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The uncertainty kicked up by Donald Trump’s stop-start tariff rollout will undoubtedly hit growth, the president of the World Bank said Wednesday, ahead of next week’s semi-annual meeting of global financial leaders in Washington.”Uncertainty and volatility are undoubtedly contributing to a more cautious economic and business environment,” Ajay Banga told reporters, alluding to the market turbulence unleashed by the new US administration’s tariff policy. This uncertainty would “certainly” cause slower growth than previously anticipated, he added during the virtual event. The World Bank and International Monetary Fund’s (IMF) Spring Meetings kick off on Monday, with the Bank keen to promote its agenda to drive job creation in developing and emerging market economies. But the gathering of finance ministers and central bankers will take place against a challenging international backdrop, with US President Donald Trump’s tariff policy threatening to derail economic growth in many parts of the world.Since taking office in January, the US president has imposed 25 percent levies on several sectors including, autos, steel and aluminum, as his administration seeks to redress what it says is an unfair trading relationship with the rest of the world. The White House also imposed a new “baseline” tariff of 10 percent on most countries, and announced higher import taxes on dozens of trading partners, only to then temporarily roll many of them back. China — America’s third-largest trading partner — has been hit with a barrage of new tariffs totalling 145 percent overall. Beijing, in turn, has announced retaliatory tariffs of 125 percent on US goods.- ‘The right questions’ – The United States is the top shareholder at the World Bank Group, and has historically been a key driver of policy at the Washington-based institution, which has been led by a US citizen for most of its history.Shortly before leaving office, Joe Biden’s administration committed the United States to $4 billion in new funding for the World Bank’s agency that leverages donor funds to provide loans and grants to some of the world’s poorest countries. The Trump administration has so far refused to commit to that $4 billion figure, raising questions about how much money it plans to contribute to the World Bank and other international financial institutions such as the International Monetary Fund (IMF). Speaking on Wednesday, Banga indicated that the Bank would make do with a smaller budget if the United States did not provide funding at the same level as before, but that he still hoped Washington would come around. “We’re having a constructive dialogue with the US administration,” he said. “I don’t know where it’ll end, but I’ve got no problem with the dialogue I’m having.””They’re asking the right questions, and we’re trying to give them the right answers,” he added. – Nuclear, gas financing -Donald Trump has a long public record questioning the impact of man-made climate change. Since his return to office, concerns have been raised that his administration’s view on climate change could hit the World Bank, which has committed to increasing its climate finance portfolio to 45 percent of total lending. Banga told reporters on Wednesday that, while “the words might be a problem in different people’s eyes,” the Bank’s climate actual commitments should be less controversial. “We are not taking away from education and schools and development to fund something,” he said. “What’s inside the 45 (percent) is a commitment that half of it, over time, will go to resiliency and adaptation.”Banga also suggested that the Bank could soon take another look at funding nuclear and natural gas energy projects — something that would require approval from donor countries. “There is no reason why a country in Africa should not care about affordable, accessible electricity,” he said. “And it includes gas, geothermal, hydroelectric, solar, wind and nuclear where it makes sense,” he added. 

