Economy

Germany would be the big loser if a Trump presidency sparked a tit-for-tat trade war between the United States and Europe, with Germany’s previously much-envied industrial strength potentially becoming an acute vulnerability.

At its final policy meeting of 2024, Bank Negara Malaysia (BNM) maintained its overnight policy rate at 3.00%, where it has been since May 2023.Economists polled by Reuters expect the central bank will stand pat on rates until at least 2026. 

Australia’s central bank held interest rates steady on Tuesday, as expected, and cautioned policy would need to stay restrictive for some time yet, strongly suggesting borrowers could expect no Christmas cheer this year.

The move builds on May’s budget, which attacked cost of living pressures in Australia and gave debt relief for students, as well as more investment to make medicines cheaper, and a boost to a rent assistance programme.

UK markets were spared painful blows from the new Labour government’s first budget on Wednesday, which announced 40 billion pounds of tax hikes to plug shortfalls but soothed jitters about public spending blowouts and debt market disorder.

Republican U.S. presidential candidate Donald Trump said on Tuesday the European Union would have to “pay a big price” for not buying enough American exports if he won the Nov. 5 election.

 Germany needs both structural reforms and more investment in public infrastructure to overcome recession, the European head of the International Monetary Fund said in an interview with Sueddeutsche Zeitung.

China renewed warnings to the European Union that if the bloc conducts separate negotiations with electric vehicle companies while in talks with China, that would “shake mutual trust” and interfere with the overall negotiations, Chinese commerce ministry said on Monday.

The European Union and China have agreed to hold further technical negotiations soon on possible alternatives to tariffs on China-built electric vehicles, although significant gaps remain, the European Commission said on Friday.

China firmly opposes unilateral sanctions and long-arm jurisdiction without the basis of international law and the authorization of the UN Security Council,” ministry spokesperson He Yadong said at a press briefing.