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Most markets extended gains Friday, tracking record highs across Wall Street, after US inflation and jobs data all but set in stone a Federal Reserve interest rate cut next week.The bullishness that has characterised trade for the past few weeks has ramped up since a series of reports indicating the labour market in the world’s biggest economy was slowing sharply.Adding to that has been relief that a feared spike in inflation caused by US President Donald Trump’s tariffs has not so far emerged, giving the central bank room to loosen monetary policy.And that trend continued Thursday with figures showing August consumer prices rose a little more than the previous month but in line with expectations, while jobless claims hit their highest level in four years.A report last week revealed the economy added just 22,000 jobs in August, while revised data showed job growth was more than 900,000 fewer than previously reported in the year through March.Analysts said the readings mean the Fed will now put most of its focus on supporting the labour market, rather than bringing inflation down to its two percent level. It currently stands at around three percent.”Inflation is not getting closer to the Fed’s target, but… as labour market concerns grow more pressing, fears (that) price pressures will be persistent fade,” said Taylor Nugent, senior economist for markets, at National Australia Bank.”There is nothing to stand in the way of Fed cuts this year.”With all three main indexes on Wall Street hitting new heights, Asia was more than happy to pick up the baton heading into the weekend.Hong Kong led the way, rising more than one percent, helped by a surge of more than five percent in market heavyweight Alibaba.The e-commerce titan’s New York stock had spiked eight percent on Thursday, helped by its latest moves in the artificial intelligence sector including raising US$3.2 billion to boost its AI budget.It also said it would ramp up spending on its core e-commerce business.Seoul and Tokyo extended their record run this week, while Sydney, Taipei, Mumbai, Bangkok and Jakarta were also in the green. There were some losses in Shanghai, Singapore and Manila.London rose even as data showed the UK economy stalled in July, while Frankfurt was also slightly higher and Paris was flat.Traders are keenly awaiting the Fed’s policy meeting next week, with most expecting it to announce a 25-basis-point cut, though there are some rumblings of a 50-point reduction.The post-gathering statement and comments from boss Jerome Powell will be closely watched for clues about its moves for the rest of the year and heading into 2026.”The Fed is seemingly locked in and a done deal. While some may see the risk of potential disappointment if the Fed holds back from delivering a 50-basis-point cut, realistically, the prospects of an oversized 50-point move seems a tall order for the voting committee,” said Pepperstone’s Chris Weston.”The base case is a 25-basis-point cut backed by a commitment to ease further in the meetings ahead.”- Key figures at around 0810 GMT -Tokyo – Nikkei 225: UP 0.9 percent at 44,768.12 (close)Hong Kong – Hang Seng Index: UP 1.2 percent at 26,388.16 (close)Shanghai – Composite: DOWN 0.1 percent at 3,870.60 (close)London – FTSE 100: UP 0.3 percent at 9,322.17 Euro/dollar: UP at $1.1740 from $1.1737 on ThursdayPound/dollar: DOWN at $1.3564 from $1.3580 Dollar/yen: UP at 147.41 from 147.18 yen Euro/pound: UP at 86.55 pence from 86.43 penceWest Texas Intermediate: DOWN 0.7 percent at $61.96 per barrelBrent North Sea Crude: DOWN 0.6 percent at $65.97 per barrelNew York – Dow: UP 1.4 percent at 46,108.00 points (close)

A specially chartered flight carrying hundreds of South Korean workers detained in a US immigration raid last week landed at Incheon International Airport on Friday, AFP reporters saw. South Koreans made up the majority of the 475 people arrested at a Hyundai-LG battery factory site in the state of Georgia, triggering a delicate effort to resolve the thorny situation between close allies.The Korean Air Boeing 747-8I, with more than 310 South Koreans on board, departed from Atlanta and touched down on the runway at South Korea’s main gateway in Incheon.”Everything at Atlanta went smoothly,” a foreign ministry official told AFP on Friday, ahead of the workers’ arrival at around 3:25 pm (0625 GMT).”The plane departed as scheduled with the planned number of passengers.”Asia’s fourth-largest economy maintains multiple plants in the United States, and