Afp Business Asia

Wall Street stocks mostly fell Wednesday after US inflation data exceeded expectations, while the euro strengthened on signs Russia and Ukraine could be closer to a peace agreement.Major US indices began the day firmly in the red after January US consumer price index data showed inflation grew, raising questions about whether the Federal Reserve’s progress on bringing down prices was reversing.While both the Dow and S&P 500 dropped, they finished well above session lows. The Nasdaq mustered a small gain.”Equities were a lot more resilient than I would have expected given the news we had this morning,” said Jack Ablin of Cresset Capital.Still, US Treasury yields advanced, a sign investors see lower odds for Fed interest rate cuts.”Investors were looking for reassurance in this morning’s inflation report — and they didn’t get it,” said Bret Kenwell, US investment analyst at the trading platform eToro.He said the “higher-than-expected print further lowers the odds of rate cuts from the Fed this year and stokes investors’ reflationary fears.”Analysts warn that US President Donald Trump’s tariffs — and plans to slash taxes, regulations and immigration — risked reigniting inflation.”What makes today’s rise in CPI inflation data so precarious is that many believe this is just the beginning, as tariffs could push inflation even higher,” said Jochen Stanzl, chief market analyst at financial services firm CMC Markets.The dollar initially strengthened after the inflation report, but weakened later against the euro following news that Trump held talks with Russian President Vladimir Putin about immediately starting Ukraine peace talks.Later Wednesday, Ukrainian President Volodymyr Zelensky said he had had a “meaningful conversation” with Trump and that the leaders discussed ways to end Russia’s nearly three-year invasion of Ukraine.However, crude oil prices finished down more than two percent due in part to expectations for increased Russian oil output.- Heineken fizzes -In Asian markets, Hong Kong led gains thanks to another tech rally. In Europe, London and Frankfurt hit fresh record highs, with support coming from cuts to interest rates in Britain and the eurozone, as well as positive company earnings. Shares in Dutch brewer Heineken fizzed as traders cheered better-than-expected beer sales. The stock surged 14 percent, making it the biggest gainer on the Amsterdam market.But Chevron fell 1.6 percent after announcing it will cut 15 to 20 percent of its workforce as part of a reorganization to save money and to position the oil giant for the long-term.- Key figures around 2150 GMT -New York – Dow: DOWN 0.5 percent at 44,368.56 (close)New York – S&P 500: DOWN 0.3 percent at 6,051.97 (close)New York – Nasdaq: UP less than 0.1 points at 19,649.95 (close)London – FTSE 100: UP 0.3 percent at 8,807.44 (close)Paris – CAC 40: UP 0.2 percent at 8,042.19 (close)Frankfurt – DAX: UP 0.5 percent at 22,148.03 (close)Tokyo – Nikkei 225: UP 0.4 percent at 38,963.70 (close)Hong Kong – Hang Seng Index: UP 2.6 percent at 21,857.92 (close)Shanghai – Composite: UP 0.9 percent at 3,346.39 (close)Euro/dollar: UP at $1.0387 from $1.0307 on TuesdayPound/dollar: UP at $1.2446 from $1.2368Dollar/yen: UP at 154.39 yen from 152.00 yenEuro/pound: UP at 83.40 pence from 83.33 penceWest Texas Intermediate: DOWN 2.7 percent at $71.37 per barrelBrent North Sea Crude: DOWN 2.4 percent at $75.18 per barrelburs-jmb/jgc

US stock markets tumbled on Wednesday as an inflation reading came in hotter than expected, fanning fears that the Federal Reserve will keep interest rates higher for longer. Following days of attention on US President Donald Trump’s tariff moves, traders were focusing on the January consumer inflation data, which is set to play a role in the Fed’s next interest rate decision.”Investors were looking for reassurance in this morning’s inflation report — and they didn’t get it,” said Bret Kenwell, US investment analyst at eToro trading platform.He said the “higher-than-expected print further lowers the odds of rate cuts from the Fed this year and stokes investors’ reflationary fears”.The consumer price index (CPI) edged up to 3.0 percent in January from a year ago, after hitting 2.9 percent in December, official data showed. Analysts had expected inflation to ease to 2.8 percent.Wall Street’s three main indexes opened sharply in the red following the data’s release and only barely recovered some ground in morning trading.US President Donald Trump, who made tackling inflation and the cost of living a priority during his election campaign, blamed his predecessor Joe Biden for the unexpected uptick.He also reiterated his call for the Fed to cut rates, saying on his Truth Social platform that it “would go hand in hand with upcoming Tariffs!!!”