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After travelling to Tokyo for meetings, Yoshiki Kojima’s IT company employees crash out in a capsule hotel, as a tourism boom makes regular rooms too pricey for business trips.A weak yen is attracting more visitors than ever to Japan, with national tourism figures released Wednesday showing a new record of an estimated 36.8 million arrivals last year.But that is also raising prices for Kojima’s staff and other Japanese business travellers.Capsule hotels, a Japanese institution, offer claustrophobic bed-sized pods, often double-stacked in rows.They have a “shabby” reputation, Kojima said, so he found a more comfortable establishment that boasts high-end mattresses and a TV in each capsule.”It’s clean, convenient and has a traditional shared bath house. My employees say it’s fun,” he told AFP.A night in a standard capsule there starts at 5,000 yen ($30) — but its rates are rising, according to Kojima.It is still cheaper than a basic private room at a business hotel, which in the Japanese capital cost 20,048 yen ($130) on average in November.That’s up from the pre-pandemic peak of 12,926 yen ($80 at today’s rates) in April 2019, shows research by Tokyo Hotel Kai, a group of around 200 hotels.”I’m happy there are so many visitors to Japan, but I’m agonising every day about finding a flexible way” to run the business, said Kojima, who needs to bring around 20 to 30 employees to the capital for company-wide meetings.- ‘What do I do?’ -The Japanese economy benefits from the surge in foreign tourists because it creates jobs and the visitors spend money, analyst Takuto Yasuda of NLI Research Institute said.”But it has a negative impact as well, such as Japanese people not being able to travel, or their daily lives being affected by overtourism,” he told AFP.Japan’s chronic labour shortages and an increase in hotel supply costs are also pushing up the fees, he added.Keisuke Morimoto, who runs a kimono shop in Japan’s western Nara region, was shocked when he learned a two-night stay at a Tokyo hotel would cost him 60,000 yen. “Seriously, what do I do for the hotel for my business trip?” he wrote X.Morimoto told AFP he is thinking of using short-term rental platform Airbnb, which has cheaper options.Some tourist spots are fighting back against overtourism, including the ancient capital of Kyoto, where residents have complained of visitors harassing the city’s famed geisha.Now Kyoto plans to hike its accommodation taxes, including by up to 10 times for top-end hotels, the mayor said Tuesday.- Concentrated demand -Japan wants to welcome 60 million visitors a year by 2030.This could mean even more expensive domestic business trips to Tokyo, Osaka and major cities, where demand for hotel bookings has spiked thanks to crowds of first-time visitors.The number of foreign visitors to Tokyo has doubled since 2019, and was up 1.5 times in Osaka, government data show.To even things out, the government wants tourists to visit lesser-known destinations, encouraging them to stay at least two nights in rural towns.Yasuda agrees that funnelling visitors elsewhere is key to easing pressure on city hotels.The occupancy rate in 2024 for business hotels in Tokyo run by major operator Fujita Kanko was 88 percent, and average rates were up 26 percent from last year, the company said.”Currently, demand is concentrated in major cities such as Tokyo and Osaka, so we are hoping that this will spread to Sapporo, Naha and other smaller regions,” the firm said.IT company boss Kojima may resort to drastic measures.”I’m thinking of moving our headquarters to Sapporo, or organising a meeting in a hot spring town near Tokyo,” he said.”There are many areas that aren’t flooded with tourists, and we can take advantage of that.”

