Just when it looked like Trump’s tariffs would dominate the headlines again, the courts stepped in and flipped the script. Markets cheered on hopes that a rare judicial win over presidential power could return calm to global markets – find out why Apple is one US company closely watching these courtroom developments. Beyond the politics, we reveal why Deckers Outdoor posted some Ugg-ly numbers, and discuss why metals like platinum and copper are showing potential.
Court trumps tariffs
Shortly after President Trump walked back threats of a 50% tariff on goods from the European Union starting on June 1, a US court nullified all global tariffs, deeming them illegal. Bloomberg reported that a panel of three judges at the US Court of International Trade in Manhattan issued a ruling siding with Democratic-led states and a group of small businesses that argued Trump had wrongfully invoked an emergency law to justify the levies. The ruling dealt a major blow to a pillar of the Republican’s economic agenda and President Trump’s attempts to test the limits of presidential power. While the Trump administration immediately appealed, markets rallied on the news.
Apple crumbles
US tech giant Apple (AAPL-NASQ) has not escaped the tariff turmoil, with the Nasdaq index heavyweight falling 3% on threats of “at least” 25% tariffs for all imported iPhones. With more than 80% of these phones currently manufactured in China, it is impossible to rejig this supply chain in the short term. All eyes are on CEO Tim Cook for a solution to tame Trump’s ire.
Student debt hangover
Millions of Americans had their student loan payments paused during the pandemic but they are back on the hook again. Economists at Morgan Stanley estimated that payments this year will rise by a collective $1-$3 billion a month. According to a Wall Street Journal article, that could trim 2025 US gross domestic product by about 0.1 percentage points and put a dent in consumer spending.
Ugg-ly numbers
The owner of Uggs and Hoka, Deckers Outdoor (DECK-NASQ), got smashed, falling 20% on poor Q1 numbers and management pulling its full-year guidance. There are very few winners across the footwear value chain at the moment, but Crocs (CROX-NASQ) with its 8.6 times forward price-to-earnings (P/E) ratio (this means investors are currently willing to pay $8.60 for every $1 of expected future earnings over the next 12 months) looks like an interesting investment, if tariff talk calms down.
Investor activism in action
Bloomberg reported that Dutch pension fund PME is warning US money managers about caving in to pressure from the Trump administration to abandon basic principles of stewardship, citing concerns over climate change and the judiciary. PME is reviewing its €5 billion mandate with BlackRock Inc. (BLK-NASQ) and has introduced a revised screening process to assess holdings based on good governance, freedom of association, and environmental considerations.
Harmonious union?
Mac Copper Limited’s life on the ASX boards looks set to end just 15 months after it listed after Harmony Gold (HAR-JSE) made a $1 billion offer to buy the company as part of its global copper expansion plans. In December 2022, Harmony acquired the Eva copper mine, a development-stage asset, in Queensland from Copper Mountain Mining for about $350 million. It had $US592 million cash ($911 million) on its balance sheet at March end, and has said it wants to establish Harmony as an “international gold and copper producer”.
Sector focus: Platinum
Platinum rallied to a two-year high, lifted by signs of renewed jewelry demand in China and concerns about a deficit. Spot prices surged toward $1,100 an ounce, rising by 11%. The upswing came after figures showed China imported the most platinum in a year last month, as the metal’s relative stability and cheapness enhanced its attractiveness over gold, which has hit a series of records. Chinese EV maker BYD also offered discounts on 22 electric and plug-in hybrid models until the end of June, fanning the flames of a renewed sector-wide price war, which would support demand for platinum group metals (PGMs).
Stock focus: WeBuyCars
WeBuyCars (WBC-JSE) released strong numbers for the first half of the financial year, with plans in place to significantly boost capacity to move used vehicles. The company saw a 13% rise in volume growth. While this was a bit below expectations, it reflects a below-average increase in parking bays, which is an important factor in the company’s ability to market and sell vehicles. To address these capacity constraints, WeBuyCars is adding three new supermarkets that will lift the number of bays from 11,900 as of 31 March to roughly 15,000 by 30 September. This should support an acceleration in the volume of units sold in the second half of the financial year and into 2026. Revenue growth came in at +15% in H1, but is expected to reach 20% for the full year.
