Latest news with #China-specific
Yahoo
2 days ago
- Business
- Yahoo
Scott Bessent says U.S.-China trade negotiations are 'stalled'
U.S. Treasury Secretary Scott Bessent said Thursday that trade negotiations with China are 'a bit stalled,' just weeks after both sides declared a 90-day tariff truce. In an interview with Fox News (FOXA), Bessent suggested that actual progress may hinge on a direct call between President Trump and Chinese President Xi Jinping. 'Given the magnitude of the talks… this is going to require both leaders to weigh in,' he said. The comments underscore how quickly optimism over the May breakthrough has faded and the ongoing policy whiplash making it difficult for investors and business leaders to tell which way is up. The temporary truce had seen both countries drastically slash reciprocal tariffs — cutting U.S. rates on Chinese goods from 145% to 30%, and Chinese tariffs from 125% to 10% — in what Bessent described as a shared effort to avoid 'de facto economic decoupling.' To recap: On Wednesday of this week, the U.S. Court of International Trade ruled that many of Trump's tariffs were unlawfully enacted, threatening to roll back large portions of his trade agenda, including aspects of his China-specific initiatives. Then, on Thursday, a federal appeals court issued a temporary stay, allowing the tariffs to remain in place while it reviews the case. The administration now has until June 9 to make its arguments, with the White House vowing to escalate the battle all the way to the Supreme Court if needed. Trump officials have also hinted at fallback plans, including using Section 122 of the Trade Act of 1974 to impose temporary tariffs of up to 15%. Despite interest from other trade partners like India and the EU to move forward on sector-specific deals, the U.S.-China dialogue necessarily remains the centerpiece of any breakthrough. That's no surprise, given that the U.S. and China are the world's two largest economies and each other's biggest trading partners. Their negotiations are uniquely consequential for global supply chains, inflation, and investor confidence. For now, those negotiations are once again at a stand still. The tariff pause remain in effect, but investors may once again be asking whether this latest 'reset' hints at yet another behind-the-scenes setback. For businesses, it's more whiplash, too. The sudden tariff pause, their near-immediate reinstatement, the legal uncertainty, and now a stalled negotiation process have left many unsure whether to restock, retreat, or hold the line. According to data released just yesterday by the Conference Board, a whopping 83% of CEOs now expect a recession within the next 12 to 18 months. 'CEO Confidence collapsed in Q2 2025 after surging in Q1,' said Stephanie Guichard, a senior economist at The Conference Board. 'All components of the Measure weakened into pessimism territory. CEOs' views about current economic conditions led the plunge, registering the largest quarter-on-quarter decline in almost 50 years.' For the latest news, Facebook, Twitter and Instagram.
Time of India
4 days ago
- Business
- Time of India
South Korea central bank cuts interest rates amid growing pressure from Trump's tariff war
Rhee Chang-yong (Photo credit: AP) South Korea's central bank lowered interest rates on Thursday to support its export-driven economy amid growing pressure from US President Donald Trump's tariff war. The bank also sharply cut its annual growth forecast, citing rising global uncertainties. The Bank of Korea decreased its key interest rate "from the current 2.75 per cent to 2.5 percent" and revised its economic growth forecast to 0.8 percent for the year, down from its February projection of 1.5 percent. The fourth-largest Asian economy showed lower-than-anticipated growth in the first quarter as the nation, known for its exports and semiconductor industry, struggled with domestic political instability and increased trade conflicts. The interest rate reduction, previously indicated in April by bank governor Rhee Chang-yong, brings lending rates to their lowest point since October 2022. "All six members of the Monetary Policy Board, excluding the governor, expressed the view that the door should be left open to a possible rate cut within the next three months," Rhee stated last month. "Given what we've seen so far from the Trump administration's tariff policy, including reciprocal tariffs, China-specific tariffs, itemised duties, and a baseline 10 percent rate, the growth outlook scenario released in February now appears overly optimistic," he added. The nation's export-oriented economy has suffered significantly from Trump's 25 percent tariffs on automobiles implemented in early April. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Business Times
4 days ago
- Business
- Business Times
South Korea central bank cuts rate, slashes 2025 growth forecast
[SEOUL] South Korea's central bank cut interest rates on Thursday in a bid to cushion the export-dependent economy from US President Donald Trump's tariff war, as it almost halved its annual growth forecast. The Bank of Korea lowered its benchmark interest rate 'from the current 2.75 per cent to 2.5 per cent' and said it predicted the economy to expand 0.8 per cent this year, down from the 1.5 per cent projected in February. Asia's fourth-largest economy grew less than expected in the first three months of the year as the export giant and semiconductor powerhouse reeled from political chaos at home and heightened trade tensions. The rate cut, which was flagged in April by bank governor Rhee Chang Yong, takes borrowing costs to their lowest level since October 2022. 'All six members of the Monetary Policy Board, excluding the governor, expressed the view that the door should be left open to a possible rate cut within the next three months,' Rhee said last month. 'Given what we've seen so far from the Trump administration's tariff policy, including reciprocal tariffs, China-specific tariffs, itemised duties, and a baseline 10 per cent rate, the growth outlook scenario released in February now appears overly optimistic,' he added. The export-driven country has also been hit hard by the 25 per cent tariffs on automobiles imposed by Trump in early April. AFP
