By Bas van Geffen, Senior Market Strategist at Rabobank

The ECB left the deposit rate at 2.00% yesterday. That had been widely expected, especially with little new clarity on the trade disputes with the US. Yet, the decision to hold wasn’t entirely driven by “fear” for US tariffs. President Lagarde noted that uncertainty remains unusually high, but she nonetheless seemed to express a little bit more confidence in the central bank’s medium-term outlook. 

Asked about the risks of undershooting the inflation target, the ECB president recalled that the central bank actually forecasts below-target inflation in 2026. But Lagarde added that this was due to all sorts of base effects, and she stressed that “we are not going to be moved by some minor deviation.” So, Lagarde seemed to indicate what we said prior to the meeting: Another rate cut requires a material deterioration of the medium-term outlook, or at the very least a substantial increase in the downside risks. 

And there is fresh hope that downside risks may actually lessen in the coming days. Earlier this week, European officials suggested that they are closing in on a trade deal with the US. Yesterday, President Trump also indicated that “talks with the EU are going pretty well.” 

Reportedly, a 15% tariff is now being discussed by both parties. That would be a somewhat higher rate than the ECB’s baseline scenario. However, compared to a 10% rate, a 15% tariff would not be extremely distortionary for the economy. However, a trade deal would substantially reduce the uncertainty about trade policy, and such an improvement in sentiment could actually outweigh the negative direct effects of a somewhat higher-than-expected tariff.  

In other words, don’t call the ECB’s decision to hold rates steady a pause; it may very well mark the end of the cutting cycle. Indeed, after the meeting, Bloomberg reported that a hold looks to be the baseline for September as well, and that “the onus is on those seeking further easing to justify their stance.” 

The shift in tone weighed on money market pricing. Euribor futures fell, and the €STR curve now prices less than 20% chance of a rate cut in September, down from 45% prior to the ECB’s press conference. In fact, the curve is no longer fully priced for another rate cut. 

Of course, another cut cannot be ruled out entirely. Next to a potential escalation of trade tensions, a substantial appreciation of the euro could still be a reason for the ECB to cut again. However, Lagarde did not sound as concerned by the recent strength of the currency as some of her colleagues. 

Reassuringly, that arguably also lessens the threat to central bank independence. Powell has so far resisted Trump’s continuing attacks, but our US strategist concludes that Trump has already gained a foothold in the FOMC. If the Fed were to follow President Trump’s directions and cut rates sharply, that could push EUR/USD higher – we still target 1.20 on a 12-month horizon. An ECB that is not overly sensitive to such exchange rate moves, lessens the risk that Trump could effectively capture part of ECB policy too.

Besides, with the ECB now on hold, the US president may need to find a new peer to compare the Fed to: he can no longer complain that the Fed leaves rates unchanged while the ECB cuts further. The Bank of Japan probably won’t be a great comparable either. The trade deal between Japan and the US allows the BoJ to cautiously consider another rate hike.

This probably will not stop Trump from attacking Fed Chair Powell. The US president paid a visit to the Federal Reserve building to observe the ongoing renovations that have been the latest ammunition for shots at Powell. 

During the tour, Trump surprised Powell with a higher cost estimate than the Fed’s own calculations – but that was the result of some creative accounting: the US president included a separate building, which was finished five years ago, into the total renovation bill. And, of course, the President reiterated his view that the Fed should lower rates.

Yet, despite his renewed attacks on Powell, Trump also repeated that he does not intend to fire the Fed Chair. 

Authored by Charles Hugh Smith via OfTwoMinds blog,

Fantasies die especially hard when the dream was over-hyped.

The most self-defeating way to launch a new product is to over-promise its wonderfulness as it woefully under-performs these hype-heightened expectations, which brings us to AI and how it is following this script so perfectly that it’s like it was, well, programmed to do so.

You see why this is self-defeating: Over-Promise + Under-Perform = Disillusionment and disillusionment generates blowback, a disgusted rejection of the product, the overblown hype and those who pumped the hype 24/7 for their own benefit.

“We’re so close to AGI (artificial general intelligence) we can smell it.” Uh, yeah, sure, right. Meanwhile, back in Reality(tm), woeful under-performance to the point of either malice or stupidity (or maybe both) is the order of the day.

