Ore 05: 01 GMT: I'm snapped this morning i US tariffs su Canada, Mexico and China and the markets' response was swift and decisive: sell stocks and buy bonds. Even the dollar, which had strengthened at the beginning of the trade war, is no longer so bold, as is the price of crude oil: the fear is now for a global economic slowdown and for the repercussions on theUS economy, especially in light of a series of weak data in recent weeks. They remain supported Euro and Pound, While European leaders they are working out a plan of peace for Ukraine even though Washington seems to be getting closer and closer to Moscow.
Duties and counter-duties
Trump appeared to take a harder line, saying his neighbors to the north and south had “no more room” for negotiations that could further delay the 25% tax, after an earlier month-long stay of enforcement. China has been hit with a tariff doubled to 20%, after the general duties imposed just a month ago. Now Donald Trump's threat to impose tariffs is being highlighted even more also to the EU: Last week he said that 25% taxes were coming on “cars and other things” produced in Europe.
Il Japan is the latest to emerge as a potential tariff target: Trump said yesterday that he had attacked unspecified Japanese “leaders” by phone for “killing their currency.” Confusingly, Japanese Prime Minister Shigeru Ishiba said today that he had not spoken to Trump about foreign exchange policy. “Japan has not adopted a foreign exchange policy to weaken the yen,” Japanese Finance Minister Katsunobu Kato told reporters. “You can see that from our recent currency interventions.” The ministry spent about $100 billion intervening in markets last year not to weaken the yen but to support it, as consumers and businesses have struggled to cope with rising prices, partly driven by the weaker currency. The U.S. president's comments are likely to reinforce traders' view that there is little to be gained by betting on a renewed weakening of the yen.
Some analysts and investors say this could all turn out to be largely a negotiating tactics rather than the new reality of global trade. But for now the market prefers first sell and wait for the situation to become clearer later.
Not only will Trump's trade policies significantly slow down the global growth, but they will also represent a self-inflicted wound at a time when theUS economy appears more vulnerable. Bets continue to rise on a further monetary easing by the Federal Reserve. Traders now expect three quarter-point rate cuts this year, up from two a few days ago and just one cut expected last month.
Now we await the countermeasures on duties, after Ottawa and Beijing have already expressed their opinion in this regard.
Washington's move, according to the latter, is based on the "pretext of concerns about fentanyl", recalling that the People's Republic "is one of the most stringent and scrupulous enforcers of anti-drug policies in the world". Beijing and Washington "have initiated comprehensive and in-depth cooperation on drug control, achieving significant results". However, the United States has "repeatedly shirked its responsibilities and made the same mistakes by using the fentanyl issue as a pretext to impose additional tariffs on Chinese exports", the spokesperson added. The American initiative "ignores the facts, international trade rules and global concerns and exemplifies unilateralism and bullying.
Even the dollar is now losing strength against major currencies
This keeps the dollar subdued, bucking the previous trend when Trump's protectionist policies had boosted the currency. The euro was steady at $1,0484 after rallying 1,1% on Monday. The pound was steady at $1,2697 after advancing 1%, near a month-and-a-half high, as European leaders sought to hammer out a peace plan for Ukraine to present to Washington. canadian dollar and mexican peso have weakened only slightly, while the Australian dollar fell to a one-month low.
However, the Chinese yuan bounced from its lowest level since February 13 in offshore trading, with the People's Bank of China continuing to guide the currency toward strength through the official fixing. The yen, a safe haven currency, is gaining ground and came within a whisker of hitting a five-month high on Tuesday morning.
Oil crude has slumped on fears that an economic slowdown will lead to a drop in demand. Crude oil extended its declines from Monday, when both Brent the WTI fell to their lowest levels since early December. Especially as OPEC+ appears set to move ahead with a planned increase in oil production in April.
Futures on Brent fell 0,9% to $70,97 a barrel, while U.S. crude futures West Texas Intermediate fell 0,7% to $67,87 a barrel.
Il Bitcoin changed hands at $84.220, while theoptimism regarding a US strategic cryptocurrency reserve is rapidly vanished, a day after Trump raised hopes with a social media post naming five tokens, including Bitcoin, as part of the plan. Their fell 0,2% to $2.889 an ounce.
Wall Street in sharp decline yesterday. Nvidia loses almost 9%
On Wall Street, the Dow Jones closed down (-1,48%) and stands at 43.191 points. Along the same lines, the S&P-500 suffered from strong sales and closed the session at 5.850 points. The Nasdaq 100 was depressed (-2,2%); with the same direction, the S&P 100 was significantly worse (-2,04%). Among blue chips, the strongest declines were seen on Dow, which closed the session at -5,38%, Intel, which fell by 4,17%, but above all it is worth mentioning the sales on Nvidia, which has finished trading at -8,81%.
Yesterday's data showed that the US factory prices have jumped to a three-year high and that material deliveries are taking longer, suggesting that import tariffs could soon hinder production.
Asian Stocks All in Red. China Opens Conclave
After Wall Street's plunge on Monday, stocks sold off across Asia. Meanwhile, the US Treasury yields continued to decline during Asian time, with the 10-year yield dropped to its lowest since October at 4,115%, the lowest since October. As the hours passed, Asian stocks were paring back early losses. Nikkei Japan's fell 1,6%.
