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Stock markets dropped Friday after US President Donald Trump ended a lull in his trade war with threats of massive tariffs on Apple products and imports from the European Union.Wall Street’s main indexes spent the entire session in the red. The biggest loser of the three was the Nasdaq, weighed down by a three percent fall in Apple.Paris and Frankfurt ended with losses of around 1.5 percent, with shares in luxury and car companies taking a hit after Trump threatened 50 percent tariffs on EU goods.London’s FTSE 100, which initially rose, also ended in the red.Germany’s DAX had also been higher earlier in the day as German economic growth data was revised up.”What is somewhat of a surprise is the fact that the EU will now face a considerably higher tariff rate than China, an almost unthinkable scenario just a matter of weeks ago,” said Lindsay James, investment strategist at Quilter.”It is highlighting that much of this policy is designed to be punitive, rather than having any economic credibility to it.”Oil prices rebounded, meanwhile, having earlier dropped by around one percent, while the dollar remained under pressure.Trump’s new threats revived investor concerns about his trade policies after a recent deal with Britain and a tariffs truce with China.”All the optimism over trade deals wiped out in minutes –- seconds, even,” said Fawad Razaqzada, market analyst at StoneX.Trump said on his Truth Social platform that he was “recommending a straight 50% Tariff on the European Union” from June 1 as “discussions with them are going nowhere!””The EU is one of Trump’s least favorite regions, and he does not seem to have good relations with its leaders, which increases the chance of a prolonged trade war between the two,” said Kathleen Brooks, research director at trading platform XTB.The US president had announced 20 percent tariffs on EU goods last month but suspended the measure to give space for negotiations.Trump, however, maintained a 10 percent levy on imports from the 27-nation bloc and nearly every other nation around the world, along with 25 percent duties on the car, steel and aluminium industries.He also threatened on Friday to hit Apple with a 25 percent tariff if its iPhones are not manufactured in the United States.Trump initially said the tariff would apply only to Apple — an unusual move in singling out a specific company in trade policy. However, he later expanded the threat to include all smartphone manufacturers, telling reporters the levy could also hit Samsung.Trump’s social media outburst rocked stock markets which had steadied following losses over concerns about the ballooning US debt and rising US borrowing costs.- Key figures at around 2050 GMT -New York – Dow: DOWN 0.6 percent at 41,603.07 (close)New York – S&P 500: DOWN 0.7 percent at 5,802.82 (close)New York – Nasdaq Composite: DOWN 1.0 percent at 18,737.21 (close)London – FTSE 100: DOWN 0.2 percent at 8,717.97 (close)Paris – CAC 40: DOWN 1.7 percent at 7,734.40 (close)Frankfurt – DAX: DOWN 1.5 percent at 23,629.58 (close)Tokyo – Nikkei 225: UP 0.5 percent at 37,160.47 (close)Hong Kong – Hang Seng Index: UP 0.2 percent at 23,601.26 (close)Shanghai – Composite: DOWN 0.9 percent at 3,348.37 (close)Euro/dollar: UP at $1.1369 from $1.1281 on ThursdayPound/dollar: UP at $1.3535 from $1.3412Dollar/yen: DOWN at 142.57 yen from 144.01 yenEuro/pound: DOWN at 83.96 pence from 84.06 penceBrent North Sea Crude: UP 0.5 percent at $64.78 per barrelWest Texas Intermediate: UP 0.5 percent at $61.53 per barrel

President Donald Trump rekindled the US trade war on Friday, threatening to impose a 50 percent tariff on the European Union ahead of planned trade talks — and drawing a strong response from European politicians. The new duties on Brussels would, if imposed, dramatically raise Washington’s current baseline levy of 10 percent, and fuel simmering tensions between the world’s biggest economy and its largest trading bloc.Lamenting that negotiations with the EU “are going nowhere,” Trump said on Truth Social on Friday that he is recommending “a straight 50% Tariff on the European Union, starting on June 1, 2025.”The EU had been “formed for the primary purpose of taking advantage of the United States on TRADE,” he said, taking a swipe at “difficult” negotiations.European leaders and senior politicians reacted with dismay to Trump’s announcement, and called for de-escalation. “We are sticking to our position: de-escalation, but ready to respond,” France’s trade minister Laurent Saint-Martin