Major International Business Headlines Brief::: 04 February 2025

Tue Feb 4 12:01:46 CAT 2025

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Major International Business Headlines Brief:::  04 February 2025 

 <mailto:info at bulls.co.zw> 

ü  Trump tariffs could raise medication costs and exacerbate shortages, drug
trade groups warn

ü  New tariffs could raise home prices and sideline potential buyers

ü  Honda’s new EV production revolution begins with $1 billion investment in
Ohio

ü  Shein ramps up charm offensive as London IPO nears

ü  Trump’s 25% tariffs on Mexico and Canada to challenge the global auto
industry

ü  Pending home sales drop sharply in December as mortgage rates surge back
over 7%

ü  FDA approves Vertex’s non-opioid painkiller, first new kind of pain
medicine in decades

ü  Comcast stock falls 11% after company underwhelms in broadband, Peacock
subscribers

ü  Trump sows uncertainty - and Xi Jinping sees an opportunity

ü  US sovereign wealth fund could buy TikTok, Trump says

ü  US and Mexico reach deal to put tariffs on hold - for now

ü  Tax relief for Indian middle class - but will it boost economy?

ü  UK not choosing between US and EU, says Starmer

ü  Chinese fashion giant Shein re-enters India five years after ban

ü  Thames Water seeks court approval for emergency cash

 <mailto:info at bulls.co.zw> 

Trump tariffs could raise medication costs and exacerbate shortages, drug
trade groups warn

President Donald Trump’s steep tariffs on Canada, Mexico and China could
worsen existing drug shortages in the U.S., raise health-care costs for
patients and threaten cash-strapped generic drugmakers, some drug trade
groups warn.

Trump on Saturday announced he would impose a 25% tariff on nearly all goods
shipped from Canada and Mexico and a 10% charge on imports from China, all
of which were set to take effect on Tuesday. On Monday, both Mexico and
Canada said the tariffs would be paused for about a month.

Still, the proposed import taxes come as the U.S. grapples with an
unprecedented shortfall of crucial medicine ranging from injectable cancer
therapies to generics, or cheaper versions of brand-name medicines, which
has forced hospitals and patients to ration drugs. It also comes as many
Americans struggle to afford the high costs of prescription medications. 

The U.S. relies heavily on other countries for pharmaceutical products,
especially for generic drugs. Those medications make up 90% of Americans’
prescriptions, so tariffs could potentially threaten many patients’ access
to affordable treatments. 

China in particular is a large supplier of active pharmaceutical
ingredients, or APIs, for both brand-name and generic drugs due to lower
manufacturing costs in the country. APIs are the main component of a drug
that causes the desired effect of the treatment. Some generic drugs are
manufactured overseas entirely.  

The tariffs could “increase already problematic drug shortages” by forcing
generic manufacturers out of the market due to low profit margins, according
to a statement from John Murphy, CEO of the Association for Accessible
Medicines, which represents generic pharmaceutical companies. 

“Generic manufacturers simply can’t absorb new costs,” Murphy said Sunday.
“Our manufacturers sell at an extremely low price, sometimes at a loss, and
are increasingly forced to exit markets where they are underwater.” 

He urged the Trump administration to exempt generic products from tariffs,
adding that the overall value of all generic sales in the U.S. has decreased
by $6.4 billion in five years despite “growth in volume” and new generic
drug launches. 

The Healthcare Distribution Alliance, which represents 40 drug distributors,
has also called for the Trump administration to reconsider including
pharmaceutical products in tariffs. In a statement Sunday, the group said
tariffs would strain the pharmaceutical supply chain and “could adversely
affect American patients,” whether that is through increased medical product
costs or manufacturers leaving the market. 

The group said the tariffs will put additional pressure on an industry
already in financial distress, noting that distributors operate on low
profit margins of just 0.3%.

The U.S. will likely see “new and worsened shortages of important
medications,” and those costs will be “passed down to payers and patients,
including those in the Medicare and Medicaid programs,” the Healthcare
Distribution Alliance said. 

An estimate from The Budget Lab at Yale University said long-term prices of
pharmaceutical products in the U.S. will be 1.1% higher after shifts in the
supply chain. 

Pharmaceutical Research and Manufacturers of America, which represents
pharmaceutical companies, said in a statement that it shares Trump’s goal of
ensuring the U.S. maintains its “global leadership in biopharmaceutical
innovation and manufacturing.”

Trade measures should focus on “addressing unfair practices abroad and
safeguarding our intellectual property,” the group added.

Medical devices

The U.S. also relies on overseas manufacturing for medical devices, with
many key components and finished products being sourced from countries such
as China, Mexico and India.

For example, Intuitive Surgical

, which manufactures robotic surgical systems, disclosed in its annual
report last week that a “significant majority” of the company’s instruments
and accessories are manufactured in Mexicali, Mexico. 

Tariffs on the country would “increase the costs of our products
manufactured in Mexico and adversely impact our gross profit,” the company
said. 

AdvaMed, the largest medical device association globally, urged the Trump
administration to exempt medical products from the tariffs. In a statement,
the group said import taxes could lead to shortages of critical medical
technologies, higher prices for patients and payers, and less investment in
research and development. 

The tariffs and associated costs essentially function as “an excise tax in
practice,” AdvaMed said, noting that Trump provided a carve-out for much of
the medical technology sector when he imposed tariffs on China during his
first term. 

Tariffs could also impact hospitals, which rely on imports for everyday
supplies, such as gowns, gloves and syringes, along with bigger items such
as X-ray equipment. 

But the American Medical Manufacturers Association, which advocates for U.S.
businesses that produce medical personal protective equipment, or PPE,
supports the tariffs on China and increasing domestic production of those
products. 

In a statement Monday, the group said the tariffs recognize that China has
“not changed its ways and continues to engage in anti-competitive and
hazardous behavior that harms U.S. PPE and medical supply manufacturers and
threatens our supply chains and national security.”-cnbc

New tariffs could raise home prices and sideline potential buyers

Tariffs on key building materials sourced from Canada and Mexico could make
homes more expensive and freeze out buyers.

President Donald Trump put 25% tariffs on goods from the two key trading
partners, but later delayed duties on Mexico by a month.

Home prices are already at record highs, and Trump’s mass deportation plans
could further pressure the market by reducing the construction labor force.

The U.S. housing market was already struggling under the weight of high
mortgage interest rates, a low supply of existing homes for sale and
historically high home prices.

Now tariffs on building materials are adding even more pressure.

About 30% of softwood lumber consumed in the U.S. is imported, largely from
Canada. Wallboard, known as gypsum, is imported from Mexico. The 25% tariff
President Donald Trump levied on goods from the two key trading partners
will make those products that much more expensive. The Mexico tariffs were
postponed Monday for a month, but they are still on the table.

“More than 70% of the imports of two essential materials that home builders
rely on — softwood lumber and gypsum — come from Canada and Mexico,
respectively,” Carl Harris, chairman of the National Association of Home
Builders, wrote in a release. “Tariffs on lumber and other building
materials increase the cost of construction and discourage new development,
and consumers end up paying for the tariffs in the form of higher home
prices.”

Home prices are already up well over 40% since the start of the pandemic and
were still 3.8% higher in November, compared with the previous November,
according to the latest read from the S&P Corelogic Case-Shiller national
home price index. That annual increase was higher than the 3.6% in October.

Duties on building materials could make the market even harder for buyers.

“We believe this could make worse the affordability crisis for first-time
buyers,” wrote Jaret Seiberg, housing policy analyst for TD Cowen Washington
Research Group. “On the plus side, it could increase pressure on Congress to
enact policies that encourage more entry-level construction including
expanded tax credit programs.”

