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Asian stocks were mixed Monday after Donald Trump thrust his trade war back into the spotlight by threatening the European Union with huge tariffs before extending a deadline for their implementation.Just as markets were showing signs of settling following their bond-fuelled selloff last week, the US president hurled his latest grenade across the pond by levelling 50 levies at the bloc from June 1, saying talks were “going nowhere”.He also said he would hit smartphone makers with 25 percent tolls if they did not make their handsets in the United States.Wall Street’s three main indexes and most European markets dumped into the red Friday.However, Asia got a reprieve after Trump said Sunday that he would delay the EU tariffs until July 9 following a “very nice call” with its boss Ursula von der Leyen, adding that officials will “rapidly get together and see if we can work something out”.Tokyo, Shanghai and Seoul rose, but Hong Kong, Sydney, Singapore, Wellington, Taipei, Manila and Jakarta fell.The dollar remained under pressure after dropping Friday.Analysts said the latest unexpected salvos from the White House highlighted the uncertain path investors are having to walk owing to the president’s volatile policy pivots.They have also warned that his bill to extend tax cuts and slash spending could balloon the national deficit by trillions of dollars, putting upward pressure on Treasury yields and sparking warnings about the world’s biggest economy.”The consensus view was always that the 50 percent tariffs wouldn’t hold for long anyhow and would have most likely been reduced towards 20 percent shortly after 1 June,” said Christ Weston at Pepperstone.”But this action (Sunday) simply highlights that while tariffs will be helpful in keeping the US  deficit in check, they are also a primary negotiation tool, where the initial gambit has been swiftly reduced.”- Fed minutes -Ray Attrill at National Australia Bank added: “In what is an otherwise quiet week on the scheduled global data and events calendar… trade discussion look set to dominate the market landscape this week.”Investors are also looking ahead to the release of minutes from the Federal Reserve’s policy meeting this month, hoping for an idea about decision-makers’ views on the economy in light of the tariff war.That is followed by its preferred measure of inflation — US personal consumption expenditures — which will be unveiled Friday.The bank showed a shift in tone in its post-meeting statement “with uncertainty about the economic outlook increasing further, stating that the risks of higher unemployment and inflation have both risen”, said Michael Hewson, of MCH Market Insights.”This is a problem for the Fed’s dual mandate given that these two items could move in the same direction when any policy response may well hinder one over the other.”He added: “The biggest concern is likely to be the sharp drop in US consumer confidence levels in the last few months, however… this could quickly reverse if the US government begins to realise that its tendency to pick fights at every turn is doing more harm than good domestically.”In company news, shares in Seoul-listed Samsung rose more than one percent despite Trump’s threat of tariffs on smartphone makers.And in Tokyo, Nippon Steel rallied as much as 7.4 percent after Trump threw his support behind a new “partnership” between the Japanese firm and US Steel.His remarks Friday were the latest in a long saga surrounding Nippon Steel’s $14.9-billion takeover of US Steel first announced in late 2023.He said US Steel’s headquarters would remain in Pittsburgh and that the partnership would create at least 70,000 jobs and add $14 billion to the US economy.However, neither the White House nor the two companies have published details of the new arrangement and many questions remain.US Steel soared 21 percent in New York on Friday.- Key figures at around 0300 GMT -Tokyo – Nikkei 225: UP 0.5 percent at 37,329.22 (break)Hong Kong – Hang Seng Index: DOWN 0.7 percent at 23,447.04Shanghai – Composite: UP 0.1 percent at 3,352.76Euro/dollar: UP at $1.1395 from $1.1369 on FridayPound/dollar: UP at $1.3564 from $1.3535Dollar/yen: DOWN at 142.55 yen from 142.57 yenEuro/pound: UP at 84.00 pence from 83.96 penceWest Texas Intermediate: UP 0.2 percent at $61.66 per barrelBrent North Sea Crude: UP 0.2 percent at $64.91 per barrelNew York – Dow: DOWN 0.6 percent at 41,603.07 (close)London – FTSE 100: DOWN 0.2 percent at 8,717.97 (close)

