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Venezuelan bonds rise after debt restructuring by government
Venezuela's bonds rose on Thursday, after the country began a restructuration exercise that is expected to be one of the largest and most complex sovereign debt restructuring exercises undertaken. Venezuelan government announced that it has appointed U.S. consulting firm Centerview Partners to rework what is estimated at hundreds of billions dollars in sovereign and state-owned debt. The dollar-denominated bonds of the country, which have been in default for years but still trade on financial markets, reached their highest level since more than a decade. Data from Tradeweb showed that the bonds of Petroleos de Venezuela, a state oil company, were at a decade high, at 40 to 50 cents. Jean-Charles 'Sambor is the head of EM Debt at TT International, London. He viewed it as a signal that a restructured debt was now a top priority for both Caracas, and the White House. He added that "the recovery rate will high" because we are dealing with a country whose oil production and debt sustainability has improved sharply. COMPREHENSIVE & ORDERLY Venezuela, the South American nation with the largest oil reserves in the world, and Petroleos de Venezuela (the state oil company) owe between $150 and $170 billion dollars of debt and interest. This burden must be reduced for the economy to remain viable. The government announced late Wednesday that it aimed for a "comprehensive" and "orderly" overhaul of the debt burdens, which would include both sovereign debt as well as that of PDVSA. Venezuela defaulted on its debts due to U.S. sanction pressure in 2017. However, its bonds have steadily increased since U.S. president Donald Trump returned the White House at the beginning of last year. Since the U.S. ousted President Maduro, in January, momentum has picked up and Washington's relations with acting Venezuelan president Delcy Rodrguez have become closer. In a client note, JPMorgan analyst Benjamin?Ramsey stated that the goal is to move "expeditiously" with financial advisers. "We remain MW (marketweight), Venezuela in our portfolio model, pending an?improved assessment of a framework for debt sustainability." Ramsey said that although the process was questioned, it is worth noting that it began before the International Monetary Fund provided its assessment of Venezuela's economic prospects or debt sustainability metrics.
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Markets focus on Trump-Xi Meeting
?Gold was largely stable?on Friday, as investors focused mainly on a meeting between U.S. president Donald Trump and his Chinese equivalent Xi Jinping. They also digested a rise in U.S. prices due to increased energy costs associated with the Iran War. As of 1112 GMT, spot gold was up 0.2% to $4,696.36 an ounce. U.S. Gold Futures for June Delivery fell 0.1% to $4,703.70. China's Xi said that the trade talks are?making good progress? at the beginning of a two day summit on Thursday, but that a disagreement over Taiwan might?damage relationships and even lead conflict? Gold is still hovering at $4,700 while markets digest the latest U.S. inflation figures. It is very evident that we are now in a phase of consolidation," said Swissquote analyst Carlo Alberto De Casa. Data on Wednesday revealed that U.S. Producer prices had posted their largest increase in four-years in April. This is the latest indication of an accelerating inflation. On Tuesday, data showed that the annual U.S. consumer inflation had posted its biggest gain in three year. According to CME Group’s FedWatch tool, traders have priced in a large amount of interest rate increases this year. This is due to the rising cost of energy. The?U.S. The Senate has approved Kevin Warsh to be the chair of the Federal reserve. Gold is considered to be a hedge against rising inflation. However, as interest rates rise, the metal becomes less attractive. HSBC has raised its forecasts for silver prices to $75 an ounce by '2026. The bank cited the weaker U.S. -dollar. However, the bank believes that there is only limited room 'to the upside as silver remains too overvalued. Silver spot fell by 1.3%, to $86.86 an ounce. Platinum fell by 1.3%, to $2,110.70. Palladium fell 2.2%, to $1,467.03. (Reporting and editing by Barbara Lewis in Bengaluru, Noel John)
