has surpassed the to become the second most significant reserve asset globally, now making up 20% of official reserves.
Meanwhile, the euro’s share has declined to 16%. The continues to lead, comprising 46% of global reserves. This rise in gold’s share is driven by record-high gold prices and strong buying activity by central banks.
Source: Financial Times, ECB
Visualising Trump’s 2026 Budget Proposal
Federal agencies, from those managing foreign aid to those promoting renewable energy, are preparing for significant budget reductions. President Trump’s proposed budget trims $163 billion from non-defence discretionary spending, potentially leading to the complete removal of several programs. In this proposal, the Department of Defence would receive a 13% increase, bringing its funding to $962 billion by 2026.
The Pentagon is poised to receive an additional $114 billion, marking the largest increase among all departments. A significant portion of this boost would go toward developing the “Golden Dome,” a high-cost missile defence system incorporating space-based sensors, satellites, and ground-based interceptors. Trump plans to allocate $175 billion toward this system during his term.
The Department of Homeland Security is also expected to benefit, with a proposed 65% funding increase, equivalent to $42 billion, aimed primarily at strengthening border enforcement.
In stark contrast, 11 other federal departments are facing cutbacks. The most severe reduction in dollar terms would affect the State Department and international programs, which are projected to lose $49 billion. In March, the administration reported terminating 5,341 USAID initiatives, with the remaining responsibilities expected to shift to the State Department.
The House narrowly approved the spending bill on 22 May after making final adjustments, but more revisions are anticipated as it proceeds to the Senate.
May US Inflation Slightly Cooler Than Expected
increased by 2.8% year-over-year, slightly under the projected 2.9%, while came in at 2.4%, aligning with expectations. Although both metrics continue to exceed the Federal Reserve’s 2% inflation target, the recent tariffs introduced by the Trump administration have not yet had a substantial effect on overall price levels.
Source: Bloomberg
S&P 500 Debt at Record Lows, US Government Debt Near Highs
This chart highlights the distribution of leverage across the US economy. While the national debt relative to has reached a record high of approximately 120%, the net leverage of companies, measured against their market capitalisation, has dropped to historic lows.
Net leverage here refers to total interest-bearing liabilities, both short- and long-term, minus cash and cash equivalents.
Source: BofA
In the US, Both Parties Have Failed the Country When it comes to the US National Debt
Historical trends indicate that the US national debt has grown under both Democratic and Republican administrations alike.
Source: Peter Mallouk
Nuclear Technology Stocks Are on Fire
Shares of Oklo (NYSE:) rose by 29% on Wednesday following news that the company is the intended recipient of a major Department of Defence contract to supply clean energy to Eielson Air Force Base in Alaska.
The Defence Logistics Agency Energy issued a Notice of Intent to Award (NOITA), selecting Oklo as the top candidate after a competitive review process.
If finalised, Oklo design, construct, own, and operate an Aurora powerhouse—a compact nuclear microreactor capable of producing both electricity and heat—for the remote military facility.
Headquartered in Santa Clara, California, Oklo was founded in 2013 by Jacob DeWitte and Caroline Cochran, both alumni of MIT. The company specialises in advanced nuclear technology, particularly compact fast reactors, with the mission of delivering clean, safe, and affordable energy on a global scale.
Its core innovation, the Aurora powerhouse, is a small, liquid metal-cooled fast reactor that can generate between 15 and 75 megawatts of electrical power (MWe). It’s engineered for long-term operation—up to 10 years without refuelling—and is ideal for off-grid uses including AI infrastructure, data centres, industrial facilities, isolated communities, and military operations.
The announcement also sparked gains in other nuclear-related stocks. For instance, Nuscale Power Corp (NYSE:), a US company that develops and markets small modular reactors (SMRs)—a new type of nuclear energy technology—also saw upward movement in its share price.
Source charts: Trend Spider, Perplexity.ai