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A London-bound passenger plane crashed Thursday in a residential area of the Indian city of Ahmedabad, with all 242 people on board believed killed.An AFP journalist saw people recovering bodies and firefighters trying to douse the smouldering wreckage after the Boeing 787-8 Dreamliner smashed into a building.”The tragedy in Ahmedabad has stunned and saddened us. It is heartbreaking beyond words,” Prime Minister Narendra Modi said after Air India’s flight 171 crashed after takeoff.City police commissioner GS Malik told AFP there “appears to be no survivor in the crash”. “And since the airplane has fallen on an area which was residential and had some offices, there are more casualties as well,” he added.”Our office is near the building where the plane crashed. We saw people from the building jumping from the second and third floor to save themselves. The plane was in flames,” said one resident, who declined to be named.India’s civil aviation authority said there were 242 people aboard, including two pilots and 10 cabin crew. Air India said there were 169 Indian passengers, 53 British, seven Portuguese, and a Canadian on board the flight bound for London Gatwick.UK Prime Minister Keir Starmer said the scenes from the crash were “devastating”, in a statement addressing passengers and their families “at this deeply distressing time.” The plane issued a mayday call and “crashed immediately after takeoff” outside the airport perimeter, the Directorate General of Civil Aviation said.Ahmedabad, the main city of India’s Gujarat state, is home to around eight million people, and the busy airport is surrounded by densely packed residential areas. “When we reached the spot there were several bodies lying around and firefighters were dousing the flames,” resident Poonam Patni told AFP. “Many of the bodies were burned,” she added.An AFP journalist saw medics using a cart to load bodies into an ambulance, while a charred metal bed frame stood surrounded by burnt wreckage. A photograph published by India’s Central Industrial Security Force, a national security agency, showed the back of the plane rammed into a building.The plane came down in an area between Ahmedabad civil hospital and the city’s Ghoda Camp neighbourhood.- ‘Devastating’ -Aviation minister Ram Mohan Naidu Kinjarapu directed “all aviation and emergency response agencies to take swift and coordinated action.””Rescue teams have been mobilised, and all efforts are being made to ensure medical aid and relief support are being rushed to the site,” he added. The airport was shut with all flights “suspended until further notice”, the operator said.US planemaker Boeing said it was “working to gather more information” on the incident which a source close to the case said was the first crash for a 787 Dreamliner. Air India ordered 100 more Airbus planes last year after a giant contract in 2023 for 470 aircraft — 250 Airbus and 220 Boeing. The airline’s chairman, Natarajan Chandrasekaran, said an emergency centre has been activated and a support team set up for families seeking information.”Our thoughts and deepest condolences are with the families and loved ones of all those affected by this devastating event,” he said.India has suffered a series of fatal air crashes, including a 1996 disaster when two jets collided mid-air over New Delhi, killing nearly 350 people.In 2010 an Air India Express jet crashed and burst into flames at Mangalore airport in southwest India, killing 158 of the 166 passengers and crew on board.India’s airline industry has boomed in recent years with Willie Walsh, director general of the International Air Transport Association (IATA), last month calling growth “nothing short of phenomenal”.The growth of its economy has made India and its 1.4 billion people the world’s fourth-largest air market — domestic and international — with IATA projecting it will become the third biggest within the decade.India’s domestic air passenger traffic reached a milestone last year by “surpassing 500,000 passengers in a single day”, according to India’s Ministry of Civil Aviation.

