Global Pulse

分类： business

  • Asian stocks are mixed after big tech sell-off

    Asian stocks are mixed after big tech sell-off

    HONG KONG – Global financial markets entered a new phase of volatility on Wednesday, as a broad sell-off of high-flying artificial intelligence-linked technology stocks that started on Wall Street spilled across Asian trading floors, leaving regional benchmarks mixed. The pullback comes after months of steep gains for tech and semiconductor shares in Japan and South Korea, driven by feverish investor enthusiasm around the global AI boom, making the sharp two-day decline a key test of market sentiment.

    U.S. stock futures also pointed to conflicting direction early Wednesday, as investors continued digesting the previous session’s losses on Wall Street. On Tuesday, the benchmark S&P 500 dropped 1.4%, the tech-heavy Nasdaq composite slid 2.2%, and the Dow Jones Industrial Average closed down a modest 0.1%. Leading the downward move were major U.S. tech and semiconductor names: memory chip giant Micron Technology plummeted 13.2%, while AI leader Nvidia shed more than 4.1% of its value.

    In South Korea, one of the markets most exposed to the AI chip supply chain, the benchmark Kospi index managed a slight 0.5% rebound to 8,241.23 on Wednesday, clawing back a small fraction of the 10% nosedive it took a day earlier. The recovery was uneven across the country’s top tech stocks: Samsung Electronics gained 3.7% a day after it plunged 12.3%, while another top blue chip, SK Hynix, continued to fall, dropping 3.6%.

    Japan’s Nikkei 225, which has surged to record highs this year fueled by AI-related gains, extended its losses for a second session, dropping 1.1% to 68,991.77, after falling 3.6% on Tuesday. Across other tech-heavy Asian benchmarks, Taiwan’s Taiex fell 2.5%, echoing the global pullback for AI-linked shares. Hong Kong’s Hang Seng Index edged up a marginal 0.1% to 23,364.72, while mainland China’s Shanghai Composite slipped 0.3% to 4,096.14. Australia’s S&P/ASX 200 posted a small 0.1% gain to close at 8,797.00.

    Analysts note the sharp swings highlight how quickly volatility has risen for the tech stocks that have led global market gains this year. “This is an illustration of rising volatility” in AI-exposed equities, explained James Reilly, senior markets economist at Capital Economics. Reilly noted the volatility is particularly pronounced in South Korea, where domestic retail investors have taken on a growing share of trading activity in recent months. The pullback has sparked ongoing debate among market participants over whether the decline is merely a broad profit-taking exercise after months of gains, or a sign of shifting investor sentiment toward overvalued tech names.

    Beyond equities, global commodity markets also moved lower on Wednesday, with oil prices falling as geopolitical tensions in the Middle East eased slightly. More commercial vessels have resumed transits through the Strait of Hormuz, a critical chokepoint for global oil supplies, and diplomatic talks between the U.S. and Iran aimed at a permanent de-escalation of conflict have made progress, according to market observers.

    “Price movements suggest the market expects a fairly rapid recovery in Persian Gulf oil supplies,” ING commodities strategists Warren Patterson and Ewa Manthey wrote in a client note. They added that while vessel traffic through the strait has increased in recent days, volumes remain far below pre-conflict levels. International benchmark Brent crude fell 0.7% to $76.30 per barrel on Wednesday, and U.S. benchmark West Texas Intermediate crude also dropped 0.7% to $72.70 per barrel. While prices have fallen below the $80 per barrel mark in recent trading, they remain elevated compared to the roughly $70 per barrel seen in late February before the outbreak of the latest regional conflict.

    In currency markets, the U.S. dollar held steady against the Japanese yen, holding at 161.55 yen. The euro weakened slightly, trading at $1.1364, down from $1.1382 in previous trading.

    Looking ahead, U.S. investors are turning their focus to upcoming inflation data due Thursday, which will shape the Federal Reserve’s next interest rate moves. The May personal consumption expenditures price index (PCE), the Fed’s preferred measure of inflation, is the key upcoming data point. Most economists currently predict the central bank will hold interest rates steady through the remainder of 2024, and is unlikely to implement additional rate hikes. Bond yields have remained elevated in recent sessions, as persistent inflation concerns have been amplified by global energy market shocks.

  • Tech stocks tumble on concerns over AI spending

    Tech stocks tumble on concerns over AI spending

    Global financial markets were jolted into a stark reality check on Tuesday, as a sudden broad sell-off across major technology equities sparked fierce debate over whether the months-long AI-driven rally has finally hit its ceiling. The tech-heavy Nasdaq Composite dropped roughly 2% by market close, with losses dragging down semiconductor manufacturers and chip industry indices around the world, ending a relentless 90-day upward climb that had pushed valuations to unprecedented levels.

    The sudden shift in sentiment also spilled over to one of the most high-profile new public listings of 2026: Elon Musk’s aerospace giant SpaceX. Just days after its 12 June initial public offering (IPO), the company endured an extraordinarily choppy trading session, with its share price dipping below the $150 IPO mark at one point before clawing back to a close of roughly $157, defusing some but not all of the day’s market anxiety.

