Jax Morning Brief — CPI Hits 4.2%, Iran Strikes Enter Day Two, SpaceX Prices Tonight

Jax Morning Brief — CPI Hits 4.2%, Iran Strikes Enter Day Two, SpaceX Prices Tonight

Good morning. It's Thursday, June 11th. This is The Morning Brief. I'm Jenny. ANDREW: And I'm Andrew. JENNY: Inflation hit a three-year high in May. Headline CPI ran 4.2 percent, almost entirely on energy, and stocks dropped hard. The US and Iran are now into a second night of strikes. ANDREW: And after the close tonight, SpaceX prices what will be the largest IPO in American history — about 75 billion dollars raised at a 1.75 trillion dollar valuation. We'll get to what that says about the broader AI trade. JENNY: Let's get into it. ANDREW: A quick look at the markets. The S and P 500 closed at 7,266, down 1.6 percent. The Dow dropped 1.9 percent to 49,918. The Nasdaq fell almost 2 percent to 25,169. That was the worst session in weeks, driven by a hotter than expected inflation print and another round of US-Iran strikes. The ten-year Treasury yield is sitting at 4.55 percent, a two-week high. And the thirty-year fixed mortgage rate is tracking around 6.55 percent according to Bankrate. Energy did most of the damage in the CPI report, and energy is what the bond market is worried about right now. ANDREW: Jenny, the macro is the story today, so let's start there. The Bureau of Labor Statistics released May CPI at 8:30 yesterday morning. Headline came in at 4.2 percent year over year. That is the hottest reading since 2023. Month over month, prices rose half a percent. Energy alone was up 3.9 percent in May, and according to the BLS, energy accounted for more than 60 percent of the entire monthly increase. JENNY: But core CPI, the number the Fed actually cares about, that was milder, right? ANDREW: That is the wrinkle. Core CPI, which strips out food and energy, rose just 0.2 percent on the month — that actually undershot forecasts. Over twelve months, core is at 2.9 percent. So if you squint, the underlying disinflation story is still intact. The headline is the energy shock from the Iran conflict. The real question is whether that energy shock seeps into the rest of the basket — into airline tickets, into delivery costs, into anything that uses fuel. JENNY: And the bond market clearly does not want to take that bet. ANDREW: It does not. The ten-year sold off two basis points to 4.55. Fed funds futures now price a 98 percent chance that Chair Warsh holds at next week's meeting. The dot plot is the real event — that is Tuesday and Wednesday, Warsh's first meeting as chair, and traders are watching whether the dots push the first 2026 rate cut into 2027. ANDREW: Speaking of the energy shock — the Iran story has now run a second day. CENTCOM launched a second round of self-defense strikes at 5:15 yesterday afternoon Eastern Time, hitting multiple targets inside Iran. That came after Iran's Revolutionary Guard claimed responsibility for drone attacks on the US Fifth Fleet in Bahrain, on the Ali Al Salem airbase in Kuwait, and a long-range missile strike on Azraq in Jordan. Brent crude was at 94 dollars a barrel as of yesterday morning, and the Strait of Hormuz is, in the words of one wire service, near-totally closed — though there is some oil still moving. JENNY: And the president's posture this morning? ANDREW: Trump posted that Iran will, in his words, pay the price for taking too long to negotiate, and he has signaled more strikes are possible. The Pentagon has not yet formally characterized the attacks on Bahrain, Kuwait, and Jordan as acts of war. That language matters, because it shapes the legal authority for whatever comes next. ANDREW: One more from Washington. Trump signed the Secure America Act yesterday. That is the 70 billion dollar ICE and Border Patrol funding bill that had been stuck in Congress for nearly six months. The House passed it 214 to 212 Tuesday night. The package funds ICE at 38 billion dollars, the Border Patrol at 26 billion, with another 5 billion in contingency, and it runs through January 2029 — essentially the rest of the president's term. It ends a 115-day standoff that had threatened a partial shutdown of enforcement operations. JENNY: Andrew, that connects to mortgages, doesn't it — what's happening on the home lending side after that print? ANDREW: Let's go there. The headline for buyers and borrowers is that the thirty-year fixed is now tracking around 6.55 percent. Rates have been bumping against 6.5 for several weeks, and yesterday's bond market reaction means that ceiling is being tested in real time. Housing economists are now pretty unanimous that rates will stay above 6 percent for the rest of the year. JENNY: So is purchase demand just dead, or is something else going on? ANDREW: That is the interesting part. The Mortgage Bankers Association reported yesterday morning that mortgage applications for the week ending June 5 jumped 10.8 percent week over week. The refinance index was up 15 percent. And here is the strange piece — the contract rate on a conforming thirty-year actually rose during that week, from 6.57 to 6.60. So borrowers were rushing to lock in ahead of the CPI print. People saw the energy spike coming, watched Brent climb, and moved early. The refi share is back to 40 percent of total applications. That is the highest it has been in months. JENNY: That feels like a one-week story though, not a turn in the trend. ANDREW: It is. This is a behavioral spike, not a rate-trend reversal. If anyone was on the fence about locking, that decision got a lot easier yesterday. The question for the industry now is whether next week's FOMC delivers any forward-guidance change. Right now the market is pricing zero cuts before the fourth quarter at the earliest. ANDREW: Jenny, there is a very big AI story breaking today — over to you. JENNY: There is. Tonight after the closing bell, SpaceX will price its IPO. By a wide margin, this is the largest public offering in American history. Fixed price, 135 dollars a share, 555.6 million shares sold, raising about 75 billion dollars at a 1.75 trillion dollar valuation. The stock debuts tomorrow morning on the Nasdaq under the ticker S-P-C-X. About 30 percent of the float is reserved for retail buyers. ANDREW: 1.75 trillion is, for context, larger than the GDP of most countries on earth. JENNY: It is. And SpaceX is going public into a CPI-shocked, Iran-rattled market, which is exactly why a lot of bankers are watching tonight's pricing so carefully. They skipped the usual roadshow range and went straight to a fixed price. That is unusual at this scale — it strips out the price discovery you would normally get. If demand fades because of the macro tape, there is no built-in cushion. ANDREW: And there is a context point that ties this back to the broader AI trade. JENNY: Yes — SpaceX is the first of three frontier-tech IPOs queued up for the back half of the year. Anthropic filed a confidential S-1 on June 1 at a 965 billion dollar private valuation. OpenAI filed its own confidential S-1 last Monday, June 8, at 852 billion. Bloomberg has been framing the three together as a third and fourth quarter stress test for the entire AI valuation framework. SpaceX is the warm-up act. ANDREW: And the question with OpenAI specifically is whether the financials can clear a public-market bar. JENNY: That is the big one. OpenAI was generating about 2 billion dollars a month in revenue as of March — call it 24 billion annualized. But the company also lost roughly a dollar 22 for every dollar of revenue last quarter. The cost of training and serving these models is brutal. Private