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| Trump plans $11bn tariffs aimed at EU's aircraft, cheese and wine – business live | Trump plans $11bn tariffs aimed at EU's aircraft, cheese and wine – business live |
| (32 minutes later) | |
| If you have just shy of eight minutes free, Carlos Ghosn’s pre-recorded video (see 08:06) is definitely worth a watch for an insight into one of the most dramatic corporate bust-ups of recent times. | |
| Ghosn’s lawyer has said that the video was edited to remove the names of individuals, according to Agence France Presse, but he has not pulled many other punches. He had intended to give the message in person at a press conference, but was rearrested before being able to appear. | |
| The former Nissan boss accused unnamed former colleagues of plotting to overthrow him to prevent the Japanese carmaker from losing control in its alliance with Renault. | |
| But an important – and geopolitically interesting – point from analysts at Deutsche Bank’s macro strategists, led by Jim Reid: tariffs will only be implemented after the World Trade Organization (WTO) gives a final ruling on the EU’s subsidies this summer. | |
| Reid, and his colleagues Craig Nicol and Quinn Brody, wrote: | |
| The Trump administration hasn’t always trusted the WTO on these matters so its interesting that they are here. Proposed items in the list include new passenger helicopters, various cheeses and wines, ski-suits and certain motorcycles. | |
| This news might also remind investors that the US report on the national security risk of auto imports was delivered back in February without any official response yet. Having said that the US first complained to the WTO about Airbus subsidies 15 years ago so this has been a long-running dispute. | |
| Relying on the WTO at this point seems like a strange move, given Trump’s almost systematic dismantling of its legitimacy and his obvious distaste for the trading world order it presides over. | |
| But given that the US has had some genuine success with the WTO’s ruling on the EU’s Airbus subsidies, perhaps they believe that it makes sense to pursue the traditional rules-based approach – even as they try to undermine the WTO fundamentally. | |
| As a side note it’s worth noting the timeframe over which these disputes play out as well: trade negotiations are hard. | |
| Let’s get some reaction to the possibility of $11bn in US tariffs on EU goods. | |
| Neil Wilson, chief market analyst at Markets.com, said the tariff threat looks like a relatively contained problem, but added that there is a “risk of contagion if the EU decides to respond in kind” – as well as doing nothing for business confidence in the EU. | |
| We are now back to where we were before the Juncker visit to Washington – there is a real risk of a tit-for-tat trade battle between the EU and US, and therefore ought to weigh on risk. | |
| Meanwhile, we are still waiting for a breakthrough between the US and China – despite warm words, so far nothing has materialised. | |
| The decision does not augur well for EU-US trade, with the looming threat of tariffs on cars – which would represent a big blow to the relations and likely to the world economy. | |
| Lee Hardman and Fritz Louw, currency analysts at MUFG, said a move back towards an EU-US trade war could damage the prospects for the euro. | |
| Downside risks for the euro from escalating trade tensions would heighten more significantly if the Trump administration also decides to raise tariffs on imports of autos. | |
| May will have to persuade her EU counterparts that she can secure actual progress, whether that be a compromise with Labour or if she can somehow get her withdrawal deal through the Commons with another heave. | May will have to persuade her EU counterparts that she can secure actual progress, whether that be a compromise with Labour or if she can somehow get her withdrawal deal through the Commons with another heave. |
| Andrea Leadsom, the Brexiter leader of the house of commons, has just now said that getting the May/EU deal through parliament would be the best possible outcome – if the EU supports measures on the troublesome backstop, the insurance policy for the Irish border. | Andrea Leadsom, the Brexiter leader of the house of commons, has just now said that getting the May/EU deal through parliament would be the best possible outcome – if the EU supports measures on the troublesome backstop, the insurance policy for the Irish border. |
| You can read more Brexit detail here: | You can read more Brexit detail here: |
| May risks wrath of Tory Brexiters to plead with EU for more time | May risks wrath of Tory Brexiters to plead with EU for more time |