In India’s sprawling financial hub of Mumbai armies of “dabbawalas” have for decades crisscrossed the city by foot and bicycle, delivering home-cooked food to office workers who are keen to avoid the searing heat and traffic-snarled streets.Now, across the country, young entrepreneurs are taking that tradition to the next level with the explosion of shopping apps that allow customers to get hold of not only food and drink but anything else from clothes to iPhones — within minutes.The so-called quick commerce apps are redefining the retail game, not only disrupting e-commerce titans such as Amazon with their speed and efficiency but also long-established “mom and pop” stores which are no longer convenient enough.At a warehouse managed by online grocer BigBasket in central Mumbai, employees work with military-like precision to pull off deliveries in just 10 minutes.These warehouses are known within the industry as “dark stores”, a reference to being closed off to customers.When a new order is received, a worker leaps into action, darting through aisles filled with everything from fizzy drinks to vegetables, packing a bag of groceries handed to a motorbike rider — the modern-day “dabbawala”, Hindi for “lunchbox man”.Local tech companies have poured in billions to set up these nifty logistical networks across big cities, fuelling India’s rapid shopping industry.  – ‘Unprecedented’ -For millions of customers, it’s an easy way to avoid shopping in the sweltering heat — visiting multiple food stalls — and spending hours navigating the country’s notorious traffic jams. Growth has been “very strong”, BigBasket co-founder Vipul Parekh told AFP, pointing to forecasts that indicate a compounded annual growth rate of more than 60 percent over the next two to three years. “When you talk of a large industry transforming and growing at this pace, that is unprecedented,” he said. Delivery apps such as Getir or Jokr have faltered in Europe and the United States in recent years, as pandemic-induced demand wore off and rising inflation pinched customer wallets.  But sales in India have soared from $100 million in 2020 to an estimated $6 billion in 2024, according to projections by market analysis firm Datum Intelligence.This could hit $40 billion by the end of the decade, according to investment bank JM Financial.    Companies say India’s quick commerce’s growth is partly down to the sheer scale of people living in tight-packed cities within a roughly two kilometre (one mile) radius of a “dark store”, said Parekh.”The revenue potential in that catchment is very high,” he said.A lack of many traditional supermarket grocery chains in India aid the business model, he said. Rinish Ravindra, a regular user, admits that they make him “lazy”, but argues that the convenience is unbeatable. “I just press a bunch of keys and all of it comes delivered to home,” says the 32-year-old, who works in Mumbai’s film industry. Local players have made rapid progress but competition is heating up. Amazon is getting its act together, along with Walmart-owned Flipkart and billionaire Mukesh Ambani’s Reliance Industries as they belatedly roll out rapid delivery offerings.”One of the problems with e-commerce players like Amazon is that, until now, they’ve relied on these big fulfilment centres that sit on the outside or outskirts of cities,” said Satish Meena of Datum Intelligence.”These aren’t suited for rapid delivery, which is why they now need to invest to build their own dark store networks within urban areas.”  – ‘Just order it online’ -However, a more crowded industry threatens the sustainability of the sector that has already seen one prominent start-up go bust.”My sense is that the market is good enough for two to three players,” said Rahul Malhotra of Bernstein, a research firm, adding that the total addressable market may be worth around $50-$60 billion. “Some of the early movers, with hyperlocal capabilities obviously, have an advantage here.”The sector could also face challenges from thousands of small, family-run shops. The Confederation of All India Traders, a leading industry group that claims to represent over 90 million small businesses, has called for “a nationwide movement” against newer platforms. Its president likened quick commerce to being a “modern-day East India Company”, a reference to the rapacious British power that began in the 17th century to seize swathes of India, preceding colonial rule.For now, customers are voting with their wallets.  “When I think of groceries I think, ‘I can just order it online’,” said Ravindra. 

