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<div class="x_elementToProof" data-olk-copy-source="MessageBody">India has formally taken its first retaliatory step against US President Donald Trump&rsquo;s tariff regime by submitting a notice to the World Trade Organization (WTO) proposing counter-duties on selected American goods.&nbsp;</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">The move comes as trade talks between the two nations enter a sensitive phase, with both sides seeking to finalise a comprehensive bilateral deal by late 2025</div>
<h2 class="x_elementToProof"><b>What India has proposed?</b></h2>
<div class="x_elementToProof">In a notification dated 12 May 2025, India informed the WTO of its intent to &ldquo;suspend concessions or other obligations&rdquo; under global trade rules, in response to the United States&rsquo; tariffs on imported steel and aluminium. According to Reuters, India stated that the US duties would affect $7.6 billion worth of Indian exports, resulting in an estimated $1.91 billion in additional tariffs.&nbsp;</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">As per WTO rules, India is entitled to impose retaliatory duties equal to the value of the damage caused, although it has yet to specify which US products would be targeted.</div>
<h2 class="x_elementToProof"><b>Trump&rsquo;s tariff saga</b></h2>
<div class="x_elementToProof">The tariff tensions between India and the US escalated sharply in recent months. In March 2025, President Trump extended his earlier tariff policy by reimposing 25 per cent duties on all steel and aluminium imports, including those from India, according to a Reuters report. This action revived the tariff mechanism first deployed during Trump&rsquo;s initial term in 2018 under Section 232 of the Trade Expansion Act.</div>
<div class="x_elementToProof" aria-hidden="true">&nbsp;</div>
<div class="x_elementToProof">Then in April 2025, the United States imposed an additional 26 per cent &ldquo;reciprocal tariff&rdquo; across a broad range of Indian exports, citing India&rsquo;s historically high import duties. According to Reuters, this round of tariffs impacted key Indian sectors such as electronics, gems and jewellery, aluminium components, and auto parts &mdash; industries that previously benefited from US tariffs averaging below 2 per cent.&nbsp;</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">The sharp increase in costs rendered Indian goods less competitive in the American market, leading to a noticeable dip in export volumes, as noted by trade analysts.</div>
<h2 class="x_elementToProof"><b>A shift in India&rsquo;s approach</b></h2>
<div class="x_elementToProof">Until recently, India had chosen to respond diplomatically to the Trump administration&rsquo;s protectionist moves. Earlier this year, New Delhi slashed import duties on more than 8,500 industrial products, including premium American exports, in an effort to reduce tensions and pave the way for a smoother trade agreement.&nbsp;</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">But with the latest wave of tariffs and Trump&rsquo;s public remarks linking US-India trade ties to the recent ceasefire between India and Pakistan, New Delhi&rsquo;s tone has notably hardened.</div>
<h2 class="x_elementToProof"><b>What lies ahead?</b></h2>
<div class="x_elementToProof">India&rsquo;s countermeasures come at a precarious time. Both nations are in the final stretch of negotiating a bilateral trade agreement, with India reportedly offering to narrow its tariff gap with the US by nearly two-thirds.&nbsp;</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">But this tit-for-tat move may complicate the discussions. While the WTO permits such retaliation under its safeguard rules, any escalation could undermine the spirit of cooperation both countries have sought to maintain in recent months.<br><br></div>
<div class="x_elementToProof">As the world&rsquo;s largest and oldest democracies try to balance protectionism and partnership, the coming weeks will determine whether diplomacy or trade disruption shapes the future of India-US economic relations.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof"></div>

Business & Economy: New Delhi employs a WTO clause to challenge US tariffs on steel and aluminium, a move involving goods valued at $billion, marking a significant trade action.

India has formally taken its first retaliatory step against US President Donald Trump’s tariff regime by submitting a notice to the World Trade Organization (WTO) proposing counter-duties on selected American goods. The move comes as trade talks between the two nations enter a sensitive phase, with both sides seeking to finalise a comprehensive bilateral deal by late 2025 What India has proposed? In a notification dated 12 May 2025, India informed the WTO of its intent to “suspend concessions or other obligations” under global trade rules, in response to the United States’ tariffs on imported steel and aluminium. According to Reuters, India stated that the US duties would affect $7.6 billion worth of Indian exports, resulting in an estimated $1.91 billion in additional tariffs. As per WTO rules, India is entitled to impose retaliatory duties equal to the value of the damage caused, although it has yet to specify which US products would be targeted. Trump’s tariff saga The tariff tensions between India and the US escalated sharply in recent months. In March 2025, President Trump extended his earlier tariff policy by reimposing 25 per cent duties on all steel and aluminium imports, including those from India, according to a Reuters report. This action revived the tariff mechanism first deployed during Trump’s initial term in 2018 under Section 232 of the Trade Expansion Act. Then in April 2025, the United States imposed an additional 26 per cent “reciprocal tariff” across a broad range of Indian exports, citing India’s historically high import duties. According to Reuters, this round of tariffs impacted key Indian sectors such as electronics, gems and jewellery, aluminium components, and auto parts — industries that previously benefited from US tariffs averaging below 2 per cent. The sharp increase in costs rendered Indian goods less competitive in the American market, leading to a noticeable dip in export volumes, as noted by trade analysts. A shift in India’s approach Until recently, India had chosen to respond diplomatically to the Trump administration’s protectionist moves. Earlier this year, New Delhi slashed import duties on more than 8,500 industrial products, including premium American exports, in an effort to reduce tensions and pave the way for a smoother trade agreement. But with the latest wave of tariffs and Trump’s public remarks linking US-India trade ties to the recent ceasefire between India and Pakistan, New Delhi’s tone has notably hardened. What lies ahead? India’s countermeasures come at a precarious time. Both nations are in the final stretch of negotiating a bilateral trade agreement, with India reportedly offering to narrow its tariff gap with the US by nearly two-thirds. But this tit-for-tat move may complicate the discussions. While the WTO permits such retaliation under its safeguard rules, any escalation could undermine the spirit of cooperation both countries have sought to maintain in recent months. As the world’s largest and oldest democracies try to balance protectionism and partnership, the coming weeks will determine whether diplomacy or trade disruption shapes the future of India-US economic relations.

India proposes first counter move against Trump tariffs, submits notice to WTO

<div>Chinese President Xi Jinping announced bold new initiatives aimed at deepening ties between China and Latin America and the Caribbean (LAC) nations during his address at the fourth ministerial meeting of the China-Community of Latin American and Caribbean States (CELAC) Forum in Beijing.</div>
<div></div>
<div>Xi&rsquo;s remarks come at a time when the region is grappling with increased pressure from the United States, particularly under the Trump administration, as the US continues to intensify trade wars and regional influence efforts.</div>
<div></div>
<div>The developments at the CELAC forum came just one day after the US and China reached a 90-day truce on tariffs, which many analysts view as a significant de-escalation in the ongoing trade war between the two economic giants.</div>
<div></div>
<div>Xi's proposals, which include a substantial credit line and a push for stronger trade and economic partnerships, underscore China's growing ambition to be seen as a more reliable global partner than the US in a rapidly changing geopolitical environment.</div>
<div></div>
<h2><b>A battle for influence</b></h2>
<div></div>
<div>In his address, Xi vowed to expand China&rsquo;s influence in the LAC region by offering a 66 billion yuan (approximately $9.2 billion) credit line to support LAC's development. He also announced visa-free access to five countries within the region, though he did not specify which nations would benefit. These moves are part of China&rsquo;s broader strategy to fortify its presence in Latin America.</div>
<div></div>
<div>The Chinese president emphasised that trade wars are counterproductive, stressing that &ldquo;there are no winners in tariff wars&rdquo; and highlighting China&rsquo;s role as an advocate for multilateralism and international fairness. As Latin American nations struggle with the fallout from rising US tariffs under President Trump, Xi&rsquo;s statements underscored Beijing&rsquo;s effort to position itself as a counterweight to Washington&rsquo;s increasingly aggressive and protectionist stance.</div>
<div></div>
<div>Xi also outlined measures to increase Chinese imports of goods from Latin America, especially high-quality products, in an effort to support the region&rsquo;s diverse economies beyond traditional resource exports like oil, iron ore, and soybeans. China has increasingly invested in sectors such as clean energy, telecommunications, and artificial intelligence (AI), sectors where Xi is keen to expand cooperation with LAC countries.</div>
<div></div>
<div>In a nod to the growing demand for infrastructure investments, Xi reiterated China's commitment to supporting regional development projects, with a particular focus on clean energy. China&rsquo;s Belt and Road Initiative (BRI), which has already seen multiple Latin American countries join, was positioned as an opportunity for LAC nations to modernise and diversify their economies.</div>
<div></div>
<h2><b>China&rsquo;s growing presence irks US</b></h2>
<div></div>
<div>The US has ramped up efforts to curtail China&rsquo;s growing influence in Latin America. Notably, US Secretary of State Marco Rubio has visited multiple countries in the region, urging governments to limit their ties with Beijing. Meanwhile, US President Donald Trump has accused China of manipulating the region&rsquo;s strategic assets, particularly the Panama Canal, and has sought to restrict Chinese investments in infrastructure projects across the continent.</div>
<div></div>
<div>China&rsquo;s involvement in Latin America, particularly its investments in key infrastructure projects, has become a point of contention in Washington. However, Beijing&rsquo;s expanded role in the region continues to grow.</div>
<div></div>
<div>In his remarks, Xi refrained from directly mentioning President Trump or his administration, but his criticism of unilateralism and protectionism made his stance clear. "Only through unity and cooperation can countries safeguard global peace and stability and promote worldwide development and prosperity," Xi said.</div>
<div></div>
<div>The trade war between the US and China has spilled into Latin America, forcing countries in the region to navigate a delicate balancing act. Many Latin American nations rely heavily on exports to both China and the US, making them vulnerable to the impacts of tariffs and trade restrictions.</div>
<div></div>
<div>One of the most striking elements of Xi&rsquo;s speech was his strong condemnation of "bullying" in international relations. Xi&rsquo;s declaration that &ldquo;there are no winners in tariff wars&rdquo; was a pointed critique of President Trump&rsquo;s aggressive trade policies, which have rattled markets and strained global supply chains.</div>
<div></div>
<div>&ldquo;Bullying and hegemony will only lead to self-isolation,&rdquo; Xi said, emphasising that such tactics were not conducive to long-term global stability. The Chinese leader's remarks echoed the sentiments of many Latin American officials who have grown weary of US economic pressure and political interference. By framing China as an alternative to US economic dominance, Xi aims to offer Latin American nations a pathway toward greater autonomy and prosperity.</div>
<div></div>
<div>This message was further underscored by the participation of prominent Latin American leaders such as Brazilian President Luiz In&aacute;cio Lula da Silva, Chilean President Gabriel Boric, and Colombian President Gustavo Petro, all of whom were present at the forum. These leaders have voiced their support for deeper economic cooperation with China, and some have even joined the Belt and Road Initiative (BRI), which seeks to improve infrastructure and trade connectivity across continents.</div>
<div></div>
<div>Boric, in particular, emphasised the need for a &ldquo;horizontal&rdquo; dialogue between civilizations, one that moves away from authoritarianism and imperialism. His comments reflect the sentiment in many parts of Latin America, where there is growing frustration with US dominance in the region and a desire for more equitable partnerships.</div>
<div></div>
<h2><b>A new chapter for Latin America-China ties</b></h2>
<div></div>
<div>The strengthening of economic ties between China and Latin America is poised to continue, especially as many LAC countries seek to diversify their trade partnerships and reduce their reliance on the US amid growing uncertainties in its policies and its protectionist stance. With the expansion of infrastructure projects and increasing Chinese investment in key industries, the relationship between China and Latin America is evolving rapidly.</div>
<div></div>
<div>Xi&rsquo;s speech also highlighted the role of China as a global leader in emerging sectors like clean energy and high-tech industries. As part of its broader diplomatic outreach, China has sought to position itself as a champion of multilateralism, offering an alternative to US protectionism and isolationism.</div>
<div></div>
<div>In the face of rising US tariffs and mounting pressures, Latin America now finds itself at a crossroads. As China offers financial support, new trade opportunities, and a more multilateral approach, it seems clear that many countries in the region will continue to look eastward for new opportunities.</div>
<div></div>
<div>(<em>With inputs from agencies</em>)</div>

Business & Economy: China to expand influence in the LAC region by offering about $9.2 billion credit line for development and allowing visa-free access to five countries

Chinese President Xi Jinping announced bold new initiatives aimed at deepening ties between China and Latin America and the Caribbean (LAC) nations during his address at the fourth ministerial meeting of the China-Community of Latin American and Caribbean States (CELAC) Forum in Beijing. Xi’s remarks come at a time when the region is grappling with increased pressure from the United States, particularly under the Trump administration, as the US continues to intensify trade wars and regional influence efforts. The developments at the CELAC forum came just one day after the US and China reached a 90-day truce on tariffs, which many analysts view as a significant de-escalation in the ongoing trade war between the two economic giants. Xi's proposals, which include a substantial credit line and a push for stronger trade and economic partnerships, underscore China's growing ambition to be seen as a more reliable global partner than the US in a rapidly changing geopolitical environment. A battle for influence In his address, Xi vowed to expand China’s influence in the LAC region by offering a 66 billion yuan (approximately $9.2 billion) credit line to support LAC's development. He also announced visa-free access to five countries within the region, though he did not specify which nations would benefit. These moves are part of China’s broader strategy to fortify its presence in Latin America. The Chinese president emphasised that trade wars are counterproductive, stressing that “there are no winners in tariff wars” and highlighting China’s role as an advocate for multilateralism and international fairness. As Latin American nations struggle with the fallout from rising US tariffs under President Trump, Xi’s statements underscored Beijing’s effort to position itself as a counterweight to Washington’s increasingly aggressive and protectionist stance. Xi also outlined measures to increase Chinese imports of goods from Latin America, especially high-quality products, in an effort to support the region’s diverse economies beyond traditional resource exports like oil, iron ore, and soybeans. China has increasingly invested in sectors such as clean energy, telecommunications, and artificial intelligence (AI), sectors where Xi is keen to expand cooperation with LAC countries. In a nod to the growing demand for infrastructure investments, Xi reiterated China's commitment to supporting regional development projects, with a particular focus on clean energy. China’s Belt and Road Initiative (BRI), which has already seen multiple Latin American countries join, was positioned as an opportunity for LAC nations to modernise and diversify their economies. China’s growing presence irks US The US has ramped up efforts to curtail China’s growing influence in Latin America. Notably, US Secretary of State Marco Rubio has visited multiple countries in the region, urging governments to limit their ties with Beijing. Meanwhile, US President Donald Trump has accused China of manipulating the region’s strategic assets, particularly the Panama Canal, and has sought to restrict Chinese investments in infrastructure projects across the continent. China’s involvement in Latin America, particularly its investments in key infrastructure projects, has become a point of contention in Washington. However, Beijing’s expanded role in the region continues to grow. In his remarks, Xi refrained from directly mentioning President Trump or his administration, but his criticism of unilateralism and protectionism made his stance clear. "Only through unity and cooperation can countries safeguard global peace and stability and promote worldwide development and prosperity," Xi said. The trade war between the US and China has spilled into Latin America, forcing countries in the region to navigate a delicate balancing act. Many Latin American nations rely heavily on exports to both China and the US, making them vulnerable to the impacts of tariffs and trade restrictions. One of the most striking elements of Xi’s speech was his strong condemnation of "bullying" in international relations. Xi’s declaration that “there are no winners in tariff wars” was a pointed critique of President Trump’s aggressive trade policies, which have rattled markets and strained global supply chains. “Bullying and hegemony will only lead to self-isolation,” Xi said, emphasising that such tactics were not conducive to long-term global stability. The Chinese leader's remarks echoed the sentiments of many Latin American officials who have grown weary of US economic pressure and political interference. By framing China as an alternative to US economic dominance, Xi aims to offer Latin American nations a pathway toward greater autonomy and prosperity. This message was further underscored by the participation of prominent Latin American leaders such as Brazilian President Luiz Inácio Lula da Silva, Chilean President Gabriel Boric, and Colombian President Gustavo Petro, all of whom were present at the forum. These leaders have voiced their support for deeper economic cooperation with China, and some have even joined the Belt and Road Initiative (BRI), which seeks to improve infrastructure and trade connectivity across continents. Boric, in particular, emphasised the need for a “horizontal” dialogue between civilizations, one that moves away from authoritarianism and imperialism. His comments reflect the sentiment in many parts of Latin America, where there is growing frustration with US dominance in the region and a desire for more equitable partnerships. A new chapter for Latin America-China ties The strengthening of economic ties between China and Latin America is poised to continue, especially as many LAC countries seek to diversify their trade partnerships and reduce their reliance on the US amid growing uncertainties in its policies and its protectionist stance. With the expansion of infrastructure projects and increasing Chinese investment in key industries, the relationship between China and Latin America is evolving rapidly. Xi’s speech also highlighted the role of China as a global leader in emerging sectors like clean energy and high-tech industries. As part of its broader diplomatic outreach, China has sought to position itself as a champion of multilateralism, offering an alternative to US protectionism and isolationism. In the face of rising US tariffs and mounting pressures, Latin America now finds itself at a crossroads. As China offers financial support, new trade opportunities, and a more multilateral approach, it seems clear that many countries in the region will continue to look eastward for new opportunities. (With inputs from agencies)

China strengthens ties with Latin America amid growing uncertainties

<div class="x_elementToProof" data-olk-copy-source="MessageBody">After weeks of escalating tension, the United States and China have agreed to de-escalate their trade war during high-level talks in Geneva. In a major diplomatic breakthrough, both sides have agreed to unwind the steep tariffs imposed on each other&rsquo;s goods since early April.</div>
<div class="x_elementToProof" data-olk-copy-source="MessageBody"></div>
<div class="x_elementToProof" data-olk-copy-source="MessageBody">The US will reduce its combined duties on most Chinese imports from 145 per cent to 30 per cent for a period of 90 days. In response, China will slash its duties on American goods from 125 per cent to 10 per cent, also removing other retaliatory measures implemented over the past month.</div>
<h2 class="x_elementToProof"><b>US cuts &lsquo;de minimis&rsquo; tariff on China shipments</b></h2>
<div class="x_elementToProof">In line with this truce, according to Reuters, the White House has announced a significant rollback of a controversial tariff policy. Starting 14 May, Washington will reduce the so-called &lsquo;de minimis&rsquo; tariff on Chinese shipments to 54 per cent from the previously imposed 120 per cent. The flat fee of $100 per shipment will remain in place, according to an executive order issued by the White House on Monday as reported by Reuters.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">The de minimis rule allows goods valued at up to $800 to enter the US via postal services with little or no inspection. Previously, such items from China enjoyed duty-free entry, but that changed in February when President Donald Trump scrapped the exemption and slapped a 120 per cent tariff or a planned $200 flat fee&mdash;on these packages. The move was aimed at curbing the surge of Chinese e-commerce shipments from companies like Shein and Temu, and addressing concerns about the misuse of this channel for smuggling drugs such as fentanyl, according to Reuters.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Introduced in 1938 to reduce administration burden, under former US President Barack Obama, the threshold was raised from $200 to $800. This led to a massive e-commerce boom in the states. According to US Customs and Border Protection's website, shipments entering states have grown by 600 percent in the past 10 years. From 139 million shipments in 2015 it went to over one billion in fiscal year 2023 and in fiscal year 2024, it crossed 1.36 billion mark.</div>
<div class="x_elementToProof" aria-hidden="true">&nbsp;</div>
<div class="x_elementToProof">Now, as per Reuters, with trade tensions easing, the White House has decided to amend the 120 per cent rate to 54 per cent and shelve the $200 flat fee, keeping it at $100 instead. The new rates will take effect from 12:01 a.m. (0401 GMT) on 14 May.</div>
<h2 class="x_elementToProof"><b>China lifts ban on Boeing aircraft deliveries</b></h2>
<div class="x_elementToProof">In a reciprocal gesture, China has lifted its month-long ban on deliveries of Boeing aircraft, according to a Bloomberg report. The decision, communicated to Chinese airlines and government agencies earlier this week, comes in the wake of the tariff truce and is expected to provide an immediate boost to the American aviation giant.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">According to Bloomberg, the ban had severely impacted Boeing, as it found itself caught in the crossfire of the trade war. After President Trump&rsquo;s sweeping tariffs on key trading partners, Beijing retaliated by ordering domestic airlines to halt Boeing deliveries, pricing the US-made jets out of the Chinese market.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">While China is one of Boeing&rsquo;s most important markets, expected to account for 20 per cent of global aircraft demand over the next two decades, according to Boeing&rsquo;s 2023 Commercial Market Outlook&mdash;the company has struggled in recent years due to both trade tensions and internal quality issues. In 2019, China became the first country to ground the 737 Max after two fatal crashes. In early 2024, the company faced renewed scrutiny after a door plug incident mid-flight triggered another quality crisis.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">The easing of restrictions allows around 50 Boeing aircraft scheduled for delivery to China this year to proceed, according to Bloomberg. The report also noted that Boeing had already begun redirecting some of these aircraft to markets like India, Malaysia, and Saudi Arabia.</div>
<h2 class="x_elementToProof"><b>A temporary reprieve or a turning point?</b></h2>
<div class="x_elementToProof">While these policy shifts mark a notable thaw in US-China relations, the concessions come with a time limit. The reduced tariff rates and other eased measures are set to last only 90 days unless further progress is achieved. The Geneva talks have opened a window for negotiation, but experts caution that the deal is a temporary reprieve, not a permanent resolution.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">With geopolitical rivalry, domestic pressures, and industrial competition continuing to loom large, the next round of negotiations will be crucial in determining whether the world&rsquo;s two largest economies can stabilise their fraught trade relationship&mdash;or fall back into economic confrontation.</div>

Business & Economy: The US-China trade deal marks a crucial step towards normalizing trade relations between the two economic giants, potentially paving the way for future cooperation.

After weeks of escalating tension, the United States and China have agreed to de-escalate their trade war during high-level talks in Geneva. In a major diplomatic breakthrough, both sides have agreed to unwind the steep tariffs imposed on each other’s goods since early April. The US will reduce its combined duties on most Chinese imports from 145 per cent to 30 per cent for a period of 90 days. In response, China will slash its duties on American goods from 125 per cent to 10 per cent, also removing other retaliatory measures implemented over the past month. US cuts ‘de minimis’ tariff on China shipments In line with this truce, according to Reuters, the White House has announced a significant rollback of a controversial tariff policy. Starting 14 May, Washington will reduce the so-called ‘de minimis’ tariff on Chinese shipments to 54 per cent from the previously imposed 120 per cent. The flat fee of $100 per shipment will remain in place, according to an executive order issued by the White House on Monday as reported by Reuters. The de minimis rule allows goods valued at up to $800 to enter the US via postal services with little or no inspection. Previously, such items from China enjoyed duty-free entry, but that changed in February when President Donald Trump scrapped the exemption and slapped a 120 per cent tariff or a planned $200 flat fee—on these packages. The move was aimed at curbing the surge of Chinese e-commerce shipments from companies like Shein and Temu, and addressing concerns about the misuse of this channel for smuggling drugs such as fentanyl, according to Reuters. Introduced in 1938 to reduce administration burden, under former US President Barack Obama, the threshold was raised from $200 to $800. This led to a massive e-commerce boom in the states. According to US Customs and Border Protection's website, shipments entering states have grown by 600 percent in the past 10 years. From 139 million shipments in 2015 it went to over one billion in fiscal year 2023 and in fiscal year 2024, it crossed 1.36 billion mark. Now, as per Reuters, with trade tensions easing, the White House has decided to amend the 120 per cent rate to 54 per cent and shelve the $200 flat fee, keeping it at $100 instead. The new rates will take effect from 12:01 a.m. (0401 GMT) on 14 May. China lifts ban on Boeing aircraft deliveries In a reciprocal gesture, China has lifted its month-long ban on deliveries of Boeing aircraft, according to a Bloomberg report. The decision, communicated to Chinese airlines and government agencies earlier this week, comes in the wake of the tariff truce and is expected to provide an immediate boost to the American aviation giant. According to Bloomberg, the ban had severely impacted Boeing, as it found itself caught in the crossfire of the trade war. After President Trump’s sweeping tariffs on key trading partners, Beijing retaliated by ordering domestic airlines to halt Boeing deliveries, pricing the US-made jets out of the Chinese market. While China is one of Boeing’s most important markets, expected to account for 20 per cent of global aircraft demand over the next two decades, according to Boeing’s 2023 Commercial Market Outlook—the company has struggled in recent years due to both trade tensions and internal quality issues. In 2019, China became the first country to ground the 737 Max after two fatal crashes. In early 2024, the company faced renewed scrutiny after a door plug incident mid-flight triggered another quality crisis. The easing of restrictions allows around 50 Boeing aircraft scheduled for delivery to China this year to proceed, according to Bloomberg. The report also noted that Boeing had already begun redirecting some of these aircraft to markets like India, Malaysia, and Saudi Arabia. A temporary reprieve or a turning point? While these policy shifts mark a notable thaw in US-China relations, the concessions come with a time limit. The reduced tariff rates and other eased measures are set to last only 90 days unless further progress is achieved. The Geneva talks have opened a window for negotiation, but experts caution that the deal is a temporary reprieve, not a permanent resolution. With geopolitical rivalry, domestic pressures, and industrial competition continuing to loom large, the next round of negotiations will be crucial in determining whether the world’s two largest economies can stabilise their fraught trade relationship—or fall back into economic confrontation.

