Afp Business Asia

The Japanese parent company of 7-Eleven said Tuesday that a buyout bid from a Canadian convenience store rival was still on the table despite a report that it planned to reject the multibillion-dollar offer.Seven & i, which operates some 85,000 convenience stores worldwide, last year rebuffed an offer worth nearly $40 billion from Alimentation Couche-Tard (ACT) that would have been the biggest foreign buyout of a Japanese firm.The Yomiuri daily reported Tuesday that a special committee scrutinising ACT’s sweetened offer of reportedly around $47 billion has decided to say no to that too.Antitrust concerns were one reason for the decision, the daily said, given Seven & i and ACT’s overlapping store networks in the United States.But Seven & i did not confirm the report when contacted by AFP.”The company remains committed to exploring all opportunities to unlock value for shareholders and continues to assess a full range of strategic alternatives, including the proposal from ACT,” it said in a statement.Seven & i said its “special committee is engaging constructively with ACT to determine if an actionable proposal can be achieved that addresses the serious US antitrust challenges that any such transaction would face”.Seven & i shares, which have been highly volatile since ACT’s approach was first announced, shed as much as 10 percent after the Tokyo market opened Tuesday following the report.Its shares were down 7.8 percent in afternoon trade.The Yomiuri reported the decision to reject the acquisition offer would be made soon at a board meeting.Board members would also replace CEO Ryuichi Isaka with outside director Stephen Hayes Dacus, it said, echoing reports in other outlets.Dacus has previously worked for Uniqlo owner Fast Retailing and US retail giant Walmart, and would be Seven & i’s first foreign chief.Seven & i, which last week said its founding family had failed to put together sufficient financing for a buyout to fend off ACT’s offer, on Monday said “no decision has been made” regarding management changes.Now the world’s biggest convenience store brand, 7-Eleven began in the United States, but it has been wholly owned by Seven & i since 2005.ACT, which began with one store in Quebec in 1980, runs nearly 17,000 convenience store outlets worldwide including the Circle K chain.

Asian markets tumbled on Tuesday after US President Donald Trump hiked tariffs on Chinese imports and warned that levies on Mexico and Canada could not be averted.Japan’s Nikkei and Hong Kong’s Hang Seng saw the biggest drop, falling more than two percent and 1.5 percent respectively.It comes after the White House said on Monday that Trump had signed an executive order to increase a previously imposed 10 percent tariff on China to 20 percent.Trump also stressed that Canada and Mexico would not avoid being hit with 25 percent levies, causing US stocks to fall sharply on Monday. The new levies came into effect soon after midnight.Canada responded on Monday by putting 25 percent tariffs on $155 billion worth of American goods.Beijing also warned that it was “strongly dissatisfied” and would be taking countermeasures to safeguard its “rights and interests”, a commerce ministry spokesperson said in a statement.Fears that the retaliatory tariffs could escalate into a full-blown trade war drove markets down across Asia.Japanese automakers with Mexican factories in their supply chains suffered, with Nissan, Toyota and Honda among the major losers and all down more than two percent.Exchanges across Asia mirrored the downward trajectory, with Thailand, Australia, New Zealand and Taiwan dropping around one percent.Equities also fell in the Philippines, Malaysia and South Korea, where a second stock exchange named Nextrade was opened on Tuesday.”The spectre of a full-blown trade war is once again looming, threatening to choke global economic growth just as investors were starting to regain confidence,” said Stephen Innes of SPI Asset Management.Investors are hoping China will announce a huge stimulus package at its key parliamentary meeting on Wednesday, the National People’s Congress, to stimulate the economy.”In the upcoming National People’s Congress, Chinese policymakers could provide more pro-growth measures including announcing a larger budget deficit target and maintaining a five percent growth target for this year,” said MUFG Bank’s Lloyd Chan.Trump expressed outrage on Monday over the weakening of certain currencies, accusing Beijing and Tokyo of using it as a trade strategy, although the Japanese government fiercely refuted the claim.The oil market also saw sharp declines, with West Texas Intermediate crude falling to $68 per barrel, and Brent crude from the North Sea dropping to $71.06 per barrel at around 0200 GMT.Bitcoin’s price plunged nearly 10 percent on Monday as concerns of an escalating trade war pushed investors to seek safer investments.Bitcoin and similar digital assets had surged over the weekend after Trump suggested creating a national cryptocurrency reserve.”Everything is getting sold,” Forexlive manager Adam Button said. “There’s a de-risking that’s unfolding” among crypto investors, he said.- Key figures around 0230 GMT -Tokyo – Nikkei 225: DOWN 1.84 percent at 37,090.72 (break)Hong Kong – Hang Seng Index: DOWN 1.3 percent at 22,706.40Shanghai – Composite: DOWN 0.2 percent at 3,310.14Euro/dollar: UP at 1.0485 from $1.0419 on MondayPound/dollar: UP at $1.2694 from $1.2612 Dollar/yen: DOWN 149.32 from 150.28 yenEuro/pound: DOWN at 82.60 pence from 82.62 pence West Texas Intermediate: DOWN 0.42 percent at $68.08 per barrelBrent North Sea Crude: DOWN 0.66 percent at $71.15 per barrelNew York – Dow: DOWN 1.5 percent at 43,191.24 (close)London – FTSE 100: UP 0.6 percent at 8,809.74 (close)

