Afp Business Asia

Tokyo’s tariffs envoy departed Wednesday for a second round of negotiations in Washington, where Japan could offer concessions such as tweaking vehicle import procedures to secure relief from Donald Trump’s trade levies.Ryosei Akazawa may also reportedly offer to buy more US corn and soybeans, or continue discussions on developing liquefied natural gas (LNG) fields in Alaska.Japan, a key US ally and its biggest investor, is subject to the same 10 percent baseline tariffs imposed on most countries plus steeper levies on cars, steel and aluminium.Trump also announced “reciprocal” tariffs on Japan of 24 percent, but later put them on pause for 90 days along with those on other nations except China.Akazawa will hold talks Thursday with US Treasury Secretary Scott Bessent and other officials, following an initial meeting in mid-April.”There has been no change to our stance of strongly demanding that all the tariffs be scrapped. The main goal is to achieve that, and we can’t budge,” he said Monday.He told reporters at the airport on Wednesday that “Japanese companies are losing money each and every day” because of US tariffs.”When I spoke to the head of an automaker, the person told me that a million dollars is being lost every hour,” he said.”I hope to make progress, whether it is one or two steps forward,” by targeting a “win-win relationship”.Trump has complained about Japan’s safety testing rules for US vehicle imports, and local media said simplified screening processes could be a bargaining chip for Tokyo.LNG and agricultural imports could also be on the table.But buying more US rice — another expected option — could be “politically difficult” because Japanese farmers are a strong support base for the ruling party, Norihiro Yamaguchi of Oxford Economics told AFP.Trump has repeatedly said he wants a stronger yen to make US exports more competitive, although Akazawa said the Japanese currency was not discussed at the first talks.However, “I don’t really read a lot from it, because especially on the currency market, to make a big surprise makes things bigger”, Yamaguchi said.The yen has risen significantly since Trump’s tariffs were announced — it was trading at 142 for a dollar on Wednesday, compared with 158 in mid-January.

China’s factory activity shrank this month, official data showed Wednesday, with Beijing blaming a “sharp shift” in the global economy as it fights a mounting trade war with the United States.Punishing US tariffs that have reached 145 percent on many Chinese products came into force in April, while Beijing has responded with fresh 125 percent duties on imports from the United States.And the impact of the measures began to show through in April, with the Purchasing Managers’ Index — a key measure of industrial output — falling to 49 in April, according to the National Bureau of Statistics (NBS), below the 50-point mark that separates growth and contraction.The reading for April was down from March’s 50.5, which was the highest in 12 months, and represented a steeper decline than the 49.7 forecast in a Bloomberg survey.”In April, affected by factors such as a high base from earlier rapid manufacturing growth and a sharp shift in the external environment, the manufacturing PMI fell,” NBS statistician Zhao Qinghe said in a statement.The non-manufacturing PMI, which measures activity in the services sector, came in at 50.4, down from 50.8 in March.Economists have warned that the disruption in trade between the tightly integrated US and Chinese economies could threaten businesses, increase prices for consumers and cause a global recession.Chinese exports soared more than 12 percent last month as businesses rushed to get ahead of the swingeing tariffs.”The weak manufacturing PMI in April is driven by the trade war,” Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, wrote in a note.”The macro data in China and the US will weaken further… as the trade policy uncertainty delays business decisions,” he added.China’s economy, the world’s second-largest, has struggled to fully recover since the Covid-19 pandemic and is also grappling with sluggish domestic demand and a protracted property sector crisis.”China’s economy is coming under pressure as external demand cools,” said Zichun Huang, China Economist at Capital Economics, in a note.”Although the government is stepping up fiscal support, this is unlikely to fully offset the drag, and we expect the economy to expand just 3.5 percent this year,” Huang added.Authorities last year announced a slew of aggressive stimulus measures aimed at boosting growth including rate cuts and the easing of some home purchasing restrictions.And in March, leaders at a key political meeting vowed to create 12 million new urban jobs in 2025.They also said they would aim for growth this year of five percent — the same as 2024 and a goal considered ambitious by many economists.

