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Kremlin: Top officials offer Putin ideas to revive economy after recession
The Kremlin announced on Thursday that President Vladimir Putin had scolded the top Russian economic officials for a decline in the economy during the first two month of the year. Since 2023 the Russian war economy has been outperforming the G7 average, even though it slowed last year. Putin announced on Wednesday that Russia's economy contracted between January and February. Putin said the economic trajectory was below expectations at the beginning of a Kremlin meeting with Russia's top economic officials on Wednesday. He asked the officials to provide him with detailed options for how to rectify the situation. Dmitry Peskov, Kremlin spokesperson, said that the closed part of Wednesday's meetings lasted several hours behind closed door and there was a?free exchange of ideas. Peskov said to reporters that "the members of?the?government's economic block have many proposals for activating the economy and giving?it more momentum." He declined to give any details about the plans for the economy which has benefited from the soaring oil and gas prices triggered by U.S. and Israeli attacks on Iran. Reporting by Dmitry Antonov; Writing by Guy Faulconbridge, Editing by Andrew Osborn
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EU approves German, Bulgarian and Slovenian relief plans on industrial power bills
The European Commission approved on Thursday?state-aid schemes in Germany, Bulgaria and Slovenia to provide a?temporary?price?relief? for energy-intensive businesses as manufacturers are being hit by an increase in energy costs. In a press release, the commission said that the budgets for the schemes were 3.8 billion euro ($4.5 billion) in Germany, 334 millions?in Bulgaria, and 90 million in Slovenia. The EU stated that the move, which came after the Iran War inflated energy prices, was primarily linked to "efforts to reduce greenhouse gas emissions" and "state support would be contingent upon companies spending a substantial share of the aid toward this goal." This clearance was possible because of the looser competition rules that were announced in June 2012, whereby businesses would be able to more easily obtain national state assistance for reducing carbon emissions. The rules announced at the time included heavy industries in the category of those eligible to receive temporary price reductions from member states. Germany announced a number of temporary energy cost relief measures aimed at motorists and the haulage sector after the 'Iran war' caused major disruption to global energy supplies.
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Report: US ESG shareholder resolutions plummet in the face of Republican pressure
A new study shows that shareholders have submitted 184 proposals to promote environmental, social, and governance themes in U.S. firms so far this proxy season. This is about half of what they did last year, as Republicans work 'to shift corporate control from investors to managers. According to Michael Passoff, CEO and co-author of the report, a proxy voting service for sustainable investors, 355 proposals were filed at a similar point last year during spring proxy season. These proposals encourage companies to report more about their carbon emissions and workforce diversity. Although most proposals are not binding, they may lead to?significant corporate changes. Passoff said that the decrease in filings was partly due to a willingness by?company executives to negotiate behind closed doors, to avoid public controversy. He also cited Washington's new rules that make it more difficult for activists to win corporate battles. The regulators appointed by U.S. president Donald Trump limited activists' access to a securities database, and gave companies greater freedom to skip voting. Passoff, in a phone interview, said that shareholders felt they wouldn't get a fair shake in filing resolutions. They thought it would be better to focus on the company dialogues instead. He said that with major shareholder meetings?underway this year, hot 'topics' include rules for building data centers for artificial intelligence, and pressing companies to disclose more lobbying. In recent years, support for environmental and social measures has declined. While big investors claim that companies have made major reforms, critics who are focused on ESG say executives have abandoned their diversity and climate goals. Amy Galland, of Empower Venture Partners, and Ross Kerber (reporting) will co-author the report. (Reporting and editing by David Gaffen; Ross Kerber is the reporter)
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The US will punish insider trading and fraud, the derivatives regulator told Congress
Washington's top regulator of derivatives is expected to assure lawmakers on Thursday that the United States will punish fraudulent activity as concerns?mount on Capitol Hill about oil, stock, and prediction market participants trading illicitly based on insider information from a?White House. According to prepared remarks viewed by, Michael Selig's first congressional testimony comes a day following media reports that the U.S. Commodity Futures Trading Commission is investigating a number of oil futures transactions executed just before President Donald Trump made major policy changes. These remarks also serve as a "nod" to the sudden attention that the relatively low-profile agency, which has only one member, Selig?rather than the usual five, now finds itself in. Selig stated in a statement that anyone engaging in fraud, manipulation, or insider trading on any of our markets will be found and will face the full 'force' of the law. Selig is due to appear before the House Agriculture Committee (which oversees CFTC) at 10 a.m. EST. (1400 GMT). At least four times, legal experts stated that it appeared as if investors were aware of the major Trump decisions regarding tariffs, Venezuela or Iran. These decisions led to significant changes in the market. These trades are largely within the CFTC?jurisdiction. David Miller, the new enforcement director of the CFTC, stated last month that the agency was focusing on policing market manipulation and insider trading. Selig will also be asked by members of the House Agriculture Committee questions about his agency’s?assertion that it has sole jurisdiction? over prediction markets. Critics have compared this to state-regulated gaming, and the work the Securities and Exchange Commission is doing with its agencies in adopting a 'new era of digital assets,' according to the agencies. The CFTC was created in 1974 and has a budget of less that $400 million. It is responsible for policing a complex and expanding?set? of futures,'swaps' and event contracts. Selig, the lone member of this commission, is normally composed of five members. Two are from the minor party.