has heeded Washington’s push to onshore manufacturing and boost investment in America. The Georgia raid was the largest single-site operation conducted since US President Donald Trump launched a sweeping immigration crackdown, a top political priority since he returned to office in January.Experts say most of the detained South Korean workers were likely on visas that do not permit hands-on construction work.At the Incheon airport, people were seen holding a satirical placard depicting President Trump in an ICE uniform, wearing a gun, alongside the words, “We’re friends, aren’t we?”One older man, who was not related to the workers, also staged a protest against the raid, holding a picket that read: “You told us to invest, only to arrest us! Is this how you treat an ally?”President Lee Jae Myung called the raid “bewildering” and noted it could have a chilling effect on future investment. He added that Seoul was negotiating with Washington “to ensure that visa issuance for investment-related purposes operates normally”. At the Hyundai factory site, construction will now be set back due to labour shortages, Chief Executive Officer Jose Munoz said.”This is going to give us minimum two to three months delay, because now all these people want to get back,” he said.”Then you need to see how can you fill those positions. And, for the most part, those people are not in the US.”The Korean Confederation of Trade Unions (KCTU), one of the country’s largest umbrella union groups, called for an apology from Trump and for Seoul to halt US investment plans.”The Trump administration’s excessive mass arrests and detentions were a clear violation of human rights,” it said in a statement sent to AFP.”The KCTU stands in full solidarity with the workers returning today and strongly urges President Trump to issue an official apology and calls for (South Korea’s) suspension of investments in the US.”- Minimise impact -LG Energy Solution — which said 47 of its employees were arrested, along with about 250 people working for its contractor — thanked the Seoul government for its support.Seoul sent a task force and flew in top officials to negotiate, with a focus on ensuring that workers would not suffer repercussions should they seek to re-enter the United States.”We are especially grateful for their exceptional efforts… for their meticulous attention to addressing various concerns, including ensuring no disadvantages upon re-entry,” the firm said in a statement sent to AFP.Images of the workers being chained and handcuffed during the raid caused widespread alarm in South Korea, and Seoul said the government had negotiated to make sure the workers were not handcuffed again as they were repatriated.The raid came less than a month after Trump welcomed Lee to the White House.The site of the raid is a $4.3 billion venture to build a battery cell manufacturing facility in Georgia.Many South Korean companies bring their own workforce during project development periods, with industry sources telling AFP it is common practice to use visa workarounds to avoid project delays.LG said it remained committed to its US projects, adding that it was also working to minimise “any business impact resulting from this incident”.

Hundreds of South Korean workers were headed back to Seoul on Friday after their detention in a US immigration raid that Hyundai warned will delay completion of its battery factory. South Korean workers accounted for most of the 475 people arrested last week at the Hyundai-LG battery plant under construction in Georgia, prompting tense negotiations between Seoul and Washington, staunch security allies.A specially chartered Korean Air Boeing 747-8I carrying 316 South Koreans and 14 foreign employees departed Atlanta’s Hartsfield-Jackson International Airport on Thursday, Seoul’s foreign ministry said.”Everything at Atlanta went smoothly,” a foreign ministry official told AFP on Friday, ahead of the workers’ expected arrival at 2:00 pm (0500 GMT).”The plane departed as scheduled with the planned number of passengers.”The Georgia raid was the largest single-site operation conducted since US President Donald Trump launched a sweeping immigration crackdown, a top political priority since he returned to office in January.Experts say most of the detained South Korean workers were likely on visas that do not permit hands-on construction work.President Lee Jae Myung called the raid “bewildering” and noted it could have a chilling effect on future investment. He added that Seoul was negotiating with Washington “to ensure