MONEY MASTER

The US is taking a  dual-track approach toward Iran , combining  potential sanctions relief  with aggressive  tariff threats on countries supplying weapons , adding another layer of uncertainty to global trade and geopolitics. Mixed Signals: Diplomacy and Escalation Donald Trump  indicated that Washington is  open to discussing tariff and sanctions relief with Iran , acknowledging a key demand from Tehran as part of ongoing ceasefire negotiations. This marks a notable shift, as Iran has been under  heavy economic sanctions since 2018 , following the US withdrawal from the nuclear agreement. At the same time, Trump issued a stark warning: countries providing  military support to Iran could face 50% tariffs on all exports to the US . Tariff Threat Faces Legal Constraints Despite the strong rhetoric, the administration’s ability to implement such tariffs immediately is uncertain. A recent  US Supreme Court ruling  limits the president’s aut...

The Trump administration is preparing a major overhaul of US  steel and aluminum tariffs , with changes that could  raise effective costs for importers  while simplifying compliance for manufacturers. Shift to Simpler but Broader Tariff Structure Under the proposed changes, finished goods containing steel and aluminum will face a  25% tariff on the full product value , replacing the current system. Previously, tariffs of up to  50% applied only to the metal content  within a product. The new approach simplifies calculation but  broadens the taxable base , potentially increasing overall duties. Commodity-grade metals will still face  50% tariffs , maintaining strong protection for domestic producers. The policy is being driven by  Donald Trump ’s push to  reshore manufacturing and strengthen domestic industry . Higher Costs Despite Lower Headline Rates While the headline tariff rate appears lower, the impact is likely the opposite. By app...

Quick Summary Wall Street rebounded , led by AMD’s 8.8% surge on a major AI chip deal with Meta FBM KLCI slipped 0.23% , ending a four-day winning streak Malaysia’s reserves hit US$127.9 billion , highest since 2014 PM Anwar says Malaysia  won’t rush decisions  after US tariff reversal Wall Street Recap: AI Optimism Returns US markets bounced back as investors viewed Monday’s AI selloff as overdone. Nasdaq:  +1.04% S&P 500:  +0.77% Dow Jones:  +0.76% The rally was driven by: Advanced Micro Devices  (AMD)  +8.8% Following a massive AI GPU order from  Meta Platforms Intel  +5.7% After investing US$350 million in AI chip startup SambaNova IBM  and  Salesforce  also rebounded Precious metals were mixed amid tariff and geopolitical tensions: Gold futures:  -0.7% to US$5,186 Silver futures:  +1% Bursa Malaysia: Mild Profit-Taking FBM KLCI:  1,754.01 (-0.23%) Top gainer:   Petronas Dagangan Bhd  (PETDAG) ...

Market Overview Malaysia is expected to  keep its benchmark interest rate unchanged  at its first policy meeting of the year, as  strong economic growth and subdued inflation  give policymakers room to remain patient amid rising global uncertainty. According to a Bloomberg survey, all economists expect  Bank Negara Malaysia  to hold the  overnight policy rate (OPR) at 2.75% , following a single 25-basis-point cut in July 2025. Why BNM Can Afford to Hold Malaysia’s economy ended 2025 on solid footing, outperforming earlier concerns around external shocks. Key supports include: Stronger-than-expected economic growth  in the second half of 2025 Record-high exports  last year, despite fears of US tariff-driven slowdowns Inflation at a five-year low of 1.4% , well below the central bank’s comfort range Together, these factors reduce the urgency for further policy easing. External Risks Are Rising Looking ahead, policymakers remain cautious. Malays...

2025 was one of the most volatile years for global markets in recent memory. Investors faced multiple shocks — concerns over artificial intelligence valuations, rising geopolitical tensions, changes in US trade policy, and large swings in cryptocurrencies. Yet by year-end, major stock markets, including the S&P 500, had recovered and reached new highs. A consistent theme emerged:  investors who avoided panic selling and stayed focused on long-term fundamentals generally navigated the year better. Period What Happened Market Impact January DeepSeek AI release raised concerns over tech valuations Semiconductor stocks fell sharply, then recovered April US tariff announcements Global markets sold off, followed by strong rebound June Escalation of Middle East conflict Temporary pullback in risk assets October Crypto market decline Bitcoin and related stocks weakened Year-end Slowing labour market & Fed easing expectations Stocks recovered to new highs What Investors Can Learn • ...

Investor Takeaways 1. Grocery inflation may ease , particularly for coffee, beef, and juice, though price relief will depend on how quickly shipments resume. 2. The move marks a subtle recalibration of Trump’s tariff agenda , acknowledging that sweeping trade penalties have fueled consumer price pressures. 3. Brazil–US relations enter a more constructive phase , reducing uncertainty for commodities traders and consumer goods importers. 4. For markets: Soft commodities  (coffee, beef, OJ futures) may see pricing pressure as US demand normalizes. Consumer staples  stocks with high exposure to these inputs may benefit from margin relief. Broader trade policy remains volatile , especially as Trump balances geopolitical goals with voter sensitivity to inflation. US President Donald Trump has expanded tariff exemptions on a wide range of Brazilian food imports, escalating efforts to ease household cost pressures ahead of 2026 as voter dissatisfaction over the cost of living intensif...