investors have given OpenAI a long runway on that math. Public investors typically do not. ANDREW: One quick AI policy note before you move on. JENNY: Yeah — both OpenAI and Anthropic spent the last week backing state-level AI bills in California, New York, and Illinois, because federal AI legislation is just not moving. They are choosing to shape state law where they can rather than wait on Congress. Three blue-state legislatures advanced bills the labs endorsed. Worth watching, because state-by-state AI regulation is exactly the patchwork the labs have been telling Congress they want to avoid. ANDREW: Jenny, speaking of closer to home — what is happening in Jacksonville? JENNY: Weather-wise, Jacksonville is looking at a high of 87 degrees and a low of 73 today, partly cloudy, with the usual June chance of an afternoon thunderstorm. JENNY: Two local items. The City Emergency Preparedness Division is leaning hard into hurricane prep this week. Atlantic hurricane season is underway, the city is urging residents to download the JaxReady app and to register for the Special Medical Needs Registry if anyone in the household relies on power-dependent equipment. Last weekend, Farm Share Florida and a partner organization distributed free emergency supplies in town. The reason this matters specifically this year — the National Hurricane Center is forecasting an above-average season, and Jacksonville's exposure has only grown with the westside development push. ANDREW: Any update on the JEA investigation? JENNY: Carrying forward. The big date there is June 22 — that is when CEO Vickie Cavey is scheduled to testify in front of the City Council Special Investigative Committee. Chief Administrative Officer Jody Brooks and former legal counsel Regina Ross testified Monday. Brooks pushed back hard against the anonymous workplace-culture allegations and confirmed that roughly 250 commercial customers are now under review on a capacity-fee issue. The committee has until June 30 to issue findings and recommendations. JENNY: And one Jaguars note — mandatory minicamp wraps today at Miller Electric Center. The headline storyline all week has been Travis Hunter. He still has not taken a physical practice rep — he is coming back from the LCL tear last October — but he has been in every huddle, holding the play sheet. Head coach Liam Coen told reporters Tuesday that Hunter clocked 22.6 miles per hour in pre-practice sprints. The team's working target is full participation by training camp in late July. JENNY: Andrew, take us out. ANDREW: Before we let you go, one thing to watch today: SpaceX pricing, after the market closes. The price itself is fixed at 135 — that is not a surprise. The signal is the indication-of-interest data the underwriters release, and then the open print tomorrow morning on the Nasdaq. If S-P-C-X trades up out of the gate, it tells you the AI-adjacent risk trade has absorbed the CPI shock and the Iran headlines. If it breaks issue, that is a much harder tape for Anthropic and OpenAI's bankers to read — and a much harder one for the broader equity market to ignore heading into next week's Fed meeting. JENNY: That is your Morning Brief for Thursday. Have a great Thursday. ANDREW: We'll see you tomorrow.

Jax Morning Brief — US Strikes Iran After Hormuz Helicopter Downing, ICE Bill Passes, CPI at 8:30

Good morning. It's Wednesday, June 10th. This is The Morning Brief. I'm Jenny. ANDREW: And I'm Andrew. JENNY: A short-lived pause in the Middle East shattered yesterday afternoon. An Iranian Shahed drone hit a US Apache helicopter over the Strait of Hormuz, the pilots are safe, and at five o'clock Eastern, US fighter jets launched what Central Command is calling self-defense strikes against Iranian air defense sites. ANDREW: And in Washington, the House passed a seventy billion dollar funding package for ICE and Border Patrol 214 to 212 — ending a 115-day standoff. The May CPI print drops at 8:30 this morning. We'll get to all of it. JENNY: Let's get into it. ANDREW: A quick look at the markets. The S and P 500 closed at 7,386.65, down about a quarter percent. The Dow gained 86 points to finish at 50,872. The Nasdaq was the laggard, down nearly a percent, closing at 25,678 — though that was a steep recovery from intraday lows of around three and a half percent after Trump teased the Iran response. The ten-year Treasury yield is sitting near 4.57 percent, the highest in about two weeks, and the thirty-year fixed mortgage rate climbed to 6.68 percent on Mortgage News Daily's daily index — the third-highest reading in nine months. ANDREW: Let's start in the Middle East, because this is now a very different story than the one we ended yesterday with. Iran's so-called suspension of attacks on Israel — the one announced Monday afternoon — held for about 36 hours. Yesterday afternoon, an Iranian Shahed drone struck a US Apache helicopter patrolling over the Strait of Hormuz. Both pilots are safe. President Trump went on Truth Social within the hour saying the US "must respond," and at 5 PM Eastern, Central Command confirmed self-defense strikes against Iranian air defense sites, ground control stations, and surveillance radar near the Strait, using precision munitions from fighter jets. JENNY: So this is the first direct US-Iran kinetic exchange since the spring. What's the scope here — is this contained to the Strait, or is this widening? ANDREW: That's the question this morning. Iran's retaliation overnight, according to Bloomberg and NPR reporting, included strikes on US-aligned positions in Bahrain, Kuwait, and Jordan. That's three more countries pulled into this in a matter of hours. The Pentagon hasn't characterized those attacks publicly yet. What we know is that the Iran-Israel pause we covered yesterday is effectively done, and the framework Trump posted about — "total victory coming, negotiations continuing" — that framework is now gone. Brent crude was already above 94 dollars at the close yesterday. Watch the energy print at the open. JENNY: And the Strait of Hormuz piece matters because? ANDREW: Roughly a fifth of global oil supply moves through Hormuz. Iran cannot close it without inviting overwhelming response, but it can make insurance underwriters nervous, and that alone moves spot crude. If you see Brent push past 100 dollars this morning, that feeds straight into the CPI conversation we'll have in the next beat. JENNY: And there's a mortgage-market angle to all of this, but let's hold that for the next beat. The other big story out of Washington — the House finally passed ICE funding. ANDREW: 214 to 212. Three Republicans voted no, every Democrat voted no. The bill funds Immigration and Customs Enforcement and Customs and Border Protection through fiscal year 2029 — essentially the rest of Trump's term — at last year's operating budget plus inflation. As we've been tracking, the holdup was the 1.8 billion dollar anti-weaponization fund the White House wanted attached. Acting Attorney General Todd Blanche told lawmakers DOJ was "not moving forward" with it, Speaker Johnson stripped it out, and that's what cleared the math. Bill goes to Trump's desk today — about ten days past his June 1st deadline, but it gets there. JENNY: And the markets curtain-raiser for the day — CPI. ANDREW: 8:30 Eastern, the Bureau of Labor Statistics releases May CPI. The April print came in hot at 3.8 percent year-over-year, and the Cleveland Fed's nowcast has been drifting higher. The May reference window also captures the early-stage Iran energy spike. If the headline number prints above 3.2 percent — which is well within the plausible