Market Overview - US equity futures are flat as investors await the core PCE report and consider the Fed's next policy move following stronger-than-expected US data [1] - The S&P futures are unchanged while Nasdaq futures drop 0.1%, indicating a potential continuation of recent losses [1] - The Magnificent 7 stocks show mixed performance in premarket trading, with Nvidia being the largest underperformer at -0.8% [1][3] Tariff Announcements - President Trump announced a series of tariffs, including a 100% tariff on branded pharmaceuticals, 50% on housing products, 30% on furniture, and 25% on heavy trucks, impacting various sectors [1][4] - Truckmaker PACCAR saw a gain of over 5% following the tariff announcement on heavy trucks, while shares of several European peers declined [5][6] - The pharmaceutical sector is experiencing mixed reactions, with some companies like Eli Lilly and Merck rising by 1% or more, while Apellis Pharmaceuticals fell by 6.2% after a rating downgrade [5][6] Economic Data and Expectations - Today's economic data includes August personal income and spending, with expectations of a 0.4% increase in both personal income and spending [6][12] - The core PCE price index is anticipated to rise by 2.9% year-over-year, consistent with the previous month, while the headline PCE price index is expected to increase by 2.72% from a year earlier [6][12] - The upcoming inflation report and monthly jobs data are critical for market sentiment, especially in light of the recent tariff announcements [4][6] Sector Performance - Healthcare stocks underperformed following the tariff announcements, particularly in Europe, where the Stoxx Europe 600 index edged higher by 0.3% despite the tariffs [7][20] - Asian stocks fell, with significant declines in chipmakers and Chinese tech shares, as the MSCI Asia Pacific Index dropped by 1% [8] - The technology sector is facing valuation concerns, contributing to a broader market selloff, particularly among large-cap tech companies [4][38] Company-Specific Movements - Concentrix shares slumped by 21% after a disappointing fourth-quarter profit outlook [5] - Intel and GlobalFoundries gained 4% and 9%, respectively, following reports of potential new plans to reduce reliance on overseas semiconductor manufacturing [5] - Wayfair's shares declined by 2% in response to the new tariffs targeting specific furniture products [5]

Market Outlook & Strategy - Diversified portfolios are recommended, with fixed income providing both income and diversification against economic slowdowns [5] - Fixed income is attractive as a hedge against potential slowdowns, especially if the labor market weakens [5][6] - Bond funds are considered sensible, particularly those with exposure to structural AI, strong corporate balance sheets, credit, and duration [7] - Extending duration is advised, potentially banking on a range of 375 to 425 basis points (375%-425%) [19] Interest Rates & Fed Policy - Interest rates are viewed as restrictive, justifying the Federal Reserve's (Fed) rate cuts [4] - The Fed is expected to continue gradually cutting rates, potentially reaching a neutral rate, with debate around whether that rate is 250 or 300 basis points (250%-300%) [17][18] - The current Fed funds rate is at 425 basis points (425%) [18] Labor Market & Economic Uncertainty - Uncertainty around tariffs is causing companies to pause hiring [9] - Risks to the labor market are balanced, with potential for both downside (increased firing) and upside (increased hiring) [12] - A potential government shutdown could further cloud the labor market outlook, especially if it involves layoffs [15] Investment Opportunities - 5-year and 10-year high-grade corporate paper are favored [8] - Opportunities exist in double B and single B high-yield corporate bonds [8] - Investment-grade credit offers a yield of around 550 basis points (550%), while triple B+ bonds yield approximately 650 basis points (650%) [20]

Five things to know ahead of today's opening bell. President Trump threatening the pharmaceutical industry with 100% tariffs unless drug companies manufacture or at least start to build manufacturing plants in the United States. The president also saying that he plans to slap a 25% tariff on imported heavy trucks starting October 1st.Separately, President Trump said yesterday he hopes to take some of the money raised by his tariffs and give it to US farmers. Retaliation to President Trump's tariffs have red ...

After back to back losses, the French market is up in positive territory on Friday with investors picking up stocks, shrugging off U.S. President Donald Trump's announcement of a fresh round of tariffs.Trump announced on Thursday that branded pharmaceuticals imported into the U.S. will be levied a 100% tariff, and heavy-duty trucks will be imposed a 25% levy, effective October 1st. He has also proposed levies on kitchen cabinets, bathroom vanities.and upholstered furniture.The benchmark CAC 40 was up 30.41 ...

Tariffs and Trade Policy - President Trump announced new tariffs, including 100% on branded and patented pharmaceutical drugs, effective October 1 [2][3] - Additional tariffs include 50% on kitchen cabinets and bathroom vanities, 30% on upholstered furniture, and 25% on heavy trucks [3] Economic Indicators - The core personal consumption expenditures (PCE) price index is expected to show a 2.9% year-over-year increase for August, unchanged from July [9] - The overall PCE price index, including food and energy, is projected to increase by 2.7% year-over-year, up from 2.6% in July [9] - Consumer spending is anticipated to rise by 0.4% month-over-month, slowing from a 0.5% increase in July, while personal income is projected to increase by 0.3% month-over-month, down from 0.4% [10] Government Operations and Employment - Federal agencies have been directed to prepare for mass firings if the government shuts down on October 1, affecting programs without alternative funding [4][5] - The Office of Management and Budget (OMB) has instructed agencies to issue reduction-in-force notices for employees in programs inconsistent with Trump's priorities [5][6]

