Latest News
-
Wall Street Journal, August 26,
These are the most popular stories from the Wall Street Journal. These stories have not been verified and we cannot vouch their accuracy. President Trump announced that he was removing Federal Reserve Governor Lisa Cook. He cited allegations that Cook had submitted false information in mortgage applications. Hyundai Motor Group, a South Korean automaker, said that it would increase its U.S. investments to $26 billion by 2028 in order to expand on the market. Korean Air Lines has agreed to purchase 103 Boeing airplanes for $36.2 billion as part of its $50 billion investment into U.S. Aviation. Li Chenggang will be visiting Washington for a series of talks this week, marking the beginning of the trade negotiations in Washington. President Donald Trump has said that the U.S. would increase tariffs on tech companies and export restrictions to countries who tax or regulate U.S. firms. - Perplexity will pay publishers from a $42.5 million revenue pool for news articles that the artificial-intelligence company uses to answer queries.
-
After a 2-week high, oil prices have fallen on Russia and Ukraine supply concerns
The oil prices fell on Tuesday after a nearly 2% increase in the previous session. Traders were closely monitoring developments in the Russia/Ukraine conflict to ensure that fuel supplies in the region would not be disrupted. Brent crude dropped 32 cents or 0.5% to $68.48 a barrel at 0448 GMT. West Texas Intermediate crude (WTI crude) also fell 33 cents or 0.5% to $64.47 a barrel. WTI climbed above the 100-day moving Average, and both contracts reached their highest levels in over two weeks. In a recent note, IG analysts stated that the risks of crude oil prices rising further are skewed towards higher gains. This is especially true if the price continues to move above the resistance level between $64 and $65. The rally in oil on Monday was driven mainly by fears of supply disruptions after Ukraine attacked Russian energy infrastructure and traders were anticipating more U.S. sanction on Russian oil. The attacks caused gasoline shortages and disruptions to oil exports and processing in Moscow. They were a response to Moscow’s offensive on the frontlines and its bombardment of Ukraine’s gas and electricity facilities. Barclays said in a Monday note to its clients that oil prices are still in a narrow range due to geopolitical instability and fundamentals that remain relatively stable. Donald Trump, the U.S. president, has reiterated his threat to impose economic sanctions against Russia if a deal on peace is not reached in the next two week. Ole Hansen is the head of commodity strategy for Saxo Bank. He said that traders will also monitor the impact of U.S. tariffs looming against India due to its continued purchases of Russian oil. Indian exporters should prepare for disruptions following a U.S. Homeland Security confirmed Washington would impose a 25% additional tariff on all Indian origin goods starting Wednesday. The U.S. will impose duties on Indian exports of up to 50 percent - one of the highest Washington has ever imposed - as punishment for New Delhi increasing its purchases of Russian crude oil in August. The American Petroleum Institute's (API) U.S. inventories data is expected to be released later today. Traders expect a decline in crude oil and gasoline stock but could see a build-up in distillate stocks. (Reporting from Anjana Anil, Bengaluru; Emily Chow, Singapore; Editing done by Shri Navaratnam & Himani Sarkar).
-
A consortium led by Public Storage abandons its $1.4 billion pursuit of Abacus Storage in Australia
Abacus Storage, based in Australia, announced on Tuesday that the consortium led by Nathan Kirsh (a South African billionaire) and Public Storage of the United States had withdrawn their A$2,17 billion ($1.41billion) bid for its firm. Abacus' independent board committee received notification overnight that the consortium withdrawn its offer. The firm didn't give any explanation for the consortium's decision to withdraw. The consortium offered Abacus shareholders A$1.47 for each stapled security, and all shares that were not held by Ki Corp or its subsidiaries. Abacus rejected the offer in May citing concerns about timing, valuation and deal completion. The consortium increased their offer to A$1.65 a share in July for the Australian self storage firm. Furniture manufacturer Ki Corp controls directly and indirectly 59.39% Abacus storage. The consortium decided to leave after Abacus allowed them to do due diligence on its finances and internal documents. This is not the first time PSA, a storage facility operator, has backed out of a billion dollar deal to purchase a self-storage company. PSA backed out of an $11 billion purchase deal in 2023 after failing to win over its shareholders. Abacus Group shares, which manage Abacus Storage King, fell 7.3% to A$1.2 on their worst day since January 13