range — that essentially closes the door on any June rate cut and starts a conversation the Fed has not had this cycle, which is whether the next move could be a hike. Chair Warsh is in pre-FOMC blackout through June 17th, so the market read happens in real time off the print itself. JENNY: Andrew, that's a perfect bridge — let's stay with you on home lending. ANDREW: Right, and this is where the Iran story stops being foreign policy and starts hitting people's closing costs. The thirty-year fixed jumped to 6.68 percent on Mortgage News Daily's daily index as of yesterday — that is the highest reading we've seen since December. The ten-year Treasury, which is what mortgages actually track, is bumping up against 4.60 percent. If the ten-year breaks 4.60 on a hot CPI today, the mortgage daily index is likely heading toward 6.75, possibly 6.80 by the end of the week, and the seven-percent psychological line comes back into play. JENNY: So practical translation for someone trying to close on a house right now — what changes between Monday and today? ANDREW: Today's lock looks meaningfully worse than Monday's. On a 400,000-dollar loan, the move from roughly 6.5 percent two weeks ago to 6.68 today adds about 50 dollars a month — call it 18,000 dollars over the life of the loan. The Mortgage Bankers Association's weekly survey, for the week ending May 29th, showed purchase applications down three percent and refi down two percent. Purchase activity is at its slowest weekly pace since April. Refi applications are at the weakest level since June of last year. The hesitation isn't speculative — it's showing up in the data. JENNY: And the servicing side — you flagged the FHA squeeze last week. ANDREW: It's still grinding. The FHA mortgagee letter from February has tightened loss-mitigation timelines on servicers, and that's showing up in the Q1 foreclosure numbers — about 119,000 filings nationally, up 26 percent year-over-year, the highest first-quarter total in six years. That's not panic territory — we're nowhere near 2010 — but it is the clearest signal yet that the post-COVID forbearance cushion is gone. Default-servicing margins are the canary, and Q2 earnings out in late July will tell us how stressed those operations actually are. ANDREW: Jenny, over to you on AI. JENNY: Thanks Andrew. The story I want to start with is a number that genuinely stopped me — Big Tech's combined AI capex projection for 2026 has now reached 725 billion dollars. Alphabet alone raised its full-year guidance to between 180 and 190 billion. Meta took its range up to 125 to 145 billion. And the question on Wall Street had been: is any of this actually generating returns? ANDREW: And is it? JENNY: Google Cloud's most recent quarter is the strongest data point yet. Revenue grew 63 percent year-over-year to 20 billion dollars — that growth rate more than doubled. Paid monthly active users of Gemini Enterprise were up 40 percent quarter-over-quarter, with new deals at Bosch, Mars, and Merck. And the enterprise cloud backlog hit 462 billion dollars — that's the contracted future revenue — which nearly doubled in a single quarter. That is the first hard evidence that hyperscaler AI spend is converting to bookings at scale. ANDREW: And on the IPO side — Anthropic and OpenAI are both in the queue now. JENNY: They are. Anthropic filed confidentially June 1st, OpenAI filed about a week later. Both are pointed at fall public debuts. Anthropic's last private valuation was 965 billion, OpenAI's was 852 billion in March. Combined with SpaceX, which prices tomorrow night at a 1.77-trillion-dollar valuation, we're looking at three of the largest public offerings in US history landing inside a single quarter. Bloomberg is calling it a stress test of public-market appetite for the AI trade. ANDREW: And there's the AI coding angle — Microsoft and Google trying to catch the frontier labs. JENNY: This is the underappreciated competitive front. CNBC had a piece earlier this month framing it as "absolutely critical" for Microsoft and Google to get into AI coding, which has become Anthropic's and OpenAI's strongest revenue line. Microsoft is reportedly weaving its agent into the Windows 12 taskbar and File Explorer with system-level access. Google is making the same push through Gemini Code Assist. The question is whether the hyperscalers can use distribution to close the model gap — or whether they end up paying Anthropic and OpenAI to power their own products. The IPO disclosures will give us our first real look at that revenue mix. JENNY: And speaking of Jacksonville, let me transition to the local beat. Weather-wise, Jacksonville is looking at 86 degrees and partly sunny today, with an overnight low around 73. Standard early-June pattern — no afternoon storms expected. JENNY: City Council last night approved the Yellow Water Road rezoning we've been tracking. The vote cleared both ordinances — 2026-0289 on the land-use change, and 2026-0290 on the PUD zoning. That opens 112.5 acres about a mile north of Normandy Boulevard to a 478-home residential development by Partridge Hill Capital — managed by Andrew Hayman and Morgan McMasters. The Jax Daily Record confirms the PUD allows up to 550 homes total if the developer chooses to scale up. ANDREW: Any meaningful pushback on traffic — that area is already strained. JENNY: Action News Jax reported traffic concerns dominated public comment, but the project moved through 6-to-nothing at LUZ committee on June 2nd, and the full council followed through. Worth noting — this is the second large West Jacksonville approval inside a month. Watch whether the property-tax exemption amendment, which the council auditor projects costs Jacksonville more than 300 million a year by fiscal 29, surfaces in upcoming land-use debates as the city models out lost revenue versus growth. JENNY: Two more locally. The JEA investigative committee heard testimony Monday from Chief Administrative Officer Jody Brooks and former legal counsel Regina Ross. The headline takeaway from News4Jax — Brooks confirmed she has not personally witnessed CEO Vickie Cavey yelling or pounding fists, contradicting the anonymous workplace-culture allegations driving part of the investigation. Brooks did confirm Cavey cried after an employee was injured. Cavey herself testifies June 22nd. ANDREW: That changes the political posture going in to the Cavey hearing. JENNY: It does. And on the Jaguars — mandatory minicamp continues this morning at the Miller Electric Center. Today is the public-practice day, 8:40 to 10:55, free tickets. The story coming out of yesterday's day-one practice is Travis Hunter. He's not taking physical reps yet, still rehabbing the LCL injury from last season, but the team clocked him at 22.6 miles per hour ahead of practice. Head coach Liam Coen said Hunter is still doing mental reps with the corners and receivers. GM target is full participation by training camp in late July. ANDREW: Before we let you go, one thing to watch today: the May CPI print at 8:30 Eastern. The number to focus on is 3.2 percent on the headline. Above that, and the June 16th-17th FOMC meeting changes character — you'll see the ten-year break 4.60, mortgage rates climb toward seven, and rate-cut bets for September move out to December or beyond. Below 3.0, and a lot of the post-Iran energy concern gets discounted. Either way, the print sets the mortgage market for the rest of the month, and SpaceX prices its IPO tomorrow night into whatever rate environment this CPI creates. JENNY: That's your Morning Brief for Wednesday. Have a great day. ANDREW: We'll see you tomorrow.

