Japan Seeks Gas Past 2050 as AI, Data Centers Set to Lift Demand
Japan is encouraging energy importers to secure liquefied natural gas past 2050 — the deadline the second-biggest buyer of the fossil fuel has set itself for net zero emissions.
Several of the country's largest LNG buyers are considering 20-year supply deals with projects that would start after 2030, according to people with knowledge of the discussions, who asked not to be named as the negotiations are private. They aim to deploy technology such as carbon capture and storage to mitigate the emissions from burning the super-chilled fossil fuel under Japan's national target.
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South Korea's Record Surplus With US Adds Strain to Tariff Talks
(Bloomberg) -- Supply Lines is a daily newsletter that tracks global trade. Sign up here. Security Concerns Hit Some of the World's 'Most Livable Cities' One Architect's Quest to Save Mumbai's Heritage From Disappearing JFK AirTrain Cuts Fares 50% This Summer to Lure Riders Off Roads NYC Congestion Toll Cuts Manhattan Gridlock by 25%, RPA Reports Taser-Maker Axon Triggers a NIMBY Backlash in its Hometown South Korea's current account surplus with the US surged to a record high last year, highlighting the challenge President Lee Jae Myung faces as he seeks to secure a trade deal with Donald Trump. The surplus reached $118.2 billion in 2024, the highest on record, the Bank of Korea said Friday. The figure has increased every year since 2019, reflecting deepening trade ties — and now potential friction — with Washington. The data serve as the latest reminder of the scale of South Korea's surplus with the US, with the Asian economy already on Trump's top 10 list of nations amplifying the US trade deficit. Lee, who secured the presidency earlier this month after protracted political turmoil following the impeachment of Yoon Suk Yeol, must now engage in trade negotiations with a US administration that favors hardline tactics and unilateral pressure. The two leaders were poised to talk on the sidelines of the Group of Seven summit in Canada this week, but the meeting was called off at the last minute as Trump left the event early amid rising tensions in the Middle East. Lee's nominee for prime minister said the Korean president is hoping to reach an agreement ahead of a July deadline that'll ramp up the baseline tariff rate the country faces. Exports remain vital to South Korea's economy, equivalent to more than 40% of gross domestic product last year. Its supplies of chips, smartphones, cars and batteries are also key elements for global supply chains. With so-called reciprocal tariff rates of 25% still on the table, the stakes for the negotiations are high. 'There's considerable uncertainty around how Trump or other nations will respond,' said Joonyoung Hur, an associate professor of economics at Sogang University. 'The impact on GDP could be significant, but it's hard to quantify with so many variables in play.' Hur estimates that such tariffs may shrink Korea's overall exports by 2%, adding that the maximum estimated impact on GDP growth could reach 0.7 percentage point. The US is Korea's second-largest export destination after China, accounting for 18.7% of outbound shipments worth $127.8 billion last year. The Office of the US Trade Representative said the country ran a $66 billion trade deficit with Korea in 2024, its eighth-largest bilateral gap. That was bound to draw the attention of Trump, who has framed persistent trade shortfalls as a national emergency. The reciprocal tariffs — if reinstated at 25% as announced on the so-called Liberation Day — could slash US-bound shipments by more than half, potentially dragging down Korea's GDP by over 1% by 2030, according to Bloomberg economist Hyosung Kwon. Even if Seoul manages to strike a deal, fallout may still follow. Closer alignment with the US could strain Korea's relationship with China, its biggest trading partner, which took in $133 billion worth of exports last year. Sector Implications Trade exposure underscores Korea's dependence on exports in a few key sectors. Semiconductor shipments totaled $141.9 billion in 2024, accounting for about 21% of South Korea's total exports, according to the Trade Ministry. Automobiles, the second-largest export item, exceeded 10%, while steel products neared 5%. Autos, which make up more than a quarter of Korea's exports to the US, are particularly exposed. Hyundai Motor Co., the country's top carmaker, faces greater risk than peers with local production due to its reliance on South Korean factories. It's already made efforts to mitigate that threat, announcing in March plans for a $21 billion investment in the US for vehicle production and other projects. Automobile exports are expected to be the most severely affected by US tariffs in both the short and long term, the BOK said in a May report. The central bank projected the nation's total goods exports to drop by 0.6%, with automobile shipments to the US sliding by as much as 4%. It also warned of longer-term risks as companies may relocate production to the US to avoid tariffs. Semiconductors have so far avoided direct sectoral tariffs, but face rising scrutiny as Washington considers broader tech-related trade measures. The US Commerce Department is expected to announce within weeks the results of its Section 232 investigations into industries deemed critical to national security, including semiconductors. Battery