Latest news with #Natixis
South China Morning Post
12-06-2025
- Business
- South China Morning Post
Hong Kong re-exporters urged to remain cautious despite US-China trade talks
The latest US-China trade talks may have alleviated concerns among some Hong Kong re-exporters, but the sector should remain cautious because President Donald Trump's administration has been accused of creating crises to gain bargaining power, according to observers on Thursday. Advertisement High-level officials from the United States and mainland China concluded their two-day economic and trade consultation mechanism meeting in London on Wednesday. Trump announced that a trade agreement had been reached with the mainland, stipulating that tariffs on Chinese imports to the US would increase from the current 30 per cent to 55 per cent, while tariffs on US exports the other way would remain at 10 per cent, pending approval from himself and Chinese President Xi Jinping. According to Trump, the US would also gain access to the mainland's magnets and all necessary rare earth elements, while certain provisions would be offered in exchange, including allowing mainland students to study at American universities. Gary Ng Cheuk-yan, a senior economist at Natixis Corporate and Investment Bank, suggested the deal could offer a slight benefit to Hong Kong, although it was too early to say the dust had settled between the two countries. Advertisement 'For Hong Kong, such a deal may help stabilise its US-China re-exports with less concern about electronic equipment supply chains, which is the largest trade item. Given the less intense environment, the front-loading demand may be lower than in the scenario of a full-fledged trade war,' he cautioned. 'There is no guarantee that what we see right now will remain, and more restrictions can return at any time, especially as the US includes China clauses in its deals with other countries, which may also affect Hong Kong.'
Bloomberg
09-06-2025
- Business
- Bloomberg
Bloomberg Daybreak Asia: US, China to Resume Trade Negotiations
Asian stocks opened higher Monday with the US and China set to resume trade negotiations. Adding to the optimism in the stock market was the surprise in labor data. While US job growth moderated in May and prior months were revised lower, Friday's report narrowly exceeded forecasts. We get reaction from Chris Brigati, Chief Investment Officer at SWBC. Plus - trade tensions appeared to recede between President Donald Trump and China's Xi Jinping as an impasse on critical minerals was broken, paving the way for further trade talks. We get a preview of how the talks may impact the trading week ahead with Alicia Garcia Herrero, Chief Asia-Pacific Economist at Natixis. She speaks with Bloomberg's Shery Ahn and Haidi Stroud-Watts.
Reuters
06-06-2025
- Business
- Reuters
China's yuan slips to 2-year low versus peers after Trump-Xi call leaves issues unresolved
SHANGHAI, June 6 (Reuters) - China's yuan slipped against the dollar while falling to a near two-year low versus its major trading partners on Friday, as U.S. President Donald Trump and Chinese leader Xi Jinping held a much-anticipated call but left key issues that have stoked tensions between the world's two largest economies unresolved. During the more than one-hour-long call, Xi told Trump to back down from trade measures that have roiled the global economy and warned him against threatening steps on Taiwan, according to a Chinese government summary. "Although the likelihood of a U.S.-China deal increases with more high-level dialogues, investors remain skeptical that both sides are merely buying time to address some pressing issues," said Gary Ng, senior economist at Natixis. Trump said on social media that the talks focused primarily on trade led to "a very positive conclusion," announcing further lower-level U.S.-China discussions and that "there should no longer be any questions respecting the complexity of Rare Earth products." "The call does not offer much comfort in cutting tariffs, but only touching on access of critical materials and tech export control," Ng said. "Therefore, there is no certainty of what kind of deal will be made, and it may only be a partial one given the wide range of issues between the U.S. and China." As of 0830 GMT, the onshore yuan ended its domestic trading session at 7.1847 per dollar, down 0.08% from the previous night. Its offshore counterpart traded at 7.1852 around 0830 GMT. "The talk itself should lift market sentiment, but Trump's erratic policies make it hard to convince investors," said a trader at a foreign bank. Wang Zhuo, partner at Zhuozhu Investment in Shanghai, said "Trump's fickleness has made such talks less and less meaningful to the market", but added that direct communications were helpful for removing some misunderstandings. Trade talks between Washington and Beijing had stalled after a meeting in Geneva last month, where both sides agreed to temporarily roll back most of the tariffs imposed on each other's goods since April. Trump has accused China of violating the bilateral deal. Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate at 7.1845 per dollar, its strongest since May 26 and 90 pips firmer than a Reuters' estimate of 7.1935. The spot yuan is allowed to trade 2% either side of the fixed midpoint each day. Based on Friday's official guidance fix, the CFETS yuan index (.CFSCNYI), opens new tab, a gauge that measures the yuan's weighted value versus 25 currencies of trading partners, fell to 95.58 and is down 5.8% year-to-date, according to Reuters calculations based on official data. The spot yuan has, however, strengthened 1.6% versus the dollar during the same period. While Beijing has said it does not deliberately seek a weaker currency, the currency's passive decline versus its peers comes at a time of heightened Sino-U.S. tensions for an economy struggling with deflationary pressures and weak domestic demand. Investors will shift their attention to a string of Chinese economic data releases next week, including inflation and trade data on Monday, as investors are keen to gauge the health of the broader economy under Trump's tariffs.
