General Market News

The Supreme Court will hear a case Monday involving Bayer's Roundup weedkiller, with the Trump administration backing the company's bid to limit lawsuits claiming the product causes cancer. A Reuters/Ipsos poll of 4,557 U.S. adults found 78% are concerned about pesticides in food crops, and 63% oppose shielding companies from lawsuits over cancer-causing products, even with warnings. The administration's position has alienated some Trump supporters in the Make America Healthy Again movement ahead of November midterm elections.

• Bayer is appealing a $1.25 million jury verdict from a plaintiff who developed non-Hodgkin lymphoma after exposure to glyphosate, seeking to shut down tens of thousands of lawsuits over Roundup's active ingredient
• Bipartisan concern spans party lines: 81% of Democrats, 78% of Republicans, and 77% of independents expressed worry about pesticide use in crops, with 79% also concerned about chemicals and food additives
• MAHA activists plan a Monday rally outside the Supreme Court and warned the White House that continued support for Bayer could cost Republican votes in the midterms, despite Trump's previous executive order to boost domestic glyphosate production

China plans to restrict leading technology firms, including major AI startups, from accepting U.S. investment without prior government approval, according to Bloomberg News. This move would significantly tighten Beijing's control over foreign capital flows into its strategic tech sector. Reuters has not independently verified the report.

• The restrictions would require Chinese tech companies to obtain government approval before accepting U.S. capital, adding a new layer of regulatory oversight
• Leading AI startups are specifically included among the firms that would face these investment restrictions
• The measure represents China's continued effort to control foreign influence in strategic technology sectors amid ongoing U.S.-China tensions

The oil tanker HELGA arrived at Iraq's Basra port on Friday to load 2 million barrels of crude, becoming the second vessel to reach the terminal since the Strait of Hormuz closure. This follows the Malta-flagged Agios Fanourios I, which successfully loaded a similar amount earlier this month after transiting Hormuz during a U.S.-Iran ceasefire.

• HELGA is loading 2 million barrels of crude at Basra's offshore terminals, sailing under the Comoros flag
• Only two tankers have reached Basra's southern terminals since the Strait of Hormuz was closed, severely limiting Iraq's oil export capacity
• The previous tanker entered the Gulf via Hormuz on a second attempt during a temporary U.S.-Iran ceasefire

China's Commerce Ministry announced an immediate ban on dual-use exports to seven European entities, including German firm Hensoldt AG and Belgian manufacturer FN Browning, in retaliation for their arms sales to Taiwan. The ban applies to goods with both civilian and military applications, such as rare earth elements used in drones and chips. China stated the measures target only specific entities and should not affect broader EU-China trade.

• Seven European defense firms are banned from receiving Chinese dual-use items for participating in Taiwan arms sales or 'colluding with Taiwan'
• The ban covers dual-use goods including rare earth elements essential for manufacturing drones and semiconductors
• China notified the EU through bilateral dialogue channels and emphasized law-abiding European entities have 'absolutely no need to worry'

Countries worldwide are implementing or considering restrictions on children's social media access, with Australia leading by banning access for those under 16 in December 2024. Over 20 countries across Europe, Asia, and Latin America are now pursuing similar age-based bans ranging from 13 to 16 years old. The movement reflects growing concerns about online bullying, mental health risks, and addictive platform features affecting minors.

• Australia's landmark law, effective December 10, 2025, carries penalties up to A$49.5 million ($35.3 million) for non-compliant platforms
• European countries including France, Spain, Portugal, Greece, Norway, and Poland are pursuing bans with minimum ages between 13-16, while the EU Parliament called for harmonized age limits
• Asian nations including India (state-level in Karnataka), Indonesia, and Malaysia are implementing restrictions, with China already requiring device-level 'minor mode' controls
• Tech platforms like TikTok and Snapchat currently require users to be at least 13, but advocates say controls are insufficient as official data shows large numbers of underage accounts exist

AI is rapidly moving from influencing to making payment decisions, creating urgent governance challenges for financial institutions. The primary risk lies not in AI models themselves, but in the fragmented systems and gaps between platforms where accountability breaks down. Success requires continuous governance discipline, unified architecture, and maintaining human oversight over increasingly autonomous AI systems.

