2025-04-25 20:35

Trump says talks underway, China says not true Trump says he has made '200 deals' that would be completed within three to four weeks Business groups say China waives tariffs on pharmaceuticals, mulls other exemptions April 25 (Reuters) - U.S. President Donald Trump asserted in an interview published on Friday that tariff negotiations were under way with China, but Beijing denied any talks were taking place, the latest in a series of conflicting signals over what progress was being made to de-escalate a trade war threatening to sap global growth. Trump told TIME magazine that talks were taking place and that Chinese President Xi Jinping had called him, an assertion he repeated to reporters as he was leaving the White House on Friday morning for Rome to attend the funeral of Pope Francis. Sign up here. "China and the U.S. are NOT having any consultation or negotiation on #tariffs," China shot back in a foreign ministry statement posted by the Chinese Embassy in the U.S. "The U.S. should stop creating confusion." Trump, speaking to reporters aboard Air Force One later on Friday, said it would be a win if China would open up its markets for U.S. products and that tariffs could make that happen. "Free up China. You know, let us go in and work China," he said. "That would be great. That would be a big win, but I'm not even sure I'm going to ask for it because they don't want it open." On Saturday, Chinese Foreign Minister Wang Yi said Beijing abides by international rules on U.S.-imposed tariffs and would seek solidarity with other countries. "Certain countries adhere to their own priorities, engage in bullying pressure and coercive transactions, and provoke trade wars for no reason, exposing their extreme egoism," Wang said on the sidelines of a regional meeting in Kazakhstan, according to a statement from China's foreign ministry. The back-and-forth adds to the substantial uncertainty surrounding Trump's erratic tariff policy, not just around China, but also as it pertains to the dozens of countries scrambling to strike their own deals to ease the burden of the hefty import taxes he has unleashed since returning to the White House in January. His team of negotiators was conducting what amounted to a lightning round of trade talks with foreign officials who had swarmed Washington this week for the spring meetings of the International Monetary Fund and World Bank Group. But while Trump officials including Treasury Secretary Scott Bessent touted indications of swift progress, many of their counterparts were more circumspect. Finance chiefs at the IMF were heading home with renewed urgency to diminish the risks presented by the tariffs. "I'm walking away from these meetings with a clear sense of everything that is at stake and the risks that are there for jobs, for growth, for living standards all over the world," Irish Finance Minister Paschal Donohoe told Reuters. "The meetings here... reminded me of why we need to leave no stone unturned in the next few weeks and months to see how we can reduce that uncertainty." DE-ESCALATION While clarity on whether deals are actually being struck to avoid the imposition of even steeper tariffs in early July, there were signs of some de-escalation. China exempted some U.S. imports from its steep tariffs as business groups said Beijing has allowed some U.S.-made pharmaceuticals to enter the country without paying the 125% duties that Beijing imposed earlier this month in response to Trump's 145% tariffs on Chinese imports. Also, a list of 131 product categories said to be under consideration for exemptions was circulating among some businesses and trade groups. Reuters could not verify the list, which includes vaccines, chemicals and jet engines, and China has not yet communicated publicly on the issue. Trump's administration has also in recent days signaled it is looking to defuse the tension with China, with Bessent saying both sides see the current state of play as untenable. Trump told reporters at the White House that he was very close to a deal with Japan. That is seen by analysts as a "test case" for other bilateral trade agreements, though talks could be difficult. Some expect Prime Minister Shigeru Ishiba and Trump to announce a pact when they meet at the summit of the Group of Seven nations in Canada in June. Trump also told TIME that he had made "200 deals" that would be completed within three to four weeks, though he declined to provide specifics. He said he would consider it a "total victory" if tariffs were still 20% to 50% a year from now. The president has argued that his thicket of trade barriers will revive U.S. manufacturing industries that have been hollowed out by global competition. Economists, however, broadly warn that they would lead to higher prices for U.S. consumers and increase the risk of recession. U.S. stocks were on track for a weekly gain, though they are down roughly 10% since Trump returned to office in January, lagging indexes in other countries, while the dollar has fallen at an unprecedented rate. European and Asian stocks headed for a second straight week of gains on Friday and the dollar eyed its first weekly rise in more than a month, as investors took comfort from signs the U.S. and China were prepared to pull back from their trade war. Wall Street's main indexes rose slightly as investors struggled for clarity on the U.S.-China trade front. In addition to the country-specific tariffs, Trump has also imposed a blanket 10% tariff on all other U.S. imports and higher duties on steel, aluminum and autos. He has also floated additional industry-specific levies on pharmaceuticals and semiconductors. That could cause drug prices in the U.S. to rise by up to 12.9%, according to an industry estimate. Trump's tariffs dominated discussions at the IMF meetings this week, where finance ministers angled for one-on-one meetings with the U.S. treasury secretary. Bessent characterized initial talks with South Korea as "very successful" on Thursday, which Seoul called a "good start." Further discussions are scheduled for next week. Switzerland said it was satisfied with its initial meeting with Bessent. The U.S. trade office said it is "constantly engaged" with Japan and other countries, but said Trump would ultimately decide whether they would proceed. There was little sign of tangible progress with other countries, despite the urging of IMF head Kristalina Georgieva, who warned this week they could cause a severe slowdown in global growth. https://www.reuters.com/business/autos-transportation/china-waives-tariffs-some-us-goods-denies-trumps-claim-that-talks-are-underway-2025-04-25/

