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European and Asian stock markets diverged Tuesday and the dollar rallied as Donald Trump wasted no time in starting his second term as US president with a raft of announcements affecting the global economy.Wall Street reopens later after being shut Monday for the Martin Luther King holiday, which coincided with Trump’s inauguration.Trading was mixed “as we enter a new four-year period of Trumpenomics”, said Scope Markets analyst Joshua Mahony. “Once again, Trump appears to care little for who are perceived to be allies or foes, with Canadian and Mexican currencies hit hard off the back of his claim that the US may impose a 25 percent tariff of their exports.”However, the Chinese markets clearly felt more optimistic, with Trump’s decision to reinstate TikTok followed up by a lack of any mention around tariffs on Chinese imports.”Trump gave social media app TikTok 75 days to find a buyer for its US business, after it missed a deadline Saturday ordering its Chinese owners ByteDance to sell its US subsidiary to non-Chinese buyers or be banned.A top Chinese official warned Tuesday that no country would emerge victorious from a trade war.”Protectionism leads nowhere, and there are no winners in a trade war,” Vice Premier Ding Xuexiang said in a speech at the World Economic Forum in Davos, Switzerland.On becoming president, Trump signed a slew of executive orders that indicated he could resume his hardball approach to global diplomacy and trade, including pulling out of the Paris climate accord and the World Health Organization.Tech billionaires including Elon Musk, Mark Zuckerberg and Jeff Bezos were given prime positions at the inauguration, an unprecedented demonstration of their power and influence on US politics.Oil prices slid Tuesday after Trump said the United States would significantly expand drilling in the world’s top oil and gas producer.We will ‘drill, baby, drill!'” the president said during his inauguration speech.Hong Kong’s stock market closed up nearly one percent, with embattled Chinese developer Country Garden surging 17.5 percent as trading of the stock resumed after a nine-month suspension.- Key figures around 1045 GMT -London – FTSE 100: UP 0.1 percent at 8,526.64 pointsParis – CAC 40: UP 0.1 percent at 7,744.32Frankfurt – DAX: DOWN 0.1 percent at 20,975.30Tokyo – Nikkei 225: UP 0.3 percent at 39,027.98 (close)Hong Kong – Hang Seng Index: UP 0.9 percent at 20,106.55 (close)Shanghai – Composite: DOWN 0.1 percent at 3,242.62 (close)New York – Dow: Closed for public holidayEuro/dollar: DOWN at $1.0351 from $1.0404 on MondayPound/dollar: DOWN at $1.2248 from $1.2302Dollar/yen: UP at 155.97 yen from 155.67 yenEuro/pound: DOWN at 84.51 pence from 84.56 penceWest Texas Intermediate: DOWN 2.2 percent at $75.69 per barrelBrent North Sea Crude: DOWN 1.3 percent at $79.09 per barrelburs-bcp/js

Asian markets saw big fluctuations Tuesday as Donald Trump took office warning he could impose stiff tariffs on Canada and Mexico next month but appeared to delay any action against China for now.The new US president’s announcement that the country’s closest neighbours could be hit with 25 percent levies as soon as February 1 also jolted currency markets, with the Mexican peso and Canadian dollar tumbling.His comments came as he signed a slew of executive orders that indicated he could resume his hardball approach to global diplomacy and trade, including pulling out of the Paris climate accord and the World Health Organization.He also gave social media app TikTok 75 days to find a buyer for its US business, after it missed a deadline Saturday ordering its Chinese owners ByteDance to sell its US subsidiary to non-Chinese buyers or be banned.”We’re thinking in terms of 25 percent on Mexico and Canada, because they’re allowing vast numbers of people — Canada’s a very bad abuser also — vast numbers of people to come in, and fentanyl to come in,” he said in the Oval Office.He had earlier said he would “immediately begin the overhaul of our trade system to protect American workers and families”.”Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens,” he announced in his inaugural address.Markets in Asia and Europe had enjoyed a healthy run-up Monday — with Frankfurt hitting another record — on hopes Trump would take a more gradual approach to trade policy, after news of positive talks with Chinese President Xi Jinping added to the optimism.That lack of mention of China fanned hopes the economic superpowers will not embark on another trade war.And Beijing said Tuesday it hoped the two sides could cooperate on the issue, with foreign ministry spokesman Guo Jiakun saying it is “willing to strengthen dialogue and communication with the United States (and) properly manage differences”.However, Trump’s warning to Ottawa and Mexico City caused some nervousness on trading floors.Shanghai, Singapore, Seoul, Wellington, Manila and Mumbai fell while Tokyo, Sydney, Taipei, Bangkok and Jakarta rose. Hong Kong advanced, with embattled Chinese developer Country Garden soaring as much as 30 percent at one point as trading in the firm resumed after a nine-month suspension. It ended 17.5 percent higher.London edged up at the open but Frankfurt and Paris slipped.Dealing in the firm was paused in April 2024 after it postponed the release of its 2023 results. It published them last week, revealing that it made a loss of US$24.3 billion — after a US$825 million loss the year before.The dollar, which had weakened across the board Monday, bounced against its major peers, but its biggest gains were against the Mexican peso and Canadian dollar, with the latter at its weakest since the start of 2020 during the pandemic.”The new administration seems aware of the potential downsides of tariffs,” said Tai Hui, Asia Pacific chief market strategist at JP Morgan Asset Management.”China, Mexico, and Canada remain in the spotlight for possible tariff increases. Investors may need to prepare for some whipsawing of policy announcements in the weeks ahead as the new administration settles on precise policy direction.”Wall Street was shut Monday for the Martin Luther King holiday, but US stock futures were solidly higher.- Key figures around 0815 GMT -Tokyo – Nikkei 225: UP 0.3 percent at 39,027.98 (close)Hong Kong – Hang Seng Index: UP 0.9 percent at 20,106.55 (close)Shanghai – Composite: DOWN 0.1 percent at 3,242.62 (close)London – FTSE 100: UP 0.1 percent at 8,525.85Euro/dollar: DOWN at $1.0367 from $1.0404 on MondayPound/dollar: DOWN at $1.2256 from $1.2302Dollar/yen: UP at 155.74 yen from 155.67 yenEuro/pound: UP at 84.59 pence from 84.56 penceWest Texas Intermediate: DOWN 1.2 percent at $76.98 per barrelBrent North Sea Crude: DOWN 0.3 percent at $79.91 per barrelNew York – Dow: Closed for public holiday

Treading a familiar path for women in rural Vietnam, Nguyen Thi Hiep found a factory job in dynamic Ho Chi Minh City and spent 16 years helping make shoes for Western brands such as Adidas and Nike.Vietnam is among the world’s largest exporters of clothing, footwear and furniture and Ho Chi Minh City and its hundreds of thousands of migrant workers have for decades helped power its manufacturing boom. The southern metropolis offered stable jobs with decent pay, and young women in particular flocked to garment and shoe factories, where the workforce is three-quarters female.But as living costs surge, Hiep is joining a wave of workers rejecting the commercial hub for a quieter life back home — leaving city businesses struggling to fill their ranks.”I have stayed in this city long enough,” Hiep, 42, told AFP after her shift at a factory owned by Taiwan’s Pou Chen, one of the biggest and best-paying shoe manufacturers in the country.”I work all day long, starting at sunrise and ending when it’s dark,” she said. “But I still struggle to pay my rent.”Despite earning 10 million dong ($400) a month, a third more than the national average, Hiep lives in a 10-square-metre, one-room apartment with her husband and eight-year-old daughter, buying the cheapest food she can find and saving nothing.Housing, utility, healthcare and education costs are rising across the country, and workers in Ho Chi Minh City say their salaries can no longer meet their needs.So Hiep and her husband, a motorbike taxi driver, have decided to leave.This week, ahead of the Tet festival when Vietnam celebrates the lunar new year, the family will make the 1,000-kilometre (621-mile) journey home to a remote corner of mountainous Quang Binh province, 24 hours and a world away from the traffic and pollution of Ho Chi Minh City and its 10 million people.They have no plans to return.