Category: Business

NEW YORK — Wall Street experienced its most impressive surge in two months Thursday, while petroleum prices tumbled after President Donald Trump withdrew his threat to launch military strikes against Iran. The development sparked optimism about a possible agreement that could restore normal global petroleum distribution.

The S&P 500 climbed 1.8%, recovering from consecutive declines that had pulled the index back to early May levels. The Dow Jones Industrial Average surged 929 points, gaining 1.9%, while the Nasdaq composite advanced 2.5%.

Markets shifted dramatically upward during midday sessions following Trump’s announcement on his social media platform that “discussions with the Islamic Republic of Iran have been brought to the highest level of Iranian leadership and approved” and that the timing and location of a signing will “be announced shortly.”

An agreement to conclude the conflict with Iran might reopen the Strait of Hormuz and restore petroleum tanker shipments from the Persian Gulf to global markets. Benchmark U.S. crude prices dropped 2.6% to $87.71 per barrel. Brent crude, the global benchmark, declined 2.9% to $90.38, although it remains elevated from its approximately $70 pre-war level.

Concerns had intensified as the United States and Iran conducted strikes in recent days, jeopardizing a fragile ceasefire that had lasted over a month.

Elevated petroleum costs from the Iran conflict have driven inflation sharply higher, and Thursday’s data revealed that U.S. wholesale prices rose more significantly in May than economists had projected. The impact extends globally, with the European Central Bank on Thursday becoming the first major central bank to increase interest rates in response.

Elevated rates can control inflation but also decelerate economic growth and reduce values for various investments, including equities and digital currencies. They particularly affect investments considered overpriced, with some analysts labeling the artificial-intelligence sector a bubble where investment expanded excessively.

Major fluctuations in AI company shares have driven U.S. market volatility over recent days, as these stocks moved from achieving new highs to suddenly declining. The primary concern involves whether such securities rose too rapidly due to AI enthusiasm, with their volatile movements sometimes reversing direction hourly.

AI securities had already begun recovering Thursday morning before Trump’s Iran announcement.

Marvell Technology gained 11.1% after a turbulent period that included a 16.7% plunge, a 9.6% surge, then consecutive daily drops exceeding 5%. Previously, it had achieved a historic single-day jump of 32.5% when Nvidia CEO Jensen Huang suggested it could become “the next trillion-dollar company.” Its valuation exceeded $190 billion at that time.

Semiconductor manufacturing companies posted some of the market’s largest gains. Lam Research jumped 12.7%, while KLA advanced 12.9%.

These gains helped counterbalance Oracle’s 8.5% decline. The company reported quarterly profits exceeding analyst expectations but announced plans to raise $40 billion this fiscal year through debt and equity sales. This follows last year’s $48 billion fundraising effort to finance AI investments.

Other corporations have recently faced stock penalties for announcing substantial AI spending, as questions persist about whether such investments will generate the profits and productivity improvements that AI supporters promise.

Overall, the S&P 500 gained 127.31 points to 7,394.30. The Dow Jones Industrial Average increased 929.97 to 50,848.75, and the Nasdaq composite added 640.16 to 25,809.66.

In bond markets, Treasury yields fell substantially as declining petroleum prices reduced inflationary pressures. The 10-year Treasury yield dropped to 4.45% from Wednesday’s 4.55%, representing a notable bond market movement.

Sustained petroleum price declines could enable the Federal Reserve to maintain current interest rates this year rather than implementing increases that many traders anticipated due to high inflation and a robust U.S. job market. Following Trump’s announcement, traders reduced expectations for potential federal funds rate increases this year, according to CME Group data.

The Fed might even resume rate reductions under its new chair, Kevin Warsh, if inflation pressures diminish sufficiently. Trump appointed Warsh, and Trump has consistently advocated for lower interest rates.

Smaller company stocks can benefit most from easier interest rates since many require borrowing for growth, and the Russell 2000 index of smallest U.S. stocks led markets with a 3% gain.

International markets showed modest gains in Europe following mixed Asian results.

London’s FTSE 100 rose 0.5%, while Hong Kong’s Hang Seng fell 0.7%, representing two of the day’s more significant global movements.

An aerospace manufacturer is confronting over 30 legal challenges following an incident where a chemical storage tank overheated and nearly exploded, leading to the mass evacuation of approximately 50,000 Orange County, California residents last month.

Debbie Cohran, whose home sits roughly 500 feet (152 meters) from the GKN Aerospace plant in Garden Grove, didn’t receive evacuation notice until hours after the chemical leak began, her legal filing states. Her lawsuit claims she suffered nausea and headaches that persisted for days following the incident.

Melanie Rose Burciaga from neighboring Westminster had recently delivered her first baby and was forced to leave the hospital when evacuation orders were issued, according to her attorney’s lawsuit filing.

Juan Diego Orozco was working on a street repair team in Garden Grove when the tank began overheating. He reported headaches and sought hospital treatment for breathing difficulties and vomiting, his attorney stated.

Over 100 people — including families with pets — along with area businesses are pursuing legal action against the U.K.-based GKN Aerospace, alleging the company failed to properly maintain a secure facility in a densely populated area.

Court filings show ten class action cases in federal court, with 21 additional cases in state court representing between one and 31 plaintiffs each. The legal actions demand both compensatory and punitive damages.

Sarah Hasse Blodgett, a spokesperson for GKN Aerospace, did not provide an immediate response Thursday when asked about the lawsuits and their allegations.

Adam Zimmerman, a professor at the University of Southern California Gould School of Law who is not involved in the litigation, said the federal cases will likely be consolidated and the state cases will likely be moved under one judge, to ensure they are handled efficiently. Some of those state lawsuits may be moved to federal court, he said.

Federal scrutiny intensified Wednesday when FBI agents executed a search warrant at the facility to gather documents and records concerning the “storage, use, or disposal” of methyl methacrylate, the substance stored in the problematic tank.

The Environmental Protection Agency announced Thursday it had partnered with the FBI to “search for and seize evidence of potential federal environmental crimes.” The agency refused to elaborate, stating it doesn’t discuss ongoing criminal investigations.

GKN Aerospace manufactures cockpit windows, canopies and windshields. The overheating tank, which began malfunctioning on May 21, held between 6,000 and 7,000 gallons (22,700 to 26,500 liters) of methyl methacrylate, a highly combustible substance. This liquid serves in producing plastics and coatings like Plexiglas.

Health authorities reported no contamination or fumes escaped, and they intend to conduct air monitoring for several months. Contact with the chemical can result in severe breathing issues, neurological complications and irritation to skin, eyes and throat, the EPA warns.

While the tank avoided explosion, thousands of area residents were displaced from their homes for three to five days until emergency crews managed to stabilize the container.

Blodgett stated the company was working with federal investigators.

GKN Aerospace senior vice president Steve Carlin spoke at a community meeting Tuesday, saying he was sorry that the event occurred, and that it was especially unsettling because the company has a long history with the community.

Multiple lawsuits contend the company bore responsibility for maintaining the tank, cooling equipment, valves and monitoring systems to protect community safety.

The legal filings describe how residents were compelled to abandon their homes and cover costs for lodging, meals and other necessities, creating financial hardship. They also report experiencing stress throughout the evacuation and ongoing worries about chemical exposure.

Local businesses also took a hit. The crisis unfolded during Memorial Day weekend — when many restaurants and food service companies bring in some of their best revenue of the year.

“Our data shows approximately 3,000 businesses were forced to shut down because of the evacuation, and at least another 3,000 businesses right outside the evacuation zone while not forced to close, but had their revenue dropped considerably because of the tank failure and evacuation,” said lawyer Richard McCune, who has filed a class action lawsuit on behalf of Big Rob’s Pizzeria and Fruit Caboose Concessions.

Legal representatives say the FBI probe will strengthen their court cases.

“We trust that the search will uncover important information and materials related to this crisis,” said lawyer Sean Litteral, who represents Jonathan Sanchez, a father of two children, including an infant born just days before the crisis.

Elon Musk’s rocket and spacecraft company SpaceX achieved a historic milestone Thursday, completing the largest initial public offering in United States history by setting its share price at $135 each.

The aerospace manufacturer generated a record-breaking $75 billion through the sale of 555.56 million shares, establishing a company valuation of $1.77 trillion – the highest ever recorded for a debut offering. This places the space, satellite and artificial intelligence provider among the world’s most valuable corporations.

When trading begins Friday on the Nasdaq, SpaceX will become the seventh-largest company by market value among U.S.-listed businesses, despite posting losses in the previous year and generating significantly less revenue than other mega-cap corporations.

The pricing announcement represents the culmination of a lengthy process that brought Musk’s most ambitious venture to fruition, even as he challenged conventional financial practices. Some market analysts have raised concerns about whether the company’s elevated valuation can be sustained.

At its current pricing, SpaceX will debut with a higher market value than established companies including JPMorgan Chase, Berkshire Hathaway, Eli Lilly, Meta Platforms, and even Musk’s electric vehicle company Tesla.

The previous record-holder for largest IPO was Saudi Aramco’s December 2019 public debut, which generated $25.6 billion at a $1.71 trillion company value. When adjusted for inflation, Aramco’s offering raised $33.2 billion with a $2.21 trillion valuation.

SpaceX’s $1.77 trillion market value, calculated using 13.08 billion outstanding shares, could increase further if underwriters choose to sell additional shares – a decision typically made within 30 days following the offering. Previous reports indicated SpaceX was targeting a $1.75 trillion valuation.

The company announced its IPO pricing at 3 p.m. EDT (1900 GMT), following the conclusion of its pricing meeting with investment bankers while U.S. markets remained active, through a “free-writing prospectus” submitted to the Securities and Exchange Commission.

A press release followed 30 minutes later. Standard practice involves conducting pricing meetings and announcing IPO prices after regular trading ends at 4 p.m., as securities issuers typically avoid potential market-moving events during active trading hours.

This announcement exemplifies Musk’s approach to executing Wall Street’s most anticipated debut according to his own preferences. SpaceX allocated 30% of shares for individual retail investors – an uncommonly high percentage – and determined Thursday’s share price prior to the traditional roadshow process that bankers and investors typically use for IPO negotiations.

Musk also advocated for expedited index inclusion to expand the investor base for SpaceX stock and established corporate governance structures that maintain substantial founder authority. Following the IPO, Musk will retain 82% ownership of SpaceX.

The U.S. IPO market appears positioned for significant recovery this year after experiencing earlier volatility. Goldman Sachs projects proceeds could increase fourfold to reach a record $160 billion in 2026, supported by a pipeline featuring not only SpaceX but also artificial intelligence companies OpenAI and Anthropic.

Last week, SpaceX announced it has secured a multi-year cloud services partnership with Alphabet’s Google, ensuring computing capacity amid growing industry competition.

Established in 2002, SpaceX describes its mission as “to build the systems and technologies necessary to make life multiplanetary, to understand the true nature of the universe, and to extend the light of consciousness to the stars.” The company estimates its market opportunity at $28.5 trillion, which it characterizes as the largest in human history.

SpaceX’s launch operations have handled more than four-fifths of all mass sent into orbit during the past three years, while its Starlink internet division serves “millions of consumer, enterprise, and government customers across 164 countries, territories and other markets.” Starlink generates the majority of SpaceX’s current revenue.

A substantial portion of its projected addressable market stems from xAI, which many consider secondary to OpenAI and Anthropic, though SpaceX contends the integration of its AI computing infrastructure, its model, and access to real-time data on X “creates a significant strategic advantage.”

Challenges facing the company at its massive valuation include competition from rivals like Jeff Bezos’ Blue Origin, which seeks to accelerate space commercialization and pursue government contracts to develop new markets beyond Earth.

Goldman Sachs, Morgan Stanley, BofA Securities, Citigroup and J.P. Morgan serve as joint book-running managers for the offering.

Elon Musk’s rocket company SpaceX has completed a record-breaking initial public offering, securing $75 billion on Thursday in what marks the largest IPO in global history. The offering significantly surpassed the previous record held by Saudi Aramco’s 2019 public debut.

The aerospace and satellite company is scheduled to begin trading on the Nasdaq exchange Friday, with market analysts predicting this milestone could trigger a series of major technology company public offerings.

Several prominent private technology firms, including the company behind ChatGPT, OpenAI, and its competitor Anthropic, have recently made significant progress toward their own stock market debuts in recent weeks.

The artificial intelligence company OpenAI announced Monday that it had quietly submitted paperwork for a U.S. stock market listing, as investment interest in AI technology continues to surge.

“We have not decided on timing yet; it may be a while because there are things we want to do that are likely easier as a private company,” OpenAI stated.

“But it’s a complicated set of tradeoffs and this gives us the option to go public sooner if that ends up being best.”

According to previous reports, OpenAI is targeting a potential September public offering and has been preparing for a listing that could reach a valuation of up to $1 trillion.

Last month, the company led by Sam Altman successfully defended against a significant legal challenge from Elon Musk, clearing obstacles for its planned stock market entry.

Meanwhile, AI company Anthropic disclosed earlier this month that it too had quietly filed paperwork for a U.S. initial public offering, positioning itself for what industry observers expect could be a pivotal moment for Wall Street’s artificial intelligence investment surge.

Anthropic, which develops the Claude AI chatbot, most recently secured funding at a $965 billion valuation in late May after raising $65 billion, placing it ahead of OpenAI in terms of market value.

The company’s potential public debut is being viewed as one of the most significant stock market launches in recent years, with the potential to influence major market indexes, investment patterns, and the overall direction of U.S. stock markets.

Industrial conglomerate Honeywell announced Thursday its intention to pursue major acquisitions ranging from $2 billion to $4 billion in value, with particular focus on expanding its industrial automation operations.

During the company’s investor presentation in New York, Peter Lau, who leads Honeywell’s Industrial Automation division, expressed enthusiasm about potential deals in the sector.

“There is a ton of opportunity for M&A,” Lau stated, noting that his division operates within an approximately $35 billion marketplace.

Despite the acquisition focus, Lau emphasized that internal growth continues to be a key priority for the company. He characterized the automation business as “way underpenetrated” when it comes to solutions and software offerings.

Company-wide, Honeywell indicated it plans to pursue strategic acquisitions within its stated $2 billion to $4 billion target range. The corporation is concentrating on automation technologies and other critical operational sectors where management anticipates clear business advantages and robust profit potential.

An artificial intelligence company is making significant moves to expand its computing infrastructure through a major data center initiative, according to a Thursday report from The Information.

Anthropic, the company responsible for developing the Claude Code AI assistant, has entered into more than a dozen preliminary lease agreements for data centers throughout the United States. These facilities would provide a combined capacity exceeding 1 gigawatt, sources familiar with the arrangements told The Information.

The AI startup’s leadership team has been exploring a financial arrangement with Google, which currently backs the company. Under the proposed deal, Google would offer financial guarantees for Anthropic’s lease payments. Google also collaborates on designing some of the server chips that Anthropic might deploy in these new facilities, the report indicated.

When contacted for comment, Google stated it does not provide responses to rumors or speculation. Anthropic has not yet responded to requests for comment from Reuters.

The expansion plans come as Anthropic experiences significant interest in its Claude series of AI models, leading the company to pursue multiple major agreements aimed at boosting its computing capabilities. This infrastructure development coincides with the company’s preparation for a public stock offering.

The company announced earlier this month that it had submitted confidential paperwork for a U.S. initial public offering, though details about the offering’s size and terms were not disclosed.

In April, Anthropic revealed that Alphabet had committed to investing as much as $40 billion in the AI startup.

Most recently, Anthropic completed a funding round in late May, raising $65 billion and achieving a post-money valuation of $965 billion. This valuation positions the company ahead of competitor OpenAI in terms of market value.

WASHINGTON — Wholesale prices across the United States accelerated at their sharpest rate since November 2022 last month, driven by dramatic increases in energy costs following the outbreak of conflict with Iran.

The Labor Department announced Thursday that its producer price index — a measure that tracks inflation before it impacts consumers — surged 6.5% compared to May 2025. Monthly increases hit 1.1% from April, matching the prior month’s rise. Wholesale gasoline costs exploded by more than 23% between April and May, climbing nearly 70% year-over-year.

Rising costs, amplified by energy market disruptions from the Iran conflict, are creating headaches for Americans just five months ahead of midterm elections that will decide whether President Donald Trump’s Republicans maintain complete congressional control.

While gasoline costs have declined recently, regular unleaded has stayed above $4 per gallon since March, motor club AAA reports. The peak U.S. driving season, which annually drives prices upward, is only beginning.

When removing unpredictable food and energy costs, core wholesale prices increased 0.4% monthly and 4.9% from May 2025.

These wholesale inflation figures followed Wednesday’s Labor Department data showing consumer prices climbed 4.2% annually in May, the steepest three-year increase. Gasoline costs jumped nearly 41% from May 2025, while airline tickets rose almost 27%.

Current inflation rates significantly exceed the Federal Reserve’s 2% goal. The central bank is anticipated to maintain its benchmark interest rate at next week’s meeting. However, financial markets predict the Fed might increase rates before year’s end to combat rising prices.

Wholesale price data can provide early indicators of future consumer inflation trends. Economists monitor it closely because certain components, particularly health care and financial services, influence the Fed’s preferred inflation measurement — the personal consumption expenditures, or PCE, index.

Stephen Brown, chief North America economist at Capital Economics, noted that producer prices “that feed into the PCE price calculation rose by much more than we expected … It supports our view that the Fed will hike interest rates toward the end of the year.”

Following a February 28 attack by the United States and Israel, Iran closed the Strait of Hormuz, creating history’s most significant oil supply disruption. Energy prices skyrocketed. S&P Global Energy cautioned Thursday that U.S. crude oil reserves are depleting as summer driving season approaches.

“The bottom line is that U.S. inventory levels remain above estimated minimum operating thresholds,” said S&P Global Energy’s Aaron Brady. “However, with continued disruption to Middle East flows, draws are likely to extend into the third quarter, even in the event of a near-term diplomatic resolution.” Additional major, sustained inventory drops “would likely signal entry into a ‘danger zone’ for the U.S. refining system.”

Home loan rates in the United States climbed higher this week, reaching levels close to the year’s peak as the ongoing war with Iran continues to impact borrowing costs.

Freddie Mac reported Thursday that the standard 30-year fixed mortgage rate increased to 6.52%, up from the previous week’s 6.48%. While this represents a weekly gain, current rates still sit lower than the 6.84% recorded twelve months ago.

Rising mortgage rates can burden homebuyers with additional monthly payments totaling hundreds of dollars, which decreases how much house they can afford to purchase.

Home loan rates respond to multiple economic forces, including Federal Reserve policy choices and bond market traders’ outlook on economic growth and inflation pressures. These rates typically move in tandem with the 10-year Treasury yield, which serves as a benchmark for lenders setting home loan prices.

Since the U.S.-Iran conflict erupted in late February, rates have primarily moved upward as the war has interrupted Persian Gulf oil shipments to global markets. This disruption has pushed oil costs significantly higher and contributed to rising inflation.

Market predictions of continued elevated oil prices throughout the extended conflict have maintained pressure on long-term bond yields, pushing mortgage rates generally higher.

Thursday’s midday bond trading showed the U.S. 10-year Treasury note yielding 4.53%, an increase from 4.47% seven days earlier. This compares to just 3.97% in late February before the war began.

Danish pharmaceutical giant Novo Nordisk announced Thursday that cybercriminals successfully breached multiple internal computer networks at the company.

The drugmaker has enlisted outside cybersecurity specialists to help investigate the breach and has notified appropriate government agencies about the incident.

As a precautionary measure, Novo Nordisk has shut down several internal computer networks temporarily while working to restore the compromised systems using secure protocols.

“While our investigation and response are ongoing, we have discovered that certain non-public data, including personal data, were copied externally without authorisation. We are informing the impacted parties as appropriate,” the Danish drugmaker said.

The pharmaceutical company emphasized that its primary business functions continue operating normally despite the cybersecurity incident.

A Chinese pharmaceutical company has launched a federal lawsuit against the Pentagon after being designated as having ties to China’s military operations.

WuXi AppTec announced Thursday that it submitted legal papers to a U.S. district court challenging the Department of Defense’s decision to place the firm on a registry of Chinese entities allegedly supporting Beijing’s armed forces.

The pharmaceutical company finds itself among major Chinese corporations on this registry, including technology giant Alibaba, search engine company Baidu, and electric vehicle manufacturers BYD and NIO, all of which Washington suspects of assisting China’s military capabilities.

Pentagon officials released the comprehensive registry earlier this week, encompassing numerous prominent Chinese technology enterprises that authorities believe contribute to Beijing’s defense and manufacturing capabilities. The move highlights ongoing national security worries as tensions escalate between the two superpowers.

This legal challenge follows WuXi’s Tuesday statement promising swift measures to contest and rectify what the company termed an “erroneous designation.”

According to exchange documents filed Thursday, WuXi is requesting that courts invalidate the Pentagon’s classification of the company as a “Chinese military company” and strike the firm from the official registry.

When contacted for response, a Pentagon representative stated that the Department maintains a policy of not discussing active or prospective legal proceedings.

A robotics company based in Barcelona that specializes in artificial intelligence technology announced Thursday it has successfully secured $85 million through a new investment round, demonstrating continued momentum in Spain’s expanding technology industry.

The company, Theker, focuses on creating robotic systems that utilize artificial intelligence to carry out different functions within industrial settings.

Venture capital firm CRV spearheaded the investment round, with participation from major corporations including Samsung and luxury brand conglomerate LVMH.

This significant funding announcement follows Amazon’s earlier commitment to invest an additional €18 billion ($20.7 billion) in Spain just months ago, aimed at expanding data center operations and advancing artificial intelligence development.

Brazilian aircraft manufacturer Embraer announced Thursday that its commercial aviation division maintains an order backlog exceeding $15 billion, while declaring that significant engine problems plaguing its newest E2 aircraft series have been addressed.

The backlog figure was revealed following Embraer’s announcement last week of a confirmed purchase agreement for 15 E195-E2 aircraft from aircraft leasing company Azorra.

At the conclusion of the first quarter, the company’s backlog reached $15 billion, representing a 50% increase compared to the same period last year.

According to the unit’s marketing vice president Rodrigo Silva e Souza, who spoke with reporters, the company maintains a strong position to achieve its projected delivery target of 80 to 85 commercial aircraft in 2026.

Silva e Souza stated that Embraer anticipates no E2 aircraft will remain grounded due to engine problems by the conclusion of 2026.

Aircraft engine manufacturers have encountered mounting pressure from airline companies due to planes being taken out of service and increased maintenance expenses.

According to Embraer, the current aircraft-on-ground rate for the E2 fleet sits at 1%, a dramatic decrease from the peak of 22% recorded in March 2025.

The E2 aircraft utilize engines manufactured by RTX’s Pratt & Whitney division, which Embraer reports are currently receiving upgrades to enhance performance in high-temperature, challenging operating conditions.

While maintaining what it describes as a “robust” order backlog, Embraer indicates it still offers manufacturing slots prior to 2030, positioning this as a competitive advantage over industry giants Boeing and Airbus.

Embraer specializes in aircraft designed to accommodate approximately 150 passengers or fewer, operating below the passenger capacity of Airbus’ and Boeing’s most popular A320 and 737 aircraft series.

WASHINGTON — Global economic expansion will slow significantly this year as the ongoing conflict with Iran drives up energy costs and creates widespread market uncertainty, according to a new World Bank assessment released Thursday.

The international development organization now projects worldwide economic growth of only 2.5% for this year, marking the poorest performance since the COVID-19 pandemic disrupted international trade six years ago.

The financial institution revised downward its growth projections for two-thirds of nations across the globe.

