Latest news with #investors
Bloomberg
an hour ago
- Business
- Bloomberg
Indian Stocks to Catch up With Asian Peers in Second Half of 2025
Before the trading day starts we bring you a digest of the key news and events that are likely to move markets. Today we look at: Good morning, this is Alex Gabriel Simon, an equities reporter in Mumbai. Nifty futures point to a positive opening, following Asian markets higher as a favorable ruling from the US trade court that deemed President Donald Trump's global tariffs illegal lifted investor sentiment. Traders' focus will be on IndusInd Bank following the ban on its former CEO for insider trading and Bajaj Auto's earnings.
Japan Times
an hour ago
- Business
- Japan Times
'It's called negotiation': Trump bristles at ‘TACO trade' betting on him backing down
U.S. President Donald Trump bristled at suggestions that Wall Street believes he's ultimately unwilling to follow through on extreme tariff threats, saying his repeated retreats are instead part of a strategy to exert trade concessions. "It's called negotiation,' Trump said on Wednesday, adding that he intentionally would "set a number at a ridiculous high number' and then "go down a little bit' as part of talks. Trump was asked during an Oval Office event to respond to reports of what is being called "TACO' trade, in which investors seize on market tumbles after the president makes tariff threats, predicting he will ultimately relent and equities will rebound. The acronym — which stands for Trump Always Chickens Out — was coined by a Financial Times columnist and has since been adopted by traders attempting to navigate the dozens of changes to tariff policy Trump has announced over the early months of his presidency. In the most recent case, stocks tumbled Friday after Trump threatened to impose a 50% tariff on European goods beginning June 1, only to rally after he agreed to delay the levies more than a month to allow for negotiations. Trump's tariff policy has been marked by frequent retreats and recalibrations. Consider: As Trump's 145% levies on Chinese imports drove fears of soaring costs for consumer goods and threatened a recession, the U.S. president agreed to roll back duties on most of those goods to 30%. The detente announced May 12 — which was matched by a pullback from Beijing — followed talks between the world's two largest economies and is designed to allow at least 90 days for additional negotiations. Trump ignited market turmoil and a pullback from U.S. treasuries in April when he hit dozens of U.S. trading partners with levies as high as 50%. The White House denied a report of a possible reprieve, and the president took to social media, urging investors to "BE COOL!' while calling it "A GREAT TIME TO BUY!!' Hours later, Trump announced he was pausing his higher tariffs, resetting them to 10% for 90 days in a bid for talks. In response, stocks staged their best rally since 2008. Trump's March announcement he was slapping a 25% tariff on imported automobiles and auto parts ignited furious lobbying by carmakers, who said the levies would cripple the industry and undermine investments made under Trump's renegotiated North American trade deal. A month later, Trump yielded to that pressure, effectively easing separate metals duties for the auto industry while offering a temporary offset for American-made vehicles. Consumers had fretted about higher expected prices for consumer electronics under Trump's April tariffs, when the administration, in a surprise move, exempted smartphones, computers and other technology. Administration officials said those tariff exclusions were designed to allow time for the Commerce Department to conduct a separate trade probe targeting semiconductors. All of those moves followed Trump's earlier retreats on sweeping Canada and Mexico tariffs, as well as shifting plans to collect levies on low-cost packages. Still, the stock market has increasingly been shrugging off Trump's tariff threats, shrinking the money-making potential of the TACO trade. A recent analysis from Dennis DeBusschere of 22V Research found that the S&P 500 Index's sensitivity to tariffs has fallen dramatically since April. A little more than a third of the S&P 500's daily move now can be explained by tariff-related headlines — in line with a long-term median for any factor that can tip the market, the data show. That's down from 80% in early April. The benchmark index is up since every key tariff-related announcement that initially set the markets on edge. The S&P 500 has gained 1% since the March 4 tariffs on Canada, Mexico and China, and it is higher by 4% since the April 2 announcement of levies on trading partners. "The thesis behind the TACO trade is: Buy the Trump tariff dip,' Tom Essaye of the Sevens Report wrote in a note to clients on Wednesday. "Essentially, Trump has proven to investors that he won't actually follow through with draconian tariffs. As such, any sell-off following a dramatic tariff threat should be bought.' The president argues his approach — threaten big levies and use the leverage to exact concessions — has yielded quick success. For instance, after Trump vowed a 50% tariff on goods from Colombia unless the country accepted deportees, Colombian President Gustavo Petro ultimately backed down, accepting those deportation flights. Yet analysts have warned the tactic offers diminishing returns every time Trump scales back a previous threat, since counterparties are less likely to view them as credible from the start. On Wednesday in the Oval Office, a reporter's question about the TACO trade elicited a fiery response from Trump, who said he was more often criticized for being too harsh in his executive actions. He labeled the query "nasty.' "They wouldn't be over here today negotiating if I didn't put a 50% tariff on,' Trump said. "The sad thing is, now, when I make a deal with them — it's something much more reasonable — they'll say, 'Oh, he was chicken. He was chicken.' That's unbelievable.'
