व्यापार

By Sukriti Gupta and Noel Randewich (Reuters) -Wall Street's main indexes ended sharply higher on Monday, led by gains in Broadcom and other chipmakers, after President Donald Trump struck a conciliatory tone about renewed U.S.-China trade tensions, easing investor worries. Lifting sentiment, U.S. Treasury Secretary Scott Bessent said in an interview with Fox Business Network that Trump was on track to meet his Chinese counterpart in South Korea as the two sides work on de-escalating trade frictions that grew late last week. AI-related tech stocks were the biggest winners in Monday's rebound. Broadcom surged almost 10% after partnering with OpenAI to produce the startup's first in-house artificial intelligence processors. The Nasdaq notched its biggest one-day gain since May 27. "AI continues to be the momentum driver, and it's not surprising investors have purchased the dip," said Sam Stovall, Chief Investment Strategist at CFRA Research, adding that investors should remain cautious as long as Trump's dispute with China remains unresolved. Wall Street tumbled on Friday, with the S&P 500 and Nasdaq posting their steepest weekly declines in months. The latest rupture followed China's announcement on Thursday that it would dramatically expand its rare earths export controls. In retaliation, Trump on Friday said he would apply an additional 100% tariff on imports from China and impose export controls on all critical U.S.-made software from November 1. However, over the weekend, Trump said "it will all be fine" and that the U.S. did not want to "hurt" China. China on Sunday blamed the U.S. for the escalation but did not roll out further countermeasures. Other AI-related chipmakers also gained, with Nvidia climbing 2.8% and Micron Technology jumping over 6%. The PHLX chip index soared almost 5%. JPMorgan Chase, Goldman Sachs, Citigroup, and Wells Fargo are set to release quarterly results on Tuesday, kicking off an earnings season that investors will watch closely for signs of how tariffs are impacting Wall Street's largest companies. Earnings reports will provide fresh clues on the economy at a time when major official data releases remain delayed due to an ongoing government shutdown. Analysts on average expect S&P 500 companies' third-quarter earnings to grow 8.8% from a year ago, according to LSEG data. The S&P 500 climbed 1.56% to end the session at 6,654.72 points.     The Nasdaq gained 2.21% to 22,694.61 points, while the Dow Jones Industrial Average rose 1.29% to 46,067.58 points. Ten of the 11 S&P 500 sector indexes rose, led by information technology, followed by a 2.29% gain in consumer discretionary. Following Friday's steep drop and Monday's partial recovery, the S&P 500 is about 1.5% below its record high close reached on October 8. In the Middle East, Hamas freed the last living Israeli hostages from Gaza and Israel sent home Palestinian detainees as part of a ceasefire deal pushed by Trump. Oracle jumped 5.1% after at least two brokerages raised their price target on the AI cloud firm. Estee Lauder advanced 5.8% after a report that Goldman Sachs upgraded the stock's rating to "buy" from "neutral". Fastenal dropped 7.5% after the industrial supplies distributor missed third-quarter profit expectations. Advancing issues outnumbered falling ones within the S&P 500 by a 2.5-to-one ratio. The S&P 500 posted 7 new highs and 14 new lows; the Nasdaq recorded 91 new highs and 120 new lows. Volume on U.S. exchanges was relatively light, with 18.2 billion shares traded, compared to an average of 20.2 billion shares over the previous 20 sessions. (Reporting by Sukriti Gupta and Twesha Dikshit in Bengaluru, and by Noel Randewich in San Francisco; Editing by Maju Samuel and David Gregorio)

