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Wall Street stocks finished little changed Wednesday after the Federal Reserve kept interest rates unchanged, while the dollar rebounded somewhat from the prior session’s slide.The Fed, as expected, voted to maintain rates at a range between 3.50 percent and 3.75 percent. Fed Chair Jerome Powell said the status-quo move made sense as the central bank monitors economic data after cutting three straight times due to signs of a weakening labor market.Major US indices, which were directionless prior to the 1900 GMT Fed announcement, moved in a choppy fashion after the decision.The S&P 500 finished nearly flat at 6,978.03 after earlier touching above 7,000 points for the first time.The market had “almost zero reaction” to the Fed, said Art Hogan of B. Riley Wealth Management”The statement and the press conference really delivered no news,” Hogan said Wednesday afternoon shortly before earnings announcements from Microsoft and other large companies.The dollar recovered some of its losses from the prior session, when comments from US President Donald Trump seeming to greet a weaker US currency, sending the dollar to a four and a half year low against the euro.But the strengthening euro was among the factors that dragged on European stocks.Also weighing on Europe was a downgrade to the German government’s 2026 growth forecast to one percent from 1.3 percent previously.”The expected stimulus from economic and fiscal policy measures did not materialize quite as quickly or to the extent that we had assumed,” Economy Minister Katherina Reiche told a Berlin press conference.The CAC 40 in Paris was dragged down by renewed concerns for the luxury sector after market heavyweight LVMH posted a 13 percent slide in annual profit.LVMH shares tumbled nearly seven percent in response, while British fashion label Burberry, traded in London, fell 4.7 percent.Elsewhere, the price of gold struck a new peak as skittishness over the dollar pushes some investors towards the metal as a safe-haven investment.US retail giant Amazon slid 0.6 percent after announcing that it is cutting 16,000 jobs worldwide as the company tries to streamline amid its major push into AI.But shares in Dutch tech giant ASML, the global leader in the machines that make semiconductors, jumped after the company announced a strong rise in annual profits and a buoyant outlook, while also saying it would cut hundreds of management jobs.- Key figures at around 2130 GMT -New York – Dow: FLAT at 49,015.60 (close)New York – S&P 500: FLAT at 6,978.03 (close)New York – NASDAQ Composite: UP 0.2 percent at 23,857.45 (close)London – FTSE 100: DOWN 0.5 percent at 10,154.43 (close)Paris – CAC 40: DOWN 1.1 percent at 8,066.68 (close)Frankfurt – DAX: DOWN 0.3 percent at 24,822.79 (close)Tokyo – Nikkei 225: UP 0.1 percent at 53,358.71 (close)Hong Kong – Hang Seng Index: UP 2.6 percent at 27,826.91 (close)Shanghai – Composite: UP 0.3 percent at 4,151.24 (close)Euro/dollar: DOWN at $1.1944 from $1.2041Pound/dollar: DOWN at $1.3797 from $1.3849Dollar/yen: UP at 153.38 yen from 152.21 yen on TuesdayEuro/pound: DOWN at 86.56 pence from 86.94 penceBrent North Sea Crude: UP 1.2 percent at $68.40 per barrelWest Texas Intermediate: UP 1.3 percent at $63.21 per barrelburs-jmb/jgc

US online retail and cloud computing giant Amazon said Wednesday it will cut 16,000 jobs worldwide as the company tries to streamline amid its major push into AI.The job cuts, which follow already flagged plans to trim its workforce by 14,000 posts, were aimed at “reducing layers, increasing ownership, and removing bureaucracy,” senior vice president Beth Galetti said in a statement.Media reports from October had said the roughly 30,000 job cuts planned in total would comprise nearly 10 percent of the 350,000 office jobs at Amazon. They would not affect the distribution and warehouse workers that make up the bulk of the company’s 1.5 million employees.Amazon did not give any breakdown of the latest cuts or specify which divisions would be affected, saying only that “every team will continue to evaluate the ownership, speed, and capacity to invent for customers, and make adjustments as appropriate.”The company will release its full-year 2025 results on February 5. In its last quarterly earnings statement in October, the company said it spent $1.8 billion on severance costs tied to planned job cuts.Amazon said new positions will be offered to employees where possible.The layoffs are in line with a trend in big tech to trim white-collar management jobs. Microsoft in July said it had slashed a little less than four percent of its global workforce, about 15,000 jobs.CEO Andy Jassy said in October, after the first round of layoffs, that the cuts were not related to budget or AI investments. “Really, it’s culture,” he said, decrying too many layers of management.Facebook owner Meta has also cut jobs over the past year, in a move intended to remove organizational bloat following aggressive hiring during the pandemic.Dutch tech giant ASML on Wednesday said it would cut hundreds of management jobs to improve internal organization, with HP and Oracle also announcing recent layoffs.Like other tech giants, Amazon is making massive investments to grab a slice of the AI revolution pie.It is particularly banking on the performance of its subsidiary Amazon Web Services (AWS), the world’s leading cloud provider, which is engaged in a race against its fast-growing rivals, Microsoft Azure and Google Cloud.Spending on developing new AI-based chips and services is growing exponentially. In December, Amazon announced it would invest more than $35 billion in India.

