Latest news with #USChinaRelations
South China Morning Post
5 hours ago
- Business
- South China Morning Post
China's ‘unstoppable' Latin America outreach gains ground as US uncertainty bites
China's high-profile outreach to Latin America underscores Beijing's expanding strategic emphasis on the region, according to Chinese observers, one of whom said solid China-Latin America ties would be 'unstoppable' if the United States continued its current approach toward its southern neighbours. Their comments followed the fourth ministerial meeting of the China- Community of Latin American and Caribbean States (Celac) Forum, held in Beijing on May 13. With key Celac leaders floating megaproject proposals during the event, another Chinese observer noted that infrastructure was likely to remain a key sector of engagement for Beijing, playing a crucial role in countering US influence in the region. While it was a routine event under the established China-Celac mechanism, the forum happened to coincide with the Trump administration's global tariff war and a growing US-China power struggle in Latin America, marked in particular by recent tensions over the Panama Canal 02:21 China's Xi Jinping urges countries to 'stand united' in face of global trade war China's Xi Jinping urges countries to 'stand united' in face of global trade war In his keynote address, President Xi Jinping pitched China as 'a good friend and partner' of Latin American and Caribbean nations, while offering a US$9.2 billion credit line to support development. He said Beijing was ready to work with the 33-member regional bloc to boost development and promote a multipolar world in the face of 'bullying' and 'unilateralism', a thinly veiled swipe at the White House.
The National
11 hours ago
- Business
- The National
Markets feel heat as Trump claims China broke trade deal
Stock markets ended the week mixed, reversing rallies on Friday after US President Donald Trump accused China of 'totally violating' their trade deal, reigniting tensions that had simmered down after a detente three weeks ago. Mr Trump, in a post on his Truth Social platform, said US levies made it 'impossible' for China to trade with the US, and that the 'fast deal' was struck to prevent a 'very bad situation' for Beijing. US Trade Representative Jamieson Greer said China was 'slow-rolling' its compliance with the agreement, particularly on minerals and rare earth magnets. The US and China, the world's two biggest economies, have been the main protagonists in the trade war, with Washington imposing 145 per cent tariffs on Chinese imports. Beijing responded in kind, posting 125 per cent levies on American imports. However, on May 12, the White House announced that both sides struck a surprise deal to suspend their tariffs for 90 days, with the US and China lowering their levies to 30 per cent and 10 per cent, respectively. Mr Trump's latest tirade jeopardises their progress. China hit back at the US, with its embassy in Washington saying it had been in constant contact, particularly concerned about trade controls in semiconductors and 'other related practices'. 'China once again urges the US to immediately correct its erroneous actions, cease discriminatory restrictions against China and jointly uphold the consensus reached at the high-level talks in Geneva,' embassy representative Liu Pengyu said in a statement. After stock markets closed on Friday, Mr Trump poured more fuel on the trade tensions fire by threatening to double steel and aluminium imports to 50 per cent, which he claims is another part of his strategy to protect American industry. Shortly after making that announcement at a US Steel factory in Pennsylvania, Mr Trump wrote on Truth Social that the higher levy will come into force on June 4. That capped a whirlwind week for his grand tariff plans. On Thursday, the New York-based Court of International Trade blocked his tariffs, saying he exceeded his authority. But on Friday, a federal appeals court temporarily upheld his actions. Josh Gilbert, market analyst at eToro, said that while the appeals court has allowed tariffs to stay for now, the legal battle is far from over. 'The White House is taking its case to the Supreme Court and weighing other legal options, which, to be frank, are unlikely to be quick or straightforward. This uncertainty adds yet another layer of risk for investors. 'What we're seeing is just another example of today's current market conditions and how news flow, especially from a political standpoint, is injecting volatility into markets. 'Whether you've been investing for 10 weeks or 10 years, this is a tricky market to navigate. This constant policy whiplash is beginning to leave investors sore … diversification and a clear strategy remain the best tools for navigating this policy-driven turbulence.' At the close on Wall Street on Friday, the Dow Jones Industrial Average ended 0.1 per higher, while the tech-heavy Nasdaq Composite shed 0.3 per cent. The S&P 500 was almost flat. For the week, the S&P 500 added 1.9 per cent, the Dow gained 1.6 per cent and the Nasdaq climbed 2 per cent. Year-to-date, the S&P 500 is up 0.5 per cent, while the Dow and Nasdaq are down 0.6 per cent and 1 per cent, respectively. In London, the FTSE 100 ended more than 0.6 per cent higher, as trade remained stable despite uncertainty triggered by the latest in the tariffs saga. Paris' CAC 40 retreated 0.4 per cent, while, Frankfurt's DAX added 0.3 per cent. Earlier in Asia, stock markets reversed gains to end lower. Tokyo's Nikkei 225 and Hong Kong's Hang Seng index were both down 1.2 per cent, while the Shanghai Composite retreated 0.5 per cent. In commodities, oil prices slipped and posted a second consecutive weekly decline as the Opec+ alliance prepares for its meeting on Saturday, where it is expected to announce its third major output increase. Brent fell 0.39 per cent to settle at $63.90 a barrel, while West Texas Intermediate dropped 0.25 per cent to close at $60.79 a barrel. Gold, meanwhile, inched down at the close on Friday, as the market absorbed the tariff drama and the dollar moved higher. The precious metal, a hedge against inflation, was down nearly 1 per cent to $3,289.57 an ounce.
