US backs rapid development of quantum computing - Semafor

US President Donald Trump signed executive orders to accelerate development of quantum computing, with the aim of creating a machine capable of scientific research by 2028. Recent progress has brought the previously futuristic technology closer to commercialization — several firms went public this year. Quantum computing is expected to speed drug discovery and materials science, but also to supercharge cyber warfare in both attack and defense; Google warned in March that firms should be ready for “post-quantum cryptography” by 2029. The orders are part of an increasingly tech-interventionist streak in the Trump administration, which has taken $2 billion in equity in quantum firms as well as stakes in Intel, and has floated buying into frontier AI firms.— Tom ChiversMore from Semafor FlagshipUS and Iran clash over peace talks narrative UK swelters in another record-breaking heatwaveChinese supercomputer declared world’s fastestYuan’s growing clout undermines WashingtonVenezuela faces record debt restructuringTech stocks tumble in Asia, USUS and Iran clash over peace talks narrative Updated Jun 24, 2026, 7:48am EDTJun 24, 2026, 11:48am UTCPostEmailWhatsappCopy linkCopy linkMajid Asgaripour/WANA/ReutersWashington and Tehran are battling to shape the narrative around peace talks, with both sides making contradictory claims about the proposed deal. US President Donald Trump said Iran agreed to full nuclear inspections; Iran said inspectors could not enter the most important sites. Vice President JD Vance said US and Qatari officials would oversee the unfreezing of Iranian assets; Iran denied that too. Trump likes to announce his preferred outcomes as agreed deals, The New York Times reported, and “the Iranians… have caught on,” employing their own strategy of “[denying] American statements immediately and publicly.” The contradictions show the two sides “fundamentally disagree with each other and they’re trying to paper over it,” one analyst said.— Tom ChiversADUK swelters in another record-breaking heatwaveUpdated Jun 24, 2026, 7:45am EDTJun 24, 2026, 11:45am UTCPostEmailWhatsappCopy linkCopy linkJack Taylor/ReutersSchools are closing early and parents are buying air conditioning units for classrooms as the UK faces another record-breaking heatwave. Temperatures are expected to reach 39°C (102°F) this week. Britain is warming fast: Summer 2025 was the hottest on record, and this year has seen new spring peaks. But UK housing stock — Europe’s oldest — and infrastructure is built for a cooler climate. Compounding the problem are stringent restrictions on AC, despite analysts arguing that because electricity demand peaks in winter, greater AC use in summer would help balance the grid. Continental Europe is suffering too: 40 people drowned in France trying to escape the record heat, Reuters reported, and Paris is having its own political row about AC.— Tom ChiversChinese supercomputer declared world’s fastestUpdated Jun 24, 2026, 7:00am EDTJun 24, 2026, 11:00am UTCPostEmailWhatsappCopy linkCopy linkKaren Pulfer Focht/ReutersA Shenzhen supercomputer was declared the world’s fastest, giving China the crown for the first time since 2017 and further ratcheting up the transpacific tech rivalry. The LineShine computer is notable not just for raw speed — it is about 20% faster than the California-based El Capitan, which has topped rankings since 2024 — but for using standard microprocessors, rather than the specialist GPUs that most supercomputers rely on. US companies have long had a technological lead over Chinese rivals, but “in at least a few sectors, that equation has flipped,” The New York Times argued. Batteries and solar panels are the most obvious examples, and China’s manufacturing advantage means it is now leading in robotics as well.— Tom ChiversADYuan’s growing clout undermines WashingtonUpdated Jun 24, 2026, 6:25am EDTJun 24, 2026, 10:25am UTCPostEmailWhatsappCopy linkCopy linkStringer/ReutersThe yuan’s growing clout is undermining Washington’s ability to impose sanctions on geopolitical rivals. Dollar transactions, which are settled by US banks that Washington can control, are used in about 80% of international trade finance.

