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The top cases in the US Supreme Court docket
During its current term, the U.S. Supreme Court will decide a number of important cases involving voting rights, presidential power, tariffs and birthright citizenship. Other issues include race, transgender sportspeople, campaign finance laws, LGBT "conversion therapies" and federal agency authority. The term began in October, and will run through the end of June. Separately, the court has also acted in emergency cases in several cases that challenge President Donald Trump's policy. VOTING RIGHTS ACT On April 29, the court gutted a crucial provision of the Voting Right Act, making minorities less likely to challenge a map as racially biased under the landmark civil right law. The court blocked an electoral map which would have given Louisiana a 2nd U.S. Congress district with a majority of Black people. The decision severely undermined Section 2 the Voting Rights Act which Congress passed to prohibit electoral maps that could dilute the power of minority voters. The ruling allowed Republican-led Southern States to demolish Democratic-held districts with majority-Black or majority-Latino voters ahead of November's midterm elections. After the Supreme Court gutted another part of the Voting Right Act in 2013, Section 2 gained more importance as a "bulwark" against racial bias in voting. Black and Latinos tend to vote for Democratic candidates. Birthright Citizenship The court expressed skepticism about the legality of Trump’s directive on April 1, to restrict the birthright citizenship in the United States. The justices asked the administration's attorney about the legal validity and practical implications of Trump's order. The lower court blocked Trump’s executive order that instructed U.S. agencies to not recognize citizenship for children born in?U.S. If neither parent is a legal permanent resident or American citizen, this is also known as a "green-card" holder. The court found that Trump's policies violated the 14th Amendment of the U.S. Constitution and federal laws codifying birthright citizenship. The Supreme Court will likely rule by June's end. TRUMP'S TARIFFS On February 20, the justices struck down Trump's sweeping trade tariffs, which he imposed under a law intended for national emergencies. This ruling has major implications?for global economic growth. The 6-3 decision upheld the lower court's ruling that Trump had exceeded his authority in using this 1977 law. The court ruled that Trump's claim to have the authority to impose tariffs was not supported by the law in question, the International Emergency Economic Powers Act (IEEPA). Congress has the power to impose taxes and tariffs, not the President, according to the U.S. Constitution. Tariffs are at the heart of a global trade conflict that Trump started after he entered his second term in office. This war has alienated trading partner, affected financial markets, and created global economic uncertainty. TRUMP'S FIRE OF FED OFFICIAL Justices expressed skepticism about Trump's attempt to fire Federal Reserve governor Lisa Cook, a move that could threaten the independence of the central bank. The justices said they would not grant Trump's request for a judge to overturn a decision that prevented him from firing Cook immediately while her legal case is being resolved. Congress created the Fed by passing a law, the Federal Reserve Act, that contained provisions designed to protect the central bank against political interference. The law stipulated that governors could only be removed "for cause" if the president so deemed. However, the law did not define this term or establish procedures for removal. Trump claimed that Cook's firing was due to unproven allegations of mortgage fraud, which she has denied. Cook, who is still in her position for now, said that the allegations were a pretext used to fire Cook over differences of monetary policy, as Trump pressures the Fed to reduce interest rates. The ruling is expected to be made by the end June. IMMIGRANTS WITH PROTECTED STATUS The Justices heard arguments April 29 on the Trump administration's move to strip humanitarian benefits from hundreds of thousands Haitian and Syrian migrants, as part of Trump's signature immigration crackdown. The Trump administration appealed two federal judge's rulings that halted its efforts to terminate Temporary Protected Status (TPS), which the U.S. Government had previously granted to over 350,000 Haitians and 6,100 Syrians. Some conservative justices seemed to agree with the administration that courts could not second-guess the decision of the government to end TPS. Some