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MORNING BID AMERICAS - AI and 1984
What's important in the U.S. market and globally today by Mike Dolan, Editor at Large, Finance and Markets The same obsessions with the market continue in a new month. Iran and AI are still competing for the attention of investors, but AI is currently winning. The momentum from last week looks to be continuing into Monday. Below, I'll explain more. Listen to the latest episode of the Morning Bid Daily Podcast. Subscribe to the Morning Bid daily podcast and hear 'journalists' discuss the latest news in finance and markets seven days a weeks. AI AND 1984 The U.S. and Iran peace plan of last week was buried over the weekend as the two sides engaged in new military exchanges. Israel also advanced its incursions into Lebanon to fight the Tehran-backed Hezbollah. Donald Trump, the U.S. president, reiterated his claim on Monday that Iran was interested in a deal. However, whatever the outcome on the diplomatic front there is no relief for the Gulf and June is an important month for energy supply. Brent crude prices rose by over 3% to around $94 a barrel after falling 2% on Friday. The AI frenzy has continued. Jensen Huang, Nvidia's Jensen Huang, unveiled on Monday a new chip which puts AI capabilities into desktop and laptop computers. Experts say this will revolutionize how users interact with AI. Samsung's shares in South Korea rose another 10% Monday on a variety of news stories, including the start of shipments for its new HBM4E processor and expectations of a meeting between Huang and Nvidia later this week. South Korean shares increased by more than 4%. Official data released on Monday confirmed that the global demand for chip products is real. South Korean exports grew by over 50% in May compared to the same month last year, marking the highest annual rate since 1984. According to the latest survey by the Chinese government, factory growth in China slowed in May as export demand dropped. Washington reportedly halted Nvidia chip deliveries to Chinese subsidiaries outside China. ISM's U.S. Manufacturing Survey for May will be released later today. The U.S. Employment report for May is due on Friday, which will start off another busy week of macrodata. Analysts are a little weary of the current themes, but there will be more factors to consider in June. This month, central bank meetings could result in interest rate increases. Meanwhile, a UK by-election that is crucial will bring the brewing leadership crisis to light. There may be a desire to explore other stock sectors. The Russell 2000 small-caps index is doing at least as good as the SOX chip index this year, despite the recent attention that tech has received with its explosive stock moves. Revolution Medicines shares soared by 20% before Monday's bell, after tests of the pancreatic cancer drug revealed that it doubled chances of survival. Chart of the Day South Korea's exports increased more than expected at the fastest annual rate in four decades in May, as an AI boom drove chip sales to record levels, boosting optimism about the trade-dependent economy. Preliminary trade data released on Monday showed that exports from Asia’s fourth largest economy, which is a bellwether of global trade, increased 53.2% compared to a year ago, reaching a record high of $87.75 Billion. The exports grew for the 12th month in a row on an annual basis, the largest percentage increase since January 1984. The benchmark KOSPI index has more than doubled this year. Watch today's events * U.S. ISM & S&P Global Manufacturing PMIs for the month of May (9:45-10 a.m. EDT) EDT) Want to receive Morning Bid every morning in your email? Subscribe to the newsletter by clicking here. Follow us on LinkedIn, X and ROI. The opinions expressed here are the author's. These opinions do not represent the views of News. News is committed to the Trust Principles and adheres to the principles of integrity, independence, freedom from bias, and impartiality.