Hang Seng by Hong Kong fell by 0,4%. The blue chips of the Mainland China decreased by 0,2%. In China The announcement of the tariffs came before the meeting of the National People's Congress of China: The legislative branch of the Chinese parliament will open its annual work tomorrow morning, March 5, at the Great Hall of the People on Tiananmen Square, while the closing is scheduled for the afternoon of March 11. This was announced by Lou Qinjian, spokesperson for the Congress, in the introductory briefing today, adding that the seven days of activity will include a total of three plenary sessions and as many press conferences dedicated to diplomacy, economy and quality of daily life. "This Congress will be the last of the 14th Five-Year Plan," Lou added. Investors are waiting for further economic stimulus, elements that could give a boost to the recent stock market rally.
La Taiwan stock market is weak, Taipei's Taiex index is at -0,4%. TSMC loses 1,3%. The third-party chip manufacturing giant will invest at least 100 billion dollars in the United States. Donald Trump announced it yesterday evening at the White House, underlining that the investment will be in Arizona. “The most powerful chips in the world will be made in the United States,” Trump said, stressing that many companies “want to announce investments, but I don’t have time for all of them.”
Elsewhere, in Asia Pacific. The stock exchange of Alone is slightly down at the end of the session. On parity the BSE Sensex index of Mumbai, . Straits Times Index of Singapore -0,3%.
European stocks seen opening lower, eyeing Ukraine
European stock markets set to open down: The EuroStoxx 50 index future is at -1%. Investors are waiting for enlightenment from political leaders who are trying to work out a Peace Plan for Ukraine
Banco BPM . The CEO of Banco Bpm Giuseppe Castagna believes that the offer on Anima Holding could start in March. “We estimate that the offer on Anima could start in the second half of March”, said the CEO interviewed by Sun 24 Hours. Last week, Banco Bpm shareholders almost unanimously approved the bank's decision to relaunch its offer for Anima, giving the green light to a key operation in the bank's defense strategy against UniCredit's takeover bid.
Generali . Francesco Gaetano Caltagirone also increases in the capital. According to what has been found out MF-Milan Finance, the Roman constructor has reportedly increased its stake in the insurance company from 7 to 8% in the last few hours
Leonardo The French Thales broke records for orders and revenue in 2024, thanks to its defense business, spurred by geopolitical tensions, and the dynamism of its aircraft manufacturing business. Despite sluggish demand for its space business, which is currently undergoing restructuring, the French industrial group achieved its annual financial targets, particularly profitability, and generated a group net profit of 1,42 billion, according to a press release.
Stellantis. Citi and JP Morgan cut their target price. In February, the group recorded a 14,7% drop in car registrations in Italy on an annual basis, compared to the -6,3% recorded by the market, according to data published by the Ministry of Infrastructure and Transport. The President of the European Commission, Ursula von der Leyen said yesterday that the EU executive will present a proposal this month to allow European carmakers to have a lead time three years, instead of one, to achieve the CO2 emission targets, which remain unchanged.
TIM. Vivendi has filed an appeal against a ruling by the Milan court that rejected a previous attempt by the French group to challenge Tim's sale of the NetCo network to the Kkr fund. This was reported Reuters, citing two anonymous sources. Vivendi, which holds a 24% voting stake in the telephone company led by Pietro Labriola, had turned to the Milan court in December 2023 to challenge the decision of Tim's board of directors to sell the network, arguing that it should have been submitted to a vote of shareholders. The sale, worth 22 billion euros, was finalized last July with the support of the Italian government. The Milan court ruled that the French media company had no grounds for legal action, saying it had not exercised its right to call a shareholders' meeting. Vivendi declined to comment.
Unicredit CEO Andrea Orcel met with Prime Minister Giorgia Meloni's chief of staff on Monday afternoon, according to sources familiar with the matter. Also in the afternoon, the first meeting of the technical committee was held at Palazzo Chigi.golden power' on UniCredit's offer for Banco Bpm, the sources added. Orcel also met with the governor of Bank of Italy Fabio Panetta, the newspapers report. According to MF It is unlikely that the government will reject the operation, although it is studying some specific conditions. A merger could cause a significant reduction in loans to SMEs, said the CEO of Banco Bpm Giuseppe Castagna interviewed by Only 24 Hours. Castagna reiterates that today, given the terms, UniCredit's offer is not acceptable, and says that the institute can make a concrete offer that shareholders can evaluate.
Lottomatica closed 2024 with revenues of 2,004 billion (+23% y/y) and an adjusted EBITDA of 706,9 million, +22%. Operating cash flow, on the other hand, was 556,8 million, compared to 469,6 million for the 2023 financial year, while net financial debt at 31 December 2024 was 1,872 billion, equivalent to a financial leverage of 2,4. Adjusted net profit, explains a note, is 254,3 million. A dividend payment of 0,3 euros per ordinary share is proposed. Taking into account the shares issued to date, this is equivalent to a distribution of 75,5 million, equal to a pay-out ratio of 30% of the consolidated Adjusted Net Profit for 2024, in line with the group's dividend distribution policy. The dividend payment date is May 21, 2025 (ex-dividend date May 19).