The dollar enjoyed a respite Wednesday after this week’s steep drop as traders awaited the US Federal Reserve’s take on interest rates, while gold reached another record high thanks to investors seeking safety amid an uncertain economic outlook.European stock markets came under pressure as the relative strength in the euro and sterling against the dollar weighed on the earnings potential of the continent’s multinationals. “A strong currency is unhelpful as it raises the cost of sales and buyers look elsewhere,” said David Morrison, senior market analyst at FCA.But a rise in US equity markets helped lift European stocks off their worst levels.The dollar had seen a sharp sell-off Tuesday after US President Donald Trump’s suggestion that he was happy with the currency’s recent decline, which saw it fall to a four-year low against the euro.The greenback’s retreat followed reports that the New York Federal Reserve had checked in with traders about the yen’s exchange rate, fuelling talk of joint US and Japanese intervention to prop up the yen. – ‘Dollar’s doing great’ -That led to speculation the White House was prepared to let the dollar weaken, and Trump did little to dismiss that when asked Tuesday if he was worried about the decline.Win Thin, at Bank of Nassau 1982 Ltd, said: “Foreign exchange typically is the leader in terms of showing market discomfort with a country’s policies and economic outlook.”But a weak dollar could be a boon for US equities.”The S&P 500 briefly cleared 7,000 for the first time, emboldened by hopes that a weakening dollar and interest rates will produce a potent cocktail to supercharge earnings in the months to come,” said market analyst Chris Beauchamp at trading platform IG.The price of gold also struck a new peak as the dollar’s low level supported demand for the save-haven investment.But investors generally took a cautious approach ahead of the Fed’s latest policy meeting, hoping for guidance on its plans for interest rates amid uncertainty over Trump’s latest tariff threats.The US central bank is widely expected to keep rates on hold for the coming months. But a durably weaker dollar could fan inflation in the world’s largest economy, lessening the chances of lower rates even later this year. US consumer confidence has plunged to its lowest level since 2014, a survey showed, as households fret about sticky inflation.Retail giant Amazon’s announcement that it is cutting 16,000 jobs added to the sense that — outside the seemingly bullet-proof tech sector — all is not well in the US economy.The company’s shares were down 1.0 percent in early afternoon trading.- ‘AI boom in full swing’ -In Europe, the CAC 40 in Paris was dragged down by renewed concerns for the luxury sector after market heavyweight LVMH posted a 13 percent slide in annual profit.LVMH shares tumbled nearly seven percent in response, while British fashion label Burberry, traded in London, fell 4.7 percent.Shares in Dutch tech giant ASML, the global leader in the machines that make semiconductors, jumped after the company announced a strong rise in annual profits and a buoyant outlook, while also saying it would cut hundreds of management jobs.”ASML’s latest results suggest the AI boom is still in full swing, with strong orders and a bullish outlook,” said Russ Mould, investment director at traders AJ Bell. “However, job cuts in the business would suggest it is not getting carried away with the strength of current trading.”The company’s shares finished the day down around 1.5 percent.- Key figures at around 1630 GMT -New York – Dow: UP 0.1 percent at 49,067.27 pointsNew York – S&P 500: UP less than 0.1 percent at 6,982.76 New York – NASDAQ Composite: UP 0.1 percent at 23,846.30London – FTSE 100: DOWN 0.5 percent at 10,154.43 (close)Paris – CAC 40: DOWN 1.1 percent at 8,066.68 (close)Frankfurt – DAX: DOWN 0.3 percent at 24,822.79 (close)Tokyo – Nikkei 225: UP 0.1 percent at 53,358.71 (close)Hong Kong – Hang Seng Index: UP 2.6 percent at 27,826.91 (close)Shanghai – Composite: UP 0.3 percent at 4,151.24 (close)Euro/dollar: DOWN at $1.1932 from $1.2035Pound/dollar: DOWN at $1.3774 from $1.3833Dollar/yen: UP at 153.71 yen from 152.32 yen on TuesdayEuro/pound: DOWN at 86.61 pence from 86.98 penceBrent North Sea Crude: UP 0.7 percent at $67.07 per barrelWest Texas Intermediate: UP 0.9 percent at $62.97 per barrelburs/rl/js