US-China ease trade war: Washington cuts ‘de minimis’ tariff, Beijing lifts Boeing delivery ban

<div class="x_elementToProof" data-olk-copy-source="MessageBody">US inflation is expected to tick higher in April, as fresh data is poised to reflect the early impact of President Donald Trump&rsquo;s tariff spree&mdash;raising questions about the Federal Reserve&rsquo;s next steps and rattling currency markets.</div>
<div class="x_elementToProof" data-olk-copy-source="MessageBody"></div>
<div class="x_elementToProof">The Bureau of Labor Statistics will release the April Consumer Price Index (CPI) report today at 12:30 GMT (8:30 a.m. EST), a high-impact data point that could sway the Federal Reserve&rsquo;s rate outlook and shift momentum in the US Dollar.</div>
<h2 class="x_elementToProof"><b>Forecast: Inflation likely to edge up again</b></h2>
<div class="x_elementToProof">According to the Bureau of Labor Statistics, headline inflation is projected to come in at 2.4 per cent year-over-year in April, unchanged from March&rsquo;s reading. However, on a month-over-month basis, prices are reportedly expected to rise by 0.3 per cent, reversing the 0.1 per cent decline seen in March.</div>
<div class="x_elementToProof">As per Bloomberg, core CPI, which excludes volatile food and energy costs is also forecast to climb 0.3 per cent from the previous month, keeping the annual rate steady at 2.8 per cent, the same as March when core inflation hit a four-year low.</div>
<div class="x_elementToProof">This view is echoed by a Bloomberg survey of economists, which forecasts a 0.3 per cent increase in both headline and core CPI in April. According to Bloomberg, the uptick marks a shift from March&rsquo;s unexpected decline and signals that inflationary pressures are re-emerging as tariffs take hold.</div>
<h2 class="x_elementToProof"><b>Trump tariffs fiasco &nbsp;</b></h2>
<div class="x_elementToProof">President Trump&rsquo;s &ldquo;Liberation Day&rdquo; announcement on April 2 unveiled sweeping tariffs on Chinese goods and several European imports. Although the administration later paused most new tariffs for 90 days, a 10 per cent duty on Chinese goods remains active and has started filtering through to prices.</div>
<div class="x_elementToProof">According to Bloomberg, categories like toys, apparel, and household goods, many of which are heavily reliant on Chinese supply chains&mdash;could begin to reflect price hikes in April&rsquo;s data, even if the full impact is expected to hit harder in Q3.</div>
<h2 class="x_elementToProof"><b>Fed takes a wait-and-watch approach</b></h2>
<div class="x_elementToProof">During the Federal Reserve&rsquo;s May 7 policy meeting, the central bank left interest rates unchanged at 4.25 per cent&ndash;4.50 per cent. Fed Chair Jerome Powell acknowledged that &ldquo;the risks of higher inflation and unemployment have risen,&rdquo; but emphasized that it was not yet time to alter the policy path.</div>
<div class="x_elementToProof">Powell noted that &ldquo;near-term inflation expectations have increased due to tariffs&rdquo; and that the Fed&rsquo;s current stance allows room to observe how the data evolves, as reported by Reuters.</div>
<h2 class="x_elementToProof"><b>Washington's trade deal with UK &amp; China&nbsp;</b></h2>
<div class="x_elementToProof">Adding complexity to the inflation outlook are recent US-China trade talks. Over the weekend, both sides announced progress in Geneva, agreeing to suspend some tariffs for 90 days. According to the joint statement, the US has cut tariffs from 145 per cent to 30 per cent, while China reduced duties from 125 per cent to 10 per cent.</div>
<div class="x_elementToProof">Meanwhile, the &ldquo;reciprocal&rdquo; tariff rate of 10 per cent on British goods remains unchanged, the UK will benefit from exemptions for steel and cars, as well as increased market access for agricultural exports. The deal also leaves room for further negotiation down the line</div>
<div class="x_elementToProof">This truce could ease pressure on global supply chains and retail importers, though its inflation-dampening effects are unlikely to appear in the April data.</div>
<div class="x_elementToProof">With inflation caught between tariffs and slowing demand, the April CPI report may prove pivotal, not just for monetary policy, but for global markets still trying to price in the true cost of Trump&rsquo;s trade war.</div>
<div class="x_elementToProof"></div>

Business & Economy: The Bureau of Labor Statistics will release the April Consumer Price Index (CPI) report today at 12:30 GMT (8:30 a.m. EST).

US inflation is expected to tick higher in April, as fresh data is poised to reflect the early impact of President Donald Trump’s tariff spree—raising questions about the Federal Reserve’s next steps and rattling currency markets. The Bureau of Labor Statistics will release the April Consumer Price Index (CPI) report today at 12:30 GMT (8:30 a.m. EST), a high-impact data point that could sway the Federal Reserve’s rate outlook and shift momentum in the US Dollar. Forecast: Inflation likely to edge up again According to the Bureau of Labor Statistics, headline inflation is projected to come in at 2.4 per cent year-over-year in April, unchanged from March’s reading. However, on a month-over-month basis, prices are reportedly expected to rise by 0.3 per cent, reversing the 0.1 per cent decline seen in March. As per Bloomberg, core CPI, which excludes volatile food and energy costs is also forecast to climb 0.3 per cent from the previous month, keeping the annual rate steady at 2.8 per cent, the same as March when core inflation hit a four-year low. This view is echoed by a Bloomberg survey of economists, which forecasts a 0.3 per cent increase in both headline and core CPI in April. According to Bloomberg, the uptick marks a shift from March’s unexpected decline and signals that inflationary pressures are re-emerging as tariffs take hold. Trump tariffs fiasco President Trump’s “Liberation Day” announcement on April 2 unveiled sweeping tariffs on Chinese goods and several European imports. Although the administration later paused most new tariffs for 90 days, a 10 per cent duty on Chinese goods remains active and has started filtering through to prices. According to Bloomberg, categories like toys, apparel, and household goods, many of which are heavily reliant on Chinese supply chains—could begin to reflect price hikes in April’s data, even if the full impact is expected to hit harder in Q3. Fed takes a wait-and-watch approach During the Federal Reserve’s May 7 policy meeting, the central bank left interest rates unchanged at 4.25 per cent–4.50 per cent. Fed Chair Jerome Powell acknowledged that “the risks of higher inflation and unemployment have risen,” but emphasized that it was not yet time to alter the policy path. Powell noted that “near-term inflation expectations have increased due to tariffs” and that the Fed’s current stance allows room to observe how the data evolves, as reported by Reuters. Washington's trade deal with UK & China Adding complexity to the inflation outlook are recent US-China trade talks. Over the weekend, both sides announced progress in Geneva, agreeing to suspend some tariffs for 90 days. According to the joint statement, the US has cut tariffs from 145 per cent to 30 per cent, while China reduced duties from 125 per cent to 10 per cent. Meanwhile, the “reciprocal” tariff rate of 10 per cent on British goods remains unchanged, the UK will benefit from exemptions for steel and cars, as well as increased market access for agricultural exports. The deal also leaves room for further negotiation down the line This truce could ease pressure on global supply chains and retail importers, though its inflation-dampening effects are unlikely to appear in the April data. With inflation caught between tariffs and slowing demand, the April CPI report may prove pivotal, not just for monetary policy, but for global markets still trying to price in the true cost of Trump’s trade war.

US inflation seen picking up in April as Trump tariffs begin to bite

<div>Global banking regulators agreed to focus more on understanding the financial risks posed by climate change on May 13, despite some opposition from the United States, Reuters reported.</div>
<div></div>
<div>The oversight body of the Basel Committee on Banking Supervision convened to review its climate-related financial risk initiatives and decided to prioritise understanding the financial impact of extreme weather events, according to a statement by the Bank for International Settlements.</div>
<div></div>
<div>This decision comes as policymakers in Europe and the US debate the role of climate change in central bank policy. In Europe, policymakers have doubled down on efforts to address climate-related risks, with the European Central Bank (ECB) making management of climate risks a key priority, while the US efforts have been scaled back.&nbsp;</div>
<div></div>
<div>The group of central bank governors and heads of supervision, which make up the oversight body of the Basel Committee on Banking Supervision, also plans to release a voluntary framework for climate-related financial risks for jurisdictions to consider.</div>
<div></div>
<div>While the Basel Committee has no international authority or enforcement powers, its work on climate sets international standards which have a strong influence on national rule-making.</div>
<div></div>
<h2><span>US takes a step back</span></h2>
<div></div>
<div>While European and British regulators are moving forward with integrating climate risks into bank supervision, the US regulators like the Federal Reserve have taken a more cautious approach.&nbsp;</div>
<div></div>
<div>Recently, the US has seen significant pushback, with US President Trump and other Republican leaders criticising climate-focused policies. In a notable move, the Fed withdrew from the Network of Central Banks and Supervisors for Greening the Financial System in January, and the US Treasury Department has also backed away from climate principles for banks.</div>
<div></div>
<div>Analysts predict that the US regulatory bodies, including the Federal Deposit Insurance Corporation, may follow suit and pull out of these joint climate agreements in the near future.</div>
<div></div>
<div>(<em>With inputs from agencies</em>)</div>

Business & Economy: The Basel Committee has placed a significant focus on evaluating the financial repercussions of extreme weather events in its climate risk strategies.

Global banking regulators agreed to focus more on understanding the financial risks posed by climate change on May 13, despite some opposition from the United States, Reuters reported. The oversight body of the Basel Committee on Banking Supervision convened to review its climate-related financial risk initiatives and decided to prioritise understanding the financial impact of extreme weather events, according to a statement by the Bank for International Settlements. This decision comes as policymakers in Europe and the US debate the role of climate change in central bank policy. In Europe, policymakers have doubled down on efforts to address climate-related risks, with the European Central Bank (ECB) making management of climate risks a key priority, while the US efforts have been scaled back. The group of central bank governors and heads of supervision, which make up the oversight body of the Basel Committee on Banking Supervision, also plans to release a voluntary framework for climate-related financial risks for jurisdictions to consider. While the Basel Committee has no international authority or enforcement powers, its work on climate sets international standards which have a strong influence on national rule-making. US takes a step back While European and British regulators are moving forward with integrating climate risks into bank supervision, the US regulators like the Federal Reserve have taken a more cautious approach. Recently, the US has seen significant pushback, with US President Trump and other Republican leaders criticising climate-focused policies. In a notable move, the Fed withdrew from the Network of Central Banks and Supervisors for Greening the Financial System in January, and the US Treasury Department has also backed away from climate principles for banks. Analysts predict that the US regulatory bodies, including the Federal Deposit Insurance Corporation, may follow suit and pull out of these joint climate agreements in the near future. (With inputs from agencies)

Global banking regulators commit to addressing climate risk work

<p dir="ltr"><span>Indian capital markets logged their best single-day gains in over four years on May 12, driven by the announcement of a ceasefire agreement between India and Pakistan and favourable global cues. The easing of trade tensions between the US and China, following fresh tariff decisions, lifted investor sentiment across the board.</span></p>
<p dir="ltr"><span>The United States and China jointly declared a 90-day pause on a portion of their existing tariffs, as outlined in a statement released by both countries. The ceasefire between India and Pakistan has paved the way for a sharp rally of nearly 4 per cent in India&rsquo;s benchmark indices, Nifty50 and the Sensex, which closed at 24,924.70 and 82,429.90, respectively.</span></p>
<p dir="ltr"><span>The prime mover of the rally will be the foreign institutional investors (FII) who have been buying Indian equities for sixteen continuous days, except on May 09, when the India-Pakistan tensions escalated. All sectoral indices ended in the green.</span></p>
<p dir="ltr"><span>While India&rsquo;s volatility gauge plunged during Monday&rsquo;s intraday session. India VIX measures the market's expectation of future volatility based on the Nifty50 index options contracts. India VIX fell as much as 20.46 per cent to 17.79, the lowest level since the end of April, according to Bloomberg data.</span></p>
<p dir="ltr"><span>Shares of information technology (IT) companies were in focus as the Nifty IT index registered a surge of 6.7 per cent, thus recording its sharpest intraday rally in over five years.</span></p>
<p dir="ltr"><span>The sharp up move in IT stocks was triggered after the US decided to reduce tariffs on China to 30 per cent from 145 per cent for 90 days. Earlier, on April 7, 2020, the Nifty IT index soared 8.3 per cent in intraday trade.</span></p>
<p dir="ltr"><span>In the past one month, the Nifty IT index outperformed the market by surging 15 per cent, as compared to a 6.7 per cent rise in the Nifty 50. However, thus far in the current calendar year 2025, the IT index has slipped 12 per cent due to concerns over the recession in the US and the tariff war.</span></p>
<p dir="ltr"><span>Among sectoral indices, the Nifty Realty (up 5.93 per cent), followed by Metal (up 5.86 per cent) and IT indices, were the top gainers, while only the Pharma index (down 0.07 per cent) was trading in the red.</span></p>
<h2 dir="ltr"><span>Pakistan&rsquo;s stock market</span></h2>
<p dir="ltr"><span>The Karachi Stock Exchange 100 (KSE 100), the benchmark index of the Pakistan stock market, surged over 9 per cent on May 12, sparking a one-hour trading halt.</span></p>
<p dir="ltr"><span>Pakistan's stock exchange halted trading on Monday for an hour, according to an exchange notification, a Reuters report stated.</span></p>
<p dir="ltr"><span>According to data available on Bloomberg, the KSE 100 index jumped 9,751 points to 117,230. This comes after strong gains of nearly 4 per cent were seen in the May 09 trading session. With today's gains, the Pakistan benchmark index has again turned positive on a year-to-date basis.</span></p>
<p>&nbsp;</p>

Business & Economy: The ceasefire between India and Pakistan has paved the way for a sharp rally of nearly 4 per cent in India’s benchmark indices, Nifty50 and Sensex.

Indian capital markets logged their best single-day gains in over four years on May 12, driven by the announcement of a ceasefire agreement between India and Pakistan and favourable global cues. The easing of trade tensions between the US and China, following fresh tariff decisions, lifted investor sentiment across the board. The United States and China jointly declared a 90-day pause on a portion of their existing tariffs, as outlined in a statement released by both countries. The ceasefire between India and Pakistan has paved the way for a sharp rally of nearly 4 per cent in India’s benchmark indices, Nifty50 and the Sensex, which closed at 24,924.70 and 82,429.90, respectively. The prime mover of the rally will be the foreign institutional investors (FII) who have been buying Indian equities for sixteen continuous days, except on May 09, when the India-Pakistan tensions escalated. All sectoral indices ended in the green. While India’s volatility gauge plunged during Monday’s intraday session. India VIX measures the market's expectation of future volatility based on the Nifty50 index options contracts. India VIX fell as much as 20.46 per cent to 17.79, the lowest level since the end of April, according to Bloomberg data. Shares of information technology (IT) companies were in focus as the Nifty IT index registered a surge of 6.7 per cent, thus recording its sharpest intraday rally in over five years. The sharp up move in IT stocks was triggered after the US decided to reduce tariffs on China to 30 per cent from 145 per cent for 90 days. Earlier, on April 7, 2020, the Nifty IT index soared 8.3 per cent in intraday trade. In the past one month, the Nifty IT index outperformed the market by surging 15 per cent, as compared to a 6.7 per cent rise in the Nifty 50. However, thus far in the current calendar year 2025, the IT index has slipped 12 per cent due to concerns over the recession in the US and the tariff war. Among sectoral indices, the Nifty Realty (up 5.93 per cent), followed by Metal (up 5.86 per cent) and IT indices, were the top gainers, while only the Pharma index (down 0.07 per cent) was trading in the red. Pakistan’s stock market The Karachi Stock Exchange 100 (KSE 100), the benchmark index of the Pakistan stock market, surged over 9 per cent on May 12, sparking a one-hour trading halt. Pakistan's stock exchange halted trading on Monday for an hour, according to an exchange notification, a Reuters report stated. According to data available on Bloomberg, the KSE 100 index jumped 9,751 points to 117,230. This comes after strong gains of nearly 4 per cent were seen in the May 09 trading session. With today's gains, the Pakistan benchmark index has again turned positive on a year-to-date basis.

Stock markets rally amid India-Pakistan truce

<p dir="ltr"><span>ChatGPT maker OpenAI and Microsoft are reworking the terms of their multibillion-dollar partnership in high-stakes negotiations that will enable OpenAI to go public in the future while preserving the software giant&rsquo;s access to artificial intelligence (AI) technology, the&nbsp;</span><em>Financial Times</em><span><em> </em>reported Sunday.</span></p>
<p dir="ltr"><span>The outcome of these talks could reshape OpenAI's structure, moving it further from its roots as a not-for-profit research organisation into a hybrid business model. The adjustments to the terms of this partnership are pivotal for OpenAI&rsquo;s continued growth and its ability to tap into funding.</span></p>
<p dir="ltr"><span>A central point of contention in the ongoing negotiations is the equity stake Microsoft will hold in OpenAI&rsquo;s new for-profit entity in exchange for its investment. Since its initial $1 billion investment in OpenAI in 2019, Microsoft has provided further funding, bringing its total investment to around $13 billion. In return, the software giant has gained access to OpenAI&rsquo;s cutting-edge AI models and products, which are embedded in Microsoft&rsquo;s offerings. As OpenAI prepares for an IPO, Microsoft is seeking to maintain its substantial access to AI technology, especially as OpenAI&rsquo;s ambitions grow beyond current capabilities.</span></p>
<h2 dir="ltr"><span>Microsoft's priority: AI access</span></h2>
<p dir="ltr"><span>The discussions revolve around revising a key contract, which currently runs through 2030, that governs Microsoft&rsquo;s rights to OpenAI&rsquo;s intellectual property and the revenue share model. The </span><span><em>Financial Times</em> </span><span>reported that, according to sources familiar with the negotiations, Microsoft is willing to adjust its equity stake in OpenAI&rsquo;s for-profit business in exchange for continued access to AI models developed after 2030. This would allow OpenAI to continue evolving its technology while ensuring Microsoft remains a key player in OpenAI&rsquo;s future.</span></p>
<p dir="ltr"><span>At the heart of this restructuring is OpenAI&rsquo;s move toward a more conventional model, departing from its nonprofit origins. This shift is necessary to secure the funding needed to accelerate its work on artificial general intelligence (AGI), a field that could revolutionise numerous industries. </span></p>
<p dir="ltr"><span>OpenAI&rsquo;s leadership has been under pressure from investors to prioritise financial growth while still maintaining a social impact focus. Consequently, the company is in the process of converting its business arm into a public benefit corporation (PBC), which would allow it to raise additional funds while balancing profit motives with a public mission.</span></p>
<p dir="ltr"><span>However, this transition is not without its critics. Former employees and other stakeholders have expressed concerns that shifting toward a profit-driven model may compromise OpenAI&rsquo;s commitment to developing AI in a manner that benefits humanity as a whole. Despite these concerns, OpenAI executives remain confident that the changes will pave the way for continued innovation and long-term success.</span></p>
<h2 dir="ltr"><span>Balancing compliance and values</span></h2>
<p dir="ltr"><span>As OpenAI moves forward with these structural changes, it faces significant pressure from investors, including Microsoft, to ensure that its new structure meets financial expectations. This challenge gets amplified by OpenAI&rsquo;s need to comply with regulatory oversight. The proposed transition must be evaluated for compliance with laws ensuring that OpenAI&rsquo;s nonprofit mission remains the core value of the company, even as its business arm becomes more profit-oriented.</span></p>
<p dir="ltr"><span>The shift to a public benefit corporation model is seen as a strategic attempt to balance these competing interests. OpenAI&rsquo;s mission to advance AGI while creating value for investors is a delicate balancing act that could have lasting implications for the company&rsquo;s future. Industry experts warn that failing to implement the proposed changes could stall OpenAI&rsquo;s ability to attract future investment and hinder its long-term ambitions to compete with major tech players like Google.</span></p>
<p dir="ltr"><span>Ultimately, OpenAI&rsquo;s future hinges on its ability to satisfy both investors and critics, navigating the complexities of its evolving corporate structure while still fulfilling its mission. As Microsoft remains a crucial partner in this venture, the outcome of the ongoing negotiations will determine whether OpenAI can successfully transition to a public entity while safeguarding its core values and mission.</span></p>
<p>&nbsp;</p>

Business & Economy: The ongoing discussions could transform OpenAI's setup, shifting it from its original nonprofit research focus to a mixed business framework.

ChatGPT maker OpenAI and Microsoft are reworking the terms of their multibillion-dollar partnership in high-stakes negotiations that will enable OpenAI to go public in the future while preserving the software giant’s access to artificial intelligence (AI) technology, the Financial Times reported Sunday. The outcome of these talks could reshape OpenAI's structure, moving it further from its roots as a not-for-profit research organisation into a hybrid business model. The adjustments to the terms of this partnership are pivotal for OpenAI’s continued growth and its ability to tap into funding. A central point of contention in the ongoing negotiations is the equity stake Microsoft will hold in OpenAI’s new for-profit entity in exchange for its investment. Since its initial $1 billion investment in OpenAI in 2019, Microsoft has provided further funding, bringing its total investment to around $13 billion. In return, the software giant has gained access to OpenAI’s cutting-edge AI models and products, which are embedded in Microsoft’s offerings. As OpenAI prepares for an IPO, Microsoft is seeking to maintain its substantial access to AI technology, especially as OpenAI’s ambitions grow beyond current capabilities. Microsoft's priority: AI access The discussions revolve around revising a key contract, which currently runs through 2030, that governs Microsoft’s rights to OpenAI’s intellectual property and the revenue share model. The Financial Times reported that, according to sources familiar with the negotiations, Microsoft is willing to adjust its equity stake in OpenAI’s for-profit business in exchange for continued access to AI models developed after 2030. This would allow OpenAI to continue evolving its technology while ensuring Microsoft remains a key player in OpenAI’s future. At the heart of this restructuring is OpenAI’s move toward a more conventional model, departing from its nonprofit origins. This shift is necessary to secure the funding needed to accelerate its work on artificial general intelligence (AGI), a field that could revolutionise numerous industries. OpenAI’s leadership has been under pressure from investors to prioritise financial growth while still maintaining a social impact focus. Consequently, the company is in the process of converting its business arm into a public benefit corporation (PBC), which would allow it to raise additional funds while balancing profit motives with a public mission. However, this transition is not without its critics. Former employees and other stakeholders have expressed concerns that shifting toward a profit-driven model may compromise OpenAI’s commitment to developing AI in a manner that benefits humanity as a whole. Despite these concerns, OpenAI executives remain confident that the changes will pave the way for continued innovation and long-term success. Balancing compliance and values As OpenAI moves forward with these structural changes, it faces significant pressure from investors, including Microsoft, to ensure that its new structure meets financial expectations. This challenge gets amplified by OpenAI’s need to comply with regulatory oversight. The proposed transition must be evaluated for compliance with laws ensuring that OpenAI’s nonprofit mission remains the core value of the company, even as its business arm becomes more profit-oriented. The shift to a public benefit corporation model is seen as a strategic attempt to balance these competing interests. OpenAI’s mission to advance AGI while creating value for investors is a delicate balancing act that could have lasting implications for the company’s future. Industry experts warn that failing to implement the proposed changes could stall OpenAI’s ability to attract future investment and hinder its long-term ambitions to compete with major tech players like Google. Ultimately, OpenAI’s future hinges on its ability to satisfy both investors and critics, navigating the complexities of its evolving corporate structure while still fulfilling its mission. As Microsoft remains a crucial partner in this venture, the outcome of the ongoing negotiations will determine whether OpenAI can successfully transition to a public entity while safeguarding its core values and mission.