posted on the X social media platform. Irish Prime Minister Micheal Martin called Trump’s announcement “enormously disappointing,” writing on X that “tariffs are damaging to all sides.””We do not need to go down this road,” he said, without spelling out how Europe might respond.An EU spokesperson declined to comment on Trump’s latest tariff threats on Friday, telling reporters that there was a pre-planned call later in the day between EU Trade Commissioner Maros Sefcovic and US Trade Representative (USTR) Jamieson Greer. Wall Street stocks fell on the news, before paring some losses.”The administration had kind of hinted that they were considering imposing reciprocal tariffs on countries that weren’t negotiating in good faith,” Barclays senior US economist Jonathan Millar told AFP. “And this kind of tweet this morning by the president suggests that that’s becoming a more likely possibility,” he said in an interview. – ‘Difficult’ negotiations -Trump imposed a new sweeping “baseline” tariff of 10 percent against most countries last month, and even steeper duties on dozens of trading partners — including a 20 percent levy on the EU — which have since been paused for 90 days to allow for trade talks. The Trump team has claimed some early successes in its deals struck with Britain and China, but talks with the EU have failed to make much progress, with Brussels recently threatening to hit US goods worth nearly 100 billion euros ($113 billion) with tariffs if it does not lower the duties on European goods.The United States ran a trade deficit with the EU totalling $235.6 billion last year, up 12.9 percent from a year earlier, according to data from USTR. The EU has noted that the overall trade deficit — including services — is much smaller, in the region of 50 billion euros, or around $56 billion. Speaking to Bloomberg Television on Friday, US Treasury Secretary Scott Bessent said the lower 10 percent tariff rate was “contingent on countries or trading blocs coming and negotiating in good faith.””And I think the president was getting frustrated with the EU,” he said.Spokespeople for USTR, the Commerce Department, the White House, and the Treasury Department did not respond to a request for comment on the details of Trump’s tariff plans. – US-made iPhones ‘not feasible’ -In a separate message posted Friday, Trump blasted Apple for failing to move iPhone production to the United States despite his repeated requests, and threatened new duties of “at least” 25 percent if they did not comply.Trump’s criticism of the US tech titan revived the pressure on Apple’s chief executive Tim Cook to do more to bring manufacturing jobs back to the United States from Asia. Most of Apple’s iPhone assembly happens in China, although the company has in recent years been shifting assembly to other countries, including India.Apple did not respond to a request for comment. One problem with Trump’s proposal, according to Wedbush Securities analyst Dan Ives, is that reshoring iPhone production to the United States “is a fairy tale that is not feasible.”Ives predicted moving assembly back across the Pacific Ocean could push up iPhone prices to $3,500. Another issue Trump may face is that he cannot impose tariffs — a form of import taxes — on a specific company, according to Georgetown University law professor Jennifer Hillman.If he wanted to, Trump could impose economic sanctions against a company like Apple, she told AFP by email. But, she added, those measures would “not take the form of tariffs.”   burs-da/md

Stock markets tumbled Friday after US President Donald Trump ended a lull in his trade war with threats of massive tariffs on Apple products and imports from the European Union.Wall Street’s main indexes fell at the open, with the broad-based S&P 500 shedding 1.2 percent and the tech-heavy Nasdaq falling by 1.5 percent as Apple shares sank 2.5 percent.The Paris CAC 40 index was down 2.3 percent in afternoon deals while the Frankfurt DAX retreated by 1.8 percent, with shares in luxury and car companies taking a hit.London’s FTSE 100, which had been up earlier, fell into the red. The DAX had also been higher earlier in the day as German economic growth data was revised up.Oil prices also reversed course to fall by around one percent while the dollar remained under pressure.Trump’s new threats revived investor concerns about his trade policies after a recent deal with Britain and a tariffs truce with China.”All the optimism over trade deals wiped out in minutes –- seconds, even,” said Fawad Razaqzada, market analyst at StoneX.Trump