The latest Market Talks covering U.S. politics. Published exclusively on Dow Jones Newswires throughout the day.

0808 ET - LVMH could face deteriorating trends in the U.S., Barclays analysts write in a note. The analysts expect the French luxury conglomerate to report first-quarter sales of 21.2 billion euros, flat on year. The U.S. market, where demand accelerated in the final quarter of 2024, has probably worsened due to the weaker sentiment resulting from stock market declines and the prospect of a trade war, they say. LVMH seems to be among the least-impacted names by President Trump's tariffs in the luxury space, partly due to the fact that it has part of its manufacturing located in the U.S. However, the indirect impact of duties on U.S. consumer sentiment could depress luxury spending there, the analysts add. Shares are up 1.6% at 515.80 euros. (andrea.figueras@wsj.com)

0806 ET - Tilray Brands, whose cannabis and drinks business straddles Canada and the U.S., says it doesn't anticipate a hit to sales from import tariffs after it conducted an analysis of the potential implications on its business. In the U.S., Tilray says its American beverage brands are solely manufactured and distributed within the U.S. market. In Canada, Tilray's cannabis brands are produced domestically for Canadian consumers. in Europe, Tilray manufactures medical cannabis brands and products for distribution across Europe and Australia. Chairman and CEO Irwin Simon says there continues to be opportunities in the alcohol, cannabis, and wellness industries. Tilray also sees a future in digital currencies and plans to accept cryptocurrency as a payment method online and says it is exploring strategic initiatives related to cryptocurrency. (robb.stewart@wsj.com)

0803 ET - The U.K.'s treasury chief says nothing is off the table in negotiations with the U.S. over tariffs, and that she will "shortly" meet U.S. Treasury Secretary Scott Bessent. "A trade war is in nobody's interests, it is why we must remain pragmatic, cool-headed and pursue the best deal with the U.S. that is in our national interest," Rachel Reeves tells lawmakers. Although she welcomed that the U.K.'s 10% levy on imports was lower than many other nations, additional tariffs on cars, steel, and potentially life sciences pose a challenge as they are some of the country's biggest exports, Reeves says. (edward.frankl@wsj.com)

0747 ET - Base metal prices rise, with LME three-month copper up 1.2% at $8,820 a metric ton and LME three-month aluminum up 0.7% at $2,390 a ton. Metals have ticked up as market angst around tariffs eases, though copper and aluminum remain down 9% and 5.8% on week, respectively. Copper sold off hard on the tariff rollout, unwinding a trade that had revolved around tariff expectations, SP Angel analysts say in a note. Focus is now on Chinese stimulus given the escalating trade war, with Chinese buyers ramping up copper purchases on Monday to take advantage of the dip, SP Angel says. China's property market remains moribund, and a jump in global demand for copper will likely be reliant on additional fiscal stimulus from Beijing, SP Angel adds. (joseph.hoppe@wsj.com)

0739 ET - Gold futures rise, recovering from a near four-week low spurred by profit-taking and loss-covering elsewhere in the market. Futures are up 1.8% at $3,026.10 a troy ounce. Renewed recession fears and escalating trade tensions have fuelled gold's rebound, Tickmill's Joseph Dahrieh says in a note. The revived safe-haven demand has been exacerbated by U.S. President Trump's threat to impose an additional 50% tariff on Chinese goods unless Beijing drops retaliatory measures, and the outlining of a broad set of counter-tariffs by the European Union, Dahrieh says. Investor attention now turns to the Federal Reserve meeting minutes and inflation numbers due Thursday. A softer Consumer Price Index reading could reinforce optimism around interest-rate cuts and support gold's gains, Dahrieh writes. (joseph.hoppe@wsj.com)

0724 ET - America's small businesses look set to prove more and more cautious on hiring and investment as their confidence reels from the tariff blow, Pantheon Macroeconomics' Oliver Allen says. Sentiment on Main Street in March fell back below its long-term average for the first time since Donald Trump's election victory, according to the National Federation of Independent Business's monthly survey set out Tuesday. That reflects concern and uncertainty over the impact of Trump's tariff package, and suggests small businesses will dial back their hiring and investment plans further in the coming months, Allen says. The silver lining for the Fed is that the blow to the jobs market will help ease wage pressure on inflation, he says in a note to clients. (joshua.kirby@wsj.com; @joshualeokirby)

