Germany's Merz Secures Long-Awaited Trump Meeting on June 5
German Chancellor Friedrich Merz will travel to Washington for his inaugural meeting with US President Donald Trump next week, almost a month after starting his term leading Europe's largest economy.
The 69-year-old conservative, who became Germany's chancellor on May 6, will meet the US leader at the White House on June 5, government spokesman Stefan Kornelius said in an emailed statement on Saturday.
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Stocks fall over trade row; oil rises on geopolitical risks
Oil prices surged Monday over renewed concerns about Russia's war in Ukraine and relief over OPEC+ production, while stock markets mostly slumped as US-China trade tensions resurfaced. The dollar was under pressure while Wall Street opened mixed, with the Dow and the broad-based S&P 500 in the red while the tech-heavy Nasdaq rose. European stock markets were down in afternoon deals. US President Donald Trump reignited tensions with China last week when he accused the world's second-biggest economy of violating a deal that had led both countries to temporarily reduce huge tit-for-tat tariffs. Beijing rejected the "bogus" US accusations on Monday and accused Washington of introducing "a number of discriminatory restrictive measures" against China since they agreed on a truce last month. Trump also ramped up tensions with other trade partners, including the European Union, by vowing to double global tariffs on steel and aluminium to 50 percent from Wednesday. "Trump's pledge to double steel and aluminium import tariffs have caused fresh uncertainty, especially with the European Union vowing to retaliate against the measures," said Susannah Streeter, head of money and markets at Hargreaves Lansdown. "Negotiations between the US and China also appear to be in disarray." The European Union on Saturday said it "strongly regrets" the tariffs move by Trump, warning it "undermines ongoing efforts to reach a negotiated solution" with the United States. The EU added it stood "ready" to retaliate. The two sides are set for talks on the sidelines of an OECD ministerial meeting in Paris on Wednesday. A US trade court ruling against the tariffs last week briefly buoyed the markets, but the decision was frozen pending an appeal and the Trump administration insisted that the levies would not go away. "Overall, it feels as if investors are wary of adding to their exposure until they get more clarity on trade and tariffs," said David Morrison, senior market analyst at financial services firm Trade Nation. The Hong Kong and Tokyo stock markets both ended with sizeable losses Monday. Shanghai was shut for a Chinese public holiday. Oil prices surged, with the main US contract, WTI, briefing jumping by five percent. The surge came after producers' grouping OPEC+ agreed on a smaller-than-expected increase in crude production. "Traders had feared that OPEC+ would announce a significantly larger increase in production," Morrison said. "Prices were also lifted by the increased military activity between Ukraine and Russia reported over the weekend. In addition, there were reports that the US may impose stricter sanctions on Moscow, and this helped boost prices." Ukraine said on Sunday that it hit dozens of strategic Russian bombers parked at airbases thousands of kilometres behind the front line. Traders were also monitoring tensions over Iran's nuclear programme after Tehran said it would not accept an agreement that deprives it of what it calls "peaceful activities". - Key figures at around 1340 GMT - New York - Dow: DOWN 0.5 percent at 42,078.72 points New York - S&P 500: DOWN 0.2 percent at 5,902.75 New York - Nasdaq Composite: UP 0.3 percent at 19,173.37 Paris - CAC 40: DOWN 0.5 percent at 7,712.71 Frankfurt - DAX: DOWN 0.4 percent at 23,902.91 London - FTSE 100: DOWN 0.1 percent at 8,764.74 Tokyo - Nikkei 225: DOWN 1.3 percent at 37,470.67 (close) Hong Kong - Hang Seng Index: DOWN 0.6 percent at 23,157.97 (close) Shanghai - Composite: Closed for a holiday Euro/dollar: UP at $1.1412 from $1.1349 on Friday Pound/dollar: UP at $1.3537 from $1.3463 Dollar/yen: DOWN at 143.00 yen from 143.97 yen Euro/pound: UP at 84.42 pence from 84.30 pence Brent North Sea Crude: UP 4.0 percent at $65.26 per barrel West Texas Intermediate: UP 4.2 percent at $63.35 per barrel burs-bcp-lth/rlp
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Stock market today: Dow, S&P 500, Nasdaq slip as US-China trade tensions flare up again
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The Institute for Supply Management's (ISM) manufacturing PMI registered a reading of 48.5 in May, up from April's reading of 48.7. Readings above 50 for this index indicate an expansion in activity, while readings below 50 indicate contraction. The manufacturing sector has been in contraction for most of the past two years. The import index tumbled to a reading of 39.9, its lowest level since 2009. 