Latest News
-
Trump is 'disappointed' to see that the US-UK relationship has changed.
Donald Trump, the U.S. president, said that it was "sad" to see the relationship between the United States and Britain "not what it used to be" after Keir Starmer held back on initially committing military support for the strikes against Iran. Trump said that France was more supportive than he expected and that he never anticipated to see these relationships, which were once the "most solid" of all. It's sad to see the relationship has changed from what it was, Trump said in an interview with the Sun on Tuesday. This is his second interview with a British newspaper within a span of two days that he criticised British Prime Minister David Cameron. Starmer stated late on Sunday that he would permit the U.S. military to use British bases for defensive attacks after they were not used during the initial attack against Iran. Trump said that the U.S. The?Britain is not needed to wage war on the Middle East, but Starmer added that it would not matter. France was great. All of them have been fantastic. "The UK is very different from other countries." Darren Jones, a senior British minister, told?Times Radio that the U.S. and UK relationship remained vital but that the country had learned lessons?from the 2003 Iraq War. He said that one of the lessons learned from 'Iraq' was to only get involved when aligned with international partners and, as he put it, with a legal basis in place. Starmer told the British parliament on Monday that President Trump had expressed his dissatisfaction with our decision to not?get involved? in the initial strikes. But it was my duty to decide what was in Britain's best interests. It is my duty to judge what's in Britain's national interest.
-
Stocks fall as inflation fears fuelled by Middle East air war cause stock market panic
Investors weighed the impact of U.S.-Israeli strikes against Iran on energy and global economic prices, and the dollar increased on Tuesday. MSCI's broadest Asia-Pacific index outside Japan dropped 2.9%, extending losses for a second day. The biggest drop was 7.2% in Korean shares as the country returned from its holiday. It was their largest one-day loss since August 2024. Tokyo's Nikkei 225 fell 3.1%, and S&P500 e-minis futures dropped 0.9%. Rupal Agarwal is Asia Quant Strategist at Bernstein, Singapore. "Economic uncertainty was already high and with the Iran conflict the geopolitical risks are expected to increase too," she said. The last time these two spikes occurred was in 2022, during the Russia-Ukraine crisis. This didn't go well for Asian markets. Wall Street stabilized after a volatile session Monday, which saw the S&P 500 rebound from an initial selloff to finish flat and the Nasdaq composite climb 0.4%. Investors bought the dip in the markets. Donald Trump, the U.S. president, said on Monday that his campaign against?Iran was exceeding expectations. An official of Iran's Revolutionary Guards announced on Monday, with no end in sight to the hostilities, that the Strait of Hormuz was closed to all marine traffic. The?country would fire on any ships trying to pass. The threat was immediately felt, with the cost to hire a supertanker for oil shipping from the Middle East into China reaching a new record of over $400,000 a DAY, according to LSEG 'data. Brent crude futures rose another 2.3% on Tuesday to $79.50. On the natural gas market, European and Asian benchmark LNG prices soared by about 40% on Monday. Working through the Risk Scenarios The surge in energy costs could increase the cost of Asian companies, and impact their profits as well as their stock prices. These stocks have risen sharply this year. Goldman Sachs analysts wrote in a report that a rise of 20% in Brent oil could result in regional earnings falling by?2%, with large intraregional variations. However, this is dependent on the duration of the conflict. They said that spikes in geopolitical risks tend to have negative effects on the short term, but they dissipate with time. The current increase in geopolitical risks coincides with a regional vulnerability to a corrective action. Energy prices are on the rise, complicating the Federal Reserve's attempts to control inflation. Policymakers have already shown signs of division over the impact artificial intelligence will have on the U.S. Economy. Rubio, the Secretary of State said that the U.S. would take steps to reduce rising energy costs due to the spike in oil prices caused by the conflict with Iran. ISM manufacturing data, released on Monday, showed that U.S. business activity increased