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Las Vegas Slowdown Deepens As Gamblers Reject Unaffordable Sin City  

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Las Vegas Slowdown Deepens As Gamblers Reject Unaffordable Sin City  

A Las Vegas downturn first emerged on our radar early this past summer and has only deepened into fall. We previously noted that the days of cheap room rates and discounted buffets to lure gamblers are long gone, replaced by steep markups on even the smallest of items. For many working-class Americans, Vegas has become unaffordable, and the latest data from Goldman analysts show the Strip slowdown persisted through September. 

Las Vegas trends remain lackluster,” Goldman analyst Lizzie Dove wrote in a note citing a series of data points, including visitation and gambling metrics, that marked the ninth consecutive quarter of year-over-year visitation declines and continued softness across the Strip in September.

Here are the key Vegas trends to focus on:

  • Visitation: Down -8.8% y/y in September, following -7% in August and -12% in July. Convention attendance was especially weak (-19% y/y) due to the calendar shift of Oracle CloudWorld to October. Overall visitation fell -10% y/y.

  • Hotel Metrics: Las Vegas Strip RevPAR fell -7.9% y/y, driven by ADR -1.5% and occupancy down 570 bps to 81.3%. Weakness was sharper mid-week.

  • Gaming Revenue (GGR): Strip GGR declined -5.5% y/y to $688mn, largely due to a very low baccarat hold (8.5%) versus the two-year average of 16.3%. Adjusting for hold, GGR would have actually grown +2.2% y/y.

Despite falling visitation, gambling trends increased 11% y/y, suggesting operators are attracting higher-spending, gaming-focused visitors over general leisure tourists

Las Vegas Gaming Stats

Las Vegas Tracker

Vegas trends have been lagging in 2025, with the most pressure to RevPAR

Vegas casino stocks have been sideways since the pandemic. 

Related:

Perhaps the Wall Street Journal report this week about the GOP’s midterm political convention potentially being held in Sin City next year could bring some tailwinds. However, casino operators still need to address the growing affordability issue in the city.

Zerohedge Pro subs can find the Vegas trends note in the usual place – there are more charts

Tyler Durden
Thu, 10/30/2025 – 18:05

These 2 Supreme Court Cases May Affect Future Elections

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These 2 Supreme Court Cases May Affect Future Elections

Authored by Stacy Robinson via The Epoch Times,

The country is gearing up for the 2026 midterms, and the stakes are especially high for both allies and opponents of President Donald Trump’s administration.

In October, the Supreme Court heard two cases that may impact upcoming elections: one dealing with race-based congressional maps, and the other addressing whether federal candidates can challenge state laws that allow ballot counting after election day.

Race-Based Redistricting

Following a lawsuit by minority voters, a federal court in Louisiana ordered the state to redraw its congressional map to add a second majority-black district, since that demographic made up one-third of the state’s population. After it did so, a group of non-minority voters sued, arguing that the new maps discriminated against them racially.

Earlier this year, the Supreme Court heard arguments for both cases in a combined case called Louisiana v. Callais.

They asked whether Section 2 of the Voting Rights Act was being unconstitutionally interpreted to force states to draw congressional maps with extra mostly-minority districts.

That section of the law prohibits voter restriction based on “race or color.”

However, the court did not issue a ruling at that time. Instead, it rescheduled the case for October, asking both sides to be ready to argue whether using race as a factor to decide district lines violated the 14th and 15th Amendments.

Those Amendments guarantee equal protection under the law, and the right to vote despite considerations of “race, color, or previous condition of servitude.”

At the time, Justice Clarence Thomas wrote that the court should decide those cases immediately, and not wait until October.

“Congress requires this Court to exercise jurisdiction over constitutional challenges to congressional redistricting, and we accordingly have an obligation to resolve such challenges promptly,” he wrote.

Thomas wrote that previous Supreme Court decisions had created “tension” between the Voting Rights Act and the 14th and 15th Amendments: Lower courts had interpreted those decisions to mean that if a state could create an extra mostly-African-American district, then it must do so, he wrote.

During the October hearing, the court seemed likely to narrow the Voting Rights Act.

Counting Late Ballots

Rep. Mike Bost (R-Ill.) and two presidential electors filed suit in 2022, challenging Illinois regulations that allow counting of mail-in ballots up to two weeks after an election. In addition to violating federal election law, they said, those rules require Bost to pay campaign staff for an extra two weeks of work as they monitor the late ballot-counting.

The lower courts ruled that Bost did not have standing, i.e., the right to sue, because the decision to pay staff to monitor the ballots was a “self-inflicted” injury. The Fifth Circuit Appeals Court also said Bost could not show the law injured him because the 2024 election was still two months away at the time of their ruling.

So, in the case Bost v. Illinois Board of Elections, the question before the Supreme Court is not yet about counting late ballots, but whether a federal candidate has the right to challenge the practice.