Air India’s London-bound flight 171 that crashed on Thursday with 242 people on board was a Boeing 787-8 Dreamliner, part of India’s bold push to radically expand its air industry sector.The growth of its economy has made India and its 1.4 billion people the world’s fourth-largest air market — domestic and international — with IATA projecting it will become the third biggest within the decade.Indian Prime Minister Narendra Modi, who called the crash “heartbreaking beyond words”,  has made the development of the air sector a priority since coming to power in 2014.Modi, who has said he wants to “bring air travel to the common people”, began a plan in 2016 to boost air links between small towns and megacities in the world’s most populous nation.”A common man who travels in slippers should also be seen in the aircraft — this is my dream,” Modi was quoted as saying by the aviation ministry at the time.Air India, the country’s former national carrier, was taken over by the Tata Group in 2022.The sprawling salt-to-software conglomerate has since sought to turn around the airline by ordering new aircraft and upgrading its existing fleet.The airline currently operates a fleet of over 190 planes, according to latest available data on its website, including 58 Boeing aircraft. Over the last two years it has placed orders for 570 new aircraft.In September 2024, Air India kicked off a $400 million refit programme to revamp 67 legacy aircraft in its fleet.The airline’s global network spans 31 countries across five continents, connecting India with destinations in North America, Europe and Asia Pacific.The airline says it operates about 5,000 flights a week “to and from 49 destinations within India and 43 destinations outside of India”.Domestic air passengers have more than doubled in the past decade, according to government figures, as Indian airlines quickly ramp up their fleets. This has partly helped the number of airports more than double in the past decade — from 74 in 2014 to 157 in 2024, according to ministry figures. The government is pouring in millions of dollars and is promising to increase the number of airports to between 350 and 400 by 2047, the centenary of India’s independence.At the same time, the government has opened programmes to train some 30,000 pilots and at least as many mechanics over the next 20 years.

Stock markets and the dollar retreated Thursday after US President Donald Trump threatened higher unilateral tariffs on partners in the coming weeks, reigniting trade war fearsHis comments overshadowed any optimism that came from the United States and China reaching a deal this week to dial down tensions. The dollar slumped one percent against the euro, while oil prices slid on profit-taking, after having surged Wednesday.Geopolitical concerns were also weighing on sentiment after Trump said US personnel were being moved from the Middle East, as nuclear talks with Iran faltered and fears of a regional conflict grew.Asia’s main stock markets mostly closed down, while eurozone indices led losses in Europe.On the corporate front, shares in British carrier easyJet and British Airways owner IAG fell almost four percent, following news that a London-bound Air India plane — a Boeing 787 — had crashed in Ahmedabad. Ahead of Wall Street reopening, Boeing said it was “working to gather more information”.Markets were firmly focused on Trump’s latest move over tariffs.”Mainland European markets are being hit hard… amid growing concerns that we could soon see the trade war break out once again,” said Joshua Mahoney, chief market analyst at broker Rostro. Trump shook confidence on Wednesday by saying he would soon send letters telling governments what levies Washington would be imposing.”We’re going to be sending letters out in about a week and a half, two weeks, to countries, telling them what the deal is,” he told reporters.”This is the deal, you can take it or leave it,” he added.The US had paused until July 9 reciprocal levies imposed on many trading partners at the start of April, to allow countries to cut deals with the White House.This had sparked a relief rally for stocks.But Trump’s latest comments revived fears about sky-high levies and the impact on the economy. Trump has already threatened 50-percent levies on the EU once the July 9 deadline passes.Outside the eurozone, London managed to limit losses even as official data showed the UK economy shrank more than expected in April, as tariffs kicked in.Trump’s renewed threat to hammer trading partners’ exports came not long after US and China reached a tentative deal that would