Month: November 2017

Donald Trump says Japan could shoot missiles from North Korea ‘out of the sky’

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Japan could shoot down North Korean missiles with U.S. military technology, President Donald Trump has said.

Trump said Japanese Prime Minister Shinzo Abe would be well-equipped for an attack from North Korea after buying equipment from the U.S.

“He will shoot them out of the sky when he completes the purchase of lots of additional military equipment from the United States,” Trump told a press conference Monday.

“He will easily shoot them out of the sky, just like we shot something out of the sky the other day in Saudi Arabia, as you saw.”

Trump was referring to a missile fired by Yemen, which was reportedly intercepted by Saudi Arabia over the weekend.

The president referred to that particular missile as “a needle in the sky,” and said that the U.S. makes “the best military equipment by far.”

He added that the purchasing of military equipment would bring both employment to the U.S. and safety to Japan.

“It’s a lot of jobs for us, and a lot of safety for Japan, and other countries that are likewise purchasing military equipment from us, that frankly a year ago or two years ago were not.”

Abe: ‘If it is necessary, of course we will do that’

Abe confirmed that Japan was planning to purchase military equipment from the U.S.

Abe added that the country would be prepared to shoot down a North Korean missile, if necessary, as part of its “legal cooperation” with the U.S.

“For the intercepting and shooting down, if it is necessary, of course we will do that,” Abe said.

In August, a North Korean missile was flown over Japan. The rogue state has been hit with additional sanctions, in an effort to clamp down on its aggressive activities.

Trump is visiting Asia for a landmark tour from November 5 to 14, and will travel to South Korea, China, Vietnam and the Philippines next.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

28-year-old’s company makes millions buying from Walmart and selling on Amazon

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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It seems too easy to be true that you could make millions by raiding the clearance aisle at your local Walmart or Target and then selling your haul on Amazon. But that’s exactly what 28-year-old Ryan Grant is doing.

Only four years after quitting his accounting job in Minneapolis, Minn., to flip purchases full-time, his business is making well into the six figures in profits per year.

“Pretty early on I realized I wasn’t in the career path that I wanted to be on,” he tells CNBC Make It. “That experience really had me looking for other options and I was starting to explore ways that I could basically leave that job and have my own schedule and be on my own time.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Asian shares edge lower as Trump’s Asia tour gets rolling; Cathay falls 4.1%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Most major Asian indexes edged down on Monday as investors digested earnings reports and President Donald Trump’s tour of the region got underway.

US stocks had closed higher on Friday despite a mixed jobs report for October as markets focused on strong earnings.

Markets on the move

Japan’s Nikkei 225 rose 0.26 percent as markets re-opened for trade after a long weekend. Oil stocks and most automakers notched gains except for Mazda Motor, which declined 2.78 percent on a poorer-than-expected quarterly profit.

Minutes from the Bank of Japan released Monday showed most policymakers thought the central bank should keep its current policy guidelines, Reuters reported.

Across the Korean Strait, the Kospi came under pressure. The index declined 0.57 percent as a fall in blue-chip tech stocks weighed on the broader market: Samsung Electronics erased 1.1 percent and SK Hynix slid 0.95 percent. Cosmetics and oil stocks, however, notched gains.

Down Under, the S&P/ASX was off 0.14 percent, with gains in energy and utilities stocks offset by losses in the heavily-weighted financials sub-index.

Australia’s Westpac announced on Monday that its cash earnings rose 3 percent to 8.06 billion Australian dollars (USD 6.17 billion) for the year ending on Sept. 30. That was below the 4 percent rise forecast in a Reuters poll. Meanwhile, statutory net profit for the period rose 7 percent to AUSD 7.99 billion (USD 6.11 billion). Westpac shares lagged other banking stocks to fall 2.4 percent.

Hong Kong’s Hang Seng Index fell 1.05 percent in early trade. Mainland markets fared slightly better, recording more moderate losses. The Shanghai Composite was off 0.22 percent and the Shenzhen Composite shed 0.106 percent.

Asian corporates on Monday’s earnings calendar included Sumitomo and Mitsubishi.

US tocks closed at record levels on Friday, with Apple shares jumping in the session following its earnings beat. The Nasdaq composite surged 0.74 percent, or 49.49 points, to close at a record 6,764.44 on those results.

