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Key Events This Week: ISM, FOMC Minutes And Fed Speakers

Key Events This Week: ISM, FOMC Minutes And Fed Speakers

The week after payrolls is usually a quieter affair but there’s plenty of global events even if the US calendar is light.

In terms of the main highlights, given the current focus on monetary policy the FOMC minutes (Wednesday) and the ECB’s June meeting account (Thursday) will be carefully watched, especially the former given it was the first of the new Warsh regime. Speeches from Fed Governors Waller (Monday), Williams and Logan (Thursday) will provide a more “live” update to the committees’ thinking. Elsewhere, China inflation data (Thursday) and a run of German activity indicators including factory orders (today), industrial production (tomorrow) and trade (Thursday) are worth tracking. German reforms in recent weeks have offered some renewed optimism that we will finally see the benefits of the huge fiscal spending and reform agenda after skepticism had been building. Geopolitically, the NATO summit (Tuesday–Wednesday) will also be in focus, with Trump in attendance, and could generate plenty of headlines.

In terms of other data and events, today sees ISM services (Monday) which follows the recent weakness in manufacturing, where DB economists expect a modest improvement. Most of the other data in the US is second tier but includes existing home sales on Thursday. Outside of the US, the BoE’s financial stability report (tomorrow) will be interesting, while inflation prints from Sweden (Wednesday) and Denmark and Norway (Friday) deserve a glance. In Japan, the data flow includes labor cash earnings and household spending (tomorrow), the Economy Watchers survey (Wednesday) and PPI (Friday). Elsewhere, we will see the RBNZ policy decision (Wednesday), where economists expect a rate hike, and Canada’s labor market report (Friday).

Courtesy of DB, here is a day-by-day calendar of events

Monday July 6

  • Data: US June ISM services, UK June new car registrations, construction PMI, Germany May factory orders, June construction PMI, Eurozone May PPI, retail sales, Canada June services PMI
  • Central banks: Fed’s Waller speaks, ECB’s Schnabel, Wunsch and Lane speak, BoE’s Mann speaks, BoC business outlook

Tuesday July 7

  • Data: US May trade balance, China June foreign reserves, Japan May labor cash earnings, household spending, leading index, coincident index, Germany May industrial production, France May trade balance, Canada May international merchandise trade
  • Central banks: ECB’s Panetta and Kocher speak, BoE’s financial stability report
  • Auctions: US 3-yr Notes ($58bn)
  • Other: NATO summit (through July 8), French Court ruling on Marine Le Pen’s eligibility to run for President

Wednesday July 8

  • Data: US May wholesale trade sales, consumer credit, Japan May BoP current account balance, BoP trade balance, June bank lending, Economy Watchers survey, France May current account balance, Sweden June CPI, May GDP indicator 
  • Central banks: FOMC minutes, ECB’s Kocher, Moulin, Nagel and Dolenc speak, RBNZ decision
  • Auctions: US 10-yr Notes (reopening, $39bn)

Thursday July 9

  • Data: US June existing home sales, initial jobless claims, China June CPI, PPI, UK June RICS house price balance, Japan June M2, M3, machine tool orders, Germany May trade balance
  • Central banks: ECB’s account of the June meeting, Fed’s Williams and Logan speak, BoE’s Breeden speaks
  • Earnings: PepsiCo
  • Auctions: US 30-yr Bond (reopening, $22bn)

Friday July 10

  • Data: Japan June PPI, Italy May industrial production, Canada June labour force survey, May building permits, Denmark June CPI, Norway June CPI
  • Central banks: ECB’s Vujcic and Stournaras speak
  • Earnings: Delta Air Lines

Looking at the US, Goldman writes that the key economic data release this week is the ISM services index on Monday. There are a few speaking engagements with Fed officials this week, including events with Governor Waller and Presidents Williams and Logan. The minutes to the FOMC’s June meeting will be released on Wednesday.

Monday, July 6 

  • 09:45 AM S&P Global US services PMI, June final (consensus 51.3, last 51.3)
  • 10:00 AM ISM services index, June (GS 54.0, consensus 54.0, last 54.5): We estimate that the ISM services index declined to 54.0 in June. Our non-manufacturing survey tracker was unchanged in June but remained below the latest ISM services reading at 52.9.
  • 11:00 AM Fed Governor Waller speaks: Fed Governor Christopher Waller will take part in a policy panel at a conference in Rome. On May 22, Waller said that while he did not think the FOMC should hike “in the near future,” he could “no longer rule out rate hikes further down the road if inflation does not abate soon,” especially if inflation expectations showed “signs of becoming unanchored.” At the same time, Waller said there would need to be “improvement on inflation or a significant deterioration in the labor market” for him to support cuts. 

Tuesday, July 7 

  • 08:30 AM Trade balance, May (GS -$78.5bn, consensus -$78.8bn, last -$55.9bn)

Wednesday, July 8 

  • 10:00 AM Wholesale inventories, May final (last +0.3%)
  • 02:00 PM FOMC meeting minutes, June 16-17 meeting: The FOMC left the funds rate unchanged at 3.5-3.75% and removed the previous forward guidance suggesting cuts from its statement at the June FOMC meeting. But the meeting delivered a hawkish surprise, with nine participants projecting a hike in 2026 (vs. our expectation of three). That said, we suspect that FOMC participants treated the news about a deal with Iran and the reopening of the Strait of Hormuz—which emerged only a few days before the meeting—cautiously. Chairman Warsh also noted earlier this week that “inflation expectations have come down, and inflation risks have come down” at a panel discussion in Sintra, Portugal. We will look for details in the minutes on the assumptions underlying participants’ economic outlook and views of the balance of risks at the time.

