United News of Bangladesh

China's exports and imports weakened in January and February, with demand slipping amid global trade uncertainty. Exports rose by only 2.3% compared to the previous year, falling short of the 5% growth expected by economists, while imports declined by more than 8%. This slow start to the year comes amid ongoing concerns over U.S. tariffs and other trade policies, reports AP. China’s foreign minister criticizes US tariffs and accuses the country of ‘meeting good with evil’ China’s overall trade surplus increased to $170.52 billion in the first two months of 2025. The country’s customs agency typically releases combined trade data for January and February to avoid distortions caused by the Lunar New Year holidays. Julian Evans-Pritchard from Capital Economics noted that export growth slowed in the first two months of the year, with less demand from tariff front-running than anticipated. He also pointed out that this slowdown occurred before any significant effects from tariffs, which are expected to cause sharp declines in shipments to the U.S. The reduction in imports suggests that the demand boost from government stimulus spending late last year has already begun to reverse, Evans-Pritchard added. This week, U.S. President Donald Trump’s second 10% tariff hike on Chinese imports took effect, which is likely to impact Chinese exports in the coming months. In response, both Chinese suppliers and buyers had rushed to make purchases before the tariff increases. While Chinese officials have criticized the tariff hikes, they remain confident in the resilience of the economy and its ability to offset declines in U.S. exports through trade with other countries. They have also expressed openness to talks based on mutual respect. Exports were a key factor in China meeting its 5% economic growth target last year, and the government has set the same growth target for this year, despite ongoing trade uncertainties. Exports to the U.S. rose by 2.3% year-on-year in January and February, while shipments to the European Union and Japan grew by just 0.6% and 0.7%, respectively. Exports to Russia dropped by 10.9%. The Association of Southeast Asian Nations (ASEAN) remained China’s largest trading partner, with exports growing by 5.7% year-on-year. Global stocks mixed as Trump eases some trade tariffs Lynn Song of ING Economics suggested that although it's premature to draw conclusions from a few months' data, the figures raise questions about future export trends, particularly as U.S. tariffs begin to have an impact. She expects the effects to be gradual in the coming months.

Chinese Foreign Minister Wang Yi said China will continue to retaliate to the United States’ “arbitrary tariffs” and accused Washington of “meeting good with evil” in a press conference Friday on the sidelines of the country’s annual parliamentary session. Wang said China’s efforts to help the U.S. contain its fentanyl crisis have been met with punitive tariffs, which are straining the ties between the countries. “No country should fantasize that it can suppress China and maintain a good relationship with China at the same time,” Wang said. “Such two-faced acts are not good for the stability of bilateral relations or for building mutual trust.” China criticises US tariffs, warns of trade war losses The two countries have been reengaging in tit-for-tat retaliatory tariffs since U.S. President Donald Trump’s return to office in January. The U.S. has imposed flat tariffs of 20% of all Chinese imports, while Beijing has countered with additional 15% duties on U.S. imports including chicken, pork, soy and beef, and expanded controls on doing business with key U.S. companies. Regarding the Trump administration’s policy of safeguarding U.S. interests above international cooperation, Wang said such an approach, if adopted by every country in the world, would result in the “law of the jungle.” ‘If US wants war, we are ready’: China “Small and weak countries will get burnt first, and the international order and rules will be under severe shock,” Wang said. “Major countries should undertake their international obligations … and not seek to profit from and bully the weak.”

