Trade Policy Impact - Trump's trade policies are negatively impacting steelmakers globally [1] - Mexico, Brazil, and Canada are retaliating against the US [1] Target Scope - The US is not the only target of these retaliatory measures [1]

Overview - Jerome Cohen 对中国人民有强烈的接触渴望，并花费数十年影响中国的法律、贸易和人权政策 [1] Industry Impact - Jerome Cohen 在中国法律、贸易和人权政策领域具有深远影响 [1]

Geopolitical Relations - China and India are aiming to strengthen ties amidst unpredictable U S trade policies [1] - Both sides express hope for better relations and seek to dispel interference and accelerate cooperation [2] - A difficult period in China-India relations prompts both nations to seek a candid and constructive approach [2] - Wang Yi's visit to India is the first in three years, signaling an effort to repair the relationship [5] Trade and Economic Factors - U S trade policies, including concerns over Indian purchases of Russian oil, have strained relations between Washington and New Delhi [4] - This situation presents an opportunity for improved relations between China and India [4] - China views the U S action on the trade front as overwhelming bullying [7] Diplomatic Engagements - Wang Yi is scheduled to meet with India's national security advisor Ajit Doval and Prime Minister Narendra Modi [5] - Modi's potential attendance at the Shanghai Cooperative Organization annual meeting in Tianjin offers an opportunity to meet with Xi Jinping for the first time in seven years [6] Border Disputes - India and China are working through border differences that have caused frosty relations in the past [5]

Investment Trends - Hedge funds increased their exposure to technology giants like Microsoft and Netflix during the second quarter [1] Market Conditions - The second quarter experienced an initial surge in volatility due to President Trump's trade policies [1]

Economic Indicators & Job Market - The White House acknowledges that recent job numbers were not as strong as expected, attributing downward revisions to statistical quirks like seasonal adjustments, with approximately 60% due to changing seasonal factors [2][3][4][5] - The report indicates a softening in the labor market, with potential contributions from border policies and uncertainty surrounding immigration policies affecting hiring decisions [6][9][10] - There's a modest decline in manufacturing employment and a more significant decline in manufacturing activity, raising concerns about the economy not delivering on promises of increased manufacturing and manufacturing jobs [11] Trade Policies & Tariffs - The original promise of 90 trade deals in 90 days was not met, with only 8 to 10 negotiated frameworks achieved, while some countries may receive extensions or return to the negotiating table [13][15] - Markets have become accustomed to tariff rates of 10%, with many countries facing rates closer to 15% to 20%, a significant increase from the previous rate of approximately 25% [18][19] - The tariffs have generated approximately $100 billion in revenue, but their effectiveness in creating jobs and boosting manufacturing in the US remains unproven [20] - The president's approach faces an inherent contradiction: high revenue collection implies continued imports, while successful relocation of production to the US would reduce imports and revenue [21][22] Legal & Political Challenges - The legality of the tariffs is being questioned, with potential challenges leading to a Supreme Court review that could take months or even a year to resolve [28] - If deemed unconstitutional, the US would no longer be able to collect the tariffs, though it's unclear if past tariffs would be refunded [29] - The Fed faces a dilemma with conflicting data: rising inflation potentially driven by tariffs versus softening job numbers, making it difficult to decide whether to cut rates [30][31]

Economic Outlook - Economists have reduced their pessimism regarding the impact of U S trade policies on U S economic growth and inflation in the near term [1]

Economic Vulnerability - Vietnam's economy is vulnerable due to its reliance on exports to the US and investments from companies leaving China [1] - US President Trump's trade policies and escalating tensions between the US and China have highlighted this vulnerability [1] - Vietnam faces potential setbacks to its goal of becoming a developed country by 2045 due to its export-led growth model [2] Trade Relations with the US - Vietnam has the third largest surplus with the US [2] - Vietnam was hit with a 46% tariff rate [2] - Trump's actions serve as a wake-up call for Vietnam [2] Economic Diversification and Reforms - The Communist Party is seeking to re-engineer the country's economic model to reduce dependence on the US [3] - Efforts are underway to diversify export markets and boost the domestic market through reforms [3] - Economic reforms could mitigate the impact of tariffs on Vietnam [3]

