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Fast Company
5 days ago
- Business
- Fast Company
Tariffs and trade wars: How businesses can prepare for the storm
I've lived through the chaos that tariffs and trade wars can unleash. If you run a business, invest in global markets, or simply care about the cost of living, you can't afford to ignore them. Tariffs may sound like policy jargon, but the ripple effects hit everything from your bottom line to the checkout line. Let's break down what tariffs are, the pros and cons of their use, and, more importantly, how to prepare when a trade war erupts. WHAT ARE TARIFFS? Tariffs are taxes placed on imported goods. Governments use them to make foreign products more expensive, thereby giving domestic producers a price advantage. Sounds smart in theory—but the reality is far more complicated. THE PROS OF TARIFFS 1. Protecting domestic industries One of the biggest advantages of tariffs is that they shield homegrown businesses from cheaper foreign competition. When a country imposes tariffs on imported steel, for example, it allows local steel manufacturers to remain competitive—even if they can't produce at the same low cost. 2. Encouraging local production Tariffs can serve as a catalyst for companies to source and produce locally. This boosts domestic employment and helps create self-sufficiency in key industries. 3. Leverage in negotiations Tariffs can be used as a bargaining chip. They give governments leverage when negotiating trade agreements, especially when other countries have unfair trade practices. THE CONS OF TARIFFS 1. Higher consumer prices Let's not sugarcoat it: Tariffs raise prices. When import costs rise, companies pass those costs on to consumers. That new washing machine or car you were eyeing? It's going to cost more. 2. Retaliation Trade wars don't happen in a vacuum. When one country imposes tariffs, others retaliate. Suddenly, your exports are getting hit with taxes abroad, and your once-thriving international sales dry up. 3. Supply chain disruption If you're sourcing components from multiple countries, tariffs can wreck your entire production line. Suddenly, your materials are delayed, your costs spike, and your margins evaporate. 4. Uncertainty for business planning I've seen companies delay major investments, hiring, and expansion plans simply because they couldn't predict where the next tariff would land. Uncertainty is toxic for growth. HOW TO PREPARE FOR A TRADE WAR As someone who believes in being proactive rather than reactive, I've developed a few strategies that can help any business or investor prepare for trade tensions. 1. Diversify your supply chain. Don't rely on one country for critical materials or products. Spread your sourcing across multiple regions to reduce risk. Yes, it may cost more upfront—but it's a hedge against future disruption. 2. Monitor tariff trends and political signals. You need to keep your eyes on government policy like you watch your bottom line. Changes in administration, diplomatic relations, or economic pressure points can all signal that a trade war is brewing. 3. Lock in long-term contracts. When tariffs are looming, negotiate long-term deals with suppliers at current prices. It can save you a fortune when costs spike overnight. 4. Optimize operational efficiency. In times of uncertainty, lean operations matter. Invest in automation, streamline processes, and cut waste. The leaner you are, the more you can absorb shocks without bleeding out. 5. Build cash reserves. Trade wars can slow sales and inflate costs. Cash flow becomes king. Make sure you've built a financial cushion to ride out periods of turbulence. 6. Evaluate your pricing strategy. If tariffs raise your input costs, decide whether to pass them on to customers or absorb them. This is a strategic decision that depends on your brand, market position, and customer loyalty. 7. Consider reshoring or nearshoring. If the numbers make sense, bring production closer to home or to stable, allied countries. It reduces exposure to unpredictable international policies and shortens your supply chain. FINAL THOUGHTS Tariffs and trade wars are part of the modern global economy, like it or not. Some view them as necessary protection. Others see them as economic warfare. The truth lies somewhere in between. I don't believe in waiting around to see which way the wind blows. I believe in staying prepared. You don't need to panic, but you do need a plan. Evaluate your exposure. Understand your risks. Diversify your operations. Then, when the next trade war hits—and it will —you won't just survive it. You can be one of the few standing tall in the storm, while others scramble to catch up. That's the difference between playing defense and playing to win.
