Stock markets were mixed on Monday as traders geared up for an expected interest rate cut by the US Federal Reserve this week.Equities have enjoyed a strong run-up over recent weeks as a string of data on jobs and inflation are seen as having provided the US central bank with enough leeway to resume its rate reductions.Wednesday’s policy decision follows figures showing the labour market continuing to soften, while prices have not spiked as much as feared in the wake of US President Donald Trump’s tariff war.The keenly awaited meeting is expected to see the Fed lower borrowing costs 25 basis points, although some observers predict it could go to 50 points.”There’s a wait and see mood at the start of the week as investors eye key central bank meetings and assess the potential path of interest rate cuts,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.The central banks of Canada, Britain and Japan are due to meet this week.Paris and Frankfurt stock markets advanced in midday trading on Monday, while London was flat.Asia fluctuated after a tepid Friday on Wall Street that saw the Nasdaq inch up to a new peak.Shanghai edged down after data showed further weakness in China’s economy, with growth in retail sales and industrial production much slower than forecast.Seoul hit another record after South Korean officials scrapped a plan to lower the capital gains tax threshold for stock investors.Hong Kong advanced, while Tokyo was closed for a holiday.Also in view are talks between China and the United States in Madrid that will cover a range of issues including trade, with an eye on a November deadline for their tariff pause.US Treasury Secretary Scott Bessent said Monday the United States is “very close” to a deal with China to settle their dispute over TikTok. The meetings are expected to continue through Wednesday — the deadline for TikTok to find a buyer or face a ban.The negotiations come after China launched two investigations into the US semiconductor sector on Saturday.In company news, Hong Kong-listed Pop Mart, which makes the global smash Labubu dolls, tanked more than six percent, wiping billions off its valuation, after JP Morgan downgraded it saying it was overpriced.The firm is up around 180 percent this year but is down more than a fifth from its August record owing to signs demand for the dolls is waning.And in Sydney, ANZ bank, one of Australia’s “big four” lenders, retreated following news it had agreed to pay a record fine of Aus$240 million (US$159.5 million) over “widespread misconduct”.- Key figures at around 1050 GMT -London – FTSE 100: FLAT at 9,284.41 pointsParis – CAC 40: UP 1.1 percent at 7,914.17Frankfurt – DAX: UP 0.4 percent at 23,792.03Tokyo – Nikkei 225: Closed for a holidayHong Kong – Hang Seng Index: UP 0.2 percent at 26,446.56 (close)Shanghai – Composite: DOWN 0.3 percent at 3,860.50 (close)New York – Dow: DOWN 0.6 percent at 45,834.22 points (close)Euro/dollar: UP at $1.1756 from $1.1731 on FridayPound/dollar: UP at $1.3606 from $1.3560Dollar/yen: DOWN at 147.35 from 147.67 yenEuro/pound: DOWN at 86.40 pence from 86.52 penceWest Texas Intermediate: UP 0.2 percent at $62.82 per barrelBrent North Sea Crude: UP 0.1 percent at $67.09 per barrel

The World Trade Organization’s agreement on fisheries subsidies — its first environmentally focused accord — entered into force on Monday after years of thorny negotiations at a time of heightened international trade tensions.Agreed by more than 100 WTO members, including the United States, the European Union and China, the agreement sets binding rules requiring governments to consider the legality and sustainability of the fishing activities they subsidise.”This is the first sustainability agreement of the WTO… It’s a big day,” WTO chief Ngozi Okonjo-Iweala told AFP.Speaking to diplomats during Monday’s ceremony, she described the event as a “historic milestone”.”It seems like a dream,” she said. “We have been waiting a long time for today to happen.” The discussions towards the deal began all the way back in 2001, with WTO members finally reaching an agreement by consensus in June 2022.Below are the main points of the agreement, which was celebrated with a ceremony at the WTO’s Geneva headquarters Monday after being ratified by two-thirds of the membership.Broader rules regarding subsidies for activities that contribute to overcapacity and overfishing remain under negotiation.- Bans -“Each year, governments spend an estimated $22 billion in harmful subsidies that contribute to overfishing and the depletion of marine resources,” Okonjo-Iweala said.The deal bans subsidies to any vessel or operator engaged in illegal, unreported and unregulated (IUU) fishing, or the fishing of overexploited stocks.However, a country can grant or maintain subsidies implemented “to rebuild the stock to a biologically sustainable level”.According to the United Nations, IUU fishing is responsible for depleting between 11 million and 26 million tonnes of fish each year, which “represents 20 percent of the global fish catch”, the WTO chief said.The agreement also prohibits subsidies for unregulated fishing on the high seas, including areas outside the jurisdiction of coastal countries.The agreement “is a significant step forward for the ocean and the coastal communities that depend on it,” said Megan Jungwiwattanaporn, with the Pew Charitable Trusts.