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Six Stories, One Messy Tuesday In America

Buckle up — from a Texas fuel emergency to a family tragedy, a Senate sports overhaul, a federal rulebook flip, and two lawsuits testing the limits of citizenship and clemency, today’s stories all share one theme: institutions scrambling to catch up with reality.

Texas Gov. Greg Abbott declared a statewide disaster Monday as diesel prices hit an average $5.86 a gallon, temporarily loosening fuel and trucking rules to cut costs for farmers, freight operators, and consumers. (Texas Declares Diesel Disaster as Abbott Loosens Fuel Rules With Prices at $5.86) The order expands the use of dyed diesel on public roads, raises allowable truckload weights, and seeks relief from some diesel-emissions requirements, though it does not touch the state’s 20-cent-per-gallon fuel tax. The move lands in the middle of an election season, with Abbott facing Democratic challenger Gina Hinojosa and both parties trading blame over gas and diesel taxes. Source: The Washington Post

Jonathan McKinsey, 40, a director of engineering for New York Times Games, was shot multiple times Saturday afternoon at Dublin Sports Grounds in California, and his mother- and father-in-law were arrested shortly afterward on suspicion of murder. (New York Times Games Engineer Killed in Park, In-Laws Arrested for Murder) Witnesses say the couple, Shouyong Zhang and Shili Chen, took turns shooting McKinsey in a parking lot crowded with families. The killing follows a bitter divorce and custody fight, along with prior child-abuse allegations against McKinsey, though authorities have not publicly established a motive. Both suspects are being held without bail. Source: KTVU FOX 2

The Senate passed the bipartisan Protect College Sports Act 77-22 Monday, advancing a major overhaul establishing federal rules for athlete compensation, NIL deals, transfers, and NCAA enforcement. (Senate Passes Sweeping College Sports Bill, Giving NCAA New Federal Protections) The bill, sponsored by Sens. Ted Cruz and Maria Cantwell, would grant the NCAA antitrust protections, cap agent fees and school athlete spending, guarantee long-term scholarships, and allow one penalty-free transfer. Critics like Sens. Cory Booker and Chris Murphy argue it favors wealthy programs over athletes, while supporters say national rules are needed to end a patchwork of conflicting state laws. The bill now heads to a less certain fate in the House. Source: The Hill

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The Trump administration formally rescinded the Biden administration’s Title IX regulations Monday, restoring the 2020 rules and removing explicit protections against discrimination based on gender identity. (Trump Administration Formally Scraps Biden-Era Title IX Rule, Restores 2020 Regulations) The Education Department says the move follows federal court rulings that had already blocked and vacated the Biden rule nationwide. Education Secretary Linda McMahon framed the change as reducing confusion for schools, while LGBTQ advocates argue it strips transgender students of federal protections. Title IX itself remains unchanged; only its regulatory interpretation has shifted again. Source: UPI

Immigrant parents filed a class-action lawsuit Monday challenging President Trump’s August executive order restricting birthright citizenship for children born through surrogacy, to international-organization workers, and other specified categories. (Trump Faces New Class-Action Lawsuit Over Second Birthright Citizenship Order) Plaintiffs argue the policy and its new documentation requirements violate the 14th Amendment and Supreme Court precedent, potentially blocking some children from obtaining passports. A federal judge in Maryland has already called an earlier version of the order “almost certainly unconstitutional” for a related group, and this case seeks protection for a broader class of families. Source: The Washington Sun

Four people convicted in the Jan. 6, 2021, Capitol attack filed separate federal lawsuits Friday seeking damages over how their prosecutions were handled. (Four Jan. 6 Defendants Sue Federal Government, Seeking Damages Over Their Prosecutions) Lisa Eisenhart, Lynnwood Nester, Peter Schwartz, and Kenneth Harrelson allege malicious prosecution, false imprisonment, and constitutional violations by officials including former Attorney General Merrick Garland. Schwartz’s suit points to a D.C. Circuit ruling that FBI agents violated his Fifth Amendment rights by compelling him to unlock his phone; all four received clemency under Trump’s January 2025 proclamation, though that alone doesn’t establish their prosecutions were unlawful. Source: The Washington Sun

From gas pumps to grand juries, today’s news is a reminder that institutions rewrite their own rules constantly — the only question is who’s left holding the bill when they do.

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Texas Declares Diesel Disaster as Abbott Loosens Fuel Rules With Prices at $5.86

Texas Gov. Greg Abbott declared a statewide disaster Monday as diesel prices hit an average $5.86 a gallon, temporarily loosening fuel and trucking rules in an effort to cut costs for farmers, freight operators and consumers. The order expands the use of dyed diesel on public roads, raises allowable weights for certain truckloads and seeks relief from some diesel-emissions requirements.

When diesel is expensive enough to qualify as a disaster, you know the gas pump has officially entered public-policy territory.

Dyed diesel is normally reserved for off-road agricultural and construction equipment and sold without motor-fuel taxes. Abbott’s proclamation suspends restrictions that normally keep it off public roads while also allowing heavier fuel, agricultural, and timber loads.

“Texas agriculture and freight run on diesel. Record prices put both industries at risk and raise costs for every Texas family,” Abbott said. “… These steps cut costs on the farm, on the road, and at the store.” The order does not waive the underlying 20-cent-per-gallon Texas fuel tax, which Democrats have called on Abbott to suspend.

The fuel fight also lands squarely in election season. Abbott is running against Democratic state Rep. Gina Hinojosa, while Democratic U.S. Senate candidate James Talarico and Republican opponent Ken Paxton have both called for changes to federal gasoline taxes.

Editor: Nothing concentrates a politician’s attention quite like watching the price board at a truck stop turn into an opposition campaign ad.

Source: The Washington Post

New York Times Games Engineer Killed in Park, In-Laws Arrested for Murder

Jonathan McKinsey, 40, a director of engineering for New York Times Games, was shot multiple times Saturday afternoon at Dublin Sports Grounds in California, with police arresting his mother- and father-in-law, Shouyong Zhang and Shili Chen, shortly afterward on suspicion of murder. Witnesses told KTVU the couple took turns shooting McKinsey in the parking lot of the popular park, where families and children were nearby.

And somehow, the shooting may not be the darkest chapter in this family’s story.

McKinsey had been charged in 2025 with two misdemeanor counts of child abuse and pleaded not guilty. Court records cited by KTVU say his wife accused him of striking her 6-year-old son in the face and described an earlier domestic-violence incident. Deputies also alleged McKinsey left a 2-year-old girl home alone for more than an hour.

McKinsey’s wife later sought a restraining order against him, while McKinsey subsequently sought one against her. The couple was divorcing after 14 years of marriage and had been fighting over custody of their three children. None of that establishes a motive for the killing, and authorities have not publicly said what prompted the shooting.

The two in-laws were being held without bail ahead of a scheduled Wednesday arraignment. Witness Kevin Stein described just how public the killing was: “There were kids and families, just like you see now.”

Editor: Whatever happened inside this family, two grandparents allegedly bringing gunfire into a crowded park turned a private nightmare into a public homicide case—and left three children with consequences no court order can fix.

Source: KTVU FOX 2

Senate Passes Sweeping College Sports Bill, Giving NCAA New Federal Protections

The Senate passed the bipartisan Protect College Sports Act 77-22 Monday, advancing a major overhaul that would establish federal rules governing athlete compensation, NIL deals, transfers and NCAA enforcement. The legislation, sponsored by Sens. Ted Cruz and Maria Cantwell, now heads to the House, where its future is less certain.

College sports wanted national rules instead of courtroom chaos—and the Senate just handed the NCAA a very large rulebook.

Among its major provisions, the bill would give the NCAA federal antitrust protections for enforcing certain rules, limit agent fees to 5 percent, and school spending on athletes to $50 million annually. It also guarantees scholarships for 10 years after eligibility, allows athletes to transfer once without sitting out a year, and addresses conference realignment and revenue sharing.

But the bipartisan vote doesn’t mean everyone is cheering. Critics including Sens. Cory Booker and Chris Murphy argue the legislation gives too much power to the NCAA and major schools while restricting athletes’ economic leverage. “This is a bill not about student athletes, it’s about wealthy coaches and wealthy institutions and an NCAA who has enjoyed unbridled power for decades,” Booker said.

Supporters argue national rules are needed to replace conflicting state laws and years of litigation. Cruz put it this way: “It would be nice if college sports could somehow magically fix itself, but this is a matter of law, federal law, and only Congress can fix it.” The bill now heads to the House, where previous attempts at regulating college sports have stalled.

Editor: College football spent decades insisting these were students who happened to play sports. Now the money, lawyers, and federal legislation have arrived, and everybody can probably stop pretending this is intramurals with nicer stadiums.

Source: The Hill

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Trump Administration Formally Scraps Biden-Era Title IX Rule, Restores 2020 Regulations

The Trump administration formally rescinded the Biden administration’s Title IX regulations Monday, restoring the first Trump administration’s 2020 rules and removing the Biden rule’s explicit protections against discrimination based on gender identity. The Education Department says the action follows federal court decisions that had already blocked and ultimately vacated the Biden-era regulations.

Title IX hasn’t changed—the federal government’s definition of what it requires has.

The Biden administration’s regulations had expanded Title IX’s regulatory definition of sex discrimination to include discrimination based on gender identity and established related protections for transgender students. The policy also affected how schools handled sexual harassment and misconduct complaints. Federal courts subsequently blocked the rule, with a district court vacating it nationwide.

Education Secretary Linda McMahon said, “Thanks to today’s action, the published Title IX regulations faithfully reflect court orders and Congressional intent—reducing confusion for parents, students, and educational institutions.” The administration says the restored framework better reflects Title IX’s statutory prohibition on sex discrimination.

LGBTQ advocates and other critics argue that eliminating the Biden regulations leaves transgender students with fewer explicit federal protections and could narrow avenues available to students alleging discrimination. Title IX itself remains federal law prohibiting sex discrimination in federally funded education programs; the fight is over how that law is interpreted and enforced.

Editor: Nothing says “reducing confusion” quite like having America’s schools rewrite their Title IX policies every time Washington changes administrations—or a federal judge reaches for a red pen.

Source: UPI

Trump Faces New Class-Action Lawsuit Over Second Birthright Citizenship Order

Immigrant parents filed a class-action lawsuit Monday challenging President Donald Trump’s August executive order restricting birthright citizenship for several categories of U.S.-born children, arguing that the policy violates the 14th Amendment and Supreme Court precedent. The order targets specified circumstances involving children born through surrogacy, children of certain international-organization workers, and other categories.

Trump lost the broader birthright-citizenship fight at the Supreme Court, and now his administration is testing where the constitutional boundary actually sits.

The new lawsuit focuses on families who say the August order puts their children’s citizenship at risk. One plaintiff is the mother of a child born in Washington, D.C., whose parents work for international organizations; another is an Australian father expecting a child through a U.S. surrogate.

The plaintiffs also challenge new documentation requirements they say could prevent some parents from obtaining passports and other proof of citizenship for their children. A federal judge in Maryland has already blocked enforcement of the August order against children covered by an earlier class-action lawsuit, calling its application to that group “almost certainly unconstitutional.” The latest case seeks protection for a broader class.

“The Constitution is clear, and the Supreme Court has been clear: Birthright citizenship is the law of the land,” ACLU attorney Cody Wofsy said. The administration’s latest executive order remains subject to litigation, so the ultimate reach of the restrictions is unresolved.

Editor: When your first attempt at rewriting birthright citizenship loses and the sequel immediately produces another class-action lawsuit, you haven’t settled constitutional law—you’ve ordered another season.

Source: The Washington Sun

Four Jan. 6 Defendants Sue Federal Government, Seeking Damages Over Their Prosecutions

Four people prosecuted and convicted in connection with the Jan. 6, 2021, Capitol attack filed separate federal lawsuits Friday seeking damages from the government and former officials over how their cases were handled. Lisa Eisenhart, Lynnwood Nester, Peter Schwartz and Kenneth Harrelson filed their cases in federal court in Washington, with allegations including malicious prosecution, false imprisonment, and constitutional violations.

Now they’re asking the government that prosecuted them to pay them.

Eisenhart, who was sentenced to 30 months in prison, alleges officials including former Attorney General Merrick Garland and former U.S. Attorney Matthew Graves improperly targeted her and violated her First and Fifth Amendment rights. Nester, sentenced to 10 months, similarly alleges he was singled out because of his political views and Jan. 6 involvement. Those allegations have not been adjudicated in the new civil cases.

Schwartz’s lawsuit takes a different route, alleging FBI agents violated his Fifth Amendment rights by compelling him to unlock his cellphone with his fingerprint while handcuffed. The D.C. Circuit later ruled that the compelled unlocking violated his Fifth Amendment rights. Harrelson alleges malicious prosecution and false imprisonment after spending more than two years in federal custody.

All four plaintiffs received clemency under President Trump’s Jan. 20, 2025, proclamation. That clemency does not itself establish that their prosecutions were unlawful, and their new civil allegations remain to be tested in court. The lawsuits do not specify how much money they are seeking.

Editor: Jan. 6 has gone from riot to prosecution to clemency to damages claims—a five-year legal relay race in which the courthouse keeps getting the baton.

Source: The Washington Sun

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Diplomacy, disasters, and dollars: today’s six stories that actually matter.

Grab your coffee, because the world didn’t slow down overnight. From a nuclear standoff hanging by a thread to a hurricane that almost missed Hawaii but didn’t really, today’s Sixpack covers the fault lines running through geopolitics, weather, war, trade, energy markets, and Washington’s budget fights. Here’s everything you need to know, minus the fluff.

Iran Faces Nuclear Ultimatum as U.S. Peace Talks Hang by a Thread Mediators are pressing Iran to make nuclear concessions after President Trump rejected Tehran’s proposed seven-day truce, and the gap between the two sides looks as wide as ever. Washington wants talks centered on preventing an Iranian nuclear weapon, while Tehran is focused on reopening the Strait of Hormuz, ending the U.S. naval blockade, and securing sanctions relief. Iranian Foreign Minister Abbas Araghchi says his country is “fully prepared for the war to resume” but also “ready for diplomacy,” putting the choice, as he framed it, squarely on Trump. Each side seems convinced that time favors its position, leaving mediators to try to manufacture common ground between two governments in no hurry to blink. Source: The Wall Street Journal (no paywall)

Hurricane Nolo Skirts Hawaii but Unleashes Flooding, Dangerous Winds and Extreme Surf Hurricane Nolo passed south of Hawaii without a direct landfall, but its outer bands still threatened the Big Island with flooding, mudslides, damaging winds, and rainfall totals up to 20 inches. Heavy rain flooded parts of the Big Island and partially closed a major highway between Kailua-Kona and Hilo, while more than 400 Hawaii National Guard members were activated statewide. Residents are still recovering from August’s Hurricane Lala, and President Trump approved an emergency declaration authorizing FEMA assistance as crews scrambled between storm cleanups. Meanwhile, Category 4 Hurricane Polo bore down on Mexico’s Baja Peninsula, underscoring just how active this Pacific hurricane season has become. Source: Associated Press

Eight U.S. Marines Injured in Iranian Missile Attack in Strait of Hormuz Eight U.S. Marines were injured when an Iranian cruise missile struck the vessel they were aboard in the Strait of Hormuz on September 14, and the Pentagon never publicly disclosed the attack. The Marines reportedly suffered smoke inhalation and concussion symptoms before returning to duty, but officials haven’t identified what kind of vessel was hit. The disclosure lands amid broader questions about how the Pentagon has reported casualties during the Iran conflict, following reports that several deaths and injuries weren’t reflected in official counts. An Army spokesperson insisted the military isn’t downplaying injuries, but the lack of public disclosure has raised fresh questions about transparency. Source: The Jerusalem Post

U.S. and China Agree to Cut Tariffs on $60 Billion in Goods After Trump-Xi Summit The United States and China are cutting tariffs on roughly $60 billion combined worth of goods, following President Trump’s Washington summit with President Xi Jinping. The American list targets Chinese consumer goods like toys, Christmas decorations, and kitchenware, while China’s longer list leans toward U.S. agricultural products, including pork, poultry, dairy, and soy. The announcement didn’t specify exactly when the cuts take effect or how steep the reductions will be, and the two countries also created a “Board of Trade” to meet regularly. Whether this becomes a lasting thaw or just another pause in the broader trade fight remains to be seen. Source: CNBC

Oil Surges Above $107 After Trump Rejects Iran’s Strait of Hormuz Truce Offer Brent crude jumped more than 3% to above $107 a barrel after President Trump rejected Iran’s proposed seven-day truce, reversing Friday’s brief optimism over a possible deal. Trump said Iran’s terms, which included lifting sanctions and ending the naval blockade, weren’t the deal he wanted, telling Axios that Tehran “overplayed their hand.” The fallout spread to stocks and bonds, with the 10-year Treasury yield climbing near its highest level since 2007, as investors worry that pricier energy could fuel another inflation cycle. Markets are now pricing in a strong chance of another Fed rate hike as the world’s energy supply once again hinges on a narrow, contested waterway. Source: Euronews

Trump Cancels $810 Million in Federal Spending, Setting Up New Fight Over Congress’ Power of the Purse President Trump is withholding $810 million in congressionally appropriated funds, including $567 million tied to refugee and asylum services, using a maneuver known as a “pocket rescission.” The Government Accountability Office has said this tactic, which withholds funds until they expire before Congress can respond, is illegal, and the criticism isn’t limited to Democrats. Republican Sen. Susan Collins argued that the Office of Management and Budget “does not get to decide which programs are worth funding,” while the White House frames the cuts as eliminating wasteful spending. The dispute sets up a fresh round in the long-running battle over whether the executive branch can override Congress’s constitutional control of federal spending. Source: NPR

That’s the state of play this morning: a fragile ceasefire nobody trusts, a storm nobody quite dodged, and a government spending fight that’s really about who’s actually in charge. We’ll be back tomorrow with six more.

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Iran Faces Nuclear Ultimatum as U.S. Peace Talks Hang by a Thread

Mediators are pressing Iran to make nuclear concessions in hopes of reviving negotiations with the United States after President Trump rejected Tehran’s proposed seven-day truce. The diplomatic scramble is aimed at preventing the conflict from sliding back into full-scale war, but Iran has given negotiators little indication it is ready to budge on the nuclear issue.

The problem is simple: Washington and Tehran are negotiating over two very different things, and neither side seems interested in blinking first.

Trump wants the talks centered on preventing Iran from obtaining a nuclear weapon, while Tehran has focused on reopening the Strait of Hormuz, ending the U.S. naval blockade, and securing sanctions relief. Iran’s rejected proposal would have reopened the strait and restarted nuclear negotiations within seven days if Washington lifted the blockade and eased sanctions.

Iranian Foreign Minister Abbas Araghchi says Tehran remains ready for diplomacy—but also for another round of fighting. “We are fully prepared for the war to resume,” Araghchi said. “We stand firm in the face of any new aggression, even if it comes to a doomsday war. But at the same time we stand ready for diplomacy. It is up to President Trump to choose.” Meanwhile, Trump told Axios he expects more talks with Iran this week, even after rejecting Tehran’s proposal.

The U.S. believes its blockade and growing oil traffic through Hormuz are weakening Iran’s leverage, while Tehran appears convinced it can withstand continued economic and military pressure. That leaves mediators trying to manufacture a compromise between two governments that each think time is working in its favor—a famously relaxing recipe when nuclear weapons, oil supplies, and another bombing campaign are all part of the conversation.

