7th May 2025

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

‍
TRADE:

• US Treasury Secretary Bessent and USTR Greer are traveling to Switzerland on Thursday to meet Beijing’s lead economic representative, potentially paving the way for broader trade talks. (WSJ)
• Bessent said in a Fox News interview that the conversations with China in Switzerland will take place on Saturday and Sunday. He also stressed that these are just initial talks, focused on de-escalation, and it remains to be seen how the conversations will go. (FBN via WSJ)
• Washington and Beijing are expected to discuss over the weekend reductions of the broader tariffs, according to Reuters sources, who note the negotiating teams are also expected to discuss eliminating duties on specific products, U.S. policies on de minimis and the U.S. export control list. (RTRS)
• China’s Ministry of Commerce said Beijing agreed to trade talks with Bessent because the U.S. had sent signals that it was willing to adjust its tariffs. (WSJ)
• US authorities are expected to decide on copper tariffs well before a year-end deadline, according to a trade group. (BBG)
• Shein and Temu saw double-digit sales declines in the week after they raised retail prices to cover the costs of increased US tariffs. (BBG)
• Chinese traders are scouring the globe for alternative sources of rapeseed, as tensions with Canada, their top supplier, risk choking imports of a key ingredient in animal feed. (BBG)

‍

MACRO:

• The PBoC said it would lower the reserve requirement ratio by 0.5 percentage point on May 15th, releasing about 1 trillion yuan ($138 billion) in liquidity. Will also lower the rate on seven-day reverse repurchase agreements by 10bps to 1.40%, effective May 8th; other interest rates will drop in line. (Newswires)
• The PBoC said it will set up low-cost relending facilities for purchases of tech-related bonds, and for investments in elderly care and services consumption. Similar existing tools to support agriculture and small businesses will be enhanced. The PBOC is also trimming mortgage costs for some buyers. (RTRS)
• China's chairman of the Securities Regulatory Commission said authorities will help A-share listed companies affected by tariffs to cope with difficulties. (RTRS)
• China's head of the National Financial Regulatory Administration said Beijing will expand a pilot scheme allowing insurance companies to invest in stock markets by an additional 60 billion yuan ($8.31 billion). (RTRS)
• Taiwanese investors are fast pulling money out of local exchange-traded US bond funds, reversing an earlier trend that made them the biggest buyer group of such products in Asia. (BBG)
• The dollar may face a $2.5 trillion “avalanche” of selling as Asian countries unwind their stockpile of the world’s reserve currency, according to Eurizon SLJ Capital’s Stephen Jen. (BBG)
• Columbia Threadneedle Investment closed wagers against the dollar, taking profit on those bets and citing crowded positioning and markets already pricing in cuts to US interest rates. (BBG)
• Deutsche Bank's analysts note the tally of announced buybacks in the US over the past three months has now risen to $518bln, the biggest rolling three-month sum on record. (FT)
• Efforts by the biggest US public exchanges to offer overnight trading moved a step closer after the committee responsible for posting real-time trading data said it’s looking to extend operating hours. (BBG)
• Japan's service sector activity returned to growth in April after stagnating the previous month, helped by improved orders, a stark contrast to continued weakness in manufacturing, the final au Jibun Bank Services PMI showed. (RTRS)
• The Hong Kong dollar’s funding costs plunged the most since 2008, as the monetary authority’s intervention to defend the currency peg helped boost liquidity in the financial system. (BBG)
• 'European companies sound alarm over strong euro' FT article highlights the growing number of large European exporters expressing concerns over the single currency's surge against the Dollar. (FT)
• German factory orders climbed in March, reflecting the stockpiling of goods in the U.S. to get ahead of tariffs placed by the Trump administration in the following month. (WSJ)
• Strategists at Bank of America Corp. and BNP Paribas SA are bullish on long-maturity gilts in a bet that the BOE could stop the bond sales from October. (BBG)
• New Zealand’s jobless rate unexpectedly held steady in the first quarter as fewer people sought work in a sluggish economy. (BBG)
• RBNZ's latest bank report said risks to New Zealand’s financial system have increased in the past six months due to an escalation in market volatility amid rising trade tensions fanned by the Trump White House. (WSJ)
• Sweden’s underlying inflation accelerated less than expected last month, likely feeding expectations that the Riksbank will resume easing to aid the sluggish economy. (BBG)