- ‘Market volatility’ -Fed boss Jerome Powell on Tuesday repeated that the US central bank was in no hurry to lower borrowing costs further.The Fed, whose inflation target is at two percent, kept rates unchanged last month after three consecutive cuts. At the end of 2024, Fed policymakers pared back the number of rate cuts they expect this year to two, some citing concerns about trade uncertainty following Trump’s election victory.Analysts warn that Trump’s tariffs — and plans to slash taxes, regulations and immigration — risked reigniting inflation.”What makes today’s rise in CPI inflation data so precarious is that many believe this is just the beginning, as tariffs could push inflation even higher,” said Jochen Stanzl, chief market analyst at financial services firm CMC Markets.”Market volatility is set for a perfect storm as the mix of higher inflation and the threat of tariffs serve to scare investors,” Stanzl said.”Given today’s inflation numbers, it is questionable whether the Fed will be able to deliver on its two rate cuts planned for 2025.” – Heineken fizzes -In Asian markets, Hong Kong led gains thanks to another tech rally. In Europe, London and Frankfurt hit fresh record highs, with support coming from cuts to interest rates in Britain and the eurozone, as well as positive company earnings. Shares in Dutch brewer Heineken fizzed as traders cheered better-than-expected beer sales. The stock surged 14 percent, making it the biggest gainer on the Amsterdam market.Oil prices slumped after data confirmed a large increase in US inventories. City Index and FOREX.com market analyst Fawad Razaqzada said an upward revision by the US Energy Information Agency to its US crude production forecast reinforced concerns about the market being oversupplied.There were worries too that trade tensions were weighing on sentiment, he added.”If trade conflicts escalate further, the prospect of slower economic expansion could weigh heavily on energy markets, adding another layer of uncertainty to crude oil forecast,” he said.- Key figures around 1630 GMT -New York – Dow: DOWN 0.9 percent at 44,180.71 pointsNew York – S&P 500: DOWN 0.7 percent at 6,025.74New York – Nasdaq: DOWN 0.5 points at 19,546.00London – FTSE 100: UP 0.3 percent at 8,807.44 (close)Paris – CAC 40: UP 0.2 percent at 8,042.19 (close)Frankfurt – DAX: UP 0.5 percent at 22,148.03 (close)Tokyo – Nikkei 225: UP 0.4 percent at 38,963.70 (close)Hong Kong – Hang Seng Index: UP 2.6 percent at 21,857.92 (close)Shanghai – Composite: UP 0.9 percent at 3,346.39 (close)Euro/dollar: UP at $1.0361 from $1.0360 on TuesdayPound/dollar: DOWN at $1.2412 from $1.2446Dollar/yen: UP at 154.77 yen from 152.45 yenEuro/pound: UP at 83.48 pence from 83.24 penceWest Texas Intermediate: DOWN 1.7 percent at $72.11 per barrelBrent North Sea Crude: DOWN 1.5 percent at $75.85 per barrelburs-rl/jj

Asian stock markets rose and there were fresh record highs for leading European indices Wednesday as attention turned to upcoming US inflation data.Following days of attention on US President Donald Trump’s tariffs, traders switch focus to the latest Consumer Price Index (CPI) which could alter Federal Reserve thinking on the outlook for interest rates.”Bar a major surprise in today’s price data, one month’s worth of data is unlikely to sway the Federal Reserve,” noted Kathleen Brooks, research director at XTB. “However, CPI is a major market release, and it can have a big impact on financial markets, at least in the short term.”Fed boss Jerome Powell on Tuesday reiterated that the US central bank was in no hurry to cut interest rates further.It comes as analysts warn that Trump’s tariffs — and plans to slash taxes, regulations and immigration — risked reigniting prices.”The impact could be higher inflation, higher (US) interest rates to combat that inflation, or higher taxes for households,” said Hetal Mehta, head of economic research at St James’s Place.Wall Street ended Tuesday on a mostly positive note, despite tech stocks dragging the Nasdaq into the red.Hong Kong led gains across most Asian stocks markets Wednesday thanks to another rally by its tech firms. In Europe, London and Frankfurt hit fresh record highs, with support coming from cuts to interest rates in Britain and the eurozone, as well as thanks to positive company earnings.Shares in Dutch brewer Heineken fizzed Wednesday as traders cheered better-than-expected beer sales.The stock surged almost 13 percent, making it the biggest gainer on the Amsterdam market, which was up slightly overall approaching midday.