After yesterday’s stellar, blowout 2Y auction, moments ago the US sold $70 billion in 5Y paper in what was a far weaker auction. 

The high yield was 3.724%, down from 3.983% in July and the lowest since last September’s 3.519%; it also tailed the When Issued 3.717% by 0.7bps, the 3rd tail in a row.

The Bid to Cover was 2.36, up from last month’s ugly 2.31, but below the six auction average of 2.37.

The internals were also wobbly, with Indirects taking 60.5%, up from 58.3%, but also far below the recent average of 69.3%. But weakness in foreign demand was offset by a surge in domestic demand, with Directs taking a new record high of 30.7%.

This left just 8.8% for Dealers, tied with the previous record low from Jan 2023.

And overall:

While this was generally a disappointing auction, although with some silver linings below the surface, clearly the market did not care, and 10Y yields slumped to the day’s lows shortly after the auction.

By Bas van Geffen, Senior Market Strategist at Rabobank

Today’s headlines are more of the same, which should spell bad news for longer-term government bonds. The long end of the Treasury curve has been struggling since President Trump moved to terminate Lisa Cook position at the Fed on Monday. However, considering the potential implications, markets have arguably been eerily calm in the face of this news. Long-term yields are up, but not massively, and Bloomberg headlines today that speculators have accumulated the biggest net short positions on the VIX index since 2022, essentially betting that the calm will last. Is that a setup to another volmageddon?

As my colleagues pointed out in this daily over the past couple of days, the president is trying to align the central bank with his broader agenda. So why stop here?

If the dismissal of Cook holds up in court, Trump-appointees will have a majority in the Fed’s Board of Governors. But the Federal Open Market Committee, which makes policy decisions, also consists of the presidents of the 12 regional Federal Reserve banks. The next headline should therefore not be surprising. Bloomberg reports that the Trump administration is looking at its options to increase its influence over the nomination process of the regional Fed presidents.

According to one of Bloomberg’s sources, candidates for Fed Chair Powell’s job may also be considered to head one of the regional banks. However, it is not exactly clear how that would happen.

Unlike the Fed’s Board of Governors, the presidents of the regional Fed banks are not nominated by the US president and confirmed by the senate. Instead, they are appointed by private-sector boards and the Board of Governors. The Fed’s board confirms the appointments once every five years, and the next reappointments are scheduled for February. If Cook is replaced, the Trump loyalists in the Fed’s board could potentially block appointments. But there is currently no sure-fire way for Trump to get anyone in particular nominated for the job.

Likewise, the Trump administration is looking to expand its control over US supply chains. Following last week’s announcement that the White House will take a 10% stake in Intel, Secretary of Commerce Lutnick suggested that defence companies may be next: “They are basically an arm of the US government.”

So, as noted in yesterday’s daily, the US are taking a page from China’s playbook. Because markets alone cannot compete with China’s state-directed framework. Where does that leave Europe and its attempts to regain strategic autonomy?

Internally, France is descending into another political crisis after PM Bayrou called for a confidence vote on September 8. At 114%, Frances debt ratio is the third highest in the Eurozone, but the large budget deficit is particularly worrying. The minister of Finance said that he cannot rule out that the IMF may ultimately have to intervene if parliament does not take the necessary austerity measures. Although that scenario is still a long way off, what would the IMF have to offer? Advice about structural reforms and privatization? How will such policies fare against not only a state-led China, but also an increasingly coordinated US economy?

With this vote of confidence, Bayrou essentially wants to seek parliament’s support to continue drafting a budget for 2026. The prime minister wants to avoid that these efforts are shot down at a later stage, but in doing so, Bayrou now takes a very risky gamble with the future of his minority government.

Prior to the holidays, Bayrou’s proposed budget cuts had already sparked anger amongst the opposition parties. The hard left simply does not see the need for any austerity. Both Le Pen’s National Rally and the Socialists support austerity to some degree, but they want to cut in different areas than proposed by Bayrou.

Normally, this would leave room for negotiations. And the government’s budget cuts might have survived in an altered, perhaps somewhat diluted form. The vote of confidence is not a de facto approval of any budget – parliament will have to vote on that towards the end of the year. However, by calling for a vote of confidence, the prime minister is essentially putting pressure on these opposition parties to support his efforts to consolidate the budget. And that may be hard to swallow.

So, the risk has grown substantially that France’s government will fall, which would also raise the risk that the 2026 budget will not include any material spending cuts. The coming days will tell if Bayrou can work the opposition parties to get them on board. The Socialists have said that it’s “inconceivable” that they will vote in favor of the government, but they seem to be the prime minister’s best chance for survival at this point

Authored by Amin Haqshanas via CoinTelegraph.com,

Cryptocurrencies are becoming a core part of the economy in Venezuela as citizens turn to digital assets to shield themselves from a collapsing currency and tighter government controls.

From small family stores to large retail chains, shops across the country now accept crypto through platforms such as Binance and Airtm. Some businesses even use stablecoins to pay employees, while universities have begun offering courses dedicated to digital assets.

“There’s lots of places accepting it now,” shopper Victor Sousa, who paid for phone accessories with USDt, told the Financial Times. “The plan is to one day have my savings in crypto.”

Venezuela ranked 13th globally for crypto adoption, according to the Chainalysis 2024 Crypto Adoption Index report, which noted a 110% increase in usage in the year.

Venezuela ranked 13th globally for crypto adoption. Source: Chainalysis

Bolívar’s crash pushes Venezuelans into crypto

The continued slide of the bolívar currency has intensified demand for crypto. Since the government stopped defending the currency in October, it has lost more than 70% of its value. Inflation reached 229% in May, according to the Venezuelan Finance Observatory (OVF).

“Venezuelans started using cryptocurrencies out of necessity,” said economist Aarón Olmos. He noted that they face inflation, low wages, foreign currency shortages and difficulty opening bank accounts.

However, access is not always smooth. With US sanctions on Venezuela’s financial sector, Binance restricts services linked to sanctioned banks and individuals. Connectivity issues also hinder widespread use. Still, experts say the ecosystem is resilient, per the FT report.

The government’s stance on crypto remains inconsistent. Venezuela launched its own digital currency, the petro, in 2018, but the project collapsed last year. The main exchange regulator was shut down in 2023 following corruption allegations tied to oil-linked transactions.

Cointelegraph reached out to Binance for comment, but had not received a response by publication.

Crypto remittances surge in Venezuela

As Cointelegraph reported, crypto remittances have become a crucial lifeline for Venezuelans as the country’s economy sinks deeper into crisis. In 2023, digital assets made up 9% of the $5.4 billion in remittances sent home, about $461 million.