(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 Chibuike Oguh and Amanda Cooper NEW YORK/LONDON (Reuters) -The dollar advanced against the euro and yen on Monday, after a change in rhetoric from U.S. President Donald Trump lowered the temperature of simmering trade tensions with China. The U.S. dollar strengthened 0.61% to 0.804 against the Swiss franc, rebounding from the previous session when Trump threatened to impose 100% tariffs on China. The broadside revived bad memories of Trump's Liberation Day rollout of sweeping tariffs in April and sparked a selloff in stocks and cryptocurrencies on Friday. "It's kind of a repeat of what happened after Liberation Day," said Eugene Epstein, head of trading and structured products at Moneycorp in New Jersey. "Traditionally, the U.S. dollar strengthens when there's any kind of risk-off or any kind of stress across asset classes or markets and, like Liberation Day, the opposite happened because of trade tensions between the U.S. and fellow trade partners in this case, China. Any time something like that comes up, people actually sell the U.S. dollar," Epstein said. The dollar index, which measures the U.S. currency's performance against a basket of six others, was last up 0.2% at 99.25, recovering from the previous session's drop. "I still believe across all developed currencies, the U.S. dollar is still the primary safe haven; obviously, the Swiss franc is as well. With what happened last week, it was just essentially the same playbook: any kind of trade tensions means sell the U.S. dollar. Today, things are reversing because the trade tensions are seemingly de-escalating a little bit," Epstein added. TRUMP SOFTENS TONE After announcing the 100% tariffs on Friday, Trump said on Sunday: "Don't worry about China, it will all be fine!" "Highly respected President Xi just had a bad moment," he posted on the Truth Social network. "He doesn't want Depression for his country, and neither do I. The U.S.A wants to help China, not hurt it!!!" Trump remains on track to meet Chinese leader Xi Jinping in South Korea in late October as the two sides try to de-escalate tensions over tariff threats and export controls, U.S. Treasury Secretary Scott Bessent said on Monday. Trade tensions could weigh on the Federal Reserve's interest rate decision at its next meeting, Thierry Wizman, FX and rates strategist, said in an investor note. "If the prospect of a renewal of high tariffs still exists on October 29, it won't leave the FOMC at ease, especially with inflation in the U.S. still 'sticky.' If anything, the prospect of higher tariffs may make the Fed more reluctant to cut, or more inclined to deliver another "hawkish" cut," Wizman said. European markets broadly shrugged off the French presidency's announcement of Prime Minister Sebastien Lecornu's new cabinet lineup on Sunday, reappointing Roland Lescure, a close ally of Emmanuel Macron, as finance minister. The euro was last down 0.4% at $1.1571 after advancing against the dollar in the previous session. Against the Japanese yen, the dollar strengthened 0.81% to 152.36. A public holiday in Japan made for thinner trading. Markets assessed the path ahead for Japan's new Liberal Democratic Party leader Sanae Takaichi after Komeito quit the ruling coalition on Friday, dealing a blow to her hopes of becoming the first female prime minister of the world's fourth-largest economy. Traders will often borrow in a low-yielding currency to invest in a higher-yielder, known as a carry trade. The Japanese yen and Swiss franc have typically been funding currencies and took a harder knock than others on Monday.  The Australian dollar, which tends to rally in a risk-on environment, rose 0.7% to $0.6514, making it one of the best-performing major currencies against the dollar on Monday.  Sterling weakened 0.18% to $1.3334. The dollar weakened 0.14% to 7.137 versus the offshore Chinese yuan. The crypto sector last Friday experienced over $19 billion in liquidations of leveraged positions, which market players said were the largest in history, after Trump announced the tariffs on Chinese imports and hinted at possible export restrictions on key software. On Monday, bitcoin gained 0.23% at $115,322.97. Ethereum rose 2.6% to $4,250.75. ​ (Reporting by Chibuike Oguh in New York; Additional reporting by Gregor Stuart Hunter; Editing by Shri Navaratnam, Jamie Freed, Aidan Lewis, Toby Chopra, Andrea Ricci and Richard Chang)

