Markets rise as Trump chip exemptions boost tech giants

Asian equities rose Thursday, with big-name chip firms making big gains after Donald Trump said those investing in the United States would be exempted from a threatened 100-percent tariff on semiconductors.The advances built on a strong lead from Wall Street and extended the previous day’s rally fuelled by hopes the Federal Reserve will cut interest rates next month.A day before sweeping tariffs were due to come into effect on dozens of countries, the president said: “we’re going to be putting a very large tariff on chips and semiconductors”.He added that the level would be “100 percent” but did not offer a timetable.However, he said “the good news for companies like Apple is, if you’re building in the United States, or have committed to build… in the United States, there will be no charge”.Stock gains were led by Taiwan’s giant TSMC, which surged almost five percent in early trade, with the island’s National Development Council chief Liu Chin-ching saying the firm was in the clear.”Because Taiwan’s main exporter is TSMC, which has factories in the United States, TSMC is exempt,” he told a briefing in parliament.TSMC, which is ramping up manufacturing in Arizona, has pledged to invest as much as $165 billion in the United States, which the firm said in March was the “largest single foreign direct investment in US history”.Seoul-listed Samsung, which is also pumping billions into the world’s number one economy, rose more than two percent while South Korean rival SK hynix was also up.Apple-linked firms were also helped after the US giant said it will invest an additional $100 billion in the United States, taking its total pledge to $600 billion over the next four years.Foxconn and Pegatron both rose in Taipei.However, Tokyo Electron and Renesas both retreated in Japanese trade.- Tariff talks -“To some degree this outcome would be something of a relief,” said Morgan Stanley analysts.”Yes, 100 percent tariffs are unpalatable but if companies are given time to restore them, the real tax is just the higher cost of building chips in the United States.”Trump’s remarks came hours before his wide-ranging “reciprocal” tariffs are set to kick in against trading partners, and after he doubled his levy on India to 50 percent over its purchase of Russian oil.Fifty percent tolls on Brazilian goods came into place Wednesday, with significant exemptions, after Trump targeted Latin America’s biggest economy over its prosecution of former president Jair Bolsonaro.Investors are keeping tabs on talks between the White House and New Delhi, as well as other countries including Switzerland, which was this week hammered with a 39 percent toll.Asian markets extended their recent run-up and have regained much of last week’s losses sparked by the president’s tariff announcements and weak US jobs data.Tokyo, Hong Kong, Shanghai, Singapore, Seoul and Wellington were all in the green, with Taipei leading the way thanks to the surge in TSMC.The gains followed a strong day on Wall Street, where Apple jumped more than five percent and Amazon piled on four percent.Traders had already been on a buying streak as they grew optimistic that the Fed will cut rates after data last week showing US jobs creation cratered in May, June and July, signalling the economy was weakening. US futures rose Thursday.Oil prices rose after Trump threatened penalties on other countries that “directly or indirectly” import Russian oil, after imposing his extra toll on India.Still, traders are keeping tabs on developments regarding Moscow and its war in Ukraine after the US president said he could meet with Vladimir Putin “very soon” following what he called highly productive talks between his special envoy and the Russian leader.- Key figures at around 0230 GMT -Tokyo – Nikkei 225: UP 0.8 percent at 41,114.68 (break)Hong Kong – Hang Seng Index: UP 0.3 percent at 24,985.53Shanghai – Composite: UP 0.1 percent at 3,636.23Euro/dollar: DOWN at $1.1657 from $1.1659 on WednesdayPound/dollar: DOWN at $1.3355 from $1.3358Dollar/yen: UP at 147.50 yen from 147.38 yenEuro/pound: UP at 87.29 pence from 87.23 penceWest Texas Intermediate: UP 0.9 percent at $64.93 per barrelBrent North Sea Crude: UP 0.9 percent at $67.47 per barrelNew York – Dow: UP 0.2 percent at 44,193.12 (close)London – FTSE 100: UP 0.2 percent at 9,164.31 (close) 

United Airlines flights grounded in the US

Thousands of US air passengers were facing delays Wednesday after United Airlines halted many departures in the wake of a systemwide problem.So-called “mainline flights” — those moving between major hubs — were grounded for over an hour before engineers were able to get things up and running again.”We are working with customers to get them to their destinations after a technology disruption on Wednesday evening,” the airline said in a statement.”The underlying technology issue has been resolved, and, while we expect residual delays, our team is working to restore our normal operations.”The Federal Aviation Administration, which regulates flight in the United States, had issued ground stops at several major airports.”We’re aware United experienced a technology issue disrupting their operations. Some delays may continue as they work through the recovery process,” the FAA said in a statement. “We’ve offered full support to help address their flight backlog and remain in close contact with United.”The orders affected airports in Denver, Newark, Houston and Chicago and only applied to United, the FAA’s website said.The outage was the latest problem to afflict America’s aviation sector.Last month Alaska Airlines suffered an IT problem that left its planes on the ground for several hours.That came after air traffic control systems went down at a Newark area airport on more than one occasion this year, shaking passengers’ faith in the system.In January a mid-air collision near Washington’s Reagan National Airport involving a passenger jet and a military helicopter claimed dozens of lives.

