Italy

Italy's Meloni seeks EU tariff deal from Trump

BY DANNY KEMP

  • Italian newspapers on Wednesday floated the possibility that Meloni could end up in a trap similar to the White House meeting in February with Ukrainian leader Volodymyr Zelensky, in which Trump and his Vice President JD Vance berated their guest in front of reporters.
  • Italian Prime Minister Giorgia Meloni will meet Donald Trump at the White House on Thursday, hoping a personal charm offensive can help convince the US president to cut the EU a better deal on tariffs.
  • Italian newspapers on Wednesday floated the possibility that Meloni could end up in a trap similar to the White House meeting in February with Ukrainian leader Volodymyr Zelensky, in which Trump and his Vice President JD Vance berated their guest in front of reporters.
Italian Prime Minister Giorgia Meloni will meet Donald Trump at the White House on Thursday, hoping a personal charm offensive can help convince the US president to cut the EU a better deal on tariffs.
The far-right Meloni -- described by Trump as a "fantastic leader" who shares many of his conservative views -- is the first European leader to meet with Trump since his trade war with the bloc began. 
Senior US officials said Meloni and Trump had a "very special relationship," adding she could be a bridge for a deal on tariffs between Europe and Washington.
"Hopefully the Prime Minister and the President will be able to advance the ball down the field," one Trump administration official told reporters ahead of their meeting at 12:00 pm local time (1600 GMT).
"We're open, we're available, we're ready to make deals for countries that take this seriously. So hopefully Italy and the EU are part of that."
Trump is, however, also expected to raise his demand for NATO allies to spend more on defense -- a huge demand for debt-laden Italy.
Meloni has looked to maintain ties with the mercurial leader despite the chaos caused by his tariffs. She has criticized as "wrong" his 20 percent duties on EU exports, which he later suspended for 90 days. 
Amid the uncertainty Meloni has called for cool heads, urging Brussels not to retaliate while casting herself as the only EU figure able to potentially de-escalate the conflict.
Meloni was the only European leader to be invited to Trump's January 20 inauguration and US officials said she was "eye-to-eye with President on a lot of issues like immigration on Ukraine."

'Difficult period'

Russia's war in Ukraine could be a touchy subject, however.
Italian newspapers on Wednesday floated the possibility that Meloni could end up in a trap similar to the White House meeting in February with Ukrainian leader Volodymyr Zelensky, in which Trump and his Vice President JD Vance berated their guest in front of reporters.
Meloni has been a staunch ally of Ukraine and Zelensky since Russia's invasion of the country in 2022, most recently calling Moscow's Palm Sunday attack on the city of Sumy "horrible and vile." 
Meloni has acknowledged the uncertainty weighing on her trip. 
"We know we're going through a difficult period, let's see how it goes in the coming hours. I don't feel any pressure, as you can imagine, for my next two days, let's say," she joked at an awards ceremony for Italian goods Tuesday. 
"Surely, I am aware of what I represent and I am aware of what I am defending," she added.
Italian newspapers reported that one of the goals of Meloni's visit was to pave the way for a meeting between Trump and EU chief Ursula von der Leyen.

'Zero for zero'

Meloni has said the goal should be to eliminate so-called reciprocal duties on existing industrial products as part of a "zero for zero" formula, as floated by the European Commission earlier this month.
Meloni's decision to personally intercede with Trump has caused some disquiet among EU allies, concerned her visit could undermine the unity of the bloc.
"If we start having bilateral discussions, obviously it will break the current dynamic," France's Industry Minister Marc Ferracci warned last week. 
A European Commission spokeswoman said that while the EU alone could negotiate trade agreements, Meloni's "outreach is very welcome" and was coordinated with Brussels.
Following Thursday's meeting with Trump, Meloni will fly back to Rome on Friday in time to host JD Vance, with whom she has a meeting planned.
Trump's threatened tariffs could have a major impact on Italy, the world's fourth-largest exporter, which sends around 10 percent of its exports to the United States.
burs-dk/aha

semiconductors

Nvidia CEO in Beijing as US tech curbs, trade war threaten sales

  • Huang on Thursday expressed hope for "continued cooperation" with China, state media said.
  • Nvidia CEO Jensen Huang held talks with Chinese leaders in Beijing on Thursday, state media said, days after the United States curbed sales of its H20 artificial intelligence chips to China.
  • Huang on Thursday expressed hope for "continued cooperation" with China, state media said.
Nvidia CEO Jensen Huang held talks with Chinese leaders in Beijing on Thursday, state media said, days after the United States curbed sales of its H20 artificial intelligence chips to China.
Nvidia this week said it expected a $5.5 billion earnings hit this quarter due to a new US licensing requirement on GPUs (graphics processing units) with bandwidths similar to the H20, the primary chip it could legally sell in China.
Shares in the company edged lower on Thursday morning after slumping around seven percent on Wednesday.
In Beijing, Huang met with Vice Premier He Lifeng, telling him that he "looked favourably upon the potential of the Chinese economy", according to state news agency Xinhua.
Huang said he was "willing to continue to plough deeply into the Chinese market and play a positive role in promoting US-China trade cooperation", Xinhua said.
The report cited He as saying that the national economy "has always been fertile soil for foreign enterprises to conduct investment and trade".
"We welcome more US enterprises like Nvidia to dig deeply into the Chinese market and display their industrial advantages and capacities, and thereby win the initiative in global competition," He reportedly said.
Huang also met Ren Hongbin, head of the China Council for the Promotion of International Trade, telling him that "China is a very important market for Nvidia", according to state broadcaster CCTV.
Nvidia, a key provider of chips used in AI, is trying to maintain sales in China as US President Donald Trump wages a trade war with Beijing.
Huang on Thursday expressed hope for "continued cooperation" with China, state media said.
Since Trump took office in January, Washington has imposed new tariffs of up to 145 percent on Chinese imports.
Beijing retaliated with 125 percent levies on US goods.
Under Joe Biden, Trump's predecessor, Washington had already restricted exports to China of Nvidia's most sophisticated GPUs, tailored for powering top-end AI models.
Huang has said publicly that Nvidia will balance legal compliance and technological advances under Trump -- but has vowed that nothing will stop the global advance of AI.
"We'll continue to do that and we'll be able to do that just fine," the Taiwan-born entrepreneur told reporters last year.
Nvidia generated $17 billion in China in 2024, 13 percent of its total sales.
sam-mjw/rsc

growth

World economy should avoid recession despite tariffs, IMF chief says

BY DANIEL AVIS

  • Trade disruptions "incur costs," IMF Managing Director Kristalina Georgieva told reporters in Washington on Thursday according to prepared remarks, adding that the Fund now expects "notable" markdowns to growth but no recession.
  • The global economy is likely to avoid a recession despite the hit to growth from US President Donald Trump's tariff rollout, the head of the International Monetary Fund said Thursday. 
  • Trade disruptions "incur costs," IMF Managing Director Kristalina Georgieva told reporters in Washington on Thursday according to prepared remarks, adding that the Fund now expects "notable" markdowns to growth but no recession.
The global economy is likely to avoid a recession despite the hit to growth from US President Donald Trump's tariff rollout, the head of the International Monetary Fund said Thursday. 
The stop-start US tariff plans have fueled levels of market volatility unseen since the Covid-19 pandemic, and most economists expect the imposition of new import levies will stifle growth and push up inflation, at least in the short term.
Trade disruptions "incur costs," IMF Managing Director Kristalina Georgieva told reporters in Washington on Thursday according to prepared remarks, adding that the Fund now expects "notable" markdowns to growth but no recession.
"This is a reminder that we live in a world of sudden and sweeping shifts," she said of the recent market volatility during her speech, which came ahead of next week's Spring Meetings -- a gathering of global financial leaders co-hosted by the IMF and the World Bank in the US capital. 
"And it is a call to respond wisely," she added. 
Her comments suggest the IMF will use its upcoming World Economic Report, published Tuesday, to pare back its previous forecast for global growth to hit 3.3 percent in 2025 and 2026. 

'Uncertainty is costly'

Georgieva said the current tariff tensions would likely have three major consequences for the global economy, with smaller advanced economies and most emerging markets likely to be more heavily affected due to their reliance on trade for growth.
"First, uncertainty is costly," she said, adding that it becomes difficult for business to make plans if they do not know how much their inputs will cost in the future. 
"Second, rising trade barriers hit growth upfront," she said, adding that "tariffs, like all taxes, raise revenue at the expense of reducing and shifting activity."
"Third observation: protectionism erodes productivity over the long run, especially in smaller economies," she said.
Georgieva called on all countries "to put their own houses in order" by -- among other things -- gradually adjusting their fiscal policies to lower debt levels when necessary, and by maintaining an "agile and credible' monetary policy with a "strong commitment" to central bank independence. 