However, the United States avoided a forecast reduction. The World Bank maintains its prediction that America’s economy will expand by 2.2% this year, matching its January projection and slightly improving from 2.1% growth in 2025.

The U.S. economy demonstrates greater stability than oil and natural gas importing nations due to its status as a significant energy producer, while also benefiting from substantial tax reductions and surging artificial intelligence investments. Nevertheless, American consumers continue to face frustration over elevated gasoline and commodity costs.

Developing nations face more severe economic headwinds. The World Bank reduced its 2026 growth estimate for emerging market economies by 0.4 percentage points to 3.6%, the lowest projection since the pandemic. According to the bank, in these regions, “the disruption in energy supplies and sharp increase in energy prices caused by the conflict have dampened confidence and weakened broader economic activity.”

China, the second-largest global economy, is projected to achieve 4.2% growth this year, declining from 5% in 2025 and below the 4.4% the institution had previously predicted for this year in January. India is anticipated to maintain its position as the fastest-expanding major economy with 6.6% growth, though this represents a significant drop from 7.7% in 2025.

The 21 European nations using the euro currency are collectively forecast to achieve modest 0.8% expansion this year, down from 1.4% in 2025.

Iran’s response to attacks by the U.S. and Israel included shutting down the Strait of Hormuz, a critical passage for one-fifth of global oil and natural gas shipments. Energy costs have surged as a result. The World Bank anticipates Brent crude oil will average $94 per barrel this year, representing a 36% increase from 2025 and 50% above the institution’s January projection.

The conflict has also interrupted fertilizer trade flows, with significant exports moving through the Persian Gulf region. This disruption could trigger food supply shortages as agricultural producers reduce fertilizer use to avoid increased expenses.

Elon Musk’s space exploration company is preparing for a historic stock market debut that revolves around astronomical figures — and the numbers behind SpaceX’s public offering plans are truly staggering.

Financial documents for the upcoming stock launch reveal expenditures on an enormous scale — surpassing the entire economic production of many nations — with plans to expand dramatically as Musk works to fulfill his ambitious vision of transporting humans to other worlds. The capital expected to be generated from this initial stock sale — projected at $75 billion — will help fund these ambitious, science-fiction-like objectives.

If the public offering proceeds smoothly, it would establish a new record as the biggest in history. The move could also elevate Musk, who holds a significant ownership position in SpaceX and currently ranks as the planet’s wealthiest individual, to become the first person worth more than a trillion dollars.

Beyond the remarkable financial figures, the company’s filing documents read somewhat like a screenplay for a futuristic Hollywood film as Musk outlines his vision of using rocket technology to prevent human extinction by transforming our species into inhabitants of multiple planets.

Initially, Musk plans to transport astronauts to the moon for establishing a lunar outpost. His ultimate goal involves creating settlements on Mars.

Here’s an examination of the impressive statistics underlying Musk’s extraordinary aspirations.

SpaceX would achieve this market valuation if its publicly traded shares maintain the initial offering price of $135 per share. Given the significant investor enthusiasm surrounding SpaceX, the stock price could potentially climb higher during its first trading day. Currently, computer chip manufacturer Nvidia holds the position as the world’s most valuable publicly traded corporation at approximately $4.9 trillion. A valuation of $1.77 trillion would position SpaceX alongside Broadcom as the sixth most valuable company, based on Wednesday’s market closing.

This represents Elon Musk’s total wealth as of June 10, according to Forbes calculations. Based on how significantly the SpaceX public offering increases the value of Musk’s company ownership, he might achieve trillionaire status for the first time in history. The total wealth of the second through fifth richest individuals on the Forbes ranking — Google co-founders Larry Page and Sergei Brin, Amazon founder Jeff Bezos and Meta Platforms CEO Mark Zuckerberg — equals $999.2 billion.

SpaceX would generate these funds by offering 555,555,555 shares priced at $135 each through the public offering, representing more than twice the previous IPO record of $26 billion achieved by Saudi oil company Aramco in 2019.

This represents the quantity of advanced Starlink satellites that Musk indicates SpaceX intends to launch into orbit. The Starlink network currently operates approximately 9,600 satellites in space. For perspective, UPS reports operating 135,000 delivery vehicles — including motorcycles — across its transportation network.

Musk will maintain this level of decision-making authority at SpaceX through his ownership of over 90% of the company’s Class B shares, which provide holders with 10 votes per share. He additionally holds a 12.3% ownership in Class A shares, which carry single voting rights per share.

Musk must achieve this population level in a Martian settlement to qualify for a portion of his SpaceX performance-based compensation. Currently, no technology exists to transport even a single individual to Mars, much less one million people. Earth cities with similar populations include Ottawa, Prague and San Jose, California.

The company’s total expenditures in 2025 across all divisions, encompassing rockets, satellites and artificial intelligence systems. The majority of this spending, totaling just under $11.4 billion, originated from its connectivity division that operates the Starlink satellite network. In comparison, NASA’s 2026 budget allocation is $24.4 billion.

SpaceX allocated this amount in 2025 for purchasing Cybertrucks from Musk’s other publicly traded enterprise, Tesla. The entry-level Cybertruck model is priced at $69,990. This $131 million expenditure would purchase approximately 1,871 vehicles. The business relationships between Musk’s companies have generated discussion about a potential future merger between Tesla and SpaceX.

This represents the projected portion of IPO shares designated for individual investors with smaller investment budgets, commonly called retail investors. Generally, only approximately 5% to 10% of IPO shares are allocated to this investor category.

The World Cup has begun, setting the stage for an intense rivalry between athletic giants Nike and Adidas both on the soccer field and in retail stores worldwide.

Nike desperately needs a victory. The global soccer competition, taking place partially on American soil, arrives during the second year of CEO Elliott Hill’s effort to turn the company around. The athletic wear manufacturer has watched its market position weaken, anticipates revenue will decline between 2% and 4% during the current quarter, and has seen stock values plummet more than 30% this year as shareholders lose patience with Hill’s recovery efforts.

However, encouraging developments are emerging in retail locations. Customers walking into the Pelé Soccer store in Times Square recently encountered a display of mannequins wearing Nike uniforms for the United States, Brazil, and France teams.

Nike’s World Cup marketing effort called “Rip the Script,” centered on a promotional video showcasing soccer stars and famous personalities including Kylian Mbappé and Kim Kardashian, dominated the window showcase at a Champs Sports location in midtown Manhattan. The prominent positioning of Nike jerseys by the Foot Locker subsidiary demonstrates Nike’s advancement in repairing connections with retail partners that were damaged when former CEO John Donahoe shifted toward selling directly to consumers.

“Football allows us to reach so many different people,” said Camilo Andrade, Nike’s vice president of global football. Regarding collaboration with wholesale retailers, the approach “has been first and foremost to make sure that we restore those relationships,” Andrade added.

Beyond introducing two new Mercurial soccer cleats this month, the athletic apparel company is providing uniforms for 12 national teams, collaborating with local streetwear designers, and updating soccer products at over 5,000 Nike and wholesale locations around the world.

However, the competition remains intense. Adidas, serving as an official World Cup sponsor and a brand with deep soccer heritage, is backing 14 teams and providing the tournament’s official match ball, which acts as a prominent centerpiece in retail environments.

British retailer JD Sports has observed that Mexico and Argentina jerseys – both supported by Adidas – have emerged as the top-selling team uniforms so far, according to a company spokesperson. Industry experts suggest brand success will partially depend on which teams perform well in the actual tournament.

Louis Carrillo, 30, found himself attracted to a display of Mexico jerseys at Pelé Soccer – not just to cheer for his home country’s team as they compete against South Africa on Thursday, he explained, but also because of the distinctive Adidas three stripes featured on the shirt’s shoulders.

He previously purchased Nike’s Mercurial soccer boots during his youth, “but I feel that it’s not the same anymore,” Carrillo added, noting his enthusiasm for the design has diminished.

Industry analysts warn that even a World Cup boost might not be sufficient to change Nike’s overall direction. The sportswear leader still must introduce more innovative products that capture consumer attention.

RBC Capital Markets reduced its Nike stock recommendation just one day before the World Cup’s opening match. Analyst Piral Dadhania pointed to a slower-than-anticipated recovery, stating the World Cup influence and new products are “not sufficient to offset clean-up actions elsewhere in the business.”

“The problems that Nike has are not going to just go away because of the World Cup,” said Morningstar analyst David Swartz. “But it’s certainly an opportunity to get the brand back in front of people.”

Nike’s product selection will help increase brand visibility as the tournament progresses, but currently, Adidas merchandise appears more prominent at retailers like Dick’s Sporting Goods and Foot Locker, according to analysts at Telsey Advisory Group who published their findings this week.

Major stock market indexes moved higher Thursday as investors purchased discounted technology shares while monitoring ongoing Middle East tensions.

Semiconductor companies recovered following Wednesday’s decline that pushed major indexes down over 1% and sent technology stocks into correction territory with a 10% fall from recent peaks.

Intel surged 10%, while Nvidia and Micron Technology climbed 1.3% and 2.4% respectively. The S&P 500 technology index rose 1.4%, and the Philadelphia SE Semiconductor index jumped 4.5%.

Oracle stock dropped 12.5% after the company announced capital spending projections for fiscal 2027 that exceeded Wall Street expectations. Software stocks declined 2.2% overall.

Applovin and Atlassian each fell approximately 3%, while Servicenow, Salesforce and Adobe decreased between 2.2% and 3%.

U.S. President Donald Trump announced Washington would strike Iran “very hard tonight” and soon assume control of the Middle Eastern nation’s oil and gas infrastructure and markets. Oil prices moved higher.

“That’s (Trump’s warning) a pretty worrisome thought for the market but what we’re seeing here is a market that may have been grossly oversold over the past few days. And so that’s why we’re seeing some sort of a bump,” said Phil Blancato, chief market strategist at Osaic Wealth.

At 09:56 a.m. ET, the Dow Jones Industrial Average increased 450.39 points, or 0.90%, to 50,371.57, the S&P 500 advanced 58.67 points, or 0.81%, to 7,325.66 and the Nasdaq Composite rose 267.93 points, or 1.07%, to 25,437.44.

The S&P 500 has fallen roughly 4% since reaching a record closing high in early June as investors wrestle with worries about elevated tech valuations and stricter monetary policy, with Middle East conflict adding inflationary concerns.

Ten of 11 major S&P 500 sectors posted gains, with industrial stocks leading the advance.

Communication services fell 1.5%, as Alphabet and Meta each dropped nearly 2%.

Economic data revealed U.S. producer prices rose more than anticipated in May, resulting in the biggest annual increase in over three years.

Additionally, the number of Americans filing unemployment benefit claims rose slightly last week.

The Federal Reserve is widely anticipated to maintain current interest rates at next week’s policy meeting, with investors expecting at least one 25 basis point rate increase by year’s end.

The eagerly awaited Friday market launch of Elon Musk’s SpaceX, expected to be valued at $1.75 trillion, could challenge this year’s rally that has repeatedly pushed stocks to record heights.

The World Bank reduced its global growth projection for 2026 due to the Middle East war, stating growth could decelerate to just 1.3% if energy supply disruptions become more severe and create significant financial market stress.

Among other notable moves, Navan soared 16.5% after the corporate travel booking agency increased its full-year revenue and operating income forecasts on Wednesday.

Rising stocks outnumbered declining ones by a 3.27-to-1 ratio on the NYSE and by a 2.11-to-1 ratio on the Nasdaq.

The S&P 500 recorded 9 new 52-week highs and 7 new lows while the Nasdaq Composite registered 86 new highs and 86 new lows.

Alphabet’s Google is reportedly negotiating with Samsung Electronics to produce components for its upcoming artificial intelligence processor, according to a Thursday report from The Information citing sources with knowledge of the discussions.

The arrangement would have Taiwan’s TSMC manufacturing the primary portion of the processor, which carries the internal designation ‘Icefish,’ while Samsung would handle production of a specialized component responsible for memory connectivity using its advanced 2-nanometer manufacturing process, sources indicated.

The semiconductor sector continues to face significant production constraints as TSMC, the globe’s leading contract chip manufacturer, struggles to meet escalating demand and prevent supply chain disruptions during the current artificial intelligence expansion.

Google has been working to develop its proprietary AI processors as competitive alternatives to Nvidia’s market-leading graphics processing units, with tensor processing unit sales contributing significantly to the company’s cloud computing revenue growth.

The ‘Icefish’ processor remains in development phases and may begin large-scale manufacturing by 2028, The Information reported.

Earlier this week, The Information disclosed that Google was discussing with Intel the production of over three million TPUs scheduled for 2028, according to industry sources.

Alphabet has not yet provided comment on the report, while Samsung Electronics was unavailable for immediate response outside standard business hours. Reuters was unable to independently confirm the information.

Elon Musk’s rocket company has attracted over $70 billion in investment orders from individual investors ahead of its highly anticipated stock market launch, according to a Bloomberg News report published Thursday that cited sources with knowledge of the situation.

Individual investors are anticipated to receive a minimum of 20% of available shares, the Bloomberg report indicated, though it noted that discussions continue and offering specifics may still be modified.

The space exploration company did not provide an immediate response to Reuters’ request for comment. Reuters was unable to independently confirm the Bloomberg report.

Reuters had previously reported that the rocket manufacturer was weighing the possibility of designating up to 30% of the stock offering for individual investors, representing an uncommonly large portion for retail participation designed to capitalize on Musk’s devoted fanbase.

The eagerly awaited market launch is set for Friday, with the aerospace company targeting $75 billion in fundraising at approximately a $1.8 trillion company valuation.

The company has attracted over $250 billion in total investor interest for what is positioned to become the biggest initial public offering on record, Reuters reported Tuesday, citing sources with knowledge of the situation.

The digital money transfer platform Zelle plans to launch operations in India during the second half of this year, marking the service’s inaugural venture beyond U.S. borders since beginning operations almost ten years ago.

The company behind Zelle’s network, Early Warning Services, described India as an ideal “natural starting point” for expanding internationally. Data from India’s central banking authority shows that approximately one-third of all money transfers sent to India annually originate from the United States.

Early Warning Services anticipates further expansion into additional global markets. Alongside revealing plans for India, the organization announced development of its own digital currency backed by U.S. dollars, called ZelleUSD, which will support infrastructure for future international operations.

Over its nine-year history, Zelle has emerged as a leading method for Americans to transfer funds directly between bank accounts. According to Early Warning Services, users and small businesses processed over $1.2 trillion through the platform in 2025.

However, the payment platform’s expansion hasn’t been without challenges. The service has endured years of examination regarding fraudulent activity and unauthorized transactions, including legal action brought by the Consumer Financial Protection Bureau in December 2024. The Trump Administration dismissed that case with prejudice in March 2025 after taking control of the bureau and ending most enforcement efforts against financial institutions.

A separate legal challenge filed by New York Attorney General Letitia James containing comparable accusations is currently progressing through New York’s court system.

Seven major national banks jointly control EWS, including JPMorgan Chase, Bank of America and Wells Fargo.

NEW YORK (AP) — Numerous employees worry that machines will replace them as artificial intelligence technology spreads rapidly through workplaces.

However, what if humans possess characteristics that are both uniquely human and crucial for professional achievement that AI cannot easily substitute?

Several workplace specialists believe that as more companies implement AI technology, developing soft skills like empathy, critical thinking and ethical decision-making can help workers become irreplaceable.

Throughout various industries and job types, “the abilities that resist being replaced by AI are those that are most uniquely human,” stated Maria Flynn, president and CEO of Jobs for the Future, a nonprofit organization focused on workforce development. “Some of these include building relationships, resolving conflicts, the capacity to guide and inspire others, and making ethical judgments.”

Flynn noted that even when posting technical positions like IT support, companies indicate they want candidates who communicate effectively and demonstrate leadership qualities.

“We began using the phrase ‘durable skills’ and consider them as abilities that truly are lasting, maintaining their worth through economic changes, technological advances and labor market disruptions,” she explained. “And we believe, particularly now during this period of AI progress, that durable skills genuinely make workers valuable in the workplace, no matter what tools and technology become available.”

Below are five abilities to develop based on areas where specialists say humans maintain advantages over artificial intelligence.

Understanding body language and reading between the lines to understand what wasn’t directly stated are abilities that many believe humans perform best. These skills also support the capacity to demonstrate empathy, and being aware of others’ emotions is a desirable quality in employees.

Marco Iansiti, a professor of business administration at Harvard Business School, witnessed this personally during a hospital visit.

“A nurse provides incredibly human influence. Emotion, connecting with the patient, the kind of care that is so crucial,” Iansiti explained. “I recall moments when I was ill in the hospital and the nurse was like a blessing. Would I have allowed a robot to do the same? No. There was a human bond there that I found extremely valuable.”

AI could assist in hospital environments by handling routine tasks like paperwork, allowing nurses more time to deliver caring patient treatment, he noted.

“There are many systems being implemented now that I believe are highly effective at this and basically free healthcare workers to perform the tasks they should be doing and excel at.”

Creating solid personal connections with coworkers, clients and stakeholders continues to be a valued ability that experts say artificial intelligence systems struggle to duplicate. Sales professionals, for instance, maintain files or databases containing information they’ve gathered about clients through direct interactions.

“You have individuals who have trusted you and purchased products from you over the past decade. That holds worth and that’s difficult to transfer to artificial intelligence,” Iansiti said.

People skills also prove invaluable during conflicts. “Having that human involved to manage those expectations, to smooth any hurt feelings, to create the kinds of relationships that are necessary, to speed up quality work, will still be essential,” Flynn stated.

Conflict resolution remains a necessary trait for managers, according to Colleen Adler, director analyst in the human resources practice at the Gartner consulting firm.

“People still have managers, and managers and leaders influence how they feel, and colleagues affect how we feel too,” Adler said. “There remains a quality to AI that doesn’t yet replicate human connection. That might change; I don’t believe we’re at that point yet.”

Work settings are changing quickly and many workers feel they’re moving from one challenging situation to another, Adler observed. While AI systems can’t help employees feel better about that uncertainty, effective leaders can support their teams, she added.

Artificial intelligence systems gather information and create responses but can produce errors, making it crucial to question their output. Building extensive knowledge in your field can help you recognize when AI-generated results about your industry are wrong, said Amalia Kaufman, course developer and instructor at the University of California, Irvine Division of Continuing Education.

“You must have the thinking ability and critical analysis and subject expertise to understand it, and to recognize when it’s incorrect,” Kaufman said. “You must verify your facts.”

In research published in the journal Science, Stanford researchers examined 11 popular AI systems and discovered that artificial intelligence chatbots tended to flatter and validate users’ feelings, supporting a user’s actions 49% more frequently than humans did. Stepping back and using critical thinking when reviewing AI-generated results can help counter its tendency to be overly agreeable with users.

The capacity to differentiate right from wrong, or follow one’s inner voice, is an ability that is naturally human, experts stated.

Sometimes, people depend on physical sensations to guide their choices. “Gut feelings are something you experience in your gut,” Iansiti said. “It’s not simply a pattern of information processing in your brain. It is actually an emotional response that is fundamentally different from how AI functions. At least this current generation of AI.”

When life-or-death choices must be made, such as when to employ deadly military action, “do you want something that lacks human emotion, that doesn’t have a physical form connected with the intelligence?” Iansiti questioned. “AI can pretend to have a conscience because it’s learned about what conscience means, but it doesn’t possess a conscience.”

People can create parameters, or guidelines, for artificial intelligence systems to help AI make ethical choices, he said. But human involvement is still necessary.

“It’s extremely difficult to design a system that’s ethical for everything. It’s much more effective to build it for a particular use case. Like hiring,” Iansiti said.

Ethical concerns aren’t the only ones that AI is less prepared to address currently. The ability to generate creative concepts and make choices in unclear situations — while planning strategies or creating a brand identity, for instance — is another significant human capability, experts said.

“We don’t think that’s something that will be duplicated by artificial intelligence,” said Heather Stefanski, chief learning and development officer at management consulting firm McKinsey. “If we’re all simply using the AI solution to solve problems, how will you truly be unique?”

Humans make decisions based on a combination of knowledge and life experiences, Flynn said. Artificial intelligence uses extensive data but doesn’t necessarily function well in uncertain areas, Flynn noted. For now, the ability to consider all aspects of an issue and provide context remains a type of intelligence that people have to a greater degree than AI, she said.

“The qualities that make us uniquely human to me will continue to be what helps our society flourish in productive ways,” Flynn said. “And ensuring that we are highlighting those qualities, paying attention to them, making sure those are characteristics that people can identify and express and feel confident about, will be important as we all navigate a rapidly changing future.”

Producer prices across the United States climbed significantly higher than anticipated during May, marking the steepest annual increase seen in three and a half years as ongoing Middle East tensions pushed energy costs upward.

The Bureau of Labor Statistics within the Labor Department announced Thursday that the Producer Price Index for final demand rose 1.1% during May, matching a revised 1.1% climb from April.

Financial analysts surveyed by Reuters had predicted a more modest 0.7% increase, following what was initially reported as a 1.4% April surge. Over the full 12-month period ending in May, producer prices jumped 6.5%, representing the most substantial annual growth recorded since November 2022. Energy products and other goods saw prices rise 2.8%, contributing nearly four-fifths of the overall producer price increase, while service costs grew by 0.3%.

The ongoing conflict between the United States and Israel against Iran has pushed up costs for energy products such as gasoline and diesel fuel. International supply networks have faced significant pressure due to shipping restrictions through the Strait of Hormuz, creating shortages across numerous product categories including fertilizers, aluminum, and various consumer goods.

Federal officials reported Wednesday that consumer inflation surged past 4% during May, marking the first time this threshold was crossed in three years.

The nation’s central banking system monitors Personal Consumption Expenditures price measurements as part of its 2% inflation goal.

The combination of increasing inflation and steady employment conditions has prompted financial markets to anticipate a rate hike from the Federal Reserve. However, economic experts believe the threshold remains elevated for policy tightening measures, noting that the oil price surge has thus far stayed limited to transportation industries. The central bank is anticipated to maintain its benchmark overnight interest rates within the 3.50%-3.75% range during next week’s meeting. Economic analysts expect the Fed will move away from its previous easing stance.

After reviewing the consumer price report, economists projected that PCE inflation might rise 0.4% in May, mirroring April’s increase. Annual PCE inflation was predicted to reach 4.0% for the 12-month period through May, which would represent the largest jump since May 2023, up from April’s 3.8% figure.

Elon Musk’s space exploration company SpaceX is set to begin trading on Wall Street this Friday, with investors eagerly awaiting the chance to purchase 555.6 million shares priced at $135 each. The move could potentially make Musk, who is already the wealthiest person globally, the world’s first trillionaire.

During a video call on Musk’s social media platform X with JPMorgan CEO Jamie Dimon, Musk explained that while people have been urging him to take SpaceX public for a decade, he’s choosing to do so now because the company intends to launch 100,000 next-generation Starlink satellites into orbit. He stated that putting AI data centers in space represents a “massive new growth base and you need capital for that.”

The public offering is expected to generate approximately $75 billion in proceeds, potentially making it the largest initial public offering in history. SpaceX aims to become the first company to transport humans to Mars, and part of Musk’s future earnings are tied to SpaceX successfully creating a colony of at least 1 million people on Mars.

While going public will provide SpaceX with the capital it requires, it also subjects the company to increased shareholder scrutiny and regulatory oversight. This includes mandatory quarterly financial reporting, which some critics argue promotes short-term decision-making over long-term planning and creates unnecessary expenses. Securities regulators are currently seeking public input on a proposal that would require public companies to file financial reports just twice annually instead.