Editor: Nothing screams “peace process” quite like one side discussing nuclear concessions, the other preparing for “doomsday war,” and everybody insisting the negotiations are still alive. Technically, so is a patient when the defibrillator comes out.

Source: The Wall Street Journal (no paywall)

Hurricane Nolo Skirts Hawaii but Unleashes Flooding, Dangerous Winds and Extreme Surf

Hurricane Nolo passed south of Hawaii without making a direct landfall, but its outer bands threatened the Big Island with life-threatening flooding, mudslides, damaging winds and rainfall totals of up to 20 inches. The storm was packing sustained winds of 90 mph as it crawled south of the islands, with forecasters expecting it to strengthen into a major hurricane as it moved westward.

Hawaii dodged Nolo’s center, but it didn’t dodge the storm.

Heavy rain flooded sections of the Big Island, partially closing a major highway between Kailua-Kona and Hilo. More than 120 Hawaii National Guard members were activated on the island, part of roughly 400 statewide, while officials warned residents about flooded roads, falling trees, and downed power lines. “Don’t venture out if you don’t have to into the dangerous flooding environment, but also high winds. We can have trees and power lines down,” National Hurricane Center Director Michael Brennan said.

The timing couldn’t be much worse. Big Island residents are still recovering from August’s Hurricane Lala, which brought heavy rain and winds powerful enough to sweep about 100 homes from their foundations. President Donald Trump approved an emergency declaration authorizing FEMA assistance, while Hawaiian Electric repositioned crews that had been restoring power after yet another storm, Hurricane Lowell.

And because the Pacific apparently misplaced its off switch, Hawaii wasn’t the only place watching the tropics. Category 4 Hurricane Polo was bearing down on Mexico’s Baja California Peninsula with sustained winds of 140 mph, while forecasters described this Pacific hurricane season as unusually active. For Hawaii, Nolo’s direct-hit threat may have eased, but the floods, wind, and surf were more than enough reminder that “missed us” is a highly relative term during hurricane season.

Editor: Hawaii has now reached the stage of hurricane season where utility crews are being moved from one storm cleanup to prepare for the next storm. At some point, Mother Nature needs to discover the concept of PTO.

Source: Associated Press

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Eight U.S. Marines Injured in Iranian Missile Attack in Strait of Hormuz

Eight U.S. Marines were injured when an Iranian cruise missile struck the vessel they were aboard in the Strait of Hormuz on September 14, according to an NBC News report cited by The Jerusalem Post. None suffered serious injuries, but the Marines reportedly experienced smoke inhalation and concussion symptoms, including headaches, before returning to duty.

The Pentagon did not publicly disclose either the September 14 attack or the Marines’ injuries.

The officials cited in the report said the Marines weren’t aboard a U.S. Navy ship, but they didn’t identify what kind of vessel was hit. That leaves an important piece of the incident unexplained even as U.S. forces enforce a naval blockade against Iran and provide protection for commercial shipping moving through the strategically vital Strait of Hormuz.

The disclosure also lands amid questions about how the Pentagon has publicly reported U.S. casualties during the Iran conflict. The Washington Post previously reported that at least four service members killed in the Middle East since the war began weren’t reflected in the official casualty count, while wounded troops have separately accused the Defense Department of understating the severity of some injuries. The military disputes those accusations and says casualty classifications have precise definitions that can be misunderstood.

“The care and well-being of our soldiers is of the highest priority,” an Army spokesperson said, according to CBS News. “Any assertion that the army seeks to downplay a soldier’s injuries is simply not true.” Fair enough, but when eight Marines are injured in an Iranian missile strike and the incident itself isn’t publicly disclosed, people are going to have questions about more than terminology.

Editor: Eight Marines, an Iranian cruise missile, and a previously undisclosed attack. That’s the sort of footnote that usually deserves to be somewhere other than the footnotes.

Source: The Jerusalem Post

U.S. and China Agree to Cut Tariffs on $60 Billion in Goods After Trump-Xi Summit

The United States and China are moving to reduce tariffs on roughly $30 billion worth of each other’s goods, covering everything from Chinese toys and household products to American agriculture and food exports. The reciprocal lists were released after President Donald Trump’s Washington summit with Chinese President Xi Jinping, adding a concrete trade measure to the two countries’ continuing tariff truce.

That’s $60 billion worth of trade getting at least some relief from a tariff fight that has made doing business across the Pacific considerably more expensive.

The American list focuses heavily on consumer products imported from China, including toys, Christmas decorations, kitchenware, bedding, microwave ovens, sporting goods, and other household items. China’s much longer list leans heavily toward U.S. agricultural and food products, including livestock, pork, poultry, salmon, dairy products, peanuts, apples, and soy products. The framework reportedly covers 1,619 U.S. export items entering China and 77 categories of Chinese goods entering the United States.

The potentially important catch is that the announcement didn’t immediately spell out exactly when the reductions would begin or how far tariff rates would fall. That’s no small detail considering the steep duties imposed during the trade confrontation. The broader tariff truce has meanwhile prevented another round of increases, giving businesses on both sides something they haven’t enjoyed much of lately: a little predictability.

The two governments also created a U.S.-China “Board of Trade,” with officials expected to meet at least quarterly and senior officials meeting when necessary. For American farmers, Chinese manufacturers, and retailers heading into the holiday season, tariff relief could translate into greater sales and lower import costs. Whether this becomes a durable thaw or merely another timeout in the U.S.-China trade fight remains an open question, and the tariff guns aren’t exactly being melted down.

Editor: After years of using tariffs as economic artillery, Washington and Beijing have discovered the revolutionary diplomatic concept of charging each other less money. Somewhere, a container full of Christmas ornaments is breathing easier.

Source: CNBC

Oil Surges Above $107 After Trump Rejects Iran’s Strait of Hormuz Truce Offer

Brent crude jumped more than 3% to above $107 a barrel Monday after President Donald Trump rejected Iran’s proposed seven-day truce, reigniting fears that the conflict and restrictions around the Strait of Hormuz will keep squeezing global energy supplies. U.S. benchmark WTI also climbed, trading above $94 a barrel as markets reversed some of Friday’s optimism over a possible agreement.

The peace proposal lasted long enough to knock oil prices down Friday, and its rejection sent them roaring right back up.

Tehran had proposed pausing hostilities and reopening the Strait of Hormuz, but its conditions included releasing frozen Iranian assets, lifting sanctions on Iranian oil, and ending the U.S. naval blockade. Trump rejected those terms while leaving the door open to more negotiations. “They want to make a deal, but it is not the deal that I want to make,” Trump told Axios. “They overplayed their hand.”

The fallout spread well beyond the oil market. U.S. stock futures fell, European markets were mostly lower, and the 10-year Treasury yield briefly climbed above 5.21%, near its highest level since 2007. The yield stood at 3.97% when the Iran war began. Investors are increasingly concerned that expensive energy could feed another inflation cycle and keep the Federal Reserve raising interest rates, with markets putting the probability of another hike at its October meeting above 65%.

That creates an ugly economic feedback loop: conflict threatens energy supplies, higher oil prices feed inflation, inflation pushes interest rates higher, and higher borrowing costs pressure consumers, businesses, and stocks. Add increased shipping risks around both the Strait of Hormuz and the Red Sea, and the world’s energy market is once again depending heavily on what happens in some extremely narrow—and extremely contentious—stretches of water.

Editor: Diplomats can debate ceasefire language all week. Oil traders need about 30 seconds and a rejected proposal before reaching for the “BUY” button.

Source: Euronews

Trump Cancels $810 Million in Federal Spending, Setting Up New Fight Over Congress’ Power of the Purse

President Donald Trump is withholding $810 million that Congress had appropriated for federal programs, including $567 million connected to services for refugees, asylees, and other noncitizens. The administration is using what’s known as a “pocket rescission,” reigniting a dispute over whether a president can effectively cancel congressionally approved spending by acting too late in the fiscal year for Congress to respond.

The constitutional question is bigger than $810 million: who ultimately gets to decide how taxpayer money is spent?

The Constitution gives Congress the power of the purse, while federal law provides a process for presidents to ask Congress to rescind previously approved funds. The Government Accountability Office has concluded that pocket rescissions—in which funds are withheld until they effectively expire before Congress has adequate opportunity to act—are illegal. With the fiscal year ending within days, lawmakers don’t have the usual window to accept or reject these cancellations.

Criticism isn’t limited to Democrats. Republican Sen. Susan Collins of Maine, chair of the Senate Appropriations Committee, said the Office of Management and Budget doesn’t have authority to substitute its judgment for Congress. “OMB is an agency of the executive branch. It does not get to decide which programs are worth funding.” Democrats, including Sen. Patty Murray and Rep. Brendan Boyle, likewise accused the administration and OMB Director Russell Vought of circumventing Congress. The White House, meanwhile, characterizes the action as eliminating spending it considers wasteful or harmful.

The cuts also include $15 million for a Justice Department program dealing with racial and ethnic tensions and civil disorders, $70 million for programs supporting foreign students and faculty studying or teaching language, and additional climate, research, and nonprofit grants. Whatever one thinks of those programs, the institutional fight is straightforward: Congress appropriated the money, the executive branch doesn’t want to spend it, and the dispute over whether it can legally prevent that spending is headed straight back into the long-running battle over presidential and congressional authority.

Editor: Washington has found a wonderfully efficient way to turn an $810 million spending dispute into a constitutional argument. Apparently even the budget has discovered the executive-order lifestyle.

Source: NPR

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Buckle up, because today’s rundown moves from quiet neighborhoods to the UN General Assembly floor, and nothing about it stayed quiet for long.

ICE Arrests Hit Record Highs as Trump’s Deportation Push Spreads Across America

ICE’s biggest enforcement surge of the summer didn’t come from one blockbuster raid, it spread through ordinary American life, one arrest at a time, with roughly 43,000 arrests in June, more than 49,000 in July, and nearly 51,000 in August. Agents showed up at homes, traffic stops, airports, courthouses, and hospitals in both red and blue states alike, and Cato’s David Bier put his finger on why it hasn’t sparked bigger headlines: the gradual, everywhere-at-once nature of the operation is letting it fly under the radar. Most of those swept up were accused only of civil immigration violations, not crimes, and the human toll, frightened kids, disrupted businesses, confrontations involving force, is quietly piling up nationwide. Source: New York Times

Trump’s Big Diplomatic Week Runs Into Xi, Iran and the Limits of American Power

President Trump spent the week projecting strength, threatening to “annihilate” Iran and hosting Chinese President Xi Jinping, but the results were considerably less commanding than the rhetoric. The Trump-Xi summit produced only a two-month extension of the trade truce, leaving Taiwan, AI, and trade largely unresolved, while allies and adversaries alike showed a growing willingness to push back, from declined requests for help on Iran to a scaled-back Greenland deal. Even Trump seemed to concede the uncertainty, joking about a new AI name, “Let’s see if I have any power. Maybe I do and maybe I don’t.” Source: Reuters

Treasury Yields Hit Decades-High Levels as the Era of Easy Rate Cuts Evaporates

The 30-year Treasury yield spiked to 5.5% Thursday, its highest since 2004, while the 10-year touched 5.22%, a level unseen since 2007, as traders now price in a 71% chance of an October rate hike. Rising oil prices, above $100 a barrel amid the Iran war, and persistent inflation are driving the reversal, and the pain isn’t just American: French, German, and Japanese yields all hit multi-decade highs too. As ING’s Padhraic Garvey put it, “None of the drivers that brought us the increase in rates are going away,” which is bad news for anyone with a mortgage, a car loan, or a government budget to balance. Source: CNN

SoftBank Slides as Oracle’s Stargate Warning Exposes AI’s $500 Billion Reality Check

SoftBank shares dropped 3.1% Friday after Oracle reportedly issued a force-majeure notice over possible power-related delays at Project Jupiter, a New Mexico data-center campus tied to the $500 billion Stargate initiative. It turns out building the AI future takes more than GPUs and giant checks, it also requires enough electricity, and SoftBank is taking on serious leverage to chase its AI ambitions, including $11.1 billion in new bonds this week and a $430 billion data-center backlog through SB Energy. Investors are growing choosier about AI debt too, a sign that the next phase of this boom will be judged less by splashy announcements and more by whether the power actually turns on. Source: Yahoo Finance

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Judge Blocks Trump’s White House Press Ban—but the Access Fight Isn’t Over

A federal judge ordered the Trump administration to restore White House credentials for journalists from CNN, MS NOW, and Politico, finding a “high likelihood” that their passes were revoked without due process. The relief was messy in practice, with some reporters still denied entry to cover Xi Jinping’s state-dinner arrival even after the ruling, and Trump falsely claiming the outlets had “refused” to cover it. The underlying First Amendment and due-process lawsuit continues, and notably, the same judge once ordered CNN’s Jim Acosta’s credentials restored back in 2018, proving that this particular Washington fight has a long memory. Source: Washington Post

Netanyahu Targets NYC Mayor Zohran Mamdani in Fiery UN Showdown Over Israel and Gaza

Israeli Prime Minister Benjamin Netanyahu directly attacked New York City Mayor Zohran Mamdani during his UN General Assembly speech, accusing him of antisemitism and telling him, “Shame on you for distorting the facts.” Mamdani, a longtime Israel critic who once floated arresting Netanyahu under an ICC warrant, fired back afterward, calling Netanyahu’s defense of Israel’s conduct “baseless lies,” while many delegates walked out ahead of the speech and supporters chanted in the hall. Neither man showed any interest in lowering the temperature, turning a UN session into one of the most personal confrontations of the week.

Six very different stories, one clear thread: Power is getting harder to wield quietly, whether it’s a deportation dragnet, a diplomatic summit, a bond market, a data center, a press pass, or a podium fight at the UN. Source: UPI

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ICE Arrests Hit Record Highs as Trump’s Deportation Push Spreads Across America

Immigration arrests surged across the United States this summer, with ICE making about 43,000 arrests in June, more than 49,000 in July and nearly 51,000 in August as the Trump administration expanded enforcement and the pool of people eligible for deportation. The striking part wasn’t just the numbers—it was how routinely federal agents began appearing at homes, traffic stops, airports, courthouses, hospitals and other everyday locations.

This wasn’t one giant immigration raid—it was a nationwide enforcement system becoming part of the scenery.

The New York Times reviewed videos, photographs and court records from more than 50 incidents and found arrests occurring across the country, including in states where immigration enforcement had previously generated far more visible opposition. Partnerships with local law enforcement helped extend federal reach in Republican-led states, while operations also increased in Democratic strongholds despite state and local restrictions. Cato Institute immigration-policy director David Bier described why the expansion has attracted comparatively less attention: “This gradual rise everywhere all at once, through a lot of means, is enabling the operation to fly under the radar.”

The encounters described in the report range from the mundane to the traumatic: arrests at laundromats, after traffic stops, inside homes, at airports and during hospital treatment. ICE says its officers are conducting lawful, targeted enforcement and argues that courthouse arrests conserve resources. Families and witnesses interviewed by the Times describe frightened children, disrupted businesses and confrontations involving force. The report also notes an important distinction often lost in the immigration debate: most of those arrested were accused of civil immigration violations and had not been charged with or convicted of crimes.

That decentralized approach may be the biggest development here. High-profile raids can produce demonstrations, cameras and headlines; thousands of smaller encounters scattered across dozens of states can produce comparable—or greater—enforcement with much less national attention. ICE summarized the administration’s position this way: “This is promises made and promises kept in action. The results speak for themselves.” Whatever one thinks of the policy, the numbers show the machinery of immigration enforcement operating at a scale that is increasingly difficult to dismiss as a temporary surge.

Editor: The spectacle may have faded, but the enforcement certainly hasn’t. Turns out a dragnet doesn’t need a press conference when it can simply become part of the daily routine.

Source: New York Times

Trump’s Big Diplomatic Week Runs Into Xi, Iran and the Limits of American Power

President Donald Trump used a packed week of diplomacy to declare American strength, threaten Iran and host Chinese President Xi Jinping—but Reuters reports the meetings also highlighted resistance from allies and adversaries and unresolved conflicts abroad. The centerpiece summit with Xi produced a two-month extension of the U.S.-China trade truce, while major disputes involving Taiwan, artificial intelligence and trade remained unresolved.

The message was “America is back.” The week’s results showed that everybody else still gets a vote.

Trump’s UN speech was characteristically forceful. He threatened to “annihilate” Iran if Tehran failed to reach an agreement, defended his administration’s use of American military power and argued that his policies had advanced U.S. interests. The White House disputed the idea that his foreign policy had stalled, telling Reuters that Trump was focused on results rather than diplomatic “posturing.” Meanwhile, the nearly seven-month Iran war continues to disrupt energy supplies and remains a major challenge for the administration.

Then came Xi. The Chinese leader arrived in Washington with leverage of his own, including China’s dominant position in rare-earth minerals. The summit delivered plenty of ceremony but comparatively little in concrete agreements beyond extending the trade truce. Chinese state media said Xi pressed Trump privately to oppose Taiwan independence, while Taiwan remains a central source of friction between Washington and Beijing. Brett Bruen, a former Obama administration foreign-policy adviser, offered Reuters this assessment: “But it’s noteworthy that he goes all wobbly when it comes to Xi Jinping and ascendant Chinese power.”

The larger problem for Trump is that other governments are increasingly willing to resist U.S. demands. Reuters pointed to European and Asian allies declining requests for help in the Iran conflict, stalled efforts involving Russia and Ukraine, and an agreement expanding America’s military presence in Greenland that stopped short of Trump’s earlier demand to own the territory. With November’s midterms approaching, domestic politics could further affect the administration’s room to maneuver. Trump himself supplied perhaps the week’s most fitting line while pitching a new name for AI: “Let’s see if I have any power. Maybe I do and maybe I don’t. We’re going to find out pretty soon.”

Editor: Trump wanted a week that advertised American leverage. Instead, much of the world appeared to read the fine print—and discovered that “Art of the Deal” still requires somebody on the other side to sign.

Source: Reuters

Treasury Yields Hit Decades-High Levels as the Era of Easy Rate Cuts Evaporates

The 30-year U.S. Treasury yield surged as high as 5.5% Thursday—its highest level since 2004—while the benchmark 10-year yield touched 5.22%, a level not seen since 2007. Rising energy prices, persistent inflation and a resilient U.S. economy have dramatically changed expectations for Federal Reserve policy, with traders now pricing in a 71% chance of an October rate hike, according to the CME FedWatch tool.

Wall Street started the year dreaming about rate cuts. Now it’s pricing in another hike while oil trades above $100. That escalated quickly.

The immediate trouble is energy. Brent crude settled Thursday at $106.60 a barrel, up 3.41%, as the Iran war and disruption surrounding the Strait of Hormuz continue feeding inflation concerns. The bond sell-off isn’t confined to America, either. Ten-year yields in France and Germany reached roughly 15-year highs, while Japan’s 10-year yield climbed to 3.08%, its highest level since 1996. “Every major bond market’s feeling the heat at once,” deVere Group CEO Nigel Green said.

That matters well beyond trading desks because Treasury yields influence borrowing costs throughout the economy. Higher yields can translate into more expensive mortgages, auto loans and business financing, while also increasing the government’s financing burden. The two-year Treasury yield, particularly sensitive to expectations for Fed policy, has climbed from 3.48% at the beginning of the year to 4.93% this month. As Green put it, “Anyone positioned for a global easing cycle has had the ground pulled from under them.”

