WS #14780
The US Ambassador to China reports that Trump and Xi have developed a relationship of 'somewhat trust' following a candid conversation. This diplomatic thaw reduces the immediate risk of broader trade escalation, which is positive for global supply chains and consumer discretionary. However, the US remains firm on preventing Chinese aid to Iran, keeping the geopolitical risk premium alive. Costco confirmed receipt of $184 million in tariff refunds, a direct positive cash flow event. However, analyst sentiment is mixed, with Mizuho and Bernstein lowering price targets despite maintaining Outperform ratings, reflecting caution on consumer spending. This development is a specific positive offset to broader tariff fears.
US China Thaw
The US Ambassador to China reports that Trump and Xi have developed a relationship of 'somewhat trust' following a candid conversation. This diplomatic thaw reduces the immediate risk of broader trade escalation, which is positive for global supply chains and consumer discretionary. However, the US remains firm on preventing Chinese aid to Iran, keeping the geopolitical risk premium alive.
Costco confirmed receipt of $184 million in tariff refunds, a direct positive cash flow event. However, analyst sentiment is mixed, with Mizuho and Bernstein lowering price targets despite maintaining Outperform ratings, reflecting caution on consumer spending. This development is a specific positive offset to broader tariff fears.