Paul Clement, arguing for Bost, told the court that counting the late ballots was illegal, could cost Bost the election or reduce his margin of victory, and meant he had to shell out extra money to pay his staff.

“All of that means that Congressman Bost has standing three times over,” he said.

Justice Ketanji Brown Jackson said those harms seemed “speculative.”

Jane Notz, attorney for Illinois, said that allowing anyone who called themselves a ‘candidate’ to challenge election rules in court would result in “chaos.”

“It is very easy to be a candidate,” she said.

“Any self-declared candidate could challenge any election rule that they happen to have a policy disagreement with, even if that rule were entirely harmless.”

Louisiana Congressional District Map; Districts 2 and 6 are mostly-black districts. Illustration by The Epoch Times, Public Domain, Madalina Vasiliu/The Epoch Times

She also argued that Bost has no standing because he is unlikely to lose the race: He won the last two elections by 49 points and 50 points, respectively.

But when the justices asked how close the race would need to be for a candidate to have standing, Notz was unable give an answer.

Some of the justices were concerned that denying a candidate standing until after the election was underway would produce its own basket of problems.

“What you’re sketching out for us is a potential disaster,” Chief Justice John Roberts said.

“If the candidate hopes to win by a dozen votes—and there are places in the country where that happens over and over again—then he has standing. But we’re not going to know that until we get very close to the election, right? And so it’s going to be in the middle, the most fraught time for the Court to get involved in electoral politics.”

Justice Neil Gorsuch also asked if there was something “unseemly” about courts interfering with an election by making public statements about which candidate was most likely to win, and by how much.

The Outcome

The court has not yet issued a ruling in either of these cases, and timing is key.

Because of a rule called the Purcell doctrine, courts avoid issuing relevant decisions just before elections, in order to avoid voter confusion.

But if the Supreme Court issues a ruling on the Louisiana case before states begin their primary elections, some may choose to remake districts that were drawn with race-based considerations. Historically, mostly-minority districts tend to vote Democrat, so redrawing those maps would likely favor the GOP.

Arkansas’s primary election is in March.

Alabama, Georgia, and Mississippi are among the likely candidates. All three states were previously forced by courts to redraw their congressional district lines.

Republicans currently have a narrow majority in both chambers of Congress and control of the White House.

Democrats seek to break that grip by eliminating the GOP majority in the House; Trump has forestalled that plan by urging red states to redraw their congressional district lines, creating new majority-Republican districts.

Trump’s plan may receive a boost, depending on how the Supreme Court rules.

The Bost case may take longer to have an effect. Since the case before the court addresses standing, the actual issue of late ballot-counting would likely be kicked back to lower courts, which would take time to issue decisions.

If Bost prevails, it would allow candidates the opportunity to challenge election laws ahead of time, with unpredictable consequences.

Tyler Durden
Thu, 10/30/2025 – 17:45

AAPL Dumps Then Pumps Despite Dismal China Sales

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AAPL Dumps Then Pumps Despite Dismal China Sales

After impressive results from AMZN, all eyes were on Apple to see what the iphone maker would report after the close, and if it would help rinse the bad taste from today’s poor market action, or of it would piggyback on the solid results from Amazon. And for a second it was a big touch and go, with the stock first sliding after hours, however after human traders had some time to reverse the kneejerk algo reaction lower, AAPL stock is now also higher after hours. 

Here is what Apple reported: of note, the company EPS and revenue both beat, despite notable misses for iPhone revenues as well as a drop (and miss) in China revenues 

  • EPS $1.85 vs. 97c y/y, beating estimate $1.77
  • Revenue $102.47 billion, +7.9% y/y, beating estimates of $102.19 billion
    • Products revenue $73.72 billion, +5.4% y/y, beating estimate $73.49 billion
      • IPhone revenue $49.03 billion, +6.1% y/y, missing estimate of $49.33 billion
      • Mac revenue $8.73 billion, +13% y/y, beating estimate $8.55 billion
      • IPad revenue $6.95 billion vs. $6.95 billion y/y, missing estimate $6.97 billion
      • Wearables, home and accessories $9.01 billion, -0.3% y/y, beating estimate $8.64 billion
    • Services revenue $28.75 billion, +15% y/y, beating estimate $28.18 billion

The big highlight of the quarter is that this was the first ever quarter when Apple’s revenue surpassed $100 billion, with results generally strong.  The one – very big – fly in the ointment was the usual suspect: China, where revenues unexpectedly dropped to $14.49 billion , down 3.6% YoY, and badly missing estimates of $16.43BN by a whopping 12%.