    For months, global stock exchanges have been lifted by unbridled investor optimism around artificial intelligence, with widespread bets that AI would revolutionize corporate productivity and drive massive revenue growth for tech hardware and software providers. That enthusiasm pushed major indices to repeated record highs, but it also left valuations looking increasingly stretched, with the broader tech sector more than doubling from 2022’s cyclical lows by the start of June. On Tuesday, that momentum collapsed as investors began asking a question that had loomed over the rally for months: can real-world corporate AI adoption ever justify the sky-high share prices currently baked into the market?

    Semiconductor firms that have led the AI rally, including industry giants Nvidia and Intel, bore the brunt of the selling, as analysts warned that investors may have moved far too fast to price in demand for the AI hardware that powers corporate AI deployments. The anxiety quickly spread to newly listed growth stocks like SpaceX, which became the latest high-profile firm caught in the crossfire of shifting tech sentiment.

    Since its public debut, SpaceX has seen extreme price swings that highlight how sensitive unproven, high-growth newly listed companies are to broader market shifts. While some bullish traders viewed the stock’s quick rebound from sub-IPO levels as evidence of solid underlying fundamentals and sustained long-term investor interest in the fast-growing commercial space industry, sceptics argue that the wild volatility is just further proof of the speculative froth that has built up in today’s growth stock market.

    Market analysts are now deeply divided over what the sell-off means for the future of tech investing. Optimists, including Bank of America analyst Vivek Arya, frame the pullback as a healthy, temporary pause after a historic rally, arguing that profit-taking is a standard market movement after months of consistent gains. In a recent note to clients, Arya argued that persistent inflation paired with strengthening long-term demand for AI hardware will ultimately push sector earnings forecasts higher. He added that the tech industry is simply moving past the early phase of proving AI’s ROI, and entering a new stage focused on solving physical infrastructure and power supply constraints that have limited large-scale deployments.

    On the other side, a growing camp of sceptics counter that the days of easy double-digit market gains for AI stocks are over, pointing to cooling corporate IT budgets and ongoing broader macroeconomic pressures that will weigh on technology spending. Danni Hewson, head of financial analysis at UK-based investment platform AJ Bell, noted that the relative lack of large AI-focused tech stocks listed on London exchanges actually helped the FTSE 100 end the day in positive territory, even as major indices on Wall Street slumped.

    As the trading week progresses, all eyes will remain on upcoming corporate earnings reports from the world’s largest tech firms, which will be forced to demonstrate that their massive investments in artificial intelligence are delivering tangible bottom-line profits, rather than just generating hype to drive share prices higher.

  • Dongfang Electric hosts Open Day events in Uzbekistan

    Dongfang Electric hosts Open Day events in Uzbekistan

    Between June 16 and 17, 2026, China’s Dongfang Electric Corporation (DEC) organized a comprehensive series of Open Day initiatives across multiple locations in Uzbekistan, combining cultural exchange, clean energy outreach, and bilateral partnership building to strengthen long-standing ties between the two nations.

    The flagship event in Tashkent drew over 350 attendees, spanning delegates from Chinese state-owned enterprises operating in Uzbekistan, academic staff and students from Tashkent State Technical University, and correspondents from the country’s leading local media outlets. The gathering featured two core components: an exhibition showcasing DEC’s decades of progress in advancing high-quality collaboration under the Belt and Road Initiative, and a dedicated interactive zone for visitors to experience traditional Chinese culture firsthand.

    Attendees participated in hands-on activities ranging from trying Chinese calligraphy to co-creating a large thematic painting titled “China-Uzbekistan Friendship across Mountains and Seas,” and sampled specialty Liangshan buckwheat tea, gaining direct exposure to the unique charm of China’s cultural heritage.

    Parallel to the central Tashkent event, DEC hosted tailored Open Day programming at its active project sites across four Uzbek regions: Qashqadaryo, Samarkand, Surxondaryo and Jizzakh. Standout activities at these regional sites included the official unveiling of the Central Asian Tortoise Nature Reserve, the donation of clean energy equipment models to local educational institutions, live demonstrations of DEC’s AI-powered operational robots, and cultural sharing sessions explaining the traditions and history of China’s Dragon Boat Festival. These on-site events were explicitly designed to boost local public understanding of zero-emission energy technologies and highlight the far-reaching benefits of global sustainable development cooperation.

    In recent years, China-Uzbekistan bilateral cooperation has expanded steadily across key sectors including energy infrastructure construction, clean energy development, technological innovation, and cross-border talent cultivation. Upholding the shared “China–Central Asia Spirit” that guides partnership between Beijing and Central Asian nations, DEC has emerged as a key contributor to Uzbekistan’s goal of maintaining a stable, reliable energy supply while driving inclusive economic and social growth. As of the event, DEC has delivered power generation equipment with a combined total installed capacity of 1.1 gigawatts to Uzbekistan, supporting the country’s fast-growing portfolio of solar power, hydropower, and grid-scale energy storage projects that underpin its transition to a low-carbon economy.

