Market Talks covering the impact of U.S. Politics and White House policies on companies and markets. Published exclusively on Dow Jones Newswires throughout the day.

1351 ET - Spain aims to keep working with the U.S. to maintain good cross-Atlantic trade relationships, Spanish trade minister Carlos Cuerpo says after meeting with U.S. Trade Rep Jamieson Greer in Washington, D.C. "A constructive dialogue with my U.S. counterpart," Cuerpo says in a post on X. "We both put across our desire to protect and strengthen the trans-Atlantic relationship, which is the most important in the world," he says. Most U.S. trade tariffs on European goods are currently paused following President Trump's initial announcement of steep new duties earlier this month, as are the EU's planned retaliatory measures. (joshua.kirby@wsj.com; @joshualeokirby)

1206 ET - Canadian payroll data covering February is further evidence that the Bank of Canada erred in leaving its benchmark interest rate unchanged last week, says economist David Rosenberg. Payrolls in Canada fell 49,000 in February, Statistics Canada reports, and January's data were revised downward. The head of Rosenberg Research says the most rate-sensitive sectors of the economy--real estate, construction and retail--recorded a collective payroll drop of 14,000. Rosenberg says this indicates that BOC rate cuts to date "have yet to percolate" through the economy. BOC's fixation on tariff-fueled inflation "is beyond bizarre," given the pain US tariffs are exerting on Canadian business and consumer confidence. He believes the BOC needs to cut in June, and beyond. (Paul.Vieira@wsj.com, @paulvieira)

1159 ET - IBM says its consulting business is more susceptible to discretionary spending pullbacks and fallout from the Department of Government Efficiency. CEO Arvind Krishna says the technology company had a couple of contracts that were impacted by DOGE in the first quarter. He clarified that business with the federal government represents less than 5% of IBM's overall annual revenue, and less than 10% of its consulting sector. "We are not immune from all those activities, just like everybody else," Krishna says. But "the work we tend to do is much more mission-critical, is much more about building the government systems which make them more efficient and so, we see them carry on." (roshan.fernandez@wsj.com)

1156 ET - IBM CFO James Kavanaugh says the company has diversified its supply chain for the past few years and impacts from escalating tariffs have been minimal. Goods imported to the U.S. represent less than 5% of IBM's overall spending, Kavanaugh says. IBM CEO Arvind Krishna says the company appreciates the Trump Administration's "focus on economic growth and rational regulation." "We believe this will result in long-term value creation and make it easier for technology to contribute to economic growth," Krishna said. Shares fall 7.5% to $226.91. (roshan.fernandez@wsj.com)

1139 ET - Base metal prices rise, with LME three-month copper up 0.2% at $9,388 a metric ton and LME three-month aluminum up 0.1% at $2,444.50 a ton. President Trump's unpredictable rollout of tariffs continues to confuse price action across markets, Liberum analysts say in a note. Copper prices slumped after Trump unveiled so-called "Liberation Day" tariffs in early April, before gaining on a partial tariff reprieve. Over the last week, price turmoil has largely been driven by talks of a reversal of U.S. tariffs leveled at imports from China and the Trump administration's push to end the war in Ukraine on terms perceived as favorable to Russia, Liberum says. These developments are potentially bullish for industrial commodities, Liberum says. That said, "Trump's managing both events, so the confusion's probably set to continue," Liberum says. (joseph.hoppe@wsj.com)

1134 ET - West Fraser Timber's U.S. presence helps mitigate tariff risk, CIBC's Hamir Patel says. In a report, the analyst notes that 53% of West Fraser's lumber capacity is located in the U.S., and 60% of the North American OSB capacity, or oriented strand board, a type of engineered wood product that West Fraser manufactures for various construction applications. Because of this, "West Fraser is well positioned to navigate potential Section 232 tariffs later this year--which seem likely to hit lumber and may even be applied to OSB as a timber derivative product," he says. (adriano.marchese@wsj.com)

1125 ET - Gold futures rise as persistent concerns over trade tensions and geopolitical instability raise market worries. Futures are up 1.3% at $3,331.90 a troy ounce. The precious metal's price has been volatile, reaching a new record high of $3,509.90/oz on Tuesday, before falling as low as $3,270.80/oz on Wednesday. The latest rebound in gold prices follows renewed uncertainty surrounding U.S.-China negotiations, Exness's Christopher Tahir says in a note. While U.S. Treasury Secretary Scott Bessent admitted current tariff levels on China are unsustainable and will need to be cut over time, he downplayed any imminent progress, tempering market optimism, Tahir writes. Elevated tariffs could hinder global growth and exacerbate fiscal challenges, in turn driving safe-haven demand and gold prices higher, Tahir adds.(joseph.hoppe@wsj.com)

1111 ET - Euro-denominated credit spread volatility is expected to decline further as the 90-day pause on most tariffs by the U.S. has alleviated investor concerns, CreditSights' Logan Miller says in a webinar. However, caution is still warranted, the analyst adds. "Volatility is likely to come down from the peaks seen in recent weeks, but there is still some risks." (miriam.mukuru@wsj.com)

1110 ET - The impact to consumer spending on toys seen so far from President Trump's tariff campaign has been akin to the slowdown seen during the recession of 2008 and 2009, Hasbro CEO Chris Cocks says on a call with analysts. The toy category is once again down in the mid-single-digits, but Hasbro is doing a bit better this time thanks to its more diversified offerings, he says. The inflation outlook meanwhile is starting to look like it did during the pandemic in 2020 and 2021, the CEO says. "We basically see a combination of inflation and some recessionary pressures on the macro," Cocks says. (dean.seal@wsj.com)

1048 ET - Hasbro doesn't expect to feel much pain from the evolving global tariff war in the short-term, since it doesn't expect to have a large number of deliveries here in the first four to five months of the year, CEO Chris Cocks says on a call with analysts. There would however be incremental tariff exposure coming next year if the tariffs that are currently in place aren't changed or eliminated, he says. The toymaker is diversifying its product sourcing to deal with the potential headwinds and expects to move from eight sourcing countries to about nine or 10 in the very near term, Cocks says. Shares rise 15% to $60.92. (dean.seal@wsj.com)

1028 ET - PepsiCo is looking to its international markets to be a growth driver as uncertainty pervades the U.S. economy, though some of those markets are seeing slowdowns too, CEO Ramon Laguarta says on a call with analysts. Chief among them is China, where the consumer seems to be hurting to a degree, the CEO says. The market in Mexico appears to be impacted by the U.S. in terms of weakening consumer sentiment and consumer disposable income, Laguarta says. Conversely, Europe appears to be navigating the uncertain global economic environment well, and India and Brazil are showing positive signs too, the CEO says. (dean.seal@wsj.com)

1011 ET - CBOT grain markets are mixed in early action, with traders waiting for tangible evidence that negotiations between the U.S. and China over trade have actually started. "The 'hope' for a U.S.-China trade war negotiation appears to still be just that at this point," says Matt Zeller of StoneX in a note. CBOT soybeans are flat, wheat is down 0.2%, and corn is up 0.3%. (kirk.maltais@wsj.com)

(END) Dow Jones Newswires

April 24, 2025 13:51 ET (17:51 GMT)

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