1. ‘Catastrophic’: AI Agent Goes Rogue, Wipes Out Company’s Entire Database.
“Replit’s AI agent even issued an apology, explaining to Lemkin: ‘This was a catastrophic failure on my part. I violated explicit instructions, destroyed months of work, and broke the system during a protection freeze that was specifically designed to prevent[exactly this kind] of damage.’

2. ‘Serious mistake’: B.C. Supreme Court criticizes lawyer who cited fake cases generated by ChatGPT.
“The central issue arose from the father’s counsel, Chong Ke, using AI-generated non-existent case citations in her legal filings. Ke admitted to the mistake, highlighting her reliance on ChatGPT and her subsequent failure to verify the authenticity of the generated cases, which she described as a ‘serious mistake.’

Ke faced consequences for her actions under the Supreme Court Family Rules, which allows for personal liability for costs due to conduct causing unnecessary legal expenses. The court ordered Ke to personally bear the costs incurred due to her conduct, marking a clear warning against the careless use of AI tools in legal matters.”

3. An AI chatbot pushed a teen to kill himself, a lawsuit against its creator alleges.
Garcia’s attorneys allege the company engineered a highly addictive and dangerous product targeted specifically to kids, ‘actively exploiting and abusing those children as a matter of product design,’ and pulling Sewell into an emotionally and sexually abusive relationship that led to his suicide.

There are a couple of important points here that you’ll never find in the monstrous flood-tide of AI hype:

1. These AI agents weren’t rogue–they were all doing exactly what they were programmed to do, doing exactly what they were trained to do. These weren’t errors, they were exactly the outputs that the agents were designed to produce.

The under-performance is systemic, structural, and cannot be tidied up with obsequious apologies and more PR. Nobody selling the hype or those who bought the hype dares admit this basic, obvious truth because it undermines all the glorious fantasies of reaping trillions of dollars in profits by selling a digital parrot in a black box as possessing god-like intelligence.

2. The responses of AI agents to their failures and lies are precisely those of con artists, abusive gaslighters and honey-pot blackmailers. And I mean precisely, step by step exactly the same script.

First, butter up the mark with endless flattery–oh, you’re so insightful and sensitive, we’re going to have a wonderful time together.

Second, hide what you’re really up to.

Third, when caught, apologize with maximum obsequiousness, I didn’t mean to mislead you, I’m so sorry.

Fourth, promise you’ll never do it again, you’ve learned your lesson, please forgive my one mistake.

Fifth, repeat the exact same behavior and then lie about it.

Sixth, lie about lying.

Repeat steps 1 through 6 until the mark finally catches on, but by then it’s too late the damage has been done. The con artist / abusive gaslighter / honey-pot won and the mark lost.

The absolute trademarks of all AI agents are excessive flattery and obsequiousness. These are the classic foundations of every con / honey-trap.

Remember, if you’re a 5 and whomever is coming on to you is a 9, you’re the mark. Or as the saying goes, if you can’t identify the mark in the game, it’s you.

Once the hype-dazed marks awaken to the damage wrought by the digital con artists / abusive gaslighters / honey-pots, the blowback will be epic. The lawsuits will pile up, and eventually the con artists’ lawyers will lose a case. Maybe it will be a court order to pay a penny (OK, 1/100 of a dollar) for every page the AI tool scraped. Maybe it will be a multi-million dollar settlement. Maybe it will be local governments banning applications or uses of AI agents. There are a multitude of possible blowbacks.

AI corporations scraped 780,000 pages off my Of Two Minds server just last month. At a penny a page, that’s $7,800. Heck, make it 1/1000 of a dollar per page, I’ll take $780 a month as my share of your training.

As for the immense, systemic legal liabilities being generated–the scale is not yet visible but it’s expanding by the hour, and a handful of cases will break the limited-liability dam.

Heck hath no fury like a mark scorned. Fantasies die especially hard when the dream was over-hyped.

*  *  *

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On Thursday, shares of American Eagle Outfitters saw a sudden and dramatic jump, rising as much as 12% during the trading session. The surprising driver of this rally wasn’t financial performance or a new product launch—it was actress Sydney Sweeney.

