US Pending Home Sales Rebound Off Record Lows, Despite Rising Mortgage Rates

US Pending Home Sales Rebound Off Record Lows, Despite Rising Mortgage Rates

After rising in February, US Pending Home Sales were expected to continue to improve in March (+0.5% MoM) but – despite apparently rising mortgage rates – sales rose 1.5% MoM (even with February revised up to +2.5% MoM). This dragged pending home sales up to +1.8% YoY (to the highest level since Nov 2024)…

Source: Bloomberg

…extending its bounce off record lows…

Source: Bloomberg

“Contract signings rose in March despite higher mortgage rates, pointing to pent-up housing demand,” NAR Chief Economist Lawrence Yun said in a statement.

“A greater supply of inventory will help translate that demand into more home sales.”

Pending home sales in the South, the biggest home-selling region in the country, increased 3.9% in March.

They rose 4.4% in the Northeast but decreased in the Midwest and West.

While mortgage rates did pick up at the start of March (Iran War), pending home sales have been disconnected from improving ‘affordability’ in recent months…

Source: Bloomberg

As a reminder, because houses typically go under contract a month or two before they’re sold, the pending home sales data tend to be a leading indicator of closings that are captured in the monthly previously owned home sales reports.

Tyler Durden
Tue, 04/21/2026 – 10:08

via ZeroHedge News https://ift.tt/NOkcyub Tyler Durden

The COVID Reckoning Doesn’t Go Far Enough


FDA logo on fire | Illustration: Lex Villena

The public health establishment lost America’s trust during the COVID-19 pandemic with its bureaucratic incompetence, “noble lies,” and authoritarian mandates. 

It was about time. Agencies like the National Institutes of Health (NIH) and the Centers for Disease Control and Prevention (CDC) have been failing the American public for decades. But the agency with the worst track record is the Food and Drug Administration (FDA), which, long before COVID, caused Americans to lose hundreds of thousands of life years by slowing down drug development. After COVID, the American public had finally started to catch on.

President Donald Trump put a new team in charge of the federal health apparatus, some of them truth-telling contrarians who risked their careers to expose the sins of the old guard. But it’s also a messy picture because the man in charge of Health and Human Services has controversial theories about the dangers of vaccination with little factual basis.

So where does that leave things? Is the public health apparatus finally being upended? Or are the inmates running the asylum?

Nobody, no matter their integrity or political persuasion, should have the power to decide what you or I put in our bodies. The only way to fix America’s regulatory health care apparatus is to dismantle it. A new guard has replaced the old. The COVID reckoning is here. But it hasn’t gone far enough.

The FDA Power Play

The story of an overreaching public health state doesn’t begin with Robert F. Kennedy Jr. or Dr. Anthony Fauci. It begins with a law passed in 1962.

The FDA didn’t always throw up as much red tape as it does today. In its early days, its only job was to sign off on safety. Drug makers would submit safety evidence, and if the agency didn’t object within 60 days, the drug could go to market and be sold right over the counter. Back then, it was the drug company that decided whether to require a doctor’s prescription or not based on liability concerns.

This voluntary arrangement between drug manufacturers, patients, and doctors worked fairly well, says Jeffrey Singer, a practicing surgeon and senior fellow in the Department of Health Policy Studies at the Cato Institute. 

“If [the drug manufacturer] thought that their drug was a little too risky and some people could have problems and they’ll get sued, they would say to the pharmacist, we only want our product to be sold to people who have a prescription,” he says.

It was a system based on informed consent and voluntary exchange.

But federal control over pharmaceuticals started expanding in 1951, when Congress passed the Durham-Humphrey Amendment, which limited which drugs could be sold over the counter and empowered the FDA to enforce the rule.

That was just the beginning. About a decade later, a sedative called thalidomide was on the market in Europe to help pregnant women alleviate their nausea. The drug turned out to cause severe birth defects. Many fetuses died in utero or shortly after birth.

FDA medical officer Frances Kelsey had blocked thalidomide’s approval in the U.S., earning her the President’s Award for Distinguished Federal Civilian Service.

Congress reacted by passing a new law that vastly increased the FDA’s power. The Kefauver-Harris Amendments empowered the agency to hold drugs off the market until it deemed them not only safe but also effective.

Why did thalidomide lead to this vast expansion of FDA power? After all, thalidomide was quite effective, just not at all safe for pregnant mothers. The FDA already had the power to regulate drugs on safety grounds. What happened is that the thalidomide episode created a new political reality, with federal health regulators like Kelsey cast as benevolent guardians of our health and well-being.

The Kefauver Amendment, which had been languishing in Congress, suddenly had broad support. Scientists would have to use randomized controlled trials to ensure that pharmaceuticals do what they say they do.

That all sounds reasonable. But, in practice, the law had some catastrophic unintended consequences.

Roadblocks to Medical Progress

In the 1960s, healthcare was primitive by today’s standards, but as drug innovation accelerated, the FDA became a major bottleneck in the development process, with regulatory compliance adding billions to the cost of bringing new drugs to market.

One researcher coined the phrase “Eroom’s Law” to describe the dramatically falling return on investment for pharma research over time—a backwards spelling of Moore’s Law that describes the exponentially improving efficiency of computing power.

The time it takes to move a drug from discovery to sale increased from eight years in 1960 to between 12 and 15 years by 2010. Research and development costs exploded from about $100 million per drug in 1975 to $1.3 billion by 2005. Pharmaceutical innovation stagnated.

The political incentive problem the FDA faces is that the public is outraged when a harmful drug slips through but tends not to notice when a life-saving drug is blocked.

The economist Milton Friedman described this phenomenon in a 1999 interview with the Hoover Institution. “The pressure on the FDA is always to be late in approving,” Friedman said, “and there is enormous evidence that they have caused more deaths by their late approvals than they have saved by their early approvals.”

FDA regulation is a classic case of the “seen and the unseen,” as the French economist Frédéric Bastiat put it. But just because something’s invisible doesn’t mean it isn’t tragic.

Cancer researchers calculated that a five-year delay in approving a lung cancer drug with a modest one-percent cure rate would cost 282,000 life-years, while stricter trial regulations would save only 16. University of Chicago economists found that when the FDA did speed up approvals in the early ’90s, faster access saved between 180,000 and 310,000 life-years, compared to 56,000 life-years lost to drugs eventually withdrawn for safety reasons.

But in some cases, the public did catch on.

In the 1980s, AIDS patients revolted against the agency for being slow to approve various drugs, including thalidomide, the drug that caused profound birth defects in the late 1950s. It turns out the drug is also an effective anti-inflammatory that’s safe to take if you’re not pregnant. But the FDA had never approved it for use by anyone.

Most of the FDA’s destructive policies don’t inspire much of a backlash, but its policies continue to impede access to chemicals beneficial to our health. In the early 1990s, the FDA prohibited food manufacturers from touting folic acid as a useful supplement to prevent birth defects despite robust scientific literature in its favor. The FDA eventually became so convinced of its beneficial effects that it mandated that it be included as a supplement in bread, once again flexing its monopoly power to ensure that what isn’t prohibited becomes mandatory.

“FDA is a monopoly,” says Singer. “And because it’s a monopoly, there’s no room for any debate or any competing ideas.”

If you were reading Reason magazine in the 1970s, ’80s, and ’90s, you might have been aware of the unintended consequences of FDA regulation. But it wasn’t until the pandemic that the general public started to wake up to the problem.

COVID and the Old Guard of Public Health

During COVID, public health agencies from the CDC down to county health commissioners gained unprecedented power to determine what types of gatherings were permitted, what sort of business could stay open, and whether or not you had to be vaccinated to hold a job. It enforced a six-foot social distance rule that turned out to be based on…nothing.

The FDA was part of the same fiasco. Early in the pandemic, COVID test kits manufactured by the CDC turned out to be flawed and needed to be recalled. Private labs began producing their own test kits, but the FDA blocked their use, and only 40 labs nationwide had approved tests two months into the pandemic. It took almost a year to authorize at-home test kits.

The FDA was supposed to be run by scientists strictly following the evidence, insulated from the hurry and strife of politics. That turned out not to be true.

Dr. Vinay Prasad, who was part of the new guard brought in to oversee vaccine approvals at the FDA as director of the Center for Biologics Evaluation and Research, believes that before he worked at the agency, the FDA colluded with Pfizer to slow-roll the initial approval of the first COVID vaccine in order to to prevent Trump from taking credit for it before the November 2020 election.

“If somebody wants to say, ‘When was the first moment that politics played a role in this [vaccine approval] process?’ I think it was the initial release date,” said Prasad during a July 2025 FDA press conference.

Pfizer had been on track to have the data from a 40,000-person trial by mid-October, but changed the study’s endpoint at the last minute. Prasad says there was no scientific or medical basis for the change. 

“Why was the initial statistical analysis plan changed?” he asks. “Was it changed for scientific reason, a medical reason, a statistical reason? As somebody who’s been a professor of epidemiology and in medicine for 20 years, I cannot see any scientific or medical basis to change the physical plan.”