makers are also in the crosshairs. Despite building US-based joint ventures, South Korean firms rely heavily on components produced at home, exposing them to tariffs that could disrupt electric vehicle rollout plans for both South Korean and American automakers. In May, South Korea's trade surplus with the US fell to its lowest since July 2024, even as America's deficits with other Asian economies widened — a possible sign of shifting trade flows and strategic recalibration. South Korean companies in the automobile, semiconductor and battery industries invested billions of dollars to build out their supply chains in the US during the Biden administration in order to qualify for tax credits. Those investments are now poised to help partially shield them from Trump's tariffs, and may ultimately lead to a drop in goods exports from Korea to the US, narrowing the trade surplus. At the same time, growing direct investment by Korean firms in the US has led to increased income from dividends and interest, contributing to a larger surplus in the primary income account. Primary income also surged to a record last year, accounting for almost 16% of South Korea's surplus with the US, the BOK said. 'The impact of US tariff policy is gradually emerging,' Kim SungJun, director at the BOK's balance of payments team, said at a briefing Friday. 'And it is expected to become more pronounced in the second half of this year.' Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros Is Mark Cuban the Loudmouth Billionaire that Democrats Need for 2028? The US Has More Copper Than China But No Way to Refine All of It Can 'MAMUWT' Be to Musk What 'TACO' Is to Trump? 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10 minutes ago
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Philippine vehicle sales fall 1% in May
New vehicle sales in the Philippines declined by just over 1% to 39,775 units in May 2025 from 40,271 units a year earlier, according to member wholesale data released jointly by the Chamber of Automotive Manufacturers of the Philippines Inc (CAMPI) and the Truck Manufacturers Association (TMA). This was the second year-on-year decline so far this year, following the market's strong three-year rebound from the pandemic lows. The Philippine economy expanded by 5.4% year-on-year in the first quarter of 2025, slightly better than the revised 5.3% growth in the fourth quarter of 2024, underpinned by stronger domestic consumption, export growth and lower interest rates. The central bank cut its benchmark interest rate by a further 25 basis points in its June meeting to 5.25%, down from a peak of 6.5% last year, to support domestic growth. Rizal Commercial Banking Corporation's chief economist, Michael Ricafort, said in a statement: 'Vehicle sales have been weighed down recently by reduced consumer and business sentiment as the trade war is expected to reduce global trade, investments, employment, and the world economy.' In the first five months of 2025, the vehicle market was still up by almost 2% to 190,429 units compared with 187,191 units in the same period last year, driven by a 10% rise in commercial vehicle sales to 151,704 units, while sales of passenger cars fell by over 21% to 38,725 units. Separate industry data showed that sales of electrified vehicles amounted to 10,433 units year-to-date, including 8,536 hybrid electric vehicles (HEVs), 1,779 battery electric vehicles (BEVs) and 118 plug-in hybrids. Not all brands are covered in this data, however, including some key Chinese brands. Last year, the government expanded its EO12 zero-tariff incentive programme, which runs until 2028, from just zero emission vehicles to also include hybrid vehicles. Toyota reported a 6% sales increase to 91,652 units in the five-month period, helped by the recent launch of the new entry-level Hilux Tamaraw; followed by Mitsubishi Motors with 36,613 units (+4%); Nissan 9,879 units (-14%); Suzuki 8,913 units (+12%); and Ford 8,559 units (-30%). CAMPI remains optimistic that the vehicle market will continue to expand this year, to 500,000 units from 467,252 units in 2024. The association's president, Rommel Gutierrez, told reporters: 'We are encouraged by the industry's sustained growth, especially commercial vehicles. With strong momentum heading into the second half of the year, CAMPI remains confident in the automotive industry's positive performance.' "Philippine vehicle sales fall 1% in May" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
10 minutes ago
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With his ‘golden share' in U.S. Steel, Trump turns to a mechanism more common elsewhere in the world
