BEIJING: Chinese President Xi Jinping said Thursday that China&rsquo;s development could go &ldquo;hand-in-hand&rdquo; with US President Donald Trump&rsquo;s &ldquo;make America great again&rdquo; agenda, as both leaders met in Beijing for talks covering trade,&nbsp;<a href="https://www.pakistantv.com/article/usisrael-war-on-iran-day-76" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">Iran</a>&nbsp;and broader global issues. &ldquo;Achieving the great rejuvenation of the Chinese nation and making America great again can totally go hand in hand, help each other succeed, and advance the well-being of the whole world,&rdquo; Xi said at a banquet after the talks. US President Donald Trump said discussions with Xi were &ldquo;extremely positive and productive&rdquo; during remarks at the Great Hall of the People. &ldquo;We had extremely positive and productive conversations and meetings today with the Chinese delegation earlier,&rdquo; Trump said, calling the banquet &ldquo;another cherished opportunity to discuss among friends.&rdquo; Trump also said he had extended an invitation for Xi and his wife Peng Liyuan to visit the White House on September 24. &ldquo;It is my honor to extend an invitation to you, Madam Peng, to visit us at the White House this September 24, and we look forward to it,&rdquo; he said. The White House said both leaders agreed that the&nbsp;<a href="https://www.pakistantv.com/article/oil-soars-as-trump-rejects-irans-terms" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">Strait of Hormuz</a>&nbsp;&ldquo;must remain open&rdquo; to ensure the uninterrupted flow of global energy supplies. Trump said the two countries would have &ldquo;a fantastic future together,&rdquo; while Xi said China and the United States &ldquo;should be partners and not rivals.&rdquo; Xi was received with a formal red-carpet welcome at the Great Hall of the People, including military honors, a gun salute and schoolchildren chanting &ldquo;Welcome!&rdquo; The visit marks the first by a US president to China in nearly a decade, taking place amid continuing tensions over trade, technology and global security. Xi said stable ties between the two countries are important for the world, adding: &ldquo;Cooperation benefits both sides, while confrontation harms both.&rdquo; He also told visiting US business executives that China would continue to expand its openness to international companies. &ldquo;China&rsquo;s doors to the outside world will open wider and wider... American companies will enjoy even brighter prospects in China,&rdquo; he said, according to Chinese state media. Among US business leaders accompanying Trump were Nvidia CEO Jensen Huang and Tesla CEO Elon Musk. Musk described the meetings as &ldquo;wonderful,&rdquo; while Huang said the two leaders &ldquo;were incredible.&rdquo; Iran was a key issue in the discussions after tensions in the Middle East delayed Trump&rsquo;s visit earlier this year. Trump said he expected a &ldquo;long talk&rdquo; with Xi on Iran, which exports most of its sanctioned oil to China, but added: &ldquo;I don&rsquo;t think we need any help with Iran&rdquo; from Beijing. US Secretary of State Marco Rubio said Washington hoped China would take &ldquo;a more active role&rdquo; in the Persian Gulf region. <a href="https://www.pakistantv.com/article/chinese-us-delegations-meet-for-trade-talks-in-paris-state-media" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">Trade and tariffs</a>&nbsp;also featured prominently, with Trump seeking agreements on agriculture, aircraft and other sectors. Before the visit, Trump said he would push for greater Chinese market access for US companies. Both sides were also expected to discuss extending a one-year&nbsp;<a href="https://www.pakistantv.com/article/china-urges-us-to-cancel-unilateral-tariffs-after-supreme-court-ruling" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">tariff</a>&nbsp;truce agreed in South Korea last October after tariffs between the two countries rose above 100%. China&rsquo;s restrictions on rare-earth exports and growing competition in artificial intelligence were also part of the agenda. Trump was also scheduled to visit Beijing&rsquo;s historic Temple of Heaven as both governments sought to manage a tense but economically significant relationship.

