KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
The UK government is evaluating its response after the European Union imposed provisional tariffs on electric vehicles (EVs) imported from China. Business Secretary Jonathan Reynolds is actively engaging with industry stakeholders to determine the best course of action, according to the Department for Business and Trade.
Key Points:
- Concerns Over EV Imports: The UK is worried about the impact of Chinese EV imports on its domestic market. Business Secretary Reynolds is holding discussions with EU trade commissioner Valdis Dombrovskis following the EU's decision to impose tariffs on Chinese EVs.
- Considerations for the UK Economy: Any UK response will need to consider the country's auto sector exports and be tailored to fit the UK’s economic needs.
Global Context:
- EU and US Actions: The EU's tariffs follow an investigation into alleged unfair subsidies to Chinese EV makers. The US has also announced plans for a 102.5% levy on Chinese EV imports, while Canada is considering similar measures.
- China's EV Push: Chinese manufacturers, such as state-owned SAIC Motor Corp. (makers of MG cars) and BYD Co., are increasingly targeting the European market due to domestic overcapacity and the attractiveness of the European market.
UK's Auto Industry:
- Balancing Act for the UK Government: The new Labour government aims to phase out new combustion-engine cars by 2030. The challenge is to protect the local auto industry, which produced over a million cars last year, while providing consumers with affordable EV options.
- MG's Significance: MG, a brand owned by SAIC Motor Corp., considers the UK its most important European market. The electric MG4 hatchback was the second-best selling EV in the UK last year, following Tesla's Model Y.
Future Negotiations:
- Potential for Retaliation: Beijing has threatened retaliation against the EU's tariffs, but both sides have indicated a willingness to negotiate before the tariffs take full effect in November.
The UK government will continue to monitor the situation closely and engage with stakeholders to determine the best path forward, balancing the needs of the domestic auto industry with the benefits of competitively priced electric vehicles for consumers.
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