Articles in this Cluster
03-06-2025
China accused the Trump administration of violating a 90-day tariff truce agreed on May 12 by imposing new export controls on AI chips and chip design software and planning to revoke Chinese student visas. Beijing said it has upheld its side by easing tariffs, while Washington has “unilaterally” escalated tensions. The dispute clouds ongoing negotiations, with analysts noting unclear U.S. policy objectives. Treasury Secretary Scott Bessent expressed confidence a Trump–Xi conversation will resolve issues. Markets dipped on renewed trade war fears, and economists warned a deeper U.S.-China split could disrupt global supply chains and commodities demand.
Entities: China, United States, Trump administration, AI chips, chip design software • Tone: analytical • Sentiment: negative • Intent: inform
03-06-2025
Asia-Pacific markets were mixed as China’s Caixin manufacturing PMI fell to 48.3 in May, its fastest contraction since September 2022, driven by weaker export orders amid rising U.S. tariffs. Hong Kong’s Hang Seng rose 1.13% and China’s CSI 300 gained 0.48%, while Japan’s Topix dipped 0.16%. Australia’s ASX 200 climbed 0.48% despite a wider-than-expected Q1 current account deficit. India’s Nifty was flat and Sensex edged lower; South Korea’s markets were closed.
Trade tensions escalated: China rebuffed U.S. accusations over a temporary trade deal, the EU criticized the U.S. plan to double steel tariffs to 50% and warned of countermeasures. Commodities fell on China growth worries, with iron ore and base metals lower. Asian currencies generally weakened as the dollar rebounded.
Company moves: Ola Electric dropped up to 7% after large block deals, reportedly including Hyundai selling; most Adani Group stocks fell on reports of a U.S. probe into potential Iran sanctions violations. Spot gold fluctuated after a sharp rally on safe-haven demand. In the U.S., futures slipped after Wall Street opened June higher, with the S&P 500 and Nasdaq closing up. The U.S. Commerce Secretary said he’s very optimistic about a trade deal with India.
Entities: China Caixin Manufacturing PMI, U.S. tariffs, European Union, Hang Seng Index, CSI 300 • Tone: analytical • Sentiment: neutral • Intent: inform
03-06-2025
China’s factory activity contracted sharply in May, with the Caixin/S&P Global manufacturing PMI dropping to 48.3—the fastest decline since Sept 2022—driven by a steep fall in new export orders amid heightened U.S. tariffs. Overall demand and employment weakened, inventories rose due to slower sales and shipment delays, and sentiment deteriorated. The official manufacturing PMI also stayed in contraction at 49.5, with divergence from Caixin partly due to survey timing and sample differences. Despite recent policy easing (rate and RRR cuts) and support measures, China faces deflationary pressures, a deep property slump, and trade headwinds. Economists expect bolder steps to boost consumption, as traditional growth drivers—property and exports—wane.
Entities: China, Caixin/S&P Global manufacturing PMI, U.S. tariffs, official manufacturing PMI, deflationary pressures • Tone: analytical • Sentiment: negative • Intent: inform
03-06-2025
U.S. stocks opened June with modest gains while European markets dipped. Analysts say President Trump’s new 50% steel import tariff will lift U.S. steel prices. Elon Musk’s ventures saw positive news: Neuralink closed a $650 million round led by major VCs, and Tesla’s Norway sales jumped 213% in May, driven by the refreshed Model Y, despite weaker sales elsewhere in Europe. Investors are exploring an “Anywhere But the USA” trade amid policy uncertainty and fiscal concerns. Separately, U.S. agricultural products are losing ground in China due to tariffs, with restaurants switching to alternative imports.
Entities: Elon Musk, Neuralink, Tesla, President Trump, U.S. steel tariff • Tone: analytical • Sentiment: neutral • Intent: inform
03-06-2025
European stocks were set for a slightly higher open Tuesday, with FTSE 100, DAX, CAC 40 and Italy’s FTSE MIB all indicated up modestly. Investors are focused on euro zone flash inflation for May, expected to cool toward 2%, reinforcing expectations of a 25 bps ECB rate cut on Thursday. Market sentiment is tempered by renewed U.S. tariff risks after President Trump moved to double steel tariffs to 50% and by deteriorating U.S.-China trade rhetoric. Overnight, U.S. futures slipped after solid Monday gains, while Asia-Pacific markets mostly rose despite a sharp May contraction in China’s Caixin manufacturing PMI to 48.3, reflecting weaker export orders amid U.S. tariffs.