SpaceX acknowledges Musk as the “driving force” behind its growth, innovation and achievements. However, the company warns that losing Musk could disrupt its ability to implement its strategy and damage its “reputation and relationships with customers, partners and other stakeholders.” SpaceX also cautions that finding someone with Musk’s equivalent skills and experience would be time-consuming, if not nearly impossible. As Wedbush Securities analyst Dan Ives noted Wednesday, “At the end of the day Musk is SpaceX and SpaceX is Musk.”

Musk will retain control of a majority of special shares, giving him authority over company strategy, financial decisions and staffing choices. Due to his ownership of most Class B shares, Musk is essentially the only person with the power to remove himself as CEO.

Industry experts say SpaceX has gained a significant advantage over competitors like Blue Origin, headed by Amazon founder Jeff Bezos, by developing reusable rocket technology. The Starlink satellite division faces competition from companies including AST SpaceMobile, which ironically plans to use a SpaceX rocket to launch its newest satellites next week.

According to the prospectus filed last week, SpaceX identifies its largest potential market as selling business-focused artificial intelligence products that could revolutionize workplace productivity. The company estimates this opportunity could be worth $22.7 trillion if it could outcompete rivals like Anthropic, OpenAI and Microsoft in this highly competitive sector. However, the prospectus reveals no clear path to profitability for the xAI business, which combined with SpaceX earlier this year.

The massive reusable rocket currently in testing phase is crucial to achieving Musk’s goals. Much of the commercial space industry depends on SpaceX successfully developing Starship’s capability to be completely reusable and durable enough for rapid turnaround between missions. If this fails to materialize, SpaceX warns that deploying data centers and satellites in space will require more time and money, potentially causing customers to abandon the company.

Should the SpaceX public offering succeed as anticipated, the stock could rapidly be added to the Nasdaq 100, a closely watched index that monitors the 100 largest non-financial companies on the Nasdaq. This inclusion matters because popular funds, such as the $460 billion QQQ exchange-traded fund, replicate the index and automatically purchase whatever stocks are listed.

Nasdaq recently modified its regulations to permit select companies to join the Nasdaq 100 after only 15 trading days.

Meanwhile, S&P Dow Jones Indices maintains its established and more conventional requirements that would enable SpaceX or other companies with enormous IPOs quicker access to its S&P 500 index. This means companies must still wait for their stocks to trade for a complete 12 months before index inclusion.

Companies seek S&P 500 inclusion particularly because it’s considered the most significant index on Wall Street, with trillions of dollars either directly copying it or using it as a benchmark. For instance, Vanguard’s VOO fund that follows the S&P 500 has approximately $950 billion invested in it.

Stock market futures posted gains Thursday morning as traders snapped up discounted technology shares and reacted optimistically to diplomatic developments in Middle East peace negotiations between the United States and Iran.

Semiconductor companies recovered from Wednesday’s sharp decline that pushed major stock indexes down over 1% and sent technology shares into correction territory with a 10% fall from recent peak levels.

In early trading before markets opened, shares of major chipmakers Nvidia, Intel and Micron Technology climbed between 1.2% and 4.7%.

Despite ongoing military exchanges between the United States and Iran on Thursday, three Iranian sources and a European official reported that both nations were discussing specifics of an agreement following a broader political accord, though several matters require further negotiation.

Market optimism about potential reopening of the Strait of Hormuz shipping lane contributed to declining oil prices. Early morning trading showed the Dow E-minis climbing 367 points or 0.73%, while S&P 500 E-minis gained 53.75 points or 0.74%. The Nasdaq 100 E-minis advanced 338.75 points or 1.19%.

The S&P 500 has declined roughly 4% from its record peak reached in early June as market participants wrestle with high technology sector valuations and concerns over stricter monetary policy, while Middle East tensions drive up energy costs and fuel inflation worries.

Friday’s highly anticipated public offering of Elon Musk’s SpaceX, expected to carry a $1.75 trillion valuation, may challenge this year’s rally that has repeatedly pushed stocks to new highs.

Market watchers will focus on the monthly producer price index and weekly unemployment claims data, both scheduled for release at 8:30 a.m. ET, seeking insights into Federal Reserve policy direction before next week’s central bank meeting.

Wednesday’s data revealed U.S. consumer price increases reached their fastest rate in three years during May, driven higher by surging energy costs related to Middle East conflicts.

In individual stock movements, Oracle shares dropped 7% following the company’s announcement of capital expenditure plans for fiscal 2027 exceeding analyst projections, highlighting substantial cash requirements for artificial intelligence infrastructure expansion.

Corporate travel platform Navan saw shares surge 17.6% after the company increased its annual revenue and operating income forecasts on Wednesday, pointing to robust business travel activity and expanding enterprise client numbers.

The space exploration company is preparing for what could become the biggest initial public offering in history, seeking a staggering $1.75 trillion valuation that would place it among the globe’s most valuable corporations.

While the company markets itself as humanity’s gateway to Mars exploration, its financial records paint a picture of an organization whose heavy investments in artificial intelligence computing power and new rocket technology have exceeded the revenue generated by its profitable Starlink satellite internet operations.

The company’s revenue climbed 33% to reach $18.67 billion in the previous year, with Starlink contributing approximately 60% of total sales through its network of roughly 10.3 million subscribers served by 9,600 satellites orbiting Earth.

However, the acquisition and integration of the money-losing xAI division resulted in a net loss of $4.94 billion last year, a sharp reversal from the $791 million profit recorded in 2024, when rapid Starlink expansion and reusable rocket launch services drove strong earnings.

The company has dramatically expanded its launch operations from a single mission in 2006 to conducting more than two launches weekly, significantly outperforming competitors and establishing itself as the preferred launch provider for NASA and Pentagon missions.

The workhorse Falcon 9 reusable rocket has enabled this launch frequency increase, while the larger Starship vehicle under development aims to transport crew and cargo on a scale never before achieved.

The Falcon Heavy configuration combines three Falcon 9 boosters to create one of the world’s most powerful operational rockets, capable of delivering 64 metric tons to low-Earth orbit and currently used for launching heavy military satellites and deep space missions.

Company leadership identifies artificial intelligence as their largest potential market opportunity. The February acquisition of xAI merged two major components of the business empire, though xAI lags behind competitors Anthropic and OpenAI by several metrics.

Recent analysis by finance startup Ramp revealed that over 30% of business customers were purchasing AI services from Anthropic and OpenAI in April, with the Claude Code developer surpassing OpenAI for the first time, while xAI maintained approximately 5% market adoption.

This data, derived from Ramp’s examination of spending patterns among roughly 50,000 customers, represents only a fraction of enterprise AI expenditure, a sector where Anthropic is considered the market leader.

IPO investors face a premium valuation that exceeds multiples commanded by leading technology companies. At $135 per share, the company would trade at approximately 94 times trailing sales — higher than Nvidia, Amazon and Meta, and comparable to specialized space companies Planet Labs and Rocket Lab, which trade at 50.4 and 115.4 times sales respectively, despite being newer enterprises.

Given last year’s losses, traditional price-to-earnings comparisons cannot be applied.

The premium valuation depends partially on Starship’s potential, designed for full reusability while carrying over 100 metric tons to low-Earth orbit, exceeding any currently operational rocket’s capacity. This capability would be essential not only for launch services but also for plans to deploy AI data centers in space.

Existing rockets, the Falcon 9 and Falcon Heavy, can transport approximately 22.8 metric tons and 63.8 metric tons to low-Earth orbit respectively.

Starship’s May test flight achieved a significant milestone before the public offering, successfully deploying simulated satellites and completing a controlled splashdown in the Indian Ocean despite minor engine complications.

A recent nationwide survey reveals that SpaceX has achieved remarkable name recognition across America, even surpassing established aerospace giants and well-known political personalities as the company prepares for its public stock debut.

The Reuters/Ipsos poll, conducted over six days and concluding Monday, found that 84% of Americans recognize the space exploration company, while only 13% reported never hearing of SpaceX.

This recognition level matches that of Boeing, the century-old aviation company that transports millions of passengers yearly, which 14% of survey participants said was unfamiliar to them. SpaceX’s visibility significantly exceeds that of Northrop Grumman, the defense contractor behind the B-2 stealth bomber, which half of those polled had never encountered.

The space company’s fame also outshines prominent political personalities considered strong candidates for the 2028 presidential race. Republican Secretary of State Marco Rubio was unknown to one in five respondents, while Democratic California Governor Gavin Newsom was unfamiliar to one in four survey participants.

Over the past ten years, SpaceX rockets have consistently executed dramatic controlled descents, landing on ocean platforms or being caught by massive mechanical arms at launch sites in displays that appear straight from science fiction. The company has simultaneously transformed the satellite internet industry.

The United States space program now depends significantly on SpaceX capabilities, as it represents the sole American organization currently able to transport astronauts to the International Space Station. The company is constructing a crucial lunar lander for NASA, handles the majority of Pentagon satellite launches, and attracts U.S. military and intelligence agencies through its extensive Starlink and Starshield satellite networks.

SpaceX plans to leverage its widespread recognition in its upcoming stock market launch, allegedly setting aside up to 30% of initial share sales for individual retail investors — substantially higher than the typical 5% to 10% allocation. The new stock pricing is anticipated Thursday, with the offering potentially establishing a company valuation exceeding $1 trillion despite recent financial losses.

Survey results showed 29% of participants would likely purchase SpaceX stock if available to them. However, this doesn’t indicate one-third of Americans will immediately buy shares, as Federal Reserve data shows only about 20% of households directly own individual stocks, with many holdings tied to employer programs.

The company generates mixed reactions among Americans who connect SpaceX with its CEO, the billionaire who significantly influenced Republican President Donald Trump’s second term opening months. The Reuters/Ipsos survey found 74% of Republicans view SpaceX favorably, compared to 32% of Democrats and 49% of all Americans. The CEO’s personal approval rating reached 34%, slightly below Trump’s rating.

NASA, the national space agency, earned an 80% favorability rating, though respondents showed division regarding human space exploration missions. Some 38% believe the costs of NASA’s crewed space programs exceed their benefits, while 58% consider the efforts worthwhile.

Americans also express mixed feelings about commercial space ventures, with 33% of poll participants opposing private companies’ objectives to extract lunar resources. Another 24% support this concept, which appears among SpaceX’s future business strategies, while 41% remained neutral.

The Reuters/Ipsos survey collected responses from 4,531 American adults nationwide through online methods, producing results with a 2 percentage point margin of error.

Financial markets are making intensive preparations as SpaceX approaches its historic $75 billion public trading launch, with brokers, exchanges and trading firms conducting round-the-clock system checks to prevent the technical disasters that disrupted previous major stock debuts.

The shadow of Facebook’s troubled 2012 market launch looms large over preparations, as that debut suffered from system failures that created hours of confusion about trade completions and ultimately resulted in hundreds of millions in losses for trading companies. Investment firms have spent weeks preparing to ensure SpaceX’s Friday market entry succeeds, especially with other major debuts from Anthropic and OpenAI anticipated later this year.

“It’s an historic event,” Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia, said. “I hope it trades successfully afterwards, for the market’s sake. If something like this comes out and trades down, not only will it cast a pall over the market in general, but over the other IPOs that are lining up for the rest of the summer.”

Although financial executives are hosting elaborate client celebrations and decorating their offices to promote the space company, those in critical positions at trading platforms, investment houses and brokerage firms remain focused on guaranteeing a seamless market launch. Demonstrating how deeply the Facebook experience affected the industry, one Wall Street executive involved in the IPO who spoke anonymously referenced continuing trauma from that earlier debut.

Leaders at trading platforms including major market makers like Citadel Securities and Jane Street have conducted extensive simulations and system stress tests, according to three sources with direct knowledge. Trading platform officials invited clients to participate in weekend practice IPO sessions throughout the past month, two sources revealed.

Lead underwriter Morgan Stanley holds the crucial position as the IPO’s stabilization agent, the firm responsible for opening the stock and maintaining orderly trading. Morgan Stanley did not respond to requests for comment.

Leaders at S&P Global, which provides technology to facilitate institutional investor allocations and collaborates with SpaceX’s underwriters on order processing, have continuously tested their systems given the transaction’s enormous scale.

Darren Thomas, head of enterprise solutions at S&P Global Market Intelligence, said the firm also used AI to make sure its code was operating efficiently.

“We really had to scale the infrastructure so that it could handle much larger volumes,” said Thomas. “We’ve never seen anything of this size before.”

Trading platforms have enhanced their infrastructure to manage increased volumes following the technology breakdown that disrupted Facebook’s $16 billion IPO. The exchange where it was listed paid almost $42 million in participant claims after they estimated collective losses of $500 million. Regulators also imposed a $10 million fine on the exchange.

During that same period, BATS Global Markets tried to launch its own stock on its trading platform, but severe technological problems forced BATS to completely abandon the offering.

The exchange has completely rebuilt its trading systems, enhanced its primary IPO technology Bookviewer in preparation for the SpaceX IPO, and established a backup trading platform in case its main technology encounters problems.

The exchange has previously conducted IPO practice sessions, including preparations before chip designer Arm Holdings’ 2023 debut. The exchange declined to comment.

Citadel, Jane Street, and other rapid-trading firms have performed multiple internal system tests to prepare for the exceptional volume of client orders, sources indicated.

S&P has spent the past six weeks stress-testing its infrastructure through multiple upgrades and live testing to boost capacity by 200% and improve response speeds. The company has not required system testing for other recent large IPOs, but SpaceX’s unprecedented magnitude made ensuring foolproof systems necessary, S&P executives stated.

Contributing to uncertainty, SpaceX has allocated an unusually high number of shares for individual investors — coinciding ironically with a significant decline in technology stocks amid concerns that the AI-driven market surge has become excessive.

“No one’s ever tried an IPO of this size, and no one has tried to place as much with retail,” said one individual close to the transaction, who asked not to be named. He added that the possibility of a “chaotic and volatile aftermarket” may cause some wariness among both institutions and individuals.

During standard IPOs, exchanges gather incoming purchase and sale orders before trading starts, involving investors repeatedly canceling orders and submitting new ones at varying prices as they assess market sentiment. Underwriters observe these orders and postpone the launch until they identify a balanced opening price where supply equals demand.

This procedure aims to prevent chaotic price fluctuations when stock trading begins, but even with underwriters’ careful management, opening-day trading remains unpredictable. Technology issues notably disrupted this process during the Facebook IPO, creating a massive backlog of unprocessed orders and hours of uncertainty regarding trade completion.

“Every investment management firm in the country is talking about and considering SpaceX,” said Jed Ellerbroek, portfolio manager at Argent Capital Management. “We all know Friday’s trading day is going to be crazy.”

A British manufacturer of health and safety technology equipment saw its stock value plummet nearly 15% on Thursday after announcing reduced revenue growth projections for fiscal 2027.

Halma, which produces health and safety devices, announced it anticipates low double-digit percentage organic revenue growth in constant currency for the year ending March 2027. This represents a significant slowdown from the 16% organic growth the company achieved in fiscal 2026.

The company has experienced strong performance largely due to its photonics division, which develops light-based technology for sensors and monitoring equipment. This includes systems used in data centers, where demand has surged due to artificial intelligence expansion.

However, analysts expressed concern about the future outlook. The company’s projections include approximately five percentage points of growth from the photonics division, which JP Morgan analysts indicated would likely disappoint investors.

Morningstar analyst Matthew Donen noted that Halma’s forecast suggests declining revenue growth rates for both the photonics division and other company segments.

Trading on the FTSE 100 index showed Halma shares falling to 3,962 pence as of 0825 GMT, making it the worst performer among blue-chip stocks that day.

Despite the concerning projections, the company reported strong results for the year that concluded March 31, with adjusted pretax profit climbing 23% to reach £564.5 million ($755.2 million).

BEIJING, June 11 – Technology company Xiaomi from China has submitted regulatory documents seeking authorization to manufacture an extended-range electric vehicle as part of its growing automotive portfolio, based on an announcement from the industry ministry released Wednesday.

The proposed vehicle addition requires government approval after a public review process that concludes on June 17.

The technology company, which entered the electric vehicle market recently but has quickly positioned itself as a formidable competitor to established manufacturers like Tesla, presently produces the battery-operated SU7 sedan and YU7 SUV models.

The Japanese sneaker company behind the iconic footwear featured in the movie “Kill Bill” is pursuing an ambitious worldwide expansion strategy, though financial experts caution that this growth plan might jeopardize the brand’s exceptionally high profit margins.

Onitsuka Tiger, known for the distinctive yellow and black sneakers worn by actress Uma Thurman in the 2003 film “Kill Bill” and versions connected to martial arts legend Bruce Lee, is establishing flagship retail locations across Europe and the United States.

The brand has already benefited significantly from international visitors to Japan, attracted by the country’s weakened currency that makes shopping more affordable. Revenue increased by one-third during the January through March period, achieving profit margins of approximately 40% – the strongest performance among all of the parent company’s divisions.

These profit levels reach “a level far closer to luxury brands than traditional sporting goods companies,” according to Mark Chadwick, an analyst who publishes on Smartkarma. He cautioned that the brand’s new organizational structure could threaten its substantial margins.

The “exceptional margins” may prove harder to maintain as operating as an independent business brings additional expenses, Chadwick explained. The company also faces implementation challenges with its “capital-intensive” approach of establishing flagship retail locations.

The brand’s history spans nearly eight decades, beginning with a footwear company established in Kobe in 1949 by Kihachiro Onitsuka. However, the Mexico collection featuring the brand’s signature stripes didn’t debut until 1966, after earlier products like basketball footwear.

In the 1960s, Nike co-founder Phil Knight connected with company representatives and started bringing the firm’s running shoes to American markets.

Following a break in operations, the parent company revived Onitsuka Tiger in 2002 throughout Europe, bringing back its traditional styling as a lifestyle brand.

“Onitsuka Tiger was able to benefit from consumers switching their preference from maximalist shoes, which have a lot of cushioning, to minimalist shoes,” explained Ivan Su, an analyst at Morningstar.

The brand’s appeal has grown dramatically in recent years, supported by renewed interest in vintage-style athletic shoes. The company named Momo from K-pop group TWICE as its brand representative in 2022.

On Wednesday, the parent company, valued at approximately $20 billion, announced that Onitsuka Tiger would move to OT Group, a completely owned subsidiary, through a corporate division.

Company officials stated no public offering plans exist. However, some market watchers believe the separation makes it simpler for the parent company to modify ownership arrangements if needed.

“The move does not unlock value immediately, but it lays the groundwork for the market to recognise OT as a fundamentally different business with fundamentally different economics,” Chadwick noted.

Operating nearly 200 retail locations globally, Onitsuka Tiger intends to open additional stores this year in markets including China, Italy and South Korea. The brand plans to return to the United States next February with a Los Angeles location, three years after shutting down its New York store.

Japanese culture holds worldwide appeal, said Glenn McMahon, a fashion and retail brand consultant in Los Angeles.

“The brand benefits from … growing consumer interest in alternative sneaker brands and increasing fatigue with the dominance of Nike and Adidas,” McMahon explained.

Product designs featuring elements like pink cherry blossoms highlight the company’s Japanese heritage. The brand offers a premium “Nippon Made” collection crafted by hand in a small western Japanese town.

Onitsuka Tiger footwear has “the vintage feel with the novelty to the U.S. market and the exotic vibe,” said American college student Kaito Hikino.

During a family trip to Japan this year, he purchased Mexico 66 TGRS sneakers for his girlfriend and noted that most of his female friends in the United States own Onitsuka Tiger shoes.

The company sells clothing and accessories at current stores in upscale areas such as London’s Regent Street and Paris’s Champs-Elysees.

“We think some level of prior investment will be needed, including for opening directly managed stores in major U.S. cities and strengthening advertising,” Nomura Securities analyst Shintaro Umeda wrote in a research note.

“When looking online for must-dos in Japan, getting Onitsuka Tigers is always talked about as a must-do,” said Brazilian Ana Lebl, who visited Japan after completing high school in the United States.

“I had found them online about a year ago through resellers but they’re always much more expensive,” Lebl explained after purchasing Mexico 66 SD sneakers in Tokyo last week.

“We would expect steeper sales growth if the firm accelerated store openings compared to its currently cautious approach,” SMBC Nikko analyst Kenya Matsuo wrote in a research note.

However, major competitors including Nike, Adidas and Puma offer their own simple sneaker collections in an increasingly crowded market of classic-inspired designs.

Fashion trends can be unpredictable, and Onitsuka Tiger might stumble, one analyst warned.

“We have seen a lot of companies doing something like what Onitsuka Tiger has done with the Mexico 66 model and fashion trends are outside their control,” Su of Morningstar said.

“The Onitsuka Tiger brand has been popular for a while, but we think that might fade in the coming years, affecting margins.”

A Malaysian budget airline has delayed the debut of a new international flight route because of ongoing tensions in the Middle East region.

AirAsia X announced Thursday that it is pushing back the start date for its planned service connecting Kuala Lumpur with Bahrain and continuing to London’s Gatwick airport. The low-cost carrier had originally targeted a June launch for the route.

The airline now anticipates beginning the service sometime between August and September, depending on how market conditions develop, according to a company statement released Thursday.

Travelers who had booked flights on the postponed route will receive either full refunds or the option to reschedule their trips, the airline said.

Despite the delay, the budget carrier emphasized its ongoing commitment to establishing operations in Bahrain, though officials said they must take a cautious approach given current circumstances.

“Bahrain continues to play an important role in our long-term growth plans and regional connectivity strategy, and we remain focused on launching services to both Bahrain and London Gatwick when the operating environment is better aligned with our operational and commercial objectives,” said AirAsia General Manager Benyamin Ismail.

The airline has faced significant financial challenges recently due to fluctuating fuel costs. Earlier this year, AirAsia reported quarterly losses after being forced to reduce its flight schedule by 10% and implement fuel surcharges of approximately 20%.

Elon Musk is scheduled to make a virtual presentation at a technology conference hosted by semiconductor equipment leader ASML on Thursday, where he will outline his ambitious Terafab project – a proposed massive chip manufacturing facility designed to serve Tesla and the soon-to-be-public SpaceX.

The timing coincides with the anticipated pricing announcement for SpaceX’s initial public offering, which industry observers believe could become the largest IPO on record.

According to an ASML spokesperson, “Musk will share his vision on AI, robotics, space, and semiconductor manufacturing.”

The Dutch company characterizes its annual technology gathering as an “internal event for employees only” and declined to provide specific timing for Musk’s appearance. The conference is scheduled to conclude around 5 p.m. local time (1500 GMT).

ASML’s chief executive Christophe Fouquet previously acknowledged having conversations with Musk regarding the Terafab initiative, which represents a potentially significant new client for the European market leader. The company holds a dominant position in the lithography equipment sector, manufacturing specialized machines that create the intricate circuitry patterns on computer chips.

Musk has indicated that SpaceX plans to partner with Intel on the Terafab venture, with the facility ultimately producing semiconductors for both SpaceX operations and Tesla’s Optimus robotic systems.

During March presentations, Musk detailed preliminary plans featuring a Texas-based development facility that would produce lithography masks – templates containing chip patterns used by ASML equipment – enabling rapid prototyping of both logic and memory semiconductors within a single location.

“Musk and his team are becoming part of the broader semiconductor ecosystem, and many companies, including ASML, will collaborate on this initiative,” the company stated.

In a June 6 post on X, Musk praised ASML as “arguably the greatest company in Europe” and suggested it deserves to be “treasured and supported.”

Ford Motor Company announced Thursday it will pull more than 548,000 vehicles off American roads due to a potentially dangerous defect in their interior consoles, according to the U.S. National Highway Traffic Safety Administration.

