Donald Trump's tariffs will hurt global growth, OECD warns
Global economic growth is set to be slower this year largely because of Donald Trump's US tariffs, according to a leading international policy group.Worldwide growth is now expected to slow to 2.9%, down from a previous forecast of 3.1%, said the Organization for Economic Co-operation and Development (OECD).It blamed a "significant" rise in trade barriers for the downgrade and warned that "weakened economic prospects will be felt around the world, with almost no exception".Since the US president returned to the White House, a long list of countries have been targeted by tariffs, but Trump's unpredictable approach to implementing the measures has created widespread uncertainty.
"We are forecasting basically a downgrade for almost everybody," Alvaro Pereira, the OECD's chief economist told the BBC. "We'll have a lot less growth and job creation than we had forecasted in the past."The OECD also lowered its outlook for US economic growth this year, from 2.2% to 1.6%, before slowing again in 2026.It warned that the US was at risk from rising inflation, something that Trump repeatedly promised would fall during his presidential campaign.
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The Herald Scotland
18 minutes ago
- The Herald Scotland
Owner of Scotch whisky giant Bruichladdich scraps target
However, shares in the Paris-listed closed up more than 5%, after Remy signalled the 'excellent execution' of cost-cutting plans, with €85 million achieved compared with €50m expected. Remy said it has now saved €230m over the last two years. The savings partially offset a sharp decline in sales at the company, which fell by 4.8% last year to €984.6m. Operating profit tumbled by 30.5% to €217m. The decision to withdraw a long-term growth target set in 2020 underlines the continuing turbulence in the global spirits market that has arisen from a slowdown in major markets such as the US and China and the ongoing uncertainty sparked by President Donald Trump's trade tariffs. That took a further turn this week when the President doubled US tariffs on foreign aluminium and steel to 50%, although the UK has so far secured an exemption. Remy Cointreau, which is perhaps best known for its Cognac and brandy, is the latest big-name Scotch whisky distiller to highlight the impact of tariffs on business, following Diageo and Pernod Ricard. Diageo reported last month that US tariffs may hit profits by up to $150m per year, having withdrawn its guidance earlier in the year amid tariff uncertainty, although that was before it was ruled by the US Court of International Trade that the Trump administration did not have the authority to impose sweeping tariffs on other countries. The ruling, which covered the 10% global baseline tariff and the 50% tariff threatened against the European Union, has been appealed. Remy Cointreau said yesterday: 'Given the continued lack of macroeconomic visibility, the geopolitical uncertainties surrounding US-China tariff policies, and the absence to date of a recovery in the US market based on improving underlying trends… Remy Cointreau believes the conditions requited to maintain its 2029-2030 targets are no longer in place. 'As a result, the group has opted to withdraw its objectives for 2029/30 originally issued in June 2020. 'This decision also reflects the arrival of a new chief executive officer, who will establish his own strategic roadmap while remaining aligned with the value strategy implemented by the group for decades.' The removal of the long-term target was announced as Remy, which has appointed Franck Marilly as its new chief executive, replacing Eric Vallat, reported that sales and profits tumbled in its 2024/2025 financial year. However, it expects to return to growth in the current year. Excluding any increase in customs duties in China and the US, it expects operating profit to increase in the high single-digit to low double-digit [percentage] range. The company estimates that potential increases in duties will have a maximum gross impact of €100m on operating profit (€60m in China and €40m in the US) but said it could offset this by 35% through its own action plan, reducing the maximum net impact to €65m. These estimates are based on additional anti-dumping duties of 38.1% on Cognac imports arriving in China, and custom duties of 20% on imports from the EU and 10% from the UK and Barbados on goods entering the US. Remy said it factored in 10% custom duties on all imports to the US for the April-June 2025, corresponding to the 90-day grace period. Shares in Remy Cointreau, which trade on the Paris stock market, were trading up 4% at €48.8 around 5.30pm last night.
Daily Mail
24 minutes ago
- Daily Mail
Jimmy Buffett's 'upset and confused' widow locked in legal row over late singer's $275M fortune
A legal battle is brewing over the estate of late singer Jimmy Buffett. The Margaritaville singers's widow Jane Buffett said in legal docs she believes the co-trustee of the estate is not being forthright about the $275 million in it, according to legal documents reviewed by People. Jane says both the co-trustee Richard Mozenter, as well as an attorney assigned to carrying out the high-profile transaction named Jeffrey Smith, have been 'openly hostile' toward her, according to court docs reviewed by the magazine. Lawyers for Jane Buffett told the court in legal docs that she has on multiple occasions urged Mozenter to 'act responsibly and perform his duties' to no avail. They added, 'Mr. Mozenter has failed to perform even the most basic tasks required of him in his role as co-trustee, including providing Mrs. Buffett with information concerning Trust assets and finances, which has left Mrs. Buffett in the dark with regard to the state of her own finances. 'Along the way, Mr. Mozenter has belittled, disrespected, and condescended to Mrs. Buffett in response to her reasonable requests for information she undoubtedly was entitled to receive.' Jane's legal team told the court that her late spouse initially put together the Trust in 1990 so she would have a nest egg if anything happened to him. Changes were made to the Trust in 2017 and 2023, according to the outlet, which noted that the pair's three kids have shares of the remnant Federal estate tax exemption totaling about $2 million in value. An insider told the outlet that Jane and her confidantes are upset and confused by the drama. 'Jimmy would never have wanted Jane to be treated like this ... I know how close Jimmy and Jane were all these years, and how Jimmy relied upon and trusted Jane around so many of his important decisions in his life and career,' the source said. Jane said that Mozenter was vague and evasive when pressed on details about the estate following the singer's death. 