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Sunday, October 4, 2026

Yemeni leader launches op to reclaim Houth-held areas

 Chairman of the Presidential Leadership Council of Yemen, Rashad al-Alimi, announced on Sunday that a military operation had begun to retake areas controlled by the Houthi militant group.

Al-Alimi said in a televised address that the armed forces, security forces, and other military formations had been instructed to begin operations under an approved plan aimed at restoring government control over Houthi-held areas, adding that the government's forces would seek to extend "the authority of the state and its institutions over the entire territory."

The Saudi-backed president noted that the operation will continue until "victory is achieved."

https://breakingthenews.net/Article/Yemeni-leader-launches-op-to-reclaim-Houth-held-areas/67229172

'UK's Greens pass motion calling for abolition of Israeli state'

 The Green Party of England and Wales passed a motion calling for the abolition of the state of Israel on Sunday, defining Zionism as a "racist ideology."

The vote passed with support from 1,022 party members, while another 813 voted against the motion. Zack Polanski-led party called for the establishment of a "single democratic Palestinian state in all of historic Palestine with Jerusalem as its capital," affirming its support for the Palestinian people to resist "Israeli occupation."

"Drop the charges. End the Genocide. Deproscribe Palestine Action," Greens leader Zack Polanski stated during the party's annual conference in Brighton.

https://breakingthenews.net/Article/UK's-Greens-pass-motion-calling-for-abolition-of-Israeli-state/67229460

'Tass: Brazilian troops seen in Rio during election'

 Brazilian army units and armored vehicles were deployed on the streets of Rio de Janeiro on Sunday as the country held general elections, TASS reported, citing its correspondent in the city.

The military patrols were reportedly seen in western districts of Rio.

Brazil's Superior Electoral Court had authorized federal troops to support election security during the first round of voting.

https://breakingthenews.net/Article/Brazilian-troops-seen-in-Rio-during-election/67229521

Supreme Court to weigh energy companies' bid to end Boulder climate-change lawsuit

 When the Supreme Court returns to the bench Monday for the first time since late June, it will kick off its new term with a major case involving an effort by the city and county of Boulder, Colorado, to hold fossil-fuel producers accountable for the impacts of global climate change.

The lawsuit from Boulder is one of dozens filed by states and local governments against energy companies in state courts that seek money damages for past and future harms that they allege are caused by the buildup of greenhouse gases in the atmosphere, which has led to global warming. 

The long-running dispute brought by Boulder targets Exxon Mobil, the nation's largest energy company, and Suncor Energy, which operates two oil refineries in Colorado. The suit remains in its early stages, and the issue before the Supreme Court is whether the suit can proceed or is barred by federal law. A win for Boulder from the Supreme Court wouldn't mean it will ultimately prevail against the fossil-fuel producers in state court.

"This is not a judgment about whether these cases will succeed. It's a judgment about whether folks get to make their case," said Jonathan Adler, a law professor at William & Mary who has written about federalism and environmental law and filed a friend-of-the-court brief in support of Boulder. "And even if they get to make their case, the scope of what they can pursue could well be narrowed and might well be narrowed significantly."

Boulder's lawsuit dates back to 2018. Filed in state court, the city and county allege that Exxon and Suncor's conduct has caused or contributed to climate change, which has in turn forced Boulder to confront extreme heat, larger and more frequent wildfires and damage to the ecosystem, among other issues.

Boulder officials raised five claims under state law. They argue that the energy companies' production and allegedly deceptive marketing of fossil fuels has led to "unchecked" use of their products that has caused a rapid rise in the concentration of greenhouse gases in the atmosphere.

Exxon and Suncor attempted to move the case to federal court, but that effort was unsuccessful. The companies also asked the Boulder County District Court to dismiss the case on the grounds that federal law foreclosed the claims against them. When the state court denied that request, the companies asked the Colorado Supreme Court to step in.

The state high court sided with the city and county of Boulder, and Suncor and Exxon appealed to the U.S. Supreme Court.

