Tensions between the US and China continue to swirl, even though fears of a renewed trade war cooled on Monday.<\/p>\n
US treasury secretary Scott<\/strong> Bessent<\/strong> has thrown more fuel on the fire overnight, by accusing China of trying to hurt the world\u2019s economy.<\/p>\n Bessent<\/strong> criticised Beijing for imposing new export controls on rare earths last week \u2013 a move which riled president Trump \u2013 suggesting the move would backfire.<\/p>\n He told the Financial Times<\/a>:<\/p>\n \u201cThis is a sign of how weak their economy is, and they want to pull everybody else down with them. Maybe there is some Leninist business model where hurting your customers is a good idea, but they are the largest supplier to the world.<\/p>\n If they want to slow down the global economy, they will be hurt the most.\u201d<\/p>\n<\/blockquote>\n Bessent\u2019s<\/strong> comments come as the mood in the markets turns sour again, following a rally on Monday <\/a>after Trump seemed to calm a situation which he inflamed on Friday by threatening China with 100% tariffs<\/p>\n Stock markets across the Asia-Pacific region are mainly in the red today, with China\u2019s CSI 300<\/strong> index down 0.6%, Hong Kong\u2019s Hang<\/strong> Seng<\/strong> losing 1.2% and Japan\u2019s Nikkei<\/strong> dropping by 2.1%.<\/p>\n Cryptocurrencies are also weakening, with Bitcoin dropping by 2.7% and ether shedding 5%.<\/p>\n The row threatens to overshadow the annual meetings of the World Bank Group (WBG) and the International Monetary Fund (IMF) which are taking place in Washington DC this week.<\/p>\n The agenda<\/p>\n 7am BST: ONS labour market<\/p>\n<\/li>\n 8am BST: UK grocery inflation data<\/p>\n<\/li>\n 9am BST: IEA\u2019s monthly oil market report<\/p>\n<\/li>\n 2pm BST: IMF World Economic Outlook press briefing<\/p>\n<\/li>\n 3.15pm BST: IMF\u2019s Global Financial Stability Report<\/p>\n<\/li>\n<\/ul>\n Share<\/a><\/p>\n Key events<\/p>\n Show key events only<\/p>\n Please turn on JavaScript to use this feature<\/p>\n China hits back at US on shipping with Hanwha curbs<\/p>\n Shares in South Korean shipping giant Hanwha<\/strong> Ocean<\/strong> have dropped by 5.75% today after China sanctioned its US units and threatened further retaliatory measures on the industry.<\/p>\n Bloomberg<\/strong> reports<\/a>:<\/p>\n The sanctions, targeting<\/a> five US units of Hanwha Ocean Co.,<\/a> fueled a slump in global equities on Tuesday as traders dialed back hopes for an easing of tensions between the world\u2019s largest economies\u2026.<\/p>\n In its announcements on Tuesday, China said it was looking into <\/a>the impact of the US Trade Representative\u2019s Section 301 investigation into the nation\u2019s maritime sector, and may roll out more responses.<\/p>\n Hanwha Ocean\u2019s subsidiaries assisted and supported investigative activities of the US government, thereby endangering China\u2019s sovereignty, security and development interests, according to a commerce ministry statement<\/a>.<\/p>\n<\/blockquote>\n Share<\/a><\/p>\n Updated at\u00a005.00 EDT<\/p>\n Silver price hit record high in “almighty short squeeze”A silver coin commemorating the 2,500 years of the Battle of Thermopylae. Photograph: Yannis Kolesidis\/EPA<\/p>\n Silver has hit a record high today, as US-China trade tensions fuel a dash into safe-haven assets.<\/strong><\/p>\n Rising expectations of US interest rate cuts, and the on-going \u2018debasement trade\u2019, also helped to push silver to a record high of $53.60 per ounce.<\/p>\n Silver is also being pushed up by \u201can almighty short squeeze, and physical supply crunch,\u201d reports Michael Brown<\/strong>, senior research strategist at Pepperstone<\/strong>.<\/p>\n Concerns about a lack of liquidity in London have sparked a worldwide hunt for silver, with benchmark prices soaring to near-unprecedented levels over New York, Bloomberg report.<\/p>\n Share<\/a>European markets dip in risk-off mood<\/p>\n Europe\u2019s stock markets have followed their lead from Asia, and dropped in early trading.