Yahoo
4 days ago
- Business
- Yahoo
Nvidia beats on earnings again — even while it's locked out of China
Nvidia (NVDA) continues to soar beyond expectations — even if things are a little more complicated this time around. Its strong first-quarter headline numbers show that Nvidia's AI thesis is as strong as ever and that its margins remain elite, despite facing significant headwinds due to U.S. export restrictions on its H20 processors to China and other geopolitical concerns. After the bell on Wednesday, the $3.3 trillion chipmaker reported $44.1 billion in revenue for the fiscal first quarter, up 69% from the same period a year ago, and the company reported a $18.78 billion profit. Analysts had forecasted a revenue surge to $43.26 billion. The H20 restrictions led to a $4.5 billion write-down related to excess inventory and a $2.5 billion revenue shortfall, affecting the company's gross margins. Adjusted earnings per share came in at $0.81, ahead of Wall Street estimates of $0.75. Nvidia took a $4.5 billion charge related to exports of its H20 chips to China; without that charge and the related tax impact, first quarter non-GAAP diluted earnings per share would have been $0.96. Stock soared over 5% in after-hours trading. With demand for generative AI infrastructure still booming and competitors struggling to catch up, Nvidia's performance exceeded expectations. In a Tuesday note, Wedbush analysts led by Dan Ives said that Nvidia's earnings would likely be a 'bright green light' for the tech sector — especially companies heavily invested in the 'AI Revolution.' And it was. The company's Data Center division brought in an almost unreal $39.1 billion in the first quarter, up 10% from the previous quarter and up 73% from a year ago. That means Nvidia's fastest-growing segment is now responsible for nearly 89% of all revenue — a sign of how deeply embedded its chips are in the AI build-out. Analysts had expected this division to generate $21.27 billion in Q1 revenue. Looking ahead, Nvidia projects Q2 revenue around $43 billion, slightly below Q1 figures, with gross margins expected to remain in the low 70% range. In his note, Ives wrote that, over the past several years, Nvidia's set-up has been about by how much the company would beat Wall Street's expectations, but this quarter, the earnings were 'more about strong numbers and the ability to maintain guidance despite the China blockade. Investors are more laser focused on the medium term and long-term outlook.' Nvidia has long relied on the Chinese market for a sizable chunk of its revenue, but that has changed dramatically in the wake of tightening U.S. export controls and tariffs. To maintain its foothold, Nvidia is pursuing R&D efforts in Shanghai and developing China-specific downgraded chips that comply with current restrictions. The company is ground zero in the U.S.-China tech rivalry — its GPUs might just be the most valuable components in the AI arms race, and its position is increasingly shaped by policy, not just engineering. Nvidia has beat analysts' earnings expectations in 14 of the past 16 quarters. So can anything slow Nvidia down? Maybe. Competition is heating up. AMD (AMD) and Intel (INTC) are sharpening their AI chip offerings, while hyperscalers are continuing to invest in custom silicon. And export restrictions remain a geopolitical wild card. Still, as the first-quarter earnings show, Nvidia's moat is wide. Its software ecosystem, deep relationships with cloud providers, and product cadence make it more than just a chipmaker. It's the AI era's platform company. For the latest news, Facebook, Twitter and Instagram.
Yahoo
4 days ago
- Business
- Yahoo
Nvidia (NVDA) Gets $150 Price Target as Piper Sandler Urges Investors to Stay Long
We recently published a list of . In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other AI stocks gaining Wall Street's attention. One of the biggest analysts calls on Tuesday, May 27, was for Nvidia Corporation. Piper Sandler reiterated the stock as 'Overweight' with a $150 price target. The firm said it's sticking with the stock ahead of earnings on Wednesday. NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services. Analyst Harsh Kumar expects NVIDIA to witness a flat to downward trend leading up to its earnings report, which is scheduled for tomorrow. Some reasons for the potential revenue shortfalls in the April quarter are macroeconomic uncertainties and the H20 chip ban. There is also the news of a new China-specific chip, anticipated towards the end of the July quarter. A close-up of a colorful high-end graphics card being plugged in to a gaming computer. The said chip may influence the company's guidance for July. Despite these near-term challenges, Kumar is optimistic about the latter half of the year on the back of strong high-performance computing (HPC) capital expenditure and improving macroeconomic conditions. The firm advises investors to stay optimistic about NVIDIA's long-term performance despite short-term headwinds. 'We advise investors to weather the uncertainty and stay long the stock as this is likely largely the last wave of negative news for NVDA this year. Reiterate OW rating.' Overall, NVDA ranks 2nd on our list of AI stocks gaining Wall Street's attention. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
