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Global stocks retreated on Tuesday after a series of market-rattling announcements by US President Donald Trump, including an unusual move to fire a central bank official and threats to impose new export controls and tariffs.Traders had been riding a wave of confidence since Friday’s speech by US Federal Reserve Chairman Jerome Powell, which suggested coming interest rate cuts in the world’s largest economy.But the upward flurry appeared to die out on Wall Street on Monday as attention turned to this week’s earnings report from AI chip giant Nvidia — a bellwether for the industry as concerns over a tech bubble mount.Asian markets notched mostly moderate losses on Tuesday, tracking drops made the previous day in New York and Europe.Hong Kong’s main index recorded one of the more pronounced slides, finishing 1.2 percent lower.Tokyo, Shanghai, Seoul and Sydney were also down. Taipei was up slightly.Morning trading in Europe saw declines in London and Frankfurt, while Paris plummeted more than two percent on fears of a French political crisis ahead of a crucial confidence vote next month.Also weighing on investors’ minds was Trump’s Monday evening announcement in the United States that he was removing Federal Reserve governor Lisa Cook, citing allegations of false statements on her mortgage agreements.The highly unusual step — which will likely face a legal challenge — comes as worries grow about the independence of the central bank, fuelled by Trump’s repeated public demands to Powell to lower interest rates.The dollar fell following the news, then mostly recovered after Cook issued a statement vowing to continue in her role.Gold — widely perceived as a safe storage of wealth — advanced.Trump’s announcement “shows how increasingly politicised the central bank is becoming”, Neil Wilson, UK investor strategist at Saxo Markets, wrote in a note.”The question for markets right now is about the September meeting but be in no doubt that we are witnessing a regime shift like we have not seen in decades,” he added, referring to an upcoming Fed gathering at which officials will make a decision on rates.Trump also vowed Monday evening to impose “substantial additional tariffs” on shipments from countries that do not cancel digital taxes and regulations, which he said were “designed to harm” US technology.He added a threat to introduce export restrictions on “highly protected (US) technology and chips”, without offering further details.Eyes are now turning toward a US GDP report on Thursday and a key inflation gauge coming on Friday for clues on how far interest rates might fall — or not — in the coming months.Oil prices crept down on Tuesday, walking back increases made in recent days amid speculation about a peace deal to end the war in Ukraine.- Key figures at around 0830 GMT -Tokyo – Nikkei 225: DOWN 1.0 percent at 42,394.40 (close)Hong Kong – Hang Seng Index: DOWN 1.2 percent at 25,524.92 (close)Shanghai – Composite: DOWN 0.4 percent at 3,868.38 (close)London – FTSE 100: DOWN 0.6 percent at 9,263.86Euro/dollar: DOWN at $1.1617 from $1.1624 on MondayPound/dollar: UP at $1.3467 from $1.3460Dollar/yen: DOWN at 147.56 yen from 147.70 yenEuro/pound: DOWN at 86.26 pence from 86.35 penceWest Texas Intermediate: DOWN 0.9 percent at $64.19 per barrelBrent North Sea Crude: DOWN 0.8 percent at $68.25 per barrelNew York – Dow: DOWN 0.8 percent at 45,282.47 (close)

Indian exports to the United States will face some of the highest tariffs in the world this week, barring a last-minute reversal from President Donald Trump. Trump has tied issues of war and peace to trade, threatening to slap 50 percent duties on New Delhi in retaliation for its continued purchases of Russian oil — which Washington argues help finance Moscow’s war in Ukraine.The tariff offensive has rattled US-India ties, given New Delhi a new incentive to repair relations with Beijing, and carries major consequences for the world’s fifth-largest economy.Trump issued a three-week deadline on August 6, which is expected to take effect on Wednesday morning in India.- How bad will it be? -The United States was India’s top export destination in 2024, with shipments worth $87.3 billion.Analysts at Nomura warn that 50 percent duties would be “akin to a trade embargo”, devastating smaller firms with “lower value add and thinner margins”. Elara Securities’s Garima Kapoor said no Indian product can “stand any competitive edge” under such heavy import taxes.Economists estimate tariffs could shave 70 to 100 basis points off India’s GDP growth this fiscal year, dragging growth below six percent, the weakest pace since the pandemic.Exporters in textiles, seafood and jewellery are already reporting cancelled US orders and losses to rivals such as Bangladesh and Vietnam, raising fears of heavy job cuts.A small reprieve: pharmaceuticals and electronics, including iPhones assembled in India, are exempt for now.S&P estimates exports equivalent to 1.2 percent of India’s GDP will be hit, but says it will be a “one-off” shock that “will not derail” the country’s long-term growth prospects.