US: Stocks rise again on more benign Trump tone on China
Equities spent the entire day in positive territory as market watchers also pointed to Trump's statements that he had no plans to fire Federal Reserve chair Jerome Powell.
The Dow Jones Industrial Average finished up 1.1 per cent at 39,606.57.
The broad-based S&P 500 rose 1.7 per cent to 5,375.86, while the tech-rich Nasdaq Composite Index jumped 2.5 per cent to 16,708.05.
A day after the International Monetary Fund lowered its global growth outlook the Federal Reserve's Beige Book of economic conditions said the economic outlook had 'worsened considerably' in several US districts due to uncertainty about tariffs.
But markets are rallying on 'any headline that's less negative on trade', said Art Hogan of B Riley Wealth Management.
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'We have moved into a slightly more positive position but we still don't know what the endgame will be on trade,' Hogan said.
On Wednesday, Treasury Secretary Scott Bessent told reporters Washington is 'not yet' speaking with Beijing on tariffs, calling today's prohibitively high levies from both countries not 'sustainable'.
Among individual companies, Boeing rose 6 per cent as it reported a smaller-than-expected loss while confirming 2025 targets to raise commercial plane production.
Tesla shot up 5.4 per cent despite reporting weaker-than-expected earnings as CEO Elon Musk announced he would shift his attention back to the electric carmaker, reducing his time spent on Trump's so-called Department of Government Efficiency.
Other large tech equities also pushed higher. Amazon rose 4.3 per cent, Facebook parent Meta won 4 per cent and Microsoft climbed 2.1 per cent. AFP
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Business Times
2 minutes ago
- Business Times
Trump arrives in Scotland for golf and bilateral talks as EU trade deal nears
[EDINBURGH/LONDON] US President Donald Trump, dogged by questions about his ties to disgraced financier and sex offender Jeffrey Epstein, arrived in Scotland on Friday (Jul 25) for some golf and bilateral talks that could yield a trade deal with the European Union. Trump told reporters upon his arrival that he will visit his two golf properties in Scotland and meet with British Prime Minister Keir Starmer and European Commission President Ursula von der Leyen, whom he called a 'highly respected woman'. As hundreds of onlookers cheered his arrival, Trump repeated his earlier comment about a 50-50 chance of securing a deal with the EU, adding it would be his administration's biggest trade agreement thus far, if it came together. However, he said there were still 'sticking points' with Brussels on 'maybe 20 different things'. Trump said his meeting with Starmer would be more of a celebration of the trade deal already reached than continued work on it, adding: 'It's a great deal for both.' Before he left Washington, Trump said his administration was working hard on a possible trade deal with the EU, and Brussels was keen to make a deal. Von der Leyen said later she would meet Trump in Scotland on Sunday. EU diplomats say a deal could result in a 15 per cent tariff on EU goods, mirroring a framework accord with Japan reached this week and half of the 30 per cent Trump is threatening to impose by Aug 1. 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 Trump has sought to reorder the global economy after imposing a 10 per cent tariff on nearly all trading partners in April and threatening sharply higher rates for many countries to kick in a week from now. Trump says the moves will reduce the US trade deficit and bring in extra revenue, but economists warn the new trade policies could drive up inflation. 'Don't talk about Trump' Trump, facing the biggest domestic political crisis of his second term, expressed frustration about ongoing questions about his administration's handling of investigative files related to Epstein's criminal charges and his 2019 death in prison. 'You make it a very big thing over something that's not a big thing,' Trump told reporters in Scotland, urging them to focus on other prominent Americans with ties to Epstein, including former president Bill Clinton. 'Talk about Clinton. Talk about the former president of Harvard. Talk about all of his friends. Talk about the hedge fund guys that were with him all the time. Don't talk about Trump,' he said. 'What you should be talking about is the fact that we have the greatest six months in the history of a presidency.' The Epstein issue has caused a rare breach with some of Trump's most loyal Make America Great Again supporters, and majorities of Americans and Trump's Republicans say they believe the government is hiding details on the case, according to Reuters/Ipsos polling. White House officials are hoping the controversy dies down while Trump is abroad, two sources familiar with the matter said. Deepen ties Trump will stay at his Turnberry property on Scotland's west coast this weekend, before travelling on Monday to a golf property in Aberdeen, where he will open a second 18-hole course named in honour of his mother, Mary Anne MacLeod. MacLeod was born and raised on a Scottish island before emigrating to the US. As he left the White House, Trump said he looked forward to meeting both