- Key figures around 1030 GMT -London – FTSE 100: UP 0.1 percent at 8,782.94 pointsParis – CAC 40: UP 0.2 percent at 8,047.61Frankfurt – DAX: UP 0.3 percent at 22,104.52Tokyo – Nikkei 225: UP 0.4 percent at 38,963.70 (close)Hong Kong – Hang Seng Index: UP 2.6 percent at 21,857.92 (close)Shanghai – Composite: UP 0.9 percent at 3,346.39 (close)New York – Dow: UP 0.3 percent at 44,593.65 (close)Euro/dollar: UP at $1.0373 from $1.0360 on TuesdayPound/dollar: DOWN at $1.2441 from $1.2446Dollar/yen: UP at 153.68 yen from 152.45 yenEuro/pound: UP at 83.38 pence from 83.24 penceWest Texas Intermediate: DOWN 1.2 percent at $72.47 per barrelBrent North Sea Crude: DOWN 1.0 percent at $76.24 per barrel

Asian equities rose while London and Frankfurt hit fresh highs Wednesday as traders took in their stride a warning from Federal Reserve boss Jerome Powell that the US central bank was in no hurry to cut interest rates.The remarks, reflecting similar sentiments from another top monetary policymaker, came a day before the release of closely watched inflation data and reinforced expectations that borrowing costs would likely remain elevated for some time.Asia’s gains came despite worries about where US President Donald Trump’s next tariffs salvo will land after he imposed 25 percent duties on aluminium and steel imports and said he was considering further measures.Powell told lawmakers at a congressional hearing that with policy “now significantly less restrictive than it had been and the economy remaining strong, we do not need to be in a hurry to adjust” rates.”We know that reducing policy restraint too fast or too much could hinder progress on inflation,” he said. “At the same time, reducing policy restraint too slowly or too little could unduly weaken economic activity and employment.”The Fed cut rates three times last year as inflation continued to slow and the labour market softened but expectations for more reductions over the next 12 months have been pared because progress is slow.Observers said worries that Trump’s tariffs, and plans to slash taxes, regulations and immigration, could reignite prices had also played a role in traders scaling back their rate-cut bets.”One way or another the US consumer will pay for tariffs — they are on the hook,” said Hetal Mehta, head of economic research at St James’s Place.”The impact could be higher inflation, higher (US) interest rates to combat that inflation, or higher taxes for households.”New York Fed chief John Williams said the economy and consumer spending remained strong going into 2025, adding that inflation will continue to ease to the bank’s two percent target.However, he warned “it will take time before we can achieve that target on a sustained basis” and he did not expect the target to be reached this year.In a reference to Trump, he added that, despite the strong fundamentals, “the economic outlook remains highly uncertain, particularly around potential fiscal, trade, immigration, and regulatory policies”.Readings on the US consumer and producer price indexes due this week will be pored over for an idea about the Fed’s plans.Wall Street ended Tuesday on a mostly positive note, despite tech stocks dragging the Nasdaq into the red.Hong Kong led gains across most Asian markets thanks to another rally in its tech firms, while Shanghai, Tokyo, Sydney, Seoul, Singapore, Mumbai, Manila and Jakarta were also well up. London and Frankfurt extended gains at the open, having finished at a record high Tuesday. Paris also rose.- Key figures around 0815 GMT -Tokyo – Nikkei 225: UP 0.4 percent at 38,963.70 (close)Hong Kong – Hang Seng Index: UP 2.6 percent at 21,857.92 (close)Shanghai – Composite: UP 0.9 percent at 3,346.39 (close)London – FTSE 100: UP 0.1 percent at 8,784.89 Euro/dollar: UP at $1.0366 from $1.0360 on TuesdayPound/dollar: UP at $1.2448 from $1.2446Dollar/yen: UP at 153.48 yen from 152.45 yenEuro/pound: UP at 83.28 from 83.24 penceWest Texas Intermediate: DOWN 0.6 percent at $72.90 per barrelBrent North Sea Crude: DOWN 0.5 percent at $76.59 per barrelNew York – Dow: UP 0.3 percent at 44,593.65 (close)

