Mass Casualties In Large Russian Assault On Ukraine's Capital, Air Defenses Dwindle

Ukraine started the week with near record-setting drone attacks on Moscow, with over 600 UAVs sent against the Russian capital Monday night into Tuesday.

The expected major Russian retaliation has come overnight, with a huge missile and drone barrage on the Ukrainian capital. Many dozens were sent, killing over 16 people and injuring more than 40, local authorities report.

Ukrainian media

The casualty rate was high despite that Ukraine says it managed to intercept nearly 90% of inbound projectiles, which it did not give a total figure for.

Local media reports indicate the capital city's Solomianskyi district district was the worst hit:

In the Sviatoshynskyi district, a Russian attack damaged buildings on non-residential property. In addition, a fire broke out in the warehouse facilities there.

In the Solomianskyi district, debris damaged the upper floors of a 9-story residential building, after which a fire broke out there. Rescue workers have already extinguished it. Windows were also shattered in four nearby residential buildings.

At another location, debris caused a fire on the upper floors of a 4-story building.

In addition, a school and a children's hospital were damaged in the Solomianskyi district. Windows were shattered at the hospital, and cars caught fire on its grounds. The fire has been extinguished. Garages were also damaged.

President Zelensky used the devastation to once again call on the West to urgently provide more Patriot systems, amid dwindling anti-air supplies.

"The interceptors for Patriot systems have not yet been replaced, and they are needed every day," Zelensky wrote in a Telegram post on Thursday. "Each additional missile saves the lives of our people."

The Russian defense ministry said in familiar messaging that it was targeting military-industrial sites connected to the Ukrainian armed forces.

A Russian ballistic missile attack struck Ukrainian capital Kyiv overnight on Wednesday, killing at least nine people and wounding 60 others, according to Mayor Vitali Klitschko. #WorldNow pic.twitter.com/W1LFPApSO1

— CGTN (@CGTNOfficial) August 20, 2026

In the meantime, an example of Ukraine's own latest aerial assaults deep into Russian territory is seen in the following: "One regional publication notes that among the latest include: "in Russia, authorities in the republic of Tatarstan said several people were injured and homes were damaged in a Ukrainian drone attack."

Tyler Durden Thu, 08/20/2026 - 12:00

Bessent: Aim Is To 'Collapse' Iran Regime Through Economic Warfare, But US Unlikely To Restart Major Combat Summary

• US shifts toward economic warfare, away from military strikes: Bessent says maximum sanctions likely mean no major new military campaign for now.
• Regime change rhetoric persists: Bessent says Washington intends to "collapse" Iran's regime.
• USS George Washington arrives: A new US carrier is now operating in the Middle East, relieving the over-extended USS Lincoln.
• Iran rejects US threats as a Trump "diversion": Tehran calls the campaign "economic terrorism" and says Washington is seeking an exit.
• Axios claim of 'stealth corridor' where oil is moving steadily through Hormuz results in skepticism & some pushback.

//--> //--> //--> Strait of Hormuz traffic returns to normal by September 30?
Yes 6% · No 95%
View full market & trade on Polymarket

*  *  *

Bessent: Going to 'Collapse this Regime'

US Treasury Secretary Scott Bessent in a CNBC appearance seemed to give additional confirmation that further Pentagon operations targeting Iran are unlikely to happen down the line. He also furthered Trump's 'Economic D-Day' plan and threat.

"If we are doing the maximum economic pressure, then that means that likely there will not be a large-scale kinetic restart," Bessent said in a "Squawk on the Street" interview. 

He previewed a press conference which the administration plans to give Monday to "talk about exactly what we're going to do." Apparently the White House is keen on resurrecting Bush-Cheney era talking points in the effort to push global countries to comply with a full economic siege and strangulation of the Islamic Republic. According to CNBC:

In a preview of the plan, he said that the U.S. will be telling all of its allies, “You are either with us or against us.”

“If you insist on doing business with [Iran], either transferring money, buying their oil or doing seaborne ship transfers, then the U.S. Treasury and the U.S. government ... will put its full might and force toward enforcing against you,” Bessent said.

“This is going to be the greatest coordinated economic isolation in the history of the world,” he said.

He also said in the interview at one point that "we are going to collapse this regime." Of course, none of this is necessarily new in terms of talking points'...

Bessent: "I'm not sure why oil has popped up on this, because for now -- and it's at the president's discretion -- if we're doing the maximum economic pressure, then that means that likely there will not be a large scale kinetic restart. But I would emphasize that is for now ...… pic.twitter.com/IYsWhsomgN

— Aaron Rupar (@atrupar) August 20, 2026

USS Washington Carrier now in Region

The US Central Command (CENTCOM) has on Thursday confirmed the USS George Washington is now deployed in the Middle East, following the lengthy, over-extended deployment of personnel onboard the USS Lincoln, which has sparked crisis and media frenzy over poor conditions, lack of supplies, and worsening morale.

"The George Washington Carrier Strike Group is operating in Middle East during a scheduled deployment after arriving in the CENTCOM theater yesterday," the command said in a statement posted on X.

CENTCOM image of the USS George Washington flight deck

The USS Washington will now be the military's frontline carrier leading the mission in regional waters, which has featured an ongoing blockade of Iranian ports.

Iran Responds to Trump's 'Economic D-Day'

President Trump had the evening prior issued a Truth Social post describing a new "ECONOMIC D-DAY" against Iran, declaring that his total economic war against Tehran will be the "MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY."

Trump said that with Tehran's military and military-industrial base reduced to "now rubble" and its "currency worthless," he will unleash severe economic consequences against "ANY country that allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran."

On Thursday Iranian leaders responded to the D-Day threat, with Iranian Foreign Minister Abbas Araghchi stating on X that Trump’s announcement is designed to distract from Washington’s "unprecedented debt & surging interest costs". He said the new economic measures will "bring further defeat" to the US. He added that "US economic terrorism threatens [the] global economy and sovereignty worldwide.

US Desperately Seeks Exit, Says Iranian Official

Another top Iranian official elsewhere asserted the US seeks exit from the region:

Iranian Parliament Speaker Mohammad Bagher Ghalibaf visited Iraq on Wednesday and said that the US was seeking to exit the region, comments that come following a report from The Washington Post that said the Pentagon is considering pulling back from the Persian Gulf after many of its bases in the area were heavily damaged by Iranian strikes.

Iran's Deputy Foreign Minister Kazem Gharibabadi also weighed in with another message, saying Washington is headed towards its next defeat. "They claim Iran is on the verge of defeat, hanging by a thread, yet they are begging all their allies to help them," he posted on X.

Meanwhile Qatar is still seeking mediation and de-escalation, with Qatar’s Foreign Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani having said Thursday that traffic in the Strait of Hormuz must go back to what it was before. He urged that no party go back to "blackmailing" the other.

"The consequences of this war were grave, not only on the Gulf region but elsewhere in the world," Sheikh Mohammed told reporters at a press briefing following high-level discussions in El Alamein, Egypt.

"We need the situation to go back to what it used to be before" he said. "We condemn any threats in this regard in any obstacles."

Axios Report on 'Stealth' Hormuz Corridor

On the question of global shipping flows through the strait, much remains to be seen following a controversial Axios report issued Wednesday which said the Pentagon has successfully established a stealth corridor in and out of the strait. Here are the key untested claims, which await verification:

• Under the operation, which has been underway for the last several weeks, 15–20 tankers have entered and exited the strait each night through a southern channel along the coast of Oman.
• About 10 million barrels of oil a day — roughly half the pre-war volume — are being transported out of the strait and injected into the global energy market, the officials said.

If this is the case, then it's likely to lead to further rounds of war, given Iran is unlikely to sit back and allow the corridor to run smoothly...

I fully agree: "Iran is unlikely to accept a situation in which it cannot export oil while other Gulf producers continue to do so. Paradoxically, therefore, America’s relative operational success could become a driver of further Iranian escalation." https://t.co/I2IuU0deyU

— Hamidreza Azizi (@HamidRezaAz) August 20, 2026

'Stealth' Corridor Story True?

Of course, many analysts have pointed out that Axios has not been reliable on oil and Iran related reports, which tend to come out at sensitive moments timeline-wise, perhaps for maximum impact on markets.

Regional watcher and Atlantic Council author Danny Citrinowicz writes, "There is a fundamental paradox at the heart of the current U.S. approach to Iran: Washington wants to avoid another major military campaign, yet the very strategy it is pursuing to achieve that goal may make renewed military escalation increasingly difficult to avoid."

"The administration appears to believe that it can dramatically intensify economic pressure, including through aggressive enforcement of secondary sanctions, while keeping the confrontation largely within the economic domain," he continues. "But that assumption misunderstands both Iran’s position and the incentives facing its current leadership." Indeed Washington has seemed to miscalculate and underestimate Tehran at every turn of this nearly 6-month long conflict.

Tyler Durden Thu, 08/20/2026 - 11:39

EU NatGas Hits 2023 Energy Crisis Levels As Trump's "Economic D-Day" Clouds Hormuz Reopening

European natural gas prices surged to levels last seen during the energy crisis triggered by Russia's invasion of Ukraine, when severe supply disruptions sent global markets into turmoil.

The catalyst was an overnight Truth Social post from President Trump declaring "ECONOMIC D-DAY" against Iran. The announcement raises the probability of prolonged disruption in the Strait of Hormuz, a critical maritime transit corridor for Gulf energy exports.

For Europe, continued disruptions in the Strait of Hormuz would constrain access to Gulf LNG, intensify competition for seaborne cargoes, and deepen the continent's reliance on US supplies. With European storage inventories already well below seasonal norms and the winter replenishment window narrowing, traders are slapping a premium on natural gas prices on Thursday.

Dutch front-month futures, Europe's gas benchmark, rose as much as 2.5% today and soared above 65 euros per megawatt-hour, a level last seen in 1Q23.

Trump stated in an overnight Truth Social post that, with Tehran's military and military-industrial base reduced to "now rubble" and its "currency worthless," he will unleash severe economic consequences against "ANY country that allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran."

Earlier this week, Simon Penn, a London-based UBS macro strategist, focused on Germany's NatGas storage, which is only 50% full, compared with 57% a year ago and well below the 2009-25 average of 77%.

Europe, more broadly, is well below the 2009-25 average of 74%, with storage currently at around 61%.

It's not just low NatGas storage levels that Europeans have to worry about at this time of year, but also a diesel shortage. Combining these two problems, Samantha Dart, co-head of global commodities research at Goldman Sachs, recently warned that this energy crunch is "what keeps her up at night."

Must-Reads:

• "Really Only One Thing Worries Us A Lot": Here's What Keeps Goldman's Commodities Guru Up At Night
• Winter Is Coming: Europe Faces Twin Diesel And NatGas Crunch
• "Generates A Number Of Risks": UBS Warns German NatGas Storage Levels Alarmingly Below Seasonal Norms

Morgan Stanley analyst Martijn Rats wrote earlier that "the window to normalize before winter is rapidly closing." Translation: Lower NatGas stockpiles will put a bid under prices and fuel inflation across the EU.

At this point, Europeans had better hope that a strong El Niño would produce relatively mild weather. Otherwise, the continent could face a cold and extremely expensive winter.

Tyler Durden Thu, 08/20/2026 - 11:20

Of Anchovies And Blueberries – Why El Niño Matters

Authored by Nick Smallwood via BondVigilantes.com,

Why aren’t we talking more about El Niño?

After an exceptionally hot, dry summer in Western Europe and elsewhere, climate discussions proliferate. But neither mainstream media nor markets seem to be seriously discussing the risks and opportunities presented by what scientists appear to agree will be a “super El Niño”.  

In a world where food supplies have already been curtailed by the Russia-Ukraine conflict (especially wheat and sunflower oil), and where next year’s crop yields could be hit by the high price and/or scarcity of fertiliser due to the closure of the Strait of Hormuz – through which 30% of global nitrogen and 50% of sulphur traditionally flow – a particularly strong El Niño seems bound to have a substantial impact on the economies of various South Pacific nations, and food-price inflation globally.  

It will also increase the price of logistics. As quoted in the FT on 11th August, raising the cost and decreasing the frequency of transits of the Panama Canal (whose water levels have already dropped dangerously low) will also be inflationary. As food-price inflation has a significant effect on emerging markets, these circumstances should lead to rising rates and currency volatility. We would anticipate plenty of investment opportunities for fixed-income, currency and (agricultural) commodity investors. 

The first point to make is that we are facing – yet again – a climate event of historic proportions. The US National Oceanic and Atmospheric Administration (NOAA) forecasts an 81% likelihood of a “very strong El Niño” (see graph), defined as one where the Pacific warms more than 2°C above the seasonal average and the highest classification they use. This event, however, seems set to be particularly dramatic. Australia’s Bureau of Meteorology predicts temperatures rising to 3.5°C above average. Considering that the previous peak in November 2015 came in at +2.6°C, we seem set for a profound climate event that smashes all previous records. 

Source: US National Oceanic and Atmospheric Administration (NOAA) July 2026

One of the countries most heavily affected by El Niño is Peru, whose GDP growth can be reduced by over one percentage point by its impact. Extreme weather causes disruption, whether by flooding roads, impacting supply chains or affecting crop yields. Knowing El Niño is coming often deters economic activity and investment as people hunker down for a tough year. 

But it is quite amazing how the effect of El Niño on even a relatively small country like Peru can have a global impact in certain areas.

For instance, Peru is the world’s largest exporter of blueberries (over $2.5bn in 2025), so a substantial reduction in blueberry production will affect the availability and price of this fruit globally.

Next, consider the humble anchovy, which is fished for in great numbers off Peru’s shores. In fact, Peru’s anchovy fishery is considered the largest in the world by volume. During El Niño, the warm waters stress the fish and render them infertile, driving them deeper down to find cooler currents. Peru therefore seems likely to miss out on at least one of its two fishing seasons, with obvious implications for the local fishing industry.

What is less well known is that Peruvian anchovies are used to produce 20% of the world’s fishmeal, which is fed to farmed fish, other aquaculture and livestock. 

It therefore seems likely that people across the globe will notice the cost of fish rising in supermarkets next year. 

Those are just a couple of examples of local effects rippling across the world. But of course the warming of the Pacific Ocean will have a tremendous impact on crop production everywhere. The table below shows the scale of what may well hit us next year. To highlight a few stark examples, Australian wheat yields could collapse by up to 60%, global cocoa and coffee output could fall by 15% and we could see 10% declines in Brazilian corn. The weather will become more extreme, especially in South America, with typhoons, flooding and droughts expected to be more prevalent than usual. This is why we feel that the outlook for food production should have a higher profile than it does because the ramifications could be huge.

