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Cristiano Ronaldo Hits Historic $300 Million to Top Forbes Highest-Paid Athletes List Again

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Cristiano Ronaldo is not yet ready to retire from the Portugal team

MADRID — Cristiano Ronaldo earned a record $300 million in the 2025-26 season to top the Forbes list of the world’s highest-paid athletes for the fourth consecutive year, according to the publication’s annual ranking released on May 22, 2026.

The 41-year-old Portugal captain and Al-Nassr forward collected $235 million in salary from the Saudi Pro League club and an additional $65 million from endorsements and commercial partnerships, Spanish outlet AS reported. The total matches the all-time single-year record previously set by boxer Floyd Mayweather.

Ronaldo’s earnings reflect the growing financial power of football and the impact of Saudi Arabia’s investments in the sport. He has played for Al-Nassr since December 2022.

Top 10 Highest-Paid Athletes 2026

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Forbes released the following top 10 list:

  1. Cristiano Ronaldo (Football, Al-Nassr) — $300 million ($235 million salary + $65 million endorsements)
  2. Saul “Canelo” Alvarez (Boxing) — $170 million ($160 million prize money + $10 million endorsements)
  3. Lionel Messi (Football, Inter Miami) — $140 million ($70 million salary + $70 million endorsements)
  4. LeBron James (Basketball) — $138 million ($52 million salary + $86 million endorsements)
  5. Shohei Ohtani (Baseball) — $127 million ($2.6 million salary + $125 million endorsements)
  6. Stephen Curry (Basketball) — $125 million ($60 million salary + $65 million endorsements)
  7. Jon Rahm (Golf) — $106 million ($97 million prize money + $9 million endorsements)
  8. Karim Benzema (Football, Al-Ittihad) — $104 million ($100 million salary + $4 million endorsements)
  9. Kevin Durant (Basketball) — $103 million ($54 million salary + $49 million endorsements)
  10. Lewis Hamilton (Formula 1) — $100 million ($70 million salary + $30 million endorsements)

Lionel Messi, playing for Inter Miami in Major League Soccer, placed third with $140 million. Karim Benzema, another former Real Madrid striker now with Al-Ittihad in Saudi Arabia, finished eighth with $104 million.

Saudi Arabia’s Role

Saudi Arabia’s investment in football has significantly influenced athlete salaries. The Saudi Pro League has attracted several high-profile players in recent years, contributing to the elevated earnings for Ronaldo and Benzema. The kingdom continues to develop its sports infrastructure and global profile through clubs like Al-Nassr and Al-Ittihad.

Ronaldo’s Career Earnings

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Ronaldo has consistently ranked among the highest-paid athletes. His $300 million haul in 2025-26 marks the first time the $300 million threshold has been reached since Mayweather set the record. The Portugal international has maintained strong commercial appeal with long-term partnerships including Nike, Clear, and other global brands.

At age 41, Ronaldo continues to perform at a high level for Al-Nassr, scoring regularly in the Saudi league and contributing for the Portugal national team. He remains one of football’s most marketable figures with a massive global fan base.

Messi’s Position

Lionel Messi earned $140 million in his first full season with Inter Miami. The eight-time Ballon d’Or winner split earnings between salary and endorsements. His move to Major League Soccer in 2023 has boosted the league’s visibility and commercial value.

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Broader List Insights

Boxer Canelo Alvarez ranked second with $170 million, primarily from prize money. NBA stars LeBron James, Stephen Curry and Kevin Durant all exceeded $100 million, driven by a combination of salaries and endorsement deals. Baseball’s Shohei Ohtani earned the highest off-field income on the list at $125 million.

Golf’s Jon Rahm and Formula 1 driver Lewis Hamilton rounded out the top 10 with strong earnings from prize money and sponsorships.

Industry Trends

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The Forbes list highlights the continued growth of athlete earnings across sports. Football and basketball dominate the upper ranks, while individual sports such as boxing, golf and auto racing also feature prominently. Endorsement income has become increasingly important, often surpassing on-field or in-ring earnings for many athletes.

Saudi Arabia’s sports investments have reshaped the global landscape. The arrival of players like Ronaldo and Benzema has elevated the Saudi Pro League’s profile and financial standing.

Ronaldo’s Impact

Ronaldo joined Al-Nassr after leaving Manchester United in late 2022. His presence has drawn record viewership and sponsorship interest to the league. The forward has scored over 50 goals in multiple seasons with the club and continues to break scoring records.

