Daily Buzz: 4 May 2026

Top News

Trump Says US Will Free Some Stranded Cargo Ships in Gulf

US President Donald Trump said Sunday that the US will begin guiding cargo ships in the Persian Gulf through the Strait of Hormuz, which has been effectively closed since the war with Iran began on February 28., Trump said the operation, dubbed "Project Freedom," will focus on civilian vessels flagged under countries not affiliated with the conflict. An estimated 2,000 vessels have been stranded by Iran's blockade of the strait. Trump provided no details on how the operation will be executed. State media in Iran a day earlier reported that Iran's parliament is set to approve a law governing which vessels can pass through the Strait of Hormuz. Under the law, ships from Israel would be excluded, and ships from other "hostile" countries will be required to pay reparations for a transit permit. About 20 percent of global crude normally transits the strait, and the chokehold has caused oil prices to surge 50 percent above prewar levels. Benchmark Brent crude futures opened above US$107 a barrel when trading resumed Sunday evening.

The Trump administration said it is reviewing a 14-point peace proposal submitted to the US via Pakistani intermediaries, though Trump said he "can't imagine that it would be acceptable," saying Iran hasn't yet paid a big enough price for what they have done to humanity and the world over the last 47 years." No date has been set for a resumption of peace talks.

Trump also said his announced reduction of 5,000 US forces stationed in Germany is only the beginning, and more cuts will follow. Trump's relations with Europe have been fractured by its refusal to participate in the Iran war. Concerns have been raised that the US may reduce troop levels in other NATO countries, including Spain and Italy.

In Lebanon, Israeli forces have ordered evacuations of 11 small towns in the south, a stronghold of Iran-ally Hezbollah. Several towns have already been razed despite a ceasefire in name only.

Top Business

Huaneng Power Drops on Lower Output, Softer Tariffs

Huaneng Power, a major Chinese developer and operator of power plants, said first-quarter profit tumbled 9.8 percent to 4.5 billion yuan (US$659 million) on a 6 percent decline in revenue to 56.8 billion yuan. The Hong Kong-listed company said its earnings were weighed down by a decline in domestic electricity production and lower on-grid tariffs. Profit from coal-fired electricity rose 9 percent, but wind power profit dropped 20 percent and hydropower was flat. The company said research and development spending fell to 210 million yuan from 235 million yuan. The company's Shanghai-listed subsidiary Huadian Power International posted a 9.4 percent drop in revenue and a 10 percent fall in net profit, reflecting slower power demand and intensified competition in market-based electricity pricing. Analysts said deepening market reforms will put further pressure on on-grid tariffs this year and the nation's transition to clean energy will remain a challenge.

In a China Court Ruling: Man 1, Machine 0

A court in Hangzhou recently ordered compensation for a 35-year-old fintech employee who lost his job because of artificial intelligence. The employee, a quality control director of AI large models, was fired after refusing to accept demotion and a 40 percent pay cut. The court ordered the company to pay him 260,000 yuan (US$38,072), 10 times his former monthly salary, and said companies can't legally fire employees simply to replace them with cost-saving AI. Rather, companies should seek to retrain workers with upgraded skills, the court said.

China Optical Chip Companies Post Strong Profits

Yuanjie Semiconductor Technology topped the list of profit spinners among the 41 listed Chinese optical communications companies reporting earnings recently to the Shanghai STAR market. The results spanned both the first quarter and sometimes the full year 2025, with a majority of companies showing profit, thanks to explosive demand and higher prices for optical chips used in AI data centers. For 2025, Yuanjie Semiconductor reported profit growth of 3,212 percent, Huafeng Tech soared 2,120 percent and Shijia Photons was third with a gain of 473 percent. For the first quarter, Luster LightTech led the pack with a 1,233 percent profit surge, Yuanjie came second with 1,153 percent and Nanya New Material rose 611 percent.

Humanoid Robots Take on Traffic Duties

Fifteen humanoid robot traffic police were dispatched to intersections around West Lake in Hangzhou on May 1, tasked with duties such as stopping bike riders without helmets and responding to requests for directions. Humanoid robots were previously deployed in the city at half-marathons held in March and April. Robots will free up human officers required for more complex work. Hangzhou is a Chinese leader in robot development, with more than 700 companies.

