6th May 2025

PiQ is Proudly Partnered with Pepperstone - A Better Way To Trade - FIND OUT MORE

‍

TRADE:

• President Trump said he plans to announce pharmaceutical tariffs over the next two weeks. (RTRS)
• The US is rumored to reveal details on semiconductor tariffs in the coming days. (DigiTimes)
• Trump signed an executive order that aims to reduce the time it takes to approve pharmaceutical plants in the country, as part of new regulations to encourage domestic manufacturing. (RTRS)
• White house aides and advisors say Trump has no intention of abandoning his trade showdown with China. (Politico)
• U.S. Commerce Secretary Lutnick, in a Fox Business interview, said getting a trade deal with Canada is going to be complex, and said that a meeting between President Trump and Canadian PM Carney will be "fascinating... I just don't see how it works out so perfect". (FBN)
• FT article 'Chinese exporters undervalue cargo to skirt Trump tariffs' notes suppliers to small US businesses claim to reduce costs of duties in fraud that is difficult to police. (FT)
• Strains are emerging in China's job market about a month into the country's full-on tariff war with the U.S., testing Beijing's determination not to cave to the pressure from Donald Trump's trade policy. (Nikkei)
• 'European and Asian carmakers face steep shipping costs to US on top of tariffs' article by the FT notes Trump’s new port fee policy threatens to wreak havoc on the $150bn American seaborne car import market. (FT)
• Lawmakers in Japan's ruling Liberal Democratic Party are fighting a proposal to offer to import more U.S.-grown rice as a part of a deal on tariffs with the Trump administration. (Nikkei)

‍

MACRO:

• 'Fed Confronts Lose-Lose Scenario Amid Haphazard Tariff Rollout' by WSJ's Timiraos notes the Fed is on track to extend their wait-and-see stance on cutting rates amid their determination to avoid prematurely abandoning their inflation fight. (WSJ)
• Two big American shale producers (Diamondback and Coterra) said they would cut capex in response to sliding oil prices, prompting industry warnings that US production had peaked and could begin falling. (FT)
• The Taiwan dollar stabilised on Tuesday, halting a seven-session rally. "The central bank has probably stepped in," a Taiwan forex trader said, cited by Reuters, noting the appreciation had noticeably slowed Tuesday morning. (RTRS)
• Hong Kong's de-facto central bank stepped into the foreign exchange market on Tuesday as the currency hit the top end of its band for a fourth time this month. (RTRS)
• Hong Kong's freight forwarding industry is reeling from the U.S.-China trade war with 41% of container capacity from the city to North America's west coast cancelled for the week starting May 12. (SCMP)
• Chinese travellers' spending rose 8% year-on-year during the May Day holiday to 180.27 billion yuan ($24.92 billion), but was still off pre-pandemic levels, while the country's services activity expanded at the slowest pace in seven months in April. (RTRS)
• China’s trade flows increased at the end of April, indicating the damage from US tariffs has yet to manifest in actual shipments even though the trade war is widely expected to eventually slow the world’s second-largest economy. (BBG)
• The EU will publish plans on Tuesday to ban new Russian gas deals by the end of the year, and phase out existing contracts with Moscow by end-2027, three EU officials told Reuters. (RTRS)
• 'EU set to make it easier for UK professionals to work in the bloc' FT article notes Brussels is due to propose legislation to enable the recognition of qualifications of British lawyers and others. (FT)
• New Zealand’s governing National Party wants to restrict access to social media for those aged under 16 years, mirroring a move in Australia that sparked criticism from global tech giants. (BBG)
• Thailand’s inflation turned negative for the first time in more than a year on cheaper fuel prices and increased fresh food supplies, creating more room for the central bank to cut rates further to deal with the impact of the trade war. (BBG)
• Trump's tariff policy will damage Thailand's key business sectors, from autos to food processing and agriculture, potentially causing a loss of up to 800 billion baht ($24 billion) to the local economy, according to the head of an influential local business group. (Nikkei)

‍

🤝 PiQ is Proudly Partnered with Pepperstone - A Better Way To Trade - FIND OUT MORE

‍

GEOPOLITICS:

• The European Union will publish plans on Tuesday to ban new Russian gas deals by the end of the year, and phase out existing contracts with Moscow by end-2027, three EU officials told Reuters.
• Kyiv forces attacked a power substation in Russia's western Kursk region, the regional governor said on Tuesday, after Russian war bloggers reported a new Ukrainian land-based incursion into the area backed by armoured vehicles and drones.
• Multiple explosions and fires were seen and heard in Sudan's capital Port Sudan early on Tuesday, a witness said, though the exact locations and causes were unclear, as a civil war rocks the previously quiet city for the third day.
• The Israeli military said it carried out airstrikes against Yemen's Hodeidah Port on Monday, a day after the Iran-aligned Houthis fired a missile that struck near Israel's main airport.

‍

EQUITIES:

• Palantir Technologies raised its full-year outlook after logging higher profit and revenue in the first quarter, fueled by continued demand for its AI products. Shares still fell in after hours trade. (WSJ)
• Ford's net profit was hit heavily by production halts and an unprofitable EV business in the first quarter. Ford also suspended its guidance for the full year due to tariffs, but warned tariff-related costs would shave around $1.5 billion off its adjusted pretax earnings. (WSJ)
• Ford has warned of potential disruptions caused by China's restrictions on exports of rare-earth minerals amid its trade war with the U.S. (Nikkei)
• Hims & Hers Health first-quarter revenue more than doubled as subscribers rose 38%, while its second-quarter sales outlook missed Wall Street’s expectations. (WSJ)
• DoorDash will buy British meal delivery firm Deliveroo for 2.9 billion pounds as a part of the U.S. online delivery platform's plans to expand into international markets. (RTRS)
• The DoJ has proposed that Alphabet's Google divest its AdX advertising marketplace and ad server DFP after a federal judge found the company illegally dominated two online ad-tech markets. (RTRS)
• Alphabet's self-driving unit Waymo said that it plans to build Jaguar I-PACE and Zeekr vehicles with its autonomous technology at a new plant in Arizona as soon as this year, with Canadian auto parts supplier partner Magna International. (RTRS)
• Mattel withdrew its annual financial targets and said it would increase prices for some products in the US as Trump administration's sweeping tariffs bump up input costs for the toymaker. (RTRS)
• Nike’s president of consumer, product and brand is retiring, and the sportswear company plans to break up her role into three separate positions. (WSJ)
• CATL has filed a preliminary prospectus with the Hong Kong Exchange for a secondary listing, seeking to leverage the rapidly growing electric-vehicle market. (WSJ)
• Continental AG more than doubled earnings in the first quarter as its car-parts unit slashed costs and tire sales bounced back from weaker levels last year. (BBG)
• Philips cut its profit margin forecast for 2025, citing a net impact from U.S. tariffs of between 250 and 300 million euros ($283 million-$340 million) despite "substantial tariff mitigations". (RTRS)
• Vestas Wind Systems A/S maintained its profit guidance for this year as the company continues to execute on a turnaround plan after steep losses in recent years. (BBG)

‍