Iran Reportedly Agrees To Give Up Nuclear Material In Breakthrough: 'Peace Deal Within Reach'

Update(1737ET): Absolutely huge late Friday developing news, if it's confirmed and assuming it sticks, via CBS: "Iran has agreed to give up its stockpile of enriched material - zero accumulation - and allow for full verification by the IAEA of its nuclear program according to US-Iran talks mediator, Oman's foreign minister Badr al Busaidi."

The Iranian side also seems to be confirming its willingness to make this significant concession, also to stave off a massive US attack, given the immense build-up of Pentagon assets in the region. According to more breaking details via CBS:

Negotiators from the U.S. and Iran have made "substantial progress" toward a deal to curb Iran's nuclear program, Omani Foreign Minister Badr Albusaidi told CBS News on Friday, as President Trump considers strikes on Iran.

Albusaidi — who has mediated several rounds of U.S.-Iran talks over the last month — told "Face the Nation" moderator Margaret Brennan that a "peace deal is within our reach." 

He said Iran has agreed that it will "never, ever have … nuclear material that will create a bomb," which he called a "big achievement." The country's existing stockpiles of enriched uranium would be "blended to the lowest level possible" and "converted into fuel, and that fuel will be irreversible," according to Albusaidi.

President Trump had just before the headline hit struck a cautious and ambiguous tone, describing that Iran "does not want to go quite far enough" and for now it's "too bad" as the White House is not yet "happy with Iran negotiations".

It's still very premature at this point to point to any kind of 'done deal' - but this at least signals US strikes are unlikely to come this weekend, also as Rubio is still expected in Israel early next week.

But the pressure campaign is continuing, and with this new, strange designation - which no one will really notice:

Today I designated Iran as a State Sponsor of Wrongful Detention. For decades the Iranian regime has cruelly detained innocent Americans and citizens of other nations to use as political leverage. Iran must end this abhorrent practice and immediately free all unjustly detained…

— Secretary Marco Rubio (@SecRubio) February 27, 2026

* * *

After the third round of indirect US-Iran talks held in Geneva on Thursday, Omani Foreign Minister Badr Al-Busaidi - who was the chief mediator - cited "significant progress" - which echoed the generally positive assessment of the Iranian side.

Iran's Foreign Minister Abbas Araghchi initially declared, "We reached agreement on some issues, and there are differences regarding some other issues. It was decided that the next round of negotiations will take place soon, in less than a week."

He acknowledged that it was the most "intense" round yet, but still a "mutual understanding" was reached to "continue to engage in a more detailed manner on matters that are essential to any deal – including sanctions termination and nuclear-related steps." But there has been no deal, and Washington's attack plans are still in preparation phase.

via AFP

It must be recalled that President Trump said a week ago Tehran had two weeks to agree to Washington's terms, and so the clock is ticking as the huge American military build-up in the region continues.

The latest statement by FM Araghchi issued Friday lays out that the Trump administration must drop its "excessive demands" for a nuclear agreement to take place.

"Success in this path requires seriousness and realism from the other side and avoidance of any miscalculation and excessive demands," Araghchi reportedly said in a call with Egyptian Foreign Minister Badr Abdelatty.

There are reports that Washington may have actually dropped the ballistic missile reduction demand (or is at least not pressing it), but is still demanding zero enrichment, and that all remaining enriched uranium in Iran's stockpile be transferred to US custody. In the process, the US wants to see Iran further dismantle the damaged nuclear sites of Fordow, Natanz and Isfahan.

The Wall Street Journal reported soon after Thursday's talks wrapped up that no deal was reached, and that Tehran negotiators balked at the nuclear demands.

"Iran rejected the idea of transferring uranium stockpiles abroad. It also has objected to ending enrichment, dismantling its nuclear facilities and permanent restrictions on its program, Iranian state media and people familiar with the talks said," WSJ wrote.

Are the negotiations just a smokescreen to put all military assets in place before the big (unprovoked) attack?

Exclusive- we spoke to Armed Services Chairman @SenatorWicker on Iran yesterday, who told us it’s a waste of time to expect the Iranian government to negotiate w/U.S. in good faith.

He suggested there’s a push to move to military strikes pic.twitter.com/UhB0rptcgW

— Joe Khalil (@JoeKhalilTV) February 27, 2026

With the next round (the fourth) of talks set to be held in Vienna this coming Wednesday, there remains the possibility that Trump could order some kind of strikes between now and then. Such an operation could be 'limited' - but there's no guarantee that Iran's response will also be limited in terms of the inevitable retaliation.

Tyler Durden Fri, 02/27/2026 - 17:39

SpaceX Readies IPO Paperwork For March, Targeting $1.75 Trillion Valuation

SpaceX is preparing to confidentially file for an initial public offering as early as next month, people familiar with the matter said, advancing plans for what could become the largest listing ever, according to Bloomberg.

The Starbase, Texas-based rocket and satellite company is expected to submit draft IPO paperwork to the US Securities and Exchange Commission in March, potentially positioning it for a June debut. That timing would make it the first in a possible wave of mega-offerings, with OpenAI and Anthropic PBC possibly following.

Deliberations are ongoing and plans could shift, the people cautioned, noting the filing could still be postponed.

Bloomberg writes that some of the people said SpaceX may pursue a valuation above $1.75 trillion, speaking anonymously because discussions are private. The company recently acquired xAI, Elon Musk’s AI venture, in a February deal valuing the combined business at $1.25 trillion, Bloomberg News reported. A confidential filing would allow SpaceX to receive regulatory feedback and revise disclosures before they are made public. A representative for the company did not immediately comment.

The IPO could raise as much as $50 billion, which would exceed Saudi Aramco’s record $29 billion offering in 2019. At a $1.75 trillion valuation, SpaceX would rank behind only five members of the S&P 500 Index — Nvidia Corp., Apple Inc., Alphabet Inc., Microsoft Corp. and Amazon.com Inc. — and would surpass Meta Platforms Inc. as well as Musk’s Tesla Inc. by market value.

In a memo, SpaceX said it is preparing for a possible 2026 IPO to finance an “insane flight rate” for its developing Starship rocket, space-based artificial intelligence data centers and a lunar base. The company has tapped Bank of America Corp., Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley for senior underwriting roles and is weighing a dual-class share structure that could grant insiders, including Musk, enhanced voting control, Bloomberg News has reported.

The most prolific rocket launcher globally, SpaceX leads the industry with its Falcon 9 vehicle, transporting satellites and astronauts into orbit. It is also building toward a lunar foothold before ultimately pursuing Musk’s long-stated goal of sending humans to Mars.

Through Starlink — a vast network of low-Earth orbit satellites — the company has become the dominant provider of space-based internet, serving millions worldwide.

Tyler Durden Fri, 02/27/2026 - 17:20

'Sense-Making Seems Impossible...'

Authored by James Howard Kunstler,

The Man Who Might Wreck the Country

“That a government’s primary responsibility is to its citizens should not be a controversial proposition.”

- Coddled Affluent Professional on X

The zeitgeist is a rough beast, hard to ride as it slouches into the unknown.

Our country is trying to hang on while a party of goblins vexes and needles the beast from behind, and you cannot make them stop.

Sense-making gets to seem impossible.

We don’t have an explanation from Senate Majority Leader John Thune as to why he will not do what is within his power to do: pass election reform, known as the SAVE Act, by changing the filibuster procedure. At midweek Sen. Thune said Republicans were “not unified on pursuing a talking filibuster.” Understand that bringing back a real filibuster, with continuous speech in the well of the Senate, only requires the Majority Leader’s say-so, meaning Mr. Thune is prevaricating, concealing the truth.

Senator Mitch McConnell shadows Majority Leader John Thune

Which might be that he does not want to pass election reform. It appears he wants to set up the midterm elections with the now-familiar kit of unverifiable mail-in ballots, millions of non-citizen motor-votes, and dragged-out vote-counting so that Democrats will seize control of the House (if not the Senate) in order to crank-up the impeachment machine again and finally get rid of President Trump. It does not look like anything else, certainly not any kind of cunning game.

What might change that would be an FBI analysis of the 2020 election year ballots, voter rolls, and vote tabulation tapes recently extracted from the Fulton County, Georgia, Elections Hub, leading to indictments. They’ve had this mass of material for a month. There was already plenty of preliminary evidence of fraud from earlier investigations — which is how come U.S. Magistrate Judge Catherine Salinas of the U.S. District Court for the Northern District of Georgia found probable cause to approve a search warrant for the FBI.

They must have an idea by now of what the evidence shows. It’s not that complicated.

There’s no fixed statutory timeline for a referral. The FBI can pass along the matter to the DOJ for prosecution whenever they determine the evidence is sufficient. Referrals are customarily secret, as they occur during ongoing investigations and involve sensitive, non-public information. DOJ policies emphasize confidentiality in pre-charging stages to protect investigations, potential witnesses, sources, and the integrity of any future prosecution. In general, the public learns of an FBI referral only indirectly — through later developments like indictments, or news media reporting via “sources.”

Criminal referrals on the Fulton County case might have already been made, and indictments might be forthcoming. That would have to prompt some kind of attitude adjustment for Senate Majority Leader Thune on behalf of election reform. It could happen at any time. It would at least put Senator Thune between a rock and a hard place. It’s well-understood that at least 80-percent of people polled want the SAVE Act passed.

There is no debating position that reasonably argues against it. You might have noticed that Mayor Mamdani of New York City called for volunteers to shovel snow in the latest blizzard, and that anyone who stepped-up was required to show two types of photo ID to work the job. Yet, Mamdani, a member of the Democratic Socialists of America (DSA), aligns with the party’s longstanding opposition to voter ID laws, including the SAVE Act. No need to go figure on that. It’s just arrant dishonesty.

The president emphasized clearly why the Democrats are against election reform in this week’s State of the Union speech: because the party can only win elections by cheating, by employing massive systematic fraud. He said it so that everybody tuned-in could hear it, and the Democrats just sat stone-faced on their side of the chamber — and that was only minutes after they refused to stand for the proposition that the government’s main job was to act in the interest of American citizens.

It’s unlikely that the president can alter election procedure himself, through executive order or by declaring some kind of national emergency. Any attempt would be instantly litigated and shut down by the judiciary. The Constitution assigns primary authority over the “times, places and manner” of elections to the states (with only Congress able to alter them by law).

