Latest news with #ex-U.S.
Miami Herald
3 hours ago
- Business
- Miami Herald
US aluminum and steel prices surge as Trump doubles tariffs
Futures tracking aluminum and steel prices in the U.S. surged after President Donald Trump said he would double tariffs on the metals this week. Contracts linked to the prices that manufacturers pay to get aluminum delivered to the U.S. Midwest jumped 54% to the highest since 2013 on the Comex exchange in New York on Monday - offering an early glimpse of the much higher costs for American factories, with import levies set to rise to 50% from Wednesday. Aluminum used in everything from beer cans to engine blocks and window frames was priced at a premium of 58 cents a pound, or about $1,280 a ton, in the Midwest over benchmark London contracts. That suggests U.S. buyers could end up paying about 50% more than international competitors to get hold of the metal. Trump hopes the increased levies will protect margins for domestic mills and spur investment in new production capacity, and shares of U.S. steel and aluminum makers surged in after-hours trading after the announcement on Friday. But construction companies have warned that levies on steel and aluminum - which Trump had already raised from 10% to 25% - will increase the cost of critical building materials. Comex steel futures were up more than 8% before paring some of the gains on Monday - and while both contracts are relatively illiquid - the moves indicate that the commercial burden of the tariffs will weigh most heavily on the U.S. aluminum market. More than 80% of the aluminum used in the U.S. is supplied via imports, while less than 20% of the country's steel is sourced from overseas, according to Morgan Stanley. 'We expect prices to rise - the U.S. does not have enough domestic capacity of either,' analysts at Citigroup Inc. said in an emailed note. For aluminum in particular, the tariffs have 'mostly just functioned as a tax on consumers thus far.' Benchmark aluminum contracts on the London Metal Exchange traded 0.9% higher to settle at $2,466 a ton at 5:50 p.m. local time. Copper was up 1.2% in London and nearly 4% higher on Comex, as analysts said the heightened levies make it more likely that Trump will follow through with plans to place tariffs on the metal. 'The market also appears to be pricing a higher likelihood of copper tariffs, with COMEX outperforming LME,' Morgan Stanley analysts led by Amy Gower said in an emailed note, noting that U.S. buyers have been front-loading imports ahead of potential tariffs. 'For now, the COMEX premium is likely to continue pulling material to the U.S., drawing down ex-U.S. inventories and keeping ex-U.S. markets tight.' With assistance from Jack Farchy and Yvonne Yue Li. Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
CNBC
6 days ago
- Business
- CNBC
These stocks could be winners if Trump devalues the U.S. dollar, according to Jefferies
Stocks with large amounts of overseas revenue and strong pricing power could outperform if the U.S. engineers an effective dollar devaluation as part of White House trade talks, according to Jefferies. The greenback has already slipped around 7% on the year, and although there doesn't appear to be a blatant catalyst to drive it further lower — Jefferies Global head of FX Brad Bechtel predicts a major regime change ahead. Specifically, Bechtel believes that a tacit agreement worked into trade negotiations with China could drag the USD down 15%. "An agreement — particularly with China — to weaken the USD could result in its first prolonged devaluation in 20Y+," he wrote in a recent note. "This would increase the competitiveness of U.S. exports, bolster U.S. manufacturing and potentially lift the Chinese consumer by aiding domestic consumption." "In short, this is more of a win-win solution than a diligent and protracted trade deal process," Bechtel added. To that end, in the same note Jefferies analysts shared some stocks that could win big if the U.S. dollar does end up devaluing. These stocks all have the following characteristics: Revenue with significant overseas exposure, especially to China Considerable direct competition that is foreign domiciled Potential for pricing power as a commodity-driven business or service In the health care sector, Jefferies singled out life sciences stock Danaher as a winner should the greenback continue to weaken. Shares of Danaher have tumbled 18% this year, but the price target of $230 is approximately 22% above the stock closed on Monday afternoon. Jefferies currently has a buy rating on the company. The bank also singled out Repligen as a potential winner, although Jefferies sees the stock currently as a hold. "We view DHR and RGEN as particularly well positioned and note that both companies also have considerable ex-U.S. revenue exposure (~55% each)," Jefferies wrote. Meanwhile, in the consumer sector buy-rated Nike has a leg up over its peers, Jefferies said. "We think NKE is poised to benefit from improving trade balances both with China and Globally," the bank wrote. "We forecast 52% of NKE's revenues will come from International for FY'25, with 15% coming from Mainland China specifically. The value of these revenues will increase as the USD devalues." Jefferies added: "Additionally, if the Euro and the CHF continue to appreciate, this can further increase NKE's competitiveness considering its key peers — Adidas, Puma and On — are European companies." Shares of Nike have stumbled 17% in 2025. Jefferies' $115 price target is 83% above where the stock closed on Tuesday. Netflix, another name Jefferies has a buy rating on, has surged 36% this year. The stock closed at $1,211.51 could rally another TK% to Jefferies' $1,200 per share price target. "A weakened USD should support NFLX on reaching the high-end of its FY25 rev guide of $43.5-44.5B," the bank wrote. "It would also benefit its industry leading operating margins, giving it further earnings/FCF available for content investment vs. peers."
