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China-based DeepSeek shook up the world of generative artificial intelligence (GenAI) early this year with a low-cost but high-performance model that challenges the hegemony of OpenAI and other big-spending behemoths.Since late 2022, just a handful of AI assistants — such as OpenAI’s ChatGPT, Anthropic’s Claude, and Google’s Gemini — have reigned supreme, becoming ever more capable thanks to multi-billion-dollar investments in engineers, data centers, and high-performance AI chips.But then DeepSeek upended the sector with its R1 model, which it said cost just $6 million or so, powered by less-advanced chips.While specialists suspect DeepSeek may have cost more than its creators claim, its debut fueled talk that GenAI assistants are becoming just a regular commodity, thanks to innovation and market forces.”The first company to train models must expend lots of resources to get there,” said CFRA senior equity analyst Angelo Zino.”The second mover can get there cheaper and more quickly.”At a HumanX AI conference in Las Vegas this week, Hugging Face co-founder Thomas Wolf said it is getting less expensive to launch GenAI models — and less important which one people use.”I feel like we are moving to this multi-model world, which is a good thing,” Wolf said, pointing to the muted reception given to the most recent version of ChatGPT.- Stay flexible -At the conference, OpenAI chief product officer Kevin Weil pushed back against the notion that all models are created equal.”That’s actually not true,” Weil said.”The days of us having a 12-month lead are probably gone, but I think we have a three- to six-month lead, and that is really valuable.”Weil said OpenAI plans to fight to keep that narrowing edge over its competitors.With 400 million users, San Francisco-based OpenAI has the advantage of being able to use data from massive traffic to continually improve its models, Weil explained.”OpenAI has the Google advantage of being the thing that’s in everybody’s minds,” said Alpha Edison equity firm research director Fen Zhao.Jeff Seibert, chief of the accounting and AI start-up Digits, agreed that OpenAI will stay ahead of the pack but added that he expects the gap to eventually close.”For advanced use cases, yes, there will be a lot of advantages,” he said of OpenAI’s position.”But for a lot of stuff, it won’t matter as much.”Seibert advises entrepreneurs to design their technology to allow them to swap out GenAI models, affording them flexibility in a quickly changing industry.- Cash burn -Improved use of chips and new optimization techniques have driven down the cost of designing the large language models (LLMs) that power ChatGPT, Gemini and their rivals.An open-source approach taken by some LLMs is credited with helping accelerate innovation by making the software free for anyone to tinker with and improve.The valuation of closed-model startups such as Anthropic and OpenAI has likely peaked as their “first-mover advantage dissipates,” according to Zino.Japanese investment colossus SoftBank pumped $40 billion into OpenAI in February in a deal that valued the startup at $300 billion — almost double what it was last year.“If you’re burning a billion dollars a month, which I think OpenAI is, you have to keep raising money,” said Jai Das of venture capital firm Sapphire Ventures.”I have a hard time seeing how they get to a point where revenues are higher than the amount of cash they burn.”Anthropic raised $3.5 billion in early March, valuing the champion of responsible AI at $61.5 billion.

