logo
What's Next for Oil Prices After April's Slump?

What's Next for Oil Prices After April's Slump?

Bloomberg01-05-2025

Following oil's biggest monthly drop since 2021, signs that the Saudi-led OPEC+ alliance may be entering a prolonged period of higher output is adding to concerns that a global trade war will hurt demand. Bloomberg's Anthony Di Paola reports. (Source: Bloomberg)

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Inflation holds steady as data shows how prices are faring after Trump's ‘Liberation Day' tariffs
Inflation holds steady as data shows how prices are faring after Trump's ‘Liberation Day' tariffs

Yahoo

time11 minutes ago

  • Yahoo

Inflation holds steady as data shows how prices are faring after Trump's ‘Liberation Day' tariffs

Inflation held steady last month, according to data that gives the first glimpse of how prices are faring since President Donald Trump's sweeping 'Liberation Day' tariffs. Consumer prices rose 0.1 percent on a monthly basis in May, while annual inflation stood at 2.4 percent, according to the Department of Labor's consumer price index. The report captures the period after Trump unveiled his global reciprocal tariffs in April and provides some insight as to whether businesses are bearing the brunt of the duties themselves or passing them on to customers. Analysts predicted to see a bigger increase, but some still warn the future is uncertain because tariffs keep changing. 'So far, inflation risks from higher tariffs are subdued,' Win Thin, global head of markets strategy at Brown Brothers Harriman, told Bloomberg. 'Nonetheless, US protectionist trade policy and uncertainty about the ultimate level of tariffs are downside risks to growth and upside risk to inflation. Bottom line: the fundamental USD downtrend is intact.' Since Trump announced his global reciprocal tariffs and the stock market was spooked, many of the duties were paused. However, 10 percent tariffs for most countries remain. Inflation has been slow to respond to the tariffs as most retailers are selling merchandise accumulated before the import duties took effect. Economists said that the reduction in the scale of some trade tariffs may have 'helped to restrain cost increases thus far,' Wells Fargo's Sarah House and Nicole Cervi said. 'That said, as the higher tariff regime persists, shielding consumers from the costs is likely to become more challenging,' the economists added. 'Only a few goods prices likely rose as a result of the new tariffs in May,' Pantheon Macroeconomics economists Samuel Tombs and Oliver Allen said in a note, Bloomberg reports. 'June will be a different story — while some providers of discretionary services probably cut prices or kept them low to sustain demand.' Walmart warned customers last month that they could see price rises because of the trade tariffs. The retailer's chief financial officer John David Rainey said that the tariffs are 'still too high.' 'It's more than any supplier can absorb. And so I'm concerned that consumer is going to start seeing higher prices,' he said. 'You'll begin to see that, likely towards the tail end of this month, and then certainly much more in June.' Reuters contributed reporting

Tilray Brands pauses stock-split plan despite shareholder approval
Tilray Brands pauses stock-split plan despite shareholder approval

Yahoo

time26 minutes ago

  • Yahoo

Tilray Brands pauses stock-split plan despite shareholder approval

Beverages-to-cannabis business Tilray Brands has 'paused' plans to reduce the number of market-traded shares as the company assesses its options. While Nasdaq-listed Tilray Brands said in a statement yesterday (10 June) that the reverse stock split has been approved by its shareholders, the North American business is holding back from proceeding. The beers and energy drinks maker said it was 'exploring all options related to timing of the reverse split as it evaluates timing and stock price'. Tilray Brands' shares have dived since the company went public in 2018 and were trading at 42 US cents yesterday, compared to the IPO price of $17. One of the reasons cited yesterday by New York-headquartered Tilray Brands for the stock split was 'ensuring compliance' with Nasdaq listing rules, which require traded companies to maintain a minimum bid price of $1. Media speculation suggests the reason for the shares' collapse is linked more with the US cannabis industry, where some states have legalised its use for medicinal and/or recreational purposes but it is not legal at the federal level. The state of Texas is now moving to ban the use of THC products, while there is some doubt as to whether President Donald Trump will legalise pot. Cannabis use is legal in Canada, where Tilray Brands operates out of Leamington in Ontario. Bloomberg reported that the pessimism around cannabis use is evident in what the news agency said was the largest exchange-traded fund tracking the legal weed industry. The AdvisorShares Pure US Cannabis ETF, traded at around $2.37, down 96% from the closing high of $55.05 in February 2021, Bloomberg said. It quoted Roth Capital Partners analyst Bill Kirk as saying in an interview: 'There's been this carrot that's been dangling in front of this industry for so long, and it's been a mirage. If the carrot's there, it's rotten at this point. No one's chasing it anymore, no one believes it's going to come to pass.' Tilray Brands, which owns a slate of breweries such as Atwater, Alpine and Hop Valley, made no mention of the cannabis industry yesterday as it seeks to purse a reverse stock split in a range of 1 for ten to 1 for 20 shares. 'Upon implementation of the reverse stock split, the company believes it would be well positioned for strategic opportunities and acquisitions given its strong balance sheet,' said the statement. As well as complying with Nasdaq listing rules, Tilray Brands said the split would better align the number of outstanding shares with 'companies of its size and scope' and make the business 'more attractive to institutional shareholders'. However, Bloomberg pointed out that Tilray Brands had a market capitalisation of almost $20bn in 2018 when it went public but that is now less than $500m. Meanwhile, Tilray Brands cut its sales forecast for fiscal 2025 in April, citing 'adjustments for constant currency and the impacts of the strategic initiatives and SKU rationalisation'. In January, the business announced plans to cut more than 300 SKUs as part of a wider programme dubbed Project 420 through which Tilray Brands was looking to find synergies to boost the profitability of its drinks division. The Hi*Ball Energy drinks producer lowered its revenue guidance to $850m-$900m, from $950m to $1bn previously. "Tilray Brands pauses stock-split plan despite shareholder approval" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.

Nintendo sets record with 3.5 million Switch 2 units sold in four days
Nintendo sets record with 3.5 million Switch 2 units sold in four days

Engadget

time36 minutes ago

  • Engadget

Nintendo sets record with 3.5 million Switch 2 units sold in four days

Nintendo has sold 3.5 million Switch 2s in four days, setting a company record for a new console launch. That puts Nintendo on track toward its goal to sell 15 million units by March 2026 if it can keep up on the production side. By comparison, it took the original Switch nearly a full month to hit 2.7 million units sold, even though it launched at a considerably lower price ($300 compared to $450 for the Switch 2). To get a hold of one, fans entered lotteries to buy consoles directly from Nintendo, ordered online or simply lined up outside retailers like Game Stop when the Switch 2 went on sale last week. However, demand appeared to exceed the company's expectations, so President Shuntaro Furukawa apologized to customers that failed to pick one up, Bloomberg reported. The company also asked suppliers to boost production. With a successful launch under its belt, Nintendo's goal is to maintain momentum. The company no doubt learned some lessons last time around as it had supply issues during the first few months after the original's Switch's launch that constrained sales. US tariffs could also bite. During an investor call last month, Furakawa explained that additional tariffs could necessitate a price increase in the US, causing demand to fall.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store