said on his Truth Social platform that he was “recommending a straight 50% Tariff on the European Union” from June 1 as “discussions with them are going nowhere!””The EU is one of Trump’s least favourite regions, and he does not seem to have good relations with its leaders, which increases the chance of a prolonged trade war between the two,” said Kathleen Brooks, research director at XTB trading platform.The US president had announced 20 percent tariffs on EU goods last month but suspended the measure to give space for negotiations.Trump, however, maintained a 10 percent levy on imports from the 27-nation bloc and nearly every other nation around the world, along with 25 percent duties on the car, steel and aluminium industries.He also threatened on Friday to hit Apple with a 25 percent tariff if its iPhones are not manufactured in the United States.”Trump’s attack on Apple looks like one of his negotiating tactics to us,” Brooks said, noting that the threat comes as his tax-cut plan faces Senate debate after passing the lower house of Congress.”This looks like a negotiating maneuver to get Apple to pay the bulk of their tax in the US, including taxes for non-US sales,” she said.”If this happens, then we would not be surprised to see the iPhone tariff disappear.”Trump’s social media outburst rocked stock markets which had steadied following losses over concerns about the ballooning US debt and rising US borrowing costs.Investors were already on edge after Moody’s stripped the United States of its top-tier credit rating and the House of Representatives approved Trump’s tax cut plan, which critics say would add to the country’s debt pile.The yield — or borrowing costs — on 10-year and 30-year US government bonds surged this week as investors worry about the fiscal health of the world’s biggest economy.The yields eased late Thursday.Trump’s tax package, which now goes to the Senate, had faced scepticism from fiscal hawks who fear the country is headed for bankruptcy.Independent analysts warn it would increase the deficit by as much as $4 trillion over a decade.But the White House insists it will spur growth of up to 5.2 percent, ensuring it adds nothing to the $36 trillion national debt — growth projections that are well outside the mainstream consensus.- Key figures at around 1330 GMT -New York – Dow: DOWN 1.0 percent at 41,427.91 pointsNew York – S&P 500: DOWN 1.1 percent at 5,778.02New York – Nasdaq Composite: DOWN 1.5 percent at 18,644.41London – FTSE 100: DOWN 0.6 percent at 8,683.32Paris – CAC 40: DOWN 2.3 percent at 7,685.87Frankfurt – DAX: DOWN 1.8 percent at 23,568.04Tokyo – Nikkei 225: UP 0.5 percent at 37,160.47 (close)Hong Kong – Hang Seng Index: UP 0.2 percent at 23,601.26 (close)Shanghai – Composite: DOWN 0.9 percent at 3,348.37 (close)Euro/dollar: UP at $1.1326 from $1.1281 on ThursdayPound/dollar: UP at $1.3500 from $1.3419Dollar/yen: DOWN at 142.81 yen from 143.99 yenEuro/pound: DOWN at 83.91 pence from 84.07 penceBrent North Sea Crude: DOWN 1.0 percent at $63.83 per barrelWest Texas Intermediate: DOWN 1.0 percent at $60.62 per barrel

European stock markets tumbled Friday after US President Donald Trump ended a lull in his trade war as he raised the spectre of hitting imports from the European Union with a massive 50-percent tariff.The Paris CAC 40 index and Frankfurt DAX fell by around three percent at one point, with shares in luxury and car companies taking a hit, before paring back some losses.London’s FTSE 100, which had been up earlier, fell into the red. The DAX was also higher earlier in the day as German economic growth data was revised up.US stock futures — contracts that indicate how markets will open — were also in negative territory.Trump’s new threats revived investor concerns about his trade policies after a recent deal with Britain and a tariffs truce with China.”All the optimism over trade deals wiped out in minutes –- seconds, even,” said Fawad Razaqzada, market analyst at StoneX.Trump said on his Truth Social platform that he was “recommending a straight 50% Tariff on the European Union” from June 1 as “discussions with them are going nowhere!”The US president had announced 20 percent tariffs on EU goods last month but suspended the measure to give space for negotiations.Trump, however, maintained a 10 percent levy on imports from the 27-nation bloc and nearly every other nation around the world, along with 25 percent duties on the car, steel and aluminium industries.He also threatened on Friday to hit Apple with a 25 percent tariff if its iPhones are not manufactured