Good morning. In this edition:

• 🤔 The NATO spending debate
• 📝 Iranian strike assessment
• 🇬🇧 London’s secret tunnels

Ready, Set, Go: Today’s news should be a ~4.54-minute read (1,208 words).

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“Short cuts make long delays.”

–J.R.R. Tolkien (1892-1973)

President Trump flew to The Hague, Netherlands, yesterday for the annual summit of leaders from the 32 countries in the North Atlantic Treaty Organization (NATO).

It marks the first NATO event of his second term, with Trump expected to spend less than 24 hours on the ground before returning back to Washington.

Money talks

Trump admin officials say their goal heading into the summit is to push European leaders to increase their commitments to defense spending and “pay their fair share.”

• To that end, Trump is expected to announce a new NATO agreement at the summit that involves commitments from member nations to boost military spending to 5% of their GDP, up from the 2% goal NATO previously set in 2014.
• The sole exceptions to this deal are Spain, who remains committed to its 2.1% figure—and the US, which spends ~3.5% of GDP on defense.

American exception-alism: Trump has argued the US doesn’t need to meet the same defense spending goals as other NATO nations, since America already has a significant amount of infrastructure after supporting the military alliance for so long while other nations reallocated spending to other areas.

Zoom out: The NATO summit comes as the Israel-Iran ceasefire announced by President Trump on Monday appears to be holding steady, despite accusations that both sides had breached the truce by launching attacks after the deadline for peace.

• Israel’s government lifted nearly all wartime restrictions on civilian movement and economic activity yesterday, saying it had achieved its goals in the war by removing the “dual existential threat” posed by Iran’s nuclear and ballistic-missile programs.
• Meanwhile, Iran's foreign minister said his country will stop its attacks as long as Israel does, but added that a “final decision on the cessation of our military operations will be made later.”

📊 Flash poll: In general, do you agree with President Trump’s push to have NATO nations spend at least 5% of their GDP on defense?

• Yes
• No
• Unsure/other

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Sam Altman shocked the tech world in late May when his company, OpenAI, shelled out $6.5 billion in equity to acquire io, the one-year-old hardware design firm led by famed former Apple exec Jony Ive, designer of the iPhone.

And thanks to a trademark dispute lawsuit filed against the pair this month by iyO, a Google-backed hardware startup working to create an AI-powered in-ear headphone, we now have some information about the device Altman and Ive are cheffing up in the lab.

Io, iyO, off to court we go

In its suit, iyO argues OpenAI and io executives have been deeply researching in-ear hardware devices, and has submitted emails showing that it was in communication with leaders from the two companies, including Altman, some of whom even demo'd their product.

But…OpenAI says it disagrees with the complaint and is reviewing its options. Two io execs also made declarations to the court swearing that the first device they plan to release won’t be an “in-ear device” or a “wearable.”

So, what could it be? At a meeting in May, Altman and Ive told OpenAI staff to expect a smartphone- and- computer- complementary AI “companion” that could sit unobtrusively in your pocket or on your desk and be completely aware of what’s going on in your life, the Wall Street Journal reported—leading many speculate the device could end up looking something like a circular, hockey-puck, or even nail clippers or a vape.

Eli-oh no: Pixar experienced its worst-ever box office debut this past weekend, with sci-fi adventure film Elio earning just $21 million domestically—and $35 million globally—on a combined production and marketing budget of $250+ million.

It marks the latest disappointing release for the Disney-owned studio, which has found itself in a similar position to the “i” in its name after the leaping light animation.

The Pixar light flickers

With the notable exception of Inside Out 2—the highest-grossing animated film of all time—Pixar has struggled to maintain its dominance at the box office this decade compared to the 2000s (Finding Nemo, Monsters Inc., The Incredibles, Up, etc.) and 2010s (Incredibles 2, Finding Dory, Toy Story 3 & 4, etc.).

• The company’s highest-grossing film so far this decade (outside of Inside Out 2) is Elemental, which ranks 21st all-time among Pixar films.
• Luca (2021) and Turning Red (2022) were both released straight to Disney+, while Lightyear underwhelmed at the box office in summer 2022.

Meanwhile…Other animated or animated-adjacent films are turning in strong performances. Disney's Lilo & Stitch live-action remake secured the biggest domestic opening ever on Memorial Day weekend, while Universal’s live-action remake of How To Train Your Dragon has already earned ~$360 million globally across two weekends.

