Beijing's anti-involution push won't be too drastic as it could lead to higher unemployment
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CNBC
16 hours ago
- CNBC
Beijing's anti-involution push won't be too drastic as it could lead to higher unemployment
Kelvin Tay from UBS Global Wealth Management CIO says China's involution phenomenon has its cultural root in the Confucianism and addressing the issue would take time and a fine balance given the social implications.
Yahoo
01-08-2025
- Yahoo
Global stocks drop as Trump unveils his tariffs
Stocks across the globe were lower Friday after President Donald Trump unveiled his plan for levying tariffs on trading partners, threatening to upend decades of international cooperation. The Dow tumbled 665 points, or 1.5%. The broader S&P 500 fell 1.87% and the tech-heavy Nasdaq Composite slipped 2.5%. The S&P 500 and Nasdaq were on track for their biggest single-day losses since April. The Dow was on track for its biggest drop in over one month. The blue-chip index fell every day this week as Trump's tariffs have come back into focus. Trump late Thursday released his long-awaited plan for tariffs on US trading partners. The president laid out tariffs ranging from 10% to 41% on countries from Chile to Syria, set to take effect August 7 — which was later than expected. Investors in recent months have begun to try and look past Trump's tariffs, betting the president will back down on his most daunting threats. As the president has tempered his approach — including once again delaying the start of tariffs — markets have tried to adjust to the prospect of a more protectionist global order. But the scope and unprecedented nature of the tariff campaign portends to roil the global economy and markets. 'Our base case remains that the US effective tariff rate should settle at around 15% by the end of the year, and the economic impact is likely to prove manageable,' Ulrike Hoffmann-Burchardi, global head of equities at UBS Global Wealth Management, said in a note. 'Still, tariffs are a headwind for global trade and growth, and they have started to contribute to a rise in inflation,' Hoffmann-Burchardi said. 'With markets already pricing in much of the good news on the trade front, we expect stock volatility to pick up in the near term.' Stocks took a step lower and Treasury bonds rallied Friday morning after the latest jobs data showed the US economy added 73,000 jobs in July, which was less than expected. The 10-year and 30-year Treasury yields fell to 4.23% to and 4.81%, respectively, as investors snapped up bonds in a flight to safety and to lock in high rates. Meanwhile, the US dollar dropped. The dollar index, which measures the dollar's strength against six major foreign currencies, fell 0.85%. Gold, a safe haven during uncertainty, rallied 1.5%. 'The stock market will probably move past this particular report and keep climbing this month, but today could be an ugly day in the market given the confluence of new tariff announcements and more evidence that the job market is slowing,' Chris Zaccarelli, chief investment officer at Northlight Asset Management, said in an email. European stocks posts worst day since April US stocks on Friday followed stocks in Europe and Asia lower. Europe's benchmark Stoxx 600 index sank 1.89%, while Germany's DAX index and France's CAC 40 index dropped 2.66% and 2.91%, respectively. Each of the indexes posted their biggest single-day loss since early April. In Asia, markets were modestly lower. Hong Kong's Hang Seng index dropped 1.07%, Japan's Nikkei 225 fell 0.66% and Taiwan's benchmark index sank 0.46%. 'Today is merely the next episode in Trump's tariff story – it's unwelcome, hence the market dip; but it's not entirely unexpected, hence the lack of a full market crash,' Russ Mould, investment director at AJ Bell, said in a note. Global markets turned lower as Trump announced his tariff plans, although losses so far were relatively contained compared to the intense turmoil of early April when there was an unusual and simultaneous sell-off in US stocks, bonds and the dollar. 'While the dollar sell-off in April included a degree of shock and surprise that wont be replicated now, we would still conclude tariffs as ultimately dollar negative over time as it hits real growth, lowers real yields and will encourage portfolio diversification,' Derek Halpenny, head of research for global markets at MUFG, said in a note. Stock market rally faces major tariff test Investors have been gearing up for Trump's long-awaited tariff plan. Stocks had been on a steady climb higher in recent months, but the momentum began to stall in July. The S&P 500 rose just over 2% in July after climbing 6% in May and 5% in June. Many investors have embraced the 'TACO' trade, betting that 'Trump always chickens out' on his biggest tariff threats. That trade has also faced hiccups, though, as the president has pressed forward with high levies on goods like steel and aluminum. 'Tariff worries are back in focus, and even though the market has remained resilient, we are still in a headline-sensitive market,' Glen Smith, chief investment officer at GDS Wealth Management, said in an email. While investors are concerned about the prospect of tariffs, they might also want to wait and see evidence of the impact on inflation or the labor market in the economic data, Zachary Hill, head of portfolio management at Horizon Investments, said. And while Wall Street is fixated on tariffs, corporate earnings were also impacting the market. Shares in Amazon (AMZN) fell 8.6% on Friday after its forecast did not impress investors.