'More level playing field'

Countries should also prioritize tackling internal and external macroeconomic imbalances, Georgieva said.
For China, the IMF has recommended to China that it enact policies "to boost chronically low private consumption," and move the country away from its current state-supported, export-driven model of growth, she said. 
The United States, she added, must work to put rapidly rising government debt "on a declining path."
And for the European Union, the focus should remain on improving competitiveness "by deepening the single market," she said.
Georgieva, who leads an organization that has long championed free trade, privatization, and more open economies, called on the largest countries to chart a path through the current trade uncertainty. 
"In trade policy, the goal must be to secure a settlement among the largest players that preserves openness and delivers a more level playing field," she said. 
The aim, she added, should be "to restart a global trend toward lower tariff rates while also reducing nontariff barriers and distortions."
"We need a more resilient world economy, not a drift to division," she added. "And, to facilitate the transition, policies must allow private agents time to adjust and deliver."
da/tgb/sms

Global Edition

Stocks waver as ECB cuts rate, Trump slams Fed chief

  • Trump hit back Thursday, slamming Powell for not lowering interest rates as the ECB has done and saying his "termination cannot come fast enough".
  • Stock markets wavered Thursday as the European Central Bank cut interest rates and Donald Trump slammed Federal Reserve chief Jerome Powell, who warned that the US president's tariffs would likely fuel inflation.
  • Trump hit back Thursday, slamming Powell for not lowering interest rates as the ECB has done and saying his "termination cannot come fast enough".
Stock markets wavered Thursday as the European Central Bank cut interest rates and Donald Trump slammed Federal Reserve chief Jerome Powell, who warned that the US president's tariffs would likely fuel inflation.
Wall Street's tech-heavy Nasdaq index and the broad-based S&P 500 opened higher, a day after Powell's comments contributed to another market slump.
The Dow, however, extended its losses in early deals.
Powell warned on Wednesday that Trump's sweeping tariffs were "highly likely to generate at least a temporary rise in inflation".
He said it could put the US central bank in the unenviable position of having to choose between tackling inflation and unemployment.
Trump hit back Thursday, slamming Powell for not lowering interest rates as the ECB has done and saying his "termination cannot come fast enough".
"All-in-all, the trade news and Powell's comments provided a tough backdrop for market," said a Deutsche Bank analyst note.
The ECB, meanwhile, cut rates for the sixth consecutive time as it warned that "the outlook for growth has deteriorated owing to rising trade tensions".
ECB President Christine Lagarde, however, said the tariffs' impact on inflation would only get "clearer over time".
Trump imposed 10-percent tariffs on all imports this month, though he suspended higher duties on dozens of nations for 90 days. 
He has also placed 25-percent levies on steel, aluminium and cars.
Investors found solace in Trump declaring "Big Progress!" in tariff negotiations with Japan.
Tokyo's envoy Ryosei Akazawa said: "I understand that the US wants to make a deal within the 90 days. For our part, we want to do it as soon as possible."
Tokyo led Asian stocks higher.
With Japanese companies the biggest investors into the United States, Tokyo's negotiations are of particular interest to markets.
While Japan's Prime Minister Shigeru Ishiba warned that the talks "won't be easy", he said the president had "expressed his desire to give the negotiations... the highest priority".
Elsewhere, safe-haven investment gold hit a fresh record above $3,357.78 an ounce before paring back gains, while the dollar and oil prices firmed.
Hopes that Trump's blistering tariffs could be pared back have helped temper some of the disquiet on markets after a rout at the start of the month fuelled by talk of a global recession and an upending of historic trading norms.
"But don't get carried away -- the market remains jittery," said Fawad Razaqzada, market analyst at City Index and Forex.com

Key figures at 1335 GMT

New York - Dow: DOWN 1.3 percent at 39,167.49 points
New York - S&P 500: UP 0.2 percent at 5,288.21
New York - Nasdaq: UP 0.1 percent at 16,322.87 
London - FTSE 100: DOWN 0.5 percent at 8,235.68
Paris - CAC 40: DOWN 0.7 percent at 7,277.29
Frankfurt - DAX: DOWN 0.6 percent at 21,174.48
Tokyo - Nikkei 225: UP 1.4 percent at 34,377.60 (close)
Hong Kong - Hang Seng Index: UP 1.6 percent at 21,395.14 (close)
Shanghai - Composite: UP 0.1 percent at 3,280.34 (close)
Euro/dollar: DOWN at $1.1358 from $1.1395 on Wednesday
Pound/dollar: UP $1.3251 at $1.3235
Dollar/yen: UP at 142.18 yen from 142.12 yen 
Euro/pound: DOWN at 85.71 pence from 86.06 pence
Brent North Sea Crude: UP 1.1 percent at $66.57 per barrel
West Texas Intermediate: UP 1.2 percent at $62.57 per barrel
dan-bcp-lth/jj

economy

Trump says Fed chief's 'termination cannot come fast enough'

BY ASAD HASHIM

  • The US president does not have the authority to fire Federal Reserve governors directly.
  • US President Donald Trump said Thursday that "termination" of the independent head of the Federal Reserve "cannot come fast enough" as he lashed out at Jerome Powell's warnings of tariffs-fueled inflation.
  • The US president does not have the authority to fire Federal Reserve governors directly.
US President Donald Trump said Thursday that "termination" of the independent head of the Federal Reserve "cannot come fast enough" as he lashed out at Jerome Powell's warnings of tariffs-fueled inflation.
In a scathing post on his Truth Social app, Trump repeated a demand for Powell to lower interest rates, suggesting the Fed Chair's decisions were "always TOO LATE AND WRONG."
"Powell's termination cannot come fast enough," Trump wrote. "Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now."
Trump was referring to the European Central Bank, which on Thursday lowered its benchmark deposit rate by a quarter point.
Powell warned Wednesday that Trump's sweeping tariffs on virtually every trade partner could put the Fed in the unenviable position of having to choose between tackling inflation and unemployment.
Trump's stop-start tariff policy has unnerved investors and trading partners, leaving them unsure about his long-term strategy and what it might mean for international trade.
Trump has repeatedly urged Powell to cut interest rates, but the US central bank has adopted a wait-and-see attitude, holding rates steady at 4.25 to 4.5 percent since the start of this year.
The Republican has frequently criticized the Fed chairman, whom he originally nominated during his first term, accusing Powell of playing politics in his role running the central bank.
On the campaign trail in August, Trump threatened that independence by suggesting the White House should have a "say" in setting monetary policy. 
The US president does not have the authority to fire Federal Reserve governors directly. If he chooses to, Trump could initiate a lengthy process to attempt to unseat Powell by proving there was "cause" to do so.

Powell pledges to stay

While presidents have a long history of clashing with Fed chiefs, any move to force Powell to leave office would be unprecedented in modern US political history.
Speaking on April 4, Powell insisted he had no plans to step down as Fed chairman before his term ends next year. 
"I fully intend to serve all of my term," he said at an event in Virginia.
At the time, Powell also suggested that the Fed was in no rush to cut its benchmark lending rate from its current elevated level.
Financial markets see a roughly two-thirds chance that policymakers will vote to keep rates unchanged again at the next Fed interest rate meeting in May, according to data from CME Group.
Setting key interest rates is one of the primary levers the Fed exercises in its dual mandate of managing inflation and unemployment.
Lowering interest rates serves to make borrowing cheaper and tends to kickstart the economy by encouraging investment, while raising them -- or keeping them steady at higher rates -- can help cool inflation.
US year-on-year consumer inflation slowed to 2.4 percent in March, bringing it closer to the Fed's long-term two-percent target.
That drop was aided by a 6.3-percent fall in gasoline prices, according to official data.
tjx-aha/sms

banking

ECB cuts rates as Trump tariffs raise fears for eurozone growth

BY LOUIS VAN BOXEL-WOOLF WITH SEBASTIEN ASH IN BERLIN

  • The ECB had looked set to pause its cuts after its last meeting in March but the fears stirred up by Trump's whirlwind tariff policy look to have forced its hand. 
  • The European Central Bank cut interest rates again Thursday amid fears that US President Donald Trump's stop-start tariff announcements could threaten growth across the eurozone.
  • The ECB had looked set to pause its cuts after its last meeting in March but the fears stirred up by Trump's whirlwind tariff policy look to have forced its hand. 
The European Central Bank cut interest rates again Thursday amid fears that US President Donald Trump's stop-start tariff announcements could threaten growth across the eurozone.
ECB policymakers decided to lower rates by a quarter-point, marking the central bank's sixth consecutive cut to borrowing costs for the single-currency area.
The decision brought the ECB's benchmark deposit rate down to 2.25 percent, the lowest it has been since the beginning of 2023. 
Rate-setters have slowly lowered borrowing costs in the eurozone as inflation has drifted back towards the ECB's two-percent target.
But while inflation was headed in the right direction, "the outlook for growth has deteriorated owing to rising trade tensions", the ECB said in a statement.
The ECB had looked set to pause its cuts after its last meeting in March but the fears stirred up by Trump's whirlwind tariff policy look to have forced its hand. 
Thursday's cut "came as little surprise", ING bank analyst Carsten Brzeski said.
Having sought a "very measured" approach to gradually bring rates down, the ECB now risked "falling behind the curve once again", Brzeski said.

