2025-04-07
[BNN Bloomberg,
Canada]: Stocks clobbered again: The carnage in financial markets continues
today, as investors price in the very real prospect of a global trade war and a
sharp slowdown for the world economy in the wake of U.S. President Donald
Trump’s tariff policy. Europe’s Stoxx 600 index has tumbled five per cent.
Asian markets had their worst day since 2008. S&P 500 equity futures
signalled a three per cent loss overnight, though that decline had been trimmed
to about two per cent by 8 a.m. EDT. Canadian stocks will likely follow the
global trend today, after plunging by more than six per cent last week.
Oil under renewed
pressure: The Canadian market was hit especially hard on Friday due to its
heavy weighting in energy stocks. That sector is likely to be under pressure
again today, as the price of oil is posting a third steep decline — with the
U.S. benchmark falling below US$60 a barrel. Economic worries have been
weighing on oil, and that was compounded this weekend by Saudi Arabia making
some of the biggest cuts in years to its flagship oil price. Saudi Arabia
slashed the selling price of its key Arab Light crude to Asia — the top market
— by the most since 2022, adding supply concerns to a deteriorating demand
outlook. The kingdom’s price move was bigger than traders expected and came
atop a surprise output hike from Saudi-led OPEC+ last week.
Trump remains defiant:
Trump is touting the steep drop in the oil price as a policy win, as he remains
defiant in the wake of the overall market meltdown. In a posting on social
media, Trump said: “Oil prices are down, interest rates are down (the
slow-moving Fed should cut rates!), food prices are down, there is NO
INFLATION, and the long-time abused USA is bringing in Billions of Dollars a
week from the abusing countries on Tariffs that are already in place.”
Dimon warns of ‘disastrous’ impacts: One of the leaders of corporate America is taking issue with Trump’s initiatives. JPMorgan Chase Chief Executive Officer Jamie Dimon is urging a quick resolution to the uncertainties sparked by Trump’s tariffs, and warning against a potentially “disastrous” fragmentation of America’s long-term economic alliances. “The quicker this issue is resolved, the better because some of the negative effects increase cumulatively over time and would be hard to reverse,” Dimon wrote in his annual shareholder letter. In the near term, “we are likely to see inflationary outcomes, not only on imported goods but on domestic prices, as input costs rise, and demand increases on domestic products.”
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2025-04-04
[BNN Bloomberg, Canada]: Markets plunge again: Stock markets around the world are getting hit again after China retaliated against new U.S. tariffs with levies on all American imports. Stock futures tied to the U.S. S&P 500 Index are indicating another drop of about three per cent is on the way. The drop comes as China retaliates against U.S. tariffs with levies of its own, imposing a 34 per cent tariff on all American imports starting April 10. Today’s downward pressure follows a massive drop yesterday, with Canada’s S&P/TSX Composite Index plunging 3.8 per cent, the most since June 2020. U.S. indices fell even more, wiping out US$2.5 trillion in value. Investors will closely watch a speech at 11:30 am ET from U.S. Federal Reserve Chair Jerome Powell, to find out his view of the impact of the Trump tariffs and the stock selloff.
Auto layoffs: For
Canada, the tariff impact focus right now is the auto sector. U.S. President
Trump’s 25 per cent tariffs on foreign vehicles kicked in yesterday. Prime
Minister Mark Carney has responded with plans to impose a 25 per cent
retaliatory duty on some U.S.-made vehicles. The highly integrated North
American auto industry has been thrown into chaos. About 6,000 workers in
Canada’s auto sector have received temporary layoff notices, according to
Unifor.
March job losses: There is fresh evidence Canada’s economy was hurting even before the Trump tariffs took effect. The latest numbers from StatsCan show Canada had a net loss of 32,600 jobs in March – economists had expected a small gain. The unemployment rate rose to 6.7 per cent. It’s the biggest monthly job loss in more than three years. Wholesale and retail trade, culture and recreation, business support services, agriculture and manufacturing led job losses. In the U.S., March payrolls unexpectedly rose by 228,000, but the unemployment rate edged up to 4.2 per cent as more Americans entered the workforce.
