- Asian shares, US futures rise on EU tariff delay
US and European equity-index futures climbed along with Asian stocks on Monday after President Donald
Trump extended a deadline on aggressive European tariffs as trade tensions whipsawed markets. Contracts for
the S&P 500, Nasdaq 100 and Euro Stoxx 50 rose about 1% after Trump said he had agreed to delay the date
for a 50% tariff on goods from the European Union to July 9 from June 1. The dollar fluctuated after falling to
its lowest level since December 2023. The yen and Swiss franc, major beneficiaries of the Friday move,
retreated. A gauge of Asian shares rose at the open. - Dow slides 200 points, S&P 500 tumbles for a fourth day after Trump threatens tariffs on EU, Apple
Stocks declined Friday after President Donald Trump raised trade fears again, warning Apple and
recommending stiffer duties on the European Union. The Dow Jones Industrial Average lost 256.02 points, or
0.61%, to end at 41,603.07. The S&P 500 shed 0.67% and closed at 5,802.82, and the Nasdaq
Composite dropped 1% and settled at 18,737.21. Apple shares fell 3% after Trump posted on Truth Social that
iPhones sold in the U.S. must be made in the U.S. and if they are not “a tariff of at least 25% must be paid by
Apple.” The move against Apple by Trump is the first against a specific company in his tariff rollout this year. - Oil heads for first weekly loss since April on OPEC+ supply hike expectations
Oil prices edged higher on Friday, but were set for their first weekly decline in three weeks, weighed down by
rising expectations of another large OPEC+ output increase for July. Brent futures rose 30 cents, or 0.47%, to
$64.74 a barrel. U.S. West Texas Intermediate crude futures were up 27 cents, or 0.44%, to $61.47. Both
contracts are set to lose more than 1% on the week following two weeks of gains. OPEC+ which groups the
Organization of the Petroleum Exporting Countries and allies led by Russia, is holding meetings next week
expected to yield another output increase of 411,000 barrels per day for July. Reuters reported earlier this
month that the group may unwind the rest of its 2.2 million bpd voluntary production cut by the end of
October, having already raised output targets by about 1 million bpd for April, May and June. - Gold rises over 2% on safe-haven flows after Trump’s renewed tariff threats
Gold prices rose more than 2% on Friday and logged their best week in six, as investors sought the safe-haven
asset amid renewed tariff threats from U.S. President Donald Trump and a weaker dollar. Spot gold gained
2.1% to $3,362.70 an ounce. Bullion rose 5.1% this week to touch an over two-week high. U.S. gold futures
settled 2.1% higher at $3,365.8. “Trump has been on a tear the last 24 hours. Threatening 50% tariffs on the
EU as of June 1, biting Apple and hammering Harvard has stocks in a black mood, which is great for gold,” said
Tai Wong, an independent metals trader. “Renewed tariff concerns on a low-liquidity day ahead of the long
weekend can magnify moves.” Global stocks tumbled after Trump recommended 50% tariffs on European
Union imports from June 1. Trump also said that Apple would pay a 25% tariff on iPhones that are sold in the
U.S. but not made there. The dollar eased 0.9%, making greenback-priced gold cheaper for foreign currency
holders. On Thursday, the Republican-controlled U.S. House of Representatives passed a sweeping tax and
spending bill that would add trillions of dollars to the country’s debt. - Trump delays 50% tariffs on EU to July 9
President Donald Trump said Sunday that he agreed to an extension on the 50% tariff deadline on the European
Union until July 9. “I received a call today from Ursula von der Leyen, President of the European Commission,
requesting an extension on the June 1st deadline on the 50% Tariff with respect to Trade and the European
Union,” Trump wrote on Truth Social. “I agreed to the extension — July 9, 2025 — It was my privilege to do
so,” he added. Trump’s post came after Von der Leyen said that she had a “good call” with Trump, but needed
until July 9 to “reach a good deal.” “The EU and US share the world’s most consequential and close trade
relationship,” she wrote on X. - Apple raises trade-in prices for iPhones in China to spur demand in key market
Apple on Friday raised the amount of money people can get off their next iPhone in China by trading in their
old device, rolling out further incentives to spur demand in a crucial market. The iPhone 15 Pro Max now has
a trade-in value of up to 5,700 Chinese yuan ($791), an increase from 5,625 yuan previously. For reference, a
brand new iPhone 15 Pro Max starts at 7,999 yuan in China. The iPhone 15 Pro model can now be traded in for
up to 4,750 yuan, up from 4,725 prior. There are also trade-in value increases across other models too. Apple
has looked to offer discounts over the last year, especially around holiday periods in China. While the latest
hikes are not huge, they signal Apple’s ongoing desire to galvanize sales in the world’s second largest economy,
where it has faced falling market share and declining sales amid tougher competition from local rivals. In the
first quarter of the year, Apple’s China shipments fell 8% year-on-year, while the company’s share of the
smartphone market in the country declined from 15% to 13%, according to data from Canalys. Apple also
reported this month that sales in its Greater China region, which includes Hong Kong and Taiwan, fell slightly
on an annual basis. But Apple’s China headache goes beyond sales to questions over its supply chain and
products. While U.S. President Donald Trump has paused most tariffs on China for now, there is still an ongoing
