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Stocks fall despite Samsung's upbeat forecast. The yen is weakening
Asian stocks fell on Tuesday, despite the fact that South Korea's Samsung Electronics had forecast a 19-fold increase in its second-quarter profits. Meanwhile, the Japanese yen was still pinned at a 40-year low amid speculation about intervention. Samsung Electronics,?the world's largest memory-chip maker, has estimated its operating profit for April-June at 89.4 trillion won ($58.44billion), marking the third consecutive quarter of record profits. South Korean shares fell by 4.1% while MSCI's broadest Asia-Pacific share index outside Japan dropped by 0.73%. Japan's Nikkei shed 1.08%. Investors are seeking refuge in this sector due to concerns about the economy, inflation and the future, including the worsening of tensions with Iran, according to Toru Suehiro. Chief economist at Daiwa Securities. Suehiro, in a recent note, said that while it would be better for share prices to move in line with economic conditions and real-world growth, these conditions don't change very quickly. He added that the markets are therefore likely to remain range bound. Wall Street's three major stock indexes closed higher overnight on hopes artificial intelligence would fuel a strong earnings season in the second quarter. The Dow Jones Industrial Average (.DJI) ended the day up by 0.29%. Meanwhile, the S&P500.SPX rose 0.72%. And the Nasdaq composite.IXIC increased 1.12%. SK Hynix, a South Korean chipmaker, launched a U.S. shares sale on Monday to?raise?43 trillion won ($28.07billion) and drew interest from up to $7billion of major investors. Broadcom announced that it has expanded its partnership with Apple for the development and supply of custom chips through 2031. INTERVENTION AT THE HORIZONT? The yen was near its lowest level in 40 years on the currency markets Tuesday, as traders became more confident to push it lower. There were no signs of Japanese intervention, but the possibility of a sudden yen buying move by Tokyo held losses at bay. Early Asia trade saw the yen struggling to stay below 162 dollars and fell to its lowest level against the British Pound since 2007, at 217.09 after slipping to a new overnight low. On Tuesday, Japan will hold an auction of 30-year Government Bonds. Akihiko Yokoo is a senior analyst at MUFG bank. He said that if the auction was weak, the government bond yields might rise further, and this could accelerate the selling of the yen. The dollar index (which measures the greenback versus a basket of currencies, including the yen, the euro and others) rose by 0.03% at 100.89. Meanwhile, the euro fell 0.01% to $1.1439. Oil prices climbed slightly, but gains were limited. Traders focused on supply and demand after the price of oil reached levels seen before the Iran war. U.S. crude climbed 0.54% to 68.92 per barrel. Brent climbed to $72.34 a barrel, up 0.49% for the day. Donald Trump announced on Monday that the United States will either "finish the deal" with Iran or reach an agreement. He also renewed his threat of military intervention as Tehran continues to show defiance after the funeral of the former Supreme Leader Ayatollah Ali Khamenei. Trump will be attending a NATO summit in Turkey this week. Fed watchers can get a glimpse of how Kevin Warsh, the new chair, will steer the central bank on Wednesday when the Federal Open Market Committee releases its first minutes. The yield on the benchmark U.S. 10 year notes increased 0.42 basis points to 4.483% from 4.479% at late Monday. Gold fell 0.49% on the commodity market to $4,143.59 per ounce. Silver dropped almost 1%, to $61.47 per ounce. Copper fell 0.21% to $13,375.00 per ton. (Reporting and editing by Jacqueline Wong; Satoshi Sugiyama)
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George E. Johnson died at age 99, the founder of a pioneering Black hair product company.
