28th March 20225

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

‍

MACRO:

• US President Trump warned automakers not to raise prices due to tariffs, despite the increased costs they face, leaving automakers concerned over potential punishment. WSJ sources noted behind closed doors the The Trump admin has been concerned over inflation. (WSJ)
• Trump is is likely to impose few, if any, tariffs on the energy sector, in large part because of concerns brought up to him by industry executives about potential for rising prices. (WSJ)
• Morgan Stanley noted Thursday that auto dealers have stockpiled a two- to three-month supply of new cars, meaning the impact of the tariffs might not start to be felt until May. At that point, vehicle prices could rise 11% to 12% to offset the tariffs. (WSJ)
• The EU is considering hitting US services exports, including Big Tech’s operations, to retaliate against Donald Trump imposing 25 per cent tariffs on the car industry and promising a further round of measures next week. (FT)
• The EU is set to limit Apple and Meta fines to avoid angering US President Trump. (FT)
• Fed's Collins (voter) said that Trump administration tariffs will drive up inflation in the US but it is unclear how persistent that upward pressure will be. She said she now expects the Fed to hold rates steadier for longer given upside risks to inflation. (RTRS)
• Fed's Barkin (non-voter) said he did not expect consumers to face the full brunt of the 25% auto tariff. He said, "I don't start with an assumption that this is a one-time increase in the price level that you simply look through", noting that policy is in a good place as they await clarity. (RTRS)
• Chinese President Xi said at a meeting with foreign CEOs that China was, is and will certainly be an ideal, safe and promising investment destination for foreign business people. Xi looked to assure CEOs that China is open to dialogue with the US. (RTRS)
• Chinese manufacturers gathered at the Global Cross-Border E-commerce Selection Exhibition in Shenzhen to explore new markets, such as Russia, amid US tariff pressures. However, the article highlights it will be a struggle to replace the US consumer base. (WSJ)
• China’s efforts to reduce local governments’ debt burdens are showing initial effects, the China Securities Journal reports, citing bond issuance data and experts. (CSJ)
• China has issued export quotas for 12.8mln metric tons of gasoline, diesel and aviation fuel in its second batch of allowances this year, down by 1.2 million tons from a year earlier. (RTRS)
• China tightens rules on building new alumina plants, in a bid to tackle overcapacity that has caused a plunge in prices in the world’s top metals market. (BBG)
• The number of outstanding futures and options contracts on Hong Kong's bourse has reached 22 million so far this year, surpassing the record set in 2024 by 70% in less than three months, propelled by big swings in stock markets and hedge fund activity. (RTRS)
• Tokyo core consumer inflation stayed above the central bank's target and accelerated in March on steady gains in food costs, keeping alive market expectations of a near-term interest rate hike. (RTRS)
• BOJ Summary of Opinions from the March meeting showed the board has become more cautious about uncertainties regarding US economic policies and are particularly cautious about considering the timing for further hikes. However, the board sees inflationary pressures heightening. (WSJ)
• GBP is firming after UK retail sales increased for a second month in February, against expectations for a decline. However, there were downward revisions to the priors. (Newswires)
• Britons are saving a historically large portion their disposable income, according to ONS data, a sign that consumers are reluctant to spend in the face of a weak domestic economy and a turbulent global backdrop. (BBG)
• UK households are accumulating a “worryingly” large amount of energy bill debt as they face some of the highest prices in the world, according to a report by the Committee of Public Accounts. (BBG)
• German consumer sentiment is broadly unchanged heading into April, with a focus on saving highlighting uncertainty among households after last month's election in Europe's biggest economy, according to the GfK survey. (RTRS)
• French consumer prices rose less than anticipated in March, as accelerating prices for services will be offset by declining energy prices, preliminary data from statistics agency INSEE showed. (RTRS)
• Australian PM Albanese has called for elections on May 3rd. (Newswires)
• Australia’s inflation-adjusted bond yields jumped to the highest in over a decade as the government announced plans to ramp up debt issuance to alleviate cost-of-living pressures ahead of the election. (BBG)
• Reuters poll shows the RBA will keep its cash rate unchanged on Tuesday as it waits for concrete signs of easing inflation, economists mostly still expect two rate cuts this year with the next likely in May. (RTRS)
• Goldman Sachs economists pushed back their call for Australia’s next interest-rate cut to May from next week. (BBG)
• Foreign investors remain cautious over Turkish assets after last week’s plunge in the value of the lira, despite huge intervention to prop up the currency and restore confidence. (FT)
• A strong earthquake of magnitude 7.7 has hit Myanmar, shaking parts of Thailand and Vietnam. (BBG)
• India scraps ‘Google tax’ to mollify Donald Trump as tariffs loom. (FT)
• India is considering US demands that it lower tariffs and other barriers for its farm goods, sources say, ahead of global levies. (BBG)

