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Hello, this is the BBC News with Fiona MacDonald.
U.S. stocks have recovered some of their recent losses following White House assertions that it's making good progress on reaching a trade deal with China. All three main indices jumped more than 2%. The U.S. treasury secretary, Scott Bessent, is reported to have predicted a de-escalation in the trade war, describing the current situation as "unsustainable." Our business reporter is Jonathan Josephs. I understand he was speaking at a private event in Washington. He said "No one thinks the current status quo is sustainable." At the moment, the U.S. has announced tariffs of 145% on imports from China, and Beijing has retaliated with 125% tariffs for goods that go the other way round. Mr. Bessent went on to say the goal wasn't to decouple relations between the U.S. and China. But he said it would be "a slog," and no one in the administration believes that they have free and fair trade when it comes to China, so still a lot of complaints about unfair Chinese trade practices as the U.S. perceives them. Speaking in the White House after the markets closed, President Trump said he would be very nice in negotiations with Beijing and tariffs would go down. "You know various elements built it up to 145. No, it won't be anywhere near that high. Used to be 0. We were just destroyed. China was taking us for a ride and just not gonna have. It's not gonna happen." He said tariffs would fall if there was a deal, but not to zero. The International Monetary Fund says the risk of a U.S. recession has risen significantly, warning that tariffs imposed by Washington are fuelling global market uncertainty and slowing growth. The IMF's chief economist said the likelihood of a U.S. recession was now about 40%. The fund has also downgraded its growth outlook for nearly all countries to 2.8%. The Indian prime minister, Narendra Modi, has condemned the killing of domestic tourists in Indian-administered Kashmir, pledging that those responsible will not be spared. Gunmen attacked visitors near the resort town of Pahalgam. Reports suggest at least 27 people were killed. A little known Islamist separatist group says it was responsible. Yogita Limaye has more details. Locals say dozens of people have been rushed to nearby hospitals with gunshot wounds. There are videos on social media of people pleading for help. Pahalgam is one of the most popular tourist spots in Indian-administered Kashmir. It's known for its rolling meadows for its lush green valleys. This is peak domestic tourist season in India because its school holidays for most people in India and so there would have been lots and lots of people in the whole of Kashmir, but also lots of people visiting Pahalgam. World News from the BBC. The world's richest man, Elon Musk, says he's likely to scale back his work for the Trump administration next month to concentrate on his embattled electric car company, Tesla. Analysts have warned of brand damage due to Mr. Musk role at the Department of Government Efficiency, where he's overseen often controversial cuts to federal programs. Sales have weakened, especially in Europe, in part because of Mr. Musk's political activities. The U.S. health authorities says synthetic dyes in food products will be banned from the end of next year. The Food and Drug Administration said for 50 years, "American children have increasingly been living in a toxic soup of synthetic chemicals." The FDA commissioner, Marty Makary, cited studies linking such dyes to various health conditions in children, though food companies dispute this. "Cancer and diabetes in young people is going up at an alarming rate and nobody seems to know why. We have to turn our attention to underlying causes, such as chemicals and toxins that children are exposed to, not just more insulin and chemotherapy." The dyes are found in ultra-processed foods, including breakfast cereals, confectionery, snacks and beverages. President Zelenskyy has said Ukraine will not formally recognize Russia's annexation of Crimea as part of any deal to end the war. He said ceding the peninsula seized by Russia in 2014 would violate Ukraine's constitution. Mr. Zelenskyy's comments follow media reports that Washington could recognize Crimea as Russian to secure a cease-fire. Astronomers say they've spotted a rare rocky exoplanet, which is disintegrating as it orbits its host star. Scientists say the planet sheds material equivalent to the mass of Mt. Everest every 30 hours, leaving a trail of dust nine million kilometers long. BBC News. |