27/03/2025

BIZ & FINANCE THURSDAY | MAR 27, 2025

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Canada freezes rebate payments to Tesla OTTAWA: Canada has frozen all rebate payments for Tesla and banned the electric vehicle maker from future EV rebate programmes, Transport Minister Chrystia Freeland said on Tuesday. No rebate payments will be made until each claim is individually investigated and determined to be valid, Freeland said in an e-mailed statement shared by her office. Freeland also directed the transport department to revise eligibility requirements for future iZEV programs to ensure that Tesla vehicles are not eligible as long as the “illegitimate and illegal US tariffs are imposed against Canada”. US President Donald Trump has imposed a slew of new tariffs, with the bulk due in early April, in the form of steep 25% taxes on most goods from Canada and Mexico. Trump on Monday said automobile tariffs are coming soon, although not all of his threatened levies would be enforced on April 2. Canada has frozen C$43 million (RM133 million) of rebate payments for Tesla. The order to stop the payments came before Canadian Prime Minister Mark Carney announced a general election on April 28, according to the Toronto Star , which reported the news earlier. The Toronto Star reported earlier this month that Tesla filed an extraordinary number of EV rebate claims in the final days of the programme in January, with a single Tesla dealership in Quebec City claiming nearly C$20 million in public subsidies by documenting more than 4,000 electric vehicle sales over a single weekend. – Reuters BERLIN: Porsche SE, Volkswagen’s largest shareholder, plans to expand its investments and diversify its holdings, it said yesterday, after reporting a €20 billion (RM95 billion) after-tax loss because of impairments on its holding of Europe’s top carmaker. The board proposed a lower dividend of €1.91 per preference share, down from €2.56 last year, attributed to the lower dividend inflow from Volkswagen, which reported a 15% drop in operating profits last year. “We are continuously screening promising investment opportunities, in both the portfolio segment as well as for potential new core investments,” Lutz Meschke, board of management member responsible for investment management and former chief financial officer of Porsche AG, said. “We also have the financial capacity to make larger investments.” The holding company, which is controlled by the Porsche and Piech families, said that the programmes underway at Volkswagen and Porsche to cut costs had significant potential to boost profitability but that the companies needed to focus on “rigorous implementation”. German tabloid Bild reported earlier this month that the Porsche and Piech families which jointly control Porsche SE were considering divesting shares in Volkswagen to free up capital for other investments. – Reuters Porsche to expand, diversify investments

An open pit gold mine of Goldcorp in Penasquito, Mexico. – REUTERSPIC

Gold rises as US reciprocal tariff plans fuel concerns

Non-yielding gold thrives in a low interest-rate environment. “We are forecasting US$3,200 by September,” Kumari said, adding that any hawkish comment from the Fed could be a factor slowing gold’s rally. Elsewhere, the US on Tuesday reached deals with Ukraine and Russia to pause their attacks at sea and against energy targets, with Washington agreeing to push to lift some sanctions against Moscow. “Intermediate resistance for gold stands at US$3,038, with next resistances coming in at US$3,058 and US$3,076/$3,090,” said Kelvin Wong, senior market analyst for Asia Pacific at OANDA. Spot silver was steady at US$33.75 an ounce and platinum lost 0.2% to US$975.10. Palladium slipped 0.4% to US$952.21. – Reuters

that could support prices,” ANZ commodity strategist Soni Kumari said. Focus is on potential reciprocal tariffs that the US administration might adopt on April 2. Trump’s tariff policies are likely to be inflationary, potentially slowing economic growth and intensifying trade tensions. US consumer confidence plunged to a more than four-year low in March, with households fearing a recession and higher inflation triggered by tariffs. Gold, a hedge against geopolitical and economic instabilities, has risen over 15% so far this year, scaling an all-time peak of US$3,057.21 on March 20. Several Federal Reserve officials are due to speak later this week. Markets also await US personal consumption expenditures data tomorrow for clues on monetary policy.

NEW YORK: Gold prices edged higher yesterday, as market participants braced for US President Donald Trump’s sweeping reciprocal tariff plans, which they fear would fuel inflation and hinder economic growth. Spot gold rose 0.2% to US$3,026.38 an ounce, as of 0721 GMT (3.21pm in Malaysia). US gold futures gained 0.1% to US$3,030.10. “There are real concerns around US economic growth as well as inflation. The US is likely to face a stagflationary scenario, and o American consumer confidence plunges to over four-year low in March

Economic inequality increasing in Sweden: Study STOCKHOLM: One in three single parents in Sweden is unable to provide enough food for their family, with rising economic inequality hitting children hardest, a survey published yesterday showed. A survey conducted by Verian between Jan 30 and Feb 21 found that 29% of single-parent households had “difficulty” feeding their families enough – an increase of nine percentage points from 2024. consequences, the organisations said. Children know exactly when their parents’ salaries and social benefits are paid, for example, and avoid mentioning activities or excursions that cost money.

In addition, many 16- or 17-year-olds who have just landed their first summer jobs are unable to pay for public transport to get to their workplace. “Public transport is essential for these families, they can’t afford to get to after-school activities or see their friends,” said Henell. “We give them transportation cards so they can have their first salary.” To stem the inequalities, the four organisations called on the Swedish government to increase family allowance payments and index them to inflation, and introduce free leisure activities and public transport for all children. – AFP

The study was commissioned by Majblomman, the Red Cross and Radda Barnen, the Swedish branch of Save the Children, along with the tenants’ association Hyresgastforeningen. It questioned 1,112 single parents who earned less than 30,000 kronor (RM13,300) a month, as well as couples with children who together earned less than 43,000 kronor a month. “The situation is worsening for people who live on the margins,“ said Swedish Red Cross secretary-general Ulrika Modeer. Children are most affected by the economic inequalities and are burdened too quickly with the

“We see that single moms and dads with children who don’t have major incomes have a really, really poor situation in Sweden right now,” Ase Henell, secretary-general of the aid association Majblomman, which fights child poverty, told AFP. “They have to choose between food and clothes, and the kids can’t go to football training or go to music lessons. “They lack a social context,” she said. Sweden has seen several years of high inflation, especially food prices, with many households also burdened with hefty mortgage payments after years of high interest rates.