in the United States.His social media outburst rocked stock markets which had steadied following losses over concerns about the ballooning US debt and rising US borrowing costs.Investors were already on edge after Moody’s stripped the United States of its top-tier credit rating and the House of Representative approved Trump’s tax cut plan, which critics say would add to the country’s debt pile.The yield — or borrowing costs — on 10-year and 30-year US government bonds surged this week as investors worry about the fiscal health of the world’s biggest economy.The yields eased late Thursday.Trump’s tax package, which now goes to the Senate, had faced scepticism from fiscal hawks who fear the country is headed for bankruptcy.Independent analysts warn it would increase the deficit by as much as $4 trillion over a decade.But the White House insists it will spur growth of up to 5.2 percent, ensuring it adds nothing to the $36 trillion national debt — growth projections that are well outside the mainstream consensus.Oil prices also reversed course to fall by around one percent following Trump’s new tariff threats.- Key figures at around 1235 GMT -London – FTSE 100: DOWN 0.9 percent at 8,658.03 pointsParis – CAC 40: DOWN 2.3 percent at 7,684.35Frankfurt – DAX: DOWN 2.1 percent at 23,501.11Tokyo – Nikkei 225: UP 0.5 percent at 37,160.47 (close)Hong Kong – Hang Seng Index: UP 0.2 percent at 23,601.26 (close)Shanghai – Composite: DOWN 0.9 percent at 3,348.37 (close)New York – Dow: FLAT at 41,859.09 (close)Euro/dollar: UP at $1.1337 from $1.1281 on ThursdayPound/dollar: UP at $1.3506 from $1.3419Dollar/yen: DOWN at 142.53 yen from 143.99 yenEuro/pound: DOWN at 83.94 pence from 84.07 penceBrent North Sea Crude: DOWN 1.0 percent at $63.81 per barrelWest Texas Intermediate: DOWN 1.1 percent at $60.55 per barrel

Equities mostly rose Friday following the previous day’s US bond-fuelled sell-off with traders tracking a slight pullback in Treasury yields as Donald Trump’s signature tax-cutting budget passed a key congressional vote.Worries about the US budget deficit have returned to the fore this week after Moody’s removed its top-tier credit rating and the president pushed ahead with a budget that some suggest will expand the country’s ballooning debt.A tepid auction of 20-year Treasuries on Wednesday ramped up those concerns, dealing a blow to stocks that had just recovered from the April fireworks of Trump’s tariff blitz.Still, sentiment stabilised on Thursday, with yields pulling back after the Republican-led House narrowly passed Trump’s “One Big, Beautiful Bill Act”, which shrinks social safety net programmes to pay for a 10-year extension of his 2017 tax cuts.The package, which now goes to the Senate, had faced scepticism from fiscal hawks who fear the country is headed for bankruptcy, with independent analysts warning it would increase the deficit by as much as $4 trillion over a decade.But the White House insists it will spur growth of up to 5.2 percent, ensuring it adds nothing to the $36 trillion national debt — growth projections that are well outside the mainstream consensus.There is a feeling that “perhaps the fiscal worries have gone a bit too far”, said Pepperstone’s Chris Weston.”Many have crunched the numbers on the tax bill and see the raft of measures to not be overly stimulatory and to therefore result in a major blowout of the deficit in 2026 and 2027 and is, in fact, quite neutral in its effect.”The drop in Treasury yields — suggesting improving demand for US debt — was helped by upbeat data on the jobs market, home sales and factory activity that observers said indicated the economy remained healthy.A mixed day on Wall Street was followed by a slightly better performance in Asia.Tokyo, Hong Kong, Sydney, Mumbai, Bangkok, Manila and Jakarta rose with London, Paris and Frankfurt.But Shanghai, Singapore, Taipei and Wellington struggled.There was a little cheer from comments by Federal Reserve Governor Christopher Waller, who said interest rates could be cut in the second half of the year if Trump’s tariffs come back down to around 10 percent.”If we can get the tariffs down closer to 10 percent and then that’s all sealed, done and delivered somewhere by July, then we’re in good shape for the second half of the year,” he told Fox Business.The dollar slipped against the yen as figures showed Japanese inflation rose more than expected owing to a surge in food prices, particularly a near doubling in the cost of rice.The reading turns the focus on the Bank of Japan as it considers its next move on monetary policy after a recent spate of interest rate hikes and in light of Trump’s tariffs. Bitcoin pressed on with its latest rally, hitting a record of $111,980.33, on hopes for a cryptocurrency bill on the regulation of so-called stablecoins, digital coins with value tied to the dollar. This has led to optimism for future regulatory clarity in the sector, including for bitcoin, which is not directly linked to the dollar.