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The price of rice doubled in Japan in the 12 months to May, data showed Friday, as an acceleration in inflation piled fresh pressure on Prime Minister Shigeru Ishiba ahead of key elections next month.Polls for parliament’s upper house are crucial for Ishiba after public support for his administration tumbled to its lowest level since he took office in October, partly because of frustration over the cost of living.One of the main sources of anger has been the surging cost of the food staple, which has rocketed for months owing to shortages caused by a variety of reasons including supply chain snarls.The price of the grain rocketed 101 percent year-on-year in May, having jumped 98.4 percent in April and more than 92.5 percent in March.That helped push core inflation, which excludes volatile fresh food prices, to a forecast-topping 3.7 percent — its highest level since January 2023 — and up from 3.5 percent in April.The rice crisis has led the government to take the rare step of releasing its emergency stockpile since February, which it usually only ever did during disasters.But rice is not the only thing pushing inflation up: electricity bills jumped 11.3 percent in May, while gas fees rose 5.4 percent, according to Friday’s data.Excluding energy and fresh food, consumer prices rose 3.3 percent, compared with April’s 3.0 percent.”Since I’m a temp worker, my salaries have remained stagnant for years, and I see no sign of change in the years ahead,” Chika Ohara, 52, told AFP on a Tokyo street. “But prices are going up nonetheless and I feel the impact,” she said.  – Cash handouts -To help households combat the cost of living, Ishiba has pledged cash handouts of 20,000 yen ($139) for every citizen, and twice as much for children, ahead of the election.The 68-year-old leader’s coalition was deprived of a majority in the powerful lower house in October as voters vented their anger at rising prices and political scandals.It was the worst election result in 15 years for the Liberal Democratic Party (LDP), which has governed Japan almost continuously since 1955.The Bank of Japan has been tightening monetary policy since last year as inflation crept up but worries about the impact of US tariffs on the world’s number four economy has forced it to take a slower approach. Economists predicted a growth slowdown ahead.Earlier this week it kept interest rates unchanged and said it would taper its purchase of government bonds at a slower pace.”Policy flip-flops and delayed pass-through from producers to consumers mean inflation will slow only gradually in the coming months,” said Stefan Angrick of Moody’s Analytics.”This will keep a sustained pickup in real wages out of reach, and with it a meaningful uptick in consumption.”Factors behind the rice shortages include an intensely hot and dry summer two years ago that damaged harvests nationwide.Since then some traders have been hoarding rice in a bid to boost their profits down the line, experts say.The issue was made worse by panic-buying last year prompted by a government warning about a potential “megaquake” that did not strike.Intensifying fighting between Iran and Israel was also adding upward pressure on energy prices, posing a further risk to the Japanese economy.

Europe’s ambition to be a world player in decarbonised transportation arguably depends on sourcing lithium abroad, especially in South America.Even the bloc’s broader energy security and climate goals could depend on securing a steady supply of the key mineral, used in batteries and other clean energy supply chains.But Europe has run into a trio of obstacles: lack of money, double-edged regulations and competition from China, analysts told AFP.China has a major head start.It currently produces more than three-quarters of batteries sold worldwide, refines 70 percent of raw lithium and is the world’s third-largest extractor behind Australia and Chile, according to 2024 data from the United States Geological Survey.To gain a foothold, Europe has developed a regulatory framework that emphasises environmental preservation, quality job creation and cooperation with local communities. It has also signed bilateral agreements with about 15 countries, including Chile and Argentina, the world’s fifth-largest lithium producer.But too often it fails to deliver when it comes to investment, say experts.”I see a lot of memoranda of understanding, but there is a lack of action,” Julia Poliscanova, director of electric vehicles at the Transport and Environment (T&E) think tank, told AFP.”More than once, on the day that we signed another MoU, the Chinese were buying an entire mine in the same country.”The investment gap is huge: China spent $6 billion on lithium projects abroad from 2020 to 2023, while Europe barely coughed up a billion dollars over the same period, according to data compiled by T&E.