Top Overnight News
US President Donald Trump left China on Friday with no major breakthroughs on trade or tangible help from Beijing to end the Iran war, despite two days spent heaping praise on his host, Xi Jinping. RTRS
An underappreciated surplus of crude oil, sloshing around storage tanks and aboard ships, cushioned the global economy when the Persian Gulf closed 2½ months ago. That excess supply is now dwindling at a record pace, with oil executives and analysts predicting that a harsh reckoning is set to upend the relative calm in energy markets. Acute shortages of key fuels and soaring prices could emerge within weeks if the Strait of Hormuz remains shut. WSJ
President Donald Trump said the US objective of recovering highly enriched uranium from Iran was “more for public relations than it is for anything else,” while reiterating his commitment to removing the nuclear material. BBG
Iran has allowed some Chinese vessels to pass through the Strait of Hormuz following diplomatic overtures from China’s government, semiofficial Iranian news agencies reported on Thursday. WSJ
The UAE will double its capacity to export crude oil bypassing the Strait of Hormuz by next year, as it seeks to reduce reliance on the shipping chokepoint. WSJ
UK borrowing costs hit their highest level since 2008 on Friday and the pound dipped as traders priced in a greater likelihood that Andy Burnham would challenge Sir Keir Starmer for the Labour leadership. The 10-year bond yield rose as much as 0.15 percentage points to 5.15 per cent, as the price of the debt fell, taking the UK’s benchmark borrowing costs above a post-2008 high set earlier this week. FT
Japan’s corporate goods prices surged in April by the most in 12 years, in another sign of how the war in Iran is boosting inflationary pressures and supporting the case for the Bank of Japan to raise interest rates. Japan’s Apr PPI surges +4.9% Y/Y in Apr, above the Street’s +3% forecast and up sharply from +2.9% in Mar. RTRS
Anthropic has agreed the terms of a $30bn fundraising that will value it at $900bn and is expected to close as soon as this month, capitalizing on its unprecedented growth this year to leapfrog its rival OpenAI’s valuation. FT
Fed Chair Jerome Powell’s term ends today. His colleague Michael Barr said shrinking the balance sheet is a threat to financial stability, while John Williams sees monetary policy in a “good place.”
BofA weekly flow data shows USD 20.5bln into stocks, USD 28.1bln into bonds, USD 5.8bln into cash, USD 2.0bln into gold and USD 1.3bln out of crypto. Bull & Bear Indicator rose to 7.6 (from 7.2).
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