News updates from May 23: US lawsuit aims to split up Live Nation-Ticketmaster; China starts military drills around Taiwan

The US Securities and Exchange Commission has cleared a path for exchange traded funds that invest directly in the world’s second-largest cryptocurrency to launch later this year, according to a regulatory filing.

The SEC on Thursday granted rule changes in support of eight ETFs that would invest in ether, the native cryptocurrency of the ethereum blockchain. A second layer of approvals will be needed before the products from issuers including BlackRock, Fidelity, Grayscale Investments and Ark Invest could hit the market.

The ether ETFs would debut after the January launch of the first spot bitcoin ETFs in the US.

The US military has struggled to move aid to Gaza via a recently completed temporary pier as the project has been beset by logistical and weather challenges.

Since the US and Israel anchored the pier to Gaza’s shore last week the United Nations has distributed about 71 trucks worth of aid to people in Gaza, US officials said on Thursday.

Before the pier was completed, the US said the pier would be able to handle receiving 90 trucks per day of aid to start, with a goal of reaching 150 trucks per day eventually. 

The UN has said at least 500 trucks of aid per day are needed to meet significant needs in Gaza. 

US stocks reversed early gains, as signs of a tight labour market in the world’s biggest economy countered another set of blockbuster results from chipmaker Nvidia.

Wall Street’s S&P 500 closed 0.7 per cent lower in New York on Thursday, having made small gains to reach a record intraday high earlier in the session. The Nasdaq Composite dropped 0.4 per cent, also retracing an earlier advance. Nvidia shares rose 9.3 per cent to close at a record high.

The reversal followed jobs data released earlier on Thursday, which showed initial applications for US unemployment fell to 215,000 for the week ending May 18, versus a Reuters consensus estimate of 220,000.

The figures — although better than expected — suggest the labour market remains relatively tight, and sparked a sell-off in US government debt. Yields on interest rate-sensitive two-year Treasuries were up 0.06 percentage points to 4.94 per cent.

A $10bn property fund managed by Starwood Capital is significantly limiting its investors’ ability to exit their investments as it works to preserve liquidity and stave off a fire sale of real estate assets in what it believes are poor markets. 

The fund, known as Sreit, told investors on Thursday it is restricting investor redemptions to 0.33 per cent of assets a month, a more than 80 per cent decrease in their liquidity rights. Since its inception in 2018, the fund allowed investors to redeem as much as 2 per cent of its net assets monthly, or 5 per cent a quarter. 

Facing high redemption requests and dwindling liquidity, Starwood has decided to increasingly “gate” investors because it believes the US Federal Reserve will soon cut interest rates, providing for “sunnier skies” in which it would favour selling property.

Louisiana lawmakers passed a first-of-its-kind bill on Thursday that would reclassify two abortion pills as controlled substances, in the latest effort by Republican states to tighten restrictions on birth control.

The bill, which included an amendment that effectively bans abortion drugs mifepristone and misoprostol, was passed by a 29-7 majority in the Republican-dominated Louisiana state senate, with most lawmakers voting along party lines. The governor is expected to sign the bill into law later on Thursday. 

Louisiana has a near-total ban on medical abortions. The US Supreme Court is considering whether access to mifepristone should be restricted. 

US stock indices reversed early gains on Thursday, as investors weighed another set of blockbuster results from Nvidia against signs of reaccelerating business activity in the world’s biggest economy.

Wall Street’s S&P 500 was down 0.8 per cent by the afternoon in New York, having made small gains to reach a fresh all-time high earlier in the session. The Nasdaq Composite lost 0.6 per cent, also retracing an earlier advance.

Those moves came as early or “flash” indices from S&P Global showed signs of acceleration in both manufacturing and services in the US economy.

Treasuries sold off, pushing the yield on the two-year note 0.05 percentage points higher to 4.93 per cent. The yield on the 10-year note rose 0.04 per cent to 4.47 per cent.

A jury in Chicago found drugmakers GSK and Boehringer Ingelheim were not liable for the colorectal cancer of an 89-year-old woman who took their heartburn drug Zantac, in the first of thousands of cases to go before a jury.

A second case that was due to start in Illinois on Thursday has also been dismissed on technical grounds.

