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Asian and European stocks rise in wake of Wall Street rally

Asian and European stocks climbed on Friday, buoyed by a rally on Wall Street and the prospect of trade deals progressing between the United States and some of its economic partners.US stocks rallied for a third straight session on Thursday, shrugging off signs that US trade deals with China and the European Union aren’t imminent despite promising signs elsewhere.Beijing said on Thursday any claims of ongoing trade talks with Washington were “groundless” after US President Donald Trump played up the prospects of a deal to lower the 145 percent tariffs he imposed on most Chinese exports.France’s economy minister Eric Lombard said a trade deal between the United States and the European Union was also a way off.However, global markets appear to have brushed aside the lack of progress.”There are mixed signals about whether there have been some talks about trade between the US and China,” said Lloyd Chan, a senior currency analyst at MUFG.”Nonetheless, the trade war and US policy-related uncertainty have persisted. Asian economies still face the risk of higher reciprocal tariffs.”China’s top leaders urged more support for the economy and opposed “unilateral bullying” in global trade, according to a readout of a meeting published by state media on Friday.Tokyo jumped 1.9 percent and Hong Kong was up 0.3 percent, while Shanghai was flat.The Nikkei rise came despite struggling Japanese auto giant Nissan issuing a stark profit warning on Thursday, forecasting a huge loss of up to $5.3 billion in the 2024-25 financial year.The markets see that the company “is moving ahead toward turnaround”, said Bloomberg Intelligence analyst Tatsuo Yoshida, as Nissan shares climbed more than 1.6 percent on Friday. “Booking significant impairment losses and restructuring charges is a necessary step toward Nissan Motor’s turnaround.”Japanese media reported on Thursday that a second round of trade talks in Washington was set for May 1, which will be closely watched as a barometer for efforts by other countries seeking tariff relief.Seoul jumped one percent after US Treasury Secretary Scott Bessent said a trade “understanding” between South Korea and the United States could be reached by next week.Taipei, Wellington, Singapore, Manila, Bangkok and Jakarta also climbed.   Markets were also responding to strong earnings from Google parent Alphabet, which reported on Thursday a profit of $34.5 billion in the recently ended quarter.Overall revenue at Alphabet grew 12 percent to $90.2 billion compared with the same period a year earlier, while revenue for its cloud unit grew 28 percent to $12.3 billion, according to the tech giant.London, Paris and Frankfurt were all up at the open.MUFG’s Chan also pointed to the Federal Reserve possibly cutting interest rates sooner than expected.Fed Governor Christopher Waller said during an interview with Bloomberg Television that he would support interest rate cuts if harsh tariffs hurt the jobs market.”In terms of the latest Fed speak, Fed’s Waller has said he would support rate cuts should there be a significant deterioration in the labour market,” Chan said.- Key figures at 0800 GMT -Tokyo – Nikkei 225: UP 1.9 percent at 35,705.74 (close)Hong Kong – Hang Seng Index: UP 0.3 percent 21,980.74 (close)Shanghai – Composite: DOWN 0.1 percent at 3,295.06 (close)London – FTSE 100: UP 0.1 percent at 8,418.12  Euro/dollar: DOWN at $1.1361 from $1.1392 on ThursdayPound/dollar: DOWN at $1.3302 from $1.3339 Dollar/yen: UP at 143.36 from 142.62 yenEuro/pound: UP at 85.40 from 85.35 penceWest Texas Intermediate: UP 0.29 percent at $62.97 per barrelBrent North Sea Crude: UP 0.17 percent at $66.66 per barrelNew York – Dow: UP 1.2 percent at 40,093.40 (close)burs-tc/pbt

