Economy

OTTAWA (Reuters) -U.S. President-elect Donald Trump said on Saturday he discussed the border, trade and energy in a “very productive” meeting with Canadian Prime Minister Justin Trudeau amid fears of a trade war.Trudeau paid an unannounced visit to Florida on Friday evening and had dinner with Trump at his Mar-a-Lago residence, days after Republican Trump pledged to impose 25% tariffs on Canadian and Mexican imports after he is sworn in as president in January.That pledge has raised fears of a trade war between the U.S. and two of its biggest trading partners.Mexico President Claudia Sheinbaum warned this week that Trump’s tariff plan would have dire consequences for both countries and suggested possible retaliation.Trump wants to use tariffs as a tool to get Mexico and Canada to help stem the flow of illegal drugs into the U.S., particularly the deadly opioid fentanyl, and also migrants crossing illegally into the U.S.”We discussed many important topics that will require both Countries to work together to address, like the Fentanyl and Drug Crisis that has decimated so many lives as a result of Illegal Immigration, Fair Trade Deals that do not jeopardize American Workers, and the massive Trade Deficit the U.S. has with Canada,” Trump said in a post on Truth Social.”Trudeau has made a commitment to work with us to end this terrible devastation of U.S. Families,” he added.Trudeau, in a post on social media X on Saturday, said he looked forward to the two working together.”Thanks for dinner last night, President Trump. I look forward to the work we can do together, again,” Trudeau said.The prime minister’s office did not respond to a request for comment about the meeting. A Canadian government official, speaking on the condition of anonymity, told Reuters that it was a positive, wide-ranging dinner that lasted three hours.On Friday, Trudeau said at a news conference in Canada he was taking the possible tariffs seriously.”Donald Trump, when he makes statements like that, he plans on carrying them out,” he said.Many economists have warned Trump’s plan to impose tariffs on imports will increase costs for U.S. consumers.Trump has said tariffs on trading partners will help protect U.S. manufacturers and boost domestic job growth.In a separate post, Trump called on the so-called BRICS countries to commit to not creating a new currency or supporting another currency over the U.S. dollar.If those countries do so they will face “100% tariffs”, Trump said.BRICS refers to original members of the intergovernmental group of economies: Brazil, Russia, India, China and South Africa.It also includes Iran, Egypt, Ethiopia, and the United Arab Emirates.”We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy,” Trump wrote. More

Standard DigitalStandard & FT Weekend Printwasnow $29 per 3 monthsThe new FT Digital Edition: today’s FT, cover to cover on any device. This subscription does not include access to ft.com or the FT App.What’s included Global news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts20 monthly gift articles to shareLex: FT’s flagship investment column15+ Premium newsletters by leading expertsFT Digital Edition: our digitised print editionWeekday Print EditionFT WeekendFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisGlobal news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts10 monthly gift articles to shareGlobal news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts20 monthly gift articles to shareLex: FT’s flagship investment column15+ Premium newsletters by leading expertsFT Digital Edition: our digitised print editionEverything in PrintWeekday Print EditionFT WeekendFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisPlusEverything in Premium DigitalEverything in Standard DigitalGlobal news & analysisExpert opinionSpecial featuresFirstFT newsletterVideos & PodcastsFT App on Android & iOSFT Edit app10 gift articles per monthExclusive FT analysisPremium newslettersFT Digital Edition10 additional gift articles per monthMake and share highlightsFT WorkspaceMarkets data widgetSubscription ManagerWorkflow integrationsOccasional readers go freeVolume discountFT Weekend Print deliveryPlusEverything in Standard DigitalFT Weekend Print deliveryPlusEverything in Premium Digital More

Standard DigitalStandard & FT Weekend Printwasnow $29 per 3 monthsThe new FT Digital Edition: today’s FT, cover to cover on any device. This subscription does not include access to ft.com or the FT App.What’s included Global news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts20 monthly gift articles to shareLex: FT’s flagship investment column15+ Premium newsletters by leading expertsFT Digital Edition: our digitised print editionWeekday Print EditionFT WeekendFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisGlobal news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts10 monthly gift articles to shareGlobal news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts20 monthly gift articles to shareLex: FT’s flagship investment column15+ Premium newsletters by leading expertsFT Digital Edition: our digitised print editionEverything in PrintWeekday Print EditionFT WeekendFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisPlusEverything in Premium DigitalEverything in Standard DigitalGlobal news & analysisExpert opinionSpecial featuresFirstFT newsletterVideos & PodcastsFT App on Android & iOSFT Edit app10 gift articles per monthExclusive FT analysisPremium newslettersFT Digital Edition10 additional gift articles per monthMake and share highlightsFT WorkspaceMarkets data widgetSubscription ManagerWorkflow integrationsOccasional readers go freeVolume discountFT Weekend Print deliveryPlusEverything in Standard DigitalFT Weekend Print deliveryPlusEverything in Premium Digital More

