Latest News
-
Japan Defence Minister visits controversial Yasukuni Shrine for war dead
Shinjiro koizumi, the Japanese Defense Minister, visited on Saturday a shrine to Japan's war dead. The shrine is seen by Asian neighbors as a symbol of aggression during wartime. Images from local media showed Koizumi wearing a dark suit with a tie while visiting Yasukuni Shrine. He visited the shrine in the past, including last year as Agriculture Minister. According to NHK, Kimi Onoda visited the country on Saturday. According to the?state broadcaster CCTV, a spokesperson for the foreign ministry said that China strongly condemned the negative actions?by the Japanese regarding the Yasukuni Shrine. It had already lodged a solemn protest and made a formal representation. China and South Korea have claimed that visits by senior Japanese officials distort Tokyo's actions during the war and harm diplomatic relations. Among the 2,5 million war dead memorialized at the shrine in Tokyo are 14 leaders convicted by Allied tribunals of the worst war crimes. They also include over 1,000 'others' found guilty after Japan was defeated in 1945. Japanese officials explained that they made previous visits to honor those who had died in their nation's wars. Kyodo News Agency reported that Prime Minister Takaichi Sanae, who assumed the role in October last year, had sent a ritual gift to the shrine. Since Shinzo Abe visited Yasukuni Shrine in December 2013, the then-U.S. President Barack Obama expressed a sense of "disappointment" at his visit. In 2006, the older Koizumi was the last premier to visit Japan on the anniversary. Reporting by Sam Nusssey and Ziyi Tan in Tokyo; Editing by William Mallard
-
Japan Defence Minister visits controversial Yasukuni Shrine for war dead
Shinjiro Koizumi, the Japanese Defense Minister, visited a shrine on Saturday to honor Japan's war dead. The shrine is seen by Asian neighbors as a symbol of aggression during World War II. Images from local media showed Koizumi wearing a dark suit with a tie while visiting Yasukuni Shrine. He has been there before, including last year as Agriculture Minister. According to NHK, Kimi Onoda visited the country on Saturday. China and South Korea criticised previous visits by senior Japanese officials. They said that they glossed over Tokyo's actions during World War II and damaged diplomatic ties. Among the '2.5 million war-dead commemorated in the shrine at Tokyo are 14 leaders convicted by Allied tribunals of the worst war crimes. Over 1,000 other wartime leaders were also found guilty after Japan was defeated in 1945. Japanese officials have said that they made previous visits to honor those who had died in the nation's wars. Kyodo News Agency reported that Prime Minister Sanae Takaichi who assumed the role last October sent a ritual gift to the shrine. Since Shinzo Abe's visit to Yasukuni Shrine in December 2013, the then-U.S. President Barack Obama expressed disappointment at his visit. In 2006, the older Koizumi was the last premier to visit the country on the anniversary Japan's surrender. (Reporting and editing by William Mallard in Tokyo, Sam Nussey from Tokyo)
-
Two killed after 7.7 magnitude earthquake strikes off Indonesia
Authorities said that at least two people were killed after a 7.7-magnitude earthquake and dozens aftershocks hit eastern Indonesia early Saturday morning. In several parts of Southeast Asia, tsunami waves less than one metre high (3 feet) were recorded. About three hours after the earthquake, the tsunami warning was lifted. The disaster mitigation agency BNPB announced that in addition to at least two deaths, a person was also injured in Sikka Regency. A video posted on Facebook, which was verified as coming from a port near Maumere, shows that parts of a building collapsed as people ran and screamed in the street. This is the largest town on Flores Island, in the east part of Indonesia's vast island archipelago. Residents in several areas reported strong shaking lasting around one minute. It said that "most of the people felt shock and fled their homes." Kompas TV showed footage of a hospital in East Nusa Tenggara Province moving patients to the outside. Kompas.com also reported at least one land slide. The first earthquake was recorded at 4:58 am (2158 GMT), at a depth of?15 km (9 miles), and several aftershocks followed. The Australian tsunami warning centre stated that the undersea quake would "have no tsunami threat to?Australian islands, mainland or territories". Reporting by Dewi Kurniawati in Jakarta, Bernadette Cristina, Fransiska Naangoy, and Steffano sulaiman, Assitional reporting Carlos Mendez, Mrinmay Dey, and William Mallard in Mexico City; Writing by Josh Smith, Editing by Mark Porter and Lisa Shumaker
-
Police: Five dead in Michigan shooting; suspect found dead
Michigan State Police released a statement via social media that a man suspected of?shooting and killing five people in northern Michigan?on?Friday?was found dead after a manhunt. Police said that one victim remains hospitalized and in critical condition. Troopers responded to a call at 11:40 am. A report of an incident led police to a house in Missaukee County (Michigan) at 1540 GMT. The state police said that officers found three dead people and one wounded. The suspect, identified as 39-year old?Chad Hickman by the?police, fled before troopers arrived. This prompted a manhunt. Investigators found another victim dead at a different residence while searching for the suspect. Police said that they later located Hickman’s vehicle in a wooded region near Whitlock Lake. They found Hickman, along with another person, dead. The police statement quotes Lieutenant Ashley Miller as saying, "This situation is heartbreaking and difficult for the investigators." The police did not release names, ages, or genders of the victims. They said that notifications to the next-of-kin were in progress. (Reporting and editing by Sergio Non, Tom Hogue and Maria Tsvetkova)