-
Oil prices drop after a two-week peak on Russia and Ukraine supply concerns
The oil prices fell on Tuesday, after spiking nearly 2% the day before. Traders were closely monitoring the developments in the Russia/Ukraine conflict to see if they could have an impact on fuel supply from that region. Brent crude futures dropped 16 cents or 0.23% to $68.64 a barrel at 0005 GMT. West Texas Intermediate crude futures (WTI) also fell 16 cents or 0.25% to $64.64. WTI Futures rose above the 100-day moving Average on Monday. Both contracts reached their highest levels in more than two weeks. In a recent note, IG analysts stated that the risks of crude oil prices rising further are skewed towards higher gains. This is especially true if the price continues to move above the resistance level between $64 and $65. The rally in oil on Monday was driven primarily by fears of disruptions to supply as Ukraine attacked Russian energy infrastructure and traders expected more U.S. sanction on Russian oil. The attacks caused gasoline shortages and disruptions to oil exports and processing in Moscow. They were a response to Moscow’s offensive on the frontlines and its bombardment of Ukraine’s gas and electricity facilities. Barclays said in a Monday note to its clients that oil prices are still in a narrow range due to geopolitical instability and fundamentals that remain relatively stable. Donald Trump, the U.S. president, has reiterated his threat to impose economic sanctions against Russia if a deal on peace is not reached in the next two week. The American Petroleum Institute will release its latest U.S. inventories data later today. Traders expect a decline in crude oil and gasoline stock but an increase in distillate stocks. (Reporting by Anjana Anil in Bengaluru Editing by Shri Navaratnam)
-
AirTrunk, a data centre operator, secures refinancing of $10.4 billion for APAC expansion
Australian data centre operator AirTrunk on Tuesday said it secured an A$16 billion ($10.40 billion) sustainability-linked refinancing for its Asia-Pacific operations. AirTrunk, in a website statement, said that this refinancing includes a S$2,25 billion green loan to build a data center in Singapore. This makes AirTrunk APAC's largest sustainable financier. AirTrunk, a hyperscale data center firm, announced that it had secured the support of 60 banks and financial institutions. This brings its total financing including operations in Japan to more than A$18 billion. The company, which was acquired by a Blackstone-led group for A$24 billion late last year, introduced a sustainability-linked loan (SLL) in 2021 that ties a company's financing to its sustainability goals. AirTrunk CEO Robin Khuda said, "After Blackstone and CPPIB acquired AirTrunk for A$24+ billion in 2024, our debt financing platform has been expanded to allow our rapid growth throughout the region."
-
Trump tells South Korea that he wants to meet Kim in North Korea this year.
Donald Trump, the U.S. president, said on Monday that he would like to meet North Korean leader Kim Jong Un in this year. He also stated that he is open to more trade discussions with South Korea despite his new criticisms of their visiting Asian ally. Trump told reporters that he would like to meet Kim Jong Un this year in the Oval Office, as he welcomed South Korea’s new President, Lee Jae Myung to the White House. "I am looking forward to meeting Kim Jong Un at the appropriate time." Trump and Lee met for the first time in tense conditions. Trump complained vaguely about a "Purge" or "Revolution" in South Korea via social media, before later retraction as a possible "misunderstanding" among the allies. The two sides are still arguing over the details of the trade agreement they signed in July, which spared South Korean exports from harsher U.S. duties. They also continue to argue about nuclear energy and military spending. Lee, after meeting Trump, attended a business conference with CEOs from South Korean firms and over 20 U.S. companies, including Carlyle Group Nvidia Boeing GE Aerospace Honeywell General Motors. Korean Air, South Korea's flag-carrier, is expected to place an order for 100 Boeing aircraft, according to sources. KIM IGNORES TRUMP'S CALLS North Korea didn't immediately respond to an inquiry for a comment on Trump’s remarks. Kim has refused to respond to Trump's repeated requests to resume the direct diplomacy that he conducted during his term of office from 2017-2021, which failed to produce a deal to stop North Korea's nuke program. North Korea's rhetoric is escalating, with Kim promising to accelerate his nuclear program while condemning U.S. and South Korea military exercises. Kim