There is still plenty that could change. Oil prices dropped temporarily Thursday after a Reuters report that U.S. and Iranian negotiators had discussed a possible route toward reopening the Strait of Hormuz, demonstrating just how headline-driven these markets have become. But even the Treasury Department’s roughly $4.08 billion purchase of long-term bonds Thursday did little to contain yields. ING strategist Padhraic Garvey summed up the problem: “None of the drivers that brought us the increase in rates are going away.” For homeowners, businesses and Uncle Sam, that’s the sentence worth remembering.

Editor: The soft-landing crowd ordered lower rates and got $100 oil, 5%-plus Treasury yields and another possible Fed hike instead. Somewhere, a mortgage calculator just requested hazard pay.

Source: CNN

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SoftBank Slides as Oracle’s Stargate Warning Exposes AI’s $500 Billion Reality Check

SoftBank Group shares fell 3.1% Friday after Oracle reportedly issued a force-majeure notice tied to possible power-related delays at Project Jupiter, a massive New Mexico data-center campus connected to the $500 billion Stargate AI infrastructure initiative involving Oracle, OpenAI and SoftBank. Oracle is reportedly seeking protection from payment obligations if the facility cannot begin operating in 2028 as planned.

Apparently, building the AI future requires more than GPUs and gigantic checks—you also have to find enough electricity to turn the thing on.

The warning puts a spotlight on an increasingly important constraint facing the AI infrastructure race. Developers are planning enormous data centers, but actually delivering them requires power generation, transmission capacity, construction crews and financing on schedules that may stretch for years. Project Jupiter’s potential delay is therefore bigger than one campus: it raises questions about how quickly hundreds of billions of dollars in promised AI investment can become functioning infrastructure.

The timing is especially awkward for SoftBank, which is taking on more leverage as it pursues its AI ambitions. The company raised $11.1 billion through dollar- and euro-denominated bonds this week, with proceeds intended partly to finance its investment in OpenAI. At the same time, investors are becoming more discriminating about AI-related debt, with spreads reportedly around 115 basis points compared with 78 basis points for the broader market. That’s bond-market language for: enthusiasm is wonderful, but lenders would still like their money back.

SoftBank’s exposure extends further through SB Energy, which is preparing for a potential U.S. listing and reportedly has a $430 billion data-center backlog. Much of that business, however, is long-dated and concentrated among SoftBank and OpenAI. None of this means the AI infrastructure boom is finished; it does mean the next phase will be measured less by splashy investment announcements and more by whether companies can secure power, finish construction and finance these projects without making their balance sheets resemble science experiments.

Editor: Silicon Valley spent years telling us AI would solve problems humans couldn’t. First assignment: locate several gigawatts of electricity, a few hundred billion dollars and a construction crew that can promise Tuesday and actually mean Tuesday.

Source: Yahoo Finance

Judge Blocks Trump’s White House Press Ban—but the Access Fight Isn’t Over

A federal judge ordered the Trump administration to restore White House credentials for journalists from CNN, MS NOW and Politico, finding the outlets had shown a “high likelihood of success” on their claim that their passes were revoked without due process. U.S. District Judge Timothy Kelly, a Trump appointee, issued a 14-day temporary restraining order while the organizations’ lawsuit proceeds.

The judge said restore the credentials. By sunrise, some reporters were still outside and some of their badges were in Secret Service hands.

The confusion eventually eased. Journalists from all three organizations regained general White House access around midday Thursday, according to the Post. But CNN and MS NOW later said some of their journalists were denied entry to cover Chinese President Xi Jinping’s arrival for the state dinner. Trump subsequently claimed the outlets had “refused to cover” the arrival, a characterization contradicted by their accounts that journalists had been denied access.

The underlying court fight is more consequential than Thursday’s credential scramble. The outlets argue that banning them because of their coverage violates the First Amendment and that revoking their credentials without proper procedures violates Fifth Amendment due-process protections. The White House says its actions are lawful and has invoked national-security concerns. Kelly was skeptical, writing: “This is a high bar, but Plaintiffs have met it.” He also questioned whether national security was actually behind the bans, noting that Trump publicly focused on what he regarded as false and negative coverage when announcing them.

The temporary order doesn’t resolve the lawsuit, and questions remain about access to particular events and participation in the television pool. But there’s some history here: Kelly was also the judge who ordered the restoration of then-CNN reporter Jim Acosta’s credentials in 2018 on due-process grounds. Eight years later, different reporters and a different lawsuit have landed him in familiar territory. Apparently some Washington sequels don’t even bother changing directors.

Editor: The White House wanted to decide which reporters deserved a seat in the room. Judge Kelly’s temporary answer was considerably less complicated: you don’t get to yank credentials first and figure out due process later.

Source: Washington Post

Netanyahu Targets NYC Mayor Zohran Mamdani in Fiery UN Showdown Over Israel and Gaza

Israeli Prime Minister Benjamin Netanyahu directly attacked New York City Mayor Zohran Mamdani during his UN General Assembly speech Thursday, accusing the longtime Israel critic of antisemitism and saying Jewish New Yorkers no longer feel safe under his leadership. Mamdani fired back afterward, accusing Netanyahu of using “baseless lies” to defend Israel’s conduct toward Palestinians. Their confrontation brought a long-running political feud onto one of the world’s biggest diplomatic stages.

Nothing says international diplomacy quite like the Israeli prime minister flying to New York and publicly fighting with the mayor of New York.

Netanyahu told Mamdani, “Shame on you for distorting the facts, shame on you for inverting victim and aggressor, shame on you for spitting in the face of truth.” He also rejected allegations of genocide against Israel, declaring, “Israel didn’t commit genocide. Israel prevented genocide.” Netanyahu and his government deny genocide allegations. Mamdani responded that Netanyahu remained subject to an International Criminal Court arrest warrant alleging war crimes and crimes against humanity.

Mamdani has long criticized Israel’s government and supports Palestinian independence. He previously said he wanted Netanyahu arrested under the ICC warrant if the Israeli leader visited New York, though in July Mamdani said city officials lacked the legal authority to make that arrest. At Thursday’s UN session, many delegates walked out before Netanyahu spoke, while supporters remained and chanted. Just before the speech, Mamdani posted video of an olive tree being planted at Gracie Mansion with Palestinian families from Gaza, writing, “May peace be our future.”

For Netanyahu, the New York confrontation gave him an opportunity to challenge one of America’s most prominent elected critics of his government while defending Israel’s conduct before an international audience. For Mamdani, it offered an equally visible opportunity to restate his opposition to Netanyahu’s policies. Neither man appears interested in lowering the temperature, and the UN General Assembly just supplied them with a considerably larger thermostat.

Editor: Netanyahu came to address the United Nations and wound up addressing the mayor. Mamdani planted an olive tree and responded with a flamethrower. So much for symbolism doing the heavy lifting.

Source: UPI

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A 5% Wake-Up Call, A Superpower Summit, And A Judge Who Wasn’t Having It

Wake up, because Washington had one of those days where the bond market, the White House, a federal courtroom, and a telecom giant all decided to make news at once. Here’s everything that mattered this morning.

Treasury Yields Blow Past 5% as Inflation Fears Put Another Fed Rate Hike in Play

The bond market delivered a jolt Wednesday as the 10-year Treasury yield ripped above 5% and touched levels not seen since 2007, driven by hot economic data, hawkish Fed commentary, a weak government bond auction, and climbing oil prices. Strong services and manufacturing readings, rising input costs, and a jump in oil above $100 a barrel all pointed the same direction, and traders responded by pushing the odds of another Fed rate hike in October to roughly two-thirds, up sharply from just weeks ago. The takeaway from strategists was blunt: the inflation fight isn’t over, and borrowing costs may keep climbing from here. Source: CNBC

Trump and Xi Meet at White House With Trade, AI, Taiwan and Iran on the Table

President Trump and Chinese President Xi Jinping sat down for high-stakes talks in Washington this week, wrapped in elaborate ceremony but centered on real disagreements. The two countries extended their trade truce into January, buying time after tariffs had spiked into triple digits earlier in their relationship, while artificial intelligence emerged as perhaps the summit’s most consequential long-term issue, with Washington floating a mechanism to notify Beijing about serious AI incidents. Taiwan and Iran loomed over the talks as well, and with no joint press conference planned, both governments were left to spin the outcome separately to their own audiences. Source: Al Jazeera

Trump-Appointed Judge Orders White House to Restore CNN, MS NOW and Politico Access

A federal judge appointed by President Trump himself ordered the White House to immediately restore press credentials for CNN, MS NOW, and Politico, ruling that the outlets were likely to win their case that they’d been denied constitutionally adequate due process. The judge wasn’t persuaded by the administration’s national-security justification, noting that Trump’s original explanation centered on coverage he considered unfair rather than any security threat, and much of the cited reporting was old news to begin with. The ruling is temporary, but it hands the three outlets their access back while the larger legal fight over press freedom at the White House continues. Source: UPI

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China’s Iran Lifeline Looms Over Trump-Xi Summit as Weapons Supply Trail Grows

Even as Beijing publicly promotes itself as a Middle East peacemaker, Chinese entities have shipped thousands of dual-use components to Iran, including roughly 1,300 shipments to Iran’s Defense Ministry in the first half of this year alone. Those shipments have included electronics, motors, GPS equipment, and aircraft parts useful for drones and missiles, while China has also become the top buyer of Iranian oil and a financial lifeline for Tehran despite U.S. sanctions. Trump himself has downplayed the connection, saying he trusts Xi’s assurance that China won’t arm Iran, even as members of his own administration see it very differently. Source: The Wall Street Journal

ICE Agents Mistake U.S. Citizen for Fugitive, Leaving Him Bloodied on an Evanston Roadside

Federal immigration agents in Evanston, Illinois, mistakenly detained and injured a U.S. citizen after apparently deciding he resembled a fugitive they were hunting. Witnesses described agents pinning the man to the ground with a knee on his back while he screamed that he was a citizen, and he ultimately suffered injuries to his head, neck, and teeth before agents determined they had the wrong man and released him. The episode landed amid a major expansion of ICE enforcement nationwide, with local officials condemning the encounter and police continuing to investigate. Source: Associated Press

AT&T Says AI Will Shrink Its Workforce as Telecom Giant Automates Its Old Empire

AT&T says its workforce will keep shrinking over the next five years as artificial intelligence, automation, and the retirement of its aging copper network reshape the company. Having already cut more than half its employees over the past decade to around 131,000, AT&T is now using AI for customer service, software development, and network maintenance, with some estimates suggesting headcount could fall closer to 85,000 by 2030. The company insists it will still hire for AI governance and fiber infrastructure roles, even as it builds itself into a leaner, fiber-and-wireless-focused company. Source: WIRED

From soaring bond yields to a superpower summit, a courtroom rebuke, and a telecom giant betting its future on fewer people, today’s stories all point to the same theme: the systems running our economy, our politics, and our institutions are shifting.

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The 10-year Treasury yield ripped above 5% Wednesday and reached 5.104%, its highest level since July 2007, as strong economic data, hawkish Fed talk, an ugly Treasury auction and rising oil prices converged on the bond market. The 13-basis-point surge was the 10-year’s biggest one-day move in nearly 18 months—and suddenly the Fed’s first rate hike since 2023 looks a lot less like a one-off.

The bond market is telling investors that the inflation fight isn’t finished—and borrowing money could WILL get even more expensive from here.

The pressure was everywhere. The 2-year Treasury yield jumped more than 11 basis points to 4.889%, its highest since May 2024, while the 30-year climbed above 5.39%, its highest level since June 2007. Traders raised the implied odds of another quarter-point Fed hike in October to 66.4%, up from 55% a day earlier and less than 10% a month ago. Tony Miano of Wells Fargo Investment Institute put it plainly: “This is the market telling us we’ve entered a genuine re-tightening cycle.” His bottom line was even sharper: “you can’t fool or hide in the bond market – unless the Fed gets inflation under control the long end of the curve is going to continue to come under pressure.”

Then came economic data that gave bond traders even more reason to reach for the antacids. S&P Global’s September services PMI jumped to 58.7, its highest in nearly five years, while manufacturing hit 56.7, the strongest reading in more than four years. “Business is clearly booming now in both manufacturing and services,” S&P Global economist Chris Williamson said, while warning that input costs rose at their fastest pace in four years. Fed Governor Michael Barr added that “further policy adjustments are likely to be needed,” and a weak five-year Treasury auction only poured more gasoline on the selloff.

Oil supplied the actual gasoline. Brent crude settled above $103 a barrel and U.S. crude above $92 as the U.S.-Iran war continued to pressure energy markets and revive fears of persistent inflation. Put it together and the message from markets is uncomfortable: strong growth, expensive oil, and stubborn inflation could force the Fed to keep rates higher—or raise them again—even as Treasury borrowing costs hit levels not seen since before the financial crisis.

Editor: Wall Street spent years begging for stronger growth. Now it has strong growth, $100 oil, and 5% Treasury yields, which is roughly the economic equivalent of getting everything on your wish list and discovering the shipping charge is $4 trillion.

Source: CNBC

President Donald Trump and Chinese President Xi Jinping are holding high-stakes talks in Washington Thursday as the world’s two biggest economies try to keep their trade truce alive while confronting disputes over artificial intelligence, Taiwan and Iran. Xi’s first U.S. state visit in more than a decade comes with considerable ceremony: Trump personally greeted him at Joint Base Andrews Wednesday, followed Thursday by a White House welcome featuring hundreds of military personnel and a military flyover.

The smiles may be plentiful, but this meeting is really about whether Washington and Beijing can compete without turning every disagreement into the next international crisis.

Trade provides the immediate test. The countries have extended their 11-month truce until January 10, buying negotiators more time after a tariff fight that previously sent duties into triple digits. Trump and Xi reached an earlier truce in South Korea in October 2025, and their May meeting in China produced agreements including additional Chinese purchases of U.S. farm products and Boeing aircraft. Since then, however, Washington has imposed another 12.5% tariff on goods from China and dozens of other trading partners over allegations involving forced-labor imports.

AI may be the summit’s most consequential long-term issue. The two countries are competing to develop increasingly powerful systems while Washington has proposed a notification mechanism under which the governments could alert each other about AI incidents serious enough to threaten national security. Taiwan remains another major fault line: Beijing is expected to raise U.S. arms sales to the island, while Trump has publicly described those sales as a “very good negotiating chip.” Iran is also expected to figure prominently, given Beijing’s relationship with Tehran and the continuing conflict involving the United States, Israel, and Iran.

The choreography makes clear both governments want to keep the relationship from flying apart. Trump and Melania Trump welcomed Xi and Peng Liyuan personally Wednesday, and the White House scheduled a full state arrival, dinner, and Friday tea before the couples visit the National Archives. Melania Trump said of the unusually personal welcome, “He’s coming on our soil, and we need to welcome them with the most respect.” But there is no joint news conference planned; the governments are expected to issue separate announcements afterward, allowing each to sell the meeting at home on its own terms.

Editor: Nothing says “constructive strategic stability” quite like a military flyover followed by dinner. Superpower diplomacy apparently works best when everybody brings both the good china and the negotiating chips.

Source: Al Jazeera

A federal judge ordered the Trump administration to immediately restore White House press credentials for CNN, MS NOW and Politico, temporarily blocking President Donald Trump’s ban after finding the outlets were likely to succeed on their claim that they were denied constitutionally adequate due process. U.S. District Judge Timothy Kelly, whom Trump appointed to the federal bench, issued a 14-day temporary restraining order covering hard passes revoked from employees of the three organizations.

Trump called it a ban. Judge Kelly called the process constitutionally suspect.

The fight began after Trump announced Friday that he was banning the three organizations from the White House, attacking them as “FAKE NEWS.” The outlets sued, arguing that the administration had violated constitutional protections by stripping their access without adequate notice or an opportunity to respond. Kelly concluded they were likely to prevail on the due-process claim, writing: “None of defendants’ arguments convince the court that plaintiffs are not likely to succeed on their due process claim.”

The administration also argued that national security justified the restrictions, but Kelly wasn’t persuaded by the record before him. He noted that Trump’s original explanation focused on what he considered inaccurate and negative reporting rather than national-security concerns. The judge also questioned the urgency of the ban because some of the reporting cited by the administration dated back months or years and involved what the court characterized as routine journalistic activity. The ruling is temporary, so the larger constitutional fight over White House press access continues.

Ted Boutrous, an attorney representing the outlets, called the decision “a strong ruling vindicating freedom of the press, due process and the rule of law.” For now, CNN, MS NOW, and Politico get their White House access back while the lawsuit moves forward—and the administration will have to defend its broader authority to decide who gets through the gates.

Editor: Getting bench-slapped by your own judicial appointee has to sting a little. Turns out “I don’t like your coverage” and “national security” aren’t automatically interchangeable just because somebody typed the first one in all caps.

Source: UPI

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Chinese entities have sent thousands of shipments of dual-use components to Iran—including roughly 1,300 shipments to its Defense Ministry in the first half of 2026—as President Donald Trump prepares to meet Xi Jinping while trying to preserve his relationship with Beijing. Iranian customs records reviewed by The Wall Street Journal show shipments containing electronics, motors, GPS equipment, and aircraft parts that can be used in drones and missile systems, even as China publicly promotes its efforts to help bring peace to the Middle East.

That leaves Trump with a nasty diplomatic contradiction: the country he wants as a partner in restraining Iran is also Iran’s biggest economic lifeline.

China has become the major buyer of Iranian oil despite U.S. sanctions, while Chinese banks, companies, and financial networks have helped keep money flowing to Tehran, according to the Journal. The military connection is potentially more consequential. U.S. officials have linked satellite imagery obtained from Chinese entities to an Iranian strike that killed three American troops, while Chinese companies have supplied or sought to supply materials useful for Iran’s ballistic missiles and drones. Beijing rejects accusations that it is improperly supporting the conflict, says it regulates dual-use exports, and argues that unilateral U.S. sanctions violate international law.

The supply route has increasingly moved into the air. As the U.S. Navy restricted Iranian maritime trade, Iran’s sanctioned Mahan Air dramatically increased flights between China and Tehran. Iranian customs records reviewed by the Journal showed shipments to Iran’s Defense Ministry accelerating, including more than $6 million in electronics shortly after the June ceasefire. By the first week of September, Mahan Air made 39 flights from China to Iran—double its prewar level. Meanwhile, lawmakers from both parties have pushed Trump to confront Beijing more aggressively. Sen. Elissa Slotkin wrote that there is “a large and growing body of evidence” that Chinese companies are helping Iran sustain its economy and weapons programs.

Trump, however, has publicly resisted portraying Xi as an enabler of Iran. After Defense Secretary Pete Hegseth said China and Russia were enabling Tehran “at different levels,” Trump responded: “I don’t know that they’re enabling,” adding that Xi had assured him China wouldn’t provide weapons. “I trust them,” Trump said of Xi and Vladimir Putin. That tension now follows Xi directly into Washington: Trump wants better relations with Beijing, but members of his own government see Chinese-linked trade, finance, and technology as helping Iran withstand American pressure and continue the conflict.

Editor: Diplomacy gets complicated when the guy across the table is talking peace while companies back home keep filling the other guy’s shopping cart. Trump wanted negotiating leverage with Xi; Iran just handed him a very large receipt.

Source: The Wall Street Journal

Federal immigration agents mistakenly detained and injured a U.S. citizen in Evanston, Illinois, after apparently deciding he resembled a fugitive they were trying to arrest. Local police say five federal agents were searching Sunday for a wanted man when they confronted the unidentified citizen, who refused to provide identification before agents attempted to handcuff him.

They had the wrong man—and by the time they figured that out, he was headed to the hospital.