justices questioned also the challengers' claim that the administration didn't follow mandatory protocols when making decisions in accordance with the law governing TPS. The ruling is expected to be made by the end June. Federal Trade Commission Firing The conservative justices of the court have indicated that they will uphold Trump's legality in firing a Federal Trade Commission Member and give an historic boost to president power, while also putting at risk a 90-year old legal precedent. On December 8, the court heard arguments in the Justice Department appeal of the lower court's ruling that the Republican President exceeded his authority by dismissing Democratic FTC member Rebecca Slaughter before the term she was due to finish. The conservative justices seemed sympathetic to the Trump Administration's argument that tenure protections granted by Congress to independent agency heads unlawfully infringed on presidential powers under the U.S. Constitution. Trump was allowed to remove Slaughter until the case concluded. The court is expected to make a decision by the end June. TRANSGENDER SPORTS PARTIcipation The conservative justices seemed ready to uphold the state laws that ban?transgender sports players from participating in female teams, amid an escalating nationwide effort to restrict rights for transgender individuals. On January 13, the court heard arguments from Idaho and West Virginia in appeals of lower court decisions siding with transgender student who challenged the bans as being in violation of the U.S. Constitution, and a federal antidiscrimination act. 25 other states also have laws similar to Idaho's. The conservative justices expressed concerns over imposing a uniform law on the whole country, amid a sharp disagreement and uncertainty about whether medications such as puberty-blocking hormones or gender affirming hormones remove male physiological advantages in sport. The ruling is expected to be made by the end June. LGBT "CONVERSION THERAPEUTY" The court rejected on March 31, a Democratic-backed Colorado Law that prohibited psychotherapists from utilizing "conversion talk therapy" intended to change a LGBT minor's gender identity or sexual orientation. The 8-1 decision sided with the Christian licensed counselor who argued that the ban was an infringement on his right to free speech. The Colorado court rejected the argument that their law only protected speech, but regulated professional conduct. The court reversed a lower-court decision which had upheld a law brought by Kaley Chiles who argued it violated First Amendment protections from government abridgment. HAWAII GUNS LAW The conservative Justices expressed skepticism about a Hawaii gun law which restricts the carry of handguns in public places, such as businesses. They appeared ready to expand the right to own a firearm again. On January 20, the court heard arguments in an appeal filed by opponents of the law, backed by Trump's administration. The challengers were appealing a ruling by a judge that Hawaii's Democratic backed measure probably complies with U.S. Constitution Second Amendment rights to bear and keep arms. Hawaii's law demands that a property owner "expressly authorize" the handgun to be brought onto public property. Four other states in the United States have laws similar to Hawaii's. The ruling is expected to be made by the end June. Drug Users and Guns On March 2, the justices heard arguments in a case in which a dual American/Pakistani national in Texas was defending a federal gun law that prohibits users of illegal drugs to own guns. Hunter Biden, son of former president Joe Biden, was charged under this law in 2023. The Justice Department appealed a ruling by a lower court that the gun restrictions were in violation of the Second Amendment rights to "keep and carry arms" guaranteed under the U.S. Constitution. Gun possession by illegal drug users was prohibited under the landmark Gun Control Act 1968. The decision is expected to be made by the end June. CAMPAIGN-FINANCE On December 9, the court heard arguments in a Republican led bid to strike down "federal limits" on spending by parties and candidates coordinated with each other in a case that involved Vice President JDVance. The conservative justices seemed to be sympathetic towards the challenge. However, the three liberal members of the court appeared inclined to maintain the spending limits. The debate centers around whether federal limits on campaign spending coordinated with candidates' input violate First Amendment protections against government abridgment. Vance and Republican challengers have appealed the ruling of a lower court that ruled on