Asia stocks rise in wake of Wall Street rally

Asian stocks climbed on Friday, buoyed by a rally on Wall Street, strong earnings from Google parent company Alphabet, and the prospect of diffusing tensions in US President Donald Trump’s trade war.US stocks rallied for a third straight session Thursday, shrugging off signs US trade deals with China and the European Union aren’t imminent.Beijing had said on Thursday any claims of ongoing trade talks with Washington were “groundless” after Trump played up the prospects of a deal to lower hefty tariffs he imposed on China.France’s economy minister Eric Lombard said a trade deal between the United States and the European Union was also a way off.But global markets appear to have brushed aside the lack of progress.”There are mixed signals about whether there have been some talks about trade between US and China,” said Lloyd Chan, a senior currency analyst at MUFG.”Nonetheless, the trade war and US policy-related uncertainty have persisted. Asian economies still face the risk of higher reciprocal tariffs.”Tokyo climbed one percent, while Hong Kong, Shanghai were also up.The Nikkei rise came despite struggling Japanese auto giant Nissan issuing a stark profit warning on Thursday, forecasting a huge loss of up to $5.3 billion in the 2024-25 financial year.The markets see that the company “is moving ahead toward turnaround”, said Bloomberg Intelligence analyst Tatsuo Yoshida, as Nissan shares climbed more than three percent on Friday. “Booking significant impairment losses and restructuring charges is a necessary step toward Nissan Motor’s turnaround.”Seoul jumped 0.5 percent after US Treasury Secretary Scott Bessent said a trade “understanding” between South Korea and the United States could be reached by next weekTaipei, Sydney, Singapore, Manila and Wellington also climbed.Markets were responding to strong earnings from Google parent Alphabet, which reported on Thursday a profit of $34.5 billion in the recently ended quarter.Overall revenue at Alphabet grew 12 percent to $90.2 billion compared to the same period a year earlier, while revenue for the cloud unit grew 28 percent to $12.3 billion, according to the tech giant.MUFG’s Chan also pointed to the Federal Reserve possibly cutting interest rates sooner than expected.Fed Governor Christopher Waller said during an interview with Bloomberg Television that he would support interest rate cuts if harsh tariffs hurt the jobs market.”In terms of the latest Fed speak, Fed’s Waller has said he would support rate cuts should there be a significant deterioration in the labour market,” Chan said.- Key figures at 0300 GMT -Tokyo – Nikkei 225: UP 1.4 percent at 35,527.39 (break)Hong Kong – Hang Seng Index: UP 1.29 percent 22,191.59Shanghai – Composite: UP 0.1 percent at 33,00.061 Euro/dollar: DOWN at $1.1349 from $1.1392 on ThursdayPound/dollar: DOWN at $1.3304 from $1.3339 Dollar/yen: UP at 142.97 from 142.62 yenEuro/pound: DOWN at 85.30 from 85.35 penceWest Texas Intermediate: UP 0.24 percent at $62.94 per barrelBrent North Sea Crude: UP 0.2 percent at $66.68 per barrelNew York – Dow: UP 1.2 percent at 40,093.40 (close)London – FTSE 100: UP 0.5 percent at 8,407.44 (close)burs-tc/fox 

Stocks rally rolls on in US, mixed elsewhere

Wall Street stocks pushed higher for a third day on Thursday but the rally fizzled elsewhere as China poured cold water on US President Donald Trump’s comments talking up prospects of a deal to end their trade war.US stocks tanked on Monday after comments by Trump sparked fears he would try to remove Federal Reserve chief Jerome Powell.But global markets rebounded on Tuesday after Trump indicated he had no intention to oust Powell, also signaling that tariffs on China could be substantially lowered and that the United States would have a “fair deal” on trade with Beijing.But China on Thursday denied that any “economic and trade negotiations” are taking place with Washington.Treasury Secretary Scott Bessent also tempered optimism, saying the two countries were “not yet” talking when it comes to lowering tariffs.Those comments led to a mostly lower session in Asia and early losses in Europe, which nevertheless ended the day with small gains.However, Wall Street pushed higher after a mixed open, finishing solidly higher for a third straight day. Thursday’s gains are part of a “relief rally” that is persisting, said Adam Sarhan of 50 Park Investments.”The last few times the market has gone down a lot, Trump has changed his stance and he’s done so quickly,” said Sarhan. “When the markets move, Trump listens.”The dollar weakened as White House uncertainty boosted demand for the Swiss franc, the yen and gold, seen as safe-haven assets.Meanwhile investors were also looking to a series of company results for signs of how tariffs may weigh on the outlook for the year ahead.”Comments about tariffs from business leaders are omnipresent and investors want to know how companies plan to deal with potential cost pressures,” said Russ Mould, investment director at AJ Bell.Shares in consumer goods manufacturer Procter & Gamble slumped 3.7 percent after it cut its sales and profit forecasts, citing a pullback by consumers amid the tariff and economic uncertainty.Shares in its British rival Unilever shed 0.3 percent although it said the impact of US tariffs on its products would be “limited”, as it reported a dip in first-quarter revenue.Shares in Pepsi slid nearly five percent after it too cut its 2025 sales and profit forecasts.Japanese auto giant Nissan predicted an enormous loss of around five billion dollars this year as US President Donald Trump’s tariffs on car imports hit the industry.In Paris, shares in luxury group Kering fell 1.6 percent after it reported a further sales slump at its flagship Gucci brand.In Frankfurt, German sportswear giant Adidas gained 2.9 percent as its profit almost doubled in the first quarter, beating expectations.Meanwhile Nintendo shares gained as much as 5.5 percent after the gaming giant boasted of higher-than-expected demand in Japan for pre-orders of its Switch 2 game console.- Key figures at 2030 GMT -New York – Dow: UP 1.2 percent at 40,093.40 (close)New York – S&P 500: UP 2.0 percent at 5,484.77 (close)New York – Nasdaq Composite: UP 2.7 percent at 17,166.04 (close)London – FTSE 100: UP 0.1 percent at 8,407.44 (close)Paris – CAC 40: UP 0.3 percent at 7,502.78 (close)Frankfurt – DAX: UP 0.5 percent at 22,064.51 (close)Tokyo – Nikkei 225: UP 0.5 percent at 35,039.15 (close)Hong Kong – Hang Seng Index: DOWN 0.7 percent at 21,909.76 (close)Shanghai – Composite: FLAT at 3,297.29 (close)Euro/dollar: UP at $1.1392 from $1.1316 on WednesdayPound/dollar: UP at $1.3339 from $1.3254Dollar/yen: DOWN at 142.62 from 143.45 yenEuro/pound: DOWN at 85.35 from 85.37 penceWest Texas Intermediate: UP 0.8 percent at $62.79 per barrelBrent North Sea Crude: UP 0.7 percent at $66.55 per barrelburs-jmb/md

