‘Global oil market is oversupplied': expert expects oil prices to fall
Rob Thummel, senior portfolio manager and managing director at Tortoise Capital says oil prices are down a little bit but have seen a slight increase as a result of an improved global economic outlook.
'They're about flat today, maybe down just a little bit, but we've seen a nice little rise in the oil price over the last couple of weeks as a result of an improving outlook for the global economy tied to probably a less, I guess, less tariffs than really were expected in the long run,' Thummel told BNNBloomberg.ca in a Monday interview.
West Texas Intermediate (WTI) crude was hovering above US$67 a barrel in early afternoon trading on Monday while Brent crude was trading just above $68.
The Organization of Petroleum Exporting Countries (OPEC) agreed to provide more than 500,000 additional barrels per day around global markets in August, in a bid to regain market share lost to other oil producers.
'The global oil market is oversupplied right now,' said Thummel. 'It's going to be oversupplied for the second, half of the year, because OPEC+ is bringing back oil volumes back to the market. They've accelerated the pace at which they're unwinding some of their previous cuts, and that's going to result in an oversupplied oil market. And typically, when you have an oversupplied oil market, inventories rise, and then prices fall, and that's exactly what we've seen.'
The Strait of Hormuz, a sea passageway for large volumes of crude, was under threat of closure during the conflict between Iran and Israel. After the U.S. military strikes on three nuclear strikes, the dispute came to an end after the Americans brokered a deal between the two Middle East countries effectively ending tensions.
'The biggest geopolitical risk to focus on still is Iran and the Strait of Hormuz, and any implications of a closure of the Strait of Hormuz, which we don't think is going to happen, or just a lowering of the export volumes that come out of Iran on a daily basis that could, you know, cause oil prices to rise,' said Thummel. 'But right now, we don't see any of those geopolitical risks really rising that high.'
About 20 million barrels of oil per day, or around 20 per cent of the world's oil passed through the strait in 2024.
'Accelerated electricity growth'
The expected drop in oil prices comes as the demand for electricity surges. Thummel said there has been flat electricity demand for the last 20 years but that is changing.
'AI changed the game,' said Thummel. 'We're going to now start to have accelerated electricity growth in the U.S. and probably Canada, and likely globally and so that's why we think electricity is the new oil. It's going to be the growth driver going forward and there are a lot of opportunities as a result of that.'
Canada's electricity demand is projected to significantly increase in the coming years, potentially more than doubling in the next 25 years, according to Canada Energy Regulator. The growth is driven by population increase, electrification of the economy, including electric vehicles and industrial processes, and the need to replace aging infrastructure.
Thummel says there is going to be massive electricity demand over the next several decades tied to AI, industrialization, manufacturing and EVs.
'All of these captured together, are really going to expand the amount of electricity demand dramatically,' said Thummel. 'It could be over 1000 terawatt hours of electricity.'
'It's a massive amount of electricity that's going to be needed to be generated really, not just in the next decade, but really in the next five or six years,' said Thummel. 'And so that's why we're so excited about it Tortoise, and it creates opportunities to invest in natural gas, nuclear, because those two are going to really be the primary fuel source just to generate this electricity going forward.'