restrictions on how much money can be spent on campaigns by parties with input from the candidates they support. This type of spending is called coordinated party expenses. The ruling is expected to be made by the end June. MAIL-IN-BALLOTS On March 23, conservative justices expressed skepticism about a Mississippi law that was challenged by Republicans. The law allows for a five-day period of grace to allow mail-in votes received after Election Day be counted. This case could lead to stricter voting laws across the country. The Trump administration supported the challenge against Mississippi's law that allows mail-in votes sent by certain voters be counted as long as they are postmarked before Election Day and received within five business days of a federal election. In Mississippi, absentee voting is only available to certain categories of voters. These include the elderly, disabled and those who live away from home. A lower court ruled that the law was unconstitutional. The court is expected to rule by the end June. U.S. ASYLUM - PROCESSING: The court seemed likely to rule for the Trump administration's defense of its authority to reject asylum seekers if officials deem U.S. - Mexico border crossings to be too overloaded to handle more claims. On March 24, the court heard arguments in a dispute over a policy known as "metering," which Biden's administration dropped in 2021. The Republican president may want to reinstate it. It allowed U.S. Immigration officials to stop asylum seekers and refuse to process their applications indefinitely. The decision is expected to be made by the end June. WEEDKILLER CAUSES CANCER The court seemed divided on Bayer AG’s efforts to stop thousands of lawsuits alleging that the German company failed to warn users of the dangers of the active ingredient of its Roundup weedkiller. On April 27, the court heard arguments in Bayer’s appeal of a Missouri state court jury verdict awarding $1.25million to a man called John Durnell, who claimed he had been diagnosed with non-Hodgkin's lymphoma following years of exposure. Bayer's claim that U.S. pesticide law prohibits lawsuits based on state laws was rejected by the lower court. The court is expected to rule by the end of June. Human Rights Abuses Around the World The court heard arguments in April 28 on a case that has broad implications for American human rights litigation. Members of the Falun-Gong spiritual movement have accused Cisco Systems, in a long running lawsuit, of facilitating religious persecusion in China. Cisco appealed the 2023 ruling of a lower court that gave new life to the 2011 lawsuit brought under the Alien Tort Statute of 1789 that accused the company of developing technology which allowed China's Government to monitor and persecute Falun-Gong members. Cisco asked the court to limit the scope the Alien Tort Statute which allows non-U.S. Citizens to sue in American courts over violations of international laws. The court is expected to make a ruling by the end June. SEC "DISGORGEMENT" POWER On June 4, the court rejected a challenge against the U.S. Securities and Exchange Commission’s broad authority to recover illicit profits through a financial remedy known as disgorgement. This strengthened one of the key powers of the Wall Street watchdog. The court upheld the decision of a lower-court that had supported a broad use of disgorgement powers by the SEC. In this case, the Trump administration defended the SEC. The SEC was defended by the Trump administration in this case. FCC FINES FOR WIRELESS CARRIERIES The Supreme Court ruled on June 4, defending the Federal Communications Commission system of levying fines and ruling against AT&T's and Verizon's challenge against the agency. Trump's administration defended FCC's system of assessing financial penalties known as forfeiture order. The carriers argued that FCC's internal proceedings deprived them their right to a trial by jury under the U.S. Constitution. 'GEOFENCE" WARRANTS On April 27, the court heard arguments in a Virginia case about whether or not law enforcement's use a "geofence warrant" to identify suspects using data from?cellphones near crime scene violates Fourth Amendment's bar on unreasonable searches. Geofence warrants approved by the court compel companies, such as Alphabet’s Google, to search for mobile devices near crime scenes around the time of the crime. In this case, a defendant pleaded conditionally guilty to robbing an institution of higher learning while reserving the right to argue against evidence obtained from what he believes was an illegal search. The ruling is expected to be made by the end June. CRISIS PREGNANCY COUNTER The court sided