Trump trade deals appear distant as tariff tensions simmer

US President Donald Trump’s promises of securing trade deals with major partners took another blow Thursday, with a French minister saying an agreement with the EU was “a long way” off and China insisting talks had not even started.Since returning to the presidency in January, Trump has imposed 10 percent tariffs on most trading partners, including the European Union, as a means of pressuring them to negotiate trade agreements more favorable to the United States.He has also slapped tariffs on sector-specific imports, adding to strained ties with partners.But he saved his toughest blows for China, slapping an additional 145 percent tariff on goods from the world’s second biggest economy this year — drawing strong retaliation.Even though top US officials have touted 18 proposals brought to the trade team and said Washington was setting the stage for a deal with China, Beijing has called claims of ongoing trade talks “groundless.”Separately, France’s economy minister Eric Lombard said Thursday in Washington that the EU and United States are far from reaching a deal on tariffs.- ‘Meeting with China’ -Asked about the state of negotiations with Beijing, Trump maintained on Thursday: “We’ve been meeting with China.”He did not give details on who was taking part in these discussions.Yet, hours earlier, Chinese Commerce Ministry spokesman He Yadong told reporters: “I would like to emphasize that there are currently no economic and trade negotiations between China and the United States.”China’s foreign ministry also called reports of ongoing talks “false.”On Wednesday, US Treasury Secretary Scott Bessent told reporters that Washington and Beijing were “not yet” speaking on lowering tariffs.He added that staggeringly high tariff levels would have to come down before trade talks can happen, and stressed that Trump has not made any unilateral offer to slash duties on Chinese products.In response to Trump’s most recent tariffs on Chinese imports, Beijing hit back with fresh 125 percent levies on American goods this year.Trump’s on-again, off-again approach to rolling out tariffs has roiled financial markets, as Washington unveiled steep duties before making carveouts in recent months.Most recently, the Trump administration temporarily excluded tech products like smartphones from his “reciprocal tariffs,” which include a 125 percent rate on imports from China.On Thursday, a White House official told AFP the Trump administration was looking at “streamlining overlap” between tariffs on automobiles, steel and aluminum, as well as those imposed over illicit fentanyl.But no final decision has been made on any amendments to tariffs on auto imports and parts, the White House added.- Mixed progress -The picture appears mixed for other trading partners, with Trump unveiling — then halting — even steeper levies on many of them.A 90-day pause on these higher levels of “reciprocal tariffs” on dozens of countries is set to expire in early July.France’s Lombard told reporters that the EU is “still a long way from an agreement” with the United States, on the sidelines of the International Monetary Fund and World Bank’s spring meetings in Washington.But he maintained that talks with the US side were warm, after engaging with officials including Bessent and Commerce Secretary Howard Lutnick.Lombard noted a desire from his counterparts to “move forward as quickly as possible.”On Wednesday, Bessent added that the United States was “very close” when it came to trade talks with India, while it is also “proceeding with the other trading partners.”Bessent added Thursday that Washington had a “very successful bilateral meeting” with South Korean representatives.”We will be talking technical terms as early as next week,” he said. “They came with their A game, and we will see if they follow through on that.”