  • World Cup 2026: Why some US hotels aren’t cashing in on the tourism surge

    World Cup 2026: Why some US hotels aren’t cashing in on the tourism surge

    The 2026 FIFA World Cup hosted across the United States has already made history with unprecedented fan enthusiasm: a staggering 500 million ticket requests have been submitted, and nearly 90% of all available match tickets have been sold. No other event in global soccer has ever seen this level of audience appetite, but the story of the tournament’s impact on the U.S. hospitality sector is far more nuanced than these record-breaking ticket numbers suggest. Across host cities from Houston to Atlanta to Seattle, hoteliers, economists and soccer fans alike are working to unpack a confusing trend of divergent performance that defies early projections.

    Industry reports and analyst data paint a divided picture of hotel demand across the 16 host cities. On one hand, some markets have seen explosive growth that aligns with or exceeds pre-tournament expectations. Global travel platform Trip.com reports that cross-border hotel bookings for World Cup dates are up nearly 70% compared to the same period last year. Dallas has emerged as a standout, with group stage hotel bookings surging more than 1,400% year-over-year, driven largely by a flood of international travelers from Japan and South Korea. New York City, meanwhile, has become the top destination for high-income fans, with luxury properties seeing particularly strong demand.

    Data from hospitality intelligence firm Kalibri Labs shows that average daily hotel rates across host cities are roughly 20% higher than 2025 levels, with the largest price gains concentrated in major gateway cities like New York and San Francisco. But occupancy growth has been far slower than many operators predicted. Travelers are overwhelmingly clustering in major urban centers that offer robust public transit, a wide range of dining options, and standalone tourist attractions beyond the match venues themselves. As a result, hotels are generating higher revenue per available room from individual bookings, rather than filling a drastically larger share of their inventory.

    “What we are seeing is not a demand problem. It is a decision-making problem,” explained Laura Lee Blake, president and CEO of the Asian American Hotel Owners Association (AAHOA), in an interview with Middle East Eye. Blake noted that modern fans are taking far more time to weigh costs, travel logistics, and entry requirements before locking in hotel reservations, a shift from previous World Cup cycles. “International travelers are certainly paying closer attention to border policies, visa processing times, and geopolitical developments than they did in previous World Cup cycles, those factors can create friction, particularly for travelers who have multiple destination options,” she added.

    New York City perfectly illustrates this industry divide. CoStar Group data shows the city holds the highest occupancy rate among all U.S. host cities at 57% for key match dates, with an average nightly room rate of $583. For some independent operators, the World Cup bump has already exceeded expectations. Nile Sony, president of the Manhattan View Hotel in Queens, told MEE that his property has been completely sold out on many match nights, with reservations booked as far back as a year in advance—a rarity for almost any major event. “I wouldn’t say a major boost. But yes, a lot of advance reservations. You don’t normally see reservations made one year in advance for any event,” Sony said.

    A large share of the industry uncertainty traces back to FIFA’s unexpected accommodation strategy. Three years ago, FIFA pre-reserved massive blocks of hotel rooms across all 16 host cities to accommodate teams, official sponsors, and tournament staff. Most hoteliers operated under the assumption that roughly half of these reserved rooms would be released back to the open market before the tournament began. Instead, FIFA ultimately released 95% of the pre-blocked rooms, only retaining accommodation for match days and the night before each fixture. This sudden flood of thousands of extra rooms hit the market at a time when international travelers were already booking later than usual, leaving operators scrambling to replace the guaranteed revenue they had planned for.

    This disruption has been worsened by a pullback in traditional business travel. Large corporate conferences and executive retreats have largely avoided World Cup host cities, opting to reschedule or relocate rather than compete with soccer fans for limited flights, hotel rooms, and restaurant capacity.

    Hospitality analysts note this uneven pattern is not unusual for mega-events like the World Cup or Olympic Games. Most large international tournaments are what industry insiders call “average daily rate events” rather than “occupancy events,” meaning the biggest financial gains come from higher per-room pricing rather than massive spikes in the number of rooms sold. “We have always said this is going to be a room rate event with larger room rate increases and some occupancy increases,” Jan D. Freitag, national director of hospitality analytics at CoStar, told MEE. “That was the prediction, and that’s what’s going to happen.” Freitag also added that slow early bookings for knockout rounds are to be expected, since matchups and participating teams remain unknown until the group stage concludes, making it impossible for fans to lock in travel plans early. Trip.com’s data bears this out, showing far slower booking growth for knockout stage matches than for the already-decided group stage fixtures.

    Beyond tournament-specific logistics, many hoteliers point to broader policy headwinds that are discouraging international inbound travel. A 2026 survey from the American Hotel and Lodging Association found that 65 to 70% of responding operators view visa barriers and ongoing geopolitical tensions as major drags on World Cup-related demand. Overall inbound tourism to the U.S. fell 5.4% in 2025, amid tighter immigration enforcement and expanded travel restrictions affecting dozens of nations. Industry leaders say increased public visibility of Immigration and Customs Enforcement operations, stricter border scrutiny, and more rigorous visa requirements have all contributed to a global perception that the U.S. is a less welcoming travel destination than it has been for previous major international events.

