Trade deals are great, but interest rates are still way too high. ...

We are the United States of America and people really thought other countries weren't going to give us better trade deals if we demanded them.Ridiculous. ...

>> WELCOME TO BLOOMBERG MARKETS, I AM SONALI BASAK. WE HAVE GREEN ON THE SCREEN FOR THE DAY. WE ARE NEAR SESSION HIGHS, UP ALMOST 4/10 OF 1% ON THE S&P 500. THE VOLATILITY IS LOW. A VIX AT A 15 HANDLE. IT MAKES GOOD NEWS FOR THE IPO MARKET THAT'S STARTING TO COME BACK. THE 10 YEAR YIELD BELOW FOUR POINT 4%, BUT ONLY AT 4.39%. WE HAVE BEEN WATCHING THE BOND MARKET CLOSELY, PARTICULARLY AT THE LONG END. THE U.S. DOLLAR IS GETTING A LIFT THIS AFTERNOON. .4 PERCENT HIGHER. PRESIDENT TRUMP IS ON HIS WAY TO SCOTL ...

🇺🇸 TRUMP: Says most trade deals will be done by August 1. https://t.co/YkF5Nk9Ylt ...

Market Overview - Asian markets closed down, influenced by nervousness surrounding the August 1st debt trade deadline [3][4] - European markets are generally subdued, with the UK's Footsie 100 falling from recent record levels [4] - US futures show a more positive outlook, potentially influenced by President Trump's softened stance on the Fed Chair [8][9] Trade and Tariffs - The US and UK are refining a recent trade deal, including a pledge to remove 25% tariffs on UK steel and aluminum, while the rest of the world faces a 50% tariff [4][5] - The European Union believes a deal with the US is within reach, potentially involving a 15% levy, but the 50% levy on steel and aluminum may remain [6] - Volkswagen lowered its financial outlook due to escalating costs from US tariffs, adding $15 billion to costs in the first half of the year [17] - Kia's operating profit in the second quarter slumped by $570 million due to US tariffs, with warnings of a potentially bigger impact in the second half of 2025 [19] Federal Reserve and Interest Rates - President Trump seemed to soften his stance on Fed Chair Jerome Pal after a meeting, which investors took positively [9] - The Fed is expected to keep rates on hold at the next meeting, despite President Trump's desire for rate cuts [9][10] - There are concerns about the Fed's independence, particularly regarding the selection of the next Fed Chair, with potential pressure to cut interest rates [13][14] - The current inflation rate is above the Fed's target of 2%, with potential for it to rise in the coming months [16] Company Specific News - The US regulator approved the $84 billion merger of Paramount and Sky Dance [6] - Puma's shares sank more than 18% after posting a 2% decline in sales for the second quarter to $227 billion, citing the impact of US tariffs [37] - LVMH's shares jumped after analysts suggested the worst is likely over for the luxury group, despite a 4% fall in revenue in the first half to 398 billion euros (approximately $47 billion) [39] - Intel's shares fell after reporting mixed second-quarter results, with revenue of $128 billion beating estimates but announcing a loss of 10 cents per share [41] Investment Strategies - Cyclical stocks are soaring, while defensive stocks are lagging [23] - Defensive sectors now make up only 20% of the S&P 500, while Nvidia and Microsoft alone account for 15% [28][29] - Open Door is presented as a turnaround story rather than a meme stock, with potential for significant gains [51][60]

💥BREAKING:TRUMP SAYS MOST TRADE DEALS WILL BE DONE BY AUGUST 1ST, IF NOT ALL. https://t.co/kF5qznTv7A ...

US-Japan Trade Agreement - The US and Japan have reached a trade agreement involving reciprocal tariffs, particularly on autos, with Japan proposing an innovative solution involving equity, credit guarantees, and funding for major projects in the US [5][6] - Japan will provide new capital targeted at strategic industries in the US to de-risk supply chains, especially in areas like medicine and semiconductors [6][7] - The agreement includes a 15% tariff rate for Japan, specifically for reciprocal tariffs on autos, which is linked to Japan's innovative financing mechanism [5][6] - The 15% tariff rate for Japan is considered a result of their innovative package, with President Trump pushing them to do even more [10] US-EU Trade Relations - The EU has not yet presented an innovative package similar to Japan's, but trade talks are progressing [11] - The EU is reportedly preparing to impose 30% tariffs on €100 billion (approximately $107 billion USD) worth of goods if no deal is reached [12] - The US views itself as a deficit nation compared to the EU's surplus, suggesting that trade escalations would impact the EU more [13] US-China Trade Relations - The US is in a good place with China and can start moving on to bigger discussions, with the potential for a rebalancing of the US-China relationship [14][15] - The US aims to bring back precision manufacturing and wants China to become more of a consumption economy [15] - Discussions with China will include purchasing agreements, especially for agriculture, with a focus on rebalancing the trade relationship [16][17] - Regular meetings with China are planned, with no desire to decouple but a need to de-risk part of the US supply chain [19] Federal Reserve and Monetary Policy - The Treasury Secretary believes the Federal Reserve's analysis of tariffs is off, as they have seen very little price pressure from tariffs [26] - The Treasury Secretary suggests the Federal Reserve should conduct an internal review to separate monetary policy from other activities [31] - The Treasury Secretary believes that regulation has been too stringent since the great financial crisis, leading to a build-up outside the regulated financial system, with private credit up ten times [36]

The market is trading like this is really good news. This Japanese the US trade deal. Carmakers in Japan are up by more than 14%, 15%.Is that not a good deal. Look, you're right. I have been very frustrated and I write this morning not as much caffeine as normal.So first of all, for automakers, it is a good deal. And I think actually that you've identified the key point of why this is particularly good for Japan, because I think suddenly it's making Japanese carmakers much more competitive against U.S. carm ...

Trade & Investment - Certainty in trade deals is crucial for investment [1] - Global diversification can build a more resilient economy [1] Company Strategy - Siemens CEO emphasizes the need to stop uncertainty [1]

Are you confident we can get these big the big ones the big deals done. I have them done. The question is President Trump drives the strongest bargain.He's the dealmaker. He makes the deals. This morning he was on with the president of Indonesia and he makes the deals.That's how this administration works. We let the greatest deal maker who's ever been in that office. He makes the deals. ...