Connect with us

News

Dollar drops on reports Trump will scale back tariff plans

Published

on

Dollar drops on reports Trump will scale back tariff plans

Unlock the White House Watch newsletter for free

The dollar fell on Monday following reports that president-elect Donald Trump’s administration is considering watering down a campaign pledge to apply sweeping tariffs on imported goods.

The US dollar index, which tracks the currency against a basket of six peers, fell 1 per cent in morning trade after The Washington Post reported that potential tariffs may be confined to critical imports.

In November, Trump had promised blanket 10 or 20 per cent duties on all trading partners.

Advertisement

Chris Turner, global head of markets at ING, said the reports had sparked a “relief rally” in the euro against the dollar, with hopes that the region’s automakers could be spared. The tariffs might also “be less inflationary than first expected”, he added.

Shares in European carmakers, which have been hit in recent months by fears they would be targeted by the Trump administration, rallied. The Stoxx Europe 600 Automobiles & Parts index climbed 3.7 per cent, with BMW up nearly 6 per cent.

The euro was up 1.1 per cent against the dollar at $1.042, on track for its best day in more than a year. The single currency had been pushed to a two-year low by trade war worries. The pound, which was the best-performing G10 currency against the dollar last year, rose 1 per cent to $1.254.

Monday’s reports were “triggering some relief among investors that the initial tariffs won’t be as bad as feared”, sparking a “sharp reversal of recent US dollar gains,” said Lee Hardman, senior currency analyst at MUFG. More focused tariffs would help “to dampen [their] disruptive impact,” he added.

US government bonds, which have sold off in recent months as investors girded for higher inflation driven by broad tariffs, regained a little ground. The yield on the two-year US government bond, which moves with rate expectations, was down 0.02 percentage points at 4.26 per cent, as the price of the debt rose.

Advertisement

The dollar sell-off comes after a strong rally for the world’s de facto reserve currency that began in early October, as the market began to price in a greater prospect of a Trump election win. “The market had correctly anticipated a Trump victory,” said Jane Foley, senior FX strategist at Rabobank.

Analysts and economists expect Trump’s pro-growth, potentially inflationary policies, to limit the number of times that the US Federal Reserve will cut interest rates next year, boosting demand for the dollar relative to other major currencies. This was compounded by investor bets that the negative growth impact for the Eurozone would prompt the European Central Bank to cut rates more aggressively.

In mid-December, the Fed published economic forecasts that suggest interest rates will fall in 2025 by less than previously hoped. Last week, a top Fed official warned about the threat of resurgent US inflation after Trump takes power.

Investors expect the US central bank to cut rates at least once this year, with a 70 per cent chance of a second quarter-point cut. That probability increased slightly on Monday.

Expectations of interest-rate cuts by the European Central Bank were slightly pared back, with just under four quarter-point cuts priced in this year.

Advertisement
Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

News

Trump Again Hints at Jan. 6 Pardons, Including for Attacks on Police

Published

on

Trump Again Hints at Jan. 6 Pardons, Including for Attacks on Police

President-elect Donald J. Trump on Tuesday once again left open the possibility of offering pardons to some of his supporters who are serving prison time for assaulting police officers during the attack on the Capitol on Jan. 6, 2021.

Mr. Trump, who campaigned on a pledge to restore “law and order,” said that the pardons he intended to offer could cover people charged and convicted of violent crimes.

“Well, we’re looking at it,” Mr. Trump told reporters at a news conference at Mar-a-Lago, his Florida estate, when asked whether he was considering pardoning people charged with violent offenses. “We’ll be looking at the whole thing, but I’ll be making major pardons, yes.”

When a reporter pressed Mr. Trump on whether he would pardon anyone who attacked a police officer, Mr. Trump deflected and suggested that his supporters were the true victims of Jan. 6.

“Well, you know, the only one that was killed was a beautiful young lady named Ashli Babbitt,” he said, adding that she was “shot for no reason whatsoever.” In fact, three other pro-Trump protesters also died during the riot.

Advertisement

Ms. Babbitt, an Air Force veteran, was shot and killed by a police officer while she was part of a group trying to break through a door to the House floor, where lawmakers were seeking shelter from the mob. Her death has become a cause célèbre on the right.

Mr. Trump did not mention the more than 140 police officers who were injured during the attack by people wielding baseball bats, flagpoles, metal batons, broken table legs, crutches and even a hockey stick. He also said nothing about four officers who later died by suicide or another who died shortly after Jan. 6 of a stroke that a medical examiner determined was caused in part by “all that transpired” on that day.

At Tuesday’s news conference, Mr. Trump sought to blame the F.B.I. for the riot, echoing a conspiracy theory that is widespread on the right and that was contradicted by a recent report from the Justice Department’s internal watchdog.