- Will either side blink? -There’s no sign yet. In fact, since the US and Russian presidents met in Alaska, Washington has ramped up criticism of India.”India acts as a global clearinghouse for Russian oil, converting embargoed crude into high-value exports while giving Moscow the dollars it needs,” White House trade adviser Peter Navarro wrote in the Financial Times earlier this month, slamming the country’s refiners for “profiteering”.Indian Foreign Minister Subrahmanyam Jaishankar fired back, arguing India’s purchases helped stabilise global oil markets — and were done with Washington’s tacit approval in 2022.He argued that both the United States and Europe buy refined oil and associated products from India.”If you have a problem buying oil from India, oil or refined products, don’t buy it”, he said, speaking in New Delhi. “Nobody forced you to buy it — but Europe buys, America buys.”Jaishankar said that, until Trump’s ultimatum, there had been “no conversations” asking them to stop buying Moscow’s oil.Trade trackers at Kpler say India’s stance will become clearer only in September, as most August shipments were contracted before Trump’s threats.But experts say India is in a tricky situation.India needs “considerable ingenuity and flexibility” to escape “what appears to be a no-win situation”, said Nandan Unnikrishnan of New Delhi-based Observer Research Foundation.Washington, Unnikrishnan argued, is telling India: “We think that you are the weakest link in the Russia-Ukraine geopolitics chain”.- What can India do? -New Delhi has sought to bolster its economy while deepening ties with both BRICS partners and regional rivals.Jaishankar flew to ally Moscow, producing pledges to ease barriers to bilateral trade, while Prime Minister Narendra Modi is preparing his first visit to China in seven years to repair long-frosty relations.Domestically, Indian media reports that the government is working on a $2.8 billion package for exporters, a six-year programme aimed at easing liquidity concerns.Modi has also proposed tax cuts on everyday goods to spur spending and cushion the economy.- What is blocking a trade deal? -Talks have stumbled over agriculture and dairy.Trump wants greater US access, while Modi is determined to shield India’s farmers, a huge voter bloc.Indian media reports suggested that US negotiators cancelled a planned late-August trip to India. That sparked speculation that discussions had broken down.Jaishankar, however, says talks are continuing, adding drily: “Negotiations are still going on in the sense that nobody said the negotiations are off,” he said. “And people, people do talk to each other.”

Asian stocks retreated Tuesday after a series of market-rattling announcements by US President Donald Trump, including the unusual firing of a central bank official and threats to impose export controls on microchips.Traders had been riding a wave of confidence since Friday’s speech by US Federal Reserve Chairman Jerome Powell, which suggested coming interest rate cuts in the world’s largest economy.But the upward flurry appeared to die out Monday on Wall Street as attention turned back to this week’s earnings report from AI chip giant Nvidia — a bellwether for the industry as concerns over a tech bubble mount.Asian markets started Tuesday broadly lower, tracking drops made the previous day in New York and Europe.Tokyo’s main index saw the largest fall, down over one percent just ahead of the midday break. Benchmarks in Hong Kong, Shanghai, Seoul, Taipei and Sydney were also down.Weighing on investors’ minds was Trump’s Monday evening announcement in the United States that he was removing Federal Reserve governor Lisa Cook, citing allegations of false statements on her mortgage agreements.The highly unusual step comes as worries grow about the independence of the central bank, fuelled by Trump’s repeated public demands on Powell to lower interest rates.The dollar fell following the news, while gold — widely perceived as a safe storage of wealth — advanced.”The independence of the Fed, already a fraying banner, looks tattered against the gusts of politics,” wrote Stephen Innes of SPI Asset Management in a note.”What’s left is a central bank suddenly with a missing vote, a looming inflation test on Friday and a president willing to make personnel changes with the flair of a ringmaster cracking the whip,” he added.Eyes are now turning toward a US GDP report on Thursday and a key inflation gauge coming on Friday for clues on how far interest rates might fall — or not — in the coming months.Trump also vowed Monday evening to impose “substantial additional tariffs” on shipments from countries that do not cancel digital taxes and regulations, which he said were “designed to harm” US technology.He added a threat to introduce export restrictions on “highly protected (US) technology and chips”, without offering further details.Oil prices crept down Tuesday, walking back increases made in recent days amid speculation about a peace deal to end the war in Ukraine.