Mexico’s annual inflation rate accelerated more than expected in May, surpassing the top of the central bank’s target zone and adding to the monetary policy conundrum in the second-largest economy in Latin America.

Consumer prices rose 4.42% in annual terms, data released on Monday by the national statistics agency INEGI showed, up from 3.93% in April and above the 4.38% forecast by economists in a Reuters poll.

This is the biggest annual inflation number since the beginning of the year and will be interpreted as increasing price pressures at a time when the Bank of Mexico (Banxico) has been hesitantly lowering interest rates.

The central bank has a 3% target for inflation, with a one-point margin on either side of the target.

That reading put inflation above that line mark in May, further clouding the outlook for the interest rate trajectory ahead.

Banxico’s rate-cutting cycle is being tested

Banxico has cut its benchmark interest rate by 50 basis points at each of the last three policy meetings, bringing it down to 8.5% in May, its lowest level since 2022.

Policymakers at the time indicated that there was potential for additional cuts, citing predictions of a gradual disinflationary trend.

The next monetary policy meeting, scheduled for June 26, will now take place under altered circumstances.

With inflation rising, the bank faces a more complicated predicament.

While recent easing has attempted to boost economic growth, persistent inflation may require policymakers to reassess the pace and extent of future rate cuts.

Although the current inflation estimate does not rule out further easing, it raises the possibility that Banxico will take a more cautious approach.

Market analysts are divided on whether the bank will continue with its current rate of reduction, shift to smaller steps, or pause entirely.

Non-core prices drive the headline upside surprise

According to the data of INEGI, the rise in inflation was particularly driven by advances in non-core prices, which consist of components with stronger volatility, such as energy and some food items.

The headline consumer price index was up 0.28% in May, a tick above expectations.

At the same time, the so-called core inflation index, which strips out volatile categories and is key for central bank watchers, increased 0.30% month-on-month too, again just a touch above economists’ expectations.

This continued strength in underlying prices indicates that inflationary pressures are not confined to external or transient shocks.

Such a trend may have implications for long-term inflation expectations and the path of Banxico’s stance.

Investors and analysts recalibrate expectations

The recovery in inflation has spurred disagreement among economists about the most likely path forward.

Some suggest that Banxico should suspend its easing cycle to avoid escalating inflationary pressures, while others believe the present trend is not significant enough to undermine plans for further, albeit smaller, rate reduction.

The outlook now depends on how inflation changes in the following months. If price hikes stay high or show symptoms of entrenchment, Banxico may be obliged to postpone further easing or slow the pace of rate decreases to 25 basis points in the following meetings.

However, if inflation moderates, the central bank may continue to ease monetary conditions.

June decision looms as key inflection point

With inflation approaching the limits of Banxico’s tolerance band, the June 26 decision is shaping up to be a watershed moment.

Policymakers must strike a balance between keeping inflation under control and sustaining an economy that is nonetheless vulnerable to both internal and global headwinds.

For the time being, the recent data remind us that Mexico’s inflation trajectory remains erratic, and Banxico’s monetary policy roadmap may need to be adjusted accordingly.

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JBS started trading this Monday (9) its Brazilian Depositary Receipts (BDRs), B3 share index, as a part of its dual listing process.

In Brasília, by early afternoon, the JBSS32 BDRs were up 1.02%, at R$ 78.86.

According to local media InfoMoney, this change is linked to the corporate restructuring finalised yesterday, when JBS shares were merged into JBS Participações.

JBS’s common shares initially traded under JBSS3 have ceased to be traded on B3, as a result of the aforementioned transition.

Rather, Brazilian investors are now able to access the company by means of BDRs (bônus de subscrição), which are rooted in shares issued by JBS NV, a company currently based in the Netherlands.

The final JBS NV shares will list on the New York Stock Exchange (NYSE) on Wednesday (June 12) with the symbol “JBS.”

Access and conversion period for investors

Despite the structural transformation, trading in JBSS32 BDRs allows Brazilian investors to maintain exposure to JBS’s stock.

The corporation has also announced a fee-free conversion window for BDRs to NYSE-listed shares.

This period, which runs from June 11 to July 11, aims to smooth investor transitions and allow integration with the company’s foreign activities.

The Brazilian Securities and Exchange Commission (CVM) approved the listing of BDRs on May 30.

The procedure ensures that JBS meets local regulatory norms while also enabling its new cross-border setup.

The new structure is part of a larger drive to improve governance, increase capital market access, and more appropriately reflect the company’s global presence.

Global strategy aligned with operations

JBS is one of the largest food producers in the world, and it operates over 250 facilities across 17 countries.

It has over 300,000 clients in the meat sector.

With a corporate governance structure better aligned to its many international operations, the company is doing away with its existing legal and listing structure.

