US: Wall Street opens higher on rate cut hopes; earnings in spotlight
The Dow Jones Industrial Average rose 26.4 points, or 0.06 per cent, at the open to 44200.07. The S&P 500 rose 6.7 points, or 0.11 per cent, to 6336.63, while the Nasdaq Composite rose 38.5 points, or 0.18 per cent, to 21092.097. REUTERS
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Business Times
7 minutes ago
- Business Times
Thai consumer confidence hits lowest level in over two years
[BANGKOK] Thai consumer confidence dropped for a sixth consecutive month in July to its lowest level in 31 months due mainly to concerns over US tariffs, a lagging economy and government instability, a survey showed on Thursday (Aug 7). The consumer index of the University of the Thai Chamber of Commerce fell to 51.7 in July from 52.7 in the previous month. The sluggish economy and the trade war, as well as high living costs, continue to undermine confidence, the university said. 'The confidence index shows no signs of recovery, with consumer purchasing power still subdued,' university president Thanavath Phonvichai told a press conference. 'The economy shows signs of stagnation and needs more stimulation,' he said, adding that the economy might grow by only 1.7 per cent this year, after last year's 2.5 per cent expansion. While the United States has reduced its tariff on imported goods from Thailand to 19 per cent from 36 per cent, there are still uncertainties relating to US tariffs on transshipments via Thailand from third countries, Thanavath said. 'What needs to be clearly defined is tariffs on transshipments. They must be explicitly outlined for businesses to adapt accordingly,' he said. Consumers were also worried about the instability of the government following the suspension of Prime Minister Paetongtarn Shinawatra from duty pending a case seeking her dismissal, Thanavath said. 'The political situation remains unstable following the prime minister's suspension from duty, creating an unclear outlook and undermining confidence,' he said. REUTERS
Business Times
2 hours ago
- Business Times
Asia: Markets rise as Trump chip exemptions boost tech giants
[HONG KONG] Asian equities rose on Thursday, with big-name chip firms making big gains after Donald Trump said those investing in the United States would be exempted from a threatened 100-per cent tariff on semiconductors. The advances built on a strong lead from Wall Street and extended the previous day's rally fuelled by hopes the Federal Reserve will cut interest rates next month. A day before sweeping tariffs were due to come into effect on dozens of countries, the president said: 'we're going to be putting a very large tariff on chips and semiconductors'. He added that the level would be '100 per cent' but did not offer a timetable. However, he said 'the good news for companies like Apple is, if you're building in the United States, or have committed to build... in the United States, there will be no charge'. Stock gains were led by Taiwan's giant TSMC, which surged almost five per cent in early trade, with the island's National Development Council chief Liu Chin-ching saying the firm was in the clear. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'Because Taiwan's main exporter is TSMC, which has factories in the United States, TSMC is exempt,' he told a briefing in parliament. TSMC, which is ramping up manufacturing in Arizona, has pledged to invest as much as US$165 billion in the United States, which the firm said in March was the 'largest single foreign direct investment in US history'. Seoul-listed Samsung, which is also pumping billions into the world's number one economy, rose more than two per cent while South Korean rival SK Hynix was also up. Apple-linked firms were also helped after the US giant said it will invest an additional US$100 billion in the United States, taking its total pledge to US$600 billion over the next four years. Foxconn and Pegatron both rose in Taipei. However, Tokyo Electron and Renesas both retreated in Japanese trade. Tariff talks 'To some degree this outcome would be something of a relief,' said Morgan Stanley analysts. 'Yes, 100 per cent tariffs are unpalatable but if companies are given time to restore them, the real tax is just the higher cost of building chips in the United States.' Trump's remarks came hours before his wide-ranging 'reciprocal' tariffs are set to kick in against trading partners, and after he doubled his levy on India to 50 per cent over its purchase of Russian oil. Fifty per cent tolls on Brazilian goods came into place Wednesday, with significant exemptions, after Trump targeted Latin America's biggest economy over its prosecution of former president Jair Bolsonaro. Investors are keeping tabs on talks between the White House and New Delhi, as well as other countries including Switzerland, which was this week hammered with a 39 percent toll. Asian markets extended their recent run-up and have regained much of last week's losses sparked by the president's tariff announcements and weak US jobs data. Tokyo, Hong Kong, Shanghai, Singapore, Seoul and Wellington were all in the green, with Taipei leading the way thanks to the surge in TSMC. The gains followed a strong day on Wall Street, where Apple jumped more than five per cent and Amazon piled on four per cent. Traders had already been on a buying streak as they grew optimistic that the Fed will cut rates after data last week showing US jobs creation cratered in May, June and July, signalling the economy was weakening. US futures rose Thursday. Oil prices rose after Trump threatened penalties on other countries that 'directly or indirectly' import Russian oil, after imposing his extra toll on India. Still, traders are keeping tabs on developments regarding Moscow and its war in Ukraine after the US president said he could meet with Vladimir Putin 'very soon' following what he called highly productive talks between his special envoy and the Russian leader. AFP
AsiaOne
2 hours ago
- AsiaOne
Missed signals, lost deal: How India-US trade talks collapsed, World News
