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By Hyunjoo Jin and Jack Kim SEOUL (Reuters) -China's sanctions on U.S.-linked units of shipbuilder Hanwha Ocean threaten to impact ambitious plans for shipbuilding cooperation between Seoul and Washington by disrupting supplies of Chinese equipment and materials, officials in Seoul said on Friday. Beijing announced the sanctions on Tuesday as the U.S. and China began charging additional port fees on each other's vessels, in the latest exchange in a protracted trade war ahead of a planned meeting of the two countries' leaders. South Korea has vowed to "Make America Shipbuilding Great Again" with a pledge of $150 billion of investment in the sector to help U.S. President Donald Trump's push to revitalise American shipbuilding to catch up with China's. The decline of the U.S. shipbuilding sector and the industries needed to support it made it impossible to supply materials and parts from within the U.S., officials in Seoul said. "There is bound to be an impact," South Korea's Minister of Defense Procurement Program Administration Seok Jong-gun said. "I don't see how we can make all the materials and supplies for Philly Shipyard within the U.S.," Seok said in a parliamentary hearing on Friday. "So if you're going to get a lot of things to the U.S. from South Korea, and you have sanctions and all kinds of obstacles to doing that, I'd say there's going to be an impact on MASGA eventually." Hanwha also runs a shipyard in China's eastern province of Shandong that builds modules of ship components, a company filing showed. It supplies the modules to its shipyard in South Korea for final assembly, according to the firm. While analysts said the Chinese sanctions would not have an immediate impact, they may be a harbinger of tougher Chinese actions that could hit South Korean shipbuilders cooperating with the United States. 'NOT SIMPLY A TRADE ISSUE' South Korean lawmaker Yu Yong-weon estimated the Chinese sanctions would cost Philly Shipyard $60 million over the next two years. Yu did not give a breakdown of the estimate but cited likely disruptions of supplies to the shipyard and delayed delivery of vessels. "This is not simply a trade issue but a grave matter that affects our economic security and industrial supremacy," said Yu, adding he visited the shipyard last month. Hanwha Ocean declined to comment on the lawmaker's estimate on losses, but a statement from Hanwha USA, a subsidiary, said it was reviewing the details of the Chinese announcement and added: "Hanwha will continue to provide world-class maritime services to our customers, including through our investments in the U.S. maritime industry and via Hanwha Philly Shipyard." Philly Shipyard, in Philadelphia, was bought by Hanwha last year and is one of five subsidiaries in the U.S. hit by the new Chinese sanctions. Hanwha's South Korean competitors, HD Hyundai and Samsung Heavy Industries, are eyeing projects envisioned for rebuilding U.S. maritime capabilities including work to build and maintain navy vessels. Earlier on Friday, the U.S. State Department criticised the Chinese sanctions as an "irresponsible" act that interferes with a private company's operations and undermines South Korea-U.S. cooperation on revitalising U.S. shipbuilding and manufacturing. "China's actions … are the latest example in a long pattern of China's attempts to coerce (South) Korea," a spokesperson said in a statement to Reuters. China's Commerce Ministry banned transactions and cooperation with Hanwha Ocean's U.S.-linked units, citing security risks stemming from what it said was their involvement in the U.S. government's "relevant investigative activities". South Korea's investment plan in the U.S. shipbuilding industry is the most concrete of pledges made to support a trade deal aimed at cutting U.S. duties on South Korean goods. (Reporting by Hyunjoo Jin, Jack Kim and Heejin in Seoul and David Brunnstrom in Washington; Editing by Chris Reese, Ed Davies, Muralikumar Anantharaman and Edmund Klamann)

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By Manya Saini (Reuters) -Jefferies was defrauded by bankrupt auto parts maker First Brands Group, its CEO Rich Handler said at its investor day held on Thursday. His comment comes against the backdrop of several financial firms alleging fraud, while the U.S. Department of Justice is also probing the company. "I'll just say this is us personally, we believe we were defrauded," Handler said according a regulatory filing released on Friday, adding that despite this the environment remains generally good. The collapse of First Brands and subprime lender and dealership Tricolor have unsettled Wall Street's multitrillion-dollar credit market, which includes leveraged loans, collateralized