The entity would have BDRs on B3 and class A shares on the NYSE, in what would be a dual listing with the intent of increasing the depth and liquidity of capital markets open to JBS and raising its visibility worldwide.

As such, the company believes this new structure will provide greater strategic flexibility to execute its business growth strategy and allocate its capital more efficiently.

BDRs are a key investment channel

Following the delisting of JBSS3 shares, BDRs are currently the primary vehicle for Brazilian investors looking to invest in JBS.

These instruments replicate the performance of the company’s worldwide shares, and dividends will be disbursed to BDR holders following existing procedures.

BDRs are often employed by global corporations to maintain a presence in Brazil while avoiding a full local listing.

They provide a simple option for local investors to have access to multinational companies using the B3 exchange’s familiar infrastructure.

Market perspective and outlook

Market analysts perceive the transition positively. Genial Investimentos, for example, sees the restructuring as a chance for possible value gains and suggests acquiring JBS BDRs.

The firm believes that the company’s visibility and access to funding will improve from its exposure to U.S. markets.

As the NYSE listing approaches, the focus will shift to how JBS manages investor interest in a new regulatory and financial environment.

The success of its dual listing could serve as a model for other Brazilian companies looking to expand their investor base and better interact with global markets.

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Apple Inc (NASDAQ: AAPL) is inching down on Monday after the tech titan delayed its planned, major Siri upgrade to next year at the WWDC 2025.

Worldwide Developers Conference is Apple’s annual event that often unveils software, developer tools, and platforms for its products.

While the Siri delay sure disappointed investors today, the multinational’s WWDC 2025 was not entirely devoid of AI announcements. Here are three key ones it made on Monday.

Visual Intelligence + ChatGPT now on-screen

Apple upgraded Visual Intelligence, which lets users point their camera at live or on-screen content and tap on “Ask” button to handle queries via ChatGPT.

For example, spot a lamp, ask “find similar lamps online,” and ChatGPT helps you find it on apps like Etsy.

Additionally, the tool auto-detects dates and times in text, allowing one-tap calendar entries.

This marks a major step in integrating generative AI into everyday iPhone workflows, grounded in on-device processing for privacy.

Image Playground powered by OpenAI

Apple’s iOS 26 introduces an enhanced Image Playground, in partnership with OpenAI.

Users can transform contact posters into creative styles, like water colours or futuristic, for both calls and messages.

The titan emphasized that no private data will be shared with OpenAI without user consent.

The feature also opens to third-party developers via API, though it’s exclusive to iPhone devices with Apple Intelligence enabled and depends on updated iOS and supported languages.

Foundation models framework for on-device AI

Apple unveiled a new Foundation models framework to let third-party apps tap powerful models directly on-device, removing reliance on the cloud.

This enables advanced capabilities across Siri, photo editing, translation, and new features like a Watch “Workout Buddy”. It also powers live voice and text translations in calls and core apps.

The shift towards local AI reinforces Apple’s focus on privacy and processor efficiency, even as a full Siri redesign remains forthcoming.

What else did Apple announce at the WWDC 2025?

Investors should note that the firm’s WWDC 2025 was not all about artificial intelligence, though.

Beyond AI, the Nasdaq-listed firm unveiled iOS 26 at the annual conference, featuring its first major UI redesign in about 12 years.

Dubbed “Liquid Glass”, the vision-inspired look brings translucent overlays, fluid animations, and depth effects, ushering a fresh, unified design language.  

Is Apple stock worth buying at current levels?

Tariff headwinds have weighed rather heavily on Apple stock this year. At writing, it’s down some 18% versus its year-to-date high.

Still, analysts remain bullish on AAPL shares for the back half of 2025. Consensus rating on the iPhone maker currently sits at “overweight” with the mean target of about $228, indicating potential upside of some 14% from current levels.

Note that Apple stock does pay a dividend as well.

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European stock markets started Tuesday’s session with a mixed and somewhat cautious tone, as investors kept a close watch on ongoing trade talks between the United States and China in London.

While major indices showed slight variations, a notable feature was the broad decline in European defense stocks, potentially linked to the discussions around critical mineral exports.

Meanwhile, fresh UK labor market data provided new insights into the country’s economic health.

Approximately ten minutes after the opening bell, the pan-European Stoxx 600 index was trading flat, indicating a general lack of strong directional conviction across the continent.

Looking at individual national markets, London’s FTSE 100 was up by a respectable 0.4%. In contrast, Germany’s DAX index was down by 0.2%, and France’s CAC 40 was last seen marginally higher.

A significant area of weakness this morning was the European defense sector. The regional Stoxx Aerospace and Defense index extended its recent losses, trading 0.8% lower.

This puts the index on track for its third consecutive day of declines. This downturn comes as investors monitor the US-China trade talks, which are set to continue in London on Tuesday.