Tariff confusion

Going into the meeting, ECB rate-setters will have had little idea what tariff rates would eventually apply to transatlantic trade -- and what impact they could have on growth.
Besides a basic 10 percent tariff rate on imports into the United States, Trump has also imposed 25 percent levies on the automotive, steel and aluminium sectors.
The US president spooked global markets with the unveiling of swingeing "Liberation Day" tariffs at the beginning of April, before promptly pausing higher duties for dozens of countries, including the EU, for 90 days. 
The White House has also opened probes into chips and pharmaceuticals that could lead to more industry-specific tariffs that could impact the eurozone.
The ECB said it was facing "exceptional uncertainty" and would follow a "data-dependent and meeting-by-meeting" approach as it went forward. 
The uncertainty was "likely to reduce confidence among households and firms", the central bank said, while market tensions would lead to tighter financing conditions. 
In that context, another cut to relieve stress on households and businesses and support the economy seemed "straightforward", according to analysts at Italian lender UniCredit.
The ramifications of higher US tariffs would "outweigh the positive impulse" given by massive planned spending in the eurozone's biggest member, Germany, they said. 
The incoming government in Berlin led by Friedrich Merz has lined up hundreds of billions of euros in extra cash for defence and infrastructure, providing a boost that could be felt across Europe.

'Always ready'

But Germany's stimulus measures would only "kick in" in 2026, while the impact of Trump's shake-up of the global trading system would be felt almost immediately, the UniCredit analysts warned. 
As for the prices of goods and services, US tariffs made a "further decline in inflation in the eurozone even more likely", said Robert Greil, a strategist at private bank Merck Finck.
Inflation among the 20 members of the eurozone has come down significantly from the double-digit highs seen in late 2022 and sat at 2.2 percent in March. 
The single currency has gained in strength relative to the dollar, which should make imports cheaper going forward, while hefty US tariffs on China could see cheap goods diverted to Europe, Greil said.
Observers will listen carefully to ECB president Christine Lagarde's remarks after the rates announcement for a hint of how the ECB may respond going forward.
Lagarde last week signalled policymakers' willingness to support the eurozone in a more critical scenario, where Trump's tariff policy caused a threat to financial stability. 
The ECB "is always ready to use the instruments that it has available", Lagarde said in Warsaw.
vbw-sea/fec/lth

fashion

N.Ireland designer Jonathan Anderson takes helm at Dior Men

BY ADAM PLOWRIGHT

  • Anderson replaces British designer Kim Jones at Dior Men.
  • French fashion giant Dior named the highly-rated designer Jonathan Anderson as creative director of Dior Men on Thursday.
  • Anderson replaces British designer Kim Jones at Dior Men.
French fashion giant Dior named the highly-rated designer Jonathan Anderson as creative director of Dior Men on Thursday.
Anderson, 40, quit Loewe last month after more than a decade in which he turned around the fortunes of the heritage Spanish brand.
The Northern Irish designer -- an influential tastemaker with many A-list fans -- made the previously rather sleepy label, best known for its handbags, hot.
Fashion mogul Bernard Arnault, whose LVMH conglomerate owns both Dior and Loewe, broke the news at a shareholders meeting in Paris.
"I can tell you that the next Christian Dior men's fashion show, which will take place in June (in Paris), will be created by Jonathan Anderson," he said.
There had been much speculation that Anderson, renowned for his creative flights of fancy, might take over both Dior's men's and women's collections, which some observers had seen as needing fresh impetus.
Dior womenswear designer Maria Grazia Chiuri has presided over years of growth since taking over from Raf Simons in 2016, with her modernisation and feminist activism helping attract new customers.
Revenues are estimated to have more than tripled on the Italian's watch.
Anderson replaces British designer Kim Jones at Dior Men. He stepped down at the end of January after seven years, also with a strong commercial track record, having introduced a younger streetwear-influenced look to the classic looks of the label.
- Tricky market - 
But Anderson's arrival comes at a time when the luxury industry as a whole is facing increasingly tricky market conditions, with a slowdown in China and an escalating global trade war causing concern.
The move is part of a major reshuffling of top jobs at fashion brands after a round of resignations and forced departures.
A long list of labels are either bedding in new designers or looking for fresh talent including Chanel, Celine, Fendi, Givenchy, Gucci, Dries Van Noten and Tom Ford.
The success of Dior's clothing and leather goods division is of crucial financial and dynastic importance to LVMH owner Arnault, one of the world's wealthiest men.
He placed his daughter Delphine in charge of Dior Couture in February 2023.
Anderson, the son of former Irish rugby international Willie Anderson, is known as a low-key figure, who often appears dressed casually at the end of his shows.
He trained at the London College of Fashion and began his career in Prada's marketing department before launching his own brand, JW Anderson, in 2008.
During his time at Loewe, he launched a new modern classic bag -- the Puzzle -- and dressed celebrities from Beyonce to Rihanna.
adp-fg/cw

inflation

Turkish central bank raises interest rate to 46 percent

BY FULYA OZERKAN

  • It also follows US President Donald Trump's global tariffs that sparked growing economic uncertainty despite the relatively low 10 percent baseline tariff that Washington has applied to Turkey.
  • Turkey's central bank hiked its key interest rate to 46 percent on Thursday after a month of protests over the arrest of Istanbul's opposition mayor and economic uncertainty provoked by US President Donald Trump's sweeping tariffs. 
  • It also follows US President Donald Trump's global tariffs that sparked growing economic uncertainty despite the relatively low 10 percent baseline tariff that Washington has applied to Turkey.
Turkey's central bank hiked its key interest rate to 46 percent on Thursday after a month of protests over the arrest of Istanbul's opposition mayor and economic uncertainty provoked by US President Donald Trump's sweeping tariffs. 
That represents the first hike since March 2024, in what economists hail as a "strong signal of commitment" to a tight monetary policy stance. 
The rate hike came as Turkey was roiled by street protests against the arrest and jailing last month of Istanbul's popular mayor, Ekrem Imamoglu, on graft charges he denies, which sent the Turkish lira to record lows against the dollar. 
It also follows US President Donald Trump's global tariffs that sparked growing economic uncertainty despite the relatively low 10 percent baseline tariff that Washington has applied to Turkey.
The monetary policy committee "has decided to raise the policy rate from 42.5 percent to 46 percent," the central bank said in a statement.

Risks to inflation

Nicholas Farr, emerging Europe economist at London-based Capital Economics, said the decision "is a strong signal of commitment to a tight policy stance", in a policy note. 
It also "suggests that policymakers have become more concerned about upside risks to inflation," he said.
Turkey's annual inflation that soared to 75 percent in May last year fell to 38.1 percent in March, its lowest level since December 2021, according to official figures released early this month.
But in April, "monthly core goods inflation is expected to rise slightly due to recent developments in financial markets," the bank warned, saying that policymakers would closely monitor capital flows amid the current uncertainty around US trade protectionism.
Turkish authorities are officially targeting 24 percent inflation by the end of 2025. 
In addition to calls for boycotts against companies close to the government, the wave of protests has led to a significant decline in the Istanbul Stock Exchange, which has lost more than 13 percent since its close on March 18.
On the day of Imamoglu's arrest, the Turkish lira had plummeted by around 12 percent, reaching its lowest level ever. 
This drastic drop was brief, but the lira has still lost more than four percent against the dollar since March 19, despite the $50 billion injection by the central bank to limit the damage. 
The bank said Thursday the tight monetary stance would be maintained "until price stability is achieved via a sustained decline in inflation.
"The Committee will adjust the policy rate prudently on a meeting-by-meeting basis with a focus on the inflation outlook," the bank said. 
"Monetary policy stance will be tightened in case a significant and persistent deterioration in inflation is foreseen."
fo/cw

dollar

Trump's tariff storm a threat to dollar's dominance?

