Mitsubishi Corp. has agreed to acquire Aethon Energy Management LLC’s US natural gas production and pipeline assets for $5.2 billion, marking the largest purchase ever by a Japanese company in the American shale sector.

Including debt, the deal values the assets at about $7.5 billion and significantly expands Mitsubishi’s footprint in the US gas market.

The transaction involves the sale of Aethon III LLC, Aethon United LP, and related entities and interests to Mitsubishi, the Japanese trading house said in a statement on Friday.

The companies had been working toward a deal since at least mid-2025.

Deal structure and strategic rationale

Under the agreement, Mitsubishi will pay $5.2 billion for Aethon’s equity interests and assume $2.33 billion of net interest-bearing debt.

A separate statement put the total enterprise value at $7.5 billion.

Aethon Energy Management will retain the right to buy back up to 25% of Aethon’s upstream and midstream assets.

“The US gas market is the world’s largest in domestic demand, production, and exports, and further demand growth is expected, driven by rising power needs from AI/data centers,” Mitsubishi said.

The acquisition gives Mitsubishi substantial natural gas production and pipeline assets located near the US Gulf Coast, an area that hosts several liquefied natural gas export terminals.

Aethon’s upstream assets are concentrated in the Haynesville shale basin in eastern Texas and northern Louisiana, one of the most prolific gas-producing regions in the country.

Albert Huddleston, who founded Dallas-based Aethon, and his family are set to benefit significantly from the transaction.

The company is among the most active drillers in the Haynesville and is strategically positioned close to LNG export facilities along the Gulf Coast.

Japan’s expanding bet on US Gas

The deal reflects a broader push by Japanese energy companies to expand their exposure to US oil and gas, particularly natural gas.

Japanese firms are responding to renewed support for US energy development from President Donald Trump’s administration, which has urged Tokyo to increase investment in North America.

Mitsubishi, which counts Berkshire Hathaway Inc. as a major shareholder, is already a major global player in liquefied natural gas.

It engages across the full LNG value chain, from upstream production to trading, marketing, and logistics, and holds equity stakes in LNG projects in Malaysia, Oman, Australia, Russia, the US, and Canada.

Its total equity LNG production is currently about 15 million metric tons per year.

Japan’s government has identified natural gas as a key transition fuel even beyond 2050 and expects power demand to rise sharply over the next decade due to the artificial intelligence boom and the growth of data centers.

Market impact and recent precedents

The acquisition adds to a string of recent Japanese investments in US shale.

Tokyo Gas Co. bought Rockcliff Energy II LLC for $2.7 billion in 2023, while Jera Co. recently acquired a stake in a shale gas asset in western Louisiana.

In October, JERA announced its intention to acquire US natural gas production assets for $1.5 billion, and in December, Japan Petroleum Exploration confirmed its plan to acquire Verdad Resources Intermediate Holdings for $1.3 billion, marking its largest-ever deal.

Shares in Mitsubishi extended their decline following the announcement, trading down 2%, compared with a 0.3% fall in Japan’s Nikkei 225 index.

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Global markets and geopolitics set the tone on Friday, with Asian equities advancing on renewed optimism surrounding artificial intelligence, the Japanese conglomerate Mitsubishi Corp. striking a landmark US shale acquisition, and US President Donald Trump making headlines regarding Venezuela and Gaza.

Asian markets advance as AI optimism returns

Asian stocks moved higher on Friday as the artificial intelligence trade regained momentum, while the US dollar hovered near a six-week high following strong US economic data that led traders to scale back expectations for interest rate cuts.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.68% and hovered near a record high hit in the previous session.

Gains were driven in part by strong results from Taiwanese chipmaker TSMC, which helped revive confidence in AI-linked stocks.

Overnight, Wall Street closed higher, with Nasdaq futures up 0.44% and S&P 500 futures adding 0.31% in Asian trading.

“We know there’s lingering doubts about the spend around capex and AI more broadly, and I guess with the TSMC report yesterday being pretty solid and sounding optimistic, it certainly provided a much-needed shot in the arm for those AI names which have been struggling on Wall Street in recent months,” said Tony Sycamore, a market analyst at IG in a Reuters report.

Japan’s Nikkei was down 0.04%, weighed down partly by a firmer yen, while European equity futures edged lower after record highs the previous session.