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Trump attempts economic reset while Republicans worry about high gas prices
The U.S. president Donald Trump is going to try and brush off concerns over the economy and the sagging prospects of his Republican Party this week during a campaign style swing through battleground states Nevada and Arizona, while the war with Iran drives gasoline prices higher. Trump will use his Thursday stop in Las Vegas?to tout?his immigration and tax bill, which includes campaign promises tailored for hourly workers and hospitality workers. The soaring prices across the country -- from groceries to gas, to housing and insurance -- has shaken up the U.S. economic system. And with it Trump's ability to rally conservatives for November's midterm election. Five Republican strategists said they are concerned that the White House is losing control over the affordability debate. This could neutralize the political boost from the tax law and the resilient economy, which has been able to overcome Trump's previous military interventions and trade war. David Damore is a professor of political science at the University of Nevada in Las Vegas. He said that "the cost of living will trump everything -- no pun intended-- over any small changes in tax returns." Trump's advisers are more optimistic. They predict that Trump will reach a deal soon with Iran in order to reopen the crucial?Strait of Hormuz, and that economic anxiety related to this will subside before the midterm elections. White House spokesperson Kush Desai stated that Trump was always clear about the economic impact the Iran War would have in the short term. The tax benefits he delivered "reflect the Administration's continued focus on delivering our affordability agenda here at home." Higher fuel prices will lead to a sticky inflation of all consumer goods and services. This?presents pronounced risk for Republicans who face an increasing hostile reelection maps in the House of Representatives, and Senate. TRICKY MIDTERM MAPS According to Amy Walter of the Cook Political Report, an expert in election forecasting, Democrats are favored for the House majority, but key Senate races are moving in favor of Republicans in North Carolina and Georgia. Even the conservative state Nebraska is moving in their direction. Trump's approval ratings in late-March/Ipsos surveys fell to 36%. This marks a low in his second term. Nevada and Arizona have also?competitive Senate or House races. Trump will 'participate' in an event in Phoenix hosted by the conservative group Turning Point USA on Friday. Republicans hoped that provisions of the One Big Beautiful Bill Act, which included no tax on tips or overtime pay and was enacted by Trump and Republicans last year to a $4.1 trillion agenda, would resonate with voters looking for economic relief. "I don't think it will happen," said a Republican strategist who consults on congressional races. They spoke anonymously because they were discussing sensitive issues. In recent weeks, the challenge Republicans face has been exacerbated by Trump's focus in Iran and his public disagreement with Pope Leo. Trump announced last week that the White House would be sending senior adviser James Blair to help with midterm campaigning. This is a sign that he was growing concerned about the party's prospects. WEST COAST SLING Trump will host on Thursday a roundtable focused on his policy of eliminating federal taxes on tipping, a measure aimed at service employees in a city dominated by hospitality jobs. Supporters claim it will increase take-home pay of restaurant, hotel, and casino workers that rely heavily upon gratuities. Trump's tax law for 2025 includes a provision that allows workers who qualify to deduct tip income up to $25,000. However, payroll taxes will still apply. The benefit is phased out as higher-earners earn more. Analysts estimate that about 4 million Americans are employed in 'tipped jobs. They estimate an average benefit of $1,400 per year for those who qualify. Karoline Leavitt, White House spokesperson, said that more than 53 million taxpayers claimed at least one tax cut signature by Trump this filing season. She said the average tax refund was over $3,400. Gas prices are still a concern. Trump has sent mixed messages about how long the higher fuel costs will last. At times, he suggested that Americans might have to suffer for a prolonged period of time due to global supply disruptions. Other times, he said prices would fall dramatically once the war ends. People familiar with the discussions in and around the White House say that the administration has limited options for lowering energy prices, beyond a complicated diplomatic effort linked to the Strait of Hormuz. Officials released oil from the Strategic Petroleum Reserve and adjusted shipping rules. They also eased sanctions against Russian and Iranian oil. Prices remain high, with benchmarks globally exceeding $90 per barrel. One oil executive involved in the discussions stated, "All that's left are bad options. We have asked the White House to not pursue them." Trump has tried to calm expectations by portraying midterm elections losses as a normal occurrence for the party currently in power while insisting that his administration can reverse this trend. He told Fox Business Network’s "Mornings with Maria", a program that aired on Wednesday, "Even if you have a fantastic president, midterm elections tend to be lost." "So, we're trying to turn it around." There's no good reason for the Republicans to lose. (Reporting by Jarrett Renshaw and Jacob Bogage; additional reporting by Humeyra Pamuk, Editing by Colleen Jensen, Rod Nickel).