Stocks started limply Wednesday as investors struggled to match Wall Street’s rally, with data showing Chinese factory activity contracted this month at its fastest pace for nearly two years as Donald Trump’s trade war kicked in.While markets have recovered some of the losses suffered after the US president’s “Liberation Day” tariffs announcement on April 2, uncertainty still rules as countries look to cut deals to avert the worst of Washington’s ire.China has pointedly not flown to the United States in a bid to pare back the levies of up to 145 percent imposed on its goods, instead hitting back with 125 percent tolls of its own.But the effect of the measures began to shine through in April, with data Wednesday showing manufacturing activity contracted at its fastest pace since July 2023 — a month after expanding at its quickest rate for 12 months.That came after Chinese exports soared more than 12 percent last month as businesses rushed to get ahead of the swingeing tariffs.And observers fear things will only worsen.”The weak manufacturing PMI in April is driven by the trade war,” Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, wrote in a note.”The macro data in China and the US will weaken further… as the trade policy uncertainty delays business decisions,” he added.Shares fell in Hong Kong and Shanghai, while they were also off in Seoul, Wellington and Jakarta.Tokyo rose thanks to a surge in Sony fuelled by a report that it is considering spinning off its chip unit, raising expectations that such a move would unlock value in the Japanese entertainment and electronics company.Sydney, Singapore, Taipei and Manila also edged up.Equities have clawed back a lot of the huge losses suffered at the start of the month as Trump has shown a little more flexibility on some issues and as governments hold talks with Washington.US Commerce Secretary Howard Lutnick said he had reached a deal with a country but did not name it, while Treasury Secretary Scott Bessent said progress had been made with India, South Korea and Japan.But Saxo chief investment strategist Charu Chanana warned economic data will likely worsen.”We’ve probably seen peak tariff rates, but not peak tariff uncertainty,” she said in a commentary. “The hard data still reflects the impact of front-loaded demand, as companies and consumers rushed to buy goods ahead of expected tariff increases. “We haven’t yet seen the real data showing the drag from sustained uncertainty and elevated tariff costs. As that uncertainty filters through business decisions, we expect a more meaningful slowdown in real economic activity — in production, hiring, and investment.”In short, the rate shock may be behind us, but the real growth damage is just starting to unfold.”Investors are awaiting the release of key US inflation and economic growth data due later in the day, while jobs figures are lined up for Friday.This week also sees the release of earnings from Wall Street titans including Microsoft, Apple, Meta and Amazon, which observers hope will provide an insight into how corporate America is dealing with the tariffs crisis, and how they expect to fare.- Key figures at 0230 GMT -Tokyo – Nikkei 225: UP 0.2 percent at 35,902.51 (break)Hong Kong – Hang Seng Index: DOWN 0.4 percent at 21,919.30Shanghai – Composite: DOWN 0.1 percent at 3,283.97Euro/dollar: DOWN at $1.1371 from $1.1390 on TuesdayPound/dollar: DOWN at $1.3394 from $1.3399 Dollar/yen: UP at 142.39 yen from 142.22 yenEuro/pound: DOWN at 84.91 pence from 85.08 penceWest Texas Intermediate: DOWN 0.2 percent at $60.31 per barrelBrent North Sea Crude: FLAT at $64.25 per barrelNew York – Dow: UP 0.8 percent at 40,527.62 (close)London – FTSE 100: UP 0.6 percent at 8,463.46 (close)

