Top 5 news of the week
Turning a blind eye to geopolitics
One week ago, Iran announced the reopening of the Strait of Hormuz, and the markets ended the week on a high note. However, this opening only lasted a few hours. The two parties quickly accused each other of violating the ceasefire. As a result, Iran and the United States continue their blockades and ships still pass through slowly. In this context, oil prices have exceeded $100. But this blockade does not stop Wall Street from advancing. American indices reached new records this week.
Semiconductors and the rest of the world
Stock markets are able to overlook geopolitical tensions, in part because of the steady growth in the semiconductor sector. The SOX index has been on an 18-day consecutive rise, its longest streak ever recorded. This week, earnings reports further confirmed the sector’s strength. SK Hynix mentioned that the demand for memory chips will surpass supply for the next three years. Texas Instruments saw a 90% year-on-year growth in its data center segment. Lastly, Intel’s forecasts exceeded expectations, leading its stock to reach a new all-time high on Friday.
Kevin Warsh’s big moment
This week, Kevin Warsh faced a crucial moment, nominated by Donald Trump to succeed Jerome Powell as the head of the Fed. During his Senate hearing, the former governor (2006-2011) was highly critical of the Fed, suggesting a need for a “change of direction.” His nomination had been previously blocked by a senator requesting the end of the Justice Department’s investigation against Jerome Powell. On Friday, prosecutor Jeanine Pirro finally asked for the investigation, related to renovation costs at the Fed’s headquarters, to be closed.
Apple’s leadership transition
In a surprising announcement, Apple’s iconic CEO, Tim Cook, will step down in September. John Ternus, the current product head, will take over. Tim Cook will assume the role of chairman of the board. Leading Apple since Steve Jobs’ departure in 2011, Tim Cook has faced criticism for a lack of innovation but has turned the company into a cash-generating machine. Apple’s revenue has increased by 700% under his tenure, and the company has bought back $750 billion worth of shares in the last decade.
Ukraine secures European financing
In December, EU leaders agreed on a €90 billion loan for Ukraine, initially blocked by Hungarian Prime Minister Viktor Orban. With Orban’s recent legislative defeat, the loan was unlocked. This financing should cover two-thirds of Ukraine’s needs for the next two years, crucial as the country faced a liquidity shortage this year. During an informal summit in Cyprus, the 27 EU countries also adopted a 20th round of sanctions against Russia.
Best of the rest
Will artificial intelligence and narcissism govern the world? Or is it already happening? Several articles in the weekly press review discuss this topic. There are also beautiful photos, inspiring stories, and other news from around the world.
The Strait of Hormuz still transports about 20% of global oil and gas, and the disruptions in April created a daily supply deficit of 11.1 million barrels. American service providers, tube manufacturers, specialized actors now play a crucial role in the evaluation of energy security. Who are the winners and losers?