The dollar recovered slightly on Wednesday as traders awaited the US Federal Reserve’s outlook on interest rates, while gold reached another record high as investors seek safety amid an uncertain economic outlook on several fronts.European stocks were mainly lower ahead of the New York open, with Amazon saying it planned to cut a further 16,000 jobs worldwide — having already announced 14,000 cuts last October.The dollar had seen a sell-off Tuesday fuelled by US President Donald Trump’s suggestion that he was happy with the currency’s recent decline, which saw it fall to a four-year low of $1.20 against the euro.The greenback has retreated across the board following reports that the New York Federal Reserve had checked in with traders about the yen’s exchange rate, fuelling talk of a joint US and Japanese intervention to prop up the yen. That led to speculation the White House was prepared to let the dollar weaken, and Trump did little to dismiss that when asked Tuesday if he was worried about the decline.”No, I think it’s great,” he told reporters as the currency fell to a two-and-half-month low against the yen. “Look at the business we’re doing. The dollar’s doing great,” he said.Win Thin, at Bank of Nassau 1982 Ltd, said: “Foreign exchange typically is the leader in terms of showing market discomfort with a country’s policies and economic outlook.”Elsewhere, the price of gold struck a new peak at $5,278.30 a troy ounce (31.1 grams) as the dollar’s drop continued to support demand for the save-haven investment.Investors also took a cautious approach ahead of the Fed’s latest policy meeting, hoping for guidance on its plans for interest rates amid uncertainty over Trump’s latest tariff threats.The US central bank is widely expected to freeze rates for the coming months, but a weakening dollar could fan inflation in the world’s largest economy, clouding the possibility of lower rates later this year. US consumer confidence has plunged to its lowest level since 2014, a survey showed, as households fret about sticky inflation.In Europe, the CAC 40 in Paris was dragged down by renewed concerns for the luxury sector after market heavyweight LVMH posted a 13 percent slide in annual profit, to 10.9 billion euros ($13.1 billion).LVMH shares tumbled 6.5 percent, while in London the British fashion label Burberry lost 2.6 percent.On the upside, shares in Dutch tech giant ASML, which makes machines for semiconductors, jumped six percent after announcing a strong rise in annual profits and a buoyant outlook, while also saying it would cut hundreds of management jobs.”ASML’s latest results suggest the AI boom is still in full swing, with strong orders and a bullish outlook,” said Russ Mould, investment director at traders AJ Bell. “However, job cuts in the business would suggest it is not getting carried away with the strength of current trading.”- Key figures at around 1130 GMT -London – FTSE 100: DOWN 0.5 percent at 10,160.61 pointsParis – CAC 40: DOWN 0.9 percent at 8,083.14Frankfurt – DAX: DOWN 0.2 percent at 24,852.64Tokyo – Nikkei 225: UP 0.1 percent at 53,358.71 (close)Hong Kong – Hang Seng Index: UP 2.6 percent at 27,826.91 (close)Shanghai – Composite: UP 0.3 percent at 4,151.24 (close)New York – Dow: DOWN 0.8 percent at 49,003.41 (close)Euro/dollar: DOWN at $1.1973 from $1.2035Pound/dollar: DOWN at $1.3774 from $1.3833Dollar/yen: UP at 152.67 yen from 152.32 yen on TuesdayEuro/pound: DOWN at 86.90 pence from 86.98 penceBrent North Sea Crude: DOWN 0.2 percent at $67.42 per barrelWest Texas Intermediate: DOWN 0.1 percent at $62.35 per barrelburs-bcp/ajb/js

