MONEY MASTER

Global companies are scaling back or shelving price increases as new US trade deals ease tariff uncertainty and consumer spending weakens, according to a Reuters review of third-quarter earnings calls and disclosures. The shift marks a sharp reversal from earlier in the year, when firms in consumer goods, retail, and industrials cited escalating tariff costs and signalled aggressive price adjustments. Now, with clearer rules of engagement on US trade policy and mounting risks of losing price-sensitive customers, corporate pricing power is fading. Retail giants including Walmart, Target, Home Depot and Lowe’s capped a pivotal Q3 earnings season by outlining divergent strategies to manage softer demand—ranging from widespread discounting to tighter cost control—after the protracted US government shutdown delayed federal benefits and froze economic data flows. Price-Hike Mentions Have Collapsed Reuters tracked  28 companies  explicitly flagging tariff-driven price hikes since Oct...

Amazon’s stock options trading soared Thursday, jumping to over 794,700 contracts —more than double the previous day and well above its 20-day average. This surge landed Amazon among the top seven most active options, joining names like Tesla, Nvidia, and Alphabet. Why the sudden interest? Investors are eyeing  Amazon’s upcoming earnings report next week , which could reveal more about its  AI investments and future spending . What Analysts Are Watching According to Bloomberg Intelligence, Amazon’s earnings may meet expectations, but the spotlight will be on its capital spending. Analysts believe  Amazon will likely stay committed to big investments in Amazon Web Services (AWS) despite a potentially slower second half of the year. Its cloud rival, Alphabet (Google's parent company), recently  raised its 2025 capital spending to $85 billion , a signal that tech companies are ramping up infrastructure for AI and cloud services. Amazon Still a Powerhouse AWS holds about...

Malaysia is pushing to  secure a trade deal with the United States  by the looming  August 1 deadline , targeting the  lowest possible tariff , said  Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz . No to 20% Tariff Zafrul dismissed a  Bloomberg report  suggesting Malaysia was negotiating for a  20% tariff . “No, that is not the direction. The direction is to get as low as possible,” he told reporters on Thursday. While Zafrul admitted he’s  “not that confident”  about achieving a tariff below 20%, he reaffirmed that it remains his  target . Regional Benchmarks Japan : Secured a  15% tariff  by opening markets and committing investments in the US. Philippines : Got a  19% tariff  by agreeing to eliminate duties on US imports. “Every country has different challenges... We can’t offer what we don’t have or what may harm our industries,” Zafrul explained, stressing that Malaysia is seeki...

Hyundai Motor  posted a  16% drop in Q2 operating profit , hit by rising  U.S. tariffs  on vehicles and auto parts. The company warned that the financial pressure from tariffs will intensify in Q3, especially as it awaits clarity on trade negotiations with the U.S. Q2 Financial Highlights Operating Profit:  ₩3.6 trillion (~$2.64B) Down from ₩4.28T YoY Slightly above analyst consensus (₩3.5T, LSEG SmartEstimate) Revenue:  ₩48.3 trillion +7% YoY Beat consensus of ₩47T Tariff Impact (Q2):  ₩828 billion (~$606M) Tariff Pressure Mounts Hyundai said  U.S. tariffs are costing more and will weigh heavier in Q3 . Current tariff:  25% on Korean vehicles Hopes for reduction to match  Japan’s new 15% rate , but  no guarantee  yet. Talks with U.S. Treasury delayed , raising more uncertainty. Market Exposure & Strategy 40%+ of Hyundai’s revenue  comes from the U.S. ~66% of U.S. sales  are from imported vehicles. Hyundai  k...

As uncertainty builds around US trade and fiscal policy, global fixed-income investors are moving east — and not quietly.   Key Stat :   $1.5 trillion  in local-currency bonds issued in Asia Pacific so far in 2025 — a  record high , up 6% YoY. What’s Driving the Shift? The big trigger? President Trump’s  tariff flip-flops , particularly the  April 2 surprise  that rattled global markets. The result: investors are hedging against US policy risk and  diversifying out of dollar assets . “Large inflows from pension and sovereign wealth funds are now flowing into Asia,” says Daniel Tan of Grasshopper Asset Management. And the performance justifies it:   Bloomberg Asia Pacific Aggregate Index  is up  3.9% YTD , outpacing the US equivalent at 3.5%.  Where the Flows Are Going India : ₹6.6 trillion ($76.4B) in corporate bond issuance, a 29% jump YoY China : Over $1T issued locally as firms take advantage of lower borrowing costs Austral...

