Afp Business Asia

Shipping Nvidia’s H20 chips to China was “great” for Beijing and Washington and not a security threat, the tech giant’s chief said Friday.  The California-based company produces some of the world’s most advanced semiconductors but cannot ship its most cutting-edge chips to China due to concerns from Washington that Beijing could use them to enhance military capabilities.Nvidia developed the H20 — a less powerful version of its AI processing units — specifically for export to China. That plan stalled when the Trump administration tightened export licensing requirements in April.The H20 was “not a national security concern”, Jensen Huang told reporters in Taipei, describing the chip as “great for America” and “great for the Chinese market”.Huang insisted there were “no security backdoors” in the H20 chip allowing remote access, after China summoned company representatives to discuss security issues. “We have made very clear and put to rest that H20 has no security backdoors, there are no such things, there never has, and so hopefully the response that we’ve given to the Chinese government will be sufficient,” Huang said.He sidestepped a question about reports that Nvidia would pay the United States 15 percent of its revenues from the sale of H20 chips to China, which US President Donald Trump confirmed last week.Instead, Huang expressed gratitude to the Trump administration for allowing the chips to be shipped to the Chinese market. “The demand I believe is quite great and so the ability to ship products to, H20s to China, is very much appreciated,” the CEO said.Huang also said Nvidia is in talks with the US government about a new chip for China.”Offering a new product to China for the data center, AI data centers, the follow on to H20, that’s not our decision to make. It’s up to of course the United States government, and we’re in dialogue with them but it’s too soon to know,” he said.Huang met with Trump at the White House this month and agreed to give the federal government the cut from its revenues, a highly unusual arrangement in the international tech trade, according to reports in the Financial Times, Bloomberg and The New York Times.Investors are betting that AI will transform the global economy, and last month Nvidia — the world’s most valuable company and a leading designer of high-end AI chips — became the first company ever to hit $4 trillion in market value.The firm has, however, become entangled in trade tensions between China and the United States, which are waging a heated battle for dominance to produce the chips that power AI.It comes as the Trump administration has been imposing stiff tariffs, with goals varying from addressing US trade imbalances, wanting to reshore manufacturing and pressuring foreign governments to change policies.A 100 percent tariff on many semiconductor imports came into effect this month, with exceptions for tech companies that announce major investments in the United States.

Rice prices in Japan soared 90.7 percent in July year-on-year, official data showed Friday, but the rate of increase slowed from previous months offering some relief for Prime Minister Shigeru Ishiba.Ishiba’s future is uncertain after his coalition lost its majority in both chambers in elections this year, as voters angry about rising prices deserted his long-dominant Liberal Democratic Party.Rice prices have skyrocketed in recent months because of supply problems linked to a very hot summer in 2023 and panic-buying after a “megaquake” warning last year, amongst other factors.Overall, Japan’s core inflation eased to 3.1 percent from 3.3 percent in June.But it remains above the Bank of Japan’s two-percent target, cementing expectations that it will hike interest rates this year.The reading, which excludes fresh food prices, was slightly above market expectations of 3.0 percent. Stripping out energy too, consumer prices rose 3.4 percent — the same as in June.The BoJ last hiked interest rates in January but has been reluctant to tighten monetary policy further.It sees above-target inflation as caused by temporary factors — including the price of rice.This month US Treasury Secretary Scott Bessent added to pressure on the BoJ to hike, saying the central bank was “behind the curve” on inflation.”Although inflation is likely to cool a bit further in the months ahead, it shouldn’t prevent the Bank of Japan from resuming its tightening cycle in October,” Abhijit Surya at Capital Economics said Friday.- Rice reserves -In June the price of rice was 100.2 percent higher than a year earlier. In May the rate was 101.7 percent.Ishiba has appointed a new farm minister and his government has released emergency stocks in an effort to bring prices down.Earlier this month it announced a change in its decades-old policy of encouraging farmers to grow crops other than rice.US President Donald Trump also wants Japan to import more American rice.Last week, data showed that Japan’s economy grew at an annualised pace of 1.0 percent in the second quarter.The reading suggested the economy was suffering less than feared from US tariffs.But other data released Wednesday showed exports to the United States plunging 10.1 percent in July, with cars down 28.4 percent.Trump initially imposed across-the-board tariffs of 10 percent on Japan, as well as levies of 27.5 percent on cars.Japan’s automobile industry, which includes giants such as Toyota and Honda, accounts for around eight percent of the country’s jobs.Japan last month secured a trade deal that cut threatened 25 percent “reciprocal” tariffs to 15 percent.The rate on Japanese cars was also cut to 15 percent, although this has yet to take effect.