‍

GEOPOLITICAL:

• The Trump administration has proposed a new, more expansive minerals deal with Ukraine. (RTRS)
• Russian President Putin suggested Ukraine be placed under a form of temporary administration to allow for new elections and the signature of key accords to reach a settlement in the war. (RTRS)
• "Houthis Weakened but Not Broken by First Round of Trump Strikes", Iran-backed militia still fires missiles at Israel almost daily and maintains the ability to harass commercial shipping lanes. (WSJ)
• Taiwan authorities said they were investigating whether China's largest chipmaker SMIC illegally lured Taiwanese tech workers under cover of a shell company on the island masquerading as Samoan. (RTRS)
• US Defense Secretary Hegseth reaffirmed the US' ironclad commitment to the Mutual Defense Treaty with the Philippines during his meeting with Philippine President Ferdinand Marcos Jr. (RTRS)

‍

EQUITIES:

• OpenAI's Sam Altman replied "gpu shortage bro" to an X post asking why ChatGPT had updated the 4o model and not 4.5. (X)
• Leading chipmakers and packagers including TSMC and Intel have slowed the pace of their expansions in Japan and Malaysia due to lackluster demand for older chips and tariff uncertainties. (Nikkei)
• Lululemon Athletica expects sales growth to slow this year (+5-7% vs +10% last year), hurt by cautious consumers who are limiting their spending amid an uncertain macroeconomic environment. (WSJ)
• Analysts warn tech giants such as Tesla and Nvidia are already at risk of losing out to China in the race to develop humanoid robots. (CNBC)
• US alcohol brands caught up in middle of Canada-US tariff dispute. Provinces stop stocking wine, beer and spirits in retaliation for Trump’s trade war and threats to annex country. (FT)
• Four Indian state firms are in talks with Chilean miner SQM to acquire a 20% stake in its two lithium projects in Australia for $600 million, in New Delhi's biggest effort to secure supplies of the key EV battery metal. (RTRS)
• China's Huawei is expected to claim triumph over U.S. sanctions at its upcoming annual results, bolstered by its software push, progress in chips and booming smart-driving technology business that has helped it move out of "survival mode". (RTRS)
• Deutsche Bank has extended CEO Christian Sewing's contract, while its deputy and another top executive will depart as part of a management revamp. (RTRS)
• Daimler Truck is forming a partnership with Germany’s ARX Robotics focused on integrating robotics and AI technologies into its military-vehicle platforms. (WSJ)
• Sanofi's Dupixent Approved In Japan For Patients With COPD. (RTRS)
• Swiss building-materials supplier Holcim aims to deliver sales and earnings growth in the period to 2030 as part of its strategy after the planned spinoff of its North American business Amrize. (WSJ)
• BBVA is tweaking its takeover bid for smaller peer Banco de Sabadell to take into account the 2024 final dividend paid by both banks. (WSJ)
• Banco BPM said it is sticking to its offer for asset manager Anima Holding after the ECB issued a negative view on the application of lighter capital rules to the deal. (WSJ)
• SK Hynix is set to mull a more conservative investment stance on its next gen HBM4 amid forecasts the revenue share for HBM3 will be higher still with the upcoming Nvidia Rubin chip, according to Korea press.

‍