The Overnight News Roundup - July 1
Your Daily Edge: Overnight Headlines for Traders, Analysts, and Market Observers
PiQ and Zack Eiseman provide you with a consolidated roundup of the overnight news that matters most to markets.
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TRADE:
FT sources report Trump’s top trade officials are scaling back their ambitions for comprehensive reciprocal deals with foreign countries by July 9th, seeking narrower agreements to avert the looming reimposition of US tariffs. Administration is also still considering imposing tariffs on critical sectors. (FT)
FT sources report India is on track to seal an interim trade agreement with the US as soon as this week, where the deal would be an initial step towards a comprehensive bilateral accord, with both sides saying they would seek to finalise the first tranche of the full agreement by autumn. (FT)
Japan's Chief Cabinet Secretary Hayashi said Japan will not sacrifice its farmers to secure tariff exemptions from the US. (Newswires)
Italy will increase its imports of US soybeans as part of a new effort to rebalance trade between the two countries, US Agriculture Secretary Brooke Rollins told reporters Monday after meeting with her Italian counterpart. (BBG)
MACRO:
Tesla shares are pressured after Trump posted on Truth Social, "Elon Musk knew, long before he so strongly Endorsed me for President, that I was strongly against the EV Mandate... without subsidies, Elon would probably have to close up shop and head back home to South Africa." Trump suggested DOGE should look into the subsidies across "Rocket launches, Satellites, or Electric Car Production". (Truth)
Republicans’ Effort to Pass Megabill Stretches Overnight. (WSJ)
Efforts by some Republicans to ban state laws that would regulate AI as part of the BBB hit a fresh snag Monday, when Sen. Marsha Blackburn (R., Tenn.) pulled her support for the effort. (WSJ)
American Bitcoin, a cryptocurrency venture associated with President Trump’s family, raised $220 million to buy Bitcoin and digital asset mining equipment, according to a filing Monday. (BBG)
Large Japanese manufacturers became slightly more optimistic about their business conditions in the second quarter despite tariff concerns, reviving rate-hike expectations. (WSJ)
Japanese government bonds rose following strong demand at an auction for 10-year bonds, prompting investors to cover short positions. (RTRS)
Japan's tax revenues likely hit a record for a fifth straight year in the fiscal year that ended in March due to robust corporate profits and rising inflation. (Nikkei)
Japan will extract rare earth minerals from an offshore deposit in a first-of-its-kind pilot project that will begin January next year. (Nikkei)
The Caixin PMI, a private gauge of China’s manufacturing activity, bounced back into expansionary territory in June (50.4 vs. Exp. 49.0; Prev. 48.3), as a temporary trade truce between Beijing and Washington eased some pressures on Chinese factories. (WSJ)
China's resale home prices fell at a faster pace in June, highlighting the persistent weakness in the crisis-hit property market despite a slew of policy support measures, a private survey showed. (RTRS)
China has increased the amount of money that approved investors can put into overseas assets for the first time since May last year as its relaxes its control over capital outflows.