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India's JSW Steel reports a two-fold increase in quarterly profits on the back of price recovery
India's JSW Steel announced a more than two-fold increase in its adjusted quarterly profit on Thursday. A rebound in steel prices, and a healthy demand, helped to offset the?impact of an?increase?in costs resulting from the Iran War. The demand for steel usually increases in the third quarter of the year as construction picks up. Analysts said that New Delhi's tariffs on certain steel products imported from China helped to raise?steel after two consecutive quarters of declines. The lowering of U.S.?tariffs was also a factor in the price increase. JSW Steel said that its sales volume increased by 6% in the third quarter due to a 10.4% increase in steel consumption. Mumbai's steelmaker reported a 14.2% increase in revenue?from operation to 511.8 billion rupees (5.34 billion dollars) for the three-month period ended March 31. This was higher than analysts' expectations of 496.6 billion rupees. The company's net profit was 163.7 billion rupees. This was boosted by an unforeseen gain from the sale of Bhushan Power and Steel's steel business. JSW Steel said that its operating EBITDA margins increased to 16.87%, from 14.23%. This was due to higher sales realization and higher coking coal costs, which were partially offset by the higher EBITDA margins. The Iran War and the Blockade of Strait of Hormuz has slashed the LNG?supplies. This has forced a widespread switch to coal, which in turn, has pushed up the price of coking coal. The total expenditures of JSW Steel increased by 8.9%, to 468.62 Billion Rupees. $1 = 95.7625 Indian Rupees (Reporting and editing by Eileen Soreng, Harikrishnan Nair).
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Bessent of US Treasury expects large Boeing orders during China visit
Scott Bessent, U.S. Treasury secretary, said on Thursday that he was expecting an announcement regarding large Chinese orders for Boeing aircraft when President Donald Trump visits Beijing. Washington wants to expand its exports to China. Bessent told?CNBC earlier in the day that they would be discussing other purchases including energy and agricultural products, as well non-strategic or non-sensitive areas where China could invest in America. Bessent, after meeting with Chinese counterparts, told CNBC’s “Squawk box” program that fireworks were one of the?goods?the U.S. wouldn't seek to reshore. Bessent stated that U.S. officials and Chinese officials had discussed the formation of a "Board of Trade" to govern trade between these two world-leading economies and a separate Board of Investment, which would be responsible for investments in non-sensitive areas. He said, "I don't know where the $1 trillion number came from." He said that the new investment board will review any Chinese plans in order to make sure they do not fall under jurisdiction of the Committee on foreign Investment?in the United States, which he chairs. Bessent explained that the goal is to ensure that these investments are not referred to CFIUS. This would allow them to be pre-screened to ensure that they don't fall into a sensitive or strategic area. Trump said to Chinese President Xi Jinping that he wants to open China up and rebalance?the trade relationship. Bessent stated that "we're focused on getting the balance right." "That's our goal, and it can be achieved in two ways: either we receive fewer imports out of China or we sell more products to China. We're working to balance this." Reporting by Andrea Shalal; editing by Doina chiacu and Kirsten Donovan.
