Today's Headlines

Bloomberg:

• Trump Blasts Germany Again as Merkel Talks Up India Ties. (video) President Donald Trump blasted Germany anew over trade and defense, ratcheting up a dispute with Chancellor Angela Merkel that risks getting personal and undermining a trans-Atlantic bond that is the bedrock of U.S.-European relations. Trump’s comments came in an early-morning tweet on Tuesday issued just as Merkel hosted Indian Prime Minister Narendra Modi in Berlin, where they held a joint cabinet meeting and signed cooperation agreements. Modi suggested that India will adhere to the Paris climate accords, while Trump makes up his mind.

• Fed's Brainard Says Soft Inflation May Warrant Rate Rethink. (video) Federal Reserve Governor Lael Brainard said soft inflation could cause her to reassess the path forward for monetary policy should it linger, even as the global economic outlook brightens and U.S. growth looks poised to rebound. “If the soft inflation data persist, that would be concerning and, ultimately, could lead me to reassess the appropriate path of policy,” Brainard said in prepared remarks Tuesday. She said her baseline expectation is that “it likely will be appropriate soon to adjust the federal funds rate” and start shrinking the balance sheet.

• The End of Cheap Chocolate? Cocoa Futures Surge Most on Record. Cocoa prices soared amid signs of tighter supplies in Ivory Coast, the world’s top grower, raising prospects that chocolate costs will climb. July futures jumped as much as 6.8 percent, the most ever for the contract. Farmers in West Africa are already locking in more forward sales for next year’s crop than traders were expecting, a sign that supplies from the current harvest are beginning to ebb.

Wall Street Journal:

• Fed Officials Likely to Raise Rates in June, Finalize Plans to Reduce Portfolio. A potential political fight over the U.S. budget could cause the Fed to rethink its plans for later in the year.

Fox News:

• North Korea eyed as US readies missile defense test. (video)

CNBC:

• The S&P 500 just did something that has meant gains 100 percent of the time. (video)

• Trump is threatening Europe...with the truth. (video)

• Electric vehicle demand to skyrocket, but won't kill gasoline just yet, says analyst.

• Breakout or head fake? Here’s what the bulls need to watch for.

Zero Hedge:

• Texas Democrat Threatens To Kill Republican On Legislative Floor After He Called ICE On Protesting Illegal Immigrants.

• Dallas Fed President: "A Stock Market Correction Could Actually Be A Healthy Thing".

• Is This The "Mystery" Massive Long Supporting The Oil Market? (graph)

• Trump Calls For Senate 'Nuclear Option' To Avoid Shutdown, Claims "Dems Would Do It".

• Time To Add Housing To The Bubble List?

• "Precarious" Debt Crisis "Could Reverberate Around The World".

• Consumer Confidence Drops To Weakest Since Feb As 'Soft' Data Slump Continues. (graph)

• Amazon(AMZN) Tops $1000 For First Time Ever, Bezos Up Over $19 Billion Year-To-Date.

• US Home Prices Rise At Fastest Pace In 3 Years To Record Highs. (graph)

• Personal Spending Growth Tumbles To 7-Month Lows After Dramatic Revisions. (graph)

• Trump Blasts Germany In First Tweet Of The Day.

• Deutsche Bank(DB) Downgrades European Banks To Underweight.

Business Insider:

• Steve Cohen reportedly is prepping the biggest hedge-fund launch ever.

• 17 remain in 'critical care' after Manchester terror attack.

• Ariana Grande, Coldplay, Justin Bieber, and Katy Perry to play benefit concert in Manchester on Sunday.

• Red-hot tech stocks are getting a boost from an unexpected source.