Yesterday, June 12: Nuclear Everywhere...Except Iran
World Bank drops nuclear ban and expands project funding, Threats won't stop Iran's enrichment efforts, and Boeing is back under scrutiny.
June 12 QFR:
The World Bank officially lifted its decades-long ban on financing nuclear energy projects
President Trump warned an Israeli strike on Iran’s nuclear facilities “could well happen,” while Iran announced a third nuclear enrichment facility
Boeing Dreamliner crash in India has left many casualties as well as concerns for mechanical errors and fleet grounding
Notes for June 13:
0700PST: Michigan Inflation/Consumer Expectations
0800PST: President Trump attends a National Security Council Meeting
1230PST: CFTC Speculative Net Positions (Crude Oil, Gold, Nasdaq 100, S&P 500)
US Market:
Wall Street’s rally paused Wednesday, with the S&P 500 dipping 0.3% from near its all-time high. Tech stocks, led by Apple, saw declines while Chime financial’s IPO aggressively closed the day up 37%. Treasury yields eased as May inflation hit 2.4%, below expectations, suggesting tariffs aren't yet fueling prices much. Markets had modest reactions to recent U.S.-China trade talks. U.S. jobless claims remained unchanged at 248,000 last week, staying at higher levels, signaling potential rising layoffs. This trend, coupled with companies trimming forecasts due to tariff uncertainty, is raising recession fears.
[Wall Street's mild dip reflects a market catching its breath, focusing on inflation, trade, and monetary policy. Better-than-expected inflation data could embolden the Fed to consider rate cuts, potentially boosting growth. The U.S.-China trade "framework" provides a fragile calm. It seems the market is in a patient mood, waiting for the right kind of bite to the apple.]
🧥 - BA 0.00%↑, GME 0.00%↑; 🌲 - ORCL 0.00%↑, MSFT 0.00%↑
President Donald Trump has signed a resolution blocking California's 2035 ban on new gas-powered car sales, along with other state rules on vehicle emissions. California, joined by ten other states, announced a lawsuit challenging the move, as unlawful and partisan. Trump called CA’s regulations "crazy" and said the action provides "freedom" for consumers, a stance supported by auto industry groups who deemed the mandates unrealistic.
[This executive action and the subsequent lawsuit create significant uncertainty for the U.S. auto industry, which now faces conflicting federal and state directives on emissions and EV adoption.]
🧥 - TSLA 0.00%↑, RIVN 0.00%↑; Tree - GM 0.00%↑, STLA 0.00%↑
Boeing (BA) shares tumbled over 6% in pre-market trading after an Air India Boeing 787-8 Dreamliner crashed moments after takeoff from Ahmedabad, killing at least 241 of the 242 people on board and causing additional casualties on the ground—the first fatal crash involving a Dreamliner and the deadliest air disaster in India since 1996. U.S. officials said there is currently no evidence requiring a global grounding of the 787 fleet, but the FAA and NTSB are sending teams to assist the investigation
[The unprecedented Dreamliner tragedy hammered XLE and JETS as travel and transport sentiment soured, and further regulatory action or findings could deepen the rout for Boeing after recently clearing its name in court.]
🧥 - BA 0.00%↑, JETS 0.00%↑; 🌲 - ARKK 0.00%↑, QQQ 0.00%↑
US Politics:
Protests against federal immigration enforcement raids are escalating nationwide, with major demonstrations planned. While many are peaceful, some have turned violent, leading to arrests and clashes with police. City officials have imposed curfews in Los Angeles and Spokane, and governors in Texas and Missouri mobilized National Guard troops. These events coincide with scheduled "No Kings" protests against President Trump's administration.
[Widespread protests over immigration enforcement signal significant social unrest and increased friction between federal and local authorities. For industries reliant on immigrant labor, like construction and agriculture, these raids and community fear could lead to labor shortages and higher operating costs. It seems the "invisible hand" of the market might soon discover it needs an actual hand to pick the crops.]