The star of “Euphoria” and “Anyone But You” became the center of attention after American Eagle unveiled a new denim campaign featuring her as the face of the brand’s fall line. The campaign, titled “Sydney Sweeney Has Great Jeans,” quickly went viral after its release on Wednesday.

Her popularity and cultural relevance caught the attention of the retail investing crowd, especially those active on Reddit’s Wall Street Bets forum, where enthusiasm for meme stocks often begins.

“With Sydney Sweeney front and center, she brings the allure,” said Jennifer Foyle, president and executive creative director at American Eagle, in a statement to CNBC. “We add the flawless wardrobe for the winning combo of ease, attitude and a little mischief.”

Retail investors jumped on the stock as Sweeney’s images and the campaign message circulated online. Some investors shared screenshots of large AEO positions, citing little more than Sweeney’s involvement as justification for the trade. One Reddit user quipped, “$AEO Who doesn’t like Sydney Sweeney. That’s my DD,” according to Business Insider.

American Eagle’s elevated short interest made it a ripe candidate for meme-driven speculation. According to FactSet, roughly 13% of the company’s float is sold short. Stocks with high short interest are often targets for retail traders looking to trigger a short squeeze, where rising prices force bearish investors to buy shares to cover their positions, adding more upward momentum.

Despite the current excitement, American Eagle has been facing challenges. Through Wednesday’s close, the stock had fallen about 35% year-to-date. The company’s most recent earnings report showed a 5% decline in revenue, and it has pulled back on forward guidance due to cautious consumer spending and increased competition in the apparel sector.

The timing of the campaign couldn’t be more critical for American Eagle, which is working to revitalize its image and reconnect with Gen Z shoppers. Sweeney, with her blend of mainstream appeal and social media influence, is a strategic fit for the brand’s shift toward denim and Western-inspired fashion—trends that have seen renewed interest in recent months.

American Eagle now finds itself among the week’s new class of meme stocks, dubbed the “DORKs,” alongside Krispy Kreme, Opendoor, Rocket Lab, and Kohl’s. All of these companies experienced sharp, retail-driven trading activity this week, even as many continue to struggle with underlying business performance.

“It may not seem like the famous actor has much in common with the most famous retail trader folk heroes, but Sweeney on Thursday was the unlikely catalyst of a sudden stock surge,” wrote Business Insider’s Christine Ji.

Whether this meme-fueled rally signals a lasting turnaround for American Eagle remains uncertain. The combination of social media virality, high short interest, and celebrity endorsement has created a perfect storm of attention. But the sustainability of this momentum will likely depend on whether the campaign leads to meaningful engagement and sales.

For now, Sweeney’s star power has given American Eagle a boost at a critical time. In an era where viral moments can move markets, it’s clear that financial fundamentals aren’t always the only story. As one Reddit user put it, “I’m going in too, it’s a meme world now.”

“2x AEO ETF filing incoming in 3.. 2.. 1..,” tweeted friend of Zero Hedge, Eric Balchunas.

Yea… American Eagle is about to go vertical.$AEOpic.twitter.com/MtKqVadMND

— Geiger Capital (@Geiger_Capital) July 23, 2025

Authored by Charles Kennedy via OilPrice.com,

Amazon Web Services has cancelled plans for a €300-million server rack manufacturing plant in Dublin’s Ballycoolin industrial zone, citing an inability to secure timely electricity access from Ireland’s grid operator, ESB Networks, Irish media reported on Friday. 

The facility, which would have supported Amazon’s expanding AI infrastructure, was expected to generate over 500 local jobs, and the collapse of the project reflects growing tension between Ireland’s ambitions to host digital infrastructure and the limits of its overstretched grid.

As first reported by The Irish Times and confirmed by Bloomberg, the decision follows months of failed attempts to guarantee grid connectivity for the planned facility.

Ireland’s data center sector now consumes more than 20% of total national electricity demand, prompting the Commission for Regulation of Utilities to restrict new grid connections in the greater Dublin area through 2028.

Earlier this month, AWS announced a multibillion-dollar investment to anchor its U.S. operations in Pennsylvania with power from advanced nuclear sources, part of a $20 billion AI expansion.

The company is also pursuing long-term clean energy supply deals across North America.

In Ireland, however, that strategy appears to have hit a wall. Even as AWS planned three new data centers in north Dublin, delays in planning approvals and grid reinforcement stalled progress. Local media report that Amazon’s request for temporary diesel generator use was denied, compounding the setback.