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Cision Canada
2 hours ago
- Cision Canada
SALTIRE CAPITAL LTD. ANNOUNCES PROPOSED ACQUISITION OF SANSTONE INVESTMENTS LIMITED, CREDIT FACILITY WITH SAGARD CREDIT PARTNERS II, LP, CONCURRENT PRIVATE PLACEMENT AND INTENTION TO SEEK WRITTEN SHAREHOLDER CONSENT
/ NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S. / TORONTO, July 25, 2025 /CNW/ - Saltire Capital Ltd. (" Saltire" or the " Company") (TSX: SLT, SLT.U, is pleased to announce that it has entered into a definitive agreement (the " Purchase Agreement") to purchase (the " Acquisition"), indirectly through a wholly-owned subsidiary (the " Purchaser"), 100% of the voting common shares of SanStone Investments Limited (" SanStone"), a leading owner and operator of heavy equipment dealerships and agricultural equipment dealerships in Eastern Canada that owns and operates the Wilson Equipment and Tidal Tractor dealership brands. Concurrently with the execution of the Purchase Agreement, the Company is also pleased to announce that it has (i) entered into a loan agreement (the " Loan Agreement") with, among others, Sagard Holdings Manager LP, as administrative agent and collateral agent, and Sagard Credit Partners II, LP (" Sagard") and the other lenders party thereto from time to time (the " Lenders"), pursuant to which the Lenders will, subject to the satisfaction of certain conditions precedent, make available certain credit facilities to Saltire up to an aggregate principal amount of US$100 million (the " Credit Facility"), and (ii) launched a brokered private placement (the " Private Placement" and, together with the Acquisition and Loan Agreement, the " Transactions") of up to 424,448 common shares in the capital of the Company (" Common Shares") at a price of CAD$11.78 per Common Share for aggregate gross proceeds of up to CAD$5,000,000, with an over-allotment option for an additional 63,667 Common Shares for further proceeds of CAD$749,997.26. The Acquisition values SanStone at CAD$70 million, subject to customary adjustments (the " Purchase Price"). On closing of the Acquisition (" Closing"), Saltire will satisfy the Purchase Price by: (i) issuing Common Shares to the SanStone shareholders in an aggregate amount equal to CAD$10 million; (ii) issuing non-voting common shares in the Purchaser to certain SanStone shareholders, which represent an economic interest of approximately 31% in SanStone; (iii) payment of CAD$500,000 into an escrow account, as security for post-Closing adjustments to the Purchase Price; and (iv) payment of approximately CAD$34 million in cash. All figures are subject to standard adjustments pursuant to the Purchase Agreement. "The acquisition of SanStone is a unique and extremely exciting opportunity for Saltire. SanStone is a pre-eminent operator of heavy equipment and agricultural dealerships in Canada, which has served its markets for generations. I am delighted that the existing management team at SanStone is continuing and bringing their decades of experience to Saltire," said Andrew Clark, CEO of Saltire. "Saltire Capital allows us to continue to grow our businesses and our people while reducing succession risk for our employees, shareholders, customers and suppliers. To get all of that and an opportunity to become shareholders of the broader Saltire platform was very compelling. We are thrilled to join Saltire Capital at the beginning of their growth story," said Bill Sanford, CEO of SanStone. Closing of each of the Acquisition and the Private Placement are subject to customary closing conditions for transactions of a similar nature, including the conditional approval of the Toronto Stock Exchange (the " TSX") for the listing of the Common Shares to be issued or become issuable on Closing. Funding of the Loan Agreement is subject to customary conditions precedent, including the Closing. Sagard Credit Facility Selected highlights regarding the Credit Facility include: The Lenders will provide Saltire with up to US$100 million of credit, approximately US$50.1 million of which is anticipated to be drawn on Closing (the " Initial Draw"); Subject to certain conditions in the Loan Agreement, Saltire may make additional draw requests (" Additional Draws") up to an aggregate principal amount of US$49.9 million to fund future acquisitions; and the Credit Facility will mature on the fifth anniversary of the Loan Agreement. The proceeds from the Initial Draw will be used (i) to refinance Saltire's existing credit facilities with National Bank of Canada, (ii) to refinance Saltire's preferred equity, (iii) to refinance SanStone's existing debt, to the extent same is assumed on Closing, (iv) to finance a portion of the cash Purchase Price under the Acquisition, and (v) for the payment of fees and expenses incurred in connection with the Loan Agreement. Proceeds from the Additional Draws will be available to finance certain permitted acquisitions under the Loan Agreement, and for the payment of fees and expenses incurred in connection with such permitted acquisitions. As consideration for the entering into of the Loan Agreement and provision of the Credit Facility, Saltire has agreed to issue 1,504,812 Common Share purchase