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Tag: Economic policy

  • US futures fall while Asian markets are mostly higher after the Supreme Court nixes Trump’s tariffs

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    BANGKOK — U.S. futures fell and most Asian markets climbed Monday after the Supreme Court struck down most of President Donald Trump’s sweeping tariffs.

    Tokyo’s markets were closed for a holiday.

    Hong Kong led regional gains as its Hang Seng index surged 2.2% to 27,003.47. But the Shanghai Composite index lost 1.3% to 4,082.07.

    In South Korea, the Kospi gained 1.1% to 5,873.07.

    Australia’s S&P/ASX 200 shed 0.4% to 9,041.00.

    Taiwan’s Taiex jumped 1.4%.

    The mixed reactions are “highlighting the winners-and-losers effect of shifts in tariff policy that has just delivered a boost to countries who previously had a comparatively bad deal,” Benjamin Picton of Rabobank said in a commentary.

    “U.S. tariff policy will continue to be a source of uncertainty for markets as traders attempt to price in the implications of what is still a movable feast,” he wrote.

    The future for the S&P 500 lost 0.7% and that for the Dow Jones Industrial Average dropped 0.6%. The future for the Nasdaq composite index was down 0.8%.

    On Friday, Wall Street kept calm after the Supreme Court’s ruling against Trump’s sweeping tariffs, which had triggered panic in financial markets when they were announced last year.

    The S&P 500 rose 0.7% to 6,909.51. It had been flipping between small gains and losses before the court’s ruling, following discouraging reports showing slowing growth for the U.S. economy and faster inflation.

    The Dow Jones Industrial Average added 0.5% to 49,625.97. The Nasdaq composite rose 0.9% to 22,886.07.

    Tariffs also aren’t going away, even with the Supreme Court’s ruling. Trump in the afternoon said he would use other avenues to put taxes on imports from other countries after calling the court’s decision terrible.

    “Just so you understand, we have tariffs, we just have them in a different way,” Trump told reporters in an afternoon briefing. He said he would sign an executive order to impose a 10% global tariff under a law that could limit it to 150 days. He later raised that to 15%.

    The president also said he’s exploring other tariffs through other avenues, ones that would require an investigation through the Commerce Department.

    The reaction has been tentative given persisting uncertainties over what Trump will do.

    On Wall Street, Akamai Technologies dropped 14.1% for one of the market’s sharpest losses. The cybersecurity and cloud computing company reported stronger results for the end of 2025 than analysts expected, but it gave a profit forecast for the upcoming year that fell short of estimates.

    Akamai plans to spend a bigger percentage of its revenue this upcoming year on equipment and other investments. It’s the latest potential indicator of how shortages of computer memory created by the AI boom are affecting customers throughout the economy.

    Discouraging reports showing slowing U.S. economic growth and accelerating inflation drew a relatively muted response from investors.

    The reports underscore the tricky situation the Federal Reserve faces as it sets interest rates, but did not change traders’ expectations much for what the Fed will ultimately do. Traders are still betting that the Fed will lower rates at least twice this year, according to data from CME Group.

    Lower interest rates would give the economy and investment prices a boost, but they also risk worsening inflation. Fed officials said at their last meeting that they want to see inflation fall further before they would support cutting rates further.

    In other dealings early Monday, U.S. benchmark crude oil lost 53 cents to $65.95 per barrel. Brent crude, the international standard, gave up 51 cents to $70.79 per barrel.

    The U.S. dollar slipped to 154.11 Japanese yen f rom 154.99 yen. The euro rose to $1.1828 from $1.1780.

    The price of gold rose 1.9%, while the price of silver was up 5.5%.

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  • US futures fall while Asian markets are mostly higher after the Supreme Court nixes Trump’s tariffs

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    BANGKOK — U.S. futures fell and most Asian markets climbed Monday after the Supreme Court struck down most of President Donald Trump’s sweeping tariffs.

    Tokyo’s markets were closed for a holiday.

    Hong Kong led regional gains as its Hang Seng index surged 2.2% to 27,003.47. But the Shanghai Composite index lost 1.3% to 4,082.07.

    In South Korea, the Kospi gained 1.1% to 5,873.07.

    Australia’s S&P/ASX 200 shed 0.4% to 9,041.00.

    Taiwan’s Taiex jumped 1.4%.

    The mixed reactions are “highlighting the winners-and-losers effect of shifts in tariff policy that has just delivered a boost to countries who previously had a comparatively bad deal,” Benjamin Picton of Rabobank said in a commentary.

    “U.S. tariff policy will continue to be a source of uncertainty for markets as traders attempt to price in the implications of what is still a movable feast,” he wrote.

    The future for the S&P 500 lost 0.7% and that for the Dow Jones Industrial Average dropped 0.6%. The future for the Nasdaq composite index was down 0.8%.

    On Friday, Wall Street kept calm after the Supreme Court’s ruling against Trump’s sweeping tariffs, which had triggered panic in financial markets when they were announced last year.

    The S&P 500 rose 0.7% to 6,909.51. It had been flipping between small gains and losses before the court’s ruling, following discouraging reports showing slowing growth for the U.S. economy and faster inflation.

    The Dow Jones Industrial Average added 0.5% to 49,625.97. The Nasdaq composite rose 0.9% to 22,886.07.

    Tariffs also aren’t going away, even with the Supreme Court’s ruling. Trump in the afternoon said he would use other avenues to put taxes on imports from other countries after calling the court’s decision terrible.

    “Just so you understand, we have tariffs, we just have them in a different way,” Trump told reporters in an afternoon briefing. He said he would sign an executive order to impose a 10% global tariff under a law that could limit it to 150 days. He later raised that to 15%.

    The president also said he’s exploring other tariffs through other avenues, ones that would require an investigation through the Commerce Department.

    The reaction has been tentative given persisting uncertainties over what Trump will do.

    On Wall Street, Akamai Technologies dropped 14.1% for one of the market’s sharpest losses. The cybersecurity and cloud computing company reported stronger results for the end of 2025 than analysts expected, but it gave a profit forecast for the upcoming year that fell short of estimates.

    Akamai plans to spend a bigger percentage of its revenue this upcoming year on equipment and other investments. It’s the latest potential indicator of how shortages of computer memory created by the AI boom are affecting customers throughout the economy.

    Discouraging reports showing slowing U.S. economic growth and accelerating inflation drew a relatively muted response from investors.

    The reports underscore the tricky situation the Federal Reserve faces as it sets interest rates, but did not change traders’ expectations much for what the Fed will ultimately do. Traders are still betting that the Fed will lower rates at least twice this year, according to data from CME Group.

    Lower interest rates would give the economy and investment prices a boost, but they also risk worsening inflation. Fed officials said at their last meeting that they want to see inflation fall further before they would support cutting rates further.

    In other dealings early Monday, U.S. benchmark crude oil lost 53 cents to $65.95 per barrel. Brent crude, the international standard, gave up 51 cents to $70.79 per barrel.

    The U.S. dollar slipped to 154.11 Japanese yen f rom 154.99 yen. The euro rose to $1.1828 from $1.1780.

    The price of gold rose 1.9%, while the price of silver was up 5.5%.