South Korean tech giant Samsung Electronics reported a better-than-expected 21.7 percent rise in first-quarter net profit on Wednesday as consumers rushed to buy smartphones under the looming threat of US tariffs.The firm said it expected improved earnings in the second half if “uncertainties are diminished”.The results come as Seoul and Washington work to craft a “trade package” intended to roll back US President Donald Trump’s new tariffs ahead of the July 8 expiration of a reciprocal tariff freeze.Samsung Electronics is the flagship subsidiary of South Korean giant Samsung Group, by far the largest of the family-controlled conglomerates that dominate business in Asia’s fourth-largest economy.The world’s largest memory chipmaker reported net profit of 8.22 trillion won ($5.75 billion) for the January–March quarter, up 21.7 percent on-year.Sales rose 10 percent to an all-time quarterly high of 79.14 trillion won and operating profit rose 1.2 percent to 6.7 trillion won on-year, exceeding forecasts according to Yonhap News Agency, which cited its own financial data firm.South Korea — one of the United States’ key trading partners and home to powerhouse chip and auto industries — earlier this month also unveiled an additional $5 billion investment in its semiconductor industry, citing “growing uncertainty” stemming from US tariffs.The figures were “on the back of strong sales of flagship Galaxy S25 smartphones and high-value-added products,” the company said in a statement.”Despite the growing macroeconomic uncertainties due to recent global trade tensions and slowing global economic growth,” Samsung said it “expects its performance to improve in the second half of the year,” assuming “that the uncertainties are diminished”.Analysts also attributed the results in part to record sales of the new Galaxy S25 series smartphone, which launched in February.The firm’s “early introduction of AI features, beginning with the Galaxy S24 and enhanced further in the S25, gave it a strong competitive edge,” Sheng Win Chow, an analyst at Canalys, told AFP.”The combination of native on-device AI capabilities and Google Gemini apps offered users a rich suite of AI functions right out of the box, creating strong pull factors for early adopters.”But experts expressed concerns as more than half of Samsung’s smartphones are manufactured in Vietnam, where steep tariffs of up to 46 percent could be imposed if trade negotiations between Washington and Hanoi break down.According to analyst Chow, more than 90 percent of Samsung’s US smartphone shipments originate from Vietnam, and to effectively mitigate risks, the company “would need to ramp up production and export of higher-end models like the Galaxy S25 series from India”.But “this shift would require time and operational adjustments,” he added.- Trade tensions -Despite more than a year of efforts to close the gap with South Korean rival SK hynix, Samsung has struggled to supply high volumes of high-bandwidth memory (HBM) chips to Nvidia, a leading player in the AI chip market.The company has leaned more on Chinese clients as a result, but the market in China now faces mounting pressure as Washington moves to further tighten chip export rules.Washington has already restricted exports to China, the world’s biggest buyer of chips, of Nvidia’s most sophisticated graphics processing units (GPUs), designed to power top-end AI models.Meanwhile, Chinese startup DeepSeek has emerged as a formidable challenger, making waves in January with its R1 chatbot, matching the performance of its US competitors at a lower cost.”For most countries, excluding China, significantly lowered general tariffs can be expected depending on negotiation,” MS Hwang, a research director at Counterpoint, told AFP.”However, due to strengthened export restrictions on China, there remains pressure (on Samsung) on the second-half sales of products like HBM.”Gloria Tsuen, a Moody’s Ratings vice president and senior credit officer, said Samsung’s “leadership in the semiconductor market had eroded over the last few years,” especially in the “AI and high-end products in its memory segments”.”Concurrently, competition from Chinese companies in low-end memory products is increasing,” she told AFP. “As a result, we expect Samsung’s operating margin to remain moderate.”