Either Senator Thune will do his duty or not. He must have some self-awareness that he risks going down as the greatest villain in our history, the man who wrecked the country. Does anything like personal honor still exist in this land?

Views expressed in this article are opinions of the author and do not necessarily reflect the views of ZeroHedge.

Tyler Durden Fri, 02/27/2026 - 17:00

Watch: DSNY Heads Supplicate To Allah With Mayor Mamdani In Coercive Islamic Ritual

Authored by Steve Watson via Modernity.news,

New York City’s sanitation leadership has been caught on camera participating in an Islamic supplication ritual led by Mayor Zohran Mamdani, a move critics slam as a blatant push toward Islamification.

The scene, captured during a gathering with officers, shows DSNY brass raising hands in dua—a form of prayer to Allah—before wiping them over their faces as instructed in Islamic hadith, all prior to sharing a meal.

While some mistakenly reported those involved as being NYPD, their core point is still salient. Why are the leaders of the DSNY engaging in such behaviour?

New York City’s sanitation leadership has been caught on camera participating in an Islamic supplication ritual led by Mayor Zohran Mamdani, a move critics slam as a blatant push toward Islamification.

ISLAMIFICATION: NYPD leaders supplicate to Allah in what is called a duʿāʾ prior to a communal meals with Mayor Zohran Mamdani and rank and file officers. The coercive effect of such rituals cannot be overstated. The message is being sent to the NYPD that if you want to advance… pic.twitter.com/lMaJL66Hdh

— @amuse (@amuse) February 26, 2026

Another highlighted the broader implications:

Another highlighted the broader implications: 

New York is being introduced to Sharia Law

New York City Mayor Zohran Mamdani holds Muslim prayer with NYPD before allowing them to eat with him

This is how it starts. America will fall to Islam just like the UK if we allow these people to run for officepic.twitter.com/bPpAqMIWmk

— Wall Street Apes (@WallStreetApes) February 26, 2026

The videos, which have racked up views on X, depict the DSNY officials in uniform engaging in the ritual alongside Mamdani, who has long been a controversial figure for his far-left stances and ties to anti-Israel activism.

The development echoes the growing concerns over cultural shifts in New York City, where unchecked immigration and progressive policies have amplified Islamic practices in public spaces. 

Just days ago, we covered the massive Ramadan prayer gathering in Times Square that drew comparisons to an “invasion” and sparked backlash from figures like Professor Gad Saad, who quipped sarcastically about the event in the shadow of 9/11.

The Times Square spectacle included chants of “Allahu Akbar” amid the iconic neon lights.

Now, with DSNY leaders openly partaking in such rituals, those worries appear more justified than ever.

Critics argue this isn’t mere inclusivity but a power play, pressuring public servants to conform or risk career stagnation. 

In a city already grappling with rising crime and migrant-related chaos, diverting police focus toward religious rituals under a radical mayor raises red flags about priorities.

Mamdani, elected amid New York’s shift toward socialist-leaning Democrats, has pushed policies that prioritize globalist agendas over traditional American values. His leadership now seemingly extends to spiritual mandates, blurring the lines between governance and religious coercion.

This ritual joins a pattern of events eroding the city’s secular fabric, from prayer mats in public squares to potential pet bans rooted in foreign doctrines. As one observer put it in our earlier coverage, these gatherings represent a “cancer” weaponizing free speech while labeling opposition as racist.

With over 285,000 Muslims in NYC, such events may become normalized, but pushback is mounting. From Rep. Fine’s legislative efforts to online outcry, Americans are signaling they won’t surrender their freedoms without a fight.

If this trend continues unchecked, the Big Apple could mirror Europe’s capitulation to radical elements, where Sharia patrols and no-go zones have taken root.

Your support is crucial in helping us defeat mass censorship. Please consider donating via Locals or check out our unique merch. Follow us on X @ModernityNews.

Tyler Durden Fri, 02/27/2026 - 16:20

Top Nike Distributor Sounds Profit Alarm As BNP Says China Remains "Red Flag"

Nike has reported declining quarterly sales in China, where demand remains under pressure from mounting macroeconomic headwinds, and the brand continues to lose market share to newer competitors. This weakness has dented the shoemaker's broader turnaround efforts and suggests a much-needed reset in the Chinese market.

The stock is down 65% from its 2021 peak and is now trading at 2017 levels, as investors hope management will accelerate a turnaround plan to reverse this devastating multi-year bear market. However, a profit warning from a major distribution channel and commentary from BNP Paribas analyst Laurent Vasilescu only suggest more trouble ahead.

On Friday, Pou Sheng, a major distribution and retail channel for Nike in Greater China, warned that its 2025 attributable profit will likely plunge 57% year over year to RMB 211 million, while revenue is expected to decline 7.2% to RMB 17.1 billion.

Management blamed "operational deleverage, due to intense discount pressures and a decline in sales, which significantly constrained the Group's profitability."

"The mainland China market encountered subdued consumer confidence and elevated industry inventory levels, leading to aggressive promotional activities and impacting the Group's top-line performance," the supplier wrote in a profit warning update on Friday.

The supplier continued, "Its retail stores experienced a further slowdown in sales momentum, driven by sustained weakness in foot traffic and a mid-teens percentage decline in same-store sales. Lower-tier cities also saw sluggish foot traffic, substantially undermining the performance of its sub-distributor channels."

BNP Paribas analyst Vasilescu said Pou Sheng and Top Sports are the two main operators of Nike's roughly 5,000 mono-branded stores in China and noted that Top Sports also faces mounting structural pressure.

He noted this reinforces his long-term bearish view on Nike, saying his top concerns, overreliance on classic franchises, a flawed DTC strategy, and China weakness, are all continuing to unfold.

The BNP Paribas analyst downgraded Nike three years ago on the premise that China is a "red flag" for two major reasons: overdependence on classic franchises and a DTC strategy that is not working.

Vasilescu now sees a chance that Nike could announce a major China restructuring when it reports fiscal 3Q results on April 2.

He rates Nike as underperform with a $35 price target. Bloomberg data show Nike still has mostly bullish Wall Street coverage overall, with 28 buys, 14 holds, and 2 sells, and an average price target of $76.

Vasilescu expects Adidas earnings next week to show "strong" China trends, implying "Nike weakness."

Tyler Durden Fri, 02/27/2026 - 15:45

Trump: "Maybe We'll Have A Friendly Takeover Of Cuba"

President Trump told reporters on Friday afternoon that the U.S. could pursue a "friendly takeover" of Cuba, a comment from the president that comes as his administration moves to secure the Western Hemisphere and intensifies pressure on the communist regime in Havana through a crude-oil blockade.

"The Cuban government is talking with us. They're in a big deal of trouble, as you know. They have no money, no anything right now, but they're talking with us, Trump told reporters on the White House lawn. "Maybe we'll have a friendly takeover of Cuba.

Trump repeated, "We could very well end up having a friendly takeover of Cuba."

He continued, "After many, many years, we have had a lot of years of dealing with Cuba. I've been hearing about Cuba since I was a little boy. But they're in big trouble. And something very well - and something positive could happen."

NEW: President Trump hints at a "friendly takeover" of Cuba:

"The Cuban government is talking with us. They’re in a big deal of trouble, as you know. They have no money, no anything right now."

"Maybe we’ll have a friendly takeover of Cuba. We could very well end up having a… pic.twitter.com/sWtLkVBgVm

— Fox News (@FoxNews) February 27, 2026

Earlier this week, the United Nations' top official for Cuba warned that daily life on the island was rapidly deteriorating, with massive strains on healthcare, water services, and food distribution.

There are reports that the Cuban government has between six and seven weeks of fuel left before a major power blackout, and what could only be described as a total economic collapse unfolds.

One of the most interesting stories this week was about a Florida-registered speedboat carrying 10 Cuban nationals residing in the U.S., which entered Cuban territorial waters armed with assault rifles, body armor, improvised explosive devices, camouflage uniforms, and telescopic sights, in what the government says was a "foiled armed infiltration" into the Caribbean island nation.

Cuba reported that its border guards killed four and wounded six on the speedboat and said the group was planning to "carry out an infiltration for terrorist purposes."

U.S. Secretary of State Marco Rubio commented on the incident, saying, "What I'm telling you is we're going to find out exactly what happened and who was involved. We're not going to just take what somebody else tells us. I'm very confident we will be able to know the story independently."

Last week, in the Western Hemisphere, Mexican Army Special Forces' decapitation strike against the Jalisco New Generation Cartel (CJNG) killed Nemesio "El Mencho" Oseguera Cervant. This operation was aided by U.S. intelligence and shows ongoing dismantling of the Mexican cartel command and control networks appears to be gaining momentum.

By late week, the State Department issued a release stating that the U.S. government would offer $10 million for the capture of two alleged Sinaloa Cartel bosses in Tijuana: brothers Rene "La Rana" Arzate Garcia and Alfonso "Aquiles" Arzate Garcia.

Let's not forget that last month's high-stakes U.S. Delta Force raid to capture far-left Venezuelan leader Nicolás Maduro was part of the Trump administration's broader effort to reshape the Western Hemisphere, moving it away from left-wing communist regimes and aligning it more closely with U.S. interests.

After years of socialism in South America, there’s now a right-wing wave.@joseantoniokast just won the Chilean election, turning Chile blue.

Next year, the right could win the elections in Colombia & Brazil, while socialism might fall in Venezuela due to other circumstances pic.twitter.com/0CRX1CTK6P

— Visegrád 24 (@visegrad24) December 15, 2025

Related:

• Trump's Cuba Pressure Campaign Could Spark Cohiba Cigar Price Spikes

Latest on Polymaket...

Polymarket odds of a US invasion of Cuba this year spiked to nearly 20% after Trump's comments.  

Tyler Durden Fri, 02/27/2026 - 15:25

DOE Closes Massive $26 Billion Loan For Southern Co.

Here comes more of those “Hundreds of Billions”

So much capital coming to this space next 3 years https://t.co/ZwTB0C2CUU

— zerohedge (@zerohedge) November 18, 2025

The DOE announced Wednesday that its Office of Energy Dominance Financing (EDF) has closed a $26.54 billion loan package (the largest in the agency’s history) to two Southern Company subsidiaries.

