United News of Bangladesh

China announced retaliatory tariffs on select American imports and an antitrust investigation into Google on Tuesday, just minutes after a sweeping levy on Chinese products imposed by U.S. President Donald Trump took effect. American tariffs on imports from Canada and Mexico were also set to go into effect Tuesday before Trump agreed to a 30-day pause, as the two countries acted to address his concerns about border security and drug trafficking. Trump planned to talk with Chinese President Xi Jinping in the coming days. “It is being scheduled and will happen very soon,” White House Press Secretary Karoline Leavitt said Tuesday. This isn't the first round of tit-for-tat actions between the two countries. China and the U.S. engaged in an escalating trade war in 2018, when Trump repeatedly raised tariffs on Chinese goods and China responded each time. This time, analysts said, China is much better prepared, announcing a slew of measures that go beyond tariffs and cut across different sectors of the U.S. economy. The government is also more wary of upsetting its own fragile and heavily trade-dependent economy. “It’s aiming for finding measures that maximize the impact and also minimize the risk that the Chinese economy may face,” said Gary Ng, a senior economist at Natixis Corporate and Investment Banking in Hong Kong. "At the same time ... China is trying to increase its bargaining chips.” John Gong, a professor at the University of International Business and Economics in Beijing, called the response a "measured” one. “I don’t think they want the trade war escalating,” he said. “And they see this example from Canada and Mexico and probably they are hoping for the same thing.” Counter-tariffs China said it would implement a 15% tariff on coal and liquefied natural gas products as well as a 10% tariff on crude oil, agricultural machinery and large-engine cars imported from the U.S. The tariffs would take effect next Monday. “The U.S.’s unilateral tariff increase seriously violates the rules of the World Trade Organization," China's State Council Tariff Commission said in a statement. "It is not only unhelpful in solving its own problems, but also damages normal economic and trade cooperation between China and the U.S.” The WTO confirmed Tuesday it received notice of China’s request for consultations with the United States regarding the tariffs imposed on Chinese goods. The move sets off a 60-day period for the two sides to resolve their differences, and if not, the case can be brought before a three-judge panel at the Geneva-based trade body. However, the WTO’s dispute-resolution process has been stymied in recent years as multiple U.S. administrations blocked appointments of judges on its appeals court. China reiterates warning of retaliation over US tariffs The impact of China's measures on U.S. exports may be limited. Though the U.S. is the biggest exporter of liquid natural gas globally, it does not export much to China. In 2023, the U.S. exported 173,247 million cubic feet of LNG to China, about 2.3% of its total natural gas exports, according to the U.S. Energy Information Administration. China imported less than 110,000 vehicles from the U.S. last year, though auto market analyst Lei Xing thinks the tariffs will be painful for GM, which is adding the Chevrolet Tahoe and GMC Yukon to its China line-up, and for Ford, which exports the Mustang and F-150 Raptor pickup. The response from China appears calculated and measured, said Stephen Dover, chief market strategist and head of the Franklin Templeton Institute, a financial research firm. However, he said, the world is bracing for further impact. “A risk is that this is the beginning of a tit-for-tat trade war, which could result in lower GDP growth everywhere, higher U.S. inflation, a stronger dollar and upside pressure on U.S. interest rates,” Dover said. Further export controls on critical minerals China announced export controls on several elements critical to the production of modern high-tech products. The measure took effect upon announcement on Tuesday. They include tungsten, tellurium, bismuth, molybdenum and indium, many of which are designated as critical minerals by the U.S. Geological Survey, meaning they are essential to U.S. economic or national security that have supply chains vulnerable to disruption. The export controls are in addition to ones China placed in December on key elements such as gallium. “They have a much more developed export control regime," Philip Luck, an economist at the Center for Strategic and International Studies and former State Department official, said at a panel discussion on Monday. “We depend on them for