Beijing on Wednesday said it “firmly opposes” a US move to effectively bar Chinese technology from smart cars in the American market, saying alleged risks to national security were “without any factual basis”.”Such actions disrupt economic and commercial cooperation between enterprises… and represent typical protectionism and economic coercion,” foreign ministry spokesman Guo Jiakun said, adding: “China firmly opposes this.”Tuesday’s announcement in the United States, which also pertains to Russian technology, came as outgoing President Joe Biden wrapped up efforts to step up curbs on China, and after a months-long regulatory process.The rule follows an announcement this month that Washington is mulling new restrictions to address risks posed by drones with tech from adversaries such as China and Russia.US Commerce Secretary Gina Raimondo said that modern vehicles contain cameras, microphones, GPS tracking and other technologies connected to the internet.”Cars today aren’t just steel on wheels — they’re computers,” she said.”This is a targeted approach to ensure we keep PRC and Russian-manufactured technologies off American roads,” she added, referring to the People’s Republic of China.But Guo slammed the move, telling journalists in Beijing that China would “take necessary measures” to safeguard its legitimate rights and interests.”What I want to say is that the US, citing so-called national security, has restricted the use of Chinese connected vehicle software, hardware, and entire vehicles in the United States without any factual basis,” he told a regular press conference.”China urges the US to stop the erroneous practice of overgeneralising national security and to stop its unreasonable suppression of Chinese companies.”- ‘Trying to dominate’ -The final US rule currently applies just to passenger vehicles under 10,001 pounds (about 4.5 tonnes), the Commerce Department said.It plans, however, to issue separate rulemaking aimed at tech in commercial vehicles like trucks and buses “in the near future”.For now, Chinese electric vehicle manufacturer BYD, for example, has a facility in California producing buses and other vehicles.National Economic Advisor Lael Brainard added that “China is trying to dominate the future of the auto industry”.But she said connected vehicles containing software and hardware systems linked to foreign rivals could result in misuse of sensitive data or interference.Under the latest rule, even if a passenger car were US-made, manufacturers with “a sufficient nexus” to China or Russia would not be allowed to sell such new vehicles incorporating hardware and software for external connectivity and autonomous driving.This prohibition on sales takes effect for model year 2027, and also bans the import of the hardware and software if they are linked to Beijing or Moscow.

Stock markets were mixed Wednesday as traders assess the economic outlook ahead of Donald Trump returning to the White House next week, with focus now on the release of key US inflation data.A below-forecast read on wholesale prices provided a little relief and helped the Dow and S&P 500 end in the green, though sentiment remains clouded by a resignation to the idea that the Federal Reserve will not cut interest rates as much as hoped this year.Blockbuster employment figures on Friday, which followed a better-than-expected read on job openings, reinforced the view that the world’s top economy and labour market were still in rude health.That came after the central bank in December indicated in its so-called “dot plot” that it would likely only cut rates twice in 2025, compared with four previously flagged — taking the wind out of the sails of a market rally at the end of the year.Investors will be poring over the consumer price index later Wednesday, with analysts warning that a strong reading could even stoke talk of a possible rate hike as the Fed’s next move.SWBC’s Christopher Brigati wrote in a commentary: “Even prior to the release of the dot plot in December, we’ve been cautious about the increasing possibility that the Fed would have to dial back further rate cuts in 2025, calling for no cuts during the year.”It appears that there is growing sentiment that the Fed will be less accommodating going forward. Furthermore, it is appearing increasingly likely that the Fed’s rate-cutting efforts beginning in September may have been premature, given more recent economic data.”After Wall Street’s broadly positive lead, Asian markets fluctuated.Tokyo slipped though games giant Nintendo piled on more than two percent and briefly hit a record high as traders anticipate it will soon release its much-anticipated Switch 2 console. The Nikkei 225’s drop also came as the yen strengthened, with traders weighing the chances of a rate hike by the Bank of Japan this month.Shanghai, Sydney, Seoul, Singapore and Taipei also fell, while Hong Kong, Wellington, Manila, Mumbai, Bangkok and Jakarta rose.London rose as data showed UK inflation eased last month, whille Paris and Frankfurt were also on the front foot.Also in focus this week is the release of Chinese 2024 growth data, with expectations that it could come in below the previous year and be among the slowest in more than three decades.Leaders have unveiled a string of measures to