Latest news with #USTreasury
Japan Forward
4 hours ago
- Business
- Japan Forward
Ishiba Must Not Allow Prolonged Japan-US Trade Negotiations
このページを 日本語 で読む As Prime Minister Shigeru Ishiba flails and Japanese diplomacy deteriorates, we cannot help but feel disheartened. Ishiba managed to meet with United States President Donald Trump for about 30 minutes in Kananaskis, western Canada, host site of the 2025 Group of Seven Summit. However, their failure to reach an agreement on tariffs on the sidelines of the G7 was disappointing. At the same time, it was hardly unexpected. There is one issue that should not be overlooked but went unmentioned. Didn't the two leaders discuss the Middle East crisis and the fierce ongoing fighting between Israel and Iran? Japan relies on the Middle East for over 90% of its crude oil. Also, many tankers bound for Japan sail through the Persian Gulf. Therefore, the conflict threatens to disrupt oil shipment routes. For Japan, responding to the situation in the Middle East should be a major issue on a par with tariff negotiations. The summit discussions clearly fell short. After all, why would you meet with the president of your ally and not discuss the Middle East? G7 working session on the global economy. (©Canada G7 website) For the Prime Minister not to disclose what was actually discussed would also be strange. Japan could be viewed as sidelined in the Middle East situation. Either way, hasn't the Prime Minister demonstrated a lack of resolve in shouldering responsibility for the nation's destiny? Ishiba did comment on the failure to reach an agreement in the tariff negotiations, however. "We are exploring the possibility of reaching an agreement in line with the national interest," said the Prime Minister. Ishiba is right not to be so eager to achieve results that he makes easy concessions on issues vital to Japan. Poor outcomes on issues such as US tariffs on Japanese automobiles could undermine the national interest. It was already apparent that only the two leaders would be able to break the deadlock in negotiations. Minister of State for Economic Revitalization Ryosei Akazawa has already participated in a total of six Cabinet-level meetings with his US counterparts. However, they failed to reach an agreement. So, why is there no target date for when an agreement will be reached, even after the Ishiba-Trump meeting? There is also concern that the Trump administration's emphasis on negotiations with China may dampen momentum for an agreement with Japan. Initially, the administration said Japan-US negotiations were its top priority. We should not let this situation prolong the Japan-US trade negotiations. Moreover, we cannot allow the negative impact of Trump's tariffs on the Japanese economy to spread. The US administration's high tariff policy approach is fluid. Trump has declared that there may be further increases in tariffs on motor vehicles. However, US Treasury Secretary Scott Bessent has indicated the American side may extend the current reciprocal tariffs suspension. What we need from the Ishiba administration is a strategic and proactive approach to pursuing national interests. It cannot allow Japan to be constantly at the mercy of the US side. Likewise, there is no need to be passive or to think that the outcome of any agreement depends on Trump. Author: Editorial Board, The Sankei Shimbun このページを 日本語 で読む
Yahoo
8 hours ago
- Business
- Yahoo
US Regulators Mull Easing Banks' Capital Rule on Treasury Trades
In a move aimed at enhancing liquidity in the $29 trillion U.S. Treasury market, U.S. regulators are planning to ease a key capital requirement that has long constrained large banks' trading activity. The Federal Reserve, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency are reportedly considering a proposal to lower the enhanced supplementary leverage ratio (SLR) by up to 1.5 percentage points for the largest U.S. banks, including JPMorgan Chase JPM, Goldman Sachs GS, Morgan Stanley MS, and Wells Fargo WFC. Currently, all U.S. banks are obligated to hold capital equal to at least 3% of their total exposures, including assets and off-balance sheet items like derivatives. The largest global banks are required to maintain an additional 2%, bringing their minimum leverage ratio to 5%. The proposal would reduce the capital requirement under the SLR for bank holding companies from 5% to a range of 3.5% to 4.5%, while subsidiaries could see their threshold drop from 6% to the same range. Fed Chair Jerome Powell has raised concerns that strict capital rules may limit banks from holding Treasuries, particularly during times of volatility. Under the current framework, Treasuries are treated in the same category as higher-risk assets, which can reduce incentives for banks to trade or hold them. Michelle Bowman, the Fed's vice chair for supervision, earlier this month, stated that leverage rules are meant to support capital strength. However, when these ratios are set too high, they may limit market activity and reduce liquidity. A proposed easing of these capital requirements could benefit major banks such as JPMorgan Chase, Goldman Sachs, Morgan Stanley, and Wells Fargo by reducing the amount of capital they must hold in reserve. This would give them more flexibility to expand operations, particularly in lending and Treasury trading. In addition, lower capital buffers could enhance bank profitability by freeing up funds for investment and business growth. However, the overall effectiveness of the changes will depend on how banks respond and whether regulators introduce further reforms. Currently, JPMorgan, Morgan Stanley, and Wells Fargo carry a Zacks Rank #3 (Hold), while Goldman Sachs has a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Wells Fargo & Company (WFC) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Morgan Stanley (MS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
