Latest news with #EconomicUncertainty
News.com.au
19 hours ago
- Business
- News.com.au
US share exodus: Aussies sell their US stocks on Trump fears
Australian retail investors are ditching the United States and moving their money to 'stable' economies on the back of US President Donald Trump's 'Liberation Day.' New retail data from investing platform eToro, who asked 10,000 retail investors across 14 countries, including 1,000 from Australia showed a sharp trend away from America. According to eToro's data the downturn in enthusiasm for US markets reflects broader economic uncertainty, with 37 per cent of Aussie investors citing the global economy as the biggest threat to their investments – the highest figure recorded since Q2 2022. Inflation follows as the second biggest concern at 17 per cent. Instead of investing abroad, local investors are increasing their exposure to Australian markets. eToro managing director Robert Francis told NewsWire a combination of US policies and high valuations have retail investors sceptical of investing in the world's largest market going forward. 'People are beginning to realise the US exceptionalism isn't what it was a year or two ago with the inauguration of Trump has meant a lot of uncertainty,' he said. Rayeiris Maduro Rondon, an investor based in Sydney after relocating from Venezuela told NewsWire it is her opinion that the days of the US exceptionalism has 'paused' as she shifts to Europe and China. 'I view this more as a period of recalibration rather than decline,' she said. 'Historically, when markets trade at elevated valuations for extended periods, investors begin to see high multiples as 'the normality' and price in unrealistic growth expectations. 'That's where the U.S. stands today.' While she still holds some US investments on a 'reasonable valuation,' she said there are better opportunities abroad. 'In Europe and Asia, I'm finding businesses with higher returns on capital and strong cash flows trading at deeply discounted valuations, making them far more attractive from a risk-adjusted perspective,' she said. Alert not alarmed Australian investors are split on what the current market volatility means for them. eToro's survey data showed 35 per cent of Aussies are more vigilant about their portfolio while a further 28 per cent are feeling anxious. On the flipside, 24 per cent are actually hopeful or excited about the large market swings. This optimism extends to investing strategies, with over a quarter of Aussie retail investors seeing a decline of 10 per cent or less as an opportunity to buy the dip. eToro's market analyst Josh Gilbert said investors are alert but not all of them are alarmed. 'Many see recent market dips as buying opportunities, which signals a level of confidence in long-term market resilience, he said. 'The risk of being out of the market altogether is something savvy investors are acutely aware of. 'The recent rebound in global equities since April has reinforced that view, even in uncertain times.' It has been a volatile ride for investors since Mr Trump took office for global markets initially rallying before hitting a bear market on April 2, with the announcement of Liberation Day. The wide-ranging tariffs were touted as Liberation Day for the US, with Mr Trump arguing it would level out the playing field. In a list of countries, Australia was 21st with a 10 per cent tariff on all goods imported into the US. The ASX slumped 11.4 per cent in the five days following 'Liberation Day', while the US S & P 500 fell around 12 per cent while the Dow Jones dropped 11 per cent. In both the Australia and the US shares quickly recovered after Mr Trump announced a temporary pause on his tariff policies. Mr Francis said this was a dramatic turnaround in investor confidence with the market initially rallying when Mr Trump returned to office. 'The whole market was buoyant with Trump's inauguration,' he said. 'I mean, we all thought investors, market commentators, all thought that we were going to see a continued bullish trend in the market. 'But given what we're seeing now around trade conflicts, tariffs that are being implemented, this is kind of, where is this going to go? 'All of this means that there's a level of uncertainty right now that doesn't bring confidence in investing in the US'. Some still move to safe assets Commodities have also been a favourite of Australian investors as they look to protect their positions. According to eToro's results, fears mount over a weaker US dollar and persistent inflation, Aussie retail investors are repositioning their portfolios, with nearly half of respondents having adjusted allocations or planning to. Mr Gilbert said 60 per cent of respondents said they expect gold prices to increase in the next 6–12 months, which reinforces its traditional role as an inflation hedge. 'Interestingly, we've seen Bitcoin's growing status among younger investors as a similar hedge. 'Out of local retail investors who are adjusting their portfolios based on a weaker USD, 27 per cent of Gen Z respondents said they will buy more crypto, the highest out of all generations. Indeed, 52 per cent of local Gen Z investors already hold crypto.'