-
Canadian minister says Canada, US far apart on draft trade deal, source says
Dominic LeBlanc told a 'committee of advisors' on Friday that Canada and the U.S. were still "far" from a draft deal, despite their regular meetings. This was according to an informed source. LeBlanc, his chief negotiator, and a team are in Washington for talks as the deadline for President Donald Trump's 50% tariffs approaches on August 19. LeBlanc met with U.S. Trade Representative Jamieson Greer four times in the last three weeks. LeBlanc’s office announced that he would be staying in Washington over the weekend to continue trade negotiations. Tariffs on Canadian goods worth nearly $20 billion would be imposed, or 5.2% of Canada’s exports to the U.S. The new tariffs would not apply to many of Trump's previous tariffs. Instead, they would be applied to products that qualify for preferential treatment as part of the U.S. Mexico-Canada Agreement. This poses an additional risk to Canada's economy. LeBlanc told the Advisory Committee on Canada - U.S. Economic Relations in a briefing that meetings with his U.S. counterparts are taking place on a daily bases, according to the source. The source stated that "they said they were quite far from an agreement the Prime Minister could sign." In negotiations such as these, nothing is decided until all the issues are resolved. Source added that LeBlanc had told the committee that both sides were meeting constantly at a technical-level but they haven't yet come to an agreement on major issues. Gabriel Brunet declined to comment. Candace Laing is the CEO of the Canadian Chamber of Commerce, and was a member of LeBlanc's advisory committee. She said that both sides were aiming to reach an interim agreement which would resolve some U.S. tariffs previously imposed and the 50% tariffs looming. She said that multiple meetings between the parties are planned for the weekend. LeBlanc briefed Canada’s provincial and territorial ministers of trade on the progress made in negotiations on Friday. The U.S. is concerned about Canadian tariffs on U.S. automobiles, disagreements regarding the allocation of?dairyquotas, and some Canadian provinces' refusal to stock U.S. alcoholic beverages. Canada wants U.S. steel and aluminum tariffs to be reduced. (Reporting and editing by Caroline Stauffer, Edmund Klamann and David Ljunggren)
-
Alphabet is Berkshire Hathaway’s third largest investment
Berkshire Hathaway announced on Friday that it increased 'the size of its investment in Alphabet by 83 percent during the second quarter, making the parent company of Google and YouTube the third largest stock holding. Berkshire Hathaway said that in a filing with the SEC, it had nearly 106,000,000 Alphabet shares valued at about $37.8billion as of June 30. This is up from 57.8million shares three months prior. This stake included a 10 billion dollar investment made in June to help Alphabet develop its AI infrastructure. Apple was Berkshire’s largest stock investment, valued at $66 billion by the end of June. American Express came in second at $51.3 billion. Bank of America and Coca-Cola were ranked fourth and fifth. Berkshire said that it had also eliminated its investment of a year and a half in alcoholic beverage producer Constellation Brands while increasing investments in Macy's, Delta Airlines, and Macy's. Berkshire disclosed the changes in a filing that described its U.S. listed stock holdings at June 30. These stocks accounted for most of Berkshire's $323.8 billion equity investment portfolio. BUFFETT CLAIMED CREDIT Berkshire purchased $23.5 billion in stock and sold $3.7billion of it during the second quarter. This ended a 14-quarter streak where it sold more than it bought. Greg Abel, the chief executive of Berkshire Hathaway, has started to reduce the huge cash pile left by his predecessor Warren Buffett when he stepped down from the company at the end of the year. Berkshire's stake in cash fell to $364.7 billion at the end of June, down from $380.2 on March 31. This decline was also due to stock buybacks worth $4.5 billion. Buffett is still chairman of Berkshire. He said to CNBC?last month that it was his idea for Berkshire to begin building a stake in Alphabet in the third quarter of last year. Buffett said that he and Abel also consult on the allocation of capital by Omaha-based Berkshire. SEVERAL TWEAKS In the second quarter, the Delta investment increased by 44% to 57.3 millions?shares valued at nearly $5.4 billion. The Macy's Investment more than doubled in value to 7.3 million shares. Berkshire bought additional shares in homebuilder Lennar, and revealed a tiny stake of $580,000 in D.R. Horton. It sold its shares in DaVita (a kidney dialysis provider), Bank of America, Capital One and Nucor, as well as in Kroger, the grocer, and Nucor, the steel manufacturer. Abel claimed in February that he was responsible for 94% of Berkshire’s stock holdings while Ted Weschler, Berkshire’s investment manager, handled the remaining 6%. The Friday filing does not mention who purchased and sold which stocks. Berkshire owns dozens of other businesses, including the BNSF railway, Geico auto insurance, energy companies, manufacturing firms, and retail brands like Brooks, Dairy Queen and Fruit of the Loom.
