MARKET HIGHS COLLIDE WITH GEOPOLITICAL HEAT

US equities pulled back on Friday after a hot inflation print and rising anxiety over AI disruptions.

European markets are on an absolute tear with the Stoxx 600 hitting new highs. It just logged its eighth consecutive month of gains for the best streak we have seen since 2013.

Domestic bonds enjoyed their strongest rally in a year. Short-term yields have dropped to levels we have not seen since 2022.

The British pound just slipped to a two-month low against the Euro.

This week's lineup:

See the full calendar here.

Crisis? Yes. (Polymarket)

The United States managed to neutralize Iranian threats well ahead of expectations (CNBC).

Market participants are actively preparing for broader economic fallout from the overseas war (RT).

Massive infrastructure spending on artificial intelligence is driving the strongest emerging market profits we have seen in twenty years (BBG).

The rise of machine learning is completely rewriting the rulebook for Wall Street's quantitative trading desks (BBG).

Analysts at JPMorgan are sounding the alarm that up to $150 billion worth of collateralized loan obligations are facing serious risks (BBG).

Goldman Sachs is somehow avoiding the wave of private credit redemptions despite growing industry concerns about technological disruption (RT).

The Department of Defense has formed a new partnership with OpenAI following its recent split with Anthropic (BBG).

Nvidia is already laying the groundwork to release another highly anticipated semiconductor (WSJ).

Former President Bill Clinton testified to Congress that he had no knowledge of Jeffrey Epstein's criminal activities (BBG).

Paramount Skydance is officially scooping up Warner for a staggering $112 billion. They also handed over a $2.8 billion breakup fee to Netflix after the streaming giant bowed out of the bidding war.

Zurich Insurance Group is close to finalizing a $10.8 billion takeover of the British specialty insurance provider Beazley.

The Canadian financial group Fairfax has emerged as the leading candidate to purchase a controlling stake in the $8 billion Indian state-operated IDBI Bank.

Advent is exploring a potential take-private deal for the $1.7 billion British engineering company Senior.

OpenAI just pulled in a massive $110 billion funding round. This cash injection from Amazon, Softbank, and Nvidia places their pre-money valuation at a mind-boggling $730 billion.

The financial technology firm Plaid executed a secondary share sale that values the business at $8 billion.

SpaceX is reportedly preparing to file confidentially for an initial public offering as early as March. That listing could be valued in the neighborhood of $50 billion.

PayPay is backed by SoftBank and is targeting a US public listing that could reach a $14 billion valuation. Visa along with sovereign wealth funds QIA and ADIA are stepping up as cornerstone investors to the tune of $200 million.

The $3 billion publicly traded entity Trump Media is exploring a spinoff of Truth Social. They would separate the social media platform into its own business through a merger with the special purpose acquisition company Texas Ventures Acquisition III.

Paramount Skydance needs to fund its colossal $112 billion buyout of Warner Bros. Discovery. They are doing it by issuing $57.5 billion in both investment grade and high-yield debt. A bridge loan is being supplied by Bank of America, Citigroup, and Apollo.

Lawmakers in Minnesota are actively considering a complete ban on cryptocurrency ATMs across the state.

The primary gambling watchdog in the UK is looking into allowing digital asset payments for online betting platforms.

Following a series of digital asset plays, Trump Media is now exploring the idea of spinning off Truth Social into its own separate entity.

The team behind the stablecoin Tether just froze $4.2 billion worth of digital assets due to alleged connections to criminal activity.