Yahoo
6 days ago
- Business
- Yahoo
Undiscovered Gems in Europe for June 2025
Amidst a backdrop of geopolitical tensions and economic uncertainties, European markets have experienced notable fluctuations, with the pan-European STOXX Europe 600 Index ending 1.57% lower due to renewed trade policy concerns and Middle East conflicts. Despite these challenges, opportunities for discerning investors remain, particularly in identifying small-cap stocks that demonstrate resilience and potential for growth in a volatile environment. Name Debt To Equity Revenue Growth Earnings Growth Health Rating AB Traction NA 5.39% 5.24% ★★★★★★ Caisse Régionale de Crédit Agricole Mutuel Brie Picardie Société coopérative 26.90% 4.14% 7.22% ★★★★★★ Martifer SGPS 102.88% -0.23% 7.16% ★★★★★★ ABG Sundal Collier Holding 8.55% -4.14% -12.38% ★★★★★☆ Flügger group 20.98% 3.24% -29.82% ★★★★★☆ Sparta NA -9.54% -15.40% ★★★★★☆ Dekpol 63.20% 11.06% 13.37% ★★★★★☆ Alantra Partners 3.79% -3.99% -23.83% ★★★★★☆ Practic 5.21% 4.49% 7.23% ★★★★☆☆ Darwin 3.03% 84.88% 5.63% ★★★★☆☆ Click here to see the full list of 336 stocks from our European Undiscovered Gems With Strong Fundamentals screener. Let's uncover some gems from our specialized screener. Simply Wall St Value Rating: ★★★★★☆ Overview: Digital Value S.p.A. is an Italian company that offers IT solutions and services, with a market capitalization of €292.76 million. Operations: Digital Value S.p.A. generates revenue through its IT solutions and services in Italy. Digital Value, a European IT player, showcases notable earnings growth of 27.6% over the past year, outpacing the industry average of 10.1%. Despite its debt-to-equity ratio climbing from 19.7% to 27.5% in five years, the company maintains more cash than total debt and offers strong interest coverage with EBIT covering interest payments 14.5 times over. Trading at a significant discount—75.7% below estimated fair value—it presents an intriguing opportunity despite recent revenue and net income dips to €815 million and €35 million respectively for 2024 compared to the previous year's figures of €847 million and €38 million. Get an in-depth perspective on Digital Value's performance by reading our health report here. Examine Digital Value's past performance report to understand how it has performed in the past. Simply Wall St Value Rating: ★★★★★★ Overview: Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative offers a range of banking products and services to diverse client segments in France, with a market cap of approximately €1.23 billion. Operations: CRLA generates revenue primarily from its Retail Banking in France segment, contributing €456.43 million, alongside €106.65 million from Non-Business Activities. With total assets of €36.1 billion and equity at €5.5 billion, CRLA stands as a notable player in the financial sector, despite its small scale. The bank's loan portfolio of €28.8 billion is backed by deposits totaling €29.1 billion, ensuring a stable funding base primarily from customer deposits, which account for 95% of liabilities. A bad loan ratio of 1.4% indicates prudent risk management, complemented by a robust allowance for bad loans at 137%. Although recent earnings growth was negative at -1.3%, the stock trades at an attractive discount of 30% below estimated fair value. Click here and access our complete health analysis report to understand the dynamics of Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative. Understand Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative's track record by examining our Past report. Simply Wall St Value Rating: ★★★★★★ Overview: Sygnity S.A. is a company that manufactures and sells IT products and services both in Poland and internationally, with a market capitalization of PLN2.34 billion. Operations: Sygnity generates revenue primarily from its IT Segment, amounting to PLN303.73 million. SGN, a nimble player in the IT sector, has shown impressive financial health with its debt to equity ratio slashed from 51.1% to 3.1% over five years. The company reported a solid revenue increase for Q1 2025, reaching PLN 72.52 million from PLN 61.98 million year-on-year, and net income rising to PLN 10.63 million from PLN 7.47 million last year. Earnings per share also jumped to PLN 0.47 compared to PLN 0.33 previously, reflecting robust profit growth of over 41%, outpacing the industry average by a significant margin and highlighting SGN's potential for continued success in its market niche. Navigate through the intricacies of Sygnity with our comprehensive health report here. Learn about Sygnity's historical performance. Click this link to deep-dive into the 336 companies within our European Undiscovered Gems With Strong Fundamentals screener. Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive. Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BIT:DGV ENXTPA:CRLA and WSE:SGN. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
CNN
02-06-2025
- Business
- CNN
Big brands are staying quiet this Pride Month