Yahoo
6 days ago
- General
- Yahoo
Former University of Michigan president gets initial approval to lead the University of Florida
GAINESVILLE, Fla. (AP) — The University of Florida's board of trustees on Tuesday approved Santa Ono to be the next leader of Florida's flagship university, though one more vote is required before it becomes official. Ono, the past president of the University of Michigan, needs approval by the governing body of the state university system before he becomes the 14th president of the University of Florida. 'The energy here at the University of Florida is palpable, and I am eager to join the wonderful students, faculty and staff of the Gator Nation," Ono said in a statement. The school's board of trustees selects the president and the appointment is subject to confirmation by the Florida Board of Governors, per state law. Ono is set to replace Kent Fuchs, who became the school's interim president last summer after ex-U.S. Sen. Ben Sasse stepped down. Sasse left the U.S. Senate, where he had represented Nebraska, to become the university's president in 2023. Sasse announced in July he was leaving the job to focus on his family after his wife was diagnosed with epilepsy. Soon thereafter, there were reports that Sasse gave six former staffers and two former Republican officials jobs with salaries that outstripped comparable positions and spent over $1.3 million on private catering for lavish dinners, football tailgates and extravagant social functions in his first year on the job. The amount was about double the spending of his predecessor, Fuchs, who was brought back to head the university on a temporary basis.
San Francisco Chronicle
6 days ago
- Politics
- San Francisco Chronicle
Former University of Michigan president gets initial approval to lead the University of Florida
GAINESVILLE, Fla. (AP) — The University of Florida's board of trustees on Tuesday approved Santa Ono to be the next leader of Florida's flagship university, though one more vote is required before it becomes official. Ono, the past president of the University of Michigan, needs approval by the governing body of the state university system before he becomes the 14th president of the University of Florida. 'The energy here at the University of Florida is palpable, and I am eager to join the wonderful students, faculty and staff of the Gator Nation," Ono said in a statement. The school's board of trustees selects the president and the appointment is subject to confirmation by the Florida Board of Governors, per state law. Ono is set to replace Kent Fuchs, who became the school's interim president last summer after ex-U.S. Sen. Ben Sasse stepped down. Sasse left the U.S. Senate, where he had represented Nebraska, to become the university's president in 2023. Sasse announced in July he was leaving the job to focus on his family after his wife was diagnosed with epilepsy. Soon thereafter, there were reports that Sasse gave six former staffers and two former Republican officials jobs with salaries that outstripped comparable positions and spent over $1.3 million on private catering for lavish dinners, football tailgates and extravagant social functions in his first year on the job. The amount was about double the spending of his predecessor, Fuchs, who was brought back to head the university on a temporary basis.
Winnipeg Free Press
6 days ago
- Politics
- Winnipeg Free Press
Former University of Michigan president gets initial approval to lead the University of Florida
GAINESVILLE, Fla. (AP) — The University of Florida's board of trustees on Tuesday approved Santa Ono to be the next leader of Florida's flagship university, though one more vote is required before it becomes official. Ono, the past president of the University of Michigan, needs approval by the governing body of the state university system before he becomes the 14th president of the University of Florida. 'The energy here at the University of Florida is palpable, and I am eager to join the wonderful students, faculty and staff of the Gator Nation,' Ono said in a statement. The school's board of trustees selects the president and the appointment is subject to confirmation by the Florida Board of Governors, per state law. Ono is set to replace Kent Fuchs, who became the school's interim president last summer after ex-U.S. Sen. Ben Sasse stepped down. Sasse left the U.S. Senate, where he had represented Nebraska, to become the university's president in 2023. Sasse announced in July he was leaving the job to focus on his family after his wife was diagnosed with epilepsy. Soon thereafter, there were reports that Sasse gave six former staffers and two former Republican officials jobs with salaries that outstripped comparable positions and spent over $1.3 million on private catering for lavish dinners, football tailgates and extravagant social functions in his first year on the job. The amount was about double the spending of his predecessor, Fuchs, who was brought back to head the university on a temporary basis.