Families are increasingly relying on cryptocurrencies over traditional services like Western Union, which are weighed down by high fees, delays and currency shortages.

Meanwhile, military tensions are rising between the US and Venezuela. On Tuesday, Venezuela’s defense minister announced the deployment of naval vessels and drones to patrol the country’s Caribbean coast following Washington’s decision to send an amphibious squadron of three warships, joined later by a missile cruiser and a nuclear-powered submarine, to the region.

The buildup comes after the Trump administration accused President Nicolás Maduro of working with cartels and expanded its pursuit of Venezuelan leaders, doubling the reward for Maduro’s capture to $50 million and offering $25 million for Interior Minister Diosdado Cabello.

Via VigilantFox.com,

As Director of National Intelligence, Tulsi Gabbard has spent months shaking Washington with bombshell after bombshell on the Russia Coup of 2017.

When Trump asked her to speak, she told him that the intel community’s corruption was worse than anyone thought.

She doubled down on her mission statement of transparency.

Gabbard:

“Mr. President, you have charged me with the mission of finding the truth and telling the truth to the American people, and we’ve exposed some of the worst examples of the weaponization of intelligence in the last several weeks.”

“I will continue down that mission and that path, wherever it leads. Transparency, telling the truth is what will drive true accountability for the American people who deserve nothing less.”

Then Trump dropped a jaw-dropper of his own.

He revealed that Gabbard’s team had recovered unburned “burn bags” stuffed with classified material tied to the 2020 election…and asked when the public would see them.

Trump: “And you’ve also found many bags of information, I think they call them burn bags. They’re supposed to be burned and they didn’t get burned having to do with how corrupt the 2020 election was, and when will that all come out?”

Gabbard:

“Mr. President, I will be the first to brief you once we have that information collected.”

“But you’re right – we are finding documents literally tucked away in the back of safes, in random offices, in these bags and in other areas, which, again, speaks to the intent of those who are trying to hide the truth from the American people and trying to cover up the politicization that was led by people like John Brennan and James Clapper and others that have caused immeasurable harm to the American people and to our country.”

Wow.

Transparency is FINALLY coming and what’s buried inside those bags could shake the nation.

This is when things got interesting.

As Director of National Intelligence, Tulsi Gabbard has spent months shaking Washington with bombshell after bombshell on the Russia Coup of 2017.

When Trump asked her to speak, she told him that the intel community’s corruption was worse… pic.twitter.com/157AXaGvQ3

— The Vigilant Fox 🦊 (@VigilantFox) August 26, 2025

Via Remix News,

Quiet and prosperous Switzerland also now has its migrant riots to contend with. In the Swiss city of Lausanne, riots have now broken out for a second night after a 17-year-old Congolese youth died during a police chase. During the first night of unrest, a right-wing politician was targeted by a large group of youths, who nearly lynched him.

At 10:00 p.m. last night., approximately 150 to 200 people set up roadblocks and began burning containers and garbage cans. They also severely damaged a bus.

Officers were hit with Molotov cocktails, paving stones, and construction fences, along with other objects, according to police.

Police hit the rioters with tear gas and rubber bullets to control the unrest. No injuries were reported.

🇨🇭On August 24, 2025, at around 4:00 a.m. in the Prelaz area of Lausanne, Switzerland, Marvin, a suspected migrant, was driving a stolen electric scooter and died when he crashed into a wall while being pursued by police. Riots subsequently broke out in the Prelaz area. pic.twitter.com/WO28jYr02V

— Argonaut (@FapeFop90614) August 26, 2025

The unrest followed similar attacks the night before, which saw a smaller crowd of about 100 youths, who partook in the rioting.

During that night, a Swiss People’s Party (SVP) politician, Thibault Schaller, was targeted in a lynching attack, which was caught on video.

He wrote on X that he approached the unrest because he was curious what was going on. Upon getting closer, some individuals, whom he said he believed to be Antifa, recognized and confronted him.

“They ordered me to leave. I refused and asked what was happening. One pushed me, I pushed him back then stepped back. Someone shouted something, and 10, 15 people came running at me from everywhere. I ran away, took hits. They blocked my path, I fell, protected myself. I got up, ran, got surrounded again against a wall, then took blows. Then, I managed to get away by running. I’m fine, but we really need to take back this city,” Schaller wrote.

In the video, Schaller is seen being chased by a large group of individuals, who kick him on the ground. Schaller continuously gets up and is able to elude the group and eventually get away.

One of the individuals called him “a fascist” during the attack.

🇨🇭During riots in Switzerland, a mob recognized a local SVP politician, @Thibauuuuuult in Lausanne, and nearly lynched him.

Riots broke out after an African teen slammed a stolen a scooter into a wall during a police chase and died.pic.twitter.com/fK5IGqcojY

— Remix News & Views (@RMXnews) August 26, 2025

The riots began after the death of 17-year-old Marvin M., a Swiss citizen with Congolese roots.

Police say they pursued him while he drove a stolen scooter on Sunday night. He died when he crashed his scooter into a garage door.

Marvin M.’s mother claimed her son is “not a scooter thief,” and “not a bandit,” in an interview with 24Heures.

She said he was a passionate rapper, with his group stating it does not condone the violence taking place in the city after his death.

Schaller wrote on X that the police were not to blame for the teenager’s death and that “this tragedy could have been avoided. He just had to listen to the police.”

The city was “held hostage by a handful of thugs,” he further wrote.

Read more here…

The “dark money” network operated by Arabella Advisors has reportedly lost one of its top funding sources: a leftist billionaire’s foundation.

Equally significant in the news cycle this morning, President Trump stated on Truth Social that George Soros and his radical leftist son, Alex Soros, “should be charged with RICO because of their support of violent protests.”

Trump: “George Soros, and his wonderful Radical Left son, should be charged with RICO because of their support of Violent Protests, and much more, all throughout the United States of America.” pic.twitter.com/KBxuyAaisF

— zerohedge (@zerohedge) August 27, 2025

A New York Times report indicates that the Gates Foundation has halted funding to nonprofit funds managed by Arabella, choosing instead to work directly with some partners rather than through intermediaries. 

In its internal announcement, dated June 24 and sent to some Gates employees who oversee grant programs, foundation officials did not mention politics. Instead, they cited a desire to engage more directly with grant recipients and cut back on the use of intermediaries like Arabella entities.

“Teams are increasingly working directly with programmatic partners — organizations that are deeply embedded in the communities we serve and closely aligned with our mission,” the note reads. “As we look ahead, this is a chance to build deeper, more durable relationships with those partners — and to reinforce the kind of legacy we want to leave behind.” -NYT

Tracing the Arabella network’s donors is tricky. But according to the NYT, the Gates Foundation has plowed $450 million into the network since 2008, which in turn funneled money into other nonprofit entities, ranging from radical leftist climate groups to abortion initiatives, and even supporting the permanent protest-industrial complex against President Trump.