In addition to considering whether federal law precludes Boulder's state-law claims, the Supreme Court asked lawyers for both sides to address whether it has jurisdiction to review the Colorado Supreme Court decision.

Only eight of the nine justices will participate in the arguments Monday, as the Supreme Court said last week that Justice Samuel Alito had chosen to recuse himself from the case. No reason was given for Alito's decision. His financial disclosure for 2025 shows that he had individual holdings in two energy companies, ConocoPhillips and Phillips 66. He did not report individual stocks in either Exxon or Suncor.

Alito's absence leaves open the possibility that the Supreme Court divides 4-4 in the case. If that happens, the decision of the lower court — the Colorado Supreme Court, in this case — would stand.

A "national problem"

Lawyers for Exxon and Suncor argued in Supreme Court filings that the Constitution and the Clean Air Act preclude claims that seek to address harms caused by interstate greenhouse-gas emissions. The Clean Air Act, they said, did not invite state law to apply to disputes involving interstate pollution.

If the Colorado Supreme Court's decision is upheld, "it would authorize all fifty States, the tens of thousands of municipalities, and even the hundreds of millions of individuals in our country to ask local courts to establish countless, conflicting climate policies for the Nation," Exxon and Suncor lawyers argued.

Additionally, the energy companies and the Trump administration, which supports Exxon and Suncor in the case, warned that efforts like Boulder's to secure relief for the effects of greenhouse-gas emissions — including those released abroad — undermine the government's control over foreign affairs. 

"Such lawsuits would create an end-run around the United States' existing diplomatic channels for addressing climate change in favor of innumerable state judicial ones," lawyers for Exxon and Suncor said. "And the imposition of potentially devastating liability on fossil-fuel producers will undercut the government's pursuit of primacy in global energy production."

Because greenhouse gases emitted from sources in every state and around the world cannot be unmixed and traced, the companies warned that allowing all 50 states to apply their own laws would result in confusion. Only a "neutral, uniform federal law" can resolve disputes over the regulation of air and water, they said.

"It's a national problem, so it requires a national solution," Michael Williams, solicitor general of West Virginia, told reporters during a briefing Wednesday. 

West Virginia and 25 other states are backing Suncor and Exxon Mobil and argue that Boulder's lawsuit jeopardizes their ability to achieve their own policy goals on energy production and environmental protection.

"We don't take issue with the idea that a state can actually regulate sources within its own borders. So if West Virginia wants to regulate a coal plant in West Virginia, we claim the right to do that," Williams said. "In the same way, if Colorado wants to regulate emissions coming from Colorado in Colorado, they're free to do that as well. What they're not free to do is say, hey you emitters, anywhere in the world … we're going to make you pay money for any of those emissions anywhere in the world."

But lawyers for Boulder urged the Supreme Court to dismiss the appeal on the grounds that it does not have jurisdiction. If the justices opt not to, they said the Colorado Supreme Court decision should be upheld.

"Does anything implicit in the Constitution bar this suit?" they wrote in a filing. "Nothing does."

Boulder noted there is often litigation to address the local impacts of problems that could benefit from international solutions, like food contamination, human trafficking and the fentanyl crisis. The city and county's effort to hold energy companies liable is just another example, they said.

"That climate change is a global problem does not disempower states from redressing its local harms either," they wrote in a filing. "This litigation is not an attempt to solve climate change; it merely asks that petitioners bear their fair share of local costs incurred in part because of their tortious conduct."

Boulder also pushed back on the energy companies' argument that the Clean Air Act preempts its claims, and said that law governs emissions, not the conduct of the upstream fossil-fuel producers. Plus, lawyers for the city and county said they did not sue for emissions, but over allegedly deceptive marketing and production, which the Clean Air Act does not regulate.

"Indeed, avoiding liability would not require reducing emissions at all — only telling the truth, so the public can make informed consumption decisions free of the distorting effect of petitioners' misrepresentations," they said.

