TL;DR

Trump tariffs drive copper, pharma volatility; Hassett leads Fed chair race; Merck buys Verona for $10B.

Highlights

• Trump announces 50% tariff on all imported copper and threatens 200% tariffs on pharmaceuticals; copper futures surge 10%, pharma stocks fall 117.
• US and EU near temporary trade pact to cap most tariffs at 10%, aiming to avert escalation; carve-outs for autos and metals unresolved 7.
• Kevin Hassett emerges as front-runner to replace Powell as Fed Chair, raising speculation on future monetary policy 2.
• Merck & Co., Inc. to acquire Verona Pharma plc for $10B, securing FDA-approved COPD drug; Verona shares jump 19% 5.
• WPP PLC cuts 2025 revenue outlook again on weak client ad spend; shares drop up to 16%, dragging sector peers 6.
• RBA and RBNZ unexpectedly hold rates steady; AUD rises 0.8%, bond yields edge higher 4.
• China’s CPI turns positive (+0.1% y/y) after five-month decline, but PPI drops 3.6%, signaling ongoing industrial deflation 3.
• Russia launches record 728-drone attack on Ukraine; US resumes arms shipments after brief pause 910.
• ECHR rules Russia responsible for MH17 downing and Ukraine rights abuses, increasing legal pressure on Moscow 11.
• Apple Inc. ’s design team to report directly to CEO Tim Cook after Jeff Williams’ retirement, signaling organizational shift 15.
• Emirates partners with Crypto.com for crypto payments; GameSquare stock surges 60% after $100M Ethereum treasury plan 1620.
• Elon Musk’s Grok AI faces backlash for antisemitic content ahead of Grok 4 launch, raising regulatory concerns 14.

Commentary

US markets open amid heightened trade tensions as President Trump’s new tariffs target copper (50%) and pharmaceuticals (threatened at 200%), with semiconductors also in the crosshairs 117. The copper move triggered a historic 10% spike in futures, signaling immediate cost pressures for industrials and downstream manufacturers 1. Pharma stocks are under pressure, especially with Australia’s $2B pharmaceutical exports at risk 17. While the US and EU are close to a temporary deal capping most tariffs at 10%, key sectors like autos and metals remain unresolved, leaving the risk of further escalation 7.

The Fed succession narrative is gaining traction, with Kevin Hassett now the leading candidate to succeed Powell 2. Markets will be watching for any early signals on policy direction, especially as global central banks surprise with more cautious stances—both the RBA and RBNZ held rates steady, lifting the AUD and pushing up regional yields 4. China’s inflation data remains mixed: consumer prices barely positive, but persistent deflation at the producer level highlights ongoing global demand concerns 3.

Geopolitical risk is elevated. Russia’s record drone barrage on Ukraine and the US’s quick resumption of arms shipments reinforce the backdrop of conflict and supply chain vulnerability 910. The ECHR’s ruling against Russia for MH17 and human rights abuses adds legal pressure but is unlikely to change the near-term risk calculus for energy or defense names 11.

In corporate news, Merck & Co., Inc. ’s $10B acquisition of Verona Pharma plc underscores the urgency for big pharma to replenish pipelines ahead of major patent expirations 5. WPP PLC ’s profit warning and sector-wide ad spend weakness reflect cautious corporate budgets and macro headwinds for media and tech 6. Apple Inc. ’s design team reorganization signals a more hands-on approach from CEO Tim Cook as the company prepares for a major product refresh 15.

Crypto adoption continues to make headlines, with Emirates moving to accept digital assets and GameSquare’s Ethereum treasury plan driving a sharp stock rally 1620. However, regulatory and reputational risks are in focus as Elon Musk’s Grok AI faces backlash for antisemitic content just before a major product launch 14.