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Japanese companies receive record-breaking proposals at shareholder meetings
This month, activist investors have made a record-breaking number of proposals for Japanese companies to vote on during their annual general meetings. They also include a growing call for executives to resign. The Tokyo Stock Exchange and regulators have been pushing Japanese companies for years to increase shareholder returns, invest in growth as well as win some big activist victories. According to the data compiled at Mitsubishi UFJ Trust Bank, as of June 3, 139 activist shareholder proposals were submitted for voting at AGMs. This is two more than in previous years. Most of the proposals were from foreign investors. Nineteen of these either oppose the appointment of a director nominated by the company or nominate another candidate for director. This is up from just seven proposals in 2024 and 14 last year. In any region, it's difficult for shareholder proposals to pass even though they often pressurize companies to reform. SquareWell Partners, a shareholder advisory firm, has compiled data that shows fewer than 1 in 20 proposals submitted since January 20, 2023, have been approved. It is true that activist ambitions grew after Oasis Management, a company with a long history of success, forced the ouster of Taiyo Holdings' CEO last year. Even if they were conducted in other ways, high-profile campaigns of?other activists have provided an important boost. The U.S.-based Elliott Investment Management won a landmark victory against Toyota over the terms of a purchase of a group company - an opposition campaign it waged by vocally criticizing them. KYOCERA VOTE IN THE FOCUS The activist investor's proposals are expected to garner attention. A shareholder vote on June 25 at Kyoto-based electronics manufacturer Kyocera will be one of them. Oasis has called for Goro Yamaguchi, the chairman of Kyocera, to resign. Previously, Oasis argued Kyocera needed to divest its unprofitable business and speed up restructuring. Seth Fischer said that Taiyo had the same problem (as Kyocera), where the CEO allocated capital to and announced a bad business, which was reducing the margins on the good business. Yamaguchi has been leading Kyocera, a Japanese company since 2017, and last year he received 63.8% shareholder votes. This is a very low number for a Japanese leader of business. It's also a big drop from his 79% vote in 2021. The board of Kyocera has rejected Oasis’ proposals. They have highlighted Yamaguchi's contribution to governance and management reforms. Oasis also calls on shareholders to vote against the leaders of Kadokawa, a publisher and gaming firm, Tokyo Steel, and SMS Recruitment. Kadokawa, SMS and Tokyo Steel's boards have rejected Oasis proposals. Tokyo Steel is yet to respond publicly. Fischer stated that "right now, an effective way to galvanize other investors and improve companies is to hold the management accountable for poor performances if they do not deserve to be voted back in," DOMESTIC ASSET MANAGERS ALSO HELPING Dalton Investments and other funds have also been vocal in this year's campaign. In several cases, they have proposed the appointment independent directors with capital market experience which they claim is lacking on the boards of firms such as probiotic drink manufacturer Yakult. UK-based AVI called on the president of 'tablet manufacturer Wacom' to step down citing concerns about governance and declining profits. Yakult's Board has rejected Dalton's proposal. Wacom's Board has also rejected the proposal to dismiss its president, but has suspended their relationship with a new?company that was set up by its president following AVI's campaigns. Asset managers in the United States are now more aggressive when it comes to capital allocation decisions, and profits of firms. This increases their chances of voting against leaders. The MUFJ Trust bank data revealed that they tend to vote against the management in particular when there is a low return on equity, or excessive cross-shareholdings. Ali Saribas is a partner at SquareWell Partners. He said that domestic managers are more likely to vote against the reelection of a director if something feels wrong.
