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A deal for the Chinese parent company of popular video-sharing app TikTok to sell its US operations would see the creation of a board dominated by Americans, the White House said Saturday.”There will be seven seats on the board that controls the app in the United States, and six of those seats will be Americans,” White House press secretary Karoline Leavitt told Fox News.She said a deal could be signed “in the coming days.”The United States has forcefully sought to take TikTok’s US operations out of the hands of Chinese parent company ByteDance for national security reasons.Under President Donald Trump’s predecessor Joe Biden, the US Congress passed a law to force ByteDance to sell its US operations or face a ban of the app.US policymakers, including in Trump’s first term, have warned that China could use TikTok to mine data from Americans or exert influence on what they see on social media.But Trump turned to the platform, which is hugely popular with young Americans, to garner support during his ultimately successful 2024 presidential campaign.The Republican president has repeatedly pushed off implementation of the ban while a deal has been sought.Investors reportedly being eyed to take over the app include Oracle, the tech firm owned by Larry Ellison, one of the world’s richest people — and a major Trump supporter.Leavitt seemed to confirm Oracle’s participation.”The data and privacy will be led by one of America’s greatest tech companies, Oracle, and the algorithm will also be controlled by America as well,” she told Fox News.”So all of those details have already been agreed upon. Now we just need this deal to be signed.”Trump and Chinese President Xi Jinping discussed the matter in a phone call on Friday.Trump said that Xi “approved” the deal during the phone call but then said, “We have to get it signed.” China did not confirm any agreement.”We’re going to have a very, very tight control,” Trump said. “There’s tremendous value with TikTok, and I’m a little prejudiced because I frankly did so well on it.”The Wall Street Journal, quoting sources familiar with the talks, reported that the US government could receive a multi-billion-dollar fee from investors as part of the deal.

India’s leading IT trade body said on Saturday it was concerned by a new annual $100,000 fee that US President Donald Trump ordered for H-1B skilled worker visas, an addition that could have major repercussions for the tech industry where such permits are widespread.The foreign ministry in New Delhi also said the new measure, which will likely face legal challenges, would cause “disruption” for the families of H-1B visa holders.Such visas allow companies to sponsor foreign workers with specialised skills — such as scientists, engineers, and computer programmers — to work in the United States, initially for three years but extendable to six.The United States awards 85,000 H-1B visas per year on a lottery system, with India accounting for around three-quarters of the recipients.India’s top IT industry body Nasscom said the new measure would hit “business continuity” and was also concerned by the short timeline, with the new fee coming into effect on Sunday.”A one-day deadline creates considerable uncertainty for businesses, professionals, and students across the world,” Nasscom said in a statement.”Policy changes of this scale are best introduced with adequate transition periods, allowing organisations and individuals to plan effectively and minimise disruption,” it said.Trump announced the change in Washington on Friday, along with the introduction of a $1 million “gold card” residency programme he had previewed months earlier.”The main thing is, we’re going to have great people coming in, and they’re going to be paying,” Trump told reporters as he signed the orders in the Oval Office.India’s foreign ministry said the mobility of skilled talent had contributed to “technology development, innovation, economic growth, competitiveness and wealth creation” in both countries and that it would assess the changes.It said in a statement the new measure would likely have “humanitarian consequences by way of the disruption caused for families”, which it hoped would be addressed by US authorities.- Not enough homegrown talent -Large technology firms rely on Indian workers who either relocate to the United States or come and go between the two countries.US bank JPMorgan confirmed that a memo had been sent to its employees with H-1B visas advising them to remain in the United States and avoid international travel until further guidance was issued.Tech entrepreneurs — including Trump’s former ally Elon Musk — have warned against targeting H-1B visas, saying that the United States does not have enough homegrown talent to fill important tech sector job vacancies.However, Commerce Secretary Howard Lutnick, who joined Trump in the Oval Office, said: “All the big companies are on board.”Trump has had the H-1B program in his sights since his first term in office, but faced court challenges to his earlier approach, which targeted the types of jobs that qualify.The current iteration has become the latest move in the major immigration crackdown of his second term.The number of H-1B visa applications has risen sharply in recent years, with a peak in approvals in 2022 under Democratic president Joe Biden.In contrast, the peak in rejections was recorded in 2018, during Trump’s first term in the White House.The United States approved approximately 400,000 H-1B visas in 2024, two-thirds of which were renewals.Trump also signed an order on Friday creating a new expedited pathway to US residency for people who pay $1 million, or for corporate sponsors to pay $2 million.”I think it’s going to be tremendously successful,” he said.South Korea’s foreign ministry said in a statement on Saturday officials would “comprehensively assess the impact of these measures on the advancement of (South Korean) companies and professional talents into the US market and engage in necessary communication with the US”.Hundreds of South Koreans were detained during a US immigration raid on a Hyundai-LG battery factory site in the state of Georgia this month.

