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TikTok abounds with viral videos accusing prestigious brands of secretly manufacturing luxury goods in China so they can be sold at cut prices.But while these “revelations” are spurious, behind them lurks a well-oiled machine for selling counterfeit goods that is making the most of the confusion surrounding trade tariffs.Chinese content creators who portray themselves as workers or subcontractors in the luxury goods business claim that Beijing has lifted confidentiality clauses on local subcontractors as a way to respond to the huge hike in customs duties imposed on China by US President Donald Trump.They say this Chinese decision, of which AFP has found no trace, authorises them to reveal the hidden underbelly of luxury goods manufacturing in China.They encourage Western consumers to buy directly from the websites selling these goods, which bear no logos or labels but are said to be of the same quality and design as the expensive originals.The prices are alluring too, dropping from $38,000 for a luxury bag to $1,400.Brands targeted — which include Hermes, Chanel and Louis Vuitton, whose goods are produced in Europe and the United States according to their websites — declined to respond to AFP questions about the claims made in these viral videos.But for Jacques Carles, head of the French Luxury and Design Centre, a management consultancy, the notion that luxury brands would manufacture goods in China is simply “absurd”.”It would be suicidal. If there was evidence — and there isn’t — it would be the end. These brands aren’t stupid,” he told AFP.While the TikTokers point to the skill of the Chinese workers, presented as the little hands behind the big luxury names, “these counterfeit workshops absolutely do not respect all the required stages in the manufacturing process”, he said.- ‘Creating doubt’ -Carles cited the example of Hermes’s Birkin bag, which requires “hundreds of hours of work” to produce.He said the internet clip makers were, “by creating doubt”, actually looking to “open up an opportunity… to shift their stocks” of counterfeit goods.”It’s a viral campaign that’s spread on social networks (and) is difficult to counter,” he said.Luxury brands chose to remain silent and “treat the phenomenon with scorn”, which was a mistake in his view, he added.The accusation that luxury goods officially manufactured in Europe were in reality being secretly made in China “does not make any sense”, concurred Michel Phan, professor of luxury marketing at emlyon business school in France.He rejected the argument made on TikTok that this was a Chinese retort to US trade tariffs.”Hurting European luxury brands will not change anything (for) the US government because they are not related to those brands,” he said.”All the videos online mentioning that luxury brands manufactured their products in China and then put the ‘Made in France’ label before selling them are nonsense.”It is illegal to do so and no brand will take the risk to get caught (sic) doing it.”The e-commerce department at China’s trade ministry said in a statement: “Any misleading marketing, infringement, or counterfeit activities” by entities posing as subconstractors for established brands “will be promptly referred to law enforcement agencies for investigation and action.”- ‘I’m such a sucker’ -Comments on the viral clips, portrayed as coming from internet users rather than the video creators themselves, seem to show that the message resonates.”I’m so annoyed. I paid top price!” said one in a video comment.”I’m such a sucker,” said another.Some leave comments asking for the names of “suppliers of luxury goods” in China from whom they can buy the coveted items on the cheap.Meanwhile, Chinese vendors are also selling counterfeit luxury goods directly on TikTok, with links to their websites. These TikTok live reels garner hundreds of views each.They show row upon row of shelves full of luxury items, all numbered.”DHL delivery. Products identical to those in stores. The only difference is the price,” says one, using an AI-generated voice in French.Internet users are invited to scan a QR code or click on a link to complete their purchase via WhatsApp or PayPal.AFP has found a score of similar live feeds, released simultaneously in English and French, suggesting that the main targets are internet users in Europe and the United States.China is regularly accused of being the world’s top producer of counterfeit goods.Some estimates suggest 70 to 80 percent of all fakes are manufactured there.In European Union states and a number of other countries there are hefty penalties for purchasing counterfeits.In France, that could mean a three-year prison term and a fine of 300,000 euros ($340,600).Customs authorities may also confiscate counterfeit goods and fine the purchaser the equivalent of the items’ true value.The European Union Intellectual Property Office (EUIPO) says counterfeiting costs European industry 16 billion euros a year, with the clothes, cosmetics and toy sectors being the worst affected.

