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SYMBOL
LAST
BID
ASK
HIGH
LOW
NET CHG.
%CHG.
SPREAD
SPX
S&P 500 Index
6827.42
6827.42
6827.42
6899.86
6801.80
-73.58
-1.07%
--
DJI
Dow Jones Industrial Average
48458.04
48458.04
48458.04
48886.86
48334.10
-245.98
-0.51%
--
IXIC
NASDAQ Composite Index
23195.16
23195.16
23195.16
23554.89
23094.51
-398.69
-1.69%
--
USDX
US Dollar Index
97.890
97.970
97.890
98.070
97.810
-0.060
-0.06%
--
EURUSD
Euro / US Dollar
1.17495
1.17503
1.17495
1.17596
1.17262
+0.00101
+ 0.09%
--
GBPUSD
Pound Sterling / US Dollar
1.33888
1.33896
1.33888
1.33961
1.33546
+0.00181
+ 0.14%
--
XAUUSD
Gold / US Dollar
4324.14
4324.55
4324.14
4350.16
4294.68
+24.75
+ 0.58%
--
WTI
Light Sweet Crude Oil
56.952
56.982
56.952
57.601
56.789
-0.281
-0.49%
--

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Portugal Treasury Puts 2026 Net Financing Needs At 13 Billion Euros, Up From 10.8 Billion In 2025

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Portugal Treasury Expects 2026 Net Financing Needs At 29.4 Billion Euros, Up From 25.8 Billion In 2025

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Bank Of America Says With Indonesia's Smelter Now Ramping Up, It Expects Aluminium Supply Growth To Accelerate To 2.6% Year On Year In 2026

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Bank Of America Expects A Deficit In Aluminium Next Year And Sees Prices Pushing Above $3000/T

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Fed Data - USA Effective Federal Funds Rate At 3.64 Percent On 12 December On $102 Billion In Trades Versus 3.64 Percent On $99 Billion On 11 December

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Brazil's Petrobras Says No Impact Seen On Oil, Petroleum Products Output As Workers Start Planned Strike

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Statement: US Travel Group Warns New Proposed Trump Administration Requirements For Foreign Tourists To Provide Social Media Histories Could Mean Millions Of People Opting Not To Visit

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Blackrock: Kerry White Will Become Head Of Citi Investment Management At Citi Wealth

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Blackrock: Rob Jasminski, Head Of Citi Investment Management, Has Joined With Team

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Blackrock: Effective Dec 15, Citi Investment Management Employees Will Join Blackrock

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Blackrock: Formally Launch Citi Portfolio Solutions Powered By Blackrock

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According To Data From The Federal Reserve Bank Of New York, The Secured Overnight Funding Rate (Sofr) Was 3.67% On The Previous Trading Day (December 15), Compared To 3.66% The Day Before

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Peru Energy And Mines Ministry: Copper Production Up 4.8% Year-On-Year In October To 248192 Metric Tons

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Security Source: Ukrainian Drones Hits Russian Oil Infrastructure In Caspian Sea For Third Time

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Spot Palladium Extends Gains, Last Up 5% To $1562.7/Oz

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Mexico's Economy Ministry Announces Start Of Anti-Dumping Investigation And Anti-Subsidy Investigations Into USA Pork Imports

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Canada Nov CPI Common +2.8%, CPI Median +2.8%, CPI Trim +2.8% On Year

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NY Fed's Empire State Prices Paid Index +37.6 In December Versus+49.0 In November

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Canada Nov Consumer Prices +0.1% On Month, +2.2% On Year

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Canada Nov CPI Core -0.1% On Month, +2.9% On Year

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          Five Key Priorities For NATO After The Summit In The Hague – And How To Make Progress

          Devin

          Political

          Summary:

          As the NATO summit in The Hague concluded, European leaders likely returned home feeling largely relieved. There was no major upheaval and Trump even seemed to have warmed to his NATO peers, saying during the closing press conference that ‘they love their country very much’.