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Bank of Spain warns of the potential for higher rents if mortgage lending is restricted
On Thursday, the Bank of Spain said that it is carefully calibrating any potential restrictions on mortgage lending to improve the resilience of both households and banks while not increasing rent prices. The 'authority' is developing a framework which would enable it to activate macroprudential limitations on lending standards when necessary to prevent risky loans. It estimated in its semi-annual report on financial stability that these measures will shift a part of the housing from ownership to rental, leading to likely lower house prices. It warned that the measures could have a knock-on effect on other variables, such as the rental price, and undermine the effectiveness of the plan. It said that any'such measures' should be calibrated carefully. Rents are rising at a rate well above inflation, with 10% increases in 2024, and 5% increases in 2025. This is in a housing market that has an estimated deficit of 700,000 houses. In 2025, home prices will rise at a rate of 9.7% per year, but they are still 14.7% lower than the peak in 2007, when Spain's bubble burst and forced the banks to be bailed out. Financial Stability Director Daniel Perez Cid said at a press briefing that the institution has not yet detected signs of a real estate bubble, such as excessive growth in credit. The stock of mortgage loans grew by a staggering 3.7 percent in the fourth quarter 2025, marking the fifth consecutive quarter of growth. However, it is still far below the levels of 2000-2008. In March, the number of new mortgage loans in Spain increased by 9.6% compared to last year. As of March, Spanish lenders offered the second lowest mortgage rates in the Eurozone. They averaged?2,75%. However, their?approaches differ. Santander's new mortgage lending increased by 44% in Spain in the first quarter compared to the previous year, while Bankinter decreased it by 40%. (Reporting and editing by Andrei Khalip, with Jesus Aguado)
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White House: China's Xi expressed an interest in purchasing US oil
During a leadership'summit with Donald Trump, President Xi Jinping stated his interest in buying more U.S. crude oil to reduce China’s dependence on Strait of Hormuz. The readout said that both leaders agreed the Strait of Hormuz should remain open in order to allow for the free flow of oil and Xi was against any militarization of the strait or tolls. The Chinese summaries published by the state media did not mention oil purchases. China's Foreign Ministry did not immediately respond to a comment request. Trump and Xi spent several hours together on Thursday, the first day of a two-day meeting that Chinese state media claimed would change the course of relations between the two countries. Chinese purchases of U.S. agricultural and energy products are being considered as part of a possible deal. However,?no specific details have yet been revealed. China hasn't imported U.S. crude oil since May 20, 2025 due to 20% tariffs that were imposed in the trade war. The removal of these duties is likely to be a pre-requisite for any large-scale purchase of U.S. crude oil. Even with the search of Hormuz free alternatives, a tariff of 20% still makes U.S. Light Sweet Crude commercially uncompetitive against other grades available, said?Emma Li an analyst at ship-tracking company Vortexa. Even at its height, the U.S. was never a major crude oil supplier to the world's largest importer. In 2020, China imported about 395,000 barrels of U.S. crude oil per day (bpd), which is just under 4%. By 2024, when Trump was no longer in office, this had dropped to 193,000 bpd and $6?billion. The Chairman of the state-owned oil giant CNPC has long-term agreements with?U.S. The chairman of state-owned oil major CNPC, which has long-term contracts with?U.S. It was reported earlier that the U.S. and China were expected to establish a "trade mechanism" for non-sensitive products this week. Each side could identify $30 billion in goods where they can reduce tariffs. Reporting by Trevor Hunnicutt in Beijing, Lewis Jackson and Sam Li; Editing by Sharon Singleton & Thomas Derpinghaus
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White House's few options for reducing gas prices as Iran War drags on