- Notification and dispute settlement -The agreement says countries must “take special care and exercise due restraint” when granting subsidies to vessels not flying their own flag, and when granting them to fishing or related activities if the status of the stocks concerned is unknown.Besides regular notifications of subsidies, WTO members are required to update the organisation on how the agreement is being implemented.This includes the status of fish stocks, information on vessels receiving subsidies, and a list of vessels and operators that the country has determined to be engaged in IUU fishing.In the event of disagreements, countries can refer matters to the WTO’s dispute settlement body.- Developing countries -The agreement provides a “peace clause” to the world’s least-developed countries (LDCs) and developing countries, exempting them from subsidy bans within their own exclusive economic zones for two years.Furthermore, developing countries and LDCs whose annual share of the global fish catch does not exceed 0.8 percent can submit their fisheries notifications to the WTO every four years instead of every two years.They will also benefit from technical assistance, and the WTO has set up a special fund to support them, which to date has received $18 million in voluntary contributions.- Agreement could be thrown overboard -The agreement alone “won’t stop the billions in subsidies that fuel overfishing and overcapacity”, warned Rashid Sumaila, a member of NGO Oceana’s board and head of Fisheries Economics Research Unit at the University of British Columbia.And if the second agreement outlining comprehensive rules on overcapacity and overfishing is not adopted within four years, the first agreement will be “immediately terminated”, unless WTO members decide otherwise.

The United States is “very close” to a deal with China to settle their dispute over TikTok, US Treasury Secretary Scott Bessent said Monday as the two sides resumed trade talks in Madrid.Bessent and Chinese Vice Premier He Lifeng opened the latest round of discussions in Madrid on Sunday, seeking to narrow differences on trade and technology that have strained relations between the world’s two largest economies.The meetings are expected to continue through Wednesday — the deadline for TikTok to find a buyer or face a ban.”On the TikTok deal itself, we’re very close to resolving the issue,” Bessent told reporters as he arrived at Spain’s foreign ministry for a second day of talks. “If we don’t reach an agreement on TikTok, it doesn’t affect the overall relationship between the two countries. It’s still very good at the highest levels,” he added.TikTok is owned by China-based internet company ByteDance.A federal law requiring TikTok’s sale or ban on national security grounds was due to take effect the day before US President Donald Trump’s inauguration on January 20. But the Republican, whose 2024 election campaign relied heavily on social media and who has said he is fond of TikTok, put the ban on pause. – Shaky truce -In mid-June Trump extended a deadline for the popular video-sharing app by another 90 days to find a non-Chinese buyer or be banned in the United States. That extension is due to expire on Wednesday.While Trump had long supported a ban or divestment, he reversed his position and vowed to defend the platform — which boasts almost two billion global users — after coming to believe it helped him win young voters’ support in the November election.Beijing’s commerce ministry called on Washington on Friday to “work with China on the basis of mutual respect and equal consultations, to resolve each other’s concerns through dialogue and find a solution to the problem”.The talks in Madrid also cover Trump’s threat of steep tariffs on Chinese imports.Trade tensions escalated sharply earlier this year, with tit-for-tat tariffs reaching triple digits and snarling supply chains.Both governments later agreed to lower their punitive tariffs, with the United States imposing 30 percent duties on imports of Chinese goods and China hitting US products with a 10 percent levy, but the temporary truce expires in November.The US-China trade truce has been an uneasy one, with Washington accusing Beijing of violating their agreement and slow-walking export license approvals for rare earths.China is the world’s leading producer of rare earths, used to make magnets essential to the automotive, electronics and defence industries.- Nvidia probe -China on Saturday launched two investigations into the US semiconductor sector. Beijing opened an anti-dumping probe into some IC chips originating from the United States, its commerce ministry said in a statement. The ministry also said in a separate statement it will launch an investigation into whether the United States had discriminated against the Chinese chip sector.And on Monday China said an investigation found US chip giant Nvidia had run afoul of the country’s antitrust rules, and vowed an additional probe.The statement did not provide further details about Nvidia’s alleged legal violations or the further probe.Beijing — which announced the investigation in December — is currently engaged in an intense contest with the United States for supremacy in the critical field of semiconductors.Top diplomats and defence chiefs from both nations held back-to-back phone calls last week, which analysts said could mark a step towards a meeting between Trump and Chinese leader Xi Jinping.Trump said in August he expects to visit China this year or shortly afterwards, noting that economic ties between the two countries have improved.