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Good morning, I’m back to Firstft Asia. In today’s newsletter:
Trump threatens Asian allies with sudden tariffs
Wall Street trading companies fight India’s ban
Hong Kong’s listing pipeline has hit record highs
Dining Guide in Mumbai
Donald Trump has updated his threat of hitting key trading partners with sudden “mutual” tariffs, despite giving the country a three-week respite to negotiate a trade deal with the United States.
What happened: Trump sent a letter to Japan and South Korea. Both are one of the largest trading counterparts in the United States, and say they will be taxed 25% from August 1st. The president has also announced major taxation levies on Malaysia, South Africa and several other countries. The tariffs were roughly comparable to those Trump announced during his announcement of his “liberation date” on April 2.
In a letter to Japan’s Prime Minister and South Korean President Lee Lee Jae-myeon, Trump said, if any country increases tariffs in retaliation, whatever you choose to raise them, it will be added to the 25% we charge.” However, he showed that if the country opens the market, the proposed tariffs could be negotiated.
Market Reaction: Yesterday, the scale of Trump’s tariff threat put pressure on the market despite delayed implementation. The S&P 500 fell 0.8% on Monday. Meanwhile, Japanese, South Korea and South Africa all fell by about 1% against the US dollar.
Here is the other thing we keep tabs today:
Economic Data: Taiwan has released June inflation and trade figures.
Monetary Policy: The Reserve Bank of Australia is expected to cut interest rates. (Guardian)
ASEAN Conference: Foreign Ministers from the Southeast Asian bloc will gather in Kuala Lumpur, Malaysia for a continuing meeting until Friday. Secretary of State Marco Rubio is expected to be present.
Five more top stories
1. Jane Street will challenge the discovery by Indian financial regulators that Wall Street trading companies engaged in “intentional, well-planned, ominous plans” to manipulate the country’s market. India’s Securities and Exchange Commission has banned Jane Street from dealing with domestic securities and ordered it to return “illegal profits” in over $550 million.
2. Iranian President Masuud Pezeshkian said Israel had tried to assassinate him during the 12-day war between the two countries last month. Pezeschkian made his claim in a video interview with American conservative media personality Tucker Carlson. Meanwhile, Iran has shown that it remains open to new diplomacy with the United States over the Islamic Republic’s nuclear program. Please read the entire story.
3. The Russian state investigator said yesterday that the country’s Transport Minister died on suspicion of suicide. He was fired by President Vladimir Putin. The death of Romaster Voight came into being during a corruption investigation into the construction of a defensive fortress in Kursk, which he ruled until May 2024.
4. Italian authorities have arrested a Chinese citizen suspected of being linked to a state-sponsored hacking group that attempted to steal Covid-19 vaccine secrets from the United States during the height of the pandemic. The Beijing-backed group was accused of infiltrating Microsoft email software in 2021 with mass espionage, someone familiar with the matter said.
EU and China Climate Standoffs: The EU refrains from signing a joint declaration on climate action with China at this month’s leadership summit, unless Beijing pledges greater efforts to reduce greenhouse gas emissions.
5. Tesla’s stocks have fallen after Elon Musk, the CEO of the electric vehicle manufacturer, said it would escalate a feud with Trump, which could put the billionaire business empire at risk. His return to political activity is contrary to Musk’s promised by shareholders in late April.
Big reading
As the world prepares to mark the anniversary of the Slebrenica massacre 30 years ago, Bosnia and Herzegovina face dangerous moments of political upheaval. Read why ethnically, trouble is being brewed again in Riven Balkan.
We’re reading too. . .
Immigrant Repression: Trump hits the ice on America’s most funded law enforcement agencies. And it’s increasingly beyond accountability, Edward Ruth writes.
The death of an apprentice model? : As hybrid working and AI are promoted in hands-on learning, employers must be more intentional with the training they provide to junior staff, Emma Jacobs writes.
BlackRock’s HPS Takeover: The Public Markets Giant has attempted a private credit once before. Is that newest big advancement fee better?
The chart of the day
This year, the number of companies applying for listings in Hong Kong reached an all-time high as the territory seeks to regain its status as the top financial hub.
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Take a break from the news
. . . Check out Dishoom’s guide to eating in Mumbai. The cousin behind the cult-indian restaurant chain eats and drinks at Megalopolis, which stimulates the food.