reignite the economy, with a particular emphasis on consumers and the troubled property sector, though there are fears the return of Trump could see another painful China-US trade war.The president-elect has already warned he will impose tariffs of as much as 60 percent on imports from the country, and observers say Beijing has likely kept its powder dry with regards stimulus as it prepares for the next four years.”China’s policy response will likely remain reactive but responsive in nature, to defend against any significant downside risks. The long-term economic transition to a more sustainable model of growth remains intact,” said Peiqian Liu, Asia economist at Fidelity International.”We expect more details on China’s strategic growth plans to be unveiled in its 15th Five Year Plan in 2025.”- Key figures around 0815 GMT -Tokyo – Nikkei 225: DOWN 0.1 percent at 38,444.58 (close)Hong Kong – Hang Seng Index: UP 0.3 percent at 19,286.07 (close)Shanghai – Composite: DOWN 0.4 percent at 3,227.12 (close)London – FTSE 100: UP 0.5 percent at 8,242.82Euro/dollar: DOWN at $1.0307 from $1.0310 on TuesdayPound/dollar: UP at $1.2233 from $1.2211Dollar/yen: DOWN at 156.89 yen from 157.98 yenEuro/pound: DOWN at 84.27 pence from 84.40 penceWest Texas Intermediate: UP 0.9 percent at $78.19 per barrelBrent North Sea Crude: UP 0.7 percent at $80.48 per barrelNew York – Dow: UP 0.5 percent at 42,518.28 (close)

One rocket, two missions: lunar landers built by US and Japanese companies launched their “rideshare” to the Moon on Wednesday, showcasing the private sector’s growing role in space exploration.On board the SpaceX Falcon 9 rocket that took off from the Kennedy Space Center in Florida were Firefly Aerospace’s Blue Ghost and ispace’s Resilience from Japan, which will also deploy a micro rover.Both uncrewed missions aim to build on the success of Texas-based Intuitive Machines, which last year became the first company to successfully touch down on Earth’s celestial neighbor.Until recently, soft landings on the Moon were achieved only by a handful of well-funded national space agencies, starting with the Soviet Union in 1966.Now, however, several emerging US companies are attempting to replicate this feat under NASA’s experimental Commercial Lunar Payload Services program, designed to cut costs and stimulate a lunar economy.The US plans to establish a sustained human presence on the Moon later this decade under the Artemis program, leveraging commercial partners to deliver critical hardware at a fraction of the cost of government-led missions.”Each milestone we complete will provide valuable data for future missions and ultimately keep the United States and our international partners at the forefront of space exploration,” Firefly Aerospace CEO Jason Kim said Tuesday.”Firefly is a go for launch. Let’s go ghost riders in the sky!”- Staying upright -On the Japanese side, Tokyo-based ispace’s first attempt to land on the Moon ended in an unsalvageable “hard landing” in April 2023.”It’s important to challenge ourselves again, after enduring failure and learning from it,” ispace founder and CEO Takeshi Hakamada said last week.”Today, we’re going back to the Moon,” a post on the ispace X account said Wednesday, adding in a promotional video: “Today, we prove our resilience”.Blue Ghost is stacked atop Resilience inside the Falcon 9, SpaceX executive Julianna Scheiman said, and will be deployed first, followed by Resilience nearly 30 minutes later.The two spacecraft have different timelines for reaching the Moon.Blue Ghost aims to complete its journey in 45 days, gradually lifting its orbit around Earth before entering lunar orbit and touching down near Mons Latreille, a volcanic feature in Mare Crisium on the Moon’s northeast near side.”With 10 NASA instruments on this flight, we’re conducting scientific investigations… from characterizing Earth’s magnetosphere to understanding lunar dust and the Moon’s interior structure and thermal properties,” NASA scientist Maria Banks said.Blue Ghost also carries technology demonstrations focused on navigation and computing in the Moon’s harsh radiation environment.- ‘Moonhouse’ art -Meanwhile, Resilience will take four to five months to reach its destination in Mare Frigoris, on the Moon’s far north.Its payloads include scientific instruments, but the centerpiece is Tenacious, a micro rover developed by ispace-Europe, a Luxembourg-based subsidiary. The four-wheeled robot features a high-definition camera and will attempt to scoop up regolith — the Moon’s loose surface material.It also carries on its front a small red “Moonhouse” created by Swedish artist Mikael Genberg.These ambitious goals hinge on achieving a successful soft landing — a task fraught with challenges.Spacecraft must navigate treacherous boulders and craters and, in the absence of an atmosphere to support parachutes, rely entirely on thrusters for a controlled descent.A final hurdle, as recent missions have shown, is remaining upright.When Intuitive Machines’ Odysseus landed in April 2024, it tipped over, limiting the investigations it could perform.Similarly, Japan’s SLIM lander, which touched down in March 2024, landed at a wonky angle, leaving its solar panels poorly positioned, similarly curtailing its operational lifespan.