          As the NATO summit in The Hague concluded, European leaders likely returned home feeling largely relieved. There was no major upheaval and Trump even seemed to have warmed to his NATO peers, saying during the closing press conference that ‘they love their country very much’.

          But the ambition for this summit was low. The agenda was shortened to minimize potential disruption, resulting in an equally short summit communique. Meanwhile, Ukraine was decoupled from the summit to prevent major public disagreements between presidents Trump and Zelenskyy, and the Netherlands – and NATO Secretary General Mark Rutte – rolled out the red carpet for Trump.

          There was a sense that the other NATO countries and Rutte just wanted to make it through the less than 24-hour summit without any drama – and they succeeded. Indeed, for much of it, Trump seemed more focused on the aftermath of the US strikes on Iran than on NATO.

          As expected, allies agreed to spend 5 per cent of GDP on defence, which includes 3.5 per cent on core defence and 1.5 per cent on resilience, cybersecurity and infrastructure. This increase will serve to meet NATO capability targets and ensure allies can service the new regional plans approved during the 2023 Vilnius summit. It will also start the process of shifting the burden from the US to Europe. Spain caused perhaps the biggest upset at the summit by stating it can meet NATO capability targets by spending only 2.1 per cent of its GDP. This will have implications for alliance unity and could cause resentment among member countries who spend more.

          Getting through the summit is an important signal to Putin: a public fall out among allies in the current context would have given Russia further vulnerabilities to exploit. But this low bar for the summit is problematic given the external security environment. Now that the summit is over and the alliance remains intact, allies should return with laser focus to the key issues what were left off the agenda.

          Five key priorities for NATO

          The first priority is support for Ukraine. The language on Ukraine in this year’s summit communique was weak compared to last year. The issue of NATO membership was cast aside altogether and it is hard to see how this will gain traction again – although Rutte insists Ukraine is on an ‘irreversible path’ to membership.

          But there were some positives for Ukraine at the summit. During a press conference, Trump suggested the US might consider selling Patriot air defence systems to Ukraine. This has been a constant and clear demand from Ukraine and is particularly urgent as Russia has ramped up its aerial bombardments of Ukraine.

          However, European allies must prepare for the very likely eventuality that the US will halt further aid to Ukraine once the deliveries agreed to by the Biden administration have been completed. Investing directly in the Ukrainian defence industry – the so-called Danish model – is a simple and effective way to ensure continued and consistent support, but it is not yet sufficiently common.

          This model would see allies allocate a percentage of their budget to a fund that is directly procuring in Ukraine for Ukrainian-used capabilities. Such an initiative could be coordinated by the Ukraine–NATO defence contact group. An added bonus of boosting Ukraine’s domestic defence industry is that it will in turn help with Europe’s rearmament as Ukraine begins exporting its domestically produced drones.

          The second priority is continuing the review of NATO’s strategic approach to Russia that was agreed at last year’s summit. This issue was shelved in the run-up to the Hague meeting as it proved difficult to get the US to agree that Russia is a threat at all, let alone how NATO should approach Russia going forward. Any recommendations towards future engagement with Russia should take into account eventual changes in Russian leadership, a stronger deterrence and defence posture for NATO, while managing relations with a nuclear-armed state. It should also build on NATO’s role in helping allies deter and respond to greyzone warfare.

          Political dialogue with Russia will be difficult as long it is fighting its war in Ukraine. But where there are opportunities to do so, NATO should restart conventional arms control negotiations using instruments in the Organization for Security and Cooperation in Europe (OSCE). Dialogue in the Arctic Council may also offer opportunities to avoid instability in the region and preserve the Council’s work on climate change.

          The third priority is preparing for US troop reductions in Europe. Although the US force posture review has not yet started, it is already clear there will be US troops reductions in Europe – potentially returning to pre-2022 surge numbers, possibly even lower. This should accelerate action by European NATO allies and Canada regarding troop recruitment and retention, but that is just the starting point. If NATO’s Article 5 is tested, rapid first response will be crucial. This requires sufficient troops along the eastern flank, supported by appropriate capabilities such as heavy armour and deep strike.