The White House’s Iran negotiations rely on the dollar’s leverage, but Tehran has blunted that weapon by using alternative financial architecture, The Wall Street Journal reported, including payments in yuan or cryptocurrency, and adopting a Chinese alternative to the Swift banking network. Moscow has made similar moves since the imposition of Western sanctions in 2022, with 90% of trade with China reportedly settled in yuan or rubles. Yuan still only accounts for 6% of global trade finance, but that sum has tripled in five years.— Tom ChiversVenezuela faces record debt restructuringUpdated Jun 24, 2026, 6:22am EDTJun 24, 2026, 10:22am UTCPostEmailWhatsappCopy linkCopy linkLeonardo Fernandez Viloria/ReutersVenezuela is in far greater debt than previously believed, but the US-imposed regime change may provide the opportunity to restructure. The socialist-led country’s GDP has collapsed from $370 billion in 2012 to around $100 billion today. Caracas is expected to reveal a debt pile of $240 billion in the coming weeks, the Financial Times reported, compared to previous estimates of $150-$200 billion. It will offer creditors partial repayment in the largest-ever debt restructuring, eclipsing Greece’s $200 billion 2012 default, made more complex because Venezuela has so many creditors and the IMF will not be involved. Such an agreement was impossible before President Nicolás Maduro’s removal in January and the subsequent lifting of sanctions on Venezuelan dollar transactions.— Tom ChiversADTech stocks tumble in Asia, USUpdated Jun 24, 2026, 6:21am EDTJun 24, 2026, 10:21am UTCPostEmailWhatsappCopy linkCopy linkKim Hong-Ji/ReutersTurbulence in Asian tech stocks spread to Wall Street, with investors worried about rate hikes, massive spending, and overvaluation. Sandisk and Micron, memory-makers which had seen huge gains in recent months, both tumbled around 13% as part of a broader Nasdaq fall of 2.2%. Surges are often followed by rapid reversals, The Wall Street Journal reported, noting that the memory firms’ shares are still up 727% and 269%, respectively, this year. Investors are jittery, leaving markets unstable: South Korea’s KOSPI index in particular went on a rollercoaster ride, falling 10% on Tuesday before clawing a good chunk back. The index’s volatility is at a record high, the Financial Times reported.— Tom ChiversTop StoriesUS and Iran officially sign the peace deal Evelyn Hockstein/ReutersThe Fed’s Warsh era starts with a flurry of change, but steady ratesEric Lee/ReutersTrump defends Iran deal after markets forced his handEvelyn Hockstein/ReutersAI CEOs pitch G7 leaders on global standards forum for advanced modelsEvelyn Hockstein/ReutersTrump and Thune’s dynamic turns the Senate ‘very chaotic’Annabelle Gordon/ReutersTrump advisers weigh structure of AI stakesEvelyn Hockstein/Reuters Trump cancels hearing for replacement intel chief ClaytonJeenah Moon/Reuters Trump wants Iran in ‘rearview mirror’Tyre, Lebanon. Zohra Bensemra/ReutersThe Worldat a GlanceTrump defends Iran deal after markets forced his handUpdated Jun 17, 2026, 6:34pm EDTJun 17, 2026, 10:34pm UTCPostEmailWhatsappCopy linkCopy linkEvelyn Hockstein/ReutersUS President Donald Trump defended the Iran deal that offers several concessions to Tehran, saying Wednesday he wanted to avoid an “economic catastrophe.” It was an admission that the markets forced his hand, with the war driving up inflation and energy costs. Terms in the US draft include reopening the Strait of Hormuz in exchange for the unfreezing of billions in Iranian assets, the creation of a $300 billion reconstruction fund, and Iran agreeing to dilute its enriched uranium. It’s a “massive gamble,” The Wall Street Journal wrote, that “the Iranian regime will choose economic progress over nuclear development.” US officials cautioned that either side could walk away before a final deal, and Trump threatened to bomb Iran if they misbehaved.— Tasneem NashrullaUS and Iran officially sign the peace deal Updated Jun 17, 2026, 6:58pm EDTJun 17, 2026, 10:58pm UTCPostEmailWhatsappCopy linkCopy linkEvelyn Hockstein/ReutersThe presidents of both the US and Iran on Wednesday remotely signed the ceasefire agreement, which is now in effect. Iranian state media confirmed that the memorandum of understanding was finalized, with a foreign ministry spokesperson saying, “now it is time to test the implementation.” The agreement was officially set to be signed in a ceremony in Switzerland on Friday, but Axios reported that the countries discussed “accelerating the timetable” to open the Strait of Hormuz earlier.The following is a transcript of the US-Iran memorandum of understanding as read by a senior US official to reporters on Wednesday. Islamabad memorandum of understanding between the United States of America and the Islamic Republic of IranThe United States of America and the Islamic Republic of Iran have jointly agreed in good faith on such and such a date on the following:Paragraph one: The United States of America and the Islamic Republic of Iran and their allies in the current war, by signing this MOU, declare the immediate and permanent termination of military operations on all fronts, including in Lebanon, and undertake from now on not to initiate any war or any military operation against each other, and to refrain from the threat or use of force against each other, and ensuring the territorial integrity and sovereignty of Lebanon. The final deal will confirm the permanent termination of the war on all fronts, including in Lebanon, and other provisions of this paragraph.Paragraph two: The United States of America and the Islamic Republic of Iran undertake to respect each other’s sovereignty and territorial integrity and to refrain from interfering in each other’s internal affairs.Paragraph three: The United States of America and the Islamic Republic of Iran commit to negotiating and achieving the final deal in maximum of 60 days, extendable with mutual consent.Paragraph four: Immediately upon the signing of this MOU, the United States of America will begin the removal of its naval blockade and any disturbances or impediments against the Islamic Republic of Iran, and will fully end the naval blockade within 30 days. During this period, the traffic of vessels will be in proportion to the numbers of pre-war traffic being restored by the Islamic Republic of Iran.

The United States of America further undertakes to remove its forces from the proximity of the Islamic Republic of Iran within 30 days after the final deal.Paragraph five: Upon the signing of this MOU, Islamic Republic of Iran will make arrangements using its best efforts for the safe passage of commercial vessels with no charge for 60 days only from the Persian Gulf to the Sea of Oman, and vice versa. The traffic of commercial vessels will immediately start, in considering the need for removing the technical and military obstacles and demining by the Islamic Republic of Iran, will be instated within 30 days.

