WSJ Friday

0:00disability which makes reading holding a book or turning a page difficult or impossible. The content is copyrighted by the respective publishers. For more information please visit us on the web at nfradioreading.org. Hello, this is Dasha and for the next hour I'll be reading from the Friday September 11th issue of the Wall Street Journal on the Niagara Frontier Radio Reading Service. Now today's Wall Street Journal does include a cover page, actually four pages, with a reprint of their 9-11-2001 issue and a number of articles from that time and about 9-11. If you would wish to hear any of those please call 7-1-6-8-2-1-5555 and staff will be happy to read these articles to you. I am going to concentrate on today's news. On-yield, near 5%, as sell-off shows no sign of diminishing by Sam Goldfarb and Vicki

1:07Ghee White. A month long sell-off in government bonds is skidding into dangerous ground. Pushing borrowing costs toward levels that some fear will finally damage the stock market and the economy. Yeals on US treasuries which rise when bond prices fall, surge to new on Thursday lifted by a new jump in oil prices, affirm wholesale inflation report and President Trump's promise to send $5,000 checks to Americans if Republicans keep control of Congress a pledge that would add more than $1 trillion to the federal deficit. Bond yields have been climbing since late June, breasing past Treasury Secretary Scott Besson's efforts to stem the rise through increased government buybacks of its own long-term debt. In the way, the bond markets have crossed milestones unseen in months and even years. The yield on the 30-year Treasury bond has already reached 19-year highs. Now though, all eyes are on the ultimate benchmark.

2:08Mortgage's student loans, corporate bonds and interest rates on all forms of debt are linked closely to the yield on the US's 10-year Treasury note, which is on the brink of 5 percent for just the second time since the 2008 and 2009 financial crisis. Sam Stovall, chief investment strategist at CFRI Research thinks nothing good will come with a 10-year yielding 5 percent. I think that 5 percent is an emotional threshold above which investors would become increasingly concerned, he said. That could lead to additional softness in the market. Current Treasury yields not only help lift borrowing costs for consumers and companies, but also draw in investors who might otherwise shop for risky assets like stocks. So far, little has seemed to phase the stock market, which has traded new record highs all year, as even as war-raged in the Middle East and inflation-inch higher stateside. Strong corporate earnings have helped power stocks through those headwinds, lately though,

3:13the rally has sputtered. All three major indexes are down this month. On Thursday, the NASDAQ composite was down 0.7 percent, while the S&P 500 and Dow Jones industrial average were each down 0.6 percent. For bond investors, the back-up in yields echoes the fall of 2023, when the 10-year yield also crossed over 4.9 percent and even touched 5 percent briefly. And on the day they crossed that threshold, bond staged a furious rally, closed before, below 4.9 percent. Now as in October 2023, some investors might be waiting for the yield to hit 5 percent before they start snapping up bonds. But there are reasons they might not this time. For one thing, though anxiety is arising, most investors are in discomfort now that higher yields will lead quickly to a sharp slowdown in growth. In addition, the protracted conflict between the U.S. and Iran, which many now fear could

4:13go on for years, is expected to leave energy prices higher for their foreseeable future, feeding into overall inflation and keeping the pressure on the Federal Reserve to raise the interest rates. As Brent crude rose in additional 6.3 percent to $107.63 a barrel on Thursday, many investors dialed up bets that the Fed will raise rates at its meeting next week, not even waiting for Friday's important consumer price index report. Interest rate futures showed a 71 percent chance of rate-hack according to CME Group data. Up from 61 percent Wednesday and 49 percent a week ago. Just last week, Fed Governor Christopher Waller, widely seen as an influential member of the Central Bank, said that he would support holding rates steady if the CPI report shows core prices rising 0.2 percent from the previous month, matching economics forecasts. Investors, however, have put greater weight on comments made by Fed Chairman Kevin Warsh

5:17at the Fed's Jackson Hole Wyoming Conference last month. There, Warsh sounded so concerned about inflation that many investors thought he had painted himself into a corner, needing to raise rates this month, whether the economy required it or not to maintain the central bank's credibility. The bond market is saying very clearly that the Fed is going to raise rates, said Ray Remy, vice chairman at Taiwan Capital Markets America. The bond market is not waiting for tomorrow's CPI to make that determination. Yeals on treasuries largely reflect investors' expectations for what short term rates are the Fed will average over the life of a bond. They in turn influence other borrowing costs. The average 30-year fixed mortgage rate ticked up to 6.7.6, 6.76 percent this week. Freddie Mac reported Thursday up from 6.71 percent last week. Faced with rising yields, bestsint last month, made the surprise announcement that he would

6:18at least double buybacks of longer term treasuries, expanding a program that was originally intended to improve liquidity in older off-the-run securities. Bestsint centrally in Trump's second term, that pushing the 10-year yield lower was a priority for the administration. He has explained his decision to expand buybacks by saying current yields don't reflect economic fundamentals, giving support to the view on Wall Street that he is at least trying to limit the rising yields. On that front, he has had to side at least mixed results. This is original announcement. Eels on longer term treasuries haven't climbed as much as those on short term notes. But they are still moving higher and did so even after the Treasury Department said it would buy up to 6 billion dollars of longer term bonds at its operation on Thursday, three times the previous maximum. As it turned out, the government, which is supposed to buy only only buy treasuries at prevailing