-
Jason Arday, former Cambridge professor at the centre of plagiarism scandal found dead
Jason Arday, former University of Cambridge Professor who was at the center of a plagiarism controversy, died today aged 41. Arday resigned as a professor of sociology and education earlier this month after the allegations, which caused a commotion in academia. He was the youngest Black professor at the university. Ambulance service found him unresponsive at a property located in Battersea south London. A 41-year old man was declared dead on the spot. The Metropolitan Police released a statement saying that his 'next of kin' had been notified and were being supported by police officers. At this time, his death is being treated a surprise but not as suspicious. Police said that officers from the Central South Command Unit of the Met are investigating the case. The University of Cambridge announced this week that it would be conducting an investigation into Arday's appointment to the Faculty of Education in 2022, and his subsequent time at the Faculty. A prominent professor who was often in the media this year, Arday faced accusations that some of his 2015 PhD dissertation had been plagiarized. He denied these allegations. Arday was accused of a wide range of allegations, including apparent inconsistencies with his other academic work and his claims regarding his career, personal life, and medical conditions. We are deeply saddened by this news. In a statement, Cambridge Vice-Chancellor Deborah Prentice expressed her deepest sympathies to Jason Arday's friends and family at this difficult time. Lucy Powell, Britain's education secretary, expressed her sadness at the death of Arday. The family expressed shock at the death of their loved one. The family stated that the 'campaign of misinformation' was too much for Jason. He was a 'gentleman and always wanted to see what was best in others. We won't say anything more at this time, except to ask the media to stop harassing Jason and his family. Reporting by Andy Bruce, Manchester; Editing Rosalba o'Brien
-
The US data that denies a Fed rate hike is based on the recent oil price rally.
?U.S. The U.S. and European markets fell on Friday, while oil prices rose by more than $1 a barrel as the markets watched the tense U.S. - Iran talks and digested recent data that lowered expectations of a Federal Reserve rate increase next month. Oil and gas prices are poised to make significant weekly gains due to the failure of talks that were supposed end "the Iran war". The U.S. has threatened to increase economic pressure against Iran, including by extending a navy blockade. A survey released on Friday showed that the U.S. consumer's sentiment declined in early August due to the cost of living rising because of the Middle East war. Gold prices were supported by a sudden drop in U.S. Retail Sales. The data has further reduced expectations for a Federal Reserve rate increase at the meeting next month. U.S. Treasuries dropped on Friday, after an initial rally driven by retail sales data failed to gain momentum. S&P 500 shares fell 0.17% to 7,785.76, a session low. This was due to the decline in shares of chip equipment maker Applied Materials. Broadcom, Intel and other chipmakers also fell. The Dow Jones Industrial Average fell 0.20%, to 53,732.41 while the Nasdaq dropped 0.28%, to 26,729.16. Thomas Martin, Senior Portfolio Manager at GLOBALT Investments Atlanta said: "A lot of the drivers on the market today revolve around different parts of AI." European shares ended lower on Friday, ending a four-week streak of?winnings' as rising crude oil prices and renewed geopolitical conflict offset the support provided by a robust earnings season. MSCI's global stock index fell by 0.79 points (or 0.07%) to 1,160.01. The broadest MSCI index of Asia-Pacific stocks outside Japan closed 0.29 percent higher at 1,640.08. GEOPOLITICAL RISK The markets ended the week with a positive note. There were few events on the corporate and economic calendar that could have a negative impact on the markets. It's Friday and, as is typical, geopolitical risk, or at the very least, bombastic rhetoric between the U.S. Rodda stated that "currently, geopolitical uncertainties remain the only major macro roadblock for a market which is experiencing strong tailwinds due to earnings and the outlook of monetary policy". Brent crude oil futures closed at $88.52 per barrel, an increase of 1.67%. U.S. Futures ended at $82.40 a barrel, an increase of 1.42%. John Sidawi is a senior portfolio manager at Federated Hermes for fixed income. He said that a feature of the markets over recent months was the growing disconnect between asset price volatility and geopolitical uncertainties. "For the moment, it appears that markets are willing to accept a considerable amount of uncertainty before demanding higher risk premiums. This equilibrium, however, is not likely to last forever," Sidawi stated. "A significant escalation of?conflict, or a clear pathway toward resolution, could finally force investors to leave the sidelines and trigger a larger volatility reaction than current market prices suggest." YEN STUCK IN INTERVENTION LOOPS In currencies, the Japanese yen gained 0.1% against the dollar to 159.33 after three sources who are familiar with the policymakers' thoughts said that the Bank of Japan may raise rates in September. The 160 level is still in sight, and traders believe that it could spark another round of yen purchases from Tokyo after a joint intervention with the U.S. Last month, the Japanese currency was not supported. The dollar index, which measures greenbacks against a basket including the yen, and euro, dropped 0.28%, to 99.65. Meanwhile, the euro rose 0.35%, at $1.1567. The spot price of gold increased by 0.53%, to $4,374.27 per ounce. U.S. gold contracts settled at $4,437.30, up 0.4%. The yield on the benchmark 10-year U.S. notes increased 4.72 basis points, to 4.688%.