- Key figures at around 0810 GMT -Tokyo – Nikkei 225: UP 0.5 percent at 37,160.47 (close)Hong Kong – Hang Seng Index: UP 0.2 percent at 23,601.26 (close)Shanghai – Composite: DOWN 0.9 percent at 3,348.37 (close)London – FTSE 100: UP 0.4 percent at 8,771.35Dollar/yen: DOWN at 143.34 yen from 143.99 yen on ThursdayEuro/dollar: UP at $1.1335 from $1.1281 Pound/dollar: UP at $1.3474 from $1.3419Euro/pound: UP at 84.11 pence from 84.07 penceWest Texas Intermediate: DOWN 1.0 percent at $60.62 per barrelBrent North Sea Crude: DOWN 0.9 percent at $63.89 per barrelNew York – Dow: FLAT at 41,859.09 (close)

Japanese inflation spiked to a two-year high in April, data showed Friday, as rice prices almost doubled, turning focus on the central bank as it mulls more interest rate hikes amid the Trump administration’s trade war.The uptick heaps pressure on Japan’s Prime Minister Shigeru Ishiba ahead of July’s elections and after a minister was forced to resign over a gaffe about the staple while officials dipped into emergency stockpiles.Core inflation excluding fresh food hit 3.5 percent last month, the internal affairs ministry said, its highest since January 2023 and well up from the 3.2 percent in March.Rice prices soared an eye-watering 98.4 percent year-on-year, slightly more than the previous month’s increase.The rocketing cost of the staple is growing into a crisis for the government, which was already struggling to win back the public after losing its parliamentary majority in an election last year.Factors behind the shortfall include poor harvests due to hot weather in 2023 and panic-buying prompted by a “megaquake” warning last year.Record numbers of tourists have also been blamed for a rise in consumption while some traders are believed to be hoarding the grain.The government began auctioning its stockpile in February, having previously tapped them during disasters. This is the first time since the stores were built in 1995 that supply chain problems are behind the move.Excluding energy and fresh food, the consumer price index rose 3.0 percent, from 2.9 percent in March, Friday’s data showed, while the overall unadjusted figure was unchanged at 3.6 percent. – Tariff threats -Underlying inflation has been above the BoJ’s target rate of two percent for around three years, and while the central bank began lifting interest rates last year, it has paused them recently as it assesses the impact of Trump’s tariffs.With Japanese officials heading to Washington for more talks on slashing the US president’s tariffs, the Bank of Japan is holding off any more increases for now.The BoJ warned at its last meeting this month that tariffs were fuelling global economic uncertainty and revised down its economic growth forecasts for the country.”Consumer price inflation will slow very gradually,” said Stefan Angrick at Moody’s Analytics.”US tariffs and tariff threats will dampen growth in Japan and globally, further weighing down demand-driven price pressures. The Bank of Japan isn’t done hiking, but it’s not moving just yet. Tariff haze will keep the central bank on hold for the time being. “We expect another rate hike in early 2026.”Adding to the problems for Ishiba, his farm minister resigned this week after comments that caused public fury.Taku Eto told a gathering over the weekend that he had “never bought rice myself because my supporters donate so much to me that I can practically sell it”.After Eto’s resignation, the prime minister said: “I apologise to Japanese people” as “it is my responsibility that I appointed him”.”That rice prices are remaining high is not a one-time phenomenon but is a structural one, I think. We have to have thorough discussions on this and they (rice prices) have to fall, of course,” he said.Marcel Thieliant at Capital Economics said that “weekly rice prices are showing signs of stabilisation so rice inflation should start to soften again before long”. Jun Takazawa at HSBC added: “The various government measures as well as an ongoing moderation in global energy and import prices are expected to bring inflation down to more sustainable levels in the second half of this year.”  