Starmer and Scottish leader John Swinney, who had publicly backed Democratic candidate Kamala Harris in the 2024 US presidential election. The trip gives Trump and Starmer a chance to deepen their already warm ties, with key issues on the agenda to include ending Russia's war in Ukraine, British and US sources said. The deteriorating situation in Gaza is also likely to come up. Starmer on Thursday said he would hold an emergency call with France and Germany over what he called the 'unspeakable and indefensible' suffering and starvation being reported there, and called on Israel to allow aid to enter the Palestinian enclave. Gaza health authorities say more than 100 people have died from starvation, most in recent weeks. Human rights groups have said mass starvation is spreading even as tons of food and other supplies sit untouched just outside the territory. Since being elected last year, Starmer has prioritised good relations with Trump, stressing the importance of Britain's defence and security alliance with the US, while working to clinch the first tariff-reduction deal with the US in May. The framework agreement reaffirmed quotas and tariff rates on British automobiles and eliminated tariffs on the UK's aerospace sector, but left steel tariffs in place. Starmer is expected to press for lower steel tariffs, but sources close to the matter said it was unclear if any breakthrough was possible during Trump's visit. Trump has described Scotland as a 'very special place' and made a similar trip there in 2016 during his earlier run for the presidency, but he will not necessarily get a warm welcome. About 70 per cent of Scots have an unfavourable opinion of Trump, while 18 per cent have a favourable opinion, an Ipsos poll in March found. Scottish police are girding for protests on Saturday in both Aberdeen and in Edinburgh, the country's capital. Trump will return to Britain from Sep 17 to 19 for a state visit hosted by King Charles. It will make Trump the first world leader in modern times to undertake two state visits to Britain. The late Queen Elizabeth hosted him at Buckingham Palace for a three-day state visit in June 2019. REUTERS
AsiaOne
2 minutes ago
- AsiaOne
Trump administration to release over $6.4b school funding that it withheld, World News
WASHINGTON — President Donald Trump's administration will release more than US$5 billion (S$6.4 billion) in previously approved funding for K-12 school programs that it froze over three weeks ago under a review, which had led to bipartisan condemnation. Key quotes "[The White House Office of Management and Budget] has completed its review ... and has directed the Department to release all formula funds," Madi Biedermann, deputy assistant secretary for communications at the US Education Department, said in a statement, adding funds will be dispersed to states next week. Further details on the review and what it found were not shared. A senior administration official said "guardrails" would be in place for the amount being released, without giving details. Why it's important Early in July, the Trump administration said it would not release funding previously appropriated by Congress for schools and that an initial review found signs the money was misused to subsidize what it alleged was "a radical leftwing agenda". States say US$6.8 billion in total was affected by the freeze. Last week, US$1.3 billion was released. Context After the freeze, a coalition of mostly Democratic-led states sued to challenge the move, and 10 Republican US senators wrote to the Republican Trump administration to reverse its decision. The frozen money covered funding for education of migrant farm workers and their children; recruitment and training of teachers; English proficiency learning; academic enrichment and after-school and summer programs. The Trump administration has threatened schools and colleges with withholding federal funds over issues like climate initiatives, transgender policies, pro-Palestinian protests against US ally Israel's war in Gaza and diversity, equity and inclusion practices. Reaction Republican US lawmakers welcomed the move on Friday (July 25), while Democratic lawmakers said there was no need to disrupt funding in the first place. Education Secretary Linda McMahon separately said she was satisfied with what was found in the review and released the money, adding she did not think there would be future freezes. ALSO READ: Harvard battles Trump administration in court over cancelled funding
AsiaOne
2 hours ago
- AsiaOne
Netanyahu, Trump appear to abandon Gaza ceasefire negotiations with Hamas, World News
