Japan stocks jump, bonds slide after Trump says trade deal reached
The Nikkei leapt 2 per cent in early trading, with the Tokyo Stock Exchange's transport equipment index surging 7 per cent. Toyota Motor soared 10 per cent.
Benchmark 10-year Japanese bond futures tumbled as much as 0.92 yen to 137.68 yen, the lowest since March 28.
Trump on Tuesday said the U.S. and Japan had struck a trade deal that includes a 15 per cent tariff that will be levied on U.S. imports from the Asian country.
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Business Times
21 minutes ago
- Business Times
US prepares to allow limited oil operations in Venezuela, starting with Chevron, sources say
[HOUSTON] The United States is preparing to grant new authorisations to key partners of Venezuela's state-run PDVSA, starting with Chevron, to allow them to operate with limitations in the sanctioned Opec nation and swap oil, five sources close to the matter said on Thursday. If granted, the authorisations to the US oil major, and possibly also to PDVSA's European partners, would mark a policy shift from a pressure strategy Washington adopted this year on Venezuela's energy industry, under US sanctions since 2019. President Donald Trump's administration might now allow the energy companies to pay oilfield contractors and make necessary imports to secure operational continuity. Some imports could be swapped for Venezuelan oil, as authorised in previous licenses, three of the sources said. A senior State Department official said in a statement they could not speak about any specific licenses to PDVSA's partners, but added the United States would not allow President Nicolas Maduro's government to profit from the sale of oil. A source in touch with US and Venezuelan officials said it was difficult to understand how Maduro's government would not benefit from cargoes Chevron can sell to the US, and later on Thursday Maduro hailed work done to keep Chevron in the country. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'There are already working groups so that Chevron can re-incorporate its functions,' Maduro told an interview with Telesur, adding that Chevron's top leadership had already been informed of licenses so it can keep operating in Venezuela. Chevron shares touched US$155.93 on Thursday, their highest level since April 3, according to LSEG data. 'Chevron conducts its business globally in compliance with laws and regulations applicable to its business, as well as the sanctions frameworks provided for by the US government, including in Venezuela,' a company spokesperson said. The move to ease some restrictions on Venezuela's oil sector follows a prisoner swap this month in which Maduro released 10 American detainees while accepting the return of more than 200 Venezuelans who had been deported from the US and held in an El Salvador prison. Relations between the two countries have been tense for years, and the Trump administration has publicly supported opposition leaders who say their candidate won last year's election, not Maduro. Trump in February announced the cancellation of a handful of energy licenses in Venezuela, including Chevron's, and gave until late May to wind down all transactions. The move left all operations in oil and gas joint ventures with Chevron and other partners in PDVSA's hands, but the companies were authorized to preserve their stakes and output remained almost unchanged. The US State Department, which in May blocked a move by special presidential envoy Richard Grenell to extend the licenses, is this time imposing conditions on any authorization modifications, so that no cash reaches Maduro's coffers, the three sources said. In the past, US officials have promised no money would reach Maduro from oil proceeds despite licenses. But it did because PDVSA demands tax and royalties to be paid before granting exports permits. Even if parties agree to oil swaps, those arrangements save PDVSA, and ultimately Maduro's government, millions of dollars per year in imports. Secretary of State Marco Rubio is not expected this time to ban the authorisations, but is negotiating their scope, they added. It was not immediately clear if the terms of the license that could be granted to Chevron would be reproduced for other foreign companies in Venezuela, including Italy's Eni and Spain's Repsol, which have been asking the US to allow them to swap fuel supplies for Venezuelan oil. The authorisations might remain private, one of the sources said. The US Treasury Department's Office of Foreign Assets Control and PDVSA did not immediately respond to requests for comment. Where will the oil go? Following the cancellation of Chevron's license earlier this year, Trump announced the imposition of secondary tariffs on buyers of Venezuelan oil. But the measure, expected to severely hit Venezuela's main crude buyer China, has not been enforced, allowing the South American country to divert to Asia crude grades that were previously sold to US and European refiners through PDVSA's joint-venture partners. The reshuffle, which has maintained Venezuela's oil output and exports close to the levels they were at before the license cancellations, has been criticised by politicians in Washington and was discussed as part of talks for the new authorisations, the sources said. During former US President Joe Biden's administration, targeted licenses to PDVSA's partners allowed Western refiners to regain access to Venezuelan supplies, but they also granted a stable source of cash to Maduro's administration as the companies were required by Venezuela to pay royalties and taxes. REUTERS
Straits Times
an hour ago
- Straits Times
US regulator approves $10.7 billion Paramount-Skydance merger
Find out what's new on ST website and app. Approval came after the Trump administration extracted concessions on political coverage and diversity practices. LOS ANGELES – The US$8.4 billion (S$10.7 billion) merger between Paramount Global and Skydance Media won approval from the US regulator on July 24, clearing the way for a sale that evolved into a clash over press freedom in the era of President Donald Trump. The deal will put well-known entertainment properties including the CBS broadcast television network, Paramount Pictures, and the Nickelodeon cable channel under the ownership of tech scion David Ellison, son of Oracle co-founder Larry Ellison. Paramount in July paid US$16 million in a controversial move to settle a lawsuit Mr Trump filed against the company and CBS News, sparking accusations it effectively had paid for approval of the merger. The Federal Communications Commission approved the deal in a partisan 2-1 vote that allows the transfer of CBS television stations. FCC chairman Brendan Carr, an