Trending Market News

Brazil's state-run oil firm Petrobras is pursuing partnership opportunities with Mexico's Pemex to expand overseas operations and replenish oil reserves. CEO Magda Chambriard announced plans to send representatives to Mexico to explore collaboration in ultra-deep water drilling in the Gulf of Mexico, with potential future deals also being considered in Venezuela.

• Petrobras views the Mexican portion of the Gulf of Mexico as underdeveloped, particularly in ultra-deep waters where the Brazilian firm has specialized expertise
• Partnership discussions were initiated by Brazilian President Lula da Silva with Mexican President Claudia Sheinbaum earlier this year, with opportunities identified in exploration, mature field operations, and nearby refining
• Petrobras is increasing domestic refining capacity to make Brazil self-sufficient in gasoline and diesel, with plans to raise refinery gate gasoline prices soon, though extraordinary dividends are unlikely this year despite higher global oil prices

Leidos Holdings has been awarded a $2.7 billion U.S. Army contract to transition hypersonic weapons from prototype development into production. The deal integrates Leidos' Thermal Protection Shield technology with its Common Hypersonic Glide Body program, which produces components for the 'Dark Eagle' long-range hypersonic missile. This contract advances U.S. capabilities in hypersonic weapons, a key area of strategic competition with China.

• Hypersonic weapons travel at more than five times the speed of sound and can evade traditional defenses, making them central to the U.S.-China arms race
• The contract combines thermal protection technology with the Common Hypersonic Glide Body program that produces the body for the 'Dark Eagle' missile deployed by the U.S. Army and Navy
• Integrating these programs aims to reduce production timelines and ensure reliable supply of components to meet operational demands

United Airlines' approximately 30,000 flight attendants ratified a new five-year labor contract featuring 31% average pay increases by August, marking their first raises in nearly six years. The deal, approved by 82% of voting members, makes United the last major U.S. carrier to reach a post-Covid agreement with unionized flight crews.

• The contract includes $741 million in back pay and a roughly 7-8% overall increase in compensation for the cabin crew workforce
• New provisions include boarding pay (compensation while aircraft doors are open), 'sit pay' during disruptions exceeding 2.5 hours, and restrictions on red-eye flights
• Flight attendants had rejected an earlier contract proposal in the previous year before approving this agreement with nearly 90% voter participation

The Senate confirmed Kevin Warsh as a Federal Reserve governor on Tuesday with a 51-45 vote, advancing his nomination to become Fed chair. A second vote to confirm him as chair is expected Wednesday, positioning him to replace Jerome Powell, whose eight-year term officially ends Friday.

• The vote was largely party-line, with only Sen. John Fetterman (D-Pa.) crossing party lines to support Trump's nominee
• Warsh, 56, previously served on the Fed Board of Governors and will take over from Jerome Powell, who plans to remain on the board until 2028 and complete a headquarters renovation probe
• Warsh's confirmation also ends Stephen Miran's brief term on the board, who had filled the seat vacated by Adriana Kugler in August 2025

Three U.S. LNG tankers departed Louisiana in early May 2026 headed for China, marking the potential first direct shipment in over a year as energy ties show signs of thawing ahead of a Trump-Xi summit. The shipments come after Chinese buyers resold U.S. LNG cargoes to other countries throughout 2025 amid trade tensions. U.S. LNG exports to China have dropped sharply, from 64 vessels in 2024 to just four vessels arriving directly in early 2025.

• Three vessels from Cheniere Energy and Venture Global departed May 5-8 and are expected to arrive at China's Tianjin port between June 15-20, 2026
• Direct U.S.-to-China LNG shipments plummeted from a record 131 vessels in 2021 to only four in early 2025 before Trump's second term began
• Chinese buyers have been reselling U.S. LNG contracts to other countries due to trade disputes and higher profit margins, while increasing reliance on pipeline imports from Russia and Central Asia

Chip stocks experienced a broad selloff on Tuesday, with Qualcomm plunging 13% in its worst session since 2020. The decline followed a hotter-than-expected inflation reading and rising oil prices tied to conflict in Iran, triggering a risk-off shift among investors. The pullback ended a rally that had broadened AI-related gains beyond Nvidia to include CPU and memory chip makers.

• Qualcomm fell 13%, Intel dropped 8%, while Micron and AMD each declined over 6% as chip stocks retreated from record highs driven by AI demand
• The selloff was triggered by an unexpectedly hot inflation report and rising oil prices linked to the Iran conflict, pushing investors into risk-off mode
• Investors had been betting that the transition from AI training to agentic AI would boost demand for CPUs and memory chips, benefiting companies beyond Nvidia

Boeing booked 135 net new orders in April 2025, bringing its total through April to 284 orders—the highest four-month total since 2014. Despite the surge, Boeing still trails European rival Airbus, which recorded 405 orders through the same period. The company delivered 47 jetliners in April, including 34 737 MAX aircraft.