CNN
01-08-2025
- CNN
Trump announces historic new US tariffs across the globe
Update: Date: 12 min ago Title: Stock losses accelerate as Trump's tariffs weigh on markets Content: US markets took a big hit Friday morning as traders wrestled with President Donald Trump's plan for tariffs. The Dow dropped as much as 790 points, or 1.79%, before pulling back slightly and trading lower by 600 points. The benchmark S&P 500 slipped as much as 1.97% and the tech-heavy Nasdaq dropped as much as 2.6%, before pulling back slightly. The S&P 500 was on track for its worst day since May. Stocks took a step lower this morning after new data showed the economy added just 73,000 jobs in July, which was less than expected. Read more here. Update: Date: 34 min ago Title: What could get more expensive from Trump's latest round of tariffs Content: The slew of tariffs President Donald Trump announced Thursday night will make goods from impacted countries more expensive to import into the United States once they take effect. That doesn't necessarily mean consumers will immediately feel the impact because businesses tend to shoulder some of the costs. But it may speed the timeline up for when they may be forced to pass along some of the expense they're paying to consumers in the form of higher prices. The highest new 'reciprocal' tariffs announced — which go as high as 41% — aren't the most consequential, because in many cases they aren't being imposed on top countries from which America imports goods. That, of course, doesn't mean goods from places like Syria, Laos, Myanmar, which are seeing some of the highest new rates, won't get more expensive. It just means Americans might not feel it as much. Here are some of the goods that are poised to get more expensive based on new tariff rates: Update: Date: 46 min ago Title: US stocks open lower as Trump's tariffs rattle markets Content: Stocks dropped Friday morning as investors digested President Donald Trump's unveiling of tariffs on trading partners across the globe. The Dow opened lower and tumbled 600 points, or 1.4%. The broader S&P 500 fell 1.6% and the tech-heavy Nasdaq Composite slipped 2.1%. 'With markets already pricing in much of the good news on the trade front, we expect stock volatility to pick up in the near term,' Ulrike Hoffmann-Burchardi, global head of equities at UBS Global Wealth Management, said in a note. Read more on the market reaction here. Update: Date: 46 min ago Title: Trump's tariff plan is drawing a global response. Here's what people in France are saying Content: Markets were rattled by President Donald Trump's historic new tariff plan that affects virtually every nation. Hear from people in Paris on what they think about the new shift. Update: Date: 1 hr 6 min ago Title: Here's the tariff America will charge for each country's goods Content: President Donald Trump announced new tariffs on nearly every country around the world, solidifying his break with America's long-standing trade policy. Tariffs on most imported goods are set to rise — even from countries that negotiated individual trade deals. Here's a breakdown by country: Update: Date: 1 hr 42 min ago Title: The US economy added just 73,000 jobs in July, with previous monthly totals revised down sharply Content: The US job market slowed substantially in July and was much weaker than previously thought in previous months, suggesting President Donald Trump's trade policy may be forcing employers to wait on the sidelines. The US economy added just 73,000 jobs last month, and the monthly totals for May and June were revised down by 258,000 jobs, to 19,000 and 14,000, respectively, according to data released Friday from the Bureau of Labor Statistics. With those monumental revisions, job growth in June was the weakest in more than four years. Trump's 'unorthodox economic agenda and policies may be starting to make a dent in the labor market, and especially troubling was the massive downward revisions of over a quarter million jobs in May and June,' Christopher Rupkey, chief economist at FwdBonds, wrote in a note Friday. Update: Date: 1 hr 52 min ago Title: Why stocks are down Friday Content: President Donald Trump's tariffs came as no shock. If anything, Thursday's tariff announcements displayed some surprising restraint, lowering the expected tariff rates for dozens of countries. Investors have known for weeks that Friday would serve as a deadline for Trump's new trade actions. So why are stocks set to open sharply lower? 'The reality of higher tariffs is finally setting in, like getting hit in the face with a 2x4,' said Art Hogan, chief market strategist at B Riley Wealth. 