Georgia Power will receive $22.4 billion and Alabama Power $4.1 billion. The roughly 30-year loans, drawable through September 2033, will finance more than 16.7 GW of reliable generation and transmission upgrades across the Southeast. This new loan dwarfs the previous billion dollar loan recently secured by Constellation for Three Mile Island. 

The portfolio includes approximately 5.3 GW of new natural-gas capacity, 6.3 GW of nuclear improvements through uprates and license renewals at existing plants (including Vogtle), 1 GW of hydropower modernization, battery energy storage systems, and more than 1,300 miles of new transmission lines and grid enhancements.

DOE and Southern project the financing will deliver more than $7 billion in electricity cost savings to customers in Georgia and Alabama over the life of the loans. Once fully drawn, the lower, taxpayer-backed interest rate is expected to cut Southern’s annual interest expense by more than $300 million, costs that would otherwise be recovered from ratepayers. 

Said another way, the burden for upgrading the grossly under-maintained grid will be passed from the local ratepayer to the federal taxpayer. Yay?

*TRUMP: TELLING BIG TECH THEY NEED TO PROVIDE THEIR OWN POWER

*TRUMP: NEGOTIATED NEW RATE PAYER PLEDGE ON DATA CENTER ENERGY

— zerohedge (@zerohedge) February 25, 2026

“These investments will support the extraordinary and transformative projected growth we're seeing across our company” Southern Chairman and CEO Chris Womack said. “These loans will help lower the cost of investments in our grid that will enhance reliability and resilience for the benefit of our customers”

Energy Secretary Chris Wright framed the deal as a direct fulfillment of the Trump administration’s energy policy. “Thanks to President Trump and the Working Families Tax Cut, the Energy Department is lowering energy costs and ensuring the American people have access to affordable, reliable, and secure energy for decades to come”.

The timing aligns with explosive load growth in the region. Georgia Power alone has secured roughly 7 GW of large-load commitments, largely from data centers and manufacturing, and is pursuing far more. Latitude notes the loans were restructured after the election to emphasize additional gas-fired resources alongside nuclear and transmission. It’s exactly the infrastructure needed to meet hyperscaler demand that utilities say private markets could not finance at comparable rates.

For taxpayers, the structure is debt, not a grant. In theory, the Treasury could break even or better versus Southern borrowing at higher private-market rates. DOE officials, including EDF Director Gregory Beard, stress that individual projects will undergo viability reviews to protect ratepayers and the public balance sheet.

Tyler Durden Fri, 02/27/2026 - 15:00

AI Takeover Complete: Data Center Construction Surpasses Office Construction For The First Time

On August 19, 2025 we published what we thought was "the most insane chart", one showing that value of data center construction was about to surpass the value of office construction. We added that we would reach the intersection point within 6 months. 

The most insane chart: value of data centers being built will surpass all offices in construction within 6 months pic.twitter.com/kQBGegx9Fj

— zerohedge (@zerohedge) August 19, 2025

We were right: earlier today the US published the much-delayed Construction Spending report for the month of December. It confirmed, that just as expected, the value of Data Centers constructed in the US has officially surpassed the value of Offices, a historical and very symbolic crossover which makes it clear that going forward machines, and not human workers will provide the bulk of US productivity. 

Source: Census Bureau

And while the long-term trend here is assured - at least until there is a new luddite revolution and (soon to be unemployed) humanity revolts against its new chatbot masters, burning down every data center in sight - there may be some near-term volatility. That's because according to more real-time measures, real estate brokerage CBRE reported that construction of new data centers in the US fell for the first time since 2020 despite soaring demand for artificial intelligence computing capacity, as developers face delays in permitting, zoning and power procurement.

Capacity under construction fell to 5.99 gigawatts at the end of 2025 from 6.35 gigawatts at the end of 2024. Still, in light of the layoff tsunami, it is certain that construction of offices has slowed down even more thus keeping data centers in the pole position. 

The construction delays and faster long-distance networks are driving development to move outside traditional data center sites like Northern Virginia, Gordon Dolven, CBRE’s data center research director, said in the report. The good news is that overall vacancy rate in primary markets fell to a record low 1.4% at year-end.

“Combined with growing interest in markets that offer available land and power, this is spurring investment beyond traditional hubs and reshaping the North American data center market,” Dolven said.

Meanwhile, as we warned last year, local pushback against massive AI data center projects has intensified in recent months, with the tide turning from welcoming the economic benefits of major construction projects to scrutinizing their resource-intensiveness and the associated soaring electricity prices. 

Last week, Illinois Governor JB Pritzker sought to temporarily halt incentives for data centers in a bid to contain soaring power costs Bloomberg reported. An Oracle Corp. site in New Mexico that scored a package of tax incentives and support from government-backed bonds has prompted protests largely focused on its potential environmental impact. And tensions have flared in Northern Virginia, where some residents are now looking to flee what’s become one of the largest data center hubs in the world.

Still, these are just growing pains and once behind the meter power sources are mandated, and small modular reactors become an everyday phenomenon, data center construction will resume its surge. That's because AI demand is forecast to require $3 trillion in data center investment, including related power supplies, according to estimates from Morgan Stanley. New tenants absorbed a record 2.5 million gigawatts in 2025, up 38% from a year earlier, CBRE said.

Construction underway fell 29% in Northern Virginia, followed by a 15% drop in Hillsboro, Oregon, and a 14% decline in Silicon Valley, CBRE reported. Projects soared 169% in Chicago and 15% in Dallas-Fort Worth.

Atlanta had more than 2 gigawatts of projects under construction, ahead of 1.9 gigawatts in Northern Virginia, in the second half of 2025.

Tyler Durden Fri, 02/27/2026 - 13:45

Biden Admin 'Invited' Fani Willis To Get Lucrative Grant While She Prosecuted Trump

Authored by Luis Cornelio via Headline USA,

The DOJ under the Biden administration “invited” disgraced Fulton County District Attorney Fani Willis to apply for a generous taxpayer-funded grant as she prosecuted President Donald Trump. 

The arrangement came to light after Willis referenced the grant in December 2022 correspondence with DOJ Senior Advisor Scott Pestridge of the Office of Justice Programs.  

The document was first revealed on Thursday by Just the News through open records requests filed by the outlet and nonprofit America First Legal. 

According to Just the News, Willis referenced the Office of Justice Programs’ Community-Based Violence Intervention and Prevention Initiative grant, which ultimately awarded her office $2 million. 

The timing of the award coincided with her office’s aggressive prosecution of Trump, who at the time was running for president against then-President Joe Biden. 

“I want to document your recognition of our progress and services provided with dynamic partners, as we complete sole source steps for our new grant award, a grant in which you invited us to apply,” Willis wrote to Pestridge, according to Just the News. 

Willis described the award as a “sole source” grant, indicating her office faced no competing applicants. 

The $2 million award was part of roughly $18 million the Biden DOJ provided to Willis’s office between 2021 and 2024.  

She claimed the funds would help “at-risk” youth avoid falling into crime or assist with reintegration into society, according to Just the News. 

Documents released by Willis’s office in response to open records requests show her office maintained consistent coordination with the DOJ after Trump left office in 2021, when she became one of several left-leaning prosecutors pursuing cases against him.  

She later charged Trump under Georgia’s RICO statute, accusing him of attempting to subvert the 2020 election results in the state. 

Her case ultimately unraveled after it was revealed that she had engaged in an affair with Nathan Wade, the special prosecutor she selected to lead the prosecution.  

Willis took vacations with Wade while her office paid him, later claiming she reimbursed him in cash, though she never produced receipts to substantiate those payments. 

Both Wade and Willis were ultimately disqualified from leading the case. After Trump returned to office in 2025, the prosecution was effectively nullified. 

Tyler Durden Fri, 02/27/2026 - 13:05

Kristi Noem Says DHS Staffers Put Spyware On Her Phone And Laptop To Record Meetings

Authored by Debra Heine via American Greatness,

Department of Homeland Security (DHS) Secretary Kristi Noem revealed on Thursday that certain DHS staffers had allegedly installed spyware on her phone and computer, as well as on devices belonging to other political appointees.

“You wouldn’t even believe what I’ve found since I’ve been in this department,” Noem told conservative podcaster Patrick Bet-David .

Noem said she discovered the spyware last year with the assistance of former DOGE chief Elon Musk and his team.

“They helped me identify that some of my own employees in my department had downloaded software on my phone and my laptop to spy on me to record our meetings,” Noem said.

Bet-David was flabbergasted by the bombshell revelation.

Stop it!” he exclaimed. Wow!”

“They had done that to several of the politicals,” Noem added.

The DHS Sec. said that if it wasn’t for Musk’s technology experts, there would probably still by spyware on DHS laptops and phones.

Noem also disclosed that a SCIF (Sensitive Compartmented Information Facility) was just recently discovered containing files “no one knew existed.”

“An employee walked by a door and wondered what it was and started asking questions,” she explained, adding that when Trump officials went inside to check it out, they found “individuals working there that had secret files that nobody knew about” on controversial topics.

Noem told Bet-David that the secret files were turned over to attorneys for review.

The secretary went on to say she has seen “eye-opening” data from Customs and Border Protection (CPB) and the National Laboratories regarding the scientists who traveled to the infamous Wuhan Institute of Virology in China to conduct gain of function experiments on coronaviruses.

“It was eye-opening,” she said.

The FBI and Department of Energy (DOE) have determined with moderate/low confidence that COVID-19 leaked from the Wuhan lab.

Noem told Bet-David that she never doubted that the “deep state” (entrenched liberal resistance within the bureaucracy) existed, but never would have guessed that it was a bad as it is.

“I’m still every day trying to dig out people who don’t love America, not just in this department, but throughout the federal government,” she said.

Tyler Durden Fri, 02/27/2026 - 12:25

The post The Ellisons Taking Over Warner is Pants on Fire Stuff, but Team Progressive Just Whines appeared first on CEPR.

Brutal: Democrats Walked Straight Into This

Authored by Steve Watson via Modernity.news,

A new advertisement from conservative group American Sovereignty hammers Democrats for staying seated during President Trump’s State of the Union call to prioritize American citizens over illegal aliens, using footage that lays bare their priorities.

The ad, which dropped Thursday, features Trump stating, “If you agree with this statement, then stand up and show your support: The first duty of the American government is to protect American citizens, not illegal aliens.” 

