GM

The Bank of Japan raised its policy rate 25bp to 1% — a 31-year high — as widely expected, and confirmed a pause in JGB tapering from April 2027 while flagging upside inflation risk; the yen reaction was muted with USD/JPY holding above 160. Goldman Sachs cut its Q4 2026 Brent forecast to $80/bbl and its 2027 average to $75, citing faster-than-expected Hormuz reopening following the US-Iran deal. China's May data showed industrial output beating estimates at +4.5% y/y but retail sales posted their first annual decline since the pandemic at -0.6%, with fixed asset investment and property investment also deteriorating.

General Motors is in unfinalized talks with Lockheed Martin to manufacture components for weapons systems, including missiles and interceptors, as the Pentagon seeks non-traditional suppliers to replenish depleted munitions stocks. The arrangement would expand GM's existing GM Defense subsidiary and leverage idle automotive factory capacity, though analysts note limited parts overlap between automotive and weapons supply chains. The discussions are part of a broader trend of automakers entering defense production, with Ford, Volkswagen, and Mercedes-Benz also in similar conversations.

Nearly 1,000 UAW workers at a Michigan supplier plant that manufactures parts for General Motors pickup trucks walked off the job Monday after failing to reach a new contract agreement. The strike threatens production of GM's truck lineup, which is a key revenue driver for the automaker. No timeline for resumed negotiations has been reported.

General Motors is laying off hundreds of salaried IT employees as part of a cost-cutting initiative. The company is also evaluating its broader IT needs as part of the restructuring. No specific financial figures or timeline for the cuts were disclosed.

Trump announced via Truth Social that he has given the EU a deadline of July 4 (the U.S. 250th birthday) to fulfill the Turnberry trade agreement, threatening an immediate jump to significantly higher tariffs if the deadline is missed. This follows Trump's May 1 announcement raising EU auto tariffs to 25% under Section 232, which the EU disputed. The EU has maintained it is in compliance with the existing agreement, and the situation remains unresolved.

President Trump announced via Truth Social that tariffs on European cars and trucks entering the US will increase to 25% next week, citing insufficient progress on a trade deal. US stocks dipped modestly on the news but remained in positive territory, while the US dollar moved slightly higher. The announcement comes in the context of a Supreme Court ruling that prior tariffs were unconstitutional, with an estimated $160 billion repayment liability.

GM CEO Mary Barra acknowledged that the Iran conflict is contributing to cost increases for the automaker, but noted that vehicle mix and customer spending have remained healthy so far. The company is actively monitoring consumer behavior for any signs of demand softening. High-priced vehicles continue to sell, suggesting no immediate deterioration in GM's revenue mix.