a lot of critical minerals: gallium, germanium, graphite, a host of others,” he said. "They could put some significant harm on our economy.” Going after Google China’s State Administration for Market Regulation said Tuesday it is investigating Google on suspicion of violating antitrust laws. The announcement did not mention the tariffs but came just minutes after Trump’s 10% tariffs on China were to take effect. It is unclear how the probe will affect Google’s operations. The company has long faced complaints from Chinese smartphone makers over its business practices surrounding the Android operating system, Gong said. Overall, Google has a smaller presence in China than many markets, with its search engine blocked like many other Western platforms. Google exited the Chinese market in 2010, after refusing to comply with censorship requests from the Chinese government and following a series of cyberattacks on the company. Trump imposes tariffs on Canada, Mexico and China, spurring prospect of inflation and trade conflict Google did not immediately comment. Tommy Hilfiger in the crosshairs The Commerce Ministry also placed two American companies on an unreliable entities list: PVH Group, which owns Calvin Klein and Tommy Hilfiger, and Illumina, which is a biotechnology company with offices in China. The listing could bar them from engaging in China-related import or export activities and from making new investments in the country. The ministry says investigations show these two U.S. companies have “disrupted normal business with Chinese companies, taken discriminatory measures against Chinese companies and severely harmed the legitimate rights of Chinese companies” Beijing began investigating PVH Group in September last year over “improper Xinjiang-related behavior” after the company allegedly boycotted the use of Xinjiang cotton. Illumina competes with the Chinese biotech firm BGI in gene-sequencing. In a statement, Illumina said it has a long-standing presence in China and that it complies with all laws and regulations wherever it operates. “We are assessing this announcement with the goal of finding a positive resolution,” the company said. Putting these U.S. companies on the unreliable entities list is “alarming" because it shows that the Chinese government is using the list to pressure U.S. companies to take a side, said George Chen, managing director for The Asia Group, a Washington D.C.-headquartered business policy consultancy. “It's almost like telling American companies, what your government is doing is bad, you need to tell the government that if you add more tariffs or hurt U.S.-China relations at the end of the day it'll backfire on American companies,” Chen said.

Asian stocks rose on Tuesday after President Donald Trump announced a one-month delay in tariffs on Mexico and Canada, reports AP. Markets across Asia showed positive movement. Hong Kong's Hang Seng Index increased by 2.10% to 20,642.58, Japan’s Nikkei 225 gained 1.61% to 39,140.41, South Korea’s Kospi rose by 1.63% to 2,493.99, and Australia’s S&P/ASX 200 inched up 0.13% to 8,390.20. BEPZA signs deal to set up machinery manufacturing industry in EZ The White House also stated that Trump would be speaking with Chinese President Xi Jinping, igniting hopes of a potential deal that could prevent a wider trade war. Last week, Trump imposed a 10% tariff on Chinese goods, which is expected to take effect on Tuesday. Canada confirmed that a deal with the U.S. for a month-long tariff reprieve was reached, but the announcement came only after U.S. markets had closed. Analysts attributed Tuesday's market rally to the tariff delay for countries like Canada and Mexico. Yeap Jun Rong, a market strategist at IG, noted in a report that the pullback in the US dollar and the optimism surrounding tariff relief could help sustain market gains unless unexpected issues arise in US-China trade talks. He also commented that the delay reflects Trump’s willingness to negotiate and could signal that tariffs are being used more as leverage in negotiations rather than fixed policies. On Monday, the S&P 500 dropped by 0.8%, the Dow Jones Industrial Average lost 122 points (0.3%), and the Nasdaq composite fell by 1.2%. U.S. stocks recovered some of their losses after Mexico confirmed a monthlong reprieve from Trump’s tariffs. In energy markets, benchmark U.S. crude oil fell by $0.77 to $72.39 per barrel, while Brent crude, the international standard, declined by 36 cents to $75.60 a barrel. Taskforce on economy puts forward its recommendations The U.S. dollar strengthened slightly, rising from 154.75 yen to 155.13 yen. The euro weakened slightly, dropping to $1.0317 from $1.0345.