Stocks rally rolls on in US, fizzles elsewhere

Wall Street stocks pushed higher for a third day on Thursday but the rally fizzled elsewhere as China poured cold water on US President Donald Trump’s comments talking up prospects of a deal to end their trade war.US stocks tanked on Monday after comments by Trump sparked fears he would try to remove Federal Reserve chief Jerome Powell.But global markets rebounded on Tuesday after Trump indicated he had no intention to oust Powell, also signalling that tariffs on China could be substantially lowered and that the United States would have a “fair deal” on trade with Beijing.China on Thursday said any claims of ongoing trade talks with Washington were “groundless”.Treasury Secretary Scott Bessent also tempered optimism, saying the two countries were “not yet” talking when it comes to lowering tariffs.Those comments led to a mostly lower session in Asia and early losses in Europe, which ended the day with small gains.However Wall Street pushed higher after a mixed open, with the Nasdaq briefly gaining two percent as tech stocks bounced higher.”Hopes of progress on trade deals were bolstered by reports that an agreement with India was near,” said Chris Beauchamp, chief market analyst at online trading platform IG.”The investing world is back to hanging onto every word out of the White House, but with such a confusing and often contradictory stance on tariffs, volatility is all we can really guarantee,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown.City Index and FOREX.com analyst Fawad Razaqzada said:  “Until we see meaningful resolution on the tariff front, it may well be the case that markets remain in a choppy environment with larger-than-usual swings.”The dollar weakened as White House uncertainty boosted demand for the Swiss franc, the yen and gold, seen as safe-haven assets.Meanwhile investors were also looking to a series of company results for signs of how tariffs may weigh on the outlook for the year ahead.”Comments about tariffs from business leaders are omnipresent and investors want to know how companies plan to deal with potential cost pressures,” said Russ Mould, investment director at AJ Bell.Shares in consumer goods manufacturer Procter & Gamble slumped five percent after it cut its sales and profit forecasts, citing a pullback by consumers amid the tariff and economic uncertainty.Shares in its British rival Unilever shed 0.3 percent although it said the impact of US tariffs on its products would be “limited”, as it reported a dip in first-quarter revenue.Shares in Pepsi slid 3.8 percent after it too cut its 2025 sales and profit forecasts.Japanese auto giant Nissan predicted an enormous loss of around five billion dollars this year as US President Donald Trump’s tariffs on car imports hit the industry.In Paris, shares in luxury group Kering fell 1.6 percent after it reported a further sales slump at its flagship Gucci brand.In Frankfurt, German sportswear giant Adidas gained 2.9 percent as its profit almost doubled in the first quarter, beating expectations.Meanwhile Nintendo shares gained as much as 5.5 percent after the gaming giant boasted of higher-than-expected demand in Japan for pre-orders of its Switch 2 game console.- Key figures at 1530 GMT -New York – Dow: UP 0.5 percent at 39,810.39 pointsNew York – S&P 500: UP 1.2 percent at 5,439.39New York – Nasdaq Composite: UP 1.7 percent at 16,989.20London – FTSE 100: UP less than 0.1 percent at 8,407.44 (close)Paris – CAC 40: UP 0.3 percent at 7,502.78 (close)Frankfurt – DAX: UP 0.5 percent at 22,064.51 (close)Tokyo – Nikkei 225: UP 0.5 percent at 35,039.15 (close)Hong Kong – Hang Seng Index: DOWN 0.7 percent at 21,909.76 (close)Shanghai – Composite: FLAT at 3,297.29 (close)Euro/dollar: UP at $1.1361 from $1.1317 on WednesdayPound/dollar: UP at $1.3301 from $1.3257Dollar/yen: DOWN at 142.69 from 143.49 yenEuro/pound: UP at 85.41 from 85.34 penceWest Texas Intermediate: UP 0.1 percent at $62.36 per barrelBrent North Sea Crude: UP 0.1 percent at $65.26 per barrelburs-rl/jj