Malay Mail
2 hours ago
- Business
- Malay Mail
US court approves RM950m forfeiture in alleged stock scam involving five Malaysians; landmark recovery for FBI
KUALA LUMPUR, May 29 — A US court has approved the forfeiture of approximately US$214 million (RM950 million) linked to an alleged 'pump-and-dump' fraud scheme involving seven individuals, including five Malaysians. According to a statement by the US Attorney's Office yesterday, the funds — seized during an investigation led by the Federal Bureau of Investigation (FBI) — will be returned to confirmed victims of the scheme. 'The large forfeiture order of more than $200 million should serve as a warning that federal law enforcement will aggressively pursue fraudulent profits from those who seek to prey upon investors by manipulating the US stock market,' read the statement 'Despite the overwhelming manipulation as alleged in this case, this serves as one of the premier FBI investigations in which the federal government was able to successfully recover victims' hard-earned money before it disappeared into overseas bank accounts,' it added. The alleged fraud, which occurred between November 2024 and February 2025, involved misleading promotions and coordinated trading of shares in China Liberal Education Holdings, causing prices to spike before the defendants allegedly sold off their shares for profit. US authorities said many investors, misled by false claims shared via social media and messaging apps, suffered significant losses when the stock's value later collapsed. The motion to forfeit the funds was granted on Tuesday, by US district judge Jorge L Alonso. The seven accused — five Malaysians, namely Lim Xiang Jie, Ko Sen Chai, King Sung Wong, Siong Wee Vun and Kok Wah Wong, and two Taiwanese nationals — remain at large, with arrest warrants issued. To note, 'pump and dump' scheme involves fraudsters spreading false or misleading information — often online — to inflate a stock's price so they can sell their shares at a profit. Once the price crashes, unsuspecting investors who bought in at the peak are left with significant losses.
Reuters
3 hours ago
- Business
- Reuters
Instant View: Markets cheer court ruling to block Trump tariffs
SINGAPORE, May 29 (Reuters) - U.S. stock futures jumped and the dollar gained against safe-haven peers including the yen and Swiss franc on Thursday, after a U.S. federal court blocked President Donald Trump's "Liberation Day" tariffs from going into effect. The Trump administration has appealed the ruling. S&P 500 E-mini futures climbed 1.5% and the U.S. currency jumped 0.7% to 145.83 yen and 0.8% to 0.8339 Swiss franc . Here are some quotes from market analysts: "It seems inevitable the Supreme Court will be ordered to weigh in on this one, which makes today's news more of a speedbump than a full-drawn conclusion. But for now, investors get a breather from the economic uncertainty they love to loathe." "It's certainly a blow to the Trump administration. However, it's likely that the administration will proceed with appeals and other procedures in federal court. So, this block doesn't mean that policies regarding tariffs will completely stop. "On the other hand, this is a domestic matter for the U.S., and I think that tariff negotiations will continue. "In the financial markets, there's an initial reaction of a stronger dollar and weaker yen. However, considering judicial processes like appeals, I don't expect a continuous rise in the dollar." "The kneejerk response of markets to the CIT ruling is intriguing - rather than taking it as simple risk-on news that should benefit the likes of AUD and NZD, the U.S. dollar is the main beneficiary. "It appears as though while there must be significant caution over the ruling being overturned by higher courts, for now the weight of money is being placed on the possibility that U.S. courts prevent the White House from self-imposed economic damage, brightening U.S. growth prospects and the USD." "We're just trying to work out what it might mean, but obviously the market is doing a kneejerk reaction so I guess it's reversing a lot of the moves that we've seen… you know all the direction of change has been opposite to what we have seen since Liberation Day, but it's not at all clear what this means. "The assumption is that the tariffs that have been announced and are in place will stay in place… Our assumption is President Trump will appeal this trade court's decision and he has the right to appeal... And then it will be up to the federal court and what happens there? I have no idea. So this may be an absolute storm in a teacup or potentially something more significant. "I think it's way premature basically to say that this has the potential to reverse a lot of the moves that we've seen in the last couple of months."
