2025-05-21 00:02
TOKYO, May 21 (Reuters) - Japanese exports rose 2% in April from a year earlier but shipments to the U.S. fell 1.8%, data from the Ministry of Finance showed on Wednesday. The year-on-year increase in total exports matched a median market forecast. Sign up here. Imports fell 2.2% in April from a year earlier, versus a 4.5% drop expected by analysts. As a result, Japan marked a trade deficit of 115.8 billion yen ($802.44 million), compared with a median market forecast for a 227.1 billion yen surplus. ($1 = 144.3100 yen) https://www.reuters.com/world/china/japans-exports-rise-2-year-april-shipments-us-slump-2025-05-21/
2025-05-20 23:45
Eto resigns after rice remarks spark backlash Rice prices double, angering voters Ex-environment minister Shinjiro Koizumi appointed as successor Koizumi promises results as 'Minister of Rice' Prime Minister Ishiba struggles with low approval ratings TOKYO, May 21 (Reuters) - Japanese farm minister Taku Eto resigned on Wednesday after remarks he made about rice triggered a firestorm of criticism from voters and lawmakers, posing a fresh challenge to Prime Minister Shigeru Ishiba's embattled government. Eto has been in hot water since media reports exposed comments he made at a weekend political fundraising party that he had "never had to buy rice" thanks to gifts from supporters. Sign up here. The comment led to a frenzy of criticism from voters, already angry about the historically high price of the staple food due to a poor harvest and elevated demand from a boom in tourism. "I made an extremely inappropriate remark at a time when citizens are suffering from soaring rice prices," Eto told reporters after handing in his resignation at the prime minister's office. Ishiba appointed former environment minister Shinjiro Koizumi as his replacement at the Ministry of Agriculture, Forestry and Fisheries (MAFF), saying he was counting on his reform-minded stance to produce results. "Mr Koizumi is someone who has experience, insights, and passion for reforms on agriculture and fisheries," Ishiba said. The doubling of rice prices from last year has become a top concern for Japanese voters, long accustomed to years of deflation and suffering from stubbornly low inflation-adjusted wages. The government has been releasing rice since March from its emergency stockpile to tame prices, but that has had little impact. Data on Monday showed supermarket rice prices rising again in the week through May 11, to 4,268 yen ($29.73) for a 5 kg bag, after falling for the first time in 18 weeks. The high prices have increasingly led to retailers and consumers seeking out cheaper, foreign rice. Ishiba said prices should be between 3,000 yen and 3,999 yen, and that for that to happen, it was necessary to reverse the government's policy for the last half-century of encouraging reduced production to keep prices steady. 'MINISTER OF RICE' "What's on everyone's mind right now are the soaring rice prices and anxiety over whether there's enough of it in the market, and I want to dispel these concerns," said Koizumi, whose father Junichiro pushed through sweeping reforms and deregulation as prime minister in the 2000s. "(MAFF) covers a wide range of responsibilities but in my mind, what I need to focus on right now is simply rice. I'm going into this job with the mindset that I am essentially the 'minister in charge of rice'," he said. Koizumi, who previously served as the head of the Liberal Democratic Party's (LDP) agriculture and forestry division, said there would be no sacred cows in his efforts to lower rice prices, and that a strong political will would be needed to achieve those goals. Traditionally, rice farmers are a strong support base for the long-governing LDP, and Japan protects the rice market with hefty levies beyond the tariff-free "minimum access" quota agreed under World Trade Organization rules. Eto's departure threatens Ishiba's already-shaky grip on power ahead of key upper house elections in July. His LDP and its junior coalition partner Komeito lost their majority in the more powerful lower house in a snap election Ishiba called in October shortly after taking office. Many users on social media expressed disdain over the latest saga. "Reaffirmed the need for the LDP to be completely annihilated," one user wrote on X, sharing their belief that Koizumi would do no better than Eto. Eto's resignation is the first from Ishiba's cabinet not involving ministers who lost their seats in elections. "Minister Eto's resignation was inevitable from the moment the gaffe occurred," said Hiroshi Shiratori, a political science professor at Hosei University in Tokyo. "The decision to replace him only after five opposition parties had planned their no-confidence motion was too slow, exposing Prime Minister Ishiba's lack of leadership." A Kyodo News opinion poll on Sunday showed support for Ishiba at a record low 27.4%, with nearly nine out of 10 voters dissatisfied with the government's response to soaring rice prices. ($1 = 143.5800 yen) https://www.reuters.com/world/japanese-farm-minister-resigns-following-gaffe-over-rice-2025-05-20/
2025-05-20 23:08