steadily in the month of February. However, a measure of factory gate prices soared to an?almost 3-1/2-years high amid tariffs. This highlighted upside pressure on inflation before even the attacks against Iran. FedWatch, a tool of the CME Group, shows that Fed funds futures price a 95.4% implied probability that the U.S. Central Bank will maintain rates at the conclusion of its two-day next meeting on 18 March. The odds of the?June rate hold, which were previously less than 50%, increased on Monday, and are now better than a toss of a coin. Several analysts were optimistic about the impact of the war on the economy, citing limited movements in global markets. Jahangir Aziz said, "It won't be positive, of course," at a round table for media in Singapore, on Tuesday. He said that any increase in political uncertainty was bad for economies. But right now...we do not really believe that this will?be systemic shock for the global economy." The U.S. Dollar Index, which measures the strength of the greenback against a basket six major counterparts, held near a six-week high at 98.73, as the currency recovered some of its appeal as a safe-haven. The yield on the 10-year Treasury bond in the United States was up by 0.9 basis points to 4.059%. Analysts from DBS stated in a recent research note that "current market dynamics only show a mild risk off tone. This is not enough to sustain a strong?bid for U.S. Treasury Bonds or to prompt the Fed to make 'quicker cuts. They added that "the conflict raises the spectre of?stagflation." While energy prices are not at the same level as they were during the beginning of the Russia-Ukraine war in 2022 investors will likely be watching closely the duration and extent to which energy supplies will be interrupted. Gold fell 0.4% to $5,307.08. Bitcoin dropped 2.1% to $68,937.84 while Ether was down 2.3% to $1,995.50. Early European trades showed pan-regional contracts down by 0.9%. German DAX Futures were also down by 1.0%, and FTSE Futures were off 0.5%. Reporting by Gregor Stuart Hunter, Rae Wee and Kirovan Donovan: Editing by Neil Fullick and Kirovan Donovan
-
Sources say that Japan and India are in discussions to explore rare earths together.
Two people who are familiar with the discussions say that Japan and India are in talks to explore rare earth deposits together in Rajasthan's arid state. Tokyo is looking to reduce its reliance on China as a source of magnet manufacturing supplies. India's Mines minister G. Kishan Reddy announced last month that three hard rock deposits of rare earth oxides containing 1,29 million metric tonnes had been identified in Rajasthan state and Gujarat in western India. Sources directly involved in decision-making said that Tokyo expressed interest in the Rajasthan deposits, and planned to send experts there. The sources declined to give their names as the discussions were not public. The experts did not specify when they would arrive. The sources stated that the Japanese government was interested in providing technology and funding for the?extraction of rare earths that would be taken to Japan. The Indian Ministry of Mines, and the Japanese Embassy did not reply to requests for comment. Naoki Kobayashi, Deputy Director at Japan's Ministry of Economy, Trade and Industry, said that Japan was examining mining projects around the world to diversify its mineral supply, which includes rare earths. Kobayashi, however, denied that any discussions were held about specific corporate partnerships or technology in Rajasthan. India, like Japan, wants to reduce its dependence on Chinese imports through the development of industrial-scale facilities that can process rare earth elements at high purity levels. Permanent magnets are used in wind turbines, drones, fighter jets, and electric vehicle motors. They are critical to India, which is the fastest-growing economy on earth. China banned the export of dual use items last week - materials which can be used for both civilian and military uses - to twenty Japanese entities, Beijing claims that they supply the Japanese military. This is the latest in a series of disputes with Tokyo. This move effectively blocks Japanese companies from accessing the seven rare earths?and related materials? that are currently on China's dual use?control list?, as well as a number of other controlled critical minerals? One source said that Japan was seeking to collaborate with Indian companies in order to explore copper, cobalt, and lithium in Africa. (Reporting from Neha Arora, New Delhi; Additional Reporting by Yuka Obaashi, Tokyo; Editing and Mayank Bhardwaj & Sonali Paul).