Mark your calendar and preorder the themed popcorn buckets: It’s about to be a Hot Hollywood Summer. Major releases this season include F1, Jurassic World Rebirth, The Fantastic Four: First Steps, and Superman.

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• 🍴 Three vegan/vegetarian meals/day
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BUSINESS & MARKETS

• 📝 US consumer confidence down in June, reversing an improvement in May.
• 🚗 NHTSA contacts Tesla following a series of social media videos that show the EV-maker’s robotaxis encountering issues in Austin; Tesla soft launched its robotaxi service in the Texas state capital on Sunday.
• 🗣️ Amazon announces same-day and next-day delivery coming to thousands of small towns and rural communities. | McDonald’s and Krispy Kreme to end their partnership on July 2.

SPORTS, MEDIA & ENTERTAINMENT

in partnership with MorningSave

• ⚖️ Justin Baldoni will not move forward with submitting amended claims against Blake Lively and Ryan Reynolds in their legal battle over It Ends With Us after judge grants motion to dismiss.
• 🗣️ Sean 'Diddy' Combs confirms he won't testify in his ongoing sex trafficking trial.
• 🏀 Game 7 of the NBA Finals was the most watched Finals game in six years, averaging 16.4 million viewers on ABC. | The 2025 NBA Draft takes place tonight at 7 pm CT. | NBA owners unanimously approve $1.5 billion sale of Minnesota Timberwolves and Lynx; it marks the end of a four-year saga.

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SCIENCE, SPACE & EMERGING TECH

• 🤖 Abridge, an AI startup that automates doctors’ note-taking, raised $300 million at a $5.3 billion valuation.
• 🛰️ Mysterious burst from outer space detected last year traced to defunct NASA satellite that’s been dead for 57 years.
• 🧠 GLP-1 drugs like Ozempic/Wegovy may lower the risk of developing dementia, new Case Western Reserve study indicates.

US, WORLD & POLITICS

in partnership with Arro

• 💥 US strikes against Iran set its nuclear program back by few months, initial US intelligence assessment finds (per multiple reports); the White House pushed back against the claims.
• 🇺🇸 Ongoing heat wave brings unusually hot, humid weather to ~160 million Americans across central and eastern US. | New York City mayoral primary heads to ranked-choice count after no Democratic candidate earns more than 50% of the vote; Assemblyman Zohran Mamdani leads with nearly 44% of the votes, former Gov. Andrew Cuomo concedes after receiving 36% of the votes.
• 🌲 Senate parliamentarian blocks proposal to sell ~3 million acres of federal land to address the housing crisis and raise funds for tax and spending bill. | Trump admin opens 58 million acres of national forest to road construction and development.

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☝️ The winning design for a new London memorial honoring Queen Elizabeth II was unveiled this week. It features a bridge with a jewel-like translucent balustrade inspired by the late queen’s wedding tiara.

🤔 Did You Know? Washington is the most popular town/city name across the US, with 88 such instances, followed by Springfield (41), Franklin (35), and Greenville (30).

📰 Worth a Read: Who swarmed Langley Air Force Base with drones?

🖱️ Clickbait: London's secret tunnels that helped inspire James Bond become spy museum and bar

🐣 Jackie and Shadow, a beloved pair of Big Bear eagles who have struggled to hatch any chicks since 2022, just welcomed their third and final hatchling of the year.

🥦🥕🪽 Joan Dye Gussow, often referred to as the matriarch of the “eat locally, think globally” food movement, recently passed away at 96 years old. However, her legacy and gardens live on—read her remarkable story here.

⚽️ 75-year-old Phil Crossley broke the world record for the longest career of a male soccer referee (58 years!).

+Note: These stories previously appeared in an edition of Positive DONUT, our weekly newsletter surfacing all the positive things you don't hear about in the news.

Can you name the only three animated movies to be nominated for Best Picture at the Academy Awards?

🌎 That’s cool: Google Earth rolled out a Street View time-travel feature in celebration of its 20th birthday.

📺 Read, and give thanks: How a $1 Million Contest Changed Binge-Watching Forever.

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*A message from our partners

1. Beauty and the Beast (1991)
2. Up (2009)
3. Toy Story 3 (2010)

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