Key Takeaways
- Eurozone annual inflation climbed to 3.2% in May, exceeding the European Central Bank's 2.0% target and marking its highest level since late 2023.
- Trump administration advisers are reportedly weighing government equity stakes in major AI companies as a condition for regulatory and export support.
- NATO Secretary General Mark Rutte hailed a tentative deal to reopen the Strait of Hormuz, signaling a potential de-escalation in the U.S.-Iran conflict.
- China’s State Council approved the 15th Five-Year Plan (2026-2030), prioritizing an "employment-first" strategy to create over 10 million jobs annually.
- The Stockholm District Court rejected a significant damage claim by Humana AB (HUM) against the Swedish state following a lengthy permit dispute.
Eurozone Inflation Hits Multi-Year Highs
Final data released Wednesday confirmed that Eurozone CPI rose to 3.2% year-on-year in May, up from 3.0% in April. The surge was primarily driven by a 10.8% spike in energy prices and persistent 3.5% services inflation, complicating the European Central Bank's path toward interest rate cuts this summer. Core inflation, which excludes volatile food and energy, also nudged higher to 2.6%, suggesting that price pressures are broadening across the regional economy.
Trump Advisers Propose Federal AI Equity Stakes
Advisers to President Donald Trump are discussing a controversial plan for the federal government to take equity stakes in leading artificial intelligence firms like OpenAI and Anthropic. According to reports from Semafor, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick are debating whether these stakes should fund individual "Trump Accounts" or a national sovereign wealth fund. The proposal comes as the administration intensifies export controls on advanced AI models, potentially using market access as leverage for government ownership.
Geopolitical Shifts: Hormuz Reopening and Ukraine Advances
In a major breakthrough for global energy markets, NATO's Mark Rutte described the proposed reopening of the Strait of Hormuz as a "major step forward" for international security. The move follows a tentative ceasefire agreement between the U.S. and Iran that has already seen Brent crude futures retreat toward $80 a barrel. Meanwhile, in Eastern Ukraine, the Russian Defence Ministry claimed its forces captured the settlement of Kutuzovka, continuing a slow but steady push in the Kharkiv region.
Corporate and Legislative Developments
In the Nordic markets, Humana AB (HUM) saw its shares under pressure after the Stockholm District Court rejected the company's damage claim against the state. The lawsuit sought compensation following a 2023 regulatory decision to revoke the operating permit of Humana Assistans, which was later overturned. Separately, China officially unveiled its 15th Five-Year Plan, focusing on "high-quality and full employment" through the development of the digital, green, and silver economies to insulate its labor market from external geopolitical shocks.
U.S. Political Deadlock Over FISA and Nominations
In Washington, a deal to extend Section 702 of the Foreign Intelligence Surveillance Act (FISA) has collapsed, creating a significant headache for Senate Republicans and Majority Leader John Thune. President Trump’s nomination of former SEC Chair Jay Clayton to lead the Office of the Director of National Intelligence (DNI) has so far failed to unstick the legislative gridlock. Analysts suggest the lapse in surveillance authorities could persist for weeks as lawmakers clash over privacy protections and executive appointments.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.