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China is counting on one crucial advantage as it seeks to grind out a deal to ease its high-stakes trade war with the United States — dominance in rare earths.Used in electric vehicles, hard drives, wind turbines and missiles, rare earth elements are essential to the modern economy and national defence.AFP takes a look at how rare earths have become a key sticking point in talks between the US and China.- Mining boom -“The Middle East has oil. China has rare earths,” Deng Xiaoping, the late Chinese leader whose pro-market reforms set the country on its path to becoming an economic powerhouse, said in 1992.Since then, Beijing’s heavy investment in state-owned mining firms and lax environmental regulations compared to other industry players have turned China into the world’s top supplier.The country now accounts for 92 percent of global refined output, according to the International Energy Agency.But the flow of rare earths from China to manufacturers around the world has slowed after Beijing in early April began requiring domestic exporters to apply for a licence — widely seen as a response to US tariffs.Under the new requirements — which industry groups have said are complex and slow-moving — seven key elements and related magnets require Beijing’s approval to be shipped to foreign buyers.- Deep impact -Ensuring access to the vital elements has become a top priority for US officials in talks with Chinese counterparts, with the two sides meeting this week in London.”The rare earth issue has clearly… overpowered the other parts of the trade negotiations because of stoppages at plants in the United States,” said Paul Triolo, a technology expert at the Asia Society Policy Institute’s Center for China Analysis, in an online seminar on Monday.That disruption, which forced US car giant Ford to temporarily halt production of its Explorer SUV, “really got the attention of the White House”, said Triolo.Officials from the two countries said Tuesday that they had agreed on a “framework” for moving forward on trade — with US Commerce Secretary Howard Lutnick expressing optimism that concerns over access to rare earths “will be resolved” eventually.- Rare earth advantage -The slowing of licence issuance has raised fears that more automakers will be forced to halt production while they await shipments.China’s commerce ministry said over the weekend that as a “responsible major country” it had approved a certain number of export applications, adding that it was willing to strengthen related dialogue with “relevant countries”.But that bottleneck has highlighted Washington’s reliance on Chinese rare earths for producing its defence equipment even as trade and geopolitical tensions deepen.An F-35 fighter jet contains over 900 pounds (more than 400 kilograms) of rare earth elements, noted a recent analysis by Gracelin Baskaran and Meredith Schwartz of the Critical Minerals Security Program at the Center for Strategic and International Studies.”Developing mining and processing capabilities requires a long-term effort, meaning the United States will be on the back foot for the foreseeable future,” they wrote.- Playing catch up -The recent export control measures are not the first time China has leveraged its dominance of rare earths supply chains.After a 2010 maritime collision between a Chinese trawler and Japanese coast guard boats in disputed waters, Beijing briefly halted shipments of its rare earths to Tokyo.The episode spurred Japan to invest in alternative sources and improve  stockpiling of the vital elements — with limited success.That is “a good illustration of the difficulty of actually reducing dependence on China”, said Triolo, noting that in the 15 years since the incident, Japan has achieved only “marginal gains”.The Pentagon is trying to catch up, with its “mine-to-magnet” strategy aiming to ensure an all-domestic supply chain for the key components by 2027.The challenge facing Washington to compete with Beijing in rare earths is compounded by sheer luck: China sits on the world’s largest reserves.”Mineable concentrations are less common than for most other mineral commodities, making extraction more costly,” wrote Rico Luman and Ewa Manthey of ING in an analysis published Tuesday.”It is this complex and costly extraction and processing that make rare earths strategically significant,” they wrote.”This gives China a strong negotiating position.”