    These concerns are not limited to cities hosting matches. Even properties in non-host cities that expected spillover demand are seeing weaker results. Haseeb M., president of the Comfort Inn Chicago Schaumburg, which is located near a host city but not hosting matches itself, had projected a 4% revenue uptick from World Cup spillover. “We are now expecting the impact to be half of what was initially forecast,” he told MEE.

    The debate over World Cup hospitality performance extends far beyond hotel revenue. While large-scale sporting events do not always deliver the massive direct financial windfalls that hosts initially project, they remain high-impact opportunities to boost long-term tourism and shape a nation’s global brand. Against this backdrop, many industry figures worry that recent U.S. policy shifts will shape how international visitors perceive the country during one of the most-watched global events of the decade, with potential long-term consequences for future inbound travel.

  • Guinea bans exports of raw gold to boost local refining

    Guinea bans exports of raw gold to boost local refining

    In a decisive move to rework its gold mining sector and unlock greater domestic economic value, the West African nation of Guinea has enforced an immediate ban on all exports of unprocessed raw gold. The new policy, announced by President Mamadi Doumbouya following extensive consultations with industrial mining operators, small-scale artisanal producers and gold buyers, mandates that all gold extracted within Guinea’s borders must undergo refining domestically before export.

    President Doumbouya emphasized that for too long, foreign entities have captured the lion’s share of economic profits from processing Guinea’s natural resource exports, leaving the country with only limited gains from raw material sales. The core goals of the policy are to expand local job opportunities, build out the country’s domestic processing infrastructure, and grow the overall national economy, he added.

    Ranked as Africa’s sixth-largest gold producer by the World Gold Council, Guinea is far from alone in pursuing this resource sovereignty strategy across the continent. In recent years, a growing number of African nations have introduced similar regulations to capture more value from their mineral wealth: Tanzania and Uganda already enforce bans on unprocessed gold and copper exports, Ghana has pledged to implement a raw gold export ban by 2030, and Zimbabwe, the continent’s top lithium producer, will ban exports of unprocessed lithium concentrate starting in 2027.

    Gold stands as one of Guinea’s top export commodities, with official data showing the country shipped more than 22 tonnes of the precious metal in the first quarter of 2026 alone. To support the new domestic processing requirement, a large-scale new refinery is in the final stages of completion in Guinea’s capital, Conakry. With an annual processing capacity of 250 tonnes, the facility is sized to handle the country’s entire current gold output, eliminating concerns about infrastructure shortfalls for the new policy.

    Guinea’s government has issued a clear warning to foreign mining companies operating in the country: any violation of the new export ban will carry severe consequences, including potential revocation of operating licenses and termination of existing mining contracts. Beyond gold, Guinea holds another critical position in global commodity markets as the world’s largest producer of bauxite, the core raw material for aluminum production.

  • Alan Greenspan, architect of the modern American economy, dies aged 100

    Alan Greenspan, architect of the modern American economy, dies aged 100

    Alan Greenspan, the legendary former chair of the U.S. Federal Reserve who steered the American economy through nearly 20 years of historic growth and polarizing policy decisions, has died at the age of 100. His wife, NBC News chief foreign affairs correspondent Andrea Mitchell, confirmed the news in a statement released by the network, noting he passed away from complications related to Parkinson’s disease.

    In her statement, Mitchell remembered Greenspan as “a giant of a man who helped shape the US economy for decades under presidents of both parties, but was always honest in acknowledging his mistakes.” For 19 years between 1987 and 2006, Greenspan held what is widely described as the most powerful unelected position in the United States, second only to the presidency in its influence over global financial markets. His tenure at the Fed overlapped with the longest period of sustained economic expansion the U.S. had seen in a generation, earning him a reputation as the quiet “god in the machine” of American finance.

    Born in New York City in 1926, Greenspan’s path to the top of global finance was far from conventional. Raised by a single mother who worked at a local furniture store, Greenspan first trained as a musician, studying clarinet at the prestigious Juilliard School and touring nationally with big bands alongside jazz legend Stan Getz. While his bandmates spent off-hours socializing, Greenspan occupied himself by balancing the band’s books and teaching himself economic theory, eventually switching studies to economics at New York University at age 19. There, he adopted the free-market principles that would define his entire career, later coming under the profound influence of objectivist philosopher Ayn Rand, who nicknamed him “the undertaker” for his preference for dark, muted formal wear. Greenspan embraced Rand’s core belief that unconstrained self-interest creates the most efficient society, a view that led him to denounce the welfare state as a system that only confiscated wealth from productive members of society early in his career.