Thursday, July 9 

  • 08:30 AM Initial jobless claims, week ended July 3 (GS 225k, consensus 220k, last 215k); Continuing jobless claims, week ended June 27 (consensus 1,815k, last 1,814k)
  • 09:00 AM New York Fed President Williams (FOMC voter) speaks: New York Fed President John Williams will take part in a moderated discussion at a conference on market liquidity and functioning hosted by the New York Fed and The Clark Center for Global Markets at the University of Chicago Booth School of Business. On June 25, Williams said that the current stance of monetary policy was “well positioned” to restore inflation to the Fed’s 2% target. Williams said he expected inflation to “edge down” as tariff effects faded, supply disruptions from the Middle East got resolved, and slow rent growth translated into a lower pace of shelter inflation. He noted that medium-term inflation expectations “have remained well anchored through May.” 
  • 10:00 AM Existing home sales, June (GS +2.5%, consensus +0.7%, last +3.2%)
  • 01:30 PM Dallas Fed President Logan (FOMC voter) speaks: Dallas Fed President Lorie Logan will moderate a panel on market liquidity at a conference hosted by the New York Fed and The Clark Center for Global Markets at the University of Chicago Booth School of Business. On June 3, Logan noted that “inflation appears to be trending toward the mid 2’s—not all the way back to 2 percent” and that “above-target inflation can become entrenched if it persists too long.” At the same time, Logan said economic activity “remains strong,” financial conditions are “accommodative,” and the labor market “appears stable and broadly balanced.” Logan stressed she was “increasingly concerned that higher interest rates could be necessary later this year to fully restore price stability and appropriately balance both sides of the Fed’s dual mandate.”

Friday, July 10 

  • There are no major economic data releases scheduled.

Source: DB, GS, Barc

Tyler Durden
Mon, 07/06/2026 – 09:45

Russia & Ukraine Trade Some Of Biggest Strikes Of War On Eve Of NATO Summit

Russia & Ukraine Trade Some Of Biggest Strikes Of War On Eve Of NATO Summit

Russia has unleashed another massive drone and missile attack wave on Ukraine’s capital, just on the eve of the major annual NATO summit, which is in Ankara, Turkey this week.

Over a dozen people were killed, with heavy damage against residential structures observed. The death toll could rise, but “In total, 14 people have died and 117 have been injured in Kyiv,” the office of the attorney general said on Monday morning. Rescue crews have been retrieving bodies from under rubble throughout Monday.

via Associated Press

The Russian Defense ‌Ministry announced that it used long-range weapons ‌and drones to carry out a “massive” attack on ​Kiev and other cities, saying that military bases and energy facilities were successfully struck.

According to details of the timing of the attack wave:

The Kyiv Independent reported that the first explosions were heard at about 1:40am local time, followed by more strikes at 2:10am and 3:15am.

Thousands of residents fled to underground shelters, it reported, as air raid sirens sounded across Ukraine. At least 15 buildings were damaged in Kyiv in the strikes, including four in the capital’s historic Podilskyi district, Tkachenko said.

As for the significant numbers of projectiles focused on the Ukrainian capital alone, another source reports:

Ukraine’s air force said Russia used 68 missiles, including 23 ballistic and six super and hypersonic missiles, as well as 351 drones in the attack. Air force units shot down or neutralized 37 missiles and 326 drones, but none of the ballistic missiles or super and hypersonic missiles, the air force data showed.

Neighboring Poland briefly scrambled fighter ​jets as a preventive measure.

Rumors of warehouse with depleted uranium having been struck

Rumors persist…

But Ukraine has been launching its own significant drone salvos against Russia, with devastating effect against its energy infrastructure.

In its second large-scale attack in under a week, drones were sent against an oil terminal and port in St. Petersburg, with damage being observed in the Baltic Sea ports of Vysotsk and Ust-Luga. More attacks also impacted Sevastopol on the Black Sea, resulting in a power blackout there.

According to some further details in CBNC being reported:

Ukrainian officials reported that forces struck a major oil terminal in Russia’s second-largest city, St. Petersburg, as well as the Kronstadt Naval Base, the main base of the Russian Baltic Fleet, on Friday and Saturday. The attacks reportedly caused fires at both the oil terminal and the military facility.

Further Ukrainian attacks on Russian energy infrastructure were reported on Monday morning. Ukraine’s military said via Telegram that it had struck oil refineries in Russia’s Yaroslavl and Leningrad regions overnight. CNBC couldn’t independently verify the report.

It was only on Saturday that President Trump said he had a “business-like and constructive” nearly 90-minute phone call with his Russian counterpart Putin.

The prospect of renewed US mediation efforts to find peace in the Ukraine conflict was discussed, and Trump was even (once again) invited to visit Russia for an in-person summit.

While the prospect of renewed talks and diplomatic effort was raised, the two warring sides seem further from dialogue than ever, and the Zelensky government is finally sensing that it has found a ‘weak point’ – hammering Russian energy and creating a national fuel shortage crisis.

Tyler Durden
Mon, 07/06/2026 – 09:30

When A Toll Isn’t A Toll

When A Toll Isn’t A Toll

By Benjamin Picton, senior market strategist at Rabobank

When A Toll Isn’t A Toll

Yields on 10-year Treasuries finished last week up 11bps to 4.48% while yields on 10-year Bunds rose 8.5bps to 2.93%. Those higher borrowing costs came despite signs of weakening in the US jobs market, a weaker-than-expected prices paid figure on the ISM manufacturing index, and a surprisingly weak Eurozone CPI inflation report that follows in the wake of lower than expected inflation readings in the UK.

Market-based expectations of the future path of the Fed Funds rate finished the week a little lower than it started, with pricing of a future rate hike pushed out from October to December. 2-year Treasury yields fell by almost 4bps on Thursday after the payrolls report confirmed hiring in June was little better than half the expected figure.

This was still enough for the unemployment rate to tick down to 4.2% as a lower participation rate saw the labor force contract. Nevertheless, 2-year yields were higher across the week as sovereign curves bear-steepened.