For the last several years, Pride Month was a splashy marketing event for big brands. Stores adorned windows with rainbow flags, displayed LGBTQ-themed t-shirts and coffee mugs at their entrances, changed their logos on social media accounts, and spotlighted donations to LGBTQ rights groups. But this Pride Month, many retail chains and brands are going quiet. Companies are treading lightly, avoiding prominent campaigns and visible public support. Thirty-nine percent say they plan to scale back public Pride Month engagements this year, according to a survey of more than 200 corporate executives by Gravity Research, a risk management advisory. That includes sponsoring Pride events, posting supportive messages of LGBTQ rights on social media and selling Pride-themed merchandise. Consumer brands are wary of provoking right-wing customers and activists, and they fear reprisals from President Donald Trump's administration. Federal agencies have threatened to investigate companies with diversity, equity and inclusion programs. Many businesses are tightening their advertising spending due to economic uncertainty over Trump's tariffs. But businesses cited pressure from the Trump administration as the primary reason for changing their Pride Month approach, according to the survey. 'It's clear that the administration and their supporters are driving the change,' said Luke Hartig, the president of Gravity Research. 'Companies are under increasing pressure not to engage and speak out on issues.' The subdued approach marks a shift for businesses, which used to turn the annual June celebration of LGBTQ Americans into a branded holiday. It's part of a broader pivot in corporate America, with many businesses scrapping some of their programs to advance diversity in the workplace under pressure from the Trump administration and Republican activists. Advocates for gay, lesbian and transgender Americans say the Trump administration's opposition makes it harder for businesses to compete, innovate and attract talent. They also warn that companies risk losing business by downplaying support for their growing number of gay, lesbian and transgender customers and workers. The proportion of American adults who identify as LGBTQ has risen to 9.3% of the population. 'By weaponizing federal agencies like the EEOC and the Justice Department to intimidate companies that support LGBTQ+ inclusion, this administration is creating an anti-business, anti-worker atmosphere,' said Eric Bloem, the vice president of corporate citizenship at the Human Rights Campaign Foundation. Many businesses have stopped participating in the Human Rights Campaign's scorecard on corporate policies and benefits for LGBTQ employees due to backlash. 'Companies that show up only when it's convenient, or backtrack the moment there's political pressure, risk losing trust and credibility,' Bloem said. Companies are actively preparing for Pride-related backlash this year from conservative activists and consumers. Sixty-five percent of companies in Gravity Research's survey said they were preparing strategies to respond to blowback. A growing number of chains, including Walmart, Target, Kroger, have also been warning investors about the risks of consumer boycotts over corporate positions on social issues. Anger from the right over Bud Light and Target's marketing efforts, in particular, has had a chilling effect on corporate strategies for Pride Month. Bud Light sales tanked in 2023 after the company's partnership with transgender influencer Dylan Mulvaney sparked anti-trans backlash and boycotts. Bud Light's tepid response also angered LGBTQ rights advocates. In 2023, activists and customers on the right attacked Target on social media for its LGBTQ-themed merchandise during Pride Month. Target employees faced threats over items such as bathing suits designed for transgender people, and the company removed them from stores. Misinformation spread on social media that the swimsuits were marketed to children, which they were not. The backlash led to a drop in sales and lawsuits from Republican-aligned legal groups. Last year, Target sold Pride products in fewer stores and offered the full merchandise collection online. Target is again taking a muted approach to Pride Month this year. In 'select stores,' Target is selling a 'multi-category collection including home, pets, books, vinyl and adult apparel and accessories' to celebrate Pride, the company said in an email to employees viewed by CNN. Target is selling the full Pride product selection online. 'We are absolutely dedicated to fostering inclusivity for everyone – our team members, our guests, our supply partners, and the more than 2,000 communities we're proud to serve,' a Target spokesperson said. 'As we have for many years, we will continue to mark Pride Month by offering an assortment of celebratory products, hosting internal programming to support our incredible team and sponsoring local events in neighborhoods across the country.' But Target's Pride merchandise is limited and displayed less prominently in stores than in previous years, said one Target senior leader who spoke under the condition of anonymity because they were not authorized to speak publicly. Target store employee and customer excitement for Pride Month has dissipated as a result of the company's shift, according to the senior leader. 