๐ฆ Three Inches Higher
Youโre still looking up, just now itโs at your phone.
Also available:๐ซ๐ท รdition franรงaise
Good morning!
The architecture of a British high street bank branch was designed, consciously or not, as a monument to asymmetric power. Marble columns. A teller window set three inches too high. A queue. The whole arrangement communicating, without words, that the customer was the supplicant and they were doing him a favour by holding his salary. This worked beautifully for about two centuries. Then a Lithuanian startup with a neon card and an app that loads in four seconds decided to charge ยฃ2.7B in subscription fees in a single year – a 50% jump – comfortably outpacing what any single legacy institution managed to extract from its customers through more legitimate means.
Illegitimate means, for the record, is not a metaphor. Between 2014 and 2018, Britain’s biggest banks disgorged ยฃ1.6B in compensation for the particular talent they showed in bundling services into accounts customers had neither requested nor noticed. Barclays, NatWest, Lloyds and HSBC were the undisputed champions of the involuntary subscription long before fintech made it fashionable. The difference – and it is the only difference that matters – is that customers were furious about it. They knew how to extract money. They simply forgot to make it feel like a choice.
Revolut understood something that no amount of McKinsey consulting appears to have communicated to the Barclays board: the subscription economy runs on the illusion of agency. The premium tier comes with travel insurance the holder will never claim, lounge access used once at Manchester Airport, and an Uber upgrade that arrives when they’ve already taken the bus. Monzo has 1.6M paying subscribers on the same logic. The British consumer who in 2015 would sooner close their account than pay a monthly fee now hands over ยฃ9.99 without blinking because the card is a pleasing shade of coral and there’s a Tinder logo somewhere in the benefits PDF. This is not banking. This is what happens when a SaaS company decides current accounts are an underserved vertical.
NatWest’s answer has been to acquire Evelyn Partners, a wealth manager, doubling down on charging older, richer people to protect money they already have. Coherent. Also the strategic equivalent of a department store adding a fourth floor of men’s suits while ground-floor queues form for a trainer drop. Charging someone for safeguarding inherited wealth is a craft perfected over centuries. Convincing someone slightly overdrawn that they deserve a premium lifestyle is newer, stranger, and apparently far more lucrative. The gap between those two skills is widening fast, and catching up will cost considerably more than a ยฃ1.6B compensation bill.
๐๏ธ Top Story
- ๐ฌ๐ง Summit Like It Hot. UK Prime Minister Keir Starmer will host Zelenskyy, Macron, and Merz in London to coordinate Ukraine support after renewed Russian aggression. (The Guardian)
- ๐ซ๐ท Shelf Employed. Facing shrinking profits and more closures than openings, French bookstores now sell stationery, board games, and coffee to stay afloat. (Le Figaro)
- ๐ฉ๐ช Far Right of Way. For the first time since World War II, a neo-Nazi party member is a mayoral finalist in a German town, rattling the national consensus. (New York Times)
- ๐ช๐บ Lost in Space. Scientists say Russian satellites have been jamming GPS signals across Europe for years, causing outages and leaving officials scrambling for answers. (New York Times)
- ๐บ๐ฆ Core Values. Russia hit a nuclear waste storage facility near Chernobyl with a drone, damaging the building and drawing condemnation from Ukraine and the IAEA. (Spiegel)
- ๐ฆ๐ฒ Bear Market. Armenia moves closer to the EU and US, prompting Moscow to retaliate with economic penalties and Putin to issue thinly veiled threats about Ukraine-style consequences. (Washington Post)
- ๐บ๐ธ Exit Strategy. Sriram Krishnan, who helped shape AI policy at the White House, has announced he will leave his post by Juneโs end. (Boursier)
