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OpenAI chief Sam Altman signed a deal with tech giant Kakao in South Korea on Tuesday as the US firm seeks new alliances after Chinese rival DeepSeek shook the global AI industry.Kakao, which owns an online bank, South Korea’s largest taxi-hailing app, and a messaging service, announced a partnership allowing them to use ChatGPT for its new artificial intelligence services, joining a global alliance led by OpenAI amid intensifying competition in the sector.”We’re excited to bring advanced AI to Kakao’s millions of users and work together to integrate our technology into services that transform how Kakao’s users communicate and connect,” said Altman.”Kakao has a deep understanding of how technology can enrich everyday lives,” he added.Kakao’s CEO Shina Chung said the company was “thrilled” to establish a strategic collaboration with OpenAI.Altman’s company is part of the Stargate drive announced by US President Donald Trump to invest up to $500 billion in AI infrastructure in the United States.But AI newcomer DeepSeek has sent Silicon Valley into a frenzy, with some calling its high performance and supposed low cost a wake-up call for US developers.”Highly Aware”At a closed meeting with South Korean AI developers, Altman admitted OpenAI “hasn’t found a strategy yet” to respond to DeepSeek. When asked by an executive of Wrtn Technologies — a Seoul-based AI firm — about his plans for addressing the rise of open-source models such as DeepSeek, Altman said there is “definitely room for open source”.”We haven’t figured out a strategy yet, but we want to do more,” he added. Altman seems “quite nervous internally but it appears OpenAI is indeed highly aware of, and influenced by, DeepSeek’s impact”, said Kim Jang-hyun, a data science Professor at Sungkyunkwan University.. “With South Korea being a country known for its high loyalty, frequent usage, and tech-savvy user base,” OpenAI might use the country as “a testing ground before expanding globally”, Kim told AFP. Also on Altman’s agenda were meetings with two top South Korean chipmakers, Samsung and SK hynix, both key suppliers of advanced semiconductors used in AI servers.Altman met with SK Group chairman Chey Tae-won and SK hynix CEO Kwak Noh-jung in Seoul to discuss collaboration on AI memory chips, including high bandwidth memory (HBM), and AI services.He is also expected to meet with Samsung Electronics chairman Lee Jae-yong later Tuesday. Jaejune Kim, executive vice president of Samsung’s memory business, said last week that the company was “monitoring industry trends considering various scenarios” when asked about DeepSeek.DeepSeek’s performance has sparked a wave of accusations that it has reverse-engineered the capabilities of leading US technology.OpenAI warned last week that Chinese companies are actively attempting to replicate its advanced AI models, prompting closer cooperation with US authorities.OpenAI says rivals are using a process known as distillation in which developers creating smaller models learn from larger ones by copying their behaviour and decision-making patterns — similar to a student learning from a teacher.The company is itself facing multiple accusations of intellectual property violations, primarily related to the use of copyrighted materials in training its generative AI models.

Japanese video game giant Nintendo on Tuesday cut its annual net profit forecast after hardware and software sales for its Switch console fell in the first three quarters.The Switch, which is both a handheld and TV-compatible device, hit shelves in 2017 and became a must-have gadget among all age groups during pandemic lockdowns.Nintendo announced in January that it will release the console’s hotly anticipated successor — the Switch 2 — in 2025, but stopped short of revealing details such as pricing.On Tuesday, Nintendo revised its full-year net profit forecast to 270 billion yen ($1.7 billion) from 300 billion yen.”Nintendo Switch hardware and software sales through the third quarter were below expectations,” the company said in its explanation of the profit warning.”The sales trend” in the April-December period and “prospects for the remainder of the fiscal year, as well as a reevaluation of the assumed exchange rate” were also behind the decision.Over the nine months, net profit dropped 42 percent to 237 billion yen and sales tumbled 31 percent to 956 billion yen.The company also lowered its Switch hardware sales forecast to 11 million units from 12.5 million units.”Sales of both hardware and software declined compared to the same period of last fiscal year, when sales were substantially driven by ‘The Legend of Zelda: Tears of the Kingdom’… and ‘Super Mario Bros. Wonder’,” Nintendo said.”Going forward, we will continue to release new offerings so even more consumers keep playing Nintendo Switch,” it added.Nintendo has promised to reveal more details about the Switch 2 in early April after it released a brief but slick video preview in January.In the two-minute video, the new console looks bigger but is broadly similar in design to the original hybrid Switch.Serkan Toto from Tokyo consultancy Kantan Games told AFP ahead of the earnings release that “Nintendo was way too optimistic about Switch 1 sales when they released their hardware sales forecast for the current fiscal year.”Toto said that while “the initial reaction by gamers was mixed” to the “drip feed” Switch 2 announcement, the popularity of the new console would be key.”Switch 2 absolutely must be a success, as Nintendo has developed into a single-platform company, he said.”For decades, Nintendo actually ran two distinct businesses, namely TV versus handheld gaming,” but now “Nintendo has no Plan B in case a console fails”.

