Bloomberg — 2026-05-26#

Lead Story#

The geopolitical standoff in the Middle East continues to whip global markets as US and Israeli jets struck Iranian vessels in the Strait of Hormuz, just hours after President Donald Trump touted progress on an interim peace deal. Despite the fresh military hostilities, equities climbed and Treasuries rallied across the curve as investors clung to optimism that an agreement to reopen the vital shipping waterway is imminent.

Markets & Economics#

• SpaceX IPO Fuels Space Sector Euphoria: Space-related equities surged as Elon Musk’s SpaceX began its highly anticipated initial public offering roadshow following a successful Starship launch. The enthusiasm spilled over to adjacent firms like nuclear-fission startup Oklo and defense engineering company Applied Aerospace, which is seeking up to $682.5 million in its own impending IPO.
• Taiwan Overtakes India in Market Value: Powered by a relentless rally in the world’s largest chipmaker, Taiwan Semiconductor Manufacturing Co., Taiwan officially surpassed India to become the world’s fifth-largest stock market.
• ECB Officials Signal June Rate Hike: European Central Bank Executive Board member Isabel Schnabel and Chief Economist Philip Lane both indicated that the central bank will likely raise interest rates next month. Lane noted the ECB is also poised to lift its quarterly inflation projection as the ongoing Middle East conflict keeps energy prices elevated.

Business & Industries#

• Eli Lilly Unveils $3.8 Billion Vaccine Deal Spree: Expanding its ambitions far beyond its blockbuster obesity franchise, Eli Lilly & Co. agreed to buy three clinical-stage vaccine developers—Curevo, LimmaTech Biologics, and Vaccine Company—for up to $3.8 billion. The multi-company acquisition marks a major push to establish the drugmaker as a new leader in the infectious disease space.
• Ferrari’s First EV Draws Investor Backlash: Shares of the Italian supercar maker tumbled nearly 8% in Milan trading after critics and investors heavily panned the design of the “Luce”. The brand’s first fully electric, five-seat vehicle is priced at €550,000 and marks a sharp aesthetic break from Ferrari’s fuel-burning heritage.
• Energy Giants Weigh Venezuela Return: Exxon Mobil Corp. and ConocoPhillips are actively seeking durable contract safeguards and paths to recoup billions in old debts as they consider re-entering Venezuela’s oil sector after exiting the country two decades ago.
• BP Removes Chairman Manifold: BP Plc’s board ousted Chairman Albert Manifold with immediate effect over “serious concerns” regarding his conduct, oversight, and governance standards. Manifold has publicly disputed the accusations of wrongdoing, characterizing his surprise departure as based on a “false narrative”.

Policy & World#

• Texas Senate Primary Reaches Costly Climax: In what has become one of the most expensive primary battles in US Senate history, Texas Republican voters cast their final ballots in a bitter runoff. The vitriolic showdown pits incumbent Senator John Cornyn against Trump-backed state Attorney General Ken Paxton.
• South Korea Unveils Nuclear Submarine Roadmap: Seeking greater military autonomy in the region, South Korean President Lee Jae Myung convened a new defense strategy council and unveiled plans to develop and deploy locally built, nuclear-powered submarines by the late 2030s.
• WHO Warns Ebola Epidemic Outpacing Containment: The World Health Organization warned that an Ebola outbreak in the Democratic Republic of Congo is spreading faster than responders can manage amid intensifying conflict in the country’s east. In response, researchers are racing to begin production of an experimental vaccine developed by the Oxford Covid-19 team.

Opinion & Analysis#

• How Barnes & Noble Became Private Equity’s Most Radical Retail Experiment: Turnaround CEO James Daunt has successfully transformed the dying bookstore chain into a private equity darling by abandoning the standard corporate playbook. However, his latest commentary on artificial intelligence suggests he remains “every bit a capitalist” with an eye on an eventual IPO.
• The Pope Speaks Up for Humans, not Humanoids: Bloomberg Opinion’s newsletter explores Pope Leo’s unprecedented encyclical targeting the moral threats of artificial intelligence. The message serves as a major morality check on the “threat of robot overlords” and specifically calls on global leaders and big tech executives to disarm the technology’s unchecked advance.