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The dollar struggled to bounce back Wednesday following another selloff fuelled by Donald Trump’s suggestion he was happy with the currency’s recent decline, while tech firms helped most Asian equity markets extend their rally.Traders are also keeping an eye on the Federal Reserve’s latest meeting, hoping for some guidance on its plans for interest rates amid uncertainty over the US president’s policies following his latest tariff threats.The greenback has retreated across the board this week following reports that the New York Fed had checked in with traders about the yen’s exchange rate, which fuelled talk that US and Japanese officials were prepared to stage a joint intervention.That led to speculation the White House was prepared to let the dollar weaken, and Trump did little to dismiss that when asked Tuesday if he was worried about the decline.”No, I think it’s great,” he told reporters in Iowa as the unit hit its weakest level against the euro in four-and-a-half years and a two-and-half-month low against the yen. “Look at the business we’re doing. The dollar’s doing great.”He added: “I want it to be — just seek its own level, which is the fair thing to do.”The dollar also sank against the pound, South Korean won and Chinese yuan, with a slight bump Wednesday doing little to recover its latest losses.Observers said unease about Trump’s latest tariff outbursts, including threats against European nations over their opposition to his Greenland grab and a warning to Canada over its trade talks with China, have also dented faith in US assets and weighed on the unit.Meanwhile, US consumer confidence plunged to its lowest level since 2014, a survey showed, as households fret about inflation and the elevated cost of living.Win Thin, at Bank of Nassau 1982 Ltd, said: “Foreign exchange typically is the leader in terms of showing market discomfort with a country’s policies and economic outlook, so this dollar weakness bears watching.”Still, equity markets performed well in Asia after the S&P 500 clocked another record high in New York thanks to a surge in tech titans including Apple, Microsoft and Amazon.That helped Seoul to be among the best performers again — hitting another all-time peak — as chipmakers Samsung and SK hynix rallied.There were also big gains in Tokyo, Hong Kong, Shanghai, Taipei, Manila, Mumbai and Bangkok.London and Frankfurt were flat at the open, while Paris fell.Jakarta plunged more than eight percent — its heftiest fall in more than nine months — after index compiler MSCI called on regulators to look into ownership concerns and said it would hold off adding Indonesian stocks to its indexes or increasing their weighting.The plunge saw market heavyweights including PT Bumi Resources and PT Petrosea lose around 15 percent.MSCI said “investors highlighted that fundamental investability issues persist due to ongoing opacity in shareholding structures and concerns about possible coordinated trading behaviour that undermines proper price formation”.Sydney, Singapore and Wellington dipped.Traders are keeping a close watch on earnings this week from some of Wall Street’s Magnificent Seven, with Microsoft, Meta, Tesla and Apple all reporting.”These results will provide critical insights into the trajectory of the artificial intelligence trade,” wrote Tony Sycamore, market analyst at IG.”After losing momentum in the final months of 2025 due to growing scrutiny over return on investment, capital expenditure and real-world constraints, the market is eager to see if the AI narrative can regain traction in 2026.”Forward guidance will be key, alongside scrutiny of margins and capex projections.”In company news, tech investment titan SoftBank jumped almost six percent after the Wall Street Journal reported it was in talks to pump an additional $30 billion into ChatGPT developer OpenAI.That comes after it invested $22.5 billion last month for an 11 percent stake.- Key figures at around 0815 GMT -Tokyo – Nikkei 225: UP 0.1 percent at 53,358.71 (close)Hong Kong – Hang Seng Index: UP 2.6 percent at 27,826.91 (close)Shanghai – Composite: UP 0.3 percent at 4,151.24 (close)London – FTSE 100: FLAT at 10,206.88Dollar/yen: UP at 152.66 yen from 152.32 yen on TuesdayEuro/dollar: DOWN at $1.1988 from $1.2035Pound/dollar: DOWN at $1.3796 from $1.3833Euro/pound: DOWN at 86.91 pence from 86.98 penceWest Texas Intermediate: UP 0.1 percent at $62.43 per barrelBrent North Sea Crude: DOWN 0.1 percent at $67.50 per barrelNew York – Dow: DOWN 0.8 percent at 49,003.41 (close)