Gold surpassed $3,000 for the first time Friday as US President Donald Trump’s trade wars boosted demand for the safe-haven asset, while stock markets bounced on signs US lawmakers would avert a government shutdown.US shares rose in early deals after slumping in recent sessions while Asian equities ended the week on a positive note.European stock markets were also given a lift in afternoon deals after Germany moved closer to approving a massive infrastructure and defence spending programme.In Washington, with just hours until a deadline to push a Republican spending bill through, Senate Democratic leader Chuck Schumer dropped his threat to block it.The package would keep the government operating through September, but Democrats have come under pressure from their base to defy the plan, which they say is full of harmful spending cuts.Stocks gained support from “a burgeoning sense that a government shutdown will be averted after Senator Schumer said he will vote for House-passed continuing resolution,” said Patrick O’Hare, analyst at Briefing.com.O’Hare said stocks were also getting a boost from speculation China would announce more stimulus measures, and from reports that meetings between Canadian and US officials had made some progress towards easing trade tensions.In the eurozone, Paris and Frankfurt both rebounded after losses the previous day on US tariff threats. Germany’s likely next chancellor Friedrich Merz said his conservatives had struck a deal with the Greens on massively boosting defence and infrastructure spending, paving the way for the plan’s approval in parliament.”Germany is poised to pursue essential structural reforms while hoping for an end to the economic downturn,” said Jochen Stanzl, an analyst at CMC Markets. “Investor sentiment shifted dramatically today.”- Times of uncertainty -Gold, a haven in times of uncertainty, rose as much as $3,004 an ounce before paring back gains later in the day to trade just under $3,000.The precious metal was “boosted on increased haven demand amid trade war risks and recent stock market volatility”, said Fawad Razaqzada, an analyst at City Index and Forex.com.In the latest salvo, Trump threatened to impose 200 percent tariffs on wine, champagne and other alcoholic beverages from EU countries.His threat came after the bloc’s planned levies on American-made whiskey and other products in retaliation to US levies on steel and aluminium.Trump said he would not row back on the metals duties, nor his plans for sweeping tariffs on countries worldwide that are to kick in on April 2.Wall Street has been hammered in recent sessions by trade tensions, with the S&P 500 slipping into a technical correction Thursday, having fallen more than 10 percent from the record high it hit just last month.Some analysts warned that Friday’s rebound would be short-lived.”Recent rallies have run into a buzzsaw of selling pressure,” said Nathan Peterson, an analyst at Charles Schwab. “Tariff escalations, a potential government shutdown, and persistent growth concerns due to trade policy make it difficult to sustain any kind of a bounce.”In company news, shares in Gucci-owner Kering plunged more than 11 percent in Paris as the group appointed a new creative director to helm its struggling flagship brand.Shares in BMW were in the red as the German automaker warned that trade tensions between the United States, Europe and China would cost the company $1 billion this year.Major Hong Kong conglomerate CK Hutchison Holdings — owned by tycoon Li Ka-shing — tumbled after Chinese officials in the city reposted a newspaper opinion piece attacking the firm over its sale of a controlling stake in Panama ports under pressure from Trump.It had surged as much as 25 percent after the sale was announced last week.- Key figures around 1640 GMT -New York – Dow: Up 1.2 percent at 41,304.64 points New York – S&P 500: UP 1.6 percent at 5,608.70 New York – Nasdaq Composite: UP 2.0 percent at 17,655.95 London – FTSE 100: UP 1.1 percent at 8,632.33 (close)Paris – CAC 40: UP 1.1 percent at 8,028.28 (close)Frankfurt – DAX: UP 1.9 percent at 22,986.82 (close)Tokyo – Nikkei 225: UP 0.7 percent at 37,053.10 (close)Hong Kong – Hang Seng Index: UP 2.1 percent at 23,959.98 (close)Shanghai – Composite: UP 1.8 percent at 3,419.56 (close)Euro/dollar: UP at $1.0878 from $1.0849 on ThursdayPound/dollar: DOWN at $1.2919 from $1.2948Dollar/yen: UP at 148.29 yen from 147.75 yenEuro/pound: UP at 84.23 pence from 83.75 penceBrent North Sea Crude: UP 0.5 percent at $70.33 per barrelWest Texas Intermediate: UP 0.4 percent at $66.97 per barrel

Gold surpassed $3,000 for the first time Friday as US President Donald Trump’s trade wars boost the safe-haven asset, while stock markets bounced on hopes US lawmakers will avert a government shutdown.US shares rose in early deals after slumping in recent sessions while Asian equities ended the week on a positive note.European stock markets were also given a lift in afternoon deals after Germany moved closed to approving a massive infrastructure and defence spending programme.In Washington, with just hours until a deadline to push a Republican spending bill through, Senate Democratic leader Chuck Schumer dropped his threat to block it.The package would keep government operating through September, but Democrats have come under pressure from their grassroots to defy the plan, which they say is full of harmful spending cuts.Stocks gained support from “a burgeoning sense that a government shutdown will be averted after Senator Schumer said he will vote for House-passed continuing resolution,” said Patrick O’Hare, analyst at Briefing.com.O’Hare said stocks were also getting a boost from speculation China will announce more stimulus measures, and from reports that meetings between Canadian and US officials may have made some progress towards easing trade tensions.London’s FTSE 100 index rose as the pound dropped against the dollar, after data showed the UK economy unexpectedly shrank in January. In the eurozone, Paris and Frankfurt both rebounded after losses the previous day on US tariff threats. Germany’s likely next chancellor Friedrich Merz said his conservatives had struck a deal with the Greens on massively boosting defence and infrastructure spending, paving the way for the plan’s approval in parliament.