the pump dipped below the politically sensitive $4-a-gallon level early last week, we observed multiple institutional desks begin to forecast that the light at the end of the tunnel was beginning to materialize for consumers, especially working-class households that have been financially battered by surging fuel prices over the past several months.
UBS analyst Mark Paski told clients about "early signs of a turn in U.S. consumer discretionary."
Then, Piper Sandler Chief Global Economist Nancy Lazar told clients, "If inflation has indeed peaked, that will boost real incomes (nominal incomes have been solid), a positive for both real consumer spending and housing, but don't expect robust growth in either."
Gathering more ground-level intelligence about possible consumer sentiment shifts, or at least the early chapters of it, Wolfe Research polled 270 industry contacts on the consumer outlook this summer.
"Optimism has picked-up a bit relative to April/May, but there are persistent concerns about higher gas prices, inflation reaccelerating & price competition in the 2H," Wolfe Research analyst Greg Badishkanian wrote.
Badishkanian continued, "Our checks occurred last week and at that point optimism hadn't reached pre-war levels yet. They were still concerned that if the conflict dragged on, it would hurt their respective industries."
He noted, "When we asked some of the operators within more discretionary segments about the impact of a potential lasting peace deal, they all thought it would boost sales and profitability in the coming quarter or two."
Where has operator optimism changed the most versus two months ago?
The read-through: Consumer sentiment is stabilizing, but the improvement is uneven. The weakest categories are RV dealers, home improvement, boat dealers, beer, auto dealers, fast food, and casual dining, all of which remain negative.
However, the strongest categories are Harley dealers, powersports, ag dealers, short-term rentals, convenience stores, and lodging.
The Harley outperformance is an outlier.
Operators expected that if the US-Iran conflict persisted into July, the impact would only be slightly negative.
Badishkanian and his team spoke with operators across various industries. Here is what they had to say
Leisure
We met with Harley's (HOG) investor relations to discuss trends in the business and conversation primarily focusing around retail sales, sustainability of the business, inventories, & new product launches. HOG highlighted that retail sales are accelerating, and dealer sentiment is improving for them, but there is still work to be done in order to maintain the momentum of the top-line. The team reiterated that inventories remain healthy worldwide, and mgm has prioritized destocking. The launches of the Sprint and Sportster models were brought up in the conversation as key initiatives for maintaining momentum into 2027. Mgmt highlighted that despite the newer, lower-priced bikes being lower margin they expect them to profitable and bring in a newer entry level customer to Harley.
We caught up with Norwegian's (NCLH) VP of Investor Relations & Corporate Communications this week when we talked through the 3Q yields pressure, revenue management, marketing strategy, the Great Stirrup Cay initiatives, and shore side cost management. NCLH still expects 3Q yields to be under the most pressure for the full year, and the company has started to shift towards getting 2027 on the right trajectory. The Great Stirrup Cay Water Park and Pier are set to open on September 4th, with an expectation for 25bps of yield lift in 2026 and 75bps for the full year '27. The team also highlighted a greater focus on marketing spend, & corporate costs shoreside.
Restaurants
Yum! Brands (YUM) has entered definitive agreements to sell Pizza Hut for $2.7B. Pizza Hut (excluding Pizza Hut China) will be acquired by LongRange capital for ~$1.5B. In addition, Pizza Hut China will be acquired by Yum! China for ~ $1.2B. The company will continue to provide Byte (its proprietary tech platform), as well as select corporate services to Pizza Hut ex-China. Yum! expects the fees from these services to offset corporate G&A expenses historically allocated to Pizza Hut. Both transactions are expected to close in 3Q26.
FAT Brands completed the final step of its bankruptcy restructuring, with FBG Bid Co. acquiring assets tied to 13 concepts for about $595 million and transferring more than 1,700 restaurants to a lender-backed group. The company filed for Chapter 11 in January under roughly $1.5 billion in debt. Twin Peaks was sold separately for $359.5 million, and Smokey Bones ceased operations after no buyer was found.