Record numbers of tourists flocked to Japan last year, figures showed Wednesday, as the weak yen bolstered the appeal of the “bucket list” destination despite overcrowding complaints in hotspots like Kyoto.The country logged more than 36.8 million tourist arrivals in 2024, topping 2019’s record of nearly 32 million, according to estimates from the Japan National Tourism Organization.It marks a return to a boom that began over a decade ago before being interrupted by the Covid-19 pandemic, with numbers up more than four-fold from 2012.That is partly thanks to government policies to promote attractions from Mount Fuji’s majestic slopes to shrines and sushi bars in more far-flung parts of the archipelago.Another factor is the cheap yen, which has plunged against other currencies over the past three years, making everything from a bowl of ramen to a handmade Japanese kitchen knife more affordable.Japan has long been a “bucket list” destination for many people, said Naomi Mano, president of hospitality and events company Luxurique.But it’s “prime time because at the moment it’s like Japan is on a 30 percent off sale”, Mano told AFP.- Double trouble? -The government has set an ambitious target of almost doubling tourist numbers to 60 million annually by 2030.Authorities say they want to spread sightseers more evenly around the country, and to avoid a bottleneck of visitors eager to snap spring cherry blossoms or vivid autumn colours.But as in other global tourist magnets like Venice in Italy, there has been growing pushback from residents in destinations such as the ancient capital of Kyoto.The tradition-steeped city, just a couple of hours from Tokyo on the bullet train, is famed for its kimono-clad geisha performers and increasingly crowded Buddhist temples.Locals have complained of disrespectful tourists harassing the geisha in a frenzy for photos, as well as causing traffic congestion and littering.In a bid to improve the situation — and cash in — Kyoto on Tuesday announced plans to hike lodging taxes “to realise ‘sustainable tourism’ with a high level of satisfaction for citizens, tourists and businesses”.”If there’s a burden on the infrastructure, I do think taxing tourists is a good idea” but Kyoto must find the “right balance”, Australian tourist Larry Cooke, 21, told AFP.- Capsule executives -Exasperated officials have also taken steps elsewhere, including introducing an entry fee and a daily cap on the number of hikers climbing Mount Fuji.Last year a barrier was briefly erected outside a convenience store to stop people standing in the road to photograph a view of the snow-capped volcano that had gone viral.Some Japanese companies say they can no longer afford hotels in Tokyo and other major cities, as the high demand from tourists pushes up prices.Several managers told AFP they are seeking cheaper alternatives, from Airbnb lets to Japan’s famously claustrophobic capsule hotels.IT company chief Yoshiki Kojima told AFP that he had chosen one with slightly more comfortable bed-sized pods that his employees had liked.”It’s clean, convenient and has a traditional shared bath house. My employees say it’s fun,” Kojima said.- Economy -The economic benefits are clear, however, with experts noting that tourism is now second only to vehicle exports in terms of earnings.Japan, population 124 million, still receives far fewer tourists than top destination France, which has a population of 68 million and welcomed 100 million visitors in 2023.So its overtourism woes are mainly because the influx “is centred around specific cities”, Luxurique’s Mano said.For example, the number of foreign visitors to Tokyo has doubled since 2019, and was up 1.5 times in Osaka.But Mano thinks the government can take steps to change this by promoting other parts of Japan and “making it easier to access — having more information available, being able to book activities in other rural areas.”