A man films a news program about the meeting between US President Donald Trump and China’s President Xi Jinping, on a giant screen outside a shopping mall in Beijing on May 14, 2026. (AFP)

Americas

China

Talks between the Chinese and US presidents in Beijing focused on trade and Iran, with both sides expressing optimism about future cooperation and stability in bilateral relations.

Xi says China progress compatible with making America great again

BEIJING: US President Donald Trump landed in Beijing on Wednesday for a high-stakes summit with Chinese leader Xi Jinping aimed at easing deep tensions between the rival superpowers. Giving a fist pump, Trump descended the steps of Air Force One after touching down at Beijing Capital International Airport, kicking off the first visit to China by a US president in nearly a decade. Right behind him were Tesla boss Elon Musk and Nvidia chief Jensen Huang &ndash; potent symbols of the business deals that Trump hopes to sign between the world&#39;s biggest economies. Trump was greeted with a bunch of flowers and then walked along the red carpet, which was lined with 300 Chinese youth in white uniforms chanting &quot;welcome&quot; and waving small Chinese and US flags in unison. While en route to Beijing, Trump said on social media he would &quot;be asking President Xi, a Leader of extraordinary distinction, to &#39;open up&#39; China so that these brilliant people can work their magic&quot;. Nvidia&#39;s Huang was a surprise late addition to the trip, joining the plane at a stopover in Alaska. China is currently banned under US national security rules from buying the cutting-edge AI chips that the company produces. But&nbsp;<a href="https://www.pakistantv.com/article/us-israel-war-on-iran-day-75" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">Iran</a>, trade and Taiwan, among other topics, loom over the highly anticipated meeting, which Trump had already delayed from March because of the war the United States and Israel started in the Middle East. China &#39;welcomes&#39; Trump visit Visiting China for the first time since 2017 during his previous term, Trump is expected to receive a lavish welcome from Chinese authorities. Trump and Xi will hold talks at 10:00 am local time on Thursday in Beijing&#39;s opulent Great Hall of the People. The US president will also visit the historic Temple of Heaven, a world heritage site where China&#39;s emperors once prayed for good&nbsp;harvest. The leaders will then enjoy a state banquet in the evening. On Friday, they are set to have tea and a working lunch before Trump heads home. As he departed the White House, Trump said he expected a &quot;long talk&quot; with Xi about the joint US-Israeli war with Iran, which sells most of its US-sanctioned oil to China. But he also downplayed disagreements, telling reporters that &quot;I don&#39;t think we need any help with Iran&quot; from China and that Xi had been &quot;relatively good&quot; on the topic. The Chinese foreign ministry said Wednesday it &quot;welcomes&quot; Trump&#39;s visit and that &quot;China stands ready to work with the United States... to expand cooperation and manage differences&quot;. Yet Beijing is growing impatient for peace, with Foreign Minister Wang Yi urging his Pakistani counterpart on Tuesday to step up mediation efforts between Iran and the United States. &#39;Big deal&#39; The long-simmering trade war between the two countries will also be top of the agenda, after Trump&#39;s sweeping tariffs last year triggered tit-for-tat levies that exceeded 100%. Trump and Xi are set to discuss extending a one-year tariff truce, which the two leaders reached during their last meeting in South Korea in October, although a deal is far from certain. China&#39;s controls on rare earth and agriculture exports are also expected to be on the menu. The tense buildup to the summit was already visible on the streets of Beijing, with police monitoring major intersections and checking the ID cards of passengers on the metro, AFP journalists saw. &quot;It&#39;s definitely a big deal,&quot; said Wen Wen, a 24-year-old woman travelling from the eastern city of Nanjing, when asked by AFP about Trump&#39;s visit.

Trump arrives in Beijing for a summit with Chinese leader Xi Jinping aimed at easing tensions, as both sides prepare to discuss trade, tariffs and geopolitical disputes between the superpowers.