A central point of these discussions revolves around critical minerals, on which China imposed export restrictions in April in response to US tariffs on Chinese exports.

These rare earth minerals are vital for the production of weaponry and other advanced defense technologies, making any developments in their trade a key concern for the sector.

Illustrating this pressure, shares in German defense giant Rheinmetall were last seen trading 3.4% lower.

Other German defense-related companies, Renk and Hensoldt, experienced even sharper falls, down 8% and 3.1%, respectively.

Currency and UK labor market: pound slips, job openings fall, wage growth cools

In currency markets, the British pound was down 0.5% against the US dollar on Tuesday morning, trading at around $1.35.

Despite this dip, sterling has still gained a notable 7.8% against the greenback so far this year.

New data from the UK’s Office for National Statistics (ONS) this morning provided a detailed snapshot of the labor market.

Job vacancies in the UK fell to 736,000 between March and May, a decline of 63,000 openings, or 7.9%, from the previous three-month period.

This marked the 35th consecutive decline in job openings, signaling a continued cooling in hiring demand.

Meanwhile, average earnings, including bonuses, saw a year-on-year increase of 5.3% for the period between February and April.

This indicates that while wage growth remains, it has steadily cooled since spiking to 6.1% in December.

Britain’s unemployment rate rose slightly to 4.6% in the three months to April, a figure that was in line with economist expectations.

In the previous three-month window to March, UK unemployment had stood at 4.5%.

The ONS data also showed that the UK’s economic inactivity rate—an estimate of those aged 16 to 64 who are out of work and either not seeking employment or unable to start work imminently—rose to 21.3% in the three months to April.

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Rolls-Royce has been selected as the preferred bidder to build the UK’s first fleet of mini nuclear power stations, in a significant step aimed at securing Britain’s energy future and reviving domestic nuclear capabilities.

The announcement, made on Tuesday by the government’s publicly owned Great British Energy, follows a lengthy selection process and positions the FTSE 100-listed engineering firm ahead of American rivals GE-Hitachi and Holtec International.

Rolls Royce share price jumped by more than 2% in early trading on Tuesday.

The company will now lead the small modular reactor (SMR) programme, with £2.5 billion pledged through 2029 and further billions expected as construction advances.

This move comes as part of a broader £14.2 billion government initiative that includes the construction of Sizewell C, a large nuclear station in Suffolk, which will produce 3.2 gigawatts (GW) of electricity—enough to power six million homes.

SMRs offer a smaller, faster alternative to traditional nuclear plants

Unlike large-scale plants such as Sizewell C and Hinkley Point C, which require complex on-site construction, SMRs are designed to be manufactured on a production line and assembled on site.

Each unit is expected to produce around 470 megawatts, with at least three reactors planned in the initial phase to collectively deliver 1.5GW of electricity.

This factory-build approach aims to reduce both costs and the construction delays that have long plagued conventional nuclear projects in the UK.

While SMRs remain commercially unproven, Rolls-Royce believes its technology—based on well-established pressurised water reactors—can begin producing electricity as early as 2032.

Datacentres and technology companies are being targeted as early customers for the power produced by these smaller reactors.

Ministers promise jobs, growth and a “golden age of nuclear”

Announcing the programme, Energy Secretary Ed Miliband called it the beginning of a “golden age of nuclear,” pledging that the effort will support energy independence while creating thousands of skilled jobs.

Chancellor Rachel Reeves echoed that sentiment, saying the initiative would help “put more money in people’s pockets” by revitalising British industry and delivering long-term savings through stable energy supply.

Rolls-Royce SMR chief executive Chris Cholerton called the announcement “a milestone achievement,” noting that the company is already progressing on multiple international projects, including one in the Czech Republic and another in contention in Sweden.

“Deploying three of our units will drive domestic growth by creating thousands of highly skilled, well-paid jobs and supply chain opportunities,” he said.

Great British Nuclear to be absorbed into new state energy company

The announcement also confirmed a reshuffle of the government’s nuclear oversight bodies.

Great British Nuclear, the quango originally tasked with managing the SMR programme, will now be folded into Great British Energy, the newly formed public energy company under Ed Miliband’s department.

However, despite the optimistic tone, the government’s SMR ambitions have been scaled back.

Earlier proposals suggested that two or even three SMR designs might be taken forward to ensure competition and reduce the risk of relying on a single supplier.

With the Treasury under pressure to manage spending across healthcare and policing, the government has now opted for a more streamlined approach, selecting Rolls-Royce as the sole winner.

Industry analysts say this could limit innovation but acknowledge the decision brings clarity and momentum to the UK’s nuclear revival.

Tom Greatrex, chief executive of the Nuclear Industry Association, called it “a hugely significant moment” and highlighted the potential for exports.

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