Delaying the vaccine, Prasad says, led to unnecessary deaths from COVID. “That winter was a very terrible winter,” he says, “and had the vaccine been available five weeks sooner…I think a lot of people’s lives would have been saved. So we may be talking about tens of thousands of lives. So to me, this is the original sin…this moment in time.”

That’s not the only example of politics likely shaping FDA decision making. Seven months into his term, then-President Joe Biden announced that the FDA would be approving COVID boosters—before the FDA even had a chance to review the safety data. 

“President Biden got up to the microphone and said, as of September, one month hence, we are going to offer a third dose of SARS-CoV-2 vaccine,” says Dr. Paul Offit. “Based on what data?”

Offit was a member of the FDA’s vaccine advisory committee at the time and voted against the Biden administration’s booster timeline. There was already evidence that with the COVID vaccine, there was a risk of myocarditis, which is inflammation of the heart. Two senior FDA officials resigned following Biden’s announcement, with one of them, Philip Krause, later telling Congress that the political pressure to clear the way for mandates was overbearing. 

“There was some significant circumstantial evidence that a desire to implement mandates likely had something to do with the speeding up of the review timeline,” Krause testified to Congress in 2024. “Even the perception of political influence can undermine trust in the agency, especially during a pandemic…The system is set up to permit hierarchy to overrule science.”

What if the FDA had run safety tests but had zero involvement in vaccine approval? 

Some Americans might have chosen to accept the risk of getting the COVID vaccine early on in the pandemic, before it had been tested. Others might choose to wait years for better data on its effects to surface. We should be allowed to make our own medical decisions based on our risk tolerance, vulnerabilities, and individual health profiles.

Instead, the federal government prevented many of us from trying the vaccine, and then it attempted to coerce many of us into getting it.

The Biden administration mandated that all 84 million Americans working at companies regulated by the Occupational Safety and Health Administration (OSHA) be vaccinated. The Supreme Court eventually struck down that mandate, but only after many people had already gotten vaccinated out of fear they’d lose their jobs.

Americans were catching on. If thalidomide had made federal regulators seem like trustworthy guardians of our bodily health, COVID did the opposite. It showed their fallibility, intellectual corruption, and incompetence.

“We kind of lost the trust of the American public,” says Offit. “They didn’t trust us anymore. And hence, now we have RFK Jr.”

Public Health’s New Guard

Offit is right. But the new guard is also composed of some highly qualified scientists who bravely spoke out against the public health establishment during the pandemic.

Under Trump, Jay Bhattacharya, a critic of lockdowns and the NIH, became the new director of the NIH. Marty Makary, a longtime critic of the FDA for slowing down drug development, became head of the agency. And yet both men report to RFK Jr., who, rather than depoliticize FDA decision making, injected a different politics—his own.

Four months after becoming health secretary, Kennedy fired all 17 members of the committee that makes vaccine recommendations to the CDC, replacing them with researchers who share his skepticism. 

“No one in your job has ever fired every committee member all at once,” Sen. Michael Bennet (D–Colo.) told Kennedy at a Senate hearing. “You told the American people that you were going to bring great people onto the ACIP [Advisory Committee on Immunization Practices] panel, not anti-vaxxers.”

Among the “anti-vaxxers” whom Bennet was accusing Kennedy of appointing was Robert Malone, whom Bennet says “claimed that the commonly used mRNA vaccine causes a form of AIDS and can damage children’s brains, their heart, their immune system, and their ability to have children in the future.”

Kennedy also directed the CDC to change its “Vaccines and Autism” page, which previously declared studies found “no link” between vaccines and autism, to say that the claim “vaccines do not cause autism” is not evidence-based. 

“Technically, you can never prove something didn’t happen,” says Offit, a critic of Kennedy’s rhetoric about vaccines. “But there are 24 separate studies in three continents in seven different countries showing that there’s no association between getting MMR vaccine and having autism.”

Kennedy once told podcaster Lex Fridman that he didn’t trust a single vaccine. When Fridman asked him to name any vaccines he thought were good, Kennedy replied, “I think some of the live virus vaccines are probably averting more problems than they’re causing. There’s no vaccine that is safe and effective.”

The consequences of Americans’ increasing vaccine skepticism have been measurable. The U.S. saw more annual measles cases in 2025 than at any point since 1991—including almost 1,000 cases in South Carolina and 800 in Texas, where two children died.

Though Kennedy has since made public statements encouraging families to get the measles vaccine, he told Reason in 2023 that childhood diseases like measles were “self-limiting and harmless to almost all children” and that vaccines against them prevent kids from building “your immune response against all kinds of really bad disease.” 

When the American Academy of Pediatrics stepped in to offer its own vaccine guidance, RFK threatened doctors who went against the CDC’s new childhood vaccine recommendations with legal liability.

Kennedy railed against top-down government control of medicine when the other team was in power. Now he’s using it to impose his own preferences on other people.

On the upside, the new guard has deregulated health care to some degree. At the FDA, Makary has vowed to question old assumptions, especially on approval timelines. 

“Why does it take 10 to 12 years for a new drug to come to market?” he asked on an episode of the All-In Podcast. “We’ve become so lukewarm and passive accepting that horrible timeline that it’s just become the status quo. We’ve got to challenge these deeply held assumptions.”

He’s also signaled a shift toward Bayesian methods for evaluating drug effectiveness, in which the FDA acknowledges the limits of its own knowledge and acts more like a sports bettor, synthesizing information from many sources to wager on the likelihood that a treatment works for specific patients.

The FDA not only slows down drug development, but many of the studies that do lead to drug approvals are poorly designed or inconclusive. Before coming to the agency, Prasad was one of the most trenchant critics of the FDA’s approval process, and he sought to raise its standards before resigning in March.

Statistician Aaron Brown agrees with Prasad that many studies leading to FDA approval are poor or inconclusive. But Brown says even better clinical trials won’t tell us conclusively how a new drug will perform in the wild. The best approach is Bayesian—let doctors and patients try new drugs, and then we can gradually learn from their effects. 

“Frequentists look for decisions,” Brown explains. “Approve the drug, don’t approve the drug. Make everybody get the vaccine. Let nobody take the vaccine. Bayesians want to hand you a list of odds and say, ‘OK, if you take this pill, there’s a 10 percent chance you’ll get cured, a two percent chance it’ll kill you.’ The recent FDA action is primarily directed at Bayesian practice. They wanna bring more Bayesian tools into what is basically a frequentist FDA.” 

The Bayesian approach also takes into account the heterogeneity of human physiology. A drug that fails in a broad clinical trial, or that brings outsized risk for one class of patients, might be transformative—or at least worth trying—for another subset of the population.

Brown wonders whether a more Bayesian FDA might have avoided the pitfalls of the one-size-fits-all approach of COVID-era vaccine trials and recommendations.

“If the FDA were entirely Bayesian,” he says, “They’d say, ‘OK who needs this [COVID vaccine] the most?’ Old people with risk factors who have high exposure to COVID—they need it the most…it can have a lot of bad effects and it’s still a good deal for them. So we give it to a bunch of them and we watch them very carefully…We’re seeing, how do they feel? When did they take the vaccine? When did they get COVID if they got it? What symptoms did they have? And we do trial and error…We’d never make it mandatory. We just slowly move to [encouraging vaccination], and we let people make their own decision based on their own circumstances.”

If Makary makes the drug approval process less stringent, that would be progress, but who knows if the next administration will undo these reforms? He wouldn’t be the first FDA director to try and fail at slashing red tape.

That’s why the better outcome would be for the FDA close up shop and disappear.

Real Medical Freedom

Singer, author of the recent book Your Body, Your Health Care, says that before the government broadened its power, private organizations helped patients determine whether or not treatments were effective.

“The American Medical Association [AMA] had created its Council on Pharmacy and Chemistry,” he says. “Any pharmaceutical manufacturer that wanted to advertise in medical journals had to submit its product for testing by the AMA.”

Pharmaceutical companies still monitor safety and effectiveness today. 

“Kaiser Permanente—a vertically integrated, prepaid health care system—they have a vested interest in knowing whether certain medications cause complications,” Singer says, “because since you pay upfront for care, it’s going to cost them money if a drug is not safe.”

That’s why Kaiser Permanente partnered with the FDA to uncover the heart problems caused by the anti-inflammatory drug Vioxx, often prescribed to treat arthritis. The results led the manufacturer to pull it from the market, even though the FDA never mandated that they do so.

“[The manufacturers] were concerned about their liability,” says Singer. “So these things have a way of taking care of themselves without the FDA.”

The problem isn’t who’s in charge; it’s that anybody is in charge at all. Health care decisions are best left to patients and their doctors.

But the health care system is so complex and interdependent that the entire system needs to be unravelled. 

Ending the Medical Monopoly 

The FDA’s power derives, in part, from the fact that insurance companies, Medicare, and Medicaid are often compelled to cover the drugs that they approve. If a new treatment is highly experimental and unproven, patients should have the right to give it a try. But insurance companies and the government shouldn’t be required to foot the bill.

