Latest news with #outlook
8 hours ago
- Business
US, China announce a trade agreement — again. Here's what it means
WASHINGTON -- The United States and China have reached an agreement — again — to deescalate trade tensions. But details are scarce, and the latest pact leaves major issues between the world's two biggest economies unresolved. President Donald Trump said late Thursday that a deal with China had been signed "the other day.'' China's Commerce Ministry confirmed Friday that some type of arrangement had been reached but offered few details about it. Sudden shifts and a lack of clarity have been hallmarks of Trump's trade policy since he returned to the White House determined to overturn a global trading system that he says is unfair to the United States and its workers. He's been engaged for months in a battle with China that has mostly revealed how much pain the two countries can inflict on each other. And he's racing against a July 8 deadline to reach deals with other major U.S. trading partners. The uncertainty over his dealmaking and the cost of the tariffs, which are paid by U.S. importers and usually passed on to consumers, have raised worries about the outlook for the U.S. economy. And although analysts welcomed the apparent easing of tensions with China, they also warned that the issues dividing Washington and Beijing are unlikely to be resolved anytime soon. U.S. Treasury Secretary Scott Bessent said Friday that the Chinese had agreed to make it easier for American firms to acquire Chinese magnets and rare earth minerals critical for manufacturing and microchip production. Beijing had slowed exports of the materials amid a bitter trade dispute with the Trump administration. Without explicitly mentioning U.S. access to rare earths, the Chinese Commerce Ministry said that 'China will, in accordance with the law, review and approve eligible export applications for controlled items. In turn, the United States will lift a series of restrictive measures it had imposed on China.'' The Chinese have complained about U.S. controls on exports of advanced U.S. technology to China. But the ministry statement did not specifically say whether the United States planned to ease or lift those controls. In his interview on Fox Business Network's 'Mornings with Maria,' Bessent mentioned that the United States had earlier imposed 'countermeasures'' against China and 'had held back some vital supplies for them.'' "What we're seeing here is a de-escalation under President Trump's leadership,'' Bessent said, without spelling out what concessions the United States had made or whether they involved America's export controls. Jeff Moon, a trade official in the Obama administration who now runs the China Moon Strategies consultancy, wondered why Trump hadn't disclosed details of the agreement two days after it had been reached. 'Silence regarding the terms suggests that there is less substance to the deal than the Trump Administration implies,″ said Moon, who also served as a diplomat in China. The agreement that emerged Thursday and Friday builds on a "framework'' that Trump announced June 11 after two days of high-level U.S.-China talks in London. Then, he announced, China had agreed to ease restrictions on rare earths. In return, the United States said it would stop seeking to revoke the visas of Chinese students on U.S. college campuses. And last month, after another meeting in Geneva, the two countries had agreed to dramatically reduce massive taxes they'd slapped on each other's products, which had reached as high as 145% against China and 125% against the U.S. Those triple-digit tariffs threatened to effectively end trade between the United States and China and caused a frightening sell-off in financial markets. In Geneva, the two countries agreed to back off and keep talking: America's tariffs went back down to a still-high 30% and China's to 10%. That led to the talks in London earlier this month and to this week's announcement. If nothing else, the two countries are trying to ratchet down tensions after demonstrating how much they can hurt each other. 'The U.S. and China appear to be easing the chokeholds they had on each other's economies through export controls on computer chips and rare earth minerals, respectively,' said Eswar Prasad, professor of trade policy at Cornell University. "This is a positive step but a far cry from signaling prospects of a substantial de-escalation of tariffs and other trade hostilities.'' Trump launched a trade war with China in his first term, imposing tariffs on most Chinese goods in a dispute over China's attempts to supplant U.S. technological supremacy. Trump's trade team charged that China was unfairly subsidizing its own tech companies, forcing U.S. and other foreign companies to hand over sensitive technology in exchange for access to the Chinese market and even engaging outright theft of trade secrets. The squabbling and negotiating of the past few months appear to have done little to resolve Washington's complaints about unfair Chinese trade practices and America's massive trade deficit with China, which came to $262 billion last year. This week's agreement 'includes absolutely nothing related to the U.S.'s concerns regarding China's trade surplus or non-market behavior,'' said Scott Kennedy of the Center for Strategic and International Studies. 'If the two sides can implement these elements of the ceasefire, then they could begin negotiations on issues which generated the initial escalation in tensions in the first place.'' Since returning to the White House in January, Trump has made aggressive use of tariffs. In addition to his levies on China, he has imposed "baseline'' 10% taxes on imports from every country in the world . And he's announced even higher taxes — so-called reciprocal tariffs ranging from 11% to 50% — on countries with which the United States runs a trade deficit. But after financial markets sank on fears of massive disruption to world trade, Trump suspended the reciprocal levies for 90 days to give countries a chance to negotiate reductions in their barriers to U.S. exports. That pause lasts until July 8. On Friday, Bessent told Fox Business Network that the talks could extend beyond the deadline and be 'wrapped up by Labor Day'' Sept. 1 with 10 to 12 of America's most important trading partners. Trump further played down the July 8 deadline at a White House press conference Friday by noting that negotiations are ongoing but that 'we have 200 countries, you could say 200 countries-plus. You can't do that.' Instead of new trade deals, Trump said his administration would in coming days or weeks send out a letter where 'we're just gonna tell them what they have to pay to do business in the United States.'' Separately, Trump took sudden aim at Canada Friday, saying on social media that he's immediately suspending trade talks with that country over its plan to impose a tax on technology firms next Monday. Trump called Canada's digital services tax 'a direct and blatant attack on our country.' The digital services tax will hit companies like Amazon, Google, Meta, Uber and Airbnb with a 3% levy on revenue from Canadian users. It will apply retroactively, leaving U.S. companies with a $2 billion bill due at the end of the month.