<\/strong><\/p>\n In London, the FTSE<\/strong> 100<\/strong> share index has dropped by 30 points, or 0.3%, with mining companies leading the fallers.<\/p>\n There are larger losses in other markets, with Germany\u2019s DAX<\/strong> down 1%, and France\u2019s CAC<\/strong> dipping by 0.85%.<\/p>\n Victoria Scholar, <\/strong>head of investment at interactive investor<\/a>, <\/strong>says:<\/p>\n \u201c<\/strong>Trade tensions between the US and China are escalating as both countries started collecting port fees on shipping firms, pushing up costs on both sides. This has dashed global market sentiment with a sea of red across Europe after yesterday\u2019s market reprieve.<\/p>\n US futures are pointing lower, reversing course after the S&P 500 logged its best day since May and the Nasdaq closed up 2.2%. Cryptocurrencies are selling off with bitcoin down over 3% and ether and solana both nursing losses of over 5% each. Oil is also caught up in the selling with brent down over 1%.\u201d<\/p>\n<\/blockquote>\n Share<\/a><\/p>\n Mediterranean<\/strong> Shipping<\/strong> Company<\/strong> has denied any involvement in the potential acquisition of a stake in British airline Easyjet (see earlier post<\/a>) after reports it was considering a move.<\/p>\n A spokesperson told Reuters:<\/p>\n \u201cMSC denies any involvement in this matter.\u201d<\/p>\n<\/blockquote>\n Share<\/a><\/p>\n The new port fees rolled out by the US and China today show that the trade war has \u201csailed into its next act\u201d, says Stephen Innes<\/strong>, managing partner at SPI Asset Management, <\/strong>adding:<\/p>\n This time the battlefield isn\u2019t cyberspace or chip fabs\u2014it\u2019s container ports. The U.S. and China have turned the world\u2019s docks into toll booths.<\/p>\n<\/blockquote>\n Share<\/a>EasyJet shares jump on report of interest from MSC<\/p>\n A flurry of takeover talk speculation has pushed up shares in budget airline EasyJet this morning.<\/strong><\/p>\n EasyJet\u2019s<\/strong> shares are up over 7%, leading the risers on the FTSE<\/strong> 100<\/strong> share index.<\/p>\n The rally appears to be sparked by a story in Italian newspaper Corriere della Sera, which is reporting that global logistics giant Mediterranean Shipping Company is reportedly working in tandem with an investment fund about possibly investing in the airline, which is worth around \u00a33.5bn..<\/p>\n According to Corriere della Sera, MSC has long wanted to add a passenger airline to its vast portfolio which includes ports, cruise ships and container ships, cargo carriers, and clinics.<\/p>\n Share<\/a><\/p>\n Updated at\u00a003.30 EDT<\/p>\n Close Brothers lift motor finance scandal bill to \u00a3300m UK lender Close Brothers<\/strong> has put aside an extra \u00a3135m to deal with the motor finance scandal, as lenders grapple with the rising cost of potential compensation claims.<\/p>\n The company is one of many lenders exposed to an ongoing scandal in which drivers were overcharged for loans as a result of commission paid to car dealers. It has now made a total provision of \u00a3300m to deal with potential costs.<\/p>\n It follows a similar warning from <\/a>Lloyds Bank<\/a><\/strong> yesterday, which announced it had made a further \u00a3800m provision to deal with the motor finance scandal, taking its total to almost \u00a32bn.<\/p>\n Both lenders have updated their estimates following a consultation paper by the Financial Conduct Authority<\/strong>. But Close Brothers said this morning:<\/p>\n \u201c[The group] does not believe the redress methodology proposed by the FCA appropriately reflects actual customer loss or achieves a proportionate outcome.<\/p>\n \u201c…the FCA\u2019s proposed approach to assessing unfairness does not align with the legal clarity provided by the supreme court judgement in respect of the \u201cJohnson\u201d case, which confirmed that the test for unfairness is highly fact specific and must take into account a broad range of factors. The group will continue to engage with the FCA in respect of these points.