General Market News

Veteran investor Jeremy Grantham warns that the U.S. stock market is at its most expensive level in American history, driven by the AI boom, with the market capitalization to GDP ratio at 235%. He compares current conditions to the 2000 tech bubble and suggests markets could face a historic decline, though timing remains uncertain.

• The market cap to GDP ratio stands at 235%, more than double the economy's size and well above Warren Buffett's 200% danger threshold from 1999-2000
• Grantham views SpaceX's $2 trillion valuation and blockbuster IPO as a sign of extreme market enthusiasm, calling it potentially 'one of the defining peaks of all time'
• Despite issuing similar warnings in March 2024, stocks continued to advance, highlighting Grantham's acknowledgment that timing market peaks is 'terribly uncertain'

Billionaire investor Jeremy Grantham predicts bitcoin will gradually fade into irrelevance over the coming decades, calling it a 'useless, speculative' asset without intrinsic value or stability. The GMO co-founder, known for calling asset bubbles, argues bitcoin lacks practical utility and hasn't proven itself as a reliable investment.

• Bitcoin is currently trading around $60,000, down approximately 52% from its October peak, with many investors expecting the slump to continue for several more months
• Grantham criticized bitcoin's volatility, noting it has crashed at least 70% from peak levels in every bear market cycle and 'just halved for no particular reason in a strong economy'
• The investor argues bitcoin provides no real-world utility, stating people don't use it for serious trades or everyday purchases like groceries, claiming it primarily 'allows crooks to move money around'

New GLP-1 weight loss pills from Novo Nordisk and Eli Lilly are expected to increase demand but won't reduce costs for employers, leading companies to cut or restrict coverage. Despite employee demand, the pills are priced similarly to injectables ($1,000-$1,350 per month list price) while being less effective, prompting employers to tighten eligibility requirements or drop coverage entirely. In 2026, 6% of large employers eliminated GLP-1 coverage, with more cuts planned for 2027.

• 87% of employers expect oral GLP-1s to increase demand, but only 9% predict price drops; 51% cite GLP-1s as the top driver of rising prescription drug costs
• Coverage dropped from nearly half of large employers in 2025 to 6% cutting benefits in 2026, with 5% more planning cuts for 2027 as net costs remain $569-$664 per employee monthly
• Employers are implementing stricter requirements (BMI 35+ instead of 30+), limiting coverage to diabetics only, or exploring alternative options like HRAs and third-party weight management programs to control costs

President Trump is giving new Federal Reserve Chairman Kevin Warsh more leeway to hold interest rates steady despite inflation rising to 4.1% in May, marking a shift from his previous demands for immediate rate cuts. White House officials attribute this patience to Trump's confidence in Warsh, who was sworn in as Fed Chair in May 2026, rather than any change in how they view economic data. Warsh has opted to keep rates unchanged while elevated energy prices from conflict with Iran complicate the inflation picture.

• Inflation hit 4.1% in May (core inflation at 3.4%), well above the Fed's 2% target, driven largely by elevated energy prices from the Iran conflict
• Trump economic advisers including Peter Navarro, Scott Bessent, and Kevin Hassett have backed off calls for immediate rate cuts, supporting Warsh's decision to hold rates steady at his first meeting
• Gas prices have fallen 58 cents to $3.90 per gallon following a deal to reopen the Strait of Hormuz, though Middle East instability continues with Iranian forces seizing vessels as recently as Thursday

US stocks fell on Friday as investors continued rotating out of technology stocks, with the Dow down 207 points and Nasdaq declining 0.95%. Semiconductor stocks led the selloff despite strong earnings, as concerns grew over AI infrastructure spending sustainability and rising inflation, which hit 4% in May for the first time in three years.