The citizen told Evanston police that his head, neck, and teeth were injured during the confrontation. DHS said ICE officers conducting a “targeted enforcement operation” encountered someone who resembled their target, gave him lawful commands, and said he refused to cooperate or identify himself. According to local police, a federal agent said the officers released the man after determining he was a U.S. citizen and not the fugitive. Evanston police photographed the man’s injuries at the hospital and are investigating the encounter.

Witness Ryan Garton gave AP a considerably rougher account of what happened. He said he saw an agent pinning the man to the ground with a knee on his back while the man screamed, “I’m a citizen, leave me alone.” Garton said the man’s eye and temple were swollen and his face appeared scraped against the pavement. Store owner Michael Lipson similarly told AP that he watched agents wrestle the man down as he repeatedly said he was a U.S. citizen. DHS said officers offered the man assistance after identifying him and that he refused it.

The episode comes amid heightened scrutiny of federal immigration enforcement and a major expansion of ICE arrests. Nearly 51,000 people were arrested by ICE in August, according to DHS. Illinois officials condemned the Evanston encounter, while Mayor Daniel Biss said local police would continue investigating federal activity in the city.

Editor: If five agents can mistake a guy walking to the pharmacy for their fugitive, wrestle him to the pavement, and only then sort out his identity, perhaps the enforcement operation needed a little more “target” and a little less “operation.”

Source: Associated Press

AT&T says it expects to employ fewer people five years from now as artificial intelligence, automation, and the shutdown of its aging copper network reshape a company that has already cut more than half its workforce over the past decade. CTO Jeremy Legg told WIRED, “We’re not going to have the same headcount in five years as we do today,” as AT&T automates internal processes and shifts its business toward fiber, wireless, and software-defined networks.

This isn’t AT&T experimenting with AI around the edges—it’s rebuilding a 150-year-old company around needing fewer people to run it.

AT&T employed nearly 131,000 people as of June after cutting about 2,100 jobs during the first half of 2026 and roughly 8,000 last year. WIRED reports that maintaining last year’s pace could bring the workforce close to 85,000 by 2030, and a person familiar with the company described that figure as a target—although AT&T disputed it. AI is already being used for customer service, software development, locating potential cell towers, and detecting maintenance problems. As automation expands, WIRED reports that some middle-management and junior developer jobs are expected to disappear.

The transformation isn’t just about AI. AT&T is retiring the copper-wire infrastructure that powered generations of landline telephone and DSL service, replacing physical network hardware with software and pushing customers toward fiber and wireless. The company says moving away from copper has saved 660,000 megawatt-hours of electricity since 2024, enough to power roughly 65,000 homes. CEO John Stankey joked about just how much obsolete metal remains in the ground: “There’s a bunch of copper out there that probably makes AT&T the fifth-largest copper mine in the United States right now, seriously.”

AT&T insists fewer employees doesn’t mean no hiring. Legg says the company will need people to build and govern AI agents, supervise automated systems, and maintain fiber infrastructure. But the mix of jobs is clearly changing as AT&T tries to become what Stankey calls a “dramatically different” company by the end of the decade, built around fiber and a “kickass wireless network.” Employees, meanwhile, are largely back in the office five days a week, where AT&T says it has invested heavily in amenities—including childcare, therapists, and, apparently, one seriously impressive coffee machine.

Editor: Nothing captures the AI workplace transition quite like eliminating thousands of jobs while proudly upgrading the espresso situation. Welcome to the future: fewer coworkers, more fiber, and absolutely spectacular foam.

Source: WIRED

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1. Missouri’s Congressional Map Fight Lands at the Supreme Court—Again

Missouri’s redistricting battle is back at the Supreme Court for a third time, and this time ballots are already going out. Opponents of the Republican-drawn congressional map asked the justices Tuesday night to block its use in November, arguing that an 8th Circuit ruling effectively resurrected relief the Supreme Court had already stayed twice this month. The dispute traces back to Missouri’s 2025 redistricting, a referendum fight that the state Supreme Court said kept the newer map from taking effect, and a subsequent U.S. Supreme Court order blocking a conflicting federal ruling. Challengers argue the 2022 map should govern the general election since officials are already using it, while the state says switching maps again would create administrative chaos. Election-law professor Justin Levitt noted that with voting underway and ballots already distributed, the timing pressure has never been higher. Source: The Washington Sun

2. Rural Voters Still Back Trump More Than America Overall, but the Economy Is Testing That Support

A new AP-KFF poll shows rural voters approving of President Trump at a higher rate than Americans overall, even as many of those same voters say the economy has gotten worse. About half of rural registered voters said conditions are worse than when Trump returned to office, and only about four in ten approve of his handling of the economy, yet his overall approval among rural voters sits at 48%. Roughly three-quarters rated the local cost of living as only fair or poor, with groceries, gas, and healthcare cited as top pressures; about a quarter of rural Republicans said good-paying jobs have declined in their area over the past five years. Healthcare offered little comfort, either, with just 17% saying Trump’s healthcare policies had lowered their costs. Even so, about six in ten rural Republicans credited Trump with improving the national economy. As Ohio teacher Nate Lawrence put it about promises to lower prices, “Trump said that, and it didn’t happen.” Source: Associated Press

3. Trump DOJ Defends White House Ban on CNN, MS NOW and Politico as First Amendment Fight Heads to Court

The Justice Department is defending President Trump’s decision to strip CNN, MS NOW, and Politico of White House access, arguing the outlets published sensitive information and failed to meet standards of professionalism and decorum. The three organizations have sued, alleging the ban violates their First Amendment rights and that revoking credentials without adequate notice violated due process. The DOJ’s Tuesday filing cited coverage of the East Wing bunker, U.S. ammunition stockpiles during the Iran war, Russia sanctions, and the Republican midterm convention, summing up its stance bluntly: “Access to the White House is a privilege—not a right.” The outlets counter that the ban “could not be a more direct assault on the First Amendment,” and note that journalists were denied entry before the White House explained its reasoning. The case echoes the 2018 fight over CNN’s Jim Acosta, and a federal hearing on emergency relief was set for Wednesday. Source: NPR

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4. Trump Meets a Much Stronger China as Xi Arrives in Washington

Chinese President Xi Jinping arrives in Washington this week leading a China with far more economic and technological leverage than it had at his 2017 Mar-a-Lago summit with President Trump. The three-day visit covers trade, technology, Taiwan, and Iran, with China now a bigger competitor in AI, electric vehicles, batteries, robotics, and advanced manufacturing, plus continued dominance in parts of the rare-earth supply chain. That strength coexists with real weaknesses, including soft consumption, local-government debt, a struggling property sector, and elevated youth unemployment. Beijing is signaling both confidence and limits: Chinese Ambassador Xie Feng called Taiwan, human rights, and China’s political system “red lines,” while both governments appear to want to preserve their trade truce rather than reignite an escalation. As former U.S. diplomat Kurt Tong told CNN, “In the economic space, there isn’t really any superior player.” Source: CNN

5. Pete Hegseth Impeachment Fight Gets Pushed Past the Midterms

A House impeachment push against Defense Secretary Pete Hegseth has been delayed until after the November elections after Speaker Mike Johnson ended the chamber’s September session early. Rep. Thomas Massie’s eight articles of impeachment accuse Hegseth of abuses of power tied to the Iran war and alleged strikes on suspected drug smugglers in international waters; because Massie filed it as a privileged resolution, the House would have had to act on it within a limited window had it stayed in session. Johnson said the early adjournment gives members more time to campaign, while Massie argued it simply dodged the vote. Democratic leaders remain noncommittal, with Judiciary Committee ranking member Jamie Raskin saying he is “not a huge fan of pop-up impeachments” and preferring committee scrutiny first. The House returns November 9, when Massie can revive the effort and force the same reckoning lawmakers avoided this month. Source: The Hill

6. “I Am the Code”: Trump’s First Ballroom Architect Raised Fire and Safety Concerns Before Resigning

James McCrery II, the original architect for President Trump’s White House ballroom, resigned in October 2025 after repeatedly warning that early designs lacked adequate emergency exits and fire-containment measures, according to The Washington Post. The Post reports McCrery raised concerns about insufficient exit routes, inadequate protection against a kitchen fire spreading into the event space, and too few restrooms for a venue meant to seat more than 1,300 guests; meeting notes reportedly flagged “Life safety—big concern” shortly before his departure. When McCrery raised the code issue, Trump reportedly replied, “I am the code.” The project’s unusual routing through the White House Executive Residence—rather than an agency like the GSA—and Washington, D.C.’s lack of authority to enforce its building code on federal property add to the ambiguity. The White House disputes any link between McCrery’s exit and safety issues, saying life-safety concerns have been addressed as the design evolved, though later meeting notes reportedly continued to flag the topic, including one saying safety “needs POTUS buy-in.” Source: The Washington Post (no paywall)

From a Supreme Court trilogy to a president who thinks he is the fire code, today’s stories are a reminder that in Washington, nothing ever seems to get settled the first time—or the second.

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Missouri’s Congressional Map Fight Lands at the Supreme Court—Again

Missouri’s redistricting battle returned to the Supreme Court Tuesday night, with opponents of the Republican-drawn congressional map asking the justices to block its use in the November midterms. The Supreme Court has already intervened twice this month, leaving the state’s 2022 congressional districts in place, including in a Sept. 10 order with no noted dissents.

And now ballots are already going out, turning a redistricting fight into an election-calendar mess.

The latest round follows an 8th Circuit ruling reviving the newer map, drawn by Missouri Republicans and reshaping Democratic Rep. Emanuel Cleaver’s Kansas City district. The challengers, People Not Politicians, argue that the appeals court effectively resurrected relief the Supreme Court had already stayed. Missouri officials have argued that switching maps after voters used the newer districts during the August primary creates administrative problems.

The challengers want the 2022 map used for the general election and say election officials are already operating under those districts.

Their lawyers put their argument bluntly: “This Court’s stays are not invitations for a lower court to repackage the same relief and try again.”

Election-law professor Justin Levitt said the timing has become even more difficult because voting has begun and ballots are already being distributed.

The underlying dispute began after Missouri lawmakers adopted new congressional districts in 2025. The Missouri Supreme Court later ruled that a referendum petition challenging the map was valid and that the new districts had not taken effect for the November 2026 general election unless voters approved them. The U.S. Supreme Court subsequently blocked a conflicting federal order requiring the newer map. Now the justices are being asked to intervene again while the election machinery is already moving.

Editor: Missouri has managed to turn “draw some district lines” into a Supreme Court trilogy—and the election calendar isn’t waiting around for the finale.

But guess what’s going to happen? Since ballots have already gone out using the maps SCOTUS prohibited, the Court will let them stand. Just. You. Watch.

Source: The Washington Sun

Rural Voters Still Back Trump More Than America Overall, but the Economy Is Testing That Support

About half of rural registered voters say the economy is worse than when President Donald Trump returned to office, while only about 4 in 10 approve of his handling of the economy, according to a new AP-KFF survey. At the same time, Trump’s overall job approval among rural voters stands at 48%, higher than his approval among U.S. adults overall in separate AP-NORC polling.

That gap is the story: Dissatisfaction with the economy has not translated neatly into dissatisfaction with Trump. Know why? It’s STILL Biden’s fault.

The poll of 2,241 registered voters living in rural areas was conducted Aug. 12-24 and has a margin of sampling error of plus or minus 3 percentage points. About three-quarters rated the cost of living in their communities as only fair or poor. Groceries, gasoline, and healthcare are prominent concerns, and about one-quarter of rural Republicans said there are fewer good-paying jobs where they live than five years ago.

Healthcare isn’t providing much relief in voters’ assessments, either. Just 17% said Trump administration healthcare policies have had a positive effect on their healthcare costs, while 41% said they had no effect and another 41% said they had a negative effect. Nine in 10 said it was extremely or very important for candidates to discuss healthcare costs.

The partisan picture remains complicated rather than simply shifting in one direction. About 6 in 10 rural Republican voters said Trump has improved the national economy (OMG), while 45% said he has improved their local economy. Rural voters also tended to trust their own party more on major issues. As Ohio teacher Nate Lawrence put it when talking about politicians’ promises to lower prices: “Trump said that, and it didn’t happen.”

Editor: Rural voters are delivering a fairly clear message on affordability: Party loyalty may remain durable, but the grocery receipt and gas pump still get a vote in how people judge the economy.

Source: Associated Press

Trump DOJ Defends White House Ban on CNN, MS NOW, and Politico as First Amendment Fight Heads to Court

The Justice Department is defending President Donald Trump’s decision to revoke White House access for CNN, MS NOW, and Politico, arguing that the outlets published sensitive information or falsehoods and failed to meet standards of professionalism and decorum. The three organizations have sued, alleging that the ban violates their First Amendment rights and that revoking their credentials without adequate notice or process violates the Fifth Amendment.

Three newsrooms are locked out, the Justice Department says the president has the authority to do it, and the dispute is now squarely in federal court.

In its Tuesday filing, the Justice Department said Trump concluded that the organizations had failed to maintain “basic minimum standards of professionalism and decorum” and cited publication of sensitive or classified information. The White House pointed to coverage involving the East Wing bunker, U.S. ammunition stockpiles during the Iran war, Russia sanctions, and the Republican midterm convention. The government summed up its position this way: “After all, access to the White House is a privilege—not a right.”

The dispute also includes a due-process question: The outlets say their journalists were initially denied entry and credentials deactivated before the White House sent letters detailing its allegations and provided a process to contest the decision.

The fight follows previous disputes over White House press access, including the 2018 revocation of CNN correspondent Jim Acosta’s credential, which a federal judge temporarily ordered restored. The current case asks the courts to determine whether the administration’s stated security and access-control interests justify its actions or whether the ban amounts to unconstitutional viewpoint discrimination or retaliation. A federal court hearing on the outlets’ request for emergency relief was scheduled for Wednesday.

Editor: The White House says this is about security and professional standards. The news organizations say it’s punishment for journalism the president dislikes. That’s no longer just another Washington argument—it’s a constitutional question with a judge holding the next microphone.

Source: NPR

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Trump Meets a Much Stronger China as Xi Arrives in Washington

Chinese President Xi Jinping comes to Washington this week leading a China that has expanded its technological capabilities, diversified trade, and gained leverage in critical supply chains since his first U.S. summit with President Donald Trump in 2017. The three-day visit comes with trade, technology, Taiwan, and Iran among the issues confronting the two governments.

Nine years later, Washington isn’t negotiating with the same China—and Beijing clearly knows it.

China remains the world’s second-largest economy while becoming a larger competitor in fields including artificial intelligence, electric vehicles, batteries, robotics, and advanced manufacturing. Its leverage also includes dominance in parts of the rare-earth supply chain, which has figured prominently in previous U.S.-China trade confrontations. Still, China’s economic picture is mixed: Weak consumption, local-government debt, property-sector problems, and elevated youth unemployment sit alongside its technological gains.

Xi is signaling limits as well as an interest in stability. Chinese Ambassador Xie Feng declared Taiwan, human rights, China’s political system, and its development path to be “red lines” that Beijing says cannot be challenged. Technology restrictions are another central issue, with Beijing seeking greater predictability while Washington continues weighing national-security concerns surrounding advanced technology.

China’s international standing is changing, too. A July Pew survey found China was viewed more favorably than the United States in most of the 36 countries surveyed, although views varied considerably by country. Meanwhile, both governments have incentives to preserve their trade truce rather than restart an escalation that carries costs for each side. As former U.S. diplomat Kurt Tong told CNN about their economic leverage: “In the economic space, there isn’t really any superior player.”

Editor: The symbolism of this summit may be almost as important as whatever gets signed—Xi is coming to Washington determined to demonstrate that China now negotiates from a different position than it did at Mar-a-Lago in 2017. The meetings will show where that confidence meets actual bargaining power.

Source: CNN

Pete Hegseth Impeachment Fight Gets Pushed Past the Midterms

A House impeachment push against Defense Secretary Pete Hegseth has been delayed until after the November elections after Speaker Mike Johnson ended the House’s September session before lawmakers were required to consider Rep. Thomas Massie’s eight articles of impeachment. Massie’s privileged resolution accuses Hegseth of abuses of power and other misconduct connected to the Iran war and alleged killings of suspected drug smugglers in international waters.

The impeachment fight didn’t disappear—it just got moved to the other side of Election Day.

Johnson said the shortened schedule was intended to give members additional time to campaign, while Massie argued the early adjournment avoided the impending Hegseth vote. Because Massie introduced the articles as a privileged resolution, House rules would have required lawmakers to address them within a limited period if the chamber remained in session. The House is scheduled to return Nov. 9, when Massie could revive the effort.

I bet you could have as much time off as your US House of Representatives do!

Democratic leaders have stopped short of committing their caucus to Massie’s resolution. House Judiciary Committee ranking Democrat Jamie Raskin said impeachment articles should go through the committee and receive scrutiny, saying, “I’m not a huge fan of pop-up impeachments.” Do-nothing Minority Leader Hakeem Jeffries has similarly said Democrats have neither ruled impeachment in nor ruled it out, while Democratic Caucus Chair Pete Aguilar has called for “oversight and accountability” conducted through a deliberative process.

That leaves the House facing essentially the same dispute when members return: Massie can again force attention to his allegations, Republicans can seek to table the resolution, and Democrats will have to decide individually how to respond to the specific measure before them. Whether the matter proceeds to an impeachment vote will depend on those procedural and political decisions after Congress reconvenes.

At least they’ll have a lot of time to “think about it.”

Editor: Congress didn’t settle the Hegseth impeachment question before the election. It settled the scheduling question. November gets the leftovers—and they’re going to be rotten.

Source: The Hill

“I Am the Code”: Trump’s First Ballroom Architect Raised Fire and Safety Concerns Before Resigning

James McCrery II, the first architect chosen for President Donald Trump’s White House ballroom, resigned in October 2025 after repeatedly warning that preliminary designs sought by Trump did not provide adequate emergency exits or fire-containment measures, according to people familiar with the discussions and documents reviewed by The Washington Post. The White House disputes that account, saying it would be “factually false and totally inaccurate” to connect McCrery’s departure to code issues and that life-safety concerns have been addressed as the design evolved.

The Post reports that McCrery raised several specific concerns as Trump pushed for a larger ballroom capable of seating more than 1,300 guests. They included inadequate emergency exit routes, insufficient measures to prevent a kitchen fire from spreading into the event space, and too few restrooms for the proposed occupancy.

White House meeting notes from Sept. 30, 2025, reviewed by the newspaper reportedly included the words “Life safety—big concern.” McCrery resigned weeks later.

The regulatory setup is unusual. Federal law generally requires federal construction projects to comply with nationally recognized safety standards to the maximum extent feasible, but The Post reports that the ballroom project was routed through the White House Executive Residence (by the way, watch The Residence on Netflix—it’s SO GOOD) rather than agencies such as the General Services Administration. Washington, D.C., meanwhile, does not enforce its local building code on federal property. The general contractor, Clark Construction, told The Post that it follows applicable building codes and life-safety requirements. The White House says the current architects and consultants are likewise designing according to nationally recognized standards.

Documents reviewed by The Post indicate that life-safety discussions continued after McCrery left. Notes from a Nov. 6 meeting reportedly said, “Life safety—needs POTUS buy in.” The newspaper said it could not determine from the records it reviewed whether all of McCrery’s concerns were resolved in later designs.

Editor: “I am the code” is one hell of a sentence to emerge from a meeting about fire exits. The White House says safety requirements are being followed; The Post’s reporting says the architect who first raised those concerns walked away. Either way, somebody please keep the exits clearly marked.