warrants to Sagard (the " Sagard Warrants"). Each whole Sagard Warrant will entitle the holder to purchase one Common Share at a price of CAD$14.5228 per Common Share for a period of five years following Closing. "We are pleased to partner with Sagard as our lender as we continue to execute on our growth strategy. I am confident that this transaction will enhance our success as we continue to grow our business," said Andrew Clark, CEO of Saltire. Concurrently with the Acquisition and Credit Facility, the Company is pleased to announce that it has entered into an agreement with Paradigm Capital Inc. (" Paradigm") as sole agent and sole book runner in connection with a proposed best efforts private placement offering of up to 424,448 Common Shares at a price of CAD$11.78 per Common Share, for gross proceeds of approximately CAD$5 million. Paradigm has also been granted an over-allotment option, pursuant to which Paradigm may increase the size of the Private Placement by up to an additional 63,667 Common Shares for additional gross proceeds of up to CAD$749,997.26. The Private Placement is expected to close on or about August 12, 2025. In connection with the Private Placement, Paradigm will be paid (i) a cash fee equal to 7% of the gross proceeds of the Private Placement, and (ii) Common Share purchase warrants (the " Compensation Warrants") equal to 7% of the number of Common Shares issued pursuant to the Private Placement. The Compensation Warrants will have the same terms as the Sagard Warrants. The proceeds of the Private Placement will be used to, directly or indirectly, fund a portion of the cash Purchase Price payable under the Acquisition. TSX Approval and Written Shareholder Approval Pursuant to Section 611(c) of the TSX Company Manual, securityholder approval of the Transactions is required as the number of Common Shares to be issued or issuable in connection with the Private Placement and payment of the Purchase Price (together with the Common Shares issuable in connection with the Sagard Warrants and Compensation Warrants) exceeds 25% of the currently issued and outstanding Common Shares. Instead of seeking securityholder approval at a duly called meeting of securityholders, the TSX is permitting the Company, pursuant to Section 604(d) of the TSX Company Manual, to provide written evidence that holders of more than 50% of the issued and outstanding Common Shares who are familiar with the terms of the Transactions are in favour of them. In addition, the Transactions and the listing of Common Shares issued or issuable in connection with the Transactions are subject to the approval of the TSX. Advisors National Bank acted for Saltire as transaction advisor on the acquisition of SanStone, Raymond James acted as advisor for Saltire on the Credit Facility, and Paradigm is acting for Saltire on the Private Placement. Goodmans LLP acted as legal counsel to the Company on the Credit Facility and Private Placement. Torys LLP acted as legal counsel to Sagard on the Credit Facility. BLG acted as legal counsel to Paradigm on the Private Placement. McInnes Cooper acted as legal counsel to the Company and Cox & Palmer acted as legal counsel to SanStone on the Acquisition. A copy of the Loan Agreement will be filed with the applicable securities commissions using the Canadian System for Electronic Document Analysis and Retrieval Plus (" SEDAR+") and will be available for viewing on Saltire's SEDAR+ profile at About Saltire Capital Ltd. Saltire is a long-term capital partner that allocates capital to equity, debt and/or hybrid securities of high-quality private companies. Investments made by Saltire consist of meaningful and influential stakes in carefully selected private companies that it believes are under-valued businesses with the potential to significantly improve fundamental value over the long-term. These businesses will generally have high barriers to entry, predictable revenue streams and cash flows and defensive characteristics. Although Saltire primarily allocates capital to private companies, Saltire may, in certain circumstances if the opportunity arises, also pursue opportunities with orphaned or value challenged small and micro-cap public companies. Saltire provides investors with access to private and control-level investments typically reserved for larger players, while maintaining liquidity. About SanStone Investments Ltd. SanStone Investments is a private equity firm established in 2013 by Bill Sanford and likeminded investors with a mission to purchase and grow strong Maritime Canadian companies by focusing on its customers and employees. SanStone's operating companies are Wilson Equipment Limited, a heavy equipment sales and service industry leader based in Bible Hill/Truro and Dartmouth, Nova Scotia, and Tidal Tractor, a top agricultural and construction equipment supplier with locations in Port Williams, Dartmouth, and Onslow/Truro, Nova Scotia, and in Moncton, New Brunswick. About Sagard Credit Partners Sagard Credit Partners is a non-sponsor direct lending strategy focused on middle-market public and private companies in North America. It provides bespoke debt solutions across the credit spectrum in first and second lien loans, such