Newscasts - Asia Markets Briefing: EU slaps tariffs on Chinese EVs, risking Beijing backlash

Korea Zinc

30/10/2024 09:00

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Source: 'Reuters - Business videos'

Description: The European Union has decided to increase tariffs on
Chinese-built electric vehicles to as much as 45.3%, something that may prompt
retaliation from Beijing. The Commission said tariffs are required to counter
'unfair subsidies' as well as land, batteries and raw materials at below
market prices.
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Video Transcript:

EU slaps tariffs on Chinese EVs risking Beijing backlash. Welcome to Asia
Markets Briefing. I'm Ludovica Brignola. The European Union has decided to
increase tariffs on Chinese-built electric vehicles to as much as 45.3%
something that may prompt retaliation from Beijing. The Commission said
tariffs are required to counter “unfair subsidies” as well as land
batteries and raw materials supplied at below market prices. Reuters reported
that China is considering approving next week over CNY10 trillion. That's $1.4
trillion in extra debt to stimulate its economy. The fiscal package is also
expected to be increased if Donald Trump wins the upcoming US Presidential
Election. But the potential package failed to impress the markets so far, as
analysts say its size is in line with expectations. As a consequence of all
this, Chinese EV stocks were plunging, including NEO, which fell about 6%, as
well as Geely and Li Auto. The broader Shanghai Composite and the Hang Seng
were also in the red ahead of the US elections next week. The Nikkei, on the
other hand, was up and nearly 1%. Well, the Bank of Japan kicked off its
two-day policy meeting on Wednesday, days after the ruling coalition's loss in
the weekend, something that fueled political uncertainty. Tomorrow, the bank
is expected to keep interest rates steady at a 0.25%. The BOJ ended negative
interest rates in March and raised this short-term policy target to 0.25% in
July. Toyota Motor said its worldwide production fell for an eighth straight
month in September. That's as both sales and output declined in its two
biggest markets, the United States and China. And shares in Korea Zinc that's
the world's top zinc refiner fell as much as 29.9% to their daily lower limit
on Wednesday. That's after the company said it planned to issue new stock
worth about $1.8 billion, just two days after it bought back shares at a
higher price. Markets will focus on Chinese manufacturing PMI due out on
Thursday, expected to strengthen slightly. China’s recent stimulus
measures to revive the economy are likely to set the tone for third quarter
earnings at the likes of Agricultural Bank of China and Bank of China. Also
coming up Q3 results from ICBC Bank. According to analysts, Q3 profits at ICBC
are expected to fall around 4% to just under $12.8 billion. And in Japan,
Fujitsu is also set to report. And that's it from your Asia Markets Briefing