Asian markets were mostly up Friday morning ahead of a pivotal speech by the US central bank chief, expected to shed light on possible interest rate cuts in the world’s top economy.Recent days have seen cautious trading as investors parse a mixed outlook for the global economy, beset by worries over inflation even as a boom in tech — especially artificial intelligence — continues.US Federal Reserve Chairman Jerome Powell is set to deliver remarks during an annual gathering of central bankers in Jackson Hole, Wyoming on Friday, a key event for observers weighing the chances of a rate cut at a September meeting of policymakers.Powell has come under intense public pressure this year from President Donald Trump to lower rates — an unusual political intervention at the independent central bank.Stock markets across Asia were up narrowly on Friday, roughly 12 hours before Powell’s speech.Tokyo’s Nikkei index was barely above flat during morning trading, an improvement from Thursday’s 0.7 percent drop.Japan announced Friday that its core inflation rate had eased to 3.1 percent in July from 3.3 percent the previous month — still above its central bank’s two-percent target and boosting expectations of an October rate hike.Stocks in Hong Kong, Shanghai, Seoul and Taipei were also up.Sydney and Bangkok were slightly down.After a shaky few days on Wall Street, Asia “should act as a safe harbour while the Fed’s credibility is under the spotlight”, said Chris Weston, head of research at Pepperstone, in a note.Still, “hesitation to push risk higher will remain”, he said, adding that there is “a very low probability” of Powell calling explicitly for rate cuts in his speech later in the day.Also weighing heavily on investors’ minds is the potential for a peace deal in Ukraine more than three years after Russia’s invasion.Trump on Thursday set a two-week time frame for assessing peace talks between Moscow and Kyiv, following days of high-stakes diplomacy that saw him meet in person with Russian and Ukrainian counterparts Vladimir Putin and Volodymyr Zelensky, as well as several European leaders.Observers have been speculating lately about the impact on oil markets of the possible lifting of sanctions on Russia, a major producer.Oil prices were down slightly on Friday morning, paring back gains over recent days.- Key figures at around 0215 GMT -Tokyo – Nikkei 225: UP 0.1 percent at 42,634.00Hong Kong – Hang Seng Index: UP 0.5 percent at 25,232.39Shanghai – Composite: UP 0.3 percent at 3,783.76Euro/dollar: UP at $1.1611 from $1.1604 on ThursdayPound/dollar: UP at $1.3414 from $1.3412Dollar/yen: UP at 148.52 yen from 148.37 yenEuro/pound: UP at 86.57 pence from 86.52 penceWest Texas Intermediate: DOWN 0.3 percent at $63.35 per barrelBrent North Sea Crude: DOWN 0.3 percent at $67.46 per barrelNew York – Dow: DOWN 0.3 percent at 44,785.50 (close)London – FTSE 100: UP 0.2 percent at 9,309.20 (close)

Global stock markets mostly fell Thursday ahead of a widely anticipated speech by the US central bank chief, although a deal on American tariffs for a swathe of EU goods gave a late-session boost to European markets.The agreement, struck amid President Donald Trump’s tariffs blitz, will see most EU exports face 15-percent levies. But details released Thursday ended lingering uncertainty over how much European producers would suffer.”This is the most favorable trade deal the US has extended to any partner,” EU trade commissioner Maros Sefcovic said.The news reassured investors in Europe and came on the same day as purchasing managers’ index (PMI) data showed eurozone business activity at a 15-month high in August, while UK activity grew at its fastest pace in a year.Overall, however, worries over the chances for US interest rate cuts loomed over markets. Jerome Powell, chairman of the independent US Federal Reserve, is due to deliver remarks Friday at an annual central bankers conference in Wyoming.He has resisted Trump’s public demands to slash rates so far, as policymakers gauge the effects of the president’s tariffs on consumer prices.All eyes are on his final speech as Fed chair at the Jackson Hole Economic Policy Symposium, before his term ends in May 2026, said Susannah Streeter, head of money and markets at Hargreaves Lansdown.”Although the effect of Trump’s tariffs on monetary policy will be the undercurrent