- Times of uncertainty -Gold, a safe haven in times of uncertainty, rose as much as $3,004 an ounce before paring back gains later in the day to trade under $3,000.The precious metal was “boosted on increased haven demand amid trade war risks and recent stock market volatility”, said Fawad Razaqzada, analyst at City Index and Forex.com.In the latest salvo, Trump threatened to impose 200 percent tariffs on wine, champagne and other alcoholic beverages from European Union countries.His threat came after the bloc’s planned levies on American-made whiskey and other products in retaliation to US levies on steel and aluminium.Trump said he would not row back on the metals duties, nor plans for sweeping tariffs on countries worldwide due to kick on April 2.Wall Street has been hammered in recent sessions by trade tensions, with the S&P 500 slipping into a correction Thursday, having fallen more than 10 percent from its recent peak — a record high touched just last month.In company news, shares in Gucci-owner Kering slumped more than 11 percent in Paris as the group appointed a new creative director to helm its struggling flagship brand.Shares in BMW were in the red as the Germany automaker warned that trade tensions between the United States, Europe and China would cost the company $1 billion this year.Major conglomerate CK Hutchison Holdings — owned by tycoon Li Ka-shing — tumbled in Hong Kong after Chinese officials in the city reposted an newspaper opinion piece attacking the firm over its sale of a controlling stake in Panama ports under pressure from Trump.It had surged as much as 25 percent after the sale last week.- Key figures around 1340 GMT -New York – Dow: Up 0.6 percent at 41,037.37 points New York – S&P 500: UP 1.1 percent at 5584.42 New York – Nasdaq Composite: UP 1.8 percent at 17,611.92 London – FTSE 100: UP 0.5 percent at 8,583.13 pointsParis – CAC 40: UP 0.9 percent at 8,012.07Frankfurt – DAX: UP 1.6 percent at 22,940.17Tokyo – Nikkei 225: UP 0.7 percent at 37,053.10 (close)Hong Kong – Hang Seng Index: UP 2.1 percent at 23,959.98 (close)Shanghai – Composite: UP 1.8 percent at 3,419.56 (close)Euro/dollar: UP at $1.0893 from $1.0849 on ThursdayPound/dollar: DOWN at $1.2939 from $1.2948Dollar/yen: UP at 148.57 yen from 147.75 yenEuro/pound: UP at 85.40 pence from 83.75 penceBrent North Sea Crude: UP 0.3 percent at $70.14 per barrelWest Texas Intermediate: UP 0.3 percent at $66.81 per barrel

German automaker BMW warned Friday that it would take a big hit from trade wars between the United States, China and Europe this year, on top of weak Chinese demand, after profits plunged in 2024.Finance chief Walter Mertl said at the presentation of BMW’s annual results that US tariffs on steel and aluminium, in place since Wednesday, would hit the group’s profit margins.CEO Oliver Zipse put the total cost of tariffs — including European Union levies on cars imported for China — at one billion euros ($1.08 billion) in an interview with Bloomberg TV.Overall, BMW said that it expected earnings before taxes in 2025 to be at the same subdued level as in 2024, while warning that much depended on rapidly changing trade policies.In January, Zipse called on the the EU to lower its tariff on American cars in an effort to smooth tensions. That same month, BMW filed a legal challenge against the EU’s tariffs on Chinese electric cars.The Munich-headquartered group makes cars and motorbikes all over the world, including in China.Speaking at the results conference, Joachim Post, responsible for supply chains at BMW, said the group’s global network meant that it would try to be “flexible”, reducing costs “and even avoiding customs duties where we can.”- China challenge -For 2024, the group’s net profit fell 37 percent to 7.7 billion euros ($8.3 billion) while revenues were down over eight percent to 142.4 billion euros. That was partly down to issues with a braking system that affected over 1.5 million vehicles, as well as issues in China, where European carmakers have been losing ground to local rivals such as BYD.Vehicle deliveries in China were down 13.4 percent last year, while total deliveries of BMW group, which also includes Mini and Rolls-Royce, fell just four percent. US President Donald Trump’s aggressive trade policy, which aims to boost US manufacturing, is a spanner in the works for firms like BMW, even though it makes cars in the United States.Trump hit Canada and Mexico with tariffs before partially rolling them back, including a temporary exemption to most auto imports after an outcry from carmakers in the US who often supply parts from their neighbours.Trump has also threatened to hit the European Union with 25-percent duties, which could hammer the region’s automakers. BMW said its latest guidance for 2025 takes into account tariff moves made so far. It warned that further increases in duties “could have a negative impact”.

