US: Stocks end week mostly lower
[NEW YORK] Wall Street stocks mostly fell on Friday (Jun 20) amid weakness in some semiconductor shares as markets weighed the latest developments in the ongoing war between Iran and Israel.
Markets rose after US President Donald Trump's remarks on Thursday on the Middle East, allowing for up to two weeks before possible US military action against Iran.
But on Friday afternoon, Trump expressed doubt that European powers would be able to help end the Iran-Israel war, telling reporters, 'Europe is not going to be able to help in this'.
The Dow Jones Industrial Average finished up 0.1 per cent at 42,206.82.
But the broad-based S&P 500 shed 0.2 per cent to 5,967.84, while the tech-rich Nasdaq Composite Index fell 0.5 per cent to 19,447.41.
Analysts pointed to a pullback in some chip companies following a Wall Street Journal report that said the United States could revoke waivers used by some companies to access US technology in China.
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Asked about the matter, a Commerce Department spokesperson said that chipmakers will still be able to operate in China.
'The new enforcement mechanisms on chips mirror licensing requirements that apply to other semiconductor companies that export to China and ensure the US has an equal and reciprocal process,' the spokesperson added.
Adam Sarhan of 50 Park Investments described the market as on edge in anticipation of new headlines on trade actions or the Middle East.
'We have a situation where tensions in the Middle East missiles are still firing, there's no ceasefire and there's a fear that the US may be involved,' Sarhan said.
In light of uncertainty on Iran and other areas, 'investors are de-risking, they are selling stocks ahead of the weekend,' Sarhan said.
Fed governor Christopher Waller told CNBC that central banks should 'look through tariff effects on inflation' and focus instead on the underlying trend in price increases.
The Fed earlier this week voted to keep interest rates unchanged, as Fed chair Jerome Powell said the central bank could wait to see if Trump's tariffs revive inflation.
Among individual companies, Kroger jumped nearly 10 per cent after the supermarket chain raised its sales forecast. However, the company refrained from lifting other projections, saying the macroeconomic environment remains 'uncertain'.
CarMax surged 6.6 per cent after reporting a jump in quarterly profits as the company's CEO pointed to a 'very large and fragmented' used car market that 'positions us to continue to drive sales, gain market share and deliver significantly year-over-year earnings growth for years to come'. AFP
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Straits Times
an hour ago
- Straits Times
Harvard and Trump restart talks to potentially end bitter dispute
Harvard representatives sought a meeting after other higher education leaders expressed hope that it – on behalf of academia – would reengage with the administration. PHOTO: SOPHIE PARK/NYTIMES WASHINGTON - Harvard University and the Trump administration have restarted talks to potentially settle the acrimonious dispute that led President Donald Trump to wage a far-reaching attack on the school and raised stark questions about the federal government's place in higher education, according to three people briefed on the negotiations. The discussions began again this week at a meeting in the White House. At the meeting, Harvard representatives showed White House officials a PowerPoint presentation that laid out measures the school has taken on anti-Semitism , viewpoint diversity and admissions. In turn, the White House signalled other steps it would like for Harvard to take on those subjects and later sent a letter laying out conditions that could resolve the conflict, according to one of the people. It is unclear how Harvard plans to respond to the letter. A university spokesperson declined to comment on the matter. Harvard representatives sought a meeting after other higher education leaders expressed hope that it – on behalf of academia – would reengage with the administration. And Harvard's outreach came after Education Secretary Linda McMahon publicly raised the prospect of negotiations with a university she routinely criticised . Harvard officials sensed an opening and suggested a briefing on steps the school has taken in recent years, two of the people said. It is unclear how close both sides are to a potential deal and the exact terms any final agreement would entail. In a post on Truth Social, Mr Trump said it was 'very possible that a Deal will be announced over the next week or so.' Two people briefed on the discussions said it was highly unlikely a deal would be reached in the next week. Harvard has been widely praised by Democrats, academics, its alumni and democracy advocates for fighting the Trump administration. But top Harvard officials, according to two people briefed on the matter, have become increasingly convinced in recent weeks that the school has little choice but to try to strike a deal with the White House. The Harvard officials believe that if the university remains at odds with the administration that it is likely to become far smaller and less ambitious as Trump tries to keep pummelling it with funding cuts, federal investigations and limits on visas for international students. Now, the school may find itself having to explain a deal with Mr Trump. One person close to Harvard said that while the school was back at the negotiating table, it would not compromise its values or its First Amendment rights in any deal with the administration. Others briefed on the discussions laid out a broad framework for a