Source: The Washington Post (no paywall)

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World diplomacy is having its messiest year in decades, and it’s all converging on New York this week. World leaders are gathering at the UN General Assembly as wars spread in Europe and the Middle East, alliances shift, and the international order grows more unpredictable. Secretary-General António Guterres called it an era of “deep uncertainty,” and diplomats interviewed by AP described the UN as sitting at an inflection point, where attacks on international law, stalled mediation, and disagreement over climate and security dominate the agenda. Much of the real work, officials say, will happen away from the microphones. Source: AP News

Back home, President Trump’s approval has slipped to 29%, and the economic picture behind that number is even bleaker. American Research Group’s September survey found just 26% approve of his handling of the economy, while 72% say conditions are getting worse and 67% believe the country is already in a recession. Even among Trump’s own approvers, 56% expect both the national economy and their household finances to worsen over the next year, a striking crack of pessimism inside his own base. Source: American Research Group

Iran, meanwhile, has floated an offer that could ripple through energy markets worldwide. Tehran says it could reopen the Strait of Hormuz within seven days if Washington eases military pressure and lifts its blockade on Iranian ports, a proposal that surfaced as Presidents Trump and Pezeshkian both attend the UN General Assembly. Oil fell more than 2% on the news, and Gulf states are pushing for a broader security framework, though officials caution this is an offer to negotiate, not a finished deal. Source: Reuters

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Flock Safety, the license-plate surveillance company once valued above $8 billion, is now paying its own employees to leave. Facing lost government contracts, camera vandalism, and sustained criticism over privacy and alleged misuse of its technology, Flock has opened a voluntary buyout program ahead of an October 2 deadline. Ninety-three city and county governments cut ties with the company in August alone, and CEO Garrett Langley admitted the backlash has badly damaged internal morale even as Flock pushes to expand its AI-powered surveillance tools. Source: WIRED

At the pump, diesel just hit a record $6.51 a gallon, and Senate Republicans can’t agree on what to do about it. Farm-state senators like Chuck Grassley are pushing for export restrictions to keep more fuel at home, while oil-state senators like John Cornyn call that idea a “gimmick” that could create regional shortages instead of solving the problem. Diesel has climbed nearly $3 a gallon since the U.S.-Israel strikes on Iran began, and Senate Majority Leader John Thune says reopening the Strait of Hormuz would be the real fix. Source: The Hill

And in Taiwan, Xi Jinping appears to be betting that political pressure can succeed where military pressure has not. A senior Taiwanese official told The Wall Street Journal that Beijing views Trump’s unpredictability as a “rare window of opportunity” to shift Taiwanese public opinion, combining military pressure with outreach to the opposition KMT and an intensifying disinformation campaign that identified 45,000 suspected fake accounts in 2025 alone. Xi is expected to press Trump on Taiwan when the two meet in Washington this week, even though support for unification in Taiwan remains below 8%. Source: The Wall Street Journal

From a fraying UN to a record fuel bill to a surveillance company paying people to walk away, today’s news makes one thing clear: nobody, anywhere, is operating from a position of total certainty right now.

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World Leaders Descend on the UN as Wars Spread and the Global Order Gets Messier

World leaders are arriving at the United Nations General Assembly amid escalating wars in Europe and the Middle East, economic uncertainty, and a shifting international order that diplomats say has become even less stable over the past year. The annual gathering begins Tuesday in New York with conflicts, climate risks, artificial intelligence, and the (in)effectiveness of international diplomacy crowding the agenda.

The uncomfortable question hanging over the whole thing: Can the United Nations still solve major international problems when its members increasingly can’t agree on what the problems are? It’s not like they’ve been super successful in the past, even with an agreeable US President…

U.N. Secretary-General António Guterres summed up the moment: “World leaders will be gathering at the United Nations in an era of deep uncertainty.” He added that global power is shifting and international institutions need to change with it. The backdrop includes the continuing Russia-Ukraine war and the widening Middle East conflict, with diplomats also confronting maritime security concerns and the rapid development of artificial intelligence.

Former U.S. Ambassador Robert Wood told the AP that diplomacy still has an opening, but described the institution as being at an “inflection point.” Officials interviewed by AP pointed to attacks on international law, stalled mediation efforts, and persistent disagreements over climate, peace, and security. Beyond the headline speeches from President Donald Trump, Ukrainian President Volodymyr Zelenskyy, and Iranian President Masoud Pezeshkian, much of the consequential work may happen in meetings away from the microphones.

Governments still have interests to protect, of course. The trick is aligning enough of them to prevent what Kajzer called “permanent conflict”—which is a considerably tougher assignment than issuing another carefully worded communiqué.

Editor: The U.N. was built around getting countries into the same room. In 2026, getting them into the room remains the easy part.

Source: AP News

Trump Approval Falls to 29% as Americans Sour on the Economy

President Donald Trump’s job approval stands at 29%, with 68% disapproving, according to American Research Group’s September 2026 national survey. His rating on handling the economy is lower: 26% approve and 71% disapprove. Both measures slipped from August, when overall approval was 30% and economic approval was 28%.

The economic numbers are particularly bleak: Just 5% say the economy is getting better, while 72% say it’s getting worse. Only 6% expect the national economy to be better a year from now, compared with 70% who expect it to be worse. And 67% of respondents say they believe the country is currently in a recession—an assessment of public opinion, not an official determination that a recession exists.

The pessimism crosses an interesting political line. Among people who approve of Trump’s overall job performance, 56% nevertheless expect the national economy to be worse a year from now. The same 56% say they expect their own household financial situation to be worse. Among Republicans, 63% approve of Trump’s handling of the economy; among independents, that figure is 19%, while 75% disapprove.

Household finances look equally grim in the poll. Only 18% rate their household financial situation as excellent, very good, or good, while 75% rate it bad, very bad, or terrible. Just 3% say their finances are getting better, versus 71% who say they’re getting worse. A year ago, in September 2025, 41% rated their household finances positively and 55% negatively, according to ARG’s historical results.

The survey was conducted September 16-20 among 1,100 adults in the continental United States and carries a theoretical margin of error of ±3 percentage points when opinion is evenly divided. As with any individual poll, it is a snapshot based on one organization’s methodology rather than a definitive measurement of public opinion.

Editor: The politically awkward number here isn’t merely 29%. It’s that 56% of Trump approvers themselves expect both the national economy and their household finances to be worse a year from now. That’s not an opposition talking point—it’s what respondents who approve of the president told the pollster.

Source: American Research Group — And the guy thought a 24x7 Trump TV was a great idea

Iran Offers to Reopen Strait of Hormuz as US Talks Get a New Opening at the UN

Iran and the United States are signaling that negotiations could restart as President Donald Trump and Iranian President Masoud Pezeshkian attend the U.N. General Assembly, with Tehran offering to reopen the Strait of Hormuz within seven days if Washington meets specified conditions. A senior Iranian official told Reuters there are no plans for Trump and Pezeshkian to meet directly, but said Iran’s delegation has authority to revive negotiations.

That matters well beyond the negotiating table: Before the current conflict, roughly one-fifth of the world’s daily crude oil and liquefied natural gas supply moved through Hormuz. Iran’s conditions include easing U.S. military pressure and lifting the American blockade on Iranian ports. Secretary of State Marco Rubio, meanwhile, said Washington remains open to talks if they have a prospect of producing a positive result.

The diplomatic opening comes after an interim agreement collapsed in July, and both sides are still publicly staking out hard positions. Iran’s parliament speaker Mohammed Baqer Qalibaf said Tuesday that Iran would not surrender to U.S. pressure, while Rubio reiterated Washington’s opposition to Iran obtaining nuclear weapons. So, yes, there’s a negotiating window—but nobody has exactly started ordering the celebratory champagne.

Trump is also meeting with leaders from Saudi Arabia, the United Arab Emirates, Qatar, Oman, Bahrain, and Kuwait as Gulf governments seek restored shipping through Hormuz. Reuters reports that Qatar has proposed a broader security framework that would include Iran and the Arab Gulf states, with Iran reviewing the proposal. Meanwhile, Saudi Arabia has restarted its East-West Pipeline, an alternative export route that bypasses Hormuz, providing some additional breathing room for energy markets.

Markets noticed. Oil fell more than 2% Tuesday to a two-week low following Iran’s Hormuz proposal and the Saudi pipeline restart. The diplomacy remains conditional, the military conflict continues, and no Trump-Pezeshkian meeting is scheduled—but after months of escalation, Washington and Tehran are at least publicly talking about talking again.

Editor: When reopening one narrow strip of water can move oil prices around the planet, “let’s talk” suddenly becomes considerably more persuasive. For now, though, this is an offer to negotiate—not a peace deal, ceasefire, or open Strait.

Source: Reuters

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Flock Safety Offers Employee Buyouts as Backlash Hits Its Surveillance Business

Flock Safety has opened a voluntary separation program for employees, offering what it calls its most generous severance package yet as the license-plate surveillance company faces lost contracts, rising expenses and sustained criticism over privacy and alleged misuse of its technology. Employees have until October 2 to apply, and Flock expects to approve most requests, according to an internal email obtained by WIRED.

For a startup valued at more than $8 billion earlier this year, paying employees to leave is a notable turn in the story.

Flock employs roughly 1,500 people, and sources told WIRED they believe a significant number could apply for the program. The company reportedly described the package as roughly twice as generous as previous severance offers, with some employees receiving offers worth tens of thousands of dollars, several months of health coverage and two years to exercise stock options. Accepted employees are expected to find out October 9, with most departures scheduled by October 29.

The buyouts come as Flock’s nationwide network of automated license-plate readers faces intensifying scrutiny. WIRED has reported allegations of officers using the system to track former romantic partners and colleagues, broad sharing of Flock data among agencies, and questions about what its cameras collect. An advocacy group identified 93 city and county governments that ended relationships with Flock in August alone, while WIRED reports that contract losses could leave the company short of revenue targets. Flock has also faced added costs from vandalism targeting its cameras.

CEO Garrett Langley recently said the backlash has particularly affected employees: “The biggest damage” has been “internal morale.”

Flock, meanwhile, is expanding beyond license-plate readers into AI-powered investigative tools capable of searching data and camera feeds for people and patterns of movement. That makes the company’s current predicament especially consequential: Flock is trying to expand what its surveillance technology can do at the same time some communities, customers, and employees are reconsidering their relationship with it.

Editor: Nothing complicates an $8 billion valuation quite like customers walking away, cameras getting vandalized, and employees being offered money to head for the exits. Flock calls it “greater agency” for workers. The next few weeks should provide a pretty good head count on how many decide to exercise it.

Source: WIRED

Diesel Hits a Record $6.51 as Republicans Clash Over an Export Ban

National diesel prices reached a record $6.51 a gallon Monday, prompting Republican senators from agricultural states to push for restrictions on U.S. diesel exports in hopes of increasing domestic supplies and lowering prices. Sen. Chuck Grassley of Iowa has publicly called for an embargo, while Senate Majority Leader John Thune said an export ban makes more sense to him than temporarily suspending the federal gasoline tax.

Diesel averaged $3.52 before the U.S.-Israel strikes against Iran—meaning the national average has risen nearly $3 a gallon during the ensuing conflict, according to The Hill. Grassley wrote that high diesel prices “ARE KILLING FARMERS INCOME,” while Rep. Ashley Hinson called for pausing diesel exports, suspending the gas tax, and easing restrictions on higher-ethanol fuel. The Hill reports that higher fuel and fertilizer costs, combined with trade pressures on agricultural commodities, have increased economic concerns in farm states.

But Republicans representing major energy-producing states are pushing in the other direction. Texas Sen. John Cornyn called the export proposal a “gimmick,” while Alaska Sen. Lisa Murkowski questioned whether restricting exports would “move the needle.” American Petroleum Institute CEO Mike Sommers argues that because much U.S. diesel production is concentrated along the Gulf Coast while other regions depend on imports, an export restriction could create regional supply imbalances rather than broadly reducing prices.

Thune said reopening the Strait of Hormuz would be a preferable solution. The Hill reports that Iranian threats have reduced traffic through the crucial energy corridor, while Agriculture Secretary Brooke Rollins discussed diesel prices with Trump on Monday. Wyoming Sen. John Barrasso said the administration is considering several options and pointed to the complexity of U.S.-Canadian fuel trade. South Dakota Sen. Mike Rounds, meanwhile, suggested restoring refinery capacity in California as another approach.

The argument revives a debate Washington knows well: The United States maintained restrictions on crude-oil exports from 1975 until Congress lifted them in 2015 following the domestic shale-production boom. Today’s dispute is essentially over whether keeping more fuel at home would actually lower American prices or merely disrupt an interconnected energy market. For now, it remains a proposal rather than enacted policy.

Editor: Nothing gets Washington brainstorming like $6.51 diesel. The farm-state solution is “keep more here,” the oil-state response is “that won’t work,” and everyone appears to agree that reopening Hormuz would make this particular argument considerably less urgent.

I mean, Trump could surrender and things may go “back to normal.”

Source: The Hill

Xi Sees an Opening on Taiwan as Trump’s China Summit Approaches

Chinese leader Xi Jinping sees President Trump’s second term as what a senior Taiwanese official calls a “rare window of opportunity” to shift public opinion in Taiwan toward Beijing, according to The Wall Street Journal. China is combining military pressure with political outreach, online influence campaigns, and closer engagement with Taiwan’s opposition Kuomintang, or KMT.

The strategy isn’t simply to threaten Taiwan—it’s to convince its 23 million people that resisting Beijing is ultimately futile. Taiwan’s Mainland Affairs Council Minister Chiu Chui-cheng told the Journal that Beijing believes Trump’s unpredictability regarding U.S. commitments gives Xi additional room to operate. A Brookings Institution poll cited by the Journal found only 24% of Taiwanese voters regarded the United States as a trustworthy ally. At the same time, U.S.-Taiwan military cooperation has become more public, including acknowledgment of American military training on the island.

China is also cultivating KMT chairwoman Cheng Li-wun, who traveled to the mainland in April and met Xi. The Journal reports that Chinese officials and KMT negotiators discussed language for the trip beforehand, and Cheng provided prepared remarks opposing Taiwanese independence in advance.

Cheng has defended closer engagement with Beijing, saying, “Why can’t I choose both? Why must I choose a side?”

The KMT says its approach is intended to preserve cross-strait peace while protecting Taiwan’s democracy and way of life.

Then there’s the information war. Taiwan’s National Security Bureau says Beijing conducted an “all-out” cognitive-warfare campaign using online platforms and fake websites, identifying 45,000 suspected accounts in 2025 compared with about 28,000 in 2024. Taiwanese officials have also accused China of using deepfakes and AI-generated material to undermine the governing Democratic Progressive Party and spread doubts about whether Washington would stand by Taiwan. Beijing has long denied involvement in disinformation campaigns.

Xi is expected to raise Taiwan when he meets Trump in Washington this week. According to Chinese policy advisers cited by the Journal, Beijing wants Trump to state clearer opposition to Taiwanese independence. But China faces a substantial obstacle inside Taiwan itself: Long-running polling cited by the Journal puts support for unification below 8%. So Beijing’s approach appears to be less about demonstrating that Taiwanese voters already want unification and more about changing the political environment in which they make that choice.

Editor: Beijing’s apparent calculation is straightforward—if Taiwanese voters won’t embrace unification, make them question whether the alternative is sustainable. The unanswered question is whether that campaign persuades people—or reminds them exactly why they distrust Beijing in the first place.

Source: The Wall Street Journal (no paywall)

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Buckle up, because today’s rundown moves from a bloody encounter on an Austin street to a courtroom fight over press freedom, a billionaire tax brawl in California, a widening war around one of the world’s most important shipping lanes, a quietly expanding deportation machine, and a debt bill coming due for America’s apartment landlords.

Federal Immigration Officer Shoots Venezuelan Man in Austin as DHS Opens Investigation. The Department of Homeland Security is investigating after a federal immigration officer shot and wounded Wilber Rafael Garces Perez, a 28-year-old Venezuelan man, during an enforcement operation in Austin. His attorney says he called his wife in pain from inside his car after being shot, and Austin officials, including the mayor and a local congressman, are demanding transparency about what happened. The core question of what prompted the gunfire remains unresolved as the investigation continues. Source: NPR

CNN, MS NOW and Politico Sue Trump Administration Over White House Press Ban. All three outlets say the administration revoked their reporters’ credentials without notice after President Trump objected to their coverage, and they are now suing over alleged First Amendment and due-process violations. The lawsuit argues the White House engaged in viewpoint discrimination, and the fight escalated further when CNN was pulled from its White House pool duties. The case will test how much control a president can exert over which news organizations get access based on their reporting. Source: AP News

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Nobel Economists Back California’s 5% Billionaire Tax as November Fight Heats Up. Six Nobel Prize-winning economists have endorsed Proposition 40, a California ballot measure that would impose a one-time tax on billionaires’ wealth to fund healthcare and public programs. Opponents, including a major Silicon Valley figure financing a nine-figure campaign against it and Governor Gavin Newsom himself, warn the tax could drive wealthy residents out of state. Polling shows voters split nearly down the middle heading into a very expensive November campaign season. Source: Financial Times

Houthis Push for Strategic Yemen Heights as Trump Reportedly Calls Off U.S. Airstrikes. Iran-aligned Houthi forces are fighting to seize strategic highlands near the Bab al-Mandab Strait, even as reports suggest President Trump called off planned U.S. airstrikes against the group at the last minute. The fighting has displaced tens of thousands of people and is rattling global oil markets, forcing Saudi Arabia to reroute massive oil shipments through the already-strained Strait of Hormuz. Washington, for now, remains on the sidelines of a conflict tangled up with two of the world’s most critical waterways. Source: Reuters

Trump Administration Pledges $410 Million for Global Third-Country Deportation Network. The administration has committed hundreds of millions of dollars to strike deals with dozens of countries willing to accept migrants deported from the U.S. who have no prior connection to those nations. A State Department unit historically focused on refugee resettlement is now coordinating the removals, and a federal appeals court has already ruled the underlying policy unlawful for failing to give deportees adequate notice. What was once an obscure diplomatic corner has become a defining piece of the administration’s immigration strategy. Source: The Washington Post

Apartment Landlords Face a $1.8 Trillion Debt Reckoning as Cheap-Money Loans Come Due. U.S. apartment owners are staring down more than a trillion dollars in loan maturities over the next decade, much of it borrowed when interest rates were near zero and now needing refinancing at far higher rates. Delinquencies are climbing, property values have fallen sharply from their 2022 peak, and even major investors have defaulted on multifamily loans. For some landlords it’s a crisis; for cash-rich investors circling distressed properties, it’s shaping up to be a buying opportunity. Source: The Wall Street Journal

From a shooting with no clear answers yet to a debt wall landlords can’t refinance their way out of, today’s news makes one thing obvious: the fights over accountability, money, and power are only getting louder.

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Federal Immigration Officer Shoots Venezuelan Man in Austin as DHS Opens Investigation

The Department of Homeland Security is investigating the shooting of 28-year-old Wilber Rafael Garces Perez, a Venezuelan man who was wounded by a federal immigration officer during an enforcement operation in Austin, Texas. Garces Perez was reported in stable condition Monday and remained in federal custody pending removal, according to DHS.

What led a federal officer to open fire still has not been publicly established—and that’s the rather important part.

