Afp Business Asia

Markets edged up Tuesday after a largely positive day on Wall Street with investors eyeing a busy week of data and earnings releases that could provide clues about the effects of Donald Trump’s trade policies.A month that started with the explosion of the US president’s “Liberation Day” tariffs on April 2 was on course for a somewhat calmer close as governments line up to cut deals to avert the full force of the measures.But while there is a hope that the sweeping measures can be tempered before a 90-day stay of execution comes to an end in July, there appears to be little movement with the main focus of the levies — China.Reports last week said China was considering exempting some US goods from its retaliatory tariffs but Beijing has said there are no active negotiations between the economic superpowers.On Monday an official denied Trump’s claims to have spoken with President Xi Jinping.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.The chance of a deal between the two for now seems remote, with US Treasury Secretary Scott Bessent telling CNBC that negotiations were ongoing but the ball was in China’s court.”We’ll see where this goes,” he said in an interview aired Monday.”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.”While uncertainty rules on trading floors, Asian markets pushed higher on Tuesday, with Hong Kong, Shanghai, Sydney, Seoul, Singapore, Taipei, Manila in positive territory.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 first-quarter earnings this week,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.- Key figures at 0200 GMT -Hong Kong – Hang Seng Index: UP 0.4 percent at 22,050.01Shanghai – Composite: UP 0.1 percent at 3,291.03Tokyo – Nikkei 225: Closed for a holidayEuro/dollar: DOWN at $1.1392 from $1.1424 on MondayPound/dollar: DOWN at $1.3421 from $1.3441 Dollar/yen: UP at 142.41 yen from 142.04 yenEuro/pound: DOWN at 84.89 pence from 84.99 penceWest Texas Intermediate: DOWN 0.2 percent at $61.91 per barrelBrent North Sea Crude: DOWN 0.2 percent at $64.66 per barrelNew York – Dow: UP 0.3 percent at 40,227.59 (close)London – FTSE 100: FLAT at 8,417.34 (close)

Global stocks were steady on Monday as investors welcomed the absence of further trade war escalation over the weekend and as countries seek to temper US President Donald Trump’s tariffs.Major bourses avoided big swings on a comparatively news-light day ahead of heavily anticipated economic releases and earnings later in the week.Both the Dow and S&P 500 notched modest gains while the tech-rich Nasdaq finished the day slightly lower.”A weekend light on drama was just what the doctor ordered for financial markets,” said AJ Bell investment director Russ Mould.Analysts said that market sentiment has calmed since Trump dialed down pressure on Federal Reserve boss Jerome Powell and hinted at progress in trade talks with economic partners.”While last week’s market action and today’s early session suggest calmer waters, any sense of security is precarious,” said City Index and FOREX.com analyst Fawad Razaqzada.”Underneath the surface, key risks persist — trade tensions, recession worries, and monetary policy uncertainties are very much alive.”US giants Amazon, Apple, Meta and Microsoft all report their first-quarter earnings this week, with investors looking to assess the impact of tariffs on businesses. Eyes will also be on the release of several closely watched US economic indicators which “may either dampen or revive concerns about recession in the world’s largest economy,” Mould added.Crude prices fell as investors worried about the impact of the trade war on the US economy.Bjarne Schieldrop of SEB Research said oil demand was “at risk as US consumers soon will face hard tariff realities.”Analysts are concerned that the punitive tariff levels that the US and Chinese governments have imposed could lead to shortages of certain goods.US Treasury Secretary Scott Bessent said Monday he was not concerned “at present” about American stores potentially running out of items due to Trump’s tariffs.Traders are hoping governments can hammer out deals with Trump to soften the impact of his sweeping tariffs, with reports last week saying China was considering exempting some US goods from its hefty retaliatory measures.Beijing has said there are no active negotiations between the economic superpowers and on Monday an official denied Trump’s claims to have spoken with Xi by phone.In Beijing, senior economic planner Zhao Chenxin said China was on the “right side of history” in its grueling trade war with the United States.Japanese media reported that a second round of trade talks in Washington was set for Thursday.The discussions will be closely watched as a barometer for efforts by other countries seeking tariff relief.Bessent said earlier a trade “understanding” between South Korea and the United States could be reached by this week.