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Asia markets plunge as technology rout intensifies
Asian markets fell on Monday, as investors put a halt to the AI rally. Meanwhile, the Israeli strike on Beirut sent oil prices and dollar up. The 'chip-heavy' KOSPI in South Korea took a beating. It fell more than 6.8% during volatile trading that had earlier caused a temporary halt of 20 minutes. The benchmark has fallen about 14% since last week's high. Japan's Nikkei dropped 3.4% in the early trading, but U.S. S&P and Nasdaq futures attempted a rebound following a Friday sharp selloff. Nasdaq dropped by 4.2% after Friday's hot jobs report fueled expectations of Federal Reserve rate hikes. Marc Velan is the head of investments for Lucerne Asset Management, a Singapore-based asset management firm. "Korean tech names were among the best performers in the world and heavily owned, so they became a source of liquidity when the rate expectations changed after the jobs report." The yield on two-year Treasury bonds rose by more than 11 basis point on Friday, and then?by 1.6 basis points to 4.1782% on Monday. Bob Savage is the head of BNY's?markets and macro strategy. The key question is whether this?is an opportune pause or a peak in the nine week equity rally. SpaceX and Anthropic's IPO focus is part of this pause - to either make room for a new market cap, or to rethink the value. INFLATION AND THE ECB Ahead This week, the focus will be on inflation, with U.S. consumer prices due to be released on Wednesday, and central bank meetings taking place in Canada and Europe. Bitcoin dropped by 16% last week, its biggest weekly decline since the collapse in 2022 of the crypto exchange FTX. On Monday, it was hovering just below $63,000. SpaceX's debut will be followed in the coming months by mega-IPOs from?Anthropic? and OpenAI?, which are expected to raise so much money that brokerages are worried it could pull down other assets. Nick Ferres of Vantage Point Asset Management, Singapore, said that the market has shifted away from moderate inflation, rate cuts, and towards a potential "overheating" which could lead to higher Treasury yields and a path for short-term rates, as well as tighter liquidity. The Middle East situation remains fragile. Brent crude futures rose about 2.6% to $95.45 per barrel on Monday after an Israeli attack on Beirut led Iran to fire a salvo of missiles on Israeli targets. OPEC+ decided on Sunday to increase its oil production targets for the fourth time in as many month. The dollar held firm above 160 yen in the currency market and the Australian dollar rose to $0.7055. The euro was hovering at $1.1531. Reporting by Tom Westbrook, Editing by Aurora Ellis & Shri Navaratnam
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The price of oil has risen by more than $2 since Israel's attack on Lebanon
Oil prices rose by more than $2 per barrel on Monday, after Israel launched new strikes against Lebanon on Sunday despite an agreement between the two nations. This shattered hopes of a ceasefire and the restart of crude flow through the Strait of Hormuz. As of 0013 GMT U.S. crude oil futures were up by $2.10 or 2.32% at $92.64 per barrel, while Brent crude rose by $2.33 or 2.5% to $95.42 per barrel. This erased a majority of Friday's losses, when prices fell on the hope of a deescalation of the U.S. - Iran conflict. The latest strikes seemed to be yet another obstacle to a U.S. - Iran peace?deal, and to the reopening of Strait of Hormuz a vital conduit for global 'oil and gas' flows. Iran has set a ceasefire in Lebanon as a precondition for a deal with Washington. Iran launched missiles against Israel in retaliation for the Beirut attacks on Hezbollah, its ally. U.S. president Donald Trump said that he would instruct Israeli Prime Minister Benjamin Netanyahu to refrain from retaliating against Iran. Israel invaded Lebanon in march after Hezbollah, backed by Iran, fired drones and rockets across the border. Lebanon and Israel announced on June 3, that they had reached a ceasefire after negotiations in Washington. Both countries had agreed in April to cease hostilities, but the violence continued. The wider war is on hold since the U.S., Israel and other countries stopped their attacks on Iran early in April. However, Tehran continues to block shipping through Strait of Hormuz. OPEC+ agreed to its fourth increase in output?in just four months on Sunday, amid the resulting?supply crisis. Analysts said that the decision will have little effect, as most OPEC+ countries cannot meet their production targets because of the Hormuz shutdown or infrastructure attacks in Russia. In a recent note, Jorge Leon, Rystad's head of geopolitical analyses said that the impact of such a move would be "close to zero" in the current market. (Reporting and editing by Edmund Klamann, Christopher Cushing, and Colleen Waye)