Three?people who are familiar with White House discussions said that Trump administration officials were scrambling to contain economic and political fallout from the war with Iran as the hopes of a quick solution faded. U.S. president Donald Trump backed the suspension of the federal gasoline tax this week, a move that would slash 18 cents per gallon from motor fuel prices currently averaging over $4.50 a galon across the country. The idea was once viewed as unnecessary by some White House staffers, but it is now becoming more urgent because officials are running out of options to demonstrate that they are combating rising fuel costs. One person said that there is a consensus in the White House about the need for "a visible consumer relief now" because prices have risen by 50% since the beginning of the war. In the past, gasoline prices of $4 per gallon have triggered public outrage and economic anxiety. This has been confirmed since the start of the war, with consumer sentiment dropping to a new record low and U.S. inflation rising to 3.8%, its highest level in almost three years. According to a?May /Ipsos survey, more than six out of ten Americans said their household finances had been affected by higher gas prices. Trump's approval rating for his economic policies was only 30%, down a few points since the start of the war. Trump is now under pressure from his fellow Republicans, who are worried that the economic impact of the war will cause a backlash among voters and could cost the party control of both the House of Representatives as well as the Senate during the November midterm elections. Two people who were familiar with the discussion say that administration officials are poring over data from the market to determine if the national average could rise to $5 per gallon. AAA data indicates that seven states have already exceeded this mark. A political adviser at the White House said: "They feel that that cost, gas, is their biggest vulnerability right now. Not overall economic conditions." "The hardest thing is also that we made (former president Joe) Biden's Achilles' heel the gas price, and now it's ours." Taylor Rogers, a White House spokesperson, said that Trump and his team of energy experts had prepared a plan for mitigating the effects. Rogers stated that "the ability to provide both the United States and its allies with reliable energy, affordable and secure, has been a long-term strategic goal of President Trump. His successful efforts to unlock American oil and natural gas have achieved this objective." "SMALL PRICE PAY" As Asian and European buyers scrambled for supplies, the administration's worries have grown. This has lowered U.S. stocks at a time when they are typically rising, alarming Wall Street analysts, who warn that the U.S. may face a shortage which could drive gasoline, jet fuel, and diesel prices higher this summer. Since Iran blocked access to the Strait of Hormuz - a waterway which normally transports one fifth of the world's supply of oil - energy prices have risen. The effects are felt by companies from McDonald's to airlines. Last week, the CEO of the fast food giant said that consumers with lower incomes were spending less. According to Transportation Department figures, U.S. airline fuel expenses in March rose 56% compared to February. This has squeezed carriers that already operate on thin margins. Spirit Airlines was one of them, the troubled low-cost carrier which shut down in early May. Trump called the price increases "a small price to pay" in order to overthrow Iran's regime, and to prevent Tehran from acquiring nuclear weapons. When asked Tuesday if the finances of Americans were motivating Trump to strike a deal he replied, "Not at all." Trump told reporters that "the only thing I care about when I talk about Iran is they cannot have a nuke weapon." "I do not think about Americans?financial situations. I don't care about anyone. I only think about one thing: we can't let Iran get a nuclear bomb. That's all." GAS TAX IDEAL GAINS TRACTION One person familiar with White House conversations said that the gas tax idea was considered as a fallback until late April. However, the idea gained momentum in the last week after the Iranian ceasefire track failed and officials decided they needed to make a policy shift Americans could feel. Trump's suspension proposal would need congressional approval. Some Republican legislators have expressed interest in the idea. However, party leaders are yet to commit. In April, the administration waived shipping rules and exempted certain Russian oil from sanctions to allow for additional fuel transportation. The Energy Department announced on Monday that it will loan another 53.3 millions barrels of crude oil from its national security stockpile in order to calm the market. According to an Ipsos/?/Ipsos survey conducted between April 24 and 27, only one in four Americans think the war against Iran was worth it. The other 53% believe it wasn't worth it, while the remainder are unsure. One out of five Republicans believes the war was not worth it. Amy Koch, Republican strategist and advisor to state and federal candidates said that the administration had a limited time frame to end the conflict, and ease the pressure on fuel prices, before Memorial Day, which is the unofficial beginning of the summer driving season. Koch stated that "the White House is on the clock."