'Investors had been complacent on tariffs due to the TACO trade but now have to contemplate the reality of a world with higher goods prices, and recalibrate earnings and economic growth expectations.' Wall Street created the TACO acronym for 'Trump Always Chickens Out' — a belief that Trump will ultimately bow to the will of the markets and reverse course on his most aggressive policies. But markets have been surging to record highs in recent weeks, creating a kind of chicken-and-egg problem. Hogan also noted Amazon's worse-than-expected outlook, which was probably tariff related, also contributed to the sour mood on Wall Street. And he cited a third factor: It's a summer Friday. Traders are on the beach, and volume is low, exacerbating what might otherwise be a relatively mild dip. To be sure, the market move Friday is nothing significant: The market is set to open down less than 1%. Update: Date: 2 hr 4 min ago Title: Trump's tariffs explained Content: The White House announced a new trade policy starting August 7 that affects virtually every nation as the US cemented its breakaway from decades of free trade toward a new protectionist era. A lot has happened over the last few months, and trade wars can be complicated to understand. To make things easier, CNN Business Reporter Anna Cooban explains with a very simple analogy. The White House announced a new trade policy starting August 7 that affects virtually every nation as the US cemented its breakaway from decades of free trade toward a new protectionist era. A lot has happened over the last few months, and trade wars can be complicated to understand. To make things easier, CNN Business Reporter Anna Cooban explains with a very simple analogy. #cnn #news Update: Date: 2 hr 18 min ago Title: Trump suspends tariff exemption on low-cost packages Content: The Trump administration is ditching a long-standing tax exemption for low-cost packages as part of the new tariff regime, the White House has announced Thursday. The so called 'de minimis' exception currently applies to commercial shipments worth less than $800. These can be imported to the US without taxes and complicated paperwork. According to the White House, this exemption will end on August 29 for all shipments sent outside the postal system. A threshold like this is common in many countries, although the US one is among the higher ones. For comparison, the threshold is $170 in the European Union, $177 in the UK and $70 in Japan. Update: Date: 2 hr 35 min ago Title: Transit loophole will ease tariff impacts on your wallet — for now Content: The new tariffs on US imports are set to push prices up for American consumers. But some of these increases might be more gradual thanks to a loophole that was announced by the White House alongside the new tariff rates. While the tariffs are set to come into effect on August 7, they will not apply to products that will have been in transit by then — as long as they arrive in the US by October 5, according to the White House announcement. In theory, this loophole could spark a global race to load as much cargo on container ships as possible ahead of the August 7 deadline. In practice, this is unlikely to happen because shipping routes, schedules and manifests are set long in advance. Update: Date: 2 hr 4 min ago Title: European wine makers lament the lack of tariff exemption Content: Despite intense lobbying, European wines and spirits did not make it on the list of items exempt from the new 15% tariff the US is imposing on the European Union. A framework deal struck last week by US President Donald Trump and Ursula von der Leyen, president of the European Commission, sets a 15% tariff on most imported goods from the bloc and includes EU commitments to invest hundreds of billions of dollars in the United States and buy US energy products. The EU managed to secure some exemption from the new tariffs, including for aerospace components, some generic pharmaceuticals, semiconductor manufacturing tools and some raw materials. The US is the largest export destination for EU wines, representing 27% of EU wine exports in value and 21% in volume, according to CEEV, a trade association that represents some 7,000 European wine companies. COPA-COGECA, two organizations representing national associations of farmers and cooperatives across Europe, called the lack of exemption for wines and other agricultural products 'disheartening.' Update: Date: 2 hr 13 min ago Title: Syria, Laos and Myanmar are the biggest losers of Trump's announcement. Why? Nobody knows Content: At 41%, Syria is facing the highest tariff rate of all, followed closely by Myanmar and Laos, which are bracing for 40% tariffs. The White House did not provide any explanation on how the new tariffs were calculated or why these three