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A US government panel failed to reach a consensus on whether US Steel’s acquisition by Nippon Steel threatens Washington’s national security, shifting the decision to the White House, the Japanese company said late Monday.The deadlock by the Committee on Foreign Investment in the United States (CFIUS) means the controversial $14.9 billion transaction will now be referred to President Joe Biden, who is legally required to act within a 15-day deadline.”Nippon Steel has been informed by CFIUS that the Committee has referred this matter to President Biden after failing to reach a consensus on our transaction with US Steel,” Nippon said. Biden has criticized the deal for months, joining a loud consensus of US power players who have slammed the transaction, including President-elect Donald Trump and the incoming vice president, JD Vance. The deal became ensnared in the 2024 presidential campaign when Pennsylvania emerged as a critical swing state and leaders of the United Steelworkers (USW) union loudly opposed the transaction. Nippon officials had hoped to have more success after the election, but there have been few signs of change in the dynamics. US media have reported that the killing of the deal could prompt litigation from the steel companies. There are also questions about diplomatic fallout from derailing a transaction championed by Japan, a close US ally.Nippon said the deal should go through.”During the 15-day period that the President has to make a final decision, we urge him to reflect on the great lengths that we have gone to address any national security concerns that have been raised and the significant commitments we have made to grow US Steel, protect American jobs, and strengthen the entire American steel industry, which will enhance American national security,” Nippon said.”We are confident that our transaction should and will be approved if it is fairly evaluated on its merits.”US Steel also called on Biden to approve the deal, noting that Nippon is based in “one of the United States’ closest allies” and describing the transaction as a means to “combat the competitive threat from China.”The Nippon deal is “the best way, by far, to ensure that US Steel, including its employees, communities, and customers, will thrive well into the future,”  US Steel said. Nippon has argued that the transaction would pump much-needed capital to update plants in Pennsylvania’s Mon Valley, the oldest of which dates to 1875. The company has described the transaction as a lifeline to Pennsylvania’s much-diminished steel industry, vowing to keep US Steel’s headquarters in Pittsburgh. But the USW union has characterized Nippon’s commitments as untrustworthy, while slamming US Steel executives as being motivated by the huge windfalls they would likely make from the sale.”The proposed US Steel-Nippon transaction represents nothing more than corporate greed, selling out American workers and jeopardizing the long-term future of the domestic steel industry and our national security,” USW President David McCall said Monday as he urged Biden to block the transaction.

US President-elect Donald Trump has threatened to demand control of the Panama Canal be returned to Washington, complaining of “unfair” treatment of American ships and hinting at China’s growing influence.Here are five things to know about the waterway connecting the Pacific and Atlantic oceans.- Panamanian operated -The 80-kilometer (50-mile) interoceanic waterway is operated by the Panama Canal Authority, an autonomous public entity.The Central American nation’s constitution describes the canal as an “inalienable heritage of the Panamanian nation” that is open to vessels “of all nations.”The United States is its main user, accounting for 74 percent of cargo, followed by China with 21 percent.Panama’s government sets the price of tolls based on canal needs and international demand. Rates depends on a vessel’s cargo capacity.”The canal has no direct or indirect control from China, nor the European Union, nor the United States or any other power,” Panama’s President Jose Raul Mulino said Sunday as he dismissed Trump’s threat.All vessels, including warships and submarines, are given a Panama Canal pilot.- National history -Panama’s independence from Colombia in 1903 is linked to the canal.Following the failure of French count Ferdinand de Lesseps to open a channel through the isthmus, the United States promoted the separation of the province of Panama and signed a treaty with the nascent country that ceded land and water in perpetuity to build it.After 10 years of construction and an investment of $380 million, the canal was inaugurated on August 15, 1914 with the transit of the steamer Ancon.Some 25,000 deaths from disease and accidents were recorded during its construction.The canal “is part of our history” and “an irreversible achievement,” Mulino said.