increase Chinese exports of rare earths while allowing Chinese students to remain in American universities.Wall Street struggled on Wednesday as trade worries overshadowed another below-forecast inflation reading that provided fresh speculation the Federal Reserve will cut interest rates.Oil prices slid 1.5 percent Thursday, having surged Wednesday when Trump said US personnel were being moved from the potentially “dangerous” Middle East as Iran nuclear talks stutter.The move came as US reports suggested Israel could be preparing to strike targets in Iran, and as Tehran threatened to target US military bases in the region if a regional conflict broke out.Trump, who had recently expressed optimism about the talks with Iran, said in an interview published Wednesday that he was “less confident”.- Key figures at around 1050 GMT -London – FTSE 100: DOWN 0.1 percent at 8,851.96 pointsParis – CAC 40: DOWN 0.7 percent at 7,723.01 Frankfurt – DAX: DOWN 1.0 percent at 23,709.01Tokyo – Nikkei 225: DOWN 0.7 percent at 38,173.09 (close)Hong Kong – Hang Seng Index: DOWN 1.4 percent at 24,035.38 (close)Shanghai – Composite: FLAT at 3,402.66 (close)New York – Dow: FLAT at 42,865.77 (close)Euro/dollar: UP at $1.1596 from $1.1489 on WednesdayPound/dollar: UP at $1.3591 from $1.3545Dollar/yen: DOWN at 143.54 yen from 144.62 yenEuro/pound: UP at 85.35 pence from 84.79 penceWest Texas Intermediate: DOWN 1.5 percent at $67.13 per barrelBrent North Sea Crude: DOWN 1.5 percent at $68.75 per barrel

Myanmar’s economy is set to shrink 2.5 percent in the 2025/26 financial year, largely as a result of March’s devastating magnitude-7.7 earthquake, the World Bank said on Thursday.The country’s economy had already been battered by four years of brutal civil war when the March 28 tremor hit, killing nearly 3,800 people and destroying swathes of homeS and businesses.A World Bank report predicted GDP will contract 2.5 percent in the financial year ending in March 2026 “mostly due to earthquake impacts”, with output $2 billion lower than it would have been without the disaster.”Production across all sectors has been disrupted by factory closures, supply chain constraints, labour shortages, and damage to infrastructure,” said a World Bank statement.The tremor also inflicted an estimated $11 billion of damage, equivalent to 14 percent of GDP, according to the report.Myanmar’s sparsely populated administrative capital Naypyidaw and the second-largest city of Mandalay were the worst impacted by the quake.The World Bank predicted both regions would suffer from output slashed by a third between April and September, before being buoyed by reconstruction efforts in the second half of the financial year.”The earthquake caused significant loss of life and displacement, while exacerbating already difficult economic conditions, further testing the resilience of Myanmar’s people,” said Melinda Good, World Bank division director for Thailand and Myanmar.Myanmar’s military seized power in a 2021 coup which sparked a many-sided civil war between its troops, pro-democracy guerillas and ethnic armed groups which have long held sway in the country’s fringes.While the military and some of its adversaries have pledged a ceasefire throughout this month to spur aid efforts, intense combat has continued in locations across the country.The fighting has eviscerated Myanmar’s economy. Inflation for the year up to April 2025 was estimated at 34.1 percent, the World Bank report said.More than three million people are currently displaced in the country and the World Bank said 2024’s poverty rate was estimated at over 30 percent.

Investors were rattled on Thursday after Donald Trump said he would impose unilateral tariffs on partners in the next two weeks, reigniting trade war fears soon after reaching a deal with China to dial down tensions between the superpowers.The mood was also shaded by geopolitical concerns after the US president said personnel were being moved from the Middle East as nuclear talks with Iran faltered and fears of a regional conflict grew.The equity losses snapped a recent rally fuelled by talks between Beijing and Washington in London that saw them hammer out a framework agreement to move towards a pact to reduce levies.Investors have been on edge since Trump’s “Liberation Day” tariff blitz on April 2 that sent shockwaves through stock and bond markets and stoked global recession fears.Days later he announced a pause in those measures until July 9 to allow for countries to cut deals with the White House, sparking relief rallies that have pushed some markets towards all-time