The unfathomable scale of the world’s largest religious festival in India overshadows many nations in size — and for the economy, its impact is just as dramatic.”Business is booming everywhere for everyone across our city,” said taxi driver Manoj Kumar, whose northern Indian home of Prayagraj has swelled from its normal seven million residents dozens of times over.Religion, politics and the economy are deeply intertwined in India — and the six-week-long Hindu festival of the Kumbh Mela gives one of the clearest examples.The Hindu nationalist government of Prime Minister Narendra Modi has poured in funds for large-scale infrastructure upgrades.”We are seeing an unimaginable transformation of our city,” 37-year-old Kumar said.”There are new roads, bridges, additional flights and trains, new hotels and restaurants, and an unmet demand for workers.”The Kumbh’s extraordinary scale provides a major job boost, with millions of visitors splashing out on accommodation, transport and food.Kumar’s daily earnings shot up to around $250, roughly eight times as much as usual.”I’ve had some of the busiest 18-20 hour workdays of my life with little or no rest,” he said. “But I am not alone in benefiting — this is a life-changing event.”- ‘Big driver’ -The state government — led by firebrand Hindu monk Yogi Adityanath, chief minister of Uttar Pradesh state and a key leader in Modi’s Bharatiya Janata Party (BJP) — controls lucrative service contracts for its running. It is impossible to independently verify government statistics of a religious celebration that critics say is being cashed in on by Hindu nationalist leaders to burnish political credentials.That includes the reported more than 435 million pilgrims to have taken a ritual river dip so far — with the festival running until February 26 — that organisers say is based on artificial intelligence assessments from surveillance camera networks.It also includes the whopping $24 billion Adityanath projects it will contribute to the economy — that’s the equivalent of more than the population of the United States and Canada splashing out the entire annual GDP of Armenia.They are staggering statistics even for the world’s most populous nation of 1.4 billion people.Devendra Pratap Singh, president of Associated Chambers of Commerce and Industry in Uttar Pradesh and Uttarakhand states, puts the figure as even higher — at about $30 billion. “Our economy would obviously grow because of this mega event,” he told AFP. “We’re seeing its benefits at every stage, with impacts on transportation, hotels, food, and every other sector.”With the festival funnelling religious tourism on a vast scale, local reports say the state also expects $3 billion in additional government revenues including taxes and fees.”How gods drive India’s consumer economy,” The Economic Times newspaper said in a report last month. “The Kumbh is the most visible part of a big driver of India’s economy, the festival cycle.”Major household brands see the Kumbh as ripe for opportunity, setting up shops and pouring in advertising. In the crowded tent city along the river banks, where pilgrims come to take ritual dips, an army of vendors sells everything from food and clothes to prayer items, flowers and festival memorabilia.- ‘Phenomenal’ -Sanjeev Singh, from Adityanath’s office, says the Kumbh Mela makes global festivals look small — pointing to Brazil’s Rio Carnival with some seven million participants or the Muslim hajj in Saudi Arabia with nearly two million.”The sheer scale is mind-boggling,” Singh said. “This is phenomenal.”Hotel owner Deepak Kumar Mehrotra, 67, said his two properties have been fully booked. “Demand has really shot up,” Mehrotra said. “People across all strata are getting really good business.”Rooms, if available, are going for up to 10 times their regular rates — with top-end hotels charging $900-$1,200 per night — almost as much as the annual per capita income in Uttar Pradesh state.Meeting demand has been a challenge, with chefs, drivers and electricians in high demand.Travel agent Shahid Beg Romi, 62, who runs Sangam Travels, said businesses were struggling to “adjust to this drastic change in the footfall” in Prayagraj.”Even small areas 50 miles (80 kilometres) outside Prayagraj are packed,” Romi added. “People are staying and commuting to the Kumbh from there”.The impact is felt in other Hindu pilgrimage sites in the state, including Ayodhya and Varanasi, with devotees journeying on to pray there too.”Such mega-events obviously create new growth and work opportunities,” he said.