Workers’ rights, a housing crisis and marital disputes are among the issues that China’s leaders will discuss at annual political meetings that open Tuesday in Beijing.The ruling Communist Party will use the conclave known as the “Two Sessions” to rubber-stamp a raft of pre-approved legislation, with little expectation of any meaningful opposition as voting is tightly controlled.But the 5,000 national delegates can also take advantage of the occasion in the capital to garner support for pet projects that may make it into law in the future.Here are some of this year’s proposals: – Changing workforce -China is grappling with a slowing economy and a rapidly changing labour force, as young people struggle to find jobs while a vast cohort of older workers approaches retirement.Gan Huatian, a representative of the Chinese People’s Political Consultative Conference (CPPCC) from southwestern Sichuan province, said he would propose a law penalising employers engaging in “academic discrimination” against graduates from lower-ranking universities, according to a local news outlet.Li Dongsheng, a deputy to the National People’s Congress (NPC), wants to see lower social security contributions for “flexible” workers — a precarious group that has grown with booming delivery services, China News Service reported.China last year hiked its retirement age for the first time in decades.The threshold is due to rise gradually over the next 15 years from 60 to 63 for men, and from 50 to 55 for blue-collar women.NPC representative Feng Tao, of eastern Shandong province, told the Workers’ Daily newspaper that he wanted longer annual leave for those with more than 30 years of experience.- Housing fix -China has struggled to escape a years-long slump in its property sector, a once key driver of growth weighed down by huge debts that have led some developers into default.Beijing has already rolled out a range of measures to help people purchase city homes more easily, to ensure that buyers end up with properties they have purchased in advance.But at least one delegate is addressing it head-on.CPPCC member Zhai Meiqing — an executive at a Hong Kong real-estate conglomerate — told a national financial news outlet she would push for a “trade-in” system.That would see local governments pay residents subsidies to swap their old homes for new ones.- Marriage woes -China’s divorce rate has risen in recent decades, and marriages have been on the decline too — falling by a fifth in 2024, according to official data.For the fifth straight year, CPPCC member Jiang Shengnan plans to speak out against China’s mandatory “cooling-off period” for divorces.The rule, which came into effect in 2021, requires couples who file for divorce to wait 30 days before they can confirm their separation.Jiang, a screenwriter from eastern Zhejiang province, told the Southern Weekly newspaper that the current law especially puts women at greater risk of domestic violence.Meanwhile, Shi Bingqi, a delegate from northern Hebei province, is eyeing a cap on the amount the groom’s family pays brides before the wedding.Shi told the state-run China National Radio (CNR) that rural areas, where the practice is more common, should not allow “sky-high” prices that can be up to twice what the average local person earns in a year.The CPCC is also mulling a proposal that would lower the marriage age — currently 22 for men and 20 for women — to 18, according to state-run nationalist tabloid the Global Times.- Harassment, tattoos, larger font -Other reported proposals run the gamut from the serious to mundane or even bizarre.NPC delegate Fang Yan of northern Shaanxi province has called for parents, teachers and other adults who harm children to face heavier legal punishments, China News Weekly said.Li Ziwei, a delegate from the northeastern rust-belt province of Liaoning, told CNR she would push to tighten a crackdown on people who traffic women and children.She has also suggested imposing heavy penalties on people who force children to get tattoos, saying it might harm their future job prospects in a country where they are traditionally a taboo.And delegate Dai Yin, of central China’s Hunan province, told state broadcaster CCTV she wants leaders to enlarge the font on prescription drug bottles — and simplify their instructions — so that elderly patients can read them more easily.