7:19market prices, reported Thursday afternoon that it had only bought 5.2 billion dollars of 10-year to 30-year treasuries. That was a sign that it could have trouble buying as much bonds as investors have expected, unless it relaxes guidelines on the prices it will pay. Eels on longer term treasuries ticked even higher after that result. The yield on the 10-year note settled at 4.943%. Its highest close since October 2023, up from 4.836% Wednesday, according to Trade Web. Stock investors have been grappling with the spill overs from the bond market turmoil, while confronting a wall of worry built on sticky inflation, war fueled spike in oil prices, and fed interest rate uncertainty. To make matters worse, September is historically the weakest month of the year for stocks, with investors returning from summer, often resetting their positions. Some stock investors are tuning out the bond market for now, and looking ahead to Friday's

8:21inflation report, and next week's Fed decision. Could the equity market move into a more protracted downturn if CPI is well out of consensus tomorrow? I said, Mark Hackett, chief market strategist for nation-wide? That's the bigger risk than the somewhat arbitrary nature of 5% yields. The US's home sales funk continues by Nicholas G. Miller. Home sales in August fell to their lowest level in more than a year after rising mortgage rates dealt another blow to a hobbled housing market. Sales of existing homes fell 2% in August over the previous month, to a seasonally adjusted annual rate of 3.98 million. The National Association of Realtors said, that is the lowest since June 2025, when the rate was 3.93 million. The decline in sales was roughly in line with expectations. Economists surveyed by the Wall Street Journal had forecast a 2.2% drop.

9:24The housing market is well into its fourth year of stagnant sales. Mortgage rates jumped after President Trump's war in Iran and have continued rising towards 7% as hopes were a clean end to the conflict fade. Meanwhile, home prices continued to climb. The National Media and Existing Home Price in August rose 1.6% from a year earlier to $429,100, the NAR said. The slowdown in existing home sales marks a continuation from July when home sales fell 1.7%. Last week, mortgage rates were tied to the 10-year Treasury yield rose higher after a bond fell off driven by investors' fears of stubborn inflation and soaring government deficits. On Thursday, the 10-year yield rose to 4.9%. It's highest level since 2023, a day after the Treasury Department said it would buy back up to $6 billion in longer-term debt in its Thursday operation.

10:28The 30-year fixed rate averaged a 6.76% this week, according to Freddie Mac, up from 6.23% in April and below 6% in February. The real estate industry had hoped this year would mark the beginning of the market's recovery. Inventory has improved slightly as some homeowners decided to move even if it means stomaching high rates. NAR said, unsold in inventory in August rose 3.2% from July to 1.62 million units. Home buying demand is also being supported by wage growth and job creation, said NAR chief economist Lawrence Yun. But with conflict in the Middle East intensifying, rates are unlikely to fall soon, economists said. Deep biologic drugs stall, risking health savings by Xavier Martinez. Of the expensive widely used biologic drugs facing patent expiration by 2034, 90% have no

11:31lower cost alternatives in development, according to a new report by the Association for Accessible Medicines, a trade group representing generic drug makers. This means Americans could miss out on nearly $200 billion in health care savings over the next decade, with 118 biologic drugs going off patent, according to the group's estimates. These drugs are highly complex medicines, made inside living cells, and often end up being multi-billion dollar blockbusters. The market for newly launched biosimilars, lower cost copycat versions, suffered a steep decline in recent years. The rate at which available biosimilars are dispensed to patients over brand name counterparts fell to 23% in 2025, down from about 40% in 2024. That is partly because pharmacy benefit managers, middlemen that decide which drugs people are steered to through insurance plans, often place brand name drugs over cheaper biosimilars.

12:33The AAM said. PBMs get rebates calculated as a percentage of a drug's list price, with higher price brand drugs yielding larger payments. The AAM said brand name drug makers exploit the system by offering PBMs massive rebates on original drugs. The payment and reimbursement systems out there are built to favor higher priced brand products, said Alice Keaton. Executive director of AAM's biosimilars division that leaves a biosimilar manufacturer asking, I can bring value, but is that market going to be there? A spokesman for the pharmaceutical care management association, which represents PBMs, said drug makers abuse of the patent system far too often blocks biosimilars from the market, adding the PBMs are working to make biosimilars the primary option for patients. A spokesman for the pharmaceutical research and manufacturers of America, which represents

13:37drug makers, said the lack of biosimilars under development is the fault of PBMs. If the policy makers want lower costs and faster competition, they should focus on insures PBM, Congolamer, it's not the intellectual property system that has delivered more than 900 new medicines since 2000, he said. Used to treat conditions such as cancer, biologic drugs account for a growing portion of the U.S. drug spending. Several big drug makers, including Pfizer and Amgen, are large biosimilars. In an inset, in a larger article on a crypto-billionaire Fred Erschum, setting sites on Venezuela's oil patch, which we will be happy to read to you at 716-821-5555. You might be glad to hear about it. Newcomer brings fresh capital. Fred Erschum wasn't present last week at Miraflora's Palace in Turokos, when Energy Secretary Chris Wright and Interim President Delci Rodriguez unveiled U.S.

