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Tag: Government policy

  • Japan’s new leader faces diplomatic gauntlet with Trump, China and regional summits

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    TOKYO — Just days after taking office, Japan’s new leader faces a series of back-to-back foreign policy tests, with a meeting with U.S. President Donald Trump in Tokyo sandwiched between Asia-region summits in Malaysia and South Korea.

    Prime Minister Sanae Takaichi, with limited experience in international affairs, will have to manage Trump’s demands and unpredictability and China’s wariness of her strong support for a military build-up and her right-wing views on Japan’s invasion of China before and during World War II.

    She arrives in Malaysia on Saturday for meetings with Southeast Asian leaders, then returns to Japan to meet Trump before heading to South Korea for the Asia-Pacific Economic Cooperation summit at the end of the week.

    In her first news conference as prime minister, she described her schedule as “packed” with diplomatic events and said it will be a valuable opportunity to meet other regional leaders.

    Chinese leader Xi Jinping will also attend the summit in South Korea, where talks with Trump are planned, but a one-on-one meeting with Takaichi would be a surprise.

    Neither Xi nor Chinese Premier Li Qiang has publicly congratulated Takaichi since she became prime minister on Tuesday. They extended immediate congratulations to her predecessor, Shigeru Ishiba, who held more moderate positions on China.

    America has long been Japan’s most important ally and protector, but as with NATO and other allies, Trump has demanded Japan contribute more for its defense. His tariffs on imports have also delivered a blow to the country’s economy.

    Takaichi pledged Friday to accelerate a plan to increase defense spending to 2% of Japan’s GDP, a measure of the size of the economy. The target would be reached in March instead of 2027, she said.

    “In the region around Japan, military activities and other actions from our neighbors China, North Korea and Russia are causing grave concerns,” she said in a policy speech to parliament.

    Trump may be more focused in both Japan and South Korea on his demands for more investment in the United States, particularly for factories that would create jobs for American workers.

    Takaichi could benefit from being a political protégé of former Japanese Prime Minister Shinzo Abe, who appeared to have won Trump’s trust during the American president’s first term.

    She shares Abe’s views on wartime history, perhaps even more strongly than he did. Before becoming prime minister, she was among conservative lawmakers who regularly paid respects to Japan’s war dead at Yasukuni Shrine in Tokyo.

    The visits anger both China and South Korea because the enshrined include former leaders convicted of war crimes for their actions during World War II.

    Takaichi notably skipped a visit during the autumn festival earlier this month, when it appeared likely she would become Japan’s leader.

    Her paramount mission now is political stability, and experts think she will refrain from expressing her views on the war and stay away from the shrine to avoid any flareups that could shake her weak and untested coalition government.

    “It would be so foolish of her especially in her first year to create a major diplomatic incident because she wants to go to Yasukuni Shrine,” said Gerald Curtis, a Japanese politics expert at Columbia University.

    He said her right-wing supporters know she is on their team, so she doesn’t need to visit the shrine to prove that to them.

    A Chinese expert on Japan concurred.

    Lian Degui at Shanghai International Studies University noted that Abe maintained ties with China even while deepening military cooperation with the U.S. and pushing unsuccessfully to revise Japan’s pacifist constitution, another hot-button issue for China.

    “If she can learn from Abe, bilateral relations will not deteriorate,” he said. “Abe rarely visited Yasukuni Shrine as prime minister and this is the foundation for bilateral relations.”

    Avoiding the shrine might keep ties from deteriorating, but experts said it’s hard to see them improving given the fundamental differences over regional security.

    Takaichi has described the U.S.-Japan alliance as the “cornerstone” of her country’s diplomacy and security policy.

    “Japan, from the U.S. perspective, is an indispensable partner for America’s China strategy or its Indo-Pacific strategy,” she added at her news conference.

    China meanwhile has less incentive to improve ties than it did earlier, said Rintaro Nishimura, a senior associate at The Asia Group.

    “Given the situation now, their focus is on dealing with Trump directly, and Japan I don’t think is their first priority at this point,” he said.

    Shi Yinhong, a professor of international relations at Beijing’s Renmin University of China, expects the military confrontation between Japan and China to intensify under Takaichi, and said disputes over wartime history could increase.

    The new prime minister has said she wants to maintain stable ties with China, but another Chinese expert advised against putting much stock in those comments.

    “These remarks are all the pre-established tones of the Japanese foreign ministry,” said Liu Jiangyong, a specialist in East Asian studies at Tsinghua University in Beijing.

    He said a meeting with a Chinese leader is difficult to imagine, given Takaichi’s past remarks on history and push to expand the military, though some kind of courtesy greeting during a regional summit is possible.

    ___

    Moritsugu reported from Beijing. Associated Press researcher Yu Bing in Beijing contributed to this report.

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  • As Putin Digs In, a Long—and Different—War With Ukraine Looms

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    Russia’s refusal of a cease-fire and an aborted peace summit in Budapest have raised the grim prospect that the war in Ukraine will rage for years to come—even as the nature of the conflict transforms.

    President Vladimir Putin remains convinced that Russia will eventually wear down its smaller neighbor, causing a collapse of the Ukrainian economy and society. An elusive victory would allow him to make the case that the devastating war he unleashed nearly four years ago was worth it, after all.

    Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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    Yaroslav Trofimov

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  • 7 charged in 2024 Pennsylvania voter registration fraud that prosecutors say was motivated by money

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    HARRISBURG, Pa. — A yearlong investigation into suspected fraudulent voter registration forms submitted ahead of last year’s presidential election produced criminal charges Friday against six street canvassers and the man who led their work in Pennsylvania.

    The allegations of fraud appeared to be motivated by the defendants’ desire to make money and keep their jobs and was not an effort to influence the election results, said Pennsylvania Attorney General Dave Sunday, a Republican.

    Guillermo Sainz, 33, described by prosecutors as the director of a company’s registration drives in Pennsylvania, was charged with three counts of solicitation of registration, a state law that prohibits offering money to reach registration quotas. A message seeking comment was left on a number associated with Sainz, who lives in Arizona. He did not have a lawyer listed in court records.

    The six canvassers are charged with unsworn falsification, tampering with public records, forgery and violations of Pennsylvania election law. The charges relate to activities in three Republican-leaning Pennsylvania counties: York, Lancaster and Berks.

    “We are confident that the motive behind these crimes was personal financial gain, and not a conspiracy or organized effort to tip any election for any one candidate or party,” Sunday said in a news release. Prosecutors said the forms included all party affiliations.

    In a court affidavit filed with the criminal charges on Friday, investigators said Sainz, an employee of Field+Media Corps, “instituted unlawful financial incentives and pressures in his push to meet company goals to maintain funding which in turn spurred some canvassers to create and submit fake forms to earn more money.”

    The chief executive of Field+Media Corps, based in Mesa, Arizona, said last year the company was proud of its work to expand voting but had no information about problematic registration forms. A message seeking comment was left Friday for the CEO, Francisco Heredia. The Field+Media Corps website did not appear to be operative.

    Field+Media was funded by Everybody Votes, an effort to improve voter registration rates in communities of color. The affidavit said Everybody Votes “fully cooperated” with the investigation and noted its contract with Field+Media prohibited payments on a per-registration basis.