on April 29, with the operator in New Jersey of Christian faith-based "crisis pregnancies centers" that are anti-abortion and trying to obstruct a state probe into whether these facilities engage in misleading practices. First Choice Women's Resource Centers brought a federal suit against a subpoena issued by the state attorney general in 2023 seeking information about the organization's doctors and donors. A lower court had dismissed the lawsuit. First Choice's facilities are designed to discourage women from getting abortions. RASTAFARIAN INMATE The conservative justices seemed inclined to reject the Rastafarian inmate's attempt to sue Louisiana state prison officials after they shaved his head in violation of religious beliefs. On November 10, the case was brought before the court under a federal statute protecting incarcerated persons from religious discrimination. Plaintiff Damon Landor's religion requires that he let his hair grow. He appealed the decision of a lower court to dismiss his lawsuit, because they found that the statute in question did not allow him to sue officials individually for monetary damage. The ruling is expected to be made by the end June. DEATH ROW INMATE A man convicted in Alabama of a murder committed in 1997 was spared the execution on May 21, after the court upheld a ruling that the inmate has intellectual disabilities and is therefore ineligible to receive the death sentence. Alabama officials appealed a lower court's method of determining Joseph Clifton Smith’s intellectual capacity. The justices rejected the appeal. This method involved weighing the multiple intelligence quotient (IQ) test scores along with expert testimony. In a 2002 Supreme Court decision, the court ruled that executing a person with intellectual disabilities violated the Eighth Amendment of the U.S. Constitution prohibiting cruel and unusual punishment. JURY COMPOSITION On May 28, the justices sided with an inmate on death row who claimed that prosecutors had discriminated against him by excluding Black potential jurors in a trial where he was found guilty in 2006 of his involvement in the murder?of a supermarket owner. The justices found that the state courts of Mississippi had not evaluated Terry Pitchford’s claim that four Black prospective jurors were unlawfully dismissed, in violation a 1986 Supreme Court precedent called Batson v. Kentucky which prohibits exclusion based on race. SENTENCE REDUCTIONS The court ruled that on May 28, judges could not order early release of prisoners based on the fact that they would receive shorter sentences following the 2018 criminal justice reform law. The court upheld lower-court decisions against two Pennsylvania men who were convicted of armed burglaries and sought compassionate release on the basis of the First Step Act that Congress passed many years after their sentences. SECURITIES LITIGATION The court sided on June 11, with a group investment funds affiliated to BlackRock and other asset management firms in their attempt to defend against certain lawsuits filed by private plaintiffs, under a federal securities law. The court reversed an earlier ruling allowing hedge fund Saba Capital Master Fund, to sue the Investment Company Act of 1980 to invalidate fund bylaws that restricted the voting rights of activist shareholders. The Trump administration backed BlackRock and FS Credit Opportunities, as well as other funds in the case including Adams Diversified Equity Funds, Adams Natural Resources Funds and Royce Global Trust. COX COPYRIGHT DISSENSION The court ruled that Cox Communications could not be held responsible for the piracy of songs by subscribers to its internet service. These labels included Sony Music, Warner Music Group Universal Music Group, and others. This ended their multi-billion dollar music copyright suit. The ruling of 9-0 overturned the decision by a lower court to order a trial to determine the amount the internet service provider was liable for the record labels under a form liability known as contributory copyright violation. Cox said that a retrial would have resulted in a verdict of up to $1.5 billion against the Atlanta ISP. PHARMACEUTICAL SKINNY LABELS The court ruled that the generic version of Amarin Pharma Vascepa, a cardiovascular medication made by Hikma, did not violate Amarin Pharma patents. This decision could make generic drugmakers more resistant to patent suits involving "skinny label" claims. The justices reversed a decision by a lower court in favor of Amarin. Generic drugmakers argued that Amarin's victory in the case could have deterred them from producing and selling their cheaper drugs, and raised U.S. drug costs.
