Good morning. Happy Friday.
The Asian/Pacific markets leaned to the upside. Japan, India, Malaysia, Indonesia, and the Philippines did well; China and New Zealand were weak. Europe, Africa and the Middle East are getting crushed. The UK, Denmark, Poland France, Turkey, Germany, Greece, Finland, Switzerland, Hungary, Spain, the Netherlands, Italy, Portugal, Austria, Sweden, and the Czech Republic are down more than 1%. Futures in the States point to big down open for the cash market.
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The dollar is down. Oil is down; copper is up. Gold and silver are up. Bonds are up. Bitcoin is down.
Stories/News from Seeking Alpha…
70 is the new…
With lots of talk about the debt incurred by the “One Big Beautiful Bill,” chatter is taking place on how to help fund America’s borrowing. One such idea is raising the retirement age, although that level of support didn’t get the biggest response in the latest Wall Street Breakfast poll. Instead, WSB subscribers opted for changing the tax code and steep spending cuts that might yield more immediate benefits, but some are still concentrating on the former across the globe.
On the rise: Denmark has formally approved raising its retirement age to 70 from the current 67, marking the highest level in the world for full benefits. Things will happen gradually, with the retirement age increasing to 68 in 2030, and 69 in 2035, before finally reaching 70 in 2040. The measure is aimed at pension sustainability for an aging population, but might be mirrored by other countries facing budget deficits and similar demographic challenges.
Back in 2006, Copenhagen implemented a welfare agreement that tied the retirement age to increases in life expectancy. Things have been revised over the past two decades despite some protests, but the latest increase could be the last one for a long time. Following the latest approval in Denmark’s parliament, Prime Minister Mette Frederiksen said, “You can’t just keep saying that people have to work a year longer.”
What about the U.S.? The retirement age has also been rising since Social Security reforms back in 1983. Looking to address funding concerns, the age of 67 has become the starting point to claim full benefits in 2025, impacting millions of Americans born in 1960. With people living longer and entitlements like Medicare hard to touch, that number might continue to rise in the near future.
What else is happening…
Wall Street closes little changed as bond selloff eases up.
Apple developing AI glasses with plans to launch by 2026.
Elevated mortgage rates continue to dampen home sales.
Solar stocks plunge after House passes Trump’s tax bill.
U.S. may limit imports if countries don’t pay more for drugs.
MAHA report lists factors behind chronic diseases in kids.
Summer travel season kicks off with Memorial Day rush.
Ross Stores (ROST) pulls guidance amid tariff uncertainty.
Big banks explore possibility of issuing a joint stablecoin.
Trump vs. Harvard: Foreign students can no longer enroll.
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Good morning. Happy Thursday.
The Asian/Pacific markets were weak. Japan, China, Hong Kong, South Korea, India, Malaysia, and the Philippines posted the biggest losses. Europe, Africa and the Middle East are down big. The UK, Denmark, Poland France, Germany, Switzerland, Norway, the Netherlands, Italy, Israel, Austria, Sweden, and Saudi Arabia are down more than 1%. Futures in the States point to down open for the cash market.
————— VIDEO: New Leadership is Carrying the Market Higher —————
The dollar is up. Oil and copper are down. Gold and silver are down. Bonds are down. Bitcoin is up.
Stories/News from Seeking Alpha…
The crypto parlor
The selloff in bonds took the cheer out of Wall Street on Wednesday, but risk-on sentiment was more than alive elsewhere. Bitcoin (BTC-USD) hit fresh record highs just before “Pizza Day,” with the world’s most popular crypto climbing to $110,000 and then some. Supportive regulatory developments in the U.S. have added to the momentum as congressional lawmakers near legislation that would establish a regulatory framework for the stablecoin market.
Snapshot: The crypto world didn’t get here in a vacuum. In fact, May 22 is heralded as “Bitcoin Pizza Day,” in reference to the first commercial Bitcoin (BTC-USD) transaction that took place 15 years ago. On that day in 2010, early adopter and miner Laszlo Hanyecz bought two large Papa John’s (PZZA) pizzas for 10,000 BTC, signaling the potential for real-world purchases and Bitcoin as a medium of exchange.
At the time, BTC was only a small development among tech nerds, but would eventually capture the love of investors and the market. Commodity or currency? Regulated or decentralized? Safe haven or risk asset? There have been many questions about Bitcoin along the way, but check out the list of milestones in the graphic above that paved the way toward wider adoption.
SA commentary: “Following its recent consolidation phase, Bitcoin is poised for a significant rally, potentially reaching $176,000,” writes Investing Group Leader Joe Albano. “The creation of Bitcoin ETFs has significantly boosted retail investor participation, legitimizing the asset class and driving prices higher,” adds SA Analyst Dividend Seeker. “Governments, including the US, are now considering Bitcoin strategic reserves, adding a new layer of legitimacy and potential price support.”
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What else is happening…
Trump’s ‘big beautiful bill’ passes House vote by narrow margin.
Former Apple (AAPL) design chief joins OpenAI in $6.5B deal.