Jax Morning Brief — Iran-Israel Pause, SpaceX Gray Market Opens, Mortgage Rates Pop

Good morning. It's Tuesday, June 9th, 2026. This is The Morning Brief. I'm Jenny. ANDREW: And I'm Andrew. JENNY: A fragile pause this morning in the Middle East. Iran says it has suspended its attacks on Israel after a one-night exchange, but the warning labels are doing a lot of work. ANDREW: And the largest IPO in U.S. history starts trading in the gray market today. SpaceX is now 48 hours from its Nasdaq debut, and the first real demand read lands this morning. JENNY: Let's get into it. ANDREW: A quick look at the markets. The S and P 500 closed Monday at 7,406, up about three tenths of a percent. The Nasdaq added nine tenths to close at 25,930, a small step back toward Friday's losses. The Dow lagged, off about a tenth of a percent at 50,786. The ten-year Treasury yield is sitting near 4.55 percent, and the thirty-year fixed mortgage rate is tracking at 6.68 percent according to Mortgage News Daily. That's the highest daily print since December. Stocks held up Monday largely because chip names recovered some of Friday's bloodbath after Iran said it was halting attacks. ANDREW: Which is the right place to start. Jenny, I'll take this one and then hand it back to you. ANDREW: Updating the story we led with yesterday. Iran's military said Monday afternoon it had suspended operations against Israel, and Prime Minister Netanyahu confirmed Israel had stopped its strikes on Iran, though he pointedly avoided calling it a ceasefire. This follows the first direct missile exchange since the April truce. Roughly thirty Iranian ballistic missiles fired overnight, an Israeli strike on a petrochemical plant in southwest Iran in response. JENNY: So is this actually a pause, or just a breather while both sides reload? ANDREW: That's the question, and the conditional language tells you everything. Iran said it will resume attacks if Israeli operations in southern Lebanon continue. Netanyahu refused to use the word ceasefire. President Trump posted Monday that the U.S. is close to declaring, quote, total victory, and that final negotiations are proceeding. The market took the pause at face value. Brent crude, which spiked above $98 a barrel intraday Monday, eased back to about $94 by the close. But the underlying framework Trump described over the weekend, a 60-day extension, Hormuz reopening, Iran selling oil freely, is still very much in doubt. The petrochemical strike on the Mahshahr complex is the part nobody is talking about publicly, but it materially raises Iran's domestic political cost of accepting any deal. JENNY: And what does this do to the CPI print on Wednesday? ANDREW: It absolutely puts it back in play. If energy stays elevated through the May data window, headline inflation could come in hotter than the roughly 3 percent consensus. The Cleveland Fed nowcast was already drifting up. We'll get to that in the close. ANDREW: One more on the national desk. The House reconciliation bill is now expected to clear this week, and the centerpiece controversy looks resolved. Acting Attorney General Todd Blanche told lawmakers the Justice Department is, quote, not moving forward with the proposed $1.8 billion anti-weaponization fund. Speaker Mike Johnson told the president directly that the fund made the math impossible. Without it, Johnson has a path to passage on the $69.5 billion ICE and CBP package the Senate sent over last Friday. Trump's June 1 deadline is already gone, but the bill should be on his desk by Friday. JENNY: That's a big climbdown on the DOJ fund piece. ANDREW: It is. Whether the White House revives it through some other vehicle is the open question. Jenny, over to you for AI. JENNY: Thanks, Andrew. The story we've been tracking on SpaceX hits its first real market test today. The gray market opens this morning, which is the first honest read on institutional demand before Wednesday's formal pricing. SpaceX has set a fixed offering price of $135 per share. That values the company at roughly $1.77 trillion, which would make it the seventh-largest U.S. company by market cap on day one, larger than Tesla. The Nasdaq debut is Thursday under the ticker SPCX. ANDREW: A fixed price, not a range. That's unusual for a deal this size. JENNY: It is. Most large IPOs use a range to gauge demand sensitivity. SpaceX skipped that step after weeks of testing-the-waters meetings, basically signaling they already know what the book looks like. And they reserved 30 percent of the float for retail, which is about three times normal. There's a retail event tomorrow for about fifteen hundred investors. The thing to watch on the gray market this morning is whether shares trade meaningfully above or below $135, because that's the first uncensored signal of where institutions actually value this. ANDREW: And if it trades below? That would be a problem at a $1.77 trillion valuation. JENNY: It would. The whole reason for the fixed price approach is to project confidence. A weak gray market would force some uncomfortable conversations between now and Wednesday's close. JENNY: Quick second story on the AI beat. The enterprise services build-out we flagged last month is starting to look like the dominant frame for this cycle. Both Anthropic and OpenAI now have multibillion-dollar joint ventures purpose-built to embed engineers inside customer companies. Anthropic's venture with Blackstone, Hellman and Friedman, and Goldman Sachs raised $1.5 billion. OpenAI's deployment company raised $4 billion led by TPG. The bet on both sides is that the bottleneck in enterprise AI is no longer the model. It's the implementation. ANDREW: Which is interesting, because that's also a bet against the traditional consulting industry. JENNY: Exactly. They are squarely targeting the Accenture, Deloitte, McKinsey lane. The pitch is that the consulting firms can write a deck about AI transformation, but they cannot put forward-deployed engineers in your finance team for nine months. That's the gap these joint ventures are trying to fill, and the early customer signal has been heavily weighted toward financial services. Banks, insurers, and private-equity-owned portfolio companies are the named launch partners on the Anthropic side. ANDREW: Which explains the Goldman and Blackstone involvement. They're already distribution channels. JENNY: Exactly right. Andrew, what's happening on the mortgage side? ANDREW: Rates are the story. The Mortgage News Daily index pushed to 6.68 percent Monday, the highest daily print since December. That move is almost entirely a delayed reaction to Friday's hot jobs report. Payrolls came in at 172,000 versus expectations near 85,000. The ten-year Treasury jumped to about 4.55 percent, and lender quotes are now firmly in the high sixes. JENNY: How does that hit borrowers who were trying to close this week? ANDREW: It hits hard. A buyer locking today on a $400,000 loan is looking at a monthly payment roughly $80 to $100 higher than someone who locked two weeks ago. And the MBA's weekly survey out last Wednesday already showed the strain. Purchase applications were at their slowest pace since April. Refinance activity hit its weakest level since last June. The refi window, which had cracked open in May when rates briefly touched 6.4, has essentially slammed shut. JENNY: What about borrowers already in trouble? You mentioned foreclosure data last week. ANDREW: That trend is the harder problem. First-quarter foreclosure filings ran about 119,000, up 26 