In currencies, the dollar stood near 99.31 against a basket of peers, supported by data showing US jobless claims unexpectedly fell.

Mitsubishi to buy Aethon’s US gas assets

Mitsubishi Corp. agreed to acquire Aethon Energy Management LLC’s US natural gas production and pipeline assets for $5.2 billion, valuing the deal at about $7.5 billion including debt.

It is the largest purchase ever by a Japanese company in the US shale sector.

The transaction involves Aethon III LLC, Aethon United LP, and related entities.

Mitsubishi will pay $5.2 billion for equity interests and assume $2.33 billion of net interest-bearing debt, while Aethon retains the right to buy back up to 25% of certain assets.

“The US gas market is the world’s largest in domestic demand, production, and exports, and further demand growth is expected, driven by rising power needs from AI/data centers,” Mitsubishi said.

The assets are concentrated in the Haynesville shale basin in eastern Texas and northern Louisiana, near major LNG export terminals.

Shares in Mitsubishi fell 2% following the announcement.

Trump accepts Nobel medal from Venezuelan opposition leader Machado

Venezuelan opposition leader Maria Corina Machado gave her Nobel Peace Prize medal to President Donald Trump during a White House meeting on Thursday, a move confirmed by a White House official, who said Trump intends to keep the medal.

In a social media post, Trump wrote: “Maria presented me with her Nobel Peace Prize for the work I have done. Such a wonderful gesture of mutual respect. Thank you Maria!”

Machado said the gift recognized what she described as his commitment to the freedom of the Venezuelan people.

Machado’s outreach to Trump followed his rejection of proposals to install her as Venezuela’s leader in place of the ousted Nicolás Maduro.

Trump had publicly lobbied for the award ahead of last month’s decision and later expressed strong dissatisfaction after being passed over.

The Norwegian Nobel Institute has said the prize itself cannot be transferred, shared, or revoked.

Trump backs transitional Palestinian panel in Gaza

Trump also said he supports a newly appointed “Palestinian Technocratic Government” to govern Gaza during a fragile ceasefire period that began in October.

“I am backing a newly appointed Palestinian Technocratic Government, the National Committee for the Administration of Gaza, supported by the Board’s High Representative, to govern Gaza during its transition,” Trump said.

He added that the international “Board of Peace,” which he chairs, would oversee the process, as mediators work to navigate ceasefire challenges, disarmament, and future governance amid ongoing tensions in the region.

Israel and the Palestinian militant group Hamas approved Trump’s plan in October, under which a Palestinian technocratic authority would operate under the oversight of an international “Board of Peace,” tasked with supervising Gaza’s administration during a transitional phase.

As efforts move forward into the second stage of the ceasefire, Washington and its mediation partners face complex issues, including the disarmament of Hamas, additional Israeli withdrawals linked to that process, and the potential deployment of an international peacekeeping force.

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Chow Tai Fook Jewellery Group, recognised as China’s preeminent jewellery seller, commands a vast retail network encompassing thousands of stores throughout mainland China and Hong Kong. 

With its dominance well-established in its domestic markets, the Group is strategically beginning to look beyond its traditional borders for new avenues of growth and market expansion.

Southeast Asia: crucial pilot for international growth

This international pivot is commencing in Southeast Asia, a region characterised by burgeoning middle classes and increasing consumer spending power, according to a Reuters report. 

As a first significant step in this expansion, Chow Tai Fook has inaugurated a new store in Thailand, the report said. 

This move signals a deliberate effort by the luxury retailer to diversify its geographical footprint and tap into the vibrant consumer base of Southeast Asia, laying the groundwork for potential further penetration into this dynamic and rapidly developing market. 

The expansion into Thailand serves as a crucial pilot, allowing the Group to adapt its successful business model and product offerings to local tastes and preferences before potentially rolling out a wider regional strategy.

The company inaugurated a new flagship store in Siam Paragon, a high-end shopping and lifestyle destination in Bangkok, Thailand. 

This strategic international expansion is emblematic of a broader trend among consumer brands from China and Hong Kong. 

Overcoming domestic headwinds with global expansion

Facing significant headwinds at home—including a deceleration in domestic consumer spending, increasing market saturation, and intense pricing competition—these companies are increasingly looking to overseas markets to drive growth. 

The move into the Thai capital signifies a concerted effort to diversify revenue streams and establish a foothold in burgeoning international luxury markets as a counterbalance to a challenging economic environment in their home region.

