ASX set to rise, Wall Street mixed; Trump labels Fed chief a ‘numbskull'; Coca-Cola to make new product after Trump pressure
The S&P 500 added 0.1 per cent to the all-time high it had set the day before. The Dow Jones Industrial Average rose 179 points, or 0.4 per cent, though the Nasdaq composite slipped 0.4 per cent from its own record.
The Australian sharemarket is set to rise, with futures at 6.59am AEST pointing to a gain of 40 points, or 0.5 per cent, at the open. The ASX edged 0.1 per cent higher on Tuesday. The Australian dollar is higher. It was fetching 65.54 US cents at 7.22am AEST.
General Motors dropped 8.1 per cent despite reporting a stronger profit for the spring than analysts expected. The automaker said it's still expecting a $US4 billion to $US5 billion ($US6.1 billion- $US7.6 billion) hit to its results over 2025 because of tariffs and that it hopes to mitigate 30 per cent of that. GM also said it will feel more pain because of tariffs in the current quarter than it did during the spring.
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That helped to offset big gains for some homebuilders after they reported stronger profits for the spring than Wall Street had forecast. D.R. Horton rallied 17 per cent, and PulteGroup jumped 11.5 per cent. That was even as both companies said homebuyers are continuing to deal with challenging conditions, including higher mortgage rates and an uncertain economy.
So far, the US economy seems to be powering through the uncertainty created by Trump's on-and-off tariffs. Many of Trump's proposed taxes on imports are currently on pause, and the next big deadline is August 1. Talks are underway on possible trade deals with other countries that could lower the stiff proposals before they kick in.
Trump said he reached a trade agreement with the Philippines following a meeting Tuesday at the White House, that will see the US slightly drop its tariff rate for the Philippines without paying import taxes for what it sells there.
Companies are already feeling effects. Genuine Parts, the Atlanta-based company that sells auto and industrial replacement parts around the world, trimmed its profit forecast for the full year in order to incorporate 'all US tariffs currently in effect,' along with its updated expectations for business conditions in the second half of the year.
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West Australian
19 minutes ago
- West Australian
Risk of higher US tariffs looms despite beef deal
Australia's move to lift restrictions on US beef is unlikely to shift the dial on tariff negotiations, as the nation's products face the possibility of even steeper duties. The Albanese government will allow access to US beef that has been raised in Canada or Mexico but processed in America, following a safety review. Australia is subject to a baseline 10 per cent tariff applied by the Trump administration and has been keeping an eye on the trade negotiations of other countries. AMP chief economist Shane Oliver said Donald Trump's flagged higher tariffs might include the nation's exports. "The risk for Australia is that we may be lucky to hang on to 10 per cent, which could actually turn out to be higher," he told AAP. "This (beef decision) might help us hang on to 10 per cent or avoid a worse outcome, but I don't think there's any guarantees of that." American beef was banned from Australia almost two decades ago following an outbreak of mad cow disease. Mr Trump has pressured the government to ease restrictions as Labor argues for an exemption from the tariffs as part of the US president's deepening trade war. Former ambassador to the US Arthur Sinodinos said while biosecurity investigations can take a while to finalise, it was a "sensible outcome". "The challenge here is it doesn't look like we're putting together a package deal," he said. "It'd be better if there was a package approach to this if we're seeking to gather an overall trade outcome with the US." Australian Farm Institute executive director Katie McRobert said the cattle industry has been "extremely nervous" about biosecurity traceability from different parts of the north and South America regions. "We wouldn't expect a significant impact on Australian producers from the potential to import American beef ... because we already produce far more beef in Australia than we can possibly eat," she said. Trade Minister Don Farrell said he didn't have any meetings scheduled with American counterparts after last meeting US trade representative Jamieson Greer on the sidelines of an OECD ministerial meeting in Paris in June. Senator Farrell said Mr Greer didn't raise beef concerns at that meeting. "We believe that America should lift those tariffs on Australia, there's no justification whatsoever for the United States to apply tariffs to Australia," he told reporters in Canberra on Thursday. "We have a free trade agreement, that agreement makes it very clear that it's a tariff free arrangement." Senator Farrell also denied the move was to create a bargaining chip. The Philippines and Japan recently struck agreements with the US to lower their tariff rates, but both are still above the 10 per cent baseline.
Perth Now
19 minutes ago
- Perth Now
Risk of higher US tariffs looms despite beef deal
Australia's move to lift restrictions on US beef is unlikely to shift the dial on tariff negotiations, as the nation's products face the possibility of even steeper duties. The Albanese government will allow access to US beef that has been raised in Canada or Mexico but processed in America, following a safety review. Australia is subject to a baseline 10 per cent tariff applied by the Trump administration and has been keeping an eye on the trade negotiations of other countries. AMP chief economist Shane Oliver said Donald Trump's flagged higher tariffs might include the nation's exports. "The risk for Australia is that we may be lucky to hang on to 10 per cent, which could actually turn out to be higher," he told AAP. "This (beef decision) might help us hang on to 10 per cent or avoid a worse outcome, but I don't think there's any guarantees of that." American beef was banned from Australia almost two decades ago following an outbreak of mad cow disease. Mr Trump has pressured the government to ease restrictions as Labor argues for an exemption from the tariffs as part of the US president's deepening trade war. Former ambassador to the US Arthur Sinodinos said while biosecurity investigations can take a while to finalise, it was a "sensible outcome". "The challenge here is it doesn't look like we're putting together a package deal," he said. "It'd be better if there was a package approach to this if we're seeking to gather an overall trade outcome with the US." Australian Farm Institute executive director Katie McRobert said the cattle industry has been "extremely nervous" about biosecurity traceability from different parts of the north and South America regions. "We wouldn't expect a significant impact on Australian producers from the potential to import American beef ... because we already produce far more beef in Australia than we can possibly eat," she said. Trade Minister Don Farrell said he didn't have any meetings scheduled with American counterparts after last meeting US trade representative Jamieson Greer on the sidelines of an OECD ministerial meeting in Paris in June. Senator Farrell said Mr Greer didn't raise beef concerns at that meeting. "We believe that America should lift those tariffs on Australia, there's no justification whatsoever for the United States to apply tariffs to Australia," he told reporters in Canberra on Thursday. "We have a free trade agreement, that agreement makes it very clear that it's a tariff free arrangement." Senator Farrell also denied the move was to create a bargaining chip. The Philippines and Japan recently struck agreements with the US to lower their tariff rates, but both are still above the 10 per cent baseline.
Perth Now
19 minutes ago
- Perth Now
UK touted as important partner as US uncertainty grows
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