US President Donald Trump on Friday ordered an annual $100,000 fee be added to H-1B skilled worker visas, creating potentially major repercussions for the tech industry where such permits are prolific.The new measure, which could likely face legal challenges, was announced alongside the introduction of a $1 million “gold card” residency program that Trump had previewed months earlier.”The main thing is, we’re going to have great people coming in, and they’re going to be paying,” Trump told reporters as he signed the orders in the Oval Office.H-1B visas allow companies to sponsor foreign workers with specialized skills — such as scientists, engineers, and computer programmers — to work in the United States, initially for three years, but extendable to six years.The United States awards 85,000 H-1B visas per year on a lottery system, with India accounting for around three-quarters of the recipients.Large technology firms rely on Indian workers who either relocate to the United States or come and go between the two countries.Tech entrepreneurs — including Trump’s former ally Elon Musk — have warned against targeting H-1B visas, saying that the United States does not have enough homegrown talent to fill important tech sector job vacancies.”All the big companies are on board,” said Commerce Secretary Howard Lutnick, who joined Trump in the Oval Office.Trump has had the H-1B program in his sights since his first term in office, but faced court challenges to his earlier approach, which targeted the types of jobs that qualify. The current iteration has become the latest move in the major immigration crackdown of his second term.According to Trump’s order, the fee will be required for those seeking to enter the country beginning Sunday, with the Homeland Security secretary able to exempt individuals, entire companies, or entire industries.The order expires in a year, though Trump can extend it.The number of H-1B visa applications has risen sharply in recent years, with a peak in approvals in 2022 under Democratic president Joe Biden.In contrast, the peak in rejections was recorded in 2018, during Trump’s first term in the White House.The United States approved approximately 400,000 H-1B visas in 2024, two-thirds of which were renewals.Trump also signed an order creating a new expedited pathway to US residency for people who pay $1 million, or for corporate sponsors to pay $2 million.”I think it’s going to be tremendously successful,” Trump added.South Korea’s foreign ministry said in a statement on Saturday that officials would “comprehensively assess the impact of these measures on the advancement of (South Korean) companies and professional talents into the US market and engage in necessary communication with the US.”Hundreds of South Koreans were detained during a US immigration raid on a Hyundai-LG battery factory site in the state of Georgia earlier this month.

