In a significant development for its agricultural sector, particularly its robust beef export industry, Brazil has been officially recognized by the World Organization for Animal Health (WOAH) as a country free of foot-and-mouth disease (FMD) without the need for vaccination. 

This landmark announcement was jointly confirmed by a high-ranking Brazilian government official and a spokesperson representing the intergovernmental organisation to Reuters in a report.

This recognition marks a pivotal moment for Brazil, which stands as the world’s foremost exporter of beef. 

Achieving FMD-free status without relying on vaccination demonstrates the efficacy of Brazil’s stringent animal health protocols, surveillance systems, and dedicated efforts in disease prevention and control. 

This achievement is anticipated to have considerable positive impacts on Brazil’s beef industry, potentially opening up new avenues for trade and further solidifying its position in the global market.

The WOAH’s declaration follows a thorough assessment of Brazil’s animal health situation, verifying the absence of the highly contagious viral disease in its susceptible animal populations and confirming the strength of its veterinary infrastructure. 

The move to FMD-free status without vaccination is particularly noteworthy as it often entails more rigorous and sustained surveillance measures to ensure the continued absence of the disease.

Positive reactions

Brazilian meatpacker lobbies, representing industry giants such as JBS, Minerva, and Marfrig, hailed the development as historic, noting its potential to unlock new markets for Brazil.

“The new status will be announced on June 6 at a formal ceremony after a meeting between President Lula and WOAH Director General Emmanuelle Soubeyran,” Brazil’s Chief Veterinary Officer Marcelo Mota told Reuters on the last day of a WOAH conference in Paris.

In 2024, the robust Brazilian beef industry achieved substantial export figures, reaching close to $13 billion in value. 

These exports were directed to a diverse range of international markets, prominently including China, which represents a significant consumer base, the United Arab Emirates, a key trading hub in the Middle East, and the US. 

Notably, the US has increased its beef imports from Brazil due to a domestic shortage of cattle suitable for slaughter, highlighting Brazil’s growing role in meeting global beef demand. 

The Brazilian beef lobby, Abiec, stated that the change in health status could be strategically leveraged in negotiations to access markets with stringent regulations, such as Japan. 

Challenges

Abiec further noted that the Philippines and Indonesia have shown interest in importing beef offal due to this improved health status.

Albiec said:

The new status also brings new challenges and responsibilities for all actors involved.

This alludes to maintaining the herd in adequate sanitary conditions.

Brazilian authorities, including Agriculture Minister Carlos Favaro, had long anticipated the sought-after change.

In May 2024, Brazil declared the foot-and-mouth disease vaccination cycle complete. Minister Favaro stated this advancement elevated Brazil to “the next level of the world’s health elite.”

The ministry announced that Brazil’s objective to achieve foot-and-mouth disease freedom without vaccination, initially set for 2026, has been accelerated to 2025.

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The Trump administration signaled Thursday that it may ask the US Supreme Court as early as Friday to temporarily reinstate tariffs that were blocked by a federal trade court ruling this week, as per a CNBC report.

In a court filing, the administration said it would seek “emergency relief” from the Supreme Court if the US Court of Appeals does not itself grant a stay of the lower court’s ruling.

The move follows a decision by the US Court of International Trade that struck down dozens of country-specific tariffs imposed by President Donald Trump under the International Emergency Economic Powers Act.

The judges ruled that the law does not “confer such unbounded authority” to presidents.

Their decision imposed a nationwide and permanent block on the retaliatory tariffs that were introduced in early April under Trump’s “liberation day” trade initiative.

The ruling also prohibits the administration from modifying the blocked tariffs in the future and gives it 10 days to comply.

Trump admin attacks court

While appealing the decision, the administration is also asking the trade court to pause enforcement during the appeal process.

“It is critical, for the country’s national security and the President’s conduct of ongoing, delicate diplomatic efforts, that the Court stay its judgment,” Department of Justice attorney Sosun Bae wrote.

Bae cited declarations from several cabinet officials — including Secretary of State Marco Rubio, US Trade Representative Jamieson Greer, Commerce Secretary Howard Lutnick, and Treasury Secretary Scott Bessent — warning that the ruling could derail a preliminary trade agreement with China and jeopardise future talks.

Top White House officials sharply criticized the trade court’s decision.

“We are living under a judicial tyranny,” said Deputy Chief of Staff Stephen Miller, who earlier posted that “the judicial coup is out of control.”

Advisor Jason Miller said on Fox Business that “unelected judges” were interfering with the administration’s trade and tax policies.

Trade advisor Peter Navarro called the court “globalist” and “pro-importer” in a television interview, suggesting the judges were biased against the administration.