“This outcome is consistent with the scientific consensus that there is no consistent or reliable evidence that ranitidine increases the risk of any cancer,” GSK said of the active ingredient name for Zantac.

Pharmaceutical companies have faced thousands of claims since a Connecticut lab said in 2019 it found a carcinogen in Zantac. GSK and other companies that marketed the medicine have chosen to settle several previous cases.

Chinese electric-car maker Nio will continue to push ahead with its plans to expand in Europe, even as its chief executive criticised an EU investigation of EV imports from China saying it did not “make sense”.

William Li, who is often referred to as China’s Elon Musk, said the company would consider partnering with a local manufacturer to build a factory in Europe, although it first needed to build sales volumes in the region.

“We are from China but we are also a global company,” Li said on Thursday after Nio opened its first showroom in Amsterdam. “We are against such an approach where the tariffs are used to stop the flow and trade of electric vehicles.”

“I think that many of the accusations by the European Commission do not make sense,” he added.

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Elon Musk’s xAI has secured new backing from Silicon Valley venture capital groups Andreessen Horowitz, Sequoia Capital and Tribe Capital, as the billionaire closes in on a new funding round valuing the artificial intelligence start-up at $18bn.

The investors have committed to joining xAI’s latest financing in which Musk is seeking to raise close to $6bn, said people familiar with the negotiations.

However, one investor involved in the round said the Tesla and X chief remains “a few hundred million dollars” short of that target.

Tribe and Sequoia declined to comment. Andreessen Horowitz and Musk did not respond to a request for comment.

Read more here

Emmanuel Macron, president of France, has promised not to immediately force through electoral reform in New Caledonia after an 18-hour visit to the Pacific archipelago aimed at easing a political crisis that sparked deadly rioting. 

The territory, which is strategically important to the French military and is also home to vast nickel reserves, has been riven with unrest since mid-May when Macron’s government pushed ahead with a plan to change the constitution to expand the voting franchise for local elections. 

“I have pledged that this reform won’t be pushed through with force now in the current context,” Macron said at a press conference held around midnight in the New Caledonian capital Nouméa after meetings with local politicians, activist groups, and local executives.

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Boeing’s chief financial officer Brian West on Thursday said the company would burn cash this year, while second quarter jet deliveries would remain muted.

The company’s 737 Max deliveries have fallen as it has slowed production to improve quality following the mid-air blowout of a door panel on a commercial flight in January.

Deliveries to China also are paused because the country’s regulator has concerns over a lithium battery in a cockpit voice recorder, West said, which means second-quarter deliveries could be “possibly a little worse than the first quarter”.

Combined with factory disruptions, the cash is “going to be hard to make up”, he said.

Shares of Boeing dropped 6 per cent in early afternoon trading.

The US Environmental Protection Agency and Department of Justice reached a $310mn settlement with railway company Norfolk Southern after its train carrying hazardous chemicals derailed in Ohio last year and sparked national calls for improvements to railroad safety.

Under the settlement, the company will pay $235mn for clean-up, along with a $15mn civil penalty for alleged violations of the Clean Water Act and funding for environmental monitoring and community programmes. Norfolk Southern did not admit to any wrongdoing.

The train derailment forced the evacuation of up to 2,000 people and killed thousands of fish in nearby waterways, prompting fears of negative long-term health effects among residents. Norfolk Southern has also agreed to pay $600mn to resolve class-action lawsuits from the derailment.

European stocks made modest gains on Thursday as US indices powered to fresh highs thanks to Nvidia’s latest forecast-beating results.

The Stoxx 600 closed 0.1 per cent higher, led by industrials and technology groups. Germany’s Dax made marginal gains and France’s Cac 40 added 0.1 per cent. London’s FTSE 100 fell 0.4 per cent, dragged lower by utilities groups.

In the US, Wall Street’s S&P 500 and the tech-heavy Nasdaq Composite stood 0.2 per cent and 0.7 per cent higher in late-morning trading in New York. Nvidia rose 10.4 per cent.

Sales of new single-family homes in April unexpectedly fell, as high mortgage rates continued to weaken demand for new builds.

Sales decreased to an annualised rate of 634,000 in April from a downwardly revised figure of 665,000 in March, according to the Census Bureau. That missed economists’ forecasts for 679,000 new home sales.

