Source: CNBCTV18
OPEC+ is considering accelerating production increases further by discussing a potential hike of more than 411,000 barrels a day in July at a meeting on Saturday as the group seeks to recoup lost market share, according to people familiar with the matter.
Eight key members of the Organization of the Petroleum Exporting Countries and its partners are due to hold a video conference on Saturday to discuss output levels in July.
They stunned oil markets in April by announcing an increase of 411,000 barrels a day that was three times the volume planned, even as markets faltered amid slowing demand. The increase, which briefly dragged crude prices to a four-year low below $60 a barrel, was repeated at the same level the following month.
A strong jump in tariff-driven exports fueled Canada’s growth at the start of this year, offsetting domestic weakness in other parts of the economy.
Gross domestic product grew at an annualised pace of 2.2%, up slightly from 2.1% at the end of last year, Statistics Canada said Friday. The expansion exceeded even the most optimistic economist’s projection in a Bloomberg survey and was above the Bank of Canada’s forecast for a 1.8% increase.
Preliminary data also suggests some continued momentum at the start of the second quarter, with output rising 0.1% in April, led by mining, oil and gas, and finance industries. March’s growth of 0.1% — which matched expectations — was also driven by resource extraction sectors.
The European Central Bank is escalating its scrutiny of lenders’ exposures to private markets amid concerns that the fast ascent of related asset classes raises substantial new risks.
The watchdog has signaled that it’s sending letters to executives at certain banks cautioning them on their practices in financing private funds, according to people familiar with the matter.
In another indication of the ECB’s determination, it plans to conduct on-site investigations on the matter at several major European banks, the people said. The regulator’s staff recently visited Societe Generale SA in one of the first such exercises, they said.
President Donald Trump accused China of violating its preliminary trade deal with the U.S.
“China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!,” Trump said in a Truth Social post.
The personal consumption expenditures price index was expected to show a 2.2% annual rate in April, according to the Dow Jones consensus forecast.
Stock futures fell Friday morning after President Donald Trump said China violated its preliminary trade agreement, reigniting fears that the U.S. could enter a global trade war.
Futures tied to the Dow Jones Industrial Average lost 174 points, or 0.4%. S&P 500 futures and Nasdaq-100 futures each slid 0.6%.
Futures took a leg down on Friday morning after Trump claimed in a social media post that China “violated” its current trade agreement with the U.S. That comes after Treasury Secretary Bessent said in a Fox News interview that U.S.-China trade talks “are a bit stalled.”
US Treasuries are on track to deliver their first monthly loss this year, buffeted by renewed tariff uncertainty and growing anxiety over mounting levels of government debt.
A Bloomberg index that tracks the bonds is down more than 1.2% in May after all maturities came under pressure. The 30-year yield rose for a third consecutive month, its longest losing streak since 2023, while yields on two- and 10-year tenors posted their first monthly increase this year.
The poor monthly performance reflects the growing headwinds Treasuries face as the US administration’s unpredictable policies shake investor confidence. May saw a resurgence in worries over the US budget deficit as Donald Trump wrestles with Congress over a bill that promises to cut taxes.
New World Development Co. said that it plans to defer coupon payments due in June on perpetual bonds, as a deadline neared for the cash-strapped builder to notify holders of its decision.
The company said it has notified all holders of two perpetual securities with scheduled coupon payments on June 9 and June 10 that it has elected a deferral, according to a Friday filing to the Hong Kong Stock Exchange. It added that it intends to defer payments on two other bonds originally scheduled later next month.
China plans to allocate 500 billion yuan ($70 billion) of capital that could be leveraged up to fast-track new infrastructure projects as authorities seek to cushion the economy from US tariffs, according to people familiar with the matter.
Under the so-called “new financing policy tool,” the nation’s three policy banks will raise funds and buy stakes in projects, one of the people said, asking not to be identified discussing a private matter. The policy lenders may issue bonds or use other methods to tap financing, according to the person.
The initial capital injection of 500 billion yuan could amplify total investments by multiple times that amount, since it allows the projects to raise additional bank loans or other forms of financing, the person said.
Elon Musk attempted to scuttle a major AI infrastructure deal in the UAE after being excluded from the project, deepening his rivalry with OpenAI’s Sam Altman and complicating President Trump’s efforts to cement American AI dominance.
