rate

Ex-Fed chief says Trump bid to oust US governor Cook 'dangerous'

  • On Wednesday, Yellen warned that the Fed's interest rate decisions would lose credibility if markets believed the central bank was guided by political orders.
  • US President Donald Trump's move to oust Federal Reserve Governor Lisa Cook marks a direct attempt to politicize the central bank and is "profoundly dangerous," former Fed chief Janet Yellen warned Wednesday.
  • On Wednesday, Yellen warned that the Fed's interest rate decisions would lose credibility if markets believed the central bank was guided by political orders.
US President Donald Trump's move to oust Federal Reserve Governor Lisa Cook marks a direct attempt to politicize the central bank and is "profoundly dangerous," former Fed chief Janet Yellen warned Wednesday.
Her opinion piece in the Financial Times came days after Trump said he was removing Cook from her position over allegations of mortgage fraud.
But Yellen argued that accusations alone do not constitute the kinds of "cause" that allow for the firing of a Fed official.
"For Trump to invoke cause here is a fiction; it is a pretext to justify an autocratic power grab," charged Yellen, who also served as Treasury secretary under former president Joe Biden.
"It represents a direct attempt to politicize the Fed, intimidate its leadership and bend monetary policy to the president's will," she said.
Trump is sending a "chilling message" to other officials sitting on the bank's rate-setting Federal Open Market Committee that they could be targeted next if they disagreed with the president's views, she said.
Among Cook's alleged false statements were claims of two primary residences, one in Michigan and another in Georgia.
But the Fed governor has not been charged with a crime and the alleged incidents occurred before she was in her current position.
Cook, the first Black woman to serve on the powerful Fed Board of Governors, has rejected Trump's unprecedented bid to remove her, saying he had no legal authority to do so.
Trump's targeting of Cook marked a dramatic escalation of his efforts to influence the central bank, after he repeatedly lashed out at Fed Chair Jerome Powell for not slashing interest rates sooner.
On Wednesday, Yellen warned that the Fed's interest rate decisions would lose credibility if markets believed the central bank was guided by political orders.
"Inflation expectations could become unmoored. The dollar's standing as the world's reserve currency would be imperilled," she said.
"This strategy will not even succeed in lowering long-term interest rates," she said.
"Quite the contrary; long-term interest rates will probably rise due to higher inflation expectations."
bys/dl

defense

Defence giant Rheinmetall opens mega-plant as Europe rearms

BY WITH LOUIS VAN BOXEL-WOOLF IN FRANKFURT

  • - 'Turning point' - Praising Pistorius for his efforts, Rheinmetall chief Armin Papperger said that politicians taking defence increasingly seriously had helped ensure the plant could be built in as little as 14 months when it would ordinarily take two or three years.
  • German weapons-maker Rheinmetall opened Europe's largest munitions plant on Wednesday, a move hailed as boosting Western defences by NATO chief Mark Rutte.
  • - 'Turning point' - Praising Pistorius for his efforts, Rheinmetall chief Armin Papperger said that politicians taking defence increasingly seriously had helped ensure the plant could be built in as little as 14 months when it would ordinarily take two or three years.
German weapons-maker Rheinmetall opened Europe's largest munitions plant on Wednesday, a move hailed as boosting Western defences by NATO chief Mark Rutte.
Taking up 30,000 square metres -- the size of five football pitches -- the factory in Unterluess in northern Germany will be able to produce 350,000 artillery shells a year by 2027.
"This is absolutely crucial for our own security and also to keep supporting Ukraine in its fight today and to deter any aggression in the future," Rutte said at an opening ceremony.
"We are being challenged" by China and Russia, he said, but added that Europe and the United States together are on course to "turn the tide on defence production".
Europe has moved to ramp up weapons production and military readiness following Russia's full-scale invasion of Ukraine in 2022, accelerating efforts as US President Donald Trump has urged Europe to take more responsibility for its own defence.
Artillery shell production across the continent is now six times greater than it was two years ago, Rutte said, and Germany earlier this year loosened strict debt rules so that it can borrow billions to pay for military equipment.
Speaking alongside Rutte at the ceremony, German Defence Minister Boris Pistorius said that Europe could not confront security challenges if it did not develop its industrial base to convert spending promises into concrete capabilities.
"The miliary and armed forces only work as well as the country behind them," he said. "We need to be successful because we are faced with a threat."
Washington was watching closely to see if Europe could deliver on its promises to increase spending, Pistorius added.
"NATO has to become more European so that it can stay transatlantic," he said. "This is the demand before which we stand as Europeans."

'Turning point'

Praising Pistorius for his efforts, Rheinmetall chief Armin Papperger said that politicians taking defence increasingly seriously had helped ensure the plant could be built in as little as 14 months when it would ordinarily take two or three years.
"There has been a turning point here in Germany," he said.
The plant will help fill a record-breaking munitions order worth 8.5 billion euros ($9.3 billion at the time) placed by the German government in July 2024.
German Chancellor Friedrich Merz has vowed to build Europe's "strongest conventional army". 
Defence spending is projected to reach to reach 162 billion euros in 2029, more than triple the defence budget compared to its level before the war in Ukraine.
Rheinmetall's Unterluess site already makes guns and munitions for the Leopard 2 tank, which has been used by the Ukrainian army.
Papperger also signed a 550-million-euro deal on stage with Romania's economy minister for a plant he said would probably be completed within the next 18 months.
Separately, Germany's cabinet signed off a draft law on Wednesday that aims to boost armed forces recruitment and includes provisions for compulsory military service if there are not enough volunteers.
About 182,000 soldiers currently serve in the armed forces. Pistorius has said that should rise to 260,000.
vbw-jpl/sr/giv

Global Edition

Stock markets waver ahead of Nvidia earnings

  • Investors are now awaiting US economic growth data due Thursday and a key inflation gauge Friday for clues on how far interest rates might fall in the coming months.
  • Stock markets fluctuated Wednesday as investors braced for a key earnings update from AI giant Nvidia, whose robust growth has largely driven strong gains for tech stocks in recent months.
  • Investors are now awaiting US economic growth data due Thursday and a key inflation gauge Friday for clues on how far interest rates might fall in the coming months.
Stock markets fluctuated Wednesday as investors braced for a key earnings update from AI giant Nvidia, whose robust growth has largely driven strong gains for tech stocks in recent months.
The tech-heavy Nasdaq index and the broader S&P 500 edged slightly higher after soft openings, ahead of the second-quarter results from Nvidia due out after Wall Street closes.
"The company has outgrown the tech sector and become the market's lodestar," said Stephen Innes of SPI Asset Management.
"Analysts expect revenue to soar 53 percent to $46 billion, but this is about more than revenue beats," he added. "The crowd wants reassurance that the AI revolution isn't just smoke and mirrors."
In Europe, the Paris stock market bucked the downward trend by rebounding from Tuesday's tumble, caused by fears that France's minority government could be toppled after Prime Minister Francois Bayrou proposed a confidence vote over his proposed budget cuts.
France's borrowing costs have soared since the vote was called Monday, as the government wrestles with how to find around 44 billion euros ($51 billion) in savings.
"Opposition parties have signalled they will not support Bayrou's proposals, raising doubts about the government's ability to pass its 2026 budget," said David Morrison, an analyst at Trade Nation.
In Asia, Shanghai's market slid despite a surge by Cambricon -- a leading Chinese chipmaker and a Nvidia competitor -- on the heels of a record first-half profit posted Tuesday.
Also heavily impacting markets this week has been a highly unusual move by Trump to fire a Federal Reserve governor, Lisa Cook.
He cited allegations of false statements on her mortgage applications, but Cook said Trump had no authority or legal cause to fire her and her lawyer announced a planned legal challenge on Tuesday.
The step adds to fears about the independence of the central bank, fuelled by Trump's repeated public demands to Fed chairman Jerome Powell to lower interest rates.
Powell suggested last Friday that more cuts to US interest rates were on the horizon, causing stock markets to surge.
Investors are now awaiting US economic growth data due Thursday and a key inflation gauge Friday for clues on how far interest rates might fall in the coming months.

