US: Wall St opens lower as Middle East tensions rise
[NEW YORK] Wall Street's main indexes opened lower on Thursday (Jun 12) as signs of rising tensions in the Middle East hurt risk sentiment and investors sought more clarity on Washington's recent trade deals with China.
The Dow Jones Industrial Average fell 128.4 points, or 0.30 per cent, at the open to 42,737.36.
The S&P 500 fell 12.3 points, or 0.20 per cent, at the open to 6,009.9, while the Nasdaq Composite dropped 37.0 points, or 0.19 per cent, to 19,578.874 at the opening bell. REUTERS
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Straits Times
an hour ago
- Straits Times
Busiest US seaport takes hit from 145% China tariffs, worries remain
May 2025 imports to the Port of Los Angeles are down 9 per cent year-on-year. PHOTO: REUTERS LOS ANGELES - Imports to the busiest US seaport in Los Angeles dropped 9 per cent year-on-year in May and could remain muted through the remainder of 2025, after companies responded to President Donald Trump's 145 per cent tariffs on China by cancelling or putting holds on shipments, according to port officials. China is the top US supplier of seaborne goods, and Los Angeles is the No. 1 port for those imports. Domestic businesses ranging from retailer Walmart to automaker Ford rely on the toys, furniture and auto parts that land on its docks. The Port of Los Angeles handled the equivalent of 355,950 20-foot shipping containers of imports in May, when the 145 per cent tariffs began to show up in data. 'May marked our lowest monthly volume in over two years,' the port's executive director Gene Seroka said on June 13 . 'Many importers just simply slammed on the brakes.' The ports of Los Angeles and Long Beach handle 31 per cent of US ocean trade and are a barometer for US economic activity. Long Beach has not reported May results. Its CEO previously forecast a more than 10 per cent drop in May imports. The world's two biggest economies agreed to a 90-day pause on tit-for-tat tariffs in May, and the US lowered the duty on many Chinese goods to 30 p er cent from 145 per cent . The US and China this week agreed to maintain that lower rate, potentially defusing a high-stakes trade dispute. Ocean shipping company Maersk in a customer advisory on June 12 said volumes from China to the US are rising following the May 12 tariff adjustment to 30 per cent. Port executives and shipping consultants also expect imports from China to rebound, albeit at a more moderate level as 30 per cent duties represent a significant cost increase for importers. Seroka said cargo for June appears to have returned to more normal levels with a dozen ships at the port on June 13 . 'It's one of the very few double-digit ship days we've had in weeks,' said Mr Seroka. Nevertheless, his outlook for the remainder of the year is muted because consumer demand is volatile and importers still face a 30 per cent cost increase on goods from China. 'I don't see the surge that some observers have called for.' Industry forecasts call for 2025 imports to drop from 2024 due to continued uncertainty over US tariffs, which also are subject to court battles. US consumer sentiment improved for the first time in six months in June as trade tensions between the US and China eased. But households remained worried about the economy as tariffs threaten to send prices even higher. Inventories are growing faster than sales at the most sensitive consumer discretionary companies , such as fitness apparel seller Lululemon, said Jefferies analysts in a client note on June 13 . Retailers are importing selectively to avoid having to discount excess stock. The full price hit from tariffs looms as US companies work through stockpiles built before the duties went into effect, said director of economics at Yale's Budget Lab Ernie Tedeschi . In January 2018, Trump's first administration put tariffs on washing machines. The effect did not show up in consumer price data until three months later, Mr Tedeschi said. 'It takes time for these tariffs to go through.' REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
AsiaOne
2 hours ago
- AsiaOne
White House reviews SpaceX contracts as Trump-Musk feud simmers, sources say, World News
WASHINGTON - The White House earlier this month directed the Defence Department and Nasa to gather details on billions of dollars in SpaceX contracts following the public blowout between President Donald Trump and billionaire Elon Musk, four people familiar with the order told Reuters. Sparking an ongoing review, the administration ordered the agencies to scrutinise Musk's contracts to ready possible retaliation against the businessman and his companies, these people said. As Reuters reported on Thursday (June 12), Pentagon officials are simultaneously considering whether to reduce the role that SpaceX, Musk's space and satellite company, may win in an ambitious new US missile defence system. Reuters couldn't determine whether the White House intends to cancel any of the approximately US$22 billion (S$28 billion) in federal contracts SpaceX now has. But the review shows the administration is following through on a threat by Trump during his spat with Musk last week to possibly terminate business and subsidies for Musk ventures. "We'll take a look at everything," the president said, speaking to reporters aboard Air Force One on June 6. In an email to Reuters, a White House spokesperson didn't answer questions about Musk's business, saying the "Trump administration is committed to a rigorous review process for all bids and contracts." In a separate statement, a spokesperson at Nasa said the agency "will continue to work with our industry partners to ensure the president's objectives in space are met." Neither SpaceX nor officials at the Defence Department responded to requests for comment. The people familiar with the order said the contract scrutiny is intended to give the administration the ability to move fast if Trump decides to act against Musk, who until recently was a senior advisor to the president and the head of the cost-cutting Department of Government Efficiency, or DOGE. The review is "for political ammunition," one of the people said. Whether the US government could legally, or practically, cancel existing contracts is unclear. But the possibility underscores concerns among governance experts that politics and personal pique could improperly influence matters affecting government coffers, national security and the public interest. "There's an irony here that Musk's contracts could be under the same type of subjective political scrutiny that he and his DOGE team have put on thousands of other contracts," said Scott Amey, a contracting expert and general counsel at the Project on Government Oversight, a watchdog group based in Washington. "Any decision shouldn't be based on the egos of two men but on the best interests of the public and national security." Musk's SpaceX in recent years has become a crucial partner of the US government in much of its aerospace and defence work - launching satellites and other space cargo and potentially managing a crucial element of the "Golden Dome" missile shield planned by Trump. Although Musk in recent days has sought to walk back some of his critiques of the president - such as calling for Trump's impeachment last week and linking him to a convicted sex offender - his outbursts nonetheless highlighted the government's reliance on SpaceX. Before reversing course, Musk threatened to decommission the company's Dragon spacecraft. The spacecraft, as part of a roughly US$5 billion contract with Nasa, is the only US vessel currently capable of carrying astronauts to and from the International Space Station. SpaceX is also building a network of hundreds of spy satellites under a classified contract with the National Reconnaissance Office, a US intelligence agency. The contract was a pivotal transaction for SpaceX, deepening its ties with US defence and intelligence services. [[nid:719028]]
Straits Times
4 hours ago
- Straits Times
Trump reports tens of millions in income from crypto ventures
Mr Donald Trump reported US$57.35 million (S$73 million) from token sales at crypto firm World Liberty Financial. PHOTO: REUTERS Trump reports tens of millions in income from crypto ventures President Donald Trump filed his first public financial disclosure report of his term on June 13, providing what he said was the latest information about his holdings, including income from his family's foray into cryptocurrencies. Mr Trump reported US$57.35 million (S$73 million) from token sales at crypto firm World Liberty Financial. He also reported holding $15.75 billion governance tokens in the venture. The annual report was signed as of June 13, but it was not immediately clear what time period it covered. The disclosure also showed the income from Mr Trump's properties in Florida. Mr Trump's three golf-focused resorts in the state - Jupiter, Doral and West Palm Beach – plus his nearby private members' club at Mar-A-Lago, generated at least $217.7 million in income, according to the filing. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
