USA

30Nov mmBy Brian ThompsonNo Comments
Asia, Market, USA, World

Asia Economic Monthly: Asia’s Trump surprise

Donald Trump has won the US presidential election. Tariffs and tax policy will likely be the focus under Trump 2.0, according to Nomura analysis. The administration may implement 60% tariffs against China, which may come into effect by mid-2025, and baseline tariffs of 10% on most foreign products imported by the US. What Trump 2.0 means for Asia Asia is better prepared this time. Trump’s re-election has less of a shock factor given greater familiarity with his policies. Asia is also more resilient, due to the ongoing trends of US-China decoupling, shifts in global supply chains and lower Asian exports to China. Yet, Trump 2.0 will likely mean more policy uncertainty, which may be a negative for Asia. There could be a larger drag on 2025 GDP growth. Even prior to t...
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Before the long weekend, the dollar declines due to a dump of economic data.
29Nov mmBy Michael SmithNo Comments
Market, USA, World

Before the long weekend, the dollar declines due to a dump of economic data.

The dollar fell broadly on Wednesday in thin pre-holiday trade, digesting a slew of indicators that underscored U.S. economic resilience while investors assessed the risk that President-elect Donald Trump will start a tariff war no one will win. The decline further unwound the dollar's recent rally. Few traders were interested in building or holding positions before a long Thanksgiving weekend for many of them that dovetails with month end. Markets are closed Thursday and exchanges close early on Friday. Moreover, revised data showing gross domestic product rose at a 2.8% rate in the third quarter, as expected and the same as last month's first estimate, did not much bolster the case for the Federal Reserve to ease again next month, although traders still leaned that way, lifting od...
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Unrevised US third-quarter GDP growth was 2.8%.
28Nov mmBy Walter ParezNo Comments
Market, USA

Unrevised US third-quarter GDP growth was 2.8%.

The U.S. economy grew at a solid clip in the third quarter, the government confirmed on Wednesday, amid robust consumer spending. Gross domestic product increased at an unrevised 2.8% annualized rate, the Commerce Department's Bureau of Economic Analysis said in its second estimate of third-quarter GDP. Economists polled by Reuters had forecast GDP would be unrevised. Slight downward revisions to consumer spending, government outlays and exports, were offset by upgrades to private inventory accumulation, business investment as well as state and local government spending. The economy grew at a 3.0% pace in the April-June quarter. It is expanding at a pace that is well above what Federal Reserve officials regard as the non-inflationary growth rate of around 1.8%. Consumer spendi...
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A trade crisis is sparked as the US threatens to impose tariffs on Canada and Mexico.
28Nov mmBy Mike TrudellNo Comments
Asia, Market, USA, World

A trade crisis is sparked as the US threatens to impose tariffs on Canada and Mexico.

The United States is threatening a significant shake-up in its trade relations with Canada and Mexico. President-Elect Trump has proposed imposing tariffs of up to 25 per cent on key imports. A Reuters report highlights that it includes crude oil, automobiles, and agricultural goods. This move comes amid escalating disputes over border security and trade imbalances. For Canada, the potential tariffs on crude oil could severely impact the nation’s economy, given that over 80 per cent of its oil exports are destined for the US. Meanwhile, Mexico, which relies heavily on automobile and agricultural exports to its northern neighbour, could face severe economic repercussions. Mexican president Claudia Sheinbaum during a press conference highlighted and I quote “to one tariff will c...
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The US-China tech battle has reached a “turning point” with Huawei’s latest smartphone.
26Nov mmBy Mike TrudellNo Comments
Asia, China, Market, USA, World

The US-China tech battle has reached a “turning point” with Huawei’s latest smartphone.

Huawei is set to launch its latest smartphone this week, complete with a new, made-in-China operating system — a first for a Chinese company and an indication of the progress the country’s tech companies have made, despite US sanctions. Unlike previous Huawei phones, which used an operating system built on Google’s Android, the new Mate 70 smartphone will run entirely on the company’s own HarmonyOS Next. Huawei hopes the system will be able to compete with the dominant incumbents, Apple’s iOS and Android, which together power around 98% of all smartphones globally, The Economist noted. Building a fully independent operating system “is no mean feat,” The Economist noted, because it requires persuading enough developers to spend time creating apps specifically for the new system:...
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Campaigners call the $1.3 trillion climate funding agreement that Cop29 agreed to a “betrayal.”
23Nov mmBy Michael SmithNo Comments
Asia, China, Market, Singapore, USA, World

Campaigners call the $1.3 trillion climate funding agreement that Cop29 agreed to a “betrayal.”