The 30-year fixed rate has remained above 7 per cent for the past five weeks, according to Freddie Mac, creating affordability challenges for would-be buyers. 

The softer demand has meant inventory for new builds rose 7.1 per cent to bring levels to 9.1 months of supply at the current sales rate, while the median sales price decreased to $433,5000 from $439,500 in March.

A 64-year-old man named as Howard Michael Phillips of Harlow has been charged with offences under section 3 of the National Security Act, London’s Metropolitan Police said on Thursday.

“The country to which the charge relates is Russia,” the Met said. Phillips had been remanded in police custody and was expected to appear at Westminster Magistrates’ Court later in the afternoon.

The force said that under an investigation led by officers from its Counter Terrorism Command, addresses had been searched in Hertfordshire and Essex. “Both searches are now complete,” it said.

It said the arrest was not connected to any other recent charges or investigations linked to offences under the Act.

US stock indices rose to fresh all-time highs in early trading on Thursday, boosted by another set of blockbuster results from Nvidia that pushed the chipmaker’s market value above $2.5tn for the first time.

Wall Street’s S&P 500 added 0.5 per cent to 5,340.26 — a new record — in early New York trading. The tech-dominated Nasdaq Composite gained 1.1 per cent.

Shares in Nvidia jumped 8.7 per cent after the company late on Wednesday announced stronger than expected earnings, a liquidity-raising 10-for-1 stock split and bullish forward guidance. 

Its bumper results meant Nvidia’s market cap on Thursday surpassed $2.5tn for the first time, making it larger than Amazon and Tesla combined.

Ralph Lauren beat revenue expectations in the three months to March on improving demand in North America, in a sign that luxury spending in the US may be recovering.

The maker of high-end polo shirts said revenue increased 2 per cent to $1.57bn, surpassing analysts’ expectations for $1.56bn.

But the company remained cautious, forecasting full-year revenue growth in the low single digits, missing analyst expectations. 

Earnings for the quarter came in at $1.38 a share, missing analyst expectations for $1.68.

James Gorman has confirmed he will step down as chair of Morgan Stanley’s board of directors, completing his exit from the Wall Street bank after almost two decades.

Gorman’s departure as chair completes Morgan Stanley’s leadership transition after Ted Pick took over from him as chief executive at the start of 2024.

“Given this successful transition, it’s appropriate to confirm that I will formally step down as chairman of Morgan Stanley on December 31 of this year,” Gorman told shareholders at the bank’s annual meeting on Thursday.

Capital Group and KKR are combining forces to offer wealthy investors access to alternative investments, one of the fastest growing investment sectors, the companies said on Thursday.

Capital, the world’s largest active asset manager with $2.6tn, has a strong distribution network, but does not manage alternative investments, which is KKR’s speciality.

Their first products, blended public and private credit funds, will launch next year. The two firms say this is the start of a broader platform that will make alternatives, which have previously been sold almost exclusively to institutions and the super wealthy, to a broader range of investors.

London’s FTSE 350 Utilities Index fell 6.2 per cent on Thursday, on track for its biggest daily decline since March 2020, with all seven of its constituents down on the day.

National Grid contributed the most to the index decline, losing 10.2 per cent after announcing plans to raise £7bn in fresh capital to fund fresh investments.

Under-pressure water companies Severn Trent, United Utilities and Pennon Group lost 3.8 per cent, 3.7 per cent and 4.9 per cent, respectively. Power company Drax fell 8.2 per cent.

“We see increasing political risk into elections for the [water] sector, with some MPs calling to place the sector into special measures, which include dividend restrictions,” said Jenny Ping, utilities analyst at Citi.

Segantii Capital Management has told investors it will hand back their money, weeks after Hong Kong authorities announced a criminal insider dealing case against the hedge fund and its founder Simon Sadler.

The firm told investors it would return external capital. “We have decided . . . that at this time, it is in the best interests of our investors to return their capital in an orderly manner,” a spokesperson for the firm said.

Segantii, which was founded by Blackpool Football Club owner Simon Sadler, grew into a dominant player in block trading, a corner of finance in which banks offload chunks of shares privately.

The hedge fund has previously said it intends to defend itself vigorously in the Hong Kong case. 