- Rapid departure -In the decades since Vietnam’s post-war “doi moi” economic transformation, Ho Chi Minh City and the capital Hanoi have been at the heart of the “from farm to factory” trend, said professor Pham Van Dai of the country’s Fulbright University.It is a pattern that has played out in many developing countries across the world.But when the Covid-19 pandemic forced people out of factories and back to their homes, many found rural areas had developed, offering more opportunities than a decade earlier and a higher quality of life.”The number of migrant workers (moving out) rose rapidly,” Dai told AFP.In Binh Tan, a popular migrant district where Hiep lives, the number of temporary residents dropped by almost a quarter — more than 100,000 people — between 2020 and 2023, Le Thi Ngoc Dung, vice chairwoman of the local people’s committee, told state media. And although new migrants are still arriving across the city, the number has fallen drastically — from 180,000 in 2020 to 65,000 people in 2023, according to the city’s population and planning department. “When their income can no longer cover living costs” migrants will leave, Dai said. “The city has not shifted quick enough to create better jobs.”In 2022, more than 60 percent of Ho Chi Minh City’s migrant population had decided to leave or were mulling it over, a survey by the Vietnam Chamber of Commerce and Industry and the UN’s International Organization for Migration showed. More than half blamed high living costs.- Labour shortage -Struggling to afford food and schooling, Truong Thi Le, also a Pou Chen worker, made the heartbreaking decision to send her six-year-old daughter to live with her uncle in Quang Binh.After eight years in the city, she and her younger daughter will soon follow, leaving behind the poor air quality — which regularly exceeds World Health Organization’s guidelines by three to five times — that she says is making her children ill.”We can’t make it work,” said Le, who together with her husband earns roughly 16 million dong a month.”And the environment in the countryside will be better for my kids.”Low income, small and dilapidated houses, separation from their children, overtime and night shifts: each contributes to migrant workers’ “increasing feeling of insecurity and lack of stability”, said Nguyen Thi Minh Ngoc, a manager at recruitment company ViecLamTot.As stress levels rise and their health deteriorates, they leave despite knowing their income will drop, Ngoc told AFP.Business is beginning to feel the effects.An August survey by ViecLamTot showed around 30 percent of manufacturers in the city faced a labour shortage, while 85 percent said they were having trouble recruiting.For the workers themselves, the future remains uncertain.Le said she might return to farming, while Hiep has thought of finding a factory closer to home.In any event, she envies the simple life of her neighbours back home, “playing volleyball, getting together to sing and dance”.In Ho Chi Minh City, she says, “life is too hard”.

President Donald Trump said Monday he may impose 25 percent tariffs on Canada and Mexico as early as February 1, while promising punitive measures on other countries as part of new US trade policy.Trump rekindled his threat against the two major US trading partners hours after taking the oath of office — accusing them of failing to stop illegal immigration and drug trafficking into the United States.”We’re thinking in terms of 25 percent on Mexico and Canada, because they’re allowing vast numbers of people — Canada’s a very bad abuser also — vast numbers of people to come in, and fentanyl to come in,” he said in the Oval Office as he signed an array of executive orders.He added that he was thinking of enacting the tariffs on February 1.Trump also signed an order Monday directing agencies to study a host of trade issues including deficits, unfair practices and currency manipulation.These could pave the way for further duties.In ordering the probe on large US deficits, Trump asked agencies to “recommend appropriate measures, such as a global supplemental tariff or other policies” as remedies.He also called for a review of Washington’s trade deal with Mexico and Canada, alongside its pact with China that marked a truce in their earlier tariff war.- Trade overhaul -Earlier Monday, Trump vowed to “immediately begin the overhaul” of the US trade system “to protect American workers and families.””Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens,” Trump said in his inaugural address.Trump had threatened the tariff hikes on Canadian and Mexican imports as president-elect, as well as an additional 10 percent on Chinese goods, if they did not do more about illegal immigration and the flow of fentanyl into the country.On the campaign trail, Trump also floated the idea of added duties on all imports and even steeper rates on Chinese goods.Mexico, Canada and China are leading sources for goods imported by the United States, according to official trade data.Asked about across-the-board tariffs, Trump on Monday night told reporters in the Oval Office he might enact them, but added: “We’re not ready for that yet.”Tariffs are paid by US importers to the government on purchases from abroad, and the economic weight falls on importers, foreign suppliers or consumers.