- American enclave -Washington’s establishment of a “Canal Zone” — an enclave with its own military bases, police and justice system — gave rise to decades of demands by Panamanians to reunify the country and take control of the waterway.In 1977, Panamanian nationalist leader Omar Torrijos and US president Jimmy Carter signed treaties that allowed the canal to be transferred to Panama on December 31, 1999.”Any attempt to reverse this historic achievement not only dishonors our struggle, but is also an insult to the memory of those who made it possible,” former president Martin Torrijos, the general’s son, wrote on social media.Under the treaties, supported by more than 40 countries, the canal is deemed neutral and any ship can pass through.The only conditions are that ships must comply with safety regulations and military vessels from countries at war must not pass through at the same time.- System of locks -Unlike Egypt’s Suez Canal, the Panama Canal operates using freshwater stored in two reservoirs.A drought led to a reduction in the number of transits in 2023, but the situation has since normalized.The canal, which has a system of locks to raise and lower vessels, transformed global shipping.Crafts can travel between the two oceans in about eight hours without having to sail all the way around Cape Horn, the southern tip of the Americas. The canal allows a ship to shave 20,300 kilometers off a journey from New York to San Francisco.- Cash cow -Five percent of world maritime trade passes through the canal, which connects more than 1,900 ports in 170 countries.By the early 21st century, it had become too small, so it was expanded between 2009 and 2016.Today, the canal can accommodate ships up to 366 meters long and 49 meters wide (1,200 feet by 161 feet) — equivalent to almost four football pitches.It generates six percent of Panama’s national economic output and since 2000 has pumped more than $28 billion into state coffers.More than 11,200 ships transited the canal in the last fiscal year carrying 423 million tons of cargo.

European stocks bounced around Monday while US equities shook off early weakness to push higher as investors waited to see if a so-called Santa Claus rally sweeps over the market.Global stock markets had a tumultuous time last week, spiraling lower after the US Federal Reserve signaled fewer interest rate cuts than had been expected for 2025.But it ended on a positive note as traders welcomed below-forecast US inflation data that raised hopes about the health of the world’s biggest economy.That helped Asian markets move higher on Monday, but the positive trend faltered in Europe and stumbled initially in the United States.”Another up leg in US yields not only put pressure on stock indices but also drove the greenback higher,” said IG analyst Axel Rudolph.But after a sluggish start, US stocks rose progressively in a quiet session with analysts pointing to low pre-holiday trading volumes.”Stocks didn’t really have any direction in the morning, then we got this tech rally that just sort of drifted higher all day,” said Steve Sosnick of Interactive Brokers.Analysts view elevated Treasury bond yields as a threat to year-end gains in an historically strong period of the calendar.Known as a Santa Claus rally, there are various explanations for the phenomenon including seasonal optimism and end-of-year tax considerations. But there remains some trepidation among investors as Donald Trump prepares to return to the White House, pledging to cut taxes, slash regulations and impose tariffs on imports, which some economists warn could reignite inflation.”The initial response to the US election was positive as investors focused on the obvious tailwinds to profitability: lower corporate tax rates and less regulation,” said Ronald Temple, chief market strategist at Lazard. “However, I expect much more dispersion within the equity market when the reality of a much-less-friendly trade environment sets in.”In Europe, the FTSE 100 moved higher as the pound slid following data that showed that the UK economy stagnated in the third quarter, revised down from initial estimates of 0.1 percent growth. Official data out of Spain on Monday showed that the Spanish economy grew 0.8 percent in the third quarter as domestic consumption and exports increased, comfortably outstripping the European Union average.In company news, shares in crisis-hit German auto giant Volkswagen lost more than three percent on the back of news Friday that it plans to axe 35,000 jobs by 2030 in a drastic cost-cutting plan.Shares in Japanese auto giant Honda rose over three percent after it announced Monday an agreement to launch merger talks with struggling compatriot Nissan that could create the world’s third largest automaker.