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Zinc reaches near 4-year high amid supply concerns; copper falls
The zinc price surged on Thursday to its highest level in nearly four years after another incident at a metal smelter increased supply concerns. Copper was poised to break an eight-day streak of gains, but held above $14,000. As of 0930 GMT, the benchmark three-month zinc at London Metal Exchange had risen 2.3% to $3,610 per metric tonne. The metal used for galvanizing steel reached $3,616.50, its highest level since August 2022. Nexa Resources announced on Wednesday that operations at the 344,400-ton Cajamarquilla Zinc Smelter, which is the largest zinc smelter of Latin America and has the highest production rate in Latin America, have been temporarily suspended following a fire, which damaged infrastructure. The fire occurred a day after Glencore-owned Kazzinc announced that its zinc and led plants in eastern Kazakhstan would be operating at reduced capacity after an explosion last week. The International Lead and Zn Study Group had predicted that there would be a deficit of 19,000 tons in the refined Zinc market this year, even before these incidents. Zinc Stocks On the LME, there are 110,875 tonnes, which is less than three full days of global consumption. The cash LME Zinc contract traded at a discount of $19 per ton to the forward three-month contract , indicating no immediate ?tightness. The copper price fell by 0.7%, to $14,045.50 per ton. It had reached $14,196.50 a ton on Wednesday. This was the highest level since January 29, when it hit its record high of $14,527.50. The recent rise in copper prices has left traders vulnerable to profit-taking. This is especially true after the higher-than expected U.S. inflation figures have strengthened the dollar, and weakened expectations of near-term Federal Reserve rates cuts. Investors are watching the outcome of the meeting between Chinese president Xi Jinping, and his U.S. counterpart Donald Trump that began on Thursday. Aluminium slipped 0.1% to $3,655.50. This is near the high of four years that was reached on Wednesday. Lead was unchanged at $2,008, while nickel fell 1.2% to $18,945. Tin dropped 0.6% to $57,680. (Reporting and additional reporting by Dylan Duan, Lewis Jackson and Mrigank Dhaniwala; editing by Mrigank Dahaniwala and Eileen Soreng)
MORNING BID AMERICAS - 'G2' Choreography
What's important in U.S. and Global Markets Today By Mike Dolan, Editor at Large, Finance and Markets
The two-hour meeting between Donald Trump and Xi Jinping, China's president, in 'Beijing' on Thursday seemed to be full of pleasant words and a few contentious issues were avoided. However, Xi did say that trade talks are progressing and warned Taiwan.
Investors have little to latch onto on the first day of "the summit". The market is left with only two major themes: oil-fueled inflation and the AI explosion.
Below, I'll go into more detail. Check out my most recent column about why the Fed might have to raise rates. Listen to the most recent episode of Morning Bid, the daily podcast. Subscribe to the Morning Bid daily podcast and hear journalists discussing the latest news in finance and markets seven days a weeks.
"G2" CHOREOGRAPHY In terms of inflation, the U.S. Producer prices rose by the most in four years in April, and core consumer prices also increased above forecasts in the same month.
Fed models predict that annual headline inflation will rise above 4% by May. Bond markets are restless, as yields across the curve increase, as futures price in a possible Fed interest rate hike over the next year. Susan Collins, Boston Fed's chief executive officer, said that the central bank couldn't ignore supply shocks because inflation has been above target for five years and is now rising. Kevin Warsh will be taking over as Fed?Chair tomorrow after the Senate confirmed his appointment on Wednesday. The stock market's enthusiasm has not been dampened by rising borrowing rates. Wall Street indexes have risen on Wednesday and the S&P 500 as well as Nasdaq reached new closing highs. Stock futures were higher before the opening bell while European shares rose following the open. In Asia, Japan’s Nikkei reached another record while South Korea’s SK Hynix is on the verge of becoming the second trillion-dollar company in the country after Samsung. Asia's chip titans were once again in the spotlight as Taiwan's TSMC increased its forecast for chip demand by 50%, to $1.5 trillion. Meanwhile, Britain's political unrest eased as Keir starmer refused to step down. A leadership challenge may still be in the works, as health minister Wes Streeting is reportedly planning to resign, and launch a bid against Starmer.
Chart of the Day
In just six weeks the Philadelphia SE?semiconductor Index has increased by 64%, compared with a gain of nearly 17% for the S&P 500. Micron Technology, Advanced Micro Devices and Intel all saw their shares more than double during this time. Analysts estimate gains in semis, memory stocks and other semiconductors accounted for 70%?of the $5.1 trillion in market capitalization that the S&P 500 will add in 2026.
Watch today's events
* U.S. import prices for April (8:30 am EDT), weekly claims of unemployment (8:30 am EDT), and retail sales (8.30am EDT).
* Kansas Fed Jeffrey Schmid speaks, as does?Cleveland Fed Beth Hammack. New York Fed John Williams also speaks
* Trump-Xi summit continues
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(source: Reuters)