Moreover, he seemed to suggest, without evidence, that the Iranian-backed terrorist organization Hezbollah was somehow involved in the attack — an allegation that has never come up in the multiple criminal and congressional investigations into Jan. 6.

Representatives for Mr. Trump did not respond to questions about these comments.

Advertisement

Even though he repeatedly promised during his campaign and after the election to issue pardons to potentially hundreds of Jan. 6 rioters, Mr. Trump has never described specific criteria for who will get clemency.

Sometimes, he has said that he will pardon rioters charged only with nonviolent crimes — of which there are about 1,000. At other times, including during an interview with the National Association of Black Journalists, Mr. Trump left open the possibility that he would pardon people who attacked the police.

When Mr. Trump won the election, there was jubilation among the Jan. 6 defendants and their families who have been urging him to issue a blanket amnesty to all of the nearly 1,600 who have been charged over the past four years in connection with the Capitol attack.

But if Mr. Trump decides to do that, it will mean granting some form of clemency to people, say, who hit officers with two-by-fours or members of far-right groups like the Proud Boys who were convicted and imprisoned on charges of seditious conspiracy.

After initially condemning the riot as “a heinous attack” and vowing that those who broke the law that day “will pay,” Mr. Trump and his allies quickly pivoted into a campaign to rebrand and launder Jan. 6 as a day of patriotism by Trump supporters. Mr. Trump continued that rewriting of history at Tuesday’s news conference.

Advertisement

He portrayed the imprisoned supporters as nonviolent victims of unfair prosecutors. He falsely claimed that his supporters brought “not one gun” to the Capitol. And he implied, without evidence, that the riot was instead a plot by either the F.B.I. or shadowy foreign actors.

“They had people in some form related to the F.B.I.,” Mr. Trump said of the riot, referring to the false-flag conspiracy theory prevalent on the right.

The baseless claim that Jan. 6 was instigated by “deep state” actors rather than the hundreds of Trump supporters who were trying to block the peaceful transfer of power in his name has been rejected by defense lawyers working on Capitol riot cases, the Justice Department’s inspector general and even some of the F.B.I.’s own informants who were at the Capitol that day.

“We have to find out about Hezbollah,” Mr. Trump said. “We have to find out about who exactly was in that whole thing, because people that did some bad things were not prosecuted.”

It is unclear why Mr. Trump mentioned Hezbollah in connection with Jan. 6.

Advertisement
Continue Reading

News

UK minister accuses Musk of endangering her life

Published

on

UK minister accuses Musk of endangering her life

Home Office minister Jess Phillips has said that “disinformation” spread by Elon Musk about grooming gangs in the UK and the government’s response is “endangering” her life.

Phillips has come under sustained attack from the technology billionaire, who has labelled her an “evil witch” and “rape genocide apologist”, while calling for her to be jailed.

Britain has been convulsed in recent days by a dispute over the handling of historic grooming cases involving sexual exploitation of girls by gangs of mainly British-Pakistani men after Musk called for a new national inquiry into the scandal.

Musk’s outbursts against Phillips, who holds the safeguarding brief in the UK government, began after it emerged she had rejected a request by Oldham council for the Home Office to hold a Whitehall-led inquiry into the grooming scandal in the Greater Manchester town.

The Home Office has instead urged the local authority to undertake its own review, citing precedents for probes in other towns afflicted by rape gangs, including Telford and Rotherham, while highlighting a national inquiry into child sexual exploitation that concluded in 2022.

Advertisement

On Tuesday Phillips told the BBC that threats to her own life had increased since Musk’s salvos against her on his social media platform X, describing the situation as “very tiring”, but adding: “I’m no stranger to people who don’t know what they’re talking about trying to silence women like me.”

However, she added that her treatment at the hands of Musk was “nothing” in comparison to the experience of abuse victims.

Phillips told Sky News that SpaceX-owner Musk should “crack on with getting to Mars” and expressed her anger at political opponents, including Tory leader Kemi Badenoch, who have pushed for a national inquiry into grooming gangs after Musk made the same demand.

Musk has been approached for comment.

UK Prime Minister Sir Keir Starmer issued a staunch defence of Phillips on Monday, paying tribute to her record defending female victims of violence and abuse.

Advertisement

Phillips’ comments came after shadow justice secretary Robert Jenrick conceded the Conservatives could have “done more” to crack down on sex abuse gangs while in government.

Jenrick defended the previous Tory administration’s record, but he told the BBC: “Could we have done more, should we do more now? Yes, absolutely — we have to root this out.”

