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Japanese auto giants Honda and Nissan are in preliminary merger talks to help them compete against Tesla and Chinese electric vehicle makers, media reports said Wednesday.Shares in Nissan soared as much as 24 percent, while Honda dipped more three percent. Mitsubishi Motors — of which Nissan is the top shareholder — gained almost 20 percent.Japan’s number two and three automakers behind Toyota had already agreed in March to explore a strategic partnership on EVs.”We are discussing possibilities for cooperation… in a wide range of fields and in various areas, and those possibilities include the latest reports, but there is nothing decided,” a Honda spokesman told AFP on Wednesday.Nissan said: “The content of the report is not something that has been announced by either company… If there are any updates, we will inform our stakeholders at the appropriate time.”Major automakers the world over have been reeling from tough competition in EVs, in particular from Chinese competitors such as BYD.Volkswagen, for instance, is considering closing German factories for the first time in its history.Last month, Nissan announced 9,000 job cuts, slashed its sales forecasts and said it would reduce global production capacity by 20 percent.Warning of a “severe situation”, CEO Makoto Uchida said he would forfeit half his salary.Nissan has seen a turbulent decade that included an attempted major alliance with France’s Renault that saw its former boss Carlos Ghosn arrested in 2018.In Paris, shares in Renault, which owns a significant stake in Nissan, soared more than six percent on Wednesday.- Electric race -Bloomberg reported that an approach by Taiwan’s Foxconn — officially known as Hon Hai Precision Industry — to take a controlling stake in Nissan accelerated discussions with Honda.Foxconn, the world’s largest contract electronics manufacturer including for Apple, was not immediately available for comment.Honda and Nissan are considering operating under a holding company and will soon sign a memorandum of understanding, the Nikkei reported.Their respective stakes, as well as other details, will be decided later, and they also look to eventually bring Mitsubishi Motors under the holding company, the paper said.The Financial Times reported that the exploratory talks about a merger were at an early stage.There are, however, concerns about a possible political backlash since a merger could result in significant job cuts, the FT reported.Japanese television channel TBS reported that the companies could make an announcement as early as Monday.Honda is considering several options including a merger, capital tie-up or the establishment of a holding company, executive vice president Shinji Aoyama told Bloomberg.- Overtaken -China overtook Japan as the world’s biggest vehicle exporter in 2023, helped by its dominance in EVs, a sector where Japanese firms have lost ground by focusing on hybrid vehicles.Honda announced plans in May to double investment in electric vehicles to $65 billion by 2030, part of its ambitious target set three years ago of achieving 100 percent EV sales by 2040.Nissan has signalled similar ambitions.It said in March that 16 of the 30 new models it plans to launch over the next three years would be “electrified”.The world’s auto giants are increasingly prioritising electric and hybrid vehicles, with demand growing for less polluting models as concern about climate change grows.At the same time, however, there has been a slowdown in the EV market on the back of consumer concern about high prices, reliability, range and a lack of charging points.”From Nissan’s perspective, the possible merger would provide short-term relief for Nissan, which is under significant financial pressure,” Tatsuo Yoshida, Bloomberg Intelligence analyst, told AFP.”From Honda’s perspective, Honda is performing better financially, the benefits for Honda would be more long-term,” Yoshida said, adding, however, that agreeing on a deal would be “very difficult”.burs-stu/mtp

Asian markets swung Wednesday ahead of the Federal Reserve’s much-anticipated policy announcement, while shares in Japanese car titan Nissan soared more than 20 percent after reports said it was in merger talks with rival Honda.There were few catalysts to drive region-wide activity before the US central bank’s interest rate decision, with Wall Street providing a negative lead as profit-takers moved in while economic data was mixed.The Fed is widely expected to cut borrowing costs for the third successive time when it concludes its gathering later in the day but the main focus is on its statement, with traders hoping for guidance on its plans for next year.With inflation coming down but hovering above the two percent target and the labour market still robust, decision-makers have been able to loosen their grip