Economic Outlook - BIS warned that resurgent US inflation could unfold as the world economy reels from Donald Trump's disruptive trade policies [1]

Core Viewpoint - Nvidia's stock has historically presented buying opportunities after significant declines, and the current situation appears to be similar, with a potential rebound expected before the earnings announcement on May 28 [1]. Group 1: Earnings Performance - Nvidia has a strong track record of exceeding earnings expectations, having beaten consensus estimates by at least 5% in each of the last four quarters [3]. - The upcoming earnings report on May 28 is anticipated to act as a catalyst for the stock, as quarterly updates often influence share prices positively [2]. Group 2: Customer Insights - Major customers like Amazon, Microsoft, and Google have expressed positive sentiments regarding Nvidia's products, indicating strong demand for its AI chips and GPUs [6][7][9][10]. - Amazon's CEO noted aggressive installations of Nvidia AI chips, while Microsoft highlighted demand outpacing capacity for AI services, suggesting a favorable outlook for Nvidia [7][9]. Group 3: Product Demand - Nvidia's new Blackwell GPUs are experiencing "extraordinary" demand, with $11 billion in revenue reported, marking the fastest product ramp in the company's history [11]. - The company plans to launch the Blackwell Ultra GPU in the second half of the year, with expectations for a positive outlook regarding next-generation chips in the upcoming earnings report [12].

Financial Data and Key Metrics Changes - Net sales for Q1 2025 were $1.27 billion, down 2% on a constant currency basis [22] - Adjusted EBITDA was $276 million, up 2% on a constant currency basis [22] - Adjusted earnings per share increased by 4% as reported and 9% on a constant currency basis, reaching $0.81 [22][24] - Adjusted EBITDA margin improved to 21.7%, up 80 basis points from the previous year [24] Business Line Data and Key Metrics Changes - Food segment net sales were $852 million, up 1% on an organic basis, driven by pricing actions and marginal volume growth [25] - Protective segment net sales were $420 million, down 8% organically, primarily due to volume declines of 6% [26] - Food adjusted EBITDA was $203 million, up 7% as reported and 10% in constant currency, with an adjusted EBITDA margin of 23.8%, up 200 basis points [25][26] Market Data and Key Metrics Changes - The industrial food processing markets were relatively flat compared to the previous year, with the South American cattle cycle remaining strong [14] - In North America, the beef market performed slightly better than expected, while pork and turkey markets were weaker [14] - Box shipments in the U.S. were down low single digits in Q1, reflecting declining consumer confidence [19] Company Strategy and Development Direction - The company is focused on transforming its operations by reorganizing into two market-focused businesses: Food and Protective [5][6] - There is an emphasis on enhancing leadership and aligning commercial, innovation, and supply chain teams to better serve customers [6] - The company is actively reviewing its supply chain to mitigate potential tariff impacts and minimize inflation [7][8] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious approach due to a potentially weakening demand environment and ongoing trade policy uncertainties [10][11] - The company expects to gain more visibility into trade policies and market demand as the year progresses [12] - Management reaffirmed full-year guidance, anticipating modest volume softness but offset by improved foreign exchange outlook [30] Other Important Information - The company is targeting to drive net debt to adjusted EBITDA to approximately 3.0 times by the end of 2026 [28] - Cash flow was a use of $12 million in Q1, compared to a source of $78 million in the same period last year [28] Q&A Session Summary Question: What specific progress is being seen in the Protective segment? - Management indicated that volumes were down 6% in Q1 but noted that large customer churn has minimized since Q1 2024, leading to expected sequential improvement [35][36] Question: How is customer satisfaction being measured? - Management confirmed that customer satisfaction is being tracked through feedback and direct engagement with distribution partners, showing improvement but still needing work [44][46] Question: What is the outlook for pricing in the Protective segment? - Management noted that net price realization remains relatively unchanged, with competitive pressures affecting pricing dynamics in the Protective segment [54][56] Question: What are the volume assumptions for the second half of the year? - Management stated that they expect a modest volume decline of about 1% in the Protective segment for the second half [82] Question: How much of the equipment materials are sourced domestically? - Management indicated that most equipment materials are sourced domestically, with limited exposure to tariffs impacting equipment sales [86]