Latest news with #MarkDowding
Bloomberg
6 days ago
- Business
- Bloomberg
Trump to Double Steel, Aluminum Tariffs to 50%
"Bloomberg Markets" follows the market moves across every global asset class and discusses the biggest issues for Wall Street. Today's guests; RBC Global Asset Management Bluebay Chief Investment Officer Mark Dowding, BWH Hotels President CEO Larry Cuculic, and Bloomberg's Joe Deaux. (Source: Bloomberg)
Yahoo
13-05-2025
- Business
- Yahoo
Wall Street's Unstoppable Comeback: Why Tech Stocks Are Surging Despite Trade War Chaos
Wall Street is roaring back as the S&P 500 (SPY) jumps 3.12% and the Nasdaq (NASDAQ:QQQ) is up 3.9% at 2.08pm, driven by a surge in megacap tech stocks like Tesla (NASDAQ:TSLA). Investors appear to be shaking off the shock from Donald Trump's Liberation Day announcement, focusing instead on signs of a possible cooling in US-China trade tensions. Mark Dowding, chief investment officer at BlueBay Fixed Income, suggests the market is adjusting to a less severe economic fallout than initially feared. With the Federal Reserve now expected to cut rates twice in 2025, traders are recalibrating their strategies, but the risk of another trade flare-up looms. Still, not everyone is buying into the optimism. Roberto Scholtes, head of strategy at Singular Bank, cautions that even if a trade deal is reached, the damage from months of economic uncertainty could still sting. Companies like Ford Motor Co., United Parcel Service Inc., and Mattel Inc. have already pulled guidance, blaming tariff volatility. Meanwhile, some investors are using the trade truce to offload Chinese exports, potentially exacerbating trade imbalances. Treasury Secretary Scott Bessent hinted that the 90-day cooling-off period could be extended, but with no clear resolution in sight, the clock is ticking. For traders who missed the rally, the window to buy the dip may be closing fast. There is no more dip to buy, says David Kruk, head of trading at La Financiere de L'Echiquier. The S&P 500 has now clawed back almost half of its February losses, while the Bloomberg Dollar Index is still 2.7% below its April high. As traders brace for another potential showdown between Washington and Beijing, the market's next move could hinge on whether the Fed sticks to its expected rate cuts or if another round of trade turbulence throws everyone off course. This article first appeared on GuruFocus. 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
Yahoo
13-05-2025
- Business
- Yahoo
Wall Street's Unstoppable Comeback: Why Tech Stocks Are Surging Despite Trade War Chaos
Wall Street is roaring back as the S&P 500 (SPY) jumps 3.12% and the Nasdaq (NASDAQ:QQQ) is up 3.9% at 2.08pm, driven by a surge in megacap tech stocks like Tesla (NASDAQ:TSLA). Investors appear to be shaking off the shock from Donald Trump's Liberation Day announcement, focusing instead on signs of a possible cooling in US-China trade tensions. Mark Dowding, chief investment officer at BlueBay Fixed Income, suggests the market is adjusting to a less severe economic fallout than initially feared. With the Federal Reserve now expected to cut rates twice in 2025, traders are recalibrating their strategies, but the risk of another trade flare-up looms. Still, not everyone is buying into the optimism. Roberto Scholtes, head of strategy at Singular Bank, cautions that even if a trade deal is reached, the damage from months of economic uncertainty could still sting. Companies like Ford Motor Co., United Parcel Service Inc., and Mattel Inc. have already pulled guidance, blaming tariff volatility. Meanwhile, some investors are using the trade truce to offload Chinese exports, potentially exacerbating trade imbalances. Treasury Secretary Scott Bessent hinted that the 90-day cooling-off period could be extended, but with no clear resolution in sight, the clock is ticking. For traders who missed the rally, the window to buy the dip may be closing fast. There is no more dip to buy, says David Kruk, head of trading at La Financiere de L'Echiquier. The S&P 500 has now clawed back almost half of its February losses, while the Bloomberg Dollar Index is still 2.7% below its April high. As traders brace for another potential showdown between Washington and Beijing, the market's next move could hinge on whether the Fed sticks to its expected rate cuts or if another round of trade turbulence throws everyone off course. This article first appeared on GuruFocus. 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
Yahoo
12-04-2025
- Business
- Yahoo
US stocks end up. S&P 500 and Nasdaq post best week since November despite tariff swings.
U.S. stocks bounced back in early afternoon, helped by some dip-buying after a brief decline earlier on a weaker-than-expected consumer sentiment reading in the University of Michigan's preliminary April survey. The mid-month reading on sentiment fell to 50.8 from 57.0 in March and below the Dow Jones consensus estimate for 54.6. Inflation is becoming a major concern, according to the report, with expectation for inflation a year from now jumping to 6.7%, the highest level since November 1981 and up from 5% in March. Expectations for economic conditions also dropped 10.3% to 47.2, the lowest since May 1980. The drop in consumer sentiment has been alarming to some economists who say when consumers feel nervous and gloomy about the economy, they tend to close their wallets. Consumers make up about 70% of the economy, so a slowdown in consumer spending will take a toll on economic growth. That pressured stocks around mid-morning, but buyers emerged to buy the dip and pushed all three major indexes back in the green. Despite stocks' violent swings, all three major stock indexes are on pace for gains this week. The S&P 500 and Nasdaq are on pace for their best weekly performance since November. "It's been a challenging week, but also a moment to seek opportunities and not succumb to fear," said Mark Dowding, BlueBay chief investment officer at RBC Global Asset Management. Indeed, individual investors have been buying the dips throughout the downturn. On April 9, the day Trump announced a 90-day tariff pause, investing platform Wealthfront said it saw most money flowing into accounts in the early morning hours before the tariff pause was announced. Additionally, on April 8 when markets tanked, Wealthfront saw a significant increase in deposits into bond ladders, making it the highest single day for bond ladder deposits this year and signaling that some investors are taking advantage of rising Treasury yields. Bond ladders are created by buying bonds at varying maturities. Investors use them to provide a more predictable income stream and potentially reduce interest rate risk if rates move. If rates rise, investors won't be locked into a single bond with a lower rate. The blue-chip Dow rose 1.56%, or 618.99 points to 40,212.65; the S&P 500 added 1.81%, or 95.31 points, to 5,363.36; and the tech-heavy Nasdaq rose 2.06%, or 337.14 points, to 16,724.46. The benchmark 10-year yield rose to 4.478%. Gold, seen as a safe asset during tumultuous times, rallied past $3,200 per ounce to set another record high early in the day. It was last up 2.23%. Overnight, China increased its tariff on U.S imports to 125% but signaled it wouldn't match anymore increases by the U.S. 'Even if the U.S. continues to impose higher tariffs, it would be economically meaningless and would become a joke in the history of the world economy," China's finance ministry said. Despite those comments, the White House said Trump is "optimistic" China will seek a deal with the U.S. Meanwhile, the European Union said its trade representative would fly to Washington on Sunday to 'try and sign deals," a sign a full-out global trade war may be averted. That sentiment helped stocks shortly after the open reverse a small part of Thursday's freefall, but money managers warn investors should remain cautious. Stocks swooned Thursday on fears President Donald Trump's triple-digit tariff on China would significantly damage the U.S. economy and corporate profits. Trump kept his 10% tariff on all countries but put reciprocal tariffs on hold for 90 days for all countries except China. Because China retaliated, Trump raised his tariff on Chinese goods to a total 145%. "While it was positive that most tariffs were lowered to 10%, the 145% tariff on China will still impair corporate profits," said Mike O'Rourke, chief market strategist at JonesTrading. "The $440 billion of goods the U.S. imported from China last year was second only to Mexico," he said. "Those low production-cost goods, whether they are technology, apparel, or materials, are important to corporate earnings. The auto and metals tariffs remain in place, and pharma and semiconductor tariffs are on deck. Exemptions may be coming, but they are not here yet." Wholesale prices in March unexpectedly fell 0.4%, posting the first decline since October 2023. The drop compares with February's 0.1% gain and economists' forecasts for a 0.2% rise. Excluding the volatile food and energy sectors, so-called core wholesale fell 0.1% against the estimate for a 0.3% increase. Wholesale prices are what businesses pay for their goods and services and sometimes seen as the first line for inflation to show up. This comes on the heesl of annual consumer inflation on Thursday showing a 2.4% rise