Global Economic Tensions Escalate Amid Tariff Concerns and Geopolitical Shifts

Australian Treasurer Jim Chalmers has voiced significant concerns over US tariffs, characterizing them as an "act of economic self-harm" and highlighting that global demand and uncertainty are more pressing issues for the world economy. Chalmers stated that the unpredictable nature of US tariffs is weighing on employers and contributing to global uncertainty, which is impacting local decisions on hiring. He emphasized that Australia would approach these tariffs with resilience, not retaliation, and that there is "zero chance" of the Pharmaceutical Benefits Scheme (PBS) being part of US trade negotiations.

China's Foreign Ministry has responded to reports of an exit ban on a Wells Fargo (WFC) banker, stating that China upholds the rule of law for everyone, both Chinese and foreign, and welcomes foreign companies to invest in the Chinese market. While initially stating they were "not familiar with the matter," the ministry later affirmed that China would provide a "market-friendly environment" to foreign companies. This comes as the ministry also asserted that China will protect the rights of its own companies.

New tensions are emerging between the European Union and China, with the EU reportedly planning to sanction two small Chinese banks for allegedly circumventing sanctions against Russia. These proposed measures, which would ban EU-based financial institutions from transactions with the unnamed regional lenders near China's border with Russia, are part of the EU's 18th sanctions package. This development adds to existing geopolitical friction ahead of the upcoming EU-China summit, where China's support for Russia's war efforts in Ukraine is a key concern for the EU.

Shares of GSK (GSK) fell by 6.4% after a US Food and Drug Administration (FDA) advisory panel rejected support for its multiple myeloma drug, Blenrep. The FDA's Oncologic Drugs Advisory Committee voted against the drug's benefit-risk profile for proposed combination regimens, primarily due to ongoing concerns about eye-related side effects and dosing. This decision marks a significant setback for GSK's efforts to reintroduce Blenrep to the US market, with the FDA's final decision expected by July 23.