- ๐บ๐ธ Press Eject. Donald Trump walked out of an NBC interview after being pressed on his unfounded election fraud claims and the controversial DOJ ยซย weaponizationย ยป fund, leaving questions unanswered and microphones trampled. (Cnbc)
- ๐บ๐ธ Spy High. The Pentagon has raised its counterintelligence alert on Israel to the highest level after reports of Israeli attempts to eavesdrop on top officials about Middle East policy. (Libรฉ)
- ๐บ๐ธ Festival of Arms. A shooting near Toledoโs Old West End Festival left 12 injured, most around 20 years old, as police search for multiple suspects. (Libรฉ)
- ๐ง๐ด Block Force. Bolivia’s parliament has approved a law letting President Rodrigo Paz Pereira deploy the army to clear month-long protest roadblocks, escalating the standoff with striking workers demanding his resignation. (Le Monde)
- ๐ฐ๐ท Han Solo. Han Seongsook is set to become South Korea’s first female prime minister in two decades if parliament signs off, breaking a long male streak. (Cnbc)
- ๐ต๐ญ Ground Rules. A magnitude 8.2 earthquake struck Mindanao in the Philippines, triggering a tsunami warning and reminding everyone who really sets the agenda. (Boursier)
๐ฌ๐ง United Kingdom
- ๐ฌ๐ง Labour of Love. Keir Starmer tells supporters he will stand and fight any Labour leadership contest, refusing to step aside amid mounting pressure from rivals. (BBC)
๐บ๐ธ United States
- ๐บ๐ธ Hostile Check-In. Texas billionaires Robert and Blake Rowling are trying to wrest control of West Virginia’s iconic Greenbrier resort from Senator Jim Justice, promising a new era of luxury management. (Wall Street Journal)
- ๐บ๐ธ Selective Service. Kennedy Jr. prioritizes his anti-vaccine agenda at Health and Human Services, ignoring emergencies like Ebola and keeping his circle tight and loyal. (New York Times)
๐๏ธ Economy
- ๐ช๐ธ Full House. Spainโs foreign tourist arrivals break records as Middle East turmoil diverts vacationers, but the welcome mat is wearing thin for many residents. (BBC)
- ๐ช๐บ Margin Call. Industrialized nations face shrinking fiscal room as borrowing costs hit highs not seen in decades, with Franceโs latest bond sale clocking a 3.8% rate. (Le Monde)
- ๐ช๐บ Tariff Drift. European and British automakers want the to delay post-Brexit EV import tariffs for a second time, admitting they are not ready for the rules. (The Guardian)
- ๐ณ๐ด Strike Out. Norwegian oil firms and unions clinch a last-minute pay agreement, narrowly avoiding a strike that could have rattled global energy markets. (Boursier)
- ๐ท๐บ Smoke and Mirrors. Ukraineโs drone strikes on St Petersburg upstage Putinโs economic forum as thick black smoke greets delegates and the Kremlin insists all is stable. (BBC)
- ๐ท๐บ Crude Intentions. Russia’s Igor Sechin accuses the US of using the Strait of Hormuz crisis to tilt the oil market in favor of its own producers. (Cnbc)
- ๐บ๐ธ Deal Team Six. The Pentagon is hiring 30 Wall Street bankers at up to $600K each to invest $200B in strategic sectors, because supremacy is now a portfolio strategy. (Le Figaro)
- ๐บ๐ธ Show Business Class. With production costs soaring, Broadway producers eye Londonโs tax breaks and cheaper stages, leaving New York to sing for its supper. (Bloomberg)
- ๐จ๐ณ Great Wall Street. China unveils new rules to screen outbound investments by its own companies, building barriers to keep money and technology from escaping as global tensions rise. (New York Times)
- ๐ธ๐ฆ Barrel Scrape. OPEC+ announces a modest quota hike for July, offering the market a symbolic gesture instead of any real supply boost. (Bloomberg)
- ๐ฆ๐ช Suite Deal. Dubaiโs luxury hotels slash prices by up to 75% to lure local residents as international tourists vanish amid Middle East conflict, making five-star stays suddenly affordable. (Le Figaro)
๐ฌ๐ง United Kingdom
- ๐ฌ๐ง Tax and the City. Santander chief Ana Botรญn blasts the UKโs special bank taxes as irrational, warning that singling out lenders for extra levies only stifles growth. (Financial Times)
- ๐ฌ๐ง Credibility Gap. UK MPs slam the government for repeated delays to its defence investment plan, warning that stalled spending has undermined Britainโs standing with allies. (The Guardian)
๐บ๐ธ United States