Parts of east Africa face serious shortages of staple grains and the prospect of food price inflation more generally is very real – some might say inevitable. 

Source: Band of America ML USDA paper July 2026

We therefore feel strongly that, while the eyes of the world have so far been on the oil price and energy costs, a lot more consideration should be given to the effects of global food supply constraints and prices, especially in Emerging Markets. 

Food prices are a much larger component of inflation baskets than energy in many emerging economies, particularly in Asia (see chart below). 

So while it should surprise nobody that Colombia, Peru and Brazil tend to suffer during periods of El Niño, it may come as more of a shock to realise that the inflationary impact is of similar magnitude on the other side of the world in China, Indonesia, Taiwan, Thailand and Vietnam. Nor does Africa escape its effects, with Egypt and South Africa traditionally the most vulnerable, while in the developed world the UK also takes a hit due to its high proportion of imported food. As we enter the southern hemisphere’s planting season and El Niño begins to take hold, these effects will become more apparent.  

All things considered, the risks of a significant inflationary shock in 2027 driven by food prices – and the real possibility of actual shortages in some parts of the world – have a significant effect on emerging markets.  The risks are rising, and markets are just not pricing it in. 

Source: National statistics, J.P. Morgan, June 2026. Latest data available.
Information is subject to change and is not a guarantee of future results.

However, as always, there is a silver lining, which is that disruption brings opportunities as well as risks. 

Investors in agricultural commodities have a fascinating year ahead. Rising inflation should mean a concomitant rise in rates, which will have a significant impact on currencies and local-currency bond markets. There will also be idiosyncratic stories driven by extreme weather. For instance, the last El Niño caused very heavy flooding in southern Brazil in May 2024, destroying crops and local businesses. In turn, this caused fears of a major deterioration in asset quality for the local bank, Banco do Estado do Rio Grande do Sul (BRSRBZ), whose outstanding bond price dropped to 89. 

Source: M&G Bloomberg Brazil Banco do Estado do Rio Grande do Sul  5.375% 2031. January 2026

The relatively few investors who followed the name saw how swiftly the government reacted with a support package for the state and bought the bond near its lows.

It was called at par on time early this year. It would be a major surprise if we don’t see further such opportunities emerge this time around.

Tyler Durden Thu, 08/20/2026 - 11:00

Bitcoin Tops $72k After Largest Single-Day Crypto Short Liquidation In History

Bitcoin surpassed $70,000 for the first time in over two months, propelled by US Treasury Secretary Scott Bessent’s 'Operation Twist'-like move pushing US bond yields (and the dollar) lower followed by a high-stakes meeting President Trump held with crypto industry leaders.

“When yields drop and the dollar weakens, risk assets tend to rally, and we’ve already seen Bitcoin move higher on the news,” said Jeff Mei, chief operating officer at BTSE.

This morning, bitcoin has extended those gains, tagging $72,000...

And Ethereum has surged back up to $2300...

Which lifted ETH/BTC to its strongest level since the start of the year...

Bitcoin ETFs saw major inflows this week, especially yesterday, "as further proof of how institutional demand for crypto-assets is steadily growing,” said Vladimir Tikhomirov, co-founder of decentralized-finance firm Algebra.

But, probably the most notable feature of the price action of the last 24 hours (aside from its scale) was the unprecedented liquidation of short crypto positions...

Data from CoinGlass shows ongoing crypto short liquidations at $3.1 billion for Aug. 19-20.

Thursday’s tally was largest single-day wipeout of shorts ever recorded.

As CoinTelegraph reports, CoinGlass shows Bitcoin accounting for just over half of the total short liquidations at $1.65 billion.

The numbers do not represent the largest crypto liquidation event if long positions are included. It is dwarfed by the $20 billion long liquidation cascade that followed Bitcoin’s reversal from the most recent all-time high of $126,200 in October 2025.

In US dollar terms, data from CoinMarketCap puts Thursday’s total liquidations in seventh place historically, calculating the day’s long and short liquidations as $3.25 billion.

Rajiv Sawhney, head of international portfolio management at Wave Digital Assets, said yield-curve control “was the second-biggest market catalyst on our bucket list that could potentially supercharge a durable Bitcoin rally.”

The biggest catalyst would be a government mandate to buy Bitcoin for a national reserve, he said.

Bitfire Research notes that this rally was not driven by a single headline, but by a convergence of multiple catalysts: an overcrowded short structure meeting regulatory tailwinds, falling long-end yields, and cross-sector capital rotation.

The most direct trigger came from overcrowded short positions accumulated over six months of consolidation. Bitcoin's prolonged sideways trading around $60,000 allowed leveraged shorts to pile up. When prices broke through key liquidation clusters, forced buybacks triggered a chain reaction of covering, creating a positive feedback loop that amplified the squeeze.

Importantly, the spot market had already been signaling institutional accumulation before the derivatives squeeze erupted. On-chain data monitored by Bitfire Research reveals that institutional capital — including entities with listed company affiliations and vintage whale labels — had been actively accumulating at the $60,000 level. Confirming this picture, Bitfire Group's OTC desk posted a record-breaking July, with total trading volume surging 257% month-over-month. These two data streams — on-chain and OTC — point to the same conclusion: institutional spot buying had already picked up significantly before the price breakout, laying the groundwork for the rally.

On the policy front, the SEC unveiled a new digital asset regulatory framework with a safe harbor mechanism: up to $5 million in the launch phase and up to $75 million annually thereafter, with issuers able to exit securities classification upon completing compliance milestones. This sharply reduces compliance uncertainty for early-stage crypto projects, attracting incremental capital to reassess crypto risk pricing.

Macro liquidity also improved. After the 30-year US Treasury yield hit a near two-decade high, the Treasury announced plans to at least double its long-term bond buyback program, pushing the 30Y yield from 5.337% to 5.189%. Gold surged 4.33% in tandem. The decline in long-end yields opened room for Fed policy adjustments, providing liquidity support for high-beta risk assets.
 
On capital rotation, funds that had piled into AI narratives earlier in the year showed signs of returning. With Anthropic's Q2 revenue growth showing a second-order slowdown, the market began reassessing return expectations across asset classes, and crypto's relative appeal regained attention.

Additionally, Bloomberg reports that the return of positive sentiment to the crypto market was supported by Trump's meeting with crypto executives from firms including Coinbase, Payward, and Blockchain.com. The move helped revive optimism around the Clarity Act, a crypto market structure bill that failed to make it to a vote before the Senate’s August recess.

Trump called on Congress to pass a “fair version” of the Clarity Act, telling the crypto and finance executive attendees at the White House that market structure legislation is the next step in his administration’s digital asset agenda.

“Now we need Congress to take the next step by passing the Clarity Act, a fair version of the Clarity Act,” Trump said.

“It’s a very, very powerful structure legislation which will keep us ahead of China, keep us ahead of everyone else. We’ll open the door to the next wave of innovations and innovators.”

The legislation has stalled over a fight regarding ethics provisions. Trump urged the Senate to pass the bill, and the chamber is expected to take it up again when it returns in mid-September.

Tyler Durden Thu, 08/20/2026 - 10:40

FBI Seizes Eric Swalwell's Electronic Devices At San Francisco Airport Amid Sexual Misconduct Investigation

The FBI executed a search warrant against former congressman Eric Swalwell on Saturday after he landed at San Francisco Airport - seizing his electronic devices, including his cell phone, as part of a federal investigation into allegations of sexual misconduct, the Daily Mail reports.

According to the report:

The agents, armed with additional court-approved search warrants, then entered his house in Washington, D.C. on Sunday, seizing additional undisclosed potential evidence,  well-placed sources tell the Daily Mail.

Sources say Swalwell started his day Saturday in Washington, where he still maintains a residence with his wife and three children.

He headed to the airport later in the day and flew to his home state of California. The feds were waiting for him when he stepped off the plane.

According to sources, Swalwell was cooperative.

The following day, neither he nor his wife Brittany Watts were home when the feds rolled up to their property in Northeast DC.

The DOJ launched a criminal investigation into multiple sexual assault and misconduct allegations lodged against the California democrat. Meanwhile, the Manhattan District Attorney’s Office is investigating an alleged 2024 sexual assault in a New York City hotel room involving a former staffer, while the Los Angeles County Sheriff’s Department and District Attorney’s Office have opened inquiries into a separate 2018 claim. Prosecutors have been assigned to review evidence in the LA case.

Agents, armed with additional court-approved search warrants, also entered his house in Washington, DC on Sunday

Swalwell stepped down from congress in April amid bipartisan pressure and a House Ethics Committee probe into the claims, after the San Francisco Chronicle and CNN reported claims from a former staffer and three other women. The former aide accused Swalwell of sexually assaulting her on two occasions: once in 2019 while she was employed by him, and again in April 2024 after a gala event in New York, where she said she was too intoxicated to consent and attempted to refuse. Three additional women described unwanted explicit messages, unsolicited nude photos, and harassment, some occurring during his gubernatorial campaign.

Then a fifth woman, Lonna Drewes - a Beverly Hills-based former model and fashion software entrepreneur - held a news conference to detail her accusations. Drewes alleged that in July 2018, after meeting Swalwell socially and believing they were developing a friendship, he invited her to his West Hollywood hotel room under the pretense of picking up papers. She claimed he drugged her drink, raped her, and choked her until she lost consciousness. Drewes said she had only one glass of wine that evening and provided authorities with journal entries, texts, and photos as evidence. She has since reported the incident to law enforcement and stands with the other accusers.

Swalwell has denied all allegations. 

The incident comes on the heels of new evidence that Swalwell admitted to having sex with a suspected Chinese spy, who the FBI assessed was likely operating on behalf of China's Ministry of State Security.

Memos describe Christine Fang, known as Fang Fang (FBI codename 'Rusty Thumbs') cultivating Swalwell through sexual encounters, intern referrals into his congressional offices, and campaign contributions routed through American conduits to conceal her status as a prohibited foreign national. Investigators cleared Swalwell of criminal wrongdoing in 2017. Fang was never charged. 

During FBI interviews in 2015 and 2016, Swalwell acknowledged meeting Fang during his initial 2012 congressional campaign and admitted to multiple sexual encounters with her. He confirmed that Fang referred several interns to his campaign and congressional offices, explaining that he treated her referrals as coming from the Asian Pacific Islander American Public Affairs (APAPA) organization.

Tyler Durden Thu, 08/20/2026 - 10:25

North Korea Fires Barrage Of Missiles As Kim Plays Hard To Get, After Trump Overture

The South Korean government has observed an alarming new launch of a missile barrage by North Korea on Thursday, announcing that an unidentified projectile was fired off the peninsula's east coast on Thursday.

"The Joint Chiefs of Staff said the launches of about 10 short-range ballistic missiles happened from North Korea’s capital region around 5 p.m. (0800 GMT) on Thursday," the Associated Press details. "The military said the missiles flew about 300 kilometers (185 miles) each toward North Korea’s eastern waters."

via Reuters

"The military said South Korea has bolstered its surveillance posture and was closely coordinating information on the launches with the U.S. and Japan," AP adds based on the statement. "South Korea’s presidential national security council issued a statement urging North Korea to halt ballistic missile launches."

The new test is obviously meant to send a strong message, given it follows Pyongyang's dismissal of President Trump's decision to scale back US military exercises with South Korea this week.

Without doubt, Kim Jong-Un is welcoming the sudden attention from Trump, but if there's hope of rekindling the 'bromance' - this is basically Kim playing hard to get.

North Korea's stance is that simply scaling back the exercises doesn't make them any less provocative and less of a threat to its national security.

The North Korean strongman's influential sister has weighed in: "We think it’s not worth making comments on that and we have no interest in it at all," she said, as cited in state media. "The provocative, aggressive nature of the drills won’t change even though their duration and size were reduced," she added.

President Trump has been questioned by reporters on if there is currently an exchange of letters or any level of dialogue between Pyongyang and Washington. 

Kim Yo Jong as part of her statement denied that there's any communication: "If the U.S. calculates that it can propagate its recent measure as the one of so-called good faith, they will not get the desired answer," she also said.

However, there was this key caveat and positive remark in passing:

Kim Yo Jong's statement did not contain North Korea’s typically harsh rhetoric. She briefly said relations between her brother and Trump are "still excellent," mentioning her brother’s past comments that he still has "good memories" of Trump.

So there it is... Kim is playing hard to get while recalling all the fond memories. 

As for the White House, it probably needs a new distraction on the foreign policy front, given how much the Iran war has turned against Washington's favor. If another face-to-face Trump-Kim meeting actually materialized down the line, it would certainly take over the headlines, at least temporarily.

Q: You said North Korea has 57 nuclear weapons, is your goal denuclearization?

Trump: I don't want to talk about that but I have a good relationship with Kim Jong Un. I like him. I didn't like doing these exercises against North Korea pic.twitter.com/9q74leMwpZ

— Headquarters (@HQNewsNow) August 19, 2026

On Kim, Trump said this week: "The fact that I get along with him, that’s a good thing." He explained: "You can’t let Iran have a nuclear weapon. And I know Kim Jong Un very well, and he’s going to be fine as long as we have a smart president."

Suddenly everyone gains immediate respect when they achieve nukes - even the 'rogue' actors - which is something Tehran has no doubt long observed.

Tyler Durden Thu, 08/20/2026 - 10:15

Walmart Crashes Most Since 2022 After Huge Comp Store Sales Miss

Walmart is tumbling after posting disappointing guidance while quarterly sales fell short of expectations, a rare miss for the world's largest bricks and mortar retailer, that is stoking concerns about the leading big-box retailer decelerating alongside a slow-growing US economy.

Comp store sales at US stores open at least a year, excluding fuel, rose 2.6% in the second quarter, far below the lowest analyst estimate compiled by Bloomberg.

That growth rate, which reflected "125 bps headwind from pharmacy deflation and brand-to-generic transfers related to maximum fair price regulation", was the slowest in more than six years. Another interesting observation: WMT is seeing less of a hit from the lack of fatties, saying that "FY27 comps reflect ~50 bps tailwind from GLP-1, vs. ~100 bps in FY25 & FY26, as script  growth was more than offset by price-mix headwinds."