- Key figures at around 0215 GMT -Tokyo – Nikkei 225: DOWN 1.0 percent at 42,365.52Hong Kong – Hang Seng Index: DOWN 0.3 percent at 25,740.95Shanghai – Composite: DOWN 0.2 percent at 3,875.732Euro/dollar: UP at $1.1644 from $1.1624 on MondayPound/dollar: UP at $1.3475 from $1.3460Dollar/yen: DOWN at 147.42 yen from 147.70 yenEuro/pound: UP at 86.42 pence from 86.35 penceWest Texas Intermediate: DOWN 0.5 percent at $64.49 per barrelBrent North Sea Crude: DOWN 0.4 percent at $68.51 per barrelNew York – Dow: DOWN 0.8 percent at 45,282.47 (close)London – FTSE 100: CLOSED Monday for Summer Bank Holiday

Bolivian right-wing presidential hopeful Jorge Quiroga on Monday vowed to scrap billion-dollar lithium extraction deals struck by the outgoing government with Russia and China if elected leader.”We don’t recognize (outgoing President Luis) Arce’s contracts… Let’s stop them, they won’t be approved,” the US-educated Quiroga, who has vowed a major shake-up in Bolivia’s alliances if elected president in October, told AFP in an interview.Quiroga came second in the first round of Bolivia’s August 17 presidential election with 26.7 percent, behind center-right senator Rodrigo Paz on 32 percent.The Movement Towards Socialism (MAS), in power since 2006, suffered a historic rout, with voters punishing the party founded by iconic ex-president Evo Morales over a deep economic crisis.Quiroga and Paz now face a second-round duel for the presidency on October 19.The fate of Bolivia’s lithium deposits — among the world’s largest of the metal used in smartphone and electric vehicle batteries — is a hot topic in the campaign.The so-called Lithium Triangle, spanning parts of Bolivia, Chile and Argentina, is home to 60 percent of the world’s lithium reserves, according to the US Geological Survey.But in the case of Bolivia, nearly all of it is still trapped underground, at an altitude of 3,600 meters (12,000 feet) in the vast Salar de Uyuni salt flat, one of the country’s top tourist attractions.In 2023 and 2024 Arce’s government signed deals with Russia’s Uranium One and China’s CBC, a subsidiary of battery manufacturer CATL, to extract lithium from the salt pan.Worth a combined $2 billion, the deals were intended to help Bolivia catch up in the race to mine the mineral.But they were blocked in Congress by infighting in the ruling party. Indigenous groups meanwhile went to court to have them scrapped on environmental grounds.Quiroga claimed Uranium One and CATL were selected “behind the back” of local authorities and said he would propose a new law on mineral deposits that precluded “favoritism.”- From gas to lithium -Bolivia enjoyed over a decade of strong growth under Morales (2006-2019), who nationalized the gas sector and ploughed the proceeds into anti-poverty programs.But underinvestment in exploration caused gas revenues to implode, eroding the government’s foreign currency reserves and leading to acute shortages of imported fuel, widely-used dollars and other basics.Inflation rose to 24.8 percent year-on-year in July, its highest level since at least 2008, causing voters to desert the left in droves.Quiroga, who served briefly as president in the early 2000s, has pledged a radical overhaul of Bolivia’s big-state economic model if elected, including steep spending cuts.His challenger Paz, who has campaigned as a moderate, on Monday ruled out strict austerity measures to rescue the country from the brink of bankruptcy.”There will be a stabilization process, we’re not calling it an adjustment,” the 57-year-old senator told AFP.He nonetheless revealed he would cut $1.2 billion in annual fuel subsidies — a major drain on the public purse — and save another $1.3 billion in unspecified “superfluous spending.”Paz added that he would create tax incentives to get Bolivians to bank any dollars hidden under their mattress but would not initially seek an international bailout, as proposed by Quiroga.”People understand that we have to get our house in order first,” said Paz, whose father Jaime Paz Zamora led Bolivia from 1989 to 1993.

