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On a bright September morning, employees stream through the turnstiles and vast lobby of Goldman Sachs’ headquarters in the sunlit Battery Park City neighborhood of Manhattan.More than 9,000 people work at the investment bank’s New York head office.And hundreds of them depend on the H-1B skilled worker visa, recently targeted by the Trump administration for a dramatic overhaul.A September 19 order by President Donald Trump mandates $100,000 payments from companies for every new hire through the program.Though the major impact will be on the tech sector — the largest source of H-1B hiring — financial companies like Goldman Sachs will also be forced to re-evaluate their practice of hiring from abroad.- Concentration in New YorkIn the first two quarters of 2025, Goldman Sachs was the biggest recipient of H-1B visas in New York City. The Big Apple was, in turn, the single location with the most H-1B recipients in all of the United States.Aggregated at the state level, California and Texas both attract more H-1B visa holders than the state of New York; but there is no one city or town in either of these states that boasts a higher number of H-1B holders than the east coast metropolis.This concentration of H-1B visas in New York is driven by hiring at Wall Street’s financial giants.Data from US Citizenship and Immigration Services analyzed by AFP shows that four of the top five H-1B visa recipients in New York City are financial services companies: the investment banks Goldman Sachs, Morgan Stanley, and Citigroup, and financial data company Bloomberg. The other company in the top five is the consulting and professional services firm McKinsey.Further down the list, and outside of the finance sector, universities such as Columbia and NYU and medical institutions like the Memorial Sloan Kettering Cancer Center and Weil Cornell Medical College also brought a number of H-1B hires to the city.- Negative impactsAccording to 2025 data, H-1B positions filled by the banks skewed towards the more technical side of the finance industry, with many visa holders working in software engineering, quantitative analytics, and data science.Goldman Sachs did not respond to emailed questions asking how a $100,000 price tag would impact their ability to hire for such roles in the future. Contacted by AFP with similar questions, Bloomberg and Citigroup declined to comment.In general, experts believe the fee will lead to a large reduction in applications for the visa scheme, which could have further negative impacts on the economy.”A visa fee of this scale is likely to drastically curtail the use of H-1B visas,” Ethan G. Lewis, Professor of Economics at Dartmouth College, told AFP.”It will lead to reduced hires of US workers and slower productivity growth, and, longer term, discourage people [from other countries] from going to college and beyond in the US, because many tend to rely on H-1B visas for their first job out of studies.”In the tech industry the announcement of the visa fee has caused consternation, with many entrepreneurs — among them Trump’s ally Elon Musk — warning that the US will not be able to fill highly skilled roles with only homegrown talent.Others have speculated that, rather than being offered to American workers, some jobs will simply be outsourced overseas.

Wall Street’s bull run showed signs of fatigue Tuesday as major indices retreated from records on drops by Amazon, Nvidia and other tech giants.The pullback followed comments from Federal Reserve Chair Jerome Powell warning that cutting interest rates “too aggressively” could stoke inflation, while the central bank boss also emphasized the need to try to prevent the labor market from softening “unnecessarily.”All three major US indices have finished at records the last three days.”Today’s pullback after fresh record highs could reflect market participants giving credence to valuation concerns amid a historic run, particularly in the mega-cap space, though investors have repeatedly shown a willingness to buy dips throughout this rally,” said Briefing.com.The tech-rich Nasdaq led US indices lower, dropping one percent. Nvidia, which rallied on Monday after announcing a $100 billion investment in OpenAI to build infrastructure for next-generation artificial intelligence, retreated on Tuesday, losing 2.8 percent. While “leading tech companies are investing hundreds of billions in generative AI… some investors continue to question if this is money well spent,” said David Morrison, senior market analyst at