as unsecured and mezzanine financings, tailored to a company's specific needs. Prior to the Transactions, Sagard did not hold any securities of Saltire. As a result of holding the Sagard Warrants, Sagard will hold securities exercisable for an aggregate of 1,504,812 common shares, representing approximately 18.52% of the outstanding voting shares after giving effect the exercise of all of the Sagard Warrants and approximately 17.60% after giving effect to the exercise of all of the Sagard Warrants and the Private Placement. The Sagard Warrants are being acquired by Sagard for investment purposes and, in the future, it may discuss with management and/or the board of directors any of the transactions listed in clauses (a) to (k) of item 5 of Form F1 of National Instrument 62-103 – The Early Warning System and Related Take-over Bid and Insider Reporting Issues and it may further purchase, hold, vote, trade, dispose or otherwise deal in the securities of Saltire, in such manner as it deems advisable to benefit from changes in market prices of Saltire securities, publicly disclosed changes in the operations of Saltire, its business strategy or prospects or from a material transaction of Saltire, and it will also consider the availability of funds, evaluation of alternative investments and other factors. An early warning report will be filed by Sagard in accordance with applicable securities laws and will be available on SEDAR+ at or may be obtained upon request from Andrew Clark at 416-419-9405. Forward Looking Information This press release may contain forward-looking information and forward-looking statements within the meaning of applicable securities laws (" Forward-Looking Statements"). The Forward-Looking Statements contained in this press release relate to future events or Saltire's future plans, operations, strategy, performance or financial position and are based on Saltire's current expectations, estimates, projections, beliefs and assumptions, including, among other things, in respect of the closing of the Acquisition, the Credit Facility and the Private Placement, Saltire's ability to satisfy the conditions to Closing under the Purchase Agreement, Saltire's ability to satisfy the conditions to funding under the Loan Agreement (including the approval of the TSX), completion of the Private Placement, and Saltire's ability to maintain compliance with covenants under the Loan Agreement. In particular, there is no assurance that Saltire will satisfy any or all of the conditions for Closing of the Acquisition, Credit Facility or Private Placement. Such Forward-Looking Statements have been made by Saltire in light of the information available to it at the time the statements were made and reflect its experience and perception of historical trends. All statements and information other than historical fact may be Forward-Looking Statements. Such Forward-Looking Statements are often, but not always, identified by the use of words such as "may", "would", "should", "could", "expect", "intend", "estimate", "anticipate", "plan", "foresee", "believe", "continue", "expect", "potential", "proposed" and other similar words and expressions. Forward-Looking Statements are based on certain expectations and assumptions and are subject to known and unknown risks and uncertainties and other factors, many of which are beyond Saltire's control, that could cause actual events, results, performance and achievements to differ materially from those anticipated in these Forward-Looking Statements. Forward-Looking Statements are provided for the purpose of assisting the reader in understanding Saltire and its business, operations, prospects and risks at a point in time in the context of historical and possible future developments, and the reader is therefore cautioned that such information may not be appropriate for other purposes. Forward-Looking Statements should not be read as guarantees of future performance or results. Readers are cautioned not to place undue reliance on Forward-Looking Statements, which speak only as of the date of this press release. Unless otherwise noted or the context otherwise indicates, the Forward-Looking Statements contained herein are provided as of the date hereof, and Saltire disclaims any intention or obligation, except to the extent required by law, to update or revise any Forward-Looking Statements as a result of new information or future events, or for any other reason. This press release should be read in conjunction with the management's discussion and analysis and unaudited condensed consolidated interim financial statements and notes thereto as at and for the three months ended March 31, 2025 and Saltire's Annual Information Form for the year ended December 31, 2024 dated March 28, 2025. Additional information about Saltire, including with respect to the risk factors that should be taken into consideration when reading this press release and the Forward-Looking Statements, is available on Saltire profile on SEDAR+ at
Globe and Mail
5 hours ago
- Globe and Mail
Companies focused on AI see surge this earnings season