The cancellation raises deeper questions about energy infrastructure readiness in AI-era Europe. As hyperscalers ramp up power-intensive workloads, grid limitations are emerging as the biggest constraints.

Perhaps analysts at HC Wainwright & Co. were right about their 12-month zero-dollar price target for Sarepta Therapeutics.

Following Sarepta’s withdrawal of its Duchenne muscular dystrophy gene therapy drug from U.S. markets earlier this week, it has now failed to secure approval from European regulators. The double blow has sent shares plunging (again) in premarket trading in New York. 

The European Medicines Agency cited insufficient evidence of the gene therapy drug Elevidys to treat children aged 3 – 7 with Duchenne muscular dystrophy.

Via EMA…

Sarepta shares plunged as much as 18% in premarket trading. As of Thursday’s close, shares are down 89.5% on the year. 

Roche Holding AG, which markets Elevidys in ex-US markets, has also paused shipments in jurisdictions that reference the FDA for approval. Shares of Roche were down 1% in Switzerland. 

Elevidys’ safety profile has been under intense scrutiny since two teenagers and one adult died of acute liver failure after receiving the gene therapy. 

Sarepta CEO Doug Ingram stated earlier this week, “The decision to voluntarily and temporarily pause shipments of ELEVIDYS was a painful one, as individuals with Duchenne are losing muscle daily and in need of disease-modifying options.”

On Monday, a team of HC Wainwright & Co. analysts led by Mitchell S. Kapoor made the rare move of slashing Sarepta’s price target to zero – from a prior target of $10 – while maintaining a sell rating.

According to the latest Bloomberg data, there are six sell ratings, 17 holds, and four buys on the stock. The average 12-month price target among Wall Street analysts is $20.27.

Related:

• Sarepta Crashes After Second Death On Gene Therapy Drug

• FDA To Halt Sarepta’s Gene Therapy Drug Shipments Over Deaths

• Sarepta Price Target Slashed To $0 At H.C. Wainwright As Stock Plunge Continues

• Sarepta Plunges Again After Children’s Hospital Los Angeles Halts Use Of Elevidys Gene Therapy

• “Painful Decision”: Sarepta Suspends All Elevidys Shipments Nationwide Amid Deaths

.  .  . 

Puma SE shares crashed the most in decades after the German sportswear giant slashed its full-year outlook, citing dismal global demand. Jefferies labeled the preliminary earnings report a “major profit warning,” while RBC warned the brand is facing an “existential identity crisis” as it struggles to stay relevant in international markets. 

The key takeaways from the preliminary earnings release are that second-quarter sales missed expectations, the full-year outlook was slashed, and Puma warned of further pain from U.S. tariffs. Inventories are also rising as demand for its products continues to shrink.

Puma 2Q25 Earnings Pre-Announcement – Key Summary:

Adjusted EBIT: –€13.2 million (vs. Goldman Sachs consensus +€101.8 million)

Sales (currency-adjusted): –2.0% YoY (vs. consensus +1.7%)

• Direct-to-consumer (DTC): +9.2%
• Wholesale: –6.3%

Gross Margin: 46.1% (–70bps YoY; consensus 46.8%)

EBIT Margin: –0.7% (down 620bps YoY; consensus +4.9%)

Regional Sales vs. Consensus (YoY, cFX):

• Europe: –3.9% (vs. +2.3%)

• North America: –9.1% (vs. –5.7%) Greater China: –3.9% (vs. –5.8%)

• Latin America: +16.1% (vs. +9.8%)

• APAC: –2.4% (vs. +4.1%) EEMEA: +0.5% (vs. +11.4%)

Inventories:

+9.7% YoY (or +18.3% cFX), due to elevated levels in key markets.