    Greenspan first entered national politics during Richard Nixon’s 1968 presidential campaign, after earning a reputation as an accurate forecaster who had correctly predicted the Eisenhower-era recession. He went on to lead Nixon’s Council of Economic Advisers, a post he retained under President Gerald Ford. Later, President Ronald Reagan tapped him to lead a bipartisan commission on Social Security reform before appointing him to the top Fed role in 1987. Greenspan faced his first major crisis within months of taking office: the October 1987 stock market crash that erased more than 30% of U.S. equity value in a single session. His deft response—issuing a public statement reinforcing confidence in the U.S. economy and opening the Fed’s liquidity taps to stabilize banks—earned him widespread acclaim, and established a playbook he would reuse for decades to come during market crises, from the savings and loan meltdown to the Mexican peso crisis and the 1997 Asian financial crisis. That approach, built on cutting interest rates and injecting liquidity during downturns, would later evolve into the policy known as quantitative easing that central banks around the world still use today.

    Over his five consecutive terms as Fed chair, Greenspan retained his post through bipartisan presidential administrations. Though George H.W. Bush later blamed him for a slow economic recovery that cost him re-election, President Bill Clinton, a Democrat, asked Greenspan to stay on, a decision that was followed by the late 1990s tech-driven boom that became the high point of his tenure. Away from the boardroom, Greenspan was an enthusiastic tennis player, and after a short early marriage and a high-profile relationship with broadcast legend Barbara Walters, he married Mitchell in 1997.

    For all his success, Greenspan’s legacy remains deeply contested. His policy of maintaining low interest rates through the 1990s was blamed for fueling the dot-com bubble, which popped in 2000, leading to a broad market downturn. Nobel Prize-winning economist Paul Krugman was among the most prominent critics, arguing that Greenspan refused to raise rates to cool irrational market exuberance, opting instead to clean up the damage after the bubble burst. After the 9/11 terrorist attacks, Greenspan again cut rates aggressively to shore up the economy, a decision that critics argue fueled an unprecedented housing bubble in the mid-2000s. His long-held opposition to financial regulation, particularly oversight of complex derivative products, allowed risky subprime mortgage lending to expand unchecked, culminating in the 2008 global financial crisis that triggered the worst recession since the Great Depression—just two years after Greenspan retired from the Fed.

    In a striking 2008 congressional testimony following the crash, Greenspan openly acknowledged his mistakes, admitting he had placed too much faith in the ability of banks to self-regulate. “I have found a flaw. I don’t know how significant or permanent it is. But I have been very distressed by that fact,” he told lawmakers, a rare display of humility from a figure who had been treated as an infallible financial guru for decades.

    Even in his 90s, Greenspan remained an active and influential voice in global economic discourse. He was awarded the Presidential Medal of Freedom, the highest civilian honor in the U.S., and an honorary knighthood by Queen Elizabeth II for his contributions to global economic stability. He publicly criticized Brexit as the “worst possible outcome” for the global economy, pushed back against former President Donald Trump’s populist economic agenda, and as recently as 2023 warned that the Biden administration was raising interest rates too quickly, risking recession. He celebrated his 100th birthday in March 2026, just three months before his death.

    Today, Greenspan is remembered as the figure more than any other who shaped the modern U.S. economy. Over his 19-year tenure, U.S. gross domestic product contracted just once, a record of steady growth that few central bank leaders have ever matched. Though his reputation was permanently damaged for many by the 2008 crisis and his long-standing ideological resistance to regulation, his policy innovations and ability to steady financial markets during crises remain a core part of central banking practice around the world.

  • Asian shares are mixed and US futures fall as Iran talks make progress

    Asian shares are mixed and US futures fall as Iran talks make progress

    HONG KONG – Global financial markets kicked off the trading week with divergent performance across Asian equities on Monday, as conflicting tailwinds from the booming global artificial intelligence sector and tentative progress in U.S.-Iran negotiations shaped investor sentiment.

    Markets in Northeast Asia led regional gains, powered by a widespread rally in AI-linked assets that pushed Japan’s benchmark index to a new intraday all-time record. The Nikkei 225 closed 1.6% higher at 72,364.82, after touching an unprecedented peak of 72,831.73 during morning trading. SoftBank Group, the Japanese multinational investment giant with extensive exposure to AI startups and emerging technology, climbed 2.4% by closing bell, while leading chip equipment manufacturer Tokyo Electron gained 2.3% to extend its 2024 rally.

    South Korea’s benchmark Kospi index also notched a solid gain, rising 0.4% to 9,084.37 to hold near its own all-time high. The advance was again led by AI-linked semiconductors, with top memory chip producer SK Hynix surging 4.7% on sustained demand expectations for AI server components. Across the Taiwan Strait, the Taiex index rallied 2.8%, while India’s Sensex added a more moderate 0.6% to close in positive territory.

    Despite the strong upward momentum across much of Northeast and South Asia, some market analysts have sounded a note of caution. “We’re seeing another strong market today,” noted Neil Newman, managing director and head of strategy at Astris Advisory Japan. He warned that from a valuation perspective, the Japanese market is “probably getting a little stretched” at current levels, particularly against the backdrop of escalating geopolitical instability in the Middle East.