- Lagging investment -At the same time, the bottleneck in supply has tightened: last year saw a 30 percent increase in global demand for lithium, according to a recent report from the International Energy Agency (IEA).”To secure the supply of raw materials, China is actively investing in mines abroad through state-owned companies with political support from the government,” the IEA noted.China’s Belt and Road Initiative funnelled $21.4 billion into mining beyond its shores in 2024, according to the report.Europe, meanwhile, is “lagging behind in investment levels in these areas”, said Sebastian Galarza, founder of the Centre for Sustainable Mobility in Santiago, Chile.”The lack of a clear path for developing Europe’s battery and mining industries means that gap will be filled by other actors.”In Africa, for example, Chinese demand has propelled Zimbabwe to become the fourth-largest lithium producer in the world.”The Chinese let their money do the talking,” said Theo Acheampong, an analyst at the European Council on Foreign Relations.By 2035, all new cars and vans sold in the European Union must produce zero carbon emissions, and EU leaders and industry would like as much as possible of that market share to be sourced locally.Last year, just over 20 percent of new vehicles sold in the bloc were electric. “Currently, only four percent of Chile’s lithium goes to Europe,” noted Stefan Debruyne, director of external affairs at Chilean private mining company SQM. “The EU has every opportunity to increase its share of the battery industry.”- Shifting supply chains -But Europe’s plans to build dozens of battery factories have been hampered by fluctuating consumer demand and competition from Japan (Panasonic), South Korea (LG Energy Solution, Samsung) and, above all, China (CATL, BYD).The key to locking down long-term lithium supply is closer ties in the so-called “lithium triangle” formed by Chile, Argentina and Bolivia, which account for nearly half of the world’s reserves, analysts say. To encourage cooperation with these countries, European actors have proposed development pathways that would help establish electric battery production in Latin America.Draft EU regulations would allow Latin America to “reconcile local development with the export of these raw materials, and not fall into a purely extractive cycle”, said Juan Vazquez, deputy head for Latin America and the Caribbean at the OECD Development Centre.But it is still unclear whether helping exporting countries develop complete supply chains makes economic sense, or will ultimately tilt in Europe’s favour. “What interest do you have as a company in setting up in Chile to produce cathodes, batteries or more sophisticated materials if you don’t have a local or regional market to supply?” said Galarza.”Why not just take the lithium, refine it and do everything in China and send the battery back to us?”Pointing to the automotive tradition in Mexico, Brazil and Argentina, Galarza suggested an answer. “We must push quickly towards the electrification of transport in the region so we can share in the benefits of the energy transition,” he argued.But the road ahead looks long. Electric vehicles were only two percent of new car sales in Mexico and Chile last year, six percent in Brazil and seven percent in Colombia, according to the IEA.The small nation of Costa Rica stood out as the only nation in the region where EVs hit double digits, at 15 percent of new car sales.

President Donald Trump announced Thursday he had given social media platform TikTok another 90 days to find a non-Chinese buyer or be banned in the United States.”I’ve just signed the Executive Order extending the Deadline for the TikTok closing for 90 days (September 17, 2025),” Trump posted on his Truth Social platform, putting off the ban for the third time. A federal law requiring TikTok’s sale or ban on national security grounds was due to take effect the day before Trump’s January inauguration.The Republican, whose 2024 election campaign relied heavily on social media, has previously said he is fond of the video-sharing app.”I have a little warm spot in my heart for TikTok,” Trump said in an NBC News interview in early May. “If it needs an extension, I would be willing to give it an extension.”TikTok on Thursday welcomed Trump’s decision.”We are grateful for President Trump’s leadership and support in ensuring that TikTok continues to be available for more than 170 million American users,” the platform said in a statement.