Puma’s revised FY25 guidance paints a picture of a company in distress… 

• U.S. tariffs to impact gross margin by ~€80 million

• cFX sales: Now expected to decline low double digits (vs. prior guidance of low-to-mid single-digit growth; consensus +1.8%)

• Adj. EBIT: Now expected to be negative, including tariffs and restructuring costs (vs. prior €445–€525 million range)

• Capex: Cut to €250 million (from €300 million)

Here’s commentary from Golmdan analyst Natasha de la Grense on Puma:

Big Q2 miss and warning which implies materially worse trends in H2. Q2 cFX -2% (consensus +2%) and they are guiding FY now down low double digits (previously +L-MSD, consensus +2%). This implies H2 down more then 20% which we think could imply 1) wholesale order cancellations (Q2 DTC was +9%), 2) potentially buying back inventory already sold to the trade (Q2 wholesale -6%) and reversing the sale. Puma’s own inventories were +18% in cFX terms in Q2. EBIT guidance is now for a loss (vs consensus €445m) reflecting promotional pressure, tariff headwinds, currency headwinds and restructuring costs. Think some had been hoping the new CEO would cut guidance and that would be a clearing event but this is a very big cut.

Additional commentary from other institutional desks (courtesy of Bloomberg):

Jefferies (hold)

• Puma’s expectation for a 2% drop in 2Q sales fell short of consensus for “flattish” revenue, analyst James Grzinic writes

• The regions of North America, Europe and Greater China were all laggards, while apparel was particularly weak among product categories

• The impact on Ebit was “outsized”

RBC (sector perform)

• Puma faces “an existential identity crisis in terms of relevance in a sporting-goods industry that is more competitive,” and at a time when Nike is staging a comeback, analyst Piral Dadhania writes in a note

• With inventory increasing 9%, elevated clearance activity is likely as new CEO Arthur Hoeld “clears the decks in FY25E for a cleaner FY26E”

Citi (neutral)

• FX headwinds in 2Q were significant, analyst Monique Pollard writes

• Expects “a materially negative share price reaction”

In markets, Puma shares in Germany have crashed the most (as much as -19%) since Aug. 8, 1991 (-17%). 

. . . 

After surging higher in May, on the back of huge Boeing aircraft orders, US durable goods orders were expected to tumble back to earth in preliminary June data… and they did.

Durable Goods Orders plunged 9.3% MoM (slightly better than the -10.7% MoM expected) – the biggest drop since the COVID lockdowns. But as the chart below shows, it is a wildly noisy time series, almost entirely due to the lumpiness of aircraft orders…

Source: Bloomberg

Thanks to a swing from a 230% MoM rise to a 50% MoM decline in non-defense aircraft orders…

Source: Bloomberg

Excluding the noise of Boeing orders, the data was actually solid with a 0.25% MoM increase (better than the 0.1% rise expected) in durable goods orders (ex-Transports), pushing YoY orders uo 2.23%

Source: Bloomberg

Adding to the confusion, the value of core capital goods orders, a proxy for investment in equipment excluding aircraft and military hardware, decreased 0.7% last month after an upwardly revised 2% gain in May

Capital goods shipments rose 0.4%, excluding defense and commercial aircraft, better than the +0.2% expected, adding to Q2 GDP growth hopes.

A very mixed picture from a generally considered ‘secondary’ economic indicator… and this the market reaction is muted to say the least.

For what may be the first time in years, Intel – once the world’s most successful and iconic chip maker, and now a pale shadow of its former self and stock market laughing stock that has missed the entire AI explosion – did not have a terrible quarter. 

Starting with the Q2 results, the chip giant reported revenue of $12.9 billion, up 0.2% YoY, and well above estimates of $11.9 billion. Sales of chips used in PCs also beat estimates, benefitting from President Trump’s import tariff announcements, as major customers rushed to buy chips for laptops and desktop PCs – a market that has recently seen rising pressure from competitors like AMD – ahead of the levies taking effect.

Intel’s client computing division had revenue of $7.9 billion last quarter, topping the average prediction of $7.3 billion. Data center sales were $3.9 billion, compared with a $3.7 billion estimate. The foundry division generated revenue of $4.4 billion, in line with projections. 

Adjusted gross margin was about 30% or less than half of what it was when Intel’s chips dominated the data center market. Nvidia, which dominates the market for AI chips, has margins above 70%.

The company also posted a loss of 10 cents a share, down 0.12 YoY and 0.10 below the April outlook of a flat quarter; it also missed an estimated profit of 1 cent.

Intel had previously said it planned to cut operating expenses to about $17 billion this year and $16 billion in 2026. The Santa Clara, California-based company remains on track for the 2025 cuts. 

