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Yahoo
11-08-2025
- Business
- Yahoo
Trump Urges China to Quadruple US Soy Buying, Lifting Prices
(Bloomberg) -- US President Donald Trump said he hopes China will massively step up its purchases of American soybeans — comments that come a day before a trade truce expires. Sunseeking Germans Face Swiss Backlash Over Alpine Holiday Congestion New York Warns of $34 Billion Budget Hole, Biggest Since 2009 Crisis Three Deaths Reported as NYC Legionnaires' Outbreak Spreads A New Stage for the Theater That Gave America Shakespeare in the Park Chicago Schools' Bond Penalty Widens as $734 Million Gap Looms 'China is worried about its shortage of soybeans,' Trump wrote on the Truth Social website on Monday. 'I hope China will quickly quadruple its soybean orders. This is also a way of substantially reducing China's Trade Deficit with the USA.' Trump also thanked Chinese leader Xi Jinping in the post, without saying why. The president's push is happening as US farmers are just weeks from their next harvest, boosting supplies available to sell. China is the world's top buyer of the oilseed and usually ranks as the biggest customer of American soy farmers, a trade valued at more than $12 billion in 2024. However, US government data as of late July show the Asian nation has refrained from booking any cargoes for the upcoming season that starts in September as tensions between the two sides linger. Chicago soybean futures jumped as much as 2.8% after Trump's post, the biggest intraday gain in four months. Corn and wheat also traded higher. Agriculture has been a key issue in the trade dispute between the two sides, with China turning to crops from South America and elsewhere to meet its needs. China agreed to increase buying of US agricultural goods like soybeans during the so-called phase one trade agreement reached during Trump's first term, although Beijing ultimately fell well short of the purchase targets in that pact. Trump's remarks spurred fresh optimism that bilateral trade between China and the US could soon revive, with assets like Chinese equities also rising. US soybeans have also gotten cheaper than Brazilian shipments as the influx of fresh supply nears. Beijing faces an Aug. 12 deadline before its tariff truce with the US expires, though the Trump administration has signaled that is likely to be extended. China has long fretted about its supplies of soybeans, which are a key element of the nation's diet and livestock feed. The country has stepped up purchases of soybeans from its top supplier Brazil in recent months, and is also testing trial cargoes of soybean meal from Argentina, to secure supplies of the animal feed ingredient. 'The move to buy Argentina soybean meal is just a temporary fix,' said Hanver Li, chief analyst with China-based commodity consultancy Shanghai JC Intelligence Co. 'If the China-US talks go well, it wouldn't be a long term trade pattern.' This is typically the time of year when China's purchases begin shifting to the Northern Hemisphere. Analysts surveyed by Bloomberg expect the US Department of Agriculture to boost its outlook for the domestic harvest in a report due Tuesday. Still, there is little sign that China is concerned about a soybean shortage, despite Trump's comments, said Vitor Pistoia, senior grains and oilseeds analyst at Rabobank. If trade relations don't improve, the nation would be able to source its annual supply entirely from South America if necessary, bypassing the US, he said. 'When you add what Brazil has, what Argentina has,' with what Uruguay and Paraguay have, 'all those guys have enough to supply China,' he said in an interview. While China and the US have been trying to work out a trade deal, other issues have been complicating their relationship. Last week, China defended its imports of Russian oil, pushing back against US threats of new tariffs after Washington slapped secondary levies on India for buying energy from Moscow. And on Sunday, a social media account affiliated with state-run China Central Television that regularly signals Beijing's thinking about trade slammed an Nvidia Corp. chip's supposed security vulnerabilities and inefficiency. In July, the Trump administration reversed course to allow Nvidia to sell the H20 AI accelerator to China. (Updates with soybean futures, comments and more context) The Game Starts at 8. The Robbery Starts at 8:01 The Pizza Oven Startup With a Plan to Own Every Piece of the Pie Digital Nomads Are Transforming Medellín's Housing It's Only a Matter of Time Until Americans Pay for Trump's Tariffs Russia's Secret War and the Plot to Kill a German CEO ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-08-2025
- Business
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Everything's Expensive. There's Nowhere to Hide: Credit Weekly
(Bloomberg) -- Credit market bargain shoppers are having the hardest time finding deals in at least a generation. New York Warns of $34 Billion Budget Hole, Biggest Since 2009 Crisis Three Deaths Reported as NYC Legionnaires' Outbreak Spreads All Hail the Humble Speed Hump A New Stage for the Theater That Gave America Shakespeare in the Park Chicago Schools' Bond Penalty Widens as $734 Million Gap Looms A relentless rally has left valuations stretched on just about all high-grade company debt globally. The difference between spreads on individual bonds and the average of the index is the lowest on record, according to data compiled by Bloomberg going back to 2009. Risk premiums are low for top-notch and weaker companies alike. In junk bonds the spread variability, or dispersion, is at its lowest since right before the onset of the Covid-19 pandemic. Investors looking to juice their returns now typically have to take on a lot more risk for not much extra yield. When a client asked Insight Investment's April LaRusse for ways to boost spreads without materially amplifying potential losses in recent weeks, she didn't have an immediate answer. 'It's certainly not easy to find ways to get more yield without introducing different risk,' said the head of investment specialists in an interview. 'It's pretty tricky. When you get tight spreads, you get a lot less dispersion.' The growth of both credit index and fixed-maturity funds probably plays a role here: investors are increasingly just buying most of the market, flattening out the differences in bonds' yields. The lack of variability makes it difficult to find bargains. Massive inflows have swamped corporate bond funds recently as investors chase securities offering higher yields than Treasuries, even if spreads are relatively tight. Insurance companies have also been packaging company debt into annuities to sell to the growing number of US retirees. Meanwhile, the average risk premium for global high-grade bonds stood at 82 basis points on Thursday, close to its tightest level since before the global financial crisis, data compiled by Bloomberg show. It's not much different in the junk-rated market, where spreads are roughly a quarter of a percentage point away from the post-crisis lows set in February. There are reasons for investors to be cautious about amping up risk to boost returns. Job growth in the US cooled sharply in the past three months. And concerns about deteriorating economic activity in the US are starting to take over tariff-induced inflation as the biggest peril in the market, according to the latest purchasing managers index surveys. 'It's proving a challenging market,' said Andrew Chorlton, chief investment officer of fixed income at M&G Investments. 'There's just quite a lot of complacency in credit at the moment.' While the firm still has significant exposure to corporate debt, its portfolio managers have increased positions in more defensive assets: cash, government bonds, covered bonds and AAA securitized paper, Chorlton said. Those categories should do better than 'blindly continuing into the corporate bond market assuming that things will be this good forever,' he added. Finding cheap high-yield bonds is also a challenge. Winnowing out differentiated yield without dipping down into distressed debt or deeply junk-rated debt that's not trading at wide enough levels has been a key concern for Al Cattermole, fixed income portfolio manager at Mirabaud Asset Management. 'I don't want to add CCCs that are trading like Bs,' Cattermole said, referring to different rating bands in the junk bond market. 'That's the conundrum for us at the moment.' Week In Review President Donald Trump signed an executive order easing access to private credit, real estate, cryptocurrency and other alternative assets in 401(k)s, a major victory for industries looking to tap some of the roughly $12.5 trillion held in those retirement accounts. Meta Platforms Inc. selected Pacific Investment Management Co. and Blue Owl Capital Inc. to lead a $29 billion financing for its data center expansion in rural Louisiana as the race for artificial intelligence infrastructure heats up. Pimco is expected to lead a $26 billion debt portion of the deal. Distressed Hong Kong developer New World Development Co. said that Blackstone Inc. has not made an offer for its shares, following a media report on potential financing that triggered the biggest equity rally in several months. Issuers piled into the investment-grade market, with weekly volume above $40 billion, the most in three months and well above dealers' forecasts of $25 billion to $30 billion. Marc Rowan, Chief Executive Officer of Apollo Global Management Inc., said trading private assets has the potential to turn the industry 'on its head' and said those who resist it are generally charging high fees that they don't want revealed. A Blackstone Inc. fund further cut the value of a private credit loan for Thoma Bravo-backed software company Medallia Inc., revealing growing stress for its single largest investment. The White House fired five of the seven board members of the federal watchdog that oversees Puerto Rico's finances, inserting itself in the island's high-stakes debt and contract negotiations. Carlyle Group Inc. pulled off a string of exits in the second quarter, selling $3.7 billion of investments from traditional private equity-style funds — a 12-fold increase from the same period a year earlier. Its buyout rivals have recently struggled to sell out of bets profitably. Apollo Global Management Inc. is increasing a landmark loan it made to SoftBank Group to $5.4 billion, a new record for a booming type of debt that's becoming a must have for private capital funds and their backers. JPMorgan Chase is making preliminary inquiries with investors to gauge appetite for a significant risk transfer tied to a portfolio of loans used to purchase artwork. On the Move KKR has hired Ken Murata as a managing director for its credit business in Japan as the country becomes a key market for the private credit boom in Asia. Murata joined from Goldman Sachs, where he was managing director and head of Strategic Solutions and Financing Group in its investment banking division. He will start in September. Citigroup is hiring Aashish Dhakad from Ares Management to become head of private credit origination for North America. He will lead the lender's effort to source debt deals beyond the scope of its existing tie-up with Apollo Global Management. Blackstone hired Goldman Sachs's Mao Ito, its first hire to focus on private credit origination in Japan, joining rivals including KKR to tap a fast-growing market for the global $1.7 trillion industry. HSBC appointed Jake Hartmann as managing director and head of its US debt capital markets desk for financial institutions. He joins from Barclays, where he held a similar role focusing on US regional banks and insurance. Annika Kim is joining the Texas Municipal Retirement System as the fund's new credit director. The former private equity employee at Apollo Global Management is one of a number of new hires at TMRS. Ares Management alumnus Scott Graves has added two partners at Lane42, his new alternative investment firm. David Farber is coming in from Banco Santander, where he was head of leveraged finance. Victoria Aparece, a former managing director at Centerbridge Partners, will also join the upstart shop. Monroe Capital hired Todd Davis as director for loan originations. Davis previously worked at Antares Capital. --With assistance from Dan Wilchins. The Pizza Oven Startup With a Plan to Own Every Piece of the Pie Digital Nomads Are Transforming Medellín's Housing Russia's Secret War and the Plot to Kill a German CEO It's Only a Matter of Time Until Americans Pay for Trump's Tariffs The Game Starts at 8. The Robbery Starts at 8:01 ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-08-2025
- Business
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Everything's Expensive. There's Nowhere to Hide: Credit Weekly
(Bloomberg) -- Credit market bargain shoppers are having the hardest time finding deals in at least a generation. New York Warns of $34 Billion Budget Hole, Biggest Since 2009 Crisis Three Deaths Reported as NYC Legionnaires' Outbreak Spreads All Hail the Humble Speed Hump A New Stage for the Theater That Gave America Shakespeare in the Park Chicago Schools' Bond Penalty Widens as $734 Million Gap Looms A relentless rally has left valuations stretched on just about all high-grade company debt globally. The difference between spreads on individual bonds and the average of the index is the lowest on record, according to data compiled by Bloomberg going back to 2009. Risk premiums are low for top-notch and weaker companies alike. In junk bonds the spread variability, or dispersion, is at its lowest since right before the onset of the Covid-19 pandemic. Investors looking to juice their returns now typically have to take on a lot more risk for not much extra yield. When a client asked Insight Investment's April LaRusse for ways to boost spreads without materially amplifying potential losses in recent weeks, she didn't have an immediate answer. 'It's certainly not easy to find ways to get more yield without introducing different risk,' said the head of investment specialists in an interview. 'It's pretty tricky. When you get tight spreads, you get a lot less dispersion.' The growth of both credit index and fixed-maturity funds probably plays a role here: investors are increasingly just buying most of the market, flattening out the differences in bonds' yields. The lack of variability makes it difficult to find bargains. Massive inflows have swamped corporate bond funds recently as investors chase securities offering higher yields than Treasuries, even if spreads are relatively tight. Insurance companies have also been packaging company debt into annuities to sell to the growing number of US retirees. Meanwhile, the average risk premium for global high-grade bonds stood at 82 basis points on Thursday, close to its tightest level since before the global financial crisis, data compiled by Bloomberg show. It's not much different in the junk-rated market, where spreads are roughly a quarter of a percentage point away from the post-crisis lows set in February. There are reasons for investors to be cautious about amping up risk to boost returns. Job growth in the US cooled sharply in the past three months. And concerns about deteriorating economic activity in the US are starting to take over tariff-induced inflation as the biggest peril in the market, according to the latest purchasing managers index surveys. 'It's proving a challenging market,' said Andrew Chorlton, chief investment officer of fixed income at M&G Investments. 'There's just quite a lot of complacency in credit at the moment.' While the firm still has significant exposure to corporate debt, its portfolio managers have increased positions in more defensive assets: cash, government bonds, covered bonds and AAA securitized paper, Chorlton said. Those categories should do better than 'blindly continuing into the corporate bond market assuming that things will be this good forever,' he added. Finding cheap high-yield bonds is also a challenge. Winnowing out differentiated yield without dipping down into distressed debt or deeply junk-rated debt that's not trading at wide enough levels has been a key concern for Al Cattermole, fixed income portfolio manager at Mirabaud Asset Management. 'I don't want to add CCCs that are trading like Bs,' Cattermole said, referring to different rating bands in the junk bond market. 'That's the conundrum for us at the moment.' Week In Review President Donald Trump signed an executive order easing access to private credit, real estate, cryptocurrency and other alternative assets in 401(k)s, a major victory for industries looking to tap some of the roughly $12.5 trillion held in those retirement accounts. Meta Platforms Inc. selected Pacific Investment Management Co. and Blue Owl Capital Inc. to lead a $29 billion financing for its data center expansion in rural Louisiana as the race for artificial intelligence infrastructure heats up. Pimco is expected to lead a $26 billion debt portion of the deal. Distressed Hong Kong developer New World Development Co. said that Blackstone Inc. has not made an offer for its shares, following a media report on potential financing that triggered the biggest equity rally in several months. Issuers piled into the investment-grade market, with weekly volume above $40 billion, the most in three months and well above dealers' forecasts of $25 billion to $30 billion. Marc Rowan, Chief Executive Officer of Apollo Global Management Inc., said trading private assets has the potential to turn the industry 'on its head' and said those who resist it are generally charging high fees that they don't want revealed. A Blackstone Inc. fund further cut the value of a private credit loan for Thoma Bravo-backed software company Medallia Inc., revealing growing stress for its single largest investment. The White House fired five of the seven board members of the federal watchdog that oversees Puerto Rico's finances, inserting itself in the island's high-stakes debt and contract negotiations. Carlyle Group Inc. pulled off a string of exits in the second quarter, selling $3.7 billion of investments from traditional private equity-style funds — a 12-fold increase from the same period a year earlier. Its buyout rivals have recently struggled to sell out of bets profitably. Apollo Global Management Inc. is increasing a landmark loan it made to SoftBank Group to $5.4 billion, a new record for a booming type of debt that's becoming a must have for private capital funds and their backers. JPMorgan Chase is making preliminary inquiries with investors to gauge appetite for a significant risk transfer tied to a portfolio of loans used to purchase artwork. On the Move KKR has hired Ken Murata as a managing director for its credit business in Japan as the country becomes a key market for the private credit boom in Asia. Murata joined from Goldman Sachs, where he was managing director and head of Strategic Solutions and Financing Group in its investment banking division. He will start in September. Citigroup is hiring Aashish Dhakad from Ares Management to become head of private credit origination for North America. He will lead the lender's effort to source debt deals beyond the scope of its existing tie-up with Apollo Global Management. Blackstone hired Goldman Sachs's Mao Ito, its first hire to focus on private credit origination in Japan, joining rivals including KKR to tap a fast-growing market for the global $1.7 trillion industry. HSBC appointed Jake Hartmann as managing director and head of its US debt capital markets desk for financial institutions. He joins from Barclays, where he held a similar role focusing on US regional banks and insurance. Annika Kim is joining the Texas Municipal Retirement System as the fund's new credit director. The former private equity employee at Apollo Global Management is one of a number of new hires at TMRS. Ares Management alumnus Scott Graves has added two partners at Lane42, his new alternative investment firm. David Farber is coming in from Banco Santander, where he was head of leveraged finance. Victoria Aparece, a former managing director at Centerbridge Partners, will also join the upstart shop. Monroe Capital hired Todd Davis as director for loan originations. Davis previously worked at Antares Capital. --With assistance from Dan Wilchins. The Pizza Oven Startup With a Plan to Own Every Piece of the Pie Digital Nomads Are Transforming Medellín's Housing Russia's Secret War and the Plot to Kill a German CEO It's Only a Matter of Time Until Americans Pay for Trump's Tariffs The Game Starts at 8. The Robbery Starts at 8:01 ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-08-2025
- Politics
- Yahoo
Trump to Lay Out His Plan for Reducing Crime in Nation's Capital
(Bloomberg) -- President Donald Trump said he will lay out his administration's plan to reduce crime in the nation's capital, even as violent incidents in the District of Columbia are at a 30-year low. New York Warns of $34 Billion Budget Hole, Biggest Since 2009 Crisis All Hail the Humble Speed Hump Three Deaths Reported as NYC Legionnaires' Outbreak Spreads A New Stage for the Theater That Gave America Shakespeare in the Park Chicago Schools' Bond Penalty Widens as $734 Million Gap Looms Trump said in a social media post that he will have a news conference on Monday that 'will, essentially, stop violent crime in Washington, DC.' Trump on Thursday directed an increased presence of federal law enforcement around Washington, DC, a day after threatening the federal government could seize control of it. That move came a day after a former member of his so-called Department of Government Efficiency was injured during an attempted carjacking in DC. The city, which has voted overwhelmingly for Democrats for decades, has also been seeking to end all federal control of the city, a movement known as 'home rule.' Violence has been dropping in the District for two years, according to local police data. As of Jan. 3, violent crime in DC in 2024 was at a 30-year low, according to the US Justice Department. Trump's powers to 'take over' the capital city are limited. Partial home rule was established by Congress in 1973, which allows residents to elect their own mayor, who appoints the police chief. Residents also elect a District council that can pass local laws. But those laws can be overturned by Congress, which approves the city's budget. Trump can't override the home rule law without Congress, but he can assign federal agents to conduct law enforcement operations inside the city and has done so before, acting independently of the Metropolitan Police Department. He has also said that he is considering deploying the National Guard in the city. The president has often, without evidence, cast cities around the country as crime-ridden, and has increased those complaints about DC since the former staffer was attacked. Trump said on his Truth Social platform earlier this week that he wants to 'federalize' the city if local officials don't do more to address crime. Trump has issued executive orders this year that created a panel to coordinate efforts to improve safety and address graffiti and vandalism in the city, along with one that ordered a crackdown on homeless encampments on federal lands. --With assistance from Chris Strohm. The Pizza Oven Startup With a Plan to Own Every Piece of the Pie Digital Nomads Are Transforming Medellín's Housing Russia's Secret War and the Plot to Kill a German CEO It's Only a Matter of Time Until Americans Pay for Trump's Tariffs The Game Starts at 8. The Robbery Starts at 8:01 ©2025 Bloomberg L.P.