The ROI-Iron Ore Industry Sees A Bright Future, But Green Steel Fades: Russell
Metals such as lithium, copper and rare earth elements, which are associated with the energy transition, have been the most consistently bullish commodities in recent years.
Iron ore miners want to add their product?to the list.
Steel demand in South and Southeast Asia is expected to remain robust and will more than offset the decline in production in China and Western Europe.
This was the consensus opinion at this week's industry meeting in Singapore.
The optimism of iron ore miners was not shared by those who advocated decarbonising the steel industry. They realised that green steel would be extremely expensive and shifted away from it.
The governments lack the will and ability to regulate, legislate and encourage a shift from using coal to make steel to renewable energy sources.
A LOOMING SUPPLY GLOBAL GAP
Iron ore prices are soaring due to the expectation that India's steel production will rise from 168 million metric tonnes a year at present to 400 million metric tonnes by 2035.
According to commodity analysts Kpler, India will be a net exporter in 2025, with 28.62 millions tons of exports against 13.87 million tonnes of imports.
India would have to import more steel if it doubles its production of steel in the next ten years. Its domestic industry is unable to produce enough ore that has a high iron content for economic viability.
It is also hoped that Southeast Asian nations such as Vietnam and Thailand, which are industrialising, will increase their steel production capacity. These countries will be heavily dependent on iron ore imported from other countries.
Bold Baatar, Rio Tinto's Chief Commercial Officer, told the Singapore Iron Ore and Steel Forum there was a supply gap of up to 650 million tonnes of iron ore by 2035.
This figure includes new mines, such as the 120-million-ton-per-year Simandou Project in Guinea that is currently in the process to start up.
Rio expects the rate of new mine development to be slower than the amount of tons lost as old mines are retired.
The fact that the majority of new steel capacity in Asia is being produced using the traditional blast-furnace-basic oxygen-furnace (BF-BOF method) is another factor which supports miners like Rio, the world's biggest producer of iron ore.
This method, which relies on metallurgical coke, is not only cost-effective but also highly pollution as it uses a proven technology.
The steel industry accounts for about 8 percent of the global carbon emissions. Decarbonisation is therefore vital if we are to achieve our climate goals of zero net emissions by 2050.
While steelmakers and miners are eager to decarbonise their operations, they are actually only aiming for the low-hanging fruits with plans to improve efficiencies and use high-grade iron ore.
GREEN SHOOTS FADE
To reduce emissions, it is necessary to switch from coal to hydrogen and use renewable electricity.
Green steel production has received very little investment.
Zhong Shaoliang (deputy secretary general of World Steel Association) told the Singapore Green Steel Forum on Wednesday that only 20 billion dollars have been invested to support green steel production.
The majority of the green steel produced in Europe will be 70.8 millions tons by 2030.
The planned green steel output represents less than 4%, given that the global steel production will be close to 2 billion tons per year by 2030.
There is currently no global standard of green steel. Carbon taxes, such as those in Europe's Carbon Border Adjustment mechanism are not widespread enough to encourage a significant shift towards green steel.
According to data from the World Steel Association, the current cost to?produce steel using the BFBOF method is $400 per ton.
The cost of a ton can be increased by between $500 to $850, depending on where the production takes place.
Only by regulating in favor of green steel can governments close the gap. They could do this by either taxing or subsidising production methods that are less carbon intensive.
There is little evidence that this is happening in Asia - the world's largest producer of steel, and engine of future growth.
You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X.
These are the views of the columnist, who is also an author. (Editing by Jan Harvey).
(source: Reuters)