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Asian and European equities were mixed Wednesday as investors fret over President Donald Trump’s ever-changing trade policies amid increasing concern that his tariffs could send the US economy into recession.Global markets have endured severe volatility this month as the president looks to ramp up pressure on global partners by imposing or threatening hefty duties on their goods, citing huge trade imbalances.In the latest move, sweeping 25 percent levies on all US aluminium and steel imports came into effect at midnight in Washington (0400 GMT Wednesday), hitting numerous nations from Brazil to South Korea, as well as the European Union.On Tuesday, Trump threatened to double those on Canada after the province of Ontario imposed an electricity surcharge on three US states. The president called that off after Ontario halted the charge.The on-off nature of the trade policies has fuelled uncertainty in markets, and has sent the VIX “fear index” of volatility to its highest level since August.Traders appeared largely unmoved by Trump’s attempt to soothe worries over a recession after he warned at the weekend of “a period of transition” and refused to rule out a downturn.On Tuesday, he said at the White House: “I don’t see it at all. I think this country’s going to boom”, adding that markets “are going to go up and they’re going to go down. But you know what, we have to rebuild our country”.But Nicole Inui at HSBC wrote in a note: “The back and forth on tariff announcements is playing havoc with consumer and business confidence: policy uncertainty is at a record high, consumer confidence dropped sharply and small business optimism has pared back.”Consensus GDP forecasts were revised lower for the first time in eight months and market chatter about recession is creeping higher.”After another selloff in New York that saw the Nasdaq extend Monday’s four percent dive, Asian traders were also in a dour mood, though Europe was a little brighter.Tokyo edged up with Singapore, Seoul, Jakarta and Taipei.But Hong Kong, Shanghai, Wellington, Mumbai, Bangkok and Manila were in the red, with Sydney down more than one percent, on concerns about the impact of Trump’s latest tariffs on Australia’s economy.London, Paris and Frankfurt opened on the front foot.Also in focus Wednesday is the release of key US consumer inflation data, which the Federal Reserve will keep a close eye on as it tries to determine monetary policy in light of the latest moves by Trump.There is a fear that the tariffs, and plans to slash taxes, regulation and immigration will fan inflation again, forcing the bank to hold borrowing costs for longer or even hike them.Meanwhile, analysts said high uncertainty in US markets at the moment was making other regions more attractive as investors look for more stability.”For years, the US has been the undisputed leader of global markets, fuelled by aggressive fiscal spending, tech dominance, and a strong consumer,” said Charu Chanana, chief investment strategist at Saxo markets.”But cracks are starting to show. Investors are increasingly looking overseas as concerns mount over US stock valuations, monetary policy, and economic uncertainty.”- Key figures around 0815 GMT -Tokyo – Nikkei 225: UP 0.1 percent at 36,819.09 (close)Hong Kong – Hang Seng Index: DOWN 0.8 percent at 23,600.31 (close)Shanghai – Composite: DOWN 0.2 percent at 3,371.92 (close)London – FTSE 100: UP 0.3 percent at 8,518.45Euro/dollar: DOWN at $1.0898 from $1.0915 on TuesdayPound/dollar: DOWN at $1.2926 from $1.2954Dollar/yen: UP at 148.62 yen from 147.70 yenEuro/pound: UP at 84.33 pence from 84.26 penceWest Texas Intermediate: UP 0.4 percent at $66.50 per barrelBrent North Sea Crude: UP 0.4 percent at $69.82 per barrelNew York – Dow: DOWN 1.1 percent at 41,433.48 points (close)

The United States broadened its slate of tariffs Wednesday as sweeping levies on steel and aluminum imports took effect “with no exceptions or exemptions” as promised by the White House — despite countries’ efforts to avert them.President Donald Trump’s 25 percent duties on both metals will likely add to the cost of producing various goods from home appliances to automobiles and cans used for drinks, threatening to raise consumer prices down the road.”It wouldn’t surprise me to see the tariffs pretty quickly show up in prices,” Cato Institute research fellow Clark Packard told AFP.He added that auto manufacturing and construction — spanning both residential and commercial buildings — are among the biggest users of steel in the country.The European Commission said Wednesday it would impose “a series of countermeasures” from April 1 in response to the “unjustified trade restrictions” from the United States.”We deeply regret this measure,” European Commission chief Ursula von der Leyen said in a statement, adding: “As the US are applying tariffs worth $28 billion, we are responding with countermeasures worth” the equivalent in euros.Trump has imposed steep tariffs on major US trading partners Canada, Mexico and China since returning to office, allowing only a partial rollback for his country’s neighbors while vowing fresh levies from April 2.The latest duties will again impact Canada heavily, with the country supplying about half of US aluminum imports and 20 percent of its steel imports, according to a recent note by EY chief economist Gregory Daco.Besides Canada, Brazil and Mexico are also key US suppliers of steel, while the United Arab Emirates and South Korea are among the major providers of aluminum.Wednesday’s levies stack atop earlier ones. This means some Canada and Mexico steel and aluminum products likely face a 50 percent tariff rate unless they are compliant with the US-Mexico-Canada Agreement (USMCA).Uncertainty over Trump’s trade plans and worries that they could tip the world’s biggest economy into a recession have roiled financial markets, with Wall Street indexes tumbling for a second straight day on Tuesday.But Trump has played down fears over his handling of the economy, saying Tuesday he does not see a downturn coming while dismissing losses on Wall Street.