>>> What to look at today - 7th of May 2025

 Equity-index futures climbed as trade negotiations between China and the US spurred optimism tensions between the world’s two largest economies will ease. Futures contracts for the S&P 500 and the Nasdaq 100 both climbed 0.6% on news US and Chinese officials will meet this week in Switzerland. Asian stocks gained 0.2% - they pared earlier gains of as much as 0.7% - as China reduced its policy rate and lowered the amount of cash lenders must keep in reserve. A gauge of the dollar’s strength advanced, snapping three days of declines. Gold dropped as much as 2.1% and Treasuries fell. The Indian rupee weakened slightly and stocks in Mumbai gained 0.2% as investors looked beyond the India-Pakistan military strikes and focused on trade talks. On Tuesday, India and the UK agreed to a landmark trade deal.
The US-China meeting will be the first confirmed trade talks between the countries since President Donald Trump declared sweeping tariffs last month, led by punishing levies on China. While the announcement of talks is an indication that trade tensions may be thawing, and provided the markets with a temporary reprieve, further rallies will depend on whether the discussions produce significant outcomes. The planned talks may encourage investors eager to see a reduction in tariffs that risk crippling trade between the countries. Trump placed duties as high as 145% on many Chinese imports, and Beijing retaliated with import taxes of 125% on American goods. The moves prompted companies to withdraw earnings guidance and threatened to drive up prices for manufacturing equipment as well as day-to-day items such as clothing and toys. On Tuesday, Trump said he would dictate tariff levels and trade concessions for partners looking to avoid higher duties, appearing to move away from the idea that he would engage in back-and-forth negotiations. US Treasury Secretary Scott Bessent, in an interview on Fox News, said the current tariff rates aren’t sustainable. The talks on Saturday and Sunday will center on de-escalation rather than a big trade deal, “but we’ve got to de-escalate before we move forward,” he said. In geopolitical news, India said it conducted targeted military strikes against Pakistan, an expected move after it pledged retaliation for a militant attack last month in Kashmir that killed 26 people. Pakistan said it shot down five Indian airplanes. Meanwhile, shares in Hong Kong rose 0.5% - they pared earlier gains of as much as 2.4% - as China lowered rates. Beijing is ramping up efforts to help an economy caught in a second trade war with the US.  The People’s Bank of China cut the seven-day reverse repurchase rate to 1.4% from 1.5%, according to Governor Pan Gongsheng. The central bank will also trim the reserve requirement ratio by half a percentage point, Pan said at a briefing on Wednesday, without saying when that would be effective. Investors are also focused on Wednesday’s rate decision by the Federal Reserve, with traders expecting policymakers to stay on hold.
While Trump has been ratcheting up pressure on the central bank to resume cutting rates, officials have mostly emphasized a need to wait and see how trade policies announced last month affect the economy. US After Hours Busy earnings session; PRCH +15.1%, NRDS +13.7%, EA +6%, CRUS +5.1%, ALGT +4.4% higher on earnings; VSTS -28.2%, UPST -18.1%, ANET -6.7%, SMCI -6% lower on earnings

Macro :
- India Says It Hit Terrorist Camps in Pakistan, No Military Sites
- Nuclear-Related Shares Rally on Trump Power Order Report
- Merz’s Chancellor Vote Fiasco Raises Doubts Over Germany’s Reset
- Chinese Stocks Will Be Delighted to See PBOC Cutting RRR 0.5%

