U.S. President Donald Trump said Britain should refuse to pay a $50 billion European Union divorce bill and “walk away” from Brexit talks if Brussels does not give ground.Trump told the Sunday Times newspaper ahead of a state visit to Britain, which starts on Monday, that Britain’s next leader should send arch-Brexiteer Nigel Farage to conduct EU talks. Once Britain leaves the EU, which Trump said must happen this year, then he would go “all out” to agree a trade deal.Trump said her successor should pursue a “no-deal” Brexit if he or she could not get more concessions from Europe by the end of October, when Britain is due to leave.“If they don’t get what they want, I would walk away,” he said. “If you don’t get a fair deal, you walk away.
Mexican and U.S. officials were preparing on Sunday for upcoming talks aimed at averting a major trade clash after U.S. President Donald Trump vowed to impose punitive tariffs on all Mexican goods in an intensifying dispute over migration.Mexican Economy Minister Graciela Marquez said on Sunday she would meet with U.S. Commerce Secretary Wilbur Ross in Washington on Monday, as the two governments begin holding talks to resolve the issue in the U.S. capital in the coming week.Trump says he will apply tariffs of 5% on Mexican goods on June 10 if Mexico does not halt the flow of illegal immigration, largely from Central America, across the U.S.-Mexican border.
The U.S. president lashed out on Twitter on Sunday morning, calling Mexico an “abuser of the United States, taking but never giving,” and repeating his tariff threats. He doubled down a few hours later.“Mexico is sending a big delegation to talk about the Border. Problem is, they’ve been ‘talking’ for 25 years,” Trump wrote. “We want action, not talk. They could solve the Border Crisis in one day if they so desired. Otherwise, our companies and jobs are coming back to the USA!”The tariffs will gradually rise to 25% if Mexico does not comply with Trump’s demands. That threatens major economic damage to Mexico, which sends about 80% of its exports to the United States.
China’s factory activity expanded at a steady but modest pace in May, a private survey showed, but analysts say front-loading of exports by firms to the United States to avoid higher tariffs masked underlying weakness in the economy.Manufacturers in the world’s second-biggest economy have come under severe pressure recently from an escalating trade dispute with the United States. An official gauge on factory activity last week showed conditions deteriorating as both domestic and external demand slackened. Monday’s Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) also showed only modest expansion at 50.2, unchanged from April, and above economists’ expectations of 50.0.
British manufacturing growth has weakened over the past couple of months as European companies decided to divert supply chains away from the world’s fifth-biggest economy while the Brexit crisis rumbled on, an industry survey showed on Monday.The Make UK manufacturing organization and accountants BDO said output and orders continued to grow but at a slower rate than in the early months of 2019. Britain’s economy picked up early this year, helped by the biggest rise in factory output in 20 years as companies raced to stockpile goods to avoid disruption to supply chains in the run-up to the original March 29 Brexit deadline.But the latest quarterly Make UK survey showed a weakening of hiring and investment intentions.
Japanese business investment rose in January-March, continuing the run of growth seen over the past two years although signs of slowing momentum have raised concerns about the strength of business activity amid mounting global economic risks.Ministry of Finance (MOF) data out on Monday showed capital expenditure grew 6.1% in January-March from the same period last year, led by chemicals, production machinery and leasing of goods. It followed a 5.7% gain in the previous quarter. Excluding software, capital expenditure rose 1.1% in January-March from the previous quarter on a seasonally-adjusted basis, up for a second straight quarter. But it slowed from the previous quarter’s 3.9% gain.Some economists said the data, which will be used to calculate revised gross domestic product figures due on June 10, suggested a downward revision to the first-quarter GDP growth.
Australian Prime Minister Scott Morrison said on Monday aluminium exporters are complying with the terms of a deal with the United States after the New York Times reported President Donald Trump had considered imposing tariffs on Canberra.The New York Times, citing unidentified sources, said Trump had been urged to impose tariffs on Australian steel and aluminium in response to an increase in exports of aluminium to the United States over the past year.Trump was persuaded to backtrack on the plan after advice that imposing tariffs on Australia would alienate a key ally in the Asia-Pacific region, the New York Times reported.Morrison said Australian exporters were doing nothing wrong.
“We have an arrangement with the United States and we are working within that arrangement,” Morrison told reporters in Honiara, the capital of the Solomon Islands.Trump imposed a 25% tariff on steel and a 10% tariff on aluminium imports in March. He agreed to an exemption for Canberra after lobbying by then Australian prime minister Malcolm Turnbull.Australia exports about A$500 million ($347.00 million) in steel and aluminium to the United States each year.
Gold prices rose on Monday to their highest in more than two months as heightened Sino-U.S. trade tensions and Washington's threat of tariffs on Mexico stoked worries of a global recession and drove investors to seek refuge in safe-haven bullion.Spot gold was up 0.5% at $1,312.37 per ounce at 0308 GMT, after touching its highest since March 27 at $1,312.60 U.S.
Oil prices fell more than 1% on Monday, extending losses of over 3% from Friday, when crude markets slipped to their biggest monthly losses in six months amid stalling demand and as trade wars fanned fears of a global economic slowdown.Front-month Brent crude futures were at $61.12 at 0444 GMT. That was 87 cents, or 1.4%, below Friday’s close.U.S. West Texas Intermediate (WTI) crude futures were at $52.91 per barrel, down 59 cents, or 1.1% from its last settlement.The drops followed price slumps of more than 3% on Friday, which made May the worst-performing month for crude futures since last November.