10 things you need to know in markets today


Good morning! Here's what you need to know in markets on Thursday.
1. Billionaire investor Warren Buffett and JPMorgan CEO Jamie Dimon voiced concerns that the financial markets' focus on short-term goals is hurting the economy and urged companies to move away from providing quarterly earnings guidance, according to the Wall Street Journal. "In our experience, quarterly earnings guidance often leads to an unhealthy focus on short-term profits at the expense of long-term strategy, growth and sustainability," they wrote.
2. The European Union and Mexico struck back President Donald Trump's trade threats, and the two countries appear to be trying to send a message with their retaliation. Both the EU and Mexico announced retaliatory tariffs on US goods in response to Trump's decision to impose steel and aluminum tariffs on imports from the two key allies. The moves follow a similar announcement from Canada.
3. Meanwhile, China's Commerce Ministry said on Thursday that the country does not want an escalation of trade friction with the United States, and that some specific progress was made in talks that concluded over the weekend. Ministry spokesman Gao Feng made the comments at a weekly briefing.
4. Stocks rose on Wednesday, with the Dow Jones industrial average cracking 25,000 for the first time since late May. The euro hit a two-week high against the dollar. US Treasury yields rose, holding just below 3%.


5. Swiss bank UBS is cutting jobs at its asset management unit while it focuses on growth in China along with passive and sustainable investing, Bloomberg said on Wednesday. The smallest of UBS's operating divisions is said to have cut at least 100 positions over recent months, Bloomberg said, citing sources, in areas including distribution.
6. The US trade deficit hit a seven-month low in April. Record-high exports and a slight fall in imports shrunk the gap by 2.1%, the Commerce Department said, to $46.2 billion.
7. The Chinese yuan is currently deemed to be the most overvalued currency worldwide, according to modeling from Deutsche Bank. Deutsche says its Cap-PPP currency valuation model has "significant predictive power for FX, both in terms of directional accuracy and the magnitude of moves, especially over longer-term horizons."
8. China is the world's largest trader and is part of almost every supply and value chain. But a team of Macquarie Research analysts led by Viktor Shvets argue in a recent research note that China's trade importance is "overstated" and "distorted." Shvets says the trade balance used to be more relevant. But now, in an era of multinationals and fragmentation of global supply value chains, he says it can be misleading. 
9. A Swiss referendum to overhaul the country's financial system misunderstands how banks fail and won't make them safer, according to a leading academic. Martin Brown, a professor of banking at the University of St. Gallen, said: "Most academic economists are very sceptical, not just about this vote, but about the whole campaign for monetary reform which goes in the direction of sovereign money."
10. Billionaire investor Carl Icahn has acquired a small stake in Allergan Plc at a time when the drugmaker is under pressure from other activist shareholders, people familiar with the matter said on Wednesday. Icahn's intentions are not clear, though he has been a longtime supporter of Allergan Chief



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