- Key figures at 2030 GMT -New York – Dow: UP 0.3 percent at 40,227.59 (close)New York – S&P 500: UP 0.1 percent at 5,528.75 (close)New York – Nasdaq: DOWN 0.1 percent at 17,366.13 (close)London – FTSE 100: FLAT at 8,417.34 (close)Paris – CAC 40: UP 0.5 percent at 7,573.76 (close)Frankfurt – DAX: UP 0.1 percent at 22,271.67 (close)Tokyo – Nikkei 225: UP 0.4 percent at 35,839.99 (close)Hong Kong – Hang Seng Index: FLAT at 21,971.96 (close)Shanghai – Composite: DOWN 0.2 percent at 3,288.41 (close)Euro/dollar: UP at $1.1424 from $1.1365 on FridayPound/dollar: UP at $1.3441 from $1.3315 Dollar/yen: DOWN at 142.04 yen from 143.67 yenEuro/pound: DOWN at 84.99 pence from 85.35 penceWest Texas Intermediate: DOWN 1.5 percent at $62.05 per barrelBrent North Sea Crude: DOWN 1.5 percent at $65.86 per barrelburs-jmb/aha

Global stocks markets diverged on Monday as investors welcomed the absence of further trade war escalation over the weekend and as countries seek to temper US President Donald Trump’s tariffs.While that was enough to help most Asian and European equities markets rise, investors on Wall Street took some money off the table ahead of upcoming corporate earnings reports and key economic data.”A weekend light on drama was just what the doctor ordered for financial markets,” said AJ Bell investment director Russ Mould.Analysts said that market sentiment has calmed since Trump dialled down pressure on Federal Reserve boss Jerome Powell and hinted at progress in trade talks with economic partners.”While last week’s market action and today’s early session suggest calmer waters, any sense of security is precarious,” said City Index and FOREX.com analyst Fawad Razaqzada.”Underneath the surface, key risks persist — trade tensions, recession worries, and monetary policy uncertainties are very much alive.”Investors will have plenty of corporate earnings and economic data to command their attention.”This week will be the first for a while where data and earnings will compete with tariff headlines,” said Jim Reid, global head of macro research at Deutsche Bank. US giants Amazon, Apple, Meta and Microsoft all report their first quarter earnings this week, with investors looking to assess the impact of tariffs on businesses. Eyes will also be on the release of several closely-watched US economic indicators which “may either dampen or revive concerns about recession in the world’s largest economy,” Mould added.Crude prices fell as investors worried about the impact of the trade war on the US economy.Bjarne Schieldrop said oil demand is “at risk as US consumers soon will face hard tariff realities”.Analysts are concerned that the punitive tariff levels that the US and Chinese government have imposed could lead to shortages of certain goods.US Treasury Secretary Scott Bessent said Monday he was not concerned “at present” about American stores potentially running out of items due to Trump’s tariffs.Traders are hoping governments can hammer out deals with Trump to soften the impact of his sweeping tariffs, with reports last week saying China was considering exempting some US goods from its hefty retaliatory measures.Beijing has said there are no active negotiations between the economic superpowers and on Monday an official denied Trump’s claims to have spoken with Xi by phone.In Beijing, senior economic planner Zhao Chenxin said China was on the “right side of history” in its gruelling trade war with the United States.Japanese media reported that a second round of trade talks in Washington was set for Thursday.The discussions will be closely watched as a barometer for efforts by other countries seeking tariff relief.Bessent said earlier a trade “understanding” between South Korea and the United States could be reached by this week.- Key figures at 1530 GMT -New York – Dow: DOWN 0.1 percent at 40,073.25 pointsNew York – S&P 500: DOWN 0.7 percent at 5,489.46New York – Nasdaq: DOWN 1.2 percent at 17,173.28London – FTSE 100: FLAT at 8,417.34 (close)Paris – CAC 40: UP 0.5 percent at 7,573.76 (close)Frankfurt – DAX: UP 0.1 percent at 22,271.67 (close)Tokyo – Nikkei 225: UP 0.4 percent at 35,839.99 (close)Hong Kong – Hang Seng Index: FLAT at 21,971.96 (close)Shanghai – Composite: DOWN 0.2 percent at 3,288.41 (close)Euro/dollar: UP at $1.1382 from $1.1359 on FridayPound/dollar: UP at $1.3390 from $1.3314 Dollar/yen: DOWN at 142.70 yen from 143.69 yenEuro/pound: DOWN at 85.00 pence from 85.31 penceWest Texas Intermediate: DOWN 1.7 percent at $61.96 per barrelBrent North Sea Crude: DOWN 1.7 percent at $64.66 per barrelburs-rl/cw