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2025-04-03
[BNN Bloomberg,
Canada]: Trump’s tariff plan: U.S. President Donald Trump has disrupted the
global economy, imposing steep import tariffs against most countries, sparking
threats of retaliation and a selloff in markets around the world. Trump
announced he will apply at least a 10 per cent “reciprocal” tariff on all
exporters to the U.S., with even higher duties on some 60 nations, to counter
large trade imbalances with the U.S. That includes some of the country’s
biggest trading partners, such as China — which now faces a tariff of well
above 50 per cent on many goods — as well as the European Union, Japan and
Vietnam. The EU and China re vowing to impose retaliatory measures. Canada and
Mexico will not be subject to the new 10 per cent U.S. tariff – though measures
Trump has already imposed on Canadian and Mexican goods remain intact, and new
ones that touch the automotive sector come into force today.
Canada’s response:
Prime Minister Mark Carney responded to Trump’s announcements late yesterday,
saying: “In a crisis it’s important to come together and it’s essential to act
with purpose and with force, and that’s what we will do.” Carney told reporters
Trump has introduced measures that will change the international trading system
in a fundamental manner but has preserved some major aspects of the Canada-U.S.
trading relationship. He also indicated Canada will respond with
countermeasures, but did not give specifics. Carney said Canada’s response will
come after he meets with provincial premiers today.
Markets plunge:
Meanwhile, global financial markets have been hit by a sweeping selloff after
Trump’s announcement, with U.S. equity futures slumping by more than three per
cent. American companies such as Apple and Nike that rely on overseas
production are under the most pressure, as well as retailers such as Walmart
that sell a large amount of foreign-made goods. The price of oil is down about
five per cent amid fears of a global economic slowdown. The U.S. dollar is
trading lower against most currencies including the loonie, which has surged to
its highest level against the greenback since last December, approaching 71
U.S. cents. BNN Bloomberg will have extensive coverage throughout the day,
including insight from influential market analyst David Rosenberg at 10 a.m.
EDT.
Auto tariffs now in
effect: Trump’s 25 per cent tariff on U.S. auto imports takes effect today, in
a move expected to dramatically increase costs and upend industry supply
chains. Certain auto parts will also be hit by an equivalent levy no later than
May 3 under a plan Trump announced last week. The impact is already being felt
here in Canada – Stellantis will be halting production at its Chrysler factory
in Windsor for two weeks, as the U.S.-European auto giant seeks to adjust to
the new tariff regime.
[Investopedia, USA]: Apple
(AAPL) shares plummeted in extended trading Wednesday after President Trump
unveiled sweeping reciprocal tariffs, including a steep 34% import tax on
China, the country where the iPhone maker manufactures about 90% of its
products.
Not only could
Washington’s tariffs raise the price of the tech giant’s devices imported into
the U.S., but they may also slow sales in China, Apple’s second largest market,
should Beijing impose retaliatory levies on U.S. companies operating in the
country.
Analysts at Morgan
Stanley pointed out that tariffs on iPhones and other devices imported from
China will increase Apple’s annual costs by $8.5 billion, creating a 7% drag on
the iPhone maker’s profit.
As of Wednesday’s close, Apple shares trade down a little over 10% since the start of the year and 14% below their record high set in December, in part over uncertainty surrounding the Trump administration’s trade policies. The stock fell 7% to around $208 in after-hours trading.
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2025-04-02
[BNN Bloomberg,
Canada]: ‘Liberation Day’: The world is waiting for U.S. President Donald
Trump’s announcement today of his so-called reciprocal tariff plan. The event
is scheduled for 4:00 p.m. EDT at the White House Rose Garden. The Trump
administration is still said to be considering multiple options, including a
tiered tariff system with a set of flat rates for countries, as well as a more
customized plan. Under the first option, countries would see their goods face
levies at either a 10 per cent or 20 per cent rate depending on their tariff
and non-tariff barriers on U.S. goods. In any case, the White House says the
tariffs will take effect immediately after they are announced. BNN Bloomberg
will have extensive live coverage of the tariff situation today – including the
announcement itself, as well as previews, analysis, and live reports from
Canada and the U.S.
