Read Sunday ☕️

Last Week’s Headlines

Economy & World News

• Euro zone inflation falls to cooler-than-expected 1.9% in May, below ECB target
  Euro zone inflation dropped to 1.9% in May, below the European Central Bank's 2% target, according to Eurostat data. Economists had anticipated a 2% reading, making this decline more significant than expected.

• Dutch Government Falls After Far-Right Party Quits Coalition
  The Dutch government collapsed after far-right lawmaker Geert Wilders' Freedom Party withdrew from the coalition over migration disputes, likely triggering a snap election. The cabinet is set to meet in The Hague to discuss the way forward following the year-long coalition's end.

• Saudi Arabia's Hurdles at Home Are Reshaping the Mideast Financial Order
  Saudi Arabia's financial challenges, including lower oil prices and weakening finances, are shifting attention to its Gulf neighbors. Bankers and business leaders are adjusting their focus as the kingdom seeks foreign capital to sustain spending.

• NATO Is Pushing Europeans for Fivefold Boost to Air Defenses
  NATO is urging European member states to expand ground-based air defense capabilities fivefold to counter Russian aggression, a topic to be discussed at a Brussels meeting. The ramp-up addresses a key security gap, according to insiders familiar with the matter.

• Private sector hiring rose by just 37,000 in May, the lowest in more than two years, ADP says
  Private sector hiring increased by only 37,000 jobs in May, the lowest since March 2023, falling short of the 110,000 forecast by Dow Jones. Annual pay growth remained steady at 4.5% for those in their positions and 7% for job changers.

• Trump Officials Target Columbia Accreditation Over Pro-Palestine Protests
  The Education Department has concluded that Columbia University no longer meets accreditation standards due to violations of anti-discrimination laws related to pro-Palestine protests. This action marks the latest Trump administration effort to target elite schools.

• ICE Moves to DNA-Test Families Targeted for Deportation With New Contract
  ICE is implementing a new contract to conduct DNA tests on families targeted for deportation, raising concerns among advocates about potential child separations. The Trump administration’s intentions with these tests are under scrutiny.

• US Said to Deny Air Cover to Europe Force in Postwar Ukraine
  The US is refusing to provide air defense for a UK and France-planned "reassurance force" in postwar Ukraine, despite British Prime Minister Keir Starmer’s insistence on its necessity. This decision could impact efforts to deter Russian aggression in future ceasefire deals.

• European Central Bank trims interest rates after inflation dips below target
  The European Central Bank has cut interest rates as inflation falls below its 2% target, amid rising geopolitical tensions. The bank now anticipates inflation to average 2% in 2025, down from a previous 2.3% forecast, with the Stoxx 600 holding steady post-announcement.

• Supreme Court Allows DOGE Access to Social Security Data
  The Supreme Court cleared the way for the Department of Government Efficiency, once led by Elon Musk, to access Social Security Administration records. This decision lifts a legal barrier to the cost-cutting group’s work.

• Miami’s Drinking Water Is Threatened by a Florida Nuclear Plant
  A plume of super-salty water is seeping from the aging Turkey Point plant into a critical aquifer, prompting a race to contain it. The plant generates enough electricity for 1 million South Florida homes and businesses.

Public Markets

•  Constellation Energy rallies 15% on Meta nuclear power deal
  The article reports that Meta has signed a 20-year agreement to buy 1.1 gigawatts of nuclear power from Constellation Energy's Clinton Clean Energy Center in Illinois starting in 2027, saving the plant from premature closure. This deal has led to a 15% rally in Constellation Energy's stock.

• Wells Fargo Asset Cap Lifted by Fed, Paving Way for Growth
  The Federal Reserve has lifted a seven-year asset cap on Wells Fargo & Co., freeing the bank from restrictions and boosting its shares. This move ends an unprecedented punishment and supports growth under CEO Charlie Scharf.

• BlackRock Escapes Texas Oil-Boycott Blacklist After ESG Retreat
  BlackRock Inc. has been removed from Texas' blacklist of companies boycotting fossil fuels after adjusting its environmental policies, ending a three-year standoff. The decision allows pension funds and other state-run investments to re-engage with the world's largest asset manager.

• Global Stocks Hit Record as Economic Bets Outweigh Trade Jitters
  Global equities reached a record high, driven by a resilient US economy and a softer stance on tariffs by President Donald Trump. The MSCI All-Country World Index rose 0.3% to 888.24 points, surpassing its previous high from February.

• Reddit sues AI startup Anthropic for breach of contract, ‘unfair competition’

  Reddit has filed a lawsuit against Anthropic, alleging the AI startup unlawfully used its data and platform. The suit comes as Reddit’s massive data trove is key for training large AI models, with OpenAI’s Sam Altman as a major investor.

• British fintech Wise to move primary listing to the U.S. in blow to London stock exchange
  Wise will shift its main listing to the U.S. while maintaining a secondary listing in London, marking a significant move. The fintech firm, which debuted on London’s stock market in 2021 as a symbolic win for the UK, reflects doubts about London’s ability to host major tech listings.

• Lululemon shares tumble 23% as it cuts full-year earnings guidance, citing ‘dynamic macroenvironment’
  Lululemon beat Wall Street expectations for fiscal first-quarter earnings but cut its full-year guidance due to a dynamic macroenvironment. The apparel company’s shares plunged about 23% in extended trading as a result.

• Starlink Gets India License to Start Services, Official Says
  Elon Musk’s Starlink Inc. has received regulatory approval in India to roll out satellite internet services. The company, which has 5 million customers globally, secured the license from India’s telecom ministry.

• Swiss government proposes tough new capital rules in major blow to UBS
  The Swiss government proposed strict new capital rules requiring UBS to hold an additional $26 billion in core capital. The measures aim to fully capitalize UBS’s foreign units and limit share buybacks to strengthen resilience.

Real Estate & Private Equity

• Over 3,000 Private Credit Deals From Just 20 Analysts Raise Questions on Wall Street
  A small ratings firm highlights its role as the market's most prolific grader of private credit, raising concerns among industry insiders about potential trouble brewing. The article notes the firm's involvement in over 3,000 deals, prompting scrutiny on Wall Street.

• New Nomad Luxury Hotel Coming to Top Floors of Michigan Central Station
  A new luxury hotel under Hilton's NoMad brand is set to open in Detroit in 2027 on the top floors of Michigan Central Station. The nearly 180-room hotel will be part of Ford Motor Company's 30-acre tech and cultural hub.

M&A, IPO’s, Bankruptcies

•  Chart Industries and Flowserve Near All-Stock Merger
  Chart Industries and Flowserve are nearing an all-stock merger that would create a combined entity worth roughly $19 billion, including debt. The deal involves two businesses in industrial-process technologies, with Flowserve currently valued at about $6.6 billion.

• Yale Nears Deal to Sell $2.5 Billion of Private Equity Stakes
  Yale University is finalizing the sale of up to $2.5 billion in private equity and venture capital assets ahead of potential tax changes. The Ivy League school’s endowment is in advanced talks for the sale, code-named "Project Gatsby," with a possible discount.

• Crypto Firm Circle's Shares Soar in Stock Market Debut
  Shares of crypto firm Circle jumped in their stock market debut, boosting hopes for a revival in initial public offerings this summer. The stablecoin issuer’s success is attributed to a favorable Trump administration climate for the industry.

• Omada Health prices IPO at $19 per share, in middle of expected range
  Omada Health is set to start trading on Nasdaq under the ticker "OMDA" at $19 per share, marking its IPO. It follows Hinge Health as the second digital health company to debut in recent weeks.