theme, investors will be looking specifically for clues as to the Fed’s inclination to cut interest rates,” she said.Data last week provided a mixed picture of US inflation, leaving it less clear if the Fed will lower rates as many investors expect in September — a move that could bolster growth in the world’s largest economy.A recent sell-off in major tech stocks has added to market uncertainty, as investors grow wary of the sustained rally across the sector since April.The tech-heavy Nasdaq closed lower on Thursday, with shares in AI chip designer Nvidia slightly down after heavy selling in previous sessions ahead of its earnings report next week.Despite the building unease, shares in Seoul closed higher Thursday, bolstered by an uptick in Samsung’s share price.Shanghai, Sydney and Taipei also saw moderate gains.Tokyo’s Nikkei index closed lower, along with Hong Kong.Global markets have also fluctuated recently on the prospects of a peace deal in Ukraine, following days of high-stakes diplomacy in the aftermath of Trump’s Friday meeting with Russian counterpart Vladimir Putin.The diplomatic whirlwind has sparked volatility in oil markets as traders speculate over the possible lifting of sanctions on Russia, a major producer.Oil prices rose again Thursday, following a report the previous day showing a sharp decline in US crude stockpiles.- Key figures at around 2015 GMT -New York – Dow: DOWN 0.3 percent at 44,785.50 points (close)New York – S&P 500: DOWN 0.4 percent at 6,370.17 (close)New York – Nasdaq: DOWN 0.3 percent at 21,100.31 (close)London – FTSE 100: UP 0.2 percent at 9,309.20 (close)Paris – CAC 40: DOWN 0.4 percent at 7,938.29. (close)Frankfurt – DAX: UP 0.1 percent at 24,293.34 (close)Tokyo – Nikkei 225: DOWN 0.7 percent at 42,610.17 (close)Hong Kong – Hang Seng Index: DOWN 0.2 percent at 25,104.61 (close)Shanghai – Composite: UP 0.1 percent at 3,771.10 (close)Euro/dollar: DOWN at $1.1604 from $1.1648 on WednesdayPound/dollar: DOWN at $1.3412 from $1.3452Dollar/yen: UP at 148.37 yen from 147.44 yenEuro/pound: DOWN at 86.52 pence from 86.59 penceWest Texas Intermediate: UP 1.3 percent at $63.52 per barrelBrent North Sea Crude: UP 1.2 percent at $67.67 per barrel

Stock markets mostly fell during cautious trading sessions Thursday, a day before a key speech expected to offer signals about future interest rate cuts in the United States.US Federal Reserve Chairman Jerome Powell, who has resisted President Donald Trump’s public demands to slash rates, is scheduled to deliver remarks Friday at the annual central bankers conference in Wyoming.Major European indices were lower in midday trading, tracking a lacklustre session in Asia, and Wall Street indices opened lower after weakness seen on Wednesday.Investors largely brushed off purchasing managers’ index (PMI) data showing eurozone business activity reached a 15-month high in August, while UK activity grew at its fastest pace in a year.”Eyes are turning to… Powell’s final speech at the Jackson Hole Symposium as Federal Reserve Chair (before his term ends in May 2026),” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.”Although the effect of Trump’s tariffs on monetary policy will be the undercurrent theme, investors will be looking specifically for clues as to the Fed’s inclination to cut interest rates,” she said.Data last week provided a mixed picture of US inflation, leaving it uncertain whether the Fed will lower rates as many investors expect in September — a move that could bolster growth in the world’s largest economy.A recent sell-off in major tech stocks has added to market uncertainty, as investors grow wary of the sustained rally across the sector since April.The tech-heavy Nasdaq fell again on Thursday, though shares in AI chip designer Nvidia were trading flat after heavy selling in previous sessions ahead of its earnings report next week.Despite the building unease, shares in Seoul closed higher Thursday, bolstered by an uptick in Samsung’s share price.Shanghai, Sydney and Taipei also saw moderate gains.Tokyo’s Nikkei index closed lower, along with Hong Kong.Global markets have also fluctuated recently on the prospects of a peace deal in Ukraine, following days of high-stakes diplomacy in the aftermath of Trump’s Friday meeting with Russian counterpart Vladimir Putin.The diplomatic whirlwind has sparked volatility in oil markets as traders speculate over the possible lifting of sanctions on Russia, a major producer.Oil prices rose again Thursday, following a report the previous day showing a sharp decline in US crude stockpiles.