Crypto News: Supply Lines: Messing with Texas

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Tariff uncertainty is creeping into an otherwise optimistic outlook for Texas manufacturers in 2025, according to the latest survey from the Federal Reserve Bank of Dallas.

The Dallas Fed's monthly poll results include commentary from unidentified respondents, and as Bloomberg's latest Odd Lots newsletter points out, there was some improvement in optimism month-over-month. (Click here to sign up for the daily Odd Lots newsletter.)

Here's what some manufacturers said in Monday's report during a survey period that followed President-elect Donald Trump's threats to impose tariffs on some of the US's biggest trading partners:

Plastics and rubber maker: "Tariffs are a concern. Particularly the ones on goods from Mexico are the biggest existential threat to this business in its 70 years."
Computers and electronics: "Widespread tariff risks are causing significant change in our business and a potential loss of orders."
Food producer: "Talk of tariffs on imported materials and ingredients is a big uncertainty generator for our operations."
General manufacturer: "Things are looking good for domestic business, but we are concerned about international trade and supply disruption with geopolitical conflict and trade concerns."

Big Take: Trump's Tariff Threats Set Off a Global Supply Chain 'Freakout'

Such worries extend beyond Texas. Canadians are less optimistic about their economy because of Trump's tariff threats, with the Bloomberg Nanos Canadian Confidence Index reaching its lowest level since November 2023.

In Europe, European Central Bank Governing Council member Klaas Knot said he's concerned China may start selling its products to Europe at discounted rates if the US starts a trade war by imposing new tariffs.

Big Take: Germany's Economy Is Unraveling Just as Europe Needs It Most

In such a situation, "there is a chance that the Chinese will start offering their goods in Europe at lower and lower prices," Knot said in an interview published in Dutch newspaper Volkskrant on Monday.

"We are already seeing that happening in the steel market," he said. "In this way, China is, as it were, exporting its deflation to us."

Related Reading:

—Brendan Murray in London

Click here for more of Bloomberg.com's most-read stories about trade, supply chains and shipping.

Charted Territory

Slow LNG Growth | Global liquefied natural gas exports grew at the slowest pace since 2015, threatening to keep prices elevated until new supply comes online. Delays to US projects and sanctions against Russia's newest facility curbed new supply into the market. The LNG market has been finely balanced since the 2022 invasion of Ukraine cut Russian pipeline gas to Europe, forcing the continent to depend more on the super-chilled fuel. The lack of new exports has made the market susceptible to price spikes for buyers in Europe and Asia.

Today's Must Reads

The US Treasury Department was hacked by a Chinese state-sponsored actor through a third-party software service provider, according to a letter the agency sent to Congress on Monday.
South Africa's state-owned rail and ports operator reported a wider first-half loss as failing infrastructure and security issues continue to hamper progress in turning the business around.
China's gross domestic product is expected to expand around 5% for the full year of 2024, President Xi Jinping said, signaling the world's second-largest economy is on track to meet its official target.
Indonesian consumers, fuel retailers and palm oil producers are facing higher costs from the government's plan to expand its biofuel program after the price of the tropical oil surged.
Russian President Vladimir Putin has given a local company control of Anheuser-Busch InBev's joint venture, upending the brewer's plans to exit the country via a deal with a Turkish partner.

On the Bloomberg Terminal

China's December official PMI reading — marking the third straight month of expansion in factory activity — suggests Beijing's stimulus program might have started to pay off, Bloomberg Intelligence says.
South Korea's export expansion will likely accelerate in December on an increase in computer-chip shipments to China. Chipmakers appear to be increasing shipments of high-bandwidth memory chips to China before new US restrictions on the sale of high-tech memory chips to China kick in from January 2025.
Run SPLC after an equity ticker on Bloomberg to show critical data about a company's suppliers, customers and peers.
Use the AHOY function to track global commodities trade flows.
See DSET CHOKE for a dataset to monitor shipping chokepoints.
For freight dashboards, see {BI RAIL}, {BI TRCK} and {BI SHIP} and {BI 3PLS}
Click HERE for automated stories about supply chains.
On the Bloomberg Terminal, type NH FWV for FreightWaves content.
See BNEF for BloombergNEF's analysis of clean energy, advanced transport, digital industry, innovative materials, and commodities.

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