Connect with us

Business

Euro Surges to Five-Month High Following Trump’s Tariff Announcement

Published

on

The euro reached a nearly five-month high against the US dollar after President Donald Trump announced sweeping reciprocal tariffs, leading to a broad decline in the greenback. Global markets reacted sharply to the news, with stock indices plummeting and bond yields dropping amid growing economic uncertainty.

Following Trump’s announcement on Wednesday night, the euro rose 0.5% against the dollar, reaching 1.0915 at 5:17 am, close to its five-month peak of 1.0953. The surge nearly erased losses suffered since Trump’s re-election on November 5. The US president stated that his administration would impose a minimum 10% tariff on all countries, with additional higher levies targeting key trading partners. China, the European Union, and Vietnam topped the list of affected nations, facing tariffs of 34%, 20%, and 46%, respectively. China’s import duties will rise to 54% when combined with existing blanket tariffs.

The US dollar weakened significantly against major currencies, including the euro, Japanese yen, British pound, and Swiss franc, as investors feared economic repercussions. The yield on 10-year US Treasury bonds fell to its lowest level since October 2024, reflecting expectations of a slowdown. Meanwhile, commodity-linked currencies, such as the Australian and Canadian dollars, declined against the US dollar, as falling crude oil and copper prices weighed on their performance.

Global Markets Tumble

The tariff announcement triggered a broad sell-off in global equities, with stock markets across Asia experiencing significant losses on Thursday. Japan’s Nikkei 225 dropped nearly 3%, China’s Hang Seng Index slid 1.5%, while Australia’s ASX 200 and South Korea’s Kospi declined by 1% each. The selloff extended to mining stocks, with Australia’s BHP falling 2.4% and Rio Tinto dropping 2.8%. Weaker copper prices also pressured European equities, particularly those tied to the commodities sector.

See also  German Carmakers Explore Defence Opportunities as Auto Industry Faces Mounting Pressure

Market analyst Josh Gilbert of eToro noted that while Australia has minimal direct trade exposure to the US, the broader impact on China and other Asian economies could weigh heavily on Australia’s export-driven market. The economic fallout could intensify if global demand slows and commodity prices continue to decline.

In the US, stock futures pointed to a sharp downturn, with the Dow Jones Industrial Average losing 2.01%, the S&P 500 falling 2.78%, and the Nasdaq dropping 3.3% in pre-market trading. European markets were also set to open lower, with Germany’s DAX futures down 1.89% as of 5:30 am CET. Tech stocks, particularly the “Magnificent Seven,” suffered heavy losses in after-hours trading, with Tesla down 4.5%, Apple losing 2.3%, and Nvidia declining 2.4%. Analysts warned that companies with significant exposure to China, such as Apple, could face further pressure in the coming weeks.

Gold Reaches Record High Amid Economic Uncertainty

The heightened risk-off sentiment sent gold prices soaring to a new all-time high, as investors sought safe-haven assets. Gold futures surged to $3,195 per ounce on COMEX, while spot gold touched $3,167 before slightly retreating.

Kyle Rodda, a senior market analyst at Capital.com, warned that uncertainties surrounding Trump’s trade policies could drive further demand for gold. “There was no clear indication that the Trump administration will stop here with ‘trade wars.’ That could mean further uncertainty,” Rodda said.

Gold has been one of the top-performing asset classes, rising 20% this year following a 30% surge in 2024. Factors such as increased central bank purchases, concerns over US dollar depreciation, and investor hedging strategies have contributed to gold’s sustained rally.

See also  Record-Breaking Bluefin Tuna Sells for €2.78 Million at Tokyo New Year Auction

As markets brace for further volatility, traders remain cautious, with attention focused on potential retaliatory measures from affected trading partners and the broader implications for global trade.

 

Business

Chinese Car Brands Gain Ground in Norway Despite Rising Consumer Concerns

Published

on

Chinese-owned car brands are gaining a growing share of Norway’s rapidly expanding electric vehicle market, even as more Norwegian drivers express concerns about buying vehicles from Chinese manufacturers.

Electric cars accounted for 97.8% of new car registrations in Norway during the first eight months of 2026, according to the Norwegian Road Federation. The country remains the world’s leading market for electric vehicle adoption and is far ahead of the European Union, where electric cars represented 21.7% of new registrations between January and August, according to the European Automobile Manufacturers’ Association.

