Xinhua world news summary at 0050 GMT, May 22
BEIJING -- China and the ten ASEAN countries have fully completed negotiations on the Version 3.0 China-ASEAN Free Trade Area (CAFTA), the Ministry of Commerce said on Wednesday.
The achievement was announced during a special online meeting of economic and trade ministers from China and ASEAN on Tuesday, according to the ministry. (China-ASEAN-Trade)
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MUSCAT/TEHRAN -- Omani Foreign Minister Sayyid Badr bin Hamad bin Hamood Albusaidi said on Wednesday that the fifth round of indirect talks between the United States and Iran will be held in Rome on Friday, May 23. The announcement was made in a post on his official X account.
The talks, aimed at reviving stalled diplomacy over Iran's nuclear program and U.S. sanctions, are being facilitated by Oman. Four rounds have taken place since April, three in Muscat and one in Rome. (Iran-US-Indirect Talks)
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OTTAWA -- Canadian Foreign Minister Anita Anand said on Wednesday that she is summoning the Israeli ambassador over Israel Defense Forces' warning shots near a diplomatic tour in the West Bank.
Anand confirmed that four of Canada's personnel were part of the delegation when Israel Defense Forces fired shots. (Canada-Israel-Summons)
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JERUSALEM -- Israeli Prime Minister Benjamin Netanyahu said on Wednesday that all areas of the Gaza Strip will be under Israeli security control and Hamas will be defeated by the end of the ongoing "Operation Gideon's Chariots."
Netanyahu described the operation, which he said began on Saturday, as the "final phase" of Israel's military campaign. That campaign was launched following a Hamas-led attack on October 7, 2023, that killed about 1,200 people in Israel. (Israel-Gaza-Full Control)
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Globe and Mail
3 hours ago
- Globe and Mail
Carney faces pressure to retaliate against Trump's steel, aluminum tariffs
Prime Minister Mark Carney is facing increasing pressure from premiers, industry, labour and business organizations to retaliate against U.S. President Donald Trump's doubling of steel and aluminum tariffs. But even as he called the tariffs 'unlawful, unjustified and illogical,' Mr. Carney said Canada will take its time responding, citing broader talks with the U.S. that he said are progressing. Mr. Trump initially imposed tariffs of 25 per cent on the metals in March but doubled them to 50 per cent as of Wednesday. The tariffs apply to all foreign suppliers, but they will disproportionately hit Canada, which is the largest supplier of steel and aluminum to the U.S. Ottawa imposed retaliatory tariffs in March, but Mr. Carney lifted many of those in April over concerns that they would drive up prices for Canadian consumers. Mr. Carney, who won the spring election on a campaign to fight against U.S. tariffs, including through retaliation, said Canada wouldn't hit back against the increased tariffs just yet. 'We are in intensive negotiations with the Americans and in parallel, preparing reprisals if those negotiations do not succeed,' Mr. Carney said during Question Period on Wednesday. Ontario Premier Doug Ford urged immediate retaliation. He told reporters he had spoken with Intergovernmental Affairs Minister Dominic LeBlanc, who is leading the U.S.-Canada file, to make the case. The Canadian Labour Congress, the Canadian Chamber of Commerce and the Federation of Canadian Municipalities joined together to demand government action. The three groups rarely share a stage, but did so Wednesday to make a point, said Bea Bruske, president of the Canadian Labour Congress. 'This is an all-hands-on-deck moment. We need to defend our jobs. We need to invest in our industries, and we need to protect our communities that built this country, labour, business, municipalities and government.' She urged reprisal, but said she also wants the government to take other steps, including reforms to employment insurance to assist affected workers and legislated commitments to use Canadian steel in national projects. Industry, billionaire tycoon Barry Zekelman urge government action on steel dumping Ms. Bruske said there are 23,000 steel industry jobs in the country that could be affected 'within the next couple of days,' plus 9,500 aluminum jobs, and then all the spin-off jobs created by both