💰 $114.8 Million Dark Money Infusion: The Arabella Advisors network has funneled at least $114.8 million to “No Kings” protest organizers and affiliates
according to most recent (’19-’23) financial disclosures analyzed by GAI. pic.twitter.com/qWHyuAa7Tg

— Seamus Bruner (@seamusbruner) June 13, 2025

With President Trump back in the White House and investigations focusing on corruption across the Democratic Party’s funding and nonprofit infrastructure, as well as ActBlue investigations, the risks for Bill Gates’ progressive NGO empire have never been greater. 

The move to cut ties could have happened even sooner, according to two people, one close to the foundation and one with knowledge of Arabella’s internal operations. Over the last few years, Arabella has become a target of conservative watchdogs because of its work with groups that funnel money toward progressive causes. With President Trump back in the White House, the political risks have only mounted. -NYT

Peter Schweizer and Seamus Bruner of the Government Accountability Institute recently revealed a report that detailed how the rogue anti-Trump ‘No Kings’ front group, waging a permanent protest against all things Trump, “bagged $114.8 million from the Arabella dark money network.”  

✊🏻Indivisible Project as a Protest Vehicle: Indivisible, the official organizer of the “No Kings” protests, received $14.06 million in contributions in 2023 alone, including from dark money intermediaries like Arabella’s Sixteen Thirty Fund and billionaire donors. pic.twitter.com/gNnphNVUH6

— Seamus Bruner (@seamusbruner) June 13, 2025

The Gates Foundation told NYT that the move to sever ties with Arabella was “a business decision that reflects our regular strategic assessments of partnerships and operating models.” 

NYT’s report on Arabella comes hours after NBC News confirmed Gates met with Trump at the White House on Tuesday afternoon. 

More details from the report:

• Some nonprofits are distancing themselves from Arabella to keep Gates funding.

• Several groups have started exiting Arabella’s New Venture Fund (NVF), which serves as a fiscal sponsor for 170+ projects and has funneled billions into progressive causes.

• While Gates once accounted for a significant share of NVF funding, in 2023 its contribution was only 2%. Still, losing Gates threatens Arabella’s influence and revenue streams.

Related:

• Bringing ‘Dark Money’ Operatives Out Of The Shadows

• Dark-Money Network Funneled Millions Into ‘No Kings’ Nationwide Color Revolution Operation

What’s clear is that Gates is moving to insulate his foundation ahead of what could be a period of intense scrutiny and crackdowns on rogue progressive philanthropic networks. 

Futures are flat with all eyes on NVDA – the largest S&P component by far accounting for a record 8% of the S&P – set to report after the bell. As of 8:00am, S&P futures are just barely in the green recovering from a modest loss earlier, while Nasdaq futures gain 0.1%, with NVDA up +54bps premarket, tracking most of the Mag7 higher and Semis also bid. Cyclicals are mixed (Industrials up, Fins down) with Defensives mostly higher. The yield curve is twisting steeper but with a lesser magnitude to yesterday: bonds steadied after long-dated debt from the US to France and the UK retreated Tuesday, with the yield on 10-year Treasuries little changed at 4.27%. $70 billion of 5Y notes will be auctioned at 1pm ET; yesterday’s 2Y auction saw strong demand closing 1.5bp through. The USD jumps to the highest since Friday’s Jackson Hole dovish pivot, with the Euro sliding to a 3 week low as attention turns to the political mess in Europe, and gold continues to trade rangebound. The market’s focus is on NVDA today (our preview is here).

In premarket trading, Mag 7 stocks are mixed (Nvidia +0.6%, Microsoft +0.2%, Tesla +0.1%, Apple little changed, Amazon little changed, Meta -0.2%, Alphabet -0.3%).

• Elanco Animal Health (ELAN) gains 4.9% with the company to replace Sarepta Therapeutics in the S&P MidCap 400 effective Sept. 2.
• MongoDB (MDB) shares soar 31% after the software company reported second-quarter results that were much stronger than expected. It also raised its full-year forecast.
• nCino (NCNO) gains 11% after reporting adjusted earnings per share for the second quarter that beat the average analyst estimate.
• Okta (OKTA) is up 5.4% after the software company reported second-quarter results that beat expectations and raised its full-year forecast.

There’s been plenty to rattle markets in recent days, including French political turmoil and the Trump administration’s attacks on the Fed, as well as fresh tariff threats. But investors are now focusing on Nvidia’s earnings, due after the bell (our full preview is here). The chipmaking giant is expected to provide clues on the sustainability of massive AI spending, and how the US-China rivalry is limiting growth. Options currently imply a 6.1% swing in the stock, which would represent a move of roughly $270 billion in either direction in market value, larger than about 95% of the S&P 500 companies.

“Nvidia is the story of the week. We’ve seen some erosion of the AI premium, so this is an important number to determine whether the AI story has got further to go,” said Guy Miller, chief strategist at Zurich Insurance Group. “This could either allow the technology cycle, the AI dream, to continue, or it could get significantly dented.”

Dimming the excitement is uncertainty over how much business Nvidia will be able to do in China. The US government has curbed China’s access to Nvidia products on national security grounds. While the Trump administration recently eased some of those export restrictions, Beijing has pressed domestic customers to seek alternative suppliers. 

“A miss could spark meaningful volatility, while a positive surprise would likely see the major indexes make a run at all-time highs,” said Tom Essaye at The Sevens Report. 

Elsewhere, in a reminder of the lingering tariff threat to global trade and inflation, Trump’s 50% levy on most Indian imports took effect Wednesday, penalizing the country for buying Russian oil. In Europe, the EU aims to fast-track legislation by the end of the week to scrap all tariffs on US industrial goods — a Trump demand before Washington lowers duties on the bloc’s car exports.

In Europe, The Stoxx 600 is steady after giving up earlier gains. The CAC 40 outperforms with a 0.4% rise even as the OAT-bund spreads widens slightly.

Earlier in the session, Asian stocks declined, weighed down by a sudden drop in Chinese equities, as an absence of new reasons to buy paved the way for profit-taking. The MSCI Asia Pacific Index slipped as much as 1.1%, with Tencent, Woolworths Group and Meituan the biggest drags on the gauge. Major equity indexes in the region were mixed, with those in China and Hong Kong dropping, while the Philippines and Taiwan were among the top gainers. Chinese equities slid in the afternoon session, reversing an earlier advance. One reason for the reversal may have been the fact that chipmaker Cambricon Technologies Corp. briefly became the country’s most expensive onshore stock, which then triggered some profit taking. Chinese officials are seeking to manage bubble risks as the rally extends. Sinolink Securities Co. raised its margin deposit ratio for new client financing to 100%, becoming the first broker to introduce tightening measures amid surging interest in stocks.