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Gold prices rise as inflation pressure is reduced by the soft US employment report
Gold prices remained nearly unchanged despite hitting a six month low on Thursday. This was due to a weak U.S. employment report, which offset the pressure of strong inflation data. It also increased expectations for higher interest rates in advance of the Federal Reserve meeting next week. At 11:27 am, spot gold was unchanged at $4.081.99 an ounce. ET (1527 GMT), having hit its lowest level since late November during the earlier session. U.S. gold futures for August were down 0.7% to $4,103.60. Data revealed that U.S. Weekly Jobless Claims?rose to 22,99,000 for the week ending June 6, exceeding expectations of 219,000. David Meger of High Ridge Futures, director of metals and trading, said that a weaker job market would support gold prices. He added that "we have seen?inflationary pressures increase both yesterday and today; the potential for higher interest rates has supported the dollar and pushed the gold market." U.S. producer price increases were higher than expected in May. Data on Wednesday also showed that U.S. consumer prices rose at their fastest rate in three years in the month. Since the U.S. and Israel war against Iran began in late February, spot gold has been under pressure as rising oil costs fuel expectations of high interest rates for a prolonged period. Gold is often viewed as a hedge to inflation but higher interest rates can weigh down on the metal. Investors are awaiting the Fed meeting next week, Kevin Warsh's inaugural as chairman. Rates are expected to remain unchanged. According to CME Group's FedWatch, traders are currently pricing in a 69% probability of an increase in the U.S. interest rate by?December. The U.S. and Iran exchanged air strikes on the geopolitical scene, with President Donald Trump threatening further strikes if Tehran did not agree to an immediate 'peace deal. Iranian sources claim that talks have intensified on a preliminary agreement. Silver spot rose 0.5%, to $64.04 an ounce. Platinum gained 0.6%, to $1674.76. Palladium rose 3.1%, to $1252.99. (Reporting and editing by Jonathan Ananda in Bengaluru, Anushree mukherjee in Bengaluru, Noel John)
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Dollarama's sales continue to grow, topping quarterly estimates
Dollarama, a discount retailer in Canada, beat its quarterly profit and sales estimates on Thursday. Cost-conscious shoppers sought out Dollarama for low-cost essentials. Its shares rose 7% at the start of trading. The high cost of gasoline linked to the Middle East war has put pressure on household budgets. Walmart, Target and Dollar Tree, as well as Dollar General, Dollar Tree, and other discount retailers in the United States have flagged a cautious environment for spending over the past few weeks. Dollarama also forecast a 3%-4% growth in comparable sales for the year. CEO Neil Rossy said: "We expect that our strong value proposition will continue to resonate with customers." The Reject Shop, a discount chain in Australia, was purchased by the company to expand their business outside of Canada. The company also operates in Mexico via its Dollarcity subsidiary which continues to grow. Brian Morrison, TD Cowen's analyst, said: "Progress in Mexico and Australia confirms our?view that the business model can be portable and they are the next engines for outsized growth." Dollarama reported net sales of C$1.85 ($1.32 'billion) in the?first three months, compared to analysts' estimates of C$1.82?billion, according to LSEG data. It reported quarterly earnings of C$302.3 millions, or C$1.11 per?share for the three months ending May 3. This compares to C$273.8million, or C$98 Canadian cents, per?share from a year earlier. The company's earnings were C$1.05 on a?adjusted base, compared with the expected 99 Canadian cents. (1 Canadian dollar = 1.3981 dollars) (Reporting and editing by Vijay Kishore in Bengaluru)
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Gold prices rise as inflation pressure is reduced by the soft US employment report
After hitting a six month low on?Thursday?, gold prices remained largely?stable? as the strong inflation data offset the pressure of a weak U.S. jobs survey. This also increased expectations for higher interest rates in advance of next week?s Federal Reserve meeting. At 9:17 am, spot gold was unchanged at $4.076.88 an ounce. ET (1317 GMT), having hit its lowest level since November 21, earlier in the session. U.S. gold for August delivery was down 0.9% to $4,097.10. The data showed that U.S. Weekly Jobless Claims? rose to 229,000 in the week ending June 6, exceeding expectations of 219,000. David Meger of High Ridge Futures, director of metals and trading, said that a weaker job market would support gold prices. He added that "we have seen?inflationary pressures continuing to rise, both yesterday and today; the