The NAHB is asking the Trump administration to exempt building materials
from the 25% tariffs, noting his executive order on the first day of his
presidency that sought to “expand housing supply.”  

While the U.S. has ramped up lumber production in recent years, 70% of the
country’s sawmill and wood product imports — $8.5 billion — come from
Canada. They are already subject to a 14.5% tariff, so Trump’s new policy
would raise it to over 39%.

And 71% of lime and gypsum product imports are from Mexico, totaling $352
million. Other materials, such as steel and appliances, are sourced from
China. Trump put an additional 10% tariff on goods from China on Saturday.

New duties on imports from China, Canada and Mexico could raise construction
material costs by $3 billion to $4 billion if they all take effect,
affecting builders’ ability to complete projects, according to the NAHB.

The tariffs are likely to hit smaller homebuilders with tighter margins
harder, but big builders are not immune.

“Even with a smaller portion of our lumber coming from Canada, and some
materials from Mexico, we will all be affected — which, in turn, can impact
consumers and their ability to purchase a home in the short-term,” said
Sheryl Palmer, CEO of Arizona-based homebuilder Taylor Morrison. “In a time
where some consumers are still struggling to overcome higher interest rates,
my sincere hope is that these will be short-lived.”

Builders are already contending with a labor shortage that is only getting
worse after the Trump administration started mass deportations of
undocumented immigrants. Roughly 30% of construction workers are estimated
to be immigrants, and a significant share of those workers are undocumented,
according to the National Immigration Forum, an immigration advocacy group.

“You can run them all out of the country, but who’s going to build houses?”
said Bruce McNeilage, CEO of Nashville-based Kinloch Partners, a
single-family rental home developer.

While the bulk of the effect of tariffs is on new housing construction, the
existing market could also feel the effects. If the costs of other consumer
goods increase, all potential buyers will have less spare cash to save for a
down payment.

There was also an expectation that interest rates would fall this year, but
if inflation heats up again due to the tariffs, rates could even rise. This
layering of both economic realities and emotional perceptions of personal
wealth could hit the all-important, upcoming spring market hard.-cnbc

Honda’s new EV production revolution begins with $1 billion investment in
Ohio

Honda is in the midst of completing more than $1 billion in new investments
— upped Wednesday from an initially announced $700 million — in the state
this year. Upgrades most notably include installing six “giga presses,”
which were made well-known by Tesla

, and a new “cell” manufacturing system for its upcoming electric vehicle
battery cases.

The company’s emerging EV hub in Ohio, including a separate $3.5 billion
battery plant, will be the flagship for Honda’s global manufacturing
operations. That includes its Marysville Auto Plant being capable of
producing traditional vehicles, hybrids and EVs on the same assembly line,
officials said during a daylong tour of the operations.

“The Honda EV hub in Ohio is establishing the global standard for EV
production for people, for technology and for processes,” said Mike Fischer,
North American lead for Honda’s battery-electric vehicle projects. “As we
expand EV production regionally and globally, this is the footprint and the
characteristic performance that will be used.”

Typically such important manufacturing changes would begin in Honda’s home
country of Japan and then get rolled out to facilities in the U.S. and
elsewhere, according to company officials.

The Ohio investments were initially announced in October 2022 as part of the
Biden administration’s push to on-shore manufacturing. They remain important
amid threats of potential increases in tariffs for imported products such as
automobiles by President Donald Trump.

Honda produced more than 1 million vehicles at five U.S. assembly plants in
2024. About 64% percent were sold in the U.S., while the remainder were
exported. It has one assembly plant in Mexico.

Once completed, Honda will be able to produce roughly 220,000 vehicles
annually at its Marysville plant, located in central Ohio outside of
Columbus. The 4 million-square-foot facility currently produces several
Honda and Acura vehicles, which are expected to be joined later this year by
an all-electric Acura RSX crossover — the first EV produced by Honda.

The Japanese automaker was late to invest in EVs compared with other
automakers. It currently sells two all-electric crossovers — Honda Prologue
and Acura ZDX — in the U.S., but those vehicles are produced by General
Motors

in Mexico.

The new Acura crossover will be followed by the Honda 0 SUV and Honda 0
Saloon EV prototypes the company debuted last month at CES in Las Vegas.

The aluminum battery packs for the new EVs will be produced at Honda’s
nearby engine complex in Anna, Ohio — the company’s largest engine facility
globally that has grown from a small rectangle building in 1985 to a more
than 2.8-million-square feet plant.

“We’re establishing this large aluminum production technology for all
Honda,” Tim Stroh, EV battery case project leader, said. “The goal here is
to roll that out to other products, other factors across the world.”

A row of Honda's new  6,000-ton high-pressure die cast machines that will
"megacast," or "gigacast," as Tesla has referred to it, battery packs for
the automaker at its engine and components plant in Anna, Ohio.

A row of Honda’s new  6,000-ton high-pressure die cast machines that will
“megacast,” or “gigacast,” as Tesla has referred to it, battery packs for
the automaker at its engine and components plant in Anna, Ohio.

To produce the battery packs and other EV components, as well as potentially
engines in the future, the company is installing six massive, 6,000-ton
high-pressure die cast machines that will “megacast,” or “gigacast”
materials, as Tesla has referred to it. The massive machines are the size of
a small house and use an enormous amount of pressure to form parts. Current
Honda presses go up to 3,500 tons in Ohio.

Done correctly, gigacasting can theoretically slash per-unit manufacturing
costs by eliminating the welding of dozens of body parts by casting one
single module, according to S&P Global Mobility.

Once the packs are cast, they will be shipped from Anna to Marysville and
other plants to have battery cells from Honda’s joint venture operations
with LG Energy Solution installed before being used in the final assembly of
EVs.

A Honda employee at the automaker's large vehicle manufacturing plant in
Marysville, Ohio demonstrates how battery pack assembly will work in its new
"cell," or zone, production system on Jan. 28, 2025

To combine the battery cells and packs in Marysville, Honda is installing
nearly 60 flexible manufacturing “cells,” or zones, for the battery
assembly. Instead of a traditional assembly line, where parts are installed
as a vehicle moves, the new production process occurs parallel to the main
line in zones that make it so any potential slowdowns or problems don’t
impact the main line.

“This is considered the second founding for Honda,” said Bob Schwyn, senior
vice president of Honda Development and Manufacturing of America. “We’re
using the opportunity to reimagine our approach to manufacturing.”

Honda has referred to its transition to electric vehicles, including fuel
cells, as its “second founding.” Despite slower-than-expected adoption of
EVs in the U.S., the company maintains previously announced goal of
achieving zero environmental impact by 2050, through three critical action
areas: carbon neutrality, clean energy and resource circulation.

That goals also includes exclusively selling zero-emissions vehicles by
2040. Many other automakers have delayed or withdrawn such targets in recent
years.

The more than $1 billion investments in current Ohio facilities also include
several new manufacturing processes and techniques to lower emissions and
waste, including using a special form of structural aluminum for the EV
battery packs that can be recycled and reused.

“We’re using the opportunity to reimagine our approach to manufacturing and
create new value in the area of environmental responsibility,” Schwyn said.
“This includes strategies to recapture our products at end-of-life and then
recycle or reuse 100% of the materials, especially finite materials for EV
batteries to essentially make new Hondas out of old Hondas.”-cnbc

Shein ramps up charm offensive as London IPO nears

Shein is ramping up its charm offensive again as the fast-fashion giant eyes
a public listing in London as soon as this year. 

The retailer issued a press release on Friday detailing the steps it’s
taking to keep the items it sells safe. The announcement came about a week
after its first product safety recall in the U.S. since 2021. 

