Bloomberg — 2026-05-15#

Lead Story#

Global bond markets are facing a relentless selloff as surging oil prices tied to the Iran war exacerbate inflation fears, pushing yields to multi-year highs and driving the US 30-year Treasury yield to its highest level since 2007. The historic rout has stalled a record-breaking global equities rally and sets up an immediate, critical test for incoming Federal Reserve Chair Kevin Warsh, as traders brace for central banks to keep interest rates elevated for longer than previously anticipated.

Markets & Economics#

• Gilts Slump as Investors Brace for Burnham Challenge to Starmer: The British pound is on track for its worst week since 2024 against the dollar, and UK gilts tumbled, after Manchester Mayor Andy Burnham secured a path to challenge Keir Starmer for the prime minister’s job. The looming leadership battle threatens fresh political instability and raises the prospect of more expansive fiscal policy.
• Yen’s Week-Long Slide Puts Traders on Guard for Intervention: Currency traders are on high alert for market intervention by Japan following a 1% slide in the yen this week, pushing it to 158 per dollar. Frequent and curious spikes in the currency have traders gaming out potential “warning shots” from Japanese authorities.
• Bitcoin Dips Below $79,000 as Inflation Fears Hit Risk Assets: The broader selloff in risk assets has swept up cryptocurrencies, pushing Bitcoin below $79,000 as high oil prices and inflation anxiety rattle jittery investors. The slump coincides with Kraken cutting 150 workers and potentially delaying its IPO to 2027 amid the digital-asset decline.
• Japan Producer Prices Jump by Most Since 2014, Backing BOJ Hike: Corporate goods prices in Japan surged in April by the most in 12 years, driven by inflationary pressures from the Iran war. The data strengthens the case for the Bank of Japan to raise interest rates.

Business & Industries#

• SpaceX Picks Nasdaq as Listing Venue for IPO: Elon Musk’s SpaceX is preparing to file publicly for its long-awaited initial public offering as soon as Wednesday, reportedly tapping Nasdaq as its listing venue.
• Berkshire Boosts Alphabet, Exits Amazon in CEO’s First Quarter: In his first quarter as CEO of Berkshire Hathaway, Greg Abel boosted the conglomerate’s holding in Alphabet Inc. while completely exiting its position in Amazon.com. Berkshire also sold about $8 billion worth of Chevron Corp. shares as the oil giant’s stock hit a record high.
• Adani Nears End Of US Legal Troubles: Gautam Adani and his nephew agreed to pay $18 million to settle SEC allegations, while the DOJ moves to drop parallel fraud charges against them. With its US legal troubles easing, the Indian conglomerate is reviving plans to raise about $1 billion through a dollar-denominated bond.
• Power Systems Maker for Data Centers Erock Files for US IPO: Erock Inc., a modular power systems manufacturer catering to the booming data center market, filed for a US IPO, revealing increasing revenue alongside widening losses.
• GameStop’s $56 Billion eBay Tilt Has Some Tricky Fine Print: GameStop Corp.’s highly ambitious $56 billion takeover approach for online auctioneer eBay Inc. is facing skepticism over complex terms and conditions buried in the fine print.

Policy & World#

• Xi and Trump Map Out a New Framework: President Donald Trump concluded his two-day summit with Chinese President Xi Jinping, yielding agreements to stabilize trade, potential multi-billion-dollar agricultural purchases, and promises of Boeing aircraft orders. However, the leaders departed with no major breakthroughs on ending the Iran war, and Trump remained notably noncommittal on a pending $14 billion arms sale to Taiwan.
• Oil Demand Growth Faces Biggest Hit Since Covid on Iran Supply Shock: The ongoing war in Iran has shattered the Persian Gulf’s reputation as a safe operating environment, prompting major forecasters to slash global oil consumption expectations. As a countermeasure, India is partnering with the UAE to build strategic crude stockpiles, while Pakistan leverages its diplomatic clout to secure Persian Gulf LNG.
• Canada Strikes Deal to Start Building New Oil Pipeline in 2027: Prime Minister Mark Carney and Alberta Premier Danielle Smith reached a compromise on carbon pricing that clears the way for constructing a new oil pipeline to Canada’s west coast starting in 2027. Enbridge Inc.’s CEO quickly expressed support, stating the company would “definitely consider” backing the project.

Opinion & Analysis#

• Why SocGen’s Albert Edwards Sees Double-Digit Inflation Coming Back: Famed Société Générale bear Albert Edwards argues that markets remain too complacent, warning that a return to double-digit inflation is in the offing.
• America Is Addicted to Disposable Work: More than one-third of US workers are currently employed by companies with little to no stake in their long-term future, an expanding trend that highlights the economic pitfalls of treating labor as entirely disposable.
• Keir Starmer Has One Last Gambit: Project Fear: With his back against the wall amid a Labour revolt, UK Prime Minister Keir Starmer’s last line of defense against challengers like Andy Burnham is to warn voters and markets that the cost of ousting him would be too stratospherically high to bear.