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  • Murky outlook for businesses after tariff ruling prompts countermoves by Trump

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    NEW YORK — Businesses face a new wave of uncertainty after the Supreme Court struck down tariffs imposed by President Donald Trump under an emergency powers law and Trump vowed to work around the ruling to keep his tariffs in place.

    The Trump administration says its tariffs help boost American manufacturers and reduce the trade gap. But many U.S. businesses have had to raise prices and adjust in other ways to offset higher costs spurred by the tariffs.

    It remains to be seen how much relief businesses and consumers will actually get from Friday’s ruling. Within hours of the court’s decision, Trump pledged to use a different law to impose a 10% tariff on all imports that would last 150 days, and to explore other ways to impose additional tariffs on countries he says engage in unfair trade practices.

    “Any boost to the economy from lowering tariffs in the near-term is likely to be partly offset by a prolonged period of uncertainty,” said Michael Pearce, an economist at Oxford Economics. “With the administration likely to rebuild tariffs through other, more durable, means, the overall tariffs rate may yet end up settling close to current levels.”

    Efforts to claw back the estimated $133 billion to $175 billion of previously collected tariffs now deemed illegal are bound to be complicated, and will likely favor larger companies with more resources. Consumers hoping for a refund are unlikely to be compensated.

    With Trump’s unyielding position on tariffs, many business are braced for years of court battles.

    Basic Fun, a Florida-based maker of toys such as Lincoln Logs and Tonka trucks, last week joined a slew of other businesses in a lawsuit seeking to claw back tariffs paid to the government.

    While company CEO Jay Foreman is concerned about any new tariffs Trump may impose, he doesn’t think they will affect toys. Still, he said, “I do worry about some type of perpetual fight over this, at least for the next three years.”

    The new 10% tariff Trump announced Friday immediately raised questions for Daniel Posner, the owner of Grapes The Wine Co., in White Plains, New York. Since wine shipments take about two weeks to cross the Atlantic, he wonders if a shipment arriving Monday will be affected.

    “We’re reactive to what’s become a very unstable situation,” Posner said.

    Ron Kurnik owns Superior Coffee Roasting Co. in Sault Ste. Marie, Michigan, across the border from Canada. In addition to U.S. tariffs, Kurnik faced retaliatory tariffs from Canada for much of last year when he exported his coffee.

    “It’s like a nightmare we just want to wake up from,” said Kurnik, whose company has raised prices by 6% twice since the tariffs went into effect. While he’s pleased with the Supreme Court’s ruling, he doesn’t think he will ever see a refund.

    A wide array of industries, including retail, tech and the agricultural sector, used the Supreme Court ruling as an opportunity to remind Trump of how his trade policies have affected their businesses.

    The Business Roundtable, a group that lobbies on behalf of more than 200 U.S. companies, released a statement encouraging the administration to limit the focus of tariffs going forward to specific unfair trade practices and national security concerns.

    In the retail industry, stores of all stripes have embraced different ways to offset the effects of tariffs — from absorbing some of the costs themselves, to cutting expenses and diversifying their supply network. Still, they have had to pass on some price increases at a time when shoppers have been particularly sensitive to inflationary pressures.

    Dave French, executive vice president of government relations for The National Retail Federation, the nation’s largest retail industry trade group, said he hoped lower courts would ensure “a seamless process” to refund tariffs. That issue wasn’t addressed in Friday’s ruling.

    For the technology sector, Trump’s tariffs caused major headaches. Many of its products are either built overseas or depend on imports of key components. The Computer & Communications Industry Association, which represents a spectrum of technology companies employing more than 1.6 million people, expressed hope that the decision will ease the trade tensions.

    “With this decision behind us, we look forward to bringing more stability to trade policy,” said Jonathan McHale, the association’s vice president for digital trade.

    Farmers, who have been stung by higher prices for equipment and fertilizer since the tariffs went into effect, and reduced demand for their exports, also spoke out.

    “We strongly encourage the president to avoid using any other available authorities to impose tariffs on agricultural inputs that would further increase costs,” said American Farm Bureau Federation President Zippy Duvall.

    The Supreme Court ruled 6-3 that the International Emergency Economic Powers Act did not give the president authority to tax imports, a power that belongs to Congress. But the decision only affects tariffs imposed under that law, so some industries will see no relief at all.

    The decision leaves in effect tariffs on steel, upholstered furniture, kitchen cabinets and bathroom vanities, according to the Home Furnishings Association, which represents 15,000 furniture stores in North America.

    At Revolution Brewing in Chicago, the aluminum they use for cans costs as much as the ingredients that go inside them because of tariffs Trump has placed on metals that are not affected by the Supreme Court ruling. While the cans are made in Chicago, the aluminum comes from Canada, said Josh Deth, managing partner at the brewery.

    Tariffs have been just one challenge for his business, which is also affected by volatile barley prices and a slowdown in demand for craft beer.

    “Everything kind of adds up,” he said. “The beverage industry needs relief here. We’re getting crushed by the prices of aluminum.”

    Italian winemakers hard-hit by the tariffs greeted the Supreme Court decision with skepticism, warning that the decision may just deepen uncertainty around trade with the U.S.

    The U.S. is Italy’s largest wine market, with sales having tripled in value over the past 20 years. New tariffs on the EU, which the Trump administration initially threatened would be 200%, had sent fear throughout the industry, which remained even after the U.S. reduced, delayed and negotiated down.

    “There is a more than likely risk that tariffs will be reimposed through alternative legal channels, compounded by the uncertainty this ruling may generate in commercial relations between Europe and the United States,” said Lamberto Frescobaldi, president of UIV, a trade association that represents more than 800 winemakers.

    Elsewhere in Europe, initial reaction focused on renewed upheaval and confusion regarding costs facing businesses exporting to the US.

    Trump’s tariffs could hit pharmaceuticals, chemicals and auto parts, said Carsten Brzeski, an economist at ING bank. “Europe should not be mistaken, this ruling will not bring relief,” he said. “The legal authority may be different, but the economic impact could be identical or worse.”

    ___

    Anne D’Innocenzio in New York; Dee-Ann Durbin in Detroit; Michael Liedtke in San Francisco; David McHugh in Frankfurt, Germany; Jonathan Matisse in Nashville, Tennessee; Adrian Sainz in Memphis, Tennessee; and Nicole Winfield in Rome contributed to this report.

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  • Shein faces EU investigation over illegal products and addictive design features

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    LONDON — European Union regulators are investigating Shein over concerns the online retailer hasn’t done enough to limit the sale of illegal products or protect users from the platform’s allegedly addictive design.

    The 27-nation bloc’s executive arm said Tuesday that it opened formal investigation under the bloc’s sweeping rulebook known as the Digital Services Act, which requires the biggest online platforms to take extra steps to protect internet users from dodgy products.

    Shein may be required to alter its actions, or pay a hefty fine if a so-called non-compliance decision is reached following an in-depth investigation, the European Commission said.

    One area its investigation is focusing on is whether Shein has the proper safeguards in place to limit the sale of products that are illegal in the EU, the commission said, including items that amount to child sexual abuse material such as “child-like sex dolls.”