Key figures at around 1540 GMT

New York - Dow: UP 0.3 percent at 45,529.62 points
New York - S&P 500: UP 0.2 percent at 6,477.08
New York - Nasdaq: UP 0.1 percent at 21,572.99
Paris - CAC 40: UP 0.4 percent at 7,743.93 (close)
London - FTSE 100: DOWN 0.1 percent at 9,255.50 (close)
Frankfurt - DAX: DOWN 0.4 percent at 24,046.21 (close)
Tokyo - Nikkei 225: UP 0.3 percent at 42,520.27 (close)
Hong Kong - Hang Seng Index: DOWN 1.3 percent at 25,201.76 (close)
Shanghai - Composite: DOWN 1.8 percent at 3,800.35 (close)
Euro/dollar: DOWN at $1.1608 from $1.1637 on Tuesday
Pound/dollar: DOWN at $1.3466 from $1.3475
Dollar/yen: UP at 147.74 yen from 147.45 yen
Euro/pound: DOWN at 86.20 pence from 86.36 pence
West Texas Intermediate: UP 0.6 percent at $63.61 per barrel
Brent North Sea Crude: UP 0.4 percent at $66.95 per barrel
pfc-bcp-js/gv

Gamescom

'Resident Evil' makers marvel at 'miracle' longevity

BY KILIAN FICHOU

  • More than 170 million copies of "Resident Evil" games have been sold over the franchise's lifetime, with Capcom alternating between original instalments and remakes since 2017.
  • When zombie-blasting survival game "Resident Evil" launched on the very first PlayStation console in 1996, Japanese publishers Capcom never thought the series would reach tens of millions of people or endure for three decades.
  • More than 170 million copies of "Resident Evil" games have been sold over the franchise's lifetime, with Capcom alternating between original instalments and remakes since 2017.
When zombie-blasting survival game "Resident Evil" launched on the very first PlayStation console in 1996, Japanese publishers Capcom never thought the series would reach tens of millions of people or endure for three decades.
The franchise has become Capcom's biggest, spawning a string of sequels as well as film and TV spinoffs and competing over the years with the more psychological "Silent Hill" to give horror fans goosebumps.
"I think it's a miracle that we've made it this far" since the first episode, producer Masato Kumazawa told AFP through an interpreter at the vast Gamescom trade fair in Cologne, Germany, last week.
"Requiem" -- the ninth "Resident Evil" game -- will land on February 27, although the opening minutes were available for fright-hungry gamers in Cologne.
Protagonist Grace is seen being chased by a terrifying blind creature through the halls of a manor house.
Where previous instalments have swept players off to Louisiana and eastern Europe, the new game follows an investigation by a young American woman into her mother's death.
It's a return to a classic formula and the fictional Raccoon City setting of the first few games in the near-30-year-old series from publisher Capcom.
"It was time after those two (previous) games to go back to a very well-known setting," the game's director Koshi Nakanishi said.
More than 170 million copies of "Resident Evil" games have been sold over the franchise's lifetime, with Capcom alternating between original instalments and remakes since 2017.
That makes the series by far the Japanese publisher's most valuable, ahead of well-loved properties like "Street Fighter" and "Monster Hunter".

'Universal horror'

"Surprise and freshness is what keeps the game selling even after 30 years," Kumazawa said.
Each instalment plays with locations, characters and gameplay styles -- from high-octane third-person action to first-person survival adventures like "Requiem" in which players constantly feel hunted.
Kumazawa added that while it's made in Japan, the series is "culturally designed to be universal horror for all fans" worldwide.
While the popularity of "Resident Evil" has inspired film and TV adaptations, it is not the only Japanese-made saga in the survival horror market.
Three years younger than "Resident Evil", the rival game "Silent Hill" has had a less linear journey.
With it Stephen King-influenced atmosphere, the first two instalments scored moderate success before declining in the 2000s, prompting a 10-year hiatus.
But all along "Silent Hill" producer Motoi Okamoto of publisher Konami was sniffing around the indie horror scene for the right developer.
He ultimately landed on Polish studio Bloober Team -- makers of games like "The Medium" and "Blair Witch" -- to remake "Silent Hill 2".
With more than two million copies sold in the months after its October 2024 launch, that release reignited passion for the series and set up the upcoming "Silent Hill f".

One 'Silent Hill' per year?

Set to appear on September 25, "f" tells the grisly story of a 1960s-era Japanese high school student, in an original scenario cooked up by Taiwanese studio NeoBards.
The team moved on from the American setting of previous iterations as "that became very tiring on players, it became a very samey experience," Okamoto said, also speaking through an interpreter.
"To make Silent Hill stand out, we needed to partner up with these teams" who bring "a varied background of experience and... individuality," he added.
Bloober Team are already working on a remake of the original "Silent Hill", while US studio Annapurna Interactive are co-developing another title -- feeding Okamoto's ambition to release one game per year in future.
"Resident Evil" producer Kumazawa believes that the "two major Japanese survival horror franchises have stimulated each other" over the almost 30 years they've co-existed.
But Okamoto sees two games offering "very different experiences".
His "Silent Hill" is "a psychological horror game, where you must face up to your own traumas," he outlines.
"Resident Evil" director Nakanishi, by contrast, highlights that in each game in the series "you always beat your enemy in the end."
"It's a very satisfying liberation from the tension that builds up throughout the game".
kf/tgb/lth

trade

German factory outfitters warn of 'crisis' from US tariffs

  • "The harm caused by them, along with the prospect of still more in the months to come, are sending key machinery sectors hurtling toward the precipice of an existential crisis," wrote the group's president Bertram Kawlath.
  • Germany's factory and equipment makers' federation warned Wednesday the sector is facing an "existential crisis" after the United States broadened the reach of its metals tariffs. 
  • "The harm caused by them, along with the prospect of still more in the months to come, are sending key machinery sectors hurtling toward the precipice of an existential crisis," wrote the group's president Bertram Kawlath.
Germany's factory and equipment makers' federation warned Wednesday the sector is facing an "existential crisis" after the United States broadened the reach of its metals tariffs. 
In a letter to European Commission President Ursula von der Leyen, the VDMA trade group said the expanded levies "have now sent a fresh chill of uncertainty rippling through European industry". 
"The harm caused by them, along with the prospect of still more in the months to come, are sending key machinery sectors hurtling toward the precipice of an existential crisis," wrote the group's president Bertram Kawlath.
The European Union and US President Donald Trump struck a framework deal in late July under which most EU exports to the United States face a 15-percent across-the-board tariff rate. 
They released more details last week but negotiations are continuing, and levies in some areas remain unclear. 
The VDMA, which represents some 3,600 companies in Europe's biggest economy, said the US move to expand steel and aluminium tariffs took the levies far beyond the 15-percent level for some products.
Trump earlier this year imposed a 50-percent tariff on both metals. Last week the Commerce Department broadened their reach to cover hundreds more products containing steel and aluminium derivatives. 
As a result, about 30 percent of American machinery imports from the EU now face a 50-percent tariff on the metal content of the product, according to the VDMA.
The list of affected goods is also set to be expanded every four months, it warned.
In addition to the tariff cost, the extra duties bring "painful new bureaucratic burdens" such as extra paperwork, the group said.
Kawlath urged von der Leyen to step up efforts to lessen the impact of the extra levies, "and to ensure that machinery and equipment are excluded from future sectoral tariffs".
The German Chamber of Commerce and Industry released a survey Wednesday, in which a majority of businesses polled said they believe that the EU-US deal places too great a burden on European economies. 
Most companies believed the bloc should take a tough stance towards the Trump administration in further talks -- even if it impacts their own business. 
Trump's tariff onslaught is an extra headache for German manufacturers which have already been facing a long downturn.
Almost a quarter of a million jobs have been lost in German industry since 2019, according to a study by consultancy EY published Tuesday.
sr/vbw/lth

