Business

By Rocky Swift

Asian shares rose while oil prices remained elevated on Wednesday as markets looked for signals that a shaky truce between the United States and Iran will be extended.

Brent crude traded near $100 per barrel, and the greenback held gains from the previous session after Iran said the U.S. had violated a ceasefire. New Zealand’s dollar remained lower ahead of an expected hold by the central bank.

Japan’s Nikkei share gauge jumped to a record level, following all-time highs on Wall Street on AI optimism as the U.S. reopened after a holiday. Sentiment remains vulnerable, however, as talks continue to reach a lasting halt to the three-month-long conflict that has rocked energy markets, and central banker comments will be watched for how the crisis is impacting the picture for inflation and interest rates.

“The markets are just waiting for something tangible now when it comes to a deal between the U.S. and Iran,” Kyle Rodda, senior financial market analyst at Capital.com, wrote in a note. “A lot of good news is priced in, leaving room for disappointment if something comprehensive isn’t announced.”

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 1.2%, while the Nikkei surged 1.8%.

The dollar index, which measures the greenback against a basket of currencies, was little changed at 99.09 after a 0.15% gain in the prior session. The euro was up 0.09% at $1.1638, while the yen strengthened 0.05% to 159.19 per dollar. 

Iran’s foreign ministry said U.S. strikes in Iran’s southern Hormozgan province represented a “gross violation” of a ceasefire. The U.S. said its attacks were defensive in nature.

U.S. Secretary of State Marco Rubio said that a deal with Tehran to halt the conflict could “take a few days,” while Iran’s Tasnim news agency reported that Tehran was seeking the release of $24 billion of funds frozen overseas.

U.S. crude fell 0.89% to $93.05 a barrel, and Brent fell to $99.06 per barrel, down 0.52% but following a nearly 4% surge in the prior session.

The Reserve Bank of New Zealand is widely expected to hold its key rate at 2.25%. The main event in Australia on Wednesday is the release of consumer price data for April.

At a meeting of central bankers in Tokyo, Bank of Japan Governor Kazuo Ueda said supply shocks were looming large. European Central Bank board member Isabel Schnabel on Tuesday advocated for an interest rate hike in June even if a U.S.-Iran peace deal is reached.

Spot gold rose 0.36% to $4,522.14 an ounce, while copper rose 0.46% to $13,686.50 a metric ton.

In cryptocurrencies, bitcoin fell 0.18% to $75,883.90, and ether was little changed at $2,075.39.

(Reporting by Rocky Swift)

source

SAN JUAN, Puerto Rico (AP) — The head of Puerto Rico ’s key economic development agency announced his resignation on Tuesday as he criticized the U.S. territory’s administration of Jenniffer González, accusing it of interfering in the department’s work.

The departure of Sebastián Negrón Reichard from the powerful Department of Economic Development and Commerce comes at a critical moment for Puerto Rico as it seeks to revive its economy and attract wealthy investors.

Negrón Reichard noted in his statement that more than 10 officials with leadership roles at the agency — including its chief of staff, general counsel and the finance chief — also stepped down following what he called interventions by the government. He said those include reversing two summary suspensions that Negrón Reichard had issued after an investigation found improper interventions in the agency’s procurement activities.

The government’s actions “made it impossible to continue performing the duties of the position with the integrity and autonomy that the role requires and that every secretary owes to the public,” Negrón Reichard said.

He added that those actions also left “unprotected the staff who reported alleged irregularities in internal processes.” Negrón Reichard said he would not comment further, pending legal actions.

Gov. González expressed disappointment after reporters questioned her about the resignation and brushed off questions about alleged interference.

“I’m disappointed because I think he was a great agency secretary,” she said. “We accomplished a lot and worked hard.”

Meanwhile, Puerto Rico Senate President Thomás Rivera Schatz, who has recently been at odds with González, though they are from the same pro-statehood party, called the resignation “extremely regrettable.”

“I hope that those responsible for evaluating and understanding the scope of these circumstances will do so and take the corrective actions they need to take, which I’ve been warning them about for quite some time,” Rivera Schatz said.