Stocks mostly edged downwards on Monday, after rallies in Europe and the United States fueled by comments from the US central bank chief last week where he indicated the possibility of lower interest rates.Investors were also keenly awaiting an earnings report from dominant AI chip company Nvidia due on Wednesday. The firm’s stock fell sharply last week as investors worried that enthusiasm for AI may be overcooked, which helped drag down the buoyant tech industry.But on Monday, Nvidia shares climbed 1.0 percent.”AI has been the primary driver of the market this year,” said Christopher Low of FHN Financial, adding that Nvidia stock is particularly important as investors have used it to wager on the AI industry more broadly.Separately, Federal Reserve chief Jerome Powell told central bankers at an annual conference in Wyoming last Friday that “the balance of risks appears to be shifting” in the United States.In particular, he noted that risks to employment are rising and flagged the possibility they could materialize rapidly in the form of higher layoffs.Investors interpreted his remarks as a sure signal of a rate cut at the Fed’s meeting next month, as inflation has not shown signs of soaring in the wake of President Donald Trump’s tariffs blitz.”Powell basically delivered the 25 basis points before the September meeting,” said Ipek Ozkardeskaya, an analyst at Swissquote Bank.While global markets soared initially and Asian markets kept their gains, Wall Street’s major indexes closed lower.European indices fell back after a morning flurry, with a late slump on the Paris exchange after an announcement by Prime Minister Francois Bayrou that he would seek a vote of confidence in the National Assembly in a bid to push through his budget.All eyes now turn toward a US GDP report on Thursday and a key inflation gauge coming on Friday for clues on how far interest rates might fall — or not — in the coming months.In corporate news, shares in Danish wind group Orsted plunged 16 percent after the US government halted construction at an offshore site that is 80 percent complete.It was the latest move by Trump’s administration against wind power and other renewables in favor of oil and gas.France’s Valneva tumbled 22 percent following a US suspension of its chikungunya vaccine over “serious” side-effects, raising doubts about one of the few vaccines for the virus.And stocks in sportswear manufacturer Puma leapt 15 percent after reports suggested France’s Pinault family were trying to sell their 29 percent stake in the firm.- Key figures at around 2040 GMT -New York – Dow: DOWN 0.8 percent at 45,282.47 points (close)New York – S&P 500:  DOWN 0.4 percent at 6,439.32 (close)New York – Nasdaq: DOWN 0.2 percent at 21,449.29 (close)Paris – CAC 40: DOWN 1.6 percent at 7,843.04 points (close)Frankfurt – DAX: DOWN 0.4 percent at 24,273.12 (close)London – FTSE 100: CLOSED for Summer Bank HolidayTokyo – Nikkei 225: UP 0.4 percent at 42,807.82 (close)Hong Kong – Hang Seng Index: UP 1.9 percent at 25,829.91 (close)Shanghai – Composite: UP 1.5 percent at 3,883.56 (close)Euro/dollar: DOWN at $1.1624 from $1.1722 on FridayPound/dollar: DOWN at $1.3460 from $1.3523Dollar/yen: UP at 147.70 yen from 146.94 yenEuro/pound: DOWN at 86.35 pence from 86.69 penceWest Texas Intermediate: UP 1.8 percent at $64.80 per barrelBrent North Sea Crude: UP 1.6 percent at $68.80 per barrelburs-jxb-bys/jgc

Stocks slipped in European trading Monday as investors locked in gains fuelled by the clear shift toward lower rates by the US Federal Reserve, which helped Asian markets kick off the week with a rally.Fed chief Jerome Powell told central bankers at their annual conference in Wyoming last Friday that “the balance of risks appears to be shifting” toward signs of weakness in the world’s largest economy.Investors interpreted that as a sure signal of a rate cut at the Fed’s meeting next month, as inflation has not shown signs of soaring in the wake of President Donald Trump’s tariffs blitz.”Powell basically delivered the 25 basis points before the September meeting,” said Ipek Ozkardeskaya, an analyst at Swissquote Bank.Wall Street soared on the news ahead of the weekend, while the dollar fell since lower interest rates make the greenback less appealing to foreign investors.All eyes now turn toward a US GDP report on Thursday and a key inflation gauge coming on Friday for clues on how far rates might fall — or not — in the coming months.”The data — especially the inflation data — will tell if there could be further rate relief into the year-end,” Ozkardeskaya said. Asian markets benefited from the rally, with Tokyo rising almost half a percent while Hong Kong finished up 1.9 percent, boosted by a surge in Chinese tech giant