Trending Market News

Treasury Secretary Scott Bessent predicts substantial disinflation is coming despite recent bad inflation data, with timing coinciding with Kevin Warsh taking over as Federal Reserve chair. Bessent expects one or two more hot inflation reports before price pressures ease, attributing recent increases to a transient supply shock from the Iran war that will reverse as U.S. oil production increases.

• April inflation data showed troubling trends: consumer prices jumped 0.6% monthly (3.8% annually), while producer prices soared 1.4% (6% annually, highest since late 2022)
• Bessent distinguishes current inflation from 2021-22 surge, rejecting 'transitory' label used then, saying energy inflation will decline as U.S. continues oil production to offset Iran war supply shock
• Kevin Warsh begins his tenure as Fed chair Friday after Jerome Powell's term ends, inheriting an inflation challenge with core inflation still at 2.8% annually

British food ingredients maker Tate & Lyle announced it is in takeover discussions with U.S. rival Ingredion, with a proposed valuation of 2.74 billion pounds ($3.70 billion). The company disclosed it has received multiple approaches from Ingredion, though no firm offer is certain.

• The deal values Tate & Lyle at $3.7 billion (£2.74 billion), representing a potential major consolidation in the food ingredients sector
• Ingredion has made multiple approaches to Tate & Lyle, indicating sustained interest in acquiring the British company
• No certainty exists that a firm offer will be made, suggesting negotiations are still at an early stage

Verizon, AT&T, and T-Mobile announced an agreement in principle to form a joint venture using satellite-based technologies to eliminate mobile service dead zones, particularly in rural areas. The initiative aims to provide redundant connectivity during natural disasters and improve overall network performance across the United States.

• The three largest U.S. wireless carriers will collaborate on satellite-based technology to address long-standing coverage gaps
• The plan seeks to end nearly all dead zones without mobile service, with a focus on underserved rural areas
• The joint venture will also provide backup connectivity during natural disasters and enhance network performance

U.S. Treasury Secretary Scott Bessent announced expectations for a major Chinese order of Boeing aircraft during President Trump's May 2026 visit to Beijing, as part of broader efforts to rebalance U.S.-China trade. The two nations are discussing establishing a 'Board of Trade' and 'Board of Investment' to govern bilateral commerce and facilitate non-sensitive Chinese investment in the U.S.

• Discussions include Chinese purchases of U.S. energy, agricultural goods, and Boeing aircraft, with the goal of balancing trade through increased U.S. exports to China rather than solely reducing imports
• A proposed 'Board of Investment' would pre-screen Chinese investments to ensure they avoid strategic or sensitive sectors that would trigger CFIUS (Committee on Foreign Investment) review
• Bessent dismissed reports of a $1 trillion Chinese investment target, emphasizing the focus is on trade balance through expanding exports in non-strategic areas like fireworks

Biogen announced it is moving its experimental Alzheimer's drug diranersen to late-stage trials despite the treatment failing to meet its primary endpoint in a mid-stage study. The 416-patient trial tested early-stage Alzheimer's patients but did not demonstrate that higher doses worked better than lower doses on a dementia severity scale at 76 weeks.

• The drug, diranersen, failed to show dose-dependent efficacy improvement in a 416-patient mid-stage trial for early-stage Alzheimer's disease
• The primary endpoint measured outcomes on a standard dementia severity scale at 76 weeks, which showed no significant difference between higher and lower doses
• Despite the trial miss, Biogen is proceeding with late-stage development, indicating confidence in the drug's potential based on other trial data

Britain launched an antitrust investigation into Microsoft's dominance in business software on May 14. The probe could result in targeted regulatory action if Microsoft is determined to have 'strategic market status' in the sector. This marks another regulatory challenge for the U.S. tech giant in international markets.

• The UK investigation focuses specifically on Microsoft's position in the business software market
• A finding of 'strategic market status' could trigger enforceable remedies or restrictions on Microsoft's operations
• The probe adds to growing global scrutiny of major U.S. technology companies' market power

The U.S. Senate Banking Committee is reviewing the Clarity Act, landmark cryptocurrency legislation that would establish regulatory jurisdiction over digital assets. The bill's passage requires bipartisan support, with at least seven Democratic votes needed, while facing opposition over weak anti-money laundering provisions and conflicts between crypto firms and traditional banks over stablecoin rules.

• The crypto industry spent over $119 million supporting pro-crypto candidates in 2024 to advance this legislation and related stablecoin bills
• Banks are lobbying against provisions they claim give crypto companies excessive leeway to offer stablecoin rewards, creating unfair competition for deposits
• Both the White House and Trump support the bill's passage; failure to pass in 2025 could prevent it from becoming law if Democrats take the House in November midterms

Meta and Google have directed tens of millions of dollars to children's organizations including Girl Scouts, Sesame Street, and Highlights Magazine to teach tech moderation, even as the companies face lawsuits alleging they designed addictive products that harm youth mental health. Pediatricians and parent advocates criticize these partnerships as reputation management that weakens trust in family institutions while the companies' business models rely on maximizing screen time. Google pledged at least $20 million to digital well-being groups, while internal Meta documents from 2018 discussed forming alliances with third parties to counter 'addiction' claims.