    The the fast-fashion giant came under fire last year in France, where authorities found illegal weapons including firearms, knives and machetes as well as child-like sex dolls for sale on its website. The French government sought to suspend access to the Shein site in France. A court blocked that action and asked the commission to investigate under the bloc’s Digital Services Act.

    The commission says it will also determine whether Shein has systems to mitigate risks related to what it says is the platform’s addictive design, which includes giving users points or rewards “for engagement.”

    And regulators are also targeting the transparency of Shein’s recommendation systems that suggest more products to consumers. They’re concerned that the company doesn’t clearly explain to users why they’re being recommended specific products.

    Shein said it takes its obligations seriously and will continue to cooperate with the commission.

    The company said it has invested significantly in strengthening compliance with the DSA. The measures “comprehensive systemic-risk assessments and mitigation frameworks, enhanced protections for younger users, and ongoing work to design our services in ways that promote a safe and trusted user experience.”

    “Protecting minors and reducing the risk of harmful content and behaviours are central to how we develop and operate our platform,” the company said in a press statement.

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  • Shein faces EU investigation over illegal products and addictive design features

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    LONDON — European Union regulators are investigating Shein over concerns the online retailer hasn’t done enough to limit the sale of illegal products or protect users from the platform’s allegedly addictive design.

    The 27-nation bloc’s executive arm said Tuesday that it opened formal investigation under the bloc’s sweeping rulebook known as the Digital Services Act, which requires the biggest online platforms to take extra steps to protect internet users from dodgy products.

    Shein may be required to alter its actions, or pay a hefty fine if a so-called non-compliance decision is reached following an in-depth investigation, the European Commission said.

    One area its investigation is focusing on is whether Shein has the proper safeguards in place to limit the sale of products that are illegal in the EU, the commission said, including items that amount to child sexual abuse material such as “child-like sex dolls.”

    The the fast-fashion giant came under fire last year in France, where authorities found illegal weapons including firearms, knives and machetes as well as child-like sex dolls for sale on its website. The French government sought to suspend access to the Shein site in France. A court blocked that action and asked the commission to investigate under the bloc’s Digital Services Act.

    The commission says it will also determine whether Shein has systems to mitigate risks related to what it says is the platform’s addictive design, which includes giving users points or rewards “for engagement.”

    And regulators are also targeting the transparency of Shein’s recommendation systems that suggest more products to consumers. They’re concerned that the company doesn’t clearly explain to users why they’re being recommended specific products.

    Shein said it takes its obligations seriously and will continue to cooperate with the commission.

    The company said it has invested significantly in strengthening compliance with the DSA. The measures “comprehensive systemic-risk assessments and mitigation frameworks, enhanced protections for younger users, and ongoing work to design our services in ways that promote a safe and trusted user experience.”

    “Protecting minors and reducing the risk of harmful content and behaviours are central to how we develop and operate our platform,” the company said in a press statement.

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  • Trump administration reaches a trade deal to lower Taiwan’s tariff barriers

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    WASHINGTON — The Trump administration reached a trade deal with Taiwan on Thursday, with Taiwan agreeing to remove or reduce 99% of its tariff barriers, the office of the U.S. Trade Representative said.

    The agreement comes as the U.S. remains reliant on Taiwan for its production of computer chips, the exporting of which contributed to a trade imbalance of nearly $127 billion during the first 11 months of 2025, according to the Census Bureau.

    Most of Taiwan’s exports to the U.S. will be taxed at a 15% rate, the USTR’s office said. The 15% rate is the same as that levied on other U.S. trading partners in the Asia-Pacific region, such as Japan and South Korea.

    Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick attended the signing of the reciprocal agreement, which occurred under the auspices of the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States. Taiwan’s Vice Premier Li-chiun Cheng and its government minister Jen-ni Yang also attended the signing.

    “President Trump’s leadership in the Asia-Pacific region continues to generate prosperous trade ties for the United States with important partners across Asia, while further advancing the economic and national security interests of the American people,” Greer said in a statement.

    The Taiwanese government said in a statement that the tariff rate set in the agreement allows its companies to compete on a level field with Japan, South Korea and the European Union. It also said the agreement “eliminated” the disadvantage from a lack of a free trade agreement between Taiwan and the U.S.

    The deal comes ahead of President Donald Trump’s planned visit to China in April and suggests a deepening economic relationship between the U.S. and Taiwan.

    Taiwan is a self-ruled democracy that China claims as its own territory, to be annexed by force if necessary. Beijing prohibits all countries it has diplomatic relations with — including the U.S. — from having formal ties with Taipei.

    Under the deal, Taiwan will make investments of $250 billion in U.S. industries, such as computer chips, artificial intelligence applications and energy. The Taiwanese government says it will provide up to an additional $250 billion in credit guarantees to help smaller businesses invest in the U.S.

    The agreement would make it easier for the U.S. to sell autos, pharmaceutical drugs and food products in Taiwan. But the critical component might be that Taiwanese companies would invest in the production of computer chips in the U.S., possibly helping to ease the trade imbalance.

    The investments helped enable the U.S. to reduce its planned tariffs from as much as 32% initially to 15%.

    Taiwan’s government said it will submit the deal and investment plans to its legislature for approval.

    The U.S. side said the deal with Taiwan would help create several “world-class” industrial parks in America in order to help build up domestic manufacturing of advanced technologies such as chips. The Commerce Department in January described it as “a historic trade deal that will drive a massive reshoring of America’s semiconductor sector.”

    In return, the U.S. would give preferential treatment to Taiwan regarding the possible tariffs stemming from a Section 232 investigation of the importing of computer chips and semiconductor manufacturing equipment.

    TSMC, the chip-making giant, is expected to be the key investor. It has committed to $165 billion in investments in the U.S., including not only fabrication plants but also a major research and development center that would help build a supply chain to power U.S. artificial intelligence ambitions. Major U.S. tech companies such as Nvidia and AMD rely on TSMC for manufacturing highly advanced chips.

    Taiwan also said the investments will be two-way, with U.S. companies also investing in key Taiwanese industries. Nvidia this week signed a land deal in Taipei to build a headquarters office there.

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  • Average US long-term mortgage rate barely budges, holding near 6%

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    The average long-term U.S. mortgage rate barely budged this week, staying close to 6% as the spring homebuying season nears.

    The benchmark 30-year fixed rate mortgage rate edged up to 6.11%, essentially flat compared to last week when it was 6.1%, mortgage buyer Freddie Mac said Thursday. One year ago, the rate averaged 6.89%.

    This is the latest increase since the average rate eased three weeks ago to 6.06%, its lowest level in more than three years.

    Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also ticked up this week. That average rate inched up to 5.5% from 5.49% last week. A year ago, it was at 6.05%, Freddie Mac said.

    Mortgage rates are influenced by several factors, from the Federal Reserve’s interest rate policy decisions to bond market investors’ expectations for the economy and inflation. They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.

    The 10-year Treasury yield was at 4.21% at midday Thursday, down from 4.23% a week ago.

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  • Trump administration presses efforts to ensure supply of critical minerals outside of China

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    WASHINGTON — The Trump administration is expected to unveil its grandest plan yet to rebuild supply chains of critical minerals needed for everything from jet engines to smartphones, likely through purchase agreements with partners on top of creating a $12 billion U.S. strategic reserve to help counter China’s dominance.