0657 ET - Richemont could be pressured by U.S. tariffs and a deceleration in demand, AlphaValue analyst Jie Zhang writes in a note. The uncertain macroeconomic environment in the U.S. has begun to weigh on consumer behavior, the analyst says. The potential impact of President Trump's tariffs might prompt more price increases, requiring a balance between sustaining demand and safeguarding margins, she says. The Swiss luxury group will also need to cope with lower demand for watches as well as high fixed costs and elevated gold prices, which will weigh on its profitability, the analyst says. Furthermore, the group could face a deceleration in demand across Europe and the U.S. after the stronger-than-expected sales performance over the Christmas period. Shares rise 1.5% to 130.95 Swiss francs. (andrea.figueras@wsj.com)

0612 ET - The European Union should refrain from retaliating against U.S. tariffs, given that modern macroeconomic models confirm that outcomes are worse for all parties with retaliation, says BNP Paribas chief economist Isabelle Mateos y Lago. "For the U.S.'s trading partners, it would be better to resist the temptation to escalate and instead to double down on strengthening the engines of domestic growth," she says in a note. "Europe is particularly well placed to do this." The single-market investment plans recommended by Mario Draghi last year and embraced by the EU leadership since in defense, infrastructure and energy could do precisely that, on a scale that exceeds the U.S. bilateral trade deficit. Escalating tension further has the potential to backfire, she says. (edward.frankl@wsj.com)

0602 ET - Base metal prices rise, with LME three-month copper up 0.8% at $8,787 a metric ton and LME three-month aluminum up 0.3% at $2,379.50 a ton. Metal prices remain suppressed in the wake of President Trump's tariffs, however, with copper and aluminum down 9.3% and 6.05% on-week respectively. The drop was likely exacerbated by an overheated market, particularly on U.S. commodities exchange Comex given tariff fears, Commerzbank analysts say in a note. The mood at copper industry meeting Cesco in Chile appears to be divided, with Chilean copper commission Cochilco expressing cautious views on copper's price outlook, with the U.S.-China trade war in particular expected to be a major burden, the analysts write. Conversely Chile's state copper producer Codelco is reportedly more upbeat on copper's long-term demand prospects, Commerzbank says. (joseph.hoppe@wsj.com)

0447 ET - Hermes should be able to outperform its peers in the luxury industry, partly thanks to its stronger pricing power, Jefferies analysts say write in a research note. The French luxury group looks like a relative safe haven amid a challenging backdrop for the sector, marked by softening demand in the key U.S. market since mid-February and the potential new paradigm around Trump's tariffs, they say. "As we look into a highly uncertain future we maintain a relative preference for [Hermes]," the analysts say. Jefferies expects the company to report organic net sales growth of 8.2% in the first quarter. Shares are up 1.6% at 2,169 euros. (andrea.figueras@wsj.com)

0434 ET - Stock markets rebound after sharp declines in recent days, but uncertainty remains and this means volatility will continue, says Interactive Investor's Richard Hunter in a note. "It is far too early to say whether the reduced market falls represent an inflection point, or whether they are simply a classic 'dead cat bounce'," he says. "Further tariff announcements will follow which could move sentiment in either direction." After a series of steep drops since U.S. President Trump announced sweeping tariffs last week, the Stoxx Europe 600 index gains 0.9%; Germany's DAX index climbs 0.9%; and the U.K.'s FTSE 100 index rises 1.3%. (miriam.mukuru@wsj.com)

0409 ET - The U.K. is relatively well positioned to weather the tariff shock, and even some local producers may gain U.S. market share should companies relocate to avoid higher charges, Berenberg economist Andrew Wishart says. The additional 10% levy is at the bottom end of the range imposed by the U.S., and healthy consumer finances, lower energy prices and a fall in interest-rate expectations will also help, he says in a note. The U.K. government calculates the 10% tariff will directly reduce GDP by less than 0.1%, but despite spillover from worse-hit economies, the U.K. could even stand to make a gain, Wishart says. (edward.frankl@wsj.com)

(END) Dow Jones Newswires

April 08, 2025 08:08 ET (12:08 GMT)

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