Trade Nation.Earlier, London ended the day flat and Paris and Frankfurt added barely half of one percent as investors digested purchasing managers’ index (PMI) data — a closely watched gauge of economic health. The index showed eurozone business activity hit a 16-month high in September, partly driven by solid growth in Germany, while France weighed on performance.Britain’s reading came in below expectations, suggesting the economy is losing momentum, analysts noted, as inflation fears linger.With trade subdued by a holiday in Japan and an approaching typhoon in Hong Kong, Asian markets mostly drifted as Hong Kong and Shanghai both closed lower. Taipei jumped more than one percent, with chip titan TSMC soaring over three percent as it tracked US counterpart Nvidia, which announced a $100-billion investment in OpenAI for next-generation artificial intelligence.Oil prices rose after President Donald Trump called on Europe to completely halt oil imports from the country over the Ukraine war. The US president also threatened sanctions on Russia in a speech that tilted more heavily in support of Ukraine than earlier Trump stances.- Key figures at around 2050 GMT -New York – Dow: DOWN 0.2 percent at 46,292.78 (close)New York – S&P 500: DOWN 0.6 percent at 6,656.92 (close)New York – Nasdaq Composite: DOWN 1.0 percent at 22,573.47 (close)London – FTSE 100: FLAT at 9,223.32 (close)Paris – CAC 40: UP 0.5 percent at 7,872.02 (close)Frankfurt – DAX: UP 0.4 percent at 23,611.33 (close)Hong Kong – Hang Seng Index: DOWN 0.7 percent at 26,159.12 (close)Shanghai – Composite: DOWN 0.2 percent at 3,821.83 (close)Tokyo – Nikkei 225: Closed for a holidayEuro/dollar: DOWN at $1.1816 from $1.1803 on MondayPound/dollar: UP at $1.3524 from $1.3514Dollar/yen: DOWN at 147.66 yen from 147.72 yenEuro/pound: UP at 87.37 pence from 87.34 penceWest Texas Intermediate: UP 1.8 percent at $63.41 per barrelBrent North Sea Crude: UP 1.6 percent at $67.63 per barrel

Stock markets marked time Tuesday as traders monitored key economic indicators, with US inflation data due later this week that could influence Federal Reserve policy.On Wall Street, the Dow stood just in positive territory more than two hours into the session but the tech-heavy Nasdaq was off 0.3 percent and the broader S&P 500 was also marginally into the red.London ended the day flat and Paris and Frankfurt added barely half of one percent as investors digested purchasing managers’ index (PMI) data — a closely watched gauge of economic health. The index showed eurozone business activity hit a 16-month high in September, partly driven by solid growth in Germany, while France weighed on performance.Britain’s reading came in below expectations, suggesting the economy is losing momentum, analysts noted, as inflation fears linger.Gold pushed to another all-time high and the dollar steadied. Oil prices rose around two percent after the OECD on Tuesday raised its forecast for world economic growth this year.Among shares on the move, while a clutch of major tech firms took a breather, consumer health company Kenvue rose around four percent, bouncing back from a record low in the previous session, after medical experts including the World Health Organization refuted US President Donald Trump’s linking of the firm’s popular pain reliever Tylenol to autism. In focus remains Friday’s report on US personal consumption expenditures, the Federal Reserve’s preferred measure of inflation. Markets expect two further interest rate cuts by the Fed by the end of the year as officials aim to shore up the stuttering labour market despite elevated inflation.With US indices looking to build on a start to the week which saw them finish at fresh all-time highs, David Morrison, senior market analyst at Trade Nation, said that while “leading tech companies are investing hundreds of billions in generative AI… some investors continue to question if this is money well spent”.Yet, “despite this, equities continue to grind higher with little indication that there’s anything on the horizon which could derail the current rally,” he added.With trade subdued by a holiday in Japan and an approaching typhoon in Hong Kong, Asian markets mostly drifted as Hong Kong and Shanghai both closed lower. Taipei jumped more than one percent, with chip titan TSMC soaring over three percent as it tracked US counterpart Nvidia, which announced a $100-billion investment in OpenAI for next-generation artificial intelligence.A rise in tech giants helped lift major Wall Street indices to fresh highs on Monday.However, there are growing