- EU in cross-hairs -Speaking in the Oval Office, Trump took aim at trade imbalances with the European Union too, saying it did not import enough American products.He added he would “straighten that out” by using tariffs or by urging more oil and gas purchases from the bloc.The EU’s economy commissioner said earlier Monday that it stood ready to defend its interests, while Canadian Foreign Minister Melanie Joly said Ottawa would work to ensure it is ready to respond to any US actions.Canada’s finance minister Dominic Leblanc added that it would be a mistake for Washington to proceed with tariffs.In his inaugural address, Trump reiterated his plan also to set up an “External Revenue Service” to collect tariffs, duties and revenues.Some analysts have warned that tariff hikes would bring higher consumer prices and weigh on GDP.But Trump’s supporters have pointed to other proposals like tax cuts and deregulation as ways to offset any potential negative impacts.Trump also signed a directive to establish a new “Department of Government Efficiency,” after naming billionaire ally Elon Musk to lead such an initiative.The office dubbed DOGE is expected to propose major cuts to federal spending and regulations.

US President Donald Trump promised tariffs and taxes on other countries Monday after being sworn in, although he held off announcing any immediate measures.Since his election victory, Trump has taken aim at foreign allies and adversaries alike, raising the prospect of fresh levies to push other countries towards tougher action on US priorities.Early Monday, Trump vowed: “I will immediately begin the overhaul of our trade system to protect American workers and families.””Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens,” Trump added in an inaugural address as president.Before his White House return, Trump vowed to impose 25 percent tariffs on Canadian and Mexican imports, and an additional 10 percent on Chinese goods, if they did not do more about illegal immigration and the flow of fentanyl into the United States.On the campaign trail, Trump also floated the idea of added duties on all imports and steeper rates — 60 percent or more — on Chinese goods.But he stopped short Monday of unveiling new tariffs.These are paid by US importers to the government on purchases from abroad, with the economic weight of levies falling on importers, foreign suppliers or consumers.- ‘America First Trade Policy’ -Trump also on Monday signed a directive for all federal agencies “to address the cost-of-living crisis that has cost Americans so dearly,” calling for action to lower housing costs and others.The White House added in a notice that Trump would unveil his “America First Trade Policy.”The European Union’s economy commissioner said the bloc stood ready to defend its interests, while Canada’s Foreign Minister Melanie Joly said Ottawa would work to ensure it is ready to respond to US trade policies.Trump also reiterated his plan to set up an “External Revenue Service” to collect tariffs, duties and revenues, promising “massive amounts of money” pouring in.The name is a play on the Internal Revenue Service, which administers and enforces US tax laws.Some analysts have warned that tariff hikes would bring higher consumer prices and weigh on GDP.A 2021 literature review by the Tax Foundation found that consumers and businesses tended to bear the burden of recent tariffs, although these did not appear to drive economy-wide inflation.But Trump’s supporters have pointed to other proposals like tax cuts and deregulation as ways to spur growth.Trump’s Treasury secretary nominee Scott Bessent told lawmakers last Thursday that he disagreed the cost of tariffs would be borne domestically.And Commerce secretary nominee Howard Lutnick told Trump’s supporters in Washington that if firms wanted to avoid duties, they should build factories in America.Trump also said he would establish a new “Department of Government Efficiency.”The office dubbed DOGE, to be led by Elon Musk and businessman Vivek Ramaswamy, has an advisory role but is eyeing some $1 trillion in federal spending cuts.But Ramaswamy has reportedly decided to step aside and run for governor of midwestern state Ohio.