appointee of Republican Trump, said the agency had received assurances from the incoming owners that they were committed to unbiased journalism. Democrat Anna Gomez, the FCC's sole dissenter, accused Paramount of 'cowardly capitulation' to the Trump administration. She also said the FCC was imposing 'never-before-seen controls over newsroom decisions.' CBS News was one of several news organisations Trump attacked for what he viewed as unfavourable coverage. Paramount paid Mr Trump to end a lawsuit he filed over CBS' editing of a '60 Minutes' interview with his Democratic opponent, Kamala Harris. Mr Trump, who often accuses media outlets of liberal bias and 'fake news,' argued that the editing was designed to make Ms Harris look good. First Amendment lawyers said the suit was without merit. Top stories Swipe. Select. Stay informed. Business GIC posts 3.8% annualised return over 20 years despite economic uncertainties Business GIC's focus on long-term value aims to avoid permanent loss amid intensifying economic changes Opinion No idle punt: Why Singapore called out cyber saboteur UNC3886 by name Asia Cambodia and Thailand are willing to consider ceasefire: Malaysian PM Anwar Asia Deadly Thai-Cambodian dispute puts Asean's relevance on the line Business MAS' measures spark cautious optimism for Singapore stock market revival: Analysts World Trump and Fed chief Powell bicker during tense central bank visit Life Hulk Hogan, who helped turn pro wrestling into a billion-dollar spectacle, dies at 71 Mr Carr has said the agency's review of the proposed merger was not connected to the lawsuit. Senators Edward Markey of Massachusetts and Ben Ray Luján of New Mexico said the merger 'reeks of the worst form of corruption,' coming on the heels of Paramount's settlement. The commission received pledges from Skydance that it would appoint an ombudsman to evaluate complaints of editorial bias or other concerns about CBS. Skydance also told the FCC it would not establish any diversity, equity, and inclusion initiatives, which Mr Trump believes are discriminatory. 'These commitments, if implemented, would enable CBS to operate in the public interest,' Mr Carr said, who also hailed 'another step forward in the FCC's efforts to eliminate invidious forms of DEI discrimination.' 'The Late Show' host Stephen Colbert had called Paramount's settlement 'a big fat bribe.' His show was cancelled days later in what Paramount called a financial decision unrelated to politics. It marks the end of an era for the family of the late Sumner Redstone, who transformed the family's chain of drive-in movie theatres into a media empire that once spanned broadcast and cable television, film, radio and publishing. His daughter Shari Redstone became chair of Paramount in 2019. At the time, she hoped to better position the company to compete with the world's entertainment giants. Paramount has since shed billions of dollars in market valuation as it struggled to navigate an entertainment business upended by the streaming video revolution. The FCC approved the transaction after a review of more than 250 days, longer than the commission's target of completing such reviews within 180 days. Skydance chief executive officer Mr Ellison is poised to become chair and chief executive of the new Paramount. Jeff Shell, former chief executive of Comcast's NBCUniversal, will be its new president. Chris McCarthy, one of Paramount's current trio of CEOs has decided to depart the company once the merger is completed, a source with knowledge of the matter said. REUTERS
Straits Times
an hour ago
- Straits Times
Trump says Australia has agreed to accept American beef
Meat from animals born, raised and slaughtered in the US has been allowed into Australia since 2019. WASHINGTON - Australia has agreed to open its market to American beef, US President Donald Trump said on July 24, after the US ally eased restrictions on imports that had angered the American leader. The Trump administration hailed the deal, announced by Australia earlier on July 24, as a win, even as analysts said the step was unlikely to significantly boost US shipments because beef prices are much lower in Australia. 'The other Countries that refuse our magnificent Beef are ON NOTICE,' Mr Trump said in a post on Truth Social on July 24. Since returning to the White House in January, Mr Trump has attempted to renegotiate trade deals with multiple countries who he asserts have taken advantage of the United States over the years. Many economists have disputed Mr Trump's characterisation. Australia Agriculture Minister Julie Collins said earlier on July 24 that a 'rigorous science and risk-based assessment' had concluded that US measures to monitor and control the movement of cattle meant biosecurity risks that Australia was previously concerned about were being effectively managed. Meat from animals born, raised and slaughtered in the US has been allowed into Australia since 2019. But few suppliers were able to prove their animals had been only in the US, because cattle frequently moved between the US, Canada and Mexico without being adequately tracked. US Trade Representative Jamieson Greer said in a statement welcoming the move that Australia had imposed 'unjustified barriers' on US beef that were now being lifted. 'American farmers and ranchers produce the safest, healthiest beef in the world. It's absurd that non-scientific trade barriers prevented our beef from being sold to consumers in Australia for the last 20 years,' Agriculture Secretary Brooke Rollins said in the same statement. Top stories Swipe. Select. Stay informed. Business GIC posts 3.8% annualised return over 20 years despite economic uncertainties Business GIC's focus on long-term value aims to avoid permanent loss amid intensifying economic changes Opinion No idle punt: Why Singapore called out cyber saboteur UNC3886 by name Asia Cambodia and Thailand are willing to consider ceasefire: Malaysian PM Anwar Asia Deadly Thai-Cambodian dispute puts Asean's relevance on the line Business MAS' measures spark cautious optimism for Singapore stock market revival: Analysts World Trump and Fed chief Powell bicker during tense central bank visit Life Hulk Hogan, who helped turn pro wrestling into a billion-dollar spectacle, dies at 71 The US has been improving its ability to monitor animals' movements to limit the spread of avian influenza and the New World screwworm, a parasite that eats cattle alive. Recognising those improvements, Australia will now also accept beef sourced from cattle born in Canada or Mexico and legally imported and slaughtered in the US, the Australian agriculture ministry said. Australian firms will be able to apply for import permits from July 28, it added. REUTERS