'Imports continue to contract as demand has reduced the need to maintain import levels from previous months, as well as due to the impact of tariff pricing,' Susan Spence, chair of the ISM Manufacturing Business Survey Committee, said in the release. A separate reading on manufacturing activity from S&P Global, also released on Monday, registered a reading of 52, up from a prior reading of 50.2. But S&P global chief business economist Chris Williamson wrote in the release the headline data "masks worrying developments under the hood" of the US manufacturing sector. "While growth of new orders picked up and suppliers were reportedly busier as companies built up their inventory levels at an unprecedented rate, the common theme was a temporary surge in demand as manufacturers and their customers worry about supply issues and rising prices," Williamson wrote. US stocks pulled back on Monday after China added fuel to simmering trade tensions with the US, setting investors on guard as they turned the page on a bullish May. The Dow Jones Industrial Average (^DJI) fell around 0.4%, or around 170 points. The S&P 500 (^GSPC) declined nearly 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) ticked lower by about 0.2%. Several biotech stocks jumped ahead of the opening bell: BioNTech (BNTX) stock popped 12% on news of a new cancer drug deal. Bristol Myers Squibb (BMY) announced it will pay the German biotech company $11.1 billion to license a next-generation cancer drug as it looks to compete with Merck (MRK) and its drug Keytruda. Moderna (MRNA) stock added more than 3% in premarket trading after the FDA approved its COVID-19 vaccine for individuals 65 and older and those ages 12-64 with an underlying condition. Blueprint Medicines (BPMC) soared 26% after Sanofi (SNY) agreed to acquire the company for as much as $9.5 billion in a deal expected to close in the third quarter. The acquisition adds Blueprint's Ayvakit drug to Sanofi's portfolio, boosting its rare immunology profile. Sanofi stock edged lower. Check out more trending stocks here. Shares of US steelmaker Cleveland-Cliffs (CLF) soared as much as 26% in premarket trading Monday while foreign steel stocks slumped. The moves came after President Trump announced on Friday that steel and aluminum tariffs would double from 25% to 50% starting June 4. US-based Nucor (NUE) and Steel Dynamics (STLD) also popped more than 10% in premarket trading. Shares of US Steel Corporation (X), which is being taken over by Nippon (NPSCY), fell slightly. South Korean steel stocks Posco (PKX) and Hyundai Steel ( also dropped 1.5% and 2.6%, respectively. Reuters reports that Hyundai Steel announced a plan to build a $5.8 billion factory in Louisiana, but the factory will not open until 2029. Tesla's (TSLA) sales in Norway soared over 200% in May, thanks to strong deliveries of the revamped Model Y — but elsewhere in Europe, the EV maker's sales rout continues. Cratering demand has turned up the heat on CEO Elon Musk, who has pledged to be "super focused on Tesla" as he quits his DOGE role and returns to the office, as my colleague Pras Subramian reports. Shares in Tesla slid 1.6% in pre-market trading as investors absorbed the latest negative data. Reuters reports: Read more here. Crude oil futures jumped on Monday after OPEC+ decided to hike output in July at a lower rate than traders had feared. The group of leading oil producers agreed on Saturday to add 411,000 barrels a day of supply next month, the same level of increase as for May and June. West Texas Intermediate (CL=F) climbed about 4% to $63.25 a barrel. International benchmark Brent (BZ=F) crude futures rose 3.7% to $65.07. Bloomberg reports: Read more here. Earnings: The Campbell's Company (CPB) Economic data: S&P Global US manufacturing PMI (May final); ISM manufacturing (May); ISM prices paid (May); Construction spending (April) Here are some of the biggest stories you may have missed over the weekend and early this morning: May jobs report, Trump tariff updates: What to know this week China accuses US of 'violating' trade truce, vows to hit back Why the 'TACO' trade may have run its course The Lone Star State — and Trump — versus BlackRock Tesla execs questioned Musk after he denied killing $25K EV project Analysts' bullish reviews mask weak conviction in US stock rally Fed's Waller breaks ranks, sees path to rate cuts this year Gold climbs as geopolitical and trade tensions rise Trump moves to lift Biden-era curbs on Arctic oil drilling Yahoo Finance's Alexandra Canal reports: Read more here. Stock markets in Germany and elsewhere are staging a world-beating rally, far outperforming the S&P 500 (^GSPC) this year as President Trump's trade-war push to boost US fortunes apparently backfires. Bloomberg reports: Read more here. Asian stocks fell on Monday, weighed down by escalating geopolitical tensions and fresh trade friction between the US and China. Hong Kong's Hang Seng Index (^HSI) led regional losses, sinking 2.2% as renewed sparring between Beijing and Washington spooked investors. Markets in mainland China were closed for a public holiday, but a doubling of steel tariffs to 50% due to take effect Wednesday is set to hit markets as they reopen Tuesday. Elsewhere in Asia, Japan's Nikkei 225 (^N225) declined 1.4%, South Korea's Kospi (^KS11) shed 0.3% and Australia's S&P/ASX 200 (^AXJO) edged down 0.2%. Sign in to access your portfolio
Yahoo
16 minutes ago
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Retailers shift supply chains to reduce risks from Trump's tariffs on China