- ๐บ๐ธ Rate Expectations. Kevin Warsh barely settles in as Fed chair before a strong jobs report sparks calls for rate hikes and an early policy showdown. (Wall Street Journal)
- ๐บ๐ธ Working on It. May brought 172,000 new jobs to the economy, yet the unemployment rate stubbornly stayed at 4.3% without blinking. (Wall Street Journal)
๐ข Real Estate
- ๐จ๐ญ Summit Exclusion. As Swiss Alps real estate prices hit new heights, locals watch from below while wealthy buyers snap up second homes without hesitation. (Le Temps)
- ๐ฆ๐ท Palantir in Palermo. Peter Thiel considers relocating to a luxury Buenos Aires villa, finding a warm reception from President Milei and plenty of space to plot his next move. (Spiegel)
๐ฌ๐ง United Kingdom
- ๐ฌ๐ง Steel Yourself. The UKโs new steel tariffs and import quotas, set for July, will delay housebuilding and infrastructure projects, with industry leaders warning of shortages and rising costs. (Financial Times)
- ๐ฌ๐ง House Arrest. New research from Shelter reveals that Englandโs social housing waitlist would take 119 years to clear at the current building pace, leaving 1.3M households in limbo. (The Guardian)
๐บ๐ธ United States
- ๐บ๐ธ No Tuition, No Mortgage. The former Green Mountain College campus in Vermont is up for grabs at no cost, making higher education look cheap by comparison. (Wall Street Journal)
- ๐บ๐ธ Lone Star Check-In. Dallas hoteliers Robert and Blake Rowling want to oust Senator Jim Justice as owner of the Greenbrier, aiming to remake โAmericaโs Resortโ in their image. (Wall Street Journal)
๐ On-chain
- ๐ฌ๐ง Coin Operated. Reform UK rakes in ยฃ9.3M in Q1, mostly from crypto billionaires like Ben Delo and Christopher Harborne, outpacing both Labour and the Tories as the party becomes a magnet for offshore digital wealth. (Les Echos)
- ๐จ๐ญ Coin Footprint. Swiss academics show Bitcoinโs energy-hungry mining pumps out massive emissions, while Ethereumโs new approach keeps its carbon almost invisible. (Swissinfo)
- ๐บ๐ธ Block and Old. Bitcoinโs original promises of revolution and easy riches are looking tired as the cryptocurrency faces questions about relevance and staying power. (Bloomberg)
- ๐บ๐ธ Buyback to the Future. While bitcoin crashes, Bitwise ๐บ๐ธ, 21shares ๐จ๐ญ, and Grayscale ๐บ๐ธ rake in $150M for hyperliquid ETFs, luring investors with a model that recycles fees into token buybacks. (Cnbc)
- ๐บ๐ธ Token Gesture. JP Morgan, Citi, Bank of America, and Wells Fargo will launch a tokenised deposit network in 2027, hoping to out-crypto the crypto firms muscling in on their turf. (FinExtra)
๐ฑ Listed Markets
- ๐ฌ๐ง Board Games. BP veteran Carol Howle offloaded ยฃ2M in shares a week before chair Albert Manifoldโs abrupt exit, leaving the companyโs leadership shuffle in the spotlight once again. (Financial Times)
- ๐ฌ๐ง Berry Bull Run. Raspberry Pi’s ๐ฌ๐ง shares soared 19.5% after the company posted a strong earnings outlook, tripling their value since the start of the year. (Wall Street Journal)
- ๐บ๐ธ Chip Happens. Marvell Technology and Flex are set to enter the S&P 500, replacing Pool Corp and Campbell’s, as AI infrastructure powers the latest reshuffle. (Cnbc)
- ๐บ๐ธ Board Out. LinkedIn co-founder Reid Hoffman will step down from Microsoft’s board after nearly a decade, shifting his focus to his new AI startup Manas. (Cnbc)
- ๐บ๐ธ Cloud Nine Figures. Google ๐บ๐ธ will pay SpaceX ๐บ๐ธ $920M per month for access to 110,000 NVIDIA GPUs, boosting its AI muscle just as SpaceX preps its record IPO. (TechCrunch)
- ๐บ๐ธ Level Up. Paramount and Skydance are launching a new videogame studio, with Tony Driscoll leading both the gaming push and the Warner Bros. integration. Corporate synergy just got a new boss level. (Wall Street Journal)
- ๐ญ๐ฐ IPO-llusion. Hong Kong tops the global IPO charts by funds raised, but its new listings are flopping after launch, with half trading lower in three months. (Cnbc)
๐ฌ๐ง United Kingdom
- ๐ฌ๐ง Locked In. A cross-party committee calls out the UKโs reliance on Palantir for NHS and defense data, citing security risks and a โmismatch with UK values.โ (Financial Times)
๐๏ธ Big Deals (M&A)
- Frasers ๐ฌ๐ง weighs ยฃ500M bid for shopping center ๐ฌ๐ง.
