Daily Buzz: 6 May 2025

Top News

First trade deals near?

President Donald Trump said the first trade deals with some trading partners could be announced this week amid intense global interest in how the structure of such deals will affect Trump's sweeping tariffs announced in April. Trump did not name any countries, although talks with Japan, South Korea and India have been among the first known negotiations to take place.

New German chancellor

Friedrich Merz of the Christian Democrats will be sworn in today as new German chancellor, heading a center-right coalition with the Social Democrats. He vowed to reform Europe's largest economy. He also faces the diplomatic challenge of balancing US pressure and European interests.

Israel bolsters army

Israel's security cabinet approved military expansion with the aim of "capturing" Gaza, according to an Israeli official. Prime Minister Benjamin Netanyahu said the cabinet had decided on a "forceful operation" to destroy Hamas and rescue remaining hostages held in Gaza.

EU lures American scientists

European Commission President Ursula von der Leyen confirmed the EU would set up a "super grant" program, starting with 500 million euros (US$566 million), to attract scientists, particularly those from the US who have faced funding cuts under the Trump administration.

Snooker 'cyclone'

Zhao Xintong, 28, nicknamed "the Cyclone," made history on Monday by becoming the first player from China to win the World Snooker Championship. He defeated Welshman Mark Williams 18-12 in the Sheffield final in England.

Top Business

Flick flack Down Under

Australia and New Zealand, two popular movie locations that offer tax incentives to movie studios to film on their shores, vowed to support their industries following US President Donald Trump's announcement that movies filmed abroad would face 100 percent tariffs if they air in the US. Trump justified the new duties as a way to save an American industry "dying fast."

Australia, the site of location for films like Marvel's "Thor: Love and Thunder," and Legendary Pictures' "Godzilla vs Kong," has shelled out A$540 million (US$350.9 million) in tax incentives since 2019, according to Reuters. About a third of neighboring New Zealand's annual NZ$3.5 billion (US$2.1 billion) film industry comes from US productions. The popular "Ring Trilogy" was filmed there.

Rural bank reform accelerates

Guangdong Rural Credit Cooperative said it will establish a provincial commercial bank in 2025 as part of regional financial reforms in the populous southern province. The move aligns with China's broader push to promote bank mergers and "streamlined growth" to stabilize the sector. Since 2022, several other provinces have set up provincial rural commercial banks.

Economy

Yuan gains, oil falls

In offshore trading, the Chinese yuan rose to a six-month high of 7.2 per US dollar on May 5, buoyed by a weaker greenback and renewed hopes for improved US-China trade ties. Market speculation that Washington favors stronger Asian currencies, coupled with Beijing's trade dialogue signals, underpinned gains. Meanwhile, oil prices have fallen to near four-year lows after OPEC+ pledged to increase output by 411,000 barrels per day in June. Global benchmark Brent crude settled down 1.7 percent at US$60.25 at the end of New York trading on Monday.

Wariness returns

US stock markets ended a recent rally on Monday as investors turned their sights back on US tariffs and the state of the economy. US April trade data is due out on Tuesday, and the Federal Reserve holds its monthly meeting on interest rates this week. The S&P 500 index lost 0.64 percent.

Corporate

Xiaomi rebrands automated driving

Xiaomi has rebranded its autonomous driving system "Pilot Pro" to "Assisted Driving Pro" amid mounting public and regulatory scrutiny following accidents involving two of its SU7 vehicles. The name shift comes as makers of electric cars have been accused of overhyping automated driving technologies and giving motorists a false sense of security.

Pharma head under investigation

Shenzhen-listed Qianjiang Yongan Pharmaceutical on Monday released a statement confirming that company President Chen Yong is under investigation and at risk of detention. It didn't elaborate. The company's share price surged nearly 60 percent between April 21-29, before plunging 10 percent on April 30, the last trading day before China's May Day holiday.

TikTok's influential fan

President Donald Trump, citing "a little warm spot in my heart" for short-video online platform TikTok, said he would consider another reprieve if a deal for its China owner ByteDance to divest itself of TikTok operations in the US isn't reached by a June deadline. Trump has already extended the deadline once. The US Congress last year passed a law banning TikTok if ByteDance doesn't sell its US operations. TikTok has 170 million monthly active users in the US.