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Yahoo
31-03-2025
- Business
- Yahoo
‘Frustration and Fatigue' Hit Stock Traders in Run-Up to Tariffs
(Bloomberg) -- The Trump administration's mixed messaging on what new tariffs will be unveiled Wednesday and how they'll be announced have equities traders flustered as they try to position around the biggest risk confronting the market in years. Gold-Rush Fever Returns to Historic New Zealand Mining Town What Frank Lloyd Wright Learned From the Desert Bank Regulators Fight for Desks as OCC Returns to New York Tower 'The best way to summarize this trading environment is frustration and fatigue,' said Joe Gilbert, portfolio manager at Integrity Asset Management. 'We don't really have a clear playbook on how to proceed.' Stocks swung wildly Monday, with the S&P 500 Index falling as much as 1.7% early on before clawing that back and inching into the green in afternoon trading in New York. The broad equities benchmark is on track for its worst quarter since 2022, as investors brace for President Donald Trump to present his plan for sweeping global tariffs in two days. Exactly what that will look like remains a mystery. He's promised levies on all US trading partners, floated some breaks on certain products or countries, and mulled aiding some domestic industries. The setup is confounding Wall Street, forcing many traders to ditch positions, sell risk for the relative security of sectors that historically perform well in a recession, or flee stocks altogether. 'We've gone from a mindset of focusing on greed and how much money can I make to a mindset of fear and how much money can I lose. And it's definitely been an emotional change for traders,' said Carley Garner, senior strategist and founder of DeCarley Trading. 'Our clients aren't panicking quite yet, but if stocks bounce back and we start cracking down and making new lows again here in the next couple of weeks, I think panic will set in.' When Trump was elected, investors expected him to talk loudly about trade. But they also expected him to pull his punches, like in his first term, as he used the S&P 500 as his scorecard. But things have changed. Trump now says he isn't watching the market and seems unfazed by creating short-term pain, even if it sends the US economy into a tailspin. 'You Can't Price It' Larry Fink, chief executive officer of BlackRock Inc., touched on the backdrop in a recent letter to clients. 'I hear it from nearly every client, nearly every leader—nearly every person—I talk to: They're more anxious about the economy than any time in recent memory,' he wrote, adding that he understands why. 'But we have lived through moments like this before. And somehow, in the long run, we figure things out.' Still, there's no way to avoid the current market meltdown. Many traders have moved away from risk because the downside is too strong. 'Clearly traders are already exhausted, and what makes it mentally harder for risk takers is that this uncertainty is very different from risk because you can't price it,' said Frank Monkam, head of macro trading at Buffalo Bayou Commodities. 'If you know someone's going to punch you, and the punch is coming, you brace for it and you are ready. But what's happening right now, nobody really saw any of this is coming.' To make conditions more challenging, even if you think that Trump's trade policies will ultimately benefit the US economy, there's a decent chance things will get worse first. Yes, Trump's April 2 strategy should alleviate some uncertainty. But his tariffs are likely to damage the US economy and hit consumers with higher prices at a precarious moment. 'Trump's so-called liberation day may feel more like a sentencing day for traders and CEOs alike, as they wait to hear just how tough tariffs may get,' said Max Gokhman, deputy chief investment officer at Franklin Templeton Investment Solutions. Even so, some investors are betting on longer-term gains. Trump's levies are supposed to raise tax revenue to close the federal budget deficit, fund another round of tax cuts, and encourage US companies to reshore manufacturing. If you expect that to happen, you also want to be around for the liftoff. 'Surprisingly, a fair amount of clients are still waiting for the good part of all of this to happen,' Gilbert said. 