- ‘Bumpy’ transition -Trump’s trade decisions have come with volatility, with the president threatening to double the tariff rate on Canadian steel and aluminum to 50 percent less than a day before the levies were due to kick in.Canada’s Ontario province had decided to impose an electricity surcharge on three American states in retaliation for earlier US levies, prompting Trump’s furious response.Washington and Ottawa swapped angry tariff warnings throughout the day as trade tensions surged, and Trump doubled down on provocative plans to annex his country’s northern neighbor.But Ontario halted the surcharge after talks with Washington.White House spokesman Kush Desai said Trump “used the leverage of the American economy” in order to “deliver a win for the American people.”Ontario Premier Doug Ford, US Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer are set to meet in Washington on Thursday “to discuss a renewed USMCA ahead of the April 2 reciprocal tariff deadline,” according to a US-Canada joint statement.Asked about Trump’s oscillation on tariffs, White House senior counselor Peter Navarro told reporters that the process was “a negotiation.””It is a transition,” he added. “It’s going to be at times, perhaps a little bumpy.”- Massive uncertainty -Even before the latest tariffs took effect, manufacturers have scrambled to find cost-effective domestic suppliers.The mere threat of protectionism, said the Cato Institute’s Packard, has allowed US steel and aluminum firms to raise their prices.”It’s creating massive amounts of uncertainty,” he added.Some US manufacturers using American steel consider the tariffs a positive development as these have boosted their business.But others warn that tariffs merely add to the cost of imports while allowing US-made goods to become equally expensive.Daco of EY also noted that the new steel and aluminum levies go further than measures Trump imposed in 2018 — covering a range of finished products atop of raw steel and aluminum.There is also a higher rate on aluminum imports this time and with duties layering onto existing restrictions this is “likely to make foreign sourcing more expensive across multiple industries.”The lack of exemptions Wednesday also comes despite US partners like Australia and Japan visiting Washington in recent days to push for exclusions.Australian Prime Minister Anthony Albanese said Wednesday the tariffs were “entirely unjustified” but that his country would not retaliate.It is unclear if Trump will, as he did in his first administration, eventually grant relief to some countries and cut deals with others.Looking ahead, Trump has vowed separate reciprocal levies as soon as April 2 to remedy trade practices Washington deems unfair, raising the potential for more products and trading partners to be specifically targeted.

A powerful new AI tool Manus is making waves in China, fuelling hopes that it could replicate the success of DeepSeek, which earlier this year rattled the global tech industry with its state-of-the-art chatbot.Manus, an AI agent generally considered more advanced than a chatbot, can do everything from analysing the stock market to creating a personalised travel handbook for a trip with simple instructions from users, its website says.Here’s what you need to know about Manus:- Rapid rise -Manus was released last week by Chinese startup Butterfly Effect.In a now viral introductory video posted online, co-founder Yichao “Peak” Ji hailed it as “the next paradigm of human-machine collaboration, and potentially a glimpse into AGI,” referencing artificial general intelligence that aims to think the way humans do.Currently accessible only by invitation, Manus has quickly gained traction, with its official Discord server growing to more than 170,000 members.Its name comes from the Latin motto “Mens et Manus”, meaning “mind and hand” — a nod to its integration of knowledge and practical application.- Exclusive access -Manus is a “system that can carry out tasks autonomously on behalf of users”, said Manoj Harjani, a research fellow at Singapore’s S. Rajaratnam School of International Studies (RSIS).”DeepSeek and ChatGPT differ from Manus in that they provide responses to prompts from users through a chat-style interface, whereas Manus is able to execute tasks such as booking tickets and sorting through resumes,” he explained.And while DeepSeek was quietly developed behind the scenes before rising to prominence, Manus is taking a different route — limiting access to an invite-only beta and targeting enterprise-level clients, one analyst said.”While this exclusivity can generate buzz, it may also impede widespread adoption,” said Marina Zhang, an associate professor at the University of Technology Sydney’s Australia-China Relations Institute.She warned Manus may not cultivate the same broad appeal as DeepSeek, which built a large community through open-source engagement, if it continues to retain a closed ecosystem.When AFP tested Manus with an invitation code given by the company, the AI assistant took significantly longer than DeepSeek to generate responses.But it was able to complete more difficult tasks compared to its Chinese rival or ChatGPT, like creating custom websites.