Global stocks mostly rose despite fresh signs of a tariff hit to corporate earnings, while Wall Street cheered President Donald Trump’s moves to soften the levies hitting automakers.Trump’s pivot includes limitations on the impact of multiple tariffs on carmakers and a measure to allow carmakers to offset a portion of the levy for two years.All three major US indices posted solid gains, with the S&P 500 adding 0.6 percent.Investors are “encouraged by the Trump decision to be a little more flexible (…) with the autos,” said CFRA Research’s Sam Stovall, who predicted stocks could go higher.”There’s definitely uncertainty, but I believe that the risk is to the upside, meaning that the market has already priced in the impact of the tariffs,” he said.In Europe, the London FTSE 100 index and Frankfurt’s DAX closed higher but the Paris CAC 40 ended in the red.Stocks moved sideways on Monday after notching four straight positive sessions last week as Trump adopted a more conciliatory posture on the trade war with China and said he doesn’t plan to fire Federal Reserve Chair Jerome Powell.But tariff talk has been prominent during earnings season.In Europe, shares in Volvo Cars sank nearly 10 percent after it announced plans to cut costs by almost $2 billion, including through job cuts, as its profits fall.”Tougher market conditions and lower volumes combined with increased price pressure and tariff effects are impacting profitability,” Volvo Cars chief executive Hakan Samuelsson said.Shares in German sportswear giant Adidas fell 2.8 percent as it warned that tariffs would increase prices for its products in the United States.British pharmaceutical giant AstraZeneca said it has begun to move some of its European production to the United States, ahead of Trump’s possible tariffs on the sector, helping its shares rise 0.9 percent.Amazon shares initially slid nearly two percent after the White House slammed the online retailer over a report in Punchbowl News that it would soon tell consumers how much Trump’s tariffs have contributed to the price tag on its goods, branding it a “hostile and political act”. Without fully denying the Punchbowl report, Amazon released a statement saying its low-cost Amazon Haul store had “considered the idea of listing import charges on certain products.” “This was never approved and is not going to happen,” said the statement from Amazon, which finished down 0.2 percent.Elsewhere, oil prices fell further on Tuesday on fears that global trade tensions may lead to a slowdown in economic activity that would hamper energy demand. – Key figures at 2130 GMT -New York – Dow: UP 0.8 percent at 40,527.62 (close)New York – S&P 500: UP 0.6 percent at 5,560.83 (close)New York – Nasdaq: UP 0.6 percent at 17,461.32 (close)London – FTSE 100: UP 0.6 percent at 8,463.46 (close)Paris – CAC 40: DOWN 0.2 percent at 7,555.87 (close)Frankfurt – DAX: UP 0.7 percent at 22,425.83 (close)Hong Kong – Hang Seng Index: UP 0.2 percent at 22,008.11 (close)Shanghai – Composite: DOWN 0.1 percent at 3,286.65 (close)Tokyo – Nikkei 225: Closed for a holidayEuro/dollar: DOWN at $1.1390 from $1.1420 on MondayPound/dollar: DOWN at $1.3399 from $1.3441 Dollar/yen: UP at 142.22 yen from 142.01 yenEuro/pound: UP at 85.08 pence from 84.96 penceWest Texas Intermediate: DOWN 2.6 percent at $60.42 per barrelBrent North Sea Crude: DOWN 2.4 percent at $64.25 per barrelburs-jmb/dw  

Stock markets mostly advanced Tuesday as investors assessed the impact of tariffs on corporate earnings and digested a report that President Donald Trump might spare automakers from some of his levies.Wall Street opened mixed but all three major indices were higher in midday trading.In Europe, the London FTSE 100 index and Frankfurt’s DAX closed higher but the Paris CAC 40 ended in the red.While the White House didn’t launch any trade tirades against other countries, the White House slammed Amazon over reports it would soon tell consumers how much Trump’s tariffs have contributed to the price tag on its goods, branding it a “hostile and political act”. “This is significant,” said Kathleen Brooks, research director at XTB, noting that this was the first time the Trump administration has turned its ire towards a US company that questions its tariffs policy.”Financial markets have been roiled by political interference in the global