- Key figures around 2130 GMT -New York – Dow: UP 0.2 percent at 42,906.95 (close)New York – S&P 500: UP 0.7 percent at 5,974.89 (close)New York – Nasdaq Composite: UP 1.0 percent at 19,764.89 (close)London – FTSE 100: UP 0.2 percent at 8,102.72 (close)Paris – CAC 40: FLAT at 7,272.32 (close)Frankfurt – DAX: DOWN 0.2 percent at 19,848.77 (close)Tokyo – Nikkei 225: UP 1.2 percent at 39,161.34 (close)Hong Kong – Hang Seng Index: UP 0.8 percent at 19,883.13 (close)Shanghai – Composite: DOWN 0.5 percent at 3,351.26 (close)Euro/dollar: DOWN at $1.0408 from $1.0430 on FridayPound/dollar: DOWN at $1.2531 from $1.2570Dollar/yen: UP at 157.14 yen from 156.31 yen Euro/pound: UP at 83.03 pence from 82.97 penceWest Texas Intermediate: DOWN 0.3 percent at $69.24 per barrelBrent North Sea Crude: DOWN 0.4 percent at $72.63 per barrelburs-jmb/jgc

President-elect Donald Trump’s repeated support for TikTok has sparked speculation about potential solutions to prevent the app’s impending ban in the United States, though the path forward remains unclear.”We got to keep this sucker around for a little while,” Trump told supporters on Sunday, just days after meeting with TikTok CEO Shou Zi Chew in Florida.Trump, who credits the wildly popular platform with delivering him a large young user base, opposes banning TikTok partly because he believes it would primarily benefit Meta, the Mark Zuckerberg-led company behind Instagram and Facebook.The situation is complex, according to University of Richmond School of Law professor Carl Tobias, given the various potential solutions and Trump’s unpredictable nature.Congress overwhelmingly passed legislation, signed by President Joe Biden in April, that would block TikTok from US app stores and web hosting services unless Beijing-based ByteDance sells its stake by January 19.US officials and lawmakers grew wary of the potential for the Chinese government to influence ByteDance or access the data of TikTok’s American users.Even with Trump’s decisive election victory and incoming Republican-led Congress, acquiescing to the president-elect’s desire and preventing the ban faces significant hurdles. The law enjoyed rare bipartisan support in a divided Washington, making its outright repeal through a vote in Congress politically unlikely even with Trump’s influence over Republicans.The Supreme Court may offer the clearest path forward. TikTok has appealed to the nation’s highest court, arguing the law violates First Amendment rights to free speech.The court, which is dominated by Trump-aligned conservatives, will hear the case on January 10, just nine days before the ban takes effect. This follows a lower appeals court’s unanimous decision to uphold the law in December.Another possibility, according to Tobias, is that a Trump-led Department of Justice could determine ByteDance has addressed the law’s national security concerns. However, such a move would likely be seen as caving to China by Congress and others.The final option is ByteDance selling to a non-Chinese buyer, though the company has consistently refused this possibility.With 170 million monthly active users, acquiring TikTok’s US operations would require substantial resources. As president, Trump could extend the ban deadline by 90 days to facilitate a transaction.- ‘Deal of the Century’ -Few potential buyers have emerged, with major tech companies likely deterred by antitrust concerns.Former Trump Treasury secretary Steve Mnuchin, who runs a private equity fund backed by Japan’s SoftBank Group and Abu Dhabi’s Mubadala sovereign wealth fund, has expressed interest.During a recent event with Trump, SoftBank CEO Masayoshi Son pledged to invest $100 billion in the US economy, though specific investments weren’t detailed.Other contenders include US real estate billionaire Frank McCourt, who aims to make social media safer through his Project Liberty organization. Elon Musk, given his proximity to Trump and ownership of X, could also have a role to play, as he has expressed plans to transform the text-focused platform into something more like TikTok.A senior Republican lawmaker recently suggested Trump might orchestrate a “deal of the century” satisfying both US concerns and ByteDance’s interests. The chairman of the US House committee on China, John Moolenaar, told Fox News Digital that once ByteDance accepts it must comply with US law, the situation could progress rapidly.Any agreement would need Beijing’s approval, with US-China relations expected to remain tense during Trump’s upcoming term.This isn’t the first attempt to resolve TikTok’s US status. In 2020, Trump also threatened a ban unless ByteDance sold its US operations.While Oracle and Walmart reached a preliminary agreement with ByteDance for ownership stakes, legal challenges and the transition to the Biden administration prevented the deal’s completion.