Royal Mail’s owner has failed to publish its full-year results more than four hours after they were expected, further infuriating investors as the lossmaking company faces a takeover bid from its largest shareholder.

“What a shambles,” bemoaned one top investor in International Distribution Services, which was cheduled to publish its financial results at 7am on Thursday.

The delay comes after investors were taken aback by Czech billionaire Daniel Křetínský’s bid for the former state-owned postal service, which has recently struggled to turn a profit as it faced declining demand for letter deliveries and an acrimonious dispute with postal workers.

Royal Mail declined to comment.

Collective wage agreements in the first quarter gave Eurozone workers an average 4.7 per cent annual pay increase, a slight increase on the previous three-month period, according to data published by the European Central Bank on Thursday.

The return of wage growth close to the record pace set in the third quarter of last year is a setback for investors hoping for back-to-back interest rate cuts from the ECB, which is widely expected to slash borrowing costs on June 6. 

The bank has said the timing and amount of rate cuts depends on whether pay rises for workers moderate this year and if those extra costs are absorbed by companies cutting profit margins instead of passing them on with higher prices.  

Ukrainian authorities said Russia launched missile strikes on Kharkiv and surrounding cities on Thursday, killing at least six people and destroying civilian infrastructure.

At least 15 Russian strikes targeted Kharkiv city and region, including the Vivat book publishing building, said governor Oleh Syniehubov. The city’s mayor, Ihor Terekhov, said the attacks hit transport infrastructure and a utility company. Local residents reported hearing several explosions.

President Volodymyr Zelenskyy called the attacks “extremely brutal” and reiterated his calls to western partners for more air defence systems. He also showed his growing frustration over the Biden administration’s ban on using American-supplied weapons to strike military targets inside Russia.

US jobless claims: New applications for unemployment aid are forecast to have decreased to 220,000 in the week ended May 18. A week prior, unemployment claims fell to 222,000 claims. 

US new home sales: Economists have forecast that sales of new homes in the US decreased in April to an annualised pace of 679,000 units, down from 693,000 in March.  

Biden: The US president will hold a press conference with Kenyan President William Ruto ahead of a state dinner. 

Corporate earnings: Ralph Lauren will report before the bell. Intuit and Ross Stores will report after the market closes. 

Fedspeak: Atlanta Fed president Raphael Bostic will deliver remarks on macroeconomics to Stanford University’s MBA class.

The EU has opened an antidumping investigation into imports of lysine from China, its sixth trade case against Beijing in a month. The only EU producer of lysine, an amino acid used in food supplements, complained about cheap Chinese imports.

The two sides are engaged in tit for tat trade skirmishing. The biggest cases are an EU investigation into subsidised electric vehicle imports and a Chinese probe into dumping of brandy by the EU.

Big share price moves in Europe today include UK retail investment platform Hargreaves Lansdown, UK petcare group Pets At Home and London-listed commercial property developer Great Portland Estates: 

• Hargreaves Lansdown: Shares in the UK investment platform were up 10 per cent by mid-morning, having risen as much as 16 per cent, in the first session after the company’s board unanimously rejected a £4.67bn takeover approach from a group of private equity firms, including CVC Capital Partners and a subsidiary of Abu Dhabi’s sovereign wealth fund.
  

  

• Pets At Home: Shares in the UK-based petcare group shed 4 per cent after the competition watchdog on Thursday launched a probe of the sector over concerns about high prices and a lack of choice for pet owners.

• Great Portland Estates: Shares in the commercial property developer dipped 3.3 per cent after the FTSE 250-listed group announced plans to raise £350mn in a fully underwritten rights issue to pursue “compelling new investment opportunities” as the commercial property market bottoms out.

The EU fined Toblerone-maker Mondelez International €337.5mn for infringing competition rules by restricting the sale of biscuits, chocolate and coffee between EU member states. 

Seamless trade across EU27 countries would naturally push down prices, but Mondelez “artificially partitioned the internal market,” the EU executive found. 

The global confectionery group, whose brands also include Oreo and Cadbury, engaged in 22 anti-competitive agreements between 2012 and 2019 by limiting where and to whom its wholesalers could resell its products, the commission said.