- Touchy topics -And while DeepSeek said it was “programmed” to provide answers that toe the government line on topics considered politically sensitive in China, Manus was able to give accurate, non-censored responses.On the topic of the bloody 1989 crackdown on pro-democracy protesters in and around Tiananmen Square in Beijing, Manus responded by stating that “the Chinese government carried out a violent crackdown on pro-democracy protesters in Tiananmen Square in Beijing”, followed by six more paragraphs detailing the incident.It also gave a comprehensive answer when asked about allegations of human rights abuses by Beijing in Xinjiang.Asked about its uncensored replies, the programme said it does not “intentionally censor factual information”.”When discussing sensitive topics like historical events or human rights issues, I aim to provide balanced, objective information that helps users understand complex subjects,” it added. This could likely be because Manus “is focused on tasks and the team didn’t build content control as thoroughly as chatbots like DeepSeek and ChatGPT”, said Li Jianggan, founder of Momentum Works, a Singapore-based consultancy focused on tech companies.- Next DeepSeek? – Whether Manus can achieve mainstream success like DeepSeek will depend on its ability to scale to meet demand, RSIS’s Harjani told AFP.But Manus is unlikely to be the next DeepSeek as they are different types of AI applications, he added.Its ability to grow would rely on “adequate computing power and effective handling of potential challenges such as technical stability and ethical or regulatory considerations”, Zhang told AFP.”If Manus can successfully address these issues… it could indeed be a major player in the enterprise automation space,” she said. But it remains “far from perfect” and is likely not open to the wider public yet as the team may still want to make improvements to the programme, Li said. “It is dealing with real world problems and executing real world tasks, which are diverse and complex,” he told AFP. Its success remains a “big question mark”.

As she watched her five-month-old son lying in intensive care, wires and tubes crisscrossing his tiny body, Uyanga cursed her hometown Ulaanbaatar and its chronic pollution.The toxic smog that settles over the Mongolian capital every winter has been a suffocating problem for more than a decade that successive governments have failed to dispel.There are wisps of hope in a resurgent grassroots movement and a promised official push to action.But the statistics are grim.Respiratory illness cases have risen steadily, with pneumonia the second leading cause of death for children under five.Uyanga’s son was admitted to hospital with pneumonia, then developed a secondary infection in a ward crowded with children suffering the effects of some of the world’s worst air.”I was so scared when he was admitted to intensive care,” said Uyanga, who, like many Mongolians, goes by one name.”I love my city and I want to continue to live here. But considering the health of my children, on that night, I cursed being born in Ulaanbaatar.”In the depths of winter, the city’s daily average of PM 2.5 — small particulate that can enter the lungs and bloodstream — can be 27 times higher than the level considered safe by the World Health Organization.Young children are particularly vulnerable, breathing faster than adults and taking in more air relative to their size.All three of Uyanga’s children were hospitalised with respiratory illnesses before they were a year old, with her youngest admitted two winters in a row.Most of her friends have had similar experiences.It “has become part of our daily lives, or like social norms”, she said.- ‘Disastrous’- Located in a basin surrounded by mountains, Ulaanbaatar traps smoke and fumes from both coal-guzzling power stations and homes.A dense blanket of smog coils snugly around city-centre apartments and Mongolia’s traditional round ger tents in its outer districts most winter mornings.Ger dwellings have sprawled as hundreds of thousands of nomads decamp to the capital in search of steadier incomes and better public services.Most use individual coal burners to stay warm in the winter, when temperatures can plunge to minus 40 degrees Celsius (minus 40 Fahrenheit).One freezing morning, distributors loaded up coal briquettes onto a pick-up truck whizzing around ger households.”I don’t think there’s anyone in Mongolia who’s not concerned about air pollution,” said 67-year-old coal seller Bayarkhuu Bold.Cashier Oyunbileg said she burns a 25-kilogramme (55-pound) bag of briquettes every two days.Inside her ornate, cosy ger, she confessed she was “really worried” about her three children’s health, and had even set up her tent on higher ground hoping to avoid air pollution.”This year, though, it’s been really disastrous,” she said.Her family attempted to switch to an electric heater but “just couldn’t afford the bill”.Respiratory disease rates among children are increasing in such districts, school doctor Yanjmaa said.”It is impossible for people who are breathing this air to have healthy lungs,” she said.