Category: bussines

Stock markets worldwide dropped sharply on Wednesday as US-China trade tensions escalated, triggering a flight to safe assets and record-high gold prices, Reuters reported. New US licensing restrictions targeting sales of Nvidia and AMD’s AI chips to China sent shockwaves through global markets. Nvidia warned the move could cost $5.5 billion, with its shares plunging almost 7%. The global MSCI stock index fell 1.5%. In the US, the Dow slid 1.7%, the S&P 500 lost 2.2%, and the Nasdaq dropped 3.1%. “Capital markets remain caught between news about new tariffs and, on…

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CHICAGO: The US central bank has said it is pausing any changes to interest rates, as concerns grow that rising tariffs could drive up inflation while weighing on economic growth. US Federal Reserve chair Jerome Powell said Wednesday that the Fed would wait for more data on the economy’s direction before changing interest rates, and characterised recent market volatility as a logical reaction to the Trump administration’s dramatic shifts in tariff policy. “For the time being, we are well positioned to wait for greater clarity before considering any adjustments to our…

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China slammed Washington’s tariff hike on Wednesday, revealing that certain Chinese goods now face duties as high as 245%, and urged the US to end its coercive tactics and intimidation. The White House said in a factsheet on Tuesday that these tariffs were “a result of its retaliatory actions”. According to the Oval Office, it is up to Beijing to make the first move towards ending the dispute, which economists warn may cause a global recession. “The ball is in China’s court. China needs to make a deal with us.…

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ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday credited the Pakistan-China friendship and Beijing’s support for helping Islamabad secure an International Monetary Fund (IMF) bailout package, saying it would not have been possible without the neighbouring country’s assistance. The premier’s remarks — made during a ceremony held in connection with the PM’s initiative for capacity building of 1,000 agriculture graduates in China — came in the context of last month’s deal between Islamabad and the IMF on the first review of the ongoing 37-month bailout programme worth $7 billion. Upon approval…

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China has instructed its airlines to suspend further deliveries of Boeing aircraft, in retaliation to the United States’ decision to impose 145% tariffs on Chinese imports, Bloomberg News reported on Tuesday, citing sources familiar with the matter. Boeing shares slipped 0.5% in midday trading, as the company faces mounting pressure in one of its biggest growth markets, where European rival Airbus already maintains a dominant position. The global aerospace sector is now being pulled deeper into the US-led trade war, with airlines, planemakers, and suppliers reassessing multibillion-dollar contracts. The move follows recent…

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ISLAMABAD: Prime Minister Shehbaz Sharif-led federal government on Tuesday decided to maintain the prices of petroleum products at the current level for the next fortnight. Chairing a federal cabinet meeting in Islamabad today, Prime Minister Shehbaz Sharif said, “The government decided not to pass on the benefit of lower fuel prices in the international market to people. Savings from petroleum prices will be used to heal the nation’s wounds.” The prime minister said that the funds would be used to dualize the most important highway of Balochistan, the N-25, which…

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Pakistan’s sovereign credit rating was raised to B- from CCC+ by Fitch Ratings, which pointed to stronger fiscal discipline, a more stable external account, and improved economic governance. The agency assigned a stable outlook. The rating agency said in a statement on Monday that the move reflected growing confidence in Pakistan’s ability to sustain tighter budget controls and implement reforms under its ongoing International Monetary Fund (IMF) programme. The upgrade comes as Islamabad looks to maintain momentum following its agreement with the IMF in March to review a $7 billion…

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Stocks climbed for a second consecutive session on Tuesday as investor confidence remained strong following record-high remittances and upbeat signals from the central bank on foreign exchange reserves and external financing. “The positive market today is mainly due to the update given yesterday on the economic front by the governor of the State Bank, in which remittance figures of $4.1 billion were shared,” said Sana Tawfik, Head of Research at Arif Habib Limited. “Then there was news that Fitch will most likely upgrade our rating. The governor also said yesterday…

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WASHINGTON: A senior official at the US central bank has warned that President  Donald Trump’s tariff policies could seriously slow economic growth, raise unemployment, adding that the bank may have to go for deeper interest rate cuts if the steep tariffs remain imposed for too long. Trump unveiled sweeping tariffs in early April against most US trading partners in a bid to address practices that Washington deems unfair, including a 10 percent global levy and higher country-specific rates, especially on China. The higher rates on countries other than China have been…

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The recent slide in global oil prices could help shield Pakistan from the full impact of proposed US tariffs, State Bank of Pakistan (SBP) Governor Jameel Ahmad said on Monday. Trump, last week announced a 90-day pause on tariffs, saying he took the decision after more than 75 countries had reached out to negotiate and did not retaliate against the US. Earlier, he had imposed 29% tariffs on Pakistani exports to the US. Speaking on Geo News programme “Aaj Shahzeb Khanzada Kay Sath”, the SBP governor said: “[Pakistan’s] total export to the…

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