US President Donald Trump shut down hopes Monday of an eleventh-hour deal with Canada and Mexico to avert sweeping tariffs, while signing an order to further hike duties on China.Trump had unveiled — and then paused — blanket tariffs on imports from major trading partners Canada and Mexico in February, accusing them of failing to stop illegal immigration and drug trafficking.The halt is due to expire Tuesday, and US stock markets tumbled after Trump told reporters Monday there was “no room left” for both countries to avoid the levies.The duties stand to impact over $918 billion worth of US imports from both countries.Canadian Prime Minister Justin Trudeau on Monday pledged to impose retaliatory 25 percent tariffs on Washington, saying in a statement: “Canada will not let this unjustified decision go unanswered.”Trump also inked an order Monday to increase a previously imposed 10 percent tariff on China to 20 percent — piling atop existing levies on various Chinese goods.Beijing warned it would take countermeasures against the new tariffs to safeguard its own interests.Economists caution that tariffs could raise consumer prices while weighing on growth and employment.Asian markets fell on opening Tuesday, with Japan’s Nikkei index dropping more than two percent and Hong Kong’s Hang Seng down 1.5 percent after Trump’s latest tariff actions. The Tax Foundation estimates that before accounting for foreign retaliation, tariffs on Canada, Mexico and China this time would each cut US economic output by 0.1 percent.And sweeping duties, particularly on Canada and Mexico, are set to snarl supply chains for key sectors like automobiles and construction materials, risking cost increases to households.This could complicate Trump’s efforts to fulfill his campaign promises of lowering prices for Americans.On Monday, Trump told reporters that 25 percent tariffs on Canada and Mexico were “all set.” Canadian energy goods face a lower rate.”What they’ll have to do is build their car plants, frankly, and other things in the United States,” Trump said.Former US officials see Trump’s tariffs over drugs like fentanyl as a means to tackle socio-economic problems — while providing legal justifications to move quickly.Washington is also seeking leverage and to rebalance trade ties, analysts believe.But using emergency economic powers to impose tariffs on Canada, Mexico and China is a novel move, and could trigger lawsuits.- Higher costs -Mexican President Claudia Sheinbaum said her country has contingency plans, whatever decision Trump takes.If Trump continues with his tariff plans, KPMG chief economist Diane Swonk warned: “We could easily reach the highest effective tariff rate since 1936 by the beginning of 2026.”Both consumers and manufacturers stand to bear the costs of additional tariffs, which could diminish demand and trigger layoffs as businesses try to keep costs under control, she told AFP.Robert Dietz, chief economist at the National Association of Home Builders, told AFP the group expects a possible “combined duty tariff rate of above 50 percent on Canadian lumber” as proposed duties add up.Even as the United States also plans to expand forestry, Dietz said, prices will likely rise in the short-run.Anecdotally, some builders expect they could face higher costs of $7,500 to $10,000 per newly built single family home, he said.- Industry pushback -Trump’s doubling down on tariffs has already drawn industry pushback.The US-China Business Council, a group of around 270 American firms that do business in China, warned in a statement that sweeping tariffs would hurt US firms, consumers and farmers “and undermine our global competitiveness.””Any use of tariffs should be strategic and targeted, focusing on specific US national security goals and unfair Chinese economic practices,” the council’s president Sean Stein said.The National Retail Federation, meanwhile, warned that as long as tariffs on Canada and Mexico are in place, “Americans will be forced to pay higher prices on household goods.”While Washington has targeted China over chemicals for illicit fentanyl, many of the components have legitimate uses, too — making prosecution tricky. Trudeau has said that less than one percent of the fentanyl and undocumented migrants that enter the United States come through the Canadian border.