BY LUCIE LEQUIER WITH NINA ISENI IN WASHINGTON

  • - The dollar initially gained on news of Trump's tariffs owing to concerns the levies will push up inflation.
  • As President Donald Trump's tariffs threaten the US economy, questions are being asked about how long the dollar can maintain its status as the world's key trading and reserve currency. 
  • - The dollar initially gained on news of Trump's tariffs owing to concerns the levies will push up inflation.
As President Donald Trump's tariffs threaten the US economy, questions are being asked about how long the dollar can maintain its status as the world's key trading and reserve currency. 
AFP examines the greenback's current situation and outook:

Is the dollar still all-powerful?

The dollar, whose strength is based on the economic and political power of the United States, is traditionally considered a preferred safe haven in times of crisis or conflict.
Almost 58 percent of foreign exchange reserves together held by the world's central banks were denominated in dollars as of the final quarter last year, according to the International Monetary Fund.
That compares with 71 percent in 1999, with the drop attributed to rising competition from smaller currencies.
Roughly half of all global transactions by value are currently in dollars, compared with around 22 percent for the euro, seven percent for the pound sterling, and four percent for the Chinese yuan, according February data from international payments facilitator Swift. 
Many strategic commodities, such as oil, are quoted in the greenback, reinforcing its central role across global trade.
However, the recent decline in the dollar's value suggests its safe haven status "has at least temporarily disappeared" in favour of the Swiss franc, yen and gold, Ryan Chahrour, a professor of economics at Cornell University, told AFP.

'Exorbitant privilege'?

Before the dollar took charge, sterling dominated international trade, driven by the UK's status as an industrial powerhouse beginning in the 19th century.
However, following the Second World War, a ruined Europe desperately needed liquidity, while the United States found itself in a position of strength. 
The dollar emerged as the new reference currency under the Bretton Woods accords of 1944, which laid the foundations for the current international monetary system. 
Many countries have since chosen to peg their currency to the US unit, while demand for dollars has allowed the world's biggest economy to borrow freely, theoretically without limits, with its debt largely owed to foreign investors.
Former French finance minister Valery Giscard d'Estaing described this economic advantage enjoyed by the United States as an "exorbitant privilege", ahead of becoming French president in the 1970s.
On the other hand, the relative strength of the greenback despite recent turmoil makes American exports more expensive.
To counter this, Trump advisor Stephen Miran is considering major global reform aimed at devaluing the US currency. 
At the same time, several central banks have begun a process of "de-dollarising" their reserves. 
By using the dollar extensively, countries and companies expose themselves to US sanctions -- as illustrated by the freezing of Russia's foreign exchange reserves abroad following its invasion of Ukraine in early 2022.

Why is Trump shaking the dollar?

The dollar initially gained on news of Trump's tariffs owing to concerns the levies will push up inflation.
However, that has given way to rising fears that global growth will be impacted, causing recent heavy falls for oil prices that in turn have reduced inflationary pressures.
Expectations that the US Federal Reserve could cut interest rates to prop up the economy are also weighing on the dollar.
Another fear is that the Fed is no longer fulfilling its role as lender of last resort, as it limits the availability of dollars to other central banks.
Trump is contributing to "undermining the foundations of dollar dominance", tarnishing the reputation of the United States, believes Mark Sobel, a former senior US Treasury official. 
He argues that in addition to weakening the country's economic strength through his trade policy, Trump is challenging the rule of law.
"The United States is not acting like a reliable partner or trusted ally," he told AFP.

What alternatives?

Sobel said it is "premature to say dollar dominance is going away or the dollar has lost its kind of global status because there aren't alternatives".
Stefan Lewellen, assistant professor of finance at Pennsylvania State University, said it is not yet time to write the currency's "obituary".
Looking at why the euro is not ready to take the helm, he added that the European single currency is "fundamentally still governed by individual nations that have mixed incentives to cooperate". 
Among other units, he said the Canadian and Australian dollars, as well as the Swiss franc, are limited by the modest size of their markets. 
As for the yuan, it remains under Beijing's strict control, owing to the lack of free convertibility and restrictions on capital movements.
lul-ni/zap/bcp/jkb/lth

trade

EU hopes Trump tariffs can nudge Mercosur deal past finish line

BY ADRIEN DE CALAN

  • In exchange, the South American nations would be able to export meat, sugar, rice and soybeans, which worries European farmers concerned about cheaper goods pricing them out.
  • The spectre of a transatlantic trade war is also fuelling hopes of a silver lining in Europe: that a commerce deal with four South American countries could get a final green light despite longstanding French opposition.
  • In exchange, the South American nations would be able to export meat, sugar, rice and soybeans, which worries European farmers concerned about cheaper goods pricing them out.
The spectre of a transatlantic trade war is also fuelling hopes of a silver lining in Europe: that a commerce deal with four South American countries could get a final green light despite longstanding French opposition.
Forced to come to terms with the growing cracks in its biggest trading relationship, worth 1.6 trillion euros ($1.8 trillion), the EU believes it's time to chase opportunities elsewhere.
"The global balance is shifting, and we Europeans need (new trading partners) very quickly," incoming German chancellor Friedrich Merz said last weekend.
Such is Merz's determination, he suggested French President Emmanuel Macron could be swayed into a U-turn to back the EU accord with Mercosur bloc members Argentina, Brazil, Paraguay and Uruguay -- despite strident opposition from France's farmers.
Twenty-five years in the making, the deal to create a 700-million-customer free-trade area was clinched last December by the European Commission -- but still needs to be signed by member states and the EU parliament.
Macron would "now tend" to look more favourably on the Mercosur accord, Merz asserted.
Paris has so far slapped down such suggestions. "The draft deal hasn't changed and therefore is unacceptable as it stands," a French diplomatic source said.
But EU officials believe they can convince countries opposed to the Mercosur deal through offers of financial support, for example, for farmers affected by rising imports.

With or without France?

Faced with an unpredictable US partner, the EU has ramped up efforts to cut more trade deals -- deciding last week to launch talks on an agreement with the United Arab Emirates, for example.
"In an unstable world, partnerships with trusted allies around the world with clearly defined rules for mutual gain are more valuable than ever," an EU spokesman has said.
There is a growing sense in Brussels that in the current climate French opposition -- even if it holds -- may not be insurmountable.
To be approved, the Mercosur deal must receive the backing of at least 15 of 27 EU states, representing a minimum of 65 percent of the population.
France had hoped to form a blocking minority but "given the context, it probably won't", a European Commission official said.

'Cushion' tariff shocks

While Poland still opposes the Mercosur deal, there appears to be a change of heart among some in Vienna, another high-profile opponent, after Trump imposed sweeping tariffs.
Austrian Economy Minister Wolfgang Hattmannsdorfer now supports the agreement. "We need it now," he said, even though the country's three-way coalition government remains officially against.
Pushed on the matter, French Agriculture Minister Annie Genevard admitted this week it was a source of unease between France and Germany.
But she vowed it was out of the question to "sacrifice French agriculture on the altar of an agreement at any cost".
French resistance is also being tested at home: the country's central bank governor Francois Villeroy de Galhau briefed Macron last week that such agreements "could further cushion tariff shocks linked to US trade policy".
In the case of the Mercosur deal, it would make it easier for the EU to export cars, machinery, pharmaceutical products and alcoholic beverages.
In exchange, the South American nations would be able to export meat, sugar, rice and soybeans, which worries European farmers concerned about cheaper goods pricing them out.
Farmers are crying foul over supposedly less stringent regulations on the sector and have staged protests across Europe.