Wall Street shares fell but European stocks diverged Wednesday after the US government imposed restrictions on exports of a key Nvidia chip to China, the latest trade war salvo between the world’s biggest economies.After a relatively peaceful couple of days on markets following tariff-related volatility last week, investors were once again on the defensive, sending gold, a safe-haven asset in times of uncertainty, above $3,300 an ounce for the first time.Wall Street’s main indexes were down in late morning deals, with Nvidia shares tanking by more than six percent and the dollar under pressure again.Nvidia notified regulators late Tuesday that it expects a $5.5 billion hit this quarter owing to a new US licencing requirement on the chip it can legally sell in China.The company at the heart of helping to power artificial intelligence said it must obtain licences to export its H20 chips to the Asian country because of concerns they would be used in supercomputers there.”It’s another stark reminder that geopolitics and technology remain deeply entangled — and that markets will continue to dance to Washington’s tune, whether they like it or not,” said Fawad Razaqzada, market analyst at City Index and Forex.com.The United States on Monday opened the door to tariffs targeting semiconductors and chip-making equipment, with Trump saying on Sunday an announcement would be made “over the next week”.Trump has also kicked off an investigation that could see tariffs imposed on critical minerals such as rare earths, which are used in a wide range of products including smartphones, wind turbines and electric vehicle motors.It is the latest front in Trump’s erratic trade war, which has seen the US leader impose a universal 10-percent duty, pause higher levies on some countries and temporarily exempt some sectors from duties.”Markets continue to suffer from the White House’s tariff flip-flopping,” Razaqzada said.”The stop-start nature of US trade policy this month has made long-term positioning something of a fool’s errand, with volatility dominating the landscape.”In Europe, London’s benchmark FTSE 100 stock index closed 0.3 percent higher, as official data showed UK inflation slowed more than expected in March.Frankfurt also finished 0.3 percent in the green but Paris fell almost 0.1 percent.Shares in Dutch tech giant ASML, which makes machines that produce semiconductors, fell more than five percent as its net bookings came in below expectations.ASML’s disappointing earnings report “has only added to the sector-wide tech concerns”, said David Morrison, analyst at Trade Nation.The dollar slid once more against main rivals. Yields on 10-year Treasury bills eased but remain high following a selloff last week that raised doubts about the haven stauts of US bonds.Gold hit a record $3,317.75 an ounce before paring back gains.Oil prices rose almost two percent after recent sharp falls on fears that the tariffs will dampen global economic growth.- Key figures at 1540 GMT -New York – Dow: DOWN 0.1 percent at 40,332.34 pointsNew York – S&P 500: DOWN 0.7 percent at 5,356.74New York – Nasdaq: DOWN 1.6 percent at 16,556.19London – FTSE 100: UP 0.3 percent at 8,275.60 (close)Paris – CAC 40: DOWN 0.1 percent at 7,329.97 (close)Frankfurt – DAX: UP 0.3 percent at 21,311.02 (close)Tokyo – Nikkei 225: DOWN 1.0 percent at 33,920.40 (close)Hong Kong – Hang Seng Index: DOWN 1.9 percent at 21,056.98 (close)Shanghai – Composite: UP 0.3 percent at 3,276.00 (close)Euro/dollar: UP at $1.1370 from $1.1291 on TuesdayPound/dollar: UP at $1.3235 from $1.3232Dollar/yen: DOWN at 142.65 yen from 143.18 yen Euro/pound: UP at 85.90 pence from 85.30 penceBrent North Sea Crude: UP 1.9 percent at $65.92 per barrelWest Texas Intermediate: UP 1.9 percent at $61.91 per barrelburs-bcp-lth/rmb

Prime Minister Anthony Albanese promised on Wednesday to defend Australia’s interests in its trade tangle with the United States, in a televised debate ahead of May 3 national elections.US President Donald Trump’s 10 percent tariffs on close ally Australia have loomed large in the duel between 62-year-old Albanese and his hard-nosed conservative challenger, former policeman Peter Dutton.Asked if he trusted the US president, Albanese said he had “no reason not to” despite Trump having promised to give “great consideration” to Canberra’s free trade arguments before deciding to impose the tariffs anyway.”We made it very clear that it was an act of self-harm,” the centre-left Labor Party leader said.But Albanese said his government “won’t budge” from Australian policies to ensure access to cheap medicines, enforce health rules on beef imports, and make big social media platforms pay for using local Australian news.”We will stand up for Australia’s national interest, because that is important,” he said.Albanese’s Labor Party has crept into a narrow lead in recent opinion polls, with some pundits citing public support for his criticism of the US tariffs that he has denounced as “not the act of a friend”.Dutton — running with the slogan “Let’s get Australia back on track” — has abandoned a poorly received promise to ban working from home for public sector staff, and softened a plan to axe tens of thousands of public sector jobs.Asked if he trusted Trump, Dutton replied: “Well, we trust the United States. And I don’t know the president. I have not met him.”But the 54-year-old opposition leader said his Liberal-National Party conservative coalition had contacts in the White House that would enable it to open negotiations on the tariffs.”We should be doing everything we can to enhance the relationship, to make our two countries stronger together,” he said.”We have stood with America in every battle. It’s an incredible relationship.”- Nuclear reactors -On defence, Albanese denied having any contingency plans in case the Trump administration pulls out of a US-British-Australian agreement to equip Australia’s navy with stealthy, nuclear-powered submarines.The so-called AUKUS agreement “is in the interest of the US”, he said.Both sides have promised measures to tame the cost of living, which top voters’ concerns in the polls.However, their biggest divide is on how to tackle climate change.Albanese’s government has embraced the global push towards decarbonisation, warning of a future in which iron ore and polluting coal exports no longer prop up the economy. His election catchcry is “building Australia’s future” — an agenda that includes big subsidies for renewable energy and green manufacturing in the sun-soaked country.Dutton’s signature policy is a US$200 billion scheme to construct seven industrial-scale nuclear reactors while slowing the rollout of solar and wind-generated energy.Dutton said in Wednesday’s debate on public broadcaster ABC that he would use the federal government’s powers to build nuclear power plants “if need be”, even in the face of local and state opposition.Though conceding climate change was having an impact, Dutton said he could not tell whether it was causing specific floods or disasters that were part of the history of Australia.”I will let scientists and others pass that judgement.”Albanese replied that the science was clear, even if climate change could not be traced to every weather event.”The science told us that the events would be more extreme and they would be more frequent, and that is what we are seeing playing out,” he said.Voting in Australian elections has been compulsory since 1924. Registered voters who do not cast their ballot are slapped with an “administrative penalty” of around Aus$20 (US$12). Turnout consistently tops 90 percent. 