Trump and Xi set for high-stakes talks in Beijing

ISLAMABAD: Japanese auto giant Toyota forecast Friday a 22% fall in net profit in the year to next March, as it battles the effects of US tariffs. The world&#39;s largest automaker by vehicle sales made the announcement as it revealed net profit fell 19.2% to 3.8 trillion yen ($25 billion) in the 2025-26 fiscal year. &quot;Despite the impact of US tariffs we secured profits consistent with our guidance due to increased vehicle sales volumes and the effects of price revisions underpinned by strong product competitiveness, as well as steadily accumulated improvement efforts such as expanded value chain revenues,&quot; Toyota said in a statement. Revenues last fiscal year rose 5.5% to 50.7 trillion yen, and for the current period it projected them to hit 51.0 trillion yen.

Japanese auto giant Toyota forecast Friday a 22-percent fall in net profit in the year to next March.

Business

Toyota forecast a 22% drop in annual net profit due to US tariffs, despite strong vehicle sales and rising revenues.

Toyota sees 22% profit drop this year

PALM BEACH: US President Donald Trump on Saturday escalated his quest to acquire Greenland, threatening multiple <a href="https://www.pakistantv.com/article/greenlanders-put-faith-in-europes-troops-and-us-congress" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">European nations with tariffs </a>of up to 25 percent until his purchase of the Danish territory is achieved.&nbsp;Trump&#39;s threats came as thousands of people protested in the capital of Greenland against his wish to acquire the mineral-rich island at the gateway to the Arctic.&nbsp;Thousands more protested in Copenhagen and other Danish cities.&nbsp;The US president aimed his ire at Denmark, a fellow NATO member, as well as several European countries that have deployed troops in recent days to the vast autonomous territory with a population of 57,000.&nbsp;If realized, Trump&#39;s threats against Washington&#39;s NATO partners would create unprecedented tension within the alliance.&nbsp;From February 1, Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland would be subject to a 10-percent tariff on all goods sent to the United States, Trump said in a post on his Truth Social network.&nbsp;&quot;On June 1st, 2026, the Tariff will be increased to 25%. This Tariff will be due and payable until such time as a Deal is reached for the Complete and Total purchase of Greenland,&quot; he wrote.&nbsp;&quot;These Countries, who are playing this very dangerous game, have put a level of risk in play that is not tenable or sustainable,&quot; Trump said.&nbsp;&quot;Therefore, it is imperative that, in order to protect <a href="https://www.pakistantv.com/article/trump-says-us-needs-greenland-for-national-security" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">Global Peace and Security</a>, strong measures be taken so that this potentially perilous situation end quickly, and without question.&quot;&nbsp;Trump added that he was &quot;immediately open to negotiation with Denmark and/or any of these Countries.&quot;&nbsp;Make America Go Away&nbsp;In Nuuk, thousands of people, including the territory&#39;s prime minister, Jens-Frederik Nielsen, waved Greenlandic flags, chanted slogans and sang traditional Inuit songs under light rain.&nbsp;Many wore caps with the words &quot;Make America Go Away&quot; -- a riff on Trump&#39;s &quot;Make America Great Again&quot; slogan.&nbsp;&quot;We don&#39;t want Trump invading Greenland, that is the message,&quot; 44-year-old nurse Paarniq Larsen Strum said at the Nuuk rally, calling the situation &quot;nerve-wracking.&quot;&nbsp;&quot;We demand respect for our country&#39;s right to self-determination and for us as a people,&quot; added protest organizer Avijaja Rosing-Olsen.&nbsp;In Copenhagen, charity worker Kirsten Hjoernholm, 52, said it was important to show unity with Greenlanders.&nbsp;&quot;You cannot be bullied by an ally. It&#39;s about international law,&quot; she said.&nbsp;Around her, demonstrators waved the flags of Denmark and Greenland while chanting &quot;Kalaallit Nunaat!&quot; -- the vast Arctic island&#39;s name in Greenlandic.&nbsp;Some also held placards saying &quot;USA already has too much ICE,&quot; referring to Trump&#39;s deployment of federal immigration officers in US cities, while others chanted &quot;Greenland is not for sale.&quot;&nbsp;US &#39;security&#39; claimsTrump has repeatedly claimed that the United States needs Greenland for US &quot;national security.&quot; He also claims that Denmark is incapable of ensuring the territory&#39;s security, notably from China and Russia.&nbsp;France said the military exercise in Greenland was designed to show the world that they will defend the territory.&nbsp;Denmark said the US had been invited to join the drill.&nbsp;It was not immediately clear what authority the US president would invoke to impose the threatened tariffs of up to 25 percent.&nbsp;Since returning to the presidency, Trump has unleashed sweeping tariffs on goods from virtually all trading partners, to address what Washington says are unfair trade practices and as a tool to press governments on US concerns.&nbsp;Washington and the European Union struck a deal last summer to lower US tariffs on key European goods, with the deal currently being implemented.&nbsp;Also on Saturday, a delegation of US lawmakers were wrapping up a visit to Copenhagen for talks with Greenlandic and Danish politicians.&nbsp;The group, led by Democratic Senator Chris Coons, told reporters that Trump&#39;s stance was misguided and not backed by the majority of Americans.&nbsp;It is also roundly rejected by Greenlanders, 85 percent of whom -- according to the latest poll published in January 2025 -- oppose the territory joining the United States. Only six percent were in favor.