2025-04-25 20:32

Development Committee urges support for affordable energy World Bank's gender, equality strategy endorsed by steering group US Treasury's Bessent criticizes lender's "mission creep" WASHINGTON, April 25 (Reuters) - The World Bank's steering committee on Friday endorsed the lender's plans to explore options to expand energy access, including potential financing for nuclear energy, in a move in line with directives to broaden energy financing by U.S. President Donald Trump's administration. But the group's statement also endorsed the development lender's gender and equality strategy, just days after U.S. Treasury Secretary Scott Bessent on Wednesday said the World Bank and the International Monetary Fund had suffered from "mission creep" straying too far from their core development and economic stability mandates into climate change, gender and inclusion issues. Sign up here. A statement from the World Bank and International Monetary Fund joint Development Committee called on the World Bank Group (WBG) to work towards providing energy access to 300 million Africans by 2030. "We encourage the WBG to explore further options for increased affordable and reliable energy access, including potential support for nuclear energy," the Development Committee said. Bessent urged the World Bank to focus on energy affordability rather than seeking to "meet distortionary climate financing targets." He welcomed the lender's plan to end a prohibition on the bank's nuclear energy financing and urged it to support gas and other fossil-fuel-based energy production. The Development Committee noted the bank's target to devote 45% of its lending to climate activities by fiscal year 2026, but said that this should respond to "client requests for mitigation support including access to electricity, effective and resilient transportation solutions, biodiversity, sustainable food production and climate adaptation projects." TAKING A STAND The panel's statement fully endorsed the World Bank Group's gender strategy and called for further efforts to promote equality. "We commend the WBG for its programs that expand economic opportunities for women entrepreneurs, including its work to provide 80 million more women and women-led businesses with capital, and elevate human capital for women and girls," the statement said. German Development Minister Svenja Schulze told reporters she pressed for inclusion of critical issues such as women's rights and climate during the Development Committee's discussions. "I insist on mentioning women’s rights and empowerment and climate change concerns, even if the U.S. is pressuring the bank to retreat from those goals," Schulze said, adding that EU members make up 23% of the bank's shareholdings, with the U.S., the largest single shareholder, at 16%. "We set a course for the bank over the past two years, and we must stick to it,” Schulze said. Participants noted that the United States did not speak first during the Development Committee meeting as it has traditionally done, and there was little support for its views, except from Russia. One participant, who asked not to be identified, said the U.S. stance toward the World Bank was surprising after decades of strong support, noting that it remained unclear if Washington would make good on its pledge to provide $4 billion for the International Development Association, the bank's fund for the World's poorest countries. Bessent said that a decision whether to proceed with the pledge, made by former President Joe Biden, would depend on U.S. budget deliberations and implementation of reforms to the World Bank. https://www.reuters.com/business/energy/world-bank-energy-financing-expansion-endorsed-by-development-committee-2025-04-25/