The Islamic Republic of Iran will conduct a dialogue with the Sultanate of Oman to define the future administration and maritime services in the Strait of Hormuz in discussion with other Persian Gulf littoral states in line with the applicable international law and the sovereign rights of coastal states of the Strait of Hormuz.Paragraph six: The United States of America undertakes with its regional partners to develop a definitive, mutually agreed plan with at least USD 300 billion for the reconstruction and economic development of the Islamic Republic of Iran. The mechanism for the implementation of this plan will be finalized as part of final deal within 60 days. All required licenses, waivers, and permissions needed for the relevant financial transactions will be graded by the United States of America in Paragraph Six.Paragraph seven: The United States of America undertakes to terminate all types of sanctions against the Islamic Republic of Iran, including the United Nations Security Council resolutions, i.e. IAEA Board of Governors resolutions, and all unilateral US sanctions, primary and secondary, in an agreed upon schedule as part of the final deal.

The Islamic Republic of Iran and the United States of America acknowledge the critical importance of the sanctions termination issue abovementioned, and expressed their intentions to immediately address these issues in the negotiations in order to achieve mutual agreement on them.Paragraph eight: The Islamic Republic of Iran reaffirms that it shall not procure or develop nuclear weapons.

The United States of America and the Islamic Republic of Iran have agreed to resolve the disposition of stockpile enriched materials, pursuant to a mechanism that will be mutually agreed upon in accordance with the schedule mentioned in paragraph seven with the minimum methodology to be downblending on site under the supervision of the IAEA.[The] two parties also agreed to discuss the issue of enrichment and other mutually agreed matters related to the Islamic Republic of Iran’s nuclear needs based on a satisfactory framework being agreed upon in the final deal. The final deal will confirm the provisions of this paragraph.

The United States of America and the Islamic Republic of Iran acknowledge the critical importance of the nuclear issues above mentioned and express their intention to immediately address these issues in the negotiation in order to achieve mutual agreement on them.Paragraph nine: Pending the final deal, the United States of America and the Islamic Republic of Iran agree to maintain the status quo.

The Islamic Republic of Iran will maintain the current status quo of its nuclear program, and the United States of America will not impose any new sanctions and will not deploy additional forces in the region.Paragraph 10: The United States of America undertakes that immediately upon the signing of this MOU, and until the termination of sanctions, the US Department of Treasury will issue waivers for the export of Iranian crude oil, petroleum products, and derivatives, and all associated services, including banking transactions, insurances, transportation, etc.Paragraph 11: The United States of America undertakes to make fully available for use the frozen or restricted funds of the Islamic Republic of Iran upon the implementation of this MOU.

The United States of America and the Islamic Republic of Iran will mutually agree on the procedures related to the release of these funds during the negotiations. Such funds, whether retained in the original account or transferred, shall be made fully usable for payment to any ultimate beneficiary designed by the Central Bank of the Islamic Republic of Iran.

The United States of America undertakes to issue all necessary licenses and authorizations accordingly.Paragraph 12: The United States of America and the Islamic Republic of Iran agree that an executive mechanism will be established to monitor the successful implementation of this MOU and the future compliance of the final deal.Paragraph 13: After signing this MOU and subject to the beginning of the implementation of paragraphs 1, 4, 5, 10, and 11 of this MOU, and the continuing implementation of these measures, the United States of America and Republic of Iran will start negotiations regarding the final deal exclusively on the other paragraphs.Paragraph 14: The final deal will be endorsed by a binding UNSC resolution.— Shelby TalcottGlobal central banks grapple with warUpdated Jun 17, 2026, 6:44pm EDTJun 17, 2026, 10:44pm UTCPostEmailWhatsappCopy linkCopy linkWolfgang Rattay/ReutersGlobal central banks’ responses to the Iran war’s energy crisis reveal different underlying concerns. The US Fed held rates steady and hinted at future hikes; the ECB last week increased rates, as did Japan’s central bank on Tuesday, all of them trying to tamp down the Iran war-fueled inflation. While the booming US economy provides room for hikes, Europe risks slowing its already sluggish economy. But increased borrowing costs in the US could make local debt more expensive across Africa, forcing officials there to raise rates themselves, Semafor’s Africa editor wrote. The People’s Bank of China, meanwhile, could look to ease rates, as threats to growth mount amid weak consumer spending.— Tom ChiversEU eyes unified China approachUpdated Jun 17, 2026, 6:51pm EDTJun 17, 2026, 10:51pm UTCPostEmailWhatsappCopy linkCopy linkKim Kyung-Hoon/ReutersThe EU is increasingly united on the need for a tough approach to China. Europe has long been nervous about cheap, state-subsidized Chinese goods undermining the continent’s manufacturing industries. Paris has led efforts to respond, calling for new tariffs and other measures, but Berlin has been more wary, since Chinese buyers supported much of Germany’s car industry. But the balance of risks has changed, with Chinese domestic demand falling and its exports expanding. The bloc has no appetite for a full-scale trade war with Beijing, a European Council on Foreign Relations analyst argued, but it looks increasingly prepared to deploy an array of smaller measures: “Europe’s era of acquiescence is over.”