US President Donald Trump hailed on Friday a call with Chinese counterpart Xi Jinping, claiming a deal to sell blockbuster app TikTok could be a “formality” and saying he would visit China, which gave a more cautious assessment of their talks.The leaders of the world’s two largest economies spoke by telephone for the second time since the return to the White House of Trump, who has tried to keep a lid on tensions despite his once virulent criticism of China.The United States has forcefully sought to take TikTok, the social media platform hugely popular with young Americans that Trump has also used to garner support, out of Chinese hands.Trump said that Xi “approved” the deal during the phone call, but later said: “We have to get it signed… I guess it could be a formality.” China did not confirm any agreement.”We’re going to have a very, very tight control,” Trump said. “There’s tremendous value with TikTok, and I’m a little prejudiced because I frankly did so well on it.”He also said that Xi promised to work with the United States on ending the war in Ukraine, where China is accused by Western nations of indirectly supporting Russia’s invasion, even though Beijing says it is a neutral party.Trump said earlier in a post on Truth Social that he and Xi “made progress on many very important issues” including TikTok.He said he would meet Xi on the sidelines of an Asia-Pacific Economic Cooperation summit in South Korea starting at the end of next month and that he would travel to China next year.Trump said Xi would also visit the United States at an unspecified time and that the two leaders would speak again by telephone.- Chinese warning on ‘market rules’ -China offered a sterner take on the talks.”On the TikTok issue, Xi noted that China’s position is clear: the Chinese government respects the will of enterprises and welcomes them to conduct business negotiations based on market rules, to reach solutions that balance interests and comply with Chinese laws and regulations,” a statement said.”China hopes the US side will provide an open, fair, and non-discriminatory business environment for Chinese companies investing in the United States,” it added.It described the call as “frank and in-depth.”Last year, during Joe Biden’s presidency, the US Congress passed a law to force TikTok’s parent company ByteDance to sell its US operations or face the app’s ban, citing national security concerns.US policymakers, including in Trump’s first term, have warned that China could use TikTok to mine data from Americans or exert influence on what they see on social media.But Trump, an avid social media user, on Tuesday once again put off a ban of the app.In a statement early on Saturday, ByteDance thanked Xi and Trump “for their concern about TikTok.””ByteDance will move forward with the relevant work in accordance with Chinese law, ensuring that TikTok US continues to serve its vast American user base,” the company said.Investors reportedly being eyed to take over the app include Oracle, the tech firm owned by Larry Ellison, one of the world’s richest people.Ellison is a supporter of Trump, meaning TikTok could become the latest media or social media app to come under the influence of the president.- China ‘hardball’ -Wendy Cutler, a former US trade official who is now senior vice president of the Asia Society Policy Institute, said that many details, including who would control the algorithm powering TikTok, were still unclear and many other irritants remained.”Beijing is displaying a willingness to play hardball, and a need to get paid by Washington for any concessions it makes,” she said.While on the campaign trail, Trump bashed China relentlessly as an enemy, but since returning to office he has spoken of his strong relationship with Xi.Both sides dramatically hiked tariffs against each other during a months-long dispute earlier this year, disrupting global supply chains.Washington and Beijing then reached a deal to reduce levies, with the United States imposing 30 percent duties on imports of Chinese goods and China hitting US products with a 10 percent tariff. The deal expires in November.The phone talks came after Trump accused Xi of conspiring against the United States with a major military parade to mark the end of World War II that brought the leaders of Russia and North Korea to Beijing.The Chinese statement said Xi voiced appreciation to Trump for the US role in World War II.burs-sct/sla/mjw/fox