oversaw the testing of new air defenses systems at the weekend. Lee, in the Oval Office of the White House, avoided the dramatic confrontations that marked the February visit by Ukrainian president Volodymyr Zelenskiy and the May visit by South African President Cyril Ramaphosa. Lee used a strategy that has been well-worn by Trump's visitors from abroad. He talked golf, and praised the interior design and peacemaking of the Republican President. He had told reporters that he read the 1987 presidential memoir "Trump: the Art of the Deal" to prepare. The liberal South Korean encouraged Trump's engagement with North Korea. Lee, in Korean, said: "I hope that you will bring peace to the Korean Peninsula. It is the only nation divided in the world. I want you to meet Kim Jong Un and build a Trump World in North Korea, so that I can go golfing there. You can be a true world-historic peacemaker." South Korea's economy is heavily dependent on the U.S. Washington provides its security through troops and nuclear deterrence. Trump called Seoul a money machine that benefits from American military protection. DIFFICULT ISSUES Trump has been pressuring Seoul to reach a trade agreement and discuss issues related the bilateral military alliance. Trump said to reporters that after meeting Lee: "I believe we have a trade deal done." "They had some issues with it, and we stuck to our guns." They're going to do the deal they agreed on." He didn't elaborate and the White House didn't immediately respond to an inquiry for comment. Trump told Lee that he would share "intelligence" he received regarding South Korean investigations, which he claimed targeted churches and military bases. The White House didn't respond to an inquiry for further information. The police in Seoul raided Sarang Jeil Church this month. It was led by Jun Kwang-hoon who had been leading protests to support Yoon Suk Yol, Lee's former predecessor. In July, prosecutors who were investigating Yoon's attempted declaration of martial law executed a search warrant at the Korean portion of a joint military base operated by the United States. South Korean officials said that U.S. soldiers and equipment were not searched. The far-right in South Korea, particularly evangelical Christians and Yoon's supporters, view him as a victim to communist persecution. Trump is expected to press Lee to increase defense spending and to maintain the 28,500 U.S. soldiers in South Korea. When asked if he'd reduce these numbers to give the U.S. greater regional flexibility, Trump replied: "I don’t want to say it now," but suggested that Seoul could give the U.S. ownership over the "land we have the fort on," an apparent reference Camp Humphreys - a U.S. Army Garrison in South Korea. Lee said to reporters that it would be hard for Seoul to accept U.S. requests to adopt "flexibility", a reference to the use of U.S. troops for a broader range of operations including China-related threat. Lee is trying to find a balance between cooperating with the U.S. and not antagonizing China - Seoul's main trade partner. As he was on his way to Washington, Lee sent a delegation to Beijing to call for normalized relations. Lee will highlight South Korea's anticipated U.S. investment when he visits the Hanwha Group's shipyard in Philadelphia on Tuesday. Trump will attend the Asia-Pacific Economic Cooperation Summit in South Korea from October 30-November 1. Reporting by David Brunnstrom in Washington, Idrees Al, Steve Holland, Trevor Hunnicutt, and David Shepardson, and Josh Smith in Seoul, Hyun-Joo Jin, Jumin Park, and Jack Kim; Writing by Josh Smith; Editing and editing by Lincoln Feast; Ed Davies, Michael Perry and Rod Nickel
-
Sources say that Korean Air is expected to order 100 Boeing aircraft.
Sources say that Korean Air will announce a new order for 100 Boeing aircraft on Monday, coinciding with President Lee Jae Myung's visit to Washington. Sources said that the order will include a mixture of Boeing 787s and 777s. Cho Won Tae, CEO of Korean Air and Stephanie Pope, CEO of Boeing Commercial Airplanes attended an event in Washington with South Korean President Lee Myung-bak. Boeing has declined to comment. South Korea's Industry Ministry said in March that Korean Air would finalize a deal worth $32.7 billion for new Boeing and GE Aerospace engine. Last year, Korean Air announced that it would purchase 20 Boeing 777-9 planes and 20 Boeing 787-10 aircraft. It also said there were options to buy an additional 10 planes. The deal was signed in 2024. Boeing plane orders are expected to be announced by many countries that are negotiating with the Trump Administration. (Reporting and editing by Leslie Adler; David Shepardson)
-
Sources say that Canada's Alberta is looking to invest in Japan's refinery to boost oil exports.