US President Donald Trump on Friday threw his support behind a new “partnership” between US Steel and Japan’s Nippon Steel, sending the American firm’s share price skyrocketing on hopes of an end to the long-running saga over foreign ownership of a key national asset.  While the details of the deal remained unclear, the Pennsylvania-headquartered firm’s share price popped after Trump took to Truth Social to hail the new arrangement, closing up more than 21 percent and then rising further in after-hours trading.”US Steel will REMAIN in America, and keep its Headquarters in the Great City of Pittsburgh,” the US president said in his social media post. He added that the new “planned partnership” between America’s US Steel and Japan’s Nippon Steel would create at least 70,000 jobs and add $14 billion to the US economy. Trump’s remarks are the latest in a long saga which began in December 2023, when US Steel and Nippon Steel announced plans for a $14.9 billion merger. That deal was bitterly opposed by unions in part because it would have transfered ownership of the critical asset to a foreign company. – ‘Massive investment’ -In a statement, Nippon Steel said it “applauds” the bold action taken by Trump, adding it shared the administration’s “commitment to protecting American workers, the American steel industry, and America’s national security.”US Steel praised Trump’s “bold” leadership on the deal, noting that it would “remain American” and expand in size due to the “massive investment” that Nippon would make over the next four years as part of the deal.Neither the White House nor the two companies, have so far published the details of the new partnership.  The United Steelworkers’ union (USW), which represents US Steel employees and has long opposed the deal, said on Friday that it could not “speculate” on the impact of Trump’s announcement without more information about the deal. “Our concern remains that Nippon, a foreign corporation with a long and proven track record of violating our trade laws, will further erode domestic steelmaking capacity and jeopardize thousands of good, union jobs,” USW International President David McCall said in a statement shared with AFP. Nippon’s acquisition of US Steel was originally meant to close by the end of 2024’s third financial quarter, but was then held up by former president Joe Biden, who blocked it in his last weeks in office on national security grounds.The two firms then filed a lawsuit against the Biden administration’s “illegal interference” in the transaction.Trump previously opposed Nippon Steel’s takeover plan, calling for US Steel to remain domestically owned. But he has since softened his tone and has suggested he is open to some form of investment from Nippon.The US president recently ordered his own review of the existing deal, directing the government’s Committee on Foreign Investment in the United States (CFIUS) to look into the proposed acquisition.CFIUS, tasked with analyzing the national security implications of foreign takeovers of US companies, was given 45 days to submit its recommendations to Trump.

US President Donald Trump rekindled his trade war with the European Union on Friday by threatening 50 percent tariffs, as Brussels reacted with a call for “respect.”Trump also unleashed a broadside against smartphone makers including US tech giant Apple, threatening them with new duties of 25 percent if they do not move production to the United States.Stock markets fell as the Republican’s comments fueled fears of global economic disruption, after a relative lull in recent days after Trump reached deals with China and Britain.Trump first raised the issue of EU tariffs in an early morning post on his Truth Social network. “Our discussions with them are going nowhere!” Trump said. “Therefore, I am recommending a straight 50 percent Tariff on the European Union, starting on June 1, 2025.”He doubled down later in the day, telling reporters in the Oval Office that there was nothing the 27-nation bloc could do to change his mind.”I’m not looking for a deal. I mean, we’ve set the deal. It’s at 50 percent,” Trump said. “They haven’t treated our country properly. They banded together to take advantage of us.”Billionaire property tycoon Trump, 78, also denied that his tariffs would hurt American businesses.”They’re not hurting, they’re helping,” he said.Trump’s new tariffs would, if imposed, dramatically raise Washington’s current baseline levy of 10 percent, and fuel simmering tensions between the world’s biggest economy and its largest trading bloc.The EU’s trade chief said the bloc would work for a trade deal with Washington based on “respect” not “threats.””The EU’s fully engaged, committed to securing a deal that works for both,” trade commissioner Maros Sefcovic posted on X, after a previously planned call with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick.In a separate message posted Friday that also unnerved markets, Trump blasted Apple boss Tim Cook for failing to move iPhone production to the United States despite repeated requests.Trump said he had “long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else.” “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”Trump later stepped up his threats, saying he would hit all smartphones not made in the country.”It would be also Samsung and anybody that makes that product, otherwise it wouldn’t be fair,” Trump told reporters, adding that the new tariffs would come into effect from the end of June.- Market worries -Trump imposed sweeping tariffs on most of the world on what he called “Liberation Day” on April 2, with a baseline 10 percent plus steeper duties including a 20 percent levy on the EU.Markets were thrown into turmoil but calmed after he paused the bigger tariffs for 90 days.Trump has since claimed some early successes in deals struck with Britain and with China, the world’s second biggest economy.But talks with the EU have failed to make much progress, with Brussels recently threatening to hit US goods worth nearly 100 billion euros ($113 billion) with tariffs if it does not lower the duties on European goods.US Treasury Secretary Scott Bessent told Bloomberg Television on Friday the lower 10 percent tariff rate was “contingent on countries or trading blocs coming and negotiating in good faith.”Wall Street’s main indexes were all down around one percent two hours into trading, with the tech-heavy Nasdaq at one stage losing 1.5 percent before rallying while Apple shares sank 2.5 percent.Paris and Frankfurt ended with losses of around 1.5 percent, while London’s FTSE 100, which initially rose, also ended in the red.”The administration had kind of hinted that they were considering imposing reciprocal tariffs on countries that weren’t negotiating in good faith,” Barclays senior US economist Jonathan Millar told AFP. 