Stocks mostly rose on Monday as investors welcomed the absence of further trade war escalation over the weekend and as countries seek to temper US President Donald Trump’s tariffs.Investors were also keeping tabs on China after President Xi Jinping and other top leaders last week discussed plans to boost consumption in the world’s number two economy.Markets started Monday on a tepid note after a much-needed positive run-up last week, with eyes on the upcoming earnings season and key economic data.”A weekend light on drama was just what the doctor ordered for financial markets,” said AJ Bell investment director Russ Mould.Analysts said that market sentiment has calmed since Trump dialled down pressure on Federal Reserve boss Jerome Powell and hinted at progress in trade talks with economic partners.”This week will be the first for a while where data and earnings will compete with tariff headlines,” said Jim Reid, global head of macro research at Deutsche Bank. Investors will be poring over the outlook statements in a slew of corporate earnings, including from US giants Amazon, Apple, Meta and Microsoft, to assess the impact of tariffs on businesses. Eyes will also be on the release of several closely-watched US economic indicators which “may either dampen or revive concerns about recession in the world’s largest economy,” Mould added.Asian markets enjoyed a largely healthy start after a strong end to last week on Wall Street. Tokyo rose along with London, Paris and Frankfurt.But Shanghai edged down while Hong Kong was flat.In company news, shares in wealth management firm Banca Generali soared six percent in Milan after Italian bank Mediobanca announced a takeover bid. The more positive mood weighed on gold, which hit a record high around $3,500 last week as investors flocked to safe havens.Traders are hoping governments can hammer out deals with Trump to soften the impact of his sweeping tariffs, with reports last week saying China was considering exempting some US goods from its hefty retaliatory measures.Beijing has said there are no active negotiations between the economic superpowers and on Monday an official denied Trump’s claims to have spoken with Xi by phone.Japanese media reported that a second round of trade talks in Washington was set for Thursday.The discussions will be closely watched as a barometer for efforts by other countries seeking tariff relief.US Treasury Secretary Scott Bessent said a trade “understanding” between South Korea and the United States could be reached by this week.In Beijing, senior economic planner Zhao Chenxin said China was on the “right side of history” in its gruelling trade war with the United States- Key figures at 1100 GMT -London – FTSE 100: UP 0.1 percent at 8,424.54 pointsParis – CAC 40: UP 0.6 percent at 7,584.04Frankfurt – DAX: UP 0.5 percent at 22,351.31Tokyo – Nikkei 225: UP 0.4 percent at 35,839.99 (close)Hong Kong – Hang Seng Index: FLAT at 21,971.96 (close)Shanghai – Composite: DOWN 0.2 percent at 3,288.41 (close)New York – Dow: UP 0.1 percent at 40,113.50 (close)Euro/dollar: DOWN at $1.1348 from $1.1359 on FridayPound/dollar: UP at $1.3337 from $1.3314 Dollar/yen: DOWN at 143.47 yen from 143.69 yenEuro/pound: DOWN at 85.08 pence from 85.31 penceWest Texas Intermediate: DOWN 0.6 percent at $62.63 per barrelBrent North Sea Crude: DOWN 0.6 percent at $65.42 per barrel

Stocks mostly rose on Monday as investors assess how the land lies on the trade war front with countries seeking to temper Donald Trump’s eye-watering tariffs.Investors were also keeping tabs on China after President Xi Jinping and other top leaders last week discussed plans to boost consumption in the world’s number two economy.Markets started Monday on a tepid note after a much-needed positive run-up last week, with eyes on the upcoming earnings season, key data and central bank decisions.”We head into month-end and a risk event-heavy trading week, with a ‘cautiously optimistic’ stance adopted by the collective,” said Chris Weston at Pepperstone.”Whether the move in risk can kick (on) will be determined by the incoming economic data and US company earnings, but the bar to beat expectations remains low and the wall of worry is there for climbing.”He added that while caution remained, there was optimism that the White House was sensitive to extreme market reactions, such as the bond market’s