industries. The Prime Minister's hesitation on retaliation is a contrast with the approach of then-prime minister Justin Trudeau, who immediately imposed tariffs on the U.S., both earlier this year and in 2018, during Mr. Trump's previous trade war with Canada. In March, Mr. Ford also moved quickly to levy a 25-per-cent surcharge on electricity that Ontario sends to 1.5 million homes in three U.S. states. He cancelled the measure within a day after Mr. Trump threatened to double steel and aluminum tariffs in response. But Mr. Ford said his understanding is that a Canada-U.S. deal is close, and so for now he is not reinstating the surcharge. Mr. Carney is pushing for a deal between the two countries covering both trade and national security, including the border and defence. The CEO of Algoma Steel Group Inc., Michael Garcia, said Ottawa should immediately bring in tariffs on imports of foreign steel to address dumping in Canada from places such as Turkey, Vietnam and the Middle East. Mr. Garcia said that unless the price of steel skyrockets, the company's U.S. business isn't viable anymore. 'I am advocating for Section 53 tariffs not as a retaliatory measure against the U.S., but as a prudent move to protect a vital strategic industry,' he said in an interview. Under Canada's Customs Tariff law, Section 53 tariffs can be imposed by Ottawa in cases in which unfair trade practices are occurring that are harming domestic trade. An estimate by Oxford Economics, a consultancy firm, found that more than half of U.S. steel imported into Canada is currently exempt from tariffs. The Aluminium Association of Canada said the tariff increase would destroy demand across the continent, no matter whether the metal is made in Canada or the U.S., and disrupt key sectors, including defence, construction and automotive. Steel prices in the U.S. have already risen by 16 per cent since Mr. Trump took office in January, and his higher tariffs risk causing inflation for American consumers by making products built with steel more expensive. At a committee hearing on Wednesday, U.S. Commerce Secretary Howard Lutnick said that the administration's goal is not to get other countries to simply lower trade barriers but to ensure that those countries stop exporting certain products to the U.S., a position that would appear to complicate Mr. Carney's efforts to land a deal that includes removing U.S. tariffs. Mr. Lutnick said under questioning from Senator John Kennedy, a Louisiana Republican, that he did not know the name of the Trade Expansion Act of 1962, the legislation under which the U.S. has imposed steel, aluminum and auto tariffs. He also said he was not familiar with a principle called the 'major questions doctrine,' which was central to a legal decision overturning a different series of Mr. Trump's tariffs. Mr. Lutnick is the member of the President's cabinet with top authority on trade policy. Mr. Kennedy's grilling of Mr. Lutnick could indicate a fracture in Republican support for Mr. Trump's agenda. While the party traditionally supported free trade, it has largely fallen in line behind the President's protectionism since he returned to office. Meanwhile, in Ottawa, the opposition Conservatives and the New Democrats all castigated Mr. Carney Wednesday for campaigning in the recent election on having a plan to push back against Mr. Trump, but still not having a deal to end the tariff dispute. Mining giants Alcoa, Rio Tinto and Aluminerie Alouette operate nine plants in Canada, eight of them in Quebec. This amps up the political pressure on the minority Liberal government from the Bloc Québécois. At a White House meeting last month, Mr. Trump said there was nothing Mr. Carney could say that would make him change his mind on tariffs, but the Prime Minister has remained insistent that such a deal would include the U.S. lifting its levies on Canada. With reports from Niall McGee and Nicolas Van Praet
Globe and Mail
4 hours ago
- Globe and Mail
S&P Futures Gain With Focus on U.S. ADP Jobs Report and Fed Speak