Garces Perez’s attorney, Kate Lincoln-Goldfinch, said he called his wife after being shot inside his car and was yelling in pain. She said his wife had been unable to get information about his condition at the hospital. Austin Councilmember Mike Siegel said he saw at least two bullet holes in the passenger side of the vehicle. Reporting from the scene also documented protests following the shooting.

Austin Mayor Kirk Watson said he was angry and disappointed about the shooting, while Rep. Greg Casar, D-Texas, called for an independent investigation. Casar said, “We can see the lies with our own eyes. We will demand truth, transparency, and accountability.” His accusation referred to previous DHS accounts of immigration-enforcement shootings; it is his characterization, and the circumstances of Sunday’s Austin shooting remain under investigation.

The incident follows other fatal encounters involving immigration officers in Texas, including the July killing of Lorenzo Salgado Araujo in Houston. Investigations into that shooting remain ongoing. With the Austin case now under investigation, the central facts—including what happened immediately before the officer fired—have yet to be publicly established.

Editor: There are plenty of political speeches available already. What Austin needs now is considerably less spin and considerably more evidence.

Source: NPR

CNN, MS NOW, and Politico Sue Trump Administration Over White House Press Ban

CNN, MS NOW, and Politico said Monday they are filing a lawsuit against the Trump administration after the White House revoked their journalists’ credentials, alleging that the government violated their First Amendment and due-process rights because President Donald Trump objected to their reporting. Reporters from the three organizations were denied entry Saturday after Trump announced Friday that he was barring the outlets over coverage he described as “fake news.”

This has moved beyond another Trump-versus-the-media argument—the courts are now being asked whether a president can deny White House access to news organizations because he objects to their coverage.

The outlets said their reporters’ credentials were revoked “without notice or process.” In their joint statement, they said they were suing “to protect our First Amendment rights and defend the principle that the government does not decide what the press reports or publishes.” The White House had not immediately responded to AP’s request for comment early Monday.

The lawsuit alleges that the administration engaged in unconstitutional “viewpoint discrimination” by excluding the organizations based on their reporting. The White House Correspondents’ Association also called for the outlets’ access to be restored, with president Jacqui Heinrich warning that a standard used against one organization because of its coverage could eventually be applied to others.

The dispute escalated further Monday when CNN was removed from its White House pool duties. The lawsuit will put the administration’s justification for the bans before a federal court and test the constitutional limits on restricting journalists’ access to the White House based on the content of their reporting.

Editor: The First Amendment doesn’t guarantee reporters unlimited access to the president. The lawsuit now asks a more specific question: Whether the government can pull credentials because it dislikes what those reporters publish. That’s one for a judge, not a press secretary, to sort out.

Source: AP News

White House TV Pool Will Not Cover Trump. That, interestingly, includes Fox News. Let’s see how long that lasts…

Nobel Economists Back California’s 5% Billionaire Tax as November Fight Heats Up

Six Nobel Prize-winning economists—including Joseph Stiglitz, Peter Diamond, Daron Acemoglu, Abhijit Banerjee, Esther Duflo, and Paul Krugman—have endorsed Proposition 40, California’s November ballot measure imposing a one-time tax of up to 5% on certain taxpayers with assets exceeding $1 billion. Supporters say the money would help fund healthcare and other public programs, while opponents argue the measure could drive wealthy residents out of California and reduce other tax revenue.

California voters aren’t just deciding whether to tax billionaires—they’re stepping into a very expensive argument over whether billionaire wealth itself should become a new source of state revenue.

The proposal was developed with help from economists who have advocated wealth taxes and was sponsored by a healthcare union seeking revenue in response to federal spending cuts.

Opponents include prominent Silicon Valley figures, with Google co-founder Sergey Brin financing a campaign against Proposition 40, according to the Financial Times. Opponents contend the tax could encourage wealthy taxpayers to leave California and ultimately cost the state revenue. Gov. Gavin Newsom also opposes the state-level proposal, arguing that wealth taxation should instead be pursued nationally.

The race remains close. A September Public Policy Institute of California survey found a slim majority of likely voters saying they would vote yes on Proposition 40, with most of the rest opposed and a small share undecided after respondents were read the ballot title and label. PPIC notes that the initiative could temporarily generate substantial revenue while potentially reducing annual income-tax revenue from billionaires. Those estimates—and the competing economic arguments—will now get their ultimate California treatment: Millions of dollars in advertising between now and Election Day.

Editor: Proposition 40 has economists arguing about growth, billionaires spending fortunes fighting a billionaire tax, and voters sitting almost evenly divided.

Source: Financial Times

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Houthis Push for Strategic Yemen Heights as Trump Reportedly Calls Off U.S. Airstrikes

Iran-aligned Houthi forces pushed Monday to capture strategic highlands in Yemen that could strengthen their position around the Bab al-Mandab Strait, while the New York Times reported that President Donald Trump called off planned U.S. airstrikes against the group at the last minute. Reuters said it could not independently verify the report; U.S. Central Command referred questions to the White House, which had not responded to Reuters at publication time.

The geography here matters enormously: The Houthis are fighting around one of the world’s most important shipping chokepoints while another critical oil route, the Strait of Hormuz, is already under severe wartime pressure.

Yemeni military sources told Reuters that Houthi forces were trying to seize the Kahboub Mountains in Taiz and Lahij provinces, potentially helping them protect recently captured positions near the Bab al-Mandab and open additional fronts against Saudi-backed forces. Hundreds have been killed in the latest fighting, tens of thousands have been displaced within Yemen, and thousands more have fled across the Red Sea, according to figures cited by Reuters from the United Nations.

The escalation is also squeezing energy markets. Saudi Arabia has sharply increased oil shipments through Hormuz after disruptions to its Red Sea export route, with satellite data cited by Reuters showing a dramatic jump in flows through the strait in recent days. Brent crude has retreated after nearing multi-year highs last week, but U.S. diesel prices climbed sharply Monday.

Trump also spoke Sunday with Rashad al-Alimi, president of Yemen’s internationally recognized, Saudi-backed government. Sources told Reuters that al-Alimi requested U.S. support, but Trump made no direct commitment of military assistance. For now, Washington remains outside the renewed Saudi-Houthi fighting even as the battle moves closer to waterways carrying a significant share of global trade and energy supplies.

Editor: Whatever happened inside the White House before those reported strikes were halted remains unconfirmed. What’s plainly visible is the map: Houthis, Saudi forces, oil routes, and two strategic straits are now tangled together in a conflict where a few miles of Yemeni mountains can have consequences thousands of miles away.

Source: Reuters

Trump Administration Pledges $410 Million for Global Third-Country Deportation Network

The Trump administration has authorized or pledged at least $410 million for agreements with dozens of countries—mostly in Africa and Latin America—to accept migrants deported from the United States despite having no prior connection to those countries, according to internal government records reviewed by The Washington Post. The effort is being coordinated through a small State Department unit called the Office of Remigration, housed inside the Bureau of Population, Refugees, and Migration. This is part of Project 2025.

A bureau historically associated with helping refugees resettle is now helping arrange where deportees will land—the organizational chart has taken quite a turn.

The Post reports that the commitments include direct payments to foreign governments as well as substantial funding for the International Organization for Migration and the U.N. Refugee Agency, with additional funds going elsewhere. The international organizations told The Post they do not negotiate or participate in U.S. deportation decisions; the administration says third-country removals are necessary for people with final removal orders who cannot be returned to their home countries.

The administration has deported thousands of people to numerous third countries, according to the Post’s analysis of several independent data sources, with the majority going to Mexico. Critics, including immigration attorneys, contend the arrangements can expose migrants to mistreatment or eventual return to countries where they fear persecution. On September 18, a federal appeals court ruled the administration’s third-country deportation policy unlawful in a class-action case, finding that deportees had not received sufficient notice and an opportunity to make fear-based claims regarding their destinations.

The administration defends the program as a way to remove people who have no legal right to remain in the United States when their countries of origin will not accept them or when deportees have asked not to return there. The Post’s investigation, part of a collaboration involving more than two dozen news organizations, found the new system has expanded into a worldwide network of negotiations, financial incentives, and deportation flights—and turned a relatively obscure corner of the State Department into a significant part of the administration’s immigration strategy.

Editor: Whatever one thinks of the immigration policy, hundreds of millions of dollars and negotiations with dozens of countries aren’t bureaucratic housekeeping. The administration has built an international deportation infrastructure, and now the courts, Congress, and the public get to examine how it operates.

Source: The Washington Post (no paywall)

Apartment Landlords Face a $1.8 Trillion Debt Reckoning as Cheap-Money Loans Come Due

U.S. apartment owners face more than $1.8 trillion in debt maturities over the next decade, as loans made during the era of ultra-low interest rates increasingly must be refinanced at much higher rates. A substantial share comes due in 2026 alone, following a record year for maturities last year, according to Mortgage Bankers Association figures cited by The Wall Street Journal.

The apartment boom was built partly on 3% money; refinancing around 6% has a nasty way of changing the math.

Multifamily properties became a darling of commercial real estate during the pandemic as rents surged and investors piled into apartments while offices, hotels, and retail properties struggled. Then developers built aggressively, particularly in Sunbelt markets such as Phoenix, Denver, Atlanta, and Austin. More supply, slower rent growth, and higher borrowing costs have left some owners facing losses, restructuring debt, or handing properties back to lenders.

As Newmark’s Mike Wolfson put it: “There was a sense of relative euphoria. But things turned very quickly.”

The stress is becoming harder to postpone. Delinquencies on multifamily loans packaged into commercial mortgage-backed securities have climbed sharply over the past few years, according to a Morgan Stanley report cited by the Journal. Apartment values are also well below their 2022 peak, according to Green Street. Even major investors have been caught up in the squeeze: Blackstone defaulted in June on a loan tied to a North Dallas apartment property it purchased in 2021.

Distress can eventually reach renters through higher fees, attempted rent increases, or reduced maintenance as landlords try to cut costs. Meanwhile, investors with plenty of cash see an opportunity: Cityview CEO Sean Burton told the Journal his firm is buying properties from lenders again and recently secured a newly renovated Dallas-area apartment complex at a steep discount. In other words, one landlord’s refinancing nightmare can become another investor’s clearance aisle.

Editor: Cheap debt made everybody look clever when rates were 3%. At 6%, the spreadsheet starts remembering who actually bought the building at the top of the market.

Source: The Wall Street Journal (no paywall)

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Rate Hikes, Roommates, and Rip-Off Pump Prices

Buckle up, because today’s stories range from central banking to a genuinely bizarre Capitol Hill roommate situation.

The Bank of Japan just raised its policy rate to 1.25 percent, the highest level since 1995, and the yen responded by getting weaker anyway. The 7-2 decision came just three months after the BOJ’s last hike, with two Takaichi-appointed reflationists dissenting even though nearly 90 percent of economists correctly called both the hike and the dissenters. The bank says it’s trying to stabilize inflation “around 2 percent” without letting it overshoot, but with the yen sliding to 156.64 per dollar and bond yields falling, Governor Kazuo Ueda is threading an unusually small needle between taming prices, supporting the currency, and not choking off growth. Source: CNBC

Homeland Security Secretary Markwayne Mullin has reportedly shared a $1.8 million Capitol Hill townhouse for three years with Rep. Jason Smith, the Ways and Means Committee chairman, and nobody involved will say how much rent changes hands. Mullin owns the property and is described as Smith’s landlord, but there’s no public documentation of a rent transaction, which matters because House rules treat below-market rent as a potential gift. The two are longtime friends who’ve bonded over early workouts, and the living arrangement itself isn’t scandalous—roommates happen in Washington. The real question is whether market-rate rent is actually being paid, especially given that Smith’s committee has jurisdiction touching parts of the department Mullin runs. Source: Daily Mail

ICE officer Christian Castro finally made his first Minnesota court appearance this week, months after a shooting that has scrambled the official version of events more than once. Minnesota alleges Castro fired through a front door in January, hitting a fleeing Venezuelan man, Julio Sosa-Celis, with the bullet continuing into a child’s bedroom wall. Federal charges against Sosa-Celis were later dropped after the Justice Department acknowledged officers, including Castro, gave untruthful statements. Castro spent three months in Texas custody while Minnesota fought for extradition, a fight that escalated into a lawsuit against Governor Greg Abbott before ultimately being dismissed. Castro’s attorney says he’ll plead not guilty to both state and federal charges, with his next Minnesota hearing set for November 3. Source: NPR

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The Trump administration is weighing at least a dozen data center projects across roughly 17,600 acres of federal land in six Western states, and some local officials say they didn’t even know the proposals existed. The push follows a July 2025 executive order directing agencies to speed up permitting for data-center infrastructure on federal land. The biggest proposal, from nuclear startup Valar Atomics, would pair a 10,200-acre Utah data center with small nuclear reactors, while Idaho’s Rhea Data has proposed a 4-million-square-foot facility across 3,226 acres. Environmental groups are already raising alarms about electricity rates, water use, and the precedent of handing industrial-scale computing operations a foothold on public land, even as the Bureau of Land Management insists every project will face environmental review. Source: The Washington Sun

Gasoline is already averaging $4.44 a gallon nationally and diesel has hit $6.40, and analysts warn the pain from damaged Saudi oil infrastructure is likely to stretch on for weeks. Three pumping stations along Saudi Arabia’s critical East-West pipeline were damaged, compounding disruptions from the U.S.-Iran war, and experts say full repairs could take five to six weeks even as the Trump administration suggests a faster timeline. The Midwest is getting hit especially hard, with an Exxon refinery outage near Chicago pushing prices up more than 20 cents overnight in several states. Diesel may be the bigger long-term worry, since record trucking fuel costs tend to ripple into the price of nearly everything shipped by road, and Washington’s talk of restricting diesel exports may not solve the underlying shortage. Source: The Washington Post

A federal jury has convicted CBP officer Luis Uribe on all charges for using his badge and government-issued gun to rob and sexually assault women at Chicago-area hotels in 2022. Prosecutors said Uribe, who worked at O’Hare International Airport, entered the rooms of four women—all of Chinese descent—on at least six occasions, robbing them and sexually assaulting or attempting to assault each one. Uribe testified he never robbed anyone and claimed the encounters were consensual, but the jury rejected that defense entirely. He faces a mandatory minimum of seven years and a possible life sentence at his January 2027 sentencing, while CBP says he remains employed pending further action. Source: The New York Times

From central bank surprises to a courtroom reckoning for a federal officer, today’s stories are a reminder that the people and institutions meant to hold the line are just as capable of crossing it—or fumbling the response when they do.

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Bank of Japan Hikes Rates to 1.25%, Highest Level Since 1995

The Bank of Japan raised its policy rate by 25 basis points to 1.25%, its highest level since 1995, accelerating a tightening campaign aimed at keeping inflation from getting away from policymakers. The move came just three months after the BOJ’s previous hike, compared with a six-month gap before that, as Japan wrestles with inflation, a historically weak yen, and growing pressure to normalize monetary policy.

Japan spent decades trying to manufacture inflation. Now the BOJ is raising rates to make sure it doesn’t manufacture too much of it.

The decision passed 7-2, with board members Toichiro Asada and Ayano Sato dissenting. Both were appointed earlier this year by Prime Minister Sanae Takaichi and are viewed as reflationists. The hike itself was hardly a curveball: Nearly 90% of economists surveyed by CNBC expected a quarter-point increase and respondents even correctly anticipated who would dissent.

The BOJ said it acted because of the risk that inflation could move above its 2% target, adding that it wants to stabilize underlying inflation at “around 2%” without allowing price increases to overshoot and damage the economy later. August headline inflation was 1.9%, while core inflation slipped to 1.7% from 1.8% in July. Asada argued those numbers justified holding rates steady, while Sato said economic and price conditions had not substantially accelerated. Meanwhile, Washington has pushed Tokyo toward tighter policy, with U.S. Treasury Secretary Scott Bessent recently urging BOJ Governor Kazuo Ueda to take “decisive market and monetary steps.”

Of course, all while Trump has been bellyaching about rates being too high here. Ulterior motives? Of course!

Markets supplied the day’s punchline. The yen weakened about 0.45% to 156.64 per dollar after the decision, while Japan’s benchmark 10-year government bond yield fell 4.9 basis points to 2.947%. That leaves the BOJ trying to thread an unusually small needle: Tame inflation without kneecapping growth, support a battered currency without overtightening, and navigate a government that has favored easier monetary policy and fiscal expansion.

Editor: Japan finally gets its highest interest rate since 1995, and the yen responds by getting cheaper. Central banking—the profession where even doing exactly what everyone expected can produce exactly what you didn’t want.

Source: CNBC

DHS Secretary Markwayne Mullin’s Capitol Hill ‘Crash Pad’ Raises Ethics Questions

Homeland Security Secretary Markwayne Mullin has reportedly shared a $1.8 million Capitol Hill townhouse for three years with Republican Rep. Jason Smith, chairman of the House Ways and Means Committee, according to the Daily Mail. Mullin owns the property, his representative describes him as Smith’s landlord, and Smith confirmed the living arrangement—but the report says neither side disclosed how much rent Smith pays and that there is no public documentation of a rent transaction.

Washington has produced plenty of strange bedfellows, but this one comes with a landlord, a cabinet secretary, and congressional oversight under the same roof.

Mullin, 49, is married with six children whose family home is in Oklahoma, while Smith, 46, is unmarried. Sources described their Washington home as a busy “crash pad,” with one telling the Daily Mail: “People are all always going in and out of that place, for work, for fun, it’s like a college dorm.” The paper reported seeing Mullin’s security detail at the property and four unidentified people in suits leaving the house.

The potentially consequential issue is financial rather than residential. House rules restrict members from accepting gifts above certain limits, and the Daily Mail raises the question of whether below-market rent could constitute a gift. The article does not establish that Smith receives discounted or free housing. It reports that Mullin Realty LLC lists residential real estate worth between $1 million and $5 million generating $50,000 to $100,000 in rental income, but says Smith’s public expense disclosures do not specifically identify rental payments to Mullin. The arrangement also has an institutional wrinkle: Smith chairs Ways and Means, which has jurisdiction touching portions of the department Mullin runs.

The two men have been close friends since serving together in the House, reportedly bonding over early-morning workouts, and Smith has publicly praised Mullin as a “man of God, a husband, and a father.”

Whether Smith pays ordinary market rent—and whether the arrangement creates any disclosure, gift, or conflict issue—is the part worth watching.

Editor: Washington roommates are nothing new. But when your roommate chairs a committee with oversight touching your federal department, “who Venmoed whom for rent?” becomes considerably more interesting than who forgot to buy toilet paper.

Source: Daily Mail

ICE Agent Christian Castro Faces Minnesota Charges After Months-Long Extradition Standoff

ICE officer Christian Castro made his first Minnesota state-court appearance Thursday on assault and false-reporting charges stemming from the January shooting of Venezuelan immigrant Julio Sosa-Celis. The 52-year-old officer arrived from Texas after a months-long dispute over extradition, was arrested Wednesday in Minneapolis, and was released on bail Thursday evening.

The case has gone from an immigration raid to a shooting, disputed officer accounts, dropped charges against the man who was shot, and an interstate legal brawl over who gets to put the federal agent on trial.

Minnesota authorities allege that on Jan. 14, Castro fired through the front door of a house Sosa-Celis had entered while fleeing, hitting him in the leg. Authorities say the bullet continued into the wall of a child’s bedroom. Federal prosecutors initially charged Sosa-Celis and another man with assault, but those charges were later dropped after the Justice Department acknowledged that officers involved in the incident—including Castro—had made untruthful statements about what happened.