European and US stocks bounced around Monday as investors waited to see if a so-called Santa Claus rally sweeps over the market.Global stock markets had a tumultuous time last week, spiralling lower after the US Federal Reserve signalled fewer interest rate cuts than had been expected for 2025.But it ended on a positive note as traders welcomed below-forecast US inflation data that raised hopes about the health of the world’s biggest economy.US inflation data for November came in lower than expected, providing some optimism that policymakers were winning the battle against rising prices and would have room to keep cutting rates.That helped Asian markets move higher on Monday, but the positive trend faltered in Europe and the United States.”Another up leg in US yields not only put pressure on stock indices but also drove the greenback higher,” said IG analyst Axel Rudolph.But Briefing.com analyst Patrick O’Hare said many expect a rebound this week.”That expectation is rooted in the understanding that the last five trading days of the year and the first two trading days of the new year are typically accented with a positive bias,” he said.Known as a Santa Claus rally, there are various explanations for the phenomenon including seasonal optimism and end-of-year tax considerations. Sentiment was boosted by news that US lawmakers had reached a deal over the weekend to avert a Christmas-time government shutdown.Still, there remains some trepidation among investors as Donald Trump prepares to return to the White House, pledging to cut taxes, slash regulations and impose tariffs on imports, which some economists warn could reignite inflation.”The initial response to the US election was positive as investors focused on the obvious tailwinds to profitability: lower corporate tax rates and less regulation,” said Ronald Temple, chief market strategist at Lazard. “However, I expect much more dispersion within the equity market when the reality of a much-less-friendly trade environment sets in.”In Europe, the FTSE 100 moved higher as the pound slid following data that showed that the UK economy stagnated in the third quarter, revised down from initial estimates of 0.1 percent growth. “The economy stood still between July and September, and that was before the budget cast another chill, and caused output to shrink in October,” said Susannah Streeter, head of money and markets at Hargreaves. Official data out of Spain on Monday showed that the Spanish economy grew 0.8 percent in the third quarter as domestic consumption and exports increased, comfortably outstripping the European Union average.In company news, shares in crisis-hit German auto giant Volkswagen lost more than three percent on the back of news Friday that it plans to axe 35,000 jobs by 2030 in a drastic cost-cutting plan.Shares in Japanese auto giant Honda rose over three percent after it announced Monday an agreement to launch merger talks with struggling compatriot Nissan that could create the world’s third largest automaker.- Key figures around 1630 GMT -New York – Dow: DOWN 0.5 percent at 42,632.25 pointsNew York – S&P 500: FLAT at 5,932.07New York – Nasdaq Composite: UP 0.4 percent at 19,647.60London – FTSE 100: UP 0.2 percent at 8,102.72 (close)Paris – CAC 40: FLAT at 7,272.32 (close)Frankfurt – DAX: DOWN 0.2 percent at 19,848.77 (close)Tokyo – Nikkei 225: UP 1.2 percent at 39,161.34 (close)Hong Kong – Hang Seng Index: UP 0.8 percent at 19,883.13 (close)Shanghai – Composite: DOWN 0.5 percent at 3,351.26 (close)Euro/dollar: DOWN at $1.0400 from $1.0431 on FridayPound/dollar: DOWN at $1.2515 from $1.2567Dollar/yen: UP at 157.17 yen from 156.45 yen Euro/pound: UP at 83.09 pence from 82.98 penceWest Texas Intermediate: DOWN 1.0 percent at $68.79 per barrelBrent North Sea Crude: DOWN 1.1 percent at $72.11 per barrelburs-rl/