Tesla in talks to license FSD software to major automakers, Musk says Robotaxi deployment would scale up to about a thousand within a few months, Musk says xAI ramps up data center capacity with Nvidia chips in Memphis Tesla, xAI merger not out of question but would need shareholder ok, Musk says May 20 (Reuters) - Tesla (TSLA.O) , opens new tab is set to begin a test of its long-promised robotaxi service on schedule in Austin, Texas, by the end of June, Chief Executive Elon Musk said on Tuesday, even as the company faces safety questions from a U.S. regulator. The electric vehicle maker will roll out about 10 self-driving cars in some parts of the city, and scale up to about a thousand within a few months, Musk told CNBC in an interview. Sign up here. "We are actually going to deploy not to the entire Austin region, but only the parts that are the safest." Tesla sales have fallen worldwide with rising competition and as Musk faces a backlash for his right-wing political views and his work for U.S. President Donald Trump. Musk has said he will reduce his work for Trump and focus on Tesla. "My rough plan on the White House is to be there for a couple days, every few weeks, and to be helpful where I can be helpful," he said. A successful robotaxi trial is crucial for Tesla as Musk has shifted the company's focus away from building a new, cheaper EV platform to launching the robotaxi service and its Optimus humanoid robots. Much of Tesla's valuation hangs on that bet. "The only things that matter in the long term are autonomy and Optimus," Musk told CNBC. Autonomous vehicle technology has been hard to commercialize, with tight regulations and heavy investments forcing many companies to give up. Those still in the race, including Alphabet's Waymo, have faced increased scrutiny. The National Highway Traffic Safety Administration has been investigating collisions involving Tesla's full self-driving (FSD) advanced driver assistance software in reduced roadway visibility conditions since October. The U.S. road safety regulator asked Tesla last week to answer questions on its paid robotaxi service launch to assess how the cars will perform in poor weather. Tesla is in talks with major automakers to license the FSD software that is expected to underpin its robotaxis, Musk said. To power his broader artificial intelligence vision, Musk's xAI startup has been ramping up its data center capacity to train more advanced models, and its supercomputer cluster in Memphis, Tennessee, called "Colossus," is touted as the world's largest. xAI will deploy a million of Nvidia's (NVDA.O) , opens new tab advanced Blackwell chips at a new facility near Memphis, Musk said. "So long as Nvidia is better than what we make, we'll keep buying from Nvidia," he said. xAI bought a 1-million-square-foot property in Southwest Memphis, Tennessee, the Greater Memphis Chamber said in March. Musk, who merged xAI with his social media platform X in March, said a merger between Tesla and xAI was not being considered but was "not out of the question," though it would need shareholder approval. https://www.reuters.com/business/autos-transportation/musk-says-tesla-is-track-launch-robotaxi-trial-austin-texas-by-end-june-2025-05-20/
2025-05-20 23:05
LONDON, May 21 (Reuters) - Pay settlements granted by British employers stayed at 3% in the three months to April but many firms are now offering smaller raises, according to figures from data firm Brightmine that are likely to be welcomed by the Bank of England. Wednesday's data marked the fifth consecutive rolling quarter of pay awards at 3%, the weakest pace of increase since December 2021. Sign up here. BoE officials are watching to see how employers react to a hike in their social security contributions - known in Britain as national insurance - and a sharp rise in the national minimum wage. Both took effect in April, a key month for pay deals. Brightmine said nearly half of employers it surveyed offered pay rises below the median 3% level. "Pay awards are stable, but beneath the surface, many businesses are opting for lower rises and our headline median could therefore fall in the months ahead," said Sheila Attwood, HR insights and data lead at Brightmine. "The subdued pattern of pay settlements indicates that many employers continue to approach wage decisions with caution in the face of ongoing cost pressures that will continue into the second half of the year." The BoE wants to see inflation pressure in Britain's jobs market abating sufficiently for it to carry on cutting interest rates. The central bank's chief economist Huw Pill said on Tuesday that the BoE's pace of rate cuts had been too fast. Official figures due at 0600 GMT are likely to show the rate of headline inflation in Britain jumped in April due in large part to higher regulated prices for water and energy. Brightmine analysed 136 pay settlements effective in the three months to April 30 covering more than 309,000 employees. https://www.reuters.com/sustainability/sustainable-finance-reporting/uk-employer-pay-rises-hold-3-signs-softness-grow-brightmine-says-2025-05-20/
2025-05-20 22:53