    Vice President JD Vance is set to deliver a keynote address Wednesday at a meeting that Secretary of State Marco Rubio is hosting with officials from several dozen European, Asian and African nations. The U.S. is expected to sign deals on supply chain logistics, though details have not yet been revealed. Rubio met Tuesday with foreign ministers from South Korea and India to discuss critical minerals mining and processing.

    The meeting and expected agreements will come just two days after President Donald Trump announced “Project Vault,” or a stockpile of critical minerals to be funded with a $10 billion loan from the U.S. Export and Import Bank and nearly $1.67 billion in private capital.

    The Trump administration is making such bold moves after China, which controls 70% of the world’s rare earths mining and 90% of the processing, choked off the flow of the elements in response to Trump’s tariff war. The two superpowers are in a one-year truce after Trump and Chinese President Xi Jinping met in October and agreed to pull back on high tariffs and stepped up rare earth restrictions.

    But China’s limits remain tighter than they were before Trump took office.

    “We don’t want to ever go through what we went through a year ago,” Trump said on Monday when announcing Project Vault.

    Other countries might join with the Trump administration in buying up critical minerals and taking other steps to spur industry development because the trade war revealed how vulnerable Western counties are to China, said Pini Althaus, who founded Oklahoma rare earth miner USA Rare Earth in 2019.

    “They’re looking at setting up sort of a buyers’ club, if you will,” said Althaus, who now is working to develop new mines in Kazakhstan and Uzbekistan as CEO of Cove Capital. “The key producers and key consumers of critical minerals will sort of get together and work on pricing structures, floor pricing and other things.”

    The government last week also made its fourth direct investment in an American critical minerals producer when it extended $1.6 billion to USA Rare Earth in exchange for stock and a repayment agreement.

    Seeking government funding these days is like meeting with private equity investors because officials are scrutinizing companies to ensure anyone they invest in can deliver, Althaus said. And the government is demanding terms designed to generate a return for taxpayers as loans are repaid and stock prices increase, he said.

    Meanwhile, the U.S. Export-Import Bank’s board this week approved the $10 billion loan — the largest in its history — to help finance the setup of the U.S. Strategic Critical Minerals Reserve. It is tasked with ensuring access to critical minerals and related products for manufacturers, including battery maker Clarios, energy equipment manufacturer GE Vernova, digital storage company Western Digital and aerospace giant Boeing, according to the policy bank.

    Bank President and Chairman John Jovanovic told CNBC that the project creates a public-private partnership formula that “is uniquely suited and puts America’s best foot forward.”

    “What it does is it creates a scenario where there are no free riders. Everybody pitches in to solve this huge problem,” he said.

    Manufacturers, which benefit the most from the reserve, are making a long-term financial commitment, Jovanovic said, while the government loan spurs private investments.

    The stockpile strategy may help spark a “more organic” pricing model that excludes China, which has used its dominance to flood the market with lower-priced products to squeeze out competitors, said Wade Senti, president of the U.S. permanent magnet company AML.

    The Trump administration also has injected public money directly into the sector. The Pentagon has shelled out nearly $5 billion over the past year to help ensure its access to the materials after the trade war laid bare just how beholden the U.S. is to China.

    A bipartisan group of lawmakers last month proposed creating a new agency with $2.5 billion to spur production of rare earths and the other critical minerals. The lawmakers applauded the steps by the Trump administration.

    “It’s a clear sign that there is bipartisan support for securing a robust domestic supply of critical minerals that both reduces our reliance on China and stabilizes the market,” Sens. Jeanne Shaheen, D-N.H., and Todd Young, R-Ind., said in a joint statement Tuesday.

    Building up a stockpile will help American companies weather future rare earth supply disruptions, but that will likely be a long-term effort because the materials are still scarce right now with China’s restrictions, said David Abraham, a rare earths expert who has followed the industry for decades and wrote the book “The Elements of Power.”

    The Trump administration has focused on reinvigorating critical minerals production, but Abraham said it’s also important to encourage development of manufacturing that will use them. He noted that Trump’s decisions to cut incentives for electric vehicles and wind turbines have undercut demand for these elements in America.

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  • US futures and world shares slip as worries over Trump’s Fed chief pick and AI weigh on markets

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    U.S. futures and world shares skidded on Monday as worries over President Donald Trump’s nominee to be the next Federal Reserve chair amplified jitters over a possible bubble in the artificial intelligence boom.

    South Korea’s exchange, which is heavily influenced by tech-related developments, briefly suspended trading as its benchmark Kospi bounced, closing 5.3% lower at 4,949.67. Samsung Electronics gave up 6.3%, while chip maker SK Hynix sank 8.7%.

    The Kospi has been forging records for weeks as big tech companies piggybacked on the AI craze with deals with major players like chip maker Nvidia and OpenAI.

    In early European trading, Germany’s DAX edged less than 0.1% lower to 24,528.57. The CAC 40 in Paris shed 0.2% to 8,108.56, while Britain’s FTSE 100 declined 0.3% to 10,195.88.

    The future for the S&P 500 sank 0.7%, while that for the Dow Jones Industrial Average fell 0.4%.

    Markets took a hit as investors considered how Kevin Warsh, Trump’s nominee to lead the Federal Reserve after Fed Chair Jerome Powell’s term ends in May might handle interest rates.

    Warsh’s nomination requires Senate approval. But financial markets fear the Fed may lose some of its independence because of Trump, who has pushed hard for more and faster rate cuts. That fear has helped catapult skyward the price of gold and weaken the U.S. dollar’s value over the last year.

    “People do not get handed the keys to the most powerful central bank on earth because they plan to drive in the opposite direction of the people who gave them the keys,” Stephen Innes of SPI Asset Management said in a commentary.

    Early Monday, the price of gold fell 1.9%, while silver bounced back slightly, gaining 0.2%. Both plunged Friday as record runs in precious metals markets ground to a halt.

    On Friday, the price of gold dropped 11.4%, suddenly losing momentum after a tremendous rally where it roughly doubled over 12 months. It topped $5,000 for the first time on Jan. 26 and was around $5,600 at one point on Thursday.

    Silver, which had been on a similar, jaw-dropping tear, plunged 31.4%.

    U.S. benchmark crude oil lost $3.46 to $61.75 per barrel, while Brent crude, the international standard, fell $3.47 to $65.85 per barrel.

    Speaking to reporters during the weekend, Trump said Iran should negotiate a “satisfactory” deal to prevent the Middle Eastern country from getting any nuclear weapons.

    “I don’t know that they will. But they are talking to us. Seriously talking to us,” he said.

    That comment apparently assuaged some worries over potential disruptions to oil supplies that had pushed prices higher, analysts said.

    In Tokyo, the Nikkei 225 gave up early gains, sinking 1.3% to 52,655.18.

    Hong Kong’s Hang Seng dropped 2.2% to 26,775.57, while the Shanghai Composite index sank 2.5% to 4,015.75.

    In Australia, the S&P/ASX 200 fell 1% to 8,778.60.

    Taiwan’s Taiex lost 1.4%.