Global stocks mostly moved higher Monday as investors waited to see if a so-called Santa Claus rally sweeps over the market.Global stock markets had a tumultuous time last week, spiralling lower after the US Federal Reserve signalled fewer interest rate cuts than had been expected for 2025.But it ended on a positive note as traders welcomed below-forecast US inflation data that raised hopes about the health of the world’s biggest economy.US inflation data for November came in lower than expected, providing some optimism that policymakers were winning the battle against rising prices and would have room to keep cutting rates.That helped Asian markets move higher on Monday, but European markets wobbled, while Wall Street was mixed at the open of trading.”This week is expected by many to be a rebound week,” said Briefing.com analyst Patrick O’Hare.”That expectation is rooted in the understanding that the last five trading days of the year and the first two trading days of the new year are typically accented with a positive bias,” he added.Known as a Santa Claus rally, there are various explanations for the phenomenon including seasonal optimism and end-of-year tax considerations. Sentiment was boosted by news that US lawmakers had reached a deal over the weekend to avert a Christmas-time government shutdown.Still, there remains some trepidation among investors as Donald Trump prepares to return to the White House, pledging to cut taxes, slash regulations and impose tariffs on imports, which some economists warn could reignite inflation.”The initial response to the US election was positive as investors focused on the obvious tailwinds to profitability: lower corporate tax rates and less regulation,” said Ronald Temple, chief market strategist at Lazard. “However, I expect much more dispersion within the equity market when the reality of a much-less-friendly trade environment sets in.”In Europe, the FTSE 100 moved higher as the pound slid following data that showed that the UK economy stagnated in the third quarter, revised down from initial estimates of 0.1 percent growth. “The economy stood still between July and September, and that was before the budget cast another chill, and caused output to shrink in October,” said Susannah Streeter, head of money and markets at Hargreaves. Official data out of Spain on Monday showed that the Spanish economy grew 0.8 percent in the third quarter as domestic consumption and exports increased, comfortably outstripping the European Union average.In company news, shares in crisis-hit German auto giant Volkswagen lost more than four percent on the back of news Friday that it plans to axe 35,000 jobs by 2030 in a drastic cost-cutting plan.Shares in Japanese auto giant Honda rose over three percent after it announced Monday an agreement to launch merger talks with struggling compatriot Nissan that could create the world’s third largest automaker.- Key figures around 1430 GMT -New York – Dow: DOWN 0.1 percent at 42,786.80 pointsNew York – S&P 500: UP 0.2 percent at 5,941.59New York – Nasdaq Composite: UP 0.5 percent at 19,659.50London – FTSE 100: UP 0.3 percent at 8,104.86 Paris – CAC 40: FLAT at 7,273.45Frankfurt – DAX: FLAT at 19,880.03Tokyo – Nikkei 225: UP 1.2 percent at 39,161.34 (close)Hong Kong – Hang Seng Index: UP 0.8 percent at 19,883.13 (close)Shanghai – Composite: DOWN 0.5 percent at 3,351.26 (close)Euro/dollar: DOWN at $1.0402 from $1.0431 on FridayPound/dollar: DOWN at $1.2532 from $1.2567Dollar/yen: UP at 157.08 yen from 156.45 yen Euro/pound: UP at 83.01 pence from 82.98 penceWest Texas Intermediate: DOWN 0.2 percent at $69.30 per barrelBrent North Sea Crude: DOWN 0.4 percent at $72.68 per barrelburs-rl/gv

Global stock markets mostly edged higher on Monday as traders welcomed below-forecast US inflation data that raised hopes about the health of the world’s biggest economy.A holiday-thinned week got off to a healthy start after last week’s sell-off sparked by the US central bank signalling fewer interest rate cuts than had been expected for 2025. Asian markets followed a strong lead from Wall Street, which rebounded on Friday on the inflation datat, with Tokyo and Hong Kong in the green. Shanghai was the sole decliner.European markets struggled for direction, with London edging up and Paris and Frankfurt remaining flat.Sharp losses last week were pared back after US inflation data for November came in lower than expected, providing some optimism that policymakers were winning the battle against prices and would