Brent crude posted its first weekly gain in almost a month last week to see the front contract close up 0.18% at $72.12/bbl. The gains appear to have been short-lived as news of continued tanker flows through the Strait of Hormuz and a decision by OPEC+ over the weekend to ease production restrictions by 188,000 barrels/day from August steer the price action lower this morning. Announcements of increased production are all well and good, but when much of that production is occurring in the Persian Gulf or in Russia (where Ukrainian strikes against oil infrastructure are ongoing) the ability to actually ship the product to market will remain the critical limiting factor.

On that note, official figures show that Hormuz traffic is back to approximately 30% of pre-war levels, though this likely understates the true picture as many vessels are transiting dark (i.e. without their tracking systems on) to avoid the attentions of Iran’s IRGC. Bloomberg reports that six vessels transited the route closest to the Omani coastline under US auspices on Sunday without incident. That follows reports of up to eight vessels performing u-turns (with some later being redirected through the Iranian route) after attempting to transit close to Oman on Friday and Saturday.

Updated data from Kpler and Vortexa shows that crude exports from the UAE surged in June to exceed pre-war levels and approach record highs. The UAE’s recent decision to leave OPEC and OPEC+ is considered bearish over the longer term for energy prices as a diminished share of potential production is subject to non-market constraints.

On the other hand, Iran again indicated over the weekend that it will be instituting “service fees” on vessels transiting Hormuz through its territorial waters once the 60-day negotiating period kicked-off by the signing of the Iran-US memorandum of understanding expires. According to Iran’s ambassador to China a new fee regime is being designed in consultation with Oman and will include “special considerations” for China and other friendly nations in determining the level and type of fee applied. According to the ambassador, this is not a toll. This might prove be a convenient fiction for all parties given President Trump’s unyielding view that a permanent toll regime would not be acceptable after the 60-day negotiating period expires.

Critically, what this little titbit sets up is exactly the type of scenario we have been pointing towards for some time: the ‘oil market’ splitting into ‘oil markets’ with terms over pricing and access being determined by which geopolitical camp you happen to sit in, and a series of quid pro quos informing the deal that each party gets.

The prime movers here are the United States and China, with Iran having clearly chosen China and the UAE hitching its wagon to the US of A. An easy tell that this scenario is playing out will be pressure from Iran to have other Gulf producers accept a toll that isn’t a toll, and/or have their cargoes priced in CNY rather than USD. The USA, similarly, will pressure Gulf allies to price in Dollars and normalize relations with Israel to expand the Abraham Accords and have oil flow from east to west to cut out Iran entirely and demonstrate to China that Uncle Sam can step on the hose whenever he likes.

Europe and the balance of Asia are likely to be reduced to the role of spectators in these affairs. Highlighting the weakness of Europe’s current position in the Great Game, the Wall Street Journal carried a story last week on how the German Mittelstand is being decimated by state-backed Chinese competition, with the most energy-exposed sectors of the manufacturing economy faring particularly badly.

To a certain extent, the hollowing out of German industry at the hands of China mirrors the hollowing-out of British finance at the hands of the United States as more and more firms choose to list in New York in pursuit of higher multiples or are bought-up as value picks. This has elicited a response from the British Government in the form of the Mansion House compact aimed at encouraging pension funds to hold more British assets. If that fails, will the discussion then turn to capital controls under an Andy Burnham premiership?

Similarly, the rapid decline of the German Mittelstand will almost certainly elicit further protectionist measures from officials in Brussels who have just spent the last 18 months and more criticizing Washington for taking similar steps to protect American industry. In the absence of a hold-your-nose peace accord with Russia to reduce energy costs that will almost certainly not happen, what is Europe’s grand macro strategy to avoid being de-industrialised by China and vassalized by US energy and finance?

Tyler Durden
Mon, 07/06/2026 – 09:15

Porsche To Eliminate 4,000 Jobs In Germany: Report

Porsche To Eliminate 4,000 Jobs In Germany: Report

Germany was once the industrial engine of Europe, but years of disastrous climate change policies, high energy costs, and left-wing economic mismanagement have battered its manufacturing base. This pressure has been roiling the country’s auto industry, where struggling carmakers are restructuring operations through workforce reductions, production cuts, and capacity reductions.

Germany’s top financial newspaper, Handelsblatt, reports that Porsche is preparing another round of deep job cuts at its main factories as the sports car maker grapples with weak demand.

The company is considering eliminating as many as 4,000 additional jobs at its Zuffenhausen plant, the outlet said, citing people familiar with the matter. These reductions would come on top of previously agreed cuts impacting 3,900 jobs.

Porsche’s Zuffenhausen plant in Stuttgart is home to the brand’s core sports car production lines, including the 911, 718, and Taycan.

Administration and management roles are expected to be reduced the most, while Porsche may also cut capacity at its Weissach development site by up to 30%.

Last month, Porsche CEO Michael Leiters said the company plans to produce at a lower capacity than the roughly 280,000 cars sold last year. He stated that the company must “make money with fewer cars.”

Porsche’s profit eroded further in the first quarter as the automaker faced mounting pressure from tariffs, geopolitical turmoil, and gaps in its model lineup. The emergence of Chinese EV giants like BYD and Chery in Europe is another troubling development for EU automakers.

Porsche is part of the Volkswagen Group, where the VW CEO recently warned that more than 100,000 jobs could be eliminated in a massive overhaul.

Tyler Durden
Mon, 07/06/2026 – 09:00

Saylor’s Strategy Sells 3,588 Bitcoin To Cover Preferred Dividends

Saylor’s Strategy Sells 3,588 Bitcoin To Cover Preferred Dividends

Authored by Micah Zimmerman via Bitcoin Magazine.com,

Strategy sold 3,588 bitcoin for $216 million to fund dividends on its preferred securities, the company disclosed in a Form 8-K on July 6, 2026.