Dutch tech giant ASML, which sells cutting-edge machines to make semiconductor chips, reported a significant gain in annual net profit Wednesday but said it would cut hundreds of management jobs to improve internal organisation.Shares in the firm soared more than seven percent at the opening bell as it forecast another record sales year in 2026 driven by insatiable demand for artificial intelligence.ASML is a critical cog in the global economy, as the semiconductors crafted with its tools power everything from smartphones to missiles.The company, Europe’s biggest tech firm by market value, posted after-tax profit of 9.6 billion euros ($11.5 billion) for last year, up from 7.6 billion euros in 2024.CEO Christophe Fouquet said ASML customers were bullish on the medium-term outlook “primarily based on more robust expectations of the sustainability of AI-related demand”.Fourth-quarter net bookings, the figure traders track most closely, came in at 13.2 billion euros, a sharp rise from the 5.4 billion euros in orders booked in the previous quarter.Total 2025 net sales were a record 32.7 billion euros. The firm had previously said it did not expect sales to be below the 28.3 billion euros banked last year.”ASML just delivered a thumping set of numbers, with new orders blowing past expectations and pointing to a market gearing up for the next leg of growth,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown.The company expects net sales this year to reach 34 billion to 39 billion euros, it announced in new forecasts, with first-quarter sales hitting 8.2 billion to 8.9 billion euros.”We expect 2026 to be another growth year for ASML’s business,” Fouquet said.Separately, ASML announced an organisational shake-up aimed at speeding up working methods that Fouquet said had become “less agile”.The firm expects to cut around 1,700 jobs in the Netherlands and the United States, mostly from leadership roles, Fouquet said.”As with any company that grows rapidly, however, we need to be mindful that the way we have grown does not slow us down,” he said.ASML employs around 44,000 staff worldwide.Fouquet told reporters it was “probably the most difficult decision the management team ever had to make.”But given the firm’s positive financial outlook, he added: “We are not doing that… because we are in trouble or because we need to save money.”- US-China tech war -ASML is 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.Beijing has been infuriated by the export curbs, calling them “technological terrorism”.In a case unrelated to ASML, the Dutch government briefly seized control of Nexperia, a Chinese-owned company that makes low-tech semiconductors.That move sparked a major row between Beijing and the West that threatened to cripple car manufacturers that rely on Nexperia chips.In late October, following trade talks between China’s President Xi Jinping and his US counterpart Donald Trump, Beijing agreed to resume exports of some Nexperia chips halted over the row.ASML had already warned when presenting third-quarter results that China sales would “decline significantly” this year compared with “very strong business” in 2024 and 2025.A breakdown of sales showed 33 percent of sales going to China last year, compared to 41 percent in 2024. China was ASML’s top customer in both years.Chief Financial Officer Roger Dassen said “we expect that decline to continue”, predicting a share of 20 percent from China this year.”It’s not falling off a cliff, it’s more of a normalisation than anything else,” Dassen told reporters.Longer-term, ASML believes that the rapidly expanding AI market will push up its annual sales to between 44 billion and 60 billion euros by 2030. 