Yahoo
06-06-2025
- Business
- Yahoo
China's yuan slips to 2-year low versus peers after Trump-Xi call leaves issues unresolved
SHANGHAI (Reuters) - China's yuan slipped against the dollar while falling to a near two-year low versus its major trading partners on Friday, as U.S. President Donald Trump and Chinese leader Xi Jinping held a much-anticipated call but left key issues that have stoked tensions between the world's two largest economies unresolved. During the more than one-hour-long call, Xi told Trump to back down from trade measures that have roiled the global economy and warned him against threatening steps on Taiwan, according to a Chinese government summary. "Although the likelihood of a U.S.-China deal increases with more high-level dialogues, investors remain skeptical that both sides are merely buying time to address some pressing issues," said Gary Ng, senior economist at Natixis. Trump said on social media that the talks focused primarily on trade led to "a very positive conclusion," announcing further lower-level U.S.-China discussions and that "there should no longer be any questions respecting the complexity of Rare Earth products." "The call does not offer much comfort in cutting tariffs, but only touching on access of critical materials and tech export control," Ng said. "Therefore, there is no certainty of what kind of deal will be made, and it may only be a partial one given the wide range of issues between the U.S. and China." As of 0830 GMT, the onshore yuan ended its domestic trading session at 7.1847 per dollar, down 0.08% from the previous night. Its offshore counterpart traded at 7.1852 around 0830 GMT. "The talk itself should lift market sentiment, but Trump's erratic policies make it hard to convince investors," said a trader at a foreign bank. Wang Zhuo, partner at Zhuozhu Investment in Shanghai, said "Trump's fickleness has made such talks less and less meaningful to the market", but added that direct communications were helpful for removing some misunderstandings. Trade talks between Washington and Beijing had stalled after a meeting in Geneva last month, where both sides agreed to temporarily roll back most of the tariffs imposed on each other's goods since April. Trump has accused China of violating the bilateral deal. Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate at 7.1845 per dollar, its strongest since May 26 and 90 pips firmer than a Reuters' estimate of 7.1935. The spot yuan is allowed to trade 2% either side of the fixed midpoint each day. Based on Friday's official guidance fix, the CFETS yuan index, a gauge that measures the yuan's weighted value versus 25 currencies of trading partners, fell to 95.58 and is down 5.8% year-to-date, according to Reuters calculations based on official data. The spot yuan has, however, strengthened 1.6% versus the dollar during the same period. While Beijing has said it does not deliberately seek a weaker currency, the currency's passive decline versus its peers comes at a time of heightened Sino-U.S. tensions for an economy struggling with deflationary pressures and weak domestic demand. Investors will shift their attention to a string of Chinese economic data releases next week, including inflation and trade data on Monday, as investors are keen to gauge the health of the broader economy under Trump's tariffs.
Reuters
06-06-2025
- Business
- Reuters
Investor caution lingers as Trump-Xi call offers no trade breakthrough
SINGAPORE, June 6 (Reuters) - Chinese markets had a muted response on Friday to the rare leader-to-leader call between U.S. President Donald Trump and Chinese leader Xi Jinping that left key issues to further talks, keeping investors cautious about simmering trade tensions. China's blue-chip CSI300 Index (.CSI300), opens new tab was down 0.1%, while the Shanghai Composite Index (.SSEC), opens new tab was flat. Hong Kong benchmark Hang Seng Index (.HSI), opens new tab dipped 0.4%. Here are some comments from analysts and investors: GUO JIANWEN, PARTNER, HEDGE FUND HAIYI CAPITAL, SHANGHAI: "If you look at the conversation between Chinese and U.S. presidents, there's nothing concrete that's positive. So little impact on stocks. There's only some trading opportunities in the market." WILLIAM XIN, CHAIRMAN, SPRING MOUNTAIN PU JIANG INVESTMENT MANAGEMENT, SHANGHAI: "The only good news is that things are not getting worse. If Trump can come to China for a visit in the short term, that would be hugely positive." GARY NG, SENIOR ECONOMIST, NATIXIS, HONG KONG (VIA EMAIL): "Although the likelihood of a U.S.-China deal increases with more high-level dialogues, investors remain skeptical that both sides are merely buying time to address some pressing issues. "The call does not offer much comfort in cutting tariffs but only touching on access of critical materials and tech export control. Therefore, there is no certainty of what kind of deal to make, and it may only be a partial one given the wide range of issues between the U.S. and China." CHARLES WANG, CHAIRMAN, SHENZHEN DRAGON PACIFIC CAPITAL MANAGEMENT CO, SHENZEN: "The news is positive to the market, but investors should not over-interpret it. Both sides are still struggling to adapt to each other in a broad confrontational trend." Wang added that the most profound implication from the talks was Chinese President Xi Jinping's warning to his U.S. counterpart, Donald Trump, against taking provocative steps on Taiwan - a signal, in his view, that China is not prepared to conquer the island by force anytime soon. "This shows that China is not ready to take back Taiwan in the near term using force. Otherwise, China doesn't need to warn the U.S. against such a scenario." WANG ZHUO, PARTNER, ZHUOZHU INVESTMENT, SHANGHAI: Wang said direct communication between China and the U.S. is certainly conducive to removing some misunderstandings, especially following recent finger-pointings. "However, Trump fickleness has made such talks less and less meaningful to the market." GAO LE, INVESTMENT ADVISOR, GALAXY SECURITIES, BEIJING: "It means China's market sentiment will continue to heal. "Recent yuan appreciation also signifies expectations of China's economic resilience." He said the fact that U.S. shares fell after the news while U.S.-listed China stocks rose shows investors are more optimistic toward China's economy amid the trade war. CHARU CHANANA, CHIEF INVESTMENT STRATEGIST, SAXO, SINGAPORE (VIA EMAIL): "Markets are relieved the Trump-Xi call didn't escalate tensions further but that's not quite a reason to cheer either. While it appears that the tensions of rare-earths minerals and student visas may have been dialled down, investors see the strategic rivalry, particularly around AI and tech dominance, as far from over. "New issues can flare up anytime, and a comprehensive deal remains unlikely. As long as things do not get worse, markets are content to move on, for now, that means shifting focus squarely to the jobs report due later in the day."
