Market Rundown: Trump's Fed Nominee, Gold Tariffs, and Intel Controversy

Federal Reserve Nominee

• 🎯 President Trump has nominated Stephen Miran, Chairman of the Council of Economic Advisers, for an open seat on the Federal Reserve's board.
• 🔑 Miran has previously advocated for increased presidential control over the Federal Reserve, including shorter board member terms.
• ⚠️ His nomination requires Senate confirmation and he would serve only until the end of January.

Gold Market Impacted by Tariffs

• 📈 The price of gold has increased by 27% this year as investors seek safe-haven assets.
• ⚖️ US buyers typically import gold in 1 kilo bars, primarily from Switzerland, which exported $61.5 billion worth to the US in the year to June.
• 🚫 A potential 39% duty on all Swiss exports to the US could significantly impact gold markets, despite initial expectations of an exemption.
• 🤝 The Swiss president's recent visit to Washington did not result in a deal to negotiate down the tariff.

Intel Faces Presidential Scrutiny

• 🗣️ President Trump has called for Intel's CEO to resign, citing conflicts of interest due to ties with China.
• 💰 Reuters reported that Intel had invested at least $200 million in Chinese manufacturing and chip firms, some linked to the military.
• 🏦 Intel received $8 billion in federal subsidies for US semiconductor manufacturing, making it susceptible to presidential influence.
• 📉 Intel's stock lost 3% on Thursday following these developments.

Automotive Industry and Tariffs

• 🚗 Honda and Toyota collectively estimate that tariffs will cost them approximately $13 billion this year.
• 📊 Japanese carmakers have reported mixed financial results, with Toyota slashing profit forecasts while Honda found tariffs less severe than anticipated.
• 🇯🇵 Japanese stocks rose after the government announced that the US would refine its tariff application to avoid double taxation on certain Japanese products.