Daily Buzz: 1 May 2026

Volatility in Global Oil Markets, Deadlock in Iran War

Global oil prices in Asian trading yesterday surged to their highest since the Iran war started on February 28 as a deadlock between Washington and Tehran over how to end the war continued and US media reports suggested President Donald Trump was being briefed on possible options that included limited but powerful military strikes on Iran. However, prices retreated somewhat in New York trading, though remaining above US$100 a barrel. Global benchmark Brent futures surged as high as US$126 a barrel before ending in New York at US$110.40 a barrel. Part of the market volatility was caused by the end of April rollover of the current futures contract to July from June.

High oil prices continue to ripple through the global economy, affecting everything from gasoline prices at the pump, jet fuel costs and food prices to fertilizer supplies and common consumer items made from petroleum derivatives, including polyester fibers, plastics and cosmetics

Iran mocked the rising cost of fuel, with the speaker of parliament saying: "Next stop, 140!" Iran has proposed a peace plan that includes reopening the oil-vital Strait of Hormuz but delaying discussions on its nuclear program until after the war. Washington has rejected the plan insisting that Tehran give up its nuclear ambitions as part of any deal. The US said it will keep its blockade of Iranian ports until Iran accepts its terms for peace. The Pentagon said the two-month war has cost the US US$25 billion so far.

Trump Lambastes German Chancellor Over Iran Remarks

President Donald Trump threatened to scale back US military forces in Germany and said German Chancellor Friedrich Merz should focus on "fixing his own broken country" and spend less time "interfering" in Iran. The attack on Merz came after the German leader's earlier remarks criticizing the US handling of the war and saying that the US was being "humiliated" by Iran. Between 36,000 and 39,000 US personnel are stationed in Germany. Trump has been chafing over the refusal of NATO members to join the war, with earlier scathing remarks aimed at UK Prime Minister Keir Starmer.

US Seeks to Diminish China Influence in the UN, Report Says

The US says it won't release billions of dollars it owes to the UN until the world enacts more financial reforms and moves to counter China's influence at the global organization, Reuters reported, citing a report from independent development news agency Devex. It said the US wants China blocked from channeling tens of millions of dollars into a discretionary fund held in the office of the UN secretary general, which it says gives China influence in the UN. It also wants cuts in the UN pension system, travel perks for senior UN officials and a 10 percent reduction in peacekeeping missions. The Chinese mission to the UN, commenting on the Devex reported, said US arrears payments to the body are a "root cause" of UN financial difficulties and noted China has always fulfilled its financial obligations. Any attempt to block what China called its cooperation with the UN are "doomed to failure," the mission said.

Top Business

China's 3 Biggest Airlines Return to Profit

Air China, China Eastern and Southern Airlines returned to profit in the first quarter from year-earlier losses despite the disruptive impact of the Middle East war on the global industry since the war in Iran began February 28. In earnings statements to the Hong Kong stock exchange, China's three largest carriers didn't mention the 84 percent spike in jet fuel prices since the war started. Airlines have been raising passenger surcharges and cutting some flights to cope with rising fuel costs. The war repercussions come as the airlines are recovering from a year of biting competition in low airfares, slowed consumer spending and the growing attraction of lower fares on China's high-speed rail network. Airfares ahead of the five-day Labor Day holiday that begins today in China have jumped up to 10 percent, with some domestic routes seeing price surges as high as 14 percent from a year earlier, China News Service reported.

Air China, the nation's flagship carrier, said it turned to first-quarter profit of 1.7 billion yuan (US$250 million) from a year earlier loss of 2 billion yuan. Revenue rose 11 percent to 45.5 billion yuan on what the carrier called cost-cutting measures and route optimization. Operating costs in the period rose 2 percent. The airline didn't provide data on passenger and cargo numbers, or loading factors. Air China was operating a fleet of about 500 aircraft at the end of last year.

Shanghai-based China Eastern Airlines posted profit of 1.6 billion yuan, turning from a 995-million-yuan loss in the same period a year earlier. Revenue rose11 percent to 37 billion. Operating costs rose 3 percent. The carrier was operating a fleet of 826 aircraft at the end of 2025. The airline didn't provide data on passenger and cargo numbers, or loading factors.