Businesses focused on artificial intelligence are raking it in so far this earnings season. Those catering to actual people, less so. The AI spending surge is providing a big boost for semiconductor and software giants like Google parent Alphabet Inc. GOOGL-Q, while companies from airlines to restaurants and food manufacturers are struggling to navigate an erratic U.S. trade policy which is boosting costs, upending supply chains and hurting consumer confidence. Along with Alphabet, SK Hynix and India's Infosys exceeded market forecasts on Thursday and predicted brighter days to come, with Alphabet and SK Hynix both flagging plans to boost spending. SK supplies the world's most valuable company Nvidia Corp. NVDA-Q, the AI chipmaking giant that recently surpassed US$4-trillion in market value. By contrast, executives at many consumer names were less enthusiastic, from luxury bellwether LVMH, packaged food giant Nestle, to toymakers Hasbro and Mattel and airlines Southwest and American. They, along with automakers and giants like Coca-Cola, have indicated that some segments of the buying public have pulled in their spending as prices and interest rates remain high. The dichotomy is evident in IBM's results. Sales in Big Blue's 'AI book of business' grew 25 per cent in its most recent quarter to US$7.5-billion, while its software segment fell short of expectations and the company sounded cautious about how much its consulting segment might grow this year. The equity market has accentuated the positive. News that the U.S. had struck a trade deal with Japan and was closing in on a deal with the European Union ahead of an Aug 1. deadline boosted markets. The broad S&P 500 notched another record this week and the Eurostoxx was just a few points shy of that mark. Airlines are using AI to set ticket prices. Here's how you can avoid price manipulation when booking flights 'The market is getting friendly with a view that tariffs ending up higher than they have ever been for 100 years will not have a negative impact on economic growth, because we haven't seen any negative impact on economic growth so far,' said Van Luu, head of solutions strategy, fixed income and foreign exchange at Russell Investments. Whether companies continue to absorb that hit remains to be seen. So far, companies have reported over July 16-22 a combined full-year loss of as much as US$7.8-billion, with automotive, aerospace and pharmaceutical sectors hurt the most by tariffs, according to a Reuters tariff tracker. U.S. averages have been buoyed by the so-called Magnificent Seven, a group of tech giants that has benefited heavily from spending plans on artificial intelligence, and currently accounts for more than 30 per cent of the value of the S&P. 'AI is one of the strongest areas of growth for the economy, and the market mirrors the economy,' said Adam Sarhan, chief executive of 50 Park Investments. To be sure, the market's reaction may be in part because a larger-than-normal percentage of companies are clearing a lowered bar for estimates. Walmart unveils AI super agents roll-out to boost e-commerce growth At the beginning of April, the market expected 10.2 per cent year-over-year S&P earnings growth, but by July, that number had dropped to 5.8 per cent, according to LSEG data. With about 30 per cent of constituents reporting results, the blended earnings growth rate sits at 7.7 per cent. AI-focused businesses continued to print money in the most recent quarter. Nvidia supplier SK Hynix posted record quarterly profit, boosted by demand for artificial intelligence chips and customers stockpiling ahead of potential U.S. tariffs. Indian IT services provider Infosys raised the floor of its annual revenue forecast range to 1 per cent to 3 per cent, from flat to 3 per cent, matching analyst expectations. 'The tech community is going ahead full speed ahead ... and banks are in a very strong position now,' said Bill George, former chairman and CEO of Medtronic and executive education fellow at Harvard Business School. 'Other companies will struggle to get growth.' Consumer companies have been less upbeat. Nestle, the world's biggest packaged food maker, reported softer demand as it struggled to win thrifty shoppers to its big brands. U.S. airlines Southwest and American Airlines warned that Americans are travelling less, the latest signal that U.S. consumers are remaining cautious about their spending. Toymakers Mattel and Hasbro both said uncertainties around tariffs are acting as a headwind. Carmakers are among firms dealing with the most difficulty. The auto giants are resisting raising prices, eating the cost of tariffs that may cost them millions or billions of dollars. Levies on metals, copper and auto parts made it harder to navigate changing tariff policies. South Korea's Hyundai Motor on Thursday posted a 16-per-cent decline in second-quarter operating profit, saying U.S. tariffs cost it 828-billion won (US$606.5-million) in the second quarter, with a bigger hit expected in the current quarter. General Motors still expects a US$4-billion to US$5-billion hit to its bottom line this year. On Wednesday, Tesla chief executive Elon Musk said U.S. government cuts in support for electric-vehicle makers could lead to a 'few rough quarters,' as his firm reported its worst quarterly sales decline in over a decade.
