News

We will now wrap up the blog. Bye, folks!

Stocks rose on Monday, the first trading day of June, as Wall Street shook off increasing tensions in global trade.

The S&P 500 climbed 0.41% to close at 5,935.94, while the Nasdaq Composite advanced 0.67% and ended at 19,242.61. The Dow Jones Industrial Average added 35.41 points, or 0.08%, settling at 42,305.48.

China pushed back against US accusations that it had violated a temporary trade agreement. Instead, the country blamed Washington for failing to uphold the deal — a sign that negotiations between the world’s two largest economies are deteriorating.

May’s string of successful technology company debuts is reigniting optimism that the once-prolific enterprise software sector will soon resurface as a significant contributor to the US deal mix.

Robust initial public offerings last month from EToro Group Ltd., Hinge Health Inc. and MNTN Inc., as well as strong early demand for this week’s IPOs from Circle Internet Group Inc. and Omada Health Inc., point to a much improved market for first-time stock sales from companies spanning fintech, digital health, adtech and crypto.

Technology IPOs on US exchanges have raised $3.55 billion in the year to date, a slight increase on the same period last year, data compiled by Bloomberg.

A deal to provide Clearlake Capital Group-backed Quest Software Inc. with $350 million of fresh capital to help fund its artificial intelligence and growth plans is coming at the expense of some lenders who will be pushed down the repayment line.

Lenders who didn’t participate in the transaction, along with other junior creditors, will be ranked lower, according to people with knowledge of the matter, who asked not to be identified discussing a private matter. That may impact what they can recoup from their investment, they added.

A representative for Clearlake declined to comment, while messages left with the company were not returned.

Creditors that negotiated the deal, backed by 90% of existing first-lien lenders and 65% of second-lien holders, exchanged their holdings into a new first-lien second-out loan at 92 cents on the dollar, said some of the people.

Morgan Stanley is shopping a $5 billion debt package for Elon Musk’s artificial intelligence company, xAI Corp., according to a person familiar with the matter, the latest fundraising move by the billionaire who is also tapping markets for fresh equity across his business empire.

The debt package, launched on Monday, includes a term loan B, a fixed-rate term loan and senior secured notes, said the person, who was not authorised to share the information publicly. The proceeds will go toward general corporate purposes. Commitments are due on June 17. Representatives for xAI and Morgan Stanley did not immediately provide comments.

Bank of England rate-setter Catherine Mann said that officials need to consider the impact quantitative tightening may be having on long-dated bond yields and the economy when deciding interest-rate policy.

Mann said Monday that effects from the BOE’s run-off of its balance sheet of bonds cannot be easily offset by rate cuts, as they affect short and long-dated bond yields differently.

“Asset run-off and asset sales can influence monetary transmission by affecting different parts of the yield curve,” she said in the text of an address she is due to give at a conference hosted by the Federal Reserve Board of Governors in Washington. “If large enough, this needs to be incorporated into my future interest rate decisions.”

Long-time crypto advocate and Ethereum co-founder Joe Lubin says he was swayed into launching a firm to invest in the network’s native currency about six-months ago by the best-known advocate of stockpiling digital tokens.

“I was at a dinner with Michael Saylor, I did a little bit of research, I started talking to my colleagues about how cool it could be,” Lubin, the founder and chief executive officer of Ethereum software infrastructure provider Consensys, said in an interview. “Nobody in our company had done a deep dive on it. We saw, hey we don’t see anything overly dangerous in the strategy.”

For a fleeting moment on Monday morning, 20-year bonds were no longer offering the highest yields on the US Treasuries curve.

The tenor briefly traded below the longest maturities by the most in almost four years, sending 20-year yields less than 1 basis point below the 30-year. By noon in New York, the 20-year was up roughly 5 basis points to about 4.99%, almost on par with yields on the longest-maturities.

The earlier shift is a part of the broader steepening of the yield curve in recent months as traders demand higher return to hold long-term debt instead of shorter ones — making the 20-year more attractive than the longest-dated bonds.

The Trump administration has been including orders for Boeing Co. planes in trade discussions, and that’s helping to restore Bank of America Corp.’s confidence in the stock.

