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Markets rose on Monday as investors welcomed Chinese plans to kickstart consumption in the world’s number two economy, though worries about Donald Trump’s tariffs war continue to cast a shadow over trading floors.The gains follow a much-needed rally on Wall Street that was stoked by optimism US lawmakers would pass a spending bill to avert a painful government shutdown. Eyes were on Beijing as officials were set to outline their plans to kickstart spending by the country’s army of consumers after years of post-Covid weakness that has been a major drag on economic growth.The State Council unveiled a set of initiatives on Sunday that aim to “promote reasonable wage growth by strengthening employment support in response to economic conditions”, according to state news agency Xinhua.The plan looks to boost income with property reforms, stabilise the stock market and encourage lenders to provide more consumption loans with reasonable limits, terms and interest rates.Officials were also looking at raising pension benefits, establishing a childcare subsidy system, and ensuring workers’ rights to rest and holidays are legally protected.The move comes after data showed consumer prices dropped into deflation in February for the first time in a year, while producer prices continued to fall.However, observers warned that leaders had a tough job ahead of them amid Trump’s trade war.”While fiscal spending targeting domestic demand has expanded, government support is limited,” said economists at Moody’s Analytics, adding that “mercurial US economic policies are set to drag on global trade and hit China”.”With China firmly in US President Donald Trump’s sights, deflation concerns in China will worsen. The chaos of tariffs and rising unemployment will keep consumer spending weak, denting inflation’s demand drivers.”Manufacturers will have to look closer to home to sell tariff-targeted products. That combination — weaker demand and more domestic supply — will be a handbrake on price growth.”- Fed projections -Data on Monday provided a little support, with retail sales up slightly more than expected in the first two months of the year, while industrial production also topped estimates.Hong Kong gained to build on a blockbuster start to the year fuelled by a chase into Chinese tech giants, while Shanghai, Tokyo, Sydney, Singapore, Seoul, Taipei, Mumbai and Manila also enjoyed healthy buying.London and Paris edged up at the open while Frankfurt was flat.Gold was sitting around $2,985 per ounce, having broken to a record high near $3,005 on Friday owing to a rush into safe havens as traders fret over Trump’s tariffs.All three main indexes on Wall Street ended on the front foot on Friday on optimism a government shutdown would be averted. Later in the day lawmakers passed the spending bill that will keep business going through to September.Traders are also looking ahead to the Federal Reserve’s next policy decision as policymakers try to navigate Trump’s tariffs campaign, which some economists warn could reignite inflation and tip the economy into recession.While the bank is expected to stand pat on interest rates, it will release its summary of economic projections and its outlook for borrowing costs this year.The gathering comes after a consumer survey released by the University of Michigan last week said expectations for the future “deteriorated” with “many consumers”. It cited a “high level of uncertainty around policy and other economic factors”.- Key figures around 0815 GMT -Tokyo – Nikkei 225: UP 0.9 percent at 37,396.52 (close)Hong Kong – Hang Seng Index: UP 0.8 percent at 24,145.57 (close)Shanghai – Composite: UP 0.2 percent at 3,426.13 (close)London – FTSE 100: UP 0.2 percent at 8,647.67Euro/dollar: DOWN at $1.0872 from $1.0884 on FridayPound/dollar: DOWN at $1.2932 from $1.2936Dollar/yen: UP at 148.92 yen from 148.62 yenEuro/pound: DOWN at 84.08 pence from 84.14 penceWest Texas Intermediate: UP 0.8 percent at $67.70 per barrelBrent North Sea Crude: UP 0.7 percent at $71.10 per barrelNew York – Dow: Up 1.7 percent at 41,488.19 (close)

