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    Lighthizer, allies preparing to argue for steep new Trump tariffs – Politico

    Citing a document, the news service said Lighthizer and his allies have been circulating memos regarding plans to persuade both lawmakers and the US public that higher tariffs will boost economic activity, rather than hinder it.On the campaign trail, Trump proposed rolling out blanket levies of up to 20% on imports coming into the US, as well as a 60% duty on items from China.Although critics have flagged tariffs could ultimately reignite recently waning inflationary pressures, a source close to policy planning told Politico that Lighthizer and his allies will argue that economic models have failed to “accurately predict changes in the economy.”Politico added that the circulated document will point to a study conducted by the US International Trade Commission which showed that tariffs imposed during Trump’s first term in office contributed to an increase in domestic production in “every single industry.”Meanwhile, Lighthizer and Trump’s transition team have also been in talks with Congressional staff regarding Congress potentially backing the incoming administration’s tariff policies through legislation, Politico reported. This action would both break from years of precedent set by both Republicans and Democrats and make it more difficult for future presidents to reverse the tariffs.Congress has not imposed a tariff in almost a century, rather choosing to allow the president to adopt such measures — albeit only under extraordinary circumstances.Lighthizer was also named as a possible candidate for a number of key economic positions in the new Trump White House, including secretary of Commerce, Treasury, or a senior adviser role, Politico said.In a note to clients, analysts at ING said Lighthizer’s return to the forefront of US economic policymaking “shouldn’t have come as a surprise but serves as a reminder that US protectionism is on its way.” More

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    Republicans and Democrats Highly Divided in Economic Outlook Under Trump

    Consumer sentiment among Republicans has soared to its highest point since Donald J. Trump left the White House, while declining among Democrats.Donald J. Trump won last week’s election in part by promising to fix an economy many voters believed was broken.Republicans, at least, seem to believe him.Consumer sentiment among Republicans has soared nearly 30 percent in the week since Election Day, according to data from Morning Consult, an online survey firm. Republicans, according to the survey, now feel better about the economy than at any time since Mr. Trump lost his bid for re-election four years ago.Democrats, unsurprisingly, have had a very different reaction. Sentiment in that group has dropped 13 percent since Election Day, its lowest level since early 2023. For political independents, relatively little has changed in their attitudes toward the economy in recent days.

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    Consumer sentiment by party identification
    Note: Data shown as five-day moving average. Political independents not shown.Source: Morning ConsultBy The New York TimesThe big partisan shifts in Americans’ economic views are not a surprise. There have been similar swings after past presidential elections, although the trend has become more pronounced in recent decades. And voters have said for months that their economic expectations would depend partly on whether their preferred candidate won the White House.“Consumers have been telling us all year long their expectation for the economy is contingent on the outcome of the election,” said Joanne Hsu, director of the University of Michigan’s long-running survey of consumer sentiment. She expects to see large partisan swings in that survey as well, she said, when data from after the election becomes available this month.Measures of consumer sentiment have been depressed for much of President Biden’s time in office, though indicators such as the unemployment rate and wage growth have indicated a strong economy. In polls and interviews, Americans have cited inflation as one of the main sources of their dissatisfaction with Mr. Biden, even as inflation has cooled.Economic sentiment has begun to improve in recent months, however, perhaps suggesting that more Americans are starting to see improvements in inflation in their daily lives — albeit too late to help Democrats in this month’s elections.“Consumers probably are seeing and to some extent digesting some of the good economic news,” said Deni Koenhemsi, head of economic analysis for Morning Consult.Ms. Koenhemsi noted that consumers’ expectations had improved more rapidly than their assessment of the economy’s current state. That suggests that many are still struggling with high prices but becoming more optimistic about the months ahead.That gradual process isn’t surprising, said Neale Mahoney, a Stanford University economist who worked in Mr. Biden’s administration. In research published last year, Mr. Mahoney and a colleague found that it takes time for sentiment to adjust as inflation cools and people become used to the new, higher price of many goods and services.“Even if measured inflation has decreased, the way people experience inflation, they may still be acclimatizing to the price increases that were most acute in summer of 2022 into 2023,” Mr. Mahoney said.The election, he added, could accelerate that process, at least for Republicans, who might be more inclined to reset their expectations once their preferred candidate is in office. More