Shein said it conducted more than 2 million product safety tests last year
using industry-leading labs such as Bureau Veritas and Intertek, adding that
its vendors are required to submit documentation for items like toys, baby
products, medical devices and electronics. 

Shein made the announcement, which included details on its sustainability
initiatives and a new nonprofit foundation it set up, as the company looks
to win over lawmakers in the U.K. and ease concerns that it’s selling unsafe
products that are made with forced labor. 

Last week, Shein recalled more than 300 hair dryer brushes because they
posed an electrocution or shock hazard to consumers. The Teckwe Hair Dryer
Brush appeared to be a so-called dupe of a similar product sold by Dyson. No
injuries were reported and Shein is offering a refund to impacted customers.

A spokesperson for Shein told CNBC the company conducted safety tests on
products it sells itself and did “risk-based, randomized testing” on items
sold by third-party vendors on its marketplace before their listing.

Product safety testing is common for items that a retailer sells, even if
they’re online only, because they could be held liable for defects under
consumer protection laws in the U.S. On the other hand, a retailer’s
liability is less clear for third-party sellers on an online marketplace,
which makes product testing prior to an item’s listing unusual.

Shein’s decision to conduct product safety tests on items sold by
third-party sellers makes it stand out in an industry that has been rife
with safety concerns. Typically, online marketplaces just require sellers to
conduct their own testing and provide documentation to support it.

Shein added in its press release that it terminated more than 260 sellers on
its marketplace over the last year for not meeting compliance requirements. 

Shein faces U.K. scrutiny

Shein’s campaign to show it takes product safety and sustainability
seriously comes as it prepares to go public in the U.K. — and follows a
similar charm offensive in the U.S. before its doomed initial public
offering bid there.

Earlier this month, U.K. lawmakers criticized attorneys for Shein when they
appeared before a British parliamentary hearing and evaded questions about
the company’s supply chain and whether it sells products made with cotton
from China, The Associated Press reported. 

Shein’s general counsel in Europe, Yinan Zhu, repeatedly declined to say
whether the company’s products contain cotton from Xinjiang and whether the
company prohibits suppliers from sourcing raw materials in the region, which
has become notorious for its Uyghur detention camps. 

When asked whether the company believes there is forced labor in Xinjiang,
Zhu said it wasn’t the company’s place to have a “geopolitical debate” and
repeated a line Shein often uses when grilled on its supply chain, “We
comply with the laws and regulations in the countries that we operate in.”

Committee Chairman Liam Byrne said Zhu’s refusal to answer questions left
lawmakers “horrified” and gave them “zero confidence” in the integrity of
Shein’s supply chain.  

“The reluctance to answer basic questions has frankly bordered on contempt,”
Byrne said.

Throughout 2023, when Shein was still hoping for a U.S. IPO, it commonly
spoke publicly about its cotton supply chain and the tests it had conducted
to ensure it wasn’t sourcing from banned regions. It even told CNBC it had
stopped sourcing cotton from China altogether. 

Shein did not make similar statements in the parliamentary hearing.-cnbc

Trump’s 25% tariffs on Mexico and Canada to challenge the global auto
industry

If Trump implements the duties, automakers such as General Motors — the
country’s top-selling automaker — may have to adjust their business
strategies.

On a percentage of sales basis, German automaker Volkswagen is the most
exposed to tariff risk, followed by Nissan Motor and Stellantis, S&P
Mobility reports.

A car carrier trailer waits in line next to the border wall before crossing
to the United States at Otay commercial port in Tijuana, Baja California
state, Mexico, on January 22, 2025. (Photo by Guillermo Arias / AFP) (Photo
by GUILLERMO ARIAS/AFP via Getty Images)

A car carrier trailer waits in line next to the border wall before crossing
to the United States at Otay commercial port in Tijuana, Baja California
state, Mexico, on Jan. 22, 2025.

Guillermo Arias | AFP | Getty Images

DETROIT — Tariffs announced Saturday by the Trump administration of 25% on
goods from Canada and Mexico as well as an additional 10% on products from
China are expected to have a profound impact on the global automotive
industry.

For months, automakers have been taking a “wait-and-see” approach to the
Trump administration’s tariff threat. That waiting period is coming to an
end and automakers will likely need to implement prior contingency plans to
attempt to offset additional costs in the coming weeks and months.

Depending on the details, the tariffs on Mexico could have the greatest
impact on the automotive industry, followed by Canada and then China,
depending on the automaker.

“Any tariff action must be followed with a renegotiation of the [United
States-Mexico-Canada Agreement], and a full review of the corporate trade
regime that has devastated the American and global working class,” Shawn
Fain, president of the United Auto Workers Union, said in a statement.

Inside the planning for Trump’s new tariffs war, from the biggest company to
the smallest family business General Motors and other major automakers did
not immediately respond for comment regarding the tariffs Saturday night.
Others such as Ford declined to comment, while Honda issued a broad
statement: “North American auto trade is key to the success of Honda
globally and we look forward to a swift resolution that provides clarity and
stability throughout the region.”

Most major automakers have factories in the U.S. However, they still rely
heavily on imports from other countries including Mexico to meet American
consumer demand.

Nearly every major automaker operating in the U.S. has at least one plant in
Mexico, including the six top-selling automakers, which accounted for more
than 70% of U.S. sales in 2024.

A tariff is a tax on imports, or foreign goods, brought into the United
States. The companies importing the goods pay the tariffs, and some fear the
companies would simply pass any additional costs on to consumers — raising
the cost of vehicles and potentially reducing demand.

The formal announcement provides some clarity for companies but could cost
automakers, many of which have produced vehicles without tariffs in Canada
and Mexico for decades, billions of dollars.

Uncertainty about trade took a toll on GM on Tuesday, when the automaker’s
stock had one of its worst days in years even after it beat Wall Street’s
expectations for its 2025 guidance and its top- and bottom-line for the
fourth quarter. 

“Our key take from GM’s 4Q [earnings] result is that while the opportunity
for GM is highly compelling, US policy uncertainty must be navigated for the
time being,” Barclays analyst Dan Levy said in an investor note
Wednesday.-cnbc

Pending home sales drop sharply in December as mortgage rates surge back
over 7%

Signed contracts on existing homes dropped a sharp 5.5% in December from the
previous month and fell 5% from the prior year, according to the National
Association of Realtors.

The drop followed four straight months of gains and the index was at its
lowest level since August.

These so-called pending sales are an indicator of future closings and are
the most current indicator of activity in the market. Buyers out shopping in
December were facing a big jump in mortgage interest rates, which may have
dampened demand.

The average rate on the 30-year fixed mortgage went from a low of 6.68% on
Dec. 6 to a high of 7.14% on Dec. 19. Realtors had been saying that buyers
were getting used to a “new normal” of higher interest rates, but the 7%
mark appears to be an emotional barrier for buyers.

Sales of newly built homes, which are also based on signed contracts, saw
gains in December, according to the U.S. Census, but homebuilders have been
aggressively buying down mortgage rates to get customers in the door.

Pending sales fell in all regions, with the West and Northeast seeing the
biggest monthly drops at decreases of 8.1% and 10.3%, respectively. Those
regions are where home prices are highest.

“Contract activity fell more sharply in the high-priced regions of the
Northeast and West, where elevated mortgage rates have appreciably cut
affordability,” said Lawrence Yun, chief economist for the National
Association of Realtors. “Job gains tend to have greater impact in more
affordable regions. It is unclear if heavier-than-usual winter precipitation
impacted the timing of purchases.”

Prices are still stubbornly high and rising across the nation. Annual gains
accelerated in late fall and early winter, according to the latest read from
the S&P Case-Shiller national home price index.

Homebuying demand does not appear to be bouncing back at all in January.
Mortgage applications to purchase a home last week were 7% lower than they
were the same week one year ago, according to the Mortgage Bankers
Association.

