MONEY MASTER

  Key Takeaways for Investors: Tariff Impact Hits Debt Markets:  Auto bonds slumped on Thursday after  President Trump imposed 25% tariffs on imported vehicles , set to start April 3. Yields widened as investor concerns over higher vehicle costs and potential profit erosion intensified. VW & BMW Bonds Under Pressure: Volkswagen’s 5.35% 2030 bonds , issued just last week, saw their spreads widen by 24 basis points to 135 bps. BMW’s 5.4% 2035 bonds  also weakened, with spreads rising 6 basis points to 122 bps. Bonds from  Honda and GM  showed similar lagging performance. Auto Debt Trails Broader Market: Spreads on high-grade auto bonds have  widened 26 bps YTD , more than  double the 10 bps widening  in the overall high-grade corporate bond market. Automakers like  Volkswagen, Toyota, Mercedes-Benz, and Hyundai  are most exposed to rising funding costs. Primary Market Cooling Off:  French parts supplier  Forvia SE  ...

  Key Takeaways for Investors: New 25% Tariff on All Auto Imports:  President Donald Trump signed a proclamation to impose  25% tariffs on all imported cars , effective  April 3 . The move escalates trade tensions and is expected to  raise car prices  for US consumers. Canada & EU in the Crosshairs:  Trump warned of even  steeper tariffs on Canada and the EU  if they coordinate economic actions against the US. Canada, which sent nearly  US$35 billion in auto exports  to the US last year, is likely to be hit hard. Tesla Gains from Domestic Production:   Tesla is seen as the biggest winner  in this tariff war. Its EVs are  manufactured in Texas and California , largely shielding it from the auto import levies. Ford may fare better than foreign brands too, with 80% of its US sales made domestically. Wall Street M&A Slows:  Despite hopes of a Trump-era dealmaking boom,  only seven US$10B+ deals  hav...

  Key Takeaways: Trump’s 25% import tariff on cars and light trucks , expected to take effect next week, could  push US car prices even higher , especially affecting  low-cost models  built overseas by brands like  GM, Ford, Kia, and Hyundai . Americans already face rising vehicle costs , and the latest tariffs risk further  squeezing consumers  and disrupting  automotive supply chains , particularly at the  entry-level market segment . Mexico, Japan, and South Korea , the largest sources of US car imports, will be among the  hardest hit . The  EV market could see selective benefit , with at least one electric carmaker poised to gain from the shake-up. Market Reaction : Shares of major automakers, including  Toyota, Mercedes-Benz, and GM , fell as investors weighed the impact of worsening  global trade tensions . Despite calling these tariffs “permanent,” Trump has recently backtracked on some trade threats —  offerin...

President Trump’s new 25% import tariffs on foreign cars  are poised to deal a major financial hit to Germany’s top carmakers — with  Porsche AG and Mercedes-Benz Group AG  taking the brunt of the impact. What’s Happening: New tariffs take effect April 3 , potentially slashing around  25% of Porsche and Mercedes’ 2026 projected operating earnings , according to Bloomberg Intelligence. The  estimated hit: €3.4 billion (US$3.7 billion or RM16.2 billion) . Automakers may have to  raise prices or shift more production to the US  to absorb the blow. Market Reaction: Porsche shares fell 5% ,  Mercedes down 5.2% ,  BMW -4.9% ,  Volkswagen -4.3% , and  Aston Martin tumbled 8.9%  in London. The tariffs  threaten Europe’s export-heavy auto industry , particularly  German brands , which ship a large portion of their high-margin vehicles like the  Porsche 911  and  Mercedes S-Class  to the US. Industry Concern...

The new 25% auto tariffs announced by US President Donald Trump have significantly reduced the likelihood of the Bank of Japan (BOJ) raising its benchmark interest rate at its upcoming board meeting on May 1, 2025. The tariffs, which are set to go into effect on April 2, 2025, are expected to place a considerable burden on Japan's key automotive sector and could ripple across other industries. Key Insights: Impact on BOJ's Rate Decision : Analysts, including Atsushi Takeda from the Itochu Research Institute, argue that the BOJ is unlikely to raise interest rates in May due to the economic uncertainties created by the tariffs. The central bank needs more time to assess the impact of the tariffs on Japan’s economy, particularly on the automotive sector, which plays a crucial role. Effect on Japan's Economy : The tariffs will primarily affect Japan's auto sector, which constitutes a substantial portion of its exports to the US, making up over one-third of Japan’s exports t...

U.S. President Donald Trump has signed an order to impose a 25% tariff on all foreign-made cars, a move designed to bolster domestic manufacturing and challenge global trade imbalances. The tariffs, effective April 2, are part of Trump’s ongoing effort to bring more jobs back to the U.S. and shrink the trade deficit. Trump stated, “What we are going to be doing is a 25% tariff on all cars that are not made in the US,” adding that the tariffs are permanent and would be a major step in reorienting global trade policies. The president has argued that the U.S. has been losing manufacturing jobs to countries like Mexico and Canada, and this move is designed to protect American workers and businesses. The U.S. is projecting that the new tariffs will generate  US$100 billion  in new annual revenue, and the move is expected to cause a significant disruption in the global automotive industry. The tariffs will apply to vehicles imported from major trading partners such as Japan, Germany...

Asian markets took a hit Thursday as U.S. stocks dropped following President Donald Trump’s announcement of a 25% tariff on all foreign-made vehicles, escalating the global trade war and raising concerns about inflation. Key Market Movements: Japanese Stocks : The Nikkei plunged  1.2% , with major losses in the automotive sector, notably  Toyota Motor down  3.4% ,  Mazda  and  Subaru  both falling about  6% . South Korean Stocks : The Kospi dropped  0.7% , affected by heavy losses in local automakers, which have significant exposure in the U.S. market. Chinese EV Makers : Shares of  Nio  and  Xpeng  fell by  2.8%  and  1.1% , respectively, contributing to a  0.3% drop in  China's blue-chip index  and  Hong Kong's Hang Seng . U.S. Futures : Nasdaq futures declined  0.2% , while S&P 500 futures were down  0.1% . Wall Street had already ended lower, with the  Nasdaq  ...

Japan is preparing to reopen trade negotiations with the United States under President-elect Donald Trump, with a focus on eliminating tariffs on automobiles and auto parts, according to Japanese Foreign Minister Takeshi Iwaya. Key Points: Tariff Negotiations in Focus : Iwaya confirmed in parliament that the U.S.-Japan Trade Agreement from Trump’s first term included provisions to revisit auto tariff eliminations. These items were listed in an annex for future negotiations. Economic Stakes : The U.S. was Japan's largest export destination in 2023, with cars and auto parts accounting for one-third of Japan’s total shipments to the U.S., according to Japan’s Finance Ministry. Protectionist Concerns : Trump has proposed additional tariffs of 10%-20% on all imported goods, including those from Japan. This has raised concerns in Tokyo about the potential impact on its export-driven economy. Strategic Preparations: Government Strategy : "We must carefully gather and analyze informat...