have room to keep cutting rates.Still, there remains some trepidation among investors as Donald Trump prepares to return to the White House, pledging to cut taxes, slash regulations and impose tariffs on imports, which some economists warn could reignite inflation.”The initial response to the US election was positive as investors focused on the obvious tailwinds to profitability: lower corporate tax rates and less regulation,” said Ronald Temple, chief market strategist at Lazard. “However, I expect much more dispersion within the equity market when the reality of a much-less-friendly trade environment sets in.”Investors were also cheered by news that US lawmakers had reached a deal to avert a Christmastime government shutdown following marathon talks on Friday.In the UK, the government was dealt a fresh blow after official data showed that the economy stagnated in the third quarter, revised down from inital estimates of 0.1 percent growth. “The economy stood still between July and September, and that was before the budget cast another chill, and caused output to shrink in October,” said Susannah Streeter, head of money and markets at Hargreaves. Official data out of Spain on Monday showed that the Spanish economy grew 0.8 percent in the third quarter as domestic consumption and exports increased, comfortably outstripping the European Union average.In company news, shares in crisis-hit German auto giant Volkswagen lost around two percent on the back of news Friday that it plans to axe 35,000 jobs by 2030 in a drastic cost-cutting plan.Shares in Japanese auto giant Honda rose over three percent after it announced Monday an agreement to launch merger talks with struggling compatriot Nissan that could create the world’s third largest automaker.- Key figures around 1100 GMT -London – FTSE 100: UP 0.1 percent at 8,090.68 pointsParis – CAC 40: FLAT at 7,274.85Frankfurt – DAX: FLAT at 19,881.63Tokyo – Nikkei 225: UP 1.2 percent at 39,161.34 (close)Hong Kong – Hang Seng Index: UP 0.8 percent at 19,883.13 (close)Shanghai – Composite: DOWN 0.5 percent at 3,351.26 (close)New York – Dow: UP 1.2 percent at 42,840.26 (close)Euro/dollar: DOWN at $1.0395 from $1.0431 on FridayPound/dollar: DOWN at $1.2543 from $1.2567Dollar/yen: UP at 156.79 yen from 156.45 yen Euro/pound: DOWN at 82.83 pence from 82.98 penceWest Texas Intermediate: DOWN 0.4 percent at $69.20 per barrelBrent North Sea Crude: DOWN 0.4 percent at $72.66 per barrel

Japanese auto giant Honda and its struggling rival Nissan agreed Monday to launch talks on a merger seen as a bid to catch up with Chinese rivals and Tesla on electric vehicles.Their collaboration would create the world’s third largest automaker, expanding development of EVs and self-driving tech.But Honda’s CEO insisted that it was not a bailout for Nissan, who last month announced thousands of job cuts and reported a 93 percent plunge in first-half net profit.”This is not a rescue,” Toshihiro Mibe told reporters, stressing that one condition for the merger would be for Nissan to complete its so-called “turnaround” plan.Lacklustre consumer spending and stiff competition in several markets is making life hard for many automakers.Business has been especially tough for foreign brands in China, where electric vehicle manufacturers such as BYD are leading the way as demand grows for less polluting vehicles.The two firms along with Mitsubishi Motors said they had signed a memorandum of understanding to start discussions on integrating their business under a new holding company.Citing “dramatic changes in the environment surrounding both companies and the automotive industry”, a joint statement said the companies planned to list the holding company on the Tokyo Stock Exchange in August 2026.It comes after reports said Taiwanese electronics behemoth Foxconn had unsuccessfully approached Nissan to acquire a majority share. It then asked Renault to sell its 35 percent stake in Nissan — a pursuit now said to have been put on hold.