The problem stems from deteriorating chrome plating on the center console that can bubble and flake off as it ages, creating sharp edges that pose an injury risk to anyone who touches them, safety officials explained.

The safety recall impacts select Ford Expedition models from the 2018 through 2024 model years, according to the NHTSA. Officials say the defect appears to stem from a supplier who manufactured the chrome console trim using methods that fell short of Ford’s required standards.

Ford dealerships will examine affected vehicles and swap out faulty center consoles at no cost to owners, the safety administration confirmed.

British pharmaceutical giant GSK has announced its largest acquisition in company history, agreeing to purchase U.S. biotech firm Nuvalent for $10.6 billion in a move designed to strengthen its cancer treatment portfolio and compete with industry leaders AstraZeneca and Roche.

The acquisition, internally referred to by the code name Nashville, is set to finalize during the third quarter and will add two lung cancer therapies to GSK’s pipeline that may receive U.S. regulatory approval within the year.

The massive purchase aligns with the vision of CEO Luke Miels, who assumed leadership at the beginning of this year and has prioritized expanding the company’s cancer treatment capabilities. GSK had previously exited the oncology market ten years ago through an asset exchange worth more than $16 billion with Novartis.

This strategic move is also intended to help balance potential revenue losses from upcoming patent expirations later this decade, particularly for the HIV medication dolutegravir. Industry analysts project GSK’s total pharmaceutical revenue will reach £34 billion ($45.53 billion) this year.

The Nuvalent purchase represents an escalation of GSK’s gradual return to cancer treatment development, following earlier investments including a $5.1 billion acquisition of Tesaro in 2018, a nearly $2 billion purchase of Sierra Oncology, and several multi-billion-dollar licensing agreements.

“Our strategy has been a brick-by-brick building approach,” Miels explained to reporters on Tuesday following the announcement of the Nuvalent agreement.

James Eugene, an analyst at GSK-shareholder Verso Investment Management, characterized Nuvalent as “a very large brick” in the comprehensive rebuilding effort.

Investment professionals expressed support for the strategy while noting the unprecedented scale of this particular deal.

“The scale is obviously much larger than what GSK has done historically,” commented Elena Meng, portfolio manager at Gabelli Funds, which maintains holdings in U.S.-listed GSK depositary receipts. She noted that while the oncology strategy was already established, “What’s new is the size of the commitment.”

According to a source familiar with the transaction, multiple companies had competed for Nuvalent, which partially accounts for the 40% premium above the biotech firm’s stock price before the deal announcement.

The source, who requested anonymity due to lack of authorization to discuss the matter publicly, revealed that Nuvalent had attracted attention from major pharmaceutical companies for approximately 18 months, as it was among the few firms with advanced-stage cancer treatments approaching regulatory approval.

Several investors viewed the return to oncology as correcting a previous strategic error made under former CEO Andrew Witty, when the company abandoned cancer treatment development to concentrate on vaccines, respiratory medications, and consumer health products.

This strategic pivot back to oncology began under Miels’ predecessor Emma Walmsley, who took leadership in 2017.

“It was definitely a mistake in 2015 to sell the oncology franchise,” stated Markus Manns, portfolio manager at GSK shareholder Union Investment.

Manns added that the Nuvalent acquisition provides lower-risk products that collectively could generate $3 billion to $4 billion in peak sales, helping offset the loss of exclusivity for HIV treatments and supporting the company’s goal of reaching £40 billion in sales by 2031.

GSK does not anticipate competing with Merck, AstraZeneca, or Roche across the entire oncology landscape but considers it a significant growth opportunity. The Nuvalent deal will contribute two advanced-stage medications to its development pipeline.

“A specialty business without an oncology component is not a complete proposition,” GSK’s chief scientific officer Tony Wood explained to Reuters prior to the deal announcement.

GSK must now demonstrate that its lung cancer treatments, which target ROS1- and ALK-positive mutations, can effectively compete with established competing medications from U.S. pharmaceutical company Pfizer and Switzerland’s Roche, while also proving their safety profile.

Barclays analysts acknowledged the acquisition’s strategic logic but warned that neither treatment appears to possess “mega blockbuster” potential.

GSK anticipates that focused patient populations could represent substantial opportunities if the treatments allow younger, active patients to remain on therapy for extended periods with reduced side effects compared to current options.

Ketan Patel, fund manager at London-based family investment office Whitefriars, suggested that while the Nuvalent acquisition represents significant progress, GSK requires additional deals to establish genuine competitiveness in oncology.

“GSK is playing catchup,” he observed, referencing Roche and Merck’s market leadership. “I think they are way behind and unlikely to catch up to those names, and will in all probability have to pay up to play in the same arena.”

India’s Tata Consultancy Services announced Thursday it has formed a strategic partnership with Anthropic to create an alliance focused on expanding artificial intelligence capabilities for enterprise clients, according to the nation’s biggest software services company.

This collaboration emerges as investors express worry that artificial intelligence technologies could disrupt the conventional labor-heavy approach used by India’s $315-billion information technology industry. Earlier this year in February, Indian IT service companies saw their combined market value drop by over $62.8 billion, partially due to Anthropic’s introduction of an AI agent platform.

The Tata group subsidiary plans to train 50,000 staff members on Anthropic’s Claude technology, while the two organizations will work together to bring AI-powered solutions to heavily regulated industries.

During the company’s annual shareholder meeting on Tuesday, Chairman N Chandrasekaran indicated that TCS anticipates IT firms will reduce their hiring pace as the organization transitions toward maintaining equivalent numbers of human workers and AI systems within its operations.

The company eliminated over 12,000 positions last July, with total workforce numbers declining by more than 23,000 employees during the fiscal period that concluded in March 2026.

A competing IT services provider, Infosys, established a comparable agreement with Anthropic in February.

America has claimed the title of the world’s biggest oil exporter, overthrowing a global hierarchy that Saudi Arabia and Russia controlled for decades. This transformation strengthens U.S. companies’ control over energy markets while Washington’s conflict with Iran continues to reshape international energy commerce.

This rise to the number one position represents a remarkable turnaround for a nation that relied on Middle Eastern petroleum for many years and endured an oil blockade from certain OPEC nations in 1973 as punishment for American backing of Israel.

The nation’s energy landscape started transforming after 2010, when petroleum and natural gas production from shale rock surged, initially establishing America as the leading gas producer globally, followed by becoming the top oil producer.

Due to the U.S.-Iran conflict hampering Saudi petroleum shipments since February 2026 and Russian oil deliveries facing Ukrainian drone strikes plus American sanctions on Moscow following Ukraine’s invasion, America has emerged as the globe’s premier oil exporter.

American shipments of crude and refined products rose to approximately 10.5 million barrels daily in May, supported by strong production and strategic reserve releases, according to vessel tracking service Vortexa data. This made America the leading global exporter for three consecutive months. Russian shipments totaled 7 million barrels per day in May based on calculations, while Saudi Arabia’s exports reached 5.9 million barrels daily, Vortexa reported.

For context, Saudi Arabia exported roughly 8.1 million barrels per day in 2025, while America sent out 6.6 million barrels daily, and Russian exports were approximately 5.8 million barrels per day, Vortexa data indicated.

“Washington has a new tool they didn’t realize they had before the Iran war — energy exports,” said Michelle Brouhard, head of policy at ship tracking firm Kpler.

America’s new dominance might reduce the pricing influence that the Organization of Petroleum Exporting Countries and its partners have traditionally wielded over oil markets. The president has repeatedly criticized OPEC for market manipulation. The organization also took a hit in May when one of its largest members, the United Arab Emirates, departed after almost 60 years of membership.

Leading oil export status will provide Washington with a potent new bargaining chip in discussions with allies and competitors, complementing its global military superiority and financial market control through the dollar’s position as the world’s reserve currency.

“You can see now the leverage the United States has over some of these countries because they are dependent on the U.S. for their oil or gas,” Brouhard noted, explaining that America was Europe’s largest crude supplier and second-biggest distillate provider.

European Union officials, who initially celebrated the American oil and gas surge as an alternative to Russian and Middle Eastern sources, have become more cautious and raised concerns about excessive reliance on American corporations.

This caution emerged as the EU disagreed with the American administration regarding trade duties and environmental policies.

Moscow is also struggling to conceal its irritation.

American energy firms were the primary winners from the Strait of Hormuz closure, according to Igor Sechin, the leader of Kremlin oil giant Rosneft and one of President Vladimir Putin’s closest associates, who made this statement recently.

However, well before the U.S.-Iran conflict began, both Saudi Arabia and Russia were falling significantly behind American companies in production increases.

Crude and liquid fuel production in America has almost tripled to roughly 22 million barrels daily since 2000. Saudi crude and liquid output has mainly varied between 10 million and 12 million barrels per day based on OPEC quotas from 2000 to 2026.

Russian oil and liquid production jumped to 10 million barrels daily from 6 million between 2000 and 2010, increased by another 2 million barrels daily during the 2010s, but has mostly stalled and dropped below 10 million barrels per day since 2020.

Worldwide oil consumption reached 104 million barrels daily last year from 87 million in 2010, indicating that the majority of global growth over the past 15 years has been primarily satisfied by America’s oil expansion.

In 2015, America eliminated a 40-year export prohibition that had existed since the Arab oil embargo, unleashing its oil boom to international markets. A decade later, it has become the largest oil exporter, disproving doubters who believed the growth would be temporary as reserves depleted.

Unlike Saudi Arabia and Russia, where governments completely or partly determine production and export goals, America’s boom depends on private companies’ choices and is mainly profit-driven.

When oil costs increase, American companies respond by boosting production, helping lower prices. When prices weaken, American firms reduce output, supporting prices, explained Kenneth Medlock III, a fellow in Energy and Resource Economics at the Baker Institute for Public Policy.

“In many ways, it’s kind of a similar role to what OPEC and Saudi Arabia have been doing with spare production capacity, but it’s more of a market mechanism than a strategic device,” he explained.

European nations have depended heavily on America since the Ukraine conflict started in 2022. The continent purchased about 47% of American oil exports this year so far, compared with 37% in 2021.

Asian nations, which previously bought most of their crude from the Middle East, are now increasingly depending on America for supplies. Asia represented about 46% of American oil exports in May, compared with around 37% last year.

A major Chinese industrial city has unveiled an ambitious strategy to overhaul its automotive manufacturing sector, with plans to court leading electric vehicle companies as part of a broader transformation effort extending through 2030.

The northeastern city of Changchun, which houses the nation’s most established automaker FAW Group, published the preliminary proposal this week through its industry and information technology bureau. The initiative represents a significant shift for a region built around traditional automotive manufacturing.

According to the proposal, several major developments are anticipated in China’s automotive landscape:

• The nation’s car manufacturing sector is projected to undergo substantial consolidation, with industry analysts expecting the current 71 automaker groups to shrink to approximately 15 by 2030.

• FAW Group has seen declining production volumes and sales figures in recent years, creating potential pressure for organizational restructuring of the government-owned company.

• City officials plan to capitalize on FAW’s corporate headquarters location to draw partnerships with companies like Leapmotor for developing new vehicle offerings.

• Municipal leaders are specifically courting rapidly expanding automakers including BYD and Xiaomi to establish northern manufacturing facilities, advanced vehicle research and development centers, or critical component manufacturing operations as part of efforts to broaden the region’s industrial foundation.

Vietnam’s biggest corporation by market value is pushing forward with an ambitious plan to construct what it describes as the globe’s largest stadium, despite concerns about whether sufficient demand exists to support the enormous venue.

The company is speeding up work on the 135,000-seat facility located approximately 25 kilometers (15.5 miles) south of central Hanoi, with crews laboring continuously to meet a July 2027 deadline, according to a company representative who spoke with Reuters during a recent site tour. This timeline represents a one-year acceleration from the original schedule announced in December.

The venue will boast “the world’s largest seating capacity” and will include the biggest completely retractable roof ever built, according to the Vietnamese conglomerate, which is simultaneously pursuing various other major initiatives including a high-speed rail line, urban development projects, and wind energy facilities.

Currently, the International Olympic Committee recognizes the Rungrado Stadium in Pyongyang, North Korea, as the world’s largest venue, with an official capacity of 150,000, though some analysts have disputed this number and estimated the actual seating at under 120,000.

The Vietnamese company stated that the project’s massive scope reflects ambitions to accommodate major sporting competitions and cultural performances, including musical concerts.

“While football is hugely popular in Vietnam, it is unlikely that a 135,000-seat stadium could be justified on domestic football demand alone,” said James Walton, sports business group leader at Deloitte Asia Pacific. He pointed out that Vietnam’s premier V.League 1 drew an average of fewer than 6,000 spectators per game during the 2023-24 season.

The company refused to provide financial projections but expressed confidence that the facility would achieve commercial viability over time.

The corporation is dealing with significant financial pressures from its debt obligations, which totaled $36.7 billion last year, representing more than 4% of Vietnam’s entire private sector debt in 2025. This amount does not include additional borrowing by privately affiliated entities.

The Trong Dong Stadium, which takes its name from Vietnam’s traditional bronze drum, forms part of the company’s $35-billion initiative to create an “Olympic Sports City” capable of hosting premier international competitions across more than 9,000 hectares (22,200 acres) on the capital’s periphery.

“Being part of a broader urban development can improve the project’s long-term financial sustainability,” said Walton, who observed that most contemporary national stadiums typically accommodate between 60,000 and 80,000 spectators.

This initiative represents part of an extensive campaign to upgrade Vietnam’s infrastructure and maintain economic expansion of at least 10% per year through the decade’s end, which constitutes an official objective of the ruling Communist Party.

Government officials have revealed hundreds of major projects valued at an estimated $200 billion through 2030, encompassing airports, seaports, bridges and rail systems.

Quynh Nguyen, finance lecturer at Hoa Sen University in Ho Chi Minh City, said modernization was essential, but urged careful consideration of banking sector exposure and financing risks.

“In a growing country like Vietnam, infrastructure often needs to precede demand,” said Tran Thi Mong Tuyen, a researcher at the Hawaii-based Pacific Forum, while also highlighting concerns about underutilized infrastructure and postponed investment returns.

South Korean authorities have imposed a record-breaking 625 billion won ($409.30 million) penalty on e-commerce company Coupang following a major customer data breach and unauthorized personal information gathering, marking the nation’s heaviest corporate fine for data privacy violations.

The Personal Information Protection Commission announced that the company, which trades on the New York stock exchange, exposed personal information belonging to more than 33 million customers and did not identify the security breach within the legally mandated 72-hour window.

Based on calculations, the financial penalty represents 1.4% of Coupang’s 45 trillion won revenue for 2025.

“This accident occurred due to Coupang’s lack of safety measures and systems, not sophisticated hacking,” Song Kyung-hee, the chairperson of the privacy regulator, told a briefing on Thursday.

Following the penalty announcement, Coupang issued an apology for creating public and customer concerns.

The company expressed disappointment, stating that “we regret that our proactive measures to prevent secondary harm from last year’s data leak incident, as well as our explanations based on clear facts, were not sufficiently reflected” in the regulator’s decision.

The Seattle-headquartered company earns the majority of its income in South Korea through rapid delivery services for groceries, meals and various merchandise.

This punishment stems from a government-conducted investigation completed earlier this year that attributed the security failure to inadequate management oversight.

The science ministry previously revealed that a former worker who held Chinese citizenship took a security key and obtained unauthorized entry to customer profiles.

Song explained that Coupang’s protection systems enabled unauthorized access to all customer personal data, continuing even after the individual departed from the organization.

The company additionally failed to notice abnormal spikes in customer database traffic until a customer complaint brought it to their attention, she noted.

In a separate violation, regulators determined the company’s promotional activities unlawfully gathered online behavior data from approximately 11 million customers without obtaining proper consent, Song reported.

The data breach investigations contributed to diplomatic tensions with Washington, as concerns arose that Korean officials may have treated the U.S.-listed corporation too harshly while both nations work out specifics of a trade agreement reached last year.

South Korea maintained that its Coupang investigation represents neither a trade nor security matter and should remain distinct from ongoing Washington discussions.

According to Seoul-based IM Securities, the company commands roughly 40% of South Korea’s delivery market, representing the dominant position among competitors.

“Coupang has grown its e-commerce service significantly based on vast customer data,” Song said. “But the company did not have a system to protect and manage customer information despite its business scale.”

Singapore’s largest financial institution by assets, DBS Group, announced Thursday its plans to launch a digital gold investment service for everyday customers as precious metal demand increases and Singapore works to establish itself as a major gold trading center.

The new service arrives while gold continues attracting investors seeking value protection despite recent market fluctuations. The precious metal reached an all-time high of $5,600 per ounce earlier this year due to inflation worries, international tensions, and market instability, though spot gold dropped to $4,111.95 on Wednesday, marking its lowest point since March 23 and representing a 27% decline from its peak.

The financial institution, which also holds the position as Southeast Asia’s largest bank, announced in a release that DBS Physical Gold Tokens will become accessible via its digibank mobile application during the latter half of 2026.

According to the bank, this service will mark Singapore’s first offering allowing everyday customers to digitally access, possess, and exchange tokenized physical gold using one unified platform.

The tokenization process involves converting ownership of tangible assets into digital tokens that can be electronically traded.

Every token will represent one gram of actual gold stored by DBS in a designated Singapore vault. As of Thursday, one gram of gold carries a value of approximately S$200 ($155).

The bank stated that customers will have the ability to purchase smaller gold quantities, conduct transactions continuously, and exchange tokens for actual gold.

“Gold as an asset class has taken off in recent years,” said James Tan, the bank’s group head of investment products and advisory services, adding that tokenization would allow more retail customers to invest in gold.

DBS indicated it is considering options to feature the token on its DBS Digital Exchange for qualified investors and institutional clients.

According to DBS, physical gold investments among its wealth management customers have increased by more than 100% during the previous three years.

Asian stock markets experienced declines following a continued selloff in artificial intelligence companies that sent U.S. markets tumbling.

U.S. market futures showed gains while oil prices jumped more than $1 per barrel.

Japan’s Nikkei dropped 0.5% to 63,878.60, while South Korea’s Kospi declined 0.2% to 7,720.75.

Hong Kong’s Hang Seng managed a slight 0.2% increase to 24,468.82, though the Shanghai Composite index fell 0.2% to 3,983.80.

Australia’s S&P/ASX 200 also dropped 0.2% to 8,632.50.

Taiwan’s Taiex declined 0.4%.

On Wednesday, Wall Street’s previous high-performing stocks remained under intense pressure.

The S&P 500 fell 1.6% for its first consecutive decline in three weeks, closing at 7,266.99 and returning to early May levels.

The Dow Jones Industrial Average plummeted 953 points, or 1.9%, to 49,918.78. The Nasdaq composite led market losses with a 2% drop to 25,169.50.

Wall Street has experienced volatility since last week when AI stocks shifted from record-breaking gains to sudden declines. Concerns center on whether stock prices rose too rapidly due to artificial intelligence enthusiasm. The current question is whether this downturn has eliminated excessive investor optimism or signals the beginning of a prolonged decline.

Super Micro Computer, an AI server manufacturer, plunged 28% after announcing Tuesday evening plans to raise $7 billion through stock and convertible preferred stock sales. Such fundraising typically occurs when stock prices are elevated and can reduce existing shareholders’ ownership percentages.

Micron Technology experienced dramatic swings, moving from an early 4% loss to modest gains before settling at a 4.7% decline. The company has endured extreme volatility, dropping 7.7% last Thursday, falling another 13.3% Friday, then surging 9.9% Monday. Despite these fluctuations, the memory chip manufacturer’s stock remains up 212.5% year-to-date.

Nvidia, the semiconductor company that has grown to nearly $4.9 trillion in value due to the AI surge, was the S&P 500’s biggest drag after falling 3.7%. Broadcom, another AI beneficiary, was the second-largest negative influence with a 5.1% decline.

AI stock pressure may also stem from investors withdrawing funds in preparation for upcoming high-profile U.S. market debuts of several AI companies. SpaceX’s initial public offering could occur later this week, for example.

Companies with substantial fuel expenses also weighed on markets. United Airlines dropped 6.2%, while cruise operator Carnival fell 6.3% as oil prices climbed due to escalating conflict in the war with Iran.

Brent crude oil prices rose 1.8% to $93.10 on Wednesday after President Donald Trump warned Iran would “pay the price” for stalled war negotiations. The conflict has effectively closed the Strait of Hormuz to oil tankers, preventing Persian Gulf crude deliveries to global customers.

Rising oil costs have increased inflation, with Wednesday’s report showing U.S. consumer prices jumped in May at the fastest pace in three years.

Traders anticipate the Federal Reserve will need to raise its benchmark interest rate at least once this year due to pricing pressures and robust job market conditions.

Elevated yields can slow economic growth and reduce investment values across stocks and cryptocurrencies. They particularly impact investments considered overpriced, with some critics labeling AI as a bubble with excessive investment inflation.

Early Thursday, Brent crude oil gained $1.34 to $94.44 per barrel. U.S. benchmark crude oil increased $1.50 to $91.53 per barrel.

The U.S. dollar weakened to 160.44 Japanese yen from 160.56 yen late Wednesday. The euro strengthened to $1.1555 from $1.1537.

Artificial intelligence company OpenAI is reportedly exploring significant price reductions for its services as it battles for market share with competitor Anthropic, according to a Wall Street Journal report published Wednesday.

Sources familiar with the discussions told the publication that the company may cut costs for tokens, which serve as the standard measurement for pricing artificial intelligence services. However, the conversations remain ongoing and subject to change, the report noted.

The Reuters news agency stated it was unable to independently confirm the Wall Street Journal’s reporting.

The American dollar experienced instability on Thursday following fresh military action by the United States in the Middle East, which weakened market sentiment, while May’s consumer inflation spike to a three-year peak left investors concerned about Federal Reserve policy direction.

Currency trading has remained muted throughout the week as market participants balanced the tenuous Middle East ceasefire against renewed retaliatory strikes between America and Iran, diminishing expectations for an imminent peace settlement.

The euro traded at $1.1553, moving slightly higher from last week’s 10-week bottom, though it has surrendered most advances made since April’s early ceasefire agreement. Market attention will focus on the European Central Bank’s policy session later today, with expectations of rate increases to combat inflation.

The British pound held at $1.33905. The dollar index, tracking the American currency versus six major trading partners, declined to 99.903 following military confirmation of completed strikes on various Iranian targets.

America launched another wave of strikes during overnight hours in Iran, according to military officials, while President Donald Trump promised additional attacks without a peace agreement.

This recent escalation maintained market nervousness, driving oil costs upward. Brent crude climbed more than 2% to reach $95.40 per barrel.

However, market responses showed less dramatic swings than previously, with the dollar staying relatively calm during early Asian sessions.

“We still have a bit of news fatigue in the market, this kind of escalation a few weeks ago would probably have had Brent back up through $100 a barrel and the dollar surging,” said Nick Twidale, chief market analyst at ATFX Global.

“It comes down to the markets craving a bit of certainty again,” said Twidale. “Is this conflict and closure of the Strait going to be the new status quo … or another ‘negotiating tactic’ that brings peace hopes back to the table.”

Despite the Consumer Price Index climbing 4.2% over the 12-month period ending in May—the steepest increase since April 2023—economists maintain that conditions for monetary tightening remain challenging to meet.

Core CPI advanced 0.2% monthly after April’s 0.4% rise, supporting optimism that energy-related price pressures might stay controlled.

James Knightley, chief international economist at ING, noted that labor costs represent corporate America’s biggest expense, and continued wage growth moderation should help reduce core inflation pressures.

