India Strikes Pakistan, Houthis to end Red Sea Strikes, Asia’s Hardline Response to Trump Tariffs

Andrew Sheves Good morning.

💥 India Strikes Pakistan

India launched targeted strikes against alleged “terrorist infrastructure” in Pakistan and Pakistan-administered Kashmir following a deadly April 22 attack that killed 26 people in Indian-administered Kashmir. Pakistan denies involvement and claims 26 civilians were killed in the strikes, while threatening retaliation against what Prime Minister Sharif called a “heinous act of aggression.” UN chief Guterres has called for “maximum restraint” as tensions escalate between the nuclear-armed neighbors. More - BBC

Note - This is a fast-moving situation and this BBC Live Tracker is monitoring events in reeal time.

🇾🇪** US-Houthi Ceasefire: Red Sea Attacks to End**

The US and Yemen’s Houthis agreed to an Oman-mediated ceasefire deal halting mutual attacks, with Trump announcing the Houthis have “capitulated” on targeting Red Sea vessels. Houthi negotiator Mohammed Abdulsalam clarified the agreement excludes operations against Israel “in any way, shape or form,” as the group vowed to continue targeting Israel amid recent Israeli strikes on Sanaa airport. The truce follows months of US airstrikes responding to Houthi shipping attacks conducted in solidarity with Palestinians. More - Al Jazeera

🚢** Asia’s Hardline Response to US Tariffs**

Three recent stories paint an interesting picture of how difficult some of the tariff deals the US plans to make could be and how other nations are realigning their trade relationships, but not in the way President Trump had hoped.

US-China Talks Start this Week - Despite statements from the White House that talks with China were ongoing, US-China trade talks are not due to start until this week. China has been in no rush to begin these talks and it is unclear just how long it will take for any kind of a deal to emerge. More - Bloomberg (Bloomberg also just reported that President Xi has announced a series of measures to strengthen the Chinese economy before talks, further signalling that Beijing is taking a hard stance to these talks and feels it is in the stronger position- Bloomberg)

Signs of Dollar Exodus in Asia - Asian countries may unload $2.5 trillion in dollar assets as Trump’s trade policies trigger currency rebalancing. Stephen Jen of Eurizon SLJ Capital warns of “naked long-dollar positions” becoming vulnerable amid Asian currency strengthening, with the Bloomberg dollar gauge already down 8%

Carpe tomorrow!