'There's still a glimmer of optimism. But the unfortunate part of it is we don't know exactly how much damage will have already been done before good things happen.' Trump Put Hopes Some Wall Street pros are hoping that Wednesday ends up being the so-called Trump Put, with the president signaling a win and releasing some of the pressure weighing on the stock market. 'Most politicians don't want to self-immolate,' said Rhys Williams of Wayve Capital Management. 'This strikes me as what's happening. I doubt he does a complete 180 turn, but potentially Wednesday could be better than feared.' Of course, the risk is the impact of tariffs could be far-reaching. For example, continued pressure on US companies and consumers could hit earnings reports in the back half of the year, cutting into the biggest driver of stock market momentum. In addition, the big tech shares that were the highest flyers in previous years, may be under additional pressure, according to Bloomberg Intelligence. 'Mega-cap US tech may be at considerable risk, with extremely high valuations and assumptions that margin moats will remain intact,' Gina Martin Adams, Bloomberg Intelligence's director of equity strategy and chief equity strategist, wrote in a note on Monday. 'Companies with high facilities exposure and elevated cost of goods sold outside the US face the greatest direct threats in the short run, while those with elevated revenue exposure are not immune.' The pressure on these stocks marks a key difference from other recent downturns, when the the so-called Magnificent Seven group were considered havens, powering returns and posting strong earnings regardless of what was happening around them. With the group down more than 17% to start the year, now may seem like a decent time to snag some of those shares a discount, the risk is rather than buying a dip, investors are trying to catch a falling knife. 'Do I wish I'd sold everything on January 22nd?' Williams asked rhetorically, referring to the S&P 500's post-inauguration rally. 'The answer is yes.' --With assistance from Anya Andrianova. (Updates stock moves throughout) Trump's IRS Cuts Are Tempting Taxpayers to Cheat Google Is Searching for an Answer to ChatGPT LA Fire Victims Are Betting on a Radical Idea to Help Them Rebuild Israel Aims to Be the World's Arms Dealer How a US Maker of Rat-Proof Trash Bins Got Boxed in by Trump's Tariffs ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
31-03-2025
- Politics
- Yahoo
Business Suffers in Zimbabwe's Major Cities Amid Call for Protests
(Bloomberg) -- Zimbabwe's capital Harare and its second city Bulawayo were quiet on Monday despite calls for protests against the southern African nation's leader. Gold-Rush Fever Returns to Historic New Zealand Mining Town What Frank Lloyd Wright Learned From the Desert Bank Regulators Fight for Desks as OCC Returns to New York Tower These US Bridges Face High Risk of Catastrophic Ship Strikes Charter Schools, Colleges Push Muni Debt Distress Near Record The police stepped up security in the city centers while assuring the public in a statement on X that people should 'feel free to embark on their day-to-day activities.' The protests were called by opponents of President Emmerson Mnangagwa over suspicions that he is planning to extend his rule after his current term ends in 2028, despite repeated assurances that this isn't the case. Anger has also been fermented by years of economic mismanagement and sky-high inflation that has collapsed a series of domestic currencies and driven most people to conduct business in dollars. Mnangawa's supporters passed a resolution at a ruling party conference in October that he stay in power. 'Mnangagwa insists he is a constitutionalist and will step down in 2028. But few believe him because he has done nothing to cancel,' the resolution, Peter Fabricius, a consultant at the Institute for Security Studies in Pretoria, wrote in a March 28 note. First Vice President Constantino Chiwenga, who with Mnangagwa led a military takeover to oust long-time ruler Robert Mugabe in November 2017, is seen as the next in line to become president. That's nurtured speculation he quietly supports the protest call. The government has denied a rift exists between the two men. Sign up for the twice-weekly Next Africa newsletter for the latest business and economic news from the continent. Trump's IRS Cuts Are Tempting Taxpayers to Cheat Google Is Searching for an Answer to ChatGPT Israel Aims to Be the World's Arms Dealer Business Schools Are Back How a US Maker of Rat-Proof Trash Bins Got Boxed in by Trump's Tariffs ©2025 Bloomberg L.P.