on policy since September amid optimism they can guide the economy to a soft landing.However, with Donald Trump set to re-enter the White House next month, pledging tax cuts, deregulation and tariffs on imports from China, there are fears that prices could be reignited, forcing the Fed to re-evaluate its rates timetable.”We are experiencing a whirlwind of change and uncertainty that profoundly affects global economies,” said Stephen Innes of SPI Asset Management.”Questions loom: Will Donald Trump be a ‘Deal Maker in Chief’ or lean into his ‘Tariff Man’ persona? How will bond yields react? Can China effectively stimulate consumer demand? Will Trump broker peace in Eastern Europe? Will the dollar maintain its oppressive strength?”He added that “the crucial question is whether the Federal Reserve will signal a pause starting from the January (policy) meeting”.”My view leans toward an affirmative; the real intrigue, however, lies in how explicitly the Fed will beam this potential shift and confirm a ‘hawkish cut’.”While Wall Street fell, Asian markets diverged. Hong Kong, Shanghai, Seoul, Bangkok and Taipei rose but Sydney, Singapore, Wellington, Mumbai, Jakarta and Manila fell.London rose even as data showed UK inflation picked up in November, firming expectations the Bank of England will hold off cutting rates this week.Paris and Frankfurt were also both up.Tokyo closed down, although Nissan scorched 23.7 percent higher soon after opening in response to reports it was in preliminary merger talks with Honda, adding the move would help them better compete against Tesla and other electric vehicle makers.Neither firm confirmed the reports but they agreed in March to explore a strategic partnership on EVs, which analysts said was aimed at catching up with Chinese competitors.Nissan has been struggling, announcing 9,000 job cuts last month and slashing its annual sales forecast.The rise was the biggest since 1974, according to Bloomberg News.Honda fell about three percent, while Mitsubishi Motors — of which Nissan is the top stakeholder — gained 19.7 percent.On currency markets, the yen edged down against the dollar ahead of the Fed decision, while traders also awaited the conclusion of the Bank of Japan’s Thursday meeting as debate swirls about when it will hike rates.Bitcoin pared gains after earlier hitting a record of more than $108,315 on Wednesday.- Key figures around 0810 GMT -Tokyo – Nikkei 225: DOWN 0.7 percent at 39,081.71 (close)Hong Kong – Hang Seng Index: UP 0.8 percent at 19,864.55 (close)Shanghai – Composite: UP 0.6 percent at 3,382.21 (close)London – FTSE 100: UP 0.2 percent at 8.210,72Euro/dollar: DOWN at $1.0497 from $1.0498 TuesdayPound/dollar: DOWN at $1.2687 from $1.2707Dollar/yen: UP at 153.57 yen from 153.41 yen Euro/pound: UP at 82.74 pence from 82.52 penceWest Texas Intermediate: UP 0.5 percent at $70.45 per barrelBrent North Sea Crude: UP 0.5 percent at $73.52 per barrelNew York – Dow: DOWN 0.6 percent at 43,449.90 (close)

Shares in Japanese chipmaker Kioxia closed 10 percent higher in Tokyo on Wednesday after an initial public offering that valued the firm at more than $5 billion.Formerly the semiconductor unit of Japanese engineering giant Toshiba, the firm is the world’s third-largest producer of NAND flash memory chips.It was acquired by US investment firm Bain Capital in 2018.Memory chips are used in everyday devices such as smartphones and storage drives, as well as in industrial and medical equipment, but their prices are notoriously volatile.Global demand for the chips has been driven by the growth of generative artificial intelligence technology, such as that used in OpenAI’s popular chatbot ChatGPT.Kioxia had been expected to go public in October, emboldened by soaring demand for AI, but a rout in tech shares forced the company to delay until this month.The firm set its listing price at 1,455 yen per share, valuing it at 784 billion yen ($5.2 billion) and raising about 120 billion yen — making it Japan’s second biggest IPO this year.Its shares closed 10 percent higher at 1,601 yen.The company previously said it planned to issue around 21.5 million new shares, in addition to more than 63 million to be sold at home and abroad by existing shareholders Bain Capital and Toshiba.Kioxia is among several Japanese semiconductor producers the government is subsidising as it seeks to triple the sales of domestically produced chips to more than 15 trillion yen by 2030.Firms such as Toshiba and NEC helped Japan dominate in microchips during the 1980s, but competition from South Korea and Taiwan saw its global market share slump from more than 50 percent to around 10 percent now.But as China ramps up military pressure on Taiwan, heralding volatility on the self-ruled island’s ability to produce semiconductors, hopes are running high that Japan will re-emerge as a new chip hub.