possible pact. Under one approach being discussed, the administration would restore a major portion of the billions in federal research funding that it stripped from Harvard this spring. It would also cease pursuit of a range of legal actions against Harvard, including its quest to bar international students who make up about a quarter of the university's enrolment , according to one of the people. In exchange, Harvard would agree to take even more aggressive action than it already has to address issues such as anti-Semitism , race and viewpoint diversity. The White House has pushed Harvard to make new commitments to change its admissions and hiring practices, one of the people close to the negotiations said. Whatever the outcome, the White House's direct involvement, one of the people said, signalled the seriousness of the talks. The people spoke on the condition of anonymity because they did not want to be identified discussing negotiations that were supposed to remain private. Harvard's decision to reopen talks with the administration is a sharp departure from how it has handled its battle with Mr Trump since April. That month, the school cut off discussions with the administration after it received a letter – which the administration later claimed was accidentally sent – that made a series of extraordinary demands that the school believed would have compromised its independence. The White House, according to one person briefed on the negotiations, hopes that an agreement with Harvard might serve as a framework for other elite colleges to strike deals with Mr Trump. Other schools have been in discussions with the Trump administration about making deals that would keep their federal funding intact and avoid the president's ire, two of the people said. Word of the negotiations involving Harvard emerged soon after a federal judge in Boston blocked the government's effort to bar international students from the university. In a social media post on June 20 , Mr Trump hyped the prospects of an accord, asserting that 'if a Settlement is made on the basis that is currently being discussed, it will be 'mindbogglingly' HISTORIC, and very good for our Country'. Although the Trump administration has targeted other elite universities in recent months, its clash with Harvard has been the most bitter. The nation's oldest and wealthiest university, the administration contended, was a mismanaged well of bigotry that did not deserve any of the federal research money that has helped power American academia since around World War II. Although Harvard acknowledged assorted shortcomings, university leaders were stunned April 11 when the Trump administration proposed broad power for the government over the school. Among other conditions, the administration wanted Harvard to establish 'merit based' hiring and admissions policies, and to see the influence of its faculty curbed. It sought a review for 'viewpoint diversity,' the shutdown of any programmes related to diversity, equity and inclusion, and an outside review to examine 'those programmes and departments that most fuel anti-Semitic harassment or reflect ideological capture.' The government also asked for Harvard to adjust its 'recruitment, screening and admissions of international students,' audits of university data and reports 'at least until the end of 2028' about the university's compliance with the Trump administration's conditions. Before the letter, Harvard leaders had been receptive to reaching some kind of truce with the government, which had been sounding warnings about the university's relationship with Washington. But school officials recoiled at the missive, publicly rejected it, lost billions in federal funding and then headed to court. Negotiations collapsed, and the furore between the administration and Harvard only mounted. The government launched a volley of attacks against the university, including repeated efforts to block Harvard from enrolling international students, a threat against its tax-exempt status and a Justice Department investigation that invoked the False Claims Act, a law usually employed to target entities that try to defraud the government. Meanwhile, the government kept cutting off research money and warning Harvard not to bother applying for funds in the future. Harvard officials outwardly projected defiance and depicted their fight against the government as a righteous confrontation over academic independence. But inside the university, top leaders were surveying the landscape and seeing few optimal outcomes. Even if the university prevailed in court, some came to believe, it could still be dogged by fights with an administration not scheduled to leave office until 2029. And the university's $53 billion endowment was loaded with restrictions, leaving Harvard more financially vulnerable than a cursory glance at its books perhaps suggested. Harvard leaders were keenly aware of perceptions of the government's talks with Columbia University, which agreed to a range of Trump administration demands in its continuing quest for the resumption of $400 million in cancelled grants and contracts. Columbia's approach had been derided as capitulation. But some inside Harvard have weighed whether a settlement now – after a furious fight with the government that included some interim legal victories for the university – would leave the school less exposed to criticism than it would have if it had cut a deal months ago. Trump administration officials had been open to talks for weeks, even as the White House taunted and threatened the school with new actions. Until recently, though, Harvard's top board resisted talks. The members directed the school's