China on Tuesday said it would probe US tech giant Google over violations of anti-monopoly laws after Washington slapped 10 percent levies on Chinese goods.Beijing’s State Administration for Market Regulation said the US tech giant was “suspected of violating the Anti-Monopoly Law of the People’s Republic of China”.It has “launched an investigation into Google in accordance with the law” as a result, the administration said in a statement.It did not provide further details about the allegations against Google.The US tech behemoth’s core search engine and many of its services are blocked in mainland China, where US internet titans have long struggled with doing business due to the “Great Firewall” that blocks politically sensitive content.Google in 2011 abandoned its Chinese-language search engine in the mainland and transferred it to Hong Kong.By 2014, China blocked the last remaining way to access Google’s email service Gmail.Beijing also said Tuesday it would add US fashion group PVH Corp. — which owns Tommy Hilfiger and Calvin Klein — and biotech giant Illumina to a list of “unreliable entities”.The move would “safeguard national sovereignty, security and development interests, in accordance with relevant laws”, China’s commerce ministry said in a statement.”The above two entities violate normal market transaction principles, interrupt normal transactions with Chinese enterprises, and take discriminatory measures against Chinese enterprises,” it added.China in September said it was investigating PVH for an “unreasonable” boycott of cotton from its Xinjiang region, where Beijing is accused of widespread rights violations.AFP has reached out to all three firms for comment.The United States on Saturday announced sweeping measures against major trade partners, with goods from China facing an additional 10 percent tariff on top of existing duties.Trump said the measures aimed to punish countries for failing to halt flows of illegal migrants and drugs including fentanyl into the United States.

Asian equities rose with the Mexican peso and Canadian dollar Tuesday after Donald Trump said he would delay the imposition of stiff tariffs on imports from the US neighbours, soothing trade war worries for now.But early euphoria was tempered somewhat after China announced levies on some imports of US goods as Washington’s measures kicked in, with no news that the two sides had reached an agreement to pause.Markets from Japan to New York were sent tumbling Monday after news at the weekend that Trump had signed off 25 percent duties against Mexico and Canada, fanning concerns for the stuttering global economy.Hours before the tariffs were due to take effect, Trump said he had struck deals with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum on immigration and fentanyl, and would postpone the measures for a month.Talks on final deals would continue with both countries, he added.The tycoon added that he would hold talks with Beijing “probably in the next 24 hours” to avoid new 10 percent tariffs on Chinese imports.However, with the deadline for the tariffs passing at 0500 GMT, China unveiled tariffs on a range of US goods, including crude, coal, liquefied natural gas, agricultural machinery, large-displacement vehicles and pickup trucks.China, Canada and Mexico are the United States’ three biggest trading partners and had warned they would retaliate.News of the deals with Mexico and Canada saw the Mexican peso surge more than three percent — having tumbled to a three-year low on Monday — before paring the gains slightly. The Canadian dollar jumped more than one percent.Asian stock markets also advanced, though unease about the lack of movement on the Chinese tariffs saw traders’ early optimism fade.Hong Kong, which rose more than three percent in the morning, was up more than one percent, while Tokyo, Seoul, Manila, Sydney, Mumbai, Bangkok, Wellington and Taipei were also in the green.The euro and British pound extended losses after Trump warned the European Union would be next in the firing line, while he did not rule out tariffs against Britain.”A risk is that this is the beginning of a tit-for-tat trade war, which could result in lower GDP growth everywhere, higher US inflation, a stronger dollar and upside pressure on US interest rates,” said Stephen Dover, chief market strategist and head of Franklin Templeton Institute.”At the margin, these tariffs should encourage more domestic production of goods in the United States.  