Trump announces 100% tariff on foreign films

US President Donald Trump has announced an unprecedented 100% tariff on any movies made outside the United States, aiming to strengthen domestic film production and remedy the shift of Hollywood projects overseas. The announcement, issued on his Truth Social account, is part of a broader protectionist strategy that also includes threats of tariffs on imported furniture to revive industries in places like California and North Carolina.

The Trump Organization is expanding its footprint in the Gulf through a major USD 1bn mixed-use Trump Plaza project in Jeddah, Saudi Arabia, in partnership with Dar Global. This new development, set in the city’s “Manhattan District,” aligns with Saudi Vision 2030, which seeks to diversify the economy and attract global investment. Construction will begin in late 2025 for completion by 2029.

Electronic Arts (EA) is being acquired by a Saudi Arabia-led consortium for USD 55bn marking the largest leveraged buyout ever. The deal, involving Saudi Arabia’s Public Investment Fund, Silver Lake, and Affinity Partners, will take EA private and is expected to reshape the gaming sector and strengthen the Kingdom’s influence in tech and entertainment industries.

Today’s Economic Data and Events

18:00 US JOLTS Job Openings. Aug Forecast: 7.17m

Fixed Income

US Treasury yields fell on Monday. The 2yr UST declined 2bps to 3.6205% while the 10yr yield UST fell 3bps to 4.1387%.

Kuwait mandated banks for a multi-tranche bond USD benchmark 3yr, 5yr, and 10yr.

Egypt mandated banks for dual-tranche sukuk offering USD benchmark 3yr and 7yr.

FX

The US dollar weakened on Monday, with the DXY index declining 0.25% to close at 97.906. EURUSD gained 0.21% to 1.1727 while GBPUSD rose 0.20% to 1.3430. USDJPY declined 0.47% to 148.60.

Equities

On Monday, all three major U.S. stock indexes closed higher, recovering from last week’s losses. The Dow Jones Industrial Average rose 0.15%, the S&P 500 gained 0.26%, and the NASDAQ Composite climbed 0.48.

Locally, DFM closed up 0.2% while ADX closed down 0.1%. Saudi Arabia’s Tadawul closed up 1.8%.

Commodities

Brent crude and WTI closed down 3% at USD 67.97/b and USD 63.45/b.

Gold extended its gains, rising 1.96% to close at USD 3834/troy oz, as investors continued to seek safe-haven assets amid persistent US government shutdown concerns and a weakening dollar.