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Panama has complained to the United Nations over US President Donald Trump’s “worrying” threat to seize the Panama Canal, even as it launched an audit of the Hong Kong-linked operator of two ports on the interoceanic waterway.In a letter to UN Secretary-General Antonio Guterres, the government in Panama City referred to an article of the UN Charter precluding any member from “the threat or use of force” against the territorial integrity or political independence of another.The missive, distributed to reporters Tuesday, urges Guterres to refer the matter to the UN Security Council, without asking for a meeting to be convened.Trump, in his inaugural address Monday, repeated his complaint that China was effectively “operating” the Panama Canal through its growing presence around the waterway, which the United States handed over at the end of 1999.”We didn’t give it to China, we gave it to Panama. And we’re taking it back,” Trump said.Panama’s President Jose Raul Mulino hit back that the canal was not a gift from the United States during a panel at the World Economic Forum in Davos, Switzerland.”We reject in its entirety everything that Mr Trump has said. First because it is false and second because the Panama Canal belongs to Panama and will continue to belong to Panama,” Mulino said Wednesday.The president has previously denied that any other nation was interfering in the canal, which he said was operated on a principle of neutrality.Asked Wednesday about the spat, Beijing denied it had ever “interfered” in the canal.”China has always respected Panama’s sovereignty over the canal and recognized the canal as a permanent neutral international waterway,” foreign ministry spokeswoman Mao Ning said.- US pressure -The Panamanian comptroller’s office that oversees public entities announced “an exhaustive audit” would be launched “aimed at ensuring the efficient and transparent use of public resources” at the Panama Ports Company.The company, part of Hutchison Ports, a subsidiary of Hong Kong-based conglomerate CK Hutchison Holdings, operates the ports of Balboa and Cristobal on either end of the canal.The comptroller’s office said the aim was to determine whether the company was complying with its concession agreements, including adequate reporting of income, payments and contributions to the state.Hutchison Ports PPC said in a statement that it has “maintained and will continue to maintain a transparent and collaborative relationship” with Panamanian authorities.”We remain steadfast in our commitment to comply with all laws and regulations, fully exercising our contractual responsibilities,” the firm said.”Our financial results, audited by an independent external auditor, have been shared annually with our partner, the Panamanian State, ensuring trust and clarity in our management.”Trump has been raising pressure for weeks over the canal, through which 40 percent of US container traffic travels. He has refused to rule out using military force to reclaim it.The Panama Ports Company’s concession agreement was extended by 25 years in 2021.The United States is the canal’s main user, followed by China.Since 2000, the waterway has contributed more than $30 billion to Panama’s state coffers, including nearly $2.5 billion in the last fiscal year.burs-raz/mtp