'It feels like we have catered to the direction of the administration,' this person said. Other companies are also dialing back public pronouncements, donations and merchandise in support of Pride Month. Last year, Kohl's launched a 'Pride capsule collection' of merchandise and donated $100,000 to The Trevor Project, a suicide prevention and crisis intervention organization for LGBTQ youth. 'As we use this month to embrace love in all forms, we simultaneously create more spaces for members of the LGBTQIA+ community to live out loud,' Michelle Banks, Kohl's-then chief diversity, equity & inclusion officer, said in a news release. (Banks is now Kohl's chief inclusion and belonging officer.) Kohl's has not announced any Pride Month plans this year and did not respond to CNN's requests for comment. Macy's last year touted that it hosted a donation campaign for The Trevor Project, spotlighted LGBTQ-owned brands, and set up displays in select Macy's windows and at local Pride marches nationwide. Macy's is supporting Pride events this month in a similar way, including participating in Pride events nationwide and raising money for The Trevor Project. But unlike previous years, the company is not making official announcements about its plans. Nordstrom, Gap and several other brands that highlighted their Pride Month efforts last year appear not to have repeated them this June. The companies did not respond to CNN about their plans. But a quieter marketing approach to Pride Month does not necessarily mean companies are abandoning support for LGBTQ employees or customers. 'I do see there's pivoting happening (for Pride Month). What I don't see is corporates walking away from the LGBTQ community,' said Sarah Kate Ellis, president of advocacy group GLAAD. 'They don't want to be caught in the crosshairs of this presidency, and they don't want to become the headline like Target or Bud Light.' Many companies are instead working behind the scenes to engage their LGBTQ employees and strengthen employee recruitment and retention strategies. Just 14% of companies reported plans to reduce internal engagement during Pride Month, according to Gravity Research. Corporate employees are providing counter-pressure to keep brands active on LGBTQ issues. 'Companies are going deeper and wider, rather than supporting an event,' Ellis said. 'They're finding better ways to thread their work supporting the LGBTQ community into their organizations.'
CNN
02-06-2025
- Business
- CNN
Big brands are staying quiet this Pride Month
For the last several years, Pride Month was a splashy marketing event for big brands. Stores adorned windows with rainbow flags, displayed LGBTQ-themed t-shirts and coffee mugs at their entrances, changed their logos on social media accounts, and spotlighted donations to LGBTQ rights groups. But this Pride Month, many retail chains and brands are going quiet. Companies are treading lightly, avoiding prominent campaigns and visible public support. Thirty-nine percent say they plan to scale back public Pride Month engagements this year, according to a survey of more than 200 corporate executives by Gravity Research, a risk management advisory. That includes sponsoring Pride events, posting supportive messages of LGBTQ rights on social media and selling Pride-themed merchandise. Consumer brands are wary of provoking right-wing customers and activists, and they fear reprisals from President Donald Trump's administration. Federal agencies have threatened to investigate companies with diversity, equity and inclusion programs. Many businesses are tightening their advertising spending due to economic uncertainty over Trump's tariffs. But businesses cited pressure from the Trump administration as the primary reason for changing their Pride Month approach, according to the survey. 'It's clear that the administration and their supporters are driving the change,' said Luke Hartig, the president of Gravity Research. 'Companies are under increasing pressure not to engage and speak out on issues.' The subdued approach marks a shift for businesses, which used to turn the annual June celebration of LGBTQ Americans into a branded holiday. It's part of a broader pivot in corporate America, with many businesses scrapping some of their programs to advance diversity in the workplace under pressure from the Trump administration and Republican activists. Advocates for gay, lesbian and transgender Americans say the Trump administration's opposition makes it harder for businesses to compete, innovate and attract talent. They also warn that companies risk losing business by downplaying support for their growing number of gay, lesbian and transgender customers and workers. The proportion of American adults who identify as LGBTQ has risen to 9.3% of the population. 'By weaponizing federal agencies like the EEOC and the Justice Department to intimidate companies that support LGBTQ+ inclusion, this administration is creating an anti-business, anti-worker atmosphere,' said Eric Bloem, the vice president of corporate citizenship at the Human Rights Campaign Foundation. Many businesses have stopped participating in the Human Rights Campaign's scorecard on corporate policies and benefits for LGBTQ employees due to backlash. 