The panel of judges — Jane Restani, Timothy Reif, and Gary Katzmann — was appointed by Presidents Ronald Reagan, Donald Trump, and Barack Obama, respectively.

The option to revive Trump tariffs

Tariffs have been a key element of Trump’s economic agenda, serving both as a negotiating tool and a potential revenue source for military spending and tax cuts.

Despite the setback, Navarro said the administration still has options.

“Any trade lawyer knows there’s just a number of different options we can take,” he said. “So nothing has really changed here in that sense.”

Goldman Sachs economists said the recent court ruling striking down former President Trump’s reciprocal tariffs is a setback but unlikely to derail the administration’s broader tariff agenda.

In a note to clients, the bank said the White House retains multiple legal avenues to reimpose similar trade measures.

“This ruling represents a setback for the administration’s tariff plans and increases uncertainty, but might not change the final outcome for most major US trading partners,” the economists wrote.

According to Goldman, one of the most immediate workarounds could come via Section 122 of the Trade Act of 1974, which allows the president to impose tariffs of up to 15% without a formal investigation.

While such measures would expire after 150 days without congressional approval, they could provide a near-term substitute for the now-invalidated levies.

Goldman flagged Section 338 of the Trade Act of 1930 as another potential option, noting that while it has never been used, it allows the president to impose tariffs of up to 50% on imports from countries that discriminate against US goods.

In short, while the court ruling adds a layer of legal complexity, Goldman believes it is unlikely to significantly alter the administration’s ability to pursue its trade agenda.

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The security of Germany’s gold reserves stored abroad, especially in New York, has transitioned from a fringe topic discussed primarily by the far-right and gold enthusiasts to a subject of broader public discussion following Donald Trump’s return to the White House.

The Alternative for Germany (AfD), a right-wing party in Germany, has supported demands for the repatriation of the nation’s gold reserves abroad, a topic that has drawn attention to those holdings in the past, according to a Reuters report.

Germany’s central bank, the Bundesbank, possesses the world’s second-largest gold reserves, totaling 3,352 tonnes. 

A significant portion, one-third of this amount, is held at the Federal Reserve Bank of New York. This arrangement is a legacy of the Cold War era and the post-World War II monetary system.

US President Trump’s recent disputes with long-term allies regarding trade and security, along with his criticism of the Federal Reserve, have reignited a previously subdued issue. 

Consequently, more mainstream commentators are now engaging in this discussion.

Trump threat

The German Taxpayers Federation has recently urged both the Bundesbank and the Finance Ministry, through letters sent this week, to bring back Germany’s gold reserves currently held in the United States.

Michael Jaeger, vice-president of the Taxpayers Federation, stated to Reuters that Trump’s desire to control the Federal Reserve would extend to controlling German gold reserves held in the US. 

Jaeger emphasized: 

It’s our money, it should be brought back.

According to Markus Ferber, a prominent German member of the European Parliament from the Christian Democrats, the US can no longer be considered the dependable ally it once was.

“Trump is erratic and one cannot rule out that someday he will come up with creative ideas how to treat foreign gold reserves,” he was quoted in the report. 

“The Bundesbank’s policy for gold reserves has to reflect the new geopolitical realities.”

Public broadcasters, ZDF and ARD, have also recently aired reports questioning the security of Germany’s gold reserves stored in New York.

The Bundesbank stated that the New York Fed continues to be “an important storage location” for its gold reserves.

Mistrust in Fed

Any suggestion that Germany is contemplating relocating its gold reserves from New York is a politically delicate matter. Such a move could be construed as a sign of mistrust in the Federal Reserve and its autonomy.

The European Central Bank recently affirmed its confidence in the Federal Reserve as a dependable ally. 

However, concerns have arisen regarding the Fed’s future autonomy and its enduring commitments to its counterparts due to Trump’s repeated criticism of Fed Chairman Jerome Powell, whose tenure concludes in one year.

Peter Boehringer, the AfD lawmaker who spearheaded the initial gold repatriation campaign a decade ago, expressed satisfaction that the mainstream media and fellow lawmakers are now discussing this issue. 

He believes this development validates his long-standing efforts.

When I started asking about the gold, I was dismissed as a conspiracy theorist,” he said. “Today, after Trump, my concerns are shared widely.

Gold accumulation

During the export surge of the 1950s and 1960s, Germany amassed the majority of its gold reserves. 

A significant benefit of holding a portion in New York throughout the Cold War was its secure location, far from potential Russian invasion.

The presence of gold further solidified a military alliance with the US. 

This alliance is underscored by the continued presence of numerous American military bases in Germany, including the largest such installation in Europe.

Between 2014 and 2017, the Bundesbank repatriated 300 tonnes of gold from New York, a move intended to bolster domestic confidence following the dissolution of the Soviet Union.

