https://x.com/litcapital/status/1907815055497814136
I'm not even looking at my stuff today.
US Politics Thread
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Dr. Zoidberg
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Dr. Zoidberg
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Dr. Zoidberg
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Re: US Politics Thread
:olol: No not really.
Two co-workers were laid off on Friday due to federal funding cuts. We'll survive but it makes me feel more anxious about the next 3 years at work. I feel a bit better knowing that there were ~5,000 at a protest on Saturday, even here in Trump Country.
Two co-workers were laid off on Friday due to federal funding cuts. We'll survive but it makes me feel more anxious about the next 3 years at work. I feel a bit better knowing that there were ~5,000 at a protest on Saturday, even here in Trump Country.
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Bandit
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Dr. Zoidberg
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Dr. Zoidberg
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Re: US Politics Thread
China are planning six additional retaliatory measures against the US.
https://biz.chosun.com/en/en-international/2025/04/08/H55RJTC4LRCABLELI2S4FNKGLI/
- Increase tariffs on US agricultural products such as soyabeans
- US chicken products will face a complete ban (due to frequent outbreaks of bird flu in the US)
- Stopping cooperation on fentanyl exports to the US
- Restrictions on US corporate participations in the services sector and on business and legal consulting
- Banning the importation of US films
- Investigations into US corporates that enjoy monopoly profits whilst obtaining Chinese intellectual property rights
https://biz.chosun.com/en/en-international/2025/04/08/H55RJTC4LRCABLELI2S4FNKGLI/
- Increase tariffs on US agricultural products such as soyabeans
- US chicken products will face a complete ban (due to frequent outbreaks of bird flu in the US)
- Stopping cooperation on fentanyl exports to the US
- Restrictions on US corporate participations in the services sector and on business and legal consulting
- Banning the importation of US films
- Investigations into US corporates that enjoy monopoly profits whilst obtaining Chinese intellectual property rights
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Bandit
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Dr. Zoidberg
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Re: US Politics Thread
Bond rout starting to sound market alarm bells
SINGAPORE (Reuters) - U.S. Treasuries extended heavy losses on Wednesday in a sign investors are dumping even their safest assets as a global market rout unleashed by U.S. tariffs takes an unnerving turn towards forced selling and a dash for the safety of cash.
"This is beyond fundamentals right now. This is about liquidity," said Jack Chambers, senior rates strategist at ANZ in Sydney.
The 10-year U.S. Treasury yield, the globe's benchmark safe-haven anchor, was unmoored and long bonds were the focus of intense selling from hedge funds which had borrowed to bet on usually small gaps between cash and futures prices.
It shot higher, crossing 4.5% at one point, even as traders ramped up expectations for U.S. rate cuts and, in another signal of dislocation in markets, the dollar fell against the euro and yen.
Japan's central bank, finance ministry and banking regulator called an unscheduled meeting for 0700 GMT to discuss the moves, which pulled back some of the extreme selling.
At 4.41% the 10-year yield was up 16 basis points in Asia and more than 50 basis points from Monday's low.
A three-day rise of nearly 60 basis points in 30-year yields, which spiked above 5%, would mark - if sustained - the heaviest selloff since 1981.
The selloff extended beyond Treasuries to Japan, where the Japanese 30-year government bond yield surged to 21-year highs.
"This is up there with GFC and COVID level of volatility," said Mark Elworthy, Bank of America's head of fixed income, currency and commodity trading in Australia. "Would expect to have some central bank response in the near term if markets continue to behave like they have been in the last 12-24 hours."
Warning signals have been flashing for a few days as spreads between Treasury yields and swap rates in the interbank market collapsed under the weight of bond selling.
BASIS TRADE
Hedge funds were at the heart of it because their lenders could no longer stomach large positions betting on small differences between cash Treasuries and futures prices, or swaps, as markets started to swing on tariff headlines.
"When the prime broker starts tightening the screws in terms of asking for more margins or saying that I can't lend you more money, then these guys obviously will have to sell," said Mukesh Dave, chief investment officer at Aravali Asset Management, a global arbitrage fund based in Singapore.
The so-called "basis trades" are typically the domain of macro hedge funds. They rely on selling futures contracts or paying swaps and buying cash Treasuries with borrowed money, with a view to exploiting slight price differences.