- Hg ๐ฌ๐ง and General Atlantic ๐บ๐ธ explore a $6B sale of Gen II ๐บ๐ธ, a New York-based fund administrator managing $1.5T and servicing 14,000 fund entities. Also backed by Cobepa ๐ง๐ช and previously invested in by IHS Markit ๐บ๐ธ.
- Rรฉmy Cointreau ๐ซ๐ท explores options for its drinks portfolio.
- Bouygues Telecom, Free – Groupe iliad & Orange ๐ซ๐ท acquires SFR ๐ซ๐ท for an enterprise value of โฌ20.35B, with a potential earn-out up to โฌ0.65B and break-up fees ranging โฌ0.1Bโโฌ2B.
- Banco BPM ๐ฎ๐น proposes a deal to acquire Monte Paschi ๐ฎ๐น for โฌ50B, banking sector.
- Ballyโs Intralot ๐ฌ๐ท acquires Evoke ๐ฌ๐ง for ยฃ243M in an all-share offer. Evoke is owner of William Hill and 888, deal subject to regulatory approval and expected to complete late 2026โearly 2027.
- Mercuria Energy ๐จ๐ญ acquires Raizen ๐ง๐ท’s Argentine refinery and network of gas stations for $1.42B after a bidding war with Vitol
- Nestlรฉ ๐จ๐ญ acquires full control of yfood Labs ๐ฉ๐ช. Nestlรฉ held a 49% stake since 2023, yfood generated โฌ150M revenue last year and founders’ shares transfer on July 3.
- Apollo ๐บ๐ธ doesn’t plan to make a firm $2B takeover offer for Bodycote ๐ฌ๐ง. Shares fall 9.4% to 746p, up 6.6% year to date.
- KKR ๐บ๐ธ, Blackstone ๐บ๐ธ and Goldman Sachs ๐บ๐ธ are among fifteen bidders to acquire Sankei Building ๐ฏ๐ต for $3B-$6.3B.
- Castlelake ๐บ๐ธ taps MSC ๐จ๐ญ to support a potential $4.8B takeover bid for easyJet ๐ฌ๐ง.
- LS Power ๐บ๐ธ is in advanced talks to buy รlectricitรฉ de France’s North American renewable power business ๐ซ๐ท for $4.7B+.
- Glazer family ๐บ๐ธ considers selling their stake in Manchester United ๐ฌ๐ง, $4B-listed.
- Ares ๐บ๐ธ-backed medical spa chain LaserAway ๐บ๐ธ is exploring a $2B sale.
- Peloton ๐บ๐ธ acquires Skลp ๐บ๐ธ, a Pilates-focused startup.
- Carlyle ๐บ๐ธ acquires a home appliance rental firm ๐ฐ๐ท for $700M.
- Incyte ๐บ๐ธ acquires Star Therapeutics ๐บ๐ธ for up to $2B ($1.25B upfront plus $750M in milestones. Blood-disorder biotech developing VGA039 for von Willebrand disease, in late-stage trials with FDA fast-track).