China’s economy charted an uneven trajectory in the first two months of the year, a slew of key indicators showed Monday, muddying Beijing’s drive to boost flagging consumption.Officials have looked in recent months to revive confidence in the world’s second-largest economy, which has been beset by persistent property sector woes and is now under increasing pressure from fresh trade tensions with the United States.Data from Beijing’s National Bureau of Statistics (NBS) on Monday offered some positive signs, showing retail sales — a key measure of consumer sentiment — increased four percent year-on-year during January and February combined.However, data also showed that unemployment rose, while housing prices continued to fall in most major cities.”In the first two months, with the sustained effects of macro policies, the national economy maintained the new and positive development,” the NBS said in a statement.But, it warned, “domestic effective demand is weak, (and) some enterprises face difficulties in production and operation”.”The foundation for sustained economic recovery and growth is not strong enough,” it said.The surveyed urban unemployment rate — China’s main metric for measuring how many are out of work — rose to 5.4 percent in February, the NBS said, up 0.2 percentage points from the previous month.That was above the 5.1 percent forecast by Bloomberg and was the highest recorded in two years.And, in a worrying sign for the property sector, an NBS price index for new commercial homes decreased year-on-year in 68 of 70 large and medium cities during February.- ‘Mixed messages’ -China’s statistics authorities combine many economic indicators for the first two months of the year to account for potential distortions caused by the annual Lunar New Year holiday.Industrial production in January and February also rose 5.9 percent year-on-year, data showed, slowing from the 6.2 percent growth in December.Beijing said this month it is targeting total growth this year of five percent — the same as last year and a goal considered ambitious by many economists.Faced with an intensified trade war under US President Donald Trump, Chinese officials are now under pressure to boost domestic consumption to reduce the economy’s traditional reliance on exports.Since taking office in January, Trump has slapped tariffs amounting to a 20 percent hike on Chinese overseas shipments, which last year reached record levels.”The international environment will become more complex and severe in the next stage,” NBS spokesman Fu Linghui told a news conference after Monday’s data release.”But the general trend of international cooperation and common wins will not change,” Fu said.The government released an action plan on Sunday it hopes can overcome low consumer demand, including measures such as property reform and childcare subsidies.”The macro data released today show mixed messages,” said Zhiwei Zhang, president and chief economist at Pinpoint Asset Management.Activity data on industrial production and retail sales showed “consistent signals and beat expectations”, he wrote, although the rise in unemployment to its highest level in two years was “unexpected”.”Unemployment is often a lagging indicator, hence it may improve if more proactive fiscal policy helps to keep the activity buoyant in coming months,” Zhang said.”The risk to the economy is the damage from higher US tariffs on China’s exports which will likely show up in the trade data over the next few months.”

Asian markets rose on Monday as investors welcomed Chinese plans to kickstart consumption in the world’s number two economy, though worries about Donald Trump’s tariffs war continue to cast a shadow over trading floors.The gains follow a much-needed rally on Wall Street that was stoked by optimism US lawmakers would pass a spending bill to avert a painful government shutdown. Eyes were on Beijing as officials were set to outline their plans to kickstart spending by the country’s army of consumers after years of post-Covid weakness that has been a major drag on economic growth.The State Council unveiled a set of initiatives on Sunday that aim to “promote reasonable wage growth by strengthening employment support in response to economic conditions”, according to state news agency Xinhua.The plan looks to boost income with property reforms, stabilise the stock market and encourage lenders to provide more consumption loans with reasonable limits, terms and interest rates.Officials were also looking at raising pension benefits, establishing a childcare subsidy system, and ensuring workers’ rights to rest and holidays are legally protected. The move comes after data showed consumer prices dropped into deflation in February for the first time in a year, while producer prices continued to drop.However, observers warned that leaders had a tough job ahead of them amid Trump’s trade war.”While fiscal spending targeting domestic demand has expanded, government support is limited,” said economists at Moody’s Analytics, adding that “mercurial US economic policies are set to drag on global trade and hit China”. “With China firmly in US President Donald Trump’s sights, deflation concerns in China will worsen. The chaos of tariffs and rising unemployment will keep consumer spending weak, denting inflation’s demand drivers. “Manufacturers will have to look closer to home to sell tariff-targeted products. That combination — weaker demand and more domestic supply — will be a handbrake on price growth.”