Keep an eye on :
- AD NA : Ahold Delhaize 1Q Adjusted Operating Margin Misses Estimates
- AKBRP NO : Aker BP 1Q Revenue Beats Estimates
- AMBU DC : Ambu 2Q Revenue Meets Estimates; FY Outlook Maintained
- AAD GY : Amadeus Fire 1Q Operating Ebita EU4.30M Vs. EU14.4M Y/y
- ANORA FH : Anora Group Oyj 1Q Net Sales Miss Estimates
- AKE FP : Arkema 1Q Ebitda Margin Misses Estimates
- ARCAD NA : Arcadis 1Q Net Revenue EU972M
- ARYN SW : Aryzta Plans Resuming Capital Returns Via Divs, Buybacks
- AG1 GY : AUTO1 Boosts FY Adjusted Ebitda Forecast
- CS FP : AXA 1Q Comparable Revenue +7%
- BA/ LN : BAE Keeps Expectations Unchanged
- BPSO IM : Pop. Sondrio 1Q Total Income EU419.4M Vs. EU409.2M Y/y
- CLAB SS : Cloetta 1Q Operating Profit SEK350.0M Vs. SEK193M Y/y
- COTY US : Coty Cuts FY Adjusted EPS Forecast, Beats Estimates
- DEMANT DC : Demant Lowers Guidance on Weaker Hearing Aid Growth: Street Wrap
- DIA IM : DiaSorin 1Q Adjusted Ebitda Beats Estimates
- DNB NO : DNB Bank 1Q Return on Equity Beats Estimates
- ELE SM : Endesa 1Q Net Income Beats Estimates
- FRE GY : Fresenius SE 1Q Ebit Before Special Items Meets Estimates (1)
- EQNR NO : EP Petroecuador Awards Four Export Contracts Worth $529.5M
- FDR SM : Fluidra 1Q Net Income Misses Estimates
- HARVIA FH : Harvia 1Q Adjusted Operating Profit Beats Estimates
- INTRUM SS : Intrum 1Q Revenue SEK4.28B Vs. SEK4.43B Y/y
- DEC FP : JCDecaux 1Q Organic Adjusted Revenue Beats Estimates
- JUN3 GY : Jungheinrich 1Q Ebit Beats Estimates
- JYSK DC : Jyske 1Q Pretax Profit Beats Estimates; FY Outlook Maintained
- KER FP : Kering Names New Leadership at Ginori 1735 and Brioni
- KCO GY : Kloeckner Sees 2Q Adjusted Ebitda EU60M to EU90M
- LDO IM : Leonardo Forms Aeronautics Division Headed by Stefano Bortoli
- LTMC IM : Lottomatica Maintains FY Adjusted Ebitda Forecast
- LOOMIS SS : Loomis 1Q Net Sales Meet Estimates
- MSFT US : OpenAI Plans to Slash Revenue Share to Microsoft After Restructuring
- NOS PL : NOS 1Q Revenue EU421.4M Vs. EU403.3M Y/y
- NOVOB DC : Novo 1Q Ebit Beats Estimates
- OR FP : Coty Cuts FY Adjusted EPS Forecast, Beats Estimates
- RSGN SW : R&S Group Holder Offers Shares: Terms
- RESURS SS : Resurs Holding 1Q EPS SEK0.41 Vs. SEK0.16 Y/y
- RIVN US : Rivian Cuts EV Delivery Forecast, Sees Tariffs Hurting Demand
- SCHA NO : Schibsted 1Q Ebitda Beats Estimates
- SCR FP : Scor 1Q Net Income Beats Estimates
- SHL GY : Siemens Healthineers Widens FY Adjusted EPS Forecast
- STB NO : Storebrand 1Q Pretax Profit Misses Estimates
- TOM NO : Tomra 1Q Revenue EU306M
- VLA FP : Valneva 1Q Revenue Beats Estimates
- VLK NA : Van Lanschot Kempen 1Q Total Client Assets EU166.2B
- VIE FP : Veolia 1Q Ebitda Meets Estimates
- VNA GY : Vonovia Maintains FY Adjusted Ebitda Forecast
- VNA GY : Vonovia Taps Vodafone CFO Luka Mucic to Succeed Rolf Buch as CEO
- WW US : WW International Sinks on Plan to File for Chapter 11 Bankruptcy