China told Washington on Wednesday to “stop threatening and blackmailing” after US President Donald Trump said it was up to Beijing to come to the negotiating table to discuss ending their trade war.Trump has slapped new tariffs on friend and foe alike but has reserved his heaviest blows for China, with new levies of up to 145 percent on many Chinese imports even as Beijing has retaliated with duties on US goods of 125 percent.”If the US really wants to resolve the issue through dialogue and negotiation, it should stop exerting extreme pressure, stop threatening and blackmailing, and talk to China on the basis of equality, respect and mutual benefit,” Foreign Ministry spokesman Lin Jian said.”China’s position has been very clear. There is no winner in a tariff war or a trade war,” Lin said, adding: “China does not want to fight, but it is not afraid to fight.”Trump’s new levies mean that the tariffs on certain Chinese goods are as high as 245 percent, which the White House said in a factsheet on Tuesday were “as a result of its retaliatory actions”.Beijing’s commerce ministry said in a statement later on Wednesday it had “noted that the cumulative tariffs on some individual Chinese exports to the US have reached 245 percent under various designations”, without detailing the scope of the products affected.”The United States has instrumentalized and weaponized tariffs to a completely irrational level,” the ministry said, adding that China would “ignore the US’s utterly meaningless tariff numbers game”.The Republican initially imposed 20 percent tariffs on imports from China over its alleged role in the fentanyl supply chain, on top of duties from previous administrations, then added 125 percent over trade practices that Washington deems unfair.His administration has, however, given temporary reprieve for certain tech products such as smartphones and laptops. The White House said on Tuesday it was up to Beijing to make the first move towards ending the dispute, which economists warn could cause a global recession.”The ball is in China’s court. China needs to make a deal with us. We don’t have to make a deal with them,” said a statement from Trump read out by Press Secretary Karoline Leavitt.- China growth -China said on Wednesday its economy grew a forecast-beating 5.4 percent in the first quarter as exporters rushed to get goods out of factory gates ahead of the US levies.”The escalation happening in April is going to be felt in the second-quarter figures as the tariffs will send stateside firms looking to other suppliers, impeding Chinese exports and slamming the brakes on investment,” Heron Lim from Moody’s Analytics told AFP.Japan’s envoy for talks slated for Wednesday in Washington said he was optimistic of a “win-win” outcome for both countries.Ryosei Akazawa, who was due to meet US Treasury Secretary Scott Bessent, said he would “protect our national interest”.Carmaker Honda said on Wednesday it will shift production of its hybrid Civic model from Japan to the United States, although that represents a very small part of its global output.The rationale behind the decision “is not a single issue”, a spokesman for the Japanese firm said. “The decision is based on the company’s policy since its foundation that we produce cars where the demand is.”South Korea, another major exporter in particular of semiconductors and cars, said Finance Minister Choi Sang-mok would meet Bessent next week.”The current priority is to use negotiations… to delay the imposition of reciprocal tariffs as much as possible and to minimise uncertainty for Korean companies operating not only in the US but also in global markets,” Choi said on Tuesday.Trump has imposed the steep duties on imports from China since the start of the year, alongside his 10 percent “baseline” tariff on many US trading partners.His administration recently widened its exemptions from those tariffs, excluding certain tech products like smartphones and laptops from the global 10 percent tariff and the 125 percent levy on China.Chip stocks across Asia slumped after Nvidia said it expects a $5.5 billion hit due to a new US licensing requirement on the primary chip it can legally sell in China.Trump also ordered a probe on Tuesday that may result in tariffs on critical minerals, rare-earth metals and associated products such as smartphones.burs-mjw/pbt