But it wasn’t just China; Americas revenue grew 6.1% YoY, but not enough to beat estimates of $44.45 billion. Other regions performed better:

  • Europe revenue $28.70 billion, +15% y/y, estimate $26.36 billion
  • Japan revenue $6.64 billion, +12% y/y, estimate $6.41 billion
  • Rest of Asia Pacific revenue $8.44 billion, +14% y/y, estimate $8.08 billion

Going down the line: 

  • Gross margin $48.34 billion, +10% y/y, beating estimates $47.41 billion
    • Total operating expenses $15.91 billion, +11% y/y, higher than estimate $15.75 billion
    • Cost of sales $54.13 billion, +6% y/y, below estimate $54.47 billion
    • Research and development operating expenses $8.87 billion, +14% y/y, higher then estimate $8.8 billion
    • SG&A operating expense $7.05 billion, +8% y/y, higher than estimate $6.96 billion
  • Cash and cash equivalents $35.93 billion, +20% y/y, estimate $51.67 billion

And so on:

Looking at a breakdown of sales by product category, here the numbers were mixed, with iPhone and iPad missing, while Mac, Wearables and Service revenues beat. The iPhone number especially was a little light, especially for those who put faith in the soft/third party data from the likes of Counterpoint Research.

  • IPhone revenue $49.03 billion, +6.1% y/y, missing estimate of $49.33 billion
  • IPad revenue $6.95 billion vs. $6.95 billion y/y, missing estimate $6.97 billion
  • Mac revenue $8.73 billion, +13% y/y, beating estimate $8.55 billion
  • Wearables, home and accessories $9.01 billion, -0.3% y/y, beating estimate $8.64 billion

Here is the full revenue breakdown by product:

Soft iPhone sales aside, it was the surprising drop – and miss – in China sales that prompted the early selling in the stocks: contrary to expectations for a modest rebound, China sales declined down 3.6%, the 7th drop in the past 9 quarters, down a 11.1%, and printing at only $14.493BN, below the $16.43BN estimate. The rest of the world saw growth, with Americas rising 6.1, and double digits growth in both Europe and APAC

Offsetting the China weakness, however, was another solid quarter out of the Services division, which again came in stronger than expected, rising to a new record $28.750 billion, 15% YoY and above the $28.18 billion expected. 

Commenting on the quarter, Apple CFO Kevan Parekh said that “our September quarter results capped off a record fiscal year, with revenue reaching $416 billion, as well as double-digit EPS growth.” He added that “thanks to our very high levels of customer satisfaction and loyalty, our installed base of active devices also reached a new all-time high across all product categories and geographic segments.”

And here is Tim Cook: “Today, Apple is very proud to report a September quarter revenue record of $102.5 billion, including a September quarter revenue record for iPhone and an all-time revenue record for Services. In September, we were thrilled to launch our best iPhone lineup ever, including iPhone 17, iPhone 17 Pro and Pro Max, and iPhone Air. In addition, we launched the fantastic AirPods Pro 3 and the all-new Apple Watch lineup. When combined with the recently announced MacBook Pro and iPad Pro with the powerhouse M5 chip, we are excited to be sharing our most extraordinary lineup of products as we head into the holiday season.”

Elsewhere, Apple’s board announced a small dividend update which rose to $0.26 per share of the Company’s common stock. The dividend is payable on November 13, 2025, to shareholders of record as of the close of business on November 10, 2025.

More notably, the company said that it saw $1.1 billion in tariff related costs in Q4, which may explain why the market reversed the after hours selloff, giving AAPL credit for the rather mediocre earnings, which it would blame on Trump. 

Seeking to reverse the early selloff, Apple leaked a little guidance, saying it sees a rev. increase of 10% to 12% in the holiday quarter, Cook saying he expects Q1 2026 revenue to be the best ever for the company and iPhone. And if that’s not the case, the company can just blame tariffs.

To be sure, according to Bloomberg Intelligence, the comments from Apple’s CFO about a 10-12% increase in iPhone sales in fiscal 1Q26 vs. consensus of 6% growth, as reported by the Wall Street Journal, overshadows dismal 4Q Greater China sales:

“Remarks about a supply shortage could soothe concerns around market-share loss to local brands in the region. Services-segment growth of 15%, or 230 bps above consensus, was a positive, suggesting App Store fee changes might not be affecting consumer behavior as much as feared.”

And just to make sure the early selloff does not drag the stock lower, Tim Cook was quick to throw out all the key buzzwords, saying Apple is “expanding its investments in AI”, reiterating comments he’s made the last several quarters. Cook also said Apple was making more progress on the new Siri and reiterates it’s coming next year. 

For now, the plan is working and AAPL stock managed to sharply reverse its early drop, surging about 3% after hours.

Tyler Durden
Thu, 10/30/2025 – 17:31

Los Angeles Dethrones Chicago As ‘Rattiest US City

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Los Angeles Dethrones Chicago As ‘Rattiest US City

Authored by Mary Prenon via The Epoch Times,

After holding the ominous title of “rattiest” U.S. city for more than 10 years, Chicago has been replaced by Los Angeles as the new top haven for the pesky, sharp-toothed rodents.

