FRANKFURT AM MAIN: US President Donald Trump’s tariffs on steel and aluminum risk escalating into a threat to the international trading system, a highly-regarded group of German economists said Wednesday.
“An escalation of the trade conflict would damage international value chains and in the medium term threaten the international rules-based trading system,” warned the German Council of Economic Experts — known as the “Wise Men” although one member is a woman.
The economists highlighted other dangers in a regular report, including a disorderly British departure from the European Union, a tricky Italian election outcome dominated by populists, “geopolitical risks” from war and conflict and a financial crisis triggering a sudden slowdown in the Chinese economy.
But “frictionlessly functioning world trade is of central importance for the continuation of the global upturn,” they said.
That made the threat to trade from Washington the biggest factor in their judgment that “risks to economic development have recently increased.”
Trump has ordered border taxes of 25 percent on steel imports and 10 percent on aluminum, provoking promises of retaliation from partners like the European Union — which Trump in turn vowed to meet with further levies of his own.
EU Trade Commissioner Cecilia Malmstroem and representatives from national capitals have rushed to Washington to try and turn the president aside from a transatlantic trade showdown.
So far, they have little to show for their efforts.
Other Trump policies met with a warmer response from the German economists, who noted that massive tax cuts and spending increases could “strengthen growth momentum in the US more than predicted” — boosting the economies of Washington’s trading partners.
For Germany, the experts upped their economic growth forecast for 2018 slightly, to 2.3 percent, while their first prediction for 2019 called for a slight slowdown, to 1.8 percent.
Easy-money policy from the European Central Bank and planned government spending increases under Chancellor Angela Merkel’s fourth government are pushing Europe’s largest economy to grow at a faster pace than it can maintain for the long term, the economists said.
Trump trade war biggest risk to world economy, German economists say
Trump trade war biggest risk to world economy, German economists say
Closing Bell: Saudi main index extends gains as market opens wider to foreign investment
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Monday, gaining 153.61 points, or 1.38 percent, to close at 11,321.09.
The total trading turnover of the benchmark index was SR5.85 billion ($1.56 billion), as 207 of the listed stocks advanced, while 55 retreated.
The MSCI Tadawul Index increased, up 21.20 points or 1.41 percent, to close at 1,524.18.
The Kingdom’s parallel market Nomu gained 278.13 points, or 1.17 percent, to close at 24,013.03. This comes as 43 of the listed stocks advanced, while 29 retreated.
The best-performing stock was Saudi Pharmaceutical Industries and Medical Appliances Corp., with its share price surging by 7.26 percent to SR28.94.
Other top performers included Rasan Information Technology Co., which saw its share price rise by 6.51 percent to SR144, and Knowledge Economic City, which saw a 6.25 percent increase to SR13.09.
On the downside, the worst performer of the day was Najran Cement Co., whose share price fell by 2.11 percent to SR6.49.
Almasane Alkobra Mining Co. and Saudi Cable Co. also saw declines, with their shares dropping by 2 percent and 1.88 percent to SR103.10 and SR166.80, respectively.
On the announcement front, Riyad Bank has announced its annual financial results for 2025, with the total income from special commission of financing reaching SR24.1 billion, while net income from special commission of financing amounted to SR12 billion.
In a statement on Tadawul, the bank said: “Net income increased by 11.7 percent mainly due to an increase in total operating income and a decrease in total operating expenses.”
The bank further noted that the rise in total operating income was primarily driven by increased revenue from fees and commissions, trading activities, special commissions, gains on non-trading investments, and other operating sources. This growth was partially tempered by declines in exchange and dividend income.
“Net provision of expected credit losses and other losses decreased by 15.8 percent due to a decrease in impairment charge of credit losses and impairment charge for other financial assets, partially offset by an increase in impairment charge for investments,” it added.
RIBL’s share price closed at SR18.18 on the main market, marking a 1.43 percent increase.