The sale marks the largest bitcoin disposal in the company’s history and its most direct admission that its dividend obligations now shape its treasury.

Chairman Michael Saylor posted about the transaction on social media. As of July 5, the company held 843,775 bitcoin in its reserves and $2.55 billion in cash. Saylor said the proceeds covered second-quarter dividends on four preferred instruments and the full June payment on a fifth.

The disclosed sale funded quarterly dividends on STRF, STRE, STRK, and STRD. It also covered the monthly dividend on STRC. Together these securities form the core of what Strategy calls its Digital Credit business.

Each instrument carries a distinct payout structure. STRF, the senior tier, pays a fixed 10% annual dividend on a $100 stated amount. STRE pays 10% a year on a €100 stated amount, denominated in euros. 

STRK pays 8% and converts to common stock if shares reach $1,000. STRD pays 10% but is not cumulative, giving the board room to skip a payment. 

STRC sits in the middle of the stack and pays a variable rate near 12%, reset to keep the security trading close to its $100 par. The board recently shifted STRC to semi-monthly payments.

None of the preferred securities is backed by the company’s bitcoin. Each holds only a claim on residual assets.

Why Strategy is selling

Strategy is the largest corporate holder of bitcoin. The company has built its treasury through repeated stock and debt offerings. Its bitcoin sits at a cost basis near $63.9 billion, or roughly $75,700 a coin.

That model created a growing cash bill. The preferred securities pay dividends in cash, not bitcoin. Strategy’s software business does not generate enough to cover them. 

Grayscale’s head of research, Zach Pandl, estimated the annual dividend load at $1.5 billion. When cash reserves run short, the company must raise more capital or sell coins.

For years Saylor pledged to never sell. That stance ended in late May 2026. Strategy sold 32 bitcoin for about $2.5 million, its first disposal since 2022, to fund preferred dividends. 

The move broke the pledge and drew wide attention. Saylor framed it as a signal of commitment to preferred holders rather than a retreat from bitcoin. “Our goal is to make STRC the best credit instrument in the world,” he said at the time.

The July sale dwarfs that first step. At 3,588 coins and $216 million, it is roughly a hundred times larger.

According to the company’s latest filing, Strategy sold 3,588 Bitcoin between June 29 and July 5. About 1,363 Bitcoin were sold during the first two days of the program at an average price around $59,256, with another 2,225 Bitcoin sold over the following five days at $60,773.

Buying and selling at once

Strategy continues to accumulate even as it sells. After the May sale, the company bought 1,550 bitcoin for $101.3 million, nearly 50 times the size of the disposal. It made a $2 billion purchase in May and a $2.54 billion purchase in April. 

The pattern shows a firm that funds dividends from its stack while adding to it through fresh capital raises.

That approach depends on market access. Strategy can issue new preferred shares and common stock to raise cash. When those markets cooperate, the company avoids large sales. When they tighten, bitcoin becomes the source of funds. 

The July disposal suggests the second condition held during the quarter.

Last night, Saylor posted “Bitcoin is Digital Energy” on X, accompanied by Strategy’s orange-dot Bitcoin acquisition chart, prompting expectations that another SEC filing disclosing a new Bitcoin purchase is imminent. Traders have come to view these weekend posts as a recurring signal ahead of Strategy’s BTC accumulation announcements. This time, the announcement was about a bitcoin sale.

At the time of writing, Strategy shares are down 2% in premarket and bitcoin has dipped below $62,000.

Tyler Durden
Mon, 07/06/2026 – 08:47

“Should Never Have Happened”: Illegal Alien Truck Driver Kills Pennsylvania Trooper

“Should Never Have Happened”: Illegal Alien Truck Driver Kills Pennsylvania Trooper

Submitted by American Truckers United,

A Pennsylvania State trooper is the latest victim of the trucking industry’s open borders experiment. This dangerous policy began under the Biden-Harris regime when hundreds of thousands of illegal aliens were issued CDLs, mostly from ten states. The fast-tracking of CDLs for illegal aliens has flooded the industry with drivers who may lack the necessary training, language proficiency, or commitment to American safety standards, endangering lives on our highways every day. Shockingly, this experiment is still running.

Trooper Michael E. Pahira, Jr., 44, was inspecting a semitruck on Interstate 81 on July 1, 2026, when another truck went off the roadway and hit the first vehicle, creating a domino effect and striking the officer. Pahira’s patrol car was parked behind the cab with its emergency lights on as he inspected the vehicle parked on the right shoulder in Cass Township when the deadly chain reaction occurred. The second truck, allegedly driven by 33-year-old Michael Bon, veered off the road, striking Pahira’s side mirror before crashing into the other truck. Both truck cabs caught fire as a result of the impact. Construction workers nearby saw the smoke from the wreck and raced to help the pinned trooper. Pahira was rushed to a local hospital where he was pronounced dead.

As with all of these truck crashes, there is no reporting mechanism either on the crash reports or CMV inspections that document the immigration status or even the type of CDL that was in the driver’s possession at the time of the crash. So when this crash first occurred, there was no discussion of the truck driver’s immigration status. Several experienced industry professionals began asking the same question that’s been asked recently in light of all the crashes being caused by the surge of illegal aliens who were able to be fast-tracked into the trucking industry. Only then did his immigration status come into question and later confirmed

The trucking community, represented by organizations such as American Truckers United, has been raising alarms about this growing threat to highway safety. Without proper tracking, the true scope of the problem remains hidden from the public.

How many crashes like Trooper Pahira’s go unreported as part of the globalist open-border experiment in the trucking industry?

This accident was preventable.

He should never have been in possession of a CDL. Every accident caused by an illegal alien is a preventable accident. Congress must act on the President’s call during the State of the Union to pass Dalilah’s Law. This law would have revoked the CDL this driver had in his possession and would have saved Trooper Pahira’s life.

Pass Dalilah’s Law today. 

