Google And Meta Are Scrambling To Copy TikTok. Can They Catch up?

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108136098-17455036212025-04-24t134926z_586299269_rc2d4ea8bz9f_rtrmadp_0_usa-stocks-820x547.jpeg" alt="" class="wp-image-613534" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108136098-17455036212025-04-24t134926z_586299269_rc2d4ea8bz9f_rtrmadp_0_usa-stocks-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108136098-17455036212025-04-24t134926z_586299269_rc2d4ea8bz9f_rtrmadp_0_usa-stocks-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108136098-17455036212025-04-24t134926z_586299269_rc2d4ea8bz9f_rtrmadp_0_usa-stocks-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108136098-17455036212025-04-24t134926z_586299269_rc2d4ea8bz9f_rtrmadp_0_usa-stocks-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108136098-17455036212025-04-24t134926z_586299269_rc2d4ea8bz9f_rtrmadp_0_usa-stocks-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108136098-17455036212025-04-24t134926z_586299269_rc2d4ea8bz9f_rtrmadp_0_usa-stocks-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



Emerging markets have found themselves between a rock and a hard place amid an escalating trade war, seemingly forced to choose between China and the U.S. But there’s another way: they’re backing themselves.



“Southeast Asian countries, including Malaysia, have to negotiate with the U.S. to come up with some sort of a soft-landing spot,” Ong Kian Ming, Malaysia’s former deputy minister of international trade and industry, told CNBC. “But at the same time, it doesn’t prevent us from working with other countries — not to screw the U.S., but to benefit ourselves.”



Southeast Asia is particularly vulnerable to an escalating global trade war. Goldman Sachs has cut its growth forecasts for Asian emerging markets, saying smaller export-oriented economies are the most exposed to the tariff turmoil.&nbsp;



The bank’s 2025 GDP forecast for Vietnam is now 5.3% — significantly lower than consensus estimates of 6.5% cited by Goldman. The bank expects Malaysia to grow by 3.8% (compared to 4.7%) next year, and Thailand to expand by 1.5% (compared to 2.7%).



Southeast Asian nations were among the hardest hit on U.S. President Donald Trump’s self-declared “Liberation Day.” They’re due to be hit with tariffs of up to 49% after a 90-day temporary reduction to 10% on all countries (bar China) is lifted.



It means the region faces a difficult balancing act as the U.S. is not its only strategic partner — China also plays a crucial role for medium-term growth and development objectives for many emerging Asian economies, according to Lavanya Venkateswaran, senior ASEAN economist at the OCBC Bank.&nbsp;



Chinese President Xi Jinping visited Vietnam, Malaysia and Cambodia earlier this month in an effort to promote Beijing as a pillar of stability and boost ties within the region. He also called on the Global South “to uphold the common interests of developing countries.”



And it appears to be happening.



UN Trade and Development (UNCTAD) Secretary-General Rebeca Grynspan told CNBC’s Squawk Box this month that intra-regional trade is growing.



“One interesting indicator that we have from the last year, in this century, is that South-South trade has already been growing faster than North-North trade,” she said. “So the acceleration of South-South trade, I think, will take a new dynamism because of the new trade policy of the U.S.”



Anwar Ibrahim, Malaysian prime minister and current rotating chair of ASEAN, echoed this sentiment, calling for more trade and greater economic integration within the region in a keynote speech at the ASEAN Investment Summit in early April.



<h2 class="wp-block-heading" id="h-no-easy-solutions-nbsp"><a></a>No easy solutions&nbsp;</h2>



While there are no “easy solutions,” emerging economies are expected to try different approaches in a bid to mitigate the impact of U.S. tariffs, according to Lavanya Venkateswaran,&nbsp;an economist at OCBC.



“In the near-term, the authorities will have to tap fiscal and monetary policy tools to provide counter-cyclical support to affected sectors of the economy.&nbsp;For the medium-term, the authorities understand the need to diversify trade and investment partners,” she said.



It helps that the so-called “China+1” strategy still holds in the medium-term, she added. Many export-oriented Southeast Asia economies were big beneficiaries of the strategy during the first Trump administration, receiving economic boosts as companies shifted production away from China to their shores.&nbsp;



In Cambodia, for&nbsp;instance, according to data from the World Bank, Cambodia’s exports of goods and services made up 55.5% of its gross domestic product in 2018, before Trump imposed his first China tariffs — by 2023, this figure had risen to 66.9%.



