23rd April 2025

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TRADE:

• US President Trump said the 145% tariffs on China are “very high... It won’t be that high... It will come down substantially. But it won’t be zero”. He said China has to make a deal, and if they don't, the US will set a deal for them. Trump added he would be very nice in negotiations with China. (RTRS)
• Japanese Economy Minister Akazawa could head to the US for the second round of tariff talks as early as April 30th. (TV Asahi)
• China recently asked South Korean companies not to ship products containing China's rare earth minerals to U.S. defence firms. (Korea Economic Daily)
• Chinese President Xi Jinping, speaking in Azerbaijan, said that tariff and trade wars undermine the legitimate rights and interests of all countries. (RTRS)
• Chinese plastics plants that buy liquefied petroleum gas are turning to the Middle East to replace tariff-hit imports from the US, disrupting global flows and reviving moribund freight rates. (BBG)
• Mercedes-Benz CEO urged the EU to find an "equitable solution" to create a level-playing field for China-made EVs in Europe. (RTRS)
• Vietnam is seeking to speed up its negotiations for new free trade agreements while more effectively exploiting the 17 ones it has already signed, as its export-reliant economy is bracing for U.S. tariffs. (RTRS)
• The US and South Africa will hold a first round of bilateral talks this week. (Business Day)
• India is considering cutting tariffs on high-end motorcycles to zero, as New Delhi strategizes on how to cut a trade deal with Trump without conceding too much of its own protectionism. (BBG)

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MACRO:

• Trump said he is not planning to fire Fed Chair Powell, saying to reporters, “I would like to see him be a little more active in terms of his idea to lower interest rates…but, no, I have no intention to fire him”. (WSJ)
• Fed Governor Kugler said that with US import tariffs significantly larger than expected, the bank should keep rates unchanged until inflation risks recede. Whilst she also highlighted financial market volatility as a concern that could impact growth. She disagreed with the notion the US is losing safe haven status. (RTRS)
• Tesla CEO Musk said he will cut back his work for President Trump to a day or two per week starting sometime next month. (RTRS)
• The ratio of positive to negative comments on macroeconomic conditions during this reporting season has dropped well below its average and is on track for the worst proportion since 2009, according to a BofA analysis of the first conference calls. (BBG)
• Investors are scrutinizing this week's US Treasury auctions for any signs of faltering demand from foreign buyers such as China, with particular focus on Wednesday's 5yr given data showing its popularity with foreign buyers. (BBG)
• Premiums in Treasury options to protect against even bigger losses are at their highest since the “flash crash” of 2021. (BBG)
• Janus Henderson Investors sees a potential reduction in its US exposure by 10%, underscoring an emerging shift away from the world’s largest financial market as the Trump administration’s policies undermine its appeal. (BBG)
• China will allow certain products traded on the Shanghai Gold Exchange to be delivered overseas by establishing storage facilities in other countries – part of a broader effort to promote the yuan and reduce reliance on the US dollar and US financial systems. (SCMP)
• Multiple Chinese provincial and municipal governments are mulling new round of stimulus to boost consumption. (Securities Times)
• Chinese corporate and government borrowers have pushed issuance of dollar and euro bonds to a record proportion of all such note sales in emerging markets this month, in one sign of resilience to the trade war. (BBG)
• The BoJ, according to a Reuters poll, is likely to hold its key rate through June, with a 25bps hike next quarter expected by a slight majority of respondents rather than over two-thirds in a poll last month. (RTRS)
• Japan's factory activity shrank for the tenth consecutive month in April as confidence among manufacturers dived to almost 5-year lows, according to the au Jibin Bank flash PMI. On the brighter side, the service sector activity returned to growth as customer demand improved further and helped lift sales. (RTRS)
• UK government borrowing exceeded official forecasts made just last month, highlighting the fragile state of the public finances even before US tariffs dimmed the economic outlook. (BBG)
• Fewer UK housebuilders are citing planning delays as a major hurdle this year, as government measures aimed at unblocking the long-criticized system begin to take effect. (BBG)
• Reuters article 'Swiss franc's surge on tariff turmoil pressures SNB to act' notes the Franc's 9% appreciation vs the Dollar in April is the best month since 2008 and cites analysts suggesting intervention is the SNB's best tool. (RTRS)
• Mark Carney’s Liberal Party is holding on to a narrow lead in opinion surveys with less than a week to go before Canada’s election, as US tariff threats remain a top issue in the campaign. (BBG)
• Singapore’s key inflation gauge fell to its lowest since March 2021 as the prices of utilities, as well as household goods and services slowed. (BBG)
• A Brazilian official said China and its partners in the Brics group of developing countries will increasingly stand up for international co-operation as the US withdraws under President Donald Trump. (FT)
• India’s economic activity improved in April on strong international demand for goods and services, a flash survey by HSBC Holdings Plc showed. (BBG)
• Chocolate makers have slashed their use of hedges against price rises due to the soaring cost of futures contracts, in a bet that the huge bull market in cocoa is finally over. (FT)

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GEOPOLITICS:

• Ukrainian President Zelensky pushed back on a US proposal to recognize Russia’s control of Crimea as part of a cease-fire agreement, throwing into doubt President Trump’s efforts to bring an end to the war. (WSJ)
• European capitals see Putin's offer to freeze the front lines in Ukraine and give up territorial claims on land not already captured by Russian troops as a false concession aimed at luring Trump into a deal that would betray Ukraine and Europe. (FT)

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EQUITIES:

• Tesla reported a miss on EPS and Revenue estimates but shares rallied after CEO Musk announced he would be scaling back his role in government starting in May. Musk also said that the production of its Optimus humanoid robots had been affected by China's export restrictions of rare earth magnets. (RTRS)
• ByteDance, Alibaba and Tencent have stockpiled billions of dollars worth of Nvidia's H20 artificial intelligence chips this year before the U.S. cut off shipments of the components in April. (Nikkei)
• Intel is poised to announce plans this week to cut more than 20% of its staff, aiming to eliminate bureaucracy at the struggling chipmaker. (BBG)
• Google Pixel smartphones may soon be made in India after Alphabet initiated talks with contract manufacturing partners Dixon Technologies and Foxconn to shift part of global production to India from Vietnam due to harsher tariffs on the latter. (TechInAsia via dnystedt; note report from Tuesday)
• Lenovo, HP and Dell, are all reportedly planning computer factories in Riyadh, Saudi Arabia, in response to US tariffs. Saudi Arabia enjoys the minimum reciprocal US tariff rate of 10%. It is reportedly offering subsidies, government orders, possible investments, to attract manufacturers. (DigiTimes via dnystedt)
• Brandon Lutnick, son of US commerce secretary Howard Lutnick, is partnering with SoftBank, Tether and Bitfinex to launch a listed Bitcoin SPAC, in an attempt to replicate the success of MicroStrategy. (FT)
• Nike Inc. has appointed a new top strategy executive as its leadership team tries to turn things around at the world’s largest sportswear company. (BBG)
• Trump's social media firm, Trump Media & Technology Group, said it had reached a binding agreement to roll out an array of retail investment products, including crypto, in its latest bid to diversify into financial services. (RTRS)
• Capital One posted higher first-quarter profit as consumers spent more on credit cards. (BBG)
• OpenAI CEO Sam Altman will step down as chairman of nuclear technology startup Oklo, paving the way for potential tie-up between the companies. (RTRS)
• 'Consulting Firms Offer to Cut Up to $20 Billion From Federal Contracts', where Booz Allen Hamilton, Guidehouse and others are negotiating with General Services Administration as part of broad review of government contractors. (WSJ)
• The US HHS and FDA unveiled measures to eliminate petroleum-based synthetic dyes in food, including Red 40, Yellow 5 and 6, Green 3, and Blue 1 and 2. Kellogg said it plans to work with the agencies to find ways to remove the dyes from all of its products. (WSJ)
• Brazil’s JBS SA has received approval from the US SEC for its proposed share listing in New York, clearing another hurdle in the meatpacker’s pursuit to boost its market valuation. (BBG)
• SAP reported an adjusted operating profit of 2.5 billion euros ($2.86 billion) for the first quarter of the year that came in above analysts' estimates. It reaffirmed its cloud revenue guidance for the year. (RTRS)
• BMW plans to start integrating AI from Chinese startup DeepSeek in its new models in China from later this year, CEO Oliver Zipse said. (RTRS)
• European pharmaceutical bosses have called on the EU to increase drug prices towards the much higher levels paid by the US, saying it will encourage innovation. (FT)
• Danone beat first-quarter sales expectations, as strong demand in China for infant milk formula and medical nutrition products outpaced weakness in coffee creamers in the United States. (RTRS)
• Ryanair CEO says the Co. has taken advantage of the fall in oil prices to hedge a “significant” amount of its future fuel requirements, and is yet to see any impact on bookings from US tariff turmoil. (FT)
• Reckitt Benckiser Plc reported lackluster sales growth and said market conditions could affect the timing of its transformation. (BBG)
• Volvo AB’s income declined in the first quarter as uncertainty around US tariffs hit demand for trucks in North America. (BBG)
• BYD is overhauling its European operations after strategic missteps including failures to sign up enough dealers and hire executives with local-market knowledge and to offer hybrids in markets resistant to fully electric vehicles. (RTRS)
• Xiaomi Corp. pushed back the debut of its first sport utility vehicle following a fatal accident involving its marquee electric car, a blow to its ambitions to put pressure on Tesla Inc. and BYD Co. (BBG)
• The Nomura executive tasked with overhauling Nomura’s global investment operations after a $2.9bn hit from the collapse of Archegos has said his traders are finally closer to being able to go “max risk”. (FT)
• Bearish bets on shares of SK Hynix Inc. surged to an all-time high this month, as South Korea ended its ban on short-selling at perhaps the worst possible time for the memory chipmaker. (BBG)
• LG Electronics Inc. has paused work on the initial public offering of its Indian unit amid market volatility. (BBG)
• Woodside Energy said it is assessing the impact of recent U.S. tariff action and the potential for more policy shifts affecting its Louisiana LNG gas-export project. (WSJ)

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