Connect with us

Africa

Instability hits global markets as Trump tariffs kick in

Published

on


Asian and European shares slid on Wednesday after U.S. President Donald Trump’s latest tariff hikes took effect and he threatened to add still more.

Uncertainty is running high about what Trump will do next in his trade war. In a speech Tuesday night he said plans tariffs on pharmaceuticals so that more medications would be made in the U.S.

Trump’s latest tariffs include a massive 104% levy on U.S. imports of Chinese products. However, Chinese markets reversed early losses and gained ground on Wednesday.

Driving the gains were massive share buybacks by big state-run investment funds and other state companies that often are instructed to support the market in times of crisis. Investors also are expecting the government to step up spending and other measures to help counter the impact of the tariffs, which will hit small manufacturers and traders that create the most jobs the hardest.

A slew of losses in Asia

Beijing issued a policy paper reiterating China’s right to protect its businesses with unspecified countermeasures, while it emphasized it preferred to resolve trade issues through dialogue.

The paper also argued that taking into account trade in services and U.S. companies’ operations in China, economic exchange between the two countries is “roughly in balance.”

Hong Kong’s Hang Seng rose 0.7%, while the Shanghai Composite index closed 1.3% higher.

Taiwan led the losses in Asia, as its Taiex plunged 5.8%. Big tech industries were among the biggest decliners.

South Korea’s Kospi lost 1.7% to 2,293.70, and the government said it would provide help for its beleaguered automakers.

Slim hopes

In early European trading, Germany’s DAX lost 2.4% to 19,796.83. In Paris, the CAC 40 declined 2.4% to 6,930.62. Britain’s FTSE 100 gave up 2.2% to 7,735.72.

Analysts say the markets will have more swings up and down given uncertainty over how long Trump will keep the stiff tariffs on imports, which will raise prices for U.S. shoppers and slow the economy. If they persist, economists and investors expect them to cause a recession. If Trump lowers them through negotiations relatively quickly, the worst-case scenario might be avoided.

Trump’s trade war is an attack on the globalization that’s shaped the world’s economy and helped bring down prices for products on store shelves but also caused manufacturing jobs to leave for other countries. Trump has said he wants to narrow trade deficits, which measure how much more the United States imports from other countries than it sends to them as exports.



Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Africa

Gabon launches electoral process for September 27 local and legislative elections

Published

on


The electoral process for Gabon’s local and legislative elections is officially underway.

The timetable for the September 27 vote has been announced and members of the national election commission have been sworn in by the Constitutional Court.

The revision of electoral rolls across the country begins on July 14 and continues until August 12. This will ensure new voters are added and deceased or ineligible voters removed from the rolls. It will also register any changes of voting centre and update personal data.

People aged 18 and over with a Personal Identification Number (PIN) are automatically registered and need only choose their polling center.

Local electoral commissions will be set up by July 26 and deployed across the country and abroad.

Nominations for the legislative and local elections are open from July 27 to August 7.

Fifth Republic

The Ministry of the Interior and national election commission reaffirmed their commitment to ensuring “credible, transparent and peaceful” elections, and called on citizens to play an active part in building the Fifth Republic.

Last week, two years after seizing power in a coup, President Brice Oligui Nguema unveiled a new political party, the Democratic Union of Builders, or UDB. Oligui secured nearly 95 percent of the vote in April’s presidential election.

The launch of the UDB appears to signal Oligui’s intent to transition from military leader to long-term political figure. While he initially presented himself as a reformer leading a transitional government, the creation of a political party gives structure to his leadership and a platform for future governance.



Source link

Continue Reading

Africa

Forty years and counting: CAR once again postpones local elections

Published

on


Scheduled to take place for the first time in almost forty years, local and municipal elections in the Central African Republic have been once again postponed. 

Initially planned for the end of August, officials say the vote will now be held in December, in conjunction with the legislative and presidential elections. 

President Touadéra, who has been in office since 2016, launched a biometric voter registration exercise last year to update the electoral roll.

Authorities say the postponement is due to a delay in mobilizing funds as well as technical and organizational hiccups. 

Members of the opposition BRDC are calling for an overhaul of the electoral authority and a dialogue with President Touadéra.

CAR has been battling conflict since 2013 when predominantly Muslim rebels seized power and forced the then-president from office. The United Nations has said the elections represent a ”crucial opportunity” to strengthen democratic governance, promote reconciliation and consolidate stability.

The landlocked country is one of the poorest in the world, despite having significant natural resources, including uranium, oil, gold and diamonds. 



Source link

Continue Reading

Africa

France and New Caledonia reach a deal granting territory more autonomy but no independence

Published

on


After 10 days of negotiations, including a final overnight marathon, France has reached an agreement with New Caledonia. The deal grants the South Pacific territory more autonomy — but stops short of the independence sought by many indigenous Kanaks. 

President Macron hailed the deal as historic but it still needs final approval in New Caledonia. If passed, it would create a state of Caledonia within the French Republic incscribed in the French constitution and a Caledonian nationality alongside French nationality.  

The talks stemmed from deadly rioting last year prompted by proposed changes to electoral rules that pro-independence groups said would marginalize Indigenous voters.

The territory has held three referenda on the question of independence, with voters each time opting to remain with France.

A special congress will be held to finalize next steps. Media reports say they could include more sovereignty for New Caledonia over international affairs, security and justice. 

The accord could also eventually allow New Caledonians to change the territory’s name, flag and hymn.

Negotiators stressed the importance of rehabilitating and diversifying New Caledonia’s indebted economy, which depends heavily on nickel mining, and making it less reliant on the French mainland.

France colonized the Pacific archipelago in the 1850s, and it became an overseas territory after World War II, with French citizenship granted to all Kanaks in 1957.



Source link

Continue Reading

Trending