🧥 - HD 0.00%↑, TSN 0.00%↑; 🌲 - AXON 0.00%↑, BRC 0.00%↑
The World Bank officially lifted its decades-long ban on financing nuclear energy projects, as President Ajay Banga announced the institution will now back the extension of existing reactors, grid upgrades, and the acceleration of Small Modular Reactor deployment in partnership with the IAEA.
[Driven by bipartisan US Congressional support and surging electricity demand in developing economies—aims to reduce reliance on Russian and Chinese nuclear financing, unlock an estimated $8 trillion in global power sector investment over the next 20 years, and level the playing field for Western nuclear tech giants.]
🧥: XOM 0.00%↑, TM 0.00%↑; 🌲: ARKK 0.00%↑, QQQ 0.00%↑
Global Politics:
Iran announced a third nuclear enrichment facility and accelerated uranium enrichment in response to an IAEA censure for non-compliance. This escalates tensions, with the U.S. warning of "massive conflict" if diplomacy fails and Israel potentially launching airstrikes. Negotiations continue, but the situation remains volatile, impacting regional stability and global non-proliferation efforts.
[Iran's nuclear escalation following IAEA censure significantly heightens geopolitical risk, increasing global instability and potentially impacting energy markets. The financial sector will closely monitor oil prices and defense stocks, as military action remains a possibility. Public policy efforts will focus on diplomatic resolution to avoid conflict, while considering further sanctions. It's a high-stakes poker game, and it seems Iran just upped the ante with a new facility.]
🧥 - BA 0.00%↑; 🌲 - XOM 0.00%↑, CVX 0.00%↑, NOC 0.00%↑
President Trump warned an Israeli strike on Iran’s nuclear facilities “could well happen,” while simultaneously announcing that the U.S. will not provide military support for any such Israeli operation. Trump stated the US remains dedicated to resolving the Iran nuclear issue peacefully, but only if Tehran fully abandons its nuclear weapons ambitions; Iran has stated they will not compromise on their right to uranium enrichment.
[The financial sector will closely monitor oil prices and defense sector performance. Public policy will prioritize diplomatic solutions to prevent military escalation, but the persistent nuclear standoff creates an environment of sustained uncertainty.]
🧥: NICE 0.00%↑, TEVA 0.00%↑; 🌲: NOC 0.00%↑, XOM 0.00%↑
The U.N. General Assembly overwhelmingly voted for an immediate Gaza ceasefire, hostage release, and unrestricted aid delivery, condemning starvation as warfare. Israel vehemently opposed, denying starvation tactics and arguing aid delivery despite the many instances in which the IDF have shot those attempting to obtain aid. While not legally binding, the resolution reflects global opinion amidst widespread hunger fears in Gaza. The U.S. vetoed a similar Security Council resolution previously, as it lacked a hostage release linkage.
[This non-binding U.N. resolution highlights intensified international pressure on Israel regarding Gaza, potentially influencing diplomatic efforts and public perception globally. The resolution's focus on humanitarian aid delivery also points to potential shifts in aid funding and logistics, reminding us that even global conflicts eventually end up on someone's balance sheet.]
🧥 - ZIM 0.00%↑, NICE 0.00%↑; 🌲 - RTX 0.00%↑, LMT 0.00%↑
Technology:
Micron Technology (MU) announced a $200B investment plan today, with $150B for new high-volume memory fabs in Idaho, New York, and Virginia and $50B for advanced R&D.
[Supported by $6.4 billion in CHIPS Act funding, this will create an estimated 90,000 jobs, bring advanced high-bandwidth memory (HBM) packaging to the U.S., and massively boost domestic supply for AI, automotive, and defense sectors, marking the largest semiconductor manufacturing commitment since the CHIPS Act’s passage.]
🧥: XLE 0.00%↑, XLP 0.00%↑; 🌲: ARKK 0.00%↑, QQQ 0.00%↑
Reports on ‘X’ the social media company confirmed their aggressive legal strategy—threatening lawsuits against brands that pulled ad spending—has coerced at least six major companies, including Verizon and Ralph Lauren, into resuming advertising commitments on the platform.