worries that the surge may have gone too far and markets are due a pullback with eyes on a possible government shutdown in Washington.Elsewhere, investors will keep an eye on an expected meeting between US President Donald Trump and his Argentine counterpart Javier Milei at the UN General Assembly after the US Treasury pledged to “do what is needed” to support Argentina’s economy, which has faced a plunge in the peso, stocks and bonds. – Key figures at around 1550 GMT -New York – Dow: UP 0.2 percent at 46,461.99 pointsNew York – S&P 500: DOWN 0.1 percent at 6,684.53New York – Nasdaq Composite: DOWN 0.3 percent at 22,723.02 London – FTSE 100: FLAT at 9,223.32 (close)Paris – CAC 40: UP 0.5 percent at 7,872.02 (close)Frankfurt – DAX: UP 0.4 percent at 23,611.33 (close)Hong Kong – Hang Seng Index: DOWN 0.7 percent at 26,159.12 (close)Shanghai – Composite: DOWN 0.2 percent at 3,821.83 (close)Tokyo – Nikkei 225: Closed for a holidayEuro/dollar: DOWN at $1.1791 from $1.1799 on MondayPound/dollar: DOWN at $1.3514 from $1.3515Dollar/yen: UP at 147.88 yen from 147.87 yenEuro/pound: DOWN at 87.25 pence from 87.30 penceWest Texas Intermediate: UP 2.4 percent at $63.76 per barrelBrent North Sea Crude: UP 2.0 percent at $67.91 per barrel

All eyes are on China this week, as the world’s biggest polluter readies a new emissions-cutting plan — reinforcing its role as a steadfast defender of global climate diplomacy while Europe stalls and the United States doubles down on fossil fuels.United Nations Secretary-General Antonio Guterres has convened a mini climate summit on Wednesday during a week of high-level talks, where Beijing is expected to unveil its updated “Nationally Determined Contributions.”These need to be in place before the main climate gathering of the year, the COP30 summit in Belem, Brazil, in November. Although China accounts for nearly 30 percent of annual global greenhouse gas emissions, it has increasingly positioned itself as a driving force in international climate talks and as a green technology superpower. It has strongly backed the UN process under the Paris Agreement despite the second departure of its principal geopolitical rival, the United States.”China is a very stable partner,” Brazil’s Ana Toni, CEO of COP30, told AFP. “We are expecting China to continue on the right path. Let us hope that the other players will do the same.”Chinese Premier Li Qiang is poised to be the first speaker at the mini summit and could unveil the new plan then, or it may come before.What China chooses as its 2035 emissions reduction target could make or break the Paris goal of limiting warming to “well below” 2C since preindustrial times and preferably 1.5C — a target Guterres told AFP last week could be at risk of “collapsing.” Beijing has said its 2035 plan will, for the first time, cover all economic sectors and greenhouse gases.- Under promise, over deliver -Under its last plan, announced in 2021, China said it would aim to peak carbon dioxide emissions before 2030 and achieve net zero by 2060 — deemed highly insufficient by groups that track such targets.But observers say it is more important to watch what China does than what it says.”The China approach is ‘We’ll set a modest target then outperform it,'” Helen Clarkson, CEO of the international nonprofit Climate Group that runs Climate Week in New York City every September told AFP. By contrast, the European Union failed to adopt a unified plan ahead of the UN General Assembly, opting for a non-binding statement of intent — although the 27-nation bloc has decarbonized faster than many other developed nations.And the United States under President Donald Trump has recast itself as a zealous promoter of fossil fuels. During his first term, the US withdrew from the Paris accord. In his second term, Washington has not simply abandoned climate action but has gone on the offensive for oil and gas interests — threatening to punish countries that participate in the International Maritime Organization’s carbon pricing system for shipping and embedding the sale of US liquefied natural gas (LNG) in trade deals, for example.”Countries are confronted with competing sales pitches, as China tries to sell them solar panels and the US pushes LNG,” Manish Bapna, president of the nonprofit Natural Resources Defense Council, told AFP.”For China, it’s a long-term economic plan, and of course, they can do that because of the structure of their politics,” said Clarkson. “What we haven’t really figured out is how to do these long-term climate plans on short-term democratic cycles.”