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Asia markets plunge as technology rout intensifies
Asian markets fell on Monday, as investors slammed on the brakes to the AI rally. Meanwhile, the oil price and dollar rose due to the Israeli strikes in Beirut. A 8% decline in South Korea's chip heavy?KOSPI triggered a trading halt for 20 minutes?and has it down 17% since its record high last week. Japan's Nikkei dropped 3.5% in the early trading, while U.S. S&P500 and Nasdaq100 futures saw small gains. After a strong jobs report, which raised expectations of Federal Reserve interest rate hikes, the Nasdaq fell 4.2%, with most selling concentrated on semiconductor stocks. This put a halt to what had been an AI-led rally. The yields on two-year Treasury bonds rose by more than 11 basis points last Friday. Benchmark 10-year Treasury futures fell about five ticks in the early morning hours of Monday morning, Asia. Bob Savage is the head of BNY's macro-markets strategy. The key question is whether this is a "healthy pause" in the nine week equity rally, or a peak. IPO attention on SpaceX and 'Anthropic' is part of a pause - to either make room for a new market cap, or to rethink the value. INFLATION AND THE ECB Ahead The biggest news of the week is likely to be the SpaceX listing. It will price on Thursday, and trade on Friday. But inflation will also be a major topic, with U.S. Consumer Price Data due on Wednesday, and central bank meetings in Canada, Europe, and elsewhere. Bitcoin dropped by about?16% last week, its biggest weekly decline since the collapse in 2022 of crypto exchange FTX. On Monday, it was just above $63,000. Brokers are worried that the IPO of SpaceX could cause other assets to fall in value. The Middle East situation remains fragile. Brent crude futures were up 2.6% on Monday to $95.45 per barrel after an Israeli strike on Beirut led Iran to fire a volley of missiles on Israeli targets. OPEC+ decided on Sunday to increase its oil production targets for the fourth time in a row. The dollar held firm above 160 yen in the currency market and the Australian dollar rose to $0.7038. The euro was hovering at $1.1518. Reporting by Tom Westbrook, Editing by Aurora Ellis & Shri Navaratnam
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Asia markets prepare for sales after Wall Street tech crash
The Asian markets are expected to fall Monday as Wall Street's nine week winning streak in tech sales ends. Meanwhile, the Israeli strikes on Beirut have sent oil and dollar prices higher. Futures and the U.S. exchange-traded funds' moves on Friday pointed to sharp drops in Japan and South Korea. S&P 500 futures fell 0.2% early in Asia. After a strong jobs report, which raised expectations of Federal Reserve rate hikes, the Nasdaq fell 4.2%, with most selling concentrated on semiconductor stocks. This put a halt to what had been an exciting?AI-led rise. The yield on the two-year Treasury rose by more than 11 basis point on Friday, and the benchmark 10-year Treasury futures were down about five ticks on Monday morning. Bob Savage is the head of BNY's markets macro strategy. He said that "the AI-drives everything narrative frayed in the last week." The key question is whether this is a healthy break in the nine week equity rally, or a top. The IPO focus of SpaceX and Anthropic 'is part of the pause - to make space for the new market capital or to rethink the value." This week, the biggest news is likely to be the SpaceX listing. It's expected that it will price on Thursday, and then trade on Friday. But, inflation will also be a major topic, with U.S. consumer prices due on Wednesday, and central bank meetings taking place in Canada and Europe. Bitcoin dropped by 16% last week, its biggest weekly decline since the collapse in 2022 of the crypto exchange FTX. It was hovering around $63,000 on Sunday. Brokers are worried that SpaceX's IPO could cause other assets to fall in value. The Mideast situation remains fragile, and Brent crude futures rose 2.6% on Monday to $95.45 per barrel after an Israeli strike on Beirut led?Iran? to fire a salvo? of missiles? at Israeli targets. OPEC+ has agreed to a fourth increase in oil production targets in just a few months. The dollar held firm above 160 yen in the currency market and the Australian dollar rose to $0.7038. The euro was hovering at $1.1518.
