Stock markets fall as traders assess latest tariffs volley - Markets & Companies
European and Asian markets mostly fell Wednesday after US President Donald Trump broadened his tariff threats stoking wider trade war fears.
Trump warned the previous day that he would impose tariffs "in the neighbourhood of 25 percent" on auto imports and a similar amount or higher on semiconductors and pharmaceuticals.
"Understandably this has helped drive European carmakers lower, with the likes of Mercedes-Benz, BMW and VW losing ground," said Joshua Mahony, chief market analyst at Scope Markets.
European markets all dropped, with London hit by higher-than-expected inflation figures.
Tariff threats also knocked auto firms and semiconductor makers in Tokyo, dragging the index into the red.
Trump's comments widened his trade war, having earlier pledged 25 percent levies on steel and aluminium.
While some observers have said that the threats are likely being used as a negotiating tool, it has nonetheless revived worries about the impact on the global economy.
"It remains to be seen which of the floated tariffs will be implemented but there are now many tariff spinning plates in play," said Deutsche Bank's Jim Reid.
China, a key target in Trump's tariffs policy -- told the World Trade Organization on Tuesday that the US risked triggering inflation, market distortions and even a global recession.
The tariff threats added to market uncertainty since Europe and Kyiv were excluded from the first high-level talks between the US and Russia since the start of the war in Ukraine.
While all three main indexes on Wall Street rose on Tuesday, with the S&P 500 closing at a record high, Asia struggled to maintain momentum.
Hong Kong was dragged lower by tech firms after Chinese internet giant Baidu's fourth-quarter earnings saw a fall in revenue and a warning of near-term pressures.
The sector has helped the Hang Seng Index surge around 15 percent since the turn of the year, spurred by the emergence of Chinese startup DeepSeek's new chatbot that has upended the AI universe.
President Xi Jinping's meeting with China's top business leaders this week, including Alibaba co-founder Jack Ma, added to the optimism amid hopes of a fresh boost for the private sector.
The Shanghai stock market rose while Taipei was weighed by a sell-off in chip giant TSMC.
In other company news, Swiss mining and commodity trading giant Glencore dropped around seven percent on London's FTSE 100 after it reported a net loss for 2024.
Shares in Dutch medical device maker Philips dropped around 11 percent on the Amsterdam stock exchange, after it posted worse-than-expected losses.
Meanwhile Britain's BAE Systems profits, boosted by government defence spending, did not meet analysts' highest expectations, with shares dipping around one percent.
Key figures around 1100 GMT
London - FTSE 100: DOWN 0.4 percent at 8,733.61
Paris - CAC 40: DOWN 0.8 percent at 8,140.18
Frankfurt - DAX: DOWN 0.7 percent at 22,678.58
Tokyo - Nikkei 225: DOWN 0.3 percent at 39,164.61 (close)
Hong Kong - Hang Seng Index: DOWN 0.1 percent at 22,944.24 (close)
Shanghai - Composite: UP 0.8 percent at 3,351.54 (close)
New York - Dow: FLAT at 44,556.34 (close)
Euro/dollar: DOWN at $1.0432 from $1.0445 on Tuesday
Pound/dollar: DOWN at $1.2590 from $1.2608
Dollar/yen: DOWN at 151.80 from 152.09 yen
Euro/pound: UP at 82.87 pence from 82.85 pence
West Texas Intermediate: UP 0.6 percent at $72.29 per barrel
Brent North Sea Crude: UP 0.6 percent at $76.28 per barrel
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Al-Ahram Weekly
2 hours ago
- Al-Ahram Weekly
‘MAKE THE DEAL IN GAZA': Trump calls for ceasefire in Israel's war on Gaza - War on Gaza
US President Donald Trump on Sunday urged negotiators to 'MAKE THE DEAL IN GAZA' as talks resumed in Israel's 20-month war, which has killed over 56,000 Palestinians and pushed the territory to the brink of famine. 'MAKE THE DEAL IN GAZA. GET THE HOSTAGES BACK!!!' Trump posted on social media early Sunday. Two days earlier, he raised expectations for a breakthrough, saying a deal could be reached 'within the next week' — even as Israeli strikes killed at least 60 Palestinians across Gaza that same day. An eight-week ceasefire was brokered shortly after Trump took office earlier this year, but Israel resumed its attacks in March after attempting to impose new terms that excluded any path toward a permanent end to the war. More than 400 Palestinians were killed in the first days of renewed bombardment. Since then, Israel's genocidal assault has escalated, drawing increasing international condemnation for its widespread destruction and repeated strikes on civilian infrastructure and aid distribution sites. Many Palestinians remain sceptical of renewed truce efforts, pointing to Israel's repeated violations of past ceasefires and continued attacks on areas it has declared safe. 