loan obligations, trade-finance funds and subprime auto loans. "I'm not saying there aren't other issues like this… I think there's a fight going on right now between the banks and direct lenders who each want to point fingers at each other and say, it's your fault, no, it's your fault," Handler told analysts and investors. Jefferies' stock slumped after First Brands disclosed more than $10 billion in liabilities in bankruptcy protection filing in late September. "The stock is down on 'atmospheric' credit concerns because credit managers, BDCs (Business Development Companies), and numerous banks have all been under pressure, for reasons we consider dubious," Oppenheimer analysts said in a note. The bank's shares regained some lost ground on Friday, rising 5% after a steep selloff in the previous session. The broader market saw ripples of the credit fears in European and Asian trading before the U.S. banking sector rebounded in New York on strong earnings. FIRST BRANDS FUND SEPARATION Jefferies President Brian Friedman said the fund caught up in the collapse of First Brands is separate from its investment banking business. "Kind of Chinese Wall 101. Nothing more to be said," he said. "The two have absolutely no relationship and, in fact the decision in 2019 of the asset management Point Bonita team to engage with First Brands, was absolutely away from independent and disconnected from anything on the investment banking side." "We've estimated the firm's direct exposure to the First Brands fallout to be relatively small, after recoveries – comfortably under $100 million," Morningstar analyst Sean Dunlop said. Earlier this month, Jefferies had said its exposure to First Brands is limited and any potential loss would be "readily absorbable".  The bank had called the share reaction overdone while disclosing that its Leucadia Asset Management fund holds about $715 million in receivables linked to First Brands. On Thursday, shares of U.S. regional bank had slumped after Zions Bancorporation disclosed a $50 million charge-off in the third quarter, while Western Alliance initiated a lawsuit against a borrower, alleging fraud. (Reporting by Manya Saini in Bengaluru; Editing by Arun Koyyur)

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By Ateev Bhandari and Saeed Azhar (Reuters) -Huntington Bancshares reported a rise in its third-quarter profit on Friday, as the regional U.S. lender benefited from increased interest income and fees across all divisions. Shares of the Columbus, Ohio-based bank were up 1.2% in late afternoon trading. The results come amid renewed scrutiny of U.S. banks' credit quality after two auto-industry bankruptcies and revelations of credit fraud, which have dragged lender stocks lower in recent weeks. Provision for credit losses was $122 million for the three months ended September 30, up from $106 million a year earlier. Its net interest income – the difference between what a bank earns as interest on loans and pays out on deposits – jumped 11% to $1.51 billion during the period, reflecting lower funding costs.  The Federal Reserve cut interest rates last month for the first time this year, providing lenders and borrowers relief on the cost of capital. Huntington's results mirror those of peers Citizens and PNC Financial, whose profits also jumped on higher interest income.  Noninterest income climbed 20% from a year ago, led by a 21% jump in capital markets and advisory fees as dealmaking made a triumphant comeback during the quarter when markets hit multiple record highs. Customer deposit and loan fees rose 19% to $102 million, benefiting from higher loan commitment fees.  "We came into this year's thinking that loans would grow about 5%, our latest outlook is 8%. We thought deposits would grow in the low single digits and we're seeing almost 6% growth," Huntington CFO Zach Wasserman said. Huntington in July agreed to buy Texas-based smaller rival Veritex Holdings, in a $1.9 billion all-stock deal, as it looks to expand its presence in the state that is fast emerging as a major financial hub. "We are closing the Veritex deal upcoming Monday – a springboard for additional growth in Texas," he said. When asked if they are looking for more targets, Wasserman said: "If we can find another organization that wants to be our partner and is a good cultural fit and a good strategic fit, and of course the financials of an acquisition makes sense, then maybe." "But generally speaking we are focused on what we can control and that is organic growth." Net income attributable to the bank rose to $629 million, or 41 cents per share, from $517 million, or 33 cents per share, a year earlier. Huntington's stock is down more than 5.5% year to date, compared with a 6.4% decline in the KBW Regional Banking index.  (Reporting by Ateev Bhandari in Bengaluru and Saeed Azhar in New York; Editing by Tasim Zahid and Lisa Shumaker)

