WS #7098

The UK political crisis remains the dominant signal, with the narrative now shifting from Starmer's refusal to resign to active cabinet support. Multiple ministers (McFadden, Kendall, Kyle, Reed) publicly backed the PM after the cabinet meeting, countering earlier reports of six ministers urging him to quit. This suggests the immediate threat of a leadership challenge is stabilizing, though the situation remains fragile. Separately, the Iran-US ceasefire is deteriorating: Trump rejected Iran's latest proposal and is considering new military strikes, while the IRGC issued nuclear threats and Strait of Hormuz traffic remains at a standstill. Oil (USO) rose 3% on the escalation. The Kremlin signaled the Ukraine war is 'coming to an end' and welcomed US mediation, a potential de-escalation signal. In corporate news, JD.com reported Q1 results with revenue up 4.9% but net income halved, a mixed signal. Bristol Myers Squibb announced a $15.2B drug development deal with Hengrui Pharma, positive for BMY. EU plans to crack down on TikTok and Instagram's 'addictive design' targeting kids, a regulatory headwind for META. Goldman Sachs initiated coverage on AEVEX with a Buy rating and $34 target.