- Digital Cold War? -Motivated by a belief in Washington that TikTok is controlled by the Chinese government, the ban took effect on January 19, one day before Trump’s inauguration, with ByteDance having made no attempt to find a suitor.TikTok “has become a symbol of the US-China tech rivalry; a flashpoint in the new Cold War for digital control,” said Shweta Singh, an assistant professor of information systems at Warwick Business School in Britain.Trump had long supported a ban or divestment, but reversed his position and vowed to defend the platform — which boasts almost two billion global users — after coming to believe it helped him win young voters’ support in the November election.The president announced an initial 75-day delay of the ban upon taking office. A second extension pushed the deadline to June 19. He said in May that a group of purchasers was ready to pay TikTok owner ByteDance “a lot of money” for the video-clip-sharing sensation’s US operations.Trump knows that TikTok is “wildly popular” in the United States, White House spokeswoman Karoline Leavitt told reporters Thursday, when asked about the latest extension. “He also wants to protect Americans’ data and privacy concerns on this app, and he believes we can do both things at the same time.” The president is “just not motivated to do anything about TikTok,” said independent analyst Rob Enderle. “Unless they get on his bad side, TikTok is probably going to be in pretty good shape.”- Tariff turmoil -Trump said in April that China would have agreed to a deal on the sale of TikTok if it were not for a dispute over his tariffs on Beijing.ByteDance has confirmed talks with the US government, saying key matters needed to be resolved and that any deal would be “subject to approval under Chinese law.”Possible solutions reportedly include seeing existing US investors in ByteDance roll over their stakes into a new independent global TikTok company.Additional US investors, including Oracle and private equity firm Blackstone, would be brought on to reduce ByteDance’s share in the new TikTok.Much of TikTok’s US activity is already housed on Oracle servers, and the company’s chairman, Larry Ellison, is a longtime Trump ally.Uncertainty remains, particularly over what would happen to TikTok’s valuable algorithm.”TikTok without its algorithm is like Harry Potter without his wand — it’s simply not as powerful,” said Kelsey Chickering, principal analyst at Forrester.Despite the turmoil, TikTok has been continuing with business as usual.The platform on Monday introduced a new “Symphony” suite of generative artificial intelligence tools for advertisers to turn words or photos into video snippets for the platform.

Stock markets mostly fell Thursday while oil prices rose as the Israel-Iran conflict added to fears over a renewed spike in inflation that could dent economic growth in major countries.Investors had already taken a cautious stance after the US Federal Reserve kept its interest rates unchanged and warned Wednesday that President Donald Trump’s trade war could reignite inflation and dampen economic growth.”Equity markets were in the red across Europe and most of Asia,” noted Russ Mould, investment director at AJ Bell, adding that investors were “spooked” by the escalating Israel-Iran conflict.”Oil prices have shot up in recent days and any disruptions to Middle East supplies could put them even higher and stoke inflation,” he said.After gaining more than one percent in Asian trading hours, crude futures fell back but remained higher compared with levels on Wednesday.As fears grow of direct US participation in the strikes on Iran, analysts said there was a risk that Tehran could shut the Strait of Hormuz, a key shipping lane through which an estimated fifth of global oil supply flows.”We don’t see it as a likely scenario at this time, but… I think everybody should be watching,” American Petroleum Institute president Mike Sommers told Bloomberg.The concerns over potential supply constraints boosted share prices of major energy companies Thursday.French oil and gas giant TotalEnergies topped the Paris CAC 40 blue-chip index, closing with a gain of 2.1 percent, while British energy group BP advanced 1.4 percent in London.US stock and bond markets are closed Thursday for the Juneteenth holiday, which commemorates the end of slavery in the United States in 1865.