Europe

Trump escalated his push to buy Greenland, threatening up to 25% tariffs on Denmark and European allies, sparking mass protests in Greenland and Denmark and raising unprecedented tensions within NATO over sovereignty and security concerns.

Trump threatens Europe with tariffs over Greenland as protesters rally

Reuters

BEIJING: China&#39;s economic growth slowed to the weakest pace in a year in the third quarter, as a property crisis and trade tensions hurt demand, leaving policymakers with the daunting challenge of rebalancing GDP drivers towards greater consumption over time.&nbsp;Authorities have unveiled modest stimulus measures this year, supported by resilient exports and strong stock markets, but renewed US-China trade tensions pose risks. While there is room for additional support, analysts are divided over whether policymakers will act this year.&nbsp;Data on Monday showed gross domestic product (GDP) grew 4.8% in July-September, slowing from 5.2% in the second quarter and in line with analysts&#39; expectations in a Reuters poll for a rise of 4.8%.&nbsp;China is aiming for full-year growth of around 5%.&nbsp;&quot;The market understanding was that China is going to miss the target, no matter what. Even with stimulus, it was going to be below 5%,&quot; said Dan Wang, China director at Eurasia Group.&nbsp;&quot;But judging by the figure for the first three quarters, it&#39;s going to hit the target, suggesting China can withstand any pressure from the US, even with such levels of tariff threats and export restrictions. Beijing is sending the signal that it is capable of reaching its development goals and is strongly committed to its policies.&quot;&nbsp;Quarterly, GDP grew 1.1% in the third quarter, the National Bureau of Statistics data showed, compared with a forecast 0.8% increase and a revised 1.0% gain in the previous quarter.

GDP grew 4.8% in July-September, slowing from 5.2% in the second quarter and in line with analysts' expectations in a Reuters poll for a rise of 4.8%.