He said a review by Professor Alexis Jay, who chaired a seven-year national inquiry into child sexual abuse in England and Wales that reported in 2022, only looked at rape gangs in six towns, but added they may have operated in up to 50.

Jenrick also defended his party’s criticism of the Labour government’s decision not to launch a Whitehall-led inquiry into the scandal in Oldham. 

Challenged over the refusal of the last Tory government to launch an inquiry into rape gangs in Oldham, he said the previous request came from a “small number of councillors”, while the recent one was by the local authority itself. 

Advertisement

Jenrick, who stood unsuccessfully for the Tory leadership last year, defended his controversial comments last week that mass migration of people to the UK from “alien cultures” with “medieval attitudes towards women” had contributed to the scandal. 

He said he would not “disguise” or “sanitise” his language to avoid causing offence, pointing to evidence that fear of being labelled racist had contributed to authorities failing to take action against gangs that mainly involved men of Pakistani heritage.

Starmer has accused Conservative politicians of “amplifying what the far right is saying” on child sexual exploitation, after failing to act “for 14 long years”.

Jay on Tuesday said there had been “politicisation” of the issue and warned that a fresh probe could delay the implementation of her review’s recommendations.

She criticised people for having “waded into the argument” over the issue “in a very uninformed way”. 

Advertisement

Jay has previously criticised the former Conservative government for failing to implement the main 20 recommendations in her 2022 report, which warned of “endemic” abuse across society. 

Continue Reading

News

Florida judge blocks release of special counsel report on Trump cases

Published

on

Florida judge blocks release of special counsel report on Trump cases

Special Counsel Jack Smith arrives to give remarks on an indictment against Trump in 2023 in Washington, D.C.

Drew Angerer/Getty Images


hide caption

toggle caption

Advertisement

Drew Angerer/Getty Images

Florida Judge Aileen Cannon on Tuesday temporarily blocked the Justice Department from releasing a final report by special counsel Jack Smith, in the latest setback for federal criminal charges against Donald Trump.

Prosecutors dropped two criminal cases against Trump after he won the 2024 election, and the final report by Smith may be the last chance for prosecutors to explain their decisions.

Trump was charged with election interference in Washington, D.C., and with hoarding classified documents at his Mar-a-Lago resort and refusing to return them to the FBI. Smith dropped the cases after the November election, following a longstanding Justice Department policy against prosecuting a sitting president.

Advertisement

But special counsels are also obligated to file a report on their actions with the attorney general when they finish their work. The current attorney general, Merrick Garland, has pledged to make most of those reports public.

Smith had been set to file his report to Garland on Tuesday, with an eye to releasing it to the public as soon as this week.

But Cannon — who was appointed to the bench by Trump and had earlier dismissed the documents case — ordered the DOJ not to share Jack Smith’s final report until a federal appeals court resolves the legal fight.

Cannon had thrown out the prosecution of Trump and two codefendants, longtime aides Walt Nauta and Carlos De Oliveira, on the ground that Smith had been appointed in an unconstitutional manner. After Trump won the 2024 election, the Justice Department dropped him from its appeal. But it continued the appellate case for the other two defendants, who raised concern that they would be prejudiced if Smith’s final report is published while they still face the threat of a trial.

Trump has also argued the special counsel was appointed unlawfully and that any public report would be legally invalid and hurt his transition into the White House.

Advertisement

He personally attacked Smith at a press conference on Tuesday, calling him “a mean, nasty guy” and praising Cannon’s decision to throw out the documents case.

The U.S. Court of Appeals for the Eleventh Circuit is set to rule on the emergency motion to block the report’s release.

Rep. Gerald Connolly, Va., the top Democrat on the House Oversight and Government Reform Committee, criticized Cannon’s decision on Tuesday.

“DOJ must release its report on Trump’s mishandling of classified documents by January 20 so that the American people can understand the full extent of the President-elect’s unlawful possession of hundreds of the government’s most sensitive documents,” he said in a statement. “The public’s right to know is paramount.”

Appeal of sentencing fails

However, another case against the president-elect is moving ahead: the only one of his multiple criminal cases to go to trial.

Advertisement

A New York state appeals court on Tuesday denied the request from Trump’s legal team for a delay in his sentencing in his hush-money conviction, which is scheduled for Friday, just 10 days before his inauguration.

A state jury convicted Trump for 34 counts of falsifying business records to conceal a payment to adult film star Stormy Daniels. Trump’s legal team had sought to delay or scrap the entire case, arguing the president-elect was immune from prosecution.

New York Judge Juan Merchan had previously delayed the sentencing multiple times, but recently said Trump’s lawyers failed to prove the president-elect was immune from the charges.

Continue Reading

Trending