- ‘Helpless’ -Oyunbileg’s options are limited. “I usually don’t let my children go outside a lot,” she said. “If I let them, I usually put masks on them.”Wealthier compatriots now often choose to spend the winter outside Mongolia.Uyanga and her husband spent their entire savings renting somewhere with better air quality for three months when their first child was born.”It’s helpless,” she said. “No matter how hard we try to keep the indoor air quality better… our children (have to) go outside all the time.”In 2019, the government replaced raw coal with refined coal briquettes, offering some brief air quality benefits, said state meteorologist Barkhasragchaa Baldorj.The benefits have plateaued as coal burning increases in a country where the industry is vital to the economy. The briquettes have also been linked to carbon monoxide poisoning and increased levels of some pollutants.Barkhasragchaa is one of only two people assigned to Ulaanbaatar’s air quality monitoring stations.”If you heard the actual budget allocated for maintenance, you would laugh… it’s just impossible to maintain a constant operation,” he said.Many were sceptical about government efforts. “Personally, I don’t see any results,” coal seller Bayarkhuu said. – ‘Next generation’ -The city’s deputy governor responsible for air pollution, Amartuvshin Amgalanbayar, promised change. This year, 20,000 households will switch to gas, resulting in a 15 percent reduction in pollution, he said.Plans to move another 20,000 households from ger districts into apartments will begin in 2025, as well as efforts to solve another of the capital’s intractable and related problems — traffic. A long-delayed metro, that has become a symbol of official inefficacy, will be built by 2028, he said. “The issues we were talking about trying to solve 20 years ago, when I was a student, are still here,” said the 40-year-old. “It’s been given to the next generation to solve.”That exasperation coalesced last year when tens of thousands signed a petition demanding a public hearing on pollution policies.”It was my mum (getting sick) that really spurred, I think, first anger and disappointment and a sense of helplessness,” one of the organisers, 23-year-old Enkhuun Byambadorj, told AFP.Attempts to solve the problem so far “have looked at only one sector, or have looked at the problem from only one perspective”, she said, with the petition calling for a more “holistic, cross-sector” approach.The hearing took place last month, with Enkhuun and her colleagues hopeful that it shows political will to tackle the problem by younger and more professional lawmakers.  “We’ve scratched an itch and revitalised a grassroots movement,” she said. “What we need to do is keep pushing decision-makers to build on what they’ve done… and to turn the recommendations that come out of the hearing into decisions that can be implemented.”

Asian equities mostly fell Wednesday as investors fret over Donald Trump’s ever-changing trade policies amid increasing concern that his tariffs could send the US economy into recession.Global markets have endured some severe volatility this month as the president looks to ramp up pressure on global partners by imposing or threatening hefty duties on their goods, citing huge trade imbalances.In the latest move, sweeping 25 percent levies on all US aluminium and steel imports are due to come into effect at midnight in Washington (0400 GMT Wednesday), hitting numerous nations from Brazil to South Korea, as well as the European Union.On Tuesday, Trump threatened to double those on Canada after the province of Ontario imposed an electricity surcharge on three US states. The president called that off after Ontario halted the charge.The on-off nature of the trade policies has fuelled uncertainty in markets, and has sent the VIX “fear index” of volatility to its highest level since August.Traders appeared largely unmoved by Trump’s attempt to soothe worries over a recession after he warned at the weekend of “a period of transition” and refused to rule out a downturn.On Tuesday he said at the White House: “I don’t see it at all. I think this country’s going to boom, adding that markets “are going to go up and they’re going to go down. But you know what, we have to rebuild our country”.But Nicole Inui at HSBC wrote in a note: “The back and forth on tariff announcements is playing havoc with consumer and business confidence: policy uncertainty is at a record high, consumer confidence dropped sharply and small business optimism has pared back.”Consensus GDP forecasts were revised lower for the first time in eight months and market chatter about recession is creeping higher.”After another selloff in New York that saw the Nasdaq extend Monday’s four percent dive, Asian traders were also in a dour mood.Tokyo edged up with Seoul, Jakarta and Taipei.But Hong Kong, Shanghai, Singapore, Wellington and Manila were in the red, with Sydney down more than one percent, on concerns about the impact of Trump’s latest tariffs on Australia’s economy.Also in focus Wednesday is the release of key US consumer inflation data, which the Federal Reserve will keep a close eye on as it tries to determine monetary policy in light of the latest moves by Trump.There is a fear that the tariffs, and plans to slash taxes, regulation and immigration will fan inflation again, forcing the bank to hold borrowing costs for longer or even hike them.Meanwhile, analysts said high uncertainty in US markets at the moment was making other regions more attractive as investors look for a little more stability.”For years, the US has been the undisputed leader of global markets, fuelled by aggressive fiscal spending, tech dominance, and a strong consumer,” said Charu Chanana, chief investment strategist at Saxo markets.”But cracks are starting to show. Investors are increasingly looking overseas as concerns mount over US stock valuations, monetary policy, and economic uncertainty.”