European and Asian stock markets mostly retreated Wednesday after the US government imposed restrictions on exports of a key Nvidia chip to China, the latest trade war salvo between the world’s biggest economies.Nvidia late Tuesday notified regulators that it expects a $5.5 billion hit this quarter owing to a new US licensing requirement on the chip it can legally sell in the Asian country.The company at the heart of helping to power artificial intelligence said it must obtain licenses to export its H20 chips to China because of concerns they may be used in supercomputers there.President Donald Trump’s decision over Nvidia is “signalling a tech-led decline for US equities” when Wall Street opens, noted Joshua Mahony, analyst at trading group Scope Markets.After a relatively peaceful couple of days on markets following last week’s tariff-fuelled ructions, investors were once again on the defensive, sending safe haven gold above $3,300 an ounce for the first time.Nvidia shares tumbled around six percent in after-market trade, and its Asian suppliers were also hit.Trump has also kicked off an investigation that could see tariffs imposed on critical minerals such as rare earths, which are used in a wide range of products including smartphones, wind turbines and electric vehicle motors.”Nvidia dropped the mic, revealing fresh export curbs on AI gear headed to China,” said Stephen Innes at SPI Asset Management. “Then came the other shoe: Trump ordering a new probe into tariffs on critical minerals. Boom — just like that, we’re back in whiplash mode.”Welcome to the new normal: one step forward, two tariff probes back,” added Innes.In Europe, London’s benchmark FTSE 100 stocks index was down about 0.5 percent around midday, even as official data showed UK inflation slowed more than expected in March.Paris and Frankfurt shed a similar amount. The dollar slid once more against main rivals, helping gold to reach yet another fresh record high, this time at $3,317.75.Oil prices rose nearly one percent after recent sharp falls on fears that the tariffs will dampen global economic growth.However, cheaper oil could help put on lid on inflation, analysts said.Trump’s most recent moves mark the latest salvo in an increasingly nasty row that has seen Washington and Beijing hit each other with eye-watering tariffs.China did little to soothe worries Wednesday by saying US levies were putting pressure on its economy, even if official data showed it expanded more than expected in the first quarter.Beijing told Washington to “stop threatening and blackmailing”.A decision by Hong Kong’s postal service to stop shipping US-bound goods in response to “bullying” levies added to the unease.- Key figures around 1035 GMT -London – FTSE 100: DOWN 0.4 percent at 8,220.27 pointsParis – CAC 40: DOWN 0.5 percent at 7,295.34Frankfurt – DAX: DOWN 0.5 percent at 21,150.31 Tokyo – Nikkei 225: DOWN 1.0 percent at 33,920.40 (close)Hong Kong – Hang Seng Index: DOWN 1.9 percent at 21,056.98 (close)Shanghai – Composite: UP 0.3 percent at 3,276.00 (close)New York – Dow: UP 0.4 percent at 40,368.96 (close)Euro/dollar: UP at $1.1369 from $1.1291 on TuesdayPound/dollar: UP at $1.3272 from $1.3232Dollar/yen: DOWN at 142.66 yen from 143.18 yen Euro/pound: UP at 85.69 pence from 85.30 penceBrent North Sea Crude: UP 0.9 percent at $65.23 per barrelWest Texas Intermediate: UP 0.9 percent at $61.87 per barrelburs-bcp/lth

Asian stocks swung Wednesday after Nvidia’s announcement of new US licensing rules on shipments of its new chip to China rattled investor confidence already shot by Donald Trump’s sweeping trade war.After a relatively peaceful couple of days following last week’s tariff-fuelled ructions, investors were once again on the defensive as a standoff between the world’s top economic superpowers shows no signs of abating.China did little to soothe worries by saying that US levies were putting pressure on its economy, which data showed expanded more than expected in the first quarter.A decision by Hong Kong’s postal service to stop shipping US-bound goods in response to “bullying” levies added to the unease.Chip behemoth Nvidia said Tuesday that US officials had told the firm it must obtain licences to ship its new H20 semiconductors to China because of concerns they may be used in supercomputers there, adding the rule would last indefinitely.The move marks the latest salvo in an increasingly nasty row that has seen Washington and Beijing hit each other with eye-watering tariffs, with the technology sector and security at the heart of the issue.US levies on other trading partners — despite being mostly paused — have sent global markets into a tailspin as governments scramble to cushion themselves from the impact of the measures, with many heading to Washington for talks.Trump has also kicked off an investigation that could see tariffs imposed on critical minerals such as rare earths that are used in a wide range of products including smartphones, wind turbines and electric vehicle motors.”Silence is never golden — it’s just the calm before the next chaos cycle. And sure enough, the tape just got rattled again,” said Stephen Innes at SPI Asset Management.”Nvidia dropped the mic, revealing fresh export curbs on AI gear