potential for higher rates has supported the dollar and pressed the gold market." U.S. producer price increases were higher than expected in May. Data on Wednesday also showed that U.S. consumer prices rose at their fastest rate in three years in the month. This was boosted by surging energy prices. Since the U.S. and Israel war against Iran began in late February, spot gold has been under pressure as rising oil prices fuel expectation of long-term high interest rates. Gold is seen as a hedge against rising inflation but higher interest rates can weigh down the metal. Investors await the Fed meeting next week, Kevin Warsh's inaugural as chairman. Rates are expected to remain unchanged. According to CME Group's FedWatch, traders currently "price" a 69% probability of an increase in the U.S. interest rate by December. The U.S. and Iran have traded air strikes on the geopolitical scene, with President Donald Trump threatening further strikes if Tehran does not immediately agree to a 'peace pact. Iranian sources say that talks have intensified on a preliminary agreement. Silver fell by 0.3% per ounce to $63.52, platinum rose 0.4% to 1,670.85 dollars, and palladium increased 1.7% to $1236.58. (Reporting and editing by Thomas Derpinghaus, Jonathan Ananda and Noel John from Bengaluru)
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Mukesh Ambani's Reliance Group enters Mumbai slum redevelopment sector
Reliance Group, owned by Indian billionaire Mukesh Ambani, has won the bid to redevelop Dharavi, a slum of 101.4 acres in western Mumbai. This is its first entry into a market where Adani Group, a rival, is already redeveloping Dharavi, one of Asia's largest slums. The Mumbai-based Slum Rehabilitaion Authority announced late Wednesday that a consortium led by Reliance 4IR Real Estate?Private Limited won the bid to develop the Juhu Galli cluster of slums in Andheri. It said that the project will deliver over 28,000 homes of rehabilitation for those who are eligible and currently live in Juhu Galli. JSW Group, a metals giant, and Shapoorji Pallonji Group also submitted bids. Slum rehabilitation in Mumbai was traditionally handled by mid-sized developers working under the Slum Rehabilitation Authority. Projects were often delayed due to fragmented landholdings or the need to obtain consent from residents. Maharashtra, which is under the Bhartiya Janata Party of Prime Minister Narendra modi, has made policy changes in recent years that have brought large conglomerates into the sector. In November 2025 the?state announced the new framework for redevelopment of slum clusters, which allows developers to develop large contiguous lands of at least fifty acres without the need of consent from residents. Developers can also benefit from higher building limits and additional rights to develop, allowing them to create more space for sale once the slums are redeveloped. Reliance must pay 7 billion rupees (73 million dollars) to the Slum Rehabilitation Authority over the next two years in order to cover the temporary rents of the residents. The authority also said that it must?deposit an additional?one-year of temporary rent costs, and a performance warranty of 1 billion rupees (about $10 million) to cover the residents' temporary rentals. The Slum Rehabilitation Authority stated that "the successful bidding process shows the growing interest among India's top corporate houses to partner with the government in order to tackle Mumbai's housing issues through large-scale redevelopment projects." Adani Group was awarded the contract to transform the Dharavi Slum in Mumbai by 2023. However, the project has been plagued with legal issues, and residents have protested. (Reporting and editing by Susan Fenton; Dhwani Paandya)
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ROI-Red-hot SpaceX IPO may burn retail buyers: McGeever
The media frenzy around Elon Musk's SpaceX's public listing is raging. This poses a serious risk to investors, especially retail investors. In a large initial public offering (IPO), the share allocation to small investors is typically less than 10%. Large institutional investors are left with the majority of newly listed shares. This is a good thing for small investors, as a new launch can be a flop during the first few days of trading or highly volatile in weeks and months to come. Large institutions have deep pockets and the ability to tolerate market volatility. They also have a high threshold for loss. Retail investors cannot expect to experience the same level of risk. SpaceX's IPO is not typical, and it's not just the $1.75 trillion valuation. Retail investors will receive around 30% of $75 billion worth of shares. This leaves people more vulnerable to price volatility and volatility than normal. RED FLAGS There has never been a better time for individuals to participate in a major IPO. Fidelity Investments took the unprecedented step of lowering their eligibility