Shares of steelmaker US Steel skyrocketed on Friday after President Donald Trump announced his support for a “partnership” with Japan’s Nippon Steel. Trump’s remarks are the latest in a long saga which began in December 2023, when US Steel and Nippon Steel announced plans for a $14.9 billion merger under a deal bitterly opposed by the unions. “US Steel will REMAIN in America, and keep its Headquarters in the Great City of Pittsburgh,” the US president posted on Truth Social, adding that the “planned partnership” between America’s US Steel and Japan’s Nippon Steel would create at least 70,000 jobs and add $14 billion to the US economy. The Pennsylvania-headquartered firm’s share price popped on the news, closing up more than 21 percent and then increasing further in after-hours trading.It was not immediately clear what the terms of this new partnership were, and neither company, nor the White House, responded to a request for comment.The United Steelworkers’ union (USW), which represents US Steel employees and has long opposed the deal, said it could not “speculate” on the impact of Trump’s announcement without more information. “Our concern remains that Nippon, a foreign corporation with a long and proven track record of violating our trade laws, will further erode domestic steelmaking capacity and jeopardize thousands of good, union jobs,” USW International President David McCall said in a statement.  Nippon’s acquisition of US Steel was originally meant to close by the end of 2024’s third financial quarter, but was then held up by former president Joe Biden, who blocked it in his last weeks in office on national security grounds.The two firms then filed a lawsuit against the Biden administration’s “illegal interference” in the transaction.Earlier this month, Trump ordered his own review of the deal, directing the government’s Committee on Foreign Investment in the United States (CFIUS) to look into the proposed acquisition.CFIUS, tasked with analyzing the national security implications of foreign takeovers of US companies, was given 45 days to submit its recommendations to Trump.

Stock markets dropped Friday after US President Donald Trump ended a lull in his trade war with threats of massive tariffs on Apple products and imports from the European Union.Wall Street’s main indexes spent the entire session in the red. The biggest loser of the three was the Nasdaq, weighed down by a three percent fall in Apple.Paris and Frankfurt ended with losses of around 1.5 percent, with shares in luxury and car companies taking a hit after Trump threatened 50 percent tariffs on EU goods.London’s FTSE 100, which initially rose, also ended in the red.Germany’s DAX had also been higher earlier in the day as German economic growth data was revised up.”What is somewhat of a surprise is the fact that the EU will now face a considerably higher tariff rate than China, an almost unthinkable scenario just a matter of weeks ago,” said Lindsay James, investment strategist at Quilter.”It is highlighting that much of this policy is designed to be punitive, rather than having any economic credibility to it.”Oil prices rebounded, meanwhile, having earlier dropped by around one percent, while the dollar remained under pressure.Trump’s new threats revived investor concerns about his trade policies after a recent deal with Britain and a tariffs truce with China.”All the optimism over trade deals wiped out in minutes –- seconds, even,” said Fawad Razaqzada, market analyst at StoneX.Trump said on his Truth Social platform that he was “recommending a straight 50% Tariff on the European Union” from June 1 as “discussions with them are going nowhere!””The EU is one of Trump’s least favorite regions, and he does not seem to have good relations with its leaders, which increases the chance of a prolonged trade war between the two,” said Kathleen Brooks, research director at trading platform XTB.The US president had announced 20 percent tariffs on EU goods last month but suspended the measure to give space for negotiations.Trump, however, maintained a 10 percent levy on imports from the 27-nation bloc and nearly every other nation around the world, along with 25 percent duties on the car, steel and aluminium industries.He also threatened on Friday to hit Apple with a 25 percent tariff if its iPhones are not manufactured in the United States.Trump initially said the tariff would apply only to Apple — an unusual move in singling out a specific company in trade policy. However, he later expanded the threat to include all smartphone manufacturers, telling reporters the levy could also hit Samsung.Trump’s social media outburst rocked stock markets which had steadied following losses over concerns about the ballooning US debt and rising US borrowing costs.