Core Viewpoint - The U.S. will impose significant tariffs on kitchen cabinets, bathroom vanities, and upholstered furniture, indicating a shift in trade policy that could impact related industries and companies involved in manufacturing and importing these goods [1] Group 1: Tariff Details - A 50% tariff will be imposed on kitchen cabinets and bathroom vanities, which may lead to increased costs for consumers and potential supply chain disruptions [1] - A 30% levy will be applied to upholstered furniture, further escalating import costs and potentially affecting retail pricing strategies [1]

Core Insights - The latest U.S. tariffs on imported kitchen cabinets, bathroom vanities, and upholstered furniture have led Chinese vendors in Lecong to largely abandon the U.S. market, indicating a significant shift in their business strategy [1][2][3] Industry Overview - Lecong, known as China's "Furniture Kingdom," features over 180 furniture malls filled with retailers, wholesalers, and distributors, showcasing a wide range of products from plywood tables to plush leather sofas [4] - The town has a historical significance as the earliest furniture market in China, catering to international customers for over 30 years, particularly in the higher-margin European and North American markets [5] Market Challenges - Geopolitical tensions, tariffs, and rising labor and production costs have adversely affected Chinese manufacturers, forcing them to adapt to survive in a challenging environment [6] - The domestic market is experiencing weak consumption due to an economic downturn and a slump in the property market, impacting overall sales [6] Business Adjustments - Companies like Hansen Outdoor Furniture have reduced their workforce significantly and shifted their sales focus, with 60% of products now sold domestically and 40% overseas, primarily to India and Africa [6] - Hanfei Furniture reported average business performance this year, with a notable impact from last year's tariff increases leading to order cancellations from American clients [7] Competitive Landscape - The furniture industry is facing increased competition and a smaller market size, but manufacturers express confidence in their ability to survive despite the challenges [8]

Trade & Tariffs - US to impose new tariffs on imported heavy duty trucks, branded medications, kitchen cabinets, and upholstered furniture, effective October 1st [1] - US Chamber of Commerce disputes national security concerns, noting top import sources are US allies [2] Market & Economy - Major indexes ended in the red despite stronger than expected economic data [3] - Weekly jobless claims came in less than expected, at 218,000 versus 235,000 expected [3] - Markets are focused on fresh inflation data, with the personal consumption expenditures price index due out [4] - Markets are pricing in two quarter point rate cuts this year, dependent on inflation data [4] Legal & Regulatory - Amazon to pay $2.5 billion in settlement with the Federal Trade Commission (FTC) over deceptive practices related to Prime services [6] - $1 billion of the settlement will go to the FTC, and $1.5 billion is expected to be paid out to approximately 35 million consumers [7]

Core Insights - Medtech companies are facing increased tariff uncertainty due to a Section 232 investigation initiated by the Trump administration into medical equipment [1][5] - The investigation began on September 2 and was disclosed by the Department of Commerce [1] - Industry group Advamed is lobbying for exemptions from tariffs, highlighting that 70% of medical equipment used in the U.S. is domestically produced [2] Industry Implications - Advamed's CEO stated that the investigation will demonstrate the strength of U.S. medtech manufacturing and that lower tariffs could lead to increased manufacturing and job growth, benefiting access to lifesaving technologies and reducing costs for hospitals and patients [3] - The investigation encompasses a wide range of medical products, including syringes, IV bags, and complex devices like insulin pumps and imaging machines [4] Potential Outcomes - Major medical device firms, such as Siemens Healthineers and GE Healthcare, have not publicly commented on the investigation, while Philips indicated no immediate operational or financial impact should be assumed [4] - Analysts expect that the investigation may lead to additional tariffs for the medtech industry, potentially following a gradual increase similar to the approach taken with pharmaceuticals [6]

Core Viewpoint - The announcement of a 25% duty on imported heavy trucks by the US government has led to a decline in stock prices for major European truck manufacturers, while companies with less reliance on Mexican manufacturing, like Volvo, have seen stock increases. Group 1: Impact of Tariffs - The US plans to impose a 25% duty on imported heavy trucks starting Wednesday, causing Daimler Truck shares to fall by as much as 4.9% and Traton's stock to drop by 3.1% [2] - The truckmakers have faced increasing trade hurdles, including a 15% duty on cars imported from the European Union, affecting companies like Porsche AG and Volkswagen's Audi [4] Group 2: Company-Specific Responses - Daimler Truck generates about 40% of its global sales in the US, with significant exposure to potential disruptions from tariffs due to its operations in Mexico [5] - Traton has already experienced a slump in deliveries and orders due to tariff uncertainty in the US, leading to a reduction in shifts at its International Motors plant in Mexico [6] Group 3: Competitive Positioning - Volvo AB's stock rose by as much as 3.45% as it is better positioned than its peers, relying less on manufacturing in Mexico, with local content of its US trucks between 60% and 70% [3][6] - Volvo stated that it is premature to assess the potential effects of the tariffs without seeing the actual legislative proposal [7]