However, the uncertainty surrounding the permanence of these tariffs makes it challenging for companies to make informed capital investment decisions.”The volatile start to February on markets follows their rollercoaster ride last week after China’s DeepSeek unveiled a cheaper artificial intelligence model rivalling those of US tech giants, sparking questions over the vast sums invested in the sector in recent years.”One thing we can say for sure. Markets are going to remain subject to massive headline risk in coming hours… days… and years,” Ray Attrill at National Australia Bank warned.Gold spot prices held gains after spiking to a new record high of $2,830.74 on Monday, having retreated from last week’s all-time peak owing to the stronger dollar and as traders sought out the metal as a safe haven from uncertainty.- Key figures around 0530 GMT -Tokyo – Nikkei 225: UP 0.7 percent at 38,796.51Hong Kong – Hang Seng Index: UP 1.6 percent at 20,533.16 Shanghai – Composite: Closed for a holidayEuro/dollar: DOWN at $1.0290 from $1.0302 on MondayPound/dollar: DOWN at $1.2390 from $1.2407Dollar/yen: UP at 155.08 yen from 154.80 yenEuro/pound: DOWN at 83.00 pence from 83.03 penceWest Texas Intermediate: DOWN 1.6 percent at $72.00 per barrelBrent North Sea Crude: DOWN 1.0 percent at $75.21 per barrelNew York – Dow: DOWN 0.3 percent at 44,421.91 (close)London – FTSE 100: DOWN 1.0 percent at 8,583.56 (close)

OpenAI chief Sam Altman inked a deal with tech giant Kakao in South Korea on Tuesday as the US firm seeks new alliances after Chinese rival DeepSeek shook the global AI industry.Kakao, which owns an online bank, South Korea’s largest taxi-hailing app and KakaoTalk, announced a partnership allowing them to use ChatGPT for its new artificial intelligence services, joining a global alliance led by OpenAI amid intensifying competition in the sector.Altman’s company is part of the Stargate drive announced by US President Donald Trump to invest up to $500 billion in AI infrastructure in the United States.But AI newcomer DeepSeek has sent Silicon Valley into a frenzy, with some calling its high performance and supposed low cost a wake-up call for US developers.”We’re excited to bring advanced AI to Kakao’s millions of users and work together to integrate our technology into services that transform how Kakao’s users communicate and connect,” said Altman.”Kakao has a deep understanding of how technology can enrich everyday lives,” he added.Kakao’s CEO Shina Chung said the company was “thrilled” to establish a “strategic collaboration” with OpenAI.Also on Altman’s agenda were meetings with two top South Korean chipmakers, Samsung and SK hynix, both key suppliers of advanced semiconductors used in AI servers.Altman met with SK Group chairman Chey Tae-won and SK hynix CEO Kwak Noh-jung in Seoul to discuss collaboration on AI memory chips, including high bandwidth memory (HBM), and AI services.He is also expected to meet with Samsung Electronics chairman Lee Jae-yong later Tuesday. Jaejune Kim, executive vice president of Samsung’s memory business, said last week that the company was “monitoring industry trends considering various scenarios” when asked about DeepSeek.DeepSeek’s performance has sparked a wave of accusations that it has reverse-engineered the capabilities of leading US technology, such as the AI powering ChatGPT.OpenAI warned last week that Chinese companies are actively attempting to replicate its advanced AI models, prompting closer cooperation with US authorities.OpenAI says rivals are using a process known as distillation in which developers creating smaller models learn from larger ones by copying their behaviour and decision-making patterns — similar to a student learning from a teacher.The company is itself facing multiple accusations of intellectual property violations, primarily related to the use of copyrighted materials in training its generative AI models.