- Fed projections -Data on Monday provided a little support, with retail sales up more slightly than expected last month and industrial production also topping estimates.Hong Kong rallied more than one percent, building on a blockbuster start to the year fuelled by a chase into Chinese tech giants, while Shanghai, Tokyo, Sydney, Singapore, Seoul, Taipei, Manila and Jakarta also enjoyed healthy buying.Gold was sitting just below $3,000 an ounce, having broken to a record high near $3,005 on Friday owing to a rush into safe havens as traders fret over Trump’s tariffs.All three main indexes on Wall Street ended on the front foot on Friday on optimism a government shutdown would be averted. Later in the day lawmakers passed the spending bill that will keep business going through to September.Traders are also looking ahead to the Federal Reserve’s next policy decision as policymakers try to navigate Trump’s tariffs campaign, which some economists warn could reignite inflation and tip the economy into recession.While the bank is expected to stand pat on interest rates, it will release its summary of economic projections and its outlook for borrowing costs this year.The gathering comes after a consumer survey released by the University of Michigan last week said expectations for the future “deteriorated” with “many consumers”. It cited a “high level of uncertainty around policy and other economic factors”.- Key figures around 0230 GMT -Tokyo – Nikkei 225: UP 1.1 percent at 37,475.24 (break)Hong Kong – Hang Seng Index: UP 1.3 percent at 24,262.21Shanghai – Composite: UP 0.4 percent at 3,431.79Euro/dollar: DOWN at $1.0880 from $1.0884 on FridayPound/dollar: UP at $1.2938 from $1.2936Dollar/yen: DOWN at 148.59 yen from 148.62 yenEuro/pound: DOWN at 84.11 pence from 84.14 penceWest Texas Intermediate: UP 1.1 percent at $67.91 per barrelBrent North Sea Crude: UP 1.0 percent at $71.29 per barrelNew York – Dow: Up 1.7 percent at 41,488.19 (close)London – FTSE 100: UP 1.1 percent at 8,632.33 (close)

Chinese internet search giant Baidu released a new artificial intelligence reasoning model Sunday and made its AI chatbot services free to consumers as ferocious competition grips the sector.Technology companies in China have been scrambling to release improved AI platforms since start-up DeepSeek shocked its rivals with its open source and highly cost-efficient model in January.In a post on WeChat, Baidu announced the launch of its latest X1 reasoning model — which the company claims performs similarly to DeepSeek’s but for lower cost — and a new foundation model, Ernie 4.5.Baidu also made its AI chatbot Ernie Bot free for individual users more than two weeks ahead of schedule. Previously, users had to pay a subscription to access the company’s latest AI models via Ernie Bot.Ernie 4.5 “outperforms” US-based OpenAI’s GPT-4.5 model in “multiple benchmarks”, while Ernie X1 features “enhanced capabilities in understanding, planning, reflection, and evolution”, Baidu said.The Beijing-based company was one of China’s first to roll out a generative AI platform publicly, in 2023, but rival chatbots from companies such as TikTok owner ByteDance and Moonshot AI have since gained more users.Baidu faces stiff competition in the consumer-facing AI sector where startup DeepSeek shook up the industry at home and abroad with a model that performed comparably to competitors such as US-made ChatGPT, but cost much less to develop.Since then, Chinese companies and local government agencies have rushed to incorporate DeepSeek’s open-source model into their work, while other technology companies have been playing catch-up.Baidu itself has integrated DeepSeek’s R1 reasoning model into its search engine.In February, WeChat owner Tencent released a new AI model that it claimed answers queries faster than DeepSeek, even as it incorporated its rival’s technology into its messaging platform.The same month, Alibaba, which has partnered with Apple to develop AI for the US company’s phones in China, said it would invest 380 billion yuan ($52 billion) in AI and cloud computing over the next three years.Alibaba this month also released a new version of its AI assistant app powered by its open-source Qwen reasoning model.Baidu has also announced plans to follow DeepSeek’s lead by making its Ernie AI models open-source from June 30.