June S&P 500 E-Mini futures (ESM25) are trending up +0.22% this morning, extending yesterday's gains, while investors await comments from Federal Reserve officials and further data on the labor market, which has thus far remained resilient despite the Trump administration's trade war. Investors also await a potential call between U.S. President Donald Trump and Chinese President Xi Jinping this week in hopes of easing tensions. Still, President Trump said Wednesday that his Chinese counterpart was 'extremely hard' to strike a deal with. Also, President Trump doubled steel and aluminum tariffs to 50%, delivering on a promise to raise U.S. import duties in support of domestic manufacturers. Trump framed the move, which took effect at 12:01 a.m. Washington time on Wednesday, as essential to safeguard national security. In yesterday's trading session, Wall Street's three main equity benchmarks closed higher. Dollar General (DG) surged over +15% and was the top percentage gainer on the S&P 500 after the retailer posted upbeat Q1 results and raised its full-year sales growth guidance. Also, chip stocks advanced, with ON Semiconductor (ON) climbing more than +11% to lead gainers in the Nasdaq 100 and Microchip Technology (MCHP) rising over +6%. In addition, MoonLake Immunotherapeutics (MLTX) soared more than +17% after the Financial Times reported that Merck held talks to acquire the biotechnology company. On the bearish side, Kenvue (KVUE) slumped over -6% and was the top percentage loser on the S&P 500 after CEO Thibaut Mongon cautioned that seasonal demand was lagging both last year and the company's expectations. A Labor Department report released on Tuesday showed that U.S. JOLTs job openings unexpectedly rose to 7.391M in April, stronger than expectations of 7.110M. At the same time, U.S. April factory orders fell -3.7% m/m, weaker than expectations of -3.1% m/m and the biggest decline in 15 months. 'The higher-than-expected job openings number is a good sign for the economy, as many were worried that the tariff uncertainty was weighing too heavily on businesses,' said Chris Zaccarelli at Northlight Asset Management. Atlanta Fed President Raphael Bostic said on Tuesday that he is in no hurry to lower interest rates, noting he wants to see 'a lot' more progress on inflation. 'There's still a ways to go in terms of the progress that we're going to need to see,' Bostic said. Also, Chicago Fed President Austan Goolsbee said that higher inflation from U.S. tariffs could show up quickly, though it would take more time to observe a tariff-driven economic slowdown. In addition, Fed Governor Lisa Cook said she views tariffs as potentially fueling inflation and weakening employment, while emphasizing the importance of price stability in guiding future rate adjustments. Meanwhile, U.S. rate futures have priced in a 98.7% chance of no rate change and a 1.3% chance of a 25 basis point rate cut at the June FOMC meeting. Today, investors will focus on the U.S. ADP Nonfarm Employment Change data, which is set to be released in a couple of hours. Economists, on average, forecast that the May ADP Nonfarm Employment Change will stand at 111K, compared to the April figure of 62K. The U.S. ISM Non-Manufacturing PMI and S&P Global Services PMI will also be closely monitored today. Economists expect the May ISM services index to be 52.0 and the S&P Global services PMI to be 52.3, compared to the previous values of 51.6 and 50.8, respectively. U.S. Crude Oil Inventories data will be released today as well. Economists expect this figure to be -2.900M, compared to last week's value of -2.795M. In addition, market participants will hear perspectives from Fed Governor Lisa Cook and Atlanta Fed President Raphael Bostic throughout the day. Later today, the Fed will release its Beige Book survey of regional business contacts, which provides an update on economic conditions in each of the 12 Fed districts. The Beige Book is published two weeks before each meeting of the policy-setting Federal Open Market Committee. On the earnings front, notable companies like Dollar Tree (DLTR), MongoDB (MDB), and Five Below (FIVE) are set to report their quarterly figures today. In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.467%, up +0.11%. The Euro Stoxx 50 Index is up +0.69% this morning, buoyed by Germany's tax relief package aimed at boosting the region's largest economy. Mining and technology stocks led the gains on Wednesday. The German cabinet on Wednesday approved a first tax relief package totaling 46 billion euros ($52.43 billion) for the period from 2025 to 2029 to aid businesses and reinvigorate its sluggish economy. Still, trade remains a concern for many investors. U.S. President Donald Trump signed a proclamation to double tariffs on steel and aluminum, and the European Union criticized the move, cautioning that it could