Business Insider
a day ago
- Business
- Business Insider
Bitcoin at the Crossroads: FBS Analysts Look at What's Next
FBS, one of the leading global brokers, has released a new market analysis asking the big question: " Has Bitcoin's bull run peaked — or is another major rally still ahead in 2025?". According to the article, Bitcoin is now trading between $106,000 and $110,000. Some traders believe this is just a pause before the final surge, while others think the market may have already reached its high point. FBS analysts say this cycle follows a familiar pattern seen in the past. Historically, Bitcoin often rises strongly about a year after its 'halving' — a regular event that reduces the new coin supply. The last halving happened in April 2024, and Bitcoin has already grown over 600% from its 2022 lows. That growth is similar to what happened in past cycles. 'Bitcoin is holding strong, even during short-term drops,' FBS experts explain. 'This shows demand is high — especially from large investors and new ETFs.' So far in 2025, Bitcoin ETFs in the US have attracted over $5 billion, and now manage more than $130 billion in assets. Many large companies are also buying and holding Bitcoin as part of their long-term plans. However, there are also warnings to watch. Market sentiment is getting very optimistic — a sign that some investors may be acting out of fear of missing out. Leveraged trading is on the rise again, which can lead to big swings in price. Some analysts believe this may signal that the top is near. Global events add more uncertainty. In June, tensions in the Middle East caused Bitcoin to drop suddenly, reminding traders that crypto still reacts to fear and global risks. At the same time, new crypto regulations in the US and Europe could either help Bitcoin grow — or slow it down, depending on how they are applied. Despite these risks, many analysts remain positive. Big banks now expect Bitcoin to reach $200,000 by the end of 2025, driven by strong demand, more investment, and easier monetary policy. 'Bitcoin could still climb higher — especially if the US starts cutting interest rates later this year,' FBS analysts say. 'But it's important for traders to manage risks and stay prepared.' Users can read the full Bitcoin cycle outlook in the latest FBS analysis. About FBS FBS is a global brand that unites several independent brokerage companies under the licenses of FSC (Belize), CySEC (Cyprus), and ASIC (Australia). With 16 years of experience and over 100 international awards, FBS is steadily developing as one of the market's most trusted brokers. Today, FBS serves over 27 000 000 traders and more than 700 000 partners around the globe. Contact FBS
Otago Daily Times
2 days ago
- Business
- Otago Daily Times
Consumer confidence up despite inflation worries
Image: RNZ Consumer confidence is improving but the economic outlook remains soft, with inflation expectations rising to the highest level in more than two years. The ANZ-Roy Morgan Consumer Confidence lifted six points to 98.8 in June, following last month's drop to 92.9. ANZ chief economist Sharon Zollner said a number of key indicators remained in negative territory, including the proportion of households who thought it was a good time to buy a major household appliance, at -7. In addition, annual inflation expectations rose slightly to 4.9 percent - the highest level since April 2023. "A few potential explanations seem possible," she said, including global tariff noise and concerns about energy prices. She said the increase was in line with food price inflation, which was running at 4.4 percent. "Household electricity prices are also rising as higher lines charges are passed on." However, she said a net 20 percent of consumers expected to be better off this time next year. "The economy is recovering. It's just taking a little longer than expected. "Households might be sceptical but domestic inflation is on the retreat, and that should lay the path for the RBNZ [Reserve Bank] to ultimately be able to shore up the economic recovery with a little more monetary easing."
Yahoo
2 days ago
- Business
- Yahoo
Shake Shack Set for Positive Adjusted EBITDA Revisions Through 2026, Oppenheimer Says
Shake Shack (SHAK) is poised for positive revisions to its core earnings through 2026 as its outlook Sign in to access your portfolio
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Business Standard
2 days ago
- Business
- Business Standard
Global trade rebound may fade as export orders lose momentum, warns WTO
Global goods trade saw a notable rise in early 2025, but the outlook for the rest of the year remains subdued, the World Trade Organisation (WTO) said on Thursday. According to the WTO's latest Goods Trade Barometer, the index rose to 103.5 from 102.8 in March, signalling above-trend trade volumes. The increase was largely driven by importers accelerating purchases in anticipation of higher tariffs. However, the WTO cautioned that the momentum may be short-lived. Its forward-looking new export orders index fell to 97.9, indicating that trade growth could slow in the months ahead. The barometer is a composite leading indicator that provides real-time insights into global merchandise trade trends. Values above 100 suggest stronger-than-average growth, while those below 100 imply weakness. The organisation also maintained its forecast of flat merchandise trade growth at just 0.1 per cent for the year. It warned that global trade could contract if the United States reinstates "reciprocal tariffs" or if policy uncertainty spreads more broadly. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