Yahoo
6 days ago
- Business
- Yahoo
Undiscovered Gems in Asia to Explore This June 2025
As geopolitical tensions in the Middle East and trade-related concerns weigh on global markets, Asian stocks present a unique landscape of opportunities. With small-cap indices experiencing volatility, discerning investors may find potential in lesser-known companies that demonstrate resilience and innovation amidst changing economic conditions. Name Debt To Equity Revenue Growth Earnings Growth Health Rating Toho 72.03% 6.01% 64.19% ★★★★★★ Yashima Denki 2.40% 0.14% 21.00% ★★★★★★ FALCO HOLDINGS 4.93% -0.16% 1.44% ★★★★★★ Hefei Gocom Information TechnologyLtd NA 9.11% -12.23% ★★★★★★ Center International GroupLtd 18.20% 0.69% -31.63% ★★★★★★ ISE Chemicals 1.40% 15.34% 32.61% ★★★★★★ Shanghai SK Automation TechnologyLtd 37.27% 33.22% 12.18% ★★★★★☆ Guangdong Transtek Medical Electronics 18.14% -7.58% -3.26% ★★★★★☆ Daoming Optics&ChemicalLtd 33.83% 1.38% 5.82% ★★★★★☆ ITCENGLOBAL 66.11% 16.65% 1.99% ★★★★★☆ Click here to see the full list of 2614 stocks from our Asian Undiscovered Gems With Strong Fundamentals screener. Underneath we present a selection of stocks filtered out by our screen. Simply Wall St Value Rating: ★★★★★★ Overview: Snt Dynamics Ltd. engages in the manufacturing and sale of precision machinery, with a market capitalization of ₩1.25 trillion. Operations: Snt Dynamics Ltd. generates revenue primarily from its Machinery Business and Transportation Equipment Business, with the latter contributing significantly more at ₩672.52 billion compared to the former's ₩2.88 billion. Snt Dynamics Ltd. stands out in the aerospace and defense sector with a robust 96% earnings growth over the past year, surpassing industry averages. Despite its small size, this debt-free company boasts a favorable price-to-earnings ratio of 12.4x, slightly undercutting the KR market's 12.6x benchmark. Recent financials reveal net income at KRW 17,769 million for Q1 2025, up from KRW 12,880 million last year. The firm announced a private placement to issue bonds worth KRW 110 billion which are fully exchangeable into shares starting July 2025; such strategic moves may bolster future growth prospects significantly. Get an in-depth perspective on Snt DynamicsLtd's performance by reading our health report here. Evaluate Snt DynamicsLtd's historical performance by accessing our past performance report. Simply Wall St Value Rating: ★★★★★☆ Overview: Daou Technology Inc., along with its subsidiaries, offers IT and finance services and has a market capitalization of approximately ₩1.42 trillion. Operations: Daou Technology Inc. generates revenue primarily from its finance segment, with significant contributions from the Finance - Wholesale General Manager (₩8.22 billion) and Finance - Retail General Manager (₩2.52 billion) divisions. The non-financial segment includes System Construction, which adds ₩452.49 million to the revenue stream. Daou Technology, a noteworthy player in the tech sector, has shown impressive financial strides. With earnings growth of 76.1% over the past year, it outpaced its industry peers significantly. The company reported sales of KRW 21.28 billion for Q1 2025, up from KRW 12.50 billion last year, though net income slightly dipped to KRW 102.11 million from KRW 103.12 million previously. Despite not being free cash flow positive, Daou's interest payments are well-covered by EBIT at a robust rate of 97 times coverage and its debt-to-equity ratio improved from over five years to stand at a healthier level today. Dive into the specifics of Daou Technology here with our thorough health report. Assess Daou Technology's past performance with our detailed historical performance reports. Simply Wall St Value Rating: ★★★★☆☆ Overview: Gallant Micro. Machining Co., Ltd. specializes in the production and sale of machinery, equipment, precision molds, and various components across Taiwan, China, and international markets with a market cap of NT$16.65 billion. Operations: Gallant Micro. Machining Co., Ltd. generates revenue primarily from its machinery and equipment segment, with NT$1.81 billion attributed to this area, supplemented by contributions from KMC Corporation at NT$755.95 million. Gallant Micro. Machining, a small player in the semiconductor space, has shown impressive earnings growth of 40.9% over the past year, outpacing the industry's 10.8%. Despite this growth, their recent Q1 2025 results reported a drop in sales to TWD 430.22 million from TWD 695.32 million and net income to TWD 45.84 million from TWD 139.36 million year-over-year, reflecting challenges amid volatility in share prices over three months. The debt-to-equity ratio has increased significantly from 44% to 91%, though with a satisfactory net debt level at just over 13%, interest coverage remains solid and non-cash earnings are high. Click here and access our complete health analysis report to understand the dynamics of Gallant Micro. Machining. Examine Gallant Micro. Machining's past performance report to understand how it has performed in the past. Investigate our full lineup of 2614 Asian Undiscovered Gems With Strong Fundamentals right here. Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments. Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets. 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 KOSE:A003570 KOSE:A023590 and TPEX:6640. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Reuters
10-06-2025
- Business
- Reuters
AMERICAS White smoke or London fog?
LONDON, June 10 (Reuters) - What matters in U.S. and global markets today I'm excited to announce that I'm now part of Reuters Open Interest (ROI), opens new tab, an essential new source for data-driven, expert commentary on market and economic trends. You can find ROI on the Reuters website, opens new tab, and you can follow us on LinkedIn, opens new tab and X., opens new tab Markets have effectively flatlined awaiting the outcome of this week's U.S.-China trade talks in London, though as we near the halfway point of 2025, investors are taking an increasingly benign view of the disruptive and often chaotic last six months, as I discuss in today's column. But now onto all of today's market news. Today's Market Minute * Global stocks and the dollar edged higher on Tuesday as trade talks between the United States and China were set to extend to a second day, giving investors some reason to believe tensions between the world's two largest economies may be easing. * The Trump administration on Monday ordered U.S. Marines into Los Angeles and intensified raids on suspected undocumented immigrants, fueling more outrage from street protesters and Democratic leaders who raised concerns over a national crisis. * All three major U.S. asset classes – stocks, bonds and the currency – have had a turbulent 2025 thus far, but only one has failed to weather the storm: the dollar. Hedging may be a major reason why, claims ROI columnist Jamie McGeever. * Asian countries aren't rushing to buy U.S. energy commodities, even though doing so would help them meet President Donald Trump's demand for lower trade surpluses. Read the latest from ROI columnist Clyde Russell. * European defence stocks have been on a tear since the devastating conflict in Ukraine started in 2022, a trend that has only accelerated since announcements of European rearmament plans. But the beneficial economic impact of the European defence supercycle may be heavily dependent on how it's financed, argues Panmure Liberum investment strategist Joachim Klement. White smoke or London fog? U.S. and Chinese officials resumed trade talks for a second day in London on Tuesday, hoping to secure a breakthrough over export controls on rare earths and other issues threatening to widen the rupture between the world's two biggest economies. The two delegations, led on the U.S. side by Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer opposite a Chinese contingent helmed by Vice Premier He Lifeng, are meeting at the ornate Lancaster House in the British capital. The talks ran for almost seven hours on Monday and are set to resume on Tuesday, with both sides expected to issue updates. Lutnick said the talks would continue all day. U.S. President Donald Trump said the talks were difficult but going well: "We're doing well with China. China's not easy." White House