- Key figures at around 1340 GMT -New York – Dow: DOWN 0.6 percent at 44,675.02 pointsNew York – S&P 500: DOWN 0.3 percent at 6,374.53New York – Nasdaq: DOWN 0.3 percent at 21,116.06London – FTSE 100: DOWN 0.3 percent at 9,259.45 pointsParis – CAC 40: DOWN 0.6 percent at 7,293.03 Frankfurt – DAX: DOWN 0.2 percent at 24,227.68Tokyo – Nikkei 225: DOWN 0.7 percent at 42,610.17 (close)Hong Kong – Hang Seng Index: DOWN 0.2 percent at 25,104.61 (close)Shanghai – Composite: UP 0.1 percent at 3,770.78 (close)Euro/dollar: DOWN at $1.1639 from $1.1648 on WednesdayPound/dollar: DOWN at $1.3441 from $1.3452Dollar/yen: UP at 147.64 yen from 147.44 yenEuro/pound: DOWN at 86.56 pence from 86.59 penceWest Texas Intermediate: UP 0.1 percent at $63.28 per barrelBrent North Sea Crude: UP 0.1 percent at $66.93 per barrel

The record launch in June for the Nintendo Switch 2, a game console that can be played at home or on the go, heralds a new portable race that Microsoft aims to win with a handheld version of its Xbox.Selling itself as the option for discerning, hardcore gamers, Microsoft’s Xbox ROG Ally console is available to try for the hundreds of thousands of visitors at the Gamescom trade show in Cologne, Germany.The US tech giant said the devices would go on sale from October 16, but has yet to reveal the price.Born of a partnership with Taiwanese hardware heavyweight Asus, the handheld device includes a central screen with two side grips sporting the same array of joysticks, triggers and buttons as a familiar Xbox controller.”We’re really designing and building around an entire ecosystem of devices, to allow people to play where they want, how they want,” Jason Ronald, the Microsoft vice president who heads up console development, told reporters.Microsoft’s console sales have declined and its Game Pass subscription service has yet to convince large numbers of players, pushing the world’s biggest games publisher to seek new sources of growth.- Sights on Valve -At 5.8 million units sold in seven weeks, the Switch 2’s mammoth launch figures have other industry players salivating.But “the Switch 2 has that unique thing of games that are nowhere else”, locking in fans of beloved Nintendo franchises like Mario or Zelda, Rhys Elliott of the data firm Alinea Analytics told AFP.Microsoft’s biggest competitor in the handheld arena is instead another American firm: Valve, which runs the Steam games platform and offers the Steam Deck portable device.Valve says sales of the device have reached several millions since its 2022 launch for the device, which aims at a different market from the Switch.Like the ROG Ally, the Steam Deck was conceived as an on-the-go alternative to a powerful gaming PC.With its portable, Microsoft is targeting “people that already own Xboxes and potentially a PC”, said Christopher Dring, founder of the specialist website The Game Business.”The bigger goal of this is engagement,” he added. “If you can get your players to play your games more, they will spend more” time and money on them even when away from the console in the living room.Elliott agreed that portables are “complementary” devices to existing consoles.- Sony on the sidelines -For now, Japan’s Sony, maker of the PlayStation consoles, is staying out of the portable fight, having withdrawn after 2011’s PlayStation Vita failed to match the success of the 2004-era PlayStation Portable, which scored 76 million sales.Sony never revealed sales figures for the Vita.But in late 2023 it dipped a toe back into the scene with a new PlayStation Portal, which incorporates a screen that lets users play games running on their console at home via internet streaming.With no official sales figures, some industry sources estimate around two million sales for the device.”Remote play still impacts a very small portion of the overall audience, but it’s growing and is showing strong potential for the future,” Mat Piscatella of the gaming data firm Circana has said.Gaming media is already abuzz with rumours about a portable version of a future PlayStation 6 — though Sony’s next-generation console is likely years away.

