As the weekend wraps up, global markets, political tensions, and major corporate moves have dominated headlines. Here’s a breakdown of the key stories shaping the financial landscape and beyond.

Markets & Trade: A Shifting Landscape

• Treasuries Take Center Stage: As tensions in Trump’s trade war escalate, U.S. Treasury bonds have emerged as a standout investment choice, drawing increased investor attention.
• Bonds Begin Strong: The bond market opened the week on a solid note, with traders keenly awaiting crucial jobs data that could influence Federal Reserve policy.
• Equities Brace for Impact: Global equity investors are preparing for the next potential tariff shock from Trump’s administration, signaling caution in stock markets worldwide.
• Europe’s Stock Rally Surges Ahead: European equities have outperformed Wall Street in an historic run, reflecting renewed investor confidence in the region.

International Politics & Economy

• Germany Backs Canada Amid Trump Criticism: German Chancellor Olaf Scholz condemned Trump’s recent attacks on Canada, pledging support for the country amid rising trade tensions.
• Australia Adjusts Economic Outlook: The Reserve Bank of Australia is set to maintain its interest rate policy, as looming elections and Trump’s tariff threats add uncertainty. Meanwhile, Australia has revised its commodity export income forecast upwards for the year.
• Ukraine Stands Firm on U.S. Minerals Deal: Ukrainian President Volodymyr Zelenskyy ruled out any U.S. minerals deal that could jeopardize Ukraine’s bid for EU membership.
• Iran Rejects Direct Talks with the U.S.: In response to a letter from Trump, Iran reaffirmed its stance against direct negotiations.
• Trump’s Geopolitical Moves: Over the weekend, Trump threatened to bomb Iran if nuclear negotiations fail, suggested oil tariffs on Russia out of frustration with Putin, and even hinted at possible military intervention in Greenland.

China’s Financial Power Plays

• China’s Big Banks Get a Boost: China announced plans to inject $69 billion into four major banks to strengthen capital reserves. Additionally, China’s biggest state-owned banks plan to raise $71.6 billion in fresh capital.
• Chinese Markets Lead Emerging Peers: Chinese stocks continue to surge, outpacing other emerging markets, fueled by growing excitement over AI advancements.
• JPMorgan Eyes China’s Consumer Recovery: JPMorgan analysts believe now is the right time to invest in the recovering Chinese consumer market.

Corporate Moves & Tech Developments

• UniCredit’s Strategic Acquisition: The European Central Bank has approved UniCredit’s acquisition of Banco BPM, prompting the Italian bank to assess its next steps.
• Elon Musk’s Bold Deal: Musk has sold X (formerly Twitter) to his AI venture, xAI, in an all-stock deal worth $33 billion, signaling a major shift in his tech empire.
• Nvidia’s AI Power Play: Nvidia played a crucial role in shaping CoreWeave into a significant AI player ahead of its IPO.
• Volvo’s Leadership Shakeup: Volvo Car has reinstated former CEO Håkan Samuelsson to lead a company turnaround.
• European Private Equity Expansion: 65 Equity has expanded into Europe with a Swiss pharmaceutical merger, marking a major move in the investment landscape.

Crypto & Financial Innovation

• Japan Recognizes Crypto as Financial Products: Japan is set to grant legal financial product status to crypto assets, signaling a more structured approach to digital asset regulation.

The weekend has been packed with critical developments across markets, geopolitics, and technology. As we head into the new week, all eyes will be on how these shifts influence global economies, political alliances, and investment strategies.