“If they don’t, well, I’ll be talking to these people, and if they bring evidence to me that shows something is wrong, I’ll go after them,” he added.

source

By Scott Murdoch

SYDNEY, May 27 (Reuters) – Australia needs to overhaul complex regulations to boost innovation and revive its dwindling IPO pipeline, the country’s outgoing top corporate regulator said, warning that red tape was stifling startups and deterring public listings.

“Australia has, with good intent, added to the complexity, so the legislation now is almost impenetrable,” said Australian Securities and Investments Commission (ASIC) Chair Joe Longo, who ends his five-year term on Friday.

“We have a problem and at the moment the strategy is to get the regulators to try and administer the law more effectively, efficiently, simply not make it worse than it needs to be,” Longo told Reuters. “But I think we’re not good at law reform.”

Australia is seeking to lift productivity, attract foreign capital and support startups, but an overly complex regulatory environment can raise compliance costs, delay decision-making and deter new entrants, bankers and lawyers have said.

The country’s Corporations Act, administered by ASIC, is more than 3,300 pages long and has been criticised by bankers and lawyers as too burdensome.

ASIC oversees companies, financial markets and consumer credit regulation.

Reviving the country’s capital markets has been a major focus for ASIC under Longo’s leadership. Key initiatives included cutting one week from the typical 20-week company listing process.

Still, there were just $11 million worth of IPOs in Australia in the first quarter, one of the lowest levels since the global financial crisis in 2008, according to LSEG data.

Australia’s IPO market, while up from early 2025 when there were no listings, is well below its peak in the first quarter of 2021 when companies raised $542.2 million.

ASIC has urged the government and the Australian Securities Exchange (ASX) to consider lighter disclosure rules and easing some public company listing requirements to spur more new share sales.

“We have done a lot of work on this and the consistent feedback we got is there wasn’t much more ASIC itself could do,” said Longo, who will be replaced by the regulator’s Deputy Chair Sarah Court.

“I think our regulatory architecture is in pretty good shape, and I think that’s respected and acknowledged outside of the country,” he said. “Where I think we’re on more challenging ground … is we do have a problem with regulatory complexity.”

(Reporting by Scott Murdoch in Sydney; Editing by Jacqueline Wong)

source

May 26 (Reuters) – BP said on Tuesday it had removed Chairman Albert Manifold with immediate effect, citing “unacceptable” governance oversight and conduct issues.

Manifold was appointed to the role in October, although he received  lower-than-typical support. He has been pushing for a faster shift back to oil and gas investments.

The energy major said it had appointed Ian Tyler as interim chair while it starts searching for a permanent replacement.

(Reporting by Raechel Thankam Job in Bengaluru; Editing by Anil D’Silva)

source

BP has ousted its chairman over what it called serious concerns related to “important governance standards, oversight and conduct.”

The departure was abrupt and unexpected, with Albert Manifold having been appointed to the position just last year.

BP’s board named Ian Tyler as interim chair on Tuesday, effective immediately.

The company said that it will begin the process of finding a permanent chair.

BP, based in London, is a “supermajor,” one of the five largest oil production and exploration companies in the world by revenue and profit.

The company maintains operations in about 60 countries.

Shares tumbled 6% before the opening bell on the NYSE.

source

When we were children, it was common to be afraid of the boogeyman. As we age, the boogeyman gets replaced with a new fear:  running out of money in retirement.

This concern is understandable given so many Americans are now responsible for not only  building their retirement savings  but also deciding how much they should pay themselves annually in retirement.  It’s a problem many don’t feel adequately prepared to solve, especially when failure means a funding shortfall at the end of life.

Recent research from Morningstar’s Behavioral Insights Group finds half of retirees opt for highly simplified approaches for determining their retirement spending, such as calculating their current expenses, just spending dividends, or anchoring on required minimum distributions.

A set-it-and-forget-it approach may sound like a prudent solution to a common fear, but these simplified methods don’t account for factors such as your total wealth, life goals, or economic events like inflation. The resulting number tends to be inflexible and overly conservative.

In fact, contrary to our fears, retirees who have at least the median amount of assets  tend to underspend relative to how much they could spend safely. Indeed, across retirement, many retirees  see their wealth increase  instead of decrease. These findings hold true even when accounting for retirees who are planning to leave a bequest or who anticipate a long postretirement period.