At first glance, the office desk could belong to any Chinese executive — an ashtray, mini-flags, a golden sculpture inscribed with the character for “integrity”, and a picture of a local celebrity.Instead, it is part of a defiant art show challenging Hong Kong’s stuffy power structures, held in an office tower at the heart of a finance district famous for its long hours and cut-throat competition.The group exhibition — named “RE:URGENT” in mockery of corporate-speak — is meant to “subvert the office space that we are working in every day”, said curator Renee Lui, managing director of Young Soy Gallery.The exhibition mirrors a workspace, with four artists given a standard office cubicle to present their work in, and one displaying in the boss’ office.  “This is sort of a really rigid space that people (wouldn’t normally) see as being able to contain creative ideas,” Lui told AFP.The main office is occupied by artist Dominic Johnson-Hill, whose idiosyncratic desktop was inspired by his 28 years doing business in Beijing.”I went to a lot of bosses’ offices,” he said. “I really wanted to sort of copy a lot of that paraphernalia.” His displayed pieces include a surreal digital wall clock, which tells time in an eerie, robotic voice. Next to its numbers is a picture of people looking down at their phones whilst queuing to enter a coffin store. Johnson-Hill came across such traditional shops in a Hong Kong neighbourhood and was inspired to create the piece, which he said poked fun at aimless work culture.”I thought how wonderful it would be to see people dressed in office attire queuing… (it’s) a ridiculous idea that was quite playful,” he said. In another cubicle, artist Riya Chandiramani sits role-playing as an “unpaid intern” who dreams of starting a feminist revolution. In a painting, she imagines herself as the Hindu goddess Kali, forced into a treacherous game of snakes and ladders set in the workplace.”The numbers also represent ages, and so there is also that aspect of women not being allowed to age,” Chandiramani said. – ‘Rebels still allowed’ -The show is taking place during Hong Kong’s “Art Month”, headlined by art fairs which draw wealthy buyers from around the world.But gallery co-founder Shivang Jhunjhnuwala said he decided to ditch the fairs after two years because of high exhibition costs and “a lack of confidence in the art market”.The show is pushing against the mainstream in its thematic matter too. In one corner, almost unnoticed, is a palm-sized paper cutout of Chinese President Xi Jinping, trapped within multiple frames, by pseudonymous artist Louie Jaubere. “The people are not in control of what the state dictates,” the artist said. “But it is not targeted at China; it generally represents government or state control.”Hong Kong’s freedom of expression and political rights have been whittled away since Beijing imposed a sweeping national security law in 2020 after large and sometimes violent protests the year before. At the show’s opening, retired architect Serena Chan said she appreciated the show’s sense of humour.”The other rebels are all gone,” she said. “Rebels in art are probably still allowed, so let’s have more of that.”

Hong Kong conglomerate CK Hutchison is under renewed pressure from Beijing after selling its Panama Canal ports, with Chinese authorities publishing newspaper criticism of the deal for the second time in three days.Last week the business empire of Hong Kong’s richest man, Li Ka-shing, sold most of its ports operations — including those in the canal — to a US-led consortium following pressure from US President Donald Trump.In a statement, CK Hutchison Holdings said it would offload a 90-percent stake in the Panama Ports Company and sell a slew of other non-Chinese ports to a group led by giant asset manager BlackRock for $19 billion in cash.On Saturday, the Hong Kong and Macao Work Office — the Beijing-based authority in charge of Hong Kong affairs — reposted a newspaper editorial titled “Great entrepreneurs have always been outstanding patriots”.The article, originally published by the Beijing-backed newspaper Ta Kung Pao in Hong Kong, said many Chinese people have questioned “how so many important ports can be so easily handed over to ill-meaning American forces”.”If (entrepreneurs) fail to see the true nature of American politicians… and choose to dance with them, perhaps they can do a mega-deal and get rich for a while, but in the end they have no future and will be scorned by history,” the piece read.The same article was also republished in full on Saturday by the Liaison Office, the top Beijing authority based in Hong Kong.- ‘Choose a side’ -CK Hutchison stocks in Hong Kong plunged more than six percent on Friday after Chinese authorities republished an op-ed telling the company to choose “which side it stands on”.That older article appeared in the commentary section of Thursday’s Ta Kung Pao, which is owned by a subsidiary of the Liaison Office.In contrast, Saturday’s editorial was excerpted on the front page and its full text ran on page three.The paper’s website published three more opinion pieces by outside contributors on Sunday morning, all critical of the deal.CK Hutchison has not responded to AFP’s request for comment.For months, Trump has complained that China controls the Panama Canal and that American vessels were overcharged for using it, even refusing to rule out a military invasion of Panama to “take back” the vital waterway.Before the sale, CK Hutchison’s subsidiary in Panama had managed two of the five ports at the canal — one at Cristobal and the other at Balboa — via a government concession since 1997.The ports transaction was “purely commercial… and wholly unrelated to recent political news”, co-managing director Frank Sixt said when the deal was announced.China’s foreign ministry spokesperson Lin Jian declined to comment on the deal earlier this month.The Hong Kong government has said it “never interfered in the commercial operation of Hong Kong companies”.CK Hutchison Holdings is one of Hong Kong’s largest conglomerates, spanning finance, retail, infrastructure, telecoms and logistics.

