Global Market News
Global Equities Tumble
Global equities declined this week amid a rollercoaster of tariff developments from the Trump administration, keeping investors on edge. The S&P 500 and Dow Jones tumbled 3.10% and 2.37%, respectively, while the Nasdaq decreased 3.45%. The US 10-year Treasury note dropped as low as 4.11% earlier in the week but closed Friday at 4.30%. The price of a barrel of West Texas Intermediate crude oil declined nearly 4%, ending the week at $67.04. Volatility, as measured by the CBOE Volatility Index, skyrocketed more than 20% over the last 5 days, closing Friday at 23.37.
China Targets 5% Growth for 2025
This week, Beijing announced it is targeting 5% economic growth for 2025, the same rate as in 2024, despite concerns from investors and economists that this will be difficult to achieve given rising trade tensions with the U.S. and weak domestic consumption. To support this growth, China plans to run a larger-than-average budget deficit of 4% of GDP. The additional funds are expected to be used for boosting domestic consumption, improving infrastructure, and supporting technological innovation. U.S. President Trump has imposed a cumulative 20% in new tariffs on China this year, which, according to the Economist Inteligence Unit, could reduce China’s GDP by about 0.6 percentage points from 2025 to 2027.
International Developments
Venezuela’s Escalation in the Essequibo Dispute Threatens Exxon’s Offshore Operations
On March 1st, a Venezuelan warship entered Guyana’s exclusive economic zone (EEZ), confronted the ExxonMobil-operated Liza Destiny oil facility, and asserted Venezuela’s claim over the waters. Guyana condemned the incursion, mobilized its military while seeking a peaceful resolution, and vowed to protect its sovereignty, while Venezuela denied violating Guyana’s sovereignty, asserting the waters are part of a contested maritime zone.This incursion intensified tensions in the longstanding territorial dispute, despite the Argyle Accords signed in December 2023 to de-escalate conflicts over the Essequibo region. Venezuela has continued its efforts to consolidate control over the contested area, including military buildups and legislative actions such as the April 2024 establishment of “Guayana Esequiba” as a Venezuelan state.
Germany’s Fiscal Overhaul
This week, Friedrich Merz, Germany’s expected next chancellor, announced the removal of fiscal limits on military spending and a €500 billion infrastructure investment fund, marking a dramatic shift in economic policy.The initiative aims to rapidly expand Germany’s military, aligning with U.S. demands under President Trump’s second term while modernizing transport, energy, and digital infrastructure to boost economic growth. Rheinmetall, a leading defense firm, saw its market capitalization surpass €50 billion, while Germany’s blue-chip index surged over 3%, reflecting investor optimism amid anticipated defense and industrial expansion. Economists estimate the infrastructure spending could generate €750 billion in additional GDP by 2035, with Germany’s annual growth rate potentially rising to 1.5%-2% starting in 2027, despite concerns over inflation and labor shortages.
Violence Erupts in Syria’s Latakia Province Amid Ongoing Civil War
Violence erupted in Syria’s Latakia region on March 6th, when Assad loyalists, including remnants of special forces under Suhail al-Hassan, attacked security positions, leading to at least 124 deaths—72 in combat, including 36 security personnel, 32 gunmen, and four civilians. Yesterday, the Syrian Observatory for Human Rights reported that security forces executed 52 Alawite men in Al-Shir and Al-Mukhtariya, Latakia, following fierce clashes with gunmen loyal to ousted president Bashar al-Assad. Syria’s new authorities imposed curfews in Latakia, Tartus, and Homs, launching a large-scale operation to eliminate Assad loyalists, detaining figures such as former general Ibrahim Huweija. Interim President Ahmed al-Sharaa, backed by Saudi Arabia and Turkey, has vowed to restore stability amid ongoing security crackdowns and reported human rights violations.
US Social & Political Developments
Trump Provides Temporary Reprieve for Canada and Mexico on Tariffs
Yesterday, U.S. President Trump signed orders expanding exemptions from newly imposed tariffs on imports from Canada and Mexico, including temporary relief for carmakers. This move followed intense trade discussions and a series of tariff rollbacks within two days, with Mexico’s President Claudia Sheinbaum and Canadian officials expressing mixed reactions. Despite some reductions, such as a drop in potash tariffs from 25% to 10%, approximately 50% of U.S. imports from Mexico and 62% from Canada may still be subject to duties. The tariff adjustments come amid concerns of a trade war between the U.S. and Canada, as financial markets react to ongoing uncertainty and economic impact.
Trump Delivers Address to a Joint Session of Congress Amid Controversial Policies
On Tuesday, President Trump delivered a lengthy 100-minute address to a joint session of Congress, marking the longest such speech in modern history. He boasted about his administration’s swift changes, particularly the influence of Elon Musk’s Department of Government Efficiency, despite controversial tariffs on Mexico and Canada. The speech heavily targeted Democrats, dismissing them and focusing on policies favored by his MAGA base, including anti-immigration measures and a culture war. It also featured demands for new policies such as increased deportations, tax cuts, and police protections, while sparking protests and walkouts from Democratic members of Congress.
Corporate/Sector News
BlackRock Consortium Takes Control of Panama Canal Ports in $19B Deal
U.S. President Donald Trump has praised BlackRock’s March 4th deal to acquire most of Hong Kong-based CK Hutchison’s $22.8 billion Panama Canal ports business, including 90% of Panama Ports Company— it has operated the Balboa and Cristobal ports at each end of the canal over the last two decades. This deal, valued at $19 billion after shareholder loans, grants BlackRock, along with Terminal Investment and Global Infrastructure Partners, control of 43 total ports, including the Balboa and Cristobal ports, across 23 countries. The acquisition comes amid U.S. efforts to reduce Chinese influence in the region, and CK Hutchison’s stock surged by 21.9% following the announcement. Despite political implications, CK Hutchison maintains the tran
Walgreens Sold to Sycamore for $10 Billion in Major Decline from $106 Billion Peak
Walgreens Boots Alliance, once a $106 billion giant, has been acquired by private-equity firm Sycamore Partners for $10 billion, marking a 91% decline from its peak valuation in 2015. The pharmacy chain, struggling with rising e-commerce competition and healthcare industry shifts, has failed to adapt to changing consumer behavior and intense cost pressures. Walgreens, which owns over 8,000 stores in the U.S., has faced declining cash flow and mounting debt. Sycamore is expected to restructure the business, possibly selling off parts of it, as it attempts to revitalize the core U.S. retail pharmacy operations.
Second Straight SpaceX Starship Failure Disrupts Air Traffic Over Florida
On Thursday, SpaceX’s Starship spacecraft exploded midflight during its eighth test mission, marking the second consecutive failure for the vehicle. The launch occurred from SpaceX’s Starbase in South Texas at 5:30 p.m. CT, with the spacecraft reaching an altitude of about 9 minutes before losing contact due to engine failure and attitude control loss. The explosion was visible over parts of Florida and the Caribbean, prompting the FAA to halt flights at major Florida airports until 8 p.m. ET. The incident follows a similar explosion during the January 16th Flight 7, which caused debris to rain over the Turks and Caicos Islands.
Recommended Reads
Trump’s Golden Age Begins With a Brutal Trade War
America’s carmakers win a tariff reprieve, but still face a tricky dilemma
Here’s how Trump’s tariffs could cost you and your wallet
DOGE is driving Social Security cuts and will make mistakes, acting head says privately
The demise of foreign aid offers an opportunity
Image of the Week
Video of the Week
What do the jobs of the future look like?
