1. Asia markets trade mixed as investors digest Trump’s fresh tariff threats: Markets Wrap
Asia-Pacific markets traded mixed Wednesday after losses on Wall Street as investors weighed weaker-than-expected economic data as well as fresh tariff comments from U.S. President Donald Trump. Asia Pacific markets ended the trading day in the green. Japan’s benchmark Nikkei 225 added 0.6% to 40,794.86, while the Topix added 1.02% to end the trading day at 2,966.57. Australia’s S&P/ASX 200 closed 0.84% higher at 8,843.7. Mainland China’s CSI 300 ended the 0.24% higher at 4,113.49.
2.S&P 500 closes higher Wednesday as Apple lifts market
Stocks rose Wednesday, thanks to a jump in Apple, as investors analysed the latest batch of corporate earnings. The S&P 500 gained 0.73% to close at 6,345.06, while the Nasdaq Composite advanced 1.21% and settled at 21,169.42. The Dow Jones Industrial Average rose 81.38 points, or 0.18%, ending at 44,193.12. Apple climbed 5% after a White House official confirmed to CNBC that the iPhone maker is going to boost its investment in domestic manufacturing by $100 billion. That brings its total U.S. investment to $600 billion over the next four years. Those moves follow a losing day for the market, marking the S&P 500′s fifth down day of the last six and the Dow’s sixth negative session of the past seven.
3. Gold eases on profit-taking; eyes on Trump’s Fed picks
Gold prices eased on Wednesday as investors booked profits after prices hit a near two-week high in the previous session, while the market’s focus shifted to U.S. President Donald Trump’s upcoming Federal Reserve nominations. Spot gold fell 0.2% to $3,373.59 per ounce by 02.00 p.m. ET (1800 GMT). U.S. gold futures settled flat at $3,433.4. Gold logged gains for three consecutive sessions after weaker-than-expected U.S. employment growth data on Friday. Market participants now see a more than 93% chance of a September rate cut, up from 63% earlier, according to CME FedWatch.
4. Oil prices seesaw as Rubio questions potential Russia sanctions
Oil prices pared earlier gains and eased to fresh five-week lows after U.S. Secretary of State Marco Rubio indicated there would be an announcement later on Wednesday on whether potential sanctions against Russia over its war in Ukraine would proceed this week. Brent crude futures were down 40 cents, or 0.59%, to $67.24 a barrel at 2:04 p.m. ET, while U.S. West Texas Intermediate (WTI) crude fell 51 cents, or 0.78%, to $64.65. Prices had risen earlier in the session on supply and demand worries after Trump issued an executive order imposing an additional 25% tariff on goods from India, saying it directly or indirectly imported Russian oil. India, along with China, is a major buyer of Russian oil. A larger-than-expected U.S. crude storage draw last week also boosted prices.
5. Trump faces a variety of choices as he seeks to fill Fed vacancies
Federal Reserve Governor Adriana Kugler’s surprise resignation last week brought back a scenario that seemed to be fading but could have important ramifications for how the central bank conducts policy. With the open seat on the influential central bank board, President Donald Trump now has a number of strategic options, including one where he could appoint a so-called shadow chair whose job would be largely to serve as an instigator until a successor to current Chair Jerome Powell could be named. This in turn raises the tantalizing possibility that an institution historically known for collegiality and an ivory-toweresque approach to policy now will have to deal with a sudden dose of political intrigue.
6. India’s central bank keeps rates steady at 5.5% as Trump ratchets up tariff threats
India’s central bank kept its policy rate steady at 5.5% Wednesday in the face of rising tariff threats from U.S. President Donald Trump. The move was in line with expectations from economists polled by Reuters, and comes after the Reserve Bank of India delivered an outsized cut of 50 basis points at its last meeting in June. RBI Governor Sanjay Malhotra, in his monetary policy statement, said the decision was unanimous. He noted that while global trade challenges lingered, geopolitical uncertainties have “somewhat abated.” The Nifty 50 index fell 0.18% after the decision, while the Sensex dipped marginally. The rupee strengthened marginally to trade at 87.72 against the dollar. The RBI’s latest move comes as India navigates rising tensions with the U.S. over its trade ties with Russia.
7. Trump raises India tariffs to 50% over Russian oil purchases
The White House announced Wednesday that it is imposing an additional 25% tariff on India, bringing the total levies against the major United States trading partner to 50%. “I find that the Government of India is currently directly or indirectly importing Russian Federation oil,” President Donald Trump said in an executive order. The new tariffs are set to go into effect in 21 days, according to the order, while the previously announced 25% tariffs are set to take effect on Thursday. Trump’s new tariff rate on India is now among the highest levies on any of the United States’ trading partners. It’s the latest sign that Trump is following through on his threat to punish countries that buy Russian oil, as he’s increased his rhetoric in recent weeks over President Vladimir Putin’s invasion of Ukraine.
8. Trump plans to meet with Putin as soon as next week
U.S. President Donald Trump plans to meet in person with Russian President Vladimir Putin as early as next week, the New York Times reported on Wednesday, citing two people familiar with the plan. Trump then plans to meet with Putin and Ukrainian President Volodymyr Zelenskiy together, the newspaper reported, adding that the plans were disclosed in a call with European leaders on Wednesday. “The Russians expressed their desire to meet with President Trump, and the President is open to meeting with both President Putin and President Zelenskiy. President Trump wants this brutal war to end,” White House Press Secretary Karoline Leavitt said, responding to the report. It was not immediately clear where or when such meetings would take place.