Republicans rose in applause while Democrats remained glued to their seats, with overlays labeling the divide and accusing Dems of siding with “illegal immigrant criminals.” 

The spot cuts to Trump’s “These people are crazy” remark before closing with “Republicans are for you.”

As we highlighted in previous coverage, Democrats’ behavior during the SOTU revealed whose side they’re on—and it’s not the American people. 

Many boycotted the event or sat through applause for victims of illegal alien crime, exposing their allegiance to open borders over citizen safety.

They doubled down afterward, with figures like Debbie Wasserman Schultz labeling the speech “absolutely revolting” for prioritizing Americans.

Even more telling, Rep. Rashida Tlaib appeared to chant “KKK” while Republicans chanted “USA!”—a moment ripe for its own ad.

The ad’s release comes as Republicans eye midterms, with a GOP spokesperson telling the Washington Examiner that vulnerable House Democrats should “get comfortable re-watching the moment they revealed they’re nothing more than America-hating scums who stayed glued to their seats.”

The Democrats handed Republicans a raft of campaign material just in time for the midterms. They don’t even try to hide their hate for Americans

If they can’t stand for ‘protect Americans first,’ what exactly are they standing for?

This ad marks the first in a seven-figure blitz targeting battleground states like North Carolina, Michigan, and Georgia, per Politico, aiming to leverage the SOTU optics for electoral gains.

Trump himself called out Democrats during the speech, saying “you should be ashamed of yourself” for not standing, a moment echoed in White House criticisms and conservative commentary.

As midterms loom, this footage serves as a stark reminder: Democrats’ refusal to stand for American priorities hands Republicans ammunition to rally voters against policies that put citizens last.

Your support is crucial in helping us defeat mass censorship. Please consider donating via Locals or check out our unique merch. Follow us on X @ModernityNews.

Tyler Durden Fri, 02/27/2026 - 11:45

Pakistan Declares 'All-Out War' Against Afghanistan, Hundreds Dead In Overnight Clashes With Taliban

Overnight, Pakistan launched airstrikes across Afghanistan, including targets in the capital of Kabul, soon after which Pakistan's Defense Minister Khawaja Asif by Friday morning declared an "all-out war" between the two countries.

Hours prior to the commencement of airstrikes and heavier clashes, Afghan Taliban forces reportedly attacked Pakistani border troops Thursday night in retaliation for Pakistani airstrikes earlier in the week.

A Pakistani military spokesman has said that 274 Taliban fighters have been killed and more than 400 injured by Pakistani strikes, adding that 74 Taliban posts were destroyed and 18 captured - and counting.

Taliban near the Torkham border, via AFP.

The Taliban for its part has said that 55 Pakistani soldiers were killed and 19 posts seized. Kabul have acknowledged Taliban fighters killed, 11 wounded, and 13 civilians injured in the mountainous northwest border region where the line of fighting is concentrated.

Since the Taliban returned to power in 2021, relations between Afghanistan and Pakistan, which share the disputed 1,600-mile Durand Line, have shifted from cautious engagement to open hostility. The history has been marked by shifting from one-time allies to on-and-off again enemies. Many analysts are pointing to 'blowback' for Pakistan after sponsoring the Taliban's rise in the first place, decades ago (which also had the help of the CIA in 'Operation Cyclone').

Islamabad accuses Afghanistan of sheltering Tehrik-i-Taliban Pakistan (TTP) militants who carry out cross-border attacks.

Analysts say the latest escalation marks the first time Pakistan has directly targeted Taliban government sites, or essentially going all out against Kabul, rather than limiting strikes to alleged TTP positions.

Pakistan has said its forces have taken out a number of tanks and armored vehicles, as well as artillery positions. The Taliban relies on equipment left behind and confiscated after US and NATO forces rapidly withdrew from the country in the summer of 2021.

Pakistan has struck Kabul and declared it’s in an ‘open war’ with Afghanistan, after Islamabad accused the Afghan Taliban of opening fire along the shared border.

The fighting follows days of hostilities, despite a ceasefire agreement in October. pic.twitter.com/uQO1NT4H9f

— Al Jazeera English (@AJEnglish) February 27, 2026

It remains that Pakistan's army has total force domination; however, the Taliban can still inflict pain through acts of terrorism, which Pakistani cities have suffered immensely under.

Acts of terror by Islamist groups have become almost a regular occurrence in Pakistan - with many suspected of having support through Afghanistan. For example, we reported on this major incident just weeks ago as follows:

At least 31 people were killed and 169 others injured on Friday when a suicide bomber struck a Shia mosque on the outskirts of Islamabad during Friday prayers, Pakistani officials said, in one of the capital’s deadliest attacks in over a decade.

The blast happened in the Khadija al-Kubra Imambargah mosque in the outskirts of Islamabad, with police saying the attacker had been stopped at the mosque gate before opening fire and setting off explosives among worshipers, according to officials cited by Reuters.

As for how the warring sides compare, regional publication Al-Monitor lays out the following:

Pakistan's armed forces benefit from good recruitment and retention, bolstered by equipment from its main defense partner China. Islamabad continues to invest in its military nuclear programs and is also modernizing its navy and air force...

Pakistan has 660,000 active personnel in its defense forces, of whom 560,000 are in the army, 70,000 are in the air force, and 30,000 are in the navy.

The strength of the Afghan Taliban's military is thinner, with only 172,000 active personnel. The group has, however, announced plans to expand its armed forces to 200,000 personnel.

The Taliban's international isolation has meant that it cannot modernize its military - but still, there have been reports of drone usage against Pakistan positions.

As is typical, Pakistan points the finger at Israel and India for fomenting instability in the region:

“I think we must not miss out at this point the timing of this attack by Afghanistan. If you look at the visit of Indian PM Narendra Modi to Israel, it will be easier for you to connect the dots and understand that who is behind these attacks.” – Foreign affairs expert Dr Hassan… pic.twitter.com/uGjwMADETA

— Pakistan TV (@PakTVGlobal) February 27, 2026

Taliban authorities said their forces carried out drone strikes against military targets inside Pakistan as clashes between the two countries continued, according to statements from the defense ministry and a government spokesperson on Friday.

Pakistan’s Information Minister Attaullah Tarar said Pakistani Taliban militants attempted to deploy drones against targets within Pakistan, but air defense systems intercepted them and no casualties were reported.

via Al Jazeera

Overall, Pakistan is experiencing some serious blowback for its years-long policies... Sky News' Yalda Hakim points out that "Pakistan spent decades backing and sheltering the Afghan Taliban - its defense minister acknowledged that to me on camera. Now it says Taliban-ruled Afghanistan is providing sanctuary to militants attacking Pakistan. The consequences are unfolding in real time."

Tyler Durden Fri, 02/27/2026 - 11:25

Justice Department Sues 5 More States For Refusing To Provide Voter Rolls

Authored by Naveen Athrappully via The Epoch Times,

The federal government has filed lawsuits against five states—Utah, Oklahoma, Kentucky, West Virginia, and New Jersey—accusing local officials of failing to provide full voter registration lists as requested, the Department of Justice (DOJ) said in a Feb. 26 statement.

“The Attorney General is uniquely charged by Congress with broad authority to request election records under the Civil Rights Act of 1960,” the DOJ said. “This Act allows her to demand the production, inspection, and analysis of statewide voter registration lists that can be cross-checked effectively for improper registrations.”

However, the states have failed to produce voter rolls requested by the attorney general, according to the complaints.

 

The Justice Department’s Civil Rights Division has now filed complaints against 29 states and the District of Columbia over the issue.

 

The lawsuit against Utah argued that the attorney general sent a letter seeking the state’s computerized statewide voter registration list on July 15. The state did provide the information on July 31, but this was the publicly available redacted version of the list.

On Aug. 14, the attorney general sent another letter, demanding that Utah provide a current, unredacted, electronic copy, the lawsuit said.

The state subsequently raised privacy concerns related to the demand for federal election records, and has yet to provide the full list as requested.

Multiple laws require state officials and election officers to maintain and preserve records relating to voter registrations and related actions. The lawsuit accused Utah’s chief election officer of violating the Civil Rights Act, the complaint said.

Similar allegations were made in lawsuits against officials from Oklahoma, Kentucky, West Virginia, and New Jersey.

“Accurate, well-maintained voter rolls are a requisite for the election integrity that the American people deserve,” Attorney General Pamela Bondi said. “This latest series of litigation underscores that this Department of Justice is fulfilling its duty to ensure transparency, voter roll maintenance, and secure elections across the country.”

Assistant Attorney General Harmeet K. Dhillon of the Civil Rights Division said that many state election officials are fighting them in court “rather than show their work.”

“We will not be deterred, regardless of party affiliation, from carrying out critical election integrity legal duties,” Dhillon said.

The Epoch Times reached out to officials from the five states for comments and did not receive a response by publication time.

On Sept. 16, the DOJ sued Oregon and Maine, accusing them of failing to provide voter registration rolls. The same month, similar complaints were filed against California, Michigan, Minnesota, New York, New Hampshire, and Pennsylvania.

In December, the DOJ filed lawsuits against Delaware, Maryland, New Mexico, Rhode Island, Vermont, Washington, Georgia, Illinois, Wisconsin, and the District of Columbia. Last month, Arizona and Connecticut were sued by the department.

Following Bondi’s letter requesting Minnesota provide access to the state’s voter rolls, Minnesota Secretary of State Steve Simon said in response on Jan. 25: “The answer to Attorney General Bondi’s request is no. Her letter is an outrageous attempt to coerce Minnesota into giving the federal government private data on millions of U.S. Citizens in violation of state and federal law. This comes after repeated and failed attempts by the DOJ to pressure my office into providing the same data.”

Simon said that Minnesota’s elections were “fair, accurate, honest, and secure,” and that “the law does not give the federal government the authority to obtain this private data,” such as Social Security and driver’s license information.

Election Integrity

The Justice Department’s attempt to secure full voter rolls from states follows President Donald Trump’s March 2025 executive order “Preserving and Protecting the Integrity of American Elections,” which required the attorney general to prioritize the enforcement of laws restricting voter registration and voting by noncitizens.

Republicans are also pushing forward the SAVE America Act, which requires Americans to prove their citizenship when registering to vote. It also mandates that citizens show photo identification when casting ballots, or include a photocopy of their identification when voting by mail.

