Following the conclusion of President Trump's China visit, the White House said the two leaders agreed that Iran must not control the Strait of Hormuz, citing a shared commitment to global security. Treasury Secretary Scott Bessent announced discussions on a joint Board of Investment, and Trump rounded off the summit by personally inviting President Xi to the White House later this year.

UK politics remains turbulent, with Prime Minister Keir Starmer's position under pressure. BofA Global Research warns that the risk of a leadership challenge has risen, though a delay looks increasingly likely. The bank notes that heightened uncertainty could tighten financial conditions and weigh on growth, adding that while policy continuity is possible in some scenarios, a soft-left successor could unsettle markets — though the threat of a negative market reaction makes an outright breach of fiscal rules far from certain.

On the central bank front, the FOMC Minutes are due Thursday. HSBC expects the April meeting record — likely Jerome Powell's last as chair, with Kevin Warsh set to take over in June — to show extensive discussion around the inflation outlook and risks. (LS – Continue Reading)

The US and Iran remained far apart Sunday on a deal to end weeks of war and reopen the crucial Strait of Hormuz, as a drone attack sparked a fire at a United Arab Emirates nuclear plant, spotlighting the risks of a fragile ceasefire.

President Donald Trump made clear his patience is wearing thin, posting on social media Sunday that “For Iran, the Clock is Ticking, and they better get moving, FAST, or there won’t be anything left of them. TIME IS OF THE ESSENCE!” (BBG – Continue Reading)

China’s economy stumbled in April with consumption, industrial output and investment growth missing expectations as the fallout from the Iran war dampened momentum in the world’s second-largest economy.

Retail sales, a gauge of consumption, grew 0.2% last month from a year ago, sharply missing economists’ forecast for a 2% rise and slowing from 1.7% in March, according to data released by the National Bureau of Statistics on Monday. That marked the weakest growth since December 2022.

China’s industrial output jumped 4.1% in April from a year earlier, decelerating from 5.7% growth in March, and undershooting expectations for a 5.9% rise in a Reuters poll. (CNBC – Continue Reading)