Homes are also selling at the slowest rate in five years, according to a new
report from Redfin. As of the four weeks ending Jan. 26, the typical home
listing that went under contract sat on the market for 54 days before the
seller accepted an offer, the longest span since March 2020 and a week
longer than this time last year.

The weakness comes as the supply of homes for sale is finally rising
significantly. The number of newly listed homes jumped just over 37% in
January compared with December, according to Realtor.com.

“The shift in seller activity could mark a turning point in the high
mortgage rate-induced standoff between buyers and sellers,” said Danielle
Hale, chief economist at Realtor.com. “The uptick is likely due to some
residual benefit from fall’s lower mortgage rates, which could fade.”-cnbc

FDA approves Vertex’s non-opioid painkiller, first new kind of pain medicine
in decades

The Food and Drug Administration approved Vertex Pharmaceuticals’ non-opioid
painkiller pill, a new alternative for pain relief that comes without the
risk of addiction. 

It’s a milestone after a long history of unsuccessful efforts to develop
painkillers without the destructive dependency of opioids, which have caused
a horrific epidemic in the U.S.

Vertex’s drug is specifically approved for the treatment of moderate to
severe acute pain, which is usually caused by injury, surgery, illness,
trauma or painful medical procedures and is likely to ease with time.

The Food and Drug Administration on Thursday approved Vertex
Pharmaceuticals’ non-opioid painkiller pill, a new alternative for pain
relief that comes without the risk of addiction. 

Vertex is now the first drugmaker in decades to gain U.S. approval for a new
type of pain medicine. It’s a milestone after a long history of mostly
unsuccessful efforts to develop painkillers without the destructive
dependency of cheap and widely available opioids, which have caused a
horrific epidemic of abuse and overdose in the U.S.

Vertex’s drug, Journavx, is specifically approved for the treatment of
moderate to severe acute pain, which is usually caused by injury, surgery,
illness, trauma or painful medical procedures and likely eases with time.
Around 80 million patients are prescribed a medicine for their moderate to
severe acute pain every year in the U.S., according to Vertex. 

Almost 10% of patients with acute pain who are treated initially with an
opioid will go on to have prolonged opioid use, and roughly 85,000 people
will develop opioid use disorder annually, Vertex said in a statement.

“We have the opportunity to change the paradigm of acute pain management and
establish a new standard of care,” Dr. Reshma Kewalramani, Vertex CEO, said
in a statement.

Vertex said Journavx will have a list price of $15.50 per 50-milligram pill.
Wall Street analysts have said that the medication could become a
blockbuster drug if it wins approval from regulators, estimating its annual
sales could exceed $1 billion. 

The experience of pain starts in a nerve ending, and the body detects the
pressure and sends a signal to the spinal cord and then the brain. Vertex’s
treatment works by blocking pain signals at their origin before they reach
the brain. That’s different from opioids, which act directly on the brain to
block pain, triggering the brain’s rewards centers in a way that can feed
addiction.

The approval underscores the “FDA’s commitment to approving safe and
effective alternatives to opioids for pain management,” said Dr. Jacqueline
Corrigan-Curay, acting director of the FDA’s Center for Drug Evaluation and
Research, in a release.

Vertex’s painkiller was more effective than a placebo at reducing the
intensity of pain after 48 hours in two late-stage studies on more than
1,000 patients who had abdominoplasties, also known as “tummy tucks,” and
roughly another thousand in people who had bunion surgery. Those two
procedures are commonly used in studies of people with acute pain.

The painkiller, however, failed to meet the secondary goal in both trials of
reducing pain when compared with a combination of the opioid drug
hydrocodone, which is frequently abused, and acetaminophen, the basis for
popular pain medications such as Tylenol.

In both trials, rates of adverse side effects were lower in those who
received Vertex’s drug compared with people who took a placebo. The most
commonly reported adverse events among people who received Journavx were
itching, muscle spasms and rash, among others, according to the FDA.

In a separate phase three study, more than 83% of patients said in a survey
that the drug was good, very good or excellent at easing pain. Those people
had undergone various surgical or nonsurgical procedures.

The bigger opportunity for Vertex may be to win FDA approval in chronic
pain. That’s an area where the risk of addiction to prescription opioids can
be greater, according to the Centers for Disease Control and Prevention. 

In 2023, the company’s painkiller produced positive results in a mid-stage
trial in diabetes patients suffering from a chronic nerve condition.-cnbc

Comcast stock falls 11% after company underwhelms in broadband, Peacock
subscribers

Comcast topped Wall Street’s fourth-quarter estimates despite reporting
larger-than-expected broadband subscriber losses and stagnating paid
subscribers for its streaming service, Peacock.

Comcast reported Thursday that it lost 139,000 residential broadband
customers during the fourth quarter, more than the 100,000 losses that
Comcast Cable CEO Dave Watson had telegraphed.

Peacock had 36 million subscribers during the most recent quarter, up year
over year but flat from the prior period.

Comcast topped Wall Street’s fourth-quarter estimates Thursday despite
reporting larger-than-expected broadband subscriber losses and stagnating
paid subscribers for its streaming service, Peacock.

Wall Street has been particularly focused on cable companies’ broadband
businesses, which still garner high revenue and earnings but have been in
the midst of a customer growth slump due to heightened competition from
wireless companies, among other factors.

At the same time, streaming has been top of mind for the Street. Although
profitability is now considered the key measure of success, investors have
taken note of recent subscriber additions by major players since the
introduction of cheaper, ad-supported tiers.

Comcast reported Thursday that it lost 139,000 residential broadband
customers during the fourth quarter, more than the 100,000 losses that
Comcast Cable CEO Dave Watson had telegraphed in December during an investor
conference.

Comcast President Mike Cavanagh on Thursday’s investor call said the
broadband losses were “disappointing and worse than what we indicated in
early December.”

The company also reported Thursday that Peacock had 36 million subscribers
during the most recent quarter, up year over year but flat from the prior
period. Wall Street had been looking for total paid subscribers of 37.56
million, according to estimates from StreetAccount.

Comcast shares fell 11% Thursday.

Here is how the company performed for the quarter, compared with average
analyst estimates from LSEG: 

For the quarter ended Dec. 31, net income attributable to Comcast rose
roughly 47% to $4.78 billion, or $1.24 per share, compared with $3.26
billion, or 81 cents per share, a year earlier. 

Adjusting for one-time items, including interest expense and the value of
certain assets, Comcast reported earnings per share of 96 cents for the
period. 

Adjusted earnings before interest, taxes, depreciation and amortization was
up about 10% to $8.81 billion. 

In addition to higher broadband revenue, Comcast’s overall revenue was up 2%
to $31.92 billion, thanks to an increase in segments including its mobile
business, the film studio and revenue growth at streaming service Peacock.
During the fourth quarter of 2023, Comcast reported revenue of $31.25
billion. 

Despite the slowdown in cable industry broadband customer growth, the
business is a key driver on balance sheets like Comcast’s as average revenue
per user has risen. 

Broadband is part of Comcast’s Connectivity and Platforms segment, which
also includes Xfinity Mobile wireless, which was launched in 2017. The
company surpassed 7.8 million mobile lines, and revenue from the unit helped
propel overall residential connectivity revenue. 

Comcast executives Thursday said the company would shift focus to the mobile
business in a push to add more lines and further bundle it with broadband.
Watson said Thursday the company will “put the pedal down” on the mobile
effort in the second quarter.

Comcast lost 311,000 cable TV customers during the fourth quarter. 

Meanwhile, revenue for the company’s Content and Experiences business, which
includes NBCUniversal’s TV networks and streaming, the film studio and theme
parks, was up 5% to roughly $12.08 billion during the fourth quarter. 

