Canada PM Carney Unveils New Cabinet With Healthy Dose Of Newcomers

Political

Summary:

Canadian Prime Minister Mark Carney unveiled Tuesday a new cabinet weeks following his election victory, leaning on newcomers and key officials working on U.S.-Canada relations to rebuild a weakened economy exposed by President Trump's tariff policy.

Carney is keeping François-Philippe Champagne as Finance Minister. Champagne faces two big immediate tasks: host his Group of Seven peers next week in Banff, Alberta in a three-day gathering likely to be dominated by trade; and present a budget plan, likely next month, to outline spending and tax-cut plans as promised during the spring election campaign.

The majority of the 28-member cabinet are either newly elected or are serving in cabinet for the first time, as Carney tries to further distance his administration from the previous government of former prime minister Justin Trudeau. Carney, a former central banker, won the election on April 28, arguing he has the economic acumen and policymaking mettle to lead Canada in this period of economic turmoil.

The new cabinet "is built to deliver the change Canadians want and deserve," Carney said. "Everyone is expected and empowered to show leadership - to bring new ideas, a clear focus, and decisive action to their work."

Before taking over as Liberal Party leader, he said the Trudeau government didn't pay sufficient attention to the economy, and acknowledged it was in a feeble state prior to Trump unveiling tariffs of up to 25% of key Canadian imports, such as automobiles, steel and aluminum.

Among the notable moves is shifting Anita Anand as Canada's Foreign Minister. Melanie Joly, formerly the foreign minister and part of Carney's inner circle on dealing with the Trump White House, moves to the industry portfolio, while Dominic LeBlanc retains responsibility for trade between the U.S. and Canada. LeBlanc and Joly traveled to the White House last week with Carney to speak with Trump.

Carney has also appointed a former Goldman Sachs executive, Tim Hodgson, to be Canada's Energy Minister. Carney has promised to accelerate the construction of certain energy projects, like a cross-country pipeline connecting the west to the east. The oil-rich province of Alberta has warned it could hold a referendum next year on separating from Canada due to frustration over the federal environmental policy.

Hodgson once advised Carney — also part of the Goldman Sachs alumni — when Carney served as Bank of Canada governor.

Source: Dow Jones Newswires

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Damon

Economic

BRUSSELS (May 13): The easing of trade tensions between the United States and China is a step in the right direction and helps reduce European fears of being flooded with Chinese goods redirected from the US market, European Economic Commissioner Valdis Dombrovskis said.

Speaking to reporters after a meeting of European Union finance ministers on Tuesday, Dombrovskis noted, however, that the reduction of tariffs after weekend talks in Switzerland was for 90 days and the tariff rates that remained were still high.

"Obviously this easing of trade tensions between the US and China is heading in the right direction but it is worth noting that the 30% tariffs which the US would continue to apply to Chinese goods, also in this 90-day period, is still quite a high tariff level and correspondingly trade distortive," he said.

"But of course it may ease somewhat the trade diversion concerns we had," Dombrovskis told a news conference.

The president of the European Commission, Ursula von der Leyen, urged China on April 8 to ensure that goods that could no longer enter the US because of prohibitively high tariffs were not redirected to the EU.

On Monday, Washington also announced that the US would cut the "de minimis" tariff for low-value items imported from China, further de-escalating a potentially damaging trade war between the world's two largest economies.

Source: Theedgemarkets

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Adam

Commodity

Gold prices are modestly up in early U.S. trading Tuesday, on a corrective bounce following Monday’s big downdraft. Silver prices are also posting mild gains. Improved risk appetite in the general marketplace early this week is a bearish anchor for the safe-haven metals. June gold was last up $22.20 at $3,250.10. July silver prices were last up $0.221 at $32.84.

The just-released U.S. data point of the day saw the consumer price index report for April come in at up 2.3%, year-on-year, slightly down from up 2.4% in the March report. The core CPI (excluding food and energy) came in at up 2.8%, year-on-year, also unchanged from the March report and in line with market expectations. The marketplace showed no major reactions to the data but the U.S. stock indexes did up-tick slightly. The report does lean slightly friendly for the precious metals markets because it’s not a problematic inflation report that would give the Federal Reserve pause on cutting interest rates.

Asian and European stock markets were mostly higher in overnight trading. U.S. stock indexes are pointed to slightly higher openings today in New York, on corrective pullbacks after solid gains on Monday. Risk appetite has improved early this week on signs of a thawing in the U.S. China cold war on trade.

The key outside markets today see the U.S. dollar index weaker after strong gains Monday. Nymex crude oil futures prices are higher and trading around $62.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.455%.

Other U.S. economic data due for release Tuesday includes the weekly Johnson Redbook retail sales report, real earnings, and the NFIB small business index.

Gold sees modest upside price correction after Monday’s big drop_1

Technically, June gold futures bulls and bears are on a level overall near-term technical playing field. Bulls’ next upside price objective is to produce a close above solid resistance at $3,350.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,200.00. First resistance is seen at the overnight high of $3,270.40 and then at $3,300.00. First support is seen at the May low of $3,209.40 and then at $3,200.00. Wyckoff's Market Rating: 5.0.