The Trump administration argues that Boulder's suit invites "needless diplomatic friction" with the foreign countries where Exxon and Suncor produce and sell their fossil fuels. But Adler, the William & Mary professor, noted that the Trump administration has withdrawn from international agreements that seek to address global warming and greenhouse-gas emissions.

The foreign-affairs argument "seems to suggest that any time the executive branch claims that it would like to negotiate in a space that could be implicated by companies being held liable for damages that they may have contributed to, that would really give the executive branch the ability to preempt any sort of litigation that it wanted. That can't be the law," he said. "If there was an actual conflict between an actual treaty, of course that could preempt state law. But we don't even have that."

Adler also said that Congress could weigh in and restrict suits against fossil-fuel companies for the harms tied to their products. In fact, it took similar action in 2005 when lawmakers passed a federal law that shields gun manufacturers from civil lawsuits that seek to hold them accountable for harms stemming from the criminal misuse of their firearms. 

"If Congress believes that what's going on here is a combination of plaintiffs' lawyers and activists trying to make energy less available or less affordable, or to otherwise create pressure on fossil-fuel companies, Congress has the tools to address that," he said. "That's a job for the legislature, not a job for the courts."

A decision from the Supreme Court is expected by summer of 2027.

https://www.cbsnews.com/news/supreme-court-climate-change-suncor-energy-v-county-commissioners-of-boulder-county/

Can AI Investment Drive S&P 500 Earnings Even Higher?




The AI investment boom is driving nearly half of S&P 500 EPS growth this year, but its contribution will fade going forward.

S&P 500 EPS grew 51% in the second quarter (year over year) and 26% over the past four quarters, according to Goldman Sachs Research. AI investment is expected to transition from an earnings tailwind this year to a marginal drag in 2028.

S&P 500 EPS are expected to rise to $415 in 2027 and $460 in 2028. Our strategists forecast the S&P 500 to increase to 8,700 in the next 12 months, up from 7,764 on September 21, driven by profit growth rather than a higher valuation.


The recent strength of S&P 500 earnings has raised concerns among some investors that stocks are in an “earnings bubble,” according to Goldman Sachs Research. Our strategists expect the boost to earnings from investment in artificial intelligence (AI) to gradually fade, making productivity gains from AI increasingly important for stock profitability.

Recent earnings growth has been “extraordinary,” writes Ben Snider, chief US equity strategist at Goldman Sachs Research, in a report. S&P 500 earnings per share (EPS) grew 51% in the second quarter (year over year) and 26% during the past four quarters. By comparison, the S&P 500’s four-quarter growth in EPS has averaged 7% during the past 30 years.



Earnings have also pulled ahead of their historical relationship with US economic growth. “Our base case is for S&P 500 earnings growth to decelerate, not collapse, in coming years,” says Snider.

Is the stock market in an earnings bubble?



“Because equity prices have failed to keep pace with surging earnings, near-term valuations show no hint of a bubble,” Snider writes. The forward price-to-earnings ratio has fallen from 23 times a year ago to 19 times today, matching its 10-year average.

That said, “even an 'average' multiple may be expensive if current earnings are unsustainable,” he adds. The cyclically adjusted P/E ratio, which uses the trailing 10 years of earnings, has climbed to one of the highest readings on record. It falls short of the 1999-2000 peak but exceeds the level reached in 2021.
What is the outlook for the S&P 500?


Goldman Sachs Research forecasts the S&P 500 will rise to 8,700 over 12 months, up from 7,764 on September 21. Our strategists’ outlook implies a P/E multiple on consensus forward EPS that remains close to the current level of 19 times. Snider expects investors to remain uncertain in the coming quarters about AI’s impact on long-term profits, making a dramatic increase in valuations unlikely.

S&P 500 EPS are forecast to grow about 11% in both 2027 (to $415) and 2028 ($460). Earnings are expected to be driven by solid GDP growth and a fading tailwind from AI investment that gradually transitions into a growing boost from AI productivity. “Energy prices and interest rates create near-term macro risks around these forecasts, but the impact of AI is the biggest long-term question for corporate earnings,” Snider writes.
Is the boost to the S&P 500 from AI investment sustainable?