Asian and European stocks climbed on Friday, buoyed by a rally on Wall Street, strong earnings from Google parent Alphabet, and hopes of diffusing tensions in US President Donald Trump’s trade war.US stocks rallied for a third straight session Thursday, shrugging off signs that US trade deals with China and the European Union aren’t imminent despite promising signs elsewhere.The dollar made solid gains versus main rivals Friday, while oil prices dropped nearly one percent.”Stock markets are riding a wave of hope that US tariffs will be scaled back, and the White House will provide certainty around future economic policy,” said Kathleen Brooks, research director at trading group XTB.European and Asian markets had halted their rally the previous day after Beijing refuted claims of ongoing trade talks with Washington following Trump playing up the prospects of a deal to lower the 145 percent tariffs imposed on most Chinese exports.But reports on Friday that China may exempt some US goods from its hefty retaliatory tariffs helped lift equities out of the red. “While tariffs are unlikely to go away completely, any easing of the trade war will be lapped up by financial markets,” said Russ Mould, investment director at AJ Bell.Brooks added that markets are benefitting also from strong earnings reports. Alphabet posted earnings that exceeded expectations for the recently ended quarter, driven by its cloud computing and artificial intelligence operations. In Europe, Paris and Frankfurt stocks rose in midday deals, as investors brushed off comments from France’s economy minister Eric Lombard that a trade deal between the United States and the European Union was a way off.London’s stock market edged down despite positive UK retail data.Tokyo jumped almost two percent by the close following Japanese media reports that a second round of trade talks in Washington was set for May 1.The discussions will be closely watched as a barometer for efforts by other countries seeking tariff relief.Chinese stock indices ended the week fairly steady, as China’s top leaders urged more support for the economy and opposed “unilateral bullying” in global trade, according to a readout of a meeting published by state media Friday.Seoul jumped one percent after US Treasury Secretary Scott Bessent said a trade “understanding” between South Korea and the United States could be reached by next week.Investors are optimistic also that the US Federal Reserve may cut interest rates sooner than expected.Fed Governor Christopher Waller said during an interview with Bloomberg Television that he would support interest rate cuts if harsh tariffs hurt the jobs market.- Key figures at 1045 GMT -London – FTSE 100: DOWN 0.1 percent at 8,401.30 pointsParis – CAC 40: UP 0.4 percent at 7,532.06Frankfurt – DAX: UP 0.5 percent at 22,169.14Tokyo – Nikkei 225: UP 1.9 percent at 35,705.74 (close)Hong Kong – Hang Seng Index: UP 0.3 percent 21,980.74 (close)Shanghai – Composite: DOWN 0.1 percent at 3,295.06 (close)New York – Dow: UP 1.2 percent at 40,093.40 (close)Euro/dollar: DOWN at $1.1357 from $1.1392 on ThursdayPound/dollar: DOWN at $1.3309 from $1.3339 Dollar/yen: UP at 143.36 from 142.62 yenEuro/pound: FLAT at 85.35 penceWest Texas Intermediate: DOWN 0.9 percent at $62.22 per barrelBrent North Sea Crude: DOWN 0.9 percent at $65.08 per barrelburs-ajb/bcp/rl

China’s top leaders pledged on Friday to step up support for the economy and oppose “unilateral bullying” in global trade in a veiled rebuke of hefty tariffs imposed by US President Donald Trump.The world’s two largest economies are engaged in a high-stakes trade war that has spooked markets and spurred major manufacturers to reconsider supply chains.Leaders at a gathering of the Chinese Communist Party’s top decision-making body focused on economic work, which was attended by President Xi Jinping, acknowledged that “the impact of external shocks is increasing”, state news agency Xinhua reported.They also said they would seek to “work with the international community to actively uphold multilateralism and oppose unilateral bullying practices”, it said.The brutal trade war comes as China’s economy strains under the weight of longstanding woes in the property sector and reluctance by consumers to pull out their wallets.Leaders at the Politburo meeting discussed a range of domestic economic issues, emphasising the need to “enhance the role of consumption in stimulating economic growth”, according to Xinhua.They also called for action to increase incomes and “vigorously develop service consumption”, as well as the implementation of key rate cuts at “appropriate times”.The readout of the meeting “shows the government is ready to launch new policies when the economy is affected by the external shock”, Zhiwei Zhang, President and Chief Economist of Pinpoint Asset Management, wrote in a note.However, Zhang noted “it seems Beijing is not in a rush to launch a large stimulus at this stage”.”It takes time to monitor and evaluate the timing and the size of the trade shock,” he added.Experts say the Chinese economy will need to depend more on domestic consumption in order to sustain growth through coming years.Beijing is targeting annual growth this year of five percent, although economists consider that goal to be ambitious.