Gold prices remained  steady  in early Asian trading Monday as investors stayed on the sidelines ahead of two major macro events —  U.S. trade developments  and the  European Central Bank’s (ECB) policy meeting . Gold Price Snapshot Spot gold : Up 0.1% to  $3,353.81/oz U.S. gold futures : Flat at  $3,360.50/oz Despite geopolitical tension and macro uncertainties, price action was limited as traders awaited clarity on both the  U.S.-EU trade front  and the  next policy signal from central banks . What’s Driving Sentiment? Trade Talks in Focus U.S. President  Donald Trump’s Aug 1 tariff deadline  is drawing closer. Commerce Secretary  Howard Lutnick  remains hopeful that a deal with the  European Union  can be reached in time — but markets are cautious. ECB Policy Outlook The  ECB is expected to pause rate cuts  this week and hold at  2.0% , as policymakers adopt a wait-and-see approach amid tar...

Headline GDP: +5.2% YoY | +1.1% QoQ Market Forecast: +5.1% YoY | +0.9% QoQ Official 2025 Target: ~5% Despite escalating U.S. trade threats and persistent domestic challenges, China delivered a  Q2 GDP print of 5.2% , narrowly exceeding consensus. However, analysts warn this may mask growing vulnerabilities in the economy’s core drivers. Key Takeaways Growth Supported by Front-Loaded Exports Robust  export performance  ahead of Trump’s  August 1 tariff deadline  bolstered Q2 numbers. Zhiwei Zhang  (Pinpoint): “Front-loading helped exceed target — gives Beijing space to absorb H2 weakness.” Momentum to Weaken in H2 2025 Reuters poll: GDP seen slowing to  4.5% in 3Q ,  4.0% in 4Q . Structural headwinds: Deflation risk:  PPI in June saw sharpest drop in ~2 years Soft consumer spending:  Retail sales losing steam Property slump deepens:  Investment down  11.2% YoY , home prices fall for 8th straight month Stimulus Expectations Rise ...

Putrajaya Urges Constructive Talks with Washington Amid 25% Tariff Shock Malaysia is urging the United States to return to the negotiating table after Washington’s surprise announcement of a  25% tariff on Malaysian exports , effective  August 1 , raised alarm over potential disruptions to critical trade and investment flows. The  Ministry of Investment, Trade and Industry (MITI)  confirmed that it is maintaining  constructive engagement with US officials and remains committed to reaching a  balanced and mutually beneficial trade agreement . “Dialogue is the best way forward,” MITI stated, emphasizing that unilateral trade actions could harm global  supply chains, investor confidence , and the livelihoods of businesses and workers on both sides. A Relationship Too Big to Break The US stands as  Malaysia’s second-largest trading partner  and  top export destination . In 2024, bilateral trade soared nearly  30% to RM324.9 billion (US$...

Tech-led rally breaks three-day losing streak amid optimism over US trade negotiations Hong Kong stocks staged a modest comeback on Tuesday, ending a three-day slide as investors reacted positively to signals of flexibility in US trade policy. The  Hang Seng Index  edged up  0.3% to 23,960.03 , buoyed by  tech heavyweights  after the US delayed new tariffs on 14 countries, sparking hopes for softer terms ahead. The  Hang Seng Tech Index  gained  0.5% , supported by strong performances from key names: Baidu +2.6%  to HK$88.05 Kuaishou +2.4%  to HK$64.55 Xiaomi +1.7%  to HK$58.20 Tencent +0.2%  to HK$503.00 Market Catalyst: President Trump announced that  25% tariffs on Japan and South Korea  will only take effect on  August 1 , giving room for additional talks. This triggered optimism that similar flexibility could apply to other trade partners like  Malaysia, Indonesia , and  Laos , who are facing ...

Malaysia Engages in Last-Minute Trade Talks as 25% US Tariff Looms Malaysia is racing to resolve trade tensions with the United States after President Donald Trump signaled a potential 25% tariff on Malaysian exports—an escalation from the previously paused 24% rate imposed in April. While Washington appears open to further negotiations, the Ministry of Investment, Trade and Industry confirmed that Malaysia remains committed to finding a mutually beneficial resolution. The goal: avoid steep new duties that could hurt the country’s export-driven economy. Efforts are underway to clarify the scope and potential economic damage from the proposed tariffs. “Malaysia is pursuing a fair and sustainable outcome for both nations,” the ministry said in a statement on Tuesday. Markets reacted quickly. Malaysia’s benchmark stock index slipped as much as 0.7% and technology stocks, particularly those exposed to US demand, came under pressure. The ringgit, however, remained steady. Minister Tengku Za...

Investment Analysis: Tariff Warning Could Accelerate Economic Bloc Divergence President Donald Trump’s latest post-election move to penalize nations aligning with BRICS policies — by proposing a  10% blanket tariff  — marks a significant escalation in global trade and currency realignment tensions. On Sunday night, Trump warned that  any country supporting the "anti-American policies" of BRICS  would face an additional 10% tariff. While no specific timeline or policy parameters were outlined, the announcement coincides with the ongoing BRICS summit where leaders from  China, India, Brazil, South Africa, and Russia  discussed a  cross-border payment system , inching toward  de-dollarization . This raises the stakes for countries caught between US trade access and BRICS alignment, particularly  emerging markets in Southeast Asia, Africa, and Latin America  that have benefitted from both US trade relations and Chinese Belt-and-Road investme...