This issue persists even among retirees who are using more complex spending strategies like a safe withdrawal rate.  “Even the retirees  who spend in line with our ‘base case,’ which in 2025 meant taking 3.9% initially and inflation-adjusting withdrawals each year thereafter, will tend to have significant remaining balances after 30 years of withdrawals,” says Christine Benz, Morningstar’s director of personal finance and retirement planning.

What’s at stake for these retirees, then, is not becoming destitute, but rather not fully enjoying the fruits of their labor.

If you’re a retiree, you may be underspending relative to your capacity if you:

1. Rely on simple, hands-off strategies like withdrawing only dividends and interest, basing calculations on your current lifestyle, or pulling just your RMDs.

2. Find your retirement savings portfolio barely declines or even grows year after year.

3. Defer essential or discretionary expenses that are reasonably affordable.

If this describes you, you are not alone. It’s natural to think, “The worst thing that could happen is running out of money, and I know I won’t if I just use this simple spending rule.” However, by creating a more personalized plan to determine your retirement income, you can avoid underspending and possibly generate a more comfortable and meaningful retirement lifestyle for yourself.

Our research suggests that to engage with more complex ways of determining their retirement income, many retirees may need the motivation of personal goals. When you’re working, goals help motivate you to save. In retirement, your goals can help  motivate you to spend.

To define your retirement goals, we first recommend examining which values you want to live in line with throughout your retirement. A framework like the  PERMA-V model  can help you articulate what matters to you. From there, you can build out financial goals that reflect the life you want to live.

For example, you may find that you value spending time in nature because when you hike, you feel happy and engaged in the world around you. Then, you might develop a list of the top 10 national parks you want to see and set a goal of visiting them all in the next 10 years. This new goal provides you with an exciting opportunity to spend your retirement savings in a way that feeds your values.

Armed with your new motivation, you should then begin to think about your retirement spending strategies. Do your current, simple strategies help you reach your new goals? If not, you may consider looking at some other (slightly more complicated) guidelines for retirement spending like a  safe withdrawal rate.

If engaging with more complicated strategies on your own is still intimidating, consulting a financial adviser can help you determine how to draw on your retirement savings while meeting your goals.

It can feel daunting to get more involved with determining your retirement spending, but don’t let that fear dictate whether you live the retirement you’ve dreamed of.

_____

This article was provided to The Associated Press by Morningstar. For more retirement content, go to https://www.morningstar.com/retirement.

Danielle Labotka, Ph.D., is a behavioral scientist for Morningstar.

RelatedLinks

3 Big Questions to Ask Your Aging Parents: https://www.morningstar.com/personal-finance/3-big-questions-ask-your-aging-parents

Here’s How You Can Spend More During Retirement: https://www.morningstar.com/retirement/heres-how-you-can-spend-more-during-retirement

You Just Retired (or Are About to). Now What?: https://www.morningstar.com/retirement/you-just-retired-or-are-about-now-what

source

May 26 (Reuters) – Private equity-backed government contractor Applied Aerospace & Defense is targeting a valuation of up to $3.59 billion in ​its U.S. initial public offering, as a wave of defense companies aim to capitalize ‌on investor appetite for the sector amid heightened geopolitical tensions. 

The Huntsville, Alabama-based company said on Tuesday it is seeking to raise as much as $682.5 million by offering 32.5 million shares priced between $18 and $21 apiece.

Companies such as Applied Aerospace & Defense are finding a more receptive audience among retail investors looking to hedge against global instability as the Middle East conflict drags on and defense budgets rise. 

The contractor builds ​a wide range ​of products, including ⁠fuselages, flight control surfaces, solid rocket motor cases and engine shafts for space and defense technology companies.

(Reporting by Pragyan Kalita in Bengaluru; Editing by Jonathan Ananda)

source

WASHINGTON (AP) — The Congressional Black Caucus on Tuesday called on major corporations across the U.S., including those that previously expressed support for voting rights and racial justice, to oppose redistricting efforts by Republican-led states that seek to eliminate majority-Black U.S. House districts.

In a letter sent to more than 250 companies, members of the Black Caucus urge them to condemn the redistricting efforts, which the lawmakers describe as “coordinated efforts to silence Black voices at the ballot box.” Some of the companies had co-signed their own message to Congress five years ago urging lawmakers to pass the John Lewis Voting Rights Act, a Democratic proposal to restore and update the Voting Rights Act.

