1. U.S Markets Move Up; Increase in Inflation Reported

U.S. markets hit fresh all-time highs even with inflation data showing negative signs. Consumer Price Inflation came out at 0.6% higher than April, but better than the 0.8% jump in March to April. Core CPI inflation is at a 28-year high of 3.8% in May, from 3.0%. 

U.S weekly jobless claims came in at 3.76 lakh, at nearly a 15-month low level.

Excluding the volatile food and energy components, the core CPI rose by a larger-than-expected 0.7%, according to Labor Department data Thursday.

Stoxx Europe is up 0.064%

Dow Jones is up 0.35%

NASDAQ is up 0.48%

2. Chip Shortage Issue May Get Solved In Q3: Volkswagen

Automaker Volkswagen expects the semiconductor supply issue which had affected the auto sector very badly, may ease in the third quarter. Murat Aksel, the head of procurement on the Volkswagen board said the company failed to build one lakh cars due to the chip shortage.

3. CMC Reports 2X Annual Profits

CMC Markets, a London-listed online trading platform reported a stunning profit before tax at Rs 2307 crores for the year ended March compared to a profit of Rs 1016 crores a year ago. Net operating income raised by 63%.

4. Inflation Is Under Control: China Central Bank Governor

China,s Central Bank Governor said inflation is under control in the country and there will be no change to the current monetary policy. He said that China’s interest rates are relatively low among developing and emerging economies

5. Biden will donate 50 crore doses of vaccine

US President Joe Biden is planning to buy and donate fifty crore doses of vaccines. U.S. drugmaker Pfizer and its German partner BioNTech will be providing the vaccine and will be donated to 90 plus countries within 2 years. This is a good start and let us hope that other major economies will be a part of this

6. Altice Group Buys 12.1% Stake In BT Group 

Billionaire Patrick Drahi owned Altice Group has bought a 12.1% stake in Britain’s telecommunication giant BT Group. The deal is worth Rs 22,656 crores and put Altice ahead of Deutsche Telekom, which owned 12.06% of BT. Share of Bt ht a 17 month high after the news.

7. G-7 Countries Aim Quick Shift to Electric Cars

G7 countries are discussing big plans to shift the balance of car buying away from gasoline to greener vehicles by the end of the decade, as part of a package of measures to combat climate change.

Under one proposal contained in a document seen by Bloomberg, G-7 governments would “strive” to ensure that the majority of all new passenger car sales are not petrol or diesel-powered “by 2030 or sooner.” Yes, the language is very diplomatic and does not give a clear and specific direction. The countries are also divided on how specific these measures should be.

8. World’s food import bill to reach record highs as prices increase

The world’s expense for food import is expected to reach all-time highs this year, with price of common food increasing threatening worldwide inflation.

The cost of importing food is to rise 12% to $1.72 trillion(~Rs 122 lakh crore) according to a report by United Nations’ Food & Agriculture Organization. This is being led by increase in prices of grains, vegetable oils and more.

Developing countries are set to be worst affected, with a 21% jump in their costs, with just 6% increase for the richest ones.

9. China prepares laws to hit back Against U.S. Sanctions

Chinese lawmakers have approved new laws to work against any U.S. sanctions on the country.

The full text of the final legislation wasn’t immediately released. The country is trying to find new ways to fire back at the U.S. and other Western countries amid tensions over a range of issues including investigations into the origins of Covid-19. 

10. China Warns Commodity Traders of Risks

China’s banking regulator has warned retail investors to avoid trading in financial derivatives, in a try to stop inflation in commodity prices.

Retail investors who speculate on gold or metal futures are set to face losses like those saying property prices will never fall, chairman of the China Banking and Insurance Regulatory Commission said.