Connect with us

Published

on

Global stock markets and the dollar have rallied on hopes of two significant climbdowns by the Trump administration on issues blamed for a slump in values.

Remarks by the US Treasury secretary on punitive tariffs against China lifted the mood on Wall Street initially before the president himself moved to calm market trade war worries and also end speculation he could fire the head of the country’s central bank.

The Dow Jones Industrial Average and tech-focused Nasdaq Composite both ended Tuesday trading 2.7% up, erasing losses of the previous day.

Money latest: Are Treasury-backed savings now the best place for your cash?

Asian markets later followed that lead, with the Hang Seng in Hong Kong gaining 2.4%.

European indices also saw a strong opening, with the FTSE 100 up by more than 1.2%. It was led higher by Asia-focused banks HSBC and Standard Chartered.

US futures suggested Wall Street would pick up where it left off, with further strong gains expected.

More on Tariffs

The US dollar – badly hit by trade war implications in recent weeks – was at least a cent higher than a day earlier against many rival currencies including the pound.

The rally gathered steam on Tuesday evening when US Treasury secretary Scott Bessent told a private JPMorgan event that he expected a “de-escalation” in the spiralling spat with China.

It’s a fight that has seen US tariffs hit 145% and China responding with duties of 125%.

Please use Chrome browser for a more accessible video player

Trump: Tariffs are making US ‘rich’

According to a transcript obtained by the Associated Press news agency, he told the audience: “Neither side thinks the status quo is sustainable”, but he added that peace talks were yet to start in earnest and could take time to bear fruit.

His boss later struck a similar tone in remarks to reporters when he said the final tariff rate with China would come down “substantially” from the current 145%.

“It won’t be that high, not going to be that high,” Mr Trump said, adding: “We’re doing fine with China… we’re going to live together very happily and ideally work together.”

He gave no hint that he plans to ease wider tariffs on trading partners, including the UK which is currently subject to 25% tariffs on car, steel and aluminium imports and a wider 10% “baseline” tariff.

But the president did row back on an apparent threat, made last week, to sack the chair of the Federal Reserve Jerome Powell in revenge for the US central bank holding off on interest rate cuts that could provide some stimulus to the tariff-hit economy.

Mr Powell has said the Trump administration’s protectionist policies have created uncertainty over growth and the threat of higher inflation.

The president has dismissed those arguments but told reporters: “I have no intention of firing him”.

Federal Reserve chair Jerome Powell speaks at the DealBook Summit in New York, Wednesday, Dec. 4, 2024. (AP Photo/Seth Wenig)
Image:
Federal Reserve chair Jerome Powell was nominated for the role by Donald Trump in 2017. File pic: AP

His comments were widely seen as an attempt to calm financial market concerns that the independence of the country’s central bank was under threat.

Analysts cautioned there was a long way to go to recover values seen before the start of the trade war, with the Nasdaq remaining almost 16% down in the year to date alone.

US government borrowing costs also remain elevated.

Please use Chrome browser for a more accessible video player

What IMF said about the UK economy

Not helping sentiment were big downgrades to global growth forecasts by the International Monetary Fund on Tuesday.

Michael Brown, senior research strategist at Pepperstone, said of the investor mood: “Participants understandably remain jittery, not only as the haven value of both Treasuries and the USD (US dollar) continue to be called into question, but also as a huge degree of trade uncertainty continues to linger.

“As a reminder, the whole concept of ’90 deals in 90 days’ is currently running at ‘0 deals in 14 days’ which, to be frank, doesn’t quite have the same ring to it.”

Continue Reading

US

Michigan: 11 people stabbed in US supermarket – with six in critical condition

Published

on

By

Michigan: 11 people stabbed in US supermarket - with six in critical condition

At least 11 people have been stabbed at a Walmart supermarket in Michigan, with six in a critical condition.

Officials say a suspect is in custody – and at this stage, it is believed the attack was a “random act” that involved a folding-style knife near the checkout area.

Sheriff Michael Shea told reporters: “Eleven is 11 too many, but thank God it wasn’t more.”

