Bloomberg Daybreak Asia: Stocks Decline on Tariff Rate Announcement
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Yahoo
27 minutes ago
- Yahoo
Here's where Canada's effective U.S. tariff rate might stand amid carve outs
OTTAWA — Amid the many layers of tariffs and exemptions from the United States, some economists say the effective tariff rate on Canada is much lower than the headline figures suggest. RBC senior economist Claire Fan says the effective tariff rate is an average of the import duties paid on goods heading to the United States that accounts for exemptions tied to the Canada-U.S.-Mexico Agreement. While U.S. President Donald Trump ramped up blanket tariffs on Canada to 35 per cent at the start of the month, that move maintained an exemption for goods compliant with that trade pact. RBC estimates the effective tariff rate on Canadian goods is closer to six per cent today. Fan warns that the effective tariff rate offers a simple explanation for the total level of U.S. tariffs facing Canada, but it can underestimate the severity of the trade disruption. She says ongoing tariffs of 50 per cent on steel and aluminum, for example, will have an outsized impact on those sectors going forward. This report by The Canadian Press was first published Aug. 12, 2025. Craig Lord, The Canadian Press
Yahoo
27 minutes ago
- Yahoo
Allianz Life US data breach will be damaging to life and health insurance sector
The major cyberattack on Allianz Life at the end of July 2025 will be damaging to insurance due to the scale of the attack and a section of consumers' concerns around sharing personal data. Reportedly, the attack impacted the majority of Allianz Life's US customers and employees. This makes it one of the largest reported cyberattacks in insurance, as Allianz Life has around 1.4 million customers in the US. GlobalData's 2024 Emerging Trends Insurance Consumer Survey found that one of the main issues consumers have with sharing personal data is privacy concerns. Of the US consumers who would not be willing to share fitness and wellness information with their life and health insurer via an Internet of Things device, 53.8% said it was because it involved sharing too much information. Therefore, one of the most damaging aspects of this story to the wider insurance industry may be reduced trust in sharing personal data with insurers. Health and medical data is especially sensitive, which is why this will be especially damaging. Why would you not be willing to wear an activity (or biotech accessory) and sharing the results with a life or private medical insurance company? (US, 2024) The scale of this attack has made it a global news story reported not just in the insurance press but by mainstream publications such as the BBC, FT, and others. This will also raise the profile of the risk of cyberattacks for businesses, and especially insurers. GlobalData's 2025 UK SME Insurance Survey found that 26.2% of SMEs in the UK bought their cyber insurance policy owing to media reports about other businesses facing cyberattacks, while 19.3% have a policy specifically because a competitor of theirs fell victim to an attack. Overall, the story is seriously damaging for Allianz Life. It will have to pay large fines and is already facing a class action suit. The scale of the story is also likely to be damaging to the wider insurance industry in terms of consumers' willingness to share personal data. There will also be reputational damage to Allianz Life specifically, especially in the US where the incident occurred. Personal data is essential to life and health insurers to help tailor policies and improve behaviours to reduce risk. One small positive for the larger insurance industry is that it will raise awareness of the threats that even the largest and best run businesses can face, and this is a good example of why businesses should have a comprehensive cyber insurance policy in place. "Allianz Life US data breach will be damaging to life and health insurance sector" was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
27 minutes ago
- Yahoo
CPI report: Core inflation rises by most in six months, stoking tariff-driven price concerns
Inflation remained sticky in July, according to new government data released Tuesday, as investors stay alert to how much President Trump's tariffs are starting to affect consumer costs. The latest data from the Bureau of Labor Statistics showed that "core" inflation, which excludes volatile food and energy costs, rose 0.3% over the past month, surpassing June's 0.2% uptick and marking the largest gain in six months. Annual core prices rose 3.1% in July, up from June's 2.9% year-over-year increase, signaling that rising goods inflation is no longer being offset by easing services inflation. Core services prices also firmed, with shelter rising 0.2% for the second consecutive month, while transportation services and medical care services each climbed 0.8%, up from respective gains of 0.2% and 0.6% in June. Read more: July CPI breakdown: Consumers feel the crunch of accelerating inflation Heading into the report, economists expected the core Consumer Price Index (CPI) to rise 3% year over year and 0.3% month over month. On a headline basis, CPI increased 2.7% on an annual basis in July, matching June's number and slower than economists' expectations of a 2.8% rise. Month over month, prices rose 0.2% compared to June's 0.3% increase, on par with economists' estimates. The monthly drop was driven by lower gasoline prices and moderately softer food inflation. "Although core annual inflation is back to its highest level since February, today's CPI print is not hot enough to derail the Fed from cutting rates in September," Seema Shah, chief global strategist at Principal Asset Management, wrote in reaction to the report. Shah noted some evidence of tariff-related pass-through to consumers, though not yet at a level that "rings alarm bells." One example: Footwear prices jumped 1.4% in July from the prior month — the largest monthly increase since April 2021. Other categories seeing increases included furniture and bedding, recreation, household furnishings and operations, and used cars and trucks. Airline fares jumped 4% after a 0.1% decline in June, while lodging away from home and communication were among the few major indexes to fall last month, according to the BLS. Tuesday's report arrives amid ongoing trade developments that could further alter the US effective tariff rate, now hovering near 18.6% — the highest since 1933, according to the latest Yale Budget Lab estimate. Read more: What Trump's tariffs mean for the economy and your wallet The back-and-forth raises fresh questions about the Federal Reserve's rate-cutting path. Shortly following the report, investors placed a 90% probability the Fed cuts rates by 0.25% at its September policy meeting, up from 57% last month, according to the CME FedWatch Tool. Traders still expect over two rate cuts by December. "The concern for the Fed is that with inventory run-down, the tariff-induced boost to inflation is likely to grow over the coming months, meaning that inflationary pressures are likely to pick up just as the Fed starts to resume rate cuts," Shah said. "Markets like today's inflation print as it means the Fed can lower rates unheeded next month — rate cut decisions in October, December, and beyond may well be more complicated," the strategist added. Stocks rose immediately after the report, while the 10-year Treasury yield (TNX) hovered below 4.3%. Allie Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at Sign in to access your portfolio