“This should all help to keep inflation expectations in check, so while we no longer expect the Fed to cut interest rates this year given improved economic momentum, we don’t expect a rate hike either,” Knightley said.

Market participants have completely factored in a 25-basis-point increase for December, representing a dramatic shift from earlier expectations of two rate reductions this year before the Iran conflict began in late February.

The Japanese yen traded at 160.52 against the dollar, keeping traders alert for potential official intervention from Tokyo.

Bank of Japan Governor Kazuo Ueda has been admitted to hospital for medical care and will be absent from the June 15-16 policy gathering, where the central bank is anticipated to implement rate increases.

“We do not expect Ueda’s absence to impact on the BOJ’s policy decision,” said Carol Kong, a currency strategist at Commonwealth Bank of Australia. “We and the market continue to expect a 25bp rate hike next week.”

Among other currencies, the Australian dollar traded at $0.7006 after reaching a nine-week minimum earlier in trading. The New Zealand dollar remained stable at $0.5797.

SINGAPORE, June 11 – Stock markets throughout Asia dropped Thursday morning, dragged down by Wall Street’s decline after US inflation data came in higher than anticipated, while fresh American military action against Iran pushed oil prices higher.

The MSCI Asia-Pacific index excluding Japan slipped 0.9%, with South Korea’s KOSPI leading declines with a 3% fall. Futures for the S&P 500 traded 0.3% in the red.

America launched new military strikes targeting several Iranian locations, according to US military officials Wednesday, coming just hours after President Donald Trump promised additional attacks unless a peace agreement is reached. Iran responded by announcing it would shut down the Strait of Hormuz. When Asian trading opened, Brent crude jumped 2% to reach $94.93 per barrel.

Market analysts suggest that Asian equities which posted the strongest gains over the previous two months may continue their recent slide, as investors doubt whether the elevated profit growth projections that fueled earlier rallies can be sustained.

“Given already stretched valuations, these extreme bullish expectations set a vulnerable backdrop for momentum in Korea, Taiwan and the Asia tech sector,” stated Rupal Agarwal, Asia quant strategist at Bernstein in Singapore, in a client note.

Reducing holdings in these equities would be “most prudent,” she continued, observing that “the re-escalation on the war front could further accelerate this unwind.”

During Wednesday’s session, the S&P 500 declined 1.6% while the Nasdaq Composite fell 2.0% following reports that US inflation picked up pace last month at its quickest rate since April 2023, though matching market forecasts. Brent crude finished at $93.10 per barrel, gaining $1.65 or 1.8%, as President Donald Trump warned of potential renewed strikes against Iran.

The US dollar index, tracking the currency’s performance versus six major counterparts, remained stable at 100.03, staying within the narrow band where it has traded over the past week. Safe-haven demand has pushed the world’s primary reserve currency to its highest point since US-Iran ceasefire talks began in early April.

At the same time, market bets on when the next interest rate increase might occur shifted slightly, though sentiment remains evenly split. Federal funds futures now indicate a 51.6% likelihood that the Federal Reserve will raise rates at its October 28 two-day session, compared to yesterday’s 50.1% odds that the central bank would wait until December, based on CME Group’s FedWatch tool.

The 10-year US Treasury yield climbed 2.6 basis points to 4.564%.

Bitcoin declined 0.5% to $61,445.19, while ether dropped 0.6% to $1,619.04, as the pending SpaceX IPO prompted investors to move away from cryptocurrencies and other high-risk investments.

Gold fell 0.3% to $4,059.59.

A critical material shortage is threatening the expansion of artificial intelligence data centers globally, as China tightens export controls on indium phosphide, a compound essential for manufacturing high-speed optical components.

The situation became urgent enough that Coherent’s CEO Jim Anderson joined a U.S. business delegation accompanying President Donald Trump to China, partly to address delays in Chinese export licensing for the strategic material, according to three sources with knowledge of the matter.

Trade representatives from both nations also discussed the export control issues during meetings in Seoul before Trump’s May 14-15 summit with China’s President Xi Jinping, two U.S. government officials and a person briefed on the discussions confirmed.

The compound, known as InP, has become what experts describe as a powerful trade tool for Beijing that could significantly slow AI data center construction worldwide.

“InP is one of several supply chain bottlenecks collectively gating AI data centre buildouts,” explained Konrad Wang, a research analyst at SemiAnalysis.

As artificial intelligence demands grow rapidly, indium phosphide has become increasingly valuable because it’s an irreplaceable component in new photonic technology that uses light through optical fibers rather than electrical signals through copper wiring for data centers.

Major technology investments reflect this shift, with Nvidia announcing $2 billion investments in both Coherent and Lumentum in March. Custom-chip manufacturer Marvell Technology also acquired semiconductor startup Celestial AI last year to access its photonics expertise.

However, China’s export limitations on InP that started in February 2025 have created significant obstacles for companies racing to develop the fastest and most energy-efficient AI data center components.

China’s commerce ministry did not respond to requests for comment.

Beijing’s control over this material demonstrates its willingness to expand beyond its established rare earth export restrictions, which have already disrupted global automotive, semiconductor and aviation supply chains amid ongoing trade tensions with Washington.

“Beijing is developing a more granular ‘materials chokepoint’ toolkit,” noted Paul Triolo, a partner at consulting firm Albright Stonebridge Group.

“Rather than blocking finished photonics products outright, it can slow or condition the export of the upstream compounds, substrates, metals … that determine whether the optical-module ecosystem can scale quickly enough to meet hyperscaler demand.”

China dominates indium production globally, accounting for 70% of worldwide output as of 2024, according to U.S. Geological Survey data.

The impact is spreading throughout the industry. AXT, the world’s second-largest InP substrate producer and a key Coherent supplier, stated in May that “InP export permits represent the most significant challenge we currently face.”

The company, which produces most of its InP substrates in China, reported that its Chinese subsidiary only obtained its first export permits last June and faces a substantial order backlog.

Wang from SemiAnalysis said “the restrictions ripple through the entire optical supply chain,” affecting companies beyond AXT and Coherent.

Lumentum has sold out its production through 2028 despite increasing output fourfold, while Taiwanese optical manufacturers VPEC and LandMark Optoelectronics have experienced InP substrate supply disruptions due to AXT permit delays, according to Wang.

Since China implemented the InP export restrictions, the average cost for a 6-inch InP wafer has jumped 250% to $5,000.

Facing increased costs and extended supply disruptions, at least two major U.S. photonics chipmakers have contacted industry organizations seeking assistance with export licenses, a source familiar with the situation reported.

American photonics companies are attempting to develop their own InP substrate production and find alternative suppliers like Japan’s Sumitomo Electric Industries. However, capacity expansion is limited and slow, as new manufacturing facilities typically require two to three years to become operational, analysts explained.

Coherent announced in May it would double its InP wafer capacity at its Texas facility this year and plans to more than double that capacity again by the end of 2027.

AXT, Coherent, Lumentum, VPEC and LandMark did not respond to requests for comment. LandMark signed a long-term InP supply agreement with Sumitomo in April.

Sumitomo told reporters it had not experienced any production impact from China’s InP export controls thus far.

However, a person familiar with China’s photonic chip industry noted that Sumitomo uses much of its InP substrate production internally, leaving the broader global market undersupplied.

Market leaders AXT and Sumitomo together control nearly 80% of global InP substrate manufacturing, while JX Advanced Metals holds approximately 10% of the market.

China’s export restrictions have opened opportunities for domestic InP substrate manufacturers, with Yunnan Germanium, Guangdong Xiandao and Zhuhai Dingtai Xinyuan leading the local market.

Many Chinese companies are rapidly expanding production capabilities. Yunnan Germanium announced a 189 million yuan ($28 million) investment in April to increase production capacity to 450,000 individual InP wafers annually. The company’s 2025 annual report showed InP wafer shipments increased by 74%.

Guangdong Xiandao also initiated a new investment project this year through its subsidiary Guangdong Xianrui, targeting annual production of 40 tons of InP crystals, the raw material for substrates.

Both Yunnan Germanium and Guangdong Xiandao are negotiating with Chinese officials for export approvals, but their international shipments, if authorized, will likely remain limited, according to a source at a major Chinese InP manufacturer.

The source indicated his company was concentrating on domestic markets in the near term, as there was no indication the Chinese government would favor domestic companies over firms like AXT seeking to export InP substrates from China.

Additionally, companies such as Coherent, primarily supplied by AXT, and Lumentum, mainly supplied by Sumitomo and JX Advanced Metals, are unlikely to change suppliers easily, as transitioning to new suppliers requires extensive qualification processes, the person explained.

Neither Yunnan Germanium nor Guangdong Xiandao responded to requests for comment.

Shareholders at Target Corporation voted down a proposal Wednesday that would have split the company’s board chair and executive leadership positions, according to two individuals with direct knowledge of the voting results.

The outcome enables former CEO Brian Cornell to continue in his role as executive chair, even as investors have increasingly called for more independent oversight.

During Target’s annual shareholder meeting, investors also rejected a proposal that would have required the company to publish reports about pesticides used in its private-label products and efforts to minimize microfiber emissions from merchandise, sources confirmed.

Although specific vote tallies have not yet been disclosed, all nominated directors successfully won election to the board, the sources added.

Target representatives declined to provide comment on the voting outcomes.

The retail giant has faced challenges keeping up with competitors like Walmart and Costco as budget-conscious shoppers increasingly seek lower prices amid ongoing inflation concerns, putting pressure on both sales figures and profit margins.

The company’s market value has dropped by approximately 50% since 2021, sparking questions about its strategic direction and operational performance.

While recent financial reports have indicated some improvement, Target has warned that challenging economic conditions may continue to impact consumer demand.

Governance questions became more prominent after Target moved longtime CEO Brian Cornell into the executive chairman role, which provides operational oversight of his replacement Michael Fiddelke.

During Cornell’s tenure as CEO, Target faced various merchandising challenges and made decisions including stepping back from diversity, equity and inclusion programs, moves that negatively affected sales and customer relationships.

Fiddelke, who assumed the CEO position in February, is allocating $2 billion this year toward maintaining adequate inventory levels and adjusting pricing strategies to better compete with aggressive discounting from Walmart, Amazon and discount retail chains.

Technology stocks took another beating on Wednesday, sending U.S. and international markets tumbling as investor enthusiasm for artificial intelligence companies continues to wane. Market volatility increased further when oil prices surged following U.S. President Donald Trump’s threat to strike Iran “very hard.”

The artificial intelligence investment boom that has driven much of this year’s market gains is showing clear signs of fatigue, creating an ironic backdrop as the world’s largest initial public offering prepares to debut. Technology and AI-focused companies are facing mounting pressure, dragging broader market indexes down alongside them.

The semiconductor index known as “SOX” has dropped 13% over the past week, while the Nasdaq has declined on five of the last six trading sessions – marking its worst streak this year. Both the Nasdaq and the S&P 500 technology index closed at their lowest levels in more than a month.

On the inflation front, annual U.S. consumer price increases have climbed above 4%, more than doubling the Federal Reserve’s 2% target. This trend is expected to continue in coming months, creating additional financial strain for consumers and households as November midterm elections approach.

However, some positive signals emerged from the data. Monthly core inflation decelerated to 0.2% from 0.4%, falling short of the expected 0.3%. Core goods inflation turned negative for the first time this year, indicating that tariff effects may be diminishing, while oil price impacts on core inflation remain contained.

In Japan, Bank of Japan Governor Kazuo Ueda was admitted to a hospital Wednesday and will be absent from next week’s policy meeting. This marks the first time a central bank governor will miss a scheduled policy session since the current decision-making structure was established in 1998.

The central bank is anticipated to increase rates by 25 basis points to 1.00%, reaching a three-decade peak. From a currency standpoint, a firm commitment to additional monetary tightening might be necessary to prevent the yen from falling to multi-decade lows, but Ueda’s absence complicates this messaging.

Wednesday’s Market Performance:

• EQUITIES: South Korea fell 5%, while China and Japan dropped 2%. The three major U.S. indexes declined nearly 2%.

• SECTORS: Eight S&P 500 sectors declined, three advanced. Technology fell 2.3%, industrials dropped 3.4%, while consumer staples gained 1.7%. Super Micro Computer plunged 28%, Nvidia decreased 3.8%, and the chip index lost 3.6%.

• CURRENCIES: The dollar-yen pair rose to 160.50, reaching its highest level since April 30 when Japan last intervened.

• FIXED INCOME: U.S. bond yields increased modestly. The 10-year Treasury auction attracted robust demand, particularly from indirect bidders representing foreign central banks.

• COMMODITIES: Oil prices rebounded 2%, while gold fell 4%.

Thursday’s Market Catalysts:

• Middle East developments

• Turkey’s interest rate decision

• European Central Bank rate announcement

• U.S. weekly unemployment claims

• U.S. producer price inflation data for May

• $22 billion U.S. Treasury 30-year bond auction

Health insurance company Humana announced Wednesday that it has reached an agreement to divest nearly its entire ownership position in Gentiva, a hospice and palliative care provider, in a transaction valued at approximately $900 million.

The healthcare giant will transfer its ownership to an investor group, though additional financial details of the arrangement were not revealed.

Humana intends to allocate the sale proceeds toward general corporate operations and indicated the transaction will not impact its projected 2026 financial performance.

The deal is anticipated to finalize during the third quarter of 2026, pending regulatory clearance and standard closing requirements.

Gentiva operates hospice care services and provides support for critically ill patients across more than 430 facilities spanning 35 states.

Humana’s ownership in Gentiva originated from its 2021 acquisition of Kindred at Home, following which the company announced plans to divest non-essential hospice and personal care operations.

In 2022, Humana previously sold a controlling interest in Kindred at Home’s hospice and personal care divisions to private equity firm Clayton, Dubilier & Rice.

Wall Street experienced a sharp decline Wednesday as artificial intelligence stocks continued their recent tumble, erasing gains from the past five weeks. The S&P 500 fell 1.6%, marking its first consecutive days of losses in three weeks and returning to early May levels. The Dow Jones Industrial Average plummeted 953 points, while the Nasdaq composite suffered the steepest decline at 2%. Markets have remained volatile since AI stocks shifted from record-breaking highs to sudden downturns last week. Concerns are mounting that these stock prices climbed too rapidly. Energy prices increased following President Donald Trump’s threats of additional strikes against Iran.

AI company Anthropic announced a $200 million commitment to study artificial intelligence’s economic effects, as its chief executive outlined potential solutions for job displacement. CEO Dario Amodei released an essay Wednesday proposing government assistance for individuals financially impacted by AI technology. He cautioned that AI might trigger substantial and prolonged workforce disruptions. Amodei recommended data gathering, employment-focused policies, and potentially universal basic income. The company plans to support research initiatives and fellowship programs to broaden AI’s benefits. This move follows comparable commitments from OpenAI and conversations with political figures regarding public compensation programs.

Increased gasoline costs drove inflation to a three-year peak last month, creating complications for the Federal Reserve and potential political difficulties for the Trump administration ahead of upcoming midterm elections. Wednesday’s data revealed consumer prices climbed 4.2% in May compared to the previous year, representing the third consecutive monthly rise. Price increases have outpaced wage growth for multiple months. Households are using savings to maintain spending levels, while more consumers are struggling with credit card payments. Major retail chains report observing shifts in customer habits, including purchasing smaller quantities of gasoline during station visits.

Space Exploration Technologies Corp., commonly known as SpaceX, plans to target individual retail investors for its upcoming stock market debut, which could become the largest initial public offering in history. Elon Musk’s aerospace company is directing portions of its stock offering toward everyday investors who trade through mobile brokerage accounts, rather than focusing solely on large institutional investors like pension funds that use professional trading desks. However, potential buyers should carefully consider the associated risks before making investment decisions.

A comprehensive guide explaining initial public offering terminology has been provided to help investors understand the various steps and elements involved in SpaceX’s planned public stock sale.

Brazil’s soccer enthusiasts will need to rely on a digital influencer’s streaming service to watch all 104 World Cup matches, as FIFA embraces new ways to attract younger audiences. Traditional broadcast exclusivity is being replaced by digital platforms and streaming services. YouTube and TikTok users will have access to live match segments for the first time. This shift represents FIFA’s strategy to engage the next generation of soccer fans through increased digital access to the sport’s premier tournament.

President Donald Trump offered an unexpected response to new inflation data showing the highest rate in three years, telling Oval Office reporters Wednesday that “I love the inflation.” With November midterm elections approaching, voters have identified the economy as a primary concern and given Trump poor ratings on economic issues. The situation has worsened as the Iran conflict has elevated oil prices. Democrats immediately shared Trump’s televised remarks across social media platforms. During Capitol Hill proceedings, Representative Emilia Sykes, a Democrat from Ohio, questioned Energy Secretary Chris Wright about whether he also supported inflation. Wright expressed preference for lower inflation while commending Trump’s efforts to limit Iran’s nuclear program.

Visa has integrated its payment system with ChatGPT, enabling the AI chatbot to conduct shopping and complete purchases on behalf of users. This partnership allows ChatGPT to buy items from any Visa-accepting merchant, expanding beyond previous arrangements limited to specific retailers. OpenAI will supply the decision-making and purchasing technology, while Visa will ensure transaction security. The companies have not revealed financial arrangements or fee structures. Potential issues include excessive spending and unauthorized transactions, though Visa intends to establish protective measures such as spending caps. This development could affect businesses by allowing AI agents to handle procurement and billing processes. Mastercard is similarly working on AI-powered shopping capabilities.

Hollywood directors have secured a tentative four-year contract with studios and streaming platforms following negotiations. The Directors Guild of America and the Alliance of Motion Picture and Television Producers reached the agreement Tuesday after four weeks of discussions. This marks the first negotiation led by new DGA President Christopher Nolan. Similar four-year contracts have recently been approved by unions representing writers and actors. The agreement increases prospects for extended labor stability in Hollywood despite industry changes. The contract requires approval from the guild’s national board and membership ratification.

Court administrators overseeing the NFL’s billion-dollar-plus concussion settlement have prohibited five law firms from processing additional claims after discovering fraudulent practices. The firms allegedly directed clients to doctors who would provide Parkinson’s disease diagnoses regardless of whether patients showed symptoms. A federal court report filed in Philadelphia this week indicates the five firms represented or worked with 98 former players seeking Parkinson’s disease payments from the settlement in recent years. Dozens of these claims received approval totaling $95 million, with attorneys collecting approximately $20 million in fees.

Major U.S. stock markets closed Wednesday with losses exceeding 1%, driven down by continued weakness in semiconductor stocks and growing concerns over escalating tensions with Iran.

President Donald Trump warned that the U.S. would launch another attack on Iran if no peace agreement is reached. This statement came after one of the most serious exchanges of hostilities in the Middle East conflict over the past two months.

Semiconductor stocks took a particularly hard hit, with their sector index dropping 3.6%. Companies like Nvidia and Broadcom were among the heaviest weights dragging down the S&P 500, as investors continue to worry about inflated valuations in the chip sector.

The technology sector of the S&P 500 has now fallen 11% from its record closing high on June 2, officially entering correction territory.

Wall Street’s fear gauge, the Cboe Volatility Index, continued its recent upward trend.

Tom Hainlin, an investment strategist at U.S. Bank Wealth Management in Minneapolis, noted that investors continue to take profits from technology investments.

He explained that market participants are now “pricing in maybe a higher interest rate” following recent economic reports and are also concerned about the ongoing conflict.

“Perhaps that conflict continues on into the mid to late summer,” he stated.

The market decline was worsened by drops in trucking company shares, including XPO, J.B. Hunt and Old Dominion, after Amazon revealed plans to expand its less-than-truckload freight operations across the U.S. The industrial sector led all declining sectors with a 3.4% drop.

The Dow Jones Industrial Average dropped 953.33 points, or 1.87%, closing at 49,918.78. The S&P 500 decreased 119.66 points, or 1.62%, to finish at 7,266.99. The Nasdaq Composite fell 509.32 points, or 1.98%, ending at 25,169.50.

The Federal Reserve is anticipated to keep interest rates unchanged at its June policy meeting. However, investors are factoring in at least one quarter-point rate increase before the year ends.

Last Friday’s employment report exceeded expectations. Wednesday brought news that U.S. consumer prices rose 4.2% over the 12 months ending in May, marking the biggest increase since April 2023. The Middle East conflict has pushed up gasoline and other energy costs.

The inflation rate matched economist predictions in a recent poll.

Oracle stock declined approximately 1% in after-hours trading following its earnings announcement.

During regular trading, Super Micro Computer plummeted 28% after revealing plans to raise $7 billion through various equity and equity-related financing deals to fund component purchases for its expanding AI server business.

The shift away from high-performing technology stocks has benefited other market sectors that have underperformed this year, including healthcare, real estate and consumer staples.

The highly anticipated $1.75 trillion SpaceX public offering scheduled for Friday, aiming for a record $75 billion fundraising goal, could add additional pressure to U.S. markets as worries grow about excessive enthusiasm in the technology sector.

On the New York Stock Exchange, declining stocks outnumbered advancing ones by a ratio of 1.87-to-1. The exchange saw 179 new highs and 138 new lows.

On the Nasdaq, 1,772 stocks gained while 3,129 declined, with falling issues outnumbering rising ones by 1.77-to-1. The S&P 500 recorded 22 new 52-week highs and 8 new lows, while the Nasdaq Composite saw 139 new highs and 141 new lows.

Trading volume on U.S. exchanges reached 20.7 billion shares, slightly above the 20.6 billion average over the previous 20 trading sessions.

Wall Street experienced steep declines Wednesday as artificial intelligence stocks continued their recent retreat, pulling major market indexes significantly lower.

The S&P 500 index declined 1.6% on Wednesday following a brief morning uptick. This marked the first consecutive daily losses for the benchmark index in three weeks. Meanwhile, the Dow Jones Industrial Average tumbled 1.9%, while the Nasdaq composite dropped 2%.

Market volatility has persisted since the previous week when AI-related stocks shifted from hitting record highs to experiencing sudden reversals. Investors are increasingly concerned that valuations in this sector may have climbed too rapidly. Additionally, oil markets gained ground after President Donald Trump issued threats of additional military action against Iran.

Wednesday’s closing numbers:

The S&P 500 declined 119.66 points, finishing at 7,266.99, representing a 1.6% decrease.

The Dow Jones Industrial Average dropped 953.33 points to close at 49,918.78, marking a 1.9% decline.

The Nasdaq composite decreased 509.32 points to end at 25,169.50, down 2%.

The Russell 2000 index tracking smaller companies fell 31.56 points to 2,835.46, a 1.1% drop.

Weekly performance:

The S&P 500 has declined 116.75 points, down 1.6% for the week.

The Dow has fallen 948 points, representing a 1.9% weekly decrease.

The Nasdaq has dropped 539.93 points, down 2.1% for the week.

The Russell 2000 has gained 1.96 points, up 0.1% for the week.

Year-to-date performance:

The S&P 500 remains up 421.49 points, showing a 6.2% annual gain.

The Dow has risen 1,855.49 points, reflecting a 3.9% yearly increase.

The Nasdaq has climbed 1,927.51 points, up 8.3% for the year.

The Russell 2000 has advanced 353.56 points, posting a 14.2% annual gain.

The newly appointed leader of CBS’s “60 Minutes” has brought in outside help to manage his entry into a newsroom experiencing significant upheaval, according to internal sources.

Nick Bilton attended his inaugural staff meeting last week alongside Kelly Funke, a television production consultant he enlisted to assist with his newsroom transition, three “60 Minutes” employees revealed on condition of anonymity due to job security concerns.

Staff members characterized Funke’s mission as rebuilding trust within the team, with one describing her function as Bilton’s “chief of staff.” The consultant, who brings more than ten years of television production experience, has not been publicly acknowledged in this role before. She is reportedly working under a 90-day agreement with possible extension.