Entrepreneur
3 hours ago
- Business
- Entrepreneur
CATL's Record-Breaking IPO Set to Fuel Global Growth
Contemporary Amperex Technology Co. Limited (CATL), the world's largest electric vehicle battery manufacturer, has completed a massive initial public offering that analysts say will significantly accelerate the company's international expansion... This story originally appeared on Calendar Contemporary Amperex Technology Co. Limited (CATL), the world's largest electric vehicle battery manufacturer, has completed a massive initial public offering that analysts say will significantly accelerate the company's international expansion plans. The Chinese battery giant's listing has broken records in the domestic market, drawing intense interest from both institutional and retail investors. This capital influx comes at a critical time as CATL faces increasing competition in the rapidly growing electric vehicle battery sector. Record-Breaking Market Debut CATL's shares surged immediately upon listing, reflecting strong investor confidence in the company's growth trajectory and market position. The offering raised billions of dollars, making it one of the largest initial public offerings (IPOs) in China's technology sector in recent years. Market analysts point to several factors driving investor enthusiasm: CATL's dominant position as a supplier to major global automakers The company's advanced battery technology and research capabilities Strong government backing for China's electric vehicle industry 'This successful listing gives CATL the financial firepower it needs to compete globally,' said a market analyst familiar with the company. 'They now have the capital to fund new factories, research facilities, and strategic partnerships worldwide.' Global Expansion Strategy CATL has made no secret of its international ambitions. The company already supplies batteries to major automakers including Tesla, BMW, and Volkswagen. With its newly acquired capital, CATL is expected to accelerate plans for manufacturing facilities in Europe and North America. The company has already broken ground on a massive factory in Germany, its first production facility outside China. Industry experts believe that additional plants will follow as automakers worldwide increase their production of electric vehicles. 'CATL recognizes that being close to their customers is essential,' noted an industry consultant. 'Building factories in key markets reduces shipping costs, supply chain risks, and helps them adapt products to regional requirements. Technology Investment and Competition A significant portion of the IPO proceeds is likely to be allocated toward research and development. CATL faces growing competition from rivals like LG Energy Solution, Samsung SDI, and emerging battery startups. The company has been developing next-generation battery technologies, including solid-state batteries that promise increased energy density, faster charging, and enhanced safety. These advancements are crucial as electric vehicles move into the mainstream. CATL must also navigate an increasingly complex geopolitical landscape. Rising tensions between China and Western nations have led some governments to question reliance on Chinese battery suppliers for what they consider strategic industries. 'The battery industry is becoming highly politicized. CATL needs to position itself as a global company, not just a Chinese one, to maintain access to key markets,' said a policy expert who tracks the industry. Market Outlook The global electric vehicle battery market is projected to grow at a compound annual rate exceeding 25% through 2030. This growth is driven by government mandates to reduce carbon emissions, falling battery costs, and increasing consumer acceptance of electric vehicles. CATL's successful IPO positions the company to maintain its market leadership despite these challenges. The company currently controls approximately 35% of the global electric vehicle (EV) battery market, with significant market shares in China and Europe. As automakers commit to phasing out internal combustion engines, demand for high-performance batteries is expected to continue rising. CATL's expanded manufacturing capacity and research capabilities, funded by its blockbuster listing, will be critical to meeting this demand. For investors, the successful IPO represents confidence that CATL can navigate both technological changes and geopolitical challenges while maintaining its growth trajectory in a market that will be central to the future of transportation. The post CATL's Record-Breaking IPO Set to Fuel Global Growth appeared first on Calendar.