Japan’s Prime Minister Shigeru Ishiba said Friday that he had again pressed US President Donald Trump on tariffs, in a phone call ahead of fresh talks on easing the levies.Japan, a key US ally and its biggest investor, is subject to the same 10 percent baseline tariffs imposed on most nations plus steeper levies on cars, steel and aluminium.Trump also announced 24 percent “reciprocal” tariffs on Japan in early April, but later paused them along with similar measures on other countries until early July.Ishiba said he spoke with Trump for 45 minutes on Friday morning — Thursday evening in Washington — and that a “broad range of topics were discussed, including tariffs and economic security”.”I conveyed to him Japan’s position on US tariffs,” Ishiba told a news conference in Tokyo, adding that there was “no change to our calls for the removal of tariffs”. “As I’ve said before, it’s not just about tariffs but about investment. There will also be no change to our position that Japan and the US will cooperate on generating employment in the US,” he said.The comments came as Japan’s tariffs envoy, economic revitalisation minister Ryosei Akazawa, left for Washington for a third round of talks.”The series of tariff measures taken by the US are regrettable. We’ll strongly demand a review of these measures,” Akazawa told reporters at Tokyo’s Haneda airport. “But we have to reach an agreement, so it has to be win-win for both sides. We’ll listen carefully to the various proposals and ideas of the US side, and look for common ground between the two sides,” he said.Public broadcaster NHK and other Japanese media reported, citing government sources, that US Treasury Secretary Scott Bessent would not attend the talks this time. Akazawa would travel again to Washington on May 30, the reports said.Trump’s 25-percent auto tariffs are particularly painful for Tokyo, with roughly eight percent of all Japanese jobs tied to the sector.Early this month, the Trump administration also slapped a new 25 percent import tax on auto parts including engines and transmissions.At the White House in February, Ishiba had promised Trump that yearly Japanese investment would increase to $1 trillion.”Although the recent US-China and US-UK trade deals indicate that Washington is aiming to de-escalate trade tensions, Japan-US negotiations have made little headway,” said Stefan Angrick at Moody’s Analytics.”Japan’s position as the world’s largest foreign investor in the US hasn’t shielded it from tariff threats, so promising more investment is an unconvincing bargaining chip,” he added.

Southeast Asian leaders will express deep concern over US President Donald Trump’s tariff blitz when they meet at a summit Monday, warning that the unilateral move posed huge challenges to economic growth and stability in the region, according to a draft statement seen by AFP. Trump’s tariffs has roiled global markets and upended international commerce, and left leaders from the 10-member ASEAN bloc scrambling for ways to limit the fallout on their trade-dependent economies.The bloc is also caught between the trade battle between their biggest trading partners, the United States and China, on which Washington has heaped the highest tariffs.According to a draft statement expected to be issued by ASEAN leaders after they meet on Monday, they express “deep concern… over the imposition of unilateral tariff measures”.Trump’s measures “pose complex and multidimensional challenges to ASEAN’s economic growth, stability, and integration”, according to the draft of the ASEAN chairman’s statement seen by AFP.The leaders also “reaffirmed ASEAN’s collective commitment” to the global free trading system, it said.After the bloc’s meeting on Monday, the leaders are to hold a one-day summit with China and Middle Eastern oil producers.The diplomatic dance continues later in the week in neighbouring Singapore, where the Shangri-La Dialogue forum is expected to draw defence chiefs including US Defence Secretary Pete Hegseth, while French President Emmanuel Macron was due to give the keynote speech.ASEAN, with Malaysia holding its rotating chair this year, has traditionally kept a neutral stance in global power contests but that policy is under strain because of Trump’s protectionist moves, analysts say.Malaysian Prime Minister Anwar Ibrahim has called for a joint ASEAN action plan to address the growing tariff threat.Anwar said at a pre-summit briefing that, while bilateral talks between member states and the United States would continue, the bloc must present a united front.”We also have one position as ASEAN in our talks,” he said.The group, Anwar said, “had very practical policies… and what to me is of critical importance is to build that cohesion within ASEAN”.The pressure to shift ASEAN’s “friend to all” posture will likely intensify during the follow-up summit on Tuesday when Chinese Premier Li Qiang joins the bloc’s leaders and officials from oil-rich Gulf states, observers said.