Bilton’s appointment reflects wider changes at CBS News that started when David Ellison — son of Larry Ellison, a longtime supporter of President Donald Trump — took control of Paramount in August. He placed Bari Weiss, founder of a successful media startup without broadcast journalism background, in charge of CBS News. David Ellison may soon oversee CNN as well, pending regulatory approval of his bid for Warner Bros Discovery.

Representatives for Bilton, Weiss, Funke and CBS News all refused to provide statements.

The decision to engage Funke indicates Bilton expected challenges in leading a newsroom that has struggled under Weiss’s direction.

“I just think Nick vastly underestimated just how bad it was,” one staff member commented.

Conflict erupted during the June 1 gathering when correspondent Scott Pelley challenged Bilton directly. “I find it impossible to imagine that you would take this job knowing that you would never be welcome here,” Pelley stated, according to a meeting attendee.

CBS terminated Pelley following the staff meeting where he also criticized leadership and accused Weiss of “murdering” the program.

Funke has organized meetings between Bilton and “60 Minutes” staff while working with assistants and producers to understand the newsroom’s organization, sources indicated.

Some employees have raised concerns about Funke’s qualifications, pointing to her absence of journalism background, though one current staffer noted her efforts to understand the newsroom environment.

Bilton has also hired Nick De Lucca, 24, who has introduced himself to staff as “Nick 2.0,” according to a fourth source. De Lucca received the title “operations manager,” a substantial position typically handling logistics. His LinkedIn profile shows he has served as an associate producer at Bilton’s production company since 2024.

De Lucca did not respond to comment requests.

Funke is accompanying Bilton — a former Vanity Fair contributor and documentary filmmaker who represents the first outsider from traditional television news to head “60 Minutes” — during a turbulent period for the show’s team. On May 28, CBS removed executive producer Tanya Simon, longtime producer Draggan Mihailovich, and correspondent Cecilia Vega. The previous day, the network chose not to renew correspondent Sharyn Alfonsi’s contract following her dispute with Weiss over a December report about a Salvadoran prison.

Network executives offered no explanation for the dismissals. A CBS spokesperson stated the network cannot discuss personnel issues for legal and other considerations. “60 Minutes” concluded last season as the highest-rated news program, increasing its television viewership by 9% compared to the previous year, Nielsen data shows.

Bilton informed employees he made “repeated attempts” to engage in direct discussions with Pelley before his termination and to “find common ground,” but Pelley declined, according to an email obtained by Reuters.

Speaking with The New York Times after his exit, Pelley claimed Weiss was placing a “thumb on the scale” favoring Republican President Donald Trump’s interpretation of news events. He alleged Weiss attempted to modify his reporting on ICE’s activities in Minnesota and sought to portray protesters as more violent.

The CBS spokesperson responded that Weiss’ input on the piece Pelley mentioned to the Times “had no political motivation” and was “proposed solely to make the piece as strong, fair, and accurate as possible.”

In a staff email, Bilton emphasized the show’s “journalistic independence” — a message Ellison also delivered during a private conversation with correspondent Lesley Stahl, the Times reported. This personal discussion highlights “60 Minutes’” significance in Ellison’s plans for Paramount and the management difficulties facing the network.

Stahl shared details about the call with staff during a Monday social gathering aimed at improving morale, one current employee told Reuters. The source said reactions to Ellison’s promises were mixed, with several people noting that Ellison had visited “60 Minutes” after acquiring Paramount and had previously made identical commitments.

Before Skydance Media’s acquisition, Paramount paid $16 million to resolve a 2024 lawsuit Trump brought against “60 Minutes” regarding an interview with former Vice President Kamala Harris, which he claimed presented a distorted perspective of his White House opponent.

The FCC has stated the settlement and the deal’s regulatory review were separate matters.

Major U.S. stock markets experienced significant losses Wednesday afternoon, with all three primary indexes dropping more than 1% as technology stocks continued their downward trend and escalating Middle East tensions heightened investor concerns.

President Donald Trump stated the U.S. would strike Iran again “very hard” after one of the most substantial overnight exchanges of gunfire since an April ceasefire in the Middle East conflict.

Semiconductor stocks were particularly battered, with their index declining 2.6%. Companies like Nvidia and Broadcom were among the heaviest weights pulling down the S&P 500, while the technology sector index for the S&P 500 dropped 1.1%. Market participants have grown increasingly concerned about inflated stock prices in the technology space.

Market volatility continued building on Tuesday’s gains, with the Cboe Volatility Index showing increased uncertainty in recent trading sessions.

Tom Hainlin, an investment strategist at U.S. Bank Wealth Management in Minneapolis, noted that investors continue taking profits from technology investments.

Additionally, market participants are now “pricing in maybe a higher interest rate” following recent economic reports while also expressing concern about the ongoing conflict, he explained.

“Perhaps that conflict continues on into the mid to late summer,” he stated.

The Federal Reserve is anticipated to maintain current interest rates at its June policy meeting. Market participants are factoring in at least one 25-basis-point rate increase before year-end.

The Dow Jones Industrial Average dropped 721.32 points, or 1.42%, closing at 50,150.79. The S&P 500 declined 87.78 points, or 1.19%, finishing at 7,298.87. The Nasdaq Composite fell 382.36 points, or 1.49%, ending at 25,296.35.

Friday’s employment report exceeded expectations. Wednesday’s data revealed U.S. consumer prices rose 4.2% over the 12 months ending in May, marking the steepest increase since April 2023, as Middle East hostilities drove up gasoline and energy costs.

However, this inflation rate matched economist predictions according to a Reuters survey.

Super Micro Computer shares plummeted 20.9% after revealing plans to generate $7 billion through various equity and equity-related financing deals to purchase components for expanding AI server demand.

The shift away from heavily favored technology stocks has benefited other market sectors that have underperformed this year, including healthcare, real estate and consumer staples.

The highly anticipated $1.75 trillion SpaceX public offering scheduled for Friday, seeking a record $75 billion in funding, could further pressure U.S. markets as worries grow about excessive technology sector enthusiasm.

Transportation company stocks including XPO, J.B. Hunt and Old Dominion also declined after Amazon revealed plans to expand its less-than-truckload shipping services across the U.S. Industrial stocks led sector declines.

Falling stocks outnumbered rising ones by a 1.41-to-1 margin on the NYSE. The exchange recorded 168 new highs and 103 new lows. On the Nasdaq, 2,038 stocks gained while 2,729 declined, with falling issues leading advancing ones by a 1.34-to-1 ratio.

General Motors is reconsidering its strategy to incorporate a cost-effective, iron-based battery technology that numerous car manufacturers have adopted to make electric vehicles more affordable, according to the company’s battery technology leader.

The Detroit-based manufacturer had previously announced intentions to create lithium-iron phosphate, known as LFP, batteries for upcoming electric vehicle models, with production scheduled to begin in late 2027 at a facility jointly operated in Tennessee.

However, GM’s battery chief Kurt Kelty informed Reuters that the company is now concentrating on advancing an alternative battery chemistry called lithium manganese-rich, or LMR. This technology reportedly costs approximately the same as LFP to produce domestically while offering superior energy storage capacity within identical weight and size parameters.

Kelty indicated that GM might abandon LFP technology for electric vehicle applications entirely. He noted that while the Tennessee facility will commence LFP cell production this month, those batteries are designated for energy storage systems rather than vehicles.

“There is a possibility where LFP does not earn its way into our portfolio,” Kelty stated after a GM event in San Francisco on Tuesday, describing LMR as the “workhorse” for the company. “That’s where we’re going to be using the big volume,” he added.

General Motors has invested over ten years developing LMR technology. Ford Motor, GM’s crosstown competitor, announced last year that it was working to scale LMR chemistry for future electric vehicles.

Despite LMR’s benefits, including reduced dependence on critical minerals, technical obstacles such as battery degradation during use mean widespread implementation isn’t anticipated in the near future, according to S&P Global’s assessment last year.

Avoiding LFP technology would represent a notable shift from the battery approaches employed by many of GM’s rivals.

Chinese automotive manufacturers led the adoption of the more affordable LFP chemistry, which offers lower energy density—resulting in reduced driving ranges—but provides cost savings and is considered safer and more long-lasting than the nickel-rich batteries favored by many American and European car makers.

Numerous international automakers, including Tesla, Rivian and Ford Motor, have incorporated LFP-based electric vehicles to reduce expenses and provide more budget-friendly electric alternatives as consumer interest in battery-powered vehicles has declined in the United States.

GM has launched more than twelve electric vehicles in the U.S. market over recent years, all utilizing more potent nickel-rich chemistry. However, its recently introduced Chevrolet Bolt, which serves as its most affordable electric vehicle for American consumers, employs LFP cells manufactured by Chinese battery company CATL, as reported by Reuters and other news organizations.

Last year, GM announced its objective to begin commercial LMR cell production at a domestic facility in 2028. While Kelty didn’t verify whether this timeline remains unchanged, he confirmed that LMR development “is on schedule.”

Federal prosecutors have sent legal demands to several major financial institutions as part of an investigation into whether banks inappropriately terminated customer accounts based on political motivations, according to a Wall Street Journal report published Wednesday.

The legal requests for information, with some issued as far back as last year, originated from the U.S. Attorney’s Office in Washington, D.C., under the leadership of Jeanine Pirro.

The subpoenas asked financial institutions to supply lists of customers who were allegedly “debanked,” as well as documentation explaining the reasoning behind account terminations, according to the report.

The investigation includes JPMorgan Chase and Bank of America, while Pirro’s office is also pursuing information from Wells Fargo, the report stated, referencing sources with knowledge of the matter.

When contacted for comment, JPMorgan Chase did not provide an immediate response to Reuters. Both Bank of America and Wells Fargo chose not to comment on the matter.

These subpoenas represent an escalation of President Donald Trump’s efforts to scrutinize major banks and their oversight agencies. In the previous year, he issued an executive order mandating that the banking sector verify it was not refusing financial services to certain controversial industries through what is commonly called “debanking.”

A previous examination by the Office of the Comptroller of the Currency revealed that the nation’s nine largest banking institutions had historically implemented limitations on financial service provision.

WASHINGTON, June 10 – The technology company Oracle has been selected to deliver a human resources platform for federal agencies throughout the United States government, federal officials announced.

The company will supply a cloud-based human resources system designed to replace the separate systems currently operated by individual agencies, according to Office of Personnel Management Director Scott Kupor. The Office of Personnel Management serves as the federal government’s human resources department.

Oracle has not yet provided a response to media inquiries regarding the contract.

A Houston-based manufacturer of gas generators experienced a disappointing first day on Wall Street Wednesday as ERock’s stock price dropped 6.5% during its New York Stock Exchange debut.

The Texas company’s shares began trading at $20.10 each, falling short of the $21.50 offering price and giving the business a total valuation of $5.49 billion when fully diluted shares are included.

ERock successfully completed its initial public offering Tuesday, bringing in $600 million from investors.

The company’s market entrance occurs during a period of renewed activity in the U.S. IPO market following previous challenges from market instability and global political tensions.

While investors have shown strong enthusiasm for businesses positioned to capitalize on increasing energy needs from data centers and artificial intelligence infrastructure, ERock’s performance stood in contrast to the positive market response received by competitor Innio during its Nasdaq launch the previous week.

According to IPO documentation, the company’s contracted power system sales backlog experienced dramatic growth, jumping nearly nine times compared to the previous year to reach $1.28 billion as of March 31.

Chief Executive Officer John Carrington informed Reuters that approximately $1.1 billion of this backlog stems from AI data center projects, demonstrating the company’s increasing involvement in this expanding sector.

“We decided that it was the right time (to go public) because our projects were getting bigger and bigger,” Carrington said.

The filing also reveals that ERock is collaborating with El Paso Electric to supply 366 megawatts of onsite power generation for Meta’s $10 billion AI data center project in El Paso.

Carrington explained that updating a large language model at a data center can create substantial increases in power requirements, and ERock’s systems are designed to quickly adapt to these fluctuations while keeping power output consistent.

Financial services company Visa announced Wednesday it has integrated its payment system with ChatGPT, enabling the artificial intelligence platform to shop for items and process payments for users automatically.

This development allows AI assistants to not just suggest products but actually complete purchases for customers at any business that accepts Visa cards. Earlier technological efforts by the payment network were restricted to individual retailers or small groups of participating stores.

This marks another venture into online shopping for OpenAI. The company previously launched Instant Checkout last year, which enabled ChatGPT to search the web for specific products like a virtual shopping assistant. However, that service experienced frequent mistakes and failed to gain traction among retailers because of OpenAI’s merchant fees. The company discontinued Instant Checkout in March.

The new Visa partnership differs from OpenAI’s earlier shopping initiatives, as it will enable customers to connect their Visa payment cards directly to ChatGPT for purchases and streamline transaction processing for businesses.

OpenAI will supply the technology enabling AI assistants to communicate, make choices and complete purchases through ChatGPT. Visa, which operates the largest payment network globally outside China, will handle payment processing and fraud detection required for widespread implementation.

“As AI agents become active participants in the economy, Visa’s focus is to ensure transactions are trusted, secure and seamless,” said Jack Forestell, chief product and strategy officer at Visa.

During a company presentation Wednesday in San Francisco, Forestell demonstrated how a user might ask ChatGPT to find wireless headphones priced below $150. The AI would locate suitable options meeting those criteria and purchase them for the customer.

Neither Visa nor OpenAI revealed the financial details of their partnership or specified what fees businesses or consumers would face.

The previous Instant Checkout service required merchants to pay 4% of each transaction’s total, which businesses considered excessive.

Enabling AI systems to make purchases for consumers creates potential issues for financial institutions and retailers. Users might exceed their budgets, the AI could select incorrect items, or customers might dispute transactions they claim they never authorized. Banks have expressed concerns about possible fraud complaints when AI agents use customers’ credit or debit cards.

Visa states the new feature will include protective measures such as spending caps, mandatory approval processes and pre-approved merchant lists to safeguard consumers and reduce fraudulent activity.

Retailers have deployed AI-powered shopping assistants that can suggest products and customize the shopping experience, with Amazon’s Alexa being among the earliest examples. However, Alexa was limited to Amazon purchases only, and OpenAI’s Instant Checkout worked with just selected retailers.

Mastercard, Visa’s primary rival, has also been developing AI shopping capabilities for its payment network on a more limited basis.

Mastercard revealed that AI agents will be able to purchase services for businesses. For instance, a coffee shop planning to launch an advertising campaign could authorize an AI agent to buy services from web and advertising companies to develop the promotional effort.

The federal government’s budget shortfall for May decreased by $23 billion, dropping 7% to $293 billion, primarily because of timing differences in benefit payment schedules compared to the previous year, according to Wednesday’s announcement from the Treasury Department. Both government spending and revenue declined during the month, with income taking a substantial blow from tariff refund payments related to President Donald Trump’s emergency trade duties.

Treasury officials reported that tariff refund payments reached $21.97 billion in May, while incoming customs revenue totaled $21.93 billion, resulting in a net outflow of $42 million from customs operations during the month.

The refund process began after the U.S. Customs and Border Protection agency started returning approximately $166 billion in trade duties that were collected under the International Emergency Economic Powers Act, which the U.S. Supreme Court ruled unconstitutional in February. Before these refunds began, customs revenue had represented a major income stream for the Treasury, with monthly collections reaching the low $30 billion range in late 2025.

Government revenue for May dropped $36 billion, a 10% decrease to $336 billion when compared to May 2025, while government expenditures fell $59 billion, representing a 9% decline to $628 billion.

However, when accounting for payment timing adjustments that moved some June 2025 disbursements into May of that year, Treasury officials noted that the adjusted May budget shortfall of $293 billion actually represents a $71 billion or 32% increase from the previous year.

For the initial eight months of fiscal year 2026, which began October 1, the cumulative budget deficit reached $1.246 trillion, representing a $118 billion or 9% decrease on an unadjusted basis.

BRUSSELS, June 10 (Reuters) — Belgium has given Tesla permission to deploy its Full Self-Driving supervised driver assistance technology, according to an announcement made Wednesday by Annick De Ridder, the transport minister of Flanders region.

“I just signed the approval,” De Ridder stated in a social media post on X, which included a photograph of the official signed authorization document.

The authorization comes after Tesla completed a successful testing program within the country, according to the minister. Under Belgian law, permits issued by any of the nation’s three regions apply across the entire country.

This makes Belgium the third nation within the European Union to grant such authorization, joining the Netherlands and Lithuania in approving the technology.

The chief executive of alternative asset manager Ares disclosed Wednesday that international investors were behind most withdrawal requests from the company’s private credit fund designed for wealthy clients.

Speaking at the Morgan Stanley U.S. Financials conference in New York, Michael Arougheti revealed specific details about the redemption activity.

“We had 11% redemption requests. It was from less than 5% of our investors. It was largely concentrated in small institutions and family offices, not in the U.S.,” Arougheti stated during his presentation.

The alternative asset manager had earlier described these withdrawal requests as originating from “select geographies” without providing additional specifics.

The disclosure comes as affluent investors withdrew more capital than they invested in private credit funds managed by various asset managers during the early months of this year. Market concerns centered on issues including transparency, lending practices, and questions about how technology firms that borrowed significantly from direct lenders would handle challenges posed by artificial intelligence developments.

Despite the withdrawal activity, Arougheti expressed optimism about the sector’s future prospects.

Arougheti indicated this situation provided him with “confidence that the markets will grow through this.”

A major semiconductor equipment manufacturer has announced plans to reduce the scope of previously announced job eliminations following negotiations with labor organizations in the Netherlands, according to union representatives.

The layoffs at ASML are now scheduled to commence in May 2027, according to company spokesperson Monique Mols. She indicated that workers will receive notification about their employment status before the conclusion of this month. Mols noted that rather than termination, some employees may find their positions restructured within the organization.

“We want to see as few people as possible forced to leave,” Mols stated.

A major Japanese securities company has announced ambitious plans to dramatically expand its retail wealth management business over the coming years.

Mitsubishi UFJ Morgan Stanley Securities revealed its goal to boost assets under management for individual clients by 10 trillion yen, equivalent to approximately $62 billion, according to company president Hiroyuki Seki in a recent interview with Reuters.

The financial services firm, which operates as a partnership between Japan’s biggest banking organization Mitsubishi UFJ Financial Group and Morgan Stanley, also intends to add several hundred employees to its sales team, Seki explained.

This aggressive expansion strategy comes as Japan’s wealth management industry anticipates significant growth driven by the country’s emergence from deflation and increasing interest rates, which are motivating savers to move their money from cash deposits into investments offering better returns.

Revenue generated from overseeing these investment portfolios has contributed to improved earnings throughout Japan’s financial services industry.

Company records show that as of March’s conclusion, MUMSS managed total assets worth 55.9 trillion yen.

The organization intends to strengthen relationships with workers and leadership at current business clients while expanding its service offerings, including providing loans secured by a broader variety of client holdings, according to Seki.

At present, the firm offers financing arrangements backed by stock investments.

With summer officially here and school letting out, families are looking for exciting vacation destinations to create lasting memories. Dollywood theme park in Pigeon Forge, Tennessee offers thrills and entertainment for visitors of all ages.

Members of Virginia Farm Bureau can access special savings of $10 off both adult and child admission passes to the popular theme park by signing into their vafb.com member portal. The attraction features exciting rides, roller coasters, live shows, and authentic Southern cuisine options.

Those seeking relief from hot summer temperatures can also take advantage of discounted rates at Dollywood’s Splash Country water park. VFB members receive savings of up to $5 on admission tickets through their online member account at vafb.com. The water park offers lazy river floating, high-speed slides, and poolside relaxation areas. Operations continue through Labor Day weekend, providing cooling entertainment throughout the summer season.

Additional details about the discount program are available through the Virginia Farm Bureau website.

A judge in California has rejected requests from Meta Platforms and Google’s YouTube for new trials following a jury decision that found the tech giants liable for creating social media platforms that cause harm to young users, according to sources with knowledge of the court decision.

Los Angeles Superior Court Judge Carolyn Kuhl made her decision on Tuesday regarding the companies’ requests, as shown in court filings. However, the written order detailing her decision and the reasoning behind it was not yet publicly available.

Both tech companies had requested new trials following a jury’s determination that they acted negligently, resulting in $6 million in awarded damages.

Financial markets across the globe are experiencing dramatic swings as investors navigate between two powerful forces: the promise of artificial intelligence growth and concerns about oil supply disruptions from ongoing U.S.-Iran tensions.

Recent market activity demonstrates just how precarious the economic situation has become. International stock markets reached record highs on June 3, only to experience their steepest decline since October just two days afterward. Since then, trading has been marked by constant reversals tied to the U.S. President Donald Trump’s changing statements regarding Iran and speculation about when the Strait of Hormuz shipping lane might reopen.

“Most investors have been running with the assumption that within less than three months we reach a reopening of the strait,” said Florian Ielpo, head of macro and multi-asset portfolio manager at Lombard Odier Investment Managers.

“If we move to expecting oil prices of $95 or more for many more months, that would be a complete change of view and a stagflation outlook,” he continued. “The market is walking a narrow line.”

The interconnected nature of today’s markets means that seemingly unrelated investments are moving together. Artificial intelligence enthusiasm has boosted Wall Street performance and American household wealth, improved official economic projections for coming years, sparked rapid expansion among Asian export companies, and lifted confidence in various assets from international banking stocks to Greek government debt.

Taiwan anticipates its strongest economic performance in 16 years for 2026, driven by exceptional semiconductor sales, while worldwide technology investment has caused import and export activity to surge in China, the planet’s largest commodity consumer.

This dynamic explains why Britain’s FTSE 100 index, heavily weighted with energy and mining companies, has abandoned its typical pattern of moving opposite to technology growth stocks and instead begun climbing alongside them.

However, these technology-influenced connections will make it much more difficult to find safe investments if concerns about inflation and interest rate increases begin to harm AI spending and drive global markets downward, investment professionals warn.

When markets shifted to pricing a 70% probability of a U.S. rate increase on Friday, South Korea’s currency fell to 17-year lows and the country’s technology-focused Kospi stock index plummeted nearly 9% within hours.

Alessia Berardi, global head of macro-economics and emerging markets at Amundi’s research division, said she continues to favor stock investments and believes markets are not anticipating a prolonged Hormuz closure.

“But a repricing of (interest rate) policy along with higher oil prices and shortages will mean stagflationary risks, and some countries are already getting into a recessionary outlook,” she warned.

Energy supply concerns are already impacting economies not closely tied to technology sectors, such as Germany and India.

Professional investment managers have grown accustomed to brief geopolitical disruptions causing rapid market sentiment changes since Trump’s tariff actions in April 2025 initially hurt U.S. stocks before individual investors drove a remarkable recovery.

“If you think that the Strait stays closed for a long period of time and that we will get demand destruction and inflation, that’s the time for stagflation positioning in your portfolio,” said Ben Jones, global head of research at Invesco.

“History has taught us that these geopolitical risks shall pass and when they do, you tend to get markets rallying very quickly,” he noted.

Following Trump’s tariff announcements that sent shockwaves through international markets, Wall Street’s S&P 500 index fell sharply before mounting a swift and powerful comeback. Stock and bond values also fluctuated by amounts not seen since the COVID-19 pandemic.

Michael Nizard, head of multi-asset at Edmond de Rothschild Asset Management, reported increasing his holdings of financial instruments that benefit from stock market volatility.

Other investment managers widely indicated they are now purchasing more protective products rather than additional stocks.