economy in recent weeks… if the Trump administration is now publicly accusing US companies of hostile acts if they disagree with the President’s US economic policy then this could stop the recent recovery rally in risky assets,” she said.Amazon later said it will not show tariff costs on products.Shares in Amazon fell nearly two percent at the start of trading but recovered much of their losses during morning trading.Investors were also weighing a Wall Street Journal report that the White House will spare automakers — already facing 25-percent tariffs — from further levies, such as those on steel and aluminium. The move is aimed at making sure the various tariffs Trump has unveiled do not stack up on top of each other.The news prompted US auto giant General Motors to push back its earnings conference call to Thursday.It still released its earnings statement on Tuesday, showing its first-quarter profit fell 6.6 percent to $2.8 billion, though it was better than expected.The US automaker also said it was re-examining its 2025 outlook in light of uncertainty over US tariffs.GM shares were down more than two percent in midday trading.In Europe, shares in Volvo Cars sank nearly 10 percent after it announced plans to cut costs by almost $2 billion, including through job cuts, as its profits fall.”Tougher market conditions and lower volumes combined with increased price pressure and tariff effects are impacting profitability,” Volvo Cars chief executive Hakan Samuelsson said.Shares in German sportswear giant Adidas fell 2.8 percent as it warned that tariffs would increase prices for its products in the United States.British pharmaceutical giant AstraZeneca said it has begun to move some of its European production to the United States, ahead of Trump’s possible tariffs on the sector, helping its shares rise 0.9 percent.In Asia, Hong Kong stocks advanced while Shanghai dipped after US Treasury Secretary Scott Bessent told CNBC that negotiations with China were ongoing but said that the ball was in Beijing’s court.Investors are also awaiting earnings from US tech titans this week, including Amazon, Apple, Meta and Microsoft.There are also a number of economic data releases this week, with information released Tuesday showing US consumer confidence has fallen to its lowest level since the onset of the Covid-19 pandemic.Oil prices fell further on Tuesday on fears that global trade tensions may lead to a slowdown in economic activity that would hamper energy demand. – Key figures at 1530 GMT -New York – Dow: UP 0.6 percent at 40,476.80 pointsNew York – S&P 500: UP 0.2 percent at 5,539.89 New York – Nasdaq: UP less than 0.1 percent at 17,376.81 London – FTSE 100: UP 0.6 percent at 8,463.46 (close)Paris – CAC 40: DOWN 0.2 percent at 7,555.87 (close)Frankfurt – DAX: UP 0.7 percent at 22,425.83 (close)Hong Kong – Hang Seng Index: UP 0.2 percent at 22,008.11 (close)Shanghai – Composite: DOWN 0.1 percent at 3,286.65 (close)Tokyo – Nikkei 225: Closed for a holidayEuro/dollar: DOWN at $1.1403 from $1.1424 on MondayPound/dollar: DOWN at $1.3404 from $1.3441 Dollar/yen: UP at 142.21 yen from 142.04 yenEuro/pound: UP at 85.08 pence from 84.99 penceWest Texas Intermediate: DOWN 1.7 percent at $60.98 per barrelBrent North Sea Crude: DOWN 1.7 percent at $63.69 per barrelburs-rl/cw

France wants to start charging non-EU online sellers a handling fee for each low-value package shipped to domestic customers, government ministers said Tuesday as the country copes with an influx of cheap goods from China.Such a fee, of “a few euros” per parcel, would help cover the cost of checking the incoming billions of small packages each year ordered by EU consumers via platforms such as Chinese-founded firms Temu and Shein.In 2024, 4.6 billion packages each worth under 150 euros ($170) entered the EU — more than 145 per second — with 91 percent originating in China.Some 800 million such packages were shipped to France alone last year. Merchandise worth less than 150 euros, excluding VAT, purchased by mail and sent directly from a third country is not subject to EU customs duties.France’s minister for public accounts, Amelie de Montchalin, said during a visit to Paris’s Charles-de-Gaulle airport that the handling fee should be paid “by the importers, the platforms, and not consumers”.France would charge “a small flat