jeopardize ongoing trade talks and reaffirming its readiness to introduce countermeasures if needed. Also, Wednesday marks the deadline for U.S. trading partners to present their 'best offers' for trade deals that could potentially help them avoid Trump's sweeping tariffs from taking effect. Meanwhile, a survey released on Wednesday showed that Eurozone business activity saw minimal growth in May as the dominant services sector shrank for the first time since November, pressured by waning demand. Investor focus now shifts to the European Central Bank's rate-setting meeting on Thursday, with the central bank widely expected to lower the deposit rate by another 25 basis points to 2.00%. In corporate news, Airbus SE ( gained over +3% after Bloomberg reported that Chinese airlines were considering ordering hundreds of the company's aircraft as soon as next month. Eurozone's Composite PMI and Eurozone's Services PMI data were released today. Eurozone's May Composite PMI arrived at 50.2, stronger than expectations of 49.5. Eurozone's May Services PMI came in at 49.7, stronger than expectations of 48.9. Asian stock markets today closed in the green. China's Shanghai Composite Index (SHCOMP) closed up +0.42%, and Japan's Nikkei 225 Stock Index (NIK) closed up +0.80%. China's Shanghai Composite Index ended higher today on optimism that a call between U.S. and Chinese leaders could help ease trade tensions. Technology and brokerage stocks gained ground on Wednesday. Rare earth stocks also surged. The export of rare earths has been pushed into the spotlight in the U.S.-China trade negotiations. Investor concerns over the latest U.S.-China dispute concerning access to chips and rare earths were slightly alleviated by the possibility of a call between U.S. President Donald Trump and Chinese leader Xi Jinping later this week. The U.S. reiterated on Tuesday that Trump and his Chinese counterpart will speak 'very soon,' although Beijing has yet to confirm it. Analysts noted that direct talks between Xi and Trump could help ease tensions between the world's largest economies after both countries accused each other of breaching a trade deal struck in May. Meanwhile, Trump said Wednesday that Xi was very difficult to strike a deal with, even as he reaffirmed his personal admiration for the Chinese leader. 'I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!' Trump said in a late-night social media post. In other news, Bloomberg reported on Wednesday that Chinese carriers are weighing plans to order up to 300 narrowbody and widebody aircraft from Airbus SE as early as next month. In corporate news, BYD rose over +1% after several of its car models were selected for a government initiative aimed at boosting sales of green-energy vehicles in rural regions. Japan's Nikkei 225 Stock Index closed higher today, snapping a 3-session losing streak as overnight gains on Wall Street boosted sentiment. A weaker yen also bolstered investors' risk appetite. Chip stocks climbed on Wednesday, tracking overnight gains in their U.S. counterparts amid renewed enthusiasm for the AI trade. Machinery stocks also advanced. A private sector survey released on Wednesday showed that growth in Japan's service sector activity eased in May due to softer demand, doing little to offset declining factory activity and resulting in near-zero overall business growth. Meanwhile, Bank of Japan Governor Kazuo Ueda said on Tuesday that the country's economy is capable of weathering the impact of U.S. tariffs and maintaining a cycle of rising inflation supported by wage growth. On the trade front, White House spokeswoman Karoline Leavitt said on Tuesday that the U.S. had requested countries to submit their best trade negotiation offers by Wednesday. Even so, Japan has not received a letter from the U.S. asking for its best proposals on trade talks, Chief Cabinet Secretary Yoshimasa Hayashi said on Wednesday. In other news, the Yomiuri newspaper reported that Japan's junior ruling coalition partner, Komeito, plans to propose lowering the consumption tax rate on food items to 5% from 8% as part of its campaign pledge for the upper house election scheduled for July. In corporate news, Toyota Industries plunged over -11% after automaker Toyota Motor announced plans to take the forklift-maker private in a $33 billion deal, significantly below the valuation suggested in earlier media reports. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -4.76% to 23.40. The Japanese May au Jibun Bank Services PMI arrived at 51.0, stronger than expectations of 50.8. Pre-Market U.S. Stock Movers Hewlett Packard Enterprise (HPE) climbed more than +5% in pre-market trading after the company posted upbeat FQ2 results and raised the lower end of its full-year adjusted EPS guidance. Wells Fargo (WFC) gained over +3% in pre-market trading after the Federal Reserve lifted the asset cap imposed in 2018 following a fake-accounts scandal. Snowflake (SNOW) rose more than +2% in pre-market trading after UBS upgraded the stock to Buy from Neutral with a price target of $265. CrowdStrike Holdings (CRWD) slumped over -6% in pre-market trading after the cybersecurity company reported weaker-than-expected Q1 revenue and issued below-consensus Q2 revenue guidance. Apple (AAPL) fell about -0.6% in pre-market trading after Needham downgraded the stock to Hold from Buy. You can see more pre-market stock movers here Today's U.S. Earnings Spotlight: Wednesday - June 4th Dollar Tree (DLTR), MongoDB (MDB), Descartes Systems (DSGX), Five Below (FIVE), Thor Industries (THO), PVH (PVH), Argan (AGX), Greif Bros (GEF), Sprinklr (CXM), Rev Group (REVG), Planet Labs PBC (PL), Verint (VRNT), Jiayin (JFIN), VersaBank (VBNK), ChargePoint Holdings (CHPT), Lovesac (LOVE), Genesco (GCO), BARK (BARK).
Globe and Mail
4 hours ago
- Globe and Mail
Why Shares of Pony AI Stock Were Up More Than 100% Last Month
Shares of Pony AI (NASDAQ: PONY) soared 112% in May, according to data from S&P Global Market Intelligence. The upstart is trying to bring self-driving and autonomous vehicle technology to the masses, with a focus on the Chinese market. It has a market cap of $4.67 billion but minimal sales and huge operating losses. However, investors are betting big on the potential future for this self-driving disrupter as it signs many partnerships with companies like Uber. Here's why Pony AI stock was flying high in May. Betting on autonomous vehicles in China and around the world Pony AI is developing autonomous vehicle technology to be deployed on robotaxis, trucks, and everyday owned vehicles. It is focused on large cities in China, such as Shenzhen and Beijing. Shares soared last month because of partnership announcements with Uber and Tencent Holdings. Uber is now a strategic partner with Pony AI and hopes to deploy the technology for ridesharing in a Middle East market shortly. The Tencent partnership is with Tencent Cloud. In the early stages of its business model, Pony AI generated just $14 million in revenue last quarter and a measly $2.3 million in gross profit. On this revenue, it had a $56 million operating loss due to the heavy spending it is implementing on research and development costs. Building self-driving technology is not cheap. The company does have over $500 million in cash on the balance sheet, but that money will run out quickly at its current burn rate. Should you buy Pony AI stock? Betting on Pony AI at a market cap of $4.67 billion does not seem wise. It is barely generating any sales and is working in a wildly difficult market in self-driving technology. Plus, it operates in China, an opaque market for Western investors. This adds up to a ton of risks for the stock. Even if the company keeps scaling with partnerships, it may be years before its revenue and earnings align with what a $4.67 billion market cap demands. For investors interested in self-driving, look at Waymo, a subsidiary of Alphabet. The service is now doing over 250,000 paid weekly trips, which dwarfs anything Pony AI has been able to achieve. This is not to say that Pony AI's technology does not work -- and it does serve different markets -- just that you are betting on a start-up in a field crowded with huge technology competitors. This feels like a risk not worth taking vs. the stock's current valuation figures, meaning investors should stay away from buying Pony AI stock right now. Should you invest $1,000 in Pony Ai right now? Before you buy stock in Pony Ai, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Pony Ai wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $656,825!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $865,550!* Now, it's worth noting Stock Advisor 's total average return is994% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Brett Schafer has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Tencent, and Uber Technologies. The Motley Fool has a disclosure policy.