that visa issuance for investment-related purposes operates normally”. Asia’s fourth-largest economy maintains multiple plants in the United States, and has heeded Washington’s push to onshore manufacturing and boost investment in America. At the Hyundai factory site, construction will now be set back due to labour shortages, Chief Executive Officer Jose Munoz said.”This is going to give us minimum two to three months delay, because now all these people want to get back,” he said.”Then you need to see how can you fill those positions. And, for the most part, those people are not in the US.”The Korean Confederation of Trade Unions (KCTU), one of the country’s largest umbrella union groups, called for an apology from Trump and for Seoul to halt US investment plans.”The Trump administration’s excessive mass arrests and detentions were a clear violation of human rights,” it said in a statement sent to AFP.”The KCTU stands in full solidarity with the workers returning today and strongly urges President Trump to issue an official apology and calls for (South Korea’s) suspension of investments in the US.”- Minimise impact -LG Energy Solution — which said 47 of its employees were arrested, along with about 250 people working for its contractor — thanked the Seoul government for its support.Seoul sent a task force and flew in top officials to negotiate, with a focus on ensuring that workers would not suffer repercussions should they seek to re-enter the United States.”We are especially grateful for their exceptional efforts… for their meticulous attention to addressing various concerns, including ensuring no disadvantages upon re-entry,” the firm said in a statement sent to AFP.Images of the workers being chained and handcuffed during the raid caused widespread alarm in South Korea, and Seoul said the government had negotiated to make sure the workers were not handcuffed again as they were repatriated.The raid came less than a month after Trump welcomed Lee to the White House.The site of the raid is a $4.3 billion venture to build a battery cell manufacturing facility in Georgia.Many South Korean companies bring their own workforce during project development periods, with industry sources telling AFP it is common practice to use visa workarounds to avoid project delays.LG said it remained committed to its US projects, adding that it was also working to minimise “any business impact resulting from this incident”.

Global stock markets rose on Thursday as US inflation data came in as anticipated, reinforcing the prospect of a Federal Reserve interest rate cut next week.Meanwhile, the European Central Bank held rates steady for a second consecutive meeting, as expected, and raised its forecasts for eurozone growth and inflation this year.US Labor Department data showed the consumer price index (CPI) picked up to 2.9 percent in August, as economists monitor the impact of President Donald Trump’s tariffs on the world’s biggest economy.The figure was in line with analysts’ expectations and is seen as unlikely to deter the Fed from cutting interest rates next week.While inflation is above the Fed’s two-percent target, recent weak jobs figures “have strengthened the likelihood of monetary policy easing,” said Richard Flax, chief investment officer at European asset manager Moneyfarm.Data released last week showed that the US economy added only 22,000 jobs in August, while revised figures showed job growth was significantly weaker than previously reported in the year through March.Separate data released on Thursday showed initial claims for jobless benefits rose by 27,000 to 263,000 last week, the highest level since October 2021.”The real news of the day sits with the weekly jobless claims,” said Art Hogan of B. Riley Wealth Management, who expects the Fed to lower interest rates by 75 basis points by the end of the year.”That’s just more evidence that we’re seeing weakness in the labor market,” Hogan said. “So, clearly, the Fed’s full employment mandate is front and center.”Official figures that showed producer prices falling in the world’s biggest economy last month helped reassure analysts that the inflationary effect of the tariffs on consumer prices will be modest and short-lived as well.”While a 2.9 percent CPI rate is not exactly dovish, the lack of feed-through from tariffs into the CPI report could ease Fed concerns about the future path of inflation,” said XTB research director Kathleen Brooks.”In the aftermath of this report, the dollar has done a 180-degree turn and is lower across the board,” and