• AI adoption in payments is accelerating faster than governance frameworks, with agentic AI systems now able to perceive, reason, and act autonomously within defined parameters
• Fragmented legacy systems create governance failures in the gaps between platforms rather than at the model level, requiring customer-centric, product-agnostic architecture for effective AI control
• Fraud prevention exemplifies the challenge: institutions must balance minimizing friction with maximizing fraud capture while maintaining transparency, consent, and traceability in real-time automated decisions

India's Central Bureau of Investigation has launched a bribery probe involving Asteria Aerospace, a drone technology unit of Reliance Industries controlled by billionaire Mukesh Ambani. The investigation alleges that a Reliance executive and an aviation watchdog official arranged $16,000 in bribes to secure approvals for drone imports. Reliance has denied authorizing or having knowledge of such transactions.

• Asteria Aerospace, acquired by Reliance for $2.45 million in 2019, saw revenue surge from $117,000 in fiscal 2020 to $4.24 million in fiscal 2024, operating over 400 drones across agriculture, construction, telecom, and energy sectors
• The alleged bribery involved $16,000 to process three applications for drone imports, with authorities arresting officials from both Reliance Industries and India's aviation safety watchdog
• The probe comes as Reliance Jio Platforms, which controls 74% of Asteria, prepares for what could be India's biggest-ever IPO, putting scrutiny on the conglomerate at a critical time

South Korea became the third-largest buyer of U.S. stocks in 2025, net purchasing $73.6 billion—nearly five times more than in 2024—despite its domestic KOSPI index delivering 75% returns. The surge is driven primarily by retail 'ant investors' seeking higher returns and greater confidence in U.S. equities over domestic alternatives.

• South Korea ranked third globally in U.S. stock purchases in 2025 (behind Singapore and Norway), with retail investors accounting for 60-70% of trading volume and driving most outflows
• The S&P 500 has outperformed the KOSPI in four of the past five years, with individual investors' foreign asset holdings nearly quadrupling since 2020
• Government tax incentives to encourage domestic investment have shown limited success, as South Korea remained the largest net buyer of U.S. stocks in early 2026 at nearly $10 billion

Canadian AI lab Cohere announced plans to acquire German AI startup Aleph Alpha to expand its European presence. As part of the deal, Schwarz Group, a major Aleph Alpha backer, will invest $600 million in Cohere's upcoming Series E funding round expected to close in 2026. The acquisition aims to strengthen Cohere's sovereign AI offerings for highly-regulated sectors across Europe.

• Cohere, valued at $7 billion in 2025, has raised $1.6 billion from investors including Nvidia and AMD since its 2019 founding
• The deal provides Cohere access to Germany's economy and Aleph Alpha's existing government contracts, including with German federal ministries and regional governments
• Aleph Alpha, founded in 2019, raised over $600 million and pivoted from building large language models to developing AI applications for regulated sectors like public sector, finance, defense, and healthcare

Caocao Inc, the ride-hailing unit of Chinese automaker Geely Holding Group, plans to deliver and deploy thousands of fully customized robotaxis globally in 2025. The company aims for large-scale deployment by 2028 and expects to expand its fleet to 100,000 robotaxis by 2030.

• Initial delivery of Geely-made purpose-built robotaxis will begin next year (2025) with thousands of units deployed globally
• Large-scale commercial deployment is targeted for 2028, with fleet expansion to 100,000 robotaxis planned by 2030
• The announcement was made by CEO Gong Xin at the Beijing auto show, signaling Geely's push into autonomous mobility services

European stock markets are set to open lower on Friday as optimism over U.S.-Iran peace talks fades. President Trump declined to provide a timeline for ending the conflict, while U.S. forces reportedly boarded another tanker carrying Iranian oil. Oil prices edged higher with Brent crude reaching $105.44 per barrel.