tariff

US tariffs on Indian goods double to 50% over Russian oil purchases

BY BEIYI SEOW WITH ANUJ SRIVAS IN MUMBAI

  • While Trump has slapped fresh duties on allies and competitors alike since returning to the presidency in January, this 50-percent level is among the highest that US trading partners face.
  • US tariffs of 50 percent took effect Wednesday on many Indian products, doubling an existing duty as President Donald Trump sought to punish New Delhi for buying Russian oil.
  • While Trump has slapped fresh duties on allies and competitors alike since returning to the presidency in January, this 50-percent level is among the highest that US trading partners face.
US tariffs of 50 percent took effect Wednesday on many Indian products, doubling an existing duty as President Donald Trump sought to punish New Delhi for buying Russian oil.
India has criticized the levies as "unfair, unjustified and unreasonable," with its export body calling on Wednesday for government intervention to assuage fears of heavy job cuts.
Trump has raised pressure on India over the energy transactions, a key source of revenue for Moscow's war in Ukraine, as part of a campaign to end the conflict.
The latest salvo strains US-India ties, giving New Delhi fresh incentive to improve relations with Beijing.
But US Treasury Secretary Scott Bessent told Fox Business on Wednesday that Trump had good ties with Indian Prime Minister Narendra Modi.
"I think at the end of the day, we will come together," he said.
While Trump has slapped fresh duties on allies and competitors alike since returning to the presidency in January, this 50-percent level is among the highest that US trading partners face.
Crucially, however, exemptions remain for sectors that could be hit with separate levies -- such as pharmaceuticals, computer chips and smartphones.
Industries that have already been singled out, such as steel, aluminum and automobiles, are similarly spared these countrywide duties.
The United States was India's top export destination in 2024, with shipments worth $87.3 billion.
But analysts have cautioned that a 50-percent duty is akin to a trade embargo and is likely to harm smaller firms.
Exporters of textiles, seafood and jewelry were already reporting cancelled US orders and losses to rivals such as Bangladesh and Vietnam, raising fears of heavy job cuts.
Ajay Sahai, director general of the Federation of Indian Export Organisations, called for "liquidity support from the government."
"We want to ensure that even if business stops, we are able to keep workers on the payroll", he told AFP, saying they were "still optimistic" for  trade negotiations.

'Eroded trust'

The world's fifth-largest economy is looking to cushion the blow, with Modi promising to lower the tax burden on citizens during an annual speech to mark India's independence.
Modi earlier vowed self-reliance, pledging to defend his country's interests.
The foreign ministry previously said India had begun importing oil from Russia as traditional supplies were diverted to Europe over Russia's invasion of Ukraine.
It noted that Washington actively encouraged such imports at the time to strengthen stability in the global energy market.
Russia accounted for nearly 36 percent of India's total crude oil imports in 2024. Buying Russian oil saved India billions of dollars on import costs, keeping domestic fuel prices relatively stable.
But the Trump administration held firm on its tariff plans in the lead-up to Wednesday's deadline.
Trump's trade adviser Peter Navarro told reporters last week that "India doesn't appear to want to recognize its role in the bloodshed."
"It's cozying up to Xi Jinping," Navarro added, referring to the Chinese president.
Wendy Cutler, from the Asia Society Policy Institute, said India had moved from being "a promising candidate for an early trade deal to a nation facing among the highest tariffs."
Cutler, a former US trade official, told AFP that the "high tariffs have quickly eroded trust between the two countries, which could take years to rebuild."
Trump has used tariffs as a tool for addressing everything from what Washington deems as unfair trade practices to trade imbalances.
US trade deficits were a key justification behind his higher duties on dozens of economies taking effect in early August -- hitting partners from the European Union to Indonesia.
But the 79-year-old Republican has also taken aim at specific countries such as Brazil over the trial of its former president Jair Bolsonaro, who is accused of plotting a coup.
US tariffs on many Brazilian goods surged to 50 percent this month, but with broad exemptions.
asv-bys/ksb

toys

Lego posts record sales, sees market share growing further: CEO

  • In the first six months of the year, the global toy market expanded by 6.9 percent, with Lego's share growing "at twice that rate", Christiansen added.
  • Danish toymaker Lego, the world's biggest, posted record sales for the first half of the year and continues to gain market share despite global volatility, its chief executive told AFP. "Over the last several years, we have been able to outgrow the market and take market share pretty consistently," Niels Christiansen said in an interview.
  • In the first six months of the year, the global toy market expanded by 6.9 percent, with Lego's share growing "at twice that rate", Christiansen added.
Danish toymaker Lego, the world's biggest, posted record sales for the first half of the year and continues to gain market share despite global volatility, its chief executive told AFP.
"Over the last several years, we have been able to outgrow the market and take market share pretty consistently," Niels Christiansen said in an interview.
"I don't think we are at the end of it."
In the first six months of the year, the global toy market expanded by 6.9 percent, with Lego's share growing "at twice that rate", Christiansen added.
In the January-June period, the maker of the colourful plastic bricks saw its net profit jump 10 percent from a year earlier to nine billion kroner ($1.39 billion).
Sales rose by 12 percent to a record 34.6 billion kroner, its sixth straight increase for a half-year period.
"There's been challenges and there's been volatility in the world, but I think our operating model and the dedication throughout has been really good," Christiansen said.
Unlike US competitors Hasbro and Mattel, Lego had no complaints about the impact of US tariffs, which President Donald Trump raised to a minimum of 10 percent on imported products as of April 1.
The Danish group, which is building a new factory in Virginia, saw double-digit growth in the United States, where its products currently come mainly from its Mexico factory.
"It's not necessarily volatility or tariffs that make a difference between players on the market. I think for our purpose, we have seen a very broad-based growth," Christiansen said.
He attributed the company's robust health to its extensive portfolio -- it added 314 new Lego sets in the first half -- as well as the brand's strong reputation and the opening of 24 new stores, bringing its total to 1,079 worldwide.
Lego soared during the Covid pandemic to become the world's biggest toymaker, according to market analysis firm Statista, ahead of Japan's Bandai Namco and Mattel and Hasbro.
Franchises like Lego Star Wars and Harry Potter, along with partnerships -- notably with the video game Fortnite -- have cemented the Danish toymaker's brand among consumers.
The unlisted family-owned company dates to 1949 and is run by the heirs of founder Ole Kirk Christiansen.
cbw/ef/po/js

