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President Trump has unveiled a series of aggressive tariff policies targeting various sectors and countries, as reported by Yahoo Finance. He plans to introduce escalating tariffs on pharmaceutical imports, starting small but reaching up to 250% within a year and a half, to boost domestic production, alongside upcoming semiconductor tariffs. Trump also threatened the EU with 35% tariffs if a $600 billion investment pledge isn’t met, though a 15% flat rate on EU goods was agreed upon. Additionally, a 50% tariff on $15 billion worth of copper imports has rattled global markets, with further expansions planned. Country-specific duties include 35% on Canada, 50% on Brazil (with exemptions), and 25% on India, with potential increases due to its Russian oil purchases. Trade deals with Mexico and South Korea offer temporary reprieves or balanced terms. India has criticized the US stance as a double standard, vowing to protect its interests. These moves, alongside ending exemptions on low-value imports, signal a broad protectionist push, raising concerns about inflation and global trade turbulence as Trump’s self-imposed deadlines approach.
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President Trump signed an executive order to enable 401(k) investors to diversify into private assets, including private equity, venture capital, hedge funds, real estate, and possibly gold and crypto. This directive tasks the Department of Labor and SEC with creating guidelines for incorporating these investments into defined-contribution plans. Proponents argue that private assets offer diversification and higher returns compared to traditional stocks and bonds, with BlackRock's Larry Fink suggesting a future portfolio mix of 50/30/20 (stocks, bonds, private assets). However, experts like Lisa A.K. Kirchenbauer caution against the risks, including low liquidity and complexity, advising investors to limit exposure to 5-10% and fully understand the investments. Major firms like BlackRock, Empower, and Voya are already developing products with private assets, aiming for enhanced returns, but concerns persist about higher fees, lack of transparency, and suitability for average investors. Critics highlight that private assets, often reserved for sophisticated investors, may conflict with the flexibility needed by 401(k) participants and could increase costs, despite recent reductions in plan fees due to index funds. The move aims to democratize access to alternative investments but raises questions about whether regular savers are equipped to navigate these complex options.
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Global risk appetite surged on Friday, driving gains in cryptocurrencies, equities, and gold futures, while oil prices headed for their steepest weekly decline since June, dropping over 4% due to rising US inventories and weak Chinese import data. The total crypto market cap increased by 3% to $3.76 trillion, with altcoins like Ether (+7.3%), XRP (+12%), Solana (+4.7%), and Dogecoin (+8.8%) leading the rally, though Bitcoin lagged with a modest 1.9% rise to $116,781. Bitcoin demand appears to be cooling, with market sentiment shifting from euphoria to caution, evidenced by a 25% drop in spot Bitcoin ETF inflows, reduced network activity, and lower transaction fees. BTC remains stuck between $112,000 support and $120,000 resistance, while options markets show increased hedging below $100,000. In broader markets, Asian indices like the MSCI Asia Pacific Index (+0.5%) and Japan’s Nikkei-225 (+2.3%) gained, buoyed by eased US-Japan trade tensions. Analysts note the crypto rebound aligns with stock market optimism, but warn of potential stagnation for Bitcoin amid a summer lull.
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Binance, the leading global cryptocurrency exchange, is collaborating with Spanish bank BBVA to allow customers to store their assets outside the exchange, according to a Financial Times report. BBVA is one of a limited number of independent custodians supporting Binance in this initiative, as confirmed by sources familiar with the arrangement. This step comes at a time when Binance is under intense regulatory pressure worldwide, highlighted by a $4.3 billion penalty imposed by U.S. authorities in February for breaches in anti-money laundering and sanctions laws. Additionally, Binance’s founder, Changpeng Zhao, received a four-month prison sentence related to these lapses. The partnership with BBVA is seen as an effort to enhance investor trust in the safety of funds, especially in the aftermath of the 2022 FTX collapse, which shook the crypto industry. Neither BBVA nor Binance provided immediate comments to Reuters on the report. This development reflects broader trends in the cryptocurrency sector, where exchanges are seeking to address security concerns and regulatory compliance to maintain credibility and protect user assets amidst ongoing challenges.