Revoke their CDLs. 

Tyler Durden
Mon, 07/06/2026 – 06:30

Citi Expects Oil To Sink To $60 As Hormuz Traffic Normalizes

Citi Expects Oil To Sink To $60 As Hormuz Traffic Normalizes

Brent Crude prices could plunge to as low as $60 per barrel by the end of the year, according to the latest note from Citi’s commodity research team which expects flows through the Strait of Hormuz to soon normalize and the US and Iran to reach a deal in the coming months.

“Fundamentals are rapidly reasserting themselves as Hormuz disruptions fade, with Brent back to the low $70s/bbl. While the US-Iran process remains fragile and disputes over Hormuz administration and transit fees persist, we expect the MOU to hold and turn into a deal over the coming months as incentives to de-escalate outweigh the alternative for the US, Iran, and much of the ME region. Shipping flows are normalizing, Chinese buyers remain absent, physical crude markets have weakened sharply, and inventories have drawn far less than expected,” Citi’s Francesco Martoccia wrote in his latest note.

“We continue to recommend selling any summer rallies and forecast Brent reaching $60 to $65 a barrel by the turn of the year,” Citi analysts said in the note (available to pro subs).

The investment bank has traditionally been one of the most bearish voices in the market, and especially now that it expects shipping through Hormuz to normalize now that the Strait is open again. Moreover, China’s crude buying remains weak, physical prices have crumbled due to the surge of prompt supply from the Middle East, while “inventories have drawn far less than expected,” Citi said.

Inventories, including in the United States, have crashed to multi-decade lows since the war began four months ago. Buying to refill depleted stockpiles could support oil prices going forward, more bullish analysts say. 

However, the coming global race to rebuild depleted oil inventories will not be enough to offset a massive glut that’s coming to the market next year, as traffic through the Strait of Hormuz appears to be headed toward normalization, Goldman Sachs said this week.

The investment bank expects the global oil surplus to be about 3 million barrels per day (bpd) next year, Samantha Dart, co-head of global commodities research at Goldman, told Bloomberg Television in an interview on Wednesday.

“We do expect a little over 1 million barrels a day just of SPR rebuilding globally, but still, that would leave us close to 2 million barrels a day of a surplus,” Dart added.

Other Wall Street banks have also started to predict a glut next year after the U.S. and Iran signed the MoU.

Morgan Stanley, for example, has slashed its oil price forecasts for the next 18 months as it expects the reopening of the Strait of Hormuz to accelerate a new supply glut.

Tyler Durden
Mon, 07/06/2026 – 05:45

The Three SHTF Scenarios That Could Change The World Faster Than Anyone Expects!

The Three SHTF Scenarios That Could Change The World Faster Than Anyone Expects!

Authored by Madge Waggy,

For decades, the greatest threats to global stability were often imagined as distant possibilities—events reserved for history books, military simulations or the darkest years of the Cold War. Today, that assumption is becoming increasingly difficult to defend. International defense spending has reached levels not seen in decades, armed conflicts continue to reshape regional security architectures, and governments across Europe, North America and Asia are investing heavily in civil defense, cybersecurity and the protection of critical infrastructure. These are not preparations made in anticipation of ordinary times, but responses to a world that has become measurably more volatile than it was only a few years ago.

History offers a sobering reminder that societies are rarely transformed by a single catastrophic event. More often, they are changed by a sequence of crises that appear unrelated until they begin reinforcing one another—geopolitical confrontation, economic instability, infrastructure failures and the gradual erosion of public confidence. Whether viewed through the lens of preparedness, national security or historical precedent, one conclusion remains remarkably consistent: the most consequential moments are often recognized only after they have already begun.

Top Three Unstoppable SHTF Scenarios

Three crises that could change everyday life faster than most people believe possible.

 

1. Nobody Notices the Beginning

 

One of the biggest misconceptions about large-scale disasters is that they begin with a single dramatic event. Movies have trained us to expect sirens, mushroom clouds and emergency broadcasts interrupting television programming. Reality has been far less theatrical. Most crises begin quietly, almost anonymously, disguised as temporary inconveniences that appear manageable until they suddenly aren’t.

Think back to the first weeks of 2020. News reports about an unfamiliar virus circulated for weeks before most people paid attention. Outside a handful of specialists, almost nobody seriously believed that international travel would stop, businesses would close overnight or supermarket shelves would be stripped bare by ordinary shoppers. Looking back now, it’s easy to say the warning signs were obvious. At the time, they blended into the constant flow of headlines competing for attention every single day. That pattern has repeated itself throughout history. Major disruptions rarely arrive without warning; they arrive surrounded by so much background noise that almost nobody recognizes them until hindsight turns scattered events into an obvious timeline.

The reason this matters is that the international situation entering the second half of the decade feels unusually crowded with risks that, taken individually, don’t necessarily point toward catastrophe. The war in Ukraine continues to reshape European security policy. Military spending has increased across much of NATO, while countries that had spent decades reducing their armed forces are now expanding recruitment and rebuilding stockpiles of ammunition. In Asia, naval activity around Taiwan has become more frequent, North Korea continues to invest in its missile program, and governments throughout the Pacific are preparing contingency plans that would have sounded alarmist only a few years ago. None of those developments automatically lead to global conflict, but together they create an environment where a single mistake could carry consequences well beyond the region where it begins.

Military planners have long argued that modern wars are less likely to start with a formal declaration than with a sequence of rapidly escalating incidents. A cyberattack disables part of a communications network. Intelligence services detect unusual military movements that may—or may not—be routine exercises. Satellite images are interpreted differently by opposing governments, each convinced the other is preparing to move first. Political leaders are then forced to make decisions in real time while operating with incomplete information, knowing that waiting too long carries risks, but acting too quickly may trigger the very crisis they hope to avoid. History contains numerous examples of conflicts that expanded not because every participant wanted war, but because every participant believed the other side had already decided that war was unavoidable.