The lead up

Data on Friday showed that a total 261,000 jobs were created in the US in October, significantly below the 310,000 figure expected. The unemployment rate for the period, however, came in at 4.1 percent, a shade below the 4.2 percent forecast.

Elsewhere, several Saudi ministers and princes, including prominent investor Prince Alwaleed Bin Talal, were detained over the weekend as part of an anti-corruption probe in the country. Saudi Arabia’s stock market initially fell on Sunday in reaction, but had edged higher by the end of the session.

Also in focus in the region was Trump’s tour of Asia, with Japan the first of the five nations on the itinerary. On his arrival in Japan, Trump warned that “no dictator” ought to “ever underestimate American resolve.” The president will also visit South Korea, China, Vietnam and Philippines during his trip.
Corporate news

In other news, merger talks between telcos Sprint and T-Mobile have ceased, the companies announced on Saturday. Japan’s SoftBank, the parent of Sprint, is due to report earnings on Monday. SoftBank stock was down 2.15 percent in early trade.

Qatar Airways announced it would be buying around 9.61 percent of Cathay Pacific Airways. Kingboard Chemical said in a filing on the Hong Kong Exchange that it would be disposing of those shares for consideration of 5.16 billion Hong Kong dollars (USD 661 million). Cathay shares fell 4.09 percent and Kingboard Chemical was up 1.04 percent.

Elsewhere, DBS Bank said Monday its third-quarter net profit came it at 822 million Singapore dollars (USD 602 million), well below the SUSD 1.13 billion forecast in a Thomson Reuters I/B/E/S poll. The bank also said its exposure to the oil and gas support services sector stood at SUSD 5.3 billion (USD 3.8 billion). DBS shares were off 0.7 percent.

Watching the dollar

The dollar broadly extended gains made in the last session following Friday’s stateside data releases. The dollar index stood at 94.979 at 9:48 a.m. HK/SIN after touching as high at 95.015 on Friday.

Against the yen, the greenback firmed to trade at 114.60, above Friday’s close of 114.06.

The commodities trade

Oil prices touched their highest levels in more than two years as markets kept an eye on the developments in Saudi Arabia. Brent crude was up 0.35 percent at USD 62.29 a barrel and US crude futures tacked on 0.29 percent to trade at USD 55.80.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Jerome Powell to succeed Janet Yellen as US Federal Reserve Chairman

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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US President Donald Trump nominated Jerome Powell to run the Federal Reserve once current Chair Janet Yellen’s term expires, in a move widely expected and one unlikely to disturb the roaring stock market.

Trump made the announcement during an afternoon ceremony in the Rose Garden.

The move follows an extended period of speculation over who would be named to head the central bank, whose aggressive policies have been considered central to a climate of low interest rates and booming asset prices.

ALSO READ: Meet Jerome Powell, the richest US Fed Governor

“Today is an important milestone on the path to restoring economic opportunity to the American people,” Trump said with Powell standing to his right. The president said the Fed requires “strong, sound and steady leadership” and Powell “will provide exactly that type of leadership.”

“He’s strong, he’s committed and he’s smart, and if he is confirmed by the Senate, Jay will put his considerable talents and experience to work leading our nation’s independent central bank,” Trump added.

Powell led a diverse field of potential nominees that included former Governor Kevin Warsh, Stanford economist John Taylor, chief Trump economic advisor Gary Cohn, and Yellen herself.

“I’m both honored and humbled by this opportunity to serve our great country,” Powell said.

“If I am confirmed by the Senate, I will do everything within my power to achieve our congressional assigned goals of stable prices and maximum employment,” he added.

Trump’s relationship with Yellen evolved; during the 2016 presidential campaign he said the Fed chief should be “ashamed” of the way she has run the Fed, arguing that Yellen kept policy loose for political reasons to boost the fortunes of former President Barack Obama.

Since taking office, though, his views changes and he offered warm words for her Thursday despite deciding to replace Yellen and make her the briefest-serving Fed chair since G. William Miller served from 1978-79.

“I think the president has made a spectacular choice, and I’m really supportive of what the president is doing,” Cohn told the Economic Club of Washington, D.C. earlier in the day. “I’m really supportive of the president.”