• Boeing's 284 net orders through April represent its strongest start to a year since 2014, though Airbus leads with 405 orders after adjustments for cancellations
• April orders included 28 new 777X jets from undisclosed customers as Boeing works to certify the long-delayed widebody aircraft
• Certification delays for premium seats continue to hamper 787 deliveries, though Boeing maintains its 2025 target of delivering 90-100 of the twin-aisle jets

Tesla announced a $250 million investment to expand battery cell production capacity at its Berlin-area factory in Gruenheide, Germany. The investment will more than double annual production capacity from 8 gigawatt hours to 18 GWh. This expansion reinforces Tesla's commitment to its European manufacturing operations.

• Production capacity will increase by 125%, from 8 GWh to 18 GWh annually
• The facility is located in Gruenheide, southeast of Berlin
• Investment focuses specifically on battery cell production infrastructure

The U.S. Consumer Price Index rose 3.8% year-over-year in April, exceeding the Dow Jones consensus forecast of 3.7%. The higher-than-expected inflation reading signals persistent price pressures in the economy.

• April CPI increased 3.8% annually, surpassing the 3.7% economist consensus estimate
• The inflation surprise suggests price pressures remain elevated despite expectations for continued cooling

Stellantis CEO Antonio Filosa announced that partnerships will be central to the automaker's future strategy ahead of a new multi-year business plan presentation next week. The company recently expanded its collaboration with Chinese partner Leapmotor to include joint car production in Europe beyond distribution. Filosa indicated additional partnership opportunities are being considered beyond the Leapmotor deal.

• Stellantis last week announced joint car production in Europe with Chinese partner Leapmotor, expanding their relationship into manufacturing
• CEO Filosa stated at the FT Future of the Car Summit that partnerships 'will be embedded in our strategy going forward'
• The announcement comes ahead of Stellantis presenting a new multi-year business plan next week, with Filosa suggesting more partnerships beyond Leapmotor are possible

EBay rejected a $56 billion takeover bid from GameStop, citing doubts over financing, as the much smaller $12 billion video game retailer attempted to acquire a company nearly four times its market value. The rejection may prompt GameStop CEO Ryan Cohen to pursue a hostile bid, though the proposal has faced skepticism from analysts, investors, and notable GameStop shareholder Michael Burry, who sold his entire stake following the announcement.

• GameStop's half-cash, half-stock offer of $125 per share significantly exceeds eBay's current trading price, which remains $20 below the offer price, reflecting market doubts about deal viability
• Michael Burry, who previously compared Cohen to Warren Buffett, sold all his GameStop shares and criticized the deal strategy as 'pedestrian' while warning about the resulting debt load
• Cohen's strategy involves replicating his cost-cutting playbook at eBay and leveraging GameStop's 1,600 U.S. stores to create a physical network to compete with Amazon, with $20 billion in potential debt financing from TD Securities

Amazon is launching 30-minute delivery service called Amazon Now in dozens of U.S. cities, expanding from a December pilot program. The service uses micro-fulfillment centers and Flex drivers to deliver thousands of items ultra-fast, competing directly with gig economy companies and traditional retailers. Amazon plans to reach tens of millions of customers by year-end, further accelerating the delivery speed race beyond same-day shipping.

• Prime members pay $3.99 per delivery (plus $1.99 for orders under $15), while non-Prime members pay $13.99, with 24/7 availability in most areas
• Amazon uses specialized 5,000-10,000 square foot 'dark stores' located closer to customers than typical warehouses, stocking thousands of items for rapid fulfillment
• The expansion directly challenges retailers like Walmart (which offers 3-hour delivery to 95% of U.S. households) and delivery platforms like DoorDash and Uber Eats

The European Union is targeting TikTok and Instagram for 'addictive design' features such as endless scrolling, autoplay, and push notifications that harm children. EU Commission President Ursula von der Leyen announced plans to introduce regulatory action later this year, with a legal proposal potentially ready by summer. This follows a March court ruling in the U.S. that found Meta and YouTube's design features contributed to teen addiction and mental health issues.

• The EU is investigating platforms for allowing children to access 'rabbit holes' of harmful content promoting eating disorders and self-harm, with enforcement expected later in 2026
• The EU has developed age-verification technology with 'highest privacy standards' that will be integrated into member states' digital wallets to verify users' ages
• This crackdown adds to over $7 billion in fines imposed on U.S. tech companies in the past two years, prompting President Trump to consider tariffs against EU digital service taxes and fines

Waymo is recalling approximately 3,800 robotaxis in the United States due to a software bug that could cause vehicles to enter flooded roads at high speeds. The recall follows an April 20 incident where an unoccupied Waymo vehicle drove into a flooded lane in San Antonio during extreme weather, prompting a safety review.