The creation of a “Strategic Bitcoin Reserve” in the United States is further proof of President Donald Trump’s support for the cryptocurrency sector.Trump earlier this month signed an executive order establishing the reserve, which White House crypto chief David Sacks has likened to “a digital Fort Knox”, comparing it to the stockpiling of gold bars at the US military base.Gold is held in reserves by countries worldwide as the metal is seen as a safe-haven asset, protecting against financial instability such as high inflation.The metal on Friday surpassed $3,000 per ounce for the first time, boosted by an uncertain economic outlook amid Trump’s tariffs.Gold reserves can help also stabilise a country’s currency, while bars are used as collateral for loans and transactions.- How will US bitcoin reserve work? -It is to be funded by about 200,000 bitcoins, worth around $17 billion in total, that have been seized in the United States as a result of civil and criminal cases.The reserve will be virtually secured for an indefinite time.Additional bitcoin can be added to the reserve as long as such action is “budget-neutral”, thus not costing the taxpayer. – Announcement fails to impress -The price of bitcoin initially slid after Trump signed the executive order but has since stabilised.Analysts have blamed the lack of support on a failure to immediately buy more bitcoin.Dessislava Aubert, an analyst at crypto data provider Kaiko, told AFP that “legally” the US government must return bitcoin to all victims identified as suffering from a hack.According to Aubert, “a big chunk” of the bitcoin held by the United States — estimated at around 198,000 tokens — would have to be returned to victims of a hack at crypto exchange Bitfinex in 2016.Sector watchers are also waiting to see if other digital tokens will be added to the reserve, which is possible according to the executive order.Trump has said that bitcoin’s nearest rival, ether, along with three other tokens — XRP, Solana and Cardano — could be added.- Reason to copy gold reserve? -Critics of the US bitcoin reserve point out that, unlike gold, cryptocurrencies are risky assets and have no intrinsic value.However, Sacks believes that by storing bitcoin over time, the government would protect itself from the cryptocurrency’s massive short-term volatility.Meanwhile, Stephane Ifrah, an investment director at crypto platform Coinhouse, said that bitcoin, like gold, can profit from its rarity thanks to a limited 21 million tokens.An advantage of the bitcoin reserve is its transparency, since the level of tokens will be known at all times — unlike the amount of gold placed in Fort Knox.Additionally, with the bitcoin reserve, “we’re dealing with a rare asset that’s much more suited to today’s world”, Ifrah told AFP.Prominent cryptocurrency critic, Molly White, believes the “true reason” for the reserve “is a way to drive interest in the crypto industry”, which could financially benefit investors.Trump has been accused by some of showing a conflict of interest, having vowed ahead of being elected to make the United States the “bitcoin and cryptocurrency capital of the world”. The Financial Times reported that Trump earned $350 million from launching a meme coin, $TRUMP, to coincide with his inauguration.The Wall Street Journal has reported that the Trump family discussed acquiring a possible stake in the Binance platform — a report denied by the crypto exchange’s founder.- Other country plans -Brazil is also considering the creation of a cryptocurrency reserve, an idea recently ruled out by the Swiss central bank.Governments around the world are partaking in cryptocurrency activity, notably by selling digital assets seized in court cases, as was the case in Germany last year with 50,000 bitcoins.El Salvador made bitcoin one of its official currencies, reversing the decision this year owing to a lack of take-up by citizens.Bhutan holds nearly $900 million worth of bitcoin, equivalent to nearly 30 percent of the kingdom’s gross domestic product.

Tariffs imposed by the Trump administration will not eject fast-fashion juggernaut Shein from the US market, its executive chairman Donald Tang has told AFP.The head of the online platform, which has come in for scrutiny over its environmental footprint and allegations of human rights violations, also insisted that the company does not use forced labour.- ‘Customers not affected’ -“We’re not focusing on customs policy,” Tang said about the new US import levies, speaking during a visit to France this week.”We will find a way to deliver the goods,” he added, saying that Shein’s “business model” had seen the company through other global trade upsets like the coronavirus pandemic.This time, however, China is directly in Washington’s crosshairs, with 20-percent additional tariffs levied on products imported from the country.The Trump administration has also cast doubt on whether imported packages worth less than $800 will continue to enjoy duty-free status.Shein — a firm founded in China but now headquartered in Singapore — and Temu have for years surfed on that practice to send tens of billions of dollars worth of product into the US from their network of Chinese factories.Tang said that whatever happens, “we will do our best to make sure the customers’ interest and customers’ experience is not affected” — without detailing any specifics.