'Since the beginning of the war, they have been promising us something like this: release the hostages and we will stop the war,' said Abdel Hadi al-Hour. 'They did not stop the war.' Talks stall over Israel's refusal to end the war Ceasefire negotiations have repeatedly collapsed over Israel's refusal to agree to a permanent end to the war. Hamas official Mahmoud Merdawi said Israeli prime minister Benjamin Netanyahu was obstructing progress, pushing for a limited deal that would see only 10 captives released. Around 50 remain in Gaza, with fewer than half believed to be alive. Hamas has said it is prepared to release all remaining captives in exchange for a full Israeli military withdrawal and a formal ceasefire. Israel has rejected the proposal, demanding Hamas surrender, disarm and go into exile — terms the group has refused. Civilian toll rises under siege and bombardment Gaza's health ministry said on Sunday that Israeli forces had killed another 88 people in the past 24 hours, bringing the Palestinian death toll to at least 56,500. More than half of those killed are women and children, according to the ministry. Nearly the entire population of Gaza has been displaced, many repeatedly. Vast areas have been flattened, and those who remain face severe shortages of food, water and medicine. Israel has also imposed a full blockade, halting all food and humanitarian supplies for over two months. The siege, condemned by UN agencies and humanitarian groups, has pushed the population towards famine conditions. Under international pressure, Israel later approved a limited and tightly controlled aid mechanism via the Gaza Humanitarian Foundation (GHF), backed by both Israel and the US. The system relies on private US contractors and coordination with Israeli forces. Aid agencies say it has become a tool of control rather than relief, with repeated attacks on civilians gathering at distribution points. According to a new UN assessment, fewer than half of Gaza's hospitals remain even partially functional. More than 4,000 children are in urgent need of medical evacuation, most of whom have been unable to leave. 'We are exhausted, we are tired. We hope to God that the war will end,' said Mahmoud Wadi, a resident of Gaza City. Israel issues new evacuation orders in northern Gaza The Israeli military on Sunday issued new evacuation orders for large areas of northern Gaza, including parts of Gaza City and the densely populated Jabaliya refugee camp. Military spokesperson Col Avichay Adraee announced the orders online, stating that operations would expand westward into central Gaza City. Civilians were told to move to al-Muwasi in the south — an area lacking shelter, services and safety, and which has been struck repeatedly by Israeli forces. Israel says the relocations are necessary to enable military operations. But human rights groups have condemned the repeated evacuation orders as a form of forced displacement and ethnic cleansing, warning they may constitute war crimes under international law. *This story was edited by Ahram Online. Follow us on: Facebook Instagram Whatsapp Short link:
Daily News Egypt
3 hours ago
- Daily News Egypt
Zahrān Mamdani's win in New York Primary sparks debate on Democratic Party's future
The victory of American politician Zahrān Mamdani in the Democratic primary for Mayor of New York has ignited a wide-ranging debate in the United States, with its aftershocks felt across the country. US President Donald Trump, on his platform Truth Social, described Mamdani as an 'obsessed communist,' while the New York Young Republican Club called on the federal government to strip him of his citizenship, which he obtained in 2018, and deport him from the country. Even within the Democratic Party, reactions to Mamdani's win have been divided. While some members expressed their support, others voiced concern, echoing Trump in calling him an 'extremist.' Mamdani's victory comes at a time when the Democratic Party is facing sharp internal divisions, the resignations of prominent union figures, and a struggle to cope with mounting political and economic pressures. His rise coincides with the growing activity of youth and progressive movements, such as 'Leaders We Deserve,' which are playing a pivotal role in supporting progressive candidates at local and national levels. This trend is causing increasing anxiety within the Democratic establishment, which fears losing its grip on the political landscape. A Shift in the Democratic Party Mamdani, 33, has emerged as a new voice demanding a bold socialist platform focused on the cost-of-living and rent crisis, the establishment of municipally-owned grocery stores, the provision of free buses, and increased taxes on the wealthy in New York City. His win was a surprise to political circles, not only because he ran an eight-month campaign against a traditional party icon from an established political dynasty—Andrew Cuomo, the city's former governor and son of former governor Mario Cuomo—but also because the results defied polling predictions. 