Taiwanese tech giant Foxconn reported on Friday a lower-than-expected net profit for 2024 as consumer electronic gadgets underperformed, although demand for its artificial intelligence servers remained robust.The world’s largest contract electronics manufacturer has been moving beyond assembling devices such as Apple’s iPhones into areas ranging from electric vehicles to AI servers.The company said full-year net profit rose seven percent to NT$152.7 billion (US$4.6 billion). That compares with an average forecast of NT$159.4 billion, according to a Bloomberg News survey of analysts.Full-year revenue rose 11 percent to NT$6.9 trillion, beating the market forecast of NT$6.8 trillion.Foxconn, also known as Hon Hai Precision Industry, has been riding a wave of global demand for generative AI in recent years.The company reported a “strong performance” in its AI server business, with revenue up 150 percent, according to documents released ahead of an earnings call with analysts.This year would be the “Year of AI”, the company said, with shipments increasing in every quarter.The earnings announcement comes as US President Donald Trump imposed tariffs against major trading partners including China, Canada and Mexico, igniting trade wars and causing markets to fall.While Foxconn has plants around the world, the bulk of its operations is based in China, which has been hit by 20 percent levies on products shipped to the United States.Foxconn is building a mega-AI server plant in Mexico, which a local official told Bloomberg recently would be completed in a year despite Trump’s tariff threats. The $900 million assembly plant near Guadalajara will become the world’s largest to be powered by Nvidia’s GB200 AI chips, Jalisco Governor Pablo Lemus Navarro said.Apple said recently it would team up with Foxconn later this year to begin producing servers that power the cloud components of Apple Intelligence in Houston, Bloomberg reported. “I think there will be more and more of these projects, and when these projects mature, we will let everyone know,” Foxconn chairman Young Liu said in response to a question about the company’s plans for further US investment on an online earnings call.- ‘Very confident in Apple’ -Liu noted that tariffs were “quite a headache” for the chief executives of Foxconn’s customers, but he said it was “very, very difficult to predict” how it would unfold. “We can only wait and see what will happen and do what we can do well. This is Hon Hai’s attitude,” Liu said.Foxconn makes most of its revenue from iPhones, whose sales have slipped in markets like mainland China, but Liu brushed aside concerns about the popular gadget.”We are very, very confident in Apple,” Liu said.”I believe that they will definitely do something in the generative AI area, so we will continue to maintain in-depth cooperation with our client. This will not change.”Foxconn has also been in the spotlight over potential cooperation with Japanese automaker Nissan after its merger talks with rival Honda fell through in February.Liu previously said Foxconn was open to buying French auto giant Renault’s stake in Nissan and was looking into a cooperation with Nissan, not a merger.The company has also been looking to expand into the Japanese EV market. Liu said Friday that Foxconn is expected to sign a contract with a Japanese car maker or makers “within one or two months”.