Asian markets tumbled on Tuesday after US President Donald Trump heaped tariffs on Chinese imports and warned levies on Mexico and Canada could not be averted.Japan’s Nikkei and Hong Kong’s Hang Seng saw the biggest drop, tumbling more than two percent and 1.5 percent respectively.It comes after the White House said Trump had signed on Monday an executive order to increase a previously imposed 10 percent tariff on China, to 20 percent.The US president also stressed that Canada and Mexico would not avoid being hit with 25 percent levies, causing US stocks to fall on Monday.Canada responded on Tuesday by putting 25 percent tariffs against $155 billion worth of American goods.Beijing also warned on Tuesday that it would take countermeasures against new US tariffs on Chinese imports.”China is strongly dissatisfied with this and firmly opposes it, and will take countermeasures to resolutely safeguard its own rights and interests,” a commerce ministry spokesperson said in a statement.Fears the retaliatory tariffs could escalate into a full-blown trade war, drove markets down across Asia on Tuesday.Japanese automakers with Mexican factories in their supply chain suffered, with Nissan (-2.11%), Toyota (-2.25%), or Honda (-2.12%) among the major losers.Exchanges across Asia mirrored the downward trajectory, with Thailand, Australia, New Zealand and Taiwan dropping around one percent.South Korea, the Philippines and Malaysia also fell.”The spectre of a full-blown trade war is once again looming, threatening to choke global economic growth just as investors were starting to regain confidence,” said Stephen Innes, SPI Asset Management.Investors are hoping China will announce a huge stimulus package at its key parliamentary meeting on Wednesday, the National People’s Congress, to stimulate the economy.”In the upcoming National People’s Congress, Chinese policymakers could provide more pro-growth measures including announcing a larger budget deficit target and maintaining a five percent growth target for this year,” said Lloyd Chan, from MUFG bank.Trump expressed outrage on Monday over the weakening of certain currencies and accused Beijing and Tokyo of using it as a trade strategy – a claim fiercely refuted by the Japanese government.The oil market also saw sharp declines with US WTI crude oil falling 0.54 percent to $68 per barrel, and Brent crude from the North Sea dropping 0.77 percent to $71.06 per barrel at around 0200 GMT.Bitcoin’s price plunged nearly 10 percent on Monday as concerns of an escalating trade war pushed investors to seek safer investments.Bitcoin and similar digital assets had surged over the weekend after Trump suggested creating a national cryptocurrency reserve.”Everything is getting sold,” Forexlive manager Adam Button said, adding: “There’s a de-risking that’s unfolding” among crypto investors.- Key figures around 0230 GMT -Tokyo – Nikkei 225: DOWN 1.84 percent at 37,090.72 (break)Hong Kong – Hang Seng Index: DOWN 1.3 percent at 22,706.40Shanghai – Composite: DOWN 0.2 percent at 3,310.14Euro/dollar: UP at 1.0485 from $1.0419 on MondayPound/dollar: UP at $1.2694 from $1.2612 Dollar/yen: DOWN 149.32 from 150.28 yenEuro/pound: DOWN at 82.60 pence from 82.62 pence West Texas Intermediate: DOWN 0.42 percent at $68.08 per barrelBrent North Sea Crude: DOWN 0.66 percent at $71.15 per barrelNew York – Dow: UP 1.4 percent at 43,840.91 (close)London – FTSE 100: UP 0.6 percent at 8,809.74 (close)

Shares of the owner of 7-Eleven plunged on Tuesday after a report said the Japanese retailer plans to reject a multibillion-dollar takeover offer by Canada’s Alimentation Couche-Tard (ACT).Seven & i, which operates some 85,000 convenience stores worldwide, last year rebuffed an ACT offer worth nearly $40 billion that would have been the biggest foreign buyout of a Japanese firm.The Yomiuri daily reported that a special committee scrutinising ACT’s raised offer of reportedly around $47 billion has decided formally to say no to that too.The decision was due in part to antitrust concerns, given Seven & i and ACT’s overlapping network of stores in the United States, the daily added. Seven & i shares, which have been highly volatile since ACT’s approach was first announced, shed as much as 10 percent after the Tokyo market opened on Tuesday.The latest news followed separate reports that the 7-Eleven owner is set to replace its CEO Ryuichi Isaka with outside director Stephen Hayes Dacus.Dacus, who has also worked for Uniqlo owner Fast Retailing and the Japanese arm of US retail giant Walmart, would also be Seven & i’s first foreign CEO.Seven & i said on Monday “no decision has been made” about management changes.Last week Seven & i said its founding family failed to put together sufficient financing for a buyout to fend off ACT’s offer.The franchise began in the United States, but it has been wholly owned by Seven & i since 2005 and is the world’s biggest convenience store brand. ACT, which began with one store in Quebec in 1980, now runs nearly 17,000 convenience store outlets worldwide including the Circle K chain.