Brown says the FDA would do a lot less harm if it filled a purely advisory role, stripped of its power to keep drugs off the market.

“I would love the FDA to decide it was only an informational agency,” he says. “You have to change the goal of the FDA. The goal of FDA is no longer telling people what to do. It’s no longer saying these things are forbidden, these things are required.”

In this scenario, if you want to take drugs that have FDA approval, go right ahead. If you want to try drugs that don’t have FDA approval, have at it. It’s more likely you’d have to pay for them out of pocket, but nobody should have the right to stop you.

“The problem you have when you have a government monopoly,” says Singer, “is even if you have the best intended, smartest people whose hearts are in the right place, it shouldn’t be up to one regulator to decide what we adults are willing to take risks for—everyone has their own risk-benefit assessment.”

Meanwhile, medicine is becoming increasingly individualized, tailored to our unique bodily makeup, which makes the one-size-fits-all approach of FDA approval or denial even more outdated. That’s also nothing new—just look at how thalidomide both caused horrifying birth defects when taken by pregnant women and helped AIDS patients ameliorate their symptoms. Different bodies need different drugs.

We’re also seeing the melding of biology and computation, and the growing use of AI in medical research, which could produce a cascade of new health care breakthroughs. The danger of a sclerotic bureaucracy delaying a life-saving technology is more acute than ever before. 

“[With] cell and gene therapies and telemedicine and artificial intelligence, lighter touch regulation, more Bayesian approaches to things—we are going to see dramatic advances in healthcare and falling costs,” says Brown.

We can look forward to a much healthier future. But to achieve it, the COVID reckoning has to be about more than replacing one team with another. It must be about clearing the field and allowing us to reclaim full control over what we put in our own bodies.

The post The COVID Reckoning Doesn't Go Far Enough appeared first on Reason.com.

from Latest – Reason.com https://ift.tt/njhLs8x
via IFTTT

Texas Electricity Demand Could Quadruple Due To Soaring Data Center Demand: ERCOT

Texas Electricity Demand Could Quadruple Due To Soaring Data Center Demand: ERCOT

Peak demand in the Electric Reliability Council of Texas (ERCOT) territory could more than quadruple to 367,790 MW by 2032, driven primarily by data centers as well as other large load customers, the grid operator said in a preliminary forecast published Wednesday and noted by Utility Dive.

Source: ERCOT

ERCOT, which serves most of Texas, set its current peak demand record of 85,508 MW in August 2023. 

The forecast is based on ERCOT’s economic forecasts as well as information provided by utilities working with medium and large load customers, including data centers, cryptocurrency mining, industrial and oil and gas processes.

Large-load demand data from utilities was included at the direction of state lawmakers as part of SB 6, which was passed last year, but ERCOT officials told the Public Utility Commission of Texas that it may seek revisions to the forecast.

Source: ERCOT

The grid operator “has concerns with using the preliminary load forecast values for the Reliability Assessment and any other transmission and resource adequacy analysis,” Chad Seely, ERCOT senior vice president of regulatory policy, general counsel and chief compliance officer, told the PUCT in comments on the forecast filed Wednesday.

“ERCOT would prefer to consult with Commission Staff to evaluate whether it is appropriate to seek adjustment of the forecast.”

“Texas is experiencing exceptional growth and development, which is reshaping how large load demand is identified, verified, and incorporated into long-term planning,” ERCOT President and CEO Pablo Vegas said in a statement. “As a result of a changing landscape, we believe this forecast to be higher than expected future load growth.” 

Source: ERCOT

ERCOT’s comments on the forecast noted that the grid operator is currently projecting summer 2026 peak load to range between 90,500 MW and 98,000 MW — significantly more modest than the 112,000 MW forecasted peak demand in the preliminary long-term load forecast.

“We look forward to working with the PUCT on potential adjustments to refine how ERCOT ascertains the most accurate information for load forecasting and ensuring the system reliably and efficiently serves Texans,” Vegas said.

ERCOT staff will discuss the forecast at tomorrow’s PUCT open meeting and at the ERCOT board of directors meeting on April 21.

Tyler Durden
Tue, 04/21/2026 – 09:45

via ZeroHedge News https://ift.tt/2C0RkcK Tyler Durden

Scammers Demand Crypto From Stranded Ships In Strait Of Hormuz: Report

Scammers Demand Crypto From Stranded Ships In Strait Of Hormuz: Report

Authored by Amin Haqshanas via CoinTelegraph.com,

Fraudulent actors posing as Iranian authorities have reportedly sent messages to shipping companies whose vessels remain stranded west of the Strait of Hormuz, demanding payment in cryptocurrency for safe passage.

On Monday, maritime risk company Marisks issued a warning saying unknown groups had contacted shipowners claiming to represent Iranian security services and requesting transit “fees” in Bitcoin or USDt in exchange for clearance through the strait, according to Reuters.

“These specific messages are a scam,” Marisks reportedly said, adding that they do not originate from Iranian authorities. Tehran has not publicly commented on the claims.

The alerts come as the strategic waterway remains largely closed following the outbreak of conflict in the Middle East. The Strait of Hormuz, a critical chokepoint for global energy flows, previously handled around one-fifth of the world’s oil and liquefied natural gas exports before hostilities escalated in the region.

Earlier this month, reports said Iran was considering charging ships passing through the Strait of Hormuz a tariff payable in Bitcoin, with empty tankers allowed free passage while others could be charged around $1 per barrel of oil.

Crypto “transit fee” scam demands verification docs

The reported scam messages instruct recipients to submit documentation for verification before being assigned a “fee” payable in cryptocurrency, after which safe transit would allegedly be granted at a pre-agreed time.

In one example cited by Marisks, the message stated that Iranian security services would assess eligibility before determining payment in BTC or USDt, framing crypto transfers as a condition for unimpeded passage.

Trump says he won’t allow Iran to impose tolls on ships. Source: The Middle East

The company also suggested that at least one vessel recently targeted by gunfire while attempting to exit the strait may have received such fraudulent instructions, though the information has not been independently verified.

Cointelegraph reached out to Marisks for comment but did not receive an immediate response.

Crypto payments to Iran could trigger sanctions risks: Chainalysis

Shipping companies considering paying transit fees in cryptocurrency to Iran could face serious sanctions exposure, according to Chainalysis senior intelligence analyst Kaitlin Martin.

She told Cointelegraph that any payments linked to Iranian-controlled waterways could be treated as “material support,” potentially violating US and international sanctions targeting entities such as the Islamic Revolutionary Guard Corps.

Tyler Durden
Tue, 04/21/2026 – 09:30

via ZeroHedge News https://ift.tt/FJIPduK Tyler Durden

DHL CEO Warns Prolonged Energy Shock Could Push Global Economy To “Tipping Point”

DHL CEO Warns Prolonged Energy Shock Could Push Global Economy To “Tipping Point”

DHL Group CEO Tobias Meyer warned Bloomberg TV earlier this morning that a persistent Gulf energy shock could morph into broader trouble for the global economy.

“Well we have seen this before, that you have recognized by consumers as having an impact that sparks broader discussion, the real economic implications for people. Now, this hasn’t happened yet. We’re trying to prevent that from happening. The 10, 12 million barrels of crude oil per day, it will come to that tipping point. Solutions are needed and political momentum is building up to resolve the situation in the Strait of Hormuz,” Meyer said.

Meyer’s reference to the “tipping point” is clear: if Gulf oil losses of 10 to 12 million barrels per day are not offset soon, global energy and product prices will stay elevated, causing significant knock-on effects throughout the world economy.

DHL Group sits at the center of global trade. It operates parcel, express, air freight, ocean freight, and road freight, as well as supply chain services, across more than 220 countries and territories, suggesting that Meyer is a seasoned observer of what to look for ahead of inflection points in the global economy.

Meyer pointed out that the US-Iran conflict and the disruption of the Hormuz chokepoint are already affecting DHL operations, constraining transport routes, tightening freight markets, and pushing shipping rates higher, especially on Asia-Europe lanes.

He added that, with Western airlines avoiding Russian airspace and Gulf carriers operating below pre-war capacity, trade flows from India and Southeast Asia to Europe are becoming more strained.

Meyer is clear that failing to replace the loss of 10 million to 12 million barrels of crude oil per day in the Gulf would almost certainly push the global economy to a “tipping point” from which there is no return.

Separately, the International Energy Agency released a report early last week that stated, “The Iran war has thoroughly upended the global outlook for oil consumption. Demand destruction will spread as scarcity and higher prices persist.”

JPMorgan’s top commodity expert recently described how the demand destruction crisis would spread from the Gulf area, hitting Asia first, then Africa and Europe, before ultimately affecting the US, especially California.

Source

With the Strait of Hormuz still effectively shut by Iran, a U.S. naval blockade in place, and U.S.-Iran talks potentially set for later today ahead of Wednesday’s ceasefire deadline, even an immediate diplomatic breakthrough would not restore energy flows overnight. Gulf-area export hubs would still take months to return to normal.

