Friday, June 26, 2026

"After decades of warnings, new data suggest the Atlantic’s vital circulation may withstand climate warming better than feared"

And now for some good news. From the journal Science, June 11: 

Shifting currents 

Off the coast of the Canary Islands—In calm waters here off the northwestern coast of Africa, the crew of the RRS Discovery, a U.K. research ship, was scanning the horizon, waiting for a sentinel to return from the deep. An acoustic ping had triggered the release of a mooring holding 2 years of precious ocean measurements from its anchor 2000 meters below. More than 20 minutes had elapsed, and there was still no sign of the bright orange float that would lift the mooring to the surface. But Ben Moat, the cruise’s chief scientist and an oceanographer at the United Kingdom’s National Oceanography Centre (NOC), wasn’t worried. He had been here before.

On the bridge, Moat glanced at a black Casio watch attached to his clipboard: 22 minutes. There was more competition than usual to be the first to spot the float. Moat, the captain, and the third officer were joined by NOC’s CEO, as well as several members of a U.K. TV news crew. “Is it still off to port?” Moat asked, peering through binoculars for a mote of orange against a sea of azure.

The crowd on the bridge reflected the importance of the mooring, one of 10 in a vital climate observatory called the RAPID array. For more than 2 decades, RAPID’s instrument-packed moorings, spaced across the Atlantic Ocean at 26°N between the Bahamas and the Canary Islands, have monitored the changing strength of ocean currents called the Atlantic Meridional Overturning Circulation, or AMOC. The currents usher tropical waters and heat to the northeastern Atlantic, allowing cabbage palms to flourish in Ireland and keeping Norwegian ports ice-free in winter. As the waters move north, they cool and become saltier as sea ice forms and rejects brine. The resulting cold, salty water becomes dense enough to sink to the abyss, carrying heat and carbon dioxide down with it. The water returns south along the floor of the Atlantic, heading to the Southern Ocean and beyond.

Climate models have long warned that global warming could weaken “deep-water formation”—the density-driven sinking that is the engine of the AMOC. The logic is straightforward: As Greenland’s ice sheets melt and sea ice formation declines, North Atlantic waters will freshen. Combined with warmer sea temperatures, the freshening makes surface waters more buoyant. The AMOC was thought to have shut down abruptly during past climate warmings, and a handful of researchers now argue such a tipping point could occur this century. A sputtering AMOC could trigger a sharp cooldown in northwestern Europe, rising seas along the U.S. east coast, and shifts in tropical rainfall. “It is a risk that would really have severe impacts,” says Stefan Rahmstorf, a climate scientist at Potsdam University and a prominent voice warning of the threat.

Yet for all the alarming headlines, most climate researchers think the AMOC is more resilient than these worst case scenarios make it seem. Emerging evidence suggests the AMOC may not have actually collapsed in the warm climates following ice ages. More detailed climate models suggest it could weaken but not collapse in the current surge of warming. And studies of the AMOC’s present behavior do not yet show any clear signs of trouble. They’re also exposing new facets of the circulation that could buffer any eventual weakening.

“The paradigm has been, if we warm and freshen these areas, we’ll get less dense water and AMOC will slow down,” says Susan Lozier, an oceanographer at the Georgia Institute of Technology. “That paradigm isn’t holding up.”....

....MUCH MORE 

If interested see also:

October 2013 - A Table From The UN's IPCC AR5 Climate Change Report
Just some off the cuff factoids, we'll put it together into a coherent (I hope) investment framework between now and the big Paris meeting coming up in 2015.
If you are going to bet real money on this stuff, learn everything and trust no one....
April 2021 - "Rethinking Oceanic Overturning in the Nordic Seas"
The Arctic ocean is weird.
Because of the basin shape and the fact that, whereas in most of the rest of the oceans the temperature gradients, the thermoclines, play the biggest role in mixing/non-mixing of various waters, in the Arctic it's the halocline, the salinity gradient that you have to pay attention to.
And then there are the currents....
 
From the American Geophysical Union's EOS...
Your financial counsel should be able to immediately answer this query upon being awakened from the deepest delta-wave slumber at 3:30 in the AM. Try it tomorrow. Go to his/her/ze/zir's house and scream the question.

If he/she/ze/zir can't return the correct response the charlatan should be subjected to an unmerciful dressing-down. Or worse....

"Venezuela earthquakes latest: Death toll soars to 589 with over 50,000 missing and US military arrives for aid efforts"

From The Independent, June 26 15:34 BST:

At least 589 people have been confirmed dead in Venezuela after two devastating earthquakes struck overnight on Wednesday.

The US military arrived on Thursday to assist with coordinating aid efforts in the country, the military said.

US southern command said it was supporting relief operations on Friday, adding that the interim government of Venezuela had formally requested American support. The military is to provide specialised equipment and assist with search and rescue efforts. 

Acting president Delcy Rodriguez said on Friday that at least 2,980 people were injured in the double earthquake, while nearly 50,000 are missing....

....MUCH MORE 

"VW weighs up to 100,000 job cuts, four plant closures in biggest overhaul yet, sources say"

 This follows on March 12's Signposts: "Volkswagen slashes 50,000 jobs after profits collapse by nearly half".

