MORNING BID EUROPE-Investors itching for progress in US-China talks
With precious little to report out of Sino-U.S. trade talks in London, investors are ready to pounce on almost any sign a thaw in the frigid relationship between the two superpowers is just around the corner.
Stocks in Asia are creeping higher, as are U.S. and European equity futures, while the dollar was also a tad firmer after President Donald Trump said he was getting "good reports" from Monday's meeting with China.
Talks resume at 0900 GMT on Tuesday at Lancaster House and markets want a deal to flesh out details around U.S. tech export controls and those around Chinese rare earths, and of course, where the final average rate of tariffs will settle.
Recent data indicates the trade war is taking a toll on both major economies, which could soon rattle other major economies.
Global investors are also in the market for fresh trade deals, with about a month left before Trump's tariff pause expires.
Also expected out of the UK will be an employment report with investors and the Bank of England keen on how pay growth - a reflection of broader price pressures - fared in April.
Signs of cooling wage growth could be a relief for BoE policymakers who are currently divided on the approach to further monetary policy easing.
Meanwhile, the global healthcare sector was caught in the crossfire as vaccine sceptic U.S. Health Secretary Robert F. Kennedy Jr. fired all members of a U.S. Centers for Disease Control and Prevention panel of vaccine experts.
The move could be a headache for companies such as GSK , Sanofi, AstraZeneca, Moderna and BioNTech as they face longer waits for vaccine approvals.
Advertising firms weren't spared from scrutiny either as the Wall Street Journal reported that the U.S. Federal Trade Commission has sought information from some of the industry's leading firms.
Omnicom, WPP, Dentsu, Interpublic Group and Publicis Groupe were among those asked by the watchdog on whether advertising and advocacy groups violated antitrust laws by coordinating boycotts of certain sites.
Key developments that could influence markets on Tuesday:
- UK May BRC retail sales
- UK April employment data
- U.S. 3-year Treasury note auction
- Reserve Bank of Australia Governance Board meeting
Trying to keep up with the latest tariff news? Our new daily news digest offers a rundown of the top market-moving headlines impacting global trade. Sign up for Tariff Watch here.
This article was generated from an automated news agency feed without modifications to text.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
3 minutes ago
- Mint
‘Trump mocking, insulting India; he has slapped us': How Opposition reacted to 25% tariff
Just after the United States imposed a 25 per cent tariff on Indian products, the Opposition slammed Donald Trump's decision and said he has insulted India. The Aam Aadmi Party (AAP) and the Congress have reacted to the US decision to charge 25 per cent tariff. AAP MP Sanjay Singh said Donald Trump had been mocking India for far too long, suggesting Prime Minister Narendra Modi 'should oppose' and formulate a strategy for India to respond to the 25 per cent tariffs. 'Donald Trump is mocking and insulting India every day. He invites (Pakistan's Chief of Army Staff) Asim Munir and (ISI Director-General) Asim Malik for lunch. Trump even said that he loves Pakistan. I think, the Prime Minister should strongly oppose this move and formulate a strong strategy for India,' he said. Congress MP Mallu Ravi said, 'In our country, we are afraid of taking the name of the US President and agreeing to whatever they (US) say. That's why he (Trump) has imposed a 25 per cent tax on our imports and exports, and has even threatened to impose a penalty. This is not acceptable to India.' 'The government considers Trump a friend, but he has actually slapped us; Indian businessmen will suffer due to this. We will raise all issues in Parliament,' he said. Meanwhile, BJP MP Ashok Chavan said the Commerce Minister was regularly in touch with the US to form a trade deal. 'I dont think President Trump's decision comes after a consensus or a mutual discussion. Our Minister of Commerce was in regular touch with the US administration... Any scope of appeal or discussion must be duly addressed so that India doesn't face any losses,' he said.
Economic Times
3 minutes ago
- Economic Times
25% tariff + penalty: How economists, experts reacted to Trump tariff on India
United States President Donald Trump announced on Wednesday that a 25% tariff will be imposed on goods imported from India starting August 1, with an unspecified penalty for buying Russian weapons and surprise announcement came a day after Indian officials said that a US trade team would visit from August 25 to negotiate a trade deal. The announcement is being seen a pressure tactics to get New Delhi to agree to demands made by the US, which has in recent days got favourable trade deals with major partners like Japan, the UK and the European on the 25% tariff, Harsha Vardhan Agarwal, President, FICCI said, 'While this move is unfortunate and will have a clear bearing on our exports, we hope that this imposition of higher tariffs will be a short-term phenomenon and that a permanent trade deal between the two sides will be finalised soon.''India and U.S. have a long-standing partnership, which is strengthened by our deepening engagement across an array of areas from technology to defence to energy and advance manufacturing. There is a lot our two countries can achieve together, and FICCI is confident that following the detailed deliberations that are currently underway, we will see beneficial outcomes for both countries when the contours of the final trade agreement will emerge,' he added. "While the negotiations seem to have broken down, we don't think the trade-deal haggling between the two nations is over yet. We see it more from the lens of geopolitics than purely economics and see both sides striving to get the deal done, even as the power equations may change a bit in U.S. favour," said Madhavi Arora, Economist at Emkay Global. "Higher tariffs for India compared to countries it competes with, for exports to the U.S., are going to be challenging. However, the expectation is that the trade deal is likely to be finalised shortly and hence the period of applicability of these higher tariffs could be short," said R Anen Banerjee, partner of economic advisory at PWC India. "Despite the unpredictable policy making of the U.S., the market was expecting a tariff deal to work out as longer-term U.S.-India strategic interests are aligned. Markets will hope for a 'TACO' trade if better senses prevail. China is defying U.S./UN sanction on Iran oil, Myanmar and Russia trade and North Korea support. Size and the competitiveness of the economy has its advantages. I hope and pray that this unilateral imposition should accelerate Indian policy making to be growth supportive. Our biggest deterrence continues to remain GDP size and competitiveness," said Nilesh Shah, MD, Kotak Mahindra AMC. "The decision to raise the U.S. tariff to 25% on Indian exports is an unfortunate development, particularly given the strong strategic partnership that has been steadily built between India and the USA in recent years. However, it's important to note that both countries remain positively engaged in active negotiations with the U.S. team expected in India later in August to finalize a comprehensive trade agreement," said Agneshwar Sen, Trade Policy Leader, EY India.