battalion of lawyers, many of them fixtures of conservative legal circles, not to engage with the government. The calculus has since shifted, in parallel with a handful of courtroom successes for Harvard and Mr Trump's public venting that the university had drawn a favourable judge. Any deal, though, is certain to be closely scrutinised by the university's students, faculty members, donors and alumni. In an interview in May, Dr Lawrence H. Summers, a former Harvard president, was reluctant to assess any potential agreement before its terms were known. He said, though, that 'it would be a tragedy if Harvard resolved this in a way that gave support and encouragement to the idea of extralegal extortion.' Until June 20 , there had been no public signal of active discussions between Harvard and the government. The judge in Boston, Ms Allison D. Burroughs, an appointee of President Barack Obama, has scheduled a hearing for July 21 to hear more extensive arguments in Harvard's case about cuts to its research funding. Mr Trump himself has routinely bashed Harvard in public and in private. As he concluded lunch in the West Wing on April 1, he mused about his government blocking every cent it could from flowing to Harvard. Later on, he would assail Harvard online as 'a JOKE' that 'teaches Hate and Stupidity, and should no longer receive Federal Funds.' During the spring, he floated a revocation of Harvard's tax-exempt status and an idea to give its research money to trade schools. On June 20 , though, after his government had resumed talks with the university, the president was far more generous in his assessment of Harvard's leaders. 'They have acted extremely appropriately during these negotiations, and appear to be committed to doing what is right,' he wrote. NYTIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
an hour ago
- Straits Times
Israel says its attacks have delayed Iran's presumed nuclear programme by 2-3 years
Smoke rises following an Israeli attack on the IRIB building, the country's state broadcaster, in Tehran, on June 16. PHOTO: REUTERS A view of the damaged building of Iranian state TV after an Israeli airstrike in Tehran on June 19. PHOTO: EPA-EFE Smoke rises during an Israeli air strike in Tehran, on June 18. PHOTO: ARASH KHAMOOSHI/NYTIMES Iran has not updated its tolls since June 15, when it said that Israeli strikes had killed at least 224 people. PHOTO: AFP Israel says its attacks have delayed Iran's presumed nuclear programme by 2-3 years JERUSALEM - Israel claimed on June 21 that it has already set back Iran's presumed nuclear programme by at least two years, a day after US President Donald Trump warned that Tehran has a 'maximum' of two weeks to avoid possible American air strikes. Mr Trump has been mulling whether to involve the United States in Israel's bombing campaign, indicating in his latest comments that he could take a decision before the two week deadline he set this week. Israel said on June 21 that its air force had launched fresh airstrikes against missile storage and launch sites in central Iran, as it kept up a wave of attacks it says are aimed at preventing their rival from developing nuclear weapons – an ambition Tehran has denied. 'According to the assessment we hear, we already delayed for at least two or three years the possibility for them to have a nuclear bomb,' Israel's foreign minister Gideon Saar said in an interview published on June 21 . Mr Saar said Israel's week-long onslaught will continue. 'We will do everything that we can do there in order to remove this threat,' he told German newspaper Bild. Top diplomats from Britain, France and Germany met their Iranian counterpart Abbas Araghchi in Geneva on June 20 and urged him to resume talks with the United States that had been derailed by Israel's attacks. French Foreign Minister Jean-Noel Barrot said: 'We invited the Iranian minister to consider negotiations with all sides, including the United States, without awaiting the cessation of strikes, which we also hope for.' But Mr Araghchi told NBC News after the meeting that 'we're not prepared to negotiate with them (the United States) anymore, as long as the aggression continues'. Mr Trump was dismissive of European diplomacy efforts, telling reporters: 'Iran doesn't want to speak to Europe. They want to speak to us. Europe is not going to be able to help in this.' Mr Trump also said he is unlikely to ask Israel to stop its attacks to get Iran back to the table. 'If somebody's winning, it's a little bit harder to do,' he said. Any US involvement would likely feature powerful bunker-busting bombs that no other country possesses to destroy an underground uranium enrichment facility in Fordo. On the streets of Tehran, many shops were closed and normally bustling markets largely abandoned on June 20 . 450 missiles A US-based NGO, the Human Rights Activists News Agency, said on June 20 that based on its sources and media reports that at least 657 people have been killed in Iran, including 263 civilians. Iran has not updated its tolls since June 15 , when it said that Israeli strikes had killed at least 224 people, including military commanders, nuclear scientists and civilians. Since Israel launched its offensive on June 13, targeting nuclear and military sites but also hitting residential areas, Iran has responded with barrages which Israeli authorities say have killed at least 25 people. A hospital in the Israeli port of Haifa reported 19 wounded, including one person in a serious condition, after the latest Iranian salvo. Israel's National Public Diplomacy Directorate said more than 450 missiles have been fired at the country so far, along with about 400 drones. Iran's