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Summit rises as lung cancer drug trial results show 15% higher survival rates than rival's
Summit Therapeutics shares rose up to 7% before bell ringing?after its ivonescimab treatment with China-based Akeso helped advanced lung cancer patients?live 15% longer than BeOne Medicines Tevimbra immunotherapy. Late-stage trial results revealed that in a head to head study conducted in China, patients with advanced non-small-cell lung cancer squamous who were treated with ivonescimab, chemotherapy and Tevimbra lived on average 27.9 months compared to 23.7 months when they received Tevimbra, chemotherapy and Tevimbra. Tyler Van Buren, TD Cowen's analyst, said: "This is a significant advancement in a situation?where other treatments have never found success." Ivonescimab belongs to a class of newer medicines called bispecific antibodies. These have two targets. It blocks the protein PD-1, which helps cancer to avoid immune attacks and a second called?VEGF, which can promote tumor growth. Summit Therapeutics holds the rights to the drug in the U.S.A., Canada Europe and Japan, through a $5 billion deal, while Akeso has the rights to China and the rest. This study included 532 patients newly diagnosed with advanced non-small cell lung carcinoma in stage 3 or 4. The study compared ivonescimab and Tevimbra in the first-line treatment. All patients received chemotherapy. The results of this study were presented in Chicago at the American Society of Clinical Oncology meeting. Faisal Khurshid, an analyst at Jefferies, said that since the study had only been conducted 'in China,' it was still necessary to see if the same benefits were seen in trials around the world, particularly in the United States and Europe. Julie Gralow is ASCO's Chief Medical Officer. She said that the new China-only data will not be used for U.S. approval. However, a separate global?late stage trial comparing ivonescimab with Merck's Keytruda should produce interim 'data' later this year. Summit's shares rose 2.7% in Monday premarket trading to $18.01. Stock has been mostly flat this year. (Reporting and editing by Pooja Deai in Bengaluru, Christy Santhosh from Bengaluru)
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Gold drops as inflation fears fuelled by renewed Middle East tensions
As renewed U.S. - Iran tensions increased, the dollar and oil price rose. This fueled fears of inflation as well as a longer-term outlook for higher interest rates. Gold spot was down by 0.8% to $4,498.89 an ounce as of 0909 GMT. It had hit a record high two weeks earlier. The yellow metal fell 0.9% in the month of May, marking its fourth consecutive monthly decline. U.S. gold futures for August delivery dropped 1.4% to $4,529.90. Dollars are now more expensive for holders of other currencies. The U.S. claimed it had struck Iranian military bases over the weekend, and Iran's Revolutionary Guards said on Monday that they had responded by targeting a U.S.-based base. This is the latest exchange of attack amid negotiations to end the three-month old war. Ricardo Evangelista, an ActivTrades Analyst, said that the optimism around negotiations between the U.S. & Iran aimed a?at ending?the standoff in 'the Strait of Hormuz' faded over weekend. As a result of this, energy prices rose, reinforcing Federal Reserve expectations and reviving inflation fears. Brent crude oil has increased by more than 3% since the last strikes. Oil prices that are higher can increase inflation and cause interest rates to remain high for longer. Gold is traditionally viewed as a hedge to inflation but in an environment of high interest rates, gold loses its appeal as it becomes a non-yielding investment. According to CME Group’s FedWatch tool, traders are pricing in a Fed rate increase this year. There is a 40% probability of a 'quarter-point' increase in December. This week, a number of Fed board members will be speaking. Major?data releases include the ISM manufacturing survey?and May payrolls report?on Friday. "Traders are closely monitoring this week's important data releases, as they have the?potential to reshape the expectations about the?future direction of Fed monetary policies, influencing the demand for the U.S. Dollar and, therefore, the performance of the gold prices," Evangelista stated. Spot silver increased 0.7%, to $75.79 an ounce. Platinum gained 0.4%, to $1.925.26, and palladium dropped 0.8%, to $1.343.55.
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Putin's fifth wartime "Russian Davos" is short on ideas for growth
The Russian President Vladimir Putin will host his fifth conference on wartime economics in St. Petersburg. His government is struggling to find a growth strategy, as the?Ukrainian attacks on the economy are hitting the economy. Businesses also see no end to this war. The $3 trillion economy of Russia, which is heavily dependent on commodities, shrank to 0.2% growth in the first quarter 2026 from 4.9% in 2024. Officials blamed high interest rates, Western sanctions and a strong ruble. The growth rate is expected to be a modest 0.4% in 2018. The Ukrainian drone attacks on Russian refineries, fertiliser factories and ports deep inside Russia have affected a large part of the economy. They have affected one quarter of the refining capacity and created the risk of fuel shortages during the driving season. Putin, who wants to see the economy grow again, has told his officials that they must find a way to restart growth. Businesses believe that ending the war in Ukraine is the best way to do this. The enthusiasm and cheers on the Russian stock exchange following each positive piece of news about U.S.