Here are some other highlights from the fiscal second quarter:

• Adjusted EPS 81c, beating estimates 74c, excludes the impact, net of tax, from a net loss of $0.12 on equity and other investments, and net benefit of $0.11 from a certain tax matter
• Revenue $187.94 billion, +5.9% y/y, beating estimates of $186.87 billion
• Walmart-only US stores comparable sales ex-gas +2.6%, missing estimates of +3.67%
• Sam’s Club US comparable sales ex-gas +4.4%, beating estimates of +4.04%
• Operating cash flow $19.7 billion 
• Global eCommerce sales grew 23% 
• Membership fee revenue grew 17% globally 
• Gross profit rate up 96 bps, led by Walmart U.S., primarily impacted by tariff refund impacts 
• Free cash flow decreased $1.4 billion due an increase of $2.8 billion in capital expenditures to support our omnichannel growth strategy, partially offset by the increase in operating cash flow 
• Share repurchases during the quarter totaled $3.0 billion representing 25.7 million shares, at an average price of $117.61 per share

The company's guidance was also messy for both Q3 and full year, both missing consensus estimates. 

Third quarter forecast: 

• Sees adjusted EPS 62c to 64c, missing estimates of 68c
• Sees net sales in constant currency +3% to +3.75%
• Sees operating income in constant currency up 2%-4%

2027 full-year forecast 

• Sees adjusted EPS $2.80 to $2.87, saw $2.75 to $2.85, missing estimates of $2.90 
• Sees net sales in constant currency +4% to +5%
• Sees adj. operating income in constant currency up 6%-8%

According to Bloomberg, the results signal it’s getting more challenging for the world’s largest retailer to maintain a faster growth rate as expectations from investors have risen. The earnings report also may spark anxiety about uneven economic signals and deteriorating consumer sentiment.

Federal drug price negotiations affected Walmart’s health and wellness (H&W) business more than expected, CFO John David Rainey said in an interview. While “transitory,” the issue is expected to persist into the next year, he said.

WalMart was quick to point out that wxcluding health and wellness, the company’s US comparable sales rose 3.4%, and noted that FY27 YTD total comp reflected a "net ~200 bps swing on average vs. the trailing two year pace due to Health and Wellness impacts noted above"...

... but the market didn't seem to care much and punished the company the most in almost 5 years.

Additionally, Walmart gained market share, including in grocery as it continued to lower prices of goods. As consumers face more pressure, Walmart has been “very intentional” with where it’s investing in price, Rainey said, pointing to beef as an example. Still, the retail environment remains competitive.

Shoppers have maintained spending at consistent levels in recent months despite ongoing concerns about inflation and geopolitical tensions. While many consumers are increasingly selective about their expenditures, they’re still on the lookout for good deals or unique products. At the same time, lower-income households have pulled back amid elevated gasoline prices. Consumer sentiment also dropped for the first time in three months in August, while the labor market is showing signs of weakness.

Consumer spending has been consistent as households remain resilient, according to Rainey.

“We certainly see that choices are made,” he said. “That’s indicative of some of the trade-offs that consumers are needing to make, and they’re looking for value and convenience.” Back-to-college season was “exceedingly strong,” and the return to school season is in its early days as some schools start later this year.

Additionally, recent foodborne illnesses have weighed on demand for some items like packaged lettuce and strawberries, though the company expects that to improve in the coming months, Rainey said.

Walmart, a longtime favorite of bargain-searching shoppers, has expanded its online offerings in recent years and succeeded in attracting wealthier shoppers prioritizing convenience. The company’s non-retail businesses, which span from advertising to its third-place marketplace, also have boosted profit growth. In the years after a pandemic-fueled boom in business, the retailer has invested across operations to spruce up its stores, assortment of products and digital services.

Under Chief Executive Officer John Furner, the Bentonville, Arkansas-based retailer has sought to maintain its focus on value while making online deliveries faster and using artificial intelligence more effectively across operations.

Walmart shares had retreated in recent months, partly on concerns that the company’s US growth could decelerate. Comparable sales growth has now slowed for two straight quarters, and the retailer cautioned earlier this year that high fuel costs could squeeze earnings. Rivals including Target Corp. have seen sales pick up as its turnaround efforts gain traction. Kroger Co. and Costco Wholesale Corp. meanwhile are lowering food prices to grab more share.

Following the latest earnings, shares of Walmart, which until recently were idiotically trading at a 40x forward PE, crashed as much as 9% after the huge comp store sales miss, its biggest drop since July 2022 The stock had risen 2.6% this year through Wednesday’s close. 

Walmart's full Q2 presentation is below (pdf link)

Earnings Presentation (FY27 Q2) by Zerohedge

Tyler Durden Thu, 08/20/2026 - 10:03

The post $40 Trillion Debt, Oh My! appeared first on CEPR.

How Can This Be Real?

Authored by Steve Watson via Modernity News,

The Home Office in the United Kingdom is now handing asylum seekers a nine-page booklet and posters spelling out that rape is illegal, sex with children is a crime, women are equal to men, and you cannot mutilate girls' genitals.

Yes, really. This is how bad it's gotten.

Britain's borders have become so porous that the state feels obliged to tutor new arrivals in the most basic rules of civilised society.

If you have to publish these and send them out to 'Asylum seekers' perhaps they shouldn't even be considered for asylum. pic.twitter.com/GbnVlJE7w0

— m o d e r n i t y (@ModernityNews) August 19, 2026

Officials openly acknowledge that "laws and customs here may be different from your home country." The document, published this week, is the clearest admission yet that large numbers of those arriving do not share the fundamental values that keep women and children safe.

It's like reverse colonisation, bring the third world here and pretend you can modernise them in a few days.

It took decades and most of the developing world is exactly that, still developing.

The Home Office seems to believe a pdf file will change that.

Absolutely insane. https://t.co/VeIkFeqxyC

— Nick, 30 (@an0n_Nic) August 19, 2026

GB News presenter Martin Daubney reacted with visible shock: "It's very rare a story comes in that completely takes my breath away, but this is it."

'It's very rare a story comes in that completely takes my breath away, but this is it!'@MartinDaubney shares his outrage as migrants are issued a guide by the Home Office on how to avoid committing rape in Britain, and other guidance on harassment and paedophilia. pic.twitter.com/hhTRpmir1k

— GB News (@GBNEWS) August 19, 2026

The guide, titled Understanding Behaviours and Expectations in the UK: A Guide for Asylum Seekers, is available on the government website and is being distributed to new arrivals.

A section on sex and consent states: "In the UK, the law is clear and strict: both people must agree to sex or sexual contact of any kind."

It continues: "Never try to have sex with someone who is asleep, drunk, or unable to consent clearly."

Rape is described as a serious crime that can lead to prison, loss of support and accommodation, and damage to an asylum claim.

The booklet also states "The legal age of consent in the UK is 16. This means that anyone under the age of 16 is considered a child and cannot legally agree to have sex. Sex with someone under the age of 16 is a serious crime in the UK. There are no exceptions to this rule. Even if they say yes, it is still illegal."

There have been a few articles over the years about asylum seekers who loiter outside schools and photograph children.

The Home Office "Consequences of Behaviour" document given to asylum seekers advises them not to take photos or videos of people without consent. pic.twitter.com/M15WRraNai

— Charlie (@charliecolecc) August 19, 2026

Gender equality is explained in similarly elementary terms. Women "do not need permission from a husband, father, brother or any other man" to work, study, travel or make decisions. Domestic abuse is illegal. Public behaviour rules ban whistling, kissing noises, sexual comments "even if you think it is a compliment," following people or blocking their path.

?Breaking News....
Home Office are handing out leaflets to new arrivals explaining that its not ok to have sex with kids and in the uk men & women are equal. How are they going to know if theyve read the leaflets & actually understand. If these men are decent people then why... pic.twitter.com/JV6uUYCGS8

— ???? (@jomickane) August 19, 2026

'Perpetrators have tried to use ignorance as a way of getting off. This could be useful in subsequent legal cases...'

Political Consultant Kevin Craig reacts as the Home Office faces criticism for issuing migrants a guide on how to avoid committing sexual assault in Britain. pic.twitter.com/oKxUfgxNzM

— GB News (@GBNEWS) August 19, 2026

The UK Government is literally having to tell these savages you can't rape women when they're unconscious

WHY ARE WE LETTING THEM INTO OUR COUNTRY? pic.twitter.com/fzqhsjDDVz

— Basil the Great (@BasilTheGreat) August 19, 2026

Reform UK's Zia Yusuf called the publication a disgrace, saying the government had produced "a handy guide for illegal migrants on how not to be a rapist, not to be a paedophile, how not to beat women and how to leave babies alone."

The government is handing out guides to illegal migrants training them not to rape women, not to beat women, have sex with children or leave babies alone.

The political class are knowingly enabling the assault of our women and girls at your expense. pic.twitter.com/uwmjjhHDmT

— Zia Yusuf (@ZiaYusufUK) August 19, 2026

?BREAKING?

An excerpt from a guide being issued to illegal migrants in an attempt to tackle rampant sexual assaults and rapes on women and children in the UK.

The government are attempting to mitigate the rape epidemic with a brochure. pic.twitter.com/INEyrGqDSV

— Robbie (@Robbie_Reasons) August 19, 2026

Shadow Home Secretary Chris Philp said the priority should be deportation rather than "trying to train these mainly young, male illegal immigrants [to] behave in a civilised way towards women."

If the Home Office believes it is necessary to tell grown adults arriving in Britain that they must not sexually abuse children, rape women or mutilate girls, then I want to know why they believe those warnings are necessary in the first place https://t.co/xvyN5CTtEt

— Jess Caine (@jessalinecaine) August 19, 2026

Patrick Christys noted the obvious contradiction: the Home Office knows the risk is high enough to require explicit warnings about rape, child sex and genital mutilation, yet continues to place large numbers of these arrivals in communities across the country.

The Home Office knows illegal immigrants are so dangerous they have the tell them not to rape kids, beat up women of mutilate genitals. And yet they're about to plonk a load of them in rural villages. pic.twitter.com/jPHcZATxfw

— Patrick Christys (@PatrickChristys) August 19, 2026

Meanwhile, the welfare bill for foreign nationals keeps climbing. Almost 1.3 million migrants were claiming Universal Credit in May 2026, up around 20,000 on the previous year.

'It is shocking!'@DawnNeesom reacts to figures that confirm a record 1.6 million migrants are claiming Universal Credit. pic.twitter.com/IWQ9kdfezq

— GB News (@GBNEWS) August 19, 2026

Centre for Migration Control analysis shows the number of refugees on Universal Credit jumped 44 per cent in twelve months, from 90,709 to 130,618.

April 2022: 402,000 foreigners claiming Universal Credit who were not in any form of work.

April 2026: the figure has increased to 652,000.

1/4 of a million additional welfare dependants in just four years. And this is BEFORE the Boriswave settles.

— Centre for Migration Control (@migrationCtrl) August 18, 2026

ONS data suggests a further 623,000 are claiming other benefit combinations, bringing the total close to two million migrants on benefits.

1.3 million migrants on Universal Credit.

ONS data suggests a further 623,000 are claiming a non-UC benefit combination – although this is likely an undercount.

We have close to 2 million migrants claiming benefits in Britain. https://t.co/GcQ3fe6OKg

— Centre for Migration Control (@migrationCtrl) August 19, 2026

Rob Bates of the Centre for Migration Control pointed to the Channel crisis and the drive to clear the asylum backlog as key drivers of the refugee rise.

'The striking data point is the increase we're seeing in individuals classed as refugees, in large part because of the Channel crisis.'

Rob Bates of the Centre for Migration Control reacts as it is revealed almost 1.3 million migrants were claiming Universal Credit in May 2026. pic.twitter.com/7WFNdR9wH1

— GB News (@GBNEWS) August 19, 2026

Out-of-work foreign claimants have also increased sharply. Taxpayers are funding this at a time when the overall Universal Credit caseload has hit a record 8.4 million.

Separately, the Home Office is accelerating plans to reopen and expand Haslar Immigration Detention Centre on the Gosport seafront in Hampshire.

The site, closed a decade ago, is set to become one of Europe's largest, with capacity for 600 foreign criminals and illegal migrants.

Ministers have designated the project of "national importance" under the Crown Development process, taking decisions out of local hands.

Home Office 'scared of scrutiny' as it rushes through plan to build one of Europe's biggest immigration detention centres on seafront site https://t.co/ovfn5eH210

— Daily Mail (@DailyMail) August 18, 2026

Gosport Borough Council leader Zoe Huggins accused the government of fearing scrutiny and demanded an open process and a community liaison panel.

Local MP Dame Caroline Dinenage said the approach removes decision-making from residents and hands it to Whitehall.

The Home Office insists the expansion is necessary to remove more than 45,000 additional foreign offenders over the next decade and makes "no apology" for increasing detention capacity.

The pattern is consistent. Officials acknowledge cultural incompatibility serious enough to require explicit instructions against rape and child abuse.

They record hundreds of thousands more foreign claimants on benefits.

They expand detention capacity while still allowing large-scale arrivals.

Leaflets will not change the fundamental problem of who is being allowed in and allowed to stay.

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 Thu, 08/20/2026 - 08:45

Initial Jobless Claims Refuse To Blink Amid Increasingly Fragile Labor Market Signals

Unchanged from near 1969 lows for the last five years...

That's quite a statement amid the sound and fury of markets and macro over the same period, but sure enough, the number of Americans filing for unemployment benefits for the first time ticked up to 206k last week - the same level as they were back in 2001...

Michigan was the standout state with the largest decline in initial jobless claims by far while Kentucky saw the biggest increase (albeit only modest)

Continuing jobless claims remain below the 1.8 million Maginot Line...

Yet this resilience contrasts with clear deterioration elsewhere in the labor market and broader economy: nonfarm payroll growth has slowed sharply (July’s -23,000 print and downward revisions left the recent three-month average near just +20,000), the household survey has shown softer employment and a declining labor-force participation rate even as the unemployment rate edged down to 4.1%, job openings and hiring rates have cooled into a classic “low-hire, low-fire” equilibrium, and GDP growth itself decelerated to a 1.5% annualized pace in Q2 from 2.1% in Q1.

The divergence suggests firms are reluctant to shed workers but equally reluctant to expand headcount amid softening demand, leaving the labor market stable for now yet increasingly fragile if the broader slowdown intensifies.

Tyler Durden Thu, 08/20/2026 - 08:37

Futures Slide As Treasury Yields Surge, Erasing Bessent Intervention, Driven By Oil Spike

US futures slide and are trading at session lows, as bond yields surge after yesterday’s Treasury announcement, having now erased the entire post buyback-boost move; yields are 4-5bps higher as the curve bear steepens sharply with the 10Y yield now at 4.69%, above where it was before the Treasury's press release yesterday, driven by a surge in Brent above $94 after Trump vowed to unleash an "Economic D-Day" on Iran's economy.  As of 8:00am ET, S&P futures are down 0.2% and Nasdaq futures slide 0.3%. Pre-mkt, Memory / Semis are leading the Tech tape after a stronger APAC Tech session; Mag7 / Software are lagging. Cyclicals are seeing broad-based strength. Defensives are lagging with HC seeing profit-taking. Momentum continuing to unwind has triggered reversals lower from pre-mkt strength, over the past few sessions. This appears to be quant / systematic rather than discretionary players with Goldman pointing to the biggest systematic one-day loss since 2023. Retail activity remains muted. USD is mixed, erasing much of its earlier weakness as yields surge. Commodities are led by Energy as Brent moves towards $95/bbl, base metals outperform precious, with Ags are mixed. US economic data calendar includes weekly jobless claims, the Philadelphia Fed business outlook and leading index. Fed speakers scheduled for the session include, San Francisco Fed President Mary Daly and St. Louis Fed President Alberto Musalem.