This shows that the Gulf energy shock threatens to push the global economy dangerously close to the tipping point Meyer describes.

Tyler Durden
Tue, 04/21/2026 – 09:15

via ZeroHedge News https://ift.tt/OuWEvlz Tyler Durden

Trump Invokes Defense Production Act To Sign Energy-Related Directives

Trump Invokes Defense Production Act To Sign Energy-Related Directives

Authored by Aldgra Fredly via The Epoch Times,

President Donald Trump on April 20 invoked the Defense Production Act to issue a series of memorandums focused on strengthening coal supply chains, ​natural gas transmission, and ​liquefied natural gas capacity.

Trump also signed memos aimed at boosting domestic petroleum production, enhancing grid infrastructure, and expanding the deployment of “large-scale energy” and related infrastructure.

In a post on X, White House spokeswoman Taylor Rogers said the memos would allow the Energy Department to use funding from the One Big Beautiful Bill Act to strengthen the country’s “grid infrastructure and unleash reliable, affordable, secure energy.”

The Defense Production ​Act is ​a ⁠cold war-era legislation that grants the president authority to expand and expedite the supply of materials from the domestic industrial base for national security purposes.

In the memos, Trump cited his Jan. 20, 2025, executive order declaring a national energy emergency, noting that insufficient energy supply could expose the country to “hostile foreign actors” and risk national security.

“Consistent with that declaration, I find that ensuring the domestic capability for development, manufacturing, and deployment of large-scale energy and energy-related infrastructure is essential to United States national defense, yet due to financing risks, regulatory delays, and market barriers, these cannot be met in full under existing market conditions,” the president stated in one of his memos.

The memos direct the Energy Department to make “necessary purchases, commitments, and financial instruments” to support projects expanding oil production, coal supply chains, natural gas transmission, liquefied natural gas capacity, grid infrastructure, and other energy-related infrastructure.

The move came as the Trump administration worked to curb surging commodity prices fueled by the conflict with Iran, which has driven up oil ​and fertilizer costs.

Iran last week said it would open the Strait of Hormuz to all commercial vessels during a 10-day ceasefire between Israel and Lebanon, but started charging tolls and later reinstated “strict military oversight” over the strait due to the resulting U.S. naval blockade of Iranian ports. The United States then imposed a blockade against vessels visiting Iranian ports on April 13 after the United States said that Iran was not allowing free passage through the strait, which was a condition for the ceasefire.

The situation heightened market uncertainty and pushed oil prices higher on April 20, with crude trading at about $94.75 on April 20.

To ease pressure on oil markets and ensure adequate supply, the Trump administration on April 17 renewed a sanctions waiver that allows nations to buy Russian oil stranded at sea, extending it through May 16 after the previous license expired on April 11.

In February, the Treasury Department issued a general license authorizing the exploration, development, and production of oil and gas in Venezuela as part of an effort to boost oil supply chains.

Tyler Durden
Tue, 04/21/2026 – 09:01

via ZeroHedge News https://ift.tt/IQo8B92 Tyler Durden

“We’re On Borrowed Time”: Vitol LNG Chief Warns Of Coming Food Price Shock

“We’re On Borrowed Time”: Vitol LNG Chief Warns Of Coming Food Price Shock

Pablo Galante Escobar, the head of liquefied natural gas (LNG) at Vitol, warned the audience at the FT Commodities Summit earlier today that the “world is on borrowed time” and that the Gulf energy shock will develop into a food crisis unless LNG flows resume through the Hormuz chokepoint.

We are on borrowed time. Every day this trade remains closed and every day production does not come back, we are building a problem for the future, and we are building a problem that, as I said, will be transferred from the energy side into many different sectors, with the food sector being a very important one,” Escobar said, who works world’s biggest independent energy trader.

Escobar continued, “This is not sustainable, or the energy crisis will become a food crisis. Only gas can supply the feed for fertilizers. We are building a problem for the future.”

He added that even if the Hormuz chokepoint reopened today, it could still take three to five months for undamaged LNG production to fully recover.

Longer term, the Gulf market could lose about 20 million tons per year of global LNG supply growth in 2027 and 2028 because of damage to Qatari capacity and delays to new regional projects. 

Escobar is correct that the second- and third-order effects of Gulf-related LNG supply disruptions are already rippling through the global fertilizer chain, sending prices sharply higher and triggering shortages across critical agricultural belts.

The downstream risk has been very clear: reduced fertilizer availability and higher input costs threaten to dent crop harvest yields later this year. In other words, this potentially sets the stage for a food price inflation spike: 

Global food prices vs. US diesel prices at pump vs. US urea spot prices  

Also at the FT Commodities Summit, Julien Bourdeau, global head of LNG at Mercuria, said the previously expected global LNG glut that was expected to swamp the world has been postponed, with the 2026 market getting shorter. 

One month ago, we asked a very simple question: Will QatarEnergy’s LNG Fiasco Derail Goldman’s Prewar View Of A Mega LNG Wave.”

Facing a possible food inflation spike later this year suggests one thing: hedge now. Plant a backyard garden, buy a chicken coop, and become more self-sufficient on your own land.

Tyler Durden
Tue, 04/21/2026 – 08:45

via ZeroHedge News https://ift.tt/UiE4TQ7 Tyler Durden

US Employment Additions Accelerate As Retail Sales Soar In March

US Employment Additions Accelerate As Retail Sales Soar In March

BofA’s (almost) omnipotent analysts forecasted a stronger than expected retail sales print this morning as tax refunds trump surging gas prices…

Headline retail sales printed +1.7% MoM in March (vs +1.4% MoM exp) – the strongest monthly rise since Jan 2023 – leaving retail sales up 4.0% YoY…

Source: Bloomberg

Under the hood, Gasoline Station spending dominated the surge in spending… 

Source: Bloomberg

Automobile Wholesalers saw a sizable decline last month…

Source: Bloomberg

Ex-Autos and Ex-Autos-and-Gas both also beat expectations dramatically (+1.9% MoM vs +1.4% MoM and +0.6% MoM vs +0.3% MoM respectively).

Source: Bloomberg

The Retail Sales Control Group – which plugs directly into the GDP calculation – rose for the 3rd month in a row, up 0.7% MoM (smashing expectations of +0.2% MoM)…

Source: Bloomberg

Here’s BofA’s color on what was behind the spending…

More paid at the pump, but still plenty left in the wallet

As expected, gas spending rose sharply in March reflecting higher gas prices. While energy’s share of total consumer spending has declined steadily over time, standing at about 4% as of January, it remains higher for lower income HHs than higher income HHs. Accordingly, y/y gas spending among lower income HHs rose slightly more than higher income HHs in the last few weeks. But, despite higher gas spending, most sectors posted m/m gains in March, and total card ex gas spending remained at healthy levels.

Limited equity sell-off, no sign of higher income pullback

One factor supporting ex gas card spending despite higher oil prices may be the largely contained equity market sell-off from the Iran war, with the peak to trough (end Jan to Mar) decline below 10%. We think a sustained sell-off in excess of 20% is needed for a meaningful pullback in higher income spending via negative wealth effects. Indeed, BAC data show little evidence that higher income HHs have curtailed spending

OBBBA related tax refunds continue to provide support

Second, the $45bn consumer stimulus from the OBBBA since the start of this year’s tax refund season, while smaller than our expectations, is still supportive. Also, BAC data show that YTD ’26 tax refund growth has been stronger among higher income HHs than lower income HHs. This is reverse of last year but is in line with expectations as OBBBA tax changes accrued more to HHs with higher tax liabilities. This further reinforces K-shaped consumer spending growth.

With all that in the background, we also note that ADP weekly employment change index soared once again last week to an average of 54,750 jobs added per week for the last four weeks…

…and that was during the war – seems slumping consumer sentiment did not stall spending or employers’ confidence.

Tyler Durden
Tue, 04/21/2026 – 08:38

via ZeroHedge News https://ift.tt/1KC52sD Tyler Durden

US Futures Resume Rally As Iran Optimism Returns

US Futures Resume Rally As Iran Optimism Returns

The optimism that helped list the S&P on 11 of the prior 12 days, and the Nasdaq on 13 consecutive days until Monday’s modest pullback, is back – because one can apparently draw the same exact event for 3 weeks now – and sending US equity futures higher again on signs that Iran will attend talks with the US, while the US president said it’s “highly unlikely” that he’d extend the truce. As of 8:00am, S&P 500 futures rose 0.4%, rebounding from Monday’s decline, and supposed by solid earnings, the AI narrative and positioning even as the situation in the Middle East remains unresolved. Nasdaq 100 futures rose 0.5% with most Mag 7 names higher: AMZN +2.8%, META +0.6%, AAPL -0.4%. Apple announced its new CEO after yesterday’s close (hardware chief John Ternus will become the CEO effective September 1st); AMZN announced it will invest another $25bn in Anthropic with Anthropic committing to spending more than $100bn over the next 10yr on AWS. 10Y yields added 1bps to 4.26%. Commodities are mostly lower: Copper -0.5%, Silver -1.0%, WTI crude was flat at $87.60 per barrel, reversing a modest loss. Retail sales and Warsh’s confirmation hearing will be in focus later.