highs.However, he once again shook confidence by saying on Wednesday that he intended to send letters telling governments what levies Washington would be imposing.”We’re going to be sending letters out in about a week-and-a-half, two weeks, to countries, telling them what the deal is,” he told reporters.”At a certain point, we’re just going to send letters out. And I think you understand that, saying this is the deal, you can take it or leave it.”While some analysts indicated that previous threats had been rowed back, the comments added to the ongoing uncertainty about Trump’s policies, reviving fears about sky-high levies and the impact on the economy.They also came not long after he had flagged the London agreement, and posted on social media that “President Xi and I are going to work closely together to open up China to American Trade”, referring to his counterpart Xi Jinping.Stephen Innes at SPI Asset Management said: “Whether this is a hardball negotiation tactic or a pressure valve reset ahead of another 90-day extension is anyone’s guess — but traders are reading it as another layer of headline risk.”The market knows the Trump playbook: bark, delay, then deal. But the closer we get to the cliff’s edge, the more likely someone slips.”- Rate cut speculation -Most Asian markets fell on Thursday, with Tokyo, Hong Kong, Wellington, Sydney, Taipei, Mumbai, Bangkok and Jakarta in the red after a broadly healthy run-up this week. London was flat as data showed the UK economy shrank more than expected in April, while Paris and Frankfurt fell.There were gains in Singapore, Seoul and Wellington. Shanghai was barely moved.The weak performance followed losses on Wall Street, where trade worries overshadowed another below-forecast inflation reading that provided fresh speculation the Federal Reserve will cut interest rates.Oil prices slipped more than one percent after Wednesday’s surge that came after Trump said US personnel were being moved from the potentially “dangerous” Middle East as Iran nuclear talks stutter.The move came as Tehran threatened to target US military bases in the region if a regional conflict broke out.The US president said the staff were “being moved out because it could be a dangerous place”.”We’ve given notice to move out and we’ll see what happens.”With regard to Iran, he added: “They can’t have a nuclear weapon, very simple. We’re not going to allow that.” Trump had until recently expressed optimism about the talks, but said in an interview published on Wednesday that he was “less confident”.- Key figures at around 0810 GMT -Tokyo – Nikkei 225: DOWN 0.7 percent at 38,173.09 (close)Hong Kong – Hang Seng Index: DOWN 1.4 percent at 24,035.38 (close)Shanghai – Composite: FLAT at 3,402.66 (close)London – FTSE 100: FLAT at 8,863.25Euro/dollar: UP at $1.1522 from $1.1489 on WednesdayPound/dollar: DOWN at $1.3541 from $1.3545Dollar/yen: DOWN at 143.95 yen from 144.62 yenEuro/pound: UP at 85.09 pence from 84.79 penceWest Texas Intermediate: DOWN 1.3 percent at $67.29 per barrelBrent North Sea Crude: DOWN 1.3 percent at $68.84 per barrelNew York – Dow: FLAT at 42,865.77 (close)

All is calm at Satoshi Yamazaki’s rice farm, with its freshly planted rows of vivid-green seedlings, but a row over the cost of the staple in Japan is threatening to deal the government a blow at the ballot box.Shortages of the grain caused by a supply chain snarl-up have seen prices almost double in a year, fuelling frustration over inflation — and voters could let their anger be known in upper house elections due next month.To help ease the pain for consumers and restaurants, the government started tapping emergency stockpiles in March, having only previously done so during disasters.Yamazaki, who grows about 10 percent of his rice organically using ducks to eat pests, said he understands high prices are “troubling” for ordinary people.But he stressed that thin profits are a concern for many of those who produce it.”There’s a gap between shop prices and what farmers sell rice for to traders and the like,” he told AFP in the northern Niigata region.”Not all the money paid at shops becomes our income,” said Yamazaki, a 42-year-old father of seven.A mosaic of factors lies behind the shortages, including an intensely hot and dry summer two years ago that damaged harvests nationwide. Since then some traders have been hoarding rice in a bid to boost their profits down the line, experts say. The issue was made worse by panic-buying last year prompted by a government warning about a potential “megaquake” that did not strike.