Latest news with #TIC
Straits Times
2 days ago
- Business
- Straits Times
US bonds set for further hit from Trump's ‘big, beautiful' spending Bill
Incentives are growing for foreign investors to diversify out of US Treasuries losing sheen from prospects of deficit spending and inflation-boosting tariffs. PHOTO: BLOOMBERG US bonds set for further hit from Trump's 'big, beautiful' spending Bill TOKYO/SINGAPORE - As the Trump administration's 'big, beautiful bill' grinds its way through the US Senate, incentives are growing for foreign investors to diversify out of US Treasuries losing sheen from prospects of deficit spending and inflation-boosting tariffs. President Donald Trump's sweeping tax cut and spending measure will boost US debt by US$3.3 trillion (S$4.2 trillion), the nonpartisan Congressional Budget Office estimates, while runaway deficits and swelling debt led Moody's to cut its US credit rating in May. 'Definitely I'm concerned about the fiscal deficit expansion,' said Toshinobu Chiba, a Tokyo-based rates and credit fund manager for Simplex Asset Management. Mr Chiba said he has been using futures to shift away from Treasuries and into European debt, but aims to move that trade to the cash bond market when Trump's 'big, beautiful bill' passes and inflation expectations tick upwards. 'I think the first options should be Europe, especially the bunds and French bonds, and also Australia and Singapore are options for global investors.' Traditionally a refuge for markets, Treasuries have been volatile since April, becoming less attractive for overseas investors as Mr Trump's erratic policies on tariffs and taxes drove them to pare exposure to the dollar and US markets. US Treasury International Capital (TIC) data shows foreign money leaving US short and long-term debt and banking flows stood at a net US$14.2 billion in April, the same month that Mr Trump rattled global markets with his 'Liberation Day' tariffs. The US national debt has increased fourfold in less than 10 years to some US$36 trillion, with about US$29 trillion held publicly. Japan is the biggest external holder of Treasuries with US$1.13 trillion, followed by Britain with US$807.7 billion and China with US$757.2 billion, TIC data shows. Treasuries fell in the aftermath of the tariff news, with benchmark 10-year yields reaching as high as 4.629 per cent on May 22 before settling down to about 4.277 per cent. Treasury 10-year yields have swung between 3.9 per cent and 4.629 per cent since April. Passage of Mr Trump's long-simmering bill would give investors another reason to fret about the state of US finances. Prospects for even wider deficits in the US may compel European investors to dump Treasuries and bring their money home, said Gustavo Medeiros, London-based global head of research at emerging markets investment manager Ashmore Group. When Treasuries and other major bond markets sold off in April, the Bund market held firm. Though the amount of German debt is also growing after the new government's trillion euro defence and infrastructure spending push, Europe's biggest economy is the only G7 member with a debt-to-GDP ratio below 100 per cent, bolstering its safe-haven credentials. 'That not only creates an upward, better opportunity for the equity markets, but it also is going to increase the issuance of risk-free German bunds and pan-European debt,' Mr Medeiros said. 'So you're going to have a lot of incentive for capital to come back.' Yet a widespread sell-off is unlikely, despite fiscal concerns over Mr Trump's spending bill that are expected to steepen the Treasury yield curve as investors demand higher returns to hold US debt for longer, said analyst Masahiko Loo. 'The reduction in foreign US Treasury holdings has been a long-term structural trend rather than a sudden exodus,' said Mr Loo, a senior fixed income strategist at State Street. 'It is a 'diversification, not divestment' story with foreign investors, particularly in Asia.' REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
3 days ago
- Business
- Business Times
Trump's ‘big, beautiful' Bill set to further tarnish Treasuries' lustre overseas
[TOKYO/SINGAPORE] As the Trump administration's 'big, beautiful bill' grinds its way through the US Senate, incentives are growing for foreign investors to diversify out of US Treasuries losing sheen from prospects of deficit spending and inflation-boosting tariffs. President Donald Trump's sweeping tax cut and spending measure will boost US debt by US$3.3 trillion, the nonpartisan Congressional Budget Office estimates, while runaway deficits and swelling debt led Moody's to cut its credit rating in May. 'Definitely I'm concerned about the fiscal deficit expansion,' said Toshinobu Chiba, a Tokyo-based rates and credit fund manager for Simplex Asset Management. Chiba said he has been using futures to shift away from Treasuries and into European debt, but aims to move that trade to the cash bond market when Trump's 'big, beautiful bill' passes and inflation expectations tick upwards. 'I think the first options should be Europe, especially the bunds and French bonds, and also Australia and Singapore are options for global investors.' Traditionally a refuge for markets, Treasuries have been volatile since April, becoming less attractive for overseas investors as Trump's erratic policies on tariffs and taxes drove them to pare exposure to the US dollar and US markets. 