Pic: AP
Image:
Pic: AP

The suspect, who is from Michigan, is not known to police – and was captured within three minutes thanks to “citizen involvement”.

The attack unfolded in Traverse City – and Tiffany DeFell, who was in the car park at the time, described scenes of chaos.

“It was really scary. Me and my sister were just freaking out,” she said. “This is something you see out of the movies.”

Beyond the six people in a critical condition, it is believed the remaining five were seriously hurt. All 11 are still being treated in hospital.

More from US

Pic: AP
Image:
Pic: AP

Michigan Governor Gretchen Whitmer said: “Our thoughts are with the victims and the community reeling from this brutal act of violence.”

A Walmart spokesperson added that the retailer is working closely with law enforcement.

“Violence like this is unacceptable. Our thoughts are with those who were injured and we’re thankful for the swift action of first responders,” a statement said.

Pic: AP
Image:
Pic: AP

At this stage, the ages of the victims is unclear – but it is not thought any of the victims were Walmart employees.

Traverse City is about 255 miles northwest of Detroit.

Continue Reading

US

Plane plunges 300ft in 36 seconds to avoid another aircraft

Published

on

By

Plane plunges 300ft in 36 seconds to avoid another aircraft

A US passenger plane made a dramatic plunge minutes after take-off to dodge another aircraft – injuring two cabin crew and causing passengers to shoot out of their seats.

The Southwest flight had just taken off from Burbank in California when the pilot received an alert about a nearby plane.

Data from FlightAware shows the aircraft dropped by 91m (300ft) in just 36 seconds. Those on board said they felt panicked, and some feared the plane was about to crash.

Comedian Jimmy Dore posted on X: “Pilot had to dive aggressively to avoid mid-air collision … myself and plenty of people flew out of their seats and bumped heads on ceiling, a flight attendant needed medical attention.”

Stef Zambrano saw a woman who wasn’t wearing her seatbelt thrown out of her seat, who then said: “I want to get off this plane. I want to be on the ground.”

Another passenger, Steve Ulasewicz, told NBC Los Angeles that it felt like the plane was in freefall for 10 seconds.

“People were screaming. You know, it was pandemonium. People thought the plane was going down,” he added.

More from US

The aircraft was able to continue to its destination of Las Vegas, where it safely landed without any further incident.

It is believed the Boeing 737 was in the same vicinity as a Hawker Hunter Mk. 58, a British fighter jet.

Southwest is now working with the Federal Aviation Administration “to further understand the circumstances” of the event.

Read more US news:
Trump issues warning as he arrives in Scotland
US justice department interviews Ghislaine Maxwell

Please use Chrome browser for a more accessible video player

January: Footage of Washington plane crash

This is the second time in a week that a passenger plane has had to make abrupt flight manoeuvres to avoid a potential mid-air collision.

Concerns have been raised about aviation safety in the US following a series of recent incidents.

In January, a mid-air collision in Washington DC killed 67 people.

Continue Reading

US

Snipers, Secret Service sweeps and a personal chef on standby: Scotland awaits Trump’s arrival

Published

on

By

Snipers, Secret Service sweeps and a personal chef on standby: Scotland awaits Trump's arrival

Donald Trump likes a wall. And now he has his very own 10ft-high metal barrier creating a fortress as he tees off for a weekend of politics, play and precision in Scotland.

An almost surreal contrast now exists in the tiny Ayrshire village of Turnberry.

On one side, the stunning coastline and luxury hotel that bears the president’s name. And on the other, an armed buffer zone with sniper teams and road checkpoints.

This visit is unlike those that have gone before.

The threat level and associated security on display is unprecedented following the attempted assassination of Trump at a campaign rally in the US.

“It would be inappropriate for me to plan an operation and not bear in mind what has happened,” the senior officer in charge of this weekend’s policing efforts told me.