countries were facing particularly punishing rates – especially since they all have very limited trading relationship with the US. The harsh tariffs imposed on Syria come just as the US started lifting its long-term economic sanctions against the country following December's collapse of the al-Assad regime. Years of war and sanctions have decimated Syria's economy. Trade with the US is almost non-existent. Myanmar, a Southeast Asian nation that has been embroiled in civil war following a military coup in 2021, is also under US sanctions, although the Trump administration lifted some of these last week – much to the dismay of human rights experts. Update: Date: 4 hr 10 min ago Title: New tariffs "not the end of the story," economists say Content: Capital Economics, a British-based consultancy, said it is expecting the rollercoaster of tariff announcements to continue even after Thursday's announcement. 'This is unlikely to be the final word, as it still seems likely that some other countries will reach their own deals with the US, while there is a chance that the US courts will eventually strike down these tariffs,' Stephen Brown, Capital Economics' deputy chief North America economist, said in a note. The Trump administration's trade policy has been full of twist and turns since Trump returned to the White House in January. He first hiked import taxes across the board in April, during his 'Liberation Day.' The move threw financial markets into chaos and stoked fears of a global recession. Trump ultimately delayed the April tariffs hours after they took effect, later setting August 1 as the new deadline for trade agreements on pain of higher tariff rates. That deadline expired on Friday – but Trump once again extended it, saying that most of the tariffs won't go into effect until August 7. Update: Date: 2 hr 19 min ago Title: It's not a good morning for importers of Swiss watches Content: Watches of Switzerland, a UK-based company that specializes in importing luxury watches to the UK and US, found itself in a particularly tight spot on Friday morning. Many of the brands Watches of Switzerland trades are — you guessed it — based in Switzerland. With the US announcing a new 39% tariff on Swiss imports, the company and its customers are facing a steep increase in costs. The company's shares plunged more than 7% on the London Stock Exchange on Friday morning. Update: Date: 4 hr 14 min ago Title: Trump's new trade policy is "bad — but it could have been even worse," US economist says Content: US President Donald Trump's new trade policy will cause a 'huge blow' to global commerce, Atakan Bakiskan, a US economist at Berenberg Bang, said in a note on Friday. His assessment of the situation: 'Bad – but it could have been even worse.' 'Most major advanced economies such as the EU, Japan and South Korea now face a US tariff of 15% on most of their export to the US. The UK, which specializes more in exports of services rather than goods than many other US trading partners, gets off more lightly with a 10% duty,' he said. Bakiskan explained that the tariffs were going to distort competition between companies that make their products in the US and sell them there and those that produce abroad. This would put US companies that produce at home at an advantage. But there is a catch. 'Many European Japanese and South Korean-based producers compete more against each other than against US-based producers in the US market. As they all face a 15% levy, the competition between them is distorted by less than would have been the case if Trump had imposed widely different country-specific US tariffs against these key advanced economies,' he said. Update: Date: 4 hr 24 min ago Title: Stocks sink sharply after Trump makes his tariff plan clear Content: For months, Wall Street investors have been clamoring for a clearer picture on trade. Now they have it, and they don't love what they see. US stock futures fell sharply Friday morning, pulled lower by the White House's plan for higher tariffs and the threat of more to come — particularly those targeting foreign pharmaceuticals. Dow futures were 400 points lower, or 0.9%. The Dow had been on the precipice of an all-time record just a few days ago but has fallen for four straight days since. S&P 500 futures fell 0.9% and the Nasdaq was 1% lower. US crude, which has been on the rise over the course of the week, fell 0.4% to $69 a barrel. Weak crude prices have indicated investors' fears that higher tariffs could cut into demand for oil. The dollar fell 0.2%, continuing its sharply downward trend that began when President Donald Trump introduced his new tariff regime in January. And bond yields rose, as investors sold off Treasuries out of fear