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His commercial portfolio includes clothing lines, fragrances, hotels and fitness brands. Ronaldo maintains one of the largest social media followings among athletes, which enhances his endorsement value.

Comparison With Previous Years

Ronaldo previously topped the Forbes list in 2023, 2024 and 2025. His earnings have grown steadily with new contracts and sponsorship deals. The 2025-26 season marked a significant jump, driven largely by his Al-Nassr salary structure.

Messi has also seen increased earnings since joining Inter Miami, benefiting from Apple and Adidas partnerships tied to the league.

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Global Sports Economy

The rise in top athlete earnings reflects broader trends in sports commercialization. Broadcasting deals, sponsorships and digital media have increased revenue streams. Saudi Arabia’s Public Investment Fund has played a major role through ownership stakes in multiple clubs.

The 2026 Forbes list comes as the football world prepares for the expanded 48-team World Cup in the United States, Canada and Mexico. Ronaldo has not yet confirmed his participation with Portugal, but his club form remains strong.

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Daveigh Chase, Child Star Who Voiced Lilo and Terrified Audiences in ‘The Ring,’ Dies at 35

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Selena Gomez

Daveigh Chase, the actress who gave voice to one of Disney animation’s most beloved characters while simultaneously terrifying moviegoers as a horror icon, died Tuesday in Los Angeles. She was 35.

Her boyfriend, Roy Hernandez, confirmed her death, saying Chase died from meningitis and an infection in her blood that caused septic complications and ultimately led to her body shutting down. Her father also confirmed her death to the New York Times, saying she had been homeless and living in Los Angeles with her boyfriend and that she had been struggling with drugs since the age of 13.

Chase had been admitted to a hospital in Los Angeles earlier this month due to malnutrition. Her boyfriend had recently set up a GoFundMe page for the ailing Chase, in which he wrote that she had been diagnosed with meningitis and several serious blood infections and that her condition had become critical.

In the GoFundMe page, Hernandez acknowledged that Chase had experienced a difficult childhood and a painful falling out with her family, and that she had struggled to find safety and happiness in downtown Los Angeles. He wrote that when the two met, he promised to protect her and give her the love and comfort she deserved, and that together they had found moments of happiness and hope.

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Born in Las Vegas and raised in Albany, Oregon, Chase launched her career as a child actor at age seven, when she appeared in commercials. She won the role of Lilo the following year, at the age of eight.

That role would define her legacy. Chase voiced Lilo in the hit Disney animated film “Lilo & Stitch” in 2002 and the follow-up television series. The film, a heartfelt story of a lonely Hawaiian girl and an alien creature she adopts as a pet, became a cultural phenomenon and one of Disney’s most enduring properties. For her voice work, Chase won an Annie Award for outstanding voice acting in an animated feature production.

That same year, Chase delivered what would become one of the most chilling performances in American horror history. In Gore Verbinski’s 2002 horror hit “The Ring,” Chase played Samara Morgan, the lank-haired supernatural antagonist whose image — a small pale girl emerging from a television set — became one of the most iconic visuals in the genre. At just 12 years old, Chase was named Best Villain at the 2003 MTV Movie Awards, beating out Willem Dafoe, Daniel Day-Lewis, and Colin Farrell. Her performance was also featured as archival footage in the 2005 sequel “The Ring Two” and 2017’s “Rings.”

The feat of delivering two such culturally distinct and memorable performances in the same year — one joyful and one terrifying — was a testament to Chase’s range as a young performer.

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Chase also voiced Chihiro Ogino in the American dub of the acclaimed Studio Ghibli film “Spirited Away,” further cementing her status as one of the most recognizable voice actresses of her generation.

Chase also played Samantha Darko, the younger sister of Jake Gyllenhaal’s lead character in “Donnie Darko,” and she starred in the direct-to-video sequel “S. Darko” in 2009.

Beginning in 2006, Chase earned a recurring role in the HBO drama series “Big Love,” which follows a fundamentalist, polygamist Mormon family. She played Rhonda Volmer in 32 episodes of the series during its five-season run.

Her other television credits included “Betsy’s Kindergarten Adventures” on PBS Kids, as well as appearances on “Sabrina the Teenage Witch” and “ER.” Her last acting roles came in 2016.

