Individual Economists

Golden Naked Trump Statue Unveiled At European Parliament

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Golden Naked Trump Statue Unveiled At European Parliament

A golden statue of a naked Donald Trump is on display at the European Parliament in Strasbourg, France, at one of the busiest intersections connecting two of the Parliament's buildings, and is scheduled to stay until Thursday. Named Orange Plague, the 8.5-foot sculpture shows the US president holding justice scales and a long golf club, its ball made to look like the world, while sitting on the shoulders of a smaller, clothed man. Text on the plinth reads: "I am sitting on the back of a man. He is sinking under my burden. I will do anything to help him. Except stepping down from his back."

Jens Galschiot, the Danish artist who created the sculpture, said: "Trump represents one of the greatest threats to the rules-based world order, democratic values and our common effort to solving the climate crisis."

"We must address this issue and stand together against such destructive influence."

Galschiot said the statue, covered in 23-carat gold leaf, was inspired by the story of The Emperor's New Clothes, in which a vain leader parades naked through the street, believing he is dressed in the finest clothes.

In the fairytale, no one tells him that he is naked out of fear and flattery until a child points out his nudity and the emperor becomes a figure of ridicule.

Per Clausen, a Left-wing Danish European Parliament member, invited the artist to exhibit the statue in the building.

He said that he was not worried about a potential reaction from Trump, adding: "If someone is so thin-skinned that they cannot tolerate this sculpture being exhibited in the European Parliament, then they have no place on the world stage."

The statue was previously on display during the 30th United Nations Climate Change Conference (COP30), which was held in Brazil last year. It also made an appearance in Germany during this year's Munich Security Conference.

Worth reading in full over at The Telegraph.

Tyler Durden Thu, 10/08/2026 - 10:35

Consumers May Be Eligible For Up To $280 In Equifax Credit Reporting Settlement

Zero Hedge -

Consumers May Be Eligible For Up To $280 In Equifax Credit Reporting Settlement

Authored by Bill Pan via The Epoch Times,

Millions of consumers whose credit information was inaccurately reported by Equifax because of a coding error may be eligible for compensation from a proposed $100 million class-action settlement.

Equifax Inc. corporate offices in Atlanta on Sept. 8, 2017. Tami Chappell/Reuters

The settlement covers U.S. consumers for whom Equifax reported a credit score or credit attribute to a third party between March 17, 2022, and April 8, 2022, that differed from what would have been reported without the coding issue, according to the court-approved settlement website.

Consumers who received an email or mailed notice are considered settlement class members based on Equifax's records.

To receive money, eligible consumers must submit a valid claim by Dec. 28. Claims can be filed online through the settlement website or submitted by mail.

It is currently estimated that each claimant could receive between $95 and $280. The actual amount will depend on how much money remains after court-approved attorneys' fees, litigation expenses, administrative costs, and other expenses are deducted, as well as the number of valid claims filed.

Attorneys representing the class have said that the settlement could cover roughly 4 million people nationwide.

Those who object to the settlement's terms or wish to exclude themselves from it must do so by Nov. 27.

The settlement has received preliminary approval from a federal judge but is not yet final. A final approval hearing is scheduled for Jan. 22, 2027.

The settlement would resolve nearly four years of litigation stemming from a coding problem in one of Equifax's computer systems in the spring of 2022.

According to the complaint, Equifax allegedly provided inaccurate scores on consumers applying for auto loans, mortgages, and credit cards to a range of banks and other lenders.

The scores were sometimes off by 20 points or more in either direction, the plaintiffs said, potentially affecting the interest rates consumers were offered or whether their applications were approved.

The plaintiffs alleged that Equifax violated the federal Fair Credit Reporting Act, which requires credit-reporting agencies to follow reasonable procedures to ensure the maximum possible accuracy of the information they provide.

Equifax has denied wrongdoing and has not admitted that it violated the law.

In August 2022, the company acknowledged that it had identified a coding issue in a system used to calculate certain elements, or attributes, of credit scores. Equifax stated at the time that fewer than 300,000 consumers experienced a score change of 25 points or more.

"While the score may have shifted, a score shift does not necessarily mean that a consumer's credit decision was negatively impacted," the company stated at that time.

The episode was a major setback for Equifax, which was also the target of a massive data breach in 2017 that exposed the personal information of nearly 150 million Americans.

Federal prosecutors later charged four members of China's military with hacking Equifax and stealing sensitive personal data, including names, Social Security numbers, and birth dates.

In the aftermath of the 2017 data breach, Equifax agreed to pay at least $575 million to settle investigations and claims stemming from the breach. Under that settlement, consumers were offered free credit monitoring or the option to seek a cash payment, initially advertised at up to $125.

Tyler Durden Thu, 10/08/2026 - 10:20

Thumos-Maxxing

Zero Hedge -

Thumos-Maxxing

By Benjamin Picton, senior market strategist at Rabobank

US sovereign yields steadied yesterday as a 10-year bond auction saw strong investor demand. $39bn of bonds were sold with a high yield of 5.30% with a bid to cover ratio of 2.77x and low primary dealer takedown. The result signals that investors are beginning to view government debt as attractive at current levels and eased fears of a disorderly correction in bond prices that had been sparked by a poor 5-year auction in late September that saw the second-longest tail on record.

Relative valuations may be playing a role here as US equity indices pulled back from record highs. US equity market breadth is remarkably narrow, with AI-adjacent tech megacaps leading indices higher in recent times as many other sectors struggle for traction. The AI narrative had a wobble yesterday as SpaceX 5-year CDS spreads widened by 16.5bps to 197bps. That follows news that the company is seeking to raise $40bn in fresh debt financing to buy NVIDIA chips, with similarly large deals also in the works for Broadcomm ($50bn) and Oracle.

Markets were probably not reassured by comments published by the FT yesterday that “investors whom SpaceX has previously approached about financing its multibillion-dollar chip purchase said they only received a short two-page deal memo with pictures of outer space and an arrow pointing out that the company was going to build data centres “somewhere in the universe”.” The ambition is admirable, but for a market that is already running long on vibes this might have been a bridge too far.

Similar wobbles in the AI narrative have emerged Down Under as the Aussie market seeks to digest the initial float of data centre operator Firmus. Firmus had been seeking to raise $5.5bn at a valuation of approximately $30.5bn, which would have made it the second-largest IPO in Australian history, trailing only the privatisation of a public telecommunications monopoly in the late 1990s. The Australian Financial Review reports that the original offer price of A$11/share is now repricing closer to A$8.25/share as key local pension funds opted to pass on the float and demand from US long-only funds proved weaker than expected.

While US bonds were finding bids and investors were casting a more critical eye over the AI investment boom, European sovereign yields were again under pressure. French 10-year OAT yields were up by 11.8bps to 4.86%, Italian 10-year yields were up 9.7bps to 4.62% and Greek 10-year yields rose 8.9bps to 4.47%. Even the not-quite-European UK saw a sharp lift in borrowing costs, with 10-year gilt yields rising 6.8bps while Bunds bucked the trend to see yields finish slightly lower. The Wall Street Journal reports that France is considering issuing more short-dated debt; a fresh instance of a developed market economy behaving like an emerging market.

With the turmoil in European bonds ongoing, and riots across France generating unwelcome visual metaphors of people dining calmly as the streets burn, US Secretary of State Marco Rubio yesterday issued a rallying cry to Western civilization. He gave a speech in Athens with the Parthenon as the backdrop, urging the West to regain its Thumos, the “fire of passion, strength, courage, pride”. Rubio mounted a defense of nationalism, decrying the transfer of sovereignty to global bureaucracies. He argued that the West is now at a crossroads where decisions taken today will determine whether it remains pre-eminent or resigns itself to “atrophy and servitude and decline”.

According to Rubio, the US has chosen the former and is seeking to extend the frontier in advanced manufacturing, superintelligence, drones, weapons, warfare; chips, minerals, cyber, and “every other domain of human possibility”. Doubtless this is why recent calls from US tech CEOs to “pace the frontier” of artificial intelligence development were met with short shrift by the White House, and intrepid back-of-the-napkin risk taking is perhaps viewed more positively in the United States than elsewhere.

Rubio’s remarks were pointed directly at Europe, and particularly the European Union. The criticism of global bureaucracies reflects earlier criticisms in the US’s 2025 National Security Strategy where the US warned that Europe faces “civilizational erasure” and urged it to re-capture its civilizational self-confidence, stating clearly that the United States would seek to “cultivate resistance to Europe’s current trajectory” and lend support to “healthy nations” of Central, Eastern and Southern Europe.

These latter were widely interpreted as a pledge to support right-wing nationalist political movements on the continent in similar fashion to how the United States has (successfully) supported pro-US right-wing movements in South America. Newswires this morning are reporting that right-wing Brazilian presidential candidate Flavio Bolsonaro has won the support of four key centre-right parties ahead of a runoff vote against incumbent leftist Lula de Silva. Installing a more Washington-friendly (and perhaps China-unfriendly) government in Brasilia would be the last major piece of the puzzle for the Donroe Doctrine in South America, leaving only Canada as a problem to be solved in the Western hemisphere.

Rubio went on to say that there are emerging signs that Europe is beginning to awake from its “long slumber”, pointing to rising defense spending and the recent agreement over Greenland as examples of progress. He also pointed to expansion of production and manufacturing, though – perhaps politely – he declined to be specific in this area.

That’s as China yesterday rejected European calls to voluntarily limit exports of hybrid electric vehicles into the European market. It was hoped that China would agree to a soft quota that would reduce China’s share of the European market from 30% to 15%, and that the need for more overt trade restrictions to protect European industry and invite retaliation from the Chinese side might therefore be avoided.

Clearly, that is now unlikely to be the case. It’s worth noting that another broad policy ambition noted in the US National Security Strategy was “encouraging Europe to take action to combat mercantilist overcapacity…” Are we about to see that ambition realized through an assertive and self-confident European policy response? It would mark a departure from ten years of criticism of the United States doing exactly the same thing.

Tyler Durden Thu, 10/08/2026 - 09:25

Jobless Claims Confirm 'Low-Hire, Low Fire' Economy

Zero Hedge -

Jobless Claims Confirm 'Low-Hire, Low Fire' Economy

For the fourth week in a row, the number of Americans filing for jobless benefits for the first time printed below 200k (197k) implying the layoff/separation rate is extremely subdued.

Employers are not cutting headcount in any meaningful way - job security for people who already have jobs is still pretty good.

California saw by far the biggest jump in initial claims...

Continuing jobless claims fell once again - now at its lowest since April 2023...

However, payrolls tell the other half of the story. September nonfarm payrolls came in at just +29k (with prior months revised down), well below the already modest recent trend. Net employment change is simply hires minus separations. When separations are that low but the net number is mediocre, hiring itself must have slowed substantially.

So the market has cooled mainly through reduced hiring rather than rising firings. That keeps the unemployment rate relatively contained (4.2% in September) even as it becomes harder for job seekers, switchers, and new entrants to land roles. 

Economists (including various Fed research notes) have been describing this as a stable-but-fragile equilibrium for a while: low layoffs prop things up, but the low hiring rate leaves little cushion if demand weakens further or a shock forces companies to start cutting.

It’s also consistent with slower labor-force growth from demographics and reduced immigration - fewer people needing to be absorbed means weaker payroll growth can still leave unemployment from rising sharply.

The bottom line is simple: the 'low-hire, low-fire' economy continues to roll along with no obvious signs of AI's productivity surge (or replacement projections).

Tyler Durden Thu, 10/08/2026 - 08:50

Blame The Parents...

Zero Hedge -

Blame The Parents...

Authored by Steve Watson via Modernity.news,

First-graders generally do not walk into reading class with a loaded 9mm, shoot the teacher, and then dare the police to come get them. But in this case, that is exactly what happened.

Body-camera footage from a shooting at Richneck Elementary in Newport News, Virginia, was released this week after over three years of being sealed.

The video shows a 6-year-old, identified in court records only as J.T., who had already shot first-grade teacher Abigail Zwerner. Reading specialist Amy Kovac had him in a bear hug when Newport News Officer Brian Torrez walked into the classroom 11. What happened next was even more astounding.

The kid is seen telling the officers, "Both y'all want a fucking piece of me, bitch?!" Kovac tells him to stop. He answers, "Fuck you, bitch," and on and on it goes from there.

This is a kid who is barely older than toddler age.

He told them he stole the gun from his mother. A sheriff's deputy found the 9mm Taurus on the classroom floor, 15 to 20 feet away, with seven more rounds still in it. Zwerner had already got her students out. The bullet went through her hand and into her chest. She collapsed in the school office.

Police Chief Steve Drew said at the time that the shooting "was not accidental. It was intentional," and called Zwerner "a hero."

The gun belonged to Deja Nicole Taylor's. Court documents say her son climbed onto her dresser that morning, took it from her purse, and put it in his backpack. Investigators later found about an ounce of marijuana in the home. Taylor pleaded guilty to felony child neglect and to federal charges for lying about drug use on the form she used to buy the pistol.

Circuit Court Judge Christopher Papile gave her two years on the state count, more than the six months prosecutors had asked for. "A parent's ultimate and overarching and primary and paramount responsibility is to keep a child safe," he said. "To protect the child. To keep them from bad influences. To keep them from dangerous situations. To keep them healthy and nurtured. Ms. Taylor has abdicated most if not all of these responsibilities."