Most Asian markets extended a global rally Wednesday as investors gave a cautious welcome to Donald Trump’s first full day in office amid hopes he will take a more cautious approach on trade than initially feared.Software investment giant SoftBank soared more than 10 percent — leading Tokyo-listed chipmakers higher — after the American president said it was included in a new $500-billion venture to build infrastructure for artificial intelligence in the United States.However, Hong Kong and Shanghai fell after the tycoon warned China could be included in a list of countries to be hit with tariffs on February 1 “based on the fact that they’re sending fentanyl to Mexico and Canada”.Traders have been bracing for Trump 2.0 since his re-election in November, with an initial rally — fuelled by hopes for market-boosting measures — giving way to worries he would resume his trade war with Beijing and also target others.There is also a concern that his plans to slash taxes, immigration and regulations will reignite inflation and crimp the Federal Reserve’s ability to cut interest rates.Tokyo’s Nikkei 225 was the standout performer Wednesday, piling on more than one percent thanks to SoftBank’s advance fuelled by news that it will be part of the Stargate venture along with cloud giant Oracle and ChatGPT-maker OpenAI.The project “will invest $500 billion, at least, in AI infrastructure in the United States” Trump said at the White House.Japanese chipmakers also rose, with Advantest up four percent, while Tokyo Electron and Lasertec gained more than one percent.Taipei also enjoyed a big jump, with chip titan and market heavyweight TSMC soaring more than one percent, while Seoul was also helped by big gains in SK hynix and LS Electric.Sydney, Mumbai, Bangkok, Jakarta and Manila also rose but Singapore and Wellington slipped.Hong Kong fell 1.6 percent after a six-day run-up as concerns China will be hit with fresh tariffs dealt a blow to confidence. Shanghai also took a hefty hit.- ‘No winners’ -There had been optimism that Beijing would avoid being targeted in an early flurry of duties by the White House after Trump said Monday he would hit Canada and Mexico. But he broadened his targets Tuesday to include China and the European Union.When asked how soon these tariffs could be enacted, he said: “Probably February 1 is the date we’re looking at.”The comments came after Chinese Vice Premier Ding Xuexiang told the World Economic Forum in Davos, Switzerland, that “protectionism leads nowhere and there are no winners in a trade war”. Foreign ministry spokeswoman Mao Ning echoed those comments Wednesday, adding that Beijing was “firmly committed to safeguarding national interests”.China saw record exports in 2024, with observers saying they were likely boosted at the end of the year by companies ramping up stockpiles ahead of Trump’s second term.”China will still need to brace for potential tariffs and that’s going to slow down exports this year,” Frederic Neumann, chief Asia economist at HSBC in Hong Kong, told Bloomberg TV. The broader gains in Asia came after another rally on Wall Street and records for London and Frankfurt.London and Frankfurt extended their gains at the open, while Paris also rose.”Investors are now cautiously optimistic, focusing on the US’s robust economic indicators, strong earnings reports, and the prospect of lower borrowing costs and increased capital inflows,” said Stephen Innes at SPI Asset Management.”This blend of factors is expected to propel US stocks higher throughout 2025, barring any unexpected trade escalations.”In sum, the delay in imposing new tariffs has been widely regarded as a significant positive for markets.”The yen eased after edging higher against the dollar recently on expectations the Bank of Japan will hike interest rates at its meeting on Friday, while the euro and pound resumed their losses.Oil prices dipped again after tumbling Tuesday in reaction to Trump’s announcement of a “national energy emergency” to ramp up drilling in the United States.- Key figures around 0815 GMT -Tokyo – Nikkei 225: UP 1.6 percent at 39,646.25 (close)Hong Kong – Hang Seng Index: DOWN 1.6 percent at 19,778.77 (close)Shanghai – Composite: DOWN 0.9 percent at 3,213.62 (close)London – FTSE 100: UP 0.1 percent at 8,557.68Euro/dollar: DOWN at $1.0412 from $1.0426 on TuesdayPound/dollar: DOWN at $1.2320 from $1.2342Dollar/yen: UP at 156.00 yen from 155.50 yenEuro/pound: UP at 84.53 pence from 84.45 penceWest Texas Intermediate: DOWN 0.7 percent at $75.34 per barrelBrent North Sea Crude: DOWN 0.5 percent at $78.89 per barrelNew York – Dow: UP 1.2 percent at 44,025.81 (close)

