US Focus on Auto Trade Gap Is Sticking Point for Japan Deal
A strong US focus on its auto trade deficit with Japan is a key factor keeping the two nations from reaching a deal, according to a Japanese opposition party leader who met with Prime Minister Shigeru Ishiba to discuss the tariff negotiations.
Yoshihiko Noda, who heads the Constitutional Democratic Party of Japan, said on Thursday that he asked Ishiba what was preventing the two sides from finding common ground in the talks that have continued for around two months.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
8 minutes ago
- Bloomberg
Stocks Rattled Ahead of Big Options Test
Get a jump start on the US trading day with Matt Miller, Katie Greifeld and Sonali Basak on "Bloomberg Open Interest." SoftBank founder Masayoshi Son is seeking to team up with TSMC on a trillion-dollar industrial complex in Arizona to build robots and AI. President Trump signals he would give diplomacy a chance before deciding whether to strike Iran. And Bezel Co-Founder & CEO Quaid Walker joins Bloomberg Open Interest to talk about the luxury watch market. (Source: Bloomberg)
CBS News
8 minutes ago
- CBS News
When will we know the NYC mayoral primary election winner?
New York City voters are casting their ballots in the primary election for a Democratic mayoral nominee, and many are wondering when we will know who won -- and how ranked choice voting will impact the results, and their timing. Early voting wraps up this weekend, and Election Day is next Tuesday, June 24. Are we going to get results on primary night? We will see unofficial first choice results after polls close at 9 p.m., but that's not the end of the story, considering ranked choice voting. Those unofficial first choice results will include those marked as first choice from early voting, Election Day, and valid mail-in ballots. If, however, no candidate goes over 50% of the vote - and considering the large number of candidates running in this race, that seems very likely - we will then move into ranked choice elimination rounds. Under the system, the candidate who got the fewest first-round votes will then be eliminated, and voters who ranked that candidate first on their ballots will then have their second choice candidate counted. That process will then repeat until one candidate exceeds 50% of the vote. So when will we get a clear picture of the winner? We will likely start to get a clearer picture of the winner before official results are certified. Preliminary, non-certified results will come out a week after the election. We can then expect weekly reports, as elimination rounds are conducted. The entire process could take up to several weeks. In the last mayoral primary -- the first citywide election with ranked choice voting -- the final results were certified nearly a month after the election.. At a certain point, a presumed winner may start to emerge. For example, if a candidate is approaching 50% of the vote, and the gap between that candidate's unofficial numbers and their nearest competitor is greater than the number of ballots still needing to be counted, then that person will almost certainly become the winner. The final, certified results still won't come out until all ballots are counted, including early voting, mail-in, absentee, military, affidavit and emergency ballots.
Bloomberg
9 minutes ago
- Bloomberg
Nature of dollar's broad 1H slump means it can extend into 2H
Path to dollar recovery is very narrow The mainly structural nature of the 1H selloff — driven by tariff policies and the associated worsening in global geopolitical and economic expectations and US fiscal considerations — means a sustainable and broad recovery may become feasible if we see a credible softening of, or U-turn in, tariff policies. That's not our central working assumption, but any path toward a multitude of fast and balanced bilateral trade deals would help lift uncertainty, boosting global risk appetite and the dollar. Crucially, at a time when US economic exceptionalism is questioned, confirmed strength in the core data or recovering soft data is the one scenario that would revive dollar bulls in 2H, in our view, though that's not our central scenario for now. Euro appeals as yields don't drive FX for now The euro's strong 1H performance was mainly driven by dollar weakness, but it was broad based and the fiscal stimuli announced by Germany and the EU are further bullish midterm cyclical and structural considerations, though the positive economic impact may not appear in the data before late 4Q or 2026. The expected near-term divergences between the ECB — still dovish — and the Fed — wait-and-see — have led to widening euro-US two-year yield differentials that would, in normal circumstances, give euro bears fresh ammunition. Still, economic and yield factors haven't been driving FX and may be sidelined for now and for as long as structural considerations continue to be key. We hold on to our expected $1.15-$1.20 euro-dollar range into 2H, while euro bears may have options via the euro-sterling channel. Yen: Reasons to be bullish beyond BOJ The yen may be a G-10 winner in allocation strategies at a time when tariff uncertainty has reignited the de-dollarization debate and sparked questioning about US economic strength. This has to be seen in a context in which diversification strategies outside the dollar gain momentum and the yen's allure increases, thanks to a more favorable Japanese economic cycle vs. a decade ago, normalizing BOJ policy and stable institutions. The case for defensive positioning adds to our bullish yen view, and so do valuation and historically low levels. After 1H's dollar-yen decline of 11%, the pair is now sticky near 145, but the domestic (the BOJ trajectory) and international (de-dollarization) trends identified in 1H remain in place, so our 145-140 view for 2H holds for now. Sterling has a domestic, international bullish case Our sterling bull levels have already been reached and we maintain our $1.35-$1.40 sterling-dollar and 0.84-0.82 euro-sterling views into 2H. That's as long as the bullish drivers identified in 1H hold, with pound bulls primed by a better-than-expected economic performance and, just as important, a Bank of England that's resisting dovish temptations and offering yield support. The UK's management of the tariff threat, compared with the EU, gives pound bulls a further reason to shine. The G-10 FX de-dollarization narrative remains a prime bullish driver for sterling, as is the currency's regained appeal in diversification strategies. A sudden and unexpected turn in risk sentiment is the main risk for sterling bulls, given the pound's high-beta status. Franc bull? Yes, but beware the SNB A highly uncertain economic and geopolitical backdrop, and the associated de-dollarization theme, has boosted our defensive FX case this year, with the franc rising almost 10% vs. the dollar and outperforming most others in G-10 diversification strategies. Still, as we flagged on April 7, a strong franc was always going to pose a problem for the SNB, given the stage in the Swiss economic cycle and SNB President Martin Schlegel's remarks on May 6 (see below) validate this assessment, so franc bulls will have to consider the risk of a more interventionist SNB in 2H. Notwithstanding a 10% slide from its January high near 0.92, our 0.80 expected dollar-franc view holds as we consider 2H, while a 0.9250-0.9550 euro-franc range makes sense for as long as risk sentiment remains in relatively good shape. Krone appeals most in commodity FX in 2H In a broadly weaker dollar context and as tariff uncertainty persists, the Canadian dollar remains highly exposed across the G-10. Meanwhile, the Aussie remains attractive on valuation and is under-owned, but it's at the mercy of a late RBA easing cycle and China's economic fortunes. All this implies that the Norwegian krone is the most alluring among G-10 commodity currencies, even after an outstanding 1H gain of more than 11.5% vs. the dollar, given its yield appeal and likely interest in diversification strategies.