• Critics compare the partnerships to 'Sesame Street teaming up with Philip Morris,' arguing the companies cannot provide neutral guidance when their advertising revenue depends on keeping minors engaged on devices
• Sponsored materials include Girl Scout merit badges for digital content creation and Highlights Magazine instructions for making smartphone 'sleeping bags' for readers aged 6-12, which advocates say normalizes early smartphone ownership
• The first lawsuit against Meta and Google over youth mental health harm ended with a $6 million judgment, while pediatricians note the educational lessons don't address core issues like algorithmic recommendations that make apps harder to quit

U.S. President Donald Trump and Chinese President Xi Jinping held a historic summit in Beijing in May 2026, signaling a potential reset in relations after nine turbulent years. Analysts expect the meeting to bring 'stabilization' to ties between the world's two largest economies, with discussions covering trade, tariffs, Taiwan, rare earths, and the Iran conflict. The summit builds on a previous meeting that led to a thaw in the trade war, with Trump bringing top U.S. executives including Elon Musk, Tim Cook, and Larry Fink.

• Graham Allison expects the existing truce to become a formal agreement, potentially including a 'big headline' announcement of China purchasing $1 trillion in U.S. goods such as Boeing aircraft, soybeans, and semiconductors.
• The U.S. cleared approximately 10 Chinese firms to buy Nvidia's H200 AI chips, though the most advanced chips remain restricted, with Nvidia CEO Jensen Huang joining the trip.
• Both nations agreed to build a 'constructive China-U.S. relationship of strategic stability' as a guiding framework for the next three years, though analysts expect limited Chinese action on helping end the Iran war.

AstraZeneca announced that its cancer drug Imfinzi, when combined with targeted therapy enfortumab vedotin before and after surgery, significantly improved survival rates in patients with muscle-invasive bladder cancer in a late-stage trial. However, the combination of Imfinzi and another AstraZeneca drug, Imjudo, with pre-surgery treatment did not show statistically significant overall survival benefits.

• Imfinzi combined with enfortumab vedotin (a pre-surgery tumor-shrinking drug) delivered statistically significant improvements in both event-free survival and overall survival
• Approximately one in four bladder cancer patients have muscle-invasive disease, where the tumor invades the bladder's muscle wall without distant metastases
• The safety profile was consistent with known individual drug profiles, with no new safety signals observed during the trial

Foxconn, the world's largest contract electronics maker and top assembler for Apple and Nvidia servers, reported first-quarter net profit of T$49.92 billion, an 18.5% increase year-over-year. The result exceeded analyst expectations of T$48.88 billion, demonstrating strong performance for the Taiwan-based manufacturer.

• Q1 net profit reached T$49.92 billion versus T$42.12 billion in the prior year period, marking an 18.5% year-over-year increase
• Results beat LSEG consensus estimate of T$48.88 billion, signaling stronger-than-expected demand
• Foxconn serves as Nvidia's biggest server maker and Apple's top iPhone assembler, positioning it at the center of AI and smartphone supply chains

India has requested the United States extend its waiver on Russian oil purchases as conflict in the Persian Gulf disrupts energy supplies. The request comes amid ongoing tensions in the region that are affecting global energy markets. Reuters has not independently verified the Bloomberg report.

• The request is linked to prolonged conflict in the Persian Gulf that is disrupting energy supply chains
• India's waiver request highlights the country's continued reliance on Russian oil imports despite geopolitical pressures
• The development occurs alongside broader regional energy crisis affecting multiple countries, including Cuba's reported diesel shortage and potential European jet fuel concerns

The U.S. has approved approximately 10 Chinese firms, including Alibaba, Tencent, and ByteDance, to purchase Nvidia's H200 AI chips, but no deliveries have occurred due to Beijing's hesitation and regulatory complexities. Nvidia CEO Jensen Huang joined President Trump's Beijing delegation seeking to unlock the stalled deals. The impasse highlights escalating U.S.-China tech tensions, with China favoring domestic chip development and U.S. hardliners opposing sales that could narrow America's AI advantage.

• Approved buyers can purchase up to 75,000 H200 chips each, with Lenovo and Foxconn authorized as distributors, but Beijing has discouraged purchases to prioritize domestic chip development.
• China previously represented 13% of Nvidia's revenue, with the country's AI market estimated at $50 billion this year, though Nvidia's market share has eroded from 95% before export controls tightened.
• Complex requirements include U.S. mandates for security procedures, a 25% revenue share requiring chips to pass through U.S. territory, and new Chinese supply chain regulations intensifying scrutiny of foreign tech dependencies.

Honda Motor reported its first annual loss in nearly 70 years as a listed company, posting an operating loss of 414.3 billion yen ($2.63 billion) for the year ended March. The loss was driven by U.S. tariffs and over $9 billion in restructuring costs for its electric-vehicle business, marking a sharp reversal from the prior year's 1.2 trillion yen profit.