Entities: FTSE 100, DAX, CAC 40, FTSE MIB, European Central Bank (ECB) • Tone: analytical • Sentiment: neutral • Intent: inform
03-06-2025
U.S. stocks closed higher Tuesday as AI-driven gains led by Nvidia lifted markets and optimism grew over potential U.S.-China trade talks. The S&P 500 rose 0.58%, the Nasdaq 0.81%, and the Dow 0.51%. Nvidia jumped nearly 3%, surpassing Microsoft in market cap, while chip peers Broadcom and Micron climbed over 3% and 4%. Analysts cited possible Trump–Xi discussions as supportive but warned markets may trade sideways until July data on GDP, earnings, and tariffs. The OECD cut its 2025 U.S. growth outlook to 1.6%, citing tariff and policy uncertainty, while the EU criticized Trump’s plan to double steel tariffs. Notable moves: Dollar General surged over 15% on a strong outlook; clean energy stocks rallied with PBW up 4%; aerospace and defense ETF ITA hit an all-time high; UBS trimmed Berkshire Hathaway’s price target but kept a buy rating.
Entities: Nvidia, Microsoft, S&P 500, Nasdaq, Dow Jones • Tone: analytical • Sentiment: positive • Intent: inform
03-06-2025
U.S. stock futures slipped early Tuesday after a positive start to June, with S&P 500, Dow, and Nasdaq 100 futures down roughly 0.4%. In Monday’s session, the S&P 500 rose 0.41%, Nasdaq 0.67%, and Dow 0.08%, despite escalating U.S.-China tensions and EU criticism of a proposed U.S. steel tariff hike to 50%. Renaissance Macro’s Jeff deGraaf remained short-term bullish, citing historically strong seasonality over the next six weeks. Upcoming catalysts include earnings from Dollar General, Signet Jewelers, and Nio, plus data on April job openings, durable goods, and factory orders. Capital Economics expects U.S. small caps to keep lagging large caps amid renewed AI enthusiasm. Cybersecurity ETFs HACK and CIBR hit record closes, lifted by names like Zscaler and Rubrik. After hours, EchoStar rose on a disclosure about withholding interest payments tied to FCC uncertainty, Pegasystems gained on raised guidance, and Credo Technology surged on earnings and revenue beats.
Entities: S&P 500, Dow Jones, Nasdaq 100, U.S.-China tensions, European Union • Tone: analytical • Sentiment: neutral • Intent: inform
03-06-2025
Steve Eisman, famed for “The Big Short,” says tariffs are his sole market concern and warns investors are too complacent about complex U.S. trade negotiations with China and Europe, noting a trade war remains possible. Despite this, he remains long-only, has reduced risk, and is staying put. He downplays worries about the U.S. deficit and rising Treasury yields, arguing there’s no viable alternative to Treasurys and that a 10-year yield around 4.4%–5% is not historically high. Markets rallied despite tariff risks, with the Dow and Nasdaq rebounding.
Entities: Steve Eisman, U.S. tariffs, U.S.-China trade negotiations, Europe, U.S. Treasury yields • Tone: analytical • Sentiment: neutral • Intent: inform
03-06-2025
The OECD cut its U.S. growth forecast to 1.6% for 2025 and 1.5% for 2026, citing Trump’s tariffs, elevated policy uncertainty, slower net immigration, and a smaller federal workforce. Global growth is now seen slowing from 3.3% in 2024 to 2.9% in 2025 and 2026, with the weakness concentrated in the U.S., Canada, and Mexico. The OECD warned that higher trade barriers, tighter financial conditions, and weaker confidence are weighing on activity. It also raised its U.S. inflation outlook to 3.2% for 2025, potentially nearing 4% by year-end, even as G20 inflation is projected to ease. While U.S. productivity gains from AI could widen its edge, the OECD said realizing a broader productivity revival hinges on reducing trade barriers and policy uncertainty.
Entities: OECD, United States, Donald Trump, tariffs, U.S. inflation • Tone: analytical • Sentiment: negative • Intent: inform
03-06-2025
European firms have massively invested in and employ millions in America, especially in sectors like autos, but rising U.S. protectionism under Trump—particularly tariffs—risks undermining that relationship. As trade barriers grow, China and other Asian markets may look more attractive for EU companies seeking growth and supply-chain stability. While deep transatlantic ties won’t vanish overnight, European business is weighing a partial pivot eastward if U.S. policy remains hostile.