[Verizon, for example, pledged at least $10 million in 2025 ad spend after receiving an ultimatum, though this remains far below its pre-Musk levels. Meanwhile, several global giants like Lego, Pinterest, Nestlé, and Shell have chosen to fight X’s threats in court, highlighting the polarizing impact of Musk’s approach as X’s ad revenue remains down 44% since 2022.]
🧥: XLE 0.00%↑, XLF 0.00%↑; 🌲: ARKK 0.00%↑, QQQ 0.00%↑
Meta's new standalone Meta AI app allows public sharing of private conversations, including sensitive personal and financial queries, often without clear user awareness of the privacy settings. This "Discover" feed, likened to a public browser history, has raised significant privacy concerns. Despite low independent app downloads, Meta's AI features are integrated across its platforms, reaching nearly a billion monthly users, increasing the potential for widespread privacy blunders.
[This severe privacy lapse on Meta's AI app risks significant user backlash and heightened regulatory scrutiny, potentially leading to fines and stricter data handling mandates. The incident also highlights a broader industry challenge in balancing AI innovation with robust privacy safeguards, proving that sometimes, even the most advanced tech companies can trip over the most basic user experience principles.]
🧥 - META 0.00%↑, SNAP 0.00%↑; 🌲 - CRWD 0.00%↑, NET 0.00%↑
Meta is partnering with XGS Energy to develop a 150-megawatt geothermal power plant in New Mexico, marking its latest foray into the renewable energy. Geothermal, appealing for its constant, emission-free power, is gaining traction with tech giants like Google, which also has geothermal deals. XGS Energy uses a closed-loop system minimizing water loss, attracting significant investment in the advanced geothermal sector.
[Meta's investment in geothermal energy reflects a growing trend among tech companies seeking sustainable, always-on power for data centers, boosting the renewable energy sector. This partnership also highlights the industry's pivot toward cleaner, more reliable energy sources, perhaps realizing that even the metaverse needs to keep the lights on, sustainably.]
🧥 - XOM 0.00%↑, VLO 0.00%↑; 🌲 - META 0.00%↑, NEE 0.00%↑
New York-based micromobility startup Infinite Machine has revealed "Olto," a new seated electric scooter priced at $3,495. Shipping later this year, it features a 40-mile range, 20 mph top speed (33 mph off-road), and modular design for attachments. This follows their $10,000 P1 scooter. The U.S. micromobility market is challenging, but Infinite Machine aims to succeed with unique product sensibility.
[Infinite Machine's Olto targets a niche in the micromobility market with premium pricing and modularity. While funding is secured, the challenging U.S. e-bike market signals difficult profitability. For investors, it's a high-risk, high-reward bet on urban transport or perhaps just another fashionable way to fund a short ride. The financial sector remains keen on urban transport solutions, or at least anything that looks good on two wheels.]
🧥 - UBER 0.00%↑, LYFT 0.00%↑; 🌲 - TSLA 0.00%↑, LAC 0.00%↑
Smartphone startup Nothing will launch its flagship Phone (3) in the U.S. via its website and Amazon, expanding its limited U.S. presence. CEO Carl Pei aims to challenge Apple, Samsung, and Google by offering a differentiated design, premium features, and enhanced carrier compatibility. Priced around $1,000, Nothing faces an uphill battle in the dominated U.S. smartphone market despite its CEO's optimism.
[Nothing's expanded U.S. smartphone entry will test market openness to new premium alternatives, challenging the Apple/Samsung duopoly. Its success hinges on capturing a "hungry" consumer segment, or perhaps just proving that a little design flair goes a long way, especially when trying to differentiate from a fruit and a celestial body.]
🧥 - AAPL 0.00%↑, SNE 0.00%↑; 🌲 - QCOM 0.00%↑, MSI 0.00%↑
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