South Korean chip giant SK hynix said on Wednesday its operating profit doubled last year to a record high after a surge in global demand for technology powering artificial intelligence.SK hynix and rival Samsung are among the world’s leading producers of memory chips, supplying high‑performance components that are essential for AI products and the data centres powering the fast‑evolving sector.It said in a statement that “2025 marked a year in which the company once again demonstrated its world-class technological leadership”.The firm said its operating profit soared 101 percent to 47.2 trillion won ($33 billion) last year.Net profit came to 42.9 trillion won last year, up 117 percent from 2024. Sales for 2025 stood at 97.1 trillion won, up 47 percent from the previous year.The AI boom has pushed up prices and shipments of conventional NAND and DRAM memory semiconductors, while demand for high‑bandwidth memory (HBM) chips, used in AI servers, has soared.That has helped SK hynix’s shares surge around 220 percent over the past six months.Fourth-quarter net profit came to 15.24 trillion won, a 90.4 percent year-on-year increase.SK hynix “plans to further strengthen its proven quality, technological leadership and mass-production capabilities”, by “stably supplying both HBM3E and HBM4” chips.The company also said it plans to set up an “AI solutions firm” in the United States, committing $10 billion, and is weighing investments in innovative US companies.- AI power -TrendForce memory analyst Ellie Wang said HBM chips were essential for advanced processors used in AI systems.”For Samsung and SK hynix, while AI has driven a meaningful increase in memory demand, the technical barriers for HBM have also risen,” she told AFP. “How capacity is allocated across different products has become an increasingly critical issue” for the companies, she said, adding that current memory chip “supply tightness is partly due to suppliers concentrating production lines on HBM”.The huge demand for memory chips in AI systems has caused a shortage for those used in consumer electronics — threatening higher prices for phones, laptops and other devices. “As HBM’s share of total production continues to rise, supply shortages are difficult to alleviate,” Wang said. TrendForce predicts that memory chip industry revenue will surge to a global peak of more than $840 billion in 2027.South Korea has said it will triple spending on artificial intelligence this year, aiming to join the United States and China as one of the top three AI powers. 

The dollar struggled to bounce back Wednesday following another selloff fuelled by Donald Trump’s suggestion he was happy with the currency’s recent decline, while tech firms helped most Asian equity markets extend their rally.Traders are also keeping an eye on the Federal Reserve’s latest meeting, hoping for some guidance on its plans for interest rates amid uncertainty over the US president’s policies following his latest tariff threats.The greenback has retreated across the board this week following reports that the New York Fed had checked in with traders about the yen’s exchange rate, which fuelled talk that US and Japanese officials were prepared to stage a joint intervention.That led to speculation the White House was prepared to let the dollar weaken, and Trump did little to dismiss that when asked Tuesday if he was worried about the decline.”No, I think it’s great,” he told reporters in Iowa as the unit hit its weakest level against the euro in four-and-a-half years and a two-and-half-month low against the yen. “Look at the business we’re doing. The dollar’s doing great.”He added: “I want it to be — just seek its own level, which is the fair thing to do.”The dollar also sank against the pound, South Korean won and Chinese yuan, with a slight bump Wednesday doing little to recover its latest losses.Observers said unease about Trump’s latest tariff outbursts, including threats against European nations over their opposition to his Greenland grab and a warning to Canada over its trade talks with China, have also dented faith in US assets and weighed on the unit.Meanwhile, US consumer confidence plunged to its lowest level since 2014, a survey showed, as households fret about inflation and the elevated cost of living.Win Thin, at Bank of Nassau 1982 Ltd, said: “Foreign exchange typically is the leader in terms of showing market discomfort with a country’s policies and economic outlook, so this dollar weakness bears watching.”Still, equity markets performed well in Asia after the S&P 500 clocked another record high in New York thanks to a surge in tech titans including Apple, Microsoft and Amazon.That helped Seoul to be among the best performers again — hitting another all-time peak — as chipmakers Samsung and SK hynix rallied.There were also big gains in Tokyo, Hong Kong, Shanghai, Taipei, Manila, Mumbai and Bangkok.London and Frankfurt were flat at the open, while Paris fell.Jakarta plunged more than eight percent — its heftiest fall in more than nine months — after index compiler MSCI called on regulators to look into ownership concerns and said it would hold off adding Indonesian stocks to its indexes or increasing their weighting.The plunge saw market heavyweights including PT Bumi Resources and PT Petrosea lose around 15 percent.MSCI said “investors highlighted that fundamental investability issues persist due to ongoing opacity in shareholding structures and concerns about possible coordinated trading behaviour that undermines proper price formation”.Sydney, Singapore and Wellington dipped.Traders are keeping a close watch on earnings this week from some of Wall Street’s Magnificent Seven, with Microsoft, Meta, Tesla and Apple all reporting.”These results will provide critical insights into the trajectory of the artificial intelligence trade,” wrote Tony Sycamore, market analyst at IG.”After losing momentum in the final months of 2025 due to growing scrutiny over return on investment, capital expenditure and real-world constraints, the market is eager to see if the AI narrative can regain traction in 2026.”Forward guidance will be key, alongside scrutiny of margins and capex projections.”In company news, tech investment titan SoftBank jumped almost six percent after the Wall Street Journal reported it was in talks to pump an additional $30 billion into ChatGPT developer OpenAI.That comes after it invested $22.5 billion last month for an 11 percent stake.