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Worst week for US stocks since Covid crash as China hits back on tariffs

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[pic BBC]

Stock market turmoil deepened on Friday, as China hit back at tariffs announced by US President Donald Trump, raising the likelihood of an extended trade war and damage to the global economy.

All three major stock indexes in the US plunged more than 5%, with the S&P 500 dropping almost 6%, capping the worst week for the US stock market since 2020.

In the UK, the FTSE 100 plunged almost 5% – its steepest fall in five years, while Asian markets also dropped and exchanges in Germany and France faced similar declines.

Trump, who has vowed to remake the global trade order, dismissed concerns about the market shock, noting that the US labour market is strong.

“Hang tough,” he urged his followers on social media. “We can’t lose.”

The global stock market has lost trillions in value since Trump announced sweeping new 10% import taxes on goods from every country, with products from dozens of countries, including key trading partners such as China, the European Union and Vietnam, facing far higher rates.

Analysts say the moves, some of which are due to go into effect as soon as Saturday, amount to the biggest tax increase in the US since 1968.

They expect the measures to lead to a contraction in trade, and have warned they could drive many countries into an economic recession.

China responded to Trump on Friday by hitting US goods with import taxes of 34%, curbing exports of key minerals and adding American firms to its blacklist, describing Trump’s actions as “bullying” and a violation of international trade rules.

Other countries appear to be hoping they will be able to negotiate deals, despite conflicting signals from the White House about its appetite for talks.

Maroš Šefčovič, the trade commissioner for the EU, which has been planning to retaliate, said on Friday that he had had a “frank” two-hour exchange with US officials, and wrote on social media the trade relationship needed a “fresh approach”.

“The EU’s committed to meaningful negotiations, but also prepared to defend our interests,” he said. “We stay in touch.”

Trump’s moves are consistent with promises he made on the campaign trail last year.

But they were more far-reaching than some analysts had expected, triggering the worst week for the stock market since 2020, when the Covid-19 pandemic led to global shutdowns and other disruption.

The sell-off started with firms such as Apple and Nike, which rely heavily on suppliers in Asia. But on Friday, it moved into sectors that would typically not face the direct impact of tariffs, such as consumer staples, healthcare and utilities.

“Candidly the mood is pretty sour and it should be,” said Mike Dickson, head of research and quantitative strategies at Horizon Investments in the US, warning that it will take weeks to understand the impact of Trump’s tariffs.

[BBC]

 



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BCB to follow government directive before finalising Pakistan tour

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Bangladesh were initially scheduled to play five T20Is in Pakistan from May 25 to June 3 [Cricinfo]

The BCB has said that they will rely on the Bangladesh government’s directive before finalising their tour to Pakistan later this month. Bangladesh were originally scheduled to play five T20Is there from May 25 to June 3, but the PSLs schedule was revised following cross-border tensions between Pakistan and India.

According to the revised fixtures, the PSL final will now be held on May 25, when Pakistan and Bangladesh were originally scheduled to play the first T20I.

ESPNcricinfo has learned that the PCB has sent a new schedule for the T20Is between Pakistan and Bangladesh, with the first match now slotted for May 27, and the last on June 5.

BCB’s media committee chairman Iftekhar Rahman said they will rely on information from government security agencies and the Bangladesh high commission in Islamabad to take the final decision.

“Once we receive official communication about the dates and venues [of the tour], we will forward it to the government,” Rahman said. “The BCB is not the decision-maker in this matter. If the government agencies and our embassy declare Pakistan safe for travel, only then will we proceed.

“In our previous meeting, we agreed that any such situation would be referred to the foreign and home ministries. Once we get clearance from all relevant bodies, we will finalise the tour. Security concerns were more significant in the past, but Pakistan has proven it can ensure safety. Still, given the current circumstances, we need to assess whether the situation across the country is stable before sending the team.”

Before playing Pakistan, Bangladesh are scheduled to play two T20Is against UAE in Sharjah on May 17 and 19. They were then supposed to fly to Lahore on May 21.

[Cricinfo]

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Trump pledges to lift Syria sanctions as he seals $142bn arms deal on Saudi visit

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US President Donald Trump and Crown Prince Mohamed Bin Salman photographed with other officials in Riyadh[BBC]

President Donald Trump has said the US has “no stronger partner” than Saudi Arabia during his first major foreign trip – a whirlwind visit of Gulf countries mainly focused on shoring up investment.

Speaking in Riyadh, the US president also pledged to lift all sanctions against Syria, saying it was now time for the country to move forward with “a chance at greatness”.

Day one of the tour saw the US and Saudi Arabia announce a $142bn (£107bn) arms deal, as well as other investments that the country’s crown prince said could eventually be worth $1tn.

Trump also made Saudi Arabia the first foreign stop during his first term, in 2017. The rest of his trip will include stops in Qatar and the UAE.

Trump’s arrival in Saudi Arabia on Tuesday was met with a grand reception, including a lavish lavender-coloured carpet rolled out to greet him. He had even chosen a purple tie to match it.

