12th March 2025

MACRO:

• The Trump administration imposed 25% tariffs on all steel and aluminum imports, after the U.S. and Canada backed off threats to impose additional measures Tuesday. (WSJ)
• China's Foreign Ministry, in response to Trump's steel and aluminum tariffs, said, "China will take all necessary measures to safeguard its rights and interests. If the U.S. insists on suppressing China, we must resolutely counter it." (Newswires)
• The EU launched countermeasures on Wednesday against new US tariffs on steel and aluminum, with plans to impose duties on €26 billion worth of American goods. (BBG)
• France's European Affairs Minister, Benjamin Haddad, said on Wednesday the European Union could go further in its response to U.S. tariffs, though a trade war was in no-one's interest. (RTRS)
• Trump’s administration hit out at Japan’s elevated rice tariffs, signaling that the grain and Tokyo will likely be targeted as the US seeks to apply reciprocal tariffs in the coming weeks. (BBG)
• Trump’s stop-and-start trade policy and uneven economic messaging have rattled some of his own allies, triggering a flood of calls from business executives, concerns from Republican lawmakers and tension in the White House. (WSJ)
• Nearly two months into Trump’s presidency, his advisers say he is more determined than ever to carry out his far-reaching tariff agenda, despite increasing pressure to change course. Most of Trump’s current advisers aren’t trying to dissuade him from invoking tariffs, but are instead advocating for more targeted tariffs with exemptions for key sectors. (WSJ)
• The House narrowly approved a Republican proposal to fund the government into the fall, as GOP lawmakers remained largely united following a last-minute push from the White House, overcoming Democratic opposition and setting up a fight in the Senate. (WSJ)
• The Republican-controlled U.S. House of Representatives voted on Tuesday to delays lawmakers' ability for the rest of the year to force a vote that could revoke Trump's tariffs and immigration actions. (RTRS)
• Goldman Sachs said global hedge funds accelerated the unwinding of stock positions on Monday, and this trend is likely to continue, saying, "Through [Monday], our best guess is that we are currently in the middle innings of this (de-risking) episode". (RTRS)
• Goldman Sachs strategists have significantly raised their forecasts for US credit spreads amid tariff risks and signs the White House will tolerate near-term economic weakness. (BBG)
• Traders in the futures and options markets are loading up on bets the Fed will have to lower rates this year by more than expected because of the Trump administration’s aggressive policy agenda. (BBG)
• Bridgewater founder Ray Dalio warned that a significant supply-demand problem regarding U.S. debt could have a profoundly disruptive impact on the global economy., which could result in a restructuring of the debt, the U.S. applying pressure on other countries to buy the debt, or even cutting off payments to some creditor countries. (CNBC)
• BoJ Gov. Ueda reiterated Wednesday that bond yields should be determined freely in the market, suggesting that the central bank doesn’t have any immediate plans to intervene to stop yield rises. JGB yields initially rose in reaction the comments. (WSJ)
• Japan's annual wholesale inflation hit 4.0% in February, matching forecasts, underscoring pressure from rising raw material costs that will keep alive market expectations of a near-term interest rate hike by the central bank. (RTRS)
• A Bloomberg survey shows BoJ watchers still expect the pace of interest rate hikes to be gradual, although they now see rates rising to a higher level in the current cycle. All 52 economists expect no policy change at March 19th announcement. July remained the favorite choice for the next hike. (BBG)
• Many of Japan's biggest companies from tech conglomerates to Toyota have met union demands for substantial wage hikes for a third consecutive year, seeking to help workers cope with inflation and retain staff amid labour shortages. (RTRS)
• Japan struggles to adapt to an era of rising prices. (FT)
• China summoned Walmart executives on Tuesday to express its concern after the US retailer reportedly urged its Chinese suppliers to absorb increased American trade tariffs by lowering prices. (BBG)
• Alibaba Chairman Joe Tsai said that Chinese President Xi Jinping’s meeting with entrepreneurs last month gave businesses confidence to make investments. He said, “People underestimate the importance of that meeting”. (CNBC)
• China's yuan climbed to a four-month high against the dollar on Wednesday. (RTRS)
• China and Hong Kong stocks traded lower on Wednesday, pressured by consumer and tech shares, as investors locked in profits from recent rallies while evaluating the impact of U.S. tariffs. (RTRS)
• China has issued more licenses allowing copper smelters to export metal tax-free, aiding local producers and paving the way for greater overseas sales at a time of upheaval in the global market. (BBG)
• Australia will not impose reciprocal tariffs on the US, Prime Minister Anthony Albanese said on Wednesday, after Trump ruled out exemptions or exceptions for all countries on steel and aluminium tariffs. (RTRS)
• UK Prime Minister Keir Starmer calls cutting foreign aid to fund defense a “difficult decision,” but it could help his finance minister balance the budget. (BBG)
• The UK government is abolishing the Payment Systems Regulator as part of its attempts to cut “unnecessary regulation” and stoke economic growth. (BBG)
• Developers in the Philippines, Thailand and Vietnam are facing oversupply concerns on weak consumer demand, with some scaling back new residential projects. (BBG)