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In the GoFundMe page, Hernandez also referred to various other difficulties encountered by Chase over the years, including bullying and a falling out with her family. In the years after her acting career wound down, she largely withdrew from public life.

The news of Chase’s death drew an immediate outpouring of grief from fans across social media, many of whom grew up with her performances as both Lilo and Samara as formative cinematic experiences. Letterboxd, the popular film social network, marked her passing with a tribute post.

Chase is being remembered for her performances in “The Ring,” “Lilo & Stitch,” “Big Love,” and “Donnie Darko,” as well as for her voice role in the English dub of “Spirited Away.” She leaves behind a body of work that touched multiple generations of film and television audiences, spanning the full spectrum from animated enchantment to horror iconography — a rare duality that few actors at any age have managed to achieve.

Daveigh Elizabeth Chase was born July 24, 1990. She was 35.

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The one question every investor should answer before buying their very first ETF

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Why this small-cap Russell 2000 ETF is beating all major indexes in 2026

Exchange-traded funds (ETFs) are great investment vehicles for gaining instant exposure to different sectors at prices often lower than those of some of the ETF’s top stock holdings.

For example, Space Exploration Technologies, or SpaceX, closed its first day of trading at just under $161. But the Tema Space Innovators ETF, which holds SpaceX and other space-related investments, is trading below $35 per share.

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That said, with so many different options to choose from, there’s one key question to consider before adding the first ETF into any portfolio.

Traders at the NYSE in lower Manhattan monitoring a volatile trading day.

U.S. stocks hover near record highs, along with metals including silver and gold.  (Michael M. Santiago/Getty Images)

The biggest question to ask yourself

The question to answer before buying an ETF is, “What role is this ETF going to serve in my portfolio?”

5 SIMPLE ETFS TO BUY WITH $500 AND HOLD FOR A LIFETIME

For example, an investor may want to generate more income. With that goal in mind, one investment to consider is the Schwab U.S. Dividend Equity ETF, which tracks U.S. companies with high dividend yields. That ETF pays a dividend that yields above 3%. For investors seeking greater access to theme-based investing with higher price appreciation potential, there are ETFs focused on sectors like artificial intelligence (AI).

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COULD THE VANGUARD S&P 500 ETF BE YOUR TICKET TO BECOMING A STOCK MARKET MILLIONAIRE?

Ticker Security Last Change Change %
SCHD SCHWAB STRATEGIC TR US DIVIDEND EQUITY ETF 31.86 -0.07 -0.22%
VTI VANGUARD TOTAL STOCK MARKET ETF – USD DIS 369.99 +4.23 +1.16%

When it comes to the very first ETF to add to a portfolio, however, the Vanguard Total Stock Market ETF offers a strong starting point. Its investment philosophy is straightforward and has helped investors build long-term wealth.

How the Vanguard Total Market ETF operates

The Vanguard Total Stock Market ETF is designed to track the CRSP U.S. Market index, which represents 100% of the investable U.S. stock market. Its holdings include large-, mid-, and small-cap stocks, with those holdings totaling nearly 3,500. Nvidia is the top holding, with a portfolio weight of 6.6%.

A screen displays the Dow Jones Industrial Average

The question to answer before buying an ETF is, “What role is this ETF going to serve in my portfolio?” (Reuters/Jeenah Moon)

1 UNDER-THE-RADAR ETF TO INVEST $1,000 IN RIGHT NOW THAT’S OUTPERFORMING MAJOR INDEXES THIS YEAR

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It’s a tech-heavy ETF, however, so this may not be a fit for investors who already have heavy exposure to tech stocks. Still, this ETF offers massive diversification, a history of steady returns, and a dividend payout. As of May 31, the Vanguard Total Stock Market ETF is up over 308% over the last 10 years, and its dividend yield is 1%, boosting that total return potential.

Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

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Waymo recalls robotaxi fleet after construction-zone freeway incidents

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Waymo recalls robotaxi fleet after construction-zone freeway incidents

Waymo is recalling nearly 4,000 robotaxis after more than a dozen incidents in which the autonomous vehicles entered closed freeway construction zones, according to a National Highway Traffic Safety Administration (NHTSA) recall report.

The recall affects 3,871 vehicles equipped with Waymo’s 5th Generation Automated Driving System.