In FX, the Bloomberg Dollar Spot Index is up 0.3% as the greenback strengthens versus its G-10 peers. The kiwi is the weakest, falling 0.5% while the Canadian dollar is the most resilient, slipping just 0.1%.

In rates, the Treasury curve steepens further following Tuesday’s front-end rally, stoked in part by strong demand for 2-year note auction. However, new 2-year note’s yield dipped below 3.65%, the lowest for the tenor since early May. Supply cycle continues with $70 billion auction of 5-year notes, the largest of the seven nominal coupon sales, at 1 p.m. New York time. Yields are within 1bp of Tuesday’s closing levels; the 10-year near 4.27%; swap contracts linked to future Fed rate decisions continue to fully price in one quarter-point rate cut this year in October and a second one by year-end.

In commodities, WTI crude futures fall 0.4% to $63 a barrel. Spot gold drops $12. Bitcoin is down 0.5%.

US economic data calendar is blank; second estimate of 2Q GDP is ahead Thursday, July personal income and spending (includes PCE price indexes) Friday. Fed speaker slate includes Richmond Fed President Barkin repeating his Aug. 12 remarks on the economy (time TBD). Nvidia’s earnings after the US close will be the main highlight. 

Market Snapshot

• S&P 500 mini little changed
• Nasdaq 100 mini little changed
• Russell 2000 mini -0.1%
• Stoxx Europe 600 little changed
• DAX -0.3%
• CAC 40 +0.2%
• 10-year Treasury yield little changed at 4.26%
• VIX +0.2 points at 14.77
• Bloomberg Dollar Index +0.3% at 1208.98
• euro -0.4% at $1.159
• WTI crude -0.4% at $63.01/barrel

Top Overnight News

• New tariffs on Indian goods, the highest in Asia, took effect at 12:01 a.m. in Washington on Wednesday, doubling the existing 25% duty on Indian exports: BBG 
• Cracker Barrel said it is reverting to its “Old Timer” logo after a rebrand ignited a culture war. “We said we would listen, and we have. Our new logo is going away and our ‘Old Timer’ will remain,” the company said Tuesday. Cracker Barrel’s shares jumped more than 9% in after-hours trading.
• Musk’s Starship carries out successful space mission after multiple failures. Giant SpaceX rocket’s 10th test flight deploys dummy satellites and reinforces billionaire’s dominance of commercial space flight: FT
• Exxon Mobil Corp. held talks with Russia’s state-controlled oil company about returning to its Sakhalin-1 oil development: WSJ
• Commerce Secretary Howard Lutnick sparked a minor rally in shares of defense contractors with his suggestion that the US might take ownership stakes in some of them, even as industry analysts warned the idea poses serious conflict-of-interest concerns: CNBC
• Why the Democrats are losing post-industrial America. Former steel town of Bethlehem, Pennsylvania will be crucial battleground in next year’s midterms and the 2028 White House race: FT
• US offers air and intelligence support to postwar force in Ukraine. Washington prepared to contribute surveillance, command and control and air defence assets, say European officials: FT
• China’s industrial companies saw their profits fall at a slower pace in July, with industrial profits declining 1.5% last month from a year earlier, Bloomberg Economics had forecast a decline of 5.8%: BBG
• Cambricon Technologies Corp. swung to a record profit in the first half, reflecting a wave of demand for Chinese chips after Beijing encouraged the use of homegrown technology in a post-DeepSeek AI boom: BBG
• Ukraine to allow young men to leave the country. Change to border rules aims to address high number of males being sent abroad by their parents before they reach 18: FT
• Microsoft Investigating Employees After Gaza Protest Locks Down Building. The tech company is weighing disciplinary measures for employees who occupied President Brad Smith’s office in protest of Microsoft’s relationship with the Israeli government during its war in Gaza: WSJ
• America’s most senior envoy in Pakistan has told the South Asian nation that US companies are showing “strong interest” in its oil and gas sector: BBG
• French assets hit by prospect of government collapse. Investors warn government is likely to lose a snap confidence vote on September 8: FT
• Trump media group in $6bn deal to buy Crypto.com tokens. Venture will be the ‘first and largest publicly traded CRO treasury company’: FT
• US tariff threat over Indian imports of Russian oil could backfire. If New Delhi reduced its purchases to zero, oil prices and inflation would jump: FT

Top Corporate News

• Royal Bank of Canada beat estimates on strong performance across its biggest businesses and as the firm set aside less money than expected to cover possible loan losses, a rebound from notable misses on credit earlier this year.
• Newmont Corp., the world’s largest gold miner, is studying plans to drive down costs that could lead to deep job cuts.
• MongoDB Inc. soared 29% in premarket trading after the software company reported second-quarter results well above expectations and significantly raised its forecast, with analysts at Citi calling the report a “blowout” that showed a strong AI contribution.
• Cracker Barrel Old Country Store Inc. said it’s getting rid of a new logo that had sparked controversy and prompted a slump in its share price.
• Meituan’s profit got wiped out in a price-based battle with rivals Alibaba Group Holding Ltd. and JD.com Inc., the most striking sign yet that its longstanding dominance in a lucrative home market is under threat.
• Nikon Corp.’s shares surged 21% after Bloomberg reported that EssilorLuxottica SA, the maker of Ray-Ban sunglasses, is exploring a potential deal to increase its stake in the Japanese optical equipment manufacturer.
• Rio Tinto Group’s new chief executive officer has combined some of its biggest businesses as he looks to simplify the world’s No. 2 miner.
• Vitol Group is set to load the first cargo of Syrian crude oil since the lifting of western sanctions on Damascus as the country’s energy industry attempts to recover of more than a decade of destruction from armed conflict.

Trade/Tariffs

• US President Trump is considering quickly announcing a nominee to replace Fed Governor Cook with Stephen Miran and former World Bank President Malpass potential candidates, according to WSJ citing sources.
• US Senate panel is preparing to hold a hearing next week on Trump’s Fed pick Stephen Miran for the seat vacated by former Fed governor Kugler.
• The Trump administration is reviewing options for exerting more influence over the Federal Reserve’s 12 regional banks that would potentially extend its reach beyond personnel appointments in Washington, according to Bloomberg citing sources.