European stock markets opened mostly lower, while U.S. futures declined by over 1% on Thursday, following a positive close in most Asian markets, reports AP. Selling pressure emerged after Wall Street’s rally, which was driven by President Donald Trump’s decision to grant U.S. automakers a one-month exemption from his 25% tariffs on imports from Mexico and Canada. This raised hopes that he might avoid triggering a severe trade war that could weaken economies and drive inflation higher. 21 factories shut in 7 months, leaving hundreds unemployed in N’ganj Germany’s DAX increased by 0.5% to 23,194.03, whereas France’s CAC 40 fell by 0.5% to 8,135.30. Meanwhile, Britain’s FTSE 100 dropped by 1% to 8,670.99. Futures for the S&P 500 declined by 1.2%, while those for the Dow Jones Industrial Average fell by 1%. In Asia, Tokyo’s Nikkei 225 climbed 0.8% to 37,704.93. Shares of Japanese automakers surged in U.S. trading, although Toyota Motor Corp.’s stock later slipped by 1% in Tokyo. Honda Motor Corp. advanced by 2%, while Nissan Motor Co. rose by 1.1%. Hong Kong’s Hang Seng index surged by 3.3% to 24,369.71 after reports presented at China’s annual legislative session indicated stronger efforts by Beijing to boost consumer spending and overall domestic demand. The Shanghai Composite index gained 1.2% to reach 3,381.10. South Korea’s Kospi increased by 0.7% to 2,576.16, while Australia’s S&P/ASX 200 slipped by 0.6% to 8,094.70. Taiwan’s Taiex dropped by 0.7%, whereas Bangkok’s SET index declined by 1.4%. On Wednesday, Ford Motor and General Motors stocks contributed to Wall Street’s gains. The S&P 500 rose by 1.1%, the Dow climbed 1.3%, and the Nasdaq composite advanced 1.6%. Trump announced the one-month exemption for U.S. automakers after discussions with Ford, General Motors, and Stellantis, the parent company of Chrysler. The decision provided relief on Wall Street, with both Ford and General Motors seeing their stock prices jump by over 5%, contributing to a broad market rally. However, Trump did not revoke all the tariffs he had imposed on the United States’ largest trading partners, including China. Speaking before Congress on Tuesday night, he confirmed that additional tariffs would still take effect on April 2. BSEC says its officers disrupt operations amid investigation His move has heightened uncertainty in financial markets, which were already shaken after he declared on Monday that negotiations had reached an impasse. The increased tariffs took effect on Tuesday, leading to a sharp drop in U.S. stocks. Regardless of the final outcome, the mere possibility of tariffs has already impacted U.S. households and businesses. Consumer confidence has significantly declined due to concerns that these tariffs will accelerate inflation. Amid policy shifts from Washington, U.S. manufacturers report that their growth is nearing stagnation, with fears over tariffs playing a major role. A recent series of weaker-than-expected U.S. economic reports has raised concerns about a potential worst-case scenario: “stagflation.” This rare condition occurs when the economy stagnates while inflation remains high. Despite the U.S. economy ending the previous year on a solid footing, any slowdown could prompt the Federal Reserve to lower its benchmark interest rate to encourage borrowing and stimulate growth. However, reducing interest rates can also drive inflation higher. If tariffs cause prices of essentials like eggs and other household goods to soar, the Fed could find itself in a difficult position. In early Thursday trading, U.S. benchmark crude oil edged up by 2 cents to $66.33 per barrel, while Brent crude, the global benchmark, also rose by 2 cents to $69.32 per barrel. Meanwhile, the U.S. dollar weakened to 147.90 Japanese yen from 148.89 yen, while the euro dipped slightly to $1.0789 from $1.0790.