US President Donald Trump promised tariffs and taxes on other countries Monday, in a nationalistic inaugural address after being sworn in as the 47th president.”I will immediately begin the overhaul of our trade system to protect American workers and families,” he said at the US Capitol.”Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens,” Trump added.Since his election victory in November, Trump has taken aim at allies and adversaries alike, raising the prospect of fresh levies to push other countries towards tougher action on US concerns.Before his White House return, Trump vowed to impose 25 percent tariffs on Canadian and Mexican imports, and an additional 10 percent on Chinese goods, if they did not do more about illegal immigration and the flow of fentanyl into the United States.On the campaign trail, Trump also floated the idea of much steeper tariff rates — 60 percent or more — on Chinese imports.But he stopped short Monday of unveiling new tariffs, which are applied on imported goods when a US buyer purchases them from abroad.- ‘America First Trade Policy’ -The White House said Monday that under the Trump administration, all agencies would adopt “emergency measures to reduce the cost of living.”It added that Trump would unveil his “America First Trade Policy,” stressing also that Washington would not be beholden to foreign organizations for its tax policy.In his speech Monday, Trump reiterated his plan to set up an “External Revenue Service” to collect tariffs, duties and revenues, promising “massive amounts of money” pouring in from foreign sources.The name is a play on the Internal Revenue Service, a bureau under the Treasury Department that administers and enforces US tax laws.”The American dream will soon be back and thriving like never before,” he said.Some analysts have warned that tariff hikes would bring higher consumer prices and weigh on GDP growth over time.But Trump’s supporters have pointed to his other policy proposals like tax cuts and deregulation as a means to spur growth.Trump’s Treasury secretary nominee Scott Bessent told lawmakers last Thursday that he disagreed the cost of tariffs would be borne domestically.On Monday, Trump also said his government would establish a new “Department of Government Efficiency.”The office dubbed DOGE, to be led by Elon Musk and businessman Vivek Ramaswamy, is eyeing some $1 trillion in cuts to federal spending.While DOGE has an advisory role, Musk’s star power and strong influence in Trump’s inner circle bring political clout.

European and Asian stock markets rose on Monday and bitcoin hit a fresh high as Donald Trump prepared to re-enter office as president of the world’s biggest economy.The dollar slid more than one percent versus the euro and lost similar ground against the pound after The Wall Street Journal reported that Trump would not immediately impose tariffs upon his inauguration.“The dollar is incredibly sensitive to the tariff outlook right now, and the new administration is already setting a tone suggesting that the fast-moving, shock-and-awe trade policy that Trump had promised is likely to be more measured than the market had expected,” commented Kyle Chapman, FX Markets Analyst at Ballinger Group.Oil prices also fell more than 1 percent.Kathleen Brooks, research director at XTB, suggested a second Trump term could prove to be less volatile than his first, noting that “Treasury Secretary Scott Bessant has spoken out against tariffs and is said to be a moderating influence on the President.”Noting forecasts of a flood of executive orders, Brooks said that there were signs that “a programme of tariffs is still under debate by Trump and his team.” Trump’s declarations during his re-election campaign and during the transition that he will impose hefty tariffs on imports had fanned fears of another debilitating trade war between the US and China, the world’s second-largest economy.Pledges to slash taxes, regulations and immigration have also led to concerns that inflation could be reignited and force the Federal Reserve to hold off cutting interest rates further, with some observers even flagging possible hikes.But sentiment was boosted by positive talks between Trump and Chinese President Xi Jinping last week that soothed worries about the incoming US leader’s second term.Bitcoin hit a record above $109,000 before easing as Trump, who has signalled plans to deregulate the cryptocurrency sector, prepares to be sworn in as US president.Over the weekend, Trump launched his own cryptocurrency, a so-called meme coin appropriately called $TRUMP, sparking feverish buying that