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The Senate Confirmation Kevin Warsh has been confirmed by the United States Senate to join the Federal Reserve's Board of Governors ahead of an expected vote that will have US President Donald Trump's appointee lead the central bank. The Senate vote on Tuesday passed 51-45, with a single Democrat, John Fetterman of Pennsylvania, casting his vote with the Republican majority to confirm Warsh for a 14-year term. Warsh's Future Role The next step in the Senate confirmation process would be to confirm him for a four-year term as the central bank's chair. The vote is expected as soon as Wednesday, ahead of the end of current Chair Jerome Powell's term, which ends on Friday. Independence in Question Warsh's confirmation comes with questions about the central bank's independence amid ongoing pressure by Trump to cut interest rates. In the Senate Banking Committee confirmation, Senator Elizabeth Warren accused Warsh, who served on the central bank's Board of Governors in 2006-2011, of being a 'sock puppet' for Trump, an assertion he has denied. Trump said he would only appoint someone to lead the central bank if they agreed with him on interest rates. Warsh's confirmation comes amid efforts by the Trump administration to exert control over the Fed. Changes Ahead Warsh says he plans 'regime change' at the Fed, including tightening its coordination with the Treasury Department and the Trump administration on non-monetary policies and setting it on course for a smaller balance sheet, which he argues should allow for a lower policy rate. A surge in oil prices since the start of the US-Israel war on Iran has pushed up inflation and pared investor expectations for an interest-rate cut this year. Currently, financial markets are pricing about a one-in-three chance of a rate hike by December. The Fed's current target range for short-term borrowing costs is 3.5 percent to 3.75 percent. The Fed's next meeting, likely its first chaired by Warsh, is scheduled for June 16-17.

The Lead United States consumer prices have risen for the second consecutive month, marking the biggest annual increase in almost three years, as energy prices surged on the back of the US-Israel war on Iran. Inflation Rate Increases US consumer prices rose by 0.6 percent in April after a 0.9 percent increase in March, according to the Bureau of Labor Statistics consumer price index (CPI) report published on Tuesday. Prices ticked up by 3.8 percent on an annual basis, which is the largest jump since May 2023. Energy Prices Surge The increase was driven by a surge in energy prices, including prices for petrol or gasoline, which rose by 5.4 percent. On an annual basis, the increase is stark. Energy prices surged by 17.9 percent over the last 12 months, with petrol prices up 28.4 percent compared to this time last year. Economic Impact The average price for a gallon (3.78 litres) of petrol is $4.50, according to the American Automobile Association (AAA), which tracks daily petrol prices. The average price was $2.98 when the US and Israel first struck Iran on February 28. Future Outlook Economists say that conflict with Iran will keep prices high. “Every day the war continues, prices climb higher and will stay there for months after it ends,” Alex Jacquez, a former member of the White House National Economic Council under former US President Joe Biden, said in a statement provided to Al Jazeera.

The LeadeBay has firmly rejected GameStop's $56 billion takeover bid, calling the proposal "neither credible nor attractive" due to financing concerns and doubts about the combined company's growth prospects. The rejection comes as GameStop CEO Ryan Cohen attempts to take the offer directly to shareholders despite significant skepticism from analysts and investors.The Rejection DetailseBay, which has roughly four times GameStop's market value, underscored on Tuesday that its turnaround efforts under CEO Jamie Iannone have boosted growth, with its stock returning 201 percent since Iannone took the position six years ago. "We have concluded that your proposal is neither credible nor attractive," eBay Chairman Paul Pressler said in a statement. "eBay's Board is confident the company, under its current management team, is well-positioned to continue to drive sustainable growth."He also pointed to concerns with GameStop's bid, including its financing, its effect on eBay's long-term growth and the leadership structure of a potentially combined company. GameStop did not immediately respond to a request for comment.Financial Analysis and Market ReactionLast week, GameStop CEO Ryan Cohen surprised Wall Street with his bid, which included a $20 billion debt financing commitment from TD Bank. Analysts and investors have doubted whether the half-cash, half-stock bid for eBay from the $12 billion video game retailer would close.eBay stock has been trading far below the offer price of $125 per share since the bid was made this month. It fell 1.3 percent on Tuesday to $106.68, while GameStop was down nearly 2 percent in early trading. In the last 12 months, eBay's stock has climbed 56 percent while GameStop's has dropped 18 percent.Industry ImplicationsThe proposed deal is drawing attention in a robust mergers and acquisitions market and among retail investors, for whom Cohen has been a hero since he helped rally a short squeeze in 2021 that hurt hedge funds such as Melvin Capital. The offer has upset some GameStop investors; Michael Burry, of The Big Short fame, sold his stake after the offer, warning it would saddle GameStop with debt and dilute share value.Both eBay and GameStop sell collectibles such as trading cards, but their main businesses are different. While eBay earns fees by connecting buyers and sellers online without holding inventory, GameStop buys goods wholesale and resells them through physical stores. Analysts noted that eBay already has an EBITDA margin of 31 percent, three times higher than GameStop's 10 percent.Future OutlookCohen, who has built a 5 percent position in eBay, has signaled he may be ready to take the offer directly to eBay shareholders, possibly by calling a special meeting. That can be difficult as calling a meeting requires a bigger stake. The GameStop CEO said he has a debt financing commitment letter from TD, contingent on the combined company receiving an investment-grade rating. Moody's said last week the deal would be credit negative for eBay. Sources familiar with the matter said eBay thinks it is highly unlikely that a combined company would be considered investment grade.Cohen has argued that by combining GameStop and eBay, he could cut costs and find synergies to create a much bigger enterprise. He said he could boost eBay's profitability by replicating GameStop's cost-cutting drive and use its 600 US stores as a physical network to help turn eBay into a tougher rival to Amazon. In a CNBC interview, Cohen offered little explanation of how GameStop would finance the deal, saying only that it would be paid for with cash and stock.