>>> TradeGate Pre-Market Indications

DAX:
  • BMW (BMW TH) +1.9%
    • *BMW 1Q AUTOMOTIVE EBIT MARGIN 6.9%, EST. 6.52%
  • Infineon (IFX TH) +1.3%
  • Porsche (P911 TH) +1.1%
  • Adidas (ADS TH) +1.1%
MDAX:
  • AUTO1 (AG1 TH) +4.4%
    • AUTO1 Boosts FY Adjusted Ebitda Forecast
  • Wacker Chemie (WCH TH) +3.6%
  • TeamViewer (TMV TH) +2.8%
  • Hensoldt (HAG TH) +1.7%
  • Redcare Pharmacy NV (RDC TH) +1.4%
  • Fraport (FRA TH) -0.8%
    • Fraport Cut to Sell at AlphaValue/Baader
  • Freenet (FNTN TH) -1.3%
    • Freenet Cut to Hold at HSBC; PT 36 euros
  • RTL (RRTL TH) -1.4%
SDAX:
  • Kloeckner (KCO TH) +3.7%
    • Kloeckner Sees2Q Adjusted Ebitda EU60M to EU90M
  • Deutz (DEZ TH) +1.1%
  • Schaeffler (SHA0 TH) -0.5%
  • Heidelberger Druck (HDD TH) -1.4%
  • LPKF (LPK TH) -1.9%

>>> US After Hours Summary: Busy earnings session; PRCH +15.1%, NRDS +13.7%, EA

After Hours Summary: Busy earnings session; PRCH +15.1%, NRDS +13.7%, EA +6%, CRUS +5.1%, ALGT +4.4% higher on earnings; VSTS -28.2%, UPST -18.1%, ANET -6.7%, SMCI -6% lower on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: CURI +24.5% (also increases dividend), FLYW +17.5%, PRCH +15.1%, NRDS +13.7%, ANGI +13% (also authorizes new 5 mln share repurchase program), JAMF +12.7%, EOSE +12.3%, REZI +11.7%, LITE +8.4%, KVYO +7.6%, WOW +6.7%, BL +6.6%, ATRO +6.4%, HALO +6.1%, EA +6%, ARDT +6%, PTCT +5.3%, CRUS +5.1%, KROS +4.7%, VRNS +4.5%, ALGT +4.4% (also withdrawing FY25 guidance), CDRE +3.8%, GEN +3.5%, QLYS +3.3%, ANDE +3.2%, DEI +2.9%, ACA +2.8%, SSRM +2.6%, DNLI +2.4%, OVV +2.3%, CRC +2.1%, RCUS +2.1%, CRSP +2.1%, MOS +1.9%, ET +1.5%, LOPE +1.4%, WTTR +1.3%, LCID +1.1%, CYTK +0.7%, DVN +0.6%, SU +0.6%, AMD +0.5% (also AMZN opens position in AMD), CHRD +0.4%, PRA +0.3%, HLIO +0.2%, VSEC +0.2%, FBIN +0.1%, INVX +0.1%, SAFE +0.1%, VOYA +0.1%, GPOR +0.1%

Companies trading higher in after hours in reaction to news: AVDX +18.9% (AVDX to be acquired by TPG in partnership with CPAY), BNL +3.1% (several insider buy disclosures), TWLO +2.1% (AMZN exits TWLO position), MOS +2% (successful biostimulant product launch in China), CMG +1.9% (names new COO), EXPD +1.1% (increases dividend), AMZN +1.1% (confirms new AMD position), TTI +0.9% (insider buys), LNTH +0.8% (to sell its single photon emission computed tomography business), PEP +0.6% (increases dividend), ATGE +0.1% (authorizes new $150 mln share repurchase program), CNP +0.1% (provides operational update), EXK +0.1% (commences wet commissioning at Terronera), SWX +0.1% (delays earnings report), JLL +0.1% (awarded a $165 mln US Air Force contract)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: VSTS -28.2% (hires UPS exec as its new CEO, also eliminates dividend), SRPT -20.7%, UPST -18.1% (also Fortress to purchase up to $1.2 bln of consumer loans originated on the Upstart platform), MYGN -15.1%, RVLV -10.6%, CC -9% (also announces strategic agreement with Navin Fluorine), MASI -7.1% (also to sell its Sound United consumer audio business), ANET -6.7% (also authorizes new $1.5 bln share repurchase program), RYAM -6.4%, SMCI -6%, JAZZ -5.3% (also submits a sNDA for Zepzelca), INTA -5.2%, TEM -5.2%, NCMI -5.2% (also new long-term agreement with AMC Theaters), MBC -5.1%, BKD -5%, PARR -4.8%, MRVL -4.8% (narrows 1Q26 revenue guidance range; postpones Investor Day), TDC -4.6%, POWL -3.8%, MTW -3.6%, KLIC -3.3%, ARQT -3.1%, AMTM -2.8%, COTY -2.7%, ALAB -2.6%, MCY -2.1%, EXPI -2%, MRC -1.7%, CPNG -1.4% (also authorizes new $1 bln share repurchase program), RDFN -1.4%, RIVN -1.2%, WYNN -1.2%, IFF -1.1%, MRCY -1.1%, DHT -0.9%, SUPN -0.7%, SAND -0.7%, CPAY -0.5% (also to make minority investment in AvidXchange), GO -0.5%, CRSR -0.4%, HMN -0.2%, UTL -0.1% (also to acquire Aquarion Companies)

