TL;DR

Coinbase hit by DOJ probe; India offers zero tariffs on US goods; Subaru hikes prices on tariffs.

Highlights

• DOJ investigates Coinbase data breach involving bribed contractors in India; $20M bounty offered, six lawsuits filed 1.
• Houthis announce naval blockade on Israel’s Haifa port; Israeli airstrikes target Yemeni ports 2.
• Trump reports “some progress” in Ukraine cease-fire talks with Putin; delays new Russia sanctions 38.
• India offers to eliminate all tariffs on US goods; interim trade deal expected before July 4.
• Subaru to raise US vehicle prices by $2,200 from June 1, attributed to Trump tariffs 5.
• Reserve Bank of Australia to cut rates by 0.25%, second cut this year; AUD likely to stay soft 6.
• Galaxy Digital ($GLXY) gains 6% on Nasdaq debut; Senate to vote on GENIUS Act for crypto regulation 7.
• Trump signs bipartisan ‘Take It Down Act’ targeting revenge porn and AI deepfakes; new compliance rules for digital platforms 9.
• Trump to push $175B reconciliation bill in House, including tax relief and border funding 10.
• House GOP accelerates Medicaid work requirements to 2026–27; targets $700B in savings, faster phaseout of clean energy tax credits 14.
• Ibovespa sets third record high this week as US dollar softens post-US credit downgrade 15.
• Canada Post workers to strike Friday, risking mail and parcel disruptions across Canada 12.

Commentary

US traders face a cross-current of geopolitical and policy headlines. The DOJ’s probe into the Coinbase data breach and the $20M bounty highlight persistent security risks in crypto, with legal fallout possibly weighing on sentiment for US-listed exchanges 1. Meanwhile, Galaxy Digital ’s strong Nasdaq debut and pending Senate action on the GENIUS Act signal growing institutional interest and regulatory focus in the sector 7.

Global trade and inflation remain in focus. India’s offer to eliminate tariffs on US goods could provide a significant boost to US exporters if a deal is finalized before July, especially as reciprocal tariffs loom 4. However, the auto sector is feeling the pinch: Subaru’s $2,200 price hike on US models, widely attributed to Trump’s tariffs, points to ongoing cost pressures and potential knock-on effects for consumer inflation and discretionary spending 5.

Geopolitics remain a source of headline risk. The Houthis’ expanded blockade to Israel’s Haifa port and Israeli strikes on Yemeni ports increase shipping and energy market uncertainty, though the direct impact on US assets appears limited for now 2. In Eastern Europe, Trump’s reported progress on Ukraine cease-fire talks and his decision to delay new Russia sanctions may reduce near-term risk, but the situation remains fluid 38.

On the macro front, the Reserve Bank of Australia’s expected rate cut underscores diverging global monetary policy, with the AUD likely to remain under pressure 6. Emerging market flows are notable, with Brazil’s Ibovespa hitting new highs as the US dollar softens following the US credit rating downgrade 15. Domestically, the House GOP is advancing major fiscal and health policy changes, including accelerated Medicaid work requirements and tax relief, which could have medium-term implications for US fiscal dynamics and select equities 14.