Orkin’s Oct. 28 annual “Top 50 Rattiest Cities List” has bestowed this new designation upon the City of Angels, ranking cities by the highest reported rat activity.

The Atlanta-based national and international pest control firm noted that Los Angeles is a robust breeding ground for rats, with its year-round warm weather, dense neighborhoods, restaurants, and other eateries.

“From bustling commercial corridors to hidden alleyways, Los Angeles’ signature blend of glam and grit creates a perfect storm for rodent activity,” the report stated.

Rodents are highly adaptive and are attracted to the same basic needs as humans: shelter, food and water. They tend to thrive in moderate weather, so their populations can grow substantially during the warmer months. As temperatures drop, rats typically seek out warmer shelter and food sources, often causing havoc for both home and business owners.

“Rats and mice are more than a nuisance—they’re opportunists,” Ian Williams, an Orkin entomologist, said in the report.

“If there’s food, warmth and a way in, they’ll find it. And once inside, their constant chewing and rapid reproduction can quickly turn a small issue into a large, expensive one.”

According to the report, rodents can gnaw through walls, wiring, and even pipes and steel garbage cans. In addition to potentially causing thousands of dollars in damage, the vermin often carry diseases including salmonellosis, plague, typhus, and other serious health risks.

An August report from the California Almond Board attributed a severe roof rat infestation across the southern and western San Joaquin Valley to damage on more than 100,000 acres, causing significant economic losses. The infestation affected nut crops and damaged trees, irrigation systems, and other infrastructure. Losses among almond growers ranged from $109 million to $311 million.

Orkin’s list named New York City as the third “rattiest” metro for this year, followed by San Francisco and Hartford, Connecticut. Rounding out the Top 10 were: Washington, D.C., Detroit, Philadelphia, Minneapolis, and Denver.

Two additional California locations—San Diego and Sacramento—made the list. Tampa, Miami, and Orlando, Florida, were also included among the Top 50, as were Dallas and Houston.

Other notable locations named were: Boston, Seattle, Phoenix, New Orleans, and Reno, Nevada.

To prevent rodent infestations, Orkin recommends following the GNAW acronym: guard entry points by sealing cracks or holes; never leave food unattended outside; avoid clutter for possible nesting spots; and watch for signs like gnaw marks, burrows, or droppings.

“Watch for small openings: Rats only need an opening the size of a quarter to access a building, and mice need even less space,” the report indicates. It also cautions about any water leaks or standing water that could be attractive to rodents.

Improperly sealed trash containers can also be a delicious lure for rats, so checking for small holes or damage is always recommended.

Tyler Durden
Fri, 10/31/2025 – 15:25

Fresh Israeli Strikes Again Test Trump-Brokered Gaza Deal

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Fresh Israeli Strikes Again Test Trump-Brokered Gaza Deal

The Israel-Hamas ceasefire continues hanging by a thread, now about two-and-a-half weeks in, but there are new reports of airstrikes in Gaza by Israeli warplanes.

Israeli warplanes and tanks struck targets in eastern Gaza on Thursday, according to Palestinian residents and witnesses, cited in Reuters and other outlets. Over 100 Palestinians have died after on Tuesday Israel resumed airstrikes, citing the death of an IDF reserve soldier after Hamas gunmen opened fire in Rafah.

Illustrative via AP

Wednesday saw Israel’s military proclaim that it was returning to observing the ceasefire, following pressure from the White House. But Thursday’s new airstrikes suggest fighting and bombardments have continued, and events on the ground have not aligned with the public-facing rhetoric.

Witnesses reported around ten airstrikes east of Khan Younis in southern Gaza, alongside tank shelling near Gaza City in the north, Reuters has noted in its latest reporting.

But Israel is still claiming the ceasefire is on, calling the new operation “precise strikes” against “terrorist infrastructure posing a threat to troops” in areas still under Israeli control.

So it seems that the Israeli rationale is based on these new strikes only taking place where Israel’s military is fully deployed, and not in places like Gaza City where the IDF withdrew as part of the Phase 1 agreement called for in Trump’s peace plan.

Hamas has this week communicated its readiness and willingness to abide by the terms of the ceasefire, and says it is preparing to hand over more hostage bodies to Israel – amid a broader search for more remains.

Hamas officials have criticized “a systematic campaign of misinformation” by the Israeli side said to be aimed at concealing “crimes against civilians.”

Meanwhile there are separate reports that fighting in the West Bank has been heating up, which could also serve to threaten the truce deal in Gaza:

Vice President J.D. Vance had said of the flare-up in fighting and resulting airstrikes Tuesday afternoon, “Despite the clashes today, the ceasefire agreement in Gaza will continue.” The Trump White House has been seeking to stabilize the ceasefire, with American delegations going back-and-forth frequently of late to Israel.