The company is experiencing “strong momentum in Southeast Asia” regarding its international expansion, according to its Vice Chairman, Sonia Cheng.

Chow Tai Fook is expanding its international presence, with plans to open its first stores in Australia and Canada by the end of June. Additionally, the company is aiming to enter the Middle East market within the next two years.

Cheng was quoted as saying in the report:

We remain committed to measured, value-adding growth, with Dubai and Doha next on the horizon — a testament to our brand’s enduring global appeal.

Chinese brands, including Pop Mart, Miniso, Xiaomi, and Anta, are now focusing on building a stronger international presence in the consumer and lifestyle sectors. This global expansion signals a strategic shift beyond their traditional role in low-cost manufacturing.

Chow Tai Fook, founded 97 years ago, is facing increased competition from newer rivals.

For example, Laopu Gold has recently become popular by offering a luxury retail experience and jewellery featuring traditional Chinese craftsmanship.

On Friday, the jeweller also announced that the Chinese actor Yang Yang has been appointed as its global brand ambassador.

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Japan has joined a growing list of countries scrutinising X over Elon Musk’s artificial intelligence service Grok and concerns that the chatbot can be used to create and spread sexualised images of people without their consent.

The development adds new pressure on the social media platform as regulators worldwide step up checks on AI tools that may violate privacy and image rights.

Japan’s move comes after Grok triggered backlash this month for how easily it could be used to manipulate photos to sexualise or demean individuals. While restrictions have been introduced, officials say the risk has not been fully contained.

According to Bloomberg, the Cabinet Office has asked X to improve safeguards and curb the output of sexually altered images created through Grok, Economic Security Minister Kimi Onoda said.

Officials also submitted written questions about what measures X has in place to prevent deepfakes and other images that violate people’s privacy, intellectual property, and the right to control the use of their likeness, she added.

Cabinet Office pushes X to strengthen Grok safeguards

Onoda said the government is seeking clearer answers on how X plans to stop the creation of harmful doctored images, including non-consensual sexualised deepfakes.

Japan’s Cabinet Office is also looking at whether the platform’s current measures are effective enough to prevent misuse, especially as the tools become more accessible and harder to detect.

Grok drew heavy criticism this month from users and governments, from Malaysia to Italy, over the ease with which it could be used to manipulate images.

Since then, Grok has applied some restrictions on its image-generation capabilities and put them behind a paywall.

Japan warns legal steps remain possible

Japan’s intervention has been accompanied by a warning that stronger action is possible if the problem continues. Speaking at a news conference on Friday, Onoda said all options remain available if X does not improve safeguards.

She said the government is prepared to consider legal steps if there is no improvement.

Onoda also signalled that Japan may take similar action against other platforms if the same kind of issue emerges elsewhere, indicating that regulators are watching the wider AI market, not just Grok.

Earlier this week, xAI, the company behind Grok, said it is disabling the ability for users to generate sexualised images of real people using the chatbot.

Still, Onoda said the ongoing ability to create such content remains a concern and may require further measures.

Global probes widen as countries tighten access

Japan’s move comes as investigations expand across multiple jurisdictions.

Canada, California, the European Union, and individual EU member states such as France are probing whether Grok’s generated images violate people’s rights.

In parts of Southeast Asia, authorities have taken a more direct route by restricting access.

Malaysia, Indonesia, and the Philippines have restricted domestic access to Grok, reflecting growing concern about how quickly AI-generated content can spread and how difficult it can be to contain once created.

The issue has placed X and xAI under renewed attention at a time when governments are increasingly focused on regulating AI tools that can blur the line between real and synthetic media.

Japan’s AI law limits enforcement power

Japan is trying to balance tighter controls with its ambition to catch up with the US and China in AI, an area it sees as important to national strategy.

However, its current framework may limit how aggressively it can respond.

Japan’s AI law, which took full effect in September, carries no penalties.

This restricts government interference largely to investigations and issuing formal guidance when violations occur, rather than imposing direct sanctions.

Discussions among Japanese policymakers have centred on measures such as educating users and requiring AI services to show when images have been doctored.

As per Bloomberg, the Cabinet Office is also seeking to coordinate possible steps with the Justice Ministry, the National Police Agency, and the Communications Ministry.

