International News 30 June 2025
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Investors Pull Billions from Global Equities Amid US Economic Uncertainty
Global investors withdrew a massive US$ 20.87 billion from equity markets in the week ending June 25, 2025—the largest weekly outflow since March—as they adopted a cautious stance ahead of key U.S. economic and inflation data. Despite the MSCI World Index hitting record highs, U.S. equity funds saw a significant US$ 20.48 billion outflow, the biggest in three months. European equity funds also recorded net outflows, while Asia saw modest inflows for the first time in three weeks. Sector-wise, tech funds experienced the largest exodus since March at US$ 2.67 billion, whereas industrials enjoyed their 11th consecutive weekly inflow. Meanwhile, demand for high-yield bonds surged, with US$ 4.45 billion flowing in. Money market funds and emerging market equities faced continued outflows, while gold and energy funds attracted inflows—highlighting a shift toward defensive and inflation-hedging assets.
Toyota’s Global Sales Hit May Record Despite Trump’s Tariffs
Toyota Motor posted a 6.9% year-on-year increase in global vehicle sales in May 2025, reaching 898,721 units—a record for the month—thanks to strong demand in key markets like the U.S. (up nearly 11%), China, and Japan. However, global production slipped 0.7% due to fewer operating days in Japan. The positive sales momentum comes despite mounting pressure from U.S. trade policies, including a 25% automotive tariff imposed under President Donald Trump. While Toyota’s performance remains resilient, Japan’s auto sector overall is struggling. Vehicle exports to the U.S. plunged 24.7% in May, and auto parts exports fell 19%. Japan is now racing to negotiate with Washington to avoid a retaliatory 24% tariff set to take effect on July 9, which could further strain its manufacturing industry.
https://internasional.kontan.co.id/news/rekor-penjualan-mobil-global-toyota
Trump Halts Trade Talks with Canada Over Digital Tax, Threatens New Tariffs
U.S. President Donald Trump abruptly suspended trade negotiations with Canada on Friday (June 27) in response to Canada’s plan to impose a 3% digital services tax targeting U.S. tech giants like Google, Meta, Apple, and Amazon. Trump called the tax a “blatant attack” and warned of new tariffs on Canadian goods within seven days. The move reignites trade tensions shortly after progress was made during the G7 summit. Canada is the U.S.’s second-largest trading partner, with over $760 billion in two-way trade annually. While Canada’s government vowed to stay engaged in talks to protect national interests, U.S. Treasury Secretary Scott Bessent suggested that a Section 301 investigation could be launched against Canada’s digital tax—potentially paving the way for retaliatory tariffs. Despite the rising trade uncertainty, U.S. markets closed the week at record highs, though consumer sentiment remains vulnerable to ongoing tariff risks.