UnitedHealth turns red after report of nursing home kickbacks.
Tariff impact: Nike (NKE) to hike prices on some products soon.
… will return to Amazon (AMZN) for the first time since 2019.
Google (GOOG) (GOOGL) tests ads in AI search responses.
DEA in Biden administration thwarted marijuana rescheduling.
Snowflake (SNOW) pops after raising product revenue forecast.
Target (TGT) falls after results show diminishing market share.
Is now the right time to take Fannie Mae, Freddie Mac public?
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Good morning. Happy Wednesday.
The Asian/Pacific markets mostly did well. China, Hong Kong, South Korea, India, Taiwan, Australia, New Zealand, Indonesia and the Philippines did well; Japan and Thailand were weak. Europe, Africa and the Middle East are mostly down. South Africa and the Czech Republic are up; Poland, France, the UAE, Switzerland, Portugal, Israel, Austria, Sweden and Saudi Arabia are down. Futures in the States point to moderate down open for the cash market.
————— VIDEO: New Leadership is Carrying the Market Higher —————
The dollar is down. Oil and copper are up. Gold and silver are up. Bonds are down. Bitcoin is down.
Stories/News from Seeking Alpha…
A new era
A new ambitious plan to protect the United States from foreign attacks has been unveiled by President Trump, building on the newly established Space Force that was formed during his first term in office. The next-generation “Golden Dome” missile defense shield would feature a sensor and communications network that could detect threats much earlier and take out enemy missiles with space-based interceptors. The proposed $175B project aims to be operational in 2029, with defense contractors like L3Harris (LHX) and Lockheed Martin (LMT) eager to get in on the action.
Backdrop: Ronald Reagan proposed a similar system in the 1980s, called the Strategic Defense Initiative (a.k.a. Star Wars program), but the technology wasn’t there and the costs were prohibitive amid fears it could lead to proliferation. Traditionally, the U.S.’s broad military reach across the globe has sought to ward off any enemy attack before threatening the American homeland, but times are changing. There are new threats of Russian satellite-based weapons, Chinese nuclear-capable hypersonic glide vehicles, and coordinated drone and missile swarms (like the one launched by Iran on Israel in April 2024).
“In 2050, we should expect to be under the threat of ultra-long-range precision weapons at any range and launched from any domain, including space,” Frank Kendall, previous Secretary of the Air Force, wrote in a report released in December. “There will be no sanctuary from these weapons. Space will be recognized as the decisive domain for almost all military operations.”
Thought bubble: Broader deployment of missile shields, like the THAAD system, has already gone some of the way in replacing doctrines like “mutual assured destruction.” The Golden Dome would take this a step further by being able to target or intercept missiles during the early stages of flight, which might trigger a fresh arms race in space and bring a rapid end to the Outer Space Treaty. However, that era may already be over. There are increasing military developments and violations by U.S. adversaries, while a new level of deterrence might be needed to ensure superiority in the final frontier.
Here’s the latest Seeking Alpha analysis
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What else is happening…
SA Asks: Can retailers eat tariff costs and not pass them on?
ConocoPhillips (COP) CEO latest to say peak shale has arrived.
FDA gets stricter on COVID shots; pandemic treaty without U.S.
Google adds ‘AI Mode’ to Search, commits $150M to AI glasses.
Five years later: Fortnite is back in the U.S. App Store (AAPL).
Kraft Heinz (KHC) weighs deals, Berkshire (BRK.B) exits board.
Will Chinese electric vehicles ever make their way to the U.S.?
Scaled back plans: Ford (F) to let Nissan use EV battery plant.
Nippon (OTCPK:NPSCY) still committed to US Steel (X) takeover.
KKR: Government bonds no longer working as ‘shock absorbers.’
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Good morning. Happy Tuesday.
The Asian/Pacific markets were mixed. China, Hong Kong, and Australia did well; India, Indonesia, and the Philippines were weak. Europe, Africa and the Middle East are doing well. The UK, Denmark, France, Germany, Greece, Finland, Spain, Italy, and Portugal are up; Turkey is down. Futures in the States point to down open for the cash market.
————— VIDEO: New Leadership is Carrying the Market Higher —————
The dollar is up a small amount. Oil and copper are down. Gold and silver are up. Bonds are down. Bitcoin is down.
Stories/News from Seeking Alpha…
Brexit ‘reset’
It’s been nearly a decade since the Brexit vote, which saw the United Kingdom decide to withdraw its European Union membership. The referendum was a close one, with a 52% to 48% vote in favor of leaving the economic and political bloc, and even took several years until arrangements were finally made to facilitate the exit. The matter is still subject to great debate, as well as the benefits or detriments incurred since ties were severed, but the Labour government of Keir Starmer is trying to facilitate closer ties after ousting the Conservatives from power following 14 years of Tory rule.
The latest: The UK and EU have agreed to several new agreements, including pacts on defense and security, fishing, and agricultural exports. Other areas include energy trading, as well as exploring student exchange programs and mutual recognition of professional qualifications. The deals aim to “reset” the Brexit tone and pave the way for a deeper relationship in the future, especially given President Trump’s hardline push on tariffs and trade, and Europe beefing up its military investments to levels not seen since WWII.
