State Street's Matt Bartolini on how ETF investors are reacting to growing Middle East tensions
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CNBC
5 minutes ago
- CNBC
CNBC Daily Open: Boomerang tariffs ahead?
The much-anticipated U.S.-China trade talks in Sweden turned out to be a letdown after they concluded Tuesday with no trade truce extension. Why? Any decision would have to be signed off by President Donald Trump, Treasury Secretary Scott Bessent told CNBC. While Bessent told Trump on a call that the meeting with China was "very good," U.S. tariffs on Chinese goods will "boomerang" back up to their April levels if an extension is not reached by the Aug. 12 deadline, the Treasury Secretary told reporters Tuesday. The trade teams will likely meet again in another 90 days, Bessent added. Investor sentiment took a hit, with mixed corporate earnings and forecasts compounding the gloom and sending markets lower after recent gains. There were some bright spots: Boeing narrowed its quarterly losses and Starbucks' CEO Brian Niccol said the company was showing signs of a turnaround, despite reporting its sixth straight quarter of same-store sales declines. But warnings also emerged. UPS, often seen as a proxy for broader U.S. consumer activity, withheld forward guidance on revenue and operating profit, citing ongoing macroeconomic uncertainty. All eyes now turn to the Federal Reserve, which concludes its policy meeting Wednesday. Other key economic data are also on deck this week, including a reading of gross domestic product and private payroll data due out Wednesday.U.S.-China tariff truce extension in limbo. Treasury Secretary Scott Bessent said Tuesday that Trump would have to sign off on any deal after the two countries concluded trade talks in Sweden with no extension. But he told CNBC that the meeting was "far-reaching, far-reaching, robust and highly satisfactory." Markets fall on stalled trade talks. On Tuesday, the S&P 500 and Nasdaq Composite closed lower, retreating from their fresh record highs at the opening bell. Europe Stoxx 600 was up 0.29%. Corporations sound the alarm after mixed earnings. Boeing and Procter & Gamble reported earnings beats, but others missed expectations like Spotify, which posted weak guidance, while shipping giant and U.S. consumer bellwether UPS slashed its dividend. Starbucks reports sixth straight quarter of same-store sales declines. But CEO Brian Niccol said in a prerecorded video published with the earnings report that the numbers "don't yet reflect all the progress we've made," and their comeback is "gaining momentum." Shares of the company climbed over 4% after hours. [PRO] Apple is likely to launch foldable iPhone in September 2026, predicts JPMorgan. Analyst Samik Chatterjee shared an estimated price for the new design, the revenue opportunities it could bring for Apple, and named other companies that might benefit from the latest iPhone 17 series. Samsung backs South Korean AI chip startup Rebellions ahead of IPO South Korean artificial intelligence chip startup Rebellions has raised money from tech giant Samsung and is targeting a funding round of up to $200 million ahead of a public listing, Sungkyue Shin, chief financial officer of the startup, told CNBC on Tuesday. He declined to say how much the tech giant poured in. The current funding round is ongoing and Shin said Rebellions is talking to its current investors as well as investors in Korea and globally to participate in the capital raise. Rebellions has some big investors, including South Korean chip giant SK Hynix, telecommunication firms SK Telecom and Korea Telecom, and Saudi Arabian oil giant Aramco.
Yahoo
22 minutes ago
- Yahoo
Coffee and cocoa could be exempt from tariffs in trade deals, commerce secretary says
By Marcelo Teixeira NEW YORK (Reuters) -Natural resources that are not grown in the United States, including coffee and cocoa, could be exempt from import tariffs when trade deals with producing countries are reached, U.S. Commerce Secretary Howard Lutnick said on Tuesday. Lutnick said in an interview for CNBC's talk program 'Squawk Box' that President Donald Trump has agreed to set zero tariffs for those natural resources that are not grown in the U.S. in the trade deals he has closed, including the ones with Indonesia and the European Union. "If you grow something and we don't grow it, that can come in for zero, so if we do a deal with a country that grows mangos, pineapple, then they can come in without a tariff, because coffee and cocoa will be other examples of natural resources," Lutnick said. "So Europe came in with cork, for example. That can come in to the U.S. without a tariff," he said. A part of the text of the 'Agreement on Reciprocal Trade between the United States and Indonesia' that was published last week by the White House cites natural resources. It says that the U.S. "may also identify certain commodities that are not naturally available or domestically produced in the United States for a further reduction in the reciprocal tariff rate". Indonesia agreed with a tariff of 19% to sell its products in the U.S., but could eventually have zero tariff for its coffee, cocoa, or other tropical products. Lutnick however did not comment on the situation of tropical products coming from countries that still do not have a deal with the U.S., such as Brazil. Trump threatened to impose a 50% tariff on Brazilian products from August 1 in a move that also involves politics, as the U.S. President complained about the treatment Brazilian courts are giving to former Brazilian president and his ally Jair Bolsonaro. Brazil supplies a third of the coffee used in the U.S., the world's largest drinker of the beverage, and that trade could be heavily impacted if tariffs are indeed imposed. 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
CNBC
3 hours ago
- CNBC
Asia markets set to fall as U.S. trade talks with China hang in the balance
Asia-Pacific markets are expected to fall as U.S. Commerce Secretary Howard Lutnick affirmed that President Donald Trump's upcoming Friday deadline to impose major tariffs on a slew of trading partners will not be delayed further. However, Lutnick noted that trade negotiations with China are progressing on a separate timeline, he said on CNBC's "Squawk Box." Happy mid-week from Singapore. Asia markets are poised for a lower open. Futures for Hong Kong's Hang Seng Index stood at 25,344, pointing to a weaker open compared with the HSI's last close of 25,524.45 Similarly, Australia's S&P/ASX 200 was set to start the day lower with futures tied to the benchmark at 8,662, compared with its last close of 8,704.6. Japan's benchmark Nikkei 225 was set to open lower, with the futures contract in Osaka last traded at 40,650 against the index's last close of 40,674.55. — Lee Ying Shan Stocks closed lower on Tuesday, as investors turn their attention to the Federal Reserve's interest rate decision. The S&P 500 slipped 0.30% to close at 6,370.86, while the Nasdaq Composite lost 0.38% to 21,098.29. The Dow Jones Industrial Average slipped 204.57 points, or 0.46%, to finish the session at 44,632.99. — Brian Evans Investors should remain vigilant and not look past the potential risks of tariffs, according to UBS. "The impact of tariffs can't be overlooked even though recent deals have provided greater clarity. While the 15% tariff rate on most EU and Japanese goods was lower than earlier threats from the U.S., the higher levies will still create headwinds for growth," said Ulrike Hoffmann-Burchardi, chief investment officer for the Americas and global head of equities at UBS Global Wealth Management. "While our base case is that the resilience of the US consumer should help the U.S. economy avoid recession, a larger-than-expected impact on inflation or more severe hit to corporate margins could quickly change the current optimistic market narrative," she added. — Brian Evans