In premarket trading, Mag 7 stocks are mostly higher after the iPhone maker said hardware chief John Ternus will be its next CEO, with current leader Tim Cook moving to the role of executive chairman. AMZN rises 3% after the cloud-computing and e-commerce giant said it is investing an additional $5 billion in Anthropic and may inject $20 billion more over time (META +0.5%, Tesla (TSLA) +0.7%, Microsoft (MSFT) +0.3%, Alphabet (GOOGL) +0.4%, Nvidia (NVDA) +0.2%).

  • 3M Co. (MMM) slips 2% after the maker of Post-it notes, protective equipment and auto maintenance products reported adjusted organic growth that missed estimates.
  • Amazon suppliers rise on Amazon’s investment in Anthropic. Marvell Technology (MRVL) +2%, Credo Technology (CRDO) +5% and Astera Labs (ALAB) +8%.
  • Alaska Air (ALK) slips 1.2% after the carrier announced it will be suspending full-year guidance due to higher fuel costs. The company also expects a higher adjusted loss-per-share in the second quarter than what Wall Street is estimating.
  • Avis Budget (CAR) rises 7% and is set to extend its short squeeze for a fourth consecutive session.
  • Tractor Supply (TSCO) falls 5% after the retailer reported comparable sales for the first quarter that missed the average analyst estimate.
  • UnitedHealth (UNH) climbs 7% after reporting first quarter profit that blew past Wall Street expectations. The company also boosted its outlook for the year, a sign of the health conglomerate’s progress toward rebuilding credibility with investors after a collapse a year ago.

In corporate news, Apple CEO Tim Cook will hand the reins to hardware boss John Ternus later this year. Ternus will face challenges even as he maintains Apple’s device empire — needing to take chances, enter new product categories and find the company’s footing in AI. Elsewhere in tech, Amazon is investing an additional $5 billion in Anthropic and may inject $20 billion more over time, a deal that strengthens ties in in an increasingly competitive AI race. The deal was struck at a valuation of $350 billion, not including the new funding, Anthropic said.

Sentiment rose overnight even though Trump signaled that a ceasefire extension is unlikely, while Iran hasn’t confirmed who, if anyone, will travel to the Pakistani capital for peace talks.  Strategists continue to look outside of geopolitics, with JPMorgan’s Dubravko Lakos-Bujas raising his year-end S&P 500 price target to 7,600 on the back of strong tech and AI earnings. But for Kristina Hooper, chief market strategist at Man Group, the market is showing signs of “irrational exuberance 2.0,” with the strength of the recent equity rally defying logic and largely based on the belief in a “POTUS Put.”

The US is waiting to see if Iran will take part in a second round of ceasefire talks before the truce expires on Wednesday. President Donald Trump said his vice president, JD Vance, was ready to leave for negotiations in Pakistan. Tehran has yet to confirm its attendance.

Speaking to Bloomberg News in a phone interview on Monday, Trump said he would not be “rushed into making a bad deal” and that the US naval blockade on Iranian ports would stay in place until an agreement is reached. Additionally, the president said a ceasefire extension beyond late Wednesday was unlikely.

“Traders will understandably be focused on events in Pakistan, with talks expected to resume ahead of tomorrow’s deadline,” said Joshua Mahony, chief market analyst at Scope Markets.

Solid early earnings are also helping. The Citi US earnings revisions index has moved back into positive territory after two negative weekly prints. Of the 49 S&P 500 companies to have reported so far, 80% have beaten analysts’ forecasts, while 12% have missed.

The Federal Reserve’s future is also on the minds of traders, as Kevin Warsh for his confirmation hearing. Warsh is Trump’s pick to replace the central bank’s current chair, Jerome Powell. It could be one of the most contentious such hearings in many decades. Warsh, in prepared remarks, vowed to protect the Fed’s independence if he were confirmed to the role.

“We think that the appointment of Kevin Warsh is unlikely to significantly adjust the balance of the Federal Open Market Committee – or, in any case, not to the extent that it would lead to any non-key rate cuts that are not justified by the US economic situation and the institution’s mandate,” CIC economists including Adrien Régnier-Laurent wrote in a note.

Earnings season rolled on, with UnitedHealth Group Inc. jumping 7.4% during premarket trading after the health insurer boosted its profit forecast. General Electric Co. gained 1.3% after the jet-engine manufacturer’s first-quarter profit came ahead of Wall Street’s expectations. 

Europe’s The Stoxx 600 is higher by 0.3% with IT near the top of the leaderboard. Insurance and utilities outperformed, while food and beverage names fell, led by Royal Unibrew which said its partnership deal with PepsiCo in several nations will expire at the end of 2028.  Here are some of the biggest movers on Tuesday:

  • British Land shares rise as much as 3.7% as the commercial property group upgrades earnings guidance.
  • BF shares rise as much as 12% to a record high after the Italian agriculture services company received a voluntary takeover offer from Arum and Dompè Holding at a significant premium to Monday’s close.
  • THG shares rise as much as 9.8% after the online retailer said it delivered its best 1Q revenue growth since 2021, as both the Beauty and Nutrition arms reported positive topline momentum.
  • J D Wetherspoon gains as much as 5.9% as Peel Hunt upgrades to add from hold following recent share-price weakness, noting the pub operator has been trading at an EV/Ebitda close to all-time lows.
  • Beiersdorf falls as much as 3.6% after the German personal care products group and Nivea owner reported first-quarter earnings which fell short of expectations.
  • AB Foods shares drop as much as 7.1%, the most since January, after the company downgraded expectations for its Sugar business and said its clothing arm Primark experienced softer trading in April as the Middle East conflict hit consumer confidence.
  • Royal Unibrew shares plunge as much as 23% after the Danish brewer said its partnership with PepsiCo in Denmark, Finland and the Baltic states will end when the current license agreements expire at the end of 2028.
  • Crest Nicholson shares tumble as much as 45% to a record low as the UK homebuilder cuts full-year earnings guidance due to economic uncertainty and softening land sales that have caused it to prioritize cash preservation.
  • Fagerhult falls as much as 20% after the Swedish lights and lighting systems manufacturer said first-quarter earnings would be weaker than it expected due to “continued general market uncertainty, largely related to the geopolitical unrest in the Middle East.”
  • Barco drops as much as 10% as the consumer electronics firm warned that its full-year guidance is in doubt if current macro‑economic conditions and geopolitical tensions persist.
  • Retail Estates shares decline as much as 5.2% after being downgraded at KBC Securities following its move to enter the French market. Analysts said it makes strategic sense, but warn that financing the expansion will erode earnings per share growth.
  • Avanza shares fall as much as 7.8% after the Swedish retail trading platform reported first-quarter results that analysts viewed as disappointing.

Earlier in the session, Asian stocks advanced, as optimism over a potential resumption of negotiations ahead of a looming Middle East ceasefire deadline lifted sentiment. The MSCI Asia Pacific Index rose as much as 0.9% to the highest in seven weeks. Technology megacaps including TSMC and SK Hynix were among the top contributors to the gauge’s gains. South Korea’s Kospi index climbed to a record, powered by chipmakers as the artificial intelligence trade regained momentum.  Fresh signals that Iran and the US are continuing to work on a deal to end the war buoyed risk-on sentiment across Asia even though President Donald Trump said he’s unlikely to extend the two-week ceasefire with Iran. Investors are also starting to refocus on fundamentals, reverting to familiar themes such as AI-related trades. The MSCI Asia Pacific Index has lagged the S&P 500 gauge since the war began given the higher exposure of Asian economies to oil imports from the Middle East. Still, the gap has narrowed as markets price in a de-escalation of the conflict. The Asian benchmark has risen 13% so far this year, versus 3.9% jump in its US peer.

In FX, the Bloomberg Dollar index is higher by 0.2% with the greenback higher versus all major peers with the exception of Kiwi dollar, which has been boosted by firmer inflation data.

In rates, bonds edged lower into the early US session led by the front-end of the curve where 2-year yields are up almost 2bp on the day but price action has been muted with oil futures edging lower. Treasuries see subtle bear flattening move with long-end yields broadly unchanged on the day and front-end cheaper by around 2bp, tightening 2s10s and 5s30s spreads by 1bp and 1.2bp on the day. US 10-year yields trade around 4.26% with bunds outperforming by 1bp on the sector, gilts trading broadly in line. UK gilts reversed a brief wobble after a top UK official said he felt pressure from the government to approve Peter Mandelson’s appointment.  Session focus includes Kevin Warsh scheduled to appear before the Senate Banking Committee, while data includes March retail sales. 

In commodities, brent crude futures are down around 0.8% and back below $95/bbl despite US President Trump’s threat to not extend the current truce with Iran. Precious metals are on the backfoot with spot gold and silver down 0.8% and 0.9% respectively.  