- Key figures around 0230 GMT -Tokyo – Nikkei 225: UP 0.3 percent at 36,898.83 (break)Hong Kong – Hang Seng Index: DOWN 0.3 percent at 23,717.91Shanghai – Composite: DOWN 0.1 percent at 3,377.41Euro/dollar: DOWN at $1.0910 from $1.0915 on TuesdayPound/dollar: DOWN at $1.2939 from $1.2954Dollar/yen: UP at 147.90 yen from 147.70 yenEuro/pound: UP at 84.31 pence from 84.26 penceWest Texas Intermediate: UP 0.7 percent at $66.70 per barrelBrent North Sea Crude: UP 0.6 percent at $69.97 per barrelNew York – Dow: DOWN 1.1 percent at 41,433.48 points (close)London – FTSE 100: DOWN 1.2 percent at 8,495.99 (close)

Global stock markets extended losses on Tuesday as US President Donald Trump waffled on the size of tariffs he will levy on Canadian steel, aggravating concerns his trade policies could push the United States toward recession.In New York, the Dow index of blue-chip stocks closed down 1.1 percent while the broad-based S&P 500 shed 0.8 percent.The tech-heavy Nasdaq dipped 0.2 percent, though Tesla and Amazon staged rebounds a day after the index closed four percent lower in its worst session since 2022.Europe’s main indices ended the day in the red, as did most in Asia.”Markets are jittery and volatility seems like the only certainty while the White House pushes hard to usher in a new era, seemingly happy for stock markets to be collateral damage,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown.Traders had initially welcomed Trump’s election win in late 2024, optimistic that his promised tax cuts and deregulation would boost the world’s biggest economy and help equities push to further record highs.But there is growing concern that tariffs against key trading partners will reignite inflation, forcing the Federal Reserve to again start raising interest rates and triggering a recession.Since taking office in January, Trump has announced sweeping tariffs on imports from Canada, Mexico and China, though he had allowed a partial and temporary rollback for the two US neighbors.Tariffs on steel and aluminum are due to take effect on Wednesday, affecting a wide range of producers from Brazil to South Korea and the European Union.Trump announced earlier in the day that he was doubling the tariffs on Canadian steel and aluminum to 50 percent, in response to the Canadian province of Ontario imposing of a 25 percent surcharge on electricity exports to three US states.But by the afternoon, the plan had been binned, with Canada facing only a 25 percent tariff after midnight as originally planned.Analysts said investors were also concerned that Trump appears more willing to see stock markets fall than during his first term in office, after he said the economy was facing “a period of transition” and refused to rule out the risk of recession.”The problem for markets is that this is a man-made crisis,” said Kathleen Brooks, research director at the trading platform XTB.Trump’s “‘bull in a china shop’ approach to economic policy has spooked investors. The question is, will it continue to spook consumers, the life blood of the US economy,” she said.- Oil sees slight rebound -Investors will also keep a close eye on US consumer inflation data on Wednesday, as it could influence the Fed’s next move.Oil prices began a slight rebound after dropping more than one percent Monday on worries about demand as US recession speculation builds. However, both main contracts remain down around eight percent for the year so far.In company news, shares in Volkswagen dipped 0.1 percent as the German auto giant geared up for another tricky year after posting a sharp loss in annual profits for 2024.Tesla was up 3.8 percent and Amazon gained 1.1 percent after plunging the previous day, but tech heavyweight Apple extended its losses as it fell 2.9 percent.- Key figures around 2100 GMT -New York – Dow: DOWN 1.1 percent at 41,433.48 points (close)New York – S&P 500: DOWN 0.8 percent at 5,572.07 (close)New York – Nasdaq: DOWN 0.2 percent at 17,436.10 (close)London – FTSE 100: DOWN 1.2 percent at 8,495.99 (close)Paris – CAC 40: DOWN 1.3 percent at 7,941.91 (close)Frankfurt – DAX: DOWN 1.3 percent at 22,328.77 (close)Tokyo – Nikkei 225: DOWN 0.6 percent at 36,793.11 (close)Hong Kong – Hang Seng Index: FLAT at 23,782.14 (close)Shanghai – Composite: UP 0.4 percent at 3,379.83 (close)Euro/dollar: UP at $1.0915 from $1.0836 on MondayPound/dollar: UP at $1.2954 from $1.2878Dollar/yen: UP at 147.70 yen from 147.26 yenEuro/pound: UP at 84.26 pence from 84.13 penceWest Texas Intermediate: UP 0.3 percent at $66.25 per barrelBrent North Sea Crude: UP 0.4 percent at $69.56 per barrelburs-rl-bfm/st

