Daily Buzz: 4 June 2025
Top News
Opposition leader wins South Korean presidency
South Korean opposition party leader Lee Jae-myung won Tuesday's presidential election, defeating conservative rival Kim Moon-soo in an election that was largely a referendum on disgraced former President Yoon Suk Yeol, who was impeached and removed from office. Turnout was the largest in almost 50 years.
Lee must now try to unite a country polarized by six months of political chaos and tackle serious economic problems. South Korea is a major car exporter and has been hurt by 25 percent US tariffs on vehicle imports. The Trump administration has also threatened to impose 25 tariffs on foreign-made smartphones, which would hit electronics giant Samsung.
Dutch government topples
The coalition government of Dutch Prime Minister Dick Schoof collapsed with just 11 months in office after far-right leader Geert Wilders withdrew from the four-party pact.
Among other issues, Wilders complained about lack of action on tighter asylum policies that would cut migration numbers. The crisis comes three weeks before the Netherlands is scheduled to host a summit of NATO leaders.
More deaths at Gaza food sites
A controversial Gaza aid group formed by the US and Israel said its food-distribution centers won't open on Wednesday. A day earlier, 27 Palestinians converging on a food site were killed by Israeli gunfire and up to 90 injured, according to Gaza officials. It was the third consecutive day of fatalities at sites run by the project, which uses armed guards and has come under global criticism for unhumanitarian methods.
Attacks on "civilians trying to access paltry amounts of food aid are unconscionable," UN human rights chief Volker Türk said in calling for an investigation into the deaths.
Russian bridge attacked
Ukraine said on Tuesday that it detonated underwater explosives, damaging the Kerch Bridge that connects Crimea and Russia. Traffic on the bridge was suspended twice during Tuesday, but the extent of damage isn't clear. The strike came two days after Ukraine used drones to attack bombers at four airfields deep inside Russia and a day after Russian-Ukraine talks in Istanbul produced another prisoner-swap agreement but no progress on a ceasefire.
'Shared humanity' appeal at Harvard
Jiang Yurong, the first Chinese student to address a Harvard graduation ceremony, called for "shared humanity" in an increasingly divided world. The speech by the graduate in international studies came after the Trump administration banned Harvard from enrolling foreign students and began revoking the visas of Chinese students, who comprise about a third of the almost 7,000 foreign students at Harvard.
Top Business
Nio reports wider loss for first quarter
Shanghai-based electric carmaker Nio said its net loss in the first quarter widened 30 percent from a year earlier, with deliveries of 42,094 vehicles dropping 42 percent from the fourth quarter of last year but rising 40 percent from a year earlier. It reported a loss of 6.75 billion yuan (US$930.2 million) on a 22 percent increase in revenue to 12 billion yuan. The company cited higher development and marketing expenses in the fiercely competitive Chinese electric-vehicle market.
The company predicted a better second quarter, with deliveries in April and May totaling 47,131 and cost-cutting measures in place. This month, the company started deliveries of four new or upgraded models: the ES6 SUV, the EC6 coupe, the ET5 mid-size sedan and the ET5T, a touring car.
China slams EU medtech ban
China condemned a decision by the EU to restrict Chinese medical-device makers from bidding on large public tenders, calling the move a "protectionist" measure that undermines fair trade. Foreign Ministry spokesman Lin Jian said on Tuesday that China supports resolving trade disputes through dialogue and opposes the EU's use of unilateral trade tools. The ban effectively bars Chinese firms from contracts valued at over 5 million euros (US$5.7 million) over the next five years.
Manufacturing activity cools
China's manufacturing activity in May shrank at its fastest pace since September 2022, according to the private Caixin/S&P survey. The index of purchasing managers came in at 48.3, dropping from 50.4 in April. The 50 mark separates expansion from contraction. Caixin said total new orders, an indicator of demand, contracted for the first time in eight months.
The official government index, released on Monday, showed factory activity notched up 0.5 point from April to 49.5. The Caxin/S&P index is considered the better indicator of activity at export-oriented firms and smaller businesses.
Economy & Markets
Shanghai home sales increase
Shanghai's housing market, a key indicator of China's property sector, continued a steady rebound in May, with sales of both new and existing homes posting double-digit growth, according to municipal data. New home sales rose 24 percent from a year earlier, and existing home sales gained 14 percent. Housing prices remained broadly stable. For the first five months of the year, prices of new homes were up 2 percent, while existing home prices notched up 0.5 percent.
Global growth forecast to slow
The 38-member Organization for Cooperation and Economic (OECD) said it expects global growth this year to slow to 2.9 percent from 3.3 percent last year, as US trade policies sour the outlook. It projects US growth to fall to 1.6 percent. The Paris-based organization, in a statement, said, "The global outlook is becoming increasingly challenging. Substantial increases in barriers to trade, tighter financial conditions, weaker business and consumer confidence, and heightened policy uncertainty will all have marked adverse effects on growth prospects if they persist."
The OECD also adjusted its inflation forecasts, saying the effects of tariffs could push US inflation to near 4 percent by the end of the year. For all Group of 20 countries, inflation is forecast at 3.6 percent.
Corporate
Xiaomi predicts profit this year
Xiaomi's electric-vehicle business is on track to turn a profit by the third or fourth quarter of 2025, Chief Executive Lei Jun told an investor conference on Tuesday. Lei also dismissed rumors that the company's new YU7 model will be priced at 235,900 yuan (US$32,800). "Final pricing will be confirmed one to two days before launch," he said, without specifying a date.
Xiaomi, which remains a major manufacturer of consumer electronics, invested 3.5 billion yuan on research and development of autonomous-driving technology for the YU7, Lei said. The company is also developing its own automotive chips and applying robotics technology at its car plant. He added that Xiaomi will stick to its long-standing policy of capping profit margins on hardware to 5 percent.
Temu platform loses US buyers
Daily US users of the direct-delivery, e-commerce platform Temu, which is owned by China's PDD Holdings, fell 58 percent in May, Reuters reported, citing a report from market intelligence firm Sensor Tower. Temu and fellow platform Shein were hit by the US decision to end duty-free entry of small, low-value parcels of cheaper clothing and household goods as part of the Trump administration's new trade policies.
Ping An Insurance to issue bonds
Ping An Insurance, a Chinese financial services company whose subsidiaries provide insurance, banking and asset management, is seeking to raise HK$11.8 billion (US$1.5 billion) in convertible bonds, Bloomberg reported. The bonds will carry a zero coupon and are due in 2030, terms of the offer show. The insurer will use the proceeds to develop its core business and support new initiatives in health and elderly care. The company's shares rose 1.9 percent in Hong Kong trading on Tuesday.
Disney cuts more jobs
US entertainment giant Walt Disney Co, which has a major theme park in Shanghai, announced hundreds more layoffs around the world, primarily affecting film, TV and finance departments. They follow the termination of 7,000 positions in a 2023 cost-cutting drive. The company employs about a quarter of a million workers, with some 60,000 based overseas.