-‘Principled friend’ -Beijing has been courting closer ties with Southeast Asia, positioning itself as a “reliable trading partner” despite tensions with ASEAN members over rival claims in the South China Sea.Li will attend the first-time summit between ASEAN, Beijing and oil-producing nations including Bahrain, the United Arab Emirates, Qatar and Saudi Arabia.That follows Chinese President Xi Jinping urging greater cooperation between Beijing and Malaysia “to safeguard the bright prospects of our Asian family” during a Southeast Asian diplomatic charm offensive in April.Anwar said in return that Malaysia would “remain an unwavering and principled friend to China”.However, anger over US tariffs also meant that ASEAN countries “won’t automatically fall in China’s arms”, a diplomatic source, who asked not to be identified, told AFP.”It’s not a binary situation. ASEAN knows that China is just like the US in that it’s a big power which will bully them when it wants to,” the source said.And “while the general consensus is that they are angry at the US… nobody wants to offend Washington either”.James Chin, professor of Asian studies at the University of Tasmania, warned that playing to both the United States and China was a “high-risk strategy”.The danger of staying neutral is “that every single foreign policy action that you take will then be scrutinised” by each opposing power, Chin said.Others said ASEAN’s policy of neutrality remained valid.”The rest of the world should not have any problem with ASEAN’s position to ‘be friends with everyone’,” said S. Munirah Alatas, a geopolitics specialist at the University of Malaya’s Allianz Centre for Governance.However, she said the bloc still faced tough unresolved challenges, including “hostilities in Myanmar and recurring tensions in the South China Sea”.”But successfully addressing these are not premised on ASEAN’s neutral geopolitical position,” she said.

US President Donald Trump hosted a closed-door dinner for hundreds of top investors in his crypto memecoin Thursday, as sign-holding protesters outside and Democratic opponents decried the event as blatant “corruption.”The unprecedented melding of US presidential power and personal business took place at Trump’s golf club outside Washington, where Trump flew by helicopter to meet the 220 biggest purchasers of his $TRUMP memecoin.The top 25 investors, according to an event website, were to get a private session with Trump beforehand and a White House tour.Trump launched the memecoin three days before his inauguration in January, quickly increasing his net worth by billions and prompting major, first-of-their-kind ethics questions.The White House downplayed those concerns Thursday, insisting Trump was attending in his “personal time.”The president posted on his Truth Social platform ahead of the event that “the U.S.A. is DOMINATING in Crypto, Bitcoin, etc.” and pledged to “keep it that way.”Photos posted online by attendees to the dinner — press were not allowed inside — showed a lectern sporting the presidential seal, apparently for Trump to deliver remarks.Protesters gathered outside the golf course despite rainy skies, some carrying signs reading “stop crypto corruption” and “no kings.”Earlier in the day, Democratic senators held a press conference to denounce the event and call for disclosure of who would be attending.Calling the dinner “an orgy of corruption,” Senator Elizabeth Warren slammed Trump for “using the presidency of the United States to make himself richer through crypto.”Data analytics firm Inca Digital has confirmed that many transactions occurred through international exchanges unavailable in the United States, suggesting foreign buyers.- ‘Slap in the face’ -A site listing the “official winners” of $TRUMP coin holders included only usernames and digital wallet addresses, with the number-one spot held by “Sun.”Chinese-born crypto entrepreneur Justin Sun has touted a $20 million commitment to the memecoin as part of his $93 million total investment in Trump-linked crypto ventures.Sun, founder of top 10 cryptocurrency TRON, was under investigation by US authorities for market manipulation, but regulators, now controlled by Trump appointees, agreed in February to a 60-day pause to seek a settlement.”Apparently, I’m at the VIP lounge waiting for the President to come with everybody,” a tuxedo-clad Sun said in a video posted on X Thursday evening. Trump departed the golf course just over an hour after his arrival.Justin Unga of advocacy group End Citizens United described the crypto dinner as a blatant example of Trump profiting from the presidency while roiling the US economy.”Some say this is a back door to corruption,” Unga said.”I would argue it’s the front door with valet parking, and it’s got a red carpet… and a slap in the face of hard working Americans.”- Expanding empire -The dinner came as the US Senate is pushing through legislation to more clearly regulate cryptocurrencies, a long-sought request of the industry, and as Trump expands his business network into the field.Senators on Monday advanced a landmark bill known as the GENIUS Act that proposes a regulatory framework for stablecoins — a type of crypto token seen as more predictable for investors as its value is pegged to hard currencies like the dollar.Bitcoin’s price hit a new all-time high on Thursday, climbing above $111,000 before falling slightly.Trump’s newfound enthusiasm for digital currencies has expanded into multiple ventures led primarily by his eldest sons.Their growing portfolio includes investments in Binance, a major crypto exchange whose founder seeks a presidential pardon to re-enter the US market.This investment flows through World Liberty Financial, a Trump family-backed venture launched last September with significant Mideast deals. The company’s founding team includes Donald Jr. and Eric Trump alongside Zach Witkoff, son of Trump’s diplomatic adviser.President Trump has taken concrete steps to reduce regulatory barriers, including an executive order establishing a “Strategic Bitcoin Reserve” for government holdings of the leading digital currency.