‍

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

‍

GEOPOLITICS:

• Pakistan's Army Chief said they will respond to India's military strikes at the time, place and in a way of Pakistan's choice. Pakistan army chief also said 26 civilians died and 46 were injured due to the action. (Sky News Arabia)
• Chinese President Xi Jinping is due to start a four-day visit to Russia on Wednesday and is expected to sign numerous agreements to deepen the already tight "no limits" strategic partnership with Moscow. (RTRS)
• The U.S. is stepping up its intelligence-gathering efforts regarding Greenland, drawing America’s spying apparatus into President Trump’s campaign to take over the island, according to WSJ sources. (WSJ)
• Trump said it is not a good time to invite Russia to rejoin the Group of Seven major economies, months after saying he’d like to see the nation reinstated. (BBG)

‍

EQUITIES:

• Advanced Micro Devices guided for higher revenue in the current quarter after logging higher profit and sales in the fiscal first quarter. CEO Su said strength in the company’s core businesses and expanding data center and AI momentum drove the revenue growth. (WSJ)
• Super Micro Computer forecast fourth-quarter revenue below Wall Street estimates and said economic uncertainty and tariffs might pressure near-term performance. (RTRS)
• Marvell Technology said it is postponing a previously scheduled investor day conference, citing a "dynamic macroeconomic environment," as global trade tensions generate economic uncertainty. (RTRS)
• Rivian Automotive said full-year deliveries will decline more sharply than it anticipated just a month ago, citing risks that Trump’s trade war will further dampen demand for pricey electric vehicles. (BBG)
• OpenAI has told investors it will share a smaller fraction of revenue with major backer Microsoft as it moves ahead with its restructuring. (The Information)
• Amazon’s self-driving start-up Zoox will scale up production next year, as it accelerates plans for a commercial rollout of its fleet of robotaxis in the US. (FT)
• Lucid stuck to its 2025 production forecast despite the threat of tariffs forcing many automakers to pull back targets, while the luxury EV maker reported first-quarter revenue below expectations. (RTRS)
• Coty cut its fiscal 2025 profit forecast on Tuesday and postponed its investor day by at least a few months due to macroeconomic and tariff uncertainty. (RTRS)
• Fortuna Mining CEO in FT warns the industry to remain “disciplined” after the price of gold surged to a record high, urging executives to avoid a repeat of the mistakes made during a similar rally a decade ago. (FT)
• Mosaic beat Wall Street expectations for first-quarter profit, driven by strength in its South America business. (RTRS)
• Wynn Resorts posted first-quarter results that missed Wall Street estimates, owing to sluggish business across its luxury resorts. (RTRS)
• TikTok tried to persuade advertisers of its confidence in the platform’s future in the U.S. during its sales presentation to marketers in New York City on Tuesday. (WSJ)
• Prospective investors in CATL's Hong Kong listing to raise about $5 billion have been told the stock may be sold at a discount of less than 10% to the company's Shenzhen-listed shares, according to Reuters sources. (RTRS)
• BMW despite a miss on sales estimates, reaffirmed its 2025 outlook, whilst it also posted stronger profit figures than expected. Co. said it expects some auto tariffs to be temporary. (Newswires)
• Novo Nordisk beat operating profit estimates but missed on sales, whilst also cutting its guidance due to GLP-1 competition. (Newswires)
• Novartis CEO said to FT that China has seized on geopolitical turmoil to present itself as stable and business friendly. (FT)
• Veolia said it agreed to buy Caisse de depot et placement du Quebec’s minority stake in its Water Technologies and Solutions subsidiary for $1.75 billion, taking full ownership of the subsidiary. (WSJ)
• Mitsubishi Motors plans to sell an EV model developed by a unit of Foxconn Technology in Australia and New Zealand in the second half of 2026. (WSJ)
• Bain Capital has a plan for Japanese aircraft parts maker Jamco. It wants to arm the company with the financial means to snap up its peers, turning it from target to acquirer as the industry consolidates. (WSJ)

‍