The Consumer Financial Protection Bureau is dropping its lawsuit against the company that runs the Zelle payment platform and three U.S. banks as federal agencies continue to pull back on previous enforcement actions now that President Donald Trump is back in office. In December a federal regulator sued JPMorgan Chase, Wells Fargo and Bank of America, claiming the banks failed to protect hundreds of thousands of consumers from rampant fraud on Zelle, in violation of consumer financial laws. In the federal civil complaint, the CFPB asserted that the banks rushed to get the peer-to-peer payments platform to market without effective safeguards against fraud and then, after consumers complained about being defrauded on the service, largely denied them relief. Early Warning Services, a fintech company based in Scottsdale, Arizona, that operates Zelle, was named as a defendant in the lawsuit. EWS is owned by seven U.S. banks, including JPMorgan, Wells Fargo and Bank of America. Those three banks are the largest financial institutions on the Zelle network, accounting for 73% of activity on Zelle in 2023. But a filing in the U.S. District Court for the District of Arizona on Tuesday indicated that the CFPB was dismissing its lawsuit against EWS, Bank of America, JPMorgan Chase and Wells Fargo with prejudice. The dismissal comes less than a week after the CFPB dropped several enforcement actions against companies like Capital One and Rocket Homes. China keeps its economic growth target at 'around 5%' despite a looming trade war In notices of voluntary dismissals that were filed, the CFPB dropped lawsuits it had brought against Capital One, Rocket Homes, Vanderbilt Mortgage and Finance, owned by Warren Buffett’s Berkshire Hathaway, and others. Those suits were all filed under the agency’s previous director, Rohit Chopra, who Trump fired just weeks ago. The CPFB has since plunged into turmoil — with the White House later ordering it to halt nearly all its work. The administration also closed the agency’s headquarters and moved to fire scores of its workers. Trump has defended his administration’s broadside against the CFPB — including recent claims about the agency being “set up to destroy people.” But supporters of the agency stress that it provides crucial oversight and protects consumers from being vulnerable to predatory business practices. The CPFB isn’t the only federal agency to signal a pullback on previous enforcement action under the new administration. The U.S. Securities and Exchange Commission has either closed or paused legal action against several cryptocurrency platforms in recent weeks, as the regulator tries to present itself as more crypto-friendly under Trump. Earlier this month, Binance and the SEC filed a joint motion to pause its high-profile lawsuit against the crypto exchange. And both Coinbase and Robinhood have said that cases against them have also been dismissed or closed, although the SEC declined to immediately comment further.

 China is keeping its economic growth target at “around 5%” for 2025 despite a looming trade war with the United States and other headwinds. The target for GDP growth was announced Wednesday in a report being presented by Premier Li Qiang at the opening session of the National People's Congress, the annual meeting of China's legislature. It reflects the government’s plans to try to stabilize growth in challenging economic times, but stop hold back on more dramatic action to supercharge it. The 32-page report acknowledged the challenges at home and abroad. “An increasingly complex and severe external environment may exert a greater impact on China in areas such as trade, science, and technology,” Li said, reading parts of the report to the Congress over nearly an hour. “Domestically, the foundation for China’s sustained economic recovery and growth is not strong enough. Effective demand is weak, and consumption, in particular, is sluggish.” The IMF has projected China's economy will grow 4.6% this year, down from 5% in 2024, according to Chinese government statistics. The report offered some details on previously announced plans to step up stimulus for the sluggish economy this year. It outlined plans for a “more proactive fiscal policy," including an increase in deficit spending from 3% to 4% of GDP, or the size of the overall economy. Saudi’s oil giant Aramco reports decline in annual profit, cuts dividend It said the government would issue 1.3 trillion yuan ($180 billion) in ultra-long term bonds, up from 1 trillion yuan last year, and that 300 billion yuan in such bonds would go toward a program launched last year that offers rebates to consumers who trade in automobiles or appliances for new ones. Across-the-board tariffs imposed on Chinese products by U.S. President Donald Trump pose the latest threat to an economy already weighed down by a prolonged real estate slump and sluggish consumer spending and private business investment. China’s ruling Communist Party signaled in December that it would boost stimulus this year. The U.S. tariffs have made that task more urgent, because they could crimp sales to one of China’s major export markets. At the same time, Chinese leader Xi Jinping wants to wean the economy off its long-running dependence on the highly indebted real estate market. He is pushing economic resources into developing a more innovative, high-tech economy — and with growing restrictions on U.S. technology exports to China, one that isn't beholden to other countries for the most powerful semiconductors and other electronic components. That has remained the overarching long-term economic goal of the Communist Party, though it has enacted various measures since September in a possible shift in emphasis toward shoring up growth in the short-term. “A target of around 5% is well aligned with our mid- and long-term development goals and underscores our resolve to meet difficulties head-on and strive hard to deliver,” the government report said. The party announced in December that the central bank would shift its monetary policy from “prudent” to “moderately loose" for the first time in more than a decade. Giant chipmaker TSMC to spend $100B to expand chip manufacturing in US, Trump announces The government, following the party's leadership, is expected to borrow more this year, spend more on the consumer rebate program and possibly increase pensions and health care benefits. The question is whether it will be enough to stabilize the economy and reach its target for growth.