Yahoo
31-03-2025
- Business
- Yahoo
Conservatives Pitch Canada ‘Energy Corridor' to End US Reliance
(Bloomberg) -- Conservative Leader Pierre Poilievre vowed to fast-track approvals for necessary infrastructure to transport Canadian energy domestically and abroad without going through the US. Gold-Rush Fever Returns to Historic New Zealand Mining Town What Frank Lloyd Wright Learned From the Desert Bank Regulators Fight for Desks as OCC Returns to New York Tower These US Bridges Face High Risk of Catastrophic Ship Strikes Charter Schools, Colleges Push Muni Debt Distress Near Record A Conservative government would create a so-called national energy corridor through which companies could build transmission lines, railways and pipelines, according to a statement from Poilievre's campaign Monday. Provincial and local governments would provide 'legally binding commitments' allowing companies to use the corridor, the party said, without outlining what steps the federal government would take if those other levels of government refused to do so. 'This means investors will no longer face the endless regulatory limbo that has made Canadians poorer,' Poilievre said in a statement. 'It will bring billions of dollars of new investment into Canada's economy, create powerful paychecks for Canadian workers, and restore our economic independence.' It's the latest pledge from Poilievre, who's trying to rebuild momentum for his campaign ahead of a general election on April 28. His chief rival, Liberal Prime Minister Mark Carney, is enjoying a surge of support amid US President Donald Trump's tariff and annexation threats. Last year, Canada exported nearly all of its crude oil to the US. Poilievre has blamed the Liberal government for restricting Canadian energy projects, leaving the country dependent on its southern neighbor. A key plank of the Conservative platform is to scrap a law banning new pipelines and boost resources production. The Liberal government financed the expansion of the Trans Mountain pipeline, Canada's only crude oil pipeline that goes to an ocean port, allowing for more exports to Asia. The larger line entered service last year. The Liberals, who are now leading in opinion polls, on Friday pitched similar plans to diversify Canadian trade away from the US. A so-called Trade Diversification Corridor Fund would spend C$5 billion ($3.5 billion) to accelerate construction of ports, railroads, highways and airports. Trump's IRS Cuts Are Tempting Taxpayers to Cheat Google Is Searching for an Answer to ChatGPT Israel Aims to Be the World's Arms Dealer Business Schools Are Back How a US Maker of Rat-Proof Trash Bins Got Boxed in by Trump's Tariffs ©2025 Bloomberg L.P.
Yahoo
31-03-2025
- Business
- Yahoo
Conservatives Pitch Canada ‘Energy Corridor' to End US Reliance
(Bloomberg) -- Conservative Leader Pierre Poilievre vowed to fast-track approvals for necessary infrastructure to transport Canadian energy domestically and abroad without going through the US. Gold-Rush Fever Returns to Historic New Zealand Mining Town What Frank Lloyd Wright Learned From the Desert Bank Regulators Fight for Desks as OCC Returns to New York Tower These US Bridges Face High Risk of Catastrophic Ship Strikes Charter Schools, Colleges Push Muni Debt Distress Near Record A Conservative government would create a so-called national energy corridor through which companies could build transmission lines, railways and pipelines, according to a statement from Poilievre's campaign Monday. Provincial and local governments would provide 'legally binding commitments' allowing companies to use the corridor, the party said, without outlining what steps the federal government would take if those other levels of government refused to do so. 'This means investors will no longer face the endless regulatory limbo that has made Canadians poorer,' Poilievre said in a statement. 'It will bring billions of dollars of new investment into Canada's economy, create powerful paychecks for Canadian workers, and restore our economic independence.' It's the latest pledge from Poilievre, who's trying to rebuild momentum for his campaign ahead of a general election on April 28. His chief rival, Liberal Prime Minister Mark Carney, is enjoying a surge of support amid US President Donald Trump's tariff and annexation threats. Last year, Canada exported nearly all of its crude oil to the US. Poilievre has blamed the Liberal government for restricting Canadian energy projects, leaving the country dependent on its southern neighbor. A key plank of the Conservative platform is to scrap a law banning new pipelines and boost resources production. The Liberal government financed the expansion of the Trans Mountain pipeline, Canada's only crude oil pipeline that goes to an ocean port, allowing for more exports to Asia. The larger line entered service last year. The Liberals, who are now leading in opinion polls, on Friday pitched similar plans to diversify Canadian trade away from the US. A so-called Trade Diversification Corridor Fund would spend C$5 billion ($3.5 billion) to accelerate construction of ports, railroads, highways and airports. Trump's IRS Cuts Are Tempting Taxpayers to Cheat Google Is Searching for an Answer to ChatGPT Israel Aims to Be the World's Arms Dealer Business Schools Are Back How a US Maker of Rat-Proof Trash Bins Got Boxed in by Trump's Tariffs ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