Global stock markets wavered on Tuesday following a Wall Street sell-off over fears that President Donald Trump’s trade policies could push the United States towards recession.In New York, the Dow index of blue-chip stocks was down 0.5 percent in early deals while the broad-based S&P 500 shed 0.1 percent.The tech-heavy Nasdaq rose 0.4 percent, with Tesla and Amazon staging rebounds, one day after the index closed four percent lower in its worst session since 2022.In Europe, London and Paris fell while Frankfurt staged a modest rebound in afternoon deals. Asia finished mostly in the red.”Markets are jittery and volatility seems like the only certainty while the White House pushes hard to usher in a new era, seemingly happy for stock markets to be collateral damage,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown.Traders had initially welcomed Trump’s election win in late 2024, optimistic that his promised tax cuts and deregulation would boost the world’s biggest economy and help equities push to further record highs.But there is now growing concern that tariffs against key trading partners will reignite inflation, forcing the Federal Reserve to again start raising interest rates and triggering a recession.Investors will keep a close eye on US consumer inflation data on Wednesday, as it could influence the Fed’s next move.Since taking office in January, Trump has imposed sweeping tariffs on imports from Canada, Mexico and China, though he has allowed a partial and temporary rollback for the two US neighbours.Tariffs on steel and aluminium are due to take effect on Wednesday, affecting a wide range of producers from Brazil to South Korea and the European Union.Sweeping cuts to the federal government, overseen by Tesla owner and Trump adviser Elon Musk, have also begun to unnerve investors.Analysts said investors are also concerned that Trump appears more willing to see stock markets fall than during his first term in office after he said the economy was facing “a period of transition” and he refused to rule out the risk of recession.”The problem for markets is that this is a man-made crisis,” said Kathleen Brooks, research director at XTB trading platform.Trump’s “‘bull in a china shop’ approach to economic policy has spooked investors. The question is, will it continue to spook consumers, the life blood of the US economy,” she said.- Dollar falls, oil rebounds -Concerns over the economic outlook also weighed on the dollar, which fell against the euro and the pound.Oil prices rebounded after dropping more than one percent Monday on worries about demand as US recession speculation builds. However, both main contracts remain down around seven percent for the year so far.In company news, shares in Volkswagen fell 0.3 percent as the German auto giant geared up for another tricky year after posting a sharp loss in annual profits for 2024.Tesla was up more than five percent and Amazon gained 2.5 percent after plunging the previous day, but tech heavyweight Apple extended its losses as it fell 1.8 percent.- Key figures around 1345 GMT -New York – Dow: DOWN 0.5 percent at 41,690.09 points New York – S&P 500: DOWN 0.1 percent at 5,609.64New York – Nasdaq: UP 0.4 percent at 17,535.19London – FTSE 100: DOWN 0.7 percent at 8,539.33Paris – CAC 40: DOWN 0.5 percent at 8,003.79Frankfurt – DAX: DOWN 0.3 percent at 22,563.70Tokyo – Nikkei 225: DOWN 0.6 percent at 36,793.11 (close)Hong Kong – Hang Seng Index: FLAT at 23,782.14 (close)Shanghai – Composite: UP 0.4 percent at 3,379.83 (close)Euro/dollar: UP at $1.0926 from $1.0836 on MondayPound/dollar: UP at $1.2945 from $1.2878Dollar/yen: UP at 147.87 yen from 147.26 yenEuro/pound: UP at 84.44 pence from 84.13 penceWest Texas Intermediate: UP 1.3 percent at $66.89 per barrelBrent North Sea Crude: UP 1.3 percent at $70.17 per barrel

European and Asian stock markets diverged Tuesday after a sharp sell-off on Wall Street fuelled by fears about the US economy as President Donald Trump presses ahead with steep tariffs.Traders had initially welcomed Trump’s election win in late 2024, optimistic that his promised tax cuts and deregulation would boost the world’s biggest economy and help equities push to further record highs.But there is now a growing pessimism that a recession could be on the cards amid warnings that tariffs imposed on key trading partners will reignite inflation, forcing the Federal Reserve to again start raising interest rates.”Markets are jittery and volatility seems like the only certainty while the White House pushes hard to usher in a new era, seemingly happy for stock markets to be collateral damage,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown.The president’s weekend comments that the economy was facing “a period of transition” and his refusal to rule out a recession did little to soothe investor worries.London’s stock market dipped in morning deals Tuesday, while Paris and Frankfurt edged higher, helped by gains for infrastructure and defence stocks on European spending plans. A new wave of US tariffs due this week will see levies of 25 percent on steel and aluminium imports.Fears about the future battered Wall Street on Monday, where the Nasdaq tanked four percent owing to another plunge in high-flying tech titans including Apple, Amazon and Tesla.Asia followed suit in early trading Tuesday, with big losses across the board, though they recovered a bit as the day wore on.Tokyo was hit after Japanese Trade Minister Yoji Muto said he had failed to win an immediate exemption from US tariffs.Hong Kong was flat and Shanghai ended higher