rate” per package, which she said would amount to “a few euros” (dollars), or “a few cents” per item purchased.France hopes such a move could come into force next year, with a government official saying that the fees collected “would finance the checks” at points of entry.France is hoping to attract other EU members to the idea to make it harder for platforms to circumvent such a fee.”We can’t do this alone, because if we do this alone the flows will go to another country,” Finance Minister Eric Lombard said during the same visit.”We’re hoping to quickly unite a group of countries that could implement such a measure,” added De Montchalin.The plan is to charge the fee until 2028 when the EU could phase out the customs-free status of packages worth less than 150 euros.cda-gl-max-fmp/jh/sjw/lth

Stock markets advanced on Tuesday following news that Donald Trump plans to spare automakers from some of his wide-ranging tariffs, boosting hopes of a less combative approach to his trade war.Signs of easing trade tensions are also spurring sentiment, as governments line up to negotiate deals with Washington to avert the full force of sweeping tariffs. “On tariffs, the latest newsflow was actually fairly positive at face value, as US officials continued to sound optimistic about potential trade deals,” said Deutsche Bank managing director Jim Reid. “The rhetoric from the administration is still pointing towards negotiations, rather than further escalation,” he added.European markets also reacted to a wave of first-quarter company earnings, with investors closely watching for signs of how tariffs are impacting business outlooks.  Frankfurt rose 0.5 percent and London advanced 0.2 percent. Paris, however, slipped.Market sentiment was buoyed after the Wall Street Journal reported that the White House will spare automakers — already facing 25-percent tariffs — from further levies, such as those on steel and aluminium. The move is aimed at making sure the various tariffs Trump has unveiled do not stack up on top of each other.While uncertainty still rules on trading floors, most Asian markets also made tentative gains on Tuesday.Hong Kong stocks advanced while Shanghai dipped after US Treasury Secretary Scott Bessent told CNBC that negotiations with China were ongoing but said that the ball was in Beijing’s court. Seoul rose as auto makers Hyundai and Kia were boosted by the auto tariff news.Tokyo was closed for a holiday.Investors are also awaiting earnings from US tech titans this week, including Amazon, Apple, Meta and Microsoft.Also on the agenda are key economic indicators, including jobs creation and the Federal Reserve’s preferred gauge of inflation amid warnings the tariffs could reignite prices.On currency markets, Canada’s dollar held steady against its US counterpart as Prime Minister Mark Carney’s Liberal Party won Canada’s election.In company news, French electrical equipment company Schneider Electric shed almost eight percent in Paris after its results fell short of expectations. In London, oil major BP and retailer Associated British Foods both missed earnings estimates, shedding over three percent and six percent, respectively.British pharmaceutical giant AstraZeneca also lost over three percent as its increase in first-quarter profits failed to reassure investors.Oil prices fell further on Tuesday on fears that global trade tensions may lead to a slowdown in economic activity that would hamper energy demand. – Key figures at 1055 GMT -London – FTSE 100: UP 0.1 percent at 8,426.81 pointsParis – CAC 40: DOWN 0.3 percent at 7,550.11Frankfurt – DAX: UP 0.5 percent at 22,383.41Hong Kong – Hang Seng Index: UP 0.2 percent at 22,008.11 (close)Shanghai – Composite: DOWN 0.1 percent at 3,286.65 (close)Tokyo – Nikkei 225: Closed for a holidayNew York – Dow: UP 0.3 percent at 40,227.59 (close)Euro/dollar: DOWN at $1.1377 from $1.1424 on MondayPound/dollar: DOWN at $1.3384 from $1.3441 Dollar/yen: UP at 142.71 yen from 142.04 yenEuro/pound: FLAT at 84.99 pence from 84.99 penceWest Texas Intermediate: DOWN 1.8 percent at $60.95 per barrelBrent North Sea Crude: DOWN 1.7 percent at $63.66 per barrel