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China dominates low-carbon industrial projects, US lags, report says
A report on Monday said that the number of low-carbon projects which have received funding in the past six months has increased by more than twofold, to 19 projects, worth $43 billion. The majority of these are located in China. A report by Mission Possible Partnership stated that 13 projects, from methanol and aluminium to methanol, reached a decision on investment between November and April. Only one project was in the U.S. It added that eight projects were funded in the same period last year. The green industrial investment boomed during the time when Israel and the U.S. attacked Iran, driving up the price of fossil fuels. Faustine Delasalle is the CEO of MPP. She said, "In an increasingly fragmented and unstable environment, fossil fuel dependence has repeatedly shown to be a source of price shocks and supply disruptions as well as economic crises." The MPP, a non-profit organization based in the United States that aims to?boost the growth of low emission industry is supported by both the Bezos Earth Fund as well as the World Economic Forum. Total pipeline of low-carbon industrial project announcements?is 969? in sectors such as chemicals, aviation and metals. China is responsible for 170 out of the announced projects. Other countries in the "sunbelt", such as India and Brazil, have 318. Europe has 211, and the United States has 72. The United States has a large pipeline of projects, but is losing momentum, according to the report. It also noted that over the past 12 months, there were 20 fewer announced projects than in 2012. Reporting by Eric Onstad, Editing by Chris Reese
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Russian drone strikes nuclear fuel storage facility near Chornobyl in Ukraine
Ukrainian officials said that a 'Russian drone' had struck a storage area for spent nuclear fuel near Ukraine’s now-disused Chornobyl plant. They added that the radiation levels remained stable. Separately, the Kyiv General Staff and state atomic agency stated that a container-receiving facility?had partially been destroyed, but no spent fuel had been stored at the time of?attack. The fire that resulted was put out and there were no reported injuries. Russia has not publicly commented on the alleged attack?on the facility which is located?around 15 km (9miles) away from the Chornobyl Plant, the site where the world's biggest nuclear disaster occurred. Andrii Sybiha, Ukrainian Foreign Minister, wrote on X: "This isn't the first time Russian forces have put Ukrainian nuclear facilities in danger." "Russia's nuclear blackmail and threats against nuclear safety are systematic, deliberate, and inacceptable." A Russian drone attacked a containment 'arch that was over the Chornobyl reactor in February 2025. The 'arch had been destroyed by the explosion and meltdown of April 1986. ?Russia denied responsibility. Kyiv has also accused Moscow of attempting to attack the largest nuclear power plant in Europe, Zaporizhzhia Nuclear Power Plant located in southeast Ukraine. (Reporting and editing by Tomaszjanowski).
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Embraer observes that airlines are delaying their decisions about plane purchases due to the Iran war
Embraer CEO Francisco Gomes Neto said 'on Saturday that some airlines are delaying their decisions on whether or not to exercise their aircraft purchase options due to a lack of certainty over the war in Iran. This uncertainty has led to a rise in 'jet fuel prices. Gomes Neto, the Brazilian planemaker, noted that while there have been no requests to delay deliveries or slowdowns in active sales campaigns he was noticing a growing caution around incremental commitments. He said that some companies who could exercise previously signed options were delaying that to better understand the?evolution of the situation. Embraer has a commercial backlog of nearly five years worth of deliveries. The company is pursuing multiple sales campaigns to sell its E2 family and hopes to close some deals next month at the Farnborough airshow in the United Kingdom. Embraer wants to capitalize on recent agreements, including those with Finnair and Azorra. It believes that the E2 family's fuel-efficiency can increase demand. Gomes Neto stated that several campaigns are currently underway, and the timing of any potential deals is heavily dependent on the customers. "I'm not sure if the commercial aviation sector will have a strong year like last year, but I think it should be good." Embraer is aiming to increase its output. The company has set an internal goal of delivering between 95 and100 commercial aircraft by 2027. This year, the?outlook is between 80 and85 planes. Gomes Neto said that the goal is more dependent on smoother supply chains than it is on geopolitical tensions such as the Iran war being resolved. He said that the bottlenecks in the industry, which have been present since the pandemic, are slowly improving. He added, "It is about getting the?cadence correct." Embraer is also looking to improve margins within its commercial aviation division. Gomes Neto stated that the company has renegotiated older contracts with lower profitability, and is expecting a stronger demand for new agreements to support better pricing.