A number of retailers are working to reduce their exposure to China as President Donald Trump's trade war with the second-largest economy rages on. In recent earnings reports, executives have indicated that they are restructuring their supply chains to reduce reliance on China and mitigate the impact of tariffs. Trump sees tariffs as a way to boost domestic manufacturing, but avoiding China is challenging, and many retailers have already warned of potential price increases. China has been a significant target of Trump's levies, with the U.S. slapping tariffs of 145% in April before temporarily reducing them to 30% for about 90 days as part of a temporary agreement with China. However, Trump accused China of violating its temporary agreement, according to a Friday post on Truth Social. Trump Tariffs Face Legal Battle As Federal Appeals Court Temporarily Blocks Trade Ruling "The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!" Trump wrote, without explaining how China violated the agreement. Read On The Fox Business App As tensions escalate, Macy's CEO Tony Spring told analysts on its earnings call Wednesday, the company is continuing to diversify the countries of origin for its private and national brands. At the end of last fiscal year, Spring said about 20% of total Macy's, Inc. products originated in China. National brands, which represent the majority of its sales, sourced approximately 18% from China and its private brands, where it has more direct control of the supply chain, sourced roughly 27% from China. That's down from 32% last year and a rate of more than 50% pre-pandemic, according to Spring. Best Buy Lowers Revenue Outlook For Fiscal Year 2026 Due To Tariffs Gap CEO Richard Dickson also told analysts on its earnings call last week that while China used to be one of the top sourcing countries for its products, it represented less than 10% of its sourcing last year. He expects that number to drop to less than 3% following the close of fiscal year 2025. "Most other countries represent less than 10%. Vietnam and Indonesia represented 27% and 19% of our sourcing last year, respectively, and our goal is for no country to account for more than 25% by the end of 2026," Dickson said. Dickson said the retailer is also planning to double its vendor sourcing of American-grown cotton in 2026. "Today, we are much better equipped to handle complex headwinds because we have a stronger financial foundation, and we are operating with greater discipline, growing brand momentum, and improved platform capabilities," he added. Target Chief Commercial Officer Rick Gomez told analysts on a recent earnings call that about 60% of its products were coming out of China in 2017. Today, it's around 30%, though Gomez said "we are well on our way to be less than 25% by the end of next year." "Our teams have been working very hard to offset the vast majority of the tariffs. And we're doing that because – or are able to do that because – of Target's size and scale, our [mixed] category business, which gives us flexibility, the productive partnerships that we have built with our vendors and suppliers and then our best-in-class global sourcing team has put us in a good position to be able to navigate these tariffs." Gomez said. He added that the company is "expanding into new countries, Asia as well as the Western Hemisphere, but I think it's important to note that we're also exploring opportunities here in the U.S." Apple's Tim Cook told analysts during its May earnings call that the majority of iPhones sold in the U.S. during the June quarter will have been produced in India. Vietnam will be the country of origin for almost all iPad, Mac, Apple Watch and AirPods products sold in the U.S. for the quarter, he said. Still, Cook said China would continue to be the country of origin for the vast majority of total product sales outside the U.S. Walmart CEO Doug McMillion told analysts during its May earnings call that he believes the company is positioned well relative to competitors, given that it has been working for years "to try and make sure that we've got surety of supply, we're sourcing from the right places, create a more flexible supply chain, and we've made progress on that." Nearly two-thirds of Walmart's U.S. spending goes toward products made, assembled or grown in the U.S., but the remaining third comes from around the world, with China and Mexico being the largest contributors. The nation's largest private employer has repeatedly warned that price increases are likely, especially given the magnitude of the tariffs. Earlier this year, the chief executives of Target and Best Buy also warned that tariffs against key trading partners will put pressure on profits and could drive up prices for consumers. Meanwhile, Trump faces legal challenges over implementing tariffs. One court ruled the president overstepped his authority by implementing sweeping tariffs. A federal appeals court on Thursday allowed Trump's tariffs to remain in effect temporarily after an appeal from the administration. In the Thursday decision, the U.S. Court of Appeals for the Federal Circuit granted an immediate administrative stay to the extent that permanent injunctions entered by the Court of International Trade on Wednesday are temporarily stayed until at least June 9, when the court will hear arguments. After June 9, the court can issue an order of enforcement. If it does, the administration will likely seek relief from the Supreme Court. FOX Business' Greg Wehner and Bill Mears contributed to this report. Original article source: Retailers shift supply chains to reduce risks from Trump's tariffs on China