'This is not an individual victory but a sign of a broader shift in the Democratic Party, especially in major cities,' Robert Patillo, a human rights lawyer and former Democratic congressional candidate, told Asharq. He noted, 'As the Republican Party moves to the far right under Trump's leadership, the Democratic Party is also being compelled to adopt bold leftist positions that satisfy a base that now votes out of necessity, not hesitation.' Patillo questioned the methodology of opinion polls, saying they 'are still stuck in the methods and methodologies of the 80s and 90s, and have repeatedly failed to predict recent election results, from Trump's victory to Kamala Harris's loss.' At the same time, Patillo noted that 'many of Mamdani's supporters, especially young white university students and those from diverse backgrounds, preferred not to state their leanings in the polls for fear of being marginalised or questioned, but they expressed themselves forcefully at the ballot box.' He added: 'These voters are no longer satisfied with minor policy adjustments; they are demanding real leaps and a sharp change in the political system's structure, having grown weary of a bland moderation presented under centrist slogans to adapt to Trump's policies.' 'A Bold Message and a Successful Campaign' Democratic opinions on Mamdani's platform were split. Democratic lawyer Allen Awour endorsed it, telling Asharq that his victory represents 'an alarm bell' within the party. He noted that Mamdani 'led a campaign expressing radical change, with a youthful personality, a bold progressive message, and a platform that challenges the prevailing discourse on housing and taxes, proposing policies that serve the working class and not just traditional interests.' In contrast, Matt Bennett, Vice President of the centre-left group Third Way, criticised Mamdani's platform. He told Asharq that Mamdani 'did not win because he adopted a far-left platform, but because he exploited an opportune political moment and ran a smart campaign.' He warned, 'If the Democratic Party focuses on Mamdani's relatable style without adopting his controversial leftist policies, it might benefit. But generalising this leftist approach could harm the party in moderate areas outside of New York.' Bennett continued that the significance of Mamdani's primary win 'lies not in his political platform, but in the way he ran his campaign.' 'Mamdani is a charismatic young man who focused on the economic issues that matter to voters and succeeded in effectively delivering his message,' he added, viewing this approach as 'a strength.' However, he considers the platform's substance, which embraces democratic socialist positions, to be 'problematic for the party in the long run.' Bennett believes the electoral context played a 'decisive role' in this victory, explaining that the election took place in New York City, one of the most liberal cities in the United States, and during June, when high temperatures reduced voter turnout. He also attributed Mamdani's win, in part, to his opponent Andrew Cuomo, saying he 'was burdened by a political legacy heavy with scandals, which made him a weak candidate against a figure presenting himself as the pure and bold alternative.' Cuomo resigned from his post in 2021 over allegations of 'sexual harassment.' Democratic Criticisms After 93% of precincts had reported, showing Mamdani with 44% of the vote, Cuomo conceded defeat. 'He earned it. He won,' Cuomo said. Mamdani was born and raised in Kampala, the capital of Uganda. At the age of seven, he moved to New York City with his father, Mahmood Mamdani, a political science professor at Columbia University, and his mother, filmmaker Mira Nair. A young Muslim of Indian descent, Mamdani primarily expressed his political views through long posts on Facebook. At Bowdoin College, where he earned a bachelor's degree in Africana Studies, Mamdani co-founded the first chapter of Students for Justice in Palestine. He has recently faced criticism for his views on Israel and for describing the events in Gaza as 'genocide.' He has been accused of 'antisemitism,' a charge he rejects. Mamdani worked as a housing counselor specialising in foreclosure prevention, helping low-income, non-white residents in Queens resist eviction and stay in their homes, which explains his mayoral platform's focus on freezing rents. In 2020, Mamdani won the Democratic primary and became a member of the New York State Assembly for the 36th district in Astoria, becoming the third Muslim to hold this position. During his time in the State Assembly, Mamdani went on a hunger strike with taxi drivers to alleviate about $450m of their debt and successfully launched a free bus pilot project. Upon winning the mayoral