Shares in Japanese chipmaker Kioxia rallied more than seven percent on their debut in Tokyo on Wednesday after an initial public offering that valued the firm at more than $5 billion.Formerly the semiconductor unit of Japanese engineering giant Toshiba, the firm is the world’s third-largest producer of NAND flash memory chips.It was acquired by US investment firm Bain Capital in 2018.Memory chips are used in everyday devices such as smartphones and storage drives, as well as in industrial and medical equipment, but their prices are notoriously volatile.Global demand for the chips has been driven by the growth of generative artificial intelligence technology, such as that used in OpenAI’s popular chatbot ChatGPT.Kioxia had been expected to go public in October, emboldened by soaring demand for AI, but a rout in tech shares forced the company to delay until this month.The firm set its listing price at 1,455 yen per share, valuing the firm at 784 billion yen ($5.2 billion) and raising about 120 billion yen — making it Japan’s second biggest IPO this year.Its shares jumped as much as 7.7 percent in morning trade before paring the gains to sit 4.7 percent higher at 1,508 yen.The company previously said it planned to issue around 21.5 million new shares, in addition to more than 63 million to be sold at home and abroad by existing shareholders Bain Capital and Toshiba.Kioxia is among several Japanese semiconductor producers the government is subsidising as it seeks to triple the sales of domestically produced chips to more than 15 trillion yen by 2030.Firms such as Toshiba and NEC helped Japan dominate in microchips during the 1980s, but competition from South Korea and Taiwan saw its global market share slump from more than 50 percent to around 10 percent now.But as China ramps up military pressure on Taiwan, heralding volatility on the self-ruled island’s ability to produce semiconductors, hopes are running high that Japan will re-emerge as a new chip hub.

Call it an antidote to fast fashion: Japanese jeans hand-dyed with natural indigo and weaved on a clackety vintage loom, then sold at a premium to global denim connoisseurs.Unlike their mass-produced cousins, the tough garments crafted at the small Momotaro Jeans factory in southwest Japan are designed to be worn for decades, and come with a lifetime repair warranty.On site, Yoshiharu Okamoto gently dips cotton strings into a tub of deep blue liquid, which stains his hands and nails as he repeats the process.The cotton is imported from Zimbabwe, but the natural indigo they use is harvested in Japan — its colour far richer than synthetic imitations, according to Okamoto.He calls it a “time-consuming and costly” method, commonly used to dye kimonos in the 17th-19th century Edo period.Momotaro Jeans was established in 2006 by Japan Blue, one of a few dozen denim producers in the seaside town of Kojima, renowned for their artisan quality.”We’re very strict about all aspects of manufacturing,” Japan Blue’s president Masataka Suzuki told AFP.That includes “whether the sewing is done properly, and whether the dye is beautiful,” making local craftspeople with traditional manufacturing skills indispensable.Their efforts do not come cheap, however. A standard pair of Momotaro Jeans retails for around 30,000 yen ($200) while a silk-blend pair costs 60,000 yen.The brand’s most expensive offering, woven by hand on a wooden machine converted from a luxury kimono loom, has a price tag of over 200,000 yen.Following in the footsteps of popular high-end Japanese denim brands such as Osaka-based Evisu and Sugar Cane in Tokyo, interest in Japan Blue is growing among overseas shoppers.They now account for 40 percent of retail sales, and the company recently opened its sixth Kyoto store targeting deep-pocketed tourists.- ‘Niche’ reputation -Denim-making flourished from the 1960s in Kojima, which has a long history of cotton-growing and textile-making.In the Edo period, the town produced woven cords for samurai to bind sword handles. It then switched to producing split-toe “tabi” socks and, later, school uniforms.Now denim from Kojima is used by international luxury fashion brands.The market for Japanese jeans “has grown in the last 10 to 15 years”, said Michael Pendlebury, a tailor operating a repair shop in Britain called The Denim Doctor.Although revered by denim aficionados in Western countries, they remain “not quite affordable for most” with something of a “niche” reputation, Pendlebury said.”Mass-produced denim brands like Levis, Diesel and Wrangler are the largest, and more worn, but the highest quality is still Japanese in my opinion,” he said, adding that the weak yen and a tourism boom could boost sales of made-in-Japan jeans.Momotaro Jeans is named after a folklore hero in Okayama, where Kojima is located. It’s part of the wider denim-producing Sanbi area, which also includes Hiroshima.Another factor that makes brands like Momotaro Jeans idiosyncratic — and expensive — is the use of very noisy old shuttle-weaving machines, which have only a quarter of the output of the latest factory looms.They often break down, but the only people who know how to repair the machines are in their 70s or older, according to Shigeru Uchida, a weaving craftsman at Momotaro.The brand uses a handful of shuttle looms made in the 1980s by a company owned by Toyota.”There are only a few of them in Japan now” because they are no longer made, the 78-year-old Uchida said, walking back and forth between the machines to detect unusual sounds that could signal a breakdown.Despite the complexities, he says their fabric makes it worth it.”The texture is very smooth to the touch… and when made into jeans, it lasts quite a long time,” Uchida said.Suzuki says Momotaro Jeans is a “sustainable” choice because “no matter when you bring it to us, we will take responsibility for fixing it”.”When people spend a lot of time in their jeans, the path of their life is left on the clothes,” depending on how they wear or wash them and even where they live, Suzuki said. “We want to preserve such a mark as long as possible.”