Global stocks declined on Monday as concerns mounted over President Donald Trump's decision to impose tariffs on major U.S. trading partners, reports AP. France's CAC 40 fell 1.6% to 7,826.14 in early trading, while Germany's DAX dropped 1.5% to 21,395.31. Britain's FTSE 100 slipped 1.3% to 8,565.00. U.S. markets were also set to open lower, with Dow futures down 1.2% at 44,152.00 and S&P 500 futures falling 1.5% to 5,977.25. US economy grows 2.3% on eve of Trump return In Asia, Japan's benchmark Nikkei 225 declined 2.7%, closing at 38,520.09. Australia's S&P/ASX 200 slid 1.8% to 8,379.40, while South Korea's Kospi lost 2.5% to 2,453.95. Hong Kong's Hang Seng edged down less than 0.1% to 20,217.26. Meanwhile, trading in Shanghai was halted due to a holiday. Analysts noted that Asian markets were bracing for increased volatility amid fears of a potential escalation in the trade war. “The effects of trade restrictions could lead to a decline in global trade volumes, shifts in supply chains resulting in increased business costs, and higher inflation,” said Yeap Jun Rong, a market strategist at IG. Shares of SoftBank Group Corp. advanced 0.5% following its announcement at a Tokyo event with OpenAI that they were establishing SB OpenAI Japan. Each company would hold a 50% stake in the venture, which aims to provide AI services to businesses. Investor sentiment was also shaken by a report from Chinese firm DeepSeek, which claimed to have developed a more cost-effective large language model capable of competing globally. The news raised concerns over whether the anticipated investment in AI chips was justified, leading to declines in some technology stocks. Despite Trump's tariff threats, technology shares in Hong Kong remained relatively stable, bolstered by DeepSeek’s demonstration of China’s technological prowess. Trump’s 25% tariffs on most imports from Canada and Mexico, along with 10% tariffs on Chinese goods, are set to be enforced on Tuesday. His administration has not specified the conditions under which these tariffs might be lifted, particularly regarding efforts to curb illegal immigration and fentanyl smuggling. In response, both Canada and Mexico announced retaliatory tariffs on U.S. products. Canada’s tariffs will take effect on Tuesday, though specific details have yet to be disclosed. Meanwhile, the U.S. Federal Reserve left its benchmark interest rate unchanged last week, adopting a cautious stance on how Trump’s policies might influence inflation and economic stability. Asian stocks rise as DeepSeek panic fades In energy markets, benchmark U.S. crude surged $1.76 to reach $74.29 per barrel, while Brent crude, the global benchmark, gained $1.04 to trade at $76.71 per barrel. In currency trading, the U.S. dollar inched up to 155.41 JPY.

The U.S. economy closed 2024 with solid growth, expanding by 2.3% in the final quarter, driven largely by consumer spending, and ahead of what could be a significant shift in policy under a potential Trump administration, reports AP. The Commerce Department announced that the country’s GDP — the total value of goods and services produced — grew at an annual rate of 2.3% between October and December. For the entire year, the economy grew 2.8%, slightly lower than the 2.9% growth in 2023. Donald Trump's business partner keen to invest in Bangladesh The fourth-quarter growth slightly missed the forecasted 2.4% growth, based on a survey from FactSet. Consumer spending increased at a pace of 4.2%, the fastest since early 2023, up from 3.7% in the third quarter of the year. However, business investment dropped sharply, particularly in equipment after two strong previous quarters. The report also revealed ongoing inflationary pressure at the close of 2024. The Federal Reserve’s preferred inflation measure, the personal consumption expenditures (PCE) index, rose by 2.3% year-on-year in the final quarter, higher than the 1.5% increase in the third quarter, and above the Fed’s target of 2%. Core PCE inflation, which excludes volatile food and energy prices, was 2.5%, up from 2.2% in the previous quarter. A reduction in business inventories lowered the fourth-quarter growth by 0.93 percentage points. However, a category within GDP that measures the economy’s core strength showed a healthy 3.2% annual growth from July to September, although it slightly decreased from the 3.4% rate in the previous quarter. This category includes consumer spending and private investment, excluding more volatile factors like exports, inventories, and government spending. Economist Paul Ashworth of Capital Economics noted that this suggests the economy remains strong, despite disruptions in the fourth quarter such as a Boeing strike and the aftermath of two hurricanes. President Donald Trump is inheriting a resilient economy, with steady growth and low unemployment (4.1% in December). Despite the Federal Reserve’s rate hikes — 11 increases in 2022 and 2023 to combat rising consumer prices — the economy has continued to expand, defying predictions of a recession. GDP growth has exceeded 2% in nine of the past ten quarters. The Federal Reserve left its benchmark interest rate unchanged after three cuts since September. Despite the economy’s strength, Chair Jerome Powell stated there was no urgency to make further cuts, though inflation progress has stalled in recent months after peaking in mid-2022. The European Central Bank, in contrast, lowered its benchmark rate on Thursday, highlighting the difference between robust U.S. growth and stagnation in Europe, where growth was zero at the close of the year. The outlook for the U.S. economy has become more uncertain. Trump has promised tax cuts and business deregulation, which could accelerate growth, but his plans to impose heavy taxes on imports and deport millions of undocumented workers could slow growth and increase costs. Trump also stated he would push for lower oil prices and interest rates, though Powell deflected questions on the matter, stating he had not spoken with the president. Japanese automaker Nissan says it plans job and production cuts in the U.S Trump is also working to reorganise the federal government, offering buyouts to employees and temporarily freezing federal grants, only to reverse this decision following public backlash. Ashworth noted that due to the strain on the federal government, he wouldn’t be surprised to see a slowdown in the first quarter of 2025, with GDP growth expected to fall slightly below 2%. The GDP release on Thursday was the first of three estimates from the Commerce Department for the October-December period.