(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 Toby Sterling AMSTERDAM (Reuters) -The Dutch government has taken control of Chinese-owned computer chipmaker Nexperia, ratcheting up tensions with Beijing as a global fight brews over technology intellectual property, especially around semiconductors. The government said late on Sunday that it has intervened in Nijmegen-headquartered Nexperia, which manufactures chips for cars and consumer electronics. It cited worries about the possible transfer of technology to Nexperia's Chinese parent company, Wingtech.  The Hague invoked never-before-used powers under a Dutch law known as the "Availability of Goods Act." The decision led to a 10% fall in Wingtech's shares in Shanghai on Monday. The Dutch government will not take ownership of Nexperia, but it will now have the power to reverse or block management decisions it considers harmful. The company's regular production is continuing.  WINGTECH SAYS DECISION DRIVEN BY 'GEOPOLITICAL BIAS' U.S. President Donald Trump is ratcheting up pressure on Chinese tech firms as part of a broader trade war that saw him threaten 100% tariffs on China's exports last week. The U.S. and the Netherlands typically cooperate closely on computer chip industry export controls. A Dutch Economic Affairs Ministry spokesperson, however, said there was no U.S. involvement in its decision regarding Nexperia and the timing was "purely coincidental". Washington last month expanded a list of blacklisted firms seen as threats to national security to include subsidiaries. Wingtech had already been placed on the United States' "entity list" in December 2024 for its alleged role "in aiding China's government's efforts to acquire entities with sensitive semiconductor manufacturing capability." Nexperia, which is 100%-owned by Wingtech, said at the time that it would comply with the U.S. rules, though it said its operations were kept at arm's length from its Chinese parent. Wingtech called the Dutch government's intervention in Nexperia, once part of Dutch electronics group Philips, "excessive interference driven by geopolitical bias". Wingtech also alleged that non-Chinese Nexperia executives had tried to forcibly alter the company's equity structure through legal proceedings in a "cloaked power grab" on the company. A copy of an Amsterdam commercial court ruling dated October 7 and seen by Reuters showed that the court decided on October 1 to suspend Wingtech CEO Zhang Xuezheng from his position as executive director at Nexperia after finding "well founded reasons to doubt" the company was pursuing correct management policy or actions under Dutch civil law. It appointed Dutch businessman Guido Dierick to take Zhang's position with a "deciding vote", and transferred control of almost all of Nexperia's shares to a Dutch lawyer for management. The Dutch state and the company's labour council had supported the moves, the document showed. Wingtech could not immediately be reached for comment on Monday outside of normal business hours in China. Wingtech said in a statement on Sunday that it was consulting with lawyers and seeking government support to "protect the legitimate rights and interests of the company". Nexperia, which Wingtech bought for $3.63 billion in 2018, said it complied with all relevant laws and regulations. COURT ORDERED WINGTECH CHAIR SUSPENDED FROM NEXPERIA BOARD In its statement, the Dutch government said that administrative problems at Nexperia posed a threat to the company's "crucial technological knowledge" without elaborating. "The loss of these capabilities could pose a risk to Dutch and European economic security," it said. Nexperia is one of the world's largest makers of simple computer chips such as diodes and transistors, though it also develops more advanced technologies such as "wide gap" semiconductors used in electrical settings and useful for electric cars, chargers and AI data centres. Wingtech said in a filing to the Shanghai stock exchange on Monday that its control over Nexperia would be temporarily restricted due to the Dutch order and court rulings, affecting decision making and operational efficiency.  In addition to the United States, Wingtech has had run-ins before with other Western governments over its operations, with Britain ordering it to divest ownership of a facility in Newport. The Netherlands scrutinised Nexperia's purchase of startup Nowi in 2023. (Reporting by Toby Sterling in Amsterdam; Additional reporting by Samuel Shen and Brenda Goh in Shanghai. Editing by Edmund Klamann, Michael Perry, Joe Bavier and Matthew Lewis)