Asian markets swung Wednesday ahead of the Federal Reserve’s much-anticipated policy announcement, while shares in Japanese car titan Nissan soared more than 20 percent after reports said it was in merger talks with rival Honda.There were few catalysts to drive region-wide activity before the US central bank’s interest rate decision, with Wall Street providing a negative lead as profit-takers moved in while economic data was mixed.The Fed is widely expected to cut borrowing costs for the third successive time when it concludes its gathering later in the day, but the main focus is on its statement, with traders hoping for guidance on its plans for next year.With inflation coming down but hovering above the two percent target and the labour market still robust, decision-makers have been able to loosen their grip on policy since September amid optimism they can guide the economy to a soft landing.However, with Donald Trump due to take the White House next month pledging tax cuts, deregulation and tariffs on imports from China, there are fears that prices could be reignited, forcing the Fed to re-evaluate its rates timetable.”We are experiencing a whirlwind of change and uncertainty that profoundly affects global economies,” said Stephen Innes of SPI Asset Management.”Questions loom: Will Donald Trump be a ‘Deal Maker in Chief’ or lean into his ‘Tariff Man’ persona? How will bond yields react? Can China effectively stimulate consumer demand? Will Trump broker peace in Eastern Europe? Will the dollar maintain its oppressive strength?”He added that “the crucial question is whether the Federal Reserve will signal a pause starting from the January (policy) meeting”.”My view leans toward an affirmative; the real intrigue, however, lies in how explicitly the Fed will beam this potential shift and confirm a ‘hawkish cut’.”While Wall Street fell — though still just off their recent record highs — Asian markets diverged. Hong Kong, Shanghai, Sydney, Seoul and Taipei rose but Singapore, Wellington and Manila fell.Tokyo edged down, though Nissan scorched 24 percent higher soon after opening in response to reports it was in preliminary merger talks with Honda, adding the move would help them better compete against Tesla and other electric vehicle makers.While both firms did not confirm the reports, they had agreed in March to explore a strategic partnership on EVs, which analysts said was aimed at catching up with Chinese competitors.Nissan in particular has been struggling, announcing 9,000 job cuts last month and slashing its annual sales forecast.The rise was the biggest since 1974, according to Bloomberg News.Honda fell about two percent, while Mitsubishi Motors — of which Nissan is the top stakeholder — gained more than 14 percent.On currency markets, the yen edged back against the dollar ahead of the Fed decision, while traders were also awaiting the conclusion of the Bank of Japan’s own Thursday meeting as debate swirls about when it will hike rates.Bitcoin pared gains after earlier hitting a new record of more than $108,315 Wednesday.- Key figures around 0230 GMT -Tokyo – Nikkei 225: DOWN 0.2 percent at 39,281.06 (break)Hong Kong – Hang Seng Index: UP 0.8 percent at 19,860.34Shanghai – Composite: UP 0.7 percent at 3,385.49Euro/dollar: UP at $1.0500 from $1.0498 TuesdayPound/dollar: DOWN at $1.2705 from $1.2707Dollar/yen: UP at 153.66 yen from 153.41 yen Euro/pound: UP at 82.63 pence from 82.52 penceWest Texas Intermediate: UP 0.3 percent at $70.26 per barrelBrent North Sea Crude: UP 0.3 percent at $73.38 per barrelNew York – Dow: DOWN 0.6 percent at 43,449.90 (close)London – FTSE 100: DOWN 0.8 percent at 8,195.20 (close)