George E. Johnson died on Monday, aged 99. His eponymous Chicago-based company, which marketed brands such as Afro Sheen and Ultra Wave, radically changed the way Black women cared for their hair in the U.S. Johnson, who was reportedly born in a "sharecropper's" shack in Mississippi, and moved with his mother to Chicago at the age of 2, died in his condo in downtown Chicago from natural causes, according to his son John Edward Johnson. The New York Times reported, citing Johnson's second wife Madeline Murphy Rabb as the cause of death, that Johnson had died from a respiratory disease. In 1954, the Johnson Products Company was established to cater to African Americans’ evolving tastes in fashion, hairstyles and cosmetics at a time when?U.S. Companies and advertisers did not pay much attention to Black customers. Johnson founded the business with his first spouse, Joan Johnson. She died in 2019. The company grew to control nearly 80% in the Black haircare market by 1960. In 1971, it became the first Black owned company listed on the American Stock Exchange (now called NYSE American). The company's marketing campaign, which echoed the slogans and images of the Black Pride and Black Power movements of that era, helped the Chicago-based television music show "Soul Train" grow from a weekly broadcast to a nationally syndicated success. The roots of the company illustrate the challenges faced by minority entrepreneurs at the dawn of the civil right movement. Johnson, who began as a door to door cosmetics salesman, after dropping out high school, launched a business with a $250 bank loan he obtained by telling a loan officer that he needed the money for his family's vacation. According to the Chicago Sun-Times, and BlackPast.org an online encyclopedia dedicated to African American History, his first bank had turned down his request for a loan. I knew that this request for a vacation loan would not shake [the loan officer]'s belief that he is superior to me. Johnson's 2025 memoir "Afro Sheen" recounted that it would not challenge the stereotypes he held about Black men being subservient and unintelligent. From HAIR STRAIGHTENER to the AFRO The company introduced its first major brands as hair-relaxing products for the home, such as Ultra Wave for women and Ultra Sheen, to achieve the straight and wavy styles popular during 1950s and 1960s. Johnson's Company adapted to the Black Power movement by introducing its Afro Sheen Blow Out Kit in the late 1960s. Classy Curl is a product that allows consumers to achieve the "Jheri curl" perm, first popularized by Jheri Redding, a white hairdresser and chemist. Johnson's venture started to struggle as it was faced with competition from large cosmetics and hair care companies such as Revlon, who were looking to gain market share in the lucrative African American hairstyling industry. After the Johnsons' divorce, the ownership of the Johnsons' business changed several times before a major African American investment company acquired it in 2009 from Procter & Gamble.
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Oil prices rise as the focus shifts from supply to demand
The oil prices rose on Tuesday but the gains were modest as traders focused their attention on supply and demand. Brent crude futures rose 28 cents or 0.39 percent to $72.29 and U.S. West Texas?Intermediate crude climbed to $68.84 per barrel at 0046 GMT. This is up 29 cents or 0.26 percent after having settled down on Monday to levels similar to those seen before the Iran war. Tim Waterer is the chief market analyst for KCM Trade. He said that although the steps taken towards recovering supply have reduced the immediate risk premium the market still remains cautious about putting too much faith in the stability and continuity of the current ceasefire given the ongoing nature of U.S. -Iran relations. Donald Trump announced on Monday that the United States would either "finalize" a deal with Iran, or "finish the task." He renewed his threat of military intervention as Tehran continues to show defiance after the funeral of the former Supreme Leader Ayatollah Ali Khamenei. Investors are closely monitoring the?talks' between the U.S.A. and Iran regarding the fate of shipping in the Strait of Hormuz, as well as the recovery of Gulf oil exports. Estimates say that the United Arab Emirates increased crude production above 3.8 millions bpd, their highest level since April 2020, and also above pre-Iran War levels. They did this after they left OPEC+ production quotas in May. We will be looking for early signs of demand, especially from China. Waterer said that the market has already priced in "a lot" of the good news about supply, and the next leg up in oil prices will depend on whether the physical reality matches optimistic headlines. On Sunday, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia agreed to increase the output target by 188,000 bpd for August. This is in addition to the similar increases made for June and July. Saudi Arabia has cut its official selling price (OSP) of its flagship Arab Light crude to Asia by $11, a drop of $11 from the previous months and the largest drop in over two decades.