plunge in reaction to Trump’s April 2 “Liberation Day” tariffs.Investors “feel a renewed sense of control — where the collective has seen the response from the US administration to moves in the US 10-year Treasury, equity and implied cross-asset volatility — to know that Trump et al do have a threshold and a trigger point”, Weston said.Asia enjoyed a largely healthy start after a strong end to last week on Wall Street. Tokyo, Hong Kong, Sydney, Seoul, Taipei, Mumbai, Bangkok, Jakarta and Wellington rose with London, Paris and Frankfurt.But Shanghai, Singapore and Manila edged down while Hong Kong was flat.The more positive mood weighed on gold, which hit a record high around $3,500 last week as investors flocked to safe havens.Traders are hoping governments can hammer out deals with Trump to soften the impact of his sweeping tariffs, with reports last week saying China was considering exempting some US goods from its hefty retaliatory measures.Beijing has said there are no active negotiations between the economic superpowers and on Monday an official denied Trump’s claims to have spoken with Xi by phone.Japanese media reported that a second round of trade talks in Washington was set for Thursday.The discussions will be closely watched as a barometer for efforts by other countries seeking tariff relief.And US Treasury Secretary Scott Bessent said a trade “understanding” between South Korea and the United States could be reached by this week.Separately, officials in Beijing were due to hold a news conference on Monday on employment, economic growth and development, days after China’s top decision-making body gathered to discuss how to kickstart growth.Leaders are looking at a range of domestic issues with an eye to “enhance the role of consumption in stimulating economic growth”, according to Xinhua on Friday.They also said they would seek to “work with the international community to actively uphold multilateralism and oppose unilateral bullying practices”.- Key figures at 0810 GMT -Tokyo – Nikkei 225: UP 0.4 percent at 35,839.99 (close)Hong Kong – Hang Seng Index: FLAT at 21,971.96 (close)Shanghai – Composite: DOWN 0.2 percent at 3,288.41 (close)London – FTSE 100: UP 0.3 percent at 8,439.98Euro/dollar: DOWN at $1.1349 from $1.1359 on FridayPound/dollar: DOWN at $1.3305 from $1.3314 Dollar/yen: UP at 143.70 yen from 143.69 yenEuro/pound: DOWN at 85.28 pence from 85.31 penceWest Texas Intermediate: UP 0.2 percent at $63.16 per barrelBrent North Sea Crude: UP 0.2 percent at $65.93 per barrelNew York – Dow: UP 0.1 percent at 40,113.50 (close)

A top Chinese economic official on Monday said Beijing was on the “right side of history” in its gruelling trade war with the United States.Since returning to the White House in January, US President Donald Trump 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 on US goods.Speaking in Beijing at a news conference at which officials vowed greater steps to shield China’s flagging economy from the impact of the standoff, senior economic planner Zhao Chenxin said Beijing was “on the right side of history”.”We firmly believe that if you are against the world and the truth, you will only isolate yourselves,” Zhao said.”Only by travelling with the world and with morality can we win the future,” he added.The United States, he said, “play cards out of thin air, bully and go back on their word”, condemning Washington’s “unilateralism and bullying”.US Treasury Secretary Scott Bessent on Sunday defended Trump’s tumultuous tariff policy — which has sent shivers through markets — as a way of creating “strategic uncertainty” that gives Washington the upper hand.When asked about Bessent’s comments, Beijing on Monday said that the US should approach dialogue with China in a “fair, respectful and reciprocal” manner.”If the US really wants to solve the problem through dialogue and consultation, it should stop its threats and extortion,” foreign ministry spokesman Guo Jiakun said at a regular news conference. Dozens of countries face a 90-day deadline expiring in July to strike an agreement with Washington and avoid higher, country-specific rates.Beijing, however, has vowed to fight a trade war “to the end” and denied US claims it is in talks with Washington.But it has acknowledged global economic vicissitudes have strained its economy, long dependent on exports.”External pressures are increasing,” said Yu Jiadong of China’s labour ministry on Monday.”The US imposition of successive high-tariff measures has created production and operation challenges for some export-oriented companies and impacted some workers’ jobs,” he said.

