Daily Buzz: 9 May 2025

Top News

China-US trade talks

Speculation swirls around possible outcomes of US-China trade talks this weekend in Geneva. The New York Post reported that the Trump administration is considering a plan to slash the 145 percent tariff on Chinese imports by more than half as soon as next week. The White House dismissed the report. However, when asked, President Donald Trump said he would be open to speaking with Chinese President Xi Jinping if talks go well.

Some analysts said the gap between both countries' positions is so wide that no immediate breakthrough is possible. Analysts at Macquarie Bank doubted any "grand compromise" will emerge, noting that China's economic growth in the face of US import tariffs gives it a strong bargaining position.

UK, US tariff agreement

The UK has won the race to see which country will be the first to sign a trade deal with the US after the imposition of Trump tariffs. The accord announced on Thursday calls for 25 product-specific tariffs on US imports of British cars, aluminum and steel to be lowered, and for the UK to ease restrictions on imports of US ethanol and food products, including contentious chlorinated chicken and hormone-fed beef. However, a 10 percent general tariff on all UK imports will remain. The agreement came just days after the UK and India signed a landmark trade deal after three years of talks.

New pope elected

Chicago-born Robert Prevost, 69, became the first US cleric to be elected leader of the Roman Catholic church, taking the papal name Pope Leo XIV. He is expected to follow in the footsteps of Pope Francis, who died last month. Appearing on the balcony of St Peter's Basilica, the new pontiff called for peace and told a crowd of 100,000 that "evil will not prevail." He has previously criticized the Trump administration for its treatment of refugees and migrants.

Xi, Putin reaffirm close ties

Chinese President Xi Jinping, on a four-day visit to Moscow, and Russian President Vladimir Putin stressed the endurance of their political and economic ties after meeting. Xi said China and Russia, as major countries and permanent members of the UN, shoulder a "special responsibility" in opposing unilateralism and global bullying.

Top Business

China increases private-sector safeguards

China's first comprehensive legislation supporting private enterprise will come into effect on May 20. It enshrines principles of equal treatment, fair competition and legal protection for privately owned businesses. Key provisions include enhanced access to financing, equitable use of resources and strengthened legal safeguards.

Rate cut in the UK

The Bank of England cut interest rates by a quarter point to 4.25 percent to cushion the UK economy amid a warning that growth will slow 0.3 percent over the next three years. The move, widely expected, is the fourth rate cut since last August. The central bank noted uncertainty surrounding the impact of US trade policies.

Economy

EU retaliatory tariffs

The European Union said it is preparing to impose tariffs of about €95 billion (US$107 billion) on US imports if ongoing trade negotiations fail. The proposed retaliatory duties would target US products like aircraft, vehicles, chemicals and health equipment.

China's gold reserves

China's People's Bank of China added 70,000 ounces of gold to its reserves in April, the sixth consecutive month of purchases. That brought total gold reserves to 73.8 million ounces. China is the world's largest gold producer and consumer. Global gold prices have hit record highs since the US imposed sweeping tariffs on trading partners. In April, China's foreign-exchange reserves increased by US$41 billion to US$3.28 trillion.

Ukraine considers shift from the dollar

Ukraine is considering a move to replace the US dollar with the euro as the nation's reference currency. The proposal reflects deeper economic and political ties with Europe. Central Bank Governor Andriy Pyshnyi cited factors such as potential EU membership, increased EU defense support and global market volatility.

Corporate

Apple eyes AI search

Apple plans to integrate AI-powered search tools from OpenAI, Perplexity and Anthropic into its Safari browser, Senior Vice President Eddy Cue said in testimony at the US Justice Department's antitrust trial against Google. While not immediately replacing Google as default search engine, Apple is exploring use of an AI-driven search to potentially challenge Google's market dominance. The news rattled investors, sending shares of Google parent Alphabet down more than 7 percent.

Volvo bets on hybrids

Volvo unveiled its new XC70 SUV, its longest-range, plug-in hybrid to date as the Swedish carmaker seeks to improve its lagging position in the competitive Chinese market. Asia-Pacific products chief August Wu said plug-in hybrids and extended-range electric vehicles offer a way to catch up. Volvo plans to release seven new models this year to boost sales in China.

Siemens Healthineers profit warning

Siemens Healthineers, the medical arm of the multinational German company, warned that US tariffs could slash up to 300 million euros (US$336.8 million) from second-half operating profit. Chief Executive Bernd Montag said tariffs raise healthcare costs without system-wide benefits.