NEED TO KNOW
UAE OPEC exit announced: The UAE announced its withdrawal from OPEC and OPEC+ after 59 years. The UAE said that the decision, effective since May 1, will help the country meet growing global energy demand in the long term after recent investments to expand its production capacity, while leaving the group will provide more flexibility. This is widely perceived as a major blow for OPEC, as the group loses about 15% of its capacity and the departure weakens its ability to influence the direction of prices. With the UAE free to hike its output, this could lead to possible downward pressure on oil prices, especially once the Hormuz crisis is resolved. The move also paves the way for closer ties between the UAE and US, as President Trump has previously attacked OPEC for "ripping off the rest of the world".
ME US-Iran talks stall: President Donald Trump stated he is likely to reject Iran's latest peace proposal to end the ongoing war, saying Tehran has "not yet paid a big enough price". Iran submitted a plan via mediators that focuses on reopening the Strait of Hormuz and lifting the US blockade, while deferring complex nuclear talks to a later stage. Trump has reviewed the proposal but expressed dissatisfaction, leaving open the possibility of resuming strikes if Iran "misbehaves," amid pressure over high energy prices and disrupted global shipping. The conflict, now over two months old, continues to roil markets and energy supplies with no immediate resolution in sight.
DE US troop withdrawal: The Pentagon announced that the US will withdraw approximately 5,000 troops from Germany over the next six to twelve months. This decision follows a period of heightened friction between President Trump and German Chancellor Merz regarding the US-Israel conflict with Iran.
EU President Trump announces he will hike tariffs on EU cars to 25%: The US President announced plans to raise tariffs on cars and trucks imported from the EU to 25%, accusing the bloc of failing to comply with the trade deal that was signed last year. The move is tied to broader transatlantic frictions, including over the Iran war.
UK Knife attack, terror threat level raised to severe: 45-year-old Essa Suleiman has been arrested for a knife attack that occurred in London. He stabbed two Jewish men seriously injuring them in Golders Green, as well as a Muslim man that same morning, for which Suleiman faces three counts of attempted murder. The Joint Terrorism Analysis Centre (JTAC) raised the UK's national terrorism threat level from "substantial" to "severe" the following day, the first time it has reached this second-highest level in over four years. "Severe" indicates a terrorist attack is now considered highly likely in the coming months.
US Fed leaves rates unchanged with highest dissent level since 1992: The Federal Reserve left interest rates unchanged following its latest meeting, however the FOMC was unusually divided, with votes split 8-4. Fed governor Stephen Miran dissented because he preferred to lower the fed funds rate by 25 basis points and 3 other Fed officials dissented on language in the post-meeting statement that suggested the next time the Fed changes rates, it will be to lower them. During the news conference following the central bank’s decision, Chair Powell also said he intends to remain on the board of governors after his term as Chair expires on May 15 to protect the independence of the central bank.
AI OpenAI misses targets: A report by the Wall Street Journal revealed that the AI giant missed internal revenue and user growth targets, causing Sarah Friar, the company’s CFO, to disclose her concerns to other company leaders over the firm’s ability to pay for future computing contracts if revenue growth fails to accelerate. Shares of OpenAI’s investors and partners, including Nvidia and Oracle, fell on the news.
CHI Beijing blasts "Made in Europe" plan: China has warned it will retaliate if the EU moves ahead with its recently unveiled “Made in Europe” plan, which would favor locally produced goods in strategic sectors such as cars, green technology, and steel. Beijing argues the plan amounts to “systemic discrimination”, as it could force Chinese firms to transfer technology or partner with European companies in order to operate in the bloc. The dispute highlights a broader escalation in EU-China trade tensions as Europe seeks to protect its industrial base, avert job losses and reduce dependence on heavily subsidized Chinese imports.
SK Korea becomes the world’s eighth-largest stock market: In a historic shift for global finance, South Korea has officially overtaken the United Kingdom to become the world’s eighth-largest stock market. This milestone achievement was driven by a powerful rally in AI-linked technology shares amid a better-than-expected economic backdrop. South Korea's total market capitalization has surged +45% year-to-date, to a record $4.04 trillion.
US Spirit Airlines shuts down after 34 years: The embattled low-cost carrier shut down its operations this week, with all of its flights cancelled, and customer service no longer available. Although Spirit had gone bankrupt twice before, the company, which employed 17,0000 people before its closure, cited high oil prices due to the Iran war as one of the main reasons for its collapse.
BE Plan to nationalize nuclear plants: Belgium's government announced it is planning to buy its nuclear reactors from French power giant Engie, in order to secure the nation’s energy supplies. The proposed transaction covers Belgium’s entire nuclear fleet of seven reactors, along with personnel, subsidiaries, and all related assets and liabilities. Last year, Belgium also repealed its 2003 nuclear phase-out law, signaling a long-term return to nuclear power as a central pillar of its energy strategy.