TikTok’s breakneck rise from niche video-sharing app to global social media behemoth has drawn intense scrutiny, particularly over its links to China.The platform faces accusations of espionage in the United States, while the European Union has launched an investigation into claims it was used to sway Romania’s presidential election in favour of a far right candidate.So is TikTok a spying tool for Beijing, a fun app, or both?- Romania influence campaign -The EU is probing whether far-right presidential candidate Calin Georgescu’s surprise victory in the first round of Romania’s presidential election was aided by Russian meddling and “preferential treatment” by TikTok.It is the third investigation the commission has launched against TikTok, which risks fines of up to six percent of its global turnover.The platform said it had taken “robust actions” to tackle election-related misinformation. Russia has denied interfering in the vote.- Under pressure -The United States in April passed a law obliging TikTok’s Chinese owner ByteDance to sell off the platform by January 19 on the grounds it allowed China to access data on US users.If not, the platform would be banned in the United States — denying TikTok its claimed 170 million users in the countries.TikTok admitted ByteDance employees in China had accessed Americans’ data but it has denied giving data to the Chinese authorities.To protect data, the US government, the European Commission and Britain’s government had already banned TikTok from their employees’ work devices in 2023.- Teenage ban in Australia -But bans have not halted TikTok’s growth.With more than one billion active users worldwide, the platform is a phenomenon for young people attracted by its never-ending scroll of ultra-brief videos.Nearly a third of TikTok users are between 10 and 19 years old, according to the Wallaroo agency.But that success has brought accusations that the platform encourages the spread of misinformation and illegal, violent, or pornographic content, particularly among young people.TikTok was among the many platforms targeted by a landmark law passed in Australia in November banning under-16s from accessing social media.Social media firms that fail to comply with the law face fines of up to Aus$50 million (US$32.5 million) for “systemic breaches”.TikTok said it was “disappointed” by the Australian legislation, claiming it could push young people to the “darker corners of the internet”.- Opaque algorithm -Its editing features and powerful algorithm have kept it ahead of the game, attracting an army of creators and influencers as well as creating many of its own.But the algorithm is opaque and often accused of leading users into digital content silos.TikTok and ByteDance employees also manually increase the number of views on certain content, according to a report in Forbes.TikTok has said manual promotion only affects a tiny fraction of recommended videos.In August, the company, under pressure from EU regulators, was forced to ditch a feature in its TikTok Lite spinoff in France and Spain rewarding users for the time spent in front of their screens.In that rewards programme, users aged 18 and over could earn points to exchange for goods like vouchers or gift cards by liking and watching videos.It was accused by the EU of potentially having “very addictive consequences”.- Disinformation -The app is regularly accused of putting users in danger with the spread of hazardous “challenge” videos.Several children have reportedly died while trying to replicate the so-called blackout challenge, which involves users holding their breath until they pass out.And around one-fifth of videos on topical issues such as the Russian invasion of Ukraine were found to be fake or misleading in a study by misinformation group NewsGuard.AFP, along with more than a dozen fact-checking organisations, is paid by TikTok in several countries in Asia and Oceania, Europe, the Middle East and Spanish-speaking Latin America to verify for internal moderation videos that potentially contain false information. The videos are removed by TikTok if the information is shown to be false by AFP teams.