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    South America’s ‘made in China’ megaport prepares to transform trade

    Ahead of the ribbon-cutting at the Port of Chancay — a Chinese-built megaport on Peru’s Pacific coast that is set to transform regional trade — Chinese-made ZPMC unmanned cranes line the quay.BYD pick-up trucks sit ready to shuttle engineers around, while Huawei 5G internet towers have been freshly constructed to handle the automated operation.“Everything is made in China,” said a beaming Mario de las Casas, public affairs manager of the port for Cosco Shipping, the Chinese state-owned shipping giant that will operate Chancay once it opens on Thursday. “This is a huge opportunity not just for Peru but for the whole region,” he added, as Peruvian and Chinese flags flapped from street lights.Peruvian officials argue the port, built by Cosco with local miner Volcan, will transform Peru — a big producer of copper and fruit — into the Singapore of South America, and will upend maritime trade along the continent’s Pacific coast as it can accommodate larger vessels in its deep waters.Some content could not load. Check your internet connection or browser settings.But analysts and officials raised concerns that the $3.6bn project, which follows a series of other Chinese infrastructure investments, in effect represents a ceding of Peruvian sovereignty over the port.The US, for whom growing Chinese influence in Latin America presents a strategic problem, has warned the port could be used by Chinese warships. And the development may present an area of contention with US president-elect Donald Trump as he takes a tougher line against China. “The risks to Peru are at multiple levels,” said Evan Ellis, professor of Latin American studies at the US Army War College. “Risk number one is the country not reaping the benefits of its abundant resources and geographic position, but rather the Chinese getting those benefits.”Chinese President Xi Jinping, in Peru this week to attend the Apec summit ahead of a state visit, will appear with Peruvian President Dina Boluarte at Chancay’s inauguration on Thursday via video link from Lima, 80km away. US President Joe Biden will also be in town for the Apec summit on his first and last visit to South America as president — with little to offer.In May, amid a dispute with Cosco, Peruvian lawmakers passed legislation granting it exclusive rights to operate Chancay, something Ellis said was “previously unthinkable and against the very essence of Peru’s assertion of sovereignty over its own ports, which are its window to the world”.Mario de las Casas, public affairs manager of the port for Cosco Shipping. He says the port will provide opportunity for the whole region More

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    US-China relations will depend on which Trump shows up

    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

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    Trump’s mixed signals for gas market

    $1 for 4 weeksThen $75 per month. Complete digital access to quality FT journalism. Cancel anytime during your trial.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 edition More

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    Piano maker Edelweiss finds the key to recalibrating supply chain