          Until the review has concluded, it is unclear what the impact might be on NATO command structures. But what is clear is that other allies must be ready to step in and take over responsibilities if necessary. There will also be an impact on capabilities based in Europe. The timeline for withdrawal matters greatly here as European allies will struggle to replace US strategic enablers – such as ISR (intelligence, surveillance and reconnaissance), integrated air and missile defence and air-to-air refuelling – in less than a decade, if ever.

          This brings us to the fourth priority: the need to build industrial capacity. Ukraine has shown the importance of having a pre-existing defence industrial and technological base to be able to innovate and scale quickly in the event of a crisis. Europe and Canada need to increase capabilities by approximately one third to service NATO regional plans but, accounting for redundancies, in practice this means about a 50 per cent increase. Improving access to finance across the EU to support defence innovation should continue to be a key priority.

          The fifth and final priority is engagement with NATO’s Indo-Pacific Four (IP4) partners to help counter China. After three of the four IP4 heads of government skipped the NATO summit, the perception is that the relationship is cooling. Yet much closer engagement and cooperation is needed on advanced maritime domain awareness and joint undersea monitoring – a threat both NATO allies and IP4 countries face from Russia and China.

          This NATO summit was about footing the bill for the return to collective defence and starting the process of shifting the burden from the US to Europe. But the real work begins now. The strategy has been set and the next few years are about planning, implementation and execution. Given the need make progress, the secretary-general should consider carefully whether next year’s summit is needed – or even wise. NATO cannot afford to take risks with President Trump, and European allies will not cower indefinitely.

          Source: Chatham House

          Risk Warnings and Disclaimers
          You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.
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          Europe To Buy More American Defense, Paving Way For EU-U.S. Trade Deal: EU Chief

          Thomas

          Economic

          NATO's agreement to more than double allies' defense spending targets will rebalance Europe's trade relations with the U.S. and see the region buy more American weaponry, European Union Council President Antonio Costa told CNBC on Friday.

          Earlier this week, NATO allies agreed to more than double their defense spending target from 2% of gross domestic product to 5% by 2035.

          The move has solved the main trade-related issue between Europe and the United States, Costa told CNBC's Silvia Amaro.

          "What we have decided to do is strengthen our position and to assume greater responsibilities in our own defense. Then I think we solved already the main issue, and then I think the path is paved to solve the other issues," he said.

          At least some part of this higher defense expenditure will be used to "buy American," according to Costa.

          "And of course, if we buy more American, that means then the trade relations rebalance. Then that's the reason — because I have said always that we cannot separate these two negotiations about defense — [that this] was the most important issue for the United States, and [it] is already solved."

          Costa, who served as prime minister of Portugal up until last year, reiterated Trump's previous statements that the military agreement is a "big win," adding that it effectively rebalances the burden sharing on defense.

          The EU is among the trade partners rushing to strike an agreement with Washington ahead of U.S. President Donald Trump's early July deadline for hiking so-called reciprocal tariffs on imports from nearly all countries.

          Steps toward a deal were made this week after the U.S. presented the European Commission with a new proposal. Markets were also buoyed by the Thursday announcement from White House Press Secretary Karoline Leavitt that the July 8 and 9 deadlines for restarting tariffs on nations are "not critical."

          "Perhaps it could be extended, but that's a decision for the president to make," Leavitt said.

          When asked whether the EU could reach a deal ahead of the July deadlines, Costa said the European Commission is currently assessing the White House's trade proposal.

          "Both parties are very engaged to find a solution, and I hope that we will and that we achieve this before the ninth of July," he said.

          Source: CNBC

          To stay updated on all economic events of today, please check out our Economic calendar
          Risk Warnings and Disclaimers
          You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.
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          Fed's Kashkari Expects Two Rate Cuts This Year, With Pause Possible

          Damon

          Central Bank

          Federal Reserve Bank of Minneapolis President Neel Kashkari is sticking to his view that cooling inflation will allow the world's most important major central bank to cut its policy rate twice this year, starting in September.