• Pan-European Stoxx 50 futures down 0.6%, with FTSE 100 and CAC 40 futures down 0.8% and 0.6% respectively before London market open
• Brent crude futures rose 0.4% to $105.44 per barrel, while WTI futures climbed to $95.88 amid Middle East tensions
• Investors await corporate earnings from Eni, Orange, Volvo, and Renault, plus economic data including U.K. retail sales and German Ifo Business Climate figures

UK retail sales increased 0.7% in March 2026, significantly exceeding economist expectations of 0.1% growth. The figures represent the first official data on retail performance following the outbreak of the Iran war, which has elevated fuel prices and raised concerns about broader inflation and economic slowdown.

• Sales growth of 0.7% substantially beat the Reuters poll consensus forecast of just 0.1% monthly increase
• Consumer confidence fell to its lowest level since October 2023 in March, with the biggest month-over-month drop in a year according to GfK's index
• Major retailers including Tesco and Sainsbury's report no meaningful changes in consumer behavior yet, though clothing chain Next noted April trading has softened after an encouraging March

Japan is establishing a financial cybersecurity task force in response to concerns about Anthropic's Mythos AI model, which has uncovered thousands of major vulnerabilities across operating systems and web browsers. Finance Minister Satsuki Katayama convened a meeting with regulators, the central bank, and major financial institutions to address what she called 'a crisis that is already at hand.'

• Anthropic's Mythos AI preview identified thousands of major vulnerabilities across all major operating systems and browsers, raising fears the model can exploit flaws faster than companies can patch them
• The task force includes Japan's Financial Services Agency, Bank of Japan, National Cybersecurity Office, the country's top three banks, and Japan Exchange Group
• Japan's finance minister warned that the financial system's high interconnectedness and real-time operations mean cyberattacks could rapidly spread and cause market disruptions, though no breaches related to Mythos have been reported yet

Chinese AI startup DeepSeek began previewing its fourth-generation model (V4) on Friday, offering pro and flash versions as its most significant update since the low-cost V3 model gained global attention in December 2024. The rollout is being closely watched as a test of China's ability to scale advanced AI using domestic chips, reportedly including Huawei hardware, amid US export controls on Nvidia technology.

• DeepSeek has not disclosed pricing, detailed performance benchmarks, or a final release date, describing the preview as an early-stage rollout to gather feedback before wider deployment
• The V4 model will reportedly run on Huawei's latest chips, making it a significant test of whether China's AI ecosystem can advance using locally sourced infrastructure instead of restricted Nvidia hardware
• The dual pro and flash versions indicate DeepSeek is targeting both high-end use cases and lighter, faster deployment to reach a broader range of developers and enterprise customers

Rising fossil fuel prices from the Iran war are squeezing Asia's polyester suppliers, forcing production cuts at Indian and Bangladeshi textile mills that supply major fast-fashion retailers like Zara, H&M, and Primark. Polyester feedstock costs have surged nearly 30%, threatening to raise prices across the clothing supply chain, though retailers are temporarily shielded by forward buying contracts.

• Indian polyester yarn producers face 30% higher costs for petroleum-derived feedstocks (PTA and MEG), with polyester fiber prices jumping from 100 to 120 rupees per kilogram since late February
• Surat textile mills have slashed production by up to 65% (from 10,000 to 3,500-4,000 meters daily) and increased weekly shutdowns, with suppliers warning of 15% price hikes that customers may reject
• Bangladesh thread supplier Coats announced 15.5% price increases effective April 15, while sneaker manufacturers face rising costs for 25 petrochemical-based components including EVA foam and synthetic rubber

Donald Trump threatened to impose a 'big tariff' on the UK unless it drops its digital services tax, which applies a 2% levy on revenues of major US tech companies. The tax, introduced in 2020, targets firms with global digital revenues exceeding £500m and over £25m from UK users. The threat adds further strain to UK-US relations already tested by disagreements over the Iran war.