“Boeing aircraft have emerged as a favored trade mechanism in recent US trade negotiations, which we suspect will continue,” Ronald Epstein wrote in a research note. The analyst said deals — including a record order from Qatar Airways — as well as the end of China’s ban on airlines taking delivery of Boeing planes are creating a buying opportunity in shares.

Epstein raised the stock to a buy from neutral while boosting the 12-month price target to $260, the highest on Wall Street and about 25% higher than where the stock currently trades, from a target of $185.

UnitedHealth Group Inc. shareholders approved a pay package for Chief Executive Officer Stephen Hemsley that includes a $60 million stock option award.

The advisory vote is a sign of shareholders’ confidence in Hemsley, the chairman and returning CEO who helped shape UnitedHealth for decades. He reclaimed the top job last month as the health giant faces multiple crises that cut its market value by more than half since its November peak. In addition to the $60 million award that vests in three years, Hemsley will get a $1 million annual salary.

The company’s shares rose 1.8% at 11:15 a.m. on Monday in New York. They had fallen 40% this year through Friday’s close.

UnitedHealth Group Inc. shareholders approved a pay package for Chief Executive Officer Stephen Hemsley that includes a $60 million stock option award.

The advisory vote is a sign of shareholders’ confidence in Hemsley, the chairman and returning CEO who helped shape UnitedHealth for decades. He reclaimed the top job last month as the health giant faces multiple crises that cut its market value by more than half since its November peak. In addition to the $60 million award that vests in three years, Hemsley will get a $1 million annual salary.

The company’s shares rose 1.8% at 11:15 a.m. on Monday in New York. They had fallen 40% this year through Friday’s close.

US President Donald Trump and Chinese President Xi Jinping are likely to speak this week, according to a Trump administration official, as the world’s two largest economies remain locked in trade turmoil.

The official, who spoke on condition of anonymity, did not provide a date for a potential call nor did they guarantee one would occur. CNBC reported earlier on the administration’s expectation.

The Chinese Embassy in Washington did not immediately respond to a request for comment.

Washington and Beijing have traded accusations that each has violated the terms of last month’s broad agreement that saw both sides reduce tariffs from astronomical highs. The barbs have threatened to undo the fragile truce, which would provoke fresh worries for global markets.

US Federal Reserve Bank of Dallas President Lorie Logan said the US central bank can remain patient as it assesses risks to both inflation and unemployment.

“We’re seeing risks on both sides of our dual mandate that appear fairly balanced,” Logan said Monday during a banking conference hosted by the Dallas Fed. “That leaves us well positioned to wait for the data, to be patient and, if we get significant information that really changes the outlook on the balance of risks, we’ll be prepared to respond.”

Fed officials have said it could take months to gain clarity on the economic impacts of sweeping policy changes, particularly around trade. Investors widely expect policymakers to keep borrowing costs unchanged when they meet June 17-18 in Washington. Many economists have pushed their calls for rate cuts further into the second half of the year.

Oil surged after OPEC+ increased production less than some had feared and geopolitical concerns flared in Ukraine and Iran.

The Organization of the Petroleum Exporting Countries and its allies agreed on Saturday to add 411,000 barrels a day of supply in July, but some members objected, including Russia. With a handful of countries lobbying for a pause in July, banks are now split on how many more hikes will come in subsequent months.

Wall Street kicked off the week on the back foot, with stocks sliding after a weak manufacturing report, renewed trade tensions and geopolitical uncertainties. Treasuries pared losses, while the dollar headed toward its lowest since 2023. Oil rallied.

Coming off the best May for the S&P 500 in 35 years, the gauge retreated at the start of what’s historically one of its quietest months for gains. US factory activity contracted in May and a gauge of imports sank to a 16-year low as firms pulled back in the face of higher tariffs. Most major industries dropped, though energy producers and big tech climbed. US steel and aluminum shares surged on Donald Trump’s pledge to double levies on the metals.

French quantitative hedge fund Capital Fund Management SA opened an office in Toronto to attract wealthy investors in Canada.