SpaceX

SpaceX answers critics with successful Starship test flight

BY RONALDO SCHEMIDT WITH ISSAM AHMED IN WASHINGTON

  • Still, even with a successful tenth flight, major challenges loom.
  • SpaceX's Starship megarocket roared into the skies Tuesday on its tenth test flight, turning in a strong performance after a series of fiery failures had begun to cast doubt on its future.
  • Still, even with a successful tenth flight, major challenges loom.
SpaceX's Starship megarocket roared into the skies Tuesday on its tenth test flight, turning in a strong performance after a series of fiery failures had begun to cast doubt on its future.
Towering 403 feet (123 meters), Starship is the most powerful launch vehicle ever built and key to founder Elon Musk's vision of carrying humanity to Mars, as well as NASA's plans to return astronauts to the Moon.
The stainless steel colossus blasted off from the company's Starbase in southern Texas at 6:30 pm local time (2330 GMT), greeted by loud cheers from engineering teams, as seen in a live webcast.
A few minutes into launch, the first-stage booster known as Super Heavy splashed down into the Gulf of Mexico, triggering a sonic boom on its way. Unlike other recent tests, SpaceX opted not to attempt a catch with the giant "chop stick" arms of the launch tower, instead testing how it would perform if an engine cut out. 
Attention then shifted to the upper stage -- also known individually as Starship and intended to one day carry crew and cargo -- to demonstrate its capabilities as it soared into space. 
For the first time, SpaceX was able to successfully deploy eight dummy Starlink internet satellites, with onboard cameras beaming back live views of a robotic mechanism pushing each out one by one.
It was not all smooth sailing. Some heat tiles fell away and a small section of a flap burned off during the vessel's fiery descent, as it was enveloped in pink and purple plasma.
But SpaceX communications manager Dan Huot said much of this was expected as the vehicle was intentionally flown on a punishing trajectory with some tiles removed. 
"We're kind of being mean to this starship a little bit," he said on the webcast. "We're really trying to put it through the paces and kind of poke on what some of its weak points are."
"Great work by the SpaceX team!!" Musk wrote on X. 

Critical mission

Much had been riding on the mission, after the last three flights ended with the upper stage exploding: twice over the Caribbean and once after reaching space. In June, an upper stage blew up during a ground test.
Despite recent setbacks, Starship was not seen as being at a crisis point. SpaceX's "fail fast, learn fast" philosophy has already given it a commanding lead in launches with its Falcon rockets, while Dragon capsules ferry astronauts to the ISS and Starlink has become a geopolitical asset.
Still, even with a successful tenth flight, major challenges loom. Musk has identified developing a fully reusable orbital heat shield as the toughest task, noting it took nine months to refurnish the Space Shuttle's heat shield between flights.
"What we're trying to achieve here with Starship is to have a heat shield that can be flown immediately," he said on a webcast Monday.
Another hurdle is proving Starship can be refueled in orbit with super-cooled propellant -- an essential but untested step for the vehicle to carry out deep-space missions.
Time is running short to ready a modified version as NASA's lunar lander for 2027, and for Musk to make good on his vow to send an uncrewed Starship to Mars next year.
ia/jgc

business

US restaurant chain Cracker Barrel cracks, revives old logo

  • The announcement that Cracker Barrel was going back to its old logo -- the image of an old man sitting on a chair and leaning on a barrel -- came just hours after Trump weighed in on the controversy.
  • US restaurant chain Cracker Barrel announced Tuesday it was reverting to its old logo after its rebrand sparked a furious, culture war-fueled backlash, including criticism from President Donald Trump.
  • The announcement that Cracker Barrel was going back to its old logo -- the image of an old man sitting on a chair and leaning on a barrel -- came just hours after Trump weighed in on the controversy.
US restaurant chain Cracker Barrel announced Tuesday it was reverting to its old logo after its rebrand sparked a furious, culture war-fueled backlash, including criticism from President Donald Trump.
The folksy, homestyle US chain saw tens of millions of dollars wiped off its share price since it unveiled a new look last week that right-wingers criticized as "woke."
The announcement that Cracker Barrel was going back to its old logo -- the image of an old man sitting on a chair and leaning on a barrel -- came just hours after Trump weighed in on the controversy.
"Cracker Barrel should go back to the old logo, admit a mistake based on customer response (the ultimate Poll), and manage the company better than ever before," Trump said on Truth Social.
The new, simplified -- and now abandoned -- logo featured just the text of the brand name in a rounded-off yellow hexagon.
In a statement on X, the company thanked its patrons for "sharing your voices and love for Cracker Barrel."
"We said we would listen, and we have. Our new logo is going away and our 'Old Timer' will remain," Cracker Barrel said.
"As a proud American institution, our 70,000 hardworking employees look forward to welcoming you to our table soon," it added.
Trump, in a post on Truth Social, welcomed the return to the old logo.
"Congratulations 'Cracker Barrel' on changing your logo back to what it was. All of your fans very much appreciate it. Good luck into the future. Make lots of money and, most importantly, make your customers happy again!," he said.
The logo furor comes as Trump's White House leads a crusade against diversity and anything it brands "woke" -- a derogatory shorthand for leftist social justice movements -- in both the US government and corporate America.
The chain has around 660 US branches. Trump won in 74 percent of counties with a Cracker Barrel in 2024, according to elections analyst Dave Wasserman.
dk-cl/sla

Global Edition

French political turmoil sends European stocks down, Wall Street edges up

  • Shares in French banks sank, with BNP Paribas down around four percent while rival Societe Generale shed more than six percent -- both major lenders that hold French government debt.
  • European stock markets and shares in French banks fell Tuesday as investors fretted over fresh political turmoil in France.
  • Shares in French banks sank, with BNP Paribas down around four percent while rival Societe Generale shed more than six percent -- both major lenders that hold French government debt.
European stock markets and shares in French banks fell Tuesday as investors fretted over fresh political turmoil in France.
The Paris stock market tumbled and French borrowing costs rose over fears that France's minority government could be toppled, after Prime Minister Francois Bayrou proposed a confidence vote to break an impasse over his proposed budget cuts.
"Delaying or ditching (fiscal) reforms will make the debt situation more untenable and weigh on the economy," said Neil Wilson, UK investor strategist at Saxo Markets. 
Shares in French banks sank, with BNP Paribas down around four percent while rival Societe Generale shed more than six percent -- both major lenders that hold French government debt.
"The question now is whether this develops into a broader drag on European assets or remains a distinctly French affair," said Fawad Razaqzada, market analyst at StoneX.
Paris, London and Frankfurt all closed lower, following losses in Asia.
Wall Street's main indexes advanced as investors tried to look past US President Donald Trump's move to oust Federal Reserve governor Lisa Cook.
The US leader cited allegations of false statements on her mortgage agreements, but Cook said Trump had no authority or legal cause to fire her, while her lawyer announced a planned legal challenge on Tuesday.
The unusual step adds to fears about the independence of the central bank, fueled by Trump's repeated public demands to Fed chairman Jerome Powell to lower interest rates.
Powell suggested on Friday more cuts to US interest rates were on the horizon.
"Investors are becoming increasingly concerned by the president's persistent interference in the business of the central bank," said David Morrison, senior market analyst at Trade Nation.
Stock markets crept up and US Treasury bond yields, closely watched as a proxy for interest rates, were little changed.
"One explanation could be that there's a strong belief that this will fail in the courts because (Cook) has not been proven guilty of anything at the moment," Steve Sosnick of Interactive Brokers said.
Markets also were not swayed by a survey released on Tuesday that showed a fall in consumer confidence and a persistent worry over Trump's tariffs -- which the president threatened to expand on Monday to countries with measures "designed to harm" US technology.
The dollar fell while gold rose as investors sought a safe place to store their gains.
Wall Street remains focused on results due Wednesday from AI chip giant Nvidia, a bellwether for the artificial intelligence sector.
Investors are also awaiting a US economic growth update on Thursday and a key inflation gauge Friday for clues on how far interest rates might fall -- or not -- in the coming months.
Oil prices slid Tuesday following recent increases as traders track a possible peace deal to end the war between Ukraine and key crude producer Russia.