Today’s US economic data calendar slate includes weekly ADP employment change (8:15am), April Philadelphia Fed non-manufacturing activity, March retail sales (8:30am), February business inventories, March pending home sales (10am)

Market Snapshot

  • S&P 500 mini +0.2%
  • Nasdaq 100 mini +0.3%
  • Russell 2000 mini +0.1%
  • Stoxx Europe 600 +0.3%
  • DAX +0.6%
  • CAC 40 +0.2%
  • 10-year Treasury yield little changed at 4.25%
  • VIX +0.2 points at 19.08
  • Bloomberg Dollar Index +0.2% at 1194.04
  • euro -0.2% at $1.1759
  • WTI crude -1.8% at $88.04/barrel

Top Overnight News

  • Iran has yet to confirm its participation in new peace talks, underscoring uncertainty around the negotiations. Donald Trump said he’s “highly unlikely” to extend the truce and JD Vance is expected to travel to Islamabad as soon as tonight. BBG
  • In private, Iranian officials say they’re preparing to resume peace talks with the US. In public, however, they are far more wary, even pugnacious at times as they blame the White House for putting diplomacy at risk. NYT
  • The United States has expressed confidence that peace talks with Iran will go ahead in Pakistan and a senior Iranian official said Tehran was considering joining, but significant uncertainty remained on Tuesday as the end of a ceasefire ‌loomed. RTRS
  • Kevin Warsh heads to Capitol Hill for his Fed chair confirmation hearing, where he’ll face scrutiny from lawmakers. In prepared remarks, he pledged to protect the central bank’s independence and steer clear of “distractions” in policymaking. BBG
  • China’s alumina imports surged to a two-year high in March as Middle East disruptions rerouted cargoes, boosting aluminum output and margins. Copper production rose to a record 1.33 million tons. BBG
  • Indonesian stocks slid after MSCI extended the review period to June as it assesses the impact of recent regulatory reforms. BBG
  • UK businesses stepped up job cuts in March. The number of employees on payrolls fell by 11,000 — the biggest drop since November — in a sign that the Iran war is causing caution in the labor market. BBG
  • One of the US’s top insurance regulators has warned that a “transformation” in the sector has pushed insurers into riskier private investments that are “less appropriate” for retirees. FT
  • Amazon will invest another $5 billion in Anthropic at a $350 billion valuation, and may inject $20 billion more over time. The startup plans to spend over $100 billion on Amazon’s cloud and chips over the next decade. BBG

Iran War Latest

  • No Iranian delegation, primary or secondary, have travelled to Islamabad and that reported about the departure of such officials and claims about meeting times were inaccurate, IRIB reported. The earlier reports by Al Jazeera, citing a Pakistani diplomatic source, suggested that the Iranian preliminary delegation and US delegation are present in Islamabad.
  • “A Pakistani official source told Al Arabiya: The US and Iranian delegations will arrive in Islamabad today at the same time”; “The second round of negotiations will be held as scheduled”. “We currently have no information about extending the ceasefire between America and Iran”.
  • US VP Vance is to travel to Pakistan on Tuesday for Iran talks, according to sources cited by Axios.
  • US-Iran negotiations may begin Wednesday morning in Islamabad, while US is said to believe that there is a split within the Iranian negotiating team, according to Al Arabiya citing CNN network sources.
  • Pakistan media sources note expectations US and Iran will reach an agreement by Wednesday, according to Al Arabiya.
  • Iranian official tells Washington Post that they have largely agreed on the broad outlines of the agreement, according to Al Arabiya.
  • Pakistan asked the US and Iran to extend the truce for two more weeks, while Pakistani media sources say PM Sharif may announce a ceasefire extension on Tuesday, according to Al Arabiya.
  • Journalist Elster writes “Pakistani source told Reuters that Trump may attend talks with Iran in person or remotely if an agreement is reached”.
  • White House Press Secretary Leavitt said US has never been so close to making a good deal with Iran, adds Trump still has options if there is no deal with Iran.
  • Iranian oil tanker entered Iran’s territorial waters, despite the US blockade, with an escort from the Iranian navy, Al-Mayadeen reported.
  • Iran’s Judiciary head said it is “very possible” that negotiations will not lead to a result, in that scenario Iran will act again and there will be a response to the US’ interception of a Iranian ship.
  • Iran’s Foreign Ministry condemned the seizure of Iranian cargo ship Touska by US forces and called for the “immediate release of the Iranian vessel, its sailors, crew and their families”, according to CNN.
  • Iranian Parliament Speaker Ghalibaf said by applying the blockade and violating the ceasefire, Trump wants to turn this negotiation table into a table of surrender or to justify a renewed war. We do not accept negotiations under the shadow of threats, and in the last two weeks, we have prepared to face new cards on the battlefield.
  • Israel-Lebanon ceasefire violated, ISNA reported, citing sources.
  • Israeli army reportedly withdrew part of its forces south of Lebanon following the start of the ceasefire, according to sources cited by Haaretz.
  • UN agency is reportedly preparing evacuation plan from Strait of Hormuz for hundreds of ships, Bloomberg reported.

A more detailed look at global markets courtesy of Newsquawk

APAC stocks were mixed with the region cautious amid uncertainty regarding US-Iran talks ahead of the ceasefire expiry, as there were numerous conflicting reports on when they will occur and if Iran will take part. Nonetheless, the latest relevant headlines provide some optimism, with sources stating that the US and Iran are expected to reach an agreement by Wednesday and that Pakistan’s PM is to ask for a two-week ceasefire extension, while there remains no official confirmation from Tehran about attending talks. ASX 200 trades subdued with the index dragged lower by weakness in health care, energy, mining and financials, while a quarterly production update from Rio Tinto failed to meaningfully inspire. Nikkei 225 rallied to back above the 59,000 level with upside facilitated by tech strength and expectations for the BoJ to refrain from hiking rates at next week’s meeting. Hang Seng and Shanghai Comp were contained amid earnings releases and the mixed performance in the tech sector, while markets failed to benefit from the NDRC head’s pledge that officials will help actively increase effective domestic demand and will further enhance supply chain resilience.

Top Asian News

  • New Zealand Inflation Rate QoQ (Q1) Q/Q 0.9% vs. Exp. 0.8% (Prev. 0.6%).
  • New Zealand Inflation Rate YoY (Q1) Y/Y 3.1% vs. Exp. 2.9% (Prev. 3.1%, Low. 2.8%, High. 3.1%)
  • New Zealand RBNZ Sectoral Factor Model Inflation Index YY (Q1) 2.7% (Prev. 2.8%).
  • Taiwan Export Orders (Mar) Y/Y 65.9% vs exp. 44.1% (prev. 23.8%).

European bourses (STOXX 600 +0.2%) are modestly rebounding from Monday’s losses, however the CAC 40 and SMI are failing to bounce. The DAX 40 is the outperformer, with most of the index in the green but cautiously awaiting SAP earnings on Thursday. European sectors are broadly gaining. Technology and Utilities top the pile while Food, Beverage & Tobacco lags as AB Foods weighs on the sector. Despite reaffirming its FY outlook, failure to show revenue growth and the announcement of the demerger of Primark from the food business have hit the Co.’s shares.

Top European News

  • Former UK Foreign Ministry Official Olly Robbins said the Cabinet Office suggested Peter Mandelson not be vetted at all; Foreign Office overruled it.
  • Former UK Foreign Ministry Official Olly Robbins said there was a “dismissive attitude” from Number Ten towards Mandelson’s vetting as they wanted to get him out to Washington as quickly as possible. Foreign Office was under constant pressure from the PM’s office to get Peter Mandelson cleared to become US ambassador.
  • French PM Lecornu has asked ministers to reduce spending by an extra EUR 4bln, AFP reported.

Trade/Tariffs

  • USTR Greer tells Mexican firms that auto and steel tariffs will not go down to zero, Reuters reports citing sources.
  • USTR Greer met with Mexico’s President Sheinbaum on Monday ahead of North America trade pact review.
  • US Trade Representative said US and Mexico are to launch USMCA talks on the week of May 25th and they are to be held in Mexico City.
  • US Interior Secretary Bergum said Chinese solar panels are a national security issue.

