June PCE up.. / Tariffs man is back, letters sent ! / MAG7 declining cash flows / SHARP turn in risk last 24h !

Stéphan
Aug 1
3 min read

Happy Swiss National day... 39%, thanks Donald !
Markets : tariffs kicking in again, letters sent to most with a bill attached, Trump imposes sweeping new tariffs on trading partners: announced fresh tariffs of up to 41% on imports from dozens of countries, including Canada (35%), India (25%), Taiwan (20%) and Switzerland (39%), prompting concern over rising global trade tensions drugamakers got their letters too, Big Techs reported, bit of a headfake in MSFT and META, AMZN disapointed on guidance last night, APPL knocked it out of the park, but and NVDA got hit on China news, AND MAG7's declining cashflows on HUGE CAPEX spending lately - followed by big layoffs...Copper gave up all its gains, as Trump went ahead with his 50% tariffs on copper importas, BUT exempted refined metals (which is main part of it all) >>> ALL in ALL combo of tariff man back, higher PCE inflation (quelle surprise), MAG7 overdone, margin debt, copper, high uncertainty around Trump's erratic decisions, a market 'fully' invested and chasing large caps (mainly-concentraded risk..!!) could NOW matter hugely in August, low liquidities etc, a correction was well overdue, looks like it's kicked in!
Donald Trump set a 10% minimum global tariff, while imports from countries with trade surpluses with the US will face duties of 15% or higher. Levies on Canadian imports will be increased to 35%, but USMCA goods remain exempt. Switzerland got a 39% rate, India 25%, Taiwan 20%, Mexico has a 90 day pause. China tariffs are being negotiated in a separate track, currently postponed until Aug 12 (BBG, FT, WSJ)
Drugmakers including Eli Lilly and Novo were sent letters from Trump, who demanded they cut US prices to match foreign rates, giving them 60 days to comply or face consequences
American businesses have been absorbing Trump’s tariffs so far, but eventually the burden will be shifted on to American consumer — Fed Chair Powell
Berkshire Hathaway’s cash position is now 30% of their total assets - Quite right!