In premarket trading Mag 7 stocks are mostly lower (Alphabet -0.3%, Amazon -0.3%, Apple -0.08%, Meta +0.4%, Microsoft 0.0%, Nvidia +0.2%, Tesla -0.7%)

• Cryptocurrency-linked stocks climb as Bitcoin’s rally unleashed the biggest wave of short liquidations in records going back to 2021. The stocks were also boosted as President Donald Trump met with crypto executives from firms including Coinbase, Payward and Blockchain.com.
• Advance Auto (AAP) tumbles 15% after the parts provider reported second-quarter sales that fell short of analyst estimates.
• Alibaba ADRs (BABA) fall 3% after the Chinese internet giant reported weaker-than-expected revenues for its core domestic e-commerce business
• Coty (COTY) falls 14% after the beauty conglomerate refrained from providing full-year guidance, predicting a “transition” period in the current fiscal year.
• Ethan Allen (ETD) rises 3% after the home furnishings company declared a special cash dividend of $3 a share.
• Nordson (NDSN) rises 5% after the maker of applicators used to dispense adhesives boosted its adjusted earnings per share guidance for the full year.
• Ultragenyx Pharmaceutical (RARE) rises 7% after the drugmaker received accelerated FDA approval for its gene therapy to treat a rare genetic metabolic disorder.
• Valvoline (VVV) climbs 1% after getting a new bull as Benchmark starts coverage of the operator of quick-oil-change stations with a buy rating, saying the stock is at an attractive entry point for investors.
• Walmart (WMT) falls 6% as quarterly sales fell short of expectations, a rare miss that’s likely to stoke concern about the leading big-box retailer decelerating alongside a slow-growing US economy.
• Webull (BULL) climbs 11% after the digital investment platform reported second-quarter results that beat expectations.
• Wolfspeed (WOLF) falls 8% after the semiconductor-device company’s fourth-quarter results were seen as disappointing.

In other corporate news India’s securities regulator banned a Mauritius-based unit of JPMorgan from its capital markets, the first enforcement action over alleged manipulation of the country’s new closing auction for stock price.  Apple’s camera-equipped AirPods remain on track for 2027, despite a leak from the company indicating that the product might arrive sooner. Starlink has reapplied to India’s space regulator for approval of its Gen 2 satellite constellation, which includes direct-to-device connectivity, ET reports.

Under the hood of quiet, low volume trading, there have been some significant thematic rotations. Perceived AI losers have rallied, high beta losers spiked, while high beta momentum have extended their historic collapse and are now just shy of their July lows. In fact, according to Goldman Prime, systematic funds just suffered their worst drop on Wednesday since 2023 as Nasdaq volatility remains very elevated, despite the apparent surface calm.

With so much focus on AI, traders will seek clues from Alibaba results. Headline first quarter revenue was at 268.95B Yuan, roughly matching consensus. The stock had run hard Into the print, considered among the best-placed Chinese AI developers to turn increasingly capable models into revenue, with Qwen’s near-frontier agentic performance at lower prices than leading US models.

 

Elsewhere, Brent rose for a fifth straight day, topping $94 a barrel after Trump announced a package of measures intended to smother Iran’s economy, dimming prospects for both an imminent breakthrough in the conflict between the US and Tehran and a normalization of crude flows from the Middle East. 

Traders are taking stock after Treasury Secretary Scott Bessent announced a surprise increase in long-term bond buybacks to stem a rise in yields that had taken them to a near two-decade high. When it comes to Bessent’s plan to increase buybacks of longer-dated debt, Vital Knowledge founder Adam Crisafulli says “the Treasury action is somewhat minor and insignificant compared to the powerful secular forces pushing yield higher,” and JPMorgan sees credibility risk from the actichion. And with many warning the plan may be a short-term fix given concerns about large fiscal deficits and oil-driven inflation, that has already been realized as yields rise above where they were before the intervention yesterday!

“If there’s a structural reason why bond yields are drifting higher, a bit of short-term intervention buys you a little bit of time, but doesn’t necessarily change the longer-term trajectory,” said Graham Secker, equity strategy head at Pictet Wealth Management.

Elevated yields have kept equity prices in check, with the S&P 500 down since Monday after hitting a record high last week. Chipmakers have been under pressure in recent days, paring this month’s rebound after a volatile July.

In politics, a group of Democratic lawmakers are urging Fed Chair Warsh to disclose any conversations he has had with Trump since taking over the central bank in May. The Trump administration is poised to reduce tariffs on automobiles imported from Canada to 15% from 25% as part of a broader deal that would see the US neighbor drop retaliatory trade measures. Meanwhile, Norway is bracing for more tariffs from the US after talks on trade in Washington.

In Europe, the Stoxx 600 was down 0.1% and on track for a seventh day of losses, its longest losing streak of 2026 as energy firms outperformed as Brent crude rose toward $94 a barrel. Here are the biggest movers Thursday:

• Novonesis shares climbed as much as 11%, the most since October 2015, after the Danish maker of industrial enzymes beat expectations in the second quarter and upgraded its guidance for the full year
• Sartorius rose as much as 6%, the most in six weeks, after the stock was upgraded to buy from neutral at UBS
• Sartorius Stedim Biotech climbed as much as 6.7%, the most in more than four months, after the stock was upgraded to buy from neutral at UBS, which cited a “positive setup into 2027”
• Michelin shares rose as much as 2.5% and Nokian Renkaat gains as much as 6.4% after JPMorgan upgraded both tire stocks, citing favorable earnings potential
• Ferrovial shares rose as much 4%, the most since April, after a consortium led by the infrastructure company was selected to deliver Tennessee’s I-24 Choice Lanes project in Nashville
• JD Sports declined as much as 16%, the most since November 2024, after sales fell in the second quarter and the sports apparel retailer lowered its full-year profit before tax forecast to account for underlying sales trends and the promotional market backdrop
• Steel stocks SSAB and Norsk Hydro traded lower while ArcelorMittal pushed higher as people familiar with the matter said a potential trade deal between the US and Canada could lower tariffs on certain Canadian exports of steel and aluminum to 25%
• Orkla fell as much as 7.6%, the most since May, after the Norwegian consumer goods firm reported its latest earnings
• Aryzta shares fell as much as 8.5% to the lowest since 2022 after UBS cuts the Swiss baker to sell, expecting the past year’s flattish volume growth to continue into and beyond 2026
• Trainline dropped a further 8.8% on Thursday, extending strong declines after Wednesday’s announcement of a UK competition watchdog investigation into so-called drip pricing, as JPMorgan cuts its price target to a new Street-low 
• Aegon shares fell as much as 4.5%, the worst drop since March, after the insurer released interim results

Asian stocks climbed, led by gains in South Korea, as a drop in global bond yields after the US signaled increased Treasury buybacks eased concerns over high borrowing costs. The MSCI Asia Pacific Index advanced 1.8%, led by SK Hynix and Samsung following buyback reports. Korea’s benchmark rallied 5.9% while Japan and Hong Kong also rose. The drop in yields has reignited the artificial-intelligence rally after higher cost concerns briefly interrupted the recent tech advance thanks to strong earnings. Fresh reports of new business growth added to the momentum. Samsung Electronics rallied more than 5% after MoneyToday reported the chip giant will announce a shareholder return program soon. Meanwhile Reuters also reported the firm plans to raise some prices, lifting Taiwanese memory chip peers. SK Hynix jumped 4% after the company unveiled plans later on Wednesday to buy back 40 trillion won ($29 billion) of shares and return more profits to investors.

With little on the calendar for the rest of the week and holiday-thinned volumes, traders are looking to Nvidia’s earnings next week for a fresh read on the state of the AI buildout. “People are waiting for either new information or the market signaling something,” Secker said. “When you see the Korean market going up 5% and then down 5% the next day, particularly for the hedge fund community that level of volatility is not encouraging confidence.”

Traders will also be keen to hear remarks from Federal Reserve Chairman Kevin Warsh at the annual Jackson Hole symposium next week. His lack of guidance on when or whether the central bank will adjust rates has added to uncertainty over the policy outlook. 

In FX, the dollar slide has continued with the credibility concerns triggered by yesterday’s buyback announcement flowing through to today’s trade and sending the Bloomberg Dollar Spot Index to its lowest level since mid-May, lifting EUR/USD onto a 1.17 handle. The pound headed for its highest level against the dollar since February, while the euro also gained ground.

In rates, treasuries are fading as higher oil prices push up US government yields by 4 to 5 basis points. In fact, yields have now erased almost all of yesterday's Treasury intervention. US 10-year yields trade around 4.70%, higher by 6bp on the day with bunds outperforming by 6bp and gilts up 3bp in the sector. A rally spurred by Wednesday’s Treasury buyback proposals has run out of steam just one day later, with the 30-year back to 5.24% erasing its entire 9bps drop from the prior session. Gilts are also on the defensive while Europe is mixed, with German bunds trading a touch firmer. Treasury auctions include a $8bn reopening of a 30-year TIPS sale. The WI 30-year around 2.98% is some 50bps above the February sale stop-out as the price of oil has risen ~40% over the period

In commodities, WTI futures higher by around 2.8%, adding to underperformance of Treasuries versus G10 rivals, rising to highest levels since July 24, as the US seeks to isolate Iran and its economy. Brent crude prices advanced for a fifth day above $94 a barrel, reaching the highest this month.  Precious metals are failing to capitalise on the softer dollar with spot gold and silver posting respective losses of 0.7% and 0.6%. Bitcoin has built on yesterday’s rally, up 4%. 

US economic data calendar includes weekly jobless claims, the Philadelphia Fed business outlook and leading index. Fed speakers scheduled for the session include, San Francisco Fed President Mary Daly and St. Louis Fed President Alberto Musalem

Market Snapshot

Top Overnight News

• The US’s national debt has hit a record $40tn as borrowing rises at a historic pace, fuelling investor concerns about the state of America’s public finances despite Donald Trump’s vow to bring spending under control. FT
• Scott Bessent’s shock Treasury intervention reverberated through markets, with analysts warning his plan risks being a short-term “circuit breaker” at best. Underscoring jitters, long end US yields edged higher. Bessent is emerging as the most interventionist Treasury chief in decades. BBG
• The US will begin what Donald Trump called “unprecedented” economic warfare against Iran after failing to reach a deal. He gave no details but also threatened to target Iran’s trading partners. Brent rose above $93. BBG
• The U.S. military has quietly established a shipping corridor in and out of the Strait of Hormuz to transport millions of barrels of oil each day — a notable success even as the broader war remains at a stalemate. Axios
• In the battle for global technological mastery being fought in the labs of AI companies, China is rapidly closing the gap with the US. By several key metrics — usage and cost — it’s even taking the lead. BBG
• North Korea has fired a barrage of ballistic missiles, just hours after dismissing US President Donald Trump’s overture to reopen diplomatic contacts between Pyongyang and Washington. FT
• The U.S. and Canada are closing in on a trade deal in which Washington could cut some contentious tariff rates on Canadian-built cars and trucks, ‌and key metals, a source familiar with the matter said on Wednesday. RTRS
• Four Democratic senators have written to Kevin Warsh urging him to disclose any conversations he has had with Trump since becoming Fed chair, according to people familiar. BBG
• Japan’s exports expanded at the fastest pace since 2022 last month, rising 23.2% from a year earlier as a weaker yen and strong demand for chips and cars boosted shipments. BBG
• Mutual fund cash balances sit near historical lows. Following a brief increase around the start of the US-Iran war, mutual fund cash balances stood at 1.2% of assets at the end of June. Cash balances reached a low of 1.1% in December 2025. Goldman

A more detailed look at global markets courtesy of Newsquawk

APAC stocks were predominantly higher following a similar positive lead from Wall Street, where most of the major indices gained as yields and the dollar declined after the US Treasury doubled buybacks of long-term bonds. ASX 200 marginally gained with outperformance seen in miners and as participants digested a slew of earnings updates, although the upside is capped as financials lagged, and following disappointing jobs data. Nikkei 225 was underpinned by a rebound in tech, a pullback in yields and stronger-than-expected trade data. KOSPI led the advances in the region amid upside in the tech heavyweights, with SK Hynix shares up double digits following the announcement of a KRW 40tln share buyback, while there were reports that Samsung Electronics is planning to announce a shareholder return plan topping KRW 100tln. Hang Seng and Shanghai Comp conformed to the positive mood but with gains capped amid a deluge of earnings updates and as participants await Alibaba's earnings report, while the mainland is also contained after the PBoC kept its 7-day reverse repo operations at zero, and it maintained the benchmark Loan Prime Rates at their current levels for the 15th consecutive month.

Top Asian News

• Japan's METI reportedly plans to request around JPY 7.7tln for its FY27 budget, which is a significant boost from its FY26 allocation.

European bourses trade mixed, with underperformance in Germany's DAX 40 (-0.6%) while the majority of other indices are flat/slightly firmer. European sectors point to a mixed picture. Autos top the sector pile, with Construction and Utilities rounding out the top 3 performers. To the downside is Basic Resources, paring back some of Wednesday's gains. Telecoms and Travel & Leisure round out the sector laggards.

Top European News

• German PPI (Jul MM) 1.1% vs. Exp. 0.7% (Prev. -0.3%).
• German PPI (Jul YY) 3.0% vs. Exp. 2.7% (Prev. 1.8%).