nomination, he promised to eliminate bus fares in the city. Mamdani has walked back some of his old positions, such as his call to defund the police. In the final primary debate, he said he does not plan to do so but affirmed his intention to review the tasks assigned to them. He has faced sharp criticism from his own Democratic camp in New York for his socialist platform and for saying he would 'impose a 2% income tax on New Yorkers earning more than a million dollars annually.' Laura Gillen, a congresswoman representing part of Long Island, described Mamdani as 'too extreme.' In a post on X, she said his entire campaign was 'built on unachievable promises and tax increases, which is the last thing New York needs.' Meanwhile, Congressman Tom Suozzi of Long Island, who endorsed Cuomo in the primary, said after Mamdani's win that he 'still has serious concerns about Mamdani.' Bennett, who served as a deputy assistant to the president for legislative affairs in the Bill Clinton White House, said Mamdani's weakness lies in his 'very bad leftist ideas.' Bennett pointed to Mamdani's previous statements about the police, whom he described as 'racist' and said 'should have their funding reduced.' He noted that this 'is concerning, and if he actually becomes mayor, the police reaction could be negative, and crime rates could rise, which could lead to real problems.' Bennett added that 'Mamdani's public spending plan, which relies on raising taxes on the wealthy and corporations, needs approval from officials in Albany,' where major state-level decisions are made. 'If these leaders reject his plan, it could put Mamdani in a real bind as mayor, because many of his campaign promises will become difficult to implement.' The predicament Bennett described has been noted by American newspapers, which compared Mamdani's attempt to become the youngest mayor at 33 to 'Boy Mayor' John Purroy Mitchel, who was elected mayor of New York in 1914 at the age of 34. Mitchel was a reformist Republican with ambitions similar to Mamdani's, focusing on fighting corruption, especially within the police and city administration. But after three years, he was crushed by John Francis Hylan, who was backed by the Democratic political machine Tammany Hall. Bennett did not rule out Mamdani meeting the same fate as Mitchel, saying that 'voters, city council members, and others will not support his extremist ideas.' However, Democratic lawyer Awour believes Mamdani is charting his own course with a platform focused on marginalised groups. His task now is to deliver on his promises. 'You can have the most ambitious agenda in the world, but you have to have the political ability to push it forward, so this will be the first real test of his political abilities to get it passed,' Awour said. The Language of the Internet Mamdani's ascent was by no means guaranteed, but with the help of tens of thousands of unpaid volunteers, he succeeded in mobilising young voters to achieve a surprise victory in the most populous city in the United States. Mamdani is fluent in the language of the internet and is constantly active on social media. He even met his wife, Syrian animator Rama Duwaji, on a dating app. His campaign relied on many online influencers who connected his campaign to New York's youth culture. Mamdani enlisted well-known figures from the worlds of music, fashion, and podcasting, which made his campaign more attractive and influential among young voters. Patillo said his appearances at cultural events and on social media shows helped him communicate his ideas in a simple and entertaining way, especially regarding the rent freeze and free transportation. On the 'Subway Takes' podcast, hosted by Kareem Rahma in the New York subway, Mamdani said he relied on donations from ordinary people and received more than $8m in individual contributions from 20,000 people—the same amount his rival Andrew Cuomo received from billionaire Michael Bloomberg. In addition to individual support, Mamdani also received backing from David Hogg, the recently departed deputy of the Democratic National Committee, who left his post after a growing dispute with Democrats over his announcement to allocate $20m of party funds to support young congressional candidates over older ones. His group, 'Leaders We Deserve,' supported the New York State Assemblyman. The New York Times reported that the group also donated $300,000 to a political action committee of the Working Families Party, which ranked Mamdani first on its list of endorsed candidates. Patillo said Mamdani's weak point will be his ability to raise funds to run against 'the millionaire and billionaire class, and the donor class.' He added that Cuomo, who has announced he will run as an independent in the November general election, 'because of his name, his organisational advantages, and his money, could still win even in this race.' But Patillo believes Mamdani's primary win sends a signal that the Democratic Party may finally be opening its doors to young leaders. 