2. The Black Sky Event

Few people spend much time thinking about the electrical grid. It is one of those systems that exists almost entirely in the background, quietly supporting modern life without demanding much attention from the people who depend upon it every single day. Flip a switch, and the lights come on. Open a banking application, and a payment is processed within seconds. Order groceries online, and thousands of decisions involving warehouses, logistics companies, transportation hubs and inventory management systems unfold without ever becoming visible to the customer. The greatest achievement of modern infrastructure may not be its scale, but its ability to disappear into everyday life. Only when one part of the system stops working does the extraordinary complexity behind ordinary routines become impossible to ignore.

That complexity has become increasingly difficult to overlook during the past several years. Governments have invested heavily in strengthening electrical networks, protecting telecommunications infrastructure and improving cybersecurity across both public and private sectors. The motivation is not difficult to understand. Modern economies rely upon systems that exchange enormous amounts of information every second, balancing electricity demand, coordinating transportation schedules and synchronizing financial transactions with remarkable precision. A disruption affecting one network rarely remains confined to a single location. Even relatively localized failures can create unexpected consequences elsewhere, not because the systems are fragile by design, but because they have become deeply interconnected through decades of technological progress.

The idea behind what preparedness communities have often described as a “Black Sky” event does not begin with a spectacular disaster. Instead, it unfolds gradually, almost quietly, in a manner that resembles the opening stages of previous crises. A regional outage lasts longer than utility companies initially expected. Mobile networks become unreliable across several metropolitan areas. Electronic payment terminals begin experiencing intermittent interruptions, forcing businesses to accept only cash while technicians investigate the source of the problem. Distribution centers report delays after software responsible for routing deliveries starts producing inconsistent data. None of these developments appears catastrophic on its own. Each can be explained individually. Together, however, they begin creating a pattern that attracts far more attention than any isolated incident would have received only days earlier.

Early Developments

  1. Electrical disruptions spread beyond the area where they first appeared.

  2. Communications become increasingly inconsistent rather than failing completely.

  3. Retail supply chains begin experiencing delivery delays.

  4. Financial institutions introduce temporary safeguards while investigating technical anomalies.

  5. Emergency services activate contingency procedures designed for prolonged infrastructure failures.

What makes the situation increasingly difficult to interpret is the speed at which uncertainty travels. Modern societies produce an extraordinary volume of information every hour, yet during periods of disruption the demand for answers almost always exceeds the supply of verified facts. News organizations rely upon official briefings that evolve as new information becomes available. Independent analysts compare satellite imagery, transportation data and publicly available infrastructure reports, frequently arriving at different conclusions. Social media platforms amplify eyewitness accounts from thousands of locations simultaneously, mixing accurate observations with misunderstandings, speculation and deliberate misinformation until distinguishing one from another becomes a challenge in itself.

History suggests that confidence can become as important as physical infrastructure during moments of uncertainty. Supermarkets rarely maintain weeks of inventory because modern logistics have made constant replenishment far more efficient than long-term storage. Fuel stations depend upon scheduled deliveries arriving with remarkable consistency. Pharmacies receive regular shipments that reflect predictable patterns of demand. Hospitals coordinate supplies through sophisticated procurement systems designed around uninterrupted transportation. Under ordinary circumstances, these arrangements represent one of the greatest strengths of the global economy. During periods of sustained disruption, however, even modest delays can begin affecting sectors that appear unrelated at first glance.

As reports continue emerging from different regions, attention gradually shifts away from the original outages toward the broader question of resilience. Engineers focus on restoring damaged infrastructure, while government agencies attempt to coordinate information across multiple jurisdictions. Businesses activate continuity plans that had existed largely on paper until circumstances required their implementation. Some organizations transition smoothly to backup systems, while others discover that contingency measures designed years earlier no longer reflect the complexity of present-day operations. Every hour brings incremental progress in some areas and unexpected setbacks in others, creating an environment where optimism and concern coexist in equal measure.

Rather than producing immediate panic, the first noticeable change appears in everyday routines. Families begin purchasing additional bottled water, batteries and shelf-stable food—not necessarily because they expect the worst, but because recent experience has demonstrated how quickly normal purchasing habits can change during periods of uncertainty. Hardware stores report increased demand for portable generators and emergency lighting. Local governments remind residents to review preparedness plans originally developed for severe weather events. These individual decisions seem reasonable when viewed independently, yet together they begin reshaping daily life in subtle but unmistakable ways.

By the time officials announce that restoration efforts may require considerably longer than originally anticipated, the conversation has already expanded beyond electricity itself. The real question is no longer whether power will eventually return, but how a society built upon continuous connectivity adapts when continuity can no longer be taken for granted. That question, more than any technical explanation or engineering report, becomes the defining theme of the weeks that follow.

3. The Hidden Variable

Every crisis begins with a tangible problem. A military confrontation unfolds along a border. A cyberattack disrupts essential services. A financial shock sends markets into turmoil. These events dominate headlines because they can be measured, mapped and documented. They leave behind damaged infrastructure, economic losses and political consequences that analysts can examine long after the immediate emergency has passed.

The more difficult question is what happens after those measurable events begin influencing something far less visible.

History suggests that societies rarely unravel because of a single catastrophe. More often, they are tested by uncertainty itself. Information becomes fragmented, official statements evolve as new facts emerge, and competing interpretations race across television broadcasts, podcasts and social media platforms faster than any government can realistically respond. Within hours, millions of people may be looking at the same event while reaching entirely different conclusions about what has actually happened.

The modern information environment has transformed that process in unprecedented ways. During previous generations, news traveled through a relatively small number of newspapers, radio stations and television networks. Today, virtually anyone can publish photographs, videos or eyewitness accounts that reach a global audience within minutes. This democratization of information has created extraordinary opportunities for transparency, but it has also made distinguishing reliable reporting from incomplete or manipulated content considerably more difficult.