14:40investment deals. But, primavera co-founder Manuel Irabarron told Rodriguez that the company aims to quote, bring clean, reliable and low-cost energy, end quote, to the country. Erschum has one thing Venezuela's oil sector is in need of fresh capital. He co-founded Coinbase in 2012, after leaving Goldman Sachs, where he worked as a foreign exchange trader. He later formed crypto investment firm Paradigm in 2018. Erschum's net worth came to about $2.4 billion this year, according to Forbes, stemming largely from a 2% stake in Coinbase and other cryptocurrency holdings. In Venezuela, cryptocurrency has become ubiquitous after the value of the Bolivar plunged during a stint of hyperinflation. Ausditz-Dwangmann, Niko Las Maduro, launched a state-backed coin called the Pethro, in 2018 that failed to gain traction. But other tokens have thrived there.

15:41Erschum's experience and expertise in the sector could lend itself to opportunities in Venezuela's ecosystem of digital payments, some of the people familiar with his efforts said. You are listening to a reading of articles and features from the Wall Street Journal on the Niagara Frontier Radio Reading Service. Taking a look at the opinion pages under review and out, look we have Trump has a $5,000 leverage to sell you. President Trump has a special talent for exposing the cynicism of modern politics and he knows it. A Trumpian classic is his promise Wednesday night of a $5,000 dividend for every U.S. adult citizen if Republicans retain control of Congress in November. Here's my promise. If the Republicans win the House of Representatives and the United States Senate, I will issue a dividend to every adult citizen in the United States of America for $5,000. Mr. Trump said at the GOP's midterm convention in Dallas.

16:44There are roughly 240 million American adult citizens. Multiply that by $5,000 and you get about $1.2 trillion. The amount is so preposterous that you'd almost think Mr. Trump is trying to show voters the absurdity of such income redistribution. It's the Reddoctorio ad absurdum of wealth and state politics. We doubt this is what Secretary Treasurery Secretary Scott Besson had in mind when he recently promised a quote fiscal consolidation plan. And we doubt it could pass Congress. At least we hope not. In the unlikely event, Republicans retain control of Congress. They might feel pressured to make good on a slimmer version of Mr. Trump's pledge. They incorporated some of his 2024 campaign pitches, e.g. no tax on tips, into last fall's tax bill. Vote buying has a long political history and Democrats are professionals at the game. They do it by passing programs in the name of some high-toned principle, like income equality or a fairness. Mr. Trump's cynical genius is that his

17:49political bribery is running naked in the street. Select my party, get a check. But caveat is that voters may not buy the offer. In December 2020, he pushed for another round of $2,000 COVID payments. And Democrats use that to pressure Republicans into passing an end of year spending bananze that included $600 checks. Despite the handouts, Republicans lost both Georgia Senate seats in the January 2021 runoff. Democrats in March 2021 passed another round of $1,400 stimulus checks and so much more. That spending spree is how the U.S. got 9.1% inflation and now $40 trillion in debt. Mr. Trump is resorting to this because voters are unhappy about inflation and don't think his economic policies have helped them. His tariff tax increases are a big part of the reason. If he repealed those, he'd give the country an economic

18:51dividend without spending a dime. Looking at Potomac Watch by Kimberly A. Strassel, Trump targets the wrong base. Know your audience goes the old line, a maximum to maximize the speaker's effectiveness. President Trump opened the GOP's midterm convention Wednesday by speaking for nearly two hours to all the wrong people. Excitement in Dallas's American airline center was certainly huge. Thousands of loyal supporters donned Trump hats and buttons and pins, waved signs, and more to approval throughout the president's address. Fans traveled hundreds of miles and waited in line for hours considering Trump live the fulfillment of a bucket list. This is the GOP's midterm strategy. Triple down on the mega base. The impulse stems from polls showing Republicans suffering from a big enthusiasm gap compared with Democrats. The GOP has internalized

19:52the belief that his problem is mega loyalists who tune out when Mr. Trump isn't the main event. So they're running this president as if he's on the ballot while the president runs entirely to his most loyal crowd. That's an incredibly risky midterm bet based on a potentially fatal misreading of the data. Bases are sprawling things and today's Republican version can be broadly separated between mega enthusiasts, deeply loyal to Mr. Trump, and more traditional Republicans. Polster Scott Rasmussen of RMG Research makes that distinction by asking voters the following question. If you had a choose between four candidates of equal character and competence, would you prefer someone who advocated A. Trump-like policies, B. Traditional Republican policies, C. Traditional Democratic policies, or D. Policies like those of Democratic representative Alexandria Ocasio-Thortes. The key point coming out of RMG's most recent polling on

20:58that question, that mega base, who answered A, is already fired up. The August numbers show that more than 50 percent of them are very enthusiastic about voting. Every bit of data we have show the Trump group is just as excited as Democrats. Mr. Rasmussen says, this base remains steady to crawl across glass for this guy. No surprise. Since January 2025, Washington has been the Trump show, with the president leading every headline. He's also been exclusively speaking to the mega crowd most of this year. It explains the president's obsessions with topics that make the GOP strategies want to pull our hair out. Who loves listening to the president wax on about the anti-weaponization fund, the mega crowd. Who is most interested in the cage matches at the White House? Mega. Want to know who thrills to hearing Mr. Trump rename Lake Ontario? Mr. Rasmussen has data on that one. Nearly 70 percent of the Trump base favors it.