- ‘Old’ rice -Meanwhile, the rising price of imported food has boosted the popularity of domestic rice, while record numbers of tourists are also blamed for a spike in consumption.Farm minister Shinjiro Koizumi has pledged to cut prices quicker by selling stockpiled rice directly to retailers — attracting long queues to some shops.It appears to be working: the average retail price has edged down for a second week to 4,223 yen ($29) for five kilograms (11 pounds), down from a high of 4,285 yen in May.That hasn’t stopped opposition politicians — with an eye on the elections — and online critics branding the reserve rice “old”, with some likening it to animal feed.But analysts also blame Japan’s decades-old policy of cutting rice-farming land. The policy was introduced to support prices that were being hit by falling demand brought about by changes in the Japanese diet.Under the 1971 policy, farmers were told to reduce the amount of space used to grow the grain in favour of other crops.That saw the amount of land used for rice paddies — not including for livestock feed — plunge below 1.4 million hectares (3.5 million acres) in 2024, from a peak of 3.3 million hectares in 1960.While the policy was officially abolished in 2018, it has continued in a form of incentives pushing farmers towards other commodities like soybeans.Adding to the crisis is Japan’s ageing population. Many rice farmers are old and their children have no interest in taking over.Eighty percent of rice farmers are part-time with less than two hectares of fields but they account for only 20 percent of production, said agronomy expert Kazunuki Oizumi, professor emeritus of Miyagi University.Their main revenue comes from other jobs or pensions, he added.- Agriculture ‘destroyed’ -Toru Wakui, chairman of a large-scale farm in the northern Akita region who has for decades fought against the acreage reduction, said Japan should “seek an increase in rice production and exports to foreign markets”.”If you only think about the domestic market while increasing output, of course prices will fall,” he told AFP. “We need to look for markets abroad.””The 55 years of acreage reduction destroyed Japan’s agriculture,” said Wakui, 76, who urged Koizumi in a letter last month to “declare an expansion in rice production”.He also said Japan should consider a scheme to help young people start agriculture businesses without the burden of initial investment in fields and machinery, by involving other sectors including banks and trading companies.Public support for Prime Minister Shigeru Ishiba’s government has tumbled to its lowest level since he took office in October, which local media say was partly caused by the surge in inflation and soaring rice costs.He has told parliament that increasing production is “an option” to temper prices, but said food security and the livelihood of producers was also important.For the farmer Yamazaki, “wanting cheap rice with high quality” is a pipe dream.”We farmers are a little baffled by the limelight that suddenly shifted to us,” he said.”But I think it’s a good opportunity for the public to think about how rice is produced.”

Asian shares were rattled Thursday after Donald Trump said he would impose unilateral tariffs on partners in the next two weeks, reigniting trade war fears soon after reaching a deal with China to dial down tensions between the superpowers.The mood was also shaded by geopolitical concerns after the US president said personnel were being moved from the Middle East as nuclear talks with Iran faltered and fears of a regional conflict grew.The equity losses snapped a recent rally fuelled by talks between Beijing and Washington in London that saw them hammer out a framework agreement to move towards a pact to reduce levies.Investors have been on edge since Trump’s “Liberation Day” tariff blitz on April 2 that sent shockwaves through stock and bond markets and stoked global recession fears.Days later he announced a pause in those measures until July 9 to allow for countries to cut deals with the White House, sparking relief rallies that have pushed some markets towards all-time highs.However, he once again shook confidence by saying Wednesday that he intended to send letters telling governments what levies Washington would be imposing.”We’re going to be sending letters out in about a week and a half, two weeks, to countries, telling them what the deal is,” he told reporters.”At a certain point, we’re just going to send letters out. And I think you understand that, saying this is the deal, you can take it or leave it.”While some analysts indicated that previous threats