Daily Buzz: 16 May 2025
Top news
Ukraine-Russian talks
President Donald Trump said nothing will happen in peace talks between Russia and Ukraine until he personally meets Russian President Vladimir Putin, though no meeting is scheduled. In Istanbul, peace talks originally scheduled to start on Thursday may be held on Friday, with second-tier delegations and scaled down expectations. Putin, who proposed the direct talks, said he won't be attending. Ukrainian President Volodymyr Zelenskiy said he won't participate unless the Russian leader is present. US Secretary of State Marco Rubio expressed doubts about any meaningful breakthrough.
War in Gaza
A continuing Israeli offensive in Gaza has killed scores of Palestinians the past week, and the UN said hunger is rampant in the territory. US Secretary of State Marco Rubio said the White House is troubled by the humanitarian situation in Gaza, where no aid convoys have been allowed to enter since March 2. President Trump, meanwhile, repeated earlier comments that the US would like to take over the strip and make it a "freedom zone."
China-US shipments surge
Bookings for container ships from China to the US surged 277 percent following a temporary truce in the trade war and a bilateral reduction in tariffs for 90 days, according to shipping tracker Vizion. Weekly trans-Pacific shipments hit 21,530 twenty-foot equivalent units in the week ended May 12.
Top Business
Alibaba, JD.com earnings
Alibaba and JD.com, Chinese e-commerce rivals now engaged in a fierce battle in instant deliveries, reported gains in quarterly revenue and profits this week, with mixed results in meeting market expectations.
Alibaba reported a 22 percent rise in its fiscal fourth quarter ended March 31 to 29.85 billion yuan (US$4.1 billion), with revenue rising 7 percent to 236 billion yuan. The results were below forecast. Alibaba shares trading in New York fell 7.6 percent.
Earlier in the week, JD reported first-quarter revenue rose 16 percent from a year earlier to 12.8 billion yuan, with net profit jumping 53 percent. The results beat expectations. Company shares rose when the report was released, but they fell almost 4 percent in New York trading on Thursday.
Panama Canal sale
China's Ministry of Commerce reiterated that a contentious US$22.8 billion ports sale by Hong Kong-based CK Hutchison to a US consortium led by BlackRock cannot proceed while a mainland regulatory review is underway. The proposed sale includes Hutchison's interests in the Panama Canal. The US has pushed the sale to diminish China's influence in the region.
Economy
Oil prices slump
Global oil prices fell amid expectations that the US and Iran, a major oil producer, may soon reach a deal over Tehran's nuclear program. Benchmark Brent crude was down 2.2 percent at US$64.64 on Thursday after President Donald Trump said the US is close to secure a deal that could result in lifting economic sanctions on Iran.
Slower regional growth
The Asia-Pacific Economic Cooperation (APEC) group of 21 nations forecasts exports in the region will grow by only 0.4 percent this year due to US tariffs. That follows 5.7 percent growth last year. China is a member of the group.
India-US trade
The status of ongoing trade talks between India and the US remains murky as India denied a claim by President Trump that it has offered to drop all tariffs on goods imported from the US.
Meanwhile, India continues to attract investment from companies seeking to diversify away from China amid Sino-US trade tensions. Trump said he told Apple Chief Executive Tim Cook that he opposes plans by the company to shift manufacture of some US-bound iPhones to India from China in the next few years.
In another development, Foxconn, the world's largest contract electronics manufacturer and another big manufacturer on the mainland, said it received approval from the Indian government to build a semiconductor plant in a joint venture with India's HCL Group.
Corporate
Xiaomi advanced chip
Xiaomi, the world's third-largest smartphone maker, said on Thursday it will unveil a new, self-developed advanced mobile chip, called the XringO1, Reuters reported. Xiaomi Chief Executive Lei Jun gave no details in the announcement on his Weibo social media account. Xiaomi's push into mobile chip development comes as competition in China's smartphone market has been intensifying with rivals like Huawei and Apple.
Shein shifts strategy
Shein, a Chinese online, low-cost clothing retailer stung by the US decision to slap duties on small parcel deliveries from China, is leasing a huge warehouse in Vietnam to reduce its exposure to Sino-US trade friction, Reuters reported. It is renting 15 hectares of industrial land near Ho Chi Minh City. Shein has relied on China-made clothing for sale on its popular platform but is looking to source goods from Turkey and Brazil.
Walmart to raise prices
Giant US discount retailer Walmart said on Thursday it will have to raise prices on some goods because of US tariffs on imports from China. Chief Financial Officer John David Rainey said shoppers will start to see increases toward the end of this month and into June. The increases come as both China and the US lowered bilateral tariffs for 90 days, but duties on Chinese goods remain at about 30 percent.
Bridgewater bets on Alibaba
US asset management firm Bridgewater Associates raised its stake in Chinese e-commerce giant Alibaba to 5.66 million shares from 255,000 shares in the first quarter, according to a US Securities and Exchange filing.