    Regional performance was far from uniform. Hong Kong’s Hang Seng Index dropped 1% to 23,690.86, while Australia’s S&P/ASX 200 slipped a modest 0.1% to 8,822.80. Mainland China’s benchmark Shanghai Composite bucked the downward trend for major East Asian emerging markets, edging 0.2% higher to close at 4,098.01.

    The biggest macro market mover of the day was newfound optimism around U.S.-Iran negotiations aimed at ending ongoing hostilities, which pulled global oil prices lower. International benchmark Brent crude fell 1.4% to trade at $79.42 per barrel on Monday, down sharply from levels seen earlier this year amid regional conflict. Before the outbreak of hostilities in late February, Brent traded at roughly $70 per barrel.

    High-level diplomatic talks between U.S. and Iranian negotiators wrapped up in Switzerland early Monday, with lower-level technical discussions scheduled to continue through the rest of the week. While Tehran claimed it had shut down the Strait of Hormuz, a critical global chokepoint that carries roughly a fifth of the world’s daily oil and gas trade, over the weekend, U.S. officials confirmed that commercial shipping traffic through the waterway continued uninterrupted.

    Even with the tentative progress toward a diplomatic resolution, commodity analysts warn that the path to a permanent peace deal remains fraught with risk. “Moving towards a more permanent deal will be challenging, with very real risks of a flare-up in hostilities,” ING commodities strategists Warren Patterson and Ewa Manthey wrote in a client note released Monday.

    Across the Atlantic, U.S. stock futures pointed to a lower opening on Wall Street as investors turned their attention to upcoming inflation data that will shape Federal Reserve monetary policy expectations. The U.S. Bureau of Economic Analysis is set to release May’s personal consumption expenditures (PCE) price index – the Fed’s preferred inflation gauge – this Thursday, with investors parsing the data for clues about the timing of potential interest rate cuts.

    In currency markets, the U.S. dollar appreciated slightly against the Japanese yen, rising to 161.68 yen from 161.22 yen in Friday trading. The euro edged lower to $1.1454, down from $1.1473 at last week’s close.

    Associated Press senior producer Mayuko Ono in Tokyo contributed reporting to this article.

  • High oil prices drive a surge in Chinese electric vehicle sales, but charging networks lag behind

    High oil prices drive a surge in Chinese electric vehicle sales, but charging networks lag behind

    The ongoing conflict in Iran and subsequent disruptions to global energy flows through the Strait of Hormuz have triggered a rapid shift in the global electric vehicle landscape, creating an unprecedented opportunity for Chinese automakers to expand their footprint across developing economies in Asia and Africa. As skyrocketing fossil fuel prices push cash-strapped drivers and cash-strapped governments to embrace vehicle electrification, the explosive growth of EV imports has exposed a critical bottleneck: a widespread lack of matching charging infrastructure.

    Blockades of the Strait of Hormuz, a strategic chokepoint through which roughly 20% of the world’s daily crude oil and liquified natural gas shipments pass, sent energy prices soaring across key importing regions. The supply shock first hit major Asian fuel importers, then spread quickly to African markets, accelerating a transition to electric mobility that was already gaining traction across the developing world.

    Trade data underscores the speed of this shift. A recent analysis of Chinese customs data by energy think tank Ember shows that China’s global EV exports hit an all-time high of $9.4 billion in April alone. Shipments to markets including Australia, Brazil, Southeast Asia and East Africa have surged at double-digit rates. Official data from the Chinese Association of Automobile Manufacturers adds that China exported roughly 435,000 passenger electric vehicles and plug-in hybrids in May, more than doubling the volume recorded in the same month one year prior.

    For individual drivers across developing Asia and Africa, the switch to EVs is being driven by immediate household budget pressures. In these regions, transport consistently ranks among the largest recurring expenses for average families. Limited public transit networks, long daily commutes, and widespread reliance on private vehicles leave households extremely vulnerable to volatile global fuel prices. A 2024 study from Stellenbosch University in South Africa’s Western Cape province found that transportation alone accounts for nearly 20% of total household spending in the country. For gig workers like Nguyen Thien Bao, a delivery and ride-hail driver in Hanoi, Vietnam, the cost savings are transformative. “Before, so much of my income went into fuel,” he explained. “Now, I can actually save some money.”

    Governments across the developing world are also prioritizing the EV transition to cut ballooning oil import costs and reduce the heavy fiscal burden of fuel subsidies. Laos has gone as far as banning imports of new fossil fuel-powered vehicles through 2026 to speed up the shift, while Ethiopia has enacted a similar ban on non-EV imports to cut energy dependency. Data from China’s Commerce Ministry shows that African imports of Chinese EVs reached roughly 44,000 units in 2025, marking a 130% year-over-year jump. The International Energy Agency (IEA) projects that global electric car sales will continue to climb through 2026, hitting 23 million units and accounting for nearly 30% of all new cars sold worldwide. Up from one in four new cars sold globally last year, this growth is heavily supported by Chinese manufacturers, which currently supply around 60% of all electric vehicles sold worldwide.

