The US economy contracted by 0.3% from January to March, its first decline in three years, amid uncertainty for consumers and businesses. Tariffs on steel and materials used in oil production can significantly impact oil companies, exacerbating the negative effects of falling oil prices. Falling oil prices signal pessimism about economic growth, prompting manufacturers to cut production, businesses to reduce travel costs, and families to reconsider vacation plans. The OPEC+ alliance, comprising eight major oil-producing countries, has shown little willingness to increase production, pushing back planned increases from 2025 to October 2026. This decision was made after the group postponed production hikes scheduled for January 1.
https://apnews.com/article/exxon-mobil-oil-trump-tariff-recession-8fc6bfd4de13db80b62be1df6c0fb23cPakistan's Prime Minister has expressed concern over India's actions on water disputes, calling them a "weapon of aggression" that violate international accords. The dispute is related to the Indus Waters Treaty between Pakistan and India. China has reiterated its support for Pakistan's position, with Foreign Minister Wang Yi backing Pakistan's call for a reliable and transparent investigation into the Pahalgam incident. The Prime Minister thanked China for its endorsement, particularly in light of growing tensions in South Asia.
https://www.brecorder.com/news/40360613/china-puts-its-weight-behind-pakistanPakistan's manufacturing sector growth slowed to a seven-month low in April, with the PMI falling to 51.9 from 52.7 in March, due to concerns over global trade. Head of Equities & Research at HBL, Humaira Qamar, attributes this to US President Donald Trump's trade tariffs, warning that any US stagflation could hurt Pakistan's exports, particularly to the US, which accounts for 18% of its total. Despite this, the PMI remains above 50, indicating expansion amid a favourable inflation outlook, with Qamar expecting an interest rate cut due to strong deflationary pressures.
https://www.brecorder.com/news/40360681/pakistans-factory-pmi-dips-in-early-sign-of-global-tariff-headwindsSouth Korea's manufacturers face significant challenges due to US tariffs and domestic economic uncertainty. The country agreed with the US to remove new tariffs in exchange for a pause on reciprocal duties, including a 25% duty on South Korean goods. This comes after former President Yoon Suk Yeol's failed attempt to impose martial law, which heightened political uncertainty. Manufacturers' outlook turned pessimistic, marking the worst sentiment since June 2020, with input purchases and backlogs falling by record margins in 31 months and 26 months, respectively.
https://channelnewsasia.com/business/south-korea-factory-activity-suffers-worst-slump-2-12-years-us-tariffs-pmi-shows-5103801The United Nations is considering a major overhaul, merging dozens of agencies into four primary departments: peace and security, humanitarian affairs, sustainable development, and human rights. The proposed changes aim to address "overlapping mandates," "inefficient use of resources" and "fragmentation and duplication." Under one option, the World Food Programme, UN children's agency, WHO, and refugee agency would be merged into a single humanitarian entity. The reform plan was prepared by a task force appointed by Secretary General António Guterres, who aims to make the body more cost-effective.
https://www.malaymail.com/news/world/2025/05/02/massive-un-shake-up-leaked-memo-reveals-plans-to-merge-major-agencies-amid-us-aid-cuts/175340The Karachi Stock Exchange (KSE-100) recovered from its decline due to statements by US Administration indicating they are working to prevent tensions between India and Pakistan from escalating into a broader regional conflict. The KSE-100 closed lower on Wednesday, but the market rebounded with contributions from UBL, EFERT, HUBC, LUCK, MEBL, and HBL, which collectively added 1,238 points to the index. US Secretary of State Marco Rubio urged India and Pakistan to work together to de-escalate tensions after a militant attack in IIOJK.
https://www.brecorder.com/news/40360632/pakistan-stocks-rebound-kse-100-index-closes-the-day-with-25-gainThe US is pushing to conclude tariff talks with South Korea as soon as possible, but the Korean government is trying to buy time until a new president takes office. Former Prime Minister Han Duck-soo stepped down to run for president and former Finance Minister Choi Sang-mok resigned after being impeached by the Democratic Party. The US is seeking a deal, while experts predict the Korean government will stall to gain an advantage in negotiations.
https://koreajoongangdaily.joins.com/news/2025-05-02/business/economy/None-at-the-helm-USKorea-trade-talks-adrift-after-key-leadership-resignations/2299169The US has reached an agreement with Ukraine to provide access to critical subsoil elements needed for cutting-edge technologies such as electric car batteries, smartphones, and computer chips. The deal includes a joint investment fund to help rebuild Ukraine once the Russian invasion ends. Ukraine will contribute 50% of revenues from mineral sales, oil, and gas projects, while retaining full ownership and control over its resources on land and in territorial waters.
https://www.rferl.org/a/ukraine-us-minerals-deal-rare-earths-russia-trump-putin/33403131.htmlUS Vice-President J D Vance has called Prime Minister Narendra Modi a "tough negotiator" during an interview with Fox News, predicting that India could be among the first countries to strike a trade deal to avoid reciprocal tariffs. Vance stated that the US wants to rebalance trade and open up the Indian market to American technology and farmers, which he believes will create more good American jobs. The negotiations between New Delhi and Washington aim to address tariff and market access issues, following President Donald Trump's announcement of sweeping tariffs on several countries in April.
https://www.ndtv.com/world-news/pm-modi-tough-negotiator-trade-deal-with-india-over-tariffs-soon-jd-vance-8312655