Time of India
11 hours ago
- Business
- Time of India
Trumponomics: How US president Donald Trump has triggered a financial roller coaster; shaken global markets in 5 months
Ever since US President Donald Trump took office, five months ago, his economic policies have unleashed widespread volatility across global financial markets, triggering investor pullback, a weakening dollar, and a sharp divergence in global stock performance. Here is a look at the financial roller-coaster rise: Wall street After years of dominating global markets, US stocks are now lagging behind — with Europe reaping the gains. Since the start of the year, Wall Street's S&P 500 index has risen just two percent, while Frankfurt's main index has surged 16 percent. London and Paris have also outperformed, recording gains of eight and three percent respectively. Kevin Thozet of investment firm Carmignac attributed the underperformance to President Trump's inconsistent stance on tariffs. Thozet told AFP that the president's shifting stance on tariffs had fuelled significant uncertainty around how they might affect economic growth. Dollar The US dollar has shed 10 percent of its value against the euro over the past six months, its steepest decline in three decades, according to Robert Farago, analyst at British investment firm Hargreaves Lansdown. While President Trump's tariff policies are seen as the primary driver, mounting concerns over the ballooning US debt, amplified by a costly presidential budget proposal, have further weighed on the currency. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Thị trường có dấu hiệu suy thoái không? IC Markets Đăng ký Undo Though some have floated the idea of the Chinese yuan as a possible alternative to the dollar, ECB President Christine Lagarde recently highlighted the euro's potential for a stronger international role. Still, significant hurdles remain for any currency seeking to challenge the dollar's dominance. Debt American debt has long been seen as a bedrock of the global financial system, with investors worldwide turning to US Treasury bonds as a safe haven. But that confidence is starting to crack. JPMorgan Chase chief Jamie Dimon recently warned that the ballooning US debt is a "real problem" and that bond markets are entering a "tough time." At the end of May, yields on 30-year US Treasury bonds crossed the key five percent threshold—an indication of waning faith in America's ability to manage its debt. "I've always told clients they need US debt if they want an asset that remains intact even in a disaster, but I think that's no longer the case," said Alexandre Hezez, strategist at Banque Richelieu. Adding to the concern, Steve Sosnick of Interactive Brokers noted that the dollar is weakening even as interest rates rise, "a sign that money is leaving the US." Oil Donald Trump made lowering oil prices a key priority in his efforts to curb US inflation. In April, crude prices dipped below $60 a barrel, their lowest level since 2021. However, this drop was driven less by policy success and more by market fears. Investors, rattled by Trump's tariff moves, anticipated a global economic slowdown that would weaken demand. More recently, rising tensions in the Middle East have pushed prices back up. The military escalation between Israel and Iran has driven oil back to around $75 a barrel. Gold and crypto winning the game Gold has traditionally been seen as the ultimate safe haven during times of uncertainty and 2025 has been no different. Soaring demand has pushed its value up by nearly 30 percent since the start of the year. Much of this rally has been fuelled by major central banks, which are increasingly turning to gold over the US dollar to shore up their reserves. At the same time, Donald Trump has thrown his weight behind cryptocurrencies. Alongside his personal investments, his administration has introduced measures to integrate digital assets more firmly into the financial system. Bitcoin surged past the $100,000 mark for the first time shortly after the US election, capping off a nearly 60 percent gain over the past year. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Economic Times
11 hours ago
- Business
- Economic Times
How Trumponomics has shaken global markets: From falling dollar to soaring gold and crypto, here's what experts are saying