economic adviser Kevin Hassett on Monday said the U.S. was likely to agree to lift export controls on some semiconductors in return for China speeding up the delivery of rare earths. Wall Street stocks (.SPX), opens new tab were little changed on Monday, with a marginal outperformance for the tech sector . Treasuries were in better form, with yields on long-term maturities ebbing in a week of heavy new debt sales. Those start with a $58 billion auction of 3-year notes later on Tuesday, followed by sales of 10- and 30-year tenors on Wednesday and Thursday. The U.S. May consumer price report tomorrow will barrel into the middle of everything. On that score, the New York Federal Reserve's monthly household survey for May showed Americans' anxiety about the future path of inflation easing last month. That tallies with a broader investor take on the tariff crunch. Many seem to feel that the worst fears are being scaled back as bilateral deals get thrashed out and business sentiment appears to calm. However, the resilience likely hinges on further détente in the trade war. And that's why this week's London talks are so important, especially given that Trump's 90-day pause on wider 'reciprocal' tariffs ends early next month. On the currency front, sterling weakened as Bank of England easing bets rose following the release of the latest UK labor data. Pay growth in Britain slowed sharply, and unemployment rose to its highest in nearly four years in the three months to April. Elsewhere, European (.STOXXE), opens new tab and Chinese stocks (.CSI300), opens new tab were more downbeat and lower on the day. Japan's Nikkei (.N225), opens new tab bucked that trend and pushed higher due to reduced fears about the domestic bond market. European indexes were weighed down partly by a reversal of recent gains for Swiss banking giant UBS (UBSG.S), opens new tab. The stock retreated as much as 7% as Swiss markets reopened after a long weekend and investors reacted to government proposals that would require the bank to hold an additional $26 billion in capital. Vaccine makers such as AstraZeneca (AZN.L), opens new tab and Sanofi ( opens new tab pushed higher, brushing off news that U.S. Health Secretary Robert Kennedy fired all 17 members of a Centers for Disease Control and Prevention panel of vaccine experts. Be sure to check out today's column, which looks at why a turbulent year so far for markets is being perceived more positively as half-time in 2025 approaches. Chart of the day While sentiment survey readings should be taken with a grain of salt, it is still notable that the New York Federal Reserve's household survey for May showed Americans' anxiety about the future path of inflation easing, with the outlook for inflation ebbing across all time horizons. Five years from now, the public expects inflation to be running at 2.6%, a sliver below April's 2.7% outlook, although still well above the Fed's 2% inflation target. Market pricing shows five-year inflation 'breakevens' from the inflation-protected Treasury market slightly lower at about 2.35%, and the five-year inflation swaps market comes in around 2.45%. Today's events to watch * U.S. May NFIB small business survey (6:00 AM EDT) * U.S. Treasury auctions $58 billion of 3-year notes * U.S. corporate earnings: JM Smucker Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, opens new tab, is committed to integrity, independence, and freedom from bias.
Bloomberg
27-05-2025
- Business
- Bloomberg
Japanese Bonds Face Renewed Test With 40-Year Sale After Selloff
Demand for Japanese government bonds is set for a test Wednesday with the first sale of super-long debt since an auction last week sent jitters through global markets as yields raced to record highs. The Ministry of Finance's 40-year debt sale comes at a time when long-term borrowing costs have also surged in other major economies, including the US. Japan's super-long bonds became increasingly unstable after last week's 20-year debt auction drew the weakest demand in more than a decade. That put pressure on the 40-year as well as the 30-year maturity, which saw yields jump to their highest levels since they were first sold.