From retaliatory tariffs on US goods like car parts and soy beans to controls on raw minerals essential for American manufacturing — analysts say China has plenty of options if it wants to reply to fresh US levies.US President Donald Trump over the weekend announced 10 percent tariffs on Chinese products, upping the stakes in a trade confrontation between the global superpowers that started eight years ago in his first term.Beijing in response warned there were “no winners” in a trade war and vowed as yet unspecified countermeasures.News that Canada and Mexico had agreed a deal with Trump to delay 25 percent tariffs on their goods was followed by his announcement that he would be holding talks with China “probably in the next 24 hours” to try for an agreement.But, as the threat of new measures continues to hang over Beijing, eyes are on what officials there have lined up as a response. With its economy still struggling with sluggish consumption and slow growth, observers expect China to keep its powder dry for now — at least until another round of tariffs that could do greater damage.”We expect China not to jump to immediate retaliation following the 10 percent tariff hike, but will keep the doors of negotiation and cooperation open,” UBS bank analysts wrote in a note.”We do not expect China to follow the same strategy as in the first round of tariff hikes in 2018-19.”Bilateral trade totalled more than $530 billion in 2024, according to US data, with exports of Chinese goods to the United States exceeding $400 billion. That was second only to Mexico.But that yawning trade imbalance — $270.4 billion in January-November last year — has long raised hackles in Washington.- Lesson learned? -Key US demands in the first trade war were greater access to China’s markets, broad reform of a business playing field that heavily favours Chinese firms, and a loosening of heavy state controls.This time around Washington has also called for China to crack down on exports to Mexico of chemical components used to make the synthetic opioid fentanyl, responsible for tens of thousands of overdose deaths a year. After long, fraught negotiations during Trump’s first term the two agreed what became known as the “phase one” deal — a ceasefire in the nearly two-year-old trade war.Beijing was quick to retaliate throughout that standoff — imposing tariffs of its own on everything from cars to soybeans, designed to inflict harm on Trump’s voting base in rural America.It also floated restrictions on exports of rare earth metals, of which China dominates global supplies and on which the United States remains heavily dependent.And should a new trade war escalate, “measures could include tariffs, export controls on critical minerals essential for US manufacturing, restricted market access to US firms operating in China, or the depreciation of the yuan”, Harry Murphy Cruise, head of China and Australia economics at Moody’s Analytics, told AFP.But he added Beijing may have learned its lesson from the first standoff.”The tit-for-tat trade war in Trump’s first term benefited no one; it made trade more costly and hindered growth in both countries,” Murphy Cruise said.- China’s weaker position -For now, analysts believe the latest measures won’t bite too hard. “The 10 percent tariff is not a big shock to China’s economy,” Zhang Zhiwei at Pinpoint Asset Management said in a note.”It’s unlikely to change the market expectation on China’s macro outlook this year, which already factored in higher tariffs from the US,” he added.And that could allow China to keep its powder dry in the event Trump’s first wave of tariffs are the prelude to a bigger showdown.The US president has ordered an in-depth review of Chinese trade practices, the results of which are due by April 1.That could serve as a “catalyst for more tariffs”, said Murphy Cruise, pushing Beijing to shift tactics. “This strategy of no retaliation may change if the US imposes additional significant tariffs later on,” UBS economists said.”In such a case, we think China may retaliate on a targeted basis and in a restrained manner, imposing tariffs on selected agricultural products, auto parts, energy,” they said.Experts added that China could also let the value of its currency devalue, increasing the competitiveness of its exports.Trump’s flagged talks with Beijing offer the two sides a chance to step back from the brink of a trade war that could hit hundreds of billions’ worth of goods.”China is looking to diffuse tensions,” Murphy Cruise said.”China’s economy is in a much weaker position this time around; it will be substantially harder to withstand a barrage of tariffs.”