- Unequal marriage -China overtook Japan as the biggest vehicle exporter last year, helped by government support for EVs.Honda and Nissan — Japan’s number two and three automakers after Toyota — already agreed in March to explore a strategic partnership on software and components for EVs among other technologies.This partnership was joined by Mitsubishi Motors in August.The companies want to seal their merger deal in June next year, but it is unlikely to be a marriage of equals.Honda will nominate the president of the new holding company, whose board will be mostly made up of Honda executives, their statement said.Nissan is a majority shareholder of Mitsubishi Motors, which “aims to reach its conclusion by the end of January 2025 on the participation or involvement in the business integration between Nissan and Honda,” it added.Honda and Nissan’s partnership could include a manufacturing tie-up where they build vehicles at each other’s plants, local media said.- ‘Panic mode’ -Nissan chief Makoto Uchida praised Honda’s agility and ability to adapt as the industry shifts, praising the company as “a partner who can share the sense of crisis about the future”.”As the business environment for automakers changes in the future, I believe we will not be able to get there unless we have the courage to change ourselves,” Uchida said.Nissan has weathered a turbulent decade, including the 2018 arrest of former boss Carlos Ghosn, who later jumped bail and fled Japan concealed in a music equipment box.Ghosn told reporters in Tokyo on Monday via video link from Lebanon, where he is at large, that turning to its arch-rival Honda showed that Nissan was in “panic mode”.Although the two companies might be able to “find synergies for the future… I don’t see anything obvious into this partnership or this alliance”, Ghosn said. 

Asian markets rose Monday after big gains on Wall Street, with traders welcoming below-forecast US inflation data that tempered worries that the Federal Reserve will take a more hawkish tone with interest rates next year.A holiday-thinned week got off to a healthy start after last week’s sell-off sparked by the US central bank’s outlook that suggested officials will not lower borrowing costs as much as previously hoped over the next 12 months. Sharp losses in reaction to the forecasts were pared after data showed the personal consumption expenditures (PCE) index, the Fed’s preferred gauge of inflation, came in at 2.4 percent on-year in November.While the reading was up slightly from October, it was lower than expected, providing some optimism that policymakers were winning the battle against prices and would have room to keep cutting rates.The figures led to a pullback in US Treasury bond yields that had jumped last week to their highest levels since May, helped by comments from Chicago Fed chief Austan Goolsbee, who expressed confidence that inflation was returning to the bank’s two percent target.Still, there remains some trepidation among investors as Donald Trump prepares to return to the White House, pledging to cut taxes, slash regulations and impose tariffs on imports, which some economists warn could reignite inflation.Ronald Temple, chief market strategist at Lazard, said in a commentary: “The initial response to the US election was positive as investors focused on the obvious tailwinds to profitability: lower corporate tax rates and less regulation. “However, I expect much more dispersion within the equity market when the reality of a much-less-friendly trade environment sets in.”All three main indexes in New York ended more than one percent higher.Asia followed suit, with Tokyo, Hong Kong, Sydney, Singapore, Seoul, Taipei, Mumbai, Bangkok and Manila all in the green. Shanghai was the sole decliner.London, Frankfurt and Paris were all lower in early European trade.The dollar also held losses suffered in the wake of the PCE data, with the yen, pound and euro all stronger than Thursday.Investors were also cheered by news that US lawmakers had reached a deal to avert a Christmastime government shutdown following marathon talks on Friday.The last-minute scramble came after Trump and billionaire Elon Musk pressured Republicans to abandon an earlier bipartisan funding compromise. Lawmakers then spent several days trying to hammer out another deal, with massive halts to government services hanging in the balance.Non-essential operations would have ground to a halt if no deal had been struck, with up to 875,000 workers furloughed and 1.4 million more required to work without pay.”This agreement represents a compromise, which means neither side got everything it wanted,” President Joe Biden said on signing the bill on Saturday.”But it rejects the accelerated pathway to a tax cut for billionaires that Republicans sought.”