money

WASHINGTON  — The Supreme Court on Tuesday struck down Watergate-era limits on how much political parties can spend in a coordinated campaign with their candidates.

By a 6-3 vote, the court said the restrictions on parties and their campaign ads violate the 1st Amendment.

Justice Brett M. Kavanaugh said the court was restoring broad free speech protections for parties and their candidates.

“For nearly 200 years after the ratification of the 1st Amendment, parties could spend freely to support their candidates during campaigns and could do so in coordination with the candidates,” he wrote. “Notably, no one suggests ‘that these elections were not functional or that they were marred by corruption’.”

The decision is a victory for the National Republican Senatorial Committee and is likely to give a boost to Republicans this year in their bid to maintain control of Congress.

That’s because the national Republican committees that support their Congressional candidates have $230 million available to spend this year, while the struggling Democratic committees have less than $120 million.

The party funding limits were challenged in 2022 in a lawsuit filed by JD Vance, who was then running in Ohio for a Senate seat, along with the Republican party committees.

Republicans argued these restrictions on parties were outdated and unwise in an era when “SuperPACs” can raise and spend huge amounts of money to promote candidates because they are independent.

If so, they asked, why shouldn’t the parties be free to raise money and coordinate their campaign ads with the candidates?

Under the current limits, the Federal Election Commission says an individual donor may give only $3,500 to a candidate seeking a federal office, but $132,900 to the national party committees.

Since the 1970s, however, federal election law has limited the parties from funding the campaigns of their candidates on the grounds that it could allow wealthy donors to buy influence.

But the court’s conservatives have repeatedly ruled that campaign money is protected as free speech under the 1st Amendment.

In the Citizens United case of 2010, they struck down the laws that restricted election spending by individuals, companies, unions and other groups.

Left standing were the rather low limits on direct contributions to candidates as well as the limits on how much parties could contribute to directly support candidates.

The limitations on parties and how they support their candidates have been disputed for decades.

The Supreme Court upheld the limits by a 5-4 vote in 2001 and said these “coordinated expenditures” were more like contributions than independent spending, and therefore, could be limited to protect against corruption.

Two years ago, the Biden administration defended the law, and an appeals court upheld it based on the court’s 2001 decision.

But last year, the Supreme Court agreed to hear the new challenge in National Republican Senatorial Committee vs. FEC.

Rather than defend the law, the Trump administration sided with the GOP and said the party limits should be struck down.

In dissent, Justice Elena Kagan looked back to the history of the Watergate era.

“For over half a century, a federal statute has guarded against actual and apparent quid pro quo corruption in our political system by limiting the amount of money a donor can contribute to a candidate,” she said. “The law’s theory is simple: A candidate may be induced to trade official acts for campaign contributions—and the bigger the contribution, the stronger both the candidate’s temptation and the public’s suspicion.

“But today, the court rewrites the rules, to allow circumvention of the contribution limits … and ushers back in the same opportunities for quid pro quo corruption that the contribution limits were meant to check.”

Justices Sonia Sotomayor and Ketanji Brown Jackson agreed.

The Democratic National Committee and attorney Marc Elias had stepped in to defend the limits.

He said the parties are free to speak in favor of their candidates but he argued that allowing them to “subsidize the campaign expenses of their candidates” is a contribution that can be regulated.

Otherwise, the “potential for actual or apparent corruption is is obvious,” he said.

The ruling is another election-year boost for the GOP.

Last month, the court’s conservatives ruled the Voting Rights Act did not prevent Republican-controlled states in the South from redrawing congressional districts that favored Black Democrats.

New maps in Louisiana, Alabama, Tennessee and Florida are expected to flip several seats in favor of the GOP.

The latest data from the Statistical Centre of Iran (SCI) shows the Consumer Price Index (CPI) for the period 22 May–21 June 2026 was 88.6% higher than in the corresponding period a year earlier. In practical terms, a household that spent 100 monetary units on the same basket of goods and services a year ago would now need to spend approximately 189 monetary units to purchase that basket.

ADVERTISEMENT

ADVERTISEMENT

Economists attribute the sharp increase in prices to a combination of long-standing structural challenges and more recent pressures. These include weak economic management, persistent fiscal and monetary imbalances, the continued impact of international sanctions, subdued growth prospects, heightened uncertainty in the business environment and widening fiscal deficits. More recently, military conflict and heightened regional tensions have placed further strain on Iran’s economy by increasing investment risks, disrupting economic activity and adding pressure on public finances.

