"Long Magnificent 7" once again world's most crowded trade, BofA survey finds
45% of the 169 participants in August's survey, who have $413 billion in assets under management, said they thought the most crowded trade was "long Magnificent 7", a group of large U.S. tech stocks, including Nvidia (NVDA.O), opens new tab and Microsoft (MSFT.O), opens new tab.
Strong earnings have helped big tech stocks to bounce back sharply since their tariff induced selloff in April. They were last seen as the most crowded trade in March, the survey, which was released on Monday, showed.
Broad investor sentiment improved in August, with just 5% of asset managers positioning for a hard landing, characterised by a sharp slowdown in economic growth.
A net 14% of those surveyed were overweight global equities, the highest since February, though still down sharply from net 49% overweight in December.
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The Independent
28 minutes ago
- The Independent
Trump wants people to buy American. Interest in doing so is plummeting, new poll finds
U.S. consumers are now significantly less interested in buying American-made goods than they were three years ago, according to a new survey. In a report released last week, the Conference Board — a business research nonprofit — said the share of consumers expressing a preference for products "made in the USA" went down from 60 percent in May 2022 to 50 percent this June. The survey asked 3,000 people whether being told that a product they had previously bought and enjoyed was manufactured in various countries would make them more likely to buy it again. Although the U.S. still scored highest on that question, both it and every other country had lost ground, suggesting today's consumers are less compelled by country of origin in general. It comes as President Donald Trump attempts to pressure consumers into buying American via new tariffs on foreign goods, while pressing other countries to import more from the U.S. According to the report's author Denise Dahlhoff, the Trump administration's efforts seem to be having the opposite effect. "Country-of-origin cues still matter — but their influence is slipping," she said. 'As price concerns intensify, many U.S. consumers appear to associate 'made in' labels with elevated prices due to generally higher domestic production costs as well as tariffs on foreign-made goods. "Increasingly, consumers prioritize value and affordability over emotional affinity for certain countries, including their own." In other words, consumers are feeling more hard up and worried about price, perhaps leading them to associate "made in" labels with more expensive products. The U.S.'s score dropped by 18 percent, but that was far from the largest since 2022. Ukraine suffered the biggest decline at 51 percent, with India (49 percent) and Russia (40 percent) close behind. There was also a marked difference in support for U.S.-made items between Republicans and Democrats — 66 percent versus 42 percent — and between poorer and middle income people (42 percent versus 66 percent).
Reuters
29 minutes ago
- Reuters
Trump's trade war with China in 2025
BEIJING, Aug 12 (Reuters) - U.S. President Donald Trump has targeted top economic rival China with a cascade of tariff orders on billions of dollars of imported goods aimed at narrowing a wide trade deficit, bringing back lost manufacturing and crippling the fentanyl trade. The timeline below shows the development of the U.S.-China trade war this year: January 21 - A day after taking office, Trump threatens 10% punitive duty on Chinese imports, citing fentanyl flowing from China. February 1 - Trump imposes 10% on goods from China along with 25% on Mexico and Canada, demanding they curb the flow of fentanyl and illegal immigrants into the U.S. February 4 - China responds with a wide range of measures targeting U.S. businesses including Google, farm equipment makers and the owner of fashion brand Calvin Klein. Beijing also slaps levies of 15% on imports of U.S. coal and LNG and 10% for crude oil and some autos, beginning February 10. It also restricted exports of five metals used in defence, clean energy and other industries. March 3 - The U.S. doubles fentanyl-related tariffs on all Chinese imports, increasing levies to 20%, effective March 4. March 4 - China hits back with 10-15% retaliatory levies on U.S. agriculture exports, affecting about $21 billion in U.S. exports. Beijing also imposed export and investment curbs on 25 U.S. firms, on grounds of national security and banned imports of genetic sequencers from U.S. medical equipment maker Illumina. April 2 - Trump escalates global trade friction with sweeping "liberation day" tariffs, announcing a baseline 10% across all imports and significantly higher duties on