Markets across Asia saw cautious gains on Tuesday as global investors watched closely for updates on the massive U.S. tax and spending bill. Meanwhile, the U.S. dollar weakened, and gold prices jumped on uncertainty. Key Takeaway: Cautious Optimism Amid Washington Gridlock While  Asian shares edged up , the momentum was tempered by political delays in Washington. Investors had been expecting a vote on  President Trump’s US$3.3 trillion tax-and-spending bill , but prolonged debate over amendments held things back. Japan's  Nikkei slipped as much as 1.1%  as the  yen strengthened , while the  Kospi led gains , up 1.8%. Money Master Take: Risk Assets Pause as Policy Risks Rise The world is watching Capitol Hill. Until the fate of the “ one big beautiful bill ” is sealed, expect  market jitters . While  Asian equities remain resilient , the  weaker dollar  and  gold rally  suggest a rising appetite for safety amid fiscal concerns....

Malaysia has cautiously welcomed the US pause on reciprocal tariffs , but  Trade and Investment Minister Tengku Zafrul  warns that  ASEAN economies remain under pressure  from the unpredictability of US trade policy. What Happened: President  Donald Trump’s decision to delay higher tariffs  on some trading partners offered temporary relief. However, the  escalation of the US-China trade dispute  continues to fuel global market volatility. Malaysia’s Response: “Nothing is certain but uncertainty,”  said Minister Tengku Zafrul, summing up the current US trade environment. The issue will be  a key agenda item at the ASEAN Economic Ministers' Meeting , chaired by Malaysia. Malaysia is committed to  ASEAN unity  in dealing with external trade shocks and seeks  balanced, predictable trade policies . Strategic Moves by Malaysia: Trade diversification:  Exploring new markets and deepening existing ties Economic reforms: ...

  Key Highlights: Trudeau’s Firm Stance: Canadian Prime Minister Justin Trudeau warned that Canada "will respond" if U.S. President-elect Donald Trump imposes  25% tariffs on Canadian imports , emphasizing the significant economic impact on both countries. Historical Context: Trudeau referenced Canada’s  retaliatory tariffs in 2018  during Trump's steel and aluminum tariff dispute, which targeted politically sensitive U.S. products like bourbon, Harley-Davidsons, and Heinz ketchup. These actions, Trudeau said, effectively pressured U.S. officials to lift the tariffs. Economic Implications: Canadian Concerns:  A  25% tariff  on all Canadian exports would devastate the Canadian economy and raise costs for U.S. consumers reliant on Canadian goods. U.S.-Canada Trade:  Canada is the largest market for U.S. exports, with  36 U.S. states  counting Canada as their primary export destination. Trump’s Approach: Trudeau described Trump’s negotiatin...

  Dockworkers have initiated a strike at every major port along the US East and Gulf coasts, signaling potential widespread economic repercussions just weeks before the presidential election. This unprecedented action could disrupt half of all US trade volumes and significantly affect container cargo and auto shipments, although energy supplies and bulk cargo will remain unaffected. The strike commenced at 12:01 AM Eastern Standard Time, and the estimated economic loss due to the shutdown is projected to range from $3.8 billion to $4.5 billion (RM15.7 billion to RM18.6 billion) per day, according to JPMorgan Chase & Co . A prolonged strike could lead to significant backlogs, with Grace Zwemmer from Oxford Economics estimating that clearing a week-long stoppage would take about a month. Union Demands and Negotiation Breakdown The International Longshoremen’s Association (ILA) is demanding higher wages and a rollback of provisions related to automation in their six-year contr...

The US trade deficit expanded to $78.8 billion in July, the largest in two years, driven by a significant increase in imports of goods as companies scrambled to secure supply ahead of potential dockworker strikes and the holiday shopping season. Key Highlights: Increase in Imports and Exports : The trade gap grew by 7.9% from the previous month, with imports rising by 2.1% to their highest level since March 2022, while exports increased by 0.5%. The increase in imports reflects efforts by US companies to stock up on merchandise and industrial products in anticipation of supply chain disruptions due to a potential dockworkers' strike on the East and Gulf Coasts. Impact on GDP : The widening trade deficit suggests that trade will once again be a drag on gross domestic product (GDP), following a significant subtraction from GDP in the second quarter. The Federal Reserve Bank of Atlanta's GDPNow forecast had indicated that trade could reduce third-quarter growth by 0.35 percentage ...