Steve Shepherd, CFM’s head in the country, said he’s seeking to partner with a local firm in order to market Canada-domiciled versions of its existing strategies to retail investors. The firm wants those versions to be available next year.

CFM’s quantitative strategy is currently only available to institutional investors in Canada.

“We are already seeing significant interest in quantitative strategies that provide genuine de-correlation and diversification at a time when Canadian investors are rightfully questioning the efficacy of traditional 60/40 portfolios,” Shepherd said via email.

US factory activity contracted in May for a fourth consecutive month and a gauge of imports fell to a 16-year low as firms pulled back in the face of higher tariffs.

The Institute for Supply Management’s manufacturing index edged down 0.2 point last month to 48.5, according to data released Monday. Readings below 50 indicate contraction.

Two of the report’s trade-related indexes highlighted the widespread uncertainty caused by the uneven rollout and frequent changes in tariffs. The ISM’s import measure dropped 7.2 points, one of the largest monthly slides on record, to 39.9.

That marked a departure from earlier this year when some firms were importing more to get ahead of tariffs. The gauge of exports fell to the lowest level in five years, possibly a reflection of retaliatory tariffs from other nations on US producers.

Africa is set to be the largest beneficiary of the $200 billion that the Gates Foundation plans to give away over the next two decades, co-founder Bill Gates said.

“The majority of that funding will be spent on helping you address challenges here in Africa,” he told an African Union gathering in Addis Ababa, Ethiopia, on Monday, according to an emailed statement from his foundation.

The organisation said last month that it plans to give away the money over 20 years before shutting down in 2045. That implies Gates — currently the fifth-richest person in the world — plans to transfer many billions to his foundation as part of a goal to give away 99% of his wealth. He’s currently worth about $175 billion, according to the Bloomberg Billionaires Index.

The Dow Jones Industrial Average dipped Monday, the first trading day of June, as global trade tensions increased. The 30-stock average lost 181 points, or 0.4%. The S&P 500 also pulled back 0.2%, while the Nasdaq Composite gained 0.2%.

China pushed back against US accusations that it had violated a temporary trade agreement. Instead, the country blamed Washington for failing to uphold the deal — a sign that negotiations between the world’s two largest economies are deteriorating.

Oil surged after OPEC+ increased production less than some had feared and geopolitical concerns flared over Ukraine and Iran.

The Organization of the Petroleum Exporting Countries and its allies agreed on Saturday to add 411,000 barrels a day of supply in July, but there were objections from some members including Russia. With a handful of countries lobbying for a pause in July, banks are now split on how many more hikes will come in subsequent months.

Jamie Dimon said his retirement from the top post at JPMorgan Chase & Co. is “several years away,” but the decision is up the bank’s directors. “It’s up to God and the board,” the 69-year-old chief executive officer said in a taped interview aired Monday on Fox Business. “I love what I do.”

The question of when Dimon will retire and who might succeed him has hung over JPMorgan for years. Dimon used to joke that retirement was five years away, no matter when asked, but has recently stopped giving that answer. JPMorgan boosted Dimon’s pay to $39 million for 2024, a year in which the biggest US bank beat its own record for the highest annual profit in the history of American banking.

Atai Life Sciences NV agreed to buy full control of smaller UK rival Beckley Psytech Ltd. and raised $30 million in fresh equity, as it seeks to cement its position as one of the leading makers of psychedelic drugs for mental-health conditions.

The German company, which acquired about a 36% stake in Beckley last year, will purchase the remaining shares in an all-stock deal, it said in a statement Monday. The transaction values Oxford-based Beckley at about $390 million, it said.

Bristol-Myers Squibb Co. will pay BioNTech SE as much as $11.1 billion to license a next-generation cancer drug, as competition intensifies in an area of oncology that seeks to harness the immune system to attack tumors.

The German biotech will receive $1.5 billion upfront and $2 billion in instalments through 2028, the companies said Monday. BioNTech will also be eligible for as much as $7.6 billion in milestone payments, and the partners will split development and manufacturing costs and profits equally.