sent its market capitalisation soaring to several billion dollars.”Markets are beating to the drum of Donald Trump on the day of his return to the White House,” noted Russ Mould, investment director at AJ Bell.Frankfurt’s blue-chip DAX soared past 21,000 points for the first time, closing just north of the figure for a 0.4 percent session gain.”In the new year, the German leading index has been the secret star among global stock indices,” despite a gloomy German economic outlook, said Jochen Stanzl, Chief Market Analyst at CMC Markets.London’s benchmark FTSE 100 index also traded close to record highs, finishing 0.2 percent higher.Wall Street was shut Monday for the Martin Luther King holiday, but US stock futures were solidly higher.”The start of a new presidency often brings fresh energy — and uncertainty — to the financial markets,” said Saxo Markets chief investment strategist Charu Chanana.”With Donald Trump’s inauguration, investors are bracing for significant policy shifts. This could mean changes in taxes, spending, and trade agreements.”Hong Kong’s stock market led gains in Asia amid hopes that the feared trade war can be averted.- Key figures around 1645 GMT -London – FTSE 100: UP 0.2 percent at 8,522.41 points (close)Paris – CAC 40: UP 0.3 percent at 7,731.94 (close)Frankfurt – DAX: UP 0.4 percent at 21,004.92 (close)Tokyo – Nikkei 225: UP 1.2 percent at 38,902.50 (close)Hong Kong – Hang Seng Index: UP 1.8 percent at 19,925.81 (close)Shanghai – Composite: UP 0.1 percent at 3,244.38 (close)New York – Dow: Closed for public holidayEuro/dollar: UP at $1.0404 from $1.0272 on FridayPound/dollar: UP at $1.2302 from $1.2168Dollar/yen: DOWN at 155.67 yen from 156.20 yenEuro/pound: UP at 84.56 pence from 84.41 penceWest Texas Intermediate: DOWN 1.7 percent at $76.57 per barrelBrent North Sea Crude: DOWN 1.2 percent at $79.80 per barrel

Bitcoin hit a record high above $109,000 on Monday as Donald Trump, who plans to deregulate the cryptocurrency sector and has launched his own “meme coin”, prepares to be sworn in as US president.Bitcoin surged to an all-time peak of $109,241 ahead of Trump’s inauguration ceremony, before falling back to around $107,000.The world’s biggest cryptocurrency has soared nearly 60 percent in value since Trump won the presidential election in early November, which saw it surpass $100,000 for the first time at the start of December.It came after he nominated cryptocurrency backer Paul Atkins to head the US securities regulator, reinforcing optimism that the new president will deregulate the sector. Despite having once branded cryptocurrencies a “scam”, Trump changed his stance and was a major advocate of them during his election campaign.When bitcoin reached the landmark $100,000 level, Trump wrote on his Truth Social platform: “CONGRATULATIONS BITCOINERS!!! $100,000!!! YOU’RE WELCOME!!! Together, we will Make America Great Again!”- $TRUMP -Over the weekend, Trump launched his own cryptocurrency, a so-called meme coin appropriately called $TRUMP, sparking feverish buying that sent its market capitalisation soaring to several billion dollars.Future first lady Melania Trump also issued her own cryptocurrency, $MELANIA.The $TRUMP meme coin, which is designed to capitalise on the popularity of a personality, movement or viral internet trend, was unveiled by the president-elect in a post on Truth Social and X — owned by fellow crypto enthusiast Elon Musk.”Beyond that optimism, Trump policies are expected to be a double-edged sword,” Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said on Monday. “His pro-growth policies and deregulation are expected to benefit the US economy but his tariff policies will certainly lead inflation higher.” Cryptocurrencies have made headlines since their creation, from their extreme volatility to the collapse of several industry giants, foremost among them the FTX exchange platform.Bitcoin was conceived in 2008 by a person or group writing under the name Satoshi Nakamoto.It was pitched as a way to break free of mainstream financial institutions by establishing a decentralised platform for transactions.With Trump in the White House, “there are expectations that crypto will be brought more into the financial mainstream, with clearer rules about how individuals and firms can trade such assets”, Susannah Streeter, head of money and markets at Hargreaves Lansdown, said Monday.Trump has vowed to make the United States the “bitcoin and cryptocurrency capital of the world”.The digital currency is created — or “mined” — as a reward when powerful computers solve complex problems to validate transactions made on a meddle-proof register known as the blockchain.Bitcoin has long been criticised for being the currency of choice for making untraceable payments on the so-called dark web, a hidden part of the internet used for criminal activities.The asset has also come under attack for facilitating money laundering and allowing extortion through ransomware attacks.Its carbon footprint is also under scrutiny since mining cryptocurrencies requires huge amounts of energy.burs-bcp/js