9. Trump vows 100% tariff on chips, unless companies are building in the U.S.
President Donald Trump said Wednesday he will impose a 100% tariff on imports of semiconductors and chips, but not for companies that are “building in the United States.” The announcement of new sector-specific tariffs shows Trump ratcheting up his efforts to pressure businesses to manufacture their products in the U.S. Trump said Tuesday that the duties on chips and semiconductors, which have become key components in virtually every industry, could come as soon as next week. “We’re going to be putting a very large tariff on chips and semiconductors,” Trump said in the Oval Office on Wednesday afternoon. “But the good news for companies like Apple is if you’re building in the United States or have committed to build, without question, committed to build in the United States, there will be no charge,” he said.
10. Apple details $100 billion U.S. spending expansion, including $2.5 billion for an iPhone glass factory
Apple CEO Tim Cook and President Donald Trump announced on Wednesday announced it will spend an additional $100 billion on U.S. companies and suppliers over the next four years. The company said its investment would incentivize overseas companies to buy more U.S.-made parts. The commitment is on top of a $500 billion announcement that Apple made in February. “This is the largest investment Apple has ever made in America and anywhere else,” Trump said. “As you know, Apple has been an investor in other countries a little bit, I won’t say which ones, but a couple, and they’re coming home.” Trump said that he expected new U.S. factories to be built soon based on his policies. Apple said it would spend $2.5 billion to fund a major expansion with Corning, which makes glass for iPhones in Kentucky. Apple said that all glass for iPhones and Apple Watches will be manufactured in the U.S.
11. Uber beats on revenue, announces $20 billion stock buyback
Uber reported second-quarter results on Wednesday that beat on revenue and announced the authorization of a $20 billion stock buyback. Gross bookings rose 17% to $46.8 billion, and the company reported adjusted earnings of $2.12 billion. Uber’s “monthly active platform consumers” increased 15% to 180 million in the second quarter. The company said users booked around 3.3 billion trips during the period, up 18% from a year earlier. In the second quarter, Uber launched Senior Accounts, including an “app experience” that features larger text and icons, and other features that allow family organizers to book and manage rides for others. In some international markets, Uber Eats’ food delivery service is more popular than ride hailing, and the company is working to increase “cross-platform activity” to drive sales growth, Khosrowshahi said in a release.
12. Amazon’s Zoox robotaxi unit clears regulatory hurdle, safety probe
Amazon’s Zoox has cleared a key regulatory hurdle, paving the way for demonstrations of its self-driving robotaxis. The National Highway Traffic Safety Administration said Wednesday that it granted Zoox an exemption from some requirements, a first for U.S.-built vehicles under a recently expanded program. As part of the announcement, NHTSA said it’s closing a probe opened in March 2023 into Zoox’s self-certification that its robotaxi met federal safety standards. The Department of Transportation in April announced it would expand a program that aims to speed up the autonomous vehicle exemption process to include domestically produced vehicles.
13. E.l.f. Beauty’s profits fall 30% as China tariffs weigh on bottom line
E.l.f. Beauty’s profits fell 30% in its fiscal first quarter as new tariffs on Chinese imports begin to affect the cosmetic company’s bottom line. In the three months that ended on June 30, E.l.f.’s net income fell to $33.3 million, down 30% from $47.6 million a year ago. The company, which sources about 75% of its products from China, also declined to provide a full-year revenue guide, citing the “wide range of potential outcomes” related to the new duties. Instead, the company only issued guidance for the first half of the fiscal year. E.l.f. said it is expecting sales growth to be above 9% in the first half of the year and adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, margins to be 20%, compared with 23% in the first half of the previous fiscal year. The company has already raised prices by $1 to offset tariff costs and is working to expand its business outside of the U.S. and diversify its supply chain.
14. Disney tops earnings forecasts with streaming gains, raises guidance
Walt Disney posted better-than-expected quarterly results and raised its annual profit forecast on Wednesday, led by gains in the streaming business, which is expected to be the centrepiece of its growth strategy in coming years. In the last 24 hours, the media and entertainment company entered two major deals with the National Football League and WWE as it readies its $29.99-per-month ESPN streaming service that will give viewers access to sporting events, including the NFL and National Basketball Association. The entertainment giant is betting that combining its Disney+, Hulu and ESPN services into a single streaming app will fuel growth of its profitable streaming service and help offset declines in its traditional television business. The company estimates its direct-to-consumer business will generate operating income, up 30% from its original guidance.
15. Michael Kors owner Capri forecasts upbeat revenue, shares jump
Capri Holdings forecast second-quarter revenue above estimates on Wednesday, after its turnaround strategy and improving demand for luxury handbags and footwear helped the Michael Kors owner defy a broader retail slowdown. The company also beat estimates for quarterly profit and revenue, sending its shares up more than 12% in midday trading, even as Capri forecast a bigger tariff impact on costs than earlier estimated. Investors have been hoping for signs of strength from Capri, after it lost nearly 44% of its stock value over the past year and competitors gained more market share. In an attempt to stem the declines, Capri kicked off a turnaround strategy that included shedding its struggling Versace label to Italy’s Prada earlier this year. It is also implementing cost-saving measures such as headcount reductions, store renovations and efficiency improvements across its supply chain.
16. Shopify delivers upbeat revenue forecast on resilient demand, shares surge
Shopify on Wednesday forecast upbeat quarterly revenue, saying there was no slowdown in consumer demand yet and sellers on its platform are holding up well under tariff pressures, sending its shares soaring 20%. The Canadian company’s merchant base has been resilient through early August after showing steady growth in the April-June period, powering a 31% surge in its second-quarter revenue. Shopify’s results assuaged some investor concerns over President Donald Trump’s shifting trade policies that have left many retailers unsure about demand, production, sourcing, and the costs of running their business.