Heavy Levies: The Bloomberg Open, Asia Edition
Good morning. Canada will hit Beijing with levies on EVs. Traders dump China, load up on EM bond ETFs. And Hong Kong’s hack for achieving abstinence is badminton.
Canada will impose 100% tariffs on Chinese-made EVs and 25% on steel and aluminum to protect domestic manufacturers, starting in October. Semiconductors, batteries, solar products and critical minerals are also under review. China urged Ottawa to correct the “wrong practices.”
The S&P 500 struggled for momentum as traders rotated out of tech shares, even as Goldman’s Scott Rubner said the equity benchmark may hit a fresh record later this week. The Fed’s Mary Daly said it’s time to cut rates. Oil surged as Libya’s rival eastern government will stop all crude production and exports.Temu owner PDD’s ADRs plunged after it warned of slowing sales. Colin Huang’s reign as China’s richest person only lasted about two weeks. The founder’s fortune tumbled by $14.1 billion, his biggest one-day loss ever.
Investors pulled money from ETFs that buy Chinese stocks last week amid concern over the country’s economy, while they loaded up on EM debt on hopes the Fed will begin easing.
Donald Trump had a busy day. Special counsel Jack Smith asked a federal appeals court to reinstate the case against the ex-president for mishandling classified documents. Trump also cast doubt on whether he’ll attend the Sept. 10 debate with Kamala Harris, and he plans to make Bitcoin “Made in the USA” threatens the reign of China’s Bitmain.In other news:
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Narendra Modi’s agenda will continue to struggle unless he adds new talent to the Indian state’s tiny cadre of top civil servants, Mihir Sharma writes. The government has too few senior officers, and those it does have generally aren’t experts.
Political dynasties are becoming a worrying trend in Southeast Asia, writes Karishma Vaswani. Throughout Southeast Asia, family ties are binding political clans together in a way that threatens democracy and disadvantages the region’s youth.
Keep your eye on the birdie. Hong Kong has advice to help teens avoid sexual temptation, the NYT reported. New sex-ed materials suggest studying more—or playing badminton. Instead of “benefits,” amused teens now talk about having “friends with badminton.”
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