Apple to invest additional $100 bn in US

Apple will invest an additional $100 billion in the United States, taking its total pledge to $600 billion over the next four years, US President Donald Trump said Wednesday.Trump announced the increased commitment at the White House alongside the tech giant’s CEO Tim Cook, calling it “the largest investment Apple has made in America.” “Apple will massively increase spending on its domestic supply chain,” Trump added, highlighting a new production facility for the glass used to make iPhone screens in Kentucky.In February, Apple said it would spend more than $500 billion in the United States and hire 20,000 people, with Trump quickly taking credit for the decision. It builds on plans announced in 2021, when the company founded by Steve Jobs said it would invest $430 billion in the country and add 20,000 jobs over the next five years.”This year alone, American manufacturers are on track to make 19 billion chips for Apple in 24 factories across 12 different states,” Cook said in the Oval Office.Trump, who has pushed US companies to shift manufacturing home by slapping tariffs on trading partners, claimed that his administration was to thank for the investment.”This is a significant step toward the ultimate goal of… ensuring that iPhones sold in the United States of America also are made in America,” Trump said. Cook later clarified that, while many iPhone components will be manufactured in the United States, the complete assembly of iPhones will still be conducted overseas.”If you look at the bulk of it, we’re doing a lot of the semiconductors here, we’re doing the glass here, we’re doing the Face ID module here… and we’re doing these for products sold elsewhere in the world,” Cook said.- ‘They’re coming home’ -Trump has repeatedly said he plans to impose a “100 percent” tariff on imported semiconductors, a major export of Taiwan, South Korea, China and Japan. “We’re going to be putting a very large tariff on chips and semiconductors,” he told reporters Wednesday at the White House.Taiwanese giant TSMC — the world’s largest contract maker of chips, which counts Nvidia and Apple among its clients — would be “exempt” from those tariffs as it has factories in the United States, Taipei said Thursday. While he did not offer a timetable for enactment of the new tech levies, on Tuesday he said fresh tariffs on imported pharmaceuticals and semiconductors and chips could be unveiled within the coming week.The US is “going to be very rich and it’s companies like Apple, they’re coming home,” Trump said.Trump specified further that “Apple will help develop and manufacture semiconductors and semiconductor equipment in Texas, Utah, Arizona and New York.” He noted that if tech companies commit to manufacturing their wares in the US, “there will be no charge.”Apple reported a quarterly profit of $23.4 billion in late July, topping forecasts despite facing higher costs due to Trump’s sweeping levies.The tariffs are essentially a tax paid by companies importing goods to the United States. This means Apple is on the hook for tariffs on iPhones and other products or components it brings into the country from abroad.

Apple to invest additional $100 bn in US

Apple will invest an additional $100 billion in the United States, taking its total pledge to $600 billion over the next four years, US President Donald Trump said Wednesday.Trump announced the increased commitment at the White House alongside the tech giant’s CEO Tim Cook, calling it “the largest investment Apple has made in America.” “Apple will massively increase spending on its domestic supply chain,” Trump added, highlighting a new production facility for the glass used to make iPhone screens in Kentucky.In February, Apple said it would spend more than $500 billion in the United States and hire 20,000 people, with Trump quickly taking credit for the decision. It builds on plans announced in 2021, when the company founded by Steve Jobs said it would invest $430 billion in the country and add 20,000 jobs over the next five years.”This year alone, American manufacturers are on track to make 19 billion chips for Apple in 24 factories across 12 different states,” Cook said in the Oval Office.Trump, who has pushed US companies to shift manufacturing home by slapping tariffs on trading partners, claimed that his administration was to thank for the investment.”This is a significant step toward the ultimate goal of… ensuring that iPhones sold in the United States of America also are made in America,” Trump said. Cook later clarified that, while many iPhone components will be manufactured in the United States, the complete assembly of iPhones will still be conducted overseas.”If you look at the bulk of it, we’re doing a lot of the semiconductors here, we’re doing the glass here, we’re doing the Face ID module here… and we’re doing these for products sold elsewhere in the world,” Cook said.- ‘They’re coming home’ -Trump has repeatedly said he plans to impose a “100 percent” tariff on imported semiconductors, a major export of Taiwan, South Korea, China and Japan. “We’re going to be putting a very large tariff on chips and semiconductors,” he told reporters Wednesday at the White House.Taiwanese giant TSMC — the world’s largest contract maker of chips, which counts Nvidia and Apple among its clients — would be “exempt” from those tariffs as it has factories in the United States, Taipei said Thursday. While he did not offer a timetable for enactment of the new tech levies, on Tuesday he said fresh tariffs on imported pharmaceuticals and semiconductors and chips could be unveiled within the coming week.The US is “going to be very rich and it’s companies like Apple, they’re coming home,” Trump said.Trump specified further that “Apple will help develop and manufacture semiconductors and semiconductor equipment in Texas, Utah, Arizona and New York.” He noted that if tech companies commit to manufacturing their wares in the US, “there will be no charge.”Apple reported a quarterly profit of $23.4 billion in late July, topping forecasts despite facing higher costs due to Trump’s sweeping levies.The tariffs are essentially a tax paid by companies importing goods to the United States. This means Apple is on the hook for tariffs on iPhones and other products or components it brings into the country from abroad.