Revenue for the media segment, which includes the TV networks, was up 3.5%
to about $7.22 billion, namely due to higher revenue for Peacock due to an
uptick in paid subscribers on the platform from the prior year. Overall
domestic advertising for the media segment was flat as ad dollars for
Peacock increased but the TV networks saw a smaller haul. 

The media segment reported $298 million in adjusted EBITDA, falling short of
Wall Street expectations of $317.1 million for the quarter, according to
StreetAccount estimates. The rest of the businesses in the content and
experiences segment beat StreetAccount estimates, including overall adjusted
EBITDA.

In November, Comcast announced it would spin off its cable network channels,
a portfolio that includes CNBC, MSNBC, E!, Syfy, USA, Oxygen and the Golf
Channel. The separation, which will also include digital assets such as
Fandango and Rotten Tomatoes, is expected to take about a year. The NBC
broadcast network, cable channel Bravo and Peacock will remain with Comcast.

Peacock has been moving toward profitability in recent quarters. On
Thursday, Comcast reported Peacock had $1.3 billion in fourth-quarter
revenue and an adjusted EBITDA loss of $372 million, compared with $1
billion in revenue and an adjusted EBITDA loss of $825 million in the same
period last year. 

Peacock’s subscriber growth often rises on the back of major live sporting
events on the platform. The Summer Olympics in Paris was a key driver in the
third quarter, when the platform added 3 million subscribers. Exclusive NFL
games have helped pad the streamer’s numbers, and the company has touted the
addition of the NBA and WNBA next season.

Universal Studios’ revenue was up 6.7% to $3.27 billion, and the segment’s
adjusted EBITDA was up 85% to $569 million, boosted by the box office
successes of films including “Kung Fu Panda 4,” “Despicable Me 4,” “The Wild
Robot” and “Wicked.” 

Meanwhile, Theme Parks revenue was flat as lower attendance persisted at
domestic locations. 

Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.
NBCUniversal owns NBC Sports and NBC Olympics. NBC Olympics is the U.S.
broadcast rights holder to all Summer and Winter Games through 2032.-cnbc

Trump sows uncertainty - and Xi Jinping sees an opportunity

If China was angry at the United States for imposing an extra 10% tariff on
all Chinese goods, it did a good job of hiding it.

It urged Washington to start talks after repeated warnings that there would
be no winners in a trade war.

It held its fire until midnight in Washington - and then just as the tariffs
on China kicked in, Beijing announced retaliatory tariffs of 10-15%,
starting 10 February, on various US imports, including coal, crude oil and
large cars.

The Chinese government may have remained calm in the hope of doing a deal
with Washington to avoid further tariffs - and to keep the relationship
between the world's two largest economies from spiralling out of control.

After all, US President Donald Trump agreed to reprieves with Canada and
Mexico just hours before the tariffs on them took effect. Trump and China's
President Xi Jinping are expected to talk this week.

The US levy will sting - especially because it adds to a slew of tariffs
Trump imposed in his first term on tens of billions of dollars of Chinese
imports. And China's population is already concerned about their sluggish
economy.

Beijing and Washington have gone toe-to-toe on tariffs before. But a lot has
changed since Trump 1.0.

For one, the Chinese economy is not as reliant on the US as it was back in
2020. Beijing has strengthened its trade agreements across Africa, South
America and South East Asia. It is now the largest trading partner of more
than 120 countries.

A deal could still be in the offing but the additional 10% may not offer the
leverage that Trump wants, says Chong Ja Ian from Carnegie China.

Follow live: China announces retaliatory action as Trump tariffs take effect

Xi's 'win-win' as America retreats

President Xi Jinping may also see a bigger opportunity here.

Trump is sowing division in his own backyard, threatening to hit even the
European Union (EU) with tariffs - all in his first month in office. His
actions may have other US allies wondering what is in store for them.

In contrast, China will want to appear a calm, stable and perhaps more
attractive global trade partner.

"Trump's America-first policy will bring challenges and threats to almost
all countries in the world," says Yun Sun, director of the China programme
at the Stimson Centre.

"From the perspective of US-China strategic competition, a deterioration of
US leadership and credibility will benefit China. it is unlikely to turn
well for China on the bilateral level, but Beijing surely will try to make
lemonade..."

Xiqing Wang/ BBC A port terminal in Cambodia shows pink and yellow
containersXiqing Wang/ BBC

Cambodia has become a major importer of Chinese raw materials - and a
destination for Chinese businesses seeking to skirt US tariffs

As a leader of the world's second-largest economy, Xi has made no secret of
his ambition for China to lead an alternative world order.

Since the end of the Covid pandemic, he has travelled extensively, and he
has supported major international institutions such as the World Bank and
agreements such as the Paris climate accords.

Chinese state media have portrayed this as embracing countries across the
world and deepening diplomatic ties.

Before that, when Trump halted US funding to the WHO in 2020, China pledged
additional funds. Expectations are high that Beijing may step in to fill
America's shoes again, following Washington's exit from the WHO.

The same applies for the aid freeze that is causing such chaos in countries
and organisations that have long depended on US funding - China may wish to
fill the gap, despite an economic downturn.

Trump's tariffs hit China hard before - this time, it's ready

Turmoil as Trump and Musk take aim at top US aid agency

On his first day back in office, Trump froze all foreign assistance provided
by the US, which is by far the world's biggest aid donor. Hundreds of
foreign aid programmes delivered by USAID ground to a halt. Some have since
restarted, but aid contractors describe ongoing chaos as the future of the
agency hangs in the balance.

Trump's "America First" doctrine could further weaken Washington's position
as a global leader, says John Delury, a historian of modern China and
Professor at Yonsei University in Seoul.

"The combination of tariffs on major trade partners and freezing of foreign
assistance sends a message to the Global South and OECD alike that the US is
not interested in international partnership, collaboration," he tells the
BBC.

"President Xi's consistent message of 'win-win' globalisation takes on a
whole new meaning as America retreats from the world."

In its bid for global governance, Beijing has been looking for a chance to
upend the the American-led world order of the last 50 years - and the
uncertainty of Trump's presidency may well be it.

New alliances

"Whether it really confers Beijing a key advantage - of that I'm a little
less sure," Mr Chong says.

"Many US allies and partners, especially in the Pacific, have a reason to
work with Beijing, but they also have reasons to be wary. That's why we've
seen Japan, South Korea, the Philippines and Australia move closer together,
in part because of the apprehensions they harbour towards China."

There is "gathering momentum" for a possible trilateral relationship among
Australia, Japan and South Korea, motivated by "the impact of a second Trump
administration", according to The Australian Institute of International
Affairs.

National Task Force for the West Philippine Sea A navy blue Chinese ship
firing a water cannon towards a larger white and red Philippine vessel. They
sit in the sea, no land is visible. Two other vessels can be seen in the
distanceNational Task Force for the West Philippine Sea

Tensions in the South China Sea mean some of China's neighbours are already
wary

All three are concerned about China's assertiveness in the South China Sea,
along with the Philippines. They are also worried about a possible war over
the self-governed island of Taiwan - Beijing sees it as a breakaway province
that will, eventually, be part of the country, and has not ruled out the use
of force to achieve this.

Taiwan has long been one of the most contentious issues in US-China
relations, with Beijing condemning any perceived support from Washington for
Taipei.

But it may be difficult for Washington to hit back at signs of Chinese
aggression when Trump repeatedly threatens to annex Canada or buy Greenland.

Most countries in the region have used a military alliance with Washington
to balance their economic relationship with China.

But now, wary of Beijing and unsure of the US, they could create new Asian
alliances, with neither of the world's biggest powers.