percent year-over-year, a six-year high according to National Mortgage News. And the FHA's February mortgagee letter is still squeezing servicer margins on the loss-mitigation side. The CFPB pullback under the new administration is shifting more of the consumer-protection burden to state regulators and the FHA itself, and the FHA doesn't have the bandwidth. JENNY: So practical takeaway for someone buying right now? ANDREW: If you have a rate lock that expires this week, extend it if you can. If you're shopping, expect quotes to bounce around with every Treasury auction and every Trump Truth Social post on Iran. Hedge desks at the big lenders widened their spreads overnight, which is why the daily index moved more than the underlying Treasury did. Jenny, speaking of Jacksonville, what's the city looking at today? JENNY: Weather-wise, Jacksonville is looking at a high near 87 degrees and partly sunny today, with an east wind around 5 to 14 miles an hour. The June burn ban remains in effect. JENNY: City Council meets tonight, and the big agenda item is the final vote on the Yellow Water Road rezoning. That's the 478-home subdivision on 112 acres in West Jacksonville, just north of Normandy Boulevard. The Land Use and Zoning committee approved it 6-0 last week. The developer is Partridge Hill Capital, and the underlying PUD actually allows for up to 550 homes, though current plans show 478. Worth watching whether anyone surfaces the property-tax amendment in the debate, because more rooftops at the same time the homestead exemption is jumping is a real fiscal puzzle for the city. ANDREW: That homestead piece is a $300 million-a-year hole by FY29 if I'm remembering right. JENNY: That's the Council Auditor's estimate, yes. Roughly 17 percent of general fund revenue at full phase-in. JENNY: Second story. The JEA Special Investigative Committee heard testimony Monday from Chief Administrative Officer Jody Brooks and former JEA legal counsel Regina Ross. The committee met twice, eleven a.m. and one p.m. Brooks was specifically asked about JEA's nonrefundable down payment to GE Vernova for a combined-cycle natural gas turbine at the Northside Generation Station. That decision is tied to the $1.57 billion natural gas plant whose regulatory applications were filed June 4th. CEO Vickie Cavey is scheduled to testify June 22nd, and the parallel state-level investigation by the statewide prosecutor and the Fourth Judicial Circuit State Attorney is still pulling records on the utility's lobbying contracts with Ballard Partners. ANDREW: Is the committee getting closer to recommending charter changes? JENNY: That's the direction this is heading. Workplace culture, water capacity fees, and now generation-asset decisions are all getting woven into the same probe. The statewide prosecutor subpoena is still active. JENNY: Last one. Jaguars mandatory minicamp opens today at Miller Electric Center, runs through Thursday. The big watch is Travis Hunter, who is still working his way back from last season's knee injury. GM James Gladstone has said the plan is for Hunter to be at, quote, full tick by training camp in late July. Expect a limited role this week. Wednesday's session is open to the public from 8:40 to 10:55 a.m. Tickets are free. ANDREW: Good to know. Hunter at full tick by camp would settle a lot of questions about that wide receiver room. JENNY: It would. Andrew, take us out. ANDREW: Before we let you go, one thing to watch tomorrow morning. The Bureau of Labor Statistics releases the May Consumer Price Index at 8:30 a.m. Eastern. Consensus is for headline inflation around 3 percent, but the Cleveland Fed nowcast has been drifting higher, and last month's Iran-driven energy spike falls inside the May reference window. A print above 3.2 percent would close the door on any June rate cut and reopen serious conversation about a hike at the June 16-17 FOMC meeting. The ten-year Treasury at 4.55 percent already has some of that priced in. Watch the 4.60 level on the ten-year. If it breaks above that on the print, mortgage rates push toward 7, and the housing market enters a different conversation. JENNY: That's your Morning Brief for Tuesday. Have a great day. ANDREW: We'll see you tomorrow.

Jax Morning Brief — Iran-Israel Strikes Reignite War Fears, Tech Routed, JEA Testimony Today

Good morning, and welcome back from the weekend. It's Monday, June 8th, 2026. This is The Morning Brief. I'm Jenny. ANDREW: And I'm Andrew. JENNY: Iran launched roughly 20 ballistic missiles at Israel overnight, the first direct strike since April's ceasefire, after Israeli warplanes hit Hezbollah strongholds in Beirut on Sunday. President Trump is demanding both sides stop shooting. ANDREW: And here at home, Wall Street had its worst day of the year Friday. The Nasdaq fell more than four percent on a hot jobs print and a roughly one-trillion-dollar wipeout in chip stocks. We'll walk you through what it all means for rates, mortgages, and the Fed meeting next week. JENNY: Let's get into it. ANDREW: A quick look at the markets. The S and P 500 closed Friday at 7,383, down 2.6 percent, the worst session of 2026. The Dow fell 695 points, or 1.3 percent, to 50,866. The Nasdaq dropped 4.2 percent to 25,709, its worst day since April of last year, as semiconductor names took the brunt of the selling. The ten-year Treasury yield jumped to 4.55 percent on Friday's jobs print, and the thirty-year fixed mortgage rate is tracking near 6.5 percent according to Mortgage News Daily. Brent crude is up more than four percent in early trade on the Iran-Israel escalation, sitting just under 97 dollars a barrel. Stock futures are mixed this morning, with the Nasdaq up about half a percent and the Dow slightly negative. ANDREW: Two things shaped your weekend if you were off the grid. One, the Middle East ceasefire is unraveling fast, with Iran, Israel, and Hezbollah all trading fire over 48 hours. Two, Friday's jobs report came in hot, and the market reaction yanked rate-cut hopes off the table. JENNY: That makes the national desk the right place to start. Andrew, over to you. ANDREW: So let's start with what happened in the Middle East over the weekend, because it is genuinely dangerous. The short version is that the ceasefire President Trump brokered on June 1st between Israel and Lebanon is now effectively in tatters. On Sunday afternoon, Israeli aircraft hit Hezbollah's stronghold in Dahiyeh, in Beirut's southern suburbs. Lebanon's national news agency says at least two civilians were killed and more than ten wounded. Then late last night, Iran responded directly, firing at least 20 ballistic missiles into Israel. Most were intercepted, but per NPR's tally across the recent exchanges, 24 people are dead and more than 7,000 have been injured. JENNY: And this is the first time Iran has fired directly on Israel since the April ceasefire, right? How big a step is that? ANDREW: It is a major step. Iran spent April and May letting Hezbollah and the Houthis carry the fight. Direct fire from Iranian territory is what almost dragged the United States into the war back in February. Trump posted on Truth Social late last night demanding both sides, quote, "immediately stop shooting," and then the Israeli air force struck a petrochemical plant in southwest Iran early this morning. So the de-escalation script Trump was running for the past week has flipped into open exchange overnight. JENNY: What does that mean for the nuclear framework deal that was supposed to come this week? ANDREW: That is the second piece. Trump told reporters on Sunday the United States and Iran are, quote, "very close" to signing the framework, and he is pushing for Iran to physically destroy its highly enriched uranium as part of the agreement. But after this weekend's exchange, that timeline is now seriously in doubt. Watch oil here. Brent jumped more than four percent overnight, and a sustained move above 100 dollars a barrel would feed straight into U S gas prices and the inflation print on Wednesday. ANDREW: Closer to home, the House returns to Washington today facing what Axios is calling Speaker Johnson's, quote, "brutal June." The Senate's 69.5 billion dollar ICE and Border Patrol reconciliation bill passed 52 to 47 on Friday. Johnson can lose only two Republican votes, and the so-called anti-weaponization fund for the Justice Department, about 1.8 billion dollars, is the flashpoint. Conservatives want it stripped. If they force changes, the bill heads back to the Senate, and Trump's already-missed June 1st deadline keeps slipping further. ANDREW: And on the data side, Friday's May jobs report blew past expectations. Payrolls came in at roughly 172,000 versus consensus around 85,000. Unemployment held at 4.3 percent. The market reaction tells the story. The ten-year yield jumped back to 4.55 percent, futures pricing for a June rate cut effectively collapsed, and odds of a Fed hike later this year actually moved up. Fed Chair Kevin Warsh is in his pre-meeting blackout window now, and he gave no signal before going dark. JENNY: So basically the Fed gets the worst possible setup heading into next week, a hot jobs print and a fresh geopolitical oil shock. ANDREW: That is exactly right. And we get the May Consumer Price Index on Wednesday morning, which is now the most important data point on the calendar. JENNY: One more on the international side before we move on. The Florida AG's lawsuit against OpenAI and Sam Altman personally, filed June 1st, is still moving forward in the background. Eighty-three pages, six counts including fraud and public nuisance, cites two Florida deaths. We're watching whether California or New York attorneys general follow with their own suits this week. ANDREW: That personal-liability angle against Altman is the part that has every other lab's general counsel taking notes. JENNY: Andrew, stay with us. Let's pivot to what all of this means for the mortgage market. ANDREW: Yeah, the rate story is grim if you were hoping for relief. Freddie Mac's weekly survey on Thursday came in at 6.48 percent, the first weekly decline in six weeks. But that survey was collected before Friday's jobs print. Mortgage News Daily's daily index is tracking near 6.5 percent this morning, and given the ten-year jumped a dozen basis points on Friday alone, the practical lender quote for a 30-year fixed loan today is going to be in the high 6's. JENNY: So if I was about to lock a rate this morning, the situation looks worse than it did at Friday lunch? ANDREW: Materially worse. And the Mortgage Bankers Association data from last week already showed refinance applications down 18 percent week over week. That refi window everyone was watching for in May is effectively closed for now. Purchase applications were flat, which actually sounds resilient, but it is flat at a level that's the weakest in years. ANDREW: On the regulatory side, the FHA's February mortgagee letter on loss mitigation continues to squeeze servicers. National Mortgage News reported first-quarter foreclosure filings hit about 119,000 nationally, up 26 percent year over year, the highest in six years. With the Consumer Financial Protection Bureau pulled back under this administration, the risk is shifting onto FHA and state regulators, and you can see it in default servicer margins. JENNY: Bottom line for a buyer this week? ANDREW: If you have a rate lock that holds through Friday, hold it. If you don't, the most important calendar event for you is the May inflation print on Wednesday morning. A hot reading on top of a hot jobs print pushes the thirty-year toward 6.75 percent. A soft one is the only thing that brings it back. JENNY: Let me take you over to the AI desk, because there is a lot moving this week, starting with the biggest IPO in years. JENNY: SpaceX is in the final stretch of its roadshow. Pricing is set for Wednesday night, with the Nasdaq debut Thursday. The company is going out at a fixed price of 135 dollars a share, which values it at about 1.77 trillion dollars. That would make it roughly the seventh-largest U S company on day one. CNBC is reporting that an event for around 1,500 retail investors is scheduled for Wednesday, with 30 percent of the float earmarked for retail. That is three times the normal mega-cap allocation. ANDREW: A 1.77 trillion dollar valuation with no traded shares yet is a wild data point. Is the institutional book actually there for it? JENNY: The reporting suggests yes. The demand pool for SpaceX exposure has been bottled up for over a decade. The gray market opens tomorrow, which is the first honest read on where institutions actually want to pay. Watch that tomorrow morning. JENNY: On the Anthropic side, Project Glasswing, that's the early-access program for the Mythos vulnerability-finding model, expanded over the weekend. Bloomberg first reported, and TechCrunch and Cybersecurity Dive confirmed, that the EU's cybersecurity agency ENISA has now been granted access, along with about 150 additional organizations across more than 15 countries. New sectors include power, water, healthcare, and communications. Anthropic says Project Glasswing partners have found more than 10,000 critical-severity vulnerabilities since the model launched in April. ANDREW: So when ENISA finds something serious in European critical infrastructure using a United States model, who actually controls the disclosure timeline? JENNY: That is the live question, and it is exactly why this matters. The disclosure-coordination protocol between Anthropic, ENISA, and EU member states is still being negotiated. And the answer there shapes how every U S AI lab partners with foreign governments going forward. JENNY: Quickly on Microsoft. Project Polaris and the MAI-Thinking-1 model launched at Build last week are now in private preview on the company's custom Maia 200 chip. The pitch to enterprise is no OpenAI distillation in the training, which the legal and procurement teams at large banks have been asking for since the spring. ANDREW: Jenny, let's bring it home. What does the morning look like for Jacksonville? JENNY: Weather-wise, Jacksonville is looking at a high near 92 degrees today, partly sunny, with a low around 73 overnight. Breezy in the afternoon, no rain expected, so the standard summer heat advisories apply. JENNY: The biggest local story is happening at City Hall at 1 p.m. this afternoon. JEA Chief Administrative Officer Jody Brooks testifies in front of the City Council's Special Investigative Committee. This is the first of the headline-name testimonies, with CEO Vickie Cavey scheduled for June 22nd. Jacksonville Today and the Daily Record have both reported that Brooks has said she does not believe she is a target of the parallel criminal probe, and that the state attorney general and the State Attorney's Office have pulled records on lobbying contracts JEA canceled with Ballard Partners. ANDREW: What's on the line for Brooks today specifically? JENNY: Three pressure points. The workplace-culture allegations, the underpaid water-capacity fees from some of JEA's largest customers, including the unresolved 1986 Mayo Clinic dispute, and the decision to move forward on the 1.57 billion dollar natural gas plant. Brooks confirmed the regulatory applications for that plant were filed on June 4th, so the financial-impact line of questioning is going to be sharp. JENNY: Two quicker stories on the city side. The Jaguars open mandatory minicamp tomorrow morning at Miller Electric Center, running June 9th through the 11th. Travis Hunter is still working back from the knee injury he sustained last season. General Manager James Gladstone said back in April the plan is for Hunter to be at, quote, "full tick" by training camp in late July, so expect a limited role this week. The Wednesday practice is open to the public, 8:40 to 10:55 in the morning, with free tickets. JENNY: And the City Council has a full vote tomorrow on the 478-home rezoning along Yellow Water Road on the Westside, which cleared the land-use committee last week. With the November property-tax amendment hanging over the city budget, expect every housing-pipeline vote between now and the fall to get more scrutiny than usual. ANDREW: Remind me on that property tax amendment, just to anchor for anybody who missed it. JENNY: Sure. The state legislature put it on the November ballot last month. It would raise the homestead exemption from 50,000 dollars to 150,000 in 2027, then to 250,000 by 2028. The City Council Auditor's office calculates Jacksonville loses more than 300 million dollars a year by fiscal 2029, roughly 17 percent of the general fund. Mayor Deegan held a news conference on Thursday calling the amendment, quote, "hastily conceived" and, quote, "short-sighted." Libraries, parks, public health, and homelessness services are the first cuts on the table if it passes. Public safety and pensions are protected. So that is the budget shadow over every new spending vote between now and November. JENNY: One quick last item — News4Jax reported the Pecan Park Flea Market, a 40-year Northside landmark, is closing this fall after selling for 8.5 million dollars. Big number for a vendor community that's been there for four decades. ANDREW: That is a good handoff. Every one of those local stories now sits in the shadow of the Fed and the oil price. ANDREW: Before we let you go, one thing to watch this week. The May Consumer Price Index print, out Wednesday morning at 8:30 Eastern. After Friday's jobs surprise and this weekend's oil shock from the Middle East, this is the single number that decides the path of the ten-year yield, the thirty-year mortgage, and the framing for the Fed's meeting on June 16th and 17th. Headline consensus is around 2.7 percent year over year. A print at or below 2.5 percent gives the bond market room to breathe. Anything 2.9 or higher, and the entire week tilts toward more rate pressure and more equity selling. JENNY: That is your Morning Brief for Monday. Have a great week. ANDREW: We'll see you tomorrow.

Jax Morning Brief — Hot May Jobs Print, Senate Passes ICE Bill, Anthropic Hands Mythos to EU

Good morning. It's Friday, June 5th, 2026. This is The Morning Brief. I'm Jenny. ANDREW: And I'm Andrew. JENNY: This morning's jobs report came in hot — payrolls beat expectations, and the ten-year Treasury is back at four and a half percent. We'll unpack what that means for the Fed and for mortgage rates. ANDREW: And Anthropic just handed the European Union's cybersecurity agency direct access to its most powerful security model. We'll get to what that signals about who's setting the rules for frontier AI. JENNY: Let's get into it. ANDREW: A quick look at the markets. The Dow ripped to a fresh record close yesterday, jumping nearly 875 points, up about one point seven percent, to finish at 51,561. The S and P 500 added about four-tenths of a percent to 7,584, also a record. The Nasdaq was the laggard, slipping less than a tenth of a percent to 26,831, as investors rotated out of chip names after Broadcom sold off. The ten-year Treasury yield closed near 4.5 percent, and Freddie Mac's weekly survey put the thirty-year fixed mortgage rate at 6.48 percent yesterday, down from 6.53 the week before — the first weekly dip in six weeks. ANDREW: Let's start with this morning's main event. The Bureau of Labor Statistics reported the U.S. economy added about 115,000 jobs in May. That's well above the 85,000 economists had been expecting, and it makes May the third straight month of payroll growth. The unemployment rate held at 4.3 percent. Average hourly earnings came in line with forecasts, up about three-tenths of a percent on the month. JENNY: So a beat, but not a runaway. How is the bond market reading it? ANDREW: Hawkishly. The ten-year Treasury yield is right back at the 4.5 percent level it last visited in late May. That's a big deal because, on Wednesday, the same yield was down at 4.43 after the JOLTS surprise was offset by Iran de-escalation hopes. Two days later, the cushion is gone. CME fed funds futures still show roughly 97 percent odds of no change at the June FOMC meeting in two weeks, but the September cut that traders were leaning into has tightened sharply. JENNY: And this is the first jobs print Kevin Warsh is sitting with as Fed chair. ANDREW: It is. Warsh was sworn in May 22nd and has been almost entirely silent in public. The pre-meeting blackout window starts this weekend, so any signal he wanted to send had to land by today. He didn't send one. The market is now reading the silence as endorsement of the no-cut stance, at least for June. ANDREW: To the other story driving Washington this morning — the Senate passed the immigration enforcement reconciliation bill early this morning, 52 to 47, after a nearly 18-hour vote-a-rama. Senator Lisa Murkowski of Alaska was the only Republican to break ranks. Crucially, the 1.78 billion dollar Justice Department anti-weaponization fund that nearly killed the bill survived every amendment to strip it out, including a Tillis-Collins maneuver that got eleven Republicans on board but still failed. JENNY: That fund had Susan Collins blocking the bill all week. What changed? ANDREW: Leadership ate the fight. Senator Thune kept the floor open through the night and let the amendments lose one by one. The bill now goes to the House, where Speaker Johnson has to thread it past members who want even more for ICE and members who object to the DOJ fund on principle. Roll Call is reporting that House leadership has already left town for the week, so there is no immediate path to the president's desk. ANDREW: Overseas — the Israel-Lebanon ceasefire we talked about Wednesday is hanging by a thread. Israel and Lebanon agreed to renew it on June 3rd, with U.S. mediation and new "pilot zones" for the Lebanese army to police. The next day, Hezbollah publicly rejected the deal and demanded a full Israeli withdrawal first. Within hours, the Israeli air force struck a Lebanese village. The next negotiation round is scheduled for June 22nd in Washington, but as of this morning, an Iranian official is telling reporters there has been "no tangible progress." The Trump-Iran framework, separately, is still unsigned. Jenny, over to you for what's happening in housing. JENNY: Thanks, Andrew. The mortgage market is staring down a problem this morning. Freddie Mac's weekly print yesterday — 6.48 percent on the thirty-year fixed — was the first weekly decline in six weeks, and it was based on data collected before this morning's jobs report. So that 6.48 