Tyler Durden
Thu, 10/30/2025 – 15:45

Trump Jr.: 1789 Capital’s “Patriotic Capitalism” Will Unleash America First Prosperity

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Trump Jr.: 1789 Capital’s “Patriotic Capitalism” Will Unleash America First Prosperity

After years of relentless lawfare and debankings, it would have seemed unthinkable for Donald Trump Jr. to emerge as a venture capitalist backing some of the world’s most innovative startups. And yet, here we are.

At the onset of his father’s second term, Trump Jr. joined 1789 Capital as a partner. The firm, co-founded in 2022 by investment banker Omeed Malik, Republican megadonor Rebekah Mercer and American Greatness publisher Chris Buskirk, has staked out territory as an explicit alternative to the environmental, social and governance investing that dominated Wall Street in recent years. Its pitch: back American companies driving what it calls “IEG” – innovation, entrepreneurship and growth – while sidestepping the diversity mandates and climate commitments that became corporate orthodoxy.

At the Future Investment Initiative in Riyadh on Wednesday, Malik and Trump Jr. detailed a portfolio heavy on artificial intelligence and defense technology, sectors experiencing a funding surge amid heightened geopolitical tensions and Pentagon modernization efforts, CAPITAL reports. The timing has proved fortuitous, as defense-tech startups raised a record $33 billion in 2024, according to PitchBook.

Among 1789 Capital’s holdings are Anduril Industries, the autonomous weapons maker valued at $30.5 billion that has positioned itself as a nimble alternative to traditional defense contractors; Hadrian, which manufactures precision parts for military applications; and a suite of Elon Musk’s companies, including SpaceX, xAI and Neuralink.

Additionally, 1789 Capital recently joined a funding round for Vulcan Elements, a rare-earths magnet producer that has secured Pentagon contracts. The investment reflects a broader push—echoed in administration policy—to rebuild domestic supply chains for critical minerals that China has long dominated, controlling roughly 70% of global rare-earth production. The firm also invested in Base, an Austin-based energy startup co-founded by Michael Dell’s son, Zach Dell, that focuses on residential battery storage and grid management solutions to Texas residents.

“We want to complement all the great work that the Trump administration is doing within the private sector,” Malik said, while Trump Jr. cast the effort in more political terms.

“What we want is a generational shift towards these America first policies both, in government and in the private sector, to unleash the freedom and prosperity that all Americans deserve,” the president’s son said.

The firm’s growth has accelerated since President Donald Trump returned to office in January. Securities and Exchange Commission filings from recent months showed assets under management approaching $900 million. PitchBook estimates place the figure closer to $1.25 billion, while the New York Times reports that assets now total roughly $2 billion—more than doubling in less than a year.

During the panel discussion, Malik and Trump Jr. appeared to confirm a Bloomberg report that 1789 Capital was seeking to raise a fund for investing in South Florida real estate.

It’s actually part of a broader vision,” Malik began when asked about the plans. “1789 will be a multi-strategy asset manager and we have the growth equity fund, we have a small situations fund and the next thing we were going to do is real estate.”

“One is certainly a macro or political assessment of the situation that I referenced earlier, which is there will continue to be mass migration from the northeast to the sun belt, including Florida,” Malik said. “We want to be able to have a real estate development fund that’s going to take advantage of that migration as well as the fact that a lot of the sun belt has not been zoned or built properly. That’s a huge opportunity in that area. Chicago, LA, and New York which are on the decline.”

The other is if you think about all the things we’re investing in, all the innovation, all the AI, all the tech, you can’t do that without infrastructure,” the 1789 Capital co-founder added. “The other aspect that’s very synergistic with our portfolio is making sure that you can do those data centers, the hyperscalers, and that’s a thing that we’re going to invest in in our own portfolio.”

Tyler Durden
Thu, 10/30/2025 – 15:05

We Are Drifting To A 2-G World, One US-centric, Another Chinese

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We Are Drifting To A 2-G World, One US-centric, Another Chinese

By Michael Every of Rabobank

Think a 2-G, not a G-2 world

The Fed briefly made the market headline this morning after doing what was expected – cutting 25bps to 4%; and what markets had wanted – stopping QT; but also what markets hadn’t expected and didn’t want – calling into question how much further rates will fall. As such, markets, who netted a peak-to-trough $6.5 trillion in Fed balance sheet expansion in the ‘it’s just an asset swap that will be reversedQE > QT > (QE?) cycle, were not happy, though we see 25bps cuts in December (if not a done deal), and March, June, and September 2026: see here for more. While looking at that $6.5trn, consider the unironic Washington Post op-ed that ‘This Supreme Court decision [on the Fed’s Cook] could basically guarantee higher inflation’.

As some focus on how politics and central banks can fuse one way, Europe displayed another. ECB President Lagarde repeated a call for the EU to move to majority voting, following former ECB President then unelected Italian PM Draghi, and Bank of Italy Governor Panetta. Without taking a stance, is this in the ECB’s remit other than it indirectly involves the economy? What would markets think if Powell got involved over House redistricting? Regardless, it underlines the pressure for structural, market-moving change in Europe.

