British Prime Minister Keir Starmer leaves Downing Street in London, England, on February 2, 2026.
Alicia Abodunde | Getty Images News | Getty Images
Hello, my name is Katie Foley from London. Welcome to another edition of CNBC’s Daily Open.
Three world leaders, three pressure cooker situations. This week is shaping up to be a very influential week for US President Donald Trump, Chinese President Xi Jinping, and British Prime Minister Keir Starmer.
US leaders are in a tough spot over Iran after rejecting Tehran’s counter-offer to end the 10-week war. President Trump’s planned visit to Beijing this week for talks with his Chinese counterpart has already been postponed once over concerns that Iran would overshadow other important agenda items, such as tariffs and rare earths.
And it’s all coming to a head for British leader Keir Starmer, who is in trouble after Labor’s disastrous local election defeat, its worst defeat in decades.
What you need to know today
US President Donald Trump has rejected as “totally unacceptable” Iran’s counter-offer to end the 10-week Middle East war, while vowing Tehran “will never give in”, prolonging the standoff that has blocked the Strait of Hormuz and rattled global energy markets. Israeli Prime Minister Benjamin Netanyahu said Sunday that the United States and Israel are still aiming to end Iran’s nuclear ambitions and that the war with Iran is “not over.”
Oil prices are rising, taking advantage of last week’s decline. While Asian markets are diverging with South Korea’s Kospi setting a new record, markets elsewhere are mixed and fairly subdued, with sentiment reflected in futures in the US and European markets.
In the UK, lb Keir Starmer is under some pressure today as he fights for his political life with a high-stakes ‘reset’ speech after the ruling Labor party suffered a crushing defeat in local elections. But it may be too little, too late. Former minister Catherine West said she would launch a leadership challenge today unless ministers come forward to challenge Mr Starmer.
On the data front, consumer and producer inflation in China rose more than expected in April as commodity prices rose due to the Middle East conflict. Export growth also accelerated in April as factories raced to fill a wave of overseas orders from buyers looking to stockpile parts due to concerns that the Iran war would further raise global input costs.
This week’s summit between President Donald Trump and China’s Xi Jinping is likely to focus on the Iran war, reducing the scope for resolving issues such as tariffs and rare earth supplies. The US leader will arrive in Beijing on Wednesday night, with an opening ceremony and bilateral talks scheduled to take place the next morning.
And on the revenue front, Saudi Aramco on Sunday reported a 26% year-on-year increase in first-quarter profit, beating analyst expectations as a key pipeline bypassing the blocked Strait of Hormuz reached full capacity.
— Katie Foley
And finally…
Whiskey business: Investors hope Trump lifts Scotch tariffs after three disastrous years
President Donald Trump’s decision to eliminate a 10% tariff on Scotch whiskey exports to the United States could bring relief to the beleaguered industry and give a much-needed boost to premium cask investment, a niche part of the industry.
Cask investing involves purchasing oak barrels filled with Scotch, either immediately after the spirit has been distilled or already aged, and allowing the contents to age for 10 to 20 years before selling.
Barrels are typically traded within the industry through separate contracts between blenders and distillers, often involving barrel exchanges rather than money, or through specialist Scotch whiskey brokers. Private investors can also purchase barrels of freshly distilled Scotch whiskey or aged Scotch whisky, either for personal use or as a speculative bet with the intention of selling it at a profit on the secondary market.
— Hugh Leask