- ‘Highly unpredictable’ -In Europe, several central banks took interest rate decisions on Thursday, warning that the risk of slowing growth was rising even as inflation slows.The Swiss National Bank cut rates by a quarter point to zero percent, a move aimed at taming the Swiss franc, a haven that has soared against the dollar since Trump launched his tariff onslaught in April.For many investors that raised the prospect of a return to negative interest rates in Switzerland, to lower the franc but also encourage investment and spending to avert an economic slump.Despite the rate cut, the franc rose slightly against the dollar after the rate cut.”There are also significant downside risks to inflation from trade tensions as well as heightened geopolitical uncertainty, which could push up the value of the franc further,” said Adrian Prettejohn, an economist at Capital Economics.Norway’s central bank meanwhile made an unexpected cut to its benchmark rate, saying economic uncertainty was “greater than normal” because of escalating conflicts and trade tensions.And as widely expected, the Bank of England held its benchmark rate steady at 4.25 percent but its governor Andrew Bailey indicated that further cuts were coming as the UK economy slows.”Interest rates remain on a gradual downward path,” Bailey said, adding that “the world is highly unpredictable”.The dollar traded mixed against main rivals Thursday after the Fed kept rates unchanged for a fourth consecutive meeting despite Trump’s pressure on the central bank to lower borrowing costs.It cut its 2025 forecast for US economic growth and raised inflation and unemployment expectations, in its first updated projections since Trump unveiled in April his levies on imports.Fed chief Jerome Powell called the economy “still solid” but warned that “increases in tariffs this year are likely to push up prices and weigh on economic activity”.Hong Kong led stock market losses in Asia, closing down two percent, while Tokyo shed one percent.Bangkok retreated as a political crisis involving Thailand’s Prime Minister Paetongtarn Shinawatra put her government on the brink of collapse.- Key figures at around 1550 GMT -London – FTSE 100: DOWN 0.6 percent at 8,791.80 points (close)Paris – CAC 40: DOWN 1.3 percent at 7,553.45 (close)Frankfurt – DAX: DOWN 1.1 percent at 23,057.38 (close)Tokyo – Nikkei 225: DOWN 1.0 percent at 38,488.34 (close)Hong Kong – Hang Seng Index: DOWN 2.0 percent at 23,237.74 (close)Shanghai – Composite: DOWN 0.8 percent at 3,362.11 (close)Brent North Sea Crude: UP 2.1 percent at $78.29 per barrelWest Texas Intermediate: UP 2.1 percent at $75.05 per barrelEuro/dollar: DOWN at $1.1463 from $1.1485 on WednesdayPound/dollar: UP at $1.3429 from $1.3420Dollar/yen: UP at 145.63 yen from 145.09 yenEuro/pound: DOWN at 85.36 pence from 85.55 pence

Air India’s Boeing plane was “well-maintained” before it crashed a week ago, killing all but one of 242 people on board, the airline said on Thursday.Indian authorities are yet to detail what caused the Boeing 787-8 Dreamliner to hurtle to the ground in the western city of Ahmedabad a week ago.At least 38 people were killed in the residential neighbourhood that the plane hit, causing such devastation that DNA analysts are still trying to identify dozens of the dead.As investigators attempt to retrieve data from the plane’s black boxes — the cockpit voice recorder and the flight data recorder — the airline said no problems were detected with the jet before the disaster.”The plane was well-maintained, with its last major check in June 2023,” Air India said in a statement.”Its right engine was overhauled in March 2025, and the left engine was inspected in April 2025. Both the aircraft and engines were regularly monitored, showing no issues before the flight,” it said.The London-bound jet burst into a fireball when it smashed down in Ahmedabad moments after takeoff.Initial checks on Air India’s Dreamliners since the crash “did not reveal any major safety concerns”, the country’s civil aviation regulator said on Tuesday.India’s aviation investigative unit said on Thursday the probe was “progressing steadily”.”Key recovery work, including site documentation and evidence collection, has been completed, and further analysis is now underway,” the Aircraft Accident Investigation Bureau said in a statement.- ‘Highly experienced pilot’ -Air India said there were 169 Indian passengers, 53 British, seven Portuguese and a Canadian on board the flight, as well as 12 crew members.The pilots were accomplished flyers, according to the airline.”The flight was led by Captain Sumeet Sabharwal, a highly experienced pilot and trainer with over 10,000 hours flying widebody aircraft,” it said.”First Officer Clive Kunder had over 3,400 hours of flying experience.”While investigators try to piece together what went wrong, many families of victims are still waiting for their loved ones to be identified.As of Thursday evening, 215 victims have been matched through DNA testing, all but nine of them passengers, according to the civil hospital’s medical superintendent Rakesh Joshi.The remains of around 15 of them have been transported by air, Joshi told journalists. Six people injured in the disaster remain in hospital, with one due to be discharged shortly while the others are in a stable condition.