Stock markets mostly fell during cautious trading sessions on Thursday, one day before a key speech expected to offer signals about future interest rate cuts in the United States.US Federal Reserve Chairman Jerome Powell, who has resisted public demands from President Donald Trump to slash rates, is scheduled to deliver remarks Friday at the annual central bankers conference in Wyoming.Major European indices were lower in midday trading, tracking a lacklustre session in Asia. Markets brushed off purchasing managers’ index (PMI) data showing eurozone business activity reached a 15-month high in August, while UK activity grew at its fastest pace in a year.”Eyes are turning to… Powell’s final speech at the Jackson Hole Symposium as Federal Reserve Chair,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.”Although the effect of Trump’s tariffs on monetary policy will be the undercurrent theme, investors will be looking specifically for clues as to the Fed’s inclination to cut interest rates,” she added.Data last week provided a mixed picture of US inflation, leaving it uncertain whether the Fed will lower rates as many investors expect in September — a move that could bolster growth in the world’s largest economy.A recent sell-off in major tech stocks has added to market uncertainty, as investors grow wary of a sustained rally across the sector.Wall Street closed mostly lower on Wednesday, with the tech-heavy Nasdaq falling again as shares in AI chipmaker Nvidia ticked down.Despite the building unease, shares in Seoul closed higher Thursday, bolstered by an uptick in Samsung’s share price.Shanghai, Sydney and Taipei also saw moderate gains.Tokyo’s Nikkei index closed lower, along with Hong Kong.Global markets have fluctuated recently on the prospects of a peace deal in Ukraine, following days of high-stakes diplomacy in the aftermath of Trump’s Friday meeting with Russian counterpart Vladimir Putin.But hopes for an imminent end to the war — started by Moscow’s invasion over three years ago — were tempered on Wednesday after Russia said it must be included in any discussions on security guarantees for Ukraine.The diplomatic whirlwind has sparked volatility in oil markets as traders speculate over the possible lifting of sanctions on Russia, a major producer.Oil prices rose again Thursday, following a report the previous day showing a sharp decline in US crude stockpiles.- Key figures at around 1040 GMT -London – FTSE 100: DOWN 0.3 percent at 9,259.45 pointsParis – CAC 40: DOWN 0.6 percent at 7,922.03 Frankfurt – DAX: DOWN 0.3 percent at 24,204.62Tokyo – Nikkei 225: DOWN 0.7 percent at 42,610.17 (close)Hong Kong – Hang Seng Index: DOWN 0.2 percent at 25,104.61 (close)Shanghai – Composite: UP 0.1 percent at 3,770.78 (close)New York – Dow: FLAT at 44,938.31 (close)Euro/dollar: UP at $1.1649 from $1.1648 on WednesdayPound/dollar: UP at $1.3468 from $1.3452Dollar/yen: UP at 147.89 yen from 147.44 yenEuro/pound: DOWN at 86.50 pence from 86.59 penceWest Texas Intermediate: UP 0.9 percent at $63.28 per barrelBrent North Sea Crude: UP 0.8 percent at $67.40 per barrel

Markets were varied during cautious trading sessions on Thursday, one day before a key speech expected to offer signals about future interest rate cuts in the United States.US Federal Reserve Chairman Jerome Powell, who has resisted public demands by President Donald Trump to slash rates, is scheduled to deliver remarks Friday at the annual central bankers conference in Wyoming.Data last week provided a mixed picture of US inflation, making it uncertain if the Fed will lower rates as many investors expect in September — which could bolster growth in the world’s largest economy.In a sign of further uncertainty, recent days have seen a