Buffett Steps Down, US Job Growth Surpasses Expectations, and Global Markets React to Tariffs and Inflation

Today's expected range for the Canadian Dollar against the major currencies:

US Dollar        1.3680-1.3910

Euro                 1.5540-1.5770

Sterling            1.8260-1.8500

WTI Oil (opening level) $57.55

The CAD/USD is opening at 1.3794 ( 0.7250 )

Headlines

·     Warren Buffett will step down as chairman and CEO of Berkshire Hathaway at year-end after six decades, with Greg Abel, vice chairman for non-insurance operations, taking charge of a conglomerate that has grown aggressively under Buffett's leadership into a business valued at more than $1.16 trillion, and which generated $47.4 billion of annual operating earnings in 2024.

·    Trump's 25% tariffs on key auto parts began on Saturday. He said he is open to reducing tariffs on China, as high levies have disrupted business between the two economies. However, he intends to retain some tariffs to encourage production in the US.

·    The U.S. economy added 177,000 jobs in April 2025, exceeding market expectations of 130,000, despite slowing from March's revised 185,000. This aligns with the 12-month average of 152,000 amid uncertainty over President Trump's tariff policies.

·    Average hourly earnings for US private nonfarm payrolls increased by 0.2% to $36.06 in April 2025, below the 0.3% forecast. Production and nonsupervisory employees' earnings rose by 0.3% to $31.06. Over 12 months, earnings grew by 3.8%, slightly below the 3.9% estimate.

·    Euro Area inflation remained at 2.2% in April 2025, above the 2.1% forecast and ECB's 2.0% target. Energy prices fell, but services and food inflation increased. Core inflation rose to 2.7%, above the 2.5% forecast. Monthly consumer prices rose by 0.6%, matching March.

Key Points

·    Equities: US job strength; S&P winning streak; Apple tariff concerns; EU tech rally; UK FTSE record gain

·    Volatility: VIX declining; Fed meeting; earnings season; cautious futures

·    Digital assets: Bitcoin steady ~$95k; ETF institutional buying strong; crypto stocks bullish

·    Fixed Income: US treasury yields jump after strong April jobs report Friday

·    Currencies: USDCNH the focus as it slips to multi-month lows despite strong USD close to last week.

·    Commodities: Crude tanks as OPEC+ hikes production into a weakening economy