Japan Forward
6 hours ago
- Japan Forward
The Astonishing Brazenness of Shigeru Ishiba
The Shigeru Ishiba government and the Trump administration have concluded their tariff negotiations. In a breakthrough just ahead of the August 1 US deadline, they reached an agreement to keep the reciprocal tariff rate at 15%. Had they not done so, the rate would have risen to 25%. An additional 25% tariff on Japanese cars will also be halved, so that together with the existing tariffs, the total tariff rate comes to 15%. Worst-case scenarios appear to have been avoided. Nevertheless, these tariffs are significantly higher than those instituted under the first Trump administration. It is disappointing that they will now be imposed. America is Japan's only ally. Despite being faced with the threat of unreasonably high tariffs from this same United States, Prime Minister Ishiba was unable to convince the US to withdraw the measures. We doubt whether the government did enough to protect Japan's national interests. It is outrageous that the Prime Minister should be allowed to remain in his position just because such a flawed agreement has been reached. He should rightly announce his resignation as soon as possible. Prime Minister Shigeru Ishiba meets with US President Donald Trump in Kananaskis, western Canada, on June 16. (©Cabinet Public Relations Office) President Donald Trump has gone wild during his second term. He has taken a self-righteous approach of pressuring other countries by arbitrarily imposing tariffs on their exports to the US. A series of unjustified claims have emanated from the White House, such as blaming Japan for the lack of sales of American cars, which are imported tariff-free into Japan. Those claims contain glaring factual errors and are unacceptable. First, the Japan-US trade agreement concluded by Trump in his first administration confirmed that additional tariffs would not be imposed on Japanese motor vehicle imports. However, Trump has acted as if he were free to simply renege on this agreement. Wasn't that exactly why the Ishiba administration kept calling for the US to withdraw its high tariff measures? Of course, it was bound to be difficult to convince Trump to stop using tariffs only in the case of Japan. It is a weapon he obviously dearly loves, and concessions by Japan might have been unavoidable to a certain degree. However, that doesn't mean we can agree with Prime Minister Ishiba's self-adulation for having "achieved the largest reduction among countries with a trade surplus with the United States." It was evident all along that the US response would depend on a decision made by Trump personally. Nonetheless, Ishiba chose to leave it up to his Cabinet to manage. He displayed absolutely no initiative to negotiate directly with Trump in order to break the deadlock. Ishiba hardly deserves the plaudits he is awarding himself. Ishiba has also said that the two sides reached an agreement that was "in line with the national interests of both Japan and the United States." Objectively, however, how much has Japan improved its national interests compared to before the advent of the current Trump administration? The Prime Minister is prioritizing the expansion of investment in the United States. This should both create American jobs and boost profits for Japanese companies. He has offered explanations, such as "Government-affiliated financial institutions will be able to provide investments, loans, and loan guarantees of up to $550 billion" (approximately ¥80 trillion JPY). Ishiba also emphasized that, together, Japan and the US will build resilient supply chains in areas important to economic security. However, the expansion of investment in the US has been a trend among Japanese companies for some time. It is also natural that the two countries should strengthen cooperation in terms of economic security. However, we must be careful not to fall into the trap of investing to fulfill our promises to the US without fully considering the costs. In the agricultural sector, Japan will increase the amount of rice it imports from the US within the existing minimum access framework. Fortunately, Japan's farmers were not sacrificed through tariff reductions or other measures. Nonetheless, a careful assessment of the impact of the increased inflow of US rice on rice prices is needed. For Japanese companies, the fact remains that the 15% tariff will constitute a heavy burden. Nevertheless, the conclusion of the negotiations means they can finally rework their strategies for doing business with the US. Not only large companies but also subcontractors must remain undeterred by the high American tariff policy. Hopefully, they will go all out to improve productivity and develop new demand. Prime Minister Shigeru Ishiba explains the results of the Upper House election at a press conference. July 21 (©Sankei by Akira Konno). With the conclusion of the negotiations, the government will now face other issues, including those involving domestic policies. However, Prime Minister Ishiba should not use these as an excuse to remain in power. He failed to attain his self-set minimum target for the number of ruling party seats in both the Lower and Upper House elections. As a consequence, the ruling parties lost their majorities in both houses of the Diet. It is the Prime Minister's responsibility to promptly announce his resignation. Even after his meeting with three former prime ministers from his own Liberal Democratic Party (LDP) on July 23, Ishiba again reiterated his intention to remain in office. His brazenness is absolutely astonishing. It is unacceptable for him to continue to ignore the will of the Japanese people as expressed at the polls. There is a rising chorus of demands from LDP lawmakers and local organizations for Ishiba to step down. This is a totally understandable reaction since, if he is allowed to remain prime minister, the LDP will be completely abandoned by its support base. Moreover, unless the LDP and its ruling coalition partner, Komeito, actually force him to resign, Ishiba will likely lose even more support than he did in the recent Upper House election. If that happens, implementation of the Japan-US trade agreement could become uncertain, and the ruling parties' ability to clean house would be called into question. An extraordinary Diet session will be convened on August 1. The Diet will require a certain number of days to thoroughly deliberate on the new Japan-US agreement. That will not change, regardless of whether there is a prime ministerial election as well. (Read the editorial in Japanese.) Author: Editorial Board, The Sankei Shimbun Keywords/tags:
