Donald Trump said tariffs on Mexican and Canadian goods will go ahead unless the flow of drugs into the US is stopped or significantly reduced. Reuters
Donald Trump said tariffs on Mexican and Canadian goods will go ahead unless the flow of drugs into the US is stopped or significantly reduced. Reuters
Donald Trump said tariffs on Mexican and Canadian goods will go ahead unless the flow of drugs into the US is stopped or significantly reduced. Reuters
Oil prices fell on Friday and recorded their first monthly decline since November, with US tariff threats exacerbating worries about sluggish Chinese crude demand.
Brent, the benchmark for two thirds of the world’s oil, settled 1.16 per cent lower at $73.18. West Texas Intermediate, the gauge that tracks US crude, closed down 0.84 per cent at $69.76 a barrel.
“US President Donald Trump’s aggressive moves on trade [are] stoking investor apprehensions at a time when traders are already concerned about lacklustre consumption in China,” MUFG said in a research note on Thursday.
On Thursday, Mr Trump said that his planned 25 per cent tariffs on Mexican and Canadian goods will go into effect on March 4, alongside an additional 10 per cent duty on Chinese imports.
The tariffs will be implemented unless the flow of drugs, particularly fentanyl, into the US is stopped or significantly reduced, he said in a Truth Social post.
The US President also reaffirmed that the “April Second Reciprocal Tariff date will remain in full force and effect”.
Canada and Mexico are two of the largest crude suppliers to the US market. Oil exports from Canada are to have a lower tariff of 10 per cent.
This month, China retaliated against US tariffs by imposing a 15 per cent levy on US coal and liquefied natural gas (LNG), and 10 per cent on US crude imports.
Investors are concerned that a renewed trade war between the US and China will create uncertainty and risk dampening global trade, which, in turn, could negatively impact demand for crude oil.
Mr Trump initiated a trade war with China in 2018 during his first stint as president. By the end of 2019, the US had placed tariffs on about $350 billion worth of Chinese goods, and China had responded with tariffs on about $100 billion of US exports.
The “Phase One” trade deal, signed by both countries in January 2020 to de-escalate their trade war, required China to increase its purchases of US goods and services by $200 billion over the following two years.
“Trump-induced tariffs and/or geopolitical uncertainty, are tangible,” MUFG said. “With such an oversupplied outlook, oil prices should fall to drive a rebalancing. However, as long as supply disruption risks keep prices supported in 2025, the surplus will remain unresolved,” the Japanese lender said.
The International Energy Agency expects global oil supply to rise by 1.6 million bpd to 104.5 million bpd this year, while global oil demand growth is projected to average 1.1 million bpd.
“Despite many expecting the oil market to flip into a surplus, the structure of the crude futures curve is still downward sloped,” said Giovanni Staunovo, strategist at UBS. “This suggests the oil market remains tight, with Opec+ aiming to keep the market in balance,” he said in a research note earlier this week.
Opec+, the alliance of oil producing countries, which includes Russia, has withheld 5.86 million bpd of supply from the market, including voluntary output cuts of 2.2 million bpd that will be gradually eased, starting in April.
Opec+ is considering whether to proceed with its planned oil output increase in April or maintain current levels, as its members grapple with assessing the global supply outlook amid new US sanctions on Venezuela, Iran, and Russia, Reuters reported on Thursday, citing sources.
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Countries offering golden visas
UK Innovator Founder Visa is aimed at those who can demonstrate relevant experience in business and sufficient investment funds to set up and scale up a new business in the UK. It offers permanent residence after three years.
Germany Investing or establishing a business in Germany offers you a residence permit, which eventually leads to citizenship. The investment must meet an economic need and you have to have lived in Germany for five years to become a citizen.
Italy The scheme is designed for foreign investors committed to making a significant contribution to the economy. Requires a minimum investment of €250,000 which can rise to €2 million.
Switzerland Residence Programme offers residence to applicants and their families through economic contributions. The applicant must agree to pay an annual lump sum in tax.
Canada Start-Up Visa Programme allows foreign entrepreneurs the opportunity to create a business in Canada and apply for permanent residence.
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The Melbourne Mercer Global Pension Index
The Melbourne Mercer Global Pension Index
Mazen Abukhater, principal and actuary at global consultancy Mercer, Middle East, says the company’s Melbourne Mercer Global Pension Index - which benchmarks 34 pension schemes across the globe to assess their adequacy, sustainability and integrity - included Saudi Arabia for the first time this year to offer a glimpse into the region.
The index highlighted fundamental issues for all 34 countries, such as a rapid ageing population and a low growth / low interest environment putting pressure on expected returns. It also highlighted the increasing popularity around the world of defined contribution schemes.
“Average life expectancy has been increasing by about three years every 10 years. Someone born in 1947 is expected to live until 85 whereas someone born in 2007 is expected to live to 103,” Mr Abukhater told the Mena Pensions Conference.
“Are our systems equipped to handle these kind of life expectancies in the future? If so many people retire at 60, they are going to be in retirement for 43 years – so we need to adapt our retirement age to our changing life expectancy.”
Saudi Arabia came in the middle of Mercer’s ranking with a score of 58.9. The report said the country's index could be raised by improving the minimum level of support for the poorest aged individuals and increasing the labour force participation rate at older ages as life expectancies rise.
Mr Abukhater said the challenges of an ageing population, increased life expectancy and some individuals relying solely on their government for financial support in their retirement years will put the system under strain.
“To relieve that pressure, governments need to consider whether it is time to switch to a defined contribution scheme so that individuals can supplement their own future with the help of government support,” he said.
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11 What time: Each day’s play is scheduled to start at 2pm UAE time. TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