- ‘Extreme scenario’ -China achieved record exports last year, providing a key source of economic activity as domestic challenges in the property sector and deflationary pressure persisted.But the global trading system is now under great pressure, with Trump having hit most trading partners with 10 percent tariffs since reclaiming office in January.China has received the worst of Trump’s trade blitz, with many of its products now facing a 145 percent tariff. Beijing has responded with new 125 percent tariffs of its own on US goods.There have been competing claims in recent days about potential trade talks that could see an easing of the sky-high tariffs that have unleashed chaos on the global economy.A spokesman for Beijing’s commerce ministry said on Thursday that “there are currently no economic and trade negotiations between China and the United States”.But hours later, asked about the state of negotiations with Beijing, Trump maintained: “We’ve been meeting with China.”Chinese financial news outlet Caijing reported on Friday that Beijing was considering the exemption of certain US semiconductor products from recent additional tariffs, citing sources familiar with the matter.Beijing’s commerce ministry did not immediately respond to an AFP request to confirm the reports.China also said on Friday it was necessary to enhance “extreme scenario thinking” as the trade war deepens.”It is essential to… enhance both bottom-line thinking and extreme scenario thinking, with a strong focus on preventing and defusing trade risks,” a commerce ministry statement said.The Politburo meeting’s emphasis on innovation shows that China is preparing for a “deepening decoupling with the United States”, Yue Su, Principal Economist at the Economist Intelligence Unit, told AFP.The tone of the meeting “reflects growing concern over downside risks, as the government appears increasingly willing to factor potential negative shocks into its policy planning”, Su said.

Asian and European stocks climbed on Friday, buoyed by a rally on Wall Street and the prospect of trade deals progressing between the United States and some of its economic partners.US stocks rallied for a third straight session on Thursday, shrugging off signs that US trade deals with China and the European Union aren’t imminent despite promising signs elsewhere.Beijing said on Thursday any claims of ongoing trade talks with Washington were “groundless” after US President Donald Trump played up the prospects of a deal to lower the 145 percent tariffs he imposed on most Chinese exports.France’s economy minister Eric Lombard said a trade deal between the United States and the European Union was also a way off.However, global markets appear to have brushed aside the lack of progress.”There are mixed signals about whether there have been some talks about trade between the US and China,” said Lloyd Chan, a senior currency analyst at MUFG.”Nonetheless, the trade war and US policy-related uncertainty have persisted. Asian economies still face the risk of higher reciprocal tariffs.”China’s top leaders urged more support for the economy and opposed “unilateral bullying” in global trade, according to a readout of a meeting published by state media on Friday.Tokyo jumped 1.9 percent and Hong Kong was up 0.3 percent, while Shanghai was flat.The Nikkei rise came despite struggling Japanese auto giant Nissan issuing a stark profit warning on Thursday, forecasting a huge loss of up to $5.3 billion in the 2024-25 financial year.The markets see that the company “is moving ahead toward turnaround”, said Bloomberg Intelligence analyst Tatsuo Yoshida, as Nissan shares climbed more than 1.6 percent on Friday. “Booking significant impairment losses and restructuring charges is a necessary step toward Nissan Motor’s turnaround.”Japanese media reported on Thursday that a second round of trade talks in Washington was set for May 1, which will be closely watched as a barometer for efforts by other countries seeking tariff relief.Seoul jumped one percent after US Treasury Secretary Scott Bessent said a trade “understanding” between South Korea and the United States could be reached by next week.Taipei, Wellington, Singapore, Manila, Bangkok and Jakarta also climbed.   Markets were also responding to strong earnings from Google parent Alphabet, which reported on Thursday a profit of $34.5 billion in the recently ended quarter.Overall revenue at Alphabet grew 12 percent to $90.2 billion compared with the same period a year earlier, while revenue for its cloud unit grew 28 percent to $12.3 billion, according to the tech giant.London, Paris and Frankfurt were all up at the open.MUFG’s Chan also pointed to the Federal Reserve possibly cutting interest rates sooner than expected.Fed Governor Christopher Waller said during an interview with Bloomberg Television that he would support interest rate cuts if harsh tariffs hurt the jobs market.”In terms of the latest Fed speak, Fed’s Waller has said he would support rate cuts should there be a significant deterioration in the labour market,” Chan said.