some countries. Trump levies 34% on all Chinese goods, to take effect on April 9. The Trump administration also decides to end duty-free access for low-value shipments from China and Hong Kong, known as "de minimis" exemptions, from May 2. April 4 - China announces retaliatory tariffs of 34% on all U.S. imports from April 10 and export curbs on some rare earths. It imposed restrictions on about 30 U.S. organisations, mostly in defence-related industries. Beijing also suspends sorghum, poultry and bone meal shipments from some U.S. firms. April 8 - The U.S. raises tariff on all Chinese imports to 84% from 34%. April 9 - China raises its levies on U.S. imports to 84% too, and added 12 U.S. companies to a control list that prohibits exports of dual-use items and another six to its "unreliable entities" list, which allows Beijing to take punitive actions against foreign entities. The U.S. further hikes tariffs on Chinese imports to 125% from 84%. China later on the day issued risk warnings to its citizens against travelling to the U.S. April 10 - China announces it would immediately restrict imports of Hollywood films. April 11 - China also raises levies on imports of U.S. goods to 125%, dismissing the Trump tariff strategy as "a joke" and indicated it will ignore any further U.S. "numbers game with tariffs". April 15 - U.S. chipmaker Nvidia discloses that U.S. officials had informed it that its H20 chip would require an export license for sales to China. May 10-12 - Beijing and Washington hold high-stakes trade talks over the weekend in Geneva. Both sides released a joint statement agreeing to a 90-day pause on their steep tariffs. The temporary truce meant U.S. tariffs on China will fall to 30% from 145%, while China tariffs on the U.S. drop to 10% from 125%. China also committed to removing non-tariff countermeasures imposed against the United States since April 2. May 28-29 - U.S. says will start "aggressively" revoking visas of Chinese students. It also orders a broad swathe of companies to stop shipping goods covering semiconductors, design software and aviation equipment to China. May 31 - Trump says China violated the agreement reached in Geneva to mutually roll back tariffs and ease Chinese curbs on critical minerals exports. China rejects the accusation, saying U.S. had introduced multiple "discriminatory restrictive" measures against China. June 5 - Chinese President Xi Jinping and Trump hold an hour-long phone call. June 9-10 - U.S. and China hold a new round of trade talks in London and reach a framework agreement. June 11-12 - Some Chinese rare earths magnet producers begin to receive export licences. Trump says trade truce is back on track. June 27 - Treasury Secretary Scott Bessent says U.S. and China have resolved issues around rare earth minerals and magnets shipments to U.S. July 6 - Trump threatens an additional 10% tariff on countries he said were aligning themselves with the "Anti-American policies" of BRICS, which includes China. 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Times
29 minutes ago
- Times
‘Try before you buy': the new property trend loved by the super-rich
'Madame,' Marcel Proust wrote to his noisy upstairs neighbour in the summer of 1915, 'I had ordered these flowers for you and I am in despair that they are coming on a day when… I feel so ill that I would like to ask you for silence… causing them to lose all their fragrance… and bristle with nasty thorns.' For many of us the ills of close-quartered London living are just as prosaic as they were for the French writer over a century ago, delicately navigating the upstairs harpist's playing and her dentist husband's drill, as he flattered them into a peace that would let him finish In Search of Lost Time, his masterpiece. However, a new trend might hold the answer, for the uber-wealthy at least. Prime and super-prime real estate agents — broadly defined as those selling properties over £5 million and £10 million respectively — are seeing a rise in high and ultra-high-net-worth individuals negotiating the right to 'try before you buy' — renting a luxury home before taking the purchasing plunge. Francesca Fox, the director of lettings at Sotheby's International Realty, says the trend started last year but has accelerated 'like wildfire' in 2025, driven mainly by international clients looking to relocate to London but increasingly concerned by high property purchase costs in the UK, potential changes to the non-dom rules, international wars and the whims of their own governments' attitudes to taxation and business. With such slings and arrows, it makes sense to keep their roots shallow, for now. It's not just Sotheby's that has spotted this trend — Knight Frank agrees it's on the rise. Tom Smith, the head of super-prime lettings, says that in the