A more detailed look at global markets courtesy of Newsquawk

APAC stocks were mostly in the green but with trade rangebound amid recent Fed independence concerns and as participants braced for NVIDIA’s earnings. ASX 200 was kept afloat amid outperformance in the mining and materials industries, although gains are capped by heavy losses in consumer staples and tech, with supermarket operator Woolworths suffering a double-digit percentage drop after it reported a 19% decline in profits. Nikkei 225 traded indecisively, swinging between gains and losses before eventually recovering on currency weakness. Hang Seng and Shanghai Comp lacked firm conviction as the focus turns to earnings releases with the big banks set to report tomorrow, while participants are also awaiting the resumption of US-China talks later in the week.

Top Asian News

• Chinese Commerce Ministry official Sheng Qiuping said China is to announce policies to broaden services consumption in September.
• Mitsubishi Motor (7211 JT) cuts guidance (JPY): net seen at 10bln (prev. 40bln); operating at 70bln (prev. 100bln), recurring 60bln (prev. 90bln); Co. cites US tariffs, decline in sales volume, increase in selling expenses, competition, inflation.

European bourses (STOXX 600 U/C) opened modestly firmer across the board, but sentiment did dip a little bit off best levels to currently show a mixed picture. European sectors hold a slight positive bias. Consumer Products takes the top spot joined thereafter by Healthcare whilst Banks lag; the latter pressured by Commerzbank (-2.6%) and Deutsche Bank (-2.5%) after the pair received broker downgrades.

Top European News

• UK’s Ofgem raises energy price cap by 2% for Oct-Dec (vs exp. 1% by forecaster Cornwall Insight).
• EU is preparing emergency measures to support the ailing aluminium industry amid recycling plants in the bloc shutting down capacity due to US producers paying more for European scrap metal, according to FT.
• SNB’s Martin said the SNB does not see a risk of deflationary developments and forecasts show a jump in inflation in coming quarters, adds inflation dynamics in Switzerland should not be dramatically disrupted by recent dollar movements. Martin added the current Swiss franc value is more due to dollar weakness than franc strength, but forex market interventions may be necessary to ensure price stability. The SNB currently has no reason to increase or reduce gold holdings. The bar for taking rates into negative territory is higher than for cutting rates when above zero.
• UK ONS said June 2025 Producer output Price inflation estimated to be -1.0% Y/Y.

FX

• DXY is on a firmer footing and continuing to gain this morning amid a weaker EUR (see below) and following the prior day’s marginal losses owing to Fed independence concerns after President Trump moved to fire Fed Governor Cook who will be challenging the attempt in court. On top of that, it was also reported that the Trump administration is reviewing options for exerting more influence over the Federal Reserve’s regional banks that would potentially extend its reach beyond personnel appointments in Washington. DXY trades in a 98.24-98.70 range.
• EUR/USD pared recent gains amid a lack of fresh catalysts from the bloc and with France facing political uncertainty. Losses accumulated for the EUR despite a lack of headlines around the European equity open, with market contacts noting of potential stops tripped under 1.1600 after the pair found support near the level in the prior two session. German GfK Consumer Sentiment did little to sway the EUR at the time, which printed below expectations. EUR/USD currently sits in a 1.1578-1.1651 range.
• USD/JPY steadily advanced towards the 148.00 handle as the dollar regained poise with newsflow on the lighter end, but the pair influenced by a rebound in the Buck. USD/JPY trades in a 147.29-147.97 range.
• GBP is softer amid the firmer Dollar but losses cushioned by a weaker EUR. On the inflation front, UK’s Ofgem raises energy price cap by 2% for Oct-Dec (vs exp. 1% by forecaster Cornwall Insight). The price cap limits the amount suppliers can charge per unit of energy and is revised every three months. Cable trades in a 1.3431-1.3482 parameter and sandwiched between its 50 DMA (1.3493) and 100 DMA (1.3436).
• AUD/USD failed to sustain the initial knee-jerk uplift seen following hot Monthly CPI data and stronger-than-expected Construction Work which feeds into Australia’s GDP data.
• PBoC set USD/CNY mid-point at 7.1108 vs exp. 7.1559 (Prev. 7.1188)

Fixed Income

• USTs traded with a negative bias earlier but caught a slight bid as the risk tone deteriorated a touch; in a very narrow 112-02+ to 112-06+ range. Price action overnight was lacklustre, as US paper took a breather following the bull steepening seen on Tuesday, spurred by US President Trump’s move to oust Fed Governor Cook. Today’s session has seen yields rise across the curve, generally to a similar degree. Recent newsflow has not really had too much of an impact on price action today; US President Trump is considering quickly announcing a nominee to replace Fed Governor Cook with Stephen Miran and former World Bank President Malpass potential candidates, according to WSJ citing sources.
• Bunds are outperforming vs peers; initial trade was sloppy in-fitting with global peers but has recently picked up a little to trade higher by a handful of ticks. Currently trading at the upper end of a 129.33 to 129.71 range. The docket is void of any pertinent European data/ECB speakers. German GfK earlier saw sentiment drop a little from the prior, and more than expected. Germany’s new 2032 line which was very weak, had little impact on price action.
• Gilt price action today has been dictated by global peers; initially opened lower amid the subdued trade seen in USTs/Bunds, but then reversed, but without a clear driver. Currently higher by around 17 ticks, and trades in a 90.26-62 range.
• UK sells GBP 5bln 4.375% 2028 Gilt: b/c 3.16x (prev. 3.71x), average yield 3.991% (prev. 3.941%) & tail 0.2bps (prev. 0.2bps).
• Germany sells EUR 2.675bln vs exp. EUR 4.0bln 2.50% 2032 Bund: b/c 1.2x, average yield 2.46% and retention 33.13%.

Commodities

• Crude futures have tilted lower following a flat overnight session and after retreating throughout the prior day and with demand not helped by the narrower-than-expected headline crude draw in private sector inventory data, while there were also bearish views on oil including from US President Trump who thinks oil will fall beneath the USD 60/bbl level soon and with Goldman Sachs forecasting Brent to decline to the low USD 50s by late 2026. WTI currently resides in a 62.99-63.46/bbl range while Brent sits in a USD 66.40-66.91/bbl range.
• Spot gold pulled back from near the USD 3,400/oz level after advancing yesterday amid a softer dollar. The yellow metal has been unfazed by the recent bout of Dollar strength, suggesting deteriorating risk across the market. Spot gold trades in a USD 3,373.78-3,393.55/oz parameter within Tuesday’s 3,351.33-3,393.75/oz range.
• Softer trade across base metals amid the deteriorating risk and broader Dollar strength. 3M LME copper resides in a USD 9,785.00-9,865.00/t range.
• US President Trump thinks oil prices will break below USD 60/bbl soon.
• US Private Energy Inventories (bbls): Crude -1.0mln (exp. -1.9mln), Distillate -1.5mln (exp. +0.9mln), Gasoline -2.1mln (exp. -2.2mln), Cushing -0.5mln.
• Kazakhstan holds talks to resume oil transit via BTC, according to Tass citing the energy ministry; oil supplies to Europe are proceeding without delays.
• Two Chinese investors are interested in taking a stake in Vietnam’s largest tungsten business, via Reuters citing sources.
• Ukraine’s Energy Ministry said Russia attacked energy and gas transit infrastructure in six Ukrainian regions overnight.

