The counteroffensive arrives

As Ukraine reportedly begins its long-expected counteroffensive against Russia, a mood of deepening gloom is gripping Russia’s elite about the prospects for Vladimir Putin’s war. Even the most optimistic among them see a “frozen” conflict as the best available outcome for a Russian war that’s killed tens of thousands of Ukrainians. Many within Russia’s political and business upper classes contend they are tired of Putin’s war and want it to stop. Even if Putin were to agree, however, Kyiv currently has other ideas. NATO tanks and other armor have been spotted on the battlefield, a signal that the latest concerted effort by Ukraine to reclaim its territory may be underway. German-made Leopard tanks and US Bradley Fighting Vehicles pushing toward the town of Tokmak, in Ukraine’s occupied south, are showing up in photographs posted by Russian military bloggers. Ben Barry, a senior fellow at the London-based International Institute for Strategic Studies, said “the Ukrainian counteroffensive has begun.” —David E. Rovella

A rally in technology stocks resumed Thursday, pushing the S&P 500’s gains since an October low past 20%, the marker of a bull market. A jump in jobless claims to the highest since October 2021 delivered a boost to the tech sector, which had been flagging under speculation the Federal Reserve will keep interest rates higher for longer.

Indeed, applications for US unemployment benefits jumped last week to the highest level since October 2021. But continuing claims, which include people who have received unemployment benefits for a week or more, fell to 1.76 million in the week ended May 27, the lowest level since mid-February. The report highlights a labor market that, while largely resilient, may be starting to show signs of cooling. US companies announced more employee terminations in the first five months of 2023 than in all of last year.

Citigroup is said to have dismantled its global team that provides commentary and analysis on foreign-exchange markets. All jobs within the CitiFX global FX strategy team are affected, and employees in London and New York are leaving the firm. Meanwhile, the tally of Credit Suisse investment bankers in the US leaving for rivals ahead of the company’s takeover is climbing.

Forget the weekend barbecue. That blanket of Canadian wildfire smoke covering much of the eastern US is likely to last until Tuesday. Having already sent hundreds of firefighters to help, President Joe Biden said the US would “respond promptly” to any further Canadian requests for more firefighters and air tankers. There are almost 450 active fires in Canada, a number similar to that of Wednesday. Active blazes in Quebec however dropped to 132 from about 150.

General Motors will adapt its electric vehicles to Tesla’s Superchargers, following Ford’s lead and all but ensuring it will become an industry standard in the US. GM Chief Executive Officer Mary Barra broke her seven-month silence on Twitter to announce the news with Tesla CEO Elon Musk Thursday, saying GM EVs will gain access to 12,000 Superchargers.

Howard Hughes Corp., the Texas-based real estate developer that counts hedge fund manager Bill Ackman as its chairman, is struggling to find viable financing for new apartment projects. Property developers and owners are grappling with a financing market that’s freezing up as concerns mount about commercial real estate. Owners, particularly of office buildings, are struggling to pay debt as borrowing costs surged, leading to defaults and negotiations with lenders. Chief Executive Officer David O’Reilly said he reached out to dozens of lenders with a pitch for a new project in The Woodlands, a master-planned community in the Houston area. “Zero showed up and gave me a bid,” he said.

The Republican-appointee dominated US Supreme Court gave an unexpected boost to the Voting Rights Act Thursday, rejecting a GOP-drawn congressional map in Alabama and upholding a decision that requires a second majority Black district. The 5-4 decision diverged markedly from the court’s rulings over the past decade in which it gutted the landmark law, enacted in 1965 to protect minority rights at the polls. Two Republican-appointees, Chief Justice John Roberts and Associate Justice Brett Kavanaugh, joined the three Democratic-appointed justices in the majority.

With three US races scheduled for 2023—the most of any country—this may be the year Formula 1 discovers whether a hit Netflix series translates into a hardcore American fan base. Following last month’s Miami Grand Prix, which saw 270,000 people descend on the city’s International Autodrome, the F1 tour’s next US stop is in Austin, Texas, this October. But the big show will be the following month, when F1 arrives for the first time in Las Vegas. In the latest episode of the Bloomberg Originals series Next in Sports, we go behind the scenes to see how an incredibly expensive, elite global sport has come to embrace the land of NASCAR—and how the land of NASCAR is embracing it right back.

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