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

(Corrects name spelling in sixth paragraph) By Francesco Canepa and Howard Schneider FRANKFURT/WASHINGTON (Reuters) -U.S. companies and consumers are bearing the brunt of the country's new import tariffs, early indications show, contradicting assertions by President Donald Trump and complicating the Federal Reserve's fight against inflation. Trump famously predicted that foreign countries would pay the price of his protectionist policies, wagering that exporters would absorb that cost just to keep a foothold in the world's largest consumer market. But academic studies, surveys and comments from businesses show that through the first months of Trump's new trade regime it is U.S. companies that are footing the bill and passing on some of it to the consumer – with more price hikes likely. "Most of the cost seems to be borne by U.S. firms," Harvard University professor Alberto Cavallo said in an interview to discuss his findings. "We have seen a gradual pass-through to consumer prices and there's a clear upward pressure." A White House spokesperson said "Americans may face a transition period from tariffs" but the cost would "ultimately be borne by foreign exporters." Companies were diversifying supply chains and bringing production to the United States, the spokesperson added. WHO IS EATING THE TARIFFS? Cavallo and researchers Paola Llamas and Franco Vazquez have been tracking the price of 359,148 goods, from carpets to coffee, at major online and brick-and-mortar retailers in the United States. They found that imported goods have become 4% more expensive since Trump started imposing tariffs in early March, while the price of domestic products rose by 2%. The biggest increases for imports were seen in goods that the United States cannot produce domestically, such as coffee, or that come from highly penalised countries, like Turkey. These price hikes, while material, have been generally far smaller than the tariff rate on the products in question – implying that sellers were absorbing some of the cost as well. Yet U.S. import prices, which don't include tariffs, showed foreign exporters have been raising their prices in dollars and passing on to their U.S. buyers part of the greenback's depreciation against their currencies. "This suggests foreign producers are not absorbing much if any of the U.S. tariffs, consistent with prior economic research," researchers at Yale University's Budget Lab think-tank said in a blog post. National indices of export prices paint the same picture. The cost of goods exported by China, Germany, Mexico, Turkey and India have all risen, with Japan the only exception.   FULL IMPACT OF TARIFFS YET TO BE FELT Adapting to Trump's tariffs – a still-incomplete set of levies that pushed import taxes from an average of around 2% to an estimated 17% – is still underway. It is seen taking months longer as exporters, importers and consumers jostle over who pays duties worth round $30 billion per month. "We shouldn't expect this to be a one-time jump but rather firms are trying to find ways to soften the blow," and stretch price increases out over time, Cavallo added. European carmakers have looked – so far – to absorb more of the price impact, but consumer firms including Tide detergent-maker Procter & Gamble, Ray Ban-maker EssilorLuxottica and Swiss watchmaker Swatch have hiked prices. Around 72% of companies in Europe, the Middle East and Africa tracked by Reuters flagged price hikes since Trump's trade salvoes started, a Reuters tracker shows. Only 18 companies have warned on profit margins. Separate Reuters analyses of e-commerce websites Shein and Amazon were already showing robust price increases for Chinese products sold in the United States, ranging from clothing to electronics. China's so-called "anti-involution" policy, under which producers are encouraged to scale back competition and even cut capacity in key sectors, could add fuel to the fire by curbing the supply of goods such as solar-power equipment. That has all set the scene for higher inflation in the United States. The Fed cut its benchmark rate last month on concerns the job market was weakening but policymakers are split over whether or not tariff-driven inflation will likely fade. The Fed's newest governor, Stephen Miran, on leave from the Trump administration, argues the tariffs are not inflationary and has brushed off concerns about what he called "relatively small changes in some goods prices." A Boston Fed "back of the envelope" calculation projected tariffs would push up core inflation by 75 basis points. Fed Chair Jerome Powell said tariffs accounted for perhaps 30-40 basis points of the latest core inflation reading of 2.9% but the effect should be "relatively short-lived." The Peterson Institute for International Economics estimated that inflation over the next year would be 1 percentage point higher than if tariffs hadn't been raised but would then fall back. GLOBAL TRADE SEEN SUFFERING AS TARIFFS BITE The rest of the world, however, has no reason to celebrate. As U.S. consumers struggle to keep up with rising prices, demand for exports is likely to slow. An S&P Global survey of purchasing managers at companies all over the world showed new export orders contracting at an increasing pace since June. European Union exports to the United States fell by 4.4% from the prior year in July, the latest month for which data was available, and in the bloc's former powerhouse Germany they were down 20.1% in August. The World Trade Organization, too, slashed its forecast for global merchandise trade volume growth next year to just 0.5%, citing a delayed impact from U.S. tariffs. U.S. shipment data tracked by German think tank the Kiel Institute also showed a clear downtrend. While that all may partly reflect strong front-loading of orders earlier in the year in anticipation of tariffs, it is also prompting caution about the trade outlook. Dutch bank ING expected a 17% reduction in EU goods exports to the U.S. over the next two years, costing the bloc 30 basis points of GDP growth. "The expected impact of U.S. tariffs hasn’t materialized yet," Ruben Dewitte, an economist at ING, said. "We anticipate these effects will become more visible in the coming months." (Additional reporting by Marius Zaharia in Hong Kong; Jarrett Renshaw; Juveria Tabassum and Arriana Mclymore in Bengaluru; Adam Jourdan in London; Editing by Mark John 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.)

