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Trump's proposed tariff list is out, and the International Monetary Fund has prodded China on trade. Meanwhile markets went risk-on late in the U.S. session amid reports the White House isn't looking to challenge Amazon.com's business. Here are some of the things people in markets are talking about.
Trump Releases Chinese Tariff List
The Trump administration has released a list of Chinese-made products on which it plans to impose tariffs, focusing on high tech products while seeking to minimize the impact on U.S. consumers. The list of products will line up with Beijing's “Made in China 2025” strategy, White House trade adviser Peter Navarro told Bloomberg Television on March 28. That plan highlights 10 sectors: Information technology, high-end machinery and robotics, aerospace, marine equipment and ships, advanced rail transport, new-energy vehicles, electric power, agricultural machinery, new materials, and bio-medical. Meanwhile a top official at the International Monetary Fund says Beijing needs to take steps to address worries about its trade policies. “The U.S. is not alone in being concerned,” IMF First Deputy Managing Director David Lipton told Bloomberg Television. Separately, China's U.S. ambassador Cui Tiankai said the country will respond to tariffs with the same proportion, scale and intensity.
Amazon, Tesla and the Market
Thanks to the tariffs news, Asia may be in for a volatile session. In the U.S., stocks rose and the VIX fell as risk-on sentiment took hold toward the end of the U.S. day. The S&P 500 posted a 1.26 percent advance, Treasury 10-year yields climbed to around 2.78 percent, gold fell and oil rallied. Equities rose to session highs after a report that inside the White House, there are no active discussions about turning the power of the administration against Amazon.com, even though it's a favorite target of President Donald Trump lately. Meanwhile, Tesla Inc. shares rebounded even as the company missed production estimates, after analysts said the numbers were better than feared.
BOJ to the Rescue (Sort of)
It's been a bad year for the Japanese stock market. Without record purchases by the Bank of Japan, it could have been even worse. The BOJ spent 833 billion yen ($7.9 billion) on exchange-traded funds tracking the country's shares last month, the biggest amount in data stretching back to late 2010. In the first quarter, too, it bought more than ever before. The BOJ stepped in as the market slumped in a global equity rout, deserted by foreign investors, with the benchmark Topix index sinking to its first back-to-back monthly declines since the start of 2016. Also, the BOJ is talking about how to eventually exit from its massive monetary stimulus program, but it's still too early to reveal details, Governor Haruhiko Kuroda told parliament.
Hyundai's Big New Investor
Elliott Management Corp., the sometimes-activist hedge fund run by billionaire Paul Singer, said it's bought a more than $1 billion stake in several Hyundai Motor Group entities and is calling for a clearer plan to improve operations. The New York-based hedge fund praised the auto conglomerate for simplifying its ownership structure last month after drawing criticism from corporate-governance activists for years. Still, Elliott called the moves a “first step” and said it's looking forward to meeting with management and stakeholders about the group's issues.
Williams to the New York Fed
Federal Reserve Bank of San Francisco President John Williams was selected to run the powerful New York branch, taking over from William Dudley June 18. Williams, who had been reported to be a front-runner for the position, is considered a centrist on monetary policy and recently said that he favors the largely consensus view of three to four rate hikes this year. Meanwhile, because everyone loves a good "Five Things," here's a list of stuff to know about Williams.
What we've been reading
This is what caught our eye over the last 24 hours.
- These are the world's cheapest places for drugs, booze and cigarettes.
- China's alarming debt pile could stabilize this year.
- A woman shot and injured several people before killing herself at Google's YouTube headquarters.
- Asia tech is faring worse than the FAANGs.
- Listing tokens isn't cheap.
- A billionaire heads to court in a battle over India's steel market.
- Here's where to invest for the synchronized global growth theme.
- Tesla's Model 3 is now America's best-selling electric car.
--With assistance from Scott Deveau Andrew Mayeda Maria Tadeo Min Jeong Lee Toshiro Hasegawa Jennifer Jacobs and Esha Dey
To contact the editor responsible for this story: Boris Korby at bkorby1@bloomberg.net.
©2018 Bloomberg L.P.
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