From Reuters, June 26: 

  • Restructuring could be biggest in auto industry history
  • CEO Blume tried to enforce major cuts in 2024, but faced union resistance
  • Shutting Hanover, Zwickau, Emden and Audi's Neckarsulm could axe more than 45,000 jobs
  • Supervisory board members to discuss restructuring on July 9, sources say
  • VW's works council, IG Metall and Lower Saxony vow to resist cuts 
Volkswagen is considering shutting four German factories and ramping up job cuts to as many as 100,000, two people familiar with ‌the matter said on Friday, in what could be the biggest ever overhaul in the industry. 
Members of VW's supervisory board have been informed of the plans, which are due to be discussed at a July 9 meeting, the people said. 
The move comes as the carmaker faces mounting pressure from Chinese rivals, stiff tariffs on car imports into the United States, as well as dwindling demand in Europe, which the company has said makes its business model unsustainable.
Closing the plants at Hanover, Zwickau, Emden and Audi's ​Neckarsulm site would put more than 45,000 jobs at risk, according to the people. That would add to the 50,000 cuts that are currently planned. 
In absolute terms, laying off 100,000 people and ​axing four assembly plants would be the largest restructuring in automotive industry history.
It would be comparable to major shake-ups by GM leading up to and during its ⁠2009 bankruptcy and in the early 1990s when it cut as many as 74,000 jobs over four years and shut or idled 21 plants. 
Volkswagen CEO Oliver Blume presented the plans to senior executives earlier this week ​to rally support for deep cuts likely to face fierce resistance from unions and the state of Lower Saxony, the carmaker's second-largest shareholder.
The overhaul was first reported by Manager Magazin, which also said the world's ​No. 2 automaker would cut investment by about 15% to just over €130 billion ($148 billion) over the next five years. 
Blume and Chief Financial Officer Arno Antlitz aim to fundamentally restructure the 89-year-old company, including spinning off the core VW brand and parts operations into separate entities, the magazine added, citing sources.
Volkswagen shares were trading at 16-year lows on Friday, down 3.4% at 1335 GMT, suggesting investors were sceptical the plan would succeed. 
“The high costs are merely a symptom, not the cause. ​They do not address the root cause, which is weak sales," Ingo Speich of Volkswagen shareholder Deka told Reuters. 
"VW must bring attractive products to market that are in high demand; that would put an ​end to the debate over costs.”....
....MUCH MORE 

And on one of Doktor P's namesakes (the other, the Ferdinand, was a tank-destroyer, not nearly as well-engineered), March 10/11:

Porsche's €3.9bn writedown cuts automotive profit by 98% in EV retreat 

"China Gives Coal Room to Grow in New Five-Year Energy Plan"

It is quite possible that cheap electricity from coal-fired power plants will win the AI race for China. 

From Bloomberg, June 25/26:

China is leaving room for coal consumption to grow in coming years, as the stability of the world’s largest energy market continues to outweigh climate concerns.

“We will always prioritize energy security,” Wang Hongzhi, head of the National Energy Administration, said at a briefing on Friday to introduce the country’s new five-year plan for the sector, crediting the strategy for allowing China to successfully withstand the supply shock caused by the Iran War.

The new plan calls for strengthening coal’s role as backstop for the energy system. That includes enhancing coal resources in five existing production hubs, while allowing capacity to expand in central and eastern regions. Officials also gave a green light to further growth in the coal-to-chemicals industry.

Construction of new coal-fired power plants has boomed since a spate of electricity shortages in 2021 and 2022 as Beijing has touted the fuel’s role as a reliable back-up to intermittent renewables. China added 95 gigawatts of new thermal power capacity last year, the most since at least 2008, and requests for new permits in the first quarter of 2026 are ahead of last year’s record pace.

Read more: Chinese Firms Speed Up Plans to Build New Coal Power Plants: GEM

Meanwhile, the country’s coal-to-chemicals sector has grown rapidly in recent years, in part because the powerful mining lobby — heedful of the challenge from renewables in power generation — wanted to develop another source of demand for their product. Coal was given a further boost after the war in Iran pushed up prices of rival feedstocks such as naphtha and liquefied petroleum gas.

Softer Target

The new plan does put some limits on the expansion of fossil fuels, but experts view them as relatively weak, continuing a trend of China relying on clean energy to deliver bottom-up progress on emissions rather than enforcing tighter top-down controls.

The new road map reaffirmed the goal set in China’s overall five-year plan released in March, which called for coal consumption to reach a peak during the period. That’s a softer target than President Xi Jinping’s previous pledge to reduce coal use. The timeframe for completing the new dual carbon control system, which would include a cap on overall emissions, has also yet to be released.

While China’s direction of travel is toward lower emissions and eventual carbon neutrality, officials are signaling the journey will be slow and steady.

The goal of getting 50% of power from clean energy still allows fossil fuel generation to increase 10% over the period, according to the Center for Research on Energy and Clean Air. The new target on carbon intensity also leaves ample space for fossil fuels, which could be considered generous given that emissions from the power sector already fell last year....

....MUCH MORE 

Although China will tout the "50% from non-coal sources," they have been building coal-fired power plants and coal infrastructure faster than the rest of the world combined. Here is a September 21, 2025 post, reposted in full: 

"China Accelerates Coal Plant Commissioning To 9-Year High"

Following on September 17's "China’s Coal Power Can Win The AI Race".

From OilPrice, September 3:

Despite record solar and wind capacity additions and booming renewable energy output, China is not giving up on coal, on the contrary. 

During the first half of 2025, China commissioned as much as 21 gigawatts (GW) of coal power, the highest amount in the first half of the year since 2016, the Centre for Research on Energy and Clean Air (CREA) and Global Energy Monitor (GEM) said on Monday in their H1 2025 biannual review of China’s coal projects. 

Projections are that coal capacity commissioned for the full year would exceed 80 GW.  

Globally, China is the leader in renewable energy capacity installations, but it is also a leader in coal-fired power and continues to be the key driver of record-high global coal demand. 

In addition, China is looking to boost its domestic coal demand and prices this year. Coal prices in China have been depressed this year, weighing on the profits and profitability of the coal producers.

Despite previous signs of slowdown in coal power last year and a clean energy boom so far this year, coal power remains strong in China, with new and revived projects the highest in a decade, clean energy proponents CREA and GEM said in their half-year report. 

The surge in coal plant commissioning follows the jump in coal project permitting in 2022 and 2023, when China was permitting, on average, two new coal power plants every week. The years 2022 and 2023 saw more than 100 GW of coal power capacity approved in each of the two years.