Major stock markets mostly fell Tuesday as attention turned to the US Federal Reserve’s upcoming policy decision, with traders hoping for guidance on its interest rate plans as President-elect Donald Trump prepares to take office.Wall Street’s major indices slid, with the Nasdaq Composite coming off a record high despite solid US retail sales data.”Investors are cashing in some of their profits ahead of Wednesday’s Fed rate decision at which a 25-basis-point rate cut is baked in,” said IG analyst Axel Rudolph.The Fed is widely expected to lower borrowing costs on Wednesday for the third meeting in a row as it looks to guide the world’s largest economy to a soft landing.But investors have already started paring their bets on how many times the Fed will cut over the next 12 months owing to still-sticky inflation, a strong labor market and uncertainty about Trump, who has pledged to slash taxes and impose tariffs on US imports.The reduction in the number of Fed interest rate cuts investors expect is evident in the rise in US Treasury yields, as they demand higher returns in expectation of fewer cuts.”US yields continue to rise as investors worry about the Fed pausing or slowing its monetary loosening cycle in 2025,” said Rudolph.The Fed statement and comments by its policymakers will be pored over for clues about next year’s outlook.- Tariffs fallout -The Canadian dollar fell to its lowest level against the US dollar since April 2020 after Canada’s Deputy Prime Minister Chrystia Freeland quit Monday in a surprise move, saying she disagreed with PM Justin Trudeau over Trump’s tariff threats.The resignation of Freeland, who also stepped down as finance minister, marked the first open dissent against Trudeau from within his cabinet, and may threaten his hold on power.Investors are also keeping tabs on Beijing after Chinese leaders’ latest measures to kickstart the economy fell short of expectations, with weak retail sales data Monday reinforcing the need for more support.In European equities trading, London slid as official data showing a jump in UK wage growth cemented forecasts that the Bank of England will avoid cutting interest rates this week.Paris edged higher but Frankfurt dipped as sentiment was hit by news that German business confidence this month hit the lowest level since the start of the coronavirus pandemic.”The Ifo Business Climate Index published today speaks for itself: the German economy is in the midst of a crisis,” said CMC Markets analyst Konstantin Oldenburger.Bitcoin traded close to a record high of almost $107,791 reached Monday on continued optimism that Trump will introduce measures to deregulate the cryptocurrency market.Among individual companies, Pfizer jumped 4.8 percent as it projected slightly higher profits in 2025 compared with this year.- Key figures around 2150 GMT -New York – Dow: DOWN 0.6 percent at 43,449.90 (close)New York – S&P 500: DOWN 0.4 percent at 6,050.61 (close)New York – Nasdaq Composite: DOWN 0.3 percent at 20,109.06 (close)London – FTSE 100: DOWN 0.8 percent at 8,195.20 (close)Paris – CAC 40: UP 0.1 percent at 7,365.70 (close)Frankfurt – DAX: DOWN 0.3 percent at 20,246.37 (close)Tokyo – Nikkei 225: DOWN 0.2 percent at 39,364.68 (close)Hong Kong – Hang Seng Index: DOWN 0.5 percent at 19,700.48 (close)Shanghai – Composite: DOWN 0.7 percent at 3,361.49 (close)Euro/dollar: DOWN at $1.0498 from $1.0512 MondayPound/dollar: UP at $1.2707 from $1.2683Dollar/yen: DOWN at 153.41 yen from 154.15 yen Euro/pound: DOWN at 82.52 pence from 82.88 penceWest Texas Intermediate: DOWN 0.9 percent at $70.08 per barrelBrent North Sea Crude: DOWN 1.0 percent at $73.19 per barrelburs-jmb/aha

Japanese auto giants Honda Motor and Nissan Motor will enter talks on a merger aimed at helping them compete against Tesla and other electric vehicle makers, newspaper Nikkei reported early Wednesday.The two firms are looking to operate under a single holding company and will soon sign a memorandum of understanding for the new entity, according to the Tokyo-based Nikkei.It reported that Honda and Nissan will consider bringing in Mitsubishi Motors, of which Nissan is the top shareholder, under the holding company to create one of the world’s largest auto groups.Honda and Nissan issued almost identical statements in response, saying the details in the report had not been announced by either firm, and that they are “exploring various possibilities for future collaboration, leveraging each other’s strengths,” as previously announced.In March, Japan’s number two and three automakers, after rival Toyota, deepened ties when they agreed to explore a strategic partnership on electric vehicles.Analysts said the move was aimed at catching up with Chinese competitors such as BYD who have stolen a march on EVs while Japanese firms have lost ground by focusing more on hybrid vehicles.China overtook Japan as the world’s biggest vehicle exporter in 2023, helped by its dominance in electric cars.Honda announced plans in May to double investment in electric vehicles to $65 billion by 2030, part of its ambitious target set three years ago of achieving 100 percent EV sales by 2040.Nissan has signalled similar ambitions, saying in March that 16 of the 30 new models it plans to launch over the next three years would be “electrified”.The world’s auto giants are increasingly prioritising electric and hybrid vehicles, with demand growing for less polluting models as concern about climate change grows.At the same time, however, there has been a slowdown in the EV market on the back of consumer concern about high prices, reliability, range and a lack of charging points.Hybrids that combine battery power and internal combustion engines have proved enduringly popular in Japan, accounting for 40 percent of sales in 2022.But Japanese firms’ focus on hybrids has left them in the slow lane in meeting the growing appetite for purely electric vehicles.Just 1.7 percent of cars sold in Japan in 2022 were electric — compared to 15 percent in western Europe and 5.3 percent in the United States.