The Fragile Ceasefire at Risk Islamabad has rejected allegations that it sheltered Iranian military aircraft from potential US strikes as the fragile ceasefire it helped broker between Washington and Tehran appears increasingly at risk. The diplomatic tensions come as US President Donald Trump dismissed Iran's latest peace proposal as "a piece of garbage" that he had not even finished reading, describing the month-old truce as being "on massive life support." Pakistan's Diplomatic Dilemma The Ministry of Foreign Affairs in Pakistan called the CBS News report about Iranian aircraft being moved to Pakistan Air Force Base Nur Khan "misleading and sensationalised," stating the aircraft had arrived as part of diplomatic logistics for talks in Islamabad between US and Iranian officials on April 11. Pakistan emphasized that both Iranian and US aircraft used the base during the ceasefire period, and any significant foreign military presence at the base would be impossible to hide. "The Iranian aircraft currently parked in Pakistan arrived during the ceasefire period and bear no linkage whatsoever to any military contingency or preservation arrangement," the ministry said, adding that Pakistan had "consistently acted as an impartial, constructive and responsible facilitator" throughout the process. Washington's Growing Skepticism Despite Pakistan's denials, concerns in Washington have grown. A CNN report suggested some Trump administration officials believe Pakistan has been sharing "a more positive version of the Iranian position with the US than what reflects reality" while questioning whether Islamabad was "aggressively conveying Trump's displeasure." US Senator Lindsey Graham, a Trump ally, called for "a complete reevaluation" of Pakistan's mediator role. However, analysts suggest the controversy is unlikely to significantly damage Islamabad's position. "Pakistan has done more than many had expected. Delivering a ceasefire in an environment marred by sheer distrust was no mean feat," said Syed Ali Zia Jaffery, deputy director at the Centre for Security, Strategy and Policy Research at the University of Lahore. Deadlock in Peace Negotiations The immediate trigger for the latest tensions was Washington's rejection of an Iranian peace proposal delivered through Pakistan on Sunday. Iranian state media said Tehran's terms included US war reparations, full Iranian sovereignty over the Strait of Hormuz, an end to sanctions, and the release of frozen assets, while insisting nuclear negotiations be deferred. "I would say the ceasefire is on massive life support," Trump said in the Oval Office, describing the situation as one "where the doctor walks in and says, 'Sir, your loved one has approximately a 1 percent chance of living.'" Iranian officials rejected this characterization, calling their proposal "reasonable and generous" and insisting they had demanded "only Iran's legitimate rights." Regional and International Ramifications The core disagreements between Washington and Tehran remain unchanged. The US wants Iran to explicitly abandon its nuclear program and surrender its stockpile of uranium enriched to 60 percent, while Tehran insists nuclear negotiations can only follow the lifting of sanctions and the end of the US naval blockade imposed on its ports. Since the Islamabad talks ended without an agreement on April 12, Pakistan has continued to act as an intermediary, carrying proposals between the two sides. Qatar has also backed the mediation effort, with US Secretary of State Marco Rubio meeting Qatari Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani in Miami, Florida. Path Forward Amid Uncertainty Trump is expected to discuss the Iran crisis with Chinese President Xi Jinping during a visit to Beijing this week, as Washington hopes Beijing could use its influence with Tehran. China is Iran's biggest economic and strategic partner, and Iranian Foreign Minister Abbas Araghchi met Chinese Foreign Minister Wang Yi in Beijing last week. The Iranian foreign minister is also expected to attend a meeting of BRICS foreign ministers in India, alongside top diplomats from Saudi Arabia and Egypt. "For the ceasefire, this is actually stabilising. More parties with skin in the game raise the cost of collapse for everyone," said analyst Mohanad Seloom. Meanwhile, Israeli Prime Minister Benjamin Netanyahu indicated that if Iran's nuclear material could not be removed through negotiations, Israel and the US agreed "we can re-engage them militarily." Former Qatari Prime Minister Sheikh Hamad bin Jassim Al Thani warned that the weaponisation of the Strait of Hormuz was "the most dangerous outcome" of the conflict, suggesting the crisis would outlast any ceasefire.