- Key figures at around 2050 GMT -New York – Dow: DOWN 0.6 percent at 41,603.07 (close)New York – S&P 500: DOWN 0.7 percent at 5,802.82 (close)New York – Nasdaq Composite: DOWN 1.0 percent at 18,737.21 (close)London – FTSE 100: DOWN 0.2 percent at 8,717.97 (close)Paris – CAC 40: DOWN 1.7 percent at 7,734.40 (close)Frankfurt – DAX: DOWN 1.5 percent at 23,629.58 (close)Tokyo – Nikkei 225: UP 0.5 percent at 37,160.47 (close)Hong Kong – Hang Seng Index: UP 0.2 percent at 23,601.26 (close)Shanghai – Composite: DOWN 0.9 percent at 3,348.37 (close)Euro/dollar: UP at $1.1369 from $1.1281 on ThursdayPound/dollar: UP at $1.3535 from $1.3412Dollar/yen: DOWN at 142.57 yen from 144.01 yenEuro/pound: DOWN at 83.96 pence from 84.06 penceBrent North Sea Crude: UP 0.5 percent at $64.78 per barrelWest Texas Intermediate: UP 0.5 percent at $61.53 per barrel

President Donald Trump rekindled the US trade war on Friday, threatening to impose a 50 percent tariff on the European Union ahead of planned trade talks — and drawing a strong response from European politicians. The new duties on Brussels would, if imposed, dramatically raise Washington’s current baseline levy of 10 percent, and fuel simmering tensions between the world’s biggest economy and its largest trading bloc.Lamenting that negotiations with the EU “are going nowhere,” Trump said on Truth Social on Friday that he is recommending “a straight 50% Tariff on the European Union, starting on June 1, 2025.”The EU had been “formed for the primary purpose of taking advantage of the United States on TRADE,” he said, taking a swipe at “difficult” negotiations.European leaders and senior politicians reacted with dismay to Trump’s announcement, and called for de-escalation. “We are sticking to our position: de-escalation, but ready to respond,” France’s trade minister Laurent Saint-Martin posted on the X social media platform. Irish Prime Minister Micheal Martin called Trump’s announcement “enormously disappointing,” writing on X that “tariffs are damaging to all sides.””We do not need to go down this road,” he said, without spelling out how Europe might respond.An EU spokesperson declined to comment on Trump’s latest tariff threats on Friday, telling reporters that there was a pre-planned call later in the day between EU Trade Commissioner Maros Sefcovic and US Trade Representative (USTR) Jamieson Greer. Wall Street stocks fell on the news, before paring some losses.”The administration had kind of hinted that they were considering imposing reciprocal tariffs on countries that weren’t negotiating in good faith,” Barclays senior US economist Jonathan Millar told AFP. “And this kind of tweet this morning by the president suggests that that’s becoming a more likely possibility,” he said in an interview. – ‘Difficult’ negotiations -Trump imposed a new sweeping “baseline” tariff of 10 percent against most countries last month, and even steeper duties on dozens of trading partners — including a 20 percent levy on the EU — which have since been paused for 90 days to allow for trade talks. The Trump team has claimed some early successes in its deals struck with Britain and China, but talks with the EU have failed to make much progress, with Brussels recently threatening to hit US goods worth nearly 100 billion euros ($113 billion) with tariffs if it does not lower the duties on European goods.The United States ran a trade deficit with the EU totalling $235.6 billion last year, up 12.9 percent from a year earlier, according to data from USTR. The EU has noted that the overall trade deficit — including services — is much smaller, in the region of 50 billion euros, or around $56 billion. Speaking to Bloomberg Television on Friday, US Treasury Secretary Scott Bessent said the lower 10 