US: S&P 500, Nasdaq touch record highs after tame inflation data
[NEW YORK] The S&P 500 and the Nasdaq opened at record highs on Friday (Jun 27) as a benign inflation report supported hopes for a dovish policy outlook from the US Federal Reserve this year.
The Dow Jones Industrial Average rose 118.8 points, or 0.27 per cent, at the open to 43,505.6.
The S&P 500 rose 9.7 points, or 0.16 per cent, at the open to 6,150.7, while the Nasdaq Composite rose 49.4 points, or 0.24 per cent, to 20,217.264 at the opening bell. REUTERS
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Straits Times
28 minutes ago
- Straits Times
Putin says Russia plans to cut military spending from next year
FILE PHOTO: Russian President Vladimir Putin chairs a meeting dedicated to the foundation of cultural, educational institutions and museums via a video link at his residence outside Moscow, Russia, June 25, 2025. Sputnik/Gavriil Grigorov/Pool via REUTERS/ File Photo MOSCOW - President Vladimir Putin said on Friday that Russia was looking to cut its military expenditure from next year, contrasting that with NATO's plan to ramp up defence spending over the next decade. NATO allies on Wednesday agreed to raise their collective spending goal to 5% of gross domestic product in the next 10 years, citing what they called the long-term threat posed by Russia and the need to strengthen civil and military resilience. In his first reaction to that move, Putin told a press conference in Minsk that the NATO spending would go on "purchases from the USA and on supporting their military-industrial complex", and this was NATO's business, not Russia's. "But now here is the most important thing. We are planning to reduce defence spending. For us, next year and the year after, over the next three-year period, we are planning for this," he said. Putin said there was no final agreement yet between the defence, finance and economy ministries, "but overall, everyone is thinking in this direction. And Europe is thinking about how to increase its spending, on the contrary. So who is preparing for some kind of aggressive actions? Us or them?" Putin's comments are likely to be greeted with extreme scepticism in the West, given that Russia has massively increased defence spending since the start of the Ukraine war. The conflict shows no sign of ending and has actually intensified in recent weeks, as negotiations have made no visible progress towards a ceasefire or a permanent settlement. Putin said Russia appreciated efforts by U.S. President Donald Trump to bring an end to the war. "He recently stated that it turned out to be more difficult than it seemed from the outside. Well, that's true," Putin said. Trump said this week that he believed Putin wanted to find a way to settle the conflict, but Ukraine and many of its European allies believe the Kremlin leader has no real interest in a peace deal and is intent on capturing more territory. Putin said Russian and Ukrainian negotiators were in constant contact, and Moscow was ready to return the bodies of 3,000 more Ukrainian soldiers. ECONOMIC SLOWDOWN Russia is seeing a sharp slowdown in economic growth as the budget comes under pressure from falling energy revenues and the central bank is trying to bring down inflation. Russia hiked state spending on national defence by a quarter in 2025 to 6.3% of gross domestic product (GDP), the highest level since the Cold War. Defence spending accounts for 32% of total 2025 federal budget expenditure. Defence plants have been working round-the-clock for the past several years, and the state has spent heavily on bonuses to attract soldiers to sign up and on compensation for the families of those who are killed. Putin acknowledged that Russia had paid for the military spending increase with higher inflation. The finance ministry raised the 2025 budget deficit estimate to 1.7% of gross domestic product in April from 0.5% after reducing its energy revenues forecast by 24%, and it plans to tap into fiscal reserves this year to balance the budget. The next draft budget is due to appear in the autumn. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
an hour ago
- Straits Times
China's rare earths are flowing again, but not freely
China's rare earths are flowing again, but not freely BERLIN/BEIJING - The threat of mass shutdowns across the automotive supply chain is fading as Chinese rare earth magnets begin to flow, though automakers and suppliers say production plans still face uncertainties and a continued risk of shortages. European suppliers have received enough licences to avoid the widespread disruptions predicted earlier this month but hundreds of permits remain pending, said Mr Nils Poel, head of market affairs at supplier association CLEPA. The rate of issuance is 'accelerating' and has risen to 60 per cent from 25 per cent, he said, but cases where the end users are based in the United States, or where products move through third countries like India, are taking longer or not being prioritised. 'Overall, the feeling is that we probably will still have production in July and that the impact will be manageable,' he said. 