    On Friday, the S&P 500 dropped 0.4% and the Dow lost 0.4%. The Nasdaq composite lost 0.9%.

    The Fed chair has a big influence on the economy and markets worldwide by helping to dictate where the U.S. central bank moves interest rates. That affects prices for all kinds of investments, as the Fed tries to keep the U.S. job market humming without letting inflation get out of control.

    A report released Friday showed U.S. inflation at the wholesale level was hotter last month than economists expected. That could put pressure on the Fed to keep interest rates steady for a while instead of cutting them, as it did late last year.

    The longtime assumption has been that the Fed should operate separately from the rest of Washington so that it can make moves that are painful in the short term but necessary for the long term. To get inflation down to the Fed’s goal of 2%, for example, may require the unpopular choice to keep interest rates high and grind down on the economy for a while.

    In other action early Monday, the dollar fell to 154.88 Japanese yen from 154.94 yen. The euro was unchanged at $1.1853.

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  • Trump stirs talk of ‘new world order’

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    WASHINGTON — President Donald Trump gives. And he takes away.

    Offended by Canadian Prime Minister Mark Carney’s increasingly assertive posture toward the U.S., Trump revoked an invitation to join his Board of Peace. Many Western allies are suspicious of the organization, which is chaired by Trump and was initially formed to focus on maintaining the ceasefire in Israel’s war with Hamas but has grown into something skeptics fear could rival the United Nations.

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    By STEVEN SLOAN – Associated Press

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  • In their words: European governments criticize Trump’s tariff threats over Greenland

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    COPENHAGEN, Denmark — European governments blasted U.S. President Donald Trump’s announcement that eight countries will face 10% tariff for opposing American control of Greenland beginning next month.

    Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland are on Trump’s list, though it was not immediately clear if the tariffs would impact the European Union as a bloc.

    Trump’s threat sets up a potentially dangerous test of U.S. partnerships in Europe. The U.S. president indicated the tariffs were retaliation for the deployment of symbolic levels of troops from the European countries to Greenland. Europeans said the troops were sent in response to Trump’s call for strengthened Arctic security.

    Here’s a look at what the governments of the eight countries said:

    “We agree with the U.S. that we need to do more since the Arctic is no longer a low tension area,” Danish Foreign Minister Lars Løkke Rasmussen said in a statement. “That’s exactly why we and NATO partners are stepping up in full transparency with our American allies.”

    “Threats have no place among allies,” Norwegian Prime Minister Jonas Gahr Støre wrote on social media. “Norway’s position is firm: Greenland is part of the Kingdom of Denmark. Norway fully supports the sovereignty of the Kingdom of Denmark. There is broad agreement in NATO on the need to strengthen security in the Arctic, including in Greenland.”

    “We will not allow ourselves to be blackmailed,” Swedish Prime Minister Ulf Kristersson wrote on social media. “I will always stand up for my country, and for our allied neighbors. This is an EU issue that concerns many more countries than those now being singled out.”

    “No intimidation or threats will influence us, whether in Ukraine, Greenland or anywhere else in the world when we are faced with such situations,” French President Emmanuel Macron wrote on social media. “Tariff threats are unacceptable and have no place in this context.”

    “The Federal Government has taken note of the statements made by the U.S. President,” German federal government spokesperson Stefan Kornelius wrote on social media. “It is in closest coordination with its European partners. Together, we will decide on appropriate responses at the appropriate time.”

    “Our position on Greenland is very clear — it is part of the Kingdom of Denmark and its future is a matter for the Greenlanders and the Danes,” British Prime Minister Keir Starmer said in a statement. “We have also made clear that Arctic security matters for the whole of NATO and allies should all do more together to address the threat from Russia across different parts of the Arctic. Applying tariffs on allies for pursuing the collective security of NATO allies is completely wrong.”

    “It’s inappropriate, because we’re not in favor of using trade tariffs in situations that have nothing to do with trade,” Dutch Foreign Minister David van Weel said during an interview on current affairs show “WNL op Zondag.” “As allies, I don’t think this is how you should treat each other; not seek dialogue with each other, but try to put pressure on each other. So no, I’m very unhappy about this.”

    “Among allies, issues are best resolved through discussion, not through pressure,” Finnish President Alexander Stubb, who famously bonded with Trump over their shared love of golf, wrote on social media. “Tariffs would undermine the transatlantic relationship and risk a dangerous downward spiral.”

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  • Asian shares are mixed and US futures edge higher after Wall Street steadies

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    BANGKOK — Asian shares were mixed Friday after Wall Street broke a two-day losing streak and edged back toward record levels, helped by advances for Big Tech companies like Nvidia.

    U.S. futures advanced and oil prices slipped.

    Tech shares regained momentum after Taiwan Semiconductor Manufacturing Co., a major supplier to the industry, reported strong profits and investment plans. TSMC gained 3% early Friday and Taiwan’s benchmark Taiex was up 1.9%.

    The frenzy around AI has sent Nvidia and other superstar stocks to dizzying heights, stirring criticism that their prices had shot too high. Nvidia rose 2.1% on Thursday after TSMC’s Chief Financial Officer Wendell Huang said it’s seeing “continued strong demand” in an encouraging signal for the entire AI industry.

    TSMC’s stock that trades in the United States rose 4.4% on Thursday.

    The gains also followed the signing of a U.S.-Taiwan trade deal involving $250 billion in new investments by Taiwan’s semiconductor and tech companies in the U.S. In exchange, the Trump administration will cut tariffs on Taiwanese goods. The deal aims to establish a strategic economic partnership and upgrade U.S. industrial infrastructure.

    In Tokyo, the Nikkei 225 shed 0.3% to 53,936.17, while Hong Kong’s Hang Seng gave up 0.6% to 26,770.56. The Shanghai Composite index lost 0.3% to 4,101.91.

    China is due to report its economic growth data for 2025 on Monday. Forecasts are for the economy to have expanded at about a 4.5% annual pace, slowing from earlier in the year.

    Elsewhere in Asia, South Korea’s Kospi rose 0.9% to a record 4,840.74. The benchmark has been trading at record highs for weeks, helped by a recovery in confidence in AI-related shares. Samsung Electronics gained 3.5%.

    In Australia, the S&P/ASX 200 gained 0.5% to 8,903.90. India’s Sensex rose 0.4%.

    Wall Street steadied on Thursday as stocks related to artificial-intelligence bounced back.

    The S&P 500 rose 0.3% and the Dow Jones Industrial Average added 0.6%. The Nasdaq composite rose 0.2% to 23,530.02.

    Easing oil prices also helped to calm investors’ jitters.

    Early Friday, a barrel of benchmark U.S. crude cost $59.21, up 14 cents from a day earlier. It sank 4.6% on Thursday after Trump said he had heard “on good authority” that plans for executions in Iran had stopped amid widespread protests against the country’s leadership.

    Brent crude, the international standard, added 10 cents to $63.86 per barrel. It dropped 4.1% on Thursday.

    Financial markets took Trump’s comments about Iran as a signal that tensions flaring above some of the world’s largest oil deposits could ease, which in turn could lower the possibility of disruptions to oil supplies.