Asian stocks were mixed Monday as investors assess how the land lies on the trade war front with countries seeking to temper Donald Trump’s eye-watering tariffs.Investors were also keeping tabs on China after President Xi Jinping and other top leaders last week discussed plans to boost consumption in the world’s number two economy.After a much-needed positive run-up last week markets started Monday on a tepid note, with eyes on the upcoming earnings season, key data and central bank decisions.”We head into month-end and a risk event-heavy trading week, with a ‘cautiously optimistic’ stance adopted by the collective,” said Chris Weston at Pepperstone.”Whether the move in risk can kick (on) will be determined by the incoming economic data and US company earnings, but the bar to beat expectations remains low and the wall of worry is there for climbing.”He added that while caution remained, there was optimism that the White House was sensitive to extreme market reactions, such as the bond market’s plunge in reaction to Trump’s April 2 “Liberation Day” tariffs.Investors “feel a renewed sense of control — where the collective has seen the response from the US administration to moves in the US 10-year Treasury, equity and implied cross-asset volatility — to know that Trump et al do have a threshold and a trigger point”.After a strong end to last week on Wall Street, Asia fluctuated. Tokyo, Sydney, Seoul, Taipei, Manila, Jakarta and Wellington rose but Hong Kong, Shanghai and Singapore edged down.The more positive mood weighed on gold, which hit a record high around $3,500 last week as investors flocked to safe havens.Traders are hoping governments can hammer out deals with Trump to soften the impact of his sweeping tariffs, with reports last week saying China was considering exempting some US goods from its hefty retaliatory measures.However, Beijing has said there are no active negotiations between the economic superpowers, while Trump claimed to have spoken with Xi.Meanwhile, Japanese media reported that a second round of trade talks in Washington was set for May 1.The discussions will be closely watched as a barometer for efforts by other countries seeking tariff relief.And US Treasury Secretary Scott Bessent said a trade “understanding” between South Korea and the United States could be reached by this week.Separately, officials in Beijing were due to hold a news conference Monday on employment, economic growth and development, days after China’s top decision-making body gathered to discuss how to kickstart growth.Leaders are looking at a range of domestic issues with an eye to “enhance the role of consumption in stimulating economic growth”, according to Xinhua on Friday.They also said they would seek to “work with the international community to actively uphold multilateralism and oppose unilateral bullying practices”.- Key figures at 0230 GMT -Tokyo – Nikkei 225: UP 0.5 percent at 35,887.89 (break)Hong Kong – Hang Seng Index: DOWN 0.2 percent at 21,945.60Shanghai – Composite: DOWN 0.1 percent at 3,291.87Euro/dollar: DOWN at $1.1356 from $1.1359 on FridayPound/dollar: DOWN at $1.3291 from $1.3314 Dollar/yen: DOWN at 143.62 yen from 143.69 yenEuro/pound: UP at 85.44 pence from 85.31 penceWest Texas Intermediate: DOWN 0.1 percent at $62.97 per barrelBrent North Sea Crude: DOWN 0.1 percent at $65.76 per barrelNew York – Dow: UP 0.1 percent at 40,113.50 (close)London – FTSE 100: UP 0.1 percent at 8,415.25 (close)

Intelligent driving features are the new battleground in China’s merciless car market, with competition spurring brands to world-leading advances — but a recent fatal crash has seen the government intervene to put the brakes on runaway enthusiasm.Advanced driver-assistance systems (ADAS) help with tasks ranging from cruise control to parking and collision avoidance, with the ultimate aim being a fully self-driving car.Automakers are pouring investment into their development, especially in the world’s biggest car market China, which skews young and tech-savvy.”Ten years ago, only 15 percent of customers said they would change car because of an intelligent cockpit — today it’s 54 percent,” Giovanni Lanfranchi of EV firm Zeekr said.Almost 60 percent of cars sold in China last year had level-two ADAS features — where the driver is still in control but there is continuous assistance — or above, according to an AlixPartners report released last week.The features “are emerging as a key competitive tool”, said the consultancy’s Yvette Zhang.Some firms use their own proprietary technology, like start-up Xpeng and consumer electronics-turned-car company Xiaomi, while others are cooperating with tech giants such as Huawei.Such software is being developed in Europe and North America too.But in a survey of hundreds of global auto executives surveyed by AlixPartners, two-thirds said they believed China led the world in the field. “The collection and processing of data, and the availability of software and machine-learning talent” is difficult to replicate, the report said.The technology is not immune from the price wars that are a key feature of the Chinese market.In February, domestic EV giant BYD announced it would release its “God’s Eye” driving system on nearly all its cars, including on some models priced below $10,000.