American small and medium-size companies that rely on China are scrambling to adjust their business plans in response to the escalating trade war.Traderead more
Here are the products that stand to be the most affected by China's new tariffs on $75 billion worth of U.S. goods.Marketsread more
The European Union will respond in kind if the U.S. imposes tariffs on France over digital tax plan, EU chief Donald Tusk told G-7.Technologyread more
The world's second biggest economy is past a point where it cannot ignore its enormous debt anymore, according to an analyst.China Economyread more
Trump said he will raise tariffs on $250 billion in Chinese goods to 30% and hike duties on another $300 billion in products to 15%.Politicsread more
China said on Saturday it strongly opposes Washington's decision to levy additional tariffs on $550 billion worth of Chinese goods and warned the United States of consequences...Politicsread more
Stocks dropped after Donald Trump ordered that U.S. manufacturers find alternatives to their operations in China.US Marketsread more
The final week of August could be highly volatile as markets fret over the economy and the latest developments in trade wars.Market Insiderread more
Federal Reserve Vice Chair Richard Clarida said Friday that the global economy has deteriorated in the past month.Marketsread more
The latest escalation in the trade war ups the odds the economy will fall into recession and that the Fed will aggressively cut rates.Market Insiderread more
"We don't need China and, frankly, would be far better off without them," Trump tweeted.Politicsread more
arrest@ (Updates prices, adds quote)
BRASILIA, March 21 (Reuters) - Brazilian financial markets fell in highly volatile trading on Thursday as investors feared former President Michel Temer's arrest on graft charges could slow proposed pension reform seen as critical to injecting life into a tepid economic recovery.
Temer, who left office on Jan. 1, is accused of leading a "criminal organization" that took in 1.8 billion reais ($472 million) in a bribery and kickback scheme related to the construction of a nuclear power complex.
At one point on Thursday, the Bovespa stock market lost as much as 3.7 percent for the week, which would mark its worst week since August.
Brazil's 10-year bond yield was up more than 20 basis points at 8.93 percent and the currency, the real, down over 1 percent at one point.
But markets clawed back some of these losses as the sharp moves prompted traders to book profits, reduce positions and assess what is next for the pension reform process.
"Investors were already primed to sell Brazil and the uncertainty fueled by (Temer's) arrest accelerated the move," said one trader at a Sao Paulo brokerage.
"But that gradually eased and when all is said and done, will the fiscal adjustment (from reforms) be enough? I think today's caution was exaggerated," he added.
The Bovespa ended 1.34 percent lower at 96,729.08 points, Brazil's 10-year bond yield closed up four basis points 8.76 percent and the currency ended little changed at 3.79 per dollar.
Temer's shock arrest came a day after the government unveiled a drastically watered down austerity plan for military pensions and pay, and a poll showed President Jair Bolsonaro's popularity has plummeted.
There is no direct link between Temer and the Bolsonaro government or its economic agenda. But pension reform is not going as smoothly as the government would like, and the scandal around Temer and his former aides is seen as an unwelcome distraction.
Pension reform remains investors' biggest worry. The 10.4 billion reais in savings from changes to military pensions and pay was well short of the 93 billion reais the government had originally trumpeted.
This raises questions about how much the government will be forced to compromise with other sectors, diluting its savings target of over 1 trillion reais in a decade and slowing its passage.
Recent surveys by Bank of America Merrill Lynch and Citi show investors growing more pessimistic on the eventual scale of savings and speed of the reform bill's passage through Congress.
(Reporting by Jamie McGeever; editing by Tom Brown, Richard Chang and G Crosse)