Two sources familiar with this matter have confirmed that Alberta, Canada's largest oil producing province, is looking at investing in the refining industry of Japan. This would be an effort to reduce the heavy dependence of the oil exports on the United States, its top trading partner. The sources claim that Alberta's government has begun early talks with several Japanese refiners about a possible joint venture where it would fund the construction of an oil coker unit to allow one or more Japanese firms to process the heavy crude produced by Alberta's oil-sands. The deal would be a first for Alberta. It has never invested in energy infrastructure abroad, but it is eager to increase oil exports after the Trans Mountain pipeline expansion last year, which allowed Canada to ship more oil via the Pacific Coast. A deal with Japan could help boost oil flow on Trans Mountain, Canada's one and only east-west pipeline. It would also make the case for the new export pipeline the Alberta government is pushing for. Sources say that Canada and Japan are still in the very early stages of discussing an investment. Nothing has been finalized. A coker could increase the amount of Canadian heavy crude oil that Japan can process. The heavy, high-sulfur Canadian oil is not compatible with the majority of Japan's current refining plants. As a result, the country imports most of its oil. Increased purchases of Canadian crude oil that can be transported directly across the Pacific Ocean will also reduce Japan's dependency on shipments via the South China Sea. This is a major maritime chokepoint if tensions in the region arise. Canada's main oil-producing region, Alberta, is landlocked and has limited access to ports on the tidewater. The majority of Canadian oil exports, about 4 million barrels a day or 90 percent of total exports, are sent to the U.S. through pipelines running north-south. Alberta government officials have visited Asia on several occasions, notably Japan and South Korea. The goal was to drum up interest in Canadian crude oil. In an email, Brian Jean, Alberta's Energy Minister said that Alberta is looking into opportunities to sell its light and heavy crude oil in Japan. He refused to comment on whether Alberta was in discussions to invest in Japan’s refining industry. A spokesperson for Minister of Natural Resources Tim Hodgson confirmed that the Canadian federal government was aware of Japan's current opportunity to buy additional volumes of Canadian crude oil. The spokesperson stated in an email that "Natural Resources Canada is closely monitoring the developments and is open to partnering up with provinces and industries to support strategic energy project which advance Canada's interests." NEW OPPORTUNITIES The Trans Mountain pipeline was expanded last year, doubling its capacity from 890,000.0 barrels per day to 8.900.000 barrels. This opened up new markets for Canadian oil on the U.S. West Coast as well as in Asia. China is the largest buyer of Canadian crude oil shipped through the Trans Mountain pipeline. The U.S. West Coast follows closely behind. South Korea, which has been increasing its purchases recently, is now in third place, with Japan, India and Singapore also buying cargoes occasionally. According to Kpler's ship tracking data, Japan's Eneos Holdings has purchased a 250,000 barrel cargo in the past year, and a 550,000 barrel cargo so far this season. Trans Mountain's operator is also looking at a number of projects that will increase the system's capability by 200,000-300,000 barrels per day. Alberta's government wants to boost oil production in the province and is lobbying pipeline companies to entice a private company to build a crude oil export conduit along Canada's Northwest coast. Canada will export an average of 4.2 millions bpd in 2024. This is about 80% its total production. (Reporting from Amanda Stephenson and Arathy Sommesekhar, in Calgary; Additional reporting from Jekaterina Globkova in Tokyo. Editing by Matthew Lewis.)
South Korea visa waiver will boost travel, but not Chinese airline profit
Analysts said that South Korea's decision granting visa-free entry for Chinese tour groups would boost China's low outbound travel numbers, but not enough to improve the bottom line of struggling Chinese Airlines.
South Korea is the third most popular destination for Chinese tourists, after Japan and Thailand. However, overall outbound travel remains below the pre-pandemic level.
As Seoul opens a temporary airport, airlines are hoping to increase their numbers.
Visa waivers for Chinese passport holders
The scheme is set to run from the end of September, right before China's National Day week long holiday, to the end June of next year. This follows a decision made by Beijing in November last year to grant visa-free entry to South Koreans as well as foreign visitors.
Flight Master, a provider of aviation data, reports that the flight capacity between China and South Korea is now 105% higher than it was before the pandemic. This is more than China's total international capacity which stands at only 93%.
Analysts say that while visa waivers could increase passenger numbers, airline profitability may remain under pressure because of intensifying competition which is dampening ticket price.
The three largest state-owned carriers have reported even greater losses in the first quarter, adding to their cumulative losses of 206.3 billion Yuan ($28.9billion) over the past five years.
China Southern Airlines (owned by the state), Air China and China Eastern Airlines will all report their first-half results later this week.
Li Hanming is an independent aviation analyst based in the United States. He said that due to the short distance between China and Korea, routes are already oversupplied, and fares are very low.
The majority of travellers from higher-tiered cities already have their long-term...visa, so group tours are more important in lower-tiered cities. However, these passengers will not pay premium prices because they're price-sensitive.
Investors are likely to be more concerned about the financial health and stability of Chinese airlines if margins remain weak. These airlines have been heavily affected by the US-China trade war.
Li said, "I do not expect these challenges to be alleviated for the three largest airlines in the second part of the year."
Trip.com Group data shows that top-tier cities such as Shanghai, Beijing and Hangzhou are the top 10 source markets for travel from mainland China to South Korea.
Some experts warn that an increase in South Korea travel demand could be a temporary bump.
Su Shu, the founder of Moment Travel in Chengdu, described the effect on the country's economy as "a blip, followed by fading". Singapore is the only developed nation to date to grant visa-free entry to Chinese passport holders.
South Korea is not a destination for tourists, but rather one that's "close and affordable". She said that repeat visitors were rare.
(source: Reuters)