- Key figures at 0800 GMT -Tokyo – Nikkei 225: UP 1.9 percent at 35,705.74 (close)Hong Kong – Hang Seng Index: UP 0.3 percent 21,980.74 (close)Shanghai – Composite: DOWN 0.1 percent at 3,295.06 (close)London – FTSE 100: UP 0.1 percent at 8,418.12  Euro/dollar: DOWN at $1.1361 from $1.1392 on ThursdayPound/dollar: DOWN at $1.3302 from $1.3339 Dollar/yen: UP at 143.36 from 142.62 yenEuro/pound: UP at 85.40 from 85.35 penceWest Texas Intermediate: UP 0.29 percent at $62.97 per barrelBrent North Sea Crude: UP 0.17 percent at $66.66 per barrelNew York – Dow: UP 1.2 percent at 40,093.40 (close)burs-tc/pbt

Asian stocks climbed on Friday, buoyed by a rally on Wall Street, strong earnings from Google parent company Alphabet, and the prospect of diffusing tensions in US President Donald Trump’s trade war.US stocks rallied for a third straight session Thursday, shrugging off signs US trade deals with China and the European Union aren’t imminent.Beijing had said on Thursday any claims of ongoing trade talks with Washington were “groundless” after Trump played up the prospects of a deal to lower hefty tariffs he imposed on China.France’s economy minister Eric Lombard said a trade deal between the United States and the European Union was also a way off.But global markets appear to have brushed aside the lack of progress.”There are mixed signals about whether there have been some talks about trade between US and China,” said Lloyd Chan, a senior currency analyst at MUFG.”Nonetheless, the trade war and US policy-related uncertainty have persisted. Asian economies still face the risk of higher reciprocal tariffs.”Tokyo climbed one percent, while Hong Kong, Shanghai were also up.The Nikkei rise came despite struggling Japanese auto giant Nissan issuing a stark profit warning on Thursday, forecasting a huge loss of up to $5.3 billion in the 2024-25 financial year.The markets see that the company “is moving ahead toward turnaround”, said Bloomberg Intelligence analyst Tatsuo Yoshida, as Nissan shares climbed more than three percent on Friday. “Booking significant impairment losses and restructuring charges is a necessary step toward Nissan Motor’s turnaround.”Seoul jumped 0.5 percent after US Treasury Secretary Scott Bessent said a trade “understanding” between South Korea and the United States could be reached by next weekTaipei, Sydney, Singapore, Manila and Wellington also climbed.Markets were responding to strong earnings from Google parent Alphabet, which reported on Thursday a profit of $34.5 billion in the recently ended quarter.Overall revenue at Alphabet grew 12 percent to $90.2 billion compared to the same period a year earlier, while revenue for the cloud unit grew 28 percent to $12.3 billion, according to the tech giant.MUFG’s Chan also pointed to the Federal Reserve possibly cutting interest rates sooner than expected.Fed Governor Christopher Waller said during an interview with Bloomberg Television that he would support interest rate cuts if harsh tariffs hurt the jobs market.”In terms of the latest Fed speak, Fed’s Waller has said he would support rate cuts should there be a significant deterioration in the labour market,” Chan said.- Key figures at 0300 GMT -Tokyo – Nikkei 225: UP 1.4 percent at 35,527.39 (break)Hong Kong – Hang Seng Index: UP 1.29 percent 22,191.59Shanghai – Composite: UP 0.1 percent at 33,00.061 Euro/dollar: DOWN at $1.1349 from $1.1392 on ThursdayPound/dollar: DOWN at $1.3304 from $1.3339 Dollar/yen: UP at 142.97 from 142.62 yenEuro/pound: DOWN at 85.30 from 85.35 penceWest Texas Intermediate: UP 0.24 percent at $62.94 per barrelBrent North Sea Crude: UP 0.2 percent at $66.68 per barrelNew York – Dow: UP 1.2 percent at 40,093.40 (close)London – FTSE 100: UP 0.5 percent at 8,407.44 (close)burs-tc/fox 

Wall Street stocks pushed higher for a third day on Thursday but the rally fizzled elsewhere as China poured cold water on US President Donald Trump’s comments talking up prospects of a deal to end their trade war.US stocks tanked on Monday after comments by Trump sparked fears he would try to remove Federal Reserve chief Jerome Powell.But global markets rebounded on Tuesday after Trump indicated he had no intention to oust Powell, also signaling that tariffs on China could be substantially lowered and that the United States would have a “fair deal” on trade with Beijing.But China on Thursday denied that any “economic and trade negotiations” are taking place with Washington.Treasury Secretary Scott Bessent also tempered optimism, saying the two countries were “not yet” talking when it comes to lowering tariffs.Those comments led to a