US President Donald Trump's business partner, Gentry Beach, has expressed interest in investing in mineral and gas exploration in Bangladesh. He conveyed his interest during a meeting with political leaders, an adviser to the interim government, and senior officials of the Bangladesh Investment Development Authority (BIDA) at a hotel in Dhaka on Thursday.  Beach, the family business partner of US President Donald Trump, is on a one-day visit to Bangladesh. As part of the visit, he attended a luncheon at BIDA. Advisers to the interim government and political leaders also participated in it. Asian shares gain after S&P 500 climbs to a record and Bank of Japan raises rate Beach said that he had come to Bangladesh to propose investments in various sectors. He said, "I have come to Bangladesh to make some proposals for investment. We want to invest in the development sector. Along with this, peace and prosperity will also be discussed. With Donald Trump coming to the leadership of America, opportunities have been created for business, trade, and investment in Bangladesh and the whole world, which we want to utilize.” Participating in the luncheon, Jamaat Naib-e-Ameer Syed Abdullah Mohammad Taher said that Gentry Beach has expressed interest in investing in the energy sector. Japan's exports hit record high, but trade deficit continues He said, “To study what investment opportunity facilities are available in Bangladesh for the US, they are mainly interested in minerals, exploration of gas.” Advisor Mahfuz Alam told the meeting that a final decision will be made after detailed discussions between BIDA and Beach on investment-related issues.  

Nissan is slashing production at its U.S. plants and offering buyouts to factory workers there as part of the Japanese automaker’s urgent efforts to return to profitability. The move is part of Nissan Motor Corp.’s plans, announced two months ago, to slash 9,000 jobs globally, including in China, after it racked up a quarterly loss due to sinking sales and ballooning inventory. At Nissan's plant in Smyrna, Tennessee, one production line will maintain two shifts, while the other line will consolidate to one shift, the company said. The Smyrna plant makes Murano, Pathfinder and Rogue sport-utility vehicles and the Infiniti QX60 luxury model. In the Canton plant in Mississippi, which makes the Altima sedan and Frontier pickup, Nissan is reducing the speed on one line and consolidating another. In the Decherd plant in Tennessee, which makes engines, shift adjustments will be more gradual. Some will be maintained while others will be reduced by one shift, it said. When it announced its recovery plan in November, Nissan didn’t give details on where the job cuts might come. Asian stocks rise as DeepSeek panic fades The workforce reduction of 9,000 people amounts to about 6% of its more than 133,000 global employees. The company also plans to slash its global production capacity by 20%. Nissan, based in the port city of Yokohama, said the latest offers count toward its overall job reduction plans, and are designed to make its operations more efficient and flexible. “Nissan is taking urgent measures globally to turnaround its performance and create a leaner, more resilient business capable of swiftly adapting to changes in the market,” the company said in a statement. Separately, Nissan and Japanese rival Honda Motor Co. are working to form a joint holding company to integrate their businesses, planned for 2026. Nissan and Honda announced in March they will work together on electric vehicles. In August, they said that partnership was being broadened. They plan to have a “definitive agreement” by June. Nissan is set to release its October-December financial results on Feb. 13. Nissan stocks jumped 2% in Tokyo trading after the reports about the U.S. plans surfaced.