Asian markets swung Wednesday, continuing their yo-yo start to the year as traders assess the economic outlook with Donald Trump back in the White House, with focus now on the release of key US inflation data.A below-forecast read on wholesale prices provided a little relief and helped the Dow and S&P 500 end in the green, though sentiment remains clouded by a resignation to the idea that the Federal Reserve will not cut interest rates as much as hoped this year.Blockbuster employment figures on Friday, which followed a better-than-expected read on job openings, reinforced the view that the world’s top economy and labour market were still in rude health.That came after the central bank in December indicated in its so-called “dot plot” that it would likely only cut rates twice in 2025, compared with four previously flagged — taking the wind out the sails of a market rally at the end of the year.Investors will be poring over the consumer price index later Wednesday, with analysts warning that a strong reading could even stoke talk of a possible rate hike as the Fed’s next move.SWBC’s Christopher Brigati wrote in a commentary: “Even prior to the release of the dot plot in December, we’ve been cautious about the increasing possibility that the Fed would have to dial back further rate cuts in 2025, calling for no cuts during the year.”It appears that there is growing sentiment that the Fed will be less accommodating going forward. Furthermore, it is appearing increasingly likely that the Fed’s rate-cutting efforts beginning in September may have been premature, given more recent economic data.”After Wall Street’s broadly positive lead, Asian markets fluctuated.Tokyo, Sydney, Seoul, Wellington and Manila rose, while Hong Kong, Shanghai and Taipei fell.Also in focus this week is the release of Chinese 2024 growth data, with expectations that it could come in below the previous year and be among the slowest in more than three decades.Leaders have unveiled a string of measures to reignite the economy, with a particular emphasis on consumers and the troubled property sector, though there are fears the return of Trump could see another painful China-US trade war.The president-elect has already warned he will impose tariffs of as much as 60 percent on imports from the country, and observers say Beijing has likely kept its powder dry with regards stimulus as it prepares for the next four years.”China’s policy response will likely remain reactive but responsive in nature, to defend against any significant downside risks. The long-term economic transition to a more sustainable model of growth remains intact,” said Peiqian Liu, Asia economist at Fidelity International.”We expect more details on China’s strategic growth plans to be unveiled in its 15th Five Year Plan in 2025.”- Key figures around 0230 GMT -Tokyo – Nikkei 225: UP 0.4 percent at 38,628.61 (break)Hong Kong – Hang Seng Index: DOWN 0.2 percent at 19,178.20Shanghai – Composite: DOWN 0.2 percent at 3,234.90Euro/dollar: DOWN at $1.0300 from $1.0310 on TuesdayPound/dollar: DOWN at $1.2197 from $1.2211Dollar/yen: DOWN at 157.90 yen from 157.98 yenEuro/pound: UP at 84.44 pence from 84.40 penceWest Texas Intermediate: UP 0.2 percent at $77.63 per barrelBrent North Sea Crude: UP 0.1 percent at $79.99 per barrelNew York – Dow: UP 0.5 percent at 42,518.28 (close)London – FTSE 100: DOWN 0.3 percent at 8,201.54 (close)

China might not be able to rely on trade to steer it out of trouble as blistering tariffs being considered by US President-elect Donald Trump threaten an already struggling economy.Exports have historically represented a key engine in the world’s number two economy, where authorities will release 2024 growth data on Friday that is expected to be among the lowest in decades.Worse still, Trump’s return to the White House three days later could mean that Beijing won’t be able to rely on trade to drive activity in 2025.Exports “are likely to stay resilient in the near-term”, wrote Zichun Huang of Capital Economics, noting that a recent surge was due in part to US importers stockpiling Chinese goods ahead of expected tariff hikes.”But outbound shipments will weaken later this year if Trump follows through on his threat to impose 60 percent tariffs on all Chinese goods,” she said.China’s economy likely grew 4.9 percent last year, according to an AFP survey of experts, fractionally short of the government’s five percent target and down from 5.2 percent in 2023.The increase — already the lowest in decades, apart from the Covid-19 pandemic — was helped by a record-setting year for Chinese exports.Overseas shipments reached a historic high of nearly $3.5 trillion in 2024, up 7.1 percent year-on-year, according to official statistics published on Monday.Adjusted for inflation, China’s trade surplus last year “outstripped any global surplus seen in the past century, overshadowing even the historical export powerhouses like Germany, Japan or the United States post-World War II”, wrote Stephen Innes of SPI Asset Management in a note.The increase in China’s trade surplus has contributed five to six points to the growth of the country’s gross domestic product over the past three years, Francois Chimits of the Mercator Institute for China Studies told AFP.”The vitality of foreign trade has been one of the lifelines of the Chinese economy,” he said.