had been rowed back, the comments added to the ongoing uncertainty about Trump’s policies, reviving fears about sky-high levies and the impact on the economy.They also came not long after he had flagged the London agreement, and posted on social media that “President XI and I are going to work closely together to open up China to American Trade”, referring to his counterpart Xi Jinping.”The uncertainty doesn’t help,” Nick Twidale at AT Global Markets Australia said. “And his overall comments overnight have led to more uncertainty for the market rather than the clarity we were hoping for.”Most Asian markets fell on Thursday, with Tokyo, Hong Kong, Shanghai, Wellington, Taipei and Jakarta in the red after a broadly healthy run-up this week. There were gains in Sydney, Singapore and Seoul.The weak performance followed losses on Wall Street, where trade worries overshadowed another below-forecast inflation reading that provided fresh speculation the Federal Reserve will cut interest rates.Oil prices slipped but held most of Wednesday’s surge of between four and five percent that came after Trump said US personnel were being moved from the potentially “dangerous” Middle East as Iran nuclear talks stutter.The move came as Tehran threatened to target US military bases in the region if a regional conflict broke out.The US president said the staff were “being moved out because it could be a dangerous place”. “We’ve given notice to move out and we’ll see what happens.”With regard to Iran, he then added: “They can’t have a nuclear weapon, very simple. We’re not going to allow that.” Trump had until recently expressed optimism about the talks, but said in an interview published Wednesday that he was “less confident”.- Key figures at around 0230 GMT -Tokyo – Nikkei 225: DOWN 0.7 percent at 38,149.49 (break)Hong Kong – Hang Seng Index: DOWN 0.7 percent at 24,206.17Shanghai – Composite: DOWN 0.1 percent at 3,397.51Euro/dollar: UP at $1.1514 from $1.1489 on WednesdayPound/dollar: UP at $1.3576 from $1.3545Dollar/yen: DOWN at 144.01 yen from 144.62 yenEuro/pound: UP at 84.81 pence from 84.79 penceWest Texas Intermediate: DOWN 0.5 percent at $67.83 per barrelBrent North Sea Crude: DOWN 0.5 percent at $69.44 per barrelNew York – Dow: FLAT at 42,865.77 (close)London – FTSE 100: UP 0.1 percent at 8,864.35 (close)

US President Donald Trump touted “excellent” ties with China on Wednesday, saying the superpowers reached a deal after two days of talks aimed at preserving a truce in their damaging trade war.Trump said on his Truth Social platform that China would supply rare earth minerals and magnets — vital elements for US industries — while Washington would allow Chinese students to remain in American universities.His post came after top United States and Chinese negotiators announced a “framework” agreement late Tuesday following two days of marathon talks in London.The agreement would nonetheless see some recent tariffs remain in place between the major trading partners, and details were sparse.”Our deal with China is done,” Trump wrote, but noting it was still “subject to final approval with President Xi (Jinping) and me.””President XI and I are going to work closely together to open up China to American Trade,” he said in a second post.Major US indexes edged up in early trading before closing lower.- ‘Right track’ -After negotiations spanning more than 20 hours, US Commerce Secretary Howard Lutnick said Wednesday that the talks were “on the right track.””They are going to approve all applications for magnets from United States companies right away,” he told CNBC, on what should happen after Trump and Xi give the green light to the deal.He added that Washington would lift its measures once Beijing acts, and that US tariff levels on China would not change from here.But Treasury Secretary Scott Bessent, testifying before several congressional committees on Wednesday, warned that a broader deal with China would be a “longer process.”He also noted it was possible to rebalance economic ties with Beijing if China proved a “reliable partner in trade negotiations.”Other nations could see an extension of a pause on higher threatened tariff rates if they were deemed to be “negotiating in good faith,” he said.Trump unveiled sweeping tariffs on most trading partners in April but halted steeper rates on dozens of economies until early July as negotiations are underway.With China, Washington agreed to reduce tit-for-tat, triple-digit tariffs during talks in Geneva last month. But cracks appeared in the detente after Trump accused Beijing of violating the deal.Washington was concerned at slower supplies of rare earths after Beijing in early April began requiring domestic exporters to apply for a license — widely seen as a response to US tariffs.On Wednesday, the Wall Street Journal reported that China was putting a six-month limit on rare earth export licenses for US automakers and manufacturers.