mostly lower session in Asia and early losses in Europe, which nevertheless ended the day with small gains.However, Wall Street pushed higher after a mixed open, finishing solidly higher for a third straight day. Thursday’s gains are part of a “relief rally” that is persisting, said Adam Sarhan of 50 Park Investments.”The last few times the market has gone down a lot, Trump has changed his stance and he’s done so quickly,” said Sarhan. “When the markets move, Trump listens.”The dollar weakened as White House uncertainty boosted demand for the Swiss franc, the yen and gold, seen as safe-haven assets.Meanwhile investors were also looking to a series of company results for signs of how tariffs may weigh on the outlook for the year ahead.”Comments about tariffs from business leaders are omnipresent and investors want to know how companies plan to deal with potential cost pressures,” said Russ Mould, investment director at AJ Bell.Shares in consumer goods manufacturer Procter & Gamble slumped 3.7 percent after it cut its sales and profit forecasts, citing a pullback by consumers amid the tariff and economic uncertainty.Shares in its British rival Unilever shed 0.3 percent although it said the impact of US tariffs on its products would be “limited”, as it reported a dip in first-quarter revenue.Shares in Pepsi slid nearly five percent after it too cut its 2025 sales and profit forecasts.Japanese auto giant Nissan predicted an enormous loss of around five billion dollars this year as US President Donald Trump’s tariffs on car imports hit the industry.In Paris, shares in luxury group Kering fell 1.6 percent after it reported a further sales slump at its flagship Gucci brand.In Frankfurt, German sportswear giant Adidas gained 2.9 percent as its profit almost doubled in the first quarter, beating expectations.Meanwhile Nintendo shares gained as much as 5.5 percent after the gaming giant boasted of higher-than-expected demand in Japan for pre-orders of its Switch 2 game console.- Key figures at 2030 GMT -New York – Dow: UP 1.2 percent at 40,093.40 (close)New York – S&P 500: UP 2.0 percent at 5,484.77 (close)New York – Nasdaq Composite: UP 2.7 percent at 17,166.04 (close)London – FTSE 100: UP 0.1 percent at 8,407.44 (close)Paris – CAC 40: UP 0.3 percent at 7,502.78 (close)Frankfurt – DAX: UP 0.5 percent at 22,064.51 (close)Tokyo – Nikkei 225: UP 0.5 percent at 35,039.15 (close)Hong Kong – Hang Seng Index: DOWN 0.7 percent at 21,909.76 (close)Shanghai – Composite: FLAT at 3,297.29 (close)Euro/dollar: UP at $1.1392 from $1.1316 on WednesdayPound/dollar: UP at $1.3339 from $1.3254Dollar/yen: DOWN at 142.62 from 143.45 yenEuro/pound: DOWN at 85.35 from 85.37 penceWest Texas Intermediate: UP 0.8 percent at $62.79 per barrelBrent North Sea Crude: UP 0.7 percent at $66.55 per barrelburs-jmb/md

US President Donald Trump’s promises of securing trade deals with major partners took another blow Thursday, with a French minister saying an agreement with the EU was “a long way” off and China insisting talks had not even started.Since returning to the presidency in January, Trump has imposed 10 percent tariffs on most trading partners, including the European Union, as a means of pressuring them to negotiate trade agreements more favorable to the United States.He has also slapped tariffs on sector-specific imports, adding to strained ties with partners.But he saved his toughest blows for China, slapping an additional 145 percent tariff on goods from the world’s second biggest economy this year — drawing strong retaliation.Even though top US officials have touted 18 proposals brought to the trade team and said Washington was setting the stage for a deal with China, Beijing has called claims of ongoing trade talks “groundless.”Separately, France’s economy minister Eric Lombard said Thursday in Washington that the EU and United States are far from reaching a deal on tariffs.- ‘Meeting with China’ -Asked about the state of negotiations with Beijing, Trump maintained on Thursday: “We’ve been meeting with China.”He did not give details on who was taking part in these discussions.Yet, hours earlier, Chinese Commerce Ministry spokesman He Yadong told reporters: “I would like to emphasize that there are currently no economic and trade negotiations between China and the United States.”China’s foreign ministry also called reports of ongoing talks “false.”On Wednesday, US Treasury Secretary Scott Bessent told reporters that Washington and Beijing were “not yet” speaking on lowering tariffs.He added that staggeringly high tariff levels would have to come down before trade talks can happen, and stressed that Trump has not made any unilateral offer to slash duties on Chinese products.In response to Trump’s most recent tariffs on Chinese imports, Beijing hit back with fresh 125 percent levies on American goods this year.Trump’s on-again, off-again approach to rolling out tariffs has roiled financial markets, as Washington unveiled steep duties before making carveouts in recent months.Most recently, the Trump administration temporarily excluded tech products like smartphones from his “reciprocal tariffs,” which include a 125 percent rate on imports from China.On Thursday, a White House official told AFP the Trump administration was looking at “streamlining overlap” between tariffs on automobiles, steel and aluminum, as well as those imposed over illicit fentanyl.But no final decision has been made on any amendments to tariffs on auto imports and parts, the White House added.