Almost half of S&P 500 growth in EPS in 2026 comes from AI investment, according to Goldman Sachs Research. The largest US hyperscaler companies are on track to spend $800 billion on capital expenditures this year, an increase of 94% over 2025. That money is flowing through the earnings of chipmakers, tech hardware suppliers, industrial firms, and utilities, Snider says.

There are second-order effects too. The boom has lifted capital markets activity and supported consumer spending through rising household wealth. However, both consensus and Goldman Sachs Research analyst forecasts show hyperscaler capex growing at a slower rate in coming years.

In the meantime, the hyperscalers’ equipment carries depreciation charges that keep climbing as spending growth slows. This will further dampen the boost of AI investment spending to S&P 500 earnings growth.
The impact of AI investment and memory earnings on US stocks


“Hyperscaler capex has consistently surprised relative to consensus estimates during the last few years, and the potential for additional surprises going forward creates a wide range of potential S&P 500 earnings outcomes,” Snider writes. Goldman Sachs Research’s equity analysts expect $1.2 trillion of hyperscaler capex in 2027 and $1.4 trillion in 2028.

A surprise of $250 billion in either direction next year would move S&P 500 earnings growth by roughly 6 percentage points in the same direction, according to Goldman Sachs Research.

Strong demand and tight supply have boosted semiconductor prices and gross margins. Memory producers are generating gross margins of roughly 80%, more than double their historical average. “Margin expansion has accounted for a large share of recent semiconductor earnings growth, but that boost should fade going forward,” Snider writes.

The appreciation in equity investment stakes is also temporarily inflating S&P 500 earnings, according to Goldman Sachs Research. Large technology companies recorded roughly $150 billion of unrealized investment gains in private companies in the second quarter of 2026, translating to 12% of S&P 500 EPS. Goldman Sachs Research expects more of this income in the second half of 2026, followed by a much smaller contribution in 2027.



This article is being provided for educational purposes only. The information contained in this article does not constitute a recommendation from any Goldman Sachs entity to the recipient, and Goldman Sachs is not providing any financial, economic, legal, investment, accounting, or tax advice through this article or to its recipient. Neither Goldman Sachs nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the statements or any information contained in this article and any liability therefore (including in respect of direct, indirect, or consequential loss or damage) is expressly disclaimed.

https://www.goldmansachs.com/insights/articles/can-ai-investment-drive-s-and-p-500-earnings-even-higher

Multi-Million Dollar TRICARE Fraud Bought A Gold-Plated Cybertruck And Casino Parties

  by Austin Campbell via Task & Purpose,

Millions of dollars spent on casino-themed parties, expensive hotels and a gold-plated Cybertruck. It sounds like the spending spree of a character from The Wolf of Wall Street. Instead, federal prosecutors say the absurd spending was financed by a 64-year-old mental health clinic owner named Kevin Darnell Curry.

Curry, who owned and operated Acuity TMS of Plano, Acuity TMS of Fort Worth and Emerald Coast TMS of Fort Walton Beach, was convicted of submitting roughly $26 million in fraudulent claims to TRICARE, which paid out approximately $17 million.

These clinics, which offered transcranial magnetic stimulation or TMS, operated in areas with substantial military populations. His Fort Walton Beach clinic sat in the same Florida Panhandle military community as Eglin Air Force Base and Hurlburt Field, while his Fort Worth operation was near Naval Air Station Joint Reserve Base Fort Worth. A third clinic operated in Plano, north of Dallas, Texas.

The scheme involved an unknown number of active duty service members, veterans and military family members covered by TRICARE, though the indictment did not identify where they lived or which installations, if any, the active-duty beneficiaries were assigned to. Curry falsely presented himself as a medical doctor, using fake credentials to convince service members and families to sign up for the treatment.