— Tom ChiversTrump praises Modi as ‘angel,’ ‘killer’Updated Jun 17, 2026, 6:56pm EDTJun 17, 2026, 10:56pm UTCPostEmailWhatsappCopy linkCopy linkEvelyn Hockstein/ReutersUS President Donald Trump said he would visit India soon, an apparent effort to smooth over rocky relations with New Delhi. At their G7 meeting Wednesday, Trump praised Indian leader Narendra Modi as an “angel” but “total killer,” referencing the yearlong tough negotiations that are yet to produce a trade deal between the two countries. A “fusillade of actions” by Trump have hurt India’s economy and pride, The New York Times wrote, namely imposing tariffs on Indian goods, punishing India for purchasing Russian oil, and drawing closer to India’s rival Pakistan. Most recently, New Delhi protested against US strikes that killed three Indian sailors. Whether the thawing is substantive or “performative theater” from two strongman-style leaders remains to be seen.— Tasneem NashrullaThe Fed’s Warsh era starts with a flurry of change, but steady ratesUpdated Jun 17, 2026, 5:52pm EDTJun 17, 2026, 9:52pm UTCPostEmailWhatsappCopy linkCopy linkEric Lee/ReutersNew Federal Reserve Chair Kevin Warsh rolled out many new initiatives at the central bank on Wednesday, from balance sheet management to public communications — and a potential rebrand for more hawkish policy.“I am pleased to report that members of the FOMC are unambiguous and unanimous: This committee will deliver price stability,” Warsh declared after policymakers voted unanimously to hold interest rates steady.It was a reframing of a decision that shrugged off President Donald Trump’s ongoing campaign for lower rates in the face of recently accelerating inflation. Warsh has to walk a tightrope at the central bank, avoiding the type of strong-arming Trump tried with former Chair Jerome Powell while delivering his previewed overhaul of key elements of the Fed without isolating his new colleagues — including Powell.Warsh seemed to hit the mark on Wednesday as he announced his first changes at the central bank. The shifts extend to the much-analyzed statement the Fed releases after meetings, which as of Wednesday did not include language indicating officials’ next move.Warsh, who was sworn in last month, told reporters that his aim is “the pursuit of truth,” adding: “I think we’re going to come up with some new and interesting things.”The new chair was also the only policymaker to not pencil in an interest-rate move for the rest of the year after he spoke out against the so-called dot plot during his Senate confirmation. He also declined again to commit to regular press conferences like his predecessor, instead reiterating that “when you have one, you want to make sure you have something important to say.”Yet the specter of the Trump administration’s previous attempts to hem in the Fed will linger for Warsh. Illustrating the low chances of Trump getting his long-sought rate cut, nine out of 19 officials penciled in an interest-rate hike this year at the close of this week’s meeting.In this article:The NewsKnow MoreNotableWarsh described a series of five Fed task forces that would tackle issues he called “central to the broad conduct of monetary policy,” most of which he referenced during his confirmation.They’ll evaluate how the Fed teases its next moves, how it structures its bond portfolio, how it gathers data, how recent technologies like AI impact productivity, and how it evaluates the root causes of inflation — though not whether it should revisit its inflation target of 2 percent.Warsh is still talking to some of “the very best minds” in and out of the Fed, he said, across “business and economics and the academy and technology and the rest” who might serve on the task forces.Leaning on Fed staff, those recruits will begin work over the next couple of weeks to “ultimately propose next steps for policymaker consideration” — ideally between the fall and the end of the year, Warsh said.“What we’ve given markets is a new chapter for the central bank; some fresh thinking,” Warsh said. “What we’ve given markets and households and businesses, I think, is a commitment to ask ourselves hard questions, such that we can deliver on the promises that we’ve made.”He added a forecast of more shakeups to come: “This is a lot of change for financial markets to digest.”Trump told reporters Wednesday that the Fed’s decision Wednesday was “all right,” adding that it was “hard to believe” policymakers might hike rates.— Eleanor MuellerOil falls below $80 as Hormuz opensUpdated Jun 17, 2026, 7:28am EDTJun 17, 2026, 11:28am UTCPostEmailWhatsappCopy linkCopy linkStringer/ReutersOil and gas prices fell as the US-Iran truce pointed towards the freer flow of fossil fuels through the Strait of Hormuz. Several tankers passed through the waterway, which has in effect been closed for months. Multiple outlets reported that the US would allow Tehran to sell its oil freely, sending crude prices to below the symbolically important $80 mark. European gas prices also fell sharply, giving the continent a chance to restock ahead of winter, Goldman Sachs economists noted. However, the longer-term consequences could be more profound and bifurcated, a Reuters columnist argued, with governments increasing their support for electrification and renewables, as well as ramping up purchases of coal to reduce reliance on Middle East transit routes.