5th May 2025

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TRADE:

• Trump said on Sunday he is willing to lower tariffs on China at some point because the levies now are so high that the world’s two largest economies have essentially stopped doing business with each other. (NBC)
• Trump told reporters aboard Air Force One on Sunday that he has no plans to speak with Chinese President Xi Jinping this week, saying the two sides are “talking about different things.” (BBG)
• “It could very well be,” Trump told reporters on Sunday when asked whether any trade agreements were coming this week. He didn’t specify any countries. (BBG)
• Trump on Sunday announced a 100% tariff on movies produced outside the country, saying the American movie industry was dying a "very fast death" due to the incentives that other countries were offering to lure filmmakers. (RTRS)
• Japan has no plans to threaten to sell its $1 trillion-plus holdings of U.S. Treasuries in trade talks with Washington, its finance minister said on Sunday, clarifying earlier remarks that the bond holdings could be used as a bargaining chip. (RTRS)
• Top U.S. and Japanese officials agreed to immediately start working-level consultations to build upon trade-related discussions held in a meeting in Washington, the U.S. Treasury Department said on Friday. (RTRS)
• US tariffs on semiconductors are likely to be 25-100% when unveiled Wednesday, according to Taiwan media, adding the US Commerce Dept said it has only received 10 statements from companies regarding the possible tariffs, which caused concern the low number of comments may lead officials to believe there is very little objection to the tariffs. (UDN)
• Trump’s trade adviser Navarro warned the UK against deepening trade ties with China, potentially complicating tariff talks between Washington and London. (Telegraph)
• Chinese exporters ‘wash’ products in third countries to avoid Donald Trump’s tariffs. (FT)
• Mexican President Sheinbaum said she rejected an offer by US President Trump to send US troops across the border to help combat drug trafficking. (BBG)
• A trade association representing footwear producers has asked the Trump administration to consider tariff exemptions for its products, saying the levies will drive up the cost of shoes in the US and cause businesses to shutter. (BBG)

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MACRO:

• Taiwan’s dollar surged as much as 5% on Monday, the biggest intraday gain in over three decades, on speculation exporters are rushing to convert their holdings of US dollars to the island’s currency. (BBG)
• Trump said on Sunday he will not remove Jerome Powell as Fed chair before his term ends in May 2026, but said Powell was "a total stiff" and repeated his call for the Fed to lower rates. (RTRS)
• Trump said he is not worried about a US recession and that anything can happen, but he thinks they are going to have the greatest economy in history. (Newsquawk)
• Trump on Sunday said he expects to leave the White House at the end of his second term without trying to run again. (WSJ)
• Oil opened lower after Reuters sources reported OPEC+ will accelerate oil output hikes and could bring back to the market as much as 2.2mln BPD by November. (RTRS)
• Hong Kong's de-facto central bank said it sold HK$46.54 billion ($6 billion) into the market on Saturday to prevent the local currency from strengthening beyond its official peg to the U.S. dollar, the first such intervention in more than four years. (RTRS)
• Chinese firms are purchasing LNG shipments from the spot market, a reversal of months of relative inactivity from the world’s top buyer, after prices slumped to the lowest level in about a year. (BBG)
• Swiss inflation fell to an unexpectedly low 0% in April, government data showed on Monday, increasing the chances the Swiss National Bank will cut rates again next month. (RTRS)
• Australia’s Anthony Albanese claimed a historic second term as prime minister on Saturday in a dramatic comeback against once-resurgent conservatives that was powered by voters' concerns about the influence of US President Trump. (RTRS)
• Investors are buying currency options on the Australian dollar, wagering it will outperform its New Zealand counterpart as global trade tensions ease. (BBG)
• Singapore’s ruling party secured a convincing victory in Saturday’s election. (BBG)
• Vietnam’s prime minister said the nation’s economic growth target remains unchanged this year despite the many challenges it faces, as the threat of US tariffs creates uncertainty for exporters and businesses. (BBG)

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GEOPOLITICS:

• Israel is readying a "massive response" to Houthis and Iran after an airport missile attack, according to the Washington Examiner. (Newsquawk)
• WSJ article "America’s New Pacific Army Commander Lays Out His China Strategy" notes Gen. Ronald Clark says ‘extraordinary times’ demand agile ground forces, new missile systems and a different way of thinking. (WSJ)
• Russian President Putin said in comments broadcast on Sunday said that the need to use nuclear weapons in Ukraine had not arisen, and that he hoped it would not arise. Putin said that Russia has the strength and the means to bring the conflict in Ukraine to a "logical conclusion". (RTRS)
• Chinese President Xi Jinping will make an official visit to Russia from May 7-10 to participate in celebrations of the 80th anniversary of the defeat of Nazi Germany, the Kremlin said on Sunday. (RTRS)

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EQUITIES:

• Warren Buffett announced he will step down as chief executive of Berkshire Hathaway at the end of 2025, and hand over the reins to Vice Chairman Greg Abel. (RTRS)
• Berkshire Hathaway’s operating earnings fell about 14% from a year earlier and its cash pile surged to a record $347.7 billion as the conglomerate struggled to put money to work amid tariff uncertainty. (BBG)
• Warren Buffett on Saturday gave a full-throated endorsement to the five Japanese trading houses in which his conglomerate Berkshire Hathaway has invested. Greg Abel added that he envisioned Berkshire owning the trading houses for 50 years "or forever." (RTRS)
• Apple plans an iPhone release schedule shake-up and new styles. (The Information)
• Two Republican lawmakers have urged the SEC to delist Chinese companies, including Alibaba Group, that they say have military links that put U.S. national security at risk. (FT)
• Shell is working with advisers to evaluate a potential acquisition of rival BP, though it is waiting for further stock and oil price declines before deciding whether to pursue a bid, according to Bloomberg sources. (BBG)
• Huawei is building a production line for advanced chips as part of a network of semiconductor facilities in Shenzhen that seeks to break China’s dependence on foreign technologies. (FT)
• Ant Group, an affiliate of China's e-commerce giant Alibaba Group, plans to list its overseas arm, Ant International, on the Hong Kong stock exchange. (Caixin)
• Toyota warns time running out to challenge China’s lead in hydrogen vehicles, calling for international investment in the fuel to avoid Chinese dominance of supply chains and exports. (FT)
• Australia’s Gold Road Resources agreed to a sweetened US$2.4 billion takeover by South Africa’s Gold Fields. (WSJ)

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