    Earnings reporting season for big U.S. companies continued to pick up pace, meanwhile, with several more big financial companies delivering their results for the last three months of 2025.

    “As we dive into the heart of earnings season in the coming weeks, tech results will be scrutinized in far greater detail.,” Ipek Ozkardeskaya of Swissquote said in a commentary.

    “Concerns around circular AI deals, leverage and delayed returns on investment remain front of mind for investors. These are compounded by rising electricity and metals costs, higher memory-chip prices, and the risk of supply disruptions,” she said.

    BlackRock, the giant that’s now overseeing more than $14 trillion in investments, rose 5.9% after reporting stronger profit and revenue than analysts expected.

    Encouraging reports on the U.S. economy contributed to the upbeat mood.

    One said fewer workers applied for unemployment benefits last week in an indication layoffs may be slowing. Other reports said manufacturing was significantly stronger in the mid-Atlantic region and in New York state than economists had forecast.

    The stronger-than-expected data on the U.S. economy helped stocks of smaller companies to lead the market. Their profits can be tied more closely to the strength of the U.S. economy than their bigger, multinational rivals, and the Russell 2000 index rose 0.9%.

    In other dealings early Friday, the U.S. dollar fell to 158.19 Japanese yen from 158.63 yen.

    The euro rose to $1.1614 from $1.1609.

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  • People inside Iran describe heavy security in first calls to outside world

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    DUBAI, United Arab Emirates — Iranians could call abroad on mobile phones Tuesday for the first time since communications were halted during a crackdown on nationwide protests in which activists said at least 646 people have been killed.

    Several people in Tehran were able to call The Associated Press and speak to a journalist there. The AP bureau in Dubai, United Arab Emirates, was unable to call those numbers back. The witnesses said SMS text messaging still was down and that internet users in Iran could connect to government-approved websites locally but nothing abroad.

    The witnesses gave a brief glimpse into life on the streets of the Iranian capital over the four and a half days of being cut off from the world. They described seeing a heavy security presence in central Tehran.

    Anti-riot police officers, wearing helmets and body armor, carried batons, shields, shotguns and tear gas launchers. They stood watch at major intersections. Nearby, the witnesses saw members of the Revolutionary Guard’s all-volunteer Basij force, who similarly carried firearms and batons. Security officials in plainclothes were visible in public spaces as well.

    Several banks and government offices were burned during the unrest, they said. ATMs had been smashed and banks struggled to complete transactions without the internet, the witnesses added.

    However, shops were open, though there was little foot traffic in the capital. Tehran’s Grand Bazaar, where the demonstrations began Dec. 28, was to open Tuesday. However, a witness described speaking to multiple shopkeepers who said the security forces ordered them to reopen no matter what. Iranian state media had not acknowledged that order.

    The witnesses spoke on condition of anonymity for fear of reprisal.

    U.S. President Donald Trump has said Iran wants to negotiate with Washington after his threat to strike the Islamic Republic over its crackdown.

    Iranian Foreign Minister Abbas Araghchi, speaking to the Qatar-funded satellite news network Al Jazeera in an interview aired Monday night, said he continued to communicate with U.S. envoy Steve Witkoff.

    The communication “continued before and after the protests and are still ongoing,” Araghchi said. However, “Washington’s proposed ideas and threats against our country are incompatible.”

    White House press secretary Karoline Leavitt said Iran’s public rhetoric diverges from the private messaging the administration has received from Tehran in recent days.

    “I think the president has an interest in exploring those messages,” Leavitt said. “However, with that said, the president has shown he’s unafraid to use military options if and when he deems necessary, and nobody knows that better than Iran.”

    Meanwhile, pro-government demonstrators flooded the streets Monday in support of the theocracy, a show of force after days of protests directly challenging the rule of 86-year-old Supreme Leader Ayatollah Ali Khamenei. Iranian state television aired chants from the crowd, which appeared to number in the tens of thousands, who shouted “Death to America!” and “Death to Israel!”

    Others cried out, “Death to the enemies of God!” Iran’s attorney general has warned that anyone taking part in protests will be considered an “enemy of God,” a death-penalty charge.

    Trump announced Monday that countries doing business with Iran will face 25% tariffs from the United States. Trump announced the tariffs in a social media posting, saying they would be “effective immediately.”

    It was action against Iran for the protest crackdown from Trump, who believes exacting tariffs can be a useful tool in prodding friends and foes on the global stage to bend to his will.

    Brazil, China, Russia, Turkey and the United Arab Emirates are among economies that do business with Tehran.

    Trump said Sunday that his administration was in talks to set up a meeting with Tehran, but cautioned that he may have to act first as reports of the death toll in Iran mount and the government continues to arrest protesters.

    “I think they’re tired of being beat up by the United States,” Trump said. “Iran wants to negotiate.”

    Iran, through the country’s parliamentary speaker, warned Sunday that the U.S. military and Israel would be “legitimate targets” if Washington uses force to protect demonstrators.

    More than 10,700 people also have been detained over the two weeks of protests, said the U.S.-based Human Rights Activists News Agency, which has been accurate in previous unrest in recent years and gave the latest death toll early Tuesday. It relies on supporters in Iran crosschecking information. It said 512 of the dead were protesters and 134 were security force members.

    With the internet down in Iran, gauging the demonstrations from abroad has grown more difficult. The Associated Press has been unable to independently assess the toll. Iran’s government hasn’t offered overall casualty figures.

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  • Consumer prices likely stayed elevated in December as data recovers from shutdown

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    WASHINGTON — Inflation likely remained elevated last month as the cost of electricity, groceries, and clothing may have jumped and continued to pressure consumers’ wallets.

    The Labor Department is expected to report that consumer prices rose 2.6% in December compared with a year earlier, according to economists’ estimates compiled by data provider FactSet. The yearly rate would be down from 2.7% in November. Monthly prices, however, are expected to rise 0.3% in December, faster than is consistent with the Federal Reserve’s 2% inflation goal.

    The figures are harder to predict this month, however, because the six-week government shutdown last fall suspended the collection of price data used to compile the inflation rate. Some economists expect the December figures will show a bigger jump in inflation as the data collection process gets back to normal.

    Core prices, which exclude the volatile food and energy categories, are also expected to rise 0.3% in December from the previous month, and 2.7% from a year earlier. The yearly core figure would be an increase from 2.6% in November.

    In November, annual inflation fell from 3% in September to 2.7%, in part because of quirks in November’s data. (The government never calculated a yearly figure for October). Most prices were collected in the second half of November, after the government reopened, when holiday discounts kicked in, which may have biased November inflation lower.

    And since rental prices weren’t fully collected in October, the agency that prepares the inflation reports used placeholder estimates that may have biased prices lower, economists said.

    Inflation has come down significantly from the four-decade peak of 9.1% that it reached in June 2022, but it has been stubbornly close to 3% since late 2023. The cost of necessities such as groceries is about 25% higher than it was before the pandemic, and other necessities such as rent and clothing have also gotten more expensive, fueling dissatisfaction with the economy that both President Donald Trump and former President Joe Biden have sought to address, though with limited success.

