Venezuela Prepares $240B Debt Disclosure

THE FINANCIAL TIMES -Venezuela is preparing to disclose a staggering $240B debt, surpassing earlier estimates of $150B to $200B, as it embarks on an unprecedented sovereign debt restructuring following the US expulsion of Nicolás Maduro.

Interim leader Delcy Rodríguez aims to finalize a creditor agreement by year-end, which would enable Venezuela to reintegrate into international markets after nearly a decade of isolation.

US investment bank Centerview Partners has been engaged to develop a plan for stabilizing the nation’s debt, with a detailed strategy to be presented in early July.

Additionally, a macroeconomic framework will be published soon, projecting the size of Venezuela's economy at approximately $100B, significantly reduced from $370B in 2012, resulting in a debt-to-GDP ratio exceeding 200%. -General CD Donahue, the top US army officer in Europe, is set to announce his early retirement, marking a significant move in Defense Secretary Pete Hegseth's purge of senior military leaders.

Respected for his role in supporting Ukraine against Russia, Donahue's ousting follows the dismissal of General Randy George and appears linked to broader changes within the Pentagon as pressure mounts on Europe regarding defense responsibilities.

Known for being the last US soldier to leave Afghanistan in 2021, Donahue's removal further intensifies concerns about the climate of fear and resentment among military ranks under Hegseth's command, which has been criticized for its handling of past military operations. -Qatar’s Prime Minister, Sheikh Mohammed bin Abdulrahman al-Thani, emphasized the importance of a hotline between the US and Iran to prevent disruptions by rogue actors during the Strait of Hormuz's reopening.

He stated this would counter "disinformation" and facilitate coordination as mines are cleared.

Sheikh Mohammed highlighted the risks of misinformation from entities like Iran’s Revolutionary Guards, which could threaten shipping vessels.

He also acknowledged the potential for sabotage from factions opposed to the agreement.

The reopening of the strait is crucial for the interim deal and aims to address the global energy crisis. -Berlin has canceled a major multiBillion-euro project to build six F126 frigates, marking a significant setback in its defense procurement efforts.

Defense Minister Boris Pistorius cited substantial delays, anticipated cost increases, and the complications associated with changing contractors as reasons for the decision.

As a result, shares in potential contractor Rheinmetall dropped 12%.

The German Ministry of Defense now plans to procure eight Meko frigates instead, emphasizing the importance of sea-based anti-submarine warfare within NATO.

Approximately €2 B in costs related to the F126 program will likely be written off, hindering Germany's ambitions to strengthen its military and security framework amid a planned €780 B military overhaul by 2030. -Every New Year, North Korea’s elite gathers at Kumsusan Palace of the Sun to honor the embalmed bodies of Kim Il Sung and Kim Jong Il, with Kim Jong Un typically at the center.

This year's ritual featured his daughter, Kim Ju Ae, positioned prominently, indicating a potential introduction of her as an heir.

At 13 or 14, Kim Ju Ae has been present at key events, suggesting a strategy aimed at future succession.

Experts believe Kim Jong Un is preparing her for leadership, prompted by his own tumultuous ascent to power in the late 2000s and early 2010s. -A Big Tech critic, Alex Bores, narrowly lost a Democratic primary in Manhattan, a significant win for the pro-AI lobby.

Bores, who championed AI safety legislation and amassed $18M in support for stricter AI regulations, was outmatched by Micah Lasher, who benefitted from over $10M in funding from Mike Bloomberg.

This race, the most expensive in the district, signifies a proxy battle over AI regulation.

Additionally, in New York, socialist mayor Zohran Mamdani's candidates achieved victories, notably Brad Lander, who defeated incumbent Dan Goldman in a contest focused on Israel issues. - The Euro has dropped to its lowest level in over a year against the dollar, now at $1.135, down 2.6% this month.

This decline is attributed to falling oil prices and a slowdown in the Eurozone economy, which reduce the likelihood of further interest rate hikes by the European Central Bank (ECB).

Economic data indicate a negative impact from previous high energy prices, prompting investors to hesitate in resuming bullish euro positions.

According to MUFG's Lee Hardman, the mix of weaker Eurozone growth and declining energy prices alleviates rate hike pressures on the ECB.

Earlier this year, the euro had gained strength due to reduced investor enthusiasm for the dollar amid U.S. political uncertainties. -In February 2013, a compliance officer at HSBC flagged suspicious activity related to an account held by Forry Associates, controlled by Raja Salameh, brother of Lebanon's central bank governor, Riad Salameh.

Despite concerns, senior managers allowed the continued relationship with the company.

This decision has led HSBC into a significant money-laundering scandal linked to the embezzlement of hundreds of millions from the Lebanese central bank.

French prosecutors have charged HSBC’s Swiss Private Bank with facilitating these embezzlements, with allegations of $330 million transferred to Forry Associates and further transactions tracing back to Riad Salameh’s personal account.

Investigations by Swiss authorities revealed serious breaches of anti-money laundering obligations by HSBC, which failed to act on numerous red flags in relation to politically exposed persons. - Hyundai Motor workers in South Korea are set to strike after 87% of the 40,000 union members voted in favor, opposing plans to introduce humanoid robots, specifically the Atlas model from Boston Dynamics, into their factories.

The Korean Metal Workers’ Union demands more control over AI and automation's deployment, e