“We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy,” Trump wrote on his social media platform, Truth Social. “They can go find another ‘sucker’. There is no chance that the BRICS will replace the U.S. Dollar in International Trade, and any Country that tries should wave goodbye to America.” More

BUENOS AIRES (Reuters) – Argentines living with HIV/AIDS and medics say spending cuts under libertarian President Javier Milei are hurting treatment of the illness and could lead to more cases, with fewer condoms for prevention and fewer tests to catch the virus early.The right-wing leader is pushing a major austerity drive, touting his “chainsaw” to cut back the size of the state and overturn a deep fiscal deficit he inherited. That has seen budgets frozen or capped for many public sector services.The budget for free HIV/AIDS treatment, where Argentina is a regional pioneer, fell 67% in real terms in 2024 and is set to fall 46% in 2025. That has put strain on supply of key medicines and could leave thousands without care next year, experts said.Acquired immunodeficiency syndrome (AIDS) is a chronic condition caused by the human immunodeficiency virus (HIV). Most people with HIV can live near-normal lives and not suffer from AIDS-related illness with effective early treatment.”I’ve been taking expired medication since May. Now in October they gave me medication until February, which expired in November,” Claudio Mariani, 59, who was initially diagnosed as HIV positive in 1993, told Reuters.”In my case, for example, I’m doing the viral load test now but I don’t know when I’ll have the results,” he added.According to official government data there are around 140,000 people living with HIV in Argentina. Around half that number depend on public sector treatment, according to the Health Ministry’s latest Epidemiological Bulletin. The government did not respond to requests for comment.The Huésped Foundation, which works to ensure access to care for HIV/AIDS sufferers, said more than 9,000 people would see treatment interrupted in 2025 due to the spending cuts.The government’s draft budget would see spending on the free HIV treatment service “Program 22″ rise from 21 billion to 23 billion pesos ($23 million), which with inflation at likely over 100% means a significant real-terms spending cut.This could see patients not being diagnosed or being caught late, ironically pushing up hospital costs, experts said.”These people require hospitalization, treatment for infections and a range of medical care that could be avoided if diagnosis is made earlier,” explained Leandro Cahn, executive director of the Huésped Foundation.”All these cuts, far from saving money… generate more costs,” he said.Ministry of Health data show that already this year the number of condoms distributed by the government fell to 209,328 from 503,460 the previous year, with expected drops in the supply of reagents and rapid tests likely to hinder care.”Treatment is something permanent,” local HIV specialist Luis Trombetta told Reuters, explaining that this consistency kept down the mortality rate. “It cannot be replaced or interrupted.”($1 = 1,010.0000 Argentine pesos) More

FRANKFURT (Reuters) – The current weakness in German industry is sapping demand in Switzerland’s manufacturing sector, Swiss National Bank Chairman Martin Schlegel said on Saturday.”When Germany has a cold, Switzerland gets the flu,” he said, noting that there was significantly less demand among Swiss manufacturers owing to the downturn in Germany, Switzerland’s top overall trade partner.Schlegel was speaking at an event in Frankfurt organized by Germany’s Bundesbank less than two weeks before the Swiss central bank is due to make its next interest rate decision.So far in 2024, the SNB has reduced its benchmark rate three times to 1% now, with expectations of more cuts to come.Markets currently give a 72% probability for a 25 basis point cut, and a 28% likelihood for a 50 basis point cut at the SNB’s next monetary policy meeting on Dec. 12.The rate cuts have followed slowing inflation, which has been within the SNB’s 0-2% target range for nearly 18 months.In October, Swiss annual inflation eased to 0.6%, its lowest level in more than three years. More

