Key Takeaways
- Bank of America (BAC) CEO Brian Moynihan indicated that the bank's economists do not anticipate a U.S. recession and project economic growth of 1-1.5% this year, while also noting that Federal Reserve rate cuts are not expected soon as inflation slowly moderates.
- Japan's Kioxia is reportedly poised to discontinue partnerships with suppliers that exhibit inadequate cybersecurity measures, underscoring a growing emphasis on robust supply chain security.
- U.S. crude oil prices closed at $65.16 per barrel, experiencing a 1.70% decrease.
- White House Trade Adviser Peter Navarro asserted that U.S. copper tariffs are advantageous for domestic companies such as Revere Copper, simultaneously pointing out the nation's insufficient refining capacity and strategic vulnerabilities stemming from China's dominance in rare earth elements.
- Mexico's Economy Minister is scheduled to engage in discussions with Canada's Finance Minister regarding the management of U.S. tariffs, as both countries navigate complex trade relations with the United States.
Bank of America (BAC) CEO Brian Moynihan provided an optimistic outlook on the U.S. economy, stating that the bank's economists do not foresee a recession. He projected a moderate economic growth rate of 1-1.5% for the year. Moynihan also conveyed that economists do not expect the Federal Reserve to implement rate cuts in the near term, attributing this to the slow pace of inflation easing. He noted that consumers continue to spend, albeit with a shift towards services, which should help the economy hold up.
In corporate news, Japanese chipmaker Kioxia is reportedly taking a firm stance on supply chain security. The company plans to cease working with suppliers that have weak cybersecurity protocols. This move highlights a rising industry-wide concern over digital vulnerabilities within global supply chains.
Meanwhile, the energy market saw U.S. crude oil prices settle at $65.16 per barrel, marking a 1.70% decline. This movement reflects the dynamic nature of global commodity markets.
On the trade front, White House Trade Adviser Peter Navarro commented on the impact of U.S. tariffs, specifically on copper. He stated that these tariffs are beneficial for domestic firms like Revere Copper. Navarro also drew attention to the United States' lack of sufficient copper refining capacity and the strategic vulnerabilities posed by China's significant influence over rare earth elements, which are critical minerals.
In North American trade relations, Mexico's Economy Minister is set to hold discussions with Canada's Finance Minister concerning the ongoing U.S. tariffs. This meeting underscores the collaborative efforts between Mexico and Canada to address and manage the implications of U.S. trade policies.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.