Curry was convicted of three counts of health care fraud, three counts of offering and paying illegal health care kickbacks and three counts of engaging in monetary transactions in criminally derived property. Federal authorities previously seized approximately $200,000 in assets connected to Curry's case, including $136,022 in cash and the gold-plated Cybertruck, according to the Justice Department.

Prosecutors say Curry recruited TRICARE beneficiaries through illegal kickbacks and bribes to receive TMS, then billed TRICARE for treatments that weren't provided, weren't provided as represented or for which patients did not qualify.

TMS is a noninvasive treatment that uses magnetic pulses to stimulate nerve cells in areas of the brain involved in depression. TRICARE covers the treatment for some patients with major depressive disorder when other treatments have failed.

To qualify, patients generally had to have tried at least two antidepressants from different drug classes without success and undergone evidence-based psychotherapy that also failed to adequately treat their depression, according to the indictment.

Prosecutors say some of Curry's patients did not meet those requirements. His clinics allegedly submitted false information about beneficiaries' treatment histories to obtain authorization from TRICARE, including records claiming patients had unsuccessfully tried medications they had not actually taken.

The scheme turned military beneficiaries into a source of millions of dollars in fraudulent TRICARE payments and unfolded inside a military health system that has simultaneously been trying to convince service members they can trust it enough to seek mental health care.

Despite the benefits of treatment, an estimated 60% to 70% of military personnel experiencing mental health problems do not seek mental health services, according to the Defense Department's Psychological Health Center of Excellence.

The Pentagon attributes that gap to a range of barriers, including stigma and concerns about how seeking treatment could affect a service member's career.

Those concerns can include fears about being viewed as weak, being treated differently by military leadership or losing the confidence of others in their unit.

It remains unclear how much of the approximately $17 million paid by TRICARE has been recovered.

Curry is scheduled to be sentenced at a later date and faces up to 10 years in prison on each count.

https://www.zerohedge.com/medical/multi-million-dollar-tricare-fraud-bought-gold-plated-cybertruck-and-casino-parties

Iraq Shifts Oil Strategy by Arranging Tanker to Move Past Hormuz

 Iraq's state tanker company arranged a very large crude carrier to transport 2 million barrels beyond the Strait of Hormuz, marking a move toward offering oil outside the Persian Gulf.

Iraqi Oil Tankers Co. loaded a VLCC and arranged for it to sail through the strait "for the first time in decades," Director General Ali Qais Abdul Jabbar said in video comments published on the Oil Ministry's Facebook page. Previously, buyers would have arranged for supertankers to collect Iraqi crude at Basra, near the head of the Persian Gulf.

The transit marks a shift in how Iraq markets its crude, with the state tanker company taking responsibility for moving a shipment beyond the critical strait. Delivering outside the Gulf could help Iraq reach refiners reluctant to send vessels through Hormuz and secure better prices, reducing the discounts needed to attract buyers to its southern terminals.

Oil producers across the Middle East are rushing to secure tankers to underpin their ability restore flows of crude and refined fuels through the strait, following disruptions caused by the Iran war. Abu Dhabi National Oil Co.'s shipping arm is among those building the capacity of its tanker fleet.

Iraq is also seeking funding to purchase tankers for the company, Oil Minister Basim Mohammed Khudair told the state-run news agency on Saturday. Owning vessels would support exports and increase financial returns, he said, without saying how many tankers it wants to buy.

The company's push to buy tankers would give Baghdad greater control over crude deliveries as Iraq seeks to compete with regional producers, Qais said. He didn't identify the VLCC used for the first shipment outside Hormuz, nor its owner or the final destination and buyer of the crude.

Last month, Iraq's crude exports averaged about 2.6 million barrels a day in the period through Sept. 21, the ministry said. That was up from about 2 million barrels a day in August, but remained below the daily exports of 3.3 million to 3.5 million barrels shipped before the war.

Baghdad is also pursuing alternative export outlets, including the northern route through Turkey and a proposed pipeline to Syria's Baniyas port.

https://finance.yahoo.com/energy/articles/iraq-shifts-oil-strategy-arranging-100923807.html