Recent curbs on computer chips and rare earths are feeding broader fears about deindustrialisation https://t.co/6K00svZW2r ...

Joining us now to break down the winners and the losers or what we know and what we don't from these negotiations, former assistant US trade representative for China affairs, Jeff Moon. Jeff, it's great to have you here. I mean, look, there seems to be a lot of things that were said, but also a lot of details that are left unsaid.Trump is saying the meeting was amazing. When I look at this, it looks like maybe we're just back to around where we were in August for some of these things. rare earths I get is a ...

Currency Market Insights - The U.S. dollar is experiencing a third consecutive daily loss against the euro, while it is slightly increasing against the yen due to ongoing U.S.-China tensions and dovish comments from Federal Reserve officials [1] - The dollar index is down 0.05% at 98.64, indicating a potential weekly decline of around 0.3% [2] - U.S. Treasury yields are near multi-week lows, with the benchmark 10-year yield just above 4%, which is putting pressure on the dollar amid concerns over a prolonged U.S. government shutdown [3] Rare Earths and Trade Relations - Investors are closely monitoring China's recent expansion of rare earth export controls, which has been criticized by U.S. officials for potentially disrupting global supply chains [5] - There is speculation that China's export controls may be a bargaining tactic to gain concessions from the U.S. [5] - The escalation in Sino-U.S. trade tensions is prompting reactions from European governments, highlighting the potential impact on global supply chains and European output [6] European Political Developments - The euro reached a one-week high, increasing by 0.09% to $1.1651, following the survival of French Prime Minister Sebastien Lecornu in a no-confidence vote [7]

Core Insights - Financial markets experienced a significant downturn due to President Trump's announcement of a 100% tariff on China, which may adversely affect the U.S. economy more than intended [1][2] - The S&P 500 index fell by 2.7%, marking its worst performance since April 10, while the U.S. dollar index dropped nearly 0.7% and gold prices increased by over 1.5% [2] - China maintains a dominant position in the rare earths market, producing over 90% of the world's processed rare earths, which gives it leverage in trade negotiations with the U.S. [3] Market Reactions - The recent tariff announcement led to a notable divergence between the dollar and gold, with gold becoming the preferred safe haven instead of the dollar, contrary to historical trends [3][4] - The dollar's stability was disrupted following the tariff announcement, indicating increased vulnerability compared to early April [4][5] - The decline in the dollar amidst a stock market selloff is concerning, as typically, the dollar would strengthen during such times [5] Trade Relations - Prior to the tariff escalation, U.S.-China trade talks were progressing positively, with agreements reached with other major trading partners [5] - Ongoing tensions remain, particularly regarding rare earths and semiconductor-related products, with the U.S. imposing port fees on Chinese ships, leading to reciprocal actions from China [6]

Geopolitics & Trade - The meeting between Trump and Xi will cover sensitive topics including TikTok, Boeing, rare earths, and Taiwan [1] Industry Specifics - Boeing's inclusion suggests potential discussions on trade relations and aircraft sales [1] - Rare earths highlight concerns about supply chains and strategic resources [1] Technology - TikTok's presence indicates ongoing scrutiny and potential regulatory challenges for the social media platform [1]