FX

  • Despite elements of risk in other assets, FX displays a risk-off bias today, with all G10 currencies bar NZD lower against the greenback.
  • DXY trades higher by 0.2%. Though there is no clear driver, the index bounced off a session low of 98.10, continuing a rebound from Monday’s 98.00. This upside came around news that an Iranian delegation had not departed for Islamabad, contrasting earlier reporting. Technicals also likely at play here, around this news, USD/JPY surpassed the 159.00 mark, crude bounced, but hit resistance at USD 95.00/bbl – explaining why the haven USD and energy benchmarks are not in tandem this morning.
  • GBP is weaker against the Buck and EUR, participants are focusing on domestic political updates, geopolitics and a hawkish Labour force survey this morning. On politics, former UK Foreign Ministry Official Robbins essentially denied the PM’s claims of due process in relation to Mandelson’s appointment. This leaves the PM in a somewhat weaker position – and as such, we saw a c. 15pip move in EUR/GBP, which has since paired. The data set for Feb, saw hotter-than-expected wage metrics and a much lower-than-expected unemployment rate. The series will be welcomed by policymakers on Threadneedle/Downing Street, signalling each were in a comfortable position pre-Middle East war & energy shock. ING writes “the details reveal the drop in the jobless rate is pretty much solely down to a rise in “economic inactivity” – that is, people neither in work nor actively seeking it.” MUFG post-data wrote “We are currently forecasting only one rate hike from the BoE.” GBP/USD saw an initial kneejerk higher, which since reversed amid the ongoing Robbins hearing.
  • NZD leads the G10 space after the latest inflation data spurred bets for rate hikes. Q1 metrics revealed that inflation surprisingly remained elevated above the RBNZ’s 1-3% target. Markets are back to pricing in 81bps of tightening by year-end, similar to levels seen post-Bremen comments, though more hawkish than Monday.

Central Banks

  • BoJ is reportedly set to stay on hold in April but keep a hawkish stance, Bloomberg reports citing sources. This adds to further reports from the Nikkei that the BoJ is to hold rates steady in April and to make a decision in June after assessing the situation in the Middle East.
  • BoJ Financial System Report: Japan’s financial system has been maintaining stability on the whole; Japanese banks have sufficient capital bases and stable funding bases to withstand various stress situations.
  • ECB’s de Guindos said high market valuations, private credit and fiscal policy are among the financial stability risks; monetary policy must be prudent, should keep a cool head.
  • CNB Vice-Governor Zamrazilova tells Czech radio that inflation this year can be expected to be just under 3%.
  • BoK’s new Governor Shin said to seek inflation stability and financial stability through cautious and flexible monetary policy operations.

Fixed Income

  • Global fixed benchmarks are mixed, with US and UK paper in the red, whilst Bunds remain afloat. Ultimately, focus has been on the volatile geopolitical environment, with attention on developments surrounding US-Iran second round talks. Initially, there were reports via a Pakistani source which suggested that the US-Iran delegation teams had arrived in Islamabad, however, Iranian State TV pushed back on these claims calling them “baseless” – they said that Iran “has not yet sent a delegation”. Markets will await how this unfolds, ahead of the expiration of the US-Iran ceasefire on Wednesday.
  • USTs are lower by around 3 ticks and currently within a 111-17 to 111-22+ range. Ultimately moving at the whim of energy price fluctuations, with a recent bout of pressure in the benchmark after the Iranian side pushed back on reports that a delegation had arrived in Pakistan. Geopols aside, US March retail sales are the main focus (exp. 1.4% M/M, prev. 0.6%), alongside the weekly ADP employment change and the Atlanta Fed GDPNow update. Elsewhere, Fed’s Waller is on the docket, though will not touch on monetary policy given the Bank is on blackout; Kevin Warsh’s senate hearing is also due. From a yield perspective, the curve is a touch steeper this morning; the 2yr currently resides around 3.73%. A positive outcome from the second round of talks could see the 2yr breach back below the 3.70% and approach near-term lows at 3.67%.
  • Bunds are firmer this morning by around 15 ticks, and currently trade towards the mid-point of a 125.90 to 126.17 range. German paper appears to be benefiting from lower energy prices. On the yield front, the curve is lower across the horizon, but with the long-end underperforming. It seems to be the view of bond traders that the Middle East situation has only near-term implications, with 10yr yield action fairly sideways in the past week or so. On the data front, German ZEW deteriorated from the prior, and beneath the consensus. Not all too surprising given this data encapsulates more of the Iran war. No move in Bunds were seen on the data.
  • Gilts are currently trading with losses of around 10 ticks, and hold within a 87.83 to 88.42 range. In recent days, domestic politics has taken a bit of attention away from the Middle East situation. The latest update came from the Former UK Foreign Ministry Official Olly Robbins, who said that the Cabinet Office suggested that Mandelson should not be vetted at all, and this was overruled by the Foreign Office. A comment which does not play in favour of PM Starmer, who has managed to shrug off some of the recent pressure he has faced. A little bit of downside was seen in Gilts at the time, but Robbins’ comments came in close proximity to geopolitical updates, which weighed on the broader complex. On the data front, UK unemployment rate fell to 4.9% (exp. 5.2%, prev. 5.2%); which would be welcomed at the BoE.

Commodities

  • Crude futures are softer thus far but have clambered off worst levels over US-Iran uncertainty. More recently, reports out of Iran suggest that no delegation has been sent to Islamabad yet, which contradicts earlier reports by Al Jazeera, citing a Pakistani source, that both the Iranian and US teams are present in Islamabad. Both WTI and Brent briefly topped above USD 87/bbl and USD 95/bbl, respectively, before falling back.
  • Other updates include the expectation that US VP Vance arrives in Islamabad on Tuesday for the talks, while President Trump stated that the US blockade will remain in place until a deal is reached.
  • Spot gold continues to trade within its ascending channel but has slipped back below the USD 4800/oz handle (current range: USD 4773-4833/oz). The modest upside seen in the dollar, thus far, is weighing on the yellow metal, with the 50-SMA at 4891 also providing a ceiling for the metal. Elsewhere, 3M LME Copper oscillates in a tight USD 13.2k-13.3k/t range amid the mixed risk appetite as markets look to potential US-Iran talks.
  • Russia is to pause Kazakhstan’s oil exports to Germany through the Druzhba pipeline starting May 1st, Reuters reports citing industry sources.
  • Gunvor Head of Research Lasserre said oil markets are “one month away from tank bottoms”.
  • China to lower retail Gasoline and Diesel prices by 555 and 530 CNY/t from April 22nd.
  • Kuwait’s force majeure on oil shipments is to have a limited impact on South Korea, according to an official cited by Reuters.
  • White House signs memo related to coal supply chains; Trump signs determination related to defence production act on domestic petroleum production.

Geopolitics: Ukraine

  • Russia’s Kremlin, on the potential resumption of flows via Druzhba, said Russia is technically ready but there was “blackmail from Kyiv”.
  • EU’s Kallas said they are to make decisions on Ukraine’s EUR 90bln loan on Wednesday.
  • Explosion heard in Ukraine’s Zaporizhzhia.
  • Japan is to permit its companies to export lethal weaponry for the first time, in a landmark break with its pacifist stance, according to FT.

US Event Calendar

  • 8:30 am: United States Mar Retail Sales Advance MoM, est. 1.4%, prior 0.6%
  • 8:30 am: United States Mar Retail Sales Ex Auto MoM, est. 1.4%, prior 0.5%
  • 10:00 am: United States Mar Pending Home Sales MoM, est. 0.5%, prior 1.8%
  • 10:00 am: United States Fed Chair Nominee Warsh Testifies in Confirmation Hearing
  • 2:30 pm: United States Fed’s Waller Speaks on Fed Operations

DB’s Jim Reid concludes the overnight wrap

In terms of latest on Iran, all eyes are on whether and in what form expected talks in Islamabad take place over the next day or so ahead of the expiration of the earlier two-week ceasefire. Trump said yesterday that this would expire on “Wednesday evening Washington time” and warned that it was “highly unlikely” that he’d extend the ceasefire. Various reporting suggests that Vice President Vance is expected depart to Islamabad today, and we also saw reporting by the New York Times and others that Iran is also sending a team to Islamabad for negotiations. With a spokesman for Iran’s foreign ministry earlier saying that Tehran had no plans to attend the negotiations, this has given a more positive light on the talks going ahead, though it remains unclear who would lead the Iranian delegation. 

While the Strait of Hormuz remained shut, the prospects for imminent talks have seen market sentiment edge higher overnight after a subdued session on Monday. Brent crude prices are -0.62% lower at $94.89/bbl after a +5.64% rise yesterday. S&P 500 (+0.17%) and NASDAQ 100 (+0.25%) futures are so far recovering most of yesterday’s losses, declines that got less severe as the day progressed with the S&P 500 only dipping -0.24% in the end. The probability of traffic returning to normal in the Strait of Hormuz by the end of May, according to Polymarket, stands at 69% this morning from 63% this time yesterday.

The NASDAQ (-0.26%) did end a 13-day winning run, the longest streak since 1992 and only bettered on four occasions in the index’s 55-year history. The Philadelphia Semiconductor index did achieve a 14th consecutive gain though. US Treasuries also slipped back modestly, with the 2yr yield (+1.5bps) up to 3.72%, and the 10yr yield (+0.2bps) up to 4.25%. And with doubts creeping back in, the VIX (+1.39pts) saw its biggest daily jump in 3 weeks, though at 18.87pts it still closed below its level on February 27, before the Iran strikes began.

