Bull market officially lives on with fresh S&P record, nears 1000 days
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San Francisco Chronicle
11 minutes ago
- San Francisco Chronicle
Asian markets gain, with Japan's Nikkei up 3.5%, lifted by deal on Trump's tariffs
TOKYO (AP) — Asian shares rallied on Wednesday, with Tokyo's benchmark Nikkei 225 index up 3.5% after Japan and the U.S. announced a deal on President Donald Trump's tariffs. The agreement as announced calls for a 15% import duty on goods imported from Japan, apart from certain products such as steel and aluminum that are subject to much higher tariffs. That's down from the 25% Trump had said would kick in on Aug. 1 if a deal was not reached. 'This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it,' Trump posted on Truth Social, noting that Japan was also investing 'at my direction' $550 billion into the U.S. He said Japan would 'open' its economy to American autos and rice. Japan's benchmark Nikkei 225 gained 3.5% in afternoon trading to 41,171.32. Hong Kong's Hang Seng jumped 1.4% to 25,470.25, while the Shanghai Composite index was little changed, gaining less than 0.1% to 3,582.30. Australia's S&P/ASX 200 edged up 0.7% to 8,737.20 and the Kospi in South Korea edged 0.4% higher to 3,183.77. 'President Trump has signed two trade deals this week with the Philippines and Japan which is likely to keep market sentiment propped up despite deals with the likes of the EU and South Korea remaining elusive, for now at least,' Tim Waterer, chief market analyst at Kohle Capital Markets, said in a report. Japanese companies tend to be cautious about their public reactions, and some business officials have privately remarked in off-record comments that they hesitate to say anything because Trump keeps changing his mind. The Japan Automobile Manufacturers' Association also said it had no comment, noting there was no official statement yet. Japan's Prime Minister Shigeru Ishiba welcomed the agreement as beneficial to both sides. Toyota stock jumped 14% in Tokyo trading, while Honda was up nearly 11% and Nissan added 8%. In other sectors, Nippon Steel, which is acquiring U.S. Steel, rose 2.4% while video game maker and significant exporter Nintendo Co. added 0.7%. Sony Group surged 4.6%. Wall Street inched to another record on Tuesday following some mixed profit reports, as General Motors and other big U.S. companies gave updates on how much Trump's tariffs are hurting or helping them. The S&P 500 added 0.1% to the all-time high it had set the day before, closing at 6,309.62. The Dow Jones Industrial Average rose 0.4% to 44,502.44. The Nasdaq composite slipped 0.4% from its own record, to 20,892.68. So far, the U.S. economy seems to be powering through the uncertainty created by Trump's on-and-off tariffs. Many of Trump's proposed taxes on imports are currently on pause, and the next big deadline is Aug. 1. Talks are underway on possible trade deals with other countries that could lower the stiff proposals before they kick in. Trump said he reached a trade agreement with the Philippines following a meeting Tuesday at the White House, that will see the U.S. slightly drop its tariff rate for the Philippines without paying import taxes for what it sells there. In the bond market, Treasury yields sank as traders continue to expect the Federal Reserve to wait until September at the earliest to resume cutting interest rates. The yield on the 10-year Treasury eased to 4.34% from 4.38% late Monday. In other dealings early Wednesday, U.S. benchmark crude oil gained 15 cents to $65.46 a barrel. Brent crude, the international standard added 16 cents to $68.74 a barrel.
Business Insider
42 minutes ago
- Business Insider
Dangote exposes black market fuel cartels undermining refinery development in Africa
Speaking at the Global Commodity Insights Conference on West Africa organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority in partnership with S&P Global in Abuja, Dangote warned that these shadow networks are undermining efforts to build local refinery infrastructure by manipulating prices and supply chains with emphasis on the maritime fuel trade centered around Lome, Togo. He explained that international traders have long exploited the lack of refining capacity in Africa by storing and selling imported refined petroleum products offshore at inflated prices. ' The market is a uniquely African phenomenon, ' he said. ' International traders maintain floating storage of about two million tonnes of petroleum products just offshore. These were being sold at inflated prices, given the lack of local refining capacity. Immediately, the Dangote Refinery became operational, they decided to crash the prices.' Dangote argued that the move was deliberate. ' Make no mistake, those who profit from this system will do everything they can to prevent other refineries from emerging." "The whole essence of Lome is to ensure that no refinery operates in Sub-Saharan Africa. In fact, I don't see any new major refining project succeeding with the offshore Lome market in existence.' He warned that these shadow networks manipulate supply chains and undercut prices, ultimately deterring investment in large-scale refining infrastructure. ' We cannot continue to allow a parallel oil economy to dictate the fate of Africa's energy self-sufficiency, ' Dangote said. Africa's push for fuel sufficiency Dangote's comments come amid renewed efforts by African leaders to attract private capital into local refining infrastructure in order to reduce dependency on foreign fuel imports and retain more value within the continent. Despite efforts to expand refining capacity, Nigeria and other West African nations still import nearly 69% of their gasoline, according to Farouk Ahmed, head of Nigeria's Midstream and Downstream Petroleum Regulatory Authority. In 2025, West Africa trades approximately 2.05 million metric tonnes of gasoline each month, yet only 31% is supplied by local refineries. Despite the region's position as a major hydrocarbon producer and a growing refining hub, it continues to depend heavily on fuel imports from Europe, the Middle East, and Asia. Africa's push for fuel self-sufficiency is driven by strategic reforms, infrastructure investments, and policy changes aimed at reducing reliance on imported petroleum products. . Aliko Dangote pointed to a major challenge undermining progress: the lack of harmonised fuel standards across African countries. Unlike Europe's unified system, each African nation maintains its own specifications.