Rich and poor countries concluded a trillion-dollar deal on the climate crisis in the early hours of Sunday morning, after marathon talks and days of bitter recriminations ended in what campaigners said was a “betrayal”. Under the target the developing world should receive at least $1.3tn (£1tn) a year in funds to help them shift to a low-carbon economy and cope with the impacts of extreme weather, by 2035. But only $300bn of that will come primarily in the form they are most in need of – grants and low-interest loans from the developed world. The rest will have to come from private investors and a range of potential new sources of money, such as possible levies on fossil fuels and frequent flyers, which have yet to be agreed. Mohamed Adow, director of the Pow...
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The US AI chip behemoth Nvidia surpasses sales projections.
22Nov mmBy Michael SmithNo Comments
Market, USA, World

The US AI chip behemoth Nvidia surpasses sales projections.

Chipmaking giant Nvidia reported revenue of $35.08 billion in the third quarter, far outstripping economists’ expected $33.2 billion. Revenue is up 97% year-on-year for the period ending Oct. 27. Net income rose to $19.3 billion compared to $9.24 billion in the same period last year. Driving the surge is its AI business, which includes chips and data centers. Nvidia also projected $37.5 billion in sales for the current quarter, slightly above the expected $37.08 billion. The results mean the US chipmaker has now exceeded analysts’ expectations for the eighth quarter in a row, although they also mark a fourth consecutive slow-down in sales for the chipmaker overall, CNBC noted. The world’s largest company by market cap, Nvidia is seen as a bellwether of the direction of the...
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According to Stanford’s AI Center, the US has the best AI environment, followed by China.
22Nov mmBy Joe RodriguezNo Comments
Asia, China, Market, USA, World

According to Stanford’s AI Center, the US has the best AI environment, followed by China.

The US has been called the Wild West when it comes to AI safety due to a lack of federal governance compared to other countries. But that hasn’t impaired its status as the top AI ecosystem in the world, according to a Stanford University ranking. Stanford’s Institute for Human-Centered Artificial Intelligence (HAI) has created a tool that measures the strength of AI ecosystems based on a country’s economy, infrastructure, education, and yes — governance. Those metrics led a panel of experts to designate the US as the world’s AI powerhouse by a landslide because of its high number of existing models, notable private investments, and research on responsible AI. China follows, with strengths in its number of patents granted, investment, and clear national strategy. “Since the...
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Stocks of Intuit and H&R Block are impacted by Elon Musk’s proposal to streamline tax filings.
21Nov mmBy Michael SmithNo Comments
Market, USA, World

Stocks of Intuit and H&R Block are impacted by Elon Musk’s proposal to streamline tax filings.

Elon Musk’s early push to streamline the government is already hitting Intuit and H&R Block, whose shares dropped amid chatter of a free tax-filing app floated by Musk’s new Department of Government Efficiency. Intuit’s shares fell 5% while H&R Block’s stock dropped 8% Tuesday, marking its worst performance since 2020. “Crazy idea: let’s simplify the tax code,” Musk posted on X. If launched, the app would come on the heels of work from the Biden administration to make filings more accessible. Earlier this year, the IRS rolled out free software to residents of 12 states as part of a larger invite to onboard the entire nation by the 2025 tax season. The IRS largely leaves individuals to figure out how tax laws apply for themselves, unlike ...
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SMIC and Huawei of China “will ramp up production” of the newest AI chip.
21Nov mmBy Joe RodriguezNo Comments
Asia, China, Market, USA, World

SMIC and Huawei of China “will ramp up production” of the newest AI chip.

SMIC, China’s largest contract chipmaker, will make the 910C on its N+2 process, it added. Huawei is aiming to ramp up production even as the yield – the proportion of chips that come off the manufacturing line fully functional – of its advanced AI semiconductors remains far below industry standards. Advanced chips need yields of more than 70% to be commercially viable — lower yields mean greater costs and higher defect rates. But SMIC is currently producing the 910C on older, stockpiled chipmaking equipment, which has limited the chip’s yield to around 20%, Reuters said, citing a source. Even Huawei’s current most advanced processor, the SMIC-made 910B, has a yield of only around 50%, forcing Huawei to slash production targets and delay filling orders for that chip, the ...
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