    “The investigation confirmed that we hold our partners to the highest standards of quality control when collecting, handling and delivering voter registration applications,” Everybody Votes said in a statement e-mailed by a spokesperson.

    Sainz, who managed Pennsylvania operations from May to October 2024, is accused of paying canvassers based on how many signatures they collected. The police affidavit said Sainz told agents with the attorney general’s office earlier this month he was unaware of any canvassers paid extra hours if they reached a target number of forms.

    “Sainz had to be asked the question multiple times before he stated he was not aware of this and that ‘everyone was an hourly worker,’ ” investigators wrote.

    One canvasser said she created fake forms to boost her pay and believed others did, too, according to the police affidavit. Another told investigators that most of the registration forms he collected were “not real.” A third reported that when she realized she was not going to reach a daily quota, “she would make up names and information,” police wrote, “due to fear of losing her job.”

    The investigation began in late October 2024, when election workers in Lancaster flagged about 2,500 voter registration forms for potential fraud. Authorities said they appeared to contain false names, suspicious handwriting, questionable signatures, incorrect addresses and other problematic details.

    The suggestion of criminal activity related to the election came as the battleground state was considered pivotal to the presidential election, and then-candidate Donald Trump seized on the news. At a campaign event, he declared there was “cheating” involving “2,600” votes. The actual issue in Lancaster was about 2,500 suspected fraudulent voter registration forms, not ballots or votes.

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  • Ontario premier doesn’t back down against Trump

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    TORONTO — The leader of Canada’s most populous province posted remarks by former U.S. President Ronald Reagan on social media on Friday showing Reagan opposed tariffs, hours after President Donald Trump announced he’s ending “all trade negotiations” with Canada because of a television ad that Trump said misstates Reagan’s opposition to tariffs.

    Ontario Premier Doug Ford didn’t back down and said Canada and the U.S. are friends, neighbors and allies “and Reagan knew that both are stronger together.” Ford then provided a link to a Reagan speech where the late president voices opposition to tariffs.

    On Thursday Trump posted, “The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about Tariffs.”

    Trump doubled down on his criticism of the Ontario ads again on Friday and accused Canada of trying to influence an upcoming U.S. Supreme Court ruling on his global tariff regime.

    Trump’s call for an abrupt end to negotiations has further inflamed trade tensions between the neighbors and longtime allies.

    Canadian Prime Minister Mark Carney said this week he aims to double his country’s exports to countries outside the U.S. because of the threat posed by Trump’s tariffs. Canadian officials remain ready to continue talks to reduce tariffs in certain sectors, he said.

    “We can’t control the trade policy of the United States. We recognize that that policy has fundamentally changed from the 1980s,” Carney said Friday morning before boarding a flight to Asia. “We have to focus on what we can control and realize what we can’t control.”

    Carney is trying to secure a trade deal with Trump, but tariffs are taking a toll, particularly in the aluminum, steel, auto and lumber sectors.

    The Ontario government paid about $75 million Canadian (US$54 million) for the ads to air across multiple American television stations using audio and video of former president Reagan speaking about tariffs in 1987.

    Earlier Thursday night, the Ronald Reagan Presidential Foundation and Institute posted on X that an ad created by the government of Ontario “misrepresents the ‘Presidential Radio Address to the Nation on Free and Fair Trade’ dated April 25, 1987.” It added that Ontario did not receive foundation permission “to use and edit the remarks.”

    The foundation said it is “reviewing legal options in this matter” and invited the public to watch the unedited video of Reagan’s address.

    Ford said earlier this week he had heard that Trump had seen the ad.

    “I’m sure he wasn’t too happy,” Ford said.

    Ford has said the aim is to “blast” the pro-trade message to Americans, particularly Republican districts.

    “It’s real, because it was coming from the best president the country’s ever seen, Ronald Reagan,” Ford said. “I feel the Reagan Republicans are going to be fighting with the MAGA group, and let’s hope, Reagan Republicans win.”

    Ford is a populist conservative who doesn’t belong to the same party as Carney, a Liberal.

    Trump has been threatening Canada’s economy and sovereignty with tariffs, most offensively by claiming Canada could be “the 51st state.”

    Jason Kenney, a former Conservative cabinet minister under ex-Prime Minister Stephen Harper, called Trump’s posts “just embarrassing.”

    “The Ontario ad does not misrepresent President Reagan’s anti-tariff radio address in any respect whatsoever. It is a direct replay of his radio address, formatted for a one minute ad,” Kenney posted on social media.

    “Everything that Reagan said in his pro-free trade April, 1987 radio message is consistent with the ad. In fact, everything he ever said about trade, before and after becoming President, is consistent with his principled opposition to tariffs.”

    Kenney also took aim at the Reagan foundation.

    “They know perfectly well that the Ontario ad captures precisely President Reagan’s opposition to tariffs, and support for free trade. But it is obvious that the Foundation now has gormless leadership which is easily intimidated by a call from the White House, yet another sign of the hugely corrosive influence of Trump on the American conservative movement,” he posted

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  • In Japan and South Korea, Trump will promote big investments. But the details are still not clear

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    WASHINGTON — President Donald Trump is going to Japan and South Korea next week to promote an epic financial windfall — at least $900 billion in investments for U.S. factories, a natural gas pipeline and other projects.

    Japan and South Korea made those financial commitments in August to try to get Trump to ratchet down his planned tariff rates from 25% to 15%. But as the U.S. president is set to depart Friday night for Asia, the pledges are more of a loose end than money in the bank for American industry.

    Japan pledged $550 billion in investments, but it wants the money to benefit its own companies, making that a condition in a memorandum released in September. As of Monday, Japan has a new prime minister, Sanae Takaichi, who has expressed respect for Trump but is operating in an untested coalition government.

    South Korea offered $350 billion — but wants a swap line for U.S. dollars to facilitate its investments and seeks to fund the transactions through loan guarantees. Otherwise, the commitment could sink its own economy.

    The investment arrangements are unusual for trade frameworks, and Trump maintains that he will personally direct how the money is spent, enabling him to pick winners and losers. Weeks of talks have yet to produce any breakthroughs on how the investments would go forward even though both nations want to preserve their relationship with America.

    Still, ahead of the trip, Trump was radiating optimism that his tariffs had forced investments to fuel what he believes will be an economic boom starting next year.

    “We’ve done well, as you know, with Japan, with South Korea,” Trump told Republican senators Tuesday. “Without the tariffs, you could have never made the deal. I’ll tell you what. Tariffs equal national security.”

    For Trump, the investments are also about demonstrating America’s strength before a planned meeting with Chinese leader Xi Jinping while he is in South Korea. U.S. Trade Representative Jamieson Greer on Monday described Trump’s strategy in part as “encouraging allied investment in America’s industrial future” to counter Chinese manufacturers.

    But Japan and South Korea are also competing against China — which is pivoting aggressively into electric vehicles, computer chips and other technologies. There is a risk that mandating investment in the U.S. could weaken allies that are closer geographically to China, said Christopher Smart, managing partner at the Arbroath Group, a geopolitical strategy firm.

    “They need to invest in their own countries,” said Smart, who was a senior economic aide in the Obama White House. He said Trump was “going to extract investment money” from the countries while also erecting “tariff walls” that could make it harder for them to sell goods in America, a rather lopsided view of how alliances work.