-
Australia warns that there is no need for panic buying petrol in the wake of the Iran War as supplies are high
Australian Energy Minister Chris Bowen stated on 'Tuesday' that there was no need for consumers to be concerned about fuel shortages, despite the growing U.S./Israeli conflict against 'Iran. Bowen, a reporter, told reporters that Australia had 36 days' worth of petrol in reserve, 34 days' worth of diesel and 32 days' worth of jet fuel. This is the highest level of reserves in over a decade. He said that there was no rush to fill up at the service station. "I understand people's concerns, but it's vital that they know we have a good stock of petrol in Australia. There's 'no immediate danger' to petrol supplies in Australia." Tuesday, oil prices increased for the third consecutive day due to fears of disruptions in supply. Israel attacked Lebanon while Iran responded with attacks against energy infrastructure and tankers in Gulf countries. Bowen stated that regulators would act against price gouging, even though petrol prices 'could be under pressure due to a spike in oil prices. He said that panic buying would only make things worse. In a social media post, Treasurer Jim Chalmers revealed that he had written the 'consumer watchdog' to ask it to make sure fuel retailers don’t "use events in the Middle East as a way to price gouge Australians". (Reporting from Christine Chen in Sydney, Editing by Edwina gibbs)
-
Australian stocks have their worst day in two weeks due to the Middle East air war
Tuesday saw Australian shares have their worst session in more than two weeks, as an escalating Middle East air war dampened risk sentiment and raised inflation fears. The S&P/ASX 200 closed at 9,077.30 down 1.3%, its lowest level since February 13th. It was flat on Monday. Israel increased its offensive with new strikes against Iran and Hezbollah. Meanwhile, Iran fired missiles and drones towards?Israel, Gulf States and even a British base in Cyprus. This raised investor concerns over a prolonged conflict. "Now that the reporting season is over in Australia, investors are focusing on the Middle East tensions and the possible ramifications of an extended disruption," said Craig Sidney. The longer the Middle East crisis continues, the higher the oil prices should be, which could lead to an increase in inflation. The Reserve Bank of Australia's (RBA) Governor warned that the rate increase was still on the table if inflation expectations were deemed to be drifting away from anchor. Sidney stated that the RBA could refrain from immediate increases in rates due to the uncertainty of the situation, despite the short-term pressures on inflation. The?bourse saw the miners lead the way, with a decline of 3.1%, their worst session in nearly a month, and gold stocks dropping 3%. Sidney said that profit-taking was the main reason for these movements. BHP and Northern Star Resources, both heavyweights, fell 2.6% and 3.2% respectively. Banks were down?0.1%, but Commonwealth Bank of Australia, Australia's largest lender, was up 0.3%. Meanwhile, energy companies rose 1.4%, their highest close in 18 months, as oil prices surged. Investors will be watching for the Gross Domestic Product data of the country due on Wednesday. New Zealand's S&P/NZX50 index closed 0.3% lower, at 13,620.21. (Reporting by Kumar Tanishk in Bengaluru; Editing by Harikrishnan Nair)
-
The chief economist of the ECB warns that inflation in the Eurozone could rise due to a prolonged Iran war
In an interview published on Tuesday, Philip 'Lane, Chief Economist at the European Central Bank (ECB), said that a prolonged conflict in the Middle East could lead to a significant spike in inflation in the euro zone and reduce economic growth. The U.S.-Israeli war against Iran intensified on Monday with no end in site as Israel attacked Lebanon, and Iran continued its attacks on Gulf States, driving up oil prices over 10%. Lane explained that "directly, an increase in energy prices puts upward pressures on inflation in the short-term and would be negative for economic activity." He said that "the breadth and length of the conflict will determine the scale of impact and implications?for the medium-term inflation," adding that the ECB would monitor the situation. Lane explained that previous sensitivity analyses by the ECB had shown that a war of this kind would result in a?substantial spike? in energy-driven prices and a?sharp fall? in output if energy supplies were to continue to drop out of the area. Separate analysis from the ECB in December suggests that a permanent spike in oil prices of this magnitude would increase?inflation to 0.5 percentage points and reduce growth by 0.1 percent. The euro zone inflation rate is currently 1.7%. This is below the bank's 2% goal. A small increase in prices?is unlikely?to trigger policy action. The ECB tends to ignore energy-induced 'volatility' in prices, as long as the fluctuations don't impact on longer-term expectations or seep through into underlying inflation via a second-round effect. Market-based 'longer-term expectations of inflation are not much different at this time. And markets expect the ECB to maintain its 2% deposit rate throughout the year. Gursimran K. Kaur and Balazs Koranyi report from Bengaluru, and Tom Hogue and Raju G. Gopalakrishnan edit the story.
-
Wall Street Journal, March 3,
These are the most popular?stories from the Wall Street Journal. The Wall Street Journal has not verified these stories and cannot vouch for their accuracy. IAC has agreed to sell Care.com for $320m to the private equity firm Pacific Avenue Capital Partners, marking an eviction of this online marketplace. Ayar Labs is a chip company that develops co-packaged opticals. It raised $500 million during a funding round, which valued it at $3.8 Billion. A consortium of investors, including EQT and BlackRock's Global Infrastructure Partners, agreed to acquire AES at a price of $10.7 billion. The AI data center construction is fueling the surge in demand for electricity. Elliott Investment Management agreed to make a "sweetened" bid for Toyota Industries, which values the company at nearly $40 billion. Fitch Ratings has lowered Paramount's credit rating from BBB- to BB+ due to the proposed $81 billion purchase of Warner Bros. SoftBank PayPay will?target a valuation up to $13.4 Billion in its U.S. initial public offering. The Japanese company is pushing ahead despite volatile markets in what could be one of the largest U.S. listings for a Japanese company.