'Companies that show up only when it's convenient, or backtrack the moment there's political pressure, risk losing trust and credibility,' Bloem said. Companies are actively preparing for Pride-related backlash this year from conservative activists and consumers. Sixty-five percent of companies in Gravity Research's survey said they were preparing strategies to respond to blowback. A growing number of chains, including Walmart, Target, Kroger, have also been warning investors about the risks of consumer boycotts over corporate positions on social issues. Anger from the right over Bud Light and Target's marketing efforts, in particular, has had a chilling effect on corporate strategies for Pride Month. Bud Light sales tanked in 2023 after the company's partnership with transgender influencer Dylan Mulvaney sparked anti-trans backlash and boycotts. Bud Light's tepid response also angered LGBTQ rights advocates. In 2023, activists and customers on the right attacked Target on social media for its LGBTQ-themed merchandise during Pride Month. Target employees faced threats over items such as bathing suits designed for transgender people, and the company removed them from stores. Misinformation spread on social media that the swimsuits were marketed to children, which they were not. The backlash led to a drop in sales and lawsuits from Republican-aligned legal groups. Last year, Target sold Pride products in fewer stores and offered the full merchandise collection online. Target is again taking a muted approach to Pride Month this year. In 'select stores,' Target is selling a 'multi-category collection including home, pets, books, vinyl and adult apparel and accessories' to celebrate Pride, the company said in an email to employees viewed by CNN. Target is selling the full Pride product selection online. 'We are absolutely dedicated to fostering inclusivity for everyone – our team members, our guests, our supply partners, and the more than 2,000 communities we're proud to serve,' a Target spokesperson said. 'As we have for many years, we will continue to mark Pride Month by offering an assortment of celebratory products, hosting internal programming to support our incredible team and sponsoring local events in neighborhoods across the country.' But Target's Pride merchandise is limited and displayed less prominently in stores than in previous years, said one Target senior leader who spoke under the condition of anonymity because they were not authorized to speak publicly. Target store employee and customer excitement for Pride Month has dissipated as a result of the company's shift, according to the senior leader. 'It feels like we have catered to the direction of the administration,' this person said. Other companies are also dialing back public pronouncements, donations and merchandise in support of Pride Month. Last year, Kohl's launched a 'Pride capsule collection' of merchandise and donated $100,000 to The Trevor Project, a suicide prevention and crisis intervention organization for LGBTQ youth. 'As we use this month to embrace love in all forms, we simultaneously create more spaces for members of the LGBTQIA+ community to live out loud,' Michelle Banks, Kohl's-then chief diversity, equity & inclusion officer, said in a news release. (Banks is now Kohl's chief inclusion and belonging officer.) Kohl's has not announced any Pride Month plans this year and did not respond to CNN's requests for comment. Macy's last year touted that it hosted a donation campaign for The Trevor Project, spotlighted LGBTQ-owned brands, and set up displays in select Macy's windows and at local Pride marches nationwide. Macy's is supporting Pride events this month in a similar way, including participating in Pride events nationwide and raising money for The Trevor Project. But unlike previous years, the company is not making official announcements about its plans. Nordstrom, Gap and several other brands that highlighted their Pride Month efforts last year appear not to have repeated them this June. The companies did not respond to CNN about their plans. But a quieter marketing approach to Pride Month does not necessarily mean companies are abandoning support for LGBTQ employees or customers. 'I do see there's pivoting happening (for Pride Month). What I don't see is corporates walking away from the LGBTQ community,' said Sarah Kate Ellis, president of advocacy group GLAAD. 'They don't want to be caught in the crosshairs of this presidency, and they don't want to become the headline like Target or Bud Light.' Many companies are instead working behind the scenes to engage their LGBTQ employees and strengthen employee recruitment and retention strategies. Just 14% of companies reported plans to reduce internal engagement during Pride Month, according to Gravity Research. Corporate employees are providing counter-pressure to keep brands active on LGBTQ issues. 'Companies are going deeper and wider, rather than supporting an event,' Ellis said. 'They're finding better ways to thread their work supporting the LGBTQ community into their organizations.'