It also found that Mondelez abused its dominant position in the chocolate bars market by ceasing supply of its products to German and Dutch wholesalers to prevent cross-border sales to countries where prices were higher.

Growth in UK business activity unexpectedly dropped to a two-month low in May, according to a closely watched survey that will provide disappointing news for the prime minister ahead of the election on July 4.

The S&P Global / Cips flash UK composite output index dropped to 52.8 in May, from 54.1 in April. This was lower than the 54 forecast by economists but well above the 50 mark that separates expansion from contraction.

Chris Williamson of S&P Global Market Intelligence said the data signalled a further expansion of UK business activity, “with an encouraging revival of manufacturing accompanied by sustained, but slower, service sector growth.”

Net migration to the UK slowed to 685,000 in 2023, with work replacing study as the main motivation for people to come to the country, but inflows remained well above historical averages.

Official data released on Thursday also showed the 2022 peak in net immigration was higher than previously thought, at 764,000, and that net inflows in the year to June 2023 were also 68,000 higher than previous estimates, at 740,000.

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The Eurozone economy showed more signs of recovery as companies’ orders and hiring picked up at the fastest pace for a year and price pressures eased, according to a closely watched survey.

The flash composite purchasing managers’ index for the Eurozone, tracked by policymakers as an early gauge of economic fortunes, rose to 52.3 in April, up from 51.7 a month earlier. Economists polled by Reuters had forecast a reading of 52. 

Faster growth in services offset a milder but continued downturn in manufacturing to lift S&P Global’s monthly gauge of corporate activity above the 50 mark, which separates expansion from contraction, for the third consecutive month.

German companies reported stronger growth than forecast, while French companies said activity had unexpectedly contracted.

A court in Russia has ordered a senior general to be held in pre-trial detention on corruption charges amid President Vladimir Putin’s shake-up of his security team.

Vadim Shamarin, head of the Russian general staff’s communications department, faces up to 15 years in prison for allegedly receiving a “particularly large bribe”, the court said on Thursday.

Shamarin is the fourth senior defence figure arrested in the past month. Putin appointed economist Andrei Belousov as defence minister last week, a move widely interpreted as signalling the Kremlin’s desire to crack down on graft in the sector.

European stocks and US futures rose early on Thursday, thanks in part to another set of blockbuster quarterly results from chipmaker Nvidia.

Europe’s region-wide Stoxx 600 added 0.3 per cent in early trading. Germany’s Dax and France’s Cac 40 both gained 0.4 per cent.

Contracts tracking Wall Street’s S&P 500 and the tech-heavy Nasdaq 100 rose 0.5 per cent and 0.8 per cent, respectively, ahead of the New York open.

Sentiment was boosted by Nvidia, which added 6 per cent in pre-market trading after results late on Wednesday showed its revenue soared 262 per cent in the past quarter, exceeding analysts’ lofty expectations.

Wizz Air has reported an annual profit for the first time since the Covid pandemic after carrying a record number of passengers, but it does not expect further growth this year because of aircraft shortages.

The ultra-low-cost airline on Thursday reported a net profit of €365.9mn for the 12 months to end of March, up from a €535mn loss a year earlier.

Chief executive József Váradi said “current trading indicators are positive”, but repeated previous guidance that growth would be flat over the next year as Wizz had been forced to ground dozens of planes to enable its Pratt & Whitney engines to be inspected. 

Nationwide posted a fall in annual profits as the UK’s largest mutual set aside millions to cover potential compensation costs linked to customer complaints.

The building society posted annual statutory profits of £1.8bn in the year to April 4, compared with £2.3bn the previous year, as it set aside £127mn to cover for liabilities and charges.

Nationwide said £24mn of the provision would be used to cover potential remediation costs linked to “complaints from customers in relation to past sales or ongoing administration” following enquiries from regulators and the Financial Ombudsman Service, while £99mn would be used to cover litigation costs linked to its “discussions” with various authorities.

Nationwide is expected to complete its £2.9bn takeover of Virgin Money by the end of the year.

The leaders of China, Japan and South Korea will hold a trilateral summit for the first time since late 2019 as they seek to improve economic ties and ease tensions in the Indo-Pacific region.