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According to NHTSA, the software issue could allow a vehicle to enter a closed freeway construction zone and continue traveling at posted speeds. Regulators said affected vehicles may avoid or fail to recognize certain construction-zone closures because of the software defect.

Waymo estimates that all 3,871 vehicles covered by the recall are affected.

WAYMO PAUSES FREEWAY ROBOTAXI ROUTES AFTER SAFETY AND SOFTWARE CONCERNS

Waymo Jaguar I-PACE autonomous SUV waits at an intersection in San Francisco

A Waymo self-driving Jaguar I-PACE SUV waits at an intersection in San Francisco, March 18, 2025. (Smith Collection/Gado/Getty Images / Getty Images)

According to the recall report, Waymo’s Field Safety Committee began reviewing the issue in late April after examining six incidents in which robotaxis drove past ramp closure signs and entered freeway construction zones.

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The committee met again in May after identifying seven additional instances involving active construction zones in the San Francisco Bay Area.

As a result of the 13 reported incidents, Waymo implemented freeway-driving restrictions while engineers worked to identify the root cause and develop a remedy, according to the filing.

The recall covers Waymo 5th Generation Automated Driving Systems manufactured between May 17, 2022, and May 19, 2026. As of June 13, a software remedy remained under development, according to the filing.

WAYMO RECALLS MASSIVE AUTONOMOUS FLEET AFTER INCIDENT FLAGS MAJOR SAFETY ISSUE

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Waymo legacy minivan

Waymo’s legacy fully autonomous Chrysler Pacifica Hybrid minivan.  (Waymo / Fox News)

Waymo currently operates driverless ride-hailing services in cities including San Francisco, Los Angeles, Phoenix and Austin, and has announced plans to expand into additional markets.

Ticker Security Last Change Change %
GOOG ALPHABET INC. 367.46 +5.36 +1.48%

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A Waymo spokesperson told FOX Business the company voluntarily restricted freeway operations while making improvements, notified regulators and filed a voluntary recall with NHTSA.

“We identified an area of improvement regarding performance around freeway construction zones,” the spokesperson said.

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Rumble's Transformation Is A Risky Bet

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Rumble's Transformation Is A Risky Bet

Rumble's Transformation Is A Risky Bet

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YIT Oyj (YITYY) Discusses Residential CEE Segment Performance and Market Outlook Transcript

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OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript

YIT Oyj (YITYY) Discusses Residential CEE Segment Performance and Market Outlook June 17, 2026 8:00 PM EDT

Company Participants

Essi Nikitin – Vice President of Investor Relations
Markus Pietikainen – Interim CFO, Member of Group Management Team and Senior VP of Treasury and M&A
Heikki Vuorenmaa – CEO, President, Interim EVP of Residential Finland Segment & Member of Group Man. Team

Conference Call Participants

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Atte Jortikka – Inderes Oyj, Research Division
Svante Krokfors – Nordea Markets, Research Division
Anssi Raussi – SEB, Research Division

Presentation

Essi Nikitin
Vice President of Investor Relations

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Okay. I think we can start. So hi, everyone, and welcome to YIT’s analyst call preceding the silent period of our half year 2026 results release.

My name is Essi Nikitin, and I’m heading the Investor Relations at YIT. Together with me today, I have our Interim CFO, Markus Pietikainen; and our CEO, Heikki Vuorenmaa on the line. As usual, we will start with a recap to recent developments in the company presented by Markus. And after that, the participants will have an opportunity to ask questions from Markus and Heikki.

As a reminder, this call will be recorded, and the recording will be published on our website after the call. At this point, I hand over to Markus. Please go ahead.

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Markus Pietikainen
Interim CFO, Member of Group Management Team and Senior VP of Treasury and M&A

Thank you, Essi, and good afternoon, everyone. Let’s proceed with the silent call for the second quarter ’26. First, a short update on our businesses, starting with residential CEE business. As a recap, our residential CEE segment continued to perform well in the first quarter of the year with a steady growth in both revenue and profit, and this segment has become a clear profit driver for the group. The year began with healthy margins, showing the quality of the new projects we launched in 2025.

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Digimarc CEO Riley McCormack-linked entities sell $1.2m in shares

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Digimarc CEO Riley McCormack-linked entities sell $1.2m in shares

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Reeves Warned Over Stealth Tax as 1 Million Pensioners Face Income Tax

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Reeves Warned Over Stealth Tax as 1 Million Pensioners Face Income Tax

Rachel Reeves has been told that ministers cannot “act surprised” when pensioners start asking why retirement now comes with a larger tax bill.