- Key figures at around 0815 GMT -Tokyo – Nikkei 225: UP 0.1 percent at 53,358.71 (close)Hong Kong – Hang Seng Index: UP 2.6 percent at 27,826.91 (close)Shanghai – Composite: UP 0.3 percent at 4,151.24 (close)London – FTSE 100: FLAT at 10,206.88Dollar/yen: UP at 152.66 yen from 152.32 yen on TuesdayEuro/dollar: DOWN at $1.1988 from $1.2035Pound/dollar: DOWN at $1.3796 from $1.3833Euro/pound: DOWN at 86.91 pence from 86.98 penceWest Texas Intermediate: UP 0.1 percent at $62.43 per barrelBrent North Sea Crude: DOWN 0.1 percent at $67.50 per barrelNew York – Dow: DOWN 0.8 percent at 49,003.41 (close)

Ahead of a snap election in Japan, Prime Minister Sanae Takaichi has pledged to scrap a tax on food, but a lack of clear funding is unnerving markets and voters. As she announced the dissolution of parliament last week ahead of a February 8 vote, the ultra-conservative leader promised to exempt food products from an eight percent consumption tax for two years in response to soaring living costs. It’s a measure also strongly supported by opposition parties.But her comments immediately rattled the bond market, worried by the prospect of fiscal slippage, with yields on 30- and 40-year Japanese bonds jumping to record highs. That evoked fears of a repeat of the turmoil seen in Britain in 2022 when Prime Minister Liz Truss unveiled massive unfunded tax cuts that triggered a sharp spike in bond yields — eventually leading to her resignation. Takaichi is far from that point: markets calmed in the following days, and Japan’s modest budget deficit allows it to absorb shocks. “Japan is able to secure financing without relying on foreign money” thanks to its vast domestic savings, said Hideo Kumano, an economist at Dai-ichi Life. And unlike the UK at the time, it posts a sizeable current account surplus, he told AFP. Takaichi has repeatedly said Japan will post a primary budget surplus, which excludes the cost of servicing debts, for the first time in 28 years. A “Truss shock” is only one risk scenario, Kumano said, although the underlying danger “has been rising”.-‘Fiscal sustainability’-The tax break is expected to cost around 5 trillion yen ($32.8 billion) per year, but Takaichi has outlined no funding source or offsetting measures. Markets were already anxious over a colossal $135 billion stimulus package adopted at the end of 2025.That aims to support households through energy subsidies, even at the risk of inflating Japan’s gargantuan national debt, which is expected to exceed 230 percent of GDP in the fiscal year 2025-26.Under pressure, Takaichi defended her measure on Monday, saying she wanted to set up a public committee to discuss the issue, insisting she was paying “considerable attention to fiscal sustainability”.But a bigger majority in parliament could give her coalition free rein for expansionary fiscal policy. In the event of a landslide victory, UBS experts warned that Takaichi’s policies could even exceed market expectations and that renewed anxiety could push bond yields back up.  In that case, “Takaichi may be forced to offset some of the expansionary fiscal measures announced recently with tightening elsewhere”, noted Marcel Thieliant, an economist at Capital Economics. The government could also opt to issue shorter-maturity debt, and, as a last resort, the Bank of Japan (BoJ) “could step up its bond purchases yet again”, he added. But it’s complicated. Any intervention in the bond market risks triggering a depreciation of the yen, making imports more expensive and putting further upward pressure on inflation.The foreign exchange market is already jittery. The yen has come under pressure amid renewed concerns over fiscal discipline, before it rebounded amid rumours of a possible joint Japan–US monetary intervention to boost its value. – ‘Election tactic’? -It’s unclear whether the tax break is even a vote-winner, although inflation is a top concern among voters.Consumer prices, excluding fresh food, rose 2.4 percent year-on-year in December.According to a poll published Monday by the Nikkei newspaper, 56 percent of those surveyed believe the promised tax exemption would not be effective against rising prices. “You can’t help wondering whether it’s just an election tactic,” Kanamu Kashima, a 23-year-old student, told AFP. The BoJ itself has slightly raised its inflation forecasts through 2027, pointing to pressure from labour shortages in the ageing country. That might lead to an increase in long-term yields, which adjust to these expectations. In the short term, Dai-ichi Life’s Kumano warned that structural reforms are being sidestepped. “A question must be asked about the real nature of the tax cut and… if it alone would do the job (of restoring the economy),” he said.”These policies are rather short-sighted.”