Ahead of a snap election in Japan, Prime Minister Sanae Takaichi has pledged to scrap a tax on food, but a lack of clear funding is unnerving markets and voters. As she announced the dissolution of parliament last week ahead of a February 8 vote, the ultra-conservative leader promised to exempt food products from an eight percent consumption tax for two years in response to soaring living costs. It’s a measure also strongly supported by opposition parties.But her comments immediately rattled the bond market, worried by the prospect of fiscal slippage, with yields on 30- and 40-year Japanese bonds jumping to record highs. That evoked fears of a repeat of the turmoil seen in Britain in 2022 when Prime Minister Liz Truss unveiled massive unfunded tax cuts that triggered a sharp spike in bond yields — eventually leading to her resignation. Takaichi is far from that point: markets calmed in the following days, and Japan’s modest budget deficit allows it to absorb shocks. “Japan is able to secure financing without relying on foreign money” thanks to its vast domestic savings, said Hideo Kumano, an economist at Dai-ichi Life. And unlike the UK at the time, it posts a sizeable current account surplus, he told AFP. Takaichi has repeatedly said Japan will post a primary budget surplus, which excludes the cost of servicing debts, for the first time in 28 years. A “Truss shock” is only one risk scenario, Kumano said, although the underlying danger “has been rising”.-‘Fiscal sustainability’-The tax break is expected to cost around 5 trillion yen ($32.8 billion) per year, but Takaichi has outlined no funding source or offsetting measures. Markets were already anxious over a colossal $135 billion stimulus package adopted at the end of 2025.That aims to support households through energy subsidies, even at the risk of inflating Japan’s gargantuan national debt, which is expected to exceed 230 percent of GDP in the fiscal year 2025-26.Under pressure, Takaichi defended her measure on Monday, saying she wanted to set up a public committee to discuss the issue, insisting she was paying “considerable attention to fiscal sustainability”.But a bigger majority in parliament could give her coalition free rein for expansionary fiscal policy. In the event of a landslide victory, UBS experts warned that Takaichi’s policies could even exceed market expectations and that renewed anxiety could push bond yields back up.  In that case, “Takaichi may be forced to offset some of the expansionary fiscal measures announced recently with tightening elsewhere”, noted Marcel Thieliant, an economist at Capital Economics. The government could also opt to issue shorter-maturity debt, and, as a last resort, the Bank of Japan (BoJ) “could step up its bond purchases yet again”, he added. But it’s complicated. Any intervention in the bond market risks triggering a depreciation of the yen, making imports more expensive and putting further upward pressure on inflation.The foreign exchange market is already jittery. The yen has come under pressure amid renewed concerns over fiscal discipline, before it rebounded amid rumours of a possible joint Japan–US monetary intervention to boost its value. – ‘Election tactic’? -It’s unclear whether the tax break is even a vote-winner, although inflation is a top concern among voters.Consumer prices, excluding fresh food, rose 2.4 percent year-on-year in December.According to a poll published Monday by the Nikkei newspaper, 56 percent of those surveyed believe the promised tax exemption would not be effective against rising prices. “You can’t help wondering whether it’s just an election tactic,” Kanamu Kashima, a 23-year-old student, told AFP. The BoJ itself has slightly raised its inflation forecasts through 2027, pointing to pressure from labour shortages in the ageing country. That might lead to an increase in long-term yields, which adjust to these expectations. In the short term, Dai-ichi Life’s Kumano warned that structural reforms are being sidestepped. “A question must be asked about the real nature of the tax cut and… if it alone would do the job (of restoring the economy),” he said.”These policies are rather short-sighted.”