percent tariff rate was “contingent on countries or trading blocs coming and negotiating in good faith.””And I think the president was getting frustrated with the EU,” he said.Spokespeople for USTR, the Commerce Department, the White House, and the Treasury Department did not respond to a request for comment on the details of Trump’s tariff plans. – US-made iPhones ‘not feasible’ -In a separate message posted Friday, Trump blasted Apple for failing to move iPhone production to the United States despite his repeated requests, and threatened new duties of “at least” 25 percent if they did not comply.Trump’s criticism of the US tech titan revived the pressure on Apple’s chief executive Tim Cook to do more to bring manufacturing jobs back to the United States from Asia. Most of Apple’s iPhone assembly happens in China, although the company has in recent years been shifting assembly to other countries, including India.Apple did not respond to a request for comment. One problem with Trump’s proposal, according to Wedbush Securities analyst Dan Ives, is that reshoring iPhone production to the United States “is a fairy tale that is not feasible.”Ives predicted moving assembly back across the Pacific Ocean could push up iPhone prices to $3,500. Another issue Trump may face is that he cannot impose tariffs — a form of import taxes — on a specific company, according to Georgetown University law professor Jennifer Hillman.If he wanted to, Trump could impose economic sanctions against a company like Apple, she told AFP by email. But, she added, those measures would “not take the form of tariffs.”   burs-da/md

Stock markets tumbled Friday after US President Donald Trump ended a lull in his trade war with threats of massive tariffs on Apple products and imports from the European Union.Wall Street’s main indexes fell at the open, with the broad-based S&P 500 shedding 1.2 percent and the tech-heavy Nasdaq falling by 1.5 percent as Apple shares sank 2.5 percent.The Paris CAC 40 index was down 2.3 percent in afternoon deals while the Frankfurt DAX retreated by 1.8 percent, with shares in luxury and car companies taking a hit.London’s FTSE 100, which had been up earlier, fell into the red. The DAX had also been higher earlier in the day as German economic growth data was revised up.Oil prices also reversed course to fall by around one percent while the dollar remained under pressure.Trump’s new threats revived investor concerns about his trade policies after a recent deal with Britain and a tariffs truce with China.”All the optimism over trade deals wiped out in minutes –- seconds, even,” said Fawad Razaqzada, market analyst at StoneX.Trump said on his Truth Social platform that he was “recommending a straight 50% Tariff on the European Union” from June 1 as “discussions with them are going nowhere!””The EU is one of Trump’s least favourite regions, and he does not seem to have good relations with its leaders, which increases the chance of a prolonged trade war between the two,” said Kathleen Brooks, research director at XTB trading platform.The US president had announced 20 percent tariffs on EU goods last month but suspended the measure to give space for negotiations.Trump, however, maintained a 10 percent levy on imports from the 27-nation bloc and nearly every other nation around the world, along with 25 percent duties on the car, steel and aluminium industries.He also threatened on Friday to hit Apple with a 25 percent tariff if its iPhones are not manufactured in the United States.”Trump’s attack on Apple looks like one of his negotiating tactics to us,” Brooks said, noting that the threat comes as his tax-cut plan faces Senate debate after passing the lower house of Congress.”This looks like a negotiating maneuver to get Apple to pay the bulk of their tax in the US, including taxes for non-US sales,” she said.”If this happens, then we would not be surprised to see the iPhone tariff disappear.”Trump’s social media outburst rocked stock markets which had steadied following losses over concerns about the ballooning US debt and rising US borrowing costs.Investors were already on edge after Moody’s stripped the United States of its top-tier credit rating and the House of Representatives approved Trump’s tax cut plan, which critics