Revolutionary Guards said they had targeted military sites and air force bases. Madness Western powers have repeatedly expressed concerns about the rapid expansion of Iran's nuclear programme, questioning in particular the country's accelerated uranium enrichment. The International Atomic Energy Agency said that Iran is the only country without nuclear weapons to enrich uranium to 60 per cent. However, it added that there was no evidence it had all the components to make a functioning nuclear warhead. The agency's chief Rafael Grossi told CNN it was 'pure speculation' to say how long it would take Iran to develop weapons. Britain's Foreign Secretary David Lammy said the conflict was at a 'perilous moment' and it was 'hugely important that we don't see regional escalation'. Arab League foreign ministers gathered in Istanbul late on June 20 to discuss the war, Turkish state news agency Anadolu said, on the eve of a weekend gathering of the Organisation of Islamic Cooperation. Switzerland announced it was temporarily closing its embassy in Tehran, adding that it would continue to fulfil its role representing US interests in Iran. AFP Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
an hour ago
- Business Times
Trump pledge of quick China magnet flows has yet to materialise
[HONG KONG] Almost 10 days since US President Donald Trump declared a 'done' trade deal with Beijing, US companies remain largely in the dark on when they will receive crucial magnets from China, and whether Washington, in turn, will allow a host of other exports to resume. While there has been a trickle of required permits, many American firms that need Chinese minerals are still waiting on Beijing's approval for shipments, according to sources familiar with the process. China's system is improving but remains cumbersome, they said, contrary to Trump's assurances rare earths would flow 'up front' after a Jun 11 accord struck in London. The delays are holding an array of American industries hostage to the rocky US-China relationship, as some firms wait for magnets and others face restrictions son elling to China. That friction risks derailing a fragile tariff truce clinched by Washington and Beijing in Geneva last month, and triggering fresh rounds of retaliation. Interviews with multiple Western buyers, industry insiders and officials familiar with discussions revealed frustration over vague policies in both countries and lingering confusion about what level of magnet approvals from China would trigger Trump to abandon his tit-for-tat export curbs. 'Even if export approvals accelerate, there are so many unknowns about the licensing regime that it's impossible for companies to have a strong sense of certainty about future supply,' said Christopher Beddor, deputy China research director at Gavekal Research. 'At a minimum, they need to factor in a real possibility that talks could break down again, and exports will be halted.' In response to China's sluggishness on magnets, Trump last month restricted US firms from exporting chip software, jet engines and a key ingredient to make plastic to China until President Xi Jinping restores rare-earth exports. Companies subject to Washington's curbs have halted billions of US dollars in planned shipments as they wait for players in unrelated sectors to secure permits from Beijing, which could take weeks or even months to process, given the current pace. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Corporate chiefs affected by the export-control spat have sought clarity from the administration on its strategy, according to sources familiar with the matter. The Commerce Department, which administers the rules, has offered few details, they added. Oil industry executives have tried to convince Trump officials that blocking exports of ethane – a gas used to make plastics – is contrary to US national security interests, according to sources familiar with the deliberations. Business leaders have asked for export restrictions to be removed but that's been unsuccessful so far, the sources said. Energy and chemical giant INEOS Group Holdings has one tanker full of ethane waiting to go, while Enterprise Products Partners has three to four cargo ships stuck in limbo, according to a source familiar with the matter. That's particularly galling because China has adequate ethane supplies in reserve and can switch to using naphtha from the Middle East and other regions for much of their production, the sources said. Representatives from the companies did not respond to requests for comment. Industry figures have consistently told the Trump administration the ethane export restrictions are inflicting more pain on US interests than on China, according to the sources. China's Ministry of Commerce, which administers export licenses, has not responded to Bloomberg's questions on how many for rare earths have been granted since the London talks. At a regular briefing in Beijing on Thursday, spokesperson He Yadong said Beijing was 'accelerating' its process and had given the go-ahead to a 'certain number of compliant applications'. Access to rare earths is an issue 'that is going to continue to metastasise until there is resolution,' said Adam Johnson, chief executive officer of Principal Mineral, which invests in US mineral supply chains for industrial defence. 