— Prashant RaoAI CEOs pitch G7 leaders on global standards forum for advanced modelsUpdated Jun 17, 2026, 6:40pm EDTJun 17, 2026, 10:40pm UTCPostEmailWhatsappCopy linkCopy linkEvelyn Hockstein/ReutersAI executives who met with heads of state at the G7 summit Wednesday discussed how to create an international forum, potentially helmed by the US, that could establish global standards for advanced models — an idea floated by OpenAI CEO Sam Altman.Altman, who sat between President Donald Trump and Egyptian President Abdel Fattah el-Sisi, was the first CEO to speak at the hours-long lunch, an OpenAI official said.OpenAI’s Chris Lehane told reporters after that “there was really a coalescing amongst the countries and the businesses … in the room around this idea … of being able to try to create; design; develop a forum or a space for the different democratic countries to be able to work together to ultimately see if there’s a way to establish some type of standards,” adding that the hope was those standards “would be an avenue or pathway to helping to ensure ongoing and continued access to the frontier models.”The OpenAI official said that Canadian Prime Minister Mark Carney, a former central banker, likened such a forum to the Financial Stability Board. Carney chaired the FSB, which G20 leaders created in response to the Great Recession, from 2011 to 2018.Anthropic’s Dario Amodei, Google’s Demis Hassabis and Meta’s Alexandr Wang; Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Secretary of State Marco Rubio; and France President Emmanuel Macron, UK Prime Minister Keir Starmer, and Germany Chancellor Friedrich Merz were among those also in attendance.The talks come on the heels of a decision by the Trump administration to shut down foreign access to Anthropic’s Mythos and Fable models last week amid security concerns.— Eleanor MuellerUS officials downplay details of Washington-Tehran dealUpdated Jun 17, 2026, 7:25am EDTJun 17, 2026, 11:25am UTCPostEmailWhatsappCopy linkCopy linkMajid Asgaripour/WANA via ReutersUS officials sought to play down the details of a Washington-Tehran interim deal, as analysts said Iran appeared to have won major concessions. Though not officially published, the widely seen draft grants the Islamic Republic the right to sell its oil on global markets immediately, alongside the prospect of significant further economic relief, indicating “Iran has emerged from the conflict in a stronger strategic position,” the Institute for the Study of War said. American negotiators told CNN the document did not account for backroom agreements and was intentionally vague to leave space for future negotiation. Politico’s senior foreign affairs correspondent said the deal offered an “escape hatch,” noting many agreements rely on “deceit or, at least, intentional confusion.”— Prashant RaoIran war highlights fragile order in Middle EastUpdated Jun 17, 2026, 7:16am EDTJun 17, 2026, 11:16am UTCPostEmailWhatsappCopy linkCopy linkMajid Asgaripour/WANA/ReutersThe Iran war has accelerated the fragmentation of the Middle East, analysts wrote. With a provisional agreement due to be signed Friday that cements a truce between Washington and Tehran, countries across the region are picking up the pieces from the conflict. Far from imposing a new balance of power, a Center for Strategic and International Studies scholar wrote in Foreign Policy, the war showed the Middle East is “a region in which every actor can impose costs, but none can impose order.” Meanwhile, it “compromised the United States’ status as the Middle East’s main security guarantor,” a Biden-era official argued in Foreign Affairs.— Prashant RaoTrump wants Iran in ‘rearview mirror’Updated Jun 17, 2026, 12:22pm EDTJun 17, 2026, 4:22pm UTCPostEmailWhatsappCopy linkCopy linkTyre, Lebanon. Zohra Bensemra/ReutersUS President Donald Trump said Tuesday he hoped the Iran war would be in the “rearview mirror” soon, but details of the ceasefire deal are still a mystery and Israel’s presence in Lebanon remains a thorny issue. The US vice president suggested the initial agreement was a “very general document”: The Wall Street Journal reported that the deal allows Iran to immediately begin selling oil and fuel, and Iran said that it ensures Israel will immediately withdraw from Lebanon — but Israel insisted its military will remain. Trump admonished Israel for “vicious” attacks in Lebanon and reportedly refused Israel’s request to access the deal’s text, while striking a conciliatory tone on Iran, saying he was dealing with “very rational people.”— Tasneem NashrullaTrump signals Ukraine not a priorityUpdated Jun 16, 2026, 6:34pm EDTJun 16, 2026, 10:34pm UTCPostEmailWhatsappCopy linkCopy linkThibault Camus/Pool via ReutersPresident Donald Trump suggested Tuesday that the Ukraine war was not a priority for the US, a striking shift in tone a day after he said he would turn his focus to ending it after announcing the Iran deal. Trump’s comments that the US had “nothing to do” with a faraway war will worry Washington’s European allies who want to redirect Trump’s attention to the conflict he once vowed to end in 24 hours. Instead, Trump has cut military aid to Ukraine, leaving Europe as Kyiv’s biggest backer. There have been signs of movement, though: Trump signaled a return to sanctions on Russian oil shipments and met with Ukraine’s president to discuss providing anti-air missiles.