Alibaba.European indices were broadly lower though London was closed for a public holiday, with many investors happy to take profits while awaiting Wednesday’s earning report from AI-chip heavyweight Nvidia.The stock fell sharply last week as investors worried that the enthusiasm for artificial intelligence may be overdone, which cast a pall over the wider tech sector after months of strong gains.In corporate news, shares in Danish wind group Orsted plunged 17 percent after the US government halted construction at an offshore site that is 80 percent complete.It was the latest move by Trump’s administration against wind power and other renewables in favour of oil and gas.France’s Valneva tumbled 23 percent following a US suspension of its chikungunya vaccine over “serious” side-effects, raising doubts about one of the few vaccines for the virus.Dutch coffee group JDE Peet’s jumped 17 percent after it accepted a 15.7 billion euro takeover bid from US drinks giant Keurig Dr Pepper (KDP).- Key figures at around 1115 GMT -Paris – CAC 40: DOWN 0.5 percent at 7,926.63 pointsFrankfurt – DAX: DOWN 0.2 percent at 24,327.12London – FTSE 100: CLOSED for Summer Bank HolidayTokyo – Nikkei 225: UP 0.4 percent at 42,807.82 (close)Hong Kong – Hang Seng Index: UP 1.9 percent at 25,829.91 (close)Shanghai – Composite: UP 1.5 percent at 3,883.56 (close)Euro/dollar: DOWN at $1.1690 from $1.1722 on FridayPound/dollar: DOWN at $1.3496 from $1.3523Dollar/yen: UP at 147.42 yen from 146.94 yenEuro/pound: DOWN at 86.62 pence from 86.69 penceWest Texas Intermediate: UP 0.6 percent at $64.06 per barrelBrent North Sea Crude: UP 0.5 percent at $67.58 per barrel

Asian markets kicked off the week with a rally on Monday, tracking gains made by Wall Street on Friday after the US central bank chief suggested coming interest rate cuts.Investors weighing the prospects of a September reduction had been closely eyeing the speech by Federal Reserve Chair Jerome Powell at an annual symposium in Jackson Hole, Wyoming.”The balance of risks appears to be shifting,” Powell said, noting a slump in employment even as inflation remains above target.He added that the “unusual” situation “may warrant adjusting our policy stance”.Wall Street stocks surged following Powell’s speech, rebounding from a tech sell-off earlier in the week. European markets also ticked upwards after the speech.During the first trading sessions in major Asian markets following the comments, stocks made notable gains.Tokyo rose almost half a percent on the day, while Hong Kong finished up 1.9 percent, boosted by a surge in Chinese tech giant Alibaba.Shanghai, Seoul and Taipei also rose. Sydney finished marginally higher.”By hinting that the Fed could cut even without pristine inflation numbers, (Powell) transformed caution into conviction,” Stephen Innes of SPI Asset Management wrote in a note Monday.”Expectations for a September cut now hover near certainty,” he added.Paris and Frankfurt were slightly down during early trading in Europe, paring back Friday gains. London was closed for a public holiday.Powell has come under intense public pressure this year from US President Donald Trump to lower rates.But the independent central bank has kept benchmark interest rates steady at a range of between 4.25 percent and 4.50 percent since its last reduction in December.In keeping rates unchanged, policymakers cited resilience in the labour market as they monitored the effects of Trump’s wide-ranging tariffs on the world’s biggest economy.Reacting to Friday’s news, the dollar fell against currencies such as the euro, pound and yen, as lower returns make the greenback less appealing to foreign investors.Oil prices crept up on Monday, adding to increases made last week as investors considered the potential for a peace deal in Ukraine more than three years after Russia’s invasion.Traders are now eagerly awaiting a quarterly earnings report from US chip juggernaut Nvidia on Wednesday, which is expected to shed light on how its strong push into artificial intelligence is faring.- Key figures at around 0830 GMT -Tokyo – Nikkei 225: UP 0.4 percent at 42,807.82 (close)Hong Kong – Hang Seng Index: UP 1.9 percent at 25,829.91 (close)Shanghai – Composite: UP 1.5 percent at 3,883.088 (close)Euro/dollar: DOWN at $1.1704 from $1.1722 on FridayPound/dollar: DOWN at $1.3506 from $1.3523Dollar/yen: UP at 147.30 yen from 146.94 yenEuro/pound: DOWN at 86.67 pence from 86.69 penceWest Texas Intermediate: UP 0.4 percent at $63.91 per barrelBrent North Sea Crude: UP 0.3 percent at $67.93 per barrelNew York – Dow: UP 1.9 percent at 45,631.74 (close)London – FTSE 100: UP 0.1 percent at 9,321.40 (Friday close)

