The Overnight News Roundup - July 10
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:
The US will charge a 50% tariff on Brazilian goods starting Aug. 1, Trump told Brazilian President Luiz Inácio Lula da Silva on Wednesday, citing legal action against Bolsonaro as part of his reasoning. (WSJ)
Trump confirmed in a Truth Social post that the 50% tariff on copper imports, will take effect on Aug. 1st. (Truth Social)
The EU is discussing with US counterparts a range of measures aimed at protecting the bloc's auto industry from steep US import duties, including tariff cuts, import quotas and credits against the value of EU automakers' US exports, industry sources and trade officials told Reuters. (RTRS)
Japan is seeking talks between tariff negotiator Akazawa and US Treasury Secretary Bessent when the US official visits Japan for the World Expo next week. (Yomiuri)
Japan’s automakers slashed the price of products exported to the US at a record pace, in a sign that companies are sacrificing profits to remain competitive as President Donald Trump’s tariffs hit cars. (BBG)
A delegation from India is expected to visit the US soon to continue trade talks, aiming to conclude an initial deal by fall 2025, an Indian trade ministry source told Reuters. (RTRS)
Singapore’s tariff talks with the US will include a focus on pharmaceutical supply chains as the trade-reliant nation navigates President Donald Trump’s global trade war. (BBG)
Malaysia is optimistic it can reach a deal with the US to lower tariffs ahead of the Aug. 1 deadline for trade talks after Trump threatened to impose a steeper levy on the Southeast Asian country. (BBG)
Chinese Foreign Minister Wang Yi called on Southeast Asian nations to uphold openness and cooperation Thursday, delivering a message of inclusivity as President Donald Trump threatens sweeping tariffs on nations across the region. (BBG)
Australia’s Beef Exports to the US Surge Despite Trump Tariffs. (BBG)
MACRO:
US power providers are seeking to impose big price increases on consumers following booming data centre demand, sparking debate over who should pay for the electricity burden of artificial intelligence. (FT)
Manhattan rents hit a record high for the fourth time in the past five months — and there’s no relief in sight for apartment hunters in the market’s busiest season. (BBG)
Japan's annual wholesale inflation slowed in June for the third successive month, backing up the central bank's view that price pressure from rising raw material costs will gradually dissipate. (RTRS)
Long-term Japanese government bonds (JGBs) rallied on Thursday as solid demand at a debt auction counterbalanced concerns over fiscal deficits and an upcoming election. (RTRS)
The impact of U.S. tariffs on Japan's exports and output was limited for now, but many companies worried about the risk of weaking global demand ahead, the central bank said on Thursday. (RTRS)
Japan is unlikely to face pressure from the US to intentionally strengthen the yen despite Trump's criticism of its large trade surplus with the U.S., former top currency diplomat Masatsugu Asakawa told Reuters. (RTRS)
Foreign investors snapped up Japanese stocks for a second straight week through July 5, bolstered by a rally in AI-linked technology stocks, even as the broader market retreated on caution ahead of the deadline for U.S. trade deals. (RTRS)
Trading volume in Japan’s power futures is set to climb as companies prepare for the upcoming expiration of a key agreement between the nation’s largest utilities, a shift expected to jolt the market. (BBG)
A gauge of Chinese property shares posted its biggest gain in nearly nine months, fueled by speculation a high-level meeting will be held next week to help revive the struggling sector. (BBG)
China’s key construction machinery sales jumped in the first half, indicating improving demand across the economically crucial sector. (BBG)
Dutch pension funds are set to put pressure on European government bond markets later this year as they start to sell around €125bn of long-dated bonds because of a substantial reform of the retirement sector. (FT)
German companies are the most optimistic about the economy since early 2022 and for the first time in two years plan to boost investments, according to a report by S&P Global Market Intelligence. (BBG)
UK Chancellor Reeves has ordered a review of the Treasury’s media operation and a campaign to educate Labour MPs on the harsh fiscal reality facing Britain, as the chancellor prepares for a painful Autumn Budget. (FT)
UK house buyer demand in June turned positive for the first time since December 2024, but challenges remain for both buyers and sellers, according to the latest RICS report. (WSJ)
The UK government decided against splitting the power market into several price zones, for now ending a debate that’s rumbled on for years and caused a rift between producers and the nation’s largest residential supplier. (BBG)
Norway’s underlying inflation rate rose for the first time in four months, largely matching expectations and cementing the central bank’s outlook for more easing after the summer. (BBG)
South Korea’s central bank kept interest rates steady Thursday in a widely expected move, amid easing concerns over the economic outlook and caution against rising household debt. (WSJ)
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GEOPOLITICAL:
Taiwan's army displayed the fire power of its first US-sourced M1A2T Abrams tanks - a traditional weapon that analysts say will need to be increasingly protected against drones in any future battle given lessons from the Ukraine war. (RTRS)
Canada should become a world leader in producing and processing raw materials for military equipment and defense systems, according to an influential business group. (BBG)
EQUITIES:
Amazon has begun offering deliveries in as little as 10 minutes in New Delhi, revving up competition with local rivals in one of the fastest-growing segments of online retail. (BBG)
Elon Musk’s AI startup xAI is rolling out Grok 4 just months after releasing its previous iteration, underscoring the frenetic pace of AI development. (BBG)
Taiwan Semiconductor Manufacturing Co.’s revenue rose a better-than-anticipated 39% in the June quarter, buoying expectations for a sustained post-ChatGPT boom in AI spending. (BBG)
Nissan Motor is expected to sell some of its upcoming $4 billion foreign-currency bonds at a record-high coupon, piling more pressure on the struggling Japanese automaker as it seeks to turn around its business. (BBG)
Swiss cocoa grinder Barry Callebaut AG cut its sales volume guidance for a second time in months due to persistent cocoa bean price volatility. (BBG)
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