Asian stocks gained on Wednesday in subdued Lunar New Year trading, following a recovery on Wall Street driven by tech stocks, as concerns over Chinese AI company DeepSeek dissipated, reports AP. Most Asian markets were closed for the holiday. Investors were turning their attention to the Federal Reserve’s upcoming interest rate decision. U.S. futures showed little movement, and oil prices declined. Tech stocks slide as Chinese rival threatens AI industry; Nvidia falls 17%  In Tokyo, the Nikkei 225 index rebounded from Tuesday’s losses, rising 1% to 39,414.78. Australia’s S&P/ASX 200 climbed 0.6% to 8,447.00, following data from the Australian Bureau of Statistics that revealed a 0.2% rise in the Consumer Price Index for the December 2024 quarter, the smallest increase since the June 2020 quarter during the COVID-19 downturn. India's Sensex gained 0.7%, while Thailand’s SET index dropped 0.2%. On Tuesday, tech stocks bounced back after suffering a drop on Monday due to doubts about the sustainability of the AI investment boom. The S&P 500 increased by 0.9% to 6,067.70, recovering more than half of its earlier losses. The Dow Jones Industrial Average added 0.3% to 44,850.35, and the Nasdaq composite surged 2% to 19,733.59 after falling 3.1% the previous day. The focus remained on Nvidia, whose chips are central to the AI boom. The stock rose 8.8% after a nearly 17% drop on Monday, its worst plunge since the 2020 COVID crash. Other AI-related companies also saw steadier performance, including Broadcom, which rose 2.6%. Constellation Energy gained 1.4% after a sharp 21% drop on Monday. The company had earlier surged due to expectations it would supply electricity to the growing AI data center industry. Asian shares gain after S&P 500 climbs to a record and Bank of Japan raises rate These revenue prospects were threatened when DeepSeek, a Chinese firm, claimed to have developed a large language model that can compete with U.S. rivals at a much lower cost. This raised doubts about the future demand for AI chips and electricity. AI-related stocks had been Wall Street’s biggest performers in recent years, driven by the belief that AI spending would continue to rise. However, concerns have emerged that stock prices may have risen too quickly. The impact of DeepSeek’s development on the AI industry remains unclear. While it could reduce growth in demand for data centers, electricity, and chips, it may stimulate growth in other sectors. Later this week, major companies such as Apple, Meta Platforms, Microsoft, and Tesla are expected to report their earnings. A U.S. report showing weaker-than-expected consumer confidence had minimal impact on the bond market. The key event of the day was the Federal Reserve’s interest rate decision, which is expected to leave the federal funds rate unchanged. If this holds, it would mark the first meeting since September without a rate cut aimed at stimulating the economy. On Wednesday, U.S. benchmark crude oil fell by 8 cents to $73.69 per barrel. Brent crude, the international standard, lost 12 cents, to $76.37 per barrel. In currency markets, the U.S. dollar dropped to 155.21 Japanese yen from 155.53 yen. The euro was valued at $1.0437, up from $1.0432.

Wall Street’s tech giants faced sharp declines on Monday amid concerns over a Chinese competitor potentially disrupting the booming artificial intelligence (AI) sector.  The S&P 500 dropped 1.7% in afternoon trading, on course for its steepest loss in over a month. Tech-heavy Nasdaq Composite took a significant hit, falling 3.2%, as major technology stocks suffered. Nvidia led the slide, plummeting 16%, AP reports.  In contrast, industries outside the AI sector showed resilience. The Dow Jones Industrial Average rose by 137 points, or 0.3%, at 12:42 pm Eastern Time. The Dow's smaller exposure to tech helped cushion its performance compared to the S&P 500 and Nasdaq.  Chinese challenger DeepSeek shakes AI market  The market turbulence stemmed from China, where a company named DeepSeek announced the development of a large language model rivaling US tech leaders at a fraction of the cost. DeepSeek's app reached the top spot among free apps on Apple’s App Store by Monday morning, a feat considered remarkable given US restrictions on China’s access to advanced AI chips.  Despite the buzz, skepticism remains over DeepSeek's ability to significantly disrupt the AI ecosystem. Questions persist about how it may have bypassed US chip export restrictions and what hardware it used to develop its model.  Asian shares gain after S&P 500 climbs to a record and Bank of Japan raises rate Dan Ives, an analyst at Wedbush Securities, remarked, “It remains to be seen if DeepSeek found a way to work around these chip restriction rules and what chips they ultimately used. There will be many skeptics around this issue, especially given the information is coming from China.”  The ripple effects of DeepSeek's announcement were felt across global markets. In Amsterdam, Dutch chipmaking equipment producer ASML saw a 7% decline, while in Tokyo, SoftBank Group Corp slid 8.3%. SoftBank's drop follows its recent partnership announcement, backed by the White House, to invest up to $500 billion in AI infrastructure.  On Wall Street, shares of Constellation Energy plunged 19.3%. The company had planned to restart the dormant Three Mile Island nuclear power plant to provide energy for data centres operated by Microsoft.  Investors sought safer alternatives amid the market volatility, leading to a rally in bonds. The yield on the 10-year Treasury note fell from 4.62% late Friday to 4.54% on Monday.  The AI sector, previously a major driver of market growth, experienced a sharp reversal. Companies such as Nvidia, which saw its stock skyrocket from under $20 to over $140 within two years, bore the brunt of the sell-off.  Other leading tech firms, often referred to as the "Magnificent Seven" — Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla — have collectively dominated the market. They accounted for over half of the S&P 500’s total returns last year, according to S&P Dow Jones Indices.  The heavy reliance on a few tech giants has heightened the market's "concentration risk," experts say. Brian Jacobsen, chief economist at Annex Wealth Management, warned, “This can feel good when those few names are on the ascent, but it is even more dangerous when disruptions take place.”  However, Jacobsen urged against overreacting to Monday’s sell-off. “It’s possible the news out of China is overstated, and we could see a reversal. Even if true, it could present new investment opportunities,” he added.  US stocks hover near records during quiet Thursday The market's next moves may depend on upcoming earnings reports from major players, including Apple, Meta Platforms, Microsoft, and Tesla. These companies are scheduled to disclose their fourth-quarter results later this week.  Pressure remains on corporations to deliver robust profits, especially as rising Treasury yields have made bonds more attractive. Higher bond yields often weigh on stock prices by increasing the opportunity cost of investing in equities.  So far, corporate earnings have generally exceeded expectations. AT&T’s shares rose 6% on Monday after the company reported better-than-anticipated results.  Outside the US, market responses were less dramatic. European indexes saw modest declines, with France’s CAC 40 dipping 0.3% and Germany’s DAX losing 0.5%.  In Asia, China’s Shanghai Composite edged 0.1% lower after a survey revealed a five-month low in export orders for Chinese manufacturers.  Later this week, the Federal Reserve will convene its latest policy meeting. Recent economic data suggest the Fed is unlikely to cut interest rates, with traders widely expecting it to hold steady.   

Asian shares advanced Friday after U.S. stocks rose to a record and the Bank of Japan raised its key lending rate. U.S. futures edged lower and oil prices fell after U.S. President Donald Trump called on oil-producing countries to reduce the price of crude, which would ease worries about inflation. Markets showed little obvious reaction to Trump's most recent comments about imposing higher tariffs on products from China and other countries. Tokyo's Nikkei 225 index gained 0.3% to 40,074.87 after the central bank raised its benchmark rate to about 0.5% from 0.25%, as widely expected. It is the highest level for the rate since 2008, as the Bank of Japan shifts out of a long spell of extreme low interest rates meant to spur more borrowing and spending. Just before the decision, statistics from the government showed the core inflation rate increased to 3% year-on-year in December, reaching the highest level in 16 months and was above the central bank’s 2% target. The dollar dropped against the Japanese yen, trading at 155.24 yen, down from 156.06 yen. The Hang Seng in Hong Kong added 1.8% to 20,057.46 and the Shanghai Composite index rose 0.7% to 3,253.79. In South Korea, the Kospi gained 0.6% to 2,530.56. Australia’s S&P/ASX 200 advanced 0.4% to 8,408.30. Read: Asian shares mixed as Big Tech drops affect Wall Street On Thursday, the S&P 500 climbed 0.5% to 6,118.71, surpassing its record set early last month. It was the seventh gain in eight days for the main measure of Wall Street’s health. The Dow Jones Industrial Average piled on 0.9% to 44,565.07, while the Nasdaq composite added 0.2% to 20,053.68. The gains came amid relatively calm moves for Treasury yields in the U.S. bond market. Big swings there in recent months have been shaking the stock market, particularly when rising worries about inflation and the U.S. government’s heavy debt send Treasury yields higher. Treasury yields took a brief turn upward after President Donald Trump began talking about the prospect of tariffs in a speech by video at the World Economic Forum, saying products made outside of the United States will be subject to a tariff, but they pulled back after he gave few details. The yield on the 10-year Treasury climbed to 4.64% from 4.61% late Wednesday, though it remains below its high from earlier this month. The two-year Treasury yield eased to 4.29% from 4.30% late Wednesday. Yields earlier in the day had held relatively steady after a report showed slightly more U.S. workers applied for unemployment benefits last week than economists expected. While the numbers increased, “they were well within the modest range established in recent months,” according to Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley. “Employment continues to highlight US economic outperformance.” Traders don’t expect the report to push the Federal Reserve to cut its main interest rate at its upcoming meeting next week, according to data from CME Group. If they’re correct, it would be the first meeting since September where the Fed hasn’t lowered the federal funds rate to take pressure off the U.S. economy. Lower rates can goose prices for investments, but they can also give inflation more fuel. In the cryptocurrency market, where prices have surged on hopes President Donald Trump will make Washington friendlier to the industry, bitcoin fell below $103,000, according to CoinDesk. It had set a record above $109,000 on Monday. Read more: Asian shares decline amid concerns over rate cuts and tariffs In other dealings early Friday, U.S. benchmark crude oil shed 13 cents to $74.49 per barrel. Brent crude, the international standard, lost 13 cents to $78.16 per barrel. The euro rose to $1.0449 from $1.0416.