— Tom ChiversSpaceX overtakes Amazon in value, raising concerns of a bubbleUpdated Jun 16, 2026, 6:43pm EDTJun 16, 2026, 10:43pm UTCPostEmailWhatsappCopy linkCopy linkKirsty Wigglesworth/Pool via ReutersSpaceX shares jumped further Tuesday, making the company more valuable than Amazon but further raising concerns of a bubble. The space giant’s IPO last week broke records and investors have only piled in since. But the numbers are startling: Its price-to-sales ratio is almost 150, compared to less than four for Amazon, and while Amazon made $77 billion last year, SpaceX made a $4.9 billion loss. The soaring value “feels like one of those meme stocks,” an analyst told Reuters: “You have to be very, very careful.” SpaceX itself is pushing ahead, completing a $60 billion deal to buy coding startup Cursor to advance its AI side, alongside building massive data centers in Tennessee.— Tom ChiversDeepSeek fundraises $7.4 billionUpdated Jun 16, 2026, 6:52pm EDTJun 16, 2026, 10:52pm UTCPostEmailWhatsappCopy linkCopy linkTingshu Wang/ReutersDeepSeek became China’s most valuable AI startup after raising $7.4 billion, but its $50 billion valuation is eclipsed by the astronomical market values of its US rivals. The upstart upended Silicon Valley with its cost-effective open-source model last year, and is seen as leading Beijing’s race against the US. While it marks one of China’s largest private tech fundraisings, US frontier labs Anthropic and OpenAI recently raised $65 billion and $122 billion respectively. The disparity is largely due to geopolitical constraints, Reuters reported, which confine DeepSeek’s fundraising to China and limit its access to American hardware, making it pointless to “match the multi-billion-dollar computing budgets” of US rivals, an analyst said.— Tasneem NashrullaEU removes tariffs from US goodsUpdated Jun 16, 2026, 6:57pm EDTJun 16, 2026, 10:57pm UTCPostEmailWhatsappCopy linkCopy linkYves Herman/ReutersThe European Parliament approved its trade deal with the US, agreeing to reduce tariffs on industrial and agricultural goods. Washington agreed to cap its own tariffs. The deal was agreed last year, but votes were postponed after US President Donald Trump threatened to annex Greenland, leading parliamentarians to demand extra safeguards. The delays have frustrated Trump, who threatened tariff hikes if a deal wasn’t made soon, but Brussels no longer trusts Washington and demanded exit clauses. Europe is fighting a trade war on two fronts: At the G7, France’s president called for stronger action against Chinese overproduction, including protecting European industries from subsidized imports, although the odds of a coordinated EU position on Beijing are “exactly zero,” one analyst said.— Tom ChiversFrance’s spy agency drops PalantirUpdated Jun 16, 2026, 7:03pm EDTJun 16, 2026, 11:03pm UTCPostEmailWhatsappCopy linkCopy linkDado Ruvic/ReutersFrance’s spy agency ended its contract with US-based software giant Palantir and replaced it with a domestic rival. Europe’s tech sovereignty concerns have risen after the US government blocked foreign nationals’ access to Anthropic’s frontier models. Palantir in particular has faced scrutiny, the Financial Times noted: Its deal with the UK health service has drawn political and public pushback, and Germany has snubbed Palantir for defense contracts. Washington’s Anthropic decision has underscored the need for non-US frontier AI, The Verge argued, and several countries are racing to establish their own. But blocking US tools comes with risks. European-made alternatives are inferior, and European-only procurement would leave the continent lagging behind in military and cybersecurity applications, a recent analysis argued.— Tom ChiversGlobal EV sales surge during Iran warUpdated Jun 16, 2026, 7:08pm EDTJun 16, 2026, 11:08pm UTCPostEmailWhatsappCopy linkCopy linkSebastian Castaneda/ReutersGlobal EV sales are expected to hit 23 million this year, an 11% jump from 2025, as the Iran war drives demand for cheaper electric mileage. Thanks to falling lithium-ion prices, EVs are becoming more affordable just as gas prices have risen, prompting more drivers to make the switch even as demand slows in the world’s largest market: China’s domestic EV sales slumped last month, but its exports soared by 73%, reflecting the extent to which “war in Iran has changed the math” around EVs, The New York Times wrote. In the US, it’s nearly three times more expensive to fuel a gas car as an EV, and Carbon Brief found that the UK’s EV drivers save nearly $1,500 annually over their petrol counterparts.— Brendan RuberryChinese retail sales fall while industrial output risesUpdated Jun 16, 2026, 9:12am EDTJun 16, 2026, 1:12pm UTCPostEmailWhatsappCopy linkCopy linkGo Nakamura/ReutersChina’s economic imbalance worsened in May as retail sales fell at the fastest pace in years, while industrial output accelerated, new data showed. Analysts have long warned that the world’s second-largest economy is increasingly travelling along two tracks: While tech-driven exports soar, domestic retail sales remain paltry as a real estate market crash and cooling economic growth weigh on demand. In response, some experts have called on Beijing to launch an economic stimulus package, a step authorities have so far been unwilling to take, worried by the country’s existing mountain of debt. “Despite the imbalance between robust factory supply and deteriorating domestic demand, Beijing is showing patience,” Commerzbank analysts wrote.— Jeronimo GonzalezBank of Japan hikes rates to highest level in over 30 yearsUpdated Jun 16, 2026, 9:11am EDTJun 16, 2026, 1:11pm UTCPostEmailWhatsappCopy linkCopy linkKim Kyung-Hoon/ReutersThe Bank of Japan raised rates to their highest level in more than 30 years, one of a string of major central banks tightening monetary policy in part because the Iran war is fueling inflation risks worldwide. The decision comes ahead of Federal Reserve and Bank of England meetings this week, and follows the European Central Bank’s decision to increase borrowing costs. Japan’s benchmark stock index hit a record after the announcement. Yet new research suggests that rate hikes take several years to impact inflation, and ultimately affect economies in uneven ways: ECB increases in 2022 are still “working their way through,” ING argued, while in the US rate hikes have had the unintended effect of boosting housebuilding.