China's Q3 GDP growth slows to one-year low

WASHINGTON: US Treasury Secretary Scott Bessent said on Friday he expects to meet next week with Chinese Vice Premier He Lifeng in Malaysia to try to forestall an escalation of US tariffs on Chinese goods that President Donald Trump said was unsustainable.&nbsp;Bessent announced this during a White House cabinet meeting and later confirmed plans for a meeting after a call with He on Friday evening. Bessent said on X that the two officials &quot;engaged in frank and detailed discussions regarding trade between the United States and China.&quot;&nbsp;&quot;We will meet in person next week to continue our discussions,&quot; Bessent wrote.<div class="fr-embed"><div class="twitter-tweet twitter-tweet-rendered" style="display: flex; max-width: 550px; width: 100%; margin-top: 10px; margin-bottom: 10px;"><iframe id="twitter-widget-0" scrolling="no" frameborder="0" allowfullscreen="true" title="X Post" src="https://platform.twitter.com/embed/Tweet.html?dnt=false&embedId=twitter-widget-0&features=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%3D%3D&frame=false&hideCard=false&hideThread=false&id=1979362198461006087&lang=en&origin=https%3A%2F%2Fmain.d1wrm1qseko1cp.amplifyapp.com%2Farticles%2F&sessionId=15568bb486c9b1c028da1e7de612ec7d28743b2f&theme=light&widgetsVersion=2615f7e52b7e0%3A1702314776716&width=550px" style="position: static; visibility: visible; width: 550px; height: 345px; display: block; flex-grow: 1;"></iframe></div></div>China state news agency Xinhua reported that He and Bessent had &quot;candid, in-depth, and constructive discussions on major issues in bilateral economic and trade relations&quot; in a video call and agreed to a new round of trade talks as soon as possible.&nbsp;The two officials previously met in four European cities over six months to hammer out a tariff truce that brought duties down from triple-digit levels for each country. That agreement expires on November 10.&nbsp;A meeting in Malaysia would shift the venue to a Southeast Asian exporter that trades heavily with both China and the US and whose goods are now subject to a 19% duty imposed by Trump. Malaysia also faces a threatened 100% US tariff on its semiconductors and derivative electronics devices under a national security trade review.&nbsp;Trump earlier on Friday blamed Beijing for the latest impasse, a dispute over China&#39;s sweeping new export restrictions on rare-earth minerals and magnets. He has threatened an additional 100% tariff on Chinese imports starting on November 1 unless Beijing scraps the restrictions.&nbsp;Asked whether such a high tariff was sustainable and what that might do to the US economy, Trump replied: &quot;It&#39;s not sustainable, but that&#39;s what the number is.&quot;&nbsp;&quot;They forced me to do that,&quot; he said in an interview with Fox Business Network that was broadcast on Friday.&nbsp;Trump also has threatened to impose new US export controls that would halt supplies of &quot;any and all critical software.&quot;&nbsp;The new trade actions were Trump&#39;s reaction to China dramatically expanding its export controls on rare-earth elements. China dominates the market for such elements, which are essential to tech manufacturing.&nbsp;Bessent and US Trade Representative Jamieson Greer on Wednesday blasted the restrictions as a threat to global supply chains.&nbsp;Trump also confirmed he would meet with Chinese President Xi Jinping in two weeks in South Korea and expressed admiration for the Chinese leader.&nbsp;&quot;I think we&#39;re going to be fine with China, but we have to have a fair deal. It&#39;s got to be fair,&quot; Trump said on FBN&#39;s &quot;Mornings with Maria,&quot; which was taped on Thursday.&nbsp;Later, as he was preparing to have lunch at the White House with Ukrainian President Volodymyr Zelenskiy to discuss efforts to end its war with Russia, Trump said: &quot;China wants to talk, and we like talking to China.&quot;&nbsp;The softening in tone and affirmation of his intent to meet with Xi helped stem Wall Street&#39;s early losses on Friday. Major US stock indexes, which have been rattled over the last week by Trump&#39;s abrupt re-imposition of steep levies on Chinese imports and by credit worries among regional banks, were up in afternoon trading.&nbsp;WTO urges de-escalation of trade spatsThe head of the World Trade Organization urged the US and China to de-escalate trade tensions, warning that a decoupling by the world&#39;s two largest economies could reduce global economic output by 7% over the longer term.&nbsp;WTO Director-General Ngozi Okonjo-Iweala told Reuters in an interview the global trade body was extremely concerned about the latest spike in US-China trade tensions and had spoken with officials from both countries to encourage more dialogue.&nbsp;But tensions continued to run high, even as Trump and Xi prepared to meet.&nbsp;Bessent took aim at China&#39;s state-driven economic practices in a statement to the IMF&#39;s steering committee on Friday, urging the IMF and World Bank to take a tougher stance on China&#39;s external and internal imbalances and industrial policies that US officials say have helped China build up excess manufacturing capacity that is flooding the world with cheap goods.&nbsp;And China&#39;s Commerce Ministry on Friday accused the US of undermining the rules-based multilateral trading system since the Trump administration took office in 2025, vowing to intensify its use of dispute settlement actions at the WTO.&nbsp;It also urged the US to roll back measures that breach non-discrimination rules and align its industrial and security policies with WTO obligations.&nbsp;Bessent earlier in the week had accused one of He&#39;s top aides of being &quot;unhinged&quot; in recent interactions with US trade negotiators. China said on Friday that Bessent&#39;s remarks &quot;seriously distort the facts.&quot;