Canada’s response:
Once the Trump tariff plan is announced, Canadians will be looking for our
federal government’s response. Prime Minister Mark Carney has vowed retaliatory
measures if Canada is hit with additional tariffs. The Globe and Mail is
reporting Canada won’t impose retaliatory tariffs on most U.S. food and other
basic necessities that could drive up the cost of living for Canadians, or on
components that are essential to avoiding job losses in key sectors of the
economy. Carney is expected to meet virtually this afternoon with his
Canada-U.S. relations council and then convene a cabinet committee after Trump’s
speech.
U.S. targets Quebec,
Alberta: Meanwhile, the U.S. is targeting Quebec’s French-language-first law as
a barrier to trade, as well as Alberta’s electricity import practices. A new
report on foreign trade barriers by the Office of the U.S. Trade Representative
says that businesses have “expressed concerns” about the impact Bill 96 will
have on their trademarks for products.
The requirements to translate certain trademarks into French is likely
to increase costs. The report also alleges the Alberta Electric System Operator
has been giving preferential market access to electricity generated in Alberta
over imports from Montana.
U.S. Senate to vote on Canada tariffs: Trump is also dealing with opposition to his tariff plans from within Congress. In a social media posting overnight, Trump demanded Republicans in the Senate oppose a bill which, if passed, could derail sweeping 25 per cent tariffs on Canadian goods. The bill calls for the termination of the national emergency Trump declared on Feb. 1, which led to 25 per cent tariffs on most imports from Canada – though some of those tariffs were later repealed. The Senate is expected to vote on the bill today.
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2025-04-01
[BNN Bloomberg,
Canada]: Trump tariff watch: Stock markets are under pressure again this morning,
as investors await details of U.S. President Donald Trump’s so-called
reciprocal tariffs and other levies on what he has labelled “Liberation
Day." The announcement is expected at 3 p.m. EDT on Wednesday at an event
in the White House Rose Garden. White House Press Secretary Karoline Leavitt
says that new tariffs will be imposed by country rather than by sector. There
are reports a “reciprocal” tariff level of around 20 per cent will be imposed
on most U.S. imports. BNN Bloomberg will have extensive live coverage of the
tariff announcements tomorrow – including previews, analysis, and live reports
from Canada and the U.S.
Carney’s housing
plan: There have been more developments in Canada’s federal election campaign.
Liberal leader Mark Carney says a reelected Liberal government would create a
new entity called “Build Canada Homes,” which would act as a developer to build
affordable housing, including on public lands. The entity would also provide
more than $25 billion in financing to prefabricated-home builders in Canada. It
would offer an additional $10 billion in low- cost financing and capital to
affordable-home builders. Meanwhile, Conservative leader Pierre Poilievre says
he would cut back on foreign aid and cap government spending to pay for his capital
gains tax deferral measure that would cost $10.5 billion over two years.
Speaking to BNN Bloomberg, Poilievre was asked what federal programs would be
cut for his campaign pledge, which would allow the deferral of capital gains
tax if reinvested in Canada. “We will get rid of bureaucracy, consultants,
handouts to corporate insiders that ship jobs overseas. We will also cut back
on foreign aid. We’ll bring in dollar-for-dollar law that caps government
spending, requiring we find equal savings for every new expenditure,” Poilievre
said. You can watch the full interview on BNNBloomberg.ca.
Gold keeps shining:
The price of gold has hit a record high, as uncertainty about Trump’s trade
tariffs heightened concerns about the global economy and fanned haven demand.
Bullion is trading at around US$3,150 an ounce, on pace for a fourth day of
gains. The precious metal has been one of the strongest performing commodities
this year, posting its best quarter since 1986 in the opening three months. The
ascent has been fuelled by consistent central bank buying, plus a rising tide
of haven demand amid intensifying geopolitical and macro uncertainties.
Canada-U.S. travel
drops: Air Canada says demand for flights between Canadian and U.S. cities is
weak for the spring and summer months, as Canadians respond to the trade war by
avoiding trips south. As Bloomberg’s Mathieu Dion reports, bookings for
transborder flights were down 10 per cent for the April-to-September period
compared with the same period last year as of mid-March, according to a
presentation at the company’s annual meeting. And it’s not just Air Canada.
WestJet has given similar indications, and yesterday Porter Airlines said it
has altered its summer schedule so that domestic routes are 80 per cent of its
total capacity, up from 75 per cent in its original plan.
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