| With the flurry of early news, we’ve got three posts into the live blog without mentioning the “B” word. But Brexit is only three days away, unless something comes up. | With the flurry of early news, we’ve got three posts into the live blog without mentioning the “B” word. But Brexit is only three days away, unless something comes up. |
| The early signs, ahead of the crucial summit of European leaders tomorrow, suggest we could be in for a bumpy ride in the next few days. | The early signs, ahead of the crucial summit of European leaders tomorrow, suggest we could be in for a bumpy ride in the next few days. |
| Prime Minister Theresa May will go to Paris and Berlin to plead with Angela Merkel and Emmanuel Macron for a Brexit extension today, but France’s EU minister said that it will want the UK to give a good reason for a longer negotiation period. | Prime Minister Theresa May will go to Paris and Berlin to plead with Angela Merkel and Emmanuel Macron for a Brexit extension today, but France’s EU minister said that it will want the UK to give a good reason for a longer negotiation period. |
| Entering a meeting of EU ministers in Luxembourg today, France’s Amélie Montchalin said: “We want to understand what the UK needs this extension for.” | Entering a meeting of EU ministers in Luxembourg today, France’s Amélie Montchalin said: “We want to understand what the UK needs this extension for.” |
| Then come the questions of the conditions; what role the UK wants to play during this extension time, in what kind of decisions it wants to take part. | Then come the questions of the conditions; what role the UK wants to play during this extension time, in what kind of decisions it wants to take part. |
| Bruno Le Maire, France’s finance minister, earlier said that France needs a clear reason for any Brexit delay. | Bruno Le Maire, France’s finance minister, earlier said that France needs a clear reason for any Brexit delay. |
| Europe’s main stock markets have all fallen at the open as investors take into account the threat of $11bn in tariffs from the US. | Europe’s main stock markets have all fallen at the open as investors take into account the threat of $11bn in tariffs from the US. |
| London’s FTSE 100 is down by 0.2% in early trading, while Germany’s Dax and France’s Cac 40 both fell by 0.3% as markets opened. | London’s FTSE 100 is down by 0.2% in early trading, while Germany’s Dax and France’s Cac 40 both fell by 0.3% as markets opened. |
| Shares in Airbus, the Franco-German planemaker at the centre of the trade dispute, fell by 2.3%, making it the worst performer on the Cac 40 in early trade. | Shares in Airbus, the Franco-German planemaker at the centre of the trade dispute, fell by 2.3%, making it the worst performer on the Cac 40 in early trade. |
| Carlos Ghosn, the former Nissan boss, has blamed a “conspiracy” for his arrest and continued detention in Japan. | Carlos Ghosn, the former Nissan boss, has blamed a “conspiracy” for his arrest and continued detention in Japan. |
| Ghosn faces multiple charges from Japanese prosecutors, including underreporting his income to authorities. He has also been accused of ethical violations by Renault, the French carmaker whose alliance with Nissan has come under pressure since Ghosn’s arrest. | Ghosn faces multiple charges from Japanese prosecutors, including underreporting his income to authorities. He has also been accused of ethical violations by Renault, the French carmaker whose alliance with Nissan has come under pressure since Ghosn’s arrest. |
| In a video message recorded before his rearrest on fresh charges in Tokyo last week, Ghosn said he was the object of plotting by Nissan employees who thought that plans for a closer alliance with Renault would threaten the Japanese carmaker’s autonomy. He said: | In a video message recorded before his rearrest on fresh charges in Tokyo last week, Ghosn said he was the object of plotting by Nissan employees who thought that plans for a closer alliance with Renault would threaten the Japanese carmaker’s autonomy. He said: |
| This is a conspiracy. This is not about specific events, this is not about greed, this is not about dictatorship. This is about a plot, this is about conspiracy, this is about backstabbing. | This is a conspiracy. This is not about specific events, this is not about greed, this is not about dictatorship. This is about a plot, this is about conspiracy, this is about backstabbing. |
| Ghosn said that he has been unfairly painted as a dictator in an effort to discredit him. | Ghosn said that he has been unfairly painted as a dictator in an effort to discredit him. |
| I am innocent of all the charges that have been brought against me. I am also innocent of all the accusations that came around these charges, that are all biased, taken out of context, twisted in a way to paint a personage of greed and a personage of dictatorship. | I am innocent of all the charges that have been brought against me. I am also innocent of all the accusations that came around these charges, that are all biased, taken out of context, twisted in a way to paint a personage of greed and a personage of dictatorship. |