Saudi Arabia’s state oil giant, Aramco, has announced a decline in its net profit for 2024, reporting $106.2 billion, down from $121.3 billion in 2023. The company also revealed a significant reduction in its dividend payouts for 2025, expecting total distributions of $85.4 billion, compared to $124.2 billion in 2024. Aramco announces $121 billion profit for 2023, down from 2022 record The oil producer disclosed that its base dividend for the fourth quarter of 2024 would rise to $21.1 billion, while its performance-linked payout would be significantly lower at just $200 million. This marks a steep decline from the previous quarter, when the company had distributed a base dividend of $20.3 billion alongside a performance-linked payout of $10.8 billion. Aramco’s declining profit comes amid falling global oil prices and slowing demand. In 2024, the average price of Brent crude oil stood at $80 per barrel, down by $2 compared to the 2023 average, according to the U.S. Energy Information Administration. Besides, an increase in global crude production put further downward pressure on prices, impacting Aramco’s earnings. Bangladesh to import 1.5mn metric tons of crude oil from Saudi Aramco, UAE’s Adnoc   The company also reported a decline in total revenue, which fell to $436.6 billion in 2024 from $440.8 billion in 2023. This financial performance underscores the challenges faced by the energy sector, as fluctuating oil prices and shifting market dynamics continue to shape the industry’s outlook. Despite the decline, Aramco remains one of the world’s most profitable companies and a key driver of Saudi Arabia’s economy. The company has continued to invest in expansion projects and energy transition initiatives, positioning itself for long-term stability in an evolving energy landscape. Industry analysts will be closely watching Aramco’s strategic decisions in the coming months, particularly regarding its approach to dividends and capital expenditure as it navigates a period of global economic uncertainty. Source: Agencies

Chip giant Taiwan Semiconductor Manufacturing Co. plans to invest $100 billion in the United States, President Donald Trump said Monday, on top of $65 billion in investments the company had previously announced. TSMC, the world’s biggest semiconductor manufacturer, produces chips for companies including Apple, Intel and Nvidia. The company had already begun constructing three plants in Arizona after the Biden administration offered billions in subsidies. Its first factory in Arizona has started mass production of its 4-nanometer chips. Trump, who appeared with TSMC’s chief executive officer C. C. Wei at the White House, called it a “tremendous move” and "a matter of economic security.” “Semiconductors are the backbone of the 21st century economy. And really, without the semiconductors, there is no economy," the president said. "Powering everything from AI to automobiles to advanced manufacturing, we must be able to build the chips and semiconductors that we need right here in American factories with Americans skill and American labor.” Wei said the investment will be for three more chip manufacturing plants, along with two packaging facilities, in Arizona. The $165 billion investment "is going to create thousands of high-paying jobs,” Wei said. Former President Joe Biden in 2022 signed a sweeping $280 billion law, the CHIPS and Science Act, to try to reinvigorate chip manufacturing in the U.S., especially after the COVID-19 pandemic. During the pandemic, chip factories, especially those overseas making the majority of processors, shut down. It had a ripple effect that led to wider problems, such as