-mediated peace talks with Ukraine, indicate their true answer, according to a senior corporate official who asked for anonymity. The Kremlin announced that peace talks which began with much pomp and circumstance in February of last year were put on hold for the time being, as the United States is preoccupied with the war in the Middle East. The Kremlin said that peace talks which began with great pomp in February last year are on hold?for now', because the United States is preoccupied by the war in the Middle East. LOST OPPORTUNITY Kirill Dmitriev has been promoting the potential economic benefits that a peace agreement could bring. He is the Russian point person in contact with Donald Trump's administration. A senior Russian banker who declined to be named said that Putin lost "a good chance" to make a deal last year and now the economy shows signs of instability. The St. Petersburg International Economic Forum runs from 3 to 6 June. Delegates will likely discuss strategies such as the redistribution labour into faster-growing industries and the promotion AI-powered digital platforms for e-commerce, banking and other sectors. Officials hope to see a rise in consumer demand. Oleg Vyugin is a former deputy chair of the central banking. He said that growth would be difficult to achieve with the interest rate at double digits and tax increases for the war. He said that the government had nothing to offer in terms of a recovery of economic growth. The factors that fueled Russian growth during the majority of Putin's rule -- foreign investment, energy revenue, government spending, falling rates, and more recently import substitution, digitization, and war-related demands -- are no longer present, or their potential has been exhausted. Anton Tabakh, chief economist at Expert RA Ratings agency, said: "The question to ask is what will drive the growth if consumers do not plan on increasing their spending and investments have declined for 'the past two years. Fiscal policy is also non-stimulative." EXTERNAL PUSH The government has enjoyed a temporary respite due to a surge in the price of oil, Russia's primary?export product, as a result of the conflict in the Middle East, and the near-closure of Strait of Hormuz. However, this is only expected to last a short time. Contrary to popular predictions, the Russian economy has remained resilient to sanctions throughout the conflict. This is in part due to its military production. In an interview, a Siberian parliament member made a rare criticism of the establishment. He said that the economy would not be able to survive the long-term continuation of "special military operations", as Russia calls the war in Ukraine. What are the development, capital expenditures, and investments that we can discuss? "Neither shells nor tanks have consumer value. The economy produces them, but they can't be consumed by the people," said Renat Suleimenov of the Communist Party, a Duma member. Russia, a country with a population of just 140 million, a small domestic equity market, and little foreign investment, is not able to rely on its own internal drivers for growth, as India and China can. It is therefore doomed to stagnation, until there is an external catalyst such as the lifting of sanctions. The economy needs external support. Mikhail Matovnikov is the head of Sberbank’s financial analysis center. (Reporting and editing by Gleb Brianski)
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Indian steelmakers are struggling with the resurgence in cheap Chinese imports
China's finished exports of steel to 'India' more than doubled to their highest level in at least two years in April, causing concern amongst the steel makers in India that they would be overwhelmed by low-cost products despite tariffs. According to data provided by the Indian government, China exported around 232,000 metric tonnes of finished steel during April. It was the largest exporter of this steel into the South Asian country. This is despite the fact that?India, which is the second largest crude steel producer in terms of production, had imposed import tariffs on certain grades from December for a three-year period, and this had managed to reduce imports from China. The data revealed that the majority of steel finished products imported into India were hot-rolled coils. Stainless steel products are exempt from import duties on hot-rolled coils. Tarun Khulbe is the chief executive of Jindal Stainless and he told? that low-priced steel?from China poses a problem for the local industry. He said that some of the?imports are being routed via countries like Vietnam, which is a part ASEAN and with whom India has a Free Trade Agreement. The data revealed that Vietnam was one of the top five steel exporters to India, with shipments increasing by more than four-fold to 59,000 tonnes. Khulbe stated that "such imports distort fair market practices and impact investments in the industry, affecting India's long-term competitiveness for manufacturing." A large private steel firm executive said that buyers are attracted by Chinese steel, which is anywhere between $11 to $37 cheaper per ton of hot rolled steel than local prices. A senior executive of another large steel company said that some of the hot-rolled rolls that came into India were distressed "cargo" that couldn't?reach Middle East due to the Iran War. According to commodities consultancy BigMint, imports from China will continue to rise in May. India became a net importer of goods in April, a stark contrast to previous months where shipments were slowed by tariffs. In 2025/26 China's exports of steel to India fell 39.4% from the previous year to 1.5 million tonnes, and India became a net exporter. Executives said that the demand for steel in India is increasing from the infrastructure and automotive sectors, as India's economy expands. In April, the consumption of finished steel reached 13 million tonnes, an increase of 8.2% on the previous year. (Reporting and editing by Muralikumar Aantharaman; reporting by NehaArora)
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Indian steelmakers are struggling with the resurgence in cheap Chinese imports
