US Restricts Ethane Exports to China; China Tightens Rare Earth Magnet Controls
Key Takeaways
- US now requires licenses for ethane exports to China, according to Energy Transfer.
- China increases scrutiny of rare earth magnets, preventing unauthorized exports amid shortages.
- EU Trade Chief warns Europe's industry faces an “alarming” rare-earth situation.
- Sweden's inflation fell to 2.5% in May, strengthening the case for rate cuts.
- P&G to cut up to 7,000 jobs due to tariff and consumer uncertainty pressure.
Top Stories
US requires licenses for ethane exports to China.
On June 4, 2025, Energy Transfer reported that the US government is now requiring licenses to export ethane to China.
China increases scrutiny of rare earth magnets.
On June 4, 2025, China increased scrutiny of rare earth magnets with a new tracking system. The Chinese government has also initiated a campaign to prevent the unauthorized export of rare earths, potentially exacerbating existing shortages.
EU Trade Chief: Rare-earth situation is “alarming”.
On June 4, 2025, the EU Trade Chief stated that Europe’s industry faces an “alarming” rare-earth situation.
Sweden's inflation falls to 2.5% in May.
On June 5, 2025, Statistics Sweden published a preliminary estimate indicating that Sweden’s underlying inflation rate fell to a five-month low of 2.5% in May, down from 3.1% in April. This strengthens the case for the Riksbank to reduce interest rates later this month.
P&G to cut up to 7,000 jobs.
On June 5, 2025, it was reported that Pampers maker Procter & Gamble will cut up to 7,000 jobs due to tariff and consumer uncertainty pressure.
Central Bank Actions
OECD supports SARB's lower inflation target.
On June 5, 2025, the OECD supported the SARB's push to lower South Africa’s inflation target, suggesting that focusing on keeping inflation near a 3% midpoint could better support economic growth and international competitiveness.
Bank of England uses AI to forecast inflation.
On June 5, 2025, it was reported that the Bank of England is experimenting with artificial intelligence to help forecast inflation and hone its communications, according to rate-setter Megan Greene. The bank found that it can produce useful short-term predictions about the direction of consumer prices.
Emerging Trends
UK crypto ownership surges 33%; breakout year?
Published on June 4, 2025, an article reports that crypto ownership surged 33% in the UK, suggesting 2025 could be digital assets' breakout year.
Market Overview
Japan's 30-year bonds rise after weak auction.
Japan's 30-year bonds rose, published on June 5, 2025, as a weak auction added to pressure to curtail issuance.
Business News
GlobalFoundries invests $16B to boost US chip production.
Qualcomm diversifies beyond declining Apple business.
Financial Health
British Business Bank reaches £5bn in guarantees.
Published on June 4, 2025, the British Business Bank has reached £5bn in structured guarantee programmes.
Policy Watch
Musk criticizes budget bill, cites $36T debt.
On June 5, 2025, Elon Musk criticized a budget bill as a "disgusting abomination," urging followers to pressure lawmakers to reject it due to concerns about increasing the federal debt, which is currently at $36 trillion.
Tax Foundation defends CBO analysis of House bill.
On June 5, 2025, Erica York from the Tax Foundation defended the Congressional Budget Office's analysis of the House bill, countering claims from the Trump administration about partisanship and ignored economic growth projections.