The bill passed the House of Representatives on Feb. 11 but faces an uncertain future in the Senate.

Democrats have opposed the measure, with Senate Minority Leader Chuck Schumer (D-N.Y.) saying that the bill was “dead on arrival” in the chamber.

“The goal of the SAVE Act is the same: disenfranchising American citizens and making it harder for eligible people to vote, particularly low-income Americans and people of color,” Schumer said on the Senate floor on Feb. 9.

Earlier this month, Sen. Alex Padilla (D-Calif.) criticized the SAVE Act, saying that it would do more harm than good, according to a Feb. 2 statement from the lawmaker’s office.

“Voting by noncitizens in federal elections is already a felony and it is extremely, extremely rare. This bill does nothing to secure our elections while seeking to disenfranchise millions of married women, military members and spouses, and rural, low-income, and minority voters,” Padilla said.

Several progressive and left-wing groups have opposed the voter ID requirements, including the League of Women Voters, the American Civil Liberties Union, and the Brennan Center for Justice.

Meanwhile, Trump said in a Truth Social post on Feb. 13 that he plans to sign an executive order mandating voter ID for the midterm elections if the SAVE Act is not passed by the Senate.

“We cannot let the Democrats get away with NO VOTER I.D. any longer,” the president wrote.

“This is an issue that must be fought, and must be fought, NOW! If we can’t get it through Congress, there are Legal reasons why this SCAM is not permitted,” he said. “I will be presenting them shortly, in the form of an Executive Order.”

Tyler Durden Fri, 02/27/2026 - 11:05

Spanberger And Dems Lie About Gerrymandering Scheme

Authored by Ben Cline via RealClearPolitics,

Once you burn your credibility, it’s hard to get back.

Virginia Gov. Abigail Spanberger deceived voters and concealed her true leftist agenda to win the Governor’s Mansion last year. Now she and her fellow Democrats are lying to Virginians about a new gerrymandered congressional district map they placed on the ballot as a constitutional amendment on April 21.

It’s a naked attempt to make it impossible for Republicans to win election to Congress in most places in Virginia, and it’s why she was rewarded with the plum assignment of responding to President Trump’s State of the Union address this week.

The Virginia Supreme Court has already had one chance to stop the gerrymandering by upholding a judge’s ruling that Democrats cut legal corners to get the measure on the ballot. The justices, however, inexplicably chose to wait until the vote happens.

I filed another lawsuit to bring new challenges, along with my colleague, Rep. Morgan Griffith (VA-9), and the RNC and NRCC. We won in circuit court, blocking the referendum again, so our Supreme Court will have another chance to do the right thing.

As we wait for a ruling, it’s important that people have the facts.

Spanberger masqueraded as a moderate in her campaign and won ceaseless praise from the media for her focus on “affordability.” But she dropped that as soon as she was sworn in and went right back to what she truly believes.

She returned Virginia to the multi-state, radical environmental scheme that artificially raises electricity rates by $500 million every year. She’s currently considering a variety of tax increases proposed by Democrats in the Virginia legislature, including bumps in the sales and income tax, as well as taxes on everyday services like dog walking and gym memberships. She has yet to rule out raising taxes on anything.

All of this is the opposite of what she ran on.

Now Gov. Spanberger and her Democrats have turned to stealing congressional seats.

And naturally, they’re lying about that as well.

It’s nothing complicated. They’re taking Virginia’s current congressional district map, which produced six Democrats and five Republican members, and redrawing the lines to twist it into a 10-to-1 map in favor of Democrats.

Kamala Harris won here in the 2024 presidential race with less than 52% of the vote, but this map would award her party 91% of our congressional seats. 

They’re assigning new federal representation to Virginians who didn’t ask for it, and there’s every likelihood that some of the lines were drawn to benefit specific Democrat politicians. One thing that’s certain is that no one was thinking of the well-being of voters when they hatched this plot.

As an example, take Fairfax County, vote-rich and dominated by Democrats in Northern Virginia outside Washington, D.C.

The new map carves Fairfax into five pieces and attaches them to districts that reach deep into Virginia’s rural regions. Picture the county as an octopus that has tentacles running throughout the state, and you’ll have an idea.

The configuration ensures that most rural voters will be represented by people who live in Fairfax and were elected by voters in the D.C. suburbs. It’s difficult to imagine what these groups might have in common geographically, culturally, or economically.

To top it off, just a few days ago, Democrats in the General Assembly decided that they hadn’t cheated enough and twisted the screws even more to guarantee total victory in 10 of the 11 districts.

States usually redistrict following a census, but Democrats claim they must act now to balance Republican activities in other states. This excuse falls apart because most observers agree that Virginia’s new map is a particularly egregious example of partisan gerrymandering.

And Democrats lie when they talk about it.

The party that told us that Joe Biden was mentally sharp now wants us to think a 10-to-1 congressional map promotes “fair elections,” as their advertising claims.

They were even dishonest in the ballot question they wrote, which says it will temporarily “restore fairness” – without explanation or context – to elections in Virginia until the regular redistricting occurs in 2030.

We shouldn’t let politicians select their own voters, and Virginians were wise enough to see this coming.

Just six years ago, a whopping 66% of voters approved a constitutional amendment creating an independent redistricting commission to remove map-drawing from partisans. Unable to resist the lure of unchecked power, Virginia Democrats are trying to trick voters into undoing that so they can burgle those congressional seats.

National Democrats are paying attention.

House Minority Leader Rep. Hakeem Jeffries (D-NY) has already sent $5 million to the campaign to support the new map and pledged to spend “whatever it takes” on top of that.

Democrats hilariously claim to be restoring fairness.

But a party powerful enough to ram this down everyone’s throat isn’t the victim of unfairness. It’s the cause of it.

Rep. Ben Cline, a Republican, represents Virginia’s 6th District in the U.S. House of Representatives.

Tyler Durden Fri, 02/27/2026 - 10:35

Jack Smith's Secret Orders Targeting Patel And Wiles Should Alarm Us All

Authored by Jonathan Turley,

Former Special Counsel Jack Smith has long operated under Oscar Wilde’s rule that “the only way to get rid of a temptation is to yield to it.” 

Over the last few months, the public has learned of a wide array of secret orders targeting members of Congress, Trump allies, and others.

Now, the Administration has learned that FBI Director Kash Patel and White House Susie Wiles were also targeted by Smith in 2022 and 2023 when they were private citizens.

Smith was a controversial choice as Special Counsel because of his history of excessive legal arguments and tactics, including his unanimous loss before the Supreme Court in tossing out the conviction of former Virginia Governor Robert McDonnell.

His tendency to stretch the law to the breaking point also did not play well with juries in high-profile cases, as in his case against John Edwards, which ended in acquittal.

Despite such criticisms, Smith immediately returned to his past pattern of tossing aside any restraint or caution. Even Democrats this year expressed objections to his targeting of Republican members of Congress, including former House Speaker Kevin McCarthy.

Smith told carriers not to tell members of Congress that their calls were being seized. Not only did such records reveal potentially confidential sources, ranging from journalists to whistleblowers, but Smith’s gag order prevented Congress from responding to check the abusive demand.

Now, the Administration is alleging that Smith and the prior Administration effectively buried the targeting of Patel and Wiles. It took a year into the new Administration for these orders to be uncovered.

The early accounts of the orders contained equally disturbed elements. Reuters reported that “in 2023, the FBI recorded a phone call between Wiles and her attorney, according to two FBI officials. Wiles’ attorney was aware that the call was being recorded, and consented to it, but Susie Wiles was not.”

It is astonishing to hear of a lawyer agreeing to the FBI recording of an attorney-client meeting as a general matter.

However, to do so without informing your counsel would be a breathtaking invasion of such protected communications.

There is much we still do not know.

On its face, these orders appear consistent with the earlier abusive demands. Smith had virtually no basis for targeting Republican members and Trump allies. It was a fishing expedition in which Smith simply compiled lists of every well-known ally of President Trump.

There are also concerns over the response to this controversy. There are reports of 10 FBI employees being fired. Agents often carry out the orders of superiors in such investigations. The Administration should assure the public that these agents were afforded due process before being ousted due to their work on orders.

The recently disclosed files from these investigations are an indictment of Smith himself. He was given a historic mandate to investigate a former president. Rather than exercise a modicum of restraint to show the public that this was not a partisan effort, Smith yielded to his worst temptations in targeting a long list of Republicans.

In his prior testimony, Smith offered little to justify these orders beyond a shrug that such secret orders routinely occur. However, he was targeting a “who’s who” listing of top political opponents to President Biden and the Democrats.

To make matters worse, Smith struggled to release damaging information (and even schedule a trial) on the very eve of the 2024 presidential election. Every action that Smith took only magnified his agenda to influence the election. He became a prosecutor consumed by his antagonism toward Trump and his unchecked power.

Nothing was sacred for Smith. His demands in the investigation from the courts included a wholesale attack on free speech values.

Ultimately, these files are not only an indictment of Jack Smith but also of former Attorney General Merrick Garland, who failed to exercise his authority to oversee Smith and protect core constitutional values.

It is essential that Congress and the Administration fully investigate Smith’s surveillance demands.  Smith has long demanded accountability for others while evading such accountability for his own actions.

If past orders are any indication, the Patel and Wiles orders were likely based on sweeping generalities and demands for absolute secrecy. That is the signature of Jack Smith. Indeed, Smith appears to have replicated his increasingly infamous record with the collapse of two high-profile cases and lingering questions over his judgment and actions.

He has again yielded to his temptations, and the public has paid the price.

Jonathan Turley is a law professor and the author of the New York Times bestselling “Rage and the Republic: The Unfinished Story of the American Revolution.”

Tyler Durden Fri, 02/27/2026 - 09:40

OpenAI Secures Record $110 Billion Funding Round Backed By Amazon, Nvidia, & SoftBank

OpenAI has closed a new funding round that could total $110 billion, valuing the ChatGPT maker at $730 billion pre-money and potentially putting it on course for an IPO in the second half of the year, according to a new Financial Times report.

The three investors in the deal are Nvidia, Amazon, and SoftBank. People familiar with the deal say this opens the pathway to the public markets at the end of this year.