Russia’s invasion of Ukraine and the implied danger it poses to the rest of Europe will probably further complicate Germany’s geopolitical considerations.

Need for diversification

Ferber’s experience highlighted the necessity of diversifying gold reserves across multiple, potentially new, locations. 

Currently, Germany’s gold is stored at the Bundesbank in Frankfurt, the Federal Reserve Bank of New York, and the Bank of England in London.

“For gold reserves, diversification is key. Having all eggs in too few baskets is never advisable,” Ferber said in the report. 

The Bundesbank stated that it conducts routine sample tests and has examined 13% of its New York stock over time.

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Core inflation in Japan’s capital surged to a more than two-year high in May, primarily driven by persistent increases in food costs, according to data released on Friday.

This development intensifies the pressure on the Bank of Japan (BOJ) to consider further interest rate hikes, even as separate figures revealed a concerning slide in factory output, highlighting the central bank’s complex balancing act.

The Tokyo core consumer price index (CPI), a key metric that excludes volatile fresh food costs, rose by 3.6% in May compared to a year earlier.

This figure surpassed market forecasts, which had anticipated a 3.5% gain, and marked an acceleration from the 3.4% rise recorded in April.

The May reading represents the fastest annual pace of increase since January 2023, when core inflation hit 4.3%.

Significantly, core inflation in Tokyo, widely regarded as a leading indicator of nationwide price trends, has now exceeded the Bank of Japan’s 2% target for three consecutive years.

Further underscoring the broadening price pressures, a separate index that strips away the effects of both fresh food and fuel costs—a measure closely watched by the BOJ as an indicator of underlying price trends—rose by 3.3% in May from a year earlier, up from a 3.1% rise in March.

This persistent upward creep in prices is leading some analysts to recalibrate their expectations for BOJ policy.

“The Tokyo CPI showed a further broad-based acceleration in inflation, which suggests that the BOJ may hike even earlier than our current forecast of October,” commented Marcel Thieliant, head of Asia-Pacific at Capital Economics.

A Reuters poll conducted between May 7-13 indicated that most economists expect the BOJ to hold rates steady through September, with a small majority forecasting a rate hike by the end of the year.

Food costs and services drive inflation; factory output falters

Sticky food inflation remained the primary driver of the overall rise, with non-fresh food prices climbing 6.9% in May year-on-year, and the cost of rice experiencing a staggering 93.2% surge.

However, services inflation also gathered pace, accelerating to 2.2% in May from 2.0% in April. This suggests that companies are gradually beginning to pass on rising labor costs to consumers.

“The fact services prices rose is positive for the BOJ, which wants to keep alive expectations of further rate hikes,” observed Masato Koike, senior economist at Sompo Institute Plus.

However, he also pointed to external uncertainties: “But US policy uncertainty will make it hard to keep the BOJ from hiking too soon. By the time the dust settles, price developments could have changed in a way that makes rate hikes difficult.”

The inflationary concerns are juxtaposed with signs of weakness in the manufacturing sector.

Separate data released on Friday showed that Japan’s factory output fell by 0.9% in April compared to the previous month.

While manufacturers surveyed by the government expect output to increase by 9.0% in May, they anticipate a subsequent drop of 3.4% in June.

This indicates that manufacturers are feeling the pinch from slowing global demand and the economic repercussions of steep US tariffs, which could hurt their profits and discourage them from raising wages next year.

Many analysts also expect overall consumer inflation to slow in the coming months due to falling crude oil prices and a drop in import costs resulting from the yen’s recent rebound.

The BOJ’s tightrope walk: inflation vs. growth headwinds

Despite potential moderating factors, persistent food inflation may not allow the Bank of Japan to pause its rate hike considerations for an extended period.

A survey by private think tank Teikoku Databank, released on Friday, revealed that Japanese firms plan to hike prices for 1,932 food and beverage items in June, a figure triple that of a year ago.

This signals that more price increases are on the horizon for consumers.

BOJ Governor Kazuo Ueda acknowledged these dynamics in a parliamentary address on Friday, stating that the central bank was “mindful that companies continued to actively hike wages and raise prices to pass on higher costs.”

Adding to this, Tsutomu Watanabe, an academic at the University of Tokyo’s graduate school of economics, warned, “Japan may face a tricky situation where public attention to rising food prices heighten inflation expectations, which have so far been stable.”

The Bank of Japan ended its massive stimulus program last year and, in January, raised short-term interest rates to 0.5%, predicated on the view that Japan was on the verge of durably achieving its 2% inflation target.

While the central bank has signaled its readiness to raise rates further, the economic fallout from higher US tariffs has forced it to cut its growth forecasts, thereby complicating decisions around the timing of the next rate increase.