Statistical Centre versus Central Bank figures

Alongside the figures published by the Statistical Centre of Iran (SCI), the Central Bank of Iran (CBI) has reported different inflation estimates. According to the CBI, year-on-year inflation reached 83.1% at the end of the period 22 May–21 June 2026, while the annual inflation rate stood at 57.7%.

These estimates differ from those published by the SCI, which reported an annual inflation rate of 62.0% and a year-on-year inflation rate of 88.6% for the same period.

The gap between the two sets of estimates amounts to 4.3 percentage points for annual inflation and 5.5 percentage points for year-on-year inflation. Such discrepancies are not unusual in Iran and have recurred over recent years.

The differences largely reflect variations in methodology, including the composition of household consumption baskets, the weighting assigned to individual goods and services, and data collection and sampling techniques. Although both institutions seek to measure changes in the general price level, methodological differences can lead to materially different inflation estimates.

Despite these statistical differences, both sets of figures point to the same underlying trend: Iran is experiencing one of its most severe episodes of inflation in decades. Persistently rapid price growth has become a structural feature of the economy rather than a temporary shock.

Inflation accelerates from 52% to nearly 90%

Recent data indicate that inflationary pressures have continued to intensify rather than ease. Year-on-year inflation increased from 52.6% in December 2025 to approximately 68% in February 2026, before rising further to 88.6% for the period 22 May–21 June 2026.

This trajectory suggests that inflationary pressures have become increasingly entrenched, reflecting deeper structural imbalances rather than a temporary or purely monetary phenomenon.

International forecasts also point to a challenging outlook. The International Monetary Fund (IMF) projects that Iran’s annual inflation rate will average around 68.9% in 2026, placing the country among the highest-inflation economies in the world. At the same time, the IMF forecasts a contraction in real GDP of around 6.1%, indicating continued pressure on economic activity.

Short-term price dynamics are also noteworthy. The Consumer Price Index increased by 5.9% over a single month, from 22 April–21 May 2026 to 22 May–21 June 2026 (the periods corresponding to the Iranian months of Ordibehesht and Khordad, respectively).

A monthly increase of this magnitude illustrates the speed at which prices are rising, making it increasingly difficult for households to maintain purchasing power and plan their finances.

Exchange-rate depreciation and inflation

Iran’s inflation surge – one of the most severe experienced by the country since the Second World War – has been closely associated with the sharp depreciation of the rial. Inflation has eroded the currency’s purchasing power, while successive declines in the rial have, in turn, fuelled further inflation by increasing the cost of imports and raising inflation expectations.

At the beginning of the year, the US dollar traded at around 1.35 million rials on Tehran’s open market. Following the start of US and Israeli air strikes against Iran on 28 February, the exchange rate rose to approximately 1.72 million rials per US dollar.

During the conflict, the exchange rate temporarily strengthened to around 1.46 million rials per US dollar as economic and commercial activity slowed, reducing demand for foreign currency. However, after Donald Trump threatened further US air strikes against critical Iranian infrastructure on 7 April, the rial came under renewed pressure, with the exchange rate weakening to around 1.63 million rials per US dollar.

Following the announcement of a ceasefire, the exchange rate recovered to approximately 1.525 million rials per US dollar. However, as economic activity resumed and Iranian officials estimated war-related damage at around US$300 billion, the rial weakened sharply again, with the exchange rate reaching a record 1.9 million rials per US dollar.

The subsequent signing of a memorandum of understanding between Tehran and Washington led to a temporary appreciation of the rial, bringing the exchange rate back to around 1.53 million rials per US dollar. Renewed tensions between Iran and the United States, however, pushed the exchange rate higher once again, approaching 1.7 million rials per US dollar.

These developments illustrate the extent to which exchange-rate movements have become a key transmission channel for inflation in Iran. Fluctuations in the rial affect not only the domestic cost of imported goods and production inputs but also the inflation expectations of households and businesses, reinforcing upward pressure on prices.

An uneven burden

Inflation has not affected all segments of society equally. Official data show that lower-income households have experienced a greater erosion of purchasing power than higher-income groups.

Year-on-year inflation reached 108.1% in rural areas, compared with 85.2% in urban areas. This disparity is particularly significant because lower-income households typically spend a larger share of their income on essential goods and services, especially food, leaving them more exposed to rising prices.