requirements for participating in an IPO, from $500,000 to only $2,000. Robinhood Markets clients, SoFi customers, and E*Trade clients are not required to have any money in their account, whereas Charles Schwab requires a minimum of $100,000. Small investors may be lured in. Retail flows tracker Vanda Research reports that the usual increase in equity purchases after U.S. Tax returns in April was tepid. This could be because some investors were raising liquidity in anticipation of the SpaceX IPO. Retail investors should be wary of large tech IPOs. Sam Grelck is an equity strategy analyst with Truist Advisory services. He has tracked 30 tech-related IPOs in the last 15 years. His findings indicate that a significant drop within SpaceX?s first year of trading is highly probable. Within 12 months after the first day of trading, shares in each of these 30 companies experienced a double-digit drop. Some of the drawdowns reached as high as 90%, while the average was only 55%. He advises investors to be ready for "elevated volatility" and possible significant drawdowns, when investing in new listings. His findings show, however, that even if the performance is uneven, returns are positive for the first three month following the IPO. The returns over six and twelve months tend to be negative. The ride is always bumpy. BOLD ASSUMSIONS Will SpaceX's ride be smoother? The numbers that support the IPO seem to suggest otherwise. Goldman Sachs, one of the underwriters for the IPO, estimates that by 2030, total revenue will grow from $18.7bn to $474bn, and its AI segment's revenue will increase 100 times to $322bn from $3.2bn. Anthony Saglimbene, Ameriprise's chief market strategist, says: "By any reasonable measure that is a bold assumption." Morgan Stanley analysts, who are also underwriters, have forecast that total revenue will reach $3.4 trillion in 2040. SpaceX waived the requirement that employees wait for six months to sell their shares. Analysts warn that early investors and employees could profit from their positions by selling shares to retail investors. A rush of sales from insiders of a company could be met by a wall of?buying?from individual. It might not be, and many retail investors may suffer big losses during a downturn while sophisticated shareholders leave early. At the top? Many analysts warn that, on a broader level, the mania around the SpaceX IPO signals that the?top of the market is now. Of course, not everyone is in agreement. Noah Weisberger is the chief U.S. Equity Strategist at BCA Research. He notes that only 20% of mega IPOs occur during market peaks. The previous mega-IPO wave is nothing compared to what's coming up in the next few months. SpaceX will be launching a monster IPO, followed by AI darlings OpenAI & Anthropic whose offerings are expected to reach $1 trillion valuations. Retail interest in other mega-public?listings is sure to skyrocket if?SpaceX proves a success. If it fails, those who invested their?savings in the largest IPO ever will be searching for shelter. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets seven days a weeks.
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US producer prices rise more than expected in may amid a jump in energy costs
The Middle East conflict has driven up the price of energy products, resulting in a?largest annual gain in three-and-a half years. The Labor Department's Bureau of Labor Statistics announced on Thursday that the?Producer Price Index?for?final Demand?advanced 1.1%?last month?after a downwardly-revised 1.1% surge in March. The economists polled had predicted the PPI would rise 0.7%, after an earlier reported 1.4% increase in April. The PPI rose 6.5% in the year to May, which is the highest increase since November 2022. Nearly 80% of PPI's rise was due to a 2.8% increase in goods prices, mainly energy products. Prices of?services rose by 0.3%. Fuel prices have risen due to the U.S. and Israeli war against Iran. This includes gasoline and diesel. The Strait of Hormuz shipping restriction has strained global?supply chain, leading to shortages of a variety of goods including fertilizers and aluminum. On Wednesday, the government announced that consumer prices rose above 4% for the first three-year period. In order to achieve its inflation target of 2%, the U.S. Central Bank tracks Personal Consumption Spending price indexes. Financial markets have priced in an increase of the Federal Reserve's rate due to rising inflation and labor market stability. The bar for tightening policy is high, say economists. They argue that the oil price shock has so far been confined to transportation. At its next meeting, the U.S. Central Bank is expected to maintain its benchmark overnight interest rates in a range of 3.50%-3.75%. The Fed is expected to abandon its easing policy, but economists are not so sure. After the CPI report was released, economists predicted PCE inflation would?increase by 0.4% in may after?rising at the same rate in April. Forecasts for PCE inflation were forecast to rise 4.0% over the 12-month period ending in May. This would be the biggest increase since May 20,23. It had risen 3.8% in April. Reporting by Lucia Mutikani; Editing and proofreading by Andrea Ricci