• Major chip stocks declined sharply: AMD and Intel each fell over 3.5%, Nvidia dropped 1.7%, and Micron sold off despite beating earnings expectations
• US inflation climbed above 4% in May driven by higher energy prices, with traders now pricing in one 25-basis-point rate hike and a 27% chance of another before year-end
• The tech selloff spread globally with South Korea's Kospi falling 5.81%, Japan's Nikkei down 4.15%, and European Stoxx 600 declining 1%

Federal Reserve Chairman Kevin Warsh has appointed two internal Fed economists, Dan Covitz and Eric Engstrom, as key advisors to help reshape the central bank's approach to economic analysis and monetary policy. The appointments follow Warsh's recent announcement of five task forces focused on reforming the Fed's operational structure, including communication, data, inflation, technology, and the balance sheet.

• Both appointees are longtime Fed insiders: Covitz serves as one of three deputy directors in research and statistics, while Engstrom is an associate director in monetary affairs
• The advisors will serve on a rotating basis while maintaining their current divisional positions, signaling Warsh's reliance on internal expertise despite rhetoric about seeking outside perspectives
• The moves come after Warsh previously appointed Paul Winfree, an architect of Project 2025 which sought to decrease Fed influence, and Daniel Heil from Stanford

Byju's global lenders are in advanced talks to acquire approximately 30% of Aakash Educational Services, a partly-owned Indian coaching institute, in exchange for dropping all legal action against founder Byju Raveendran. The settlement would end a years-long dispute involving $1 billion in unpaid loans following Byju's 2024 bankruptcy filing. Once India's most high-profile startup, Byju's expanded to 21 countries during COVID-19 before its dramatic collapse in 2023.

• Settlement talks value Aakash Educational Services at roughly $2 billion; the institute operates 300+ centers across India with annual revenue of approximately $254 million
• Byju's acquired Aakash for $1 billion in 2021, but its stake has since been diluted to a minority position, with Manipal Health now the largest shareholder
• The dispute involves U.S.-based Glas Trust demanding $1 billion in unpaid loans and spans courts in India and the United States following Byju's bankruptcy filing in 2024

Britain's temperature reached 36.9 degrees Celsius in Suffolk, eastern England on Friday, provisionally breaking the record for the hottest June day for the third consecutive day. The Meteorological Office confirmed the record as the heatwave affecting the country comes to an end.

• The temperature of 36.9°C was recorded in Suffolk, marking the third consecutive day of breaking June heat records
• The record-breaking heatwave is now coming to an end according to the UK Meteorological Office
• The unprecedented streak of three consecutive days of June temperature records highlights the intensity of the recent heat event

U.S. equity indices showed weakness in Friday premarket trading on June 26, 2026, with the Nasdaq 100 down 1.27%, S&P 500 down 0.54%, and Dow Jones down 0.33%. Despite the recent pullback, analysts maintain that all three indices remain in longer-term uptrends and view current weakness as a healthy consolidation rather than a trend reversal.

• The Nasdaq 100 tested its 50-day EMA with support at $28,500, with analysts expecting a potential bounce toward the 30,000 level as the market works off 'excess froth'
• The Dow Jones 30 is consolidating around the 52,000 resistance level after Thursday's strong session, with dips viewed as buying opportunities in the ongoing uptrend
• The S&P 500 dropped to test support at 7,300 near its 50-day EMA, with the pullback characterized as a 'garden-variety' correction following months of strong upward momentum

US stock futures pointed to further losses on Friday, with the Nasdaq set for a fifth consecutive day of declines as investors rotated out of technology stocks ahead of quarter-end. The selloff was driven by concerns over AI-related capital expenditure sustainability and rising component costs, with Apple falling 6% after warning of memory cost pressures and Asian tech stocks tumbling sharply overnight.

• Nasdaq futures fell 1.2% while S&P 500 and Dow futures dropped 0.5% and 0.1% respectively, following a brutal Asian session where South Korea's Kospi plunged 5.8% and Japan's Nikkei declined 4.2%
• Apple dropped 6% on Thursday after warning higher memory costs would force price increases, while Microsoft fell nearly 4% due to rising Xbox component costs, highlighting concerns that major tech companies can no longer fund AI development from operating cash flow alone
• Core PCE inflation rose to its highest level since October 2023, reinforcing expectations for prolonged elevated interest rates, though analysts characterized the move as sector rotation rather than the beginning of a bear market

Tech stocks led market declines as Apple and Microsoft announced price hikes for iPads, MacBooks, and Xbox consoles due to surging memory chip costs driven by AI demand. The Nasdaq extended its losing streak to its longest since February, falling over 4% for the week. Meanwhile, the Supreme Court delivered major rulings on Bayer's Roundup litigation and Trump's immigration policies.

