Archives of “July 2019” month

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With election over, US wants Abe to deliver on Iran and trade

  
Analysis, Politics
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Having scored a sound victory in the upper house election Sunday, Japanese Prime Minister Shinzo Abe is back to confronting thorny diplomatic issues as Washington presses for tangible results on global security and trade.

U.S. President Donald Trump had signaled that he would wait until the Japanese election is over to push for a trade deal. Now Washington is certain to step up pressure to put together an agreement palatable to U.S. farmers ahead of the 2020 presidential election. Japan is increasingly alarmed by the U.S. bringing Trump style deal-making to diplomacy and trade.

John Bolton, the U.S. national security adviser, was in the Japanese capital Monday, seeking Tokyo’s support amid rising tensions with Iran. Bolton told Japanese Defense Minister Takeshi Iwaya that their two countries “are at an extremely critical juncture to strengthen the bilateral alliance.” He likely called on Tokyo to participate in a coalition that would safeguard ships passing through the Strait of Hormuz.

Iran’s Revolutionary Guard seized a British oil tanker in the strait on Friday. A Japanese-owned oil tanker also suffered an attack in the area in June.

Discussions about the future of the Japan-U.S. alliance will continue over the next several days and weeks, Bolton told reporters after his meeting with Iwaya, adding that he was very “optimistic” about the outcome.

Abe told reporters on Monday that he first wanted to focus on what Japan could do to ease tensions in the Middle East. “The peace and stability of the Middle East are critically important for Japan’s energy security,” Abe said. (more…)

North Korean media announcement on new “strategic” submarine

  
Analysis, Politics

NK media, KCNA, report on

  • submarine designed and built to be capable of fully implementing the military strategic intention of the Party

“Strategic’ is being read as a euphemism for nuclear missile capable. Its the first time NK has used the word in miliarty related press reports for more than a year, Pretty much highlights the end of any pretence of “denuclearization” .

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Not much yen response – its been flat for hours and just lost a few points in past minutes.

Trump promises tech CEOs quick decision on supplying Huawei

  
  Analysis
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Donald Trump has promised major US companies his administration will
process their applications to supply Huawei quickly.

The president on Monday met with chief executives from seven large technology
companies, including microchip makers Qualcomm, Broadcom and
Micron, as well as Google, which sells its Android operating software
to Huawei for use on its smartphones.

According to the White House, the chief executives asked the president
to swiftly process their applications to export to Huawei, following
Mr Trump’s announcement that a ban on selling to the Chinese company
would be relaxed.

A spokesperson for Mr Trump said: “The CEOs expressed strong support
of the President’s policies, including national security restrictions
on United States telecom equipment purchases and sales to Huawei. They
requested timely licensing decisions from the Department of Commerce,
and the President agreed.”

Companies have been seeking clarity on US policy since Mr Trump
said the ban he previously announced would be eased, following a
meeting with Xi Jinping, the Chinese president.

Meanwhile the Trump administration has been urging companies to submit
applications since that decision, according to people briefed on the
situation, in the hope of pleasing Beijing amid US-China trade talks.

US President Trump says Congress have reached a deal on debt limit suspension

  
  Analysis
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As if there was ever going to be any doubt the US would once again add to its gargantuan deficit

Trump says a deal has been reached between Congress and the White house
  • debt limit ratcheted higher
  • for the coming two years
For those with a stick up their you know what – this is not a real photo, K?
US once again add to its gargantuan deficit

Wall Street ends higher as tech and oil stocks rally

  
Analysis, US Market
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Technology stocks led the advance for the broader US market as investors kept an eye on the strained geopolitics of the Gulf.

The S&P 500 finished 0.3 per cent higher on Monday, with an afternoon rally at one point putting up as much as 0.5 per cent. That also saw the Dow Jones Industrial Average turn positive and close fractionally higher, but it was tech names that led the way, with the Nasdaq Composite rising 0.7 per cent.

Brent crude, the international oil marker, was up 1.5 per cent to $63.43 a barrel, although that left it off earlier highs that took it up as much as 2 per cent after Iran seized a British-flagged tanker in the Gulf on Friday. Furthermore, Libyan output was interrupted after an unidentified group sabotaged production at the country’s largest field, according to its state oil company.

The S&P 500 energy sector was up 0.5 per cent, lagging only tech, as major producers including ExxonMobil, Chevron and ConocoPhillips turned positive during the afternoon session. Halliburton topped the leaderboard with a 9.2 per cent advance following an earnings beat.

European energy stocks fared better earlier on Monday, with a gain of 0.5 per cent for the Stoxx index tracking the sector standing out against a 0.1 per cent rise for the Europe-wide Stoxx 600. London’s FTSE 100 rose 0.1 per cent and Frankfurt’s Xetra Dax 30 was up 0.2 per cent. BP was among the top performers on the main UK index, with the oil major’s shares rising 1 per cent.

Bets that the Fed will aggressively cut rates at its policy meeting this month were being pared back. Bloomberg data showed that under 20 per cent of economists polled were forecasting a 50 basis point cut, down from about 40 per cent late last week. That followed confusion on Friday after the New York Fed clarified that an ultra-dovish speech from John Williams, its president, should not be seen as a guide to future policy.

Investor caution towards geopolitical issues in the Gulf, as well as debate over the prospect for monetary easing from the Federal Reserve, on Friday pushed gold to a six-year high. On Monday afternoon the metal was flat at $1,424.49 an ounce.

Trump on Iran says he is going to sit back and wait

  
Analysis, Politics
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Trump on Iran

  • Trump says he is going to sit back and wait, we’ll see what happens
  • He says it’s getting harder for him to make a deal with Iran, says it could go either way very easily
Obviously they’re not in a rush to war but that doesn’t mean they’re not putting some pieces in place. You don’t pre-announce any attack.
Separately:
  • Working on trade deals with Chinese President Xi
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