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Australia's Lynas and South Korea's JS Link Sign Deal for Malaysia Magnet Factory
Lynas?Earths 'announced on Tuesday that it had signed a deal with South Korea JS Link for the development of a magnet plant in Malaysia. JS Link, a magnet manufacturer in?South Korea, and the Malaysian factory planned by JS Link will receive rare-earth material from the Australian producer until January 2038. This partnership comes after a magnet manufacturing agreement between the two companies in last year. Under the new?deal, JS Link is going to establish a permanent magnet factory in Kuantan (Malaysia) with 3,000 tonnes of neodymium, iron, and boron (NdFeB). Lynas stated that it will invest a total of?about A$50m ($34.78m) in JS Link's shares to help develop the facility. Lynas said that the magnets produced will be used to supply supply chains for automotive, wind power and electronics manufacturing in key markets such as Korea and Malaysia. The Kuantan magnet factory is expected to create 400 new jobs. Malaysia announced on Monday that it will review the $96 million contract signed between Lynas (the operator of one of the largest rare-earths processing plants in Southeast Asia) and the U.S. Department of Defense earlier this year. The four-year contract has been met with?protests. Some rights groups have accused Lynas that it supplied materials to U.S. made weapons used by Israel in its war on?Hamas? in Gaza. Malaysia, a Muslim majority country, has long supported the Palestinian cause. It does not maintain diplomatic relations with Israel.
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Trump announces Walmart will lower the price of ground beef and other items
After a request by his administration, President Donald 'Trump' said that Walmart will lower the prices of many products including ground beef. Customers will save money on meat, soda and produce at Walmart and Sam's Club this summer. The record-high prices of beef have hurt the wallets and pockets of American consumers, who also had to pay higher gas prices following the U.S.-Israeli attacks on Iran. The price of steaks and hamburgers soared as a result of a prolonged drought that destroyed pasture lands and increased the cost of cattle feed. This forced U.S. ranchers into reducing their herds. Economists say it will take many years to rebuild a herd in order to increase domestic beef supply. Walmart is dropping the price of a pound (or 2.2 ounces) of ground beef "almost 15%" after Trump's administration requested it to coincide with America's 250th birthday. Trump wrote on Truth Social that "this is a big deal for millions of Americans, who are smart enough to'shop at Walmart. It is a patriotic Company, who love the U.S.A." Walmart announced in a press release that one pound of ground beef rolls (73%) would be reduced to $5.94, down from $6.74. This represents a 12% reduction. The retailer said that it also lowered the prices of items such as Coca-Cola, PepsiCo and chips. According to a statement, Member's Mark's 88/12 ground meat will now be sold at Sam's Club for $5.97 a pound instead of $6.17. This represents a 3% decrease. Walmart is taking a bold step, and other retailers should follow their example," Trump said. Trump had previously encouraged the importation of Argentine beef at low tariffs to lower U.S. 'prices. This angered American ranchers. He also directed the Department of Justice?to investigate whether U.S. Meatpackers were colluding in order to raise prices. U.S. producers used to import Mexican cattle for fattening and slaughtering for 'American consumers. But Washington banned such 'imports? more than a yea ago because of the spread in Mexico of the flesh-eating New World Screwworm parasite. Reporting by Costas Pittas, Ryan Patrick Jones, Tom Polansek, Nicholas Brown, and David Gregorio in Los Angeles; editing by David Gregorio
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Oil prices hold at pre-war levels, but stocks surge on news of chip production
Wall Street surged Monday, and oil prices settled at pre-Iran War?levels as investors awaited new developments in the AI and chipmaker sectors ahead of corporate earnings. The three major U.S. stock indexes all ended the day in positive territory. The Dow Jones Industrial Average closed the day up by 0.29%. Meanwhile, the S&P 500 rose 0.72% while the Nasdaq Composite increased 1.12%. MSCI's global index of stocks rose by 0.41%. Global AI continued to dominate the markets. South Korean chipmaker SK Hynix 00660.KS launched a U.S. shares sale on Monday to raise 43 trillion won (28.07 billion dollars) and received indications of interest from major investors for up to $7 billion. Broadcom also announced that it has expanded its partnership to Apple for the development and supply