“This trend will likely continue into 2026 and 2027, unless policy action is taken,” the report said. 

Just 25 GW of coal projects were permitted in China in the first half of 2025, but new and revived projects came to 75 GW, the highest in a decade, and construction starts and restarts reached 46 GW, which is equivalent to the entire coal power capacity of South Korea, CREA and GEM found....

....MORE 

August 2023 - "China Has Approved More Than 50 Gigawatts Of New Coal Power"

....Every year there's a new excuse.
As we said in June 2021's "Who Is Helping Finance China's Coal Infrastructure Build-Out?":

If you guessed HSBC you may already be a winner.
Or you may be a coal financier with knowledge of the business.
China has no intention of stopping their own coal development or that of their client states in Asia and Africa.* They make lovely, soothing speeches about climate and stuff and build $30 billion dedicated coal hauling railways....

When you see infrastructure like this being built you know the nice words from the Chinese are aimed at the stupid and credulous:

March 2021 -  China Does Not Plan To Stop Burning Coal 

Some more from the Covid-time:

"Report: China emissions exceed all developed nations combined" 

"China has ‘no other choice’ but to rely on coal power for now, official says"

China's Electricity Derived From Thermal (coal, oil, etc) Up 21.1% Q1 2021 vs. Q1 2020

One of our sources said the growth in thermal plant capacity* (not production) in 2020 was 38.4 gigawatts. This is the equivalent of adding a large (1,000 megawatt) coal plant every nine days. Every nine days.
Continuing that trend, coal plant capacity additions just in the first quarter of 2021 were 10,600 megawatts....

See also March 18's "China Energy Stats and Policy

"China's new coal power plant capacity in 2020 more than three times rest of world's"

"China generated 53% of the world’s total coal-fired power in 2020"

 Let's Get This Straight: China Has No Intention Of Giving Up Coal

Something we've been saying for so long I start to bore myself.

It's time to name (can't shame, they have no shame) the enablers of the massive long con China is running.

From the financiers backing Chinese coal to the lobbyists to the useful idiots to the UNocrats and the International Emissions Trading Association, to China's handmaidens in the American media, they are nothing but a bunch of liars and thieves enablers, apologists and grifters. Supergrifters. The time is long past when they deserve any attention at all and frankly, if I had my druthers, they would be dealt with the way the IRA dealt with Supergrasses. Not that we have any love for the IRA.

 China Does Not Plan To Stop Burning Coal

"Report: China emissions exceed all developed nations combined"

Follow-up: Just How Much Coal Fired Power Is China Currently Planning/Building?"

"China Raises Coal and Gas Output to Records After Prices Surge"
Have I mentioned that China has been lying about their climate goals and decarbonization efforts for 25 years?
*****
Uh huh. 

It wouldn't be worth commenting on except for the fact China burns quite a bit of coal.

....China is not just the largest burner of coal but it burns more coal than the rest of the world combined, and they have burned more coal than the rest of the world combined since at least 2014 and probably longer.....

And many, many more. Just call us your little ray of institutional memory sunshine on this stuff. 

https://climateerinvest.blogspot.com/search?q=china+coal&max-results=20&by-date=true

"Chinese firms brace for new EU rules as trade deficit tops $1bn a day"

Who will China sell to?

From Nikkei Asia, June 26:

Bloc leaders ready diversification tool but still split on how hard to push Beijing 

Chinese companies are bracing for tougher regulations in the European Union after leaders agreed on the need to address the bloc's trade deficit with China, which has ballooned to over 1 billion euros ($1.13 billion) a day.

The European Commission -- the EU's executive branch -- is preparing a diversification instrument that would require businesses to expand their supply chains so that they are not reliant on a single country, a decision made during a summit last week. The commission also is considering introducing sector-wide tariffs to avoid being overwhelmed by Chinese imports.

Chinese companies are urging EU leaders to be measured in their approach, saying their businesses are entrenched in the European ecosystem.

"The key concern is that future measures remain proportionate, evidence-based and genuinely country-agnostic, rather than creating de facto exclusions," said a Chinese clean technology manufacturer who requested anonymity.

The mood among Chinese businesses is "cautious and increasingly uncertain, though not alarmist," this person said, adding that they know they are headed for a more defensive EU policy.

The Chinese Chamber of Commerce to the EU (CCCEU) described the decision for a diversification instrument as "regrettable," arguing that rising imports from China reflected choices made by European business and consumers.

"The chamber believes that China-EU trade is driven by market demand and the complementary strengths of our economies," a CCCEU spokesperson told Nikkei Asia, highlighting the role that Chinese machinery and industrial components play in supporting European industry.

The EU recorded a goods trade deficit of 360 billion euros with China in 2025. In April, imports exceeded exports by 31.9 billion euros, according to Eurostat, equivalent to over 1 billion euros a day.

German Chancellor Friedrich Merz appears to be taking a harder line toward China, saying last week that Chinese subsidies and an undervalued currency placed European industry at a "massive competitive disadvantage."

Germany, the EU's largest exporter, has resisted tougher action in the past because of its extensive trade and investment ties with China. Not only is Berlin's flagship auto industry deeply intertwined with China's, its chemicals group BASF and pharmaceuticals major Bayer are among the companies that have huge operations there.

"There is a growing consensus that bolder action is needed," said Noah Barkin, a senior adviser at research and advisory firm Rhodium Group. "There is less of a consensus on what that action should look like."

Despite Merz's tough words, the German government remains divided, he said.

"Berlin does not want safeguards in the near term and is likely to take a dim view of any instrument which forces companies to restructure their supply chains," Barkin said.

A recent report by the German Economic Institute think tank estimated that 400,000 German jobs linked to exports to China may have disappeared since May 2021....

....MUCH MORE 

Who will buy? 