discussion about whether chips and other electronics may receive a special duty. Apple, which makes
around 90% of its iPhones in China via its manufacturing partner Foxconn, has been looking to move more
production to India — though Trump has also voiced displeasure with that. The White House leader said this
month that he told Apple CEO Tim Cook he doesn’t want the company building products in India and would
rather them make devices in the U.S. - Europe’s battle for power spurs evolution of a new ecosystem for energy-hungry firms
Businesses are facing five to eight-year waiting times to connect to Europe’s strained grids as the emergence
of new areas of demand drives an unprecedented rise in permit requests for power. That competition is set to
continue even as high electricity prices and operational costs hamper overall power demand for the region,
leading to deindustrialization and a more fragmented market. Bottlenecks in power grids — which transport
electricity to locations such as homes and businesses — are driving shifts in the market as firms look for
alternative sources of accessing power. - BYD beats Tesla in European EV sales despite EU tariffs in ‘watershed moment,’ report says
Despite incurring a higher tariff rate than Tesla, Chinese electric vehicle maker BYD sold more pure battery
electric vehicles in Europe for the first time ever last month — a “watershed moment” for the region’s car
market, according to a report from JATO Dynamics. New car registrations data from the automotive
intelligence firm shows that BYD’s Europe volumes rose 359% in April from last year as the company continues
its global expansion efforts. Over the same period, Tesla reported yet another monthly drop, with total volumes
down 49%, JATO said. That follows protests against CEO Elon Musk and the company in the region. JATO’s data
comes from 28 European nations. BYD’s success in the EU comes despite the economic bloc’s imposition of
punitive tariffs on battery EVs made in China last October. The EU attributed the move to unfair trade practices.
The punitive tariffs appeared to be favorable to Tesla, assigning its made-in-China vehicles a 7.8% duty
compared with BYD’s 17%. Other Chinese EV makers were given tariffs as high as about 35%. The EU also has
a standard 10% car import duty. - Nuclear power stocks soared after Reuters reported that President Donald Trump will sign executive
orders that aim to jumpstart the industry by easing the regulatory process on approvals for new reactors
and strengthening fuel supply chains
Reuters cited people familiar with the matter, and added that a draft summary of the orders said Trump will
invoke the Cold War-era Defense Production Act to declare a national emergency over U.S. dependence on
Russia and China for enriched uranium, nuclear fuel processing and advanced reactor input. - United States Steel shares soared 21.2% after President Trump said in a post on Truth Social that he backs
a “planned partnership between and Nippon Steel.”
Earlier, Nippon Steel’s president said the company is in talks with the US government on a deal. The Wall Street
Journal reported that Nippon has roughly doubled its spending plan and pledged to build a new mill in its bid
to takeover US Steel. Nippon Steel had previously proposed paying $55 a share for US Steel. - Booz Allen Hamilton shares slumped 16.5% after the defense contractor forecast fiscal 2026 profit that
missed estimates. Management also sees much smaller revenue growth compared to fiscal 2025
The 2026 forecast for revenue growth is for much as 4%, compared to 12.5% growth last fiscal year. The
guidance and 4Q earnings prompted Raymond James analyst Brian Gesuale to downgrade his rating to market
perform from outperform; he called bookings during the 4Q “soft”. 2026 YEAR FORECAST: Sees adjusted Ebitda
$1.32 billion to $1.37 billion, estimate $1.42 billion. Sees adjusted EPS $6.20 to $6.55, estimate $6.85. Sees
revenue 0% to +4%. FOURTH QUARTER RESULTS: Adjusted EPS $1.61 vs. $1.33 y/y, estimate $1.59. Revenue
$2.97 billion, +7.3% y/y, estimate $3.03 billion. Backlog $37 billion, +9.5% y/y. Adjusted Ebitda $316 million,
+10% y/y, estimate $328.6 million. Adjusted Ebitda margin 10.6% vs. 10.3% y/y, estimate 11%. The company
said it will cut about 7% of its almost 36,000 employees this quarter in response to the Trump administration’s
move to shrink government spending. - Deckers Outdoor tumbled 19.9% after the owner of Hoka running shoes and Ugg boots provided a
disappointing fiscal first-quarter forecast. The company also declined to provide full-year guidance due to
the current macro uncertainty
Evercore ISI analyst Jesalyn Wong (cut to inline from outperform, PT $110): Deckers might be entering a new
phase of lower growth profile — “see signs of deceleration across its two key brand growth engines – UGG and
HOKA”. Growth expectations are moderating, especially at a time when peers like On Holding issue strong
outlooks. KeyBanc Capital Markets analyst Ashley Owens (cut to sector weight from overweight): Downgrade
reflects slowing HOKA growth and near-term strategy. “As HOKA’s slowing trajectory, shift toward wholesale
door growth, and potential demand erosion from price increases raise concerns despite a better than expected
quarter”. FIRST-QUARTER FORECAST: Sees 1Q net sales $890m to $910m, est. $923.5m. Sees 1Q EPS 62c to
67c, est. 80c. FOURTH-QUARTER RESULTS: Net sales $1.02 billion, +6.5% y/y, estimate $1 billion. UGG net sales
$374.3 million, +3.6% y/y, estimate $339.1 million. HOKA net sales $586.1 million, +10% y/y, estimate $605.1
million. Gross margin 56.7% vs. 56.2% y/y. EPS $1.00.
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