Calm before the storm

Trump announced the US tariffs on the weekend, as Chinese families were
celebrating the New Year and inviting the God of Fortune into their homes.

Bright red lanterns currently swing over empty Beijing streets as most
workers have left for their hometowns during the biggest holiday of the
year.

At first, China's only response had been that it would take legal action and
use the World Trade Organisation to air its grievances.

But this poses little threat to Washington. The WTO's dispute settlement
system has been effectively shut down since 2019 when Donald Trump - in his
first term then - blocked the appointment of judges to handle appeals.

Then China announced retaliatory tariffs. As the holiday draws to a close
and party officials return to Beijing and to work, they have decisions to
make.

Officials had been encouraged in recent weeks by signs that the Trump
administration may want to keep the relationship stable especially after the
two leaders had what Trump called "a great phone call" last month.

But that is going to get harder, as both Republicans and Democrats
increasingly view China as America's biggest foreign policy and economic
threat.

"Mr Trump's unpredictability, his impulsiveness and recklessness will
inevitably lead to significant shocks in the bilateral relationship," says
Wu Xinbo, professor and director at the Centre for American Studies at Fudan
University.

"Additionally, his team contains quite a few hawks, even extreme hawks on
China. It is unavoidable that the bilateral relationship will face serious
disruption over the next four years."

China is certainly concerned about its relationship with the US and the harm
a trade war could do to its slowing economy.

But it will also be looking for ways to use the current political pendulum
to swing the international community its way and within its sphere of
influence.-bbc

US sovereign wealth fund could buy TikTok, Trump says

US President Donald Trump has taken the first step towards setting up a
sovereign wealth fund for the United States, and suggested that it could end
up buying TikTok.

The president signed an executive order on Monday, to kickstart the process,
saying the fund would soon be "one of the biggest".

More than 90 countries have sovereign wealth funds, investing surplus income
for the benefit of future generations. However, the US currently runs a
budget deficit.

"We're going to create a lot of wealth for the fund," Trump told reporters,
without clarifying where the money would come from.

When Trump first floated the idea of a sovereign wealth fund during his
election campaign, he suggested it could be funded by "tariffs and other
intelligent things".

He has already announced plans to impose tariffs on imports from America's
three biggest trading partners - China, Mexico and Canada.

But on Tuesday the levies on Mexico and Canada were paused for 30 days.

US Treasury Secretary Scott Bessent said the fund would be set up within the
next 12 months and that the plan was to monetise assets currently owned by
the US government "for the American people".

Saudi Arabia and Norway have two of the world's largest sovereign wealth
funds, supported by the proceeds of fossil fuel sales. They invest in
companies and projects around the world.

President Trump has previously said that a US sovereign wealth fund would
finance "great national endeavours" including infrastructure projects such
as airports, roads as well as medical research.

After signing the executive order for the fund's creation, he also floated
the idea that it could buy up the social media platform TikTok.

The Chinese-owned social media company was briefly taken offline in the US
last month, over national security concerns, after the previous
administration ordered its owner to sell its US operations or face a ban.

Trump has delayed the ban, promising to find a solution, after TikTok's US
users protested at its shutdown.

"We're going to be doing something, perhaps with TikTok, and perhaps not,"
Trump said. "If we make the right deal, we'll do it. Otherwise, we won't...
we might put that in the sovereign wealth fund."

However, the president has also recently said that technology giant
Microsoft was in discussions to acquire TikTok and that he would like to see
a "bidding war" over the sale of the social media app.

Other big names in tech, including Larry Ellison and Elon Musk, have also
been floated as possible buyers.-bbc

US and Mexico reach deal to put tariffs on hold - for now

US President Donald Trump has delayed introducing 25% tariffs on imports
from Mexico for a month while the two countries hold "negotiations".

Trump said he would "immediately pause the anticipated tariffs", which were
due to come into force on Tuesday.

The last-minute breakthrough came after a phone call between Trump and
President Claudia Sheinbaum, in which the Mexican leader agreed to send
10,000 members of the National Guard to the US-Mexican border to "prevent
the trafficking of drugs, in particular fentanyl, from Mexico to the US".

President Sheinbaum said the US had in turn agreed to increase measures to
prevent the trafficking of high-powered US weapons into Mexico.

Follow developments on our live page

Sheinbaum broke the news on X, writing she had had a "good conversation with
great respect for our relationship and sovereignty" with her US counterpart,
which she said had led to the tariffs being put on hold for a month.

The White House had said earlier that President Trump's "bold action" was to
hold Mexico - as well as China and Canada, whom he has also threatened with
tariffs - "accountable to their promises of halting illegal immigration and
stopping poisonous fentanyl and other drugs from flowing into our country".

As well as reinforcing Mexico's northern border, and a commitment by the US
that it would "work towards" curbing the flow of weapons to Mexico,
Sheinbaum wrote the two countries would start work "today" to reach a deal
on "security and trade".

Trump confirmed the pause shortly afterwards, describing his telephone
conversation with Sheinbaum as "very friendly".

The tone is markedly different from the one in recent days when Trump
accused the Mexican government of having an "intolerable alliance" with drug
trafficking gangs.

While Sheinbaum had angrily denounced the allegation as "slander", she also
insisted "problems are not solved by imposing tariffs, but by talking".

That strategy seems to have yielded some results and while the threat of US
tariffs has not gone away completely, the Mexican leader has gained some
breathing space and for now avoided a trade war between the two countries.

The "Plan B" of retaliatory measures the Mexican leader had instructed her
economy minister to prepare should US tariffs come into force has been
shelved for now, she said.

Sheinbaum appeared both relieved and upbeat during Monday's morning news
conference, where her words of "well, you will have seen my tweet" were met
with applause by the assembled media.

She also laughed as she told reporters that when President Trump had asked
her how long they should pause the tariffs for, she had answered "forever".

While the US president did not agree to take the threat of tariffs off the
table for good, Sheinbaum said she was confident "during this month we'll be
able to deliver good results for his people and the people of Mexico".

During her news conference, she stressed the two countries' shared aims,
which she said were to crack down on drug trafficking from Mexico to the US
and to protect their mutual border.

She also welcomed what she said had been a commitment by the US to do more
to stem the trafficking of high-powered weapons from the US to Mexico.

"Rocket launchers come here from the US," she told reporters, insisting it
was in the interest of both nations to stop providing drug cartels with
firepower.

She insisted it was in Mexico's interest to combat the trafficking of
fentanyl, a synthetic drug 50 times stronger than heroin that is linked to
tens of thousands of overdoses in the US.

Sheinbaum pointed out the deployment of 10,000 members of the National Guard
to the US border would "help Mexico" increase its security.

Border security and stemming the flow of undocumented migrants was one of
the key issues in President Trump's campaign and since coming to office he
has argued voters "gave him a mandate to seal the border".-bbc

Tax relief for Indian middle class - but will it boost economy?

Indian Prime Minister Narendra Modi's coalition government has unveiled its
first full-year budget after his party lost an outright majority in
parliament last year.

Finance minister Nirmala Sitharaman announced measures to counter slowing
growth, rising prices and flagging consumption among the middle class in
Asia's third-largest economy.

After a period of world-beating growth of more than 8%, India is set for its
slowest economic expansion in four years as stagnant wages and high food
prices hit consumer spending and corporate profits.

Here are five key takeaways from India's union budget:

Tax cuts for the middle class

In a major relief to millions of taxpayers, the government has raised income
tax exemption limits, making earnings of up to 1.2m rupees ($13,841;
£11,165) - excluding special rate income like capital gains - entirely tax
free.

The finance minister has also announced tweaks to other income tax slabs
which is likely to leave more money in the hands of the middle class.

