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1. US tariffs to take effect Tuesday
Tariffs imposed by the U.S. government are due to start seconds after midnight tonight, as governments and businesses in Canada, China and Mexico scramble to “avert the consequences of another tight deadline from [President Donald] Trump,” according to The New York Times. The newspaper added Trump's “game of brinkmanship with America’s three largest trading partners is creating intense uncertainty for business owners.”
The tariffs — which were announced immediately after Trump became president in late January — have been delayed from the original date of Feb. 4 but now seem likely to impose additional taxes of up to 25% on goods from Canada and Mexico and up to 35% on goods from China. Tariffs are paid by businesses importing goods, not by the exporters, but it means, evidently, that prices for U.S. consumers will go up. The New York Times quoted one source as saying that “for Canada and Mexico, most trade with the U.S. has faced zero tariff rates since the 1980s, with free trade agreements for automobiles even dating back to the 1960s.”
2. Asian manufacturing output boosted by China demand
Manufacturing output across Asia has increased thanks to healthier demand from China, according to The Wall Street Journal. Despite “Asian factory-activity data [showing] a broad uptick in growth momentum,” there are “some weak spots against a backdrop of escalating global trade tensions.” The Journal added that S&P Global’s manufacturing purchasing managers index for the ASEAN region increased to 51.5 in February, “the highest in over half a year, from 50.4 in January.” Anything below a level of 50 is a negative score.
The newspaper quoted Erica Tay, director of macro research at Singapore-based consultancy Maybank, who said the numbers do not explain “how much of the jump in new orders across Asia was due to front-loading ahead of potentially more severe U.S. trade policy.” China, India, South Korea, Taiwan and Vietnam are the Asian countries have the most potential exposure to U.S. tariffs.
3. Increases to train fares adds to UK cost-of-living pressures
On Sunday, the United Kingdom government announced a 4.6% increase in the price of rail travel. The BBC reports that despite officials calling the increase “the lowest absolute increase in fares for three years,” some critics say it will put more pressure on households already struggling with higher prices for such necessities as water and heating. Train travel is one of the most important means of transportation in the U.K.
In a report, the BBC said the “government says fares need to rise so it can invest in the rail system, but transport secretary Heidi Alexander acknowledged passengers were frustrated by delays and cancellations.”
Campaigners said the recent announcement that fuel taxes are being frozen sends a clear signal. One resident the BBC interviewed said for his family of four to visit relatives in Newcastle, train fares cost up to £400 ($503), while by car the cost would be £100. Train fares can be much lower but require purchase far in advance of the date of travel. The government has mentioned it intends to simplify the very complicated current fare system and also to re-nationalize train companies that it says are failing.
4. Singapore’s City Developments Limited nears its date in court
Singapore-based real estate investment trust City Developments Limited has released a new statement via the Singapore Exchange after its stock ceased trading on Feb. 25 due to a dispute between management and its board. Four board directors on the same date “filed an originating application before the High Court of Singapore” against six directors of the firm and the CEO, Sherman Kwek, the son of executive chairman Kwek Leng Beng, one of the originators of the court action.
Singapore's High Court issued an order for the “applicants and respondents to appear before the court registry to fix an early date for the hearing of the application, with permission.”
Also on Monday, CDL issued a request for lifting the halt in trading of its stock on the Singapore Exchange.
5. Firmdale Hotels claims $20 million negligence costs for COVID-19 losses
Owner-operator Firmdale Hotels, which has eight hotels in London and three in New York City, has filed a claim against broker Howden for £20 million over what Firmdale says is professional negligence during the COVID-19 pandemic. According to Insurance Post, Firmdale alleges that “oversights by the broker meant [Firmdale] found itself unable to claim for COVID-related business interruption losses in 2020.”
Last week, Firmdale sold a 20% stake to Swedish pharmaceutical entrepreneur Lennart Perlhagen. The Standard reported the transaction is valued at approximately £300 million ($380 million) and estimates Firmdale Holdings’ total value at approximately £1.5 billion.