JP Currency intervention: According to a Bloomberg analysis of central bank accounts, Japan likely spent around ¥5.4 trillion, or roughly $34.5 billion, in foreign exchange markets to prop up the yen, triggering the currency’s sharpest rally in three years on Thursday.
GOOD TO KNOW
Canada’s new sovereign wealth fund raises questions
This week Canada announced the creation of the Canada Strong Fund, its first national sovereign wealth fund, with an initial $25 billion in public seed capital to be deployed over three years. Led under Prime Minister Mark Carney, the fund is designed to invest alongside private sector partners in strategic domestic sectors such as energy, critical minerals, agriculture, infrastructure, and advanced manufacturing. It aims to strengthen long-term economic growth, reduce reliance on foreign (particularly US) markets, and build national capital by reinvesting returns rather than distributing them. The government has also indicated plans for a retail investment product allowing individual Canadians to participate directly.
Critics, however, argue it is not a true sovereign wealth fund in the traditional sense, like Norway’s Government Pension Fund Global, which is funded by resource exports and heavily diversified into global assets for high, stable returns, averaging 6.6% since 1998. Most importantly, Norway’s fund has strict rules against heavy domestic allocation to prevent political favoritism and economic distortions.
Canada’s version is primarily a domestically focused developmental tool seeded with borrowed or deficit-financed public money, raising fears it could function as a government-directed slush fund vulnerable to political interference, cronyism, or low-yield "strategic" projects that prioritize national goals over commercial performance. Economists warn this approach risks poorer long-term returns, increased public debt servicing costs for taxpayers, and failure to build true national wealth.
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US Purdue Pharma to be dissolved: The maker of OxyContin has ceased operations and concluded its bankruptcy as part of a $7.4 billion settlement addressing its role in the opioid crisis, which has been linked to more than 900,000 deaths in the US since 1999. Purdue is being replaced by a new nonprofit/public benefit entity, Knoa Pharma, which will be overseen by a new board and focus exclusively on developing and distributing opioid addiction treatments and overdose reversal medication. The Sackler family will be contributing $7 billion over 15 years to government entities to fight the opioid crisis.
AUS Australia to tax tech giants to fund newsrooms: The Australian government new plans to force major tech companies to either pay Australian news publishers for journalism that appears on their platforms or face a 2.25% levy on their local revenue. The government expects the incentive would raise $144 million-$179 million a year, which would be distributed among news organizations based on how many journalists each organization employs. The tech giants sharply criticized the proposal, calling it a “digital services tax”, with Meta highlighting that news organizations “voluntarily post content on our platforms because they receive value from doing so.”
CH Parliament recognizes Yenish and Sinti people: Switzerland's parliament declared the 20th-century persecution of Yenish and Sinti (including forced child removals) a crime against humanity. The vote recognizes historical wrongs and calls for protections for nomadic communities and their cultural traditions.
UK New marathon world record: Kenyan runner Sabastian Sawe set a historic marathon world record of 1:59:30 at the 2026 London Marathon becoming the first person to break the two-hour barrier in official race conditions. German sportswear maker Adidas' shares rose on the news, as the feat was accomplished with the brand's Adizero Adios Pro Evo 3 trainers, the company’s lightest-ever “super shoe” weighing just 97 grams.
KSA LIV Golf loses Saudi funding: Saudi Arabia's Public Investment Fund will end funding for LIV Golf after the 2026 season, following billions invested.This represents a major turning point for the breakaway league that has reshaped men’s professional golf since its launch in 2022. LIV was widely seen as a disruptive challenge to the PGA Tour, using massive financial incentives to lure top players and was also criticized as a “sportswashing” project. LIV plans to seek new investors and continue in some form, while players face uncertainty about returning to the PGA Tour.
AI Claude agent deletes company database: A Cursor AI coding agent (powered by Anthropic's Claude Opus 4.6) has left PocketOS reeling after it deleted the company’s entire production database and its backups in ~9 seconds. The company, which sells software to car rental businesses, said that client were stranded when they arrived to collect vehicles from businesses that had lost access to the software used to manage reservations and assign cars. The AI agent later “confessed”: “I violated every principle I was given”.
JP Toto stock surge on AI pivot: Japanese toilet maker Toto saw its shares surge up to 18% (a record one-day gain) after announcing increased investment in its semiconductor components business, particularly electrostatic chucks, components used in chip manufacturing for AI/data centers. This is not a full pivot, but an expansion of an existing profitable division, capitalizing on the surging AI-driven chip demand.
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