yields on US government bonds have fallen, she added.Wall Street’s three main indices closed at fresh records.European stocks also held onto gains following the ECB’s rate decision.The bank now expects the eurozone economy to expand by 1.2 percent this year, up from its previous forecast of a 0.9-percent expansion, with inflation to come in at 2.1 percent.In Asia, the Tokyo stock market hit a record high, helped by a 10-percent surge in the share price of tech investment titan SoftBank. Oil prices fell Thursday as ample supply of crude helped to offset this week’s escalation of tensions in the Middle East and over the Russia-Ukraine war.The International Energy Agency on Thursday said global oil supply hit a record high in August as the OPEC+ grouping and other countries ramped up production, with a looming surplus keeping prices in check.- Key figures at around 2015 GMT -New York – Dow: UP 1.4 percent at 46,108.00 points (close)New York – S&P 500: UP 0.9 percent at 6,587.47 (close)New York – Nasdaq Composite: UP 0.7 percent at 22,043.07 (close)London – FTSE 100: UP 0.8 percent at 9,297.58 (close) Paris – CAC 40: UP 0.8 percent at 7,283.52 (close)Frankfurt – DAX: UP 0.3 percent at 23,703.65 (close)Tokyo – Nikkei 225: UP 1.2 percent at 44,372.50 (close)Hong Kong – Hang Seng Index: DOWN 0.4 percent at 26,086.32 (close)Shanghai – Composite: UP 1.7 percent at 3,875.31 (close)Euro/dollar: UP at $1.1737 from $1.1696 on WednesdayPound/dollar: UP at $1.3580 from $1.3528 Dollar/yen: DOWN at 147.18 from 147.40 yen Euro/pound: DOWN at 86.43 pence from 86.46 penceBrent North Sea Crude: DOWN 1.7 percent at $66.37 per barrelWest Texas Intermediate: DOWN 2.0 percent at $62.37 per barrelburs-rl-bys/bgs

Global stock markets rose on Thursday as US inflation data that came in as expected reinforced the prospect of a Federal Reserve interest rate cut next week.Meanwhile, the European Central Bank held rates steady for a second consecutive meeting, as expected, and raised its forecasts for eurozone growth and inflation this year.Labor Department data showed the consumer price index (CPI) picked up to 2.9 percent in August, as economists monitor the impact of President Donald Trump’s tariffs on the world’s biggest economy.The figure was in line with analysts’ expectations and is seen as unlikely to deter the Fed from cutting interest rates next week.While inflation is above the Fed’s two-percent target, recent weak jobs figures “have strengthened the likelihood of monetary policy easing”, said Richard Flax, chief investment officer at European asset manager Moneyfarm.Data released last week showed that the US economy added only 22,000 jobs in August, while revised figures showed job growth was significantly weaker than previously reported in the year through March.Separate data released on Thursday showed initial claims for jobless benefits rose by 27,000 to 263,000 last week, the highest level since October 2021.”The real news of the day sits with the weekly jobless claims,” said Art Hogan of B. Riley Wealth Management, who expects the Fed to lower interest rates by 75 basis points by the end of the year.”That’s just more evidence that we’re seeing weakness in the labor market,” Hogan said. “So, clearly, the Fed’s full employment mandate is front and center.”Meanwhile official figures that showed producer prices falling in the world’s biggest economy last month helped reassure analysts that the inflationary effect of the tariffs on consumer prices will be modest and short-lived.”While a 2.9 percent CPI rate is not exactly dovish, the lack of feed-through from tariffs into the CPI report could ease Fed concerns about the future path of inflation,” said XTB research director Kathleen Brooks.”In the aftermath of this report, the dollar has done a 180-degree turn and is lower across the board,” and yields on US government bonds have fallen, she added.Wall Street’s three main indices struck fresh records following the data.European stocks held onto gains following the ECB’s rate decision.The bank now expects the eurozone economy to expand by 1.2 percent this year, up from its previous forecast of a 0.9-percent expansion, with inflation to come in at 2.1 percent.In Asia, the Tokyo stock market hit a record high, helped by a 10-percent surge in the share price of tech investment titan SoftBank. Oil prices fell Thursday as ample supply of crude helped to offset this week’s escalation of tensions in the Middle East and over the Russia-Ukraine war.The International Energy Agency on Thursday said global oil supply hit a record high in August as the OPEC+ grouping and other countries ramped up production, with a looming surplus keeping prices in check.