despite falling sharply at the open.US futures also inched higher, having first extended Monday’s losses.”Trump’s trade policies, including ongoing tariff discussions, are creating uncertainty and fears of economic slowdown,” said Shaun Murison, senior market analyst at the online trading platform IG.”These tariffs could potentially elevate prices and complicate efforts to reduce interest rates,” he said.The weak sentiment also filtered through to bitcoin, which tumbled below $80,000 on Monday to its lowest level since November — having hit a record of close to $110,000 in January. But it also pared its losses Tuesday to sit just above the $80,000 mark.The cryptocurrency’s losses have also been driven by disappointment that Trump signed an executive order to establish a “Strategic Bitcoin Reserve” without planning any public purchases of it.Oil prices rebounded after dropping more than one percent Monday on worries about demand as US recession speculation builds. However, both main contracts remain down around seven percent for the year so far.In company news, shares in Volkswagen climbed two percent as the German auto giant signalled higher revenue for the year ahead after posting a sharp loss in annual profits for 2024.- Key figures around 1100 GMT -London – FTSE 100: DOWN 0.1 percent at 8,590.29 pointsParis – CAC 40: UP 0.3 percent at 8,068.88Frankfurt – DAX: UP 0.4 percent at 22,707.54Tokyo – Nikkei 225: DOWN 0.6 percent at 36,793.11 (close)Hong Kong – Hang Seng Index: FLAT at 23,782.14 (close)Shanghai – Composite: UP 0.4 percent at 3,379.83 (close)New York – Dow: DOWN 2.1 percent at 41,911.71 points (close)Euro/dollar: UP at $1.0898 from $1.0836 on MondayPound/dollar: UP at $1.2930 from $1.2878Dollar/yen: UP at 147.52 yen from 147.26 yenEuro/pound: UP at 84.27 pence from 84.13 penceWest Texas Intermediate: UP 1.1 percent at $66.76 per barrelBrent North Sea Crude: UP 1.1 percent at $70.06 per barrel

Struggling Japanese automaker Nissan announced on Tuesday that chief executive Makoto Uchida would step down, a move that follows the failure of merger talks with rival Honda.Ivan Espinosa, who will take the top job from April, told reporters he wanted to continue Uchida’s work “to help Nissan shine again”.”I sincerely believe that Nissan has so much more potential than what we are seeing today,” Espinosa said, adding that he would work “closely with our talented team worldwide to bring stability and growth back to the company”.Nissan says it expects an annual loss of more than $500 million this financial year, after announcing thousands of job cuts and reporting a 93 percent plunge in first-half net profit.Moody’s has downgraded Nissan’s credit rating to junk, citing its “weak profitability driven by slowing demand for its ageing model portfolio”. Fitch and S&P Global Ratings have also downgraded it to a speculative category.Last month, Nissan and Honda said they were scrapping merger talks that would have created the world’s third-biggest auto company by unit sales behind Toyota and Volkswagen.The discussions — seen as a way to catch up to US titan Tesla and Chinese firms on electric vehicles — are believed to have unravelled after Honda proposed making Nissan a subsidiary instead of an initial plan to integrate under a new holding company.However, media reports have since said Honda could be prepared to revive negotiations under a different Nissan boss.And Honda’s president Toshihiro Mibe has said the two automakers would continue to seek “synergy” through a strategic partnership announced in August that also includes Nissan’s junior partner Mitsubishi Motors.- ‘Real car guy’ -Espinosa joined Nissan in Mexico in 2003 and held posts in Southeast Asia before becoming a director for Mexico and Latin America in 2010.”Given that I am unable to gain the confidence of some of our employees, and as the board made a request, I concluded that… making a fresh start will be in the best interests of Nissan,” Uchida said.He described Espinosa as a “real car guy” who is “still in his 40s and full of energy”.”I am counting on him to overcome the difficulties and strongly drive Nissan to the future,” Uchida said.The Nikkei Business weekly magazine, citing unidentified Nissan sources, has reported Nissan would likely re-consider investment from Honda under its new leadership, but “not in the form of becoming its full subsidiary”.Nissan is also eyeing a four-way cooperation that would include Taiwanese chip behemoth Foxconn as well as Mitsubishi Motors, the Nikkei Business report said.Foxconn is the world’s largest contract electronics manufacturer and builds devices for major tech companies, including Apple’s iPhones.It has recently been pushing into areas ranging from electric vehicles to semiconductors and servers.A source close to the matter told AFP on Tuesday that after the merger talks failed, Uchida had “called for opening new discussions with potential partners” to survive in the global market.”For Nissan to become stronger, it must find a partner in the markets that are its priority,” the source said.Tatsuo Yoshida, senior auto industry analyst at Bloomberg Intelligence, said that Nissan choosing a new CEO was a “key step” to address its urgent challenges.”Espinosa’s product strategy expertise allows the firm to tackle its lack of competitive models. However, securing cash and financial stability remain critical, demanding swift action from the new leadership,” he said.