Kevin Thozet, a member of Carmignac’s investment committee, said he is expanding holdings of U.S. inflation-protected bonds because market predictions for American consumer prices appear overly optimistic. He noted that data center construction will require significant capital investment and push energy costs higher.

Lombard Odier’s Ielpo explained he is protecting market positions by maintaining stock holdings while reducing government debt investments, which can serve as safe havens but also fluctuate with inflation expectations.

German government bond yields are approaching 15-year peaks as debt prices have declined during the Iran conflict, while 10-year Japanese yields are reaching three-decade highs.

A gauge of bond market volatility stands approximately 5% above its pre-war level. Stock market volatility remains near its historical average but is 35% higher compared to the start of the year.

Financial markets showed mixed reactions to the latest inflation data on June 10, with investors slightly reducing their expectations for an immediate Federal Reserve interest rate increase while maintaining confidence in action by fall.

Following a government inflation report that showed consumer prices climbed 4.2% last month, matching economist forecasts, market participants pulled back slightly from wagering on a September rate increase by the central bank. The probability for a September move now stands at approximately 45%, down from nearly 50% prior to the data release.

Despite the modest retreat in near-term expectations, financial markets continue to heavily favor the likelihood of rate action by the Federal Reserve’s October policy meeting, with traders pricing in roughly a 60% probability of an increase at that time.

BERLIN, June 10 – Robert Bosch GmbH, the globe’s largest automotive supplier, remains confident about achieving its financial objectives for this year, even as new obstacles arise, including potential supply chain disruptions from Middle East conflicts, CEO Stefan Hartung told Reuters on Wednesday.

With German automotive manufacturing experiencing a downturn and the company navigating a costly shift toward electric vehicle technology, Bosch is planning to eliminate 22,000 positions within its primary automotive division. These workforce reductions are anticipated to improve financial performance this year following restructuring expenses that impacted results in 2025.

“We’ve set the course to be well positioned for the next phase,” Hartung said at a robotics and automation event in Berlin.

The corporation maintains its projection for profit margins between 4 to 6% this year – representing a two to three-fold increase from the previous year – along with revenue expansion of 2 to 5%. This outlook surpasses the optimism shown by rivals Schaeffler and ZF.

However, market circumstances are not becoming easier, Hartung noted. “On the contrary: the environment remains challenging.”

Questions surrounding Middle East warfare and its possible effects on semiconductor raw material supplies, including helium, have increased risks for Bosch, the CEO explained.

“But fundamentally, we are well-positioned and can achieve our goals under the current conditions,” he added.

Stock market futures cut their early morning losses on Wednesday following the release of May inflation figures that reduced expectations for additional Federal Reserve interest rate increases.

According to a report from the Labor Department, the Consumer Price Index climbed 4.2% compared to the same period last year in May, matching analyst predictions.

As of 8:33 a.m. Eastern Time, Dow E-minis had dropped 305 points, representing a 0.6% decline, while S&P 500 E-minis fell 38 points or 0.51%. Nasdaq 100 E-minis decreased by 179 points, down 0.61%.

Pharmaceutical giant Pfizer is reconsidering its investment plans in Germany after the country’s government proposed new policies aimed at reducing drug costs, according to a letter from the company’s top executive.

Chief Executive Officer Albert Bourla addressed his concerns directly to Chancellor Friedrich Merz in correspondence dated June 9, which was obtained by Reuters and initially covered by German business publication Handelsblatt.

In his letter, Bourla expressed that the government’s proposed measures create uncertainty that undermines the pharmaceutical sector’s ability to make long-term financial commitments.

“As a result, we are reviewing our external engagements as well as the timing, scope, and future prioritization of certain planned investments in Germany,” the letter read.

Pfizer’s warning comes just days after other major pharmaceutical companies made similar decisions regarding their German operations. U.S. drugmaker Eli Lilly announced it would reduce its $2.3 billion German investment by half, while German pharmaceutical company Boehringer Ingelheim completely abandoned its €900 million investment plans. Both companies attributed their decisions to the government’s proposed healthcare cost-reduction initiatives.

BRUSSELS, June 10 – European Union regulators are examining Paramount Skydance Corp’s massive $110 billion acquisition of Warner Bros Discovery, which receives financial support from Gulf sovereign wealth funds, based on a European Commission document.

The American entertainment company requested EU clearance under the bloc’s Foreign Subsidies Regulation on Tuesday, a rule designed to address unfair government assistance from foreign nations.

The Commission, serving as the EU’s competition watchdog, has until July 14 to either approve the transaction or launch a comprehensive 90-working-day probe.

Financial backing for the acquisition comes from Saudi Arabia’s Public Investment Fund (PIF), Abu Dhabi-based L’imad Holding Company, and Qatar Investment Authority (QIA). The transaction is simultaneously under review through EU merger regulations.

Industry sources previously indicated to Reuters that the subsidy examination should prove less challenging than the merger review, where the entertainment companies will probably need to provide concessions like selling off a children’s channel to satisfy EU competition requirements.

A major Dutch financial institution has introduced a subscription-based banking service in the Netherlands as part of its strategy to compete with emerging digital banks and diversify revenue sources.

ING rolled out the new service model on Wednesday, with plans to implement it across all its operating markets by the middle of 2027. Global Head for Private Individuals Sali Salieski told Reuters the bank anticipates this approach will generate a “meaningful” boost to fee-based income.

According to Salieski, the initiative responds in part to increasing pressure from digital-only banking competitors. He pointed to rapidly growing Revolut, which is reportedly exploring a public stock offering that could reach a valuation of $200 billion.

The subscription approach replaces traditional per-service banking fees with monthly payment tiers that combine banking, insurance, and additional services like streaming platforms into unified packages.

ING previously tested this model in Belgium, Romania and Poland before bringing it to the Netherlands. Salieski indicated that other markets where the bank operates, including Spain, Germany and Italy, will adopt the system next.

The bank views subscriptions as a way to sustain fee revenue growth, especially from routine banking operations, Salieski explained.

Over recent years, the banking group has focused on expanding net fee and commission earnings to balance out declining benefits from the post-pandemic period of elevated interest rates.

“I think (the subscription model) will also give more breadth across all markets, because we’ve had some markets which are traditionally low fee or no fee,” Salieski said.

The bank has maintained consistent double-digit increases in fee and commission revenue over the last two years. In the first quarter, this income reached €1.24 billion ($1.43 billion), representing 21% of total company revenue.

Car enthusiasts seeking an exciting ride without the new car price tag should take advantage of current market conditions this summer. The used car marketplace now offers several high-performance vehicles for under $25,000 that were previously beyond many buyers’ financial reach when they first hit dealership lots.

Automotive experts at Edmunds analyzed the current market and selected five standout options under the $25,000 threshold. Their picks cover a wide spectrum of driving preferences, including everything from a powerful V8 coupe capable of burning rubber to a practical four-door that can haul your gear for weekend adventures.

BMW’s smallest two-door offering, the 2 Series, comes in both coupe and convertible configurations. While a four-cylinder version exists, enthusiasts should focus on the six-cylinder M235i and BMW M240i variants. These models deliver rapid acceleration, well-balanced handling characteristics, and superior comfort for long trips. Power output spans from 320 horsepower in the M235i up to 335 horsepower in the 2017-2018 M240i models. The 2 Series provides a more premium driving experience compared to other vehicles in this price range, though rear passenger space is somewhat limited for a luxury vehicle.

Look for: The M235i from earlier years is more commonly found within the $25,000 budget. Both variants come well-appointed with standard equipment, though BMW offered several option packages worth considering. Models equipped with the Technology package feature a larger center display and navigation system.

The sixth-generation Chevrolet Corvette, known as the C6, offers exceptional performance value. Its robust V8 engine generates up to 430 horsepower, keeping these Corvettes impressively quick even compared to today’s standards. The combination of rear-wheel drive, relatively light weight, strong stopping power, and comfortable highway cruising earns the C6 a spot on this list, despite its budget-oriented interior materials.

Look for: Focus on 2008 and later model years, which received additional power and interior improvements. Coupe models are more readily available under $25,000 compared to convertible versions or the later high-performance Grand Sport variants. While the V8 engine in these vehicles is reliable, locating a Corvette with documented maintenance history remains advisable.

The latest generation Mazda MX-5 Miata continues to set the standard for lightweight, enjoyable convertibles. Its 181-horsepower output may seem modest but proves sufficient to energize this featherweight two-seater. Combined with accurate steering, predictable handling dynamics, and an optional smooth-operating six-speed manual transmission, this Miata exemplifies the classic open-top sports car formula. Taller drivers should note that the cabin space will feel restrictive.

Look for: While earlier models from this generation are available, 2019 and newer versions offer 26 additional horsepower plus a telescoping steering column for better driving position adjustment. The Club trim level stands out as the preferred choice, adding various mechanical upgrades that enhance the Miata’s performance through winding roads.

The Subaru BRZ and Toyota 86 represent twin small coupes developed jointly by both manufacturers. These vehicles deliver an engaging, mechanical driving experience that has become increasingly rare in modern cars. Following the 2017 refresh, the four-cylinder engine produces up to 205 horsepower, providing adequate performance without making it too easy to reach troublesome speeds. Both include rear seating, though it’s quite compact and better suited for cargo storage.

Look for: Choosing 2017 and newer models ensures access to significant improvements in gearing and suspension calibration. The Toyota 86 typically costs slightly less than the BRZ, making it the better value proposition. BRZ models with the Performance package are particularly sought-after due to their enhanced brakes and suspension components.

The Volkswagen Golf GTI from this period epitomizes the daily-driver performance vehicle concept. It combines four-door hatchback utility with genuinely engaging driving dynamics. The turbocharged four-cylinder engine delivers up to 228 horsepower, varying by model year and equipment level. Transmission options include either a six-speed manual or a six- or seven-speed automatic, depending on the specific year.

Look for: Target GTI models in SE or Autobahn trim levels. These higher trims include the most standard equipment, including premium audio systems, upgraded braking components, and a limited-slip differential that helps maximize traction during acceleration.

A reasonable budget now provides access to an impressive variety of performance options. Buyers should conduct thorough research to avoid vehicles showing signs of deferred maintenance, neglect, or extensive modifications. However, for less than $25,000, shoppers can select from some of the most enjoyable and purpose-built performance cars from recent years. Current conditions favor driving enthusiasts.

This story was provided to The Associated Press by the automotive website Edmunds. Josh Jacquot is a contributor at Edmunds.

NEW YORK — Elon Musk’s rocket company is preparing for what could become the largest initial public offering in history, and the firm wants everyday investors to have an unusually large stake in the launch.

Space Exploration Technologies Corp., commonly known as SpaceX, is planning to allocate a significant portion of its stock debut directly to individual “retail” investors — those who trade through smartphone apps and personal brokerage accounts rather than large institutional funds with professional trading operations.

Several key factors stand out as the public offering draws near:

While most stock debuts typically reserve just 5% to 10% of shares for individual investors according to Fidelity, SpaceX could allocate as much as 30% to this group. The rocket manufacturer expects everyday investors to access its IPO through major platforms including Charles Schwab, Fidelity, Robinhood, SoFi and E-Trade by Morgan Stanley.

Fidelity is lowering its account requirements significantly for this offering, allowing investors with just $2,000 in their accounts to potentially purchase SpaceX shares. This represents a dramatic reduction from the typical $100,000 to $500,000 minimum requirements for other equity offerings.

The high level of anticipated interest means not everyone who expresses interest will necessarily receive shares in the offering.

While the excitement surrounding SpaceX might tempt investors to quickly flip their shares for profit if prices surge, brokerages maintain policies that prevent investors from participating in future offerings if they sell IPO shares too rapidly, typically within a few weeks.

SpaceX is cautioning that significant retail investor participation could lead to price volatility. Individual investors tend to trade more emotionally compared to pension funds, which make calculated decisions based on long-term payment obligations stretching years or decades into the future.

Individual investors were the driving force behind GameStop and other “meme stocks” that reached what professional investors considered irrational heights during 2021.

According to Jay Ritter, an IPO specialist and professor at the University of Florida’s Warrington College of Business, the average IPO has gained 7% on its first trading day from 1980 through 2025.

However, IPOs typically underperform comparable companies over the following five years, excluding their debut day performance. They trail by an average of 3.6% annually, Ritter’s research shows.

Launching objects beyond Earth’s atmosphere and building massive AI data centers requires enormous capital, and SpaceX has accumulated $29.1 billion in debt as of March’s end.

The company reported losses of $4.9 billion last year and an additional $4.3 billion during the first quarter of 2026. SpaceX admits it “may not achieve profitability in the future.”

Stock prices generally follow company profitability trends over extended periods.

Many investors might inadvertently become SpaceX shareholders without making a direct purchase. Millions of people own shares in the QQQ exchange-traded fund, which mirrors the Nasdaq 100 index and manages approximately $460 billion in assets.

The Nasdaq 100 traditionally added new members each December during annual restructuring to maintain its roster of the 100 largest non-financial Nasdaq companies. Recent rule changes now permit major companies to join the Nasdaq 100 after just 15 trading sessions.

If SpaceX’s public debut meets expectations, it could rapidly enter both the Nasdaq 100 and QQQ fund, automatically making QQQ shareholders partial SpaceX owners.

The organization managing the more widely followed S&P 500 index has not implemented similar fast-track entry procedures.

SpaceX’s IPO will feature 555.6 million “Class A” shares, with each share providing one vote on shareholder matters. These voting rights cover important decisions like selecting board members who oversee the chief executive.

The offering excludes “Class B” shares, which carry 10 votes each. Musk’s extensive holdings of these super-voting shares would give him control over more than 82% of total voting power after the IPO.

In regulatory filings, SpaceX acknowledges potential conflicts of interest between the company and Musk, along with his other ventures like Tesla.

Pension fund leaders representing firefighters, teachers and other workers in California and New York wrote to SpaceX last month criticizing several IPO provisions, including “super voting shares,” mandatory arbitration requirements instead of lawsuit options, and Musk’s concentrated power.

These officials noted they could become SpaceX owners through index funds that automatically purchase stocks when they join specific indexes.

Musk’s voting control over the board would grant him extraordinary authority over SpaceX, “essentially making him unfireable without his own consent,” wrote the CEO of California Public Employees’ Retirement System, the New York state comptroller and the New York City comptroller.

“This level of insulation from accountability is virtually unheard of among any other large U.S. issuer whose governing documents foreclose accountability to public owners on these terms.”

SpaceX will trade under ticker symbol “SPCX,” which closely resembles “SPCE,” the symbol used by Richard Branson’s Virgin Galactic Holdings.

Investment banking giant Morgan Stanley predicts that worldwide debt financing tied to artificial intelligence projects will more than double, reaching approximately $570 billion by 2026, as major technology firms seek alternative funding methods to support enormous AI infrastructure spending.

The financial services company outlined several key trends driving this surge:

• Technology corporations that traditionally depended on robust cash generation are now increasingly seeking debt financing as their investment requirements skyrocket

• Morgan Stanley calculates that AI-linked worldwide debt financing reached approximately $236 billion by May 31, 2026, representing a four-fold increase compared to the previous year’s equivalent timeframe

• Major cloud computing companies Alphabet, Amazon, Microsoft and Meta are projected to allocate $700 billion in expenditures during the current year

• Morgan Stanley anticipates financing activity will accelerate during the latter half of 2026, with hyperscaler capital expenditures expected to exceed $1 trillion in 2027

“Hyperscalers have been broadening their investor base through non-USD issuance,” the brokerage said

“Fundamental (economic) backdrop remains strong, but for now we think (bond) price action is being mostly driven by supply expectations,” Morgan Stanley added

• Funding for semiconductor firms, which is experiencing increased activity in both public and private markets, is moving toward shorter-duration agreements that require complete repayment over time, according to Morgan Stanley

Chinese automakers experienced a dramatic surge in overseas shipments during May, with passenger vehicle exports climbing 73% compared to the same period last year to reach approximately 809,000 units, according to industry data released Wednesday.

The China Association of Automobile Manufacturers announced that shipments of electric vehicles and plug-in hybrid models more than doubled in May from the previous year, totaling around 435,000 units and representing over half of all passenger car exports. This increase came as elevated gasoline and diesel costs resulting from the conflict in Iran sparked greater global interest in electric alternatives.

The May figures represent growth from approximately 796,000 passenger vehicles exported in April, based on data from the China Association of Automobile Manufacturers.

Chinese car manufacturers like BYD are intensifying their international expansion efforts, focusing on markets across Latin America, Asia and Europe. This overseas push comes as domestic sales face challenges, partly due to reduced government subsidies encouraging consumers to adopt electric vehicles.

Within China, passenger car sales dropped 23.4% year-over-year in May to 1.44 million vehicles, marking the seventh consecutive month of declining sales compared to the previous year, the CAAM reported. Sales of traditional gasoline and diesel vehicles plummeted nearly 42% from the year before as electric vehicle market share expanded.

Financial analysts at UBS project China’s annual passenger car exports will increase roughly 40% in 2026 compared to the previous year, with electric vehicle exports potentially rising about 80%.

“The high oil price certainly has translated into further higher interest on the EV,” said Paul Gong, head of UBS’s China automotive industry research.

According to Gong, China’s vehicle exports performed better than anticipated during the early months of this year, while domestic car sales fell short of expectations.

Claire Yuan, an automotive analyst at S&P Global Ratings, anticipates China’s passenger car exports will sustain strong growth momentum in 2026, predicting year-over-year increases of 30% to 50%.

The International Energy Agency reported in its latest annual global EV outlook released in May that approximately one in four new vehicles sold worldwide last year was electric, with that proportion expected to grow further this year despite a slower beginning.

The IEA projects electric vehicle sales could reach 23 million units and account for nearly 30% of all vehicle sales in 2026.

China leads global electric vehicle production, manufacturing the majority of EVs sold internationally.

BYD, China’s top electric vehicle manufacturer, sold more than 160,000 vehicles in international markets during May, representing an 80% increase from the previous year. The company targets overseas sales of 1.5 million vehicles this year, up more than 40% from last year’s 1.05 million units.

The southern China-based automaker surpassed Tesla last year to become the world’s largest electric vehicle manufacturer by sales volume.

Expanding international sales may also improve profit margins for Chinese automakers, as aggressive pricing competition within China last year reduced profitability for many manufacturers.

S&P’s Yuan suggested China’s domestic car sales might recover during the year’s second half as consumers increase purchases following automakers’ introduction of new vehicle models.

A major Swedish truck manufacturer announced Wednesday that business conditions remain favorable across key markets, with particularly robust demand continuing in North America as production levels gradually climb.

Speaking from Sweden ahead of investor presentations, the company reported that European customer demand and deliveries are holding steady at positive levels throughout their operations during the current quarter.

The manufacturer noted that while cost pressures are mounting, the heavy utilization of customer vehicles and equipment is boosting service business activity.

Company executives projected that both their truck manufacturing and construction equipment divisions will exceed traditional growth patterns, though they did not provide specific timing for these projections.

In autonomous vehicle development, the company’s self-driving truck division is targeting fully automated highway operations by early 2027, with goals of reaching approximately $3 billion in revenue over the next five years to enhance overall company profits.

The firm’s engine and power systems division has set ambitious targets to double sales in upcoming years.

The Swedish company ranks among the globe’s leading producers of commercial trucks, buses and construction machinery.

Company shares remained flat by mid-morning European trading compared to the previous day’s close.

A substantial wave of foreign currency exchange requests worth an estimated $1.5 billion connected to SpaceX’s initial public offering has been processed in South Korea, according to an informed source who spoke with Reuters on Wednesday.

The enormous volume of currency conversion requests tied to the SpaceX IPO had put considerable pressure on South Korea’s won currency over the past several weeks, but this demand has now been resolved.

According to the source, who has access to information about dollar-won transactions in the domestic market, the approximately $1.5 billion worth of requests to purchase dollars has completed its final phase.

The source requested anonymity due to the sensitive nature of the information.

The head of Chinese electric vehicle manufacturer Xpeng announced Wednesday that he will take direct control of the company’s robotics division as the automaker prepares for large-scale production of humanoid robots by the end of the year.

In an internal company memo obtained by Reuters, Xpeng CEO He Xiaopeng explained his decision: “The (robot) industry is becoming increasingly hot and competitive, and we have clearly seen the direction and timing of victory, but it still requires more arduous implementation and extremely high decision-making ability.”

He Xiaopeng stated that his appointment as head of the robotics division takes effect right away and comes “on the eve of mass production and commercialisation” of the company’s human-like IRON robots, which were first introduced last year.

The leadership change occurs amid reports that Shi Xiaoxin, a key executive working on the IRON robot project, departed the company earlier this month. On Wednesday, Xpeng verified that Shi had stepped down from his position as senior director of robotics product planning, though the company provided no additional information about his departure.

The electric vehicle company is shifting its focus toward what it calls “physical AI,” which includes humanoid robots, autonomous taxis, and aerial vehicles. Xpeng has established a target of beginning mass production of IRON robots before 2026 ends.

According to He Xiaopeng’s comments during a late May earnings conference call, the humanoid robots will first be tested in Xpeng’s retail locations before being sold to business clients in China and international markets starting in 2027. At that point, robotics equipment and associated artificial intelligence technology are expected to become major sources of income and profit margins for the company.

Financial results showed Xpeng’s first-quarter revenue dropped 17.6% compared to the same period last year, while net losses increased from the previous year. This marked a reversal from the company’s first-ever profitable quarter in the fourth quarter of last year.

Film directors have secured a preliminary four-year contract agreement with major studios and streaming platforms following negotiations that began a month ago.

The tentative agreement was announced Tuesday between the Directors Guild of America and the Alliance of Motion Picture and Television Producers after four weeks of contract discussions.

These negotiations marked the first conducted under the leadership of new DGA President Christopher Nolan, who assumed the position in September.

The four-year contract duration matches recent agreements ratified by writers and actors unions, extending beyond the typical three-year industry standard and suggesting the possibility of extended labor stability amid ongoing industry changes.

According to a DGA statement, the tentative contract requires approval from the guild’s national board before any terms are disclosed. Following board approval, the agreement must receive ratification from guild membership, though preliminary agreements typically receive approval at both levels.

The current directors’ contract was scheduled to end on June 30.

In their statement, the AMPTP expressed satisfaction with reaching “a fair deal that helps advance a stable and successful entertainment industry.”

Markets across Asia declined Wednesday as technology companies faced continued pressure following Wall Street’s latest selloff, while crude oil prices climbed amid escalating tensions between the United States and Iran.

Military action resumed early Wednesday after an Army helicopter crashed near the Strait of Hormuz, an incident President Donald Trump attributed to Iran. Iranian officials vowed retaliation, stating they “will leave no attack or threat unanswered.”

This renewed conflict has raised questions about achieving a lasting resolution to the war, which has now stretched beyond three months and continues to unsettle markets already shaken by significant selling in artificial intelligence-related companies.

Energy markets responded to uncertainty surrounding the critical shipping route, with crude oil prices continuing their recent upward trajectory.

International benchmark Brent crude climbed 0.9% to reach $92.30 per barrel after declining Wednesday. This represents a substantial increase from approximately $70 per barrel before the conflict began in late February.

U.S. crude futures advanced 1% to $89.04 per barrel.

“The situation remains highly volatile,” wrote ING commodities strategists Warren Patterson and Ewa Manthey in their Wednesday analysis. “This once again demonstrates the difficulty Iran and the U.S. face in working toward a sustainable ceasefire that allows for the free flow of vessels through the Strait of Hormuz.”

The analysts observed that seasonal demand patterns typically strengthen during this period, contributing additional upward momentum to pricing.