Presiding over the signing of a major trade deal alongside Indian Prime Minister Narendra Modi on Tuesday, EU chief Ursula von der Leyen broke into a large smile.A diplomatic and economic coup, the EU-India pact comes as a welcome piece of good news for Brussels after a tumultuous few weeks dominated by US threats over Greenland.Addressing a press conference in New Delhi, von der Leyen described it as a tale of “two giants who choose partnership” and “the best answer to global challenges”.In spite of its eye-tickling pollution, the Indian capital must have felt like a breath of fresh air for von der Leyen and European Council president Antonio Costa, who co-led the EU delegation.As they flew away from Brussels over the weekend, the pair left behind a just-defused crisis in transatlantic relations and internal squabbling over another trade deal with South American nations.In New Delhi, authorities rolled out the red carpet for the pair, who were feted as guests of honour at India’s Republic Day parade.Posters emblazoned with their faces adorned lampposts across the city.Costa, whose family hails from Goa, proudly flashed his Indian identity card at a press conference where Modi celebrated him as “the Gandhi of Lisbon”.Meanwhile local media praised von der Leyen’s burgundy and gold brocade outfit — a nod to Indian fashion.It was a far cry from the scorn and threats reserved for Europe by its traditional ally the United States at the World Economic Forum in Davos last week.European officials had been hoping to make progress on Ukraine at the Swiss ski resort — a goal drowned out by US President Donald Trump’s push to wrest control of Greenland from EU member Denmark.- ‘Difficult job’ -Trump made an about-turn after talks with NATO chief Mark Rutte — a change of heart EU officials were keen to credit to Europe’s firm response — and the climbdown took the sting out of an emergency summit called on the Greenland issue.One year into Trump’s second term, Costa said the European Union has “learned how to manage” the ups and downs, and not to “react to each message”.”We need to keep calm and continue to have a polite, respectful relationship,” the council chief told AFP. “At the same time, we need to diversify our relationships”.But few in Europe believe the Greenland crisis was a one-off bump in the road, with the unpredictable US leader at the helm.Maros Sefcovic, the EU’s trade chief, told AFP he scours through newspaper headlines each morning in anticipation of “what else might happen”.”It’s indeed a difficult job,” he quipped.Yet he said the same was true for most other countries, which in turn found renewed appeal in what Europe has to offer: partnership, predictability and stability.India, for one, was left bruised by tariffs slapped on it by the White House over its purchase of Russian oil as New Delhi and Washington were negotiating a — so-far-elusive — trade deal.”The last year has turbocharged the European trade policy,” Sefcovic said.Pushing to reduce its dependencies on the United States and China and lower the cost of US tariffs, the EU was negotiating or looking to open talks with an array of nations including the Philippines, Malaysia, the United Arab Emirates and Australia, he said.- ‘New opportunities’ -By cutting or eliminating tariffs on almost 97 percent of European exports, the deal struck in New Delhi will help ease access to India’s 1.4-billion-people-strong market for cars, wine, pasta and other EU products.But the signing also allowed Brussels to turn the page after a just-sealed pact with South American bloc Mercosur was cast into limbo by a legal challenge in the European parliament.That setback added to rancorous divisions among member states over the deal’s impact on European farmers, who remained deaf to the EU’s arguments and staged months of tractor-mounted protests against the accord.European officials hope the new India deal will also help bring the South Asian giant diplomatically closer to Europe.Neutral on Ukraine, New Delhi has relied on Moscow for key military hardware for decades, but has tried to cut its dependence by diversifying imports and pushing its own domestic manufacturing base.Modi said a security partnership struck alongside the trade deal would provide “new opportunities” for defence companies.While denying a pivot away from Russia, foreign secretary Vikram Misri said India was interested in hosting the joint production of European military kit.Monday’s Republic Day parade featured Russian helicopters and planes, alongside dancers and motorcycle daredevils.But, in perhaps a hint of things to come, it ended with a squad of French-made Rafale fighter jets zooming overhead.