Markets rose on Tuesday following news that Donald Trump is set to let auto makers off some of his wide-ranging tariffs, boosting hopes of a less combative approach to his trade war.A month that started with the explosion of Washington’s “Liberation Day” tariffs on April 2 was on course for a more positive close as governments line up to cut deals to avert the full force of the measures.The White House said foreign auto firms paying tariffs of 25 percent for their US car and parts shipments would not face other levies such as those on steel and aluminium, the Wall Street Journal said. Companies will also be reimbursed for fees already paid.The move is aimed at making sure the various tariffs Trump has unveiled do not stack up on top of each other.Commerce Secretary Howard Lutnick said the deal was “a major victory for the president’s trade policy”. He said it rewarded firms “who manufacture domestically while providing runway to manufacturers who have expressed their commitment to invest in America and expand their domestic manufacturing”. Stephen Innes at SPI Asset Management said the move was able to “reinforce the market’s hope that, even if the US-China heavyweights are still circling each other, there’s still room for incremental detente elsewhere”.While there is a hope that the president’s other sweeping measures on trade partners can be tempered before a 90-day stay of execution comes to an end in July, there appears to be little movement with China.The White House has imposed 10 percent tariffs on most US trading partners and a separate 145 percent levy on many products from China. Beijing has responded with 125 percent tariffs of its own.Reports last week said China was considering exempting some US goods from its retaliatory tariffs but officials have said there are no active negotiations between the economic superpowers.On Monday, a Chinese official denied Trump’s claims he had spoken recently with President Xi Jinping.The chance of a deal between the world’s two largest economies for now seems remote, with US Treasury Secretary Scott Bessent telling CNBC that negotiations were ongoing but the ball was in China’s court.”As I’ve repeatedly said, I believe it’s up to China to de-escalate, because they sell five times more to us than we sell to them. So these 125 percent tariffs are unsustainable,” he said in an interview aired on Monday.While uncertainty rules on trading floors, most Asian markets pushed higher on Tuesday, with Hong Kong, Sydney, Singapore, Taipei, Mumbai and Manila in positive territory.Seoul also rose as auto makers Hyundai and Kia were boosted by the auto tariff news.London was flat but Paris and Frankfurt edged up.Shanghai dipped with Wellington, while Tokyo was closed for a holiday.Data this week could give an idea about the impact of Trump’s measures on companies, with tech titans Amazon, Apple, Meta and Microsoft all reporting their earnings.Also on the agenda are key economic data, including jobs creation and the Federal Reserve’s preferred gauge of inflation amid warnings the tariffs could reignite prices.”While consumer and business survey data continue to plunge, the hard data has shown resilience, a trend likely to persist for a month or two until the effects of the Liberation tariffs become evident mid-year,” said Tony Sycamore, a market analyst at IG.”If President Trump’s tariffs are reduced, weaker hard data will be looked through, allowing the US economy and stock markets to muddle through the end of the year.”However, he added that if tariffs stayed elevated, stock markets could resume their losses and the chances of a recession rose.On currency markets, Canada’s dollar weakened against its US counterpart as speculation swirled over whether Prime Minister Mark Carney’s Liberal Party would win an outright majority in national elections.- Key figures at 0810 GMT -Hong Kong – Hang Seng Index: UP 0.2 percent at 22,008.11 (close)Shanghai – Composite: DOWN 0.1 percent at 3,286.65 (close)London – FTSE 100: FLAT at 8,416.74Tokyo – Nikkei 225: Closed for a holidayEuro/dollar: DOWN at $1.1406 from $1.1424 on MondayPound/dollar: DOWN at $1.3423 from $1.3441 Dollar/yen: UP at 142.35 yen from 142.04 yenEuro/pound: DOWN at 84.98 pence from 84.99 penceWest Texas Intermediate: DOWN 1.4 percent at $61.21 per barrelBrent North Sea Crude: DOWN 1.3 percent at $63.93 per barrelNew York – Dow: UP 0.3 percent at 40,227.59 (close)