Bessent says on X that the two officials "engaged in frank and detailed discussions regarding trade between the United States and China."

Bessent, Chinese vice premier to meet to try to defuse US tariff hike

FRANKFURT: Europe&#39;s economy is holding up better than expected in the face of US President Donald Trump&#39;s new tariffs &mdash; in part because the European Union didn&#39;t retaliate with self-defeating tariffs of its own, the head of the European Central Bank said Tuesday. Christine Lagarde said the impact of Trump&#39;s trade war on growth and inflation in the 20 countries that use the euro currency had also been softened by a stronger euro and by the conclusion of a trade deal with Trump. The agreement capped tariffs at 15% and took away the uncertainty that threatened to delay or disrupt business investment. &ldquo;A year ago, most would have assumed that US tariffs ... would trigger a major adverse shock to the euro area economy,&rdquo; Large said in a speech delivered at a central banking conference in Helsinki, Finland. &ldquo;Yet some of these assumptions have not been borne out.&rdquo; There had been little impact on inflation, she said, and effects on growth have been &ldquo;relatively moderate&rdquo; due to European governments taking pro-growth measures in response. The European Union&#39;s executive commission prepared a list of goods to hit with retaliatory tariffs, or import taxes, but suspended them once the tariff deal was struck between Trump and Commission President Ursula von der Leyen in July. The reasons for nonretaliation included pressure from business groups not to get into a prolonged cycle of tit-for-tat tariff increases, as well as concerns about jeopardizing US support for Ukraine. As a result, Europe continued to receive the imported raw materials and goods it needed for its economy without hindrance from high tariff costs or bottlenecks that could raise prices. &ldquo;As a result, we have not yet seen significant supply chain disruption,&rdquo; Lagarde said. &ldquo;Global supply chain pressures remain contained, and in the euro area, bottleneck indicators are close to historical averages.&rdquo; Trump&#39;s policies have been accompanied by a fall in the dollar and a corresponding strengthening of the euro. That makes Europe&#39;s imports cheaper and helps the ECB in its efforts to contain the annual rate of inflation, which was a moderate 2% in August. The EU and its member governments have taken additional measures to strengthen growth, including free trade agreements with the South American Mercosur countries &mdash; Argentina, Brazil, Bolivia, Paraguay, and Uruguay &mdash; and with Mexico. National governments have increased defense spending due to the perceived threat from a newly assertive Russia. At the same time, Germany has committed to large-scale investment in roads, rails, and bridges after years of underspending. Nonetheless, growth remains mediocre, coming in at only 0.1% in the second quarter compared to the previous quarter. Tariffs and the associated uncertainty will still reduce the growth rate by approximately 0.7 percentage points through 2025 and 2027.

Banking

ECB chief Christine Lagarde said Europe’s economy has withstood Trump’s tariffs better than expected. A trade deal, stronger euro, and pro-growth measures limited inflation and disruption, though growth remains weak and tariffs will weigh modestly until 2027.