Key figures at around 2015 GMT

New York - Dow: UP 0.3 percent at 45,418.07 points (close)
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pfc-ajb-jxb-bys/md

rate

Trump moves to fire Fed governor, escalating effort to control central bank

BY BEIYI SEOW

  • But Wessel warned: "History tells us that when politicians control the central bank, the inevitable consequence is higher inflation and financial instability."
  • Donald Trump's move to fire Federal Reserve Governor Lisa Cook has marked a dramatic escalation in his effort to control the US central bank -- in a step that puts the institution's independence at risk.
  • But Wessel warned: "History tells us that when politicians control the central bank, the inevitable consequence is higher inflation and financial instability."
Donald Trump's move to fire Federal Reserve Governor Lisa Cook has marked a dramatic escalation in his effort to control the US central bank -- in a step that puts the institution's independence at risk.
For months, the US leader has been calling for the bank to slash interest rates, lashing out repeatedly at Fed Chair Jerome Powell for being "too late" and calling him a "moron."
But policymakers have been holding rates steady as they monitor the effects of Trump's wide-ranging tariffs on inflation.
By ousting Cook, the president could potentially add another voice to the Fed's board to try and shift interest rates in his favored direction.
After calling for her resignation last week, Trump posted a letter on his Truth Social platform Monday evening, saying she was fired "effective immediately."
He cited allegations of false statements on her mortgage agreements, saying: "I have determined that there is sufficient cause to remove you from your position."
Trump told reporters Tuesday that Cook "seems to have had an infraction," saying "we need people that are 100 percent above board."
But Cook on Tuesday rejected Trump's unprecedented bid to remove her, saying he had no legal authority to do so.
"I will not resign," said Cook, the first Black woman to serve on the central bank's board.
"President Trump purported to fire me 'for cause' when no cause exists under the law, and he has no authority to do so," she added.
Cook's attorney Abbe Lowell added: "We will be filing a lawsuit challenging this illegal action."
A Fed spokesperson said the central bank "will abide by any court decision." The official noted that Cook was seeking a judicial decision that would confirm her ability to keep honoring responsibilities as a Fed governor.
The spokesperson stressed that long tenures and removal protections for governors are "a vital safeguard," but did not provide further details on Cook's status before the court outcome.
Among the alleged false statements was that Cook had claimed two primary residences, one in Michigan and another in Georgia.
Cook has not been charged with a crime and the alleged incidents occurred before she was in her current position.

Independence eroded?

The potential legal dispute would be the latest test of presidential powers under Trump's new term, with the 79-year-old Republican -- backed by loyalists throughout the government -- forcefully moving to exert executive authority.
But even as the Supreme Court's conservative majority recently allowed Trump to fire members of other independent government boards, it created a carveout for the Fed in its ruling.
Federal law says that Fed officials can only be removed for "cause," which could be interpreted to mean malfeasance or dereliction of duty.
Fed independence from the White House "is being eroded," said David Wessel, a senior fellow in economic studies at Brookings.
He told AFP that Trump appears to be trying to get a majority on the Fed's board, in an effort to lower interest rates.
But Wessel warned: "History tells us that when politicians control the central bank, the inevitable consequence is higher inflation and financial instability."
The Fed's credibility as an inflation-fighter will be questioned, he said, cautioning that global investors will demand a premium on US Treasury debt as a result.

Consequences

For now, Oxford Economics senior US economist Matthew Martin expects that even if Cook's removal could tip the scale in favor of lower interest rates, Fed decisions are still voted upon by 12 officials.
But a Fed that "answers to the whims of an administration" draws more investor wariness, he added.
"Despite lower short-term interest rates, long-term interest rates would rise for the US government, households, and businesses -- increasing their borrowing costs," Martin said.
The Fed has held interest rates at a range between 4.25 percent and 4.50 percent this year.
Besides Cook, Trump has recently suggested that what he called an overly costly renovation of the Fed's headquarters could be reason to oust Powell, before backing off the threat.
Meanwhile the president has picked Stephen Miran, the leader of his White House economic panel, to fill a recently vacated seat on the Fed's board.
Cook took office as a Fed governor in 2022 and was reappointed to the board in 2023.
bys/md

rate

Who is Lisa Cook, the Fed governor Trump seeks to fire?

  • Cook was one of former president Joe Biden's choices to fill open seats on the Fed board -- a seven-member body guiding US monetary policy -- and she took office as a Fed governor in May 2022.
  • Lisa Cook, the first Black woman to serve on the powerful Federal Reserve Board of Governors, has become US President Donald Trump's latest target as he ramped up pressure on the central bank.
  • Cook was one of former president Joe Biden's choices to fill open seats on the Fed board -- a seven-member body guiding US monetary policy -- and she took office as a Fed governor in May 2022.
Lisa Cook, the first Black woman to serve on the powerful Federal Reserve Board of Governors, has become US President Donald Trump's latest target as he ramped up pressure on the central bank.
Cook was one of former president Joe Biden's choices to fill open seats on the Fed board -- a seven-member body guiding US monetary policy -- and she took office as a Fed governor in May 2022.
The daughter of a Baptist chaplain and a professor of nursing, Cook bears physical scars from racism after she was attacked as a young child while involved in an effort to integrate racially segregated schools in the state of Georgia.
Prior to joining the Fed, she dedicated much of her research as an adult to previously unmeasured economic scars of discrimination on the productive capacity of the world's largest economy.
While the Fed is independent from the White House, Trump has repeatedly called on the central bank to slash interest rates this year and lower borrowing costs.
This separation from politics could come under threat as Trump intensifies pressure on the bank. On Monday evening, he published a letter on his Truth Social platform, saying that he was removing Cook from her position immediately over claims of mortgage fraud.
But Cook has rejected Trump's attempt to oust her, saying that he had no authority to do so and that she would not resign. Her lawyer said Tuesday they would file a lawsuit to challenge Trump's announcement.
Before becoming a Fed governor, Cook was a professor of economics and international relations at Michigan State University. She earned an economics degree from Oxford University and a doctorate from the University of California, Berkeley.
In 2023, she was reappointed to the Fed's board and sworn in for a term ending 2038.
Since joining the central bank, Cook has voted with Fed Chair Jerome Powell in policy decisions, like most of her colleagues. 
These included instances when the bank started cutting interest rates and when it decided to put a pause on rate reductions.
She has been described as a "dove" at times, a term referring to someone who tends to support lower rates.
But in a June speech she warned of longer-term risks surrounding inflation and said that the Fed's cautious approach to rate cuts was well positioned to respond to developments.
Cook's opponents have in the past questioned her qualifications and said she doesn't have the background for the job, criticisms that her supporters say are fueled by her race.
"I have been the target of anonymous and untrue attacks on my academic record," Cook told lawmakers in 2022, citing as qualifications her doctorate degree and specialties in international and macroeconomics.
Other board members, including Powell, are not trained economists, and Cook has researched inequality in the labor market.
She speaks five languages, including Russian, and also specializes in international development economics, having worked on topics such as Rwanda's recovery following the 1994 genocide.
Cook grew up in an area of the United States where public swimming pools were destroyed rather than allowed to be integrated, and was one of the first Black children to attend her previously segregated school.
She has studied lynchings and patents issued to Black entrepreneurs, arguing that discrimination has held back the entire society, not just the direct victims of the injustice.
hs-bys/dw