Donald Trump’s latest tariff hike targeting China is likely only the start of his intensifying trade war against Beijing, which may struggle to shield its already ailing economy, analysts warned.The unpredictable White House returnee railed against major US trading partners during his campaign, vowing to impose blistering measures on China once elected.After just six weeks in office, the new tariffs — which Trump says are retaliation for Beijing’s failure to stem the devastating US fentanyl crisis — already surpass those of his first term.”(This is) a move we see as signalling an aggressive stance,” wrote Ting Lu, Chief China Economist at Nomura.Tuesday’s step adds to another blanket 10 percent tariff imposed last month, lifting average US levies on Chinese imports to around 33 percent, according to estimates by Nomura.”The tariff hikes that Trump has completed on China are nearly double the size of the tariff hikes during his entire first term,” wrote Lu.Leaders in China — an export powerhouse that has failed to achieve a strong post-pandemic economic recovery — are nervously eyeing a renewed trade war with the United States under Trump.The rubber-stamp National People’s Congress is convening in Beijing this week for a key annual political conference, during which officials will hash out plans for how to boost the sluggish economy and respond to US tariffs.Growth in the first quarter of the year is at risk of slowing, wrote Zichun Huang of Capital Economics.”And that’s before the hit from tariffs is felt in earnest,” said Huang.”Unless the leadership unveil greater-than-expected stimulus at the National People’s Congress, it is hard to see how a slowdown can be avoided this year,” she added.- ‘Crosshairs’ -Trump’s first few weeks in office have seen him hit Canada and Mexico with even higher 25 percent tariffs, which also came in force on Tuesday.And his initial salvos against China of two 10 percent tariffs are lower than the much more drastic 60 percent rate threatened during the campaign.That has been interpreted by some as a sign that Washington is adopting a softer approach than expected in managing its rocky relationship with Beijing.But experts say that China is likely to represent the new Trump administration’s primary economic and geopolitical foe in coming years — something that is obscured in recent weeks by domestic US issues and major developments in the Russia-Ukraine war.”While Trump has shown some inclination towards making a fresh ‘deal’ with China on trade lately, the big picture is that the country is still very clearly in his crosshairs,” said Thomas Mathews of Capital Economics.”The threat of tariffs, export controls, investment restrictions, and the like is still a big downside risk, in our view, for investors in China’s markets,” he added.Observers are also anticipating a tougher response by Beijing, which retaliated last month with targeted measures including 15 percent duties on US coal and liquefied natural gas.Condemning the latest tariffs, Beijing vowed Tuesday that it will take retaliatory measures that will “resolutely safeguard its own rights and interests”. – More coming -“US-China tensions may take centre stage in the coming months,” said Lu of Nomura.”This probably won’t be the final tariff hike on China,” wrote Julian Evans-Pritchard of Capital Economics, noting that Trump has threatened to impose “reciprocal” tariffs on various countries as soon as early April.”China is not an obvious target for reciprocal tariffs given that it has lower duties on the US than vice versa,” said Evans-Pritchard.But there are other ways for Trump to further aggravate the trade war, he said, such as through targeted levies on specific goods similar to those imposed under his predecessor Joe Biden.Trump may also seek to terminate China’s status of having “permanent normal trade relations” with the United States, a move that would push the average levy on Chinese goods to above 40 percent, he added.Chinese state-backed tabloid Global Times reported Monday that Beijing is now considering implementing its own measures in response to Trump’s tariffs, citing “reliable sources”.”I think the policymakers and exporters in China already anticipated higher tariffs in the United States, and made plans accordingly,” said Zhiwei Zhang, President and Chief Economist of Pinpoint Asset Management.