European carmakers on China charm offensive as sales droop

Once blithely dominant in China, European automakers are now launching full-fledged charm offensives at consumers in the world’s largest car market, seeking to claw back sales lost to domestic rivals.At this week’s Auto Shanghai, the largest global industry show of its kind, foreign firms — in particular legacy German ones — pitched dozens of electric, high-tech models made “in China for China”. Volkswagen, the largest foreign automaker operating in the country, announced that by 2027 it would release more than 20 new cars for the local market. “There is still a huge opportunity for the German brands to make a comeback, but with each day without a truly tech-defined car (like Chinese rivals) it seems unlikely,” EV specialist Elliot Richards told AFP. Volkswagen entered the Chinese market through a joint venture when it first opened up, swiftly taking the lion’s share. Forty years later though, dozens of ultra-competitive homegrown car brands have blossomed. The Chinese government’s strategic support for the EV and hybrid sector has seen many domestic firms become world leaders in that area. BYD, Geely, Dongfeng and others took 65 percent of the local market in 2024, up 22.2 percent year-on-year, data from MarkLines shows. German brands’ share decreased by 10.8 percent in the same year. Other European brands like Renault still manufacture some cars in China, but have withdrawn from the local market. For those still in the game, holding ground in China is essential, as Europe’s market weakens and US President Donald Trump complicates access to the United States with his tariff policy.- ‘Turning a big ship’ -“Decades ago, it was very easy to develop, to produce one standard, and to provide it globally,” Volkswagen CEO Oliver Blume said at Auto Shanghai. “Today it’s impossible.”To adapt to an increasingly sophisticated and monied Chinese consumer base, firms have employed a variety of tactics. “German carmakers have invested heavily into their competitiveness in order to catch up with Chinese brands in the areas of electrification, intelligent vehicles and market responsiveness,” European Chamber Vice President Stefan Bernhart told AFP. Volkswagen works closely with domestic giants FAW, SAIC and JAC, and recently added Xpeng, a startup known for its tech proficiency, to its list of partners. Stellantis produces cars in China notably through its alliance with Leapmotor, another Chinese startup. Brands are also boosting local research and development staffing and investment, and increasing their output to what Volkswagen calls “China Speed”. Even as it considers layoffs in Europe, Volkswagen has reinforced its development capacity in China, planning to release its new models in 18 months and save 40 percent of the costs. “Turning a big ship around takes effort, commitment, and also some sacrifices,” Brian Gu, XPeng’s co-president, told AFP. “But I see they’re very committed to change.”- Mercedes versus Nio -Until 2023, luxury European behemoths like Mercedes and BMW could still count on the fact their cars were seen as status symbols, according to consultancy Inovev. Their sales slipped last year though, as the prestige of local brands like Nio and individual models like Xiaomi’s SU7 has risen. At Auto Shanghai, Mercedes presented a long version of its new electric star, the CLA, as well as a luxury minivan aimed at the rich Chinese leisure set. CEO Ola Kallenius was bullish about prospects in what he called the “world’s most competitive market”. He pointed to features targeted at local customers, including an advanced driver assistance system, as well as giant screens, as Chinese drivers “use (their car) as an entertainment space”. Porsche is also betting on its cachet — announcing this week it will concentrate on higher value sales rather than volume. However, with Chinese competitors slashing prices but not quality, consumers are no longer as willing to pay a premium for Western brands, according to Inovev.  “The name of the game is value,” said Tu Le, founder of Sino Auto Insights. “Chinese consumers between the age of 30 and 45 are going into showrooms, looking at Mercedes, looking at Nio, and buying that Nio instead.” But EV specialist Richards warned against complete gloom: “Nothing is certain in the automotive space, especially in China, and everything is still up for grabs.” 