Macron under pressure

Brussels has promised to reassure all member states and wants to present a text before the end of summer for final approval to parliament -- where its fate is also uncertain.
"We don't know which way it will go" in the event of a vote, French centrist lawmaker Marie-Pierre Vedrenne told AFP.
Vedrenne said continued opposition "wouldn't be very serious or responsible".
But she believes Macron's position hasn't changed, explaining that opposition to Mercosur has "become a matter of national unity".
One EU official went further.
"The French government would fall" if it supported the deal, the official said -- after snap elections last year produced a hung parliament with Macron's centrists in the minority.
Poland currently holds the rotating EU presidency and as one of the countries most opposed, it is not expected to push for a Mercosur vote.
But when Denmark takes the reins in July, expect the inflammatory issue to return to the agenda.
burs-raz/ec/lth

earnings

Taiwan's TSMC net profit soars as US tariff threat looms

BY AMBER WANG AND ALLISON JACKSON

  • Wei said on Thursday that "TSMC is not engaged in any discussion with other companies regarding any joint venture, technology licensing or technology transfer and sharing". aw-joy-amj/pbt
  • Taiwanese chipmaking titan TSMC reported on Thursday a surge in net profit for the first quarter and forecast robust demand for artificial intelligence technology, despite the spectre of US tariffs on the critical sector.
  • Wei said on Thursday that "TSMC is not engaged in any discussion with other companies regarding any joint venture, technology licensing or technology transfer and sharing". aw-joy-amj/pbt
Taiwanese chipmaking titan TSMC reported on Thursday a surge in net profit for the first quarter and forecast robust demand for artificial intelligence technology, despite the spectre of US tariffs on the critical sector.
Taiwan Semiconductor Manufacturing Company is the world's largest contract maker of chips that have become the lifeblood of the global economy, powering everything from smartphones to missiles.
Demand for chips has soared in recent years with the growth of AI technology, but there are fears US President Donald Trump's far-reaching tariffs could drive up consumer prices and hurt chipmakers.
TSMC, which counts Nvidia and Apple among its clients, said its net profit for the first three months of 2025 rose 60.3 percent from a year ago to NT$361.56 billion ($11.1 billion).
That beat expectations of NT$346.76 billion, according to a Bloomberg News survey of analysts.
Net revenue for the quarter soared nearly 42 percent to NT$839.25 billion on-year, also beating forecasts, figures released by the company last week showed.
The first quarter ended before Trump's "Liberation Day" tariffs on April 2.
TSMC chairman and chief executive C.C. Wei said the company understood there were "uncertainties and risk from the potential impact of tariff policies" but so far it had not detected "any change in customer behaviour".  
"We continue to expect our full-year 2025 revenue to increase by close to mid-20s percent in US dollar terms," Wei said, adding that AI-related demand was also expected to be "robust".
"We might get a better picture in the next few months and we will continue to closely monitor the potential impact to the end-market demand and manage our business prudently," Wei said.
TSMC's earnings follow Nvidia's announcement that it expects a $5.5 billion hit this quarter owing to a new US licensing requirement on the H20 chips it can legally sell in China.
Dutch tech giant ASML, which makes machines that produce semiconductors, also warned of growing economic uncertainty due to US tariffs but kept its 2025 sales forecast intact.

Tariff impact

TSMC has been in the cross-hairs of Trump, who has accused Taiwan of stealing the US chip industry.
There had been hopes that TSMC's plan to invest an additional $100 billion in the United States would shield Taiwan from new tariffs.
Trump still imposed a 32 percent duty on Taiwanese imports as part of his sweeping tariffs on global trade partners -- which he later paused for 90 days -- but it excluded semiconductors.
Washington is pushing forward with plans to slap import levies on semiconductors and chip-making equipment, with the launch of "national security" probes into the industry.
Taiwan's Minister of Economic Affairs Kuo Jyh-huei said on Tuesday the government would carry out simulations to gauge the possible impact of US tariffs.
Taiwanese negotiators have started talks with US officials over Trump's tariffs but Wei said TSMC was "not getting involved".
Taiwan already pledged to increase investment in the United States, purchase more US energy and boost defence spending to more than three percent of GDP in a bid to head off Trump's levies.
Also clouding the outlook for TSMC was a report that it planned to form a joint venture with Intel to operate the American company's chipmaking facilities.
Wei said on Thursday that "TSMC is not engaged in any discussion with other companies regarding any joint venture, technology licensing or technology transfer and sharing".
aw-joy-amj/pbt

luxury

Hermes to hike US prices to offset tariff impact

  • Trump imposed a 10 percent tariff on imports from around the world this month, but he delayed higher duties on dozens of other countries, including a 20 percent levy for goods from the European Union.  kap/jbo/lth/ach 
  • French luxury group Hermes said Thursday it would hike its prices in the United States to offset the impact of 10-percent import tariffs imposed by President Donald Trump.
  • Trump imposed a 10 percent tariff on imports from around the world this month, but he delayed higher duties on dozens of other countries, including a 20 percent levy for goods from the European Union.  kap/jbo/lth/ach 
French luxury group Hermes said Thursday it would hike its prices in the United States to offset the impact of 10-percent import tariffs imposed by President Donald Trump.
Famous for its Birkin handbag, silk scarves and leather goods, the increases would take effect on May 1, said the group's finance chief, Eric Halgouet.
Halgouet did not say by how much prices would be raised, but he said the move would "fully offset" the tariffs impact.
"It will be a complementary price increase that we are currently finalising, but which will allow us to neutralise this impact," he told reporters during a quarterly earnings presentation.
Hermes, also known for the "H" logo on its belts and other goods, usually raises prices once a year and had already announced worldwide increase of between six and seven percent earlier in 2025.
Hermes overtook French rival LVMH as the world's most valuable luxury group this week after the share price of the Louis Vuitton maker sank on disappointing earnings.
Hermes posted global sales of 4.1 billion euros ($4.7 billion) in the first quarter of 2025, an 8.5 percent increase from the same period last year.
Sales in the Americas region jumped 13.3 percent to 695 million euros, with double-digit growth in the United States, Canada, Mexico and Brazil, Halgouet said.
US sales were disrupted by wildfires in Los Angeles, which forced the closure of two shops for several days, and snow storms in other states.
Trump imposed a 10 percent tariff on imports from around the world this month, but he delayed higher duties on dozens of other countries, including a 20 percent levy for goods from the European Union. 
kap/jbo/lth/ach 

trade

Unease grows over Trump tariffs despite 'progress' in Japan trade talks

BY KYOKO HASEGAWA WITH SEBASTIAN SMITH AND DANIEL AVIS IN WASHINGTON

  • He also noted the "volatility" in the markets at a "time of high uncertainty."
  • Uncertainty over Donald Trump's tariff blitz mounted Thursday after the Fed chief warned of rising prices and "volatility" while "progress" flagged by the US president in talks with Japan lifted markets slightly.
  • He also noted the "volatility" in the markets at a "time of high uncertainty."
Uncertainty over Donald Trump's tariff blitz mounted Thursday after the Fed chief warned of rising prices and "volatility" while "progress" flagged by the US president in talks with Japan lifted markets slightly.
Trump is banking that his tariffs will lead to a bonanza of beneficial trade deals, lowering barriers to US products and shifting global manufacturing to the United States.
But his trade negotiations -- including with Japan on Wednesday -- are proceeding against a backdrop of deepening confrontation with economic rival China and mounting concern over widespread disruption.
Federal Reserve boss Jerome Powell said Wednesday that tariffs are "highly likely" to provoke a temporary rise in inflation and could prompt "more persistent" price increases.
He also noted the "volatility" in the markets at a "time of high uncertainty."
That unease hit Wall Street, where the Nasdaq at one point plummeted more than four percent on Wednesday, the S&P more than three percent and the Dow Jones more than two.
Nvidia momentarily dropped more than 10 percent after disclosing major costs due to new US export restrictions on sending semiconductors to China.
Asian markets were mostly in positive territory on Thursday, with Japan's Nikkei up almost one percent and the Hang Seng 1.25 percent higher.
World Bank chief Ajay Banga echoed Powell, saying that "uncertainty and volatility are undoubtedly contributing to a more cautious economic and business environment."
And World Trade Organization head Ngozi Okonjo-Iweala said the uncertainty "threatens to act as a brake on global growth, with severe negative consequences for the world, the most vulnerable economies in particular."

China says 'no winner'

While most of the rest of the world has been slapped with a blanket 10 percent tariff, China faces new levies of up to 145 percent on many products. 
Beijing has responded with duties of 125 percent on US goods.
"If the US really wants to resolve the issue through dialogue and negotiation, it should stop exerting extreme pressure, stop threatening and blackmailing, and talk to China on the basis of equality, respect and mutual benefit," Chinese Foreign Ministry spokesman Lin Jian said Wednesday.
China said on Wednesday that it saw a forecast-beating 5.4 percent jump in growth in the first quarter as exporters rushed to get goods out of factory gates ahead of the US levies.
But Heron Lim from Moody's Analytics told AFP the impact would be felt in the second quarter, as tariffs begin "impeding Chinese exports and slamming the brakes on investment."