Europe's top central banker says economy holding up better than expected

BERLIN: German sandal maker Birkenstock raised its expectations for fiscal year 2025 revenue on Thursday, driven by demand for its clogs and shoes from affluent shoppers despite price hikes.&nbsp;Demand for trendy and aspirational products such as Birkenstock&#39;s pricey sandals, popular prams from Bugaboo, as well as Coach&#39;s Tabby handbags, has remained undeterred from higher-income consumers in the United States, even as tariffs and sticky inflation weigh on budgets in lower-income households.&nbsp;Birkenstock has been increasing prices to mitigate the impact of a 15% US tariff on European imports, but demand has been strong for its products, including the suede leather closed-toe Boston clogs, which are priced as high as $275 online.&nbsp;The company, whose shares were up about 6% in premarket trading, now expects sales of at least 2.09 billion euros ($2.45 billion), implying growth of about 17.5% at constant currency rates over last year.&nbsp;The New York-listed sandal maker had previously said it expects full-year revenue growth at the higher end of its forecast range of 15%-17%.&nbsp;At least 520 million euros of sales are set to be recorded in the fourth quarter, which typically ends in September, an 18% growth year-on-year for the three months, Birkenstock said. Full-price demand for its products contributed to a profit beat in the third quarter reported in August.&nbsp;The company, which manufactures 95% of its shoes in Germany, has also sought to make its factories and logistics more efficient and reduce production costs to manage the fallout from the tariffs.&nbsp;On Thursday, the company said it had acquired a production facility near Dresden, Germany, for 18 million euros to boost its manufacturing capacity. The site is expected to be operational by the end of fiscal 2027.&nbsp;Birkenstock maintained its target of 31.3% to 31.8% growth in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year ending September 30.($1 = 0.8514 euros)

Birkenstock footwear, Birkenstock sandals, Birkenstock stocks

The company expects sales of at least 2.09 billion euros ($2.45 billion), implying growth of about 17.5% at constant currency rates over last year.

Birkenstock lifts sales outlook on demand boost for clogs and shoes

FRANKFURT: Euro zone economic growth continues to hold up as Germany&#39;s budget largesse props up sentiment and offsets turmoil in France, but more weakness may be ahead as US tariffs start to exert their full effect, key data showed on Tuesday.&nbsp;The euro zone has been expanding quicker than economists had expected this year, sparking debate over whether the bloc is simply more resilient than thought and how much damage French political turmoil will do across the 20 nations.&nbsp;Seemingly adding to the resilience case, the HCOB flash composite Purchasing Managers&rsquo; Index (PMI) edged up to 51.2 in September from 51 in August for its ninth consecutive month of growth.&nbsp;Germany carries Euro zoneBut the underlying trend was mixed and suggested that the industrial rebound may be fizzling out, leaving services to support growth.&nbsp;&quot;The details are not as rosy as the headline index suggests,&quot; Oxford Economics&#39; Riccardo Marcelli Fabiani said.&nbsp;&quot;Sentiment was soft and incoming orders from abroad continued worsening, pointing to no strong rebound happening after the drop in exports following the introduction of tariffs,&quot; he said.&nbsp;Another concern is that the steady improvement in PMI figures is solely attributable to Germany, where fiscal expansion is likely to drive growth for years to come.&nbsp;&quot;France stands out negatively,&quot; ING economist Bert Colijn said. &quot;With heightened political uncertainty, the French economy appears to be mirroring this sense of instability.&quot;&nbsp;Germany&#39;s PMI bounced to a 16-month high of 52.4, beating poll expectations for a modest lift to 50.6 from 50.5. But in France, activity contracted for a 13th month and at the fastest pace since April, with its PMI falling to 48.4.&nbsp;Echoing the euro zone number, British firms also reported a loss of momentum and confidence as the PMI slowed to 51 in September from 53.5 in August.&nbsp;Full brunt of Trump tariffs still to comeThe euro zone is still to take the full hit from US tariffs, which will slow its already modest growth rate even further, the Organization for Economic Cooperation and Development said in a separate report.&nbsp;&quot;The full effects of tariff increases have yet to be felt &mdash; with many changes being phased in over time and companies initially absorbing some tariff increases through margins &mdash;&nbsp;but are becoming increasingly visible,&quot; the OECD added.&nbsp;This will slow euro zone growth to just 1.0% next year from 1.2% this year, as increased trade frictions and geopolitical uncertainty negate the boost from lower ECB interest rates and Germany&#39;s fiscal expansion.&nbsp;Growth in the UK is also expected to drop to 1.0% next year from 1.4% in 2025 on a tighter fiscal stance, higher trade costs and greater uncertainty.&nbsp;&quot;Fiscal expansion is expected to boost economic activity in Germany, but expected consolidation in both France and Italy will dampen growth,&quot; the OECD added.&nbsp;However, the OECD confirmed the ECB&#39;s view that inflation will now hold at or just below the 2% target, which will keep alive hopes for more policy easing, especially as consumption growth softens.