Chief U.S. District Judge Mark S. Davis, sentencing her to 21 months on the federal counts, called it "a dereliction of duty and responsibility in parenting" and said the case "cries out for imprisonment." She has since been released. The boy, now 9 or 10, lives in Newport News with his great-grandfather. He was never charged. Virginia does not prosecute 6-year-olds.

The school had warnings the same day. Staff told assistant principal Ebony Parker the child might have a gun. A jury later found that doing nothing was gross negligence and awarded Zwerner $10 million. Her lawyer, Diane Toscano, told that jury: "Who would think a 6-year-old would bring a gun to school and shoot their teacher? It's Dr. Parker's job to believe that that is possible. It's her job to investigate it and get to the very bottom of it." Parker's lawyer called that "Monday morning quarterbacking."

In May 2026 a judge threw out eight felony child-neglect counts against Parker before the case ever reached a verdict. Circuit Court Judge Rebecca Robinson said from the bench, "What happened that day was awful," and later, defending the decision to blur the child's face on the public tape, "I signed up for that, but this 6-year-old did not."

Awful is not an explanation. A first-grader who tells police he stole a gun so he could shoot his teacher did not arrive at that sentence in a vacuum.

The Richneck tape lands in the same feed as clips of other children who have not shot anyone yet but are already rehearsing the part.

One, posted last month, shows toddlers hanging out of a car window with styrofoam cups, throwing finger guns and middle fingers. The account that spread it asked why anyone was surprised to see "their offspring throwing up gun hand gestures and sticking up the middle finger."

Commentator Jeffery Mead urged, "This is very clear evidence of a problematic culture. Black Americans as a whole have a culture problem and our standards are too low. We have to fix the culture."

A separate clip of two little girls in matching pink, bandanas and beads, drew the same argument from the comments under it: the degenerate performance is being rewarded, not corrected.

These kids are like this for a reason, and we all know what the reason is. The parents.

None of these children are naturally like this. The head bobbing, the finger guns, the "come get it, bitch" attitude. Sometimes mimicry is cute, until a teacher is bleeding out on the office floor and other children are cowering for their lives.

Tyler Durden Thu, 10/08/2026 - 08:40

Futures Slide As Oil Jumps On Iran Strike Report, Bond Rout Resumes Ahead Of 30Y Auction

Zero Hedge -

Futures Slide As Oil Jumps On Iran Strike Report, Bond Rout Resumes Ahead Of 30Y Auction

US equity futures are lower, extending Wednesday's decline, with the S&P sliding further from Tuesday's record high as oil spikes on reports that Trump may order fresh strikes on Iran before the midterms, a tanker was hit off Qatar in the first strike deep inside the Persian Gulf in about a month, and an approaching storm has shut some US output; as a result the global bond rout picks up where it left off with 10Y yields hitting 5.35%. As of 8:00 am ET, S&P futures are 0.4% lower at 7,820 and Nasdaq futures are down 0.5%, while Dow and Russell futures are both down 0.8%. This follows a session in which the S&P (-0.2%) slipped from its record, almost three-quarters of the index fell and the Russell 2000 (-1.3%) sank to a 4-month low. In premarket trading, Tesla and Nvidia underperform their Mag 7 peers as chip, growth and AI-related stocks trend lower, while Microsoft and Apple edge higher; Defensives lead Cyclicals with Energy the bright spot as hurricane Isaias forces Gulf producers to shut in wells. Wolfspeed soars 17% on a $1.5 billion DoD loan commitment and Palantir gains 2.2% on a Goldman upgrade. The day's driver is oil (again): Brent has jumped 5% to above $105 and WTI is up around 5% after The Atlantic reported the White House asked the Pentagon for Iran strike options that could be executed before November, a tanker was hit off Qatar and the Houthis fired a ballistic missile at Riyadh's airport. Treasuries are 5-7bp cheaper across the curve with the belly leading, and the 10Y is near session highs around 5.35%, a whisker from Wednesday's 24-year high of 5.36%, ahead of today's $22BN 30Y reopening. The Bloomberg dollar index is flat near a 3-month high and the DXY trades around 102.36; USDJPY is at 158.2 and EURUSD is stuck near 1.12, its lowest since May 2025. In commodities, Energy is bid while the rest of the complex is weaker: gold is up 0.3% to $4,123, silver is down 1.4% at $58.90, US natgas is up 1% to $3.24 and European TTF gas is above €80/MWh. Bitcoin is down 0.5% at around $83,000. US economic data slate includes initial jobless claims (8:30am, est. 200k) and August wholesale inventories (10am). Fed speaker slate includes Kashkari (10:40am) and Musalem (1:40pm); Waller already spoke at 4:30am. Treasury sells $22BN of 30-year bonds at 1pm.

In premarket trading, Tesla and Nvidia are underperforming Magnificent 7 peers, as chip, growth and other AI-related stocks are trending lower. Meanwhile, Microsoft and Apple edge higher: Tesla (TSLA) -1.1%, Nvidia (NVDA) -1%, Alphabet (GOOGL) -0.9%, Meta Platforms (META) -0.7%, Amazon (AMZN) -0.7%, Apple (AAPL) +0.1%, Microsoft (MSFT) unchanged

  • Generac Holdings Inc. shares (GNRC) are up 1.4% outperforming amid weakness in many other industrial names, after two bullish nods on Wall Street.
  • Goldman Sachs (GS -1.5%) and Wells Fargo (WFC -1%) are buys at TD Cowen, while Morgan Stanley (MS -1.2%) is rated a hold on valuations.
  • Levi Strauss (LEVI) falls 3.4% after the denim retailer posted the slowest growth in its direct-to-consumer channels since late 2022.
  • NXP Semiconductors NV shares (NXPI) are down 3.5% after Citi downgraded the chipmaker to neutral from buy, writing that it’s becoming “increasingly selective.”
  • Palantir shares (PLTR) gain 2.6% as Goldman Sachs upgrades to buy from neutral as the stock has underperformed this year.
  • PepsiCo shares (PEP) are up 2.2% after the food and beverage company reported third-quarter core earnings per share above what analysts expected.
  • Shares in energy and utilities companies (CVX +1.9%, OXY +2.6%) are rising as hurricane Isaias develops in the Atlantic, with oil and gas producers shutting in wells and evacuating personnel as the storm tracks toward the Gulf Coast.
  • Shares of Haemonetics (HAE) rise 18% after CSL Plasma expanded its relationship with the maker of blood-processing systems.
  • Spotify Technology SA (SPOT) falls 0.5% as it is being started with a neutral rating and $540 price target at Piper Sandler, which writes that it is “looking for a catalyst” to get more excited about the audio-streaming company.
  • Wolfspeed (WOLF) jumps 14% after Department of Defense announced a $1.5b conditional loan commitment to the company.

In other corporate news, Crescent Energy agreed to buy Devon's Eagle Ford assets for $4.22 billion in cash. David Ellison and his family invested approximately $17 billion to complete Paramount Skydance's acquisition of Warner Bros. Discovery. Broadcom, fresh off the launch of a $60 billion debt financing to help fund Anthropic's AI build-out, is already sketching out plans for its next blockbuster deal, and is said to be in talks to arrange about $30 billion in debt financing to help OpenAI buy the custom AI chips the two are developing together. Isomorphic Labs, spun out of Google's DeepMind, is in early talks to raise new funds at a valuation of at least $40 billion. Tencent is mulling a $5 billion bond sale. Blue Origin is likely to pursue an IPO within the next several years, Jeff Bezos said; SK Hynix's Solidigm has picked lead banks for its US IPO next year, and spinal disc maker Centinel Spine filed for an IPO. Energy Capital Partners offloaded about $890 million of Constellation Energy shares. Apollo's £5.7 billion EasyJet takeover is on track for completion early next year. The AI data center boom has ignited a bidding war for a critical TDK unit; FedEx and Advent reached a 98.49% stake in InPost. PepsiCo cut its full-year core constant currency EPS growth outlook. And Goldman's special bonus for its top brass is set to exceed $500 million (the bond market isn't the only thing hitting multi-decade highs).

The global selloff is back. Oil jumped again after a report that the White House asked the Pentagon to draw up strike options against Iran coupled with news that a tanker was hit off Qatar in the first strike deep inside the Persian Gulf in about a month, and the resulting bond selloff has been fairly uniform, with US, UK and German 10-year yields rising 4-5bps each, while the Stoxx 600 drops 0.8%. Futures point to a weaker open as the convergence of AI-fueled capex inflation, mounting energy supply pressures, and a Fed that appears far from finished with its tightening cycle weigh on sentiment, as Bloomberg's Neil Campling puts it. After stocks managed to grind higher for days even as the long end made fresh 24-year highs, the cracks are now visible above the surface too (as we noted last night in "Stocks Slide From All Time High As Gaping Cracks Form Just Below The Surface"). The FOMC minutes showed all 19 officials backed September's hike with "most" seeing another by year end, which sits awkwardly with the roughly 17-20% odds priced for October, and Fed Governor Waller this morning said further hikes will likely be needed, though there is "some flexibility" on timing and they don't need to come at consecutive meetings. Wednesday's stellar 10Y auction bought the bond market exactly one evening of peace.

Doubts over policy have seldom been greater, with an index tracking US economic policy uncertainty registering one of its biggest spikes in three years. Yet volatility remains subdued, and the implied volatility ratio between the High Yield Corporate Bond ETF and the SPY is near year-to-date highs.

Divergent reactions to AI are showing up across the globe. Samsung's record-breaking quarterly preliminary results failed to meet the highest of expectations while TSMC posted 51% sales growth. AI angst is showing up elsewhere too: Australian data center company Firmus Grid closed the books on its IPO amid concerns the deal could be pulled due to inadequate support, hours after San Francisco passed a temporary ban on new data centers within its borders, and the head of market strategy at Panmure Liberum warns an AI bubble risk could soon trigger the most severe crash since the global financial crisis. Meanwhile, the ratio of open interest in put options on the QQQ has reached its highest level since June relative to calls, a sign investors may be increasing protection against a decline in the Nasdaq 100.

“Higher bond yields will certainly put the spotlight on the equity market, and it would put blaring lights on the emerging markets, in particular, and within emerging market sectors such as Singapore banks would be facing vulnerabilities,” said Nirgunan Tiruchelvam, an analyst at Aletheia Capital.

JPM's Market Intel desk under Andrew Tyler sums up the morning: futures are weaker as oil and bond yields move higher, with yields up 4-5bp across the curve and the USD setting a new 52-week high; Memory and Semis lag, and "in a similar pattern to yesterday, Defensives are leading Cyclicals with Energy the bright spot." The bigger warning is in positioning: JPM's Positioning Intel flags crowding in NDX longs (98th percentile) and RTY shorts (3rd percentile); in recent unwinds that pair has lost 1.9% over a month vs. gaining 80bp in a typical month. JPM's Manish Sinha says the bank's Macro Conditions indicator has tightened to above the 95th percentile, "levels last seen during the 2025 tariff escalation," leaving Momentum vulnerable either way, and recommends buying protection into year-end/earnings. On the cash desk, Matt Reiner says high-touch volumes are tracking 57% below the 5-day average because "confidence is shot," quoting a client: "I'm right one day, wrong the next." And TMT's Brian Heavey sees a "clear de-risk in Europe spilling over to US tech." Still, the team sticks with its Tactically Bullish view, with Tech the core long, and notes the biggest upside catalyst would be a US/Iran deal (which, judging by this morning's headlines, is not imminent).

Goldman's Rich Privorotsky frames the problem: "the AI micro continues to accelerate while the macro backdrop gets progressively more difficult. Strong earnings simply aren't enough to offset the pressure from rates, energy and capital supply." With SpaceX reportedly seeking $40bn and Broadcom exploring more than $50bn of financing, he warns "the crowding out effect is potentially immense," asking "why rush to buy sovereign duration when an extraordinary amount of high quality private sector paper is coming at you?" (see "SpaceX Credit Risk Hits New High As AI Debt Binge Fears Spook Bondholders"). On oil: "With the midterms approaching, I am less convinced we have a credible off ramp." He notes the Russell has underperformed the NDX in 17 of the last 20 sessions. Meanwhile, Goldman's Prime book shows net exposure to the Mag7 at ~22% of total US exposure, the highest on record since the start of 2022 (see "The Asymmetry Has Shifted"), while semis are ~12% of US exposure vs ~6% at the start of the year. On the Fed, Goldman economists still expect a second hike in December, but see "a strong chance the FOMC ultimately concludes further tightening is unnecessary," and Abhay Duggirala estimates about three-fourths of this year's core PCE overshoot is mismeasurement or one-offs.

Retail is in focus with PepsiCo earnings and a host of household names including Target, Lowe's and embattled Nike set to appear at a retail and consumer conference in New York. Costco reported 13% year-over-year net sales growth in September, supported by a 4.7% increase in traffic. Watch US insurers, utilities and home improvement retailer stocks as hurricane Isaias develops, with oil and gas producers shutting in wells and evacuating personnel as the storm tracks toward the Gulf Coast.