JERUSALEM/WASHINGTON/CAIRO — Israeli Prime Minister Benjamin Netanyahu and US President Donald Trump appeared on Friday (July 25) to abandon Gaza ceasefire negotiations with Hamas, both saying it had become clear that the Palestinian militants did not want a deal. Netanyahu said Israel was now mulling "alternative" options to achieve its goals of bringing its hostages home from Gaza and ending Hamas rule in the enclave, where starvation is spreading and most of the population is homeless amid widespread ruin. Trump said he believed Hamas leaders would now be "hunted down", telling reporters: "Hamas really didn't want to make a deal. I think they want to die. And it's very bad. And it got to be to a point where you're going to have to finish the job." The remarks appeared to leave little to no room, at least in the short term, to resume negotiations for a break in the fighting, at a time when international concern is mounting over worsening hunger in war-shattered Gaza. French President Emmanuel Macron, responding to the deteriorating humanitarian situation, announced that Paris would become the first major Western power to recognise an independent Palestinian state. Britain and Germany said they were not yet ready to do so but later joined France in calling for an immediate ceasefire. British Prime Minister Keith Starmer said his government would recognise a Palestinian state only as part of a negotiated peace deal. Trump dismissed Macron's move. "What he says doesn't matter," he said. "He's a very good guy. I like him, but that statement doesn't carry weight." Israel and the United States withdrew their delegations on Thursday from the ceasefire talks in Qatar, hours after Hamas submitted its response to a truce proposal. Sources initially said on Thursday that the Israeli withdrawal was only for consultations and did not necessarily mean the talks had reached a crisis. But Netanyahu's remarks suggested Israel's position had hardened overnight. US envoy Steve Witkoff said Hamas was to blame for the impasse, and Netanyahu said Witkoff had got it right. Senior Hamas official Basem Naim said on Facebook that the talks had been constructive, and criticised Witkoff's remarks as aimed at exerting pressure on Israel's behalf. "What we have presented — with full awareness and understanding of the complexity of the situation — we believe could lead to a deal if the enemy had the will to reach one," he said. Mediators Qatar and Egypt said there had been some progress in the latest round of talks. They said suspensions were a normal part of the process and they were committed to continuing to try to reach a ceasefire in partnership with the US. The proposed ceasefire would suspend fighting for 60 days, allow more aid into Gaza, and free some of the 50 remaining hostages held by militants in return for Palestinian prisoners jailed in Israel. It has been held up by disagreement over how far Israel should withdraw its troops and the future beyond the 60 days if no permanent agreement is reached. Itamar Ben-Gvir, the far-right national security minister in Netanyahu's coalition, welcomed Netanyahu's step, calling for a total halt of aid to Gaza and complete conquest of the enclave, adding in a post on X: "Total annihilation of Hamas, encourage emigration, [Jewish] settlement." Mass hunger International aid organisations say mass hunger has now arrived among Gaza's 2.2 million people, with stocks running out after Israel cut off all supplies to the territory in March, then reopened it in May but with new restrictions. The Israeli military said on Friday it had agreed to let countries airdrop aid into Gaza. Hamas dismissed this as a stunt. "The Gaza Strip does not need flying aerobatics, it needs an open humanitarian corridor and a steady daily flow of aid trucks to save what remains of the lives of besieged, starving civilians," Ismail Al-Thawabta, director of the Hamas-run Gaza government media office, told Reuters. Gaza medical authorities said nine more Palestinians had died over the past 24 hours from malnutrition or starvation. Dozens have died in the past few weeks as hunger worsens. [[nid:720599]] Israel says it has let enough food into Gaza and accuses the United Nations of failing to distribute it, in what the Israeli foreign ministry called on Friday "a deliberate ploy to defame Israel". The United Nations says it is operating as effectively as possible under Israeli restrictions. United Nations agencies said on Friday that supplies were running out in Gaza of specialised therapeutic food to save the lives of children suffering from severe acute malnutrition. United Nations aid chief Tom Fletcher also has demanded that Israel provide evidence for its accusations that staff with the UN Office for the Coordination of Humanitarian Affairs were affiliated with Hamas, according to a letter seen by Reuters. The ceasefire talks have been accompanied by continuing Israeli offensives. Palestinian health officials said Israeli airstrikes and gunfire had killed at least 21 people across the enclave on Friday, including five killed in a strike on a school sheltering displaced families in Gaza City. In the city, residents carried the body of journalist Adam Abu Harbid through the streets wrapped in a white shroud, his blue flak jacket marked PRESS draped across his body. He was killed overnight in a strike on tents housing displaced people. Mahmoud Awadia, another journalist attending the funeral, said the Israelis were deliberately trying to kill reporters. Israel denies intentionally targeting journalists. Israel launched its assault on Gaza after Hamas-led fighters stormed Israeli towns near the border, killing some 1,200 people and capturing 251 hostages on October 7, 2023. Since then, Israeli forces have killed nearly 60,000 people in Gaza, health officials there say, and reduced much of the enclave to ruins. ALSO READ: Israel and US recall teams from Gaza truce talks, US says Hamas not showing good faith