Globe and Mail
18 hours ago
- Business
- Globe and Mail
S&P Futures Slip After Trump Hits Out at China, U.S. PCE Inflation Data in Focus
June S&P 500 E-Mini futures (ESM25) are trending down -0.43% this morning after U.S. President Donald Trump accused China of breaching the trade agreement between the two nations. President Trump accused China of violating an agreement with the U.S. to reduce tariffs, escalating tensions between the world's two largest economies. 'China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!' Trump wrote on his social media platform. Investors also grapple with fresh uncertainty surrounding President Trump's tariff policies. A U.S. federal appeals court on Thursday allowed President Trump's tariffs to remain in place while the administration's appeal proceeds. The Trump administration could still win the appeal, but may also pursue alternative measures to implement or maintain tariffs. The Wall Street Journal reported on Thursday that the administration is weighing a temporary measure to impose tariffs on large parts of the global economy using an existing law that permits duties of up to 15% for a duration of 150 days. In yesterday's trading session, Wall Street's major indexes ended in the green. Nvidia (NVDA) rose over +3% after the world's most valuable chipmaker posted better-than-expected Q1 results and gave a solid Q2 revenue forecast. Also, Nordson (NDSN) climbed more than +6% and was the top percentage gainer on the S&P 500 after the industrial technology manufacturer reported upbeat FQ2 results and issued above-consensus FQ3 guidance. In addition, e.l.f. Beauty (ELF) soared over +23% after the cosmetics company reported stronger-than-expected FQ4 results and announced the acquisition of Hailey Bieber's Rhode beauty brand for $1 billion. On the bearish side, HP Inc. (HPQ) slumped more than -8% and was the top percentage loser on the S&P 500 after the personal computer company posted weaker-than-expected FQ2 adjusted EPS and cut its full-year adjusted EPS guidance. The U.S. Bureau of Economic Analysis' second estimate showed on Thursday that the economy contracted at a 0.2% annualized pace in the first quarter, compared with an initially reported 0.3% decline. Also, U.S. April pending home sales fell -6.3% m/m, weaker than expectations of -0.9% m/m and the largest decline in more than 2-1/2 years. In addition, the number of Americans filing for initial jobless claims in the past week rose +14K to 240K, compared with the 229K expected. 'Historic and more current data brought no surprises. Even if that had been the case, the focus would have remained firmly on the here and now — tariffs, courts, China, Nvidia, yields, and equity markets,' said Neil Birrell at Premier Miton Investors. Meanwhile, Fed Chair Jerome Powell met with President Trump at the White House on Thursday. Trump pushed the Fed chief to cut interest rates during their first in-person meeting since the president's inauguration, the White House said. The Fed said policy 'depends entirely on incoming economic information and what that means for the outlook.' Chicago Fed President Austan Goolsbee said on Thursday that a resolution in trade policy could steer the U.S. economy back to its pre-tariff path, paving the way for officials to cut interest rates. 'If you have stable full employment and inflation going to target, rates can come down to where they would eventually settle,' Goolsbee said. Also, San Francisco Fed President Mary Daly said that monetary policy is currently in a 'good place' to keep driving inflation lower. In addition, Dallas Fed President Lorie Logan indicated it could be some time before policymakers understand how the economy will respond to tariffs and other policy shifts and, in turn, how interest rates should be adjusted. U.S. rate futures have priced in a 97.9% chance of no rate change and a 2.1% chance of a 25 basis point rate cut at June's monetary policy meeting. Today, all eyes are focused