Global stocks were mixed Tuesday ahead of a Federal Reserve interest rate decision and earnings from US tech giants while the dollar hit a four and a half year low against the euro.Major US indices moved in opposite directions, with gains by Apple, Amazon and other tech giants helping to lift the S&P 500 to a record, while the Dow retreated.Consumer confidence in the United States plunged to its lowest level since 2014, survey data showed, as American households continue to fret about inflation and elevated costs of living.But markets continued to express near certainty that the Fed on Wednesday will keep interest rates unchanged as officials gauge the health of the job market after three straight interest cuts at earlier meetings.”The outcome is all but a foregone conclusion,” said a JPMorgan research note.”Fed officials across the spectrum have indicated that after three 25-basis-point ‘risk management’ rate cuts, now is a good time to pause and take stock of developments,” JPMorgan analysts added.However, traders expect the Fed to cut interest rates next in June or July.While tech shares mostly rose, US health insurance stocks plunged after an announcement of a lower than expected pay increase related to a leading US government Medicare program. UnitedHealth Group plunged by around 20 percent, the biggest loser in the Dow.European equity markets ended the day mostly higher, with Frankfurt slipping lower.But the euro piled on more than one percent against the dollar, climbing to above $1.20 for the first time since 2021.Factors in the dollar’s latest slide include talk of a joint intervention between US and Japanese authorities to support the yen and the rising chance of a US government shutdown. Lawmakers in Washington are engaged in a budget fight on whether to keep funding the White House’s immigration crackdown after a second American was killed by federal authorities in Minnesota.The already weakened dollar fell again Tuesday afternoon after Trump seemed to welcome the weakening of the US currency, saying that the greenback was “doing great.”Earlier Tuesday, Asian stocks brushed off South Korea-US tariff concerns, instead focusing on “hopes of strong earnings from the US tech heavyweights in the next couple of days”, said Richard Hunter, head of markets at Interactive investor.Shares in German sportswear brand Puma climbed strongly in Frankfurt, with Chinese athletic goods giant Anta Sports set to purchase a leading stake in the company.But although posting a rise of 9.5 percent, Puma’s share price, at 23.71 euros, was quoted far below the 35 euros per share that Anta is paying Artemis, the holding firm of France’s Pinault family, for its 29-percent stake.This, analysts said, reflects investor caution about the group’s chances of turning its fortunes around, after seeing its market capitalization plunge by about a third over the past year.- Key figures at around 2130 GMT -New York – Dow: DOWN 0.8 percent at 49,003.41 (close)New York – S&P 500: UP 0.4 percent at 6,978.60 (close)New York – Nasdaq Composite: UP 0.9 percent at 23817.10 (close)London – FTSE 100: UP 0.6 percent at 10,207.80 (close)Paris – CAC 40: UP 0.3 percent at 8,152.82 (close)Frankfurt – DAX: DOWN 0.2 percent at 24,894.44 (close)Tokyo – Nikkei 225: UP 0.9 percent at 53,333.54 (close)Hong Kong – Hang Seng Index: UP 1.4 percent at 27,126.95 (close)Shanghai – Composite: UP 0.2 percent at 4,139.90 (close)Euro/dollar: UP at $1.2035 from $1.1880Dollar/yen: DOWN at 152.32 yen from 154.18 yen on MondayPound/dollar: UP at $1.3833 from $1.3680Euro/pound: UP at 86.98 pence from 86.84 penceBrent North Sea Crude: UP 3.0 percent at $67.57 per barrelWest Texas Intermediate: UP 2.9 percent at $62.39 per barrelburs-jmb/dw

General Motors announced Tuesday fresh actions to return funds to investors, lifting shares despite reporting a quarterly loss on costs connected to its electric vehicle retreat.The results were dented by a previously-announced hit of $7.1 billion, mostly due to write-down on EV investments following an about-face in US environmental policy enacted by President Donald Trump’s administration.That resulted in a fourth-quarter loss of $3.3 billion, compared with a loss of $3.0 billion in the year-ago period.Annual profits fell 55 percent to $2.7 billion.But the big US automaker, which has undertaken significant strategic pivots in light of Trump’s aggressive policy changes on trade and fuel economy rules, projected higher profits in 2026.GM described its performance in 2025 as “resilient,” with 2026 “positioned to be stronger than 2025,” according to a company presentation.GM expects solid vehicle pricing to continue amid relatively tight vehicle inventories that stand “slightly” below the company’s target of having 50-60 days of supply on hand. GM also plans launches of key vehicles, including its popular Chevrolet Silverado pickup.”We grew the business and adapted to significant changes in tax and trade policy, to deliver full year (earnings) at the high end of guidance range,” said Chief Executive Mary BarraRevenues dipped 5.1 percent to $45.3 billion on lower vehicle sales compared with the year-ago period.GM has significantly scaled back its EV investments while redirecting billions of dollars in capital towards boosting production of gasoline-fired vehicles.However, Barra has said the company continues to believe in an EV future, in part because “we know once somebody drives an EV, they rarely go back to internal combustion engine,” she said on Tuesday’s analyst call.