US stock futures fall as tariff decision day approaches
US markets were closed on Friday in observance of July 4 Independence Day celebrations. Both the S&P 500 and Nasdaq Composite closed at record highs on Thursday. The Dow had also rallied on Thursday.
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SBS Australia
29 minutes ago
- SBS Australia
EU pledges unity and warns of countermeasures after Trump imposes further tariffs
Mexico and the EU are still reeling from Donald Trump's surprise announcement of a 30 per cent tariff on the two major United States trading partners over the weekend. The announcement, made in copies of letters posted on Trump's social media, came after weeks of negotiations failed to reach comprehensive trade deals. EU trade ministers have met in Brussels to discuss their response, pledging unity within the bloc, and warning of countermeasures if negotiations with the US ultimately fail. Danish Minister of Foreign Affairs Lars Lokke Rasmussen has called the tariffs unacceptable and unjustified, but stresses negotiations to reach a deal remain the EU's priority. "We do not want a trade war with the US we want to avoid it and we had, I think many of us, want to thank the Commissioner for being very transparent in his negotiations with the U.S. team. The clear impression that we were very, very close in agreement in principle. Unfortunately, it wasn't possible due to this presidential letter, but it is still our major vision that we should reach an agreement." However, he warns the bloc will be prepared with countermeasures in the event that talks break down. "But we also want to send a clear signal that it must be a fair deal for everybody, and if that's not possible to reach, then we will leave out no options, and we know very well that we have a toolbox with a lot of tools." European Trade Commissioner Maros Sefcovic says the 30 per cent tariff would make it almost impossible to continue trading as before, with significant consequences for supply chains, and says the EU will do everything it can to ensure a different outcome. He says while he is hopeful talks will be successful, the new tariff threat has also strengthened the bloc's commitment to building internal trade agreements to protect EU interests. "We are very obviously also discussing what we can do to trade more with each other. That was a very clear message from the trade ministers today. Work as hard as possible on new market access, use the existing free trading agreements which are there, and we happen to have the free trade agreements now with all of these major trading partners and we intend to use them to the maximum.' President Trump says he's open to discussions with the EU and other trading partners before higher tariffs kick in on August 1. 'No, we're going to be talking to people. We have, you know, I watched the show this morning, they were talking about 'Well when is he's going to make the deal?' The deals are already made. The letters are the deals. The deals are made. There are no deals to make. They would like to do a different kind of a deal and we're always open to talk. We are open to talk, including to Europe. In fact, they're coming over, they'd like to talk.' In his letter to Mexico's leader, Mr Trump said the country has been helpful in stemming the flow of undocumented migrants and drugs into the United States, but said more is needed to stop America from turning into what he calls a "Narco-Trafficking Playground." Mexican President Claudia Sheinbaum says she still expects an agreement to be reached before the hefty tariffs take effect. Ms Sheinbaum says Mexico is still working to accommodate President Trump's demands, and to find compromises that also work in Mexico's interests. "We have a working group and we expect to reach an agreement. That is our approach. Issues related to fentanyl and security are also on the agenda, and as for that, progress has been made towards an agreement, always within the framework of respect for our sovereignty." But international trade expert Jacob Kirkegaard says he's less hopeful about an agreement being reached between the EU and the US. "What it shows is that Donald Trump thinks he can maybe get a deal by threatening to escalate. But I have to think, I think it will backfire. I think what he has signalled to the EU is that all the efforts that the European Commission has made to try to accommodate, try to negotiate a deal, meant nothing for Trump." These threats to the EU and Mexico the latest in the string of trade levies Trump has imposed across the globe in recent weeks. They include threats to impose 50 per cent tariffs on imports from Brazil, 25 per cent tariffs against Japan and South Korea, and 35 percent tariffs on goods from Canada. Mr Kirkegaard says for the EU and the US, retaliation and escalation is looking increasingly likely. "The EU really has no other choice. If there is no deal by October, sorry, by August 1, which I think is less likely now, then we're in a trade war and we will have to see where it ends."