U.S. market futures declined following losses among semiconductor companies, including Micron Technology, Advanced Micro Devices, or AMD, and Marvell Technology during Tuesday’s session.

South Korea’s Kospi index dropped 4.7% to 7,720.59, reversing the previous day’s gains. Samsung Electronics, the nation’s largest company by market value and a major producer of memory and logic chips, fell 5.8%. Fellow chipmaker SK Hynix tumbled 6.3%.

Japan’s Nikkei 225 declined 1.4% to 64,524.84 following economic data revealing the producer price index increased 6.3% in May compared to the same month last year. This marked the most rapid pace of wholesale price growth in over three years.

SoftBank Group, the multinational investment company with significant artificial intelligence investments, saw shares drop 8.9%. However, semiconductor equipment manufacturer Tokyo Electron gained 5.3%.

In China, Hong Kong’s Hang Seng index fell 1.1% to 24,296.62, while the Shanghai Composite decreased 0.7% to 3,980.24. Government data released Wednesday indicated Chinese producer prices reached a nearly four-year peak of 3.9% in May versus the prior year.

Australia’s S&P/ASX 200 managed a modest 0.2% increase to 8,624.50.

Taiwan’s Taiex traded 1.6% lower, while India’s Sensex advanced 0.6%.

Tuesday’s U.S. trading saw the S&P 500 slip 0.3% to 7,386.65. The Dow Jones Industrial Average managed a 0.2% gain to 50,872.11, while the tech-focused Nasdaq composite fell 1% to 25,678.82.

Micron Technology experienced significant volatility, starting with a 4% gain before plunging 10% and ultimately closing down 1.4%. Marvell Technology declined 7.6%, while AMD dropped 3%.

Market participants are closely watching upcoming U.S. inflation data as the Iran conflict continues pushing global energy costs higher.

Currency markets showed the U.S. dollar holding steady at 160.36 Japanese yen. The euro traded at $1.1550, up from $1.1543.

WASHINGTON — Consumer costs are anticipated to have climbed for the third consecutive month in May, raising alarm among Federal Reserve inflation specialists and highlighting the challenge that escalating prices present for the Trump administration with midterm elections approaching.

Economic analysts surveyed by FactSet predict inflation will hit 4.2% in May compared to the same period last year when the Labor Department releases the data on Wednesday. This annual figure would represent an increase from April’s 3.8% rate. Monthly price growth is projected at 0.5%, slightly lower than April’s 0.6% jump.

Price increases had been moderating until President Donald Trump implemented extensive tariffs in April 2025, which raised costs for numerous products. Costs have since accelerated following the Iran war’s impact on oil and gas expenses, transforming affordability into a major political concern. The critical question remains whether inflation will subside once the conflict concludes and energy prices drop, or continue at elevated levels beyond the war’s end.

Several economic experts express concern that costs remain high in sectors that shouldn’t be influenced by fuel expenses, including dental services, auto repair, and various other service industries. Meanwhile, wage growth remains moderate, which should limit companies’ pressure to increase prices further.

For this reason, analysts and financial markets will pay close attention to core price data, which eliminates volatile food and energy components. Core inflation is projected to have increased 0.3% from April to May, based on FactSet predictions, a rate consistent with annual figures well above the Fed’s 2% goal. Yearly core inflation may rise to 2.9% from 2.8%.

Fuel costs have declined this month, but they increased in May due to Iran’s blockade of the Strait of Hormuz, which has restricted roughly one-fifth of global oil supplies. According to the Energy Information Administration, pump prices climbed from approximately $4.04 in mid-April to $4.49 in mid-May.

AAA reports they have subsequently dropped to a nationwide average of $4.16, potentially resulting in lower inflation data for June.

Higher diesel costs have increased transportation expenses, with shipping companies like UPS and FedEx implementing fuel surcharges over recent months. This development will likely drive up food prices, which rose 0.7% in April and stand 2.9% above year-ago levels.

Persistent inflation has altered discussions among Fed officials, who indicated early this year they were considering two additional rate reductions. Currently, more policymakers suggest the Fed’s next action will probably be an increase rather than a decrease. Fed rate hikes typically result in higher costs for home mortgages, car loans, and commercial borrowing over time.

Financial market participants anticipate the Fed will increase rates in December, based on CME Fedwatch futures pricing.

While inflation remains elevated, employment conditions appear to be strengthening, with May hiring reaching healthy levels, and economic expansion continues. These encouraging indicators suggest the Fed doesn’t need to lower rates to boost growth and employment. They also demonstrate that current Fed rates aren’t so restrictive that they’re hampering economic activity. However, some officials prefer rates that would moderate growth somewhat, as this approach can reduce inflation.

Two-year and 10-year Treasury yields have risen following Friday’s employment report showing accelerated May hiring, indicating investors believe inflation may stay high and eventually necessitate Fed rate increases.

Rising inflation has placed new Fed Chair Kevin Warsh in a challenging position. He supported rate reductions last year and was selected by Trump to succeed Jerome Powell, after Trump consistently criticized Powell for not lowering rates more aggressively. Currently, Trump and White House representatives are primarily contending that rates don’t need to rise, rather than demanding additional cuts.

Some analysts continue to see tariffs driving up certain costs, especially apparel, which increased 0.6% in April and costs 4.2% more than a year ago. More expensive fuel may have also contributed to higher airfares last month, which would increase core inflation.

WASHINGTON, June 10 – Consumer prices across the United States are expected to have climbed in May at their steepest rate in three years, with escalating gasoline costs from Middle East tensions driving the increase and potentially convincing the Federal Reserve to maintain current interest rates through 2024.

Wednesday’s anticipated Consumer Price Index data from the Labor Department would mark the third consecutive month of robust year-over-year inflation readings, intensifying financial strain on American families as more people tap into personal savings to cover expenses. For the second month running, inflation is projected to exceed wage increases, potentially dampening broader economic expansion.

Rising living costs present a significant political challenge for President Donald Trump and his Republican Party as they work to maintain Congressional control in November’s midterm elections. Despite Trump’s 2024 presidential victory built largely on pledges to reduce inflation, his approval numbers have declined as economic frustrations grow.

“The top-line increase in inflation will outpace wage growth for the second consecutive month,” said Joseph Brusuelas, chief economist at RSM. “What that means is Americans are seeing their paycheck decline in real terms, which, if it were sustained, would tend to suggest we’re going to have a challenge around household consumption in the second half of the year.”

Economic forecasters surveyed by Reuters predict the Consumer Price Index climbed 4.2% over the 12 months ending in May, representing the steepest annual increase since April 2023 and surpassing April’s 3.8% gain. March saw a 3.3% year-over-year rise. Monthly figures are expected to show a 0.5% May increase following April’s 0.6% advance.

While the Federal Reserve uses Personal Consumption Expenditures Price Indexes to measure progress toward its 2% inflation goal, all price measures currently exceed that target.

National gasoline prices jumped 8.8% during May to reach $4.60 per gallon, according to U.S. Energy Information Administration data. Gas prices had surged more than 50% at one point following late February attacks by the U.S. and Israel on Iran.

Recent weeks have seen some price relief amid ceasefire developments, giving economists cautious optimism that May inflation figures might represent a temporary peak. While Strait of Hormuz shipping restrictions have elevated fertilizer costs, food prices have not yet seen significant impact.

“There is a good chance that the year-over-year advance in headline inflation peaks for the moment in May, though, of course, oil prices could surge again depending on the course of events in the Middle East,” said Stephen Stanley, chief U.S. economist at Santander U.S. Capital Markets.

LABOR MARKET IS RESILIENT

The inflation report follows last week’s employment data showing the economy added jobs above expectations for three straight months in May. Unemployment held steady at 4.3% for the third consecutive month. While financial markets have begun factoring in potential rate increases, economists maintain that the Federal Reserve faces a high threshold for tightening monetary policy.

Some analysts note that beyond elevated airfare costs, there’s limited evidence of oil price shocks spreading into service sectors.

Core CPI, which strips out volatile food and energy prices, is forecast to have risen 2.9% annually in May compared to April’s 2.8% increase. Monthly core CPI projections show a 0.3% gain after April’s 0.4% rise.

“If the core was to show some signs of pass through, higher energy costs being reflected into other categories as well, then that would be the story that would trigger the Fed rate-hike narrative,” said James Knightley, chief international economist at ING. “We’re in an environment where we’ve got a central bank that still considers the monetary policy stance to be somewhat restrictive.”

Expected monthly CPI moderation partly reflects diminishing effects from a one-time rent adjustment following last year’s government shutdown that disrupted data collection. Artificial intelligence spending increases are pushing up computer and software prices, though these carry less weight in core CPI calculations compared to core PCE inflation measures.

Unexpected declines in used vehicle prices have helped contain goods inflation. Economists remain split on import tariff impacts, with some seeing the pass-through effects largely complete while others argue duties continue elevating prices, particularly for clothing.

“The economy is nearing the end of the tariff pass-through phase,” said Diego Anzoategui, an economist at Morgan Stanley. “Our estimates suggest tariffs have lifted prices by about 63 basis points so far, with total pass-through closer to 70 basis points. We saw early signs of deceleration in March and expect that trend to continue.”

Facebook’s parent company Meta announced on Wednesday that it has formed a partnership with Indian billionaire Mukesh Ambani’s Reliance Industries to establish an artificial intelligence data center in India.

The facility will be constructed by Reliance in Jamnagar, Gujarat, featuring a 168 MW capacity. Meta will lease the data center with opportunities to expand operations as needed, according to the announcement.

The Japanese athletic footwear company Asics announced Wednesday it will separate its profitable Onitsuka Tiger brand into an independent subsidiary to enhance decision-making speed and strengthen market competition.

Company stock climbed 2.7% during late morning Tokyo trading, outperforming the broader TOPIX index which declined 0.7%.

The restructuring will move the Onitsuka Tiger operations to OT Group Corp, a completely owned subsidiary, through a corporate division that takes effect January 1st, according to the company’s announcement.

The brand has served as a major growth engine for the athletic company over recent years. Revenue from Onitsuka Tiger surged 43% year-over-year to 136.5 billion yen ($851.32 million) during the December-ending fiscal year, driven by robust European demand and tourist spending in Japan.

The Onitsuka Tiger division achieved a profit margin approaching 38%, ranking as the most profitable among the company’s five primary business segments.

The Japanese athletic wear and shoe manufacturer projected another record-breaking profit year during its February earnings announcement.

The brand, recognized for its vintage-style, clean aesthetic designs, originated from the company’s founding entity established in 1949 by Kihachiro Onitsuka, who believed creating athletic footwear would help develop healthy youth crucial for Japan’s post-World War Two recovery.

The founder created his initial basketball shoe design and chose the “Tiger” brand name, drawing inspiration from what he considered Asia’s most formidable animal’s power and speed.

($1 = 160.3400 yen)

The coffee giant Starbucks is exploring various strategies for its operations in Japan, which may include selling a portion of its ownership stake, according to a Tuesday report from Bloomberg News.

Industry sources familiar with the discussions suggest the potential transaction could fetch between ¥400 billion and ¥500 billion (approximately $2.5 billion to $3.1 billion), with possible buyers including competing companies in the sector and private equity investment groups.

When contacted for comment outside normal operating hours, Starbucks representatives had not yet responded to inquiries about the reported plans. The information in the Bloomberg report could not be independently confirmed.

The Seattle-headquartered coffee company previously acquired full ownership of Starbucks Coffee Japan Ltd in 2014, ending a joint venture arrangement with partner Sazaby League that had been in place since 1995.

Earlier this year in April, Starbucks completed a transaction with Boyu Capital to transfer control of its China business operations, with that deal placing a $4 billion valuation on those assets.

While the company reported its most robust quarterly sales increases in over two years this past April, CEO Brian Niccol’s restructuring efforts are driving up operational expenses, leaving uncertainty about when profitability margins will bounce back.

A massive $3.6 billion airport project in western Sydney will begin welcoming passengers this October following more than ten years of development and planning.

The new facility will provide around-the-clock flight operations, a significant advantage over Sydney’s current airport which faces strict nighttime noise regulations. Those restrictions prevent departures and arrivals between 11 p.m. and 6 a.m., creating scheduling challenges that other major Australian cities like Melbourne don’t face.

Located in Badgerys Creek approximately 37.3 miles west of Sydney’s downtown area, the Western Sydney Airport will serve the region’s rapidly expanding and culturally diverse communities with continuous daily operations.

The facility’s 24-hour schedule will benefit airlines operating routes to Asia and Gulf destinations that connect to European travel, though the western location may be less convenient for business travelers who typically purchase premium cabin seats.

“This is a big moment for Sydney, with passenger flights at Western Sydney Airport commencing in just 137 days,” Australian Transport Minister Catherine King said.

Jetstar, the budget division of Qantas, will operate the inaugural flight to the Gold Coast and has scheduled up to 14 weekly Melbourne services, four Gold Coast routes, and three Brisbane connections.

Beginning in March, Qantas’ regional operations will add Melbourne and Brisbane flights from the new location, with projections showing the airport will initially accommodate up to 10 million passengers yearly – roughly one-fourth the volume of the competing Sydney Airport.

CEO Vanessa Hudson announced that Qantas will establish a major cargo operation at the new airport, with freight services launching next month.

International service will include Air New Zealand’s Auckland flights starting October 26, while Singapore Airlines will begin daily flights to Singapore on November 23. The Singapore Airlines departure will utilize the midnight hour, capitalizing on the absence of curfew restrictions.

This development represents Australia’s first significant airport construction in more than five decades and serves as the centerpiece of an $18 billion federal investment in Western Sydney, which encompasses future rail connections through the Sydney Metro Airport line and extensive roadway improvements.

SoftBank Group’s negotiations with potential lenders to secure a minimum of $6 billion through a margin loan using its OpenAI investment as backing have encountered obstacles, according to a Wednesday report from Bloomberg News that referenced unnamed sources.

According to the report, the company is exploring alternative methods to raise funds, though it noted that SoftBank might still pursue the margin loan arrangement at some point down the road.

Reuters was unable to independently confirm the Bloomberg report.

A Canadian healthcare company successfully completed a major stock market debut Tuesday, with Apotex Health setting the price for its initial public offering at the maximum end of its projected range.

The company established its share price at C$24 each, generating approximately C$1.3 billion in total proceeds, equivalent to roughly $931.90 million in U.S. currency.

According to company officials, Apotex Health distributed 54.17 million common shares through the expanded offering. Trading is scheduled to commence Wednesday on the Toronto Stock Exchange, where shares will be available under the ticker symbol “APTX”.

The successful IPO represents one of the larger healthcare sector public offerings in the Canadian market this year, with the company achieving its maximum fundraising target.

The American currency remained stable against other major global currencies on Wednesday after US forces conducted military strikes against Iran, with market participants looking ahead to important inflation statistics that could provide insight into Federal Reserve monetary policy decisions.

US military forces carried out strikes against Iran on Tuesday following President Donald Trump’s statement that Tehran had shot down an American Apache helicopter in the Strait of Hormuz, creating obstacles for peace negotiations between the nations and adding stress to an already fragile ceasefire. However, Trump minimized the helicopter incident when speaking to The Wall Street Journal, saying it “wasn’t a big deal” and emphasizing that “the pilot is fine.”

Even with these developments and the weekend breakdown of the ceasefire, “we continue to assess the war to be on a de-escalatory path,” stated Harry Ottley, economist at Commonwealth Bank of Australia, in a note.

The dollar index, which tracks the American currency against a collection of other currencies including the yen and euro, rose slightly by 0.01% to reach 100.02.

The euro declined 0.05% to $1.1537 while the British pound dropped 0.04% to $1.337.

America’s economy is viewed as being more protected from energy-related disruptions compared to other nations, which has bolstered safe-haven interest in the dollar during the Iran conflict while putting pressure on the euro and Japanese yen.

At the same time, markets have almost completely priced in a Bank of Japan interest rate increase at the June 16 policy meeting, suggesting it would be unlikely by itself to cause a major shift in yen weakness if implemented.

“It’s going to take some hawkish commentary from Governor (Kazuo) Ueda that signals the BOJ could bring forward its next hike from December to September – with the possibility of a third hike before year-end,” noted Tony Sycamore, market analyst at IG, in a statement. “Without that or something similar, the Ministry of Finance will likely need to pull out its cheque book again to defend the currency.”

The Japanese currency weakened 0.03% against the dollar to 160.38 per dollar, staying near the 160 threshold widely considered a trigger point for possible official intervention.

Wednesday’s data revealed Japan’s wholesale prices jumped 6.3% year-over-year in May, surpassing forecasts and demonstrating growing price pressures from the Middle East conflict.

Later Wednesday, the United States will publish consumer price index figures for May, considered vital for determining whether the Fed might favor interest rate increases later this year after last week’s better-than-anticipated employment data.

“Markets will be watching whether the impact of persistently high oil prices spills over into services and other sectors. If rising inflationary pressure comes into sharper focus, the dollar is likely to attract further buying,” commented Akihiko Yokoo, senior analyst at Mitsubishi UFJ Bank, in a note.

Strong economic growth and ongoing inflation will probably maintain expectations leaning toward additional US rate increases, even though any potential US-Iran agreement could provide some relief.

Financial markets will also monitor the European Central Bank’s approaching policy meeting scheduled for Thursday, where a 25-basis-point rate increase is broadly anticipated.

The risk-sensitive Australian dollar fell 0.1% against the American currency to $0.7021. The New Zealand dollar declined 0.17% versus the greenback to $0.5812.

An Australian pharmaceutical company confirmed Wednesday that it has entered preliminary talks about potentially purchasing the well-known British pharmacy chain Boots, addressing recent media reports about the possible acquisition.

Sigma Healthcare, which operates as both a pharmaceutical distributor and retailer, acknowledged the early-stage discussions while emphasizing that the company regularly evaluates potential opportunities that might benefit shareholders. However, the company stressed that there is no guarantee any deal will ultimately come to fruition.

The head of Brazil’s aviation regulatory agency anticipates that U.S. authorities will approve the Boeing 737 MAX 10 aircraft before 2024 concludes, with Brazilian officials prepared to rapidly validate that decision domestically.

Tiago Faierstein, who leads ANAC, shared his outlook during discussions with Reuters at a global airline industry conference held in Rio de Janeiro this Monday. The approval process for the MAX 10 has experienced significant delays, making certification crucial for Boeing and airlines including Brazilian carrier Gol, which relies on this largest version of the 737 series for its expansion strategy.

“Because that is an FAA timeline, I can’t really comment, but I strongly believe it will happen this year,” Faierstein stated during the interview conducted alongside the airline executives’ meeting.

“We will work to make it quick here as well. We know Gol really needs these aircraft,” he added.

Both ANAC and the Federal Aviation Administration participate in the Certification Management Team, an international group that also encompasses European and Canadian regulatory bodies.

The aircraft manufacturer has encountered setbacks in obtaining approval for both its MAX 7 and MAX 10 variants, stemming from complications related to engine de-icing systems.

After traveling to the United States in May, Faierstein also advocated for enhanced collaboration between Brazilian and American officials regarding certification of electric vertical takeoff and landing aircraft, a new category of aviation technology.

Brazil has gained an early advantage in developing these battery-powered vehicles through Embraer’s Eve division, which aims to create aircraft capable of transporting passengers on brief urban journeys while avoiding ground traffic congestion.

Eve has recently adjusted its service launch timeline, moving the target from 2027 to 2028, following an earlier postponement from the original 2026 goal.

Faierstein described the updated schedule as achievable given the complexity of establishing the necessary infrastructure, including charging stations, pilot certification programs, and air traffic management protocols.

“Regarding the aircraft process, we are very confident. Embraer is making progress and the tests have been successful. The issue is the ecosystem,” the ANAC head explained.

Australian airline Qantas Airways announced Wednesday that both the main carrier and its budget subsidiary Jetstar will begin passenger operations at Western Sydney International Airport when the facility opens on October 25 this year.

The flight schedules include several key routes:

• Jetstar will begin operations immediately when the airport opens, offering up to 14 weekly flights to Melbourne, plus four weekly flights to the Gold Coast and three to Brisbane.

• Qantas will start its passenger service on March 28 next year, providing four weekly flights each to Melbourne and Brisbane.

• The carrier’s first freight service will depart from the airport’s round-the-clock cargo facility on the evening of July 27.

• “WSI will also become a key hub for Qantas Freight, with more than 850 tonnes of freight expected to move through our new terminal each week,” CEO Vanessa Hudson said.

• Singapore Airlines previously announced in March that it would begin daily direct flights to the new airport starting November 23.

• Air New Zealand began selling tickets in April for three weekly round-trip flights that will start operating from the airport beginning October 26.

• New Zealand’s flag carrier had signed an agreement with the airport in June 2025.

General Motors has announced a new software upgrade that will enable electric vehicle owners across the United States to sell electricity back to power companies, marking another step by automakers into the energy business sector.

The software enhancement expands capabilities for owners who already have GM’s vehicle-to-home energy systems, which currently allow electric cars to supply power to houses during outages. Now, these same drivers will be able to send electricity back to the power grid and receive compensation from utilities during peak demand periods, with GM taking a portion of those payments.

According to a GM spokesperson, the company currently has thousands of customers using the vehicle-to-home technology, though specific numbers were not disclosed. The success of this grid-selling feature may depend on whether drivers are willing to use their car’s battery power for the grid rather than keeping it fully charged for driving.

The rollout faces several challenges, as very few utility companies currently offer this type of service, and the practice remains largely experimental. GM Energy Chief Revenue Officer Aseem Kapur told Reuters during a San Francisco event that the company is currently in talks with approximately 10 utility providers.

Kapur indicated that commercial availability of the grid-selling technology will likely begin within the coming months, with California and Texas expected to be the first states to offer the service. In Michigan, GM has partnered with utility DTE Energy to test the vehicle-to-grid concept with 30 company employees.

Utility companies have shown caution regarding vehicle-to-grid programs due to concerns about required investments, technological uncertainties, and questions about user adoption rates.

GM joins other major automakers, including crosstown competitor Ford Motor, in developing energy-related business ventures, following the path established by Tesla in expanding beyond traditional vehicle manufacturing.

Shares of Chilean lithium manufacturer SQM jumped more than 3% during Tuesday trading in Santiago following renewed support from financial analysts at Scotiabank.

The banking institution said recent discussions with company leadership strengthened their confidence in robust lithium demand expansion and highlighted SQM’s competitive cost structure at Chile’s Salar de Atacama facility.

Following discussions with SQM Chief Financial Officer Gerardo Illanes and Head of Investor Relations Isabel Bendeck, Scotiabank kept its “Sector Outperform” rating and $105 price target unchanged, naming SQM among its preferred investments for 2026.

According to the analyst report, SQM anticipates lithium incentive pricing around $18 per kilogram, falling within a broader $15-to-$20 range, and projects demand will continue growing substantially through 2030, necessitating additional supply from new market participants.

The analysis revealed SQM’s comprehensive lithium production costs, not including payments to state development agency Corfo, stand at approximately $4,500 per metric ton, maintaining its status among the sector’s most cost-effective producers.

Scotiabank reported that SQM plans to make a decision in the upcoming months regarding potential expansion of the Mt. Holland project in Australia, which could increase capacity to 100,000 metric tons, with SQM holding rights to half that amount.

The bank noted SQM identified attractive financial prospects in battery energy storage systems, or BESS, where the company believes lithium demand growth is becoming more influenced by cost advantages than consumer preferences.

According to Scotiabank, SQM acknowledges it cannot sustain its current market position permanently, with company officials stating that industry expansion is occurring too quickly for any individual producer to maintain pace.

SQM identified environmental permitting as the primary bottleneck limiting new lithium supply development.