Market Beats | China Orders Airlines to Halt Boeing Plane Deliveries; US Faces $90 Billion Economic Hit in 2025 From Decline in Foreign Tourism; Bill Ackman Donates $250,000 to Pro-Cuomo Super PAC; Hermès Surpasses LVMH in Market Value; New York State Factory Activity Contracts Again in April

—— China Orders Airlines to Halt Boeing Plane Deliveries; US Faces $90 Billion Economic Hit in 2025 From Decline in Foreign Tourism; Bill Ackman Donates $250,000 to Pro-Cuomo Super PAC; Hermès Surpasses LVMH in Market Value; New York State Factory Activity Contracts Again in April

1. China Orders Airlines to Halt Boeing Plane Deliveries

The Chinese government has ordered its domestic airlines to suspend taking any new deliveries of Boeing Co. aircraft, as part of its retaliation against US President Donald Trump’s tariffs of up to 145% on Chinese goods, according to people familiar with the matter.

The order, communicated to Chinese carriers, also includes instructions to halt any purchases of aircraft-related equipment and parts from US companies, the people said, asking not to be identified discussing private matters.

This move came after China announced retaliatory tariffs of 125% on US-made products last weekend. These duties alone would more than double the cost of US-manufactured aircraft and parts, making it economically unfeasible for Chinese airlines to take delivery of new Boeing jets.

Sources also said that Beijing is considering financial assistance or subsidies for Chinese airlines that lease Boeing aircraft and are now facing significantly higher operational costs due to the tariffs.=

Analysts warned that this decision could have a substantial impact on Boeing’s future delivery plans and global supply chain, as China remains a key market for the US aerospace giant. The trade conflict between the world’s two largest economies is now increasingly spilling over into the aviation sector.

Shares of Boeing fell as much as 4.6% in premarket trading after Bloomberg News reported on China’s latest move. As of Monday, Boeing’s stock had declined 10% year-to-date.

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2. US Faces $90 Billion Economic Hit in 2025 From Decline in Foreign Tourism

The US economy is poised to lose as much as $90 billion in 2025 due to a significant pullback in foreign tourism and growing global boycotts of American products, adding to the list of risks elevating recession concerns.

According to data released Monday by the International Trade Administration, arrivals of non-US citizens by air fell almost 10% in March compared to a year earlier. Goldman Sachs Group Inc. estimates that, in a worst-case scenario, reduced foreign travel and global consumer boycotts could weigh on US gross domestic product (GDP) by 0.3% this year — equivalent to nearly $90 billion.

Foreign tourism has been a key driver of US economic recovery in recent years following the lifting of pandemic-era restrictions. However, stricter US border controls, rising geopolitical tensions, and growing global economic uncertainty are prompting many potential international visitors to reconsider their travel plans.

With the US economy already grappling with the impacts of high tariffs, elevated interest rates, and slowing consumer spending, the decline in foreign tourism and product boycotts is emerging as another headwind threatening the country’s near-term growth outlook.

In addition to tourism, American brands are facing weakening sales in certain overseas markets amid increasing resistance to US products, particularly in parts of Asia and Europe.

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3. Bill Ackman Donates $250,000 to Pro-Cuomo Super PAC

Billionaire hedge fund manager Bill Ackman has donated $250,000 to a super PAC backing former New York Governor Andrew Cuomo in the 2025 New York City mayoral election.

Ackman’s contribution to the pro-Cuomo group, “Fix the City, Inc.”, was disclosed in recent campaign filings and brings the group’s total fundraising to more than $4.9 million in just six weeks.

Other recent major donors include Walmart heiress and philanthropist Alice Walton, who contributed $100,000; media magnate Barry Diller, with $250,000; and fashion designer Michael Kors, who gave $100,000.

Ackman, long known as a Democratic donor, has in recent years emerged as a vocal supporter of Republican President Donald Trump — aligning with him on foreign policy, tariffs, and efforts to combat antisemitism.

Earlier this year, Ackman hosted a fundraiser for another NYC mayoral candidate, Whitney Tilson, a former hedge fund manager and member of the advisory board of Ackman’s Pershing Square Foundation.

“We don’t want NYC to become San Francisco or, G-d forbid, Los Angeles, and Whitney can help save us,” Ackman wrote in a post on X (formerly Twitter) at the time.

Analysts say Cuomo’s comeback, coupled with rising financial support from Wall Street elites, is adding new complexity to the dynamics of the 2025 New York City mayoral race.

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4. Hermès Surpasses LVMH in Market Value

French luxury powerhouse Hermès International SCA has overtaken rival LVMH Moët Hennessy Louis Vuitton SE in market capitalization, marking a historic milestone in the luxury sector and making it the most valuable company on France’s CAC40 stock index.

On Tuesday, Hermès’s market valuation reached €243.65 billion ($276.3 billion), briefly surpassing LVMH’s €243.44 billion. This leap positioned Hermès as the third-largest listed company in Europe, trailing only software giant SAP SE and weight-loss drug maker Novo Nordisk A/S.