'Many prominent names in the Democratic leadership are leaving or becoming frail and unable to continue in their positions. Therefore, because they have left a power vacuum, you are seeing young voices being given the opportunity to rise,' he said. Patillo added that 'the next generation of leaders appear to be social media savvy, understand messaging, and have the energy to push their agenda.' Bennett agrees with Patillo that the Democratic Party needs young leadership. 'A young person winning against an older man always suggests that voters are looking for youth and vitality,' he said. Bennett added that Mamdani's victory suggests the party should look for candidates like him who can connect with new media in the way he used it so effectively, but he considered that 'it's not about his ideology, only his age and style.' The Centrist Wing's Position Weeks after momentum built around Zahrān Mamdani's campaign, Senator Bernie Sanders and progressive Congresswoman Alexandria Ocasio-Cortez endorsed him, but the party's centrist wing attacked him sharply. A month before the end of the New York City mayoral primary, candidate Jessica Ramos, a state senator from Queens, urged voters to cast their ballots for her rival, Andrew Cuomo. She justified this by saying she 'did not have a real chance of winning due to her poor performance in the polls and difficulty in fundraising,' and saw Cuomo as 'the most capable of confronting Trump's policies.' Ramos's position was a shock to many, especially since she had previously called for Cuomo's resignation over the harassment allegations. Ramos herself, despite being under 40, mocked Mamdani during a Democratic primary debate, saying: 'I regret not running for mayor of New York in 2021… I thought I needed more experience, but it turns out you just need to make good videos.' Ramos's opinion was similar to the reactions of the more pragmatic wing of the party, which considered Mamdani's win a 'serious setback' for the party. Lawrence Summers, former Treasury Secretary under President Barack Obama, warned of the impact of this victory on 'the future of the party and the country.' Patillo considered this a recurring pattern within the party of containing or sidelining rising progressive politicians, and Mamdani could face the same fate if he cannot prove his worth. 'The Democratic Party suffers from an internal division,' Patillo said. 'It brings together young progressive groups like African Americans, immigrants, and minority rights supporters, with more traditional groups from middle agricultural areas like farmers.' He explained that this diversity leads to constant tension over the party's direction, and progressive voices are often marginalised despite their rise. 'An Opportunity for Republicans' At the same time, Republicans see Mamdani's win in New York as an opportunity to strengthen their political presence in competitive districts by using his progressive platform to portray the Democratic Party as 'extremist.' This is what frightens Bennett most. 'There is a real danger that Republicans will use Mamdani's views and the views of socialists as a weapon against other Democrats,' he explained. Bennett confirmed that they have already started doing so. 'We are now seeing fundraising messages and statements coming from Republicans trying to link Mamdani to Democrats in other parts of New York state and across the country,' he said, adding, 'I think this poses a real problem.' Trump weighed in and fiercely attacked Mamdani for his primary win, calling him an 'obsessed communist' and saying his 'look is terrible, his voice is grating, and he's not smart enough,' viewing his rise as a 'defining moment in the country's history.' The New York 'Young Republican Club' also called on the federal government to strip Mamdani of his citizenship and deport him. Awour described this call as 'undemocratic and inhumane,' saying, 'Talk of revoking citizenship due to political differences is inappropriate' and 'would extend to everyone in New York City, including many of these young Republicans who may not be American by birth, or whose parents may be immigrants.' As for Patillo, he considered that the hope for changing the thinking of the Democratic Party, which is primarily concerned with winning, lies in Mamdani's ability to achieve tangible results such as improving the standard of living, reducing crime, and providing real services to the people. 'Then he will become a model to be emulated, and he may push the party to reconsider its positions on progressive politicians,' he said. 'Success in America's political arena always tends to be imitated, so the best way for Mamdani to gain the party's trust and continued support is to succeed in his mission as mayor and win over the people on the ground.'