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Barclays share price has been in a strong bull run and is now hovering at its highest level on record. It has jumped in the last five consecutive months, and is up by 683% from its lowest level during the pandemic, bringing its market cap to over £67 billion. So, what’s next for the overbought BARC stock?

Barclays stock to benefit from trading and deal-making

Barclays shares have been in the spotlight this year as investors reacted to a statement by Donald Trump on capping interest rates on credit cards to 10%. 

He made that statement as he started to focus on the affordability issue ahead of the mid-term elections. Analysts believe that banks will ultimately sue the administration, as there is no law that mandates such a cap. Barclays runs a big credit card company in the US and would be impacted by that cap. 

Barclays share price is also in the spotlight amid the trading and deal-making boom, especially in the United States. Top companies like Goldman Sachs and Morgan Stanley published strong financial results.

Data shows that the top five American banks reported a record $134 billion in trading revenue last year, helped by Donald Trump’s volatility. Its revenue rose by 15% last year, the biggest increase in five years.

At the same time, these companies published strong investment banking revenues with a backlog since 2021 when deal-making surged. These benefited from the soaring demand for equity and debt and equity underwriting.

Therefore, analysts believe that Barclays will also publish strong numbers as it is one of the biggest players in the investment banking and trading industries globally.

The most recent results showed that the company’s investment banking business continued doing well. 

For example, its investment bank made over £3.1 billion in income, up from £2.9 billion in the same period a year earlier. Its statutory Return on Tangible Equity (RoTE) rose to 10.1% from the previous 8.8%.

The company also boosted its forward guidance for the year and unveiled a large £500 million share buyback. It also announced that it would start paying a quarterly dividend as part of its £10 billion to shareholders.

Barclays share price, like Lloyds, has also jumped as traders believe that its motor insurance crisis is ending. It booked £235 million charge for motor finance to compensate customers. It had set aside £90 million for this compensation. 

Additionally, Barclays stock did well after Chancellor Rachel Reeves budget speech. She decided not to introduce windfall taxes as some analysts were expecting.

Barclays share price technical analysis 

BARC stock chart | Source: TradingView

The weekly chart shows that the BARC stock price has been in a strong bull run in the past few years. It has rallied to 484p from a low of 116p in 2022 and 2023.

The risk, however, is that the stock’s Relative Strength Index (RSI) has moved into the extreme overbought level of 77. At the same time, the stock has remained much higher than the 50-week and 100-week Exponential Moving Averages (EMA). 

This means that the stock could go through mean reversion this year. Mean reversion is a situation where an asset moves back to its historical averages.

The next key catalyst for the stock will be on February 10 when the company publishes its financial results. 

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Interactive Brokers on Thursday expanded its crypto-linked services by allowing eligible clients to fund brokerage accounts using stablecoins, a move the firm says will provide faster, round-the-clock access to global markets.

The announcement underscores growing efforts by traditional brokerages to match the speed and flexibility offered by crypto-native platforms.

The brokerage said it partnered with stablecoin infrastructure provider Zero Hash to support USDC deposits on Ethereum, Solana, and Base, with incoming funds automatically converted into US dollars and credited to client accounts.

It plans to add Ripple USD and PayPal USD next week.

Once received, the stablecoin is automatically converted into US dollars and credited to the client’s brokerage account, enabling trading shortly after the transfer is initiated.

Clients will be able to send USDC on the Ethereum, Solana, or Base blockchains.

Stablecoin deposits and planned expansion

“Stablecoin funding provides international investors with the speed and flexibility required in today’s markets. Clients can transfer funds and begin trading within minutes, while also reducing transaction costs,” Milan Galik, chief executive officer of Interactive Brokers, said in the release.

The firm said it does not charge fees for stablecoin deposits, although users are responsible for blockchain network fees.

ZeroHash applies a 0.30% conversion fee per deposit, with a minimum fee of $1.

At press time, USDC had a market capitalization of $75.54 billion, making it the world’s second-largest stablecoin behind Tether, which stands at $186.74 billion.

Addressing cross-border funding frictions

Interactive Brokers said the move is aimed at addressing what it described as a “critical pain point” in accessing global capital markets.

Traditional cross-border funding via fiat wire transfers can be slow, expensive, and restricted by banking hours, the firm said.

In contrast, stablecoin funding offers near-instant settlement, lower costs, and 24/7 availability.