• The company is implementing software safeguards and temporary restrictions, including refined extreme weather operations and limited access to flash flood-prone areas while working on a permanent fix
• Waymo faces separate investigations: one by NHTSA after a robotaxi struck a child in Santa Monica in January causing minor injuries, and another by NTSB for a vehicle passing a stopped school bus illegally in Texas
• NHTSA confirmed Waymo has temporarily narrowed its operating scope with increased weather restrictions and updated maps during the recall period

Bayer reported a 9% increase in first-quarter operating profit, driven primarily by strong performance in its agricultural business unit. The German pharmaceutical and chemical company's adjusted EBITDA of 4.45 billion euros significantly exceeded analyst expectations of 3.93 billion euros.

• Adjusted EBITDA reached 4.45 billion euros ($5.23 billion), beating the analyst consensus of 3.93 billion euros
• The crop protection (agricultural) unit was the main driver of the 9% operating profit growth
• The results substantially outperformed market expectations by approximately 13%

Roche has received European CE mark approval for its second blood-based Alzheimer's test, the pTau217 test, developed in partnership with Eli Lilly. The test can both confirm and exclude Alzheimer's disease, improving upon the company's earlier pTau181 test, and will be available in CE-marked markets starting in July.

• The pTau217 test is validated for use in both primary and specialist care settings and has already received breakthrough device designation from the U.S. FDA
• Blood tests could accelerate diagnosis and expand access to Alzheimer's treatments like Leqembi and Kisunla, addressing current diagnostic methods that are often costly or invasive
• Approximately 75% of people living with dementia remain undiagnosed, highlighting the significant need for improved diagnostic tools

China's Jiangsu Hengrui Pharmaceuticals announced a global strategic collaboration and licensing agreement with Bristol Myers Squibb to jointly develop 13 early-stage programs in oncology, hematology, and immunology. The deal includes potential milestone payments of up to $15.2 billion, marking a significant cross-border pharmaceutical partnership.

• The collaboration covers 13 early-stage drug development programs focused on cancer, blood disorders, and immune system treatments
• Total potential milestone payments could reach $15.2 billion, representing one of the largest pharma deals between Chinese and U.S. companies
• The agreement grants Bristol Myers Squibb access to Jiangsu Hengrui's pipeline while expanding the Chinese drugmaker's global reach

China and the U.S. may reach a farm deal during the Xi-Trump summit this week, but the agreement is expected to focus on corn, sorghum, wheat, and meat rather than soybeans. China is unlikely to increase soybean purchases beyond its October commitment of 25 million metric tons annually through 2028, due to weak demand and cheaper Brazilian alternatives. China's reliance on U.S. soybeans has dropped from 41% in 2016 to just 15% in the most recent year.

• China bought $12 billion in U.S. soybeans in 2024 before Trump's return, compared to only $4.5 billion for corn, sorghum, wheat, beef and poultry combined
• Markets await clarity on how China will fulfill last year's 25 million ton annual soybean commitment through 2028, with uncertainty about whether targets apply to calendar or crop years
• More than 20 U.S. business leaders, including Cargill's chair, will join Trump on the trip as agriculture remains one of the less contentious areas in bilateral relations

OpenAI has capped its revenue-sharing payments to Microsoft at $38 billion, according to The Information. The report, citing a person familiar with the arrangement, highlights a significant limit on the financial relationship between the two companies. Reuters has not independently verified this information.

• The $38 billion cap represents a defined limit on how much OpenAI will pay Microsoft through their revenue-sharing agreement
• The Information reported this development based on a source with knowledge of the arrangement between the companies
• Reuters was unable to immediately verify the report independently

Oil prices rose on Tuesday after President Trump declared the U.S.-Iran ceasefire on 'life support' and rejected Tehran's latest peace proposal, signaling the Middle East conflict may continue. Brent crude gained 0.30% to $104.51 per barrel while WTI rose 0.31% to $98.40, with both benchmarks up over 40% since the war began on February 28.

• Trump called Iran's counterproposal 'garbage' and described the ceasefire as having 'approximately a 1% chance' of surviving, drastically reducing hopes for a diplomatic resolution
• Oil prices have surged more than 40% since the U.S. and Israeli-led war against Iran started on February 28, 2026
• Citi analysts warned that 'oil prices have been volatile and can rise further if US-Iran dealmaking remains thorny,' while Trump may seek China's help pressuring Iran during upcoming talks with President Xi