— Prashant RaoG7 leaders convene in France amid signs of discord Updated Jun 16, 2026, 9:10am EDTJun 16, 2026, 1:10pm UTCPostEmailWhatsappCopy linkCopy linkThibault Camus/Pool via ReutersWashington’s G7 allies hoped myriad signs of discord would not once again torpedo a leaders’ summit that has been carefully built to placate the US. Longtime transatlantic partners now differ on issues ranging from the conduct and conclusion of the Iran war to support for Ukraine; meanwhile, Japan fears the US is prioritizing accommodating China over backing its Asian allies. Bloomberg reported that agreeing a summit communiqué was “no longer a priority given divisions with the US issues from trade to climate,” The Wall Street Journal said European countries were “just trying to avoid a fight,” and CNN noted that US President Donald Trump “has repeatedly insulted most of his [G7] counterparts over the last several months.”— Prashant RaoUkraine talks set to return to the foreUpdated Jun 16, 2026, 9:10am EDTJun 16, 2026, 1:10pm UTCPostEmailWhatsappCopy linkCopy linkThomas Peter/ReutersTalks over the Ukraine war looked set to return to the fore after months of being overshadowed by the Middle East conflict. US President Donald Trump said he would soon turn his attention to the Moscow-Kyiv standoff after his administration agreed a truce with Iran, while the EU formally opened accession talks with Ukraine. Russia’s economy has been struggling and its battlefield progress has ground to a halt, while Ukraine faces a manpower and materiel shortage. Still, the revival of Washington’s peacemaking efforts is not necessarily welcome: European officials fear American involvement risks worsening transatlantic ties. “Having Trump be distracted was not necessarily a bad thing,” an EU diplomat told Politico.— Prashant RaoBroad skepticism over Iran-US truceUpdated Jun 16, 2026, 10:57am EDTJun 16, 2026, 2:57pm UTCPostEmailWhatsappCopy linkCopy linkStringer/File Photo/ReutersSkepticism abounded among allies, officials, and executives over the details and durability of the US truce with Iran. The Trump administration has insisted the Strait of Hormuz — which has in effect been closed for months — will reopen by Friday, but no official document has been released outlining the deal between Washington and Tehran. European powers have voiced hesitation, notably over whether Israel will cease its offensive in Lebanon, an Iranian demand; the CIA director has reportedly questioned Iran’s willingness to make concessions; Republican US senators have been reluctant to praise the deal; and Israel fears the agreement takes the pressure off Iran. Meanwhile, shipping executives say it will take months for traffic to reach pre-war levels.— Prashant RaoUS-Iran deal relieves energy marketsUpdated Jun 15, 2026, 6:41pm EDTJun 15, 2026, 10:41pm UTCPostEmailWhatsappCopy linkCopy linkStringer/ReutersThe US-Iran deal to reopen the Strait of Hormuz eased energy markets, bringing oil prices to a three-month low on Monday, but analysts warned that restoring global fuel supplies would take far longer. US President Donald Trump insisted the waterway will reopen toll-free on Friday, but shipping companies, insurers, oil producers, Washington’s European allies, and even members of Trump’s administration remain cautious: Details of the agreement aren’t public, with Washington and Tehran offering conflicting accounts on the toll and timelines. Doubts over the deal’s durability may give pause to shipowners and test the willingness of the Gulf’s energy producers to bring their infrastructure back online. “It’s going to take time for people to feel comfortable,” an energy analyst said.— Tasneem NashrullaAnthropic comes to Washington to meet White House officialsUpdated Jun 15, 2026, 6:49pm EDTJun 15, 2026, 10:49pm UTCPostEmailWhatsappCopy linkCopy linkBhawika Chhabra/ReutersAnthropic staff were set to meet senior White House officials Monday after the US government restricted access to the firm’s most advanced AI models. The Trump administration blocked foreign nationals’ use of Fable and Mythos, citing security concerns: The models are highly cyber-capable, and Anthropic only released Mythos to select organizations to plug security vulnerabilities. But the move comes against a backdrop of enmity, after the Pentagon branded Anthropic a “supply chain risk” over the latter’s refusal to allow its models to be used in fully autonomous weapons. Ironically, the US government’s restrictions could help cyberattackers; open-source models are increasingly powerful, and since hackers tend to use those, limiting frontier AI access will hurt institutions’ ability to build defenses, an open-source AI platform argued.— Tom ChiversSpaceX extends record-breaking debutUpdated Jun 15, 2026, 6:54pm EDTJun 15, 2026, 10:54pm UTCPostEmailWhatsappCopy linkCopy linkJoe Skipper/ReutersSpaceX shares rose 6% in early trading Monday, extending an already record-breaking stock market debut, suggesting that investor appetite for marquee tech names is still strong despite concerns of a bubble. The space giant is yet to turn a profit, but its revenues have grown exponentially and its Starlink arm dominates the space broadband market, while it is expanding into AI infrastructure as demand increases. One investor warned this month that equity markets are showing signs of a bubble comparable to 2000 or 1929, but others argue that the upward movement is driven by earnings rather than froth. Lenders, at least, are still buying the boom: Nvidia drew $85 billion in orders for a $25 billion bond issuance.