Most Asian markets extended a global rally Wednesday as investors gave a cautious welcome to Donald Trump’s first full day in office amid hopes he will take a more cautious approach on trade than initially feared.Software investment giant SoftBank soared more than nine percent — leading Tokyo-listed chipmakers higher — after the American president said it was included in a new $500-billion venture to build infrastructure for artificial intelligence in the United States.However, Hong Kong and Shanghai fell after the tycoon warned China could be included in a list of countries to be hit with tariffs on February 1 “based on the fact that they’re sending fentanyl to Mexico and Canada”.Traders have been bracing for Trump 2.0 since his re-election in November, with an initial rally — fuelled by hopes for market-boosting measures — giving way to worries he would resume his trade war with Beijing and also target others.There is also a concern that his plans to slash taxes, immigration and regulations will reignite inflation and crimp the Federal Reserve’s ability to cut interest rates.Tokyo’s Nikkei 225 was the standout performer Wednesday, piling on more than one percent thanks to SoftBank’s advance fuelled by news that it will be part of the Stargate venture along with cloud giant Oracle and ChatGPT-maker OpenAI.The project “will invest $500 billion, at least, in AI infrastructure in the United States” Trump said at the White House.Japanese chipmakers also rose, with Advantest up more than four percent, while Tokyo Electron and Lasertec gained more than two percent.Taipei also enjoyed a big jump, with chip titan and market heavyweight TSMC up more than two percent, while Seoul was also helped by big gains in SK hynix and LS Electric.There were also gains in Sydney, Singapore, Wellington and Manila.But Hong Kong lost more than one percent after a six-day run-up as concerns China will be hit with fresh tariffs dealt a blow to confidence. Shanghai also took a hefty hit.- ‘No winners’ -There had been optimism that Beijing would avoid being targeted in an early flurry of duties by the White House after Trump said Monday he would hit Canada and Mexico. But he broadened his targets Tuesday to include China and the European Union.When asked how soon these tariffs could be enacted, he said: “Probably February 1 is the date we’re looking at.”The comments come after Chinese Vice Premier Ding Xuexiang told the World Economic Forum in Davos, Switzerland, that “protectionism leads nowhere and there are no winners in a trade war”. China saw record exports in 2024, with observers saying they were likely boosted at the end of the year by companies ramping up stockpiles ahead of Trump’s second term.”China will still need to brace for potential tariffs and that’s going to slow down exports this year,” Frederic Neumann, chief Asia economist at HSBC in Hong Kong, told Bloomberg TV. The broader gains in Asia came after another rally on Wall Street and records for London and Frankfurt.”Investors are now cautiously optimistic, focusing on the US’s robust economic indicators, strong earnings reports, and the prospect of lower borrowing costs and increased capital inflows,” said Stephen Innes at SPI Asset Management.”This blend of factors is expected to propel US stocks higher throughout 2025, barring any unexpected trade escalations.”In sum, the delay in imposing new tariffs has been widely regarded as a significant positive for markets.”The yen eased slightly after edging higher recently on expectations the Bank of Japan will hike interest rates at its meeting on Friday.Oil prices stabilised after tumbling Tuesday in reaction to Trump’s announcement of a “national energy emergency” to ramp up drilling in the United States.- Key figures around 0230 GMT -Tokyo – Nikkei 225: UP 1.5 percent at 39,604.71 (break)Hong Kong – Hang Seng Index: DOWN 1.4 percent at 19,821.12Shanghai – Composite: DOWN 0.9 percent at 3,214.00Euro/dollar: DOWN at $1.0412 from $1.0426 on TuesdayPound/dollar: DOWN at $1.2336 from $1.2342Dollar/yen: UP at 155.67 yen from 155.50 yenEuro/pound: DOWN at 84.41 pence from 84.45 penceWest Texas Intermediate: DOWN 0.1 percent at $75.73 per barrelBrent North Sea Crude: FLAT at $79.27 per barrelNew York – Dow: UP 1.2 percent at 44,025.81 (close)London – FTSE 100: UP 0.3 percent at 8,548.29 (close)

Global stock markets climbed on Tuesday as Donald Trump wasted no time in starting his second term as US president with a raft of announcements affecting the global economy.Wall Street stocks rose as markets greeted Trump’s early executive orders and comments that raised hopes new tariffs may not be as bad as feared.Oil prices slumped however on the prospect of more drilling in the United States.The rise on Wall Street following the Martin Luther King public holiday was part of a “Trump bump,” noted Briefing.com analyst Patrick O’Hare.On becoming president, Trump signed executive orders that indicated he could resume his hardball approach to global diplomacy and trade.He also spoke about the possibility of imposing a 25-percent tariff on Canadian and Mexican goods, which sent their currencies tumbling. Canadian and Mexican stock markets were marginally higher in Tuesday trading.”What was missing in yesterday’s executive orders, however, was any declaration of a decisive tariff action against China,” said O’Hare. “Instead, President Trump said existing trade agreements should be reviewed for any recommended revisions.”Analysts at Goldman Sachs also found Trump’s initial announcements to have been “more benign than expected.”- ‘Less hawkish’ China remarks -“Trump’s comments on China were notably less hawkish than during the presidential campaign or even his more recent comments since the election,” noted economists at Goldman Sachs.That helped Chinese markets push higher, with Hong Kong gaining nearly one percent.A top Chinese official said on Tuesday that no country would emerge victorious from a trade war.”Protectionism leads nowhere and there are no winners in a trade war,” Vice Premier Ding Xuexiang said in a speech at the World Economic Forum in Davos, Switzerland.Trump also gave social media app TikTok 75 days to find a buyer for its US business, after its Chinese owners ByteDance missed a Saturday deadline to sell its US subsidiary to non-Chinese buyers or be banned.European stocks also ended the day in the green, with both Frankfurt’s DAX and London’s FTSE 100 setting record closes.Wall Street received an initial Trump bump after his November re-election, with investors excited about the prospect of tax cuts and deregulation. But as November gave way to December, the bump dissipated on rising fears that Trump’s plans to slap tariffs on key US trading partners would spark inflation and dim the prospect of further Federal Reserve interest rate cuts.Oil prices slumped on Tuesday after the Trump administration declared a “national energy emergency” to significantly expand drilling in the world’s top oil and gas producer.”Mr Trump’s full-throated yell for US producers to ‘Drill, baby, drill!’ is not new,” said David Morrison, Senior Market Analyst at Trade Nation.”And it’s perfectly logical that prices should fall at the prospect of increased supply,” he added. – Key figures around 2115 GMT -New York – Dow: UP 1.2 percent at 44,025.81 points (close)New York – S&P 500: UP 0.9 percent at 6,049.24 (close)New York – Nasdaq Composite: UP 0.6 percent at 19,756.78 (close)London – FTSE 100: UP 0.3 percent at 8,548.29 (close)Paris – CAC 40: UP 0.5 percent at 7,770.95 (close)Frankfurt – DAX: UP 0.3 percent at 21,042.00 (close)Tokyo – Nikkei 225: UP 0.3 percent at 39,027.98 (close)Hong Kong – Hang Seng Index: UP 0.9 percent at 20,106.55 (close)Shanghai – Composite: DOWN 0.1 percent at 3,242.62 (close)Euro/dollar: UP at $1.0426 from $1.0404 on MondayPound/dollar: UP at $1.2342 from $1.2302Dollar/yen: DOWN at 155.50 yen from 155.67 yenEuro/pound: DOWN at 84.45 pence from 84.56 penceWest Texas Intermediate: DOWN 2.6 percent at $75.89 per barrelBrent North Sea Crude: DOWN 1.1 percent at $79.29 per barrelburs-rl/gil/da/bgs