22:00The rest of the country, 28 percent. It's everyone else in the GOP base and independence, who should concern the GOP, especially because the category has grown the past 18 months, while the mega crowd has shrunk. At the time of Mr. Trump's 2025 inauguration, 38 percent of registered voters said they favored Trump like policies, compared with 14 percent who preferred traditional GOP policies, and about 20 percent for each Democratic category. Those choosing the mega have since dropped 10 points, but they haven't dropped out, waiting to be re-enthused. The data show that most have migrated back into that category of voters who prefer a more traditional Republican approach. That number is up 7 points at 21 percent. The Democratic figures have barely budged. Of the now much larger category of traditional Republicans, a mere 25 percent are very enthusiastic to go vote. That is the GOP's turnout problem, not the Krause and Dallas. Parties traditionally rely on primaries to engage dedicated voters,

23:07then pivot in the fall to the rest of the fold. Those less tuned up were moderate, more skeptical of party ideology. These are the people Republicans need and are studiously ignoring. Why? The Trump inner circle has spent too many months reinforcing the notion that the polls are lying, while simultaneously jeering at rhinos and Reagan zombies they actually need. And with good luck with that. RMG's most recent polling shows that only 11 percent of voters even knew the GOP was having a midterm convention this week. It isn't too late for Mr. Trump and the GOP to speak more widely. Polls show that the Democratic advantage on the congressional generic ballot and on specific issues is soft by comparison with past midterms. The broader electorate doesn't feel Republicans have delivered, but they also aren't jazzed by Democratic Socialists. So there's new merit to the GOP's new strategy of highlighting the choice voters face between GOP growth policies

24:11and left wing lunacy. But more is needed to inspire traditional Republicans to go vote, and the solution is almost painfully obvious. Republicans need to talk about what they are going to do next, specifically how they're going to bring down prices. No way 5,000-dollar Trump dividend isn't the answer. If the GOP really wants his convention to be a success it'll come out of the event with a forward looking agenda. From Joe Flint we have Kimmel takes aim at FCC over rules. ABC late-night host Jimmy Kimmel criticizes the Federal Communication Commission and the Trump administration for what he described as efforts to chill speech and restrict shows such as his from airing interviews with political candidates. In his Wednesday night monologue, Kimmel said an interview with Democratic Texas Senate candidate James Celerico wouldn't air on ABC because the Disney-owned network feared running a foul of the FCC's equal time rules.

25:16Those rules require broadcast outlets that have candidates on during elections to also give their opponents their time, although there has been a longstanding exemption for news and talk show interviews. The interview was set to be streamed Thursday on YouTube. In January the FCC issued what it called guidance on the equal time rules that was widely interpreted as aimed at late-night daytime shows that often feature Democratic politicians. Kimmel's remarks escalate the fight between ABC, Disney and the FCC which has multiple proceedings against the network and its stations. The FCC didn't respond to a request for comment. The ECB lifts rates as inflation rises by Chelsea Delaney. The European Central Bank raised interest rates for the second time this year and warned inflation pressures aren't going away soon, leading investors to price in more policy tightening from the central bank. The ECB's heightened concern about inflation added fuel to a

26:17government bond market sell-off, sending benchmark borrowing costs in Germany and France to their highest levels since 2011 and 20 2008 respectively. ECB President Christine Lagarde said above target inflation will be longer lasting than we had anticipated. Inflation is heating back up in Europe, climbing to a three-year high of 3.3 percent in August after easing this summer. The ECB previously forecast inflation would return to its two percent target by 2028, but its latest projections show inflation remaining slightly above that level then. Renewed fighting in the Middle East could prolong the struggles of bringing inflation down again. Global oil prices climbed back above $100 a barrel this week for the first time since July and natural gas prices in Europe have jumped to their highest level since 2023. Lagarde said growth has proved more resilient than expected, boosted by AI activity and investment, suggesting the economy can tolerate higher levels

27:20of interest rates. Investors added to bets that the ECB will raise rates again after the decision with derivative markets now fully pricing in another increase by year end. A head of the meeting some investors thought the ECB was on the verge of pausing its tightening campaign. The ECB has taken a more aggressive approach to fighting war-driven inflation than many of its peers leading the pack in June with a rate increase. A majority of investors expect the Federal Reserve to raise rates for the first time this year when it meets next week according to CME Group Data. The Bank of England is expected to raise rates in November. The ECB had more runway to tighten policy because unlike in the US or UK, its key interest rate heading into the Iran war was well below the level economists view as neutral, neither restricting nor stimulating the economy. Growth has held up surprisingly well this year with the economy expanding 0.6% in