Presiding over the signing of a major trade deal alongside Indian Prime Minister Narendra Modi on Tuesday, EU chief Ursula von der Leyen broke into a large smile.A diplomatic and economic coup, the EU-India pact comes as a welcome piece of good news for Brussels after a tumultuous few weeks dominated by US threats over Greenland.Addressing a press conference in New Delhi, von der Leyen described it as a tale of “two giants who choose partnership” and “the best answer to global challenges”.In spite of its eye-tickling pollution, the Indian capital must have felt like a breath of fresh air for von der Leyen and European Council president Antonio Costa, who co-led the EU delegation.As they flew away from Brussels over the weekend, the pair left behind a just-defused crisis in transatlantic relations and internal squabbling over another trade deal with South American nations.In New Delhi, authorities rolled out the red carpet for the pair, who were feted as guests of honour at India’s Republic Day parade.Posters emblazoned with their faces adorned lampposts across the city.Costa, whose family hails from Goa, proudly flashed his Indian identity card at a press conference where Modi celebrated him as “the Gandhi of Lisbon”.Meanwhile local media praised von der Leyen’s burgundy and gold brocade outfit — a nod to Indian fashion.It was a far cry from the scorn and threats reserved for Europe by its traditional ally the United States at the World Economic Forum in Davos last week.European officials had been hoping to make progress on Ukraine at the Swiss ski resort — a goal drowned out by US President Donald Trump’s push to wrest control of Greenland from EU member Denmark.- ‘Difficult job’ -Trump made an about-turn after talks with NATO chief Mark Rutte — a change of heart EU officials were keen to credit to Europe’s firm response — and the climbdown took the sting out of an emergency summit called on the Greenland issue.One year into Trump’s second term, Costa said the European Union has “learned how to manage” the ups and downs, and not to “react to each message”.”We need to keep calm and continue to have a polite, respectful relationship,” the council chief told AFP. “At the same time, we need to diversify our relationships”.But few in Europe believe the Greenland crisis was a one-off bump in the road, with the unpredictable US leader at the helm.Maros Sefcovic, the EU’s trade chief, told AFP he scours through newspaper headlines each morning in anticipation of “what else might happen”.”It’s indeed a difficult job,” he quipped.Yet he said the same was true for most other countries, which in turn found renewed appeal in what Europe has to offer: partnership, predictability and stability.India, for one, was left bruised by tariffs slapped on it by the White House over its purchase of Russian oil as New Delhi and Washington were negotiating a — so-far-elusive — trade deal.”The last year has turbocharged the European trade policy,” Sefcovic said.Pushing to reduce its dependencies on the United States and China and lower the cost of US tariffs, the EU was negotiating or looking to open talks with an array of nations including the Philippines, Malaysia, the United Arab Emirates and Australia, he said.- ‘New opportunities’ -By cutting or eliminating tariffs on almost 97 percent of European exports, the deal struck in New Delhi will help ease access to India’s 1.4-billion-people-strong market for cars, wine, pasta and other EU products.But the signing also allowed Brussels to turn the page after a just-sealed pact with South American bloc Mercosur was cast into limbo by a legal challenge in the European parliament.That setback added to rancorous divisions among member states over the deal’s impact on European farmers, who remained deaf to the EU’s arguments and staged months of tractor-mounted protests against the accord.European officials hope the new India deal will also help bring the South Asian giant diplomatically closer to Europe.Neutral on Ukraine, New Delhi has relied on Moscow for key military hardware for decades, but has tried to cut its dependence by diversifying imports and pushing its own domestic manufacturing base.Modi said a security partnership struck alongside the trade deal would provide “new opportunities” for defence companies.While denying a pivot away from Russia, foreign secretary Vikram Misri said India was interested in hosting the joint production of European military kit.Monday’s Republic Day parade featured Russian helicopters and planes, alongside dancers and motorcycle daredevils.But, in perhaps a hint of things to come, it ended with a squad of French-made Rafale fighter jets zooming overhead.