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 US Treasury International Capital (TIC) data shows foreign money leaving US short and long-term debt and banking flows stood at a net US$14.2 billion in April, the same month that Trump rattled global markets with his 'Liberation Day' tariffs. The US national debt has increased fourfold in less than 10 years to some US$36 trillion, with about US$29 trillion held publicly. Japan is the biggest external holder of Treasuries with US$1.13 trillion, followed by Britain with US$807.7 billion and China with US$757.2 billion, TIC data shows. Treasuries fell in the aftermath of the tariff news, with benchmark 10-year yields reaching as high as 4.629 per cent on May 22 before settling down to about 4.277 per cent. Treasury 10-year yields have swung between 3.9 per cent and 4.629 per cent since April. Passage of Trump's long-simmering bill would give investors another reason to fret about the state of US finances. Senators debating the measure in a marathon weekend session were expected to pass it late on Monday and in the Asian trading day on Tuesday. Senate Republicans are set on using an alternative calculation method for the bill's cost that does not factor in extending the 2017 tax cuts and seems to save US$500 billion, according to an analysis by the Bipartisan Policy Center. Prospects for even wider deficits in the US may compel European investors to dump Treasuries and bring their money home, said Gustavo Medeiros, London-based global head of research at emerging markets investment manager Ashmore Group. When Treasuries and other major bond markets sold off in April, the Bund market held firm. Though the amount of German debt is also growing after the new government's trillion euro defence and infrastructure spending push, Europe's biggest economy is the only G7 member with a debt-to-GDP ratio below 100 per cent, bolstering its safe-haven credentials. 'That not only creates an upward, better opportunity for the equity markets, but it also is going to increase the issuance of risk-free German bunds and pan-European debt,' Medeiros said. 'So you're going to have a lot of incentive for capital to come back.' Yet a widespread sell-off is unlikely, despite fiscal concerns over Trump's spending bill that are expected to steepen the Treasury yield curve as investors demand higher returns to hold US debt for longer, said analyst Masahiko Loo. 'The reduction in foreign US Treasury holdings has been a long-term structural trend rather than a sudden exodus,' said Loo, a senior fixed income strategist at State Street. 'It is a 'diversification, not divestment' story with foreign investors, particularly in Asia.' Hemant Mishr, group CIO of SCUBE Capital, is also betting on a steeper Treasury curve. 'The markets are worried and US risk premiums will further widen,' he said. 'We expect US credit default swaps to continue quoting at a substantial premium to similarly rated sovereigns.' REUTERS
Business News Wales
6 days ago
- Business
- Business News Wales
First Artist's Impressions Unveiled for Proposed Venue Cymru Redevelopment
Conwy County Borough Council has shared a first look at the artist's impressions for proposals for Venue Cymru, Llandudno. The visuals showcase a transformed space that aims to better serve the local community, library users, visitors, cultural professionals and theatre patrons. The artist's impressions are included in a report that will be presented to the Economy and Place Overview and Scrutiny Committee. Councillors will be asked to consider the draft proposals and make recommendations to Cabinet. The report will also include the results of the Library Public Consultation and the outline economic impact report on the proposed relocation of Llandudno Library to Venue Cymru. The redesign will help safeguard both the area library and Venue Cymru's place as a premier cultural and events destination in North Wales. In addition to providing modern facilities and improving accessibility, the co-location of the Tourist Information Centre (TIC) and area library is expected to deliver cost savings of over £100,000 per year. 'Seeing the artist's impressions is an exciting milestone for the project,' said Conwy's Head of Economy & Culture, Sarah Ecob, 'It really helps bring our vision to life and shows our commitment to creating a cultural hub that is inclusive, modern, and fit for the future.' 'These proposals for Venue Cymru are part of a wider strategy to safeguard vital services and support economic growth, cultural development, and tourism in Conwy.' Cllr Dilwyn Roberts, Conwy's Cabinet Member for Culture, said: 'This redevelopment represents a significant investment in the cultural life of our region. Venue Cymru has long been a cornerstone of our arts and entertainment offer. These exciting proposals aim to ensure it continues to inspire and engage future generations and secure the future for the area library. I hope councillors get behind this project that promises to celebrate creativity, bring people together, and strengthen our communities' cultural identity.' Cllr Nigel Smith, Cabinet Member for a Sustainable Economy, added: 'I am really pleased to support this investment in Venue Cymru, as the project will be a welcomed boost to the local economy. The proposed works will both sustain and create jobs in the short term and help to safeguard and grow jobs in the future. Just as importantly by giving improved access to the arts and culture all under one roof, it will also help sustain our much-loved Venue Cymru, the Library Service, and Tourist Information service for the benefit of our residents and visitors.' The draft Business Case for funding has been submitted to UK Government. Final plans will be subject to councillors' approval. Plans will be put on show in Venue Cymru, Tourism Information Centre (TIC), and Llandudno Library in the coming months.