The world economy will grow more than previously forecast this year after absorbing the shock of US President Donald Trump’s tariffs, but their full impact remains uncertain, the OECD said Tuesday.In June, the Paris-based organisation had cut its forecast from 3.1 percent to 2.9 percent, warning at the time that Trump’s tariffs would stifle the world economy.But in an updated outlook on Tuesday, it raised the projection to 3.2 percent, saying the economy “proved more resilient than anticipated” in the first half of 2025.”The impact of tariffs is taking longer to reach the economy,” OECD chief economist Alvaro Pereira told AFP in an interview.The OECD report said “front-loading” — companies rushing to import goods ahead of Trump’s tariffs — “was an important source of support”.The economy also got a boost from strong AI-related investments in the United States and government spending in China.The updated figure is still a slight slowdown from 3.3 percent in 2024.”The full effects of tariff increases have yet to be felt — with many changes being phased in over time and companies initially absorbing some tariff increases through (profit) margins,” the Organisation for Economic Co-operation and Development said.”But (they) are becoming increasingly visible in spending choices, labour markets and consumer prices,” the report said.- ‘Significant risks remain’ -World growth is due to slow to 2.9 percent in 2026 “as front-loading ceases and higher tariff rates and still-high policy uncertainty dampen investment and trade”, the OECD said.Trump imposed a baseline 10 percent tariff on imports from around the world in April.He later hit dozens of countries with even higher duties, but the US leader also left the door open for negotiations, striking deals with Britain, Japan and the European Union, among others.The United States has yet to find a compromise with China, though the world’s two biggest economies have temporarily de-escalated their tit-for-tat tariffs while they negotiate.The overall effective US tariff rate rose to an estimated 19.5 percent in August, the highest level since 1933, the OECD said.”Significant risks to the economic outlook remain,” the OECD said.”Amid ongoing policy uncertainty, a key concern is that bilateral tariff rates could be raised further on merchandise imports,” it said.The OECD also warned that inflation could rise as food and energy prices climb, and companies begin to pass the cost of higher tariffs to consumers.”On the upside, reductions in trade restrictions or faster development and adoption of artificial intelligence technologies could strengthen growth prospects,” it said.- Growth due to slow -The OECD also upgraded the growth outlook of the United States for 2025 from 1.6 percent to 1.8 percent but that is much slower than 2.8 percent last year.US growth is expected to slow even further to 1.5 percent next year due to higher tariffs and elevated “policy uncertainty”.The OECD also pointed to the impact of Trump’s immigration crackdown and cuts in the federal workforce.The report was written before the White House raised the H-1B visa fee for high-skilled workers to $100,000, which has rattled the tech industry.”We do think that continuing to attract high-skilled individuals from the United States or from around the world is a key strength of the US economy,” said Pereira, noting that there is a labour shortage in the tech sector.The OECD raised the growth outlook of other major economies: to 4.9 percent in China, 1.2 percent in the eurozone and 1.1 percent in Japan.But it flagged a drop in industrial production in recent months in several countries, including Brazil, Germany and South Korea, and moderating consumption in the United States, China and the eurozone.

Stock markets diverged Tuesday as traders monitored key economic indicators, with US inflation data due later this week that could influence Federal Reserve policy.Paris, Frankfurt and London equities rose as investors digested purchasing managers’ index (PMI) data — a closely watched gauge of economic health. The index showed eurozone business activity hit a 16-month high in September, partly driven by solid growth in Germany, while France weighed on performance.Britain’s reading came in below expectations, suggesting the economy is losing momentum, analysts noted.Gold pushed to another all-time high and the dollar steadied. Oil prices rose around one percent after the OECD on Tuesday raised its forecast for world economic growth this year. In focus is Friday’s report on US personal consumption expenditures, the Federal Reserve’s preferred measure of inflation. Markets expect two further interest rate cuts by the Fed by the end of the year as officials aim to shore up the stuttering labour market despite elevated inflation. With trade subdued by a holiday in Japan and an approaching typhoon in Hong Kong, Asian markets mostly drifted.Hong Kong and Shanghai both closed lower. Taipei