Powell was named to fill an unexpired term in 2012 that won’t end until 2028. He is viewed as a convenient choice, someone who likely will continue the programs of the Yellen Fed but allow Trump a chance to put his own stamp on the central bank.

The Fed is in the midst of normalising the historically accommodative monetary policy it had begun to help pull the US from the throes of the financial crisis and the Great Recession.

Under Yellen, the Fed has hiked interest rates four times and is expected to approve another increase in December. In addition, it is unwinding its $4.5 trillion balance sheet, which primarily consists of bonds the Fed purchased in an effort to drive down mortgage rates and push investors to risk assets like stocks and corporate bonds.

Powell has been part of the Fed’s voting consensus since taking his seat, not once veering from the majority’s position.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Everything you need to know about Donald Trump’s upcoming trip to Asia

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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President Donald Trump will commence a five-nation Asia tour on Friday to try to reaffirm American leadership in a region beset by tensions from a nuclear-armed North Korea and an expansionist China.

From November 5 to November 14, the 71-year-old leader will stop in Japan, South Korea, China, Vietnam and the Philippines in his first visit to the region since taking office. It’s the longest trip to Asia by any sitting U.S. president this millennium.

In addition to state visits with each nation’s respective leaders, Trump will also be attending the Asia-Pacific Economic Cooperation, or APEC, forum and the U.S.-ASEAN Summit. Headlining his overall agenda will be the creation of a united front against Pyongyang’s nuclear threats as well as reassuring regional leaders of America’s defensive capabilities and trade cooperation.

Trump’s foreign policy agenda is rooted in his ‘America First’ program, explained Anne-Marie Slaughter, a former director of policy planning at the U.S. State Department who’s now president and CEO of think tank New America.

As a result, he’s expected to be assertive and pushy in demanding the best deals and concessions Washington can get in Asia, Slaughter told CNBC on the sidelines of the Barclays Asia Forum on Thursday.

“But the question is how well that works with the diplomacy he needs to engage in Beijing, Korea and Japan around subjects like North Korea,” she warned.

For Asian governments, the visit is a chance to address longstanding doubts over America’s interest in the region.

Trump’s actions, which include withdrawing the U.S. from the Trans-Pacific Partnership agreement and talking up trade deficits, have weakened American credibility and “shaken allies’ belief in U.S. staying power,” David B. Shear, former assistant secretary of defense for Asian and Pacific security affairs, wrote in a recent note.

An ongoing FBI investigation into Trump’s associates could also hurt the president’s image among Asian head of states.

Trump “is not a strong president at the moment,” said Slaughter. That’s in contrast to Japanese Prime Minister Shinzo Abe and Chinese President Xi Jinping, who recently secured strong political mandates at home: Abe’s party won recent parliamentary elections while Xi was enshrined in China’s Communist Party constitution. Trump “has had a cloud of scandals so I do think other leaders will factor that in and recognize that he’s not in a strong political position that allows him to impose terms,” Slaughter noted.

Amid those concerns, here’s what to expect from the president’s milestone Asia tour.

Japan

Trump will arrive in Tokyo on Nov. 5 for a two-day stay. In addition to bilateral talks with Abe and a potential round of golf, Trump is due to meet families of Japanese citizens abducted by the North Korean regime.

The latter event will soften Trump’s image in Japan and simultaneously bolster Abe’s position as a leader who can talk to Washington on issues important to Japanese citizens, according to Stephen Nagy, associate professor at Tokyo- based International Christian University.

Discussions on joint cooperation in the Indo-Pacific region to balance China’s military footprint may also be on tap.

Nagy expects a strong statement on Washington’s commitment to defending Japanese territories, including an East China Sea island cluster that’s claimed by both Tokyo and Beijing. That will send “an explicit message” to Xi, Nagy said.

Abe, who wants the U.S. to return to the TPP deal, isn’t expected to bring up the pact for fear of ruining his carefully cultivated relationship with Trump, but the U.S. leader will likely push for a bilateral free trade deal, according to Nagy.

South Korea

On November 7, Trump meets South Korean President Moon Jae-in and North Korea is likely dominate the one-day visit. The two leaders espouse varied views on reigning in the rogue state, but both are expected to stay united on issues such as joint defense networks.