of custom chips until 2031. Microsoft announced that it will eliminate 4,800 jobs - roughly 2,1% of its workforce - as part of the 'trend of tech layoffs. Investors will be watching closely for how artificial ?intelligence-related companies are faring amid some fears about a bubble in the upcoming earnings season. Delta Air Lines, PepsiCo and other big names in the U.S. are reporting earnings this week. Analysts expect Samsung Electronics to make a big splash on Tuesday, as they anticipate an 18-fold rise in profits. OIL STEADY Prices remained at pre-Iran War levels on Monday. U.S. crude remained at $68.69 per barrel, while Brent dropped just 0.03% to $75.10 per barrel. There were no major developments in the fractious U.S. - Iran peace talks. However, there are 160 ships reported to have transited the Strait of Hormuz from Monday through Saturday last week. Saudi Arabia slashed the official selling price of its oil, while OPEC+ approved a new production target for August. According to Institute for Supply Management data, the recent decline in oil prices has helped slow down the rate of inflation in the services sector. ISM reports that the U.S. service sector activity declined in June but employment increased after contracting for three consecutive months. The U.S. president will be attending a NATO summit in Turkey next week. Fed watchers can get a glimpse of how the new chairman Kevin Warsh will steer the central bank on Wednesday when the Federal Open Market Committee releases its first minutes. Analysts expect Warsh to give limited clues about future interest rate movements, but Fed Governor Christopher Waller said that forward guidance can be "valuable" in the right circumstances. The yield on the benchmark 10-year U.S. notes dropped 0.77 basis points to 4.471% from 4.479% late on Thursday. The dollar index fell a little on the currency market, dropping 0.01% to a level of 100.86. This was in response to Thursday's lower-than-expected U.S. payroll report. The dollar rose 0.44%, to 162,08 yen. This is not far off the 40-year high of 162,84 as speculators tested Japanese authorities on their intervention. Gold was down 0.29% at $4,163.10 per ounce on the commodity markets after it jumped 2% in the previous week. (Reporting and editing by Will Dunham, Matthew Lewis and Pete Schroeder from Washington)
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Tennessee Guard soldiers in a task force under Trump's leadership kill an armed man.
Authorities said that two Tennessee National Guardsmen assigned to a Donald Trump-backed anticrime task force shot and killed an armed man being chased by the 'Memphis Police. This brought attention to a high profile federal initiative aimed at fighting crime, which has been hailed as a great success. The soldiers involved in the incident on Sunday were members of the Memphis Safe Task Force. This was a partnership between federal agents, National Guard units and local police that was launched last year to fight violent crime in Memphis. Memphis is one of many Democratic-led cities in the United States. The Trump administration has sent federal forces to cities in which it is based. Trump and senior officials visited Memphis in March in order to praise this operation. The Republican president has given credit for the reduction of 'violent crime' in the city. The city police department reported that when they responded to the report of a?shots fired in downtown Memphis, they saw a man with a handgun. According to the Tennessee Bureau of Investigation (TBI), two Guard soldiers nearby also joined the chase. The suspect was identified as Tyrin Johnson, 20 years old. The TBI stated that the situation escalated for?reasons still under investigation?, which led to two National Guard soldiers shooting at Johnson, killing him. Memphis Police Department said the suspect turned toward the Guardsmen with a pistol before they shot at him. Two soldiers from the Tennessee National Guard were confirmed to be involved in the shooting by a?spokesperson for that organization. In an email, Darrin Haas, the spokesperson for the Tennessee National Guard, stated that two medical specialists immediately provided first aid to the armed man. However, the male was declared dead at the scene. The TBI is conducting an investigation at the request from the Shelby County District Attorney. (Reporting and editing by Donna Bryson, Howard Golle and Howard Golle)
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Oil prices fall, but stocks rise as Iran and chips drive markets