In Europe, France remains the epicenter. The Franco-German 10-year spread widened 12bps on Wednesday to almost 140bps after the WSJ reported Paris is weighing more short-dated issuance, Bank of France Governor Moulin said "the conditions are not met today for an intervention from the ECB," and this morning five-year OAT yields are up another 9bps to 4.33%. Nearly €215 billion of France's corporate bonds now trade as if they were safer than the government's, an almost 18-fold increase since the start of 2026, and the euro is pinned near $1.12, its lowest since May 2025. French banks are once again taking the sovereign hit (see "European Banks Tumble As French Bond Crash Reactivates "Doom Loop""), while Italian PM Meloni needs to win a confidence vote today to avoid further bond-market tensions, according to Citi.

In Europe, the Stoxx 600 is down 0.8% to 625.65, with 409 members down and 180 up, extending Wednesday's losses as the jump in oil fans inflation fears and puts it on course for a second straight losing week. Media, Energy and Utilities lead, while Banks, Health Care and Construction lag; JPM notes its Stagflation basket is near the top of the leaderboard alongside MidEast Escalation plays and Quality, while Growth, LT Momentum and semis underperform as "Beta is being sold alongside Momentum." The CAC 40 slid further into a correction. Morgan Stanley's Marina Zavolock says European stocks may be approaching levels where they typically stabilized in previous episodes of sharply rising bond yields. Here are the biggest European movers:

  • Argenx shares slump as much as 17%, the steepest drop since December 2023, after the biotech firm discontinued a phase 3 trial of a drug for Sjogren's disease, a chronic autoimmune disorder.
  • Tesco shares rise as much as 3.9% as analysts said the company's first-half results were strong and pointed to a £200m increase in share buyback plans.
  • ALK-Abello rises as much as 7.7%, the most in more than five months, after again upgrading its guidance for the year. The Danish pharmaceutical company's latest boost implies about 4% upside to consensus profit expectations, Jefferies writes in a note.
  • Standard Life shares fall as much as 8.3%, the most in 18 months, after shareholder Aberdeen Group offered up to 52m shares in the insurer at a discount to Wednesday's close.
  • Imperial Brands shares rise as much as 4% after the company reaffirmed its adjusted operating profit forecast for the full year.

Asian stocks were set for their lowest close since mid-September as rising oil prices and elevated bond yields fueled inflation concerns, with MSCI's Asia Pacific Index dropping as much as 1.8%. South Korea's Kospi led losses, sliding 2.6% and closing below its 50dma as foreigners sold for a fourth session (about $1.1bn in tech) after Samsung's record profit, a nearly nine-fold rise, still missed lofty expectations. This is happening just as the flood of corporate buybacks is coming to an end, which we warned - correctly - would slame the index.

Japan's Nikkei fell 1.4% back below 70,000 and the Topix underperformed (TOPIX Banks -3%) after the TSE announced plans to cut the index's constituents by about 40%. The Hang Seng fell 1.4% to its lowest since July 7, and mainland Chinese shares declined as trading resumed after the Golden Week holiday, with the CSI 300 down 1.35% and the Star50 at a six-month low intraday. Singapore's Straits Times dropped 3% as banks extended losses after JPMorgan warned surging long-term yields will hurt Southeast Asian lenders' earnings, and the ASX 200 fell 0.8%. India's Nifty slid 1.6% after the RBI's hawkish shift. Goldman's Rachel Hu notes that "both the Nikkei and TOPIX surrendered all afternoon gains in the final hour as US equity futures weakened sharply."

In FX, the Bloomberg Dollar Spot Index is flat, close to its highest in more than three months, while the DXY trades in a narrow 102.13-102.39 range. The loonie leads G10 on the bid in energy, while the yen lags on widening yield differentials, with USDJPY at 158.2. EURUSD holds near recent lows just shy of 1.12, and options traders are paying a premium to hedge against euro losses versus the pound for the first time in more than two years. The PBOC said it has no intent to devalue the yuan for trade advantage ahead of EU trade talks. “With BBDXY hovering around 3-month highs, dollar bulls are likely to need a fresh catalyst to push the dollar to test the June highs,” said Sean Callow, a senior analyst at ITC Markets in Sydney.

In rates, Treasuries pressured lower over the London session, driven by sharp gains in oil prices following the bigger Middle East escalation. US yields are cheaper by 5bp to 7bp across the curve with the belly leading losses, cheapening the 2s5s30s fly by around 3bp, and the 10Y is near session highs around 5.35%. Ahead of the 30Y reopening, 30-year yields trade up almost 6bp on the day, adding some late concession: the $22 billion sale at 1pm has the WI trading around 5.725%, ~42bp cheaper than the September stop-out, which tailed by 0.4bp. Bunds are outperforming by 1bp in the 10-year sector while gilts lag, with five-year gilt yields up 7bps to 5.05%; money markets price around 23bps of BOE hikes for November and 4bps of ECB hikes this month. NatWest, meanwhile, picked a fine moment to announce it will exit as a primary dealer for US and European government bonds. The IG dollar issuance slate includes a couple of deals; this week's volume is set to significantly miss the $25 billion low end of syndicate forecasts. Fed speaker focus is on Kashkari and Musalem after Waller's hawkish-leaning comments.

JPM's Nick Panigirtzoglou, author of Flows and Liquidity, flags a bifurcated positioning picture in bonds, with quant funds benefiting from short duration exposures while discretionary managers scramble to contain long duration and spread overhangs, and says his bias is that discretionary managers "amplify the current negative momentum" in the near term.

In commodities, WTI has risen to a $92.03 high from $88.77 and Brent extended gains to 5%, trading above $105 a barrel, as US-Iran tensions escalate and Hurricane Isaias, packing 80 mph winds, makes its way across the Gulf, shutting in some output. Saudi Arabia is in talks to formalize Hormuz shuttle services, while Iraq cut November prices to Asia and ADNOC set Murban at an $11 premium to Dubai. European diesel cracks have leapt and TTF gas rose to a €80.67/MWh high. Spot gold recovered from $4,103 to $4,143 before fading, silver fell to $58.71, and LME copper trades on either side of $14,500/t. Goldman's commodity team argues China's petchem oil demand weakness, which helped shrink the deficit from the Hormuz shock, is mostly unsustainable.

US economic data slate includes initial jobless claims (8:30am, est. 200k) and August wholesale inventories (10am). Fed speaker slate includes Kashkari (10:40am) and Musalem (1:40pm). Treasury sells $22BN in 30-year bonds at 1pm and conducts a buyback of up to $6BN of longer-dated debt.

PepsiCo is the only significant earnings report before the bell, and the ECB publishes the account of its September meeting at 7:30am ET. Target, Lowe's and Nike appear at a retail and consumer conference in New York, and JPM hosts a trading desk call at 10am covering macro, the midterms and earnings season.

Market Snapshot

Top Overnight News

  • The White House has asked the Pentagon to develop strike options against Iranian targets that could be exercised ahead of the midterms, according to two administration officials. The planning underscores just how much the president wants to reduce gas prices and demonstrate progress in the conflict before the vote. The Atlantic
  • The US military has been ordered to be ready for possible Iran strikes as President Trump weighs the timing, with the Pentagon said to have instructed CENTCOM several days ago to conclude preparations for resuming major combat operations in Iran; any campaign is expected to be a joint US-Israeli one including large bombing of Iranian energy, infrastructure and nuclear targets. Axios
  • Attacks on tankers sailing through the Strait of Hormuz hit their highest last week of any week since the Iran war began, according to maritime security sources tracking incidents, amid a bigger export push by Gulf producers. RTRS
  • The EU is taking a more assertive approach to China as it heads into talks aimed at avoiding a trade war. The meeting comes as the EU prepares to curb Chinese hybrid-car imports. BBG
  • Japan’s 30-year government bond auction drew firm demand as elevated yields attracted investors. The bid-to-cover ratio at Thursday’s sale was 3.88 compared with 3.79 at the previous auction and a 12-month average of 3.56. Japan’s bonds were steady after the sale.
  • The BoJ said price increases driven by higher raw material costs were spreading to consumer goods with some firms hiking prices more often, signaling its concern over broadening inflationary pressure. RTRS
  • France is considering boosting issuance of shorter-term debt, as investors grow more hesitant to lend to the debt-laden country for longer periods. WSJ
  • France Finance Minister Roland Lescure told the BBC that there is still investor demand for government bonds. About 38% of France’s high-grade corporate bonds now trade at lower yields than comparable sovereign debt. BBG
  • Broadcom is said to be in talks to arrange about $30 billion in debt financing to help OpenAI buy custom AI chips the companies are developing together. Tencent is mulling a $5 billion bond sale, people familiar said. BBG
  • The Fed’s Christopher Waller said further rate hikes will probably be needed, though officials have some flexibility on timing. BBG
  • Crescent Energy to buy Devon's Eagle Ford assets for $4.22 billion in cash. BBG
  • Hurricane Isaias is in the US Gulf with 80 mph winds and still strengthening, with Gulf producers shutting in wells and evacuating personnel. BBG
  • Saudi Arabia is in talks to formalize Hormuz shuttle services in a fight for market share. BBG
  • Germany doubled its 2026 growth outlook as manufacturing rallies. BBG
  • NatWest is pulling back from dealing US and European government bonds, exiting as a primary dealer. BBG
  • Goldman's special bonus for top brass is set to exceed $500 million. BBG
  • US President Trump administration moves towards temporary sales of some unapproved peptides: Washington Post.
  • US is set to announce commitments from AI firms to provide more than USD 1bln in computing credits: Washington Post.
  • BofA Total Card Spending (w/e Oct 3rd) +3% Y/Y (prev. +5.6%); lower income spending growth continued to outpace higher income. Newsquawk
  • Net exposure to the Mag7 on Goldman's Prime book is ~22% of total US exposure, the highest on record since the start of 2022; US Tech saw its largest monthly % buying since Feb '25 in September. GS Prime
  • JPM Positioning Intel flags crowding in NDX longs (98th percentile) and RTY shorts (3rd percentile), warning of near-term RTY outperformance risk. JPM

A more detailed look at global markets courtesy of Newsquawk

APAC stocks were mostly on the back foot following the negative handover from Wall St, where stock markets pulled back from recent record highs amid bond market volatility, while sentiment overnight was pressured as oil rebounded amid geopolitical risks after reports that the US military has been ordered to be ready for possible Iran strikes, with President Trump weighing the timing and could resume strikes before the Midterm elections, but with no decision made. ASX 200 was dragged lower as weakness in miners, materials and resources clouded over the gains in energy and resilience in defensives, while there was also an uptick in inflation expectations. Nikkei 225 retreated back beneath the 70,000 level as it continued to fade the recent tech-driven rally, while the TOPIX underperformed following the announcement that the Tokyo Stock Exchange plans to reduce the number of constituents in the index by about 40% to 986 stocks. KOSPI was pressured alongside indecision in Samsung Electronics shares following its preliminary Q3 earnings results, which showed operating profit surged 783% Y/Y, but missed the lofty expectations. Hang Seng and Shanghai Comp were subdued despite the resumption of trading in the mainland following a week-long hiatus, with pressure seen in tech stocks and sentiment was also not helped by trade frictions as the EU is said to be preparing a temporary import cap on Chinese hybrid cars.

Top Asian News

  • China is building data centres at rapid speed across its energy-rich rural areas as Beijing seeks to turn abundant electricity and cheap land into an advantage in a global race to develop AI, according to FT.
  • Japan's PM Takaichi said fiscal stability is a pre-requisite to policy and said consumption tax cut won't create social security gap. Furthermore, Takaichi said that they are aiming to win markets trust by maintaining communication with the market with high transparency, and that they respect the BoJ's monetary policy. On JGBs, she said they will work to keep JGB sales around FY25's JPY 40tln level. Later, Kyodo reported that Japan PM Takaichi said that they will decide flexibly on extending tax cuts in an emergency.
  • Japan reportedly plans 5.4% sales subsidy for farmers, Kyodo reported.
  • A Japanese official said strengthening oil reserve capacity across Asia is a priority area in cooperation with ASEAN and a special meeting with Middle East oil-producing countries will be held on Thursday after the conclusion of the ASEAN ministerial meeting.

European bourses (STOXX 600 -0.8%) are lower across the board, weighed by the upside across the energy complex amidst reports of potential US strikes on Iran before the midterms (see geopolitics section for details). Outside of the aforementioned geopolitics, Samsung Electronics and TSMC reported Q3 metrics. For the former, its revenue and operating profit missed estimates; on the other hand, the latter beat forecasts. Samsung shares fell 2.4% in Asia trade following its metrics, despite reporting a near nine-fold rise in quarterly operating profit, while TSMC (-1.4%) also slipped, although to a lesser degree. Sectors point to the negative bias. Media tops the sector pile, closely followed by Energy and Utilities. Underperformance comes from Banks, Health Care and Construction. US equity futures follow their European peers amid the rise in energy prices. Well-known investor Paulson has recently highlighted that the last time oil was above USD 100/bbl, US yields were above 5% and the USD was elevated, the S&P 500 dropped as much as 15% in the following three to five months. TSMC (2330 TT) Q3 Revenue TWD 1.49tln (exp. 1.46tln); Sept. Revenue 551.9bln (prev. 331bln Y/Y). Samsung Electronics (005930 KS) Prelim. Q3 (KRW): Operating Profit 107.4tln (exp. 108.7tln), Revenue 195tln (exp. 199tln).