Forbes
20-05-2025
- Business
- Forbes
China Demonstrates High Cost Of Trumpian Uncertainty
getty China's 5.4% growth rate in the first three months of the year is as impressive as it is disorienting. On Tuesday, the People's Bank of China cut its key lending rates by 10 basis points. Governor Pan Gongsheng lowered the one-year loan prime rate to 3.0% from 3.1%, and the five-year rate to 3.5% from 3.6%. Not big moves, but symbolic ones as U.S. President Donald Trump's trade war takes an increasing toll on Chinese confidence. So far, Trump's tariffs haven't tackled Asia's biggest economy in the ways the White House had hoped. In fact, China even grew above its 5% target in the first quarter while the U.S. shrank 0.3%. Yet data releases Monday flashed telltale signs of the high cost of economic uncertainty — and a rising one at that. From softening data on retail sales, fixed asset investment, property prices, industrial production and other sectors, not knowing where tariffs will be six months from now is having a noticeable chilling effect. It's nice that Trump has, for now, pared his 145% China tax to 30%. But two caveats stand out here. One, this climbdown could be short-lived if Chinese leader Xi Jinping doesn't offer Trump a slew of concessions in bilateral trade talks. And Beijing watchers agree that's rather unlikely. Given the harsh rhetoric coming from Trump World, Xi can't be seen as bowing to Washington. Two, Trump's 30% level puts the tax in the neighborhood of the 1930s Smoot-Hawley Tariff Act that deepened the Great Depression. That 79% reduction is a step in the right direction, but it's still a formidable headwind for an economy that came into the Trump 2.0 era with serious preexisting conditions. Prior to January 20, China was struggling with a giant property crisis that's fueling deflation, near-record youth unemployment, a rapidly aging population and local governments dealing with trillions of dollars of debt. These challenges and others are undermining household demand. Even though China appears to be standing its ground, the tariffs are biting. And increasingly so. The PBOC's rate cuts are sure to accelerate as deflation becomes more ingrained. Chinese prices aren't falling precipitously. But factory-gate prices falling for 31st consecutive months, as they are in China, is never good. In April alone, producer prices dropped 2.7% year on year. Consumer prices are now down for three straight months. The PBOC's rate cut was its first since October, when it moved by 25 basis points. What's changed since then is easing trade-war tensions and a stronger yuan. For months, fears that the yuan might fall too far, too fast had Pan avoiding rate cuts. A weaker yuan might make it harder for property developers to pay back dollar-denominated debt, causing a new cycle of defaults. It might squander years of efforts to reduce leverage and bad lending decisions. It also would surely enrage the Trump White House, prompting it to supersize tariffs. "Today's reductions ... probably won't be the last this year," says Zichun Huang, China economist at Capital Economics. Until then, Huang says, 'the rate cuts will reduce interest payments on existing loans, taking some pressure off indebted firms. It will also reduce the price of new loans. But modest rate cuts alone are unlikely to boost loan demand or wider economic activity meaningfully.' In other words, the PBOC is in for a busy second half of 2025. So will Xi's fiscal policymakers. We still believe it will be quite challenging for Beijing to achieve its 'around 5%' growth target unless it rolls out a sizable stimulus package," says Ting Lu, chief China economist at Nomura. 'Considering the respite on the trade war, Beijing might be under less pressure to introduce the necessary stimulus and reforms." But given China's preexisting conditions and the fact that a 30% tariff on all shipments to the globe's biggest economy is no joke. Even worse than the current tariff is confusion about the level of levies down the road. Economic uncertainty comes at a very high price.
