Investors Edgy on Geopolitical Tensions, But History Shows Stocks Weather Clashes
Before the trading day starts we bring you a digest of the key news and events that are likely to move markets. Today we look at:
Good morning, this is Ashutosh Joshi, an equities reporter in Mumbai. Indian markets are poised for another volatile session amid President Donald Trump's planned announcement of a 'major' trade deal today. Ongoing tensions with Pakistan may continue to impact investor sentiment. Market participants will be closely monitoring the earnings reports of Larsen & Toubro and Asian Paints for insight into infrastructure spending and consumption trends.
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Yahoo
20 minutes ago
- Yahoo
US Steel Sale to Nippon Steel Poised to Close After Trump Deal
(Bloomberg) -- Nippon Steel Corp. won conditional US approval for its $14.1 billion purchase of United States Steel Corp., capping a lengthy saga in a tie-up that will create one of the world's largest steel companies. Shuttered NY College Has Alumni Fighting Over Its Future Trump's Military Parade Has Washington Bracing for Tanks and Weaponry NYC Renters Brace for Price Hikes After Broker-Fee Ban Do World's Fairs Still Matter? As Part of a $45 Billion Push, ICE Prepares for a Vast Expansion of Detention Space In a release Friday, the companies said they've committed to a national security agreement proposed by the Trump administration, which earlier cleared the deal subject to those terms. As part of the $55-per-share deal, the Japanese company will invest an additional $11 billion by 2028, including an initial commitment in a greenfield project that would be completed after 2028. Nippon had previously raised its pledged additional investment in an effort to win President Donald Trump's approval. Nippon Steel will also spend an extra $3 billion after 2028 for a new steel mill, according to people familiar with the matter. That would push the total additional investment — on top of the purchase price — to $14 billion. Earlier Friday, Trump formally opened the door to approving the sale of US Steel by submitting the agreement to the companies and amending former President Joe Biden's move to block the agreement in an executive order. The president's action cleared the sale so long as the companies comply with the government's terms. 'President Trump promised to protect American Steel and American Jobs — and he has delivered on that promise,' White House spokesman Kush Desai said in a written statement. 'Today's executive order ensures US Steel will remain in the great Commonwealth of Pennsylvania, and be safeguarded as a critical element of America's national and economic security.' Nippon Steel and US Steel in the release said they had received regulatory approvals and that 'the partnership is expected to be finalized promptly.' The deal is expected to close by June 18, the merger agreement deadline, Japan's Nikkei reported on Saturday, without saying where it got the information. Trump earlier this week said the US would receive a so-called golden share in the post-transaction company, though it's not clear what that would entail. The companies confirmed that the US would get a golden share but didn't elaborate. The terms of the security agreement include significant and unprecedented US control measures, as well as certain control over some board seats and requirements that some leadership roles go to American citizens, according to a person familiar with the pact, speaking on condition of anonymity. The golden share does not include an equity stake in the company, the person said. Earlier: Nippon Steel Plans $6 Billion Investment in Its Japanese Mills 'The Japanese government believes that this investment will strengthen the ability of the Japanese and US steel industries to generate new innovation and lead to the strengthening of the close partnership between Japan and the US,' Japan's Minister of Economy, Trade and Industry, Yoji Muto, said in a written statement. 'We welcome the decision of the US government.' Trump and Biden as well as former Vice President Kamala Harris campaigned against the deal, before the former president blocked it in January. Trump has since reversed his position, insisting that the agreement would preserve steel jobs in the US. The text of the security agreement hasn't been released. Trump and others have previously announced other elements of the deal, including bonuses to steelworkers, a requirement to keep existing blast furnaces running for a decade, and government veto power to retain control over the board of the US Steel subsidiary. Trump has also hailed the accord as vindication of his trade policies, which have seen the administration levy tariffs in a bid to pressure companies to shift more manufacturing to the US. Japan has been engaging in negotiations with the US over trade in a bid to avoid higher levies Trump has threatened. Trump's decision to champion Nippon Steel's bid offers to provide fresh momentum for those talks. Trump held a rally in Pennsylvania two weeks ago, at US Steel's iconic Mon Valley facility, celebrating the deal with a crowd of steelworkers, even though it had not yet been finalized. Earlier: US, Mexico Near Deal to Cut Steel Duties and Cap Imports Trump also used that event to announce he was doubling his tariffs on steel and aluminum, raising them