On a tree-lined beach in Australia’s rugged island state of Tasmania, locals discovered popcorn-sized bits of dead salmon washed up along the sand.When the stinky remains landed in Verona Sands, population 131, they stirred up a festering environment-versus-industry row shortly before Saturday’s general elections.The fish remnants found in February were traced to a mass die-off from vast, circular salmon farming pens set up in the waters of the surrounding Tasman Sea estuary.The Tasmanian fish farming industry produces 75,000 tonnes of Atlantic salmon a year — 90 percent of Australia’s total output.But in the warm, summer temperatures, a bacterium had taken hold in some of the salmon pens.”What I saw was little chunks, the size of small plums, and they were scattered the entire length of the beach,” said Jess Coughlin, a campaigner with community group Neighbours of Fish Farming.When she sought advice to identify the mystery morsels, a diver who had worked in fish farms told her the industry referred to them as popcorn.”It’s a common occurrence when the fish are left dead in the pens for a number of days and they start to rot and break down,” Coughlin told AFP.- Rotting salmon -At first, the dead salmon sink.”The flesh and fat pull away from the body and, because of the pressure of the water and the wave action, as it makes its way up to the surface it clumps into these balls.”Dead salmon falling apart within pens where fish are still being grown for human consumption is “incredibly disturbing”, she said.Tasmania’s environmental regulator described the die-off in salmon pens in the area — the D’Entrecasteaux Channel — as an “unprecedented salmon mortality event”.The state’s chief veterinary officer, Kevin de Witte, reported that in the warm, summer waters, the fish had been infected with an endemic bacterium, Piscirickettsia salmonis.”P. salmonis fish bacterium does not grow in humans and do not present a human or animal health, or food safety risk,” he assured people.Industry body Salmon Tasmania said the microbe had devastated some farms in the area, and operators worked around the clock to clean up the mess and keep fish healthy.- ‘Catastrophe’ -“While industry always does its utmost to raise healthy fish, just like all animals and primary producers, salmon and our farms are not immune to the vagaries of our natural environment,” it said.Some estimates put the number of dead salmon in the millions, said the Bob Brown Foundation, named after its co-founder, an environmentalist and former lawmaker.”This catastrophe is not just a ‘natural vagary’,” the foundation said.”This is the direct result of excessive nitrogen pollution, overstocking of pens, corrupt governance and a consequent failure to regulate, all directly attributable to the foreign-owned salmon corporations’ endless greed.”The salmon industry is notably blamed for threatening the existence of the endangered Maugean skate, a species of ray that grows to about the length of an adult person’s arm.An estimated 4,100 Maugean skates remain in the world, and fewer than 120 of them are old enough to reproduce, according to the Australian Marine Conservation Society.They are found only in western Tasmania’s Macquarie Harbour, which is also home to about 10 percent of the state’s salmon industry.Official advice to the federal government in November 2023 said it may have to reconsider the industry’s legality — and eventually even suspend its operations — due to scientific findings of an “increased extinction risk” to the skates.- ‘Anger and distress’ -Less than six weeks before the elections, Prime Minister Anthony Albanese’s government intervened to block that possibility, saying it had to protect jobs.Parliament adopted a law curbing the environment minister’s power to review years-old rulings — effectively shielding the Macquarie Bay salmon farmers.But the bay only represents 10 percent of Tasmania’s salmon industry and it is a gateway to rural tourism, the environmentalist Bob Brown told AFP in the weeks leading up to the election.”There’s a mood of anger and distress that I haven’t seen for decades and it’s getting stronger and there’s a lot of young people involved and it’s very heartening,” Brown said.Some candidates in Tasmania are campaigning to bring a halt to salmon farming operations based in the open sea.”I think there will be a bigger vote away from the big parties,” Brown predicted. “I think the vote against them will be a record.”