on the U.S. core personal consumption expenditures price index, the Fed's preferred price gauge, which is set to be released in a couple of hours. Economists, on average, forecast that the core PCE price index will stand at +0.1% m/m and +2.5% y/y in April, compared to the previous figures of unchanged m/m and +2.6% y/y. U.S. Personal Spending and Personal Income data will also be closely monitored today. Economists anticipate April Personal Spending to be +0.2% m/m and Personal Income to be +0.3% m/m, compared to the March figures of +0.7% m/m and +0.5% m/m, respectively. The University of Michigan's U.S. Consumer Sentiment Index will be reported today. Economists expect the final May figure to be revised higher to 51.1 from the preliminary reading of 50.8. U.S. Wholesale Inventories data will come in today. Economists forecast the preliminary April figure at +0.4% m/m, the same as in March. The U.S. Chicago PMI will be released today as well. Economists expect this figure to come in at 45.1 in May, compared to the previous value of 44.6. In addition, market participants will hear perspectives from Atlanta Fed President Raphael Bostic and Chicago Fed President Austan Goolsbee throughout the day. In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.434%, up +0.23%. The Euro Stoxx 50 Index is up +0.41% this morning as investors digest positive inflation data and keep a close watch on the outlook for global trade. Real estate and chemical stocks led the gains on Friday, while mining and telecom stocks underperformed. Still, gains were limited amid uncertainty over U.S. tariffs. A U.S. federal appeals court granted President Donald Trump a temporary reprieve from a ruling that threatened to overturn the bulk of his sweeping tariffs. The benchmark index is on track for a healthy monthly and weekly gain. Preliminary data from the National Statistics Institute released on Friday showed that Spain's inflation eased more than expected in May, reinforcing expectations that the European Central Bank will deliver an eighth rate cut at its meeting next week. Separately, data from the Federal Statistical Office showed that Germany's monthly retail sales unexpectedly fell in April. In addition, ECB data showed that bank lending in the Eurozone continued to recover in April. Investors now await preliminary inflation data from Germany due later in the session. Meanwhile, ECB Governing Council member Fabio Panetta said on Friday that while the central bank has less room for additional rate cuts, it should continue to adopt a pragmatic, flexible stance and assess future decisions on a case-by-case basis. In other news, European funds saw inflows of around $1 billion in the week ending May 28th, according to a note from Bank of America that cited EPFR Global data. In corporate news, M&G Plc ( climbed over +6% after reaching a deal with Dai-ichi Life Holdings, under which the Japanese insurer will acquire a 15% stake in the U.K. money manager. Germany's Retail Sales, Spain's CPI (preliminary), Italy's GDP, and Italy's CPI (preliminary) data were released today. The German April Retail Sales came in at -1.1% m/m and +2.3% y/y, compared to expectations of +0.2% m/m and +1.8% y/y. The Spanish May CPI arrived at unchanged m/m and +1.9% y/y, weaker than expectations of +0.1% m/m and +2.1% y/y. The Italian GDP has been reported at +0.3% q/q and +0.7% y/y in the first quarter, compared to expectations of +0.3% q/q and +0.6% y/y. The Italian May CPI stood at unchanged m/m and +1.7% y/y, compared to expectations of +0.1% m/m and +1.7% y/y. Asian stock markets today settled in the red. China's Shanghai Composite Index (SHCOMP) closed down -0.47%, and Japan's Nikkei 225 Stock Index (NIK) closed down -1.22%. China's Shanghai Composite Index closed lower today as renewed concerns over U.S. tariffs weighed on sentiment. A U.S. appeals court on Thursday temporarily reinstated President Donald Trump's sweeping tariffs, reversing an earlier federal court