Mexican authorities accuse Adidas of cultural appropriation

Officials in the southern Mexico state of Oaxaca accused sportswear giant Adidas of cultural appropriation after the fashion brand debuted sandals similar to a traditional design from the region.The Oaxaca Slip-On sandals were created by American fashion designer Willy Chavarria, who has Mexican heritage, but drew pushback from both state and local officials in Oaxaca, which has one of the highest Indigenous populations in the country.Oaxaca Governor Salomon Jara first addressed the issue during a press conference on Tuesday, saying the sandals were a “reinterpreted huarache model,” particularly one that was uniquely found in the state.In another instance, Isaias Carranza, a Oaxacan legislator of Indigenous Zapotec descent, wrote on his Facebook account: “The Adidas company, in conjunction with designer Willy Chavarria, appropriated a unique design of the traditional huaraches (sandals) from the people of the Hidalgo Yalalag village.”Jara also threatened to take legal action against Chavarria.”This huarache is from Yalalag…we are also going to ask our Yalalag siblings to work with us so we can file a complaint” against the designer, he said at the press conference.For its part, the Ministry of Cultures and Arts of Oaxaca said in a statement that using cultural elements for commercial purposes without the consent of Indigenous peoples was “a violation of our collective rights,” demanding that Adidas stop selling the sandals, publicly acknowledge their origin and begin a process of “dialogue and redress of grievances” with the Yalalag community.The controversy is the latest instance of Mexican officials denouncing major brands or designers using unauthorized Indigenous art or designs from the region, with previous complaints raised about Chinese fast fashion company Shein, Spanish mega-brand Zara and high fashion house Carolina Herrera.Adidas did not immediately respond to a request for comment.

Trump’s ‘dividend’ promise for Americans leaves open questions

If Donald Trump is to be believed, millions of Americans could receive a financial slice of the fortunes generated by the US president’s sweeping tariffs.But the eyebrow-raising suggestion from a leader with a flair for creating headlines is largely opaque — with key questions left open about how the giveaway would be funded. Trump himself has acknowledged the difficulty in splashing cash at a time when the United States faces crushing debt.”We have so much money coming in, we are thinking about a little rebate,” Trump said last month, “but the big thing we want to do is pay down debt.”He has since referred to the so-called rebate as a “dividend,” and said it could be for “people that would be middle income people and lower income people.”His idea has, naturally, roused interest. Republican Senator Josh Hawley introduced a bill in July that would see $600 checks sent to each adult and dependent child in American families.Trump has a track record in dishing out money — or at least taking the credit for it.During the Covid pandemic, he insisted that his name be put on government checks distributed to tens of millions of Americans as financial support. – Looming questions -Trump’s latest plan raises a key question: How will it be financed?The United States faces a national deficit that worsened from October to June compared to the same period a year earlier. That was despite a rise in revenue generated by tariffs that Trump has slapped on dozens of US trading partners. Handing out cash to Americans would add to the deficit and increase the country’s debt, which was at more than $36.8 trillion by early August.Trump, when explaining his dividend idea, has claimed the United States is raking in trillions of dollars from other countries thanks to his protectionist agenda. The Republican has also cited large investments promised by Japan and the European Union — deals that coincided with agreements on US tariffs. But foreign leaders paint a different picture. Japan, for example, has stated that its $550 billion pledge will largely be in the form of loans and guarantees — certainly not just hard cash. And Trump’s claims about the revenue generated by tariffs can also be misleading. The president claims — wrongly — that tariffs are paid by foreign countries to the US government. Yet, in reality, it is importers in the United States that are on the hook.Most economists note that American consumers therefore end up paying more as businesses, facing rising costs, raise prices on their products. 

Sudan says army destroys Emirati aircraft, killing 40 mercenariesThu, 07 Aug 2025 01:28:33 GMT

Sudan’s air force has destroyed an Emirati aircraft carrying Colombian mercenaries as it landed at a paramilitary-controlled airport in Darfur, killing at least 40 people, the army-aligned state TV said Wednesday.A military source, speaking to AFP on condition of anonymity, said the UAE plane “was bombed and completely destroyed” at Darfur’s Nyala airport.The airport has …

Sudan says army destroys Emirati aircraft, killing 40 mercenariesThu, 07 Aug 2025 01:28:33 GMT Read More »