Bloomberg

Lead Story

The United States and Iran have reached a tentative agreement to extend their ceasefire by 60 days, though the pact remains pending final approval from President Donald Trump. The proposed memorandum of understanding guarantees unrestricted shipping through the Strait of Hormuz, causing oil prices to pare their earlier gains, even as fresh US airstrikes on Iranian targets earlier in the week underscored the fragility of the truce.

Markets & Economics

• US Consumer Spending Edges Up as Inflation Accelerates: US inflation-adjusted consumer spending rose 0.1% in April, while annual inflation accelerated to its highest level since 2023 on the back of energy price spikes driven by the Iran conflict.
• Bitcoin Falls Below $73,000 Despite Trump’s Crypto Capital Push: The largest cryptocurrency fell to a five-week low below $73,000, as macroeconomic jitters and outflows from US exchange-traded funds outweighed pro-crypto legislative messaging from Washington.
• Bank of Canada Says Markets More Vulnerable to Sharp Correction: The Bank of Canada warned that while the financial system has functioned well through recent shocks, there are growing vulnerabilities linked to hedge fund activity in debt markets and a rising risk of an asset price correction.
• South Africa Poised for First Rate Hike Since 2023 on Iran War: South Africa’s central bank raised borrowing costs for the first time in three years, signaling that more policy tightening may be required to combat domestic inflationary pressures stemming from global oil shocks.

Business & Industries

• Caesars Entertainment Agrees to $5.7 Billion Fertitta Takeover: Real estate mogul Tilman Fertitta struck a $5.7 billion all-cash deal to acquire Caesars Entertainment Inc., paying $31 a share to add 52 US casinos to his expanding entertainment empire.
• Union Pacific, Norfolk Tumble as Regulator Pauses Merger Review: Shares of Union Pacific Corp. and Norfolk Southern Corp. posted their steepest slumps in over a year after a key regulator paused the review of their planned $72 billion merger, delaying the historic rail deal.
• Pfizer Inks Up to $10.5 Billion Deal With China’s Innovent: Pfizer Inc. signed a massive global agreement with Chinese firm Innovent Biologics Inc., worth up to $10.5 billion, to develop and commercialize new cancer treatments.
• Best Buy Jumps as Shoppers Snap Up Computers, Mobile Devices: Best Buy shares soared following stronger-than-expected sales, indicating that US consumer demand for electronics is defying pressures from high inflation and soaring fuel costs.
• Gap Shares Plummet After Retailer Lowers Sales Outlook: Gap Inc. shares plunged after the apparel retailer lowered its net sales growth guidance for the year, citing faltering performance at its Old Navy and Banana Republic brands.

Policy & World

• The DOJ Wants to Know Who on Reddit and X Is Criticizing ICE’s Tactics: The Trump administration’s Department of Justice is intensifying its use of grand jury subpoenas to unmask the identities of anonymous social media users criticizing US Immigration and Customs Enforcement.
• FTC Chairman Ferguson Says Agency Probing Fertilizer Industry: The Federal Trade Commission has launched an antitrust investigation into the US fertilizer industry to probe the rapid escalation in costs for American farmers.
• US Labels Brazil’s Two Main Drug Gangs as Terrorist Groups: The US is set to officially designate Brazil’s two largest organized crime syndicates as terrorist organizations, a move likely to reignite diplomatic friction between President Trump and President Luiz Inácio Lula da Silva.
• EU’s Economic Powers Seek Unity to Push Capital Markets Merger: The European Union’s six largest economies are aggressively advancing long-delayed plans for a bloc-wide capital markets union in an effort to combine their financial leverage.

Opinion & Analysis

• The Ellison Family’s $49 Billion Ask Is an Acid Test for Markets: A Bloomberg Opinion column argues that the jumbo debt package required to fund the $110 billion acquisition of Warner Bros. Discovery Inc. will serve as a crucial test of investor willingness to finance risky megamergers in a wobbling bond market.
• Polymarket’s Losers Are Discovering an Age-Old Truth: Highlighting the reality behind prediction market hype, analysts note that the top 1% of Polymarket accounts capture roughly 75% of the platform’s gains, leaving the vast majority of traders deeply underwater.
• Why the Market Isn’t Working as Trump’s Guardrail: Columnists suggest that the current lack of market volatility is unexpectedly removing the financial pressure that might otherwise force policymakers into an urgent deal over the Strait of Hormuz.