Stocks rally fades along with hopes of quick US-China trade deal

A rally on global stock markets fizzled Thursday as China poured cold water on US President Donald Trump’s comments talking up the prospects of a deal to end their trade war.It follows a jump in markets the previous day as Trump signalled that tariffs on China could be substantially lowered and that the United States would have a “fair deal” on trade with Beijing.But China on Thursday said any claims of ongoing trade talks with Washington were “groundless”.Treasury Secretary Scott Bessent also tempered optimism, saying the two countries are “not yet” talking when it comes to lowering tariffs.”The investing world is back to hanging onto every word out of the White House, but with such a confusing and often contradictory stance on tariffs, volatility is all we can really guarantee,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown.City Index and FOREX.com analyst Fawad Razaqzada said that “until we see meaningful resolution on the tariff front, it may well be the case that markets remain in a choppy environment with larger-than-usual swings.”Wall Street opened mixed, while European equities were lower in afternoon trading.In Asia, Tokyo closed 0.5 percent higher, while Shanghai ended flat and Hong Kong fell almost one percent.Seoul fell after official data showed South Korea’s economy unexpectedly contracted 0.1 percent in the first three months of 2025.The dollar weakened as White House uncertainty boosted demand for the Swiss franc, the yen and gold, seen as safe-haven assets.Bessent also said that in its talks with Japan on tariffs, Washington had “absolutely no currency targets”, after repeated comments from Trump that he wants a stronger yen.Meanwhile investors are also looking to a series of company results for signs of how tariffs may weigh on the outlook for the year ahead.”Comments about tariffs from business leaders are omnipresent and investors want to know how companies plan to deal with potential cost pressures,” said Russ Mould, investment director at AJ Bell.Shares in consumer goods manufacturer Procter & Gamble slumped 3.5 percent after it cut its sales and profit forecasts, citing a pullback by consumers amid the tariff and economic uncertainty.Shares in its British rival Unilever shed 0.5 percent although it said the impact of US tariffs on its products would be “limited”, as it reported a dip in first-quarter revenue.Shares in Pepsi slid 1.8 percent after it too cut its 2025 sales and profit forecasts.Japanese auto giant Nissan predicted an enormous loss of around five billion dollars this year as US President Donald Trump’s tariffs on car imports hit the industry.In Paris, shares in luxury group Kering fell 2.5 percent after it reported a further sales slump at its flagship Gucci brand.In Frankfurt, German sportswear giant Adidas gained around three percent as its profit almost doubled in the first quarter, beating expectations.Meanwhile Nintendo shares gained as much as 5.5 percent after the gaming giant boasted of higher-than-expected demand in Japan for pre-orders of its Switch 2 game console.- Key figures at 1330 GMT -New York – Dow: DOWN 0.4 percent at 39,462.82 pointsNew York – S&P 500: UP less than 0.1 percent at 5,379.94New York – Nasdaq Composite: UP 0.3 percent at 16,755.08London – FTSE 100: DOWN 0.3 percent at 8,375.18Paris – CAC 40: DOWN 0.1 percent at 7,473.14Frankfurt – DAX: DOWN 0.2 percent at 21,913.61Tokyo – Nikkei 225: UP 0.5 percent at 35,039.15 (close)Hong Kong – Hang Seng Index: DOWN 0.7 percent at 21,909.76 (close)Shanghai – Composite: FLAT at 3,297.29 (close)Euro/dollar: UP at $1.1377 from $1.1317 on WednesdayPound/dollar: UP at $1.3305 from $1.3257Dollar/yen: DOWN at 142.40 from 143.49 yenEuro/pound: UP at 85.51 from 85.34 penceWest Texas Intermediate: UP 0.9 percent at $62.82 per barrelBrent North Sea Crude: UP 0.7 percent at $65.65 per barrelburs-rl/jhb