to 50% from 25%. Since that rally, government officials, company executives and deal advisers worked to hammer out the finer details and get the final signatures. The deal creates a combined company that will be the world's second-largest steelmaker. It will become a formidable domestic competitor to Nucor Corp., which for a generation has dominated the American steel industry. The acquisition also clears the way for enhanced steelmaking in areas the US has lagged in recent years, including the type of steel critical to bolster ailing electric grids across the country. The Japanese steelmaker's takeover became a political lightning rod after the leadership of the United Steelworkers – based, like US Steel itself, in Pittsburgh – staunchly opposed the tie-up. Biden sided with them, as did Trump. The deal has taken a winding path with extensions, a Biden block, a legal fight, and then Trump's decision to reexamine it before ultimately clearing it. Nippon Steel and US Steel have steadily tried to address worries, with Vice Chairman Takahiro Mori making repeated visits to the US to clinch the deal. Divisions within the union were laid bare through the process, with local union leaders expressing support for the deal and breaking with their national leadership. Trump's reversal was a few months in the making. In February, he surprised the parties by blessing some kind of a minority stake — an announcement they hadn't been privy to and didn't understand. The deal, then and now, was built on Nippon Steel buying US Steel entirely. The question was mitigation measures. The president said he supported a 'planned partnership' between the companies on May 23, without providing details of an announcement that appeared to bless the original deal with additional mitigation measures. --With assistance from Jennifer A. Dlouhy, Meghashyam Mali and Yoshiaki Nohara. (Updates with potential closing timeframe in eighth paragraph.) American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software New Grads Join Worst Entry-Level Job Market in Years As Companies Abandon Climate Pledges, Is There a Silver Lining? US Tariffs Threaten to Derail Vietnam's Historic Industrial Boom ©2025 Bloomberg L.P.
New York Times
an hour ago
- New York Times
Al Ahli make contact with Ange Postecoglou, former Tottenham boss among candidates if managerial change made
Al Ahli have made contact with former Tottenham Hotspur boss Ange Postecoglou and he is among the candidates the Saudi Pro League side are considering if a managerial change is made. Former Barcelona head coach Xavi is also among the potential options being considered by Al Ahli in the event of head coach Matthias Jaissle departing the club. Advertisement Jaissle's Al Ahli contract runs until 2026 and he has turned down multiple offers of a new deal, leading to the club opening negotiations with other candidates, and talks are moving quickly with Postecoglou. Jaissle's potential departure would be complicated as he led the club to AFC Champions League success in May and he remains a popular figure with supporters. Postecoglou was dismissed by Tottenham in June despite him winning the club's first major trophy in 17 years. The Australian led Spurs to victory in the Europa League final over Manchester United in May — the club's first piece of silverware since 2008 — but they finished 17th in the Premier League. Thomas Frank has since been appointed his successor. Xavi, meanwhile, has been out of management since being sacked by Barcelona in May 2024. Jaissle's potential successor would inherit a squad at Al Ahli that includes former Manchester City winger Riyad Mahrez, former Liverpool forward Roberto Firmino and former Brentford striker Ivan Toney. They are one of four clubs Saudi's Public Investment Fund (PIF) took control of in the summer of 2023, leading to significant transfer spending and an influx of overseas talent into the division. A move to Al Ahli would represent Potecoglou's first coaching role in Saudi Arabia, having managed in Australia, Greece, Japan, Scotland and England. He joined Tottenham in the summer of 2023 and led the club to a fifth-place finish during his debut season in charge. However, Tottenham won only 11 league games during the 2024-25 campaign and endured a pair of six-game winless runs over April and May, and December and January. Their total of 22 losses was the most of any team not to be relegated in a 38-game Premier League season. Postecoglou did have to contend with an extensive injury list, with Dominic Solanke, Brennan Johnson, Yves Bissouma, Cristian Romero, Micky van de Ven, Destiny Udogie, Lucas Bergvall, Dejan Kulusevski, Guglielmo Vicario, Richarlison, James Maddison, Radu Dragusin and Wilson Odobert all missing periods. Advertisement Xavi, meanwhile, had announced in January 2024 his intention to leave Barca at the end of the 2023-24 season before being persuaded to reverse his decision in April. He was then dismissed just 30 days after April's announcement that he would see out his contract until 2025. He won the La Liga title during his debut season in charge of Barca but the club trailed Real Madrid by 10 points the following campaign. Jaissle, 37, joined Al Ahli from Red Bull Salzburg in 2023 and led them to third in the Saudi Pro League during his debut season, followed by a maiden AFC Champions League title the following campaign.