Geopolitics – Middle East

• US special envoy Witkoff said they are negotiating multiple entries into peace accords with Israel, while Witkoff said President Trump will chair a meeting on Gaza at the White House on Wednesday.
• US Secretary of State Rubio is to meet with Israeli Foreign Minister Sa’ar at the State Department on Wednesday.
• Hamas said all Palestinians killed by Israel in Gaza’s Nasser Hospital attack on Monday were civilians and that two of the six Palestinians identified by Israel as alleged militants were killed in separate attacks away from the hospital.
• WSJ’s Norman posts “If SnapBack happens this week, very strong odds it happens tomorrow”; in relation to the Iranian snapback mechanism. “If no SnapBack, either things change dramatically or extension. Odds of dropping SnapBack without extension are tiny at this point. There is still a very real possibility that SnapBack triggered but extension agreed during 30-day process. Depends on Iran”.

Geopolitics – Ukraine

• US special envoy Witkoff said he is meeting with Ukrainians in New York this week and that Russian President Putin made a good-faith effort to engage.
• “Moscow: No agreement yet to upgrade the level of Russian and Ukrainian negotiating delegations”, according to Al Arabiya.
• Ukrainian President Zelensky said Russians are currently sending negative signals regarding meetings and further developments.

US Event Calendar

• 7:00 am: Aug 22 MBA Mortgage Applications -0.5%, prior -1.4%

DB’s Jim Reid concludes the overnight wrap

Markets had a very eventful session yesterday, as concerns mounted about the Federal Reserve’s independence, whilst French assets came under fresh pressure ahead of the upcoming confidence vote. So that led to some pretty big milestones, and with investors pricing in faster rate cuts, the US 2yr inflation swap rose to 3.05%, marking its highest level since late-2022 when inflation was still above 6% and the Fed were hiking aggressively. Meanwhile in Europe, the reappraisal of sovereign risk meant that the 10yr French yield closed just 6bps above its Italian counterpart, which is the smallest gap between the two since 2003. So that’s a huge turnaround relative to most of the period since the Euro Crisis, as the spread between the two never fell beneath 50bps until late last year. Bear in mind we’ve also got Nvidia’s earnings after the US close tonight, so there’s plenty on the agenda right now. 

We’ll start with the Fed, as investors are watching closely after President Trump’s letter on Monday night that he was removing Lisa Cook from the Board of Governors “effective immediately”. In terms of the latest, Cook’s lawyer, Abbe David Lowell, said yesterday that they would be filing a lawsuit challenging the firing. And later in the day, the Fed issued a statement reiterating that Fed governors “may be removed by the president only “for cause””, but that the Fed would “abide by any court decision” resulting from Cook’s challenge. 

The move comes as President Trump is seeking to reshape the Federal Reserve in his direction, and yesterday he commented how “We’ll have a majority, very shortly so that’ll be great once we have a majority, and housing is going to swing and it’s going to be great”. Indeed, of the seven currently on the Board of Governors, two of the appointees from President Trump’s first term (Bowman and Waller) have already dissented in favour of rate cuts, and CEA Chair Stephen Miran has been nominated to fill Adriana Kugler’s old seat. So if Cook were replaced as well, then a majority of the Board could be in favour of rate cuts after Miran’s appointment, even before Chair Powell’s term comes to an end.
Later on, multiple press reports added to this theme. For instance, the WSJ reported that President Trump was considering quickly announcing a replacement for Cook, with former World Bank President David Malpass being one candidate whom President Trump had discussed. Interestingly, Bloomberg separately reported that the administration was looking at ways to have more influence over the Fed’s 12 regional banks, which is important given that 5 of the 12 regional bank Presidents sit on the FOMC at a given time. This is particularly noteworthy at the moment, because every five years, the 12 regional bank presidents come up for approval by the Board of Governors. The next five-year approval is slated for Q1 next year, and theoretically a majority could refuse to approve some of the regional voters.

Our US economists looked in more depth at some of these issues in a note yesterday (link here ). They don’t anticipate a titanic shift in near-term policy, as Cook had been one of the most dovish officials on the Committee already. However, there could be broader implications for the Fed, as it only takes a majority of the Board of Governors (rather than the wider FOMC that also includes 5 of the regional Fed Presidents) to adjust the interest rate on reserve balances (IORB). Historically, the IORB has been set at an appropriate level to maintain the fed funds rate within the target set by the FOMC. But at least theoretically, a Board that didn’t agree with the FOMC could set IORB at a lower level.

For now at least, markets have reacted broadly in line with other episodes where the Fed’s independence has been questioned this year. So we saw a significant yield curve steepening yesterday, with the 2yr yield (-4.5bps) down to 3.68% (helped by a strong auction), the 10yr yield (-1.4bps) down to 4.26%, and the 30yr yield (+3.0bps) moving up to 4.92%. Indeed, for the 2s30s curve, that’s now the steepest it’s been since January 2022. Those moves came as investors priced in a more dovish path for near-term policy, with futures dialling up the expected rate cuts over the months ahead. For example, 109bps of cuts were priced in by the June 2026 meeting at the close, up +5.3bps on the day. So that helped put downward pressure on the dollar index, which weakened by -0.21%, whilst the prospect of more inflation helped push gold prices up +0.82%.

Interestingly, equities advanced despite the news, with the S&P 500 (+0.41%) closing just -0.04% beneath its record high. In part, that was because investors were still unsure if there’d actually be a radical policy shift at the Fed. But several data points also helped to support risk appetite, as they leant against the idea that the US economy was slowing down, particularly after the recent jobs report. For example, the Conference Board’s consumer confidence reading was better than expected in August, at 97.4 (vs. 96.5 expected). Similarly, core capital goods orders were up +1.1% in July (vs. +0.2% expected), and the Richmond Fed’s manufacturing index moved up to -7 (vs. -11 expected).

Over in Europe, however, it was a very different story as fears continued to mount about the fiscal situation in France. As a reminder, Prime Minister Bayrou has called a confidence vote for September 8, but the National Rally, France Unbowed and the Socialists have all said they’ll oppose the government. So as it stands, the government would fall, and that would open the way for a new PM, or even fresh legislative elections. So that’s reinforced existing concerns about France’s deficit, and the country’s assets saw a clear underperformance yesterday. 