in March, below economists' forecasts and February's 2.8%. It was the lowest annual increase since September. Still, some economists pointed out the inflation data are old, and "if tariffs stay in place, they will push inflation considerably higher in coming months," said Bill Adams, chief economist at Comerica Bank. Comforting words, though, came from New York Federal Reserve President John Williams. Williams said the U.S. economy is not entering a period of high inflation and low growth, and the U.S. Federal Reserve will act to keep so-called "stagflation" at bay. JP Morgan, Wells Fargo, Morgan Stanley and BlackRock kicked off earnings season. They provided the first glimpse into how businesses and consumers may be handling tariff volatility and how they see tariffs unfolding this year. Wells Fargo, JP Morgan, Blackrock and Morgan Stanley all beat quarterly earnings and revenue estimates. Chief executives of those banks warned of uncertainty ahead due to tariffs. Wells Fargo CEO Charlie Scharf said his bank is "prepared for a slower economic environment in 2025, but the actual outcome will be dependent on the results and timing of the policy changes.' JP Morgan and Wells Fargo said they haven't seen a surge in companies tapping their credit lines. During times of stress and anxiety, companies grab cash from these credit lines to shore up financials, just in case. JP Morgan CEO Jamie Dimon said consumers also contninued to spend, though he said some may have been buying ahead of tariffs. Shares of JP Morgan closed up 4%; Wells Fargo fell almost 1 % after it lowered its full-year net interest income expectations; BlackRock rose 2.33%; and Morgan Stanley added 1.43%. Novartis said Thursday it will spend $23 billion over the next five years to expand in the U.S. The drugmaker expects this will create about 1,000 new jobs at Novartis, and lead to around 4,000 other jobs in the U.S. outside of Novartis. The company will be able to make domestically all of its medicines for the U.S., it added. Shares gained almost 4%. Frontier Group cut its outlook for the first three months of the year and pulled its full-year outlook, citing weaker-than-expected demand and economic uncertainty. Shares of the discount airline tumbled 5.6%. Stellantis said its global shipments fell to 1.2 million vehicles in the first three months of the year. That's down 9% from a year ago. The drop was primarily due to lower North American production, extended holiday downtime in January, product transitions and lower van sales in Europe, it said in a press release. Shares of the carmaker shed about 0.5%. Bitcoin rose back above the key $80,000 level, last up 5.23% at $83,756.51. Investors may watch to see if insiders sell any Trump digital tokens on April 17. Forty million of the tokens, recently worth more than $300 million, will be unlocked that day, meaning the owners of those tokens will be able to sell them for the first time since the Trump coin launched in January, according to the Trump cryptocurrency's website. A company controlled by the Donald J. Trump Revocable Trust is among the owners that will be able to sell, according to Trump's 2024 public financial disclosure required for federal candidates. The story was updated with new information. Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday. This article originally appeared on USA TODAY: Stock market ends higher on the day and week despite wild tariff ride Sign in to access your portfolio
Reuters
31-03-2025
- Business
- Reuters
Make Europe Great Again trades are gaining traction
LONDON, March 31 (Reuters) - A more independent, less U.S.-reliant Europe is taking shape and investors sense opportunities in a long-shunned region that go beyond just snapping up defence shares. Yes, there is reason for caution since massive German spending on defence and infrastructure will take time to be felt. Yet many are playing the long game. The Reuters Tariff Watch newsletter is your daily guide to the latest global trade and tariff news. Sign up here. "It seems that MEGA (Make Europe Great Again) trades are now rapidly replacing MAGA trades, which have lost their appeal," said Mark Dowding, CIO at RBC's BlueBay fixed income team, referring to U.S. President Donald Trump's Make America Great Again movement. 