&w=3840&q=100)
Business Standard
6 minutes ago
- Business Standard
Trump slaps 25% tariff on Indian goods: Smartphones, pharma, shrimp hit
Why it matters US President Donald Trump has announced a sweeping 25 per cent tariff on all Indian goods exports to the United States, effective August 1. The move targets India's non-monetary trade barriers and its ties with Russia, including energy and defence cooperation. The decision threatens to disrupt nearly $129 billion in annual bilateral trade and hit critical Indian export sectors ranging from smartphones and pharmaceuticals to shrimp and auto parts. What's the latest The tariff order was posted by Trump on Truth Social on July 30, just days after the fifth round of trade talks concluded in Washington. He hinted at additional penalties related to India's purchases of Russian defence and energy supplies. The sixth round of negotiations is scheduled for late August 2025, with a US delegation visiting New Delhi starting August 25. Numbers game Total India-US bilateral trade in 2024: $129 billion Indian smartphone exports to US in FY25: $24.1 billion (up 55 per cent YoY) Pharma exports to US: $8.7–10.9 billion (approx 31–35 per cent of India's total) Apparel exports to US: $10.8 billion (28.5 per cent of India's textiles exports) Marine exports (total): $7.2 billion | US share: approx $2.4 billion Auto component exports to US: $2.2 billion How Indian smartphone exports are vulnerable While IT and IT-enabled services aren't directly affected, hardware products like smartphones, electronics, and components are within the tariff net. India's PLI-enabled smartphone exports to the US saw a record surge, overtaking petroleum and diamonds in FY25. Apple's iPhones — now increasingly assembled in India for US markets — may see price hikes or supply delays if they fall under the new tariff slab. India has recently overtaken China to become the largest exporter of iPhones to the United States in the second quarter of 2025, marking a pivotal shift in global supply chains. This transformation is directly powered by Apple's strategic move to expand iPhone manufacturing in India as part of its 'China Plus One' strategy amid increasing US–China trade tensions and rising tariffs on Chinese goods A 25 per cent tariff could severely dent that growth, undermining momentum in India's fast-growing tech manufacturing exports. Pharmaceutical sector faces pricing shock India exported over $10 billion in generic drugs and APIs to the US in FY25. If pharma products aren't exempted — as they were in certain EU trade deals — the new tariffs could worsen drug shortages and raise prices in the US healthcare system. US dependence on Indian generics makes this a high-stakes category for both economies. Textiles and apparel under pressure With $10.8 billion in apparel exports to the US in 2024, India is highly dependent on the American market. A 25 per cent tariff, on top of the existing 10–12 per cent rates, would make Indian garments less competitive. US buyers may shift sourcing to Vietnam or Bangladesh, jeopardising order volumes and jobs in India's labour-intensive textile sector. Jewellery exports face margin compression India exported around $12 billion in gems and jewellery in FY25 — with the US accounting for about 30 per cent of that. Since tariffs are already at 27 per cent, the additional 25 per cent surcharge would drastically narrow profit margins and may trigger order cancellations or supplier switching. Auto parts and engineering goods in the firing line India exported $2.2 billion worth of auto parts and components to the US in 2024. Finished vehicle exports remain marginal at $10 million, but parts shipments will now face the full 25 per cent tariff. This may impact India's engineering goods sector, a key driver of manufacturing and Make in India-linked exports. Shrimp and seafood exports take a hit The US is India's largest buyer of shrimp, importing nearly one-third of India's total $7.2 billion marine exports. The tariff move may reduce price competitiveness against Latin American suppliers. This comes after the US criticised India's high MFN tariffs on agricultural goods — cited frequently by the Trump administration as a trade irritant. The bottom line Trump's blanket 25 per cent tariff on Indian goods exports escalates trade tensions at a sensitive time. While some sectors may push for exemptions, the broad sweep of the policy threatens India's export stability — particularly in electronics, pharma, shrimp, and apparel — ahead of critical bilateral trade negotiations in August.