last fifteen months four properties have sold to their former tenants, with two more looking to buy having tried the approach. That might not sound like much, but this is a very small, niche market. Tom says that about 10 to 15 per cent of his clients are having these conversations now, whereas, 15 months ago, it 'just wasn't happening'. The deals can be structured in a few ways — a simple gentleman's agreement, a right of first refusal where a keen renter can buy if the owner decides to sell, or a purchase right built into a tenancy agreement, often with an agreed price or terms, but sometimes with the final price set once the tenant 'triggers' their option. As can be imagined when you're spending many millions, things are pretty bespoke — despite the growth in popularity, there's lots of flexibility in how these agreements are structured. Fox estimates that 80 to 90 per cent of the homes on her books were originally listed as sale only, but now she is offering them to rent. Tenants tend to test-drive their homes for no more than 24 months before deciding to buy, usually after 6 to 12 months. The majority of homes are rented furnished — if people are uncertain about long-term plans they don't want to invest in blinds, bookends and artworks. Although Fox says several super-prime homes have recently sold with the furniture included too, and those sellers have themselves gone on to rent fully furnished homes while they decide whether to buy a new place or relocate. Flexibility is the name of the game in today's market. • Read more expert advice on property, interiors and home improvement Psychologically this desire to try before we buy makes sense. We put far more effort into assessing risk — and therein avoiding loss — than we do into trying to gain something, says the consumer psychologist Dr Helen Watts. The type of person we are matters too. 'Some people are very high on what's called an external locus of control. And this means that if something goes wrong they find it much easier to say, well, it wasn't really my fault, it's to do with the environment,' she explains. 'But others have a high internal locus of control, where they feel that everything that goes wrong or right is to do with themselves.' It's these people, Watts thinks, who feel the pain of a loss more personally and are thus more likely to give a product — or a £20 million townhouse — a renting whirl first. And what of the properties themselves? Buyers are usually looking for six to eight bedrooms, Fox says. A lot of properties have pools, cinemas and private gardens. The wellness craze is driving an interest in spa facilities too — cold water pool plunges, saunas and, increasingly, hammam spas. The latest must-have is a private driveway because of the high rates of car theft, though some are mitigating that risk by simply hiring chauffeurs. One property on offer from Sotheby's is an eight-bed, nine-bath, 8,825 sq ft home on Sheldon Avenue in Highgate, north London. If a triple-height reception hall with a sweeping staircase and two galleried landings is your thing, it's available to rent on a short let basis for £25,000 a week. There's also a two-storey orangery and a pool. Another property currently looking for a tenant — and hopefully one who will ultimately buy — is 1 Hanover Terrace. With 6,730 sq ft of living space it's a touch larger than the average London home's 850 sq ft. Plus, there are six bedrooms and nine bathrooms, a cinema, gym, sauna, double garage and a separate mews house for staff — or all the friends who'll try to come and stay with you when you're living in Regent's Park. Its owner — the Addison Lee founder, Sir John Griffin — moved in in 2013. 'Living there is very peaceful. The view of the lake is mesmerising.' And has he had any problems with noisy neighbours? 'None whatsoever. If anyone misbehaves, I am sure that Damian Hirst [a neighbour] could place them in a tank.' Approaching his eighties and in search of a quieter life in the countryside, Griffin listed the mansion for sale at £29 million in 2022. It failed to sell and can now be rented for £75,000 a month. To top it off it was designed by John Nash in 1811, who also has Buckingham Palace on his CV. There are some potential downsides to all this flexibility. 'From a psychological point of view it can be very draining,' says Watts, highlighting how easily we now return everything from a cashmere jumper to a floor lamp — many of Ikea's items now have a full 365-day returns policy. 'We are in this perpetual state of questioning 'do I still want to own this?' and that can be quite wearing for consumers.' And what might have become of Proust if he had rented first, ditched his apartment at the first pluck of a harp string and spent more time writing. In Search of Lost Time, Volume Two perhaps?