- Over-promising? -Then came a fatal accident in March involving a Xiaomi SU7 that had been in assisted driving mode just before it crashed.The accident, in which three college students died, raised concerns over safety and the advertising of cars as being capable of “autonomous driving”.The issue is an industry-wide one — Tesla’s US-released “Full Self-Driving” capability, for example, is still meant to be used under driver supervision.”The price war has just been so brutal, companies are desperate to find any way to set themselves apart,” said Tom Nunlist, associate director for tech and data policy at Trivium China.”So the question is have they been over-promising on features and releasing things as quickly as possible, for the purposes of fighting this commercial battle.”China’s Ministry of Industry and Information Technology seems to share those concerns.After the crash, it held a meeting with leading automakers and other key players in which it made clear that safety rules would be more tightly enforced.It warned automakers to test systems rigorously, “define system functional boundaries… and refrain from exaggerated or false advertising”. Reports said it will also crack down on the practice of improving ADAS via remote software updates.- ‘Sharp U-turn’ -As the massive industry show Auto Shanghai kicked off last week, the shift in gear was obvious.”In a sharp U-turn from just two months ago, carmakers have taken a low profile in terms of autonomous driving functions, but are emphasising safety instead,” said UBS’ Paul Gong in a note.”Safety is the ultimate premium of new energy vehicles,” a sign at BYD’s booth read.At the bustling Xiaomi booth, information boards touted the SU7’s colour choices, chassis and hardware — but AFP saw no mention of ADAS at all.”The autonomous driving function marketing race seems to have halted, at least temporarily,” wrote Gong.Zhang Yu, managing director of Shanghai-based consultancy Automotive Foresight, told AFP that he thought the crash was “only a setback in marketing terms, which is helpful for a healthy development” of the area.”This accident was not related to tech or the system itself, it more concerns the ignorance of ADAS and boundary of autonomous driving,” he added.The technology itself continues to progress.”That’s why this is becoming a pressing issue because car companies are going to be wanting to release these features,” Trivium’s Nunlist said.However, a truly autonomous car — level five on the scale — is “certainly not imminent”, he added, predicting “very hard last-mile problems”.

Stockpiling is the reflex response by firms to the imposition of tariffs, but with the rapidly-changing position of the Trump administration, companies are finding that it isn’t so straightforward this time around.Whether it’s the luxury, electronics or pharmaceutical sectors, US President Donald Trump’s unpredictability complicates the calculations of firms.Some companies didn’t wait for Trump’s April 2 announcement of massive “reciprocal” trade tariffs: they had already begun shipping more of their goods to the United States.In the end, Trump backed down quickly on the “reciprocal” tariffs, pausing them for 90 days except for China.That still left the global 10 percent tariff in place, as well as the 25 percent tariffs on European steel, aluminium and cars.French cosmetics firm Clarins didn’t hesitate and stepped up shipments to the United States at the beginning of the year.”We’ve built up three months of stocks, which represents $2 million in goods,” said Lionel Uzan, the head of Clarins’s US operations.With all of its products made in France, Clarins had few other options to mitigate the tariffs.- Discreet stockpiling -Even if they don’t all acknowledge it so openly, firms in many different sectors are stockpiling their products in the United States.In March, exports of Swiss watches to the United States jumped nearly 14 percent compared to the same month last year.More striking is Ireland, which plays host to a number of international pharmaceutical firms.Its exports to the United States jumped 210 percent in February to nearly 13 billion euros ($14.8 billion), with 90 percent of those being pharmaceutical products and chemical ingredients.Fermob, a French manufacturer of metal garden furniture that sells around 10 percent of its products in the United States, said it began planning for US tariffs once the result of the presidential election became known in November.It stepped up production in January and February.”We’ve sent around 30 percent of our extra stock to the United States,” said the company’s chief executive, Baptiste Reybier.That extra production has benefitted transportation firms.Lufthansa Cargo said it has seen in recent weeks “an increase in demand for shipments to the United States”.The trade war “has incited companies to accelerate certain stages in their supply chains”, it told AFP.”A similar trend was seen for the delivery of cars from the EU to the United States,” it said.The phenomenon also concerns US-made goods.The Japanese newspaper Nikkei reported recently that Chinese tech firms were snapping up billions of dollars of artificial intelligence chips made by US firm Nvidia in anticipation of Washington imposing export restrictions.- ‘Short-term approach’ -Stockpiling is not a solution, however, said analysts.Matt Jochim, a partner at consulting firm McKinsey who helps companies with supply chain issues, called stockpiling “a very short-term opportunistic” move.He said the practice has limits as tariffs are constantly changing and it isn’t always practicable.”In a lot of the electronics space, it’s also hard to do, because the technology changes so quickly, you don’t want to get stuck with inventory of chipsets or devices that are the prior version,” he said. Fermob said it was taking a measured approach to stockpiling.”Otherwise you’re replacing one risk with another,” the manufacturer’s Reybier said.”You have to finance stocks and there is also the risk of not having sent the right product.”Having a local subsidiary with warehouses also helped, Reybier added.”It’s too early to say whether we should have sent more or not.”

