Latest news with #US-exposed
West Australian
13-05-2025
- Business
- West Australian
ASX: Share market lifts on US-China peace talks but gold stocks sink
A ceasefire in America's trade war with China has sparked an enthusiastic Tuesday morning for share markets. The ASX200 lifted 0.75 per cent in the first few minutes of trade but the ebullience was soon pared back, and the bourse was up 0.38 per cent at 8,264.7 points an hour from the close. Japan's Nikkei Index was up 1.8 per cent while the Dow gained 2.8 per cent overnight. It followed news of a peace deal between the world's two largest economies on Monday, with tariffs slashed for 90-days while trade talks continue. But economists have cautioned that tariffs remain much higher than when the year started. US-exposed Clarity Pharmaceuticals was the top performer, rising 15 per cent to $2.56 per share. Clarity won a fast-track designation from America's Food and Drug Administration in February for a prostate cancer treatment. That came despite overseas drug-makers sliding thanks to news President Donald Trump planned an executive order to slash pharmaceutical prices. Life360 — a tech app hoping to grow in North America — was up 11.9 per cent to $26.69. But WA's darling gold industry copped a hit as investors downgraded their expectations of economic and financial risk. The Aussie dollar gold price dove $180 an ounce in the past week to be below $5100/oz. The five worst performing stocks on Tuesday were all gold plays. Capricorn Metals, Ramelius Resources, Genesis Minerals, Spartan Resources and Regis Resources all posted falls of almost 10 per cent or more. Commonwealth Bank economists declared they believe 'peak tariff' is past — with the US to cut trade taxes on Chinese goods by 115 percentage points. 'The 90 day deal gives the US and Chinese governments time to rethink their positions,' head of international and sustainable economics Joseph Capurso said in a note. 'Their earlier positions were going to have a material negative impact on their economies.' He said the deal reduced economic risk but tariffs could still lead to stagflation — when both unemployment and inflation remain elevated. 'We consider there is little chance the US and Chinese governments will agree to a comprehensive trade agreement in the next 90 days,' Mr Caruso said. 'The shortlived first trade agreement in President Trump' first term took around one year to negotiate. 'At the end of the 90 days, we expect tariffs on imports from China and the US will still be material, probably not much lower than currently.' ANZ reckoned the US Federal Reserve would resume interest rate cuts in the September quarter. But the big four bank still put the chances of an American recession at 30 per cent. The ceasefire deal is the latest major backdown by Mr Trump's administration, after sweeping and largely baseless tariffs announced on so-called 'Liberation Day' in April. The huge tax hike — among the largest in US history — sparked panic in financial markets and sent the cost of US government debt soaring.
Yahoo
30-04-2025
- Business
- Yahoo
BHSI updates executive lines suite for private companies in Canada
Berkshire Hathaway Specialty Insurance (BHSI) has updated its Private Company Executive Lines products suite in Canada. The updated offering introduces enhanced directors and officers liability, fiduciary liability and employment practices liability coverage. These additions complement the company's existing crime and side a difference in conditions insurance, which is already available across all provinces and territories in Canada. The updated offering provides private companies with customisable coverage and limits of up to $25m (C$34.58m). BHSI has confirmed that there are no specific industry restrictions, and the suite caters to US-exposed risks while imposing no minimum premium requirements. BHSI Canada country manager and head of executive & professional lines Andrew Knight said: 'We are excited to round out our Executive Lines offerings and further strengthen our partnerships with private companies throughout Canada. 'Our new Private Company Executive Lines suite leverages our BHSI strengths – including our long-view stability-focused underwriting, CLAIMS IS OUR PRODUCT philosophy and the security of our financial strength.' Alongside the product update, BHSI has appointed Shaun Lue as the new Private Company Leader. Lue became part of BHSI in 2021 as a senior underwriter in executive lines and was promoted to the role of assistant vice-president in 2023. Based in in Toronto, he has more than ten years of experience in the executive lines sector. BHSI recently promoted Louise Kidd to the newly created role of head of underwriting in Europe. She will also continue in her existing position as global financial lines underwriting officer. "BHSI updates executive lines suite for private companies in Canada " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
24-04-2025
- Business
- Yahoo
The Dollar's Slide Is Raising Red Flags for Corporate Earnings