About one in four new electric vehicles registered in Norway this year came from Chinese brands or companies with Chinese ownership. Manufacturers such as BYD, NIO and Dongfeng, along with Chinese-owned brands including Volvo and Polestar, accounted for about 25% of new EV registrations during the first half of the year.

Their presence has expanded rapidly. Chinese brands were almost absent from Norway’s car market in 2019, but have since become one of the largest groups by ownership origin.

A survey conducted by the Norwegian Electric Vehicle Association between March 31 and May 3 found that 31% of nearly 15,000 EV owners questioned would avoid buying a Chinese brand for political reasons. That compared with 23% in the previous year’s survey.

“New cars are, in practice, computers on wheels,” association Secretary General Christina Bu said.

She said greater attention to data security and privacy was making consumers more conscious of where vehicles come from and how information collected by them is handled.

Norwegian security researchers previously found that a vehicle produced by Chinese manufacturer NIO was transmitting data to China. Separate testing of a Yutong bus found that the manufacturer had access to its control system, raising concerns about whether such vehicles could potentially be disabled remotely.

See also  Saudi Arabia Strengthens Global Influence with Major Investments and High-Profile Diplomatic Engagements

Despite these concerns, Chinese-owned manufacturers continue to attract buyers. Bu said consumers consider several factors when purchasing vehicles, including price, technology, data security and ethical concerns.

An earlier association report suggested Chinese-owned brands could overtake European manufacturers in Norway as soon as 2027 if current trends continue.

Chinese manufacturers are also expanding across the EU. Registrations among five groups featuring Chinese brands rose about 71% in August from a year earlier, while their combined share of the new-car market increased from 6.6% to 10.8%.

Leapmotor registrations rose 211%, Chery increased 201%, BYD climbed 129% and Geely Group grew 24%.

Meanwhile, political resistance to Tesla among Norwegian consumers has declined. The survey found that 24% would avoid Tesla for political reasons, down from 43% last year.

Bu attributed the change partly to reduced attention surrounding Tesla chief executive Elon Musk’s political activities. Tesla nevertheless remained Norway’s best-selling new-car brand, with a 17.5% registration share through September 24.

Continue Reading

Business

European Governments Expand Fuel Tax Cuts and Energy Support as Prices Surge

Published

on

European governments are expanding fuel tax cuts, subsidies and energy measures as record petrol and diesel prices increase pressure on households and businesses across the region.

France, Germany and Spain are among the countries introducing or extending support as governments respond to disruptions linked to the wars in the Middle East and Ukraine. The European Union is also facing uncertainty over global diesel supplies amid possible US restrictions on exports.

The Organisation for Economic Co-operation and Development said seven of the 10 countries that have taken the largest number of measures to limit the economic impact of higher energy prices are EU members.

Europe was already facing energy challenges before the conflict involving Iran. Russia’s war in Ukraine disrupted supplies and contributed to sharp movements in European energy markets. The EU imports nearly all of the oil it consumes and about 85% of its natural gas, while imports account for 57% of the bloc’s overall energy needs, according to Eurostat.

Drivers are now facing particularly high diesel costs. Campaign group Transport & Environment estimates that EU motorists are spending an additional €203 million a day on diesel.

EU leaders have given member states temporary flexibility to provide state aid to households and energy-intensive sectors, including agriculture, transport and fishing. Governments have also been given limited flexibility under EU spending rules for investments aimed at strengthening energy security and reducing dependence on imported oil and gas.

European Commission President Ursula von der Leyen said higher energy prices and borrowing costs were putting pressure on households and businesses. She called for greater investment in domestic clean energy, including renewable power, nuclear energy and biomethane.

See also  Trump Administration Presses Court to Allow Removal of Fed Governor Lisa Cook

France has announced a €450 million package expanding assistance for fuel users and energy-intensive businesses. The government said 5.5 million workers who drive more than 30 kilometres on a round trip to work, or more than 8,000 kilometres a year for professional purposes, will qualify for €100 fuel payments through the end of the year.

Fuel subsidies for farmers, fishers and construction companies have also been extended. Energy vouchers ranging from €48 to €277 will be distributed three months earlier than planned to help 5.8 million households meet winter energy costs.