— Tom ChiversRussia likely culprit in UK arson attacksUpdated Jun 15, 2026, 7:00pm EDTJun 15, 2026, 11:00pm UTCPostEmailWhatsappCopy linkCopy linkCarlos Jasso/Pool via ReutersRussia was behind arson attacks on UK Prime Minister Keir Starmer’s properties, the BBC reported. Two men were convicted Monday, and the BBC’s investigation found evidence that a young Russian diplomat had recruited the pair. Moscow regularly recruits young men of various nationalities — the Starmer arsonists were Ukrainian-born — as proxies in its shadowy hybrid warfare campaigns, Reuters reported. More than 1,100 Ukrainians, a fifth of them minors, have been accused of committing arson, terrorism, or sabotage, apparently Russian-backed, since 2022. In Britain, the tactic is partly a response to necessity, because the government expelled 600 Russian operatives, including 400 suspected spies, after the 2018 poisoning of a former Russian double-agent. Moscow also backs cyber-warfare campaigns and sabotage of undersea cables.— Tom ChiversTaipei taps US firms in drone pushUpdated Jun 15, 2026, 7:05pm EDTJun 15, 2026, 11:05pm UTCPostEmailWhatsappCopy linkCopy linkBen Blanchard/ReutersTaiwan’s drone ambitions are getting a boost from the private sector despite a massive budgetary setback. A US dronemaker is partnering with a Taiwanese tech firm to build scalable systems for the country’s military, as the rush to augment autonomous defense capabilities intensifies on both sides of the strait. China dominates the global drone supply chain, spurring Taiwan to build a domestic ecosystem, with the island’s exports to Europe surging in the last two years. But the industry suffered a serious blow when legislators culled the entire drone production program from its recent budget. Meanwhile, in a rare overseas exhibition, one of China’s largest defense contractors demonstrated its drone manufacturing process, in a potential play for Middle Eastern buyers, SCMP reported.— Brendan RuberryUK to ban social media for under-16sUpdated Jun 15, 2026, 7:10pm EDTJun 15, 2026, 11:10pm UTCPostEmailWhatsappCopy linkCopy linkChris J. Ratcliffe/ReutersThe UK announced a social-media ban for under-16s, a move that follows other countries but clashes with the government’s other priorities. The ban will include Instagram, TikTok, and other platforms as well as YouTube but not messaging apps like WhatsApp. The move is popular, with polls finding 74% support, although the evidence for both the mental health impacts of social media and the efficacy of bans is disputed. But the British government is also passing legislation allowing 16-year-olds to vote. “You… ultimately have to decide whether 16-year-olds are sovereign adults,” a Financial Times columnist wrote, and either they should have access to the same information environment as other voters or “you need to move away from votes at 16.”— Tom ChiversAnalyst voice caution over US-Iran dealUpdated Jun 15, 2026, 8:45am EDTJun 15, 2026, 12:45pm UTCPostEmailWhatsappCopy linkCopy linkAmirhosein Khorgooi/ISNA/WANA via ReutersStock markets surged and oil prices plummeted after Washington and Tehran reached a deal to reopen the Strait of Hormuz, though analysts voiced caution over the agreement’s prospects. US President Donald Trump said ships could traverse the waterway within days and would not be charged a toll, but a Senate ally warned that “Iran’s view of the agreement seems different.” Commerzbank’s chief economist said in a note to clients that he anticipated “occasional setbacks,” while a prominent DC expert described the agreement as “perhaps, the end of the beginning.” An executive told the Financial Times he was “pessimistic” about the prospects for any deal, with the outlet noting that clearing the strait’s oil-and-gas backlog could take weeks.— Prashant RaoRussia fires huge aerial barrage at UkraineUpdated Jun 15, 2026, 8:47am EDTJun 15, 2026, 12:47pm UTCPostEmailWhatsappCopy linkCopy linkUkrainian Presidential Press Service/Handout via ReutersRussia fired another huge aerial barrage at Ukraine, killing at least 10 people, while Kyiv intensified its drone campaign against Moscow-controlled territory, underscoring the broad shift in their war from ground-based combat to the skies. Analysts noted that Russia had recently begun increasing its manufacture and use of aerial weapons, while Ukraine is appealing for replenishment of its dwindling stores of Patriot interceptors to protect its airspace. Kyiv, meanwhile, is fighting an intense drone campaign focused on cutting off Russian access to Crimea, aiming to limit the Kremlin’s supply lines for battles elsewhere and potentially forcing Moscow to make “some very hard choices,” a Kyiv-based analyst told the Financial Times.— Prashant RaoWhite House’s Anthropic block set to dominate G7Updated Jun 15, 2026, 8:46am EDTJun 15, 2026, 12:46pm UTCPostEmailWhatsappCopy linkCopy linkDado Ruvic/Illustration/ReutersThe White House’s decision to block foreigners’ access to Anthropic’s cutting-edge AI model looks set to dominate a G7 summit that opens today in France. The sudden move sparked alarm among Western allies: The EU said the decision underlined the bloc’s need for “technological sovereignty,” while Canada’s leader argued it showcased the risk of relying on a small cluster of powerful US tech firms. Such so-called middle powers have largely trailed in the AI race behind the US and China, with American efforts in particular dwarfing those of transatlantic rivals: France’s leading AI firm, Mistral, is reportedly in talks to raise funding at a valuation of about $23 billion — roughly 40 times smaller than Anthropic’s estimated valuation.