say would add to the country’s debt pile.The yield — or borrowing costs — on 10-year and 30-year US government bonds surged this week as investors worry about the fiscal health of the world’s biggest economy.The yields eased late Thursday.Trump’s tax package, which now goes to the Senate, had faced scepticism from fiscal hawks who fear the country is headed for bankruptcy.Independent analysts warn it would increase the deficit by as much as $4 trillion over a decade.But the White House insists it will spur growth of up to 5.2 percent, ensuring it adds nothing to the $36 trillion national debt — growth projections that are well outside the mainstream consensus.- Key figures at around 1330 GMT -New York – Dow: DOWN 1.0 percent at 41,427.91 pointsNew York – S&P 500: DOWN 1.1 percent at 5,778.02New York – Nasdaq Composite: DOWN 1.5 percent at 18,644.41London – FTSE 100: DOWN 0.6 percent at 8,683.32Paris – CAC 40: DOWN 2.3 percent at 7,685.87Frankfurt – DAX: DOWN 1.8 percent at 23,568.04Tokyo – Nikkei 225: UP 0.5 percent at 37,160.47 (close)Hong Kong – Hang Seng Index: UP 0.2 percent at 23,601.26 (close)Shanghai – Composite: DOWN 0.9 percent at 3,348.37 (close)Euro/dollar: UP at $1.1326 from $1.1281 on ThursdayPound/dollar: UP at $1.3500 from $1.3419Dollar/yen: DOWN at 142.81 yen from 143.99 yenEuro/pound: DOWN at 83.91 pence from 84.07 penceBrent North Sea Crude: DOWN 1.0 percent at $63.83 per barrelWest Texas Intermediate: DOWN 1.0 percent at $60.62 per barrel

European stock markets tumbled Friday after US President Donald Trump ended a lull in his trade war as he raised the spectre of hitting imports from the European Union with a massive 50-percent tariff.The Paris CAC 40 index and Frankfurt DAX fell by around three percent at one point, with shares in luxury and car companies taking a hit, before paring back some losses.London’s FTSE 100, which had been up earlier, fell into the red. The DAX was also higher earlier in the day as German economic growth data was revised up.US stock futures — contracts that indicate how markets will open — were also in negative territory.Trump’s new threats revived investor concerns about his trade policies after a recent deal with Britain and a tariffs truce with China.”All the optimism over trade deals wiped out in minutes –- seconds, even,” said Fawad Razaqzada, market analyst at StoneX.Trump said on his Truth Social platform that he was “recommending a straight 50% Tariff on the European Union” from June 1 as “discussions with them are going nowhere!”The US president had announced 20 percent tariffs on EU goods last month but suspended the measure to give space for negotiations.Trump, however, maintained a 10 percent levy on imports from the 27-nation bloc and nearly every other nation around the world, along with 25 percent duties on the car, steel and aluminium industries.He also threatened on Friday to hit Apple with a 25 percent tariff if its iPhones are not manufactured in the United States.His social media outburst rocked stock markets which had steadied following losses over concerns about the ballooning US debt and rising US borrowing costs.Investors were already on edge after Moody’s stripped the United States of its top-tier credit rating and the House of Representative approved Trump’s tax cut plan, which critics say would add to the country’s debt pile.The yield — or borrowing costs — on 10-year and 30-year US government bonds surged this week as investors worry about the fiscal health of the world’s biggest economy.The yields eased late Thursday.Trump’s tax package, which now goes to the Senate, had faced scepticism from fiscal hawks who fear the country is headed for bankruptcy.Independent analysts warn it would increase the deficit by as much as $4 trillion over a decade.But the White House insists it will spur growth of up to 5.2 percent, ensuring it adds nothing to the $36 trillion national debt — growth projections that are well outside the mainstream consensus.Oil prices also reversed course to fall by around one percent following Trump’s new tariff threats.- Key figures at around 1235 GMT -London – FTSE 100: DOWN 0.9 percent at 8,658.03 pointsParis – CAC 40: DOWN 2.3 percent at 7,684.35Frankfurt – DAX: DOWN 2.1 percent at 23,501.11Tokyo – Nikkei 225: UP 0.5 percent at 37,160.47 (close)Hong Kong – Hang Seng Index: UP 0.2 percent at 23,601.26 (close)Shanghai – Composite: DOWN 0.9 percent at 3,348.37 (close)New York – Dow: FLAT at 41,859.09 (close)Euro/dollar: UP at $1.1337 from $1.1281 on ThursdayPound/dollar: UP at $1.3506 from $1.3419Dollar/yen: DOWN at 142.53 yen from 143.99 yenEuro/pound: DOWN at 83.94 pence from 84.07 penceBrent North Sea Crude: DOWN 1.0 percent at $63.81 per barrelWest Texas Intermediate: DOWN 1.1 percent at $60.55 per barrel