2025-04-25 20:28

QUITO, April 25 (Reuters) - A magnitude 6.3 earthquake struck near the coast of Ecuador on Friday, the European Mediterranean Seismological Centre (EMSC) said, injuring at least 20 people, damaging buildings in the city of Esmeraldas and temporarily shutting down some oil infrastructure. The quake struck at a depth of 23 km (14.29 miles), EMSC said, with Ecuadorean authorities ruling out issuing a tsunami warning. Sign up here. The government said in a report that 20 people were injured and around 135 families were affected by the earthquake. Several public buildings and private homes were damaged, and some areas also experienced power outages. President Daniel Noboa, in a post on social media platform X, said the government would work to set up shelters, deliver humanitarian aid kits and "assist with everything our people need." The two pipelines operating in Ecuador, SOTE and OCP, resumed pumping crude oil after being temporarily suspended as a precautionary measure following the earthquake. State-owned Petroecuador said there was no impact on exports. The Esmeraldas Refinery, the country's largest with a capacity of 110,000 barrels per day (bpd), still remains shut for inspection, Petroecuador said. Ecuador's Geophysical Institute, which estimated the quake's magnitude at 6.0, also reported a second earthquake with a magnitude of 4.1 minutes later in the province of Guayas. https://www.reuters.com/business/environment/magnitude-63-earthquake-strikes-near-coast-ecuador-region-emsc-says-2025-04-25/

2025-04-25 20:23

Indexes up: Dow 0.05%, S&P 500 0.74%, Nasdaq up 1.26% Indexes post weekly gains Alphabet gains following upbeat first-quarter results Intel drops after weak forecast NEW YORK, April 25 (Reuters) - Wall Street advanced on Friday, notching weekly gains as investors parsed a spate of earnings and looked for signs of easing tensions in the U.S.-China trade dispute. The S&P 500 and the Nasdaq were bolstered by gains in the "magnificent seven" group of artificial intelligence-related megacaps, while the blue-chip Dow was more muted. Sign up here. The small cap Russell 2000 (.RUT) , opens new tab enjoyed its largest weekly percentage gain since November. Beijing exempted some U.S. imports from its 125% tariffs but denied Trump's negotiation claims, on the heels of recent de-escalatory statements from Treasury Secretary Scott Bessent, in the latest sign that the world's two largest economies are dialing back their trade war tensions, which have rattled markets for weeks. "We're looking at a nice finish to what was a pretty strong week," said Greg Bassuk, CEO at AXS Investments in New York. "The week kicked off with a strong sell sentiment but a real robust rebound followed. It's been a pretty strong week and it's largely been sparked by a sense of de-escalation of both the trade war with China." First-quarter earnings season has hit full-stride, with 179 of the companies in the S&P 500 having reported. Of those, 73% have beaten expectations, according to LSEG. Analysts now see aggregate S&P 500 earnings for the January to March period of 9.7% year-on-year, sunnier than the 8.0% estimate as it stood on April 1, per LSEG. But investors are largely looking past results and parsing forward guidance, particularly lowered or pulled projections due to economic uncertainties and dampening consumer spending. The University of Michigan released its final take on April consumer sentiment, and while the index was upwardly revised, it was still at the lowest level since July 2022 and inflation expectations remained hot. The Dow Jones Industrial Average (.DJI) , opens new tab rose 20.10 points, or 0.05%, to 40,113.50, the S&P 500 (.SPX) , opens new tab gained 40.44 points, or 0.74%, to 5,525.21 and the Nasdaq Composite (.IXIC) , opens new tab gained 216.90 points, or 1.26%, to 17,382.94. Of the 11 major sectors in the S&P 500, consumer discretionary (.SPLRCD) , opens new tab and tech (.SPLRCT) , opens new tab led the gainers, while materials (.SPLRCM) , opens new tab suffered the largest percentage loss. Alphabet (GOOGL.O) , opens new tab shares advanced 1.7% after the Google parent posted a 28% jump in Google Cloud revenue and assured investors that its AI investments are paying off. Intel (INTC.O) , opens new tab provided weak revenue and profit forecasts, sending the chipmaker's stock down 6.7%. Shares of oilfield services provider SLB (SLB.N) , opens new tab dipped 1.2% after the company missed first-quarter profit estimates and warned of a potential industry-wide shift due to economic uncertainty and tariff risks. Charter Communications (CHTR.O) , opens new tab jumped 11.4% after the broadband and cable company beat revenue estimates and added more subscribers than expected. Advancing issues outnumbered decliners by a 1.33-to-1 ratio on the NYSE. There were 54 new highs and 27 new lows on the NYSE. On the Nasdaq, 2,317 stocks rose and 2,024 fell as advancing issues outnumbered decliners by a 1.14-to-1 ratio. The S&P 500 posted 4 new 52-week highs and 6 new lows while the Nasdaq Composite recorded 32 new highs and 47 new lows. Volume on U.S. exchanges was 14.30 billion shares, compared with the 19.13 billion average for the full session over the last 20 trading days. https://www.reuters.com/world/china/wall-street-rises-signs-chinas-tariff-relief-upbeat-alphabet-results-2025-04-25/