From a distributional perspective, inflation acts as an implicit tax, disproportionately reducing the real incomes of households with the least capacity to save, invest or protect themselves against rising prices.

Food at the centre of the cost-of-living crisis

The steepest price increases have been recorded in categories most closely associated with everyday household spending. Official statistics indicate that food prices have more than doubled compared with the same period a year earlier.

Year-on-year inflation reached 173.8% for tobacco, around 178% for meat, poultry and related products, approximately 152% for milk, cheese and eggs, and around 139% for bread and cereals.

Non-food categories have also recorded substantial price increases. Prices for furniture and household equipment rose by more than 111%, while transport costs increased by over 103%.

These figures suggest that the inflationary shock extends well beyond food prices. Alongside the rising cost of everyday essentials, households are also facing substantially higher costs for household goods and transport, further eroding purchasing power and placing increasing pressure on household budgets.

Wages fall behind the cost of living

One of the clearest consequences of sustained inflation is the widening gap between wages and the cost of meeting basic living expenses.

According to the Iranian Labour News Agency (ILNA), the official minimum monthly wage for the current year was set at 166.255 million rials (approximately €85), while representatives at a meeting of the Supreme Labour Council on 13 March 2026 estimated that a minimum household living basket would cost around 450 million rials (approximately €225) per month.

On this basis, the official minimum wage covers only around 37% of the estimated cost of a basic living basket, leaving a shortfall of approximately 63%.

The figures illustrate how rapid inflation has eroded real wages. Although nominal wages have increased over time, they have failed to keep pace with the rising cost of essential goods and services, placing increasing pressure on household living standards.

More broadly, Iran’s inflation challenge extends beyond rising prices alone. A combination of persistent inflation, currency depreciation and weakening purchasing power has created a self-reinforcing cycle that continues to undermine household finances and economic stability.

Published on
30/06/2026 – 12:27 GMT+2

The EU has allocated import quotas for steel to its trading partners on Tuesday in an attempt to fight growing overcapacity from foreign producers.

ADVERTISEMENT

ADVERTISEMENT

The measure comes amid rising tensions between the EU and china China, where most of the global steel surplus originates.

Seeking to shield its market from global overcapacity, EU legislators agreed last April to increase existing tariff-free steel quotas to 18.3 million tonnes per year while doubling tariffs beyond those quotas to 50 percent

The EU’s closest allies, such as the UK, Switzerland and Ukraine, are concerned that their own exports to the EU could be drastically affected by the new measures, and have heavily lobbied the European Commission in recent weeks for preferential access to the EU market.

“We are providing market participants with predictability through clear and transparent quota distribution rules, while applying a fair and objective methodology,” EU Trade Commissioner Maroš Šefčovič said in a statement.

Protectionist move

The protectionist move comes as global steel overcapacity is expected to grow to 721 million tonnes by 2027, according to the OECD, a volume that could threaten jobs across the entire EU steel sector.

The EU came under even greater pressure last year when the US imposed 50 percent tariffs on steel imports, rerouting the global surplus to the European market.

“They built a wall around their market, steel was hitting that wall and was coming back to our market in greater numbers,” a senior EU official said. “That is why we introduced a safeguard measure which followed an investigation.”

The EU is also fighting unfair trade practices across the board with 80 other measures already in place, among them anti-dumping duties, most of which target cheap steel imports from China.

Pressed by its closest allies to ease the measures to their benefit, the Commission announced on Tuesday that half of the 18.3 million tonnes allowed to enter its market each year will be allocated to partners bound by free trade agreements with the bloc, including India, Switzerland and the UK.

Many of the countries that have clinched a trade deal with the EU will be allocated country-specific quotas proportionate to the volumes traded with the EU between 2022 and 2024.

A special status has also been granted to Ukraine to support the country while it remains at war and ensure a certain level of exports to the EU.

Travellers can save money on the popular onboard drink if they place their order at the right time

Jet2 says passengers can save money onboard of they order their drinks early. Customers often love to make the most of the onboard refreshments when they’re jetting off on holiday.

The airline enables passengers to pre-order their in-flight meals, which typically include a hot dish, snacks, and a drink (Costa Coffee, Yorkshire Tea, hot chocolate or water). For those who enjoy a celebratory tipple, Jet2 also serves a selection of alcoholic drinks. According to the website, customers who order ahead could save money on one of the most popular alcoholic drinks.