    Major Chinese automakers are already acting on this momentum. “In the next five years, we will accelerate our overseas expansion,” Jerry Gan, CEO of leading Chinese automaker Geely Auto, announced at a company event in March, as the group expands its EV footprint across Southeast Asia and other emerging regions. While Chinese manufacturers have dominated growth in developing markets, regional players are also reaping benefits: Vietnam’s VinFast reported a 42% year-over-year increase in first-quarter revenue, driven largely by rising EV demand across Southeast Asia.

    Despite the explosive growth of EV adoption, this rapid shift has outpaced the buildout of required charging infrastructure, creating what analysts describe as a classic “chicken-and-egg problem.” Without enough charging stations, many drivers remain hesitant to switch to fully electric vehicles, but low EV adoption rates do not create enough demand to justify large-scale infrastructure investment. Data from across the region highlights this gap: Thailand currently counts roughly 4,600 public charging locations serving more than 424,000 battery EVs and plug-in hybrids, working out to one charging location for every 92 vehicles. For ride-hail drivers like Yutthana Samranwong in northern Thailand’s Phitsanulok province, securing an open public charging slot online is often an unpredictable gamble. “It’s a bit of a headache,” he said, noting that the strain on Bangkok’s charging networks has even led some drivers to consider returning to gasoline-powered cars.

    The gap is even more pronounced in lower-income African markets. As of mid-2025, Ethiopia, which has banned non-EV imports to speed up electrification, only had around a dozen public charging stations operational, despite government estimates showing more than 1,170 stations are needed to meet current demand. Forty additional stations are currently under construction in the capital Addis Ababa. “In developing markets, affordability can accelerate the shift, but the pace of adoption will still depend heavily on infrastructure, power reliability and use case,” noted Chris Liu, a technology analyst with research and advisory firm Omdia.

    To resolve this bottleneck, many emerging economies are turning to state-owned utilities to lead charging network buildout, a model analysts say could be replicated across other developing regions to speed the transition away from fossil fuels. Indonesia already has more than 4,500 public charging stations deployed by its state-owned power utility PLN. Across Africa, where only around 2,000 public EV charging stations exist today (with South Africa holding the largest share), state utilities are stepping in: Kenya Power, the country’s state-controlled electricity provider, plans to construct 44 new charging stations within the next 12 months.

    “Utilities are recognizing that electric mobility will become a meaningful source of future electricity demand,” explained Ndia Magadagela, co-founder and CEO of South African commercial EV leasing firm Everlectric. Analysts note that state utilities are uniquely positioned to lead this work, as they are already integrated into national grid planning, electricity pricing and distribution infrastructure. Large Chinese automakers, by contrast, typically have little incentive to invest heavily in charging networks outside of their home market, leaving a gap that public entities can fill.

    “At that stage, government support for infrastructure could help accelerate adoption,” explained Paul Gong, head of UBS’ China automotive industry research, echoing the broader consensus that public investment is the most viable path to breaking the current infrastructure deadlock and unlocking continued growth of electric mobility across the developing world.

  • Is Germany looking again at coal-powered electricity?

    Is Germany looking again at coal-powered electricity?

    For decades, Germany has anchored its clean energy transition around a defining national policy: kohleausstieg, the planned phase-out of all coal-fired power generation. As Europe’s largest coal consumer and the fourth biggest globally, trailing only China, India, and the United States, Germany’s progress on this initiative carries global weight for climate action. Initially, Berlin pledged to fully eliminate coal from its power mix by 2038, with an accelerated target of 2030 for lignite — the high-pollution, low-grade soft coal that makes up much of the country’s domestic coal reserves. Today, coal accounts for 20% of Germany’s total electricity output, a share the country planned to shrink dramatically as it scales up wind and solar capacity; as of 2025, renewables already supply 59% of the nation’s power, meeting more than half of annual demand.

    To replace coal as a reliable baseload and backup for intermittent wind and solar output, particularly during high-demand winter months, Germany originally planned to pivot to natural gas, a fossil fuel that produces roughly half the carbon emissions of coal. Natural gas currently makes up 13% of Germany’s electricity generation. But a recent global energy shock, triggered by soaring gas prices in the wake of rising geopolitical tensions between the U.S. and Iran linked to the Israel conflict, has upended these plans. The price surge has pushed a growing number of major economies to reverse course on coal: Japan has relaxed regulatory rules to expand coal-fired plant operations, Italy has pushed back the planned closure of its remaining coal facilities from an earlier target to 2038, and India has delayed scheduled maintenance shutdowns of existing coal plants to keep output high. The question now hangs over Germany: will the country also backtrack on its landmark coal phase-out?

