French President Emmanuel Macron at a luncheon with Vietnam’s Communist Party General Secretary To Lam at the Temple of Literature in Hanoi, Vietnam, on May 26, 2025.
Chalinee Thirasupa | Afp | Getty Images
French President Emmanuel Macron visiting Vietnam and Swedish automaker Volvo Cars laying off employees might not appear to have much in common.
But they are, on some level, strategic maneuvers in response to U.S. President Donald Trump’s deployment of 50% tariffs on the European Union, which he later delayed.
Macron sealed a deal with Vietnam for the Asian country to buy 20 jets from European planemaker Airbus, building on an earlier agreement for a similar quantity.
And Volvo Cars’ layoffs reflected growing pressure on the company to cut costs. The Swedish automaker has already pulled a China-made car completely out of the U.S. markets because of Trump’s tariffs on Beijing. The company, which is owned by China’s Geely Holding, also withdrew its financial guidance for both 2025 and 2026, citing tariff pressure on the automotive sector.
Hence, while there may be sighs of relief in Brussels for now, Trump’s tariff bluster will continue to roil the global economy and investor confidence.
What you need to know today
Hong-Kong listed bubble tea shares pop
U.S. futures jumped Monday night stateside on Trump’s delay of 50% tariffs on the European Union. Markets were closed Monday for the Memorial Day holiday. Asia-Pacific markets mostly traded down Tuesday. Hong Kong’s Hang Seng Index dipped 0.05% at 2 p.m. Singapore time. Hong Kong-listed shares of Chinese bubble tea companies popped, with Mixue jumped 8%, Guming rose 6.3% and Nayuki climbed 5.5%.
Rocky path ahead despite EU tariff delay
Investors cheered Trump’s delay of tariffs on the EU, driving U.S. futures and European markets higher. However, analysts are warning not to let optimism run unchecked. Berenberg Chief Economist Holger Schmieding told CNBC that even if a deal was struck to reduce import duties from the EU to 20% or 30%, “the EU would have no choice” but to impose “significant countermeasures” against the United States.
Consecutive growth for China’s industrial profits
China’s industrial profits rose 3% in April, official data showed Tuesday, accelerating from 2.6% growth in March. That marks the second straight month that profits at major industrial firms have increased. The boost in industrial firms’ profits was largely owed to Beijing’s efforts at supporting the private sector, offsetting some of negative impacts from U.S. tariffs on the country.
Vietnam agrees to buy 20 Airbus jets
During French President Emmanuel Macron’s state visit to Vietnam — the first by a French president in almost 10 years — the two countries signed an agreement to buy 20 Airbus A330neo planes, vaccines from French pharmaceutical company Sanofi and cooperate on nuclear energy, reported Reuters, citing a list of documents it had seen.
Volvo announces layoffs
Sweden-based automaker Volvo Cars on Monday said it would cut around 3,000 jobs, mostly office-based positions in Sweden, as part of a major cost-cutting drive. The move comes after the company, which is owned by China’s Geely Holding, announced an 18 billion Swedish kronor ($1.89 billion) cost and cash action plan late last month.
[PRO] Buffett wisdom from shareholder meeting
Warren Buffett stepping down from his role as CEO of Berkshire Hathaway was the biggest news from the firm’s annual meeting this year. CNBC PRO’s Yun Li points out other nuggets of wisdom from the Oracle of Omaha investors might have missed from the meeting, ranging from Buffett’s opinion on real estate to his investments in Japanese trading companies.
And finally…
“The idea of putting physical metal in a safe jurisdiction like Singapore with parties they can trust is becoming a big trend nowadays,” says Gregor Gregersen, founder of The Reserve.
Alessia Pierdomenico | Bloomberg | Getty Images
The ultra-rich are increasingly parking their gold in Singapore as global risks and Trump volatility mount
Not far from Singapore’s airport sits a six-story facility covered in onyx and fortified by tight security. Tucked behind its steel doors are gold and silver bars amounting to about $1.5 billion. Known as “The Reserve,” the storage facility features scores of private vaults and a towering storage chamber lined with thousands of safe deposit boxes reaching three stories high.
From the start of the year to April, the precious metals repository has received an 88% increase in orders to store gold and silver in the vault from the same period in 2024, said its founder, Gregor Gregersen.
“The idea of putting physical metal in a safe jurisdiction like Singapore with parties they can trust is becoming a big trend nowadays,” he said, adding that 90% of the new orders are coming from outside of Singapore.