    The Federal Reserve has struggled to balance its goal of fighting inflation by keeping borrowing costs high, while also supporting hiring by cutting interest rates when unemployment worsens. As long as inflation remains above its target of 2%, the Fed will likely be reluctant to cut rates much more.

    The Fed reduced its key rate by a quarter-point in December, but Chair Jerome Powell, at a press conference explaining its decision, said the Fed would probably hold off on further cuts to see how the economy evolves.

    The 19 members of the Fed’s interest-rate setting committee have been sharply divided for months over whether to cut its rate further, or keep it at its curent level of about 3.6% to combat inflation.

    Trump, meanwhile, has harshly criticized the Fed for not cutting its key short-term rate more sharply, a move he has said would reduce mortgage rates and the government’s borrowing costs for its huge debt pile. Yet the Fed doesn’t directly control mortgage rates, which are set by financial markets.

    In a move that cast a shadow over the ability of the Fed to fight inflation in the future, the Department of Justice served the central bank last Friday with subpoenas related to Powell’s congressional testimony in June about a $2.5 billion renovation of two Fed office buildings. Trump administration officials have suggested that Powell either lied about changes to the building or altered plans in ways that are inconsistent with those approved by planning commissions.

    In a blunt response, Powell said Sunday those claims were “pretexts” for an effort by the White House to assert more control over the Fed.

    “The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” Powell said. “This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation.”

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  • US futures slip while world shares are mixed as Fed chair Powell faces legal threat

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    BANGKOK — U.S. futures sank Monday after Federal Reserve Chair Jerome Powell said the Department of Justice had served the central bank with subpoenas.

    Markets in Europe were mostly lower after a broad rally in Asia.

    The threat of a criminal indictment over Powell’s testimony about the Fed’s building renovations is the latest escalation in President Donald Trump’s feud with the Fed. Trump has criticized the $2.5 billion renovation of two office buildings as excessive.

    Markets appeared to take the news in stride, although gold and other precious metals often used as a hedge in times of uncertainty climbed.

    The future for the S&P 500 declined 0.7% and that for the Dow Jones Industrial Average fell 0.6%. The future for the Nasdaq composite index slipped 1.1%.

    In Germany, the DAX was nearly flat at 25,265.46, while the CAC 40 in Paris shed 0.5% to 8,319.03. Britain’s FTSE 100 edged 0.1% lower, to 10,114.82.

    In Asian trading, Hong Kong’s Hang Seng gained 1.4% to 26,608.48, while the Shanghai Composite index jumped 1.1% to 4,165.29 after reports that Chinese leaders were preparing more help for the economy.

    Tokyo’s markets were closed for a holiday.

    In South Korea, the Kospi added 0.8% to 4,624.79, while Australia’s S&P/ASX 200 gained 0.5% to 8,759.40.

    Taiwan’s Taiex gained 0.9%.

    On Friday, U.S. stocks hit records following a mixed report on the U.S. job market, one that may delay another cut to interest rates by the Federal Reserve but does not slam the door on it.

    Powell’s term as chair ends in May, and Trump administration officials have signaled that he could name a potential replacement this month. Trump has also sought to fire Fed governor Lisa Cook.

    In a brief interview with NBC News Sunday, Trump insisted he didn’t know about the investigation into Powell. When asked if the investigation is intended to pressure Powell on rates, Trump said, “No. I wouldn’t even think of doing it that way.”

    The S&P 500 climbed 0.6% to 6,966.28, topping its prior all-time high set earlier in the week. The Dow Jones Industrial Average added 0.5% to 49,504.07, and likewise set a record.

    The Nasdaq composite led the market with a 0.8% gain, closing at 23,671.35.

    The U.S. Labor Department said employers hired fewer workers during December than economists expected, though the unemployment rate improved and was better than expected. It reinforced how the U.S. job market may be in a “ low-hire, low-fire” state and may hopefully avoid a recession.

    An update on U.S. inflation at the consumer level is due Tuesday, followed by a report on wholesale prices on Wednesday.

    In other dealings early Monday, the dollar fell to 157.77 Japanese yen from 158.03 yen.

    The euro climbed to $1.1690 from $1.1635 late Friday.

    U.S. benchmark crude oil gave up early gains, falling 12 cents to $59.00 per barrel. Brent crude, the international standard, shed 9 cents to $63.25 per barrel.

    The price of gold rose 2.3% and the price of silver jumped 6.3%. Copper was up 1.4%.

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  • Turkmenistan, one of the world’s most closed nations, legalizes crypto mining and exchanges

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    ASHGABAT, Turkmenistan — ASHGABAT, Turkmenistan (AP) — Turkmenistan, one of the world’s most isolated nations, officially legalized mining and exchanging cryptocurrency on Thursday in a major shift for the country’s tightly controlled, gas-dependent economy.

    Signed by President Serdar Berdimuhamedov, the legislation regulating virtual assets brings cryptocurrencies under civil law and establishes a licensing scheme for cryptocurrency exchanges overseen by the country’s central bank.

    However, digital currencies will still not be recognized as a means of payment, currency, or security. Turkmenistan’s internet also remains tightly regulated and controlled by the government.

    Turkmenistan, a former Soviet country in Central Asia, relies heavily on the export of its vast natural gas reserves to support its economy. China is the country’s main importer of gas, and Turkmenistan is currently working on a pipeline to supply gas to Afghanistan, Pakistan, and India.

    Turkmenistan also adopted a law introducing electronic visas in April last year, aimed at simplifying entry for foreigners. After gaining independence in 1991, the autocratic nation typically placed strict entry requirements on would-be visitors, with many visa applications turned down for unclear reasons.

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  • Trump delays increased tariffs on upholstered furniture, kitchen cabinets and vanities for a year

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    President Donald Trump signed a New Year’s Eve proclamation delaying increased tariffs on upholstered furniture, kitchen cabinets and vanities for a year, citing ongoing trade talks

    WASHINGTON — President Donald Trump signed a New Year’s Eve proclamation delaying increased tariffs on upholstered furniture, kitchen cabinets and vanities for a year, citing ongoing trade talks.

    Trump’s order signed Wednesday keeps in place a 25% tariff he imposed in September on those goods, but delays for another year a 30% tariff on upholstered furniture and 50% tariff on kitchen cabinets and vanities.

    The increases, which were set to take effect Jan. 1, come as the Republican president instituted a broad swath of taxes on imported goods to address trade imbalances and other issues.

    The president has said the tariffs on furniture are needed to “bolster American industry and protect national security.”

    The delay is the latest in the roller coaster of Trump’s tariffs wars since he returned to office last year, with the president announcing levies at times without warning and then delaying or pulling back from them just as abruptly.

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  • Global shares trade mixed with some exchanges closed ahead of the New Year

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    TOKYO — Global stock markets, including Germany, Japan and South Korea, were closed Wednesday for the yearend and New Year’s holidays, while trading was mixed in those bourses that remained open.

    France’s CAC 40 lost 0.5% in early trading to 8,130.14, while Britain’s FTSE 100 shed 0.2% to 9,923.59.

    Earlier in Asia, the Hang Seng index dipped 0.9% to 25,630.54, while the Shanghai Composite rose 0.1% to 3,968.84. The Taiex in Taiwan jumped 0.9% to 28,963.60. In Australia, Sydney’s S&P/ASX 200 dipped less than 0.1% to 8,714.30.

