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    Intelligence drama, SpaceX IPO and execution reprieve

     
    TODAY’S INTELLIGENCE story

    Trump taps Clayton for intel chief as spy tool lapses

    What happened
    President Donald Trump yesterday named Manhattan U.S. Attorney Jay Clayton (pictured above) to replace Tulsi Gabbard as director of national intelligence. Trump picked Clayton after a “revolt from lawmakers” over his choice of housing official Bill Pulte as acting DNI, The New York Times said. Pulte’s appointment “derailed the congressional reauthorization of one of the government’s most powerful surveillance authorities.” The House left town earlier yesterday after rejecting a three-week extension of Section 702 of the Foreign Intelligence Surveillance Act, which expires at midnight tonight. 

    Who said what
    Before Pulte’s elevation, Axios said, “lawmakers were close to assembling a bipartisan coalition” to reauthorize Section 702 after months of “difficult” negotiations “over surveillance reforms.” Clayton’s nomination “garnered praise from both parties in Congress,” The Washington Post said, even though he also lacks the “extensive national security expertise required for the position by law.”

    Clayton would be a “terrific DNI,” said Rep. Jim Himes (Conn.), the top Democrat on the House Intelligence Committee. But “there’s really not a negotiation” on Section 702 “until the president backs away from Bill Pulte — and that is a near-unanimous belief” in Congress. Trump told reporters he still plans to make Pulte acting DNI “for a little while” starting June 19.

    What next?
    The Senate Intelligence Committee scheduled a June 17 confirmation hearing for Clayton. The House “is not expected to vote again until June 23,” Politico said, “effectively ensuring” that Section 702 remains “stuck in limbo.”

     
     
    TODAY’S BUSINESS story

    SpaceX set for record IPO

    What happened
    Elon Musk’s SpaceX makes its stock market debut on the Nasdaq today after selling 555.6 million shares at $135 each. The roughly $75 billion IPO makes it the largest ever and values SpaceX at $1.77 trillion. If the share price rises slightly after it begins trading later today, “Musk, already the world’s richest man, could become its first trillionaire,” at least on paper, The Associated Press said.

    Who said what
    “Like all things Musk, SpaceX’s IPO bucked the norms,” starting with its fixed $135 share price, The Wall Street Journal said. Musk will “hold the majority of a special class of shares, giving him control over decisions related to company strategy, finances and personnel,” the AP said. Part of SpaceX’s sky-high valuation, and “Musk’s future compensation, depends on SpaceX eventually establishing a colony of at least 1 million people on the red planet.”

    What next?
    “Musk and his investment bankers” are selling lofty propositions “about what the rocket and artificial intelligence company will achieve,” The New York Times said. But several analysts are “concerned with SpaceX’s finances,” and Musk’s “history of overpromising” has some investors “increasingly worried” that SpaceX “may burn them.”

     
     
    TODAY’S CAPITAL PUNISHMENT Story

    Courts block Alabama nitrogen execution

    What happened
    The Supreme Court last night rejected Alabama’s emergency request to proceed with the execution of convicted murderer Jeffery Lee using nitrogen gas despite lower courts finding the method unconstitutionally cruel. Three conservative justices — Clarence Thomas, Samuel Alito and Neil Gorsuch — said they would have allowed last night’s scheduled execution to proceed. Lee, convicted of killing two people in a pawnshop in 1998, would have been the ninth inmate killed by nitrogen hypoxia since Alabama pioneered the oxygen-starvation method in 2024. 

    Who said what
    The Supreme Court’s decision “capped an extraordinary legal back-and-forth over the humaneness” of nitrogen hypoxia, The Associated Press said, and handed “at least a temporary, rare victory for opponents of capital punishment.” It is “highly unusual for the Supreme Court to stop an execution at the last minute,” The New York Times said, and this aberration “potentially sets the stage for a broader legal battle over the constitutionality” of the controversial execution tool. 

    What next?
    Alabama is “prepared to do whatever is necessary” to see Lee’s “lawful sentence carried out,” state Attorney General Steve Marshall said. Lee’s legal team urged Gov. Kay Ivey (R) to “restore the jury’s verdict of life without parole,” which the trial judge overruled using a since-abolished override option.