-
MORNING BID EUROPE - Trump's 'Whatever it takes' pledge deepens the stock selloff and lifts oil prices
Gregor Stuart Hunter gives us a look at what the future holds for European and global markets. The global markets have been 'caught up in a heightened state of uncertainty, as U.S. president Donald Trump has sought to defend an open-ended, broad war against Iran. This has smashed stocks yet again and pushed energy prices higher. The markets did not seem to be able to grasp that?Trump had said the U.S. would "do whatever it takes" in order for them achieve their military objectives in Iran. The safe-haven status that Gulf cities such as Dubai enjoy has been questioned like never before. This highlights the risks associated with the expanding conflict not only for the Middle East, but also for the global economy. It could have a wide range of consequences, including an increase in inflation, and the impact on investor confidence. Crude oil prices are continuing to rise after Iran threatened to shoot at ships trying to cross the Strait of Hormuz. Brent crude increased 2.5% to $79,64 after the 'cost of hiring a Supertanker - to ship oil from Middle East to China - surged to a record high of more than $400,000. Secretary of State Rubio announced that the U.S. would take steps to reduce rising energy prices. Plans will be revealed later Tuesday. MSCI's broadest Asia-Pacific share index outside Japan fell 2.3%. This was led by a drop as high as 6.5% on Korean shares. S&P 500 futures dropped 0.8%, and Nasdaq futures declined 0.9%. The U.S. Dollar Index, which measures greenback strength against a basket of six major counterparts, held at close to a 6-week high of 98.622, as the Iran'strikes rattled market nerves, and the currency gained some of its appeal as a safe-haven. Satsuki Katayama, the Japanese Finance Minister, warned that the market was on notice and suggested that the possibility of intervention to protect the yen (which has been under greater selling pressure due to the Middle East crisis) remained. Gold rose 0.6% to $5359.93, while the yield on U.S. Treasury bonds grew by 0.4 basis points. Early European?trades saw pan-regional futures down by 0.9%. German DAX Futures dropped 1% and FTSE Futures fell 0.3%. The following are key developments that may influence the markets on Tuesday. Earnings of the company CrowdStrike is available at Best Buy, Target and Sea Economic Data Euro Zone HICP flash for February Debt auctions Germany: 5-year government debt
UN chief upset Blackrock gave up climate group, prompts others to stay
U.N. SecretaryGeneral Antonio Guterres is dissatisfied that the world's most significant possession supervisor, BlackRock BLK.N, has actually left a. global initiative to combat environment modification, his spokesperson. stated on Friday, urging other business to stay the course.
The move came under pressure from Republican political leaders. BlackRock, which handles some $11.5 trillion, stated that its. subscription triggered confusion regarding BlackRock's practices and. subjected us to legal questions from numerous public officials.
Under the voluntary Internet No Asset Managers Effort,. Blackrock had pledged to support the objective of net absolutely no greenhouse. gas emissions by 2050, utilizing influence such as how it votes. proxies at corporate conferences.
The decision by BlackRock is disappointing particularly provided. the important function the private sector, and especially property. supervisors, have to play in combatting the existential risk of. climate modification, U.N. spokesperson Stephane Dujarric said.
We encourage those business that remain in the Net No. alliance and other such initiatives to persevere and. continue their efforts to be active in the fight versus the. devastating impact of climate change, he stated.
Blackrock stated its choice to leave the initative does not. change the way we develop items and services for clients or. how we handle their portfolios. It said its active portfolio. managers continue to assess product climate-related dangers.
We say climate modification is an existential hazard and it's not. simply words, Dujarric stated. We're seeing the effect of it and. the destruction of it worldwide.
Countries abundant and bad are being impacted. Nobody is safe,. and it is overloaded, obviously on federal governments, ... however also on. the private sector and the cash and the financial investments that they. manage, he said. 2024 was the hottest year on record, the World Meteorological. Company stated on Friday, and the very first in which temperature levels. surpassed 1.5 C above pre-industrial times - a limit that may. cause more extreme environment disasters.
(source: Reuters)