Asian investors fought Friday to grind out gains at the end of a painful week for markets as they welcomed signs that US lawmakers will avert a government shutdown, but remained fearful over Donald Trump’s trade war.Equities have been pummelled in recent weeks and gold pushed to a record high, by concerns about a US recession as the president hammers trading partners with swingeing tariffs while billionaire ally Elon Musk slashes federal jobs at home.In the latest salvo, Trump threatened to impose 200 percent tariffs on wine, champagne and other alcoholic beverages from European Union countries in retaliation against the bloc’s planned levies on American-made whiskey.The European measures — including a 50 percent tariff on American whiskey — were in response to the White House’s levies on steel and aluminium imports.”If this Tariff is not removed immediately, the U.S. will shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES,” Trump posted on his Truth Social platform.He also said he would not row back on the metals duties, nor plans for sweeping reciprocal tariffs on global partners that are due to kick in as soon as April 2.Observers have warned that markets are being wracked by uncertainty amid fears the increasing trade war between major global economies could reignite inflation, with many investors worrying about a possible recession in the United States.Wall Street has been hammered, with the S&P 500 slipping into a correction Thursday, having fallen more than 10 percent from its recent peak — a record high touched just last month.Gold, a haven in times of turmoil, hit a record of $2,993.91 on Friday owing to a rush into safety.However, Asian markets enjoyed a broadly positive day with hopes th US Congress will pass a bill to avert a painful government shutdown.With just hours until a deadline to push a Republican spending bill through, Senate Democratic leader Chuck Schumer dropped his threat to block it.The package would keep the lights on through September, but Democrats have come under pressure from their grassroots to defy the plan, which they say is full of harmful spending cuts.Schumer claimed Trump and Musk — who runs the Department of Government Efficiency (DOGE) that has gutted various key agencies — were hoping for the government to grind to a halt.”A shutdown would give Donald Trump and Elon Musk carte blanche to destroy vital government services at a significantly faster rate than they can right now… with nobody left at the agencies to check them,” he warned.Hong Kong rose more than two percent, recouping some of the losses suffered over the week, while Shanghai jumped 1.8 percent on news that Chinese officials would hold a news conference Monday on measures to boost consumption.Tokyo, Sydney, Wellington, Taipei, Manila and Bangkok also advanced. There were losses in Singapore, Seoul and Jakarta.London ticked up at the open but Paris and Frankfurt edged down.Chris Beauchamp, chief market analyst at IG, said a US government shutdown could be costly.”The 2018-2019 shutdown… resulted in an estimated $11 billion loss to the US economy, with $3 billion considered permanent,” he wrote in a note.”Current market participants are clearly factoring in similar potential damage if lawmakers fail to reach an agreement.”A government shutdown, combined with existing trade tensions and tariffs, could exacerbate market volatility. Investors are already concerned about the economic impact of ongoing tariffs, which have contributed to declines in major stock indices in recent sessions.”Dealers were also watching developments in Europe after Russian President Vladimir Putin said he had “serious questions” about Washington’s plan for a 30-day ceasefire in Ukraine. However, he said he was ready to discuss it with his American counterpart.In company news, major conglomerate CK Hutchison Holdings — owned by tycoon Li Ka-shing — tumbled in Hong Kong after Chinese officials in the city reposted an attack on the firm over its sale of a controlling stake in Panama ports under pressure from Trump.It had surged as much as 25 percent after the sale last week.- Key figures around 0815 GMT -Tokyo – Nikkei 225: UP 0.7 percent at 37,053.10 (close)Hong Kong – Hang Seng Index: UP 2.1 percent at 23,959.98 (close)Shanghai – Composite: UP 1.8 percent at 3,419.56 (close)London – FTSE 100: UP 0.1 percent at 8,550.09Euro/dollar: DOWN at $1.0838 from $1.0849 on ThursdayPound/dollar: DOWN at $1.2923 from $1.2948Dollar/yen: UP at 148.83 yen from 147.75 yenEuro/pound: UP at 83.87 pence from 83.75 penceWest Texas Intermediate: UP 1.1 percent at $67.31 per barrelBrent North Sea Crude: UP 1.0 percent at $70.56 per barrelNew York – Dow: DOWN 1.3 percent at 40,813.57 (close)