Stock markets rose Wednesday as investors welcomed a China-US agreement to lower trade tensions that stoked hopes the economic superpowers will eventually reach a broader tariff deal.After two days of closely watched talks in London, the two sides said they had set up a framework to move towards a pact, following negotiations in Geneva last month that saw them slash tit-for-tat levies.The news provided some relief to markets after US President Donald Trump accused Beijing of violating that deal.”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. Paris and Frankfurt enjoyed modest gains in midday deals.London edged higher also as investors awaited finer details of the UK government’s latest spending and investment decisions due Wednesday.Asian stock markets won a lift on the China-US progress, with Hong Kong among the best performers. Analysts said investors would be keen to get a closer look of the agreement’s details.”There’s perhaps a little disappointment… that we haven’t yet got a bigger announcement, even though there’s time to hear the full conclusions of the meeting,” said Deutsche Bank economist Jim Reid. 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.China said the trade talks made new progress, and vice premier He Lifeng stressed the need for Beijing and Washington to strengthen cooperation.US Commerce Secretary Howard Lutnick said he was upbeat that concerns over rare earths “will be resolved” eventually, as the agreement is implemented.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.In a speech in Beijing, European Central Bank chief Christine Lagarde called for a de-escalation in the tariffs standoffs, warning that “coercive trade policies” risked harming supply chains and the global economy.”Once the US reaches an agreement with China, we expect the EU to be next in line,” said Kathleen Brooks, research director at trading group XTB, referring to US-EU negotiations to avert steeper tariffs next month.Investors also awaited US inflation data due Wednesday, which analysts expect to reinforce the Federal Reserve’s slower pace of interest rate cuts. The dollar was mixed against main rivals ahead of the release, while oil prices firmed.In company news Wednesday, shares in Zara owner Inditex fell more than three percent in Madrid, after the world’s biggest fashion retailer posted disappointing first quarter sales. – Key figures at around 1040 GMT -London – FTSE 100: UP 0.1 percent at 8,859.25 pointsParis – CAC 40: UP 0.3 percent at 7,823.94 Frankfurt – DAX: UP 0.2 percent at 24,046.23Tokyo – 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)New York – Dow: UP 0.3 percent at 42,866.87 (close)Euro/dollar: UP at $1.1438 from $1.1426 on TuesdayPound/dollar: DOWN at $1.3495 from $1.3501Dollar/yen: UP at 145.13 yen from 144.88 yenEuro/pound: UP at 84.76 pence from 84.61 penceBrent North Sea Crude: UP 1.2 percent at $67.68 per barrelWest Texas Intermediate: UP 1.5 percent at $65.94 per barrel

Cash-strapped Sri Lanka on Wednesday announced a 15 percent increase in the electricity price to shore up revenues for the state-run utility, in line with conditions imposed by an IMF bailout.The Public Utilities Commission said it allowed the Ceylon Electricity Board (CEB) to charge the higher rates from Thursday, six months after a controversial reduction that pushed the utility into the red.The government had forced a 20 percent price cut on the CEB in January, despite fears that it would cause the government-owned company to lose money and undermine the national budget.Ensuring cost-recovery and doing away with subsidies is in line with the conditions set by the International Monetary Fund, which granted a four-year, $2.9 billion loan to help salvage Sri Lanka’s economy.The country had declared bankruptcy after defaulting on its $46 billion foreign debt in April 2022, having run out of foreign exchange to finance even the most essential imports, such as food, fuel and medicines.Months of protests over shortages led to the toppling of then-president Gotabaya Rajapaksa in July 2022.His successor, Ranil Wickremesinghe, secured the IMF bailout and proceeded to cut subsidies and raise taxes.Wickremesinghe lost the September election, but his successor, Anura Kumara Dissanayake, is pushing ahead with the IMF-backed reforms.Inflation, which peaked at nearly 70 percent in September 2022, has dropped sharply, and the country has been experiencing deflation since September.The IMF says Sri Lanka is slowly emerging from its worst meltdown and that the economy has turned around, although risks remain.