OpenAI negotiates terms with Microsoft for new funding and future IPO

<p dir="ltr"><span>In an announcement on May 11, US President Donald Trump revealed plans to sign an executive order that will drastically reduce the cost of prescription drugs for Americans.</span></p>
<p dir="ltr"><span>The order, set to be signed at 9:00 am (US EST) on May 12, will implement a &ldquo;most favoured nation&rdquo; (MFN) policy, which ties the US price of prescription drugs to the lowest price paid for the same medications by any other country in the world. Trump asserts that this move could cut drug prices by as much as 30 per cent to 80 per cent, offering relief to millions of American consumers who face some of the highest pharmaceutical costs globally.</span></p>
<p dir="ltr"><span>In a social media post on Truth Social, Trump framed the move as a long-overdue correction to what he described as a rigged system that has burdened US citizens with excessively high drug prices. He explained that, while drug prices in the US are sometimes five to ten times higher than in other nations, American consumers have had little to no recourse.</span></p>
<p dir="ltr"><span>Trump blamed pharmaceutical companies for using research and development (R&amp;D) costs as a rationale for the pricing disparity, suggesting that these costs were disproportionately &ldquo;borne by the &lsquo;suckers&rsquo; of America, alone&rdquo;.</span></p>
<p dir="ltr"><span>&ldquo;For many years, the world has wondered why prescription drugs and pharmaceuticals in the United States were so much higher in price than they were in any other nation,&rdquo; Trump said in his social media post. &ldquo;Sometimes being five to ten times more expensive than the same drug, manufactured in the exact same laboratory or plant, by the same company.&rdquo;</span></p>
<p dir="ltr"><span>The announcement came as a direct challenge to the pharmaceutical industry's lobbying efforts and an ongoing debate over US drug pricing. The industry, led by trade group PhRMA, has consistently argued against government-imposed price controls, claiming they undermine innovation and hurt patients by limiting access to new treatments. Despite this, Trump insisted that the pharmaceutical sector&rsquo;s arguments about the negative impact on innovation were embarrassing and unfounded.</span></p>
<p dir="ltr"><span>According to Trump, this policy would not only ensure fairness for American consumers but would also bring about global pricing changes, leading to higher prices abroad in order to &ldquo;equalise&rdquo; the global pharmaceutical market.</span></p>
<p dir="ltr"><span>&ldquo;This is the kind of fairness we&rsquo;ve been fighting for. The United States will finally be treated fairly,&rdquo; Trump said in his post. &ldquo;We will save trillions of dollars, and our citizens&rsquo; healthcare costs will be reduced by numbers never even thought of before.&rdquo;</span></p>
<h2 dir="ltr"><span>The background</span></h2>
<p dir="ltr"><span>The policy follows a pattern from Trump&rsquo;s first term, when he sought to tackle drug pricing by introducing a &ldquo;Most Favoured Nation&rdquo; policy that would have linked the prices of certain drugs to those paid by other developed nations. The initiative, which sought to lower the price of drugs administered in doctor&rsquo;s offices, was met with fierce opposition from the pharmaceutical industry and ultimately blocked by federal courts.</span></p>
<p dir="ltr"><span>The Biden administration chose not to pursue the policy further, opting instead to include drug price negotiations for Medicare under the Inflation Reduction Act of 2022.</span></p>
<p dir="ltr"><span>Trump&rsquo;s latest announcement appears to build upon his earlier efforts, proposing a more expansive application of MFN pricing that could impact a broader range of drugs.</span></p>
<p dir="ltr"><span>Despite the anticipated benefits for American consumers, the move has drawn sharp criticism from several quarters, including some senior Republicans and industry leaders.</span></p>
<p dir="ltr"><span>Trump, however, dismissed these concerns, suggesting that the pharmaceutical industry had long manipulated the system to its benefit and that the costs of R&amp;D were inflated as a means of justifying excessive drug prices. He emphasised that the policy would bring substantial savings to both the federal government and individual consumers, ultimately benefiting American taxpayers.</span></p>
<p dir="ltr"><span>While the policy&rsquo;s details remain unclear, it is widely expected that the MFN pricing would apply primarily to Medicare, the government health insurance program for seniors. Under the 2020 proposal, which was struck down by courts, Medicare would have paid the lowest price available for certain drugs among a group of 22 peer nations, including France and Japan.</span></p>
<p dir="ltr"><span>The US pharmaceutical industry, however, strongly opposed the idea of linking US drug prices to those in other countries, arguing that foreign governments impose strict price controls that suppress competition and innovation. Drugmakers contend that higher prices in the US help fund research and the development of new therapies. Critics of the MFN approach argue that it would lead to higher costs in other countries and could result in shortages of certain medications.</span></p>
<p dir="ltr"><span>The Trump administration&rsquo;s 2020 proposal faced a similar backlash and was eventually blocked by federal courts. However, Trump&rsquo;s team is determined to push the policy forward, citing the benefits to both American taxpayers and patients. Additionally, there is growing pressure within the administration to reduce the overall cost of prescription drugs, which remain one of the largest expenses for US households.</span></p>
<h2 dir="ltr"><span>Challenges ahead?</span></h2>
<p dir="ltr"><span>It remains to be seen whether Trump&rsquo;s new executive order will face similar legal challenges as its predecessor or whether it will be implemented without significant opposition. Experts warn that the road ahead could be fraught with legal hurdles, and some analysts remain sceptical about the effectiveness of such a policy.</span></p>
<p dir="ltr"><span>As the situation unfolds, the debate over drug pricing in the US is likely to intensify, with both sides of the argument preparing for a lengthy legal and political battle. Whether Trump&rsquo;s proposal succeeds in lowering costs for Americans remains uncertain, but one thing is clear: prescription drug prices will be a central issue for the foreseeable future.</span></p>
<p dir="ltr"><span>For now, Americans are left wondering whether the president&rsquo;s bold claims about cutting drug prices by as much as 80 per cent will materialise into a reality or if they will become yet another point of contention in the ongoing struggle over US healthcare reform.</span></p>
<p>(<em>With inputs from agencies</em>)</p>

Business & Economy: Trump asserts that this move could cut drug prices by as much as 30 per cent to 80 per cent, offering relief to millions of American consumers.

In an announcement on May 11, US President Donald Trump revealed plans to sign an executive order that will drastically reduce the cost of prescription drugs for Americans. The order, set to be signed at 9:00 am (US EST) on May 12, will implement a “most favoured nation” (MFN) policy, which ties the US price of prescription drugs to the lowest price paid for the same medications by any other country in the world. Trump asserts that this move could cut drug prices by as much as 30 per cent to 80 per cent, offering relief to millions of American consumers who face some of the highest pharmaceutical costs globally. In a social media post on Truth Social, Trump framed the move as a long-overdue correction to what he described as a rigged system that has burdened US citizens with excessively high drug prices. He explained that, while drug prices in the US are sometimes five to ten times higher than in other nations, American consumers have had little to no recourse. Trump blamed pharmaceutical companies for using research and development (R&D) costs as a rationale for the pricing disparity, suggesting that these costs were disproportionately “borne by the ‘suckers’ of America, alone”. “For many years, the world has wondered why prescription drugs and pharmaceuticals in the United States were so much higher in price than they were in any other nation,” Trump said in his social media post. “Sometimes being five to ten times more expensive than the same drug, manufactured in the exact same laboratory or plant, by the same company.” The announcement came as a direct challenge to the pharmaceutical industry's lobbying efforts and an ongoing debate over US drug pricing. The industry, led by trade group PhRMA, has consistently argued against government-imposed price controls, claiming they undermine innovation and hurt patients by limiting access to new treatments. Despite this, Trump insisted that the pharmaceutical sector’s arguments about the negative impact on innovation were embarrassing and unfounded. According to Trump, this policy would not only ensure fairness for American consumers but would also bring about global pricing changes, leading to higher prices abroad in order to “equalise” the global pharmaceutical market. “This is the kind of fairness we’ve been fighting for. The United States will finally be treated fairly,” Trump said in his post. “We will save trillions of dollars, and our citizens’ healthcare costs will be reduced by numbers never even thought of before.” The background The policy follows a pattern from Trump’s first term, when he sought to tackle drug pricing by introducing a “Most Favoured Nation” policy that would have linked the prices of certain drugs to those paid by other developed nations. The initiative, which sought to lower the price of drugs administered in doctor’s offices, was met with fierce opposition from the pharmaceutical industry and ultimately blocked by federal courts. The Biden administration chose not to pursue the policy further, opting instead to include drug price negotiations for Medicare under the Inflation Reduction Act of 2022. Trump’s latest announcement appears to build upon his earlier efforts, proposing a more expansive application of MFN pricing that could impact a broader range of drugs. Despite the anticipated benefits for American consumers, the move has drawn sharp criticism from several quarters, including some senior Republicans and industry leaders. Trump, however, dismissed these concerns, suggesting that the pharmaceutical industry had long manipulated the system to its benefit and that the costs of R&D were inflated as a means of justifying excessive drug prices. He emphasised that the policy would bring substantial savings to both the federal government and individual consumers, ultimately benefiting American taxpayers. While the policy’s details remain unclear, it is widely expected that the MFN pricing would apply primarily to Medicare, the government health insurance program for seniors. Under the 2020 proposal, which was struck down by courts, Medicare would have paid the lowest price available for certain drugs among a group of 22 peer nations, including France and Japan. The US pharmaceutical industry, however, strongly opposed the idea of linking US drug prices to those in other countries, arguing that foreign governments impose strict price controls that suppress competition and innovation. Drugmakers contend that higher prices in the US help fund research and the development of new therapies. Critics of the MFN approach argue that it would lead to higher costs in other countries and could result in shortages of certain medications. The Trump administration’s 2020 proposal faced a similar backlash and was eventually blocked by federal courts. However, Trump’s team is determined to push the policy forward, citing the benefits to both American taxpayers and patients. Additionally, there is growing pressure within the administration to reduce the overall cost of prescription drugs, which remain one of the largest expenses for US households. Challenges ahead? It remains to be seen whether Trump’s new executive order will face similar legal challenges as its predecessor or whether it will be implemented without significant opposition. Experts warn that the road ahead could be fraught with legal hurdles, and some analysts remain sceptical about the effectiveness of such a policy. As the situation unfolds, the debate over drug pricing in the US is likely to intensify, with both sides of the argument preparing for a lengthy legal and political battle. Whether Trump’s proposal succeeds in lowering costs for Americans remains uncertain, but one thing is clear: prescription drug prices will be a central issue for the foreseeable future. For now, Americans are left wondering whether the president’s bold claims about cutting drug prices by as much as 80 per cent will materialise into a reality or if they will become yet another point of contention in the ongoing struggle over US healthcare reform. (With inputs from agencies)

Donald Trump plans major move to cut drug prices by up to 80%

<div class="x_elementToProof" data-olk-copy-source="MessageBody">India has emerged as the global leader in both manufacturing and services activity, according to the Purchasing Managers&rsquo; Index (PMI) data released by J.P. Morgan for April 2025. With a manufacturing PMI of 58.2 and a services PMI of 58.7, India is outpacing both developed and emerging markets, signalling robust economic growth across multiple sectors.</div>
<div class="x_elementToProof" aria-hidden="true">&nbsp;</div>
<div class="x_elementToProof">The PMI is a crucial indicator of economic health, with values above 50 signifying expansion. As per J.P. Morgan, India&rsquo;s PMI figures in both sectors are the highest globally, reflecting strong demand and continued expansion in the country&rsquo;s private sector.</div>
<div class="x_elementToProof" aria-hidden="true">&nbsp;</div>
<div class="x_elementToProof">India&rsquo;s performance stands in stark contrast to other large economies. For example, China&rsquo;s manufacturing PMI, tracked by both Markit and the National Bureau of Statistics (NBS), stood at 50.4 and 49, respectively, indicating only moderate growth or contraction. Similarly, China&rsquo;s services PMI also lagged behind India, coming in at 50.7 (Markit) and 50.1 (NBS), compared to India&rsquo;s 58.7, highlighting India&rsquo;s significantly faster pace of growth.<br><br></div>
<div class="x_elementToProof">In other major economies, signs of sluggishness are evident. The US manufacturing PMI, as reported by ISM, was 48.7, signalling contraction, while its services PMI stood at 51.6, just above the expansion threshold. The Eurozone remains weak, with April&rsquo;s manufacturing PMI at 49 and services PMI at 50.1, both signalling sluggish growth. The UK and France also showed concerning numbers, with manufacturing PMIs at 45.4 (UK) and 48.7 (France), alongside services PMIs below 50, pointing to contraction.</div>
<h2 class="x_elementToProof"><b>Comparative outlooks from other institutions</b></h2>
<div class="x_elementToProof">India&rsquo;s resilience is further supported by forecasts from other major institutions. The International Monetary Fund (IMF) projects India&rsquo;s GDP growth at 6.8 per cent for FY25, higher than any major economy, reinforcing J.P. Morgan&rsquo;s confidence in India&rsquo;s economic strength. Similarly, the World Bank expects India&rsquo;s economy to continue its positive trajectory, with growth projected to remain above 6 per cent in the coming years. These forecasts underline India&rsquo;s consistent growth performance, despite global challenges.</div>
<h2 class="x_elementToProof"><b>Global context and challenges</b></h2>
<div class="x_elementToProof">Though India's global performance remains high, it faces challenges in the form of India-Pakistan tensions and the ongoing US tariff dispute. These geopolitical factors affected the global markets and India&rsquo;s external trade. However, as India continues to strengthen its position as a global manufacturing hub, particularly amid the US-China trade tensions, the country&rsquo;s favourable position as an alternative to China for manufacturing and exports has garnered significant attention.</div>

Business & Economy: The robust PMI figures reflect India's expanding economic activity across various sectors, highlighting its competitive edge in the global market landscape.

India has emerged as the global leader in both manufacturing and services activity, according to the Purchasing Managers’ Index (PMI) data released by J.P. Morgan for April 2025. With a manufacturing PMI of 58.2 and a services PMI of 58.7, India is outpacing both developed and emerging markets, signalling robust economic growth across multiple sectors. The PMI is a crucial indicator of economic health, with values above 50 signifying expansion. As per J.P. Morgan, India’s PMI figures in both sectors are the highest globally, reflecting strong demand and continued expansion in the country’s private sector. India’s performance stands in stark contrast to other large economies. For example, China’s manufacturing PMI, tracked by both Markit and the National Bureau of Statistics (NBS), stood at 50.4 and 49, respectively, indicating only moderate growth or contraction. Similarly, China’s services PMI also lagged behind India, coming in at 50.7 (Markit) and 50.1 (NBS), compared to India’s 58.7, highlighting India’s significantly faster pace of growth. In other major economies, signs of sluggishness are evident. The US manufacturing PMI, as reported by ISM, was 48.7, signalling contraction, while its services PMI stood at 51.6, just above the expansion threshold. The Eurozone remains weak, with April’s manufacturing PMI at 49 and services PMI at 50.1, both signalling sluggish growth. The UK and France also showed concerning numbers, with manufacturing PMIs at 45.4 (UK) and 48.7 (France), alongside services PMIs below 50, pointing to contraction. Comparative outlooks from other institutions India’s resilience is further supported by forecasts from other major institutions. The International Monetary Fund (IMF) projects India’s GDP growth at 6.8 per cent for FY25, higher than any major economy, reinforcing J.P. Morgan’s confidence in India’s economic strength. Similarly, the World Bank expects India’s economy to continue its positive trajectory, with growth projected to remain above 6 per cent in the coming years. These forecasts underline India’s consistent growth performance, despite global challenges. Global context and challenges Though India's global performance remains high, it faces challenges in the form of India-Pakistan tensions and the ongoing US tariff dispute. These geopolitical factors affected the global markets and India’s external trade. However, as India continues to strengthen its position as a global manufacturing hub, particularly amid the US-China trade tensions, the country’s favourable position as an alternative to China for manufacturing and exports has garnered significant attention.

India’s manufacturing and services activities tops global charts

<p class="x_elementToProof"><span data-olk-copy-source="MessageBody">In a significant diplomatic and economic development, the United States and China have announced &ldquo;substantial progress&rdquo; in trade talks held in Geneva on May 10&ndash;11, raising hopes of de-escalation in a tariff war that has rattled global markets for months.</span></p>
<p class="x_elementToProof"><span>Chinese Vice Premier He Lifeng, leading Beijing&rsquo;s delegation, said the talks with US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer were &ldquo;candid, in-depth, and constructive,&rdquo; according to Reuters. He added that both sides agreed to establish a formal consultation mechanism to address economic and trade issues of mutual concern.</span></p>
<p><span>Bessent told Reuters that President Donald Trump had been &ldquo;fully informed&rdquo; of the discussions and that a detailed joint statement would be released on Monday. &ldquo;We made substantial progress&hellip; in the spirit of cooperation, shared interest, and mutual respect,&rdquo; he said.</span></p>
<h2 class="x_elementToProof"><span><b>Trump&rsquo;s tariff saga</b></span></h2>
<p><span>This diplomatic thaw follows President Donald Trump&rsquo;s unexpected escalation earlier this year, when he slapped a 145 per cent tariff on a wide swath of Chinese imports, ranging from steel and electric vehicles to electronics, textiles, and rare earth metals. The US administration justified the move by declaring a national economic emergency, citing the ballooning $1.2 trillion trade deficit with China, according to the US Department of Commerce. In swift retaliation, China&rsquo;s Ministry of Commerce imposed reciprocal tariffs on key American exports, including agricultural produce, semiconductors, industrial machinery, and pharmaceuticals. While Beijing insisted it did not seek a trade war, Vice Premier He told Reuters that China was &ldquo;prepared to fight to the end.&rdquo;</span></p>
<p class="x_elementToProof"><span>The consequences were immediate and severe. Bloomberg Economics estimates that nearly $300 billion in cross-border trade was wiped out in just the first quarter of 2025, fuelling recession fears across global markets. The ripple effects hit multiple sectors hard. Technology giants such as Apple, NVIDIA, and Tesla suffered increased production costs and delays, with S&amp;P Global reporting that over 60 per cent of US electronics firms experienced severe supply chain disruptions by March 2025.&nbsp;</span></p>
<p class="x_elementToProof"><span>In the automotive sector, tit-for-tat tariffs on vehicles and components crushed exports on both sides, prompting several global manufacturers to relocate operations, according to Automotive News China. Even average American consumers weren&rsquo;t spared &mdash; prices for electronics, apparel, and furniture surged, much of it imported from China. In its April forecast, the International Monetary Fund warned that prolonged tariffs could push global inflation up by as much as 1.5 per cent in 2025.</span></p>
<h2 class="x_elementToProof"><span><b>A step towards stability?</b></span></h2>
<p><span>Despite deep-rooted differences, both delegations signalled optimism. &ldquo;This meeting has laid the foundation for resolving differences through equal-footed dialogue,&rdquo; He Lifeng said, as stated in Reuters. He also noted that China was ready to work with the US in expanding the list of cooperative outcomes and &ldquo;making the pie of mutual benefits bigger.&rdquo;</span></p>
<p><span>Greer acknowledged the tough negotiating style of the Chinese side and said the pace of consensus showed that &ldquo;perhaps the differences were not as great as previously thought,&rdquo; told to Reuters.</span></p>
<p class="x_elementToProof"><span>Both leaders praised the Swiss government for its hospitality. &ldquo;The venue helped facilitate the productivity we achieved,&rdquo; said Bessent, adding that further consultations would follow soon.</span></p>
<h2 class="x_elementToProof"><span><b>What lies ahead?</b></span></h2>
<p class="x_elementToProof"><span>According to Reuters, a joint statement outlining initial agreements and next steps is expected on Monday. Sources familiar with the talks say both sides have considered rolling back a portion of the February tariffs in exchange for mutual concessions on digital trade, intellectual property protections, and agricultural imports.</span></p>
<p class="x_elementToProof"><span>While it&rsquo;s too early to declare the trade war over, analysts see this weekend&rsquo;s progress as a pivotal turn. &ldquo;We may be witnessing the beginning of a recalibration in global trade dynamics,&rdquo; said Alicia Garc&iacute;a Herrero, Chief Economist for Asia Pacific at Natixis, quoted by Bloomberg.</span></p>
<p><span>The coming days will be crucial as the world waits for the official roadmap. For now, Geneva has offered a glimmer of hope &mdash; that diplomacy, not tariffs, may once again guide the world&rsquo;s two largest economies.</span></p>

Business & Economy: US Treasury Secretary Scott Bessent confirmed that President Trump was fully briefed, anticipating a detailed joint statement to be unveiled on Monday.

In a significant diplomatic and economic development, the United States and China have announced “substantial progress” in trade talks held in Geneva on May 10–11, raising hopes of de-escalation in a tariff war that has rattled global markets for months. Chinese Vice Premier He Lifeng, leading Beijing’s delegation, said the talks with US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer were “candid, in-depth, and constructive,” according to Reuters. He added that both sides agreed to establish a formal consultation mechanism to address economic and trade issues of mutual concern. Bessent told Reuters that President Donald Trump had been “fully informed” of the discussions and that a detailed joint statement would be released on Monday. “We made substantial progress… in the spirit of cooperation, shared interest, and mutual respect,” he said. Trump’s tariff saga This diplomatic thaw follows President Donald Trump’s unexpected escalation earlier this year, when he slapped a 145 per cent tariff on a wide swath of Chinese imports, ranging from steel and electric vehicles to electronics, textiles, and rare earth metals. The US administration justified the move by declaring a national economic emergency, citing the ballooning $1.2 trillion trade deficit with China, according to the US Department of Commerce. In swift retaliation, China’s Ministry of Commerce imposed reciprocal tariffs on key American exports, including agricultural produce, semiconductors, industrial machinery, and pharmaceuticals. While Beijing insisted it did not seek a trade war, Vice Premier He told Reuters that China was “prepared to fight to the end.” The consequences were immediate and severe. Bloomberg Economics estimates that nearly $300 billion in cross-border trade was wiped out in just the first quarter of 2025, fuelling recession fears across global markets. The ripple effects hit multiple sectors hard. Technology giants such as Apple, NVIDIA, and Tesla suffered increased production costs and delays, with S&P Global reporting that over 60 per cent of US electronics firms experienced severe supply chain disruptions by March 2025. In the automotive sector, tit-for-tat tariffs on vehicles and components crushed exports on both sides, prompting several global manufacturers to relocate operations, according to Automotive News China. Even average American consumers weren’t spared — prices for electronics, apparel, and furniture surged, much of it imported from China. In its April forecast, the International Monetary Fund warned that prolonged tariffs could push global inflation up by as much as 1.5 per cent in 2025. A step towards stability? Despite deep-rooted differences, both delegations signalled optimism. “This meeting has laid the foundation for resolving differences through equal-footed dialogue,” He Lifeng said, as stated in Reuters. He also noted that China was ready to work with the US in expanding the list of cooperative outcomes and “making the pie of mutual benefits bigger.” Greer acknowledged the tough negotiating style of the Chinese side and said the pace of consensus showed that “perhaps the differences were not as great as previously thought,” told to Reuters. Both leaders praised the Swiss government for its hospitality. “The venue helped facilitate the productivity we achieved,” said Bessent, adding that further consultations would follow soon. What lies ahead? According to Reuters, a joint statement outlining initial agreements and next steps is expected on Monday. Sources familiar with the talks say both sides have considered rolling back a portion of the February tariffs in exchange for mutual concessions on digital trade, intellectual property protections, and agricultural imports. While it’s too early to declare the trade war over, analysts see this weekend’s progress as a pivotal turn. “We may be witnessing the beginning of a recalibration in global trade dynamics,” said Alicia García Herrero, Chief Economist for Asia Pacific at Natixis, quoted by Bloomberg. The coming days will be crucial as the world waits for the official roadmap. For now, Geneva has offered a glimmer of hope — that diplomacy, not tariffs, may once again guide the world’s two largest economies.