Warning lights flash at Nissan after monster profit warning

The road ahead looks treacherous for Nissan after the Japanese auto giant predicted an enormous loss just as US President Donald Trump’s tariffs on car imports hit the industry.Nissan on Thursday warned it expected to have posted a loss of 700-750 billion yen ($4.9-$5.3 billion) in the business year that ended in March, blaming asset writedowns and restructuring costs.”Despite these challenges, we have significant financial resources, a strong product pipeline and the determination to turn around Nissan in the coming period,” the company promised.But investors are unlikely to be reassured.Nissan, one of the top 10 automakers by unit sales with roots going back over a century, is heavily in debt and lacking a clear next move after a mooted merger with rival Honda collapsed.In March, the chief executive quit and investors have driven for the hills, sending Nissan shares down by more than 40 percent over the past year. – Job cuts -Nissan has lurched from crisis to crisis in recent years, with the dramatic arrest of former boss Carlos Ghosn — who escaped Japan in a musical instrument box — the Covid pandemic and the Ukraine war.It has an uninspiring product line, including in electric cars, especially in China where unit sales tumbled 24.1 percent in the 2023 financial year.On Wednesday, it announced investments of 10 billion yuan ($1.4 billion) into China, and said it would raise the number of new models it planned to launch by summer 2027 to 10, up from eight.”We were not at the same speed, mainly because the Chinese brands were exceptional with speed,” Nissan’s China chief Stephen Ma said at the Auto Shanghai industry show.Last year, Nissan announced 9,000 job cuts worldwide and that it was slashing production capacity by 20 percent.In February, talks with Honda on merging to create the world’s third-biggest automaker by number of vehicles collapsed. The negotiations had also involved Mitsubishi Motors. This prompted Moody’s to cut its credit rating on Nissan to junk, citing “weak profitability driven by slowing demand for its ageing model portfolio”.- Options limited -Now, to make matters worse, since April, the United States has imposed a 25-percent surcharge on all imported vehicles.Bloomberg Intelligence analyst Tatsuo Yoshida told AFP that Nissan will be the most severely impacted of all major Japanese automakers.Last year, Nissan generated 30 percent of its revenues in the United States, selling 924,000 vehicles there, 45 percent of them imported from Japan and Mexico.If Nissan absorbs the full impact of the tariffs without passing costs to the market or customers, this would mean a loss of 440 billion yen ($3.1 billion), Yoshida calculates.To hedge, Nissan is tweaking its production.This includes reversing plans to reduce output at its Tennessee plant and stopping sales in the United States of two models made in Mexico.But more drastic measures could be needed, including shifting production wholesale from Mexico and Japan to the United States.But this will take time, even assuming Nissan has spare factory capacity in America.”Transferring production means creating capacity, tooling, finding suppliers,” an industry source told AFP. “To achieve anything significant, it will take at least two years.”In any case, given the unpredictability of Trump’s policies, analysts said it was unlikely that Nissan — or any Japanese automaker — would announce any major shift for now.- Hon Hai help? -“If this situation goes on forever, it can be a death blow for Nissan, in a sense that it will run out of cash and default,” Yoshida said before Thursday’s profit warning.But he added that if this happens, he expects a financial partner to come to the rescue, in the shape of Honda or a technology firm like Apple.In February, Nissan shares briefly surged on a reported push to bring Elon Musk’s Tesla on as an investor.Reports in December said Taiwan’s Foxconn — also known as Hon Hai, which assembles iPhones and wants to move into cars — had approached Nissan to buy a majority stake.jug-tmo-tsz-stu/sco

Nissan forecasts huge annual net loss of up to $5.3 bn

Struggling Japanese auto giant Nissan issued a stark profit warning on Thursday, forecasting a huge loss of up to $5.3 billion in the 2024-25 financial year.One of the top 10 automakers by unit sales, Nissan is heavily in debt, having trouble selling vehicles in the Chinese market, and like its peers faces a potential body blow from US President Donald Trump’s vehicle tariffs.”We are taking the prudent step to revise our full-year outlook, reflecting a thorough review of our performance and the carrying value of production assets,” chief executive Ivan Espinosa said in a statement.”We now anticipate a significant net loss for the year, due primarily to a major asset impairment and restructuring costs as we continue to stabilise the company,” he said.”Despite these challenges, we have significant financial resources, a strong product pipeline and the determination to turnaround Nissan in the coming period.”Nissan — which will announce its earnings in mid-May for the 2024-25 financial year that ended on March 31 — said it expects to report a full-year net loss of 700-750 billion yen ($4.9 billion-$5.3 billion).In February, the company had projected a much smaller annual net loss of 80 billion yen ($560 million).Nissan has lurched from crisis to crisis in recent years as it was hit by the arrest of former boss Carlos Ghosn, the Covid pandemic and the Ukraine war.Last year, it announced 9,000 job cuts worldwide as it reported a 93 percent plunge in first-half net profit.Then merger talks with its rival Honda — seen as a bid to catch up with Tesla and Chinese electric vehicle firms — collapsed in February.Those discussions unravelled after Honda proposed to make its struggling competitor a subsidiary instead of a previously announced plan to integrate under a new holding company.- Junk rating -Nissan’s shares have shed more than 40 percent of their value over the past year, and in March, the company’s then-CEO Makoto Uchida said he was stepping down.Meanwhile ratings agencies have cut Nissan’s credit rating to junk, with Moody’s citing “weak profitability driven by slowing demand for its ageing model portfolio”.This financial year has not proved any easier so far — since April, the United States has imposed a 25-percent surcharge on all imported vehicles.Bloomberg Intelligence analyst Tatsuo Yoshida told AFP ahead of Thursday’s profit warning that Nissan would be the most severely impacted by the US tariffs of all major Japanese automakers, calling the impact “huge”.Last year, Nissan generated 30 percent of its revenues in the United States, selling 924,000 vehicles there, 45 percent of them imported from Japan and Mexico.The company could try to sell more cars in other regions, such as Southeast Asia, but Yoshida warned that “if this situation goes on forever, it can be a death blow for Nissan, in a sense that it will run out of cash and default”.But if this happens, he expects a financial partner to come to the rescue, either Honda or a technology firm like Apple.In February, Nissan shares briefly surged on a reported push to bring Elon Musk’s Tesla on as an investor.Reports in December said Taiwan’s Foxconn, which assembles iPhones and wants to move into cars, had approached Nissan to buy a majority stake.It then reportedly asked Renault to sell its 35 percent stake in Nissan, the legacy of a bumpy alliance with the French group dating back to 1999.