  Key Takeaways New tariffs:  U.S. President Donald Trump announced an  additional 10% levy on Canadian goods , escalating trade tensions. Canada’s counterplay:  Prime Minister  Mark Carney  is leading an  Asia-focused trade diversification drive , targeting new agreements with  ASEAN ,  China , and  India . Economic strategy:  Ottawa aims to  double exports beyond the U.S. within a decade , reducing reliance on its southern neighbour, which currently buys  ~75% of Canada’s exports . Infrastructure focus:  Western Canada — especially  Prince Rupert Port  — emerges as a  key export hub  for commodities and energy shipments to Asia. Carney’s Asia Mission: A Reset in Foreign Trade The timing of Carney’s  first Asia tour as prime minister  coincides with Trump’s renewed tariff salvo. At the  ASEAN Summit in Malaysia , Carney worked to finalise a  Canada–ASEAN free trade agreement , ...

India and the United States are close to finalizing a  trade agreement  that could  slash tariffs on Indian exports to 15%–16% , down from the current average of about  50% , according to a report by the  Mint  newspaper citing three sources familiar with the talks. As part of the potential deal,  New Delhi may agree to gradually curb imports of Russian oil  while allowing  greater US exports of non-genetically modified corn and soymeal  into India. The announcement could come during a possible  meeting between US President Donald Trump and Indian Prime Minister Narendra Modi  at the upcoming  ASEAN Summit in Malaysia , the report said. The move is seen as a major step toward easing trade tensions between the two countries and aligning India more closely with the US amid shifting global supply chains.

 Japan’s exports rose for the first time in five months in September, lifted by a weak yen that offset ongoing US tariff pressures. However, economists warned that the recovery may be short-lived as the effects of recent tariff changes continue to ripple through key industries. Exports Boosted by Yen Weakness Total exports increased  4.2% year-on-year  in September, ending a four-month slump. The gain came slightly below economists’ forecast of a 4.6% rise and followed a 0.1% decline in August. Analysts attributed the improvement largely to the yen’s depreciation, which made Japanese goods cheaper overseas. Despite the rebound, shipments to the United States plunged  13.3% , marking the sixth straight month of decline. Auto exports fell  24.2% , while chipmaking equipment exports dropped  45.7% . Exports to  China , by contrast, rose  5.8% , supported by stronger demand for vehicles and manufacturing materials. Shipments to the rest of  Asia ...

US Treasury Secretary  Scott Bessent  will meet  Chinese Vice Premier He Lifeng  in  Malaysia next week  in a fresh attempt to defuse tensions ahead of a looming escalation in tariffs, as both sides seek to prevent another trade war spiral. Bessent confirmed the meeting after a phone call with He on Friday evening, saying the two had engaged in  “frank and detailed discussions”  on bilateral trade. China’s state news agency  Xinhua  described the talks as  “candid, in-depth, and constructive” , with both sides agreeing to convene a new round of in-person negotiations “as soon as possible.” The upcoming talks will take place just weeks before the expiration of a  tariff truce  that had rolled back duties from triple-digit levels on both countries’ goods. The truce is set to expire on  Nov 10 , raising the stakes for next week’s dialogue. Malaysia: A Neutral Ground Under Pressure The decision to hold the meeting in...

Key Takeaway:  Despite export bans, China’s semiconductor industry continues to secure vital chipmaking tools from US and allied firms, exposing cracks in the global tech blockade. Policy Gaps Undermine US Efforts A bipartisan US congressional report has revealed that Chinese chip manufacturers purchased  US$38 billion  worth of semiconductor equipment from American and allied suppliers in 2024 — a  66% jump  from 2022. The surge highlights  loopholes  in export controls introduced by the US, Japan, and the Netherlands. These inconsistencies allowed non-US companies to sell equipment to Chinese firms that American suppliers were barred from serving. Who’s Selling and Who’s Buying According to the report, sales to China represented  39% of total revenue  for top toolmakers: Applied Materials Lam Research KLA Corp ASML Tokyo Electron Chinese firms  SwaySure Technology ,  Shenzhen Pengxinxu , and  SiEn (Qingdao)  were identif...

The White House has announced that  all medium- and heavy-duty trucks imported into the U.S. will face a 25% tariff starting Nov 1 , marking a major escalation in President  Donald Trump’s trade protection strategy  aimed at supporting domestic manufacturers. The move — justified on  national security grounds  — targets imports of delivery trucks, buses, and semi-trailers from key trading partners including  Mexico, Canada, Japan, Germany, and Finland , all of which are U.S. allies. Trump said the tariffs are designed to protect U.S. truckmakers such as  Paccar’s Peterbilt and Kenworth  as well as  Daimler Truck’s Freightliner , which he described as “vital to America’s industrial strength.” Key Details Effective date:  November 1, 2025 Tariff rate:  25% on all medium- and heavy-duty truck imports Top import sources:  Mexico, Canada, Japan, Germany, Finland Affected firms:  Stellantis (Ram), Daimler Truck, Volvo Group, Pac...

  Fresh Tariff Wave Announced US President Donald Trump announced new duties on imported wood and furniture, citing national security concerns. Effective  Oct 14 , tariffs will be set at  10% on timber and lumber  and  25% on kitchen cabinets, bathroom vanities, and upholstered furniture . The duties fall under  Section 232 of the Trade Act of 1974 , the same mechanism used for steel and aluminum tariffs. Higher Duties in 2026 The proclamation warns of steeper rates from  Jan 1, 2026 , with tariffs on upholstered wooden products rising to  30% , and kitchen cabinets and vanities surging to  50%  for countries without tariff-reduction agreements with the US. National Security Justification Trump argued that heavy reliance on imports threatens the domestic wood industry, which is critical to  defense infrastructure and supply chains . Wood products are used in housing, storage, transportation of munitions, and even in  missile de...