DUBLIN (Reuters) – Ireland’s two large centre-right parties looked on course to be returned to power after an election on Friday, but they will likely need at least one junior partner to reach a majority, raising questions about the stability of the next government. The parties may face prolonged negotiations or an unstable coalition ahead of the inauguration of U.S. President-elect Donald Trump, whose pledge to slash corporate tax and impose tariffs poses a major threat to the Irish economy.Outgoing government parties Fine Gael and Fianna Fail were on 21% and 19.5% respectively in an exit poll, a touch behind left-wing Sinn Fein on 21.1%With the two centre-right parties ruling out a deal with Sinn Fein, the main question was how close to the 88 seats needed for a majority the pair can secure – and whether they would need one or two more coalition parties to get over the line.”If they are both at 20%, that’ll get them close to 80 seats, I suspect, and then it’s a matter of who will go in with them,” said Dublin City University politics professor Gary Murphy. To have a stable government, they will be hoping that small centre-left parties and potentially willing partners Labour or the Social Democrats get 11 or 12 seats, Murphy said. A coalition with four parties could be far more fragile. The current junior coalition party, the Greens, secured the support of just 4%, down from 7% at the last election. That could see their seat numbers fall from 12 to three, said senior party member Ciaran Cuffe. The formal counting of votes began at 0900 GMT and is expected to last until Sunday at the earliest in many constituencies under Ireland’s proportional representation system known as the single transferable vote. That system is likely to give the larger parties a higher proportion of seats than their percentage of votes, but an approximate tally of seats might not emerge until Sunday. GIVEAWAY BUDGETPrime minister Simon Harris called the election on the heels of a 10.5 billion euro ($11 billion) giveaway budget that began to put money into voters’ pockets during the campaign, largesse made possible by billions of euros of foreign multinational corporate tax revenues.However, a campaign full of missteps for his Fine Gael party, culminating last weekend in a viral clip of Harris walking away from an exasperated care worker, cost them their pre-election lead.The government parties also faced widespread frustration during the campaign at their inability to turn the healthiest public finances in Europe into better public services.Sinn Fein, the former political wing of the Irish Republican Army, appeared on course to lead the next government a year ago but suffered a slide in support from 30-35%, in part due to anger among its working class base at relatively liberal immigration policies. Fine Gael and Fianna Fail, former rivals that have between them led every government since the foundation of the state almost a century ago, agreed to share the role of prime minister during the last government, switching roles half way through the five-year term. A similar arrangement appears likely this time. More

PARIS (Reuters) -French Finance Minister Antoine Armand said on Saturday that the 2025 budget could still be improved, but stopped short of giving ground in a standoff with the far right over new concessions.France’s budget deficit has spiralled out of control this year, pressuring French government bonds, although ratings agency Standard & Poor’s gave Prime Minister Michel Barnier’s fragile minority government a rare reprieve late on Friday by leaving its rating steady.Any relief is likely to prove short-lived with both the left and far right threatening to bring Barnier’s government down over the budget, which seeks to squeeze 60 billion euros ($64 billion) in savings through tax hikes and spending cuts.Marine Le Pen’s far right National Rally (RN), whose tacit support Barnier needs to survive a likely no confidence motion, has given him until Monday to accede to her demands to make further changes to the budget.”This government, under his authority, is willing to listen, to have a dialog, to be respectful, to improve this budget,” Armand told journalists.Asked about the showdown with Le Pen, he said: “The only ultimatum really facing the French is that our country gets a budget.”On Thursday, Barnier dropped plans to raise electricity taxes in the budget as the RN had demanded, but it is keeping pressure on the government to hike pensions in line with inflation where the government had hoped to postpone an increase to save money.RN lawmaker Jean-Philippe Tanguy told Les Echos newspaper on Saturday if the bill is not modified the party would back a no-confidence motion.The test could come as soon as Monday if Barnier’s government has to use an aggressive constitutional measure to ram the social security financing legislation through parliament, which will trigger a no-confidence motion.”The government doesn’t seem to want to move (on pensions). We are waiting to see the social security bill on Monday to draw conclusions,” Tanguy said.The RN also wants planned cuts to medication reimbursements by the state to be axed, increased taxes on share buybacks and financial transactions as well as a cut in France’s contribution to the European Union’s budget.The government’s aim to cut the budget deficit next year to 5% of economic output from over 6% this year is already sliding in the face of costly concessions made to the RN and other parties.Standard & Poor’s said that it expected the deficit at 5.3% next year and said the outlook was unclear after that whether France could keep reducing the deficit to an EU limit of 3% as currently planned by 2029.As the RN has firmed up its demands, French debt and stocks have come under pressure in recent days, pushing the risk premium on French government bonds to their highest level in over 12 years.”The absence of a budget (and) political instability would bring a sudden and substantial increase in the financing costs of French debt,” Armand said.($1 = 0.9456 euros) More