The Stargate AI campus — a joint venture involving OpenAI, Oracle, Nvidia, Cisco and Emirati firm G42 — was delayed after Musk intervened, claiming Trump would not support a deal that sidelined his xAI startup. Sources say the White House fielded backlash from Musk, who has become a polarising figure in Trump’s AI agenda.
Musk, who co-founded OpenAI but has since become one of its fiercest critics, was reportedly frustrated by Altman’s central role in the Stargate project. He has filed a lawsuit against OpenAI, questioning its for-profit shift and Microsoft ties, while his investor group’s $97.4bn takeover attempt failed earlier this year.
Despite his protestations, Musk was not in the UAE for the signing. He had been travelling with Trump in Saudi Arabia, and a senior official confirmed Musk had raised fairness concerns over how AI companies were being treated.
The feud has complicated Trump’s Middle East tech diplomacy. While the White House hailed the deal as a landmark US-UAE AI partnership, Musk’s involvement highlights growing frictions within America’s AI elite — and their global implications.
Donald Trump is preparing to ramp up US weapons sales to Taiwan beyond levels seen in his first term, as part of a broader strategy to deter China’s growing military assertiveness, Reuters reports. US officials expect arms approvals over the next four years to “easily exceed” the $18.3bn sold during Trump’s previous presidency.
Washington is also pressing Taiwan’s opposition parties not to obstruct plans to raise defence spending to 3% of GDP. The US has warned that its urgency cannot exceed Taipei’s own, urging local lawmakers to back a forthcoming special defence budget.
New weapons packages are likely to focus on missiles, drones and munitions — affordable assets aimed at strengthening Taiwan’s resilience against a potential Chinese invasion. While Trump has questioned Taiwan’s financial contributions in the past, US officials now insist his team is committed to “enhancing hard deterrence”.
Despite lacking formal diplomatic ties, the US remains Taiwan’s most important security partner. However, any further arms deals are expected to inflame tensions with Beijing, which claims the self-governed island as its own.
A trade court ruling may have halted key Trump-era tariffs, but many remain in place — and they still pack a punch. Yale Budget Lab estimates the average US household will lose $950 in purchasing power this year due to duties on steel, aluminium and cars, even if the court block holds.
Tariffs targeting specific countries were ruled unlawful this week, though an appeals court has paused that decision for now. The Trump administration is also eyeing new levies on pharmaceuticals, semiconductors, copper and lumber.
Economist Ernie Tedeschi said the court ruling, if upheld, could save households over $1,800 this year — but stressed the tariff battle is far from over.
Trade talks between the US and China have hit a standstill, with Treasury Secretary Scott Bessent urging direct intervention from Presidents Trump and Xi. Despite a May breakthrough in Switzerland that paused tariff hikes for 90 days, tensions persist as Washington tightens tech restrictions and Beijing holds firm on rare earth exports.
Bessent said a call between the two leaders may be needed to move talks forward, stressing their “very good relationship.” However, analysts believe China is unlikely to engage without assurances of no unexpected moves from the US.
Beijing has criticised recent US actions, including chip curbs and student visa revocations, accusing Washington of ideological posturing. While both sides maintain diplomatic contact, the path to a durable trade truce remains uncertain.
A sweeping new US tax bill is shaking global markets, threatening to hit foreign investors with sharply higher levies. The “One Big Beautiful Bill Act,” which passed the House and now awaits Senate approval, includes Section 899 — a controversial provision aimed at countries deemed “discriminatory” towards American firms, such as those imposing digital services taxes.
If passed, Section 899 would hike taxes on US income earned by investors from those countries by 5 percentage points annually, potentially reaching 20%. Analysts warn the move effectively weaponises the US tax code, turning capital markets into a new front in Washington’s trade war strategy.
Legal and financial experts say the bill could dampen foreign appetite for US assets, especially Treasuries, with implications for dollar strength and funding America’s deficit. European firms like Compass Group and InterContinental Hotels, and even foreign central banks, could see returns squeezed. The bill’s final form remains uncertain as it heads to the Senate, where significant amendments are expected.
Sanofi’s shares fell following mixed results of its experimental drug for a deadly lung condition.
Itepekimab, a medicine that is being jointly developed by Sanofi and Regeneron, is being tested as a treatment for chronic obstructive pulmonary disease in former smokers. Two late stage trials showed contrasting results, Sanofi said Friday, with one showing a reduction in worsening of the condition — called exacerbations — of 27%. The other trial didn’t show the same benefit despite having shown it earlier in the study.
