Bloomberg

Lead Story

The US military launched fresh airstrikes against Iran in retaliation for the downing of an American AH-64 Apache helicopter off the coast of Oman, posing a severe new threat to the region’s fragile peace. While President Donald Trump insisted peace talks remain on track after brokering a halt to separate hostilities between Israel and the Islamic Republic, the latest US intervention triggered sharp swings across asset classes. Crude oil climbed and gold extended declines as traders rapidly recalibrated the geopolitical risk premium that had only just begun to evaporate from global markets.

Markets & Economics

• Treasury Market Is Telling Kevin Warsh Rates Need to Be Higher: Bond traders are piling into positions targeting multiple Federal Reserve interest-rate hikes, sending an unequivocal message to incoming Fed Chair Kevin Warsh that rates must rise to combat persistent inflation and temper an AI-fueled boom.
• US Existing-Home Sales Jump to Highest This Year, Top Forecasts: Contract closings accelerated to an annualized rate of 4.17 million in May, offering a rare bright spot for the US economy, even as a broader index of small-business optimism tumbled to its lowest level since October 2024.
• Indonesia Delivers Off-Cycle Rate Hike to Shore Up Currency: Bank Indonesia unexpectedly raised its benchmark interest rate to support the rupiah after a selloff in stocks and bonds fueled capital outflows, with analysts warning further tightening may be necessary.
• China’s Oil Imports Plunge to Eight-Year Low on War Disruptions: Overseas oil purchases by the world’s top importer slumped as the Middle East conflict crimped supply, a sharp divergence from Chinese aluminum exports, which surged in May to fill global market shortfalls.

Business & Industries

• OpenAI Files for IPO with SpaceX Debut Well Oversubscribed: The AI giant filed confidentially for a public offering, joining a staggering $3.6 trillion AI IPO pipeline just as SpaceX prepares for a record-setting debut that has already attracted over $10 billion in institutional orders.
• GSK to Buy Nuvalent for $10.6 Billion to Expand in Cancer Drugs: The British pharmaceutical firm agreed to acquire the clinical-stage biotech company, securing a developer of targeted lung cancer treatments as it aggressively seeks to rebuild its oncology franchise.
• Intesa’s Messina Braces for Bidding War Over Monte Paschi: Intesa Sanpaolo CEO Carlo Messina signaled his readiness to address counterbids after launching a €30.6 billion ($35.3 billion) offer for Banca Monte dei Paschi di Siena, dismissing a rival merger proposal as a mere “love letter”.
• Paramount’s $110 Billion Warner Takeover Investigated by UK: Britain’s merger watchdog has formally opened a probe into Paramount Skydance Corp.’s mammoth acquisition of Warner Bros. Discovery Inc., adding steep regulatory hurdles to the media mega-deal.

Policy & World

• Xi Cements Sway Over North Korea as Kim Names China Top Priority: President Xi Jinping received an elaborate, lavish welcome in Pyongyang, where Kim Jong Un declared ties with Beijing a “top priority,” sending a clear geopolitical signal that China remains North Korea’s paramount partner over Moscow.
• Cuba Poised for Biggest US Fuel Shipment Since Cold War Embargo: Amid an acute energy crisis, a Florida trading company is in advanced negotiations to send Cuba its largest cargo of American fuel since the Eisenhower administration .
• Trump’s $100,000 H-1B Visa Fee Rejected by Judge: A federal judge struck down the exorbitant fee ordered by President Trump for H-1B applications, providing an immediate and crucial reprieve for US technology companies reliant on skilled foreign labor.
• What Rolling Back Brexit Would Mean for the UK Economy: A decade after the fateful referendum, Bloomberg Economics estimates the departure has cost the UK between 2% and 4% of GDP, though closer trade ties negotiated by Keir Starmer’s government could recover almost half of that lost output.

Opinion & Analysis

• Intesa’s Bid for Monte Paschi Is Politically Crazy: While Intesa Sanpaolo’s €30.6 billion takeover bid for Monte Paschi makes robust strategic sense for investors, the politics of further consolidating Italy’s banking sector entirely contradict the nation’s aims for market competition .
• Apple’s AI Reboot Is Making It Dependent on Google: Tim Cook’s latest software showcase reveals a striking vulnerability for the tech giant—Apple’s highly anticipated Siri revamp relies heavily on the technological infrastructure of Alphabet Inc., one of its fiercest rivals .
• China Is Planning for AI’s Job Shock. America Isn’t: Despite an already fragile labor market with high youth unemployment, Beijing is actively laying the groundwork to absorb the white-collar disruptions caused by artificial intelligence, while US policymakers are largely ignoring the impending shift .