U.K. Prime Minister Keir Starmer leaves Downing Street on February 02, 2026 in London, United Kingdom.
Alishia Abodunde | Getty Images News | Getty Images
Hello, this is Katie Foley writing to you from London. Welcome to another edition of CNBC’s Daily Open.
Three world leaders, three pressure-cooker situations. This week is shaping up to be very impactful for U.S. President Donald Trump, Chinese President Xi Jinping and U.K. Prime Minister Keir Starmer.
The U.S. leader is on a knife-edge over Iran, after rejecting Tehran’s counterproposal to end the 10-week war. Trump’s trip to Beijing this week to meet with his Chinese counterpart has already been delayed once, with worries that Iran will overshadow other key agenda items like tariffs and rare earths.
And it’s all coming to a head for the U.K’s embattled leader Keir Starmer, after a disastrous showing for his Labour Party in local elections – among its worst losses in decades.
What you need to know today
U.S. President Donald Trump rejected Iran’s counterproposal to end the 10-week war in the Middle East, calling it “totally unacceptable,” while Tehran vowed to “never bow,” prolonging a standoff that has choked the Strait of Hormuz and roiled global energy markets. Israeli Prime Minister Benjamin Netanyahu said on Sunday that the war with Iran is “not over,” as the U.S. and Israel still aim to bring an end to Tehran’s nuclear ambitions.
Oil is moving higher, making gains against last week’s losses. Asian markets are diverging with South Korea’s Kospi scaling another fresh record, but the rest of the region is mixed and fairly muted, with that sentiment also echoed in futures for U.S. and European markets.
In the U.K., the Pound is under some pressure as Prime Minister Keir Starmer fights for his political life with a high-stakes ‘reset’ speech today, after his ruling Labour Party suffered major losses in local elections. But it may be too little, too late – with former minister Catherine West saying she will launch a leadership challenge today unless a cabinet minister puts themselves forward to challenge Starmer.
On the data front, China’s consumer and producer inflation jumped more than expected in April as the Middle East conflict drives commodity costs higher. Export growth also gathered pace in April as factories raced to meet a wave of overseas orders from buyers seeking to stockpile components amid fears the Iran war could push global input costs even higher.
The Iran war is likely to take center stage in the summit between President Donald Trump and China’s Xi Jinping this week, leaving less scope to resolve issues like tariffs and rare earth supplies. The U.S. leader is set to arrive in Beijing on Wednesday evening, with an opening ceremony and bilateral meeting the next morning.
And in earnings, Saudi Aramco reported a 26% year-on-year jump in first-quarter profits on Sunday, beating analyst forecasts, as a key pipeline allowing it to circumvent the choked-off Strait of Hormuz reached full capacity.
— Katie Foley
And finally…
Whisky business: Investors pin hopes on Trump’s Scotch tariff reversal after dire three years
President Donald Trump’s decision to remove the 10% tariff on Scotch whisky exports to the U.S. has brought relief to the embattled sector — and could also provide a much-needed boost to a niche corner of the industry: premium cask investing.
Cask investing involves buying an oak barrel filled with Scotch — either shortly after the spirit’s distillation or having already aged — and allowing its contents to mature over a period of 10 to 20 years, before selling it on.
Barrels are typically traded within the industry through individual contracts between blenders and distillers, often involving cask exchanges rather than money, or via specialist Scotch whisky brokers. Individual investors can also purchase casks of newly-distilled or maturing Scotch whisky, either for personal use or as a speculative bet with a view to selling at a profit in secondary markets.
— Hugh Leask