- Lower auto inventories -GM expects 2026 tariff costs of $3.0-$4.0 billion after incurring $3.1 billion in 2025, a bit below the $3.5 to $4.5 billion previously forecast.The latest wildcard in White House trade policy came Monday night when Trump said he would raise tariffs on South Korean goods to 25 percent, accusing the Asian country’s legislature of not enacting policy to cement a US-South Korea deal setting a 15 percent tariff.GM has a significant operation in South Korea, including production of the Chevrolet Trax, a moderately-priced compact sport utility vehicle.GM’s forecasts still include the 15 percent levy. Barra said she was “hopeful” about the lower rate but would offset the hit if there is a period with a higher levy.GM’s North American inventories have gradually edged lower over the last year, standing at 486,000 vehicles at the end of the year, down 18.6 percent from the end of 2024.Pricing will be “flat to up 0.5 percent,” according to a GM slide.The company does not anticipate a “big buildup” in vehicle supply, Chief Financial Officer Paul Jacobson said on the conference call.Jacobson emphasized GM’s ongoing commitment to shareholder returns, noting the company has repurchased $23 billion in stock since November 2023, reducing its outstanding share count by nearly 35 percent.On Tuesday, GM raised its dividend by 20 percent and announced it had authorized $6 billion in new share repurchases.Shares surged 8.6 percent shortly after midday.

Global stock markets mostly rose Tuesday as investors geared up for the US Federal Reserve’s policy meeting outcome and earnings from tech titans, which will be pored over for signs of AI momentum.In New York, the Dow blue-chip index ran into some profit-taking but the broader S&P index and the tech-heavy Nasdaq Composite were well bid.European equity markets ended the day mostly higher, with Frankfurt slipping lower.Earlier Tuesday, Asian stocks brushed off South Korea-US tariff concerns, instead focusing on “hopes of strong earnings from the US tech heavyweights in the next couple of days”, said Richard Hunter, head of markets at Interactive investor.Tech firms are enjoying a fresh boost ahead of earnings releases as traders continue to pile into all things artificial intelligence.Apple, Meta, Microsoft and Tesla give updates this week, with other bellwethers including Texas Instruments, Boeing and Mastercard providing an idea about the state of the US economy.Boeing shares rose 1.8 percent after the aircraft maker reported its first annual profit since 2018.Concerns remain meanwhile over the scale of investment in AI even as its deployment has yet to pay off significantly.Investor attention was also on the Federal Reserve’s policy meeting starting Tuesday.The US central bank is widely expected to hold key interest rates steady on Wednesday, but “markets will be watching keenly to see if Chair (Jerome) Powell, who’s kept a tight grip on monetary policy, is to be replaced by a Trump dove,” said Derren Nathan, head of equity research at Hargreaves Lansdown.Data released Tuesday showed consumer confidence in the United States plunged in January to its lowest level since 2014 as American households continue to fret about inflation and elevated costs of living.Lale Akoner, eToro market analyst, said that weaker sentiment gives the Fed more room to wait before acting, as it indicates a gradual slowdown in growth than a downturn.”If inflation continues to cool and growth softens gradually, rate cuts later in the year or into 2027 become more likely,” she said.Markets currently expect to Fed to cut interest rates next in June or July.US President Donald Trump has meanwhile reverted back to tariff threats this week, warning South Korea he would impose 25 percent tolls on goods including autos for falling short of expectations on an earlier pact struck with Washington.The dollar remained under pressure after a selloff sparked by talk of a joint intervention between US and Japanese authorities to support the yen.Shares in German sportswear brand Puma climbed strongly in Frankfurt with Chinese athletic goods giant Anta Sports set to purchase a leading stake in the company.But although posting a rise of 9.5 percent, Puma’s share price, at 23.71 euros, was quoted far below the 35 euros per share that Anta is paying Artemis, the holding firm of France’s Pinault family, for its 29-percent stake.This, analysts said, reflects investor caution about the group’s chances of turning its fortunes around, after seeing its market capitalisation plunge by about a third over the past year.