<\/p>\n<\/blockquote>\n This summer the supreme court sided with one of three consumer complaints related to car finance, with judges concerned about \u201cunfair\u201d treatment by car lenders towards <\/a>Mark Johnson<\/a><\/strong>, a 35-year-old factory worker from south Wales.<\/p>\n An FCA<\/strong> spokesperson said:<\/p>\n \u201cMany motor finance lenders did not comply with the law or the rules. It\u2019s time their customers get fair compensation. Recent court judgments show that liabilities exist no matter what.<\/p>\n \u201cWe believe our scheme is the best way to settle the issue for both consumers and firms, and alternatives would be more costly and take longer. We recognise not everyone will get everything they would like. But it\u2019s vital we draw a line under the issue so a trusted motor finance market can continue to serve millions of families every year.\u201d<\/p>\n<\/blockquote>\n Shares in Close<\/strong> Brothers<\/strong>, which is listed in London, have dropped by 2% in early trading.<\/p>\n Share<\/a>Pound falls after US jobs report<\/p>\n The pound is weakening this morning after new data showed a rise in UK unemployment, and a drop in numbers on company payrolls.<\/strong><\/p>\n The UK jobless rate rose to 4.8% in the June-August quarter, the Office for National Statistics has reported, its highest level since 2021.<\/p>\n The ONS\u2019s data also shows that regular wage growth dropped 4.7% in the quarter, down from 4.8% in the previous three months, a three-year low.<\/p>\n Average weekly earnings in the three months to August 2025 were up 4.7% on the year excluding bonuses, down slightly from 4.8% last month.<\/p>\n Including bonuses the rate was 5.0%, up from last month\u2019s figure of 4.8%.<\/p>\n Read the release \u27a1 https:\/\/t.co\/LxpFPc90Mb<\/a> pic.twitter.com\/nsPUZ6wxxS<\/a><\/p>\n \u2014 Office for National Statistics (ONS) (@ONS) October 14, 2025<\/a><\/p><\/blockquote>\n Adding to the disappointing picture, the number of payrolled employees is estimated to have fallen by 10,000 in September, and by 100,000 over the last year.<\/p>\n In response, the pound has dropped by over half a cent against the US dollar to $1.3275, close to a two-month low.<\/p>\n Chris<\/strong> Beauchamp<\/strong>, chief market analyst at IG<\/strong>, says:<\/p>\n \u201cThis morning\u2019s data provides little in the way of good news for the struggling UK economy, and puts more pressure on the Bank of England and the government to act to provide more support.<\/p>\n Sterling looks at the mercy of continued US dollar strength, both from a data outlook and as short positioning in the greenback continues to unwind.\u201d<\/p>\n<\/blockquote>\n Share<\/a><\/p>\n China has taken countermeasures against five U.S.-linked subsidiaries of South Korean shipbuilding firm Hanwha Ocean, <\/strong>Reuters reports.<\/strong><\/p>\n Organisations and individuals within China are prohibited from engaging in any transactions, cooperation or related activities with these entities, the Chinese commerce ministry said on Tuesday.<\/p>\n Share<\/a>China: If forced, we will fight to the end<\/p>\n China\u2019s Ministry of Commerce has urged the US to work with Beijing, and to show sincerity in trade talks.<\/strong><\/p>\n A spokesperson for the ministry said today:<\/p>\n \u201cThe U.S. side cannot seek talks on one hand while threatening to introduce new restrictive measures on the other. This is not the right way to get along with China.<\/p>\n \u201cChina\u2019s position concerning tariff or trade wars has been consistent — if forced to fight, China will fight to the end, and for talks, the door is open.<\/p>\n<\/blockquote>\n Share<\/a><\/p>\n Japan\u2019s Nikkei<\/strong> index has closed for the day, down 2.58%, it\u2019s biggest one-day fall since the market turmoil in April when Donald Trump kicked off his trade war.<\/p>\n Japan’s Nikkei Closes Down 2.58%, Biggest One-Day Drop Since April<\/p>\n \u2014 LiveSquawk (@LiveSquawk) October 14, 2025<\/a><\/p><\/blockquote>\n Japanese investors are nervous about the domestic political situation, following a split between the ruling Liberal Democratic Party and the smaller Komeito party.