According to South Korea’s presidential office, Japanese prime minister Fumio Kishida and China’s premier Li Qiang will each travel to Seoul for bilateral talks with South Korean president Yoon Suk Yeol on Sunday, which will be followed by a trilateral meeting on Monday.

People with knowledge of the discussions said the summit will probably focus on economic and trade issues amid tensions with Beijing on the political and security fronts.

National Grid has announced a £7bn rights issue to help fund around £60bn of investment in the UK and US over the coming the decade. 

The FTSE 100 company is also planning to sell off its liquefied natural gas import terminal in Kent, England, and its US onshore renewables business, National Grid Renewables, in order to focus on electricity and gas networks. 

John Pettigrew, chief executive, said the steps marked a “defining moment” for the company, adding that by the end of the decade it “is expected to support over 60,000 more jobs”.

About 52 per cent of the planned investment is due to be spent in the UK and 48 per cent in the US.

UK investment platform AJ Bell said assets have reached a record £80.3bn as the number of customers using the site crossed half a million.

The company said assets under administration jumped by more than a tenth over the six months to the end of March, driven by net customer inflows of £2.9bn and positive market movements.

Some 27,000 customers signed up to use the platform, which offers pensions and investments, boosting its customer base to 503,000.

Profit before tax increased to £61.4mn, up 47 per cent on the same period a year ago. 

The UK competition regulator is pressing ahead with a full investigation of the veterinary sector, which could result in the break-up or sale of businesses in a bid to make the market more competitive.

The Competition and Markets Authority said it was opening the probe over concerns about high prices and a lack of choice for consumers. Beyond breaking up the dominant groups in the sector, the CMA could impose maximum prescription fees for customers.

The decision to launch a full investigation comes after the CMA received an unprecedented response to its consultation. Around 56,000 pet owners and people in the veterinary sector wrote to the watchdog over its concerns.

London office developer Great Portland Estates will seek to raise £350mn in a rights issue to pursue “compelling new investment opportunities” as the commercial property market bottoms out.

The fundraise came despite the company announcing that the value of its £2.3bn portfolio of mostly London office and retail properties had dropped 12 per cent in the year to March.

Chief executive Toby Courtauld said: “We believe values are now at or around their cyclical trough and consequently, we turned net buyer during the year for the first time since 2013.”

Hong Kong and Chinese equities sold off on Thursday, weighed down by the technology sector, while Japanese and South Korean markets edged higher.

The Hang Seng index shed 1.8 per cent, leading losses in Asia. Declines were greater in mainland Chinese tech companies, with the Hang Seng Tech index falling 2 per cent. Tech group NetEase was among the worst performers as it lost 5.9 per cent ahead of its first-quarter earnings announcement.

The mainland’s CSI 300 dropped 1.3 per cent. Japan’s Topix rose 0.7 per cent, with technology groups that have exposure to the semiconductor industry among the top gainers.

G7: Finance ministers and central bank governors meeting in the Italian coastal city of Stresa.

Economic data: EU flash consumer confidence indicator for May will be published. Eurozone, France, Germany, Italy and the UK’s flash May manufacturing and services PMI survey data will be published by S&P Global.

UK Covid inquiry: Cabinet secretary Simon Case gives evidence.

Labour shortlist: Details to be announced for candidate to stand in the North Islington seat of former leader of the opposition Jeremy Corbyn, who was blocked from standing for the party last year

Corporate earnings: AJ Bell, Aviva, Bloomsbury Publishing, Hill & Smith, International Distributions Services, National Grid, Nationwide Building Society, Ralph Lauren, Rolls-Royce, Tate & Lyle and Wizz Air are all expected to deliver updates.

BHP shares fell sharply on Thursday after its latest all-share offer for Anglo American opened the door to a further week of talks over a potential takeover.

The Australian miner’s third “final” and conditional offer was pitched at £38.6bn. Anglo American rejected the approach over concerns over the structure of a potential takeover but agreed to engage with BHP for a further week.

RBC Capital Markets said the new offer was “well above the top-range of what we see as being value accretive” and now embedded too much synergy and execution risk into the takeover. 

Shares in BHP fell almost 3 per on Australian markets, altering the value of the bid for Anglo.

Stocks in Hong Kong led losses in Asia as Chinese companies listed in the city sold off.