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By Doina Chiacu and Andrea Shalal WASHINGTON (Reuters) – U.S. Treasury Secretary Scott Bessent said on Friday he expects to meet next week with Chinese Vice Premier He Lifeng in Malaysia to try to forestall an escalation of U.S. tariffs on Chinese goods that President Donald Trump said was unsustainable. Bessent made the announcement during a White House cabinet meeting and later confirmed plans for a meeting after a call with He on Friday evening. Bessent said on X the two officials "engaged in frank and detailed discussions regarding trade between the United States and China." "We will meet in-person next week to continue our discussions," Bessent wrote. China state news agency Xinhua reported that He and Bessent had "candid, in-depth, and constructive discussions on major issues in bilateral economic and trade relations" in a video call, and agreed to a new round of trade talks as soon as possible. The two officials previously met in four European cities over six months to hammer out a tariff truce that brought duties down from triple-digit levels for each country. That agreement expires on November 10. A meeting in Malaysia would shift the venue to a Southeast Asian exporter that trades heavily with both China and the U.S. and whose goods are now subject to a 19% duty imposed by Trump. Malaysia also faces a threatened 100% U.S. tariff on its semiconductors and derivative electronics devices under a national security trade review. Trump earlier on Friday blamed Beijing for the latest impasse, a dispute over China's sweeping new export restrictions on rare-earth minerals and magnets. He has threatened an additional 100% tariff on Chinese imports starting on November 1 unless Beijing scraps the restrictions. Asked whether such a high tariff was sustainable and what that might do to the U.S. economy, Trump replied: "It's not sustainable, but that's what the number is." "They forced me to do that," he said in an interview with Fox Business Network that was broadcast on Friday. Trump also has threatened to impose new U.S. export controls that would halt supplies of "any and all critical software." The new trade actions were Trump's reaction to China dramatically expanding its export controls on rare-earth elements. China dominates the market for such elements, which are essential to tech manufacturing. Bessent and U.S. Trade Representative Jamieson Greer on Wednesday blasted the restrictions as a threat to global supply chains. Trump also confirmed he would meet with Chinese President Xi Jinping in two weeks in South Korea and expressed admiration for the Chinese leader. "I think we're going to be fine with China, but we have to have a fair deal. It's got to be fair," Trump said on FBN's "Mornings with Maria," which was taped on Thursday. Later, as he was preparing to have lunch at the White House with Ukrainian President Volodymyr Zelenskiy to discuss efforts to end its war with Russia, Trump said: "China wants to talk, and we like talking to China." The softening in tone and affirmation of his intent to meet with Xi helped stem Wall Street's early losses on Friday. Major U.S. stock indexes, which have been rattled over the last week by Trump's abrupt re-imposition of steep levies on Chinese imports and by credit worries among regional banks, were up in afternoon trading. WTO URGES DE-ESCALATION OF TRADE SPATS The head of the World Trade Organization urged the U.S. and China to de-escalate trade tensions, warning that a decoupling by the world's two largest economies could reduce global economic output by 7% over the longer term. WTO Director-General Ngozi Okonjo-Iweala told Reuters in an interview the global trade body was extremely concerned about the latest spike in U.S.-China trade tensions and had spoken with officials from both countries to encourage more dialogue. But tensions continued to run high, even as Trump and Xi prepared to meet. Bessent took aim at China's state-driven economic practices in a statement to the IMF's steering committee on Friday, urging the IMF and World Bank to take a tougher stance on China's external and internal imbalances and industrial policies that U.S. officials say have helped China build up excess manufacturing capacity that is flooding the world with cheap goods. And China's Commerce Ministry on Friday accused the U.S. of undermining the rules-based multilateral trading system since the Trump administration took office in 2025, vowing to intensify its use of dispute settlement actions at the WTO. It also urged the U.S. to roll back measures that breach non-discrimination rules and align its industrial and security