- Mixed progress -The picture appears mixed for other trading partners, with Trump unveiling — then halting — even steeper levies on many of them.A 90-day pause on these higher levels of “reciprocal tariffs” on dozens of countries is set to expire in early July.France’s Lombard told reporters that the EU is “still a long way from an agreement” with the United States, on the sidelines of the International Monetary Fund and World Bank’s spring meetings in Washington.But he maintained that talks with the US side were warm, after engaging with officials including Bessent and Commerce Secretary Howard Lutnick.Lombard noted a desire from his counterparts to “move forward as quickly as possible.”On Wednesday, Bessent added that the United States was “very close” when it came to trade talks with India, while it is also “proceeding with the other trading partners.”Bessent added Thursday that Washington had a “very successful bilateral meeting” with South Korean representatives.”We will be talking technical terms as early as next week,” he said. “They came with their A game, and we will see if they follow through on that.”

Wall Street stocks pushed higher for a third day on Thursday but the rally fizzled elsewhere as China poured cold water on US President Donald Trump’s comments talking up prospects of a deal to end their trade war.US stocks tanked on Monday after comments by Trump sparked fears he would try to remove Federal Reserve chief Jerome Powell.But global markets rebounded on Tuesday after Trump indicated he had no intention to oust Powell, also signalling that tariffs on China could be substantially lowered and that the United States would have a “fair deal” on trade with Beijing.China on Thursday said any claims of ongoing trade talks with Washington were “groundless”.Treasury Secretary Scott Bessent also tempered optimism, saying the two countries were “not yet” talking when it comes to lowering tariffs.Those comments led to a mostly lower session in Asia and early losses in Europe, which ended the day with small gains.However Wall Street pushed higher after a mixed open, with the Nasdaq briefly gaining two percent as tech stocks bounced higher.”Hopes of progress on trade deals were bolstered by reports that an agreement with India was near,” said Chris Beauchamp, chief market analyst at online trading platform IG.”The investing world is back to hanging onto every word out of the White House, but with such a confusing and often contradictory stance on tariffs, volatility is all we can really guarantee,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown.City Index and FOREX.com analyst Fawad Razaqzada said:  “Until we see meaningful resolution on the tariff front, it may well be the case that markets remain in a choppy environment with larger-than-usual swings.”The dollar weakened as White House uncertainty boosted demand for the Swiss franc, the yen and gold, seen as safe-haven assets.Meanwhile investors were also looking to a series of company results for signs of how tariffs may weigh on the outlook for the year ahead.”Comments about tariffs from business leaders are omnipresent and investors want to know how companies plan to deal with potential cost pressures,” said Russ Mould, investment director at AJ Bell.Shares in consumer goods manufacturer Procter & Gamble slumped five percent after it cut its sales and profit forecasts, citing a pullback by consumers amid the tariff and economic uncertainty.Shares in its British rival Unilever shed 0.3 percent although it said the impact of US tariffs on its products would be “limited”, as it reported a dip in first-quarter revenue.Shares in Pepsi slid 3.8 percent after it too cut its 2025 sales and profit forecasts.Japanese auto giant Nissan predicted an enormous loss of around five billion dollars this year as US President Donald Trump’s tariffs on car imports hit the industry.In Paris, shares in luxury group Kering fell 1.6 percent after it reported a further sales slump at its flagship Gucci brand.In Frankfurt, German sportswear giant Adidas gained 2.9 percent as its profit almost doubled in the first quarter, beating expectations.Meanwhile Nintendo shares gained as much as 5.5 percent after the gaming giant boasted of higher-than-expected demand in Japan for pre-orders of its Switch 2 game console.- Key figures at 1530 GMT -New York – Dow: UP 0.5 percent at 39,810.39 pointsNew York – S&P 500: UP 1.2 percent at 5,439.39New York – Nasdaq Composite: UP 1.7 percent at 16,989.20London – FTSE 100: UP less than 0.1 percent at 8,407.44 (close)Paris – CAC 40: UP 0.3 percent at 7,502.78 (close)Frankfurt – DAX: UP 0.5 percent at 22,064.51 (close)Tokyo – Nikkei 225: UP 0.5 percent at 35,039.15 (close)Hong Kong – Hang Seng Index: DOWN 0.7 percent at 21,909.76 (close)Shanghai – Composite: FLAT at 3,297.29 (close)Euro/dollar: UP at $1.1361 from $1.1317 on WednesdayPound/dollar: UP at $1.3301 from $1.3257Dollar/yen: DOWN at 142.69 from 143.49 yenEuro/pound: UP at 85.41 from 85.34 penceWest Texas Intermediate: UP 0.1 percent at $62.36 per barrelBrent North Sea Crude: UP 0.1 percent at $65.26 per barrelburs-rl/jj

