protection

A gauge of risk on Oracle Corp.’s debt reached a three-year high in November, and things are only going to get worse in 2026 unless the database giant is able to assuage investor anxiety about a massive artificial intelligence spending spree, according to Morgan Stanley.

A funding gap, swelling balance sheet and obsolescence risk are just some of the hazards Oracle is facing, according to Lindsay Tyler and David Hamburger, credit analysts at the brokerage. The cost of insuring Oracle Corp.’s debt against default over the next five years rose to 1.25 percentage point a year on Tuesday, according to ICE Data Services.

The price on the five-year credit default swaps is at risk of toppling a record set in 2008 as concerns over the company’s borrowing binge to finance its AI ambitions continue to spur heavy hedging by banks and investors, they warned in a note Wednesday.

The CDS could break through 1.5 percentage point in the near term and could approach 2 percentage points if communication around its financing strategy remains limited as the new year progresses, the analysts wrote. Oracle CDS hit a record 1.98 percentage point in 2008, ICE Data Services shows.

A representative for Oracle declined to comment.

Oracle is among firms taking part in an artificial intelligence spending race, which has quickly made the data center giant the credit market’s barometer for AI risk. The company borrowed $18 billion in the US high-grade market in September. Then in early November, a group of about 20 banks arranged a roughly $18 billion project finance loan to construct a data center campus in New Mexico, which Oracle will take over as tenant.

Banks are also providing a separate $38 billion loan package to help finance the construction of data centers in Texas and Wisconsin developed by Vantage Data Centers, Bloomberg reported last month. Lenders involved in these construction loans linked to Oracle are likely a key driver of the surge in trading volume on the Oracle’s CDS recently, a trend that may persist, according to Morgan Stanley.

“Over the past two months, it has become more apparent that reported construction loans in the works, for sites where Oracle is the future tenant, may be an even greater driver of hedging of late and going forward,” wrote the analysts.

There is a risk that some hedges by banks could unwind if and when banks distribute these loans to other parties, they wrote. Still, other parties may also hedge at some point even if down the road plus the construction debt funding needs don’t stop after the Vantage sites and the New Mexico site.

Last month, the analysts said they expect near-term credit deterioration and uncertainty to drive further hedging by bondholders, lenders and thematic players.

“The bondholder hedging dynamic and also the thematic hedging dynamic could both grow in importance down the road,” they added.

Oracle CDS have underperformed the broader investment-grade CDX index and Oracle corporate bonds have underperformed the Bloomberg high-grade index amid the jump in hedging demand and the weakening sentiment. Concerns have also started to weigh on Oracle’s stock, which the analysts said may incentivize management to outline a financing plan on the upcoming earnings call, including details on Stargate, data centers and capital spending.

The analysts had previously been recommending investors buy Oracle bonds and CDS in what is known as a basis trade, to profit from their expectation that credit derivatives would widen more than the bonds. Now they’re saying it’s a cleaner trade to just buy the CDS outright.

“Therefore, we are closing the ‘buy bond’ part of the basis trade, and keeping the ‘buy CDS protection’ leg of it,” they wrote. “We think a trade in CDS outright is cleaner right now and will result in a greater spread move.”

Larry Ellison, Oracle’s chairman of the board, is backing his son David Ellison’s bid to acquire Warner Bros Discovery, which is also considering offers from Netflix and Comcast.

Mutua writes for Bloomberg.

Nov. 22 (UPI) — President Donald Trump said he is “immediately” ending deportation protections for more than 400 Somali immigrants living in Minnesota.

Trumo made the announcement on Truth Social on Friday night.

The East African nation has had protection since 1991, and it was renewed on Sept. 18, 2024, through March 17, 2026, when Joe Biden was president.

“I am, as President of the United States, hereby terminating, effective immediately, the Temporary Protected Status (TPS Program) for Somalis in Minnesota,” he wrote. “Somali gangs are terrorizing the people of that great State, and BILLIONS of Dollars are missing. Send them back to where they came from. It’s OVER!”

He did not offer evidence related to the allegations of terrorist gangs in the state.

In addition, he blamed Democratic Gov. Walz of overseeing a state that had become a “hub of fraudulent money laundering activity” — also without proof.

“It’s not surprising that the President has chosen to broadly target an entire community. This is what he does to change the subject,” Walz, who was Kamala Harris‘ vice presidential candidate in the 2024 election against Trump, said less than two hours later in a post on X.

TPS was created in 1979 to allow migrants who escaped “civil unrest, violence or natural disasters” from being deported from the United Stats.

Somalia, which for decades has experienced civil war and instability, is among 17 migrants’ countries with protection. Somalia’s population is 20 million.

There are 705 Somali immigrants approved for the status as of March 31 with 430 in Minnesota, according to a Congressional Research Service report.

The Cedar-Riverside neighborhood east of downtown Minneapolis is nicknamed “Little Mogadishu” because of its large Somali population.

Rep. Ilhan Omar, a Democrat representing Minneapolis and born in Somalia, blasted the decision.

“Good luck celebrating a policy change that really doesn’t have much impact on the Somalis you love to hate. We are here to stay,” Omar wrote on X, noting that most Somalian immigrants are U.S. citizens.

Trump in the past has been at odds with Omar.

“I look at somebody that comes from Somalia, where they don’t have anything – they don’t have police, they don’t have military, they don’t have anything,” Trump said in a Nov. 11 interview with Laura Ingraham on Fox News. “All they have is crime — and she comes in and tells us how to run our country.”

Since 1979, more than 26,000 Somali refugees moved to Minnesota, according to the state Department of Health.

Minnesota Attorney General Keith Ellison, a Democrat, said his office is “monitoring the situation and exploring all of our options.

“Somali folks came to Minnesota fleeing conflict, instability and famine, and they have become an integral part of our state, our culture and our community,” Ellison wrote on Facebook. “Donald Trump cannot terminate TPS for just one state or on a bigoted whim.”

“I am confident that Minnesotans know better than to fall for Donald Trump’s scare tactics and scapegoating,” he added.

Minneapolis Mayor Jacob Frey also spoke out with a Facebook post that he is “standing with our Somali community today. Minneapolis has your back — always.”

Republican House Speaker Lisa Demuthg, who is running for governor against Walz, applauded the decision.

“The unfortunate reality is that far too many individuals who were welcomed into this country have abused the trust and support that was extended to them, and Minnesota taxpayers have suffered billions of dollars in consequences as a result,” Demuth said in a statement to the Minnesota Star Tribune.

Minnesota Republican U.S. Rep. Tom Emmer adding a post posted on X that “accountability is coming.”

Emmers post linked to a report from right-wing Breitbart about a letter he wrote to Daniel Rosen, U.S. attorney for the District of Minnesota, urging him to “open an investigation into reports that Minnesota taxpayer dollars are ending up in the hands of the al-Shabab terrorist network in Somalia.”

The move was criticized by Jaylani Hussein, president of the Minnesota chapter of the Council on American-Islamic Relations.

“This is not just a bureaucratic change; it is a political attack on the Somali and Muslim community driven by Islamophobic and hateful rhetoric,” Hussein told CBS News. “We strongly urge President Trump to reverse this misguided decision.”

He added that the protection provided “a legal lifeline for families who have built their lives here for decades.”

Trump has also ended TPS protections for Afghan, Venezuelan, Syrian and South Sudanese nationals. Those actions from each have been challenged in courts.

President Trump’s pledge to terminate temporary legal protections for Somalis living in Minnesota is triggering fear in the state’s deeply rooted immigrant community, along with doubts about whether the White House has the legal authority to enact the directive as described.

In a social media post late Friday, Trump said he would “immediately” strip Somali residents in Minnesota of Temporary Protected Status, a legal safeguard against deportation for immigrants from certain countries.

The announcement was immediately challenged by some state leaders and immigration experts, who characterized Trump’s declaration as a legally dubious effort to sow fear and suspicion toward Minnesota’s Somali community, the largest in the nation.

“There’s no legal mechanism that allows the president to terminate protected status for a particular community or state that he has beef with,” said Heidi Altman, policy director at the National Immigrant Justice Center.

“This is Trump doing what he always does: demagoguing immigrants without justification or evidence and using that demagoguery in an attempt to take away important life-saving protections,” she added.

The protection has been extended 27 times for Somalis since 1991, with U.S. authorities determining that it was unsafe for people already in the United States to return to Somalia.

The Trump administration could, however, move to revoke the legal protection for Somalis nationally. But that move would affect only a tiny fraction of the tens of thousands of Somalis living in Minnesota. A report produced for Congress in August put the number of Somalis covered by TPS at 705 nationwide.

“I am a citizen and so are [the] majority of Somalis in America,” Minnesota Rep. Ilhan Omar, a Democrat born in Somalia, said in a social media post Friday. “Good luck celebrating a policy change that really doesn’t have much impact on the Somalis you love to hate.”

Still, advocates warned the move could inflame hate against a community at a time of rising Islamophobia.

“This is not just a bureaucratic change,” said Jaylani Hussein, president of the Minnesota chapter of the Council on American-Islamic Relations. “It is a political attack on the Somali and Muslim community driven by Islamophobic and hateful rhetoric.”

In his social media post, Trump claimed, without offering evidence, that Somali gangs had targeted Minnesota residents and referred to the state as a “hub of fraudulent money laundering activity.”

Federal prosecutors have in recent weeks brought charges against dozens of people in a social-services fraud scheme. Some of the defendants are from Somalia.

Gov. Tim Walz, a Democrat, has noted that Minnesota consistently ranks among the safest states in the country.

“It’s not surprising that the president has chosen to broadly target an entire community,” Walz said Friday. “This is what he does to change the subject.”

Community advocates say that the Somali diaspora in Minnesota has helped to revitalize downtown corridors in Minneapolis and plays a prominent role in the state’s politics.

“The truth is that the Somali community is beloved and long-woven into the fabric of many neighborhoods and communities in Minnesota,” Altman said. “Destabilizing families and communities makes all of us less safe and not more.”

As part of a broader push to adopt hard-line immigration policies, the Trump administration has moved to withdraw various protections that had allowed immigrants to remain in the United States and work legally.

That included ending TPS for 600,000 Venezuelans and 500,000 Haitians who were granted protection under former President Biden. The Trump administration has also sought to limit protections previously extended to migrants from Cuba and Syria, among other countries.

Offenhartz writes for the Associated Press.

Nov. 8 (UPI) — One or more people fired shots at Customs and Border Protection agents, who were carrying out law enforcement activities in a southwestern Chicago neighborhood on Saturday.

The agents were in Chicago’s Little Village neighborhood as part of the Operation Midway Blitz operation to enforce federal immigration laws in the sanctuary city when an unidentified male in a black Jeep fired shots at the agents and then fled in his vehicle.

The number of shots fired was not announced.

“This incident is not isolated and reflects a growing and dangerous trend of violence and obstruction,” the Department of Homeland Security said in a post on X.

“Over the past two months, we’ve seen an increase in assaults and obstruction targeting federal law enforcement during operations,” the post continued.

“These confrontations highlight the dangers our agents face daily and the escalating aggression toward law enforcement. The violence must end.”

The incident occurred near 26th Street and Kedzie Avenue when agents detained a young woman, which drew the attention of protesters who demanded CBP release her, according to WLS-TV.

As protesters followed the CBP caravan in which the woman was detained, the man in the black Jeep fired shots at the agents.

Some protesters also threw bricks and a paint can at the agents’ vehicles, CBS News reported.

The Chicago Police Department arrived on the scene to clear it and restore order.

No arrests have been made, but federal law enforcement is continuing to search for the driver of the black Jeep.

Chicago Ald. Byron Sigcho-Lopez said the CBP agents “came out of their vehicles pointing their weapons” and “used tear gas on people,” WLS-TV reported.

After Chicago police arrived, one police officer was struck by a vehicle and taken to a local hospital for treatment. His condition was not reported.

The Chicago Police Department said there were no reports of anyone being struck by gunfire.

CBP agents continued their law enforcement activities near 26th and Pulaski and deployed tear gas to fend off protesters as they detained another person.

Many protesters used whistles and car horns to warn others of the CBP activities during an afternoon attempt to detain a man and his niece near 25th and Sawyers.

The incident also required the attention of the Chicago Police Department after someone used a vehicle to ram a CBP vehicle.