Most Asian markets rose Monday following a rally on Wall Street and a record-breaking day in Europe, with sentiment boosted by positive talks between Donald Trump and Chinese President Xi Jinping that soothed worries about the incoming US leader’s second term.A sense of caution has permeated trading floors ahead of the tycoon’s inauguration later in the day after he warned he would impose hefty tariffs on imports, fanning fears of another debilitating trade war between the economic superpowers.Pledges to slash taxes, regulations and immigration have also led to concerns that inflation could be reignited and force the Federal Reserve to hold off cutting interest rates further, with some observers even flagging possible hikes.Still, while dealers nervously eye the next four years, there was some relief after news of the phone call on Friday.Trump and Xi vowed to improve ties between Washington and Beijing, with the Chinese leader hoping for a “good start” to relations and the president-elect saying “it is my expectation that we will solve many problems together”.On his Truth Social media platform, Trump added: “We discussed balancing Trade, Fentanyl, TikTok, and many other subjects.”President Xi and I will do everything possible to make the World more peaceful and safe!”Their comments provided some cheer to markets, with the S&P 500 ending up one percent and Nasdaq 1.5 percent. London and Frankfurt had earlier chalked up fresh all-time highs.”The start of a new presidency often brings fresh energy — and uncertainty — to the financial markets,” said Saxo Markets chief investment strategist Charu Chanana.”With Donald Trump’s inauguration, investors are bracing for significant policy shifts. This could mean changes in taxes, spending, and trade agreements.”Hong Kong led gains in Asia amid hopes that the feared trade war can be averted, with Tokyo, Shanghai, Sydney, Taipei, Manila, Mumbai, Bangkok, Singapore and Jakarta also rising. Manila and Wellington fell.London and Frankfurt extended gains at the open while Paris also rose.Seoul slipped after the Bank of Korea cut its 2025 economic growth forecast owing to weakening sentiment and political risks following last month’s brief declaration of martial law by President Yoon Suk Yeol and the political crisis it has sparked.There was little relief from news that the South Korean central bank had unveiled a $250 billion support package for its exporters, citing the risk of possible tariffs by Trump.Bitcoin hit a fresh record of $109,241 on hopes for more supportive measures from Trump, who has pledged to make the United States the “bitcoin and cryptocurrency capital of the world”.On currency markets the yen edged up against the dollar ahead of the Bank of Japan’s policy meeting this week, with expectations that it will hike rates for the third time since March.Economists at Moody’s Analytics said the central bank has “struggled to provide consistent guidance on policy” but that recent hawkish comments from the governor and deputy governor “suggest further tightening is on the horizon”.”The yen has weakened significantly since the BoJ decided to skip a rate hike in December. This, combined with a series of hotter-than-expected inflation prints for consumer, producer and import prices, raises the odds of monetary policy action in January,” they added. – Key figures around 0815 GMT -Tokyo – Nikkei 225: UP 1.2 percent at 38,902.50 (close)Hong Kong – Hang Seng Index: UP 1.8 percent at 19,925.81 (close)Shanghai – Composite: UP 0.1 percent at 3,244.38 (close)London – FTSE 100: UP 0.1 percent at 8,509.54Euro/dollar: UP at $1.0313 from $1.0272 on FridayPound/dollar: UP at $1.2213 from $1.2168Dollar/yen: DOWN at 156.00 yen from 156.20 yenEuro/pound: UP at 84.44 pence from 84.41 penceWest Texas Intermediate: FLAT at $77.88 per barrelBrent North Sea Crude: DOWN 0.3 percent at $80.56 per barrelNew York – Dow: UP 0.8 percent at 43,487.83 (close)