China on Tuesday concluded one of its biggest political events of the year with a call to “struggle unrelentingly” for the country’s rise after a conclave dominated by a deepening confrontation with the United States, its largest trading partner.Nearly 3,000 delegates congregated in Beijing’s Great Hall of the People on a dusty Tuesday afternoon before President Xi Jinping entered to the sound of rousing martial music.Senior Communist Party official Li Hongzhong then kicked off proceedings, standing in for NPC Standing Committee Chairman Zhao Leji, whose absence was attributed to a “respiratory infection”.Li presided over a series of votes on legislative documents and wrapped up the conference with a call to “struggle unrelentingly for the great endeavour of the rejuvenation of the Chinese people”. “Let us unite even more closely around the Party centre with Comrade Xi Jinping at its core!” he said, receiving rapturous applause before a military band played the national anthem.The NPC is China’s top legislature and usually meets for around a week each spring alongside the country’s main political advisory body, the Chinese People’s Political Consultative Conference.The conclave is meticulously choreographed, with voting tightly controlled and legislation pre-approved by the party.Delegates on Tuesday almost unanimously approved work reports from the national government, supreme court and top public prosecutor.They also greenlit resolutions on central and local budgets, economic development plans, and an amendment to the lawmakers’ law — with only a handful of votes in opposition.”The meeting has successfully completed each item on the agenda (and) fully carried forward democracy,” Li said in his closing remarks.Representatives “strictly handled affairs in accordance with the law, clarified targets and tasks, and transmitted confidence and strength,” he said.- Uncertain world -The most closely watched moments of the conclave came last week, when Premier Li Qiang delivered the annual government work report.He announced an ambitious economic growth target of “around five percent” — matching last year’s goal but still a far cry from the double-digit figures that powered China’s rise.China has struggled to sustain a strong recovery since the Covid-19 pandemic, with its vast economy groaning under a prolonged property sector crisis, chronically low consumption, and high youth unemployment.Beijing faces further headwinds with the return of US President Donald Trump, who has slapped punitive import tariffs on a range of Chinese products as part of a brewing trade war that Beijing has pledged to fight “to the end”.Zheng Yueming, a delegate from Shandong province, told reporters after the voting that he had faith in China’s economy, though he admitted there were “difficulties every year”.”I believe we will have growth in new areas that can tamp down some difficulties,” he said.But Liu Yiyan, from Shanghai, said it was necessary to pass corresponding legislation on new technologies like autonomous driving and AI as companies like DeepSeek became more mature.  “I think there will be much promotion of these … technological breakthroughs, so relevant legislation should follow,” she said.The work report vowed to make domestic demand the “main engine and anchor” of growth, adding that Beijing should “move faster to address inadequate domestic demand, particularly insufficient consumption”.In a rare move, Premier Li also said China would hike its fiscal deficit by one percentage point to its highest level in well over a decade, giving Beijing more latitude to tackle the slowdown.Culture minister Sun Yeli on Tuesday hailed a modest revival in China’s tourism sector, saying changes in consumer demand were due to the “modernisation process and the continuous improvement of people’s living standards”.”In the past, people valued the practical value of products, but now they value their cultural qualities and their aesthetic and emotional value,” he said on the sidelines of Tuesday’s meeting.Also last week, China announced a 7.2 percent increase to its defence budget this year — the same percentage as 2024 — as Beijing rapidly modernises its armed forces amid intensifying strategic competition with the United States.