Major stock markets mostly fell Tuesday as attention turned to the Federal Reserve’s upcoming policy decision, with traders hoping for guidance on its interest rate plans as president-elect Donald Trump prepares to take office.Wall Street’s major indices fell at the opening bell, having ended the previous day mostly higher with Asia unable to pick up the baton Tuesday.In one of the last data releases ahead of the Fed’s rate decision, November US retail sales rose by 0.7 percent, beating analyst expectations, but excluding auto sales were up only 0.2 percent.”The key takeaway from the report is in the ex-auto number, which was up modestly and a reflection of some softening spending activity given that it is not adjusted for price changes,” said Briefing.com analyst Patrick O’Hare.Investors were also reacting to a rise in Treasury rates, he added. The Fed is expected to lower borrowing costs on Wednesday for the third meeting in a row as it looks to guide the world’s top economy to a soft landing.However, its statement will be pored over for clues about next year’s outlook, and investors have already started paring their bets on how many times the Fed will cut over the next 12 months owing to still-sticky inflation, a strong labour market and uncertainty about Trump, who has pledged to slash taxes and impose tariffs on imports.- Tariffs fallout -The Canadian dollar fell to the lowest level against the US dollar since April 2020 after Canada’s Deputy Prime Minister Chrystia Freeland quit Monday in a surprise move, saying she disagrees with Justin Trudeau over US president-elect Donald Trump’s tariff threats.The resignation of Freeland, who also stepped down as finance minister, marked the first open dissent against Prime Minister Trudeau from within his cabinet, and may threaten his hold on power.In her letter, Freeland said the country needed to take Trump’s tariffs threats “extremely seriously”.Warning that it could lead to a “tariff war” with the United States, she said Ottawa must keep its “fiscal powder dry”.Trudeau flew to Florida last month to dine with Trump at the latter’s Mar-a-Lago resort and try to head off the tariff threat, but nothing yet indicates the US president-elect is changing his position.Investors are also keeping tabs on Beijing after Chinese leaders’ latest measures to kickstart the economy fell short of expectations, with weak retail sales data Monday reinforcing the need for more support.In European equities trading, London slid in afternoon deals as official data showing a jump in UK wages growth cemented forecasts that the Bank of England will avoid cutting interest rates this week. Paris edged higher but Frankfurt dipped as sentiment was hit by news that German business confidence this month hit the lowest level since the start of the coronavirus pandemic.Bitcoin traded close to a record high of almost $107,791 reached Monday on continued optimism that Trump will introduce measures to deregulate the cryptocurrency market.Oil prices retreated, hit by concerns that China’s struggling economy will impact demand for crude.- Key figures around 1430 GMT -New York – Dow: DOWN 0.5 percent at 43,495.92 pointsNew York – S&P 500: DOWN 0.5 percent at 6,043.09New York – Nasdaq Composite: DOWN 0.5 percent at 20,078.31London – FTSE 100: DOWN 0.7 percent at 8,208.25 Paris – CAC 40: UP less than 0.1 percent at 7,360.29Frankfurt – DAX: DOWN 0.1 percent at 20,287.68Tokyo – Nikkei 225: DOWN 0.2 percent at 39,364.68 (close)Hong Kong – Hang Seng Index: DOWN 0.5 percent at 19,700.48 (close)Shanghai – Composite: DOWN 0.7 percent at 3,361.49 (close)Euro/dollar: DOWN at $1.0506 from $1.0509 MondayPound/dollar: UP at $1.2695 from $1.2678Dollar/yen: DOWN at 153.63 yen from 154.13 yen Euro/pound: DOWN at 82.77 pence from 82.86 penceWest Texas Intermediate: DOWN 1.2 percent at $69.87 per barrelBrent North Sea Crude: DOWN 1.1 percent at $73.10 per barrelburs-rl/gv