Markets Cheer Japan Deal, Worry About What’s Next | World Business Watch

Markets Cheer Japan Deal, Worry About What’s Next | World Business Watch

While a new US Japan trade deal has offered some short-term relief to investors, the broader impact of tariff uncertainty is becoming hard to ignore. While governments are racing against deadlines to strike deals, but for many industries, the damage is already showing up on the balance sheet. Between July 16th and 22nd alone, companies reported combined annual losses of 6.6 to 7.8 billion led by auto aerospace and pharma firms. From rising input costs and delayed investments to disrupted supply chains and shifting trade flows, the economic fallout is spreading across sectors and geographies. Many steel making firms reported weak earnings due to tariffled disruptions. Businesses are reporting pressure on margins as higher cost feed through to operations. Supply chains have been reconfigured not out of strategy but out of necessity with many firms now paying more for critical tools and components. Well, despite downbeat earnings, global stock markets rallied after the US and Japan announced a trade deal. The agreement stirred hopes of a similar outcome with the EU ahead of the August 1st deadline. But analysts warn the worst may not be over. Trump continues to threaten new sectoral tariffs on chips, pharmaceuticals, and metals with Canada, Brazil, and EU still in the crosshairs. Now, Deutsch Bank notes in far from the end of the tariff wave that’s already shaken investor confidence in disrupted supply chains. As earning season continues, investors are looking to major reports from Tesla, Alphabet, Nestle, LVMH, Inforces, and Hyundai for clarity on how companies are managing rising costs, regulatory shifts, and bottlenecks. Now with an EU China summit and US China talks scheduled this week, global lenders are under pressure to avert further disruption and stabilize trade flows. [Music]

While a new US-Japan trade deal has offered some short-term relief to investors, the broader impact of tariff uncertainty is becoming hard to ignore. Governments are racing against deadlines to strike deals, but for many industries, the damage is already showing up on the balance sheet.

#trump #japan #trade

About Channel:

WION The World is One News examines global issues with in-depth analysis. We provide much more than the news of the day. Our aim is to empower people to explore their world. With our Global headquarters in New Delhi, we bring you news on the hour, by the hour. We deliver information that is not biased. We are journalists who are neutral to the core and non-partisan when it comes to world politics. People are tired of biased reportage and we stand for a globalized united world. So for us, the World is truly One.

Please keep discussions on this channel clean and respectful and refrain from using racist or sexist slurs and personal insults.

Subscribe to our channel at https://goo.gl/JfY3NI
Check out our website: http://www.wionews.com
Join our WhatsApp Channel: https://bit.ly/455YOQ0
Connect with us on our social media handles:
Facebook: https://www.facebook.com/WIONews
Twitter: https://twitter.com/WIONews
Instagram: https://www.instagram.com/wionews/
Follow us on Google News for the latest updates

Zee News:- https://bit.ly/2Ac5G60
Zee Business:- https://bit.ly/36vI2xa
DNA India:- https://bit.ly/2ZDuLRY
WION: https://bit.ly/3gnDb5J
Zee News Apps: https://bit.ly/ZeeNewsApps