Miguel Chanco, chief emerging Asia economist at Pantheon Macroeconomics, agreed,&nbsp;saying that these emerging markets are more attractive than China as export manufacturing hubs in the long term.



“It’s also worth bearing in mind that these tariffs do nothing to eliminate the labor cost competitiveness of EM Asia ex-China economies (versus China), which will remain a big selling point over the long term to multinationals,” he told CNBC by email. “New supply chains won’t be created overnight.”

108136098-17455036212025-04-24t134926z_586299269_rc2d4ea8bz9f_rtrmadp_0_usa-stocks

Emerging markets are betting on a post-tariffs winner — and it’s not China or the U.S.

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/250424-donald-trump-hat-ew-203p-dbe2c4-820x547.jpg" alt="" class="wp-image-613531" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/250424-donald-trump-hat-ew-203p-dbe2c4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/250424-donald-trump-hat-ew-203p-dbe2c4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/250424-donald-trump-hat-ew-203p-dbe2c4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/250424-donald-trump-hat-ew-203p-dbe2c4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/250424-donald-trump-hat-ew-203p-dbe2c4.jpg 1500w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo; via CNBC</figcaption></figure>



The online store for the Trump Organization on Thursday began selling red hats and T-shirts bearing the message “Trump 2028,” fueling fresh questions about President Donald Trump attempting to seek a third term in the White House despite a constitutional bar on doing so.



The White House, when asked about the apparel, referred CNBC to the&nbsp;Trump&nbsp;Organization. The Trump Organization did not respond to a request for comment.



White House press secretary Karoline Leavitt told NBC News, “But it’s a cool hat and I suspect it will be highly popular!” The hat costs $50, and a red shirt bearing the “Trump 2028″ logo and “Rewrite the Rules” underneath it is selling for $36.



Trump has repeatedly teased the idea that he would run for a third term as president. This would require amending the U.S. Constitution.



The 22nd Amendment to the Constitution states in part, “No person shall be elected to the office of the President more than twice.” Trump was elected in 2016 and then again in 2024.



In late March, Trump did not rule out the possibility of seeking reelection in 2028.



“A lot of people want me to do it,” Trump told NBC News then. “But, I mean, I basically tell them we have a long way to go, you know, it’s very early in the administration.”



Asked by NBC if he wanted a third term, Trump said, “I like working.”



“I’m not joking,” Trump said. “But I’m not — it is far too early to think about it.”



“There are methods which you could do it,” the president said, referring to serving another term.



“I suspect I won’t be running again, unless you say, ‘He’s so good we’ve got to figure something else out,’” Trump reportedly told Republicans during a private meeting after his November electoral victory over Democratic former Vice President Kamala Harris.



In May 2024, while speaking to members of the National Rifle Association, Trump said, ″I don’t know, are we going to be considered three-term or two-term? Are we three-term or two-term if we win?″



Former White House advisor Steve Bannon said on “Real Time with Bill Maher” on April 11 that “President Trump is going to run for a third term, and President Trump is going to be elected again.”



“On the afternoon of January 20th of 2029, he’s going to be president of the United States,” Bannon predicted.



Bannon also said, “We have a team” of people looking to enable a third term for Trump.



Rep. Andy Ogles, R-Tenn., in early January introduced a House resolution to amend the Constitution to allow Trump and any other future president to be elected to a third term.



Ogles’ resolution is tailored specifically to permit Trump to serve a third term but not to allow the three living two-term former presidents to serve a third term.



″No person shall be elected to the office of the President more than three times, nor be elected to any additional term after being elected to two consecutive terms,” the amendment states.



Unlike Trump, former Presidents Bill Clinton, George W. Bush and Barack Obama all served two consecutive terms. Former President Joe Biden served one term.

250424-donald-trump-hat-ew-203p-dbe2c4

Trump Organization sells ‘Trump 2028’ hat and shirt, fueling questions about third term bid

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108136511-1745552401952-gettyimages-2211163539-AFP_43ER464-1-820x547.jpeg" alt="" class="wp-image-613528" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108136511-1745552401952-gettyimages-2211163539-AFP_43ER464-1-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108136511-1745552401952-gettyimages-2211163539-AFP_43ER464-1-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108136511-1745552401952-gettyimages-2211163539-AFP_43ER464-1-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108136511-1745552401952-gettyimages-2211163539-AFP_43ER464-1-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108136511-1745552401952-gettyimages-2211163539-AFP_43ER464-1-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108136511-1745552401952-gettyimages-2211163539-AFP_43ER464-1-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">US President Donald Trump steps off Marine One upon arrival at the Leesburg Executive Airport Landing Zone in Leesburg, Virginia, on April 24, 2025. Alex Wroblewski | Afp | Getty Images</figcaption></figure>



BEIJING — U.S. President Donald Trump on Thursday refuted China’s claims that there were no ongoing trade discussions between Beijing and Washington.