Food Retailers
Kroger (KR) reported roughly in-line 1Q results with expectations and reaffirmed its FY outlook. ID sales ex. fuel increased +1.0% (64bps headwind from egg deflation) vs consensus at +0.9% and decelerated 60bps on a 2-yr basis from the prior quarter. Adj EPS of $1.58 missed consensus at $1.59. Kroger continues to expect ID sales of +1.0-2.0% (including ~130 bps headwind from IRA) with the midpoint in line with consensus at +1.5%. Operating profit of $5.0-5.2bn is 3.4% above consensus of $4.93bn, as questions persist about the level of price investments to come. The EPS range of $5.10 to $5.30 is 3c below consensus.
Ahold Delhaize (Not Covered) announced the nomination of Claire Peters as the new CEO of Ahold Delhaize USA. Ahold Delhaize US operates Food Lion, Giant, Hannaford and Stop & Shop supermarket locations in the US. Claire most recently served as the VP fo Worldwide Fresh at Amazon, but has also held roles at Woolworth's Group & Tesco.
Broadlines & Hardlines
The Joint Center for Housing Studies released their 2026 State of Nation's Housing report this week. The report and webcast to follow were cautious as the affordability crisis continues to worsen, remodel spend is still above pre-COVID levels and pull forward remains a challenge for the industry. Median Home Prices remain elevated vs median household income, at nearly 2008 highs, and affordable units supply continues to be constrained. Click here for our full takeaways and data parsing.
Target (TGT) continues to accelerate the pace of change in the business. One of the best examples of this is fun 101, where Target is allowing merchants to have more runway in these categories to make changes. Recent announcements like the Issac Mizrahi partnership, Olivia Rodrigo's exclusive music launch, and even increased focus on Trading Cards are driving customers back to TGT. We think further leaning into Fun 101 and these cultural events will be an important part of Target's go-forward strategy and whether the business can maintain momentum. Read Spencer's full takeaways here.
La-Z-Boy (LZB; not covered), a furniture manufacturer, reported F'4Q results which beat Street estimates, with F'1Q guidance also ahead of consensus. Management believes they have levers to drive growth in their business, while the timing of a return to growth in the broader industry remains uncertain, but remain optimistic about an eventual rebound in furniture and home furnishings, which historically grew +3% to +4%
CarMax (KMX; not covered) posted F'1Q (ending May 31st) results ahead of expectations with EPS of $1.31 vs FC 97c. Sales were up +6.2% to $8.01bn vs FC for $7.42bn, led by higher wholesale revenue, which grew +14% (units: +8.4%; avg selling price: +5.1%). Used unit comps were also better than feared at -0.8% vs FC -2.7%
A consumer inflection point appears to be approaching, but the timing still largely hinges on fuel prices staying well below the $4 national average.
Tyler Durden Mon, 06/22/2026 - 20:30Authored by Patti Johnson via The Burning Platform blog,
That “black pill moment” is arriving faster than many realize. Not primarily through sweeping new government mandates, but through private companies quietly normalizing biometric data collection under the banners of “security,” “fraud prevention,” and “child protection.” They are erecting the infrastructure for a world where you cannot easily participate in daily life, commerce, or even basic online access without surrendering your face, your license scan, or other biometrics. Once the systems exist and the data flows, laws can simply ratify what private actors have already made routine.
In a recent commentary “Digital ID Black Pill Moment”, I highlighted a sobering reality: 186 out of 198 countries already have digital ID systems in place. Only a shrinking handful of nations lack foundational national digital IDs. As I wrote, “the global push for digital IDs is far advanced, likely past the point of no return, aligning with the UN’s 2030 goal of universal legal identity and enabling a globalist digital currency system that could control access to everything.”
Facebook/Meta: Selfie or Stay Locked OutGovernment mandates are not required to finish building the digital surveillance prison. Citizens are willingly submitting their biometrics to access social media sites. For example, I am no longer on Facebook. They banned me during the Covid era after I began sharing information about the true contents of the shots and alternative treatments. A friend just sent me a Facebook post and I could not view it without taking a selfie and sending it to FB. No way was I going to comply.
Try viewing certain Facebook posts or recovering a flagged account, and you may hit this wall. Users are increasingly prompted to submit a video selfie turning their head in different directions so the system can map facial geometry to “prove you’re a real person” or restore access. The company states it uses this to combat scams and compromised accounts, and claims the video is deleted after verification.
Here is what the prompt looks like:
This is not a rare case. It is quickly becoming the normal way companies handle account recovery, new account setup, suspected suspicious activity, or even basic access to articles and information on many websites. Your facial biometric data is sent to a private company that already holds huge amounts of user information and is under constant pressure and often partners with governments and international standards organizations.
