Trade Policy Developments - Former President Donald Trump announced a new 10% tariff on Canadian goods, citing an anti-tariff advertisement from Ontario as the catalyst for this decision [2][3] - This new tariff adds to existing tariffs, including a 35% base tariff on many Canadian goods, 50% on steel and aluminum, and 25% on automobiles [3] Market Reactions - Despite the announcement of new tariffs, the TSX Composite Index rose by 166.79 points to 30,353.07, indicating resilience in Canadian markets [4] - U.S. futures and Asian equities surged following the announcement of a substantial trade framework with China, with major U.S. indices experiencing significant gains [6] U.S.-China Trade Relations - High-level talks in Kuala Lumpur led to a substantial framework for a trade deal between the U.S. and China, averting previously threatened 100% tariffs on Chinese goods [5] - Analysts predict that the U.S.-China trade framework could ignite a global market rally, providing optimism for investors [11] Canadian Trade Dynamics - Canadian trade representatives expressed frustration over the new tariffs, with some suggesting that businesses should prepare for a permanent 5-10% tariff [12] - The contrasting U.S. approach towards Canada and China highlights the unpredictable nature of Trump's trade agenda [13] Strategic Partnerships in Southeast Asia - Trump's visit to Southeast Asia resulted in trade agreements with Malaysia and Cambodia, aimed at diversifying supply chains away from China [10] - Malaysia's rare earth deposits position it as a key partner in U.S. efforts to reduce dependence on Chinese resources [10]

Economic Impact of Tariffs on Lutu - Lutu's textile industry, a key economic driver alongside diamonds, faced significant challenges due to tariffs imposed by the US, leading to a downgraded growth forecast [6][7] - The tariffs and the expiration of the African Growth and Opportunity Act (AGOA) had a crushing effect on Lutu's economy [4][5] - Lutu's unemployment rate in 2024 was 30%, and the tariffs exacerbated the situation by inducing layoffs [12] - The US imported over 235 million USD worth of goods from Lutu last year, representing about 11% of Lutu's total GDP [8] - 47% of Lutu's exports are clothing sold by retailers such as Walmart and Levis's [9] Trade Imbalance and Policy - Lutu imported less than 3 million USD in goods from the US last year, highlighting a trade imbalance that made Lutu a target for tariffs [10] - The Prime Minister of Lutu declared a 2-year state of disaster for his country's economy after the tariffs were put in place, seeking tariff reduction to 10% or zero [3] - Kenya's tariff rate of 10% is lower than Lutu's, making it more attractive to foreign investors [14] Potential Opportunities and Perspectives - Despite the negative impact, some see the situation as an opportunity for Lutu to become better known and to focus on producing high-quality goods [23][24] - The situation highlights the importance of market access and trade policies like AGOA for the economic growth of developing countries [18] - Strengthening economic relationships through trade can also enhance geopolitical ties and global stability [22]

International Relations & Trade Policy - US-Canada relations are strained due to a perceived slight from a Canadian advertisement, leading to potential trade policy implications [1][2] - The US President's reaction to the advertisement is described as easily triggered and capable of influencing international policy [2] - The timing of the dispute coincides with Game One of the World Series in Toronto, potentially exacerbating tensions [3][4] - Tariffs and trade with China are also a point of focus, with the President scheduled to meet with Xi Jinping to discuss trade [2] - The legality of the tariffs is currently under review by the Supreme Court [3] Political Sentiment & Public Perception - The American national anthem is expected to be booed at the World Series game in Toronto, reflecting negative sentiment [4] - The situation is occurring at a time when US-Canada friendship should be celebrated [4]

Group 1: U.S.-China Trade Relations - The U.S.-China relationship is experiencing increased tension, with President Trump considering a cooking oil embargo against China due to its refusal to purchase U.S. soybeans, which has led to volatile stock market trading [1][5] - China was the largest buyer of U.S. soybeans last year but has not made any purchases since May, amid ongoing trade disputes [5] - The White House has threatened a new 100% tariff on China following its export restrictions on rare earth materials, with future actions from China determining the implementation of these tariffs [5] Group 2: Boeing's Performance - Boeing is on track for its highest annual plane delivery count since 2018, having delivered 55 aircraft in September, totaling 440 for the first nine months of 2025 [6] - The company has stabilized its production following previous safety and production crises, with plans to increase production of the 737 Max planes [6] - Boeing received approval from EU antitrust regulators for its $4.7 billion acquisition of Spirit AeroSystems, agreeing to sell some of Spirit's businesses to address competition concerns [7] Group 3: Cryptocurrency Seizure - The Justice Department seized approximately $15 billion worth of bitcoin from Chen Zhi's cryptocurrency wallets, who is accused of running a large-scale fraud operation in Cambodia [9] - This seizure represents the largest forfeiture action sought by the DOJ [9]

All right, we got to talk to you about it. Um, shutdown just in in its ninth day. Uh, we got that data from Moody's that we always bring up.For every week of the government shutdown, quarterly GDP is impacted by a tenth of a percent. What's the impact on the manufacturing sector. Are there certain parts of it that are impacted more than others.Well, I think overall, Frank, the business community in general, but certainly manufacturing depends on certainty and uh having this kind of uncertain time where we d ...

