Donald Trump threatens 50% tariffs on Europe and a 25% tariff on Apple iPhones. Japanese bond yields surge to multi-decade highs. Oil production is set to rise. And New Zealand’s retail trade beats expectations in the March quarter.
In our deep-dive interview, ANZ’s Group Chief Economist Richard Yetsenga analyses Trump’s latest moves and the selloff in long bonds globally, and the US in particular.
5 things to know in 5 minutes:
Donald Trump threatened a 50% tariff on imports from Europe late on Friday, and a 25% tariff on iPhones and other smart phone imports. US stocks fell 0.6% and the US dollar fell around 1%. ANZ’s Head of G3 Economics Brian Martin says a trade deal with Europe won’t happen fast.
A big mover in the last week has been long bonds, with Japanese long bond yields jumping to multi-decade highs, says ANZ’s Head of FX Strategy Mahjabeen Zaman.
Mahjabeen says the Bank of Japan will play a key role in what happens next.
OPEC is ramping up production to punish those breaking their current limits, which is putting downward pressure on oil prices, says ANZ’s Senior Commodities strategist Daniel Hynes.
New Zealand’s retail trade volumes rose more than expected in the March quarter, which will help GDP figures, says ANZ Economist Matthew Galt.
Cheers,
Bernard
PS: Catch you tomorrow with a preview of New Zealand’s big rates decision this week.
