WS #6575
The dominant theme in this window is the escalating Iran-UAE conflict, with multiple sources reporting fresh Iranian missile and drone attacks on the UAE, including Dubai, on May 5. This marks a significant escalation after a fragile ceasefire, directly threatening the Strait of Hormuz and global oil supplies. The Pentagon's statement that the ceasefire 'is not over' provides a counter-signal, but the attacks themselves are a clear escalation. UK long-term borrowing costs hit a 28-year high, driven by the Iran war and political uncertainty, which is a major macro signal for bond markets. The SEC's proposal to allow semi-annual earnings reports is a structural shift for US equities. On the corporate side, SanDisk surged 10% on $42B in AI deals, and Intel jumped 14% on Apple chip talks, while PayPal plans to cut 20% of its workforce. The US-Iran ceasefire narrative is now clearly under strain, with the UAE attacks being the most significant new data point.
Key developments
- Iran launches new missile and drone attacks on UAE, including Dubai, on May 5
- UK 30-year bond yields hit 28-year high as Iran war and political uncertainty weigh
- SEC proposes allowing public companies to report earnings semi-annually instead of quarterly
- SanDisk surges 10% to record highs after locking in $42 billion in AI supply deals
- Intel jumps 14% on reports of Apple chip manufacturing talks to reduce TSMC dependence
- PayPal plans to cut 20% of workforce as CEO seeks to revamp company
- Chevron CEO warns oil supply shortages will hit globally unless Strait of Hormuz opens fully
- US government to vet pre-release AI models from Google, Microsoft, and xAI