The hangover from the weekend’s negative news led to a fresh rise in oil prices, particularly given warnings from Trump that he wouldn’t open the Strait of Hormuz until a deal was signed. So Brent crude was up +5.64% to $95.48/bbl by the close, and there was a clear move higher across the futures curve too, with 6-month Brent futures (+3.16%) back up to $81.97/bbl. And in turn, those moves filtered into inflation pricing, with the 1yr US inflation swap (+2.6bps) up to 3.13%, whilst the Euro inflation swap (+9.1bps) moved up to 3.06%.

This morning, Asian equity markets are rallying, with the KOSPI (+2.31%) again leading the way, driven by optimism surrounding AI-related chip manufacturers. Japanese stocks are also being supported by technology shares, as evidenced by the Nikkei (+1.29%) which is trading significantly higher. On the other hand, Chinese stocks are more mixed with the Hang Seng (+0.13%) slightly higher but the CSI (-0.35%) and the Shanghai Composite (-0.24%) lower.

As much as the Middle East is the main focus for markets, especially as we near the end of the ceasefire, today there’ll also be attention on Kevin Warsh’s nomination hearing (10am ET) to become the next Chair of the Federal Reserve. He’s appearing at the Senate Banking Committee, so investors will get an opportunity to hear his views on policy and a whole array of Fed-related issues. For more information, our US economists published a note on Friday (link here) where they outline 5 things to watch. They think the critical questions will be how forcefully Warsh argues for near-term rate cuts, particularly given the recent upside risks to inflation from the Iran war, as well as views on Fed independence. In prepared remarks that were reported yesterday, Warsh says that “monetary policy independence is essential” but also noting that “Fed independence is largely up to the Fed” and that “Fed independence is placed at greatest risk when it strays into fiscal and social policies where it has neither authority nor expertise.” So focusing on the importance of Fed independence but also suggesting that the central bank needs to earn it.  

Whilst the focus will be on Warsh, another point to look out for will be Republican Senator Thom Tillis, who’s said he’ll block any Fed appointments until the Department of Justice probe into Chair Powell is over. He sits on the Senate Banking Committee, but the Republicans only have a 13-11 majority, meaning if Tillis votes against then he could hold up Warsh’s nomination if the Democrats joined him. Powell’s current term as Chair concludes in mid-May, but he has a separate seat on the Board of Governors that lasts until January 2028, and at the most recent press conference, Powell said he’d serve as Chair pro tempore until his successor was confirmed. For reference, that’s what happened between Powell’s first and second terms as Powell awaited Senate confirmation, but that was when Powell himself had been re-nominated by President Biden, whereas Trump has suggested that “I’ll have to fire him” if Powell didn’t leave the Fed.

Earlier in Europe, markets underperformed their US counterparts, reflecting the continent’s greater exposure to higher energy prices. So the STOXX 600 (-0.82%) fell back, alongside declines for the DAX (-1.15%), the CAC 40 (-1.12%) and the FTSE 100 (-0.55%). That followed mounting speculation that the ECB would still need to hike rates this year if the oil shock were more prolonged, with the amount of hikes priced by December up +7.2bps on the day to 45bps. So sovereign bonds also lost ground across the continent, with yields on 10yr bunds (+2.1bps), OATs (+3.4bps) and BTPs (+4.4bps) all rising.

Here in the UK, 10yr gilts (+7.1bps) underperformed as question marks around Keir Starmer’s position as PM continued to swirl. The latest issues follow last week’s revelation that Peter Mandelson was appointed as US ambassador despite failing security vetting. That’s set to remain in the headlines today as well, because we’ll hear from Oliver Robbins, who was the most senior civil servant in the Foreign Office, who’s appearing before the Foreign Affairs Committee of MPs at 9am London time. Robbins was sacked for not informing Starmer that Mandelson hadn’t passed the vetting, so his version of events will be in focus today.

Finally, there wasn’t much data yesterday, but Canada’s inflation print was softer than expected, with headline CPI only up to +2.4% in March (vs. +2.6% expected). Moreover, the two core inflation measures tracked by the Bank of Canada were either in line or slightly beneath consensus. So that eased concern about imminent rate hikes, and Canada’s 10yr government bond yield fell -1.0bps on the day, outperforming its counterparts in the US and Europe.

Looking at the day ahead, one of the main highlights will be the US Senate Banking Committee, which is holding a nomination hearing for Kevin Warsh to become Chair of the Federal Reserve. Other central banks speakers include ECB Vice President de Guindos, and the ECB’s Nagel and Kocher. And data releases include US retail sales for March, the German ZEW survey for April and UK unemployment for February.

Tyler Durden
Tue, 04/21/2026 – 08:31

via ZeroHedge News https://ift.tt/Cc8W57L Tyler Durden

No Constitutional Problem with Compelling AI Disclosures in Court Filings

From Friday’s decision by Judge Nina Wang (D. Colo.) in Hessert v. Street Dog Coalition:

Plaintiff asks the Court to “[v]acate the reference to the standing order on AI as … not applicable and unconstitutional.” Plaintiff argues that the Court’s Standing Order improperly compels speech in violation of the First Amendment, violates his due process and equal protection rights, “encroaches upon” work product, and amounts to legislating from the bench. These arguments are without merit. This request is DENIED.

The challenged standing order on AI appears to be this one; it requires that,

Every filing shall contain an AI Certification regarding the use, or non-use, of generative AI (such as ChatGPT, Harvey.AI, or Google Gemini) in preparing the filing, signed by all individuals who contributed to the drafting of the filing. To the extent that generative AI was used in any drafting of the filing, each individual must certify that any language drafted by AI (even if later edited by a human) was personally reviewed by the filer or another human for accuracy and that all legal citations reference actual non-fictitious cases or cited authority.

Court rules of course routinely compel certain statements in briefs (e.g., certificates of service, word count certificates, disclosures of funding for amicus briefs, tables of contents, and so on) and routinely restrict statements in briefs or in trial (e.g., attempts to use inadmissible evidence, personal insults of opponents and of judges, and more). These rules are generally not subject to First Amendment scrutiny.

It is unquestionable that in the courtroom itself, during a judicial proceeding, whatever right to ‘free speech’ an attorney has is extremely circumscribed. An attorney may not, by speech or other conduct, resist a ruling of the trial court beyond the point necessary to preserve a claim for appeal.” What’s true for oral statements in the courtroom also applies to written filings.

Perhaps some hypothetical compulsions to express certain viewpoints, such as a mandate for all lawyers to include the Pledge of Allegiance in their briefs, might be unconstitutional (though I wouldn’t even say that categorically all viewpoint-based speech restrictions or compulsions in court are unconstitutional). But a requirement that filings disclose AI use is eminently permissible. (For Hessert’s contrary argument, see pp. 8-10 of his filing.)

Some other items from the decision:

Striking Judge Neureiter’s Order.  In his Recommendation, Judge Neureiter cautioned Plaintiff “that suing a dozen individual board members or officers for supposed illegality by the non-profit organization on which they serve without a good faith, plausible basis for individual liability could result in sanctions. Plaintiff should carefully evaluate the risks of proceeding against the individual Defendants and consider whether pursuing the individual Defendants named in his Amended Complaint is a wise use of energy and resources.” Plaintiff asks the Court to “[s]trike the unsupported sanctions threat contained at ECF No. 104, p. 10, as premature and lacking any record support.” There is no basis for the Court to do so. If Plaintiff takes issue with Judge Neureiter’s advisement, he may file formal objections under Rule 72. This request is DENIED.

Restoration of Full Motion Title.  Plaintiff next asks for “restoration of the full title of any truncated docket entry (e.g., ECF No. 110).” This request is not supported by any explanation or argument. To the extent Plaintiff takes issue with the fact that the Clerk’s Office has included only portions of the title of certain filings in the CM/ECF docket entry, there is no basis for any relief here. This is a standard practice of the Clerk’s Office to conserve space on the docket. See Fed. R. Civ. P. 79(a)(3) (stating that docket entries “must briefly show the nature of the paper filed” (emphasis added)). For example, the title of Plaintiff’s filing docketed at Doc. 110 is approximately 100 words long, and would take up an unusually large amount of space if the entire title were included in the CM/ECF docket entry. In making rulings in this case, the Court relies on the titles contained in the actual filings, not on the titles reflected on the CM/ECF docket. This request is DENIED….

Recusal.  Plaintiff asks the Court to recuse from this case and to “[r]estrain from further contact with the plaintiff in any shape or form.” This request is DENIED as duplicative. The Court has already denied one recusal request, and another motion to recuse is currently pending. The Court will rule on Plaintiff’s February 27, 2026 recusal motion in due course. As Judge Neureiter has previously explained to Plaintiff, the District of Colorado is an extraordinarily busy judicial district, and filing duplicative motions will not result in Plaintiff getting an answer more quickly. Accordingly, Plaintiff is cautioned that the continuous filing of duplicative or frivolous motions may result in this Court imposing a filing restriction.

The post No Constitutional Problem with Compelling AI Disclosures in Court Filings appeared first on Reason.com.

from Latest – Reason.com https://ift.tt/ghjwp8O
via IFTTT