    Few experts believe Japan and South Korea would agree with the Trump administration’s framing that their U.S. investments are a way to compete against China.

    “It is really about lowering tariffs and avoiding Trump’s wrath,” said Andrew Yeo, a senior fellow at the Brookings Institution’s Center for Asia Policy Studies.

    There is an expectation that Japan and South Korea both want to resolve any hurdles on the investments and will take steps to achieve “progress” in talks with Trump, said William Chou, a senior fellow focused on Japan at the Hudson Institute, a conservative think tank.

    Chou pointed to Nippon Steel’s agreement to purchase U.S. Steel this year as an example of how Japan can work with the Trump administration. The president had initially opposed the merger, but later backed it with an agreement that gave the U.S. government some control over the acquired company.

    Similarly, the memorandum of understanding on Japan’s $550 million investment would also give the U.S. government input on how the money would be spent. It provides for a committee led by Commerce Secretary Howard Lutnick to propose investments, giving Japan 45 days to respond, with the understanding that the deals would give preference to Japanese contractors and suppliers.

    “Japan came through with the paperwork,” Lutnick said in a September CNBC interview. “They gave us $550 billion to invest for the benefit of America, build the Alaska pipeline, build nuclear power plants, make your grid better, do generic antibiotics in America.”

    South Korea has yet to finalize a written agreement with the U.S. on the $350 billion investment, a problem as higher U.S. tariff rates still apply to its autos. South Korean officials have balked at U.S. demands for upfront payments, which they say would put the country at risk of a financial crisis. Instead, they have proposed delivering the investment through loans and loan guarantees.

    Returning to South Korea on Sunday after talks in Washington, Kim Yong-beom, presidential chief of staff for policy, told reporters there had been progress, although he declined to provide specifics.

    “We’re nearing an agreement that there should be mutually beneficial (deals) that the Republic of Korea can endure,” Kim said. “The U.S. fully recognizes and understands possible shocks on the foreign exchange market in the Republic of Korea.”

    The proposed South Korean investment represents more than 80% of its foreign currency reserves. South Korea has proposed a currency swap with the U.S. to ease potential financial instability caused by the investment, but no agreement has been reached yet.

    The Sept. 4 immigration raid by Trump’s government on a Hyundai auto plant in Georgia, causing the detention of more than 300 South Koreans, has also strained the relationship. It came less than two weeks after Trump met South Korean President Lee Jae Myung, and led to calls in South Korea to ensure that its workers operating in the U.S. have legal protections.

    Since that raid, South Korea’s Foreign Ministry has said the United States has now agreed to allow in South Korean workers on short-term visas or a visa waiver program to help build industrial sites in America.

    Lee has said South Korean companies will likely hesitate to make further investments in the U.S. unless it improves its visa system.

    “When you build a factory or install equipment at a factory, you need technicians, but the United States doesn’t have that workforce and yet they won’t issue visas to let our people stay and do the work,” Lee said last month.

    Trump has said his tariffs will spur new investments that ultimately will produce jobs for U.S. citizens.

    “Without tariffs, it’s a slog for this country, a big slog,” Trump said Wednesday.

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    Kim reported from Seoul.

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  • Oklo Is Having Its Worst Week Since May 2024. What’s Ailing the Nuclear Stock.

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    Oklo Stock Is Having Its Worst Week Since May 2024. What’s Burdening the Nuclear Start-Up.

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  • Japan’s exports and imports grow in September despite Trump’s tariffs

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    Japan’s exports grew 4.2% in September, according to government data, on robust shipments to Asia that offset the decline to those destined for the U.S., which were impacted by President Donald Trump’s tariffs

    TOKYO — TOKYO (AP) — Japan’s exports grew 4.2% in September, according to government data Wednesday, on robust shipments to Asia that offset a decline in exports to the U.S., which were impacted by President Donald Trump’s tariffs.

    Japan’s exports to Asia jumped 9.2% last month compared to the same period a year earlier, according to Japanese Ministry of Finance data.

    Exports to the U.S. dropped 13.3%, marking the sixth straight month of on-year declines, while those to China surged 5.8% compared to last year.

    Auto shipments to the U.S. dropped 24.2% in September. Automakers like Toyota Motor Corp. are pillars of Japan’s economy.

    Japan’s imports edged up 3.3% in September overall, growing 6% in Asia, including a 9.8% rise in imports from China.

    The findings come a day after Sanae Takaichi was chosen in a parliamentary vote as the nation’s prime minister, becoming the first woman to lead Japan.

    She is known for nationalist-leaning conservative views but is also seen as a proponent of bigger public spending, which has sent share prices generally rising in Tokyo in recent sessions.

    Takaichi has also promised higher wages, as well as looser monetary policy, which would favor a weak Japanese yen. That would be a boon for the nation’s giant exporters by raising the value of overseas earnings when converted into yen.

    Takaichi faces an uphill battle in realizing her policies because the ruling Liberal Democratic Party, even with coalition partners, does not have a majority in either house of parliament. Her own party remains divided.

    Trump, who is expected to visit Japan later this month to meet with Takaichi, announced a trade framework with Japan in July that placed a 15% tax on Japanese goods.

    At that time, Japan promised to invest $550 billion into the U.S. and open its economy more to American automobiles and rice. The 15% tax on imported Japanese goods was a significant drop from the 25% rate that Trump had said earlier.

    ___

    Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama

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  • Exclusive | The U.S. Is Trying to Drive a Wedge Between Argentina and China

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    WASHINGTON—The Trump administration is pushing officials in Argentina to limit China’s influence over the distressed South American nation at the same time the U.S. and Wall Street banks are working on a $40 billion lifeline for Buenos Aires.

    Treasury Secretary Scott Bessent has spoken in recent weeks with Luis Caputo, Argentina’s economic minister, about curbing China’s ability to access the country’s resources, including critical minerals. In addition, they have discussed granting the U.S. expanded access to the country’s uranium supply, according to people with knowledge of the conversations.

    Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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    Brian Schwartz

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  • Opinion | About Trump’s Foreign Investment Funds

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    President Trump moves so fast and announces so much that it’s hard to sort the real from the hype. Cases in point are the invest-in-America promises that foreign governments have made as part of Mr. Trump’s trade deals. They’re so large they’re unlikely to happen, and they raise serious questions about American governance and the power of the purse.

    Mr. Trump heads to South Korea later this month for the annual APEC meetings, and Treasury Secretary Scott Bessent says the Administration is “about to finish up” negotiations over Seoul’s promise to invest some $350 billion in the U.S. In return Mr. Trump cut his tariff on South Korea to 15% from 25%. Japan has also agreed to cut the U.S. a $550 billion check in return for a tariff reduction.

    Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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    The Editorial Board

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  • GM boosts full-year outlook as it foresees a smaller impact from tariffs and 3Q results top Street

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    General Motors anticipates a smaller impact from tariffs and is boosting its full-year adjusted earnings forecast as its third-quarter performance topped Wall Street’s expectations.

    Shares surged more than 9% before the market open on Tuesday.

    The automaker reduced its expectations for the full-year gross impact from tariffs to a range of $3.5 billion to $4.5 billion. Its previous guidance was $4 billion to $5 billion. GM anticipates its tariff mitigation actions will offset about 35% of the impact due to a lower tariff base.