SCENARIOS: India-US tariff standoff - What are New Delhi’s options and risk?
India will likely be one of the worst-hit countries by Donald Trump's trade war, as tariffs on Indian imports are set to increase to 50% if no deal is reached in three weeks.
Here are some options that India can use to address the crisis.
Negotiate further. India was expected as one of the first countries in line to sign a deal with Trump’s team. However, after five rounds of talks over disagreements about opening India's dairy and farm sectors and stopping Russian purchases of oil, negotiations fell through.
New Delhi is reacting strongly to the tariff of 50% on U.S. imported goods from India. This could effectively stall trade. Indian officials remain hopeful that the closed-door discussions will resolve some of their differences. A U.S. Trade team is expected in the Indian capital at the end of this month. The Prime Minister Narendra Modi stated on Thursday that, while he did not mention the tariffs in his remarks, he was willing to "pay a high price" to ensure the welfare of India's dairy sector, farmers and fishermen.
Indian officials have stated that they are willing to reduce tariffs on some U.S. dairy and farm products, such as almonds and cheese.
CUT RUSSIAN IMPORTS India is the third largest oil importer in the world. It has previously stated that it would find alternative oil sources if Russia's imports became unworkable due to sanctions, or for other reasons. The country bought very little Russian oil prior to the Ukraine conflict that began in 2022. But now, it gets over a third its oil imports through its old trade partner and defense partner.
Reports from late last month indicated that Indian refiners, such as Indian Oil and Hindustan Petroleum as well as Bharat Petroleum, Mangalore Refinery Petrochemical and Mangalore Refinery Petrochemical, had stopped purchasing Russian oil due to the shrinking discounts and increasing pressure by Trump. Officials have warned, however, of global price spikes without Russian oil on the market.
Other big suppliers of goods to India include Iraq, Saudi Arabia, and the United Arab Emirates. These are all part of annual agreements that allow for the flexibility to order more supplies every month.
India imports goods from around 40 countries, which includes the United States.
Band Together with Other Developing Countries
Brazil is also a major target of Trump's tariffs, along with India. Both countries are founding members in the BRICS group, which also includes China and Russia. Brazilian President Luiz Inacio Lula da Silva who currently holds the BRICS presidency said that he will call Modi and China's Xi Jinping on Thursday, and then other leaders to discuss how the BRICS bloc would respond to tariffs.
A source in the Indian government said that India must gradually repair its ties with the U.S., while also engaging with other nations who have been affected by Trump's tariffs on aid and his cuts to the African Union.
India has already made some moves with Russia and China.
The Indian national security advisor is currently in Moscow, and the Foreign Minister will follow. This is ahead of President Vladimir Putin's anticipated visit to New Delhi later this year. Russia announced on Tuesday that the two countries had discussed a further strengthening of defence cooperation in the form "of a particularly priviledged strategic partnership".
India has also increased engagement with China. This is a significant change from the years of tensions that followed a border clash in 2020. Modi will visit China for the first since 2018, for a summit of a security conference in the region. This could be the first meeting between Modi, Putin, and China's Xi Jinping.
Recently, the Indian Defence and Foreign Ministers visited China.
What are the consequences for India if talks fail?
India exported goods worth around $87 billion to the United States in the fiscal period ended March 2025, including garments. About 2% of India’s GDP is accounted for by these products.
The proposed duty of 50% on Indian goods may result in the pharmaceutical exports from India being the only ones still sent to the U.S.
Not just trade will be at risk. Analysts predict tensions will spill over into areas such as work visas and offshoring services. India has been a major beneficiary from U.S. visa programs and outsourcing of business and software services. This is a source of frustration for Americans, who have lost their jobs because of cheaper workers in India. Reporting by Krishna N. Das in New Delhi, Nidhi verma, Manoj kumar and Aftab ahmed, with editing by Raju Gopalakrishnan
(source: Reuters)