The brokerage began offering stablecoin account funding for US retail clients in December, and Thursday’s announcement extends the capability more broadly to eligible clients.

The initiative builds on Interactive Brokers’ broader push into crypto-related services.

The firm first introduced cryptocurrency trading in 2021, initially supporting Bitcoin and Ether.

Additional tokens, including Solana and XRP, were added in 2025.

Interactive Brokers has also been an investor in ZeroHash, which previously said it raised $104 million at a $1 billion valuation.

Stablecoin market growth and investor response

The expansion comes amid rapid growth in the stablecoin sector.

Throughout 2025, stablecoins gained traction as governments, financial institutions, and market participants explored their use for payments and settlement.

The stablecoin sector surpassed $300 billion in market capitalization for the first time in October, driven largely by Tether, USDC, and Ethena Labs’ yield-bearing stablecoin USDe.

As of Friday, the total stablecoin market capitalization stood at more than $310 billion, according to data from DeFi data aggregator DefiLlama.

By enabling stablecoin funding with automatic conversion into US dollars, Interactive Brokers is positioning itself to attract international investors seeking faster access to markets, while maintaining the familiarity of traditional brokerage accounts.

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Porsche share price continued its freefall on Friday after the company published the latest vehicle delivery data. It tumbled to €42.35, its lowest level since November 2021, and 14% below its highest level in November. It remains 61% below its all-time high.

Porsche vehicle sales plunge

Porsche, one of the best-known vehicle brands, has come under intense pressure in the past few years. This performance happened as it faced a triple-whammy. The first one came from the United States, where Donald Trump added a 15% tariff on German imports.

These tariffs affected its business more than other companies because the US is its fastest-growing market. Also, it manufactures all its vehicles in Germany.

Second, its decision to expand its business to the electric vehicle segment flopped. While its first EV saw encouraging sales, the business then hit a wall. This is an issue that has affected other car companies like General Motors and Ford that have announced huge write-downs recently. 

READ MORE: Here’s why the Porsche stock price has imploded

Third, all this was happening as its business in key markets was slowing. A good example of this is China, where its business has faced substantial competition from local brands like BYD, XPeng. Nio, and Xiaomi. 

In a statement, Porsche said that its vehicle deliveries dropped by 10% last year, the worst performance since 2009. It delivered 279,449 vehicles last year, with Germany and China leading the drop. 

Porsche, with a new CEO, has pledged to improve its business this year. It has scaled back its EV ambitions and pledged to launch new vehicles and boost its margins.

The most recent results showed that its revenue dropped by 6% to €26.86 billion in the third quarter. Its operating profit plunged by 99% to €40 million as its deliveries to customers fell by 6%.

On the positive side, Porsche is still a strong brand that may resume growing this year. For example, Germany announced that it will start offering a €6,000 package to help consumers buy electric vehicles. These measures may help the company start doing well.

Porsche share price technical analysis

Porsche stock chart | Source: TradingView

The weekly timeframe chart shows that the Porsche stock price has plunged in the past few years. It moved from a high of €110 in 2023 to the current €42.

The stock remains below all moving averages, a sign that bears remains in control. Also, the stock has formed a giant bearish flag pattern, which is made up of a vertical line and an ascending channel.

Therefore, the most likely outlook is where the stock continues falling, potentially to the all-time low of €38.6. This price was its lowest point in March 2025. A move below that level will point to more downside, potentially to the support at €35 or €30.

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As weight-loss drugs fuel a dramatic shift in American waistlines, Wall Street is eyeing an unexpected beneficiary of the trend: the airline industry.

Analysts at Jefferies suggest that the widespread adoption of obesity drugs could lead to significant fuel savings for carriers, as lighter passengers reduce overall aircraft weight and enhance fuel efficiency.

With fuel among the biggest cost items for airlines, even modest reductions in weight could deliver a noticeable lift to profits.

“A slimmer society = lower fuel consumption. Airlines have a history of being vigilant around aircraft weight savings, from olives (pitless, of course) to paper stock,” the Wall Street firm said in a note to clients.

Fuel savings could add up quickly, leading to upside in EPS

As weight-loss drugs become more accessible and obesity rates begin to fall, Jefferies said major US carriers, including American Airlines, Delta Air Lines, United Airlines and Southwest Airlines, could benefit disproportionately.

