Gold Soars to Record High; Porsche Sales Plummet in China
Key Takeaways
- Gold prices hit a record high of nearly $3,350 per ounce on April 17, 2025.
- Porsche's China sales dropped 42% in early April; stock lost nearly two-thirds since 2023 peak.
- The Fed might hold rates longer due to inflation, but cuts are still possible later this year.
- The MSCI Emerging Markets Index increased, resulting in a weekly gain of 2.2%.
- S&P upgraded Greece’s credit rating for the third time in just over a month.
Top Stories
Gold hits record high: nearly $3,350 per ounce
On April 17, 2025, gold prices surged to a record high of almost $3,350 per ounce, marking a more than 25% increase since January due to strong demand.
Porsche sales drop 42% in China; stock declines
On April 17, 2025, Porsche reported a 42% drop in sales in China for early April, with only 9,500 models sold in the first three months of the year. Porsche's stock has lost nearly two-thirds of its value since its peak in the summer of 2023.
Fed may hold rates longer, but cuts possible
On April 18, 2025, Federal Reserve Bank of San Francisco President Mary Daly indicated that the US central bank might hold interest rates longer than anticipated due to inflation risks, but rate cuts are still possible later this year.
Emerging markets surge; best week since March
On April 18, 2025, reports indicated that the MSCI Emerging Markets Index increased, resulting in a weekly gain of 2.2%. Currencies of commodity-linked countries outperformed, pushing the benchmark near a six-month high, driven by optimism about China’s economy and US tariff reprieves.
S&P upgrades Greece's credit rating again
On April 18, 2025, S&P Global Ratings upgraded Greece’s credit rating for the third time in just over a month, citing the country’s economic turnaround and improved debt outlook. Greece's GDP advanced by 2.3% in 2024, outpacing much of the euro zone since the pandemic.
Economic Trends
Li Qiang urges stock market, real estate stabilization
On April 18, 2025, Chinese Premier Li Qiang urged government officials to enhance efforts to stabilize the stock market and nurture the real estate market amidst heightened trade tensions with the US. He also called for strengthening China’s counter-cyclical measures in response to a complex external environment.
UK won't raise wealth taxes, prioritizes growth
On April 19, 2025, UK Chancellor of the Exchequer Rachel Reeves pledged no increases to UK wealth taxes in the upcoming budget, prioritizing economic growth to improve the financial situation for working people.
Italy's credit rating confirmed at BBB with positive trend
On April 18, 2025, Morningstar DBRS confirmed Italy's credit rating at BBB with a positive trend, as Premier Giorgia Meloni's government reduces the deficit, aiming to bring it below the 3% ceiling set by the European Union by next year.
Electric car costs reverse price decrease trend
On April 19, 2025, economist David Le Bris argued that the rising cost of electric cars is reversing a 20th-century trend of decreasing car prices, making them a luxury item. The article references Renault and Peugeot models from the 1920s, 1930s, and 1939 and discusses the implications of the planned 2035 ban on internal combustion engine cars.
Trump's tariffs echo 19th-century protectionism
On April 19, 2025, historian Eric Anceau argued that Jules Méline, who implemented protectionist tariffs in France at the end of the 19th century, is a French precursor to Donald Trump. Trump's recent increases in customs duties have caused incomprehension and panic. Jules Méline (1838-1925) served as Minister of Agriculture and proposed re-establishing high customs duties to protect national production; a colloquium will commemorate his death.
Market Insights
Trump criticizes Powell; Warren warns on Fed chief
On April 18, 2025, President Donald Trump criticized Federal Reserve Chair Jerome Powell, advocating for lower interest rates. Senator Elizabeth Warren warned that firing the Fed chief would be dire for U.S. financial markets.
Italy approves UniCredit's Banco BPM takeover
On April 18, 2025, the Italian government approved UniCredit SpA's takeover bid for Banco BPM SpA, subject to certain conditions, to protect strategic interests and national security. The government's statement did not specify the conditions imposed on the €13 billion ($14.8 billion) acquisition.
Infrastructure Developments
Kenya scraps road program due to cost concerns
On April 18, 2025, Kenya scrapped a program to build 10,000 kilometers of roads financed by commercial bank loans due to cost concerns. The country will now fund these mostly rural road projects via budget financing, according to Roads principal secretary Joseph Mbugua.
SNCF renews Paris-Clermont-Ferrand railway tracks
On April 16, 2025, SNCF Réseau began renewing railway tracks between Paris and Clermont-Ferrand, involving a 106 million Euro investment and approximately 450 workers each night. On April 15, 2025, a delegation met with the Minister of Transport, Philippe Tabarot, to discuss issues with the railway lines.
Belgian railcar contract overturned; Alstom favored
On April 17, 2025, the Francophone chamber of the Belgian Council of State overturned the Belgian national railway company (SNCB)'s decision to award a railcar contract worth an estimated 3.4 to 4.6 billion euros to Spanish manufacturer CAF, favoring Alstom. Alstom's bid was 107 million euros lower than CAF's.
Media & Funding
BBC World Service seeks more government funding
On April 18, 2025, Jonathan Munro, director of BBC World Service, urged the British government to release additional funding for the financially struggling media outlet.