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Stocks return to record highs on Middle East peace hopes
The world stock market rose for the 10th consecutive day, hitting new records on Thursday. This was after a six-week turnaround from the massive selloffs caused by Israel and the United States attacking?Iran. The optimism about a possible deal to end the conflict was boosted by both Washington and Tehran's comments. With oil at $95 per barrel, MSCI’s main world stock index rose 0.25%. The U.S. S&P500 rose above 7,000 points Wednesday after global bank earnings reassured investors. This capped an 11 percent increase for MSCI world. Manpreet Gil, Standard Chartered Chief Investment Officer, Africa, Middle East, and Europe, said that the U.S. Tech stocks and the easing oil prices were the main drivers of the rebound. The European stock market is not back at its pre-war levels, but it has also gained 0.2%. As traders lowered their bets on higher interest rates, the region's government loan costs also fell. Bonds are still well below pre-conflict highs. Gill said that if the spike in energy costs fades and the impact of inflation is a temporary one, the leading central banks will likely try to "look past" this move. He said that everyone would be "quite cautious" about any possible second-round effects. OIL ON BOIL Brent crude was hovering just above $95 per barrel on the oil market after a Tehran-briefed source said that Iran could allow ships to freely sail through the Omani Side of the Strait of Hormuz, without any risk of attack, as part of its proposals in "negotiations" with the United States. After eight days of declining values, the U.S. Dollar Index, which measures the strength of the greenback against a basket six currencies, gained 0.1%. In addition to war-watching, U.S. president Donald Trump reignited the spat with Fed chair Jerome Powell by threatening him to be fired from his seat as a member of the Board of Governors of the U.S. Central Bank if he does not vacate his seat when his term ends on May 15th. The dollar's movement also caused the euro to lose traction. It had been within touching distance from its highest level, $1.182325, since the beginning of the war. The yen strengthened to 158.71 yen after Japan's Finance Minister said that Tokyo and the U.S. agreed?to increase communication regarding exchange rates, following her Wednesday meeting with U.S. Treasury Sec. Scott Bessent. Khoon Goh is the Asia Research Head at ANZ. He said that markets are looking beyond the conflict to pricing and a possible settlement. As markets price out the war premium, the dollar could come under more pressure and resume the downward trend that has been established for the past year. China's yuan traded at a near three-year high of 6.8152 to the dollar on offshore markets, and Chinese stocks rose more than 1% following data that exceeded expectations showing the economy grew by 5.0% in the 1st quarter. Strong exports were offset by still-sluggish consumption. AUSSIE DOLLAR AND GOLD GAIN MSCI's broadest measure of Asia-Pacific shares rose by 1.2%, while Japan's Nikkei225 surged 2.4% for a new record. Taiwan and Korea were not far behind, as Taiwan Semiconductor -Manufacturing Company (TSMC), a key player in the AI sector, reported a 58% increase in quarterly profits. Goldman Sachs analysts wrote in a report that they "remain constructive" about emerging market stocks, as the "underlying profit growth will likely be strong". Gold fell 0.8%, to $4,825.79, while bitcoin rose?0.3%, at $75,084.56, and ether dropped 0.2%, at $2,359.89. The Aussie Dollar also rose by 0.3% to a four-year-high of $0.71890. Data showed that Australian employment increased broadly in line with the expectations in March, as firms hired more workers full-time. However, the unemployment rate remained at 4.3%. Capital Economics analysts wrote in a report that the latest data would confirm the RBA's assessment, which is that the upside risks of inflation are greater than the downside risks of the labour market. (Reporting and editing by Hugh Lawson; Reporting by Marc Jones)
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Gold rises on the back of a weaker dollar as US-Iran hopes for peace deal rise