- ‘Candid’ talks -Rare earths are used in everything from electric vehicles to hard drives, wind turbines and missiles.On Truth Social, Trump said China will supply “full magnets, and any necessary rare earths” up front.Washington has also raised Beijing’s ire by vowing to revoke the visas of Chinese students, a major source of revenue for US universities.On Wednesday, Trump said: “We will provide to China what was agreed to, including Chinese students using our colleges and universities.”The US president added that the United States applies 55 percent tariffs on Chinese goods. This is a combination of his 30 percent additional levies this year and the rough average of pre-existing duties, a White House official said.He said Beijing charges 10 percent duties on US goods.The rates are the same as those that were previously agreed in the truce, which temporarily brought US tariffs down from 145 percent and those imposed by China from 125 percent.In a Chinese state media readout released Wednesday, Vice Premier He Lifeng, who headed Beijing’s team in London, stressed the need for both sides to strengthen cooperation in future dialogue.Speaking to reporters in London, China International Trade Representative Li Chenggang said: “Our communication has been very professional, rational, in-depth and candid.”burs-lth-bys/des

Wall Street stocks mostly fell Wednesday despite positive movement in the US-China trade conflict, while oil prices rallied on growing tensions between Washington and Tehran.Following two days of talks in London, top US and Chinese negotiators announced a “framework” agreement late Tuesday that included Chinese concessions on rare earth materials along with Washington allowing Chinese students to study at US universities.But stocks fell in what Briefing.com called a “sell the news” response to the announcement, which it also dismissed as short of “groundbreaking.””The two sides agreed to implement what was already agreed upon during a mid-May meeting in Switzerland,” Briefing.com said.Treasury Secretary Scott Bessent warned a broader deal with China would take a “longer process,” saying it was possible to rebalance economic ties with Beijing only if Beijing proved a “reliable partner in trade negotiations.”And for partners “negotiating in good faith,” Bessent told a congressional committee, there could be an extended pause before higher threatened tariff rates take effect in July.The broad-based S&P 500, which rose the last three days, finished down 0.3 percent at 6,022.24.Elsewhere, London edged higher, supported by the government laying out its spending plans. But Paris and Frankfurt couldn’t hold on to early gains and closed modestly lower.Asian stock markets also won a lift on the China-US progress, with Hong Kong among the best performers. “Constructive talks between the US and China have put markets on a firmer footing, as investors hope that the worst of the tariff turbulence may have passed,” said Richard Hunter, head of markets at Interactive Investor. Meanwhile, data showed little impact of Trump’s tariffs on US consumer prices in May. Some analysts said it was still too early to discern a hit to prices from tariffs.Between April and May, the consumer price index (CPI) rose 0.1 percent. Analysts had expected it to continue at the 0.2 rate it rose in April.Following the release of the data, Trump issued a fresh call for the Fed to lower interest rates.Investors have worried that a tariff-driven surge in inflation could hinder the Federal Reserve from lowering interest rates to counter the slowdown in growth.In other markets, oil prices shot up more than four percent as Iran threatened to target US military bases in the region if conflict breaks out.Amid escalating tensions, a US official said staff levels at the embassy in Iraq were being reduced over security concerns, while the UK Maritime Trade Operations, run by the British navy, advised ships to transit the Gulf with caution.- Key figures at around 2030 GMT -New York – Dow: FLAT at 42,865.77 (close)New York – S&P 500: DOWN 0.3 percent at 6,022.24 (close)New York – Nasdaq Composite: DOWN 0.5 percent at 19,615.88 (close)London – FTSE 100: UP 0.1 percent at 8,864.35 (close)Paris – CAC 40: DOWN 0.4 percent at 7,775.90 (close)Frankfurt – DAX: DOWN 0.2 percent at 23,948.90 (close)Tokyo – Nikkei 225: UP 0.6 percent at 38,421.19 (close)Hong Kong – Hang Seng Index: UP 0.8 percent at 24,366.94 (close)Shanghai – Composite: UP 0.5 percent at 3,402.32 (close)Euro/dollar: UP at $1.1489 from $1.1425 on TuesdayPound/dollar: UP at $1.3545 from $1.3500Dollar/yen: DOWN at 144.62 yen from 144.87 yenEuro/pound: UP at 84.79 pence from 84.62 penceBrent North Sea Crude: UP 4.3 percent at $69.77 per barrelWest Texas Intermediate: UP 4.9 percent at $68.15 per barrelburs-jmb/des