Equities mostly rose Friday following the previous day’s US bond-fuelled sell-off with traders tracking a slight pullback in Treasury yields as Donald Trump’s signature tax-cutting budget passed a key congressional vote.Worries about the US budget deficit have returned to the fore this week after Moody’s removed its top-tier credit rating and the president pushed ahead with a budget that some suggest will expand the country’s ballooning debt.A tepid auction of 20-year Treasuries on Wednesday ramped up those concerns, dealing a blow to stocks that had just recovered from the April fireworks of Trump’s tariff blitz.Still, sentiment stabilised on Thursday, with yields pulling back after the Republican-led House narrowly passed Trump’s “One Big, Beautiful Bill Act”, which shrinks social safety net programmes to pay for a 10-year extension of his 2017 tax cuts.The package, which now goes to the Senate, had faced scepticism from fiscal hawks who fear the country is headed for bankruptcy, with independent analysts warning it would increase the deficit by as much as $4 trillion over a decade.But the White House insists it will spur growth of up to 5.2 percent, ensuring it adds nothing to the $36 trillion national debt — growth projections that are well outside the mainstream consensus.There is a feeling that “perhaps the fiscal worries have gone a bit too far”, said Pepperstone’s Chris Weston.”Many have crunched the numbers on the tax bill and see the raft of measures to not be overly stimulatory and to therefore result in a major blowout of the deficit in 2026 and 2027 and is, in fact, quite neutral in its effect.”The drop in Treasury yields — suggesting improving demand for US debt — was helped by upbeat data on the jobs market, home sales and factory activity that observers said indicated the economy remained healthy.A mixed day on Wall Street was followed by a slightly better performance in Asia.Tokyo, Hong Kong, Sydney, Mumbai, Bangkok, Manila and Jakarta rose with London, Paris and Frankfurt.But Shanghai, Singapore, Taipei and Wellington struggled.There was a little cheer from comments by Federal Reserve Governor Christopher Waller, who said interest rates could be cut in the second half of the year if Trump’s tariffs come back down to around 10 percent.”If we can get the tariffs down closer to 10 percent and then that’s all sealed, done and delivered somewhere by July, then we’re in good shape for the second half of the year,” he told Fox Business.The dollar slipped against the yen as figures showed Japanese inflation rose more than expected owing to a surge in food prices, particularly a near doubling in the cost of rice.The reading turns the focus on the Bank of Japan as it considers its next move on monetary policy after a recent spate of interest rate hikes and in light of Trump’s tariffs. Bitcoin pressed on with its latest rally, hitting a record of $111,980.33, on hopes for a cryptocurrency bill on the regulation of so-called stablecoins, digital coins with value tied to the dollar. This has led to optimism for future regulatory clarity in the sector, including for bitcoin, which is not directly linked to the dollar.- Key figures at around 0810 GMT -Tokyo – Nikkei 225: UP 0.5 percent at 37,160.47 (close)Hong Kong – Hang Seng Index: UP 0.2 percent at 23,601.26 (close)Shanghai – Composite: DOWN 0.9 percent at 3,348.37 (close)London – FTSE 100: UP 0.4 percent at 8,771.35Dollar/yen: DOWN at 143.34 yen from 143.99 yen on ThursdayEuro/dollar: UP at $1.1335 from $1.1281 Pound/dollar: UP at $1.3474 from $1.3419Euro/pound: UP at 84.11 pence from 84.07 penceWest Texas Intermediate: DOWN 1.0 percent at $60.62 per barrelBrent North Sea Crude: DOWN 0.9 percent at $63.89 per barrelNew York – Dow: FLAT at 41,859.09 (close)