A new graft scandal rocked the European Parliament after police carried out raids Thursday in Belgium and Portugal, detaining multiple suspects in a probe into suspicions of corruption under the guise of lobbying for the benefit of Chinese tech giant Huawei.The new investigation comes more than two years after the “Qatargate” scandal, in which a number of EU lawmakers were accused of being paid to promote the interests of Qatar and Morocco — something both countries have firmly denied.None of those held for questioning on Thursday were EU lawmakers, a police source told AFP. But Belgian media reported more than a dozen parliamentarians were on the detectives’ radar.Transparency campaigners, who have accused EU lawmakers of resisting reform, called on the parliament to immediately investigate the latest claims.”The alleged bribery is said to have benefitted Huawei,” the Belgian federal prosecutor’s office said after local media reported the probe focused on the company.Huawei said it took the allegations “seriously” and would “urgently communicate with the investigation to further understand the situation”.”Huawei has a zero tolerance policy towards corruption or other wrongdoing, and we are committed to complying with all applicable laws and regulations at all times,” the firm said in a statement Friday.The Belgian prosecutor’s office earlier said several people were taken in for questioning over their “alleged involvement in active corruption within the European Parliament, as well as for forgery and use of forgeries”.The investigating judge ordered seals on the European Parliament offices of two parliamentary assistants and a suspect had been arrested in France, it added in a second statement Thursday afternoon.The EU parliament said it had received a request for cooperation from the Belgian authorities and would “swiftly and fully honour” it.Prosecutors said the alleged corruption by a “criminal organisation” was “practised regularly and very discreetly from 2021 to the present day” and took “various forms”.These included “remuneration for taking political positions or excessive gifts such as food and travel expenses or regular invitations to football matches” as part of a bid to promote “purely private commercial interests” in political decisions.The alleged kickbacks were concealed as conference expenses and paid to various intermediaries, the office said, adding it was looking at whether money laundering had also been involved.About 100 police officers took part in the operation which included a total of 21 searches conducted across Belgium and in Portugal, it added.Belgium’s Le Soir daily said the Portuguese search focused on a company through which transfers had allegedly been made to one or more EU lawmakers.Portugal’s prosecutor general confirmed the raids were conducted “at the request of the Belgian authorities” but did not provide more details.- ‘Mockery of democracy’ -At the heart of the alleged corruption is a former parliamentary assistant who was employed as Huawei’s EU public affairs director, Belgian media said.Huawei has been in the EU’s crosshairs in recent years.Brussels in 2023 described the telecoms giant as a higher risk to the bloc than other 5G suppliers and called on EU states to exclude its equipment from their mobile networks.Le Soir said police had taken “several lobbyists” into custody and they were due to appear in front of a judge for questioning.Transparency defenders were scathing in their criticism of the parliament’s lack of wide-ranging reforms after the 2022 scandal.”These new allegations are as sweeping and serious as Qatargate and make a mockery of democracy at the European Parliament. For too long, MEPs have taken a carefree approach to ethics and continue to exist in a culture of impunity,” said Nicholas Aiossa, director at Transparency International EU.He urged swift and deep reform in the parliament, a call echoed by former transparency campaigner and current Green EU lawmaker, Daniel Freund.”This painfully shows that following Qatargate the EU remains vulnerable to corruption. Some reforms are still being blocked,” Freund told AFP, adding: “We finally need independent oversight for ethics violations.”Huawei has found itself at the centre of an intense tech rivalry between Beijing and Washington, with US officials warning its equipment could be used to spy on behalf of Chinese authorities — allegations they deny.Since 2019, US sanctions have cut Huawei off from global supply chains for technology and US-made components, a move that initially hammered its production of smartphones.burs-oho/sco