Yahoo
09-08-2025
- Business
- Yahoo
Charting the Global Economy: A Split Bank of England Cuts Rates
(Bloomberg) -- The Bank of England reduced interest rates to a more than two-year low in a closer-than-expected decision that leaves investors with what Governor Andrew Bailey called 'genuine uncertainty' on its next move. All Hail the Humble Speed Hump Three Deaths Reported as NYC Legionnaires' Outbreak Spreads Mayor Asked to Explain $1.4 Billion of Wasted Johannesburg Funds New York Warns of $34 Billion Budget Hole, Biggest Since 2009 Crisis Chicago Schools' Bond Penalty Widens as $734 Million Gap Looms In the US, the services sector effectively stagnated last month as sluggish demand and higher input costs prompted companies to reduce employment — the latest evidence of a slowing economy. Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy, markets and geopolitics: Europe In a judgment that pitted the prospect of inflation hitting 4% against a weakening jobs market, five members of the Bank of England's Monetary Policy Committee split 5-to-4 in favor of reducing rates by a quarter-point to 4% after deadlock forced it into an unprecedented second vote. The prospect of another reduction this year is now shrouded in doubt. It was the first time in the panel's 28-year history that two rounds of voting were needed for a presentable outcome on rates. German industrial production suffered its biggest drop in almost a year, raising the prospect that Europe's largest economy shrank last quarter by even more than initially estimated. US President Donald Trump declared plans for a 100% tariff on semiconductor imports while promising to exempt companies such as Apple Inc. that move production back to the US, triggering a scramble among trading partners and companies worldwide to make sense of the threat. The US services sector effectively stagnated in July as firms — faced with tepid demand and rising costs — reduced headcount. The Institute for Supply Management's index of services declined last month to 50.1, below all estimates in a Bloomberg survey of economists. Readings above 50 indicate expansion. The share of consumer debt in serious delinquency rose in the second quarter to the highest level since early 2020, reflecting a record surge in past-due student-loan debt. In a briefing with reporters, New York Fed researchers said student-loan delinquencies would likely continue to rise, eventually returning to pre-pandemic levels. Asia China's export growth unexpectedly accelerated last month in the fastest gain since April, as demand from around the world compensated for the continued slump in shipments to the US. Japan's household spending rose in June for a second month in a show of some resilience despite persistent inflation. Outlays by households adjusted for inflation increased 1.3% from a year ago, led by spending on transportation and housing related costs. Vietnam's exports jumped more than expected in July, with buyers racing to avoid a 20% tariff on the country's exports to the US. The Southeast Asian nation, an export powerhouse that sells everything from coffee and clothing to engine parts, has been shipping more goods this year to buyers aiming to avoid US tariffs. Emerging Markets Brazil is hosting COP30, the world's most important climate conference, this fall, while its state-owned oil company is moving a giant drillship to a site just over 100 miles off the coast of the Amazon rainforest in a desperate hunt for more crude — one it hopes will save the production of the nation's biggest export — from plunging in the 2030s. A discovery would support the nation's shrinking trade surplus, attract investments and boost royalty payments to a government afflicted by budget constraints. Indonesia's economy is growing at its fastest pace in two years. Not all consumers are buying it. World Aside from the BOE, officials in Mexico and Lesotho lowered interest rates. Central banks in Armenia, India, Serbia, the Czech Republic, Madagascar and Romania held rates steady. --With assistance from Nazmul Ahasan, Irina Anghel, Maria Eloisa Capurro, Nguyen Dieu Tu Uyen, Mariana Durao, Claire Jiao, Ian King, Hadriana Lowenkron, Catherine Lucey, James Mayger, Jonnelle Marte, Peter Millard, Yoshiaki Nohara, Jana Randow, Tom Rees, Grace Sihombing, Fran Wang, Prima Wirayani and Erica Yokoyama. The Pizza Oven Startup With a Plan to Own Every Piece of the Pie Digital Nomads Are Transforming Medellín's Housing Russia's Secret War and the Plot to Kill a German CEO It's Only a Matter of Time Until Americans Pay for Trump's Tariffs The Game Starts at 8. The Robbery Starts at 8:01 ©2025 Bloomberg L.P.
