Bloomberg Daybreak Asia: Tariff War Enters Second Week
A flight from global equities accelerated Monday and investors piled into haven assets as the fallout from US President Donald Trump's tariffs deepened after China slapped retaliatory measures. From Sydney to Tokyo, Asian stocks plunged at the open along with commodities such as oil and copper. Trading of Nikkei 225 and Topix futures was suspended earlier as a circuit breaker was triggered due to a glut of sell orders, according to a notice on Japan Exchange Group's website. Yields on two-year Treasuries, the most policy sensitive bonds, dropped as much as 22 basis points while the Japanese yen and Swiss franc surged. Chinese stocks are bracing for a grim day when trading resumes after an extended weekend, during which Beijing announced 34% tariffs on all imports from the US. A gauge of US-listed Chinese shares fell 8.9% on Friday. For perspective on the week ahead for markets, we speak with Helen Zhu, Chief Investment Officer and Managing Director at NF Trinity. The tariff moves underscore the heightened concerns across financial markets as Trump attempts to reshape the global trade in Washington's favor, increasing the risk of a recession. Federal Reserve Chair Jerome Powell made clear that the central bank won't rush to react to the tariffs, which are likely to have a significant effect on the US economy, including slower growth and higher inflation. We explore what the global selloff could mean for monetary policy with Adam Coons, Co-Chief Investment Officer at Winthrop Capital Management.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
an hour ago
- Bloomberg
Trump Says China ‘Not Easy' as Trade Talks Resume
Good morning. Trade talks between the US and China continue into a second day in London. The Trump administration mobilizes Marines in response to the LA protests. And the Ritz London claims the top spot in the UK National Restaurant Awards. Listen to the day's top stories. Trade talks between the US and China will continue into a second day as the two sides look to ease tensions over shipments of technology and rare earth elements. 'We are doing well with China,' Donald Trump told reporters at the White House, adding ' China's not easy.'
CNBC
an hour ago
- CNBC
CNBC Daily Open: 'Good reports' from U.S.-China talks could push S&P 500 to new high, analysts say
Trade negotiators from the U.S. and China have met in London, and talks are expected to continue Tuesday, a source familiar with the situation told CNBC's Megan Casella. It seems that coaxing China to relax its rare earths export curbs is at the top of America's agenda, according to a CNBC interview with U.S. National Economic Council Director Kevin Hassett. If China's actions late last week — when it seemingly gave Western automakers concessions regarding those minerals — are any indication, Beijing could be willing to accede to the request. The world's second-biggest economy would demand reciprocity. On June 2, Beijing bristled at Washington's tighter grip on exports of chip design software to China. It's a good thing, then, that Washington also appears to be in a conciliatory mood. "Our expectation is that … immediately after the handshake, any export controls from the U.S. will be eased," Hassett said on CNBC's "Squawk Box." Indeed, Trump has reportedly authorized Treasury Secretary Scott Bessent's team to lift those curbs, according to The Wall Street Journal, and has described receiving "good reports" from the U.S. contingent. If the U.S.-China talks go well, there's a chance the S&P 500, only around 2% off its February high as of Tuesday morning Singapore time, could reach a new peak, noted the JPMorgan trading desk. That'd be something to cheer, of course. But it's slightly disappointing that the S&P could have continued scaling heights from February, or at least broken its closing high much earlier in the year, if not for truculent trade policy from the White House — which, as is evident from the meeting between U.S. and China, governments are still trying to undo. U.S.-China talks set to go into Day 2U.S. President Donald Trump's top trade officials met Chinese counterparts in London on Monday for talks aimed at resolving their trade dispute — particularly with regard to mineral exports. Discussions are set to continue Tuesday. Late last week, in an apparent olive branch, China seemed to offer U.S. and European auto giants something of a reprieve regarding its exports of rare earth elements. Markets inch up globallyU.S. stocks edged up Monday. The S&P 500 added 0.09%, the Dow Jones Industrial Average was mostly flat, and the Nasdaq Composite rose 0.31%. Asia-Pacific markets rose Tuesday. South Korea's Kospi index was up 0.38% at 1:30 p.m. Singapore time. Analysts from Macquarie Group say they think the country's stock market will rally and enter a bull market on the back of "expansionary fiscal policy" from the new government. A new 'Liquid