automobile factory assembly lines shutting down and fueled inflation. Trump has criticized the law and taken a different approach, instead threatening to impose high tariffs on imported chips to bring chip manufacturing back to the U.S. Trump also has said companies like TSMC do not need federal tax incentives. Nvidia sales surge in the fourth quarter on demand for AI chips At the Commerce Department, 40 people who worked on the implementation of the Chips Act were fired Monday as part of the Trump administration’s sweeping moves to cut the size of the federal workforce, according to a person familiar with the move who was not authorized to speak publicly. When asked if the new investment could minimize impact on the U.S. should China either isolate or seize Taiwan, Trump said he couldn’t say “minimize” because “that would be a catastrophic event obviously.” Taiwan is an island that broke away from mainland China in 1949 following a civil war. Beijing claims sovereignty over the island and has ratcheted up military and diplomatic pressure on its leaders. “It will at least give us a position where we have, in this very, very important business, we would have a very big part of it in the United States,” Trump said of the chip manufacturing. He did not say if the investment would provide security for the self-governed island that Beijing considers to be part of Chinese territory. Taipei Economic and Cultural Representative Office, the island’s de-facto embassy in the United States, said investments by Taiwanese businesses in the U.S. have exceeded 40% of the island’s total foreign investments and that the Taiwanese government is “glad” to see Taiwanese businesses to expand investments in the U.S. and to deep cooperation on supply chain between the two sides. “It also brings the economic and trade relations closer,” the office said. Bonnie Glaser, managing director of the Indo-Pacific program at German Marshall Fund of the U.S., said Taipei is hoping the increased investment pledge will help keep the U.S.-Taiwan relationship strong. “Taiwan is evidently stepping up in a way that supports and advanced President Trump’s priorities,” she said. “The US will benefit greatly from TSMC’s investment.” Trump has yet to indicate his stance on U.S. support for Taiwan’s security since he took office, and he has said Taiwan should pay the U.S. for its military defense. Trump has hosted multiple business leaders at the White House since he took office in January to tout a series of investments that aim to demonstrate his leadership is a boon for the U.S. economy. He's also pointed to the tariff threats as prodding the investments. Biden’s semiconductor law to boost US chip output at high cost, says report “It’s the incentive we’ve created. Or the negative incentive,” Trump said. In January, he appeared with the heads of OpenAI, Oracle and SoftBank at the White House as they announced plans for a new partnership to invest up to $500 billion for infrastructure tied to artificial intelligence. He also announced in January a $20 billion investment by DAMAC Properties in the United Arab Emirates to build data centers tied to AI. Last week, after Apple CEO Tim Cook met with Trump at the White House, the company announced plans to invest more than $500 billion in the U.S. over the next four years, including plans for a new server factory in Texas. Trump said after their meeting that Cook promised him Apple's manufacturing would shift from Mexico to the U.S. “I don’t have time to do all of these announcements," Trump joked Monday as he listed some of the other investments. The Wall Street Journal first reported the planned announcement Monday.