    On Friday President Donald Trump gave domestic automakers additional relief from tariffs on auto parts, extending what was supposed to have been a short-term rebate until 2030. It’s part of a proclamation Trump signed Friday that also made official a 25% import tax on medium and heavy duty trucks, starting Nov. 1.

    The action reflected the administration’s efforts to use tariffs to promote American manufacturing while also trying to shield the auto sector from the higher costs that Trump’s import taxes have created for parts and raw materials.

    “The MSRP offset program will help make U.S.-produced vehicles more competitive over the next five years, and GM is very well positioned as we invest to increase our already significant domestic sourcing and manufacturing footprint,” GM CEO Mary Barra said in a letter to shareholders.

    For the three months ended Sept. 30, GM earned $1.33 billion, or $1.35 per share. A year earlier the automaker earned $3.06 billion, or $2.68 per share.

    Earnings, adjusted for one-time gains and costs, were $2.80 per share. That easily beat the $2.28 per share that analysts surveyed by Zacks Investment Research were calling for.

    Revenue totaled $48.59 billion, topping Wall Street’s estimate of $44.27 billion.

    GM now foresees full-year adjusted earnings between $9.75 and $10.50 per share. Its prior outlook was for $8.25 to $10 per share. Analysts polled by FactSet predict full-year earnings of $9.46 per share.

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  • Ultraconservative Sanae Takaichi on track to become Japan’s first female prime minister

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    TOKYO — TOKYO (AP) — Sanae Takaichi is on track to become Japan’s first female prime minister, after her governing party secured a crucial coalition partner.

    Takaichi, 64, is set to replace Prime Minister Shigeru Ishiba in Tuesday’s parliamentary vote. If she’s successful, it would end Japan’s three-month political vacuum and wrangling since the coalition’s loss in the July parliamentary election.

    The moderate centrist Komeito party had split from the ruling Liberal Democratic Party after a 26-year-long coalition. It came just days after Takaichi’s election as LDP leader, and forced her into a desperate search for a new coalition partner to secure votes so that she can become prime minister.

    The Buddhist-backed Komeito left after raising concerns about Takaichi’s ultraconservative politics and the LDP’s lax response to corruption scandals that led to the party’s consecutive election defeats and loss of majority in both houses.

    While the leaders of the country’s top three opposition parties failed to unite to seek a change of government, Takaichi went for a quick fix by teaming up with the most conservative of them: the Osaka-based Ishin no Kai, or Japan Innovation Party. The two parties on Monday signed a coalition agreement that includes joint policy goals on diplomacy, security and energy.

    The fragile new coalition, still a minority in the legislature, would need cooperation from other opposition groups to pass any legislation.

    Big diplomatic tests await the government within days — talks with U.S. President Donald Trump and regional summits. At home, Takaichi needs to quickly tackle rising prices and come up with economic stimulus measures to appease the frustrated public.

    An admirer of former U.K. Prime Minister Margaret Thatcher, Takaichi’s breaking of the glass ceiling makes history in a country whose gender equality ranks poorly internationally.

    But many women aren’t celebrating, and some see her impending premiership as a setback.

    “The prospect of a first female prime minister doesn’t make me happy,” sociologist Chizuko Ueno posted on X. Ueno said that Takaichi’s leadership would elevate Japan’s gender equality ranking, but “that doesn’t mean Japanese politics becomes kinder to women.”

    Takaichi, an ultraconservative star of her male-dominated party, is among those who have stonewalled measures for women’s advancement. Takaichi supports the imperial family’s male-only succession, opposes same-sex marriage and a revision to the civil law allowing separate last names for married couples, so women don’t get pressured into abandoning theirs.

    “Ms. Takaichi’s policies are extremely hawkish and I doubt she would consider policies to recognize diversity,” said Chiyako Sato, a political commentator and senior writer for the Mainichi newspaper.

    If she’s successful in the parliamentary vote, Takaichi would immediately launch her Cabinet on Tuesday and make a policy speech later in the week.

    A protege of assassinated former Prime Minister Shinzo Abe, Takaichi is expected to emulate his economic and security policies.

    She would have only a few days to prepare for diplomatic talks at regional summits, and with Trump in between. She is expected to keep ties with China and South Korea stable, despite concerns over her revisionist views on wartime history and past visits to the Yasukuni Shrine.

    The shrine honors Japan’s 2.5 million war dead, including convicted war criminals. Victims of Japanese aggression, especially China and the Koreas, see visits to the shrine as a lack of remorse about Japan’s wartime past.

    Takaichi supports a stronger military, currently undergoing a five-year buildup with the annual defense budget doubled to 2% of gross domestic product by 2027. Trump is expected to demand that Japan increase its military spending to NATO targets of 5% of GDP, and purchase more U.S. weapons.

    Takaichi also needs to follow up on Japan’s pledge of investing $550 billion in the U.S. as part of a U.S. tariff deal.

    Her policy plans have focused on short-term measures such as battling rising prices and improving salaries and subsidies, as well as restrictions against a growing foreign population as Japan faces a rise in xenophobia. Takaichi hasn’t addressed bigger issues like demographic challenges.

    Takaichi’s mission is to regain conservative votes by pushing the party further to the right. The LDP’s coalition with the right-wing JIP may fit Takaichi’s view.

    On Friday, Takaichi sent a religious ornament instead of going to the Yasukuni Shrine, apparently to avoid a diplomatic dispute with Beijing and Seoul. She also reached out to smaller opposition groups, including the far-right Sanseito, apparently in a bid to bring her coalition closer to securing a majority in parliament.

    “There is no room for Takaichi to show her true colors. All she can do is cooperate per policy,” said Masato Kamikubo, a Ritsumeikan University political science professor. “It’s a pathetic situation.”

    Many observers expect a Takaichi government wouldn’t last long and an early election may follow this year.

    Experts also raised concerns about how Takaichi, a fiscal expansionist, can coordinate economic policies with Ishin’s fiscal conservative views.

    “The era of LDP domination is over and we are entering the era of multiparty politics. The question is how to form a coalition,” Sato said, noting a similar trend in Europe. “We need to find a Japanese way of forming a coalition and a stable government.”

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  • To hit back at the United States in trade war, China borrows from the US playbook

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    WASHINGTON — WASHINGTON (AP) — China likes to condemn the United States for extending its arm too far outside of its borders to make demands on non-American companies. But when it sought to hit back at the U.S. interests this month, Beijing did exactly the same.

    In expanding export rules on rare earths, Beijing for the first time announced it will require foreign firms to obtain approval from the Chinese government to export magnets containing even tiny amounts of China-originated rare earth materials or produced with Chinese technology.

    That means a South Korean smartphone maker must ask for Beijing’s permission to sell the devices to Australia if the phones contain China-originated rare earth materials, said Jamieson Greer, the U.S. trade representative. “This rule gives China control over basically the entire global economy in the technology supply chain,” he said.

    For anyone familiar with U.S. trade practice, China is simply borrowing a decades-long U.S. policy: the foreign direct product rule. It extends the reach of U.S. law to foreign-made products, and it has been used regularly to restrict China’s access to certain U.S. technologies made outside of the United States, even when they are in the hands of foreign companies.

    It is the latest example of Beijing turning to U.S. precedents for tools it needs to stare down Washington in what appears to be an extended trade war between the world’s two largest economies.