          In an essay released on Friday, Kashkari also signalled that if progress on inflation stalls or reverses the Fed could simply pause its rate-cutting cycle until prices ease again.

          Tariffs suggest an inflation boost is "likely coming," he said, as more goods from Asia, subject to the biggest tariff increases, arrive on the shelves of U.S. businesses.

          While businesses may not want to risk angering customers by charging more for their wares, they will start passing on price increases in the absence of trade deals lowering tariffs, he said.

          In this scenario, the effect of tariffs on inflation may simply arrive later than expected, Kashkari said.

          At the same time, Kashkari said, the economic data so far has revealed "only a modest imprint of the effects of tariffs on prices, activity or the labor market," with inflation making renewed progress toward the Fed's 2% goal.

          That may suggest, he said, that companies have won exemptions, have adjusted their supply routes, or are otherwise finding ways to avoid the tariffs altogether, limiting the impact on inflation.

          "Those opposing signals have led me to maintain my outlook for two cuts over the remainder of 2025, implying a possible first cut in September, barring some surprising development before then," Kashkari said.

          "If we were to cut in September and then the effects of tariffs showed up this fall, I believe we should not be on a preset easing course" but could adjust to fit the new data, he added.

          "If the data called for it we could hold the policy rate at the new level until we gained greater confidence that inflation was headed back to our target."

          For now, though, Kashkari said: "We should put more emphasis on the actual inflation and real economic data that we are seeing without committing to an easing policy path in case the effects of tariffs are merely delayed."

          Last week, Fed policymakers left their overnight target rate for lending between banks unchanged at between 4.25% and 4.5%. Uncertainty over the outlook is keeping the central bank on the sidelines amid expectations the tariffs will push up inflation this year while depressing growth and hiring.

          Source: Yahoo Finance

          Risk Warnings and Disclaimers
          You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.
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          Ripple, SEC Agree to Mutually Abandon Appeals, Ending 5-Year Legal Battle

          Manuel

          Cryptocurrency

          Political

          Ripple will drop its cross-appeal in its prolonged legal battle with the U.S. Securities and Exchange Commission, signaling an end to one of the crypto industry’s most consequential court cases.
          Ripple CEO Brad Garlinghouse announced the move on social media on June 27 and also revealed that the SEC is expected to drop its appeal as well.
          He wrote: “We’re closing this chapter once and for all, and focusing on what’s most important – building the Internet of Value.”
          The decision follows Judge Analisa Torres’ denial of a joint motion for an indicative ruling earlier this week, marking the second time she dismissed the appeal.
          Ripple’s chief legal officer, Stuart Alderoty, explained that the court’s proffered options were to either dismiss its appeal challenging the prior finding on historic institutional sales of XRP or proceed with the appeal and continue litigation.
          The SEC sued Ripple in December 2020, alleging it conducted an unregistered securities offering by selling XRP tokens to institutional investors. In July 2023, Judge Torres ruled that while XRP itself is not a security and secondary market sales do not violate securities laws, Ripple’s direct sales to institutional investors did constitute unregistered securities offerings.
          The ruling was considered a landmark split decision, with Ripple securing a major victory for the industry in clarifying that programmatic sales and secondary market trading of XRP do not fall under SEC jurisdiction. However, the finding on institutional sales posed potential financial penalties for Ripple.
          The SEC initially signaled an intent to appeal the ruling on XRP’s non-security status but later indicated it would drop that appeal. Ripple’s decision to abandon its cross-appeal effectively ends the litigation over the institutional sales ruling, avoiding further legal expenses and uncertainty.
          The outcome preserves XRP’s legal clarity in the U.S. market while finalizing the company’s settlement exposure. Ripple is expected to pay a civil penalty related to institutional sales, though the final amount is yet to be determined.
          With both appeals set to be withdrawn, the case closes a chapter that has defined crypto’s regulatory landscape for nearly five years. Ripple now plans to shift its focus back to expanding global payment corridors, token utility, and adoption of its XRP Ledger as it advances its vision for an Internet of Value.