28:22the second quarter or 0.3% excluding Ireland where growth is prone to big swings because of its role as a hub for US multinationals. Bank lending also has been resilient in recent months. Suggesting interest rates aren't yet weighing in on the economy according to Goldman Sachs. The ECB boosted its growth forecast for this year and 2021, citing the unexpected resilience in the economy. Lack of out described Thursday's decision to raise rates as a no-brainer, but coming interest rate decisions could be more divisive, said Constantine VIII, a portfolio manager at PIMCO. You're listening to a reading of articles and features from the Wall Street Journal on the Niagara Frontier Radio Reading Service. Turning to the Business and Finance section, in heard on the street, Financial Analysis and Commentary, IPO sells AI hype today for payoff

29:29years away. This is by Ginger Lee. There are some eyebrow raising details in the filing of soft bank backed SB energy, a power and data center developer that plans to go public as soon as this month. None of its three planned data centers are operational, for example. Its relationships with soft bank, open AI and Nvidia stretch the possibilities of circular financing. But there is also a simple, simpler observation that makes this IPO unusual. Development is a risky business with lumpy earnings pattern that makes it un-holitable from any public market investors. The earnings pattern sucks for a typical developer, said Ted Brent, chief executive of Marathon Capital, a clean energy focused investment bank. Development can take years and requires a lot of upfront expenses, meaning a company can post years of losses before the SSR is generating cash,

30:30she said. That cash flow pattern is more manageable if the company already has a big base of operating revenue generating assets, as is the case with listed power plant owners such as next era energy resources and Vistra energy. Data center developers, digital reality trust and equinix both had an operating base of data centers when they went public. Plus data center development is a crowded field with new entrance popping up like wildcatters. There are 360 companies with at least one planned US data center, according to data provider clean view. SB Energy does have some advantages over some of these speculators. One is that it's an experienced power developer, having built solar and battery storage projects since 2019. It also has $430 billion in potential revenue lined up through some very large data center contracts. Primarily with OpenAI is the

31:32customer and some backstop support from Nvidia. There is a good margin of potential given that the data centers operating costs, insurance premiums and property taxes will be passed on to the community customer. The customer is also responsible for bringing its own computing hardware. However, about 82% of this backlog won't arrive for at least eight years. And a substantial majority of this is expected to come from one large project, the Port's Pike Technology Campus in Ohio, which will have a total power of 10-gig watts, according to the filing. This project accounts for 90% of SB Energy's data center contract capacity and is expected to start in phases from 2028 to 2032. Its contracts have an average length of nearly 20 years, which means some of its backlog revenue will stretch out to the 2050s. The long development timelines mean the company could be

32:37burning cash and reporting losses for some time. The company expects to spend about $174 billion on capital expenditures on those data centers. It will take on substantial interest expenses, too, given it plans to fund the majority of this cost through debt. Another risk, the flagship Port's Pike Campus relies on a 9.2-gigawatt natural gas-fired power plant that SB Energy won't own or operate. The company notes in its filing that an affiliate of Softbank, which isn't SB Energy subsidiary, will be developing this power plant with funding from the U.S. government and Japan. So far, though, there are no binding agreements to fund, construct, own, or operate this facility. The company expects to have 10-gigawatts worth of grid interconnection, too, but most of this is still subject to approval and SB Energy notes that it will likely need power in addition to the grid connection. The promise of the revenue backlog also requires

33:42that all the AI stars align a huge assumption. At a time when there is much, both scrutiny of everything data center related, SB Energy must still obtain multiple permits, get final interconnection approvals, make sure the required power equipment arrives on time, and raise debt on the back of contracts with OpenAI, a counter party with no credit ratings, with partial support from NVIDIA. Delays will have consequences if SB Energy fails to start data center operations by its deadline for ports pike, it must give OpenAI a free day of base rent for each day of delay. This escalates to two days worth of rent after 90 days. For a today's agenda project in Miloom County, Texas, a one-year delay could trigger a buyout option under which AI can purchase the data center at a price that could be materially below the value of the least revenues SB Energy would have otherwise gotten according to the filing. SB Energy's

34:45revenue backlog is notable. For investors to count on it though, many things will have to fall into place at the right time. What are bond yields saying about stocks by Spencer Jacob? Pundits, your faithful newsletter included, sometimes talk about markets like their people with feelings of their own. Stocks hate uncertainty, maybe trying to find a bottom or refuse to go down, they get nervous or complacent. The market can even take physical form trying to catch its breath or climb a wall of worry. Of course, prices move on the actions of millions of participants with a buyer for every seller. Stocks do give signals but they're fuzzy and people see what they want to see. Bonds are supposed to hinge more on math and sentiment. They can sway stocks future in the longer run though. So what are they saying? As a positivity, positively, stock-like disagreement now, with some worried and others relaxed or even upbeat. For example, strategists compare yields with