Riyadh swapped red carpets for lavender in 2021, saying that it was a symbol of the kingdom’s desert wildflowers and generosity.

Crown Prince Mohammed bin Salman met Trump on the tarmac and provided an honour guard of Arabian horses to accompany his presidential limo.

In his remarks at an investment forum, Trump lauded the US-Saudi relationship as “more powerful than ever before”.

“From the moment we started we’ve seen wealth that has poured – and is pouring – into America,” he said.

Trump is trying to woo foreign investors to the US to boost the American economy, a key focus of his administration in the nearly four months of his second term.

“I like him too much,” Trump said of Saudi Arabia’s crown prince and de-facto ruler, Mohammed bin Salman. “That’s why we give so much.”

Getty Images Elon Musk is standing with other officials overlooking a 3D model
Tesla CEO Elon Musk is one of a few corporate leaders that joined Donald Trump on his trip to Riyahd [BBC]

The pomp and ceremony was a step up from the muted welcome for former US President Joe Biden, who travelled to the oil-rich kingdom in 2022 to seek their help in lowering petrol prices, fist-bumping the crown prince.

That visit came two years after he declared Saudi Arabia a “pariah” state following the 2018 murder of dissident journalist Jamal Khashoggi.

Trump flew to the Gulf to strike financial deals and argued in his speech that it is through this kind of commerce and economic development that the Middle East would transcend violence and division.

Underscoring his commitment to deal-making, Trump was joined by a number of business leaders including billionaire ally Elon Musk, OpenAI CEO Sam Altman, BlackRock CEO Larry Fink and Nvidia CEO Jensen Huang.

The high-profile executives are meeting a Saudi Arabia eager to diversify its oil-rich economy by increasing its artificial intelligence capabilities.

Mr Huang announced during the visit that Nvidia will sell more than 18,000 of its latest AI chips to Saudi company Humain.

Getty Images Sam Altman stands next to other officals in a building in Riyadh
OpenAI CEO Sam Altman accompanied Donald Trump and other business leaders during the president’s trip to Riyadh [BBC]

During his address, Trump said it was his “dream” to have Saudi Arabia join the Abraham Accords, a deal brokered in his first administration that saw relations between Israel and some Gulf countries normalised for the first time.

But his good friend, Mohammed bin Salman, has made it clear that will not happen until there is a permanent end to the war in Gaza and a clear path to Palestinian statehood.

There is a limit to what this friendship can deliver.

Trump only briefly addressed the ongoing conflict between Israel and Hamas.

He told those in attendance that people in Gaza deserved a “better future”, which had been held back by Hamas choosing “to kidnap, torture and target” for “political ends” – a reference to the 7 October 2023 attack on Israel.

Trump also announced he was lifting sanctions on Syria to improve the country’s new government, a move he suggested was requested by Mohammed bin Salman.

“Oh, what I do for the crown prince,” the US leader said.

American sanctions on Syria had been in place for over a decade, meant to apply pressure and economic pain against the dictatorship of former President Bashar al-Assad, who was ousted in December.

Syria has since elected a new transitional president, creating an opening for renewed US diplomacy efforts.

The surprise announcement to lift the sanctions represents a sea change for Syria, described by its foreign minister Asaad Shibani as a “new start” in the country’s reconstruction path.

Robert Ford, who served as US ambassador to Syria under President Barack Obama, applauded the Trump administration’s move to lift sanctions.

“I visited Syria three months ago and the country is simply devastated after the 13-year civil war. It needs to rebuild, it needs reconstruction, it needs foreign financing to do that,” he told the BBC.

“So removing the sanctions, that will enable international capital flows to go into Syria from Gulf states, from other Arab states and from different aid agencies is absolutely vital.”

Trump was expected to meet Syrian President Ahmed al-Sharaa on Wednesday in Saudi Arabia.

From Riyadh, Trump will head to both Qatar and the UAE, which has already committed to investing $1.4tn in the US over the next decade.

[BBC]

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BBC cameraman haunted by Gaza’s malnourished children captures Israeli strike on hospital

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[pic BBC]

The war’s horrors multiply. The dead, the pieces of the dead. The dying. The starving. More and more of them now – all the weight of human suffering witnessed by a  brave BBC cameraman in Gaza.

The urge to avert our gaze can be overpowering. But the cameramen who work for the BBC cannot turn away, and on Tuesday one of them became a casualty himself. For their safetynthe names of the cameramen in Gaza are not revealed.

The BBC cameraman was not seriously wounded, but that was a matter of luck. The Israeli bombs launched into the car park of the European Hospital in Khan Younis killed and wounded dozens.

The Israelis say the leader of Hamas was hiding in a command-and-control compound under the hospital. The army said it conducted a “precise strike” – and blamed Hamas for”cynically and cruelly exploiting the civilian population in and around the hospital”. Hamas denies such charges.

At the time of the attack, families whose sick children are to be evacuated from Gaza were gathering in the hospital. There were also families waiting to meet children returning from treatment abroad.

[BBC]

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