Global Flashpoints: Trade Truces, Tech Tensions, Protests, and Corporate Shakeups

11th June 2025

China and the U.S. reached a cautious trade truce, offering temporary market stability but few concrete outcomes. Elon Musk admitted his recent posts about Donald Trump went too far, hinting at a possible reconciliation after a public fallout. Protests erupted across U.S. cities over Trump’s immigration crackdown, prompting a curfew in Los Angeles and criticism over the use of military force. Meanwhile, Nissan supplier Marelli filed for Chapter 11 bankruptcy in the U.S. but secured $1.1 billion in financing to support its restructuring. Find out more as you dive in.

China–US Trade Truce: A Pause, Not a Peace

The latest trade truce between China and the U.S. may have offered a glimmer of hope to investors—but let’s be honest, it hasn’t exactly cleared the fog. After two days of talks in London, both sides pledged to revive last month’s Geneva agreement and lift China’s export restrictions on rare earths, a longtime sticking point. But while that sounds promising, the lack of concrete detail has left markets cautiously optimistic—and still on edge.

Market reactions told their own story. Chinese stocks inched higher to near three-week highs, while U.S. futures were slightly lower. The yuan held steady and the dollar ticked up, signaling that investors see this truce more as a pause than a breakthrough. “This is positive news to the market. At least now there’s a bottom line that neither side is willing to cross,” said Mark Dong, co-founder of Minority Asset Management in Hong Kong.

That sense of pragmatism—rather than progress—is what analysts are clinging to. “For now, as long as the headlines of talks between the two parties remain constructive, risk assets should remain supported,” noted Chris Weston of Pepperstone. Still, the muted market reaction suggests investors had already priced in this outcome, and that they were quietly hoping for more.

The backdrop? Trump’s dramatic “Liberation Day” tariff move in April sent markets spiraling on fears of recession. But as he walked back most of those tariffs, sentiment rebounded. The S&P 500 has since risen 6.5% and is flirting with record highs. Meanwhile, Chinese markets—dragged by broader economic concerns—have only just recovered their footing. For now, the trade truce offers stability, but without clear next steps, it’s still anyone’s guess where things go from here. Reuters

Musk Regrets Going Too Far with Trump Posts

Elon Musk admitted on Wednesday that some of his recent social media posts about President Donald Trump may have crossed a line. The Tesla and SpaceX CEO said he regretted comments made last week, calling them “too far,” after a highly public online clash that saw Trump declare their relationship officially over. At the center of the spat was Musk’s harsh criticism of Trump’s sweeping tax and spending bill, which he had labeled a “disgusting abomination.”

In the days since, Musk has deleted several of his more pointed remarks, including one suggesting support for Trump’s impeachment. Sources close to him say the tension is beginning to ease, and Musk may be open to mending ties. “I regret some of my posts about President Donald Trump last week,” Musk wrote on X, his own social platform. Investors seemed to welcome the olive branch—Tesla shares in Frankfurt climbed nearly 3% following the post.

The fallout comes after a once-strong alliance between the two high-profile figures. Musk had been a major financial backer of Trump’s 2024 campaign, reportedly contributing nearly $300 million and even taking a leadership role in an initiative to trim federal spending and reduce the workforce. That role ended last month, shortly after Musk blasted the administration’s marquee bill as counterproductive and costly.

Despite their public split, both men have left the door slightly ajar. Trump said he wouldn’t oppose a phone call from Musk and even praised the SpaceX-backed Starlink service, which continues to support government operations. Musk, in turn, reacted with a heart emoji to a video of Trump’s latest remarks. While the relationship remains strained, these gestures suggest the possibility of reconciliation may not be entirely off the table. Bloomberg 

U.S. Cities Brace for Protests as Parts of Los Angeles Enter Curfew

Cities across the U.S. are bracing for more protests as tensions mount over President Donald Trump’s latest immigration crackdown. In Los Angeles, a curfew was imposed across parts of downtown following five days of unrest. While most demonstrations have remained peaceful, overnight looting and scattered violence prompted city officials to act. Mayor Karen Bass emphasized that local police were capable of managing the protests but said the curfew—covering a one-square-mile area—was necessary to maintain order after dark.