<\/p>\n Last Friday, Komeito quit their coalition, a move which makes it harder for the LDP\u2019s new leader, Sanae<\/strong> Takaichi<\/strong>, to become Japan\u2019s next prime minister.<\/p>\n Share<\/a><\/p>\n Updated at\u00a002.57 EDT<\/p>\n The US also began imposing tariffs on imported lumber, kitchen cabinets and some furniture today.<\/strong><\/p>\n The new levies, announced by Donald Trump last month, will introduce a 10% tariff on imports of softwood lumber, while duties on certain upholstered furniture and kitchen cabinets start at 25%.<\/p>\n The White House claimed the duties will boost US industries and protect national security. But, as they\u2019re paid by the importer, they risk pushing up the cost of building and fitting out a home.<\/p>\n Share<\/a>Trump and Xi still on track for meeting, Bessennt says<\/p>\n Scott Bessent has also revealed that US president Donald Trump remains on track to meet Chinese leader Xi Jinping in South Korea in late October<\/strong><\/p>\n Spealing to Fox Business, Bessent<\/strong> said:<\/p>\n \u201cThe 100% tariff does not have to happen. The relationship, despite this announcement last week, is good. Lines of communication have reopened, so we\u2019ll see where it goes.\u201d<\/p>\n \u201cPresident Trump said that the tariffs would not go into effect until November 1. He will be meeting with Party Chair Xi in Korea. I believe that meeting will still be on.\u201d<\/p>\n<\/blockquote>\n Bessent <\/strong>also claimed that \u201cWe have substantially de-escalated,\u201d \u2013 shortly before appearing to re-escalate by accusing China of trying to damage the the global economy.<\/a><\/p>\n Share<\/a>US and China to roll out tit-for-tat port fees todayA cargo ship sailing into the port in Qingdao, in China’s eastern Shandong province, on Monday. Photograph: AFP\/Getty Images<\/p>\n A new front has opened up in the bubbling US-China trade tensions today too \u2013 at the two country\u2019s ports.<\/strong><\/p>\n From today, the US and China will begin charging additional port fees on ocean shipping firms.<\/p>\n China said today it had started to collect the special charges on U.S.-owned, operated, built, or flagged vessels. Chinese-built ships would be exempted from the levies, though.<\/p>\n The US is also scheduled to start collecting similar fees today on ships linked to China. This is an attempt to shake China\u2019s grip on the global maritime industry and bolster U.S. shipbuilding.<\/p>\n Athens-based Xclusiv<\/strong> Shipbrokers<\/strong> Inc said in a research note:<\/p>\n \u201cThis tit-for-tat symmetry locks both economies into a spiral of maritime taxation that risks distorting global freight flows.\u201d<\/p>\n<\/blockquote>\n Share<\/a>Introduction: Scott Bessent accuses China of trying to damage global economy<\/p>\n Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.<\/strong><\/p>\n Tensions between the US and China continue to swirl, even though fears of a renewed trade war cooled on Monday.<\/p>\n US treasury secretary Scott<\/strong> Bessent<\/strong> has thrown more fuel on the fire overnight, by accusing China of trying to hurt the world\u2019s economy.<\/p>\n Bessent<\/strong> criticised Beijing for imposing new export controls on rare earths last week \u2013 a move which riled president Trump \u2013 suggesting the move would backfire.<\/p>\n He told the Financial Times<\/a>:<\/p>\n \u201cThis is a sign of how weak their economy is, and they want to pull everybody else down with them. Maybe there is some Leninist business model where hurting your customers is a good idea, but they are the largest supplier to the world.<\/p>\n If they want to slow down the global economy, they will be hurt the most.\u201d<\/p>\n<\/blockquote>\n\n
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![\"Lauren](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/10\/Lauren_Almeida.png\")
Lauren Almeida<\/p>\n\n
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