Al-Ahram Weekly
4 hours ago
- Al-Ahram Weekly
Israeli court postpones Netanyahu appearance in graft trial - War on Gaza
An Israeli court on Sunday postponed Prime Minister Benjamin Netanyahu's testimony in his corruption trial after he requested a delay, as US President Donald Trump called for the case to be thrown out. "Following the explanations given... we partially accept the request and cancel at this stage Mr Netanyahu's hearings scheduled" for this week, the Jerusalem district court said in its ruling, published online by Netanyahu's Likud party. Netanyahu's lawyers had asked the court to excuse him from testifying over the next two weeks so he could focus on security matters following a ceasefire with Iran and amid Israel's ongoing war on Gaza, which has killed more than 56,000 Palestinians. They had submitted Netanyahu's schedule to the court to demonstrate "the national need for the prime minister to devote all his time and energy to the political, national and security issues at hand". The court initially rejected the lawyers' request but said in its ruling on Sunday that it had changed its judgement after hearing arguments from the prime minister, the head of military intelligence and the chief of the Mossad spy agency. Trump backing Trump on Saturday said in a post on his Truth Social platform that the United States was "not going to stand" for the continued prosecution, prompting Netanyahu to thank him in a message on X. Earlier in the week, the US president had described the case against the Israeli premier as a "witch hunt", saying the trial "should be CANCELLED, IMMEDIATELY, or a Pardon given to a Great Hero," calling Netanyahu Israel's 'Great War Time Prime Minister'. His comments stand in stark contrast to the International Criminal Court (ICC), which has issued a warrant for Netanyahu's arrest over war crimes and crimes against humanity committed during Israel's war on Gaza. Israeli opposition leader Yair Lapid reacted by saying that Trump "should not interfere in a judicial trial in an independent country". Netanyahu has denied any wrongdoing in the corruption affair. In one of the cases, he and his wife, Sara, are accused of accepting more than $260,000 worth of luxury goods such as cigars, jewellery and champagne from billionaires in exchange for political favours. In two others, Netanyahu is accused of attempting to negotiate more favourable coverage from two Israeli media outlets. The prime minister has requested multiple postponements to the trial since it began in May 2020. Rival urges Netanyahu to quit During his current term, which started in late 2022, Netanyahu's government has proposed far-reaching judicial reforms that critics say were designed to weaken the courts and prompted massive protests that were only curtailed by the onset of the Israeli war on Gaza. In an interview with Israel's Channel 12 that aired on Saturday, former prime minister Naftali Bennett accused Netanyahu of deepening divisions in Israeli society, and said that he "must go". Netanyahu "has been in power for 20 years... that's too much, it's not healthy," Bennett said. The former right-wing premier managed to form a coalition in 2021 that ousted Netanyahu from the premiership after 12 consecutive years, but it collapsed before the end of the following year. Bennett is rumoured to be planning a comeback, with public opinion polls suggesting he may have enough support to oust Netanyahu again. He declined to comment on that prospect in Saturday's interview. *This story was edited by Ahram Online. Follow us on: Facebook Instagram Whatsapp Short link:
