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BIZ & FINANCE TUESDAY | MAY 27, 2025

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Trump delays EU tariffs until July 9

Pakistan to set aside excess power for AI data centres ISLAMABAD: Pakistan’s Finance Ministry said on Sunday it would allocate 2,000 megawatts of excess power for crypto mining and AI data centres. Generative AI requires colossal computing power to process information accumulated in gigantic databases and is driving massive global demand for energy. Although Pakistan has an installed capacity of about 45,000 megawatts, demand peaks at around 30,000 megawatts in summers, according to the Pakistan Institute of Development Economics, with the government liable to pay independent power providers for unused capacity. “Redirecting idle energy, especially from plants operating below capacity, allows Pakistan to convert a long-standing financial liability into a sustainable, revenue-generating opportunity,”the Finance Ministry said in a statement. The allocation was “the first phase of a national initiative to power bitcoin mining and artificial intelligence data centres”, it added. One 100 megawatt data centre can use as much power as 100,000 households, according to a report published last month by the International Energy Agency, which predicted data centres will consume about 3% of global energy by 2030. Despite the unused capacity, large parts of Pakistan are without a reliable power supply because of distribution constraints and decades of mismanagement of the sector. – AFP WiseTech agrees to buy E2open for US$2.1 billion SYDNEY: Australian software company WiseTech Global yesterday announced its biggest deal to date, buying out American cloud computing firm E2open for US$2.1 billion (RM8.9 billion) to broaden its product offerings. The deal, which will be fully funded through a new US$3 billion debt facility underwritten by a syndicate of nine lenders including Deutsche Bank and HSBC, marks a significant bet by WiseTech on expanding its global footprint. WiseTech, known for its flagship CargoWise platform, is offering US$3.30 per E2open share – a 24.5% premium to the US company’s last closing price. The acquisition would significantly enhance WiseTech’s software capabilities, adding solutions in supply chain planning, procurement, trade compliance, and channel management. The acquisition arrives at a pivotal moment for the Sydney-headquartered company. Billionaire co-founder and largest shareholder Richard White stepped down as chief executive in October 2024 after media reports alleged payments to a former sexual partner, prompting reputational scrutiny and a steep sell-off in shares. – Reuters

Talks have been stuck, with Washington demanding unilateral concessions from Brussels to open up to US business while the EU seeks an agreement in which both sides could gain, according to people familiar with the talks. The EU already faces 25% US import tariffs on its steel, aluminium and cars and so-called “reciprocal” tariffs of 10% for almost all other goods, a levy that had been due to rise to 20% after Trump’s 90-day pause expires in July. The levy could now increase to 50% in a no-deal scenario, which could raise consumer prices on everything from German BMWs and Porsches to Italian olive oil and hurt demand for French luxury handbags. Shares in European automakers, luxury retailers and wine and spirits manufacturers lead European stock futures higher. Major US stock indexes and European shares had dropped on Friday, and the dollar had weakened, after Trump said Washington planned to impose 50% tariffs on the EU from the beginning of June. Trump has sought to upend the world economy with his trade policies, but after his announcement in April of tariffs on multiple countries sparked financial market upheaval, he dialled down his threats in favour of talks. – Reuters

delay the tariffs until July, the deadline he had originally set when he announced new tariffs in April. Trump told reporters he had granted the request. “We had a very nice call, and I agreed to move it,” Trump said before returning to Washington after a weekend in New Jersey. “She said we will rapidly get together and see if we can work something out.” Von der Leyen said she had a “good call” with Trump and that the EU was ready to move quickly. “Europe is ready to advance talks swiftly and decisively,” she said. “To reach a good deal, we would need the time until July 9.” In early April, Trump set a 90-day window for trade talks between the EU and the United States, which was to end on July 9. But on Friday he upended that time frame and said he was not interested in a deal at all.

o European Commission chief says bloc ready to move quickly after ‘good call’ with president

BRUSSELS: US President Donald Trump backed away from his threat to impose 50% tariffs on imports from the European Union next month, restoring a July 9 deadline to allow for talks between Washington and the 27-nation bloc to produce a deal. European assets rallied yesterday. The euro hit its highest level against the dollar since April 30, while futures in Europe and Germany indicated stocks would open up more than 1.5%. Trump had said on Friday said he was recommending a 50% tariff effective from June 1, expressing frustration that trade negotiations with the EU were not moving quickly enough.

The threat roiled global financial markets and intensified a trade war that has been punctuated by frequent changes in tariff policies toward US trading partners and allies. The US president’s softened stance two days later marked another temporary reprieve in his erratic trade policy, even if the latest whipsawing in decision making reminded policymakers and investors how quickly circumstances could change. Trump, who has repeatedly expressed disdain for the EU and its treatment of the US on trade, relented after European Commission President Ursula von der Leyen told him on Sunday that the EU needed more time to come to an agreement. She asked him during a call to

The US flag flies in front of European fashion stores on 5th Avenue in New York. – REUTERSPIC

RBI seeks approval for overseas rupee lending

NEW DELHI: India’s central bank is taking another step to internationalise the rupee, seeking approval to allow domestic banks to lend the currency to overseas borrowers for the first time, two sources said. The Reserve Bank of India (RBI) has asked the federal government to allow domestic banks and their foreign branches to lend Indian rupees to overseas borrowers to enhance the use and acceptability of the local currency in trade. The proposal, which was sent to the Finance Ministry last month,

boost rupee-denominated investment and trade. The RBI will open the foreign loans in rupees only for the purpose of trade, the sources said. Currently, rupee liquidity is provided in other countries only through a limited number of government-backed credit lines or bilateral currency swap arrangements. “The objective is to reduce dependence on such arrangements and instead allow commercial banks to provide rupee liquidity on market terms,“ the first source said. – Reuters

providing loans in foreign currencies and such loans are extended mainly to Indian firms. RBI has been taking steps to increase the use of the local currency in global trade and investment. As part of the strategy, RBI recently permitted the opening of rupee accounts for non-residents outside India. Earlier this month, Reuters reported the RBI has sought government’s approval to remove the cap on foreign banks with so-called vostro accounts buying short-term sovereign debt, to

suggests lending in rupees to non-residents can begin in neighbouring countries such as Bangladesh, Bhutan, Nepal and Sri Lanka, the sources said. If successful, such lending could be extended to cross-border transactions globally, one of the sources said. According to Ministry of Commerce data, 90% of India’s exports to South Asia were to these four nations in 2024/25, amounting to nearly US$25 billion. Currently, foreign branches of Indian banks are restricted to