• Apple fell over 6% in its worst day since September after announcing price increases, while Microsoft dropped 3.5% on Xbox price hikes, both citing rising memory costs from AI-driven chip demand
• The Supreme Court ruled 7-2 that Bayer cannot be sued over state-level failure-to-warn claims regarding Roundup's cancer risks, and separately allowed Trump to end Temporary Protected Status for Haitian and Syrian immigrants
• JPMorgan promoted Douglas Petno and Troy Rohrbaugh to co-presidents as part of succession planning, with Petno taking sole control of investment banking and Rohrbaugh leading consumer banking

Spain's market watchdog CNMV has ruled out any extensions or waivers for crypto firms that fail to secure licenses under the EU's MiCA regime by the end of June deadline. Major platforms including Binance, which lacks authorization, must wind down EU operations, affecting millions of users. The regulator is working with unlicensed firms to ensure orderly exits while protecting customer assets during the transition.

• CNMV chair Carlos San Basilio confirmed 'no exceptions or extensions' to the June 30 MiCA licensing deadline, requiring unlicensed platforms to cease operations
• Binance recently halted EU operations after failing to secure a license in Greece, creating challenges for platforms with millions of European users
• Investors cannot conduct new transactions with unauthorized platforms and will lose MiCA protections; enforcement responsibility remains with individual EU member states

Sergei Ivanov, a close ally of President Putin who served as Russia's defence minister and later as a special presidential representative, has died at age 73. The announcement was made by the basketball VTB United League, where Ivanov held the position of honorary president. His death removes a longtime figure from Putin's inner circle.

• Ivanov served as Russia's defence minister and was a special presidential representative for environmental protection, ecology and transport
• He held the honorary position of president of the basketball VTB United League, which announced his death on Friday
• At 73 years old, Ivanov was considered one of Putin's close allies and a key figure in Russian political and military circles

Two major earthquakes struck Venezuela on June 25, 2026, with U.S. government models suggesting the death toll could exceed 10,000. The disaster presents a defining challenge for interim President Delcy Rodriguez, a Trump ally who replaced ousted socialist leader Nicolas Maduro in January. The crisis offers both an opportunity to build national unity and risks political failure given Venezuela's weakened infrastructure and economic decline.

• Secretary of State Marco Rubio promised significant, fast U.S. aid, contrasting with Hugo Chavez's 1999 rejection of American help after deadly landslides killed at least 10,000
• Analysts warn Venezuela's emergency response capacity has been 'hollowed out' by 10-15 years of economic turmoil, with the country holding $240 billion in debt and 8 million people displaced
• Historical precedent shows earthquakes can reshape politics: mismanaged disaster responses contributed to the downfall of Nicaragua's Somoza regime (1972) and Mexico's PRI one-party rule (1985)

Rising memory chip costs driven by AI demand are forcing consumer electronics retailers and manufacturers to raise prices, with Apple already increasing MacBook and iPad prices. Gartner projects PC prices will rise 17% and smartphone prices 13% in 2026, while shipments are expected to decline 10.4% and 8.4% respectively. The shortage has prompted industry groups to urge government intervention to address the 'urgent imbalance' affecting consumers and businesses.

• Apple announced price increases on MacBooks and iPads, citing an 'unprecedented challenge' from memory shortages, with potential for additional hikes ahead
• Best Buy expects its computing division to be most affected, though the retailer pulled forward inventory in Q1 to mitigate short-term impacts and has seen nine consecutive quarters of positive comparable sales in computing
• Industry analysts warn the shortage could fundamentally change consumer upgrade cycles, with prices expected to remain elevated until late 2027, potentially causing consumers to hold devices longer and stagnating the electronics market

Century Global Commodities Corporation filed its audited financial statements for the year ended March 31, 2026, showing declining liquidity with unrestricted cash and securities totaling $2.4 million, down from $4.2 million a year earlier. Net working capital also decreased to $5.0 million from $6.0 million. The company maintains its focus on iron ore projects in Canada and a food distribution business in Hong Kong.