Stock markets steadied and the dollar mostly rose Friday at the end of a week marked by central bank decisions, as attention turned to a call between US President Donald Trump and his Chinese counterpart Xi Jinping.Wall Street’s three main indices finished the week at records for the second day in a row, extending a rally after the Federal Reserve cut interest rates on Wednesday for the first time in 2025.”Traders are satisfied” with the Fed’s decision, said FHN Financial’s Chris Low.The Fed on Wednesday lowered interest rates by 25 basis points and signaled it could cut two more times in 2025. The central bank explained its move as a response to weaker job data, adding that future decisions would depend on how the economy evolves.But Jack Ablin of Cresset Capital Management noted that the rise in US Treasury yields represents a source of concern.”I’m going to celebrate the equity records but the market is expensive and the 10-year yields is moving higher,” Ablin said. “That’s something we need to pay attention to.”Earlier, Europe’s main indices ended the day little changed or slightly lower.Markets greeted a phone call between US President Donald Trump and Chinese President Xi Jinping that included discussion on selling blockbuster app TikTok.Shortly before European markets closed, Trump said he made progress in his call on  a deal for the social networking platform TikTok, though he stopped short of announcing a deal.”We made progress on many very important issues including Trade, Fentanyl, the need to bring the War between Russia and Ukraine to an end, and the approval of the TikTok Deal,” Trump wrote on his Truth Social platform.He has repeatedly put off a ban under a law designed to force TikTok’s Chinese parent company ByteDance to sell its US operations for national security reasons.The call came after high-level discussions between Washington and Beijing officials in Madrid, where they addressed trade ahead of a November tariff deadline.Trump said Friday that he would meet Xi at an Asia-Pacific summit in South Korea in just over a month, and visit China himself next year.Meanwhile, the British pound retreated after official data showed that UK government borrowing had reached its highest level since the Covid pandemic. In Asia, Tokyo led losses among major indices on expectations that Japan’s central bank would hike interest rates this year after leaving borrowing costs unchanged Friday.Before the announcement, official data showed that inflation in Japan, the world’s fourth-largest economy, slowed in August, with rice price increases easing following a spike that had rattled the country’s government.Among individual companies, Apple jumped 3.2 percent as the tech giant’s launch of new iPhones was greeted with long lines at retail outlets, suggesting strong demand for the devices.- Key figures at around 2030 GMT -New York – Dow: UP 0.4 percent at 46,315.27 (close)New York – S&P 500: UP 0.5 percent at 6,664.36 (close)New York – Nasdaq Composite: UP 0.7 percent at 22,631.48 (close)London – FTSE 100: DOWN 0.1 percent at 9,216.67 (close)Paris – CAC 40: FLAT at 7,853.59 (close)Frankfurt – DAX: DOWN 0.2 percent at 23,639.41 (close)Tokyo – Nikkei 225: DOWN 0.6 percent at 45,045.81 (close)Hong Kong – Hang Seng Index: FLAT at 26,545.10 (close)Shanghai – Composite: DOWN 0.3 percent at 3,820.09 (close)Euro/dollar: DOWN at $1.1745 from $1.1788 on ThursdayPound/dollar: DOWN at $1.3472 from $1.3555Dollar/yen: DOWN at 147.90 yen from 148.00 yenEuro/pound: UP at 87.18 pence from 86.96 penceBrent North Sea Crude: DOWN 1.1 percent at $66.68 per barrelWest Texas Intermediate: DOWN 1.4 percent at $62.68 per barrelburs-jmb/des

Stock markets steadied and the dollar mostly rose Friday at the end of a week marked by central bank decisions, as attention turned to a call between US President Donald Trump and his Chinese counterpart Xi Jinping.Wall Street’s three main indices were flat or slightly higher in late morning trading, coming off record closes Thursday thanks to another surge in the share prices of technology giants.Europe’s main indices ended the day little changed or slightly lower.”The key event today is the scheduled phone call between US President Trump and Chinese President Xi Jinping,” Sam Cornford, head of trading at broker Ballinger Group, said ahead of the discussion between the leaders of the world’s two leading economies.Shortly before European markets closed, Trump said he made progress in his call on on a deal for the social networking platform TikTok, though he stopped short of announcing a deal.”We made progress on many very important issues including Trade, Fentanyl, the need to bring the War between Russia and Ukraine to an end, and the approval of the TikTok Deal,” Trump wrote on his Truth Social platform.He has repeatedly put off a ban under a law designed to force TikTok’s Chinese parent company ByteDance to sell its US operations for national security reasons.The call came after high-level discussions between Washington and Beijing officials in Madrid, where they addressed trade ahead of a November