Capital Markets: "Oil Resumes Decline, Tech Shares Extend Slump, Greenback Trades Heavier"

From Marc Chandler at Bannockburn Global Forex:

There have been two key developments this week and they are both evident today. The first is the continued pullback in oil prices. August WTI is off almost 9% this week, after dropping as much last week and 5.25% the week before. It is near $69 compared with slightly below $66 before the war began. September Brent is off a little more than 9% this week after a 7% drop the previous week and 5.2% the week before that. It is slightly below $73 compared with a little more than $70 before the war. The second is the meltdown in technology shares. As one would expect, it is most evident in the large bourses in Asia and the Nasdaq in the US. 

The US dollar is mostly softer today, though the decline in oil prices has taken a toll on the Norwegian krone. It is off around 0.3% today and has been tagged for nearly 2% this week. The Dollar Index is off about 0.25% ahead of the North American session, and, if it is sustained, it would be the largest decline since early May....

....MUCH MORE  

Thursday, June 25, 2026

Korea's KOSPI Index Gets Slammed Again, Circuit Breaker Triggered

I'm getting triggered.

From Korea's Yonhap News Agency, June 26:

Bourse operator issues circuit breaker for KOSPI on sharp fall 

South Korea's bourse operator on Friday activated a circuit breaker for the benchmark Korea Composite Stock Price Index (KOSPI) as stocks crashed due to a slump in tech heavyweights.

Trading of KOSPI-listed shares was halted for 20 minutes....

....MORE

 As Grandmother used to say, "If it's not one tham ding it's another." 

And a bit east, the Tokyo Stock Exchange traders have returned from lunch and SoftBank is now down 13.84%. 

Earlier: SoftBank Stock Plunges On Possible OpenAI IPO Delay (9984:Tokyo)

SoftBank Stock Plunges On Possible OpenAI IPO Delay (9984:Tokyo)

Last I saw the stock was down 12.25% (-872.00 yen) 

From CNBC, June 25:

SoftBank sinks 12% as Asia tech rout tracks declines in the U.S. 

  • SoftBank Group plunged 12%, leading a broad selloff in Asian technology stocks.
  • The weakness also spilled into Asia’s semiconductor sector.
  • Apple and Microsoft price hikes added to pressure on global technology shares. 

SoftBank Group plunged more than 12% on Friday, leading a broad selloff in Asian technology stocks, amid mounting concerns over the rising cost of artificial intelligence infrastructure. 

The Japanese conglomerate led losses across the region after the Nasdaq Composite fell for a fourth straight session overnight. The tech-heavy index dropped 0.46% as a 6% plunge in Apple overshadowed Micron’s stronger-than-expected earnings. 

SoftBank Group could remain under pressure after its chip designer Arm Holdings fell 3.2% overnight, underperforming the broader semiconductor sector even as AI-related stocks rebounded sharply.

Andrew Jackson, an equity strategist at Ortus Advisors, said investor enthusiasm for SoftBank may also be capped by reports that OpenAI could delay its initial public offering until next year as it struggles to secure demand at a $1 trillion valuation.

Qualcomm’s new AI data center chip deal with Meta is ultimately positive for Arm through royalty payments, Jackson added. However, Arm also faces growing competition as Qualcomm expands more aggressively into the central processing unit market....

....MUCH MORE 

A couple days ago we saw at Reuters:

Talk of a bubble is 'blasphemy against AI' says SoftBank's Son 

Recently:

June 15 - Reminder: "Big Tech profits are being inflated by stakes in private startups"

We saw this most egregiously with SoftBank.*

June 9 - "SoftBank’s Attempt to Get $6 Billion OpenAI Margin Loan Stalls"

Good. I'm not kidding when I say Mr. Son's penchant for leveraged beta could be a threat not just to the AI players but to the world economy. If the largest domino starts dropping it's hard to see it stopping short of a coordinated international bailout.

Keep an eye on 9984 - Tokyo Stock Exchange...

"Bayer Surges After Winning Its Supreme Court Roundup Challenge"

From Investor's Business Daily, June 25:

Bayer (BAYRY) stock rocketed to a four-month high Thursday after the U.S. Supreme Court, in a 7-2 decision, blocked thousands of lawsuits alleging its Roundup herbicide caused cancer.

The justices ruled that Bayer couldn't be sued for failing to warn that Roundup, which it acquired when it bought Monsanto in 2018, may cause cancer. The court argued the Environmental Protection Agency didn't require a cancer-warning label, preempting state law claims, according to USA Today....

....MORE 

Previously on this case:

December 2025 - "Bayer stock has its best day in 17 years after support from Trump’s solicitor general" (BAYN) 

April 28 - German Chemical Colossus Bayer Gets Mixed Reception At Supreme Court On Roundup Suits

It was even more of a colossus when it was part of IG Farben before Farben was (rightfully) dismembered.
(and before the Monsanto acquisition) 

And on the other big Roundup case, May 7 - And In The OTHER Bayer Case: "US judge calls proposed Bayer Roundup settlement a 'filthy' deal"

"Tinker Saylor Soldier Spy" (MSTR; BTC)

From Puck, June 24:

Bitcoin has now fallen by more than 50 percent from its all-time high. Does the cryptocurrency’s number one evangelist have an escape hatch? 