'Maybe here and there a production line will be affected, but we have avoided that for the moment.' Volkswagen said in a statement to Reuters its supply of rare earth components was stable, while rival Stellantis said it had addressed its immediate production concerns. China restricted exports of seven rare earths and related magnets in April in retaliation for US tariffs. Three months later there remains huge uncertainty about how it intends to police its opaque and complex export licensing system. Since the restrictions were imposed, rare earth magnet exports from China have fallen roughly 75 per cent, forcing some automaker production lines to halt in Asia, Europe and the US. From 'full panic' to 'bare minimum' The White House said on June 26 it had signed a deal with China to speed up rare earth approvals without providing details. Beijing said hours later both parties had confirmed details of the deal struck in London earlier this month, which was meant to resolve the rare earth issue, and it would process export licences in accordance with the law. Neither party detailed any changes to the existing export licensing system. US Treasury Secretary Scott Bessent said in an interview with Fox Business Network on June 27 that, under the agreement announced on June 26, rare earth shipments to the US from China would be expedited to all companies that have previously received them on a regular basis. 'I am confident now... the magnets will flow,' Mr Bessent said. 'This is a de-escalation.' Two weeks ago the car industry was in a 'full panic', but licence approvals by China have sped up and there is now less threat of a sudden stop, according to an executive at a leading US automotive supplier and a source with knowledge of the supply chain at a major European carmaker. Both asked not to be named because of the sensitivity of the issue. China is approving the 'bare minimum' of critical licences for European firms to avoid production stoppages, a European official told Reuters, also speaking on condition of anonymity. US magnet maker Dexter Magnetic Technologies, which has defence clients, among others, has received just five of 180 licences since April, chief executive officer Kash Mishra told Reuters, adding those were intended for non-defence sectors. 'It's an extended delay,' he said. 'It's 45 days trying to get the paperwork right for the supplier, and then it's 45 more days or so before any licences are granted.' REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
an hour ago
- Straits Times
London climate week receives boost as Trump policies weigh on New York event
FILE PHOTO: Britain's Prince William, Prince of Wales walks with former Mayor of New York, Michael R. Bloomberg during the \"Leading with Impact\" event, as part of London Climate Action Week, at Bloomberg headquarters in London, Britain, June 24, 2025. REUTERS/Carlos Jasso/Pool/File Photo LONDON - London's climate week attracted record attendance, bolstered by the cloud hanging over its sister event in New York in September as the U.S. government turns its back on efforts to stop global warming and tightens entry requirements. The annual London Climate Action Week (LCAW), which ends on Sunday, more than doubled in size compared to the 2024 edition, hosting 700-plus events and more than 45,000 attendees. That was helped by the UK's more robust stance on climate action and support for visitors from developing countries, two dozen business, political and civil society sources told Reuters. "We have gone much bigger on LCAW this year - we are hosting several events and putting considerably more effort (in) than in the past. If we do send someone to New York, it will almost certainly just be an American citizen member of our team," said Alexis McGivern, Head of Stakeholder Engagement at Oxford Net Zero. Under President Donald Trump, the United States has left a global deal to lower climate-damaging carbon emissions, cut development aid, rowed back on environmental standards and moved to slash support for green technologies. By contrast, the British government was present across multiple events during LCAW, with energy secretary Ed Miliband saying he wanted Britain to be a "clean energy superpower" and to "get off the roller coaster of fossil fuel markets". 'YOU CAN TALK FRANKLY' Given the U.S. pushback, Hindou Oumarou Ibrahim, a U.N. Indigenous Peoples representative and climate change expert, said London offered more freedom to discuss climate change, diversity and human rights. "You can talk frankly with the government of the UK or any government here in London without being afraid of how you get treated, or targeted," she said. Philanthropists and private investors, too, are able to speak more openly without being targeted politically, or risking damaging business interests, she said. "This year the New York Climate Week is going to be very challenging," she said. "Not only to indigenous peoples, but even to governments. There are so many barriers that are making people say, let's act now in London." Among steps taken in London was a push by governments for indigenous peoples' land rights to be better protected and a plan to encourage companies to buy more carbon credits. Chief among the concerns about New York, particularly for civil society representatives, was whether they could even get in. TRAVEL BANS This month, the U.S. banned travellers from countries including Afghanistan, Congo Republic and Somalia - many exposed to rising extreme weather events and in need of the most help - and may yet add more. Ibrahim, whose home country Chad is also on the list, said she would travel using her diplomatic passport but was uncertain if she would be allowed in - a concern flagged by half a dozen other LCAW attendees. Helen Clarkson, CEO of Climate Group, which runs New York Climate Week, said she understood it would be harder for participants from certain countries to attend but that many businesses, governments and civil society were planning to come and were "super up for New York." " is shaping up similar to other years," she said. "This is a critical moment before COP." COP30 will take place in Brazil in November. REUTERS Find out more about climate change and how it could affect you on the ST microsite here.