Global stocks were mixed Tuesday ahead of a Federal Reserve interest rate decision and earnings from US tech giants while the dollar hit a four and a half year low against the euro.Major US indices moved in opposite directions, with gains by Apple, Amazon and other tech giants helping to lift the S&P 500 to a record, while the Dow retreated.Consumer confidence in the United States plunged to its lowest level since 2014, survey data showed, as American households continue to fret about inflation and elevated costs of living.But markets continued to express near certainty that the Fed on Wednesday will keep interest rates unchanged as officials gauge the health of the job market after three straight interest cuts at earlier meetings.”The outcome is all but a foregone conclusion,” said a JPMorgan research note.”Fed officials across the spectrum have indicated that after three 25-basis-point ‘risk management’ rate cuts, now is a good time to pause and take stock of developments,” JPMorgan analysts added.However, traders expect the Fed to cut interest rates next in June or July.While tech shares mostly rose, US health insurance stocks plunged after an announcement of a lower than expected pay increase related to a leading US government Medicare program. UnitedHealth Group plunged by around 20 percent, the biggest loser in the Dow.European equity markets ended the day mostly higher, with Frankfurt slipping lower.But the euro piled on more than one percent against the dollar, climbing to above $1.20 for the first time since 2021.Factors in the dollar’s latest slide include talk of a joint intervention between US and Japanese authorities to support the yen and the rising chance of a US government shutdown. Lawmakers in Washington are engaged in a budget fight on whether to keep funding the White House’s immigration crackdown after a second American was killed by federal authorities in Minnesota.The already weakened dollar fell again Tuesday afternoon after Trump seemed to welcome the weakening of the US currency, saying that the greenback was “doing great.”Earlier Tuesday, Asian stocks brushed off South Korea-US tariff concerns, instead focusing on “hopes of strong earnings from the US tech heavyweights in the next couple of days”, said Richard Hunter, head of markets at Interactive investor.Shares in German sportswear brand Puma climbed strongly in Frankfurt, with Chinese athletic goods giant Anta Sports set to purchase a leading stake in the company.But although posting a rise of 9.5 percent, Puma’s share price, at 23.71 euros, was quoted far below the 35 euros per share that Anta is paying Artemis, the holding firm of France’s Pinault family, for its 29-percent stake.This, analysts said, reflects investor caution about the group’s chances of turning its fortunes around, after seeing its market capitalization plunge by about a third over the past year.- Key figures at around 2130 GMT -New York – Dow: DOWN 0.8 percent at 49,003.41 (close)New York – S&P 500: UP 0.4 percent at 6,978.60 (close)New York – Nasdaq Composite: UP 0.9 percent at 23817.10 (close)London – FTSE 100: UP 0.6 percent at 10,207.80 (close)Paris – CAC 40: UP 0.3 percent at 8,152.82 (close)Frankfurt – DAX: DOWN 0.2 percent at 24,894.44 (close)Tokyo – Nikkei 225: UP 0.9 percent at 53,333.54 (close)Hong Kong – Hang Seng Index: UP 1.4 percent at 27,126.95 (close)Shanghai – Composite: UP 0.2 percent at 4,139.90 (close)Euro/dollar: UP at $1.2035 from $1.1880Dollar/yen: DOWN at 152.32 yen from 154.18 yen on MondayPound/dollar: UP at $1.3833 from $1.3680Euro/pound: UP at 86.98 pence from 86.84 penceBrent North Sea Crude: UP 3.0 percent at $67.57 per barrelWest Texas Intermediate: UP 2.9 percent at $62.39 per barrelburs-jmb/dw