Macro at a Glance
During a Middle Eastern visit from May 13-16, Donald Trump secured over "$2,000 billion in cumulative commitments with Saudi Arabia, Qatar and the United Arab Emirates." In Riyadh, he finalized a $142 billion defense contract and committed $600 billion toward energy, infrastructure, and artificial intelligence initiatives. Qatar Airways placed a historic aircraft order for 210 Boeing jets valued at $96 billion, while the UAE announced significant technology partnerships including substantial Nvidia chip purchases and an AI data center.
Japan's bond market experienced historic volatility in May. The nation posted record yields—3.15% on 30-year bonds and 3.7% on 40-year bonds—amid auction failures and macroeconomic uncertainty. Prime Minister Shigeru Ishiba characterized Japan's fiscal condition as comparable to Greece's, given a debt-to-GDP ratio of 237%, the highest globally. Rising interest payments continue constraining growth prospects.
On May 19, the UK and European Union held their first official post-Brexit summit, establishing a Security and Defence Partnership. The framework enables UK defense firms to participate in the proposed €150 billion Security Action for Europe fund, though immediate access remains unavailable. The pound strengthened modestly following the announcement.
The India-Pakistan conflict intensified dramatically in May following an April 22 militant attack killing 26 civilians near Pahalgam. India launched "Operation Sindoor" on May 7, striking nine Pakistani sites with missiles. After four days of escalation, both nations agreed to a ceasefire on May 10 following international diplomatic pressure.
One Sector, One Insight
Basic Materials and Energy
Donald Trump approved Nippon Steel's $14.9 billion acquisition of U.S. Steel on May 23. Conditions include maintaining the Pittsburgh headquarters, requiring an American CEO, and ensuring American citizens comprise the board majority. The government retains a "golden share" allowing strategic decision veto power. U.S. Steel shares surged over 17% following the announcement.
Consumption and General Public Services
Diageo launched a "$500mn savings plan between now and 2028" targeting logistics, marketing, and asset disposals. The spirits sector faces pressure from declining demand and evolving consumer preferences toward sobriety, affecting major players including LVMH and Pernod Ricard.
Financial Services
Warren Buffett announced his retirement as Berkshire Hathaway CEO by year-end 2025 during the May 4 shareholders meeting. Greg Abel will succeed him while maintaining the company's investment philosophy and culture. Buffett committed to retaining his Berkshire shares.
Healthcare
Trump signed an executive order implementing "Most Favored Nation" pricing on May 12, targeting 30-80% reductions in U.S. drug costs by aligning American prices with international minimums. Pharmaceutical manufacturers faced 30-day compliance deadlines.
Industrials
CATL, a Chinese battery giant and Tesla supplier, raised $4 billion through Hong Kong's largest 2025 IPO on May 20, offering 117.9 million shares at HK$263 each despite U.S. concerns regarding military associations.
Technology and Network Equipment
Nvidia reported record fiscal Q1 2026 revenues of $44.1 billion (up 69% annually) on May 28, driven by AI chip demand. The Data Centre segment generated $39.1 billion despite a $4.5 billion charge from Trump administration export restrictions to China. Stock rose 3% subsequently.
Stock of the Month
Centrus Energy shares climbed over 83% in May following better-than-expected results and announcement of four federal contracts worth up to $2.7 billion over ten years for HALEU nuclear fuel production.
Key Performances (As of May 31, 2025)
| Index/Asset | Value | Monthly Change | YTD Change |
|---|---|---|---|
| S&P 500 | 5911.69 | +6.15% | +0.51% |
| Dow Jones | 42270.07 | +3.94% | -0.64% |
| NASDAQ | 19113.77 | +9.56% | -1.02% |
| FTSE 100 | 8772.38 | +3.27% | +6.20% |
| CAC 40 | 7751.89 | +2.08% | +4.84% |
| DAX | 23997.48 | +6.67% | +19.84% |
| SMI 20 | 12227.08 | +0.91% | +5.19% |
| MSCI World | 3863.48 | +5.69% | +4.20% |
| VIX | 18.57 | -24.82% | +7.03% |
| CHF/USD | 1.2169 | +0.21% | +10.47% |
| CHF/EUR | 1.0709 | +0.45% | +0.65% |
| Brent ($/bbl) | 61.99 | -3.52% | -18.36% |
| Gold Spot ($/oz) | 3289.40 | -0.89% | +23.71% |
Upcoming Events
- June 15-17: G7 Summit
- June 16-17: Bank of Japan Meeting
- June 17-18: Federal Reserve FOMC Meeting