'Rather than help his recently widowed client understand her finances, Mr. Mozenter spent the next 16 months stonewalling and making excuses for why he could not yet provide the requested information,' Jane said in the filing. Jane said that earlier this year, Mozenter put 'shocking' results in front of her, as 'he showed the Marital Trust earning less than $2 million in net income, a remarkably poor return for a Trust with an estimated $275 million in assets.' Jane said that Mozenter advised her to 'consider adjustments' in her budget and possibly sell off real estate, according to the court filing. The filing said 'if the Marital Trust truly earns such a low return consistent with the financials Mr. Mozenter presented, it will confirm that Mr. Mozenter is either not competent to administer the Trust or unwilling to act in Mrs. Buffett's best interests.' Daily Mail has reached out to Richard Mozenter for further comment on the topic. The singer-songwriter, who popularized beach bum soft rock with the escapist Caribbean-flavored song Margaritaville and turned that celebration of loafing into a billion-dollar empire of restaurants, resorts and frozen concoctions died at the age of 76 on September 1, 2023. 'Jimmy passed away peacefully on the night of September 1st surrounded by his family, friends, music and dogs,' a statement posted to Buffett's official website and social media pages said at the time. 'He lived his life like a song till the very last breath and will be missed beyond measure by so many.' The classic song Margaritaville, released on February 14, 1977, quickly took on a life of its own, becoming a state of mind for those 'wastin' away,' an excuse for a life of low-key fun and escapism for those 'growing older, but not up.' The song is the unhurried portrait of a loafer on his front porch, watching tourists sunbathe while a pot of shrimp is beginning to boil. The singer has a new tattoo, a likely hangover and regrets over a lost love. Somewhere, irritatingly, there is a misplaced salt shaker. 'What seems like a simple ditty about getting blotto and mending a broken heart turns out to be a profound meditation on the often painful inertia of beach dwelling,' Spin magazine wrote in 2021. 'The tourists come and go, one group indistinguishable from the other. 'Waves crest and break whether somebody is there to witness it or not. Everything that means anything has already happened and you're not even sure when.' The song - from the album Changes in Latitudes, Changes in Attitudes - spent 22 weeks on the Billboard Hot 100 chart and peaked at number eight. The song was inducted into the Grammy Hall of Fame in 2016 for its cultural and historic significance, became a karaoke standard and helped brand Key West, Florida, as a distinct sound of music and a destination known the world over. 'There was no such place as Margaritaville,' Buffett told the Arizona Republic in 2021. 'It was a made-up place in my mind, basically made up about my experiences in Key West and having to leave Key West and go on the road to work and then come back and spend time by the beach.' The song soon inspired restaurants and resorts, turning Buffett's alleged desire for the simplicity of island life into a multimillion brand. He landed at No. 18 in Forbes' list of the Richest Celebrities of All Time with a net worth of $1 billion. Tributes following the singer's passing came from all walks of life, from Hollywood star Miles Teller posting photos of himself with Buffett to former U.S. Sen. Doug Jones of Alabama, who wrote on X that Buffett 'lived life to the fullest and the world will miss him.' Brian Wilson of the Beach Boys wrote: 'Love and Mercy, Jimmy Buffett' and Paul McCartney called him 'one of the kindest and most generous people.' Buffett's evolving brand began in 1985 with the opening of a string of Margaritaville-themed stores and restaurants in Key West, followed in 1987 with the first Margaritaville Café nearby. Over the course of the next two decades, several more of each opened throughout Florida, New Orleans and California.
Reuters
33 minutes ago
- Reuters
South Korea's new President Lee begins moves to tackle economic 'crisis'
SEOUL, June 5 (Reuters) - South Korea's new President Lee Jae-myung held his first cabinet meeting on Thursday focused on devising an emergency package to address stagnating economic growth and aid households, moving swiftly to start tackling a top campaign pledge. Lee took office on Wednesday just hours after riding a wave of anger over a brief martial law imposed by Yoon Suk Yeol to win the snap election. The attempt at military rule led to Yoon's ouster and sent shockwaves through Asia's fourth-largest economy. In brief remarks open to the media, Lee told the carry-over cabinet left by the caretaker government that was in place following Yoon's impeachment in December that there was no time to waste in getting to work as the people were facing hardship. Lee has so far only nominated a political ally and legislative veteran as prime minister and is racing to form a cabinet and staff his office to maintain continuity in administration. The new leader expressed bewilderment after entering the presidential office on Wednesday, saying it was stripped of computers, printers and even pens and was quiet like "a graveyard" with government officials who had been assigned there sent back to their posts. Lee has made economic recovery one of his top priorities and vowed to immediately unleash fiscal spending of at least 30 trillion won ($22 billion) to boost growth, which was projected by the central bank in May to be almost half of its earlier estimate this year at 0.8%, down from 1.5% in February. Kim Min-seok, whose appointment as prime minister requires parliamentary approval, said on Wednesday the country was facing even more economic turmoil than during the Asian financial crisis of 1997, complicated by unfavourable external factors. "Today, the economy is heading downward and stagnating, which is why I believe it's much more difficult," he told reporters. The previous government had made little progress in trying to assuage crushing U.S. tariffs that would hit some of the country's major export-reliant industries, including autos, electronics and steel. Lee faces what could be the most daunting set of challenges for a South Korean leader in decades, analysts said, ranging from healing a country deeply scarred by the martial law attempt to tackling unpredictable protectionist moves by the United States. He spoke to the country's top military leader on Wednesday as his first official event. ($1 = 1,359.2000 won)