In the geopolitical world the EU is struggling to keep up with, Russia tested a nuclear torpedo that can flood cities with “radioactive tsunamis”; the US will undertake nuclear tests in response to those of others; Western intel said Iran is rearming despite UN sanctions, with China’s help; Venezuela’s “creaking military” is preparing for US strikes; Brazil saw dozens die in Rio in police-drug gang clashes, which included the Ukraine-war tactic of drone-dropped bombs; and the US plans a “show of force” against “Chinese aggression” in the South China Sea.

In related geoeconomics, Nvidia hit a $5trn market cap – as its CEO just said it doesn’t matter if the US or China wins the global AI race(!); the BOJ ignored US Treasury Secretary’s Bessent advice and left rates on hold again at 0.5% with no more dissenters than the previous two; Saudi Arabia will refocus its $925bn sovereign wealth fund from real estate towards critical minerals, logistics, and AI, which sounds US-linked; Trump said South Korea will build a nuclear submarine in the US, transferring its highest defense tech, as he struck a deal to lower auto tariffs to 15% from 25% in return for $150bn for US shipbuilding, $20bn annual FDI for a decade, and major energy purchases; and Oslo reported Chinese made EV buses can be disabled remotely via software updates, allowing direct access to their battery.

Yet the Atlantic notes as of now, ‘The US Is on Track to Lose a War With China’ as “modern warfare is decided by production capacity and technological mastery, not by individual valor”; new US rare earths processing tech may help it leapfrog China, as the quest for rare earth elements is sparking a Texas mining revival; Australia’s Lynas will build a heavy rare earth plant in Malaysia; but Malaysia, which just signed such a rare earths deal with the US, will only export processed products; as three Indian companies received the first set of licenses for importing rare earth magnets from China – which cannot be used for defence purposes.

The latter underlines Europe may not be able to rearm either, whatever funds it allocates to it, unless it develops alternative supply, with a parallel issue threatening the chips need for auto production. For chips, that will take time to ramp up; for rare earths, far more so given Europe lacks key resources, which the FT just noticed in ‘Europe and the curse of geography.

Meanwhile, Beijing is lobbying Europe not to side with the US as France’s parliament voted to raise their tech tax, potentially setting up a clash with Trump, and Macron called for social media that won’t declare its bias to be banned, perhaps setting up a clash with VP Vance.

Summarising the zeitgeist, the Economist pens ‘A letter to investors from the White House Opportunities Fund’, on “How the shift to state capitalism is panning out for America LLC.” It’s rather early to be making that call – but the description of the new (geo)political economy is not, as we called as imminent immediately that Trump was re-elected. Indeed, underlining how wrongly that is still being read by some, @Eurobriefing notes: “Remember the investment flows from the US to Europe – after Trump’s tariffs and the election of Merz? It’s all reversing now. US investors are slowing waking up to a political reality of political perma-gridlock in Europe. And Europeans investors are starting to realise the macroeconomic gains from AI are far more likely to arise in the US and China than in Europe.”

Of course, all the preceding news was just a warm-up for today’s critical Trump – Xi meeting, before which Trump posted, “THE G2 WILL BE CONVENING SHORTLY!”, worrying the other 193. The early words in front of the media in Busan were win-win: Xi stated China’s development does not contradict the vison of “Make America Great Again.” However, as China expert Matt Pottinger asks, ‘Is Trump Getting Played by Xi?’, and “If so, America’s agrarian past may be its future” –something I pointed out was the trend in relative import-export rations by sector in 2017’s The Great Game of Global Trade– tariffs, fentanyl, AI chips – where the Chair of the House Select Committee on China states selling Nvidia Blackwell chips to China would be “akin to giving Iran weapons grade uranium”, rare earths, soybeans, Taiwan, and even Russia-Ukraine were all rumored to be in the mix – if you aren’t at the table, you are likely on it.

Trump said it was “amazing” and “outstanding” meeting, and agreed a rolling one-year deal that can be extended where: “tremendous” US soybean purchases will “start immediately”; China “agreed to work to stop fentanyl,” so a 10% US tariff reduction has gone into effect, but “many other tariffs remain”; USTR Greer said China will not be imposing rare earth controls – but does that only apply to the US?; Blackwell AI chips were not discussed, though China is going to talk about others with Nvidia; US nuclear tests are aimed at others; Taiwan was not discussed; and Trump will visit China in April. We are still waiting for official readouts, but this seems a short-term ceasefire, not any long-term settlement – and no TACOs were on the menu.

So, ‘stability’ until April on one front – unless China doesn’t keep its end of the bargain, in which case tariffs go up (110%?). Meanwhile, the US will target onshoring and rare earths while China targets high-end chips. That, and other developments, still say that rather than a US-China G-2 CoDominium, we are drifting to a 2-G world, one US-centric, another Chinese.