Sanofi’s shares fell as much as 7% in Paris trading. They are down about 2% since the start of the year. Shares in Regeneron fell as much as 11.6% in premarket trading on Friday.
Israel has accepted a US ceasefire proposal for Gaza that Israeli officials familiar with the matter said would involve a 60-day pause in the fighting and restore United Nations-led aid distribution to the Palestinian territory.
Yet there’s still no sign an end to the almost 20 month war in Gaza between Israel and Hamas is imminent. While Hamas hasn’t officially responded, it criticized the proposal as one-sided late on Thursday.
The White House said that Israel signed off on the offer before it was submitted to Hamas but didn’t say what was in it. Two Israeli officials confirmed that decision.
Chinese automakers captured the biggest share of Europe’s electric-vehicle market in nine months, regaining ground lost after the European Union imposed tariffs last year.
Manufacturers led by by BYD Co. grabbed 8.9% of the region’s EV market in April, the most since July, according to researcher Dataforce. Chinese hybrid and combustion models also gained traction.
The latest figures underline the potent and evolving challenge Chinese manufacturers pose to European rivals. While EU duties that took effect in November initially halted Chinese EV gains, the past two months show renewed momentum. BYD, MG and others have also ramped up sales of more-conventionally powered models, adding to the pressure.
European stock markets broadly moved higher despite U.S. tariffs being re-imposed by U.S. courts.
The Stoxx Europe 600 index is up 0.1%, the FTSE 100 added 0.4% and Germany’s DAX is higher by 0.3%. Meanwhile, France’s CAC 40 bucked the trend by declining 0.2% in early trade.
Chinese stocks fell in Hong Kong on Friday, after US Treasury Secretary Scott Bessent said trade talks between the world’s two largest economies are “a bit stalled.”
The Hang Seng China Enterprises Index dropped as much as 2.1%, led by technology and electric-vehicle firms.
The latest comments by Bessent, who also said a call between President Donald Trump and his counterpart Xi Jinping may be needed to reach a trade deal, injected fresh uncertainties into markets following a brief surge of optimism induced by the tariff truce earlier this month. The selling also followed signs of renewed tensions after the Trump administration announced it would start revoking Chinese student visas and introduce new restrictions on certain tech exports to China.
More South Korean stocks are hitting their 52-week high than at any other point in recent years, reflecting hopes for corporate reform and diversification in the market’s gainers beyond semiconductor heavyweights.
Even though the benchmark Kospi Index is still more than 6% away from its highest point in the last year, 91 members climbed to their 52-week high on Thursday, according to Bloomberg-compiled data. That’s the highest one-day tally since May 2021, when Kospi was heading toward its all-time high.
The findings underscore investors’ growing interests beyond the Korean tech heavyweights, such as Samsung Electronics Co., that historically drove the market’s performance.
President Donald Trump’s administration insists his tariffs are here to stay, one way or another.
The White House spent Thursday triaging the fallout from a pair of rulings that suspended the bulk of his tariffs, imposed under an emergency authority that the courts say he overstepped. A federal appeals court temporarily paused that decision in order to hear arguments, though it could ultimately back the original ruling and block Trump’s tariff policy.
While Trump has vowed to appeal all the way to the Supreme Court if needed, the message from his top aides has been that the president will not be denied his tariff push, and would simply turn to other authorities if needed.
President Donald Trump is planning to ramp up weapons sales to Taiwan to a level exceeding the pace set during his first term, Reuters reported, a move that risks escalating military tensions with China at a time the two nations are already locked in difficult talks over tariffs.
Two US officials familiar with the matter said they expect US approvals for arms sales to Taipei over the next four years to surpass those in Trump’s first term, according to a Reuters report Friday. New weapons packages are expected to focus on missiles, munitions and drones.
Trump’s first term was marked by 22 military sales notifications for Taiwan valued at $18.65 billion, including backlogged cases and funding for maintenance of existing systems, compared to about $8.7 billion during the Biden administration, according to a 2024 report from the Cato Institute.
Prices in Tokyo jumped the most in two years on surging food costs, keeping the Bank of Japan on track for another rate hike in coming months.