China Southern Airlines turned to a profit of 1.5 billion yuan from a year earlier loss of 747 million yuan. Revenue rose 10 percent to 47.8 billion yuan. The airline didn't provide data on passenger and cargo numbers, or loading factors. The carrier and its subsidiary Xiamen Airlines announced a US$213.8 billion deal with Airbus to buy 137 aircraft in the A320neo family, with deliveries to start in 2028 and run through 2032. Southern Air also announced a share placement to raise up to 150 billion yuan, mostly earmarked for acquisition of 46 of the 102 aircraft it has ordered.

Seres Ekes Out Q1 Net Profit, Operating Profit Drops

Seres Auto reported net profit in the first quarter edged up 0.9 percent to 754 million yuan, but core operating profit, which excludes 652 billion in one-time items, tumbled 74 percent to 102.9 million yuan. Revenue rose 34 percent to 25.7 billion. The company's negative cash flow nearly tripled from a year earlier to 21 billion yuan. Sales of new energy vehicles in the quarter rose 44 percent to 78,500 units, with demand led by its Aito premium brand. Spending on research and development rose to 1.8 billion yuan from 1 billion a year earlier, and operating costs surged 39 percent. Headquartered in Chongqing, Seres has rapidly transformed into a new energy vehicle powerhouse, largely driven by its 2021 alliance with Huawei. Together, they co-developed the Aito brand, lending Seres' manufacturing prowess with Huawei's industry-leading autonomous driving and smart cabin technologies.

Cnooc Posts Profit Increase on Rising Energy Prices

China National Offshore Oil (Cnooc), the nation's third-largest oil producer, reported a 7.1 percent rise in first-quarter profit to 39.1 billion yuan on an 8.6 percent increase in revenue to 116.1 billion yuan. The earnings reflect higher crude and natural gas prices triggered by the war in Iran. The company said crude output in the period rose to 158.5 million barrels from 145.5 million a year earlier, and natural gas production rose to 272.5 million cubic feet from 253 million. Crude sales rose 11.3 percent and gas sales were up 2.3 percent. The company said capital expenditure rose 19 percent to 33 billion yuan. Cnooc reported four new discoveries in the period, and three new projects began operations.

Apple Profit Rises 19 Percent on IPhone Sales

Apple reported net income in its fiscal second quarter ended March 28 rose 19 percent to US$29.6 billion on a 17 percent gain in revenue to US$111.2 billion. Sales of iPhones, its biggest segment, rose 22 percent to US$57 billion but fell short of estimates. Chief Executive Tim Cook told analyst on a conference call that Greater China revenue rose 28 percent. Spending on research and development surged 33 percent in the quarter to US$11.42 billion, with the company saying AI investment will rise. Apple is the last of the so-called "Magnificent 7" titans of technology to announce quarterly reports. Analysts are now tallying up the capex spending projections from Apple, Tesla, Nvidia, Alphabet, Meta, Microsoft and Amazon, with some predicting that spending on AI could rise to US$1 trillion next year. AI spending levels have been a concern for investors uncertain when the massive investment will show commensurate profits.

Samsung Profit Hits Record High

Samsung Electronics, one of the world's biggest chipmakers, reported over an eightfold increase in first-quarter operating profit to a record 57.2 trillion won on a 69 percent increase in revenue to 133.9 trillion won (US$90 billion). The strong performance was fueled by its semiconductor division, particularly memory chips used in AI data centers, smartphones and other devices. Tight supply and rising prices supported earnings growth. Samsung has expanded its high-bandwidth memory business, a key component for AI infrastructure. It said demand for server memory is expected to remain strong into the second half of the year as AI adoption accelerates.

Economy & Markets

China Factory Activity Slows in April

China's factory activity in April beat forecasts even as expansion slowed from a record high a month earlier, reflecting a decrease in orders. The official manufacturing purchasing managers' index came in at 50.3, down 0.2 from the March high. The 50-mark separates expansion from contraction. The non-manufacturing index fell into contraction territory at 49.4, down from 50.1 in March, with services and construction sectors shrinking. The composite index encompassing them both fell to 50.1 from 50.5. Some analysts attributed softer orders to higher raw material costs related to the spike in oil prices during the war in Iran.