US stock markets wobbled and gold hit fresh highs Tuesday as traders kept a nervous eye on US President Donald Trump’s next tariff moves and worried about inflation and interest rates.European markets rose, with both Frankfurt and London again setting records, while Asian equity markets struggled for direction.All three major US indices had opened lower, but the Dow finished positive and the S&P 500 ended unchanged. The Nasdaq dropped 0.4 percent.LBBW’s Karl Haeling said the market’s ability to avoid a major selloff amid the tariff uncertainty reflected “underlying optimism” about economic conditions in spite of tariff and interest rate uncertainty.Trump has lived up to his campaign pledges to resume his hardball trade diplomacy.US trading partners expressed dismay and vowed retaliation to Trump’s latest move — a plan to enact 25 percent tariffs on imported aluminum and steel from March 12.Still, caution looms over trading floors as dealers brace for the next announcement out of the White House.For tariffs to be effective, “the administration needs to keep everyone guessing and this creates uncertainty for financial markets,” noted AJ Bell investment director Russ Mould.”The administration is clearly prepared to implement tariffs rather than just using them as a negotiating tactic,” he added.The uncertainty fueled by Trump’s moves has pushed safe-haven gold ever higher. It extended gains Tuesday to hit a new peak above $2,942 an ounce, before retreating.Fears that Trump’s tariffs, along with tax cuts and deregulation, will reignite inflation and force the Federal Reserve to keep interest rates elevated have sent the dollar up against most of its peers, although it traded mixed on Tuesday.Fed Chair Jerome Powell reiterated in congressional testimony that the US central bank was in no hurry to adjust monetary policy, leaving a cloudy outlook for additional interest rate cuts.Investors expect two cuts at most this year.Focus remained also on the latest company earnings season which was nearing its end.Shares in Britain’s BP slid after it pledged to “fundamentally reset” its strategy in the face of tumbling profits. The loss came despite rising oil prices.”Signs of tighter Russian supply in addition to increasing supply risks provoked a fourth straight day of gains,” said IG’s Rudolph.Coca-Cola jumped 4.7 percent after reporting an 11 percent increase in profits to $2.2 billion in results that topped estimates.- Key figures around 21430 GMT -New York – Dow: UP 0.3 percent at 44,593.65 (close)New York – S&P 500: FLAT at 6,068.50 (close)New York – Nasdaq Composite: DOWN 0.4 percent at 19,643.86 (close)London – FTSE 100: UP 0.1 at 8,777.39 (close) Paris – CAC 40: UP 0.3 percent at 8,028.90 (close)Frankfurt – DAX: UP 0.6 percent at 22,037.83 (close)Hong Kong – Hang Seng Index: DOWN 1.1 percent at 21,294.86 (close)Shanghai – Composite: DOWN 0.1 percent at 3,318.06 (close)Tokyo – Nikkei 225: Closed for a holidayEuro/dollar: UP at $1.0360 from $1.0307 on MondayPound/dollar: UP at $1.2446 from $1.2368Dollar/yen: UP at 152.45 yen from 152.00 yenEuro/pound: DOWN at 83.24 from 83.33 penceWest Texas Intermediate: UP 1.4 percent at $73.32 per barrelBrent North Sea Crude: UP 1.5 percent at $77.00 per barrelburs-jmb/st

Canada, Mexico and the EU on Tuesday slammed US President Donald Trump’s “unjustified” decision to impose tariffs on steel and aluminium imports, which has raised fears of a broader trade war.Trump signed executive orders to impose 25 percent tariffs on imports of the metals starting March 12, triggering a flurry of angry reactions.The European Union and Canada vowed to retaliate firmly.Such tariffs would be “entirely unjustified”, Canadian Prime Minister Justin Trudeau said at an artificial intelligence conference in Paris.”Our response will of course be firm and clear,” Trudeau told AFP, as Canadian steelmakers warned of “massive” disruption from Trump’s move.In Mexico — the third-largest steel exporter to the United States, after Canada and Brazil — a top minister urged Trump not to “destroy” four decades of North American trade ties. Economy Minister Marcelo Ebrard said the balance of trade in steel and aluminium between Mexico and the United States was in Washington’s favour by almost $6.9 billion in 2024, and tariffs were therefore “not justified”.In Brussels, European Commission chief Ursula von der Leyen warned that “unjustified tariffs on the EU… will trigger firm and proportionate countermeasures”.EU trade ministers will discuss the 27-country bloc’s next steps in a video conference Wednesday, while Trudeau will separately discuss strategy with top officials in Brussels.Brazil, for its part, said it had no intention of entering into a trade war with the United States, despite President Luiz Inacio Lula da Silva having vowed reciprocation if Trump imposed tariffs.