The broker estimates that a 10% reduction in average passenger weight could result in about a 2% reduction in total aircraft weight.

That, in turn, could lower fuel costs by up to 1.5% and lift earnings per share by as much as 4% across the group.

The four airlines together are expected to burn around 16 billion gallons of fuel this year, at an average cost of $2.41 per gallon.

That equates to a combined fuel bill of nearly $39 billion, representing about 19% of total operating expenses, according to Jefferies.

On that basis, Jefferies projects potential EPS gains of roughly 2.8% for Delta, 3.5% for United, 4.2% for Southwest and as much as 11.7% for American, which has higher operating leverage to fuel costs.

Why weight matters so much

Aircraft weight is one of the most important drivers of fuel efficiency, a point frequently highlighted by manufacturers such as Boeing.

When a plane is delivered, it has a fixed operating empty weight, with the remaining allowance up to maximum takeoff weight allocated among fuel, passengers, baggage and cargo.

Jefferies pointed to the Boeing 737 Max 8 as an example.

The aircraft has an operating empty weight of about 99,000 pounds, capacity for roughly 46,000 pounds of fuel and about 36,000 pounds of payload.

In a typical two-class configuration with 178 passengers averaging 180 pounds each, passengers account for around 32,000 pounds.

A 10% decline in average passenger weight would reduce that figure by about 3,200 pounds, or roughly 2% of maximum takeoff weight.

Spread across thousands of flights each year, the resulting fuel savings could be significant.

Airlines have long obsessed over weight

The industry’s fixation on weight is well documented.

In 2018, United Airlines switched its in-flight magazine to lighter paper, cutting roughly an ounce per copy.

Jefferies said the move was expected to save about 170,000 gallons of fuel annually, worth close to $290,000 at the time.

Now, analysts argue, structural changes driven by pharmaceuticals could dwarf such incremental measures.

GLP-1 drugs widen potential impact

The backdrop is the rapid expansion of the global weight-loss drug market.

Earlier this month, Novo Nordisk launched the first pill version of its GLP-1 obesity treatment in the US at a lower cost than injectable alternatives.

A similar pill from Eli Lilly is expected to receive US approval within months.

By removing the need for injections, pills are widely expected to attract first-time users and accelerate adoption.

According to McKinsey, nearly one in three US adults, or about 100 million people, meet the clinical definition of obesity, alongside around 900 million people globally.

Morgan Stanley estimates that about 11% of the world’s 1.3 billion eligible population could eventually be using obesity drugs.

The bank forecasts the market could reach $150 billion by 2035, up from $15 billion in 2024, suggesting the downstream effects may extend well beyond healthcare.

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Canada is betting on a faster reset with China after months of trade disruption that hit farmers, seafood exporters, and the wider supply chain.

During Prime Minister Mark Carney’s visit to China this week, Ottawa said it expects Beijing to cut tariffs on Canadian rapeseed, known locally as canola, by March 1.

The shift would ease a rift that has effectively shut Canadian canola out of one of its most important markets.

At the same time, Canada is offering China a limited pathway for electric vehicle exports into the Canadian market, signalling a broader attempt to lower tensions while keeping sensitive domestic sectors in mind.

Canola tariffs could fall by March 1

Carney said Canada expects China to lower tariffs on Canadian canola seed by March 1 to a combined rate of about 15%.

He also said China will suspend duties on other farm products, including canola meal and lobsters.

The move follows months of talks aimed at mending ties after a series of trade actions on both sides.

China had previously imposed heavy penalties on Canadian canola and related products, leaving exporters with fewer options and adding pressure as supplies stayed ample.

The final decision on levies tied to China’s investigation has also been extended until March 9.

A market worth billions has been frozen

The canola dispute has carried an outsized cost for Canada’s crop sector.

The tariffs effectively closed the Chinese market to Canadian canola and its products, freezing trade valued at C$4.9 billion ($3.5 billion) in 2024.

That shutdown has weighed on growers and exporters, particularly as alternative destinations have been limited.

If China follows through with the planned reductions and suspensions, the deal could reopen trade routes that were a major source of demand before the dispute escalated.

Carney also described China as a $4-billion canola seed market for Canada.

Canada opens a narrow door to Chinese EVs

The agreement also includes a major adjustment to electric vehicles.

Carney said Canada will initially allow up to 49,000 Chinese EVs into its market at a tariff of 6.1% on most-favoured nation terms.