Those moves were evident across the board. For instance, France’s CAC 40 (-1.70%) built on its -1.59% decline on the Monday, with banks including Société Générale (-6.84%), Crédit Agricole (-5.44%) and BNP Paribas (-4.23%) seeing even bigger losses. That outpaced the Europe-wide STOXX 600 (-0.83%), and means the CAC 40 is now up just +4.46% this year, making it one of the worst performers among the major equity indices in local currency terms. Likewise for sovereign bonds, French 10yr yields were only down -1.1bps, compared with larger falls for bunds (-3.4bps) and OATs (-3.8bps). So by the close, the Franco-German 10yr spread was up to 78bps, which is its widest since April. And significantly, the French 10yr yield closed just 6bps beneath its Italian counterpart, which is the tightest it’s been since 2003.   

Elsewhere in Europe, UK markets returned from their public holiday on Monday, with 10yr gilt yields up +4.9bps as they caught up with Monday’s moves elsewhere. We also heard from the BoE’s Mann, who was one of four members on the MPC (out of nine) who voted against a cut at the recent meeting. She said that a “more persistent hold on Bank Rate is appropriate right now”, and investors remain sceptical that there’ll be another rate cut this year. Indeed, the likelihood of another rate cut by the December meeting fell to 42% by the close, down from 48% the day before.

Overnight in Asia, the mood has generally remained positive, with investors turning their focus to Nvidia’s earnings later today. So that’s meant that most of the major equity indices are trading higher, and the CSI 300 (+0.72%) is currently on track for its highest closing level since 2022. Elsewhere, there’ve been more modest gains, including for the Shanghai Comp (+0.33%), the Hang Seng (+0.06%), the Nikkei (+0.36%), and the KOSPI (+0.11%). And US equity futures are also pointing slightly higher, with those on the S&P 500 (+0.07%) up enough to push the index to a new record if realised.

Elsewhere this morning, data has also shown an unexpectedly large jump in Australia’s inflation, with CPI up to +2.8% in July (vs. +2.3% expected). Moreover, the trimmed mean measure also moved up to +2.7%, having been at +2.1% in June. That’s the highest headline inflation in 12 months, and investors have dialled back the likelihood of a rate cut at the RBA’s next meeting in response, with the probability of a cut now down to 22%.

To the day ahead now, and it’s a quiet one on the calendar. Nvidia’s earnings after the US close will be the main highlight. Otherwise, data releases include the GfK consumer confidence reading from Germany. 

Authored by Jonathan Turley,

We have previously discussed the lack of a credible defense for Milwaukee County Judge Hannah Dugan, who has been charged with facilitating the escape of an undocumented man being sought by federal officers in her courthouse. Indeed, despite having high-powered lawyers such as Paul Clement,  her recent social media posts seem more like a pitch for jury nullification. One bright spot for Dugan was that she was assigned to U.S. District Judge Lynn Adelman, a liberal Democrat who has run for prior office and has been accused of bias on the bench.

However, Judge Adelman just delivered a blow to the defense by rejecting Dugan’s claim that she had judicial immunity in taking her actions.

According to the criminal complaint, a six-person arrest team (including an ICE officer, a Customs and Border Protection officer, two FBI special agents, and two DEA agents) came to the courthouse to arrest Eduardo Flores-Ruiz, a Mexican immigrant facing three misdemeanor battery counts they intended to deport.

He is accused of hitting someone 30 times during a fight that erupted over complaints that his music was too loud and assaulting three separate individuals, the Milwaukee Journal Sentinel reported.

Flores-Ruiz was previously deported and then entered again illegally, a federal felony. He was issued an I-860 Notice and Order of Expedited Removal on January 16, 2013, and Flores-Ruiz was “removed to Mexico through the Nogales, Arizona, port of entry.” Not only is reentry a felony but when there is an order of expedited removal, you can be deported without any further court hearing.

After facilitating his escape, Dugan was later arrested and charged with obstructing or impeding a proceeding (18 U.S.C. 1505) and concealing an individual to prevent his arrest (18 U.S.C. 1071).

Calls for resistance and even replication have also come from colleagues on the bench. Monica Isham, a circuit judge in Sawyer County, not only defended Judge Hannah Dugan in an email to other state judges but added that she “has no intention of allowing anyone to be taken out of my courtroom by [Immigration and Customs Enforcement agents] and sent to a concentration camp.”

Recently, Dugan went public with an interview that notably lacked any discernible defense, other than stating that she helps defendants use the “backdoor” when she considers circumstances that “warrant it.”

Judge Adelman ruled on that:

“Ultimately, as the Supreme Court has stated, ‘the official seeking absolute immunity bears the burden of showing that such immunity is justified for the function in question.’ I cannot say as a matter of law that the defendant’s alleged conduct falls within even this more limited version of immunity…There is no basis for granting immunity simply because some of the allegations in the indictment describe conduct that could be considered ‘part of a judge’s job.’”

The lack of any cognizable claim in Dugan’s public pitch suggests that she might be hoping for a juror to simply vote to acquit as a visceral or political statement.

This is a liberal jury pool where jury nullification must be a concern for prosecutors even though such an argument cannot be made overtly by the defense to the jurors.

Via Remix News,

In the wake of Ukraine attacking yet again the Druzbha or “Friendship” pipeline on Aug. 22, Ukrainian President Volodymyr Zelensky has come out with a not-so-subtle warning of his own. 

According to the Ukrainian Interfax, the Ukrainian president told press on Sunday that Ukraine has always supported friendly relations with Hungary, but that “friendship” really depends on the position of the Hungarian government.

Zelensky did not specify if he was referring to relations between the two countries or “friendship” as in the Friendship pipeline, but Ukrainian media state he was talking about the latter. 

Hungary’s foreign minister, Péter Szijjártó, posted a clip of Zelensky’s threats on X, writing:

“Zelensky used Ukraine’s national holiday to threaten Hungary. We firmly reject the Ukrainian president’s intimidation.”

.@ZelenskyyUa used Ukraine’s national holiday to threaten Hungary. We firmly reject the Ukrainian President’s intimidation.

We regard sovereignty and territorial integrity as fundamental values of international politics. That is why we respect every country’s sovereignty and… pic.twitter.com/oUsgKNgqcV

— Péter Szijjártó (@FM_Szijjarto) August 24, 2025

Kyiv would then be clearly threatening Budapest that they will continue sabotaging the oil pipeline if the Hungarian government does not support Ukraine in its efforts against Putin, and potentially change its stance on Ukraine’s EU membership, which the Hungarian government opposes.

The Druzbha carries vital energy supplies to both Hungary and Slovakia, and Hungary’s foreign minister, Szijjártó, has repeatedly warned Kyiv not to strike again.