     
     

    It’s not all bad

    China has activated the world’s first wind-powered underwater data center, a project designed to cut the soaring energy needs of artificial intelligence. The facility, submerged 33 feet below the sea off Shanghai, uses energy from a wind farm and seawater for natural cooling, reducing power consumption by more than 20% compared with conventional data centers. Supporters say the technology could help reduce electricity and fresh water demand amid growing global demand for AI infrastructure.

     
     
    Under the radar

    A hot pepper shortage is rattling the Caribbean

    “As pervasive as ketchup” on fries, hot pepper sauce is an “obligatory accompaniment” for Caribbean cuisine, said the BBC. But a shortage of the fiery-flavored condiment is leaving taste buds unfulfilled in the Caribbean, as well as the U.S., Australia, Britain and other countries where consumers have developed a liking for its sweet, smoky punch.

    It’s all about the main ingredient: Scotch bonnet, a scorching hot chilli pepper with an intense, fruity flavor. The plant is susceptible to “heavy rain and viruses,” the BBC said, and having been “walloped” by recent hurricanes, harvests have become devastatingly poor.

    “From Jamaican jerk chicken to Haitian beef stew,” the Scotch bonnet pepper is a “foundational element” of Caribbean cuisine, said Chowhound. Not only does it pack a punch, but it also adds “sweetness and an unmistakable scent,” plus a “smoky, recognizable spiciness” that has been successfully marketed worldwide. But now it’s “particularly hard to source,” said the BBC.

    The Scotch bonnet shortage, blamed by many on climate change, “may be lasting,” said Semafor. And that could change the agricultural landscape of the Caribbean. Continually disappointed by the “temperamental” Scotch bonnet, many producers are instead turning to “hardier crops,” including sweet potatoes, to make a living.

    Some parts of the Caribbean do seem to have escaped unscathed, though. The island of Barbados has been “marked ‘safe’” from the hot pepper shortage, said Barbados Today. Its crops remain “resilient, pest-free and available for production.”

     
     
    On this day

    June 12, 1991

    Mount Pinatubo in the Philippines began erupting, with large columns of ash and rock bursting out of the long-dormant volcano. Three days later, the volcano exploded in the second-largest eruption of the 20th century, leading to nearly 900 deaths. The Philippines is prone to natural disasters; the latest, a magnitude 7.8 earthquake, struck last weekend.

     
     
    TODAY’S newspaperS

    ‘Trump pivots’

    “Trump, pivoting again, calls off new barrage, claiming deal is near” on Iran, The New York Times says on Friday’s front page. “After Pulte rift, Trump pivots on intel pick,” The Washington Post says. “Trump is angling for a vote to void his impeachments,” The Wall Street Journal says. “UFC set to rumble at White House,” says USA Today. “Soccer vs. angst as World Cup begins,” the Los Angeles Times says. “The World Cup is finally here, so it’s party time!” says The Atlanta Journal-Constitution. “USPS may block ballot delivery,” the Milwaukee Journal Sentinel says. “El Niño has arrived, may stir extreme weather in much of U.S.,” says The Palm Beach Post.

    ► See the newspaper front pages

     
     
    Tall tale

    Grounded for a fake ID

    An Air Canada pilot flew passengers around the world without the proper license for 17 years. The unidentified man, who worked for the Canadian carrier from 1998 to 2025, forged his airline transport pilot license when he was promoted to captain in 2009, Ontario police said. An investigation was launched last year after discrepancies were discovered during a routine evaluation. The ex-pilot was charged on June 1 with fraud and public mischief. Passenger safety was “not compromised by this incident,” Air Canada said.

     
     

    Morning Report was written and edited by Nadia Croes, Rebekah Evans, Catherine Garcia, Scott Hocker, Anya Jaremko-Greenwold, Justin Klawans, Rafi Schwartz, Peter Weber and Kari Wilkin, with illustrations by Stephen Kelly and Julia Wytrazek.

    Image credits, from top: Michael Nagle / Bloomberg / Getty Images; Charly Triballeau / AFP via Getty Images; Kim Chandler / AP Photo; Illustration by Julia Wytrazek / Getty Images
     

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