Taiwanese chip-making giant TSMC will invest at least $100 billion in the United States to build “cutting edge” manufacturing facilities, President Donald Trump said Monday, announcing the latest blockbuster financial pledge by a private company since his return to office.Taiwan Semiconductor Manufacturing Co’s new investment will come on top of their existing commitments, and will go into “building five cutting edge fabrication facilities,” Trump said during a White House event, flanked by TSMC chief executive C.C. Wei.He added that much of the funding would be invested in the US state of Arizona, where TSMC — the world’s largest chipmaker — has already invested heavily, and would create “many thousands” of high-paying jobs.TSMC has long faced demands to move more of its production away from Taiwan, amid fears that supplies of the critical technology could be disrupted in any conflict with Beijing.The company, during former president Joe Biden’s administration, pledged to invest more than $65 billion in three factories in Arizona, one of which began production in late 2024.Trump recently ratcheted up the pressure on TSMC and other chip manufacturers by publicly mulling the introduction of 25 percent tariffs on all semiconductor chips made outside the United States.Taiwan said it will review the investment “in accordance with the law”.The review will take into account “the company’s development while ensuring the overall competitiveness of the semiconductor industry and the country,” cabinet spokeswoman Michelle Lee said.  “The close cooperation in high-tech industries between Taiwan and the United States has made Taiwan the most important partner for the United States in maintaining its leading position in high-tech and technology industries,” Lee said. “In the future, our country will continue to strengthen cooperation to create mutual benefits and win-win results.”Taiwan’s Department of Investment Review spokesman Su Chi-yen told AFP the government could potentially veto the investment, but that “most past rejections were due to incomplete documentation.”Monday’s announcement brings the total amount committed by TSMC to around $165 billion, C.C. Wei said Monday.”We are going to produce many chips to support AI progress, and to support smartphones’ progress,” he added.The new investment will help expand the firm’s US footprint to include “three new fabrication plants, two advanced packaging facilities and a major R&D (research and development) team center,” while supporting 40,000 construction jobs over the next four years, TSMC said in a statement.The concentration of chip manufacturing in Taiwan has been described as a “silicon shield” against a possible invasion or blockade by China, which claims the island as part of its territory and has threatened to use force to bring it under its control.There are concerns Taiwan could lose that protection if its companies build too many factories overseas.”Taking away Taiwan’s technology sector will reduce the power of Taiwan’s ‘silicon shield’,” James Yifan Chen, assistant professor in the Department of Diplomacy and International  Relations at Tamkang University in Taiwan.”Taiwan without semiconductor and tech industries will be like Ukraine without nuclear weapons.”- Tariff threats -Since regaining the White House, Trump has called on companies to create more manufacturing jobs in the United States, while threatening to impose steep levies on those who do not comply.His administration has already imposed a 10 percent tariff on Chinese goods, and is scheduled to impose a 25 percent tariff Canada and Mexico from Tuesday, alongside an additional levy of 10 percent on goods from China.On Monday, Trump said there was “no room left for Mexico or for Canada” to avoid the tariffs, adding: “They’re all set, they go into effect tomorrow.”Trump has invited executives from some of the world’s largest companies — including OpenAI and Oracle — to the White House since his January 20 inauguration to tout investments worth hundreds of billions of dollars in US manufacturing.The amount announced since inauguration day now totals more than $1 trillion, including a commitment from Apple to invest $500 billion over the next four years.These gargantuan sums are sure to please Trump’s supporters. His critics point to some similarly ambitious targets pledged during his first term in office which failed to materialize.

