How Trump's tariff turmoil scarred global markets: podcast
LONDON/NEW YORK, April 17 (Reuters Breakingviews) - Stocks and government bonds have steadied following dramatic falls triggered by the US president's trade war. But the policy may yet do lasting damage. In this Viewsroom podcast, Breakingviews columnists examine the possible long-term effects on US Treasuries and the dollar.
Follow @aimeedonnellan, opens new tab and @JMAGuilford, opens new tab on X
FURTHER READING/LISTENING
Tariffs gone wild yield unbridled earnings outlook
What could knock King Dollar off its throne: podcast
Tariff chaos leaves its mark on US debt costs
US tariff mania keeps everyone on edge: podcast
Visit the Thomson Reuters Privacy Statement, opens new tab for information on our privacy and data protection practices. You may also visit megaphone.fm/adchoices, opens new tab to opt-out of targeted advertising.
For more insights like these, click here, opens new tab to try Breakingviews for free.
Breakingviews
Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.
Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
11 minutes ago
- Reuters
European shares steady as tech-led selloff jitters cool
SINGAPORE, Aug 20 (Reuters) - European shares steadied on Wednesday, as a tech-led selloff on Wall Street that has rippled through equity markets eased, while currency and rates traders honed in on a key meeting of central bankers later this week. The pan-European STOXX 600 index (.STOXX), opens new tab was nearly flat after declining by as much as 0.4% earlier in the day, pressured by weakness in tech and defence sector stocks. That early weakness followed a fall in Asian markets, where tech-heavy indexes were the biggest losers after the NASDAQ composite index (.IXIC), opens new tab dropped nearly 1.5% on Tuesday. Futures on the tech-heavy NASDAQ were just 0.2% lower on Wednesday, however, suggesting a calmer open ahead. While there was no major trigger for the selloff in tech stocks, analysts pointed to a confluence of factors, including concerns over high valuations, a general risk-off mood and U.S. President Donald Trump's growing influence over the sector. "I think we were priced for perfection in the U.S. and there was a quite a lot of complacency in markets, so some summer volatility should have been expected," said Ben Laidler, head of equity strategy at BRADESCO BBI. Trump's influence on the U.S. tech-sector has also been in focus for investors. U.S. Commerce Secretary Howard Lutnick is looking into the government taking equity stakes in Intel as well as other chip companies, two sources told Reuters. While the individual developments may be brushed aside by markets, they fall into the broader bucket of concerns over the institutional framework in the United States, Laidler said. The potential move comes on the back of other unusual deals Washington has recently struck with U.S. companies, including allowing AI chip giant Nvidia (NVDA.O), opens new tab to sell its H20 chips to China in exchange for the U.S. government receiving 15% of the revenue from those sales. In commodities, Brent crude futures were last up 1.1% at $66.55 a barrel as investors awaited the next steps in talks to end Russia's war on Ukraine, with uncertainty over whether oil sanctions might be eased or tightened. While a meeting between Trump, Ukrainian President Volodymyr Zelenskiy and a group of European allies concluded without much fanfare, Trump said the United States would help guarantee Ukraine's security in any deal to end Russia's war there. "The U.S. is not categorically underwriting anything, any security for Ukraine, even if they're open to provide some, because we don't know the conditions under which they will. So there's quite a bit of risk left out there," said Vishnu Varathan, head of macro research for Asia ex-Japan at Mizuho. Elsewhere, Sweden's central bank kept its key interest rate on hold as expected on Wednesday, while the Reserve Bank of New Zealand cut policy rates to a three-year low and signalled further easing, sending the kiwi down by over 1%. The focus is now on the Kansas City Federal Reserve's August 21-23 Jackson Hole symposium, where Fed Chair Jerome Powell is due to speak on the economic outlook and the central bank's policy framework on Friday. Powell's remarks on the near-term outlook for rates will be keenly watched as traders are almost fully pricing in a rate cut next month. The minutes of the Fed's July policy meeting are due later on Wednesday, but are unlikely to spur meaningful market reactions as they pre-date weak U.S. labour market data that spurred a firming of rate cut expectations. The dollar was steady against the euro at $1.1646. Sterling was flat at $1.3498 after rising slightly in immediate reaction to data that showed UK inflation its highest in 18 months in July. The fact this was not even worse meant under-fire British government bonds rallied on the news, with the benchmark 10-year gilt yield down 5 basis points at 4.69%. The 10-year Treasury yield was marginally lower at 4.29%. "We expect the dollar to depreciate largely because US economic performance no longer supports the currency's high valuation, and we think the softening labor market is providing late-summer support to that view," analysts at Goldman Sachs said in a note. Elsewhere, spot gold rose 0.3% to $3,326.89 an ounce.