For reasons that don’t make a lot of historical—or logical—sense, the U.S. stock markets are either at or near their record heights. The Dow Jones Industrial Average remains within a few ticks of 52,000, around its all-time high, reached a week ago. The Nasdaq reached its climax of a little more than 22,000 on June 17—a day after the DJIA’s record, though the tech-heavy exchange had a rough outing on Tuesday. The S&P 500 peaked at 6,144 on June 18. So, you know, it’s basically been risk-off euphoria in the stock market for months now.
In an environment where stock indices seem to know no bounds, you might think that Bitcoin—the ultimate speculative asset—would be ascending too. It has no business plan, no income statement or balance sheet, no future cashflows to discount back to a present value. Bitcoin is only worth what a buyer will pay for it. And at the moment, that’s about $60,000 per token, or about half of its all-time high of around $126,000, reached on October 6. It’s down 30 percent so far this year, while the Dow has risen 6.5 percent. Bitcoin has always been a volatile asset, but it still has to sting if you were among the crowd that bought BTC late last year.
One person who has been buying all along, at whatever price, has been Michael Saylor, one of my favorite protagonists of this strange era of finance. Saylor is the billionaire former C.E.O. and current executive chairman of Strategy, or what used to be called MicroStrategy, the publicly traded enterprise-software maker that has gone all in on not only buying Bitcoin but also holding it as a terminal asset, sort of the way Peter Thiel is holding on to his end-of-world New Zealand retreat.
As faithful Dry Powder readers know, Saylor is one of the world’s leading Bitcoin proselytizers. He is an absolutely mesmerizing advocate for the digital currency and has bet his entire company on the notion that BTC, of which there are only 21 million units, will continue to go “to the moon,” as the kids say. At a Bitcoin conference in Nashville two years ago, Saylor predicted Bitcoin would hit $13 million per coin by 2045, and that this was his base case. In that scenario, Bitcoin’s total value would be $280 trillion “and account for 7 percent of global wealth,” he said. (In his bull case, he said Bitcoin could reach $49 million per coin.)
Strategy, the largest corporate holder of BTC, now owns 847,363 Bitcoins, worth roughly $51.5 billion. Unfortunately, Saylor paid an average price of around $75,600 per, meaning that at current prices his stash is about 17 percent underwater. His last big purchase came on May 18, when he bought just under 25,000 Bitcoins for an aggregate purchase price of a little more than $2 billion, or about $81,000 per. Then, on June 1, Saylor did something once unfathomable: He sold 32 Bitcoins at an average sale price of $77,135, generating minuscule proceeds of around $2.5 million.
For the ultimate Bitcoin holder, this was quite the shock. On an earnings call, Saylor said that he sold the handful of tokens as a cash-management exercise to pay the dividends on an issue of preferred stock and to “inoculate the market and send the message that we did it.” Whatever the reason, the Strategy stock is down some 40 percent since right before Saylor announced the sale.
Not that long ago, I wrote about how Jim Chanos, the famous short seller, had started betting against Strategy. Using a metric that Saylor refers to as mNAV, or enterprise value divided by his Bitcoin holdings, Chanos pounced when Strategy’s mNAV hit a whopping 2.3x. Needless to say, Chanos was spectacularly correct about Saylor’s Bitcoin bet being wildly overvalued, and he made plenty of money on that short bet. Meanwhile, on Monday, Saylor bought another 520 Bitcoins, for $35 million, or $67,000 per BTC.

A Second Crypto Winter...

....MUCH MORE 

Possibly related:

June 2021 - MicroStrategy, Bitcoin and Beavers  

May 2022 - "Microstrategy chief: 'Bitcoin is going to go into the millions'" (MSTR)

Sadly, there are no pure-play psychiatric hospital stocks left on the market. They've been absorbed into larger organizations. On the other hand, as grandiosity and risk taking are symptoms of the manic phase of bi-polar disorders we may just be in luck with lithium producers SQM and Albemarle.

October 2024 - With The Booming Economy Shortages Are Beginning To Pop Up: "America Risks Running Out of Tickers for Single-Stock ETFs"

November 2025 - "Crypto treasury companies pivot to fringe tokens, stoking volatility fears"

Oh hell no.

Shut 'em all down. They should all be classified as advertent inadvertent investment companies in violation of the '40 Act. (which would have to be preceded by crypto being considered a security, but still)...

November 2025 -  "Chanos declares victory in his bet vs. Strategy’s Saylor"

The bet was smart, the timing was fortunate. Ask any number of investors who have bet on the price of closed end funds versus the NAV of the underlying portfolio.

Sometimes the prices converge, sometimes they don't and sometimes they do but it takes so long that you are in a rocking chair at the Old Traders Home before it happens....

Meanwhile, In Canada: "Report: Female cop shoots rabbi outside Pornhub office in Canada while hiding from Marxist gunman who killed immigrant officer named Mohamed "

Quite a bit going on in that headline.

From the Babylon Bee's sister site (for those times when parody fails) Not The Bee, June 23:

This reads like the darkest of satire:

As we reported yesterday, a female officer appears to have shot a civilian who spooked her while she was taking cover during an active shooting.

That man has been named as a Jewish rabbi named Michael Moshe Mizrahi, part of the Chabad movement. Canadian outlet La Presse reports that the female cop did indeed shoot him:

Michael Mizrahi, a 68-year-old trader, finds himself in the line of fire as he goes to buy a drink near his clothing store on Devonshire Road. In the same video, we see the man appear behind the policewoman, arriving from the side from which the suspect is shooting. In the chaos, the agent shoots the sixty-year-old dead ... Sources close to the investigation confirmed to us that it was indeed the patrolwoman who fired.

What we didn't know at the time is that the shooting took place outside the corporate offices of Pornhub's parent company, Aylo (formerly MindGeek), which owns the largest porn sites on the internet....

....MUCH MORE 

Not The Bee stresses "Noticing the multiple levels of irony here does not downplay the tragedy." Emphasis in original along with:

....The 34-year-old had been with the force since 2021 and was originally from Algeria, according to Canadian outlet TVA Nouvelles and a website for the Algerian diaspora.

Pelosi Group Reveals Latest Option Plays On...

The former Speaker of the House is hands down one of the premier traders of our time.

From Benzinga, June 24: 

Benzinga’s Government Trades page tracks Pelosi’s newly disclosed stock transactions — her first trades in five months.