Cambricon Technologies Takes Top Spot as Priciest Stock

Cambricon Technologies, often called "China's Little Nvidia," became the costliest stock on Chinese exchanges after reporting a 185 percent surge in first-quarter profit to 1 billion yuan (US$146 million) on escalating demand for AI computing power and a 160 percent surge in revenue to 2.89 billion yuan. Shares in the Beijing-based startup rose 20 percent to 1,699.96 yuan, overtaking Yuanjie Semiconductor Technology, trading at 1,571 yuan, for the top spot. Investor zeal for AI-related shares has bounced liquor distiller Kweichow Moutai from its longstanding reign as the Chinese mainland's priciest stock.

French Software Firm Dassault Launches China Fund

Dassault Systèmes, a French multinational that supplies software for 3D products, initiated its first China-based venture capital fund, aiming to raise 750 million yuan (US$110 million) to invest in industrial AI, embodied intelligence and low-altitude aircraft, Yicai reported.

Corporate

Baosteel Profit Drops in Q1 After Rising in 2025

Shanghai-based Baoshan Iron & Steel, the listed unit of Baowu Steel Group, reported an 8.6 percent drop in first-quarter profit to 2.2 billion yuan (US$322 million) on a 5.7 percent gain in revenue to 77 billion yuan. For the full year, 2025 net profit rose 40.5 percent to 10.4 billion and revenue fell 1.4 percent to 317.5 billion yuan. The company reported a squeeze in profit margins between mid-2025 and early 2026. The company said ongoing efforts to curb excess capacity and reduce unruly competition in the steel sector could improve its bottom line, leading to a prediction that profitability will gradually strengthen.

China State Shipbuilding Profit Surges

China State Shipbuilding Corp, the world's largest shipbuilding conglomerate, reported a sharp rise in first-quarter earnings, driven by strong ship deliveries and higher prices. Net profit surged 252 percent from a year earlier to 4.8 billion yuan (US$703 million), with one-time gains contributing 65 billion yuan. Revenue rose 55 percent rise to 43.3 billion yuan. The Shanghai-listed company also announced earnings for the full year 2025. Profit surged 86 percent to 7.8 billion yuan on a 14 percent rise in revenue to 152 billion yuan. The US government is plowing new investment into its moribund shipbuilding industry to try to reduce China's maritime dominance.

Vanke's Woes Persist With First-Quarter Loss

China Vanke, a former high-flier in the Chinese mainland property market now flapping close to default, carried its string of deficits into 2026, though its first-quarter loss narrowed to 5.95 billion yuan (US$870 million) from 6.25 billion yuan a year earlier. The loss follows an 88.6-billion-yuan loss for the full year 2025. Revenue in the first three months of the year fell 24 percent to 28 billion yuan, and the group's debt-to-equity ratio was 77.1 percent. The company has been negotiating with creditor groups for several months to extend repayments on maturing foreign and domestic debt, staving off what could turn into China's biggest-ever default, which would have a ripple effect across the banking sector. Vanke, like other property developers, was bitten by a liquidity crunch that began in 2021 and led to a continuing slump in the mainland property market. Vanke's largest shareholder, Shenzhen Metro, a unit of the Shenzhen city government, has kept the company afloat with a series of loans.

VW Profit Slumps on China Competition

Competition from Chinese carmakers contributed to a 14 percent decline in first-quarter profit for German auto giant Volkswagen. The company said operating profit fell to 2.5 billion euros (US$3 billion) on a 2.5 percent decline in revenue to 76 billion euros. US tariffs also eroded profit. "Wars, geopolitical tensions, trade barriers, stricter regulations and intense competition are creating headwinds," said Chief Executive Oliver Blume in a statement. VW deliveries in China in the quarter dropped 15 percent to 548,700.

Trip.com to Increase Promotion of Chinese Tourism

Shanghai-based Trip.com, the largest online travel service provider in the world, said it plans to attract 200 million overseas tourists to China over the next five years, seizing a US$300 billion opportunity and catapulting the country to the largest inbound tourism market. Chairman James Liang told Yicai in an exclusive interview that his company plans to increase its investment in Europe to promote Chinese tourism brands.Trip.com said it handled 20 million overseas visits to China last year.