Global stock markets plunge amid Trump tariff turmoil

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Global News Podcast 31 min 17 speakers 6 chapters transcribed
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Why are global stock markets plunging?

Valerie Sanderson 0:53
This is the Global News Podcast from the BBC World Service. I'm Valerie Sanderson and at 13.30 hours GMT on Monday the 7th of April, these are our main stories. All eyes turn to Wall Street as stock markets in Asia and Europe plunge. Karsten Brzeski is Chief Economist for Germany at the Bank ING.
We see that financial markets are currently completely repricing their view on the global economy, namely that they are now expecting a recession coming in the US and they also see the threat of a global recession this year.
Valerie Sanderson 1:25
We hear about the allegations of mistreatment of Palestinian prisoners in Israeli custody.
Unnamed Woman 1:31
They cuffed me and beat me so much that blood was pouring down my arms and legs. I went three days without a single drop of water. We would get tortured on the way from the barracks to the doctor's room.
Valerie Sanderson 1:42
as efforts continue to restore a ceasefire in Gaza. Also in this podcast, the Dominican Republic cracks down on migration from neighbouring Haiti, which is being ravaged by gang violence. And the new technology that could save honeybees in Europe from aggressive Asian hornets. We start with the global stock market turmoil as investors react to US President Donald Trump's trade tariffs.

What are the implications of Trump's tariffs on the economy?

Valerie Sanderson 2:13
European exchanges have plunged following heavy falls on the Asian stock markets as concerns grow over a global recession. Markets in Europe's big three economies, France, Germany and the UK, have recovered slightly but were down 3-4%. at the time of recording this podcast. EU ministers are meeting in Luxembourg to discuss countermeasures to the US tariffs. Karsten Brzeski, chief economist for Germany at the bank ING, says markets fear a global downturn.
We see that financial markets are currently completely repricing their view on the global economy, namely that they are now expecting a recession coming in the U.S. And they also see the threat of a global recession this year. Markets are not finally understanding that these tariff threats are not short-lived or half-baked. This is really for real. They are here to stay.

How are Asian markets and governments reacting to tariffs?

And it really will require big trade deals in order to see a reduction in tariffs again. And I cannot see how bigger countries like the EU, like China, will be able to deliver these great trade deals that Donald Trump is expecting.
Valerie Sanderson 3:22
Asian markets are now closed after heavy falls. Hong Kong's Hang Seng Index closed with its steepest decline since the 1997 Asian financial crisis. Here's our business reporter Mariko Oi in Singapore.
Mariko Oi 3:36
Thank you. it usually takes an enormous shock like those events to trigger something like that. But now analysts think that these tariffs may actually be just as big to push the world economy into a recession. And that's why we're seeing the sell-off to continue as European markets reopen for trade. And how are Asian governments reacting? Are some of them trying to do a deal with President Trump? Well, the White House says that more than 50 governments, global leaders, are in touch with Washington to negotiate a deal. So I would assume that many of them are Asian governments because, as we were talking about it last week, Asian countries have actually been hit some of the hardest, some of the highest levels.
Mariko Oi 4:35
tariffs by the United States. Of course, China is a key target. But of course, other governments have also been hit hard by those high tariffs. So I'm sure they are negotiating. It is interesting, though, to see somewhat of mixed reaction from Asian governments. So Beijing was one of the first and strongest to respond to those tariffs last week, announcing those retargetary tariffs.

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