Ata mārie and welcome to your Monday recap of global business and political news from the weekend.
First up, Canadian Prime Minister Mark Carney and US President Donald Trump are expected to talk over the coming days after the two countries failed to reach a trade tariff deal by the August 1 deadline last week, Bloomberg reported.
The Trump administration raised the tariff rate on some Canadian imports to 35% from 25%. Carney has described the talks with the US as difficult, but officials said recent talks had been “informative, constructive, and cordial”, and reiterated mutual benefits for both economies.
Canadian negotiators were now prioritising getting a good deal rather than a rushed agreement.
Trump's new tariffs on more than 90 countries were met with a range of reactions, including shock and relief from business leaders around the world, the BBC reported.
In Switzerland, the 39% tariff was seen as the worst-case scenario.
Canadian Prime Minister Mark Carney.
Berkshire Hathaway reported a decline in June-quarter operating earnings as it warned of negative implications from the tariffs, CNBC reported.
Berkshire’s operating profit fell 4% from last year to US$11.2 billion. The results were affected by a decline in insurance underwriting. The conglomerate once again said the tariffs had a potential impact on its various businesses.
“It is reasonably possible there could be adverse consequences on most, if not all, of our operating businesses, as well as on our investments in equity securities, which could significantly affect our future results,” it said.
Trump’s decision to fire the country’s chief labour statistician after weak jobs growth was criticised as an unfounded move that could undermine confidence in data and the economy.
Trump fired Erika McEntarfer just hours after labour market data showed weak employment growth based on steep downward revisions for May and June, Bloomberg reported.
“We need accurate Jobs Numbers. I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY. She will be replaced with someone much more competent and qualified,” Trump said on social media.
Meanwhile, Trump ordered the repositioning of two US nuclear submarines to “appropriate regions” relative to Russia, following frustration over stalled peace talks to end the war in Ukraine, Al Jazeera reported.
Trump exchanged heated words with Dmitry Medvedev, Russia’s military leader and former president. He claimed Medvedev made threatening and “highly provocative” comments. “I have ordered two Nuclear Submarines to be positioned in the appropriate regions, just in case these foolish and inflammatory statements are more than just that,” Trump wrote.
Oil producer group Opec+ will sharply increase production from September and end supply cuts to boost market share, amid concerns over supply disruptions linked to Russia, Bloomberg and CNBC reported.
Saudi Arabia and its partners agreed to add 547,000 barrels a day next month. That included an extra allowance by the United Arab Emirates.
The eight countries are scheduled to meet again next month to possibly consider reinstating another layer of output cuts totalling about 1.65 million barrels a day.
Trade Minister Todd McClay.
Finally, Trade and Investment Minister Todd McClay is in Thailand and Indonesia this week to strengthen New Zealand’s economic ties in Southeast Asia.
In Jakarta, discussions will focus on doubling two-way trade by 2029, supporting Indonesia’s participation in the OECD accession process, and further engagement on its interest in joining CPTPP.
In Thailand, McClay will meet with New Zealand businesses operating in the region and companies importing premium New Zealand goods.
In the year to March, New Zealand exported more than $1.6b to Thailand and $1.97b to Indonesia.