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KKR creates $10 billion AI Infrastructure Company with Nvidia and Vistra
A KKR led group launched a new 'company' on Thursday with more than 10 billion dollars in?committed?capital to finance the buildout of AI -infrastructure. This is the latest attempt?by a alternative -asset -manager to capitalize on the growing demand for AI-services. Kuwait Investment Authority (KIA), AI chip giant Nvidia, and utility firm Vistra, are all anchor investors in Helix Digital Infrastructure. The company is led by Adam Selipsky, former Amazon Web Services CEO. The surge in U.S. construction of data centers has caused a shortage of electronic components and strain on power supplies, slowing the development of key facilities for Big Tech's AI goals. Private equity is a funding source for this industry because of?the rising costs and the?growing size of projects. Apollo and Blackstone announced on Tuesday that they will finance a $35 Billion expansion of AI capability for Anthropic by using Broadcom's customized chips as part a new partnership. Vistra, a preferred power supplier, will replace Nvidia as the preferred AI datacenter designer. Helix 'can add more institutional investors once the founding 'commitments have been?closed. KKR said that their infrastructure platform, which manages assets worth over $100 billion, includes $70 billion across digital and power. Selipsky stated that "large users of digital infrastructure need to reduce complexity in order to unlock new capacities." He left his position as AWS's chief in May 2024 after having doubled the division's operating profit and sales since he was appointed in 2021. (Reporting by Anhata Rooprai in Bengaluru; Editing by Shilpi Majumdar)
The US military would be at risk if they were to take Kharg Island
Donald Trump stated on Thursday that he wanted to seize Kharg Island, the?Iran oil infrastructure hub. Analysts believe the U.S. could seize the Island 'quickly', but that the move would put U.S. soldiers in danger and could prolong the war rather than shorten it.
Where is Kharg Island and why is it important?
Kharg Island is located in the northern Gulf about 400 km (483 miles) north of the Strait of Hormuz. It is located in water that is deep enough for tankers to dock, even if they are too big to reach the shallow waters of the Iranian coast.
Before the start of the war on February 28, 90% of Iran's oil was exported from this island. Seizing the island would disrupt Iran's oil trade and put enormous pressure on Tehran. Iran is the third-largest producer of oil in the Organization of Petroleum Exporting Countries.
What is the'state of play?
U.S. forces conducted strikes against Kharg between March and April. Trump claimed that they had "totally destroyed" all military targets and suggested they could target the oil infrastructure next. U.S. officials said at the time that the administration was considering whether or not to send ground troops to the island.
Kharg hasn't been attacked since then, but the United States continues to blockade Iranian ports and has targeted oil tanks near the island.
Trump said on Thursday that he would "like" to take over the oil hub but did not give any specific plans.
"My preference was always to take Kharg Island... that's my preference." "I don't think America can stomach it," he said to Fox News.
The war has already severely reduced Iran's oil exports.
CAMERA-WIRING DRONES
Experts said that U.S. forces could seize the island fairly quickly. However, this would not necessarily result in a swift and decisive ending to the war.
In March, Ryan Brobst and Cameron McMillan from the Foundation for the Defense of Democracies stated that a seizure or occupation of Kharg Island would be more likely to escalate and prolong the war rather than to bring about a decisive victory.
They claimed that U.S. soldiers would be subjected to missiles and drone attacks. This could include "first-person-view drones", which are used by millions of people in Ukraine.
They said that if the Iranian regime were to launch a successful attack, they would release online videos showing the deaths of American soldiers.
TROOPS WILL NEED BACKUP Former commander of U.S. Central Command Joseph Votel told TWZ.com that 'while only 800-1,000 troops will be needed to hold Kharg Island they would also need logistical support and protection.
Votel stated that the troops would be vulnerable and he doubted if capturing the island would give any tactical advantage. He called it "odd", but the U.S. would do it if necessary. (Reporting and editing by Andy Sullivan and William Maclean; reporting by David Brunnstrom)
(source: Reuters)