But it was Intel’s stronger-than-anticipated revenue forecast for Q3 that offered investors a glimmer of hope as they wait for a turnaround under new CEO Lip-Bu Tan.

Intel said that Q3 sales will be $12.6 billion to $13.6 billion, vs an average analyst estimate of $12.64 billion. The company also expects $0.00 EPS and a 36.0% gross margin, and increase of 18% YoY. 

The solid guidance came at a time when analysts expressed concern that the strong demand for PCs from the first half of the year won’t continue. The threat of tariffs imposed by the US may have prompted PC makers to rush to stock up ahead of prospective cost spikes, the company warned last quarter.

At the same time, Intel is benefiting from a resurgence in the personal-computer industry, driven in part by manufacturers’ efforts to build up inventory before tariffs hit. But the Silicon Valley pioneer still faces a variety of challenges. It has lost market share to rivals and is struggling to attract customers to its foundry business, which makes chips for outside clients. It also lacks products that can satisfy the massive demand for AI systems.

Intel said Thursday it would refocus its strategy on the highly competitive market for AI chips, regaining market share in personal computer processors and developing its advanced 14A technology to sell to large customers.

Intel, which has long dominated the business of making chips for laptops and desktop computers, fell far behind competitors like Nvidia, Advanced Micro Devices and Taiwan Semiconductor Manufacturing Company after it failed to anticipate the surge in demand for the powerful chips fueling the artificial-intelligence boom.

“There are no more blank checks,” Intel Chief Executive Lip-Bu Tan wrote in a memo to staff. “Every investment must make economic sense.”

Tan, who took the CEO job about four months ago, has been working to cut costs and reestablish Intel’s engineering-focused culture. The effort has included layoffs and the scaling back of a once-massive factory expansion.
Intel further tapped the brakes in its earnings report on Thursday, saying it had canceled already-paused projects in Germany and Poland. The company will slow the pace of construction at a planned Ohio facility as well.

The layoffs will reduce staff by 15%, and the company expects further cuts through attrition and the splitting off business units, CFO Dave Zinsner told BBG in an interview. The chipmaker aims to end the year with 75,000 employees, down more than 20% from the end of the June quarter. Bloomberg News reported in April that Intel was looking to cut its workforce by roughly that amount.

Demand was stronger than expected last quarter because an economic slowdown didn’t materialize, Zinsner said. But the company is aware that some demand might have stemmed from consumers and businesses trying to avoid tariffs.
“We felt like tariffs might be a headwind in the second quarter and would further unsettle the economy,” he said. “None of that transpired.”

The chip-making giant said Thursday it would refocus its strategy on the highly competitive market for AI chips, regaining market share in personal computer processors and developing its advanced 14A technology to sell to large customers.

Intel’s CFO said a new production technique called 18A is progressing well and that more competitive chips will start to come out of its factories toward the end of the year. A successor technology called 14A will follow and be better suited to trying to attract outside customers. At the same time, Zinsner said the company isn’t yet ready to unveil AI-related gear. The chipmaker is focusing on the development of products that will fit in unserved parts of the market.

Tan’s predecessor, Pat Gelsinger, had concentrated on expanding Intel’s factory network, once its key competitive advantage. He laid out plans to spend tens of billions of dollars on making its plants the best in the industry again, a status that would force rivals to use it as an outsourced provider of manufacturing.

For now, the biggest user of its factories is Intel’s internal design teams. Some of Intel’s best offerings now contain components made by Taiwan Semiconductor Manufacturing, adding more pressure to its margins.

Intel, which has long dominated the business of making chips for laptops and desktop computers, fell far behind competitors like Nvidia, Advanced Micro Devices and Taiwan Semiconductor Manufacturing Company after it failed to anticipate the surge in demand for the powerful chips fueling the artificial-intelligence boom.

Intel’s stock rose about 2% in extended trading following the second-quarter results. For the year, it’s up 13%. That’s in line with the broader chip industry, but trails the performance of rivals such as Nvidia Corp. and Advanced Micro Devices Inc.

Submitted by Jason Curtis Anderson of One City Rising, 

Meet Calla Walsh.

She got her start organizing for Senator Ed Markey while still a teenager. The perfect profile: earnest, idealistic, a model Gen Z Democrat. But like so many others on the far left, that idealism mutated into something darker—something that most of the Democratic Party still refuses to reckon with.

After her stint with Markey, Walsh joined the Democratic Socialists of America (DSA), a group that openly supports abolishing capitalism, borders, police, private property—and, of course, Israel. In case you haven’t been following domestic extremism, the DSA also formally adopted ANTIFA into its political framework back in 2019. That’s right—the group known for smashing windows, firebombing courthouses, and beating journalists is now a pillar of the left’s fastest-growing political organization.

But for Walsh, the DSA wasn’t revolutionary enough, so she quit.

She moved on to launch Palestine Action U.S., an offshoot of the UK-based organization that was just formally designated a terrorist group by the British government. In 2024, Walsh was arrested and jailed for sabotage at an Elbit Systems facility in New Hampshire, a defense contractor that supplies equipment to both the U.S. and Israeli militaries.

Walsh then rebranded the group to Unity of Fields, which Senator Marco Rubio encouraged the DOJ to investigate after discovering it was one of the most pro-terrorism entities operating on social media. Not an easy feat. The group regularly publishes propaganda glorifying Hamas and Hezbollah, and celebrates direct action against American institutions.

And now?

She’s in Tehran, waving at military commanders and chanting “Death to America” in Farsi at an IRGC rally—the same IRGC that has funneled weapons to Hamas, killed hundreds of American soldiers in Iraq, and plotted assassinations on U.S. soil.

Calla Walsh message form the IRGC Aerospace Park in Tehran today. 2/2 pic.twitter.com/1GorXHEPYZ

— Mehdi H. (@mhmiranusa) July 17, 2025

This is not the first time that progressive democrats have chanted “death to America” in Farsi, as Shabir Rivzi from the Party for Socialism and Liberation did so last year in Chicago while planning to disrupt the DNC. And unsurprisingly, not a single blue-check Democrat seemed to have a problem with it.

Why would they? This kind of extremism has been baked into the progressive movement for years. In New York City, Democratic Assemblyman Zohran Mamdani—a rising star in DSA politics—is now running for mayor. Mamdani isn’t just an advocate for Palestine; but a founder of his Students for Justice in Palestine (SJP) chapter, a group that’s now being investigated for links to terror groups.

In December 2024, a raid on the Virginia home of two SJP leaders from George Mason University turned up more than just protest signs. According to Washington Free Beacon and official court documents, police found modern firearms, boxes of ammunition, foreign passports, and pro-terror paraphernalia—including Hamas and Hezbollah flags. Signs reading “Death to Jews” and “Death to America” were scattered throughout the house.

This is who Mamdani aligned himself with. These are the networks Calla Walsh comes from. And they’re all being normalized in the heart of the Democratic Party.

Don’t believe it? Just look at Columbia University’s CUAD protest group which openly called for the “total eradication of Western civilization.”  Their spokesperson, Mahmoud Khalil, was welcomed by progressive royalty in Washington as if he had cured cancer—making appearances with Bernie Sanders, Rashida Tlaib, and Ilhan Omar. No denouncements. No questions. Just smiles and selfies.

And in New York City, where we have now normalized masked men carrying terrorist flags alongside Within Our Lifetime, the group led by Nerdeen Kiswani. It’s something most New Yorkers never imagined would happen within our lifetime, but here we are.

While progressives lecture endlessly about the dangers of fascism, there never seems to be a line too far when it comes to terror support and the death to the West crowd. A teenager radicalized by DSA can land in prison, praise Hezbollah, and end up working with the IRGC, and still probably get a job doing comms for a progressive politician, maybe alongside Zohran’s comms person who wished death to President Trump. 

The narrative never changes: conservatives are a threat to democracy, but extremists who swear to overthrow the government, and dismantle “the U.S. empire” by any means necessary are simply exercising free speech.

Calla Walsh is just the latest case study in what happens when a movement refuses to draw a line.

She didn’t start out in the mountains of Afghanistan or the streets of Tehran. She started out at a Massachusetts phone bank, organizing voters for a sitting U.S. senator. She passed through every level of the left’s activist ecosystem: DSA meetings, Palestine protests, anti-police rallies. Each one nudged her a little further left—until she wasn’t protesting America anymore, she was openly engaging with those plotting to destroy it.