Shares in heavily indebted China Evergrande Group were taken off the Hong Kong Stock Exchange on Monday, capping a grim reversal of fortune for the once-booming property developer.A committee at the bourse had decided earlier this month to cancel Evergrande’s listing after it failed to meet a July deadline to resume trading — suspended since early last year.The delisting on Monday marks the latest milestone for a firm whose painful downward spiral has become symbolic of China’s long-standing property sector woes.Once the country’s biggest real estate firm, Evergrande was worth more than $50 billion at its peak and helped propel China’s rapid economic growth in recent decades.But it defaulted in 2021 after years of struggling to repay creditors.A Hong Kong court issued a winding-up order for Evergrande in January 2024, ruling that the company had failed to come up with a suitable debt repayment plan.Liquidators have made moves to recover creditors’ investments, including filing a lawsuit against PwC and its mainland Chinese arm for their role in auditing the debt-ridden developer.The firm’s debt load is bigger than the previously estimated amount of $27.5 billion, according to a filing earlier this month attributed to liquidators Edward Middleton and Tiffany Wong.The statement added that China Evergrande Group was a holding company and that liquidators had assumed control of more than 100 companies within the group.Evergrande’s saga — and similar issues faced by other property giants including Country Garden and Vanke — have been closely followed by observers assessing the health of the world’s second-largest economy.After a decades-long construction boom fuelled by rapid urbanisation, China’s property sector began to show worrying signs in 2020, when Beijing announced new rules to limit excessive borrowing.With Evergrande’s default the following year and other complications across the industry continuing, a return to the boom years has proven elusive for policymakers.The crisis has also dampened consumer sentiment at a time when economists argue that China must shift towards a new growth model driven more by domestic spending rather than investment.New home prices in a grouping of 70 Chinese cities continued to drop in July, official data showed earlier this month.

Asian markets kicked off the week with a rally Monday morning, tracking gains made by Wall Street on Friday after the US central bank chief suggested coming interest rate cuts.Investors weighing the prospects of a September cut had been closely eyeing the speech by Federal Reserve Chair Jerome Powell at an annual symposium in Jackson Hole, Wyoming.”The balance of risks appears to be shifting,” Powell said, noting a slump in employment even as inflation remains above target.He added that the “unusual” situation “may warrant adjusting our policy stance”.Wall Street stocks surged following Powell’s speech, rebounding from a tech sell-off earlier in the week. European markets also ticked upwards.During the first trading sessions in major Asian markets following the comments, stocks made notable gains.Hong Kong’s main index was up nearly 1.3 percent one hour after opening, while benchmarks in Tokyo, Shanghai, Sydney, Seoul and Taipei also rose.”By hinting that the Fed could cut even without pristine inflation numbers, (Powell) transformed caution into conviction,” Stephen Innes of SPI Asset Management wrote in a note Monday.”Expectations for a September cut now hover near certainty,” he added.Powell has come under intense public pressure this year from US President Donald Trump to lower rates.But the independent central bank has kept benchmark interest rates steady at a range of between 4.25 percent and 4.50 percent since its last reduction in December.In keeping rates unchanged, policymakers cited resilience in the labor market as they monitored the effects of Trump’s wide-ranging tariffs on the world’s biggest economy.Reacting to Friday’s news, the dollar fell against currencies such as the euro, pound and yen, as lower returns make the greenback less appealing to foreign investors.Oil markets were nearly flat Monday, following price increases made last week as investors considered the potential for a peace deal in Ukraine more than three years after Russia’s invasion.Traders are now eagerly awaiting a quarterly earnings report from US chip juggernaut Nvidia on Wednesday, which is expected to shed light on how its strong push into artificial intelligence is faring.- Key figures at around 0215 GMT -Tokyo – Nikkei 225: UP 0.7 percent at 42,933.34Hong Kong – Hang Seng Index: UP 1.3 percent at 25,661.10Shanghai – Composite: UP 0.7 percent at 3,854.086Euro/dollar: DOWN at $1.1696 from $1.1722 on FridayPound/dollar: DOWN at $1.3493 from $1.3523Dollar/yen: UP at 147.47 yen from 146.94 yenEuro/pound: DOWN at 86.68 pence from 86.69 penceWest Texas Intermediate: FLAT at $63.65 per barrelBrent North Sea Crude: FLAT at $67.71 per barrelNew York – Dow: UP 1.9 percent at 45,631.74 (close)London – FTSE 100: UP 0.1 percent at 9,321.40 (close)