sell-off of major technology stocks as investors grow wary of a sustained rally across the sector despite a range of global economic hurdles.Wall Street closed mostly lower on Wednesday, with the tech-heavy Nasdaq falling again as shares in AI chip-maker Nvidia ticked down.Despite the building unease, shares in Seoul closed higher Thursday, bolstered by an uptick in Samsung’s price.Shanghai, Sydney and Taipei also saw moderate gains on the day.Meanwhile, Tokyo’s Nikkei index closed lower for the second day in a row, while shares in Hong Kong finished narrowly down.Morning trading in Europe saw Frankfurt and Paris make slight drops. London was nearly flat.Japan reported Wednesday that the country’s July exports plunged at the steepest rate in over four years, straining under hefty US tariffs.The slump in tech stocks on Wednesday “appeared more like profit-taking than a shift in conviction”, wrote Ahmad Assiri, research strategist at Pepperstone, in a note.”This rotation out of tech suggests a cooling-off phase rather than a wholesale shift in positioning,” he added.Global markets have fluctuated recently on the prospects of a peace deal in Ukraine, following days of high-stakes diplomacy in the aftermath of Trump’s Friday meeting with Russian counterpart Vladimir Putin.But hopes for an imminent end to the war — started by Moscow’s invasion over three years ago — were tempered Wednesday after Russia said it must be included in any discussions on security guarantees for Ukraine.The diplomatic whirlwind has sparked volatility in oil markets as traders speculate over the possible lifting of sanctions on Russia, a major producer.Oil prices continued to rise Thursday on the heels of a report the previous day showing a sharp decline in US crude stockpiles.- Key figures at around 0830 GMT -Tokyo – Nikkei 225: DOWN 0.7 percent at 42,610.17 (close)Hong Kong – Hang Seng Index: DOWN 0.2 percent at 25,104.61 (close)Shanghai – Composite: UP 0.1 percent at 3,770.78 (close)London – FTSE 100: FLAT at 9,291.98Euro/dollar: UP at $1.1656 from $1.1648 on WednesdayPound/dollar: UP at $1.3468 from $1.3452Dollar/yen: UP at 147.58 yen from 147.44 yenEuro/pound: DOWN at 86.55 pence from 86.59 penceWest Texas Intermediate: UP 0.8 percent at $63.20 per barrelBrent North Sea Crude: UP 0.7 percent at $67.29 per barrelNew York – Dow: FLAT at 44,938.31 (close)

Asian markets edged mostly upward in muted morning trading on Thursday, one day before a key speech expected to offer signals about future interest rate cuts in the United States.US Federal Reserve Chairman Jerome Powell, who has resisted public demands by President Donald Trump to cut rates, is scheduled to deliver remarks Friday at the annual central bankers conference in Wyoming.Data last week provided a mixed picture of US inflation, making it uncertain if the Fed will lower rates as many investors expect in September — which could bolster growth in the world’s largest economy.In a sign of further uncertainty, recent days have seen a sell-off of major technology stocks as investors grow wary of a sustained rally in the industry despite a range of global economic hurdles.Wall Street closed mostly lower on Wednesday, with the tech-heavy Nasdaq falling again as shares in AI chip-maker Nvidia ticked down.Despite the building unease, shares in Seoul were up Thursday morning, bolstered by a rise in Samsung’s price.Shanghai, Sydney, Taipei and Bangkok also charted moderate rises.Tokyo’s Nikkei index continued its fall from the previous day, while shares in Hong Kong were flat.Japan reported Wednesday that the country’s July exports plunged at the steepest rate in over four years, straining under hefty US tariffs.Wednesday also saw Hong Kong’s stock exchange operator post