Gold prices rose Thursday due to a weaker dollar and lower Treasury yields. Investors were 'optimistic' about a possible end to the Middle East conflict, which had stoked inflation fears. By 0723 GMT, spot gold had risen 0.7% to $4821.96 an ounce. U.S. Gold Futures for June Delivery gained 0.4%, to $4843.40. The U.S. dollar hovered around its lowest level in six weeks, making greenback-denominated ?commodities, including bullion, more affordable for holders of other currencies. The benchmark 10-year U.S. Treasury rate fell by 0.1%, as?hopes for a U.S. Iran peace deal reduced bets on higher U.S. rates over the long term. Kelvin Wong is a senior analyst at OANDA. He said that the primary driver for gold is?the optimism regarding a U.S.Iran ceasefire, which is pushing down global longer-term bond rates. This has created a lower 'opportunity costs of holding gold and Silver. If we begin to see a break over $4,900 then further upside potential cannot be ruled in towards the next resistance zone at the psychological level $5,000. The Trump administration and a Pakistani mediator in Tehran have been expressing optimism that a deal could be reached to open the Strait of Hormuz. A senior Israeli official said that Israel's cabinet had met on Wednesday, six weeks after its war against Iran-backed Hezbollah, to discuss the possibility of a ceasefire in Lebanon. The spot gold price has fallen by more than 8% since the Iran War began late in February, amid fears that high energy prices will feed inflation and keep global interest rates up. Gold is seen as a hedge against inflation but higher interest rates are affecting its demand. In the U.S. traders see a 29 percent chance of a 25 basis-point cut in interest rates this year. There were two expected reductions in interest rates for this year before the war. Silver spot rose 1.4%, to $80.12 an ounce. Platinum gained 1%, to $2,130.25. Palladium increased 0.9%, to $1,587.25. (Reporting by Noel John in Bengaluru; Editing by Subhranshu Sahu and Harikrishnan Nair)
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Aluminum demand rises on hopes of US-Iran agreement
Aluminum rallied Thursday on expectations of an acute supply shortage due to the Middle East Conflict, as growing hope for a U.S. Iran peace deal improves demand outlook. Benchmark?three month aluminium at the London Metal Exchange rose 1.27% by 0705 GMT to $3,667.5 a metric ton, its highest since March 24, 2020. The Shanghai Futures Exchange's most traded aluminium contract closed the daytime trading up 2.89% to 25,635 Yuan ($3,760.62), its highest since March 9. The optimism grew as a key Pakistani facilitator in Tehran and Trump's administration talked up hopes for a pact that would open the Strait of Hormuz, a crucial waterway in the Middle East. According to a research report dated April 13, JP Morgan predicted a 1.9 million tonne primary aluminium shortage in 2026. This is the biggest deficit since 2000. The Iran war has affected the supply of aluminium in the Gulf, which accounted for 9% before the war. Some local aluminium smelters either reduced output or sustained damage from the attacks. Analysts at JP Morgan expect the price of aluminium to reach $4,000 within the next few months. Falling inventories were one of the factors that supported aluminium prices and tightened supply. Stocks of aluminium in LME-approved storage facilities Since late February, the price of oil has dropped by about 15%. Other than that, there are?aluminium stockpiles at three major Japanese port cities In March, the number of people in Canada who travelled abroad fell by 7.4% compared to the previous month. Analysts said that the hopes of?growing overseas orders for Chinese aluminum and a 'drawdown in Chinese stock also fueled price rise. SHFE copper increased by 0.39%. Nickel?added 0.52 %, lead increased 0.69%. Zinc?advanced 0.86 %, while Tin was not much changed. The price of copper increased by 0.76%. Nickel rose 1.31%. Lead edged up by 0.08%. Tin gained 1.2%. Zinc also climbed 0.79%. $1 = 6.8167 Chinese Yuan (Reporting and editing by Amy Lv, Tony Munroe)
French Finance Ministry raises inflation estimate, trims growth forecast
The French Finance Ministry has lowered its 2026 growth forecast and raised its inflation estimate to reflect the impact of the Middle East conflict.
According to the ministry, the euro zone's 2nd largest economy will now grow by 0.9% in 2014 instead of the 1.0% previously expected. Inflation is expected to average 1.9%, instead of 1.3%, due to the higher energy import prices.
The Finance Minister Roland Lescure stated that the current crisis will have "a modest impact" on the growth, citing momentum carried over from last years, and inflationary effects will be "limited" due to France's heavy dependence on nuclear energy.
According to the ministry, its projections assume that oil prices will stay?at $100 per barrel until May's end before gradually decreasing.
The government has reiterated that despite a less favourable economic outlook it is "committed" to cutting the budget deficit of the public sector down to 3% by 2029 from 5.1% as recently as '2025.
The ministry stated that a rise in global bond rates since the conflict began 'has increased borrowing costs. This has added an estimated 4 billion euros this year to government financing expenses. (Reporting and editing by William Maclean)
(source: Reuters)