US-China trade talks mark ‘substantial progress’ following months of tariff tensions

<p><span data-olk-copy-source="MessageBody">Donald Trump&rsquo;s return to the White House has shaken the foundations of the global economy.</span></p>
<p><span>In April 2025, the US President launched a sweeping tariff offensive, imposing import duties on major trade partners in a dramatic bid to realign global commerce. The tariffs include a 10 per cent blanket duty on all US imports and a 145 per cent levy on Chinese goods&mdash;marking the harshest hit on America&rsquo;s top trading partner. Additionally, tariffs include 60 per cent on Mexican products, 45 per cent on European Union imports, 35 per cent on Canadian goods, and 25 per cent on South Korean exports.</span><span></span></p>
<h2><span><b>Recession risk surges, says Reuters poll</b></span></h2>
<p><span>A Reuters poll conducted from April 1 to 28 among more than 300 economists across 50 countries painted a grim picture. Sixty percent of respondents said the risk of a global recession this year is &ldquo;high&rdquo; or &ldquo;very high.&rdquo; Only 66 economists believed the risk was low, including four who considered it &ldquo;very low.&rdquo;</span></p>
<p><span>The poll also revealed that none of the economists surveyed believed the tariffs had a positive impact on global business sentiment. A staggering 92 per cent said the impact was negative, while only 8 per cent considered it neutral&mdash;mostly from India and other emerging economies.</span></p>
<p><span>The 2025 global growth forecast has been downgraded from 3.0 per cent to 2.7 per cent, with 28 out of 48 individual country projections revised downward. Economies like Mexico and Canada were among the hardest hit, with Mexico&rsquo;s growth forecast cut to 0.2 per cent and Canada&rsquo;s to 1.2 per cent, according to the Reuters survey.</span></p>
<p><span>In contrast, growth projections for China and Russia remained steady at 4.5 per cent and 1.7 per cent, respectively&mdash;indicating that some economies may be better positioned to weather the tariff storm.</span><span></span></p>
<h2><span><b>Small businesses raise red flags</b></span></h2>
<p><span>The US Chamber of Commerce, one of the country&rsquo;s most influential business groups, sent a formal letter to the White House warning that continued tariff hikes could cause &ldquo;irreparable harm&rdquo; to small businesses and push the economy into recession, as stated in a Reuters report.</span></p>
<p><span>Addressed to Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer, the letter urged immediate tariff relief.</span></p>
<p><span>&ldquo;Higher costs and disrupted supply chains are endangering small businesses across America,&rdquo; said Suzanne P. Clark, President and CEO of the Chamber, in a statement released on May 2. She added, &ldquo;Whether it is coffee, bananas, cocoa, minerals or numerous other products, the reality is certain things just can&rsquo;t be produced in the United States. Tariffs on such essentials only raise costs for struggling families.&rdquo;</span></p>
<p><span>The Chamber requested automatic exclusions for small business importers, a system for case-by-case tariff exemptions where American jobs are at risk, and tariff waivers on goods not readily available in the US.</span><span></span></p>
<h2><span><b>Trump admin: No recession, just renegotiation</b></span></h2>
<p><span>Despite mounting concerns, US Treasury Secretary Scott Bessent insisted that the economy is not in recession, according to Reuters. Testifying before the House Appropriations Committee on May 6, Bessent claimed that while first-quarter GDP showed a dip, he expected upward revisions in the coming weeks. He also revealed that the US was in talks with 17 countries to secure new trade deals, though he admitted that no discussions had yet begun with China.</span></p>
<p><span>Still, official numbers suggest early signs of distress. According to the US Commerce Department&rsquo;s April 2025 report, the country&rsquo;s GDP contracted by 0.3 per cent in the first quarter&mdash;the first economic shrinkage in three years. Imports dropped 2.8 per cent, reflecting weakening domestic demand, while exports fell 3.6 per cent, indicating reduced global competitiveness due to retaliatory tariffs.</span></p>
<p><span>In response, China introduced steep counter-tariffs, prompting multinational corporations to slash revenue forecasts and stall expansion plans. Although the White House has announced a 90-day pause on the most aggressive tariffs, analysts say the damage to business confidence is already done.</span></p>
<p><span>&ldquo;It&rsquo;s hard for companies to plan even three months ahead,&rdquo; said James Rossiter, Head of Global Macro Strategy at TD Securities. &ldquo;Let alone envision what five years might look like,&rdquo; as quoted by Reuters in April.</span><span></span></p>
<h2><span><b>IMF narrates different story</b></span></h2>
<p><span>Amid the uncertainty, the International Monetary Fund (IMF) offered a more measured outlook, according to a Reuters report. In its April 17 global forecast, the IMF acknowledged that tariff-related uncertainty is &ldquo;literally off the charts&rdquo; and warned of a growing erosion of trust between nations. However, it stopped short of declaring a global recession.</span></p>
<p><span>&ldquo;Our new growth projections will include notable markdowns, but not recession,&rdquo; said IMF Managing Director Kristalina Georgieva, speaking at the IMF Spring Meetings in Washington. She emphasized that global share prices had suffered amid heightened trade tensions and called for coordinated policy responses to restore stability.</span></p>
<p><span>&ldquo;A better balanced, more resilient world economy is within reach. We must act to secure it,&rdquo; Georgieva urged. She called on Europe to eliminate restrictions on internal trade in services, encouraged China to expand its social safety net to reduce precautionary saving, and urged the US to rein in its growing public debt.</span></p>
<p><span>Meanwhile, the World Trade Organization (WTO) projected a decline in global trade volumes due to the Trump tariffs. The European Central Bank reduced its key interest rate, citing growing trade tensions, while the Bank of England warned of increased risks to global growth and financial stability&mdash;developments widely reported by Bloomberg and Reuters.</span><span></span></p>
<h2><span><b>From Inflation Control to Stagflation Fears</b></span></h2>
<p><span>As inflationary pressures mount due to higher import costs, economists are now warning of stagflation&mdash;a dangerous blend of slow growth, rising unemployment, and persistent inflation. According to the Reuters survey, 19 out of 29 major central banks are expected to miss their inflation targets in 2025, and more than half may continue to miss them into 2026.</span><span></span></p>
<h2><span><b>The Road Ahead</b></span></h2>
<p><span>As negotiations inch forward, the global economy stands at a crossroads. Trump&rsquo;s tariffs have disrupted a fragile post-pandemic recovery, spooked markets, and reignited fears of global economic disintegration. The long-term consequences may extend far beyond trade balances&mdash;impacting jobs, inflation, and investor confidence for years to come.</span></p>

Business & Economy: In April 2025, the US President launched a sweeping tariff offensive, imposing import duties on major trade partners in a dramatic bid to realign global commerce.

Donald Trump’s return to the White House has shaken the foundations of the global economy. In April 2025, the US President launched a sweeping tariff offensive, imposing import duties on major trade partners in a dramatic bid to realign global commerce. The tariffs include a 10 per cent blanket duty on all US imports and a 145 per cent levy on Chinese goods—marking the harshest hit on America’s top trading partner. Additionally, tariffs include 60 per cent on Mexican products, 45 per cent on European Union imports, 35 per cent on Canadian goods, and 25 per cent on South Korean exports. Recession risk surges, says Reuters poll A Reuters poll conducted from April 1 to 28 among more than 300 economists across 50 countries painted a grim picture. Sixty percent of respondents said the risk of a global recession this year is “high” or “very high.” Only 66 economists believed the risk was low, including four who considered it “very low.” The poll also revealed that none of the economists surveyed believed the tariffs had a positive impact on global business sentiment. A staggering 92 per cent said the impact was negative, while only 8 per cent considered it neutral—mostly from India and other emerging economies. The 2025 global growth forecast has been downgraded from 3.0 per cent to 2.7 per cent, with 28 out of 48 individual country projections revised downward. Economies like Mexico and Canada were among the hardest hit, with Mexico’s growth forecast cut to 0.2 per cent and Canada’s to 1.2 per cent, according to the Reuters survey. In contrast, growth projections for China and Russia remained steady at 4.5 per cent and 1.7 per cent, respectively—indicating that some economies may be better positioned to weather the tariff storm. Small businesses raise red flags The US Chamber of Commerce, one of the country’s most influential business groups, sent a formal letter to the White House warning that continued tariff hikes could cause “irreparable harm” to small businesses and push the economy into recession, as stated in a Reuters report. Addressed to Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer, the letter urged immediate tariff relief. “Higher costs and disrupted supply chains are endangering small businesses across America,” said Suzanne P. Clark, President and CEO of the Chamber, in a statement released on May 2. She added, “Whether it is coffee, bananas, cocoa, minerals or numerous other products, the reality is certain things just can’t be produced in the United States. Tariffs on such essentials only raise costs for struggling families.” The Chamber requested automatic exclusions for small business importers, a system for case-by-case tariff exemptions where American jobs are at risk, and tariff waivers on goods not readily available in the US. Trump admin: No recession, just renegotiation Despite mounting concerns, US Treasury Secretary Scott Bessent insisted that the economy is not in recession, according to Reuters. Testifying before the House Appropriations Committee on May 6, Bessent claimed that while first-quarter GDP showed a dip, he expected upward revisions in the coming weeks. He also revealed that the US was in talks with 17 countries to secure new trade deals, though he admitted that no discussions had yet begun with China. Still, official numbers suggest early signs of distress. According to the US Commerce Department’s April 2025 report, the country’s GDP contracted by 0.3 per cent in the first quarter—the first economic shrinkage in three years. Imports dropped 2.8 per cent, reflecting weakening domestic demand, while exports fell 3.6 per cent, indicating reduced global competitiveness due to retaliatory tariffs. In response, China introduced steep counter-tariffs, prompting multinational corporations to slash revenue forecasts and stall expansion plans. Although the White House has announced a 90-day pause on the most aggressive tariffs, analysts say the damage to business confidence is already done. “It’s hard for companies to plan even three months ahead,” said James Rossiter, Head of Global Macro Strategy at TD Securities. “Let alone envision what five years might look like,” as quoted by Reuters in April. IMF narrates different story Amid the uncertainty, the International Monetary Fund (IMF) offered a more measured outlook, according to a Reuters report. In its April 17 global forecast, the IMF acknowledged that tariff-related uncertainty is “literally off the charts” and warned of a growing erosion of trust between nations. However, it stopped short of declaring a global recession. “Our new growth projections will include notable markdowns, but not recession,” said IMF Managing Director Kristalina Georgieva, speaking at the IMF Spring Meetings in Washington. She emphasized that global share prices had suffered amid heightened trade tensions and called for coordinated policy responses to restore stability. “A better balanced, more resilient world economy is within reach. We must act to secure it,” Georgieva urged. She called on Europe to eliminate restrictions on internal trade in services, encouraged China to expand its social safety net to reduce precautionary saving, and urged the US to rein in its growing public debt. Meanwhile, the World Trade Organization (WTO) projected a decline in global trade volumes due to the Trump tariffs. The European Central Bank reduced its key interest rate, citing growing trade tensions, while the Bank of England warned of increased risks to global growth and financial stability—developments widely reported by Bloomberg and Reuters. From Inflation Control to Stagflation Fears As inflationary pressures mount due to higher import costs, economists are now warning of stagflation—a dangerous blend of slow growth, rising unemployment, and persistent inflation. According to the Reuters survey, 19 out of 29 major central banks are expected to miss their inflation targets in 2025, and more than half may continue to miss them into 2026. The Road Ahead As negotiations inch forward, the global economy stands at a crossroads. Trump’s tariffs have disrupted a fragile post-pandemic recovery, spooked markets, and reignited fears of global economic disintegration. The long-term consequences may extend far beyond trade balances—impacting jobs, inflation, and investor confidence for years to come.

Trump tariffs to trigger global recession? Reuters survey says…

<div class="x_elementToProof" data-olk-copy-source="MessageBody">In a provocative move ahead of crucial trade talks in Geneva, US President Donald Trump announced that an 80 per cent tariff on Chinese goods &ldquo;seems right,&rdquo; marking the first time he has floated a specific figure since his administration imposed sweeping levies of up to 145 per cent on imports from China. The statement, posted on Trump&rsquo;s Truth Social account on May 9, comes just hours before US Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer meet Chinese economic chief He Lifeng in Switzerland, in what officials are calling a tentative first step toward resolving deep-rooted trade tensions between the world&rsquo;s two largest economies.</div>
<div class="x_elementToProof" data-olk-copy-source="MessageBody"></div>
<div class="x_elementToProof">&ldquo;China should open up its market to the USA,&nbsp;it would be so good for them!!! Closed markets don&rsquo;t work anymore!!!&rdquo; Trump wrote. He added, &ldquo;80% tariff on China seems right. Up to Scott B,&rdquo; signalling&nbsp;his delegation to explore the feasibility of this new benchmark. According to Reuters, this is Trump&rsquo;s first public suggestion of a specific alternative to the existing tariff structure, which has drawn criticism from industry leaders and allies alike for disrupting global supply chains. Financial markets responded swiftly, with US stock futures dipping and the dollar weakening in Europe before stabilising later in the day.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Speaking from the Oval Office on May 9, Trump said the US would maintain a baseline tariff of 10 per cent on imports even after trade deals are struck, allowing exemptions only for countries offering &ldquo;significant trade terms.&rdquo; He suggested that new trade agreements are on the horizon, stating, &ldquo;We always have a baseline of 10%,&rdquo; and hinted that Bessent had been given room to negotiate down from the current tariff ceiling. The Geneva meeting represents the first face-to-face encounter between US and Chinese trade officials since Trump returned to the White House.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Since taking office for a second term, Trump has escalated his trade offensive, slapping 145 per cent average tariffs on Chinese imports, adding to the tariffs imposed during his first term and those maintained by the Biden administration. In retaliation, China has raised its tariffs on US goods to as high as 125 per cent and imposed export restrictions on rare earth elements vital to sectors like defence, electronics, and green energy. Beijing has also targeted high-profile American exports such as soybeans and liquefied natural gas, intensifying the economic standoff.</div>
<h2 class="x_elementToProof"><b>Geneva Talks: First step or false start?</b></h2>
<div class="x_elementToProof">The US-China trade talks in Geneva are taking place today, Saturday, May 10, 2025. This meeting marks the first direct negotiation between top officials from both nations since Trump returned to the presidency. US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are representing Washington, while Chinese Vice Premier He Lifeng is leading Beijing&rsquo;s delegation. The talks aim to reopen stalled economic dialogue without preconditions, according to the US Treasury Department&mdash;a move interpreted by analysts as a cautious attempt to de-escalate.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">However, the context remains tense. Trump&rsquo;s public push for an 80 per cent tariff, despite being a step down from the current 145 per cent, may complicate diplomatic efforts. China&rsquo;s reciprocal tariffs of up to 125 per cent and strategic export curbs on rare earth materials continue to set a combative tone. Whether today&rsquo;s talks lead to substantive progress or serve as a diplomatic reset remains uncertain.</div>
<h2 class="x_elementToProof"><b>US-China trade dependency</b></h2>
<div class="x_elementToProof">Despite the political posturing, economic data paints a picture of deep interdependence between the two superpowers. According to the US Census Bureau, in 2023, the US imported $427 billion worth of goods from China, making it the country&rsquo;s third-largest trading partner after Mexico and Canada. At the same time, US exports to China totalled&nbsp;$148 billion, with key outbound products including soybeans, semiconductors, aircraft, and LNG.</div>
<div class="x_elementToProof">From Beijing&rsquo;s side, the US was China&rsquo;s second-largest export market in 2023, accounting for around 15 per cent of its total exports, according to China&rsquo;s General Administration of Customs. This mutual reliance complicates any attempt at economic decoupling.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Whether Geneva will mark a turning point or simply another headline in the US-China economic standoff remains to be seen. But what is clear is that decisions taken in this weekend&rsquo;s meeting could have far-reaching implications for global trade flows, supply chains, and investor confidence.</div>
<div class="x_elementToProof"></div>

Business & Economy: Trump makes a huge statement ahead of the US-China critical trade meeting in Switzerland on May 10.

In a provocative move ahead of crucial trade talks in Geneva, US President Donald Trump announced that an 80 per cent tariff on Chinese goods “seems right,” marking the first time he has floated a specific figure since his administration imposed sweeping levies of up to 145 per cent on imports from China. The statement, posted on Trump’s Truth Social account on May 9, comes just hours before US Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer meet Chinese economic chief He Lifeng in Switzerland, in what officials are calling a tentative first step toward resolving deep-rooted trade tensions between the world’s two largest economies. “China should open up its market to the USA, it would be so good for them!!! Closed markets don’t work anymore!!!” Trump wrote. He added, “80% tariff on China seems right. Up to Scott B,” signalling his delegation to explore the feasibility of this new benchmark. According to Reuters, this is Trump’s first public suggestion of a specific alternative to the existing tariff structure, which has drawn criticism from industry leaders and allies alike for disrupting global supply chains. Financial markets responded swiftly, with US stock futures dipping and the dollar weakening in Europe before stabilising later in the day. Speaking from the Oval Office on May 9, Trump said the US would maintain a baseline tariff of 10 per cent on imports even after trade deals are struck, allowing exemptions only for countries offering “significant trade terms.” He suggested that new trade agreements are on the horizon, stating, “We always have a baseline of 10%,” and hinted that Bessent had been given room to negotiate down from the current tariff ceiling. The Geneva meeting represents the first face-to-face encounter between US and Chinese trade officials since Trump returned to the White House. Since taking office for a second term, Trump has escalated his trade offensive, slapping 145 per cent average tariffs on Chinese imports, adding to the tariffs imposed during his first term and those maintained by the Biden administration. In retaliation, China has raised its tariffs on US goods to as high as 125 per cent and imposed export restrictions on rare earth elements vital to sectors like defence, electronics, and green energy. Beijing has also targeted high-profile American exports such as soybeans and liquefied natural gas, intensifying the economic standoff. Geneva Talks: First step or false start? The US-China trade talks in Geneva are taking place today, Saturday, May 10, 2025. This meeting marks the first direct negotiation between top officials from both nations since Trump returned to the presidency. US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are representing Washington, while Chinese Vice Premier He Lifeng is leading Beijing’s delegation. The talks aim to reopen stalled economic dialogue without preconditions, according to the US Treasury Department—a move interpreted by analysts as a cautious attempt to de-escalate. However, the context remains tense. Trump’s public push for an 80 per cent tariff, despite being a step down from the current 145 per cent, may complicate diplomatic efforts. China’s reciprocal tariffs of up to 125 per cent and strategic export curbs on rare earth materials continue to set a combative tone. Whether today’s talks lead to substantive progress or serve as a diplomatic reset remains uncertain. US-China trade dependency Despite the political posturing, economic data paints a picture of deep interdependence between the two superpowers. According to the US Census Bureau, in 2023, the US imported $427 billion worth of goods from China, making it the country’s third-largest trading partner after Mexico and Canada. At the same time, US exports to China totalled $148 billion, with key outbound products including soybeans, semiconductors, aircraft, and LNG. From Beijing’s side, the US was China’s second-largest export market in 2023, accounting for around 15 per cent of its total exports, according to China’s General Administration of Customs. This mutual reliance complicates any attempt at economic decoupling. Whether Geneva will mark a turning point or simply another headline in the US-China economic standoff remains to be seen. But what is clear is that decisions taken in this weekend’s meeting could have far-reaching implications for global trade flows, supply chains, and investor confidence.

Trump advises Bessent to keep the 10% tariff baseline ahead of the US-China Geneva talks

<div class="x_elementToProof" data-olk-copy-source="MessageBody">China&rsquo;s economy is showing a fresh sign of deflationary strain.&nbsp;According to data from the National Bureau of Statistics,&nbsp;as reported by Reuters, consumer prices fell for a third consecutive month in April. This highlights growing economic uncertainty as the US-China trade war escalates.</div>
<div class="x_elementToProof">The Consumer Price Index (CPI) dropped 0.1 per cent year-on-year, mirroring the decline in March and aligning with economists&rsquo; forecasts. On a monthly basis, CPI edged up slightly by 0.1 per cent, reversing a 0.4 per cent fall in the previous month. Meanwhile, the Producer Price Index (PPI), which tracks the cost of goods at the factory gate, fell 2.7 per cent year-on-year, deepening from a 2.5 per cent decline in March. The continued drop in prices signals weak domestic demand and adds to the fear that the world&rsquo;s second-largest economy is sliding deeper into deflation.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">This economic fragility of China comes at a time when Beijing is facing intensifying trade tensions with Washington.</div>
<h2 class="x_elementToProof"><b>US-China trade talks resume amid fresh tariff threats</b><b></b></h2>
<div class="x_elementToProof">On May 9, 2025, just a day before the Geneva summit, US President Donald Trump reaffirmed his administration&rsquo;s commitment to maintaining a baseline 10 per cent tariff on imports, even after trade deals are finalised. He also suggested the possibility of increasing tariffs on Chinese goods to 80 per cent, a reduction from the previously imposed 145 per cent levies. These statements set the tone for the high-stakes trade talks scheduled for May 10 in Geneva between US Treasury Secretary Scott Bessent, Chief Trade Negotiator Jamieson Greer, and China&rsquo;s Vice Premier He Lifeng. The discussions mark the first formal engagement between the two nations since the escalation of the tariff war earlier this year.</div>
<div class="x_elementToProof">The backdrop to these talks is a series of escalating trade measures. In April 2025, President Trump imposed a 145 per cent&nbsp;tariff on Chinese imports, citing concerns over trade imbalances and national security. China swiftly retaliated with a 125 per cent tariff on US goods, leading to a significant downturn in bilateral trade. Despite the tensions, both countries have expressed a cautious willingness to return to the negotiating table, with China emphasising&nbsp;the need for &ldquo;equal consultation&rdquo; and mutual respect in resolving trade disputes.</div>
<h2 class="x_elementToProof"><b>Impact of the Trade War on China</b></h2>
<div class="x_elementToProof">The ongoing trade tensions have had a tangible impact on China&rsquo;s economy. The services sector, which makes up a significant portion of the country&rsquo;s GDP, is showing signs of slowdown. According to a Reuters report published on May 7, China&rsquo;s Caixin/S&amp;P Global Services Purchasing Managers&rsquo; Index (PMI) &nbsp;slipped to 50.7 in April from 51.9 in March, while the official services PMI dipped to 50.1, just above the contraction line. Meanwhile, exports to the US fell sharply, dropping 17.6 per cent month-on-month from $40.1 billion in March to $33.0 billion in April, marking the lowest level in five years. In response, the People&rsquo;s Bank of China (PBOC) announced a set of monetary easing measures by cutting the seven-day reverse repo rate by 10 basis points to 1.40 per cent and lowering the reserve requirement ratio by 50 basis points, expected to inject about 1 trillion yuan ($138 billion) into the economy.</div>
<div class="x_elementToProof"></div>

Business & Economy: Deflation concerns deepen in China as consumer prices fall for the third consecutive month. This comes ahead of the US-China trade meet in Geneva on May 10.

China’s economy is showing a fresh sign of deflationary strain. According to data from the National Bureau of Statistics, as reported by Reuters, consumer prices fell for a third consecutive month in April. This highlights growing economic uncertainty as the US-China trade war escalates. The Consumer Price Index (CPI) dropped 0.1 per cent year-on-year, mirroring the decline in March and aligning with economists’ forecasts. On a monthly basis, CPI edged up slightly by 0.1 per cent, reversing a 0.4 per cent fall in the previous month. Meanwhile, the Producer Price Index (PPI), which tracks the cost of goods at the factory gate, fell 2.7 per cent year-on-year, deepening from a 2.5 per cent decline in March. The continued drop in prices signals weak domestic demand and adds to the fear that the world’s second-largest economy is sliding deeper into deflation. This economic fragility of China comes at a time when Beijing is facing intensifying trade tensions with Washington. US-China trade talks resume amid fresh tariff threats On May 9, 2025, just a day before the Geneva summit, US President Donald Trump reaffirmed his administration’s commitment to maintaining a baseline 10 per cent tariff on imports, even after trade deals are finalised. He also suggested the possibility of increasing tariffs on Chinese goods to 80 per cent, a reduction from the previously imposed 145 per cent levies. These statements set the tone for the high-stakes trade talks scheduled for May 10 in Geneva between US Treasury Secretary Scott Bessent, Chief Trade Negotiator Jamieson Greer, and China’s Vice Premier He Lifeng. The discussions mark the first formal engagement between the two nations since the escalation of the tariff war earlier this year. The backdrop to these talks is a series of escalating trade measures. In April 2025, President Trump imposed a 145 per cent tariff on Chinese imports, citing concerns over trade imbalances and national security. China swiftly retaliated with a 125 per cent tariff on US goods, leading to a significant downturn in bilateral trade. Despite the tensions, both countries have expressed a cautious willingness to return to the negotiating table, with China emphasising the need for “equal consultation” and mutual respect in resolving trade disputes. Impact of the Trade War on China The ongoing trade tensions have had a tangible impact on China’s economy. The services sector, which makes up a significant portion of the country’s GDP, is showing signs of slowdown. According to a Reuters report published on May 7, China’s Caixin/S&P Global Services Purchasing Managers’ Index (PMI) slipped to 50.7 in April from 51.9 in March, while the official services PMI dipped to 50.1, just above the contraction line. Meanwhile, exports to the US fell sharply, dropping 17.6 per cent month-on-month from $40.1 billion in March to $33.0 billion in April, marking the lowest level in five years. In response, the People’s Bank of China (PBOC) announced a set of monetary easing measures by cutting the seven-day reverse repo rate by 10 basis points to 1.40 per cent and lowering the reserve requirement ratio by 50 basis points, expected to inject about 1 trillion yuan ($138 billion) into the economy.

China faces deepening deflation as consumer prices fall for third month due to US trade strain

Is America's greatest fear finally coming true? America's biggest financial weapon - the US Dollar — is now being directly challenged by the new gold-backed Chinese Yuan. In this next report, we decode if the dollar's reserve status is being challenged in a changing global financial order.

Safe-haven status of US treasuries & Dollar reversing?

<p><span data-olk-copy-source="MailCompose">As Republicans push to finalise President Donald Trump&rsquo;s ambitious $4.5 trillion tax cut plan, the State and Local Tax (SALT) deduction cap has emerged as a central flashpoint dividing the party. At the heart of the uproar is a policy first enacted by Republicans in 2017 &mdash; and now fiercely opposed by moderates, the Grand Old Party's lawmakers and Democrats alike.</span><span></span></p>
<h2><span><b>What is the SALT deduction?</b></span></h2>
<p><span>The SALT deduction allows taxpayers to subtract certain state and local taxes,&nbsp;such as property, income, and sales taxes,&nbsp;from their federal tax liability. Prior to 2017, there was no cap on this deduction. But under the Tax Cuts and Jobs Act, passed solely with Republican support during the Trump administration, a cap of $10,000 was introduced. This move significantly affected taxpayers in high-tax states like New York, California, and New Jersey.</span></p>
<p><span>According to the Tax Policy Center, nearly 11 million households lost the full benefit of the SALT deduction after the cap was introduced in 2018. The Congressional Budget Office (CBO) estimates that the cap generated about $668 billion in federal revenue over 10 years.</span><span></span></p>
<h2><span><b>Jeffries calls GOP SALT strategy &ldquo;Phony&rdquo;</b></span></h2>
<p><span>Democrats argue that the SALT cap disproportionately penalises&nbsp;blue-state taxpayers and should simply be allowed to expire at the end of 2025. Jeffries has ridiculed the Republican effort to repackage their tax reform as a relief measure.</span></p>
<p><span>As stated in the Associated Press, the US House Minority Leader Hakeem Jeffries, D-N.Y., said Republicans are &ldquo;crashing the economy, raising costs, and driving us toward a recession.&rdquo; He added, &ldquo;This majority, this presidency, has been a complete and total disaster for working-class Americans.&rdquo;</span></p>
<p><span>He further slammed Republicans for pretending to rescue taxpayers from a crisis they created. As stated in Associated Press, Jeffries said, &ldquo;Donald Trump, House Republicans, and Senate Republicans &mdash; let&rsquo;s be clear, not a single Democrat supported capping the state and local tax deduction. That was done by Republicans when they enacted the GOP tax scam. They crashed the car and want to pretend now that they&rsquo;re on a rescue operation.&rdquo;</span></p>
<h2><span><b>Trump&rsquo;s big bill: Tax cuts vs spending cuts</b></span></h2>
<p><span>At the core of the current dispute is Trump&rsquo;s proposed fiscal package, which includes $4.5 trillion in tax breaks and $1.5 trillion in federal spending cuts, according to a legislative outline obtained by Bloomberg. The proposal reportedly aims to make many of the 2017 tax cuts permanent and roll back several Biden-era incentives, including green energy tax credits and expanded Medicaid funding.</span></p>
<p><span>But the plan has hit a wall as fiscally conservative Republicans demand deeper spending cuts, while moderate Republicans push to protect key tax breaks and social programs. The Committee for a Responsible Federal Budget warned in a recent analysis that Trump&rsquo;s plan could add $3 trillion to the national deficit over a decade if not offset.</span><span></span></p>
<h2><span><b>Political Showdown Inside the GOP</b></span></h2>
<p><span>The party is deeply divided. On one side, members of the conservative House Freedom Caucus are demanding as much as $2 trillion in additional cuts,&nbsp;particularly to entitlement programs like Medicaid and food assistance, as reported by Politico. On the other side, GOP moderates reportedly argue that removing the SALT cap is essential to winning re-election in competitive districts.</span></p>
<p><span>Some of these lawmakers have reportedly met privately with Trump at the White House and at Mar-a-Lago, signalling how high-stakes the issue has become. Speaker Mike Johnson is racing against a self-imposed Memorial Day deadline to pass the bill, but insiders say the split could torpedo the entire legislative effort, as reported by Reuters.</span><span></span></p>
<h2><span><b>Democrats&rsquo; Strategy: Let the Cap Expire</b></span></h2>
<p><span>Democrats see an opportunity. If Republicans do nothing, the SALT cap,&nbsp;which was designed to expire at the end of 2025,&nbsp;will vanish on its own, restoring full deductions. Jeffries emphasised&nbsp;that fact repeatedly in his remarks.</span></p>
<p><span>As stated in Associated Press, Jeffries said, &ldquo;If there is nothing done with respect to the state and local tax deduction cap by the end of the year, you know what happens? It goes away. So, anything that Republicans are doing that relates to a cap actually will increase taxes on the American people, not lower taxes. Let&rsquo;s be clear about that.&rdquo;</span></p>
<h2><span><b>What&rsquo;s Next?</b></span></h2>
<p><span>As Republicans struggle to unify their fiscal vision, the SALT cap has become a symbolic and strategic litmus test, not only about tax fairness, but about who truly controls the GOP&rsquo;s agenda. With Democrats standing firm and moderate Republicans threatening to walk away, Trump&rsquo;s massive economic plan may hinge on how this single issue is resolved.</span></p>

Business & Economy:  The State and Local Tax (SALT) deduction allows taxpayers to subtract certain state and local taxes, such as property, income, and sales taxes, from their federal tax liability.

As Republicans push to finalise President Donald Trump’s ambitious $4.5 trillion tax cut plan, the State and Local Tax (SALT) deduction cap has emerged as a central flashpoint dividing the party. At the heart of the uproar is a policy first enacted by Republicans in 2017 — and now fiercely opposed by moderates, the Grand Old Party's lawmakers and Democrats alike. What is the SALT deduction? The SALT deduction allows taxpayers to subtract certain state and local taxes, such as property, income, and sales taxes, from their federal tax liability. Prior to 2017, there was no cap on this deduction. But under the Tax Cuts and Jobs Act, passed solely with Republican support during the Trump administration, a cap of $10,000 was introduced. This move significantly affected taxpayers in high-tax states like New York, California, and New Jersey. According to the Tax Policy Center, nearly 11 million households lost the full benefit of the SALT deduction after the cap was introduced in 2018. The Congressional Budget Office (CBO) estimates that the cap generated about $668 billion in federal revenue over 10 years. Jeffries calls GOP SALT strategy “Phony” Democrats argue that the SALT cap disproportionately penalises blue-state taxpayers and should simply be allowed to expire at the end of 2025. Jeffries has ridiculed the Republican effort to repackage their tax reform as a relief measure. As stated in the Associated Press, the US House Minority Leader Hakeem Jeffries, D-N.Y., said Republicans are “crashing the economy, raising costs, and driving us toward a recession.” He added, “This majority, this presidency, has been a complete and total disaster for working-class Americans.” He further slammed Republicans for pretending to rescue taxpayers from a crisis they created. As stated in Associated Press, Jeffries said, “Donald Trump, House Republicans, and Senate Republicans — let’s be clear, not a single Democrat supported capping the state and local tax deduction. That was done by Republicans when they enacted the GOP tax scam. They crashed the car and want to pretend now that they’re on a rescue operation.” Trump’s big bill: Tax cuts vs spending cuts At the core of the current dispute is Trump’s proposed fiscal package, which includes $4.5 trillion in tax breaks and $1.5 trillion in federal spending cuts, according to a legislative outline obtained by Bloomberg. The proposal reportedly aims to make many of the 2017 tax cuts permanent and roll back several Biden-era incentives, including green energy tax credits and expanded Medicaid funding. But the plan has hit a wall as fiscally conservative Republicans demand deeper spending cuts, while moderate Republicans push to protect key tax breaks and social programs. The Committee for a Responsible Federal Budget warned in a recent analysis that Trump’s plan could add $3 trillion to the national deficit over a decade if not offset. Political Showdown Inside the GOP The party is deeply divided. On one side, members of the conservative House Freedom Caucus are demanding as much as $2 trillion in additional cuts, particularly to entitlement programs like Medicaid and food assistance, as reported by Politico. On the other side, GOP moderates reportedly argue that removing the SALT cap is essential to winning re-election in competitive districts. Some of these lawmakers have reportedly met privately with Trump at the White House and at Mar-a-Lago, signalling how high-stakes the issue has become. Speaker Mike Johnson is racing against a self-imposed Memorial Day deadline to pass the bill, but insiders say the split could torpedo the entire legislative effort, as reported by Reuters. Democrats’ Strategy: Let the Cap Expire Democrats see an opportunity. If Republicans do nothing, the SALT cap, which was designed to expire at the end of 2025, will vanish on its own, restoring full deductions. Jeffries emphasised that fact repeatedly in his remarks. As stated in Associated Press, Jeffries said, “If there is nothing done with respect to the state and local tax deduction cap by the end of the year, you know what happens? It goes away. So, anything that Republicans are doing that relates to a cap actually will increase taxes on the American people, not lower taxes. Let’s be clear about that.” What’s Next? As Republicans struggle to unify their fiscal vision, the SALT cap has become a symbolic and strategic litmus test, not only about tax fairness, but about who truly controls the GOP’s agenda. With Democrats standing firm and moderate Republicans threatening to walk away, Trump’s massive economic plan may hinge on how this single issue is resolved.

US tax turmoil: SALT deduction cap sparks deep Republican Rift as Jeffries slams “Phony” reform

<p dir="ltr"><span>China's exports surged by 8.1 per cent year-on-year in April, surpassing economists&rsquo; expectations of a modest 2 per cent growth.</span></p>
<p dir="ltr"><span>The strong performance came despite a significant drop in shipments to the United States, which plunged over 21 per cent amid ongoing trade tensions. While the overall export growth remains positive, the trade war with the US remains a key hurdle for China&rsquo;s economy.</span></p>
<p dir="ltr"><span>Trade between the two largest economies has slowed considerably since US President Donald Trump imposed various rounds of tariffs on China. Levies on many Chinese goods now reach as high as 145 per cent&mdash;with cumulative duties on some goods soaring to a whopping 245 per cent.</span></p>
<p dir="ltr"><span>Beijing has responded with 125 per cent tariffs on imports of US goods, along with other measures targeting the US.</span></p>
<p dir="ltr"><span>Shipments to the US fell by more than 21 per cent in April compared to the previous year, marking a stark contrast to the overall positive performance in other regions. China&rsquo;s trade surplus with the United States was nearly $20.5 billion in April, down from about $27.2 billion a year earlier. In the first four months of the year, China&rsquo;s exports to the US dropped 2.5 per cent from a year earlier, while imports from the US fell 4.7 per cent.</span></p>
<p dir="ltr"><span>The Association of Southeast Asian Nations saw a significant surge of 20.8 per cent in April from a year earlier, accelerating from 11.6 per cent growth in March. Exports to Latin America also climbed 11.5 per cent. Shipments to India jumped nearly 16 per cent by value, and exports to Africa surged 15 per cent. The surge in trade with countries such as Vietnam, Malaysia, Indonesia, and Thailand helped mitigate the impact of declining demand from the US, highlighting China's shifting focus on diversifying its trade partnerships.</span></p>
<p dir="ltr"><span>China&rsquo;s exports to the European Union rose 8.3 per cent, while imports fell 16.5 per cent year-on-year. Exports had risen by 10.3 per cent, while imports had dropped 7.5 per cent in March.</span></p>
<p><b>&nbsp;</b></p>
<h2 dir="ltr"><span>The upcoming trade talks</span></h2>
<p dir="ltr"><span>The upcoming meeting between US and Chinese officials in Switzerland over the weekend has raised the prospects for a potential de-escalation in the ongoing trade war.</span></p>
<p dir="ltr"><span>The planned meeting would mark the first high-level US-China trade talks since the latest tariff escalations in April. US Senator Steve Daines met Chinese Premier Li Qiang in Beijing in March.</span></p>
<p dir="ltr"><span>While reaching a comprehensive deal is likely to be complex and time-consuming, a phased rollback of tariffs from both sides is possible, although analysts are split on the pace of such de-escalation.</span></p>
<p><b>&nbsp;</b></p>
<h2 dir="ltr"><span>Broader impact on the Chinese economy</span></h2>
<p dir="ltr"><span>Chinese authorities have intensified their stimulus efforts recently to mitigate the economic impact of tariffs. These actions include loosening monetary policy and providing support to businesses affected by tariffs.</span></p>
<p dir="ltr"><span>In April, China&rsquo;s factory activity dropped to its lowest level in 16 months, with new export orders falling to their weakest point since December 2022.</span></p>
<p dir="ltr"><span>There are growing concerns that the negative effects of tariffs may soon affect the job market, with Goldman Sachs estimating that China could lose 16 million jobs&mdash;about 2 per cent of its workforce&mdash;in sectors tied to US-bound goods.</span></p>
<p dir="ltr"><span>The latest purchasing managers' index (PMI) reveals a decline in employment across various sectors, as manufacturers cut back on production and put workers on paid leave.</span></p>
<p dir="ltr"><span>To support exporters hit by tariffs, local Chinese governments and large companies have expressed willingness to help redirect their goods to the domestic market. However, this is expected to increase deflationary pressures in the country.</span></p>

Business & Economy: China's exports surged by 8.1 per cent year-on-year in April, surpassing economists’ expectations of a modest 2 per cent growth.

China's exports surged by 8.1 per cent year-on-year in April, surpassing economists’ expectations of a modest 2 per cent growth. The strong performance came despite a significant drop in shipments to the United States, which plunged over 21 per cent amid ongoing trade tensions. While the overall export growth remains positive, the trade war with the US remains a key hurdle for China’s economy. Trade between the two largest economies has slowed considerably since US President Donald Trump imposed various rounds of tariffs on China. Levies on many Chinese goods now reach as high as 145 per cent—with cumulative duties on some goods soaring to a whopping 245 per cent. Beijing has responded with 125 per cent tariffs on imports of US goods, along with other measures targeting the US. Shipments to the US fell by more than 21 per cent in April compared to the previous year, marking a stark contrast to the overall positive performance in other regions. China’s trade surplus with the United States was nearly $20.5 billion in April, down from about $27.2 billion a year earlier. In the first four months of the year, China’s exports to the US dropped 2.5 per cent from a year earlier, while imports from the US fell 4.7 per cent. The Association of Southeast Asian Nations saw a significant surge of 20.8 per cent in April from a year earlier, accelerating from 11.6 per cent growth in March. Exports to Latin America also climbed 11.5 per cent. Shipments to India jumped nearly 16 per cent by value, and exports to Africa surged 15 per cent. The surge in trade with countries such as Vietnam, Malaysia, Indonesia, and Thailand helped mitigate the impact of declining demand from the US, highlighting China's shifting focus on diversifying its trade partnerships. China’s exports to the European Union rose 8.3 per cent, while imports fell 16.5 per cent year-on-year. Exports had risen by 10.3 per cent, while imports had dropped 7.5 per cent in March. The upcoming trade talks The upcoming meeting between US and Chinese officials in Switzerland over the weekend has raised the prospects for a potential de-escalation in the ongoing trade war. The planned meeting would mark the first high-level US-China trade talks since the latest tariff escalations in April. US Senator Steve Daines met Chinese Premier Li Qiang in Beijing in March. While reaching a comprehensive deal is likely to be complex and time-consuming, a phased rollback of tariffs from both sides is possible, although analysts are split on the pace of such de-escalation. Broader impact on the Chinese economy Chinese authorities have intensified their stimulus efforts recently to mitigate the economic impact of tariffs. These actions include loosening monetary policy and providing support to businesses affected by tariffs. In April, China’s factory activity dropped to its lowest level in 16 months, with new export orders falling to their weakest point since December 2022. There are growing concerns that the negative effects of tariffs may soon affect the job market, with Goldman Sachs estimating that China could lose 16 million jobs—about 2 per cent of its workforce—in sectors tied to US-bound goods. The latest purchasing managers' index (PMI) reveals a decline in employment across various sectors, as manufacturers cut back on production and put workers on paid leave. To support exporters hit by tariffs, local Chinese governments and large companies have expressed willingness to help redirect their goods to the domestic market. However, this is expected to increase deflationary pressures in the country.

China's exports surge amid decline in shipments to the US as trade war intensifies

<p>Amid tensions with Pakistan, India's currency Rupee, on Friday (May 9) continued its decline and plunged by 30 paise to open at 85.88 against the US dollar.</p>
<p>The previous day (Thursday, May 8), with the markets rattled by the ongoing geopolitical tensions with Pakistan, the rupee had its worst single-day fall in over two and a half years (since 6 February 2023), opening at 84.61 and closing at 85.58 against the dollar. Both the currency and stock markets declined yesterday after India confirmed that it had targeted a number of air defence radars and systems in Pakistan.</p>
<p><strong>Also read | <a href="https://www.wionews.com/pakistan/indo-pak-war-pakistan-claims-x-post-asking-international-partners-for-more-loans-fake-says-account-hacked-operation-sindoor-pakistan-war-india-pakistan-war-pahalgam-terror-attack-9050504">Indo-Pak war: Pakistan claims X post asking for 'more loans' fake, says account hacked; PIB claps back 'Is this the way to beg'</a></strong></p>
<h2><strong>What's behind the fall?</strong></h2>
<p>Traders and analysts cited the intensifying military standoff with Pakistan and rising demand for the safe-haven US dollar as primary triggers.</p>
<p>The Reserve Bank of India (RBI) has reportedly intervened in the forex market to curb volatility and prevent panic-driven depreciation. Analysts say RBI may step in more aggressively if the rupee breaches 86.</p>
<p>Without RBI's intervention, we could see the rupee hit 87, warned Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors.</p>
<p><strong>Also read | <a href="https://www.wionews.com/india-news/indo-pak-war-pakistan-asks-international-partners-for-money-and-more-loans-claims-heavy-losses-amid-tensions-with-india-operation-sindoor-pakistan-in-debt-9050442">Indo-Pak war: Pakistan asks international partners for 'more loans,' claims 'heavy losses' amid tensions with India</a></strong></p>
<p>"With hostilities increasing and if RBI does not step in, we can see the rupee reach even 87 tomorrow with a more than 1 rupee movement seen today," he said as cited by The Mint.</p>
<h2><strong>Latest in Indo-Pak tensions</strong></h2>
<p>Pakistan, on the intervening night of May 8 and 9, once again violated the ceasefire along the Line of Control (LoC). This is the 15th consecutive violation by Pakistani troops since the horrific Pahalgam terror attack, in which 26 people were indiscriminately gunned down by terrorists.</p>
<p>As per India's Additional Directorate General of Public Information (ADG PI) of the Indian Army, Pakistan Armed Forces launched multiple attacks using drones and other munitions along the entire Western Border.</p>
<p><strong>Also read | <a href="https://www.wionews.com/india-news/indo-pak-war-pakistan-imf-bailout-review-meeting-today-indian-foreign-secretary-says-india-will-present-its-case-9051298">Indo-Pak war: Pakistan IMF bailout review meeting today, Indian Foreign Secretary says India will present its case</a></strong></p>
<p>Furthermore, Pakistani forces also resorted to "numerous cease fire violations (CFVs) along the Line of Control in Jammu and Kashmir".</p>
<p>The Indian army "effectively repulsed" the drone attacks and also gave a "befitting reply" to the CFVs.</p>

Amid escalating Indo-Pak tensions, the Indian Rupee hits a record low of 85.88 against the US dollar, marking its sharpest drop in over two years.

Amid tensions with Pakistan, India's currency Rupee, on Friday (May 9) continued its decline and plunged by 30 paise to open at 85.88 against the US dollar. The previous day (Thursday, May 8), with the markets rattled by the ongoing geopolitical tensions with Pakistan, the rupee had its worst single-day fall in over two and a half years (since 6 February 2023), opening at 84.61 and closing at 85.58 against the dollar. Both the currency and stock markets declined yesterday after India confirmed that it had targeted a number of air defence radars and systems in Pakistan. Also read | Indo-Pak war: Pakistan claims X post asking for 'more loans' fake, says account hacked; PIB claps back 'Is this the way to beg' What's behind the fall? Traders and analysts cited the intensifying military standoff with Pakistan and rising demand for the safe-haven US dollar as primary triggers. The Reserve Bank of India (RBI) has reportedly intervened in the forex market to curb volatility and prevent panic-driven depreciation. Analysts say RBI may step in more aggressively if the rupee breaches 86. Without RBI's intervention, we could see the rupee hit 87, warned Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors. Also read | Indo-Pak war: Pakistan asks international partners for 'more loans,' claims 'heavy losses' amid tensions with India "With hostilities increasing and if RBI does not step in, we can see the rupee reach even 87 tomorrow with a more than 1 rupee movement seen today," he said as cited by The Mint. Latest in Indo-Pak tensions Pakistan, on the intervening night of May 8 and 9, once again violated the ceasefire along the Line of Control (LoC). This is the 15th consecutive violation by Pakistani troops since the horrific Pahalgam terror attack, in which 26 people were indiscriminately gunned down by terrorists. As per India's Additional Directorate General of Public Information (ADG PI) of the Indian Army, Pakistan Armed Forces launched multiple attacks using drones and other munitions along the entire Western Border. Also read | Indo-Pak war: Pakistan IMF bailout review meeting today, Indian Foreign Secretary says India will present its case Furthermore, Pakistani forces also resorted to "numerous cease fire violations (CFVs) along the Line of Control in Jammu and Kashmir". The Indian army "effectively repulsed" the drone attacks and also gave a "befitting reply" to the CFVs.

Indo-Pak war: Indian Rupee slides to record lows; falls to 85.88 against dollar, sharpest drop in over 2.5 years

<p><span data-olk-copy-source="MessageBody">Chinese President Xi Jinping&rsquo;s state visit to Moscow marked a pivotal moment in the deepening of Beijing-Russia ties, as the two leaders reaffirmed their long-standing partnership with symbolism and substance. This is President Xi&rsquo;s first face-to-face meeting with Russian President Vladimir Putin since 2022, and notably, his first visit to Moscow since US President Donald Trump returned to the Oval Office.</span></p>
<p><span>The timing is no coincidence. President Xi&rsquo;s trip comes just days before a high-stakes, face-to-face dialogue between China and the United States in Geneva, where top officials will sit down to negotiate over an escalating trade tariff dispute. Xi and Putin&rsquo;s renewed show of unity underscores their shared desire to present a unified front,&nbsp;just as China prepares to recalibrate its economic diplomacy on the world stage.</span></p>
<p><span>In a ceremonial display of solidarity, Xi was welcomed at the Grand Kremlin Palace, where he and Putin exchanged greetings as &ldquo;dear friends.&rdquo; The leaders held bilateral talks, signed a sweeping joint statement, and stood side-by-side during the Victory Day Parade in Red Square, commemorating the Soviet Union&rsquo;s defeat of Nazi Germany in World War II.</span><span></span></p>
<h2><span><b>China-Russia Economic Ties: From Sanctions to Strategic Dependency</b></span></h2>
<p><span>The economic bond between Beijing and Moscow has become increasingly critical,&nbsp;particularly for a sanctions-hit Russia. According to Chinese customs data, bilateral trade between China and Russia surged to a record $245 billion in 2024, marking a 68 per cent increase from 2021.</span></p>
<p><span>As reported by Bloomberg, this growth was largely driven by China&rsquo;s expanded imports of Russian oil and gas and exports of automobiles, electronics, machinery, and dual-use components vital to Russia&rsquo;s wartime production. The alignment became especially critical after Western nations imposed harsh sanctions on Russia following its invasion of Ukraine.</span></p>
<p><span>Reuters notes that Russia has emerged as the top importer of Chinese vehicles, benefiting from the exit of Western carmakers. However, recent Russian tax hikes and softening demand have slowed Chinese car exports in early 2025.</span></p>
<p><span>Despite the trade momentum, key frictions remain. Beijing has been hesitant to finalise&nbsp;the Power of Siberia 2 gas pipeline deal, a flagship Russian energy project that would run through Mongolia. As per Bloomberg, China is opting for a diversified energy portfolio rather than locking itself into deeper dependency on Russian gas.</span></p>
<p><span>&nbsp;</span></p>
<p><span><b>Xi-Putin joint address in Russia</b></span></p>
<p><span>In their joint statement, as stated by Reuters, Xi and Putin pledged to &ldquo;further deepen the China-Russia comprehensive strategic partnership of coordination for a new era.&rdquo; The document strongly criticised Western sanctions and power politics, stating,&nbsp;</span><span>&ldquo;Both sides strongly oppose the imposition of unilateral illegitimate restrictive measures and external interference in the internal affairs of sovereign states.&rdquo;</span></p>
<p><span>Xi emphasised&nbsp;that,&nbsp;</span><span>&ldquo;China stands together with Russia in opposing unilateralism, bullying, and interference by powerful forces in the name of international rules.&rdquo;&nbsp;</span></p>
<p><span>Putin echoed the sentiment, stating,&nbsp;</span><span>&ldquo;Together with our Chinese friends, we stand guard over historical truth and uphold global fairness, stability, and order.&rdquo;</span></p>
<p><span>Both leaders also vowed to strengthen coordination in international forums, including the United Nations, BRICS, and the G20, with a stated goal of promoting &ldquo;global strategic balance and multilateralism.&rdquo;</span><span></span></p>
<h2><span><b>The Geneva Talks: China&rsquo;s Diplomatic Tightrope</b></span></h2>
<p><span>President Xi&rsquo;s high-profile Moscow visit precedes a crucial moment in China&rsquo;s foreign economic policy: direct trade talks with the US in Geneva, where Beijing is expected to seek relief from President Trump&rsquo;s 145 per cent tariffs on Chinese goods, among the highest imposed by any administration.</span></p>
<p><span>According to Bloomberg, China will likely position itself as the more responsible amid the turbulence caused by Trump&rsquo;s &ldquo;America First&rdquo; policy. At the same time, Beijing has been strengthening ties with Latin America, Africa, and Southeast Asia, looking for alternative markets to reduce reliance on the US</span></p>
<p><span>Xi&rsquo;s state visit to Moscow had set against the backdrop of the Geneva trade talks,&nbsp;is a bold geopolitical signal. As China walks a diplomatic tightrope in Geneva, it&rsquo;s doing so without backing away from its closest strategic partner.</span></p>

Business & Economy: The timing is no coincidence. President Xi’s trip comes just days before a high-stakes, face-to-face dialogue between China and the US in Geneva, where top officials will sit down to negotiate over an escalating trade tariff dispute.

Chinese President Xi Jinping’s state visit to Moscow marked a pivotal moment in the deepening of Beijing-Russia ties, as the two leaders reaffirmed their long-standing partnership with symbolism and substance. This is President Xi’s first face-to-face meeting with Russian President Vladimir Putin since 2022, and notably, his first visit to Moscow since US President Donald Trump returned to the Oval Office. The timing is no coincidence. President Xi’s trip comes just days before a high-stakes, face-to-face dialogue between China and the United States in Geneva, where top officials will sit down to negotiate over an escalating trade tariff dispute. Xi and Putin’s renewed show of unity underscores their shared desire to present a unified front, just as China prepares to recalibrate its economic diplomacy on the world stage. In a ceremonial display of solidarity, Xi was welcomed at the Grand Kremlin Palace, where he and Putin exchanged greetings as “dear friends.” The leaders held bilateral talks, signed a sweeping joint statement, and stood side-by-side during the Victory Day Parade in Red Square, commemorating the Soviet Union’s defeat of Nazi Germany in World War II. China-Russia Economic Ties: From Sanctions to Strategic Dependency The economic bond between Beijing and Moscow has become increasingly critical, particularly for a sanctions-hit Russia. According to Chinese customs data, bilateral trade between China and Russia surged to a record $245 billion in 2024, marking a 68 per cent increase from 2021. As reported by Bloomberg, this growth was largely driven by China’s expanded imports of Russian oil and gas and exports of automobiles, electronics, machinery, and dual-use components vital to Russia’s wartime production. The alignment became especially critical after Western nations imposed harsh sanctions on Russia following its invasion of Ukraine. Reuters notes that Russia has emerged as the top importer of Chinese vehicles, benefiting from the exit of Western carmakers. However, recent Russian tax hikes and softening demand have slowed Chinese car exports in early 2025. Despite the trade momentum, key frictions remain. Beijing has been hesitant to finalise the Power of Siberia 2 gas pipeline deal, a flagship Russian energy project that would run through Mongolia. As per Bloomberg, China is opting for a diversified energy portfolio rather than locking itself into deeper dependency on Russian gas. Xi-Putin joint address in Russia In their joint statement, as stated by Reuters, Xi and Putin pledged to “further deepen the China-Russia comprehensive strategic partnership of coordination for a new era.” The document strongly criticised Western sanctions and power politics, stating, “Both sides strongly oppose the imposition of unilateral illegitimate restrictive measures and external interference in the internal affairs of sovereign states.” Xi emphasised that, “China stands together with Russia in opposing unilateralism, bullying, and interference by powerful forces in the name of international rules.” Putin echoed the sentiment, stating, “Together with our Chinese friends, we stand guard over historical truth and uphold global fairness, stability, and order.” Both leaders also vowed to strengthen coordination in international forums, including the United Nations, BRICS, and the G20, with a stated goal of promoting “global strategic balance and multilateralism.” The Geneva Talks: China’s Diplomatic Tightrope President Xi’s high-profile Moscow visit precedes a crucial moment in China’s foreign economic policy: direct trade talks with the US in Geneva, where Beijing is expected to seek relief from President Trump’s 145 per cent tariffs on Chinese goods, among the highest imposed by any administration. According to Bloomberg, China will likely position itself as the more responsible amid the turbulence caused by Trump’s “America First” policy. At the same time, Beijing has been strengthening ties with Latin America, Africa, and Southeast Asia, looking for alternative markets to reduce reliance on the US Xi’s state visit to Moscow had set against the backdrop of the Geneva trade talks, is a bold geopolitical signal. As China walks a diplomatic tightrope in Geneva, it’s doing so without backing away from its closest strategic partner.

Xi-Putin cement strategic ties ahead of US-China high-stakes Geneva trade talks

<p><span>The Bank of England's (BoE) Monetary Policy Committee (MPC) has voted to lower the benchmark bank rate by 0.25 percentage points to 4.25 per cent, marking a cautious step towards easing policy amid ongoing progress on disinflation.</span></p>
<p>&nbsp;</p>
<p><span>This decision, announced on May 08, was passed by a narrow majority of 5-4. While two members advocated for a more significant 0.5 percentage point cut to 4 per cent, and two others argued to keep the rate unchanged at 4.5 per cent.&nbsp;</span></p>
<p>&nbsp;</p>
<p><span>The cut had been widely expected, especially after a slowdown in price rises, with inflation cooling to 2.6 per cent in the twelve months to March (from 2.8 per cent in February), as energy prices have retreated and the restrictive monetary stance has helped contain second-round inflationary effects.</span></p>
<p>&nbsp;</p>
<p><span>Despite the recent decline in inflation, the MPC remains cautious, stating that interest rates will need to stay in restrictive territory to guard against any persistent inflation pressures. The committee noted that inflationary risks could still shift in either direction, with global trade uncertainties and tariff-related volatility contributing to market fluctuations.</span></p>
<p>&nbsp;</p>
<p><span>&ldquo;We expect an increase in inflation this year. It is likely to rise temporarily to 3.7 per cent, partly because of higher energy prices. Inflation is expected to fall back to the 2 per cent target after that&hellip;There is also a lot of uncertainty from global developments, partly because of changes in global trade policies. We are assessing what this could mean for UK inflation closely,&rdquo; said BoE Governor Andrew Bailey.</span></p>
<p>&nbsp;</p>
<p><span>&ldquo;We need to be confident that inflation will remain low and stable in a lasting way. We will decide carefully how much further and how fast we can cut interest rates,&rdquo; he added.</span></p>
<p>&nbsp;</p>
<h2><span><strong>UK economy's health check</strong></span></h2>
<p>&nbsp;</p>
<p><span>The UK economy has shown signs of slowing growth, with GDP growth decelerating since mid-2024 and the labour market loosening. Wage growth, though still elevated, is expected to decline sharply later in the year. Energy prices have fallen, but increases earlier in the year are still expected to push inflation back up to 3.5 per cent by the third quarter of 2025 before easing once more.</span></p>
<p>&nbsp;</p>
<p><span>The underlying GDP growth is expected to have been around zero in 2025 Q1, well below the central bank&rsquo;s projection for headline growth of 0.6 per cent. The S&amp;P Global UK composite output PMI declined significantly in April, suggesting downside risks around the near-term outlook. Household spending growth has remained subdued over recent quarters, although real incomes have risen quite strongly such that the saving ratio increased to 11.6 per cent in 2024 Q4, its highest level since the pandemic.</span></p>
<p>&nbsp;</p>
<p><span>The country&rsquo;s employment growth has also softened recently, and the labour market has continued to loosen. The ratio of vacancies to unemployment has fallen further and is now judged to be below its equilibrium level.</span></p>
<p>&nbsp;</p>
<p><span>The central bank's May Report sets out two illustrative scenarios. In one scenario, there could be weaker supply and more persistence in domestic wages and prices, including from second-round effects related to the near-term increase in CPI inflation. In another scenario, inflationary pressures could ease more quickly owing to greater or longer-lasting weakness in demand relative to supply, in part reflecting uncertainties globally and domestically.</span></p>
<p>&nbsp;</p>
<p><span>The committee emphasised that monetary policy is not on a preset path and will be responsive to changes in the economic landscape.</span></p>
<p>&nbsp;</p>
<p><span>The future decisions on interest rates will depend on how inflation and the economy evolve, with the goal of returning inflation to the 2 per cent target in the medium term, the committee said in a statement.</span></p>
<p>&nbsp;</p>
<h2><span><strong>Who will it help?</strong></span></h2>
<p>&nbsp;</p>
<p><span>The Bank of England&rsquo;s recent 25-basis-point interest rate cut is set to benefit homeowners, particularly those looking to buy or remortgage. With a significant portion of UK homeowners on fixed-rate mortgages, the rate reduction is beneficial for those whose fixed-rate terms are ending in 2025, as it could lead to cheaper mortgage deals. While the cut won&rsquo;t impact those with existing fixed-rate mortgages, experts say it may help stimulate the housing market by improving affordability and providing lenders with room to compete, particularly among first-time buyers.</span></p>
<p>&nbsp;</p>
<p><span>In addition to this, the rate cut is also expected to benefit consumers and businesses. Borrowers with credit cards and personal loans may see lower interest rates, depending on their credit history. For businesses, particularly small and medium-sized enterprises, lower rates could make borrowing cheaper, providing relief after recent cost increases like the national minimum wage hike. With reduced borrowing costs, firms may have more cash for investment, potentially boosting consumer confidence and spending, helping the UK economy recover.</span></p>

Business & Economy: Despite the recent decline in inflation, the MPC remains cautious, stating that interest rates will need to stay in restrictive territory

The Bank of England's (BoE) Monetary Policy Committee (MPC) has voted to lower the benchmark bank rate by 0.25 percentage points to 4.25 per cent, marking a cautious step towards easing policy amid ongoing progress on disinflation. This decision, announced on May 08, was passed by a narrow majority of 5-4. While two members advocated for a more significant 0.5 percentage point cut to 4 per cent, and two others argued to keep the rate unchanged at 4.5 per cent. The cut had been widely expected, especially after a slowdown in price rises, with inflation cooling to 2.6 per cent in the twelve months to March (from 2.8 per cent in February), as energy prices have retreated and the restrictive monetary stance has helped contain second-round inflationary effects. Despite the recent decline in inflation, the MPC remains cautious, stating that interest rates will need to stay in restrictive territory to guard against any persistent inflation pressures. The committee noted that inflationary risks could still shift in either direction, with global trade uncertainties and tariff-related volatility contributing to market fluctuations. “We expect an increase in inflation this year. It is likely to rise temporarily to 3.7 per cent, partly because of higher energy prices. Inflation is expected to fall back to the 2 per cent target after that…There is also a lot of uncertainty from global developments, partly because of changes in global trade policies. We are assessing what this could mean for UK inflation closely,” said BoE Governor Andrew Bailey. “We need to be confident that inflation will remain low and stable in a lasting way. We will decide carefully how much further and how fast we can cut interest rates,” he added. UK economy's health check The UK economy has shown signs of slowing growth, with GDP growth decelerating since mid-2024 and the labour market loosening. Wage growth, though still elevated, is expected to decline sharply later in the year. Energy prices have fallen, but increases earlier in the year are still expected to push inflation back up to 3.5 per cent by the third quarter of 2025 before easing once more. The underlying GDP growth is expected to have been around zero in 2025 Q1, well below the central bank’s projection for headline growth of 0.6 per cent. The S&P Global UK composite output PMI declined significantly in April, suggesting downside risks around the near-term outlook. Household spending growth has remained subdued over recent quarters, although real incomes have risen quite strongly such that the saving ratio increased to 11.6 per cent in 2024 Q4, its highest level since the pandemic. The country’s employment growth has also softened recently, and the labour market has continued to loosen. The ratio of vacancies to unemployment has fallen further and is now judged to be below its equilibrium level. The central bank's May Report sets out two illustrative scenarios. In one scenario, there could be weaker supply and more persistence in domestic wages and prices, including from second-round effects related to the near-term increase in CPI inflation. In another scenario, inflationary pressures could ease more quickly owing to greater or longer-lasting weakness in demand relative to supply, in part reflecting uncertainties globally and domestically. The committee emphasised that monetary policy is not on a preset path and will be responsive to changes in the economic landscape. The future decisions on interest rates will depend on how inflation and the economy evolve, with the goal of returning inflation to the 2 per cent target in the medium term, the committee said in a statement. Who will it help? The Bank of England’s recent 25-basis-point interest rate cut is set to benefit homeowners, particularly those looking to buy or remortgage. With a significant portion of UK homeowners on fixed-rate mortgages, the rate reduction is beneficial for those whose fixed-rate terms are ending in 2025, as it could lead to cheaper mortgage deals. While the cut won’t impact those with existing fixed-rate mortgages, experts say it may help stimulate the housing market by improving affordability and providing lenders with room to compete, particularly among first-time buyers. In addition to this, the rate cut is also expected to benefit consumers and businesses. Borrowers with credit cards and personal loans may see lower interest rates, depending on their credit history. For businesses, particularly small and medium-sized enterprises, lower rates could make borrowing cheaper, providing relief after recent cost increases like the national minimum wage hike. With reduced borrowing costs, firms may have more cash for investment, potentially boosting consumer confidence and spending, helping the UK economy recover.

Bank of England reduces interest rates to 4.25% as tariffs hit growth

<div dir="auto">US President Donald Trump and British Prime Minister Keir Starmer on May 08 announced that the two nations have reached a &lsquo;historic agreement&rsquo;, the first such deal since the implementation of reciprocal tariffs by Trump.&nbsp;</div>
<div dir="auto"></div>
<div dir="auto">While briefing the media at the White House, Donald Trump said, "This morning I am thrilled to announce that we have reached a trade deal with the UK. Today is the Victory Day for World War II, we won together exactly 80 years ago, so there could be no more perfect morning to reach this historic agreement."</div>
<div dir="auto"></div>
<div dir="auto">The White House said that the limited bilateral trade agreement (BTA) will bring in $6 billion in external revenue from its 10-per cent tariffs on British exports, which remains in place, and it would also bring in $5 billion in new export opportunities for the United States. The agreement would lead to more beef and ethanol exports to the UK, and it will also streamline the processing of US goods through customs.&nbsp;</div>
<div dir="auto"></div>
<div dir="auto">The UK on the other hand has agreed to lower its tariffs to 1.8 per cent from 5.1 per cent and provide greater access to US goods. The deal seeks to double trade between the two nations to $120 billion by 2030.</div>
<div dir="auto"></div>
<div dir="auto">No concrete information was provided by the two countries, and the final details of the deal are yet to be fleshed out. &ldquo;The final details are being written up,&rdquo; Trump said. &ldquo;In the coming weeks, we&rsquo;ll have it all very conclusive.&rdquo;</div>
<div dir="auto"></div>
<div dir="auto">The US runs a trade surplus with the UK, which makes it easier to find common ground, as Trump has staked his tariffs on specifically eliminating the annual trade deficits with its trade partners that he says have taken advantage of the US. Trump also downplayed the UK deal as template for other trade negotiations, he suggested that other countries may end up with much higher rates as they enjoy a huge US trade surplus.</div>
<div dir="auto"></div>
<div dir="auto">US total goods trade with the UK was estimated at $148.0 billion in 2024. US goods exports to the UK in 2024 were $79.9 billion, up 7.6 per cent ($5.6 billion) from 2023, while US goods imports from the United Kingdom totalled $68.1 billion in 2024, up 6.0 per cent ($3.9 billion) from 2023. The US goods trade surplus with the UK was $11.9 billion in 2024.</div>
<div dir="auto"></div>
<div dir="auto"></div>
<h2 dir="auto">Unresolved issues</h2>
<div dir="auto"></div>
<div dir="auto">The trade framework grants the US greater market access and a quicker customs process for exports to the UK, while the UK receives limited relief on duties for cars, steel, and aluminium. However, many aspects of the deal are still to be negotiated.</div>
<div dir="auto"></div>
<div dir="auto">Trump had imposed an additional 25 per cent tariff on cars and auto parts from the UK, on top of the existing 2.5 per cent. Under the new deal, UK car manufacturers can export the first 100,000 vehicles to the US each year at a reduced 10 per cent tariff, but any additional vehicles will be subject to a 27.5 per cent rate. Since cars are the UK's largest export to the US&mdash;approximately worth $ 11.9 billion last year&mdash;this could significantly affect the UK's auto industry.</div>
<div dir="auto"></div>
<div dir="auto">The UK will maintain its digital services tax, which is a concern for US tech giants, with only a vague commitment to work on a future digital trade agreement. Additionally, the two countries have yet to reach a resolution on Trump's plans for sweeping pharmaceutical tariffs. While the UK has removed tariffs on certain US agricultural goods, strict food regulations remain in place.</div>
<div dir="auto"></div>
<div dir="auto">There were also discrepancies in the statements made by the US and UK regarding some key aspects of the deal. The UK government said that US tariffs on steel and aluminium from the UK would be eliminated, but the White House less than an hour later stated that they would "negotiate an alternative arrangement" for these duties, and that the framework establishes a new "trading union" for these materials.</div>
<div dir="auto"></div>
<div dir="auto"></div>
<h2 dir="auto">Market reaction</h2>
<div dir="auto"></div>
<div dir="auto">Trump&rsquo;s first trade agreement since April 2 sparked a surge on Wall Street, with major US indexes climbing more than 1 per cent at one point. The S&amp;P 500's passenger airlines index rose 5.4 per cent, driven by a 7.2 per cent increase in Delta Air Lines stock, following US Commerce Secretary Howard Lutnick's announcement that British-made Rolls-Royce engines would be imported into the US duty-free.</div>
<div dir="auto"></div>
<div dir="auto">The Nasdaq Composite gained 1.07 per cent, while the S&amp;P 500 and Dow Jones both saw increases of around 0.6 per cent.</div>
<div dir="auto"></div>
<div dir="auto">Trump's administration had been facing pressure from investors to finalise deals and ease trade tensions, as his often-unpredictable policy decisions had disrupted global trade, creating risks of inflation and potentially pushing both the US and global economies toward a recession.</div>

Business & Economy: The US tariffs on British exports remain 10 per cent, while the UK has agreed to lower its tariffs to 1.8 per cent and provide more access to US goods

US President Donald Trump and British Prime Minister Keir Starmer on May 08 announced that the two nations have reached a ‘historic agreement’, the first such deal since the implementation of reciprocal tariffs by Trump. While briefing the media at the White House, Donald Trump said, "This morning I am thrilled to announce that we have reached a trade deal with the UK. Today is the Victory Day for World War II, we won together exactly 80 years ago, so there could be no more perfect morning to reach this historic agreement." The White House said that the limited bilateral trade agreement (BTA) will bring in $6 billion in external revenue from its 10-per cent tariffs on British exports, which remains in place, and it would also bring in $5 billion in new export opportunities for the United States. The agreement would lead to more beef and ethanol exports to the UK, and it will also streamline the processing of US goods through customs. The UK on the other hand has agreed to lower its tariffs to 1.8 per cent from 5.1 per cent and provide greater access to US goods. The deal seeks to double trade between the two nations to $120 billion by 2030. No concrete information was provided by the two countries, and the final details of the deal are yet to be fleshed out. “The final details are being written up,” Trump said. “In the coming weeks, we’ll have it all very conclusive.” The US runs a trade surplus with the UK, which makes it easier to find common ground, as Trump has staked his tariffs on specifically eliminating the annual trade deficits with its trade partners that he says have taken advantage of the US. Trump also downplayed the UK deal as template for other trade negotiations, he suggested that other countries may end up with much higher rates as they enjoy a huge US trade surplus. US total goods trade with the UK was estimated at $148.0 billion in 2024. US goods exports to the UK in 2024 were $79.9 billion, up 7.6 per cent ($5.6 billion) from 2023, while US goods imports from the United Kingdom totalled $68.1 billion in 2024, up 6.0 per cent ($3.9 billion) from 2023. The US goods trade surplus with the UK was $11.9 billion in 2024. Unresolved issues The trade framework grants the US greater market access and a quicker customs process for exports to the UK, while the UK receives limited relief on duties for cars, steel, and aluminium. However, many aspects of the deal are still to be negotiated. Trump had imposed an additional 25 per cent tariff on cars and auto parts from the UK, on top of the existing 2.5 per cent. Under the new deal, UK car manufacturers can export the first 100,000 vehicles to the US each year at a reduced 10 per cent tariff, but any additional vehicles will be subject to a 27.5 per cent rate. Since cars are the UK's largest export to the US—approximately worth $ 11.9 billion last year—this could significantly affect the UK's auto industry. The UK will maintain its digital services tax, which is a concern for US tech giants, with only a vague commitment to work on a future digital trade agreement. Additionally, the two countries have yet to reach a resolution on Trump's plans for sweeping pharmaceutical tariffs. While the UK has removed tariffs on certain US agricultural goods, strict food regulations remain in place. There were also discrepancies in the statements made by the US and UK regarding some key aspects of the deal. The UK government said that US tariffs on steel and aluminium from the UK would be eliminated, but the White House less than an hour later stated that they would "negotiate an alternative arrangement" for these duties, and that the framework establishes a new "trading union" for these materials. Market reaction Trump’s first trade agreement since April 2 sparked a surge on Wall Street, with major US indexes climbing more than 1 per cent at one point. The S&P 500's passenger airlines index rose 5.4 per cent, driven by a 7.2 per cent increase in Delta Air Lines stock, following US Commerce Secretary Howard Lutnick's announcement that British-made Rolls-Royce engines would be imported into the US duty-free. The Nasdaq Composite gained 1.07 per cent, while the S&P 500 and Dow Jones both saw increases of around 0.6 per cent. Trump's administration had been facing pressure from investors to finalise deals and ease trade tensions, as his often-unpredictable policy decisions had disrupted global trade, creating risks of inflation and potentially pushing both the US and global economies toward a recession.

US-UK trade deal: What’s really on the table for both nations?

<div data-olk-copy-source="MessageBody">
<div data-olk-copy-source="MessageBody">As tensions between India and Pakistan escalate, markets in both countries have turned extremely volatile, with the Pakistani stock index experiencing a more significant hit.</div>
<div></div>
<div>The turmoil reached new heights on Friday, as India's equity markets closed sharply lower, and Pakistan's KSE-100 index see-sawing wildly, driven by growing geopolitical risks.</div>
<div></div>
<div>This instability largely stems from Pakistan's response to India's response to the April 22 terror attack in Pahalgam that killed 26 people.</div>
</div>
<h2><span><b data-olk-copy-source="MessageBody">Indian Markets slide as conflict escalates</b></span></h2>
<div>
<p><span data-olk-copy-source="MessageBody">The benchmark Sensex Index was down by over 800 points and closed at 79,925.34, still down over 800 points. Meanwhile, t</span><span>he broader NSE Nifty50 was down about 1 per cent, testing the 24,000-point mark at the closing bell.&nbsp;</span></p>
<p><span>The sectoral landscape also reflected weakness, with the S&amp;P BSE mid-cap and small-cap indices trading firmly in the red.</span></p>
<p><span>Interestingly, the Nifty consumer durables index stood out as the sole gainer, posting modest gains amid the broader market decline.</span></p>
<p><span>Still, experts cited India&rsquo;s economic fundamentals&mdash;driven by robust GDP growth and softening interest rates&mdash;as key factors underpinning long-term investor confidence.</span></p>
<p><span>However, the prevailing geopolitical uncertainty weighed heavily on sentiment, triggering caution among market participants.</span></p>
<p><span>On the BSE, 2,466 stocks declined while only 423 advanced, indicating a widespread sell-off.</span></p>
<p><span>Despite the weak sentiment, Foreign Portfolio Investors (FPIs) remained net buyers, pumping in ₹2,007.96 crore into equities, whereas Domestic Institutional Investors (DIIs) booked profits, selling shares worth ₹596.25 crore.</span></p>
<div>Amid the overall market downturn, defence stocks emerged as clear winners.</div>
<div></div>
<div>With heightened tensions and expectations of increased defence spending, stocks of companies like Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL), and Mazagon Dock Shipbuilders saw sharp gains, some climbing as much as 5 per cent.</div>
<div></div>
<div>This surge underscores investor confidence in the defence sector, with an anticipated boost in military procurement and operations.</div>
<div></div>
<div>On the global stage, companies such as Dassault Aviation, makers of Rafale jets, also saw increased buying interest, highlighting a worldwide trend toward strengthening defence capabilities amid geopolitical uncertainty.</div>
</div>
<h2>Indian rupee takes a hit</h2>
<div>On the currency front, the Indian rupee extended its slide on Friday after falling 1.1 per cent to reach ₹85.57 per dollar, marking its sharpest decline since February 2022.</div>
<div></div>
<div>The rupee's drop reflects growing investor caution amid geopolitical instability and heightened demand for the safe-haven US Dollar.</div>
<h2>Pakistan's KSE-100 gyrates wildly</h2>
<div>
<p><span data-olk-copy-source="MessageBody">Pakistan&rsquo;s KSE-100 index see-sawed throughout the day, eventually posting strong gains.&nbsp;</span></p>
<p><span>It closed 3.52 per cent higher at 107,174.64, up 3,647.82 points.&nbsp;</span></p>
<div data-olk-copy-source="MessageBody">Over the past three sessions, the Pakistan Stock Exchange has shed over 10 per cent, reflecting growing fears of economic instability and anxiety ahead of an IMF board review.</div>
</div>
<h2>Rising tensions: India-Pakistan standoff escalates</h2>
<div>On the ground, military activity has surged on both sides of the border. In response to rising threats, India has bolstered security in New Delhi, deploying additional forces and enhancing surveillance.</div>
<div></div>
<div>In a strategic move, India has suspended trade ties with Pakistan and is actively reviewing the Indus Waters Treaty, signalling a hardening stance. Diplomatic relations remain tense, with both nations summoning each other's High Commissioners for the third time this week, emphasizing the severity of the situation.</div>
<div></div>
<div>Given the ongoing geopolitical risks, experts predict continued market volatility in both Indian and Pakistani stock markets.</div>
<div></div>
<div>While defence stocks may continue to see strong interest, aviation, tourism, and logistics sectors are expected to remain under pressure. Investors remain cautious as the situation remains fluid, with the potential for further escalation in the coming days.</div>

Business & Economy: The stock market fluctuation is primarily driven by Pakistan's response to India's actions following the April 22 terror attack in Pahalgam, which resulted in casualties.

As tensions between India and Pakistan escalate, markets in both countries have turned extremely volatile, with the Pakistani stock index experiencing a more significant hit. The turmoil reached new heights on Friday, as India's equity markets closed sharply lower, and Pakistan's KSE-100 index see-sawing wildly, driven by growing geopolitical risks. This instability largely stems from Pakistan's response to India's response to the April 22 terror attack in Pahalgam that killed 26 people. Indian Markets slide as conflict escalates The benchmark Sensex Index was down by over 800 points and closed at 79,925.34, still down over 800 points. Meanwhile, the broader NSE Nifty50 was down about 1 per cent, testing the 24,000-point mark at the closing bell. The sectoral landscape also reflected weakness, with the S&P BSE mid-cap and small-cap indices trading firmly in the red. Interestingly, the Nifty consumer durables index stood out as the sole gainer, posting modest gains amid the broader market decline. Still, experts cited India’s economic fundamentals—driven by robust GDP growth and softening interest rates—as key factors underpinning long-term investor confidence. However, the prevailing geopolitical uncertainty weighed heavily on sentiment, triggering caution among market participants. On the BSE, 2,466 stocks declined while only 423 advanced, indicating a widespread sell-off. Despite the weak sentiment, Foreign Portfolio Investors (FPIs) remained net buyers, pumping in ₹2,007.96 crore into equities, whereas Domestic Institutional Investors (DIIs) booked profits, selling shares worth ₹596.25 crore. Amid the overall market downturn, defence stocks emerged as clear winners. With heightened tensions and expectations of increased defence spending, stocks of companies like Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL), and Mazagon Dock Shipbuilders saw sharp gains, some climbing as much as 5 per cent. This surge underscores investor confidence in the defence sector, with an anticipated boost in military procurement and operations. On the global stage, companies such as Dassault Aviation, makers of Rafale jets, also saw increased buying interest, highlighting a worldwide trend toward strengthening defence capabilities amid geopolitical uncertainty. Indian rupee takes a hit On the currency front, the Indian rupee extended its slide on Friday after falling 1.1 per cent to reach ₹85.57 per dollar, marking its sharpest decline since February 2022. The rupee's drop reflects growing investor caution amid geopolitical instability and heightened demand for the safe-haven US Dollar. Pakistan's KSE-100 gyrates wildly Pakistan’s KSE-100 index see-sawed throughout the day, eventually posting strong gains. It closed 3.52 per cent higher at 107,174.64, up 3,647.82 points. Over the past three sessions, the Pakistan Stock Exchange has shed over 10 per cent, reflecting growing fears of economic instability and anxiety ahead of an IMF board review. Rising tensions: India-Pakistan standoff escalates On the ground, military activity has surged on both sides of the border. In response to rising threats, India has bolstered security in New Delhi, deploying additional forces and enhancing surveillance. In a strategic move, India has suspended trade ties with Pakistan and is actively reviewing the Indus Waters Treaty, signalling a hardening stance. Diplomatic relations remain tense, with both nations summoning each other's High Commissioners for the third time this week, emphasizing the severity of the situation. Given the ongoing geopolitical risks, experts predict continued market volatility in both Indian and Pakistani stock markets. While defence stocks may continue to see strong interest, aviation, tourism, and logistics sectors are expected to remain under pressure. Investors remain cautious as the situation remains fluid, with the potential for further escalation in the coming days.

India-Pakistan tension: NIFTY, Sensex and KSE remain volatile amid escalating conflict

<div class="x_elementToProof">The stage is set for a high-stakes round of trade negotiations between the United States and China this weekend, with officials from both sides arriving in Geneva for what could be a turning point in their long-running tariff war.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Slated to begin on May 10, the talks come at a time of deepening economic friction&mdash;friction that&rsquo;s rattled global supply chains, commodity markets, and investor confidence. According to Reuters, US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will lead the American delegation, while China&rsquo;s Vice Premier He Lifeng will represent Beijing.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">This is the first formal engagement between the two powers since Donald Trump returned to the White House, making it a critical moment for both bilateral relations and the broader global economy.</div>
<div class="x_elementToProof"></div>
<h2 class="x_elementToProof"><b>Why Geneva?</b></h2>
<div class="x_elementToProof">According to Bloomberg, Geneva was chosen to underscore neutrality and multilateralism. The city is home to the World Trade Organization (WTO) and has historically served as a venue for tense international negotiations. For Washington and Beijing, it offers diplomatic cover, toning down the nationalism that&rsquo;s often flared in meetings held in their own capitals.</div>
<div class="x_elementToProof"></div>
<h2 class="x_elementToProof"><b>Backdrop: The tariff tussle</b></h2>
<div class="x_elementToProof">Tensions flared in April 2025 when President Trump imposed a 145 per cent tariff on Chinese imports, citing national security and trade imbalances. Beijing responded swiftly with 125 per cent tariffs on US goods, sending bilateral trade into a nosedive.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Despite the harsh rhetoric, there&rsquo;s still interest in dialogue. China&rsquo;s Ministry of Commerce said it is &ldquo;evaluating&rdquo; the US outreach but pushed back against &ldquo;pressure tactics.&rdquo; On May 5, spokesperson He Yongqian made Beijing&rsquo;s stance clear: &ldquo;Pressure, threats, and blackmail are not the way to deal with China. We hope the two countries will meet halfway and resolve differences through dialogue, based on mutual respect and win-win cooperation.&rdquo;</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Beijing has also reiterated that it&rsquo;s ready to &ldquo;fight to the end&rdquo; if provoked. But even as it talks tough, China is bolstering its domestic economy to withstand the pressure&mdash;encouraging foreign firms to tap into its massive local market and boosting domestic consumption.</div>
<div class="x_elementToProof"></div>
<h2 class="x_elementToProof"><b>Impact of the trade war</b><b></b></h2>
<div class="x_elementToProof">The tariff war is no longer just diplomatic theater&mdash;it&rsquo;s biting into real economies.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">In China, the services sector&mdash;a major employer and a barometer of consumer confidence&mdash;is faltering. As reported by Reuters, the Caixin/S&amp;P Global Services PMI slipped to 50.7 in April 2025 from 51.9 in March, while the official PMI dropped to 50.1 from 50.3. Both figures signal slowing growth. With nearly 50 per cent of China&rsquo;s workforce in services, this deceleration raises red flags.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Trade data adds to the concern. According to China&rsquo;s General Administration of Customs, exports to the US dropped 17.6 per cent from March to April, plunging from $ 40.1 billion to $ 33.0 billion&mdash;the lowest in five years. This sharp fall shows how deeply tariffs are cutting into cross-border commerce.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">To counter this, the People&rsquo;s Bank of China (PBOC) has eased monetary policy. China Daily reports the PBOC lowered the seven-day reverse repo rate by 10 basis points to 1.40 per cent and cut the reserve requirement ratio (RRR) by 50 basis points, injecting about 1,000 billion yuan ( $ 138.6 billion) into the economy.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">According to data published by China's General Administration of Customs. China's exports to the US fell 17.6 per cent month-on-month in April. This comes as Beijing navigates a high-stakes trade war with Washington. While the shipments to the US totalled $33.0 billion last month, falling from $40.1 billion in March.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Meanwhile in the US, the costs of the trade war are also mounting. In March 2025, the US Census Bureau recorded the country&rsquo;s largest-ever trade deficit: $ 140.5 billion. This spike was largely due to a 4.4 per cent surge in imports, as businesses rushed to stock up on goods&mdash;especially pharmaceuticals&mdash;before Trump&rsquo;s tariffs took effect. On the other hand, exports remained flat.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">That stockpiling is already backfiring. The US economy shrank by 0.3 per cent in Q1 2025, its first contraction in three years. Economists warn that as inventories are depleted and trade slows, domestic production could suffer and inflation could rise.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Citing this uncertainty, the Federal Reserve on May 7 held interest rates steady at 4.25 to 4.50 per cent. Fed Chair Jerome Powell said the central bank will &ldquo;monitor the data closely&rdquo; before making any further moves, highlighting the risk of economic fallout from prolonged</div>
<div class="x_elementToProof"></div>

Business & Economy: This meeting marks the first official dialogue since Donald Trump resumed his presidency, highlighting its significance for US-China relations and the global economy.

The stage is set for a high-stakes round of trade negotiations between the United States and China this weekend, with officials from both sides arriving in Geneva for what could be a turning point in their long-running tariff war. Slated to begin on May 10, the talks come at a time of deepening economic friction—friction that’s rattled global supply chains, commodity markets, and investor confidence. According to Reuters, US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will lead the American delegation, while China’s Vice Premier He Lifeng will represent Beijing. This is the first formal engagement between the two powers since Donald Trump returned to the White House, making it a critical moment for both bilateral relations and the broader global economy. Why Geneva? According to Bloomberg, Geneva was chosen to underscore neutrality and multilateralism. The city is home to the World Trade Organization (WTO) and has historically served as a venue for tense international negotiations. For Washington and Beijing, it offers diplomatic cover, toning down the nationalism that’s often flared in meetings held in their own capitals. Backdrop: The tariff tussle Tensions flared in April 2025 when President Trump imposed a 145 per cent tariff on Chinese imports, citing national security and trade imbalances. Beijing responded swiftly with 125 per cent tariffs on US goods, sending bilateral trade into a nosedive. Despite the harsh rhetoric, there’s still interest in dialogue. China’s Ministry of Commerce said it is “evaluating” the US outreach but pushed back against “pressure tactics.” On May 5, spokesperson He Yongqian made Beijing’s stance clear: “Pressure, threats, and blackmail are not the way to deal with China. We hope the two countries will meet halfway and resolve differences through dialogue, based on mutual respect and win-win cooperation.” Beijing has also reiterated that it’s ready to “fight to the end” if provoked. But even as it talks tough, China is bolstering its domestic economy to withstand the pressure—encouraging foreign firms to tap into its massive local market and boosting domestic consumption. Impact of the trade war The tariff war is no longer just diplomatic theater—it’s biting into real economies. In China, the services sector—a major employer and a barometer of consumer confidence—is faltering. As reported by Reuters, the Caixin/S&P Global Services PMI slipped to 50.7 in April 2025 from 51.9 in March, while the official PMI dropped to 50.1 from 50.3. Both figures signal slowing growth. With nearly 50 per cent of China’s workforce in services, this deceleration raises red flags. Trade data adds to the concern. According to China’s General Administration of Customs, exports to the US dropped 17.6 per cent from March to April, plunging from $ 40.1 billion to $ 33.0 billion—the lowest in five years. This sharp fall shows how deeply tariffs are cutting into cross-border commerce. To counter this, the People’s Bank of China (PBOC) has eased monetary policy. China Daily reports the PBOC lowered the seven-day reverse repo rate by 10 basis points to 1.40 per cent and cut the reserve requirement ratio (RRR) by 50 basis points, injecting about 1,000 billion yuan ( $ 138.6 billion) into the economy. According to data published by China's General Administration of Customs. China's exports to the US fell 17.6 per cent month-on-month in April. This comes as Beijing navigates a high-stakes trade war with Washington. While the shipments to the US totalled $33.0 billion last month, falling from $40.1 billion in March. Meanwhile in the US, the costs of the trade war are also mounting. In March 2025, the US Census Bureau recorded the country’s largest-ever trade deficit: $ 140.5 billion. This spike was largely due to a 4.4 per cent surge in imports, as businesses rushed to stock up on goods—especially pharmaceuticals—before Trump’s tariffs took effect. On the other hand, exports remained flat. That stockpiling is already backfiring. The US economy shrank by 0.3 per cent in Q1 2025, its first contraction in three years. Economists warn that as inventories are depleted and trade slows, domestic production could suffer and inflation could rise. Citing this uncertainty, the Federal Reserve on May 7 held interest rates steady at 4.25 to 4.50 per cent. Fed Chair Jerome Powell said the central bank will “monitor the data closely” before making any further moves, highlighting the risk of economic fallout from prolonged

US-China trade talk: Will weekend Geneva meet tackle tariff deadlock?

<p dir="ltr"><span>As tensions escalate between India and Pakistan, Chinese defence stocks are rising, fuelled by expectations of a boost in exports from Chinese defence manufacturing companies.</span></p>
<p dir="ltr"><span>Over the past decade, China has become the primary supplier of military hardware to Pakistan, including fighter jets, submarines, frigates, drones, and missile systems.</span></p>
<p dir="ltr"><span>Between 2020 and 2024, China emerged as the largest seller of weapons to Pakistan, accounting for 81 per cent of its imports, followed by the Netherlands at 5.5 per cent and Turkey at 3.8 per cent. From 2009 to 2014, China represented 51 per cent of Pakistan&rsquo;s total military imports, which rose to 73 per cent between 2015 and 2019.</span></p>
<p dir="ltr"><span>In the case of China, Pakistan has become its largest defence export market, accounting for 63 per cent of its exports in 2020-24 as compared to 41 per cent in 2009-14.</span></p>
<p dir="ltr"><span>This heavy military dependence of Pakistan has led to rising investor confidence in Chinese defence stocks. China and Pakistan have long-standing political ties, with diplomatic relations established in 1951. China has also been Pakistan's most important defence partner since the end of the Cold War, according to the US Institute of Peace.</span></p>
<p dir="ltr"><span>CNBC reported that AVIC, through its subsidiary AVIC Chengdu Aircraft, manufactures the J-10C fighter jets reportedly used by Pakistan in the recent conflict. Another subsidiary, AVIC Aerospace, which produces military aircraft and helicopters, saw its Hong Kong-listed shares rise over 6 per cent. And Shenzhen-listed stocks of AVIC Chengdu Aircraft surged as much as over 16 per cent. It last traded 8.31 per cent higher at 11.40 a.m. local time. On Wednesday, its stocks rose 17.05 per cent, marking the most significant gain since last October.</span></p>
<p dir="ltr"><span>Shares of China State Shipbuilding Corporation, which builds military and civilian vessels, inched up 0.4 per cent.</span></p>
<h2 dir="ltr"><span>China-Pakistan defence deals</span></h2>
<p dir="ltr"><span>Over the years, Pakistan has secured several major defence deals with China, with the estimated total value of these agreements spanning billions of dollars. In 2015, Pakistan signed a deal worth $5 billion for eight Type-041 submarines. Three years later, in 2018, it purchased four Type-054A/P frigates for approximately $1.4 billion.</span></p>
<p dir="ltr"><span>The following years saw further acquisitions, including the purchase of 36 J-10CE jets in 2022 for an estimated $1.5&ndash;2 billion. Since 2007, the JF-17 Fighter Jet Programme has been a significant investment, with an estimated cost of $2&ndash;3 billion. In 2018, Pakistan also acquired 48 Wing Loong II drones, costing around $200&ndash;300 million.</span></p>
<p dir="ltr"><span>More recently, in 2021, Pakistan bought HQ-9 surface-to-air missile defence systems and PL-15 air-to-air missiles for about $650&ndash;900 million, and in 2022, it purchased Z-10ME helicopters for an estimated $150&ndash;240 million.</span></p>
<p dir="ltr"><span>Throughout these transactions, China has supported Pakistan with low-interest financing and flexible payment terms, enabling the country to continue these imports despite its ongoing economic challenges.</span></p>
<p dir="ltr"><span>Pakistan was the fifth largest buyer of arms in 2020-24, its share jumping to 4.6 per cent from 2.8 per cent in 2015-19.</span></p>
<p>&nbsp;</p>

Business & Economy: Between 2020 and 2024, China emerged as the largest seller of weapons to Pakistan, accounting for 81 per cent of its imports

As tensions escalate between India and Pakistan, Chinese defence stocks are rising, fuelled by expectations of a boost in exports from Chinese defence manufacturing companies. Over the past decade, China has become the primary supplier of military hardware to Pakistan, including fighter jets, submarines, frigates, drones, and missile systems. Between 2020 and 2024, China emerged as the largest seller of weapons to Pakistan, accounting for 81 per cent of its imports, followed by the Netherlands at 5.5 per cent and Turkey at 3.8 per cent. From 2009 to 2014, China represented 51 per cent of Pakistan’s total military imports, which rose to 73 per cent between 2015 and 2019. In the case of China, Pakistan has become its largest defence export market, accounting for 63 per cent of its exports in 2020-24 as compared to 41 per cent in 2009-14. This heavy military dependence of Pakistan has led to rising investor confidence in Chinese defence stocks. China and Pakistan have long-standing political ties, with diplomatic relations established in 1951. China has also been Pakistan's most important defence partner since the end of the Cold War, according to the US Institute of Peace. CNBC reported that AVIC, through its subsidiary AVIC Chengdu Aircraft, manufactures the J-10C fighter jets reportedly used by Pakistan in the recent conflict. Another subsidiary, AVIC Aerospace, which produces military aircraft and helicopters, saw its Hong Kong-listed shares rise over 6 per cent. And Shenzhen-listed stocks of AVIC Chengdu Aircraft surged as much as over 16 per cent. It last traded 8.31 per cent higher at 11.40 a.m. local time. On Wednesday, its stocks rose 17.05 per cent, marking the most significant gain since last October. Shares of China State Shipbuilding Corporation, which builds military and civilian vessels, inched up 0.4 per cent. China-Pakistan defence deals Over the years, Pakistan has secured several major defence deals with China, with the estimated total value of these agreements spanning billions of dollars. In 2015, Pakistan signed a deal worth $5 billion for eight Type-041 submarines. Three years later, in 2018, it purchased four Type-054A/P frigates for approximately $1.4 billion. The following years saw further acquisitions, including the purchase of 36 J-10CE jets in 2022 for an estimated $1.5–2 billion. Since 2007, the JF-17 Fighter Jet Programme has been a significant investment, with an estimated cost of $2–3 billion. In 2018, Pakistan also acquired 48 Wing Loong II drones, costing around $200–300 million. More recently, in 2021, Pakistan bought HQ-9 surface-to-air missile defence systems and PL-15 air-to-air missiles for about $650–900 million, and in 2022, it purchased Z-10ME helicopters for an estimated $150–240 million. Throughout these transactions, China has supported Pakistan with low-interest financing and flexible payment terms, enabling the country to continue these imports despite its ongoing economic challenges. Pakistan was the fifth largest buyer of arms in 2020-24, its share jumping to 4.6 per cent from 2.8 per cent in 2015-19.

Rising tensions between India and Pakistan propel surge in Chinese defence stocks

<p dir="ltr"><span>The US Federal Reserve decided to keep key interest rates unchanged at 4.25 per cent &ndash; 4.5 per cent on May 07, even as US President Trump pushed for the central bank to cut rates immediately.</span></p>
<p dir="ltr"><span>The Fed cited economic uncertainty due to Trump's trade wars on multiple fronts and recent mixed business activity data.</span></p>
<p dir="ltr"><span>"In support of our goals, today the Federal Open Market Committee decided to leave our policy interest rate unchanged. The risks of higher unemployment and higher inflation appear to have risen, and we believe that the current stance of monetary policy leaves us well positioned to respond, in a timely way, to potential economic developments," said Federal Reserve Chair Jerome Powell.</span></p>
<p dir="ltr"><span>The decision reflects the central bank's cautious stance in managing inflationary pressures and a possible economic slowdown, which is in line with market expectations.</span></p>
<p dir="ltr"><span>&ldquo;Uncertainty about the economic outlook has increased further,&rdquo; the post-meeting statement said. &ldquo;The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen.&rdquo;</span></p>
<p dir="ltr"><span>The Federal Reserve and the stock market had expected lower rates this year as the economy slows down. But the tariffs could throw a wrench in those gears, Fed Chair Jerome Powell said, declining to commit to any rate cuts in 2025.</span></p>
<h2 dir="ltr"><span>Power play: Trump pushes, Powell holds</span></h2>
<p dir="ltr"><span>Donald Trump, who promised lower rates while campaigning for re-election last year, has frequently lashed out on Powell and the Federal Reserve for not easing the monetary policies. Trump has called on the Fed to lower rates "pre-emptively" and flirted with firing the head of the bank, criticising Powell as "a major loser" and "Mr Too Late" for not cutting rates fast enough.</span></p>
<p dir="ltr"><span>In response toTrump and Vice President JD Vance&rsquo;s repeated calls for lower interest rates, asserting the Fed&rsquo;s independence Powell said, &ldquo;We are always going to do the same thing...use our tools to foster maximum employment and price stability...That&rsquo;s all we are going to consider,&rdquo; he said, adding that political pressure has &ldquo;no effect at all&rdquo; on the Federal Open Market Committee&rsquo;s decisions.</span></p>
<p dir="ltr"><span>Warning against the possible implications of the tariffs, Powell said, &ldquo;If the large increases in tariffs that have been announced are sustained, they are likely to generate a rise in inflation, a slowdown in economic growth, and an increase in unemployment&rdquo;. He also warned these effects could be long-lasting depending on how the situation evolves.&nbsp;</span></p>
<p dir="ltr"><span>Further replying to a question at the press conference about the supply chain disruption he said, </span><span>&ldquo;I mean, we don&rsquo;t have the kind of tools that are good at dealing with supply chain problems&hellip;We don&rsquo;t have that at all. That&rsquo;s a job for the administration and for the private sector more than anything.&rdquo;</span></p>
<p dir="ltr"><span>In theory, the Fed could lower interest rates to boost demand&mdash;but &ldquo;that would be a very inefficient way to try to fix supply chain problems,&rdquo; he added.</span></p>
<h2 dir="ltr"><span>The US economy</span></h2>
<p dir="ltr"><span>Real gross domestic product (GDP) of the United States decreased at an annual rate of 0.3 per cent in the first quarter of 2025 (January to March), according to the advance estimate released by the US Bureau of Economic Analysis, while the fourth quarter saw an increase of 2.4 per cent in real GDP.</span></p>
<p dir="ltr"><span>Compared to the fourth quarter, the downturn in real GDP in the first quarter reflected an upturn in imports and a downturn in consumer and government spending that were partly offset by upturns in investment and exports. Despite the recent decline, many economists expect the economy will return to positive growth in the second quarter.</span></p>
<p dir="ltr"><span>Employment growth remained positive despite Trump&rsquo;s efforts to pare down the federal workforce. The nonfarm payrolls increased by 177,000 in April, and the unemployment rate held at 4.2 per cent, giving the Fed room to breathe if it expects a further economic slowdown.</span></p>
<p dir="ltr"><span>Inflation, one of the biggest concerns of the central bank, has been ticking lower and approaching the Fed&rsquo;s 2 per cent target, but tariffs are expected to result in at least a one-time rise in prices. However, Trump has pushed the Fed to cut rates as inflation has eased. The central bank&rsquo;s preferred gauge showed headline inflation at 2.3 per cent, or 2.6 per cent on core that excludes food and energy.</span></p>
<p dir="ltr"><span>While the economic indicators offer a mixed bag, it all depends on what happens with tariffs.</span></p>
<p dir="ltr"><span>Powell said there are cases in which it would be appropriate for the Fed to cut rates this year, but there are cases in which it wouldn&rsquo;t.</span></p>
<p dir="ltr"><span>&ldquo;And we just don&rsquo;t know until we know more about how this is going to settle out and what the economic implications are for employment and for inflation. I couldn&rsquo;t confidently say that I know what the appropriate path will be,&rdquo; Powell said at a news conference following the central bank&rsquo;s latest policy decision.</span></p>
<p dir="ltr"><span>Although Powell said tariffs won&rsquo;t change the Fed&rsquo;s mission to keep unemployment and inflation low, they could complicate it.</span></p>
<h2 dir="ltr"><span>Trade deals in focus</span></h2>
<p dir="ltr"><span>On April 02, US President Donald Trump announced steep tariffs on dozens of trading partners, but he later announced a 90-day pause on the levies. Governments from around the world have been trying to strike deals with the United States before the new deadline passes.</span></p>
<p dir="ltr"><span>According to recent media reports, Washington is close to finalising trade deals with India and Israel. The US administration is also in talks with several other countries, including Japan, South Korea, and Vietnam. Trump has said he wants nations to strike new deals with the US as he tries to radically reshape the global trading system.</span></p>
<p dir="ltr"><span>The country is also set to start a high-stakes meeting with China in Switzerland this weekend as a rapidly escalating trade war continues to threaten the two largest economies, however both have indicated that the focus will only be on &ldquo;de-escalation&rdquo;.&nbsp;</span></p>
<p dir="ltr"><span>On May 06, The US President has teased what he called a "major trade deal", which would mark the first such agreement to be announced since he imposed tariffs on dozens of America's trading partners.&nbsp;</span></p>
<p dir="ltr"><span>At a post-meeting press conference, the Fed Chair said, &ldquo;We are entering a new phase where the administration is entering into beginning talks with a number of our important trading partners, and that has the potential to change the (economic) picture materially or not.&rdquo;</span></p>
<p dir="ltr"><span>&ldquo;The Trump administration is considering nearly 18 trade proposals, and some of them are in advanced stages,&rdquo; said Treasury Secretary Scott Bessent on May 06.</span></p>
<h2 dir="ltr"><span>Markets reaction</span></h2>
<p dir="ltr"><span>The US stocks bounced around on May 07 as investors assessed Fed Chair Jerome Powell&rsquo;s remarks about the outlook for the economy after the central bank held rates steady, matching the market expectations.</span></p>
<p dir="ltr"><span>As per Bloomberg data, the Dow Jones Futures was up 284.97 points, or 0.7 per cent, after briefly sliding as the decision to hold rates steady was announced. The S&amp;P 500 was up 0.43 per cent after shifting between gains and losses, and the Nasdaq Composite was up 0.27 per cent. The US dollar index, which measures the dollar&rsquo;s strength against six major foreign currencies, gained 0.39 per cent.</span></p>
<p dir="ltr"><span>(</span><em>With inputs from agencies</em><span>)</span></p>
<p>&nbsp;</p>

Business & Economy: The US Federal Reserve decided to keep key interest rates unchanged at 4.25 per cent – 4.5 per cent, even as US President Trump pushed to cut rates.

The US Federal Reserve decided to keep key interest rates unchanged at 4.25 per cent – 4.5 per cent on May 07, even as US President Trump pushed for the central bank to cut rates immediately. The Fed cited economic uncertainty due to Trump's trade wars on multiple fronts and recent mixed business activity data. "In support of our goals, today the Federal Open Market Committee decided to leave our policy interest rate unchanged. The risks of higher unemployment and higher inflation appear to have risen, and we believe that the current stance of monetary policy leaves us well positioned to respond, in a timely way, to potential economic developments," said Federal Reserve Chair Jerome Powell. The decision reflects the central bank's cautious stance in managing inflationary pressures and a possible economic slowdown, which is in line with market expectations. “Uncertainty about the economic outlook has increased further,” the post-meeting statement said. “The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen.” The Federal Reserve and the stock market had expected lower rates this year as the economy slows down. But the tariffs could throw a wrench in those gears, Fed Chair Jerome Powell said, declining to commit to any rate cuts in 2025. Power play: Trump pushes, Powell holds Donald Trump, who promised lower rates while campaigning for re-election last year, has frequently lashed out on Powell and the Federal Reserve for not easing the monetary policies. Trump has called on the Fed to lower rates "pre-emptively" and flirted with firing the head of the bank, criticising Powell as "a major loser" and "Mr Too Late" for not cutting rates fast enough. In response toTrump and Vice President JD Vance’s repeated calls for lower interest rates, asserting the Fed’s independence Powell said, “We are always going to do the same thing...use our tools to foster maximum employment and price stability...That’s all we are going to consider,” he said, adding that political pressure has “no effect at all” on the Federal Open Market Committee’s decisions. Warning against the possible implications of the tariffs, Powell said, “If the large increases in tariffs that have been announced are sustained, they are likely to generate a rise in inflation, a slowdown in economic growth, and an increase in unemployment”. He also warned these effects could be long-lasting depending on how the situation evolves. Further replying to a question at the press conference about the supply chain disruption he said, “I mean, we don’t have the kind of tools that are good at dealing with supply chain problems…We don’t have that at all. That’s a job for the administration and for the private sector more than anything.” In theory, the Fed could lower interest rates to boost demand—but “that would be a very inefficient way to try to fix supply chain problems,” he added. The US economy Real gross domestic product (GDP) of the United States decreased at an annual rate of 0.3 per cent in the first quarter of 2025 (January to March), according to the advance estimate released by the US Bureau of Economic Analysis, while the fourth quarter saw an increase of 2.4 per cent in real GDP. Compared to the fourth quarter, the downturn in real GDP in the first quarter reflected an upturn in imports and a downturn in consumer and government spending that were partly offset by upturns in investment and exports. Despite the recent decline, many economists expect the economy will return to positive growth in the second quarter. Employment growth remained positive despite Trump’s efforts to pare down the federal workforce. The nonfarm payrolls increased by 177,000 in April, and the unemployment rate held at 4.2 per cent, giving the Fed room to breathe if it expects a further economic slowdown. Inflation, one of the biggest concerns of the central bank, has been ticking lower and approaching the Fed’s 2 per cent target, but tariffs are expected to result in at least a one-time rise in prices. However, Trump has pushed the Fed to cut rates as inflation has eased. The central bank’s preferred gauge showed headline inflation at 2.3 per cent, or 2.6 per cent on core that excludes food and energy. While the economic indicators offer a mixed bag, it all depends on what happens with tariffs. Powell said there are cases in which it would be appropriate for the Fed to cut rates this year, but there are cases in which it wouldn’t. “And we just don’t know until we know more about how this is going to settle out and what the economic implications are for employment and for inflation. I couldn’t confidently say that I know what the appropriate path will be,” Powell said at a news conference following the central bank’s latest policy decision. Although Powell said tariffs won’t change the Fed’s mission to keep unemployment and inflation low, they could complicate it. Trade deals in focus On April 02, US President Donald Trump announced steep tariffs on dozens of trading partners, but he later announced a 90-day pause on the levies. Governments from around the world have been trying to strike deals with the United States before the new deadline passes. According to recent media reports, Washington is close to finalising trade deals with India and Israel. The US administration is also in talks with several other countries, including Japan, South Korea, and Vietnam. Trump has said he wants nations to strike new deals with the US as he tries to radically reshape the global trading system. The country is also set to start a high-stakes meeting with China in Switzerland this weekend as a rapidly escalating trade war continues to threaten the two largest economies, however both have indicated that the focus will only be on “de-escalation”. On May 06, The US President has teased what he called a "major trade deal", which would mark the first such agreement to be announced since he imposed tariffs on dozens of America's trading partners. At a post-meeting press conference, the Fed Chair said, “We are entering a new phase where the administration is entering into beginning talks with a number of our important trading partners, and that has the potential to change the (economic) picture materially or not.” “The Trump administration is considering nearly 18 trade proposals, and some of them are in advanced stages,” said Treasury Secretary Scott Bessent on May 06. Markets reaction The US stocks bounced around on May 07 as investors assessed Fed Chair Jerome Powell’s remarks about the outlook for the economy after the central bank held rates steady, matching the market expectations. As per Bloomberg data, the Dow Jones Futures was up 284.97 points, or 0.7 per cent, after briefly sliding as the decision to hold rates steady was announced. The S&P 500 was up 0.43 per cent after shifting between gains and losses, and the Nasdaq Composite was up 0.27 per cent. The US dollar index, which measures the dollar’s strength against six major foreign currencies, gained 0.39 per cent. (With inputs from agencies)

US Federal Reserve holds key rates amid tariff-driven uncertainties, warns against inflation

<p>US President <a href="https://www.wionews.com/tags/donald-trump">Donald Trump</a> made an announcement on <a href="https://www.wionews.com/tags/truth-social">Truth Social</a> that he plans to hold a press conference with news on a 'major <a href="https://www.wionews.com/tags/trade-deal">trade deal</a>'<span> with a "big, highly respected country".</span></p>
<p>"Big News Conference tomorrow morning at 10:00 A.M., The Oval Office, concerning a MAJOR TRADE DEAL WITH REPRESENTATIVES OF A BIG, AND HIGHLY RESPECTED, COUNTRY. THE FIRST OF MANY!!!" Trump wrote on Truth Social.</p>
<p><iframe width="600" height="" style="max-width: 100%; border: 0;" src="https://truthsocial.com/@realDonaldTrump/114469488580251681/embed" class="truthsocial-embed" allowfullscreen="allowfullscreen"></iframe>
<script src="https://truthsocial.com/embed.js" async="async"></script>
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<p><span>Several media publication in the US have reported the deal would be with the United Kingdom. According to reports, </span><span>The UK and US have been in discussions about an economic agreement that would reduce the impact of some tariffs.<br></span></p>
<p><strong>Also Read: <a href="https://www.wionews.com/world/operation-sindoor-pakistan-defence-minister-khwaja-asif-cites-social-media-posts-as-proof-to-validate-claims-of-downing-indian-jets-9046462">Pakistan Defence Minister Khwaja Asif cites social media posts as proof to validate claims of downing Indian jets</a></strong></p>
<p>Trump's tariff proposal was intended to force trade partners to the bargaining table, with the aim of winning more favorable terms for the US and reducing the trade deficit. He imposed a tough deadline: Tariffs kicked in on April 7, but were paused two days later for a 90-day negotiating period that is to lapse on July 8. If no agreements are reached, up to 50 per cent duties could reinstate themselves on scores of nations.</p>
<h2>'They are dying to make a deal'</h2>
<p>"I&rsquo;m telling you, these countries are calling us up, kissing my a**," Trump said last month ahead of the tariff implementation. "They are dying to make a deal. &lsquo;Please, please, sir, make a deal. I&rsquo;ll do anything. I&rsquo;ll do anything, sir!&rsquo;"</p>
<p><span>The White House did not immediately respond to comment on the country involved or scope of any potential deal.</span></p>
<p>In his post, Trump didn't mention the country, but his administration indicated that it is in active discussions with India, the United Kingdom, South Korea and Japan. Trump's chief trade adviser, Peter Navarro, said in an interview with CNN that he thinks that the UK might be the first nation to sign a trade agreement with the United States.</p>
<p>"I don't know if it's going to be UK first or India first, it's &mdash; we've got a little twist in the in this India story, so that might slow things down there, but I can assure the American people that there will be deals, and they will be very good deals for the American people," Navarro was quoted saying to CNN.</p>

Business & Economy, World: According to reports, The UK and the US have been in discussions about an economic agreement that would reduce the impact of some tariffs

US President Donald Trump made an announcement on Truth Social that he plans to hold a press conference with news on a 'major trade deal' with a "big, highly respected country". "Big News Conference tomorrow morning at 10:00 A.M., The Oval Office, concerning a MAJOR TRADE DEAL WITH REPRESENTATIVES OF A BIG, AND HIGHLY RESPECTED, COUNTRY. THE FIRST OF MANY!!!" Trump wrote on Truth Social. Several media publication in the US have reported the deal would be with the United Kingdom. According to reports, The UK and US have been in discussions about an economic agreement that would reduce the impact of some tariffs. Also Read: Pakistan Defence Minister Khwaja Asif cites social media posts as proof to validate claims of downing Indian jets Trump's tariff proposal was intended to force trade partners to the bargaining table, with the aim of winning more favorable terms for the US and reducing the trade deficit. He imposed a tough deadline: Tariffs kicked in on April 7, but were paused two days later for a 90-day negotiating period that is to lapse on July 8. If no agreements are reached, up to 50 per cent duties could reinstate themselves on scores of nations. 'They are dying to make a deal' "I’m telling you, these countries are calling us up, kissing my a**," Trump said last month ahead of the tariff implementation. "They are dying to make a deal. ‘Please, please, sir, make a deal. I’ll do anything. I’ll do anything, sir!’" The White House did not immediately respond to comment on the country involved or scope of any potential deal. In his post, Trump didn't mention the country, but his administration indicated that it is in active discussions with India, the United Kingdom, South Korea and Japan. Trump's chief trade adviser, Peter Navarro, said in an interview with CNN that he thinks that the UK might be the first nation to sign a trade agreement with the United States. "I don't know if it's going to be UK first or India first, it's — we've got a little twist in the in this India story, so that might slow things down there, but I can assure the American people that there will be deals, and they will be very good deals for the American people," Navarro was quoted saying to CNN.

US President Trump teases 'major trade deal' announcement with 'big, highly respected country': Reports

<p dir="ltr"><span>China&rsquo;s central bank is taking steps to stimulate the economy by cutting key policy rates in a bid to boost growth amid growing economic uncertainty and trade woes.</span></p>
<p dir="ltr"><span>The People's Bank of China (PBOC) said that it would lower the borrowing cost of its seven-day reverse repurchase rates by 10 basis points to 1.40 per cent from 1.50 per cent, according to an online statement, taking effect from May 08.</span></p>
<p dir="ltr"><span>The seven-day reverse repo rate now serves as the economy's main policy rate. A reduction in the borrowing cost could lead to similar cuts to other market rates and interest rates on other liquidity tools. The PBOC previously lowered the seven-day reverse repo rate by 20 basis points (bps) in September 2024.</span></p>
<p dir="ltr"><span>The central bank will also lower the reserve requirement ratio (RRR), which determines the amount of cash banks must hold in reserves, by 50 basis points, which will give additional liquidity of 1000 billion yuan ($138.6 billion) to the market.</span></p>
<p dir="ltr"><span>PBOC Governor Pan Gongsheng reiterated that officials will implement a &ldquo;moderately loose&rdquo; monetary policy, which will translate into ample liquidity and ensure funding with relatively low financing costs. The RRR cut can enhance the stability of bank liabilities, he said.</span></p>
<p dir="ltr"><span>This move is notable as China has focused more on stabilising its currency and managing bond market risks, rather than stimulating growth. But with the economy under pressure from trade tensions and internal demand softness, priorities are shifting.</span><span><br><br></span></p>
<h2 dir="ltr"><span>U.S.-China trade talk</span></h2>
<p dir="ltr"><span>The timing is significant as China&rsquo;s Vice Premier He Lifeng is scheduled to meet U.S. Treasury Secretary Scott Bessent later this week in Switzerland&mdash;the first confirmed trade talks between the countries since President Donald Trump announced sweeping tariffs, led by punishing levies on China.</span></p>
<p dir="ltr"><span>Bessent, in an interview on </span><span>Fox News</span><span>, said the talks will centre on de-escalation rather than a big trade deal. And President Trump also recently said that he is willing to lower tariffs on China at some point, but also said this week that the U.S. is &ldquo;losing nothing&rdquo; by not trading with Beijing.</span></p>
<p dir="ltr"><span>After the talks were announced, China&rsquo;s Ministry of Commerce said in a statement that the U.S. should &ldquo;show sincerity&rdquo; in the upcoming talks, correct wrong practices and resolve the concerns of both sides through &ldquo;equal consultation&rdquo;.</span></p>
<p dir="ltr"><span>The two nations have locked horns ever since Trump ratcheted up tariffs on Chinese goods to 145 per cent, prompting Beijing to retaliate with additional levies of 125 per cent on imports from the U.S.</span></p>
<p><b>&nbsp;</b></p>
<h2 dir="ltr"><span>Other key announcements</span></h2>
<p dir="ltr"><span>In a broader push to stabilise growth, China has also announced measures to support several key sectors, including technology and real estate, along with establishing a 500-billion-yuan (almost $692 million) relending tool for services consumption and elderly care. It has been announced that the quota for technology relending loans will increase to 800 billion yuan (approximately $1.1 billion) to support equipment upgrading, a consumer goods trade-in programme.</span></p>
<p dir="ltr"><span>The country&rsquo;s central bank plans to cut the mortgage rates under China&rsquo;s housing provident fund, a government-backed housing lender, by 25 basis points, and the rates on five-year loans for first-time homebuyers will be trimmed to 2.6 per cent from 2.85 per cent. PBOC will also gradually lower the amount of cash that auto financial companies and leasing firms must hold in reserves to zero from the current 5 per cent.</span></p>
<p dir="ltr"><span>PBOC expanded the allowance for the relending tool for agriculture and small and medium-sized enterprises by 300 billion yuan (around $415 million), along with combining two stock market support tools with a total quota of 800 billion yuan (about $1.1 billion).</span></p>
<p dir="ltr"><span>A debt risk-sharing tool will also be created, allowing the PBOC to provide low-cost relending funds to encourage purchases of bonds of technology firms.</span></p>
<p dir="ltr"><span>China is preparing more measures to support small and medium enterprises and the private sector, which will be announced soon, Li Yunze, the head of the financial regulatory administration, said at the briefing.</span></p>
<p dir="ltr"><span>The broad stimulus announcement showed the officials were acting with greater urgency to bolster the economy. Beijing had largely opted for piecemeal stimulus measures this year, while hinting that it had sufficient policy firepower to use &ldquo;when appropriate&rdquo;.<br></span></p>
<p dir="ltr"><span>(<em>With inputs from agencies</em>)</span></p>

Business & Economy: PBOC lowers the borrowing cost of its seven-day reverse repurchase rates by 10 basis points to 1.40 per cent, taking effect from May 08.

China’s central bank is taking steps to stimulate the economy by cutting key policy rates in a bid to boost growth amid growing economic uncertainty and trade woes. The People's Bank of China (PBOC) said that it would lower the borrowing cost of its seven-day reverse repurchase rates by 10 basis points to 1.40 per cent from 1.50 per cent, according to an online statement, taking effect from May 08. The seven-day reverse repo rate now serves as the economy's main policy rate. A reduction in the borrowing cost could lead to similar cuts to other market rates and interest rates on other liquidity tools. The PBOC previously lowered the seven-day reverse repo rate by 20 basis points (bps) in September 2024. The central bank will also lower the reserve requirement ratio (RRR), which determines the amount of cash banks must hold in reserves, by 50 basis points, which will give additional liquidity of 1000 billion yuan ($138.6 billion) to the market. PBOC Governor Pan Gongsheng reiterated that officials will implement a “moderately loose” monetary policy, which will translate into ample liquidity and ensure funding with relatively low financing costs. The RRR cut can enhance the stability of bank liabilities, he said. This move is notable as China has focused more on stabilising its currency and managing bond market risks, rather than stimulating growth. But with the economy under pressure from trade tensions and internal demand softness, priorities are shifting. U.S.-China trade talk The timing is significant as China’s Vice Premier He Lifeng is scheduled to meet U.S. Treasury Secretary Scott Bessent later this week in Switzerland—the first confirmed trade talks between the countries since President Donald Trump announced sweeping tariffs, led by punishing levies on China. Bessent, in an interview on Fox News, said the talks will centre on de-escalation rather than a big trade deal. And President Trump also recently said that he is willing to lower tariffs on China at some point, but also said this week that the U.S. is “losing nothing” by not trading with Beijing. After the talks were announced, China’s Ministry of Commerce said in a statement that the U.S. should “show sincerity” in the upcoming talks, correct wrong practices and resolve the concerns of both sides through “equal consultation”. The two nations have locked horns ever since Trump ratcheted up tariffs on Chinese goods to 145 per cent, prompting Beijing to retaliate with additional levies of 125 per cent on imports from the U.S. Other key announcements In a broader push to stabilise growth, China has also announced measures to support several key sectors, including technology and real estate, along with establishing a 500-billion-yuan (almost $692 million) relending tool for services consumption and elderly care. It has been announced that the quota for technology relending loans will increase to 800 billion yuan (approximately $1.1 billion) to support equipment upgrading, a consumer goods trade-in programme. The country’s central bank plans to cut the mortgage rates under China’s housing provident fund, a government-backed housing lender, by 25 basis points, and the rates on five-year loans for first-time homebuyers will be trimmed to 2.6 per cent from 2.85 per cent. PBOC will also gradually lower the amount of cash that auto financial companies and leasing firms must hold in reserves to zero from the current 5 per cent. PBOC expanded the allowance for the relending tool for agriculture and small and medium-sized enterprises by 300 billion yuan (around $415 million), along with combining two stock market support tools with a total quota of 800 billion yuan (about $1.1 billion). A debt risk-sharing tool will also be created, allowing the PBOC to provide low-cost relending funds to encourage purchases of bonds of technology firms. China is preparing more measures to support small and medium enterprises and the private sector, which will be announced soon, Li Yunze, the head of the financial regulatory administration, said at the briefing. The broad stimulus announcement showed the officials were acting with greater urgency to bolster the economy. Beijing had largely opted for piecemeal stimulus measures this year, while hinting that it had sufficient policy firepower to use “when appropriate”. (With inputs from agencies)

China cuts key rates, boosts liquidity ahead of US trade talk