2025-04-25 20:08

WASHINGTON, April 25 (Reuters) - International Monetary Fund member countries said on Friday that rising trade tensions were sapping growth and fueling uncertainty as well as market and financial stability risks, but reaffirmed their commitment to the institution as critical to helping countries navigate a difficult environment. In a chair's statement, the IMF's steering committee also reaffirmed prior foreign exchange commitments and voiced support for a realignment of quotas, or shareholding, that better reflects countries' positions in the global economy. Sign up here. "The world economy is at a pivotal juncture," the International Monetary and Financial Committee (IMFC) said in a statement as the spring meetings of the IMF and World Bank drew to a close. "Following several years of rising concerns over trade, trade tensions have abruptly soared, fueling elevated uncertainty, market volatility, and risks to growth and financial stability." The message comes at the end of a tense week for policymakers and investors anxious about U.S. President Donald Trump's moves to upend global trade and his commitment to international institutions. The IMF on Tuesday slashed its economic forecasts for the U.S., China and most countries, citing the impact of U.S. tariffs now at 100-year highs and warning that rising trade strife would further slow growth. It forecast global growth of 2.8% for 2025, down half a percentage point from its January forecast. Saudi Arabia's Finance Minister Mohammed Al-Jadaan, who chairs the International Monetary and Financial Committee (IMFC), said the Fund must continue to focus on its core mandates, including expanding trade and growth. "Addressing global debt vulnerabilities remains a priority for our members, especially for low-income and vulnerable countries," Al-Jadaan told a news conference in Washington. IMF Managing Director Kristalina Georgieva acknowledged that the raft of current geopolitical flare-ups, especially Trump's push to redesign world trade with a barrage of tariffs, had distracted from discussions about other pressing challenges, including artificial intelligence, in public and behind closed doors. She said it was encouraging that members had been able to engage in open conversations and share their views "in a fair space," but said she didn't want to minimize the discord. "I don't want to sugarcoat - we still have quite a challenging time," she said at the news briefing. Gathering members to talk about Syria had also given a new sense of urgency and purpose to turning a place of conflict into a stable and economically successful country benefiting the region and the world, Al-Jadaan said. "It is not just about the money, it's about the work that I and other partners can deliver and capacity development, quality data and timely advice." Al-Jadaan said trade had been the overriding concern during the meetings but he remained optimistic that solutions could be found after a week of candid and frank discussions. "Actually today, we are holding in a lot better position than when we started the week. People understand the consequences and are working together in a constructive way to resolve tensions," he said. https://www.reuters.com/markets/asia/imf-policy-committee-underscores-trade-risks-global-economy-commits-funds-role-2025-04-25/

2025-04-25 19:43

MEXICO CITY, April 25 (Reuters) - Mining and transport conglomerate Grupo Mexico reported a 17% jump in first-quarter net profit on Friday, primarily driven by higher metal prices. Net profit rose to $1.09 billion, well above the $816 million estimate from analysts polled by LSEG, as copper and silver prices surged and the miner trimmed production costs. Sign up here. Shares climbed around 2% in afternoon trading. Copper production and sales were nearly flat from the year-ago quarter, with output from U.S. unit Asarco slipping. Prices for the red metal, however, rose 18% from a year ago while silver leaped some 38%. That brought revenue for Grupo Mexico, which also operates sprawling freight railroads and an infrastructure division, up 10% to $4.20 billion in the quarter. The company also touted trimmed production costs for copper and byproducts as adding an earnings boost. Grupo Mexico, controlled by billionaire German Larrea, is one of the world's largest copper producers with mines in Peru, the United States, Spain and its home base of Mexico. The company could be at risk from the trade war breaking out between the United States and China, with copper prices slumping since the end of the first quarter. "Although we maintain a very positive long-term outlook for copper, we believe an intense commercial war between the U.S. and China will affect economic growth worldwide, consequently impacting copper demand," mining head Leonardo Contreras said in the firm's results call. Beijing imposed 125% duties on U.S. shipments earlier this month in response to U.S. President Donald Trump's 145% tariffs on Chinese imports. Copper was exempted from Trump's sweeping tariffs in March, though analysts say import taxes on the metal could be coming as well. Contreras declined to say how Grupo Mexico was planning to offset the impact of potential tariffs on copper shipped into the United States. https://www.reuters.com/business/miner-grupo-mexico-posts-17-profit-jump-higher-metals-prices-2025-04-25/