number is already stale. ANDREW: How fast does the daily index move on a print like this? JENNY: Fast. Mortgage News Daily had the thirty-year fixed at 6.60 percent earlier this week and climbing. With the ten-year back at 4.5 and spreads still wide because lenders are hedging payroll Friday, the daily index is likely to push toward 6.7 or even 6.75 by Monday morning. For a buyer locking a 400,000 dollar loan, every quarter-point higher costs roughly 65 dollars more per month over the life of the loan. ANDREW: And what about demand? Did this week's MBA print show buyers walking away? JENNY: The MBA applications survey on Wednesday was telling. Purchase applications were essentially flat. Refinances dropped about 18 percent week over week — that's not a buyer story, that's a refinance window slamming shut. Refi share is back down near 37 percent. The takeaway is that the spring buying season is grinding on, but the refi pipeline that was building through May has effectively closed. JENNY: One more story on the lending side — the foreclosure data is starting to tell a quieter story underneath all of this. National Mortgage News is reporting first-quarter foreclosure filings hit roughly 119,000, up 26 percent year over year, and the highest in six years. The driver is the new FHA loss mitigation framework — mandatory three-month trial payment plans and limits on home retention options — that's squeezing servicers and pushing more files toward final disposition. ANDREW: So the rate story is the noise, and servicing is the signal. JENNY: Exactly. Let's move on to AI. JENNY: The big AI story this morning is from Anthropic. The company is granting the European Union's cybersecurity agency, ENISA, direct access to its Mythos security model. It's the first EU government agency to get it. Bloomberg, Dark Reading, and TechCrunch all confirmed the deal this week. The agreement followed months of negotiation, with EU officials flying to San Francisco late last month to close the terms. ANDREW: Remind me what Mythos actually does — and why a European agency getting access is the headline. JENNY: Mythos is an autonomous vulnerability-discovery model. Since its launch in April, it has reportedly identified more than 10,000 high or critical severity software flaws across major operating systems and browsers — including zero-days that human reviewers had missed for years. The reason the ENISA deal matters is that it positions Anthropic, an American AI company, as effectively a deputized cyber defender for the European Union — at a moment when Brussels is also finalizing the EU AI Act's compliance schedule. It is unusual access for a foreign vendor. ANDREW: That sounds like a regulatory hedge as much as a security partnership. JENNY: It reads that way. And there's a parallel story — Anthropic is also expanding the program to about 150 new organizations across more than 15 countries, including NATO, Okta, Samsung, and SK Telecom. Separately, the Wall Street Journal and a couple of trade outlets are reporting that Anthropic has embedded staff at the NSA to help deploy Mythos for offensive cyber work. So the same model that's defending European critical infrastructure is also reportedly being used by U.S. signals intelligence. That's a tension Anthropic will have to manage carefully into its IPO filing. ANDREW: Speaking of which — SpaceX kicked off its roadshow yesterday at a fixed price. JENNY: 135 dollars a share. That values SpaceX at about 1.77 trillion dollars, which would put it ahead of Tesla as the seventh-largest U.S. company by market cap. The plan is to sell roughly 555 million shares, raise about 75 billion, and start trading on the Nasdaq under the ticker SPCX on June 12th. Final pricing lands June 11th. Inside the amended S-1, the company also confirmed Anthropic is paying 1.25 billion dollars a month — through May 2029 — for access to its Colossus compute clusters. That ends a public dispute Elon Musk had been waging on social media. JENNY: Closer to home — weather-wise, Jacksonville is looking at a high near 87 degrees today with a 40 percent chance of afternoon showers and thunderstorms. Northeast wind 10 to 15 miles per hour, low tonight around 74. Recent rainfall is improving local drought conditions, but the city-wide burn ban remains in effect. JENNY: City Hall had two major stories this week. Yesterday, Mayor Donna Deegan held a news conference at City Hall to publicly oppose the property tax overhaul the Florida Legislature put on the November ballot in last week's special session. She called the measure "hastily conceived" and "short-sighted." City Council auditors estimate Jacksonville stands to lose more than 300 million dollars a year by fiscal year 2029 if voters approve it. ANDREW: 300 million is roughly what — 17 percent of the general fund? JENNY: That's right. And Deegan was explicit about what gets cut first — libraries, parks, public health programs, literacy, housing, and homelessness services. Public safety and pensions are constitutionally protected, so the math falls hardest on everything else. Then this morning, in a related twist — the City Council stalled a routine renewal of the Duval County Public Schools half-cent sales tax. The Mayor pushed back hard, saying the council's role on a referendum like that is "ministerial," not substantive. So expect a fight there next week. ANDREW: That JEA investigation testimony — that's coming up Monday, right? JENNY: It is. Chief Administrative Officer Jody Brooks is scheduled to testify before the Special Investigative Committee Monday at 1 PM. Brooks has said in writing she does not believe she's the target of any parallel criminal investigation, but the State Attorney's office and the Florida AG have both pulled records. CEO Vickie Cavey is scheduled to follow on June 22nd. The committee is also looking into JEA's 1.57 billion dollar natural gas plant decision and an unresolved capacity-fee dispute with Mayo Clinic dating back to 1986. JENNY: And the Culinary Institute of America's board meets June 15th and 16th to choose its fourth U.S. campus location. Jacksonville is on the shortlist alongside Atlanta, Charleston, and Nashville. City Council approved a 35 million dollar incentive package on an emergency basis last week. If Jacksonville wins, the campus would be a 50,000 square foot anchor inside the new downtown convention hall. That decision lands ten days from today. JENNY: One more local note — the Jaguars are wrapping up OTAs at the Miller Electric Center. Travis Hunter is in every huddle holding the play sheet but still rehabbing from the knee injury that ended his 2025 season early. Trevor Lawrence told reporters this week that Hunter is "the twelfth guy" in every meeting. Mandatory minicamp starts Monday, and Wednesday's practice is open to the public. ANDREW: Before we let you go, one thing to watch next week — Wednesday, June 11th. That's the day SpaceX prices its IPO. The fixed offer is 135 dollars, but Morningstar's published fair value estimate sits at less than half that — about 780 a share equivalent. So the real question is whether the institutional book absorbs 75 billion dollars at this price, or whether demand softens and the company has to walk it back before Friday's debut. Watch the gray market on Tuesday for the first honest read, because if it trades below 135 before the bell on Friday, that becomes the year's most important market story. JENNY: That's your Morning Brief for Friday. Have a great weekend. ANDREW: We'll see you Monday.