Group 1: Global Trade and Economic Outlook - The World Trade Organization has reduced its 2026 forecast for global merchandise trade volume growth to 0.5% from 1.8%, attributing this to the anticipated lagged effects of U.S. tariffs [1] - Economic data indicates that U.S. consumer credit rose by only $0.36 billion in August, significantly below the expected $12.90 billion [2] - Germany's industrial production fell by 4.3% month-over-month in August, much worse than the expected decline of 1.0% [11] Group 2: Market Performance and Sector Movements - Wall Street's three main equity benchmarks closed lower, with notable declines in chip stocks such as Lam Research and Applied Materials, both dropping over 5% [4] - Homebuilder stocks also faced a downturn after Evercore ISI downgraded the sector, with D.R. Horton falling more than 6% [4] - The Euro Stoxx 50 Index increased by 0.36%, driven by gains in mining and bank stocks, while automobile stocks, particularly BMW, fell over 7% due to lowered earnings guidance [9][10] Group 3: Federal Reserve and Interest Rates - Fed officials are divided on the urgency of further rate cuts, with the FOMC having cut interest rates last month for the first time this year [6][7] - Fed Governor Stephen Miran supports continued easing of policy, while Minneapolis Fed President Neel Kashkari warns that sharp cuts could fuel inflation [2] Group 4: Corporate News and Earnings - Advanced Micro Devices rose over 1% in pre-market trading after an upgrade from DZ Bank [14] - Penguin Solutions tumbled over 22% in pre-market trading due to weaker-than-expected revenue and below-consensus guidance for FY26 [15]

Core Insights - The U.S.-China relationship is entering a critical phase as the Trump administration aims for a more favorable trade policy with China [1] - The U.S. has leverage in trade discussions due to its strength in aircraft engines, parts, and certain chemicals, which are essential for China [1] - Companies in aerospace and semiconductor sectors may experience both risks and opportunities due to the shifting policy environment [2] Aerospace Sector - The U.S. holds a significant advantage in the aerospace industry, as aircraft engines and parts are not easily substituted, making China reliant on U.S. and European manufacturers for aviation technology [3] - This reliance could lead to increased government support for American aerospace companies through contracts or preferential trade treatment, enhancing investor confidence [3] Semiconductor Sector - The production of high-performance semiconductors is currently concentrated in Taiwan, posing a risk to the global economy [4] - The U.S. is actively working to boost domestic semiconductor production, with the 2022 CHIPS and Science Act allocating over $52 billion to enhance capabilities [4] - Companies involved in domestic chip production, materials, and equipment may benefit from new capital inflows as a result of these initiatives [5] Risks for Companies Tied to China - Businesses that are heavily dependent on China for exports or critical inputs face vulnerabilities and potential disruptions due to the changing trade dynamics [6]

[Music] [Music] The Trump administration may roll out what it calls substantial support for American farmers who have suffered losses due to trade policy. Now, let's hear directly from the farm. Blake Hurst joins us.He is former president of the Missouri Farm Bureau and a farmer. Blake, welcome to the show. Um, I want to start off kind of bigger picture, Blake, because I'm curious to hear how the American farm economy is doing right now, Blake.You know, broadly, how is it is it holding up. What is your sens ...

And welcome back to Squawkbox. Our exclusive Q3 CFO survey is back with insights from the biggest corporate financial decision makers. Managing risk always top of mind.26% said US trade policy that's the biggest risk to their business. Also the top answer. You can see here consumer demand a close second at 22%.We also asked their views on a possible recession. Wide range of answers here. More than 7%.They see a recession still being a possibility this year. Roughly half see the potential for a major economi ...

Core Viewpoint - The Federal Reserve has cut interest rates for the first time since December 2024, leading to discussions and speculation about future rate cuts in 2025 [2][3]. Group 1: Federal Reserve Actions - The Federal Open Market Committee (FOMC) has made a significant decision to cut rates, marking a notable shift in monetary policy [2]. - There is a high expectation for further rate cuts in 2025, creating uncertainty in the market [3]. Group 2: Market Reactions and Conditions - The current market environment is described as both opportunistic and dangerous, with a focus on managing risk rather than following crowd behavior [5][6]. - A significant concentration of wealth in a few stocks is noted, with nearly $4 out of every $10 in an S&P 500 Index ETF invested in just 10 stocks, raising concerns about market stability [6]. - The job market's weakness is a primary concern for the Federal Reserve, which could impact 401k inflows and overall market dynamics [6]. Group 3: Trade and Investment Concerns - Uncertainty surrounding trade policy, particularly tariff issues, is seen as a barrier to confident investment decisions [6]. - There are lingering concerns about the reliability of non-U.S. buyers of U.S. Treasury bonds, which have historically supported U.S. debt [6].