Purchases include:

  • May 29, 2026: 200 call options with a strike price of $50 and expiration date of March 19, 2027 in Intel Corp INTC
  • May 29, 2026: 200 call options with a strike price of $50 and expiration date of March 19, 2027, in Uber Technologies UBER

The Intel trade is listed with a dollar value between $1 million and $5 million. The Uber trade has a dollar value of $500,000 to $1 million.

These mark the first trades disclosed by Pelosi since January 2026.

The option purchases follow a trading strategy often used by Mr. Pelosi that involves buying options dated months into the future and at a strike price already in the money, or below where shares are currently trading.

Intel stock is one of the top gainers in 2026 among large-cap stocks. Its shares are up 237.9% year-to-date as of this writing....

....MUCH MORE 

When the she-wolf of Wall Street awakens after a five-month slumber it is worth remarking upon. 

At MoneyWise, November 9, 2025:

Nancy Pelosi posted up a staggering 16,930% return on her investments, beat the market by 581%: Here are her 5 biggest wins and what you can learn

Conservative commentator Scott Jennings recently joked on X that “President Trump should hire Nancy Pelosi in retirement to manage Americans' stock market portfolios. She beat the S&P 500 by 559%. We could all be retired in 6 months!” (1) The sarcasm aside, Jennings had no idea that the numbers Pelosi leaves behind heading into retirement tell a startling truth.

A New York Post analysis revealed that before first taking office in 1987, Pelosi and her husband reported between $610,000 and $785,000 in stocks in their portfolio — worth $133.7 million today, according to the latest estimates from Quiver Quantitative (2).

That means that Nancy Pelosi made a 16,930% return, blasting past 2,300% for the Dow Jones over the same period of 37 years.

The New York Post reported that they netted a 14.5% average annual return, crushing the S&P 500, NASDAQ and Dow Jones performances over those years, around 7% to 9%.

Over the past decade alone, Pelosi's portfolio has generated an estimated 838% cumulative return, beating the S&P 500's 256% return by 581% at time of writing. In 2024, her portfolio jumped 70.9% compared to the S&P 500's 24.9% gain. Pelosi's personal net worth has skyrocketed to over $278 million according to Quiver Quant data (3).

These aren't actually Nancy Pelosi's trades directly — her husband Paul Pelosi, a venture capitalist, handles investments for the Pelosi family....

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"Google's Dual Nuclear Tech Strategy Takes Shape With Kairos & GE Vernova" (GEV; GOOG)

Zerohedge gets on board the GEV love train, June 24: 

Google is placing its nuclear bets through more than one channel. Elementl Power, the independent developer that received early-stage capital from Google in 2025 to prepare three US sites, has now made its first clear technology choice on at least one of them.

Elementl signed an Early Works Agreement with GE Vernova Hitachi Nuclear Energy (GVH) to deploy BWRX-300 SMRs at a nearly 700-acre site in Meigs County, Ohio. 

The project targets up to 1.5 GW of power production. Elementl has already filed a PJM interconnection request for the initial 600 MW. Construction remains targeted for 2030 with commercial operation eyed around 2034.

Elementl positions itself as technology agnostic. Its selection of the BWRX-300 therefore stands out, as the design draws on decades of GE boiling water reactor experience rather than the novel fluoride salt-cooled, TRISO-fueled path Kairos Power is advancing. 

Google already holds a separate multi-plant agreement with Kairos targeting up to 500 MW of advanced reactor capacity by 2035, as we reported when that deal was first announced in October 2024.

Google now effectively supports two distinct reactor approaches through its capital and offtake commitments. One pushes the technological frontier with higher temperatures and new fuel forms via Kairos. The other, advanced through Elementl's new Ohio project, favors a more conventional SMR that could encounter fewer first-of-a-kind regulatory and construction risks....

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"Thousands [tens of thousands] feared dead after double earthquake in Venezuela"

From The Telegraph, June 25:

State of emergency declared after 7.2 and 7.5-magnitude quakes  

Two of the strongest earthquakes in Venezuela’s history rocked the country on Wednesday evening, trapping and killing residents as buildings collapsed.

A 7.2-magnitude quake struck near San Felipe city, west of the capital Caracas, followed less than a minute later by a more powerful 7.5-magnitude tremor, in a seismic event known as a “doublet earthquake”. Caracas was rattled by dozens of aftershocks on Wednesday night.

Some 32 people had been confirmed dead and 700 injured by the early hours of Thursday. Experts warned that the quakes, and ongoing aftershocks and landslides, could cause more than 1,000 deaths, “to potentially tens of thousands”.

In a late-night televised address to the nation, Delcy Rodríguez, Venezuela’s interim president, declared a state of emergency and ordered all doctors and nurses to report for duty.

“We extend our condolences to those who have unfortunately suffered the loss of a family member,” she said.

Authorities had yet to count the number of people killed or injured in the state of La Guaira, which was the worst-affected region, Ms Rodríguez added.

The disaster represents an early test for Ms Rodríguez, who has been running the impoverished country since the US’s capture of Nicolás Maduro in a violent ‌raid in January.

Donald Trump, the US president, said the quakes had “left a devastating number of deaths” as he promised his country “stands ready, willing, and able to help”.

“I have instructed all agencies of our government to get ready to move quickly. We will be there for our new and great friends. Early reports are not good.”

Venezuelans rushed from buildings when the tremors began shortly after 6pm local time (11pm UK time). People in Caracas were seen running through the streets as cracks appeared in the walls of homes and offices. Concrete and glass scattered across the road as they evacuated.

Shocked residents shared video of paramedics attending to the injured, while rescue workers searched through dust and debris for more survivors.

People screamed for their loved ones outside destroyed homes and hotels, while others ran through the streets clutching their children as they searched for family members. It was not immediately clear how many people were trapped in damaged buildings.

Passengers inside Simón Bolívar International Airport in Maiquetía filmed their frantic efforts to find safety when debris fell from the ceiling of the terminal. The airport remained closed after suffering extensive damage, Ms Rodríguez confirmed during her national address.