- UK, Australia contacts -South Korea, the fourth-biggest steel exporter to the United States, also vowed to protect its companies’ interests.Acting President Choi Sang-mok said Seoul would seek to reduce uncertainties “by building a close relationship with the Trump administration and expanding diplomatic options”.A spokesman for British Prime Minister Keir Starmer said London was “engaging with our US counterparts to work through the detail” of the tariffs.Britain’s steel industry body called the tariff plan a “devastating blow”, while its European counterpart said it would worsen “an already dire market environment”.In Monday’s executive order, Trump said “all imports of aluminium articles and derivative aluminium articles from Argentina, Australia, Canada, Mexico, EU countries, and the UK” will be subject to additional tariffs.The same countries are named in his executive order on steel, along with Brazil, Japan and South Korea.Trump said he was “simplifying” US tariffs, adding: “It’s 25 percent without exceptions or exemptions.”But Australian Prime Minister Anthony Albanese said the United States was considering an exemption for his country after he spoke to Trump by phone.- ‘No need to panic’ -The tariffs also appear to indirectly target China, with the executive orders detailing how Chinese producers are “using” Mexico’s tariff exemption to “funnel” aluminium into the United States.Trump has signalled he would look at imposing additional tariffs on automobiles, pharmaceuticals and computer chips, and has promised an announcement Tuesday or Wednesday on broader “reciprocal tariffs” to match those of other governments.During his 2017-2021 presidency, Trump imposed sweeping tariffs to counteract what he saw as unfair competition faced by US industries from Asian and European countries.As it weighs how to respond to Trump, the EU bloc could simply revisit its retaliatory tariffs from 2018, which were suspended after a truce with president Joe Biden.Those would come back into force when a deadline expires at the end of March, affecting a range of US goods including bourbon.Brussels has given no indication as to what action it might take but German Chancellor Olaf Scholz said the EU would present a united front.Around a quarter of European steel exports go to the United States, according to the consulting firm Roland Berger.”There is definitely no need to panic,” an EU diplomat told AFP, calling Trump’s tariff move “stupid, but predictable.”The diplomat voiced doubt, however, that “dialogue is enough”, saying the United States would most likely “expect gestures or ‘deals’.” Ford CEO Jim Farley said Tuesday that Trump’s tariffs and other measures were creating “a lot of cost and a lot of chaos” for his company and other US carmakers.burs-raz/mlr/js

Canada and the EU vowed Tuesday to stand firm against US President Donald Trump’s move to impose tariffs on steel and aluminium imports — pushing Washington further towards a trade war with key global partners.Trump signed executive orders to impose 25 percent tariffs on steel and aluminium imports from March 12, triggering a flurry of reactions and promises to protect workers.Such tariffs would be “entirely unjustified” and “Canadians will resist strongly and firmly if necessary”, Prime Minister Justin Trudeau said during a conference on artificial intelligence in Paris.”Our response will of course be firm and clear,” Trudeau told AFP — with Canadian steelmakers warning of “massive” disruption from Trump’s move.The European Union swiftly vowed to retaliate with “firm and proportionate countermeasures”.EU chief Ursula von der Leyen will meet US Vice President JD Vance on Tuesday in Paris where they are expected to discuss Trump’s orders.”The EU will act to safeguard its economic interests. We will protect our workers, businesses and consumers,” von der Leyen said in a statement.EU trade ministers will discuss the 27-country