In addition to a state dinner, Trump will also visit Camp Humphreys, home to one of the U.S. army’s busiest overseas airfields, and a national cemetery.

China

Ties between Washington and Beijing remain complex: The White House regularly criticizes Xi’s government on market access and aggressive behavior in the South China Sea but still asks Beijing for help on containing Pyongyang.

Both leaders have different objectives for the Nov. 8-10 visit, Ryan Hass, a foreign policy expert at think tank the Brookings Institution, said in a recent note.

“Xi’s goal will be for Trump to leave Beijing satisfied that he was accorded due respect and convinced that he should continue pursuing a constructive, results-based approach to China in order to achieve the goals he seeks — more balanced trade and better cooperation on North Korea.”

The U.S. leader, meanwhile, will seek to convince Xi that Beijing must moderate its behavior to preserve against imbalances in the bilateral relationship, especially when it comes to the treatment of U.S. firms in China.

“Unlike previous state visits where deliverables were negotiated for months and used as yardsticks of the success of the visit, Trump would like the lasting legacy of this summit to be his success in compelling Xi to adopt an attitudinal shift in his approach to the relationship,” Hass said.

Vietnam

On November 10, Trump arrives in the Vietnamese city of Da Nang for the APEC summit, where he’ll deliver a speech and potentially meet Russian President Vladimir Putin on the sidelines.

A day later, Trump will meet with senior Vietnamese leaders in Hanoi, including Prime Minister Nguyen Xuan Phuc. Vietnam is Southeast Asia’s largest exporter to the U.S. and talks will likely focus on expanded trade opportunities.

Critics, however, have lashed out at Washington for visiting a country with a serious human rights record.

Philippines

In Manila on November 12, Trump will participate in a gala dinner for the 50th anniversary of the Association of Southeast Asian Nations, or ASEAN.

The next day, Trump will attend the U.S.-ASEAN summit and hold talks with President Rodrigo Duterte. That’s also attracted international backlash given Duterte’s controversial drug war, which has killed thousands. But the White House has defended Trump’s visit, saying Duterte’s cooperation is needed to counter North Korea.

However, the U.S. president will be skipping the Nov. 13-14 East Asia Summit in the Philippines — a move that many believe signals a lack of interest in the broader ASEAN bloc.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

US shouldn’t label India a currency manipulator ‘even if it’s thinking of it,’ says former RBI governor Raghuram Rajan

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The US Treasury should not label India a currency manipulator, the country’s former top central banker said on Thursday.

“I don’t suspect the Treasury will do that, but it shouldn’t, even if it’s thinking of it,” Raghuram Rajan, a former governor of the Reserve Bank of India, said on the sidelines of the Barclays Asia Forum.

The comments from Rajan, currently a professor at University of Chicago Booth School of Business, came after the U.S. Treasury said it would be “closely monitoring” India’s foreign exchangeand macroeconomic policies in its latest report on its trading partners’ exchange rate policies.

Although India was not added to the Treasury’s official monitoring list, the country was flagged for the uptick in its net foreign exchange purchases in the first half of 2017. That figure had increased to $42 billion, or 1.8 percent of India’s GDP, according to the report.

The three criteria used by the Treasury to determine “unfair” currency practices are:

A bilateral trade surplus with the U.S. amounting to at least $20 billion
A current account surplus at least 3 percent of the country’s gross domestic product
Net purchases of foreign currency amounting to at least 2 percent of the economy’s GDP over a 12-month period
While India’s trade surplus with the U.S. stood at $23 billion in the year ending in June, it did not meet the other two criteria.

Rajan pointed out that India ran a current account deficit “which could get larger if the price of oil rises.” India’s current account deficit in the quarter ending in June stood at $14.3 billion, or 2.4 percent of its GDP, according to the RBI.

As for the increase in foreign exchange purchases, Rajan explained that India needed its own foreign currency reserves in the event of capital outflows.

“India needs to build reserves in order to protect against outflows. We can’t keep running to the IMF for help as a large country and politically, it’s very difficult … So reserves should be seen as a macro prudential tool,” he said.

Rajan added that it was difficult to label a country a currency manipulator simply on the basis of one metric, especially given how “nobody could accuse India” of holding the rupee’s exchange rate at a “grossly undervalued level.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow