Trump and Xi likely to speak soon on minerals trade dispute, Bessent says
WASHINGTON (Reuters) -- U.S. Treasury Secretary Bessent said he believes President Donald Trump and Chinese President Xi Jinping will speak soon to iron out trade issues including a dispute over critical minerals.
President Donald Trump on Friday accused China of violating an agreement with the U.S. to mutually roll back tariffs and trade restrictions for critical minerals.
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Japan Times
an hour ago
- Japan Times
Trade barriers and plane delivery delays challenge global airline growth
The head of a global airlines industry body said on Monday that growing trade barriers risked damaging the economy and the air travel sector, and "unacceptable" plane delivery delays were frustrating growth plans at a time of record passenger numbers. The International Air Transport Association (IATA) shaved a key forecast for 2025 industry-wide profits, blaming trade tensions and declining consumer confidence. "Like all forms of connectivity, flying makes the world more prosperous," IATA Director General Willie Walsh said at the group's annual meeting in New Delhi. "That stands in contrast to isolationism, trade barriers and the fragmentation of the multilateral rules-based system. These destroy wealth and lower living standards. For the times we live in, this is an important message," he said. Sweeping tariffs imposed by U.S. President Donald Trump have stoked fears of an economic slowdown and squeezed discretionary spending, prompting many consumers especially in the United States to delay or scale back travel plans. They also threaten a decades-old pact between more than 30 countries to eliminate duties on aircraft and their parts. While Walsh said there was no indication aircraft prices had increased due to tariffs, he said airlines would resist any attempt by aerospace manufacturers to raise prices and called for governments to "keep aerospace out of trade wars." IATA represents some 300 airlines accounting for more than 80% of global traffic. On environmental sustainability, Walsh said progress was not what it should be at this point in time. He criticized energy firms for not producing enough sustainable aviation fuel (SAF), which is made from waste oil and biomass and costs more than conventional jet fuel. IATA has increasingly been warning that airlines will struggle to meet their sustainability goals, but Walsh said the aviation industry was still aiming for net-zero emissions by 2050 based mainly on a gradual switch to SAF. More people are flying than ever before after a post-pandemic passenger market recovery, but airline growth is being hampered by extended plane delivery delays and supply chain bottlenecks driving up maintenance and repair time. Walsh called predictions of aircraft delivery delays throughout this decade "off-the-chart unacceptable." He said the airline industry was evaluating legal options over the delays, but it preferred to work with manufacturers collaboratively. "The manufacturing sector is failing badly," he said. IATA said the number of deliveries scheduled for 2025 was 26% less than what was promised a year ago, although at 1,692 this would be the highest number of new planes since 2018. "Further downward revisions are likely, given that supply chain issues are expected to persist in 2025 and possibly to the end of the decade," IATA said in the update to its industry outlook. Tim Clark, president of the world's largest international airline, Dubai's Emirates, said on Sunday that the pandemic was no longer an acceptable excuse for delivery delays and challenged planemakers to take responsibility. Similar frustration was voiced by Saudi budget carrier flyadeal. "Delays are becoming inexcusable. Transparency, to be frank, is lacking, and we're getting agitated. How else can we plan? I mean it is just going beyond a joke now," flyadeal CEO Steven Greenway said. U.S. planemaker Boeing is trying to stabilize and ramp up production after a quality crisis and a labor strike slowed output last year. Last week, sources said that Europe's Airbus has been warning airlines it faces another three years of delivery delays. Despite the challenges, carriers are still looking to purchase more planes to ensure they can meet future travel demand. Tata Group's Air India is in talks with Airbus and Boeing for a major new aircraft order including some 200 extra single-aisle planes, topping up a mammoth deal in 2023 as the former state carrier pursues a multi-billion-dollar revamp, it was reported on Sunday.
The Mainichi
an hour ago
- The Mainichi
Tokyo stocks mixed on Wall Street gains, higher interest rates
TOKYO (Kyodo) -- Tokyo stocks were mixed Tuesday morning as buying was supported by overnight gains on Wall Street, but the market was weighed down by a rise in Japanese long-term interest rates. The 225-issue Nikkei Stock Average rose 76.18 points, or 0.20 percent, from Monday to 37,546.85. The broader Topix index was down 3.31 points, or 0.12 percent, at 2,773.98. The U.S. dollar climbed to the lower 143 yen range, as the yen was sold on speculation that the Bank of Japan will be cautious about additional interest rate hikes after its chief Kazuo Ueda said the central bank will not raise rates unless the economic and price situations are expected to improve. At noon, the dollar fetched 143.11-12 yen compared with 142.65-75 yen in New York and 142.90-91 yen in Tokyo at 5 p.m. Monday. The euro was quoted at $1.1424-1426 and 163.49-53 yen against $1.1437-1447 and 163.31-41 yen in New York and $1.1423-1425 and 163.24-28 yen in Tokyo late Monday afternoon. The Nikkei stock index climbed after U.S. shares advanced on hopes of easing trade tensions between the United States and China after the White House said President Donald Trump is likely to speak with Chinese leader Xi Jinping this week. However, gains were capped as the yield on the benchmark 10-year Japanese government bond rose, fueling concerns about higher borrowing costs.
Japan Times
2 hours ago
- Japan Times
BOJ likely to stop cutting bond purchases in next fiscal year, ex-official says
The Bank of Japan will probably decide to stop reducing the amount of its government bond purchases in a plan for next fiscal year when authorities gather this month, as they eye a worrisome surge in JGB yields, according to a former BOJ board member. Since last summer, the bank has been reducing its buying of government bonds by ¥400 billion ($2.8 billion) every quarter, but that process will come to a halt, former board member Makoto Sakurai said in an interview Monday in Tokyo. "They are likely to make a stop,' Sakurai said. "They must be considering that yields will rise further if they go big on cutting bond purchases.' Sakurai was speaking two weeks before the BOJ extends its current bond purchase plan into the fiscal year from April. Traders have been looking for hints regarding the likely pace of pullback, with BOJ watchers holding mixed views on what the optimum rate should be. A recent surge in superlong bond yields reflects the challenges for authorities pursuing a quantitative tightening path. "It's probably the most reasonable solution to halt for now and then mull it over later,' Sakurai said. "It's a little risky to make a long-term commitment' when uncertainties are this high, he added. Owing largely to U.S. President Donald Trump's tariff measures, the murky economic landscape is likely to keep Gov. Kazuo Ueda's board on hold, with the policy rate at 0.5%, until toward the end of this year, Sakurai said. Prior to any move higher, the central bank would need to confirm the resilience in business investment as well as how much room companies have to raise wages next year. That data won't be available until autumn, he said. Sakurai's forecast is more or less in line with the market's. Traders see around a 70% chance of borrowing costs rising by the end of this year, according to overnight index swaps Monday. "October seems a bit too early, but I wouldn't rule it out,' Sakurai said. "It all depends on the data.' The BOJ's nine-member board next sets policy on June 17. A key focus will be on whether the central bank will continue to reduce the amount of government debt buying every three months from the second quarter of next year. At the current pace of cutbacks, monthly bond buying would slide to around ¥2.9 trillion by March. At the BOJ's hearings with bond market participants last month, there were diverse views on the right tempo to cut back debt buying in the future. One participant called for more aggressive cuts to purchases, while another urged that reductions be suspended temporarily, according to minutes of the gatherings released Monday. The nation's 30-year yield has come down to around 2.95% from the 3.185% touched late last month, its highest since the tenor's inception. Still, Japan's bond market faces more challenges with debt sales later Tuesday and Thursday that may ramp up pressure on the government to adjust its borrowing plans and calm investor nerves. Sakurai expects Japan's yields to stay elevated, causing concerns at the Finance Ministry over its implications for Japan's finances. The government's cost for debt servicing has risen to about a quarter of its budget for this fiscal year, thanks partly to higher interest rates. "They must be feeling that a higher yield could be problematic,' Sakurai said. "It's not easy to proceed with further cutbacks in bond purchases for the BOJ.' The BOJ remains the biggest holder of Japanese government debt, owning roughly half of the market after more than a decade of aggressive monetary easing. The bank began quantitative tightening last summer, five months after scrapping its negative interest rate and yield curve control program.