    “China is learning from the best,” said Neil Thomas, a fellow on Chinese politics at Asia Society Policy Institute’s Center for China Analysis. “Beijing is copying Washington’s playbook because it saw firsthand how effectively U.S. export controls could constrain its own economic development and political choices.”

    He added: “Game recognizes game.”

    It was in 2018, when President Donald Trump launched a trade war with China, that Beijing felt the urgency to adopt a set of laws and policies that it could readily deploy when new trade conflicts arise. And it looked to Washington for ideas.

    Its Unreliable Entity List, established in 2020 by the Chinese Ministry of Commerce, resembles the U.S. Commerce Department’s “entity list” that restricts certain foreign companies from doing businesses with the U.S.

    In 2021, Beijing adopted the anti-foreign sanction law, allowing agencies such as the Chinese Foreign Ministry to deny visas and freeze the assets of unwelcome individuals and businesses — similar to what the U.S. State Department and the U.S. Department of Treasury can do.

    Calling it a toolkit against foreign sanctions, intervention and long-arm jurisdiction, the state-run news agency China News in a 2021 news report cited an ancient Chinese teaching, saying Beijing would be “hitting back with the enemy’s methods.”

    The law “has combed through relevant foreign legislation and taken into consideration the international law and the basic principles of international relations,” said the Chinese scholar Li Qingming as quoted in the news report. He also said it could deter the other side from escalating.

    Other formal measures Beijing has adopted in the past several years include expanded export controls and foreign investment review tools.

    Jeremy Daum, a senior research scholar in law and senior fellow at Yale Law School’s Paul Tsai China Center, said Beijing often draws from foreign models in developing its laws in non-trade, non foreign-related areas. As China seeks capabilities to retaliate in kind in trade and sanctions, the tools are often “very parallel” to those of the U.S., he said.

    Both governments also have adopted a “holistic view of national security,” which expands the concept to justify restrictions on each other, Daum said.

    When Trump launched his trade war with China shortly after he returned to the White House earlier this year, Beijing readily deployed its new tools in addition to raising tariffs to match those imposed by the U.S. president.

    In February, in response to Trump’s first 10% tariff on China over allegations that Beijing failed to curb the flow of chemicals used to make fentanyl, the Chinese Commerce Ministry put PVH Group, which owns Calvin Klein and Tommy Hilfiger and the biotechnology company Illumina, on the unreliable entity list.

    That barred them from engaging in China-related import or export activities and from making new investments in the country. Beijing also announced export controls on tungsten, tellurium, bismuth, molybdenum and indium, which are elements critical to the production of modern high-tech products.

    In March, when Trump imposed the second 10%, fentanyl-related tariff, Beijing placed 10 more U.S. firms on its unreliable entity list and added 15 U.S. companies to its export control list, including aerospace and defense companies like General Dynamics Land Systems and General Atomics Aeronautical Systems, among others, asserting that they “endanger China’s national security and interests.”

    Then came the so-called “Liberation Day” tariffs in April, when Beijing not only matched Trump’s sky-high tariff of 125% but also blacklisted more U.S. companies and announced export controls on more rare earth minerals. That led to a pause in the shipment of magnets needed in manufacturing a wide range of products such as smartphones, electric vehicles, jet planes and missiles.

    While the new tools have allowed China to stare down the United States, Daum said they are not without risks.

    “The dangers in such a facially balanced and fair approach are, one, what one side sees as reciprocity the other might interpret as escalation,” he said. And second, “in a race to the bottom, nobody wins.”

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  • China’s economy slows to 4.8% annual growth

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    HONG KONG — HONG KONG (AP) — China’s economy expanded at the slowest annual pace in a year in July- September, growing 4.8%, weighed down by trade tensions with the United States and slack domestic demand.

    The July-September data was the weakest pace of growth since the third quarter of 2024, and compares with a 5.2% pace of growth in the previous quarter, the government said in a report Monday.

    In January-September, the world’s second largest economy grew at a 5.2% annual pace. Despite U.S. President Donald Trump’s higher tariffs on imports from China, the country’s exports have remained relatively strong as companies shifted their sales to other world markets.

    Tensions between Beijing and Washington remain elevated, and it’s unclear if Trump and Chinese leader Xi Jinping will go ahead with a proposed meeting during a regional summit at the end of this month.

    Xi and other ruling Communist Party members are convening one of China’s most important political meetings for the year on Monday, where they will map out economic and social policy goals for the country for the next five years.

    The economy slowed in the last quarter as the authorities moved to curb fierce price wars in sectors such as the auto industry that resulted from overcapacity.

    China is also facing challenges including a prolonged property sector downturn which has been affecting consumption and demand.

    Ratings agency S&P estimates nationwide new home sales will fall by 8% in 2025 from the year before and by 6% to 7% in 2026.

    The World Bank expects China’s economy to grow at a 4.8% annual rate this year. The government’s official growth target is around 5%.

    China’s stronger economic growth in the first half of this year has given it “some buffer” to achieve the growth target, said Lynn Song, chief economist for Greater China at ING Bank.

    However, spending during China’s eight-day Golden Week national holiday in October was “mildly disappointing,” reflecting sluggish consumer confidence and demand, Morningstar analysts said in a note this month.

    There’s room for the government to do more, Song said.

    “(We) are looking to see if there will be further measures to support consumption and the property market, as the impact from previous policies begins to weaken,” Song said.

    Economists are also expecting a rate cut by China’s central bank by the end of the year, which could encourage more spending and investment.

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  • After winning Trump’s $20 billion, President Milei must win votes as Argentine industry reels

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    BUENOS AIRES, Argentina — BUENOS AIRES, Argentina (AP) — The factory floor used to roar.

    Walking around his textile mill in southern Buenos Aires, Luciano Galfione pointed out the up-to-the-minute machines that once whirred and clattered as 200 employees churned out fabric to be transformed into athleisure and other apparel for Argentina’s vast middle class.

    But on Monday afternoon, the factory was so quiet that Galfione’s footsteps rang clear through the compound. A handful of workers at the Galfione Group factory in Argentina’s capital spooled yarn and dyed cloth.

    Almost two years after libertarian President Javier Milei stormed to power on a promise to rescue Argentina’s crisis-stricken economy through harsh austerity and free-market reforms, falling orders and surging competition have forced Galfione to cut operations by 80%, lay off or suspend half his staff and use his own savings to keep his family’s 78-year-old firm afloat.

    Other companies have simply closed their doors. Over 17,600 businesses — among them 1,800 manufacturers and 380 textile companies — have folded in the last year and a half, according to Fundación Pro Tejer, a nonprofit representing textile manufacturers.

    “We’re seeing an industry in crisis, and it’s about to go bankrupt,” said Galfione, who also runs Fundación Pro Tejer. “Not only textiles. Textiles are just the first and fastest to fall.”

    As Argentina heads to Oct. 26 midterm elections widely seen as a referendum on Milei’s policies, Galfione’s troubles reflect bigger shocks jolting the country. The economy has sputtered. Cheap imports have gutted manufacturing. Spending has stumbled, squeezed by higher unemployment and lower wages.

    The turmoil engulfing Argentine financial markets began when voters in the manufacturing belt of suburban Buenos Aires — a region that for decades represented the dream of national industry nurtured by tariff protectionpunished Milei in a provincial election last month.