Front‑line Starvation Revealed by Emaciated SoldiersIn late April, photos of four severely underweight Ukrainian soldiers went viral, highlighting a crisis where troops endured up to 17 days without food deliveries and months without rotation. Anastasia Silchuk, whose husband serves in the 14th Mechanised Brigade, described fighters fainting from hunger and drinking rainwater while holed up on the left bank of the Oskil River in Donetsk.Soldiers such as Oleksandr and Ihor confirmed that the lack of regular meals forced them to subsist on chocolate bars, oatmeal and a single bottle of water per day.Drone‑Driven Logistics: How Ukraine Supplies Isolated BunkersUkraine has turned to autonomous aerial and ground systems to bridge the supply gap. Small robotised carts equipped with video feeds deliver ammunition and food, while heavier bomb‑type drones drop several kilograms of cargo directly onto front‑line outposts.According to drone‑warfare pioneer Andriy Pronin, the new system “works smoothly” for those who receive it, with deliveries arriving “once a day or once every other day.”Numbers Behind the Crisis: Delivery Rates, Ranges, and Weight LossOnly 10 percent of Ukraine’s armed forces receive drone‑dropped food, per researcher Nikolay Mitrokhin.Combat drones can operate up to 25 km (15.5 mi) from either side of the front line.Suicide drones force vehicles to travel at 120 km/h (75 mph) to evade attacks, limiting ground transport options.Russian‑aligned soldier Mohammad reported weight dropping from 76 kg to 60 kg after weeks of scarce rations.Strategic Implications: Isolation, Vulnerability, and MoraleThe shift to aerial supply has turned Ukrainian positions into “isolated, island‑like spots,” making traditional trench networks and supply convoys nearly obsolete. While drones provide a lifeline for a minority, the majority of troops remain vulnerable to starvation, low morale, and increased casualty risk.Russian forces face similar challenges; limited drone deliveries leave soldiers with “two or three very small chocolate bars” and a bottle of water, as recounted by Mohammad. Reports of extreme desperation, including alleged cannibalism, underscore the human cost of logistical breakdowns.Looking Ahead: What the Supply Gap Means for the Conflict’s TrajectoryThe Ukrainian Defence Ministry has launched an investigation, warning that insufficient food must not become systemic. If drone‑based logistics cannot be scaled beyond the current 10 percent coverage, prolonged supply shortages could erode combat effectiveness on both sides and potentially influence negotiation dynamics.Future battlefield planning will likely hinge on expanding reliable aerial resupply, developing counter‑drone defenses, and securing alternative ground routes to prevent the front lines from becoming “starvation zones.”

The US Oil Stockpile Release The United States has announced its latest release of emergency oil stockpiles in coordination with the International Energy Agency (IEA). The US Department of Energy said on Monday that it had begun transferring 53.3 million barrels from the strategic petroleum reserve after awarding contracts to nine companies under its emergency exchange programme. Contract Details Trafigura Trading LLC, a Texas-based commodities trading company, was granted the biggest haul of nearly 13 million barrels, with Marathon Petroleum Corporation and ExxonMobil set to receive 12.4 million barrels and 11.4 million barrels, respectively. Macquarie Commodities Trading US, Atlantic Trading & Marketing, BP Products North America, Energy Transfer Crude Marketing, Mercuria Energy America and Phillips 66 will receive between 1.05 million and 6.55 million barrels each, according to the Energy Department. The Impact on Oil Prices The transfer comes after US President Donald Trump's administration agreed in March to release 172 million barrels of crude as part of the IEA's coordination of the largest unloading of global stockpiles in history. Oil prices have surged since the US and Israel launched their war on Iran in late February, with Tehran's retaliatory blockade of the Strait of Hormuz paralysing one of the world's most important trade routes. The Future Outlook Oil prices continued to edge higher on Monday after Trump dismissed Iran's latest peace proposal and warned that the ceasefire between the sides was "on life support", dampening hopes for a quick resolution to the conflict. Facing growing public discontent over rising fuel prices, Trump on Monday also pledged to waive the 18.4 cents-per-gallon federal tax on petrol, though taxation is the purview of the US Congress. Futures for Brent crude, the international benchmark, were up about 1 percent in Asia on Tuesday morning, topping $105 a barrel.

