Latest news with #Insigneo
Bloomberg
08-04-2025
- Business
- Bloomberg
Bloomberg Daybreak Asia: China Vows Tariff Fight
Asian shares bounced back after a record selloff, as Japan lead gains on expectations that it will get priority in trade talks with US President Donald Trump's administration. China slammed the US for threatening to raise its tariffs and pledged to retaliate if Washington follows through, raising the stakes of the trade war between the world's two largest economies. We get some market perspective from Stephanie Leung, Chief Investment Officer at StashAway. On Monday, Trump threatened to slap additional 50% import taxes on China, while readying negotiations with Japan and Israel, leaving markets struggling to grasp his intentions for his sweeping tariff plans. Fears of an economic downturn led to sharp swings in US markets with the S&P 500 index nearing a bear market before finishing slightly down as investors absorbed further tariff news. We unpack the stateside reaction with Ahmed Riesgo, Chief Investment Officer at Insigneo.
Yahoo
07-03-2025
- Business
- Yahoo
Market whiplash on tariffs this week shows the limits of listening to anyone but Trump
A series of rapid-fire tariff developments this week left markets on edge in part because of sharp shifts from Trump but also conflicting signals from his top advisers about what the president planned to do. Trump's team offered a variety of scenarios throughout the week of what to expect, only to see Trump himself sometimes diverge on key decisions and details. Commerce Secretary Howard Lutnick was particularly prominent with at least 7 television appearances in recent days. "I think markets need to be aware that no one can reliably speak for Trump given how much decision-making has been centralized in the president personally," said Tobin Marcus, the head of US policy and politics at Wolfe Research. The confusion was in evidence all week and also moved in unpredictable directions. Early in the week, as Trump was considering whether to let the tariffs kick in, Lutnick sent signals that they could be tempered before implementation. But then, after the duties came in at full force, Lutnick described Trump's approach as looking to meet Canada and Mexico half-way before then saying "no, no, no, I didn't say that' on Wednesday in a Bloomberg interview when presented with his prior comments. In the end, Trump offered a plan that few saw coming as he backtracked perhaps more than halfway with a one-month delay on tariffs on products that are traded under the rules of the U.S.-Mexico-Canada Agreement. It's a move that could see over 80 percent of goods exempted from duties for the time being. Along the way, stocks yo-yoed on the uncertainty with the NASDAQ even entering into a correction in a week that now appears poised to end with tariff levels on Mexico and Canada less changed than expected after Trump's significant reversal on both countries. "It's very hard for the market to rally sustainably under these conditions," Ahmed Riesgo, the chief investment officer at Insigneo, said in a Yahoo Finance Live appearance Thursday as the week neared an end, noting the whipsaw from the White House had left markets 'exhausted.' "A lot of investors are simply throwing their hands up and saying, 'I'll come back in when there's more certainty,'" he added. One country not in for relief this week was China, which saw 10% blanket duties on their goods double to 20%. Matthew Holmes of the Canadian Chamber of Commerce added in a statement that 'constant threats and economic uncertainty have taken their toll. We see it in delayed business investments, shaky consumer confidence, stalled capital flows, and a volatile stock market.' For his part, Trump says he wasn't concerned with the market volatility, noting on Thursday "a lot of them are globalist companies that won't be doing as well because we're taking back things that have been taken from us many years ago." He also called the market turbulence this week "a short term interruption." The week began with Lutnick saying on Fox News on Sunday that President Trump would impose tariffs, but that there could be some wiggle room — calling it 'fluid situation' and suggesting the 25% rate might be negotiable. He then sent a similar message on CNN Monday and downplayed the chances of any economic disruptions. But Trump then took a different tack on Tuesday, going ahead without changing the 25% rates and offered in an address to Congress "there'll be a little disturbance, but we're OK with that." Lutnick then followed up with another market-friendly message in a Fox Business appearance Tuesday suggesting relief could be in the offing but promising 'It's not going to be a pause, none of that pause stuff.' Yet a pause is precisely what President Trump then announced Wednesday with a one month exemption on auto tariffs. Then offered the further pauses on Thursday for both Canada and Mexico. Other Trump aides didn't offer much more in the way of clarity. Treasury Secretary Scott Bessent appeared Thursday at the New York Economic Club and tried to downplay inflation fears from tariffs but then raised eyebrows when he acknowledged "we could get a one-time price adjustment" because of the duties. At other point in the appearance, Bessent responded positively to the notion that Trump could end up negotiating tariff rates downward overall but also said the revenue from new import duties would likely be "very substantial" and help pay for Trump and Bessent's multi-trillion dollar tax cut plans. The confusing week was reminiscent of Trump's first term, where the president's words and actions often diverged with his aides — especially those tasked with offering a calming message to markets. "The one fixed point for Donald Trump is he loves tariffs," added Jason Furman, a former Obama economic adviser now at Harvard University's John F. Kennedy School of Government, in a Yahoo Finance Live appearance. "The reasons he loves them keep changing, the countries change, the magnitude of them change — but those love of tariffs, that's the one thing that there's no whipsawing on." Ben Werschkul is Washington correspondent for Yahoo Finance. Every Friday, Yahoo Finance's Rick Newman and Ben Werschkul bring you a unique look at how U.S. policy and government affects your bottom line on Capitol Gains. Watch or listen to Capitol Gains on Apple Podcasts, Spotify, or wherever you find your favorite podcasts. Sign in to access your portfolio