Top European News

  • BoE Credit Conditions Survey Q3'26: Lenders reported that the availability of secured credit to households decreased.
  • BoE Bank Liabilities Survey Q3'26: Lenders reported that total funding volumes increased in the three months.
  • Italy Deputy Economy Minister said that they are in talks with banks and energy groups over the contribution to state finances as it finishes its 2027 budget plan.

FX

  • G10s are mixed against the USD; the Loonie holds towards the top of the pile, given the bid in energy benchmarks, whilst the JPY lags on widening yield differentials. Oil prices have taken another leg higher following reports that President Trump could strike Iran before the midterms; moreover, a hurricane in the Gulf of Mexico has led to supply disruptions in the region. (Please see commodities for details)
  • DXY is essentially flat and trades within a narrow 102.13 to 102.39 range. Rangebound trade in the aftermath of an uneventful FOMC Minutes, but despite the rise in energy prices. Most recently, the Fed’s Waller provided some hawkish-leaning comments. He mentioned that more rate hikes are likely needed to tame inflation, but there is flexibility over the pace, and hikes do not need to be consecutive. This spurred some initial two-way action, before the index climbed higher, but remained within earlier ranges.
  • EUR is essentially flat this morning, and holds near recent lows just shy of the 1.12 mark. Political updates have taken a breather this morning, but still remain a key theme in the region. Germany’s coalition meeting took place in the prior session, which did not yield any significant progress, but perhaps more pertinently, a major breakdown from the coalition has to have occurred. Over in France, the OAT-Bund spread remains elevated at 142bps - with eyes now on October 13th for the start of the budget debate. Politics aside, EU-China trade relations have been shaken in recent days after reports that the EU is to impose a temporary import ban on Chinese hybrid EVs. EU Trade Commissioner Sefcovic is currently in China and is set to hold meetings with the Chinese Commerce Minister in hopes of easing tensions. Notable talking points will be on addressing the massive trade deficit with China and discussions on critical minerals.
  • PBoC does not intend to devalue the CNY currency for trade advantages.

Central Banks

  • Fed’s Waller (Voter, Dovish) said more rate hikes are likely needed to tame inflation, but there is flexibility over the pace and hikes do not need to be consecutive. On inflation, Waller said inflation remains too high, with AI investment and the ongoing energy shock among persistent inflationary forces. On the labour market, he said it was solid and stable in September despite weaker job creation and added that there is evidence that the economy is strengthening in H2'26. On Fed communication, Waller said communications can avoid promises of forward guidance while improving outcomes by signalling to markets about possible policy choices.
  • BoJ maintained the assessment for seven of Japan's nine regions in its quarterly report, and raised assessment for two of the regions. Said many regions said firms continue to offer high wages, while some regions said firms are struggling to pass on costs could curb wage increases. Many regions said firms were passing on rising costs from Middle East conflicts, weak yen, as well as distribution and labour costs while some regions said that some firms in the areas were raising prices more frequently than in the past.
  • BoE’s Pill said current price pressures are concerning and need to be addressed and that monetary policy must focus strongly on inflation.
  • BoE's Greene said she thinks the UK will see some second round effects from current inflation and that there are early indications that UK wages will grow around 3.5% next year, which is worrying.
  • ECB's Dolenc said inflation risks are skewed to the upside on oil, gas, food and strong growth, and added that more stable core inflation provides some reassurance that broader price pressures are contained. Dolenc reiterated a meeting-by-meeting approach and added that monetary policy is transmitted more or less homogeneously into broader financial conditions.
  • ECB's Moulin said that inflation is clearly 100% energy and does not see second round effects, while adding that the geopolitical shock is transmitting into financial shock. Furthermore, Moulin said that economic growth in the Euro area has been quite resilient.
  • ECB's Sleijpen said the energy shock is quite persistent and that inflation expectations are well anchored. Sleijpen added that he does not expect second-round inflation effects.
  • ECB’s Zigman said the October meeting will involve intensive discussions.
  • ECB's Wunsch said that the case for lifting the minimum reserve requirement is not very clear or convincing.
  • SNB's Martin said inflation pressures have slightly increased since June and the recent rise is due to a lift in oil prices. Martin added that they are not observing any second round inflationary effects, which is extremely reassuring, while stating that there is no need to change monetary policy at this stage.

Fixed Income

  • A bearish session thus far for fixed after the slightly firmer bias that was ultimately seen on Wednesday in USTs. Currently, USTs are lower by about 10 ticks and at the lower end of 104-04+ to 104-15+ parameter. Fed’s Waller sparked a very slight hawkish reaction, as his comments on future tightening were slightly more hawkish than what we saw from him before the September meeting; but, as he voted for a hike in September, the language today is not particularly surprising.
  • Otherwise, the focus has been on geopolitics as crude posts gains in excess of USD 3/bbl after the escalation in tensions overnight on reports that the US is preparing for potential fresh action in Iran.
  • Updates that have lifted yields across the curve, which is bear-steepening once again stateside while the belly is subject to the most upside in Europe.
  • EGBs directionally in-fitting, though magnitudes somewhat more contained with Bunds lower by just 10 ticks or so, at a 120.61 base. However, OATs once again lag as the energy situation ties in with ongoing fiscal concern/pressures in France, sufficient so far to widen the OAT-Bund 10yr yield spread to a 142bps high for the session.
  • Gilts under pressure given the energy moves and the sensitivity of the UK economy to energy prices, particularly as we get ever closer to the first Burnham/Healey budget. At an 83.26 base, looking to 83.20 from Wednesday and then last week’s 83.17 contract low.
  • Japan sells JPY 450.7bln 30-yr JGBs; b/c 3.88x (prev. 3.79x), average yield 4.109% (prev. 4.079%), Tail in price 0.16 (prev. 0.28).

Commodities

  • WTI Nov and Brent Dec futures are firmer, extending their rebound from yesterday's lows as US-Iran tensions continue to escalate (see below for details). WTI has risen to a USD 92.03/bbl high from USD 88.77/bbl (vs yesterday's USD 87.96-90.98/bbl range), while Brent has climbed to USD 104.44/bbl from USD 100.76/bbl (vs yesterday's USD 99.61-102.59/bbl range). Eyes are also on Hurricane Isaias which is making its way across the Gulf Coast.
  • Dutch TTF is underpinned as renewed Middle Eastern escalation risks add to concerns around regional gas supplies and shipping routes. The broader energy complex has also been supported by the prospect of further military action, although the extent of any actual disruption remains uncertain. TTF has climbed from a EUR 79.31/MWh low to a EUR 80.67/MWh high.
  • Precious metals are mixed, with spot gold modestly firmer as geopolitical risks provide some support, although upside remains constrained by global yields and expectations of further Fed tightening, with Fed Waller's recent hawkish-leaning remarks, alongside the upticks in the DXY, not helping. The FOMC Minutes were largely a non-event and showed all participants supported September's 25bps hike, with most expecting another increase by year-end. Spot gold has recovered from a USD 4,103/oz low to a USD 4,143/oz peak before waning again, nonetheless still well within yesterday's USD 4,067-4,170/oz range, while spot silver has underperformed, falling from a USD 60.59/oz peak to a USD 58.71/oz low.
  • Base metals are mixed, with copper initially benefiting from the return of Chinese buyers following the week-long National Day holiday, although the broader risk-off tone and higher energy prices have since weighed on the complex. Reports that the EU is preparing a temporary import cap on Chinese hybrid cars have also added to trade concerns, while Goldman Sachs flagged subdued Chinese gasoline and diesel demand amid high domestic prices. 3M LME copper trades on either side of USD 14.5k/t in a USD 14,445.78-14,652.90/t range.
  • US NHC noted that hurricane warnings were issued for parts of the northern Gulf Coast ahead of hurricane Isaias. NHC later said that Hurricane Hunter reconnaissance shows Hurricane Isaias is still strengthening and preparations across the Gulf Coast warning area for storm surge and destructive winds should be completed today.
  • Saudi Arabia is said to be in talks to formalise Hormuz shuttle services in a push for market access, according to Bloomberg.
  • Iraq's SOMO set the official November selling price for Basrah Medium crude to Asia at a USD 2.80/bbl discount to the Oman/Dubai average; to Europe at a USD 3.85/bbl discount to dated Brent; to North and South America for November at a USD 3.10/bbl premium to Argus Sour crude.
  • UAE's ADNOC set November crude OSP at a premium of USD 11/bbl to Dubai quotes.
  • Venezuela's Cardon refinery is resuming crude distillation after a fire, according to workers.
  • Earthquake of magnitude 6.18 has struck Vanuatu Islands, according to GFZ.
  • Goldman Sachs sees gasoline and diesel demand remaining depressed due to high China product prices.

Trade/Tariffs

  • EU Trade Commissioner Sefcovic said EU businesses need improved access to China market; goal of trip to China is to rebalance China trade deficit.

Geopolitics: Middle East

  • US President Trump stated that he doesn't think an Iran deal is something he wants to do. It was separately reported that Trump said the Iranians are ready to offer us anything to stop what's happening, even though an agreement with them is not the option he truly wants, while Trump was also reported to say that Witkoff is now working on reaching an agreement with Iran and is making very good progress, according to Al Jazeera.
  • The US military has been ordered to be ready for possible Iran strikes as President Trump weighs the timing, with the Pentagon said to have instructed US CENTCOM several days ago to conclude preparations for resuming major combat operations in Iran, according to Axios. The directive didn't include a specific date for launching strikes and President Trump hasn't made any final decisions, although US and Israeli sources said it could happen before the US midterm election. Furthermore, it was stated that if major combat operations resume, they are likely to be a joint US and Israeli campaign and expected to include large bombing of Iranian energy, infrastructure and nuclear targets.
  • US President Trump and his national security team have discussed possibly resuming large-scale US military operations in Iran in the coming weeks, including the option of launching strikes before the midterm elections next month, according to NBC.
  • The US is stepping up preparations and has completed operational plans in case President Trump orders strikes against Iran, i24 News reported citing sources. The report added that forces at Fort Bragg are ready to deploy to any theatre within 18 hours.
  • Iran's working assumption is that there will be a US attack, according to Jerusalem Post's Stein, citing two regional diplomats, while the debate in Tehran is if they should attack first.
  • US CENTCOM rejected IRGC claims that the Strait of Hormuz is closed and that Iran has full control over it, while it stated that traffic is flowing through the strait carrying commercial goods and energy supplies, including 20mln bbls of crude.
  • Iran's Foreign Ministry spokesperson Baghaei said Iran's considerations and conditions for ending the war on all fronts and restoring security to the Persian Gulf region and the Strait have been clearly and firmly explained, and the necessary response to US proposals will be provided through mediators. He also stated that Iran will continue its efforts to strengthen trust and interaction between regional countries, while he stated that Tehran has spared no effort, in consultation with Oman as another coastal state, to restore security to the Strait of Hormuz, and the two sides had agreed on the geographical coordinates for safe transit routes and on how the agreement will be presented internationally, while the agreement between Iran and Oman on the safe routes of Hormuz will soon be reflected in international references.
  • Iranian intelligence services are reportedly targeting the US Ramstein and Spangdahlem air bases in Germany, WiWo reported. The report added that Iranian intelligence services are reportedly also targeting other US bases in Europe and planning complex attacks, with the UK also said to be a potential target.
  • Pakistan's Army Chief said they are working to reduce the differences between the US and Iran, according to Nour News.
  • Reports of explosions heard and fires visible in Riyadh, Saudi Arabia, according to Sabereen News. Satellite images also showed smoke rising from the Abqaiq oil facilities in Saudi Arabia, and a fire at both Abqaiq facilities and Tanjib gas plant.
  • Oil tanker assembly site reportedly exploded near UAE, Mizan reported; "Ocean sources reported the detection of a fire in the Gulf of Oman, approximately 30 nautical miles east of Fujairah."
  • Yemen's Houthis said they attacked King Khalid International Airport in Riyadh with a ballistic missile and stated Saudi airspace will be a target of operations except over Mecca and Medina.
  • Syria officially denied reports of sending troops to Yemen, with its presidential media advisor stating the reports are lies with no truth, and affirmed that Syria stands with Saudi Arabia's security.

Geopolitics: Ukraine

  • Russia's Kremlin said the exact timing of a call between Russian President Putin and US President Trump will be agreed, adding that the call may take place, TASS reported.
  • Ukrainian Forces strike an oil refinery in Russia’s Bashkortostan region and Russia's Gazprom Neftekhim Salavat.
  • UK Foreign Office said Foreign Secretary Miliband will say in Kyiv today that the UK remains firmly committed to supporting Ukraine.

Geopolitics: Other

  • North Korea leader Kim's sister Kim Yo-jong said South Korea's preparations for sending medical aids is a political provocation and that hostile nature of inter-Korean relations and South Korea's identity cannot change.

Crypto

  • Bitcoin has almost pared the losses seen in the early hours of the Asian session and has now regained the USD 83k mark.