- Policy support -That pillar of growth could come under attack in 2025, as the United States and European countries retaliate against what they call unfair competition resulting from China’s generous subsidies to its manufacturers.The European Union imposed additional customs duties in October on electric vehicles imported from China, citing distortionary trade practices by Beijing.And Trump promised during his recent US presidential campaign to slap even heftier tariffs on Chinese goods than those implemented in his first term.The specific trade imposts Trump intends to levy against China are not yet clear but the country’s export surge last year “will ignite further fury among US trade hawks”, Innes said.A potential 20 percent increase in US levies on Chinese goods would result in a 0.7-percentage-point hit to real GDP this year, according to a Goldman Sachs report.Beijing could allow the yuan to weaken in return, “pre-position” exports in third countries so that they can then be sent to the United States, or simply find new markets, Agatha Kratz of Rhodium Group told AFP.Some shifts are already palpable. China’s exports to Vietnam increased by nearly 18 percent last year, according to Chinese customs data, overtaking Japan to become its third-largest export destination.Domestically, Beijing is hoping to boost demand this year through a combination of fiscal and monetary policy easing and a scheme to spur consumption.The external pressure this year might necessitate even greater domestic policy support from Beijing, said Larry Hu, an economist at Macquarie Group.AFP’s survey of analysts warned that China’s growth rate could ease to just 4.4 percent this year and even drop below four percent in 2026.

China’s economic growth likely fell fractionally short of the government’s five percent target last year, according to an AFP survey, as leaders head into 2025 steeling for the second presidency of Donald Trump amid fears of another painful trade standoff.The reading would be the weakest the country has seen since 1990 — outside of the pandemic — as it struggles with weak domestic consumption and a protracted crisis in the once-booming property sector.The survey of economists by AFP estimated growth in the world’s number two economy hit 4.9 percent last year, down from the 5.2 percent recorded in 2023.They also warned it could ease to just 4.4 percent this year and even drop below four percent in 2026.The 2024 reading would be just shy of Beijing’s target of “around five percent” — reiterated by President Xi Jinping late last year — and likely “close enough for officials to claim success”, Harry Murphy Cruise from Moody’s Analytics told AFP.”But do not let that achievement fool you. Under the hood, the economy’s engine is struggling to get into gear,” he warned.However, Francois Chimits from the Mercator Institute for China Studies said the figure should be regarded with some scepticism as it is “often subject to strategic adjustments to reflect internal objectives”.China’s economy has so far failed to achieve a robust post-pandemic recovery as a prolonged real estate crisis spooks consumers and investors, while local governments grapple with soaring debt.Woes in the property sector are particularly concerning given the vital role it plays in fuelling growth, Chimits said.Friday’s report comes after data last week showed the country narrowly avoided slipping into deflation last month as consumers remain wary of pulling out their wallets.Beijing has recently unveiled some of the most aggressive measures in years aimed at boosting activity, including cuts to key interest rates, the easing of property purchase rules, hiking the debt ceiling for local governments and bolstering support for financial markets.- Trump 2.0 -Coupled with strong overseas demand for Chinese products — last year’s exports reached a historic high — the measures have contributed to a moderate rebound in the final quarter, experts told AFP.Without the measures, consumption would have been “much worse”, said Michelle Lam, an economist at Societe Generale.”Beijing has made some tweaks to support the buying of unsold properties by local governments,” Lam told AFP.”But the implementation has still been slow.”In one encouraging sign for the real estate sector, the total area of new residential property transactions in major cities increased 18 percent on-year in December, the finance ministry announced this month.Compounding the issues heading for Beijing is the return of Trump to the White House next week after he pledged during his campaign to impose tougher trade measures against China than those he unleashed during his first term.A hike in tariffs could batter Chinese exports — a key economic pillar made even more vital in the absence of vigorous domestic demand.A potential 20 percent increase in US levies on Chinese goods would result in a 0.7-percentage-point hit to real GDP this year, according to a Goldman Sachs report.In a move to shore up the economy in preparation for any possible headwinds, Beijing has announced a relaxation of fiscal policy in 2025 and a plan to boost consumption by subsidising the replacement of old household items.With exports facing greater uncertainty and the property sector stagnating, “officials need a new growth driver”, said Murphy Cruise.”Households could be that engine.”External pressure this year might necessitate even greater domestic policy support from Beijing, said Larry Hu, economist at Macquarie Group.That could represent a “paradigm shift, with domestic demand outpacing external demand” as it did in 2009-19, he wrote.Still, economists remain sceptical about the scale of upcoming stimulus measures, the details of which are unlikely to be revealed until China’s annual parliamentary session in March.”Officials will ramp up support, but it will not offset the pain of higher tariffs,” Murphy Cruise warned.