- Key figures at around 1630 GMT -New York – Dow: DOWN 0.6 percent at 49,098.78 pointsNew York – S&P 500: UP 0.5 percent at 6,986.17New York – Nasdaq Composite: UP 1.0 percent at 23,839.38London – FTSE 100: UP 0.6 percent at 10,207.80 (close)Paris – CAC 40: UP 0.3 percent at 8,152.82 (close)Frankfurt – DAX: DOWN 0.2 percent at 24,894.44 (close)Tokyo – Nikkei 225: UP 0.9 percent at 53,333.54 (close)Hong Kong – Hang Seng Index: UP 1.4 percent at 27,126.95 (close)Shanghai – Composite: UP 0.2 percent at 4,139.90 (close)Euro/dollar: UP at $1.1971 from $1.1883Dollar/yen: DOWN at 153.08 yen from 153.98 yen on MondayPound/dollar: UP at $1.3766 from $1.3682Euro/pound: UP at 86.98 pence from 86.85 penceBrent North Sea Crude: UP 1.6 percent at $65.82 per barrelWest Texas Intermediate: UP 1.9 percent at $61.75 per barrelburs/rl/jh

Chinese athletic goods giant Anta Sports will buy a controlling stake in historic German sportswear brand Puma for $1.79 billion, a stock exchange filing showed Tuesday.As it expands its international presence, Anta will buy 43 million shares for 35 euros apiece from the French billionaire Pinault family’s Artemis group, the statement to the Hong Kong exchange said, giving it a 29 percent stake.The price is a more than 60-percent premium to Puma’s last close, according to Bloomberg data, and values the deal at 1.51 billion euros.Anta said in the statement that the stake would “further enhance its presence and brand recognition in the global sporting goods market”, including China.”We believe Puma’s share price over the past few months does not fully reflect the long-term potential of the brand,” Anta chairman Ding Shizhong said.While the statement said Anta had no plans to launch a full takeover of Puma, it will “carefully assess the possibility of further deepening the partnership between the two parties in the future”.Artemis said the sale would allow it to “redeploy its resources to new value-creating sectors”.The deal is expected to close by the end of the year, though it is subject to regulatory approvals, and the company will buy shares with cash.In a statement sent to AFP, Puma CEO Arthur Hoeld welcomed Anta’s move, calling it a “vote of confidence in Puma and its strategic direction”.”Anta aims to empower Puma to fully realise its brand potential and its heritage,” Hoeld said.Anta declined to comment on the deal when contacted by AFP.The firm, based in China’s southeastern Fujian province, is one of the world’s largest sportswear companies.Founded in 1991, it is the parent company of many global brands through its subsidiary Amer Sports, including Wilson, Arc’teryx and Salomon.Anta closed its acquisition of Finland-based Amer in 2019, leading a consortium in a deal worth about $5.2 billion.It also controls rights in the vast Chinese market for foreign sportswear firms including Fila and Descente.Anta has become the world’s third-largest sportswear brand following Nike and Adidas, according to data analytics firm Euromonitor International.The purchase shows Anta “narrowing the gap” to those two giants, according to Marguerite Le Rolland, senior global insight manager for fashion at Euromonitor International.The Chinese sportswear giant will benefit from Puma’s global reputation, its leading position in India’s expanding sportswear market, and its partnership with Hyrox, the rapidly growing fitness trend, she said.”For Puma, this transaction will provide extra financial resources to turn around the business”.The German brand has been struggling with weak demand in recent months and saw sales decrease more than 15 percent in the third quarter of last year.CEO Hoeld, who was appointed last year, has said the brand had become “too commercial” and was undergoing a “reset” last year to improve on brand heat, distribution quality and product offering.Hoeld told investors in October that the company’s goal was to “become a top three sports brand in the future again”.He deemed 2026 a “year of transition”, vowing a return to growth in 2027.Puma is set to release its 2025 full-year financial results on February 26.pfc-mya-sam-bur/iv

Hybrid-electric vehicles dethroned purely petrol-powered cars as the top power option among consumers in Europe last year, data showed Tuesday.Some 10.8 million new vehicles were registered in 2025 in the European Union, an increase of 1.8 percent from the previous year, according to the European Automobile Manufacturers’ Association (ACEA). New car sales “remain well below pre-pandemic levels”, however, the trade association said in a statement.Despite the only modest overall sales growth, consumers continued to shift towards hybrid and battery-electric vehicles.Sales of hybrid-electric vehicles climbed by 13.5 percent last year to account for 34.5 percent of total sales in the EU last year, putting them ahead of petrol cars at 26.6 percent.Meanwhile, sales of battery-electric vehicles jumped by 30 percent to account for 17.4 percent of overall sales, though the ACEA noted that the gain was from a weak performance in 2024 and needs to rise further to