That 2021 coalition, Business for Voting Rights, was backed by many of the country’s most valuable and influential companies, including Apple, Amazon, Google, Meta, Microsoft, Tesla, Salesforce, Target, PayPal, Intel and Starbucks.

Tuesday’s letter is the latest effort by the Congressional Black Caucus and its allies to gather support for preventing more Republican-led states from redrawing their legislative maps in ways that would dilute Black political representation. Several states have moved to eliminate congressional districts represented by Black Democratic lawmakers after a U.S. Supreme Court ruling last month that severely weakened a key provision of the Voting Rights Act.

“Corporations that have profited from Black consumers, relied on Black workers, and amassed wealth in part from Black communities cannot look away while Black political power is dismantled in plain sight,” Rep. Yvette Clarke, chair of the Black Caucus, said in an interview.

Clarke described the letter as “putting corporate America on notice,” but she said the caucus was not seeking an adversarial relationship with corporations. Among those receiving Tuesday’s letter were companies based overseas that have a significant presence in the U.S.

The caucus last week called for Black athletes to boycott public universities in states that are gerrymandering their congressional maps to eliminate districts held by Black lawmakers. The 59-member Congressional Black Caucus consists entirely of Democrats, including more than a third from Southern states.

Some lawmakers have said mass protests and federal legislation might be necessary to undo the efforts underway in Republican-led states. Any new federal voting rights law would almost certainly require Democrats to secure majorities in both chambers of Congress and win the presidency.

It is unclear how companies will respond to the demands. The Associated Press was making efforts to contact them.

“Many companies that previously issued statements after the murder of George Floyd, pledged billions toward racial equity initiatives, and spoke forcefully in defense of democracy following January 6 now face a defining test of whether those commitments were rooted in principle or convenience,” the caucus’ letter states.

It also represents the latest instance of the caucus expressing frustrations with corporate America. A 2024 Black Caucus report noted that lawmakers were “troubled that some corporations that made pledges in 2020 have taken several steps in the opposite direction,” such as rolling back or failing to follow through on pledges to diversify their workforces.

“We understand who the occupant in the White House is and the reality of Republicans being in charge,” Democratic Rep. Steven Horsford of Nevada said of the caucus’ message. “But what corporate America also understands is that there will be a shift at some point.”

The letter calls on companies to publicly condemn the redistricting plans, meet with Black Caucus members to discuss corporate America’s role in protecting voting rights and disclose their political donations to Republican politicians in states that are redistricting their congressional maps.

President Donald Trump last year kicked off the unusual mid-decade round of congressional redistricting when he pushed Texas lawmakers to redraw their maps in a way that would add Republican seats. Democratic-led California responded, but it has been mostly Republican states redrawing their lines since as the party tries to maintain its majority in the U.S. House during this year’s midterm elections.

The effort was supercharged by the Supreme Court decision, which allowed even more Republican states to redraw congressional maps that previously had protected minority communities.

Horsford, who chaired the Black Caucus during President Joe Biden’s Democratic administration, said the caucus is demanding that companies “stand on the side of democracy, fairness and equal representation.”

“This is about power, who holds it and what it’s used for,” he said. “And when you’re diluting Black economic and political power, we need to know where these companies stand in this moment, and what side of history they’re on.”

source

By Mike Dolan

May 26 (Reuters) – What matters in U.S. and global markets today

By Mike Dolan, Editor-at-Large, Finance and Markets

After a long weekend in the United States and many other countries, markets returned ready to cheer signs that an Iran peace plan was near agreement, with world crude prices falling nearly 7% to below $100 per barrel on Monday.

The peace plan under discussion would reportedly include a 60-day ceasefire extension and an eventual reopening of the Strait of Hormuz. But doubts over how soon a final text could be agreed were exacerbated by news overnight of fresh U.S. military strikes on Iranian targets.

I’ll get into that and more below.

But first, listen to the latest episode of the Morning Bid daily podcast. Subscribe to hear Reuters journalists discuss the biggest news in markets and finance seven days a week.

WRONG SORT OF ‘BOOM’ TO START THE WEEK

News of fresh U.S. strikes on Tuesday, described by Washington as defensive, saw oil reverse some of its losses from the day before, with Brent crude rising some 3% but remaining below $100 per barrel.