The warning lands as fresh forecasts show an additional one million pensioners will be drawn into the income tax system by 2030-31, with frozen thresholds doing the quiet work that a headline rate rise would do in plain sight.

The Chancellor has faced sustained criticism over the decision to hold income tax thresholds at their current levels until 2031, a policy that opponents have repeatedly branded a “stealth tax” on older people. For a generation of savers who assumed the worst of the tax man was behind them, the effect is the same as a rate increase, just without the politics of announcing one.

Projections from the Office for Budget Responsibility, published alongside the Spring Statement, suggest the threshold freeze will pull an extra one million pensioners into paying income tax over the next four years. The OBR estimates that 600,000 additional state pension recipients will become liable by 2026-27, climbing to one million by 2030-31. It is a textbook case of fiscal drag: the personal allowance stays put at £12,570 while the state pension keeps rising under the triple lock, and the gap between the two slowly closes until it disappears.

The mechanics matter because they are so easily missed. As Business Matters has reported, 420,000 more pensioners were dragged into the income tax net this financial year alone as the freeze bit harder, taking the total well past eight million. The direction of travel is clear, and it is one way.

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The issue reached the Commons on Monday following a public petition that gathered 119,206 signatures before closing on 1 April. It called for a new tax code that would double the £12,570 personal allowance for state pensioners, on the grounds that more retirees are being caught by the tax system precisely because their pension is going up.

During the debate, Conservative MP Alison Griffiths argued that pensioners could see the effect of the policy perfectly well without any help from the Treasury.

“The Government regularly tell people that they have not increased income tax rates,” she told MPs. “However, pensioners, who are a savvy bunch, can see exactly what is happening. They do not need a Treasury briefing to understand where more of their income is being taxed each year.”

She added: “The Chancellor chose to extend the freeze in the personal allowance until 2031. That was a political choice. It means that more pensioners will continue to be drawn into the tax system year after year. Ministers cannot make that decision and then act surprised when pensioners ask questions about fairness.”

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Ms Griffiths reserved particular concern for the uncertainty still hanging over the system. Last year’s Budget promised that pensioners relying solely on the state pension would be spared the hassle of small tax bills through Simple Assessment from 2027, but she said her constituents remain unclear about who qualifies and how the process will actually work.

Liberal Democrat MP Charlie Maynard went further, condemning the freeze as “both wrong and unfair” and accusing the government of running a stealth tax that falls hardest on the lowest paid and most vulnerable. “An estimated 600,000 people were dragged into paying income tax for the first time this April and a further 580,000 were pulled into the higher 40p rate,” he said, describing such measures as “dishonest with voters”. He urged ministers to drop stealth tax policies at a time when cost of living pressures are squeezing households at every stage of life.

Conservative MP John Lamont, meanwhile, challenged the comfortable assumption that pensioners are uniformly well off, telling the House that while it may be true of a small minority, it does not reflect the reality for most.

The Treasury defended its position. “Anyone whose only income is the full new or basic State Pension without any increments will not pay income tax and we are committed to that over this Parliament,” a spokesperson said. The department pointed out that 12 million pensioners would see their income rise by up to £470 this year through the triple lock, while still benefiting from the highest personal allowance in the G7.

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The government has also pledged to ease the administrative burden for pensioners whose sole income is the basic or new state pension, promising they will not face small tax demands through Simple Assessment from 2027-28 should the state pension tip over the personal allowance threshold. Ministers say they are still working out how best to deliver that change and will set out more detail next year.

For now, the awkward arithmetic remains. The triple lock pushes the state pension up, the personal allowance stays frozen, and the space between them narrows each year. As analysis from the Institute for Fiscal Studies and others has shown, freezing thresholds is one of the most lucrative levers a Chancellor can pull, which is precisely why it is so hard to give up. Business Matters has previously examined how this stealth tax raid is reshaping the finances of older households, and the political cost of taxing state pensions despite repeated pledges not to is only growing.

The message from Monday’s debate was blunt. The freeze is a choice, the consequences are predictable, and ministers should not expect retirees to be fooled by the absence of a number on a manifesto.


Jamie Young

Jamie Young

Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.

When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.