policies with WTO obligations. Bessent earlier in the week had accused one of He's top aides of being "unhinged" in recent interactions with U.S. trade negotiators. China said on Friday that Bessent's remarks "seriously distort the facts." (Reporting by Doina Chiacu, Andrea Shalal, Susan Heavey and David Lawder; Editing by William Maclean, Paul Simao, Andrea Ricci and Tom Hogue)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Doina Chiacu and Andrea Shalal WASHINGTON (Reuters) – U.S. Treasury Secretary Scott Bessent said on Friday he expects to meet next week with Chinese Vice Premier He Lifeng in Malaysia to try to forestall an escalation of U.S. tariffs on Chinese goods that President Donald Trump said was unsustainable. Bessent made the announcement during a White House cabinet meeting and later confirmed plans for a meeting after a call with He on Friday evening. Bessent said on X the two officials "engaged in frank and detailed discussions regarding trade between the United States and China." "We will meet in-person next week to continue our discussions," Bessent wrote. China state news agency Xinhua reported that He and Bessent had "candid, in-depth, and constructive discussions on major issues in bilateral economic and trade relations" in a video call, and agreed to a new round of trade talks as soon as possible. The two officials previously met in four European cities over six months to hammer out a tariff truce that brought duties down from triple-digit levels for each country. That agreement expires on November 10. A meeting in Malaysia would shift the venue to a Southeast Asian exporter that trades heavily with both China and the U.S. and whose goods are now subject to a 19% duty imposed by Trump. Malaysia also faces a threatened 100% U.S. tariff on its semiconductors and derivative electronics devices under a national security trade review. Trump earlier on Friday blamed Beijing for the latest impasse, a dispute over China's sweeping new export restrictions on rare-earth minerals and magnets. He has threatened an additional 100% tariff on Chinese imports starting on November 1 unless Beijing scraps the restrictions. Asked whether such a high tariff was sustainable and what that might do to the U.S. economy, Trump replied: "It's not sustainable, but that's what the number is." "They forced me to do that," he said in an interview with Fox Business Network that was broadcast on Friday. Trump also has threatened to impose new U.S. export controls that would halt supplies of "any and all critical software." The new trade actions were Trump's reaction to China dramatically expanding its export controls on rare-earth elements. China dominates the market for such elements, which are essential to tech manufacturing. Bessent and U.S. Trade Representative Jamieson Greer on Wednesday blasted the restrictions as a threat to global supply chains. Trump also confirmed he would meet with Chinese President Xi Jinping in two weeks in South Korea and expressed admiration for the Chinese leader. "I think we're going to be fine with China, but we have to have a fair deal. It's got to be fair," Trump said on FBN's "Mornings with Maria," which was taped on Thursday. Later, as he was preparing to have lunch at the White House with Ukrainian President Volodymyr Zelenskiy to discuss efforts to end its war with Russia, Trump said: "China wants to talk, and we like talking to China." The softening in tone and affirmation of his intent to meet with Xi helped stem Wall Street's early losses on Friday. Major U.S. stock indexes, which have been rattled over the last week by Trump's abrupt re-imposition of steep levies on Chinese imports and by credit worries among regional banks, were up in afternoon trading. WTO URGES DE-ESCALATION OF TRADE SPATS The head of the World Trade Organization urged the U.S. and China to de-escalate trade tensions, warning that a decoupling by the world's two largest economies could reduce global economic output by 7% over the longer term. WTO Director-General Ngozi Okonjo-Iweala told Reuters in an interview the global trade body was extremely concerned about the latest spike in U.S.