Sky News AU
2 hours ago
- Sky News AU
Renewable targets dealt fresh blow as major Victorian offshore windfarm abandoned after energy giant failed to find buyer
A significant Victorian offshore wind project has been scrapped after US-backed energy giant BlueFloat confirmed it had failed to find a buyer. The company was reportedly mulling the sale of its Gippsland project off the Victorian coast in early July, with the development considered essential for meeting state and federal emission reduction deadlines. BlueFloat Energy acquired a feasibility license late last year to construct the Victorian offshore wind facility, and further secured a preliminary development license to build an offshore wind complex in New South Wales off the Illawarra coast. However, industry insiders told The Australian on Tuesday that after weeks of attempting to lock down a buyer, BlueFloat had failed in arranging the sale of the embattled development. Victoria, which stands as one of Australia's most fossil fuel dependent states has some of the most stringent renewable energy targets in the nation, and aims to reach 95 per cent clean energy generation by 2035. The dumping of the flagship Victorian facility is one of the first Australian casualties of the increasingly beleaguered offshore wind sector, with US President Donald Trump dampening global investment by tearing up mammoth subsidies to the industry. The sector has also faced lengthening completion timelines, conflicting state and federal regulation and a sharp downturn in private investment despite exorbitant government funding packages. Energy experts have also raised alarm at the concerning lack of transmission infrastructure to support offshore wind, paired with declining domestic manufacturing capabilities and persistent labour shortages. Victoria, unlike other states, has placed offshore wind at the heart of its decarbonisation strategy and set a bold target of producing nine gigawatts of offshore wind capacity by 2040 – which the state government claims is enough to power more than 6.5 million homes. The company is reportedly looking to exit the Australian market entirely, which would threaten its NSW South Pacific project in Illawarra. Sources close to the company said BlueFloat remained committed to finding a potential buyer for the NSW facility, despite the development relying on technology to float turbines - which is both risky and costly. The NSW South Pacific Project also has numerous local competitors, unlike Victoria. A company spokesperson told the ABC that 'BlueFloat continues to investigate funding options for its Australian projects.' The discontinuation of the Gippsland Dawn precinct is expected to raise alarm bells about the viability of offshore wind at federal and state levels, with both Prime Minister Anthony Albanese and Victorian Premier Jacinta Allan touting the technology as one of the most crucial elements to Australia's energy transition. However, BlueFloat is not the only global energy consortium facing mounting difficulties in Australia with Norwegian energy firm Equinor quietly dropping its plan to construct a wind farm in the Bass Strait off the north coast of Tasmania. Equinor is also yet to formally accept an offshore wind development licence in its last remaining Australian project off the coast of Newcastle, NSW. Victorian Energy Minister Lily D'Ambrosio has repeatedly said the Victorian government remains committed to overseeing an expansion of offshore wind projects despite the raft of headwinds facing the industry. Offshore wind is considered to be far more capital intensive and substantially less structurally stable than onshore wind generation.
The Advertiser
2 hours ago
- The Advertiser
China's Q2 GDP growth of 5.2 per cent tops forecast
China's economy has grown at a slightly faster pace than expected in the second quarter, showing resilience in the face of US tariffs, though analysts warn of intensifying headwinds that will ramp up pressure on policymakers to roll out more stimulus. The world's number two economy has so far avoided a sharp slowdown in part due to a fragile US-China trade truce and policy support, but markets are bracing for a weaker second half as exports lose momentum, prices continue to fall, and consumer confidence remains low. Data on Tuesday showed China's gross domestic product (GDP) grew 5.2 per cent in the April-June quarter from a year earlier, slowing from 5.4 per cent in the first quarter, but just ahead of analysts' expectations in a Reuters poll for a rise of 5.1 per cent. "China achieved growth above the official target of five per cent in Q2 partly because of front loading of exports," said Zhiwei Zhang, chief economist at Pinpoint Asset Management. "The above target growth in Q1 and Q2 give the government room to tolerate some slowdown in the second half of the year." On a quarterly basis, GDP grew 1.1 per cent in April-June, the National Bureau of Statistics data showed, compared with a forecast 0.9 per cent increase and a 1.2 per cent gain in the previous quarter. Investors are closely watching for signs of fresh stimulus at the upcoming Politburo meeting due in late July, which is likely to shape economic policy for the remainder of the year. Beijing has ramped up infrastructure spending and consumer subsidies, alongside steady monetary easing. In May, the central bank cut interest