Economy & Markets

OPEC+ Raised Monthly Oil Output

The seven major oil producers of OPEC+ agreed to raise oil output by 188,000 barrels per day in June, slightly less than May's 206,000-barrel increase, in order to "support oil market stability." The OPEC+ meeting on Sunday was reduced to Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman after the United Arab Emirates withdrew from the cartel on May 1. Global oil supplies have been shrinking since US and Israel launched strikes on Iran on February 28 and the Strait of Hormuz has remained effectively blocked.

China Lambastes US Sanctions on Independent Oil Refiners

China's Ministry of Commerce rebuked US sanctions against Hengli Petrochemical Refinery, accused by the US Treasury Department of purchasing Iranian oil. The ministry said in a statement that the action violates international law and the "basic norms of international relations." The criticism also covers sanctions last year on refineries operated by Jincheng Petrochemical, Xinhai Chemical, Luqing Petrochemical, and Shengxing Chemical. The US also issued sanctions against 40 shipping firms and vessels in the Trump administration's attempt to choke off Iranian oil-export revenue.

Spirit Airlines Falls Victim to Jet-Fuel Price Spike

US budget carrier Spirit Airlines became the first casualty of higher jet-fuel prices, ceasing operations over the weekend after failing to reach agreement with creditors on a US$500 million bailout loan from the Trump administration. The airline was already facing financial difficulty when jet fuel prices doubled because of the Iran war, affecting global aviation. The collapse of Spirit, which flew 50,000 passengers on its last day, affects 17,000 direct and indirect jobs.

Labor Day Holidaymakers on the Move

China's railway network transported a daily record of 24.8 million passengers on May 1, the beginning of the five-day Labor Day holiday. Xinhua said the network was expected to have transported nearly 20 million passengers a day later. China estimated that inter-regional trips on May 1 reached 344 million, a 3.4 percent increase from a year earlier, with road trips rising to 315 million. However, air travel is forecast to have slipped 0.7 percent to 2.3 million passengers on higher ticket costs triggered by a doubling of jet fuel prices since the start of the Iran war.

Corporate

Huatai Securities Profit Surges on Robust Capital Markets

Nanjing-based Huatai Securities reported first-quarter profit rose 32 percent from a year earlier to 4.8 billion yuan (US$702 million) on a 42 percent increase in operating revenue to 10.4 billion yuan, reflecting vibrant Chinese capital markets. Customer deposit funds in the period totaled 194 billion yuan, up from 175.6 billion a year earlier. Fee income from investment banking rose to 2.9 billion yuan from 1.9 billion yuan, fees from asset management increased to 480 million yuan from 424 million, and income from investments rose to 4.9 billion from 4.2 billion. Huatai said its ratio of net assets to liabilities was 31.4 percent and its capital leverage ratio was 13 percent.

Hisense Earnings Drop on Sluggish Aircon Sales

Chinese multinational home appliance maker Hisense said first-quarter profit fell 8.2 percent to 1 billion yuan (US$146 million) on a 7.2 percent decline in revenue to 23 billion yuan. The revenue decline came mainly on global sales of air conditioners, which fell 15 percent, largely as the Iran war interrupted major markets in the Middle East. However, sales of washing machines rose 15 percent, both domestically and abroad. The company's gross margin rose slightly to 22 percent. Qingdao-based Hisense is a major manufacturer of large-screen television sets, household white goods, mobile phones, computers and wireless modules.

Fosun Pharma Posts 14 Percent Profit Gain

Shanghai-based Fosun Pharmaceutical said first-quarter profit rose 14 percent from a year earlier to 870.8 million yuan (US$127.5 million) on a 6.9 percent increase in revenue to 10 billion yuan. The drug maker said it had innovative drug applications approved for marketing and 14 applications approved for clinical trials. Spending on research and development rose 22 percent to 896.8 million yuan. Last December the company's YaoPharm subsidiary entered an exclusive licensing agreement with Pfizer to develop and market an experimental weight-loss treatment in a deal that could be valued at up to US$1.9 billion. Hong Kong-listed Fosun Pharma is mostly owned by Chinese conglomerate Fosun International.