Mortgage Rates Rise Above 7%

The episode opens with President Trump welcoming Chinese leader Xi Jinping to the White House with an elaborate ceremony, including a red carpet, military flyover, and joint remarks indicating a desire to find peaceful cooperation despite tensions. Trump highlighted issues like national security, technology, and AI, emphasizing that their decisions could promote peace for decades. Robbie Gramer, WSJ national security reporter, comments on the tone of the talks, noting a 'warm surface-level bromance' that masks underlying issues. Gramer explains Xi's mention of the Thucydides trap, suggesting that China and the U.S. are aware of the risk of confrontation but also recognize the possibility of avoiding it through diplomacy. The discussion touches on China's alleged nuclear testing and the US's efforts to increase transparency in China's nuclear program, which China denies. The meeting is seen as a balancing act—leaders trying to appear friendly while dealing with serious security concerns.

Israeli Prime Minister Benjamin Netanyahu delivered a defiant speech at the UN General Assembly, criticizing the absence of many delegates who walked out in protest, and calling Israel's actions in Gaza a defense against aggression. Netanyahu defended Israel's military tactics against accusations of genocide and emphasized his commitment to defend Israel as Israelis prepare to vote on his leadership. The episode notes Netanyahu's declining worldwide support and the missed opportunity for a meeting with President Trump, citing scheduling issues. Outside the UN, protests against Netanyahu continued. The segment details Netanyahu's tough stance, his criticism of Iran's nuclear threat, and his efforts to rally domestic support amid international criticism. The show also highlights the delicate and contentious position Netanyahu faces on the world stage, especially as he seeks to secure his political future.

The episode covers the recent legal victory for journalists from CNN, Politico, and MSNW, as a federal judge lifted President Trump's ban on their White House access. The judge ruled that the administration likely lacked proper due process and failed to justify the national security rationale behind the ban. The journalists' access is temporarily reinstated for 14 days, pending a decision on whether to extend it. This incident reflects ongoing tensions between the press and the Trump administration over media access and transparency. The judge's ruling emphasizes the importance of due process and proper procedures, asserting the significance of press freedoms even amid a contentious political climate.

The episode reports that a tech industry group is requesting the Trump administration to remove a $100,000 fee for new H1B visas, as restrictions aim to favor American workers but risk hampering U.S. competitiveness in AI and innovation. The fee increase could make it more difficult for top foreign talent to join U.S. companies, potentially setting back the country's technological race against China. This segment highlights the debate over immigration policy and its impact on the tech sector. The industry argues that restrictive policies and fee hikes could erode U.S. leadership in advanced technologies, underscoring the tension between immigration controls and economic competitiveness.

New York State has sued Polymarket, asserting that it operates an illegal gambling enterprise, marking a significant legal challenge amid a broader crackdown on prediction markets. The lawsuit signifies regulatory efforts to rein in the rapidly growing industry, with conflicting rulings already causing a legal tug-of-war that may escalate to the Supreme Court. Polymarket and its competitor Kalshi emphasize plans to continue operating and defending their users in New York. This part of the episode discusses the legal landscape surrounding emerging prediction markets, the regulatory concerns they raise, and how this industry could face long-term legal battles.

The episode reports that 30-year mortgage rates have surpassed 7% for the first time since early 2022, creating a psychological barrier for homebuyers and contributing to stagnant sales in a slowly recovering housing market. Despite the higher rates, some homeowners are choosing to sell as they seek to move for work or family reasons, increasing inventory closer to pre-pandemic levels. Economist Nicholas Miller points out that rising bond yields, driven by inflation worries and government deficits, are pushing mortgage rates higher. The episode also notes that the increase in borrowing costs may slow new home purchases but could benefit current homeowners with low-rate mortgages who might be motivated to sell, reflecting a shifting market landscape.

Starbucks plans to close about 250 underperforming cafes in North America to enhance profitability, aiming to cut costs by $2 billion by 2028. Meanwhile, Ethiopia has returned to conflict after four years of fragile peace, with rebels seizing airports in the Tigray region and raising fears of regional spillover. Additionally, the episode features a light-hearted segment on Americans bringing French butter home. Melanie Roy shares her experience of vacuum-sealing and transporting butter from Paris, underlining the premium taste and cultural appeal of French dairy products despite logistical challenges.