    Ownership of a piano has always had a loose connection to wealth and class: they are not cheap; they take up valuable space in a home; and learning to play requires much time and commitment. So, as the economies of the east Asia grew rapidly in the latter half of the 20th century, domestic demand for grands, baby grands and upright pianos surged. Before long, China became the world’s piano factory — buying up European firms and producing decent instruments on a massive scale. Even UK makers of high-quality pianos, such as Edelweiss, based just outside Cambridge, came to rely largely on parts being shipped from the east Asia — simply because the skills required to make them more locally had vanished.“Going back a hundred years or so, the British used to be quite good at it,” says Edelweiss’s creative director Mark Norman, whose father founded the business as a piano restoration firm in the mid 1970s. “But, now, around 80 per cent of the world’s piano parts are sourced in the far east.” Edelweiss, like other piano makers, came to rely on the imports. “If the containers of parts arrived regularly, it was a pretty good system,” Norman says. “We were about to fly out to China with a view to expanding our relationship [with Chinese factories] when Covid hit. Our flights were cancelled. We were quite glad we didn’t go, as we might never have got home again.”This was not just a postponed business meeting, however. China, in effect, stopped exporting during that stage of the pandemic, completely disrupting Edelweiss’s supply chain. “We were in a fortunate position in that we’d just ordered quite a lot of parts and we were stocked up,” recalls Norman. “But if they shut down for two years, or if it happened again, what would we do?”The firm had been worried about this kind of eventuality for a number of years and had pondered the possibility of making a piano entirely sourced and built in the UK. Up until then, Norman had resisted, considering it a near-impossible task. “The prospect was daunting,” he says. “But we had to secure a high-quality supply chain that wasn’t going to give us these problems, and obviously it would be desirable in terms of carbon footprint.”While decades spent restoring and building pianos to high standards had equipped Edelweiss with a wealth of skills, its staff actually had little knowledge of how to make the instrument’s constituent parts. The company therefore hired a respected American piano designer, Delwin Fandrich, to put together drawings for a new model, which the firm envisioned as being the smallest grand piano in the world. “Edelweiss took on a project that few companies — even much larger ones — are willing to consider,” says Fandrich. “Building any piano is a formidable task, but building one in-house to an all-new design even more so.”After the design was established, the firm started sounding out potential suppliers. “Initially, we didn’t tell them what the project was,” says Norman. “We really wanted to see how passionate they were, as we believe that, if you’re working on an instrument, you aren’t just doing a job. You’re making a piano, you have to go the extra mile to make it better.” Enthused by the response, Edelweiss decided to take the plunge, sending out legal non-disclosure agreements to guarantee confidentiality, then revealing their full plan to the preferred firms.One of the most critical elements was the piano’s frame. It is traditionally cast in iron — which requires a lengthy process of mould making, adjustment, and yet more mould making. Edelweiss could not find a foundry able to produce the cast iron it wanted, but was able to find a supplier who could cut it from steel. Then, the makers had to experiment with welding and bolting to produce a frame that could pass stringent stress tests. However, the action (the mechanism that brings the hammers into contact with the strings) proved one challenge too many; it was simply too complex to make from scratch.“You have to do thousands of tests on each key,” explains Norman. “The development process and quality control would be exacting and it would be very, very difficult to make any money. So, for this piano we’re using a carbon fibre composite action from the USA, which is very nice, we’re getting good results from it.” Overall, the process from design to the finished piano took three years; Norman estimates the financial cost as somewhere between £100,000 and £200,000 “which from one point of view isn’t too bad, but from another is rather a lot”.But whatever the precise outlay, it has left Edelweiss with a unique product — much loved by pianists — and in a much stronger position. “I wouldn’t say we were bulletproof,” says Norman. “But my father was always an innovator and, if he was still around, I think he’d be really pleased with what we’ve done.” More

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    Xi faces heat over failure to protect Chinese workers overseas

    $1 for 4 weeksThen $75 per month. Complete digital access to quality FT journalism. Cancel anytime during your trial.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 edition More

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    UK outlines National Health Service overhaul after budget uplift

    The government announced the major uplift in spending for the state-run NHS on Oct. 30 as part of a budget that involved sharp increases in tax, spending and borrowing to improve creaking public services from health to education to transport. Seeking to reassure markets that the spending splurge was a one-off, the government also promised reforms to make those public services more efficient. Health Minister Wes Streeting, who has previously said the NHS was “broken”, on Wednesday announced a package of measures to turn around the NHS in England. “We are announcing the reforms to make sure every penny of extra investment is well spent and cuts waiting times for patients,” he said in a statement, ahead of a speech he is due to give at a health conference in Liverpool. Under the reforms, persistently failing managers will be replaced and turnaround teams will be put into hospitals which are struggling financially and not providing a good enough service. Streeting said he wanted waiting times to be cut to 18 weeks from 18 months. Economists have blamed the shrinking size of Britain’s workforce on treatment delays which have stopped people from being fit enough to work.Other measures include putting different NHS providers into league tables and giving high-performing providers the incentive to run their budget as they will be permitted to invest any surplus in buildings, equipment and technology. A consultation will also look at banning NHS staff from resigning and then offering their services back to hospitals for a higher fee via a recruitment agency, the statement added. Earlier this year, NHS England cited several factors for its recent drop in productivity, including strikes, temporary staffing costs and the changing needs of patients.($1 = 0.7804 pounds) More