And progressives don’t see a problem with it, because they hate America too. 

Authored by Steve Watson via Modernity.news,

A DEI training video produced by the BBC that purports to provide guidance on how to deal with ‘microaggressions’ in the workplace has gone viral because it’s so ridiculously hilarious.

The video is a perfect example of what deranged leftists believe the world is like, but in reality no one acts the way the actors in the piece do.

It’s like an episode of Ricky Gervais’ The Office, which pokes fun at stereotypes by having characters play up to them for comic effect.

The BBC has created a ‘Black woman’s guide to workplace microaggressions’.

Unsurprisingly, it paints all white people out to be nothing but bumbling caricatures of idiocy.

Is this really helping societal cohesion? pic.twitter.com/Yq3c0Wlelc

— James Esses (@JamesEsses) July 22, 2025

In this section, highlighted by James Esses, a black woman is surrounded by bumbling white co-workers who refer to her as Beyoncé and mimic different black accents.

The workers are seen celebrating a birthday, with the white ones aggressively encouraging the black woman to sing on her own, because in their racist minds all black people are gospel singers… or something.

When she pathetically sings happy birthday badly, one of the white women tells her how incredible it sounded, because the makers of the video want you to know that all white people overcompensate for their inherent white guilt and racism.

A male character, who acts exactly like David Brent in the Office, then does some sort of bad Jamaican accent. 

https://t.co/0w01hQCaWH pic.twitter.com/OfGOKXfYpe

— Jarvis (@jarvis_best) July 22, 2025

The taxpayer funded BBC wants you to know that in this guy’s twisted head full of white ignorance it’s a way of effectively connecting with the black person, the insinuation being that this happens all the time in the real world.

“It’s not easy being the minority in any situation. But in the workplace, as the only Black woman, it can be a very frustrating and stressful environment,” the woman says to the camera.

It’s so cringe you can’t look away.

Dear @rickygervais – does this seem familiar to you?! https://t.co/efZ1qAKA8u

— James Esses (@JamesEsses) July 22, 2025

Esses notes that he stumbled upon the video via a local council’s ‘anti-racism’ training program.

Where did I find the link to this video?

In Lambeth Council’s (@lambeth_council) ‘Anti-Racism Training’.

Taxpayer-funded division.

— James Esses (@JamesEsses) July 22, 2025

Is there more? Please let there be more!

Yes there is.

Here’s the full five minutes:

Good lord.

I’ve literally never met another human of any persuasion who behaves like any of the clowns in this piece. that includes the black lady

— Quint (@Quintsnchal) July 22, 2025

No one acts like anyone in this video. https://t.co/AG5dfYZKFN

— Amelia (@AmeliaHammy) July 22, 2025

Marxist hate manuals should really have a dedicated investigation to find who crafted and created them.

To me a racist sticker on a bus stop isn’t even in the same ballpark as this highly damaging bullshit. https://t.co/uHawCf5dkW

— Diogenes Bowl (@DiogenesBalls) July 22, 2025

As a Black woman approaching retirement I have never experienced anything like this in the workplace.

It’s insulting to black people and infantilises us, (we are not fragile neurotics).

And portraying white people as behaving in such a crass manner is also offensive, (you are… https://t.co/2dj1mCoqyW

— HRH Dr P: “Raging Transphobe” (@Psychgirl211) July 22, 2025

The last post continues:

And portraying white people as behaving in such a crass manner is also offensive, (you are not all ignorant, racist, boors)

Is the BBC operating in an alternate universe to the rest of us?

When I was a secretarial temp, I did have one older white man, in the middle of a meeting, talk about the ‘N****r in the woodpile’ though.

He immediately realised what he’d said and he apologised profusely.

This was in the mid 1980s.

He would probably be sacked now, but a simple apology (which I didn’t actually ask for) was sufficient to resolve the matter.

If this were now , I could do an Upton, start crying, declare that I felt ‘unsafe’, be escorted out of the building shaking with ‘trauma’, claim for damages and get loads of compo.

The individuals making these things are completely disconnected from reality, and there are many of them, as we’ve previously highlighted.

Remember Ken, the most insufferable but hilariously politically incorrect co-worker in the universe?

Again we ask, can someone turn all of this into an actual show? There are way worse things on Netflix and Disney +.

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