(Reuters) -NASA's Jet Propulsion Laboratory said on Monday it will cut nearly 550 jobs as part of a restructuring, not related to the current U.S. government shutdown. The layoffs will affect employees across JPL's technical, business and support areas as part of a reorganization that began in July , it said in a statement on its website. (Reporting by Juby Babu in Mexico City; Editing by Shailesh Kuber)

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

(Reuters) -Bombardier added a new order from Comlux Aviation for its Global 8000 business jet to its backlog, the Canadian planemaker announced on Monday during the National Business Aviation Association's annual conference. The company is still on track this year to deliver the first Global 8000, which it claims is the fastest purpose-built business jet in the world. Also on Monday, the company said the jet had set a new top speed at 0.95 mach, or about 729 miles per hour. The company has not yet revealed who will take the first Global 8000 delivery later this year. Comlux, a Swiss-based charter airline and aviation services company, is slated to take possession of its Global 8000 in 2026, according to Bombardier. (Reporting by Dan Catchpole in Seattle, Editing by Chris Reese)

(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 Matt Tracy (Reuters) -Credit rating agency Moody's Ratings changed European automaker Stellantis' ratings outlook to negative on Monday, though maintained its current ratings. In their Monday report, Moody's analysts outlined the financial risks facing the owner of Chrysler, Fiat, Jeep and other car brands. The report highlighted Stellantis's weak operating performance, as well as whether and how much the company could see its profitability and free cash flow generation recover.  Analysts also pointed to the automaker's declining market share since the start of 2024, as auto dealers have reduced their inventories, demand for various brand models has dipped, and the company has experienced delays in new product launches. "Additionally, challenging market conditions in Europe and the impact of U.S. import tariffs have further pressured profitability and cash flow," the Moody's analysts wrote. The rating agency stopped short of actually downgrading Stellantis's ratings, citing among other things the automaker's weakening but still-strong liquidity profile and its resilient global scale.  Stellantis holds an issuer-level Moody's rating of Baa2, which is on the lower end of the investment-grade ratings spectrum. (Reporting by Matt Tracy; Editing by David Gregorio)

(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 Nupur Anand NEW YORK (Reuters) -JPMorgan Chase announced plans on Monday to hire bankers and invest up to $10 billion in U.S. companies considered critical to national security and economic resilience as part of a broader $1.5 trillion pledge.  The 10-year initiative aims to facilitate, finance and invest in industries central to the growth of the U.S. economy, including defense, energy and manufacturing. Shares of the largest U.S. bank climbed more than 2%. JPMorgan said it will deploy the $10 billion through direct equity and venture capital investments. CEO DIMON: INITIATIVE NOT TRUMP-DRIVEN, '100% COMMERCIAL' U.S. President Donald Trump is looking to modernize infrastructure and reduce dependence on foreign supply chains, particularly in sectors such as pharmaceuticals, semiconductors, clean energy and rare earth minerals.  Monday's announcement also follows criticism from Trump of JPMorgan and its rivals for so-called "debanking" clients for their political or religious beliefs. JPMorgan CEO Jamie Dimon, speaking on a conference call during which he was asked several times about the government's involvement, said the investments were not driven by the Trump administration. "This is a JPMorgan initiative," he said, emphasizing that the investments would be "100% commercial" and not philanthropic. Trump revived a trade war with Beijing on Friday, ending an uneasy truce between the world's two largest economies with promises to sharply hike tariffs in a reprisal against China curbing its rare earths exports. "It has become painfully clear that the United States has allowed itself to become too reliant on unreliable sources of critical minerals, products and manufacturing – all of which are essential for our national security," Dimon said in an earlier statement. JPMorgan said its new "security and resiliency initiative" would facilitate financing and investment across four strategic sectors: supply chain and manufacturing; defense and aerospace; energy independence; and frontier technologies such as artificial intelligence and quantum computing. The firm said it had already planned to facilitate and finance about $1 trillion over the next decade in support of clients in these industries, according to previously undisclosed internal figures, but it would increase the size by 50%. US PURSUING DEALS INVOLVING DOZENS OF COMPANIES The U.S. government is pursuing deals across up to 30 industries, involving dozens of companies deemed critical to national or economic security, Reuters reported this month. JPMorgan, which helped put together the government's deal with U.S. rare earths mining company MP Materials, said in a recent company podcast that the bank was working with the Trump administration to explore more such opportunities. "We've had no less than 100 calls with clients to talk about the MP transaction as well as what this means for other industries," said Andrew Castaldo, JPMorgan co-head of mid-cap mergers and acquisitions. "And we've had numerous trips down to Washington to explore those opportunities with the government." Dimon also emphasized the need for policy reform to accelerate progress, citing regulatory delays and workforce challenges.  "America needs more speed and investment," he said.  FOUR KEY INVESTMENT AREAS  The four key investment areas identified by the firm have been divided into 27 sub-sectors ranging from shipbuilding and nuclear energy to nanomaterials and secure communications. They will include middle-market companies as well as large corporate clients, it added. The bank plans to establish an external advisory council composed of public- and private-sector leaders, in addition to hiring more bankers and investment professionals. Dimon said he intends to hire a top-notch investment team quickly, without specifying how many bankers he planned to add. It will also expand research on supply chain vulnerabilities and emerging technologies using its recently launched Center for Geopolitics. (Reporting by Nupur Anand in New York; Editing by Jamie Freed, Lananh Nguyen, Mark Porter and Joe Bavier)