• Unrestricted free cash, bank deposits and marketable securities declined 43% year-over-year to $2.4 million as of March 31, 2026
• Net working capital decreased to $5.0 million from $6.0 million, though management states this is adequate to cover near-term administrative and mineral property development expenses
• The company's flagship Joyce Lake iron ore project in Newfoundland and Labrador is undergoing environmental assessment following a 2022 feasibility study update

EU member states on Friday significantly scaled back the European Commission's proposal to fund cross-border energy grid upgrades, reducing the revenue share national grid operators must contribute from 25% of all congestion revenue to just 10% of cross-border congestion income starting in 2028. While countries cut funding mechanisms, they agreed to more centralized EU planning of power network expansion to handle growing renewable energy supply and rising electricity demand from data centers and electric vehicles.

• Sweden, which collected $3.1 billion in grid congestion revenues last year, led opposition to the original proposal and successfully lobbied to eliminate contributions from domestic power trade revenues entirely
• The funding reduction raises concerns about financing Europe's aging electricity grids, which require major upgrades as gaps already force curtailment of wind and solar output and contribute to higher energy prices than China and the US
• The EU Commission will now develop a centralized 10-year plan for cross-border electricity infrastructure, addressing what Energy Commissioner Dan Jorgensen described as '27 different people trying to do a jigsaw puzzle without looking at the picture on the box'

Ukraine's largest private power producer DTEK plans to phase out coal by 2035 and transition to natural gas and nuclear generation, with CEO Maxim Timchenko announcing infrastructure upgrades accelerated by Russian war damage. The company signed a memorandum with GE Vernova for a €900 million gas turbine project and is pursuing renewable energy investments as part of its net zero by 2050 goal.

• DTEK and GE Vernova will develop a 650-megawatt combined-cycle gas turbine at the Burshtyn power plant with a €900 million budget, targeting commercial operation before 2032
• About 80% of DTEK's coal-fired power station equipment was damaged or destroyed by Russian attacks last winter, requiring €300 million in repairs split between own funds and partner financing
• The company plans a 650 MW wind park in Poltava region and aims to import 6-12 LNG cargoes annually (1-1.2 billion cubic meters) over the next 1-2 years through its D.Trading business

Swiss financial regulator FINMA is urging banks and watchdogs to rapidly adopt AI technology to counter escalating cybersecurity risks posed by AI-enhanced threats. FINMA's president Marlene Amstad emphasized the need for faster vulnerability patching as hackers accelerate attacks, following a hackathon with international supervisors to develop new regulatory tools.

• FINMA created a forum within the International Organization of Securities Commissions to promote AI adoption by watchdogs covering approximately 95% of global financial markets
• Around 100 policy and technology specialists participated in a hackathon this week to jointly build tools for crypto-market supervision, with regulators exploring embedded safeguards in digital asset systems
• Recent AI models like Anthropic's Mythos have exposed vulnerabilities and operational risks, prompting U.S. export suspensions on national security grounds while China develops domestic alternatives

Following a 60-day U.S. sanctions waiver on Iran, multiple middlemen and National Iranian Oil Co (NIOC) have approached Indian refiners offering discounted Iranian crude at $3-4 per barrel below similar regional grades. However, Indian refiners face challenges absorbing the oil in the near term due to existing supply commitments through August and unclear payment mechanisms and banking channels.

• Traders from Singapore and Dubai, along with NIOC directly, are contacting Indian refiners to sell discounted Iranian oil following Washington's temporary sanctions waiver
• Indian refiners have limited capacity to absorb Iranian crude immediately as most have secured supplies through August and Middle Eastern suppliers are pressing buyers to honor annual contracts
• Iran was India's second-largest oil supplier in 2010/11 before U.S. sanctions forced India to halt crude imports from Tehran in May 2019; India received two Iranian cargoes in April 2024 after a previous 30-day waiver