The dramatic reversal in fortunes comes 15 years after LVMH’s stealth attempt to take control of Hermès through covert share acquisitions — a move that shocked France’s corporate world but ultimately failed.

This latest milestone was fueled by a sharp selloff in LVMH shares, which fell as much as 8.4% in Paris trading after the company posted disappointing first-quarter results. The slowdown in consumer demand in both China and the US, coupled with concerns over an escalating trade war, have weighed heavily on LVMH’s outlook.

Investors have increasingly favored Hermès for its strong brand equity, limited supply strategy, and luxury exclusivity, viewing it as more resilient in uncertain global economic conditions.

Analysts noted that Hermès’s disciplined approach — characterized by scarcity, premium pricing, and tight family control — is earning fresh valuation premiums in capital markets, potentially reshaping the competitive landscape of the global luxury industry.

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5. New York State Factory Activity Contracts Again in April

New York, April 16 (Xinhua News Agency) — New York state factory activity contracted for a second consecutive month in April, while a gauge of the near-term outlook for business conditions plunged to its lowest level since 2001 amid mounting concerns over the Trump administration’s sweeping tariffs plan.

According to data released Tuesday by the Federal Reserve Bank of New York, the general business conditions index rose 11.9 points to minus 8.1 in April. While that’s an improvement from the prior month, readings below zero still indicate contraction. Economists surveyed by Bloomberg had forecast a reading of minus 13.5.

More strikingly, the index of expectations for business conditions over the next six months plummeted more than 20 points to minus 7.4 — the second-lowest level on record — as manufacturers braced for shrinking orders and shipments.

Measures of future orders and shipments both dropped to their lowest levels in data going back to 2001, highlighting deepening pessimism among manufacturers about the business environment.

Adding to inflationary pressures, the index of current prices paid for materials surged nearly 6 points to 50.8 — the highest since August 2022 — while the gauge of prices received by manufacturers also climbed to a more than two-year high. These figures, combined with rising price expectations, indicate that higher tariffs are feeding through to production costs.

Analysts warned that the Trump administration’s tariff policy is exerting multiple pressures on US manufacturers — from denting business confidence to driving up input costs — with broader implications for economic growth and the labor market.

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6. RMB Hits Record Low After PBOC Loosens Grip

The offshore yuan reached its lowest level ever recorded, amid signs that China is loosening its strict control over the currency. This shift comes as tensions escalate in the ongoing trade war with the United States.

In recent trading sessions in New York, the offshore yuan dropped by 0.5% to a record low of 7.3848 per dollar. Earlier the same day, the People’s Bank of China (PBOC) set the yuan’s daily reference rate at 7.2038 per dollar, marking the weakest level since September 2023. This move breached the 7.20 threshold, which investors often view as an unofficial indicator of China’s currency policy intentions. Similarly, the onshore yuan also fell to its weakest since September 2023.

Analysts, including Aroop Chatterjee from Wells Fargo in New York, believe that this depreciation is likely to continue and even accelerate. The PBOC’s actions suggest a shift towards allowing more flexibility in how the yuan’s value is determined. Chatterjee predicts that this managed depreciation could see the offshore yuan weakening to 7.50 per dollar or even further.

Such a trend indicates a strategic adjustment in China’s approach to managing its currency amidst heightened economic pressures from international conflicts and trade disagreements.

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7. US Stocks Tank Amid Tariffs

U.S. stocks faced a downturn on Friday afternoon, closing in negative territory as the automotive and Chinese sectors led the fall. This decline was primarily driven by an announcement from the White House confirming President Donald Trump’s intention to proceed with significant tariffs on imports from Mexico, Canada, and China starting Saturday.

Specifically, Trump’s administration plans to impose a 25% tariff on goods from Mexico and Canada, and a 10% tariff on Chinese imports. This news negatively impacted investor sentiment, particularly affecting a UBS Group AG basket of stocks deemed at risk from these tariffs, which plunged by 3.7%. Additionally, despite an initial gain, the S&P 500 Index ended the day down by 0.5%.

The financial markets reacted swiftly, with the Bloomberg Dollar Spot Index reaching a session high, indicating a flight to safety among investors. Meanwhile, the Cboe Volatility Index (VIX), often referred to as the “fear gauge,” increased to just over 16, reflecting growing uncertainty and risk aversion among traders.

The ongoing threat of tariffs has been a significant concern for U.S. equity markets since Trump’s election victory in November. Analysts and strategists have cautioned that such high levies could spark inflationary pressures, potentially leading to broader economic disruptions and negatively impacting stock valuations.

Given this backdrop, sectors such as automotive, technology, and manufacturing, which have substantial exposure to international trade, are particularly vulnerable to the effects of prolonged trade wars and the imposition of tariffs.

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