that tariffs could weaken the US economy. Update: Date: 4 hr 30 min ago Title: South Africa braces for the highest tariffs on the continent Content: At 30%, South Africa is facing the highest tariffs on goods exported to the US from Southern Africa. Algeria and Libya are also facing a 30% tariff, with these three countries facing the steepest tariffs on the continent. South Africa was hoping to strike a deal with the Trump administration to lower the tariffs, submitting new proposals this week. But no agreement has been reached. The tariffs, due to come into effect next week, could have potentially disastrous consequences for the South African economy. The South African Reserve Bank, the country's central bank, warned the levies could cost the country 100,000 jobs, especially in the automotive sector and in agriculture. South Africa's President Cyril Ramaphosa said in a statement on Friday that the talks with the US would continue, stressing that his country believes negotiations are the best way forward. 'South Africa and US trade relations are complementary in nature and South African exports do not pose a threat to US industry. Importantly, SA exports to the US contain inputs from the African Continent and contribute to intra-Africa trade,' he said. Update: Date: 4 hr 52 min ago Title: African nations' failure to strike trade deal with US reflects a sobering reality Content: The United States did not a strike a single trade deal with any African country before the August 1 deadline despite frantic efforts by several officials to avoid higher tariffs. This failure to seal an agreement underscores how low on the priority list the White House places African nations — but also reflects a sobering reality. Even the continent's biggest economies are still tiny compared to America's largest trading partners like China, the European Union or Canada. The US raised tariffs to 15% for African countries with which it has a trade deficit, such as Nigeria, Angola, and Lesotho – but Algeria, Libya and South Africa were slapped with 30%. South African officials were still waiting to hear feedback from Washington on their trade proposals on Thursday night when the White House list was released. 'They were unable to give us a firm indication about what need to do to get to a decision. They suggested that we present a revised offer,' Pretoria's Trade Minister Parks Tau told SABC News after Wednesday talks with US officials. Other African nations, such as Kenya, will remain on the 10% tariff base as they attempt to strike individual trade deals. This has become more urgent, as a two-decade-old law that allowed many African nations to access the US market duty-free expires at the end of September. Few expect that it will be renewed despite longstanding support from both Democrats and Republicans. Update: Date: 5 hr 42 min ago Title: European markets open lower after Trump's latest tariff blitz Content: European stock markets fell on Friday morning after US President Donald Trump said he would hit scores of countries with new tariffs. The region's benchmark Euro Stoxx 600 index was trading down 1.2% by early morning ET, while Germany's DAX index and France's CAC 40 index were down 1.7% and 1.6% respectively. The tariff rate for the European Union came as no surprise to the 27-nation bloc. On Sunday, the EU struck a deal with the US to set a 15% tariff on most imported goods from the bloc after months of painstaking negotiations. But Switzerland — which is not an EU member — will face a shock 39% levy on its exported goods, including precious metals and luxury watches. Update: Date: 5 hr 46 min ago Title: Why some countries are celebrating their new tariff rates Content: Nations around the world are waking up to a new economic reality on Friday morning, facing new tariffs on their exports. While most countries are facing rising tariffs, some are breathing a sigh of relief after securing last-minute deals. The rates on Cambodia, Vietnam, Indonesia, Malaysia and Thailand have all been lowered substantially from initially proposed figures to 19 or 20%. Malaysia, which was facing the possibility of a 24% tariff on its exports, managed to negotiate the rate down to 19% — something its trade ministry called a 'significant achievement.' Malaysia said the deal it struck did not compromise the country's sovereignty, saying in a statement that it 'stood firm on various 'red line' items' during the 'thorough and methodical negotiating process.' Cambodia, which reached its deal with the US on Thursday, is now also facing a 19% tariff, instead of the originally announced 49%. The Cambodian Prime Minister Hun Manet on Friday said this was 'good news for the people and economy of Cambodia.'