record half-year revenue, riding a renewed surge in listings and trading activity in the Chinese finance hub.Global markets have fluctuated recently on the prospects of a peace deal in Ukraine, following days of high-stakes diplomacy in the aftermath of Trump’s Friday meeting with Russian counterpart Vladimir Putin.But hopes for an imminent end to the war — started by Moscow’s invasion over three years ago — were tempered Wednesday after Russia said it must be included in any discussions on security guarantees for Ukraine.The diplomatic whirlwind has sparked volatility in oil markets as traders speculate over the possible lifting of sanctions on Russia, a major producer.Oil prices continued to rise Thursday on the heels of a report the previous day showing a sharp decline in crude stockpiles.- Key figures at around 0215 GMT -Tokyo – Nikkei 225: DOWN 0.4 percent at 42,706.39Hong Kong – Hang Seng Index: FLAT at 25,162.78Shanghai – Composite: UP 0.2 percent at 3,773.56Euro/dollar: DOWN at $1.1647 from $1.1648 on WednesdayPound/dollar: UP at $1.3455 from $1.3452Dollar/yen: DOWN at 147.31 yen from 147.44 yenEuro/pound: DOWN at 86.56 pence from 86.59 penceWest Texas Intermediate: UP 0.5 percent at $63.00 per barrelBrent North Sea Crude: UP 0.4 percent at $67.09 per barrelNew York – Dow: FLAT at 44,938.31 (close)London – FTSE 100: UP 1.1 percent at 9,288.14 (close)

Sony on Wednesday said it is bumping up the price of PlayStation 5 video game consoles by $50 in the United States due to a “challenging economic environment.”Tariffs imposed by President Donald Trump hike the cost of goods brought into the US, leaving companies like Japan’s Sony to decide whether to pass that on to consumers.”Similar to many global businesses, we continue to navigate a challenging economic environment,” Sony Interactive Entertainment vice president of global marketing Isabelle Tomatis said in a post.After initially being threatened with a 25 percent hike, Japan negotiated a 15 percent tariff with the Trump administration.”As a result, we’ve made the difficult decision to increase the recommended retail price for PlayStation 5 consoles in the US.”The new price for PS5 will be $550, with a “Digital Edition” priced at $500 and a Pro version for $750, according to Tomatis. In May, Sony warned it was considering tweaking prices in the US, estimating that tariffs could wind up costing the company about $680 million in the fiscal year.  American companies are feeling the crunch, too.New York-based cosmetics giant Estee Lauder recently estimated the impact of the new tariffs at around $100 million for the 2026 financial year and plans to adjust its prices to offset the additional cost.US snack giant PepsiCo could increase prices of its soft drinks about 10 percent to mitigate effects of US tariffs, particularly those on imported aluminum used to make soda cans, according to trade magazine Beverage Digest.Meanwhile, California-based energy drink maker Monster Beverages is considering raising prices due to a “complex and dynamic customs landscape,” according to chief executive Hilton Schlosberg.The Commerce Department this week said the US broadened its steel and aluminum tariffs, impacting hundreds more products that contain both metals such as child seats, tableware and heavy equipment.Since returning to the presidency, Trump has imposed tariffs on almost all US trading partners.Though the impact of Trump’s tariffs on consumer prices has been limited so far, economists warn that their full effects are yet to be seen.Some businesses have coped by bringing forward purchases of products they expected will encounter tariffs. Others have passed on additional costs to their consumers, or absorbed a part of the fresh tariff burden.