As they dumped Treasuries this week, bond yields have soared and fallen out of sync with swaps. At the 10-year tenor, the gap has shot to 64 basis points, the largest on record.
On Wednesday, the highest U.S. tariffs in more than a hundred years came into force, roiling global markets, and strategists said a broader debate about the future of Treasuries as the centre of the global financial universe was underway.
"The UST selloff may be signalling a regime shift whereby U.S. Treasuries are no longer the global fixed-income safe haven," said Ben Wiltshire, G10 rates trading desk strategist at Citi.
Others have pointed to potential changes in global trade flows over the long run slowing foreign buying of U.S. debt or that foreign holders could turn sellers.
"Markets are now concerned that China and other countries could 'dump' U.S. Treasuries as a retaliation tool," said Grace Tam, chief investment adviser at BNP Paribas Wealth Management in Hong Kong.
In any case, speed of the selloff pointed to pain.
Source: Yahoo Finance
SINGAPORE (Reuters) - U.S. Treasuries extended heavy losses on Wednesday in a sign investors are dumping even their safest assets as a global market rout unleashed by U.S. tariffs takes an unnerving turn towards forced selling and a dash for the safety of cash.
"This is beyond fundamentals right now. This is about liquidity," said Jack Chambers, senior rates strategist at ANZ in Sydney.
The 10-year U.S. Treasury yield, the globe's benchmark safe-haven anchor, was unmoored and long bonds were the focus of intense selling from hedge funds which had borrowed to bet on usually small gaps between cash and futures prices.
It shot higher, crossing 4.5% at one point, even as traders ramped up expectations for U.S. rate cuts and, in another signal of dislocation in markets, the dollar fell against the euro and yen.
Japan's central bank, finance ministry and banking regulator called an unscheduled meeting for 0700 GMT to discuss the moves, which pulled back some of the extreme selling.
At 4.41% the 10-year yield was up 16 basis points in Asia and more than 50 basis points from Monday's low.
A three-day rise of nearly 60 basis points in 30-year yields, which spiked above 5%, would mark - if sustained - the heaviest selloff since 1981.
The selloff extended beyond Treasuries to Japan, where the Japanese 30-year government bond yield surged to 21-year highs.
"This is up there with GFC and COVID level of volatility," said Mark Elworthy, Bank of America's head of fixed income, currency and commodity trading in Australia. "Would expect to have some central bank response in the near term if markets continue to behave like they have been in the last 12-24 hours."
Warning signals have been flashing for a few days as spreads between Treasury yields and swap rates in the interbank market collapsed under the weight of bond selling.
BASIS TRADE
Hedge funds were at the heart of it because their lenders could no longer stomach large positions betting on small differences between cash Treasuries and futures prices, or swaps, as markets started to swing on tariff headlines.
"When the prime broker starts tightening the screws in terms of asking for more margins or saying that I can't lend you more money, then these guys obviously will have to sell," said Mukesh Dave, chief investment officer at Aravali Asset Management, a global arbitrage fund based in Singapore.
The so-called "basis trades" are typically the domain of macro hedge funds. They rely on selling futures contracts or paying swaps and buying cash Treasuries with borrowed money, with a view to exploiting slight price differences.
As they dumped Treasuries this week, bond yields have soared and fallen out of sync with swaps. At the 10-year tenor, the gap has shot to 64 basis points, the largest on record.
On Wednesday, the highest U.S. tariffs in more than a hundred years came into force, roiling global markets, and strategists said a broader debate about the future of Treasuries as the centre of the global financial universe was underway.
"The UST selloff may be signalling a regime shift whereby U.S. Treasuries are no longer the global fixed-income safe haven," said Ben Wiltshire, G10 rates trading desk strategist at Citi.
Others have pointed to potential changes in global trade flows over the long run slowing foreign buying of U.S. debt or that foreign holders could turn sellers.
"Markets are now concerned that China and other countries could 'dump' U.S. Treasuries as a retaliation tool," said Grace Tam, chief investment adviser at BNP Paribas Wealth Management in Hong Kong.
In any case, speed of the selloff pointed to pain.