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LARRY KUDLOW: Trump and Warsh, in Different Ways, Are Both Promoting Really Good News

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LARRY KUDLOW: Trump has never ruled out military action, which now looks more likely

One of the most telling statements from President Trump at this week’s G-7 meeting was how worried he was about a potential economic catastrophe related to the Iran war and the closing of the Strait of Hormuz. And equally telling, the president referred to the stock market as a key barometer of the economy.

This is very similar to over a year ago when he modified his original liberation day tariff schedules because the stock market tanked badly after his speech. So he made adjustments.

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And I can tell you with my own experience when I worked at the National Economic Council in the first term, however many 100 times I was in the oval, he always asked about the stock market when he saw me coming in. 

It’s an interesting point of view. And it’s a kind of old-fashioned point of view. Because business and financial economists used to use the stock market as a key barometer of the economy.  

Leftists hate this, and unfortunately, today’s Wall Street is heavily populated by leftists, particularly the economists. Not all of them. But most of them.

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So anyway, the president didn’t want to be remembered as Herbert Hoover. And here’s exactly what he did say on Wednesday in France:

“So the one thing I didn’t want to see is I didn’t want to see economic catastrophe. If you kept this going, that could have happened. But all I know is, every time we talked about the possibility of peace, the stock market shot up like a rocket ship. It never went down. They didn’t like it.” 

Mr. Trump added that “the stock market is more brilliant than anybody there is, including the people on this stage other than me, of course. Rather than possibly going into a depression, rather than having your favorite president be Herbert Hoover, who was always the one I didn’t want to be.”

I think that’s very important and very instructive on his thinking. I’m gonna get to the masterful, maiden voyage of the Fed chairman, Kevin Warsh, in just a moment, but I want to add from Mr. Trump’s Truth Social post this morning:

“OIL IS FLOWING, IRAN CAN NEVER HAVE A NUCLEAR WEAPON (THE WORLD WILL BE SAFE), THE STOCK MARKETS ARE ROARING, JOBS ARE AT RECORDS, AND PRICES ARE DROPPING (AFFORDABILITY). OUR COUNTRY IS STRONG, SAFE, AND RESPECTED LIKE NEVER BEFORE.” 

Mr. Trump concluded: “YOU’RE WELCOME.”

So now, Mr. Warsh made clear in yesterday’s presser that strong economic growth and low inflation, meaning stable prices, and low unemployment can all exist together. He basically told us that models developed 50 years or more ago should not be used in today’s ultra-high-tech, faster-than-the-speed-of-light economy. An important policy statement. And an enormous breath of fresh air.

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Meanwhile, reports are coming in that oil is already flowing through the Strait of Hormuz faster than anyone thinks possible.

At $75 and change a barrel, West Texas intermediate oil today is right where it was one year ago, $75. But a year ago, gasoline was $3.18 a gallon. That’s a good forecast for what may happen. Right now it’s $3.99 a gallon nationwide, according to AAA. By the way $3.18 is an awfully good number for the GOP midterm outlook.

Yet Mr. Warsh was very clear that he is leaning toward restoring what he calls price stability. The Fed under its former chairman, Jay Powell, hadn’t hit its 2 percent inflation target in five years. Mr. Warsh wants to correct this.

I think it’s doubtful that he’s gonna start raising the Fed’s target rate, though. Why? Because they’d be looking backward at the lagging story of spiking oil, a story that has obviously completely reversed. Don’t base policy on last year’s story, try to look ahead. This too is a key Warsh theme.

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And by the way, he watches commodities, which in general are falling. Energy, gold, silver, corn, wheat, etc., all falling. And as I noted yesterday, under Mr. Warsh, good news can once again be good news.

His goal is to get markets to react to the actual data news, not what some flyover regional reserve bank president says. That’s why forward guidance is gradually going to go away.

You know what’s really good news? Mr. Trump has decimated Iran’s nuclear and military capabilities. They’re on their knees. And that has allowed him to try and pull together a deal that includes reopening Hormuz.

And that’s going to allow Mr. Warsh the latitude for even more good news, both on falling inflation and rising prosperity. Think of it.

