Today’s agenda: Apple turns to India; Chinese fighters in Ukraine; US shale in peril; Putin’s nationalisation spree; and a speedboat tour of the Thames
Good morning. Global markets have rebounded after Donald Trump paused additional tariffs on most countries while doubling down on China. Here’s what you need to know.
A global rally: Markets surged in Asia this morning, while on Wall Street, the S&P 500 closed up 9.5 per cent — its best day since 2008 — and the Nasdaq Composite climbed more than 12 per cent, its strongest rise since 2001. Apple, Nvidia, Microsoft, Amazon, Meta and Tesla all jumped at least 10 per cent, while a heavy sell-off in US government debt eased.
What about China? Beijing’s additional 50 per cent tariffs on the US kicked in earlier today, raising its overall rate to 84 per cent, but investors will be on the lookout for additional tit-for-tat measures after Trump raised levies against China to 125 per cent, saying Beijing’s retaliatory duties showed a “lack of respect”. Analysts said there were no signs of serious talks between the two sides to resolve the crisis. China’s renminbi weakened today to its lowest level since 2007.
Beijing has mobilised a “national team” of state-owned funds and companies in a co-ordinated effort to bolster its stock market. At the same time, it has also stepped up diplomacy with other trading partners, including the EU and south-east Asia.
What happens next? Although some Wall Street banks have eased their predictions of a recession and markets have rallied, experts warn that the remaining tariffs will weigh on growth and push up prices. Uncertainty could deter investment, and investors may wait out Trump’s 90-day pause before jumping back into markets.
The president’s climbdown also ushers in a phase of what are expected to be multiple, parallel trade negotiations between the US and its top trading partners over the coming weeks. Follow the latest updates on our live blog.
For more analysis on the tariffs, sign up for our Trade Secrets newsletter if you’re a premium subscriber, or upgrade your subscription. Here’s what else we’re keeping tabs on today:
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Economic data: The US has its March consumer price index.
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Companies: Talks between the UK government and British Steel’s Chinese owner Jingye Group continue, as the steelmaker prepares to idle one of its two blast furnaces. Tesco reports full-year results.
Join Unhedged’s Robert Armstrong and other FT experts on April 23 for a subscriber-only webinar, as they break down how Trump’s policies are reshaping markets. Register for free.
Five more top stories
1. Apple is flying more iPhones from India to the US following Trump’s tariff blitz, with Indian officials saying the tech giant is considering further investment in the country. The move highlights Apple’s dilemma after counting on advanced manufacturing in China for decades. Read more about how the company has been quietly growing its business in India.
2. Volodymyr Zelenskyy said 155 Chinese nationals were fighting for Russia in Ukraine and accused Beijing of doing nothing to stop Moscow’s recruitment. The remarks raised questions about China’s claims of neutrality and could increase tensions with western governments. Zelenskyy said he believed “the real number is much higher”.
3. Baker Tilly is in talks to buy US rival Moss Adams in a more than $2bn deal that would vault it over Grant Thornton and BDO to become the country’s sixth-largest accounting firm by revenue, said people familiar with the matter. Stephen Foley has more from New York.
4. Falling oil prices triggered by Trump’s trade war have pushed parts of America’s shale sector to the brink of failure, executives have warned. US oil prices have fallen 12 per cent since Trump’s “liberation day” tariff announcement last week, leaving them below the level many producers in Texas say they need to break even.
5. Exclusive: Job cuts at the US traffic safety regulator by Elon Musk’s team disproportionately hit staff assessing self-driving risks, hampering oversight of technology key to Tesla’s future. The National Highway Traffic Safety Administration has long been a thorn in the side of Musk’s carmaker, with eight active investigations into the company.
The Big Read
Arizona recently issued KPMG a licence under its “alternative business structure” programme, which allows non-lawyers to own and run law firms. Lawyers and investors say the move, a notable departure from previous practice, is just the tip of the iceberg, with more than 100 permits granted to other businesses. Together, they could unleash a wave of private equity money and blow open US law.
We’re also reading . . .
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Russia’s asset grab: Vladimir Putin has been on a nationalisation spree even as he makes overtures to western companies.
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Lloyd’s of London: The inimitable insurance market is Britain’s strangest success, writes John Gapper, but it must remain attractive in the face of global competition.
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Saturday Night Live: A British version of the popular US comedy show could be in the works.
Chart of the day
It has been a rollercoaster ride for financial markets for the past week. Trump’s reversal triggered a massive rally yesterday, adding about $4.3tn in market value to the S&P 500.
Take a break from the news
A new thrill ride on the Thames launching today shows visitors the sights of London at 30 knots — and underlines the river’s transformation from industrial artery to leisure opportunity.
Read the full article here