• Honda booked 1.45 trillion yen in total EV-related losses for the fiscal year and expects an additional 500 billion yen in costs for the current year
• The operating loss of 414.3 billion yen was worse than the median analyst estimate of a 315.6 billion yen loss
• Despite the historic loss, Honda forecasts a return to profitability this year with 500 billion yen in profit, supported by cost-reduction measures and its profitable motorcycle business

Oil prices rose slightly on Thursday as investors awaited a meeting between U.S. President Trump and Chinese President Xi Jinping in Beijing, with focus on the Iran war and control of the Strait of Hormuz. Both Brent crude and WTI futures gained approximately 0.12% after falling the previous day on interest rate concerns. The meeting aims to address economic issues and the Iran conflict, though analysts are skeptical about meaningful progress.

• Brent crude rose 13 cents to $105.76 per barrel while WTI increased 12 cents to $101.14, recovering from Wednesday's losses of over $2 and $1 respectively
• Iran has tightened control over the Strait of Hormuz, cutting deals with Iraq and Pakistan to ship oil and LNG, raising concerns about potential U.S. military action if diplomatic progress fails
• China remains the biggest buyer of Iranian oil despite U.S. sanctions, with over 80% of Iranian oil exports destined for China in 2025 as refiners capitalize on discounted sanctioned crude

Comcast-owned Sky is advancing toward acquiring ITV's Media and Entertainment unit in a deal valued at 1.6 billion pounds ($2.18 billion), with around 200 million pounds tied to future performance. The transaction includes ITV Studios acquiring a Sky production unit with key TV rights, allowing ITV Studios to remain standalone while retaining valuable intellectual property. The performance-based structure reflects volatility in the UK broadcast market, where traditional channels face declining advertising revenue.

• The deal includes an 'earn-out' portion of approximately 200 million pounds ($270.34 million) contingent on future business performance, highlighting uncertainty in the UK broadcast market
• ITV Studios will acquire a Sky production unit holding rights to TV series, bolstering its scripted portfolio and allowing it to operate as a standalone business after the M&E sale
• The tie-up aims to create a top-three UK streaming competitor against Netflix, YouTube, Amazon Prime Video, and Disney+, with a potential announcement as soon as next month

Japan's Takeda Pharmaceutical plans to cut approximately 4,500 jobs in fiscal year 2026 as part of a restructuring effort to centralize corporate functions and reduce costs. The company expects annual savings exceeding 200 billion yen ($1.27 billion) by fiscal 2028, with about 100 billion yen anticipated in fiscal 2026. This move follows years of restructuring after Takeda's $62 billion acquisition of Shire in 2019, which expanded its global presence but added significant debt.

• Takeda anticipates restructuring costs of around 170 billion yen in fiscal 2026, with lower amounts expected in the following two years
• The company reported revenue of 4.51 trillion yen during fiscal 2025, down 1.7% year-over-year
• The job cuts follow similar industry moves, including Novo Nordisk's September announcement to slash 9,000 jobs amid increased competition from Eli Lilly and copycat drugs

Chinese EV maker Xpeng is in discussions with Volkswagen and other automakers about acquiring a factory in Europe, according to the Financial Times. The talks follow Volkswagen CEO's recent comments about potentially sharing European factory capacity with Chinese partners. Volkswagen currently holds a stake in Xpeng and faces excess production capacity in Europe.

• Xpeng's managing director for northeastern Europe confirmed talks with Volkswagen to find a European location, though the company may also consider building a new plant
• Volkswagen owns a stake in Xpeng and has three joint venture partners in China (SAIC, FAW, and JAC), none of which currently have European production facilities
• Xpeng's European expansion faces challenges from tighter foreign investment rules as the company seeks to counter domestic market weakness

Cisco's stock surged 11% after the networking equipment maker reported better-than-expected fiscal third-quarter earnings and issued strong guidance for the next quarter. Revenue increased 12% year-over-year to $15.84 billion, beating analyst estimates of $15.56 billion, while net income rose to $3.37 billion.

• Revenue grew 12% to $15.84 billion versus $15.56 billion expected, with net income reaching $3.37 billion or 85 cents per share
• Cisco issued guidance of $1.16 to $1.18 in adjusted earnings per share for the fiscal fourth quarter
• The company announced new networking switches and routers using its next-generation processor and introduced a benchmark for ranking AI models based on cybersecurity robustness

Proxy advisory firms Glass Lewis and ISS have recommended that shareholders vote against key proposals at Exxon and Chevron's upcoming annual meetings. The advisories challenge Exxon's plan to reincorporate in Texas from New Jersey and recommend governance changes at both companies. The recommendations add pressure on the oil giants ahead of shareholder votes.

• Glass Lewis and ISS oppose Exxon's reincorporation to Texas, warning it could restrict shareholder rights and limit legal recourse; Exxon dismissed Glass Lewis as 'ill-informed'
• ISS advised Exxon shareholders to support a proposal expanding the company's retail voting program options, which Exxon claims is politically motivated by the New York City Comptroller's Office
• Glass Lewis recommended Chevron shareholders support splitting the CEO and board chair roles to create a more proactive board, though Chevron argues it needs leadership flexibility