The Overnight News Roundup - April 8

Apr 08, 2025

PiQ and Zack Eiseman provide you with a consolidated roundup of the overnight news that matters most to markets.

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TRADE:

US Treasury Secretary Bessent flew to Florida Sunday to encourage President Trump to focus his message on negotiating favorable trade deals — or risk the stock market cratering further. Bessent is the first known adviser to try to urge the president to alter his rhetoric on trade — albeit privately and gently. (Politico)
Elon Musk made direct yet unsuccessful appeals to Trump to reverse tariffs over the past weekend. (WaPo)
Trump said at a White House press conference the EU will have to commit to buying $350 billion of American energy, the amount of the trade deficit, to get a reprieve from tariffs, dismissing Brussels' offer of "zero-for-zero" tariffs on cars and industrial goods. (Politico)
Trump suggested the EU was further along in getting their tariffs lowered, "I mean as badly as they've treated us, they've brought their car tariffs essentially off." But he also indicated that he wanted the EU to reduce its standards to allow more US goods to enter its market, referring to "non-monetary tariffs." (Politico)
Asked whether his global tariffs were a strong-arm negotiation tactic or permanent, Trump said, "There can be permanent tariffs and there can also be negotiations, because there are things we need beyond tariffs." (Politico)
Trump dismissed fears that tariffs will drive traditional US trading partners to do business with China instead of the U.S. “I’m not worried about it,” Trump said, speaking to reporters in the Oval Office. (WSJ)
Bessent said on Fox Business News that Japan is likely to be prioritized in trade talks with the Trump administration, “Just because they came forward very quickly”. Bessent did not give a timeline when asked. “It is my hope that through good negotiations, all we will do is see levels come down,” he said. “But that's going to depend on the other countries.” (FBN)
Japan's Economy Minister Akazawa has been appointed as trade negotiator with the US. PM Ishiba is also considering another visit to the US for discussions with Trump "at the most appropriate timing", with progress in ministerial-level talks being a key consideration. (RTRS)
Japan's Finance Minister Kato said task forces have been set up at the Finance Ministry and Financial Services Agency to deal with issues over US tariffs. Said Japan and the US have agreed to communicate on forex at the ministry level, whilst saying all options are possible to deal with US tariffs. (RTRS))
China's Ministry of Commerce said that if the US escalates tariffs, “China will resolutely take countermeasures to safeguard its own rights and interests.” It said, “The U.S. threat to escalate tariffs on China is a mistake on top of a mistake, which once again exposes the U.S.’s blackmail nature... If the U.S. insists on its own way, China will fight to the end.” (WSJ)
Chinese sources suggest China has prepared at least six major countermeasures: 1. Significant tariff increases on US ag products. 2. Banning import of US poultry into China. 3. Suspending Sino-US cooperation on fentanyl-related issues. 4. Countermeasures in the service trade sector. 5. Banning the import of US films into China. 6. Investigating the IP benefits of US companies operating in China. (Xinhua affiliated WeChat accounts via Sino_Market)
Israeli PM Netanyahu said Monday that he wants to completely erase the trade deficit between the US and Israel. (WSJ)
Vietnam will buy more American goods, including defence and security products, and has asked for a 45-day delay in the imposition of U.S. tariffs, PM Chinh said in a statement issued late on Monday. (RTRS)
A top South Korean trade official said the government is reviewing multiple packages, such as energy imports, to present to the Trump administration as it seeks to reduce a trade surplus with the US in a bid to negotiate a lower tariff rate. (BBG)
Indonesia will send a team including veteran Finance Minister Sri Mulyani Indrawati to Washington for trade talks next week, part of the nation’s initial response to being among the hardest hit economies globally by higher US tariffs. (BBG)

MACRO:

Fed's Goolsbee (voter) warned on CNN that further escalation in the trade war "might send us back to the kind of conditions that we saw in '21 and '22 when inflation was raging out of control". He said "there is not a generic answer to what the Fed should do" in response to a stagflationary environment. (CNN)
Several Chinese state holding companies vowed on Tuesday to increase share investment while a slew of listed companies announced share buybacks as Beijing stepped up efforts to stabilise the stock market. (RTRS)
China's financial regulator plans to raise limits for insurance funds' investment in the stock market. It will raise the upper limit of the equity asset allocation ratio of some insurers by about 5%, the NFRA said in a statement on Tuesday. (RTRS)
China's yuan fell to its weakest level since 2023 on Tuesday after the central bank slightly loosened its grip on the currency in what analysts said was an attempt to counteract the blow to exports from an intensifying global trade war. (RTRS)
Traders are rapidly pricing in faster easing in China as trade tensions with the US escalated. (BBG)
China’s state planner held a meeting with private domestic companies on Tuesday to discuss the economy. The planner heard measures and suggestions to deal with additional US tariffs from companies including Trina Solar, Didi, and Goertek. (RTRS)
Japan's government is set to submit a nominee to parliament on Thursday to fill a seat on the central bank's board that opens up at the end of June as Toyoaki Nakamura's five-year term ends. (RTRS)
Japan's bankruptcy filings in fiscal 2024 totalled 10,144, the most in 11 years, credit research firm Tokyo Shoko Research said on Tuesday, amid rising uncertainties around the Bank of Japan's rate hike schedule. (RTRS)
Japan’s government isn’t considering compiling an extra budget to help mitigate the potential impacts from US tariffs, Finance Minsiter Kato said, downplaying recent reports. (BBG)
Incoming German Chancellor Merz is facing slumping approval ratings and a barrage of criticism from parts of his conservative base who believe he is yielding to the will of the center-left Social Democratic Party (SPD) during coalition talks. (Politico)
Bloomberg article titled "The World Suddenly Has a Plausible Alternative to US Treasuries" points towards Bunds and the potential for a flood of issuance. (BBG)
Deutsche Bank is the first bank to forecast the RBA to cut rates by an outsized 50bps next month, citing the impact on business and consumer confidence and domestic economic growth from Washington’s new tariff regime. (BBG)
Australia’s consumer confidence tumbled in April to a six-month low as Trump’s tariffs and an accompanying slump in stock markets hit households hard, according to a Westpac Banking survey. (BBG)
Christian Hawkesby has been appointed as Governor of the RBNZ for a six-month term as the search for a permanent leader continues, Finance Minister Nicola Willis said on Tuesday. (RTRS)
New Zealand said its recovery from recession has been made more difficult by tariffs. Finance Minister Willis said while New Zealand has been hit with a 10% tariff on its exports to the US, the main risk is that its other trading partners, some of whom face higher tariffs, are adversely affected. (BBG)
Hungary’s inflation rate dropped more than forecast in March, the first decrease since September as a stronger forint helped curb energy prices. (BBG)
Mexico’s government is talking to the private sector about expanding fracking as Trump’s trade threats heighten fears over the country’s dependence on US gas. (FT)
Singapore will set up a taskforce to address economic uncertainties amid quickly escalating global trade tensions that are likely to undermine this year’s growth prospects, PM Wong said. (BBG)
Vietnam’s years-long wait for an equity market upgrade might finally end in 2025 as FTSE Russell prepares to issue an index review update, potentially boosting market sentiment amid US tariff chaos. (BBG)
High-yield credit markets are nearing capitulation, according to a measurement conducted by Barclays. The bank’s capitulation signal jumped 26 percentage points since the end of March to 83%, its highest level since October 2023 when Treasury yields spiked on inflation fears. (WSJ)
Goldman Sachs said Brent has the outside potential to fall below $40 a barrel in 2026 under “extreme” outcomes as the trade war flares and supplies rise. That view does not represent the bank’s current base-case outlook, which has Brent at $55 next December. (BBG)
The world must “immediately” make substantial investments in mining uranium to meet surging demand for nuclear energy, according to the latest industry stocktake that highlights the renaissance in the power source. (FT)

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GEOPOLITICAL:

President Donald Trump and Defense Secretary Pete Hegseth pledged a first ever $1 trillion defense budget proposal on Monday, a record sum for the military. (Politico)
China is moving fast to dominate biotechnology, and the US risks falling behind permanently unless it takes action such as investment and barring collaboration with Chinese biotech suppliers, a congressional commission said. (WSJ)
Iranian Foreign Minister said Iran and the US will meet in Oman on Saturday for high-level indirect talks, saying the ball is in America's court. That followed President Trump saying to reporters that if talks with Iran aren't successful, thinks Iran will be in great danger. (@AmichaiStein1/Newswires)

EQUITIES:

Apple Users Rush to Upgrade iPhones Ahead of Potential Tariffs-Related Price Hikes. (WSJ)
Broadcom announced a new share buyback program of up to $10 billion, set to run through the end of the year, sending its shares up nearly 3% in extended trading. (RTRS)
Trump directed a US national security panel to take a fresh look at Nippon Steel's bid for U.S. Steel to help determine if "further action" is appropriate, raising hopes that the deal could gain an elusive green light. (RTRS)
Infineon Technologies said it would buy Marvell Technology's automotive ethernet business for about $2.5 billion in cash, to expand its microcontroller segment. (RTRS)
Levi Strauss said the impact from the tariffs on its results in fiscal 2025 is uncertain, and maintained its annual forecast for sales and profit. CEO Michelle Gass said the company will be “surgical” with any price hikes on its iconic jeans rather than making across-the-board changes. (RTRS/WSJ)
IBM unveiled its latest mainframe system, saying that a chunk of business data will remain on customer-owned servers and never be hosted on the cloud. (BBG)
Freeport-McMoRan CEO said she was concerned about the health of the global economy and the possibility of recession and inflation in the wake of tariffs. (RTRS)
SoftBank Group plans to raise roughly 600 billion yen ($4 billion) by selling five-year bonds to retail investors in the Japanese technology investor's largest-ever retail bond issuance. (Nikkei)
Japan's Rapidus is in talks with 50 potential US clients as challenges to serving Chinese market persist. (DigiTimes)
Samsung Electronics guided for softer first-quarter operating profit but still beat market expectations, as strong smartphone sales likely helped buoy earnings and offset the delayed recovery of its flagship semiconductor business. (WSJ)
SK Hynix’s sales of HBM chips will account for over 50% of total DRAM sales this year amid strong demand, where the Co. will begin mass production of HBM4 12Hi this year and is already planning the 7th-generation HBM chip, HBM4E, “in a timely manner,” said SK Hynix VP Jun-yong Choi. (Business Korea via dnystedt)
BYD forecast strong first-quarter earnings in rare early guidance, a move aimed at restoring confidence among investors after Trump’s reciprocal tariff plan. (WSJ)
Country Garden Holdings Co.’s sales slide continued in March, with the developer faring worse than the broader China housing sector. (BBG)
Fast-fashion giant Shein’s plans to shift some production out of China have met with opposition from the Chinese government, as Beijing seeks to stave off a manufacturing exodus in the face of Trump’s escalating tariffs. (BBG)
Euronext CEO Boujnah said financial markets are trying to adapt to a US they no longer recognise. He said markets are not witnessing panic but rather a rotation of assets, saying there are flows of money leaving the US to be re-invested in Europe. (RTRS)