Castro was arrested in Texas in May and spent roughly three months jailed there while Minnesota sought his extradition. Minnesota officials eventually sued Texas, alleging Gov. Greg Abbott’s failure to approve the extradition was unlawful, but a federal judge declined to intervene. Minnesota Attorney General Keith Ellison said Thursday that the lawsuit has now been dismissed. Castro’s lawyer said he had intended to surrender at his attorney’s Minneapolis office before state authorities arrested him. Hennepin County Attorney Mary Moriarty had a rather less accommodating interpretation: “You do not get to dictate how you are taken into custody.”

Castro also faces federal charges accusing him of lying to investigators about the shooting, although federal prosecutors did not charge him with a civil-rights offense over the shooting itself. His attorney Rolando Cantu said Castro intends to plead not guilty to both the federal and state charges, telling NPR, “We’re ready to fight this case in court.” Castro is expected in federal court Friday, with his next Minnesota state-court appearance scheduled for Nov. 3.

Editor: When the original charges against the guy who got shot disappear because investigators say officers weren’t truthful, and one of those officers winds up facing charges himself, the phrase “the story has changed” is doing some industrial-strength lifting.

Source: NPR

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Trump Administration Eyes 17,600 Acres of Public Land for Massive Data Center Buildout (Bailout?)

The Trump administration is considering at least 12 data centers and related infrastructure projects involving roughly 17,600 acres of federal public land across six Western states, according to public records reviewed by The Washington Sun. The proposals span Arizona, Idaho, Nevada, Oregon, Utah, and Wyoming, and several local officials told the publication they didn’t know some of the projects were even under consideration.

AI’s appetite for electricity, water, and land is getting so large that Uncle Sam may soon be one of its landlords.

The push isn’t accidental. President Trump signed an executive order in July 2025 directing federal agencies to accelerate permitting for major data-center infrastructure and make appropriate federal lands available for development. The proposals uncovered by The Sun range from full data centers to access roads, telecommunications lines, and water pipelines. Most remain in early stages, and the Bureau of Land Management says projects will undergo environmental review before approval.

The biggest proposal is hard to miss: Nuclear startup Valar Atomics is proposing a roughly 10,200-acre Utah project combining a data center with small nuclear reactors near Green River, plus another Utah development called the “Raceway Gigasite.” In Idaho, Rhea Data has proposed a 4-million-square-foot, multi-building data center across 3,226 acres of public land, complete with natural-gas generation and electrical infrastructure. Environmental groups are raising concerns about electricity rates, pollution, water consumption, and the precedent of putting industrial-scale computing facilities on federal land.

So far, BLM says it has approved a Townsite Data Center project on 88.5 acres of public land in Nevada, explicitly linking the approval to the administration’s effort to accelerate data-center permitting. The larger question is how much federal land ultimately gets transformed to feed America’s AI boom—and how much say nearby communities get before the servers arrive.

Editor: We spent years talking about “the cloud” as though AI lived somewhere between heaven and Wi-Fi. Turns out the cloud needs thousands of acres, power plants, pipelines, roads, and enough electricity to make your laptop charger feel personally inadequate.

Source: The Washington Sun

Gas Prices Are Surging—and Analysts Warn the Worst May Still Be Ahead

American drivers are facing another potentially steep jump in fuel prices as damage to Saudi Arabia’s critical East-West oil pipeline compounds disruptions from the U.S.-Iran war, according to The Washington Post. Regular gasoline averaged $4.44 a gallon nationally Thursday, while diesel hit $6.40, with several Midwestern states recording overnight gasoline increases above 20 cents.

The nastier number may be diesel: When trucking fuel hits record prices, the pain doesn’t stay at the gas station—it rides straight into the price of almost everything delivered by truck—which is nearly everything.

The immediate problem is Saudi Arabia’s 745-mile East-West pipeline, which has become a crucial alternative to shipping through the disrupted Strait of Hormuz. The Trump administration has suggested repairs could happen quickly, but outside analysts cited by the Post expect a substantially longer disruption.

Independent reporting underscores the uncertainty: Reuters reported Thursday that three pumping stations were damaged and several industry sources estimated full repairs could take five to six weeks, although partial operations might resume sooner.

The Midwest is getting an additional kick from an outage at ExxonMobil’s Joliet refinery near Chicago. According to the Post, regular gas jumped 25 cents in a day in Iowa, 23 cents in Wisconsin, and 22 cents in Michigan.

The broader global picture isn’t much prettier: Emergency reserves have been heavily drawn down, Chinese oil demand has rebounded, and traffic through Hormuz remains below prewar levels. There is some counterpressure, however—Saudi Arabia is rerouting crude through Oman, and oil prices eased Friday as fears of an immediate supply crunch moderated.

Washington is already looking for options, including discussion of restricting U.S. diesel exports, though economists cited by the Post warn that could fail to solve the underlying shortage and potentially make matters worse. For consumers, the bigger issue is how long the Middle East disruptions last and how quickly Saudi infrastructure returns to service.

Editor: Remember when $5 gas was the number everybody used to illustrate energy misery? We’re knocking on that door again, while diesel has already kicked it open, walked inside, and started rearranging the furniture.

Source: The Washington Post (no paywall)

CBP Officer Convicted of Sexually Assaulting and Robbing Women at Chicago-Area Hotels

A federal jury in Illinois found Customs and Border Protection officer Luis Uribe guilty Thursday on all charges stemming from attacks on four women in Chicago-area hotels in 2022, including 10 counts of deprivation of rights and one count of brandishing a firearm. Prosecutors said Uribe used his federal badge and CBP-issued gun to threaten and rob the women, sexually assaulting two, and attempting to sexually assault the other two.

This wasn’t merely criminal conduct, according to the verdict—it was a federal officer using the authority and weapons entrusted to him by the government against the very people that authority was supposed to protect.

Prosecutors said Uribe, who worked at O’Hare International Airport, entered the women’s hotel rooms on at least six occasions between February and October 2022 in Schaumburg and Naperville. All four women were of Chinese descent, and at least two said they were sex workers. Prosecutors said Uribe sometimes followed the women to their rooms or forced his way inside. In one incident, court records say, he threatened a woman with a knife and attempted to assault her before someone knocked on the door.

Uribe denied the allegations at trial. His lawyers acknowledged that he visited sex workers but argued that the encounters were consensual and that the women had falsely accused him after seeking his assistance with immigration matters. Uribe testified, “I never robbed anybody in my whole life.” The jury rejected that defense. Uribe, 45, is a former Marine who has worked for the federal government since 2009 and, according to the U.S. attorney’s office, remains employed by Customs and Border Protection. CBP said it takes misconduct allegations seriously and expects employees to meet “the highest standards of integrity, professionalism, and personal conduct.”

Uribe was indicted in December 2025 and has been detained since his arrest that month. His attorneys unsuccessfully sought to have the indictment dismissed before trial. He is scheduled for sentencing Jan. 21, 2027, and faces a mandatory minimum of seven years and a possible maximum sentence of life in prison.

Editor: A badge and a government-issued gun are supposed to come with more accountability, not provide accessories for the crime. A federal jury has now delivered its answer on which side of that line Uribe landed.

Source: The New York Times

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Congress Skips Town, the Oil Map Gets Complicated, and a Camera Company Gets Caught Fudging Its Résumé

Washington cleared out early this week, oil chokepoints multiplied instead of easing, and a surveillance company’s origin story quietly rewrote itself—so grab your coffee, because the news didn’t take the week off even if Congress did.

Johnson Sends House Home Early as Massie Unloads Over Hegseth, Epstein and Unfinished Business. House Speaker Mike Johnson sent lawmakers home early Wednesday to hit the campaign trail, defending the chamber’s record even as Republican Rep. Thomas Massie tore into the decision from the House floor, arguing Congress left the Iran war, Defense Secretary Pete Hegseth’s impeachment resolution, and the Epstein files fight all unresolved. Johnson insists lawmakers remain on 48-hour recall and points to hundreds of bills passed this session, while critics, including Democratic Leader Hakeem Jeffries, call the shortened calendar the mark of a “do-nothing” majority. Massie, on his way out after losing his primary, used the moment for a parting shot at leadership on his way out the door.

Source: Associated Press

China has privately urged Iran to use its influence over Yemen’s Houthis after Saudi Arabia appealed to Beijing for help, as the group’s advance around the Bab el-Mandeb Strait threatens shipping through another vital Middle East energy corridor. With traffic through the Strait of Hormuz already severely disrupted, trouble at Bab el-Mandeb could squeeze two major energy arteries simultaneously, and Beijing finds itself caught between its deep economic ties to Iran and its equally heavy dependence on Gulf oil and trade. China remains Iran’s largest trading partner and the top buyer of its oil, giving it real leverage, but analysts note that leverage cuts both ways since disrupting Hormuz would also hurt the power Tehran depends on. Whether Iran actually reins in the Houthis remains an open question, with Tehran instead tying regional stability to an end of the U.S.-Israeli war against Iran.

Source: Reuters

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Canadian Prime Minister Mark Carney welcomed a proposal for Canada to become the European Union’s first “associate member,” setting up a potentially historic transatlantic realignment as President Trump threatens additional tariffs if he views the arrangement as hostile to U.S. interests. European Commission President Ursula von der Leyen unveiled the unprecedented status Wednesday, outlining cooperation spanning defense, critical minerals, artificial intelligence, energy, and cybersecurity, while Carney framed the alliance as a way to make Canada and Europe less vulnerable to economic coercion, not a bloc built to confront Washington. Trump called the arrangement “laughable” and threatened trade sanctions against Europe in response. The two sides already share a substantial foundation through their CETA trade agreement, and both note the details of “associate member” status still need to be negotiated and approved.

Source: CNBC

Congress has approved the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, giving President Trump authority to impose tariffs of up to 100% on major purchasers of Russian energy while expanding sanctions on Moscow’s energy and defense sectors. The House passed the measure 262-159 Wednesday after the Senate cleared it 86-11 in August, sending it to Trump’s desk and putting China and India—Russia’s two biggest crude customers—squarely in the crosshairs, though the law gives Trump discretion over whether and how aggressively to actually use that power. India has already warned Washington about potential fallout for bilateral relations and energy markets, while China has voiced opposition to penalizing its trade with Moscow. Russia, for its part, says the sanctions, if signed, would make reaching a Ukraine peace settlement harder.

Source: Al Jazeera

Flock Safety once advertised its controversial license-plate cameras as “made in the USA” and later “designed & manufactured in the U.S.,” but current marketing materials no longer identify where the cameras are assembled, according to WIRED. Import records show Flock increasingly receiving cameras, radar systems, and other components from Primax Electronics, a Taiwan-headquartered manufacturer with facilities in China and Thailand, even as tens of thousands of Flock cameras continue tracking vehicles on American roads. The company’s manufacturing story has shifted considerably over the years, from early prototypes built with Android phone cameras bought on Alibaba, to in-house Atlanta assembly, to contract manufacturing that still relies heavily on Asian components. Flock says its products comply with National Defense Authorization Act requirements, but privacy advocates argue the deeper issue is supply-chain transparency, not just final assembly location.

Source: WIRED

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Rep. Gregory Meeks has refused to clear the Trump administration’s proposed $2.8 billion sale of 40,000 2,000-pound bombs to Israel, citing unresolved questions about compliance with U.S. law and protections for civilians. The ranking Democrat on the House Foreign Affairs Committee said the administration has not provided sufficient assurances that the weapons, which include MK-84 bombs, BLU-117s, and penetrator warheads, would be used lawfully in densely populated areas of Gaza or Lebanon. The move revives a long-running Washington debate over heavy bombs and civilian casualties that dates back to a Biden-era pause in 2024, later reversed by Trump shortly after taking office. For now, Meeks’ hold creates additional scrutiny rather than an outright cancellation, leaving the administration’s next move to determine whether the objection reshapes the sale or simply delays it.

Source: UPI

From an early congressional exit to a surveillance company’s murky supply chain, today’s stories share a common thread: transparency, or the lack of it, keeps shaping the biggest decisions in Washington and beyond.

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Johnson Sends House Home Early as Massie Unloads Over Hegseth, Epstein, and Unfinished Business

House Speaker Mike Johnson sent lawmakers home early Wednesday to campaign for the midterms, defending the House’s record even as Republican Rep. Thomas Massie blasted the decision and pointed to unfinished fights over the Iran war, Defense Secretary Pete Hegseth, and the Jeffrey Epstein investigation. Johnson says lawmakers will remain on 48-hour notice to return if necessary.

“We’re calling off Congress? And we’re in the majority?” Massie demanded from the House floor.

Massie used an hourlong floor speech to attack Johnson’s leadership and argue Congress should remain in Washington. Among the matters left without votes were Massie’s resolution seeking Hegseth’s impeachment over actions connected to the Iran war and his effort to force the release of additional Epstein-related files. “I’m trying to get justice for the Epstein survivors,” Massie said. “I’m trying to stop a war.” Johnson countered that “the House has done its job” and dismissed the Hegseth impeachment effort as “a stunt.”

Johnson points to hundreds of bills passed during the session and major legislation signed into law, while critics point to the chamber’s shortened calendar. AP reports that, by one tally, 28 House days were canceled this year while four were added—a net reduction of 24 scheduled days. Before leaving Wednesday, lawmakers also passed legislation including sanctions on Russia (see below). Johnson called this Congress one of the most productive in decades; Democratic Leader Hakeem Jeffries, by contrast, characterized the Republican majority as “do-nothing.” Jeffries should know… takes one to know one.

For Massie, who lost his Republican primary and is nearing the end of his House tenure, the confrontation became something of a final broadside against congressional leadership. He criticized U.S. involvement in Iran and Hegseth’s actions, while Johnson defended the secretary. “I’m not playing this game,” Massie said. “I am going to tell people what is going on up here.” The voters will get their turn soon enough; Congress, meanwhile, gets an early trip home.

Editor: Congress can argue over whether this session was historically productive or chronically abbreviated. The calendar, at least, is considerably less argumentative: Lawmakers are going home early.

Source: Associated Press

China Presses Iran to Rein In Houthis as Red Sea Oil Route Comes Under Threat

China has privately urged Iran to use its influence over Yemen’s Houthis after Saudi Arabia appealed to Beijing for help, as the group’s rapid advance around the Bab el-Mandeb Strait threatens shipping and another crucial Middle East energy route. The request puts Beijing in an awkward spot: Iran is a major strategic and economic partner, but China also depends heavily on Gulf oil and trade.

With traffic through the Strait of Hormuz already severely disrupted, trouble at Bab el-Mandeb could squeeze two of the Middle East’s most important energy arteries at the same time. Reuters reported that only three commercial vessels transited Hormuz Wednesday, compared with 12 the previous day and a recent 10-day average of about 17.

According to three Iranian sources cited by Reuters, Beijing wants Tehran to use its influence with the Houthis to prevent the conflict from spreading further across the Red Sea. China’s foreign ministry publicly called for dialogue and said it does not want regional tensions spilling further into Yemen and the Red Sea. The Iranian sources said Beijing did not threaten economic consequences if Tehran declined to act.

China has some serious leverage. It has been Iran’s largest trading partner for more than a decade and remains the principal buyer of Iranian oil; Chinese purchases accounted for more than 80% of Iran’s seaborne oil exports in 2025, according to Kpler data cited by Reuters. But Beijing also has enormous interests elsewhere in the Gulf. “Iran can disrupt Hormuz. But at some point that leverage begins hurting the very power Tehran increasingly depends on,” Middle East Institute analyst Alex Vatanka told Reuters.

Whether Iran actually leans on the Houthis remains unclear. Tehran reportedly responded that regional stability depends on ending the U.S.-Israeli war against Iran, while the Houthis’ territorial gains have strengthened their ability to threaten Red Sea shipping. China helped broker the 2023 restoration of diplomatic relations between Iran and Saudi Arabia; now Riyadh is effectively asking Beijing to demonstrate how much influence came with all that diplomacy.

Editor: China wanted cheap Iranian oil, booming Gulf trade, and the prestige of Middle East diplomacy. Now everybody would like Beijing to come downstairs and deal with the kids. This, by the way, is Saudi Arabia’s response to asking Trump for help and getting the cold shoulder. So now they’re becoming more aligned with China and less with the US. Guess what happens next?

Source: Reuters

Canada Eyes Historic EU Alliance as Trump Threatens Europe With Tariffs

Canadian Prime Minister Mark Carney welcomed the EU’s proposal for Canada to become its first “associate member,” setting up a potentially historic realignment of transatlantic relations as President Donald Trump threatens additional tariffs if he views the arrangement as hostile to U.S. interests. (He does. He’s already suggested it.) Carney told the European Parliament that Canada welcomes the EU’s ambition while emphasizing cooperation on trade, defense, technology, energy, and economic security.

Canada is effectively telling Washington that it intends to decide for itself whom it trades with and how closely—and Europe is holding the door open. Trump called the proposed arrangement “laughable” and threatened trade sanctions against Europe, while Carney argued that greater Canadian resilience would make the country a stronger partner for the United States.

European Commission President Ursula von der Leyen proposed the unprecedented “associate member” status Wednesday, saying she wants to elevate EU-Canada relations to “the highest level possible.” The details remain to be negotiated—the EU does not currently have a formal associate-membership category—but von der Leyen outlined cooperation spanning defense industries, critical minerals, artificial intelligence, energy, quantum computing, cybersecurity, and the Arctic. (Greenland…)

Carney made clear that Canada isn’t proposing some new superpower club designed to take on Washington. Instead, he described an alliance intended to make Canada and Europe less vulnerable to economic coercion and external pressure. “An alliance strong enough so that no one can dictate our choices,” Carney told European lawmakers. Any final agreement would still require negotiation and approval through the relevant Canadian and European processes.

The two sides already have a substantial foundation: Their CETA trade agreement has helped increase bilateral goods trade by 75% in less than a decade, according to von der Leyen. What’s being discussed now goes considerably further—toward what she calls an “Alliance for the Future.” The precise meaning of “associate member” remains to be written, but Canada and Europe have unmistakably started down the road.

Editor: Nothing says “Canada and Europe are free to make their own trade arrangements” quite like threatening them with tariffs for making their own trade arrangements.

Source: CNBC

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Congress Hands Trump Sweeping Russia Sanctions Power, Putting China and India in the Crosshairs

Congress has approved the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, giving President Donald Trump authority to impose tariffs of up to 100% on major purchasers of Russian energy while expanding sanctions targeting Moscow’s energy and defense sectors. The House passed the measure 262-159 Wednesday after the Senate approved it 86-11 in August, sending the legislation to Trump’s desk.

The potentially enormous consequence: China and India, Russia’s two biggest crude customers, could face steep U.S. tariffs—but the legislation gives Trump discretion over whether and how aggressively to use that power. That distinction matters: Passage of the bill does not automatically slap a 100% tariff on Indian or Chinese goods. This is yet again, Congress ceding even more power to the Executive branch.

Named for the late Sen. Lindsey Graham, the legislation targets Russia’s energy and defense industries, government officials, and the so-called “shadow fleet” of tankers used to circumvent sanctions. It also extends sanctions involving Iran. Supporters argue the measure gives Washington additional economic leverage against Moscow over its war in Ukraine; opponents raised concerns about granting the president broad tariff authority and the possibility of higher costs for American consumers.

India has already warned Washington about potential consequences. Its government said it has explained to U.S. officials the possible effects on bilateral relations and international energy markets and pledged to protect its energy and trade interests. China has likewise opposed efforts to penalize its trade with Russia. The timing makes the equation more complicated: Disruptions to Middle Eastern energy supplies have increased the importance of alternative crude sources for Asian importers.