Jet2 said: “To make your holiday extra special, you can pre-order champagne to enjoy on board. Plus, when you pre-order, you’ll save £5 on the onboard price!” Many passengers bring their own food and drink on board to save money, packing snacks such as sandwiches, salads, wraps, and pasta dishes.

However, there are some restrictions that people should be aware of. For instance, customers can’t bring hot food or drink onto planes for safety reasons, and they cannot bring their own alcohol onboard to drink during the flight. This means passengers cannot drink any duty-free alcohol onboard their flight.

Jet2’s website explains: “No, you can’t bring your own alcohol onboard to drink while on the plane. Only alcoholic drinks bought onboard can be consumed during your flight. And we reserve the right to serve alcoholic drinks at our absolute discretion.”

The airline’s current menu includes spirits, cocktails, wines, and beers, including Grey Goose Vodka, Aperol Spritz, and Heineken. There’s also a range of soft drinks, including Harrogate Spring Water and Robinsons Fruit Shoot.

Remember to drink responsibly (18+) and be Drinkaware. For advice and support on alcohol, visit the Drinkaware website here. Drinkaware warns that the risk of developing a range of health problems, including cancers of the mouth, throat and breast, increases the more you drink regularly.

To keep health risks from alcohol low, you should drink no more than 14 units a week, ensure you have several drink-free days, and avoid binge drinking. The NHS website offers information about alcohol support.

Passengers should be aware that being drunk on a plane is a criminal offence.

Gov.uk explains: “It is an offence under the Air Navigation Order to be drunk on an aircraft and airlines have the authority to prevent passengers they believe are intoxicated from boarding aircraft.”

Published on
30/06/2026 – 11:57 GMT+2

The Japanese yen fell to around 162.4 per dollar in Asian trading on Tuesday morning, its lowest level since 1986.

ADVERTISEMENT

ADVERTISEMENT

The drop extends a punishing run for the yen, which has kept weakening despite the Bank of Japan’s efforts to support it, and now revives the prospect that the authorities will step into the market directly.

Japan’s finance minister, Satsuki Katayama, has already responded to the situation by stating that the government was ready to take “appropriate” and even “decisive” action against excessive currency moves, adding that she had confirmed with Washington that such a step remained an option.

Traders are now watching closely for any sign that Tokyo is selling US dollars to prop up the yen, as it did in the spring.

At the heart of the weakness is the current wide gap between Japanese and American interest rates.

Even after the Bank of Japan raised its benchmark to 1% in mid-June, its highest since 1995, Japanese yields remain far below those in the US, where ten-year government bonds have recently paid around 4.5%, compared with roughly 2.6% in Japan.

That gap sustains the so-called carry trade, in which investors borrow cheaply in yen to buy higher-yielding assets elsewhere, continually pushing the currency down.

A robust dollar has compounded the pressure.

The greenback has drawn safe-haven demand from tensions around the conflict involving Iran, while expectations that the US Federal Reserve could raise rates later this year, even as the Bank of Japan moves cautiously, have widened the divide further.

Japan’s heavy reliance on imported energy, which is costlier amid elevated oil prices, has also added to demand for US dollars.

A test for Tokyo

The renewed slide is a headache for policymakers who have already thrown considerable firepower at the problem.

Between April and May, Japan spent a record ¥11.7 trillion (€63.3bn) intervening in currency markets, the largest such effort on record, yet the Japanese yen has continued to weaken.

Domestic politics has not helped, with the big-spending, growth-focused agenda of Prime Minister Sanae Takaichi raising doubts about Japan’s fiscal discipline.

Analysts say the immediate risk of intervention is high, given that speculative bets against the Japanese yen have climbed to multi-year peaks and a fresh four-decade low tends to sharpen political anxiety in Tokyo.

However, many doubt that buying the currency would reverse its course for long, since the underlying rate gap remains firmly against it.

The Bank of Japan’s next policy decision, due on 31 July, is now in sharp focus, with further rate rises seen as the more durable route to stemming the decline.

For now, the Japanese yen remains at the mercy of forces its central bank has struggled to control.

(Updated to include comments from SA analyst Kenio Fontes.)

What’s the most attractive chip stock for investors right now?

Seeking Alpha analysts Kenio Fontes, Vinay Utham, Jack Bowman, and Hunting Alphas offer their picks.

Kenio Fontes: In terms of momentum, I think Micron (