Reuters News Now

Trade

China lashed out at renewed threats from the White House on trade, warning that it was ready to fight back if Washington was looking for a trade war, days ahead of a planned visit by U.S. Commerce Secretary Wilbur Ross.

Fresh off a $7 billion rescue for its loss-making South Korean operation, General Motors faces a new threat as Trump considers higher vehicle import tariffs that could “make or break” its Asian subsidiary.

Tariffs on steel, threats of car import levies and intense pressure for a two-way economic deal: despite warm personal ties, Trump is giving Japanese Prime Minister Shinzo Abe a decidedly tough time on trade.

Italy

Italy searched for a last-minute exit from almost three months of political turmoil, with its biggest party looking to make a renewed attempt to form a coalition government with the right-wing League, a source said.

Commentary: Italy's newly-coalesced populist government is committed to a strategy of confrontation with the European Union that it helped found and now may destroy, writes John Lloyd."This will be a struggle for the future of Europe – and thus for the shape of the 21st century world."

Italy bond auction completed. Of course, its borrowing costs way, way higher than in recent history. But selling nearly 6 billion euros of bonds should calm any fears over market access. #italy #markets

5:33 AM - FEB 8, 2018

World

Belgian authorities faced questions over why a prison inmate, believed to have been radicalized in jail, was let out for a day and used it to kill three people in the city of Liege as well as a former associate.

Russian Foreign Minister Sergei Lavrov has rejected Ukraine’s allegation that Moscow was behind Tuesday’s murder of a Russian dissident journalist in Kiev, Russia’s state news agency TASS reported.

The Israel-Gaza border fell quiet under an Egyptian-brokered ceasefire after the most intense flareup of hostilities between Palestinian militants and Israel since a 2014 war.

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