jumped more than one percent, with chip titan TSMC soaring over three percent as it tracked US counterpart Nvidia, which announced a $100 billion investment in OpenAI for next-generation artificial intelligence.A rise in tech giants helped lift major Wall Street indices to fresh highs on Monday.However, there are growing worries that the surge may have gone too far and markets are due a pullback with eyes on a possible government shutdown in Washington.”Equity indices are soaring even as the real (US) economy shows signs of strain,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown.”For now, optimism around AI-driven growth and record levels of investment is keeping momentum alive, but the balancing act is precarious,” he added.Elsewhere, investors will keep an eye on an expected meeting between US President Donald Trump and his Argentine counterpart Javier Milei at the UN General Assembly. The US Treasury said Monday it stood ready to “do what is needed” to support Argentina’s economy, which has faced a plunge in the peso, stocks and bonds. Financial markets have been rattled by recent provincial election defeats for Milei’s party. – Key figures at around 1040 GMT -London – FTSE 100: UP 0.1 percent at 9,231.35 pointsParis – CAC 40: UP 0.6 percent at 7,879.24 Frankfurt – DAX: UP 0.2 percent at 23,575.63Hong Kong – Hang Seng Index: DOWN 0.7 percent at 26,159.12 (close)Shanghai – Composite: DOWN 0.2 percent at 3,821.83 (close)Tokyo – Nikkei 225: Closed for a holidayNew York – Dow: UP 0.1 percent at 46,381.54 (close)Euro/dollar: DOWN at $1.1792 from $1.1799 on MondayPound/dollar: DOWN at $1.3501 from $1.3515Dollar/yen: DOWN at 147.76 yen from 147.87 yenEuro/pound: UP at 87.34 pence from 87.30 penceWest Texas Intermediate: UP 1.2 percent at $63.03 per barrelBrent North Sea Crude: UP 1.1 percent at $67.27 per barrel

Indonesia and the European Union finalised negotiations on a trade agreement Tuesday after nearly a decade of talks, a senior minister said.The Indonesia-European Union Comprehensive Economic Partnership Agreement (CEPA) is the third deal Brussels has signed with Southeast Asian countries, after Singapore and Vietnam.The pact was signed by EU Trade Commissioner Maros Sefcovic and Indonesian Minister of Economic Affairs Airlangga Hartarto in Bali and will open investment in strategic sectors such as electric vehicles, electronics, and pharmaceuticals.”By finalising this agreement, the EU and Indonesia are sending a powerful message to the world that we stand united in our commitment to open rules-based and mutually beneficial international trade,” Sefcovic said after the signing.”In all, EU exporters will save some 600 million euros ($708 million) a year in duties paid on their goods entering the Indonesian market, and European products will be more affordable and available to Indonesian consumers,” EU President Ursula von der Leyen said in a statement.Indonesia has been in talks with the EU since 2016, but negotiations for a trade deal initially saw little progress.Issues such as palm oil and deforestation posed stumbling blocks, but US President Donald Trump’s sweeping tariff policy “created the urgency” to expedite an agreement, said Deni Friawan, researcher at the Centre for Strategic and International Studies.The trade deal also included a protocol on palm oil, the EU said in a statement, without providing details.”This is a ten-year journey that has resulted in a milestone that reflects our commitment and the commitment of stakeholders to an open, fair, and sustainable economic assistance,” Airlangga told a news conference.The agreement is expected to be implemented by 2027, Airlangga added.Around 80 percent of Indonesian exports to the EU will be tariff-free after the deal comes into force, Airlangga said in June.- Access opens –It is expected to benefit the country’s top shipments to the bloc including palm oil, footwear, textiles and fisheries, he added.The EU is Indonesia’s fifth-largest trading partner with bilateral trade reaching $30.1 billion last year.The agreement would further open up EU access to the Indonesian market of around 280 million people, Deni said.Ties had been frayed by issues including a proposed import ban by Brussels on products linked to deforestation that has angered Indonesia, a major palm oil exporter.Under the EU deforestation regulation, exports of a vast range of goods — including soy, timber, palm oil, cattle, printing paper and rubber — are prohibited if produced on land deforested after December 2020.The EU on Tuesday proposed postponing the regulation’s implementation by another year after a backlash.However, activists are concerned the trade agreement will lead to more deforestation driven by increased demand for Indonesian palm oil.”The remaining natural forests in palm oil concessions will potentially be cleared in the near future (and) converted into plantations,” said Syahrul Fitra of Greenpeace Indonesia.