'This is just a spigot that can be turned on and off by China.' China only agreed to grant licenses, if at all, for six months, before companies need to reapply for approvals. Firms doing business in the US and China could see recurring interruptions, unless the Commerce Ministry significantly increases its pace of process applications. Adding an extra layer of jeopardy for US companies, Chinese suppliers to America's military-industrial base are unlikely to get any magnet permits. After Trump imposed sky-high tariffs in April, Beijing put samarium – a metal essential for weapons such as guided missiles, smart bombs and fighter jets – on a dual-use list that specifically prohibits its shipment for military use. Denying such permits could cause ties to further spiral if Trump believes those actions violate the agreement, the terms of which were never publicised in writing by either side. That sticking point went unresolved during roughly 20 hours of negotiations last week in the UK capital, sources familiar with the details said. Complicating the issue, companies often buy magnets from third-party suppliers, which serve both defence and auto firms, according to a person familiar with the matter. That creates a high burden to prove to Chinese authorities a shipment's final destination is a motor not a missile, the source added. Beijing still has not officially spelt out the deal's requirements, nor has Xi publicly signalled his endorsement of it – a step Trump said was necessary. 'The Geneva and London talks made solid progress towards negotiating an eventual comprehensive trade deal with China,' White House spokesperson Kush Desai said. 'The administration continues to monitor China's compliance with the agreement reached at Geneva.' China's Commerce Ministry is working to facilitate more approvals even as it asks for reams of information on how the materials will be used, according to sources familiar with the process. In some cases, companies have been asked to supply data including detailed product designs, one of the sources said. Morris Hammer, who leads the US rare-earth magnet business for South Korean steelmaker Posco Holdings, said Chinese officials have expedited shipments for some major US and European automakers since Trump announced the agreement. China's Advanced Technology & Materials said on Wednesday it had obtained permits for some magnet orders, without specifying for which destinations. The company's customers include European aerospace giant Airbus SE, according to data compiled by Bloomberg. Around half of US suppliers to Toyota Motor, for example, have had export licenses granted, the company said – but they're still waiting for those materials to actually be delivered. It's likely some of the delays are transport-related, one of the sources said. Even with permits coming online, rare-earth materials are still scarce because overseas shipments were halted for two months starting in April, depleting inventories. Trump's agreement 'will allow for rare earths to flow out of the country for a short period of time, but it's not helping the auto industry because they are still talking shutdowns', Hammer said. 'Nobody trusts that this thaw is going to last.' For many automakers, the situation remains unpredictable, forcing some to hunt for alternatives to Chinese supplies. Two days after Trump touted a finalised trade accord in London, Ford Motor chief executive officer Jim Farley described a 'day-to-day' dynamic around rare-earths licenses – which have already forced the company to temporarily shutter one plant. General Motors has emphasised it's on firmer footing in the longer term, because it invested in domestic magnet making back in 2021. The automaker has an exclusive deal to get the products from MP Materials in Texas, with production starting later in the year. It has another deal with eVAC of Germany to get magnets from a South Carolina plant starting in 2026. In the meantime, GM and its suppliers have applied for permits to get magnets from China, a source familiar with the matter said. Scott Keogh, the CEO of Scout Motors – the upstart EV brand of Volkswagen – told Bloomberg Television his company is re-engineering brakes and drive units to reduce the need for rare earths. Scout is building a plant in South Carolina to make fully electric and hybrid SUVs as well as trucks starting in 2027. Until the rare-earth supply line is reopened to Washington's satisfaction, Trump has indicated that the US is likely to keep in place its own export restrictions. Senior US officials have suggested the curbs are about building and using leverage, rather than their official justification: national security. Commerce Secretary Howard Lutnick said the measures were used to 'annoy' China into complying with a deal US negotiators thought they'd already reached. Restrictions on sales to China of electronic design automation (EDA) software for chipmaking are emblematic of the standoff. Those EDA tools are used to design everything, from the highest-end processors for the likes of Nvidia and Apple to simple parts, such as power-regulation components. Fully limiting China's access to the best software, made by a trio of Western firms, has been a longtime priority in some Washington national security circles – and would build on years of US measures targeting China's semiconductor prowess. While some senior Trump officials specifically indicated the administration would relax some semiconductor-related curbs if Beijing relents on rare earths, EDA companies still lack details on when, and whether, their China access will be restored, said industry officials who requested anonymity to speak candidly. Even if that happens, there's a worry that heightened geopolitical risks will push Chinese customers to hunt for other suppliers or further develop domestic capabilities. 'The risk is there for the London deal to fall apart,' said Alicia Garcia Herrero, chief economist for Asia-Pacific at Natixis. 'Because rare earths is a very granular issue and mistakes can be made.' BLOOMBERG