Yahoo
an hour ago
- Yahoo
Trump Just Revoked California's EV Rules. How Much Is California To Blame?
President Donald Trump just revoked California's permission to enforce its nation-leading clean-car rules — and Mary Nichols understands why. "No one likes being regulated," she told me ahead of Thursday's Oval Office signing ceremony. Nichols knows that better than almost anyone. As head of California's Air Resources Board for 17 years, she brought the world's biggest automakers to heel using the state's unique authority to go further than the federal government in setting vehicle emissions standards. It's those same automakers who lobbied Trump to "rescue the U.S. auto industry from destruction by terminating California's electric vehicle mandate once and for all," as Trump put it Thursday. It didn't have to get to this point. California officials had been in talks with automakers prior to the November election about how to keep them on board, but the state overplayed its hand, Nichols said. "Many people were acting on the assumption that it was going to be the Democrats continuing in power," she said. "So the state felt like they had all the cards in their hand, and then after the election, it was pretty hard to reset the conversation." To hear Nichols tell it, California may have gone too far this time in nudging the industry to ever-higher sales of zero-emission vehicles. The rules would have required automakers to hit increasing percentages — 35 percent by model year 2026 and 68 percent by model year 2030 — before reaching 100 percent of new-car sales in 2035. Maybe that would have worked if it were just about California. But a dozen other states are signed on to California's targets, and they have been slower and less generous with incentives and EV charging infrastructure. Where California has more than a quarter of its new car sales coming from EVs, New Jersey is at 15 percent, and New York is under 12 percent, according to the industry's latest figures. "They were definitely having issues with the California program because they didn't think they could meet the sales numbers in the mandate, especially [Gov. Gavin] Newsom's target of nothing but ZEVs with a deadline attached to it," Nichols said. "That was scary, and even the interim targets were going to be hard to meet." The pendulum has swung against California before: The George W. Bush administration was the first to attempt to deny California's permission from the U.S. Environmental Protection Agency to require automakers to sell increasing percentages of zero-emission vehicles, and Trump went further in his first term by attempting to revoke the state's already-issued authority. But Republicans had never resorted to doing it through Congress, via an untested maneuver that congressional watchdogs have warned is likely illegal but that still drew 35 Democratic votes in the House and one in the Senate (Sen. Elissa Slotkin (D-Mich.), in the tradition of Detroit's John Dingell). It's a far cry from the bipartisan consensus that reigned when President Richard Nixon famously signed the Clean Air Act, which set federal air pollution levels for the first time but gave California permission to continue going further, owing to its decade-plus of vehicle emissions rules aimed at the smoggy Los Angeles basin. The automakers have been steadily lobbying against the rules since then, with a brief ceasefire from 2009-16, when ten automakers and the United Auto Workers signed a nonaggression pact in President Barack Obama's Rose Garden with California Gov. Arnold Schwarzenegger and the EPA. That it happened at the same time that the federal government was taking an equity stake in General Motors was no coincidence, said Nichols, who helped broker the pact. "They saved them from bankruptcy," she said. California has less recourse this time around. Where Newsom signed deals in 2019 with Ford, Volkswagen, Honda, BMW and Volvo to abide by the state's rules even in the event of federal cancellation, he now only has Stellantis, which signed a separate agreement last year that goes through model year 2030. And several of the state's allies are peeling off. California had 12 other states signed on to follow its lead as of last year, but it now has 10, after Republican-led Virginia dropped out and Vermont delayed enforcement by 19 months. And Democrats are getting cold feet, too: Maryland Gov. Wes Moore signed an executive order in April delaying enforcement, and Democratic lawmakers in New York introduced a bill this year to delay their participation by two years. (California and the other 10 states immediately sued Thursday to preserve the emissions standards.) "If it was only California, I think [automakers] wouldn't have been as eager to jump in on the federal level and work with the Republicans, but it's the fact it's the other states that had the California standards that were killing them, especially New York," Nichols said. That echoes the automakers' argument. "The problem really isn't California," John Bozzella, CEO of the Alliance for Automotive Innovation, said in a statement after the Senate's vote last month to overturn the rules. "It's the 11 states that adopted California's rules without the same level of readiness for EV sales requirements of this magnitude."