Source: Yahoo Finance
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Dr. Zoidberg
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Dr. Zoidberg
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Re: US Politics Thread
EU takes revenge on Trump's tariffs as countries approve €20B+ retaliation
Brussels is now set to strike back against U.S. president's steel and aluminum measures.
BRUSSELS — The EU can apply retaliatory tariffs on around €22 billion of U.S. products like soybeans, motorcycles and orange juice after the bloc's 27 countries assented to the measures on Wednesday, the European Commission announced.
"The EU considers U.S. tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy. The EU has stated its clear preference to find negotiated outcomes with the U.S., which would be balanced and mutually beneficial," the EU executive said in a statement.
Hitting back against U.S. President Donald Trump's steel and aluminum tariffs, the European Union's countermeasures will apply in three rounds. After some go into force next week, others will apply from mid-May and the final round follows in December.
Only Hungary opposed the package, according to four EU diplomats with direct knowledge of the vote, while all other 26 countries voted in favor.
"Escalation is not the answer. Such measures would cause further damage to European economy and citizens by raising prices. The only way forward is negotiations, not retaliation," Hungary's Foreign and Trade Minister Péter Szijjártó said in a post on X.
Fourteen EU countries would have needed to vote against the retaliation, which had been seen as unlikely considering the shows of unity in recent weeks.
The retaliation does not yet respond to Trump's imposition of 20 percent "reciprocal" tariffs on all EU exports, which came into force on Wednesday, and his latest 25 percent tariff on cars. Trump has also said tariffs on pharmaceuticals are coming soon.
The European Commission is considering putting forward its countermeasures on those tariffs as early as next week. "It will for sure be soon. I expect it could be as early as next week," trade spokesperson Olof Gill said Tuesday.
Trump demands that the EU reduce its trade surplus with the U.S., for instance by buying unrealistic amounts of gas or lowering safety standards on cars.
While Europe indeed sells more goods to Americans, the U.S. in turn enjoys a surplus when it comes to services. Overall, the €1.3 trillion trade relationship is off by only some €50 billion. Commission President Ursula von der Leyen this week revived the idea of scrapping all industrial tariffs — in a "zero-for-zero" deal — on a mutual basis.
Source: Politico
Brussels is now set to strike back against U.S. president's steel and aluminum measures.
BRUSSELS — The EU can apply retaliatory tariffs on around €22 billion of U.S. products like soybeans, motorcycles and orange juice after the bloc's 27 countries assented to the measures on Wednesday, the European Commission announced.
"The EU considers U.S. tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy. The EU has stated its clear preference to find negotiated outcomes with the U.S., which would be balanced and mutually beneficial," the EU executive said in a statement.
Hitting back against U.S. President Donald Trump's steel and aluminum tariffs, the European Union's countermeasures will apply in three rounds. After some go into force next week, others will apply from mid-May and the final round follows in December.
Only Hungary opposed the package, according to four EU diplomats with direct knowledge of the vote, while all other 26 countries voted in favor.
"Escalation is not the answer. Such measures would cause further damage to European economy and citizens by raising prices. The only way forward is negotiations, not retaliation," Hungary's Foreign and Trade Minister Péter Szijjártó said in a post on X.
Fourteen EU countries would have needed to vote against the retaliation, which had been seen as unlikely considering the shows of unity in recent weeks.
The retaliation does not yet respond to Trump's imposition of 20 percent "reciprocal" tariffs on all EU exports, which came into force on Wednesday, and his latest 25 percent tariff on cars. Trump has also said tariffs on pharmaceuticals are coming soon.
The European Commission is considering putting forward its countermeasures on those tariffs as early as next week. "It will for sure be soon. I expect it could be as early as next week," trade spokesperson Olof Gill said Tuesday.
Trump demands that the EU reduce its trade surplus with the U.S., for instance by buying unrealistic amounts of gas or lowering safety standards on cars.
While Europe indeed sells more goods to Americans, the U.S. in turn enjoys a surplus when it comes to services. Overall, the €1.3 trillion trade relationship is off by only some €50 billion. Commission President Ursula von der Leyen this week revived the idea of scrapping all industrial tariffs — in a "zero-for-zero" deal — on a mutual basis.
Source: Politico
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Dr. Zoidberg
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ian
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Dr. Zoidberg
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Dr. Zoidberg
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