Indexes down: Dow 0.27%, S&P 500 0.39%, Nasdaq 0.38% Tesla rise after Musk says committed to being CEO Home Depot reverses gains following Q1 sales beat NEW YORK, May 20 (Reuters) - U.S. stocks fell on Tuesday, with the benchmark S&P 500 ending six straight sessions of gains, under pressure from rising Treasury yields, with the U.S. sovereign debt profile in focus. President Donald Trump traveled to Capitol Hill, seeking to persuade Republican lawmakers to pass a sweeping tax-cut bill, which analysts estimate will possibly add $3 trillion-$5 trillion to the federal government's $36.2 trillion in debt. Sign up here. The Dow snapped three consecutive sessions of gains and the Nasdaq fell after a two-session winning streak. Eight out of 11 of the S&P 500's sectors fell, led by losses in energy, communication services, consumer discretionary stocks. Utilities, healthcare and consumer staples equities made gains. "It's a little bit of an excuse just after the run that we've had to hit the pause button and see markets consolidate a little bit and a little bit of churn under the surface ... that's what we're seeing right now," said Garrett Melson, portfolio strategist at Natixis Investment Managers in Boston. "But obviously when you look across to the fixed-income world, you're seeing a huge bid that came back into the market yesterday. ... now we're back to the races with yields pushing higher." The Dow Jones Industrial Average (.DJI) , opens new tab fell 114.83 points, or 0.27%, to 42,677.24, the S&P 500 (.SPX) , opens new tab lost 23.14 points, or 0.39%, to 5,940.46 and the Nasdaq Composite (.IXIC) , opens new tab lost 72.75 points, or 0.38%, to 19,142.71. Investors were also eyeing commentary on the monetary policy outlook from several Federal Reserve officials, including St. Louis Fed President Alberto Musalem. Moody's and the other big ratings agencies Fitch and S&P Global Ratings have downgraded the U.S. sovereign credit, citing the government's debt profile. Traders currently expect at least two 25-basis-point Fed rate cuts by the end of 2025, with the first expected in September, according to data compiled by LSEG. The yield on benchmark U.S. 10-year notes rose 0.4 basis points to 4.481%. Home Depot (HD.N) , opens new tab fell 0.6%, reversing early gains, after the home improvement retailer reported first-quarter sales that beat Wall Street estimates. Tesla (TSLA.O) , opens new tab rose 0.5% after Chief Executive Elon Musk said at an economic forum in Qatar that he was still committed to being CEO in five years. Other technology heavyweight stocks fell, including Nvidia (NVDA.O) , opens new tab. The chipmaker is scheduled to report quarterly earnings on May 28. Declining issues outnumbered advancers by a 1.37-to-1 ratio on the NYSE. There were 219 new highs and 33 new lows on the NYSE. The S&P 500 posted 19 new 52-week highs and no new lows while the Nasdaq Composite recorded 59 new highs and 46 new lows. Volume on U.S. exchanges was 16.14 billion shares, compared with the 17.38 billion average for the full session over the last 20 trading days. https://www.reuters.com/business/us-stock-futures-edge-down-ahead-commentary-fed-officials-2025-05-20/
2025-05-20 22:52
North America weakness fuels concerns over Azek acquisition Annual profit falls 9%, FY 2026 guidance disappoints Outlook clouded by broader economic uncertainty Shares fall more than 8% May 21 (Reuters) - ASX-listed building materials group James Hardie (JHX.AX) , opens new tab forecast tepid earnings growth for its North American business while reporting a drop in annual profit on Wednesday, hammering its shares. The results raised fresh concerns about the group's planned $8.8 billion acquisition of Chicago-based building products maker Azek (AZEK.N) , opens new tab, as looming U.S. trade tensions and tariffs threatened to further dampen homeowner spending on renovation projects. Sign up here. Investors noted weakness in its North American operations, the company's biggest market and profit engine, where volumes fell 2% year-on-year in the fourth quarter and missed consensus estimates by 1%. The world's biggest fibre cement maker projected softening North American market volumes in 2026, sales growth in the "low single digits", and lower capital spending overall at $325 million. "There is softness in the U.S. across both large projects and repair and renovation markets - similar to what U.S. peers have been saying," John Lockton, head of investment strategy at MST Financial, said. While the company's guidance factored in a cut in capital expenditure for fiscal 2026 and flagged a lower earnings base, the leverage ratio after the Azek acquisition remained "uncomfortably high", Lockton added. James Hardie had said in March it planned to fund the cash portion of the Azek deal through debt financing. The group said on Wednesday the deal "will further accelerate our sales growth by an incremental two and a half percentage points on top of our double-digit trajectory... and delivery of $500 million of run-rate commercial synergies over the next five years". The company's Australia-listed shares were among the top drags on the main index (.AXJO) , opens new tab, falling as much as 8.3% to A$35.30 before paring losses. James Hardie said it expected low single-digit growth in total adjusted operating earnings in fiscal 2026, below consensus expectations of 8% growth. It did not provide a clear profit outlook number for fiscal 2026 in its earnings announcement on Wednesday, contrary to similar announcements in the past. Annual adjusted net income came in at $644.3 million, down from $707.5 million a year ago, but slightly ahead of analysts' estimates. https://www.reuters.com/markets/commodities/fibre-cement-maker-james-hardies-full-year-profit-falls-9-2025-05-20/