Asian equities stabilised Friday following the previous day’s US bond-fuelled sell-off with traders tracking a slight pullback in Treasury yields as Donald Trump’s signature tax-cutting budget passed a key congressional vote.Worries about the US budget deficit have returned to the fore this week after Moody’s removed its top-tier credit rating and the president pushed ahead with a budget that some suggest will expand the country’s ballooning debt.A tepid auction of 20-year Treasuries on Wednesday ramped up those concerns, dealing a blow to stocks that had just recovered from the April fireworks of Trump’s tariff blitz.Still, risk appetite returned in New York on Thursday, with yields pulling back after the Republican-led House narrowly passed Trump’s “One Big, Beautiful Bill Act”, which shrinks social safety net programmes to pay for a 10-year extension of his 2017 tax cuts.The package, which now goes to the Senate, had faced scepticism from fiscal hawks who fear the country is headed for bankruptcy, with independent analysts warning it would increase the deficit by as much as $4 trillion over a decade.But the White House insists it will spur growth of up to 5.2 percent, ensuring it adds nothing to the $36 trillion national debt — growth projections that are well outside the mainstream consensus.There is a feeling that “perhaps the fiscal worries have gone a bit too far”, said Pepperstone’s Chris Weston.”Many have crunched the numbers on the tax bill and see the raft of measures to not be overly stimulatory and to therefore result in a major blowout of the deficit in 2026 and 2027 and is, in fact, quite neutral in its effect.”The drop in Treasury yields — suggesting improving demand for US debt — was helped by upbeat data on the jobs market, home sales and factory activity that observers said indicated the economy remained healthy.A mixed day on Wall Street was followed by a largely positive start in Asia.Hong Kong, Shanghai, Tokyo, Sydney, Seoul and Manila all rose, though Singapore, Jakarta, Taipei and Wellington struggled.There was a little cheer from comments by Federal Reserve governor Christopher Waller, who said interest rates could be cut in the second half of the year if Trump’s tariffs come back down to around 10 percent.”If we can get the tariffs down closer to 10 percent and then that’s all sealed, done and delivered somewhere by July, then we’re in good shape for the second half of the year,” he told Fox Business.The dollar slipped against the yen as figures showed Japanese inflation rose more than expected owing to a surge in food prices, particularly rice.The reading turns the focus on the Bank of Japan as it considers its next move on monetary policy after a recent spate of interest rate hikes and in light of Trump’s tariffs. Bitcoin pressed on with its latest rally, hitting a fresh record of $111,980.33, on hopes for a cryptocurrency bill on the regulation of so-called stablecoins, digital coins with value tied to the dollar. This has led to optimism for future regulatory clarity in the sector, including for bitcoin, which is not directly linked to the dollar.- Key figures at around 0230 GMT -Tokyo – Nikkei 225: UP 0.8 percent at 37,280.84 (break)Hong Kong – Hang Seng Index: UP 0.3 percent at 23,624.64Shanghai – Composite: UP 0.1 percent at 3,383.81Dollar/yen: DOWN at 143.88 yen from 143.99 yen on ThursdayEuro/dollar: UP at $1.1295 from $1.1281 Pound/dollar: UP at $1.3432 from $1.3419Euro/pound: UP at 84.10 pence from 84.07 penceWest Texas Intermediate: DOWN 0.6 percent at $60.86 per barrelBrent North Sea Crude: DOWN 0.5 percent at $64.12 per barrelNew York – Dow: FLAT at 41,859.09 (close)London – FTSE 100: DOWN 0.5 percent at 8,739.26 (close)