35:49nominal economic growth on that measure, which some use to predict how stocks will behave in the future. Even in nearly 19 year high and the longest term US Treasury yield is low enough to give stocks a better than average chance of rising. But that growth is being supercharged by one of the highest budget deficits ever during an economic expansion. At the same time, booming corporate borrowing is going to disproportionately build AI infrastructure. If that results in much greater US productivity, then it could be fine. But it's an increase in the large if. And, while hard to separate from the Iran energy shock, inflation has been high almost since deficit swelled during the pandemic. It's more relevant to compare real bond yields adjusted for inflation with how expensive stocks are. Professor Robert Schill is an excess-cape yield measure, which turns his famous cyclically

36:49adjusted price and earnings ratio upside down into a percentage. And then subtracts real bond yields, just dip below 1%. It has been four times as high on average since 1950. In the past, a low excess cape yield has predicted lousy returns for the S&P 500 over the next decade. Another reason to doubt the glass have full explanation is that bond yields are near multi-decade highs in other developed markets too. Mainly those with giant government debt loads. Growth in France and Britain is sluggish, and those aren't AI powerhouses either. So, there we go, pretending it's human again. Is the US bond market worried about the national debt and the coming surge in AI borrowing? One argument is, one argument that it isn't, is the low cost of protecting US debt by a credit default swaps. But that might be the silliest insurance ever sold akin to an Armageddon policy.

37:50Barring that, the US can always run its printing press to repay creditors in devalued dollars. Meanwhile, there's a sneaking suspicion that the bond market's concerns aren't being fully heard. After his former protege, Treasury Secretary Scott Besson, said the US would double repurchases of long-term bonds when they hit a previous peak. Star hedge fund managers Stanley Druckenmiller cried foul in the Wall Street Journal. The title of his op-ed, you guessed it, let the bond market speak. Data centers set a lightifier under uranium prices, this is by Rian and Hoel. Data centers have helped push copper prices up to record highs, some commodity market participants, and think they can drive uranium prices higher too. The spot price of U308, a lightly processed concentrated known as yellow cake, that used to make fuel for nuclear reactors, is at its highest

38:53since early February, according to market data firm UXC. At almost $90 a pound, it's almost five times as much as sellers refreshing at the lowest parts of the downturn that followed the Fukushima reactor meltdowns in 2011. Long-term prices, reflecting what power companies are willing to pay, under multi-year contracts, are at their highest level in at least 18 years, might or say. Data centers need electricity, lots of it, to operate. With a wary public already raising concerns about data centers drawing on local electricity supply and consequently driving up power bills, some hyperscalers have talked up the opportunity to run the facilities using new layer power. Just this week Nordic Utility Fortram signed a deal with Alphabet's Google to power data centers in Finland, extending the life of its Lovisla, Lovisa nuclear power plant. On a recent call with executives of BHP Group, Baron Joy Allen's analyst, Glyn Lawcock,

39:57asked if the world's biggest minor has become more bullish about uranium. Our default is has many of the attributes of copper, Lawcock put to the BHP executives drawing parallels between uranium and the industrial metal that is central to the minor's growth plans. BHP produces uranium and is copper mining operations in South Australia and has a new chief executive officer at the helm. In response to lawcock, CEO, Prandt and Craig described uranium as very attractive, though at this stage, only as a byproduct to favored commodities such as copper. The exchange reflects the Renaissance underway in the uranium market, which spent a decade in the doldrums after the Fukushima meltdowns. The tail winds for uranium prices extend beyond data centers, and the boom in artificial intelligence. Countries are investing in new power projects to meet energy security wrote goals and phase out fossil fuels such as coal, which have blamed for emitting greenhouse

40:58gases into the atmosphere. Uranium supply growth has trailed market expectations, analysts say UBS sees market deficits swelling into the 2030s and beyond. On this day in market history, in 1789, Alexander Hamilton was sworn in as the nation's first secretary of the treasury. David Uberty offers that oil prices catapulted higher Thursday, thanks to renewed escalation across the Middle East, pushing Brent crude futures to $107.63 and pressuring stock and bond markets worldwide. The global benchmark has risen for five sessions in a row to not just highest closing levels since May 19th. At the same time, the average US price for a gallon of gasoline, neared at $4.28 Thursday, according to the AAA, while diesel approached $6 a gallon. And in the stock spotlight, Apple shares advanced nearly 4% in trading

42:07Thursday, a day after it introduced its first foldable iPhone at a product event that also featured Apple's new CEO, John Ternis. Oracle shares finished 5% lower ahead of its earnings report, following Thursday's closing bill, the company just closed sharply higher profit revenue. Shares rose in after hours trading. Jet blue airways shares edged lower after it reduced its capacity growth outlook for the third quarter by nearly half. TSMCs use US listed shares slipped 1%. The chipmaker reported that August revenue served 53% from last year. And despite raising its guidance on strong earnings before the bill, Macy's shares finished nearly 5% lower. Associated British food shares slid nearly 8% after the conglomerate cautioned on the outlook for its sugar and grocery units ahead of the planned split of its food operations