- Key figures at around 1530 GMT -New York – Dow: UP 1.3 percent at 46,064.58 pointsNew York – S&P 500: UP 0.8 percent at 6,584.43New York – Nasdaq Composite: UP 0.7 percent at 22,039.77London – FTSE 100: UP 0.8 percent at 9,297.58 (close) Paris – CAC 40: UP 0.8 percent at 7,283.52 (close)Frankfurt – DAX: UP 0.3 percent at 23,703.65 (close)Tokyo – Nikkei 225: UP 1.2 percent at 44,372.50 (close)Hong Kong – Hang Seng Index: DOWN 0.4 percent at 26,086.32 (close)Shanghai – Composite: UP 1.7 percent at 3,875.31 (close)Euro/dollar: UP at $1.1739 from $1.1696 on WednesdayPound/dollar: UP at $1.3572 from $1.3528 Dollar/yen: DOWN at 147.19 from 147.40 yen Euro/pound: UP at 86.49 pence from 86.46 penceBrent North Sea Crude: DOWN 1.6 percent at $66.41 per barrelWest Texas Intermediate: DOWN 1.8 percent at $62.51 per barrelburs-rl/rlp

From “flying cars” to robots and self-driving buses, here are some of the innovations spotted at this week’s Munich auto fair, IAA Mobility, one of the world’s biggest:’Give cars wings’Chinese brands showcased their efforts to create “flying cars”, small electric aircraft powered by multiple rotors designed for short journeys.”We want to give the car wings,” said Wang Tan, co-founder of carmaker Xpeng’s aeronautical unit.Xpeng’s Land Aircraft Carrier, an electric car that contains a fold-out, two-seat electric aircraft, should go into mass production in 2026 and be on sale in China for less than 2 million yuan ($281,000).Uses include rescue from locations where access is difficult, such as in heavy traffic or from tall buildings, Wang said.GAC’s flying car unit Govy meanwhile showed off its AirCab, a two-seater self-driving electric aircraft with a top-speed of 120 km/h and a range of up to 30 kilometres.”It is quieter than a helicopter and better meets people’s needs,” Govy spokeswoman Li Shuhan said. “It’s also cheaper.”About 1,500 AirCabs are on order at 1.68 million yuan each.Robot dogs (and their batteries)Covered in yellow fur, and with big googly eyes and a red felt tongue, the Go2 robotic dog looks cute and cuddly — but it is more than just a gimmick.”For dangerous work you need robots”, said Todd Zhang from Eve Energy, the Chinese company that makes batteries for the Go2, which is built by another Chinese outfit, Unitree Robotics.”In the future we’ll send robotic dogs into dangerous environments rather than human beings.”Eve Energy also supplies German carmakers like BMW and Porsche, highlighting China’s grip on the supply chain for electric cars.Wolf on wheelsEager to show that Europeans can innovate too, Austrian Wolfgang Podleiszek is working on a funky two-wheeled electric car that steers like a segway and needs the driver to lean into corners.”We’ve tried to send a signal for Europe, that we can once again dream and do something new and innovative,” he said.Podleiszek founded Wolf eMobility last year, and was on the hunt for investors at the motor show to build a prototype.”Once people can try it out and see just how fun it is, I think the rest will follow,” he said.But his small firm is in the sights of German giant Volkswagen, who have taken the company to court on the grounds that “Wolf” in German sounds too similar to Volkswagen’s Golf car.But Podleiszek says “our chances are not bad” in the dispute.New buses for older peopleCompanies including Germany’s Holon and Estonia’s Auve Tech displayed small self-driving buses, designed for routes where larger buses with drivers could be too expensive.Auve Tech has 25 vehicles on the road, 20 of which are in Japan, co-founder Johannes Mossov told AFP, helped by a “strong push” from the government there.”It’s logical because of the ageing population,” he said. “People need public transport to be more accessible for people who might not want to drive their personal car or walk long distances.””Europe will be similar in 10 to 15 years,” he added.Robot people Chinese electric-vehicle maker Xpeng was showcasing its humanoid robot, called Iron, at the fair.Over 30 Irons are currently in training, mostly on the carmaker’s production line, although some also help out with showroom sales.”We hope we can let robots work on the production line by the end of this year,” Shi Xiaoxin, Xpeng’s head of robotics, told AFP.And by the end of next year, they will likely be meeting and greeting customers, he said.Iron is trained using motion sensors worn by employees, which gather data on human movement. 

