The Overnight News Roundup - July 3
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 U.S. has lifted some curbs on exports of chip-design software to China, according to Synopsys and Cadence, who say they are working to restore access to recently restricted products. Germany's Siemens has also said the US has allowed chip software sales to resume to China. (WSJ/FT)
US ethane producers said the government has removed license requirements for shipping the gas to China, clearing the way for deliveries to the country’s ports without additional approvals. (BBG)
US and India trade negotiators were pushing on Wednesday to try to land a tariff-reducing deal ahead of Trump's July 9th negotiating deadline, but disagreements over US dairy and agriculture remained unresolved, according to Reuters sources. (RTRS)
South Korea's President Lee said he cannot say if they can conclude US tariff talks by July 8th and the two sides are not really clear on what they want concerning tariff talks, he added that US tariff negotiations are looking very difficult. (RTRS)
South America's Mercosur trade bloc and a group of four small European nations on Wednesday wrapped up talks on a sweeping free-trade agreement a decade in the making that will cover nearly all shipments between the countries. (RTRS)
MACRO:
House GOP leaders are planning a 3.30am ET rule vote on the Trump bill, with a vote on final passage at 5.30am ET. That follows House Speaker Johnson saying he has the votes needed. (Politico/Fox News)
Trump posted on Truth, "“Too Late” should resign immediately!!!...", refencing the story from Wednesday where the FHFA Head called for Fed Chair Powell to be investigated by Congress. (Truth Social)
Two in three reserve managers fear Federal Reserve independence is at risk and nearly half think the rule of law in the US may deteriorate enough to influence their asset allocation significantly, UBS Asset Management said in a survey on Thursday. (RTRS)
Trump voters are now likelier to say that he is more responsible for the current state of the economy than to say that former President Joe Biden is, by a margin of 46% to 34%, according to YouGov survey data gathered for the WSJ between June 17 and 20. Trump voters had been likelier to pick Biden before last month. (WSJ)
A UBS survey shows the “weaponization” of foreign exchange is posing a growing headache for central bank reserve managers, giving them more reason to boost their holdings of gold. (BBG)
BoJ's Takata said the bank should be ready to resume policy tightening if U.S. trade talks progress, confirming that the bank is still looking to raise interest rates. (WSJ)
Japan's service sector activity expanded at a slightly faster pace in June, with business confidence improving to a four-month high, the final Services PPMI showed. (RTRS)
Japan's 30-year government bond auction showed a strong bid-to-cover ratio. The auction results suggest that Japan may be able to dodge a repeat of the market turmoil triggered by sales of longer-maturity bonds in May. (BBG)
Foreign investment in Japanese equities appears to have picked up recently, and reports suggest most of these inflows to stocks and even bonds are going unhedged, deviating from past practice. Expectations of yen strength may explain the shift. (IFR)
China's Caixin PMI, a private gauge of China’s services sector activity, expanded in June, but at a softer pace despite efforts by businesses to attract new customers. The index edged down to 50.6 from 51.1 in May (exp. 51.0), hitting the lowest point since September. (WSJ)
The PBoC has asked European financial institutions for advice on dealing with the effects of low interest rates, as the world’s second-largest economy risks slipping into a prolonged period of low inflation. (FT)
China's north and west braced for more flash floods and landslides on Thursday as annual 'Plum Rains' left a trail of destruction and prompted the mobilisation of thousands of rescue workers to pull people from floodwaters. (RTRS)
A wave of Chinese gold miners are pushing to raise funds in Hong Kong, seeking to capitalize on rising investor interest in the metal during a record-setting rally that’s made it a standout commodity performer. (BBG)
Hong Kong's retailers are battling against shifting consumer habits, as visitors spend less and locals head across the border to China for cheaper dining and shopping, leading to a wave of store closures. (RTRS)
ECB officials are questioning whether the euro has strengthened too much as policymakers fret that a surging currency increases the risk of inflation undershooting. (FT)
European corporate treasurers increasingly are turning to the options market to hedge currency exposure, a more costly method than typically used, as Donald Trump’s trade policies cause bigger-than-usual price swings. (BBG)
The chief executives of large European companies including Airbus and BNP Paribas have urged Brussels to halt its landmark AI act, as the EU considers watering down key elements of the law due to come into force in August. (FT)
German Chancellor Merz’s ruling coalition rebuffed calls to expand a discounted electricity tax to include households and additional companies, saying they’ll only do so when they have “financial leeway.” (BBG)
UK PM Starmer said on Wednesday that financial minister Rachel Reeves would remain chancellor "for a very long time to come" after she was seen crying during prime minister's questions. (BBC)
Swiss consumer prices unexpectedly rose in June, which saw some strengthening in the Swiss Franc. (Newswires)
Australia’s services sector activity accelerated in June and cost inflation softened, sending business confidence to its highest level in more than three years, according to S&P Global. (BBG)
Australia’s debt manager is considering scaling back its issuance of ultra-long bonds as rising yields make funding more expensive. (BBG)
South Korean President Lee Jae Myung vowed on Thursday to implement a "bold" fiscal policy to boost a flagging economy after the country's martial law crisis and to tackle challenges posed by looming U.S. tariffs and North Korea. (RTRS)
Domestic institutional investors are continuing to power India’s equity markets, with net purchases so far in 2025 inching toward last year’s record influx. (BBG)
Expectations are growing for Malaysia’s central bank to cut interest rates at its policy meeting on July 9, with some analysts citing declining exports and softening credit momentum as evidence for a cut. (BBG)
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GEOPOLITICAL:
A senior Chinese official said he was “optimistic” about the future of his nation’s ties with the US, among the most upbeat comments given by Beijing in recent weeks about a relationship upended by Donald Trump’s trade war. (BBG)
EQUITIES:
Starboard Value has built an over 9% stake in Tripadvisor after the online travel-review company eschewed takeover offers in the past year, according to WSJ sources. (WSJ)
Tesla's electric vehicle sales in China in June rose 3.7% from a year earlier, according to Tesla China on Thursday, whilst rising 59% from May to 61k. (RTRS)
Lucid reported a 38% rise in second-quarter deliveries, which, however, missed Wall Street expectations amid economic uncertainty. (WSJ)
Datadog Inc. will be added to the S&P 500 index next week, replacing Juniper Networks Inc. after its recent acquisition by Hewlett Packard Enterprise Co. (BBG)
Drivers for Uber in British Columbia, Canada, joined a union in an effort to negotiate what they said would be the country’s first collective agreement for ride-share drivers. (BBG)
Meta’s AI climate tool raised false hope of CO₂ removal, scientists say. (FT)
DeepSeek is ramping up its recruitment on LinkedIn, suggesting the Chinese AI startup may be looking to lure talent from outside its homeland. (BBG)
AirAsia Bhd is nearing an agreement to buy dozens more Airbus SE single-aisle aircraft in a deal that could be announced during Prime Minister Anwar Ibrahim’s state visit to France this week, according to Bloomberg sources. (BBG)
Department stores in Japan are lagging behind the recent market rally due to a strong yen, which is denting tourist spending power, and low consumer confidence. (BBG)
Ryanair said it canceled 170 flights due to an air-traffic controller strike in France on Thursday and Friday. (WSJ)
Novartis’s drug Cosentyx failed in a late-stage study of patients suffering from inflammation in their blood vessels, a blow to the Swiss company’s efforts to find new uses for the blockbuster medicine. (BBG)
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