Japan test case?

After meeting Japan's tariffs envoy, Trump posted on his Truth Social platform that there had been "big progress".
But after Ryosei Akazawa concluded his talks with Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer it became clear that no immediate breakthrough was made.
"Of course, the discussions going forward won't be easy, but President Trump has expressed his desire to give the negotiations with Japan the highest priority," Prime Minister Shigeru Ishiba said in Tokyo.
"We recognise that this round of talks has created a foundation for the next steps, and we appreciate that," Ishiba said.
But he added: "Of course there is a gap between Japan and the US."
Japanese companies are the biggest investors into the United States and Japan is a vital strategic ally for Washington in the Asia-Pacific region.
But Japan is subject to the same 10-percent baseline tariffs imposed by Trump on most countries as well as painful levies on cars, steel and aluminum.
Trump reportedly wants Japan to buy more US defense equipment and to do more to strengthen the yen against the dollar. Akazawa said that the latter issues was not discussed.
Stephen Innes at SPI Asset Management said before the talks that traders were "waiting to see if Akazawa can thread the needle — cut a side deal, dodge Trump's sledgehammer, and limp out with bruises instead of a shattered jaw."
Officials from Indonesia held talks in Washington on Wednesday. The finance minister of South Korea, a major semiconductor and auto exporter, will meet Bessent next week.
Although popular among Republicans, the tariffs war is politically risky for Trump at home. 
California Democratic Governor Gavin Newsom announced he was launching a new court challenge against Trump's "authority to unilaterally enact tariffs, which have created economic chaos, driven up prices, and harmed the state, families, and businesses."
burs-stu/tym

trade

Trump tariffs provoke growing economic uncertainty

BY SEBASTIAN SMITH AND DANIEL AVIS WITH SAM DAVIES IN BEIJING

  • The Daiwa Institute of Research warned on Wednesday that Trump's reciprocal tariffs could cause a decline of 1.8 percent in Japan's real GDP by 2029.
  • Concern over the economic fallout from US President Donald Trump's global tariffs mounted Wednesday, with Fed Chair Jerome Powell's warning of higher inflation sending stock markets tumbling.
  • The Daiwa Institute of Research warned on Wednesday that Trump's reciprocal tariffs could cause a decline of 1.8 percent in Japan's real GDP by 2029.
Concern over the economic fallout from US President Donald Trump's global tariffs mounted Wednesday, with Fed Chair Jerome Powell's warning of higher inflation sending stock markets tumbling.
Trump remained upbeat, posting on social media that there'd been "Big Progress!" in talks with Japan on a trade deal.
He is banking that his strategy, in which tariffs are meant to lead to multiple individual country agreements, will lower barriers to US products and shift global manufacturing to the United States.
But those negotiations are running parallel to a deepening confrontation with top US economic rival China -- and concern over widespread disruption.
Powell said tariffs are "highly likely" to provoke a temporary rise in prices and could prompt "more persistent" increases.
He also noted the "volatility" on the markets in a "time of high uncertainty."
That volatility was visible on Wall Street where the Nasdaq at one point plummeted more than four percent, the S&P more than three percent and the Dow Jones more than two.
Leading the downward charge was Nvidia, which momentarily dropped more than 10 percent after disclosing major costs due to new US export restrictions on semiconductors imposed as part of Trump's tussle with China.
World Bank chief Ajay Banga echoed Powell, telling reporters that, "uncertainty and volatility are undoubtedly contributing to a more cautious economic and business environment."

China says 'no winner'

While the rest of the world has been slapped with a blanket 10 percent tariff, China faces levies of up to 145 percent on many products. Beijing has responded with duties of 125 percent on US goods.
"If the US really wants to resolve the issue through dialogue and negotiation, it should stop exerting extreme pressure, stop threatening and blackmailing, and talk to China on the basis of equality, respect and mutual benefit," Chinese Foreign Ministry spokesman Lin Jian said.
"There is no winner in a tariff war or a trade war," Lin said, adding: "China does not want to fight, but it is not afraid to fight."
China said on Wednesday that it saw a forecast-beating 5.4 percent jump in growth in the first quarter as exporters rushed to get goods out of factory gates ahead of the US levies.
But Heron Lim from Moody's Analytics told AFP the impact would be felt in the second quarter, as tariffs begin "impeding Chinese exports and slamming the brakes on investment."
World Trade Organization head Ngozi Okonjo-Iweala said the uncertainty brought by the tariffs "threatens to act as a brake on global growth, with severe negative consequences for the world, the most vulnerable economies in particular."

Japan test case?

Ahead of the Japan talks, Trump posted on his Truth Social platform that he hoped "something can be worked out which is good (GREAT!) for Japan and the USA!"
Japan's envoy said he was optimistic of a "win-win" outcome for both countries.
South Korea, a major semiconductor and auto exporter, said Finance Minister Choi Sang-mok would meet US Treasury Secretary Scott Bessent next week.
"The current priority is to use negotiations... to delay the imposition of reciprocal tariffs as much as possible and to minimize uncertainty for Korean companies operating not only in the US but also in global markets," Choi said on Tuesday.
But Stephen Innes at SPI Asset Management called the discussions with Japan the "canary in the tariff coal mine."
"If Japan secures a deal -- even a half-baked one -- the template is set. If they walk away empty-handed, brace yourself. Other nations will start pricing in confrontation, not cooperation," he wrote in a newsletter.
The Daiwa Institute of Research warned on Wednesday that Trump's reciprocal tariffs could cause a decline of 1.8 percent in Japan's real GDP by 2029.
Although popular among Republicans, the tariffs war is politically risky for Trump at home. 
California Democratic Governor Gavin Newsom announced he was launching a new court challenge against Trump's "authority to unilaterally enact tariffs, which have created economic chaos, driven up prices, and harmed the state, families, and businesses."
burs-sms/dw

trial

Zuckerberg denies Meta bought rivals to conquer them

BY ELODIE SOINARD

  • The co-founder of Facebook responded "No" when asked by Meta attorney Mark Hansen if his intent was to eliminate rivals with the purchases of photo sharing app Instagram and messaging service WhatsApp.
  • Meta chief executive Mark Zuckerberg on Wednesday denied in court that his company bought rival services Instagram and WhatsApp to neutralize them, as his testimony in a landmark antitrust case came to a close.
  • The co-founder of Facebook responded "No" when asked by Meta attorney Mark Hansen if his intent was to eliminate rivals with the purchases of photo sharing app Instagram and messaging service WhatsApp.
Meta chief executive Mark Zuckerberg on Wednesday denied in court that his company bought rival services Instagram and WhatsApp to neutralize them, as his testimony in a landmark antitrust case came to a close.
The case could see the Facebook owner forced to divest itself of the two apps, which have grown into global powerhouses since their buyouts.
During his third and final day on the stand in a federal courtroom in Washington, Zuckerberg took aim at the Federal Trade Commission's main argument -- that Facebook, since renamed Meta, devoured what it saw as competitive threats.
The co-founder of Facebook responded "No" when asked by Meta attorney Mark Hansen if his intent was to eliminate rivals with the purchases of photo sharing app Instagram and messaging service WhatsApp.
He explained that Instagram, purchased in 2012, was attractive for "its camera and photo sharing experience" but added that he "didn't view it as a broad network really competitive with where we were."
As for WhatsApp, bought two years later, Zuckerberg testified that he saw the app as technically impressive but its founders as "unambitious" in terms of "maximizing the impact that they could potentially have."
"I basically ended up pushing to add things," he told the court.
Zuckerberg testified that Facebook put its scale and resources to work building Instagram and WhatsApp into apps now used by billions of people.
Former Meta chief operating officer Sheryl Sandberg testified after Zuckerberg, echoing much of what he told the court.
Meta has had to take on an array of rivals including internet colossus Google as internet competition has become increasingly competitive, according to Sandberg.
"Every time you go on your computer or phone, you have a choice of what you spend your time on," Sandberg said.
"That's what all these producers are competing for: your time and attention."