“They had a meeting this morning &#8230; It doesn’t matter who ‘they’ is. We may reveal it later, but they had meetings this morning, and we’ve been meeting with China,” Trump told reporters.



The statement followed China’s denial of any talks with the U.S. and calls for abolishing “unilateral” tariff measures for resolving trade issues.



“At present there are absolutely no negotiations on the economy and trade between China and the U.S.,” Ministry of Commerce spokesperson He Yadong told reporters in Mandarin, translated by CNBC. He added that “all sayings” regarding progress on bilateral talks should be dismissed.



“If the U.S. really wants to resolve the problem &#8230; it should cancel all the unilateral measures on China,” He said.



Trump and Treasury Secretary Scott Bessent this week indicated that there could be an easing in tensions with China. The White House earlier this month added 145% tariffs on Chinese goods, to which Beijing responded with duties of its own and increased restrictions on critical minerals exports to the U.S.



The Commerce Ministry’s comments echoed those of Chinese Foreign Ministry spokesperson Guo Jiakun, who said on Thursday afternoon that there were no ongoing talks, according to state media.



Both spokespersons held to the official line that China would be willing to talk to the U.S. subject to Beijing being treated as an equal.



“China definitely wants to see the trade war deescalate, as it hurts both economies,”&nbsp;said Yue Su, principal economist, China, at The Economist Intelligence Unit. “However, due to the inconsistency of Trump’s policies and the lack of clarity around what he actually wants, China’s strategy has shifted from focusing on ‘what you need’ to ‘what I need.’ Their request for the U.S. to cancel ‘unilateral’ tariffs reflects that shift.”



China earlier this week threatened countermeasures against countries that might make deals with the U.S. at the expense of Beijing’s interests.



“We also need to recognize that this is a ‘whatever it takes’ moment for China in terms of U.S.-China relations,” Su said. “I&nbsp;wouldn’t be surprised if China adopts a more hawkish stance if the U.S. continues to escalate tensions.”



Several Wall Street banks have cut their China gross domestic product outlook in the last few weeks in light of the tariffs and escalating tensions with the U.S.



The Commerce Ministry on Thursday&nbsp;emphasized government and business efforts to help companies sell goods meant for exports to the Chinese market instead.



“From China’s perspective, any meaningful negotiations will likely require the US to reduce tariffs to the previous 20% or even lower level,” said Jianwei Xu, senior economist for Greater China, at Natixis.



“But for the Trump administration, however, reducing tariffs too far could raise uncomfortable questions: What was the point of the confrontation if we end up back where we started?”



The U.S. is China’s largest trading partner on a single-country basis. But in the last several years, Southeast Asia has surpassed the European Union to become China’s largest trading partner on a regional basis.



Correction. Yue Su is principal economist, China, at The Economist Intelligence Unit. An earlier version misstated the name of the organization.

108136511-1745552401952-gettyimages-2211163539-AFP_43ER464 (1)

Trump asserts trade talks with China are underway after Beijing denies any ongoing negotiations

How Ripple is building the connective tissue between banks and the blockchain

Ripple president on stablecoins

Ripple president on stablecoins, Trump and tokenization

How Salt Lake City transformed into one of the hottest housing and job markets in the U.S.

Why You Are Getting So Many Fake Job Offers By Text

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="768" height="402" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/AA1DsPom.jpg" alt="" class="wp-image-612780" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/AA1DsPom.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/AA1DsPom-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/AA1DsPom-160x84.jpg 160w" sizes="auto, (max-width: 768px) 100vw, 768px" /><figcaption class="wp-element-caption">Selim Korkutata | Anadolu Agency | Getty Images</figcaption></figure>



Bitcoin rose for a third day in a broad relief rally after President Donald Trump softened his tone on China tariffs and ratcheted down his rhetoric against Federal Reserve Chair Jerome Powell.



The price of the flagship cryptocurrency was last higher by 2.4% at $93,660, according to Coin Metrics. Earlier, it rose as high as $94,499.86, its highest level since March 3. Bitcoin has now given back more than half of its losses since Inauguration Day and is hovering just under the flat line for the year.



