When the US bond market has the power to intimidate
Rising bond yields demand to be noticed because they have a range of negative consequences. PHOTO: BLOOMBERG
Financial crises come and go – and then come right back again. But they never seem to entirely go away. That has been the pattern of this Trump administration.
Staying calm and taking a long view is what you are supposed to do in investing.
Join ST's Telegram channel and get the latest breaking news delivered to you.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
34 minutes ago
- Straits Times
Myanmar junta says UN labour resolution ‘politically motivated'
Myanmar has hit back at a UN resolution aimed at curbing labour violations in the war-torn nation. PHOTO: AFP BANGKOK - Myanmar's ruling military on June 7 hit back at a UN resolution aimed at curbing labour violations in the war-torn nation, calling it 'politically motivated'. The International Labour Organisation (ILO) on June 5 invoked Article 33 of its Constitution, which could see sanctions imposed against the military authorities which seized power in a 2021 coup. The United Nations' labour agency said countries should ensure their relations with Myanmar 'in no way enable, facilitate or prolong the violations of workers' rights in respect of freedom of association and forced labour.' It called on international bodies to 'report any activities... directly or indirectly enabling or abetting' labour violations under Myanmar's junta government. On June 7, Myanmar's labour ministry released a statement saying the resolution had been adopted 'without due partiality and fairness' and was based on 'politically motivated approaches'. A UN investigation into Myanmar in October 2023 urged the country's military rulers to end forced labour in the army and to halt all violence against trade unionists. It found far-reaching violations of international forced labour and freedom of association conventions in the South-east Asian nation. The resolution adopted on June 5 at the ILO's 113th International Labour Conference in Geneva said Myanmar's military authorities had not indicated 'any sign of meaningful acknowledgement' of the 2023 report's recommendations. Myanmar said it had been 'actively implementing' the recommendations and had made 'continuous progress' and accused the ILO of 'turning a blind eye' to its efforts. The International Trade Union Confederation – Asia Pacific said it was the third time in the ILO's century-long history that Article 33 has been invoked. Myanmar has been in turmoil since the military ousted the democratically-elected civilian leader Aung San Suu Kyi in a February 2021 coup. AFP Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
an hour ago
- Straits Times
S'pore embassy in Washington seeking US clarification on Harvard's visa ban
SINGAPORE - Singapore's embassy in Washington has been seeking clarification from the US State Department and Department of Homeland Security on President Donald Trump's directive prohibiting foreigners from entering the country to study at Harvard University. The embassy is hoping for clarity from US authorities in the next few days, including on whether there will be any delay in the processing of visas for Singaporeans hoping to study in the US, Foreign Minister Vivian Balakrishnan said on June 7. In a zoom call with Singapore media to wrap up his five-day visit to Washington, he noted that many current and prospective students looking to study in the United States had expressed their concern to the Ministry of Foreign Affairs over potential visa delays. Asked to elaborate on contingencies being planned should Singaporean students find themselves unable to proceeds with their plans to study in the US, he said the Government is trying to find solutions to deal with the worst case scenario where students are not able to physically study in Boston. 'We've got some ideas for how we can help them to, in a sense, deal with that eventuality without impairing their academic and professional progress,' said Dr Balakrishnan. 'For others who are not yet here, who have not yet secured visas, you may also need to have backup plans, but my main point is we will stay in touch, and we will continue to keep you informed.' Dr Balakrishnan noted that Singapore's ambassador to the US Lui Tuck Yew has also held a virtual town hall with students currently studying in Harvard. In the virtual town hall on May 30, Mr Lui told Singaporean students at Harvard that the Republic's autonomous universities can offer them placements if they wish to discontinue their studies in the US and return home. A Ministry of Education spokesperson said this message was shared with affected students so they could consider returning to Singapore as a possible option to continue their studies. There are six autonomous universities here: National University of Singapore, Nanyang Technological University, Singapore Management University, Singapore University of Social Sciences, Singapore University of Technology and Design and Singapore Institute of Technology. University statistics show that there are currently 151 Singaporean students in Harvard. Among them are 12 Public Service Commission scholarship holders. Foreign students at Harvard were thrown into limbo after Mr Trump's administration announced on May 22 that it had revoked Harvard's Student and Exchange Visitor Programme certification with immediate effect. The nearly 6,800 international students in the Ivy League college were given an ultimatum to either transfer to another institution, or face deportation. A federal judge later blocked the move, with the Trump administration rolling back its stance on May 29 and giving Harvard 30 days to submit evidence contesting the administration's plan to revoke the school's right to enrol international students. International students make up more than a quarter of Harvard's student body, but Mr Trump said the university should cap its international intake at 15 per cent. Dr Balakrishnan said the situation confronting international students stems from domestic political issues within the US. But students, including from Singapore, can become affected as collateral damage, and there will be a period of uncertainty of at least a few days or weeks. 'Nevertheless, we will continue to pursue this with the American authorities, and I hope we'll be able to find suitable solutions for our students who want to pursue educational opportunities in the United States.' At a macro level, it remains in both Singapore and the US' interests to keep opportunities open for Singaporeans who want to study and work in the US to expand their domain experience and their networks, he added. 'So this is an issue that we will continue to pursue with the State Department.' Join ST's WhatsApp Channel and get the latest news and must-reads.
Straits Times
an hour ago
- Straits Times
Trump has options to punish Musk even if his federal contracts continue
The relationship between US President Donald Trump and Mr Elon Musk exploded into warfare on June 5. PHOTO: HAIYUN JIANG/NYTIMES WASHINGTON - After the relationship between President Donald Trump and Mr Elon Musk exploded into warfare on June 5, Mr Trump suggested that he might eliminate the tech titan's federal contracts. 'The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's Governmental Subsidies and Contracts. I was always surprised that Biden didn't do it,' Mr Trump posted on his social media platform. That's not as easy as Mr Trump implies. The Pentagon and Nasa remain intensely reliant on SpaceX, Mr Musk's rocket launch and space-based communications company, to get to orbit and move government data across the world. But there are options available to the president that could make Mr Musk's relationship with the federal government much more difficult than it has been so far in Mr Trump's second administration. Mr Trump's most accessible weapon to punish Mr Musk is the ability to instruct federal regulators to intensify oversight of his business operations, reversing a slowdown in regulatory actions that benefited Mr Musk's businesses after Mr Trump was elected. 'In an administration that has defined itself by reducing regulation and oversight, it would not be difficult to selectively ramp up oversight again,' said Mr Steven Schooner, a former White House contracts lawyer who is now a professor at George Washington University. With a decree, Mr Trump could suspend Mr Musk's security clearance, a step that the Trump administration has also taken against some of its Biden-era critics. That move would make it harder for Mr Musk to continue in his role as CEO of SpaceX, given its billions of dollars in Pentagon contracts. Pentagon investigators had been examining whether Mr Musk has violated federal security clearance requirements for disclosing contacts with foreign government leaders, The New York Times reported in 2024. The Trump administration could also slow down new contracts going to SpaceX in the years to come, perhaps by looking for ways to drive more work to its rivals, such as Mr Jeff Bezos' Blue Origin or the Boeing and Lockheed partnership called United Launch Alliance. But billions of dollars in financial commitments have been made to SpaceX for launches that will be spread out over the rest of Mr Trump's term to deliver astronauts and cargo to the International Space Station and even the moon, as well as to send military and spy satellites into orbit. Moreover, the services SpaceX provides are vital to some of Mr Trump's top agenda items, such as building a new space-based missile defence programme that the Pentagon is calling Golden Dome. That programme will require dozens of launches to orbit as well as space-based observation and data transmission systems to track and help intercept missile threats. SpaceX is by far the dominant global player in these launches. While Blue Origin and other companies like Rocket Lab and Relativity Space are building or have recently built their own new rockets, none has the kind of launch record and reliability that SpaceX's Falcon 9 rocket has. Overall, the federal government has awarded nearly US$18 billion (S$23 billion) in contracts to SpaceX over the past decade, including US$3.8 billion just in the 2024 fiscal year, according to a tally by the Times. That makes SpaceX one of the largest federal contractors, with most of that money coming from Nasa and the Pentagon. Terminating SpaceX's contracts 'would end the US capability to launch astronauts to orbit for the foreseeable future,' said Ms Laura Seward Forczyk, founder of the space consulting firm Astralytical. It would also significantly delay the US effort to return humans to the moon, she said. Ms Bethany Stevens, Nasa's press secretary, hinted on Mr Musk's X social platform late on June 5 afternoon – as the verbal war between Mr Musk and Mr Trump continued to play out – that the deals with SpaceX are in fact not going to be cancelled anytime soon. 'Nasa will continue to execute upon the President's vision for the future of space,' Ms Stevens said, without mentioning Musk or SpaceX by name. 'We will continue to work with our industry partners to ensure the President's objectives in space are met.' But Mr Trump has more flexibility when it comes to the alphabet soup of federal agencies that regulate SpaceX as well as Tesla, Mr Musk's car company; X; the Boring Co., his underground drilling outfit; and Neuralink, his computer chip brain implant startup. The federal government, by most historical and ethical norms, is not supposed to be used as a retaliatory machine to punish political enemies. And that practice by Mr Trump would be abnormal and inappropriate, Schooner said. But the Trump administration, including the Justice Department, has shown itself willing to take up investigations that target Mr Trump's enemies or organisations that he dislikes, like Harvard University or even his former aides who have become critics, like Mr Chris Krebs, his former top cybersecurity official. Before Mr Trump was elected, at least 11 federal agencies had ongoing investigations or lawsuits targeting Mr Musk's companies. These included the Federal Aviation Administration's scrutiny of launch safety issues, the Environmental Protection Agency's inquiry into potential water pollution at SpaceX's Texas launch site and transportation regulators' questions about fatal accidents involving Tesla cars using autopilot. Several of those inquiries were put on hold. In other instances, fines that Mr Musk's companies had been assessed were being reconsidered, including one that the FAA announced in September for what it said were safety violations during launches in Florida. Mr Trump's top transportation official vowed at his confirmation hearing to 'review' that fine. As of last week, it had still not been paid, an agency official said. The Fish and Wildlife Service also has slowed down its oversight of SpaceX's Texas launch site, where the company for years has been accused of damaging adjacent state park and National Wildlife Refuge lands. That enforcement effort could be turned back on almost overnight if Mr Trump ordered it. But no other US company can currently do what Nasa needs. Boeing, the other company Nasa hired to take astronauts to orbit, has yet to complete fixes for its Starliner capsule after a test mission left two Nasa astronauts, Suni Williams and Butch Wilmore, in orbit for nine months before they finally returned to Earth in a SpaceX Crew Dragon. Aerospace company Northrop Grumman also has a contract to take cargo to the space station with its Cygnus spacecraft, but the most recent Cygnus had to be scrapped after it was damaged during shipment to Florida for launch. Mr Musk appears to recognise this leverage he has over Nasa. He initially threatened on June 5, as the war of words with Mr Trump played out, to stop future flights to deliver astronauts to the space station, but he appeared to walk back that threat later in the day. NYTIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