In what would otherwise be major news today, Trump conceded that it’s “pretty clear” that he can’t tun for a third term, which would be actual news to Steve Bannon.

UK Chancellor Reeves is reportedly considering a 2% increase in income tax in the upcoming budget, as she joins the list of government ministers having to alert the official ethics adviser after an “inadvertent mistake” with a London property licence and the rental of her family home; and

The liberal D66 party looks to have won the same number of seats as the right wing PVV in the Dutch election with 97.7% of the vote counted, and D66 leader Jettens looks in pole position to be the next Prime Minister; he will inherit the Nexperia, rare earths, Russia-Ukraine, and EU-US issues as he looks to build closer cooperation with Europe – just as the EU may be set for major changes(?)

To conclude, the Fed cut as expected but could now see a pause; the Trump-Xi meeting also saw a tactical pause. Both were welcome, but neither mean much in the bigger picture

Tyler Durden
Thu, 10/30/2025 – 14:45

Oil, Gas, & “The End Of Climate Catastrophism”

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Oil, Gas, & “The End Of Climate Catastrophism”

Oil stocks remain some of the cheapest relative to the broader market so we figured its time to discuss why.

In last night’s ZH Debate, we pulled together top energy analysts representing three different views, hosted by friend of zerohedge and former energy trader Erik Townsend, a true expert in the field and the host of the Macro Voices podcast.

In the bullish corner, Arjun Murti, a partner at Veriten has over 30 years on the Street analyzing energy for firms like Goldman Sachs. For the bearish case, Bloomberg’s Mike McGlone is a commodity specialist with equal time doing high-level institutional research. Lastly, taking a middle-road outlook, Paul Sankey of Sankey Research remains bearish through winter, turning bullish by February. Sankey is former MD at Deutsche Bank.

Here are the key moments for those short on time but we highly recommend anyone with money in the market listen to the full debate:

Bearish Target: $40 per barrel

Blooberg’s McGlone opened with the bearish case: “WTI crude oil is down about 16% this year… every trend is lower prices.” He called it “an extreme bear market,” adding that stabilization “requires the stock market [to] stabilize and at least go up.”

Equities are, of course, making new all-time highs by the week, which McGlone worries makes them vulnerable to corrections. “If we get a normal 10 to 20% correction,” he warned, “that’ll easily get to my $40 a barrel.”

Oil is not alone compared to corn, soybeans, and wheat. But according to McGlone,“crude oil is more elastic than it was any time in the past,” referring to 

Long-term Bull Case: Climate insanity is done

Murti dismissed the idea of a “delayed transition” away from fossil fuels as “absolute nonsense,” arguing that while new technologies could one day threaten oil demand, “we do not know what they are today.” 

He emphasized the global inequality of energy development—“one eighth of the world being rich and the other seven eighths” still striving to catch up—and said that the recent Bill Gates flip flop marked “the end of climate catastrophism as a mainstream thing.”

The “Horrendous Energy Intensive” AI Boom

Sankey warned that artificial intelligence could become an “energy black hole,” as it becomes ever more ubiquitous. “The more efficient AI becomes, the more you’re going to use AI and by extension, the more energy you’re going to have to use,” Sankey said.

This trend could continue “until the energy cost gets too high, potentially the environmental costs get too high, and you have to cease and desist.”

while that may cause an energy crisis, it seems hard to deny it’s bullish for oil. 

Watch the full debate below on your preferred platform:


 

Tyler Durden
Thu, 10/30/2025 – 14:05

Putin’s Offer To Extend The New START Is A Goodwill Gesture To Trump

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Putin’s Offer To Extend The New START Is A Goodwill Gesture To Trump

Authored by Andrew Korybko via Substack,

Putin offered in late September to extend the New START, which is the last arms control pact between Russia and the US, for another year following its expiry in early February.

He then reaffirmed his proposal in early October, emphasizing that there’s still time to extend this crucial agreement if the US has the political will, which appears to be the case given Trump’s recent praise of it as “a good idea”. Regardless of whatever happens, Putin’s offer is a goodwill gesture to Trump, which will now be explained.

For background, Putin announced Russia’s suspension of the New START in February 2023 in response to NATO’s involvement in Ukraine’s drone attacks against his country’s strategic aviation bases several months prior, which was analyzed here as the right thing to do at the right time. Nearly a year later in January 2024, Foreign Minister Sergey Lavrov then declared that talks on this issue won’t resume till the Ukrainian Conflict ends, arguing that doing otherwise would put Russia at a disadvantage.

With that in mind, it was expected at the start of the year that “Mutual Interest In Resuming Arms Control Talks Can Speed Up The Ukrainian Peace Process”, yet that didn’t come to pass with Russian-US tensions escalating shortly after mid-August’s Anchorage Summit. Nevertheless, Putin still publicly praised Trump for working towards peace and proposed extending New START for another year, thus representing a change in Russia’s position as articulated by Lavrov over 18 months earlier.