    Tokyo trading was set to be closed for the New Year’s holidays on Thursday and Friday and scheduled to reopen on Monday. In South Korea, trading was scheduled to be closed on Thursday.

    Trading will remain open Wednesday on Wall Street but will be closed Thursday.

    In energy trading, U.S. crude fell 16 cents to $57.79 per barrel. The price of Brent crude, the international standard, slipped 16 cents to $61.176 per barrel.

    The continued impact of a wide-ranging U.S.-led trade war threatens to add more fuel to inflation in the U.S. The Fed can cut interest rates to help the economy weather a slower jobs market. But that could add more fuel to inflation, which is still solidly above the Fed’s 2% target.

    The Fed has signaled more caution moving forward. Minutes from its December meeting reflect the divisions within the central bank as it deals with uncertainty about the threats facing the economy.

    Wall Street is betting that the Fed will hold interest rates steady at its next meeting in January.

    Sung Won Sohn, professor of finance and economics at Loyola Marymount University, believes uncertainty is brewing for global markets because of inflation, labor shortages and questions about where interest rates might be headed.

    “Central banks must tread carefully, and financial markets will likely experience continued volatility as expectations shift,” he said.

    “For businesses, investors, and policymakers alike, flexibility, risk management, and close attention to economic signals will be essential in navigating the challenges ahead.”

    In currency trading, the U.S. dollar rose to 156.55 Japanese yen from 156.36 yen. The euro cost $1.1727, down from $1.1744.

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    AP Business Writer Damian J. Troise contributed to this report.

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  • Iran appoints new central bank governor after record currency fall and mass protests

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    TEHRAN, Iran — Iran on Wednesday appointed a new governor to the central bank after the former one resigned following a record currency fall against the U.S. dollar that sparked large protests.

    The plummeting of the rial, Iran’s currency, sparked the largest protests in the country in three years, with rallies that began Sunday and continued until Tuesday.

    A report by the official IRNA news agency said President Masoud Pezeshkian’s Cabinet appointed Abdolnasser Hemmati, a former economics minister, as new governor of the Central Bank of the Islamic Republic of Iran. He replaces Mohammad Reza Farzin, who resigned on Monday.

    Experts say a 40% inflation rate led to public discontent. The U.S. dollar traded at 1.38 million rials on Wednesday, compared to 430,000 when Farzin took office in 2022. Many traders and shopkeepers closed their businesses and took to the streets of Tehran and other cities to protest.

    The new governor’s agenda will included a focus on controlling inflation and strengthening the currency, as well as addressing the mismanagement of banks, the government’s spokeswoman Fatemeh Mohajerani wrote on X.

    Hemmati, 68, previously served as minister of economic and financial affairs under Pezeshkian. In March parliament dismissed Hemmati for alleged mismanagement and accusations his policies hurt the strength of Iran’s rial against hard currencies.

    A combination of the currency’s rapid depreciation and inflationary pressure has pushed up the prices of food and other daily necessities, adding to strain on household budgets already under pressure due to Western sanctions on Iran over its nuclear program.

    Inflation is expected to worsen with a gasoline price change introduced in recent weeks.

    Iran’s currency was trading at 32,000 rials to the dollar at the time of the 2015 nuclear accord that lifted international sanctions in exchange for tight controls on Iran’s nuclear program. That deal unraveled after President Donald Trump unilaterally withdrew the United States from it in 2018, during his first term.

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  • Asian shares trade mixed with some exchanges closed ahead of the New Year

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    TOKYO — Major Asian stock markets, including Tokyo and Seoul, were closed Wednesday for the yearend and New Year’s holidays, while trading was mixed in those bourses that remained open.

    In China, the Hang Seng index dipped 0.9% to 25,630.54, while the Shanghai Composite rose 0.1% to 3,969.75. The Taiex in Taiwan jumped 0.9% to 28,963.60.

    In Australia, Sydney’s S&P/ASX 200 dipped less than 0.1% to 8,714.30.

    Tokyo trading was set to be closed for the New Year’s holidays on Thursday and Friday and scheduled to reopen on Monday. In South Korea, trading was scheduled to be closed on Thursday.

    Trading will remain open Wednesday on Wall Street but will be closed Thursday. Trading volume was thin Tuesday.

    The S&P 500 fell 9.50 points, or 0.1%, to 6,894.24. Even with three straight days of small losses, the S&P 500 is on track for an annual gain of more than 17%.

    The Dow Jones Industrial Average fell 94.87 points, or 0.2%, to 48,367.06. The Nasdaq composite fell 55.27 points, or 0.2%, to 23,419.08.

    The biggest weights on the market remained technology companies, especially those focused on advancements for artificial intelligence.

    Nvidia fell 0.4% and Apple fell 0.2%. Both companies have outsized values that have a greater overall impact on the market’s broader direction.

    On the winning side, Facebook parent Meta Platforms rose 1.1%. The company is buying artificial intelligence startup Manus as it continues an aggressive push to amp up AI offerings across its platforms.

    The more notable action was in the commodities markets. The price of gold rose 1.4% to 4,386.30 per ounce. Silver prices gained 10.9%. Prices for gold and silver slumped Monday when the Chicago Mercantile Exchange, one of the largest trading floors for commodities, asked traders to put up more cash to make bets on precious metals. Prices for both metals have surged in 2025 on a mix of economic worries and supply deficits.

    Copper rose 4.4% and is up more 40% for the year on strong demand. The base metal is critical to global energy infrastructure, and demand is expected to keep growing as the development of artificial intelligence technology puts more of a strain on data centers and the energy grid.

    In energy trading, U.S. crude fell 7 cents to $57.88 per barrel. The price of Brent crude, the international standard, slipped 7 cents to $61.26 per barrel.

    Treasury yields were mixed in the bond market. The yield on the 10-year Treasury rose to 4.12% from 4.11% late Monday. The yield on the two-year Treasury, which moves more closely with expectations for what the Federal Reserve will do, held steady at 3.45% from late Monday.

    Overall, Treasury yields have fallen significantly through the year, partly because of the market’s expectations for a shift in interest rate policy at the Fed. The central bank cut interest rates three times late in 2025, most recently at its meeting earlier in December.

    The central bank has been dealing with a more complex economic picture. Consumer confidence has been weakening throughout the year as inflation squeezes consumers and businesses. The continued impact of a wide-ranging U.S.-led trade war threatens to add more fuel to inflation.

    Inflation remains stubbornly high while the jobs market slows down. The Fed can cut interest rates to help the economy weather a slower jobs market. But that could add more fuel to inflation, which is still solidly above the Fed’s 2% target. Hotter inflation could stunt economic growth.

    The Fed has signaled more caution moving forward. Minutes from its December meeting reflect the divisions within the central bank as it deals with uncertainty about the threats facing the economy.

    Wall Street is betting that the Fed will hold interest rates steady at its next meeting in January.

    In currency trading, the U.S. dollar rose to 156.60 Japanese yen from 156.36 yen. The euro cost $1.1740, little changed from $1.1744.

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    AP Business Writer Damian J. Troise contributed to this report.

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