Air India’s Boeing plane was “well-maintained” before it crashed a week ago, killing all but one of 242 people on board, the airline said Thursday.Indian authorities are yet to detail what caused the Boeing 787-8 Dreamliner to hurtle to the ground in the western city of Ahmedabad, where at least 38 people were also left dead.As investigators attempt to retrieve data from the plane’s black boxes — the cockpit voice recorder and the flight data recorder — the airline said that no problems were detected with the jet before the disaster.”The plane was well-maintained, with its last major check in June 2023,” Air India said in a statement.”Its right engine was overhauled in March 2025, and the left engine was inspected in April 2025. Both the aircraft and engines were regularly monitored, showing no issues before the flight,” the airline said.The London-bound jet burst into a fireball when it smashed into a residential area of Ahmedabad moments after takeoff.Initial checks since the crash on Air India’s Dreamliners “did not reveal any major safety concerns”, the country’s civil aviation regulator said Tuesday.India’s aviation investigative unit said Thursday the probe was “progressing steadily”.”Key recovery work, including site documentation and evidence collection, has been completed, and further analysis is now underway,” the Aircraft Accident Investigation Bureau said in a statement.Air India said there were 169 Indian passengers, 53 British, seven Portuguese and a Canadian on board the flight, as well as 12 crew members.The airline said Thursday the pilots were accomplished flyers. “The flight was led by Captain Sumeet Sabharwal, a highly experienced pilot and trainer with over 10,000 hours flying widebody aircraft,” it said.”First Officer Clive Kunder, had over 3,400 hours of flying experience.”While investigators try to piece together what went wrong, families of dozens of victims are still waiting for their loved ones to be identified.As of Thursday, 210 victims have been identified through DNA testing, state health minister Rushikesh Patel said.

Equities fell Thursday after the Federal Reserve warned Donald Trump’s trade war could reignite US inflation and dampen economic growth, while oil rose on Middle East concerns as investors awaited developments in the Israel-Iran conflict.While geopolitical tensions are the key focus for markets, traders eyed the US central bank’s latest meeting Wednesday as officials discussed monetary policy in light of the president’s tariff blitz.The Fed kept borrowing rates on hold, as expected, and said in a statement that “uncertainty about the economic outlook has diminished but remains elevated”.It also cut its economic growth forecast for this year and raised inflation and unemployment expectations, in its first updated projections since Trump unveiled his levies on most trading partners at the start of April.Boss Jerome Powell called the economy “still solid” but added that “increases in tariffs this year are likely to push up prices and weigh on economic activity”.He said the bank was “well-positioned to wait to learn more” before considering changes to rates. Still, the Fed’s so-called dot-plot chart predicted two cuts this year.”Ultimately, the cost of the tariff has to be paid and some of it will fall on the end consumer,” he added. “We know that’s coming and we just want to see a little bit of that before we make judgements prematurely.”The Fed’s decision drew the ire of Trump, who has repeatedly pressured the independent central bank for rate cuts. He wrote on his Truth Social platform that Powell was “the WORST” and a “real dummy, who’s costing America $Billions!”.Hours before the meeting, he had told reporters “We have a stupid person, frankly, at the Fed.””We have no inflation, we have only success, and I’d like to see interest rates get down,” he said at the White House. “Maybe I should go to the Fed. Am I allowed to appoint myself?”- ‘A heavy price’ -Tai Hui at JP Morgan Asset Management said: “The Fed’s assessment indicates that the economy is in good shape, aligning with current economic data.”However, trade policy, fiscal policy, and unintended consequences of policies from the Trump administration are contributing to market volatility in the second half of this year.”Hong Kong led share losses, falling two percent, while Tokyo shed one percent, with Bangkok also well down as a political crisis involving Thailand’s Prime Minister Paetongtarn Shinawatra put her government on the brink of collapse.Shanghai, Sydney, Singapore, Wellington, Taipei, Mumbai and Jakarta were also down with London, Paris and Frankfurt.The Fed comments compounded the already weak sentiment as Trump considers joining Israeli strikes against Iran.He indicated he was still looking into such a move and that Iran had reached out seeking negotiations, saying: “I may do it, I may not do it. I mean, nobody knows what I’m going to do.”Without providing more details, he added: “The next week is going to be very big.”Iran’s supreme leader Ayatollah Ali Khamenei earlier sounded a defiant note, rejecting Trump’s call for “unconditional surrender”.Crude prices rose Wednesday after fluctuating through the Asian day as traders tracked developments.Israel’s army said Thursday it had struck an “inactive nuclear reactor” in Iran overnight, while the Islamic republic’s Natanz nuclear site was targeted again.Meanwhile, Prime Minister Benjamin Netanyahu said Tehran would “pay a heavy price” after a missile hit a hospital in Israel’s south.Analysts said the main worry for traders was the possibility Tehran will shut a key shipping lane through which an estimated fifth of global oil supply flows.”We don’t see it as a likely scenario at this time, but given the precarious state that the Iran regime is in right now, I think everybody should be watching” the Strait of Hormuz, Mike Sommers, president of the American Petroleum Institute, told Bloomberg television in an interview.- Key figures at around 0810 GMT -Tokyo – Nikkei 225: DOWN 1.0 percent at 38,488.34 (close)Hong Kong – Hang Seng Index: DOWN 2.0 percent at 23,237.74 (close)Shanghai – Composite: DOWN 0.8 percent at 3,362.11 (close)London – FTSE 100: DOWN 0.5 percent at 8,801.86 West Texas Intermediate: UP 1.2 percent at $76.01 per barrelBrent North Sea Crude: UP 1.0 percent at $77.44 per barrelEuro/dollar: DOWN at $1.1467 from $1.1485 on WednesdayPound/dollar: DOWN at $1.3410 from $1.3420Dollar/yen: UP at 145.30 yen from 145.09 yenEuro/pound: DOWN at 85.50 pence from 85.55 penceNew York – Dow: DOWN 0.1 percent at 42,171.66 (close)

Nippon Steel completed its multi-billion-dollar acquisition of US Steel on Wednesday, granting rare veto-like power over strategic decisions to Washington with a “golden share”.The announcement concludes a saga that began in December 2023, when Nippon Steel agreed to acquire the linchpin of American steelmaking for $14.9 billion.An outright buyout sparked bipartisan political opposition, including from President Donald Trump, who railed against the proposed deal throughout the 2024 presidential campaign.But last month he announced a pivot, branding the revamped venture — blocked by former president Joe Biden on security grounds — as a “partnership” rather than a takeover.A national security agreement between the companies and the US government provides that approximately $11 billion in new investments will be made by 2028.And Washington’s non-economic golden share allows it to appoint one independent director as well as granting consent rights for proposed capital budget cuts among other powers.Nippon Steel CEO Eiji Hashimoto said Thursday in Tokyo that this “won’t hinder activities that we hope to conduct.””The agreement is fully satisfactory to us, as it ensures the management freedom… essential for business investment,” Hashimoto told reporters.”We intend to start implementing measures for revitalisation and development as soon as possible,” he said, promising not to “transfer jobs and production sites elsewhere.”It is “only natural” that the US government would be concerned about the takeover of a symbolic company, which dates back to 1901, Hashimoto added.- ‘Massive victory’ -A source close to the matter said Nippon Steel had bought all common shares of US Steel, completing the merger.The deal creates the world’s fourth biggest steelmaker — but Nippon Steel faces several big challenges, from trade tariffs to weak demand for steel products worldwide.Nippon Steel shares were up 2.4 percent Thursday afternoon, even as Tokyo’s benchmark Nikkei index slumped 0.9 percent.Pennsylvania Senator Dave McCormick, a Republican, thanked Trump on X and called the outcome “a massive victory for working families in the Mon Valley, our economy, our national security, and America’s manufacturing future!”But the United Steelworkers (USW) union, which vigorously fought the deal, vowed to “continue watching, holding Nippon to its commitments,” according to a statement.”We will use the most powerful tool workers have against global corporations: collective bargaining.”Biden had blocked the transaction in early January, shortly before leaving office.He said that placing “one of America’s largest steel producers under foreign control” could “create risk for our national security and our critical supply chains.”- Government influence -Besides agreeing to keep US Steel’s Pittsburgh headquarters and to maintain US production, the national security agreement calls for a majority of US Steel’s board to be US citizens, as are key leaders including the CEO.The “golden share” does not entitle the US government to dividends, nor does it require Washington to make investments in the company.While the structure gives the government “extraordinary” influence, the mechanism could be difficult to enforce in a downturn if Nippon fails to comply, said Atlantic Council senior fellow Sarah Bauerle Danzman.Nippon Steel’s promise of investment means more steel will be produced in the United States, leading to a likely drop in steel prices, said Gordon Johnson, CEO of GLJ Research.”US Steel was talking about closing significant capacity in Pennsylvania, which would have devastated a big swathe of that economy. So this is definitely a win for the US worker, it’s definitely a win for the US economy,” he told AFP.jmb-hih-nf-ap/kaf/fox

Asian stocks fell Thursday after the Federal Reserve warned Donald Trump’s trade war would likely reignite US inflation and dampen economic growth, while oil prices edged down as investors awaited developments in the Israel-Iran conflict.While geopolitical tensions are the key focus for markets, traders were also watching the US central bank’s latest meeting Wednesday as officials gathered to discuss monetary policy in light of the president’s tariff blitz.The Fed kept borrowing rates on hold for a fourth consecutive meeting, as expected, and said in a statement that “uncertainty about the economic outlook has diminished but remains elevated”.It later cut its economic growth forecast for this year and raised inflation and unemployment expectations, in its first updated projections since Trump unveiled his levies on most trading partners at the start of April.Boss Jerome Powell called the economy “still solid” but added that “increases in tariffs this year are likely to push up prices and weigh on economic activity”.He said the bank was “well-positioned to wait to learn more” before considering changes to rates. Still, the Fed’s so-called dot-plot chart predicted two cuts this year.”Ultimately, the cost of the tariff has to be paid and some of it will fall on the end consumer,” he added. “We know that’s coming and we just want to see a little bit of that before we make judgements prematurely.”With Trump increasingly calling for the bank to slash rates, Powell said: “We’ll make smarter and better decisions if we just wait a couple of months.”Hours before the decision, the president said: “We have a stupid person, frankly, at the Fed.”Speaking at the White House, he added: “We have no inflation, we have only success, and I’d like to see interest rates get down. Maybe I should go to the Fed. Am I allowed to appoint myself?””The Fed’s assessment indicates that the economy is in good shape, aligning with current economic data,” said Tai Hui at JP Morgan Asset Management.”However, trade policy, fiscal policy, and unintended consequences of policies from the Trump administration are contributing to market volatility in the second half of this year.”After a tepid day on Wall Street, Asian markets turned lower.Hong Kong led losses, falling more than one percent, while Tokyo, Shanghai, Sydney, Singapore, Seoul, Wellington, Taipei, Manila and Jakarta were also in the red.The Fed comments compounded the already weak sentiment on trading floors as Trump considers whether to join Israeli strikes against Iran.He indicated he was still looking into such a move and that Iran had reached out seeking negotiations, saying: “I may do it, I may not do it. I mean, nobody knows what I’m going to do.”Without providing more details, he added: “The next week is going to be very big.”Iran’s supreme leader Ayatollah Ali Khamenei earlier sounded a defiant note, rejecting Trump’s call for “unconditional surrender”.Still, with no concrete signs of escalation, oil prices edged down after another volatile day on Wednesday.Analysts said the main worry for traders was the possibility Tehran will shut a key shipping lane through which an estimated fifth of global oil supply flows.”We don’t see it as a likely scenario at this time, but given the precarious state that the Iran regime is in right now, I think everybody should be watching” the Strait of Hormuz, Mike Sommers, president of the American Petroleum Institute, told Bloomberg television in an interview.- Key figures at around 0230 GMT -Tokyo – Nikkei 225: DOWN 0.7 percent at 38,597.16 (break)Hong Kong – Hang Seng Index: DOWN 1.0 percent at 23,486.26Shanghai – Composite: DOWN 0.3 percent at 3,377.19Euro/dollar: DOWN at $1.1455 from $1.1485 on WednesdayPound/dollar: DOWN at $1.3396 from $1.3420Dollar/yen: UP at 145.15 yen from 145.09 yenEuro/pound: DOWN at 85.51 pence from 85.55 penceWest Texas Intermediate: DOWN 0.4 percent at $74.86 per barrelBrent North Sea Crude: DOWN 0.4 percent at $76.40 per barrelNew York – Dow: DOWN 0.1 percent at 42,171.66 (close)London – FTSE 100: UP 0.1 at 8,843.47 (close)

Nippon Steel and US Steel said Wednesday they had completed a long-debated transaction granting the US government a “golden share” — a veto-like power over the Japanese company’s strategic decisions.The agreement modifies a transaction originally announced in December 2023, in which Nippon Steel agreed to acquire US Steel for $14.9 billion. But the outright buyout of the iconic US company sparked bipartisan political opposition, including from President Donald Trump.Trump, who railed against the proposed deal throughout the 2024 presidential campaign, last month announced a pivot, branding the revamped venture as a “planned partnership.”And the US government will now have a say on Nippon’s plans for US infrastructure and jobs through its golden share.Nippon Steel CEO Eiji Hashimoto said Thursday in Tokyo that this “won’t hinder activities that we hope to conduct.”A national security agreement between the companies and Washington also provides that approximately $11 billion in new investments will be made by 2028.”The agreement is fully satisfactory to us, as it ensures the management freedom and re-producibility that are essential for business investment,” Hashimoto told reporters.”We intend to start implementing measures for revitalisation and development as soon as possible,” he said, promising not to “transfer jobs and production sites elsewhere.”Nippon Steel shares surged 4.6 percent Thursday morning, even as Tokyo’s benchmark Nikkei index slumped 0.7 percent.Pennsylvania Senator Dave McCormick, a Republican, thanked Trump on X and called the outcome “a massive victory for working families in the Mon Valley, our economy, our national security, and America’s manufacturing future!”But the United Steelworkers (USW) union, which vigorously fought the deal, vowed to “continue watching, holding Nippon to its commitments,” according to a statement.”And we will use the most powerful tool workers have against global corporations: collective bargaining.”- ‘World-leading capabilities’ -Under the December 2023 transaction, Nippon agreed to pay $55 per share for US Steel — an all-cash deal that included a 40 percent premium and pitched the combined company as the “best steelmaker with world-leading capabilities.”While the agreement included a pledge to maintain the name US Steel and the company’s Pittsburgh headquarters, industry watchers expected an exodus of executives.But the deal sparked bitter opposition from the USW and a broad range of politicians, including then-president Joe Biden and former Ohio senator JD Vance — now Trump’s vice president.So Nippon stepped up its lobbying efforts in Washington and Pittsburgh to win support for a transaction that appeared for months to be on life support.Biden blocked the transaction in early January, shortly before leaving office. He said that placing “one of America’s largest steel producers under foreign control” could “create risk for our national security and our critical supply chains.”But backers of the deal had been hoping the political climate shift following Trump’s election victory over Biden’s vice president Kamala Harris might help revive it.Besides agreeing to keep US Steel’s Pittsburgh headquarters and to maintain US production, the revamped deal’s national security agreement calls for a majority of US Steel’s board to be US citizens, as are key leaders including the CEO.The government’s “golden share” will allow it the right to appoint one independent director and grant it consent rights for proposed capital budget cuts, the redomiciling of activities outside the United States and on acquisitions in the country.The “golden share” does not entitle the US government to dividends, nor does it require Washington to make investments in the company.