US Event Calendar

  • 8:30am: Oct 3 Initial Jobless Claims, est. 200k, prior 197k
  • 8:30am: Sep 26 Continuing Claims, est. 1700k, prior 1701k
  • 10:00am: Aug F Wholesale Inventories MoM, est. 0.7%, prior 0.7%
  • 11:30am: US to sell $110bn 4-week bills and $105bn 8-week bills
  • 1:00pm: US to sell $22bn 30-year bond reopening

Central Bank Speakers

  • 4:30am: Fed’s Waller Speaks on Economic Outlook
  • 10:40am: Fed’s Kashkari Moderates Q&A
  • 1:40pm: Fed’s Musalem Speaks at Bloomberg Event On US Economy, Policy

DB's Jim Reid concludes the overnight wrap

Staying with France, it was again at the epicentre of a global bond market sell-off yesterday. In fact, at one point in the session, the Franco-German 10yr spread was on course for its biggest daily jump since the pandemic turmoil in March 2020, although it partially pulled back by the close to “only” rise +12.3bps on the day. This was around 3bps tighter than the peaks earlier in the session. Elsewhere, the UK’s 10yr gilt yield (+6.8bps) hit a post-2007 high of 5.44% while 10yr Italian yields rose by +9.7bps. US Treasuries did mostly stabilise amid a pullback in oil and a strong 10yr auction, but 30yr yields (+1.3bps) still reached a new post-2002 high of 5.67% and are back up +2.7bps this morning. The renewed stress led to mounting pressure on risk assets too. Indeed, the S&P 500 (-0.22%) slipped back from its record high on Tuesday, whilst France’s CAC 40 (-1.22%) slumped to a fresh six-month low.

Whilst there have been clear short-term catalysts for the recent move, including another round of oil price gains, there’s a long-term fundamental story of how French debt has been on an unsustainable trajectory for many years which Henry and I looked at in our note mentioned at the top with France not running a budget surplus since 1974, with its debt-to-GDP rising almost continuously in that time. One additional interesting graph in the note shows 10yr yields now being comfortably above nominal GDP after being below it for much of the last decade or so. So a worry for debt sustainability. That said, our rates strategists, after being bearish on French debt for many years, now believe it is cheap relative to fundamentals. Something we also highlight. So lots to consider.

In terms of the last 24 hours, it was clear that European contagion risk was back on the agenda, as there was a sharp widening in the spreads of multiple countries. So that marked a change in the mood relative to the last few days, as the financial market stress had generally been easing since last Friday. While there wasn’t a single driver of the renewed sell-off, the investor mood arguably wasn’t helped by comments from Bank of France Governor Moulin, who said that while the situation in France’s bond market was complicated “the conditions are not met today for an intervention from the ECB”. So in the end, the Franco-German 10yr spread (+12.3bps) was back up to 139bps by the close, and the 2yr spread (+9.7bps) also moved back up to 56bps. For now, those spreads are both beneath their peaks from last week, but it again helped push the Italian 10yr spread (+10.0bps) back up to 115bps, whilst Spain’s (+5.1bps) was up to 64bps, the widest in over a year. And it didn’t look much better in absolute terms either, with France’s 10yr yield (+11.8bps) up to 4.86%, in contrast to 10yr bunds (-0.4bps) which fell back slightly to 3.47%.

That bond market stress cascaded across multiple asset classes, with clear pressure across the board. For instance, French banks posted sharp losses again, with Société Générale (-5.01%), BNP Paribas (-3.88%) and Crédit Agricole (-3.45%) all losing significant ground. Moreover, it was another rough day for the Euro itself, which weakened -0.55% against the US Dollar to $1.1197, its lowest since May 2025. And as with last week, the moves led to growing questions about whether the ECB could even carry on hiking rates at all. Indeed, the probability of another ECB hike by December was down to just 85% by the close, which is the most dovish rates profile for 2026 in the last month. In other words, markets are increasingly pricing in a chance that the ECB press pause on the hiking cycle this year.

One of the drivers of the fresh bond selloff in Europe was a move higher in oil prices, which added to concerns given the continent’s dependence on imported energy. That said, this reversed as the session went on, with Brent crude settling around $101/bbl after trading above $102.50 shortly before Europe went home, while WTI (-1.28%) fell to its lowest level since August at $88.28/bbl. However overnight Brent is back up to $102.36 as The Atlantic reported that the White House has asked the Pentagon to draw up options on strikes against Iran prior to midterms. Back to yesterday and concerningly, European natural gas futures (+3.16%) rose to €78.08/MWh, closing back in on their recent high from September, while European diesel prices jumped by +5.96%. So overall there were few signs that the inflationary pressure was diminishing, and the Euro 1yr inflation swap (+9.9bps) was back up to 3.34%.

This backdrop of wider bond spreads and fresh inflation fears meant it was a rough day for risk assets. That was particularly clear in Europe, where the STOXX 600 (-1.00%) fell back after three consecutive gains, and there were even bigger losses for the CAC 40 (-1.22%) and Italy’s FTSE MIB (-2.51%) with European banks (-3.38%) bearing the brunt of the losses. That also carried over to the US, where the S&P 500 (-0.22%) slipped back from its record high the previous day. And while the headline decline moderated as the session went on, there were still signs of stress under the surface, with almost three-quarters of the index lower on the day as cyclical sectors including industrials (-2.14%) and materials (-1.53%) underperformed. And while relative resilience in tech stocks limited the losses for the Nasdaq (-0.22%) and Mag-7 (-0.20%), the small-cap Russell 2000 (-1.31%) sunk to a 4-month low.

As all that was happening, one asset class that did mostly stabilise was US Treasuries. The 10yr yield has been on course to rise to another post-2002 high, trading as high as 5.36% intra-day, but it was little changed on the day (+0.4bps) at 5.28% by the close. The pullback was helped by the retreat in oil prices, as well as a strong 10yr auction that saw $39bn of bonds issued -1.7bps below the pre-sale yield. That said, we did see a fresh milestone for 30yr yields (+1.3bps) which hit a post-2002 high of 5.67%. The rise in yields put fresh pressure on gold prices, reflecting how gold is a non-interest-bearing asset, with prices down -1.27% on the day to a two-month low of $4,111/oz. And as mentioned above, yields are back up 2-3bps from 10-30yrs this morning on the higher oil price.

The minutes of the September FOMC meeting offered more detail on the discussion behind the rate hike decision. “Many participants emphasized” that a higher policy rate path “would be prudent on risk-management grounds”, while others saw a higher path as “necessary based on their modal outlooks”. FOMC participants also noted that underlying momentum in the economy appeared to have increased, while the Fed staff forecasts did not see inflation hitting the 2% target until 2029. Still, with there being nothing to suggest urgency for the next hike, money markets continued to dial back the chances of an October Fed hike, which is now only 17% priced, while exactly 25bps of hikes are priced by December (-0.7bps on the day).

In Asia, the KOSPI (-1.24%) is the weakest main market, and it’s a sign of the times that Samsung reported a 9-fold increase in profits which disappointed some investors. The weakness in tech stocks is also impacting the Nikkei (-0.87%). Chinese markets reopened after the week-long Golden Week holiday on a positive note but have struggled to sustain their early gains with the CSI 300 (-0.43%) and Shanghai Composite (-0.27%) now lower. Elsewhere the Hang Sang (-0.69%) and the ASX (-0.74%) are also lower but with US and European equity futures broadly flat.

Finally, today will see the EU’s Trade Commissioner, Maroš Šefčovič, visit China for talks with Commerce Minister Wang Wentao. Our research colleagues in Frankfurt have written a note on EU-China trade relations and the talks, although they don’t think they’re likely to bring a major breakthrough. This meeting comes ahead of an EU leaders summit next week, where they expect EU leaders to continue their minimalist approach, i.e. mainly relying on established trade defence tools, whilst seeking to avoid a broader trade conflict with China.

Looking at the day ahead now, there are plenty of central bank speakers, including the Fed’s Waller, Kashkari and Musalem, the ECB’s Moulin, Sleijpen, Zigman and Stournaras, BoE Governor Bailey, and the BoE’s Greene, Pill and Lombardelli. We’ll also get the accounts of the ECB’s September meeting. Otherwise, data releases include the US weekly jobless claims.

Tyler Durden Thu, 10/08/2026 - 08:27

Le Pen Seen As Most Credible Presidential Candidate As French Bonds Suffer Worst Decade Since 1803

Zero Hedge -

Le Pen Seen As Most Credible Presidential Candidate As French Bonds Suffer Worst Decade Since 1803

France's politicians seem to be getting a dire warning from the bond market: rein in reckless spending or risk a fiscal crisis as borrowing costs skyrocket. 

UBS strategist Julien Conzano, head of European macro credit strategy in London, sees bond market pressure pushing both the crisis-stricken Macron government and Marine Le Pen's National Rally toward greater fiscal discipline, reducing the risk of an expansionary 2027 budget. 

Deutsche Bank strategists Jim Reid and Henry Allen wrote in a note that French 10-year government bonds have posted their worst rolling decade of nominal returns since 1803, dating back to the Reign of Terror during the French Revolution.

The French welfare state's bill is finally coming due: France's budget deficit is forecast to be 5.4% of GDP this year, well above the EU's 3% ceiling. The country has not balanced its budget since 1974. 

On Tuesday, Le Pen unveiled her shadow budget for next year, should she win the presidential elections in mid-April. In it, she proposed steep deficit cuts. 

Le Pen's plan would shrink the deficit to 3.7% of economic output next year, well below the government's 5% target, before bringing it to 2.2% by 2032. Savings would come largely from spending cuts, lower transfers to the EU and reduced migrant spending.

French 10-year bond yields rose sharply at the beginning of the week towards 5% before sliding to nearly 4.7% after Le Pen's shadow budget reveal on Tuesday. But by the end of the week, the government debt yield rocketed back to nearly 4.96%.

To save France from the brink of what we described as a "triple crisis", which consists of far-left riots, a ticking debt bomb and mass migration all colliding at once, a new Verian survey conducted for local outlet Le Figaro Magazine found that 39% of respondents believe Le Pen has a clear vision to contain the crisis. 

Le Pen's 39% compared with just 27% for center-right rival Edouard Philippe and 18% for far-left candidate Jean-Luc Mélenchon. 

The ongoing social unrest by the far-left, weaponizing young kids who have burned down schools and torched buses, has been the extra fuel to propel Le Pen, as her Polymarket odds of winning the "Next French Presidential Election" have skyrocketed over the last week to 43%. 

A consensus appears to be forming that Le Pen's proposed fiscal discipline to rescue France from the brink of what she describes as a looming default, if the current trajectory continues, is a welcome relief for the market and voters. Nomura analysts described this theme in late August (read report), and they see Europe "lurching" right over the next 18-month election cycle.

Principal Asset Management's Howe Chung Wan noted that one accelerator of France's bond rout was the unwinding of carry positions, which helped drive the selloff and amplified pressure that sent yields soaring.

"You can see this time around in France, it took France and Italy ... but it did not take Spain," Howe said, adding, "So it tells you it's about positioning. It tells you about who is on the trades."

What's happened so far this week:

Le Pen has tailwinds here as the spending bill for the failed progressive experiment and unfettered spending comes due. Nomura is correct: the market no longer fears right-wing candidates; it fears left-wing candidates and unhinged socialists.

Tyler Durden Thu, 10/08/2026 - 08:20

Macron Goes Full Orwell

Zero Hedge -

Macron Goes Full Orwell

Authored by Jonathan Turley via JonathanTurley.org,

French President Emmanuel Macron went full Orwell this week. While long the darling of Western media, Macron has been one of the most anti-free-speech leaders in the world. This week, he declared that "The so-called American 'free speech' today, which some people have promoted, is the opposite of free speech." Having Emmanuel Macron holding forth on free speech is akin to Joey Chestnut proselytizing on veganism.

France has been in a headlong plunge into censorship and speech criminalization. These laws criminalize speech under vague standards referring to "inciting" or "intimidating" others based on race or religion.

For example, fashion designer John Galliano has been found guilty in a French court on charges of making anti-Semitic comments in a Paris bar.

In another case, the father of French conservative presidential candidate Marine Le Pen was fined because he had called people from the Roma minority "smelly." A French teenager was charged for criticizing Islam as a "religion of hate."

Many of us were disgusted recently when Macron celebrated Brigitte Bardot's life as someone who "embodied a life of freedom." As discussed on this blog, the French government repeatedly prosecuted Bardot for speaking about her views.

Macron's praise for Bardot's "life of freedom" is reminiscent of the reaction of French officials to the massacre of editors at Charlie Hebdo, a satirical magazine. After hounding the victims for years with criminal investigations, the French government organized a march for free speech. As predicted, it then used the killing by Islamic extremists to further crack down on free speech.

In my book The Indispensable Right, I discuss how France has careened down the slippery slope of censorship for decades, and the desire to silence others has now become an insatiable appetite.

Macron has supported figures like his anti-free-speech ally Thierry Breton in globalizing the reach of the infamous Digital Services Act (DSA) to curtail speech, including Americans and American companies.

In his latest pitch for censorship, Macron pulls out an old saw that if everyone can speak freely, no one can speak freely.

Macron declared that "There is no freedom if there is no limit to my freedom, which begins with the freedom of others and respect for a common framework. I know this when I walk down the street: my freedom cannot mean hitting you, insulting you or trashing the public space we all share."

That line is remarkably telling. It captures how even "insulting" language is treated as a crime in France.

Since then, France has been a leader in the rollback of free speech in the West, with ever-widening laws curtailing free speech. France regularly charges people for political and religious speech, including comedians and those criticizing the police.