stay on track with the EU’s transition goals.Sales of plug-in hybrids also rose, but sales of petrol and diesel vehicles dropped.The combined market share of petrol and diesel cars fell to 35.5 percent, down from 45.2 percent in 2024.Volkswagen Group saw sales rise by 5.5 percent last year to increase its lead as the top-selling carmaker in Europe.France’s Renault saw similar growth, but Stellantis, which owns several European brands such as Peugeot and Fiat, saw sales slide by 4.7 percent.Chinese carmaker BYD tripled its sales in the EU last year, although from a small base.China’s SAIC Motor, which owns the MG brand, saw sales rise by a third. Sales of Teslas fell by nearly 38 percent last year as the electric car brand has suffered reputational damage in Europe from its association with billionaire Elon Musk, who backed US President Donald Trump before a falling-out, and who has endorsed Germany’s far-right AfD party. 

India and the European Union announced Tuesday the “mother of all deals”, a huge trade pact to create a market of two billion people, reached after two decades of negotiations.EU chiefs and Prime Minister Narendra Modi hope the pact will help shield against challenges from the world’s two leading economies, the United States and China.The agreement will cut or eliminate tariffs on almost 97 percent of European exports, saving up to 4 billion euros ($4.75 billion) annually in duties, the 27-nation bloc said.”A mother of all deals,” Modi said Tuesday in the capital New Delhi, where he met with European Commission President Ursula von der Leyen and European Council President Antonio Costa.”This deal will bring many opportunities for India’s 1.4 billion and many millions of people of the EU,” Modi said, adding the agreement “represents about 25 percent of global GDP, and one-third of global trade”.The EU has eyed India — the world’s most populous nation — as an important market for the future.”Europe and India are making history today,” von der Leyen said in a statement, a day after she and Costa were feted as guests of honour at India’s Republic Day parade.”We have created a free trade zone of two billion people, with both sides set to benefit.”- ‘Increasingly insecure world’ -EU officials said the deal was the most ambitious India had ever agreed, and European companies would benefit from so-called “first mover advantage”.Europe’s key agricultural, automotive and service sectors stand to gain.But sensitive agricultural sectors, such as beef, rice and sugar whose inclusion in an earlier deal struck with South American bloc Mercosur sparked farmers’ anger in Europe, were left out of the agreement.New Delhi sees the European bloc as an important source of much-needed technology and investment to rapidly upscale its infrastructure and create millions of new jobs.It also includes a security partnership, providing “new opportunities” for defence companies, Modi said.”We are not only making our economies stronger — we are also delivering security for our people in an increasingly insecure world,” von der Leyen said, speaking alongside Modi after exchanging agreements.”By combining these strengths, we reduce strategic dependencies, at a time when trade is increasingly weaponised,” she added.Bilateral trade in goods reached 120 billion euros ($139 billion) in 2024, an increase of nearly 90 percent over the past decade, according to EU figures, with a further 60 billion euros ($69 billion) in trade in services.Under the agreement, India is expected to ease market access, and European firms will get privileged access to the Indian financial services and maritime transport market, the bloc said.- ‘Highest level of access’ -Tariffs on cars will be gradually lowered from a top rate of 110 percent to as low as 10 percent — with a quota of 250,000 vehicles — while duties on wines progressively go down from 150 percent to as low as 20 percent.Currently at 50 percent, tariffs on processed foods — including pasta and chocolate — will be eliminated, according to the EU.Von der Leyen said she expected exports to India to double, and that the EU would “gain the highest level of access ever granted to a trade partner in the traditionally protected Indian market”.For India, it would boost sectors including textiles, gems and jewellery, and leather goods, as well as the service sector, Modi said.The accord comes as both Brussels and New Delhi seek to open up markets in the face of US tariffs and Chinese export controls.”The unprecedented preferential access secured for over 99 percent of Indian exports is a game-changer for Indian industry,” said Chandrajit Banerjee, director general, Confederation of Indian Industry.India is on track to become the fourth-largest economy this year, according to International Monetary Fund projections.New Delhi, which has relied on Moscow for key military hardware for decades, has tried to cut its dependence on Russia in recent years by diversifying imports and pushing its own domestic manufacturing base.Europe is doing the same with regard to the United States.