Donald Trump's policies have shaken global financial markets. US stocks face pressure, while European markets thrive. The dollar weakens amid debt concerns. Investors seek safe havens like gold and crypto. Bitcoin value has increased. Oil prices fluctuate due to geopolitical tensions. Global markets react to Trump's unpredictable economic decisions. Investors are closely monitoring the situation. Tired of too many ads? Remove Ads US Stocks Under Pressure, Europe Ahead Germany's Frankfurt index is up 16% London's market grew 8% Paris's stock exchange rose by 3% Dollar Losing Strength Tired of too many ads? Remove Ads Fears over Trump's high-cost budget plans Worries about America's growing debt Ongoing trade tensions and tariffs US Debt Raising Alarms Interest rates on 30-year US Treasury bonds went above 5%, showing rising concern JPMorgan's CEO called US debt a 'real problem' Analysts say money is moving out of the US, even as interest rates rise Gold and Crypto on the Rise Bitcoin passed $100,000 Crypto values jumped 60% in a year Oil Prices See Highs and Lows In just a few months since taking office, US President Donald Trump has turned the world's financial markets upside down. From falling stocks and a weak dollar to rising gold and crypto, investors around the world are reacting quickly, and nervously, to his unpredictable economic a simple look at the ups and downs:Wall Street isn't doing as well as it used to. The S&P 500 has only grown by 2% this year. In comparison:As per experts quoted by AFP this slowdown is due to Trump's constant changes on tariff policies, which have caused uncertainty for US dollar has lost 10% of its value against the euro in just six months, its worst drop in 30 main reasons?Some suggest that other currencies like China's yuan or the euro could replace the dollar, but there are hurdles. The yuan isn't freely traded, and the eurozone still has internal years, US government debt was seen as one of the safest investments in the world. But now, experts are now believe US bonds are no longer a guaranteed safe bet during global markets get shaky, investors turn to gold, and this time is no different. Gold prices have jumped nearly 30% this year, as people seek has also shown support for cryptocurrencies, helping to bring them into the mainstream. After his election win:Trump wanted lower oil prices to ease US inflation. In April, oil dropped below $60 per barrel, its lowest since 2021. But recent military tensions between Israel and Iran have pushed prices back up to around $75 per barrel. Global markets are reacting in all directions, and investors are watching closely to see what Trump does next.
Time of India
13 hours ago
- Business
- Time of India
How Trumponomics has shaken global markets: From falling dollar to soaring gold and crypto, here's what experts are saying
In just a few months since taking office, US President Donald Trump has turned the world's financial markets upside down. From falling stocks and a weak dollar to rising gold and crypto, investors around the world are reacting quickly, and nervously, to his unpredictable economic decisions. Here's a simple look at the ups and downs: US Stocks Under Pressure, Europe Ahead Wall Street isn't doing as well as it used to. The S&P 500 has only grown by 2% this year. In comparison: by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like War Thunder - Register now for free and play against over 75 Million real Players War Thunder Play Now Undo Germany's Frankfurt index is up 16% London's market grew 8% Paris's stock exchange rose by 3% As per experts quoted by AFP this slowdown is due to Trump's constant changes on tariff policies, which have caused uncertainty for investors. Dollar Losing Strength The US dollar has lost 10% of its value against the euro in just six months, its worst drop in 30 years. The main reasons? Live Events Fears over Trump's high-cost budget plans Worries about America's growing debt Ongoing trade tensions and tariffs Some suggest that other currencies like China's yuan or the euro could replace the dollar, but there are hurdles. The yuan isn't freely traded, and the eurozone still has internal differences. US Debt Raising Alarms For years, US government debt was seen as one of the safest investments in the world. But now, experts are worried. Interest rates on 30-year US Treasury bonds went above 5%, showing rising concern JPMorgan's CEO called US debt a 'real problem' Analysts say money is moving out of the US, even as interest rates rise Some now believe US bonds are no longer a guaranteed safe bet during global crises. Gold and Crypto on the Rise When markets get shaky, investors turn to gold, and this time is no different. Gold prices have jumped nearly 30% this year, as people seek safety. Trump has also shown support for cryptocurrencies, helping to bring them into the mainstream. After his election win: Bitcoin passed $100,000 Crypto values jumped 60% in a year Oil Prices See Highs and Lows Trump wanted lower oil prices to ease US inflation. In April, oil dropped below $60 per barrel, its lowest since 2021. But recent military tensions between Israel and Iran have pushed prices back up to around $75 per barrel. Global markets are reacting in all directions, and investors are watching closely to see what Trump does next.