    The scale of Milei’s humiliation triggered a sharp peso sell-off and sent officials scrambling to secure $20 billion in financing from a friendly Trump administration.

    President Donald Trump, who sees a kindred spirit and fellow culture warrior in Argentina’s chain saw wielding leader, shocked Argentines and Americans alike Tuesday by warning that the $20 billion was contingent on Milei’s success in what is shaping up to be a hotly contested legislative election.

    Treasury Secretary Scott Bessent went further on Wednesday, saying that the U.S. could tap investment funds to provide Argentina with up to $40 billion.

    “Just helping a great philosophy take over a great country,” Trump explained after meeting Milei at the White House.

    Thousands of miles away, many Argentines are losing patience with that philosophy.

    Those interviewed on the streets of Buenos Aires Wednesday had no illusions about Trump’s lifeline fixing their problems.

    “Let’s say they give us this money from abroad. What am I going to do with it?” asked Walter Willatt, a 56-year-old newsstand owner whose son was just laid off from a local Toyota dealership. “If the economy revives it will have to be through domestic consumption.”

    Over a year ago, markets cheered as Milei fulfilled his flagship promise to reduce the runway inflation that he inherited from his populist predecessors. Many Argentines — who had grown accustomed to supermarkets revising prices upward everyday — hailed Milei’s program as a miraculous outbreak of normalcy in a notoriously topsy-turvy economy.

    But today, price stability is old news as Argentines contend with a lengthening list of worries.

    Unemployment in Buenos Aires Province climbed to 9.8% in the second quarter of this year, compared to 7.3% during the same period in 2023, before Milei entered office. Salaries nationwide haven’t kept up with inflation. Milei’s major subsidy cuts mean that even if prices have stabilized, Argentines are paying more for bus fares, utility bills and healthcare.

    “Milei’s challenge is that the public now assumes inflation has gone down, that’s a given,” said Marcelo J. García, Director for the Americas for the Horizon Engage political risk consultancy firm. “There’s a new generation of demands. The economy needs to grow, there needs to be job creation. I’m not sure that government is prepared to meet those demands.”

    Rodolfo Núñez, a 43-year-old former factory worker in Pilar, outside Buenos Aires, said he voted for Milei in 2023 because he wanted change. Then the blows began to fall. His daughter’s epilepsy medication shot up in price. His retired parents struggled to afford groceries on their $300-a-month pension.

    On Aug. 29, the ceramic factory where he worked for the last 18 years shut down. The company, ILVA, fired all the plant’s 300 workers in a WhatsApp message that cited the economic crisis, leaving Núñez and his colleagues in limbo, without severance pay or health insurance.

    ILVA did not respond to a request for comment.

    “What Milei promised, he didn’t do. He messed with retirees, he messed with my daughter and he messed with the workers,” he said from outside the padlocked ILVA factory where dozens of dismissed employees now camp out in protest, the air filled with smoke from burning tires and roasting chicken.

    “What do I tell my landlord? That I can’t pay her next month? Where am I going to go?”

    Núñez said he voted for the opposition in last month’s regional elections.

    Government statistics show poor and middle-class households cutting back on all but essential spending. Clothing sales, for instance, fell 10.9% in September compared to the year before. The collapsed consumption reverberates down the supply chain.

    “We’re reducing costs as much as we can, trying to survive with very low production and without making money,” said Alejandro Schvartz, owner of Visuar, a household appliance vendor and producer whose sales dropped roughly 25% in the first half of this year.

    Other policies that Milei depends on to fight inflation — such as high interest rates and central bank interventions to defend the peso — further erode the competitiveness of Argentine industry.

    The peso has become so strong that shoppers now get more bang for their buck by splurging anywhere but Argentina — from Chile’s malls to Brazil’s beaches.

    Upon taking office, Milei tore down trade barriers and relaxed import restrictions, opening Argentina to an avalanche of cheaper industrial and textile products. Chinese e-commerce companies like Temu and Shein pay no import duties for products valued below $400.

    But Milei maintained sky-high taxes for Argentine manufacturers, giving local companies no choice but to pass on the cost to consumers.

    “This is not a fair playing field,” said Pablo Yeramian, director of the Argentine textile company Norfabril, who has already cut 20% of his staff.

    As scenes of Milei beaming beside Trump in Washington flashed across Argentine televisions on Tuesday, some manufacturers couldn’t help wishing that the similarity between the two presidents was, in at least one way, more than just rhetorical.

    “No developed country in the world surrenders its industrial sovereignty,” said Galfione, pointing to Trump’s “Made in America” ambitions for the U.S. “I think instead of doing what the U.S. tells us, we should do what they do.”

    ___

    Associated Press writer Andrea Vulcano in Buenos Aires, Argentina, contributed to this report.

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  • Trump says the US has secured $17 trillion in new investments. The real number is likely much less

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    WASHINGTON (AP) — The economic boom promised by President Donald Trump centers on a single number: $17 trillion.

    That’s the sum of new investments that Trump claims to have generated with his tariffs, income tax cuts and aggressive salesmanship of CEOs, financiers, tech titans, prime ministers, presidents and other rulers. The $17 trillion is supposed to fund new factories, new technologies, more jobs, higher incomes and faster economic growth.

    “Under eight months of Trump, we’ve already secured commitments of $17 trillion coming in,” the president said in a speech last month. “There’s never been any country that’s done anything like that.”

    But based on statements from various companies, foreign countries and the White House’s own website, that figure appears to be exaggerated, highly speculative and far higher than the actual sum. The White House website lists total investments at $8.8 trillion, though that figure appears to be padded with some investment commitments made during Joe Biden’s presidency.

    The White House didn’t lay out the math after multiple requests as to how Trump calculated $17 trillion in investment commitments. But the issue goes beyond Trump’s hyperbolic talk to his belief that the brute force of tariffs and shaming of companies can deliver economic results, a strategy that could go sideways for him politically if the tough talk fails to translate into more jobs and higher incomes.

    Just 37% of U.S. adults approve of Trump’s handling of the economy, according to a September poll by The Associated Press-NORC Center for Public Affairs. That’s down from a peak of 56% in early 2020 during Trump’s first term — a memory he relied upon when courting voters in last year’s election.

    Adam Posen, president of the Peterson Institute of International Economics, said the public commitments announced by Trump do represent a “meaningful increase” — but one that amounts to hundreds of billions of dollars, not trillions. Even then, that comes with long-term costs as countries might be less inclined to invest with the U.S. after being threatened to do so.

    “It is a national security mistake because you’re turning allies into colonies of a sort — you’re forcibly extracting from them things that they don’t see as entirely in their interest,” Posen said. “Twisting the arms of governments to then twist the arms of their own businesses is not going to get you the payoff you want.”

    Trump banking on foreign countries making good on promises

    The Trump administration is betting that tariffs are an effective tool to prod other countries and international companies to invest in the United States, a big stick that other administrations failed to wield. Trump’s pitch to voters is that he will play a role in directly managing the investment commitments made by foreign countries — and that the allocation of that money starting next year will revive what has been a flagging job market.

    “The difference between hypothetical investments and ground being broken on new factories and facilities is good leadership and sound policy,” said White House spokesman Kush Desai.