Companies trading lower in after hours in reaction to news: LFVN -12.8% (increases dividend), NG -4.5% (43.5 mln share offering), ARQ -2.8% (announces updates to commissioning timeline), HL -0.8% (CEO discloses purchase of 14,867 shares), ALE -0.3% (files mixed securities shelf offering), AMG -0.2% (to sell its equity interest in Peppertree Capital Mgmt)

>>> Amazon discloses updated portfolio positions in 13F filing: Confirms new AMD

Amazon discloses updated portfolio positions in 13F filing: Confirms new AMD position, Exited TWLO, Maintained positions in RIVN ATSG VITL ALAB OWLT NAUT MRVL

Highlights from Q1 2025 filing as compared to Q4 2024 (all amounts are approximate):
  • New positions in: AMD (0.82 mln shares)
  • Maintained positions in: RIVN (158.36 mln shares), ATSG (12.74 mln shares), VITL (1.53 mln shares), ALAB (278K), OWLT (35K), SMRT (627K), NAUT (1.5 mln), MRVL (225K)
  • Closed positions in: TWLO (from 1.77 mln shares)

WSJ : SpaceX Gets Greenlight for More Rocket Launches in Texas

SpaceX Gets Greenlight for More Rocket Launches in Texas
Air-safety regulators said the company could launch its Starship rocket up to 25 times annually from Starbase

Key Points
  • FAA is allowing SpaceX to launch Starship up to 25 times a year from its Starbase complex in Texas, up from a previous limit of five.
  • SpaceX seeks to increase flight rates for Starship and Falcon 9 vehicles from sites in Florida and California.
  • Growing launch rates driven by SpaceX have generated pushback from communities near launch sites due to noise and environmental concerns.

SpaceX won permission to launch its massive Starship rocket more often from Texas, part of its broader push to increase flying of that vehicle and its Falcon fleet around the country.

The company will be allowed to begin launching Starship up to 25 times a year from its Starbase complex outside of Brownsville, Texas, according to the Federal Aviation Administration.

Previously, it could fly the still-experimental vehicle five times annually from the site. On Saturday, SpaceX employees and partners who live at Starbase voted to incorporate company properties into a municipality.

Led by Elon Musk, SpaceX is already the world’s busiest rocket operator, frequently lofting satellites for its Starlink internet network, rival satellite companies and government agencies.

At the Kennedy Space Center in Florida, SpaceX has looked to fly Starship from one launchpad as many as 44 times a year, according to the FAA. At a nearby Space Force site, the company wants to remake another pad to support as many as 76 Starship flights annually.

The company also is seeking permission to fly its Falcon 9 vehicle as many as 120 times each year, up from 50, from yet another Florida pad. At a military base not far from Santa Barbara, Calif., it hopes to fly the Falcon 9 and Heavy vehicles 100 times annually, or double what is allowed now with just Falcon 9, according to the Air Force.

SpaceX didn’t immediately respond to a request for comment.

Other rocket operators, including United Launch Alliance and Jeff Bezos’ Blue Origin, are also working to increase their own flight rates with new rockets, including from Florida.

Industry and government officials have talked about building up infrastructure to add capacity at Florida launch sites.

Growing launch rates, so far almost entirely driven by SpaceX, have generated pushback from some community members living near launch sites. People have made complaints about noise, environmental impacts from flights and beach closures.

WSJ : Masimo to Sell Audio Business to Harman in $350 Million Deal

Masimo to Sell Audio Business to Harman in $350 Million Deal
The company is refocusing on its core healthcare business under a new CEO

Key Points
  • Masimo is in a deal to sell its consumer-audio business to Harman International for about $350 million.
  • Masimo’s foray into consumer audio began in 2022 with the acquisition of Sound United for about $1 billion.
  • Activist investor Politan Capital Management pushed for the sale and the ousting of Masimo’s founder.

Medical-technology company Masimo MASI -0.85%decrease; red down pointing triangle is getting out of a failed foray into the consumer-audio business with a deal to sell the unit for about $350 million three years after making a $1 billion bet on audio equipment.

A soured deal
Harman International, a Samsung Electronics 005930 -2.16%decrease; red down pointing triangle subsidiary that makes JBL products and other audio and visual equipment, is set to buy Masimo’s audio operations in a deal that was announced Tuesday, confirming an earlier report from The Wall Street Journal.

The transaction would mark the end of a three-year experiment for Masimo that sent its stock plunging, drew in an activist investor and led to the ousting of its founder and chief executive officer.


In 2022, Masimo agreed to acquire Sound United, a high-end audio company whose brands include Bowers & Wilkins and Denon, for about $1 billion.

The deal was a bid by Masimo founder Joe Kiani to reach more retail channels such as Best Buy. The company’s main focus is making medical devices ranging from pulse oximeters to monitors for brain function as well as other health-focused wearables that offer consumers real-time data.

Wall Street and investors reacted poorly to the idea, shaving roughly $5 billion off Masimo’s market value in one day. The company is now worth around $9 billion.

An activist arrives
After the Sound United transaction, activist investor Politan Capital Management revealed a big stake in Masimo and began demanding changes.

Politan won a pair of board seats at Masimo’s 2023 annual meeting, including one for its founder Quentin Koffey. But it wasn’t enough. The firm returned again last year, seeking more board seats and a sharper focus on healthcare. Politan wanted to get rid of Sound United.

Koffey’s firm won two more board seats last fall and forced out Kiani.

Masimo in February appointed Katie Szyman CEO, and has been pursuing a fresh strategy. The stock is up almost 50% since Politan won its fight in September while the S&P 500 is down over the same period.

“Since I took over as CEO, a key objective has been refocusing our business to ensure we are allocating time and resources to areas of unmet clinical need,” Szyman said.

The Masimo deal adds to a strong start to the month of May for mergers and acquisitions. Already this week, a number of big transactions have been signed up, including Skechers selling the comfy sneakers brand to 3G Capital in a $9.4 billion deal, defying a recent slowdown in dealmaking with President Trump’s trade war.

FT : Brussels seeks to force EU companies to disclose Russian gas contracts

Brussels seeks to force EU companies to disclose Russian gas contracts
European Commission will propose rules next month requiring contract details to be shared with energy and security authorities

The European Commission plans to force EU companies to reveal details of their Russian gas contracts, as it seeks to crack down on fuel imports from the country by 2027.

Companies will be required to disclose the volume and duration of any gas contracts held with Russia to the EU executive, and to national energy and security authorities, under rules to be proposed next month, the commission said on Tuesday.

“These measures would give governments and the commission access to relevant information on Russian gas entering their energy systems, allowing the implementation of EU-wide targeted and effective measures and prepare alternative supplies,” the commission said.

The plan aims to help the EU phase out the last of Russian fuel in its system by 2027.

By the end of that year, the EU would be “completely free of Russian gas”, EU energy commissioner Dan Jørgensen said. “This is not a small thing, this is not without challenges but it can be done and we will deliver in a gradual and co-ordinated way,” he added.

Other measures include the prohibition of spot market contracts by the end of this year and long term contracts by the end of 2027.

The commission insisted that enough additional gas capacity would be coming online elsewhere in the world from next year to compensate for the loss of Russian fuel. The EU has said it would be willing to buy more US liquefied natural gas as a concession to President Donald Trump.

In order to legislate for the ban, Jørgensen said the EU executive had found a way for companies to invoke ‘force majeure’ clauses in their contracts that would not involve sanctions, which require unanimous approval from member states.

Hungary and Slovakia’s pro-Russian governments have regularly opposed gas sanctions, citing potential hikes in energy costs.