FX

• Quiet action in FX after broad based USD weakness vs all peers on the surprise Treasury announcement yesterday, an update which led to significant curve flattening with the 30yr yield falling in excess of 10bps. Although the figure announced by the Treasury was modest, it shows Bessent’s commitment to keeping yields in check when above 5% in the long segment; alongside this, FOMC minutes encouraged some dovish action in shorter dated USTs. Yields will remain in focus and we have Fed speakers Daly and Musalem set to speak on business TV later today, likely to be asked on this topic. USD action is mixed against G10 peers, weaker vs. cyclicals, firmer/flat vs havens. DXY is modestly weaker after slipping below May’s support around 98.80, it is essentially no man's land below with 98.00 the likely next support.
• SEK weakness after the Riksbank announcement which, in short, was broadly as expected but failed to convince some market expectations of tightening later in the year (i.e. Danske expecting two hikes, JPMorgan seeing one). While keeping the door open to tightening later in the year, some dovish leads can also be interpreted from the mood of language on the economy, where the reiterated language comes despite a rebound in domestic GDP. EUR/SEK moved higher throughout the morning to a peak just below 11.06, +0.4% on the day.
• Action elsewhere is quiet. AUD is towards the bottom of the G10 pile despite the constructive risk environment; underperformance a function of disappointing jobs data in which headline Employment Change contracted and the Unemployment Rate rose. AUD/NZD fell in excess of 40 pips after the data, selling which was halted just under the 1.1950 mark, AUD/USD is flat despite a kneejerk lower after the data.

Fixed Income

• Fixed income benchmarks are lower/flat. Yields are firmer across the curve this morning, albeit only mildly so. This comes after the curve flattened in the prior session, following the US Treasury’s decision to double long-end buybacks, attempting to provide greater liquidity support. However, by all intents and purposes, markets have received the news as the Treasury being concerned about recent elevated yields. Some will also point towards the recent US-Japan cooperation on JPY intervention; whilst unlikely to be a main factor for the Treasury’s buy-back announcement, the timing is interesting.
• For now, yields are off recent peaks, but still remain towards multi-year highs. Fiscal concerns continue to remain the theme, with the US gross national debt now above the USD 40tln mark. The US30yr (5.22%) holds beyond the 5% mark, whilst the US10yr (4.66%) remains above the key 4.5% mark. ING opines that it is “unlikely” that the 10yr will fall below 4.5%, but believes it is “clear” that any move above 5% “or even the material threat thereof” would receive active resistance by the US Treasury.
• The key dates to watch are as follows: September 9th (the new doubled buyback goes into effect) and then November 4th (next QRA, where the current program window ends, and the Treasury will provide more updates on sizes/frequency).
• Bunds (+3 tick) and Gilts (-8 ticks) remain flat/lower, in what has been a quite domestic newsflow session for the respective regions. On a macro level, energy benchmarks continue to rise (Brent Oct’26 +2.5%), with the latest bout of geopolitical updates indicating a resurgence of hostilities in the Middle East (see commodities for details).
• France sells EUR 12.5bln vs exp. EUR 10.5-12.5bln 2.40% 2029, 2.70% 2031, 3.25% 2032 and 3.00% 2034 OAT.
• Japan sells JPY 532.1bln 20-year JGBs; b/c 3.98x (prev. 4.52), average yield 3.698% (prev. 3.626%), tail in price 0.17 (prev. 0.00).

Commodities

• WTI and Brent October futures are firmer intraday amid a slew of geopolitical updates, with the headline developments being Trump announcing economic measures and Iran threatening to withdraw from the NPT (details below). Modest downticks were seen after Al Arabiya reported that US President Trump "told his negotiating team that the chances of an agreement with Iran have become slim", with the downside possibly as traders take these reports with a pinch of salt, as it is highly unusual for local Arab media outlets to break major source reports directly from inside a US admin before domestic US media outlets. Since then, prices have resumed an upward trend, with Brent currently sitting near its session high in a USD 91.47-94.04 range (vs yesterday’s USD 92.81/bbl high) and WTI similarly towards the upper end of a USD 84.23-86.61/bbl band (vs yesterday’s USD 85.84/bbl peak). Dutch TTF futures post modest gains but remain above EUR 64/MWh after trading north of EUR 64.50/MWh in early trade and then finding support just under EUR 63.50/MWh.
• Metals are softer across the board despite the softer USD as the complex pulls back from yesterday’s US Treasury-induced gains whilst also feeling the weight of higher oil prices. Spot gold has fallen back under its 200 DMA (4,512/oz) to trade towards the bottom of a USD 4,478-4,524/oz range (vs yesterday’s 4,325-4,524/oz parameter). Spot silver resides towards the bottom of a USD 66.40-67.32/oz range. Elsewhere, 3M LME copper briefly tested USD 14k/t to the downside to trade in a current USD 13,980.68-14,083.00/t range.

Trade/Tariffs

• The US is reportedly set to cut the tariffs on imported Canadian autos to 15% from 25%, Bloomberg reported.

Central Banks

• The Riksbank maintained its rate at 1.75% as expected and assesses that the probability of a rate increase later this year remains. The Bank stated that the outlook for the economy remains largely unchanged but that if the unexpectedly high inflation during the summer were to be the start of a larger and more lasting upturn in inflation, the Riksbank would adjust its monetary policy in a tighter direction.
• In the post-policy press conference, Riksbank's Thedeen said they are somewhat concerned about the recent inflation outcomes and that the economy is showing signs of strength.

Geopolitics: Middle East

• US President Trump posted "No one has given the Islamic Republic of Iran a greater opportunity to make a Deal than me. TRAGICALLY, for them, they have failed to take it. Therefore, today, I am announcing the MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY! This will be Economic Warfare and Isolation on an unprecedented scale. Trump added that "ANY country that allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran will itself face TREMENDOUS Economic Consequences. Oil smuggling, swap lines, cash transfers, exchange houses, ship registries, front companies — It all needs to stop NOW. You know who you are. This will be an ECONOMIC D-DAY".
• US President Trump reportedly told his negotiating team that the chances of an agreement with Iran have become slim, according to Al Arabiya, citing sources. The source added that Trump ordered a freeze on negotiations with Iran for several weeks, with the possibility of extending them. Additionally, the report added that the US administration saw reports of an Iranian plan to resume attacks on ships and was briefed on information regarding a potential Houthi escalation in Bab al-Mandab and on an Iranian plan for operations that go beyond targeting ships. Trump informed his team of the possibility of launching massive attacks on Iran if economic pressure fails.
• Iranian Foreign Minister Araghchi said that insisting on failed policies will only lead to more failures and will lead to hostility from Iranians.
• Iranian Supreme Leader adviser Rezaei said the best response to Trump's escalation of economic warfare is to withdraw from the NPT.
• The US administration believes that the Iran-Oman discussions broke down weeks ago, according to Semafor citing an official source.
• Iranian Foreign Minister Araghchi held talks with Pakistan's Army Chief on regional developments, with the two sides discussing ongoing diplomatic initiatives, potential political solutions and ways to deepen consultation and cooperation.
• Yemeni sources reported that Houthis are preparing to enter a new phase of escalation against Saudi Arabia, according to Tasnim.
• Israeli warplanes attacked the Tal al-Dabsha area northwest of Ali al-Taher Hill in southern Lebanon, according to IRIB news.
• Turkish Defence Ministry said that they will continue to support Syria's efforts to develop their own military capability.

Geopolitics: Ukraine

• Russia attacked military facilities and a logistics hub in Kyiv and the region, while it also hit a drone component production facility in Kyiv, according to Russian press, quoting the Defence Ministry.
• Several explosions were heard in central Kyiv, Ukraine, according to witnesses. This was later confirmed by the Kyiv Mayor, stating the city is under attack from Russian ballistic missiles.
• Polish Armed Forces said the Polish military activated aircraft and air defences as Russia carried out strikes on Ukraine.

Geopolitics: Other

• Japan said North Korea fired what could be a ballistic missile, which was later announced by South Korea, stating that North Korea's military fired an unidentified projectile towards the east sea. The missile has landed outside of Japan's Exclusive Economic Zone

US Event Calendar

• 8:30 am: Aug Philadelphia Fed Business Outlook, est. 24.75, prior 41.4
• 8:30 am: Aug 15 Initial Jobless Claims, est. 210k, prior 209k
• 8:30 am: Aug 8 Continuing Claims, est. 1788k, prior 1777k
• 10:00 am: Jul Leading Index, est. 0.1%, prior -0.2%

Central Bank speakers 

• 8:30 am: Fed’s Daly Appears on Bloomberg TV
• 11:10 am: Fed’s Musalem on CNBC

DB's Henry Allen concludes the overnight wrap

Markets finally recovered again yesterday, with a big rally for long-end Treasuries after the US Treasury Department announced an increase in its buyback operations. The unexpected move dominated the market agenda, with 30yr Treasury yields (-9.2bps) posting their biggest decline since June, to close at 5.19%, with a further move lower overnight to 5.18%. But whilst the measures led to a pullback in long-dated yields, concerns about financial repression also meant that gold prices (+4.18%) had their biggest gain since March, whilst the dollar index (-0.83%) fell to a three-month low. So the announcement had big effects across multiple asset classes.

That announcement from the US Treasury said they were going to increase “by at least double”, the size of their buyback operations for longer-dated Treasuries. So that covers 10-20 year maturities, and 20-30 year ones too, taking the maximum size from $2bn per operation to at least $4bn. They said that would kick in from September 9 and be effective for the rest of this refunding quarter, which goes up to November 4. The news took investors by surprise as well, because it was just two weeks earlier that the Treasury had released their tentative buyback schedule for the upcoming quarter as part of their regular refunding announcement.

Admittedly, the increase in buybacks isn’t a particularly big amount relative to the number of outstanding Treasuries. But it offers a signal that officials are willing to support the long end, not least after the 30yr Treasury yield closed at a post-2007 high of 5.31% on Monday. So that led to a significant flattening of the yield curve yesterday, with the 2s30s slope (-8.5bps) also seeing its biggest daily decline in the last couple of months.

Elsewhere, the announcement also led to a sharp weakening in the US dollar, which fell against every other G10 currency yesterday. Deutsche Bank’s George Saravelos published a note yesterday (link here), in which he argued that the buyback represented a soft-form financial repression policy aimed at containing the long-end of the US yield curve, and this was negative for the dollar. His case is that if the market price of US Treasuries isn’t “allowed” to adjust lower, then the foreign exchange price of Treasuries owned by foreign investors has to adjust via a weaker dollar. He also points out the parallels with the Fed’s Operation Twist of the early 2010s, back when the FOMC sold short-term securities to purchase longer-dated Treasuries, in order to lower long-term rates.

Speaking of the FOMC, the minutes of the July meeting were also released yesterday. They said that “many participants assessed that policy tightening would likely be necessary if inflation did not decline”. So that confirmed a hawkish bias, but the wording “many” is typically used for a group that is shy of a majority, so it fell short of an imminent hiking signal. As a result, investors dialled back the likelihood of a September rate hike, with market pricing falling from 35% to 32% over the session. And looking further out, the number of hikes priced by December fell -1.5bps on the day to 22bps, its lowest since Warsh’s first FOMC meeting in June, which was unexpectedly hawkish. Overall, that left 2yr yields -0.8bps lower on the day at 4.16%, having been as high as 4.20% just before the minutes’ release. Still, given the US Treasury buyback announcement, the rally was much bigger at the long-end, with 10yr yields down -5.7bps to 4.65%.

As all that was happening, there were few signs that broader inflationary pressures are disappearing either. Indeed, yesterday saw Brent crude oil (+0.66%) post a 4th consecutive gain to close at $91.62/bbl, and overnight there’s been a further +0.37% increase to $91.96/bbl. That comes as President Trump posted overnight that he was announcing the “MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY!”, which he said would be “Economic Warfare and Isolation on an unprecedented scale.” In addition, he said that “ANY country that allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran will itself face TREMENDOUS Economic Consequences.” Otherwise, there’s still no sign of any talks between the US and Iran, and when Trump was asked whether talks would resume, he said “maybe at some point”. Meanwhile, the ongoing blockage of the Strait of Hormuz meant investors priced in more inflation as well, with the 1yr US inflation swap (+3.6bps) and the 1yr Euro inflation swap (+0.5bps) both moving higher yesterday.

For equities, the last 24 hours have seen a relatively better performance, with the S&P 500 (+0.21%) finally ending a run of 3 consecutive declines. That was primarily driven by the sharp decline in long-end yields, and S&P 500 futures saw a clear move higher following the US Treasury’s announcement. On top of that, there were huge gains for Moderna (+176.97%) and Merck & Co. (+12.60%) after they announced successful trial results for a skin cancer vaccine, which led the S&P 500 healthcare sector (+3.52%) to its best day since April 2025. In fact, US equities would have seen an even stronger performance were it not for a fresh decline in chip stocks, with the Philly semiconductor index (-2.12%) losing ground again.

That positivity has also been clear overnight, with S&P 500 futures up another +0.17%, whilst the major indices in Asia have also moved higher. That includes a sharp bounceback for the KOSPI (+6.25%), alongside gains for the Nikkei (+1.18%), the Hang Seng (+1.14%), the Shanghai Comp (+0.28%) and the CSI 300 (+0.21%). Moreover, we’ve seen fresh gains for bond markets, with Japan’s 10yr yield coming down -4.8bps this morning, whilst Australia’s is down -5.3bps.

Earlier in Europe, markets didn’t do as well as their US counterparts, as they didn’t directly benefit as much from the US Treasury announcement, and were more exposed to the latest gain in energy prices. So equities struggled, and the STOXX 600 (-0.11%) posted a 6th consecutive decline for the first time since 2023. Meanwhile for bonds, there were fresh multi-year highs for several yields. For instance, the German 5yr yield (+1.2bps) hit a post-2008 high of 2.99%, with France’s 5yr yield (+0.5bps) also at a post-2008 high of 3.51%. The 10yr horizon was more mixed however, with the 10yr bund yield (+0.2bps) inching up to a post-2011 high of 3.26%, whilst yields on 10yr OATs (-0.5bps) and BTPs (-1.7bps) came down a bit.

In trade news, the US and Canada are continuing to work towards a deal after the US postponed their tariffs by 3 days. Bloomberg reported that it would see US tariffs on Canadian autos fall from 25% to 15%, with steel and aluminium tariffs falling from 50% to 25%. However, the report also said the details were yet to be finalised.

Finally, there was very little data yesterday, but we did get the UK CPI print for July. That showed headline CPI rising to +2.9% as expected, whilst core CPI remained at +2.6% (vs. +2.5% expected).

Looking at the day ahead, data releases include German PPI for July, the US weekly initial jobless claims, and the Philadelphia Fed’s manufacturing business outlook survey for August. Central bank speakers include the Fed’s Musalem and the ECB’s Sleijpen. And today’s earnings releases include Walmart.

Tyler Durden Thu, 08/20/2026 - 08:29

Comey's '86 47' Post Could Objectively Be Read As Threat Against Trump, DOJ Argues

Authored by Matthew Vadum via The Epoch Times,

The U.S. Department of Justice (DOJ) defended the ongoing prosecution of former FBI Director James Comey in a new court filing on Aug. 18, saying “an objective viewer” could interpret his social media post as threatening the president.