TikTok as new threat

A key part of the courtroom battle is how the Federal Trade Commission convincingly defines Meta's market for the judge.
The US government argues that Facebook and Instagram are dominant players in apps that provide a way to connect with family and friends, a category that does not include TikTok and YouTube.
Meta's defense attorneys counter that substantial investments transformed these acquisitions into the blockbusters they are today. They also highlight that Meta's apps are free for users and face fierce competition.
The case was originally filed in December 2020, in the last days of President Donald Trump's first administration.
Zuckerberg, the world's third-richest person, has made repeated visits to the White House as he has tried to persuade the president to choose settlement instead of fighting the trial.
As part of his lobbying efforts, Zuckerberg contributed to Trump's inauguration fund and overhauled content moderation policies. 
He also purchased a $23 million mansion in Washington in what was seen as a bid to spend more time close to the center of political power.
Zuckerberg wrapped some 12 hours of testimony on Wednesday with an assessment of TikTok, which he said has emerged as perhaps the biggest competitive threat for Instagram and Facebook.
Meta has seen the growth of its apps slow as the China-based video-snippet sharing sensation has boomed, so the US tech titan added a TikTok-like Reels feature to fire back in the marketplace, according to Zuckerberg.
"That said, TikTok is still bigger than either Facebook or Instagram, and I don't like it when our competitors do better than us," he told the court.
And as video has evolved into a favorite form of online media, particularly on smartphones, YouTube has become serious competition for Meta, the chief executive testified.
es-gc/tgb

Global Edition

US stocks fall with dollar as Powell warns on tariffs

  • But the market dropped much more after Powell warned that Trump's tariffs could put the Federal Reserve in the unenviable position of having to choose between tackling inflation and unemployment.
  • Wall Street traders were back in sell-off mode Wednesday while the dollar fell further as downcast comments from Federal Reserve Chair Jerome Powell added to weakness in semiconductor giant Nvidia.
  • But the market dropped much more after Powell warned that Trump's tariffs could put the Federal Reserve in the unenviable position of having to choose between tackling inflation and unemployment.
Wall Street traders were back in sell-off mode Wednesday while the dollar fell further as downcast comments from Federal Reserve Chair Jerome Powell added to weakness in semiconductor giant Nvidia.
After a relatively peaceful couple of days on markets following tariff-related volatility last week, investors were once again on the defensive. Gold, a safe-haven asset in times of uncertainty, climbed above $3,300 an ounce for the first time.
US equities opened lower, shrugging off solid retail sales data. But the market dropped much more after Powell warned that Trump's tariffs could put the Federal Reserve in the unenviable position of having to choose between tackling inflation and unemployment.
Powell said that while the Fed's employment and inflation goals were largely in balance at this point, policymakers could find themselves in the "challenging scenario" depending on how things evolve.
"Tariffs are highly likely to generate at least a temporary rise in inflation," Powell told the Economic Club of Chicago, warning that the inflationary effects "could also be more persistent."
US stocks hit session lows shortly after Powell's comments before recovering a bit in the final minutes of trading.
The Nasdaq finished down more than three percent.
Nvidia ended down around seven percent after earlier slumping more than 10 percent. The chip company disclosed in a securities filing that it expects a $5.5 billion hit connected to export licenses for technology that the US government determined could be used for a Chinese supercomputer.
Powell's comments "sparked stagflation concerns," said Jack Ablin of Cresset Capital. 
Powell "took what was a moderately down day into a pretty dramatic slide," Ablin added.
The dollar also weakened further after Powell's remarks, retreating about one percent against the euro.
"Markets are increasingly convinced that the US economy is losing steam," said a comment from Forexlive published ahead of Powell's remarks that pointed to market speculation about Fed interest rate cuts.
The battering on Wall Street followed a mixed session in Europe.
London's benchmark FTSE 100 stock index closed 0.3 percent higher, as official data showed UK inflation slowed more than expected in March.
Frankfurt also finished 0.3 percent in the green while Paris fell almost 0.1 percent.
Last week Trump backed off his most onerous "reciprocal" tariffs for every country except China, while maintaining a range of other levies, including on car imports. 
There has been little sign of rapprochement between Washington and Beijing, which has responded with increased levies of its own. 
"Markets continue to suffer from the White House's tariff flip-flopping," said Fawad Razaqzada, market analyst at City Index and Forex.com.
"The stop-start nature of US trade policy this month has made long-term positioning something of a fool's errand, with volatility dominating the landscape."

Key figures at 2050 GMT

New York - Dow: DOWN 1.7 percent at 39,669.39 (close)
New York - S&P 500: DOWN 2.2 percent at 5,275.70 (close)
New York - Nasdaq: DOWN 3.1 percent at 16,307.16 (close)
London - FTSE 100: UP 0.3 percent at 8,275.60 (close)
Paris - CAC 40: DOWN 0.1 percent at 7,329.97 (close)
Frankfurt - DAX: UP 0.3 percent at 21,311.02 (close)
Tokyo - Nikkei 225: DOWN 1.0 percent at 33,920.40 (close)
Hong Kong - Hang Seng Index: DOWN 1.9 percent at 21,056.98 (close)
Shanghai - Composite: UP 0.3 percent at 3,276.00 (close)
Euro/dollar: UP at $1.1395 from $1.1282 on Tuesday
Pound/dollar: UP at $1.3235 from $1.3231
Dollar/yen: DOWN at 142.12 yen from 143.21 yen 
Euro/pound: UP at 86.06 pence from 85.26 pence
Brent North Sea Crude: UP 1.8 percent at $65.85 per barrel
West Texas Intermediate: UP 1.9 percent at $62.47 per barrel
burs-jmb/acb

politics

AMD says US rule on chips to China could cost it $800 mn

  • AMD said in the filing that it "expects to apply for (export) licenses but there is no assurance that licenses will be granted."
  • Chip developer Advanced Micro Devices (AMD) on Wednesday said it expects new US  licensing requirements for semiconductors exported to China to cost it as much as $800 million.
  • AMD said in the filing that it "expects to apply for (export) licenses but there is no assurance that licenses will be granted."
Chip developer Advanced Micro Devices (AMD) on Wednesday said it expects new US  licensing requirements for semiconductors exported to China to cost it as much as $800 million.
The Silicon Valley company's earnings warning, filed with the US Securities and Exchange Commission (SEC), came a day after rival Nvidia notified regulators that it expects a $5.5 billion hit this quarter from licensing requirements on the main chip it can legally sell in China.
Shares in both companies were down by about 7 percent at the close of formal trading on Wednesday.
The new US export control measure applies to MI308 graphics processing units (GPUs) designed for high-performance applications like gaming and artificial intelligence, AMD said.
AMD said in the filing that it "expects to apply for (export) licenses but there is no assurance that licenses will be granted."
The $800 million earnings blow it forecast would come from charges in "inventory, purchase commitments and related reserves," it added.
Wall Street stocks overall tumbled Wednesday as the Federal Reserve chief warned of the drag from President Donald Trump's tariffs, with Nvidia sinking on costs connected to the US-China trade war.
US officials last week told Nvidia it must obtain licenses to export its H20 chips to China because of concerns they may be used in supercomputers there, the Silicon Valley company said in a SEC filing.
The United States had already restricted exports to China of Nvidia's most sophisticated GPUs, tailored for powering top-end artificial intelligence models.
Nvidia was told the licensing requirement on H20 chips would last indefinitely, it said in the filing.
Chief executive Jensen Huang has said publicly that the AI chip powerhouse will balance legal compliance and technological advances under Trump, and that nothing will stop the global advancement of artificial intelligence.
"We'll continue to do that and we'll be able to do that just fine," the Taiwan-born entrepreneur told reporters late last year.
Trump's predecessor Joe Biden restricted Nvidia from selling some of its top AI chips to China, which the United States sees as a strategic competitor in high tech.
gc/tgb

Fed

Trump tariffs could put US Fed in a bind, Powell warns

BY KAMIL KRZACZYNSKI WITH DANIEL AVIS IN WASHINGTON

  • Most economists have warned that tariffs will push up prices -- at least temporarily -- while acting as a drag on growth.
  • US President Donald Trump's tariffs will likely push up prices and constrain growth, and could put the Federal Reserve in the unenviable position of having to choose between tackling inflation and unemployment, the central bank's chair said Wednesday.
  • Most economists have warned that tariffs will push up prices -- at least temporarily -- while acting as a drag on growth.
US President Donald Trump's tariffs will likely push up prices and constrain growth, and could put the Federal Reserve in the unenviable position of having to choose between tackling inflation and unemployment, the central bank's chair said Wednesday.
US financial markets fell following Jerome Powell's remarks, with all three major Wall Street indices ending the day in the red as investors dumped tech stocks. 
"Tariffs are highly likely to generate at least a temporary rise in inflation," Powell told the Economic Club of Chicago, warning that the inflationary effects "could also be more persistent."
"Avoiding that outcome will depend on the size of the effects, on how long it takes for them to pass through fully to prices, and, ultimately, on keeping longer-term inflation expectations well anchored," he added, echoing similar remarks earlier this month. 
Unlike some other central banks, the US Fed has a dual mandate from Congress to ensure both stable prices and maximum sustainable employment over time.
It keeps those twin objectives in balance by lowering or raising interest rates, which act as either a throttle or a brake for demand in the world's largest economy.
Powell said that while the Fed's employment and inflation goals were largely in balance, policymakers could find themselves in the "challenging scenario in which our dual-mandate goals are in tension."