          Source: Cryptoslate

          Risk Warnings and Disclaimers
          You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.
          Add to Favorites
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          Canada's Steel Producers Tell Government its Tariff Protection Measures Aren't Enough

          Manuel

          Commodity

          Political

          Canadian steel industry representatives told government officials in a meeting this week that their measures to protect the industry from the consequences of U.S. tariffs are insufficient, two of the representatives who attended the meeting told Reuters.
          On Thursday, steel producers met with Patrick Haley, assistant deputy minister for trade and finance, and other officials from the ministry, telling them the measures announced earlier this month do not protect the industry from steel dumping and could cause mass layoffs, the representatives said.
          U.S. President Donald Trump increased import duties on steel and aluminum to 50% from 25% earlier this month. Canada is the top seller of metals to the United States.
          In response, Canada announced a raft of measures, including establishing new tariff-rate quotas of 100% of 2024 levels on imports of steel products from non-free trade agreement partners.
          Industry representatives at the meeting asked the government to extend tariff quotas to all countries with unfair trade practices, even if they have free trade agreements. Europe and Asia have started diverting their products to Canada to avoid U.S. tariffs, making domestic steel uncompetitive, they said.
          "We don't think the measures announced meet our needs under this dire time," Catherine Cobden, President and CEO of the Canadian Steel Producers Association, told Reuters. Cobden attended the meeting with finance ministry officials on Thursday.
          The Canadian Steel Producers Association said in a separate statement on Thursday that, in its current form, the tariff-rate quota will do little to support its industry.
          Canada's steel industry has laid off 1,000 workers since the first U.S. tariffs in March, and more layoffs could be coming, the association said.
          Keanin Loomis, president of the Canadian Institute of Steel Construction, which includes steel manufacturers, fabricators, and constructors, said that Thursday's government meeting was heavily steel producers-focused, noting that finished steel products imported to Canada have no tariff protection. Loomis also attended the meeting.
          In a text response to Reuters, the Canadian Finance Ministry said that the measures it announced represent a comprehensive and strategic package to defend producers and workers, and were a first step.
          Prime Minister Mark Carney has threatened to increase counter-tariffs on U.S.-produced steel and aluminum if Canada does not reach a broader trade deal with Trump by July 21. Trump on Friday abruptly cut off trade talks with Canada over its new tax targeting U.S. technology firms.
          "These are temporary and calibrated measures that could be expanded depending on the outcome of ongoing discussions with the United States. We are prepared to adjust our response as needed," a spokesperson for the finance minister said.

          Source: Reuters

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          EEUU, China Announce a Trade Agreement - Again, Here's hat it Means

          Manuel

          China–U.S. Trade War

          Economic

          The U.S. and China have reached an agreement — again — to deescalate trade tensions. But details are scarce, and the latest pact leaves major issues between the world's two biggest economies unresolved.
          President Donald Trump said late Thursday that a deal with China had been signed "the other day.'' China's Commerce Ministry confirmed Friday that some type of arrangement had been reached but offered few details about it.
          Sudden shifts and a lack of clarity have been hallmarks of Trump's trade policy since he returned to the White House determined to overturn a global trading system that he says is unfair to the United States and its workers.
          He's been engaged for months in a battle with China that has mostly revealed how much pain the two countries can inflict on each other. And he's racing against a July 8 deadline to reach deals with other major U.S. trading partners.
          The uncertainty over his dealmaking and the cost of the tariffs, which are paid by U.S. importers and usually passed on to consumers, have raised worries about the outlook for the U.S. economy. And although analysts welcomed the apparent easing of tensions with China, they also warned that the issues dividing Washington and Beijing are unlikely to be resolved anytime soon.

          What did the two sides agree to?