The income tax concessions to the middle class "seems aimed at addressing
the slump in urban consumption", said Nomura's India Economist Aurodeep
Nandi.

The impact, however, could be limited since a tiny fraction of Indians pay
direct taxes. In 2023, 1.6% of Indians (22.4 million people) actually paid
income taxes, according to data presented in parliament.

The market cheered the announcements with stocks of automobiles, consumer
goods and online grocery companies rallying.

Getty Images Indian construction workers work on a high-rise building.
India's prime minister, Narendra Modi, presents the Union Budget 2025-26 in
parliament in Hyderabad, India, on January 30, 2025.Getty Images

The government will continue spending on state-led infrastructure projects

State-led infrastructure spending remains on track

State-funded capital expenditure on major road, port and railway projects
has been a key driver of India's growth engine since 2020.

Despite an unexpected contraction in actual spending in the first nine
months of this year, the government has modestly increased its
infrastructure expenditure target for this year from 11.1 trillion to 11.2
trillion rupees ($129.18bn; £104.21bn).

The government has also proposed offering interest-free loans to states to
enable them to spend more on infrastructure development.

Boost for nuclear energy, insurance

The budget has set a goal to generate 100GW of nuclear energy by 2047. As
part of this plan, a Nuclear Energy Mission has been launched with a budget
of 200bn rupees ($2.3bn, £1.86bn). The plan is to deploy five indigenous
reactors by 2033 and amend laws, like the Civil Liability for Nuclear Damage
Act, to realise goals and get more private sector participation in the
sector.

Meanwhile, foreign direct investment limits for the insurance sector have
been increased from 74% to 100%.

"This will aid foreign insurers' interest in investing in the growing Indian
insurance market, where we expect strong premium growth to boost
profitability," said Mohammed Ali Londe, Senior analyst at Moody's Ratings.

Small-scale industries and regulatory reform in focus

In order to ease the climate for doing business, which has been a major
concern among investors, a high-level committee has been announced to
undertake regulatory reforms in the non-financial sectors and reduce the
compliance burden on corporations. The panel will make recommendations
within a year.

Small and micro industries, that account for 35% of India's manufacturing
and create millions of jobs, also got a boost through fiscal support of 1.5
trillion rupees ($17.31bn; £13.96bn) over the next five years.

The government has also raised production-linked subsidies and slashed
import duties for local manufacturing units across sectors like textiles,
mobile telephones and electronics. This could promote private investments,
which have not picked up post the Covid-19 pandemic.

Even with slightly higher budget outlays for infrastructure creation, India
has had to continue a delicate balancing act between pushing economic growth
and keeping its spending in check.

The budget has reiterated a commitment to reducing the government's deficit,
which is the gap between what it earns and spends, to 4.4% by 2026 from 4.8%
this year.

Global rating agencies closely watch these numbers, with lower debt figures
leading to potentially better investment ratings in the future and a
reduction in borrowing costs for the country.

India's recent slowdown has made the growth versus fiscal prudence trade-off
increasingly challenging.

A recent economic survey by the finance ministry expects GDP growth to slow
to between 6.3-6.8% in the financial year ending March 2026, in line with
the Reserve Bank of India's forecasts.

With the budget out of the picture, the focus will now shift to the central
bank's monetary policy meeting later this month.

The RBI has maintained policy rates at 6.5% since February 2023, but is
likely to begin easing the cost of borrowing as both growth and inflation
have begun to come down.

Last week, the central bank announced plans to inject $18bn into the
domestic banking system to ease a cash shortage, a move seen by many as a
precursor to rate cuts.-bbc

UK not choosing between US and EU, says Starmer

The UK is "not choosing between the US and the EU", Prime Minister Sir Keir
Starmer has said after President Donald Trump threatened the European Union
with trade tariffs.

Over the weekend, Trump announced 25% tariffs on Canada and Mexico - which
have both since been paused - and said he would take similar action against
the EU but suggested a deal could be "worked out" with the UK.

Asked if he would be willing to water down attempts to forge closer ties
with the EU in exchange for keeping the US on side, Sir Keir said both
relationships were important to the UK.

"Now, that for me isn't new, I think that's always been the case and will be
the case for many, many years to come," he added.

The prime minister told a press conference in Brussels it was "early days"
when it came to tariff talks with the US and that he backed "open and strong
trading relations".

Sir Keir was in Belgium to meet Nato Secretary General Mark Rutte and attend
talks with EU leaders - the first PM to do so since Brexit.

Asked about tensions between the US and the EU, Rutte said there were
"always issues between allies" but that would "not get in the way of our
collective determination to keep our deterrent strong".

On Ukraine, he said Nato - the military alliance of Western countries - had
to "not only sustain but continue to step up our support" to ensure Ukraine
could negotiate with Russia from "a position of strength".

He added that spending 2% of national income on defence was "not enough to
keep us safe" and that there was "no time to waste" in boosting funding.

Currently Nato asks every member country to spend a least 2% of GDP on
defence, however it is thought only 23 of the 32 members meet the target.

Sir Keir said the UK currently spends 2.3% and that his government would
shortly be setting out "the path" towards reaching 2.5%.

Speaking at a European Council dinner, the prime minister called for more
military collaboration between the UK and Europe including by improving
military mobility and logistics across Europe, focusing on research and
development and deepening industrial collaboration.

He also said there should be more co-operation to protect against state
threats and sabotage, including on subsea infrastructure. This comes after
the UK issued a warning to Russia last month after a spy ship was spotted
near undersea cables.

While defence is the focus of his Brussels trip, for Sir Keir it is also
part of an ongoing bid to "reset" UK-EU relations.

The UK government wants to forge stronger links with the EU - but that could
anger the US and risk the UK getting caught up in a trade war.

Similarly, the EU might object to Sir Keir siding with the US rather than
its European neighbours.

Earlier, No 10 said the prime minister trusted Trump and pointed to "a
really constructive early set of conversations" between the two men.

"We've got a fair and balanced trading relationship which benefits both
sides of the Atlantic," the spokesman added.

"It's worth around £300bn and we are each other's single largest investors,
with £1.2tn invested in each other's economies."

Reform UK leader Nigel Farage the prime minister's commitment to industrial
collaboration with the EU showed he was "a rejoiner at heart".

The UK should be negotiating a free trade deal with the US instead, he told
BBC Radio 4's Today programme on Tuesday, claiming the EU was "diminishing
every year".

"If we start to tie ourselves to industrial collaboration, as it appears was
agreed last night, then we find ourselves with less flexibility in doing
deals with countries like America.

"My fear is we tie ourselves to EU law."

Following Trump's tariffs announcements over the weekend, European and Asian
stock markets fell, with car manufacturers particularly badly hit.

The UK was also impacted but to a lesser extent than the EU.

Analysis produced last year by the University of Sussex suggested the UK
could face a £22bn hit to exports if the US imposed a blanket 20% tariff on
all imports.

Trump believes imposing tariffs will help grow the US economy and protect
jobs, however it could lead to consumers paying more as prices adjust to the
taxes.

On Monday, Mexican President Claudia Sheinbaum said the imposition of the
25% tariffs had been delayed after reaching an agreement with the US which
would see her country deploy 10,000 troops to tackle drug trafficking into
the US.

Prime Minister Justin Trudeau also confirmed that Trump's proposed tariffs
of 25% on Canadian goods would be "paused for at least 30 days while we work
together".

European Commission President Ursula von der Leyen said the EU wanted a
constructive dialogue with the US but was ready to respond firmly if it was
"unfairly" targeted by the new Trump administration.

French President Emmanuel Macron said that if EU interests were attacked,
the trading bloc would have to "make itself respected and thus react".