Asian markets declined on Tuesday after a sharp drop in U.S. stocks, driven by concerns over the economic impact of President Donald Trump’s latest round of tariffs, reports AP. A 25% tariff on imports from Canada and Mexico took effect early Tuesday, while an additional 10% tariff was imposed on Chinese goods. In response, Beijing signalled through state media that it was considering retaliatory measures, potentially targeting U.S. agricultural exports such as soybeans. Women Entrepreneurs organize 3-day trade fair at Gulshan Shooting Club Japan’s Nikkei 225 fell 1.9% to 37,084.83, while Hong Kong’s Hang Seng index dropped 1.6% to 22,666.68. China’s Shanghai Composite slipped 0.2% to 3,310.35. In South Korea, the Kospi saw a slight gain of less than 0.1% to 2,533.77, while Taiwan’s Taiex declined 0.9%. Most Southeast Asian markets also registered losses. On Monday, the S&P 500 fell 1.8% to 5,849.72 after Trump declared there was “no room left” for negotiations to lower the tariffs, which he had previously delayed for further discussions. The Dow Jones Industrial Average declined 1.5% to 43,191.24, while the Nasdaq composite dropped 2.6% to 18,350.19. Wall Street had hoped for a less severe trade stance, and Trump’s decision came amid growing concerns about the U.S. economy. Monday’s losses trimmed the S&P 500’s post-Election Day gains to just over 1%, down from a peak of more than 6%, as the initial optimism surrounding Trump’s economic policies faded. After the S&P 500 reached a record high last month, driven by stronger-than-expected corporate earnings, sentiment turned negative following weaker economic reports. Recent data showed declining consumer confidence in the face of inflation concerns linked to tariffs. Another economic report on Monday revealed that while U.S. manufacturing activity continued to expand, it did so at a slower pace than expected. More worryingly, new orders contracted while prices rose, sparking concerns over who would bear the costs of Trump’s tariffs. Kroger Chairman and CEO resigns following investigation into personal conduct Following the report, the yield on the 10-year Treasury note fell to 4.16% from 4.24%, continuing its decline from January’s high of nearly 4.80%, reflecting fears of an economic slowdown. Tech stocks, particularly Nvidia and other high-growth companies, bore the brunt of the market downturn. Nvidia plunged 8.8%, while Tesla lost 2.8%. Elsewhere, grocery giant Kroger fell 3% after CEO Rodney McMullen resigned following an internal investigation into his personal conduct. Cryptocurrency-linked stocks also retreated despite an initial rally spurred by Trump’s announcement over the weekend about a strategic crypto reserve. MicroStrategy, which has been investing heavily in bitcoin, ended 1.8% lower, while Coinbase dropped 4.6%. In Europe, markets surged on Monday following a report indicating a slowdown in inflation for February, boosting expectations of an interest rate cut from the European Central Bank later in the week. Germany’s DAX climbed 2.6%, and France’s CAC 40 rose 1.1%. Despite Trump’s “America First” stance, international markets have outperformed the S&P 500 this year. In early Tuesday trading, U.S. benchmark crude oil declined 30 cents to $68.07 per barrel, while Brent crude dropped 51 cents to $71.11 per barrel. The U.S. dollar weakened to 149.29 Japanese yen from 149.50 yen, while the euro edged down to $1.0484 from $1.0488. Bitcoin tumbled 10.3% to $83,750, according to CoinDesk.

Kroger Chairman and CEO Rodney McMullen has resigned after an internal investigation into his personal conduct. One of the largest grocery chains in the country said Monday that the investigation into McMullen's personal conduct was unrelated to the business, but was found to be inconsistent with its business ethics policy. Board member Ronald Sargent will serve as chairman and interim CEO, effective immediately. Sargent has been on Kroger's board since 2006 and has served as the lead director of the company since 2017. He's worked in several roles at the grocery chain across stores, sales, marketing, manufacturing and strategy. Sargent is also the former Chairman and CEO of Staples. Kroger said its board was made aware of the situation on Feb. 21 and immediately hired an outside independent counsel to conduct an investigation, overseen by a special board committee. Uruguay's new leftist president takes office, facing a financial balancing act The company said that McMullen’s conduct is not related to its financial performance, operations or reporting, and did not involve any Kroger associates. Kroger will conduct a search for its next CEO, with Sargent agreeing to remain as interim CEO until someone is appointed to the role permanently. Shares of Kroger, based in Cincinnati, fell about 1.3% before the opening bell.  