-China trade tensions and had spoken with officials from both countries to encourage more dialogue. But tensions continued to run high, even as Trump and Xi prepared to meet. Bessent took aim at China's state-driven economic practices in a statement to the IMF's steering committee on Friday, urging the IMF and World Bank to take a tougher stance on China's external and internal imbalances and industrial policies that U.S. officials say have helped China build up excess manufacturing capacity that is flooding the world with cheap goods. And China's Commerce Ministry on Friday accused the U.S. of undermining the rules-based multilateral trading system since the Trump administration took office in 2025, vowing to intensify its use of dispute settlement actions at the WTO. It also urged the U.S. to roll back measures that breach non-discrimination rules and align its industrial and security policies with WTO obligations. Bessent earlier in the week had accused one of He's top aides of being "unhinged" in recent interactions with U.S. trade negotiators. China said on Friday that Bessent's remarks "seriously distort the facts." (Reporting by Doina Chiacu, Andrea Shalal, Susan Heavey and David Lawder; Editing by William Maclean, Paul Simao, Andrea Ricci and Tom Hogue)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Doina Chiacu and Andrea Shalal WASHINGTON (Reuters) -U.S. President Donald Trump said his proposed 100% tariff on goods from China would not be sustainable, but blamed Beijing for the latest impasse in trade talks that began with Chinese authorities tightening control over rare earth exports. Asked whether such a high tariff was sustainable and what that might do to the economy, Trump replied, "It's not sustainable, but that's what the number is." "They forced me to do that," he said in an interview with Fox Business Network that was broadcast on Friday. Trump unveiled additional levies of 100% on China's U.S.-bound exports a week ago, along with new export controls on "any and all critical software" by November 1, nine days before existing tariff relief was set to expire. The new trade actions were Trump's reaction to China dramatically expanding its export controls on rare earth elements. China dominates the market for such elements, which are essential to tech manufacturing. Trump also confirmed he would meet with Chinese President Xi Jinping in two weeks in South Korea – a meeting the U.S. president had cast doubt on last week – and expressed admiration for the Chinese leader. "I think we're going to be fine with China, but we have to have a fair deal. It's got to be fair," Trump said on FBN's "Mornings with Maria," which was taped on Thursday. Later, as he was preparing to have a lunch at the White House with Ukrainian President Volodymyr Zelenskiy to discuss efforts to end its war with Russia, Trump said: "China wants to talk, and we like talking to China." The softening in tone and affirmation of his intent to meet with Xi helped stem Wall Street's early losses on Friday. Major U.S. stock indexes, which have been rattled over the last week by Trump's abrupt re-imposition of steep levies on Chinese imports and by credit worries among regional banks, were up in afternoon trading. U.S. Treasury Secretary Scott Bessent at the White House event said he would speak with his counterpart, Chinese Vice Premier He Lifeng, later on Friday to discuss ongoing trade negotiations between the two countries. "I think that things have de-escalated," Bessent said. "We hope that China will show the respect that we have shown them, and I am confident that President Trump, because of his relationship with President Xi, will be able to get things back on a good course." WTO URGES DE-ESCALATION OF TRADE SPATS The head of the World Trade Organization said she urged the U.S. and China to de-escalate trade tensions, warning that a decoupling by the world's two largest economies could reduce global economic output by 7% over the longer term. WTO Director-General Ngozi Okonjo-Iweala told Reuters in an interview the global trade body was extremely concerned about the latest spike in U.S.-China trade tensions and had spoken with officials from both countries to encourage more dialogue. But tensions continued to run high, even as Trump and Xi prepared to meet. Bessent took aim at China's state-driven economic practices in a statement to the IMF's steering committee on Friday, urging the IMF and World Bank to take a tougher stance on China's external and internal balances and industrial policies that U.S. officials say have helped China build up excess manufacturing capacity that is flooding the world with cheap goods. And China's Commerce Ministry on Friday accused the U.S. of undermining the rules-based multilateral trading system since the Trump administration took office in 2025, vowing to intensify its use of dispute settlement actions at the WTO. It also urged Washington to roll back measures that breach non-discrimination rules and align its industrial and security policies with WTO obligations. Bessent earlier in the week had accused one of He's top aides of being "unhinged" in recent interactions with U.S. trade negotiators. Beijing on Thursday said Bessent's remarks "seriously distort the facts." (Reporting by Doina Chiacu and Susan Heavey; Editing by William Maclean, Paul Simao and Andrea Ricci)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)