The disaster echoed the region’s most devastating modern earthquake – the 1967 6.6-magnitude Caracas quake, which killed at least 240 people. It was the most powerful seismic event to be recorded in the region since the year 1900, according to United States Geological Survey (USGS) data.

The USGS said the 7.5-magnitude earthquake occurred 39 seconds after the first, describing it as the “main shock in a double event”.

“The USGS assesses that high casualties and damage are probable, and that the disaster is likely widespread,” its preliminary advice said.

Jeremy Lewin, the US acting under secretary for foreign assistance, said Washington had “already mobilised a disaster assistance team”.

Nayib Bukele, El Salvador’s president, said his government had readied 300 rescuers and paramedics, along with medical equipment and essential supplies.

Luis Abinader, the president of the Dominican Republic, said his government would send military teams specialised in search and rescue to Venezuela early on Thursday....

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Korea's Chosun Daily is reporting:
Venezuela Hit by 7.2, 7.5 Earthquakes Amid 100,000 Death Warning
USGS warns 44% chance of over 10,000 deaths as Venezuela's infrastructure faces collapse risks

Wednesday, June 24, 2026

"U.S. Bets Billions of Dollars in Low-Cost Loans Can Revive Nuclear Power" (BEP; CCJ)

Brookfield (51%) and Cameco (49%) are the co-owners of Westinghouse, the maker of the reactors.

From the Wall Street Journal, June 23: 

Energy Department will let utilities tap government funds to kick-start reactor orders 

The Trump administration is so eager to see a nuclear power renaissance that it is starting to fund billions of dollars for reactor orders.

In a new deal expected to be announced Tuesday, low-interest loans amounting to $17.5 billion from the Energy Department will be available for utilities to finance equipment orders for the Westinghouse AP1000, the company’s flagship nuclear reactor, a version of which China is building at industrial scale.
 
The loans are intended to speed up construction of 10 reactors in the U.S. Five loans will be available for projects with two reactors each, the Energy Department said. 
 
U.S. Energy Secretary Chris Wright said the conditional loans were part of a broader Trump administration mission to “unleash the next American nuclear renaissance.”
 
They “will also help accelerate the timeline of building those large-scale reactors by up to three years, lowering construction costs and ensuring the United States is able to deliver on President Trump’s bold and ambitious energy addition agenda,” Wright said.
 
The hope is that new AP1000s could come online starting in 2035, said Dan Sumner, chief executive of Westinghouse Electric.
 
“It really kick-starts fleet-scale nuclear development in the United States,” Sumner said.
 
Seven utilities have already signed formal letters of intent for the five available project loans, according to the Energy Department, which didn’t name the utilities. 
 
The companies would form partnerships with Westinghouse and each have at least one potential site for a reactor, primarily locations with an existing reactor or large power plant, or sites that have done previous licensing work with the Nuclear Regulatory Commission, the Energy Department said.
 
Several large power players have told regulators and investors that they aim to bring new large or small nuclear projects online sometime in the coming decades, including Duke Energy DUK , Dominion Energy D and PacifiCorp. States including New York and Illinois are also interested in expanding their nuclear generation. 
 
Government financing could boost a big technology that has struggled to move beyond its troubled first projects in the U.S. The only AP1000s finished domestically—two units at Georgia’s Vogtle nuclear-power plant—were originally expected to cost $14 billion, but ultimately exceeded $30 billion. They were meant to be completed in 2016 and 2017, but didn’t come online until 2023 and 2024.
 
A similar reactor project in South Carolina was abandoned in 2017 after costs spiraled past $9 billion.
 
After that, no U.S. utilities were eager to join the queue for the Westinghouse reactors. Investors and regulators, too, have been wary of cost and protracted timeline risks. 
 
The Energy Department said that by using low-cost government loans to make a steady series of bulk equipment purchases, the nuclear-power supply chain could be supercharged, effectively getting equipment ordered and manufacturing under way while the projects make their way through permitting, regulatory hurdles and final investment decisions.
 
Something like a 20-year power-purchase agreement with large tech companies also would likely be needed to move projects into construction and lower cost risks for utilities. Tech giants have been backing everything from small modular nuclear reactors to rebooting shutdown reactors. The Energy Department said it also has been coordinating with tech companies, engineering firms, utilities and others to figure out risk sharing....
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Here's Cameco's press release via BusinessWire, June 23:
And a few CCJ posts from 2026 (they go back years):
 
 
 
 
 
June 23 - Nuclear: Canada Will Be Pitching It's Homegrown Candu Reactor (but also leaving open the choice of A Westinghouse Or A GEV/Hitachi) CCJ

Westinghouse is 49% - owned by one of the component companies of our hyperconcentrated electrical mini-portfolio, the world's #2 uranium miner, Cameco.

Electricity: "Walmart’s First Nuclear Deal Shows Demand Beyond AI Data Centers" (WMT; CEG)

From Barron's, June 23:

Walmart is signing a long-term contract to buy nuclear power for the first time ever, a promising sign that the industry’s future is supported by more than just the AI data center boom.

The retail giant agreed on Tuesday to buy power from a nuclear plant in Illinois owned by Constellation Energy for its operations in the area, including its stores and a high-tech warehouse in Illinois that stores and sorts perishable food.

Walmart will buy 176 megawatts of power from the plant over a 15-year period, or enough power to serve around 150,000 homes.

The Walmart deal will allow Constellation to expand the capacity of the Illinois plant by 30 megawatts, a process known as an uprate, which can involve replacing older equipment and improving efficiency.

The financial terms were not disclosed, but these types of deals tend to go for premium prices because they allow the buyer to lock in their costs over a long period.

Walmart, which has pledged to eliminate net carbon emissions from its U.S. operations by 2040, will also receive the environmental attributes associated with the nuclear energy, which generates electricity without carbon emissions....