Yamandú Orsi, a telegenic left-leaning former mayor and history teacher, took office as Uruguay's new president on Saturday, at the helm of a government that has pledged to strengthen the social safety net while reversing years of economic stagnation. The inauguration of Orsi, 57, marks the return of Uruguay’s Broad Front — a center-left mix of moderates, communists and hardline trade unionists — after a five-year interruption by the country’s outgoing conservative president, Luis Lacalle Pou. Cheers erupted as Orsi recited the oath of office before Congress on Saturday in Uruguay’s capital of Montevideo. Outside the chamber, in the city's main square, thousands of Uruguayans watching his swearing-in on giant screens shouted in support. A civilized race The ceremony came three months after Orsi's presidential victory in a remarkably civilized election race between two moderates, praised as an antidote to the polarization gripping the region. In his speech, he took a dig at growing disillusionment with democratic norms across Latin America, which has resulted in a shift to the right, from neighboring Argentina to El Salvador. “We all know well that we have to treasure our democratic construction in times where exclusionary logic and expressions of distrust in traditional politics proliferate,” Orsi said in his inaugural address before a gathering of domestic and foreign leaders at the legislative palace in Montevideo. He declared: “Let us always be adversaries, but never enemies. And let us distance ourselves as far as possible from cynicism.” The night before the ceremony, Orsi dined in Montevideo with his like-minded regional counterparts, including Brazil's President Luiz Inácio Lula da Silva, Colombia's Gustavo Petro and Chile's Gabriel Boric. The friendly scene cemented Orsi as the latest in the region's swath of allied left-wing leaders — many of whom have struggled in recent years to combat rising inequality and stalling growth. Many Uruguayans saw Orsi as the nostalgia candidate, recalling the Broad Front's 15-year rule between 2005 and 2020. During that time, the coalition presided over a historic cycle of economic growth that reduced poverty and cemented the country's pro-business reputation. The coalition also launched pioneering social reforms that won Uruguay international acclaim, including the legalization of abortion, same-sex marriage and recreational marijuana. Wall Street falls sharply as Nvidia tumbles 8.5% and AI mania falters Problems emerge But in 2020, emerging problems like creeping inequality and surging crime ushered in Lacalle Pou’s center-right government on promises of reforming the bloated state. Last year, public frustration over the persistence of those problems helped bring Lacalle Pou’s tenure to an end, as an anti-incumbent wave swept across the globe. A cautious campaigner, Orsi — the former mayor of Canelones, a beach town known for its cattle ranches and high-tech — vowed to implement “safe change” for Uruguay’s 3.5 million people. Now he faces a difficult balancing act — between satisfying the demands of his more radical leftist constituents, which have called for unwinding some of the previous government's cost-cutting measures, while boosting competitiveness to spur much-needed economic development. “The country needs to recover a path of growth that generates not only a greater quantity but also quality of work,” he said. “That allows a floor of salary dignity and, with it, a better distribution of income.” With a fractious coalition, experts say many of Orsi's positions will become clear only after he takes office and is forced to make hard policy choices. A ‘watch-and-see attitude’ “The business community is taking a watch-and-see attitude until it’s clear whether Orsi is in charge or whether his more aggressive leftist base is in charge,” said Uruguayan economist Arturo C. Porzecanski, a global fellow at the Woodrow Wilson International Center for Scholars. “If Orsi doesn’t come out on top and measures that set the clock back get passed, then that will dim the economic outlook for the coming years." Keeping a tight budget will make it difficult to meet expectations of the unionists that promoted a controversial referendum to increase pensions and reverse the former government’s decision to raise the legal retirement age from 60 to 65. Orsi acknowledged the challenge in his speech, saying: “A lot of dialogue, an outstretched hand and the ability to understand the different sensitivities expressed by our community will be necessary." Nvidia sales surge in the fourth quarter on demand for AI chips Last fall, Uruguayans shot down the proposed pension overhaul. Many praised the vote's outcome as a rare, level-headed rejection of budget-busting populism that has long beset the region. But union leaders — and their supporters, like Orsi’s Communist labor minister — have continued to press their demands, challenging Uruguay's investor-friendly reputation. “The diagnosis is concerning when it comes to workers and their commitment to resolving disputes,” Labor Minister Juan Castillo said last week, as powerful trade unions called a mass strike and multinational Japanese auto-part maker Yazaki shut down operations in Uruguay, citing high labor and production costs.