Latest news with #tradeTalks
Forbes
2 days ago
- Business
- Forbes
China Market Update: Tariff Turnaround, Week In Review
CLN Yesterday's enthusiasm was short-lived as the US Court of Appeals for the Federal Circuit stated that tariffs can remain in place while the US Court of International Trade's decision that tariffs weren't imposed legally is appealed. President Trump announced on social media that other means for implementing tariffs would be examined, which shouldn't have surprised anybody. Not helping risk asset sentiment was Treasury Secretary Bessent's interview on Fox News that US-China trade talks were 'stalled' and likely needed a conversation between President Trump and President Xi. President Trump's June 14th birthday and President Xi's June 15th birthday could provide such an opportunity. Asian stocks were weak as the US dollar strengthened, Taiwan was closed for the Dragon Boat Festival, and Indonesia continued to be closed for Ascension Day. However, for the month, Asian markets posted small gains. Today is the official start of summer for international traders as today's MSCI Semi Annual Index rebalance occurs. For domestic traders, June 20th, triple witching day (the expiration of index and stock options and futures), is the official start, in my opinion. The power of passive was on full display as 92.9 million shares of Alibaba traded at the close in Hong Kong versus the total day's volume of 202 million shares, yesterday's volume of 74 million shares, and the 1-year average volume of 88 million shares. Despite its weight increasing in MSCI indexes, Alibaba's Hong Kong shares fell by -3.56% overnight, as Hong Kong-listed growth stocks, especially Apple's supplier ecosystem, took the tariff news on the chin. It was a fairly ugly day in Hong Kong with few bright spots. Nonetheless, Li Auto gained +3.79% after yesterday's Q1 financial results, CSPC Pharma gained +6.3%, Fosun Pharma gained +9.89%, and real estate developers were mostly higher. BYD fell -3.25%, despite a fantastic rebuttal from their PR General Manager Li Yunfei after Great Wall's CEO accused BYD of being an auto industry Evergrande. He compared the company's financials, including revenue, debt-to-asset ratio, and liabilities, to those of global companies, highlighting the company's strong financial position. Bravo! Mainland investors bought today's dip with a healthy $1.2 billion worth of net buying via Southbound Stock Connect. Interestingly, Meituan, which fell -1.5%, has seen healthy buying via Southbound Stock Connect over the last two weeks. Mainland China had fewer banks, as technology and growth names were weak, especially in electronic equipment, semiconductors, biotechnology, and software. Volumes in the ETFs favored by China's 'National Team', i.e. investment firms associated with sovereign wealth, were below average, though two ETFs have seen strong inflows in the last week. The 2025 Lujiazui Forum, taking place on June 18th and June 19th, will include speakers from the People's Bank of China (PBOC), the Banking and Insurance Regulatory Commission (CBIRC), the China Securities Regulatory Commission (CSRC), the State Administration of Foreign Exchange (SAFE), and the Shanghai Municipal Government. Let's hope they announce further economic and policy support! May purchasing managers' indexes (PMIs) will be released this weekend. A mainland media source noted that, within President Trump's budget bill, which the House passed, are provisions to 'significantly increase the foreign investment tax rate for 'discriminatory' countries, up to 20 percentage points based on the statutory tax rate', which threatens to 'escalate the trade ware into a capital war'. Article 899 would allow the Treasury Secretary to label foreign country taxes on digital services as discriminatory, allowing for an additional 5% tax increase per year to a maximum of 20% on income earned by foreign individuals and companies from US investments, including interest and dividends. The concern is the effect on foreign investors' appetite for US Treasury bonds and, to a lesser degree, US stocks. Bloomberg wrote about it yesterday, stating that the countries in focus include Canada, the UK, France, and Australia. The belief is that foreign investors from targeted countries will exit their US Treasury positions, which would also weigh on the US dollar. I don't see anything mentioning capital gains, as interest and dividends are the focus. Regardless, this sounds like a terrible idea! I am off to Asia for work this weekend! I look forward to providing more insights from on the ground next week. Live Webinar Join us Friday, May 30, at 11 am EDT for: Innovation In Hedged Equity - With Hedgeye's CEO Keith McCullough Please click here to register New Content Read our latest article: New Drivers For China Healthcare: AI Med-Tech Innovation, Cancer Treatment, & Favorable Balance of Trade Please click here to read Chart1 Chart2 Chart3 Chart4 Chart5 Chart6
News.com.au
2 days ago
- Business
- News.com.au
U.S. Tariffs Are Still in Place. Here's What You Need to Know
WSJ's Deputy Finance Editor Quentin Webb explains how trade talks have been impacted by legal challenges to President Trump's tariffs.