The Shenzhen Stock Exchange has published rules aimed at making it more flexible for tech firms listed on the ChiNext board to raise funds to improve their ability to innovate. (China Securities Journal)
ECB's Simkus said the Bank has fulfilled its inflation goal but volatility in foreign-exchange and commodities markets means the outlook for prices is murky. (BBG)
Olaf Sleijpen is taking over as the head of the central bank of the Netherlands, succeeding Klaas Knot, and is expected to adopt a similar, hawkish monetary-policy stance. (BBG)
UK house prices fell by 0.8% in June, a sharper fall than forecast and the biggest monthly decline in more than two years, as a discount on property transactions ended, Nationwide data showed. (RTRS)
UK shop prices rose for the first time in almost a year, with supermarkets in particular hurt by higher taxes and wholesale costs, according to BRC data. (BBG)
New Zealand businesses were more upbeat about the future in the second quarter even as their own trading remained sluggish, according to the New Zealand Institute of Economic Research. (BBG)
Two of the Middle East’s largest oil companies (Aramco and Adnoc) are scaling back their multibillion-dollar acquisition sprees as expectations of a sustained drop in oil revenues curb their global dealmaking. (FT)
The slowdown in Asia’s manufacturing activity deepened further in June, a warning sign for the region’s growth prospects as tariffs on shipments to the US are poised to increase next week. (BBG)
The Taiwan dollar surged more than 2% in another day of volatility for the currency, as exporters’ sales of the greenback tested the central bank’s tolerance for local currency strength. (BBG)
Taiwan’s life insurers were caught flat-footed when the local dollar surged in May, with the latest data suggesting that elevated hedging costs have hampered efforts to mitigate currency risks. (BBG)
South Korean stocks jumped Tuesday, making them among the top gainers in Asia, as shares of holding companies rallied on hopes that revisions to the Commercial Act will be approved by the parliament this week. (BBG)
South Korea’s exports rebounded in June largely on brisk semiconductor shipments, indicating resilience despite challenges from higher U.S. tariffs weighing on global trade. (WSJ)
South Korea’s $206.5 billion sovereign wealth fund is standing by US Treasuries as a core holding, undeterred by recent market volatility, its CEO said in a Bloomberg interview. (BBG)
Mexico and Brazil seek deeper trade ties to expand beyond US and China. (FT)
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GEOPOLITICAL:
Israeli PM Netanyahu is expected to meet with President Trump at the White House on July 7th, according to Israeli and US officials cited by Bloomberg.
EQUITIES:
'Amazon Is on the Cusp of Using More Robots Than Humans in Its Warehouses' WSJ article notes the e-commerce giant now counts more than one million of the machines at its facilities. (WSJ)
Tesla raised the price of its Model 3 long-range edition mid-sized sedan electric car in China to 285,000 yuan ($39,784.47) from 275,500, an increase of around $1,395, according to pricing information on the automaker's website. (RTRS)
Barclays analysts have downgraded the stock of several major advertising holding companies, saying the industry will continue to see low growth as it makes a transition to an industry fundamentally changed by artificial intelligence. (WSJ)
Hershey Co. will remove synthetic dyes from its snacks by the end of 2027, the latest in a string of major food companies that have announced similar moves. (BBG)
Circle Internet Group Inc. is seeking to create a national trust bank in the US, which would allow it to act as a custodian for its own reserves. (BBG)
Wolfspeed Inc., a chipmaker caught in Trump’s push to reshape Biden-era tech subsidies, filed bankruptcy to enact a creditor-backed plan to slash $4.6 billion in debt. (BBG)
Two Chinese artificial intelligence chip startups are seeking to raise a combined 12 billion yuan ($1.65 billion) in initial public offerings, hoping U.S. curbs on advanced chip sales to China will boost local demand for their products, their filings show. (RTRS)
Chinese automakers continued to expand their European foothold in May, capturing the highest share ever of hybrid-car sales and the biggest slice of the electric-vehicle market in 10 months. (BBG)
Macau’s monthly gaming revenue rose 19% in June, exceeding analyst expectations as visitors poured in to the world’s biggest gambling hub for Cantonese pop concerts and other entertainment offerings. (BBG)
Nissan Motor has asked some suppliers to allow it to delay payments to free up short-term funds, according to several emails and a company document reviewed by Reuters, as the troubled Japanese automaker scrambles to boost cash. (RTRS)
SAP won an early round in a lawsuit filed in the US by one of Europe’s most valuable startups accusing the German technology giant of illegally wielding its market power. (BBG)
Renault Group said it would book a 9.5 billion euro ($11.20 billion) non-cash loss in the first half as a result of changes in the way it accounts for its stake in Nissan. (WSJ)
Natixis SA hired senior managers from JPMorgan Chase & Co. and Societe Generale SA for its new banking business in Japan and plans to double Tokyo staff in coming years as it expands the operation. (BBG)
Standard Chartered hit with $2.7bn lawsuit over 1MDB scandal. (FT)
Aviva’s plan to buy Direct Line Insurance Group Plc for roughly £3.7 billion to create the UK’s largest motor insurer has been given the nod from the country’s competition regulator. (BBG)
J Sainsbury Plc’s sales rose more than expected in what it called a positive start to the year, as food inflation accelerates across the UK. (BBG)
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