“This recent surge primarily reflects a market seizing the opportunity to capitalize on a dip in an asset that consistently proves its value as a compelling option for portfolio diversification and hedge against macroeconomic uncertainty and U.S. dollar volatility,” Joel Kruger, market strategist at LMAX, told CNBC.



On Tuesday, exchange-traded funds tracking the price of bitcoin saw a spike in inflows as interest in the cryptocurrency’s potential as a hedge strengthened amid continued stock market turbulence and a diving dollar. Bitcoin ETFs logged $936.43 million in daily inflows, their biggest day since Jan. 17, according to data from SoSoValue.



Bitcoin’s rally this week has forced short sellers to buy bitcoin back from the market to close their positions, thereby pushing the price even higher. In the past 24 hours, bitcoin has seen more than $300 million in short liquidations across exchanges, according to CoinGlass.



Demand for spot bitcoin has been contracting on a monthly basis, although that contraction has slowed in recent days, taking downward pressure off the price, Julio Moreno, head of research at crypto data provider CryptoQuant, told CNBC. However, he warned, the demand growth indicators have a ways to go before getting to late 2024 levels, which is what bitcoin would need to sustain its rally and see new all-time highs.

AA1DsPom

Bitcoin heads toward $95,000, rising for a third day and turning positive on the year

How Takeda’s CEO transformed the company into a global pharma powerhouse

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108134615-1745320819888-gettyimages-2209959602-UK_INFLATION-820x461.jpeg" alt="" class="wp-image-612440" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108134615-1745320819888-gettyimages-2209959602-UK_INFLATION-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108134615-1745320819888-gettyimages-2209959602-UK_INFLATION-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108134615-1745320819888-gettyimages-2209959602-UK_INFLATION-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108134615-1745320819888-gettyimages-2209959602-UK_INFLATION-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108134615-1745320819888-gettyimages-2209959602-UK_INFLATION-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108134615-1745320819888-gettyimages-2209959602-UK_INFLATION.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Shoppers pass along the high street in Maidstone, UK, on Wednesday, April 16, 2025. Bloomberg | Bloomberg | Getty Images</figcaption></figure>



The International Monetary Fund downgraded the U.K.’s 2025 growth forecast in its latest economic outlook released on Tuesday, warning that U.S. President Donald Trump’s trade tariffs, higher borrowing costs and increased energy prices will dent output this year.



In its reference forecast, the IMF predicted the British economy will grow 1.1%, down by 0.5 percentage points from its previous forecast issued in January. The fund now also expects the U.K. to grow by 1.4% in 2026, 0.1 percentage points lower than its previous estimate.



The figures were part of the IMF’s reference outlook, which does not include the tariff announcements made after April 4,&nbsp;such as the 90-day pause on the higher duties that Trump initially announced.



The downgrade for 2025 “reflects a smaller carryover from 2024, the impact of recent tariff announcements, an increase in gilt yields, and weaker private consumption amid higher inflation as a result of regulated prices and energy costs,” the IMF wrote in its World Economic Outlook report.



The downgrade pours more cold water on the U.K.’s Labour government which has made a main priority of growing the economy and is already contending with the uncertainty posed by trade tariffs from one of its largest trading partners, the U.S.



Trump announced a baseline 10% tariff on U.K. imports to the U.S. on April 2, despite Britain and the U.S. having almost balanced trade when it comes to the exchange of goods.



While the U.K. is hopeful it can strike a trade deal with the U.S., the White House leader’s mercurial stance on trade and tariffs has put financial institutions on edge.



The latest IMF downgrade for Britain echoes a similar downturn in domestic forecasts. In February, the Bank of England halved the U.K.’s growth projection for 2025 from 1.5% to 0.75%, warning of an uncertain global economic outlook and a sharp uptick in inflation later this year on the back of higher energy and water bills.



The U.K.’s Office for Budget Responsibility in March also halved its growth forecast for the U.K., slashing its outlook from 2% to 1% growth in 2025.



Despite the recent downgrades, the U.K. economy has shown some signs of life recently. The latest monthly growth data released earlier in April showed the economy grew by a larger-than-expected 0.5% month-on-month in February, from zero growth in January. National inflation, meanwhile, cooled to a lower-than-expected 2.6% in March.