The situation escalated sharply after Trump ordered the deployment of 4,000 National Guard troops and hundreds of U.S. Marines to Los Angeles, drawing widespread criticism from Democratic leaders. California Governor Gavin Newsom accused the president of prioritizing “theatrics over public safety,” warning that such actions risk inflaming an already volatile situation. “He chose escalation. He chose more force. … Democracy is under assault,” Newsom said in a televised address. The state has since filed a lawsuit against the Trump administration, seeking to block the military deployment.

In response, Trump doubled down, using a speech at Fort Bragg to defend his actions. “Generations of army heroes did not shed their blood on distant shores only to watch our country be destroyed by invasion and third-world lawlessness,” he told troops. His remarks underscore the administration’s hardline stance on immigration, which helped propel his re-election bid and now serves as a backdrop to the unfolding unrest. Trump also suggested Governor Newsom should be arrested, intensifying the political standoff.

Meanwhile, clashes continue to unfold in cities like Austin, where protesters and police have already come to blows. As the number of arrests in Los Angeles surged past 190 on Tuesday alone, critics warned of a growing national crisis—one that fuses a controversial immigration policy with heavy-handed responses to dissent. Democratic lawmakers are now voicing concern that military involvement in domestic protests sets a troubling precedent, as the nation grapples with questions around civil liberties, public safety, and federal overreach. Bloomberg 

Nissan Supplier Marelli Files for Chapter 11, Secures $1.1 Billion Lifeline

Auto parts maker Marelli, a key supplier to Nissan, has filed for Chapter 11 bankruptcy protection in the U.S., following months of tense negotiations with creditors. The company, which specializes in car interiors and lighting, said it’s secured $1.1 billion in fresh financing to help steer through the restructuring process—an important step as it aims to keep operations running without disruption.

Marelli, owned by private equity firm KKR, stated that roughly 80% of its lenders have already signed on to support the restructuring. A major highlight: all of Marelli’s secured debt will be wiped out under the plan. The company also revealed that the new lenders backing the $1.1 billion package are poised to take over the business once it emerges from Chapter 11—unless another bidder comes forward during a 45-day “overbid” window.

Nissan, which has been undergoing its own turnaround efforts, said it’s keeping a close eye on the situation but appreciates Marelli’s moves to avoid supply disruptions. “We appreciate Marelli's efforts to minimise operational disruption,” the automaker noted, pledging to coordinate with other customers and monitor the supply chain closely.

Marelli was formed in 2019 through a merger of Italy’s Magneti Marelli and Japan’s Calsonic Kansei. Despite exploring potential rescue plans—including a buyout proposal by India’s Motherson Group—conflicts between domestic and international creditors complicated talks. For now, Marelli is leaning on its financial lifeline as it looks to reset, restructure, and rebound. Yahoo. Finance 

Minor Headlines 

• Bitcoin Gains Ground as More Companies Turn to It as an Inflation Hedge. Reuters 

• JPMorgan Upgrades Yuan Outlook Amid Lower Tariff Risks and De-Dollarisation Momentum. Bloomberg 

• Qantas to Shut Down Jetstar Asia, Cutting 500 Jobs in Major Restructuring. Bloomberg 

• Starbucks CEO Says China Stake Drawing Strong Investor Interest. Financial Times 

• UniCredit CEO: Only a 20% Chance of Pursuing Banco BPM Acquisition. Reuters

• Polestar Resumes Global Growth Plans, Starting with France. Financial Times 

• Sam Altman Predicts AI Will Deliver Groundbreaking Insights in the Coming Year. TechCrunch 

• AirAsia Nears Deal to Purchase Over 100 Airbus A220 Jets. Reuters 

Gen Z Word of the Day 

 Snack

A snack is a person that you find attractive.