Wall Street stocks mostly rose Wednesday as investors welcomed cooler US inflation data and a China-US agreement aimed at lowering trade tensions.After two days of talks between US and Chinese negotiators in London, US President Donald Trump said: “Our deal with China is done”.The United States and China slashed tit-for-tat tariffs after negotiations in Geneva last month, but tensions flared up again after Trump later accused Beijing of violating the pact reached in Switzerland.The positive London talks provided some relief to markets.”Constructive talks between the US and China have put markets on a firmer footing, as investors hope that the worst of the tariff turbulence may have passed,” said Richard Hunter, head of markets at Interactive Investor. Wall Street’s three main indices were higher in late morning trading in New York.London edged higher, supported by the government laying out its spending plans. But Paris and Frankfurt couldn’t hold on to early gains and closed modestly lower.Asian stock markets also won a lift on the China-US progress, with Hong Kong among the best performers. As well as tariffs, a key issue in the discussions was China’s export of rare earths used in smartphones and electric vehicles, while Beijing was keen to see an easing of restrictions on its access to tech goods.Trump said on his Truth Social platform that China would supply rare earth minerals and magnets — vital elements for US industries.The United States, he added, would allow Chinese students to remain in US universities.Washington has infuriated Beijing by vowing to revoke the visas of Chinese students — a major source of revenue for US universities.China said the trade talks made new progress, and vice premier He Lifeng stressed the need for Beijing and Washington to strengthen cooperation.Chinese President Xi Jinping and Trump must approve the framework first.The talks came as World Bank downgraded its 2025 forecast for global economic growth to 2.3 percent — from the 2.7 percent predicted in January — citing trade tensions and policy uncertainty.It also said the US economy would expand 1.4 percent this year, half of its 2024 growth.Meanwhile, data showed little impact of Trump’s tariffs on US consumer prices in May.Between April and May, the consumer price index (CPI) rose 0.1 percent. Analysts had expected it to continue at the 0.2 rate it rose in April.It also rose less than expected in the so-called core reading that excludes volatile food and energy prices.”Risk appetite remained firm after the release of weaker-than-expected US inflation data, which boosted speculation that the Federal Reserve will cut interest rates sooner than expected – possibly in September instead of October –- and potentially twice before the year is out,” said City Index and FOREX.com analyst Fawad Razaqzada. Following the release of the data Trump issued a fresh call for the Fed to lower interest rates.Investors have worried that a tariff-driven surge in inflation could hinder the Federal Reserve from lowering interest rates to counter the slowdown in growth. Investors now see a better than even chance the Fed, which has not reduced rates since December, will cut rates in September.The dollar slid against its major rivals.- Key figures at around 1530 GMT -New York – Dow: UP 0.4 percent at 43,022.73 pointsNew York – S&P 500: UP 0.2 percent at 6,051.44New York – Nasdaq Composite: UP 0.2 percent at 19,762.08London – FTSE 100: UP 0.1 percent at 8,864.35 (close)Paris – CAC 40: DOWN 0.4 percent at 7,775.90 (close)Frankfurt – DAX: DOWN 0.2 percent at 23,948.90 (close)Tokyo – Nikkei 225: UP 0.6 percent at 38,421.19 (close)Hong Kong – Hang Seng Index: UP 0.8 percent at 24,366.94 (close)Shanghai – Composite: UP 0.5 percent at 3,402.32 (close)Euro/dollar: UP at $1.1488 from $1.1426 on TuesdayPound/dollar: UP at $1.3545 from $1.3501Dollar/yen: DOWN at 144.65 yen from 144.88 yenEuro/pound: UP at 84.82 pence from 84.61 penceBrent North Sea Crude: UP 1.6 percent at $67.97 per barrelWest Texas Intermediate: UP 1.9 percent at $66.24 per barrelburs-rl/cw