Asian shares mostly down after South Korea makes tariff deal, US stocks fall
In Seoul, the Kospi edged down 0.6% to 3,235.83 after South Korea reached a 15% tariff deal with the US, with no levies on American goods like cars, trucks and farm products. The deal also includes South Korea's purchase of $100 billion US energy imports and $350 billion worth of investments in the U.S. Hong Kong's Hang Seng index fell 1.1% to 24,814.59, while the Shanghai Composite Index slid 0.8% to 3,586.13.
Australia's S&P ASX 200 shed 0.2% to 8,741.90. India's BSE Sensex fell 0.4% to 81,169.49. Taiwan's TAIEX rose 0.3% to 23,542.52 Rabo Bank, citing the U.S. trade deals with other countries, including Bangladesh, said in a commentary that "it appears to be only a matter of time before India agrees to terms to ensure that it retains favorable access to the US market and all of those other markets that (US President Donald) Trump has demonstrated he has the power to direct through economic coercion.'
Rabo added that the terms of a US-India trade deal would almost certainly include Indian purchases of US arms and energy products and preferential access to U.S. agricultural goods. "A potential loser in all of this is Australia. With the US sending more wheat to Indonesia and Bangladesh and more LNG to Japan and South Korea, Australian exports stand to be displaced from their traditional markets,' it added.
Trump on Wednesday announced a 25% tariff on imports coming from India, along with an additional tax because of India's purchases of Russian oil, beginning Friday. That's when stiff tariffs Trump has proposed for many other countries are also scheduled to kick in, unless they reach trade deals that lower the rates.
But the US president said the two countries were still in negotiations. On Wall Street on Wednesday the S&P 500 edged down by 0.1%, coming off its first loss after setting all-time highs for six successive days. The Dow Jones Industrial Average dropped 171 points, or 0.4%, and the Nasdaq composite rose 0.1%. Stocks felt pressure from rising Treasury yields in the bond market after the Federal Reserve voted to hold its main interest rate steady. The move may upset Trump, who has been lobbying for lower interest rates, but it was widely expected on Wall Street.
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Kuwait Times
5 hours ago
- Kuwait Times
Trump tariffs don't spare his fans in EU
BUDAPEST: Hungarian Prime Minister Viktor Orban promised that the return of his 'dear friend' Donald Trump as US president would usher in a new 'golden age'. But trade unionist Zoltan Laszlo says Hungary's auto industry has seen the opposite as the United States announced new tariffs, with order cancellations and workflow disruptions marking employees' day-to-day experience. With tariff rates rising from 2.5 percent before Trump's return to around 25 percent and finally to 15 percent, the 'American tariff slalom' has caused nothing but chaos in the car industry, said Laszlo, who represents workers at Mexican automotive parts manufacturer Nemak's Hungarian plant. In recent years, Hungary and neighboring Slovakia have become European manufacturing hubs for global car brands seeking lower labor costs, including British Jaguar Land Rover, German Mercedes and Japanese Suzuki. But due to the export-oriented nature of their automotive sectors, catering in part to the US market, they are among those EU nations hardest-hit by the latest tariffs slated to kick in on August 7. Despite hailing Trump's comeback and visiting him twice at his Mar-a-Lago luxury estate last year, Orban — his closest EU ally — was not spared the pain. Neither were more favorable conditions extended to Slovakian Prime Minister Robert Fico, whose country is the world's largest automobile manufacturer per capita. According to analyst Matej Hornak, the incoming tariffs won't bode well. He warns of a drop in exports amounting to 'several hundred million euros' and the loss of '10,000-12,000' jobs in the sector. After the announcement of the EU-US trade deal, Orban was quick to apportion blame to EU Commission president Ursula von der Leyen, saying Trump 'ate' her 'for breakfast'. But in April, the mayor of the Hungarian city of Gyor, whose strong economic growth is closely linked to its car manufacturing plants, had already warned of possible cutbacks and layoffs. For the city, which is home to various global brands and more than a dozen different parts and component suppliers including Nemak, the fresh tariffs are a disaster. As one of the biggest employers in Hungary, German carmaker Volkswagen alone provides jobs for more than 12,000 people. Its main engine factory in Gyor produces some Audi-branded vehicles directly for the US market. The Hungarian government has said that it is still assessing the impact of the tariff rates, vowing that upcoming business deals with Washington could mitigate the negative effects of Trump's 'America first' policy. But more headwinds are ahead for Hungary and Slovakia, said Brussels-based geopolitical analyst Botond Feledy. 'When it comes to European dealmaking, Trump now prioritises more geopolitically influential figures—the main option for smaller nations such as Slovakia and Hungary is to join forces with others,' he told AFP. But the 'aggressive posturing' in the same vein of Trump's protectionist policies both countries adopted in recent months have isolated them among fellow EU countries, making compromises difficult, the expert added. Moreover, the stakes are high for Orban, whose 15-year rule has recently been challenged by former government insider-turned-rival Peter Magyar ahead of elections scheduled for next spring. 'Dissatisfaction with the standard of living has made voters more critical, which is also reflected in the popularity ratings of the governing parties,' said economist Zoltan Pogatsa, adding that 'Hungary has been in a state of near stagnation for many years now'. This year's economic 'flying start' touted by Orban did not materialize, with the government further lowering the country's growth goal from the initial 3.4 to one percent. 'So far, Trump's second presidency has only impacted the Hungarian economy through his tariff policy, which has been negative,' Pogatsa added. At the Nemak plant, a recent warning strike has led to management promising to sort out the unpredictable work schedules caused by the tariff changes, which were 'unhealthy and physically unbearable' and made 'family and private life become incompatible with work', said Laszlo. – AFP
Arab Times
7 hours ago
- Arab Times
The compassionate captain of Kuwait Airways