rates and injected liquidity as part of broader efforts to cushion the economy from US President Donald Trump's trade tariffs. Further monetary easing is expected in the coming months, while some analysts believe the government could ramp up deficit spending if growth slows sharply. But China observers and analysts say stimulus alone may not be enough to tackle entrenched deflationary pressures, with producer prices in June falling at their fastest pace in nearly two years. Data on Monday showed China's exports regained some momentum in June while imports rebounded, as factories rushed out shipments to capitalise on a fragile tariff truce between Beijing and Washington ahead of a looming August deadline. China is aiming for full-year growth of around five per cent. The latest Reuters poll projected GDP growth to slow to 4.5 per cent in the third quarter and 4.0 per cent in the fourth, underscoring mounting economic headwinds as US President Donald Trump's global trade war leaves Beijing with the tough task of getting households to spend more at a time of uncertainty. June activity data also released on Tuesday painted a mixed picture - industrial output grew 6.8 per cent year-on-year in June, quickening from the 5.8 per cent pace in May and beating forecasts, but retail sales growth slowed down. Fixed-asset investment grew 2.8 per cent in the first six months from a year earlier, slowing from 3.7 per cent in January-May and missing analysts' forecast of 3.6 per cent. China's economy has grown at a slightly faster pace than expected in the second quarter, showing resilience in the face of US tariffs, though analysts warn of intensifying headwinds that will ramp up pressure on policymakers to roll out more stimulus. The world's number two economy has so far avoided a sharp slowdown in part due to a fragile US-China trade truce and policy support, but markets are bracing for a weaker second half as exports lose momentum, prices continue to fall, and consumer confidence remains low. Data on Tuesday showed China's gross domestic product (GDP) grew 5.2 per cent in the April-June quarter from a year earlier, slowing from 5.4 per cent in the first quarter, but just ahead of analysts' expectations in a Reuters poll for a rise of 5.1 per cent. "China achieved growth above the official target of five per cent in Q2 partly because of front loading of exports," said Zhiwei Zhang, chief economist at Pinpoint Asset Management. "The above target growth in Q1 and Q2 give the government room to tolerate some slowdown in the second half of the year." On a quarterly basis, GDP grew 1.1 per cent in April-June, the National Bureau of Statistics data showed, compared with a forecast 0.9 per cent increase and a 1.2 per cent gain in the previous quarter. Investors are closely watching for signs of fresh stimulus at the upcoming Politburo meeting due in late July, which is likely to shape economic policy for the remainder of the year. Beijing has ramped up infrastructure spending and consumer subsidies, alongside steady monetary easing. In May, the central bank cut interest rates and injected liquidity as part of broader efforts to cushion the economy from US President Donald Trump's trade tariffs. Further monetary easing is expected in the coming months, while some analysts believe the government could ramp up deficit spending if growth slows sharply. But China observers and analysts say stimulus alone may not be enough to tackle entrenched deflationary pressures, with producer prices in June falling at their fastest pace in nearly two years. Data on Monday showed China's exports regained some momentum in June while imports rebounded, as factories rushed out shipments to capitalise on a fragile tariff truce between Beijing and Washington ahead of a looming August deadline. China is aiming for full-year growth of around five per cent. The latest Reuters poll projected GDP growth to slow to 4.5 per cent in the third quarter and 4.0 per cent in the fourth, underscoring mounting economic headwinds as US President Donald Trump's global trade war leaves Beijing with the tough task of getting households to spend more at a time of uncertainty. June activity data also released on Tuesday painted a mixed picture - industrial output grew 6.8 per cent year-on-year in June, quickening from the 5.8 per cent pace in May and beating forecasts, but retail sales growth slowed down. Fixed-asset investment grew 2.8 per cent in the first six months from a year earlier, slowing from 3.7 per cent in January-May and missing analysts' forecast of 3.6 per cent. China's economy has grown at a slightly faster pace than expected in the second quarter, showing resilience in the face of US tariffs, though analysts warn of intensifying headwinds that will ramp up pressure on policymakers to roll out more stimulus. The world's number two economy has so far avoided a sharp slowdown in part due to a fragile US-China trade truce and policy support, but markets are bracing for a weaker second half as exports lose momentum, prices continue to fall, and consumer confidence remains low. Data on Tuesday showed China's gross domestic product (GDP) grew 5.2 per cent in the April-June quarter from a year earlier, slowing from 5.4 per cent in the first quarter, but just ahead of analysts' expectations in a Reuters poll for a rise of 5.1 per cent. "China achieved growth