- ‘No forced labour’ -Like other major players in the textile sector, Shein has come in for regular allegations of exploiting members of the Uighur minority in the cotton fields and factories of the northwestern Chinese region Xinjiang.”The policy is zero tolerance” on forced labour, Tang told AFP. “We don’t tolerate it at all, no questions asked.”He added that the company had a code of conduct “totally, 100 percent aligned with the International Labour Organization Convention” that it required suppliers to sign.And once deals are in place, “we have international renowned auditors come into the factories with unannounced visits,” Tang said.David Hachfeld of campaign group Public Eye, which has published an investigation into Shein, said the group’s measures had not been enough.”In manufacturing, 75 hours a week was typical for most workers,” Hachfeld said, with “one and a half free days per month”.Amnesty International has also called for Shein to be more transparent.Any company with operations in Xinjiang should set up human rights checks, the campaign group has argued.”If Shein has not ndertaken this crucial step, it should pause its operations in Xinjiang,” Amnesty told AFP by email.”Conversely, if the company is confident it has eliminated such risks, it should publicly disclose how this has been verified”.- Market flotation -Many investors expect Shein to float on a major global stock market sometime this year, with London seen as the most likely venue.But Tang was not giving away any hints about the plans — beyond saying that a listing would reinforce trust.”We wanted to embrace the universal mechanism for accountability and transparency, to have transparency as a requirement, not optionality,” he told AFP, hoping to stoke “public trust, which is crucial for our long-term growth”.The head of the British Parliament’s Business and Trade Committee said in January he and other members were “horrified” by Shein’s lack of transparency about where its products come from.Tang said that the company has since responded to MPs’ questions.The brand recently announced it will pump 200 million euros ($220 million) into European circular-economy and recycling projects, in a bid to polish its image.”We have been meeting different companies in Paris and other cities in France and talking to the technology leaders” in the sector, Tang said — without naming the prospective partners.Shein will likely face a hard sell when it comes to European environmental groups.Friends of the Earth calculated in 2023 that Shein’s operations — which it said add around 7,200 new items for sale per day on average — emit “between 15,000 and 20,000 tonnes of carbon dioxide” every 24 hours.The European Union and individual countries including France are already weighing regulations to limit waste from fast-fashion giants.

Gold rose above $3,000 for the first time Friday as President Donald Trump’s trade wars boosted demand for safe-haven assets, while stock markets bounced on signs US lawmakers would avert a government shutdown.Major US indices opened higher and remained in positive territory through the day, shrugging off a downcast reading on US consumer sentiment.European stock markets were also given a lift after Germany moved closer to approving a massive infrastructure and defense spending program.In Washington, hours before a deadline to push a Republican spending bill through, Senate Democratic leader Chuck Schumer dropped a threat to block it.The package would keep the government operating through September, but Democrats had come under pressure from supporters to defy the plan, which they say is full of harmful spending cuts.Stocks gained support from “a burgeoning sense that a government shutdown will be averted after Senator Schumer said he will vote for House-passed continuing resolution,” said Patrick O’Hare, analyst at Briefing.com.A consumer survey by the University of Michigan said expectations for the future “deteriorated,” with “many consumers”: citing a “high level of uncertainty around policy and other economic factors.”Paris and Frankfurt both rebounded after losses the previous day on US tariff threats. Germany’s likely next chancellor Friedrich Merz said his conservative party had struck a deal with the Greens on boosting defense and infrastructure spending, paving the way for the plan’s approval in parliament.”Germany is poised to pursue essential structural reforms while hoping for an end to the economic downturn,” said Jochen Stanzl, an analyst at CMC Markets. “Investor sentiment shifted dramatically today.”