decision that had ruled them illegal. U.S. Treasury Secretary Scott Bessent also said Thursday that trade negotiations with China are 'a bit stalled' and that securing a deal will likely require direct involvement from President Donald Trump and Chinese President Xi Jinping. Shares of Apple's suppliers slumped on Friday after a U.S. court reinstated the tariffs. Also, major electric vehicle makers extended losses amid ongoing price war concerns. At the same time, bank stocks outperformed following news that People's Bank of China Governor Pan Gongsheng will attend the Lujiazui Forum's opening ceremony in Shanghai next month and unveil several major financial policies. Meanwhile, the benchmark index ended the week little changed. In other news, the Financial Times reported that China's largest technology firms have started transitioning to domestically produced chips as they grapple with a shrinking inventory of Nvidia processors and increasingly stringent U.S. export restrictions. In corporate news, Longzhou Group slid over -5% after naming Luo Zhijie as its new chief financial officer. Investors now await China's manufacturing activity data for May, set for release on Saturday, for fresh insights into the health of the economy. Japan's Nikkei 225 Stock Index closed lower today amid continued uncertainty over U.S. tariffs. Sentiment was dampened after a U.S. appeals court decision to temporarily reinstate President Donald Trump's global tariffs. Chip-related and technology stocks led the declines on Friday. Still, the benchmark index ended the week higher. Government data released on Friday showed that core inflation in Japan's capital rose to its highest level in more than two years in May due to persistent increases in food costs, indicating continued nationwide price pressures. Separate data showed that industrial production dropped in April, while retail sales grew at their quickest rate since January. The latest batch of data presented a mixed picture of accelerating inflation and weak industrial output, putting the Bank of Japan in a tough spot as it weighs future rate hikes. Meanwhile, BOJ Governor Kazuo Ueda said on Friday that the central bank is aware that companies are still raising wages and increasing prices to offset higher costs. In other news, Japan's top tariff negotiator Ryosei Akazawa said that he plans to meet U.S. Treasury Secretary Bessent and others for the next round of trade talks on Friday in Washington, though it remains uncertain how close the two sides are to finalizing a deal. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed up +1.50% to 23.74. The Japanese May Tokyo Core CPI came in at +3.6% y/y, stronger than expectations of +3.5% y/y. The Japanese April Industrial Production (preliminary) stood at -0.9% m/m, stronger than expectations of -1.4% m/m. The Japanese April Retail Sales arrived at +3.3% y/y, stronger than expectations of +2.9% y/y. The Japanese April Unemployment Rate was 2.5%, in line with expectations. Pre-Market U.S. Stock Movers Ulta Beauty (ULTA) climbed more than +7% in pre-market trading after the beauty retailer reported upbeat Q1 results and raised its full-year guidance. Zscaler (ZS) gained over +3% in pre-market trading after the cybersecurity company reported stronger-than-expected FQ3 results and issued solid FY25 guidance. Dell Technologies (DELL) rose over +1% in pre-market trading after the IT giant posted better-than-expected Q1 revenue and raised its full-year profit outlook. Marvell Technology (MRVL) slid more than -4% in pre-market trading after the specialty semiconductor company's Q1 results and Q2 guidance failed to impress investors. Gap Inc. (GAP) plunged over -15% in pre-market trading after the apparel retailer warned investors that tariffs could reduce full-year profit by over $100 million. Today's U.S. Earnings Spotlight: Friday - May 30th Up Fintech (TIGR), Shoe Carnival (SCVL), Cresco Labs (CRLBF), Canopy Growth (CGC), Yatra Online (YTRA).
