Hollywood studios such as Warner Bros Discovery and Paramount and streaming platforms including Netflix were left reeling after US President Donald Trump sent shivers through the global film industry with his threats of 100% tariffs on movies not made in America.
The return of tariff talk is poised to end the nine-day winning streak for the Nasdaq Composite, although US Treasury secretary Scott Bessent reckons some deals might be announced as soon as this week. Taiwan’s surging currency is threatening earnings for the likes of chipmaker Taiwan Semiconductor Manufacturing Co.
Meanwhile, artificial intelligence giant OpenAI has pulled its plans to restructure into a for-profit entity, although that didn’t dent Microsoft’s day, which was still on the green side of the ledger.
And it’s all eyes on NZME today with reports from its NZ Herald flagship that chair Barbara Chapman will bow out today, handing over the reins of the media group to former minister and radio entrepreneur Steven Joyce.
Guess who’s back
Trump sent filmmakers around the world into a tailspin after saying he plans to slap a 100% tariff on all films not made in the US, leaving people to ponder just how such a levy might work.
That weighed on entertainment companies such as Warner Bros Discovery, Paramount and Netflix, although Walt Disney Co advanced on the day. NZX-listed Sky Network Television dipped 0.6% yesterday.
Meanwhile, stocks on Wall Street were mixed after Trump’s latest missive on tariffs weighed on movie stocks, with the Nasdaq poised to end its longest winning streak since 2004, down 0.3% at 7am in Auckland. Meanwhile, the Dow Jones Industrial Average nudged up 0.1%.
“While those comments didn’t have much market impact apart from falls in US entertainment stocks, market attention returned to Taiwan,” Bank of New Zealand senior markets strategist Jason Wong said in a note. “On the back of a more than 4% gain on Friday, Taiwan’s dollar surged as much as another 4%-plus to a three year high, supported by hope of trade war de-escalation with China, combined with a liquidity squeeze from the closing of short positions.”
The kiwi dollar dropped to 17.60 Taiwanese dollars from 18.27 dollars last week. The local currency traded at 59.71 US cents from 59.76 cents yesterday.
The tide is high
The surging Taiwanese dollar raised fears that the territory’s tech sector export earnings may come under threat, such as those for chipmaker TMSC. Nvidia was weaker on Wall Street.
Meanwhile, OpenAI has given up on its controversial restructuring to shed its non-profit status. Microsoft extended its winning run for a fifth day.
Ford Motor Co and Palantir Technologies are due to report after the close of trading on Monday.
Meanwhile, stocks in Europe were broadly stronger with Germany’s DAX 30 up 1.1%.
Australian futures are pointing to a slightly softer day for the S&P/ASX 200 index.
New Zealand publisher and broadcaster NZME will be in focus today after reports emerged in Australia last night that chair Barbara Chapman is poised to resign, ending the campaign by shareholder Jim Grenon who’s been agitating for a boardroom sweep. The company’s flagship publication NZ Herald reported that former minister Steven Joyce is expected to take over the chair.
Reporting by Paul McBeth. Image from Nathan DeFiesta on Unsplash.