    The debate has been reignited by comments from Chancellor Friedrich Merz, who stated in March that “We must supply this country with electricity. I am not prepared to jeopardise the core of our industry simply because we have adopted phase-out plans that have become unrealistic.” His remarks have sparked speculation that Germany could extend coal operations, driven by two core challenges: energy supply reliability and cost. Germany holds the largest lignite reserves in Europe and the third largest in the world, giving it full energy independence for this fuel at a far lower cost than imported natural gas. By contrast, Germany relies on imports for 95% of its natural gas needs, leaving it extremely vulnerable to global price volatility. Adding another layer of complexity, Germany closed its final nuclear power plants in 2023, eliminating nuclear as an alternative low-carbon baseload option. For energy producers, the appeal of reversing course on coal is clear: LEAG, Germany’s second-largest lignite miner, has openly welcomed discussions of a reprieve for coal power, noting that it already expanded lignite output in 2022 to offset lost Russian gas imports following Moscow’s full-scale invasion of Ukraine. “We already demonstrated our ability to quickly draw on reserves to return to the market when the situation demands it,” the company said in a statement, adding that it supports the government’s renewed focus on long-term supply security.

    But environmental researchers and climate advocates argue that doubling down on coal would derail Germany’s energy transition. “More coal is not the answer,” insisted Hauke Hermann, a senior researcher at independent environmental think tank Öko Institute. Instead, Hermann argues that Germany should accelerate the expansion of renewable energy capacity to resolve supply gaps. Major industrial groups, meanwhile, are calling for clear, long-term policy certainty to support business investment. “Our industry needs reliable energy,” said Wolfgang Große Entrup, director general of the German Chemical Industry Association (VCI). “Renewable energy alone cannot yet guarantee this… Companies will only invest billions if they can trust that energy will remain reliably available at competitive prices in the future.”

    Notably, almost no mainstream political faction outside the far-right Alternative for Germany (AfD) is calling for scrapping the coal phase-out entirely. The debate instead centers on a modest compromise: extending operations for a small group of existing facilities. The proposal in question covers six coal-fired plants running on imported hard coal, a fuel with lower emissions than domestic lignite. These plants are currently only activated as backup capacity during periods of high demand, such as prolonged cold winters. Owner Steag Iqony Group has urged policymakers to allow the plants to run full-time, arguing that temporary full operation could power millions of households while strengthening supply security and lowering energy costs. A parliamentary committee established in March is currently reviewing the proposal.

    The biggest barrier to a final decision lies in Germany’s ruling grand coalition, which splits power between the center-right CDU/CSU bloc and the center-left SPD. The two parties hold starkly opposing views on extending coal operations: CDU/CSU leans toward extending capacity to protect industrial competitiveness and keep costs low, while SPD opposes any rollback of climate commitments. SPD energy spokeswoman Nina Scheer warned that loosening coal rules would be “counterproductive for the energy transition and mean new fossil lock-in effects.” On the other side, CDU deputy leader and Saxony Minister-President Michael Kretschmer argued that “Germany, as a major industrial nation, must do everything in its power to ensure that energy remains affordable. The energy transition must be completely recalculated. It should not be a matter of [original arbitrary] deadlines, but rather a matter of realistically considering security of supply and affordability.”

    The German federal government is set to make a final decision this year on whether to uphold the 2030 lignite phase-out deadline, or allow limited coal capacity to be retained as a strategic reserve for a temporary period. A statutory review of the coal phase-out, originally launched to assess whether the transition could be accelerated, is scheduled for publication in August. The review will evaluate the policy’s impact on energy supply, security, and consumer costs — and many observers now expect it to recommend slowing, rather than speeding up, Germany’s exit from coal.

  • O’Leary extends Ryanair contract in deal that could net him over £130m

    O’Leary extends Ryanair contract in deal that could net him over £130m

    Michael O’Leary, the iconic chief executive who transformed Ryanair from a minor regional player into Europe’s undisputed leading low-cost airline after taking the role in 1994, has committed to leading the group for another six years, with his new contract now running through to April 2032. The agreement includes a lucrative performance-linked bonus scheme that could see O’Leary take home total compensation exceeding €150m, the Irish airline confirmed in an official statement.

    Under the terms of the new deal, O’Leary will be eligible to exercise options to purchase 10 million Ryanair shares at a fixed strike price of €26.70 per share — a payout that will only activate if the company hits one of two demanding performance milestones. The options unlock if Ryanair achieves an annual group profit of €4 billion, or if its traded share price holds above €42 for 28 consecutive trading days. Ryanair emphasized that meeting these aggressive targets would generate significant long-term value gains for every investor holding shares in the company.

    Group chairman Stan McCarthy revealed that the Ryanair board first opened contract discussions with O’Leary earlier this spring, and the negotiation process included in-depth consultations with the airline’s largest institutional shareholders to align on terms. McCarthy noted in his comment that the process concluded successfully, with O’Leary agreeing to extend his tenure to drive the group’s ongoing growth, a outcome that McCarthy said delivers benefits to all Ryanair stakeholders.

    This latest bonus arrangement marks the second major performance payout O’Leary has been in line for in recent years. Last year, public reports confirmed that O’Leary was set to collect bonuses worth more than €100m after Ryanair shares closed above €21 per share for a 28th consecutive trading day in May 2025, meeting the performance threshold tied to his previous 2010s-era incentive scheme.