The Bank of England appears sanguine on interest rate cuts as it looks to balance boosting growth with its predicted uptick in the inflation rate. Economists widely expect the BOE to cut its key interest rate from 4.5% to 4.25% at its next monetary policy meeting in May.



<h2 class="wp-block-heading" id="h-bright-spots-in-the-euro-zone"><a></a>Bright spots in the euro zone</h2>



Looking at the U.K.’s continental neighbors in the euro zone, the IMF predicted a slight decline in 2025 output, forecasting that growth in the euro area’s GDP will hit 0.8% in 2025, before picking up modestly to 1.2% in 2026.



“Rising uncertainty and tariffs are key drivers of the subdued growth in 2025,” the fund said. It noted that offsetting forces that support the modest uptick in 2026 include stronger consumption on the back of rising real wages, along with a projected fiscal easing in Germany following major changes to its fiscal rule, known as the “debt brake.”



<figure class="wp-block-image"><img decoding="async" src="https://image.cnbcfm.com/api/v1/image/108086018-1736840423739-gettyimages-1090698142-amf06159.jpeg?v=1736840447&amp;w=1858&amp;h=1045&amp;vtcrop=y" alt="Spain, holiday homes, tax"/><figcaption class="wp-element-caption">Spain, holiday homes, tax Westend61 | Westend61 | Getty Images</figcaption></figure>



The IMF singled out Spain as a bright spot in the euro zone, stating its growth momentum “contrasts with the sluggish dynamics elsewhere,” with the Mediterranean nation expected to expand its economy by 2.5% this year following an upward revision of 0.2 percentage points from the forecast made in January.



“This reflects a large carryover from better-than-expected outturns in 2024 and reconstruction activity following floods,” the IMF said.



Trump’s tariffs cast a shadow over the wider EU, however. The U.S. president initially imposed a 20% “reciprocal” tariff on all goods coming from the European Union but paused the measures for 90 days until early July, lowering the duty to 10% until that time.



As it looks to sign its own trade deal with the States in the interim, the EU paused its retaliatory duty targeting 21 billion euros ($24.1 billion) worth of U.S. goods “to allow time and space for EU-U.S. negotiations,” the European Commission said.

108134615-1745320819888-gettyimages-2209959602-UK_INFLATION

IMF slashes UK’s growth forecast, points to U.S. tariffs and borrowing costs

Why Public Schools Are Going Broke In The U.S.

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108133583-17449153292025-04-17t183309z_182229855_rc2uzdaji827_rtrmadp_0_usa-italy-820x461.jpeg" alt="" class="wp-image-612340" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108133583-17449153292025-04-17t183309z_182229855_rc2uzdaji827_rtrmadp_0_usa-italy-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108133583-17449153292025-04-17t183309z_182229855_rc2uzdaji827_rtrmadp_0_usa-italy-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108133583-17449153292025-04-17t183309z_182229855_rc2uzdaji827_rtrmadp_0_usa-italy-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108133583-17449153292025-04-17t183309z_182229855_rc2uzdaji827_rtrmadp_0_usa-italy-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108133583-17449153292025-04-17t183309z_182229855_rc2uzdaji827_rtrmadp_0_usa-italy-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108133583-17449153292025-04-17t183309z_182229855_rc2uzdaji827_rtrmadp_0_usa-italy.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">U.S. President Donald Trump speaks as he meets with Italian Prime Minister Giorgia Meloni (not pictured) in the Oval Office at the White House in Washington, D.C., U.S., April 17, 2025. Evelyn Hockstein | Reuters</figcaption></figure>



Yesterday’s edition of this newsletter cautioned that U.S. President Donald Trump’s desire to intervene in the Federal Reserve, as he expressed to reporters on Friday, could result in upheaval in the markets. That didn’t happen because markets were closed for the Good Friday holiday.



On Monday, trading resumed. So have Trump’s attacks on the central bank — and, more pointedly, on Fed Chair Powell, describing him as “Mr. Too Late” and “a major loser” for not cutting interest rates. Trump appointed Powell to the Federal Reserve’s highest seat in his first presidential term during 2017.



With no market closure to shield shares from Trump’s threats, investors unloaded their stocks. All major U.S. indexes fell, weighed down by steep declines in the “Magnificent Seven” group of shares. The U.S. dollar weakened to a three-year low while gold prices hit a new high, suggesting, in combination, that global investors are losing confidence in the U.S. economy and reallocating their capital to safer assets shielded from Trump.