Entities: European firms, United States, Donald Trump, tariffs, China • Tone: analytical • Sentiment: negative • Intent: analyze
03-06-2025
The article highlights America’s heavy reliance on China for pharmaceuticals amid President Trump’s threat to impose tariffs on drug imports. Amoxicillin—a commonly prescribed antibiotic—illustrates the risk: the U.S. has only one producer, while China controls about 80% of its raw materials. China also supplies the vast majority of U.S. imports of key ingredients for ibuprofen, acetaminophen, and hydrocortisone. Experts warn that tariffs could raise prices and worsen shortages, especially for generics, which depend on low-cost global supply chains and Chinese and Indian active pharmaceutical ingredients (APIs). While the administration aims to onshore production on national security grounds, building domestic capacity would take years, and tariffs alone are unlikely to achieve this for commoditized generics. China’s dominance stems from decades of cost-driven offshoring, policy support, and industry clustering, giving it leverage that could affect U.S. drug access even without explicit threats.
Entities: China, United States, Donald Trump, amoxicillin, active pharmaceutical ingredients (APIs) • Tone: analytical • Sentiment: neutral • Intent: inform
03-06-2025
China condemned U.S. Defense Secretary Pete Hegseth’s remarks at the Shangri-La Dialogue, accusing him of a “Cold War mentality” and “vilifying” China after he warned that Beijing poses a real and possibly imminent threat, particularly toward Taiwan. Hegseth said the U.S. will bolster defenses and urged Indo-Pacific allies to contribute more. China called Taiwan an internal matter, warned the U.S. not to “play with fire,” and accused Washington of provoking tensions in the South China Sea and the region. Beijing insisted it supports dialogue and regional stability while labeling the U.S. the main source of instability. The article also notes recent temporary tariff reductions between the U.S. and China amid ongoing trade friction.
Entities: Pete Hegseth, China, United States, Taiwan, Shangri-La Dialogue • Tone: analytical • Sentiment: negative • Intent: inform
03-06-2025
The U.S.-China trade conflict has shifted from tariffs to a broader struggle over critical supply chains and technology access. After China restricted exports of rare earth minerals essential for advanced manufacturing, the U.S. suspended some licenses for aircraft, biotech, and semiconductor-related exports to China and is moving to secure domestic rare earth supplies—efforts that could take years. Both sides accuse the other of violating a recent Geneva truce to reduce tariffs and non-tariff measures, with U.S. officials alleging China is slow-rolling mineral shipments and China claiming U.S. export controls and other actions breach the deal. The standoff is disrupting industries reliant on cross-border components—such as aviation, autos, and defense—highlighting deep economic interdependence despite efforts to decouple. Washington is also considering adding major Chinese tech firms to an entity list, while expanding global export controls on advanced chips. Businesses warn of mounting uncertainty and potential production stoppages as both countries weaponize key chokepoints in the supply chain.
Entities: United States, China, rare earth minerals, semiconductors, export controls • Tone: analytical • Sentiment: negative • Intent: inform
03-06-2025
The SCMP’s US Economy, Trade & Business page highlights escalating trade tensions and policy shifts under President Trump. Key themes include renewed US-China trade frictions with contested tariffs, court challenges, and mixed signals about potential easing after Trump–Xi talks. Analysts doubt coercive US tactics will extract Chinese concessions; US retailers are pushing Chinese suppliers to absorb tariff costs; and US farmers face stagnant soybean exports despite a truce. Boeing sees uncertain prospects amid trade headwinds.
Broader trade moves include threatened 50% tariffs on the EU and doubled steel tariffs tied to support for Nippon Steel’s US investments. Courts have temporarily blocked some Trump tariffs, prompting White House pushback and appeals.
In technology and finance, the US dismissed its Binance lawsuit, signaling a softer crypto stance after pro-crypto overtures, with figures like Justin Sun touting momentum. Nvidia’s CEO criticized US chip curbs on China as ineffective, while Beijing resists new bans with growing confidence. Alibaba reported a surge in US buyer activity post-truce.
Other notes: tensions spill into academia with Harvard suing over foreign student bans; a tepid response from wealthy Chinese to a new US “gold card” visa; and India relations in focus, with calls to step back from Brics and optimism on a US-India deal. Overall, policy volatility, legal battles, and geopolitical competition define the current US trade and business landscape.
Entities: United States, China, Donald Trump, Xi Jinping, Nvidia • Tone: analytical • Sentiment: neutral • Intent: inform