US stocks closed sharply lower Monday, after President Donald Trump slapped fresh sanctions against China and levies on Mexico and Canada neared imposition, while European defense shares soared as the European Union sought increased military spending over Ukraine.The White House said Trump had signed an executive order raising tariffs on China to 20 percent, shortly after Trump seemed to rule out any change to the planned 25 percent tariffs against Mexico and Canada. “The tariffs, you know, they’re all set, they go into effect tomorrow,” Trump said at the White House when a reporter asked whether the levies against the two US trading partners would come into force on Tuesday.The Dow Jones Industrial Average slipped 1.5 percent, while the broad-based S&P lost 1.8 percent, and the tech-rich Nasdaq took a harsher tumble, closing down 2.6 percent. The CBOE Volatility Index, or VIX — colloquially known as Wall Street’s “fear gauge” — surged, hitting its highest level since December.But despite the uncertainty, “the backdrop remains a favorable one,” Angelo Kourkafas from Edward Jones told AFP.Monday’s trading, he added, was “consistent with the choppiness we have seen over the past three months” in the financial markets.- European defense stocks surge -In Europe, BAE Systems surged 14 percent, helping London’s benchmark FTSE 100 index to a record high, the latest in a series over recent months.French defense group Thales won more than 16 percent and German peer Rheinmetall rallied 15 percent.”Europe is rallying round Ukraine and it’s hard to see defense stocks not enjoying years of orders,” noted Neil Wilson, analyst at TipRanks.European Commission chief Ursula von der Leyen warned on Sunday that “we urgently have to rearm Europe” as leaders from the continent met in London for crisis talks over Ukraine.”It’s important we prepare for the worst,” she said, a few days after British Prime Minister Keir Starmer pledged to boost UK defense spending to 2.5 percent of economic output by 2027.In Germany, the two parties hoping to form the next government are planning to invest hundreds of billions of euros into defense and infrastructure when in power, the Bild newspaper reported Sunday.The DAX jumped 2.6 percent, setting a record high, with shares in carmakers jumping after the EU signaled it will give them greater leeway in meeting lower CO2 emissions targets.Asian stock markets largely gained Monday, with investors eyeing a potential Chinese stimulus package while bracing for US tariffs.Hong Kong and Shanghai stock markets shed early gains ahead of the key Chinese parliamentary meeting that opens on Wednesday, while Tokyo closed up 1.7 percent.Chinese stocks had been boosted in part by data released on Saturday that showed manufacturing activity grew in February after a dip the previous month.Hong Kong was helped by the blockbuster IPO of bubble-tea and drinks giant Mixue Group, which saw its shares jump 40 percent.- Key figures around 2145 GMT -New York – Dow: DOWN 1.5 percent at 43,191.24 points (close) New York – S&P 500: DOWN 1.8 percent at 5,849.72 (close) New York – Nasdaq Composite: DOWN 2.6 percent at 18,350.19 (close) London – FTSE 100: UP 0.7 percent at 8,871.31 (close) Paris – CAC 40: UP 1.1 percent at 8,199.71 (close)Frankfurt – DAX: UP 2.6 percent at 23,147.02 (close)Tokyo – Nikkei 225: UP 1.7 percent at 37,785.47 (close)Hong Kong – Hang Seng Index: UP 0.3 percent at 23,006.27 (close)Shanghai – Composite: DOWN 0.1 percent at 3,316.93 (close)Euro/dollar: UP at $1.0485 from $1.0384 on FridayPound/dollar: UP at $1.2700 from $1.2584 Dollar/yen: DOWN at 149.47 from 149.52 yenEuro/pound: UP at 82.56 pence from 82.51 pence West Texas Intermediate: DOWN 2.0 percent at $68.37 per barrelBrent North Sea Crude: DOWN 2.1 percent at $71.62 per barrelburs-rl-da-tmc/jgc