trade

EU claims 'sovereign right' to regulate tech after Trump threat

BY EMMA CHARLTON

  • "It is the sovereign right of the EU and its member states to regulate economic activities on our territory," European Commission chief spokesperson Paula Pinho told reporters in response.
  • The European Commission Tuesday asserted the "sovereign right" to regulate the activities of tech giants within the bloc and rejected claims by President Donald Trump that its rules unfairly harm US firms.
  • "It is the sovereign right of the EU and its member states to regulate economic activities on our territory," European Commission chief spokesperson Paula Pinho told reporters in response.
The European Commission Tuesday asserted the "sovereign right" to regulate the activities of tech giants within the bloc and rejected claims by President Donald Trump that its rules unfairly harm US firms.
Brussels has adopted a powerful legal arsenal aimed at reining in tech giants, particularly through the Digital Markets Act (DMA) covering competition and Digital Services Act (DSA) on content moderation.
Without explicitly naming the EU, Trump threatened on Monday to impose fresh tariffs on countries with regulations that sought to "harm" American technology, just days after both sides released details of a hard-fought transatlantic trade deal.
"It is the sovereign right of the EU and its member states to regulate economic activities on our territory," European Commission chief spokesperson Paula Pinho told reporters in response.
The EU has already slapped heavy fines on US behemoths including Meta and Apple under its new digital rules, which have faced months of pushback from Trump's administration.
EU tech spokesman Thomas Regnier said the bloc could "firmly rebut" the idea pushed by Trump that its rules targeted US companies.
"The DSA does not look at the colour of a company, at the jurisdiction of a company," Regnier said -- noting that the last three enforcement decisions under the law had been against China's AliExpress and TikTok, and Chinese-founded Temu.
Aimed at protecting consumers from disinformation and hate speech as well as counterfeit or dangerous goods, the DSA obliges platforms to swiftly remove illegal content or make it inaccessible.
Among its provisions, the law instructs platforms to suspend users who frequently share illegal content such as hate speech -- something framed as "censorship" by detractors from Meta CEO Mark Zuckerberg to the US State Department.
"The claims that the DSA is a censorship tool are completely wrong and completely unfounded," Regnier said.
"We're not asking platforms to remove content. We're asking them to enforce their own terms and conditions."

'Speculative'

Trump's latest threat comes after the United States and the EU finally released details of the trade deal struck between the US leader and European Commission President Ursula von der Leyen in July to end a months-long transatlantic standoff.
A joint statement issued last Thursday confirmed that the deal imposes a 15-percent US levy on most EU exports, including cars, pharmaceuticals, semiconductors and lumber, but negotiations are not over and some moving parts remain.
The bloc's trade chief Maros Sefcovic insisted last week that Brussels successfully kept digital issues "out of the trade negotiations" with Washington -- and that the bloc's "regulatory autonomy" was not up for debate.
The commission's Pinho stood by those comments, saying Trump's latest threat would not derail work on implementing the agreement.
"We have a clear framework on which we are working," she said, adding: "any other measures which fall out of the scope of this framework agreement at this stage are merely speculative."
ec/del/jxb

trade

The European laws curbing big tech... and irking Trump

  • But while he did not explicitly name the EU, the US leader cast new doubt on the status quo Monday by threatening fresh tariffs on countries with regulations that sought to "harm" American technology.
  • Fresh off a trade truce with Donald Trump, the EU is back in the US leader's crosshairs after he vowed to punish countries that seek to curb big tech's powers.
  • But while he did not explicitly name the EU, the US leader cast new doubt on the status quo Monday by threatening fresh tariffs on countries with regulations that sought to "harm" American technology.
Fresh off a trade truce with Donald Trump, the EU is back in the US leader's crosshairs after he vowed to punish countries that seek to curb big tech's powers.
Brussels has adopted a powerful legal arsenal aimed at reining in tech giants -- namely through its Digital Markets Act (DMA) covering competition and the Digital Services Act (DSA) on content moderation.
The EU has already slapped heavy fines on US behemoths including Meta and Apple under the new rules, which have faced strong pushback from Trump's administration.
The bloc's trade chief Maros Sefcovic insisted last week that Brussels successfully "kept these issues out of the trade negotiations" with Washington -- and that the bloc's "regulatory autonomy" was not up for debate.
But while he did not explicitly name the EU, the US leader cast new doubt on the status quo Monday by threatening fresh tariffs on countries with regulations that sought to "harm" American technology.
Here is a look at the EU rules drawing Trump's ire:

Digital Services Act

Rolled out in stages since 2023, the mammoth Digital Services Act forces online firms to aggressively police content in the 27 countries of the European Union -- or face major fines.
Aimed at protecting consumers from disinformation and hate speech as well as counterfeit or dangerous goods, it obliges platforms to swiftly remove illegal content or make it inaccessible.
Companies must inform authorities when they suspect a criminal offence that threatens people's lives or safety.
And the law instructs platforms to suspend users who frequently share illegal content such as hate speech -- a provision framed as "censorship" by detractors across the Atlantic.
Tougher rules apply to a designated list of "very large" platforms that include US giants Apple, Amazon, Facebook, Google, Instagram, Microsoft and Snapchat.
These giants must assess dangers linked to their services regarding illegal content and privacy, set up internal risk mitigation systems, and give regulators access to their data to verify compliance.
Violators can face fines or up to six percent of global turnover, and for repeated non-compliance, the EU has the power to ban offending platforms from Europe.

Digital Markets Act

Since March 2024, the world's biggest digital companies have faced strict EU rules intended to limit abuses linked to market dominance, favour the emergence of start-ups in Europe and improve options for consumers.
Brussels has so far named seven so-called gatekeepers covered by the Digital Markets Act: Google's Alphabet, Amazon, Apple, TikTok parent ByteDance, Facebook and Instagram parent Meta, Microsoft and travel giant Booking.
In a bid to limit the ability of online giants to snuff out potential rivals, the rules require all buyouts to be notified to the European Commission, the EU's competition regulator.
Gatekeepers can be fined for locking in customers to use pre-installed services, such as a web browser, mapping or weather information.
The DMA has forced Google to overhaul its search display to avoid favouring its own services -- such as Google flights or shopping.
It requires that users be able to choose what app stores to use -- without going via the dominant two players, Apple's App Store and Google Play.
And it has forced Apple to allow developers to offer alternative payment options directly to consumers -- outside of the App Store.
The DMA has also imposed interoperability between messaging apps WhatsApp and Messenger and competitors who request it.
And it imposes new obligations on the world's biggest online advertisers -- namely Google's search engine and Meta's Facebook and Instagram -- by forcing them to reveal much more to advertisers and publishers on how their ads work.
Failure to comply with the DMA can carry fines in the billions of dollars, reaching 20 percent of global turnover for repeat offenders.
bur-ec/del/fg

economy

Germany, Canada to cooperate on key raw materials

  • At a press conference in Berlin alongside Canadian Prime Minister Mark Carney, Merz said that Canadian and German ministers would sign a memorandum of understanding on raw materials. 
  • Germany and Canada will sign an agreement Tuesday on boosting cooperation in the field of critical raw materials, Chancellor Friedrich Merz said, as they seek to reduce heavy dependence on China.
  • At a press conference in Berlin alongside Canadian Prime Minister Mark Carney, Merz said that Canadian and German ministers would sign a memorandum of understanding on raw materials. 
Germany and Canada will sign an agreement Tuesday on boosting cooperation in the field of critical raw materials, Chancellor Friedrich Merz said, as they seek to reduce heavy dependence on China.
China's dominance in supplying the world with such materials has been in the spotlight since Beijing this year introduced export curbs on some key rare earths, triggering jitters among businesses globally. 
Rare earths are used in a wide variety of products from electric car batteries to wind turbines and computer hard drives. 
At a press conference in Berlin alongside Canadian Prime Minister Mark Carney, Merz said that Canadian and German ministers would sign a memorandum of understanding on raw materials. 
"This is a collaboration that I very much welcome and that we support," the German leader said. "It is a positive step towards strengthening our economies and making them more secure."
Carney said a range of factors -- from global trade volatility to the Ukraine war and coronavirus pandemic -- had exposed the vulnerabilities of critical mineral supply chains.
"Germany has been amongst the leaders in beginning that diversification away from China... Canada can play a role in accelerating that diversification for Germany and for Europe," he said.
"These issues are only going to become more important."
The leaders did not immediately reveal details of the agreement, which are expected to be released later.  
News outlet Politico reported that the agreement will have five main objectives, with a focus on technologies related to raw material processing, refining and recycling.
The effort will include materials ranging from rare earths to lithium and copper, which Canada can provide and that Germany is interested in, it said. 
The countries will also both aim to participate more in international initiatives on raw materials.
sr/fz/lth