    The White House said that Japan will invest $1 trillion, largely at Trump’s direction. The European Union will commit $600 billion. The United Arab Emirates made commitments of $1.4 trillion over 10 years. Qatar pledged $1.2 trillion. Saudi Arabia intends to pony up $600 billion, India $500 billion and South Korea $450 billion, among others.

    The challenge is the precise terms of those investments have yet to be fully codified and released to the public, and some numbers are under dispute, potentially fuzzy math or, in the case of Qatar, more than five times the annual gross domestic product of the entire country. The White House maintains that Qatar is good for the money because it produces oil.

    South Korea already has misgivings about its investment commitment, which is $100 billion lower than what the White House claims, after immigration agents raided a Hyundai plant under construction in Georgia and arrested Korean citizens. There are also concerns that an investment that large without a better way to exchange currencies with the U.S. could hurt South Korea’s economy.

    “From what I’ve seen, these commitments are worth about as much as the paper they’re not written down on,” said Jared Bernstein, who was the chairman of the Council of Economic Advisers in the Biden White House.

    As for the $600 billion committed by European companies, that’s based on those businesses having “expressed interest” and having stated “intentions” to do so through 2029 rather than an overt concession, according to European Union documents.

    Still too soon to see any investment impact in overall economy

    So far, there has yet to be a notable boost in business investment as a percentage of U.S. gross domestic product. As a share of the overall economy, business investment during the first six months of Trump’s presidency has been consistently bouncing around 14%, just as it was before the pandemic.

    But economists also note that Trump is double-counting and relying on investments that were initially announced during the Biden administration or investments that were already likely to occur because of the artificial intelligence build out.

    For example, the White House lists a $16 billion investment by computer chipmaker Global Foundries. But of that sum, more than $13 billion was announced during the Biden administration and supported by $1.6 billion in grants by the 2022 CHIPS and Science Act, as well as other state and federal incentives.

    Similarly, the White House is banking on $200 billion being invested by the chipmaker Micron, but at least $120 billion of that was announced during the Biden era.

    ‘The tariffs played a big role’

    For their part, White House officials largely credit Trump’s tariffs — like those imposed on Oct. 1 on kitchen cabinets, large trucks and pharmaceutical drugs — for forcing companies to make investments in the U.S., saying that the risk of additional import taxes if countries and companies fail to deliver on their promises will ensure that the promised cash comes into the economy.

    On Tuesday, Pfizer CEO Albert Bourla endorsed this approach after his pharmaceutical drug company received a three-year grace period on tariffs and announced $70 billion in investments in the U.S.

    “The president was absolutely right,” Bourla said. “Tariffs is the most powerful tool to motivate behaviors.”

    “The tariffs played a big role,” Trump added.

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  • Political crisis in France eases for now as prime minister survives no-confidence vote

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    PARIS — PARIS (AP) — France’s latest political crisis eased — for now — when Prime Minister Sébastien Lecornu survived two consecutive no-confidence votes on Thursday, averting another government collapse and giving President Emmanuel Macron a respite before an even tougher fight over the national budget.

    The immediate danger may have receded but the core problem is still very much center stage. The eurozone’s second-largest economy is still run by a minority government in a splintered parliament where no single bloc or party has a majority.

    Every major law now turns on last-minute deals, and the next test is a spending plan that must pass before the end of the year.

    On Thursday, lawmakers in the 577-seat National Assembly rejected a no-confidence motion filed by the hard-left France Unbowed party. The 271 votes were 18 short of the 289 needed to bring down the government.

    A second motion from the far-right National Rally also failed.

    Had Lecornu lost, Macron would have faced only unpalatable options: call new legislative elections, try to find yet another prime minister — France’s fifth in barely a year — or perhaps even resign himself, which he has ruled out.

    Macron’s decision to dissolve the National Assembly in June 2024 backfired on him, triggering legislative elections that stacked the powerful lower house with opponents of the French leader but producing no outright winner.

    Since then, Macron’s minority governments have sought to barter support bill by bill and have fallen in quick succession.

    That collides with the architecture of the Fifth Republic, founded in 1958 under Charles de Gaulle.

    The system was built for a strong presidency and stable parliamentary majorities, not for coalition horse-trading or a splintered house.

    With no single bloc near an absolute majority of 289 seats, the machinery is grinding against its design, turning big votes into cliffhangers and raising existential questions about the governance of France.

    For French voters and observers, it’s jarring. France, once a model of eurozone stability, is now stumbling from crisis to crisis, testing the patience of markets and allies.

    To peel away opposition votes, Lecornu offered to slow the rollout of Macron’s flagship 2023 pension law, which raises the retirement age from 62 to 64.

    The proposed slowdown could push the law back roughly two years, easing near-term pressure on people nearing retirement while leaving the end goal intact.

    The government puts the short-term cost of the delay at 400 million euros ($430 million) for next year and 1.8 billion euros ($1.9 billion) for 2027, saying it will find offsets.

    For many in France, pensions touch a nerve — the 2023 law triggered massive protests and strikes that left heaps of trash rotting on Paris streets.

    The government then used Article 49.3 — a special constitutional power that lets a prime minister push a law through without a parliamentary vote. But the backlash only hardened.

    With Thursday’s reprieve, Macron’s government has some breathing room. It shifts the battle to the 2026 budget, with a debate opening on Oct. 24.

    Lecornu has vowed not to use Article 49.3 to pass a budget without a vote — which means no shortcuts: every line must win support in a fractured chamber.

    The government and its allies hold fewer than 200 seats. For a majority, they need opposition support.

    That math makes the Socialists, with 69 lawmakers, and the conservative Republicans, with 50, both potential swing blocs. But their backing isn’t a given, even though they both lent support to Lecornu against Thursday’s no-confidence motions.

    The Socialists say the budget draft still lacks “social and fiscal justice.”

    France’s deficit sits near 5.4% of GDP. The plan is to bring it to 4.7% next year with spending restraint and targeted tax changes while trying to protect growth.

    The left is preparing a renewed push for a wealth-side measure aimed at ultra-high fortunes.

    The government rejects that path and prefers narrower, lower-yield steps, including measures on holding companies.

    Analysts predict hard bargaining over benefit freezes, higher medical deductibles and savings demanded of local authorities — each concession risking votes on one flank even as it gains them on another.

    The clock is ticking: Against a year’s end budget deadline, the government must show how it will pay for the pension slowdown and negotiate, in parallel, with the Socialists and conservatives over taxes and spending.

    For the president, success would mean proving that France can pass a credible budget and start to rein in its deficit without extraordinary procedural force.

    If the talks crack — on pensions, taxes or spending — the risks of Lecornu’s government collapsing return, and at the end of the year, France could find itself back where it started: deadlocked.

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  • China, Betting It Can Win a Trade War, Is Playing Hardball With Trump

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    In its trade standoff with Washington, Beijing thinks it has found America’s Achilles’ heel: President Trump’s fixation on the stock market.

    China’s leader, Xi Jinping, is betting that the U.S. economy can’t absorb a prolonged trade conflict with the world’s second-largest economy, according to people close to Beijing’s decision-making. China is holding a firm line because of its conviction, the people said, that an escalating trade war will tank markets, as it did in April after Trump announced his so-called Liberation Day tariffs, prompting Beijing to hit back.

    Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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    Lingling Wei

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  • China Adds Hanwha Ocean’s Units to Sanctions List

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    Hanwha Ocean’s 042660 -5.76%decrease; red down pointing triangle shares slid Tuesday after Beijing added five of the South Korean shipbuilder’s subsidiaries to a sanctions list over their alleged role in a U.S. probe into the Chinese shipping industry.

    The stock plunged as much as 9% before paring losses. It closed 5.8% lower at 103,100 won, equivalent to $72.28, compared with the benchmark Kospi’s 0.6% fall.

    Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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    Kwanwoo Jun

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  • How China and the U.S. Are Racing to De-Escalate the Trade War

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    President Trump is trying to publicly de-escalate tensions with China to soothe markets while privately keeping up pressure on Beijing—a difficult balancing act that is being closely watched by Wall Street.

    After threatening additional 100% tariffs on Chinese imports starting Nov. 1, Trump in recent days spoke with senior officials, including Treasury Secretary Scott Bessent, about sending a message to the world that the U.S. wants to de-escalate trade tensions with China, according to people familiar with the matter.

    Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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  • Uncertainty over economy, tariffs forces retailers to be cautious on holiday hiring

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    NEW YORK — NEW YORK (AP) — Uncertainty over the economy and tariffs is forcing retailers to pull back or delay plans to hire seasonal workers who pack orders at distribution centers, serve shoppers at stores and build holiday displays during the most important selling season of the year.

    American Christmas LLC, which creates elaborate holiday installations for commercial properties such as New York’s Rockefeller Center and Radio City Music Hall, plans to hire 220 temporary workers and is ramping up recruitment nearly two months later than usual, CEO Dan Casterella said. Last year, the company took on 300 people during its busy period.

    The main reason? The company wants to offset its tariff bill, which Casterella expects to be as big as $1.5 million this year, more than double last year’s $600,000.

    “The issue is if you overstaff and then you underperform, it’s too late,” Casterella said. ”I think everyone’s more mindful now than ever. ”

    Job placement firm Challenger, Gray & Christmas forecasts hiring for the last three months of the year will likely fall under 500,000 positions. That’s fewer than last year’s 543,000 level and also marks the smallest seasonal gain in 16 years when retailers hired 495,800 temporary workers, the firm said. The average seasonal gain since 2005 has been 653,363 workers, the firm said.

    Among other companies cutting holiday payrolls: Radial, which powers deliveries for roughly 120 brands like Lands’ End and Cole Haan and operates 20 fulfillment sites. It plans to hire 6,500 workers, fewer than last year’s 7,000, and is waiting to the last minute to ramp up hiring for some of its clients, chief human resources officer Sabrina Wnorowski, said.

    Bath & Body Works, based in Reynoldsburg, Ohio, said it plans to hire 32,000 workers, lower than the 32,700 a year ago.

    Among the bright spots: Online behemoth Amazon Inc. said Monday it intends to hire 250,000 full-, part-time and seasonal workers for the crucial shopping period, the same level as a year ago.

    “We saw real strong signals that there’s been a cooling in the labor market, even beyond what our expectations were in the first nine months of the year,” Challenger’s senior vice president Andy Challenger said. “We are having lots of regular conversations with companies about pending layoffs and changes they’re making to their workforce.”

    In addition to overall economic uncertainty, Challenger noted companies are using artificial intelligence bots to replace some workers, particularly those working in call centers. And he’s also seeing companies hiring workers closer to when they need them.

    Meanwhile, the list of companies staying mum about their specific holiday hiring goals keeps growing. Target Corp., UPS and Macy’s are declining to offer figures, a departure from the past. UPS had hired 125,000 seasonal hires last year, while Target announced last year it planned to hire 100,000 workers. Macy’s last year said it would hire 31,500 seasonal workers.

    Retailers’ hiring plans mark the first clues to what’s in store for the U.S. holiday shopping season and come as the U.S. job market has lost momentum this year, partly because Trump’s trade wars have created uncertainty that’s paralyzing managers trying to make hiring decisions.

    The Labor Department reported in early September that U.S. employers — companies, government agencies and nonprofits — added just 22,000 jobs in August, down from 79,000 in July and well below the 80,000 that economists had expected.

    The government shutdown, which started Oct. 1 and has delayed the release of economic reports, could worsen the job picture.

    In an attempt to exert more pressure on Democratic lawmakers as the government shutdown continues, the White House budget office said Friday that mass firings of federal workers have started.

    The firings are happening as hundreds of thousands are already furloughed and still others are being required to report to duty without pay.

    Analysts will be closely monitoring the shutdown’s impact on spending. For now, many retailers say that consumers, while resilient, are choosy about what they buying. Analysts will also be closely watching how shoppers will react as retailers push through price increases as a result of high tariff costs in the next few months, experts said.

    Given an economic slowdown, holiday spending growth is expected to be smaller than a year ago, according to several forecasts.

    Mastercard SpendingPulse, which tracks spending across all payment methods including cash, predicts that holiday sales will be up 3.6% from Nov. 1 through Dec. 24. That compares with a 4.1% increase during the year-ago period.

    Deloitte Services LP forecasts holiday retail sales to be up between 2.9% to 3.4% from Nov. 1 through Jan. 31. That’s compared to the same year-ago period when retail sales increased 4.2% from the year before.

    Adobe expects U.S. online sales to hit $253.4 billion this holiday season from Nov. 1 to Dec. 31, representing a 5.3% growth. That’s smaller than last year’s 8.7% growth.

    Given the uncertainty, companies increasingly want to hire workers closer to when they need them, experts said.

    “In today’s environment, brands are really looking for us to be agile,” Radial’s Wnorowski said. “Radial is meeting that need of the customer and the consumer with a more flexible and disciplined approach to hiring.”

    So for some of its clients, Radial will now be hiring two weeks before Thanksgiving weekend, the traditional start for the holiday shopping season, instead of four weeks before the kickoff, she said. Radial is also speeding up training of holiday hires due to new technology that’s simplifying their tasks. It used to take a couple of days to train a worker, but now it only takes a couple of hours, she said.

    Meanwhile, Target said it’s again embracing a three-prong approach. It starts first by offering current workers additional hours and then taps into a separate pool of workers— 43,000— who pick up shifts that work for their schedules. The Minneapolis-based company also hires seasonal workers across its nearly 2,000 stores and more than 60 distribution facilities to meet demand, it said.

    For the past few years, Walmart, the nation’s largest retailer and the largest private employer, has been offering the extra hours available during the holidays to its workers, a Walmart spokesperson said, noting it’s worked well and the feedback from customers and workers has been “overwhelmingly positive.”

    The Bentonville, Arkansas-based retailer said there may be some seasonal hiring on a store-by-store basis, but the majority of stores will dole out those hours to current workers.

    Waiting until the last minute to hire workers could mean a mad scramble to find talent, but companies say that due to the slowing economy, they don’t anticipate having a hard time finding the needed pool.

    Meanwhile, the temporary halting of the release of economic reports leaves retailers in the dark about forecasting sales and the workers they need to meet the demand.

    “Certainly, for our customers not having access to data will put more of a challenge on their ability to forecast,” Wnorowski of Radial said. “But we’ll stay very close to them as we go into peak and we’ll adjust as soon we see things changing.”

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