Uber: Selfie + Driver’s License Scan Just to RideMy husband recently tried to order an Uber ride and was required to submit a selfie plus front and back photos of his driver’s license before the app would proceed. Uber’s official materials describe identity verification (including selfies matched via facial recognition) primarily for drivers to prevent account sharing, and for riders it is often framed as optional for a “verified badge.” Yet real users are encountering these hard prompts in practice.
Here are examples of the verification flows Uber and similar platforms use:
The stated reason is safety and trust on the platform. The practical effect is another private company harvesting and cross-referencing your facial biometrics and government ID data.
Banking, Finance, Telecom, and BeyondMajor banks now routinely use facial recognition or selfie verification for mobile app logins, high-value transfers, account opening (a process known as KYC, or “Know Your Customer” identity verification required by banking regulations), and fraud checks. Telecom providers require selfies for SIM card swaps (replacing your phone’s Subscriber Identity Module card) or account modifications. Gig economy platforms (such as ride-sharing or delivery services like Uber, DoorDash, or similar) use third-party services that demand selfie plus ID document verification. Some retail and payment systems are piloting biometric checkout.
Here is the kind of selfie/biometric prompt users see in identity verification flows used by banks and fintechs:
Proponents say this reduces identity theft, speeds up processes, and improves security compared to passwords or one-time codes. The result, however, is the same: your face becomes the key to your money and services.
Driver’s Licenses Already Contain Biometric DataEvery U.S. state requires a facial photograph on driver’s licenses and state IDs.
That photo is biometric data. Many states’ DMV databases feed into facial recognition systems used by law enforcement. REAL ID standards and emerging mobile driver’s licenses (mDLs) are digitizing and enhancing this further. Eighteen states already have biometric-enabled digital driver’s licenses.
Age Verification Laws Accelerate the TrendFlorida’s HB 3 (Online Protections for Minors) restricts social media access for children under 14 and requires parental consent for 14- and 15-year-olds. To comply, platforms must verify ages using government ID or biometric data. The result is that adults, too, will need to submit ID or facial biometrics simply to access platforms like TikTok, Instagram, and others. Similar requirements are advancing under the UK’s Online Safety Act, which mandates robust age verification, including facial age estimation, for sites hosting potentially harmful or pornographic content, with ripple effects across social media.
Parents Should be the Gatekeepers Not the GovernmentProponents argue these measures protect children from predators, explicit content, and addictive algorithms, while giving parents better tools to manage access. I believe the real solution lies with parents themselves. Parents should be the primary gatekeepers, setting firm limits and supervising where their children go online.
Today’s children, immersed in cell phones from a young age, are losing the ability to communicate effectively on a normal, personal level. If I were raising children now, I would not give them a cell phone. We grew up with perfectly fulfilling childhoods without them. Instead of relying on government-mandated biometric checkpoints, we should return responsibility to families. Yet the architecture being built creates a universal biometric gateway for internet participation: one that affects everyone, not just minors.
The Bigger Picture: Agenda 2030 and the “Cannot Buy or Sell” InfrastructureThis is not happening in a vacuum. It aligns with the UN’s Sustainable Development Goal 16.9 push for universal legal identity by 2030 and the broader frameworks of the Great Reset / Agenda 2030. Private companies are doing the expensive, politically risky work of normalizing biometric surrender and building interoperable databases. Once the data exists at scale, faces linked to licenses, accounts, transactions, and online activity, adding legal requirements for purchases, services, or internet access becomes trivial.
We are told it is all for safety, convenience, fraud prevention, and protecting the vulnerable. Yet the cumulative effect is a world in which opting out becomes increasingly difficult, anonymity erodes, and every interaction can be tracked, verified, and potentially scored or restricted through biometric identifiers.
The infrastructure for systems in which you “cannot buy or sell without an ID” is being assembled one prompted selfie at a time by Meta, Uber, banks, app developers, and verification vendors. This often happens before governments even pass the final laws.
We have been warned. The question now is whether we will continue feeding the system our most personal biometric data in the name of convenience, or whether we will recognize the trap while there is still room to resist, opt out where possible, demand real privacy protections, and support alternatives that do not require surrendering our faces to participate in society.
Tyler Durden Mon, 06/22/2026 - 20:05