(Bloomberg) -- Rising tariffs and the weakening dollar are casting a shadow on companies' profit guidance this earnings season, with more damage seen unfolding over the coming quarters. Trump Gives New York 'One Last Chance' to End Congestion Fee Why Car YouTuber Matt Farah Is Fighting for Walkable Cities Backyard Micro-Flats Aim to Ease South Africa's Housing Crisis The Racial Wealth Gap Is Not Just About Money To Fuel Affordable Housing, This Innovation Fund Targets Predevelopment Costs Companies across Europe are already sounding the alarm following the dollar's slide to three-year lows versus the euro and to a 10-year trough against the Swiss franc. That's another headache for stock markets grappling with the risk of an economic slowdown due to President Donald Trump's policies on trade. Given that Stoxx 600 index members get 60% of their sales from overseas, such a large dollar slide is unwelcome, as it would sharply reduce the worth of US earnings once converted back into local European currencies. As a result, US-exposed stocks in the region are falling with the dollar and many investors are turning to domestically-geared firms as an alternative. Among those flagging the exchange-rate headache is SAP SE, the continent's most valuable firm. Describing the greenback's weakness as a medium-term earnings headwind, the software maker's chief financial officer told investors the hit should become evident next year as currency hedges start to expire. At Dutch beermaker Heineken NV, meanwhile, the euro's strength against a range of currencies is expected to curtail this year's revenue by €1.72 billion ($2 billion). French medical-diagnostics company BioMerieux and British retailer WH Smith Plc also highlighted exchange-rate risks during their earnings reports. 'European companies will have to wake up to the idea that their price competitiveness can no longer rely on a stronger US dollar,' said Florian Ielpo, head of macro research at Lombard Odier Investment Managers. While the current earnings season won't capture the effect of tariffs unveiled on April 2, 'the third quarter will be the eye of the storm,' Ielpo predicted. Meanwhile, forecasters expect the trade war to hurt the greenback further and potentially stoke a recession in the US. That's knocked the S&P 500 8.6% lower so far in 2025, and largely trimmed this year's advance in European equities. Each 5% rally in the euro and other local currencies against the dollar shaves 1.5 to two percentage points off earnings growth in the MSCI Europe gauge, Morgan Stanley strategists estimate, describing the currency moves as 'a broad-based drag.' US Impact The exchange-rate shifts haven't really hit home in the US yet: The dollar was stronger against the euro in the first quarter than the same period a year ago. But it's since weakened precipitously, threatening to curb sales as the year goes on. Some forecasters and traders expect the greenback will weaken to $1.20 per euro from about $1.14 now. For American companies that sell abroad, dollar weakness can be a boon — shares in companies that make most of their sales outside the US, such as Coca Cola Co. and Philip Morris International Inc., have bucked this month's stock-market rout. Yet, only a third of revenue for S&P 500 constituents comes from overseas. For the remaining, domestic-focused companies, such as retailers, a falling greenback is usually bad news, because it raises prices for imports and erodes consumers' purchasing power, UBS Group AG strategists note. Bloomberg Intelligence analysts George Ferguson and Melissa Balzano single out the US airline sector, noting yields could fall on the lucrative transatlantic travel segment, 'as the euro-dollar exchange rate slips out of favor for US passengers.' 'Weaker demand may manifest as early as the third quarter, as some fliers scale back vacation plans based on dollar costs, while the debate about trade has Europeans looking for destinations other than the US,' they added. Estimate Cuts As economic gloom deepens, strategists are cutting their earnings estimates for the year. As for the S&P 500, earnings-per-share growth is seen as 7.3%, down from 11.4% at the start of the year, data compiled by Bloomberg Intelligence shows. Meanwhile Europe's Stoxx 600 earnings growth estimates have been cut to minus 2% from 3% in January, according to Barclays Plc strategists. Meanwhile, currency-driven earnings downgrades are coming thick and fast in export-led European sectors. Vontobel, for instance, cut its estimates for Richemont, Swatch Group AG and Lindt & Spruengli AG because of the dollar's depreciation against the Swiss franc. Bank of America Corp. lowered its predictions for German cosmetics maker Beiersdorf AG by 2%, while Barclays slashed profit-growth forecasts for Unilever Plc, Nestle SA and Lindt. 'Focus on domestically driven businesses,' Jacob Falkencrone, global head of investment strategy at Saxo Bank A/S, told clients in a note. 'European exporters are fighting a strong euro, eroding profits just as they're squeezed by tariffs.' In the US, firms comprising over 60% of the S&P 500 report this week and next, including Microsoft Corp. and Eli Lilly & Co. Some multinationals will, no doubt, welcome dollar weakness, counting on it to cushion exports. Accenture Plc, Alphabet Inc. and Microsoft were among firms named by BNP Paribas Exane as having more than 50% exposure to non-dollar revenues. Still, many investors remain skeptical, warning that Trump's trade war could dampen global demand for goods and services. 'US exporters should benefit on the weakness of the dollar but may well suffer from tariffs and anti-US sentiment,' said James Athey, a fund manager at Marlborough Investment Management Ltd. 'I think it is hard to make many cases for improved earnings outlooks anywhere.' --With assistance from Phil Serafino and James Cone. As More Women Lift Weights, Gyms Might Never Be the Same Why US Men Think College Isn't Worth It Anymore Eight Charts Show Men Are Falling Behind, From Classrooms to Careers India's 110% Car Tariffs Become Harder to Defend in Trump Era The Guy Who Connected Donald Trump to the Manosphere ©2025 Bloomberg L.P. Sign in to access your portfolio