Gold sees modest upside price correction after Monday’s big drop_2

July silver futures bulls have the slight overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $34.015. The next downside price objective for the bears is closing prices below solid support at $31.00. First resistance is seen at $33.00 and then last week’s high of $33.48. Next support is seen at $32.50 and then at $32.00. Wyckoff's Market Rating: 5.5.

Source: kitco

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Warren Takunda

Economic

Donald Trump has used his executive powers to order sweeping cuts to the price of prescription drugs in the US, in an effort to bring them in line with other developed countries.

The plans, first announced in a social media post on Sunday, triggered a sharp fall in drugmakers’ share prices on Monday. However, these later reversed amid growing scepticism that the shake-up would be as severe as promised.

What is Trump proposing?

His order directs the US health secretary, Robert Kennedy, to send price targets to the pharmaceutical industry and kick off a round of negotiations within 30 days to reduce prices from their current levels. The US currently pays by far the most for its medications.

If talks hit an impasse, Kennedy is instructed to enforce the “most favoured nation” pricing model and limit US prices to the lowest rates paid by other wealthy countries. At a press conference, the US president said this would amount to price cuts of between 59% and 90%.

Health officials said that, unlike a similar push in Trump’s first term, the new policy would target not just Medicare, the US government-funded programme that covers people aged 65 and older, but also Medicaid, for people on low incomes, and treatments covered by private health insurance.

Officials also said it was fair to assume that slimming drugs known as GLP-1s, such as Wegovy, Ozempic and Zepbound, would be included. Trump mentioned the “fat shot drug” and said he had become aware of the huge price differences when a businessman told him he had bought Ozempic for $88 (£67) in London, but was paying $1,300 for it in New York.

Haven’t we been here before?

Trump’s attempts during the final months of his first term to bring down drug prices were struck down in federal court. That “most favoured nation” plan would have tied reimbursements for 50 drugs by Medicare to the lowest prices paid by certain other countries.

A federal judge blocked the move after ruling that the administration had failed to give the public a chance to comment. The Biden administration dropped the proposal under pressure from hospitals and drug companies, but last year Medicare started negotiating some prices for the first time, under the Inflation Reduction Act.

How would the scheme work in practice?

There is not a lot of detail in the executive order and it is unclear what impact, if any, it would have on millions of Americans with private health insurance. The federal government has the most power to influence the prices of drugs covered by Medicare and Medicaid.

Experts said the new policy kept pressure on pharmacy benefits managers (PMBs), the “middlemen” such as Cigna, CVS and UnitedHealth that negotiate drug prices with pharma companies in the US. The White House wants drugmakers to sell more products directly to patients.

The main US lobby group, the Pharmaceutical Research and Manufacturers of America (PhMRA), said the US was the only country in the world that let PMBs, insurers and hospitals take 50% of every dollar spent on medicines, and that the amount going to middlemen often exceeded the price in Europe. “Giving this money directly to patients will lower their medicine costs and significantly reduce the gap with European prices,” it said.

The pharmaceutical industry is likely to push back hard against the proposed shake-up. The US health policy research group KFF told NBC News it “would expect the drug industry to throw every legal argument at this proposal”. However, AstraZeneca and the Wegovy and Ozempic maker, Novo Nordisk, struck a conciliatory note, saying they would engage with policymakers.

What impact could it have?

The Medicare and Medicaid programmes together account for two-fifths of US drug sales. Analysts at UBS have calculated that European drugmakers could see an average hit of 6% to profits if “most favoured nation” prices are introduced on the top 50 drugs in the US, while US companies would face a 10% drop.

Bristol Myers Squibb and Pfizer would be worst-hit among the US pharma companies and Eli Lilly least-affected, while in Europe AstraZeneca and Novo Nordisk would take the brunt and GSK and Sanofi would suffer the least.

PhRMA has warned that the planned price cuts would “jeopardise the hundreds of billions [of dollars that] our member companies are planning to invest in America”. Profits from US drugs prices have long helped fund the development of new treatments used around the world.

In recent weeks big pharma companies have announced a spate of big investments, adding up to close to $200bn, as they sought to head off a threatened sector-specific tariff. As the US remains the biggest market for most international drugmakers, it is unlikely that Trump’s order will derail those investment plans.

How does drug pricing work around the world?

Governments determine the price of medications in the UK, the EU and other countries by negotiating directly with pharma companies, and often pay less. Drugmakers offer tiered pricing, with rates varying depending on the destination country and bigger discounts for poorer nations.

Wegovy has a list price of $1,349 for a month’s supply in the US, while in the UK a starting dose costs from £130 a month, and in Germany the drug costs between €170 (£143) and €300 a month. The Democratic senator Bernie Sanders, a presidential candidate in 2020, has called the US “Novo Nordisk’s cash cow”.

A 2021 study found that drug prices in the US were “substantially higher” than those in each of 32 other countries. Compared with all those countries combined, US prices were 256% higher.