Stock markets moved in different directions Tuesday with traders’ attention fixed on President-elect Donald Trump’s tariff plans, earnings updates and inflation data.A report suggesting Trump could impose import tariffs more slowly than initially feared provided support and put a cap on the dollar’s latest surge.However, traders remain concerned that his pledges to cut taxes, regulations and immigration will revive inflation.Market watchers have slashed their expectations on how many times the Federal Reserve will cut interest rates through 2025 to one.But some fear the Fed’s next move could even be a rate hike owing to still-sticky inflation and concerns over Trump’s policies.Data on Tuesday showed US wholesale inflation for December was lower than expected, with no change in the Producer Price Index over the month when volatile food and energy prices are excluded. Wall Street’s three main indexes opened higher, but moved in a choppy fashion thereafter. The Dow and S&P 500 finished with modest gains, while the Nasdaq retreated.Investors will be paying more attention to US and UK consumer price inflation data due on Wednesday, while American bank earnings will also be in focus.Investors are especially keen to  hear the companies’ expectations for the incoming Trump administration in Washington. JPMorgan Chase and Goldman Sachs are among the companies reporting results.”There’s a lot of interest … in how they see the future,” Art Hogan of B. Riley Wealth Management said of expectations that Trump could ease bank regulation.In Europe, Frankfurt and Paris finished the day with gains but London slipped.In Asia, Hong Kong and Shanghai rallied as China’s securities regulator said it was looking at ways to provide more stability to markets.This followed another run of poor performances sparked by worries over the world-number-two economy and Trump’s threatened tariffs.The dollar traded mixed against major peers after Bloomberg reported that members of Trump’s team were looking at an initially limited increase in tariffs to boost their negotiating hand and tamper inflationary pressures.Oil prices pulled back following a series of gains.Among individual companies, Boeing fell 2.1 percent as the planemaker disclosed it had delivered just 348 commercial planes in 2024 following a labor strike and safety setbacks.Eli Lilly dropped 6.6 percent after it said 2024 revenues would be lower than previously thought.- Key figures around 2130 GMT -New York – Dow: UP 0.5 percent at 42,518.28 (close)New York – S&P: UP 0.1 percent at 5,842.91 (close)New York – Nasdaq Composite: DOWN 0.2 percent at 19,044.39 (close)London – FTSE 100: DOWN 0.3 percent at 8,201.54 (close)Paris – CAC 40: UP 0.2 percent at 7,423.67 (close)Frankfurt – DAX: UP 0.7 percent at 20,271.33 (close)Tokyo – Nikkei 225: DOWN 1.8 percent at 38,474.30 (close)Hong Kong – Hang Seng Index: UP 1.8 percent at 19,219.78 (close)Shanghai – Composite: UP 2.5 percent at 3,240.94 (close)Euro/dollar: UP at $1.0310 from $1.0245 on MondayPound/dollar: UP at $1.2211 from $1.2202Dollar/yen: UP at 157.98 yen from 157.48 yenEuro/pound: UP at 84.40 pence from 83.96 penceWest Texas Intermediate: DOWN 1.7 percent at $77.50 per barrelBrent North Sea Crude: DOWN 1.4 percent at $79.92 per barrelburs-jmb/des