Bloomberg
2 days ago
- Business
- Bloomberg
Bloomberg Daybreak: President Trump's Tariff Agenda
On today's podcast: 1) A federal appeals court temporarily blocks a ruling that threatens to throw out the bulk of President Trump's tariff agenda. Traders are reassessing their appetite for riskier assets amid concerns over weaker growth and fiscal strain, with the setup being "quite pessimistic" according to an investment officer. 2) President Trump pushes Fed Chair Jay Powell to lower rates at a meeting at the White House. The president told Powell that not lowering rates is putting the US at an economic disadvantage to China and other countries, and Powell stressed that the path of policy will depend on incoming economic information. 3) Treasury Secretary Scott Bessent says trade talks with China have stalled. Bessent believes more talks will happen with Chinese officials "in the next few weeks" and sees the personal involvement of both country leaders as essential.
Wall Street Journal
2 days ago
- Business
- Wall Street Journal
China Trade Talks Are 'a Bit Stalled,' Says Scott Bessent
Treasury Secretary Scott Bessent in Washington on Thursday. He said the legal tumult around tariffs isn't affecting trade talks. ()
Irish Times
2 days ago
- Business
- Irish Times
US-China trade talks ‘stalled', says Scott Bessent
Trade talks between the US and China are 'a bit stalled' and may need to be reinvigorated with a call between US President Donald Trump and Chinese leader Xi Jinping , US treasury secretary Scott Bessent has said. The comments suggest that the two sides have made little progress since they agreed two weeks ago during talks in Geneva to a truce that would reduce tit-for-tat tariffs that had soared to as high as 145 per cent. 'I believe we will be having more talks in the next few weeks and I believe we might at some point have a call between the president and party chair Xi,' Mr Bessent said. 'Given the magnitude of the talks ... this is going to require both leaders to weigh in with each other,' he 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.' READ MORE China's ministry of foreign affairs on Friday declined to comment on Mr Bessent's remarks. Mr Trump has on various occasions raised the possibility of a phone call with Xi. He insisted before the talks on May 12th that they had spoken but China has consistently denied this. [ In the game of chicken between the US and China, round one goes to Beijing Opens in new window ] After the talks in Switzerland, the two countries said they would slash tariffs on each other's goods for at least the next 90 days, with the extra levies the US imposed on China this year falling to 30 per cent and China's declining to 10 per cent. As part of the deal, China also agreed to 'suspend or cancel' non-tariff measures against the US, but did not provide any details. Ford Chief Lisa Brankin on accelerating the switch to EVs Listen | 41:35 The Chinese ministry of commerce said after the talks that both sides had agreed to set up a 'China-US economic and trade consultation mechanism, to maintain close communication on respective concerns in the economic and trade fields and to carry out further consultations'. It said the two sides would hold consultations regularly or as needed, 'alternating between China and the United States, or in a mutually agreed third country'. But since then, there have been few public announcements on the talks from either side, with the Trump administration instead imposing further restrictions on the use of US technology by Chinese companies. Shortly after the Geneva talks, Washington warned companies around the world that using artificial intelligence chips made by Huawei could trigger criminal penalties for violating US export controls. The US commerce department has also told US companies that offer software used to design semiconductors to stop selling their services to Chinese groups, in the latest attempt to make it harder for China to develop advanced chips. 'From the perspective of the long-term and complex nature of the struggle with the US, we should not only be fully prepared for negotiations but also be ready for a prolonged confrontation,' wrote Huo Jianguo, a vice-chair of the China Society for World Trade Organization Studies on Beijing, in Communist Party affiliated media China Economic Net. – Copyright The Financial Times Limited 2025