A Singapore shipping company told AFP on Tuesday it will refuse to pay Sri Lankan court-ordered damages of US$1 billion for causing that country’s worst case of environmental pollution.In an exclusive interview, X-Press Feeders chief executive Shmuel Yoskovitz said he believed paying would have wide-ranging implications on global shipping and “set a dangerous precedent”.The company operated the MV X-Press Pearl that sank off Colombo Port in June 2021 after a fire — believed caused by a nitric acid leak — that raged for nearly two weeks.Its cargo included 81 containers of hazardous goods, including acids and lead ingots, and hundreds of tonnes of plastic pellets.The ship was refused permission by ports in Qatar and India to offload the leaking nitric acid before it arrived in Sri Lankan waters. Tonnes of microplastic granules from the ship inundated an 80-kilometre (50-mile) stretch of beach along Sri Lanka’s western coast. Fishing was prohibited for months.Sri Lanka’s Supreme Court in July ordered the company to pay Colombo an “initial” US$1 billion in damages within a year, with the first tranche of US$250 million to be paid by Tuesday.It also ordered the company “to make such other and further payments” in the future as the court may direct.- ‘Hanging guillotine’ -Yoskovitz rejected the open-ended nature of the penalty. “We are not paying because the whole base of maritime trade is based on the limitation of liability. This judgment undermines this limitation of liability,” he told AFP.”Any payment towards the judgment could set a dangerous precedent for how maritime incidents will be resolved in the future,” he said.Sri Lanka’s government said it would ask its chief prosecutor what action it could take.”We will be guided by the advice of the attorney general on what further steps to take,” government spokesman and media minister Nalinda Jayatissa told reporters in Colombo.The United Nations office in Colombo noted that the “polluter pays” principle was enshrined in global agreements, including the UN Convention on the Law of the Sea.”The Supreme Court’s ruling is a vital step toward justice and accountability,” the UN in Sri Lanka said on X.Yoskovitz said the absence of limitations could lead to higher insurance premiums, which would be ultimately passed on to consumers.The chief executive again apologised for the incident, saying the company recognised the disaster and was trying to make amends. He said X-Press Feeders had already spent $170 million to remove the wreck, clean up the seabed and beaches, and compensate affected fishermen.”We are not trying to hide… We are willing to pay more, but it has to be under certain marine conventions and an amount that is full and final and then it can be settled, and we can move on,” he said.”But to live under this hanging guillotine — it is simply impossible to operate like this.”- Long-term effects -In Colombo, Sri Lanka’s Supreme Court has scheduled a hearing on Thursday about the implementation of its decision.One of the petitioners who sought compensation for the pollution has called for further research to determine the full extent of the damage to the island’s marine ecosystems.”If you visit the coastlines today, there is nothing visible in terms of plastic pollution. A major clean-up took place soon after the X-Press Pearl incident, but the effects of the pollution will be felt for a long time,” said Hemantha Withanage from the Centre for Environmental Justice.It remains unclear how Sri Lanka’s Supreme Court could enforce its decision. However, in its 361-page decision in July, the court ordered the police and the state prosecutor to initiate criminal proceedings for non-compliance if the parties were present in Sri Lanka.Yoskovitz expressed concern over the ship’s Russian captain, Vitaly Tyutkalo, who has been banned from leaving Sri Lanka for more than four years, as well as the company’s third-party agents there. The firm had offered to pay a fine for the skipper’s release, but this was refused, according to Yoskovitz. X-Press Feeders obtained an order from London’s Admiralty Court in July 2023, limiting its liability to a maximum of 19 million pounds (US$25 million), but Sri Lanka has challenged that.The Sri Lankan government also filed a lawsuit against the ship’s owners in the Singapore International Commercial Court. But that has been stayed pending the result of the case in London, with a pre-trial hearing expected in May 2026. 

