CNBC Daily Open: Trump’s ‘America First’ might leave the U.S. behind

U.S. President Donald Trump’s “America First” ideology, which, generally speaking, prioritizes the domestic over the international, rests on the assumption that the world needs America more than it needs the world.

This may be true for the status quo. The U.S. is the world’s largest importer and among the biggest exporters, according to the World Integrated Trade Solution, a database provided by the World Trade Organization.

But change is afoot. Countries are finding ways to respond to Trump’s nationalistic gestures.

Southeast Asian nations, which suffered the brunt of Trump tariffs, are banding together to increase intra-regional trade and diversify their export destinations. China, after assessing the severity of Trump’s threats, seems to ready to strengthen its fiscal stimulus.

It’s not like the U.S. has a monopoly over all aspects of international affairs, either. China controls much of the supply chain of rare earth elements as well as critical minerals like nickel and copper. Trump’s green light to deep-sea mining of those elements is a sign the U.S. is playing catch-up with China.

An “America First” policy may backfire as it drives other countries to take measures that could leave the U.S. behind.

Winning week for stocks
Major U.S. indexes climbed Friday, concluding the week in the green. The S&P 500 rose 0.74% Friday to mark its first four-day winning streak since January. The Nasdaq Composite advanced 1.26% and the Dow Jones Industrial Average inched up 0.05%. However, stock futures edged lower Sunday evening local time. Europe’s regional Stoxx 600 index added 0.35% Friday, its fourth consecutive daily gain. The U.K.’s FTSE 100 closed 0.1% up for its 10th straight positive session, extending its longest winning run since 2019.

China calls for more economic support
China plans to help struggling businesses with “multiple measures” and called for “timely reductions” of interest rates in the face of “increased external shocks,” according to a readout of a Politburo meeting chaired Friday by President Xi Jinping, translated by CNBC. The meeting of the Politburo, the second most powerful political body in China, comes as the trade war between the U.S. and China heats up.

Trump signs order to boost deep-sea mining
U.S. President Donald Trump signed on Thursday a sweeping executive order to jump-start the controversial practice of deep-sea mining, which uses heavy machinery to remove minerals and metals from the seabed. The move attempts to shore up America’s access to strategically important minerals such as nickel, copper and rare earth elements, offsetting China’s dominant position in critical mineral supply chains.

Southeast Asian countries turn to each other
Export-oriented Asian countries were hit hard by Trump’s “reciprocal” tariffs and the ensuing U.S.-China trade war. China is among the biggest trade partners for those countries, while the U.S. serves as their strategic partner in areas like defense and development. Instead of picking a side, however, the region’s nations are developing their own economies and strengthening trade ties with each other.

[PRO] Eyes on earnings and data
More than 180 companies in the S&P 500 report their results this week, making it the busiest period of the first-quarter earnings season, notes CNBC’s Sarah Min. Companies to look out for include Meta Platforms, Microsoft, Amazon and Apple. Investors should also watch the personal consumption expenditures price index, out Wednesday, and nonfarm payrolls, out Friday.

Inflation job nearly done but tariff risks loom — what European Central Bank members said this week

European Central Bank policymakers whom CNBC spoke to at the World Bank and International Monetary Fund’s Spring Meetings this week broadly stuck a dovish tone, indicating they saw interest rates continuing to fall and few upside risks to euro zone inflation.

Christine Lagarde, European Central Bank president, said that the “disinflationary process is so much on track that we are nearing completion.”

However, all stressed the current high levels of uncertainty, the need to keep monitoring data, and the high risks to the growth outlook. Lagarde, for instance, cautioned that the world economy is experiencing “shocks” that will be “a dampen on GDP.”

Echoing her sentiment, Klaas Knot, president of The Netherlands Bank, said “the uncertainty that is created by the unpredictability of the tariff actions by the U.S. government works as a strong negative factor for growth.”