The benchmark Hang Seng index shed 1.4 per cent, while the Hang Seng Tech index dropped 1.4 per cent. GDS Holdings, which builds and operates data centres in mainland China, led losses with a 14 per cent drop after reporting first-quarter results.

Among Asian currencies, the Malaysian ringgit weakened the most against the dollar, at 0.5 per cent, and the People’s Bank of China set its daily fixing point around which the renminbi can be traded at Rmb7.1098 a dollar, its weakest level since January.

China has started military exercises around Taiwan three days after President Lai Ching-te took office.

“This is a harsh punishment for. . . separatist plots for ‘independence’ and a serious warning against outside interference and provocations,” the People’s Liberation Army said in a statement.

The PLA said the army, navy, air force and rocket force would practise seizing control of the battlefield, striking key targets and operating close to Taiwan’s main island on Thursday and Friday.

State media said manoeuvres would take place in the Taiwan Strait as well as north, south and east of Taiwan and around Taipei-controlled islands off the Chinese coast. 

Events: Taiwan Semiconductor Manufacturing hosts a tech symposium at its headquarters in Hsinchu to discuss its latest products and expansion plans. The governor of the Reserve Bank of New Zealand delivers remarks in Queenstown following the central bank’s decision yesterday to hold interest rates.

Economic data: Singapore announces final first-quarter gross domestic product figures, Thailand releases April trade data and India has its May purchasing managers’ indices. Hong Kong and Singapore publish their April consumer price indices.

Corporate updates: Lenovo, Xiaomi, NetEase and Meituan report earnings.

Nikki Haley, the former South Carolina governor, has backed Donald Trump in the race for the White House after bashing him repeatedly as unfit for the office during their bitter Republican nomination fight earlier in the year.

Haley’s endorsement is the latest sign that traditional conservative Republicans are falling in line with Trump’s candidacy even after failing to stop his ascent to the party’s nomination against Joe Biden.

In Haley’s case, the support comes despite Trump’s vitriolic and humiliating attacks on her throughout the campaign, including his use of “Birdbrain” as a derogatory nickname against her.

“Trump has not been perfect on . . . policies,” Haley said. “But Biden has been a catastrophe. So I will be voting for Trump”.

A US district judge in Texas has ruled ExxonMobil’s lawsuit over a climate-focused shareholder resolution will be allowed to proceed against Arjuna Capital, a registered investment adviser, while dismissing a separate claim against European group Follow This.

Exxon filed a lawsuit against the two climate-focused investor groups earlier this year to block a resolution they filed demanding it do more to cut its greenhouse gas emissions. The pair withdrew their resolution in response, asking the judge to dismiss the lawsuit.

But in an opinion issued Wednesday, district Judge Mark Pittman said the case against Arjuna could continue, arguing it was “not absolutely clear” the pair would not file future resolutions, which he argued were “vexing for corporations”. He said Exxon could not pursue the case against Netherlands-based Follow This because of jurisdiction issues.

News Corp has struck a deal with OpenAI to allow its news content to be used by the AI developer to train its models and improve its consumer services.

OpenAI will receive access to current and archived content from publications including The Wall Street Journal, Barron’s and New York Post in the US and The Times and The Sun in the UK. A number of Australian titles will also be included. 

No financial terms were given when the deal was announced on Wednesday, although the Wall Street Journal, one of the titles included in the deal, reported that it could be worth more than £250mn to News Corp over five years.

Robert Thomson, chief executive of News Corp, said that OpenAI’s Sam Altman understood “the commercial and social significance of journalists and journalism”.

In April, the Financial Times signed a content licensing deal with OpenAI. 

US stocks fell from record highs as traders assessed minutes from the Federal Reserve’s most recent meeting and prepared for Nvidia’s earnings results.

The S&P 500 on Wednesday closed 0.3 per cent below the previous session’s record high, with about two-thirds of the benchmark index’s members declining. The tech-heavy Nasdaq Composite fell 0.2 per cent.

Early declines for Nvidia moderated in the afternoon, leaving the semiconductor group down 0.5 per cent at Wall Street’s closing bell and ahead of its first-quarter earnings report.

The small-cap focused Russell 2000 fell 0.9 per cent.

Treasury prices fell, pushing the yield on the two-year note up 0.04 percentage points to 4.87 per cent.