Macron's visceral reaction to free speech is shared by many in the European Union.

I spoke in Berlin at the World Forum, which boasted the slogan, "A New World Order with European Values." Bill and Hillary Clinton and other Americans cheered on the European efforts.

The Digital Services Act bars speech that is viewed as "disinformation" or "incitement." When it was passed over the condemnations of many of us in the free speech community, European Commission Executive Vice President Margrethe Vestager celebrated by declaring that it is "not a slogan anymore - that what is illegal offline should also be seen and dealt with as illegal online. Now it is a real thing. Democracy's back."

Despite his unpopularity in France, Macron remains a favorite of the establishment and the media in the United States. I was appalled years ago when he came to Congress to spread his anti-free speech gospel. Macron called for a joint war against "fake news" and declared, "Democracy is about true choices and rational decisions. The corruption of information is an attempt to corrode the very spirit of our democracies."

Our representatives applauded like seals with little recognition that he was referencing censorship. Macron believes that he should be able to dictate which views are "corrosive" to the spirit of democracy.

The claim that more speech means less speech is an oxymoronic talking point of the anti-free speech movement. As I discussed in my book, there has not been a single censorship system in history that has worked to kill a single idea or movement. Instead, it has given more power to politicians like Macron to silence critics and intimidate opponents.

In the end, the only true solution to bad speech is better speech. The public can sort out their own values and weigh opposing views without the strict guidance of the government. Free speech serves as its own disinfectant.

Ultimately, allowing people not just free inquiry but free expression bends the arch of humanity toward truth. Hate and prejudice are inherently flawed values that tend to collapse when exposed to full, robust debate.

That does not mean that it will eliminate racism, sexism, or other forms of hate. Neither censorship nor free speech can make everyone better people. However, what Macron is peddling is the same tired, dishonest claim that free speech is harmful and the government must control what people see and say in public discourse.

This is a nation that still echoes the cry of Liberty, Equality, and Fraternity ("liberté, égalité, fraternité"). However, in today's France, "liberté" remains a declining value. Individual rights of religion and speech are routinely sacrificed in the name of "equity" and "fraternity."

Jonathan Turley is a law professor and the New York Times best-selling author of "Rage and the Republic: The Unfinished Story of the American Revolution."

Tyler Durden Thu, 10/08/2026 - 05:00

Ebola Patient Dies As Disease Spreads To Kenya

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Ebola Patient Dies As Disease Spreads To Kenya

A Kenyan man who had lived in Congo for seven years tested positive for Ebola caused by the Bundibugyo virus, Kenyan authorities said on Oct. 6. He traveled by vehicle to Kampala, Uganda, flew into Nairobi on Saturday, was isolated at a city hospital on arrival, and died Monday, the first Ebola death in Kenya's history.

Kenyan Secretary of Health Aden Duale briefs reporters on an Ebola case identified in Kenya, after the patient died, in Nairobi, Kenya, on Oct. 6, 2026. Simon Maina/AFP via Getty Images

Twenty-eight people, including relatives and healthcare workers, had contact with him before his death, Health Minister Aden Duale said, and another 27 flew on the same plane. Contacts will be isolated for 21 days, the length of Ebola's incubation window.

As the Epoch Times notes further, Kenyan officials said they already had heightened screening in place for incoming flights from Congo and asked travelers to be truthful when answering questions during the screening so any additional cases can be identified and treated quickly.

More than 650,000 people entering the country have been screened so far, according to Duale.

Of the 267 samples tested thus far, only one test, from the man who died, returned positive.

Officials said they're working with the World Health Organization, the Africa Centers for Disease Control and Prevention, and other entities. They said the situation is under control.

"I wish to reassure the public not to panic, as all systems are in place to mitigate the spread of the disease," Duale said in a statement.

People should frequently wash their hands and avoid close contact with sick individuals who have recently come from any countries where Ebola is actively transmitting, he added.

People who experience symptoms should go to a medical facility for treatment, and healthcare workers should be vigilant and maintain procedures aimed at preventing infection.

An outbreak caused by the Bundibugyo virus has been ongoing in Congo for months. In their last update, authorities there reported 8,544 cumulative confirmed cases, 824 patients currently hospitalized, and 4,114 deaths.

It's the second-largest Ebola outbreak in world history.

Historically, outbreaks caused by the Bundibugyo virus kill 30 to 40 percent of confirmed patients, according to the U.S. Centers for Disease Control and Prevention.

The outbreak has mostly been contained in Congo, apart from previous cases in Uganda and a handful of patients who flew to European countries. Uganda discharged its last Ebola patient in July.

Tyler Durden Thu, 10/08/2026 - 04:15

Spain's Government Revives Rent Cap Decrees Ahead Of Snap Election

Zero Hedge -

Spain's Government Revives Rent Cap Decrees Ahead Of Snap Election

Authored by Owen Evans via The Epoch Times,

Spain's Socialist-led government on Tuesday reapproved two housing decree laws that Parliament rejected last week, a defeat that prompted Prime Minister Pedro Sánchez to dissolve the country's Legislature and call a snap election.

Spanish Prime Minister Pedro Sánchez, who is also a leader of the ruling Socialist Party, holds a news conference after a meeting at the party's headquarters in Madrid, on June 16, 2025. Nacho Doce/Reuters

The measures include rent caps, a temporary ban on evictions, and limits on corporate purchases of residential property, moves that followed protests triggered by the forced removal of an 87-year-old woman from her home.

Sánchez, the head of Spain's main socialist party, said on Monday he was bringing forward an election on Nov. 29 previously scheduled for 2027.

"We need to mobilise and win a much larger progressive majority in parliament, one that will allow us to overcome vested interests, deliver new social advances and continue transforming Spain," Sánchez said in a televised address.

By calling the election, Sánchez shifted approval of the new rules from the full Congress to a smaller caretaker body where his allies hold a narrow majority.

The measures will come into effect temporarily when the decree is published in the official government journal, the Boletín Oficial del Estado, but must then be sent for approval by the caretaker lawmakers who remain in place after Parliament is dissolved, Sánchez said.

Spain's government approved two decrees on Sept. 29 to pause evictions from investment-fund-owned properties until 2030. The measures also included rules for small landlords, allowing tenants whose leases expire before the end of 2028 to stay for up to two additional years and capping rent increases at 2 percent through 2027.

The decrees failed after lawmakers from Catalan separatist party Junts, which was supporting the left-wing government, joined the opposition in voting it down, arguing that the proposals would reduce housing supply.

Junts parliamentary spokesperson Miriam Nogueras said the decrees would have the opposite effect of their stated aims.

"Finding housing will become more difficult every day. Our responsibility is to provide certainty, not uncertainty," she said.

The opposition People's Party also voted against the measures.

"Housing doesn't become more affordable through decrees; it becomes more affordable by building more homes," said PP lawmaker Juan Bravo. "We're not going to lie to you - it's not going to be easy, and it's not going to happen quickly."

Pedro's government has reissued decrees that largely maintain the substance of the measures rejected by Parliament.

It also includes value-added tax on tourist flats, tax deductions for tenants, tax incentives for landlords who lower rents, help for first-time homebuyers, protections for the state housing stock, and a reduction in value-added tax on protected housing.

The interventionist measures will only serve to drive away the investment needed to increase supply, said Carolina Roca, president of the Association of Property Developers of Madrid.

"The legal uncertainty inherent in both decrees will result in a sharp slowdown in the limited investment secured to date in the construction of affordable housing," she said.

The attempted eviction of 87-year-old Maricarmen Abascal in Madrid triggered nationwide protests.

Police evicted Abascal on Sept. 23 from her Madrid home of more than seven decades. The apartment in the capital's affluent Retiro neighborhood was bought by investment fund Urbagestion, which sought a significant rent increase that Abascal could not afford.

"I've lived here for 71 years, and I don't want to leave," Abascal told reporters on the eve of the eviction.

Abascal's lawyer told the BBC on Sept. 30 that she can now return to the property.

Beatriz Duro said at a press conference there had been "goodwill from both parties" and that she would pay a similar amount of rent under a new contract and not pay the increased amount.

On Sept. 23, Bank of Spain Deputy Gov. Soledad Núñez said that since 2021, an estimated shortfall of about 755,000 homes has built up, and that the gap could widen by another 300,000 between 2026 and 2028.

Reuters contributed to this report.

Tyler Durden Thu, 10/08/2026 - 03:30

Germany's Political Firewall Against The AfD Party Is Crumbling

Zero Hedge -

Germany's Political Firewall Against The AfD Party Is Crumbling

Authored by Remix News Staff via Remix,

After yesterday's vote in the Saxony-Anhalt Landtag, the Alternative for Germany (AfD) now holds the office of state parliament president for the first time in any German state. After winning the role, which is similar to a speaker position, 35-year-old Tobias Rausch sent shockwaves through the German political establishment when he confirmed he won with the support of Christian Democratic Union (CDU) votes. The backing of four CDU lawmakers could be one of the most concrete signs that the political firewall against the AfD is crumbling.

The newly elected president of Saxony-Anhalt's state parliament said Wednesday that members of the conservative CDU voted for him. Perhaps even more importantly, he said that four CDU lawmakers have agreed to back the AfD's candidate for state premier in December, which means Ulrich Siegmund could soon be the first AfD politician leading a state government.

Rausch gave a direct "yes" when Nius editor-in-chief Julian Reichelt asked on "Nius Live" whether CDU deputies had helped elect him. Asked whether Tuesday's result signaled that AfD candidate Ulrich Siegmund would safely take office as minister-president in December, Rausch replied, "That is to be assumed."

He told the German press agency dpa that there were agreements with four CDU members of parliament for Siegmund's election.

He added that more might become clear at a CDU state party conference on Dec. 5, but declined to elaborate. Acting state premier and CDU floor leader Sven Schulze did not comment on the claims when asked by dpa.

Rausch was elected Tuesday in the constitutive session of the 83-seat Landtag in Magdeburg with 48 votes, 29 against and five abstentions. It was the first time the AfD, parts of which are classified as extremist by German domestic intelligence, has held the presidency of a state parliament since the party was founded in 2013.

The AfD holds 39 seats after winning 43.8% of the vote in the Sept. 6 state election, three short of a majority. The five lawmakers of the Sahra Wagenknecht Alliance had said in advance they would support Rausch, accounting for 44 votes. The additional four came in a secret ballot. SPD, Green and Left lawmakers had said they would vote no. The CDU leadership had recommended that its members abstain; 14 of the party's 15 deputies were present, but only five abstentions were recorded in the chamber.

The speaker chairs sessions, oversees the parliamentary administration and represents the Landtag externally, including at ceremonial events. However, the far more consequential vote is expected in December, when lawmakers choose a minister-president. Siegmund needs at least 42 votes, and so far, the BSW has not committed to supporting him for that post.

Meanwhile, Schulze of the CDU remains acting premier until a successor is chosen.

Later Tuesday, AfD lawmaker Hans-Thomas Tillschneider was elected a vice president with 44 votes to 38, even though the BSW said its members would not support him because of statements he had made on armaments policy.

CDU lawmaker Carsten Borchert was chosen as another deputy president with 64 votes in favor and 17 against. SPD candidate Armin Willingmann received 33 votes and failed.

AfD national co-leaders Alice Weidel and Tino Chrupalla congratulated the party and described the result as an end to the "firewall" that mainstream parties have maintained against cooperation with the AfD. However, the national CDU is not happy about the outcome in Saxony-Anhalt. CDU/CSU parliamentary group chairman Thorsten Frei said, "The fact that this is the case is, in my view, extremely concerning and worrying."

Tyler Durden Thu, 10/08/2026 - 02:00

Porsche Plans 20% Price Hike On Top-End 911s In Profit Push

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Porsche Plans 20% Price Hike On Top-End 911s In Profit Push

During Capital Markets Day in Weissach, new Porsche CEO Michael Leiters offered Wall Street desks a bleak outlook, warning that the turnaround will take time and that operating conditions are unlikely to improve significantly over the next few years.

Leiters signaled to investors a shift toward value over volume. He said the focus is now on prioritizing higher revenue per vehicle and reducing dependence on China.

One such strategy, as Bloomberg reports, is for Porsche to raise average prices for its top-of-the-line sports cars by 20% and introduce a new model above the 911 as it seeks to recover after its disastrous entry into the electric vehicle space.

Sharp depreciation in used Porsche Taycans highlights the challenge of maintaining resale values for high-end EVs. 

A recent Goldman report points to a similar divergence at Ferrari, where collectors favor V8 and V12 combustion-engine models while hybrids face pressure in the secondary market (read report).

Average prices for Porsche's top-end models are expected to exceed €330,000 ($370,134) by the end of the decade, up from about €270,000 this year.

"The top priority is to further strengthen our unique sports-car brand across the entire lineup, with new, desirable models in particularly high-margin segments," Leiters told investors in Stuttgart earlier today.

Leiters outlined new regional plans, emphasizing drivetrain flexibility in Europe and stronger competitiveness in North America through combustion-engine and hybrid models.

Leiters also outlined plans for a new mid-engine vehicle model above the 911 that would return the struggling German automaker to the supercar segment for the first time since the limited-production 918 Spyder debuted in 2013.