          U.S. Treasury Secretary Scott Bessent said Friday that the Chinese had agreed to make it easier for American firms to acquire Chinese magnets and rare earth minerals critical for manufacturing and microchip production. Beijing had slowed exports of the materials amid a bitter trade dispute with the Trump administration.
          Without explicitly mentioning U.S. access to rare earths, the Chinese Commerce Ministry said that “China will, in accordance with the law, review and approve eligible export applications for controlled items. In turn, the United States will lift a series of restrictive measures it had imposed on China.''
          The Chinese have complained about U.S. controls on exports of advanced U.S. technology to China. But the ministry statement did not specifically say whether the United States planned to ease or lift those controls.
          In his interview on Fox Business Network’s “Mornings with Maria,” Bessent mentioned that the United States had earlier imposed “countermeasures'' against China and ”had held back some vital supplies for them.''
          "What we’re seeing here is a de-escalation under President Trump’s leadership,'' Bessent said, without spelling out what concessions the United States had made or whether they involved America's export controls.
          Jeff Moon, a trade official in the Obama administration who now runs the China Moon Strategies consultancy, wondered why Trump hadn’t disclosed details of the agreement two days after it had been reached.
          “Silence regarding the terms suggests that there is less substance to the deal than the Trump Administration implies,″ said Moon, who also served as a diplomat in China.

          Wait. This sounds familiar. How did we get here?

          The agreement that emerged Thursday and Friday builds on a "framework'' that Trump announced June 11 after two days of high-level U.S.-China talks in London. Then, he announced, China had agreed to ease restrictions on rare earths. In return, the United States said it would stop seeking to revoke the visas of Chinese students on U.S. college campuses.
          And last month, after another meeting in Geneva, the two countries had agreed to dramatically reduce massive taxes they'd slapped on each other's products, which had reached as high as 145% against China and 125% against the U.S.
          Those triple-digit tariffs threatened to effectively end trade between the United States and China and caused a frightening sell-off in financial markets. In Geneva, the two countries agreed to back off and keep talking: America’s tariffs went back down to a still-high 30% and China’s to 10%. That led to the talks in London earlier this month and to this week's announcement.

          Where does all this leave U.S.-China economic relations?

          If nothing else, the two countries are trying to ratchet down tensions after demonstrating how much they can hurt each other.
          “The U.S. and China appear to be easing the chokeholds they had on each other’s economies through export controls on computer chips and rare earth minerals, respectively,” said Eswar Prasad, professor of trade policy at Cornell University. "This is a positive step but a far cry from signaling prospects of a substantial de-escalation of tariffs and other trade hostilities.''
          Trump launched a trade war with China in his first term, imposing tariffs on most Chinese goods in a dispute over China's attempts to supplant U.S. technological supremacy. Trump's trade team charged that China was unfairly subsidizing its own tech companies, forcing U.S. and other foreign companies to hand over sensitive technology in exchange for access to the Chinese market and even engaging outright theft of trade secrets.
          The squabbling and negotiating of the past few months appear to have done little to resolve Washington's complaints about unfair Chinese trade practices and America's massive trade deficit with China, which came to $262 billion last year.
          This week's agreement “includes absolutely nothing related to the U.S.’s concerns regarding China’s trade surplus or non-market behavior,'' said Scott Kennedy of the Center for Strategic and International Studies. ”If the two sides can implement these elements of the ceasefire, then they could begin negotiations on issues which generated the initial escalation in tensions in the first place.''

          What is happening with Trump's other tariffs?