EU, German and Chinese leaders took turns defending global cooperation in Davos on Tuesday as the spectre of new trade wars looms following Donald Trump’s return to the White House.Trump will make an online appearance at the World Economic Forum in Switzerland this week, but he has been the elephant in the room for the executives and leaders hobnobbing at the annual conference in the Swiss Alps.In their speeches, European Commission President Ursula von der Leyen, Chinese Vice Premier Ding Xuexiang and German Chancellor Olaf Scholz offered visions of the world that are mirror opposites to those of the self-professed tariff-loving Trump.”Protectionism leads nowhere and there are no winners in a trade war,” Ding said, without mentioning Trump directly.Trump threatened Monday to impose tariffs if Beijing rejected his proposal to keep Chinese-owned app TikTok online on condition that half of it is sold off. Meanwhile, von der Leyen took a conciliatory tone, saying the EU’s “first priority will be to engage early” and “be ready to negotiate” with Trump.”We will be pragmatic but we will always stand by our principles, to protect our interests and uphold our values,” she said.The European Commission president also said that Europe “must engage constructively with China -– to find solutions in our mutual interest” despite escalating trade tensions between the two.Brussels has provoked Beijing’s ire with a raft of probes targeting state subsidies in the green tech sector, as well as imposing tariffs on Chinese electric cars.Ding warned against “erecting green barriers that could disrupt normal economic and trade cooperation”.- More trade deals -Trump has threatened to impose extra customs duties on allies including the EU, as well as on China.After his inauguration, he raised the possibility of imposing 25 percent tariffs on Canada and Mexico.Von der Leyen reiterated her commitment to free trade during her speech, pointing to recent EU deals with Switzerland, Mexico and the South American bloc Mercosur.She also said she and Indian Prime Minister Narendra Modi wanted to “upgrade” their partnership.Scholz vowed to “defend free trade” with other partners, warning that “isolation comes at the expense of prosperity”.”President Trump says ‘America First’ and he means it. There is nothing wrong with keeping your own country’s interests in mind,” Scholz said. “It’s just that cooperation and understanding with others are usually in your own interest as well.”It was probably Scholz’s last speech in Davos as chancellor ahead of German elections next month. Scholz used his speech to take another shot at Tesla and X owner Elon Musk, who has angered the chancellor with his support of Germany’s far-right AfD party.”We have freedom of speech in Europe and in Germany,” Scholz said.”Everyone can say what he wants even if he is a billionaire. What we do not accept is if this is supporting extreme right positions.”- War and climate change -Aside from tariffs, Trump has also rattled the world with his decision to withdraw from the Paris climate agreement.Von der Leyen defended the climate pact as the “best hope for all humanity” and vowed that “Europe will stay the course”.Ukraine is also keeping a very close eye on what Trump’s second term will involve.Speaking in Davos, Ukrainian President Volodymyr Zelensky questioned whether Trump was committed to NATO and European security.”Will President Trump even notice Europe? Does he see NATO as necessary? And will he respect EU institutions?” he said.Zelensky told reporters later he was working on meeting Trump but there was no date yet.”We want to finish the war and President Trump says that he also really would like to finish the war, and I believe he will help us with this,” he said.Middle East conflicts are likewise high on the agenda.Qatar’s prime minister said a lasting peace in Gaza would depend on Israel and Hamas acting in “good faith”, days into a fragile truce in the Palestinian territory mediated by the Gulf state.”If they are embarking in this in good faith, this will last and hopefully will lead to phase two, will lead to a permanent ceasefire,” Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al-Thani told the forum.