Porsche shares in Germany are flat on Wednesday morning. Shares remain down 64% since the peak of 120 euros in early 2023.

The Volkswagen subsidiary is targeting an operating margin of 10% to 15% over the medium term and 15% over the longer term, goals that hinge on a successful turnaround. Profitability tumbled to just 1.1% last year as restructuring costs, tariffs and soft demand weighed on earnings, before recovering to 7.8% in the first half of this year.

Volkswagen is also under severe pressure, shrinking its industrial footprint with a massive planned cut of 100,000 jobs, mostly in Germany, while Mercedes-Benz and BMW are also seeking turnaround plans.

The planned price hikes could support secondary-market values for high-end 911s by raising replacement costs and making existing models more attractive to buyers. 

Tyler Durden Wed, 10/07/2026 - 19:40

Arizona Democratic House Candidate Raped While Repairing Campaign Signs: Report

Zero Hedge -

Arizona Democratic House Candidate Raped While Repairing Campaign Signs: Report

Democratic congressional candidate Bernadette Greene-Placentia says she was sexually assaulted in mid-August while repairing a campaign sign late at night in the Sun City area, according to a Phoenix New Times report published October 7. The Maricopa County Sheriff's Office has confirmed it received a report on August 31 and that the investigation remains open.

Democratic congressional candidate Bernadette Greene-Placentia participates in the 2026 AZ Clean Elections debate for the 8th Congressional District at Sneaky Big Studios in Scottsdale on Aug. 27, 2026.
Diannie Chavez

Greene-Placentia is the Democratic nominee for Arizona's 8th Congressional District and is challenging Republican Rep. Abe Hamadeh in the November 3 general election. The district covers parts of the northwest Valley, including areas of Glendale, Peoria, Surprise, Sun City, and Anthem. She is a longtime long-haul trucker and small-business owner who won the Democratic primary in July.

According to the New Times account, which draws on her interview, a police report, and conversations with family members, campaign staff, and others close to her, the incident occurred just after 2 a.m. on a Friday near 99th Avenue and Bell Road. She told the paper she had been making late-night stops to fix damaged signs throughout the summer. She said her recollection of the event is fragmentary. She informed campaign staff the following Sunday and her husband the next day, then contacted the sheriff's office more than two weeks later. Associates described her as withdrawn in the days afterward. A sheriff's office spokesman has declined further comment while the case is active. No arrests have been announced.

Greene-Placentia has said she initially hesitated to report the assault because she was embarrassed, but later chose to speak publicly. The Phoenix New Times story is available here.

Arizona Sen. Ruben Gallego posted the following in response: 

Additional coverage of the Phoenix New Times report has appeared from outlets including Newsweek and The Independent, which also cited confirmation from the sheriff's office that a report was filed August 31 and remains under investigation.

* * *

    OCTOBER ONLY.$10 OFFYOUR NEXT ORDER.$30 min. Ends Oct 31. One per customer.GET MY $10 OFF →Signs you up for ZeroHedge Store emails. Can't be combined. Every order helps support ZeroHedge. Tyler Durden Wed, 10/07/2026 - 19:15

China Says It Can Spot An F-35 With A Laser... From 38 Miles, At Night, In A Simulation

Zero Hedge -

China Says It Can Spot An F-35 With A Laser... From 38 Miles, At Night, In A Simulation

Every few months, a Chinese research institute announces it has found a way to see the unseeable F-35, and every few months the fine print turns out to be doing most of the work. This week's entry: a laser.

According to the South China Morning Post, researchers at the China Airborne Missile Academy, the PLA Air Force's main air-to-air missile house, have modeled a missile-borne single-photon lidar that could detect and track an F-35 stealth fighter at up to 61.5km (38 miles). The paper, led by Li Zhiyuan, was published in the peer-reviewed Chinese journal Aero Weaponry on September 18.

Before the "F-35 is obsolete" crowd starts celebrating, three qualifiers: that range is (1) at night, (2) "under ideal conditions" and (3) a simulation. During the day it drops to 27.7km. And as SCMP itself concedes, "the study does not establish that the system has been built, flight-tested or integrated into an operational missile."

(Some readers may notice the SCMP's own URL advertises "615km"; we regret to inform them the decimal point exists, and it matters.)

Radar Can't See It? Try Counting Photons

The pitch is simple enough. Stealth jets are shaped and coated to defeat radar, and their engines are managed to reduce infrared signatures. A laser, the Chinese team argues, is a blind spot: they chose the 1,064-nanometre wavelength because stealth aircraft have "fewer dedicated countermeasures against active laser detection than against conventional radar and infrared sensing."

Unlike radar, single-photon lidar fires laser pulses and listens for the handful of photons bouncing back. Per the SCMP summary, the model of the F-35C:

  • used low-power 1.0 millijoule pulses and a compact 100mm lens, sized for a missile's nose;
  • corrected for detector "dead time" and for noise from sky background, atmospheric backscatter and dark counts;
  • needed a signal-to-noise ratio of 8.8 decibels, i.e. at least 9.4 returning photons, to lock on;
  • at 27.7km, resolved the target to within 20cm in depth and 50cm transversely.

In other words, a Chinese missile would, in theory, be able to tell it's chasing an F-35 rather than a seagull by catching about ten photons. Impressive physics. Whether it survives contact with clouds, rain, a maneuvering target and a seeker strapped to a missile moving at several times the speed of sound is another matter, and one the paper doesn't claim to address.

"I Don't Understand It, Technically"

The skeptics didn't need much prompting. A military analyst who asked SCMP not to be named pointed to the obvious problem with any laser: it's a pencil, not a floodlight.

"The laser beam is so narrow, it probably couldn't serve as an early-warning radar; in the early stages, it's just a rangefinder." (emphasis ours)

Translation: you have to already know roughly where the F-35 is before you can find it with this, which is precisely the problem stealth is designed to create. Another expert familiar with military equipment was even more succinct: "I don't understand it, technically." We appreciate the candor, rarely seen in defense punditry.

Then there's the range math, which SCMP helpfully spells out. The F-35's short-range AIM-9X Sidewinder reaches about 16-32km, so a 61.5km lidar would outrange it. But the jet's long-range air-to-air missiles "can strike targets past 160km", which is more than twice the lidar's best-case night range and nearly six times its daytime reach. Put differently, by the time the laser sees the F-35, the F-35 may have already seen, and shot, the launch platform.  

The chart also puts this week's headline in context: it's not even China's most ambitious F-35 detection claim. In early 2025 researchers at the Changchun Institute of Optics, Fine Mechanics and Physics (CIOMP) simulated a stratospheric airship infrared sensor that could spot an F-35 from 1,800km from behind or the side (about 350km head-on). The common thread: the bigger the number, the more theoretical the system.

The Inconvenient Data Point: Iran Already Hit One

None of this means the F-35 is invulnerable, and the most damaging real-world evidence didn't come from a Chinese lab. On March 19, an F-35A on a combat mission over Iran was forced into an emergency landing after taking Iranian fire, as we flagged in real time:

Days later we reported that the pilot suffered shrapnel wounds, with Air & Space Forces Magazine concluding the jet was "most likely damaged by a surface-to-air missile." The IRGC's own footage was shot through an infrared (FLIR) system, and Chinese analysts have spent the months since arguing that passive infrared, not exotic new radars, is the stealth jet's soft underbelly. The PLA even ran a live-fire drill in August pairing heat-seeking MANPADS with HQ-16 missiles against stealth target drones.

Which is the point: Iran didn't need a photon-counting laser. It needed a heat-seeker, the right geometry and some luck.

The flip side is equally instructive. When US forces went into Caracas in January, the Chinese-built "anti-stealth" radars Venezuela had bought to deter exactly that kind of raid failed to mount an effective response (Jan 8), with no US aircraft lost. Marketing brochures, meet combat.

Why Bother With Lasers When The Parts Come To You?

The lidar paper lands as Beijing has a more direct route to F-35 secrets. Last month, F-35 components shipped from Australia to the US were diverted to Hong Kong, where Chinese authorities have taken possession of them:

Senate Intelligence chair Tom Cotton has since demanded a supply-chain security review (Oct 1), warning that "we can't afford for U.S. military equipment to fall into the hands of a foreign adversary because of vulnerabilities in commercial transportation." It's hard to think of a cheaper counter-stealth program than FedEx with a detour.

Meanwhile, China's own sixth-gen programs keep moving. Shenyang's designers recently laid out a "leapfrog" roadmap (Sep 16) for the J-50, and the J-36 and J-50 prototypes are taking shape (Sep 18). SCMP notes Shenyang has mentioned laser weapons in its design drawings for both, and the 303 Research Institute recently showed an airborne laser weapon pod in Beijing. Lasers are clearly where the PLA wants to go, for seeing and eventually shooting.

The F-35 Has Bigger Problems Than Lasers

For investors, the lidar paper changes nothing in Lockheed Martin's near term; the bigger swing factor is Washington. As Capital Alpha's Byron Callan noted in his "Defense Look Ahead: Air Force Factors" note (available to pro subs), a key question is "what's Air Force thinking on the F-35A if Congress does not pass the $350 billion in mandatory funding, which includes 38 F-35As?" Export demand, on the other hand, is hardly suffering: the US just approved a possible F-35 sale to Saudi Arabia of up to $24.3 billion, and Israel promptly asked for "compensation".

And then there's the bill, which no Chinese laser can match for lethality:

Bottom Line

Li and his team say the next step is "optimising photon-related parameters" and developing more accurate ways to find stealth targets with missile-borne lidar. Fair enough: today's simulation is tomorrow's seeker head, and nobody should dismiss China's pace in sensors.

But on the evidence so far, we side with the skeptics. A narrow-beam laser that works best at night, needs to be pointed in roughly the right direction and tops out well inside the F-35's own missile envelope is a terminal-guidance aid at best, not a stealth killer. The real threats to the F-35 are the boring ones: passive infrared (as Iran showed in March), leaky supply chains (as Hong Kong showed last month) and a sustainment bill heading for the trillions. We warned back in 2021 that the jet was at risk of falling behind Chinese and Russian defenses (Sep 16, 2021); that risk is real, but it's arriving through heat signatures and cargo manifests, not photon counts. Then again, if the lidar ever does work, at least it'll be cheaper than the jet it's chasing.

Much more in the full Capital Alpha "Defense Look Ahead: Air Force Factors" note, available to pro subs.

Tyler Durden Wed, 10/07/2026 - 18:58

More Ukrainian-Style One-Way Attack Drones Seized In Mexico

Zero Hedge -

More Ukrainian-Style One-Way Attack Drones Seized In Mexico

The emergence of fiber-optic one-way attack drones among Mexican cartels signals a troubling security threat just south of the US border.

Images published by local outlet Luz Noticias show that the Mexican Army seized Category 1 suicide drones with fiber-optic cable reels and improvised explosives. This is sparking ongoing concerns that low-cost attack drones associated with the Ukraine-Russia war and the US-Iran conflict are spreading to narco-terrorists in the Western Hemisphere.

Mexican troops found 15 drones and more than 40 improvised explosive devices in the municipality of El Rosario during security patrols on Monday. The municipality is situated in southern Sinaloa.

Here's what the outlet said:

During the inspection , Mexican Army personnel located and seized drones , drone controllers , fiber optic cables, batteries, improvised explosive devices , chargers, cartridges, long guns , tactical vests, and ballistic plates.

The three long guns seized are AK-47 rifles , better known as Goat Horns , which were allegedly used for clashes between organized crime factions.

The latest development builds on our mid-July note that Ukrainian-style drones were found in a raid deep inside north-central Mexico.

Reuters cited US Army Brigadier General Brian Filler, deputy commander for operations at Joint Task Force Southern Border, who told reporters Monday that the military had detected 378 drone incursions in the last 30 days and that the trend was increasing.

"We are seeing largely commercial off-the-shelf available drones," Filler said, adding that most carry surveillance cameras and are often observed alongside cross-border movements.

The US urgently needs low-cost counter-UAS assets to protect military bases, government buildings, stadiums, critical infrastructure, and data centers. The list is really endless.

Tyler Durden Wed, 10/07/2026 - 16:40

NY Times Suggests Babies Are Not Conscious

Zero Hedge -

NY Times Suggests Babies Are Not Conscious

Authored by Steve Watson via Modernity News,

The New York Times has decided the open question in science this week is whether a baby is conscious. Not a cluster of cells. Not a theoretical model. An actual newborn baby.

Carl Zimmer's 5 October piece, "Are Babies Conscious?" (yes that's a real headline) walks readers through a lab test and then informs them that a "squirming, gurgling infant" does not seem conscious, "at least not in the way adults are."

Zimmer's setup is the oddball-sound test. A subject hears three low tones and a high one, over and over, then a run of four low tones. Adult brains throw a brief, distinctive blip at the break. People in a coma do not. People who are asleep do not. The Times then puts a newborn in the same frame and asks whether the blip will be there.

The paper calls it an active scientific debate. Dr Topun Austin, a neonatologist at the University of Cambridge, is quoted defining the thing under study: "Consciousness is a process of being receptive to the outside world and mixing that with our own internal world, to create the feeling of who we are and where we are."

A caption under the piece states that there was a time when our brains were too rudimentary to support consciousness. Zimmer's own promo line said he had found scientists "on a mission to find out when consciousness begins in babies."

