Bloomberg — Week of 2026-05-22 to 2026-05-29#

Story of the Week#

The global economy hung on every diplomatic overture this week as the US and Iran hammered out a tentative 60-day ceasefire to reopen the strategic Strait of Hormuz after a grueling six-week blockade. Despite mid-week military flare-ups and conflicting official statements, the pending agreement ultimately sparked a broad market rally, sending US equities to record highs and sharply retreating oil prices as fears of a prolonged energy shock ebbed.

Markets & Economics#

[Global Central Banks Confront Sticky Inflation] · Led by newly sworn-in Fed Chair Kevin Warsh, global policymakers pushed back against rate-cut hopes as the Iran conflict keeps energy-driven price shocks rippling through the economy. European Central Bank officials explicitly signaled a June rate hike following surprise inflation jumps in France and Spain, while South Africa delivered its first hike since 2023.
Japan Used Record $73.6 Billion to Support Yen in Past Month · Japan deployed an unprecedented ¥11.73 trillion to prop up its currency after it slid past 160 per dollar, marking Tokyo’s first direct market intervention since 2024.
[AI Frenzy Mints Trillion-Dollar Memory Chipmakers] · SK Hynix and Micron Technology both surged past $1 trillion market valuations as relentless artificial intelligence infrastructure demand drives record corporate earnings momentum. The boom lifted Taiwan to become the world’s fifth-largest stock market and helped push the S&P 500 toward Goldman Sachs’ newly elevated year-end target of 8,000.
[Bellwether Industrial Metal Copper Is Trading Like an AI Stock] · Copper broke its traditional correlation with the global industrial economy, surging instead on massive bets that skyrocketing power consumption for AI data centers will overwhelm grid capacity.
[Canada Dips Into Technical Recession for First Time Since 2020] · The Canadian economy slipped into a technical recession in the first quarter, driven primarily by weak business and government spending.

Business & Industries#

[SpaceX Lowers Valuation Target Amid Pre-IPO Euphoria] · Elon Musk’s SpaceX successfully deployed dummy satellites with its Starship rocket and officially kicked off its highly anticipated IPO roadshow, though it slightly reduced its valuation target from $2 trillion to at least $1.8 trillion. The broader space sector rallied, momentarily halting only when a rival Blue Origin rocket exploded on a Florida launchpad.
[A Flurry of Multi-Billion Dollar Megadeals] · Dealmaking accelerated across sectors, highlighted by Tilman Fertitta’s $5.7 billion all-cash takeover of Caesars Entertainment and Pfizer’s $10.5 billion oncology pact with China’s Innovent. In healthcare, Eli Lilly pivoted beyond obesity with a $3.8 billion vaccine acquisition spree.
[BP Removes Chairman Manifold Over Governance Concerns] · BP Plc ousted Chairman Albert Manifold with immediate effect citing serious conduct concerns, allegations that Manifold aggressively disputes as a “false narrative”.
Chrysler Reverses Luxury Strategy, Turns to $30k Models · Amid crushing vehicle inflation, Stellantis is abandoning its luxury-first strategy for Chrysler, pivoting back to affordable sub-$30,000 SUVs to reclaim mainstream American car buyers.

Policy & World#

[Judge Pauses Action on Trump’s $1.8 Billion Fund Amid Challenges] · A federal judge temporarily blocked payouts from the Justice Department’s controversial $1.776 billion “Anti-Weaponization Fund” following bipartisan backlash and lawsuits alleging it serves as a slush fund for political allies and January 6 rioters.
[Paxton Crushes Cornyn in Texas Race After Winning Trump Nod] · In a costly primary runoff, Trump-backed Texas Attorney General Ken Paxton scored a blowout victory over four-term incumbent Senator John Cornyn, underscoring the former president’s enduring grip over the GOP base.
[Ebola Outruns Containment in Eastern Congo] · The WHO warned that a deadly Ebola outbreak is overwhelming health responders in the Democratic Republic of Congo and spreading to Uganda, exacerbated by severe vaccine shortages and a 99% collapse in US public health aid to the region.
[Trade Tensions Mount Between China and the West] · China is slow-walking Airbus deliveries to pressure Europe into certifying its Comac jets, while simultaneously warning of retaliation against potential EU export curbs. Concurrently, US lawmakers are weighing legislation that could ban Mercedes-Benz due to its partial Chinese ownership.

Opinion & Analysis#

[The C-Suite Throws Corporate Governance Out With the Garbage] · Bloomberg Opinion criticizes the “controlled company” structure of the upcoming SpaceX IPO, warning that granting Elon Musk 85% voting control and an exemption from independent board oversight strips away vital investor guardrails.
[The Pope Speaks Up for Humans, not Humanoids] · Pope Leo XIV’s inaugural encyclical delivers a morality check on the unchecked advance of artificial intelligence, calling on global leaders and big tech to disarm the technology’s moral threats in a major intervention against “robot overlords”.