Associated Press
a day ago
- Business
- Associated Press
Trump says China 'violated' agreement on trade talks and he'll stop being 'nice'
WASHINGTON (AP) — President Donald Trump said Friday that he will no longer be 'Mr. NICE GUY' with China on trade, declaring in a social media post that the country had broken an agreement with the United States. Hours later, Trump said in the Oval Office that he will speak with Chinese President Xi Jinping and 'hopefully we'll work that out,' while still insisting China had violated the agreement. What deal Trump was referring to was not clear. But the rhetoric was a sharp break from recent optimism when he lowered his 145% tariffs on Chinese goods to 30% for 90 days to allow for talks. China also reduced its taxes on U.S. goods from 125% to 10%. 'The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,' Trump posted. 'So much for being Mr. NICE GUY!' Trump said the tariff reduction had 'quickly stabilized' the Chinese economy, though the decrease also brought a degree of relief to U.S. companies that said the previous rates had essentially blocked their ability to bring in Chinese goods and imperiled their businesses. The comments reflect the tensions between the world's two largest economies, as Trump is eager to show that his tariffs can deliver meaningful results in the form of U.S. factory jobs and increased domestic investment. The Trump administration also stepped up the clash with China in other ways this week, announcing that it would start revoking visas for Chinese students studying in the U.S. Trump's negotiating style has often toggled between extreme threats and grand claims of progress. His mercurial approach has taken the financial markets on a wild ride of sell-offs and rallies that have produced a general sense of uncertainty. That has been compounded by a court ruling this week that Trump had overstepped his legal authority with broad 'Liberation Day' tariffs in April as well as import taxes on China, Canada and Mexico tied to fentanyl smuggling earlier this year. A federal appeals court on Thursday allowed Trump to temporarily keep collecting the tariffs under an emergency powers law while he appeals the earlier decision. The Chinese Embassy in Washington said Friday that the two sides 'have maintained communication over their respective concerns in the economic and trade fields' since officials met in Geneva nearly three weeks ago. But the embassy also said the Chinese government had 'repeatedly raised concerns with the U.S. regarding its abuse of export control measures in the computer chip sector and other related practices.' Both countries are in a race to develop advanced technologies such as artificial intelligence, with Washington seeking to curb China's access to the most advanced computer chips. 'China once again urges the U.S. to immediately correct its erroneous actions, cease discriminatory restrictions against China and jointly uphold the consensus reached at the high-level talks in Geneva,' the embassy said. Sun Yun, director of the China program at the Washington-based think tank Stimson Center, said, 'I think the Chinese are playing hard to get with the trade talks.' Lin Jian, spokesman for the Chinese foreign ministry, on Friday accused the U.S. of overstretching the concept of national security by politicizing trade issues. He called the acts by the U.S. 'malicious attempts to block and suppress China.' 'We firmly oppose that and will resolutely defend our legitimate rights and interests,' Lin said. U.S. Treasury Secretary Scott Bessent said in a Thursday interview on Fox News' 'Special Report' that talks with China had stalled. Given the complexity and magnitude of the negotiations, 'this is going to require both leaders to weigh in with each other,' Bessent said. 'They have a very good relationship. And I am confident that the Chinese will come to the table when President Trump makes his preferences known.' U.S. Trade Representative Jamieson Greer said Friday on CNBC that China has not removed non-tariff barriers as agreed. 'We haven't seen the flow of some of those critical minerals as they were supposed to be doing,' Greer said. China in December announced export bans to the U.S. of critical minerals including gallium, germanium and antimony. It announced more export controls on rare earth minerals in April, in response to Trump's tariffs.
CNN
a day ago
- Business
- CNN
Jamie Dimon says China isn't America's biggest threat. It's ‘the enemy within'
JPMorgan Chase CEO Jamie Dimon sounded a warning Friday on the fractious US relationship with China — and on 'the enemy within.' 'China is a potential adversary — they're doing a lot of things well, they have a lot of problems,' Dimon said at the Reagan National Economic Forum. 'But what I really worry about is us. Can we get our own act together — our own values, our own capability, our own management.' Dimon's comments come as President Donald Trump's tarrifs have sharply cut into trade between the United States and China, the world's two biggest economies. Trump's trade policy has whipsawed through different tariff levels and has also been caught up in court decisions, adding more uncertainty to what has become a testy relationship affecting economies around the world. Dimon said he agreed with Berkshire Hathaway CEO Warren Buffet that America is 'normalcy resilient' but that this time is different. 'We have to get our act together,' Dimon said. 'We have to do it very quickly.' He added that the United States has a 'mismanagement' issue. He called on fixing permitting, regulations, immigration, taxation, inner city school and the health care system. If those things are fixed, Dimon said, the country could grow 3% a year. 'What you heard today on stage was the amount of mismanagement is extraordinary. By state, by city, for pensions … and that stuff is going to kill us,' Dimon said, referencing comments made by earlier panelists at the forum. The United States government deficit stood at about $2 trillion in 2024, or roughly 7% of gross domestic product, according to a June 2024 report by the Congressional Budget Office. If the country enters a recession, 'that 7% will be 10%,' he added. This is a developing story and will be updated
