Month: July 2018

"Heightened trade and geopolitical tensions" are putting global economic growth at risk, G-20 finance ministers said after two days of meetings in Buenos Aires on Sunday. In their final communique, the Group of 20 ministers stressed the need to "step up dialogue and actions to mitigate risks and enhance confidence." The ministers, representing industrial and emerging-market nations, described the overall world economic growth as "robust," but expressed concerns over what they call the increased risks of the "short and medium term." They did not mention the United States by name in their closing statement. But some decried President Donald Trump's tough trade rhetoric and tariffs on Chinese and European imports. European Union finance chief Pierre Moscovici urged the U.S. to act like allies, not foes. French finance minister Bruno Le…

Prime Minister Theresa May's plans to leave the European Union are overwhelmingly opposed by the British public and more than a third of voters would support a new right-wing political party committed to quitting the bloc, according to a new poll. May's political vulnerability was exposed by the survey which found voters would prefer Boris Johnson, who quit as her foreign minister two weeks ago, to negotiate with the EU and lead the Conservative Party into the next election. Only 16 percent of voters say May is handling the Brexit negotiations well, compared with 34 percent who say that Johnson would do a better job, according to the poll conducted by YouGov for The Sunday Times newspaper. With a little more than eight months to go before Britain is due…

Prime Minister Theresa May's plans to leave the European Union are overwhelmingly opposed by the British public and more than a third of voters would support a new right-wing political party committed to quitting the bloc, according to a new poll. May's political vulnerability was exposed by the survey which found voters would prefer Boris Johnson, who quit as her foreign minister two weeks ago, to negotiate with the EU and lead the Conservative Party into the next election. Only 16 percent of voters say May is handling the Brexit negotiations well, compared with 34 percent who say that Johnson would do a better job, according to the poll conducted by YouGov for The Sunday Times newspaper. With a little more than eight months to go before Britain is due…

German industry groups warned Sunday, ahead of a meeting between European Commission President Jean-Claude Juncker and U.S. President Donald Trump, that tariffs the United States has recently imposed or threatened risk harming the U.S. itself. The U.S. imposed tariffs on EU steel and aluminum June 1, and Trump is threatening to extend them to EU cars and car parts. Juncker will discuss trade with Trump at a meeting Wednesday. Dieter Kempf, head of Germany’s BDI industry association, told the Welt am Sonntag newspaper it was wise for the European Union and United States to continue their discussions. German auto industry “The tariffs under the guise of national security should be abolished,” Kempf said, adding that Juncker needed to make clear to Trump that the United States would harm itself with…

Fiat Chrysler named on Saturday its Jeep division boss, Mike Manley, to take over immediately for Chief Executive Sergio Marchionne, who is seriously ill after suffering major complications following surgery. The carmaker said British-born Manley, who also takes responsibility for the North America region, will push ahead with the midterm strategy outlined last month by Marchionne, who had been due to step down next April. Marchionne, 66, was credited with rescuing Fiat and Chrysler from bankruptcy after taking the Italian carmaker's wheel in 2004. On Saturday, he was also replaced as chairman and CEO of Ferrari and chairman of tractor maker CNH Industrial — both spun off from Fiat Chrysler Automobiles in recent years. "FCA communicates with profound sorrow that during the course of this week unexpected complications arose while…

Iran's Supreme Leader Ayatollah Ali Khamenei on Saturday backed President Hassan Rouhani's suggestion that Iran may block Gulf oil exports if its own exports are stopped and said negotiations with the United States would be an "obvious mistake." Rouhani's apparent threat earlier this month to disrupt oil shipments from neighboring countries came in reaction to looming U.S. sanctions and efforts by Washington to force all countries to stop buying Iranian oil. "(Khamenei) said remarks by the president ... that 'if Iran's oil is not exported, no regional country's oil will be exported,' were important remarks that reflect the policy and the approach of (Iran's) system," Khamenei's official website said. Iranian officials have in the past threatened to block the Strait of Hormuz, a major oil shipping route, in retaliation for…

U.S. Republican lawmakers have dropped their efforts to reimpose a crippling ban on exports to the Chinese telecommunications giant ZTE.  The move Friday gives a victory to U.S. President Donald Trump who has championed for ZTE to stay in business.  Republican senators Friday dropped legislation that would block ZTE from buying component parts from the United States. Senators had included the legislation in a defense spending bill passed last month, but a House version of the defense bill did not include the same provision. Lawmakers say senators decided to leave the provision out of the final compromise bill, which is expected to come to a vote in the House and Senate in the coming days. Lawmakers from both parties have been critical of President Trump over his decision to lift…

U.S. President Donald Trump on Friday dug in on his criticism of the Federal Reserve’s policy on raising interest rates, saying it takes away from the United States’ “big competitive edge,” and lamented the strength of the U.S. dollar. Trump, in posts on Twitter, also accused the European Union and China of manipulating their currencies. “China, the European Union and others have been manipulating their currencies and interest rates lower, while the U.S. is raising rates while the dollars gets stronger and stronger with each passing day - taking away our big competitive edge,” Trump wrote. “As usual, not a level playing field.” After his posts, the U.S. dollar extended losses against the European Union’s euro, the Chinese yuan and Japanese yen. Representatives for the Fed could not immediately be…