China's steel exports to India have more than doubled to the highest level in at least two years. This has caused concern among India's steelmakers who fear that they will be overwhelmed by low-cost products despite tariffs. According to data provided by the Indian government, China exported around 232,000 tons of steel finished in April. It was the largest exporter of this steel into the South Asian country. India, the second largest crude steel producer in the world, had imposed import tariffs on certain grades of steel for a three-year period that had managed?to slow imports from China. The data showed that the majority of steel finished products imported into India by China are hot-rolled coils followed by stainless steel. Stainless steel products are exempt from import duties on hot-rolled coils. Tarun Khulbe is the chief executive of Jindal Stainless and he said that low-priced steel imported from China was a problem for the domestic industry. He said that some of the imports are being routed through countries like Vietnam, which is part of ASEAN and with whom India has a Free Trade Agreement. The data revealed that Vietnam was one of the top five steel exporters to India, with shipments increasing by more than four-fold to 59,000 tonnes. Khulbe stated that "such imports distort fair market practices and impact investments in the industry, affecting India's long-term competitiveness manufacturing." An executive from a large, private steel company said that buyers are enticed by Chinese steel which is anywhere between $11 to $37 cheaper per ton than local prices. A senior executive of another large steel company said that some of the hot-rolled rolls that arrived in India were distressed cargo, which could not reach the Middle East due to the Iran War. According to commodities consultancy BigMint, imports from China will continue to increase in May. India became a net importer of goods in April. This is a stark contrast to previous months, when shipments were slowed by tariffs. In 2025/26 China's exports of steel to India dropped 39.4% from the previous year,?to 1.5 millions tons. India was also a net importer. Executives said that the demand for steel in India is increasing from the infrastructure and automotive industries as India's economy expands. In April, the consumption of finished steel reached 13 million tonnes, an increase of 8.2% compared to last year. (Reporting and editing by Muralikumar Aantharaman; reporting by Neha arora)
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Choose France Summit: France secured EUR93 billion of investment pledges
Emmanuel Macron, the French president, said on Monday that companies?have committed a 'total of EUR93 bn ($108 bn)?worth investments in France during this year's Choose France Summit. The projects will cover 71 initiatives and are expected to create over 15,600 jobs. SoftBank has pledged a total of?45 billion euro for three data centers?with 3.1 Gigawatts in the Hauts de France region?by the year 2031. The investment could rise to 75 billion Euros, according to Macron. Macron is trying to use 'France's fleet 57 nuclear reactors as leverage to promote the country as an artificial intelligence hub and data centre, both of which require large amounts of energy - preferably clean - to operate their computing power. He summarized the strategy with "plug baby plug". SoftBank CEO Masayoshi son said, "The AI data centre investment is EUR75billion, but if you include 'chips and systems', it will be near $750billion." He added that SoftBank wouldn't fund the full amount but would use project finance and work with "hyperscale customers."
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Norway's Equinor suggests Jarle Roth for new board chair
Jarle Roth, a member of the board at Equinor's Norwegian oil group, was voted by its nomination committee as the?new chairman after Jon Erik Reinhardsen announced his decision to step down. Reinhardsen has been the chairman of the board since nearly a decade. He has overseen a push to expand into low-carbon and renewable businesses. This expansion has slowed down in recent years due to rising costs, concerns about energy security and U.S. headwinds. Equinor issued a statement in which it said that Jon Erik Reinhardsen - who has been the chair of the Board since 2017 - would like to resign. Roth, 66 years old, is an independent 'advisor' who joined Equinor in December 2025. He was previously CEO of Norwegian firms Eksportkreditt Norge and Arendals Fossekompani. Equinor stated that his experience includes industrial investment management and restructuring, as well as export financing, energy transition, and global shipping services. In an email, a spokesperson stated that Roth's experience as a former CEO and board member of different companies will be beneficial to Equinor should he be elected on the 8th of June. The vote is being held ahead of a presentation to investors in New York on 16 June, when the management will be expected to present its updated strategy. Equinor, citing high costs and undeveloped markets, has scaled down its renewable ambitions over the last year. It scrapped a 2030 investment goal, cut planned installed capacity, and lowered?its goals for net carbon intensity. Reinhardsen urged for greater cooperation with Denmark's Orsted - the world's leading offshore wind developer - in which Equinor had taken a 10% stake by the end of 2024. Equinor also subscribed to the new share issue last year. The committee also proposed that Anne Drinkwater be re-elected as deputy chair along with board members Finn Bjorn Ruyter and Haakon Brüun-Hanssen. Mikael Karsson, Fernanda Lpes Larsen, and Dawn Summers. Essi Adomaitis and Nerijus Lehto, Anna Ringstrom, and Alexander Smith edited the report.
Lower CEZ profit caused by deferred tax, CFO says
Lowerthanexpected thirdquarter revenue at Czech electrical energy manufacturer CEZ was generally caused by greater deferred tax caused by the company's. choice to utilize an accelerated depreciation curve for its coal. properties, Chief Financial Officer Martin Novak said on Tuesday.
Novak told Reuters and Bloomberg that the deferred tax would. turn into favorable in the future, since it is currently based. on a 60% windfall tax rate on top of normal tax, which will. expire at end of 2025.
The faster velocity route preserves coal exit horizon of. 2030 but brings more of the diminished worth to the nearby. years, which matches the expected decrease of utilisation of the. coal plants towards the final year of operation, Novak said.
CEZ posted third-quarter changed net earnings of 3.7 billion. crowns ($ 155.23 million), versus 6.1 billion anticipated in a. Reuters poll, however raised its outlook.
Novak likewise stated CEZ expected to close the sale of its two. Polish coal plants, revealed on Tuesday, in the very first quarter. of 2025, with favorable impact on CEZ's bottom line.
(source: Reuters)