Glass' look for Apple's iOSApple held its annual Worldwide Developers Conference keynote on Monday. At the event, the company announced a redesign to its iOS system called "Liquid Glass," a virtual glass look that was inspired by the Vision Pro and the most significant redesign of its operating system since 2013. Investors were underwhelmed by the announcements — which lacked developments on the AI front — and sent shares down 1.2%. UK in a 'Goldilocks' moment: Nvidia CEO "The U.K. is in a Goldilocks circumstance," Nvidia CEO Jensen Huang said Monday on a panel with British Prime Minister Keir Starmer and Investment Minister Poppy Gustafsson. "You can't do machine learning without a machine — and so the ability to build these AI supercomputers here in the U.K. will naturally attract more startups," Huang said, though he added that the country lacks homegrown AI infrastructure. [PRO] New record for S&P soon?The S&P 500 ticked higher on Monday and continues to chip away at the gap to a new record high. The broad-based index is just 2% below its record close set in February. Several events in the days ahead could prove to be the catalyst that vaults it over the top, according to the JPMorgan trading desk. China's homegrown coffee giants are brewing up a U.S. expansion Chinese beverage chains are redefining coffee culture in the country — and now they're trying to win over customers in the U.S. and beyond. Luckin Coffee, China's largest coffee chain, has expanded aggressively in China and overtaken Starbucks on the mainland, with more than twice as many outlets. After venturing into Singapore, Hong Kong and Malaysia, Luckin is set to take its biggest leap yet with plans to open a branch in lower Manhattan. "New York is probably culturally the best testing ground for an international brand to expand into, especially a Chinese one," said Bernstein senior analyst Danilo Gargiulo, citing the city's diversity and large base of young consumers. "But it's also the most saturated, one of the most competitive markets."
San Francisco Chronicle
an hour ago
- San Francisco Chronicle
Japanese frigate arrives in Australia as Tokyo bids for defense deal
NEWCASTLE, Australia (AP) — A state-of-the-art Japanese warship has arrived in Australia as part of a high-stakes campaign to secure a $6.5 billion contract to build the country's next fleet of general-purpose frigates. The JS Yahagi, a Mogami-class stealth frigate from Japan's Maritime Self-Defense Force, is docked in Darwin in Australia's Northern Territory in what appears a symbolic and strategic move aimed at strengthening defense ties with Australia and showcasing Japanese naval technology. Japan's bid, led by Mitsubishi Heavy Industries, was short-listed in November for the Royal Australian Navy's SEA 3000 frigate project and is competing against Germany's MEKO A-200 offered by Thyssenkrupp Marine Systems. Japan would jointly develop and produce the frigates for the Australian navy. Bolstering defense industry As part of its military buildup, Japan is pushing to strengthen its largely domestic defense industry by participating in joint development, including a next-generation fighter jet with Britain and Italy, and promoting foreign sales like the Mogami-class ships. In a sign of its commitment and heavy investment Japan has pledged to prioritize the RAN's order over its own naval procurement. The project not only serves to further deepen cooperation between Japan and Australia but also to enhance Japan's warship capabilities, Defense Minister General Nakatani has said. The Japanese Mogami-class design boasts advanced combat systems, anti-submarine and anti-air warfare capabilities, and mine countermeasure operations — all operated by a lean crew of around 90, helping to address ongoing recruitment challenges in the Australian Navy. The vessel's commanding officer, Tamura Masayoshi, said the ship's smaller crew was an aim of the Mogami-class ship. 'The Japanese Maritime Self-Defense Force thought we need stealth, and less people, and a little bit smaller ship,' Masayoshi told the Australian Broadcasting Corporation. Closer military ties The JS Yahagi's visit to Darwin comes amid intensifying strategic cooperation between Canberra and Tokyo, both of which have emphasized the importance of maritime safety and security of sea lanes. The frigate's arrival is also seen as a gesture of Japan's growing role in regional security and its desire to align more closely with key partners like Australia. In September 2024, Australia and Japan agreed to increase joint military training exercises to address shared concerns of China's incursions into Japanese airspace and territorial waters. Two months later, defense ministers from Australia, Japan and the U.S. held tripartite talks in Darwin to reaffirm their commitment to strengthening security ties and planning for joint military operations in northern Australia. —— Mari Yamaguchi in Tokyo contributed.