The European Union and India announced Tuesday that they had struck a “historic” trade deal that Brussels hopes will see exports double to the Asian powerhouse.They had spent two decades negotiating but the return of US President Donald Trump and his hefty tariffs accelerated the push on both sides to seal a deal.Here is what Brussels and New Delhi agreed in what India’s Prime Minister Narendra Modi called the “mother of all deals”:- What benefits for the EU? -Indian tariffs on more than 90 percent of EU goods will be removed or cut.For example, India will progressively reduce levies to between 20 and 30 percent on European wines, down from 150 percent before the agreement.Beer tariffs will drop to 50 percent from 110 percent, while spirits will see future levies of 40 percent, down from up to 150 percent.India will also remove tariffs on EU olive oil — a major export from Spain, Italy and Greece — fruit juice, non-alcoholic beer and processed food including bread, pasta, chocolate and pet food. In a welcome move for one of the bloc’s biggest sectors and especially Germany, tariffs on cars will be gradually lowered from a top rate of 110 percent to as low as 10 percent — with a quota of 250,000 vehicles.And India will eliminate tariffs on aircraft — a potential boon for pan-European aerospace group Airbus — as well as cutting levies to zero on most machinery, medical equipment, chemicals and pharmaceutical products.- How does India benefit? -According to Brussels, the EU’s imports from India comprise mainly machinery and appliances, chemicals, base metals, mineral products and textiles.India said the EU would immediately eliminate duties on products making up the majority of its exports including textiles, leather and footwear, tea, coffee, spices, sports goods, toys, gems and jewellery, and certain marine products.And the EU agreed to phase out tariffs for processed food items as well as arms and ammunition, among other goods.Steel was a thorny issue in negotiations since India is a major exporter. Brussels says the steel makes up seven percent of total Indian exports to the EU.Under the deal, India will benefit from a duty-free quota of 1.6 million tonnes, and New Delhi will relinquish its retaliation rights under the World Trade Organization, a senior EU official said.Another sticking point for India was the EU’s carbon border tax, which aims to ensure foreign producers pay a carbon cost similar to what European companies already pay under the bloc’s internal emissions trading system.Under the deal, the EU agreed to launch a technical dialogue on the tax if needed, and vowed not to treat any other EU partner better than India.The EU has also promised to make it easier for skilled Indian workers to work in the 27-country bloc, agreeing to a memorandum of understanding on mobility covering issues related to seasonal workers, researchers and students, the EU official said.- What doesn’t the deal include? -Sensitive agricultural products are excluded from the new deal.The senior EU official said there were no concessions for sugar, ethanol, rice, soft wheat, beef, chicken meat, milk powders, bananas, honey or garlic.He also said that unlike deals the EU has struck with other partners, there were no chapters on government procurement, on energy and raw materials, or on the liberalisation of investment in manufacturing sectors.India also opposed any chapter on “sustainable development where we focus on social rights and also environmental issues”, the official added.The two partners are discussing a separate agreement on Geographical Indications, the intellectual property rights that link a product’s qualities, reputation or features to its place of origin.This “will help traditional EU farming products sell more in India, by removing unfair competition in the form of imitations”, the EU executive said.India said the deal safeguarded sensitive sectors including dairy, cereals, poultry, soybean meal and certain fruits and vegetables.