Breaking down funding numbers by strategic investors:

• Amazon: $15 billion upfront, plus $35 billion later if OpenAI goes public or achieves AGI

• Nvidia: $30 billion

• SoftBank: $30 billion

• Another $10 billion may come from sovereign wealth funds and other investors

The FT noted that the new funding round comes on top of the $40 billion already on OpenAI's balance sheet, giving the company more runway to rapidly expand and develop new models and AI infrastructure. OpenAI expects to remain unprofitable until 2030, when management forecasts it will turn free cash flow positive.

In a separate release, Amazon detailed its major multi-year partnership with OpenAI, centered on enterprise AI infrastructure, distribution, and custom model development.

Here are the highlights of the Amazon-OpenAI investment:

• Amazon will invest $50 billion in OpenAI, with $15 billion upfront and another $35 billion later if certain conditions are met.

• AWS and OpenAI will jointly build a "Stateful Runtime Environment" powered by OpenAI models and offered through Amazon Bedrock, aimed at helping customers run AI apps and agents with persistent context, memory, tool access, and compute.

• AWS becomes the exclusive third-party cloud distribution provider for OpenAI Frontier, OpenAI's enterprise platform for building and managing teams of AI agents.

• OpenAI will expand its AWS infrastructure commitment by $100 billion over 8 years, on top of an existing $38 billion agreement.

• As part of that, OpenAI will use roughly 2 gigawatts of AWS Trainium capacity, spanning Trainium3 and future Trainium4 chips, to support Frontier, Stateful Runtime, and other advanced workloads.

• OpenAI and Amazon will also develop custom OpenAI-based models for Amazon's customer-facing apps, giving Amazon teams another model option alongside its in-house Nova family.

"OpenAI and Amazon share a belief that AI should show up in ways that are practical and genuinely useful for people," OpenAI boss Sam Altman stated, adding, "Combining OpenAI's models with Amazon's infrastructure and global reach helps us put powerful AI into the hands of businesses and users at real scale."

Altman commented on today's announcement, saying, "As long as revenue keeps growing, the deals are not circular."

Well...

"As long as new investors keep coming, the Ponzi scheme won't unravel" - Bernie Madoff, maybe https://t.co/CZJRLTtAbk

— zerohedge (@zerohedge) February 27, 2026

Let's revisit our notes on the "circle jerk" AI vendor financing schemes as we've pointed out since last fall (read here & here).

Related:

• OpenAI Cuts Spending Plans From $1.4 Trillion To $600 Billion: What It Means For The Capex Cycle

The circle jerk keeps getting larger.

Tyler Durden Fri, 02/27/2026 - 09:10

US Begins Evacuating Some Embassy Staff In Israel 'While Flights Still Available'

"Persons may wish to consider leaving Israel while commercial flights are available," the US State Department announced Friday, signaling that US strikes on Iran could be imminent,.

It provided confirmation the US government has begun evacuating "non-emergency" personnel from the embassy in Israel and their family members, citing "safety risks" amid growing tensions with Iran.

via AFP

The new urgent announcement also strongly suggests that whatever military action ensues, it will mostly likely involve a joint operation between the US and Israel. Some have warned that Washington is essentially about to go to war on behalf of what are fundamentally Israel's interests in the region.

People in Israel would further be at risk given the potential for Hezbollah to renew strikes on the country's north, and then there's the threat of Houthi attacks from the south - as happened in the last conflict in June and prior.

Fox correspondent Lucas Tomlinson has noted that the last time the embassy issued such an evacuation notice it occurred just eight days before Operation Midnight Hammer (the June strikes).

Another regional journalist, Idrees Ali, as observed: "Many of the things that happened before the United States and Israel struck Iran last year are happening now."

But this time around the military build-up by the United States is much, much bigger - and days ago hit levels not seen since the 2003 Bush-ordered invasion of Iraq.

On February 27, 2026, the Department of State authorized the departure of non-emergency U.S. government personnel and family members of U.S. government personnel from Mission Israel due to safety risks.

In response to security incidents and without advance notice, the U.S.… pic.twitter.com/aWzX6Gk36x

— U.S. Embassy Jerusalem (@usembassyjlm) February 27, 2026

Axios also confirms that while the US Embassy is still operating for now, "US ambassador Mike Huckabee wrote in a message to embassy staff that whoever wants to leave the country should do so Friday."

The State Dept. notice states further, "The ambassador, diplomats and U.S. personnel working on assistance to U.S. citizens, security, military, political and intelligence affairs will stay in the country."

Canada has also newly issued a warning Friday for its citizens to leave Iran and the Mideast region, warning about the near future availability of commercial travel.

Starting the countdown to yet another major US initiated war in the Middle East?...

Everything appears to be in place. Additional F-35s have been deployed, refueling tankers have reached their designated positions with more en route, and the USS Gerald R. Ford has arrived in Israeli waters. And no deal on the nuclear issue still. https://t.co/YP9t8oQ3AL

— Levent Kemal (@leventkemaI) February 27, 2026

This adds to a growing list of countries telling their population to avoid the region or leave, including: Finland, Serbia, Poland, Sweden, India, Greek Cyprus, Singapore, Germany, Brazil, and others. China has also told its citizens in Israel to be prepared for an emergency and to prepare to leave the country. Any Chinese traveling in Iran are also being told to depart immediately.

Tyler Durden Fri, 02/27/2026 - 08:50

Surging Services Costs Spark Unexpected Surge In US Producer Prices In January

US Producer Prices came in hotter than expected in January, with the headline PPI rising 0.5% MoM (vs +0.3% exp), higher than the revised +0.4% MoM in December. This left Producer Prices up 2.9% YoY (hotter than expected but below December's +3.0%)...

Source: Bloomberg

Under the hood, we see a surge in Services costs (not tariff related) dominated the rise in PPI (while Energy saw deflation)

Final demand services: The index for final demand services advanced 0.8% in January, the largest increase since moving up 0.9% in July 2025. Most of the January rise in prices for final demand services can be traced to margins for final demand trade services, which jumped 2.5 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) Prices for final demand transportation and warehousing services advanced 1.0 percent, while the index for final demand services less trade, transportation, and warehousing was unchanged.

• Product detail: Over 20% of the January increase in prices for final demand services is attributable to a 14.4% jump in margins for professional and commercial equipment wholesaling. The indexes for apparel, footwear, and accessories retailing; chemicals and allied products wholesaling; bundled wired telecommunications access services; health, beauty, and optical goods retailing; and food and alcohol retailing also moved higher. Conversely, prices for system software publishing fell 12.2 percent. The indexes for guestroom rental and for apparel wholesaling also decreased.

Final demand goods: Prices for final demand goods moved down 0.3% in January, the largest decrease since falling 0.7% in March 2025. Leading the January decline, the index for final demand energy dropped 2.7 percent. Prices for final demand foods decreased 1.5 percent. In contrast, the index for final demand goods less foods and energy advanced 0.7 percent.

• Product detail: Nearly 80 percent of the January decline in prices for final demand goods can be traced to the index for gasoline, which fell 5.5 percent. Prices for chicken eggs, electric power, gas fuels, fresh fruits and melons, and ethanol also moved lower. Conversely, the index for search, detection, navigation, and guidance systems jumped 15.5 percent. Prices for nonferrous metals and for pork also rose.

The Energy component of PPI could be about to re-accelerate...

Core PPI (ex food and energy) surged 0.8% MoM and is up 3.6% YoY (both hotter than expected) - the fast pace of price increase since March 2025...

Source: Bloomberg

Margin pressures remain as input prices rise faster than output prices...

The bottom line is that this will likely lead to a hotter than expected Core PCE print - something The Fed watches closely.

Tyler Durden Fri, 02/27/2026 - 08:42

Futures Slide As Renewed AI Disruption And Private Credit Fears Spark Selling

The rollercoaster continues: US equity futures are in the red again, trading near session lows, and set to extend Thursday's losses with as stocks underperform after yesterday's spectacular plunge in the momentum trade as NVDA's post record-breaking earnings/guidance plunge spooked markets that nothing is resolved about where AI goes next. As of 8:00am ET, S&P futures were down 0.6%, and set for a monthly loss after a whirlwind February marked by twin fears of a bubble in the AI trade and of the technology’s disruptive power. Nasdaq futures dropped 0.7%. In the latest AI contradiction, CoreWeave plunged 12% after data center operator reported a bigger-than-expected loss and higher capex fueling concern about overspending on infrastructure. But in a mirror image, Dell is 12% higher after its outlook for sales of AI servers exceeded estimates, a sign of robust demand for machines helping fuel the AI data center build-out. 10-year Treasury yields slid below 4%, while the USD is flat. Commodities are mixed, with Energy higher and Metals mixed (Silver outperforming vs Gold flat). Today's macro data focus is on PPI and Construction Spending.

In premarket trading Mag 7 stocks are mixed: Nvidia is up 0.4% after sliding Thursday, other names are mostly lower (Alphabet little changed, Tesla -0.2%, Amazon -0.5%, Apple -0.5%, Meta Platforms -0.5%, Microsoft -0.8%). 

• Block (XYZ) rallies 18% after the financial technology company said it was reducing its workforce by nearly half in a bet on AI. Jack Dorsey’s firm also raised its full-year outlook for gross profit, which was already above the average analyst estimate.
• CoreWeave (CRWV) slides 12% after the AI infrastructure software company reported a bigger-than-expected loss and boosted capital expenditures, spurring concerns about the company overspending on infrastructure.
• Flutter (FLUT) is down 15% after the gambling company reported fourth-quarter results that fell short of Wall Street estimates. Guidance for 2026 was worse than expected, according to analysts, who pointed to increasing competitive pressures in the US sports-betting market as a key concern.
• NCR Atleos (NATL) jumps 16% as The Brink’s Company said it will acquire the company in a cash and stock deal valued at about $6.6 billion.
• Netflix (NFLX) is up 8% after the streaming giant dropped out of the fight to buy Warner Bros. Discovery, effectively ending the bidding war for the Hollywood studio.
• Zscaler (ZS) is down 9% after the security software company’s second-quarter results weren’t seen as strong enough to reverse recent negative sentiment toward software companies.

In other corporate news, Netflix rose more than 7% after dropping out of the bidding for Warner Bros. Dell Technologies surged 11% following a strong sales forecast for its AI servers. 

Nvidia suffered its worst day since April on Thursday, with the price action suggesting the world’s most valuable company is no longer being rewarded for spectacular results and remarkable guidance.