The Star
24-06-2025
- Business
- The Star
A win for economy and environment
Future-proof solutions: (From left) Permodalan Nasional Bhd Group chief executive officer Datuk Abdul Rahman Ahmad, Group chairman Raja Tan Sri Arshad Raja Tun Uda, Anwar, Finance Minister II Datuk Seri Amir Hamzah Azizan and Yayasan Pelaburan Bumiputra trustee Tan Sri Ambrin Buang at the Bumiputra Investment Foundation board meeting. — Picture courtesy of Anwar's Facebook PETALING JAYA: The Transitioning Industrial Clusters (TIC) initiative will be adopted as a national agenda to spur the growth of the green economy, says Datuk Seri Anwar Ibrahim. The Prime Minister said this initiative serves as a strategic measure aimed at uniting companies and public institutions to achieve the objective. 'It also creates more high-skilled jobs and reduces carbon emissions,' he said. TIC is an initiative designed to promote collaboration and unified action aimed at fostering economic growth, safeguarding employment and lowering carbon dioxide equivalent emissions within industrial clusters. In a Facebook post after chairing the Third Meeting of the National Digital Economy and Fourth Industrial Revolution Council yesterday, Anwar said he was impressed with Sarawak's plans to develop a TIC in Bintulu. He said the facility could contribute an extra RM12bil to the national gross domestic product, create 19,000 jobs and cut carbon emissions by 21.35 million tonnes by 2040. 'This initiative aligns with Sarawak's aspirations towards the net-zero carbon goal and strengthens its position as a leader in Malaysia's green industry.' He added that they also discussed the implementation of GovTech Malaysia during the meeting, including the MyGOV Malaysia application, which serves as the government's sole digital portal. 'The rakyat can engage online with various government agencies without having to queue at the counters. 'This reflects the government's efforts to ensure its services can be accessed easily, efficiently and transparently,' Anwar said. He also touched on the idea of expanding the MyDigital ID use to the private sector. 'We must build a safe, holistic and trusted digital ecosystem not only for government matters but also one that aids in people's daily lives and future business activities,' he said. The Prime Minister also said all agencies and government-linked companies entrusted with the bumiputra development mandate must continue to be the drivers of policy and key implementers of government initiatives. He said Permodalan Nasional Bhd and Pelaburan Hartanah Bhd must also double their efforts to raise investment literacy among the public. 'Perbadanan Usahawan Nasional Bhd must remain committed to empowering bumiputra entrepreneurs through access to financing and support in enhancing business capacity and capabilities,' he said on Facebook after chairing a Bumiputra Investment Foundation board meeting to review the performance of companies involved. Anwar said strengthening the competitiveness of the domestic economy and ensuring sustainable returns for unit trust holders is crucial in facing global economic uncertainties.
The Sun
23-06-2025
- Business
- The Sun
Bintulu TIC to add RM12B GDP, create 19,000 jobs by 2040
KUALA LUMPUR: The Transitioning Industrial Clusters (TIC) initiative in Bintulu, Sarawak, has the potential to contribute an additional RM12 billion to the country's gross domestic product (GDP), said Prime Minister Datuk Seri Anwar Ibrahim. He said this initiative is expected to create 19,000 new job opportunities and reduce carbon emissions by 21.35 million tonnes by 2040. 'This effort is in line with the state's aspirations towards net-zero carbon and strengthens Sarawak's position as the country's leader in the green industry,' he said in a post on X today. Earlier today, Anwar chaired the National Digital Economy and Fourth Industrial Revolution Council (MED4IRN) Meeting No 3/2025, an important forum for assessing progress and setting a new direction for the country's digital economy. The prime minister said that during the meeting, he was interested in the presentation regarding Sarawak's intention to develop a TIC in Bintulu. Anwar said the government agreed to adopt TIC as a national agenda as it is a strategic move that unites companies and public institutions to drive green economic growth, open up highly skilled job opportunities and reduce carbon emissions. Meanwhile, the meeting also discussed the implementation of GovTech Malaysia, including the MyGOV Malaysia application, which functions as the government's single digital gateway. 'Through the gateway, the rakyat can deal with various government agencies online without having to queue at the counter. 'This demonstrates the government's commitment to bring services closer to the people in a simple, efficient and transparent manner,' he said. In the same meeting, Anwar also stressed the importance of expanding the implementation of MyDigital ID to the private sector. 'We must ensure a secure, comprehensive and trusted digital ecosystem not only for government services, but also for every aspect of daily life and future business activities,' he said.