Meantime, stocks were mixed, with European shares wobbly and Wall Street futures pointing higher. That came after a rally on Monday that saw European shares rise and Japan’s Nikkei hit a record high.

The overall mood in markets seems to be that a deal is close, even though U.S. President Donald Trump’s addition of a proviso that regional states normalize relations with Israel added another wrinkle. Secretary of State Marco Rubio also cautioned that negotiations with Iran could “take a few days”.

Tuesday may therefore not be the booming start to the short week many had expected. U.S. consumer confidence readings for May will top the economic data slate for the day. Given that the University of Michigan’s equivalent survey is at a record low, the report will be closely watched.

Inflation updates will dominate the rest of the week, and the news is unlikely to be soothing for rates markets as gas prices remain high.

Once-dovish Federal Reserve board member Christopher Waller on Friday said he would vote with other dissenting policymakers to remove language from the Fed’s recent policy statement that pointed to an apparent “easing bias”.

And at Fed Chair Kevin Warsh’s swearing-in ceremony on Friday, Trump maintained a more equivocal line on Fed policy, saying Warsh had to do what he felt was best. Fed futures are pricing in at least one rate rise over the next year, and central banks in the euro zone and Japan are expected to hike rates as soon as next month.

Chart of the day

A chipmaker stock frenzy in China got another spur after tech champion Huawei Technologies said it would make industry-leading semiconductors using a new technology in five years. The news underscores Beijing’s efforts to neutralize U.S. sanctions that have made it hard for China to build cutting-edge chips.

An index tracking Hong Kong-listed chipmakers surged another 6% as HK markets returned from a long weekend on Tuesday, a move led by chip giants Hua Hong Semiconductor and Semiconductor Manufacturing International Corp.

Today’s events to watch

• U.S. May consumer confidence (10 a.m. EDT)

• U.S. 2-year note auction (1 p.m. EDT)

Want to receive the Morning Bid in your inbox every weekday morning? Sign up for the newsletter here. You can find ROI on the Reuters website, and you can follow us on LinkedIn and X.

Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

(By Mike Dolan)

source

By Giulio Piovaccari

ROME, May 25 (Reuters) – Ferrari presented its first fully electric car on Monday, marking a high-stakes shift by the luxury sports car maker as competitors including Porsche and Lamborghini scale back their EV ambitions, citing weak demand.

The four-door Luce, Italian for ‘light’, was developed with the help of former Apple design chief Jony Ive and his collective LoveFrom, and is Ferrari’s first five-seater.

Ferrari aims to appeal to families with deep pockets, offering them comfortable seats, high-end tech and a 600-litre boot. Deliveries of the long-awaited Luce, priced at €550,000 ($640,000), are due to begin in the fourth quarter of 2026.

“It’s the result of five years of work,” CEO Benedetto Vigna told more than 200 reporters gathered in Rome.

The Luce, which amplifies natural vibration sounds from its EV powertrain to maintain the visceral appeal of a traditional Ferrari, marks a gamble that a generation steeped in technology and AI, and less attached to its trademark 12- and 8-cylinder engine legacy, will shift to high-tech luxury EVs.

Ferrari is hoping that will also give it the opportunity to move further into markets such as China, where EVs are already widespread and big petrol cars are heavily taxed.

“In our client base there are many … who are still looking for something completely different, to be used in different moments of life,” said Ferrari’s chief marketing and commercial officer Enrico Galliera. 

“It’s absolutely stunning,” Galliera added of the car, which features four electric motors — one per wheel — which help deliver more than 1,000 horsepower, a top speed above 310 kph, and increased agility for a car weighing more than 2.2 tons.

Ferrari said the Luce has a range of over 500 kilometres.

A light show launch featured five Luces, painted from Ferrari-red to white and light blue, which mark a break from the carmaker’s aggressive, muscular, signature sporty style with a larger body and expansive, glass-led design.

The Luce interior defers to traditional Ferrari luxury, with leather, glass and anodised aluminium surfaces as well as several physical controls which differ from the all-digital, touch-led approach of Tesla and some Chinese EV makers.

($1 = 0.8593 euros)     

(Reporting by Giulio Piovaccari; Editing by Alexander Smith)

source