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GEOPOLITICAL:

• Sweden has said European countries need to strengthen their defence ties in Nato without the US and invest more in their own military capabilities in areas such as space and satellites. (FT)
• China will hold talks with Russia and Iran on the "Iranian nuclear issue" in Beijing on March 14, the Chinese foreign ministry announced on Wednesday. (RTRS)
• Greenland opposition party Demokraatit scores a surprise election win as voters favor a slower approach to independence from Denmark. (BBG)
• Houthis say they'll resume attacks on Israeli ships in the Red Sea and Gulf of Aden after Israel cuts off aid shipments to the Gaza Strip. (BBG)

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EQUITIES:

• Intel shares are surging out of hours after Reuters reported TSMC has pitched Nvidia, AMD, and Broadcom about taking stakes in a JV that would operate Intel's factories. TSMC would run the operations of Intel's foundry division but it would not own more than 50%. Qualcomm has also been pitched by TSMC. (RTRS)
• Google is in final talks to acquire AdHawk Microsystems Inc., a maker of eye-tracking technology, part of a renewed push into headsets and smart glasses. (BBG)
• Salesforce plans to invest $1 billion in Singapore over the next five years, joining other US technology companies in betting on growth in Southeast Asia. (BBG)
• Rheinmetall expects group sales to grow by 25% to 30% in 2025 as a result of the Russian invasion of Ukraine and the decoupling of the United States from Europe, whilst it reported FY24 sales beneath analyst estimates. (RTRS)
• Porsche said on Wednesday it will keep its dividend for 2024 at the previous year's level despite a 30.4% drop in net profit, as the luxury carmaker battles high costs and intense competition in China. (RTRS)
• Inditex, the owner of fashion brand Zara, said its logistics expansion plan is on track and that it aims to increase the competitive differentiation of the group amid fierce competition. (WSJ)
• Roche Holding agreed a collaboration and licensing deal with Zealand Pharma to co-develop a weight-loss treatment using its CT-388 medicine combined with Zealand Pharma’s petrelintide. (WSJ)
• The new head of the Swiss stock exchange said market volatility stemming from US political uncertainty could hold up some initial public offerings this year, even as the broad outlook for IPOs remains strong. (BBG)
• Northvolt has filed for bankruptcy in Sweden, bringing to an end Europe's best hope of developing a rival to major Asian EV battery players. (RTRS)
• Cathay's double-digit revenue rise squeezed by fuel, staff, landing costs. (Nikkei)
• China's Xpeng hits more than 2-1/2-year peak on Europe entry. (RTRS)
• Toyota will not rule out using the “export potential” of its UK plant to send small volumes of vehicles to the US in a bid to navigate the supply chain challenges posed by Donald Trump’s tariff war, a senior European executive has said. (FT)
• Asahi Group Holdings is investing more in the U.S., paying heed to President Trump’s tariff threats, which has led many global companies to recalibrate their investment strategies. (WSJ)
• Rio Tinto RIOwill raise $9 billion in U.S. investment-grade bonds as it seeks to fund its recently-closed buyout of Arcadium Lithium. (RTRS)