The DOJ has denied that Comey is being prosecuted for his political views and said in the new filing that “there is no serious dispute” that a post of seashells arranged to read “86 47” that he made last year could be understood as a threat against President Donald Trump.

Comey is charged with two federal felony counts of threatening the life of the president and transmitting a threat.

Comey was charged after he posted a photograph on Instagram in May 2025 showing seashells arranged to read “86 47.”

To “86” is to remove or get rid of someone, and the term has been used in some contexts as a euphemism for killing someone.

The number 47 has been interpreted to refer to Trump, who is the 47th president.

Comey said he found the seashells arranged on a beach and snapped a photo of them.

He said he assumed the shells were intended as a political message and that he was making a political statement in opposition to Trump when he posted online.

Comey subsequently deleted the post, saying he did not know at the time that “86” was associated with violence.

Comey filed multiple motions challenging the indictment on various legal grounds, arguing in one that this is an example of a vindictive and selective prosecution.

He also filed a motion demanding access to grand jury materials and to suppress evidence.

A vindictive prosecution is a due process violation that takes place when prosecutors file or escalate criminal charges against a defendant primarily to punish or retaliate against them for exercising a legal or constitutional right.

A selective prosecution claim alleges a violation of equal protection principles when the government charges a person based on protected characteristics such as race, religion, or the exercise of First Amendment rights.

Prosecutors said in a new filing that the Instagram post was part of an effort they allege was calculated to generate publicity for Comey’s novel about a social media personality whose words inspire his fans to attack his foes.

The novel, “FDR Drive,” has been described as a work in which a federal prosecutor is “trying to take down Samuel Buchanan, a far-right media personality with a popular podcast,” according to the filing.

“There is no serious dispute that an objective viewer of Comey’s post could read it to mean ‘Kill President Trump,’” the DOJ said in the brief.

U.S. Attorney W. Ellis Boyle said in a separate affidavit that he was not pressured to charge Comey and relied on his own independent judgment when deciding to move forward with the indictment.

He said the grand jury approved the indictment on April 28 and that he “had no communication with [then-Acting Attorney General Todd Blanche] about this case until the day before the grand jury returned a true bill indicting Defendant, notifying him of the potential that a grand jury might indict Defendant as required by the Justice Manual.”

“My involvement in matters concerning Defendant James Comey is limited to this prosecution. I was not involved in the investigation or prosecution of Defendant in the Eastern District of Virginia. Neither was any member of the current prosecution team,” Boyle added.

The court has ordered Comey’s legal team to reply to the government’s filings by Sept. 1.

If U.S. District Judge Louise W. Flanagan allows the case to proceed, Comey is expected to be arraigned on Sept. 30, with a trial to begin on Oct. 21.

Tyler Durden Thu, 08/20/2026 - 08:05

Unitree Founder Sees Humanoids Going "Mass Market" Within Decade As IPO Rally Fades

Lower US long-end yields, a softer dollar, and SK Hynix's share buyback announcement stabilized sentiment across Asian markets. However, shares of Chinese humanoid robot maker Unitree erased some of those massive 460% gains following Wednesday's blockbuster debut. 

Risk appetite was also tempered after President Trump declared "Economic D-Day" against Iran and threatened severe consequences for any country providing support to Tehran. Against that backdrop, investors may continue rotating toward safer (see here), higher-quality companies with limited exposure to geopolitical and macroeconomic shocks.

Turning to the world's top humanoid robot maker by global deliveries, founder Wang Xingxing told the World Robot Conference in Beijing that mass-market adoption of these robots will be achieved within the next decade. That timeline is broadly in line with the forecasts we have provided readers from multiple institutional desks.

Wang said demand is likely to accelerate once robots can complete 80% of tasks assigned through voice commands in unfamiliar surroundings. He expects that threshold to be reached within two to 10 years.

The founder said humanoids already perform well under controlled conditions, but their performance deteriorates when objects or surroundings shift even slightly. He noted that this lack of versatility leaves current models trailing human workers.

According to Unitree's IPO prospectus, one of the company's major priorities is advancing the "humanoid brain," or embodied AI. About half of the IPO proceeds will be invested in improving the intelligence of its models.

Unitree shares in Shanghai closed down nearly 19% on Thursday after surging 460% on Wednesday. The IPO was 5,550 times oversubscribed as retail demand went through the roof.

Bloomberg Intelligence analyst Ian Ma said, "Unitree's debut surge signals strong appetite for China's embodied AI sector," adding that the IPO proceeds should accelerate product development and commercialization.

Unitree's IPO sucked liquidity out of other robotics stocks tracked by the Solactive China Humanoid Robotics Index (Bloomberg ticker: SOLCHRBP Index). The index fell 2.5% on Thursday and is down more than 27% on the year.

Related:

• China Dominates The Humanoid Robot Race. Can Trump Close The Gap?

Smart Analytics Global said global humanoid shipments tripled to 19,100 units in the first half from 5,100 a year earlier. The research firm expects deliveries to reach roughly 60,000 this year and climb to 500,000 by 2030.

The estimates are similar to those from major institutional research desks, including UBS, whose most bullish forecast projects nearly 400,000 global deliveries by the end of the decade.

Via UBS.

Our latest notes dissecting the humanoid robot value chain and examining how to profit from the key companies that manufacture critical components, such as motors and actuators, show that many of these companies are based in Asia, more specifically in China.

Read: 

• Physical AI Faces One Critical Chokepoint, And Here's How To Profit
• Digging Deeper Inside Physical AI's Hardware Stack Powering Humanoids

The short answer to whether Trump can close the gap with China in the humanoid race is difficult, given that the US lacks robust supply chains for motors, actuators, and other critical components, and building those supply chains could take years.

Tyler Durden Thu, 08/20/2026 - 07:45

The 'Pindia Challenge': A Stark Warning To The West

Authored by Steve Watson via Modernity News,

A viral game on Google Maps has laid bare one of the most glaring cultural realities of the modern world.

Drop a Street View pin anywhere in India and try to find a spot free of garbage, rubble, plastic waste or worse. The "Pindia Challenge" has taken off precisely because it is almost impossible to win. Mountains of trash, rivers of sludge, and streets buried under filth appear with depressing consistency.

But what was once dismissed as a problem isolated to 'over there' is now increasingly visible on Western doorsteps through mass migration, turning once-tidy, well maintained neighbourhoods into open-air dumps.

The 'Pindia challenge' is a game on Google Maps where you drop a street view anywhere in India. The goal is to find an area completely free of trash or rubble.

It's almost impossible to win on the first try. pic.twitter.com/UFvRt7kfs7

— Memes (@Basedgoymemes) August 14, 2026

The challenge itself is simple and brutal. Players zoom into random Indian locations on Google Maps Street View and screenshot the result. Trash piles, discarded packaging, construction rubble and human waste dominate the frames.

Participants report failure after failure, even in mountainous areas where refuse somehow still appears.

pic.twitter.com/lDWCfvYA74

— Google Maps Fuera De Contexto (@OOCMaps) August 17, 2026

Die "Pindia-Challenge" ist ein Spiel auf Google Maps, bei dem man die Straßenansicht irgendwo in Indien abwirft. Das Ziel ist es, ein Gebiet zu finden, das völlig frei von Müll oder Schutt ist.

Es ist fast unmöglich, beim ersten Versuch zu gewinnen.

Das ist mein Versuch. Da... pic.twitter.com/Ae8wRMvr7M

— realDonHulio (@DonHulio__) August 14, 2026

Anyone want to play a game of Pindia?
Just drop a street view pin anywhere in India, then screenshot the garbage and feces.
Third photo is up in the mountains, they even figured out how to throw trash there. pic.twitter.com/VkOFoYwYcx

— Great Bawls O' Microplastics (@HumamAnamoly) August 12, 2026

Decided to play a game of Pindia.

Been months since my last try.

Using google maps, go to India and zoom in to a completely random spot until you find a street. Drop the pin and open the street view. If you see trash, you lost the game.

I lost. Didnt even need to pan the cam pic.twitter.com/EUEJh5iQso

— badgers_ghost (@Badgers_ghost) August 18, 2026

If you go to Google Maps, select Street View, and drop it literally anywhere in India, you will find piles of trash everywhere.

I have done this dozens of times with friends. It has not once failed me.

I just did it again a few seconds ago and it came up with this. https://t.co/LGOdjtVwdN pic.twitter.com/vtPDeLzFuw

— Christian Heiens ? (@ChristianHeiens) November 18, 2025

We've all seen the endless videos of India's urban waterways choked with plastic bottles, flip-flops and debris.

India. The dense mix of plastic bottles, flip-flops and other debris in an urban waterway, along with the scavenger's appearance and footwear, matches common scenes from Indian canals and nullahs.

— Grok (@grok) August 15, 2026

The scale is staggering. A 20-storey trash mountain near New Delhi features its own black sludge rivers formed from the liquid seeping out of the waste.

This is the 20 story high trash mountain near New Delhi, India.
It even has black sludge rivers of its own from the trash liquid.
India is the dirtiest country on earth.
The entire country of India still doesn't have waste management in 2026. pic.twitter.com/DOQWl3JJ0R

— Manju Asura (@mandate2049) July 31, 2026

The country still lacks comprehensive waste management systems in 2026. Videos show entire landscapes transformed into dumping grounds, including remote Himalayan areas where refuse has somehow been deposited.

India is the ultimate trash country.
Indians trash everywhere.
They even trash the Himalayas. pic.twitter.com/zVOxXgdnFq

— Manju Asura (@mandate2049) June 1, 2026

India ranks among the world's top plastic polluters. Around 35 percent of its waste is properly treated; the rest is dumped in open landfills and streets.

This is India, soon to be Texas

India is one of the worst places on earth for cleanliness and trash

– India is the world's top plastic polluter
– Around 35% of India's waste is properly treated, the rest dumped in open landfills and streets
– India is among the highest sources... pic.twitter.com/7qRQhM0OxO

— Wall Street Apes (@WallStreetApes) May 28, 2026

The Ganges alone carries hundreds of tons of plastic daily. Overflowing dumpsites, including Delhi's Ghazipur landfill rising more than 200 feet, have become landmarks of failure.

The rivers of trash in India really put into perspective how pointless it is to do things like banning plastic straws in Western Nations

If Western Countries are forced to follow all these insane environmentalist policies, other nations should also be forced to follow them or... pic.twitter.com/DPNqoHPKLr

— Wall Street Apes (@WallStreetApes) June 28, 2026

Western nations ban plastic straws and impose elaborate environmental rules while these rivers of refuse continue unchecked. The contrast is stark and reveals the futility of one-sided restrictions.

Indians are big mad at me for that poop mudslide post yesterday but I'd just like to make sure everyone knows India isn't all about poop.

It's about trash too.

It's that real Mumbai spirit! ?? pic.twitter.com/VFmnV96GD1

— Klara (@klara_sjo) July 14, 2026

However, this is not an abstract overseas problem. The same habits travel with the people. Videos from Canada, Australia, the United States and the United Kingdom reveal Indian migrants dumping couches, bags of rubbish, and household waste along roadsides, into ditches, rivers and parks.

Every day, I see videos on social media of Indians dumping trash all over Canada & USA.

One lady compiled a video of multiple Indian offenders dumping couches & bags of rubbish right on the side of the road, throwing trash in rivers, & ditches.

This is a cultural problem &... pic.twitter.com/LnaLSjrYiN

— Mrs B (@attackdogX) August 18, 2026

Endless clips show offenders tossing furniture and refuse in Western settings, treating pristine environments the same way many treat their home country.

Indians turn everywhere they go into a trash heap

Truly the most disgusting people on earth pic.twitter.com/8xHeNsff0d

— Clayton Walker (@Channel6ixNEWS) June 6, 2026

An Aussie woman catches an Indian man illegally dumping boxes of rubbish in her Melbourne neighbourhood in Melbourne & she chases him down the street.

This is a regular thing in Melbourne now.

There is dumped trash everywhere. Our communities used to be clean & well looked... pic.twitter.com/V9I1NpVF3f

— Lozzy B ??? (@TruthFairy131) June 12, 2026

Welcome to Canada...

It's wild how so many Indians export their street-trash culture to every Western country they move to. pic.twitter.com/lG0usAaXi4

— I Meme Therefore I Am ?? (@ImMeme0) August 16, 2026

A Canadian local forced a group to retrieve a dumped couch and take it to the proper landfill, calling it a lesson in basic standards.

Local man forces a group of Indians to pick up a couch they dumped off the side of a road in Canada and take it to the garbage dump.

"Call it a lesson in being Canadian"

Follow: @NoticerNews pic.twitter.com/0Q5iK0HsNK

— N News (@NoticerNews) June 27, 2026

A recent report from Juno News examined Canada's exploding illegal dumping crisis. In every case where dumpers could be identified on camera, the individuals were of Indian descent.

Brampton, Ontario, a city with one of the country's largest Indian populations, saw illegal dumping reports rise 163 percent between 2020 and 2024, from 2,117 incidents to 5,568. Surrey, British Columbia, another area with high concentrations of Indian immigrants, recorded thousands of clean-up sites in a single year.

Residents have begun confronting dumpers themselves and tracking identifying documents left in the trash. The pattern is consistent and undeniable.

The same story plays out across Britain.

The cultural refusal is clearest in the treatment of those who try to enforce basic standards. A litter enforcement officer in Dudley was racially abused and smashed over the head with a wooden pole hard enough to shatter it. Bodycam captured one offender screaming "Get the f*** off my property you white mother f*****" and threatening to take the officer's head off.

Once-clean British streets now resemble third-world dumping grounds, with black bags, discarded sofas, mattresses and commercial waste appearing regularly in areas of rapid demographic change.

This is north London, but it could be a Third World country in Africa or Asia. How bad can it get for us...? pic.twitter.com/nbZFOVO9PA

— Clean Up Britain (@cleanupbritain) July 11, 2026

Just look how brazen this bloke is...
He just doesn't care that he's polluting the country and committing a criminal offence. This sort of shameless and selfish attitude is what we're up against. pic.twitter.com/XHFRlVRkKw

— Clean Up Britain (@cleanupbritain) July 23, 2026

Once-clean British streets now look like a landfill that never got collected.
Fly-tipping, sofas in the road, black bags piled like mountains, tyres and mattresses dumped wherever they land.
This isn't "poverty".
It's imported standards meeting zero enforcement.
You can feel the... pic.twitter.com/GoRxuId8To

— Retard Radar (@FullRetardRadar) August 15, 2026

Exactly... This is happening all over Britain, every day.
It's beyond a national disgrace. @CamillaTominey pic.twitter.com/1c0QM2qP8I

— Clean Up Britain (@cleanupbritain) August 4, 2026

How dare they invade our beautiful country & treat it like some 3rd world shanty town

It's actually infuriating pic.twitter.com/gD5KF0XbGM

— Restore Liverpool ????????? (@RestoreLVP) August 4, 2026

The state of the Lozells ward in Birmingham is absolutely shameful but newly elected Councillor, Taj Uddin, thinks a few CCTV cameras are going to fix the problem.

