Latest news with #USgrowth
Yahoo
09-07-2025
- Business
- Yahoo
Temasek's portfolio value hits record high; says US risks likely peaked
By Yantoultra Ngui SINGAPORE (Reuters) -Singapore's state investor Temasek reported on Wednesday an 11.6% year-on-year jump in its net portfolio value to a record S$434 billion ($340 billion), and said risks around U.S. immigration, tariff and fiscal tightening policies had likely peaked. U.S. President Donald Trump opened a new phase on Monday in his trade war, telling partners from powerhouse suppliers such as Japan and South Korea to minor players including Malaysia that they face higher tariffs from August 1. "We still have to be watchful of the tariff developments over the next few weeks and months," Lim Ming Pey, Temasek's joint head of corporate strategy, told Reuters in a briefing. Temasek's chief investment officer Rohit Sipahimalani said tariffs were not expected to return to the levels seen on Trump's "Liberation Day" on April 2, while some earlier risks such as fiscal tightening that would slow U.S. growth had eased with the passage of his sweeping tax-cut and spending bill. "Generally speaking, the slowdown in growth that we're seeing right now because of tariff uncertainty, we should see a recovery in growth towards the end of the year, particularly as the Fed cuts rates and more deregulation happens, and there's more clarity around tariffs," Sipahimalani said. "The challenge in the U.S. is valuations." Nevertheless, Lim said Temasek saw "bright spots, such as the U.S.'s world-class capabilities in AI, which will have a transformative impact across all sectors." The U.S. continues to be the largest destination for Temasek's capital, the company said. The Americas made up 24% of its portfolio at the end of its financial year on March 31, versus 22% on the same date a year ago. CHINA The rise in Temasek's net portfolio value was the second consecutive annual increase, and largely driven by the strong performance of its listed Singapore-based companies and direct investments in China, India and the United States. Temasek continues to believe in the longer-term prospects of China, Lim said. China is Temasek's third largest market in terms of underlying exposure at 18% as at end-March, after Singapore at 27% and the Americas at 24%. "We see opportunities in the green economy and life sciences innovation, and also in leading domestic brands which continue to scale and grow in a resilient manner," she added. Moving forward, Temasek said it was increasing focus on investing in companies with stable cash flows and earnings, as well as access to large domestic markets that are better shielded from tariffs and geopolitical risks. It is also focusing on infrastructure and artificial intelligence. "We do not only make investments ourselves, we also invest in AI-related funds," Chia Song Hwee, Temasek's deputy CEO, said. Temasek's investments in the AI sector include companies such as Nvidia, Databricks and Veeam. It recently joined a consortium backed by Microsoft, BlackRock and tech investment company MGX to invest and expand AI infrastructure, according to BlackRock's investor day presentation slides in June. ($1 = 1.2766 Singapore dollars) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
NHK
04-07-2025
- Business
- NHK
Economist tips yen to gain to 130-level against dollar
Currency analyst Yamamoto Masafumi predicts slowing US growth will push the yen to the 130 level against the dollar.
Russia Today
03-06-2025
- Business
- Russia Today
Major economy facing sharpest slowdown named
Of all major economies facing a downturn, the US is set to suffer the sharpest drop, the Organization for Economic Co-operation and Development (OECD) has warned. Higher tariffs and mounting trade policy uncertainty are key factors impeding growth, according to analysts. In its latest global outlook, released on Tuesday, the OECD said the world economy is heading into its weakest stretch since the Covid-19 pandemic. US growth is projected to slow from 2.8% in 2024 to 1.6% in 2025 and 1.5% in 2026. As recently as March, the OECD had expected a 2.2% expansion for next year. 'This reflects the substantial increase in the effective tariff rate on imports and retaliation from some trading partners, high economic policy uncertainty, a significant slowdown in net immigration, and a sizeable reduction in the federal workforce,' the OECD said. Since returning to office in January, US President Donald Trump has imposed sweeping tariffs aimed at protecting domestic manufacturing. The campaign culminated on April 2 with 'Liberation Day' measures, including a blanket 10% levy on all imports and steeper rates for goods from China, Mexico, Canada, and EU member states, citing trade imbalances. Some of the duties have since been paused to allow time for negotiations. Trump has defended the strategy as a means to reshore jobs to the US and reduce the country's trade deficit. The OECD expects US inflation to rise to nearly 4% by end-2025 and remain above the Federal Reserve's 2% target into 2026 – likely delaying any interest rate cuts until next year. It also highlighted a 'notable cooling' in real GDP growth alongside rising inflation expectations. Alvaro Pereira, the OECD's chief economist, has urged governments to strike deals to reduce trade barriers, warning of serious consequences if they fail. 'Otherwise, the growth impact is going to be quite significant,' he said, adding, 'This has massive repercussions for everyone.' According to the report, global growth is projected at 2.9% in both 2025 and 2026 – below the 3%-plus pace seen every year since the pandemic-induced slump in 2020. The Paris-based body has downgraded forecasts for nearly all major economies compared with its December outlook, warning that 'weakened economic prospects will be felt around the world, with almost no exception.' Apart from the US, the slowdown is expected to be most pronounced in Canada, Mexico, and China.