Stock markets slumped Monday over concerns about the global economy after US President Donald Trump announced tariffs on Canada, China and Mexico.Wall Street’s three main indices fell sharply in early trading but clawed back ground after Trump postponed the introduction of tariffs on Mexico for one month.Trump announced on Saturday 25 percent levies on imports from Canada and Mexico and 10 percent new duties on Chinese goods. Talks were still underway on Monday with Canada.The London, Paris and Frankfurt stock markets finished in the red as Trump warned over the weekend that the European Union would be next in the firing line and did not rule out tariffs against Britain.Shares in European automakers were hit particularly hard, with Volkswagen shedding 3.5 percent and Jeep maker Stellantis down more than 4.5 percent. VW makes some cars for the US market in Mexico, while Stellantis has factories in both Canada and Mexico.US auto stocks were also hammered, with Tesla losing 5.2 percent and General Motors 3.2 percent.Asian stock markets finished mostly in the red.”Investors fear that this trade war will result in a significant deterioration in the global economy,” said John Plassard, investment specialist at Swiss asset manager Mirabaud.There was also a sharp selloff across the cryptocurrency sector, with bitcoin slumping almost five percent before rebounding.Saturday’s tariff announcement “caught markets somewhat off guard, despite Trump’s prior hints”, said Daniela Sabin Hathorn, senior market analyst at brokerage Capital.com.”The lack of a clear economic rationale behind this decision — justified primarily as a measure to curb illegal immigration and fentanyl imports — has unsettled investors,” Sabin Hathorn said.The US dollar yo-yoed against major currencies, including the Mexican peso and Canadian dollar.Analysts warn that the tariffs could fuel inflation and drag down economic growth.Trump admitted that Americans may feel economic “pain” from his tariffs, but that it would be “worth the price.”China, Mexico and Canada are the top three US trade partners and have all vowed to retaliate if the tariffs go into effect. The tariffs are “considered a cost that will likely push prices higher and growth lower,” said Jack Ablin of Cresset capital, who noted Trump has threatened tariffs on other countries.”The market is adapting not just to more tariffs, but more headline risk,” he said.Trump’s tariff threats against Europe overshadowed a defence summit in Brussels on Monday.”If we are attacked in terms of trade, Europe — as a true power — will have to stand up for itself and therefore react,” French President Emmanuel Macron said as he arrived for the talks.- Key figures around 2030 GMT -New York – Dow: DOWN 0.3 percent at 44,421.91 (close)New York – S&P 500: DOWN 0.8 percent at 5,994.57 (close)New York – Nasdaq: DOWN 1.2 percent at 19,391.96 (close)London – FTSE 100: DOWN 1.0 percent at 8,583.56 (close)Paris – CAC 40: DOWN 1.2 percent at 7,854.92 (close)Frankfurt – DAX: DOWN 1.4 percent at 21,428.24 (close)Tokyo – Nikkei 225: DOWN 2.7 percent at 38,520.09 (close)Hong Kong – Hang Seng Index: FLAT at 20,217.26 (close)Shanghai – Composite: Closed for a holidayEuro/dollar: DOWN at $1.0302 from $1.0362 on FridayPound/dollar: UP at $1.2407 from $1.2395Dollar/yen: DOWN at 154.80 yen from 155.19 yenEuro/pound: DOWN at 83.03 pence from 83.59 penceBrent North Sea Crude: UP 0.4 percent at $75.96 per barrelWest Texas Intermediate: UP 0.9 percent at $73.16 per barrelburs-jmb/dw

Stock markets tumbled while the dollar rallied and oil prices rose Monday over concerns about the global economy after US President Donald Trump launched trade wars with Canada, China and Mexico.Wall Street’s three main indices fell sharply in early deals.The London, Paris and Frankfurt stock markets were in the red in afternoon trading as Trump warned that the European Union would be next in the firing line and did not rule out tariffs on Britain.Shares in European automakers were hit particularly hard, with Volkswagen shedding 5.7 percent and Jeep maker Stellantis down more than six percent.Asian stock markets finished mostly in the red.”Investors fear that this trade war will result in a significant deterioration in the global economy,” said John Plassard, investment specialist at Swiss asset manager Mirabaud.There was also a sharp selloff across the cryptocurrency sector, with bitcoin slumping almost five percent.Trump announced on Saturday 25 percent levies on imports from Canada and Mexico and 10 percent duties on Chinese goods.The move “caught markets somewhat off guard, despite Trump’s prior hints”, said Daniela Sabin Hathorn, senior market analyst at brokerage Capital.com.”The lack of a clear economic rationale behind this decision — justified primarily as a measure to curb illegal immigration and fentanyl imports — has unsettled investors,” Sabin Hathorn said.Oil prices jumped as the US leader imposed tariffs of 10 percent on Canadian oil imports.The US dollar gained against major currencies, with the Mexican peso and Canadian dollar slumping against the greenback.Analysts warn that the tariffs could fuel inflation and drag down economic growth.Trump admitted that Americans may feel economic “pain” from his tariffs, but that it would be “worth the price”.China, Mexico and Canada are the top three US