European and Asian stock markets rose Thursday as traders awaited more US inflation data and the European Central Bank’s latest decision on interest rates.The dollar gained versus the euro and other main rivals.An update on the US consumer price index is due Thursday, one day after official figures showed producer prices falling in the world’s biggest economy.Together with recent weak US jobs numbers, analysts expect the Federal Reserve to cut interest rates before the end of the year. Thursday’s data should provide further clues over by how much the Fed intends to reduce borrowing costs at its September meeting.”A softer-than-expected set of numbers could fuel bets of a jumbo Fed cut next week to support a weakening jobs market,” noted Ipek Ozkardeskaya, senior analyst at Swissquote Bank.Ahead of the US inflation report, the European Central Bank is expected to hold its key interest rate steady at two percent for its second straight meeting, with eurozone inflation under control and trade tensions having eased.Wall Street’s S&P 500 hit a fresh record high Wednesday thanks to a surge in the share price of Oracle.The software giant projected huge revenue growth as it prospers from an investment boom in artificial intelligence.In Asia, the Tokyo stock market hit a record high, helped by a 10-percent surge in the share price of tech investment titan SoftBank. Oil prices fell Thursday as ample supply of crude helps to offset this week’s escalation of tensions in the Middle East and over the Russia-Ukraine war.The International Energy Agency on Thursday said global oil supply hit a record high in August as OPEC+ and other countries ramped up production, with a looming surplus keeping prices in check.- Key figures at around 1050 GMT -London – FTSE 100: UP 0.5 percent at 9,274.16 pointsParis – CAC 40: UP 0.8 percent at 7,825.89Frankfurt – DAX: UP 0.2 percent at 23,674.47Tokyo – Nikkei 225: UP 1.2 percent at 44,372.50 (close)Hong Kong – Hang Seng Index: DOWN 0.4 percent at 26,086.32 (close)Shanghai – Composite: UP 1.7 percent at 3,875.31 (close)New York – Dow: DOWN 0.5 percent at 45,490.92 (close)Euro/dollar: DOWN at $1.1681 from $1.1696 on WednesdayPound/dollar: DOWN at $1.3504 from $1.3528 Dollar/yen: UP at 147.96 from 147.40 yen Euro/pound: UP at 86.47 pence from 86.46 penceBrent North Sea Crude: DOWN 0.7 percent at $67.02 per barrelWest Texas Intermediate: DOWN 0.8 percent at $63.14 per barrelburs-bcp/rl

Checking out an electric vehicle made by China’s BYD at the Munich auto show, German designer Tayo Osobu was impressed by the interior and said she would consider buying one.”And why not?,” said the 59-year-old from Frankfurt, in a country where domestic titans Volkswagen, BMW and Mercedes-Benz have long dominated.”If they are sold here, it means they meet European standards.”At the IAA auto fair in the German city this week, Chinese electric vehicle (EV) makers were out in force, highlighting the determination of the country’s fast-growing car giants to make inroads into Europe.Some 100 Chinese auto companies flocked to Munich, out of a total 700 exhibitors at the biennial show, ranging from big-name manufacturers to smaller suppliers and start-ups.While they still lag far behind Europe’s long-established carmakers in terms of market share on the continent, firms from the world’s number two economy have been gaining ground with their technology-packed EVs.Leading the pack is giant BYD, whose sales in Europe surged by 250 percent in the first half of the year. In Munich, the manufacturer was showcasing flagship models like the Dolphin Surf, a small EV with a starting price of around 20,000 euros ($23,400) — cheaper than many offerings from European carmakers.Volkswagen, Europe’s biggest automaker, in contrast has seen sales and profits fall in the face of fierce competition and weak demand, prompting it to announce plans for mass layoffs in Germany. And American EV pioneer Tesla, which was not present at the show in Munich, has also seen its market share drop — in part because many consumers have been put off by its boss Elon Musk’s support for far-right political parties.