Daily Buzz: 13 May 2025
Top News
China and US reduce tariffs
China and the US agreed to lower tariffs for a 90-day period to allow trade negotiations to continue. Tariffs and countermeasures returned to pre-April 2 levels, with both sides cutting reciprocal tariffs by 115 percentage points. That leaves 10 percent baseline tariffs for each side, excluding pre-existing, sector-specific duties, such as a 20 percent levy on China related to the fentanyl issue, and China's 10-15 percent duties on US coal, crude oil and liquified natural gas, among others. US stocks surged on the news of the preliminary agreement, with the S&P 500 index in New York surging 3.26 percent and the Nasdaq gaining 4.35 percent. Toys, technology and e-commerce stocks posted big gains.
Japan's trade stance
Japanese Prime Minister Shigeru Ishiba said on Monday that his nation won't accept any trade deal with the US that excludes US automobile tariffs. The declaration comes amid ongoing negotiations between the two countries. Ishiba suggested that increasing US corn imports might be a concession, signaling readiness to open wider Japan's heavily protected agricultural sector. The yen strengthened against the US dollar, climbing above 148.20.
US hostage released by Hamas
Edan Alexander, 21, the last living US-born hostage held in Gaza, was released to Israel by Hamas as part of efforts to reach a new ceasefire ahead of US President Donald Trump's visit to the Middle East on Tuesday. Alexander was serving in the Israeli army when he was captured 19 months ago.
Top Business
Drug pricing order
President Donald Trump signed an executive order aiming to slash prescription drug prices in the US by 30-80 percent, mandating that the US pay no more than the lowest prices for drugs globally. He said the US will no longer subsidize lower drug costs in foreign countries at the expense of its own citizens. Pharmaceutical stocks plunged in Asia on the news, while shares in global pharmaceutical companies listed in New York rose on the news of China-US joint agreement for a 90-day pause and reduction in tariffs.
Embracing AI
Chinese respondents showed much higher trust in and acceptance of artificial intelligence than the world at large in a survey of 48,000 people in 47 countries conducted by the University of Melbourne and consultancy firm KPMG. Globally, 58 percent of respondents said they use AI tools, with 93 percent of Chinese reporting workplace use. China is a world leader in development of AI technology.
Economy
Brazilian president in Beijing
Luiz Inacio Lula da Silva, who is in China on a state visit to attend a China-Latin American meeting of regional leaders, spoke out against US "bullying" of Latin America and unilateral sanctions against countries in the region. He called the Beijing forum "another major step in our friendly and strategically close relationship with China, Brazil's largest trading partner since 2009."
Fed board member warns of tariff repercussions
Adriana Kugler, a member of the US Federal Reserve board of governors, said it's hard to judge "the underlying pace of growth of the US economy" because of rapidly evolving changes in trade policy. Speaking at an event in Ireland, she said even lowered tariffs in a US-China preliminary trade accord are likely to generate "significant economic effects."
Corporate
Nissan job cuts
Japanese carmaker Nissan Motor will slash more than 10,000 jobs globally, bringing total layoffs to about 15 percent of its workforce, according to Japanese broadcaster NHK. In February, Nissan and Honda called off US$60 billion merger talks, citing disagreements over job cuts and factory capacity. Nissan has also announced it will close its plant in the Chinese city of Wuhan plan by March 2026, citing low output and fierce competition from Chinese electric vehicle makers.
China's big shopping spree starts
The "618 shopping festival," one of the China's biggest shopping events, starts today, with e-commerce giants Alibaba, JD.com and ByteDance poised for a price war.
Tiktok Shop, which kicked off discounts at midnight, promised to provide hundreds of millions of yuan in cash subsides. Alibaba and JD.com promised a variety of discount offers.
Panama port deal
Hong Kong's CK Hutchison Holdings released a statement on the controversial Panama port deal, stating that "this transaction will absolutely not proceed under any illegal or non-compliant circumstances." It is the first statement directly issued by the company after Beijing raised concerns over Hutchison preliminary agreement to sell 43 overseas ports to a BlackRock-led consortium, amid pressure from the Trump administration to end "Chinese influence" over the Panama Canal. The deal is currently being reviewed by the State Administration for Market Regulation.
New flag in auto production
Hongqi, the auto brand that produced the Red Flag vehicles once favored by Chinese leaders, is venturing deeper into electric vehicles, Bloomberg News reported. The company is aiming for electric cars to account for half of sales this year and 70 percent of sales by 2028. Its late entry into the sector puts it in competition with more established domestic models from the likes of BYD, Huawei, Xiaomi and Dongfeng Motor Group.