It’s the latest in a slew of deals as pharmaceutical companies battle for a share of a market currently led by Merck & Co.’s Keytruda, the world’s best-selling drug. Global sales of immuno-oncology treatments could reach $60 billion a year by 2027, according to Bloomberg Intelligence.

Delivery Hero SE agreed to pay a total of €329 million ($376 million) to settle a European Union probe into collusion with Glovo before it sealed a takeover of its Spanish rival.

The European Commission announced the penalty on Monday, saying the pair had previously plotted to carve up takeout delivery markets in Europe, shared sensitive commercial information on WhatsApp messages and also agreed to avoid poaching each other’s staff.

The watchdog said the illegal behaviour occurred between July 2018 and July 2022, when Delivery Hero gained full control of Glovo, and collusion between the then-separate firms stopped.

The world’s largest long-haul carrier plans to review services to Russia following Ukrainian drone attacks deep inside the country over the weekend.

Dubai-based Emirates has contended with disruptions since the start of the war in early 2022, President Tim Clark said Monday in a Bloomberg Television interview. The airline, which has provided Moscow with crucial links to the outside world, has no current plan to curtail flights but will monitor the developing situation, he said.

“This latest event was a little more worrying,” Clark said Monday at the International Air Transport Association’s annual gathering in New Delhi. “As things get a little bit more acute, if I can use that word, we’ll be reviewing all of this.”

Wall Street banks are reinforcing their calls that the dollar will weaken further, hit by interest-rate cuts, slowing economic growth and President Donald Trump’s trade and tax policies.

Morgan Stanley said the greenback will tumble to levels last seen during the Covid-19 pandemic by the middle of next year, while JPMorgan Chase & Co. remains bearish on the US currency. Goldman Sachs Group Inc. said Washington’s efforts to explore alternative revenue sources, should tariffs be impeded, may be even more negative for the dollar.

UK’S benchmark index FTSE 100 index was flat. UK’s manufacturing purchasing managers index rose to 46.4 in May compared with 45.4 in April. Despite an increase on month it remained below the reading of 50 that separates contraction from growth. According to the S&P Global, the weaker reading is on account of weaker demand from the US and Europe.

Germany’s DAX Performance index was down 0.6% and Italy’s FTSE MIB index was marginally down. France’s benchmark index CAC 40 declined for the fifth consecutive session and was marginally down. The country’s manufacturing purchasing managers’ index reading came in at 49.8 from 48.7 in April.

Most European indices were in the red on Monday after the US administration’s announced doubling tariffs on steel and aluminium products to 50% from 25% previously in place from Wednesday. This doubling of tariffs prompted European Commission’s Saturday comments that the bloc was prepared to retaliate against US President Donald Trump’s latest tariff tantrum. The Ursula von der Leyen-led organisation said it “strongly” regrets Trump’s steel tariff plan as it “undermines ongoing efforts to reach a negotiated solution,” Reuters reported.

Oil advanced after OPEC+ increased production less than some had feared and geopolitical concerns flared over Ukraine and Iran.

The Organization of the Petroleum Exporting Countries and its allies agreed on Saturday to add 411,000 barrels a day of supply in July, but there were objections from some members including Russia. With a handful of countries lobbying for a pause in July, banks are now split on how many more hikes will come in subsequent months.

Brent crude for August rose toward $65 a barrel after losing 2.2% last week.

Canadian Prime Minister Mark Carney is pushing to offset the economic pain caused by US President Donald Trump’s tariffs by compelling Canadian provinces to liberalize trade with one another.

Trump’s erratic policy announcements have sent Canadian companies scrambling to find new buyers, as economists see exports declining sharply in the middle of this year. And as the country eyes stronger ties with Europe and Asia, it’s first taking a hard look at its own inefficient trade barriers.

Carney will meet Monday with provincial and territorial premiers to accelerate efforts to lower trade barriers between them. Various studies see freer internal trade growing the size of the economy by between 0.5% and 8%, with the government typically touting the higher end of those estimates.NewsLive TVMarketPopular CategoriesCalculatorsTrending NowLet's Connect with CNBCTV 18Network 18 Group :©TV18 Broadcast Limited. All rights reserved.