Reuters
11 minutes ago
- Reuters
Morning Bid: Tech angst on AI doubts
LONDON, Aug 20 (Reuters) - What matters in U.S. and global markets today By Mike Dolan, opens new tab, Editor-At-Large, Finance and Markets In markets, the trigger for sudden confidence swoons is often elusive, particularly when looking at periodic rotations out of high-flying U.S. tech stocks. And most signs suggest this week's tech retreat may be more about re-positioning than investors receiving some lightning bolt of tech shakeout led to a 1.5% plunge in the Nasdaq index even as the blue chip Dow Jones Industrials Average hit a record intraday high. But the tech slump dragged the S&P 500 down 0.6%, and U.S. equity futures showed little sign of a bounce early on Wednesday. * Reasons for the sudden tech angst tended to be gathered after the event, with some pointing to comments late last week from OpenAI boss Sam Altman on inevitable bubbles in the sector and others pointing to different research papers fretting variously about both the limited returns on blistering AI spending to date and also its growing jobs destruction. The jitters also come ahead of next week's earnings report from chip behemoth Nvidia, some concern about the wider implications of the U.S. government's proposed stake in ailing chip giant Intel and caution ahead of the Federal Reserve's annual Jackson Hole conference this week. * Even though Fed concerns were cited across markets on Tuesday, there was little shift in Fed futures pricing during the day - and they still show just over an 80% chance of a rate cut next month. With Fed meeting minutes due later today and 20-year bonds under the hammer too, Treasury yields were flat and the dollar firmer. An unexpected pick-up in housing starts in July was reported on Tuesday but this was offset by a drop in building permits to five-year lows. * Tech-heavy stock indexes overseas were hit by Wall Street's wobble, with Japan's Nikkei losing 1.5% and South Korea's Kospi down 0.7%. Lifted on Tuesday by Ukraine deal hopes, European stocks were flatter today, with euro inflation coming in bang on forecast and a hotter-than-expected UK inflation reading downplayed due to seasonal airfare skews. Chinese stocks outperformed, with the Shanghai main index rallying to 10-year highs, as investors rotated stock holdings and hoped for more government stimulus. Be sure to check out today's column, which looks at a particular dilemma facing the Fed: should it ease to offset weakness in the housing market if that means spurring the blistering AI infrastructure boom? Today's Market Minute * U.S. and European military planners have begun exploring post-conflict security guarantees for Ukraine, U.S. officials and sources told Reuters on Tuesday, following President Donald Trump's pledge to help protect the country under any deal to end Russia's war. * Alongside a massive build-up in conventional military firepower, China has embarked on a rapid and sustained increase in the size and capability of its nuclear forces, according to the U.S. military and arms control experts. * British inflation hit its highest in 18 months in July when it increased to 3.8% from 3.6% in June, official data showed on Wednesday, once again leaving the country with the biggest price growth problem amongst the world's big rich economies. * A glaring mismatch between benchmark oil prices and expectations of a looming supply overhang has created an imbalance that could end badly for traders, writes ROI energy columnist Ron Bousso. * Trump has faced little opposition in his drive to rip up the global economic rule book. The only exception has been "the market". But now even investors are holding their fire, claims ROI markets columnist Jamie McGeever, enabling more risk to build up in the financial system. Chart of the day Americans are deeply concerned over the prospect that advances in artificial intelligence could put swaths of the country out of work permanently, according to a new Reuters/Ipsos poll. The six-day poll, which concluded on Monday, showed 71% of respondents said they were concerned that AI will be "putting too many people out of work permanently." Today's events to watch * Federal Reserve meeting minutes released (2:00 PM EDT); Board Governor Christopher Waller and Atlanta Fed President Raphael Bostic speak * U.S. corporate earnings: Target, Nordson, TJX, Lowe's, Estee Lauder, Progressive, Analog Devices * U.S. Treasury sells $16 billion of 20-year bonds Want to receive the Morning Bid in your inbox every weekday morning? Sign up for the newsletter here. You can find ROI on the Reuters website, opens new tab, and you can follow us on LinkedIn, opens new tab and X., opens new tab Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, opens new tab, is committed to integrity, independence, and freedom from bias.
Reuters
14 minutes ago
- Reuters
Ukraine's Zelenskiy says Russia struck gas distribution station in Odesa region
KYIV, Aug 20 (Reuters) - Russia struck a gas distribution station in the southern Ukraine region of Odesa on Wednesday, Ukrainian President Volodymyr Zelenskiy said, adding this showed the need to put economic pressure on Russia amid current U.S. efforts to end the war. "All of these are demonstrative strikes that only confirm the need to put pressure on Moscow, the need to impose new sanctions and tariffs until diplomacy is fully effective," Zelenskiy wrote on X. Zelenskiy did not specify how important the gas station is. Local authorities did not report any problems with gas supplies in the region. Ukraine uses gas not only for industrial needs, but also for heating homes and cooking. The Russian Defence Ministry confirmed the attack on what it said was port infrastructure "used to supply fuel to Ukrainian forces". In recent weeks, Russian forces have intensified attacks on gas and energy infrastructure, attacking a gas interconnector with Romania and fuel depots in several regions in early August. Ukraine has called on Baku to respond to Russian attacks on assets of Azerbaijani state-owned company SOCAR in the Odesa region. Ukrainian authorities say that Russia is trying to disrupt Ukraine's preparations for the winter heating season with its attacks. Ukraine has faced a serious gas shortage since a series of devastating Russian missile strikes this year, which significantly reduced domestic production. Ukrainian forces have also stepped up attacks on Russia's energy infrastructure, a key conduit for generating money for Kremlin's war efforts. Oil is once again flowing to Hungary and Slovakia via the Druzhba pipeline, officials from both countries said late on Tuesday, after a Ukrainian drone strike on an oil pumping station in Russia's Tambov region halted supplies.