The BOJ now faces the delicate task of taming inflation without derailing a fragile economic recovery.

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Elon Musk is diving back into his companies, declaring a renewed, round-the-clock focus on Tesla, SpaceX and his AI venture xAI, just as each prepares for high-stakes moves that could shape their futures.

On Wednesday evening, Musk announced he was stepping away from his role at the Department of Government Efficiency (DOGE), a four-month initiative aimed at cutting federal spending by up to $2 trillion—a target that has so far seen only modest progress.

“Back to spending 24/7 at work and sleeping in conference/server/factory rooms,” the billionaire wrote on X last Saturday.

The pivot comes at a time of mounting operational and reputational challenges for Musk’s empire.

While some conservative policymakers continue to view Musk’s involvement as a symbolic victory for budget hawks, others in the business world, including Musk, have acknowledged that his political engagements have hurt his businesses.

From Tesla’s sliding sales to SpaceX’s Mars ambitions and the AI arms race heating up against OpenAI and others, the workload is immense — and the stakes are higher than ever.

At Tesla, Robotaxi launch, falling Europe sales a priority

At Tesla, Musk’s renewed involvement comes as the company nears the launch of its long-promised robotaxi service in Austin, Texas.

The service is expected to debut next month, and Musk recently highlighted road tests of self-driving Model Y vehicles operating without anyone in the driver’s seat, stating there had been “no incidents.”

Tesla is betting heavily on autonomy to counteract falling sales and eroding market share.

In the US and Europe, Tesla deliveries have slumped in recent months, with European sales declining for a fourth straight month in April.

For the first time, Chinese rival BYD overtook Tesla in sales.

While Tesla remains the largest EV maker in the US, investor confidence has wavered, not least because of Musk’s increasingly political profile.

His role in the DOGE, and $300 million in Republican campaign donations have fuelled buyer backlash and added volatility to Tesla’s stock.

During Musk’s absence this spring, the Tesla board reportedly initiated informal talks with executive search firms to plan for potential CEO succession, though the company has denied any formal search process.

Tesla chair Robyn Denholm said the board remains confident in Musk’s leadership and emphasized a renewed focus on the company’s “exciting growth plan.”

Investors have reacted positively to Musk’s return.

Tesla’s market capitalization, which had plummeted after Trump’s election and Musk’s increasing political involvement, has rebounded above $1 trillion on the news.

SpaceX pursues Mars as setbacks mount

Musk’s other major undertaking, SpaceX, is trying to prepare for what could be its most ambitious mission yet: a Mars-bound test of its Starship spacecraft in 2026.

That year presents a rare orbital opportunity, when Earth and Mars will be at their closest.

But serious technical challenges persist.

Earlier this year, two Starship prototypes exploded in flight.

The most recent test flight failed to deliver on a critical objective: testing the spacecraft’s heat-protective tiles during atmospheric reentry.

SpaceX lost contact with the vehicle before the tile system could be assessed.

Despite setbacks, SpaceX retains strong government ties.

Its partially reusable Falcon rockets continue to carry out missions for NASA and the Pentagon.

On Friday, SpaceX is scheduled to launch a GPS satellite for the US military.

The company’s Starlink satellite internet network, with over 7,500 satellites in orbit, has become another vital business line — one that has earned it increasing favour from US intelligence agencies.

Intense rivalry between xAI and OpenAI another frontier

Musk’s attention is also shifting toward artificial intelligence, a field he has long warned could pose existential risks.

His AI startup, xAI, recently merged with X (formerly Twitter) in a bid to pool resources and accelerate the development of artificial general intelligence — what he calls “digital superintelligence.”

The combined entity has introduced Grok, a chatbot that Musk claims will surpass competitors.

The company is working on high-profile partnerships to extend Grok’s reach, including a potential collaboration with Microsoft.

However, efforts to secure a place in a major Middle East AI deal were unsuccessful, The Wall Street Journal reported.

Musk’s return to xAI signals a sharpening rivalry with former partners at OpenAI, which he co-founded but later criticized for being too aligned with corporate interests.

Neuralink and Boring Company progress slowly

Beyond Musk’s primary focus areas, his other ventures are making slow but notable progress.

Neuralink, now led by Shivon Zilis, is entering a new phase of clinical testing in the Middle East aimed at patients with motor and speech impairments.

The brain-implant startup has already implanted chips in at least three paralyzed patients who can now interact with computers using their thoughts alone.

Meanwhile, The Boring Company, under longtime Musk deputy Steve Davis, is working on a proposed 68-mile tunnel system in Las Vegas.

While the company has been unable to break ground on major projects elsewhere, the Las Vegas system is gradually expanding.

Davis, like Musk, also stepped down from DOGE this week.

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