above the official target of five per cent in Q2 partly because of front loading of exports," said Zhiwei Zhang, chief economist at Pinpoint Asset Management. "The above target growth in Q1 and Q2 give the government room to tolerate some slowdown in the second half of the year." On a quarterly basis, GDP grew 1.1 per cent in April-June, the National Bureau of Statistics data showed, compared with a forecast 0.9 per cent increase and a 1.2 per cent gain in the previous quarter. Investors are closely watching for signs of fresh stimulus at the upcoming Politburo meeting due in late July, which is likely to shape economic policy for the remainder of the year. Beijing has ramped up infrastructure spending and consumer subsidies, alongside steady monetary easing. In May, the central bank cut interest rates and injected liquidity as part of broader efforts to cushion the economy from US President Donald Trump's trade tariffs. Further monetary easing is expected in the coming months, while some analysts believe the government could ramp up deficit spending if growth slows sharply. But China observers and analysts say stimulus alone may not be enough to tackle entrenched deflationary pressures, with producer prices in June falling at their fastest pace in nearly two years. Data on Monday showed China's exports regained some momentum in June while imports rebounded, as factories rushed out shipments to capitalise on a fragile tariff truce between Beijing and Washington ahead of a looming August deadline. China is aiming for full-year growth of around five per cent. The latest Reuters poll projected GDP growth to slow to 4.5 per cent in the third quarter and 4.0 per cent in the fourth, underscoring mounting economic headwinds as US President Donald Trump's global trade war leaves Beijing with the tough task of getting households to spend more at a time of uncertainty. June activity data also released on Tuesday painted a mixed picture - industrial output grew 6.8 per cent year-on-year in June, quickening from the 5.8 per cent pace in May and beating forecasts, but retail sales growth slowed down. Fixed-asset investment grew 2.8 per cent in the first six months from a year earlier, slowing from 3.7 per cent in January-May and missing analysts' forecast of 3.6 per cent. China's economy has grown at a slightly faster pace than expected in the second quarter, showing resilience in the face of US tariffs, though analysts warn of intensifying headwinds that will ramp up pressure on policymakers to roll out more stimulus. The world's number two economy has so far avoided a sharp slowdown in part due to a fragile US-China trade truce and policy support, but markets are bracing for a weaker second half as exports lose momentum, prices continue to fall, and consumer confidence remains low. Data on Tuesday showed China's gross domestic product (GDP) grew 5.2 per cent in the April-June quarter from a year earlier, slowing from 5.4 per cent in the first quarter, but just ahead of analysts' expectations in a Reuters poll for a rise of 5.1 per cent. "China achieved growth above the official target of five per cent in Q2 partly because of front loading of exports," said Zhiwei Zhang, chief economist at Pinpoint Asset Management. "The above target growth in Q1 and Q2 give the government room to tolerate some slowdown in the second half of the year." On a quarterly basis, GDP grew 1.1 per cent in April-June, the National Bureau of Statistics data showed, compared with a forecast 0.9 per cent increase and a 1.2 per cent gain in the previous quarter. Investors are closely watching for signs of fresh stimulus at the upcoming Politburo meeting due in late July, which is likely to shape economic policy for the remainder of the year. Beijing has ramped up infrastructure spending and consumer subsidies, alongside steady monetary easing. In May, the central bank cut interest rates and injected liquidity as part of broader efforts to cushion the economy from US President Donald Trump's trade tariffs. Further monetary easing is expected in the coming months, while some analysts believe the government could ramp up deficit spending if growth slows sharply. But China observers and analysts say stimulus alone may not be enough to tackle entrenched deflationary pressures, with producer prices in June falling at their fastest pace in nearly two years. Data on Monday showed China's exports regained some momentum in June while imports rebounded, as factories rushed out shipments to capitalise on a fragile tariff truce between Beijing and Washington ahead of a looming August deadline. China is aiming for full-year growth of around five per cent. The latest Reuters poll projected GDP growth to slow to 4.5 per cent in the third quarter and 4.0 per cent in the fourth, underscoring mounting economic headwinds as US President Donald Trump's global trade war leaves Beijing with the tough task of getting households to spend more at a time of uncertainty. June activity data also released on Tuesday painted a mixed picture - industrial output grew 6.8 per cent year-on-year in June, quickening from the 5.8 per cent pace in May and beating forecasts, but retail sales growth slowed down. Fixed-asset investment grew 2.8 per cent in the first six months from a year earlier, slowing from 3.7 per cent in January-May and missing analysts' forecast of 3.6 per cent.
