Daily Buzz: May 2 2025
Top News
US sanctions Iranian oil buyers
US President Donald Trump announced that any country buying oil or petrochemical products from Iran will "not be allowed to do business with the US in any way, shape or form." Trump's announcement came after a fourth round of talks between Washington and Tehran over Iran's nuclear capabilities was postponed. An Iranian official told Reuters that "US sanctions are not helping the sides to resolve the nuclear dispute through diplomacy." Trump's oil sanctions are clearly aimed at China, which imports more than 1 million barrels a day from Iran, CNBC reported, quoting Scott Modell, chief executive of consulting firm Rapidan Energy Group.
US Senate move to block tariffs fails
An attempt by the US Senate to overturn President Trump's tariffs failed after Vice President JD Vance cast the deciding vote to break a deadlock. The Senate measure would have rescinded the powers of national emergency declaration that Trump is using to impose tariffs.
In other Senate action, longtime China critic David Perdue was confirmed as the new US ambassador to China. Perdue, 75, is a former US senator and business executive.
South Korean political churn
South Korea's political turmoil continued after Lee Jae-Myung, frontrunner in the June 3 presidential election, was ordered to undergo a new trial on charges of election law violations and the nation's acting president, Han Duck-soo resigned to run for president. Finance Minister Choi Sang-mok, who was to replace him on an interim basis, also resigned. The election was called after the nation's Constitutional Court removed former President Yoon Suk Yeol from office for his martial law declaration last December.
US national security shakeup
President Donald Trump said he will nominate national security advisor Mike Waltz to become the next US ambassador to the United Nations, with Secretary of State Marco Rubio taking over his duties on an interim basis. Waltz had come under fire for his role in a scandal involving use of an unsecured group chat app to discuss classified information. Trump had previously nominated Congresswoman Elise Stefanik to the UN role but withdrew the nomination to preserve the thin Republican House majority.
Top Business
Christmas gloom
Santa's bag is looking decidedly thinner as many US toy retailers cancel shipments from China, which supplies an estimated 80 percent of the US toy market and has been hit with 145 percent US import tariffs under President Donald Trump. Retailers warned of shortages and higher prices in the coming holiday shopping season. Trump dismissed concerns, saying China has made billions of dollars selling the US "stuff it doesn't need" and children will have to be satisfied with "two dolls instead of 30."
Economy
China's gold investments surge
Chinese investors poured a record US$2.3 billion into gold exchange-traded funds in the first quarter as the price of bullion hit record highs. The purchases lifted Chinese investment in the funds to an all-time high of 138 metric tons. However, overall gold consumption in China in the first three months declined 15 percent from a year earlier on weaker demand for gold jewelry, the World Gold Council said.
Gold prices dropped to a two-week low on Thursday, Reuters reported, citing perceptions of a softening in trade tensions and a holiday in China, the world's top producer and consumer of gold. US gold futures settled on Thursday at US$3,222, down from a record US$3,500 last week.
Foreign investors exit US assets
Foreign investors are increasingly retreating from US assets, Deutsche Bank reported, citing a slowdown in foreign inflows into American stocks and bonds. Analysts warned the trend could undermine the dollar's status as the global reserve currency. The shift reflects growing concerns triggered by US tariffs and budget policies.
Corporate
Tesla denies search to replace Musk
US electric carmaker Tesla has denied a report in the Wall Street Journal that it is searching for a successor to replace founder and Chief Executive Elon Musk. Board Chairman Robyn Denholm issued the statement amid a 30 percent decline in Tesla this year, caused by a backlash from consumers and investors over Musk's political involvement with the Trump administration. Musk, who earlier said he would be returning his focus to Tesla after ending his role as Trump's bureaucracy slasher this month, called the Journal report a "discredit to journalism."
Tariffs biting Apple?
Apple reported quarterly earnings that beat analysts' forecasts on Thursday, but Chief Executive Tim Cook said it is difficult to predict earnings beyond June because of uncertainty over US tariffs on China, a major production site for iPhones. Cook told CNBC that Apple is already sourcing about half of its iPhones for the US from India and most of its other products for the US from Vietnam, where tariffs are lower than they are on China.
US e-commerce giant Amazon, which also reported better-than-expected results on Thursday, soft-pedaled its forward earnings guidance, citing tariff uncertainties and recessionary fears.
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