The OECD says the full impact of the tariff slowdown is yet to be felt. It predicts a broader growth slowdown, with French unrest likely to weigh on the economy, while increased German spending may offer some support.

Europe to succumb to slowdown driven by tariffs, French turmoil: Reports

KUALA LUMPUR: A large but loose Asian trade bloc that includes China, the Regional Comprehensive Economic Partnership, will consider adding new members and finding ways to boost trade when its leaders meet next month, the Malaysian hosts said on Monday.&nbsp;Malaysia plans to hold a summit of the RCEP, the world&#39;s largest trade bloc, when it hosts the annual gathering of the Association of Southeast Asian Nations in Kuala Lumpur.&nbsp;Leaders of the RCEP - which includes all 10 ASEAN members as well as China, Japan, South Korea, Australia and New Zealand - have not held an official meeting since November 2020, when they signed a trade deal aimed at lowering tariffs, boosting investment and allowing freer movement of goods.&nbsp;The RCEP is seen as a potential buffer against tariffs imposed by US President Donald Trump&#39;s administration, though its provisions are considered weaker than some other regional trade deals due to competing interests among members.&nbsp;The October meeting will let members suggest improvements to the RCEP trade deal and consider requests from some countries to join, Malaysia&#39;s trade minister Tengku Zafrul Aziz told Reuters in an interview ahead of a meeting of ASEAN economic ministers this week.&nbsp;He declined to provide details on potential changes or name countries that have applied to join, citing confidentiality. But he said he was optimistic the RCEP can be &quot;more relevant and current&quot;.&nbsp;Malaysian minister: Meeting will not be &lsquo;hijacked by China&rsquo;China has called on countries in the region to embrace multilateral frameworks such as the RCEP to counter the impact of the US tariffs.&nbsp;Tengku Zafrul said he was not worried about the meeting being &quot;hijacked&quot; by China, as ASEAN and RCEP members agreed on multilateralism and were committed towards engaging with others, including the United States.&nbsp;&quot;To be fair to Malaysia and ASEAN member states, and even other RCEP members, they have said the same thing. I mean, Korea, Japan, New Zealand, Australia and all have stated their views on multilateralism,&quot; he said.&nbsp;&quot;So, whether China will hijack the agenda: I don&#39;t think so, because there&#39;s nothing new in our belief about that principle.&quot;&nbsp;Trump&#39;s tariff drive has seen levies of between 10% and 40% placed on goods from Asian countries, with the majority of major ASEAN economies levelled with a rate of 19%.&nbsp;The US tariffs are expected to be a key point of discussion during the ASEAN ministers&#39; gathering this week, which will be attended by US Trade Representative Jamieson Greer.&nbsp;Tengku Zafrul said the ASEAN meetings will let the bloc discuss key issues with both the United States and China, the region&#39;s two largest trade partners.

Malaysia plans to hold a summit of the RCEP, the world's largest trade bloc, when it hosts the annual gathering of the Association of Southeast Asian Nations in Kuala Lumpur.


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