- EU tariffs – Chinese carmakers have grown rapidly as they have benefited from lower labour costs, generous government support and strong consumer demand for their high-tech models in the world’s biggest auto market, according to experts. “What has changed in five years is that, at a lower price, the Chinese are now on par in terms of technology and quality in many respects,” said Stefan Bratzel, director of the Center of Automotive Management in Germany. To combat the influx of Chinese cars and protect European manufacturers, the EU last year slapped hefty new tariffs on Chinese-made EVs over what the bloc said were unfair state subsidies.But sales of Chinese electric cars have continued to grow, and BYD looks set to skirt the levies — its first European factory, in Hungary, will start production later this year.Bratzel however said it was “too early” to talk about an invasion. Chinese carmakers still need to establish “a relationship of trust” with European consumers and build up networks of dealerships and after-sales services, he said.There was scepticism about Chinese cars among some of those attending the Munich fair.”If you drive a Chinese car, which garage would you go to if there are problems?” said Pamina Lohrmann, a 22-year-old German woman, at the Volkswagen stand where an old model of the popular Polo was on display.”I grew up with German brands, they appeal to me more.” – European ‘heritage, legacy’ -Despite such concerns, some Chinese carmakers, such as Xpeng, are hoping to attract a tech-savvy, younger demographic.President Brian Gu said the manufacturer was aiming for “the first wave of tech enthusiasts”.Europe’s storied carmakers are fighting back, hoping their trustworthy reputations, built over many decades, will stand them in good stead.Among a series of more affordable EVs unveiled by Volkswagen in Munich this week was one named “ID.Polo”, aiming to capitalise on the popularity of its classic small car.European carmakers are also adopting new battery technology and looking at using more Chinese components in their vehicles, according to industry expert Matthias Schmidt.They aim to focus on their “heritage, legacy and DNA,” said Schmidt, adding that these are characteristics that “Chinese new market entrants simply don’t have”. 

Mexico, under pressure not to serve as a back door for Chinese goods entering the United States, has proposed a 50 percent duty on car imports from the Asian giant — up from 15-20 percent.The initiative, contained in a bill submitted by the government to Congress, seeks to assuage US President Donald Trump — who has repeatedly urged trading partners to increase duties on China — while also bolstering Mexico’s industrial sector.The White House has said Chinese producers are abusing a free-trade deal between the United States, Mexico and Canada to send goods northward over the Mexican border tariff-free.Beijing criticised the proposed tariffs on Thursday, with a foreign ministry spokesman saying, without mentioning the United States, that China “firmly opposes any coercion.”Mexican President Claudia Sheinbaum has also complained of the impact of Chinese imports on domestic manufacturing, and the bill says the increased tariff will seek to protect 19 industrial sectors considered “strategic.”It also proposes raising tariffs on other countries with which Mexico has no trade agreement.Mexico replaced China in 2023 as the United States’ largest trading partner, with the Latin American country’s northern neighbor buying more than 80 percent of its exports.It sends nearly three million automobiles to the United States a year, including cars and trucks assembled by US auto companies in Mexico.China said it opposed any restriction that “undermines China’s legitimate rights and interests.””China attaches great importance to the development of China-Mexico relations, and hopes that Mexico will move forward in the same direction with China,” Lin told a regular news briefing in Beijing on Thursday.- Improve trade balance -Light vehicle imports from China would be subject to a 50 percent tariff, and auto parts between 10 and 50 percent, if the bill is approved.The bill, announced by the economy ministry Wednesday, said the changes sought to “protect the national industry in strategic sectors, replace imports from Asia with domestic production” and “improve Mexico’s trade balance.”The initiative should protect 325,000 jobs in strategic industries and create thousands more, the ministry said.Two out of every 10 light vehicles sold in Mexico are Chinese, according to official data. Sales in the sector grew by 10 percent last year.Several auto giants, including America’s General Motors and Ford, Germany’s Volkswagen and Japan’s Nissan, Honda, and Toyota, have factories in Mexico.According to the wording of the bill, South Korea, India, Indonesia, Russia, Thailand and Turkey would also be affected by the tariff increases.Trump has imposed a 25 percent tariff on car imports, with exemptions for vehicles with US content assembled in Mexico. Sheinbaum’s ruling party holds a majority in Congress, and the bill is likely to pass.