rate

Trump moves to fire a Fed governor over mortgage fraud claims

BY BEIYI SEOW

  • A US president is generally limited in their ability to remove officials from the central bank, with a Supreme Court order recently suggesting that Fed officials can only be removed for "cause," which could be interpreted to mean malfeasance or dereliction of duty.
  • US President Donald Trump expanded pressure on the Federal Reserve on Monday by moving to fire Governor Lisa Cook "effective immediately", a step the independent central bank official said he had "no authority" to take.
  • A US president is generally limited in their ability to remove officials from the central bank, with a Supreme Court order recently suggesting that Fed officials can only be removed for "cause," which could be interpreted to mean malfeasance or dereliction of duty.
US President Donald Trump expanded pressure on the Federal Reserve on Monday by moving to fire Governor Lisa Cook "effective immediately", a step the independent central bank official said he had "no authority" to take.
Trump's decision against the first Black woman to serve on the central bank's board cited allegations of false statements on her mortgage agreements.
Referring to the Federal Reserve Act as justification, Trump wrote in a letter addressed to Cook: "I have determined that there is sufficient cause to remove you from your position."
Cook rejected the president's authority to do so, saying no cause exists.
"I will not resign," she said in a statement shared by her attorney Abbe Lowell with US media. "I will continue to carry out my duties to help the American economy."
A US president is generally limited in their ability to remove officials from the central bank, with a Supreme Court order recently suggesting that Fed officials can only be removed for "cause," which could be interpreted to mean malfeasance or dereliction of duty.
But the US leader pointed to a criminal referral dated August 15 from the Federal Housing Finance Agency's director -- a staunch ally of Trump -- to the US attorney general in his announcement that Cook would be removed from her role.
The referral, Trump said, provided "sufficient reason" to believe that Cook might have made "false statements" on one or more mortgage agreements.
One of the alleged false statements was that Cook had claimed two primary residences, one in Michigan and another in Georgia.
Earlier this month, Cook said in a statement that she had "no intention of being bullied to step down," but would take questions about her financial history seriously.
The Fed did not immediately respond to media queries on Trump's latest announcement.
In his letter Monday, Trump said: "At a minimum, the conduct at issue exhibits the sort of gross negligence in financial transactions that calls into question your competence and trustworthiness as a financial regulator."

Court challenge?

Trump's effort to remove Cook is likely to set off a legal battle, and she could be allowed to remain in her position during this period.
Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee, called Trump's move "an authoritarian power grab that blatantly violates the Federal Reserve Act."
She added in a statement that this "must be overturned in court."
Trump has been ramping up pressure on the Fed this year, repeatedly criticizing its chief Jerome Powell for not lowering interest rates sooner despite benign inflation data.
Fed policymakers have been cautious in cutting rates as they monitor the effects of Trump's tariffs on prices.
Trump has made no secret of his disdain for Powell, whom he has called a "numbskull" and "moron."
He also previously suggested that what he called an overly costly renovation of the Fed's headquarters could be a reason to oust Powell, before backing off the threat.
Trump said this month he had tipped Stephen Miran, the leader of his White House economic panel, to fill a recently vacated seat on the Federal Reserve board.
The president's targeting of Cook, who sits on the Fed's rate-setting committee too, comes after his repeated broadsides against Powell while the central bank kept the benchmark lending rate unchanged.
Since its last reduction in December, the Fed has held rates at a range between 4.25 percent and 4.50 percent this year. Powell on Friday opened the door to lowering levels at the bank's upcoming policy meeting in September.
Cook took office as a Fed governor in May 2022 and was reappointed to the board in September 2023. She was sworn in later that same month for a term ending in 2038.
She has previously served on the Council of Economic Advisers under former president Barack Obama.
The Trump administration has pursued allegations of mortgage fraud against high-profile Democrats who are seen as political adversaries of the president.
bys/rsc/mtp

tariff

Indian readies for punishing US tariffs

BY ANUJ SRIVAS

  • - The United States was India's top export destination in 2024, with shipments worth $87.3 billion.
  • Indian exports to the United States will face some of the highest tariffs in the world this week, barring a last-minute reversal from President Donald Trump. 
  • - The United States was India's top export destination in 2024, with shipments worth $87.3 billion.
Indian exports to the United States will face some of the highest tariffs in the world this week, barring a last-minute reversal from President Donald Trump. 
Trump has tied issues of war and peace to trade, threatening to slap 50 percent duties on New Delhi in retaliation for its continued purchases of Russian oil -- which Washington argues help finance Moscow's war in Ukraine.
The tariff offensive has rattled US-India ties, given New Delhi a new incentive to repair relations with Beijing, and carries major consequences for the world’s fifth-largest economy.
Trump issued a three-week deadline on August 6, which is expected to take effect on Wednesday morning in India.

How bad will it be?

The United States was India's top export destination in 2024, with shipments worth $87.3 billion.
Analysts at Nomura warn that 50 percent duties would be "akin to a trade embargo", devastating smaller firms with "lower value add and thinner margins". 
Elara Securities's Garima Kapoor said no Indian product can "stand any competitive edge" under such heavy import taxes.
Economists estimate tariffs could shave 70 to 100 basis points off India's GDP growth this fiscal year, dragging growth below six percent, the weakest pace since the pandemic.
Exporters in textiles, seafood and jewellery are already reporting cancelled US orders and losses to rivals such as Bangladesh and Vietnam, raising fears of heavy job cuts.
A small reprieve: pharmaceuticals and electronics, including iPhones assembled in India, are exempt for now.
S&P estimates exports equivalent to 1.2 percent of India's GDP will be hit, but says it will be a "one-off" shock that "will not derail" the country’s long-term growth prospects.

Will either side blink?

There's no sign yet. In fact, since the US and Russian presidents met in Alaska, Washington has ramped up criticism of India.
"India acts as a global clearinghouse for Russian oil, converting embargoed crude into high-value exports while giving Moscow the dollars it needs," White House trade adviser Peter Navarro wrote in the Financial Times earlier this month, slamming the country's refiners for "profiteering".
Indian Foreign Minister Subrahmanyam Jaishankar fired back, arguing India's purchases helped stabilise global oil markets -- and were done with Washington's tacit approval in 2022.
He argued that both the United States and Europe buy refined oil and associated products from India.
"If you have a problem buying oil from India, oil or refined products, don't buy it", he said, speaking in New Delhi. "Nobody forced you to buy it -- but Europe buys, America buys."
Jaishankar said that, until Trump's ultimatum, there had been "no conversations" asking them to stop buying Moscow's oil.
Trade trackers at Kpler say India's stance will become clearer only in September, as most August shipments were contracted before Trump's threats.
But experts say India is in a tricky situation.
India needs "considerable ingenuity and flexibility" to escape "what appears to be a no-win situation", said Nandan Unnikrishnan of New Delhi-based Observer Research Foundation.
Washington, Unnikrishnan argued, is telling India: "We think that you are the weakest link in the Russia-Ukraine geopolitics chain".

What can India do?

