Houthis Attack Ship in Red Sea for First Time Since Trump Announced a Truce
The Liberian-flagged, Greek-owned bulk carrier Magic Seas had taken on water after being hit by gunfire with small arms and self-propelled grenades near the Houthi-controlled port city of Hodeidah in the Red Sea, according to the United Kingdom Maritime Trade Operations, a British Navy task force that monitors shipping in the Middle East.
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Yahoo
an hour ago
- Yahoo
Prediction: This Investment Could Be the Biggest Winner From President Trump's "Big, Beautiful Bill"
President Trump's "big, beautiful bill" includes major changes to federal spending and tax policies. The Congressional Budget Office estimates that the bill could increase the national debt by $3 trillion during the next decade. Inflation could be an unwanted consequence of the bill, and investors may want to keep on eye on alternative investment opportunities beyond stocks. 10 stocks we like better than Bitcoin › After several weeks of deliberation on Capitol Hill, President Donald Trump took a victory lap on July 4 after he signed the "big, beautiful bill" into law. For now, it's difficult to determine which sectors or specific companies will be most vulnerable or stand to benefit from the new policies set to take effect under the law. Let's explore some of the major themes covered in the megabill, as well as some of the economic headwinds that could emerge now that this legislation has passed. From there, I'll detail why Bitcoin (CRYPTO: BTC) could be the biggest winner and why investors may want to keep their eye on the cryptocurrency right now. At its core, the "big, beautiful bill" revolves around major changes to tax and spending policies. On the tax side of the equation, the bill seeks to extend Trump's 2017 tax cuts as well as reduce taxes on tips, overtime pay, and retirement income. Lower taxes results in less revenue for the federal government. Regarding spending, the bill includes provisions to reduce certain areas under Medicaid as well as some Supplemental Nutrition Assistance Program (SNAP) benefits. While reductions to federal spending should help offset lower revenue from taxes, the Congressional Budget Office (CBO) still projects that the bill will increase the national debt by almost $3 trillion during next decade. Large-scale tax cuts could spur demand from consumers and businesses. In theory, this increased economic activity could result in higher prices for goods and services. Although history by no means serves as a guarantee for what's to come, the dynamics illustrated in the chart below suggest inflation could be an unwanted consequence of the legislation. Per the graph above, the U.S. deficit worsened throughout 2020 and 2021. This isn't a coincidence because this period featured unusually high government spending in the form of COVID stimulus packages. Shortly thereafter, inflation levels peaked at about 9% as federal spending remained elevated. To be clear, deficits alone don't inherently cause inflation. As the chart shows, the U.S. was running a deficit before 2020 but inflation rates remained relatively steady at about 2%. The more nuanced point here is that deficits can help contribute to inflation, especially during demand surges -- which could very well occur under the new policies put in place. Moreover, prolonged deficits -- which the CBO expects under the "big, beautiful bill" -- do not always inspire inflationary environments immediately, but they can act as a risky setup. With this in mind, the mere perception that an inflationary storm is on the horizon could lead to an interest in alternative assets. This is where Bitcoin enters the picture. The chart below indexes the price of Bitcoin against U.S. inflation rates during the past 10 years. There are a couple of important takeaways from the trends above. First, the price of Bitcoin started rising before inflation peaked during the summer of 2022. This could mean that investors were anticipating inflation anchored by enormous government stimulus. However, the price of Bitcoin sold off sharply throughout 2022 as inflation continued rising. I think the main factor behind Bitcoin's precipitous drop during that period is tied to aggressive interest rate hikes by the Federal Reserve -- essentially reducing liquidity flowing through the markets in an effort to tame inflation. During the past couple of years, Bitcoin has rebounded in spectacular fashion, and it now hovers near all-time highs. To me, the trends explored in the graph above imply that Bitcoin performs best when inflation fears are present but the economic picture also features robust liquidity. In essence, Bitcoin can act as a hedge against inflation, but it is also important to note that the cryptocurrency is sensitive to changes in monetary policy. If the government continues spending -- essentially fueling the economy with mounting debt -- while the Fed holds off on raising interest rates, Bitcoin could become much more than a hedge. Investing in Bitcoin could be seen as a high-conviction view that current policies could bring the current system to a breaking point. In a scenario like this, Bitcoin's upside could be explosive. While the downside will likely be intense volatility (pictured above), I think that is worthwhile in the short term relative to hoarding cash. For these reasons, I think big, beautiful Bitcoin could emerge as the hidden winner from Trump's new legislation. Before you buy stock in Bitcoin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Bitcoin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $694,758!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $998,376!* Now, it's worth noting Stock Advisor's total average return is 1,058% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Adam Spatacco has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy. Prediction: This Investment Could Be the Biggest Winner From President Trump's "Big, Beautiful Bill" was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
New York Times
4 hours ago
- New York Times
They Fled War in Ethiopia. Then American Bombs Found Them.