What does all this mean for threatened pharma tariffs?

It seems that a sector-specific levy is off the table, and products have been spared the 25% tariffs that other sectors such as steel, aluminium and cars have endured. Trump hinted at a reprieve earlier this month, saying the US administration would give companies “a lot of time” to move their operations to the country before facing a “tariff wall”.

Source: Theguardian

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Blue River

Economic

Forex

Technical Analysis

USDCAD technicals

The USDCAD extended higher yesterday and again earlier today, but both rallies have stalled just ahead of a key resistance confluence. The area of interest includes:

● The 200-day moving average, currently near 1.40111

● The swing area resistance between 1.4009 and 1.4027

● Today’s high stopped at 1.40157 before rotating back lower

This zone has now rejected buyers on two separate occasions, reinforcing its role as a critical barrier that bulls must break to extend the upside bias. A clean move above 1.4027 would open the door toward the 38.2% retracement of the move down from the March high at 1.40525, with other key resistance around the 50% and swing area between 1.4146–1.41836.

On the downside, the initial support now comes in near 1.3978, where the 200-bar moving average on the 4-hour chart lines up with the old swing high from April 15. Holding above that level keeps the rebound and short term bullish bias intact. A move below it, however, could trigger a deeper correction down to 1.389172 1.3904 swing area.

Key technical levels:

● Resistance: 1.4009–1.4027 (200-day MA + swing), 1.40525 (38.2% retracement), 1.4146 to 1.41836 (50% and swing area)

● Support: 1.3978 (4H 200-bar MA/old high from April 15), 1.38917 – 1.3904 (swing area)

● Bias: Neutral to bullish above 1.3978; stronger bullish bias only above 1.4027 and then the 38.2% retracement at 1.40525

Source: ForexLive

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Adam

Stocks

Central Bank

UBS downgraded U.S. equities to Neutral from Attractive following an 11% rally in the S&P 500 since early April.

The bank pointed to reduced upside after progress on U.S.-China trade talks drove market gains.

“We downgrade U.S. equities to Neutral from Attractive,” UBS said, noting that “risk-reward in equities is now more balanced.”

The firm had upgraded U.S. stocks on April 10, arguing that excessive trade-related pessimism was priced in. But with tariffs temporarily paused and markets rebounding, UBS believes the easy gains are behind.

On Monday, the S&P 500 rose 3.3% and the Nasdaq jumped 4.4% after the U.S. and China agreed to reduce tariffs for 90 days while negotiations continue.

U.S. levies on Chinese imports will fall to 30% from 145%, while China will cut tariffs on U.S. goods to 10% from 125%.

“The pace and scale of tariff reductions agreed in this initial round have exceeded market expectations,” UBS said.

Despite the downgrade, UBS emphasized it is “not a bearish view, nor a call to sell equities.”

“Uncertainty is still high,” UBS cautioned, “and investors will soon begin to focus on whether this temporary fix can evolve into a lasting agreement.”

The bank continues to advise a full strategic allocation to U.S. stocks and expects equities to be higher 12 months from now.

UBS’s sector preferences remain unchanged, with Attractive ratings on communication services, tech, health care, and utilities.

Looking ahead, UBS said the “durability of this rally will depend on two key factors: whether U.S.-China negotiators can turn this into a lasting trade agreement, and how Beijing proceeds with anticipated stimulus.”

Source: Investing

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Michelle

Economic

Forex

China's State Council Tariff Commission announced on May 13, 2025, that tariffs on US imports will drop from 34% to 10%, effective the following day. The move could affect economic relations. This tariff reduction, part of a reciprocal agreement, may influence market sentiment across various sectors. Cryptocurrencies could see indirect effects due to shifts in macroeconomic confidence.

China's State Council Tariff Commission declared a significant tariff reduction on American goods. Effective May 14, 2025, the tariff rate drops from 34% to 10%, while the 24% surcharge will be suspended for 90 days. This decision aligns with a US-China trade agreement.

China's Tariff Decision Sparks Market Watch

These tariff changes are anticipated to enhance US-China economic relations temporarily. The immediate implications include potential stabilization of trade ties and a reduction in trade-related uncertainties. Markets sensitive to US-China interactions may respond accordingly.

This adjustment may influence the broader economic environment and market sentiment, particularly for assets sensitive to US-China trade relations.

This adjustment may influence the broader economic environment and market sentiment, particularly for assets sensitive to US-China trade relations. - China News Online

Market Reactions and Future Outlook

Did you know? The US and China have had a long history of trade negotiations, often impacting global markets significantly.

Market reactions have been mixed, with stakeholders monitoring potential effects. While no prominent cryptocurrency industry figures have commented publicly, the broader market sentiment might shift, impacting digital assets tethered to economic conditions between these major economies.

Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 14:19 UTC on May 13, 2025. Source: CoinMarketCap

Recent developments in multiple cryptocurrency policies, such as Binance's significant new investments, could add more layers of complexity to market reactions.