Morning Economic Report 6-10-25

Economy update

The only game in town is the China-US trade talks, which are taking place in London. According to US officials negotiations are going well, meaning that they have not broken down. The focus is on easing US export restrictions on chips in return for China expediting rare earth exports to the US. Even in case of an agreement, general reciprocal tariffs will probably remain higher than pre-Liberation Day. There is a tangible optimism amongst investors echoed in resilient equities, falling bond yields and a slightly stronger dollar. Tomorrow’s US CPI readings are projected to show a slight uptick in both headline and core consumer prices