Stock markets moved in different directions on Tuesday with traders’ attention fixed on President-elect Donald Trump’s tariff plans, earnings updates and inflation data.A report suggesting Trump could impose import tariffs more slowly than initially feared provided support and put a cap on the dollar’s latest surge.However, traders remain concerned that his pledges to cut taxes, regulations and immigration will revive inflation.Traders have slashed their expectations on how many times the Federal Reserve will cut interest rates through 2025 to one.But some fear the Fed’s next move could even be a rate hike owing to still-sticky inflation and concerns over Trump’s policies.Data on Tuesday showed US wholesale inflation for December was lower than expected, with no change in the Producer Price Index over the month when volatile food and energy prices are excluded. Wall Street’s three main indexes all opened higher, but failed to hold onto their early gains, with a rise in US bond yields dragging on sentiment.Investors will be paying more attention to US and UK consumer price inflation data due on Wednesday.”With rate expectations now the driving force behind market moves, key inflation data midweek will continue to shape the narrative for the early parts of 2025,” noted Matt Britzman, senior equity analyst at Hargreaves Lansdown.In Europe, Frankfurt and Paris finished the day with gains but London slipped.In Asia, Hong Kong and Shanghai rallied as China’s securities regulator said it was looking at ways to provide more stability to markets.This followed another run of poor performances sparked by worries over the world number two economy and Trump’s threatened tariffs.- Dollar mixed -The dollar traded mixed against major peers Tuesday after Bloomberg reported that members of Trump’s team were looking at an initially limited increase in tariffs to boost their negotiating hand and tamper inflationary pressures.Traders had been spooked when he said soon after his re-election that he would impose huge levies on China, Canada and Mexico as soon as he took office.The pound remained stuck close to lows not seen since the end of 2023. The euro was near its weakest since late 2022, with fears it could return to parity with the dollar.The yen edged up against the greenback as the yield of Japan’s 40-year government bond hit its highest since being launched in 2007, with debate returning to whether the country’s central bank will hike interest rates at next week’s policy meeting.Eyes were also on earnings. In London, shares in retailer JD Sports slumped 6.4 percent after it warned on profits. Energy giant BP shed 2.5 percent on a weak trading update, capping gains on the benchmark FTSE 100 index.On the upside, Paris was lifted by rising share prices of French banks. “This earnings season will set the tone for financial stocks in 2025, but the stakes are high,” said Charu Chanana, chief investment strategist at Saxo Markets.”Even with solid fourth-quarter results, the macro backdrop — characterised by lingering inflation concerns, steeper yields, and recalibrated Fed expectations — may weigh on sentiment.”- Key figures around 1630 GMT -New York – Dow: UP less than 0.1 percent at 42,335.87 pointsNew York – S&P: DOWN less than 0.1 percent at 5,834.16New York – Nasdaq Composite: DOWN less than 0.1 percent at 19,070.14London – FTSE 100: DOWN 0.3 percent at 8,201.54 (close)Paris – CAC 40: UP 0.2 percent at 7,423.67 (close)Frankfurt – DAX: UP 0.7 percent at 20,271.33 (close)Tokyo – Nikkei 225: DOWN 1.8 percent at 38,474.30 (close)Hong Kong – Hang Seng Index: UP 1.8 percent at 19,219.78 (close)Shanghai – Composite: UP 2.5 percent at 3,240.94 (close)Euro/dollar: UP at $1.0289 from $1.0224 on MondayPound/dollar: UP at $1.2195 from $1.2180Dollar/yen: UP at 158.05 yen from 157.65 yenEuro/pound: UP at 84.36 pence from 83.90 penceWest Texas Intermediate: DOWN 0.6 percent at $76.81 per barrelBrent North Sea Crude: DOWN 0.6 percent at $80.51 per barrelburs-rl/gv