1/ DEFENCE FIRST Brussels' plan to mobilise up to 800 billion euros ($866 billion) for rearmament and German fiscal expansion mean defence stocks remain fertile ground for investors, even after their surge since Russia invaded Ukraine in 2022. European aerospace and defence stocks (.SXPARO), opens new tab have gained 33% this year, and valuation multiples have topped those of U.S. peers, reaching levels associated with luxury or tech. Tankmaker Rheinmetall ( opens new tab was briefly more expensive than Ferrari ( opens new tab this month, trading at 44 times its expected earnings, highlighting investor willingness to pay a premium for exposure to this long-term trend. Defence companies' expected average yearly profit growth to 2028 range from 8% for BAE (BAES.L), opens new tab to 32% for Rheinmetall, Citi estimates. The European Union wants to buy more European arms, but it's a challenge. Since 2022, 78% of EU procurement has gone outside the bloc, with 63% to the U.S., European Commission data show. And after a broad rally, some advise caution. Vontobel fund manager Markus Hansen believes investors should focus on areas with real and pressing demand such as rebuilding depleted ammunition stockpiles and infantry-related equipment. Defence supply chain firms and other sectors including communications meanwhile could benefit. Eutelsat ( opens new tab has surged 260% this month, driven by suggestions the Franco-British satellite operator could replace Elon Musk's Starlink in providing internet access to Ukraine. "Apart from weaponry, defence is also about logistics, data and communication, and personnel. It's a comprehensive value chain where suppliers play an important role," Evli portfolio manager Tomas Hildebrandt said. Truckmaker Scania, a unit of Traton ( opens new tab, Atlas Copco ( opens new tab, which makes machinery for infrastructure and industrial projects, and construction companies in general, are possible examples, he said. 2/ HEY BOND Whether it's joint EU bonds or more German debt, a wider pool of triple-A rated bonds that supports the euro's reserve currency status is coming. Germany's historic infrastructure and defence spending could add up to more than a trillion euros of additional debt. What's more, the EU plans to jointly borrow up to 150 billion euros backing loans to member states to help increase defence spending, a move even proponents didn't anticipate just months ago. The bonds backing the programme, dubbed SAFE, will boost the EU's roughly 650-billion-euro debt pile. It's a sign the bloc might become a more permanent borrower as investors have long hoped, stepping up to another challenge after its vast COVID-19 recovery fund. The loans, however, are just a small share of the total 800-billion-euro plan, leaving the rest to national governments. 3/ BANKING ON IT European banks (.SX7P), opens new tab are popular as the fiscal boost brightens the economic outlook, and have surged 26% year-to-date in their best quarter since 2020. Germany's economy should expand roughly 1.4% in 2026 and 2027 after almost four years of stagnation, Berenberg estimates. A March BofA fund manager survey showed banks and insurance are the largest sector overweights in Europe, followed by industrials. "We're positive on banks as higher growth expectations should steepen the (bond) yield curve, which would benefit banks and really spur credit growth," said GlobalX senior investment analyst Trevor Yates, noting the firm has seen strong interest in its DAX German stocks ETF. Investors also expect European regulators will ease rules for banks given a U.S. deregulation drive. BlueBay's Dowding said European bank capital bonds were the firm's largest overweight position in multi-asset credit funds. 4/ PERIPHERAL WINS Spanish and Italian equities (.IBEX), opens new tab, (.FTMIB), opens new tab are significantly cheaper than those in core Europe, says Societe Generale multi-asset strategist Manish Kabra, leaving them poised for gains. Southern European stocks are also proportionally less exposed to U.S. tariffs than Germany or France and have a large exposure to banks. "There are parallel things going on. One is the German debt brake and for that (mid-cap) MDAX and long euro is your trade, the other is banking regulation, and European nominal GDP growth, both of which impact banks," Kabra said. "That is exactly what the periphery of Europe provides." 5/ RENEWABLE Europe's push to become more energy independent, starting in 2022, is expected to continue, with renewable energy and home-based power firms benefiting, analysts said. The European Commission has put forward an Action Plan to speed up permits for renewable energy projects, change how energy tariffs are set, and increase state aid for clean industries and more flexible power generation. And 100 billion euros of Germany's planned spending increase will be channelled into climate and economic transformation. Solar generation provided 11% of the EU electricity mix in 2024, versus 9.3% in 2023, overtaking coal, think tank Ember says. European utility firms Iberdola ( opens new tab, Endesa ( opens new tab and Enel ( opens new tab have rallied 7-16% so far this year.