• The UK's digital services tax imposes a 2% levy on major tech firms with worldwide digital revenues over £500m and UK revenues exceeding £25m
• Trump warned the UK to 'be careful' and said any retaliatory tariff would be 'equal or greater than' what the US loses from the tax
• The digital tax remained unchanged in the May 2025 UK-US trade deal, though Trump indicated terms 'can always be changed'; similar taxes exist in France, Italy, and Spain

Huawei Technologies announced on Friday that its Ascend supernode, powered by Ascend 950 AI chips, will fully support Deepseek's V4 model versions. The announcement follows the Chinese AI startup's preview launch of its new model, demonstrating continued collaboration between major Chinese tech players in artificial intelligence development.

• Huawei's Ascend supernode is based on the company's Ascend 950 AI chips
• The support comes after Deepseek, a Chinese AI startup, launched a preview of its new V4 model
• The partnership highlights ongoing efforts by Chinese tech companies to advance domestic AI infrastructure and capabilities

The Trump administration's proposal to make quarterly earnings reporting optional for U.S. public companies faces skepticism from investors who warn that firms abandoning quarterly reports could face valuation penalties and portfolio downgrades. While proponents argue semiannual reporting would reduce costs and allow longer-term focus, major investors including Citadel and Fidelity caution it could increase volatility and cost of capital. Most analysts expect the vast majority of established companies to continue quarterly reporting despite the option to reduce frequency.

• Major investors warn companies switching to semiannual reporting risk being 'downsized or removed from portfolios' or having valuations reconsidered due to reduced transparency
• JPMorgan Chase stated it would continue quarterly reporting and guidance despite supporting the proposal, while smaller companies and IPO candidates may be more likely to adopt less frequent reporting
• The number of publicly traded U.S. companies has declined from 8,800 in the late 1990s to approximately 4,200, with proponents arguing reduced reporting requirements could help reverse this trend

Swiss National Bank Chairman Martin Schlegel warned that prolonged energy price shocks from ongoing conflict could drive inflation higher and dampen economic growth in Switzerland. He stated it is too early to assess stagflation risk, but second-round price effects would require central bank intervention. Schlegel also defended stricter capital requirements proposed for UBS.

• The impact on inflation and growth depends on conflict duration and whether energy prices remain elevated; temporary shocks can be overlooked, but prolonged pressure requiring second-round price effects would necessitate SNB action
• Switzerland is in a relatively solid position with low inflation before the Middle East conflict and better-than-expected global economic performance, though energy costs indirectly affect many goods including food, transport, and packaging
• Schlegel defended tougher capital rules for UBS as 'not extreme' and downplayed concerns about the bank relocating abroad, stating capital requirements are only one factor in location decisions

Traditional financial market correlations have broken down since the outbreak of a Middle East war, leaving investors without reliable signals for trading strategies. Classic relationships between stocks, bonds, currencies, and commodities that typically indicate economic trends have become erratic or reversed. Experts warn the disruption could persist for three to six months, requiring new approaches to risk management.

• The correlation between two-year Treasury yields and the S&P 500 collapsed to -0.8 from a five-year average of 0.23, as bonds failed to act as traditional hedges during simultaneous inflation and growth shocks
• Gold has lost its safe-haven status, falling 10% below pre-war levels and moving unusually closely with equities (correlation of 0.55 vs. five-year average of 0.22), while bitcoin's correlation to stocks hit a record 0.96
• The euro remains near $1.17 despite expectations of two ECB rate hikes versus a Fed cut, breaking the normal relationship between interest rate differentials and currency movements