The world economy will grow more than previously forecast this year after absorbing the shock of US President Donald Trump’s tariffs, but their full impact remains uncertain, the OECD said Tuesday.In June, the Paris-based organisation had cut its forecast from 3.1 percent to 2.9 percent, warning at the time that Trump’s tariffs would stifle the world economy.But in an updated outlook on Tuesday, it raised the projection to 3.2 percent, saying the economy “proved more resilient than anticipated” in the first half of 2025.The OECD said “front-loading” — companies rushing to import goods ahead of Trump’s tariffs — “was an important source of support”.The economy also got a boost from strong AI-related investments in the United States and government spending in China.The updated figure is still a slight slowdown from 3.3 percent in 2024.”The full effects of tariff increases have yet to be felt — with many changes being phased in over time and companies initially absorbing some tariff increases through (profit) margins,” the Organisation for Economic Co-operation and Development said.”But (they) are becoming increasingly visible in spending choices, labour markets and consumer prices,” the report.- ‘Significant risks remain’ -World growth is due to slow to 2.9 percent in 2026 “as front-loading ceases and higher tariff rates and still-high policy uncertainty dampen investment and trade”, the OECD said.Trump imposed a baseline 10 percent tariff on imports from around the world in April.He later hit dozens of countries with even higher duties, but the US leader also left the door open for negotiations, striking deals with Britain, Japan and the European Union, among others.The United States has yet to find a compromise with China, though the world’s two biggest economies have temporarily de-escalated their tit-for-tat tariffs while they negotiate.The overall effective US tariff rate rose to an estimated 19.5 percent in August, the highest level since 1933, the OECD said.”Significant risks to the economic outlook remain,” the OECD said.”Amid ongoing policy uncertainty, a key concern is that bilateral tariff rates could be raised further on merchandise imports,” it said.The OECD also warned that inflation could rise as food prices increase, geopolitical tensions push energy prices higher and companies begin to pass the cost of higher tariffs to consumers.Other concerns include high levels of public debt as well as risks to financial markets.”On the upside, reductions in trade restrictions or faster development and adoption of artificial intelligence technologies could strengthen growth prospects,” it said.- Growth due to slow -The OECD also upgraded the growth outlook of the United States for 2025 from 1.6 percent to 1.8 percent.But it warned that growth in the world’s biggest economy is expected to slow as “higher effective tariff rates further come into effect and policy uncertainty remains elevated.”A drop in net immigration and cuts in the federal workforce “are also anticipated to soften economic growth”.The OECD raised the growth outlook of other major economies: to 4.9 percent in China, 1.2 percent in the eurozone and 1.1 percent in Japan.But the OECD flagged a drop in industrial production in recent months in several countries, including Brazil, Germany and South Korea, and moderating consumption in the United States, China and the eurozone.

Asian markets struggled Tuesday to track another record day on Wall Street, with traders now awaiting the release of US inflation data that could dictate Federal Reserve policy in coming weeks.The tepid performance came after a hot couple of weeks on trading floors fuelled by optimism over an easing of US monetary policy.Last week’s interest rate cut came with Fed forecasts for two more before the end of the year as officials aim to shore up the stuttering labour market despite elevated inflation.That puts in focus Friday’s report on personal consumption expenditures, the Fed’s preferred measure of inflation.With trade subdued by a holiday in Japan and an approaching typhoon in Hong Kong, Asian markets drifted.Hong Kong and Shanghai slipped with Manila, Bangkok and Wellington, while Sydney, Seoul, Singapore and Jakarta rose.Paris and Frankfurt started with gains as data showed eurozone business activity growth hit a 16-month high in September.Taipei jumped more than one percent with chip titan TSMC soaring more than three percent as it tracked US counterpart Nvidia, which announced a $100 billion investment in OpenAI for next-generation artificial intelligence.However, there are growing worries that the surge may have gone too far and markets are due a pull-back with eyes on a possible government shutdown in Washington.Senators failed to pass a stopgap funding bill Friday after the Republican-controlled House of Representatives narrowly passed it.The bill was shot down by Democrats and with both chambers scheduled to be in recess next week, time is running out to keep the government running after the end of the fiscal year September 30.A shutdown would see non-essential operations start to grind to a halt and hundreds of thousands of civil servants temporarily left without pay.”There are rickety bridges ahead. The US government shutdown drama remains unresolved—another potential rockslide on the tracks,” said SPI Asset Management’s Stephen Innes. “The Senate’s failure to bridge the gap between competing proposals leaves traders watching the Sept. 30 deadline with one eye, even as the other scans record-high tickers. “Markets rarely derail on the first warning, but complacency can turn into chaos when the train rounds a blind corner.”- Key figures at around 0810 GMT -Hong Kong – Hang Seng Index: DOWN 0.7 percent at 26,159.12 (close)Shanghai – Composite: DOWN 0.2 percent at 3,821.83 (close)London – FTSE 100: UP 0.3 percent at 9,249.95Tokyo – Nikkei 225: Closed for a holidayEuro/dollar: DOWN at $1.1790 from $1.1799 on MondayPound/dollar: UP at $1.3518 from $1.3515Dollar/yen: DOWN at 147.74 yen from 147.87 yenEuro/pound: DOWN at 87.21 pence from 87.30 penceWest Texas Intermediate: DOWN 0.3 percent at $62.12  per barrelBrent North Sea Crude: DOWN 0.3 percent at $66.39 per barrelNew York – Dow: UP 0.1 percent at 46,381.54 (close)