French President Emmanuel Macron has also asked the European Commission to consider relaxing some fuel quality requirements to increase diesel and kerosene production. He has proposed raising the EU limit for conventional biodiesel in standard diesel from 7% to 10%.

Germany has agreed to revive fuel tax cuts that expired at the end of June. From October 1 until the end of December, petrol and diesel prices will be reduced by 17 cents per litre, at a cost of €2.5 billion. Berlin also plans discussions with the oil industry over a possible fuel price cap from January.

Spain has extended fuel tax reductions introduced in March as part of a €5 billion support package. The current reduction is 5 cents per litre, with an automatic increase to 20 cents if annual fuel-price inflation exceeds 15%. Subsidies for transport firms, farmers, livestock producers and fishers have also been extended.

EU countries have also been drawing on strategic oil reserves after International Energy Agency members agreed to release 400 million barrels from emergency stockpiles.

See also  France Faces Mounting Debt Risks Amid Political Uncertainty as Bayrou Prepares Confidence Vote

At the same time, Europe continues to increase renewable energy production and shift industries toward electricity as it seeks to reduce dependence on imported fossil fuels.

Continue Reading

Business

Malta and Cyprus Rank Among Europe’s Most Tax-Friendly Destinations for Relocating Workers

Published

on

Malta and Cyprus have secured places among the world’s 10 highest-ranked tax jurisdictions for people considering moving abroad, while Germany has been placed last in a new global comparison.

The ranking by Global Citizen Solutions (GCS) assesses 48 jurisdictions using 11 indicators grouped into tax burden, tax structure and investment migration. The investment migration category considers options available to people seeking residence or citizenship.

A higher score indicates more favourable conditions for internationally mobile individuals. Tax optimisation refers to the legal arrangement of finances to reduce tax liabilities.

Malta and Cyprus each scored 82 out of 100 for tax burden and 63 for tax structure. Malta received a score of 83 for investment migration, compared with 78 for Cyprus. Malta ranked sixth globally, while Cyprus came 10th.

GCS said the two countries achieved their positions through preferential tax regimes rather than low headline income tax rates. Their systems can provide favourable treatment for certain types of foreign income earned by people relocating to the countries.

Monaco, with a score of 68.6, Georgia at 68.3 and Bulgaria at 62.8, completed the top five European jurisdictions. After those countries, European scores fell below 60, with most placing outside the global top 20.

Germany ranked 48th and scored only 17 for tax structure. GCS identified the taxation of residents’ worldwide income, inheritance tax and exit tax as factors contributing to its position.

Denmark scored 30.4, Spain 36.9, France 37.7 and Norway 38.4. The United Kingdom was the next-lowest European jurisdiction, with a score of 50.9.

Italy recorded the highest score among Europe’s five largest economies at 56.9, placing ninth in Europe and 26th globally. Switzerland scored 58.2, followed by the Netherlands at 51.2. Turkey scored 56.9, Hungary 54.9, Sweden 54.1 and Ireland 53.1.

See also  Judge Rejects Boeing Plea Deal Over 737 Max Crashes, Raising Legal Uncertainty

The separate tax burden measure covers personal income tax, capital gains tax on listed securities, wealth tax and inheritance tax. Monaco led Europe with 93, followed by Bulgaria at 92 and Andorra at 89. Malta and Cyprus both scored 82.

Tax structure focuses on foreign income and taxation affecting people who leave a country. Malta and Cyprus shared the highest European score of 63, while Germany recorded 17.

The report said tax rates and tax structures can operate independently, meaning a country with relatively low taxes may still have less favourable rules for foreign income or people relocating overseas.

Globally, the UAE ranked first with 82.7, followed by Antigua and Barbuda at 82.2, Paraguay at 77.2, Hong Kong at 76.9 and the Bahamas at 76.2.

The report also compared tax scores with quality-of-life rankings. Sweden, Germany, Denmark and Norway ranked highly for quality of life but much lower for tax optimisation.

Seven jurisdictions stood out for combining relatively favourable tax conditions with strong quality-of-life rankings: Malta, Cyprus, Portugal, Switzerland, Uruguay, Costa Rica and Mauritius.

The findings suggest that people considering relocation may assess tax structures alongside public services and wider living conditions, rather than focusing solely on headline tax rates.

Continue Reading

Trending