Wall Street gained in the midday trade on Monday, largely due to continued optimism about chip stocks. Oil fell as a result of an expected surge in supply. All three major U.S. indexes rose in the early afternoon after European stocks had flirted earlier with'record peaks' before retreating, ahead of the crucial earnings season for AI. The Dow Jones Industrial Average climbed 0.07% to 52,938.04, while the S&P 500 rose by 0.73% to 7,537.75, and the Nasdaq Composite gained 1.25% to 26,155.56. The MSCI index of global stocks rose 0.45% to 1,128.87. Global AI continued to dominate the markets. South Korean chipmaker SK Hynix 00660.KS launched a U.S. shares sale on Monday to raise 43 trillion won (28.07 'billions) and received interest from up to $7 billion of major investors. Broadcom also announced that it has expanded its partnership to Apple for the development and supply of?custom chips until 2031. Microsoft announced that it would cut 4,800 jobs worldwide, or 2.1% of the global workforce. Investors are watching closely to see how companies that deal with artificial intelligence fare amid fears of a bubble during the upcoming earnings period. Delta Air Lines, PepsiCo and other big names in the U.S. are reporting earnings this week. Samsung Electronics will make a big splash on Tuesday, as analysts anticipate an 18-fold rise in profits. OIL SLIPS Oil prices fell but were still trading at levels similar to those seen before the Iran war. U.S. crude oil fell 0.55% to $68.31 per barrel while Brent dropped 0.51% to $71.75 a barrel. While the fractious U.S. - Iran peace talks have not progressed, there are ships passing through the Strait of Hormuz. 160 vessels were reported to have transited the Strait of Hormuz from Monday until Saturday last week. OPEC+ agreed to increase output targets from August by another 188,000 barrels a day. According to Institute for Supply Management data, the drop in oil prices appears to have provided some relief to private sector workers, as it has helped slow down the rate of service inflation. ISM reported a decline in the U.S. service sector's activity in June. However, employment increased after declining for three consecutive months. The U.S. president will be attending a NATO summit in Turkey this week. Fed watchers can get a glimpse of how the new chairman Kevin Warsh is leading the central bank when the Federal Open Market Committee releases its first minutes under his leadership on Wednesday. "We expect Warsh will make the FOMC Minutes less informative in terms of the views expressed during the FOMC Meetings. Warsh avoided 'policy guidance' in his statement and press conference. It seems unlikely that he will allow such guidance through a?minutes", Steve Englander wrote in a Standard Chartered Bank note. The yield on the benchmark U.S. 10 year notes increased 0.22 basis points to 4.481% from 4.479% at late Thursday. The dollar index rose by 0.07% on the currency markets to 100.94, after it had dipped in response to the weaker than expected June U.S. payrolls data released Thursday. As speculators tested the Japanese authorities' willingness to intervene, the dollar rose 0.53% at 162.23 yen. This is not far off from a 40-year high of 162.84 yen. Gold was down 0.56% at $4,152.11 per ounce, after having risen 2% the previous week. Reporting from Washington by Pete Schroeder; Editing by Jacqueline Wong and Stephen Coates. Will Dunham, Thomas Derpinghaus, Jacqueline Wong.
At least eight people are killed by storms in central China, as Typhoon Bavi threatens to strike offshore
State media reported that eight people died after a 'thunderstorm' hit central China’s Hubei Province. Forecasters warned of torrential rain in various parts of the country, which is home to 200 million people.
Xinhua, citing Hubei emergency management, reported that winds up to 149 kph (92.5 mph) slammed the cities of Huangshi and Huanggang as well as?Ezhou, Xianning and Xianning over a four-hour period on Monday night. National?Meteorological Center said that the southeast region of Guangxi, eastern provinces of Jiangsu, and Shandong, should prepare for heavy rains of up to 250mm over the next 24hours, which could trigger landslides. Other?areas in China's north and south can expect tornadoes.
Hubei and Shandong, two of China's most important agricultural provinces are affected by the heavy rains. Corn, peanuts, and vegetables are harvested later in the season, and are more susceptible to damage. Climate-driven weather extremes are causing tens billions in economic losses every year in China. Recent floods have flooded cities, disrupted industry and damaged crops. Meteorologists blame climate change for the extreme weather conditions.
China is also 'on alert' for Super Typhoon Bavi which is'making its way across to the Pacific Ocean and towards Taiwan. The National?Weather?Service of the United States said that it was packing winds up to 180 mph on Monday as it moved across Guam and Tinian. Saipan, Rota, and Saipan were also affected. (Reporting and editing by Stephen Coates; Reporting by Joe Cash)
(source: Reuters)