TikTok restored service in the United States Sunday after briefly going dark, as a law banning the wildly popular app on national security grounds came into effect.The video-sharing platform credited President-elect Donald Trump, who retakes power on Monday, for making the reversal possible — though the outgoing administration of President Joe Biden had earlier said that it would not enforce any ban. TikTok had shut down in the United States late Saturday as a deadline loomed for its Chinese owners ByteDance to sell its US subsidiary to non-Chinese buyers.Earlier Sunday, as millions of dismayed users found themselves barred from the app, Trump promised to issue an executive order delaying the ban to allow time to “make a deal.”He also called in a post on his Truth Social platform for the United States to take part ownership in TikTok.Trump said he “would like the United States to have a 50 percent ownership position in a joint venture,” arguing that the app’s value could surge to “hundreds of billions of dollars — maybe trillions.””By doing this, we save TikTok, keep it in good hands,” wrote Trump, who had previously backed a TikTok ban and during his first term in office made moves towards one.In a statement posted on X following Trump’s comments, TikTok said it “is in the process of restoring service.””We thank President Trump for providing the necessary clarity and assurance to our service providers that they will face no penalties providing TikTok to over 170 million Americans.”Beijing on Monday urged Washington to listen to “rational voices” over the ban.Foreign ministry spokeswoman Mao Ning also said China attached “great importance to and protect data privacy and security”.”We have never and will not ask companies or individuals to collect or provide foreign data located in foreign countries in a way that violates local laws,” she said.TikTok, which was back online in the United States by Sunday afternoon, did not address Trump’s call for part American ownership of the app.Wedbush Securities analyst Dan Ives told AFP the episode “marked a big win for TikTok and a political win for Trump,” likening the episode to “high-stakes poker between the US and China.”- President proof? -At a pre-election rally Sunday evening at a Washington sports arena, Trump hammered home his enthusiasm for saving the app, telling the crowd: “Frankly, we have no choice, we have to save it,” while indicating that there were a “lot of jobs” involved.”We don’t want to give our business to China, we don’t want to give our business to other people,” Trump told his supporters.The law allows for a 90-day delay of the ban if the White House can show progress toward a viable deal, but so far ByteDance has flatly refused any sale.The Biden administration said it would leave enforcement of the law to Trump.From teenage dancers to grandmothers sharing cooking tips, TikTok has been embraced for its ability to transform ordinary users into global celebrities when a video goes viral.But it is also rife with disinformation, and its Chinese ownership has long spurred national security fears, internationally as well as in the United States.Sunday’s blackout came after the US Supreme Court on Friday upheld the legislation banning it pending any sale.Trump, who signed an executive order stepping up pressure on ByteDance to sell in 2020, has since credited the app with connecting him to younger voters.It is unclear what the incoming president can do to lift the ban unless ByteDance ultimately sells, however.”Congress wrote this law to be virtually president-proof,” warned Adam Kovacevich, chief executive of industry trade group Chamber of Progress.Besides removing TikTok from app stores, the law requires Apple and Google to block new downloads, with the companies liable for penalties of up to $5,000 per user if the app is accessed.Oracle, which hosts TikTok’s servers, would also be legally obligated to enforce the ban.- ‘I love TikTok’ -In Europe, TikTok’s suspension drew praise from the foreign minister of Estonia, Margus Tsahkna, who said on X that banning the platform “must be considered in Europe as well.”The ban also became a hot topic at the Australian Open in Melbourne, where American tennis player Coco Gauff scrawled “RIP TikTok USA” on a courtside camera.Meanwhile, in the US state of Wisconsin, a man was accused of setting a fire early Sunday at an unoccupied building where a member of Congress keeps an office “in response to recent talks of a TikTok ban,” police in the city of Fond du Lac said in a statement.A last-minute proposal made Saturday by the highly valued start-up Perplexity AI offered a merger with the US subsidiary of TikTok, a source with knowledge of the deal told AFP.The proposal did not include a price but the source estimated it would cost at least $50 billion.burs-oho/fox