- Western Asset Management ๐บ๐ธ settles with U.S. Securities and Exchange Commission ๐บ๐ธ for $100M over an investigation into trading allocations by former co-CIO Ken Leech. DOJ has declined further action.
- Equatorial Energia ๐ง๐ท submits the sole bid for Copasa ๐ง๐ท, offering $1.6B for a 30% stake.
- Sinoma ๐จ๐ณ, Huaxin Building Materials ๐จ๐ณ, Italcementi ๐ฎ๐น and Votorantim ๐ง๐ท are bidding for CSN’s cement unit ๐ง๐ท for $2B.
- PayPay ๐ฏ๐ต (SoftBank’s payments unit) acquires T&D Financial Life Insurance ๐ฏ๐ต for $840M, the life-insurance unit of T&D Holdings.
- MMC Port Holdings ๐ฒ๐พ approaches prospective bidders for a minority stake at a potential $10B valuation.
- Airwallex ๐ฆ๐บ acquires Leapfin ๐บ๐ธ, a financial data automation platform specialising in revenue recognition and reconciliation.
๐งณ Private Markets & VC
- ๐ฌ๐ง Factory Settings. PhysicsX, a London-based startup, lands a $2.4B valuation as it aims to automate manufacturing with its AI-powered solutions. (Bloomberg)
- ๐ซ๐ท Auto-Pilot. KNDS is taking a page from the automotive playbook, using assembly-line methods to accelerate its output of armored vehicles for France and Belgium. (Le Monde)
- ๐บ๐ธ Ctrl-Alt-Delete. Software buyout deals in the have crashed to $50B for early 2026, their lowest since the pandemic, as AI uncertainty freezes private equity activity. (Financial Times)
- ๐บ๐ธ Growth Spurt. Supabaseโs valuation soared from $5B to $10B in eight months, thanks to a $500M raise and surging AI-powered developer adoption. (TechCrunch)
- ๐บ๐ธ Chat Is Dead. OpenAI will revamp ChatGPT into a multifunctional platform focused on coding and AI agents, chasing business growth and investor attention before its public listing. (Financial Times)
- ๐บ๐ธ Buyerโs Remorse. The AI boom has triggered a flood of mega stock deals from tech firms, raising fears that investor appetite cannot keep up with supply. (Bloomberg)
Fundraising
- Flourish (Neuroscience): $500M (Jeff Bezos, others)
- Supabase ๐บ๐ธ (Infrastructure): $500M (GIC, Accel, Y Combinator, Craft, Felicis, Peak XV, Coatue, Stripe, Salesforce Ventures)
- Helion Energy ๐บ๐ธ (Fusion): $465M
- Generalist AI (Robotics): $400M
- Allen Control Systems ๐บ๐ธ (Robotics): $200M (Smash Capital, Craft Ventures, Rally Ventures, Inspired Capital)
- Innovafeed ๐ซ๐ท (Agtech): โฌ51M (Creadev, Temasek, ADM, QIA)
- InCharge Energy ๐บ๐ธ (Energy): $46M (S2G Investments, QIC)
- Thena Capital ๐ฌ๐ง (Healthcare): ยฃ45M
- Honeycomb ๐บ๐ธ (Insurtech): $40M
- Opal Security ๐บ๐ธ (Cybersecurity): $23M (Greylock, Battery Ventures, Cambium Capital)
- Scotch ๐บ๐ธ (Retail POS): $20M
- Red Metals ๐บ๐ธ (Metals): $10M (Gigascale Capital, Future Ventures, MCJ, JB Straubel)
- Finovox ๐ซ๐ท (Cybersecurity): โฌ8.2M (TX Ventures, Auriga Cyber Ventures II, MTech Capital, Start Ventures, Force Over Mass, FDJ UNITED Ventures, Blast Club, Groupe IMA)
- Scispot (Lab software): $8M
- Offroad (Identity security): $7M (Ibex Investors, Skywell Capital Partners)
- Willow ๐ฎ๐ฑ (AI governance): $7M (Hetz Ventures, Avishai Abrahami, Nir Zohar)
- Kodesage (AI): $6.6M
- Rรฉempro ๐ซ๐ท (Construction): โฌ1.6M (several banking partners, Finorpa Gestion, Makesense Seed II)
- Rapidus Corporation ๐ฏ๐ต (Semiconductors): ยฅ150B (Information-Technology Promotion Agency (IPA))
Fund Watch
- Benchmark ๐บ๐ธ: $750M (12th flagship early-stage fund) + $1.25B (1st growth fund)
- Tishman Speyer ๐บ๐ธ: $300M (first closing of Korea Living Venture. Korea multifamily living platform. APG & Bouwinvest commitments, $400M equity target)
๐IPO
- INNIO ๐ฉ๐ช (Power): raised $2.4B in its US IPO for a $25.5B valuation and jumped 23% on debut.