“It’s time to move on from the stale old debates and political fights to find common sense, practical solutions which get the best for the British people,” Prime Minister Keir Starmer said in a statement. “That’s what this deal is all about – facing out into the world once again.” While the Labour government has ruled out rejoining the EU single market or customs union, there are concerns that new sectoral deals will expand into more industries and undermine Brexit.
SA commentary: “It’s taken nearly nine years, but on a trade-weighted basis, sterling is now barely 2% away from the levels it traded at before the June 2016 Brexit referendum,” ING’s Chris Turner writes in a new Seeking Alpha article. “The European deal with Britain won’t massively boost the economy, nor help avoid tax rises in the autumn. Further regulatory alignment might do that and would help boost sterling, but existing UK and EU red lines make that a daunting task.”
Here’s the latest Seeking Alpha analysis
Did Moody’s Just Kill The S&P 500’s Recovery?
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Nvidia’s Q1 Detonation: Why This AI Juggernaut Is About To Rip Higher
What else is happening…
WSB survey results: Approach deficit by slashing spending, tax changes.
Fed likely to stay in wait-and-see mode until at least September.
CBS News chief exits amid Paramount (PARA)-Trump legal tussle.
Alphabet’s Waymo cleared for robotaxi expansion to San Jose.
China cuts key interest rates to help bolster economic growth.
Tesla (TSLA) battery supplier CATL rallies in Hong Kong debut.
JPMorgan’s (JPM) Dimon discusses succession and acquisitions.
Equinor’s (EQNR) NY offshore wind farm to resume construction.
Judge tells Apple (AAPL) to resolve Fortnite matters or go to court.
Ammo supplied to Ukraine to be financed by frozen Russian assets.
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Good morning. Happy Monday. Hope you had a good weekend.
The Asian/Pacific markets were mostly weak. Indonesia did well, but South Korea, Taiwan, New Zealand, Malaysia and Thailand posted moderate losses. Europe, Africa and the Middle East are currently mostly down. Poland, France, South Africa, Norway, Italy, Portugal, Israel, Austria, Sweden and the Czech Republic are down the most. Futures in the States point to moderate negative open for the cash market.
————— VIDEO: New Leadership is Carrying the Market Higher —————
The dollar is down. Oil is down; copper is up. Gold and silver are up. Bonds are down. Bitcoin is down.
Stories/News from Seeking Alpha…
Lowered profile
The United States no longer holds a perfect credit rating with any of the three major agencies. The slip from top-tier status occurred after Moody’s Investors Service pulled the plug on its Aaa rating, downgrading the sovereign by one notch to Aa1. Fitch already lowered its rating following the debt ceiling battle on Capitol Hill in 2023, while S&P was the first to strip the U.S. government of its AAA score in 2011.
What gives? “We do not believe that material multi-year reductions in mandatory spending and deficits will result from current fiscal proposals under consideration,” Moody’s said in a statement. “Over the next decade, we expect larger deficits as entitlement spending rises while government revenue remains broadly flat. In turn, persistent, large fiscal deficits will drive the government’s debt and interest burden higher. The U.S. fiscal performance is likely to deteriorate relative to its own past and compared to other highly-rated sovereigns.”
The 10-year Treasury yield (US10Y) continued climbing into Monday, rising by 10 basis points to 4.54%, while the 30-year (US30Y) topped 5.00% for the first time since “Liberation Day” tariffs were unveiled in April. A key congressional budget committee on Sunday night also approved a sweeping tax bill being pushed by President Trump, which has added to worries over rising government debt and the widening budget deficit. Elsewhere, stock futures slipped on the latest news, with contracts linked to the S&P 500 (SP500) falling about 1% at the time of writing.
Go deeper: The downgrade from Moody’s is a cause of concern, but it won’t fundamentally change the risk profile of the U.S. Others are taking a more dismissive stance, like Treasury Secretary Scott Bessent, who quoted past secretary Larry Summers in calling Moody’s a “lagging indicator” and “that’s what everyone thinks of credit agencies.” There is plenty of criticism over the agencies’ past missteps, like their “trustworthy ratings” for instruments responsible for the financial crisis, as well as a general lack of transparency and oversight for methodologies and quality credit assessments. Take the WSB survey.
What else is happening…
Trump to Walmart (WMT): Eat the tariffs, don’t charge shoppers.
Federal Reserve plans to cut workforce by 10% in coming years.
General Motors (GM) calls for revoking California’s EV mandate.
SA Asks: What are the best drone stocks, ETFs right now?
Flight cuts expected at Newark airport after talks with airlines.
Buffett won’t be on stage at Berkshire’s (BRK.B) 2026 meeting.
AI laggard? Apple (AAPL) said to be dogged by setbacks.
Fastest Fed-driven housing slowdown – where are the shortages?
UK resets EU ties, passes China as US Treasuries foreign holder.
Separate talks set for today with Russia’s Putin and Ukraine’s Zelenskyy.
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