bloc’s next steps during a meeting by video link on Wednesday, officials told AFP.South Korea — the fourth biggest steel exporter to the United States, following Canada, Brazil and Mexico — vowed to protect its companies’ interests.South Korean acting President Choi Sang-mok said Seoul would seek to reduce uncertainties “by building a close relationship with the Trump administration and expanding diplomatic options.”The spokesman of British Prime Minister Keir Starmer said London was “engaging with our US counterparts to work through the detail” of the tariffs.In Monday’s executive order, Trump said “all imports of aluminium articles and derivative aluminium articles from Argentina, Australia, Canada, Mexico, EU countries, and the UK” will be subject to additional tariffs.The same countries are named in his executive order on steel, along with Brazil, Japan and South Korea.”I’m simplifying our tariffs on steel and aluminium,” Trump said in the Oval Office. “It’s 25 percent without exceptions or exemptions.”- ‘Misguided path’ -The tariffs also appear to indirectly target China, with the executive orders detailing how certain countries — particularly Mexico — were “using” their exemptions to get Chinese imports into the United States. “Chinese producers are using Mexico’s general exclusion from the tariff to funnel Chinese aluminium to the United States through Mexico,” it said.Trump has also signalled he would look at imposing additional tariffs on automobiles, pharmaceuticals and computer chips, and promised an announcement Tuesday or Wednesday on broader “reciprocal tariffs” to match the levies other governments charge on US products.During his 2017-2021 presidency, he had imposed sweeping tariffs as he believed US industries faced unfair competition from Asian and European countries. German Chancellor Olaf Scholz said the EU will present a united front to Washington, though “I hope that we are spared the misguided path of tariffs and counter-tariffs.”French President Emmanuel Macron vowed in an interview aired Sunday to go head-to-head with Trump over his wider tariff threats against the EU.Around 25 percent of European steel exports go to the United States, according to consultancy Roland Berger.”There is definitely no need to panic,” an EU diplomat told AFP, qualifying Trump’s tariff move as “stupid, but predictable.”The diplomat voiced doubt, however, that “dialogue is enough”, saying the United States would most likely “expect gestures or ‘deals’.” Britain’s steel industry body called the tariff plan a “devastating blow”.- ‘No winner in trade war’ -Trump has shown his determination to weaponise the United States’ power as the world’s largest economy, ordering tariffs on key trade partners China, Mexico and Canada soon after taking office.He paused 25 percent levies against Canada and Mexico for a month after both countries vowed to step up measures to counter flows of the drug fentanyl and the crossing of undocumented migrants into the United States.But Trump went ahead with tariffs on China, the world’s second-biggest economy, with products entering the United States facing an additional 10 percent levy.Chinese retaliatory tariffs targeting US coal and liquified natural gas came into play Monday. Chinese foreign ministry spokesman Guo Jiakun said “there is no winner in a trade war and tariff war.”burs-dk-raz/ec/lth

Chinese battery giant CATL started the application process on Tuesday to be listed in Hong Kong and named seven banks as overall coordinators, according to stock exchange filings.CATL, which produces more than a third of the EV batteries sold worldwide, filed a 527-page document to the Hong Kong Stock Exchange with offer-related information redacted.It is the first step in what analysts say could be a jumbo initial public offering that could boost Hong Kong’s fortunes as a listing hub. The firm submitted an application proof in “draft form”, which includes financial information and corporate details with redactions.CATL said in another exchange filing dated Tuesday that it had appointed overall coordinators and listed seven financial institutions. The company is publicly traded in Shenzhen and its plans to seek a secondary listing in Hong Kong were announced in an exchange filing in December.Founded in 2011 in the eastern coastal Chinese city of Ningde, CATL has grown into the world’s largest EV battery