US President Donald Trump shut down hopes Monday of an eleventh hour deal with Canada and Mexico to avert sweeping tariffs, while signing an order to hike duties on China.Trump had unveiled — and then paused — blanket tariffs on imports from major trading partners Canada and Mexico in February, accusing them of failing to stop illegal immigration and drug trafficking.The halt is due to expire Tuesday, and US stock markets tumbled after Trump told reporters Monday there was “no room left” for both countries to avoid fresh levies.The White House also said Trump had inked an order to increase a previously imposed 10 percent tariff on China to 20 percent.But sweeping levies, particularly on Canada and Mexico, are set to snarl supply chains for key sectors like automobiles and construction materials, risking a hike in consumer prices.This could complicate Trump’s efforts to fulfill his campaign promises of lowering costs for households.On Monday, Trump told reporters that tariffs of up to 25 percent on Canada and Mexico were “all set.””What they’ll have to do is build their car plants, frankly, and other things in the United States, in which case they have no tariffs,” he added.In Ottawa, Canadian foreign minister Melanie Joly said Trump’s looming tariffs represent an “existential threat” to the country, with thousands of jobs at stake.She added that if Trump went ahead, “we are ready with counter tariffs.”Beyond this week’s looming deadline, Trump said on social media that Monday that tariffs on agricultural imports would come on April 2.A White House official told AFP that this came under Trump’s existing plans for reciprocal tariffs tailored to each trading partner.”There’s no doubt that the administration is trying to solve the long-standing fentanyl and immigration challenges, and these tariffs have given the administration leverage,” said Ryan Majerus, a former US trade official.Washington is also trying to rebalance trade ties, he told AFP.But using emergency economic powers to impose tariffs on Canada, Mexico and China is novel.”It remains to be seen how this will all play out in potential lawsuits,” warned Majerus, a partner at law firm King & Spalding.- Cost concerns -Robert Dietz, chief economist at the National Association of Home Builders, told AFP the group expects that “we could see a combined duty tariff rate of above 50 percent on Canadian lumber.”Trump’s tariffs on Canada are expected to pile on to other potential levies on lumber.”Softwood lumber futures prices have gone up eight percent in the last few weeks,” he added.While the United States also plans to expand forestry, Dietz said, prices will likely rise in the short-run.Anecdotally, some builders expect they could face higher costs of $7,500 to $10,000 per newly-built single family home, he said.- ‘New headwind’ -JPMorgan analysts warned Friday that Tuesday’s tariffs would “create a significant new headwind to economic activity” and boost consumer costs.Mexico’s President Claudia Sheinbaum said Monday that her country has contingency plans, whatever the decision Trump takes.While Washington has targeted China over chemicals for the fentanyl drug, many of these components have legitimate medical uses, too — making prosecution tricky.Canadian Prime Minister Justin Trudeau has said that less than one percent of the fentanyl and undocumented migrants that enter the United States come through the Canadian border.But he added Sunday that Canada would “have a strong, unequivocal and proportional response” if levies took effect.Trudeau’s government has taken a series of steps to address Trump’s concerns including a Can$1.3-billion ($901-million) plan to enhance border security.It has also named a fentanyl czar to coordinate efforts against the drug.Meanwhile, Mexico last week extradited some of its most notorious imprisoned drug lords to the United States in a bid to avert the sweeping duties.They included a cartel kingpin wanted for decades over the murder of a US undercover agent.