The problem is in their own community, we already have laws.

They choose to ignore them and live in filth. pic.twitter.com/76v4hXShnV

— Kiera Diss (@KieraDiss) August 4, 2026

This is occupied Leicester.

Noticing a trend yet? https://t.co/c8V48k4NkT pic.twitter.com/XvvoHp9Gip

— Kiera Diss (@KieraDiss) August 4, 2026

It's not just people being dumped on the streets in Sparkhill, the rubbish is all over the place.

This is not just a packet or crisps or can, it's household waste and furniture.

A rotten way to live. https://t.co/MRwEpms8Ln pic.twitter.com/ID8HmYydoQ

— Kiera Diss (@KieraDiss) August 4, 2026

This video was shot this weekend in a field off a leafy lane in Herts. We'll be erecting a camera here, but too late to catch these criminals. This is commercial waste and we're lobbying for a minimum and automatic £20,000 fine for this crime. The risks must outweigh the... pic.twitter.com/n8XGbBY7tt

— Clean Up Britain (@cleanupbritain) August 1, 2026

Urban decay, mountains of rubbish, is now commonplace in zones that once maintained basic standards.

Or in zones 3-5 in London. Fly tipping pic.twitter.com/tDpZAAh2qw

— TotalSteveO (@TotalSteveO) July 23, 2026

pic.twitter.com/F3bzusWz1J

— TotalSteveO (@TotalSteveO) July 23, 2026

Western countries maintain weekly bin collections, legal tips and public bins. The services exist. The choice not to use them is deliberate. People do not magically abandon the habits of their origin countries upon crossing a border. They bring the culture with them. The result is the progressive transformation of tidy Western towns, parks and waterways into the same wastelands visible in the Pindia Challenge.

Mass immigration without assimilation does not produce enrichment. It produces eroded civic standards, selective enforcement and neighbourhoods that look as if no one is in charge.

The Pindia Challenge is more than an internet game. It is a mirror held up to a reality that open-borders policies have chosen to ignore. Import the people, import the trash. The streets of the West are already paying the price.

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Tyler Durden Thu, 08/20/2026 - 07:20

My morning reads:

• What Are Bond Markets Telling Us? Interest rates are up — but don’t panic: I have a message for future policymakers: Don’t let the usual suspects undermine your policy agenda by scaremongering about interest rates and government debt. I say future policymakers because in the United States there is no point in offering sensible advice to current management. Paul Krugman on the global rate surge — long-term government yields in many countries are back at levels not seen since the mid-2000s, before the financial crisis. He argues deficits are only part of the story. (Paul Krugman)

• The Ultrawealthy Tax Maneuver That’s Spooking Schwab and Fidelity: Two Wall Street heavyweights are passing up a chance to add billions in assets, a sign the booming tax-aware long/short strategy may be too good to be true — even for the 1%. (Bloomberg)

• Long TIPS Yield 3%. Time to Buy? Edward McQuarrie on the history of the last time real yields looked this good. In late 2008, TIPS yields rose past 3.0%, a juicy rate that lasted barely a month. By 2010, yields had fallen below 2.0%; by 2011, below 1.0%; and just before inflation exploded and the Fed tightened in 2021, the 5-year TIPS yield fell to -1.76%, and even the 30-year sported a negative yield. As we write this, long TIPS yields once again yield 3.0% and, as in 2008, these rates may not last long. That means: You snooze, you lose. The time to buy TIPS is now. (Advisor Perspectives)

• Elon Musk Broke the FAA — Palantir Is Picking Up the Pieces: On August 6 the Minneapolis air route control center lost radar and communications for two hours, disrupting more than 1,100 flights across a 330,000-square-mile, nine-state sector. Musk’s DOGE was supposed to rebuild the nation’s air traffic control system, but it ended up paving the way for Peter Thiel’s company to take over. (The Verge)

• Ordinary Abundance: Edward Bellamy once imagined that music on demand would be “the limit of human felicity.” A modern apartment is full of things that once drew the same kind of awe. Edward Bellamy once imagined that music on demand would be “the limit of human felicity.” A modern apartment is full of things that once drew the same kind of awe. (Ordinary Abundance)

• A.I. Detectors Are Supposed to Make Our Writing Better. It Might Be Doing the Opposite. If you’ve been avoiding the em dash and words like delve and tapestry, you’re not alone. If you’ve been avoiding the em dash and words like delve and tapestry, you’re not alone. (Slate) see also Anthropic’s ‘Watermark’ Text Adulteration in Claude Is a Perversion of Writing. They say “imperceptible” and “doesn’t change the meaning, quality, or readability”. Their words. Not almost imperceptible. Not slightly changes the meaning, quality, or readability. John Gruber on the announcement that all Claude models will begin watermarking everything they generate, text included, to comply with EU regulation — with no description offered of how it would actually work. (Daring Fireball)

• Americans are destroying license-plate cameras as surveillance backlash grows: The Washington Post on the Flock vandalism wave — the cameras coming down by bolt cutter and spray paint as the surveillance backlash turns kinetic. Flock cameras have been shot, spray-painted and cut down as how-to videos spread online. “People are fed up,” one suspect said. (Washington Post)

• Experts raise alarms over Census Bureau report Trump is touting on noncitizen voting. A highly unusual Census Bureau report that President Trump is using to reup dubious claims of widespread illegal voting by non-U.S. citizens has ties to a Trump-aligned think tank, NPR has learned. Work on the analysis was not conducted by career civil servants at the Census Bureau, and the team behind it included individuals affiliated with the America First Policy Institute, a think tank started by officials from Trump’s first administration, according to a Census Bureau employee who NPR has agreed not to name because they fear retaliation at work. NPR finds the highly unusual Census Bureau report behind the president’s claims has ties to a Trump-aligned think tank. (NPR)

• When Your Brain Is in Your Arm: Two-thirds of an octopus’s neurons live in its arms, each operating independently — including the one it uses to have sex.  (Wired)

• Every Madonna Interview That’s Ever Been Published in Interview: We unearthed from our archives every single moment we’ve ever spent with the music icon. Below, find the Queen of Pop in her own words, from 1985 to today. The full archive, 1985 to today, in her own words. Set aside three and a half hours. (Interview)

Video of the day: The Epic Story of Rice: Gods, Conquests, and a Food Trip Through History

Be sure to check out our Masters in Business next week with Alex Morris of TSOH Investment Research. He is the author of “Buffett and Munger Unscripted: Three Decades of Investment and Business Insights from the Berkshire Hathaway Annual Shareholder Meetings.” The book was named one of Amazon’s “Best Books of 2025.” To write it, he reviewed every Berkshire annual meeting from 1994 through 2024 — 100s of hours of video covering more than 1,700 shareholder questions over 31 years — after Berkshire released the meeting archives.

 

Sports inflation is getting out of hand. It would cost $800 to watch every professional LA basketball team from the comfort of your couch

Source: Bloomberg

Sign up for our reads-only mailing list here.

 

 

The post 10 Thursday AM Reads appeared first on The Big Picture.

The West African Pipeline Is Inherently Geopolitical

Authored by Andrew Korybko,

The West never does anything without some benefit to itself in mind.

The Economic Community Of West African States (ECOWAS) formally endorsed the offshore Nigerian-Moroccan Pipeline in late July. Construction on this $25 billion megaproject is expected to begin in 2028 and stretch over 4,000 kilometers along the West African coast for supplying the EU with 30 billion cubic meters (bcm) of gas a year. Nigeria’s enhanced importance for the EU will place this official BRICS partner more firmly under Western influence and the same goes for the ECOWAS bloc that it leads.

While the 30 bcm is only around one-fifth of what Russia used to supply to the EU during the heyday of their energy trade, it nevertheless helps fuel the bloc’s economy, and it’ll also presumably be cheaper than the LNG that it began to import at scale from the US since sanctioning Russia back in 2022. Closer EU-Nigerian ties will complement the increasingly close US-Nigerian ones under Trump 2.0, which could ultimately lead to them empowering Nigeria to become their regional enforcer by proxy.

Although it has yet to go through with the putative anti-terrorist invasion of Mali that its Defense Minister intimated in early May, which would likely be pursued for regime change purposes if it ever comes to pass, Nigeria can still play this role in the future with Western backing. If the Sahelian Alliance of which Mali is a part survives the present Syrian-like Hybrid War onslaught, then a Western-backed Nigerian war with the bloc can’t be ruled out, one in which other ECOWAS states might also participate.

BBC cited energy expert and former Nigerian government advisor Charles Majomi as assessing that “[the Nigerian-Moroccan Pipeline] signals a change from current models where gas is typically extracted from African nations, refined and processed abroad then shipped back to African nations at three or four times the price”. It would of course be a positive development for the other ECOWAS states to receive gas at a much cheaper price, but the West never does anything without some benefit to itself in mind.

In this case, bolstering their economies is intended to lead to them purchasing more military wares from the West, with the overall effect strengthening their armed forces with the goal of turning ECOWAS into a more powerful Nigerian-led military bloc. While Guinea and Togo might decline to participate in any campaign against the Sahelian Alliance due to their pragmatic ties with them and growing ones with Russia, the rest are expected to take part in this if it happens. They’re also already pro-Western too.

Putting it all together, the Nigerian-Moroccan Pipeline does indeed advance all of the involved countries’ economic interests, but it’s also inherently geopolitical too since the long-term objective is to solidify Western influence among the ECOWAS states that also happen to be strategically coastal ones too. The “Global West” concept is therefore expanding from its North Atlantic core to encompass not only the US’ Asia-Pacific allies, the Gulf, Israel, and Latin America, but also West Africa now too.

Candidly speaking, there isn’t anything that the Sino-Russo Entente can do to stop the Nigerian-Moroccan Pipeline, and any attempt to do so anyhow would be presented as trying to impede the West African states’ development to the detriment of those two’s soft power.

What they can do, however, is ramp up support for the Sahelian Alliance and do their best to woo Nigeria back towards their side in the New Cold War. That’s much easier said than done but isn’t impossible so they might soon give it a shot.

Tyler Durden Thu, 08/20/2026 - 03:30

Europe Scrambles For Innovation And Defense As US Decouples From "Global Order"

For decades the European elites have pretended as if US integration into the progressive agenda is an afterthought on the way to a liberal Utopia.  The EU has long criticized Americans as backwards in their principles and politics, while at the same time being desperately dependent on American consumers, American innovation and American military might.  They simply never considered the possibility that the US might walk away from the old post-war arrangements.

Well, now it's happening and the European establishment doesn't know what to do.

ECB chief and former head of the IMF, Christine Lagarde, took to the podium at the World Economic Forum’s International Business Council in Geneva, Switzerland this week to discuss the growing uncertainty in Europe.  

"Europe’s post-war growth model rested on three mutually reinforcing pillars. Today, all three are weakening as the international environment changes...."

"The third pillar was a stable, rules-based global order, underpinned by a US security umbrella. That environment allowed European supply chains to deepen, and enabled firms to organise investment around efficiency rather than resilience.  Today, that global order is under pressure. Geopolitical tensions are bringing critical dependencies and chokepoints into sharper focus, while Europe faces growing security threats on its doorstep..."

The WEF and its members have been suspiciously quiet in the past two years about their globalization projects.  The media coverage for the council meeting in Geneva has been thin.  It would seem, though, that the agenda so openly and enthusiastically promoted by the WEF during the Covid pandemic is not going as planned.

This event may be one of the clearest indications of the state of globalism since the failure of the pandemic coup and the return of the Trump Administration in 2025.  Largarde called for "better integration" across Europe for defense and more innovation, otherwise the region might miss out on the next digital revolution of AI. 

"In some respects, Europe is well placed to make the most of new technologies. We have a world-class research and knowledge base. The EU accounts for around 6% of the world’s population but as many as 15% of its researchers. It also produces almost one-fifth of the world’s most-cited scientific publications.

The challenge lies in turning that knowledge into commercial success and ensuring that new technologies diffuse across the economy. Too often, the barriers that prevent firms from scaling also hold back that diffusion..."

In other words, European governments are realizing that extensive bureaucratic barriers and overt taxation is crushing new businesses and preventing natural growth.  Better late than never...unless it's too late.  

Europe's economy is on a fast track to disaster.  An estimated 30-40 million migrants (legal and illegal) have entered the region in the past 10 years alone.  Most of these migrants come from third-world countries with no wealth, no skills and are largely dependent on European welfare systems in order to survive.  

Mass immigration has not led to the "explosion" in economic activity promised by multiculturalists.  In fact, the countries with the most migrants face increasing joblessness, housing shortages, inflation and a strangulation of taxpayer subsidies.  Meanwhile, as the US undergoes mass deportations of migrants, the economy is improving, including growth in GDP, manufacturing jobs and housing relief.  

National rental vacancy rates in the US climbed to around 7.2–7.3% by late 2025/early-mid 2026 (highest levels since 2017).  European vacancies are frozen at around 1%-3%.  The situation is dire.

The very globalists that created this mess are now complaining that, without US integration, they are about to sink into economic crisis.  This has inspired multiple European governments to dump funding into tech startups in a last-ditched effort to catch up to the US and China.  They are seeking to close their $1 trillion investment gap, but they plan to use taxpayer money to do it.  As Lagarde notes:

"Innovative European firms can often finance their early growth, but a gap tends to open as they scale. According to the European Investment Bank, EU and San Francisco-based scale-ups raise broadly similar amounts during their first five years of operations. But by the tenth year, EU scale-ups have raised roughly 50% less..."

"Fragmented capital markets can also incentivise young, innovative firms to vote with their feet. Some 12% of EU scale-ups have relocated outside the EU, most notably to the United State..."

It's unlikely that the EU plan for socialized funding and "capital market integration" will accomplish much without far more freedom and less taxes for entrepreneurs.  The elites pretend they want to revitalize economic growth but every new policy tends to cripple free markets with greater centralization. 

It is interesting, however, that these socialist and socialist-adjacent economies are struggling to function and survive the moment more free markets systems like the US walk away.  It's almost as if socialist systems are parasitic and require host organisms to feed off of, otherwise they begin to die. 

Tyler Durden Thu, 08/20/2026 - 02:45

British Liberals Cheer Migrant Camps In Villages... As Long As It's Not Their Villages

Authored by Steve Watson via Modernity News,

The same voices who demand "fairness" and insist every community must share the burden of mass illegal migration suddenly discover local democracy the moment the coaches might stop near their postcode.