maker and supplies firms including Mercedes-Benz, BMW, Volkswagen, Toyota, Honda and Hyundai.CATL said in the exchange filing that it had “established six major (research and development) centers and 13 battery manufacturing bases worldwide, with service outlets spanning 64 countries and regions” as of September.”By the end of November 2024, our EV batteries were installed in approximately 17 million vehicles, which represents one in every three EVs worldwide,” it said.The funds raised will be used “to advance the construction of Phase I and II of our Hungary project”, as well as for “working capital and other general corporate purposes”, according to the document.CATL is building its second European factory in Hungary after launching its first in Germany in January 2023.- Robust support -In January, the US Department of Defense added CATL to a list of companies it says are affiliated with Beijing’s military.China has denounced the move as “suppression”, while CATL denied engaging “in any military related activities”.CATL’s Shenzhen shares are down nearly three percent since the start of the year.The company has benefited from robust financial support from Beijing, which has prioritised the development of domestic high-tech industries that it views as strategically advantageous.At home, the firm’s success in recent years has been galvanised by rapid growth in the domestic market.Hong Kong’s stock exchange is eager for the return of big-name Chinese listings in the hope of regaining its crown as the world’s top IPO venue. The Chinese finance hub saw a steady decline in new offerings after a regulatory crackdown by Beijing starting in 2020 led some Chinese mega-companies to put their listing plans on hold.

European and Asian markets struggled for direction and gold hit a fresh high Tuesday as traders kept a nervous eye on Donald Trump’s next tariff moves.The US president has lived up to his campaign pledges to resume his hardball trade diplomacy, signing off on steel and aluminium tariffs and warning of more measures to come.While the moves have jolted sentiment, equities have held up since Trump took office, with analysts saying measures have so far been less severe than feared.Still, caution looms over trading floors as dealers brace for the next announcement out of the White House.Asian markets struggled to maintain the momentum from Monday, with Hong Kong and Shanghai falling.In Europe, Frankfurt’s stock market edged up, while Paris and London were flat.For tariffs to be effective, “the administration needs to keep everyone guessing and this creates uncertainty for financial markets”, noted AJ Bell investment director Russ Mould.”The administration is clearly prepared to implement tariffs rather than just using them as a negotiating tactic,” he added.The uncertainty fuelled by Trump’s moves has pushed safe-haven gold ever higher. It extended gains Tuesday to hit a new peak above $2,942 an ounce.All three main US indices started the week on the front foot thanks to a rally in tech firms.Fears that Trump’s tariffs, along with tax cuts and deregulation, will reignite inflation and force the Federal Reserve to keep interest rates elevated have sent the dollar up against most of its peers.Readings on consumer and producer price indexes this week will provide a fresh snapshot of inflation, while Fed boss Jerome Powell is also due to give depositions to US lawmakers.Both will be pored over for an idea about the bank’s plans for rates, with forecasts for two cuts at most this year.Focus remained also on the latest company earnings season which was nearing its end.Britain’s BP shares rose slightly after it pledged to “fundamentally reset” its strategy in the face of tumbling profits. – Key figures around 1100 GMT -London – FTSE 100: FLAT at 8,765.36 pointsParis – CAC 40: FLAT at 8,009.53Frankfurt – DAX: UP 0.1 percent at 21,930.62Hong Kong – Hang Seng Index: DOWN 1.1 percent at 21,294.86 (close)Shanghai – Composite: DOWN 0.1 percent at 3,318.06 (close)Tokyo – Nikkei 225: Closed for a holidayNew York – Dow: UP 0.4 percent at 44,470.41 (close)Euro/dollar: UP at $1.0316 from $1.0308 on MondayPound/dollar: DOWN at $1.2360 from $1.2364Dollar/yen: UP at 152.10 yen from 151.97 yenEuro/pound: UP at 83.46 from 83.35 penceWest Texas Intermediate: UP 1.2 percent at $73.15 per barrelBrent North Sea Crude: UP 1.2 percent at $76.77 per barrel