Keurig Dr Pepper is making a coffee megadeal that flips its growth strategy. European markets are cooling fast, and surprise political news out of California could ripple beyond the Golden State.

Keurig Dr Pepper announced an $18 billion all-cash deal to acquire JDE Peet’s, marking a retreat from its 2018 merger and splitting into two entities: one focused on North American beverages, the other on global coffee. The move is designed to unlock $400 million in cost synergies and immediate earnings boost. Shares of JDE Peet’s jumped 17%, while Keurig fell a few points premarket as investors parsed the impact on margins and strategy.

Europe hit a pause today. Pan-European indexes reversed earlier gains, negative bond yield movement and disappointing sentiment data prompted the pullback. The pace is softening, suggesting tailwinds from Fed optimism may not be globally sweeping, especially with inflation data ahead this week.

In politics: tech entrepreneur Ethan Agarwal is officially running for California governor. He's positioning himself as a capitalist outsider, with Silicon Valley backing and a platform centered on infrastructure reform and affordable energy. Got California’s election attention ... and maybe Wall Street’s too.

Markets are recalibrating today. Coffee just got corporate again. Europe is cautioning vs. euphoria. And a political pivot is brewing, thanks to a tech-savvy governor hopeful. Watch closely: the next moves aren’t obvious, but they're forming now.