headed to China. Then came the other shoe: Trump ordering a new probe into tariffs on critical minerals. Boom — just like that, we’re back in whiplash mode.”Welcome to the new normal: one step forward, two tariff probes back.”Nvidia said the chip measures would cost it more than $5 billion. The firm’s shares tumbled around six percent in after-market trade, and its Asian suppliers were also hit.Taiwan titan TSMC shed more than two percent, Japanese firm Advantest was off more than six percent and SK hynix in South Korea lost more than three percent.And most broader markets retreated across Asia.Hong Kong led losses, dropping 1.9 percent, while Tokyo, Sydney, Seoul, Taipei, Manila and Jakarta were also down. Singapore, Mumbai, Bangkok and Wellington rose.London fell even as UK inflation slowed more than expected in March, while Paris and Frankfurt also retreated.A weak dollar, and an ongoing run into safe havens, saw gold spike to a fresh record high of $3,291.81.As investors look for China and the United States to find some common ground that could ease the tensions, Trump said it was up to Beijing to come to the negotiating table.”The ball is in China’s court. China needs to make a deal with us. We don’t have to make a deal with them,” said a statement from the president read out by Press Secretary Karoline Leavitt at a briefing.”There’s no difference between China and any other country except they are much larger,” she added.Trump also accused China of going back on a major deal with US aviation giant Boeing — following a Bloomberg news report that Beijing ordered airlines not to take further deliveries of the company’s jets.Shanghai stocks edged up though traders appeared mostly unfazed by news that the world’s number two economy expanded much more than expected in January-March, while retail sales, a key guide of consumption, also came in above forecasts.The reading comes after analysts said figures Monday revealing China’s exports soared more than estimated in March were down to a “frontloading” of orders ahead of Trump’s so-called “Liberation Day” tariffs on April 2.”China’s prospects for this year remains muted, as rising tensions with the US lead to weaker exports and investment. That chaos will keep households nervous,” said Sarah Tan, and economist at Moody’s Analytics.- Key figures around 0810 GMT -Tokyo – Nikkei 225: DOWN 1.0 percent at 33,920.40 (close)Hong Kong – Hang Seng Index: DOWN 1.9 percent at 21,056.98 (close)Shanghai – Composite: UP 0.3 percent at 3,276.00 (close)London – FTSE 100: DOWN 0.7 percent at 8,193.25Dollar/yen: DOWN at 142.15 yen from 143.18 yen on TuesdayEuro/dollar: UP at $1.1384 from $1.1291Pound/dollar: UP at $1.3280 from $1.3232Euro/pound: UP at 85.72 pence from 85.30 penceWest Texas Intermediate: DOWN 0.6 percent at $60.98 per barrelBrent North Sea Crude: DOWN 0.5 percent at $64.33 per barrelNew York – Dow: DOWN 0.4 percent at 40,368.96 (close)

Forecast-beating growth in China’s first quarter may have offered Beijing’s economic planners some much needed good news — but analysts warn they should strap in for tariff-induced woes further down the line.The National Bureau of Statistics said Wednesday the world’s number-two economy expanded 5.4 percent on-year in January-March, helped by a surge in exports.However, observers said the bulk of that came from “frontloading” as business rushed to ship goods out of the factory before Donald Trump’s trade blitz kicked in.And while state efforts to boost lagging consumption — for months a drag on growth — played a role in the growth boost, the outlook remained uncertain.”It’s too early to interpret this strength as a sign of lasting market recovery,” Yue Su at the Economist Intelligence Unit told AFP.”The strong performance has been driven by trade frontloading ahead of anticipated tariffs and a policy-driven rebound in consumption — particularly in electronics and home appliances,” she added.Tit-for-tat exchanges have seen US levies imposed on China rise to 145 percent, and Beijing setting a retaliatory 125 percent toll on imports from America.Trump has said the ball is in China’s court if it wants to find a way out and Beijing has, in turn, vowed to “fight to the end” in a trade war that shows few signs of letting up.But Beijing’s gung-ho rhetoric belies deep concerns about the impact that Trump’s tariffs could have on the deeply export-dependent Chinese economy. “The escalation happening in April is going to be felt in the second-quarter figures as the tariffs will send stateside firms looking to other suppliers, impeding Chinese exports and slamming the brakes on investment,” Heron Lim, an economist at Moody’s Analytics, told AFP.”This will hit electronics makers and exporters the hardest, as their products dominate China’s US-bound exports,” he said.And Louise Loo at Oxford Economics warned that “the improvement in growth momentum is very likely to be short-circuited in the coming months by the incoming headwinds of punitive tariffs”.  – More macro please -China on Wednesday admitted that the global economy was becoming more “complex and severe” — and that tariffs were putting “pressure” on trade.A top economic planner also stressed that more “proactive and effective macro policies” would be needed to boost growth.Beijing last year announced a string of aggressive measures to reignite the economy, including interest rate cuts, cancelling restrictions on homebuying, hiking the debt ceiling for local governments and bolstering support for financial markets.After a blistering market rally fuelled by hopes for a long-awaited “bazooka stimulus”, optimism waned as authorities refrained from providing a specific figure for the bailout or fleshing out any of the pledges.But as a potentially crippling trade war looms, analysts agree that Beijing may finally feel pressed to do more to boost domestic spending and tariff-proof the economy.A debt crisis in the property sector — long a major drag on broader consumer sentiment — remains a crucial handicap for the economy.”Throwing the domestic economy a lifeline is more important than ever before,” Sarah Tan of Moody’s Analytics said.”The cratering property market remains front and centre of households’ concerns,” she added.”Combined with the shaky labour market, falling house prices are giving households good reason to prioritise saving over spending.”Insights into how that stimulus could work could emerge from an expected meeting of China’s Politburo, its ruling party Communist Party’s top decision-making body.”We continue to anticipate a $2 trillion stimulus package focused on consumption, infrastructure, urban renewal, and shantytown renovation,” said Su at the Economist Intelligence Unit.”Challenges to China’s economy remain significant over the coming quarters.”

Dutch tech giant ASML warned on Wednesday of growing economic uncertainty due to US tariffs but the company kept its 2025 sales forecast intact.Shares in ASML, which makes cutting-edge machines for the chip sector, plunged at the market open, giving up around seven percent as the closely watched net bookings figures came in below expectations.”Our conversations so far with customers support our expectation that 2025 and 2026 will be growth years,” said CEO Christophe Fouquet.”However, the recent tariff announcements have increased uncertainty in the macro environment and the situation will remain dynamic for a while,” he added.The United States has opened the door to tariffs targeting semiconductors and chip-making equipment, with Trump saying Sunday an announcement would be made “over the next week”.Trump has imposed a 10 percent global tariff on all imports to the United States, while pausing for now higher duties for goods from the European Union and dozens of other countries.Despite the tariff turmoil, ASML firm predicted sales for this year at between 30 billion and 35 billion euros ($34.1 billion and $39.8 billion), unchanged from previous forecasts.Net bookings, the figure most scrutinised by traders as a predictor of future performance, were 3.9 billion euros in the first quarter, compared to 7.1 billion euros in the fourth quarter of last year.This was significantly below what the financial markets had been looking for, resulting in the share sell-off.Sales for the first quarter came in at 7.7 billion euros, in line with the firm’s expectations.Fouquet predicted second-quarter total net sales between 7.2 billion and 7.7 billion euros.ASML’s net profit came in at 2.4 billion euros, compared to 1.2 billion euros in the first quarter of last year.Longer term, ASML believes the rapidly expanding AI market will push sales up to between 44 and 60 billion euros by 2030.”We still see a lot of strength in AI. In fact some of the demand for this year… but also for next year has solidified. So that’s very encouraging,” said Fouquet.- China chip curbs -The financial impact of the tariffs on the firm, Fouquet said, was “something that we don’t know how to quantify yet. But this is adding definitely uncertainty on the long term.”Tariffs aside, the tech giant was already caught in the middle of a US-led effort to curb high-tech exports to China over fears they could be used to bolster the country’s military.Earlier this year, the Dutch government announced it was tightening its export controls on advanced semiconductor production equipment, but said the measures targeted a “very limited” number of goods.ASML responded at the time that the moves would have “no additional impact” on its business.Beijing has been infuriated by the export curbs, describing them as “technological terrorism.”