(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 Jaspreet Singh (Reuters) -Salesforce said on Monday it would invest $15 billion in San Francisco over the next five years to accelerate AI adoption, as the cloud software provider looks to sharpen its competitive edge against tech giants. Founded in San Francisco in 1999 and still headquartered there, Salesforce has been integrating AI into its products, including workplace messaging platform Slack, as it jostles with companies such as ServiceNow, Oracle and Microsoft to win businesses eager to adopt the booming technology. Salesforce said the latest investment would support a new AI incubator hub on its San Francisco campus and help companies adopt AI agents, which can perform tasks on behalf of the users. "This $15 billion investment reflects our deep commitment to our hometown — advancing AI innovation, creating jobs and helping companies and our communities thrive," CEO Marc Benioff said. The announcement comes ahead of the company's Dreamforce conference, scheduled to take place between October 14 and October 16 in San Francisco. The annual conference is expected to draw nearly 50,000 attendees and generate $130 million in local revenue, Salesforce said. The company, which has more than 76,000 employees globally, last week announced plans to spend $1 billion in Mexico over the next five years. It began operating in Mexico in 2006. "If the company wants to remain a leader in an important emerging technology area, it must have a pipeline of talent to innovate and drive the field forward. We already see shortages of AI talent, so this makes sense," Morningstar analyst Dan Romanoff said. Salesforce shares were up 2.8%. They have fallen around 28% so far this year. Earlier in the day, the company also launched its "Agentforce 360" AI platform globally. Salesforce had in September forecast third-quarter revenue below analysts' estimates, and announced a $20 billion increase to its existing share buyback program. (Reporting by Jaspreet Singh in Bengaluru; Editing by Shilpi Majumdar)

(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 Olivia Le Poidevin GENEVA (Reuters) -Small and medium-sized businesses and developing economies are likely to be at particular risk of a slowdown in investment due to ongoing tariff uncertainty, the Secretary-General of the UN Trade and Development Agency told Reuters on Monday. "We fear that there will be more lagging numbers in terms of investment," UNCTAD's Rebeca Grynspan said in an interview at her office in Geneva. "We fear small and medium-sized businesses will be affected everywhere, but also small countries that depend much more on trade and investment to really seek growth." While AI has driven trade and investment this year, she said, it remains concentrated and excludes small countries with developing economies. A UNCTAD report in July found that global foreign direct investment fell for a second consecutive year in 2024, with concerns this year could be even worse as trade tensions rock investor confidence. Since he took office in January, U.S. President Donald Trump's tariff decisions have shaken financial markets and sent a wave of uncertainty through the global economy. Grynspan said forecasts for 2026 hinge on whether the current trade tensions escalate into a full-blown trade war, or if higher tariffs persist amid ongoing trade negotiations. "There is uncertainty, but there will be more predictability. The markets will adapt to the new situation," she said. Grynspan said the least developed countries in Africa and small island states were "worse off" and have less resilience amid trade uncertainties, as they face higher tariffs compared to developed nations. While the EU has struck a deal setting duties at 15% on most goods it exports to the United States, they are often much higher on so-called least developing countries. Laos, for example, faces tariffs at 40%. Grynspan urged the U.S. to spare vulnerable countries from higher tariffs. In July, Lesotho, a small African nation, received a modified tariff rate of 15% following Trump’s earlier threat of 50% tariffs. (Reporting by Olivia Le Poidevin; Editing by Jan Harvey)

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