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Capital Markets: "Dollar Extends Gains Without Support of Higher Rates"

From Marc Chandler at Bannockburn Global Forex:

The US dollar’s rally is extending today, but the market remains cautious about intervention by Japanese officials. The Dollar Index has not fallen since last Tuesday. It has risen by a little more than 2% since the Fed delivered its hawkish hold last week. Yet, for the second consecutive session, the dollar is rising without it being backed by higher two-year rates. The greenback is at new highs for the year against many G10 currencies today, including the euro, sterling, Swedish krona, and the New Zealand and Canadian dollars.

More ships are transiting the Strait of Hormuz and reports indicate ships are keeping their satellite signals switched on, reflecting growing confidence by ship owners. August WTI fell to about $71.55 today, its lowest level since March 10. Equities have mostly stabilized after yesterday’s tech-led decline. The focus shifts to Micron Technology earnings later today....

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MU reports after the bell. After getting slammed on June 23, down $159.61 (-13.18%) to close at $1,051.77 following Korea's "Black Tuesday," the stock is up a bit, +$31.01 (+2.95%) in pre-market trade.

As Investor's Business Daily reported, expectations are high:

Memory: "Micron Earnings Seen Rising 987% Amid AI Megatrend" (MU)

"Yann LeCun xAI Failure Warning 2026: Complete Guide to the AI Bubble Debate and Industry Valuations"

From Machine Brief, June 18:

Turing Award winner Yann LeCun labelled Elon Musk's xAI a 'failure' and warned AI labs risk a 'big bubble explosion' if costs aren't controlled. This guide covers xAI's $6.4 billion losses, whether an AI bubble exists, and what rational valuations look like in a post-Fable 5 market. 

Introduction

Yann LeCun — one of the "Godfathers of AI," recipient of the 2018 Turing Award with Yoshua Bengio and Geoffrey Hinton, and founder of AMI Labs after leaving his role as Meta's chief AI scientist — does not hold back. On June 18, 2026, he labelled Elon Musk's xAI a "failure," said he expects it won't be able to compete with OpenAI and Anthropic, and warned that AI labs are risking a "big bubble explosion" if they don't cut costs and raise prices.

This is not a new spat. LeCun and Musk have been trading public criticism since at least 2024, when LeCun openly questioned Musk's claims about xAI's technical progress and Musk responded by calling LeCun "out of touch." But the June 2026 comments are different. They come as xAI reportedly lost $6.4 billion in 2025 according to SpaceX's IPO filing — the first public look at Musk's AI financials. They come as AI company valuations have reached levels that make even true believers uncomfortable. And they come from someone whose technical credibility in AI is essentially unassailable.

This guide covers what LeCun said, why he said it, the xAI financial picture, whether there's actually an AI bubble, and what rational valuation looks like for AI companies in 2026.

What LeCun Actually Said

LeCun's comments warrant direct quotation because the force of his language matters:

On xAI specifically: he called it a "failure" and said it "won't be able to compete" with OpenAI and Anthropic. The assertion is specific: xAI's model performance hasn't matched the frontier, and LeCun doesn't see a path to closing the gap.

On the broader AI industry: he warned that labs are risking a "big bubble explosion" — his words — unless they cut costs and raise prices. The implication: AI companies are burning cash on compute at rates that cannot be sustained by current revenue, and when the capital markets re-price the risk, the correction will be severe.

This is not a random critic. LeCun's contributions to AI — convolutional neural networks, backpropagation applications, self-supervised learning, the energy-based model framework — are foundational. When he says an AI company's technical approach won't work, it carries different weight than when a financial analyst says the same thing.

The xAI Financial Picture — $6.4 Billion in Losses

The SpaceX IPO filing, which became public in May 2026, revealed numbers about xAI that had previously been private: the company lost $6.4 billion in 2025. This is the first hard data on xAI's financials, and the figure is striking even in an industry known for large losses.

For context: OpenAI reportedly lost approximately $5 billion in 2024 and projects losses of $14 billion through 2026 before reaching profitability. Anthropic's losses are not publicly known but are estimated in a similar range. xAI's $6.4 billion loss for 2025 places it in the same financial league — but without having achieved the same model performance or enterprise traction.

Where did the $6.4 billion go?

Compute infrastructure. xAI built Colossus, reportedly one of the largest GPU clusters in the world, in Memphis, Tennessee. The cluster reportedly contains 100,000+ H100/H200 GPUs. At roughly $25,000-40,000 per GPU plus networking, power, and cooling infrastructure, the capital expenditure alone is in the billions.

Talent. xAI has reportedly hired AI researchers at compensation packages competitive with OpenAI and Anthropic — meaning $2-10 million annually for senior researchers. A research team of several hundred people at these compensation levels costs $500 million to $1 billion per year.

Training runs. Training Grok-3 and Grok-4 requires tens of thousands of GPUs running continuously for weeks or months. Each frontier training run costs an estimated $100-500 million in compute alone, and multiple runs are needed as experiments fail and parameters are adjusted.

Inference costs. Every query to Grok costs money in compute. If Grok has significant usage — and it does, integrated directly into X — those inference costs scale with usage.

The fundamental question LeCun is raising: is this spending producing commensurate results? Grok-3 and Grok-4 have not matched GPT-5.4 or Claude Fable 5 on major benchmarks. No independent evaluation has placed a Grok model at the frontier. If you're spending comparable amounts to OpenAI and getting worse results, the business case gets harder to make.

Is There Actually an AI Bubble?....

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On the other hand SpaceX, Xai's parent company, just signed another deal to lease GPUs, this one for $150 million per month following on the deal with Google for $920 million per month and 

See NextBigFuture, June 22:  SpaceX Has Another $150 Million Per Month Deal

There is also the $1.25 billion-per-month Anthropic deal but that is for a mix of Nvidia chips including older A100's, H100's and H200's.