Honduras Presidential Rival Vows to Embrace US, Rebuff China
The markedly pro-US platform of the conservative presidential hopeful would undo the leftist policies of incumbent president Xiomara Castro, reinforcing a right-wing lurch across Latin America. Rather than condemn the Trump administration's deportations of migrants as Castro has done, Asfura is promoting a full-throated embrace in the name of economic opportunity.
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Yahoo
8 minutes ago
- Yahoo
Markets want a rate cut but the Fed faces a tough choice, says a chief investment officer
Cracks are forming in an otherwise resilient economy, and the Federal Reserve could soon face a no-win choice. 'The market wants to see a rate cut in September,' Brent Schutte, chief investment officer at Northwestern Mutual, said on Yahoo Finance's Opening Bid. Although the Fed is widely expected to leave rates unchanged at its July 30 meeting, Schutte says the bigger question is whether policymakers will pivot toward easing later this year. Market has currently assign a rough 58% probability to a September rate cut, making it a near 'coin toss.' Despite the uncertainty, retail investors continue to pour money into equities, fueling market gains. Schutte points to an 'insatiable appetite' among this group, which could help cushion markets even if Fed signals disappoint. If expectations for a cut keep building, markets will likely rally. But if the Fed leans away from easing, a modest pullback could follow. According to Schutte, the Fed, like markets, remains uncertain about the economic outlook and appears increasingly divided, Schutte said. Some members, like Governor Christopher Waller, have floated the idea of voting for a rate cut even sooner.. While dissenting voices alone aren't decisive, they reflect broader indecision at the central bank. One key wild card is the new tariff deal announced by President Trump, which slapped a 25% tariff on imports from India. Schutte says the market has mostly shrugged off the latest tariff threats, assuming the White House might reverse course if necessary. But he warns that could be a risky bet, especially if businesses start passing tariff costs onto consumers. Underlying economic data already points to weakness. Companies like Procter & Gamble (PG), Starbucks (SBUX) have flagged softening demand. Kraft Heinz (KHC) has emerged a winner, posting robust quarterly earnings fueled by inflation-weary consumers opting to cook more at home. Even so, real private domestic purchases have slowed sharply, even before the full impact of tariffs. 'You are seeing a consumer that is beginning to weaken,' Schutte said. If companies hike prices, the Fed may soon face a tough choice between rising inflation and slowing growth. Meanwhile, Morgan Stanley maintained its baseline view that the Fed will not cut interest rates in 2025. However, in a new report, the firm outlined growing downside risks that could push policymakers to act sooner, even as early as September. The report highlights five scenarios that could justify such a move, including a sharp drop in private payrolls, unemployment above 4.5%, continued disinflation in services, weak inflation alongside rising joblessness, or early signs of corporate stress like weak earnings and layoffs. 'It's a long way to September,' Morgan Stanley analyst Michael Gapen wrote. With several months of data to come, including the Jackson Hole symposium in August, policymakers have time to wait. While cuts remain unlikely in Morgan Stanley's base case, the firm acknowledges a more divided Fed. Following June's meeting, a majority of FOMC participants favored at least one cut by year-end, making a September move plausible if the data breaks the right way. Francisco Velasquez is a Reporter at Yahoo Finance. He can be reached on LinkedIn and X, or via email at Click here for in-depth analysis of the latest stock market news and events moving stock prices Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fast Company
10 minutes ago
- Fast Company
China promises to help companies hit by tariffs after inconclusive trade talks
Trucks loaded with container move through a container terminal port in Shanghai, China, Wednesday, July 30, 2025. [Photo: Chinatopix via AP] BY Listen to this Article More info 0:00 / 4:09 China 's top leaders have pledged to help companies slammed by higher U.S. tariffs but held back on major moves after trade talks with the U.S. this week kept businesses and planners in limbo. At their summer economic planning meeting, the powerful Politburo of the ruling Communist Party pledged to stabilize foreign trade and investment. 'We must assist foreign trade enterprises that have been severely impacted, strengthen financing support, and promote the integrated development of domestic and foreign trade,' the official Xinhua News Agency said in reporting the closed door meeting. It mentioned export tax rebates and free trade pilot zones but gave no other specifics. The inconclusive outcome of two days of trade talks in Stockholm, Sweden, leaves open the question of higher tariffs on Chinese exports to the United States. Chinese Vice Premier He Lifeng said the two sides had agreed to work on extending a deadline for higher tariffs. The U.S. side said the extension was discussed, but not decided. U.S. Treasury Secretary Scott Bessent told reporters after the talks that President Donald Trump would decide whether to extend the Aug. 12 deadline for reaching an agreement or to let tariffs that have been paused for 90 days to 'boomerang' back to a higher level. 'We haven't given the sign-off,' Bessent said, though he emphasized that the talks had been 'very constructive.' China remains one of the biggest challenges for the Trump administration after it has struck deals over elevated tariff rates with other key trading partners — including Britain, Japan and the European Union. Many analysts had expected that the Stockholm talks would result in an extension of current tariff levels, which currently stand at a U.S. tariff of 30% on Chinese goods and a Chinese tariff of 10% on U.S. products, far lower than the triple-digit percentage rates raised in April. The truce in the tariffs war to allow time for talks, agreed on in early May to allow time for negotiations, allowed exporters and other traders to ramp up shipments in hopes of beating any higher tariffs that might follow. The meeting headed by Chinese leader Xi Jinping mostly reiterated Beijing's priorities for the year, including a need to 'unleash domestic demand' which has lagged, leading to a surge of exports by industries unable to find growth at home. It also stressed the need to promote jobs and prevent a 'large scale relapse into poverty.' The economy 'has demonstrated strong vitality and resilience,' the Xinhua report said. But it acknowledged many risks and challenges. That includes reining in brutal competition that has led to damaging price wars among automakers and some other manufacturers and managing excess capacity in some industries, it said. China's economy expanded at a 5.2% annual pace in April-June, slowing slightly from the previous quarter. But analysts have said actual growth may have been significantly slower. Even with the hiatus in higher tariffs, companies are feeling a pinch. Industrial profits in China fell 1.8% in the first half of the year and 4.3% in June, according to data released earlier this week. It's unclear what level of tariffs might eventually be imposed on Chinese exports to the United States. Chinese Foreign Ministry spokesman Guo Jiakun said Thursday that Beijing hopes the U.S. side would follow through on the 'important consensus' reached between Trump and Xi in a phone call to promote stable relations between the world's two largest economies. But Guo reiterated China's stance on its U.S. objections to its purchases of oil and gas from Russia, which Bessent raised during the talks in Stockholm, threatening more tariffs. 'China will take reasonable measures to ensure energy security in accordance with its national interests,' Guo said. 'There are no winners in a tariff war. Coercion and pressure will not solve the problem. China will resolutely safeguard its sovereignty, security and development interests.' —Elaine Kurtenbach, AP business writer The early-rate deadline for Fast Company's Most Innovative Companies Awards is Friday, September 5, at 11:59 p.m. PT. Apply today.
Yahoo
19 minutes ago
- Yahoo
Uncertainty With US Causes Bank of Canada to Keep Rates Unchanged
The Bank of Canada left interest rates unchanged, citing uncertainty posed by US tariffs, but kept the door open to more cuts if the economy weakens and inflation pressures stay in check. The benchmark rate will stay at 2.75%. Bank of Canada Governor Tiff Macklem speaks in Ottawa.