<h2 class="wp-block-heading" id="h-what-you-need-to-know-today"><a></a>What you need to know today</h2>



Trump escalates attacks on Powell U.S. President Donald Trump on Monday renewed and escalated his attacks on Federal Reserve Chair Jerome Powell. ″‘Preemptive Cuts’ in Interest Rates are being called for by many,” Trump said on Truth Social. “There can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW,” Trump wrote, referring to Powell. On Friday, Trump also called for Powell to cut rates.



Stocks and U.S. dollar fall as gold hits high Stocks in the U.S. fell Monday. The S&amp;P 500 lost 2.36%, the Dow Jones Industrial Average tumbled 2.48% and the Nasdaq Composite was down 2.55%. The ICE U.S. Dollar Index fell as low as 97.92 on Monday, the lowest level since March 2022, according to FactSet. Gold prices jumped to $3,452.30 per ounce, a fresh record. Asia-Pacific markets traded mixed Tuesday. Hong Kong’s Hang Seng Index climbed nearly 0.5% but Japan’s Nikkei 225 declined roughly 0.2%. The Bank of Japan will likely pause rate hikes in its May meeting, said Moody’s Analytics.



Shares of Tesla drop before earnings Tesla shares fell almost 6% on Monday, a day ahead of its first-quarter earnings report. The stock is now down 44% for the year after wrapping up their worst quarter since 2022 in March. In the online forum that Tesla solicits investor inquiries before its earnings calls, one investor, referring to CEO Elon Musk, asked, “What steps has the board of directors taken to mitigate the brand damage caused by Elon’s political activities?”



Vance and Modi optimistic on deal India’s Prime Minister Narendra Modi met U.S. Vice President JD Vance, who was in India for a mostly personal trip, in the nation’s capital on Monday. A statement from Modi’s office said the two leaders “welcomed the significant progress in the negotiations for a mutually beneficial India-U.S. Bilateral Trade Agreement.” On Monday, U.S. Trade Representative Jamieson Greer said both countries have “finalized the terms of reference to lay down a roadmap for the negotiations on reciprocal trade.”



Nomura to buy parts of Macquarie Japanese investment bank and brokerage group Nomura said Tuesday it will buy the U.S. and European public asset management businesses of Macquarie, an Australian investment banking company, for $1.8 billion. The all-cash deal is expected to close by the end of this year, subject to regulatory approvals.



[PRO] Markets could have ‘severe’ reaction to Trump Stocks and bonds would likely have a “severe reaction” and sell off sharply if Trump makes a move to get rid of Federal Reserve Chair Jerome Powell, Evercore ISI’s vice chairman, Krishna Guha, told CNBC’s “Squawk Box” Monday. While Powell has said he doesn’t believe the president can legally remove the Fed Chair, Guha highlighted one way that Trump can pressure Powell without firing him.



<h2 class="wp-block-heading" id="h-and-finally"><a></a>And finally&#8230;</h2>



<figure class="wp-block-image"><img decoding="async" src="https://image.cnbcfm.com/api/v1/image/108131827-1744683718571-gettyimages-2203962201-baglietto-notitle250310_np76O.jpeg?v=1745301518&amp;w=1858&amp;h=1045&amp;vtcrop=y" alt="U.S. one hundred dollar bills."/><figcaption class="wp-element-caption">Nurphoto | Nurphoto | Getty Images</figcaption></figure>



As the dollar falters, the world’s central banks tread a tightrope — devalue their currency or not



Uncertainty about U.S. policymaking has led to a flight from the greenback and Treasurys in recent weeks, with the dollar index weakening more than 9% so far this year. The drop in the U.S. dollar has led other currencies to appreciate against it, especially safe havens such as the Japanese yen, the Swiss franc and the euro.



While a stronger local currency might help tame inflation through cheaper imports, it complicates export competitiveness particularly under renewed U.S. tariffs, said Thomas Rupf, VP Bank’s co-head for Singapore and Asia chief investment officer.



Currency devaluation is likely to be more of an active consideration across emerging markets, particularly in Asia, said Nick Rees, head of macro research at Monex Europe. However, those countries and Asian central banks will need to tread a fine line to avoid capital flight and other risks.

