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zerohedge @zerohedge

Top Overnight News

Donald Trump said talks with Iran over an interim peace deal will “work out well.” But oil bounced from a six-week low as clashes continued near the Strait of Hormuz. The US said it struck Iranian air defense facilities in response to the shooting down of an American drone. BBG

Nvidia will debut a new chip for laptop and desktop computers to challenge Intel and AMD, whose shares were down premarket. BBG

Anthropic cut its list of unauthorized secondary-market platforms to four from eight following pushback from investors. BBG

Jay Powell has said the US Federal Reserve is in the throes of a “stress test” that threatens the strength and stability of the world’s largest economy, claiming Donald Trump’s attempts to fire central bankers undermine the rule of law. FT

Tech giant SoftBank has become Japan’s biggest company by market value, as AI demand powers the country’s stocks to an all-time high and helps Masayoshi Son’s group overtake Toyota. The car manufacturer and industrial giant has been Japan’s biggest company by market capitalization for more than 20 years, and its ousting from the top slot reflects rising global investor interest in AI and semiconductor companies. FT

China’s factory activity slowed in May, with the official manufacturing PMI edging down to 50, as expected, from 50.3 in April. BBG

China issued sweeping new rules on Monday tightening control of overseas deals that involve Chinese investors, technology, data and national security, a month after Beijing ordered Meta to unwind its acquisition of AI startup Manus. RTRS

Chinese mainland investors turned net sellers of Hong Kong stocks for the first time in nearly three years in May. BBG

Eurozone inflation expectations weren’t as bad as feared, with 1-year unchanged at 4% while 3-year ticked down from 3% to 2.9% and 5-year held steady at 2.4%. ECB

US IPO activity has recently accelerated following four consecutive years of muted issuance. 24 US companies have come to market so far in Q2 2026, bringing the YTD total to 40. This represents more than double the number of IPOs at this point in 2025 and the largest total through May since the 95 IPOs launched in the first five months of 2021. Nonetheless, despite the recent pickup in activity, the number of deals so far this year has lagged the average total of 50 IPOs through May since 1995: Goldman

https://x.com/zerohedge/status/2061419414893851009

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Team Vati Loopin' agin.

WHAT RESPONDENTS ARE SAYING

“Impact of Iran conflict starting to directly and negatively impact cost of supply chain. Oil and related commodities are escalating in price.” [Transportation Equipment]

“The Middle East conflict is triggering shipment delays and uncertainties. Elevated gas prices and inflation will surely impact our purchases. However, over the last quarter, we’ve seen increased demand that was unexpected.” [Machinery]

“As with all companies, we have felt the effects of fuel-related inflation and general market uncertainty due to overall economic variability and geopolitical events that have impacted such markets as construction, automotive and agriculture, as well as the general industrial sector.” [Chemical Products]

“Continuing trends of 15-percent sales increase in April, cost increases on a majority of raw materials, and fuel charges on many inbound and outbound deliveries. We remain cautiously optimistic that if global economic factors stabilize and the Iran conflict ends, we can continue with increased sales and maintain acceptable margins.” [Chemical Products]

“Cost of diesel is having huge impacts on our profitability. Confusion abounds around tariff refunds. We purchase many imported goods but in most cases are not the importer of record, so it is currently unclear to what we may be entitled.” [Food, Beverage & Tobacco Products]

“Prices continue to rise for many products — some due to increase in data center creation for electronic components, others as a result of the Iran war and reductions in availability of oil/petroleum.” [Computer & Electronic Products]

“Supply constraints continue to propagate and are a key headwind to supporting increased aerospace and defense demand. Semiconductors, critical minerals and certain types of raw materials are illustrative examples of sales plans at risk. Corporate risk mitigation actions are underway to secure supply in the midst of constraints.” [Transportation Equipment]

“The current atmosphere is one of extreme uncertainty and concern for the future in terms of both price stability and longer-term supply continuity related to the Iran conflict and Strait of Hormuz closure. We have a lot of negotiations in process related to requested price increases, some related to oil prices and some still fallout from the 2025 tariff/geopolitical climate.” [Miscellaneous Manufacturing]

“Continued dynamic random-access memory (DRAM) volatility, increased gas prices and tariffs are causing long lead constraints and price hikes that customers are not willing to bear. Panic is starting within our industry.” [Electrical Equipment, Appliances & Components]

“Business appears to be weakening — uncertainty surrounding the Iran war, rising energy prices and customers unwilling to commit to expenditures beyond a very short term.” [Fabricated Metal Products]

Nor shud anybodies.