Indian Prime Minister Narendra Modi’s push to slash consumption taxes on everyday goods could deliver billions of dollars in annual relief and boost demand in an economy bracing for painful US tariffs, experts say.US President Donald Trump has threatened to double import duties on India from 25 to 50 percent to punish New Delhi for buying oil from Russia, saying the purchases help Moscow fund its invasion of Ukraine.The prospective measure has clouded the outlook for the world’s fifth-largest economy, with Indian exporters warning of plunging orders and severe job losses.New Delhi has called Washington’s move “unfair, unjustified and unreasonable” but is already seeking to cushion the blow, with Modi last week promising to “bring down the tax burden on the common man” during an annual speech to mark India’s independence.His proposed cuts to the goods and services tax (GST) would make everything from small cars to air conditioners cheaper for consumers, economists say.Currently, the tax operates under a complex four-tier structure, with rates ranging from five to 28 percent.Under Modi’s reforms, most goods would fall into just two tiers, taxed at either five or 18 percent.The Indian leader has called the change a “Diwali gift”, a reference to the annual Hindu festival of lights when consumers splurge on everything from gold and clothes to consumer electronics.- ‘Sizeable savings’ -Trump’s tariffs — and their impact on ordinary Indians — will hinge on how much progress is made towards a Russia-Ukraine peace deal, and whether New Delhi can secure alternative oil suppliers before the US president’s August 27 deadline.But experts say Modi’s tax reform could help shore up demand by reducing tax collections by between $13 billion and $17 billion.Analysts at Emkay Global Financial Services called the policy a “welcome reform towards boosting domestic consumption”.They estimated that about the vast majority of items currently subject to the top 28 percent rate would be taxed at 18 percent, while “nearly all” in the 12 percent tier would move into the five-percent bracket.Analysts at Motilal Oswal, an Indian financial services firm, said the changes would bring benefits to a wide range of sectors and “sizeable savings” to households.The fate of the proposal ultimately rests with the GST Council, which includes representatives from state governments and has struggled to achieve broad consensus in the past.If approved, the cuts would strain public finances, according to experts.However, they said, they could also help to offset tariff risks and burnish Modi’s credentials among the middle class.The proposal comes ahead of expected elections later this year in Bihar, a large, Hindu-majority state of 130 million people that is a key political battleground for Modi.”The popular economic narrative right now is that of Trump’s 50 percent tariffs and how the US-India relationship is seeing setbacks,” Deepanshu Mohan, economist at O.P. Jindal Global University, told AFP.”The GST readjustment is a strong response from Modi in that context. It’s Modi telling the middle class: ‘We are trying to make sure you have enough at your end,'” Mohan said.But, he added, it was also an acknowledgement that India’s economy had not worked for its “low middle-income class for some time”.- US-India trade talks – Although economists have called for an overhaul of the GST system for years, Modi’s surprise announcement comes as US-India ties hit a multi-decade low.Economists estimate that if the two countries fail to sign a trade deal, Trump’s tariffs could drag India’s GDP growth below six percent this fiscal year, lower than the central bank’s projections of 6.5 percent.New Delhi’s stance on Russian oil imports will become clearer by late September as most cargoes this month were contracted before Trump’s threats, according to trade intelligence firm Kpler.Kpler analyst Sumit Ritolia told AFP that while Indian refiners are showing “growing interest” in US, West African and Latin American crude, it was more indicative of “greater flexibility, not a deliberate pivot”.”Until there’s a clear policy shift or sustained change in trade economics, Russian flows remain a core part of India’s crude basket,” Ritolia said. As the clock ticks down on the tariff hike, the state of US-India trade negotiations remains uncertain.New Delhi says it is committed to striking a deal, but Indian media reports suggest US negotiators have postponed a planned late-August visit to the Indian capital.