After the latest damage, Hungary expects repairs to take a few days. 

Heading into the cold winter months, this issue is sure to escalate, and U.S. President Trump has already expressed his displeasure, saying he was “very angry” about it. 

Hungary is also a major supplier of electricity to Ukraine. 

Read more here…

In the latest demonstration of growing Western opposition to Israel’s devastating campaign in Gaza, the world’s largest sovereign wealth fund on Monday announced it is divesting from Caterpillar, over concerns that the Israel Defense Forces are using Caterpillar bulldozers to violate human rights. Norway’s $2 trillion wealth fund — which springs from the country’s oil wealth — held a 1.17% stake in the Texas-headquartered company, valued at $2.1 billion as of June 30. 

While Caterpillar’s products are classified as “construction” equipment, the IDF regularly uses massive, armored Caterpillar D-9 bulldozers to destroy homes and other civilian infrastructure — not only in Gaza, but the occupied West Bank as well: 

How the fuck can anyone call this self-defense or a strike against Hamas?

An Israeli army D9 bulldozer is blatantly destroying roads right in front of the Jenin Governmental Hospital.#FuckIsrael pic.twitter.com/oOKJqHUcyd

— Robert Martin 🇵🇸 (@Robert_Martin72) May 21, 2024

Sovereign wealth funds are rare among the world’s democracies. In Norway, divestment decisions are largely driven by the recommendations of an independent ethics council established by the Finance Ministry. After evaluating Caterpillar, the Council on Ethics reported: 

“There is an unacceptable risk that Caterpillar is contributing to serious violation of the rights of individuals in situations of war or conflict… Bulldozers manufactured by Caterpillar are being used by Israeli authorities in the widespread unlawful destruction of Palestinian property...There is no doubt that Caterpillar’s products are being used to commit extensive and systematic violations of international humanitarian law. The company has also not implemented any measures to prevent such use.”

⚡️🇮🇱JUST IN:

An Israeli soldier from the Givati Brigade demolishes homes in Rafah, southern Gaza, and uploads the footage to social media.

The bulldozers used are typically Caterpillar D9 models, or other types supplied by Hyundai or Volvo. pic.twitter.com/DOs9mPvE2c

— Suppressed News. (@SuppressedNws) April 12, 2025

Caterpillar has long been one of the principal targets of the Boycott, Divestment and Sanctions (BDS) campaign, which — echoing the 1980s divestment campaign against South African apartheid — attempts to use economic pressure on Israel to advance the Palestinian cause. In an infamous 2003 incident, an IDF soldier used a Caterpillar D-9 to fatally crush 23-year-old American activist Rachel Corrie as she tried to prevent the IDF from destroying homes in Rafah, Gaza.  

One of the most striking dimensions of Israel’s post-Oct 7 war on Gaza is the systematic, wholesale destruction of entire neighborhoods, villages and cities. Far from an incidental side-effect of the IDF campaign, this drive to render Gaza uninhabitable is intentional, as powerful Israeli Finance Minster Bezalel Smotrich told a West Bank settlement conference in May: 

“Within a few months…Gaza will be totally destroyed. The Gazan citizens will be concentrated in the south. They will be totally despairing, understanding that there is no hope and nothing to look for in Gaza, and will be looking for relocation to begin a new life in other places.”

Ever wonder what genocide looks like? ⬇️ Southern Gaza City, before and after pic.twitter.com/1bGQlmR7qb

— Zachary Foster (@_ZachFoster) October 5, 2024

Alongside US-supplied bombs and controlled demolitions, Caterpillar D-9 bulldozers play a central role in turning Gaza into a vast expanse of rubble. In July, a BBC report used before-and-after satellite imagery to confirm the IDF’s methodical obliteration of vast swaths of Gaza, in violation of international law and basic morality. Professor Janina Dill, co-director of Oxford Institute for Ethics, Law & Armed Conflict, told BBC that occupying armies are compelled to supervise held territory in a way that benefits the native population, a charge that is “incompatible with a military approach that simply makes the territory uninhabitable and leaves nothing standing”.

On Monday, Norway’s wealth fund announced it was also divesting from five Israeli banks: Hapoalim, Bank Leumi, Mizrahi Tefahot Bank, First International Bank of Israel and FIBI Holdings. The fund said the banks were also associated with a high risk of facilitating human rights violations. Earlier this month, Norway announced the sale of its stake in Bet Shemesh Engines, an Israeli jet-engine firm that serves the IDF. It opened that position one month after the IDF began its assault on Gaza following the Oct 7, 2023 Hamas invasion of Israel. 

Perhaps the best indication of the centrality of Caterpillar D-9 bulldozers in the IDF arsenal is the high frequency with which they appear as targets in videos showcasing Hamas operations in Gaza: 

Hamas targeted a Israeli Merkava Mk4 tank and a D9 Caterpillar dozer with Al-Yassin 105mm rockets in Rafah. pic.twitter.com/J95Z79eXp3

— Mintel World (@mintelworld) May 25, 2024

Qassam vs IDF in Khan Yunis: Yassin strike with a Tandem-85 warhead vs an IDF D9 armoured bulldozer on 17 June. [Qassam Brigades 27/6] pic.twitter.com/8jJVVXrPJV

— Jon Elmer (@jonelmer) June 28, 2025

#Palestine / #Israel 🇵🇸🇮🇱: Al-Qassam Brigades (#HAMAS) carried out an ambush against an #IDF Caterpillar D9 armored bulldozer in Beit Hanoun, #Gaza.

The attack was seemingly carried out with an RPG-7 Launcher with locally-made “Al-Yassin 105” Tandem anti-armor rocket. pic.twitter.com/BgP6nzoSH2

— War Noir (@war_noir) April 30, 2024

Allah akbar
Footage shared shared by #Hamas shows the moment a Caterpillar D9 Armored-Bulldozer belonging to #Israel forces was targeted and allegedly destroyed by an IED in #Gaza. 😎😎😎 pic.twitter.com/gcKyzwBYTB

— mohamed nasir – ناصر محمد (@nasir11991) November 4, 2023

Saraya al Quds vs IDF in Khan Yunis: Fighters burying the pressure plate detonator connected to a barrel bomb IED that is tripped by an IDF D9 armoured bulldozer shown from two cameras. Final scenes are the medevac and the D9 being towed away by a Namer APC. [Islamic Jihad 31/5] pic.twitter.com/4A02ZzauBf

— Jon Elmer (@jonelmer) May 31, 2025

Footage of Hamas fighters hitting the cockpit of an Israeli military armored bulldozer Catherpillar D9. pic.twitter.com/0uB4gxmU3x

— Combat Archive (@Zoma3mk) May 11, 2025