Donald Trump announces a 100% tariff on chip imports, but markets are relaxed because there’s lots of exemptions. The Bank of England cuts…but only just, and oil prices are falling as OPEC+ pumps out more crude.
In part two of our Deep Dive interview with Soni Kumari about India’s huge demand for metals, she lays out the opportunity for Australia’s exporters.
5 things to know in 5 minutes:
Donald Trump announced a 100% tariff on imports of semi-conductors. But ANZ Economist in London Bansi Madhavani says markets took it in their stride because there were plenty of exemptions.
The Bank of England cut its key policy rate overnight by 25 basis points to 4.0%, but with only a wafer-thin majority of five in favour of a cut and four voting for a hold, and only after a second round of voting for the first time in three decades.
Despite all the tariff drama, China reported better-than-expected export growth in July of 7.2% from a year ago, says ANZ Economist Vicky Xiao Zhou.
The Philippines’ GDP growth nudged up to 5.5% in the June quarter from a year ago, from 5.4% in the March quarter, but ANZ Economist Arindam Chakraborty says there’s still room for more monetary policy easing.
Oil prices have fallen 7.9% this week to under US$64/bbl after OPEC+ announced last weekend it was completing the unwind of 2.2 million barrels of production hikes from early 2024, which ANZ Senior Commodity Strategist Daniel Hynes says has weighed on prices.
Cheers,
Bernard.
PS: Catch you on Monday with a closer look at Australia’s neutral interest rate with ANZ’s Head of Australian Economics Adam Boyton.