NVDA's plunge happens as the disruptive potential of AI has rattled US equities for weeks in what traders have dubbed the “AI scare trade.” The technology’s bellwethers have also lost momentum after powering S&P 500 gains for years, prompting investors to rotate into markets abroad and companies tied to broader economic growth.

“The outperformance highlights the possibility of a lingering overvaluation in some asset classes in the US, as well as doubts about the independence of the Federal Reserve’s future monetary policy,” said Guillermo Hernandez Sampere, head of trading at asset manager MPPM. “Barring an economic downturn in Europe, the outperformance should continue.”

“The outperformance highlights the possibility of a lingering overvaluation in some asset classes in the US, as well as doubts about the independence of the Federal Reserve’s future monetary policy,” said Guillermo Hernandez Sampere, head of trading at asset manager MPPM. “Barring an economic downturn in Europe, the outperformance should continue.”

As Wall Street tries to assess likely job losses at the hands of AI, Jack Dorsey’s financial technology firm Block is cutting 4,000 employees, nearly half its workforce, in a bet on AI changing the future of labor productivity. Then again, considering that Elon Musk fired 80% of Dorsey's last company before ChatGPT was even out - and it thrived - or that Block spent $68 million on a party a few months before the mass layoffs, suggests that the culprit here is bloat and terrible management, and not AI.

Block:
1. spend $68 million on a party
2. 200 days later fire 40% of workers
3. blame AI pic.twitter.com/TdgXnIVGNM

— zerohedge (@zerohedge) February 27, 2026

The market’s unease about private credit persists. In an rerun of the collapse of First Brands, a spectacular new private credit blowup in London has Wall Street chasing billions. And a private credit fund overseen by Apollo Global Management cut its dividend and marked down the value of its assets amid signs of strain in parts of its loan book.

Elsewhere, Anthropic, the AI start-up that has wiped billions off the market value of US stocks, remains in focus. US lawmakers, flummoxed by the Pentagon’s negotiating tactics, are warning that carrying out those threats would have significant consequences for the military ecosystem. Meanwhile, investment-grade bond markets, which had emerged as a safe haven during recent AI-driven swings in equities, are starting to show signs of strain.  

US stocks saw inflows of $2.2 billion in the week ended Feb. 25, according to BofA citing EPFR Global data. Strategists led by Michael Hartnett see international stocks outperforming US for the rest of this decade. 

"I don’t see any major correction coming, but any hint of a recession linked to AI in the US would certainly trigger some unpleasant trading,” said Andrea Tueni, head of sales trading at Saxo Banque France. “Europe is currently better positioned than the US and outperforming as its tech sector is much smaller and there is much less uncertainty on monetary policy.”

Earnings season wraps up next week, and has so far been somewhat disappointing, with the fewest S&P 500 companies beating estimates since 2022. Of the 481 to have reported so far, 73.4% have beaten forecasts, while nearly 22% have missed. No major US companies are expected to report on Friday, but Berkshire Hathaway’s annual report is due on Saturday, including Greg Abel’s first annual letter to shareholders on performance since taking over as CEO from Warren Buffett.

Europe’s Stoxx 600 was on track for an eighth straight monthly advance, its longest such streak in more than a decade; telecommunications and mining stocks lead gains, while travel and consumer products shares edged lower. Here are the biggest movers Friday:

• Deutsche Telekom shares rally while Vodafone dips following an El Español report that Telefonica is in talks over a potential acquisition of 1&1 in Germany
• Prysmian shares reverse earlier losses to trade as much as 2.3% higher following 4Q results from the Italian cable make
• Holcim gains as much as 1.5% after the French building materials firm reported fourth-quarter earnings that were slightly ahead of expectations and an outlook that is unlikely to trigger any major revisions to estimates, according to analysts
• Clariane shares jump 17%, the most since June, as analysts highlight improving margins and cost-saving initiatives at the French nursing home operator
• Saint-Gobain shares fall as much as 3.2%, the most since Jan. 13, after the French construction materials producer reported fourth-quarter results. Jefferies noted that like-for-like sales in the period trailed expectations
• Melrose Industries plunges as much as 16%, the biggest drop in almost a year, after earnings guidance from the aerospace business fell short of expectations, overshadowing a profit and cashflow beat delivered in 2025
• BASF shares fall as much as 5.4%, after the German chemicals company’s full-year results disappointed analysts, who expect consensus downgrades, even though a January pre-release had already revealed price and currency woes at the company
• Grifols shares declined as much as 8.3%, the most since April, after the Spanish company’s adjusted Ebitda for the fourth quarter missed estimates and it issued guidance that analysts say fell short of expectations
• Valeo falls as much as 4.9% following its results, despite guidance implying upgrades to consensus free cash expectations, after this metric also surprised to the upside in the second half of the year. Net income was, however, impacted by higher tax
• Wizz Air shares slid as much as 10%, the most since July, after shareholder Indigo Partners offered 10 million shares priced at £12.50, a discount of 6.4% to Thursday’s closing price
• Fugro shares fall as much as 12%, the most since September, after the Dutch geological data company saw its year-over-year adjusted Ebit plunge by 92% in what Jefferies says was a “challenging winter season”

Asian stocks traded mixed, with a key regional benchmark on track to close its best February on record as investors snapped up shares of the region’s AI infrastructure companies. The MSCI Asia Pacific Index gain as much as 0.6% Friday. South Korea’s Kospi fell 1%, as chipmakers Samsung and SK Hynix fell. Key gauges rose in Japan and Hong Kong, while Taiwan’s market was closed for a holiday. Asian stocks have been outperforming global peers, with the region’s hardware firms seen as beneficiaries of the AI buildout even as concerns grow over spending levels and business disruption. The MSCI regional gauge is up 6.7% this month, poised for the best February since it started trading in 1998. Chinese technology stocks in Hong Kong capped their worst month in two years, weighed by weak earnings and a lack of buying by mainland investors. Sentiment toward China’s Internet giants has cooled amid concerns over valuations and rising competition that’s eroding corporate bottom line. Meanwhile, global investors offloaded nearly $5 billion of South Korean equities on Friday, in a sign of profit taking after the equity benchmark rallied nearly 50% this year. The index rose past the 6,000 threshold this week, just a month after surpassing President Lee Jae Myung’s political goal of 5,000.

In FX, the dollar was set for a fourth straight monthly loss. The Norwegian Krone led G10 currencies with a +0.54% rise. The pound fell slightly against the dollar after a special election in the UK laid bare the unpopularity of Prime Minister Keir Starmer’s government.

In rates, treasuries extended gains, with the 10-year note on track for its best month in a year after yields have tumbled 26 basis points in February to 3.98%. Outperformance by front-end and belly steepened 2s10s spread by about 1bp, 5s30s by about 1.5bp. 10-year gilts and bunds are slightly cheaper vs US benchmark

In commodities, oil rose again, after sliding on Thursday. Gold traded flat, with prices headed for a seventh consecutive monthly advance.

The cross-asset moves reflect sustained demand for havens amid policy uncertainty from the Trump administration, tensions in the Middle East and questions about the strength of US economic growth. Swap traders added to bets on Federal Reserve interest-rate cuts, with a July move again almost fully priced after being briefly scaled back earlier this week.

US economic data slate includes January PPI (8:30am), February MNI Chicago PMI (9:45am, several minutes earlier for subscribers), December construction spending (10am) and February Kansas City Fed services activity (11am). No Fed speakers are scheduled. Bloomberg Economics expects producer price inflation, which shows price trends before they reach consumers and feeds into the Fed’s preferred gauge of inflation, the personal consumption expenditures index, to have slowed to 0.2% in January from 0.5%. Potentially, that could bolster the case for further rate cuts.

Market Snapshot

• S&P 500 mini -0.3%
• Nasdaq 100 mini -0.3%
• Russell 2000 mini -0.8%
• Stoxx Europe 600 +0.2%
• DAX +0.2%
• CAC 40 -0.1%
• 10-year Treasury yield -1 basis point at 3.99%
• VIX +1.1 points at 19.74
• Bloomberg Dollar Index little changed at 1188.36
• euro little changed at $1.1801
• WTI crude +1.8% at $66.38/barrel

Top Overnight News

• The United States and Iran made progress in talks over Tehran's nuclear program on Thursday, mediator Oman said, but hours of negotiation ended with no sign of a breakthrough that could avert potential U.S. strikes amid a massive military buildup. RTRS
• Vice President JD Vance said Thursday that while military strikes against Iran remain under consideration by President Donald Trump, there is “no chance” that such strikes would result in the United States becoming involved in a years-long, drawn-out war. WSJ
• Anthropic rejected the Pentagon proposal to settle a dispute over terms for military use of its AI software. BBG
• A long-running conflict between Pakistan and Afghanistan’s Taliban regime has turned into what Pakistan declared Friday to be “open war,” with attacks reported in Kabul and along the neighbors’ shared border. WSJ
• China announced it would remove a reserve requirement for forward contracts selling the yuan in a move aimed at cooling the currency’s advance. The yuan snapped its longest winning streak since 2010. Still, options traders are betting on a stronger yuan. FT, BBG
• Inflation in Japan’s capital cooled below the central bank’s 2% target for the first time in over a year, but the slowdown is unlikely to derail further interest rate hikes. WSJ
• Mizuho Financial Group Inc. is planning to replace about 5,000 administrative jobs in Japan with artificial intelligence over the next 10 years, as the country’s third-largest lender tries to boost productivity. BBG
• The pound fell to its lowest level against the euro in more than two months as the Greens won a by-election in Manchester and Reform UK received the second-highest number of votes. The result underscored the threats facing PM Keir Starmer. BBG
• Netflix shares jumped premarket (NFLX +740bps premkt) after it dropped its bid for Warner Bros., clearing the way for Paramount’s $111 billion deal. The decision allows the streamer to focus on buybacks and its “build vs. buy” strategy. BBG
• IG bond markets are showing signs of stress, with spreads widening as investors grow wary of default risks in the software sector and pressure in private credit. Risk premiums, however, remain below long-term averages. BBG

Trade/Tariffs

• China's MOFCOM announces adjustments to anti-discrimination measures against Canada effective Mar 1st till Dec 31st 2026, will not impose relevant tariffs on some imports from China.
• Japan's PM Takaichi said US needs to honour its commitments on tariffs.

