Cars and Copper – next for the Trump Treatment
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Will upcoming auto and copper tariffs trigger market volatility?
Are you ready for new tariffs? This time it's copper and cars. Well, that's the rumour, anyway. It sent copper prices to new highs. US equities are a little concerned about tariffs anyway. The Magnificent 7 had another hit. Austin Gulsby is worried about inflation expectations becoming unanchored and said the Fed is no longer on the golden path to reducing inflation. The UK Chancellor came out with her own chainsaw, well, more a pair of garden shears. Perhaps an introduced swinging cuts at the Australian Labour Force data today just for February. That gives us a bit more detail than the February numbers we've already got, so we'll find out how useful that's gonna be. It's Thursday, it's the 27th of March 2025.
It's the morning call from NAB. Good morning. Well the US dollar is back up again today. It's gaining 0.4% on the DXY. The Aussie dollar is down a quarter percent to 62.9 US cents. The Euro has lost a third of one percent, the Japanese yen is not point four percent down. Same for the pound in the UK, not at all a good day on the US stock market, with the Nasdaq down two percent, the SP losing one point one percent, and a third of one percent drop in the Dow, the Russell two thousand also down one per cent, all of those in the US close, whereas in Europe, well a nort point three percent rise in the FTSE, uh, but the Euro stocks fifty is down one point two percent, so is that The DAX and ten year treasuries are four basis points higher this morning at four point three five percent.
UK GILT down two basis points to four point seven three percent.
What effect are higher US Treasury yields and oil prices having on equity markets?
And Australian ten year yields, well they were up five basis points yesterday to four point four seven, up another few basis points on futures since then. And oil is higher, up one point one percent for WTI, one point two percent for Brent. Brent is now heading closer to seventy four a barrel and It's Ray Attrell from Nab in Sydney who joins us today. So a large part of this drive down in US equities today uh has been on the big falls we've seen in the Magnificent Seven. So we've seen Tesla falling more than five percent in this session, Nvidia down well over six percent as well. So what do you make of that? I mean, is it tariff anxiety? It looks like it, and for good reason. Yeah. Good morning,
Phil. It would be nice to do a tariff free episode. Maybe we can do what three or four years three or four years' time. Um yes, I mean catching up on the news overnight, it looks to me like the news that um President Trump may be announcing uh tariffs on the auto sector as early as a couple of hours time, so four PM Washington time, which is eight uh AM uh Australian Eastern Time. Uh we may get uh hard news on auto tariffs. I remember, you know, wine back a few days and the view that was uh or that the messaging that was coming out of Washington was that sector specific tariffs uh might not come as early as the April second. And Liberation Day announcements. But that seems to have undertaken a bit of a backflip.
And obviously yesterday we also had news that tariffs on copper imports may come a lot sooner than expected.
Are durable‑goods orders spiking as companies rush before new tariffs take effect?
Yeah. If you recall that when the uh a a study was ordered into the national security implications of copper imports, uh the deadline for uh reporting back on that was actually November the twenty-second, which is why a lot of this will explain. Kink, if you like, in the copper futures curve was in that sort of um yeah, pre-December and and post-December effectively. But what the impact of that has done is copper's hit a new high today. Absolutely. So that's the direct result, I think, of that. So uh yes, so you know tariff news obviously front and centre, and it seems to have taken uh a bite out of the sort of nascent equity rally that we've had in the last couple of days, and uh it's breathed a little bit of life back.
back into the dollar I think on or the US dollar.
And I guess also, I mean so durable goods orders, we saw those rise as well. I guess that's tariff related as well, because it was you know, people trying to get the orders in before foreign uh steel and aluminium tariffs kicked in.
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Chapters
8 chapters
1
Will upcoming auto and copper tariffs trigger market volatility?
0:01–1:25
2
What effect are higher US Treasury yields and oil prices having on equity markets?
1:25–2:51
3
Are durable‑goods orders spiking as companies rush before new tariffs take effect?
2:51–4:28
4
Is the Fed shifting its stance on inflation as tariff‑related price pressures rise?
4:28–6:40
5
Will the RBA cut rates soon after February CPI meets expectations?
6:40–8:14
6
How will the UK’s latest CPI and Spring Statement influence BoE policy expectations?
8:14–9:59
7
What do the latest US Q4 GDP and jobless‑claims data suggest ahead of Trump’s auto‑tariff announcement?
9:59–12:11
8
What are the key takeaways from today’s market call and what should listeners watch tomorrow?
12:11–13:32