Consumer prices excluding fresh food rose 3.6% in the capital in May from a year earlier, accelerating from 3.4% in April, the Ministry of Internal Affairs said Friday. The increase, which outpaced economists’ median forecast of a 3.5% gain, was the biggest since January 2023. Overall inflation came to 3.4%, matching a revised 3.4% in April.
The readings were partly distorted by policy-related factors, including the fading impact of last year’s school fee cuts. While Tokyo’s CPI figures serve as a leading indicator for national inflation trends, the high school subsidies were in effect only in the capital.
Oil was on track for a second weekly decline ahead of an OPEC+ meeting on output policy that’s expected to lead to another supply hike.
Brent slipped below $64 a barrel after dropping 1.2% on Thursday, while West Texas Intermediate traded near $61. A sub-group led by Saudi Arabia is set to meet on Saturday to decide on July production levels, with preliminary talks last week discussing a third consecutive supply increase.
“Investors are eagerly waiting for OPEC’s meeting on Saturday to shed light on the scale of the output hike,” said Priyanka Sachdeva, a senior market analyst for brokerage Phillip Nova Pte in Singapore. “Oil markets should brace for more volatility with risks skewed to the downside.”
Gold recovered some heavy losses sustained earlier this week, as markets were once again rattled by uncertainties around US President Donald Trump’s global tariffs agenda and the strength of the US economy.
The precious metal traded near $3,314 an ounce, following a gain of nearly 1% on Thursday after a federal appeals court offered Trump a temporary reprieve from a ruling threatening to throw out the bulk of his tariff agenda. A weakening dollar also helped, driven by growing fiscal risks and renewed political pressure on the Federal Reserve to lower interest rates.
Disappointing data on Thursday showed that the US economy shrank at the start of the year, due to weaker consumer spending and an even bigger impact from the trade war than initially reported.
The US Securities and Exchange Commission moved to end its legal battle against crypto exchange Binance Holdings Ltd., the latest sign of the regulator’s dramatic shift in how it polices cryptocurrency.
The regulator and the exchange’s co-founder Changpeng Zhao filed a joint motion on Thursday to stay the case in the US District Court for the District of Columbia. The move follows a joint request in February to pause the lawsuit for 60 days.
At the time, the SEC and Zhao said then-Acting Chairman Mark Uyeda’s formation of a special agency task force to set crypto regulatory policy warranted a pause. The task force’s work could impact the lawsuit’s resolution.
Japanese life insurers cut protection for their foreign assets against a stronger yen to a fresh 14-year low, signaling subdued expectations of a sustained rally in the nation’s currency.
Nine of Japan’s biggest life insurers collectively lowered bullish yen wagers tied to their foreign investment holdings to 44.4% at the end of the fiscal half in March from 45.2% six months earlier, according to a Bloomberg News analysis of their earnings reports.
While the Trump administration’s unpredictable policy making has stoked foreign exchange market volatility, that wasn’t enough to stop a three-year decline in yen hedging. The Bank of Japan’s policy interest rate is still 3% points lower than the nation’s inflation rate, with the next potential hike seen further delayed.
US Treasury Secretary Scott Bessent said trade talks with China are “a bit stalled,” and that a call between President Donald Trump and Chinese President Xi Jinping may be needed for the world’s two largest economies to reach a deal.
“I would say that they are a bit stalled,” Bessent said of the talks in an interview with Fox News Thursday.
Bessent, who travelled to Switzerland earlier this month for talks with Chinese officials that saw both sides retreat from tariffs over 100% on each other’s goods, said he believes more talks will happen with Chinese officials “in the next few weeks.” Still, Bessent said he sees the personal involvement of both country leaders as essential.
A federal appeals court offered President Donald Trump a temporary reprieve from a ruling threatening to throw out the bulk of his sweeping tariff agenda, giving at least some hope to a White House now facing substantial new restrictions on its effort to rewrite the global trading order.
The administration celebrated the order from the US Court of Appeals for the Federal Circuit as validating its vow to aggressively challenge a ruling issued Wednesday night by the Court of International Trade blocking sweeping parts of Trump’s tariffs over his use of the International Emergency Economic Powers Act, or IEEPA.
Trump hailed the appeals court ruling in a social media post on Thursday night, while calling the original decision “so wrong and so political!” He claimed that seeking congressional approval for tariffs would hinder his trade agenda and “completely destroy Presidential Power.”
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