In an environment already strained by military tensions, infrastructure disruptions and economic uncertainty, information itself begins behaving like another critical resource. Accurate reporting becomes increasingly valuable precisely because it is competing against an overwhelming volume of conflicting claims. Every delay in communication creates space for speculation. Every contradictory statement encourages further debate. Every unanswered question generates dozens of possible explanations before investigators have even completed their initial assessments.

This gradual erosion of certainty produces consequences that extend well beyond politics. Financial markets react not only to events themselves but also to expectations about what may happen next. Businesses postpone investments when reliable forecasts become difficult to produce. Consumers delay major purchases, employers slow hiring decisions and international companies reconsider expansion plans while waiting for greater clarity. None of these individual decisions appears dramatic in isolation. Collectively, however, they can reshape economic activity far more effectively than a single headline ever could.

The same pattern has appeared repeatedly throughout modern history. Economic crises have often been accelerated by collapsing confidence rather than disappearing resources. Banking systems depend upon trust that deposits will remain accessible. Supply chains depend upon confidence that contractual obligations will be fulfilled. Democracies depend upon public acceptance that institutions remain capable of resolving disputes peacefully, even during periods of extraordinary disagreement. Once confidence begins deteriorating, restoring it often proves considerably more difficult than repairing damaged infrastructure or rebuilding physical assets.

Signals That Often Accompany Periods of Heightened Uncertainty

  1. Rapidly changing official guidance as new information becomes available.
  2. Increased market volatility driven by expectations rather than confirmed developments.
  3. Growing dependence on unofficial sources for real-time updates.
  4. Sudden shifts in consumer behavior despite stable underlying supply.
  5. Expanding public debate over which institutions remain the most reliable.

One of the defining characteristics of the digital age is that every major event now unfolds simultaneously across multiple realities. The physical event occurs first. Within minutes it is interpreted by journalists, government agencies, financial analysts, independent researchers and millions of ordinary citizens, each bringing different assumptions and priorities. By the end of the day, the public conversation may no longer revolve around the original event itself, but around competing explanations of what it means and what should happen next.

This phenomenon has introduced a challenge that previous generations rarely faced on such a scale. The speed of communication has increased exponentially, while the speed of verification has not. Satellite imagery requires analysis. Intelligence assessments require corroboration. Infrastructure failures require technical investigation. Financial data requires careful interpretation. Reliable conclusions almost always arrive more slowly than speculation, creating an unavoidable gap between public demand for immediate answers and the time required to produce them responsibly.

For emergency planners, that gap represents one of the most significant challenges of modern crisis management. Restoring electricity, reopening transportation corridors or stabilizing financial systems remains essential, but maintaining public confidence increasingly depends upon something equally important: clear, consistent and credible communication. Without it, even temporary disruptions can appear far larger than they actually are, while isolated incidents may be interpreted as evidence of broader systemic failures.

Perhaps that is the lesson connecting all three scenarios explored throughout this article. Military escalation, infrastructure disruption and institutional uncertainty are often discussed as separate risks, each belonging to different areas of expertise. In reality, modern societies have become so interconnected that developments in one domain inevitably influence the others. A geopolitical confrontation affects energy markets. Energy disruptions influence industrial production. Economic uncertainty shapes political decision-making. Information networks amplify every stage of the process, compressing days of public reaction into hours.

Whether future crises resemble past events or take entirely new forms, one principle remains remarkably consistent. The resilience of a society depends not only upon the strength of its military, the sophistication of its technology or the size of its economy, but also upon its ability to adapt when certainty becomes scarce. Throughout history, civilizations have demonstrated an extraordinary capacity to recover from disasters that once appeared overwhelming. The greatest advantage has rarely been perfect preparation or flawless prediction. More often, it has been the willingness to remain adaptable, cooperate across institutions and communities, and make informed decisions despite incomplete information.

In an era defined by accelerating technological change and increasingly interconnected systems, that may prove to be the most valuable form of resilience of all.

The Common Thread

Looking back through history, it is remarkable how often major crises are remembered for the moment they reached public consciousness rather than the moment they actually began. The headlines that define an era usually arrive only after months, and sometimes years, of developments that seemed disconnected while they were unfolding. Economic downturns are rarely caused by a single trading day. Wars seldom begin with one isolated incident. Even technological revolutions tend to emerge gradually before suddenly appearing inevitable in retrospect. The same pattern can be found across countless historical events, where the decisive turning point often becomes obvious only after enough individual pieces have fallen into place.

That observation forms the common thread connecting every scenario explored throughout this article. Although military conflict, infrastructure disruption and institutional uncertainty appear to belong to different worlds, they are ultimately linked by the same underlying reality: modern civilization functions as an interconnected system. Decisions made in one capital influence financial markets on another continent. A disruption affecting a single shipping route alters manufacturing schedules thousands of kilometers away. Political uncertainty reshapes investment, while economic instability influences diplomacy, defense planning and public confidence. Each development interacts with countless others, creating consequences that are often impossible to predict from any single event alone.

Perhaps that is why periods of rapid change have always been so difficult to recognize while they are happening. Human beings naturally interpret new developments through the lens of previous experience. Temporary shortages are expected to remain temporary. Political disagreements are assumed to follow familiar patterns. Technical failures are treated as isolated problems waiting for engineers to solve them. Most of the time, those assumptions prove correct. Societies recover, institutions adapt and ordinary life gradually resumes. It is precisely because this pattern has repeated so often that genuinely transformative moments are frequently underestimated during their earliest stages.

Preparedness, therefore, has never been solely about stockpiling supplies or anticipating worst-case scenarios. At its core, preparedness has always reflected something far broader: the ability to adapt when familiar assumptions no longer apply. History consistently rewards flexibility over certainty. Communities that cooperate tend to recover more quickly than those divided by distrust. Organizations capable of adjusting to rapidly changing conditions often outperform those relying exclusively on rigid plans. Individuals who remain informed without becoming overwhelmed are generally better positioned than those driven entirely by optimism or fear.