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UK Unemployment Falls to 4.9% as Wage Growth Beats Forecasts

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UK Unemployment Falls to 4.9% as Wage Growth Beats Forecasts

Britain’s unemployment rate edged down to 4.9 per cent in the three months to April, according to figures published by the Office for National Statistics (ONS) on Thursday, handing policymakers a modest piece of good news just hours before the Bank of England delivered its latest call on interest rates.The reading

was down from the five per cent recorded in the previous quarter and came in better than the expectations of economists, who had pencilled in an unchanged jobless rate of five per cent. It is the sort of small upside surprise that rarely shifts the dial on its own, but it lands at a sensitive moment for rate-setters weighing how much slack is building in the labour market.

Pay growth excluding bonuses held steady at 3.4 per cent over the same period, comfortably ahead of forecasts of 3.2 per cent. Adjusted for consumer price inflation, real earnings rose by 0.3 per cent, leaving workers fractionally better off in real terms. Total pay including bonuses climbed 4.4 per cent, also beating the four per cent the market had expected.

The numbers arrived only hours before the Bank of England announced its decision, with the Monetary Policy Committee widely tipped to leave borrowing costs unchanged at 3.75 per cent. The Bank trimmed rates to that level late last year, as covered in our report on how UK interest rates were cut to 3.75% as the Bank signalled inflation nearing target, and has since trodden carefully amid a patchy growth picture. The full detail of the Committee’s thinking is set out on the Bank’s own Bank Rate page.

Rate-setters have been watching the jobs data closely as they judge whether elevated oil prices, linked to the conflict involving Iran, could feed through into stronger wage demands. A tight labour market would raise the risk of a second-round inflation effect, the kind of dynamic the Bank is determined to avoid.

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Responding to the figures, Work and Pensions Secretary Pat McFadden said the data showed 400,000 more people in work than a year earlier, while acknowledging that instability in the Middle East was creating uncertainty. “We have the right economic plan for growth and stability in a volatile world, and we are taking action to create opportunity and make sure that no one is left behind,” he said.

He pointed to what he called the biggest youth employment reforms in a generation, including a Youth Guarantee backed by £2.5 billion of investment aimed at creating almost a million opportunities for young people, and the Connect to Work programme designed to support 300,000 disabled people into employment.

Not everyone read the release as a turning point. Independent economist Julian Jessop cautioned that the underlying trend remained soft. “Even after some favourable revisions, the trend in payroll jobs is still down, with 119,000 fewer employees in May than in the same month a year earlier, and 187,000 fewer than two years ago,” he said.

A further worry for the Committee is whether softer demand for workers is eroding employees’ bargaining power and their ability to push for bigger pay rises. Most members believe labour market conditions have loosened compared with recent years, making large wage increases less likely. The shift is stark set against the period after Russia’s invasion of Ukraine in 2022, when inflation peaked at 11.1 per cent and wage growth ran above five per cent for almost three years.

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Suren Thiru, chief economist at ICAEW, struck a downbeat note. “These figures point to a jobs market struggling under the strain of soaring energy bills and employment costs, with more firms limiting hiring and holding down pay, especially for younger workers,” he said. The cooling he describes echoes the picture in our earlier coverage of how the UK jobs market is slowing as wage growth eases and vacancies fall amid higher business taxes.

Thiru argued that weaker wage growth would reassure policymakers that any inflationary spillover from the conflict involving Iran could be contained. “These figures seal the deal on a midday interest rate hold by reassuring rate-setters that a softening labour market can help keep this Iran-driven inflation shock short-lived by dampening demand across the economy,” he said, adding that the Committee’s vote split and accompanying minutes could take on a slightly more dovish tone.

The claimant count told its own story. The number of people claiming unemployment benefits rose by 31,200 in May, ahead of forecasts for an increase of 25,800 and following a revised rise of 8,300 in April. Employment grew by 100,000 in the three months to April, down from 148,000 in the previous period but still ahead of expectations for growth of 80,000.

Thiru warned that falling vacancies suggested demand for workers was weakening at an uncomfortable pace, as businesses absorbed mounting financial pressures and automation reshaped the workforce. That theme of a stalling hiring engine has been building for some time, as our reporting on long-term unemployment climbing to a decade high made clear.

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“While the US-Iran peace deal has halted hostilities, the damage to the UK’s labour market is already done,” he said, predicting that unemployment could drift towards six per cent if higher energy costs continue to weigh on employers’ hiring plans.

For now, the headline rate is moving in the right direction. The harder question for businesses and policymakers alike is whether that holds once the full weight of higher costs and weaker demand works its way through.


Amy Ingham

Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.

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