- Times of uncertainty -Gold, a haven in times of uncertainty, rose to as much as $3,004 an ounce before falling back to just under $3,000.The precious metal was “boosted on increased haven demand amid trade war risks and recent stock market volatility”, said Fawad Razaqzada, an analyst at City Index and Forex.com.In the latest salvo, Trump threatened to impose 200 percent tariffs on wine, champagne and other alcoholic beverages from European Union countries.Wall Street has been hammered in recent sessions by trade tensions, with the S&P 500 slipping into a technical correction Thursday, having fallen more than 10 percent from a record high it hit just last month.The broad-based S&P 500 finished at 5,638.94, up 2.1 percent for the day, but down 2.3 percent for the week. Some analysts warned that Friday’s rebound would be short-lived.”Recent rallies have run into a buzzsaw of selling pressure,” said Nathan Peterson, an analyst at Charles Schwab. “Tariff escalations, a potential government shutdown, and persistent growth concerns due to trade policy make it difficult to sustain any kind of a bounce.”In company news, shares in Gucci-owner Kering plunged more than 11 percent in Paris as the group appointed a new creative director for its struggling flagship brand.Shares in BMW were in the red as the German automaker warned that trade tensions between the United States, Europe and China would cost the company $1 billion this year.- Key figures around 2040 GMT -New York – Dow: Up 1.7 percent at 41,488.19 (closeNew York – S&P 500: UP 2.1 percent at 5,638.94 (close)New York – Nasdaq Composite: UP 2.6 percent at 17,754.09 (close) London – FTSE 100: UP 1.1 percent at 8,632.33 (close)Paris – CAC 40: UP 1.1 percent at 8,028.28 (close)Frankfurt – DAX: UP 1.9 percent at 22,986.82 (close)Tokyo – Nikkei 225: UP 0.7 percent at 37,053.10 (close)Hong Kong – Hang Seng Index: UP 2.1 percent at 23,959.98 (close)Shanghai – Composite: UP 1.8 percent at 3,419.56 (close)Euro/dollar: UP at $1.0884 from $1.0852 on ThursdayPound/dollar: DOWN at $1.2936 from $1.2952Dollar/yen: UP at 148.62 yen from 147.81 yenEuro/pound: UP at 84.14 pence from 83.79 penceBrent North Sea Crude: UP 1.0 percent at $70.58 per barrelWest Texas Intermediate: UP 1.0 percent at $67.18 per barrel

China-based DeepSeek shook up the world of generative artificial intelligence (GenAI) early this year with a low-cost but high-performance model that challenges the hegemony of OpenAI and other big-spending behemoths.Since late 2022, just a handful of AI assistants — such as OpenAI’s ChatGPT, Anthropic’s Claude, and Google’s Gemini — have reigned supreme, becoming ever more capable thanks to multi-billion-dollar investments in engineers, data centers, and high-performance AI chips.But then DeepSeek upended the sector with its R1 model, which it said cost just $6 million or so, powered by less-advanced chips.While specialists suspect DeepSeek may have cost more than its creators claim, its debut fueled talk that GenAI assistants are becoming just a regular commodity, thanks to innovation and market forces.”The first company to train models must expend lots of resources to get there,” said CFRA senior equity analyst Angelo Zino.”The second mover can get there cheaper and more quickly.”At a HumanX AI conference in Las Vegas this week, Hugging Face co-founder Thomas Wolf said it is getting less expensive to launch GenAI models — and less important which one people use.”I feel like we are moving to this multi-model world, which is a good thing,” Wolf said, pointing to the muted reception given to the most recent version of ChatGPT.- Stay flexible -At the conference, OpenAI chief product officer Kevin Weil pushed back against the notion that all models are created equal.”That’s actually not true,” Weil said.”The days of us having a 12-month lead are probably gone, but I think we have a three- to six-month lead, and that is really valuable.”Weil said OpenAI plans to fight to keep that narrowing edge over its competitors.With 400 million users, San Francisco-based OpenAI has the advantage of being able to use data from massive traffic to continually improve its models, Weil explained.”OpenAI has the Google advantage of being the thing that’s in everybody’s minds,” said Alpha Edison equity firm research director Fen Zhao.Jeff Seibert, chief of the accounting and AI start-up Digits, agreed that OpenAI will stay ahead of the pack but added that he expects the gap to eventually close.”For advanced use cases, yes, there will be a lot of advantages,” he said of OpenAI’s position.”But for a lot of stuff, it won’t matter as much.”Seibert advises entrepreneurs to design their technology to allow them to swap out GenAI models, affording them flexibility in a quickly changing industry.- Cash burn -Improved use of chips and new optimization techniques have driven down the cost of designing the large language models (LLMs) that power ChatGPT, Gemini and their rivals.An open-source approach taken by some LLMs is credited with helping accelerate innovation by making the software free for anyone to tinker with and improve.The valuation of closed-model startups such as Anthropic and OpenAI has likely peaked as their “first-mover advantage dissipates,” according to Zino.Japanese investment colossus SoftBank pumped $40 billion into OpenAI in February in a deal that valued the startup at $300 billion — almost double what it was last year.“If you’re burning a billion dollars a month, which I think OpenAI is, you have to keep raising money,” said Jai Das of venture capital firm Sapphire Ventures.”I have a hard time seeing how they get to a point where revenues are higher than the amount of cash they burn.”Anthropic raised $3.5 billion in early March, valuing the champion of responsible AI at $61.5 billion.