President Donald Trump has indicated that he's willing to hit every product imported from China with tariffs, sending U.S. markets sliding before the opening bell Friday.   In a taped interview with the business channel CNBC, Trump said "I'm willing to go to 500," referring roughly to the $505.5 billion in goods imported last year from China.   The administration to date has slapped tariffs on $34 billion of Chinese goods in a trade dispute over what it calls the nation's predatory practices.   Dow futures which had already been pointing modestly lower slid sharply after the comments were aired by CNBC early Friday, indicating triple-digit losses when the market opens.   The yuan dipped to a 12-month low of 6.8 to the dollar, off by 7.6 percent since mid-February.…

Chinese policymakers are pumping more liquidity into the financial system and channeling credit to small- and medium-sized firms, and Beijing looks set to further loosen monetary conditions to mitigate threats to growth from a heated Sino-U.S. trade war. The world’s second-biggest economy has started to lose momentum this year as a government campaign to reduce a dangerous build-up of debt has lifted borrowing costs, hitting factory output, business investment and the property sector. As an intensifying trade conflict raises risks to exporters and overall growth, many economists expect the central bank to further reduce reserve requirements in the coming months, on top of the three reductions made so far this year. Benchmark rate unchanged However, few see a cut in the benchmark policy rate this year, as authorities walk a…

The Trump administration wants to scrap automatic federal protection for threatened plants and animals, a move that would anger environmentalists but please industry. A proposal unveiled Thursday would no longer grant threatened species the same instant protection given to endangered species. It would also limit what can be declared a critical habitat for such plants and animals. Officials with the Interior Department and Fish and Wildlife Service said Thursday that they wanted to streamline regulations. They said current rules under the Endangered Species Act were inconsistent and confusing. Deputy Interior Secretary David Bernhardt said the new rules would still be very protective of endangered animals. "At the same time, we hope that they ameliorate some of the unnecessary burden, conflict and uncertainty that is within our current regulatory structure," he told…

The financial leaders of the world's 20 biggest economies meet in Buenos Aires this weekend for the first time since long-simmering trade tensions burst into the open when China and the United States put tariffs on $34 billion of each other's goods. The United States will seek to persuade Japan and the European Union to join it in taking a more aggressive stance against Chinese trade practices at the G-20 meeting of finance ministers and central bank presidents, according to a senior U.S. Treasury Department official who spoke on condition on anonymity. But those efforts will be complicated by frustration over U.S. steel and aluminum import tariffs on the EU and Canada. Both responded with retaliatory tariffs in an escalating trade conflict that has shaken markets and threatens global growth. "U.S. trading partners are unlikely to be in a conciliatory mood," said Eswar…

Time and effort have gone down the drain for Steve Gould, who is scrambling to find new customers for his gin, whiskey and other spirits since the United States has taken a tough stance on trade issues. Before the European Union retaliated against new U.S. tariffs with taxes of its own, Gould expected revenue from the EU at his Golden Moon Distillery in Colorado to reach $250,000 or $350,000 this year. Now he's concerned that European exports will total just $25,000. Golden Moon already saw an effect when then-candidate Donald Trump made trade an issue during the 2016 campaign. Gould lost one of his Mexican importers and an investor, as overseas demand for small-distiller spirits was growing. "We've lost years of work and hundreds of thousands of dollars in building…

Grinding poverty and climate change are pushing communities in West Africa's Sahel region into the arms of extremist groups like Boko Haram, but providing people with clean energy could help slow that trend, said a top international official. Rachel Kyte, CEO of Sustainable Energy for All, set up by the United Nations, learned on a trip to Niger this month how women and girls are being recruited by Islamist militants who offer them work, food and other essentials. Kyte, who serves as the U.N. secretary-general's special representative on energy access, said Boko Haram "is moving into the provision of basic social services." At the same time, in impoverished Niger, recurring and more intense drought "is absolutely punishing," she said.  The Islamist group is based in northeast Nigeria but active in other West African states. Kyte said villagers need better ways to…

Vivendi's Universal Music Group (UMG) will launch a new division in Nigeria as part of efforts by the world's largest music label to expand into Africa's most populous nation and the wider region. The music entertainment group said on Tuesday its new strategic division, Universal Music Nigeria, will operate from Nigeria's commercial capital Lagos. Nigerian music, much like its Nollywood film industry, is popular across much of Africa. Nigerian music artists have popularized the Afrobeat musical genre and gone on to sign record deals, sell out concerts and work with international artists to increase the global reach of African music. Music revenue in Nigeria - mostly derived from sales of mobile phone ringtones - grew 9 percent in 2016, year-on-year, to reach $39 million and is expected to rise to…