The real question now moves from Capitol Hill to the White House. The legislation creates potentially powerful economic weapons, but their impact depends heavily on how Trump chooses to deploy them. Russia has already said the new sanctions, if signed, would complicate efforts to reach a settlement in Ukraine. In other words, Congress has loaded the tariff cannon; what happens next depends on whether—and where—the president fires it.

Editor: Nothing simplifies an already strained global oil market quite like adding the possibility of 100% tariffs on two of the planet’s largest energy buyers. Economists everywhere just reached for the extra-strength antacid.

Source: Al Jazeera

Flock Touted Its Surveillance Cameras as Made in America. Now It’s Not So Clear.

Flock Safety once advertised its controversial license-plate cameras as “made in the USA” and later “designed & manufactured in the U.S.,” but WIRED reports that current marketing materials no longer identify where the cameras are assembled. The change comes as Flock faces growing scrutiny over the nationwide network of cameras used by police and other agencies to track vehicles.

Tens of thousands of cameras are watching American roads, but WIRED couldn’t determine where Flock is currently putting them together. Import records reviewed by WIRED show Flock increasingly receiving commodity cameras, radar systems, and other components from Primax Electronics in Thailand. Primax is headquartered in Taiwan and operates manufacturing facilities in several countries, including China and Thailand. Flock told WIRED that all products it builds comply with National Defense Authorization Act requirements.

Flock’s manufacturing story has changed considerably. Early prototypes used cameras pulled from Android phones purchased through Alibaba, while later cameras were assembled by Flock employees in Atlanta. Marketing from 2019 called them “manufactured in the United States”; in 2020, Flock said “made in the USA”; and in 2021 it specified assembly by “Flock Safety in Atlanta, GA.” Final assembly later shifted to contract facilities operated by East West Manufacturing in North Carolina and Plexus in Wisconsin, according to a source cited by WIRED, while many components continued coming from Asia.

The supply-chain questions matter because Flock’s technology has already generated a fierce privacy debate. Police say automated license-plate readers can help deter and solve crimes, while critics point to documented cases involving improper tracking and data-sharing concerns.

Flock has been clearer about its new Alpha surveillance drone, announcing a Smyrna, Georgia, facility to assemble drones and solar panels. But for its signature license-plate cameras, WIRED found no current answer to the basic question of final assembly location. Wherever the cameras are screwed together, the larger issue increasingly confronting Flock is transparency—about its hardware, its supply chain, and the enormous surveillance network those little black boxes have become.

Editor: Orwell’s Big Brother is here.

Source: WIRED

Meeks Puts Hold on Trump’s $2.8 Billion Bomb Sale to Israel Over Civilian Concerns

Rep. Gregory Meeks has refused to clear the Trump administration’s proposed $2.8 billion sale of 40,000 2,000-pound bombs to Israel, citing unresolved questions about compliance with U.S. law and protections for civilians. Meeks, the ranking Democrat on the House Foreign Affairs Committee, announced the hold Wednesday.

The hold creates a congressional obstacle for one of the largest proposed U.S. transfers of heavy bombs to Israel in years, although reporting indicates the administration has options for proceeding despite Meeks’ objection. The proposed package would largely be financed through the U.S. Foreign Military Financing program, according to UPI.

Meeks said he remains committed to Israel’s security but has concerns about the proposed transfer.

His committee statement specifies concerns about potential use in densely populated areas of both Gaza and Lebanon.

The dispute revives a long-running debate in Washington over 2,000-pound bombs and civilian casualties. The Biden administration paused a shipment that included the weapons in May 2024 amid concerns about their potential use during Israeli operations in Rafah. Trump ordered the previously withheld bombs released shortly after returning to office in January 2025. The newly proposed package reportedly includes MK-84 bombs, BLU-117s, and penetrator warheads.

For now, Meeks’ action means the proposed transfer faces additional scrutiny rather than an outright cancellation. His stated position is that Israel has legitimate defense needs while Congress has a responsibility to examine whether U.S.-funded weapons will be used lawfully and with civilian safeguards. The administration’s next move will determine whether that congressional objection changes the sale or becomes another procedural hurdle on the way to completing it.

Editor: A $2.8 billion shipment of 40,000 massive bombs probably deserves at least a little more paperwork than “trust us.”

Source: UPI

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Rates, Rebellion, and a Renovation on Hold

Buckle up, because Washington and Wall Street are both having a week, and nobody involved seems particularly relaxed about it.

The Federal Reserve is widely expected to raise interest rates by a quarter-point Wednesday, taking its benchmark range to 3.75% to 4% in its first hike since July 2023, and Chairman Kevin Warsh is walking straight into it. President Trump has been publicly demanding the lowest rates in the world, but stubborn inflation and a bond market already charging nearly 5% on the 10-year Treasury are pulling policy the other way. Three Fed officials dissented in July favoring a hike, and economists now expect at least one more increase by March. The real story may be what Warsh says afterward: markets are desperate to know whether this is a one-off move or the start of a new tightening cycle, and Warsh’s skepticism of the Fed’s usual forward guidance makes his press conference must-watch television. Source: The New York Times

Republican Rep. Thomas Massie of Kentucky has introduced eight articles of impeachment against Defense Secretary Pete Hegseth, accusing him of waging unauthorized hostilities against Iran and committing other abuses of office. Massie’s central charge is that Hegseth kept U.S. forces engaged in Iran for more than 90 days without congressional authorization, a violation of the War Powers framework, and he has also accused Hegseth of retaliating against critics and misusing military power abroad. Notably, this is a Republican targeting a Republican administration, and it comes as Massie, who lost his primary earlier this year, heads for the exits. The House now has to formally dispose of his privileged resolution, putting members on record just weeks before the midterms. Source: NPR

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A federal judge has issued a preliminary injunction protecting David Streever after he received a government warning notice over a scathing email criticizing former acting ICE director Todd Lyons. Streever’s email called Lyons a “monstrous human being” and compared him to a Nazi; months later, Homeland Security Investigations officers tracked him down at home, at an airport, and at a hotel to deliver a notice warning he “may be in violation of federal law.” Judge Rudolph Contreras sided with Streever, ruling that the threat of investigation forced him to self-censor his political speech, and the government’s own filings never claimed the email amounted to a prosecutable threat. It’s a preliminary ruling, not a final verdict, but for now, angry criticism of a government official is still just angry criticism. Source: NPR

J.B. Hunt shares plunged more than 10% Wednesday after the trucking giant warned that third-quarter earnings will fall 5% to 10% from the second quarter. CFO Brad Delco pointed to roughly $25 million in new hiring-related costs, from recruiting to sign-on bonuses, plus at least a $10 million hit from wildly volatile diesel prices. Delco framed the pain as a timing issue tied to positioning the company for growth, and improving freight volumes could offset some of the damage. Still, after a run that had nearly doubled the stock over the past year, investors weren’t in a patient mood, and they took the elevator down instead of waiting for the freight volumes to arrive. Source: CNBC

European Commission President Ursula von der Leyen wants Canada to become the European Union’s first-ever “associate member,” a brand-new category of relationship that would deepen cooperation on defense, energy, technology, critical minerals, and economic security without making Canada a full EU member. Speaking to the European Parliament with Canadian Prime Minister Mark Carney in the room, von der Leyen called for urgently reimagining trans-Atlantic partnerships, and lawmakers responded with a standing ovation. The idea remains just that, an idea, since full details haven’t been negotiated and Canada has signaled it isn’t ready to accept all the obligations that typically come with EU market access. Still, the fact that Ottawa and Brussels are floating an entirely new kind of alliance says a lot about how both sides are hedging their bets right now. Source: The Wall Street Journal (no paywall)

The Kennedy Center’s board voted to immediately close its main building for a roughly two-year, $257 million renovation, just hours after a federal judge ruled again that Trump’s name cannot be placed on the national memorial without congressional approval. Officials cited real safety concerns, including a chunk of ceiling plaster that fell 60 feet into the Grand Foyer, but Trump has now said the renovation won’t move forward unless the naming fight ultimately breaks his way on appeal. Meanwhile, internal documents show the center is also fighting a serious financial squeeze, with ticket sales and fundraising down even as leadership insists Trump’s involvement could attract new donors. Between the safety issues, the litigation, and the money troubles, one of America’s most famous stages is now dark while its future gets argued out in court. Source: The Washington Post (no paywall)

From a Fed chair walking a monetary tightrope to a performing arts institution stuck in legal limbo, today’s Sixpack is proof that in 2026, nobody in Washington gets a quiet Wednesday.

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Fed Poised to Raise Interest Rates, Putting Warsh on a Collision Course With Trump

The Federal Reserve is widely expected to raise interest rates by a quarter-point Wednesday, taking its benchmark range to 3.75% to 4% and marking its first rate increase since July 2023. The move would come just two months before the midterm elections and despite President Donald Trump’s repeated calls for dramatically lower rates. Reuters reported Wednesday that markets broadly expect the hike as inflation remains above the Fed’s 2% target.

If Kevin Warsh wanted a quiet honeymoon as Fed chairman, monetary policy apparently had other plans.

Trump said days before the meeting that the United States “should be paying the lowest interest rate in the world,” continuing his public pressure on the central bank. But inflation and the bond market are pulling Warsh the other way. Three Fed officials dissented from July’s decision to hold rates steady, favoring a quarter-point increase instead, and recent inflation data has strengthened the case for tightening. Reuters’ latest polling found a majority of economists expecting Wednesday’s hike and at least one additional increase by the end of March.

The bigger story may be what Warsh says after the decision. Markets will be listening for clues about whether Wednesday represents a one-off move or the beginning of another tightening cycle. Warsh has been skeptical of the Fed’s traditional “dot plot” projections and reluctant to provide detailed forward guidance, making his 2:30 p.m. news conference particularly important. Meanwhile, long-term borrowing costs are already punishing: the Fed’s latest official data put the 10-year Treasury yield at 4.97% on Sept. 14.

That leaves the Fed in an awkward spot. Raising rates risks intensifying political friction with a White House demanding lower borrowing costs; failing to act could undermine the Fed’s inflation-fighting message and unsettle markets. Warsh’s task Wednesday isn’t merely deciding what to do with 25 basis points. It’s convincing investors that the Fed has a credible plan for what comes afterward—without promising something the economy forces it to abandon six weeks from now.

Editor: Trump wants the world’s lowest rates, inflation wants a fight, and the bond market is already charging nearly 5% for the privilege of lending Uncle Sam money. Somewhere in Washington, the aspirin futures are probably looking terrific.

Source: The New York Times

Republican Thomas Massie Moves to Impeach Pete Hegseth Over Iran War

Republican Rep. Thomas Massie of Kentucky has introduced eight articles of impeachment against Defense Secretary Pete Hegseth, accusing him of conducting unauthorized hostilities against Iran and committing other abuses of his office. Massie formally notified the House on Tuesday that he intended to offer the privileged resolution, setting up expedited consideration by the chamber.

One Republican is putting Trump’s defense secretary on the impeachment docket—and forcing Congress to deal with it before heading home.

Massie’s central allegation is that Hegseth violated congressional war powers by continuing U.S. hostilities against Iran without authorization.

Those are Massie’s allegations; Hegseth has not been removed or convicted of any offense, and the Pentagon has defended his leadership.

The resolution goes beyond Iran. Massie also accuses Hegseth of disregarding congressional war-powers directives, improperly using military power abroad, and retaliating against critics. The impeachment push comes near the end of Massie’s congressional career after he lost his Republican primary earlier this year. The House’s own floor record confirms that Massie gave formal notice shortly after noon Tuesday of his intention to introduce the privileged resolution.

The result is an unusually public confrontation between a Republican lawmaker and a Republican administration over presidential war powers. The House now has to dispose of Massie’s privileged resolution through its procedures, putting members on record over Hegseth and the conduct of the Iran conflict as Congress approaches the November midterms. Whatever happens to the impeachment effort, Massie has ensured that the constitutional argument over who gets to authorize an American war gets another turn on the House floor.

Editor: Massie may be on his way out of Congress, but he’s apparently declining the traditional farewell package of handshakes and commemorative plaques. Eight articles of impeachment makes for a considerably heavier parting gift.

Source: NPR

Judge Blocks DHS From Threatening ICE Critic Over Harsh Email

A federal judge has issued a preliminary injunction protecting David Streever from further federal action tied to a warning notice he received after sending a harsh email criticizing former acting ICE director Todd Lyons. The order prevents DHS and ICE from taking additional steps based on that notice, which warned Streever that he “may be in violation of federal law,” while his First Amendment lawsuit proceeds.

Calling a government official terrible things may make for lousy dinner conversation, but that doesn’t automatically make it a federal crime.

Streever’s email compared Lyons to a Nazi, called him a “monstrous human being” and said he would be tormented by his conscience. Months later, Homeland Security Investigations officers attempted to locate Streever at his home, an airport and a hotel before leaving the warning notice. Streever sued in July, arguing that the government’s response chilled constitutionally protected political speech. Judge Rudolph Contreras concluded that Streever had shown sufficient grounds for preliminary relief, writing that the threat of investigation or prosecution forced him “to self-censor under that threat.”

The government defended its investigation by pointing to increased threats against public officials and said the investigation had been closed before Streever filed his lawsuit. According to NPR, however, the government’s court filing did not contend that Streever’s email constituted a prosecutable violent threat. The injunction blocks officials from taking further action based on the warning notice or issuing substantially similar threats aimed at Streever’s protected expression while the case continues.

The ruling is preliminary rather than a final judgment on the lawsuit, but it gives Streever immediate protection while the underlying First Amendment claims are litigated.

Editor: The government can investigate actual threats against public officials. The constitutional problem comes when angry criticism gets treated like one without alleging that it actually crossed that line. That’s precisely the boundary this lawsuit is now asking the courts to police.

Source: NPR

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J.B. Hunt Stock Plunges as Trucking Giant Warns Earnings Will Drop Up to 10%

J.B. Hunt shares plunged more than 10% Wednesday after the trucking company warned that third-quarter earnings are expected to fall 5% to 10% from the second quarter. CFO Brad Delco said a combination of roughly $25 million in additional hiring-related expenses and at least a $10 million fuel-price headwind will weigh on results.

Apparently “preparing for growth” sounds considerably less exciting when it comes with $35 million-plus in new costs.

Delco said J.B. Hunt is spending more on recruiting, advertising, onboarding, training, and sign-on bonuses as it positions the company for increased business. “We kind of want to be transparent with investors and give an update that in light of these costs that are sort of hitting us, we are expecting our Q2 to Q3 earnings to actually drop 5% to 10%,” he told the Morgan Stanley Industrials conference.

Then there’s diesel. Delco described recent fuel-price movements as “some of the most radical and abnormal swings” the company has experienced, with record-high diesel prices creating at least a $10 million headwind. J.B. Hunt expects improving freight volumes to help offset some of those pressures, and Delco characterized much of the earnings squeeze as a timing problem rather than evidence that the company’s growth plans have gone sideways.

Investors weren’t inclined to wait around for the happier part of the story. The stock’s double-digit decline came after an extraordinary run, with J.B. Hunt shares having nearly doubled over the previous year. Delco says the company is still working to repair margins and has “a long way to go.” In trucking terms, then: The destination may be growth, but Wall Street just noticed how much fuel this trip is burning.

Editor: Nothing terrifies investors quite like a CFO saying the company is spending heavily today because tomorrow looks terrific. Wall Street generally prefers tomorrow’s terrific earnings delivered sometime around 9:30 this morning.

Source: CNBC

Canada Could Become the EU’s First ‘Associate Member’ as Trans-Atlantic Alliances Shift

European Commission President Ursula von der Leyen says she wants Canada to become the European Union’s first “associate member,” potentially creating an entirely new relationship between the 27-nation bloc and one of America’s closest neighbors. The proposal would deepen Canadian-European ties in defense, energy, technology, critical minerals and economic security without making Canada a full EU member.

Canada isn’t moving to Europe, but politically and economically, the Atlantic suddenly looks a lot narrower.

Von der Leyen made the proposal Wednesday during her annual address to the European Parliament, with Canadian Prime Minister Mark Carney in attendance. “We must urgently reimagine our partnerships. And build global coalitions for our resilience and democracies,” she said, adding that she wanted to open the door for Canada to become the EU’s first associate member. EU lawmakers responded with a standing ovation. The idea remains a proposal, and exactly what “associate membership” would entail has yet to be negotiated.

The possibilities are substantial: Integrating defense supply chains, expanding Canadian energy exports to Europe, cooperating on AI and digital rules, linking cloud and data infrastructure, and potentially creating new travel and work arrangements. Canada and the EU already have extensive ties, including their trade agreement and growing defense cooperation. Canada’s government said earlier this month that the two sides are working on economic security, defense-industrial cooperation, critical minerals, and a digital trade agreement.

There are major hurdles. Access to the EU single market normally comes with obligations involving EU rules, budget contributions and worker mobility, and Canadian officials have indicated they aren’t prepared to accept all of those conditions. Canada’s opposition Conservatives have also criticized the associate-membership concept over sovereignty and regulatory concerns. So nobody is sewing a maple leaf onto the EU flag just yet. But the proposal itself is significant: Canada and Europe are openly exploring a new institutional relationship as both seek to diversify their economic and security partnerships.

Editor: Canada becoming Europe’s first “associate member” sounds like somebody clicked “It’s complicated” on the geopolitical relationship status. The details aren’t written yet, but Ottawa and Brussels clearly think the old trans-Atlantic operating manual could use an update.

Source: The Wall Street Journal (free)

Kennedy Center Closes as Trump Ties $257 Million Renovation to Fight Over His Name

The Kennedy Center’s board voted Tuesday to immediately close its main building for a roughly two-year renovation, hours after a federal judge again ruled that President Donald Trump’s name cannot be placed on the national memorial without congressional approval. Trump subsequently said the renovation won’t begin while the ruling is on appeal and said it won’t proceed if the courts ultimately reject the naming plan.

The building is closed, the renovation is on hold, and the president’s name is still not going on the wall—Washington has discovered its own performance art.

The board cited safety concerns in ordering the immediate shutdown. Kennedy Center officials pointed to deteriorating structural components, water intrusion and a recent incident in which a section of ceiling plaster fell roughly 60 feet into the Grand Foyer without injuring anyone. Critics have disputed management’s characterization of the danger, while center officials say major construction cannot safely proceed with the building occupied. Programming is expected to continue at the Reach and other venues.

Then there’s the name. U.S. District Judge Christopher Cooper ruled that the board cannot install memorials honoring Trump at the Kennedy Center without Congress authorizing the change. “Simply put, Defendants cannot install memorials for President Trump or anyone or anything else at the Kennedy Center without Congress’s blessing,” Cooper wrote. Trump responded that if the appeals court rules against the center and the Supreme Court doesn’t reverse that decision, the renovation “will not take place.” Congress has already appropriated $257 million for the project.

Meanwhile, the Kennedy Center is dealing with a serious financial squeeze. Internal documents cited by The Washington Post said the institution could soon struggle to meet payroll and routine maintenance expenses, while ticket sales and fundraising have declined. Center leadership says Trump’s involvement can attract new donors; critics argue the upheaval surrounding his takeover and the naming dispute contributed to the losses. Those competing claims are now tangled together with the safety problems, renovation and litigation—leaving one of America’s best-known performing-arts institutions closed while its future gets argued over in court.

Editor: The Kennedy Center needs repairs, needs money, and needs a federal judge to explain who gets to put whose name on the building. The curtain is down, but the backstage drama appears fully funded.

Source: The Washington Post (free)

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