- Key figures around 0900 GMT -Tokyo – Nikkei 225: UP 1.2 percent at 39,161.34 (close)Hong Kong – Hang Seng Index: UP 0.8 percent at 19,883.13 (close)Shanghai – Composite: DOWN 0.5 percent at 3,351.26 (close)London – FTSE 100: DOWN 0.2 percent at 8,065.68Euro/dollar: DOWN at $1.0419 from $1.0431 on FridayPound/dollar: UP at $1.2576 from $1.2567Dollar/yen: UP at 156.52 yen from 156.45 yen Euro/pound: DOWN at 82.85 pence from 82.98 penceWest Texas Intermediate: UP 0.5 percent at $69.78 per barrelBrent North Sea Crude: UP 0.4 percent at $73.24 per barrelNew York – Dow: UP 1.2 percent at 42,840.26 (close)London – FTSE 100: DOWN 0.3 percent at 8,084.61 (close)

Honda and Nissan were poised Monday to announce the start of talks on a merger to help the Japanese giants catch up with Chinese rivals and Tesla on electric vehicles.Their collaboration would create the world’s third largest automaker, expanding development of EVs and self-driving tech while coming to the rescue of struggling Nissan.The pair have not released any details publicly but it was widely reported in Japanese media that they would sign a memorandum of understanding on Monday afternoon.Honda and Nissan — Japan’s number two and three automakers after Toyota — are aiming to finalise a merger deal in June 2025, several media outlets said.Mitsubishi Motors, which could join the new holding company early next year, is also expected to take part in Monday’s announcement, after Honda and Nissan hold board meetings.In the morning, the presidents of Honda, Nissan and Mitsubishi Motors told the industry and transport ministries of their plan to start negotiations, Kyodo News reported.Honda and Nissan’s partnership could include a manufacturing tie-up where they build vehicles at each other’s plants, Kyodo said, citing sources close to the matter.Lacklustre consumer spending and stiff competition in several markets is making life hard for many automakers.Business has been especially tough for foreign brands in China, where electric vehicle manufacturers such as BYD are leading the way as demand grows for less polluting vehicles.China overtook Japan as the biggest vehicle exporter last year, helped by government support for EVs.”We hope Japanese companies will take steps to respond to these changes and take measures to survive and win amid international competition,” top government spokesman Yoshimasa Hayashi said Monday.He declined to comment on the merger reports but highlighted the “importance of strengthening competitiveness in areas such as… batteries and in-vehicle software”.Debt-laden Nissan last month announced thousands of job cuts as it reported a 93 percent plunge in first-half net profit, making a merger with Honda welcome news.But Taiwanese electronics manufacturer Foxconn has also reportedly sensed an opportunity.Foxconn, which builds devices for tech companies including Apple’s iPhones, first unsuccessfully approached Nissan with a bid to acquire a majority stake, according to Bloomberg.Then a Taiwanese media outlet said Foxconn’s Jun Seki — a former Nissan executive — had visited France to ask Renault to sell its 35 percent share of Nissan, although reports later said this pursuit had been put on pause.Honda and Nissan had already agreed in March to explore a strategic partnership on software and components for EVs among other technologies.This partnership was joined in August by Mitsubishi Motors, of which Nissan is a majority shareholder.Nissan has weathered a turbulent decade, including the 2018 arrest of former boss Carlos Ghosn, who later jumped bail and fled Japan concealed in a music equipment box.Kyodo said that Honda would ask Nissan to achieve a “V-shaped recovery” in performance as a condition for the merger.