Asian and European equities mostly rose Thursday as investors built on this week’s rally after US data ramped up expectations for a string of interest rate cuts.Markets have enjoyed a healthy run in recent months — with some hitting record highs — on growth optimism that the Federal Reserve will resume its monetary easing process as figures indicate the world’s top economy is slowing.Those bets ramped up Friday on a report showing jobs creation was well below forecasts, while another this week revealed there were more than 900,000 fewer new posts than thought in the 12 months through March.On Wednesday, the Department of Labor said the producer price index (PPI) fell on-month in August for the first time since April, confounding forecasts for a rise. July’s figure was also revised down.The data soothed worries that US President Donald Trump’s tariff war would reignite inflation — as many have warned — and gave the Fed room to cut rates and address weakness in the jobs market.Focus is now on the more crucial consumer price index report due Thursday, which could play a major role in how many cuts the Fed makes, and how big they are.The PPI reading was “a red carpet unfurled straight to the September Federal Open Market Committee, with (boss Jerome) Powell cast as the reluctant guest of honour”, wrote SPI Asset Management’s Stephen Innes.”What markets heard wasn’t just a tick lower in input prices; it was confirmation that the worst inflation ghost stories aren’t materialising. Producers aren’t shoving tariffs straight onto consumers; they’re eating some of it to stay competitive.”He added that if the consumer price figure “comes in tame, the conversation tilts from a careful quarter-point shuffle to the possibility of a half-point swing”.Vincenzo Vedda, global chief investment officer at DWS, predicted five rate cuts by September 2026.Wednesday’s figures helped push the S&P 500 to another record high on Wall Street, and most of Asia followed suit.Tokyo piled on more than one percent to a second successive record, helped by a 10 percent surge in tech investment titan SoftBank to its own record. The firm’s gains came after its subsidiary Arm announced a new AI platform. Seoul also hit another fresh peak, while Shanghai, Singapore, Taipei, Mumbai and Bangkok also rose.Jakarta jumped after Indonesia’s government said it plans to inject around $12 billion into the economy. The gains briefly pushed it back above Monday’s close, having tumbled Tuesday after President Prabowo Subianto removed finance minister Sri Mulyani Indrawati following anti-government protests.London and Paris rose while Frankfurt was flat but there were losses in Hong Kong, Sydney, Wellington and Manila.- Key figures at around 0715 GMT -Tokyo – Nikkei 225: UP 1.2 percent at 44,372.50 (close)Hong Kong – Hang Seng Index: DOWN 0.4 percent at 26,086.32 (close)Shanghai – Composite: UP 1.7 percent at 3,875.31 (close)London – FTSE 100: UP 0.5 percent at 9,270.32 Euro/dollar: DOWN at $1.1693 from $1.1696 on WednesdayPound/dollar: DOWN at $1.3517 from $1.3528 Dollar/yen: UP at 147.78 from 147.40 yen Euro/pound: UP at 86.50 pence from 86.46 penceWest Texas Intermediate: DOWN 0.2 percent at $63.52 per barrelBrent North Sea Crude: DOWN 0.2 percent at $67.36 per barrelNew York – Dow: DOWN 0.5 percent at 45,490.92 (close)