EU foreign policy chief Kaja Kallas said there were "no winners in trade
wars", but if there was a trade war with the US "then the one laughing on
the side is China".

Asked earlier if he would put tariffs on the UK, Tump said: "UK is out of
line but I'm sure that one... I think that one can be worked out."

He added his discussions with the British prime minister had "been very
nice" adding: "We've had a couple of meetings. We've had numerous phone
calls. We're getting along very well."

As well as defence the UK wants to discuss easing restrictions on the trade
of food and animal products and co-operation on emission trading schemes
with the EU.

The mutual recognition of professional qualifications and allowing touring
musicians to travel more easily are also areas of interest.

The EU is keen to set up a youth mobility scheme, which would make it easier
for young EU citizens to study and work in the UK and vice versa. However,
ministers have so far rejected the idea.

Downing Street has not ruled out joining the Pan-Euro-Mediterranean
Convention, which would allow tariff-free trade on some goods.

The Conservatives have accused the government of "trying to reopen the
divisions of the past and edge us back into the EU".

In contrast, Liberal Democrat leader Sir Ed Davey has been urging the
government to negotiate a new UK-EU customs union, allowing tariff-free
trade between the two sides.

Following the tariff announcements, Sir Ed said the US president was "acting
like a playground bully" and the UK should "work with our allies in the
Commonwealth and Europe to stand strong against Trump".-bbc

Chinese fashion giant Shein re-enters India five years after ban

Chinese fast fashion app Shein has relaunched in India five years after it
was banned by Delhi, under a deal with Indian firm Reliance Retail.

An official from Reliance Retail, who did not wish to be named, told the BBC
the firm has entered a long-term licensing deal with the parent company to
sell products manufactured and sourced in India on the platform. The group
has not yet made an official announcement.

Shein's re-entry to the Indian market comes with strict terms, which include
saving all data within the country, India's Commerce Minister Piyush Goyal
said in December.

In 2020 India banned Shein and dozens of other Chinese apps including
TikTok.

It said this was in response to data security concerns and it followed a
spike in tensions with China after clashes between the two countries' armies
in a disputed Himalayan border area.

The app was launched in India on Friday night and has so far been downloaded
by more than 10,000 people. It is offering fashionwear for as little as 199
rupees ($2.30; £1.90).

Shein is currently delivering to consumers only in the cities of Delhi,
Mumbai and Bengaluru, but will soon offer services across India, according
to a notification on the app.

Over the last decade, Shein has gone from a little-known brand among older
shoppers to one of the biggest fast fashion retailers globally. Today, it
ships to customers in 150 countries across the world.

Before the ban it became a big hit in India as it gave people a variety of
options to buy trendy designs at an affordable price. The ban initially left
a vacuum in the Indian market which was later filled by many local players.

Experts say that with Shein India, Reliance Retail - owned by Indian
billionaire Mukesh Ambani - is diversifying from its existing strategy of
selling international brands through its flagship Ajio online retailer.

The revival comes with strict conditions that give Reliance Retail full
control over its operations and data while Shein will be a technological
partner, Goyal told the Indian parliament in December.

All customer and application data will be stored in India and Shein will not
have any access rights, he said.

Goyal also clarified that the app was banned in India, not the "sale of
Shein-branded products".

Shein will use India as a "supply source for its global operations" and will
help Reliance Retail in "building the network" and training Indian garment
manufacturers, as it aims to promote export of textile and garments from
India, an official from Reliance Retail said.

The rise and rise of fashion giant Shein

The truth behind your $12 dress: Inside the Chinese factories fuelling
Shein's success

Shein's comeback under the deal with Reliance Retail is a rare exception to
India's ban on more than 200 Chinese apps over the last five years.

At the time, Indian officials said the ban followed many complaints against
the apps for "stealing and surreptitiously transmitting users' data in an
unauthorised manner".

ByteDance's TikTok and popular combat and survival game PlayerUnknown's
Battleground (PUBG) were also banned.

However PubG was later rebranded and launched for the Indian market under
the name Battlegrounds Mobile India (BGMI), which is held by Krafton
India.-bbc

Thames Water seeks court approval for emergency cash

Thames Water will seek approval for an emergency cash lifeline in court on
Monday as it faces running out of money in four weeks' time.

Lenders to the debt-saddled company are offering up to £3bn in additional
short-term loans to buy time to complete a major restructuring of the UK's
biggest water and waste company.

Failure to secure approval will see Thames edge closer to a temporary
nationalisation, which could cost the government some £2bn a year.

The company is still considering whether to appeal against a decision by the
water industry regulator Ofwat to increase bills by 35% above inflation over
the next five years – short of the 53% increase it applied for.

Thames Water has been struggling for some time and has been heavily
criticised over its performance following a series of sewage discharges and
leaks.

The dire state of the company's finances emerged about 18 months ago when it
began a search for funding to avoid collapse.

The Thames fiasco is a combination of poor historical regulation, greedy
shareholders, climate change and management failure. Its debt pile is
currently about £17bn.

But regardless of what happens to the company in the future, water supplies
to households will continue as normal.

In the latest bid to survive, lenders have offered Thames a further loan of
up to £3bn in two instalments.

The first payment is to get it through to the autumn, and a second is to be
used if the company decides to appeal against Ofwat's 35% bill rise to the
Competition and Markets Authority (CMA) - a process that could take up to a
year.

The company has until 18 February to launch an appeal to the CMA.

Why is Thames Water in so much trouble?

The water industry is in crisis. Can it be fixed?

Investment bank Rothschild is also soliciting bids to take over the company
and inject much-needed funds.

The court hearing on Monday is scheduled for four days with a possible
extension as a much smaller group of lenders is challenging the terms of the
lifeline and proposing an alternative.

Although Thames will not collapse immediately if the deal is not approved by
the judge, insiders have acknowledged that the company will move a step
closer to temporary nationalisation – a so-called Special Administration
Regime – if it fails.

The government has already sounded out a number of consultancies to take
that on if the situation arises.

The company has been keen to stress that whatever happens, its services to
16 million customers would continue uninterrupted, but big questions about
the future of Thames and other key infrastructure providers have been thrown
up.

Some argue that Thames should be allowed to go bust and have the government
take over the company due to it being the architect of its own misfortune.
Previous owners loaded the company with debt, took out big dividends and
paid executives handsomely. Caving in to its demands for customers to pay
more now for a failing service would be a gross injustice.

Others say that poor regulation has allowed this mess. Bills were kept too
low for too long which hampered investment in the aging infrastructure that
is now being overwhelmed by a wetter climate. Ofwat is fighting yesterday's
battle and making things worse by imposing fines of tens of millions of
pounds for failures, thus further depriving the company of the funds to fix
the very things it is being fined for.

What Thames and ministers both agree on is that neither want this sprawling
company on the government's books. Consultancy Teneo has predicted a
temporary nationalisation would cost up to £2bn a year.

However, a wider, perhaps more important argument made by some is that the
failure of Thames as a private company would send an unhelpful message to
the international investors that Chancellor Rachel Reeves hopes will invest
hundreds of billions in UK airports, wind farms, rail links and everything
else on her long shopping list of growth-boosting projects.

Sources close to the company and its creditors argue that we cannot agonise
over and regulate for past mistakes. We are where we are - between a rock
and a hard place. Carve out a special deal for Thames - or risk its
collapse.

Thames has just over two weeks to appeal to the CMA to bump up the bills
it's allowed to charge. It's not without risk - the CMA could revise them
down.

Last week, the chair of the CMA was forced out by ministers unimpressed by
the regulator's focus on growth. Thames says it needs higher bills to invest
£20bn over the next five years. It will be an interesting test case for the
new chair.-bbc

 Invest Wisely!

Bulls n Bears 

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