Global stock markets slid on Thursday, especially on Wall Street, as US President Donald Trump launched a new volley in his trade war, while gold hit a new record high.Worries about a potential US government shutdown by the weekend also worried investors, while Russian President Vladimir Putin’s limited backing of a possible ceasefire in Ukraine failed to boost sentiment.Trump threatened Thursday to impose 200 percent tariffs on wine, champagne and other alcoholic products from France and other European Union countries in retaliation against the bloc’s planned levies on US-produced whiskey, part of the EU’s reprisals for US tariffs on steel and aluminum imports.”President Trump’s threat of more tariffs, this time a 200 percent tariff on alcoholic beverages from the EU, has led to the resumption of the… sell-off in global stock indices,” said analyst Axel Rudolph at online trading platform IG.Trump has launched trade wars against competitors and partners alike since taking office, wielding tariffs as a tool to pressure countries on commerce and other policy issues.Shares in luxury giant LVMH, which owns several champagne houses including Dom Perignon and Hennessy cognac, slid 1.1 percent.Shares in French drinks group Pernod Ricard, which owns two champagne houses and Jameson Irish Whiskey, tumbled about four percent.The Paris stock exchange finished the day down 0.6 percent and Frankfurt shed 0.5 percent. London ended the day flat.Wall Street’s three main indices finished the day down sharply. The S&P 500 Index tumbled into a technical correction, or down 10 percent from its highest point of the year, recorded just last month.CFRA Research chief investment strategist Sam Stovall told AFP that the correction stemmed from “the tariff threats and the uncertainty surrounding retribution, (and) surrounding the possibility of recession as a result.””The only problem is we don’t know exactly how long it will go,” Stovall said.The drop came despite data showing US producer inflation was flat in February, defying expectations of an uptick as Trump’s tariff hikes targeting Chinese goods took effect.”That’s pretty good news in terms of inflation but the problem is, you have a trade war that’s expanding,” said Peter Cardillo of Spartan Capital Securities.Gold, seen as a safe haven, struck an all-time high of $2,988.54 per ounce, surpassing its late February record. Trump’s tariffs and pledges to slash taxes, regulations and immigration have sparked market volatility and concerns that the measures could reignite inflation.That in turn could force the US Federal Reserve to lift interest rates again, potentially causing a recession.Traders were also waiting on a decision from Russia on whether to mirror Ukraine’s acceptance of a 30-day ceasefire as proposed by the United States.Putin appeared to condition a 30-day ceasefire that the Trump administration has been pushing on Russian troops ejecting Ukrainian forces from Russia’s Kursk region. – Key figures around 2100 GMT -New York – Dow: DOWN 1.3 percent at 40,813.57 points (close)New York – S&P 500: DOWN 1.4 percent at 5,521.52 (close)New York – Nasdaq Composite: DOWN 1.96 percent at 17,303.01 (close)London – FTSE 100: FLAT at 8,542.56 (close)Paris – CAC 40: DOWN 0.6 percent at 7,938.21 (close)Frankfurt – DAX: DOWN 0.5 percent at 22,567.14 (close)Tokyo – Nikkei 225: DOWN 0.1 percent at 36,790.03 (close)Hong Kong – Hang Seng Index: DOWN 0.6 percent at 23,462.65 (close)Shanghai – Composite: DOWN 0.4 percent at 3,358.73 (close)Euro/dollar: DOWN at $1.0849 from $1.0890 on WednesdayPound/dollar: DOWN at $1.2948 from $1.2969Dollar/yen: DOWN at 147.75 yen from 148.32 yenEuro/pound: DOWN at 83.75 pence from 83.97 penceWest Texas Intermediate: DOWN 1.67 percent at $66.55 per barrelBrent North Sea Crude: DOWN 1.51 percent at $69.88 per barrelburs-sst/jgc

Global stock markets slid on Thursday as US President Donald Trump launched a new volley in his trade war, while gold hit a new record high.Worries about a potential US government shutdown at the weekend also worried investors, while Russian President Vladimir Putin’s limited backing of a ceasefire in Ukraine failed to boost sentiment.”President Trump’s threat of more tariffs, this time a 200 percent tariff on alcoholic beverages from the EU, has led to the resumption of the last few week’s sell-off in global stock indices,” said analyst Axel Rudolph at online trading platform IG.Trump threatened Thursday to impose 200-percent tariffs on wine, champagne and other alcoholic products from France and other European Union countries in retaliation against the bloc’s planned levies on US-produced whiskey, part of the EU’s reprisals for US tariffs on steel and aluminium imports.Trump has launched trade wars against competitors and partners alike since taking office, wielding tariffs as a tool to pressure countries on commerce and other policy issues.Shares in luxury giant LVMH, which owns several champagne houses including Dom Perignon and Hennessy cognac, slid 0.9 percent.Shares in French drinks group Pernod Ricard, which owns two champagne houses and Jameson Irish Whiskey, tumbled 4.1 percent.The