Slovakia’s deputy prime minister and minister of economy, Denisa Saková, said on Tuesday the country did not agree with the plan and that it was “fundamentally opposed to the European Commission preparing measures that damage not only our national interests and the purchasing power of Slovak households, but also the whole of Europe”.

Slovakia and Hungary are still heavily reliant on Russian fuels. Russian oil makes up about 80 per cent of supplies going to the two countries.

Russian gas makes up 13 per cent of the EU’s overall imports, despite efforts to sever dependence on Russian fuels since Moscow’s full-scale invasion of Ukraine in February 2022. Oil imports from Russia, which have been largely sanctioned, have dropped to about 3 per cent of the EU’s total supply. Before 2022, these were about 26 per cent.

A gas industry executive said that the commission’s document was “more ambitious” than expected. While the overall plan seemed positive, the executive questioned the legal basis for banning spot or long-term gas contracts.

Andreas Guth, secretary-general of industry body Eurogas, said gas companies “will of course comply”.

The commission has also proposed trade measures on imports of enriched uranium, such as tariffs or levies, and increased efforts to crackdown on Russia’s shadow fleet of oil tankers.

It said it would push member states to phase out supplies of Russian nuclear fuel, fuel services and spare parts from Russia and replace them with “fully European” alternatives.

Nucleareurope, an industry body, said “efforts have already been made to reduce our dependence on Russian fuels and components” and called for “long term visibility and EU support” to build up supply chains in Europe.

FT : Czech court halts $18bn nuclear reactor deal after rival complaint

Czech court halts $18bn nuclear reactor deal after rival complaint
France’s EDF successfully halts Prague’s purchase of two South Korean-made units

A court has halted the Czech government’s $18bn purchase of two South Korean-made nuclear reactors after an eleventh-hour complaint from rival bidder EDF. 

Executives from Korea Hydro & Nuclear Power, a subsidiary of state-run Kepco, were due to travel to the central European country on Wednesday to sign contracts after beating France’s EDF and Westinghouse of the US to the deal last year. 

The new reactors would represent South Korea’s first major overseas nuclear power project since a $20bn contract to build four nuclear plants in the United Arab Emirates more than 15 years ago. 

However, EDF last Friday filed a lawsuit to block the contract after losing an appeal with the Czech Republic’s antitrust watchdog, and a regional court on Tuesday said it had issued a “pre-emptive ruling” to stop the signing.

The deal cannot now be signed until the court passes verdict on the case.   

French state-owned EDF is concerned by the precedent set by the Czech deal, as the Korean business plans to bid aggressively for several other projects across Europe.

It has started talks with Finland, Sweden and the UK, as more countries turn to nuclear to help them transition away from fossil fuels.

EDF’s completed and ongoing projects in Europe, including the UK’s Hinkley Point C and Finland’s Olkiluoto 3, have been hit by delays and significant cost overruns.

Kepco and the trade ministry in Seoul estimated Korea’s cost to build a nuclear power plant at $3,571 per kilowatt as of 2021, much lower than $7,931 for France and $5,833 for the US.

KHNP is due to build two units at the Dukovany nuclear plant operated by state-run ČEZ Group. The Czech Republic relies on nuclear power for 40 per cent of its electricity.

Petr Fiala, Czech prime minister, wrote on social media platform X that he acknowledged the court’s decision, but also that his government was “convinced the bid process was conducted correctly and in accordance with applicable laws”. 

ČEZ did not immediately respond to a request for comment. 

EDF welcomed the postponement, saying it “provides the necessary time for a thorough assessment of any potential infringement of its rights”.

It said it was “fully committed to pursuing all legal actions”, including an ongoing probe with the European Commission through its recently created Foreign Subsidies Regulation, adding that these proceedings “have been intensified in the last few days”.

It also said it expected the legal proceedings to help create a “significant localisation” that would lead to more local jobs being created by the project.

FT : Donald Trump says US will stop bombing Houthis in Yemen

Donald Trump says US will stop bombing Houthis in Yemen
US says rebel group has agreed to halt its attacks on regional shipping in the Red Sea

Donald Trump said the US would stop its bombing campaign against Houthi rebels in Yemen in response to assurances from the Iranian-backed group that it would halt its attacks on ships in the region.