Once blithely dominant in China, European automakers are now launching full-fledged charm offensives at consumers in the world’s largest car market, seeking to claw back sales lost to domestic rivals.At this week’s Auto Shanghai, the largest global industry show of its kind, foreign firms — in particular legacy German ones — pitched dozens of electric, high-tech models made “in China for China”. Volkswagen, the largest foreign automaker operating in the country, announced that by 2027 it would release more than 20 new cars for the local market. “There is still a huge opportunity for the German brands to make a comeback, but with each day without a truly tech-defined car (like Chinese rivals) it seems unlikely,” EV specialist Elliot Richards told AFP. Volkswagen entered the Chinese market through a joint venture when it first opened up, swiftly taking the lion’s share. Forty years later though, dozens of ultra-competitive homegrown car brands have blossomed. The Chinese government’s strategic support for the EV and hybrid sector has seen many domestic firms become world leaders in that area. BYD, Geely, Dongfeng and others took 65 percent of the local market in 2024, up 22.2 percent year-on-year, data from MarkLines shows. German brands’ share decreased by 10.8 percent in the same year. Other European brands like Renault still manufacture some cars in China, but have withdrawn from the local market. For those still in the game, holding ground in China is essential, as Europe’s market weakens and US President Donald Trump complicates access to the United States with his tariff policy.- ‘Turning a big ship’ -“Decades ago, it was very easy to develop, to produce one standard, and to provide it globally,” Volkswagen CEO Oliver Blume said at Auto Shanghai. “Today it’s impossible.”To adapt to an increasingly sophisticated and monied Chinese consumer base, firms have employed a variety of tactics. “German carmakers have invested heavily into their competitiveness in order to catch up with Chinese brands in the areas of electrification, intelligent vehicles and market responsiveness,” European Chamber Vice President Stefan Bernhart told AFP. Volkswagen works closely with domestic giants FAW, SAIC and JAC, and recently added Xpeng, a startup known for its tech proficiency, to its list of partners. Stellantis produces cars in China notably through its alliance with Leapmotor, another Chinese startup. Brands are also boosting local research and development staffing and investment, and increasing their output to what Volkswagen calls “China Speed”. Even as it considers layoffs in Europe, Volkswagen has reinforced its development capacity in China, planning to release its new models in 18 months and save 40 percent of the costs. “Turning a big ship around takes effort, commitment, and also some sacrifices,” Brian Gu, XPeng’s co-president, told AFP. “But I see they’re very committed to change.”- Mercedes versus Nio -Until 2023, luxury European behemoths like Mercedes and BMW could still count on the fact their cars were seen as status symbols, according to consultancy Inovev. Their sales slipped last year though, as the prestige of local brands like Nio and individual models like Xiaomi’s SU7 has risen. At Auto Shanghai, Mercedes presented a long version of its new electric star, the CLA, as well as a luxury minivan aimed at the rich Chinese leisure set. CEO Ola Kallenius was bullish about prospects in what he called the “world’s most competitive market”. He pointed to features targeted at local customers, including an advanced driver assistance system, as well as giant screens, as Chinese drivers “use (their car) as an entertainment space”. Porsche is also betting on its cachet — announcing this week it will concentrate on higher value sales rather than volume. However, with Chinese competitors slashing prices but not quality, consumers are no longer as willing to pay a premium for Western brands, according to Inovev.  “The name of the game is value,” said Tu Le, founder of Sino Auto Insights. “Chinese consumers between the age of 30 and 45 are going into showrooms, looking at Mercedes, looking at Nio, and buying that Nio instead.” But EV specialist Richards warned against complete gloom: “Nothing is certain in the automotive space, especially in China, and everything is still up for grabs.” 