'Continued volatility'

Trump's stop-start tariff policy has unnerved investors and trading partners unsure about the long-term strategy, and what it might mean for international trade. 
Amid the rollout of the tariffs, global financial markets spiraled, pushing volatility to heights not seen since the onset of the Covid-19 pandemic.  
"You'll probably see continued volatility," Powell said Wednesday. "But I wouldn't try to be definitive about exactly what's causing that."
"I would just say markets are orderly and they're functioning kind of as you would expect them to in this time of high uncertainty," he added. 
Most economists have warned that tariffs will push up prices -- at least temporarily -- while acting as a drag on growth.
The Trump administration has insisted that the levies are just one part of an overall economic agenda including tax cuts and deregulation designed to stimulate supply, boost growth, temper inflation, and return manufacturing jobs to the United States.
Tariffs would be "likely to move us away from our goals," Powell said, referring to the Fed's dual mandate.
Futures traders currently see a roughly 85 percent chance that the Fed will vote to pause again at the next interest rate decision in May, according to data from CME Group. 
da/wd

internet

TikTok tests letting users add informative 'Footnotes'

  • "Footnotes will draw on the collective knowledge of the TikTok community by allowing people to add relevant information to content on our platform," Presser said.
  • TikTok on Wednesday said it is testing a feature that would let people add "Footnotes" providing informative context to videos that might be misleading.
  • "Footnotes will draw on the collective knowledge of the TikTok community by allowing people to add relevant information to content on our platform," Presser said.
TikTok on Wednesday said it is testing a feature that would let people add "Footnotes" providing informative context to videos that might be misleading.
The feature being tested in the United States, where the short-form video sharing app has some 170 million users, appears similar to Community Notes on X, formerly Twitter.
Unlike X though, TikTok will continue its own fact-checking program to fight misinformation, head of operations Adam Presser said in a blog post.
"Footnotes will draw on the collective knowledge of the TikTok community by allowing people to add relevant information to content on our platform," Presser said.
"It will add to our suite of measures that help people understand the reliability of content and access authoritative sources, including our content labels, search banners, our fact-checking program, and more."
Adult US users who have been on TikTok for more than six months and haven't violated its community guidelines were invited to apply to contribute to Footnotes.
Contributors will also be able to rate Footnotes left by other people.
Footnotes deemed as "helpful" will be made visible on TikTok, at which point any users can vote on them as feedback regarding their merit, according to Presser.
"Whether the content discusses a complex STEM-related concept, shares statistics that could misrepresent a topic, or updates about an ongoing event, there may be additional context that could help others better understand it," Presser said.
"That's why we're building Footnotes."
Footnotes will augment TikTok's existing integrity measures such as labeling content that can't be verified and partnering with fact-checking organizations such as AFP to assess the accuracy of posts on the platform.
Meta early this year ended its third-party fact-checking program in the United States, with chief executive Mark Zuckerberg saying it had led to "too much censorship."
As an alternative, Zuckerberg said Meta's platforms, Facebook and Instagram, would use "Community Notes," similar to the Elon Musk-owned X.
Community Notes is a crowd-sourced moderation tool that X has promoted as a way for users to add context to posts, but researchers have repeatedly questioned its effectiveness in combating falsehoods.
Supporters of President Donald Trump, among others, have contended without proof that conservative voices were being censored or stifled under the guise of fighting misinformation, a claim professional fact-checkers vehemently reject.
TikTok is adding Footnotes as its China-based parent company ByteDance faces a deadline to sell the app or have it banned in the United States.
Trump has said there was a deal on the sale of TikTok, but tariffs recently imposed by Washington on Beijing derailed it.
ByteDance, while confirming recently that it was in talks with the US government on finding a solution, warned that there remained "key matters" to resolve.
gc/wd

gold

Long-abandoned Welsh mine revived as gold prices soar

BY CLéMENT ZAMPA

  • But thanks to its royal connection, the Welsh gold may attract "traditionalists, people who may be strong monarchists" willing to pay more, Reade added.
  • At the bottom of a long-abandoned mine, 50 metres below the surface, one company searches for rare Welsh gold, attracted by soaring prices and its royal connection.
  • But thanks to its royal connection, the Welsh gold may attract "traditionalists, people who may be strong monarchists" willing to pay more, Reade added.
At the bottom of a long-abandoned mine, 50 metres below the surface, one company searches for rare Welsh gold, attracted by soaring prices and its royal connection.
The Clogau-St David's mine, located in a national park near the coast of Wales, was flooded until its latest licence-holder, Alba Mineral Resources, spent months pumping out water to begin operations.
Down rickety ladders along narrow, damp tunnels, Alba focuses on finding quartz -- a snow-like white rock that indicates the presence of gold.
"The mine up to now has been in exploration phase. We're slowly transitioning" to proper operations, said Mark Austin, the project's chief geologist, who spent four decades working in mines in Africa.
From the depths of the mine, they drill, blast, and haul the ore to the surface.
The first pickaxes struck Clogau in 1854, initially aimed at finding lead, before quickly turning to gold.
Local legend has it that a miner discovered the first flakes by accident after kicking a piece of rock.

Soaring gold price

After six decades of prosperity, the mine shut in 1911, and only occasionally reopened in the years that followed.
At the time of its final shutdown in 1998, gold sold for $300 a troy ounce (31.1 grammes). 
Today, the price of gold has soared beyond $3,000 an ounce -- and hit a new record on Monday, attracting investors seeking a safe-haven asset as US President Donald Trump's stop-start tariffs roil global markets.
"The economics of coming in and finding unworked seams of gold is obviously very attractive," said George Frangeskides, executive chairman of Alba.
"We had an idea that with modern techniques... we could find unworked seams of gold here," he told AFP.
Clogau gold is prized for its scarcity, Welsh heritage and ties to the British royal family, fetching up to 10 times the standard market rate.
Royal family members, including Queen Elizabeth II, King Charles III, Princess Diana and Princess Catherine have all worn a Clogau wedding ring -- a tradition that dates back a century to the wedding of King George VI.
The royal connection "adds, obviously, to the cachet, the allure of the project that we're involved with", Frangeskides told AFP.
Even with limited production -- a few hundred ounces per year -- he believes the venture will be profitable.
The company has invested £4 million ($5.3 million) into the site, where 10 people work.
Early test auctions of one-ounce pieces have been successful, with the first selling for £20,000 ($26,500) -- more than eight times the traded price of gold.

Once-thriving mine

Remaining features, like rusty rails and wooden foundations, serve as reminders of the history of this once-thriving mine.
Austin, donning a hard hat, pointed to the holes in the walls where explosives will be placed to extract tiny gold particles from crushed rocks.
A promising extension to the original quartz vein, around 120-metres long, has been identified in the exploration area measuring 107 square kilometres.
World Gold Council market strategist John Reade said it is not the quality of Clogau gold that attracts its premium price but the fact it is a small, "boutique mine".
Over the course of the mine's history, only 80,000 ounces (2.5 tonnes) of gold have been extracted.
That compares to global gold production of around 3,600 tonnes a year, he said. 
But thanks to its royal connection, the Welsh gold may attract "traditionalists, people who may be strong monarchists" willing to pay more, Reade added.
In the nearby town of Dolgellau, some locals are more concerned with the potential environmental impact than the prospect of gold.
Alba said it has reassured authorities and is committed to protecting bats that live in the area.
At the bustling Cross Keys pub in the town centre, Will Williams, a 75-year-old retired doctor, chuckled: "I wouldn't be surprised if a lot of young people around here don't even know it exists."
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