The men awoke in the middle of the night to the roar of warplanes. Fear was nothing new to Fanta Ali Ahmed, who was trapped with more than 100 migrants in a rickety prison. After civil war reached his home region of Tigray in Ethiopia in 2020, he had fled along one of the world's most dangerous smuggling routes. He had hoped to reach Saudi Arabia, across the Red Sea. Instead, as he passed through Yemeni territory ruled by the Houthi militia, he was arrested and sent to a migrant detention center in northern Yemen. For weeks in March and April of this year, he heard American airstrikes nearby, targeting Yemen in a campaign against the Houthis, who are backed by Iran. But this was the closest the planes had ever come. In 2024, the U.N. recorded more than 60,000 migrants arriving in Yemen from the Horn of Africa. Saudi Arabia Red Sea Location of attack in Saada eritrea Yemen houthi- controlled territory eritrea Sana Tigray Gulf of Aden Djibouti Bosaso Addis Ababa somalia Common migration routes Ethiopia Ethiopia Saudi Arabia Red Sea Location of attack in Saada Sudan eritrea Yemen houthi- controlled territory eritrea Sana Tigray Gulf of Aden Djibouti Bosaso Addis Ababa somalia Common migration routes Ethiopia Ethiopia Sources: Migration route information from the International Organization for Migration. Houthi boundaries from the Institute for the Study of War and AEI's Critical Threats Project. By Daniel Wood When multiple 250-pound bombs hit the prison on April 28, tearing through the roof, Mr. Fanta fell to the ground, he recalled. At first, he thought he was the only one hurt. He later realized that he was one of the luckier ones. Ten people close to him were killed, while others were left with limbs hanging by shredded skin, he said. 'The place and everyone in it were mangled,' said Mr. Fanta, 32, who survived with two broken legs and a broken arm. 'I don't know why America bombed us.' Want all of The Times? Subscribe.
New York Times
5 hours ago
- New York Times
Parents and Graduate Students Have New Loan Limits. Who Will Fill the Gap?
The road map for families paying for higher education used to read something like this: Step one, save if you can. Step two, apply for aid and hope the schools will help. Step three, borrow money from the federal government, up to the total cost of attending, if you're sure that is prudent and can't pay the cost out of current income. Now, step three is changing, thanks to President Trump's domestic policy bill. Starting July 1, 2026, the federal government will add new limits to what many people can borrow for college and graduate school. Parents will be able to borrow only $20,000 per year, or $65,000 total per student, from the federal Parent PLUS program. Graduate students will have a $20,500 annual cap on their federal loans and a $100,000 total limit in most instances, not including their undergraduate debt. And professional schools — medical, law and the like — will generally have a cap of $50,000 per year and a $200,000 total limit. High-priced professional schools, particularly those training doctors, veterinarians and dentists, can cost much more than the $200,000 cap. Even at some undergraduate institutions, the average PLUS-loan debt is currently higher than $65,000. That creates an opportunity for so-called private student loan lenders that could add up to billions of dollars. The question is whether they will jump in — and do so fairly, with interest rates and terms that are not outrageous. Want all of The Times? Subscribe.