31-03-2025
- Business
- Yahoo
Netanyahu Names New Intelligence Chief, Challenging Court
(Bloomberg) -- Israel named former naval commander Eliyahu Sharvit as the new head of the country's domestic-intelligence agency after Prime Minister Benjamin Netanyahu dismissed his predecessor over a series of disputes. Gold-Rush Fever Returns to Historic New Zealand Mining Town What Frank Lloyd Wright Learned From the Desert Bank Regulators Fight for Desks as OCC Returns to New York Tower These US Bridges Face High Risk of Catastrophic Ship Strikes Charter Schools, Colleges Push Muni Debt Distress Near Record Sharvit is set to lead the Shin Bet after 36 years serving in the Israeli military, a statement from Netanyahu's office said on Monday. The appointment still requires full cabinet approval and needs to be signed off by a public integrity commission. Netanyahu fired Ronen Bar, the previous holder of the post, earlier this month after disagreements over who should be held responsible for failing to prevent the October 2023 attack by Hamas that triggered the war in Gaza. The duo also clashed over hostage negotiations and a probe about links between the prime minister's aides and Qatar. Netanyahu was supposed to wait until an April 8 court hearing over Bar's dismissal before appointing a new head of the Shin Bet, so the swift appointment of Sharvit could exacerbate domestic tensions. Thousands of Israelis have taken to the streets in recent weeks to protest against Bar's firing, as well as challenges to the independence of the judiciary and the return to fighting Hamas after a ceasefire. Israel's attorney general, who's also in the process of being ousted by Netanyahu's cabinet, opposed Bar's firing. The turmoil triggered the biggest losses in Israeli markets since the Oct. 7 attacks by Hamas, which is designated a terrorist organization by the US and European Union. Conflict of Interests Multiple petitions were submitted to the High Court following Bar's dismissal, claiming that Netanyahu had a conflict of interest because of a Shin Bet inquiry into several of his close aides. Benny Gantz, a leader of the opposition, praised Sharvit's experience but said on X that it's clear 'Netanyahu has decided to continue his campaign against the judiciary and lead the State of Israel toward a dangerous constitutional crisis.' Some legal experts, however, say that line hasn't been crossed given Sharvit's appointment hasn't been confirmed. And the former military man isn't likely to be seen as the ultra-loyalist replacement for Bar that some feared, according to Amichai Cohen, a senior fellow at Israel's Democracy Institute, whose expertise is constitutional law and security. 'By announcing the identity of someone who enjoys wide consensus, the concern over the prime minister appointing a mere loyalist has dissipated,' he said. Israeli Heritage Minister Amichai Eliyahu, from the far right of Netanyahu's ruling coalition, opposed the appointment, saying Sharvit, like Bar, shares the views of anti-government protestors and 'won't solve the problem.' Under Bar, the Shin Bet started an investigation into allegations that aides to Netanyahu were working with Qatar to bolster the Gulf state's image, possibly risking state secrets. Netanyahu's office has denied the accusations. The Israeli police, who are jointly handling the investigation with the Shin Bet, said Monday it had made two arrests, the first since the probe officially started several weeks ago. Oct. 7 Attack Netanyahu's appointment of a new Shin Bet chief may help him distance himself from blame for the Oct. 7 attack, said Cohen. 'Ronen Bar was very motivated to place some of the responsibility for the Oct. 7 attacks on the political echelon, and this was evident in the recently published Shin Bet inquiries,' he said. 'It's possible that a new chief, who was not in any official role during the attack, will place greater emphasis moving the organization forward and less on the question of past responsibility.' Netanyahu has refuted calls to establish a state commission of inquiry into Oct. 7 and has largely refrained from claiming personal responsibility. About 1,200 people were killed and 250 abducted in the attack, while more than 50,000 Palestinians have been killed in the subsequent conflict, according to the Hamas-run health ministry in Gaza. While serving as Israel's naval commander, Sharvit 'led the construction of the maritime defense force in the economic waters and managed complex operational systems against Hamas, Hezbollah, and Iran,' the statement from Netanyahu's office said. Iran sponsors Hamas as well as Hezbollah, a Lebanon-based militant group, which is also designated a terrorist organization by the US. If confirmed, Sharvit will be the first Shin Bet chief in three decades who did not come from within the service. The last time the intelligence service had an outsider as head was in 1996, after the Shin Bet failed to prevent the assassination of the Israeli Prime Minister Yitzhak Rabin. (Updates with detail and context throughout) Trump's IRS Cuts Are Tempting Taxpayers to Cheat Google Is Searching for an Answer to ChatGPT Israel Aims to Be the World's Arms Dealer Business Schools Are Back How a US Maker of Rat-Proof Trash Bins Got Boxed in by Trump's Tariffs ©2025 Bloomberg L.P.