108133583-17449153292025-04-17t183309z_182229855_rc2uzdaji827_rtrmadp_0_usa-italy

Investors grow wary of U.S. assets as Trump intensifies attacks on Powell

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="768" height="402" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/AA1Dm0ee.jpg" alt="" class="wp-image-612268" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/AA1Dm0ee.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/AA1Dm0ee-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/AA1Dm0ee-160x84.jpg 160w" sizes="auto, (max-width: 768px) 100vw, 768px" /><figcaption class="wp-element-caption">Nurphoto | Nurphoto | Getty Images</figcaption></figure>



The dollar has been sliding and the ripple effect on other currencies has brought a mix of relief and headache to central banks around the world.



Uncertainty about U.S. policymaking has led to a flight out of the U.S. dollar and Treasurys in recent weeks, with the dollar index weakening more than 9% so far this year. Market watchers see further declines.&nbsp;



According to Bank of America’s most recent Global Fund Manager Survey, a net 61% of participants anticipate a decline in the dollar’s value over the next 12 months — the most pessimistic outlook of major investors in almost 20 years.



The exodus from U.S. assets may reflect a broader crisis of confidence, with potential spillovers such as higher imported inflation as the dollar weakens.



The drop in the greenback has led other currencies to appreciate against it, especially safe havens such as the Japanese yen, the Swiss franc as well as the euro.



Since the start of the year, the Japanese yen has strengthened over 10% against the greenback, while the Swiss franc and the euro has appreciated about 11%, according to LSEG data.



Aside from the safe havens, other currencies that have strengthened against the dollar this year include the Mexican peso, up 5.5% against the dollar, and the Canadian dollar which has appreciated over 4%. The Polish zloty has strengthened more than 9% while and Russian rouble has appreciated over 22% against the greenback.



Some emerging market currencies, however, have depreciated despite the weakness in the greenback.



The Vietnamese dong and Indonesian rupiah weakened to a record low per U.S. dollar earlier this month. The Turkish lira also hit an all-time low last week. China’s yuan hit a record low against the dollar nearly two weeks back but has since strengthened.&nbsp;



<h2 class="wp-block-heading" id="h-breathing-room-to-cut-rates"><a></a>Breathing room to cut rates?</h2>



Barring a few exceptions like the Swiss National Bank, a weakening U.S. dollar is a relief to governments and central banks around the world, analysts told CNBC.



“Most central banks would be happy to see 10%-20% declines in the U.S. dollar,” said Adam Button, chief currency analyst at ForexLive. He added that the dollar strength has been a persistent problem for years and poses a difficulty for countries with hard and soft dollar pegs.



With many emerging market countries having large dollar-denominated debt, a weaker dollar lowers real debt burden. Additionally, a softer greenback and stronger local currency tend to make imports relatively cheaper, lowering inflation and hence allowing central banks the room to cut rates to boost growth.



The recent U.S. dollar sell-off offers more “breathing room” for central banks to cut rates, said Button.&nbsp;



While a stronger local currency might help tame inflation via cheaper imports, it complicates export competitiveness particularly under renewed U.S. tariffs where Asia is exposed as the world’s largest goods producer, said Thomas Rupf, VP Bank’s co-head for Singapore and Asia chief investment officer.



Currency devaluation is likely to be more of an active consideration across emerging markets, particularly in Asia, said Nick Rees, head of macro research at Monex Europe.



However, these emerging markets and Asian central banks will need to tread a fine line, to avoid capital flight and other risks.



“Emerging markets face high inflation, debt, and capital flight risks, making devaluation dangerous,” said Wael Makarem, financial markets strategists lead at Exness.



Additionally, devaluation could be seen by the U.S. administration as a trade measure which could attract retaliation, he added.



Emerging market economies may be reluctant to cut rates as it can affect the debt burden of domestic households and firms that have borrowed in U.S. dollars, said Fitch Ratings’ director of economics, Alex Muscatelli. A weaker domestic currency can also lead to capital outflows in response to lower interest differentials with the U.S., he added.



For example, Muscatelli does not see Indonesia’s central bank cutting rates too much given the recent currency volatility, but cited that Korea and India may have space for cutting rates.



The European Central Bank took the opportunity offered by declining inflation to cut rates by another 25 basis point at its April meeting. The ECB on Thursday said that “Most measures of underlying inflation suggest that inflation will settle at around the Governing Council’s 2% medium-term target on a sustained basis.”



Another example is the Swiss National Bank, which has grappled with a strong franc for much of the past 15 years, observed Button. Exports of goods and services make up over 75% of Switzerland’s GDP and a strong franc makes Swiss goods more expensive abroad.