trade partners and have all vowed to retaliate when the tariffs take effect Tuesday.David Morrison, senior analyst at financial services firm Trade Nation, said it was “painfully apparent” that most investors had believed that Trump’s tariff threats had been a “negotiating tactic that would never be realised in full”.”They appear to be wrong,” he said.Trump said he would speak with the leaders of Mexico and Canada on Monday.”With tariffs set to come in on Tuesday, there is a small window to come to some sort of accommodation. But President Trump has downplayed the chances of a deal before then,” Morrison added.Trump’s tariff threats against Europe overshadowed a defence summit in Brussels on Monday.”If we are attacked in terms of trade, Europe — as a true power — will have to stand up for itself and therefore react,” French President Emmanuel Macron said as he arrived for the talks.- Key figures around 1440 GMT -New York – Dow: DOWN 1.1 percent at 44,063.53 pointsNew York – S&P 500: DOWN 1.4 percent at 5,959.08New York – Nasdaq: DOWN 1.6 percent at 19,313.30London – FTSE 100: DOWN 1.4 percent at 8,554.41Paris – CAC 40: DOWN 1.5 percent at 7,830.07Frankfurt – DAX: DOWN 1.7 percent at 21,366.38Tokyo – Nikkei 225: DOWN 2.7 percent at 38,520.09 (close)Hong Kong – Hang Seng Index: FLAT at 20,217.26 (close)Shanghai – Composite: Closed for a holidayEuro/dollar: DOWN at $1.0255 from $1.0363 on FridayPound/dollar: DOWN at $1.2351 from $1.2392Dollar/yen: DOWN at 154.49 yen from 155.18 yenEuro/pound: DOWN at 83.03 pence from 83.59 penceBrent North Sea Crude: UP 0.5 percent at $76.08 per barrelWest Texas Intermediate: UP 1.2 percent at $73.40 per barrel

A sprawling business empire built by Hong Kong billionaire Li Ka-shing is caught in the crossfire as the extent of Chinese influence over the Panama Canal is debated.US Secretary of State Marco Rubio said last week it was “unacceptable” for Hong Kong-based companies to control the canal’s entry and exit points, arguing they could shut down transit if Beijing ordered them to.Panama has now announced an audit into the subsidiary of Li’s CK Hutchison Holdings, which manages two of the canal’s five ports. Here’s what you need to know about the Panama port operator and its ties to China:- Who runs the ports? -Hutchison Ports PPC — which also uses the name Panama Ports Company SA — has managed the port of Cristobal on the canal’s Atlantic side and Balboa on the Pacific side since 1997 via a concession from the Panama government.That arrangement was automatically renewed in 2021.Hutchison Ports said last month that it is the “only port operator in the country where the state is a shareholder”, and that it had paid the Panama government $59 million in the past three years. It said its workforce is almost entirely Panamanian.Parent company CK Hutchison Holdings is one of Hong Kong’s largest conglomerates, spanning finance, retail, infrastructure, telecoms and logistics.The company has a hand in running 53 ports in 24 nations, including in Britain, Spain and Australia.- Hong Kong’s ‘Superman’ -CK Hutchison was built from nothing by Li — now Hong Kong’s richest man, nicknamed “Superman” for his business acumen.His company Cheung Kong — named after China’s Yangtze River — thrived in Hong Kong’s property market during the British colonial era and began expanding overseas in the 1980s.In 2015, CK Hutchison was born out of a restructuring. Three years later, Li stepped down as company chairman at age 89 and handed control to his eldest son Victor.The firm and its subsidiaries operate a range of businesses, including ports, in mainland China.Li was known to have close ties with top Chinese leaders before Xi Jinping came to power.Victor Li is a long-time member of the Chinese People’s Political Consultative Conference, a top political advisory body.- Exposure to China -Rubio says the current arrangement is not in the national interests of the United States. If Beijing ordered a shutdown of the canal, a Hong Kong firm would have no choice but to comply as “a company based in Hong Kong is the government of China”, Rubio said last week, without specifying CK Hutchison by name.A former British colony, Hong Kong was handed over to China in 1997 under a “One Country, Two Systems” framework which promised a high degree of autonomy and a separate legal and financial system.But Beijing has remoulded Hong Kong in its authoritarian image after the city saw huge and sometimes violent pro-democracy protests in 2019.Critics say the city’s two subsequently imposed national security laws curtail rights and undermine the free and open business environment that made Hong Kong an international finance hub.In 2020, Israel rejected an infrastructure bid from CK Hutchison after then US secretary of state Mike Pompeo warned about Chinese involvement.- ‘Never interfered’ -A Hong Kong government spokesperson told AFP that the city’s authorities have “never interfered in the commercial operation of Hong Kong companies”.The financial hub has been a “staunch supporter of the multilateral trading system and opposes any country imposing measures or restrictions that undermine normal trade or business operations”, the spokesperson said.CK Hutchison did not respond to questions about canal operations. Last month the company directed AFP to a statement by its Panama subsidiary.