One lesson emerges repeatedly from past crises. Information matters, but judgment matters even more. During periods of uncertainty, headlines compete for attention, opinions multiply and speculation often spreads faster than verified facts. The challenge is not simply finding more information, but learning how to evaluate it carefully, recognizing the difference between immediate reactions and longer-term trends. Decisions made under pressure rarely benefit from panic, yet they also suffer when obvious warning signs are ignored. Maintaining that balance has always been one of the defining characteristics of resilient societies.

The world entering the second half of this decade is neither uniquely dangerous nor uniquely secure. It is, however, more interconnected than at any previous point in history. Advances in technology, communication and global trade have delivered extraordinary prosperity and unprecedented convenience, while simultaneously creating new forms of dependency that earlier generations never experienced. That duality is likely to define many of the challenges ahead. Every innovation that strengthens society also introduces new questions about resilience, complexity and the unintended consequences of living in a world where events on one side of the planet can influence daily life on the other within hours.

For that reason, the value of examining scenarios such as those presented here lies less in predicting the future than in appreciating how quickly circumstances can change when multiple systems interact. History has repeatedly demonstrated that resilience is rarely built in the middle of a crisis. It is developed beforehand through planning, cooperation, investment in reliable institutions and an informed public capable of responding thoughtfully when conditions become uncertain.

No one can predict precisely what the next defining global crisis will look like. It may resemble challenges experienced before, or it may emerge from directions that currently receive little attention. What history suggests with remarkable consistency is that the first signs are seldom recognized for what they are. They appear as isolated headlines, temporary inconveniences or regional developments that seem unlikely to affect anyone beyond their immediate surroundings. Only later, when enough connections become visible, does the larger picture begin to emerge.

And perhaps that is the most enduring lesson of all. The greatest challenges are not always the ones that arrive with the loudest warning. More often, they begin quietly, almost unnoticed, hidden within the ordinary rhythm of everyday life until the moment that rhythm changes—and the world realizes it has already entered a new chapter.

Tyler Durden
Mon, 07/06/2026 – 05:00

World Cup Fans Drive Spending Surge In These US Host Cities

World Cup Fans Drive Spending Surge In These US Host Cities

Bank of America has released new aggregated credit and debit card data showing that the World Cup is already driving a noticeable increase in retail spending activity across the tournament’s 11 U.S. host cities.

According to BofA analyst Aditya Bhave, brick-and-mortar spending at restaurants and bars in host cities rose 5.3% year over year in the three weeks ending June 27, outpacing the 3.8% gain seen across the rest of the U.S.

Bhave noted that other forms of brick-and-mortar retail spending also accelerated in host cities, suggesting the tournament is providing a real-time boost for local restaurants, bars, and retailers.

Boston and Miami were exceptions, with restaurant and bar spending remaining flat and other retail spending slowing. Bhave said both cities hosted Scotland group-stage games and suggested that a heavy inflow of Scottish fans may have crowded out local spending.

Bhave noted that the data likely understates the full impact of the World Cup because it captures only spending by BofA customers.

Professional subscribers can read more notes on consumer here at our new Marketdesk.ai portal. 

Tyler Durden
Mon, 07/06/2026 – 04:15

LEGO Faces Backlash Over Pride-Themed Content Aimed At Kids

LEGO Faces Backlash Over Pride-Themed Content Aimed At Kids

Via American Greatness,

The Denmark-based toy company LEGO is facing criticism after promoting Pride-themed content on social media and its website. Parents accused the company of introducing LGBT themes to a brand primarily marketed to children.

Although LEGO produces some building sets for adults, the company markets most of its products to children. Many young consumers follow the brand on social media.

In a recent Instagram post, LEGO celebrated Pride Month with the caption, “Pride moments built, brick by brick. Swipe to see more of our LEGO colleagues’ stories.”

The accompanying slideshow featured LEGO minifigures recounting coming-out experiences, including one character attending a Pride parade and another depicting a male character proposing to his boyfriend.

Parents and social media users criticized the post, with several calling for a boycott of the company.

“LEGO is now openly pushing Pride parades, gay marriage, and rainbow ideology straight at children,” one commenter wrote on X.

“This isn’t ‘inclusion.’ It’s sexualizing childhood and grooming the next generation with adult themes.”

The commenter added, “Parents are waking up. Boycott time. Companies that target kids with this stuff deserve to lose customers… keep this garbage away from our children.”

In 2021, LEGO released a set titled “Everyone Is Awesome,” featuring 11 faceless minifigures displayed in the colors of the Progress Pride flag. The company labeled the set for ages 18 and older.

According to the information provided, the set’s designer, Matthew Ashton, said it was created with children in mind and reflected his own experience of coming out as a teenager.

“Children are our role models and they welcome everyone, no matter their background. Something we should all be aspiring to,” Ashton said.

“If I had been given this set by somebody at that point in my life, it would have been such a relief to know that somebody had my back. To know that I had somebody there to say ‘I love you, I believe in you. I’ll always be here for you.’ So, in a way, this set is not just for the LGBTQIA+ community. It’s for all of the allies — parents, siblings, friends, schoolmates, colleagues, etc. — out there as well.”

The company also promoted a Pride Month activity on its official website on June 1.

“It’s time to paint the town red, orange, yellow, green… basically a whole rainbow of color! That’s right, it’s Pride Month, and we’re celebrating the best way we know how: with LEGO® bricks!” the activity description states.

The page encouraged participants to create Pride-themed LEGO builds, stating, “This year, we want you to celebrate what makes you—and everyone you love—quite frankly, AWESOME.”

Tyler Durden
Mon, 07/06/2026 – 03:30