US stocks are hovering near record levels on Thursday amid a relatively uneventful day on Wall Street, reports AP. The S&P 500 rose 0.2% in midday trading, poised to surpass its all-time high set last month after nearing it the previous day. As of 11:30 a.m. Eastern time, the Dow Jones Industrial Average was up 236 points, or 0.2%, while the Nasdaq composite slipped by 0.2%. Japan's exports hit record high, but trade deficit continues Global markets showed similarly subdued activity, despite China’s latest efforts to boost stock prices in the world’s second-largest economy. For instance, Hong Kong stocks briefly gained after China directed pensions and mutual funds to increase investments in domestic equities. However, the Hang Seng index ended down 0.4%. This relative calm extended to the U.S. bond market, where Treasury yields were mixed. Recent sharp movements in bond yields have impacted stocks, particularly when inflation concerns and high U.S. debt levels drove yields higher. However, bond investors took the latest economic data in stride. Asian shares show mixed performance following Trump inauguration The data revealed that slightly more Americans applied for unemployment benefits last week than economists anticipated, but the figures remained within the modest range observed in recent months, according to Chris Larkin, managing director of trading and investing at E-Trade from Morgan Stanley. “Employment continues to underscore U.S. economic outperformance,” he added. Traders largely believe the report won’t compel the Federal Reserve to adjust its main interest rate during next week’s meeting, based on CME Group data. If this holds true, it will mark the first time the Fed has refrained from lowering rates since September, when it began easing them to support the economy. While lower rates can boost investment prices, they may also fuel inflation. Treasury yields briefly rose after President Donald Trump discussed potential tariffs at the World Economic Forum, but quickly retreated as details were sparse. A major global concern has been the potential disruption to trade if Trump imposes significant tariffs. China's economy grows 5% in 2024 The yield on the 10-year Treasury increased to 4.63% from 4.61% late Wednesday, remaining below its earlier monthly peak. Meanwhile, the two-year Treasury yield, which reflects expectations for Fed actions, dipped to 4.28% from 4.30%. On Wall Street, GE Aerospace surged 6.8% following a stronger-than-expected quarterly profit report. Orders for its airplane engines and services rose by 50% year-over-year to $12.9 billion. Netflix was another major contributor to the S&P 500’s gains, climbing 2.4% after a 9.7% jump the day before due to an upbeat earnings report. Conversely, American Airlines fell 7.9% despite surpassing profit and revenue expectations for the latest quarter. The airline warned it might post a larger-than-expected loss in early 2025 and provided a full-year profit forecast with a midpoint below analysts’ predictions. Video game maker Electronic Arts plunged 18.2% after forecasting slower revenue growth for its soccer game, EA Sports FC25. It also reported lower-than-expected engagement for its Dragon Age game, further impacting revenue. In international markets, Japan’s Nikkei 225 rose 0.8%, despite a sharp decline for Fuji Media Holdings. This followed the announcement that Masahiro Nakai, a prominent TV host and former pop star, would retire over sexual assault allegations, which have shaken Japan’s entertainment industry. The controversy caused a wave of lost advertising at one of the networks he worked for. In the cryptocurrency market, bitcoin traded just below $105,000, according to CoinDesk, after setting a record above $109,000 on Monday. Prices have surged on speculation that President Donald Trump will adopt a more favourable stance toward the industry.