“The Houthis have announced . . . or they’ve announced to us, at least, that they don’t want to fight any more,” the US president said. “They just don’t want to fight, and we will honour that, and we will stop the bombings, and they have capitulated.”

Trump, who ordered expanded military strikes against the Houthis in March, made the surprise announcement as he met Canadian Prime Minister Mark Carney at the White House on Tuesday.

It came hours after Israel bombed the airport in Sana’a, the Yemeni capital which is controlled by the Houthis, destroying its runway and aeroplanes. That was in retaliation for a Houthi missile that exploded close to Israel’s Ben Gurion airport near Tel Aviv on Sunday.

A person familiar with the matter said the Israeli government was not notified in advance and was “surprised” by Trump’s announcement.

And Yemeni analysts said there was no sign of a public announcement in which the group had said it would no longer attack shipping.

Oman appears to have been an intermediary in the US-Yemeni deal, with foreign minister Badr Albusaidi posting on X that “contacts conducted by the Sultanate of Oman with the United States and the relevant authorities in Sana’a, in the Republic of Yemen . . . have resulted in a ceasefire agreement between the two sides”.

The Omani government is also facilitating talks between the US and Iran.

US secretary of state Marco Rubio said ending the bombing was “always a freedom of navigation issue”. “These are a band of individuals with advanced weaponry that were threatening global shipping and the job was to get that to stop. And if it’s going to stop, then we can stop,” he added.

Tammy Bruce, state department spokesperson, said the deal envisaged that “in the future, neither side will target the other, including American vessels in the Red Sea and the Bab al-Mandab Strait, ensuring freedom of navigation and the smooth flow of international commercial shipping”.

The Houthis began firing missiles and drones at merchant vessels in the Red Sea, one of the world’s key maritime trade routes, after Israel launched its offensive in Gaza following Hamas’s October 7 2023 attack.

The group, which has been one of the most active members of Iran’s so-called axis of resistance, said it was acting in solidarity with the Palestinians and opposing Israel.

The militants halted their attacks after Israel and Hamas agreed to a fragile ceasefire in January. But they threatened to resume them after Israeli Prime Minister Benjamin Netanyahu’s government broke the ceasefire in March and renewed its offensive in Gaza.

Trump then authorised the most intense US bombing campaign in a decade, as he warned the Houthis that “hell will rain down upon” them if they attacked shipping in the Red Sea.

In the weeks since, the US military says it has been operating “24/7” against the rebels, hit more than 800 Houthi targets and killed “hundreds” of fighters.

But the battle-hardened group, which controls most of Yemen’s populous north, says it has shot down multiple US Reaper drones, attempted attacks on US naval vessels and fired more than a dozen missiles at Israel.

Mohammed Albasha, a Yemeni analyst and founder of the Basha Report, a US-based risk advisory, said if the US ends its operations against the rebels, “it’s very likely the Houthis will not retaliate”.

“Whether they’ve formally conveyed this to the Trump administration is unclear, but the practical dynamic seems straightforward — if the US stops hitting them, they’ll stop firing back,” Albasha said.

“That said, in light of the intense air strikes over the past 24 hours . . . and with Israeli military operations in Gaza still ongoing, it’s highly unlikely the Houthis will cease their attacks on Israel or shipping linked to it any time soon.”

Trump always insisted the military operation against the Houthis was to restore navigational freedom to the region’s waters.

But he also used it to sending a warning to Iran ahead of talks on its nuclear programme, saying he would hold Tehran responsible for “every shot” fired by the rebels and that the Islamic republic would face “dire” consequences for any attacks by the militants.

The Trump administration has since held three rounds of indirect talks with Iran over its expansive nuclear programme.

Next week, the US president is scheduled to travel to the oil-rich Gulf, with stops in Saudi Arabia, Qatar and the United Arab Emirates. Riyadh and Abu Dhabi intervened in Yemen’s civil war in 2015 to fight the Houthis and supported the ousted Yemeni government.

But Saudi Arabia has sought to extricate itself from the conflict since agreeing to a fragile truce with the Houthis in 2022.