At a mountainside cafe in southwestern China, Liao Shihao brews handfuls of locally grown beans into steaming cups of coffee, a modern twist on the region’s traditional drink.For centuries, Pu’er in Yunnan province has given its name to a type of richly fermented tea — sometimes styled “pu-erh” — famous across East Asia and beyond.But as younger Chinese cultivate a taste for punchy espressos, frothy lattes and flat whites, growers are increasingly branching out into tea’s historic rival.”People are coming to try our hand-drip coffee… and more fully experience the flavours it brings,” Liao, 25, told AFP.”In the past, they mostly went for commercialised coffee, and wouldn’t dabble in the artisanal varieties,” he said.Liao’s family has run the Xiaowazi, or Little Hollow, coffee plantation for three generations.Nestled in a shady valley, spindly coffee trees line its steep hillsides, their cherry-like fruit drying on wooden pallets outside.When AFP visited this month, clusters of tourists sipped boutique brews in the airy cafe overlooking its verdant slopes.”It’s very good,” said Cai Shuwen, 21, as he perched on a bar stool lifting sample after sample to his lips.”Even though some beans are more astringent than I imagined, others have exceeded my expectations.”- Brewing success -Every year, Pu’er’s plantations sell tens of thousands of tons of coffee to major Chinese cities, according to government data.In metropolises such as Beijing and Shanghai, a thriving cafe scene has emerged in recent years, driven by people aged between 20 and 40.To Liao, a trained roaster and barista, coffee from his home region possesses “a creamy flavour with a silky, viscous mouthfeel”.Modern commercial plantations only sprang up in Pu’er in the 1980s, and the area is still better known for its centuries-old tea trade.Liao’s grandfather, Liao Xiugui, said “nobody knew anything about coffee” when he arrived in Pu’er a few decades ago.At the time, the older man was one of very few people in China who had studied coffee cultivation.But the region’s relatively high altitude and temperate climate were well-suited to the unfamiliar crop, the now 83-year-old told AFP.”The quality of the coffee we plant here is strong but not too bitter, floral but not too heady, and slightly fruity,” he added.Free from artificial pesticides and interspersed with other species for biodiversity, Little Hollow yields about 500 tons of raw coffee fruit per year.Liao Xiugui himself drinks two or three cups a day, and credits the caffeinated beverage for keeping him spry in his advanced years.”Drinking coffee can make you younger and healthier… and prevent ageing,” he smiled.”Also, everyone is tired at work these days… and they want to give their brains a boost.”- Richer pickings -China’s coffee output has risen dramatically in recent years, though it still lags far behind traditional powerhouses such as Brazil, Vietnam and Colombia.Yunnan, near three borders with Southeast Asian nations, accounts for virtually all of China’s coffee production, much of it concentrated in Pu’er.On a visit to Yunnan last month, President Xi Jinping said the province’s coffee “represents China”, according to state media.Keen to further expand the sector, officials have rolled out policies to improve production, attract investment and boost exports, according to government statements.They have also merged coffee production with tourism, dovetailing with a central government push to increase domestic consumption.Longtime farmer Yu Dun, 51, said she had opened new income streams with plantation tours, homestays and a restaurant fusing coffee with the cuisine of her native Dai ethnicity.Her prospects were bright, she said, adding that she also earned “10 times” more revenue from her beans since learning to process and roast them herself.”We used to say only rich people could drink coffee, but that’s all changed now,” she said.