The LeadBritain's Prime Minister Keir Starmer has pledged to prove his doubters wrong as he fights for his political future in the wake of last week's disastrous local election results and growing speculation that a leadership contest may not be far off.The Event DetailsIn a make-or-break speech on Monday, the leader of the ruling Labour Party said that he remains the man to deliver change and will take responsibility for fulfilling his party's electoral promises. Labour came to power in July 2024 in a landslide victory, following 14 years of Conservative Party rule. Since then, Starmer's popularity has tanked while support for the anti-immigration party, Reform UK, led by Brexit figurehead Nigel Farage, has soared.The Data AnalysisIn local elections last week, Labour lost more than 1,460 council seats in England – most of them won by Reform – in the worst election results suffered by a governing party in more than three decades. While Labour lost nearly 1,500 local council seats, Reform UK surged from fewer than 100 to around 1,450 seats under Farage. The latest Ipsos Political Pulse opinion poll shows half of Britain's electorate believes Starmer should step down, and two-thirds believe he is unlikely to win reelection.The Impact AnalysisDiscontent with Starmer's leadership has been increasing over the past year, with support for Labour evaporating even in several of its traditional strongholds in London, in former so-called "Red Wall" industrial regions in central and northern England, and in Wales, mainly benefiting Farage's populist party. One major issue is what many voters view as Starmer's failure to tackle immigration. There has also been mounting pressure over Labour's appointment of Peter Mandelson as ambassador to the US in December 2024, who was sacked after embarrassing emails between him and Jeffrey Epstein were uncovered.The PredictionTo trigger a leadership contest, more than 20 percent of Labour MPs – 81 of them – must support a new candidate. Among the potential challengers are former deputy prime minister Angela Rayner, Health Secretary Wes Streeting, and Greater Manchester Mayor Andy Burnham. While Rayner and Streeting may be most likely to kick off a leadership contest, neither is universally popular within Labour itself. Burnham ranks high in opinion polls as the public's preferred choice but is currently unable to challenge as he does not have a seat in parliament.

The Lead UK gilt yields have crept higher as Keir Starmer's crucial speech failed to dispel investor "jitters" in the bond markets over political instability combined with fears of rising inflation. Starmer's Speech and Market Reaction The yield, effectively the interest rate, on the benchmark 10-year UK government bonds (known as gilts) rose eight basis points (or 0.08 of a percentage point) to 5% on Monday. The yield on 30-year gilts rose 9.3 basis points to 5.67%, edging closer to the 28-year high of 5.78% last week when uncertainty about Starmer's future as prime minister was intensifying. Economic Impact of Rising Yields Borrowing costs fell on Friday as the results of the elections emerged with signs that Labour had not suffered as badly as first feared. Those falls, however, were more than erased by Monday's rises. Susannah Streeter, the chief investment strategist at Wealth Club, a non-advisory investment service, said the speech had not "done the trick of calming bond markets". Investor Concerns and Future Outlook There is still a sense of jitters playing out as concerns about political instability collide with inflationary fears prompted by the ongoing conflict in the Middle East. Bond yields move in the opposite direction to bond prices because investors want to pay less and get a bigger reward for the risk of holding them. Higher yields increase the cost of borrowing for the government and eat away at the headroom that the chancellor, Rachel Reeves, has built up against her fiscal rules.

The Looming Food Benefit Cuts With food benefit cuts looming in the US, single mother Greer Dove is among those who will be severely impacted. She relies on the federal government's Supplemental Nutritional Assistance Program (SNAP) and a local food bank in California's Marin County to feed her eight-year-old daughter with special needs. The Impact of the OBBBA Cuts President Donald Trump's One Big Beautiful Bill Act (OBBBA), passed in June, cut SNAP benefits by over $186bn over the next 10 years. This could lead to more than 3 million people nationwide, and 665,000 recipients in California, losing food benefits. The Proposed Billionaire Tax California's proposed billionaire tax seeks to impose a one-time 5 percent tax on the assets of the state's more than 200 billionaires to make up for the funding gap created by the OBBBA. The tax is expected to raise $100bn, with 10 percent going towards making up for the retrenchment in food benefits. The Data Analysis Over 5.3 million people in California receive food benefits, the most of any state. 72,000 immigrants in California lost benefits in April. Nearly 600,000 recipients will be screened for work eligibility starting June. SNAP rolls have shrunk by 3.3 million nationally in the six months from July 2025 to January 2026. The Impact Analysis The cuts have already led to a 51 percent drop in SNAP rolls in Arizona, which has begun implementing the OBBBA cuts. In California, the rolls of Calfresh shrank by 288,000 or 6 percent from July 2025 to February 2026. The Prediction The billionaire tax faces opposition from tech entrepreneurs, who argue it will lead to a flight of capital and innovation from the state. However, experts say there is little academic evidence that such taxes cause the wealthy to leave at a notable scale.