Yahoo
22-05-2025
- Business
- Yahoo
3 Global Stocks Estimated To Be Trading Below Fair Value In May 2025
As global markets react positively to the recent U.S.-China tariff suspension, with major indices such as the Nasdaq Composite and S&P 500 showing significant gains, investors are keenly observing how these developments might influence broader economic trends. Amidst easing inflationary pressures and shifting consumer sentiment, identifying stocks that are potentially undervalued becomes particularly relevant for those looking to capitalize on market inefficiencies. In this context, a good stock is often characterized by strong fundamentals and a valuation that suggests it is trading below its intrinsic worth, offering potential for growth as market conditions stabilize. Name Current Price Fair Value (Est) Discount (Est) Shenzhen KSTAR Science and Technology (SZSE:002518) CN¥22.66 CN¥45.07 49.7% Zhuhai CosMX Battery (SHSE:688772) CN¥13.50 CN¥26.95 49.9% Brangista (TSE:6176) ¥591.00 ¥1174.50 49.7% Lectra (ENXTPA:LSS) €23.70 €46.94 49.5% Kolmar Korea (KOSE:A161890) ₩85200.00 ₩168919.13 49.6% Boreo Oyj (HLSE:BOREO) €15.45 €30.61 49.5% Montana Aerospace (SWX:AERO) CHF19.92 CHF39.83 50% Kanto Denka Kogyo (TSE:4047) ¥833.00 ¥1650.53 49.5% 3U Holding (XTRA:UUU) €1.525 €3.03 49.7% SpiderPlus (TSE:4192) ¥462.00 ¥918.79 49.7% Click here to see the full list of 507 stocks from our Undervalued Global Stocks Based On Cash Flows screener. Here's a peek at a few of the choices from the screener. Overview: Almirall, S.A. is a biopharmaceutical company specializing in skin health, operating across various regions including Spain, Europe, the Middle East, the United States, Asia, and Africa with a market cap of €2.23 billion. Operations: Almirall generates its revenue from its focus on dermatological products and treatments across multiple regions including Europe, the United States, and other international markets. Estimated Discount To Fair Value: 26.5% Almirall is trading at €10.46, significantly below its estimated fair value of €14.23, indicating potential undervaluation based on discounted cash flow analysis. Despite a low forecasted return on equity of 9.5% in three years, earnings are expected to grow at 32.87% annually, outpacing the Spanish market's growth rate. Recent earnings reports show strong performance with Q1 net income rising to €21.6 million from €7.4 million last year, supporting positive future prospects despite share price volatility and one-off financial impacts. The growth report we've compiled suggests that Almirall's future prospects could be on the up. Delve into the full analysis health report here for a deeper understanding of Almirall. Overview: Norbit ASA offers technology solutions across various industries and has a market capitalization of NOK12.42 billion. Operations: Revenue Segments (in millions of NOK): Estimated Discount To Fair Value: 41.9% Norbit ASA is trading at NOK 195.2, significantly below its estimated fair value of NOK 335.92, highlighting potential undervaluation based on discounted cash flow analysis. Despite insider selling, the company's earnings grew by 85.1% last year and are forecasted to grow at 23.4% annually, surpassing the Norwegian market's growth rate. Recent Q1 results show strong performance with net income rising to NOK 89.7 million from NOK 30.2 million a year ago, supporting positive future prospects amidst new contracts and strategic growth initiatives. The analysis detailed in our Norbit growth report hints at robust future financial performance. Navigate through the intricacies of Norbit with our comprehensive financial health report here. Overview: Asmodee Group AB (publ) is involved in the publishing and distribution of tabletop games, with a market capitalization of SEK29.55 billion. Operations: The company generates revenue primarily from its Games & Toys segment, amounting to €1.30 billion. Estimated Discount To Fair Value: 15.1% Asmodee Group AB is trading at SEK 126.44, below its estimated fair value of SEK 148.86, suggesting undervaluation based on cash flows. Although revenue grew by 2.8% last year and is forecast to grow at a modest 5.5% annually, earnings are expected to increase significantly by 68.03% per year over the next three years, outpacing market growth expectations despite a low future return on equity forecast of 8%. Our comprehensive growth report raises the possibility that Asmodee Group is poised for substantial financial growth. Unlock comprehensive insights into our analysis of Asmodee Group stock in this financial health report. Discover the full array of 507 Undervalued Global Stocks Based On Cash Flows right here. Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks. Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. 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 BME:ALM OB:NORBT and OM:ASMDEE B. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
