La trade war with the help of duties it moves to Asia. After the truce signed yesterday first between the US and Mexico and then between the US and Canada, now It's China that goes on the counterattack and launch a package of measures targeting raw materials, equipment and automobiles in response to the 10% tariffs on all made-in-China imports imposed by US President Donald Trump.
Tariffs: China's countermove
After the additional 10% duties decided by the US president on imports of products made in China came into force at midnight on Tuesday, Beijing responded with a series of measures that, starting from February 10, will affect US coal and liquefied natural gas with 15% rates. Additional duties of 10% will be imposed on oil, agricultural machinery, large-engine vehicles and pick-ups Americans.
The American duties, motivated by "problems such as fentanyl", are the result of a "unilateral imposition of tariffs by the United States" that "seriously violates the rules of the World Trade Organization (WTO)": the move "not only does not help to solve its own problems, but It also disrupts normal economic cooperation and trade between China and the United States,” the Ministry of Finance said in a statement. China also said it had submitted a complaint to the World Trade Organization (WTO) “to defend its legitimate rights and interests,” the Commerce Department said in a statement, accusing the United States’ actions of being “malicious in nature.”
Finally, the Ministry of Commerce and the General Administration of Customs of China announced the crackdown on export controls “of articles relating to tungsten, tellurium, bismuth, molybdenum and indium” with immediate effect “in order to safeguard national security and interests and to comply with international obligations such as non-proliferation”.
Beijing launches investigation into Google
China has started an investigation against Google, “suspected of having violated China's Anti-Monopoly Laws”. The proceeding was opened by the State Administration for Market Regulation, Beijing's Antitrust "in accordance with the regulations". The move has more of a symbolic than effective significance, since the activities of the US giant are banned from the People's Republic.
The Truce with Mexico and Canada
Meantime tensions with Mexico and Canada ease. Late yesterday afternoon, US President Donald Trump 25% tariffs suspended for a month imposed on the two countries. The tariffs were supposed to go into effect today, but the parties gave themselves 30 days to negotiate an agreement. In exchange, Mexican President Claudia Sheinbaum pledged to Strengthen law enforcement at the border with the United States to stop the flow of drugs, while Washington has promised to counter the trafficking of high-powered weapons headed to Mexico.
As regards the Canada, Prime Minister Justin Trudeau, after two phone calls with the White House tenant, said that the country will implement new technologies and send personnel along the border with the United States to counter the flow of fentanyl, thanks to a $1,3 billion plan. 10 more troops are expected, the appointment of an "anti-fentanyl czar" and the launch of a joint US-Canada task force to fight drug traffickers - to be classified as "terrorists" -, organized crime and money laundering.
Stock Market: Positive Start for Europe, Down Oil and Gas
The trade war affects the performance of Asian bags which are proceeding in contrast, the yuan is falling. After yesterday's deep red, then reduced following the announcement of the truce with Canada and Mexico, the European stock exchanges opened slightly higher (Milan +0,11%), with the Eurostoxx50 at +0,11%, despite the possible 10% tariffs coming to the old continent.
The prices of thegold with the ingot for immediate delivery changing hands at 2813 dollars per ounce, close to the historical records of the last few days (-0,07%). On the other hand, the futures with expiry in April are giving way, changing hands at 2842 dollars per ounce (-0,57%).
Today, after Beijing's reactions to Donald Trump's tariff policy, the prices of Petroleum are down. The WTI crude contract is down 1,57% at $72,01 a barrel. Brent is down 0,90% at $75,28 a barrel. The price of gas falls below 53 euros per megawatt hour. TTF contracts in Amsterdam are down 1,6% at 52,92 euros.
At Piazza Affari, focus on Generali and Stellantis
In Piazza Affari all eyes are still on Generali which this morning, through a note, reiterated that the joint venture with Natixis will be controlled equally and shared by the two financial institutions, each of which will hold 50%, operating with a joint governance structure and according to equal criteria of representation and control.
After yesterday's collapse, attention remains high on Stellantis, after the group's car registrations in Italy fell by around 16% in January on an annual basis, compared to a 5,9% market decline. The carmaker's market share rose to 31% from 23,2% in December.
The board of directors of Intesa Sanpaolo and Ferrari, called to examine the 2024 budget. Finally, the CEO of Ferragamo, Marco Gobbetti, announced that he has reached a consensual agreement to leave the company after the approval of the 2024 budget, next March 6.
In the other squares it is worth mentioning the UBS accounts, which reported net income of $5,08 billion in fiscal 2024, compared to $27,3 billion in fiscal 2023, which included special items for the Credit Suisse acquisition, while revenues rose from $40,8 billion to $48,6 billion. It beat expectations BNP Paribas which in 2024 recorded a net profit of 11,68 billion euros, up 4,1%, on revenues that grew at the same rate (+4,1%) to 48,83 billion euros, driven above all by the performance of corporate and investment banking activities (+8,4% on the year and +20,1% in the fourth quarter compared to the third). Gross operating profit rose 7,4% to 18,6 billion.
