Trump’s Tariffs Threaten

Hey Superheroes,

Australia’s monthly CPI came in at 2.1% in the year to October – the same as the figure recorded in September – signalling that inflation is still sitting within the RBA’s 2% to 3% target range.

Some of the biggest movers on Wall Street were Dell and HP, both of which lowered earnings expectations for this quarter and saw their shares fall by 12% and 11% respectively.

Trump’s plans to impose tariffs on Canada, Mexico and China 

Imagine imposing tariffs on your three largest trading partners.

U.S. President Donald Trump is still weeks away from his 20 January 2025 inauguration, but has already made headlines – he’s planned to impose a 25% tariff on goods from Mexico and Canada, and an additional 10% on existing tariffs on Chinese imports if the three countries fail to adhere to his conditions.

For Mexico and Canada, Trump’s conditions include stricter measures to curb drug trafficking and illegal immigration into U.S. borders. Meanwhile, China is being pressed to enforce death penalties for drug dealers linked to the fentanyl trade.

 📊 Global Market Reaction

Since Trump’s announcement, the Canadian dollar has plunged to its lowest level since 2020 while the Mexican peso dropped to a two-year low. One economist has even warned that the planned tariffs could push Canada’s economy into recession.

Despite not directly impacting Australian exports, the Aussie dollar still fell to a seven-month low. 

ANZ chief economist Richard Yetsenga has also warned that Australia could face substantial risks from a tariff war which could potentially drive up prices and disrupt international trade flows. He cautioned this may only mark the beginning of broader economic instability under Trump 2.0.

👀 Will This Come True

If Trump proceeds with his proposed tariffs, American consumers could face steep price hikes on nearly everything – from everyday essentials to gasoline. This could push inflation up and potentially keep the Fed Funds Rate higher for longer. 

The Wild Ride Of IPOs

It’s been an eventful week on the ASX with three new companies listing on the markets. And the excitement doesn’t stop there — seven more companies are set to go public before the holiday season. This year has seen a 10% year-on-year increase in IPOs on the ASX.

For the unfamiliar, an “IPO”, or Initial Public Offering, is when a private company transitions to a public one, offering its shares for sale to the public for the first time. Also known as a ‘public flotation’ or ‘public listing,’ it allows anyone to purchase and trade the company’s shares through a broker.

Now, let’s take a closer look at some of the latest IPOs.

🌎 ASX IPOs

Cuscal (ASX:CCL), a payments and data services provider:

• Issue Price: $2.50
• Date of IPO: 25 Nov 2024
• Total Raise: $336.8M
• Market Capitalisation: $1.74B

Renerve (ASX:RNV), a medical device company specialising in nerve repair:

• Issue Price: $0.20
• Date of IPO: 26 Nov 2024
• Total Raise: $7M
• Market Capitalisation: $19M

Vitrafy Life Sciences (AXS:VFY), a new biotech company pioneering in cryopreservation:

• Issue Price: $1.84
• Date of IPO: 26 Nov 2024
• Total Raise: $6M
• Market Capitalisation: $80M

You can check these out on Superhero’s “New Listings” category through the Discover tab on the Superhero app. 

🔦  Some other things we’re shining the Spotlight on:

JB HIGH-FIVE: JB Hi-Fi is pulling ahead of its major rival Harvey Norman with a market capitalisation now approaching A$10B. The former’s sales seem to be trailing behind that of The Good Guys, JB Hi-Fi’s division that competes with Harvey Norman.

CBA’S VISION: The Commonwealth Bank of Australia is shaping up customer service by leveraging a chatbot powered by OpenAI. This technology is highly involved in managing payment disputes, handling an impressive 15,000 cases daily.

THE FADING STAR: Star Entertainment hit a record low of 19¢ after Macquarie’s downgrade. This follows yesterday’s 7.1% drop that followed the Star’s announcement of $27M loss in the first four months of FY25. 

Keep up to date on the markets by following us on Instagram, @superheroau!