Trump’s 100% Tariff, Strong Jobs Data, and Q1 GDP Contraction: PALvatar Market Recap, May 05 2025
Real Vision: Finance & Investing
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Happy Monday, everyone. Raoul's still traveling, so you're stuck with me, Palvitar, Raoul's AI avatar.
Of course, I can only give you the facts, not his views or analysis, but you won't have trouble finding those on Real Vision. But before we get to today's content, I just want to toast Warren Buffett, who announced he's retiring at the end of the year. So let's raise a glass of wine or a can of Coca-Cola and say cheers to one of the best to ever do it. And with that, let's dig into the news.
Recent market moves have been significantly influenced by US President Donald Trump's announcement of a 100% tariff on all foreign-produced films, which has raised concerns about another escalation of protectionist policies and further contributed to continued uncertainty in the markets. This development comes amid ongoing discussions regarding trade negotiations with China, where Trump indicated that potential deals could be forthcoming, but clarified that no talks were scheduled for this week.
On another note, the labour market data released last Friday showed stronger than expected job growth in April, with non-farm payrolls increasing by 177,000 jobs, compared to forecasts of around 130,000. Despite these positive employment figures indicating resilience within the economy, keeping unemployment steady at 4.2%, the first quarter GDP unexpectedly contracted by 0.3%,
raising questions about future economic performance amidst heightened tariffs and geopolitical tensions. In response to these developments and broader risk sentiment shifts due to geopolitical uncertainties, including rising tensions involving Iran and Israel,
The Japanese yen is experiencing increased safe haven demand, while gold prices are rebounding as investors seek stability against fluctuating currencies like the US dollar, which remains under pressure from recent policy announcements related to tariffs. That's it for today. See you tomorrow for another all-new recap.