A more detailed look at global markets courtesy of Newsquawk

APAC stocks were ultimately higher heading into month-end but with price action choppy following the weak handover from the US, where sentiment was clouded by tech weakness, while participants also digested the recent US-Iran talks in Geneva. ASX 200 mildly gained as strength in tech and telecoms atoned for the losses in financials and consumer stocks. Nikkei 225 traded indecisively amid a firmer currency and a slew of mixed data releases from Japan, in which Industrial Production disappointed, Retail Sales topped forecasts, and Tokyo CPI printed firmer-than-expected but slowed across the board with the Core reading falling beneath the central bank's 2% price target for the first time since October 2024. Hang Seng and Shanghai Comp were varied with outperformance in Hong Kong as participants digested earnings releases from the likes of Baidu and Sun Hung Kai Properties, while the mainland initially lacked direction in the absence of fresh catalysts and ahead of next week's annual "two sessions", while Trump-Xi summit preparations were said to falter. However, late upside was seen after comments from China's Politburo meeting in which it stated that China's development process during the 14th Five-Year Plan is extraordinary and that it is necessary to continue to implement a more active fiscal policy and a moderately loose monetary policy.Top Asian News

Top Asian News

• China Politburo held a meeting on Friday and noted that China's development process during the 14th Five-Year Plan is extremely unusual and extraordinary. Said that it is necessary to continue to implement a more active fiscal policy and a moderately loose monetary policy. Necessary to focus on building a strong domestic market and step up the cultivation and expansion of new growth momentum.

European bourses (STOXX 600 +0.3%) are broadly firmer, with the SMI (+0.7%) the clear outperformer after Swiss Re (+3.6%) posted a 47% Y/Y rise in 2025 net profit while announcing a USD 500mln share buyback. Lagging behind its peers is the CAC 40 (-0.1%), with very company-specific news to drive the index. European sectors are mixed. Telecommunications (+1.3%) outperform after Spain's Cellnex (+0.6%) saw 2025 operating profit rise more  than double annually and Telefonica (+3.7%) reportedly negotiating the purchase of 1&1 (+9.4%)in Germany in a EUR 5bln deal. On the flip side, Travel and Leisure (-1.8%) is underperforming despite positive IAG (-5.5%) earnings, in which the Co. beat FY profit expectations and announced a EUR 1.5bln share buyback.

Top European News

• UK former Deputy PM Rayner noted the Gorton and Denton by-election results are a "wake up call" and Labour "has to be braver"; Sky News suggests these remarks will be taken as a direct aim at UK PM Starmer and his leadership.
• EU Commission eyes a legal loophole to bypass Hungary's veto of a EUR 90bln euro loan, according to FT.
• UK Green Party wins parliamentary seat in Gorton and Denton, defeating UK PM Starmer's Labour in the by-election.

FX

• DXY is choppy but ultimately slightly softer following subdued APAC trade amid mixed sentiment, whilst the tone in Europe is tentative. Modest downticks in the index were seen as the EUR strengthened following the hotter-than-expected French CPI data (more below). Aside from that, newsflow in the European morning has been on the quieter side as USD traders gear up for US PPI data later in the session. DXY resides in a current 97.611-97.824 range at the time of writing, within Thursday’s 97.489-97.984 parameter.
• EUR/USD eked mild gains after oscillating around the 1.1800 focal point overnight, with a more convincing move above the level seen after the hotter-than-expected French and Spanish Prelim CPI metrics. EUR/USD resides in a 1.1789-1.1822 range awaiting the German Prelim CPI later today. The single currency then slipped to the unchanged mark after German state CPI metrics, where the Y/Y metrics generally showed a bit more cooling than what is forecasted for the mainland.
• GBP/USD languished near the 1.3500 level following the prior day's underperformance owing to credit concerns, and with overnight price action contained after UK GfK consumer confidence fell to its lowest level that was last seen in November. Overnight, UK journalists focused on the Gorton and Denton by-elections in which the Green party won, with Reform second and Labour third. With Labour losing a seat they held for almost 100 years, UK PM Starmer's leadership could be at risk. Nonetheless, GBP/USD saw little reaction to the results announcement, and currently resides in a 1.3461-1.3507 range, after finding support at its 200 DMA (1.3442) yesterday. Ahead, BoE’s Chief Economist Pill is due to give some remarks.
• USD/JPY retreated amid the early subdued risk appetite and following a slew of data, including Tokyo CPI, which printed firmer-than-expected across the board, but slowed from the previous with Core inflation back beneath the BoJ's price goal. The pair pared back some losses as the DXY recouped some overnight losses. USD/JPY trades in a 155.54-156.12 range vs yesterday’s 155.70-156.43 parameter.
• Antipodeans rebounded from the prior day's trough and narrowly outperform in the European morning, but with further upside contained by the mixed risk appetite and amid a weaker CNH, which was pressured after the PBoC actions to slow currency appreciation, in which it cut the FX risk reserve ratio to 0% and set a weaker-than-expected CNY fix by maintaining it at the prior day's level.

Fixed Income

• USTs are firmer by a handful of ticks this morning, and trades within a 113-16 to 113-19 range. Really not much driving things for the US paper this morning, and remains towards the prior day’s peaks. The upside in USTs on Thursday was facilitated by subdued risk appetite and a decent 7yr auction. Focus remains on the geopolitical situation, following US-Iran talks. Meetings have concluded, and whilst there have reportedly been some positive developments, uncertainty remains. Reports suggest that US President Trump is expected to convene senior advisers on Friday for detailed discussions on Iran and to decide on a course of action toward Tehran. Internal deliberations are said to be focused not on whether a strike would occur but on its scope and potential targets. Next up, US PPI.
• Bunds are incrementally firmer/flat, and currently reside within a 129.76 to 129.99 range. Initially held towards recent highs, but has since slipped towards the unchanged mark following the hotter-than-expected French/Spanish inflation metrics. Though the German State CPIs thereafter spurred some modest upticks in Bunds, given the Y/Y metrics generally showed a bit more cooling than what is forecasted for the mainland.
• Gilts are firmer by around 10 ticks, to currently trade near the upper end of a 93.00-93.30 range. Overnight, UK journalists focused on the Gorton and Denton by-elections in which the Green party won, with Reform second and Labour third. With Labour losing a seat they held for almost 100 years, UK PM Starmer's leadership could be at risk – which in theory would place pressure on UK-assets. This has not been reflected in price action this morning, though analysts at GS opined that the risk had already been priced in by markets.
• Japan sold JPY 2.15tln in 2-year JGBs; b/c 3.32x (prev. 3.88x); average yield 1.244% (prev. 1.253%).
• Australia sold AUD 800mln 2.75% November 2028 bonds, b/c 3.86, avg. yield 4.1849%.

Commodities

• WTI Apr’26 and Brent May’26 futures are firmer within USD 64.85-65.90/bbl and USD 70.42-71.49/bbl intraday ranges thus far, respectively. Gains follow yesterday’s US-Iran negotiations, which ultimately failed to reach an accord, but the sides agreed to continue technical talks. Mediators reported "unprecedented openness to new and creative ideas". Both sides reportedly moved closer on specific elements of an agreement related to nuclear limits and sanctions relief. That being said, major sticking points remain.
• Spot gold trades within a narrow range after only modestly gaining on yesterday’s US-Iran saga, which ended in no deal, but talks are poised to continue next week. Traders will be focused on any potential US military action this weekend in a bid to pressure Iran. Spot gold resides tight USD 5,167-5,200.64/oz range at the time of writing. Spot silver is firmer by some 1.5% intraday but contained to within Wednesday’s ranges.
• Base metals are firmer across the board despite the choppy risk tone in Asia, but prices are underpinned by the softer USD. Some desks attribute the rise to the stalled US-Iran talks and strengthening demand signals from China. The upside also comes ahead of next week’s China “Two Sessions”, where formal approval of the 15th Five-Year Plan and new stimulus measures for infrastructure and technology (AI, EVs, grid networks) are anticipated. 3M LME copper resides in a USD 13,243.73-13,508.13/t.
• London Metal Exchange announces the consultation for introducing regulatory position limits, exemptions and position management controls.
• Iron ore port stockpiles hit record levels in China as mines continue to add supply.
• Abu Dhabi reportedly offers more oil to partners, heading into the OPEC+ meeting, Bloomberg sources say.
• India is reportedly looking to cut coal imports for power plants at least 30% this year, sources say.
• China SHFE warehouses weekly changes: Copper +43.7%, Aluminium +19.7%, Zinc +44.9%.
• A local ceasefire has been established near the Zaporizhzhia nuclear power plant, TASS reported. Further by RIA stating one power line is being repaired at the power plant.

Geopolitics: Middle East

• US authorises the departure of some embassy personnel and families from Israel amid safety risks.
• Iran urges US to abandon "excessive demands" to reach deal, Sky News Arabia reported citing AFP.
• Iranian spokesperson said "In the event of any conflict, American soldiers and their equipment will be destroyed, and all US resources and interests in the region will be within the range of Iranian forces", via Iran International.
• Top Middle East commander briefed US President Trump on military options on Iran, according to ABC News.
• US VP Vance said negotiations depend on what the Iranians do and there is no chance that any potential strikes on Iran will result in engaging in a war for years.
• US President Trump is expected to convene senior advisers on Friday for detailed discussions on Iran and to decide on a course of action toward Tehran, according to Israel Hayom citing US officials. Internal deliberations are said to be focused not on whether a strike would occur but on its scope and potential targets, while options under discussion include nuclear facilities, missile sites, state institutions and infrastructure.
• Iranian Foreign Minister said further progress has been made in our diplomatic engagement with the US, also said mission of the technical teams is as important as our mission.
• Oman's Foreign Minister is scheduled to meet with US VP Vance and other US officials in Washington on Friday.

Geopolitics: Others

• China said it is not possible to join denuclearisation talks at this stage.
• AFP reported of clashes near a major border crossing between Afghanistan and Pakistan.
• Afghan Ministry of Defence said their military operation resulted in casualties among Pakistani forces and came in defence of their territory and people, while it vowed to respond to future attacks.
• Loud explosion heard in Afghanistan's capital of Kabul and Pakistani fighter jets are reportedly conducting a raid on Kabul.

US Event Calendar

 

DB's Jim Reid concludes the overnight wrap

 

d

Tyler Durden Fri, 02/27/2026 - 08:30