India braces for further US tariffs over trade ties with Russia
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Business Times
26 minutes ago
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US to leave UN cultural agency Unesco again
[PARIS] The US will leave the United Nations' culture and education agency Unesco as President Donald Trump continues to pull his country out of international institutions he has long criticized, two European diplomats said. The White House did not immediately respond to a request for comment outside regular business hours. The move is a blow to the Paris-based agency, founded after World War Two to promote peace through international cooperation in education, science, and culture. The New York Post also reported on the US withdrawal, citing a White House official. Trump took similar steps during his first term, quitting the World Health Organization, the UN Human Rights Council, a global climate change accord and the Iran nuclear deal. Joe Biden reversed those decisions after taking office in 2021, returning the US to Unesco, the WHO and the climate agreement. With Trump now back in the White House, the US is once again pulling out of these global bodies. He has already decided to withdraw the US from the WHO and halt funding to the Palestinian relief agency UNRWA as part of a review of the US' participation in UN agencies, due to be concluded in August. Unesco is best known for designating World Heritage Sites, including the Grand Canyon in the US and the ancient city of Palmyra in Syria. The US initially joined Unesco at its founding in 1945 but withdrew for the first time in 1984 in protest against alleged financial mismanagement and perceived anti-US bias, returning almost 20 years later in 2003 under President George W Bush, who then said the agency had undertaken needed reforms. Unesco's full name is the United Nations Educational, Scientific and Cultural Organization. The US provides about 8 per cent of Unesco's total budget, down from about 20 per cent at the time Trump first pulled the US out of the agency. REUTERS
Business Times
26 minutes ago
- Business Times
Trump targeting trade loopholes risks 70% of China exports to US
[WASHINGTON] US President Donald Trump's effort to target China through its trading partners across global supply chains threatens to erode the country's growth and most of its exports to the US, according to Bloomberg Economics. China has increasingly relied on third countries for the manufacturing of final products or components, a trend that accelerated following Trump's first trade war and his imposition of higher restrictions on the world's second-largest economy. China's share of total value-added manufacturing of goods destined for the US through countries including Vietnam and Mexico surged to 22 per cent in 2023 from 14 per cent in 2017, according to Bloomberg Economics. If Trump is successful in targeting transshipments via higher levies or supply chain requirements, it would threaten 70 per cent of China's exports to the US and more than 2.1 per cent of the Asian country's gross domestic product, the analysts found. There is a risk of additional economic damage if the restrictions weigh on countries' desire to do business with China, they said. 'Trade flows via third countries are substantial and have helped cushion the blow from existing US tariffs,' Bloomberg Economics analysts Chang Shu, Rana Sajedi and David Qu wrote in a research note on Tuesday (Jul 22). 'Tighter controls on these shipments would increase the damage from the trade war and could erode growth opportunities in the long term.' The US is increasingly adding pressure on China through other countries. In a slew of letters to countries announcing levies by Aug 1 unless bilateral trade deals are agreed, the administration threatened even higher tariffs for goods found to be transshipped. While not providing further details, this could allow the White House to target a broader range of China's exports to the US. The largest countries that China relies on for shipping goods to the US include Mexico and Vietnam, with the European Union also a key hub. China's role in supplying the world through third parties could shape US agreements with trading partners. There are signs of this already taking place: the US trade deal with the UK includes requirements on supply-chain security and ownership in sensitive sectors. At the same time, Shu and economists said that 'Uncertainty clouds how rigorously the US will be able to enforce transshipment restrictions. US definitions of localised goods remain vague, and details on verification are lacking.' BLOOMBERG
Business Times
26 minutes ago
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Temasek's Azalea to issue Astrea 9 PE-backed bonds; interest rates to be decided
[SINGAPORE] Azalea Asset Management, an indirect subsidiary of Temasek Holdings, will be launching a new series of bonds backed by 40 private equity (PE) funds. The indicative total size of the new issuance, Astrea 9 Private Equity Bonds, is US$780 million. It is about 48 per cent of the underlying PE portfolio valued at US$1.63 billion as at end-December 2024. The funds invested in 1,086 companies in various industries, including information technology, industrials, healthcare, financials and consumer discretionary. The coupon rates of the bonds will be announced later. The issuance will have three classes of bonds: A-1, A-2 and B Payment-in-Kind (PIK). However, only Class A-1 and A-2 bonds will be made available to retail investors, according to a preliminary prospectus lodged on Tuesday (Jul 22) at the Monetary Authority of Singapore's Opera site. The indicative size of the lowest-risk tranche of Class A-1 bonds is S$615 million, comprising S$400 million for the public offer and a placement of another S$215 million to institutions and other investors. 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 The Class A-1 tranche is expected to be rated A+sf by Fitch, while the Class A-2 tranche is expected to be rated Asf. The 'sf' suffix refers to structured financial instrument. The indicative size of the Class A-2 bonds is US$200 million. It comprises US$50 million for the public offer and a placement of another US$150 million. Both classes of bonds are subject to a mandatory call after five years in 2030 and a legal maturity of 15 years in 2040. Based on the tentative timeline in the prospectus, the public offer for Class A-1 and A-2 bonds will open for applications on Jul 31 at 9 am and close at noon on Aug 6. The minimum application for retail is S$2,000. The issuance of the Class B PIK bonds has an indicative size of US$100 million, all of which will be offered to institutions and other investors through a placement. The Class B bonds do not have a scheduled call date and they are expected to mature in August 2040. The expected rating for the Class B PIK tranche is BBBsf by Fitch.