I did not expect to return to writing about Kuwait Airways so soon, but a message from a reader of my recent article in the Arab Times, along with an interview I came across with a former Kuwait Airways captain, compelled me to revisit the topic. The reader, a European, wrote, 'I read your article about Kuwait Airways in The Arab Times and appreciated its insight. I especially enjoyed the story about the dead horse. Your words resonated with me as both a regular flyer and someone working in aviation. 'I wanted to share this thought - We must learn from the experiences of other Gulf Cooperation Council countries. 'Their companies generate high profits and operate with clear efficiency. I work closely with them, and all have professional CEOs and management teams with extensive airline industry experience, drawn from a range of international backgrounds. 'The truth is that few industries are as global and professionally demanding as aviation, so airline management must be global in both mindset and expertise. 'I understand this may conflict with the goals of 'Kuwaitization,' but if the government wants to stop subsidizing a loss-making national carrier, while other Gulf airlines thrive, earn billions in profits, build strong reputations, and operate from world-class airports, then the only viable solution is to place the airline in the hands of professionals who adhere strictly to sound business rules.' I replied by saying I understood his perspective, and that I had previously advised more than one Kuwait Airways CEO to seek government approval to amend the regulations that prohibit hiring highly qualified foreign experts, even temporarily, until a capable Kuwaiti CEO can be trained to take over and manage the company efficiently before the foreign expert's contract ends. This is exactly what Kuwaiti banks did, and I personally witnessed both the foreign expertise phase and the rise of national talent. In the early days, most bank leadership teams were American, British, or French. But over time, and through proper training, dozens of outstanding Kuwaiti professionals emerged, including figures like Yousef Al-Awadhi, Yousef Al-Hussaini, Abdullah Al-Sumait, Adel Al-Majed, Imad Al-Saqr, Walid Mandani, and others. I apologize to those I may have unintentionally omitted. --- On another note, I recently listened to a podcast interview with a former Kuwait Airways captain. When asked by the host about the reasons behind the national carrier's decline in performance compared to other Gulf airlines, he responded without hesitation by explaining that he had served as a pilot at Kuwait Airways for 42 years, and described the company as one filled with compassion, warmth, and generosity. He emphasized that Kuwait Airways is not a profit-driven entity, but rather a service-oriented one. As an example, he pointed to the airline's humanitarian role during emergencies and natural disasters in various countries, where Kuwaiti citizens were stranded. In such cases, Kuwait Airways stepped in to rescue and return them home free of charge. He concluded by saying that Kuwait Airways is the best airline in the Gulf and proudly noted that it maintains a spotless safety record, unlike some of its regional counterparts. The captain either forgot or chose to overlook that his remarks amounted to an implicit criticism of the reputation and safety records of other Gulf airlines. By doing so, he suggested they lacked the 'love, compassion, and generosity' that Kuwait Airways reportedly shows, including failing to rescue their stranded citizens abroad. Moreover, his comparison of Kuwait Airways' safety record with those of other Gulf carriers was flawed, as if implying negligence on their part. This comparison is unfair and unrealistic. Naturally, there will be differences in performance and safety between an airline operating 20 or 30 aircraft and those managing fleets of hundreds. Kuwait Airways is our national carrier, and we all hope it achieves the highest standards. To do so, it needs to be privatized or at least granted its board of directors greater autonomy to hire international experts to manage the airline, without unnecessary interference by the relevant minister.
Arab Times
16 hours ago
- Arab Times
US State Dept may require visa applicants to post bond of up to $15,000 to enter US
WASHINGTON, Aug 5, (AP): The US State Department is proposing requiring applicants for business and tourist visas to post a bond of up to $15,000 to enter the United States, a move that may make the process unaffordable for many. In a notice to be published in the Federal Register on Tuesday, the department said it would start a 12-month pilot program under which people from countries deemed to have high overstay rates and deficient internal document security controls could be required to post bonds of $5,000, $10,000 or $15,000 when they apply for a visa. The proposal comes as the Trump administration is tightening requirements for visa applicants. Last week, the State Department announced that many visa renewal applicants would have to submit to an additional in-person interview, something that was not required in the past. In addition, the department is proposing that applicants for the Visa Diversity Lottery program have valid passports from their country of citizenship. A preview of the bond notice, which was posted on the Federal Register website on Monday, said the pilot program would take effect within 15 days of its formal publication and is necessary to ensure that the US government is not financially liable if a visitor does not comply with the terms of his or her visa. "Aliens applying for visas as temporary visitors for business or pleasure and who are nationals of countries identified by the department as having high visa overstay rates, where screening and vetting information is deemed deficient, or offering citizenship by investment, if the alien obtained citizenship with no residency requirement, may be subject to the pilot program,' the notice said. The countries affected will be listed once the program takes effect, it said. The bond could be waived depending on an applicant's individual circumstances. The bond would not apply to citizens of countries enrolled in the Visa Waiver Program, which enables travel for business or tourism for up to 90 days. The majority of the 42 countries enrolled in the program are in Europe, with others in Asia, the Middle East and elsewhere. Visa bonds have been proposed in the past but have not been implemented. The State Department has traditionally discouraged the requirement because of the cumbersome process of posting and discharging a bond and because of a possible misperceptions by the public. However, the department said that previous view "is not supported by any recent examples or evidence, as visa bonds have not generally been required in any recent period.'