U.S. President Donald Trump turned to a little-used mechanism—the 'golden share'—to ensure that a Japanese-owned U.S. Steel doesn't become a threat to national security. Nippon Steel, the U.S. steelmaker's soon-to-be owner, is granting Washington special authority over the company's operations, though the extent of those powers remains unknown. Yet while the practice is almost unheard of in the U.S., the 'golden share' has popped up in other economies as a way to ensure government oversight—or control—over a company's operations. On June 13, Trump issued an executive order clearing Nippon Steel's takeover of U.S. Steel, which had remained in limbo since the deal was first announced in 2023. Both the preceding Biden administration and the Trump administration had expressed concerns about foreign investment and ownership of a key U.S. industry. To mitigate these worries, the order announces that both Nippon Steel and U.S. Steel have agreed to enter into a National Security Agreement that gives the U.S. government a perpetual 'golden share' in the newly acquired company. In a late May interview with CNBC, U.S. Senator Dave McCormick (R-Penn.) said a Nippon Steel-owned U.S. Steel would have a 'U.S. CEO [and] a U.S. majority board,' and that the government would have to approve major structural changes to the company, such as to production levels or factory locations. Nippon Steel on Wednesday confirmed that it had granted the U.S. a 'golden share,' and said it also granted Washington the power to block production and jobs being transferred outside the U.S. The full terms of the National Security Agreement have not been released to the public. A golden share doesn't quite amount to 'total control,' as Trump advertised to reporters last week. But it does give the holder—whether a government or some other entity—the ability to outweigh all other shareholders in certain circumstances. McCormick, in his May interview, noted that the Nippon Steel control structure would be 'somewhat unique.' The U.S. government has not, historically, taken up ownership interest in private companies outside of moments of financial crisis. Even then, the arrangements have been temporary, such as in 2008, when Washington took a controlling share in major auto companies as part of its emergency bailouts. Yet the practice is more common outside the U.S. The term 'golden share' first appeared in the 1980s, when the Thatcher administration began a campaign to privatize many of its state-owned enterprises. The share was meant to be a compromise solution, allowing the U.K. government a continued say in how these newly privatized companies were to be run. As the privatization bug spread to mainland Europe, many European governments also took special governance rights to retain state influence in previously nationalized companies. But the European Court of Justice struck down several of these arrangements in the early 2000s, ruling that golden shares constituted unjustified 'restrictions on the free movement of capital,' contravening the Maastricht Treaty, the European Union's founding document. In 2003, the UK was ordered to give up its golden share in the British Airports Authority. Spain relinquished its governance rights over an array of businesses in telecoms, banking, and tobacco. And in 2007, Germany sold its golden share in Volkswagen. Still, the UK has retained golden shares in its defense sector, namely in Rolls-Royce, BAE Systems, and two Babcock dockyards. And Westminster may be considering the practice once again, recently acquiring a golden share in Royal Mail as a condition of its sale to the Czech EP Group finalized this April. China embraced something similar to the 'golden share' in the early 2010s to exert some state oversight over the country's budding tech sector. So-called special management shares granted state-backed entities authority over key decisions without requiring full state ownership (as is common in several other sectors of the Chinese economy, such as media). The Chinese government has taken small stakes in companies like Sina Weibo, which offers an X-like microblogging service, and Kuaishou, a livestreaming platform. It's also reportedly taken small stakes of units in Chinese tech giants like e-commerce giant Alibaba, gaming publisher Tencent, and TikTok parent ByteDance. Russia has also welcomed the golden share, which again arose during a domestic privatization drive. In 2019, Yandex, the most popular search engine in Russia, granted its golden share to a 'Public Interest Foundation,' which outside observers view as a proxy for government oversight. The Foundation has the authority to temporarily replace Yandex's management. In his late May interview, McCormick suggested that the Nippon Steel arrangement could 'be a model for transactions that really affect our national security.' Industrial policy is quickly becoming a bipartisan issue in the U.S., with both Democrats and Republicans supporting measures to protect U.S. manufacturing (even if they differ on the best policies to achieve that). Both sides of the political divide criticized Nippon Steel's original bid for U.S. Steel as a threat to national security. Other economists have suggested golden shares could be a way to maintain oversight of sectors that pose a systemic risk to the U.S. economy. In 2023, amid concerns that troubles at Silicon Valley Bank could spiral into a broader financial crisis, Saule Omarova, a onetime Biden nominee for a senior Treasury position, suggested that the U.S. government consider a golden share in systemically important banks. 'It would be structured to serve a single purpose: to give the American public a seat at the table where banks make decisions on how to manage—or perhaps not manage—the risks we ultimately may have to bear,' she suggested in an opinion piece for the New York Times. U.S. Steel's new owner isn't too worried about how Washington's special powers will affect the business. 'We retain sufficient managerial freedom,' Nippon Steel Eiji Hashimoto said to reporters on Thursday, and added that the 'golden share' was his company's idea. 'We won't be constrained in pursuing anything we do.' Nippon Steel shares are down about 8% for the week so far. 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