43:10and fashion arm primark. Designer brands footwear soared 15% after it raised its full year outlook. Siding a strong start to the current quarter. Dobie hits 1 billion users milestone by a lious shishkel. A Dobie said it hit 1 billion monthly active users and lifted its full year guidance as his profit revenue rose in a third quarter. The software company's milestone comes as it focuses on expanding its freemium artificial intelligence offerings to drive user acquisition and long-term revenue. This strategy may come at the expense of short-term annualized recurring revenue growth. 30-quarter profit rose to $1.83 billion or $4.62 cents a share compared with the profit of $1.77 billion or $4.18 cents a share or a year earlier. Stripping out certain one-time items adjusted earnings were $6.13 cents a share. Analysts pulled by FACTSAT had been expecting $6.08

44:18a share. Revenues rose 13% to $6.76 billion, beating analyst expectations for $6.69 billion. The bulk came from subscription revenue which grew to $6.58 billion from $5.79 billion. The results come amid shakeups at Adobe's top levels. Last week the company appointed the head of its customer experience unit, Anil Chakravarti, as is the next chief executive effective December 1. The company is also searching for a new finance chief after its previous finance chief financial officer, Dan Durn, left to join Marvel Technology in June. Adobe boasted its outlook for the full fiscal year, rejecting adjusted earnings between $24.45 a share and $24.50 a share and revenue between $26.576 and $26.66 billion. The company had previously guided for

45:27adjusted earnings between $24.35 and $24.45 and revenue in a range of $26.5 billion to $26.6 billion. Analysts pulled by FACTSAT currently expect full-year adjusted earnings of $24.42 a share on $26.54 billion for the current fourth quarter. The company is projecting adjusted earnings between $6.35 on revenue between $6.8 billion and $6.85 billion. Analysts are currently expecting adjusted earnings of $6.31 a share on $6.84 billion in revenue. You are listening to a reading of articles and features from Wall Street Journal on the Niagara Frontier Radio Reading Service.

46:27Florida emerges as a hotbed for a defense financing by Deborah Acosta. Venture Capital Powerhouse under his and Harlowitz is launching a regional headquarters in South Florida, focusing on defense investments two years after it fled the region following the short-lived crypto office in Miami. The Menlo Park, California firm plans to open its new base next year in West Palm Beach, where a team will oversee the American Dynamism Fund. That vehicle has raised $1.18 billion for startups, building technologies for national security and the industrial economy. Florida is emerging as a major hub for companies financing the burgeoning new defense and business, which is increasingly turning to startups as artificial intelligence and drone warfare reshaped the battlefield. The state home, the state is home, to the three headquarters that plan and coordinate military operations across Latin America, the Middle East, and special global operations. The state also hosts the nation's premier

47:30national security launch complexes up and down the coast along the Atlantic in central Florida. Florida also features a constant concentration of government institutions that buy defense equipment and a growing pool of wealthy investors. Florida's embrace of the defense industry is part of a shift in the state's economic identity, notably after Miami pulled back from previous efforts to position itself as the world's crypto capital. Governor Ron DeSantis last week said the state was investing nearly $23 million to strengthen the state's defense industrial base, pushing to capture a portion of the defense tech boom. Florida offers a suite of unmatched financial tools that lower the cost of capital through tax savings and other measures said Rob Long, chief executive of space Florida, the state's aerospace finance development and space board authority. Florida's military and

48:31defense industry generates $102.6 billion in economic impact and supports more than 865,000 jobs statewide according to the Florida Defense Industry Economic Impact Analysis. Space and defense oriented startups have begun to pop up in South Florida too, including space size, a geospatial intelligence and counter drone technology company that recently bought brought on Eric Trump as an investor and strategic advisor. Satellite manufacturer Terran Orbital built out its South Florida footprint before it was acquired by Lockheed Martin in 2024. The sheer number of defense tech startups based in Florida is still relatively small, trailing bigger hubs like Northern and Southern California, Catherine Boyle, General partner Ed Andreessen Harrow, it's a co-founder of the firms American dynamism practice, said she has higher hopes for investing in defense startups in the state.

49:34We've seen capital move to Florida in the last five years and droves, Boyle said. It really is this incredible ecosystem that's been built up over the last several years and it's becoming an important nexus for space, military and funding. Steven Ross, the real estate veteran and biggest developer in West Palm Beach recorded Andreessen, thinks the VC's firms move shows young people this is a place where they can start up businesses and grow in an environment that really perpetuates growth. It isn't alone. Palantir, the data mining giant, deeply entrenched in federal defense contracts, also recently relocated its global headquarters to Miami. In some shorter notes, designer brands profit increased amid sales decline. Designer brands raised its full year outlook, citing a strong start to the current quarter. The updated forecast came as the footwear and accessories company recorded higher profit

50:37despite lower sales in the second quarter. The company now expects net sales to be flat up to 1% for this fiscal year compared with the prior range of down 1% to up 1% and now respects adjusted earnings per share of 47 cents to 52 cents compared with 28 cents to 38 cents previously. Executive, chief executive, Doug Howe said the company is making progress on the strategic plans. These efforts have contributed to improved retail trends and a positive start to the third quarter, he said. Second quarter profit was $17.6 million or 31 cents a share compared with $10.5 million or 21 cents a share a year earlier. Adjusted earnings per share were 34 cents the company said revenue in a period fell 1.2% to $730.6 billion with the same store sales down 2.4%.

51:38This was by Kelly Klinon. Amy Lookoffer said AB Foods, associated British foods, shares slid after the conglomerate cautioned on the outlook for its sugar and grocery units ahead of the planned split of its food operations and fashion on primark. Shares in AB Foods fell 7.9% in London on Thursday taking the stock's year-to-date loss to nearly 13%. AB Foods, home to Twinings T and Potox Spices, said it for season-adjusted operating loss for its sugar unit in a year to September 20, 20, 27 to be in the range of 70 million to 170 million pounds, 94.8 million to 230.3 million with losses deepening compared with what it expects for the current fiscal year. For the year ending Saturday, AB Foods anticipates an adjusted operating loss for its sugar business

52:38toward the higher end of its guidance range and between 25 million pounds and 60 million pounds. AB Foods also tempered the outlook for its grocery business for fiscal 2026 projecting an adjusted operating profit to be slightly lower below its prior forecast. From Dominic Chapping, we have AutoGlass Company Belron is exploring strategic options for the business, including a potential stock market listing. The company's majority owner, Belgian Investment Group, Dietrin, said Wednesday that Belron shareholders are evaluating options regarding the minority stakeholder shareholder stakes, but that no decision has been made. Windscreen replacement and repair business Belron, which accounts AutoGlass in the UK, CarGlass in Europe, and SafeLight in the US among its brands, is led by former AB Inbev, Chief Executive Officer Carlos Brito.

53:42The company's Chief Financial Officer, Humphrey Singer, was finance chief at Marxon Spencer. The company reported a pre-tax profit of 526.1 million euros or 612.1 million dollars in the first six months of the year as sales rose 4.7% on year 2, 3.57 million euros and 3.5 million euros, void by strong growth in North America. It's largest sales market. And from Joe Stoner and Amy Look, we have HSBC, is looking for a new Chief Financial Officer, following PoundCowers' decision to depart after marshalling a strategic overhaul at Europe's largest lander. The London Headquartered Bank said, Cower, intends to leave a role next year. A search for Cower's successors underway, considering both internal and external candidates,

54:42the bank said, Cower will take on an advisory role to CEO George Eldaherry, to L. Hadderry, to help with the process, according to the statement from the bank Thursday. Cower assumed the role of Chief Financial Officer in January 2025, becoming the first female group CFO in the bank's history. She joined HSBC in April 2013 as group head of internal audit after holding multiple positions at competing European lenders. During Cower's tenure as CFO, Eldaherry undertook a sweeping overhaul of the business. He has sought to focus on retail banking in the US and Hong Kong to connect large companies with global markets. And finally, Mistral Partners with Data Company, by Mauro Oro-Mistral, is partnering with American Data and Software Company, Claudera, in an effort to grow its enterprise customer base by building exposure to highly regulated industries that are increasingly turning to advanced artificial

55:46intelligence models. Enterprise customers, including large financial institutions, healthcare groups and government agencies, are crucial for companies like ChatGPT Maker OpenAI, Anthropic, and Mistral, because they have the financial firepower to pay for AI tools at scale, providing a steady revenue stream for AI labs. As regulation across industries grows, particularly in Europe, so does the need for AI labs to provide sovereign AI tools that enterprise clients can leverage for their own needs in a way that keeps all data under their control. Mistral said it was partnering with Claudera to meet growing demand for sovereign AI. The French AI startup will integrate its models with Claudera's hybrid data platform over the coming weeks so that enterprises can deploy and train them with proprietary data within controlled environments. The announcement comes days after Mistral completed a funding round led by South Korea's Samsung electronics that lifted its valuation above $24 billion. Joining forces

56:54with Claudera will bolster Mistral's exposure to clients across regulated industries as enterprises seek increasingly capable AI models to streamline their operations. Mistral Chief Revenue Officer Marjorie Janowitz told the Wall Street Journal that the company wanted to bolster its presence across regulated industries where companies need to control their data and customize models so they can better understand the nuances of the industry in which they operate. The French startup is a staunch defender of open-weight models, those that are publicly available for anyone to download and modify, saying they give enterprises the flexibility to tailor them to their needs while protecting their data and intellectual property. Claudera's Ricky said the partnership reinforced both companies' commitment to open-weights and open source. Newscore, owner of Dow Jones Newswires and the Wall Street Journal has a content licensing partnership with OpenAI.

57:55You've been listening to your reading of articles and features from the September 11th issue of the Wall Street Journal. We read from the Wall Street Journal every Monday through Thursday at 11pm and Friday at 6pm. Your reader has been Dasha. Thank you for listening. Coming up next in the Niagara Frontier Radio Reading Service, we have the Buffalo Criterion. A day at the clock we have in the New York Times. A day at the clock we have Discover magazine. Stay with us for these readings and more.

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