| However, Ghosn said his love for Nissan and Japan is “untainted” since his arrest in November. | However, Ghosn said his love for Nissan and Japan is “untainted” since his arrest in November. |
| I love Japan and I love Nissan. Nobody spends 20 years in a country, nobody works 20 years in the leadership of a company without love and without attachment. | I love Japan and I love Nissan. Nobody spends 20 years in a country, nobody works 20 years in the leadership of a company without love and without attachment. |
| Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. | Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. |
| Donald Trump’s White House has threatened to impose tariffs on EU goods worth $11.2bn, including French cheese, wine and aircraft, in a move which would significantly escalate trade tensions between the world’s biggest trading blocs. | Donald Trump’s White House has threatened to impose tariffs on EU goods worth $11.2bn, including French cheese, wine and aircraft, in a move which would significantly escalate trade tensions between the world’s biggest trading blocs. |
| Trump’s US trade representative, Robert Lighthizer, announced a list of goods which could be hit by tariffs late on Monday night in retaliation for EU subsidies to Airbus, the European aerospace manufacturer. | Trump’s US trade representative, Robert Lighthizer, announced a list of goods which could be hit by tariffs late on Monday night in retaliation for EU subsidies to Airbus, the European aerospace manufacturer. |
| The 14-page list has some fairly symbolic targets, with “French cheese”, Roquefort cheese, wine, champagne, olive oil and seafood such as oysters. | The 14-page list has some fairly symbolic targets, with “French cheese”, Roquefort cheese, wine, champagne, olive oil and seafood such as oysters. |
| Airbus and Boeing, the two major civil aerospace operators, have been at the centre of a long-running tit-for-tat battle over subsidies by their respective governments. Lighthizer said: | Airbus and Boeing, the two major civil aerospace operators, have been at the centre of a long-running tit-for-tat battle over subsidies by their respective governments. Lighthizer said: |
| This case has been in litigation for 14 years, and the time has come for action. The Administration is preparing to respond immediately when the WTO issues its finding on the value of US countermeasures”. | This case has been in litigation for 14 years, and the time has come for action. The Administration is preparing to respond immediately when the WTO issues its finding on the value of US countermeasures”. |
| Our ultimate goal is to reach an agreement with the EU to end all WTO-inconsistent subsidies to large civil aircraft. When the EU ends these harmful subsidies, the additional US duties imposed in response can be lifted. | Our ultimate goal is to reach an agreement with the EU to end all WTO-inconsistent subsidies to large civil aircraft. When the EU ends these harmful subsidies, the additional US duties imposed in response can be lifted. |
| In the City, Debenhams is likely to reject a last-ditch £200m offer from Sports Direct to take over the ailing department store chain. | In the City, Debenhams is likely to reject a last-ditch £200m offer from Sports Direct to take over the ailing department store chain. |
| The offer still comes with the condition that Sports Direct founder and all-round retail impresario Mike Ashley becomes Debenhams’ chief executive. On past form that is unlikely to fly with Debenhams’ board, meaning a pre-pack administration could still be in the offing. | The offer still comes with the condition that Sports Direct founder and all-round retail impresario Mike Ashley becomes Debenhams’ chief executive. On past form that is unlikely to fly with Debenhams’ board, meaning a pre-pack administration could still be in the offing. |
| You can read much more detail here: | You can read much more detail here: |
| Debenhams on brink despite Mike Ashley's last-minute offer | Debenhams on brink despite Mike Ashley's last-minute offer |
| And later we will hear from the International Monetary Fund on their latest thoughts on their outlook for the world economy. | And later we will hear from the International Monetary Fund on their latest thoughts on their outlook for the world economy. |
| The agenda | The agenda |
| 2pm BST: International Monetary Fund world economic outlook press conference | 2pm BST: International Monetary Fund world economic outlook press conference |
| 3pm BST: US JOLTs job openings | 3pm BST: US JOLTs job openings |