EU chief Ursula von der Leyen declared Tuesday that Europe was ready to negotiate with the United States and seek to improve ties with China as Beijing warned against damaging trade wars in the face of Donald Trump’s protectionism.Trump returned to the White House on Monday, and while he may not be physically present in the Swiss Alpine resort of Davos, he is the elephant in the room for the executives and leaders hobnobbing at the annual World Economic Forum.With Beijing and Brussels facing some of the biggest risks from the return of self-professed tariff-loving Trump, China’s Vice Premier Ding Xuexiang and European Commission President Ursula von der Leyen took to the stage first at the forum.”Protectionism leads nowhere and there are no winners in a trade war,” Ding said, without mentioning Trump directly.Trump threatened on Monday to impose tariffs if Beijing rejects his proposal to keep Chinese-owned app TikTok online on condition that half of it is sold off. China is taking a cautious approach to Trump and after the TikTok threat, Beijing said it hoped the United States would provide a fair business environment for Chinese firms.After Chinese President Xi Jinping spoke to Trump by phone on Friday, he said he hoped for a “good start” to relations with the new US administration.Meanwhile, von der Leyen took a conciliatory tone. She said the EU’s “first priority will be to engage early, discuss common interests and be ready to negotiate” with Trump.”We will be pragmatic but we will always stand by our principles, to protect our interests and uphold our values,” she said.The European Commission president also stressed that Europe “must engage constructively with China -– to find solutions in our mutual interest” despite escalating trade tensions between the two.Brussels has provoked Beijing’s ire with a raft of probes targeting state subsidies in the green tech sector, as well as slapping tariffs on Chinese electric cars.In an apparent reference to the European Union measures, Ding warned against “erecting green barriers that could disrupt normal economic and trade cooperation”.- More trade deals -On the campaign trail, Trump said he would impose extra customs duties on allies including the EU, as well as on China. After his inauguration, Trump raised the possibility of imposing 25-percent tariffs on Canada and Mexico.Von der Leyen reiterated her commitment to free trade during her speech, pointing to recent EU deals with Switzerland, the South American bloc Mercosur and Mexico.She also said she and Indian Prime Minister Narendra Modi wanted to “upgrade” their partnership.Trump announced the United States’ withdrawal from the Paris climate accord, which von de Leyen defended as the “best hope for all humanity” and vowed: “Europe will stay the course.”Ukraine is also keeping a very close eye on what Trump’s second mandate will involve.Ukrainian President Volodymyr Zelensky is expected to call on world leaders and company executives to maintain — and even ramp up — their support for his country’s war against Russia.Zelensky said on Monday he was hopeful Trump would help achieve a “just peace”.Embattled German Chancellor Olaf Scholz was also to address the Davos forum, likely his last as leader ahead of elections next month. Also speaking on Tuesday will be conservative leader Friedrich Merz, the favourite to succeed him as chancellor.- ‘Better understand’ Trump -Middle East conflicts will likewise be high on the agenda as Israeli President Isaac Herzog and Qatari Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim al-Thani speak in separate sessions during the first full day of the forum.As a fragile ceasefire holds in the Israel-Hamas war, the WEF will host a discussion on how to improve aid delivery to the Palestinian territory of Gaza and how to kickstart the reconstruction and recovery after heavy bombardment.Despite suggestions Trump’s return would overshadow the forum that began on the same day as his inauguration in Washington, WEF President Borge Brende said the US leader had brought fresh attention to the gathering.”It has increased the interest in Davos because people feel they need to come together to better understand what’s on its way,” Brende told AFP in an interview.

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

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

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

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