Paris stock exchange finished the day down 0.6 percent and Frankfurt shed 0.5 percent. London ended the day flat.Wall Street’s three main indices were down more than one percent in afternoon trading. The drop came despite data showing US producer inflation was flat in February, defying expectations of an uptick as Trump’s tariff hikes targeting Chinese goods took effect.David Morrison, senior market analyst at Trade Nation, said cool inflation data would normally spark a rally, but investors remain wary.”The problem is President Trump’s tariff strategy, which appears indiscriminate, poorly targeted and inconsistent,” he said.Gold, seen as a safe haven, struck an all-time high of $2,971 per ounce, surpassing its late February record. Trump’s tariffs and pledges to slash taxes, regulations and immigration have sparked market volatility and concerns that the measures could reignite inflation.That in turn could force the Federal Reserve to lift interest rates again, potentially causing a recession.Analysts pointed out that the latest US inflation figures, while welcome, had to be taken in context.National Australia Bank’s Tapas Strickland said it was “worth noting the data was for February and thus largely pre-dates any potential tariff impacts”.Traders were also waiting on a decision from Russia on whether to mirror Ukraine’s acceptance of a 30-day ceasefire as proposed by the United States.”Investors remain on the edge of their seat as they weigh up the impact of tariffs and whether ceasefire talks will yield an agreement between Russia and Ukraine,” said Russ Mould, investment director at AJ Bell.Putin appeared to condition a 30-day ceasefire that the Trump administration has been pushing on Russian troops ejecting Ukrainian forces from Russia’s Kursk region. – Key figures around 1630 GMT -New York – Dow: DOWN 1.2 percent at 40,866.00 pointsNew York – S&P 500: DOWN 1.2 percent at 5,533.54New York – Nasdaq Composite: DOWN 1.7 percent at 17,355.00London – FTSE 100: FLAT at 8,542.56 (close)Paris – CAC 40: DOWN 0.6 percent at 7,938.21 (close)Frankfurt – DAX: DOWN 0.5 percent at 22,567.14 (close)Tokyo – Nikkei 225: DOWN 0.1 percent at 36,790.03 (close)Hong Kong – Hang Seng Index: DOWN 0.6 percent at 23,462.65 (close)Shanghai – Composite: DOWN 0.4 percent at 3,358.73 (close)Euro/dollar: DOWN at $1.0862 from $1.0890 on WednesdayPound/dollar: DOWN at $1.2945 from $1.2969Dollar/yen: DOWN at 147.64 yen from 148.32 yenEuro/pound: DOWN at 83.91 pence from 83.97 penceWest Texas Intermediate: DOWN 1.1 percent at $66.91 per barrelBrent North Sea Crude: DOWN 1.0 percent at $70.27 per barrelburs-rl/js

Belgian police on Thursday raided several addresses in the country as part of a probe into alleged corruption “under the guise of commercial lobbying”, prosecutors said.Several people were held for questioning over their “alleged involvement in active corruption within the European Parliament, as well as for forgery and use of forgeries,” the federal prosecutor’s office said.About 100 police officers took part in the operation that saw a total of 21 searches conducted across Belgium and in Portugal, it added.Belgian newspaper Le Soir and investigative website Follow the Money (FTM) said the probe was linked to Chinese tech giant Huawei and its activities in Brussels since 2021.Huawei did not immediately respond to AFP’s request for comment.The raids come more than two years after the “Qatargate” scandal, in which a number of EU lawmakers were accused of being paid to promote the interests of Qatar and Morocco — something both countries have strenuously denied.The prosecutor’s office gave no details about the individuals or companies involved.But it said the alleged corruption by a “criminal organisation” was “practised regularly and very discreetly from 2021 to the present day” and took “various forms”.These included “remuneration for taking political positions or excessive gifts such as food and travel expenses or regular invitations to football matches” as part of a bid to promote “purely private commercial interests” in political decisions.The alleged kickbacks were concealed as conference expenses and paid to various intermediaries, the office said, adding it was looking at whether money laundering had also been involved.At the heart of the alleged corruption is an ex-parliamentary assistant who was employed at the time as Huawei’s EU public affairs director, Belgian media said.Le Soir said police had taken “several lobbyists” into custody and they were due to appear in front of a judge for questioning.None of those held for questioning on Thursday morning were EU lawmakers, a police source told AFP.A spokesperson for the European Parliament told AFP that it “takes note of the information. When requested it always cooperates fully with the judicial authorities”.