Stock markets mostly fall as hopes of US-China trade deal dampen

Stock markets were mostly lower on Thursday as China poured cold water on US President Donald Trump’s comments talking up the prospects of a deal to end their trade war.It follows a rally in markets the previous day as Trump signalled that tariffs on China could be substantially lowered and that United States would have a “fair deal” on trade with Beijing.But China on Thursday said any claims of ongoing trade talks with Washington were “groundless”.Treasury Secretary Scott Bessent also tempered optimism saying that the two countries are “not yet” talking when it comes to lowering tariffs.”The investing world is back to hanging onto every word out of the White House, but with such a confusing and often contradictory stance on tariffs, volatility is all we can really guarantee,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown.European equities fell on Thursday, with investors also looking to a series of company results for signs of how tariffs may weigh on the outlook for the year ahead.”Comments about tariffs from business leaders are omnipresent and investors want to know how companies plan to deal with potential cost pressures,” said Russ Mould, investment director at AJ Bell.The dollar weakened as White House uncertainty boosted demand for the Swiss franc, the yen and gold, seen as safe-haven assets.In Asia, Tokyo closed 0.5 percent higher, while Shanghai ended flat and Hong Kong fell almost one percent.Bessent also said that in its talks with Japan on tariffs, Washington had “absolutely no currency targets”, after repeated comments from Trump that he wants a stronger yen.Seoul fell after official data showed South Korea’s economy unexpectedly contracted 0.1 percent in the first three months of 2025.On Wall Street, the broad-based S&P 500 finished 1.7 percent higher on Wednesday. In company news, struggling Japanese auto giant Nissan issued a stark profit warning on Thursday. Meanwhile Nintendo shares gained as much as 5.5 percent after the gaming giant boasted of higher than expected demand in Japan for pre-orders of its Switch 2 game console.  French software company Dassault Systemes dropped around seven percent in Paris after its net profit declined and it cut its 2025 annual operating margin forecast.Luxury group Kering fell around four percent in Paris after reporting a further sales slump at its flagship Gucci brand.Also in Paris, carmaker Renault gained around two percent as it announced plans to further cut costs as US tariffs shake up the global car market while reporting a slight increase in sales volumes.In Frankfurt, German sportswear giant Adidas gained around three percent as its profit almost doubled in the first quarter, beating expectations.- Key figures at 1100 GMT -London – FTSE 100: DOWN 0.1 percent at 8,399.18 pointsParis – CAC 40: DOWN 0.2 percent at 7,464.88Frankfurt – DAX: DOWN 0.3 percent at 21,907.84Tokyo – Nikkei 225: UP 0.5 percent at 35,039.15 (close)Hong Kong – Hang Seng Index: DOWN 0.7 percent 21,909.76 (close)Shanghai – Composite: FLAT at 3,297.29 (close)New York – Dow: UP 1.1 percent at 39,606.57 (close)Euro/dollar: UP at $1.1383 from $1.1317 on WednesdayPound/dollar: UP at $1.3307 from $1.3257Dollar/yen: DOWN at 142.48 from 143.49 yen  Euro/pound: UP at 85.57 from 85.34 pence West Texas Intermediate: UP 1.2 percent at $63.02 per barrelBrent North Sea Crude: UP 1.1 percent at $65.88 per barrelburs-ajb/rl