Stock markets slumped, the dollar rallied and oil prices rose Monday as US President Donald Trump eyed more tariffs after launching trade wars with Canada, China and Mexico, heaping pressure on the global economy.Asian equity indices mostly slid by the close, while in Europe the push lower was driven by Frankfurt with a fall of two percent around midday.Paris shed nearly two percent as shares prices of European automakers fell sharply.Having launched tariffs on US neighbours and China at the weekend, Trump said he would impose levies on the European Union. He added that non-EU member Britain would likely avoid immediate tariffs, helping the London stock market to limit losses.”Investors fear that this trade war will result in a significant deterioration in the global economy,” said John Plassard, investment specialist at Swiss asset manager Mirabaud.There was a sharp selloff across the cryptocurrency sector, with bitcoin slumping around seven percent.Oil prices rallied, however, as Trump’s tariffs on Canada and Mexico include the commodity.Haven investment gold slipped, having hit a fresh record above $2,800 an ounce last week.Trump’s action sees 25 percent levies on imports from Canada and Mexico and 10 percent duties on Chinese goods.Analysts at Oxford Economics said the tariffs could see Mexican inflation surge to six percent annually, from 4.2 percent in December. The peso sank versus the dollar Monday.Chief EY economist Gregory Daco said Canada’s economy could shrink 2.7 percent this year and 4.3 percent next year.Canada said it would file a World Trade Organization claim against the United States, while Mexican President Claudia Sheinbaum announced that retaliatory tariffs would be imposed on US products.China’s trade ministry said Beijing would take “corresponding countermeasures”.As for the EU, the bloc must show its muscle in the face of threatened tariffs, French President Emmanuel Macron warned.”If we are attacked in terms of trade, Europe — as a true power — will have to stand up for itself and therefore react,” Macron said as he arrived for leaders’ talks in Brussels.In Asia, the Year of the Snake started with a nasty bite for stock markets.Tokyo, Seoul and Jakarta each shed more than two percent while Sydney, Bangkok and Wellington were each off more than one percent. Singapore and India also fell, while Hong Kong gave up early deep losses to end only marginally down. Shanghai remained closed for a holiday.Taipei plunged more than three percent, with chip titan and market-heavyweight TSMC diving 5.7 percent on the first day of trade since China’s DeepSeek unveiled a cheaper artificial intelligence model rivalling those of US tech giants.- Key figures around 1045 GMT -London – FTSE 100: DOWN 1.3 percent at 8,564.52 pointsParis – CAC 40: DOWN 1.8 percent at 7,811.37Frankfurt – DAX: DOWN 1.8 percent at 21,344.59Tokyo – Nikkei 225: DOWN 2.7 percent at 38,520.09 (close)Hong Kong – Hang Seng Index: FLAT at 20,217.26 (close)Shanghai – Composite: Closed for a holidayNew York – Dow: DOWN 0.8 percent at 44,544.66 (close)Euro/dollar: DOWN at $1.0239 from $1.0363 on FridayPound/dollar: DOWN at $1.2310 from $1.2392Dollar/yen: DOWN at 154.89 yen from 155.18 yenEuro/pound: DOWN at 83.21 pence from 83.59 penceBrent North Sea Crude: UP 1.0 percent at $76.43 per barrelWest Texas Intermediate: UP 1.9 percent at $73.88 per barrel