Syz the moment

Source: Mike Zaccardi, CFA, CMT, MBA

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Check the date and do the math

From foreign aid to renewable energy programs, federal agencies are bracing for sweeping cuts. As Trump’s budget proposal slashes $163 billion from nondefense discretionary spending, it threatens to eliminate some programs entirely. Meanwhile, it boosts the Pentagon’s budget by 13%, raising it to $962 billion in 2026.As Trump’s budget proposal slashes $163 billion from nondefense discretionary spending, it threatens to eliminate some programs entirely. Meanwhile, it boosts the Pentagon’s budget by 13%, raising it to $962 billion in 2026. The Pentagon stands to gain an additional $114 billion—the largest budget increase by far. In particular, funding would be directed to building a “Golden Dome”, a multi-billion dollar missile shield that includes orbital sensors, satellites, and missiles on the ground. By the end of his term, Trump wants to spend $175 billion on its architecture.

Source: Bloomberg

The negotiators will now seek approval on the framework from the U.S. and Chinese presidents, before implementing it. The U.S. and China have reached an agreement on trade, representatives from both sides said after a second day of high-level talks in London, with the deal now awaiting a nod from the leaders of the two countries. “We have reached a framework to implement the Geneva consensus and the call between the two presidents,” U.S. Commerce Secretary Howard Lutnick told reporters. That echoed comments to reporters from Li Chenggang, China’s international trade representative and a vice minister at China’s Commerce Ministry. U.S. President Donald Trump and Chinese President Xi Jinping spoke by phone late last week, stabilizing what had become a fraught relationship with both countries accusing each other of violating the Geneva trade agreement. At a meeting in Switzerland in mid-May, the world’s two largest economies had agreed to a 90-day suspension of tariffs added in April, and a rollback of certain other measures. Lutnick said he and U.S. Trade Representative Jamieson Greer will head back to Washington, D.C., to “make sure President Trump approves” the deal outline. If Xi also agrees, then “we will implement the framework,” Lutnick said. Chinese restrictions on rare-earth exports to the U.S. are a “fundamental part” of the latest agreement and the U.S. expects the issue “will be resolved in this framework implementation,” Lutnick said. He indicated U.S. restrictions on sales of advanced tech to China in recent weeks would be rolled back as Beijing approves rare-earth exports. While Chinese state media had been quick to announce Xi’s call with Trump last week, Beijing’s official mouthpieces were conspicuously silent more than one hour after Lutnick’s comments, except for a lower-profile mention citing Vice Commerce Minister Li as saying that the talks helped build bilateral trust. On Tuesday local time in London, U.S. Treasury Secretary Scott Bessent told reporters he was headed back to the U.S. in order to testify before Congress. Chinese Vice Premier He Lifeng, the lead negotiator on trade talks with the U.S., and Chinese Minister of Commerce Wang Wentao also participated in this week’s discussions. China’s CSI 300 index was trading slightly higher, while U.S. stock futures were down as investors awaited details on the trade framework. First take >>> The fact that the two sides will now brief their leaders could be a sign that some disagreements or unresolved details still require internal discussion. The framework agreement signals a commitment to de-escalate and continue the dialogue process, but whether it will lead to concrete agreements or substantive breakthroughs continues to be uncertain. Source: Bloomberg, CNBC

At a time when the White House has been suggesting the two leaders could talk this week amid a rise in trade tensions: “I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!,” the U.S. president wrote on Truth Social. That post on the social media platform came after a senior White House official told CNBC on Monday that Trump and Xi were likely to speak this week. Chinese Foreign Minister Wang Yi told the new U.S. Ambassador David Perdue during a meeting Tuesday that the recent string of “negative measures” by the Trump administration were based on “groundless reasons,” and undermined China’s legitimate rights and interests, according to the official English readout. Source: CNBC

The U.S. government has extended its pause on some tariffs imposed on Chinese goods until August 31, 2025. This move comes during ongoing trade negotiations between the Donald Trump administration and several key global trading partners. #taco (Trump Always Chicken Out) #trade Source: Vincent Artman @geogvma