Goodwill gestures are meant to make the recipient trust whoever does them with the expectation that they’ll then be reciprocated for improving their relations. That doesn’t always happen though as proven by Russia’s goodwill gesture of withdrawing from Kiev during spring 2022’s peace talks being seen as weakness by Ukraine, the UK, and Poland, the last two of which then convinced Ukraine to keep fighting. The possibility thus exists that Trump might perceive Putin’s latest goodwill gesture in the same way.

It’s crucial to mention that Putin reassured his people that Russia can ensure its national security even in the absence of extending New START and that any unilateral moves by the US to further upset the strategic balance between their countries would render this pact null and void. What he probably had in mind was Trump’s “Golden Dome” initiative, previously known as the “Iron Dome”, for reviving Reagan’s “Star Wars” plan for space-based interceptors and likely secret space-based offensive missiles too.

Taking his trade deals as precedent, he always wants the US to maintain the dominant position in any “compromise”, so he might either insist on continuing to build the “Golden Dome” despite this ruining any New START extension or secretly continuing to do so even if he says he won’t. If the CIA assesses that Russia might transfer cutting-edge nuclear weapons technology to China and/or North Korea in that case, and that this would in turn jeopardize US national security interests, then he might reconsider.

Putin’s goodwill gesture to Trump of offering to extend New START is therefore a pivotal moment in their ties since it’ll allow Russia to learn whether the US is serious about compromising. If Trump doesn’t ditch the “Golden Dome” or dupes Putin about freezing work on it, then even though the new Burevestnik missile could still piece through it, Russia might still opt to transfer this tech to its nuclear-armed allies in order to raise the costs to the US of rejecting Russia’s proposal so that it doesn’t reject future ones too.

Tyler Durden
Thu, 10/30/2025 – 13:05

EBay Shares Plunge Most Since 2005 As Soft Outlook Overshadows Solid Earnings

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EBay Shares Plunge Most Since 2005 As Soft Outlook Overshadows Solid Earnings

EBay shares plunged as much as 16% on Thursday, the biggest intraday drop since January 2005, after the company issued disappointing fourth-quarter guidance. The outlook for adjusted earnings and operating margins came in below Bloomberg Consensus estimates, overshadowing what had been solid third-quarter earnings. 

EBay delivered a strong third quarter, beating estimates across the board. However, Bloomberg Intelligence analysts said investors were focused on the disappointing fourth-quarter adjusted earnings-per-share forecast, which could “reflect consumer and tariff uncertainty.” 

Snapshot of Third-Quarter Results (via Bloomberg): 

Adjusted EPS: $1.36, up from $1.19 a year ago and above the $1.34 estimate.

Net Revenue: $2.82 billion, a 9.5% year-over-year increase, topping the $2.73 billion consensus.

Active Buyers: 134 million, up 0.8% year-over-year, slightly below expectations of 135.1 million.

Gross Merchandise Volume (GMV): $20.11 billion, up 9.8% year-over-year, beating the $19.37 billion estimate.

  • U.S. GMV: $9.87 billion, up 13% year-over-year, versus $9.36 billion expected.

  • International GMV: $10.23 billion, up 7% year-over-year, compared with $10.06 billion estimated.

Free Cash Flow: $803 million, up 24% year-over-year, exceeding the $688.3 million estimate.

The spotlight was on eBay’s fourth-quarter forecast, which guided adjusted EPS between $1.31 and $1.36, missing the Bloomberg Consensus of $1.39 and signaling margin pressure ahead. The online auction platform projected net revenue between $2.83 billion and $2.89 billion, roughly in line with the $2.8 billion estimate, pointing to modest top-line growth but a softer profit outlook ahead of Black Friday and Christmas holiday shopping season. 

Full-Year Forecast:

  • Sees adjusted EPS from continuing operations $5.42 to $5.47, estimate $5.46

  • Sees net revenue $10.97 billion to $11.03 billion, estimate $10.85 billion

Given solid 3Q trends, we think eBay’s 4Q guidance appears to be set too low to reflect consumer and tariff uncertainty,” Bloomberg Intelligence analysts wrote in a note, adding that the outlook for fourth quarter adjusted operating margin “missed consensus as its strategic investments may weigh on results.”

Stifel analyst said earnings were solid but this report was “overshadowed by 4Q guidance of GMV growth decelerating to +4-6% y/y (FXN), citing tough comps and the full impact of the de minimis changes.” 

The dismal outlook sent shares crashing – the most in an intraday session since January 20, 2005 – down 14% by early afternoon in New York. 

$100 handle has been rejected for the second time. 

Double top?

 

 

 

 

 

 

Tyler Durden
Thu, 10/30/2025 – 12:45