Green military-type truck
Image:
Military trucks are part of a security effort that comes just a year after an attempted assassination

Fence
Black security van
Image:
A ‘counter terror’ firm was spotted near the area, which is ringed by a 10ft fence

Turnberry, and its population of about 200 people, have this week witnessed a never-ending stream of Army trucks, terrorist sweeps, road checkpoints, airspace restrictions, sniper positions being erected and Secret Service agents roaming around.

More on Donald Trump

It is the most extensive security deployment in Scotland since the death of the late Queen in 2022.

It is estimated around 5,000 officers will be on the streets, with teams coming from across the UK to assist.

The spectacle primarily centres on Donald Trump coming to play golf before the arrival of Prime Minister Sir Keir Starmer for talks, likely on Monday.

The president, whose mother was born on the Scottish island of Lewis, is then scheduled to travel to his Aberdeenshire resort where a new golf course is set to open.

Police on buggies patrol as golfers play, near the Trump Turnberry golf course
Image:
Police on buggies are patrolling near the course on Scotland’s east coast

Police lorry
Police security tape is placed across a clothes recycling bin near the Trump Turnberry golf course.
Image:
Police have even taped off a clothes recycling bin near the course

‘Trump is a decent boss’

Stephanie Campbell and Leanne Maxwell live in Turnberry and used to work at the Trump-owned resort, like many other locals.

The pair told Sky News the very first lesson staff at the resort are given is not in fine service or guest etiquette, but in how to respond to a bomb threat.

It is claimed there are posters above the landline phones in the hotel with instructions on the worst-case scenario.

Stephanie Campbell and Leanne Maxwell work at the Trump course
Image:
Stephanie Campbell and Leanne Maxwell say staff are trained in dealing with bomb threats

Stephanie told Sky News: “I had no issues working for him, he is a really decent boss.

“The last time he came there was an element of excitement, I think this time there comes with an added element of concern.

“It brings a lot higher threats and security and it’s much more difficult for everybody in the area.”

Donald Trump waves to protesters while playing golf at Turnberry golf club, in  2018
Image:
Mr Trump at Turnberry in 2018 – he will also visit his Aberdeen course on this trip. Pic: AP

A flag flutters on the Ailsa Championship Course at the Trump Turnberry Golf Resort in Turnberry.
Image:
File pic: Reuters

Echoing her concerns, Leanne told Sky News: “Security is obviously being bumped up. It’s quite worrying. He’s quite a man, ain’t he?”

Sweeps of the rooms are carried out by US Secret Service agents after housekeeping staff complete their duties and Trump’s meals, they say, are prepared by a personal chef to avoid the risk of poisoning.

To the outside world, these measures seem standard for a US president. But to those who live in Turnberry, it’s far from normal when they have a date with the commander-in-chief.

Marine One helicopter
Image:
Marine One is in place awaiting the president’s arrival

A view of the hotel at the Trump Turnberry Golf Resort. File pic: Reuters
Image:
File pic: Reuters

Awkward encounters

Prestwick Airport has become something of an American airbase in recent days.

The infamous armoured limousine, known as “The Beast”, has been spotted being wheeled out of a US military plane as the presidential motorcade prepares for his arrival tonight.

Greeting the president at the doors of Air Force One will be the secretary of state for Scotland, Ian Murray, who previously supported a motion alleging Trump was guilty of “misogynism, racism and xenophobia”.

Another awkward encounter could come in the form of Scottish First Minister John Swinney’s showdown with Mr Trump next week.

Read more from Sky News:
Trump told in May his name in Epstein files – report
Trump says US will ‘win’ AI race as plan unveiled

The SNP leader, who publicly backed Kamala Harris in the presidential race, called for September’s state visit to be scrapped after the Ukrainian president’s visit to the White House descended into a shouting match live on TV earlier this year.

Demonstrations are planned throughout the weekend, with marches and protests announced in Glasgow, Edinburgh and Aberdeen.

Kirsty Haigh, from Scotland Against Trump, claims the president uses Scotland to “cleanse his image” and he should not be able to use the country as an “escape” from his views.

She told Sky News: “He should not be welcomed by us, by our leaders.

“We want to see a Scotland that is very different than [the] America that’s being created.”

Continue Reading

Trending