The reaction online was immediate, and it was not about neuroscience. It was about where the line moves next.

All this is going on while we're debating whether 'machines can be conscious', a disturbing irony.

Of course, there are countless studies that indicate infants, even unborn infants have consciousness as we understand it.

In January, neonatologist Carlo Bellieni of the University of Siena published "A Rudimentary Consciousness Appears in the Late Fetal Period" in EC Gynaecology, reviewing 31 clinical trials from the last decade on fetal anatomy, perception and memory. His conclusion: the early appearance of memory is a sign of rudimental consciousness, and it does not depend on whether the fetus is inside or outside the womb, only on the grade of brain development.

Bellieni's account of the hardware is specific. "Intrauterine life includes structures which, at least partially, replace the developing cortex, that the fetus begins to form around 20 weeks of gestation. These structures are the subplate, useful for most sensations, and the thalamus for pain. ... We can realistically say that the first sensations are perceived by mid-pregnancy."

Fetuses in the trials preferred carrot-flavoured amniotic fluid to kale, responded more to face-like patterns, and touched the uterine wall longer when the mother touched from outside. Magnetoencephalography work found fetuses at 35 weeks and older detecting breaks in tone patterns. The old claim of continuous fetal sedation does not survive the blood chemistry or the sleep-wake cycling.

That sits on earlier research. In 2023, Tim Bayne, Joel Frohlich, Lorina Naci and colleagues published "Consciousness in the cradle" in Trends in Cognitive Sciences. Bayne put the split plainly: researchers disagree on whether consciousness arises early, at birth or shortly after, or late, by one year or much later. "Nearly everyone who has held a newborn infant has wondered what, if anything, it is like to be a baby."

The review's own reading of network connectivity, attention, multimodal integration and cortical responses to global oddballs was that consciousness is likely in place in early infancy and may begin before birth. Naci, who leads Trinity College Dublin's Consciousness and Cognition Group, said newborns can integrate sensory and developing cognitive responses "into coherent conscious experiences to understand the actions of others and plan their own responses."

A 2025 Science report on the Infant Consciousness Conference at NYU recorded the same shift. Bioethicist Claudia Passos-Ferreira, who co-organised it, said fetal consciousness would have been a less central topic at a meeting like that a few years earlier. Preliminary survey results from the room: 47 percent placed the first development of consciousness in the later prenatal window, from about 24 weeks to birth.

A 2026 survey in Neuroscience of Consciousness, of attendees at two leading conferences, found a majority favouring the view that newborns are conscious, and a plurality favouring emergence after 24 weeks of gestation.

In June, New Scientist reported that the fetal connectome already shares 61 percent of the functional organisation of an adult brain. Bayne's line there: "There certainly could be snippets of experience before birth, and the capacity for consciousness is probably there."

None of this is a claim that a six-week embryo writes poetry. It is a claim that the "are they even aware?" framing, applied to born infants and late-term fetuses, is behind the data the same research community has been publishing.

The same day the Times asked whether babies are conscious, LifeNews republished a shocking case that makes the question obscene. A boy at 21 to 22 weeks, about half a pound and the size of a hand, survived an abortion at Christ Hospital in Illinois and lived for 45 minutes. The baby was taken to a soiled utility room because his parents wanted nothing to do with him. There was no care. No intervention.

Nurse Jill Stanek later told a U.S. Senate committee she could not leave him to die alone. "I could not bear the thought of this suffering child dying alone, so I rocked him for the 45 minutes that he lived." He was old enough to gasp for air. He was not old enough, under the logic now being laundered by the New York Times, to count as a human being.

State health figures cited around the same reporting put at least 40 babies born alive after botched abortions in Minnesota, Arizona and Florida between 2016 and 2018, and CDC data at least 143 between 2003 and 2014.

In August, Massachusetts legalised abortion up to birth, and the applause came from the same political class that treats viability as a clerical error.

In March, the UK House of Lords rammed Clause 208 of the Crime and Policing Bill through and decriminalised self-induced abortion at any stage. A YouGov survey found 1 percent support for abortion up to birth. A Whitestone Insight poll found 62 percent saying abortion should remain illegal after 24 weeks, and 53 percent saying it should not be an option if the baby could survive outside the womb. GB News put the gap in one line: "Just 1% of the public agree with this... and yet it has now made it into law."

A country that will arrest someone for silent prayer outside a clinic has arranged the law so that healthy, fully grown babies can be killed without a criminal consequence for the woman.

In March of 2025 the Trump administration moved to cut federal money to Planned Parenthood, which took an average of $592 million a year from taxpayers between 2019 and 2021, more than 40 percent of revenue, while performing 1.11 million abortions in that window.

Anyone who has held their own newborn, or any newborn for that matter, and witnessed the child's curious glare, the tight grip of their hand, and felt the intense emotional connection knows that babies are conscious. The New York Times deciding to ask whether they are or not does not make it a real debate.

We publish a variety of perspectives. Nothing written here is to be construed as representing the views of ZeroHedge.

Tyler Durden Wed, 10/07/2026 - 16:20

Forget The Plague, CDC Reports Recent Surge In Deadly Brain Fungus Cases

Zero Hedge -

Forget The Plague, CDC Reports Recent Surge In Deadly Brain Fungus Cases

Authored by Jack Phillips via The Epoch Times,

The U.S. Centers for Disease Control and Prevention has said in a recent report that healthcare officials and providers should be aware of a rare but deadly fungal infection that can affect the brain and has seen a surge in recent years.

Joel and 'neurodivergent Ellie' from The Last of Us, where a not-so rare and very deadly fungal infection wipes out most of the planet...

Published on Oct. 2, the agency's Morbidity and Mortality Weekly Report called for greater surveillance of Cladophialophora bantiana, which U.S. officials have said is known to cause brain abscesses.

According to the report, the infection is linked to a 60 to 70 percent fatality rate. However, CDC researchers said in the report that national surveillance efforts currently don't exist, and that the fungus's "environmental reservoir" as well as the "route of infection" is not completely known.

Between January 2009 and July 2026, there have been 48 confirmed cases and one possible case of Cladophialophora bantiana found in samples obtained primarily from central nervous system tissue, the CDC said.

But from 2023 to 2025, "detections of the fungus increased approximately fourfold," according to the CDC report.

Researchers said that it's not clear why there has been an increase in recent years but stressed that more research into its risk factors "and potentially evolving virulence are warranted."

In patients with a brain abscess, healthcare providers should now consider whether it's due to a fungus, the report said, adding that infected people will require prompt antifungal therapy and possible surgery.

"Surgical excision might improve patient outcomes," it said. Meanwhile, "patients with infection require prompt antifungal therapy, and surgical excision might improve patient outcomes," it added.

Led by Joshua Lieberman of the University of Washington School of Medicine in Seattle, the researchers added that the presumed route of infection is inhalation of the fungus or direct inoculation following a skin injury.

The fungus "is a rare but important cause of brain abscess in both healthy and immunosuppressed people," Lieberman told MedPage Today in an interview published on Oct. 5, adding that the reason it goes to the brain is "a little bit of a mystery."

What is worrying about the infection, he added, is that "people who have apparently healthy immune systems get the infection and are also at high risk of death."

"It's alarming that it occurs outside of those typical high-risk populations who have pretty profound immunosuppression," Lieberman stated.

The median age of those who contracted the infection was 68 years, according to the CDC report.

Cases have been found in 21 states across the United States, as well as the District of Columbia, the CDC report said. California had the most, with six cases, while Florida and Texas each reported five, and Pennsylvania confirmed four.

Aside from Cladophialophora bantiana, the CDC has also issued reports about a drug-resistant type of fungus known as Candida auris, which is a yeast that is known to spread in healthcare settings.

The Last Of Us Joel and Ellie action figures (not dolls, shut up) Tyler Durden Wed, 10/07/2026 - 15:10

Trump Wants To Build A New Camp David In The Most Trump Place Possible

Zero Hedge -

Trump Wants To Build A New Camp David In The Most Trump Place Possible

President Donald Trump wants to turn part of his own Florida golf course into a new presidential retreat modeled after Camp David, an unusual proposal that would further blur the line between the presidency and Trump's sprawling private business empire.

The plan calls for a portion of Trump International Golf Club in West Palm Beach to become an official presidential retreat where future commanders-in-chief could vacation, conduct diplomacy and host foreign leaders, the Washington Post reports.

Under the proposal, the federal government would receive land for the presidential compound, while the remainder of the property would continue operating as a private Trump golf club.

Trump would personally cover the cost of constructing the presidential residence and related facilities, according to Harvey Oyer, an attorney representing the club. The facility would be developed in coordination with the General Services Administration and Secret Service.

"This is a gift that the president would like to share with his successors, the people of America, and his fellow Palm Beach County residents," Oyer wrote in a letter to county officials obtained by The Post.

Future presidents would reportedly receive complimentary memberships to Trump's club and could use the new compound to host foreign leaders and international summits, according to the plan.

An unnamed White House official defended the location to The Post, pointing to its proximity to the airport, lack of nearby high-rise buildings and homes, security advantages and access to law enforcement.

"The property is minutes away from the Donald J. Trump International Airport, does not have buildings looming, does not have houses along the course, has great security features, is close to law enforcement, and happens to be a highly-rated golf course. These are features that are necessary for any presidential retreat," the official said.

Oyer suggested the project could eventually become an internationally recognized symbol of the American presidency.

"Just as Camp David, Windsor Castle, or the Élysée Palace are known worldwide, so too will the Presidential Golf Course in Palm Beach County," he reportedly wrote.

However, the proposal has some hurdles.

Palm Beach County owns the land underneath the golf course, meaning local officials would have to play a role in making Trump's vision a reality.

County Administrator Joseph Abruzzo told The Post that officials are taking the proposal seriously and communicating with the federal government as they examine a potential parcel.

*** OUR WAREHOUSE FOUND A BOX OF 50 ALMOST EXPIRED PEAK FOCUS ***

Tyler Durden Wed, 10/07/2026 - 14:55

Iraq Formally Requests Syria Act As 'Hormuz Bypass' Route For Its Crude

Zero Hedge -

Iraq Formally Requests Syria Act As 'Hormuz Bypass' Route For Its Crude

Syria's geography has long given the country huge economic opportunities as a major energy transfer hub connecting Middle East states to the Mediterranean.

But as the last decade plus of proxy war which resulted in the overthrow of Bashar al-Assad demonstrated, Syria has also long been target of foreign machinations bent on seeing a puppet state installed in Damascus. The US-Gulf allies broadly waged war against the so-called 'Shia crescent' represented in the old Baghdad-Damascus-Hezbollah axis.

Henry Kissinger famously stated of its opportunity-rich geography, "you can't make war in the Middle East without Egypt and you can't make peace without Syria." The historiographical term Pax Syriana also captures this concept: as goes Syria, so goes the whole region.

Prior file image: Long convoys of Iraqi diesel-laden tanker trucks line up along the Tartus-Baniyas highway, via AFP.

Of course, the external powers which have long sought to dominate the region both politically and on the energy front know this full well, which makes it all the more shameful and ironic that mainstream media and government officials had long derided as 'conspiracy theorists' anyone who connected a 'pipeline wars' theme with Washington's covert war on Syria.

Widespread derision was the reaction of MSM punditry when back in 2016 Robert F. Kennedy Jr. penned the following excellent lengthy investigation:

Why the Arabs Don’t Want Us in Syria They don’t hate ‘our freedoms.’ They hate that we’ve betrayed our ideals in their own countries—for oil

Fast-forward to 2026, amid Trump's Iran war and the Strait of Hormuz crisis, and another conspiracy theory becomes conspiracy fact (as we've been documenting of the great crude transit 'rewiring' efforts to erode Iran's leverage over the Hormuz passage).

On Wednesday, cue a new Bloomberg headline: Syria Set to Emerge as Hormuz-Bypass Option for Iraq's Crude Oil.

The deserts of Western Iraq and Eastern Syria are set to look like a scene out of Max Max, apparently. "Syria is set to provide a route for Iraqi crude exports to avoid the hazardous Strait of Hormuz, with a stream of trucks being lined up to haul oil overland to a port on the Mediterranean Sea," Bloomberg writes.

"The Iraqi government asked Syria to help with the export of crude in addition to existing flows of fuel oil, Yousef Qiblawy, chief executive officer of the state-owned Syrian Petroleum Co., said in an interview with Bloomberg News," the report continues.

To some degree, this overland route was already being 'tested' during the latter years of the Syrian proxy war, when US forces occupied Syria's oil and gas fields of Deir Ezzor and Al-Hasaka regions.

Reviving land corridors from Iraq to the Mediterranean:

They had run tanker trucks in the other direction - from Syria into Iraq, siphoning off Syrian oil and its sovereign resources, after President Trump during his first term hailed that the Pentagon would 'secure the oil'.

Read our: Mystery Explosions: Syria's Recovering Gas Network Keeps Getting Sabotaged

As for actual pipeline routes from Iraq to the Mediterranean via Syria being revived, major hurdles remain and its not just the gargantuan cost of reviving the derelict hardware - but there's an obvious security problem in a country that's seen mysterious armed groups constantly bomb Syrian energy infrastructure - both during the Assad years and now under Jolani.

Tyler Durden Wed, 10/07/2026 - 14:35

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