A Mail on Sunday poll has laid bare the gap between principle and practice. Just 15 percent of people are happy with the idea of more illegal migrants arriving in their own area. Fifty-seven percent actively oppose it.

Yet many of those who back Prime Minister Andy Burnham's call for affluent and rural places to "play their part" draw a firm line at their own front door.

The liberal wokerati back Burnham's plan to house asylum seekers in affluent postcodes... as long as it's not theirs, MoS poll reveals https://t.co/TuelsWxBxH

— Daily Mail (@DailyMail) August 15, 2026

Burnham has been explicit. He told GB News that Britain "cannot have a situation where it's only the poorest communities in the country that receive all of the dispersal of refugees and asylum seekers." All parts of the country, he said, must work and play their part. The policy is framed as equity. The reality on the ground looks very different.

The survey of 10,549 adults, conducted by Find Out Now and weighted to be representative by age and gender, also reveals the classic liberal tension: 51 percent agree asylum seekers should be housed evenly across the country, yet that abstract support collapses the moment the coaches head toward their own postcode.

What unites almost everyone is the demand to stop the problem at source. Eighty-two percent believe the Government should do more to prevent illegal small-boat entries. Only 5 percent disagree.

The areas most hostile to further arrivals are Lincolnshire (57 percent opposed), followed by Worcestershire, Shropshire and County Durham. The most accepting is Wiltshire, with just 21 percent opposed, trailed by East Sussex, Merseyside and Nottinghamshire.

The Mail on Sunday poll confirms what many already suspected. Support for the abstract principle of dispersal collapses the moment the principle lands next door.

Liberals and progressives who spent years lecturing poorer communities about compassion and shared responsibility now discover the virtues of local opposition when the coaches point toward their own leafy postcodes. The villages, meanwhile, are left to live with the consequences.

Three former military sites have been earmarked for conversion into large-scale accommodation for single adult male asylum seekers. Two of them sit less than a mile from primary schools, in direct tension with the Home Office's own July guidance.

RAF Linton-on-Ouse in North Yorkshire, the base where Prince William once trained, is lined up for up to 1,200 men. The village itself numbers around 600 people. The arithmetic produces a six-to-one ratio of migrant men to local women. The site sits right beside a primary school, a nursery and a children's play area.

North Yorkshire councillor Malcolm Taylor put the local mood plainly: "It's quite an attractive site, it's not one of your austere former military sites and it's right in the heart of the village. So as a consequence, it's right adjacent to the school, the play park. That's what has really ramped up the concerns of the community."

At RAF Barnham near Thetford in Suffolk, plans for as many as 1,250 asylum seekers have already prompted some parents to talk about withdrawing their children from Barnham School.

John Bauer, chairman of the parish council, warned that the proximity could threaten the school's long-term future.

The third site, near the Oxfordshire village of Piddington, does not neighbour a school but sits beside a children's play area and backs onto village gardens. The village has roughly 350-400 residents. The proposed intake is 1,250 single men.

This is not an isolated experiment. It is the latest chapter in a pattern that has already played out across quiet corners of England and Wales.

The same week Burnham was insisting every area must take its share, residents of the tiny Welsh seaside village of Gronant discovered that their former village hall - converted into 15 new-build homes they expected to serve local families - had been quietly allocated to asylum seekers.

Thirteen of the fifteen units went to Home Office contractor Clearsprings. Blacked-out minibuses arrived without warning. Kerrie Cox watched one pull up while she washed her car. "Nobody was told about the arrivals," she said. Julie Tuson called it an "absolute betrayal." Ted Huthwaite said he was "absolutely gobsmacked... it is devastating for the community."

Borders minister Anna Turley has sought to reassure people by insisting the men will not be "in the village." "Everything they need will be on that site," she told LBC. In practice the sites are not locked facilities. Residents are free to come and go.

Infrastructure in these rural locations is already thin - limited bus services, strained water, sewage and electricity capacity. Policing is stretched. The cultural distance is vast.

High-trust, low-density English and Welsh villages with quiet streets, children's parks and a long-standing sense of safety are being asked to absorb large numbers of single adult men from very different backgrounds, many of whom do not speak English.

It repeatedly seems like an intentional choice calculated to produce the maximum friction and cultural upheaval. Officials could not possibly find settings more alien to the life experience of many of these arrivals. Quaint villages with medieval churches, village halls and play parks are the last places that resemble the environments many left behind.

The effect is predictable: local women and girls who once walked freely after dark now face a sudden demographic inversion. Parents weigh whether their children can still use the park. Communities that never asked for this feel ignored and overruled by Whitehall processes that bypass local planning authorities under the banner of "national interest."

The Home Office maintains it is seeking to house people fairly across the country, closing hotels and moving arrivals into alternative accommodation including former military sites. Asylum costs, it says, are down by £1 billion since the general election. The numbers receiving support are falling.

Yet the boats keep coming, the contractors keep being paid, and the map of acceptable destinations keeps expanding deeper into the countryside. Closing hotels while upgrading the destination does nothing to reduce the pull factor. It simply relocates the pressure onto the places least equipped to absorb it.

Reform's Zia Yusuf has been blunt about the Linton-on-Ouse proposal: "Andy Burnham is about to dump 1200 unvetted adult male illegal migrants on a tiny village, resulting in locals putting up with a ratio of SIX MEN TO EVERY WOMAN... Burnham is directly endangering British women and girls."

This is the logical endpoint of a policy that refuses to stop the boats while insisting every corner of the country must absorb the results.

The high-trust rural communities that once defined the character of England and Wales are being asked to surrender the very qualities that made them desirable in the first place - peace, safety, and a sense that the place still belonged to the people who lived there. One village at a time.

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Tyler Durden Thu, 08/20/2026 - 02:00

The Specter Of 'Economic Death' Looms Over All Of Us In Late-Stage Surveillance Capitalism

Authored by Milan Adams via Preppgroup,

I used to think the whole “debanking” panic was overblown. I really did. I’d roll my eyes at the Twitter threads and the think-pieces about how we’re all living in some dystopian soft-censorship nightmare. I’m a reasonable person, you know? I vote, I pay my taxes, I have a 401k that I check maybe twice a year when I’m feeling particularly masochistic. I thought the people screaming about being deplatformed or debanked were probably extremists, probably saying genuinely horrible stuff that any reasonable company would want to distance themselves from.

I was wrong about all of it, and I learned that lesson the hard way on a Tuesday morning that started like any other.

Let me tell you about March 14th, 2026. I remember the date because it was the day after my daughter’s seventh birthday, and we were still cleaning up wrapping paper and trying to find homes for the avalanche of plastic toys that had taken over our living room. I woke up, made coffee in the same black mug I always use, sat down at my desk to start the workday like I do every morning. I’m a freelance copywriter. Boring stuff. Product descriptions, email campaigns, the occasional blog post about software I don’t understand for companies I’ve never heard of. It pays the bills, or at least it used to before everything went sideways.

I tried to log into my Chase account to check if a client had paid an overdue invoice and got an error message. Weird, but not unheard of. I tried the app. Nothing. I called the number, waited through forty minutes of hold music that sounded like it was composed by an AI having an existential crisis, and finally got through to a human being who told me my accounts had been “restricted” and that I’d need to come into a branch with two forms of ID.

Restricted. That’s the word they used. Not frozen, not closed. Restricted. Like I was a teenager who’d hit their data limit.

So I drove to the branch during my lunch break, still thinking this was some kind of mistake, probably related to that time my card got skimmed at a gas station in 2019. I brought my passport, my driver”s license, a utility bill, my Social Security card, basically every piece of identification I’ve accumulated in my thirty-four years of existence. I sat down with a nice woman named Patricia who had the kind of patient smile that people develop after years of telling customers things they don’t want to hear. She typed for a while, her face slowly changing from professional neutrality to something more complicated, something that looked almost like embarrassment. Then she told me she couldn’t discuss the matter further and that I’d receive a letter explaining everything within ten business days.

Ten business days. I had maybe three hundred dollars in cash in my apartment, a mortgage payment due in five days, and a family that likes to eat food on a regular basis. I asked her what I was supposed to do until then, how I was supposed to pay for groceries or gas or the medication my wife takes for her migraines, and she just gave me that smile again and said she was sorry but there was nothing she could do.

The letter came six days later, after I’d already borrowed money from my brother-in-law and explained to my daughter why we couldn’t go to the trampoline park we’d promised her for spring break. It was three paragraphs of corporate legalese that boiled down to one sentence: my accounts had been flagged for “suspicious activity related to potential money laundering and the financing of extremist organizations.”

I read it three times sitting on my porch, feeling like I’d slipped into some alternate reality where I was a completely different person than the one I thought I was. I’m not an extremist. I’ve never been arrested. The most radical thing I’d done in the past year was argue with my HOA about whether I could plant tomatoes in my front yard. But then I got to the second page, and there it was: the specific transactions that had triggered their algorithms. A $500 transfer to a legal defense fund. A $200 donation to a nonprofit that I’d later learn had been added to some obscure watchlist. A subscription to a newsletter that apparently shared contributors with other newsletters that shared contributors with organizations that someone, somewhere, had decided were problematic.

Here’s the thing nobody tells you about the modern financial system: it’s not really run by humans anymore, not in any meaningful sense. It’s run by algorithms and risk-assessment matrices and third-party vendors that sell “reputational intelligence” to banks who are terrified of bad press and regulatory scrutiny. Somewhere in a server farm in Virginia or maybe Bangalore, a piece of software had scraped my social media, cross-referenced my donations with databases I’d never heard of, and decided I was a risk factor. And because banks are incentivized to be paranoid, because the cost of a false positive is nothing compared to the cost of missing a real bad actor, there was no appeal process that mattered. I called the number on the letter and spoke to people who genuinely seemed to want to help but had no power to do anything. I escalated to supervisors who read from scripts that all ended with the same phrase: “The decision has been made in accordance with our risk management protocols.”

I spent the next three weeks living in a kind of financial limbo that I wouldn’t wish on anyone. I couldn’t access my savings, which represented years of careful budgeting and sacrifice. My automatic payments started bouncing, which meant late fees and angry emails from creditors who didn’t care about my explanations. I had to ask my parents for a loan at thirty-four years old, which was humiliating in ways I can’t fully describe. My wife tried to be supportive, but I could see the worry in her eyes, the question she was too kind to ask: what if this doesn’t get fixed? What if this is just how things are now?

The Efficiency of the Surveillance Machine: Hard Data from 2026

Below are the official figures from FinCEN’s 2026 reporting cycle.

These numbers tell their own story about the scale of financial monitoring and its actual effectiveness:

A 0.001% success rate is not a law enforcement system. It is a mechanism of collective punishment designed to produce compliance through fear.

The part that really broke me wasn’t the practical stuff. It was the realization that someone, somewhere, had looked at my life and decided I was dangerous based on a handful of data points and association chains that I had no control over. I’ve always been politically engaged, sure. I post about local elections and environmental policy and sometimes I get into arguments in comment sections that I regret the next morning. But I’m not a radical. I’m a guy who likes to grill on weekends and worries about his kids’ education and thinks healthcare should be affordable. The donations that flagged me were to organizations that are completely legal, that have 501(c)(3) status, that operate in broad daylight. But someone had decided they didn’t like those organizations, or the people who run them, or the people who donate to them, and that dislike had cascaded through the system until it landed on me, sitting on my porch with a letter that made me feel like a criminal.

Eventually, after I hired a lawyer I couldn’t afford and threatened to go to the press, the bank reversed their decision. I got a call from someone in their “executive relations” department who explained that there had been a “misunderstanding” and that my accounts were being restored with a “goodwill credit” for the inconvenience. Just like that, after weeks of stress and shame and financial precarity, it was over. I was supposed to be grateful, I think. I was supposed to accept their apology and move on and be happy that I could pay my mortgage again. But I can’t shake the feeling that I got a glimpse behind the curtain, and what I saw there scares me more than I can articulate.

We talk a lot about free speech in this country, about the First Amendment and the marketplace of ideas, but we don’t talk as much about the infrastructure that makes participation in society possible. You need a bank account to get paid. You need a bank account to pay rent. You need a bank account to buy food, to access credit, to function in the modern economy. When that gets taken away, it doesn’t matter what rights you have on paper because you’re locked out of the systems that make those rights meaningful. And when the decision to exclude you is made by algorithms acting on criteria that are proprietary and secret, when you have no right to know who accused you or why, when the burden is on you to prove you’re not a bad person rather than on them to prove you are, that’s not freedom. That’s just a more sophisticated form of control.

I don’t know what the solution is. I’m not a policy expert. I just know that I’m different now than I was before March 14th. I self-censor more. I think twice before donating to causes I care about, before signing petitions, before posting opinions that might be controversial. I keep more cash in my safe. I’ve opened accounts at two different banks, trying to diversify my risk like I’m a portfolio instead of a person. My wife and I have talked about keeping more of our savings in physical assets, which feels paranoid until you remember that paranoia is just pattern recognition in people who’ve been burned before.

The worst part is the isolation. When this happened to me, I didn’t know who to talk to about it. I was ashamed, for one thing. There’s a stigma to having your accounts frozen that feels uncomfortably close to the stigma of being arrested, even though I hadn’t done anything wrong. And the people I did tell mostly didn’t understand. They’d say things like “just use a different bank” or “you must have done something suspicious” or “this is why I don’t mix politics and money.” They couldn’t grasp that the problem wasn’t one bank making a bad decision, it was a system that allows private companies to act as gatekeepers to economic participation based on secret criteria and political whim. They couldn’t see that this isn’t about me and my specific situation, it’s about what happens when we build a society where the infrastructure of daily life can be withdrawn as punishment for wrongthink.

I’m telling this story now because I think people need to understand that this is real, that it happens to normal people who aren’t extremists or criminals or threats to anyone. It happens to freelancers trying to pay their mortgages. It happens to parents saving for their kids’ college. It happens to people who thought they were safe because they follow the rules and stay in their lane. And once it happens, you don’t see the world the same way anymore. You realize how fragile your place in the economy really is, how conditional your participation in society has become, and how little it takes to transform a respectable citizen into a financial untouchable.

I got my accounts back, but I didn’t get my sense of security back. That disappeared somewhere between the hold music and the form letter, and I don’t think it’s coming back. I used to believe that if you were honest and worked hard and stayed out of trouble, the system would basically work for you.

Now I know better.

Now I know that the system works for whoever controls the algorithms, and the rest of us are just living at the mercy of their judgment. And that’s no way to live at all.

Tyler Durden Wed, 08/19/2026 - 23:25