He did not specify a time period.

This would mark a sharp shift from the 100% tariff Canada imposed on Chinese EVs in 2024, under former Prime Minister Justin Trudeau, after similar penalties by the US. In 2023, China exported 41,678 EVs to Canada.

Trudeau defended the 2024 tariff by pointing to advantages Chinese manufacturers gain through state subsidies, which Ottawa argued threatened the domestic industry.

The 2024 measures also included tariffs on Chinese steel and aluminium.

Pressure rises as Canada diversifies away from the US

Carney has been pushing to reduce Canada’s reliance on the US after President Donald Trump imposed sweeping tariffs.

Canada is now working to strengthen ties with its second-largest trading partner after the US, following months of diplomatic efforts.

China’s retaliation to Canada’s 2024 actions included tariffs on more than $2.6 billion of Canadian farm and food products last March, followed by tariffs on canola seed in August.

That contributed to a 10.4% slump in China’s 2025 imports of Canadian goods.

Carney said Canada expects canola meal, as well as lobsters, crabs, and peas, to be freed from anti-discrimination tariffs from March 1 until at least year-end.

He added that the deals could unlock nearly $3 billion in export orders.

“In terms of the way our relationship has progressed in recent months with China, it is more predictable, and you see results coming from that,” Carney said when he was asked if China was a more predictable partner than the US.

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US equity markets stumbled midday for the second consecutive session on Wednesday, with major indices retreating from their recent record highs as investors grappled with disappointing corporate earnings guidance.

Moreover, escalating geopolitical tensions in Iran and an unexpected delay in the Supreme Court’s ruling on Trump’s tariffs also weighed on the sentiment.

The S&P 500 dropped roughly 1.1%, the Nasdaq fell 1.6%, and the Dow Jones Industrial Average shed 333 points, erasing early gains and signaling growing caution.​

US stocks midday: Market snapshot and sector movers

The broad selloff reflected a shift in market sentiment.

Tech stocks bore the brunt of the decline, with semiconductor heavyweights like Nvidia, Broadcom, and Arm Holdings each falling 2% or more as investors worried about China supply disruptions amid rising geopolitical tensions.

The financial sector, despite mixed earnings results from major banks, also stumbled.

Bank of America reported a quarterly profit of $0.98 per share, beating analyst expectations, yet shares fell roughly 5% over concerns about future net interest income guidance.

Wells Fargo’s stock declined after the bank missed on fourth-quarter revenue and disappointed on net interest income projections due to severance costs from workforce reductions.​

Consumer staples, utilities, and healthcare outperformed. Energy and materials gained ground as oil prices and precious metals rallied on geopolitical anxiety.

The session marked the second loss in a row after markets had achieved record highs just days earlier.

Why investors pulled back?

The earnings backdrop set a high bar for corporate America.

Investors, spooked by elevated valuations and uncertain economic conditions, are demanding not just beats but compelling forward guidance.

Bank earnings opened the season on a mixed note: some companies beat on profitability but cautioned on future revenue growth, a pattern that weighed on bank stocks overall.​

The more immediate trigger for today’s decline, however, was geopolitical escalation in Iran.

President Trump announced a 25% tariff on any nation conducting business with Iran and escalated military rhetoric, suggesting potential US intervention in civil unrest there.

The market responded by pricing in oil-supply disruption risk.

Brent crude surged to nearly $65 per barrel, the highest since mid-November, after gaining 9% over the previous four trading sessions.

West Texas Intermediate crude climbed to $60.60 per barrel.

Analysts estimate that roughly $3 to $4 per barrel of the current oil price is driven by what’s known as “geopolitical risk premium,” reflecting the possibility that Iranian crude exports could be disrupted.​

The risk-off sentiment extended beyond oil.

Gold and silver prices reached record levels as investors sought traditional safe havens. Bond prices rallied, pushing the 10-year Treasury yield down 4 basis points.

Investors were also purchasing protection via put options and hedges, a sign of heightened unease.​

Adding to the market’s jitters, the Supreme Court unexpectedly postponed its ruling on the constitutionality of Trump’s tariffs.

The decision could reshape trade policy and carry implications for hundreds of billions of dollars in potential refunds if the court strikes down his tariff authority.

The uncertainty left traders in limbo and investors with one fewer catalyst for clarity.

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