“If capital continues to flow in, they may have to take drastic measures to devalue,” he said. Investors flood into the franc during times of uncertainties, such as in recent weeks, strengthening the franc.



<h2 class="wp-block-heading"><a></a>Central banks are avoiding devaluation — for now</h2>



Devaluing the currency poses the risk of stoking price growth and monetary authorities will be wary of inflation staying above their targets.



The risk of higher inflation arising from currency depreciation as well as tariffs — as countries respond to U.S. levies — are likely to make central banks reluctant to pursue a path of voluntary devaluation, said Wells Fargo’s international economist and FX strategist, Brendan McKenna.



On top of that, while most foreign central banks do theoretically have the bandwidth to weaken their own currency, the likelihood is still low in the current environment, the strategist added.



Whether a country can devalue its currency is influenced by several factors: the size of its FX reserves, exposure to foreign debt, its trade balance, and sensitivity to imported inflation.&nbsp;



“Export-oriented countries with sufficient reserves and lower reliance on foreign debt would have more room to devalue – but even those are likely to tread carefully,” said McKenna.&nbsp;



The broader direction of trade negotiations will be key to how countries choose to act. Aside from China, several countries have displayed a willingness to engage in trade negotiations, and if these talks lead to lower tariffs, then central banks will not be as likely to pursue weaker currencies, he added.



In the current geopolitical climate, devaluation could also invite retaliation and risks of accusations of currency manipulation, said VP Bank’s Rupf.



Though there is still the possibility that trade tensions could lead to more protectionist outcomes, which will drive central banks toward devaluing their currencies.



“But for now, it seems the preferred action is avoiding a currency war that would only add more instability to the local and global economy,” McKenna said.

AA1Dm0ee

As the dollar falters, the world’s central banks tread a tightrope — devalue their currency or not

Why the U.S. has a shortage of air traffic controllers

Crypto’s future is built on principles

Crypto’s future is built on principles, not price, says Cardano founder.

CNBC

Google And Meta Are Scrambling To Copy TikTok. Can They Catch up?

Emerging markets are betting on a post-tariffs winner — and it’s not China or the U.S.

Trump Organization sells ‘Trump 2028’ hat and shirt, fueling questions about third term bid

Trump asserts trade talks with China are underway after Beijing denies any ongoing negotiations

How Ripple is building the connective tissue between banks and the blockchain

Ripple president on stablecoins, Trump and tokenization

How Salt Lake City transformed into one of the hottest housing and job markets in the U.S.

Why You Are Getting So Many Fake Job Offers By Text

Bitcoin heads toward $95,000, rising for a third day and turning positive on the year

How Takeda’s CEO transformed the company into a global pharma powerhouse

IMF slashes UK’s growth forecast, points to U.S. tariffs and borrowing costs

Why Public Schools Are Going Broke In The U.S.

Investors grow wary of U.S. assets as Trump intensifies attacks on Powell

As the dollar falters, the world’s central banks tread a tightrope — devalue their currency or not

Why the U.S. has a shortage of air traffic controllers

Crypto’s future is built on principles, not price, says Cardano founder.

Why Bath And Body Works Is One Step Ahead Of Trump’s Tariffs

News Tips

Advertise With Us

CNBC

Google And Meta Are Scrambling To Copy TikTok. Can They Catch up?

Emerging markets are betting on a post-tariffs winner — and it’s not China or the U.S.

Trump Organization sells ‘Trump 2028’ hat and shirt, fueling questions about third term bid

Trump asserts trade talks with China are underway after Beijing denies any ongoing negotiations

How Ripple is building the connective tissue between banks and the blockchain

Ripple president on stablecoins, Trump and tokenization

How Salt Lake City transformed into one of the hottest housing and job markets in the U.S.

Why You Are Getting So Many Fake Job Offers By Text

Bitcoin heads toward $95,000, rising for a third day and turning positive on the year

How Takeda’s CEO transformed the company into a global pharma powerhouse

IMF slashes UK’s growth forecast, points to U.S. tariffs and borrowing costs

Why Public Schools Are Going Broke In The U.S.

Investors grow wary of U.S. assets as Trump intensifies attacks on Powell

As the dollar falters, the world’s central banks tread a tightrope — devalue their currency or not

Why the U.S. has a shortage of air traffic controllers

Crypto’s future is built on principles, not price, says Cardano founder.

Why Bath And Body Works Is One Step Ahead Of Trump’s Tariffs

News Tips

Advertise With Us

Newsletters