KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
President-elect Donald Trump has warned the European Union (EU) of impending tariffs if its member states fail to increase their imports of American oil and gas, marking another potential escalation in transatlantic trade tensions.
Key Developments
Trump's Warning on Truth Social
- Trump stated, “I told the European Union that they must make up their tremendous deficit with the United States by the large scale purchase of our oil and gas. Otherwise, it is TARIFFS all the way!!!”
- The US, as the largest global producer of crude oil and exporter of liquefied natural gas (LNG), aims to strengthen its energy trade dominance.
EU's Preparations for Trade Tensions
- The EU is bracing for potential trade wars under Trump’s renewed "America First" agenda, recalling the 2017 steel and aluminum tariffs imposed during his first term.
- German Foreign Minister Annalena Baerbock emphasized a united European stance: “If the new US administration pursues an ‘America First’ policy, then our response will be ‘Europe united.’”
LNG Trade Dynamics
- The EU is already the largest importer of American LNG, with over 50% of US deliveries heading to Europe last year.
- European Commission President Ursula von der Leyen suggested replacing Russian LNG with US imports:
- “Why not replace it with American LNG, which is cheaper and brings down our energy prices?”
- Despite sanctions, Russian pipeline gas and LNG continue to play a significant role in Europe’s energy supply.
EU's Countermeasures
- The bloc has fortified its trade defenses with:
- Anti-coercion instruments to impose punitive tariffs or restrictions.
- Foreign subsidies regulation to limit foreign companies receiving unfair state aid from participating in EU tenders and mergers.
- These measures aim to protect the EU from politically motivated trade restrictions.
Broader Implications
- Trump's grievances extend beyond trade to defense spending and NATO contributions, with a history of criticizing Brussels and threatening tariffs against nations with US trade deficits.
- The US remains a major crude oil exporter to Europe, Canada, and Asia, leveraging its position to push for favorable trade agreements.
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