Business Insider
an hour ago
- Business Insider
BYD Stock (BYDDF) Shines as ‘China Discount' Pays Dividends
Chinese EV giant BYD (BYDDF), also tracking under the ticker (BYDDY) via the TipRanks platform, presents one of the most compelling return opportunities on the U.S. stock market, mainly due to its significant undervaluation stemming from the well-known 'China discount.' While macroeconomic and geopolitical risks associated with investing in China are real, they appear to be already factored into the stock price. Even a modest improvement in sentiment—such as progress in improving U.S.-China relations—could unlock substantial upside. Given this dynamic, I remain confidently Bullish on BYD. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. BYD Stock is a Textbook Value Investment For investors seeking stocks with raised exposure to macroeconomic themes, while attaining high market-beating returns, BYD ticks almost every box. The stock's forward P/E ratio is 18.5, compared to 17.5 for the sector, yet BYD's forward diluted earnings per share growth is 36% compared to just 6.5% for the sector. That indicates a massive undervaluation. All of that extra earnings growth for essentially the same P/E multiple is nothing other than a bargain. The geopolitical dynamics driving BYD's discount reflect broader uncertainty around global trade policy and shifting political influence. However, any aggressive moves by the U.S. are likely to be met with retaliatory measures from China, making it unlikely that American equities will thrive while Chinese equities continue to deteriorate. This mutual vulnerability creates a kind of geopolitical equilibrium, which in turn helps stabilize the long-term return outlook for Chinese stocks like BYD. Over the past five years, BYD stock has delivered a price return of over 400%, with a nearly 60% return in the last year alone. When compared to broader indices like the S&P 500 (SPY), BYD's performance is clearly stellar, notching a 400% surplus over the U.S. average. While past performance is no guarantee of future results, this clearly demonstrates that BYD is rewarding shareholders through powerful financial returns from its pioneering strategies, which enable it to remain at the forefront of electric vehicle technology. BYD stock is cyclical, and it experiences periods of both negative and positive free cash flow. However, this is a natural phenomenon that opens up buying opportunities amid temporarily lower valuations. The company's forward financial projections indicate a substantial likelihood of 30% year-over-year normalized earnings growth in Fiscal 2026, as well as revenue growth of approximately 15% per annum for the next two years. This is somewhat slower than Fiscal 2025's enormous financial returns, but the valuation is low relative to the sector, and such a strong future growth outlook warrants buying now. U.S.-China Relations Must Improve to Lift Sentiment If the Trump administration adopts a more cooperative stance with China, we could see lower risk premiums applied to Chinese equities, such as BYD. Moreover, if the cooperative trade relationship between the U.S. and China remains stable over the long term, there's a strong likelihood that capital flows from Western investors into Chinese stocks will increase significantly. The art of great macro investing is predicting capital flows, and I believe that certain high-class Chinese stocks are currently in a limbo period before a positive sentiment inflection amid more stable geopolitics. However, we should give credence to the counterargument, which is that the current calm between the U.S. and China ends on August 12. If the Trump administration decides to hike tariffs to 100% or higher again, this could indeed mark the start of a more protracted effort for the U.S. to neutralize China. Equity markets on both sides of the divide would likely contract as a result. Even in the event of broad international market volatility stemming from a trade war, China may face gradual long-term setbacks if its access to global markets is increasingly restricted through coordinated efforts by Western allies to contain its economic influence. That said, China controls key rare-earth minerals that are essential for advanced semiconductors and other high-tech applications. Therefore, we cannot expect the U.S. to completely sever its ties with the Eastern superpower. Additionally, if the U.S. pushes its aggressive stance toward China too far on the trade front, China could make a military move against Taiwan, which would send markets into a tailspin. Therefore, the most prudent approach for Donald Trump is to pursue a policy grounded in diplomacy—or at the very least, one that maintains a balanced stance. Re-escalating tensions would be an impractical choice, given the significant long-term risks and the likelihood of heightened short-term market volatility. Given these dynamics, I believe that stronger U.S.-China relations are likely in the short to medium term. As a result, I expect Chinese equities to begin thriving more than they have in the past. A valuation re-rating based on heightened international inflows into BYD stock is the foundation of my bullish stance on the stock. Is BYD Stock a Buy, Sell, or Hold? On Wall Street, BYD stock has a consensus Strong Buy rating based on nine Buys, zero Holds, and zero Sells. The average BYDDF stock price target of $23.13 indicates almost 36% upside potential over the next 12 months. This presents a strong return opportunity and aligns with my proprietary view that BYD offers a compelling combination of robust financial growth potential and an attractive, undervalued entry point for investors. BYD Stock Positioned for Upside via Geopolitical Rebound BYD stands out as a compelling investment opportunity, demonstrating strong fundamentals and effective competitiveness in a saturated electric vehicle market. At its current valuation, the stock is well-positioned to benefit from any positive shift in global investor sentiment toward China, potentially resulting in outsized returns. Given these dynamics, BYD presents a strong case for medium- to long-term investment, contingent on continued financial performance and improved geopolitical conditions.