          Since returning to the White House in January, Trump has made aggressive use of tariffs. In addition to his levies on China, he has imposed "baseline'' 10% taxes on imports from every country in the world . And he's announced even higher taxes — so-called reciprocal tariffs ranging from 11% to 50% — on countries with which the United States runs a trade deficit.
          But after financial markets sank on fears of massive disruption to world trade, Trump suspended the reciprocal levies for 90 days to give countries a chance to negotiate reductions in their barriers to U.S. exports. That pause lasts until July 8.
          On Friday, Bessent told Fox Business Network that the talks could extend beyond the deadline and be “wrapped up by Labor Day’’ Sept. 1 with 10 to 12 of America's most important trading partners.
          Trump further played down the July 8 deadline at a White House press conference Friday by noting that negotiations are ongoing but that “we have 200 countries, you could say 200 countries-plus. You can't do that.”
          Instead of new trade deals, Trump said his administration would in coming days or weeks send out a letter where “we're just gonna tell them what they have to pay to do business in the United States.''
          Separately, Trump took sudden aim at Canada Friday, saying on social media that he's immediately suspending trade talks with that country over its plan to impose a tax on technology firms next Monday. Trump called Canada's digital services tax “a direct and blatant attack on our country.”
          The digital services tax will hit companies like Amazon, Google, Meta, Uber and Airbnb with a 3% levy on revenue from Canadian users. It will apply retroactively, leaving U.S. companies with a $2 billion bill due at the end of the month.

          Source: AP

          To stay updated on all economic events of today, please check out our Economic calendar
          Risk Warnings and Disclaimers
          You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.
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          Big Banks all Pass the Federal Reserve's stress Tests, but the Tests Were Less Vigorous This Year

          Manuel

          Central Bank

          Forex

          All the major banks passed the Federal Reserve's annual “stress tests" of the financial system, the central bank said Friday, but the test conducted by the central bank was notably less vigorous than it had been in previous years.
          All 22 banks tested this year would have remained solvent and above the minimum thresholds to continue to operate, the Fed said, despite absorbing roughly $550 billion in theoretical losses. In the Fed's scenario, there would be less of a rise in unemployment, less of a severe economic contraction, less of a drop in commercial real estate prices, less of a drop in housing prices, among other metrics compared to what they tested in 2024.
          All of these less harmful, but simulated, drops mean there would be less damage to these banks' balance sheets and less risk of these banks of potentially failing. Since the banks passed the 2024 tests, it was expected that the banks would pass the 2025 tests.
          “Large banks remain well capitalized and resilient to a range of severe outcomes,” said Michelle Bowman, the bank's vice chair for supervision, in a statement. An appointee of President Trump, Bowman became the Fed's vice chair of supervision earlier this month.
          It’s not clear why the Fed chose to go with a less vigorous test this year. In a statement, the bank said previous tests had shown “unintended volatility” in the results and it plans to seek public and industry comment to adjust stress tests in future years. The Fed also chose to not test the banks as heavily on their exposure to private equity assets, arguing that private equity assets are typically held for the long term and are not typically sold at times of distress.
          The Fed also didn’t test for any bank exposure to private credit, a $2 trillion asset class that even Fed researchers themselves have observed to be growing alarmingly quickly. The Federal Reserve Bank of Boston recently pointed out that private credit could be a systemic risk to the financial system under a severe adverse scenario, which is exactly what the stress tests are supposed to test for.
          There was no wording or phrasing in the Fed's press release, reports or methodology about testing or measuring private credit or private debt in this year's test.
          The Fed's “stress tests” were created after the 2008 financial crisis as a way to gauge whether the nation's “too big to fail” banks could withstand another financial crisis like the once that happened nearly 20 years ago. The tests are effectively an academic exercise, where the Fed simulates a scenario in the global economy and measures what that scenario would do to bank balance sheets.
          The 22 banks that are tested are the biggest names in the business, such as JPMorgan Chase, Citigroup, Bank of America, Morgan Stanley and Goldman Sachs, which hold hundreds of billions of dollars in assets and have wide-ranging businesses that touch every part of the U.S. and global economy.
          Under this year's hypothetical scenario, a major global recession would have caused a 30% decline in commercial real estate prices and a 33% decline in housing prices. The unemployment rate would rise to 10% and stock prices would fall 50%. In 2024, the hypothetical scenario was a 40% decline in commercial real estate prices, a 55% decline in stock prices and a 36% decline in housing prices.
          With their passing grades, the major banks will be allowed to issue dividends to shareholders and buy back shares of stock to return proceeds to investors. Those dividend plans will be announced next week.

          Source: AP

          Risk Warnings and Disclaimers
          You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.
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