Here are five things you need to know this morning
Stocks soar on U.S.-China agreement: North American stock markets were set to open sharply higher after the United States and China agreed to temporarily lower tariffs on each other’s products. According to a joint statement from officials in a briefing this morning in Geneva, the combined 145 per cent U.S. levies on most Chinese imports will be reduced to 30 per cent by May 14, while the 125 per cent Chinese duties on U.S. goods will drop to 10 per cent. “We are in agreement that neither side wants to decouple,” U.S. Treasury Secretary Scott Bessent said. There is also optimism that the world’s two largest economies will be able to settle on a more permanent agreement.
Trump plans U.S. drug price cuts: One group that may not see its shares rise today is the pharmaceutical sector. That’s after U.S. President Donald Trump said he planned to order a cut in American prescription drug costs. In a social media post this morning, Trump said drug prices will be cut by “59%, PLUS!” Over the weekend, Trump vowed to sign an executive order to institute what he called a most-favoured nation policy, mandating that Americans pay no more than people in countries that have the lowest price and promising a 30 to 80 per cent cut in drug prices.
US$2.1 billion silver deal: Two Vancouver-based silver-mining companies are teaming up in a transaction valued at US$2.1 billion. The cash-and-stock deal will see Pan American Silver absorbing MAG Silver. Pan American says the deal bolsters its silver portfolio through the addition of MAG’s joint venture interest in the Juanicipio mine in Mexico. Pan American said it expects to issue about 60 million shares in the transaction, with MAG shareholders owning roughly 14 per cent of the combined company.
Canadian consumer confidence rises: Canadians are feeling better about the prospects for our economy. The latest Bloomberg Nanos Canadian Confidence Index jumped to 48.6, from its reading of 46.9 the previous week. The polling followed the victory of Prime Minister Mark Carney’s Liberal Party in the federal election. A reading below 50 still indicates negative views, but it’s the highest in nine weeks. About 16 per cent of respondents believe the Canadian economy will strengthen over the next six months, up from around 10 per cent at the beginning of April.
Nissan job cuts could total 20,000: There’s another sign of turmoil in the global auto industry. Japanese broadcaster NHK is reporting Nissan Motor Co. will eliminate 11,000 more jobs than previously planned. The Japanese carmaker said in November it would cut 9,000 positions after weak sales in the U.S. and China led to a 94 per cent drop in first-half net income. Now those job cuts will be closer to 20,000, or around 15 per cent of the entire workforce, according to Japan’s national broadcaster, with the cuts to occur both at home and overseas. Nissan declined to comment.