- Nyxoah ๐ง๐ช (Medtech): pricing a US subscribed offering to raise about $95M by selling 55,232,558 shares at $1.72 each.
- Databricks ๐บ๐ธ (AI): will not IPO this year and is valued at $134B.
- Parabilis Medicines ๐บ๐ธ (Biotech): seeking to raise $475M in an IPO at a $2.1B valuation.
- Liftoff Mobile ๐บ๐ธ (Adtech): raised $437M in a IPO at a $4.75B valuation and jumped 24% on its trading debut after pricing above the marketed range.
- Sunshine Silver Mining & Refining ๐บ๐ธ (Mining): rose 27% in its trading debut after raising $270M at a $2.4B valuation in an upsized IPO.
- LongBio Pharma ๐จ๐ณ (Biopharma): listed in Hong Kong with a market capitalization of HK$10.7B.
- SK Hynix ๐ฐ๐ท (Semiconductors): received positive feedback for its proposed $14B US listing.
๐งณ Debt
- McKesson ๐บ๐ธ: sold a $2.25B leveraged loan ahead of its $13B spinoff.
- Pathway Power ๐บ๐ธ: finalized $150M senior-secured facility from AB CarVal to fund late-stage development of hybrid and battery-storage projects.
- Hut 8 ๐จ๐ฆ: seeking $4.25B in private debt to finance an AI data center campus in Texas.
- Nigeria ๐ณ๐ฌ: plans to refinance high-cost debt and raise funds to plug a $22B budget deficit.
- Africa Finance Corp ๐ณ๐ฌ: raised a $2B syndicated loan.
โ Failures
- Thames Water ๐ฌ๐ง: Andy Burnham said nationalisation of the water company would ยซย absolutely be an optionย ยป under his leadership.
- Poundstretcher ๐ฌ๐ง: the Fortress-backed discount retailer is facing legal challenges from two landlords over its plan to cut store rents as part of a restructuring.
- Reno de Medici ๐ฎ๐น: will hand control to creditors holding $700M of bonds in a debt restructuring.
- Swiss Post ๐จ๐ญ: to cut around 60 full-time IT positions in Switzerland, with about 20 contract changes also planned.
- Nassau County Tobacco Settlement Corporation ๐บ๐ธ: defaulted for the first time after failing to make a principal payment on a $430M bond.
- Sleep Number ๐บ๐ธ: mattress maker preparing to file for Chapter 11 bankruptcy.
- Raizen ๐ง๐ท: reached a $13B out-of-court deal with creditors.
๐ฏ For a Few More Minutesโฆ
- ๐จ๐ญ Silent Partner. A long-lost 1900 silent film by British director Robert W. Paul has resurfaced in the Swiss national archives, delighting film historians with a one-of-a-kind cinematic treasure. (Swissinfo)
- ๐บ๐ธ Prime Time. June Squibb, Broadwayโs legendary late bloomer, lands her first Tony nomination at 96 for her role in ยซย Marjorie Primeย ยป and shows no signs of slowing down. (New York Times)
๐ฌ๐ง United Kingdom
- ๐ฌ๐ง Snow Fall. Former Channel 4 News anchor Jon Snow has revealed he has been diagnosed with Alzheimerโs, discussing his condition in an upcoming documentary. (The Guardian)