New Delhi has sought to bolster its economy while deepening ties with both BRICS partners and regional rivals.
Jaishankar flew to ally Moscow, producing pledges to ease barriers to bilateral trade, while Prime Minister Narendra Modi is preparing his first visit to China in seven years to repair long-frosty relations.
Domestically, Indian media reports that the government is working on a $2.8 billion package for exporters, a six-year programme aimed at easing liquidity concerns.
Modi has also proposed tax cuts on everyday goods to spur spending and cushion the economy.

What is blocking a trade deal?

Talks have stumbled over agriculture and dairy.
Trump wants greater US access, while Modi is determined to shield India's farmers, a huge voter bloc.
Indian media reports suggested that US negotiators cancelled a planned late-August trip to India. That sparked speculation that discussions had broken down.
Jaishankar, however, says talks are continuing, adding drily: "Negotiations are still going on in the sense that nobody said the negotiations are off," he said. "And people, people do talk to each other."
asv/pjm/cwl

tariff

Australia joins countries suspending post to US

  • "We are disappointed we have had to take this action, however, due to the complex and rapidly evolving situation, a temporary partial suspension has been necessary to allow us to develop and implement a workable solution for our customers." lec/djw/amj/aph
  • Australia joined on Tuesday a string of countries suspending some postal deliveries to the United States, citing a "complex and rapidly evolving situation" with US President Donald Trump's looming tariffs.
  • "We are disappointed we have had to take this action, however, due to the complex and rapidly evolving situation, a temporary partial suspension has been necessary to allow us to develop and implement a workable solution for our customers." lec/djw/amj/aph
Australia joined on Tuesday a string of countries suspending some postal deliveries to the United States, citing a "complex and rapidly evolving situation" with US President Donald Trump's looming tariffs.
Australia Post said most goods being sent to the United States and Puerto Rico would no longer be accepted "until further notice".
Gifts with a value of less than US$100, letters and documents were exempt from the suspension. 
The move follows similar steps taken by other postal services and mail carriers including in Austria, Belgium, Denmark, France, Germany, India and New Zealand.
Japan also announced that US-bound individual gifts worth more than $100 and goods for sale would no longer be accepted from Wednesday.
Taiwan said it will stop sending merchandise-type mail to the United States from Tuesday.
The Trump administration has said that as of August 29 it will abolish a tax exemption on small packages entering the United States.
Australia Post executive general manager Gary Starr said the company was focused on providing "a reliable and competitive postal service for customers". 
"We are disappointed we have had to take this action, however, due to the complex and rapidly evolving situation, a temporary partial suspension has been necessary to allow us to develop and implement a workable solution for our customers."
lec/djw/amj/aph

Israel

Norway wealth fund divests from Caterpillar over Gaza 'rights violations'

  • The fund said it had also withdrawn from five Israeli firms for financing the construction of illegal settlements in the Israel-occupied West Bank.
  • Norway's sovereign wealth fund said Monday that it had divested from US construction equipment firm Caterpillar over purported involvement in rights violations in the Israel-Hamas war.
  • The fund said it had also withdrawn from five Israeli firms for financing the construction of illegal settlements in the Israel-occupied West Bank.
Norway's sovereign wealth fund said Monday that it had divested from US construction equipment firm Caterpillar over purported involvement in rights violations in the Israel-Hamas war.
Fuelled by Norway's vast energy revenues, the fund is the world's biggest, with a value of nearly $2 trillion and investments in more than 8,600 companies across the globe.
The fund had held a 1.2 percent stake in Caterpillar, valued at 24.4 billion krone ($2.4 billion), as of the end of last year.
The Norwegian central bank, which manages the fund, said it had decided to exclude Caterpillar as it posed "an unacceptable risk... to serious violations of the rights of individuals in situations of war and conflict".
The fund said it had based its decision on a recommendation by its council on ethics.
In a statement, the council said that "bulldozers manufactured by Caterpillar are being used by Israeli authorities in the widespread unlawful destruction of Palestinian property".
"There is no doubt that Caterpillar's products are being used to commit extensive and systematic violations of international humanitarian law," the body said.
It added that the company had "not implemented any measures to prevent such use".
AFP has contacted Caterpillar for comment.
The fund said it had also withdrawn from five Israeli firms for financing the construction of illegal settlements in the Israel-occupied West Bank.
They included First International Bank of Israel, FIBI Holdings, Bank Leumi Le-Israel, Mizrahi Tefahot and Bank Hapoalim.
Earlier this month, the fund said it was selling out of 11 Israeli companies following reports that it had invested in an Israeli jet engine maker even as the war in Gaza raged.
The revelations led Prime Minister Jonas Gahr Store to ask Finance Minister and former NATO secretary general Jens Stoltenberg for a review.
bur-mjw/tym

WNBA

Women's NBA could face lockout as union deal deadline looms

  • That led to the WNBA getting $200 million a season starting next year as part of an 11-year media rights deal worth $2.2 billion the NBA signed with Disney, Amazon and NBCUniversal.
  • Revitalized by Caitlin Clark and other stars and boosted by a new media rights deal, the Women's NBA is struggling to reach a union deal 60 days before the deadline.
  • That led to the WNBA getting $200 million a season starting next year as part of an 11-year media rights deal worth $2.2 billion the NBA signed with Disney, Amazon and NBCUniversal.
Revitalized by Caitlin Clark and other stars and boosted by a new media rights deal, the Women's NBA is struggling to reach a union deal 60 days before the deadline.
Women's National Basketball Players Association executive director Terri Carmichael Jackson told sports business website Front Office Sports in a story published Monday that the union feels a lack of urgency from the league in reaching a new collective bargaining agreement (CBA).
That could force the sides to try and extend the current October 31 deadline to make a deal but it could also herald a labor shutdown and lockout, in lieu of a deal.
"The players are working diligently to achieve a transformational CBA that builds on the growth, momentum, and positive news surrounding women's sports and the W," Jackson told Front Office Sports in a statement.
"As we approach the 60-day mark, the league's lack of urgency leaves players wondering if it is focused on making this work or just running out the clock. Fans do not want that. They are with the players in demanding a new standard for the W."
Players made their own statement while warming up at last month's WNBA All-Star Game, wearing black shirts with white lettering that said, "Pay Us What You Owe Us," in regards to the labor talks.
Clark, who in 2024 became the all-time leading scorer in US college basketball history for men or women, signed with the WNBA's Indiana Fever and is in her second season with the club, which has been at the heart of record viewership and attendance figures for the 13-team league, which began play in 1997.
That led to the WNBA getting $200 million a season starting next year as part of an 11-year media rights deal worth $2.2 billion the NBA signed with Disney, Amazon and NBCUniversal. That begins next year.

Five new teams to come

The WNBA will also receive record fees for expansion teams in Portland and Toronto, set to begin play in 2026, and others worth $250 million each for Detroit, Cleveland and Philadelphia that will take the court by 2030.
The current WNBA regular season will last until September 11 with the playoffs lasting until October 19 at the latest.
Both sides could agree to extend the deadline to avoid a work stoppage and continue talks, as they did in 2019 to set the stage for a new deal in early 2020.
The league must hammer out details of an expansion draft in the labor talks, with a new contract needed to settle free agency and expansion details.
And while the 2025 playoffs are not threatened, a strike or lockout is also a possibility if no deal is made by the end of October.
There are also two rival leagues to consider, who could offer top WNBA talent other options without a new union contract.
Priorities for the union in making a transitional WNBA deal include improved revenue sharing, benefits such as better plane travel, expanded rosters and improved workplace standards.
The first in-person talks came during All-Star Game weekend last month in Indianapolis, but union vice presidents Breanna Stewart and Napheesa Collier described them as a waste of time due to big differences over revenue sharing.
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