China’s vice premier and top trade negotiator said Beijing was ready to “strengthen cooperation” with Washington, Chinese state media said Wednesday, following trade talks in London it said had made substantial progress.US Commerce Secretary Howard Lutnick expressed optimism after a full day of negotiations that concerns surrounding rare earth minerals and magnets “will be resolved” eventually, as the deal is implemented.But this framework will first need to be approved by leaders in Washington and Beijing, officials said, at the end of meetings at the British capital’s historic Lancaster House.All eyes were on the outcomes of negotiations as both sides tried to overcome an impasse over export restrictions. US officials earlier accused Beijing of slow-walking approvals for shipments of rare earths.The world’s two biggest economies were also seeking a longer-lasting truce in their escalating tariffs war, with levies currently only temporarily on hold.”We’re moving as quickly as we can,” US Trade Representative Jamieson Greer told reporters Tuesday.”We would very much like to find an agreement that makes sense for both countries,” he added, noting that the relationship was complex.”We feel positive about engaging with the Chinese,” he maintained.Speaking separately to reporters, China International Trade Representative Li Chenggang said: “Our communication has been very professional, rational, in-depth and candid.”Li expressed hope that progress made in London would help to boost trust on both sides.And in a state media readout of the talks released Wednesday, Chinese Vice Premier He Lifeng, who headed Beijing’s team in London, stressed the need for the two sides to strengthen cooperation in future dialogue.”As a next step, the two sides should… continuously enhance consensus, reduce misunderstandings and strengthen cooperation,” He Lifeng said, according to state broadcaster CCTV.- Productive talks -US Treasury Secretary Scott Bessent earlier described the closely-watched trade talks as productive, although scheduling conflicts prompted his departure from London with negotiations still ongoing.Bessent, who led the US delegation with Lutnick and Greer, left early to return to Washington for testimony before Congress, a US official told AFP.Both sides do not yet have another gathering scheduled.But Lutnick said Tuesday that US measures imposed when rare earths “were not coming” would likely be relaxed once Beijing moved forward with more licence approvals.Stocks rose Wednesday as investors welcomed the China-US agreement to lower trade tensions, stoking hopes the economic superpowers will eventually reach a broader tariff deal.Hong Kong was among the best performers in Asia while European markets were also up.The London negotiations follow talks in Geneva last month, which saw a temporary agreement to lower tariffs.This time, China’s exports of rare earth minerals — used in a range of things including smartphones, electric vehicle batteries and green technology — were a key issue on the agenda.”In Geneva, we had agreed to lower tariffs on them, and they had agreed to release the magnets and rare earths that we need throughout the economy,” US President Donald Trump’s top economic adviser, Kevin Hassett, told CNBC on Monday.Even though Beijing was releasing some supplies, “it was going a lot slower than some companies believed was optimal”, he added.- ‘Mirror arsenal’ -Both countries “have developed almost a mirror arsenal of trade and investment weapons that they can aim at each other,” said Emily Benson, head of strategy at Minerva Technology Futures.As they tap economic tools to try to shift global power structures, she told AFP, it may not be reasonable to expect a typical trade and investment deal.But both sides could find ways to level off a downward spiral.A dialling-down of temperatures could involve Chinese efforts to shore up the process for granting export control licences, Benson said. She noted Beijing appeared understaffed given the volume of requests.On the US side, this could look like a relaxation of certain export curbs in the high-tech domain, she added.But observers remained cautious, with Thomas Mathews of Capital Economics warning that Washington was unlikely to “back off completely.” This could weigh on markets.Since returning to office, Trump has slapped a 10 percent levy on friend and foe, threatening steeper rates on dozens of economies.His tariffs have dented trade, with Beijing data showing Chinese exports to the United States plunged in May.The World Bank on Tuesday joined other international organisations to slash its 2025 global growth forecast amid trade uncertainty.China is also in talks with partners including Japan and South Korea to try to build a united front countering Trump’s tariffs.burs-oho/mtp

Stocks rose Wednesday as investors welcomed a China-US agreement to lower trade tensions that stoked hopes the economic superpowers will eventually reach a broader tariff deal.After two days of high-profile, closely watched talks in London, the two sides said they had set up a framework to move towards a pact, following negotiations in Geneva last month that saw them slash tit-for-tat levies.The news provided some much-needed relief to markets after US President Donald Trump accused Beijing of violating that deal. The latest round of talks followed a phone call between Trump and his Chinese counterpart Xi Jinping on Thursday.As well as tariffs, a key issue in the discussions was China’s export of earth minerals and magnets used in a range of things including smartphones and electric vehicle batteries, while Beijing was keen to see an easing of restrictions on its access to tech goods.US Commerce Secretary Howard Lutnick said he was upbeat that concerns over rare earths “will be resolved” eventually, as the agreement is implemented.Xi and Trump must approve the framework first.”We’re moving as quickly as we can,” US Trade Representative Jamieson Greer told reporters. “We would very much like to find an agreement that makes sense for both countries,” he added.”We feel positive about engaging with the Chinese.”Speaking separately to reporters, China International Trade Representative Li Chenggang expressed hope that progress made in London would help to boost trust on both sides.The deal, which was reached late Tuesday, boosted Asian markets with Hong Kong among the best performers, while Shanghai, Tokyo, Sydney, Seoul, Mumbai, Bangkok, Wellington, Taipei and Manila were also up.London, Paris and Frankfurt enjoyed healthy gains in the morning.However, analysts said investors would be keen to get a closer look at the details of the agreement.”The US-China trade circus wrapped with what can only be described as a diplomatic tautology,” said Stephen Innes at SPI Asset Management.He called it “a late-night announcement that both sides have ‘agreed in principle on a framework to implement the Geneva consensus’ — a consensus that was… already agreed upon weeks ago”.And he warned that markets could run out of steam if nothing concrete came through.”If the next headline doesn’t come with something tangible, such as cargo ships loaded with rare earths or an actual rollback of tariffs, expect risk assets to start demanding more photo opportunities,” he wrote.”Until then, this rally relies on faith.”And Saxo chief investment strategist Charu Chanana said before the deal was announced that while there was some hope for the talks “the era of easy wins — tariff pauses and minor concessions — is over”.”What’s left are deeper, more entrenched challenges: tech restrictions, rare earth supply chains, student visas, and national security-linked concerns. These are strategic disputes, unlikely to be resolved in a few rounds of meetings.”Still, she did say that “trade uncertainty has clearly faded since the peak chaos of early April”, when Trump unleashed a tariff blitz that hammered worldwide stock and bond markets.Tuesday’s news also overshadowed the World Bank’s slashing of 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.- Key figures at around 0810 GMT -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)London – FTSE 100: UP 0.2 percent at 8,868.90 Euro/dollar: DOWN at $1.1423 from $1.1426 on TuesdayPound/dollar: DOWN at $1.3486 from $1.3501Dollar/yen: UP at 145.12 yen from 144.88 yenEuro/pound: UP 84.70 pence from 84.61 penceWest Texas Intermediate: UP 0.2 percent at $65.12 per barrelBrent North Sea Crude: UP 0.1 percent at $66.94 per barrelNew York – Dow: UP 0.3 percent at 42,866.87 (close)

The Switch 2 has smashed records to become the fastest-selling console ever after gamers snapped up 3.5 million units in its first four days, Nintendo said Wednesday.Featuring a bigger screen and more processing power, the console is an upgrade to the original Switch — the third best-selling console of all time.It was released last Thursday to a global swell of fan excitement that included sold-out pre-orders and midnight store openings.The Japanese game giant said the Switch 2 had reached “the highest global sales level for any Nintendo hardware within the first four days”.It also broke industry records, analysts said, beating the first Switch and Sony’s PlayStation 5, which respectively sold 2.7 million and 3.4 million units in their first month.Now the key question is whether Nintendo can extend early excitement to match the overall success of the original.The first Switch, which enjoyed a popularity boost during the pandemic with hit games such as “Animal Crossing”, has sold 152 million units since its launch in 2017.”Sales momentum will be difficult to sustain in the long run,” cautioned Darang Candra of games market research firm Niko Partners.”It could be that consumers want to buy before potential price increases due to potential tariffs by the United States,” he told AFP.”Its long-term success will depend on Nintendo’s ability to sustain engagement with new titles” and attract casual gamers in emerging markets such as the Middle East and Asian countries outside Japan, Candra said.- High price -Nintendo forecasts it will sell 15 million Switch 2 consoles in the current financial year, roughly equal to the original in the same period after its release.But it will also need to convince enough people to pay the high price for its new device.The Switch 2 costs $449.99 in the United States, compared to a launch price of $299.99 for the original Switch.Both are hybrid consoles which can connect to a TV or be played on the go.New games such as “Donkey Kong Bananza” and “Mario Kart World” — which allow players to go exploring off-grid — are also more expensive than existing Switch titles.The cost of the Switch 2 for American consumers is “a calculated move on Nintendo’s part to avoid potential impacts from US tariffs”, Candra said.A Japan-only version is cheaper, at 49,980 yen ($350).Nintendo says that hardware for North America is mainly produced in Vietnam, which US President Donald Trump has threatened with hefty extra tariffs of 46 percent.The Switch 2 has eight times the memory of the first Switch, and its controllers, which attach with magnets, can also be used like a desktop computer mouse.New functions allowing users to chat as they play online and temporarily share games with friends could also be a big draw for young audiences used to watching game streamers.And success is crucial: while the “Super Mario” maker is diversifying into theme parks and hit movies, around 90 percent of its revenue comes from the Switch business.

European Central Bank chief Christine Lagarde warned Wednesday that “coercive trade policies” risked harming supply chains and the global economy, and called for a de-escalation of a tariff standoff that has wiped billions off markets.Lagarde, one of the world’s most influential central bankers, is visiting Beijing this week for talks with local counterparts on the Chinese economy and expanding cooperation.Her visit came as high-level China-US talks in London ended with an agreement to lower tensions after US President Donald Trump launched his tariff blitz in April.In a speech at the People’s Bank of China — the country’s central bank — she urged all parties to find solutions “even in the face of geopolitical differences”.Lagarde urged countries to protect the “multilateral framework” of international trade, which she said “so greatly benefited our economies”.”Coercive trade policies are far more likely to provoke retaliation and lead to outcomes that are mutually damaging,” she added.”All countries should examine how their structural and fiscal policies can be adjusted to reduce their own role in fuelling trade tensions,” she said, calling for an end to “mutually damaging escalation of tensions”.She warned that protectionism risked “eroding the foundations of global prosperity”.Beijing and Brussels’ trade policies have been slammed by Trump, who last month threatened to escalate tariffs on the European Union if it did not negotiate a swift deal.China, meanwhile, has sought to improve shaky relations with the bloc as a counterpoint to Trump.China and the European Union will host a summit next month marking 50 years since they established diplomatic ties.The two sides will discuss setting minimum prices for Chinese electric vehicles in Europe and opening a “green channel” for rare earth exports to the 27-nation bloc, according to official statements.

A sprawling new mine is gouged into the lush rolling hills of northeast Myanmar, where civil war has weakened the government’s already feeble writ, and pollution levels are rising downstream in Thailand.The complex is one of around a dozen extraction operations that have sprung up in Shan state since around 2022, in territory controlled by the United Wa State Army (UWSA), one of conflict-wracked Myanmar’s largest and best-equipped ethnic armed groups.A few kilometres away across the border, locals and officials in Thailand believe toxic waste is washing downstream from the mines into the Kok River, which flows through the kingdom’s far north on its way to join the mighty Mekong.Thai authorities say they have detected abnormally high arsenic levels in their waterways, which could pose a risk to aquatic life and the people further up the food chain.The price fisherman Sawat Kaewdam gets for his catch has fallen by almost half, he says, because locals fear contamination.”They say, ‘There’s arsenic. I don’t want to eat that fish’,” he told AFP.Tests in Chiang Mai and Chiang Rai by a government pollution agency found levels of the toxic element as high as 49 microgrammes per litre (mcg/l) of river water — nearly five times international drinking water standards.Experts say that while the effects on human health would not be visible immediately, the fish-heavy local diet risks a cumulative impact over several years.”We already know where the contamination is coming from,” says fisherman Sawat.”They should go fix it at the source.”- Fivefold rise -Pianporn Deetes, campaign director of the International Rivers NGO, blames the arsenic levels on Shan state’s unlicensed mines, which operate outside any regulation or control by the central government.It was Thailand’s “largest-ever case of transboundary pollution”, she added. The mines are believed to be run by Chinese companies with close links to the UWSA, whose members themselves have longstanding ties to China, speak Mandarin and use China’s yuan currency.It is unclear whether the mines are digging for gold, rare earths or a variety of minerals, and it is also difficult to gauge the size of an industry operating in a secretive grey zone.But videos on Chinese social media suggest much of what is produced in Myanmar ends up being sold to Chinese buyers.In a report Tuesday citing Chinese customs data, think tank ISP-Myanmar said the country was the source of around two-thirds of China’s rare earth imports by value.The Asian giant had imported five times as much rare earths from Myanmar in the four years since the 2021 military coup than in the equivalent preceding period, it added. Many modern mines use a system of tailing ponds to reuse leftover waste and water and stop it being released into rivers, said Tanapon Phenrat of Naresuan University’s civil engineering department.But “in Myanmar, they reportedly discharge it directly into natural waterways”, he added, increasing the risk of contamination spreading into the food chain.”What we need is for mines to treat their waste properly and stop discharging toxic substances into shared waterways.”AFP was unable to reach UWSA officials for comment.- ‘Legal and orderly’ -From its Myanmar headwaters, the 285-kilometre (177-mile) Kok River is a vital resource for thousands of people as it wends through Chiang Rai province on its way to feed the Mekong.In Chiang Rai City, a tranquil place popular with tourists, environmentalists dressed as wart-afflicted fish dance in protest.The Thai government has proposed building a dam to prevent contaminated water from entering the country, but campaigners say physical barriers alone cannot stop pollution.Bangkok acknowledges that Myanmar’s junta may be unable to stop Chinese companies operating mines in militia-controlled areas.And Chonthicha Jangrew of Thailand’s parliamentary foreign affairs committee met senior Beijing officials last month, urging them to supervise Chinese mining firms “in order to stop the impact on people downstream”, she said.The Chinese embassy in Bangkok posted on Facebook Sunday that it had instructed Chinese companies “to comply with the laws of the host country and to conduct their business in a legal and orderly fashion at all times”.The Myanmar junta did not respond to questions from AFP.”The water isn’t beyond saving yet,” said Tanapon of Naresuan University. “But this is a clear signal,” he added. “We need to act now.”

Asian stocks rose Wednesday as investors welcomed a China-US agreement to lower trade tensions that stoked hopes the economic superpowers will eventually reach a broader tariff deal.After two days of high-profile, closely watched talks in London, the two sides said they had set up a framework to move towards a pact, following negotiations in Geneva last month that saw them slash tit-for-tat levies.The news provided some much-needed relief to markets after US President Donald Trump accused Beijing of violating that deal. The latest round of talks followed a phone call between Trump and his Chinese counterpart Xi Jinping on Thursday.As well as tariffs, a key issue in the discussions was China’s export of earth minerals and magnets used in a range of things including smartphones and electric vehicle batteries, while Beijing was keen to see an easing of restrictions on its access to tech goods.US Commerce Secretary Howard Lutnick said he was upbeat that concerns over rare earths “will be resolved” eventually, as the agreement is implemented.Xi and Trump must approve the framework first.”We’re moving as quickly as we can,” US Trade Representative Jamieson Greer told reporters. “We would very much like to find an agreement that makes sense for both countries,” he added.”We feel positive about engaging with the Chinese.”Speaking separately to reporters, China International Trade Representative Li Chenggang expressed hope that progress made in London would help to boost trust on both sides.The deal, which was reached late Tuesday, boosted Asian markets with Hong Kong and Shanghai among the best performers, while Tokyo, Sydney, Seoul, Wellington, Taipei and Manila were also up.However, analysts said investors would be keen to get a closer look at the details of the agreement.”The US-China trade circus wrapped with what can only be described as a diplomatic tautology,” said Stephen Innes at SPI Asset Management.He called it “a late-night announcement that both sides have ‘agreed in principle on a framework to implement the Geneva consensus’ — a consensus that was… already agreed upon weeks ago”.And he warned that markets could run out of steam if nothing concrete came through.”If the next headline doesn’t come with something tangible, such as cargo ships loaded with rare earths or an actual rollback of tariffs, expect risk assets to start demanding more photo opportunities,” he wrote.”Until then, this rally relies on faith.”And Saxo chief investment strategist Charu Chanana said before the deal was announced that while there was some hope for the talks “the era of easy wins — tariff pauses and minor concessions — is over”.”What’s left are deeper, more entrenched challenges: tech restrictions, rare earth supply chains, student visas, and national security-linked concerns. These are strategic disputes, unlikely to be resolved in a few rounds of meetings.”Still, she did say that “trade uncertainty has clearly faded since the peak chaos of early April”, when Trump unleashed a tariff blitz that hammered worldwide stock and bond markets.Tuesday’s news also overshadowed the World Bank’s slashing of 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 expansion.- Key figures at around 0230 GMT -Tokyo – Nikkei 225: UP 0.5 percent at 38,385.37 (break)Hong Kong – Hang Seng Index: UP 0.7 percent at 24,327.51Shanghai – Composite: UP 0.6 percent at 3,403.56Euro/dollar: DOWN at $1.1413 from $1.1426 on TuesdayPound/dollar: DOWN at $1.3481 from $1.3501Dollar/yen: UP at 145.03 yen 144.88  yenEuro/pound: UP 84.66 pence from 84.61 penceWest Texas Intermediate: DOWN 0.2 percent at $64.86 per barrelBrent North Sea Crude: DOWN 0.2 percent at $66.72 per barrelNew York – Dow: UP 0.3 percent at 42,866.87 (close)London – FTSE 100: UP 0.2 percent at 8,853.08 (close)

Nintendo said Wednesday it had sold a record 3.5 million Switch 2 units worldwide in the first four days after the console was launched.”This is the highest global sales level for any Nintendo hardware within the first four days,” the Japanese video game giant said in a statement.Featuring a bigger screen and more processing power, the Switch 2 is an upgrade to Nintendo’s blockbuster Switch console.It was released last Thursday to a global swell of fan excitement that included sold-out pre-orders and midnight store openings.Since its 2017 launch, the original Switch — which enjoyed a popularity boost during the pandemic with hit games such as “Animal Crossing” — has sold 152 million units.That makes it the third best-selling console of all time.Analysts predicted last week that Nintendo could score record early sales with the Switch 2 — but it remains to be seen if it can match the performance of its predecessor.Challenges for Nintendo include uncertainty over US trade tariffs and whether it can convince enough people to pay the high price for its new device.The Switch 2 costs $449.99 in the United States, compared to a launch price of $299.99 for the original Switch.Both are hybrid consoles which can connect to a TV or be played on the go.New games such as “Donkey Kong Bananza” and “Mario Kart World” — which allow players to go exploring off-grid — are also more expensive than existing Switch titles.Nintendo forecasts it will sell 15 million Switch 2 consoles in the current financial year, roughly equal to the original in the same period after its release.The Switch 2 “is priced relatively high” compared to its predecessor, so it “will not be easy” to keep initial momentum going, the company’s president Shuntaro Furukawa said at a financial results briefing in May.The Switch 2 has eight times the memory of the first Switch, and its controllers, which attach with magnets, can also be used like a desktop computer mouse.New functions allowing users to chat as they play online and temporarily share games with friends could also be a big draw for young audiences used to watching game streamers.Success is crucial for Nintendo: while the “Super Mario” maker is diversifying into theme parks and hit movies, around 90 percent of its revenue still comes from the Switch business, analysts say.