The head of ASML said on Wednesday there was “increased macro uncertainty” due to tariffs but the Dutch tech giant kept its sales forecasts for this year unchanged.ASML’s net profits came in at 2.4 billion euros, compared to 1.2 billion euros in the first quarter of last year, said the firm, which makes cutting-edge machines for the chip sector.”Our conversations so far with customers support our expectation that 2025 and 2026 will be growth years,” said CEO Christophe Fouquet.”However, the recent tariff announcements have increased uncertainty in the macro environment and the situation will remain dynamic for a while,” he added.The firm predicted sales for this year at between 30 and 35 billion euros, unchanged from previous forecasts.Net bookings, the figure most closely watched in the markets as a predictor of future performance, were 3.9 billion euros in the first quarter, compared to 7.1 billion euros in the fourth quarter of last year.Sales for the first quarter came in at 7.7 billion, in line with the firm’s expectations.Fouquet predicted second-quarter total net sales between 7.2 billion and 7.7 billion.Longer term, ASML believes the rapidly expanding AI market will push sales up to between 44 and 60 billion euros by 2030.”We still see a lot of strength in AI. In fact some of the demand for this year… but also for next year has solidified. So that’s very encouraging,” said Fouquet.The financial impact of the tariffs on the firm, Fouquet said, was “something that we don’t know how to quantify yet. But this is adding definitely uncertainty on the long term.”Tariffs aside, the tech giant was already caught in the middle of a US-led effort to curb high-tech exports to China over fears they could be used to bolster the country’s military.Earlier this year, the Dutch government announced it was tightening its export controls on advanced semiconductor production equipment, but said the measures targeted a “very limited” number of goods.ASML responded at the time that the moves would have “no additional impact” on its business.Beijing has been infuriated by the export curbs, describing them as “technological terrorism.”

Worldwide consumption of wine fell in 2024 to its lowest level in more than 60 years, the main trade body said Tuesday, raising concerns about new risks from US tariffs.The International Organisation of Vine and Wine (OIV) said that 2024 sales fell 3.3 percent from the previous year to 214.2 million hectolitres.The OIV, whose report was based on government figures, said this would be the lowest sales figure since 1961, when sales were 213.6 million hl.Production is also at its lowest level in more than 60 years, having fallen 4.8 percent in 2024 to 225.8 million hl. OIV statistics chief Giorgio Delgrosso said the wine industry had been hit by a perfect storm with health concerns driving down consumption in many countries while economic factors had added to troubles. “Beyond the short-term economic and geopolitical disruptions,” said the IOV’s annual report, “it is important to consider the structural, long-term factors also contributing to the observed decline in wine consumption.”The OIV said that the consumer is now paying about 30 percent more for a bottle now than in 2019-2020 and overall consumption has fallen by 12 percent since then.The United States, the world’s top wine market, saw consumption fall 5.8 percent to 33.3 million hl.Delgrosso said that tariffs ordered by US President Donald Trump, even though temporarily suspended, could become “another bomb” for the wine industry.Sales in China remain below pre-Covid-19 levels, despite a rebound since the pandemic.Europe, which accounts for nearly half of worldwide sales, saw consumption fall 2.8 percent last year. Even in France, one of the key global producers, 3.6 percent less wine was knocked back last year.Spain and Portugal were among rare markets where consumption increased.The OIV said production had been hit environmental extremes such as above average rainfall in some key regions and droughts in others.  Italy was the world’s top producer with 44 million hl, while France’s output fell 23 percent to 36.1 million hl, its lowest level since 1957.Italy is also the biggest wine exporter and its trade increased because of the popularity of sparkling wines such as Prosecco.Spain produced 31 million hl, while US wine output fell 17.2 percent to 21.1 million hl, mainly because of extreme heat.The OIV could not predict if consumption would take off again and wine industry players, such as the French retail chain Nicolas say there is a “generational” fall in drinking.”People do not drink in a festive way anymore and young people consume less than their parents,” the company said in a statement to AFP. But it added, “people drink less, but better” and so are ready to spend more.