NEW DELHI/WASHINGTON — After five rounds of trade negotiations, Indian officials were so confident of securing a favourable deal with the United States that they even signalled to the media that tariffs could be capped at 15 per cent. Indian officials expected US President Donald Trump to announce the deal himself weeks before the Aug 1 deadline. The announcement never came. New Delhi is now left with the surprise imposition of a 25 per cent tariff on Indian goods from Friday, along with unspecified penalties over oil imports from Russia, while Trump has closed larger deals with Japan and the EU, and even offered better terms to arch-rival Pakistan. Interviews with four Indian government officials and two US government officials revealed previously undisclosed details of the proposed deal and an exclusive account of how negotiations collapsed despite technical agreements on most issues. The officials on both sides said a mix of political misjudgement, missed signals and bitterness broke down the deal between the world's biggest and fifth-largest economies, whose bilateral trade is worth over US$190 billion (S$244 billion). The White House, the US Trade Representative office, and India's Prime Minister's Office, along with the External Affairs and Commerce ministries, did not respond to emailed requests for comment. India believed that after visits by Indian Trade Minister Piyush Goyal to Washington and US Vice President J.D. Vance to Delhi, it had made a series of deal-clinching concessions. New Delhi was offering zero tariffs on industrial goods that formed about 40 per cent of US exports to India, two Indian government officials told Reuters. Despite domestic pressure, India would also gradually lower tariffs on US cars and alcohol with quotas and accede to Washington's main demand of higher energy and defence imports from the US, the officials said. "Most differences were resolved after the fifth round in Washington, raising hopes of a breakthrough," one of the officials said, adding negotiators believed the US would accommodate India's reluctance on duty-free farm imports and dairy products from the US It was a miscalculation. Trump saw the issue differently and wanted more concessions. "A lot of progress was made on many fronts in India talks, but there was never a deal that we felt good about," said one White House official. "We never got to what amounted to a full deal — a deal that we were looking for." Over-confidence and miscalculation Indian Prime Minister Narendra Modi, who visited Washington in February, agreed to target a deal by fall 2025, and more than double bilateral trade to US$500 billion by 2030. To bridge the US$47 billion goods trade gap, India pledged to buy up to US$25 billion in US energy and boost defence imports. But officials now admit India grew overconfident after Trump talked up a "big" imminent deal, taking it as a signal that a favourable agreement was in hand. New Delhi then hardened its stance, especially on agriculture and dairy, two highly sensitive areas for the Indian government. "We are one of the fastest growing economies, and the US can't ignore a market of 1.4 billion," one Indian official involved in the negotiations said in mid-July. Negotiators even pushed for relief from the 10 per cent average US tariff announced in April, plus a rollback of steel, aluminium and auto duties. Later, India scaled back expectations after the US signed trade deals with key partners including Japan, and the European Union, hoping it could secure a similar 15 per cent tariff rate with fewer concessions. That was unacceptable to the White House. "Trump wanted a headline-grabbing announcement with broader market access, investments and large purchases," said a Washington-based source familiar with the talks. An Indian official acknowledged New Delhi wasn't ready to match what others offered. South Korea, for example, struck a deal just before Trump's Aug 1 deadline, securing a 15 per cent rate instead of 25 per cent by offering US$350 billion in investments, higher energy imports, and concessions on rice and beef. Communication breakdown "At one point, both sides were very close to signing the deal," said Mark Linscott, a former US Trade Representative who now works for a lobby group that is close to the discussions between the two nations. "The missing component was a direct line of communication between President Trump and Prime Minister Modi." A White House official strongly disputed this, noting other deals had been resolved without such intervention. An Indian government official involved in the talks said Modi could not have called, fearing a one-sided conversation with Trump that could put him on the spot. However, the other three Indian officials said Trump's repeated remarks about mediating the India-Pakistan conflict further strained negotiations and contributed to Modi not making a final call. "Trump's remarks on Pakistan didn't go down well," one of them said. "Ideally, India should have acknowledged the US role while making it clear the final call was ours." A senior Indian government official blamed the collapse on poor judgement, saying top Indian advisers mishandled the process. "We lacked the diplomatic support needed after the US struck better deals with Vietnam, Indonesia, Japan and the EU," the official said. "We're now in a crisis that could have been avoided." Trump said on Tuesday he would increase the tariff on imports from India from the current rate of 25 per cent "very substantially" over the next 24 hours and alleged that New Delhi's purchases of Russian oil were "fuelling the war" in Ukraine. Way forward Talks are ongoing, with a US delegation expected in Delhi later this month and Indian government officials still believe the deal can be salvaged from here. "It's still possible," one White House official said. The Indian government is re-examining areas within the farm and dairy sectors where concessions can be made, the fourth official said. On Russian oil, India could reduce some purchases in favour of US supplies if pricing is matched. "It likely will require direct communication between the prime minister and the president," said Linscott. "Pick up the phone. Right now, we are in a lose-lose. But there is real potential for a win-win trade deal." [[nid:721042]]