tariff deadline.Trump said Friday that he would meet Xi at an Asia-Pacific summit in South Korea in just over a month, and visit China himself next year.Trump imposed massive tariffs on China earlier this year, causing severe disruption to the supply chains of many US firms.While the tariffs were lowered temporarily, their lapse could trigger fresh volatility as the US economy shows signs of weakness.Meanwhile, the British pound retreated after official data showed that UK government borrowing had reached its highest level since the Covid pandemic. In Asia, Tokyo led losses among major indices on expectations that Japan’s central bank would hike interest rates this year after leaving borrowing costs unchanged Friday.Before the announcement, official data showed that inflation in Japan, the world’s fourth-largest economy, slowed in August, with rice price increases easing following a spike that had rattled the country’s government.The week also saw a widely expected interest rate cut from the US Federal Reserve as well as reductions by the central banks of Norway and Canada.The Bank of England left its benchmark rates unchanged. – Key figures at around 1530 GMT -New York – Dow: FLAT at 46,127.99 pointsNew York – S&P 500: FLAT at 6,632.74 New York – Nasdaq Composite: UP 0.2 percent at 22,507.25London – FTSE 100: DOWN 0.1 percent at 9,216.67 (close)Paris – CAC 40: FLAT at 7,853.59 (close)Frankfurt – DAX: DOWN 0.2 percent at 23,639.41 (close)Tokyo – Nikkei 225: DOWN 0.6 percent at 45,045.81 (close)Hong Kong – Hang Seng Index: FLAT at 26,545.10 (close)Shanghai – Composite: DOWN 0.3 percent at 3,820.09 (close)Euro/dollar: DOWN at $1.1743 from $1.1785 on ThursdayPound/dollar: DOWN at $1.3476 from $1.3550Dollar/yen: DOWN at 147.90 yen from 147.97 yenEuro/pound: UP at 87.14 pence from 86.96 penceBrent North Sea Crude: DOWN 0.8 percent at $66.92 per barrelWest Texas Intermediate: DOWN 0.8 percent at $63.09 per barrelburs-rl/js

Tariff fears are hurting World Cup merchandise orders at Shang Yabing’s Chinese knitwear factory, where racks of scarves bear the logos of national teams from Ireland to Tanzania.Manufacturers in China’s export hub Yiwu would normally already be inundated with World Cup orders ahead of next summer’s football tournament, this time hosted by the United States, Mexico and Canada.But a rollercoaster ride of a trade war between Washington and Beijing is making international buyers think twice before placing orders with companies like Shang’s Yiwu Wells Knitting Product.When AFP visited his bustling workrooms, Shang was overseeing rows of colleagues adding the finishing touches to a plethora of sports-themed accessories.”We’ve been in this industry for over 10 years, and we’ve produced World Cup-related merchandise for nearly every tournament in that time,” Shang said.”This year, we’ve secured some smaller orders, but the larger ones that were on hold before haven’t materialised yet… this is likely because of the US tariffs,” he added.At the factory on Thursday, crates overflowing with colourful wares surrounded employees’ workstations.Some workers used sewing machines to attach fringe trims to the ends of scarves, while another ironed green and yellow lengths of fabric emblazoned with the word “Australian”.China and the United States have extended a temporary truce, staving off triple-digit tariffs on each other’s goods until November, but the two sides continue to spar over semiconductors and TikTok.With a little under nine months to go before the World Cup, Shang said the company was still waiting for clients to approve substantial orders amounting to around a million pieces.- ‘Lack of clarity’ -Along the fluorescent-lit hallways of Yiwu’s sprawling International Trade City, one of the world’s largest wholesale markets, stores offering soccer balls and flags were relatively quiet compared to the rush of foreign buyers the sales hub sees during peak periods.Vendors displayed everything from flag-printed sunglasses to miniature football cleats hanging on keychains.”By this point before the last World Cup, we saw a huge influx of orders,” Daisy Dai, a seller of printed soccer balls, told AFP. This year, she said, “customers are holding back”.American buyers previously made up a large part of Dai’s clientele but “since the start of the trade war a number of large brands stopped ordering, because of a lack of clarity on tariffs”.Zhou Yanjuan, a seller of flags and World Cup-themed souvenirs, told AFP that shipments abroad had slowed for her.”We’re not selling necessities after all,” Zhou said.Still, she was optimistic that “things will gradually improve going forward”.”Everyone’s probably waiting for (tariffs) to be adjusted downward,” Zhou said. “That could make things a little easier for us.”

Stock markets diverged and the dollar rose Friday at the end of a week marked by central bank decisions, as attention turned to a call between US President Donald Trump and Chinese counterpart Xi Jinping.Nearing the half-way stage in Europe, London and Paris edged higher while Frankfurt dipped. The British pound retreated after official data showed UK government borrowing had reached its highest level since the Covid pandemic. Tokyo led losses among major Asian indices on expectations that Japan’s central bank would hike interest rates later this year after leaving borrowing costs unchanged Friday.Before the announcement, official data showed inflation in Japan — the world’s fourth-largest economy — slowed in August, with rice price rises easing following a sharp spike that had rattled the country’s government.The week saw a widely expected interest rate cut from the US Federal Reserve, as well as reductions by the central bank’s of Norway and Canada.The Bank of England left rates unchanged. “The key event today is the scheduled phone call between US President Trump and Chinese President Xi Jinping,” said Sam Cornford, head of trading at broker Ballinger Group. Trump told reporters he would speak to Xi about a deal to change ownership of the hugely popular video-sharing app TikTok.The US president has repeatedly put off a ban under a law designed to force TikTok’s Chinese parent company ByteDance to sell its US operations for national security reasons.”Trade issues are also likely to come up, and there’s some speculation this could pave the way for an in-person meeting,” Cornford added.The call comes after high-level discussions between Washington and Beijing officials in Madrid, where they addressed trade ahead of a November tariff deadline.All three main Wall Street indices ended Thursday at record highs, thanks to another surge in the share prices of technology giants.That came after news that chip titan Nvidia will invest $5 billion in struggling US rival Intel and jointly develop processors for PCs and data centres.- Key figures at around 1100 GMT -London – FTSE 100: UP 0.1 percent at 9,234.49 pointsParis – CAC 40: UP 0.3 percent at 7,874.83Frankfurt – DAX: DOWN 0.2 percent at 23,635.08Tokyo – Nikkei 225: DOWN 0.6 percent at 45,045.81 (close)Hong Kong – Hang Seng Index: FLAT at 26,545.10 (close)Shanghai – Composite: DOWN 0.3 percent at 3,820.09 (close)New York – Dow: UP 0.3 percent at 46,142.42 (close)Euro/dollar: DOWN at $1.1759 from $1.1785 on ThursdayPound/dollar: DOWN at $1.3495 from $1.3550Dollar/yen: UP at 147.99 yen from 147.97 yenEuro/pound: UP at 87.15 pence from 86.96 penceBrent North Sea Crude: DOWN 0.3 percent at $67.23 per barrelWest Texas Intermediate: DOWN 0.6 percent at $62.91 per barrel

Asian markets were mixed Friday at the end of a strong week for investors following a US interest rate cut, with attention now turning to a call between Donald Trump and Xi Jinping due later in the day.Adding to selling pressure were expectations that Japan’s central bank would hike interest rates later this year, despite holding them at its latest meeting.While the Federal Reserve and boss Jerome Powell were not as forthright as hoped on future rate reductions, the mood on trading floors remained upbeat.The US central bank lowered borrowing costs Wednesday for the first time since December after a series of reports pointed to a slowdown in the country’s labour market, which offset stubbornly high inflation.A closely watched gauge of future moves indicated two more this year, but Powell warned decisions would be data-dependent. With that in mind, even figures showing a sharp drop in initial jobless claims for last week did little to dampen expectations that rates will continue to be cut.”The underlying trend remains one of only a gentle drift higher in claims, reinforcing the view that the US labour market is not showing signs of sudden weakness,” said National Australia Bank’s Rodrigo Catril.All three main indexes ended Thursday at records, continuing a trend that has characterised markets in recent months, thanks to another surge in tech giants.That came after news that chip titan Nvidia will invest $5 billion in struggling US rival Intel and jointly develop processors for PCs and data centres.Asian traders moved cautiously in the morning, but selling picked up after the Bank of Japan’s latest meeting.Monetary policymakers kept rates on hold but only after a surprise 7-2 vote that indicated two members wanted a hike. That boosted bets on such a move before the end of the year.The move came amid lingering political uncertainty and economic concerns fuelled by US tariffs.The bank also said it would start offloading exchange-traded funds bought as part of its earlier monetary easing campaign that had helped boost equities.Catril said the dissenters were “a strong signal that the BOJ will be hiking once political uncertainty is removed”.Before the announcement, official data showed inflation in the fourth-largest economy slowing to 2.7 percent in August, with rice price rises easing following a sharp spike that rattled the government.Traders are now awaiting a news conference from bank boss Kazuo Ueda due later in the day.Tokyo ended in the red, having enjoyed a strong start to the day. There were also losses in Shanghai, Singapore, Seoul, Taipei, Mumbai and Jakarta, while Hong Kong was flat.Sydney, Wellington, Bangkok and Manila rose with London, Paris and Frankfurt.Talks between president Trump and Chinese counterpart Xi — their first since June — are due to take place later Friday, with the US president telling reporters they would discuss a deal to change ownership of the hugely popular video-sharing app TikTok.The phone call also comes after high level officials from both sides met in Madrid where they spoke about trade between the economic superpowers, with the deadline for a US tariff pause approaching in November.- Key figures at around 0810 GMT -Tokyo – Nikkei 225: DOWN 0.6 percent at 45,045.81 (close)Hong Kong – Hang Seng Index: FLAT at 26,545.10 (close)Shanghai – Composite: DOWN 0.3 percent at 3,820.09 (close)London – FTSE 100: UP 0.1 percent at 9,233.69 Euro/dollar: DOWN at $1.1761 from $1.1785 on ThursdayPound/dollar: DOWN at $1.3485 from $1.3550Dollar/yen: UP at 147.91 yen from 147.97 yenEuro/pound: UP at 87.22 pence from 86.96 penceWest Texas Intermediate: DOWN 0.4 percent at $63.29 per barrelBrent North Sea Crude: DOWN 0.3 percent at $67.27 per barrelNew York – Dow: UP 0.3 percent at 46,142.42 (close)

The Bank of Japan kept interest rates on hold Friday amid lingering political uncertainty and economic concerns but said it would start offloading funds bought as part of its earlier monetary easing campaign.The announcement came hours after official data showed inflation in the fourth-largest economy slowed to 2.7 percent in August, with rice price rises slowing following a sharp spike that rattled the government.In a widely expected decision the central bank decided against hiking borrowing costs, keeping them at 0.5 percent, but said it would begin reducing its exchange-traded fund and real estate investment trust holdings.The BoJ began buying the funds — in a bid to boost liquidity and reduce the cost of capital for firms, among other things — more than a decade ago as part of its campaign to kickstart the torpid economy and end years of almost non-existent inflation.Officials began hiking rates from below zero in March last year as figures signalled an end to the country’s “lost decades” of stagnation, with inflation surging.However, with worries about the global outlook and US tariffs growing, the bank paused its tightening measures at the start of 2025, with the last increase in January, taking rates to their highest level in 17 years.The yen rose against the dollar but Tokyo’s Nikkei 225 index fell around 0.5 percent.In a statement following Friday’s announcement, the BoJ said: “Japan’s economic growth is likely to moderate, as trade and other policies in each jurisdiction lead to a slowdown in overseas economies and to a decline in domestic corporate profits and other factors.”Japanese exports to the United States face a 15 percent levy imposed by President Donald Trump’s administration, causing huge pain for the nation’s industries, particularly the auto sector.But BoJ governor Kazuo Ueda told a news conference that “although US tariffs are having a negative impact, particularly on the revenues of the manufacturing industry, so far they don’t appear to be affecting the economy as a whole including capital investment, employment and wages”.- Leadership race -The rate decision was carried by seven votes to two, with the dissent described as “a bit of surprise” by Tsuyoshi Ueno of NLI Research Institute.”Governor Ueda has said he wants to see the impact of Trump tariffs, but maybe there is a division in their opinions, as inflation continues,” he told AFP.The move comes as the ruling Liberal Democratic Party (LDP) prepares for an election for a new leader following the resignation of Prime Minister Shigeru Ishiba.The government has come under pressure from voters angry about the rising cost of rice and Ishiba’s coalition lost its majority in both chambers. A race for his successor will be decided on October 4. Figures Friday showed core inflation — stripping out food costs –hit 2.7 percent in August.While that was down on July’s 3.1 percent, it is still well above the BoJ’s target of two percent, and analysts have said the bank will likely announce another hike this year or in early 2026.Rice prices had skyrocketed because of supply problems linked to a very hot summer in 2023 and panic-buying after a “megaquake” warning last year, amongst other factors.Abhijit Surya of Capital Economics said the main factor behind the fall in inflation was “a deepening of energy price deflation… due to the resumption of electricity and gas subsidies”.But Taro Kimura, an analyst with Bloomberg Economics, said a pullback in inflation “won’t change the big picture”.”Consumer prices will remain warm enough to keep the Bank of Japan on track to pare stimulus, likely as soon as October,” he added.