A rally on global stock markets fizzled Thursday as China poured cold water on US President Donald Trump’s comments talking up the prospects of a deal to end their trade war.It follows a jump in markets the previous day as Trump signalled that tariffs on China could be substantially lowered and that the United States would have a “fair deal” on trade with Beijing.But China on Thursday said any claims of ongoing trade talks with Washington were “groundless”.Treasury Secretary Scott Bessent also tempered optimism, saying the two countries are “not yet” talking when it comes to lowering tariffs.”The investing world is back to hanging onto every word out of the White House, but with such a confusing and often contradictory stance on tariffs, volatility is all we can really guarantee,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown.City Index and FOREX.com analyst Fawad Razaqzada said that “until we see meaningful resolution on the tariff front, it may well be the case that markets remain in a choppy environment with larger-than-usual swings.”Wall Street opened mixed, while European equities were lower in afternoon trading.In Asia, Tokyo closed 0.5 percent higher, while Shanghai ended flat and Hong Kong fell almost one percent.Seoul fell after official data showed South Korea’s economy unexpectedly contracted 0.1 percent in the first three months of 2025.The dollar weakened as White House uncertainty boosted demand for the Swiss franc, the yen and gold, seen as safe-haven assets.Bessent also said that in its talks with Japan on tariffs, Washington had “absolutely no currency targets”, after repeated comments from Trump that he wants a stronger yen.Meanwhile investors are also looking to a series of company results for signs of how tariffs may weigh on the outlook for the year ahead.”Comments about tariffs from business leaders are omnipresent and investors want to know how companies plan to deal with potential cost pressures,” said Russ Mould, investment director at AJ Bell.Shares in consumer goods manufacturer Procter & Gamble slumped 3.5 percent after it cut its sales and profit forecasts, citing a pullback by consumers amid the tariff and economic uncertainty.Shares in its British rival Unilever shed 0.5 percent although it said the impact of US tariffs on its products would be “limited”, as it reported a dip in first-quarter revenue.Shares in Pepsi slid 1.8 percent after it too cut its 2025 sales and profit forecasts.Japanese auto giant Nissan predicted an enormous loss of around five billion dollars this year as US President Donald Trump’s tariffs on car imports hit the industry.In Paris, shares in luxury group Kering fell 2.5 percent after it reported a further sales slump at its flagship Gucci brand.In Frankfurt, German sportswear giant Adidas gained around three percent as its profit almost doubled in the first quarter, beating expectations.Meanwhile Nintendo shares gained as much as 5.5 percent after the gaming giant boasted of higher-than-expected demand in Japan for pre-orders of its Switch 2 game console.- Key figures at 1330 GMT -New York – Dow: DOWN 0.4 percent at 39,462.82 pointsNew York – S&P 500: UP less than 0.1 percent at 5,379.94New York – Nasdaq Composite: UP 0.3 percent at 16,755.08London – FTSE 100: DOWN 0.3 percent at 8,375.18Paris – CAC 40: DOWN 0.1 percent at 7,473.14Frankfurt – DAX: DOWN 0.2 percent at 21,913.61Tokyo – Nikkei 225: UP 0.5 percent at 35,039.15 (close)Hong Kong – Hang Seng Index: DOWN 0.7 percent at 21,909.76 (close)Shanghai – Composite: FLAT at 3,297.29 (close)Euro/dollar: UP at $1.1377 from $1.1317 on WednesdayPound/dollar: UP at $1.3305 from $1.3257Dollar/yen: DOWN at 142.40 from 143.49 yenEuro/pound: UP at 85.51 from 85.34 penceWest Texas Intermediate: UP 0.9 percent at $62.82 per barrelBrent North Sea Crude: UP 0.7 percent at $65.65 per barrelburs-rl/jhb