Bessent says ‘no currency targets’ in Japan tariff talks

US Treasury Secretary Scott Bessent said Wednesday that Washington has “no currency targets” in its talks with Japan on tariffs, after repeated calls from President Donald Trump for a stronger yen.Japanese media reported meanwhile that a second round of talks in Washington was set for May 1, which will be closely watched as a barometer for efforts by other countries seeking tariff relief.Bessent said Washington is looking at “tariffs, non-tariff trade barriers, currency manipulation and government subsidy of labor and fixed capital investment” in the negotiations with Japan.But he added that there were “absolutely no currency targets.”Japanese Finance Minister Katsunobu Kato said he was ready for “close consultations about exchange rates” with Bessent when they meet Thursday on the sidelines of an IMF gathering in Washington, Japanese media reported.A weak yen makes Japanese exports relatively cheaper, while a strong dollar means that US exports are less competitive.The yen rose significantly since Trump’s tariffs were announced — it was trading at 158 for a dollar in mid-January.The close US ally and world’s number four economy is subject to the same 10 percent baseline tariffs that have been imposed on most countries, plus steeper levies on cars, steel and aluminum. Trump also imposed “reciprocal” tariffs on Japan of 24 percent, but those have been paused for 90 days along with those on other countries except China.Japan’s envoy Ryosei Akazawa met Trump and other senior US officials last week, and Japanese media reported Thursday that he will return for another round on May 1.Japanese broadcaster NHK on Thursday quoted unnamed sources as saying that US negotiators have said Washington cannot make exceptions for Japan.Other media reports have suggested that Tokyo is eyeing concessions such as increasing imports into Japan of US rice and soybeans as well as easing auto safety rules.

Bessent says ‘no currency targets’ in Japan tariff talks

US Treasury Secretary Scott Bessent said Wednesday that Washington has “no currency targets” in its talks with Japan on tariffs, after repeated calls from President Donald Trump for a stronger yen.Japanese media reported meanwhile that a second round of talks in Washington was set for May 1, which will be closely watched as a barometer for efforts by other countries seeking tariff relief.Bessent said Washington is looking at “tariffs, non-tariff trade barriers, currency manipulation and government subsidy of labor and fixed capital investment” in the negotiations with Japan.But he added that there were “absolutely no currency targets.”Japanese Finance Minister Katsunobu Kato said he was ready for “close consultations about exchange rates” with Bessent when they meet Thursday on the sidelines of an IMF gathering in Washington, Japanese media reported.A weak yen makes Japanese exports relatively cheaper, while a strong dollar means that US exports are less competitive.The yen rose significantly since Trump’s tariffs were announced — it was trading at 158 for a dollar in mid-January.The close US ally and world’s number four economy is subject to the same 10 percent baseline tariffs that have been imposed on most countries, plus steeper levies on cars, steel and aluminum. Trump also imposed “reciprocal” tariffs on Japan of 24 percent, but those have been paused for 90 days along with those on other countries except China.Japan’s envoy Ryosei Akazawa met Trump and other senior US officials last week, and Japanese media reported Thursday that he will return for another round on May 1.Japanese broadcaster NHK on Thursday quoted unnamed sources as saying that US negotiators have said Washington cannot make exceptions for Japan.Other media reports have suggested that Tokyo is eyeing concessions such as increasing imports into Japan of US rice and soybeans as well as easing auto safety rules.

Yemen’s Huthis seek propaganda boost from deadly US strikes

As America’s escalated bombing campaign and economic sanctions hit Yemen hard, the Iran-backed Huthi rebels in Washington’s crosshairs are trying to mine the situation for propaganda and recruitment, analysts said. On Monday, four days after 80 people were killed in US strikes on a fuel port, the Huthis released a slick promotional video showing special forces marching over the Israeli flag and somersaulting through flaming hoops. Against a soundtrack of dramatic music, the masked soldiers fire automatic weapons at targets bearing the American, Israeli and British flags — the three countries involved in attacks on Yemen since January last year.The Huthis, part of Iran’s “axis of resistance” against Israel and the US, have painted themselves as defenders of Gaza during the Israel-Hamas war, launching a drumbeat of missiles and drones both at Israel and at cargo vessels plying the key Red Sea trade route.In response, the administration of US President Donald Trump has ramped up pressure on the group, redesignating it a terrorist organisation and carrying out near-daily air strikes that have killed more than 200 people since mid-March.”The Huthis are absolutely trying to use the intensified campaign of US air strikes for propaganda purposes,” said Thomas Juneau, a Middle East specialist at the University of Ottawa’s Graduate School of Public and International Affairs.”They are actively using information operations to try to position themselves as champions of the resistance against the United States and its regional partners, including to maximise recruitment domestically.” – Child soldiers -The Huthis, whose regular rallies against the United States and Israel are attended by large crowds in the rebel-held capital Sanaa, have urged Yemenis to mobilise. They say that tens of thousands had signed up for military training since the start of the war in the Gaza Strip. In February last year, Human Rights Watch warned that child recruitment for the rebels’ armed forces had “noticeably” increased since the Gaza war began in October 2023. Rebel television aired interviews with survivors of last week’s attack on the Ras Issa fuel port, the deadliest of the US campaign, who vowed support for Gaza even as they lay wounded on stretchers. The US escalation “comes at a steep human cost, which could intensify Huthi mobilisation and recruitment”, said US-based Yemen expert Mohammed Albasha. But the US raids have also succeeded in destroying some Huthi military capabilities and have forced its leadership into hiding, analysts say.The Huthis managed to survive a decade of air strikes by a Saudi-led coalition and more than a year of US attacks aimed at deterring their harassment of Red Sea shipping.”The difference with the American bombing campaign is its relentless pursuit of Huthi leadership,” said Maged al-Madhaji, chairperson of the Sanaa Center for Strategic Studies, an independent think-tank. Attacks on communication networks and control centres have caused “unprecedented damage to the movement’s infrastructure”, he added. “However, this damage can be repaired if the campaign stops and neither a ground operation nor a political path is pursued. The Huthis are capable of adapting and enduring pressure.” – Economic damage ‘much bigger’ -Meanwhile, Washington is strangling the rebels financially, sanctioning banks and hitting infrastructure like the Ras Issa fuel terminal — a vital source of energy and funds for the Huthis’ precarious economy. Returning the rebels to the US terror list makes it risky for companies to operate in their territory, including by importing materials, as they could face sanctions of their own.”The economic damage is much bigger than just (military strikes),” said Baraa Shiban, a Yemen specialist at Britain’s Royal United Services Institute, a security think-tank. He also questioned the effectiveness of the Huthi propaganda among a population already reeling from more than a decade of war with the Saudi-led coalition.”People are frustrated, tired, and they’re exhausted. And, you know, the economic situation is very, very dire,” Shiban said. “People just want the cycle of violence to end.”

SK hynix posts record profits thanks to strong AI demand

South Korean chip giant SK hynix reported record quarterly profits Thursday thanks to soaring global demand for artificial intelligence, highlighting the firm’s ability to weather mounting tariff threats.The world’s second-largest memory chip maker dominates the market for high-bandwidth memory (HBM) semiconductors and is a key supplier for US titan Nvidia.SK hynix said it recorded an operating profit of 7.44 trillion won ($5.19 billion) — a nearly 158 percent year-on-year increase — on revenues of 17.64 trillion won from January–March. Both figures marked the company’s second-highest quarterly results on record, following last quarter’s performance.The news comes after Taiwanese chip giant TSMC last week announced a surge in net profit for the first quarter and forecast robust demand for artificial intelligence technology, despite the spectre of US tariffs on the critical sector.Net income also quadrupled compared to the previous year to 8.11 trillion won ($5.67 billion), with the firm saying the “memory market ramped up faster than expected due to competition to develop AI systems and inventory accumulation demand”.The company added that its annual HBM sales for this year are expected to double compared to last year.Despite the news, SK hynix’s shares fell more than one percent in Seoul morning trade.- Less affected -South Korea is a major exporter to the United States and its powerhouse semiconductor and auto industries would suffer greatly under President Donald Trump’s looming 25 percent tariffs.The country is also home to the world’s largest memory chip maker, Samsung.Experts say SK hynix’s resilience is because of the company’s growth in the DRAM market.SK hynix recently took the lead in DRAM revenues with a 36 percent market share, according to specialist research firm Counterpoint, surpassing Samsung for the first time and marking the first change in the top spot in over four decades.”Right now the world is focused on the impact of tariffs, so the question is: what’s going to happen with HBM DRAM?” said Counterpoint research director MS Hwang. “At least in the short term, the segment is less likely to be affected by any trade shock as AI demand should remain strong. More significantly, the end product for HBM is AI servers, which — by definition — can be borderless.”During a conference call, SK hynix noted that “uncertainty has grown around demand for semiconductors”, but sales plans for key clients for the company this year “remain unchanged”.”Global customers are, overall, maintaining their previously discussed memory demand levels with us,” said an SK hynix official. “Additionally, some clients are pulling forward demand by requesting short-term supply advances,” the company said. The company also noted that while roughly three-fifths of its sales are to US-based customers, tariffs apply only to products shipped directly to the United States. “Even when our clients are headquartered in the US, memory products are often shipped to locations outside the US, meaning the actual proportion of direct exports to the US is not particularly high,” an SK hynix official said.

Nintendo bullish on Switch 2 pre-sales in Japan

Nintendo shares surged Thursday after the gaming giant boasted of higher than expected demand in Japan for pre-orders of its hotly anticipated Switch 2 console.The successor to the Switch — the third best-selling console ever behind Sony’s PlayStation 2 and the Nintendo DS — is set to hit shelves worldwide on June 5.And the stakes are high: although Nintendo is diversifying into theme parks and hit movies, analysts say around 90 percent of its revenue comes from the Switch business.An X post attributed to company president Shuntaro Furukawa published Wednesday said there had been 2.2 million pre-order applications for the new console in Japan.This is an “extremely high” number which “greatly exceeds our initial expectations”, the post said.”It also significantly exceeds the quantity of Switch 2 consoles” that can be delivered on the release date.”Therefore, it is expected that a considerable number of customers will not win the lottery when the winners are announced” on Thursday, for which “we deeply apologise”.Shares in the Kyoto-based company gained as much as 5.5 percent on Thursday following the bullish announcement.Nintendo in early April revealed details about the Switch 2, which like its predecessor is a hybrid console that can be used on the go or connected to a TV screen.However the price has raised eyebrows at over a third more than the original Switch in major markets including the United States, where it will cost $449.99.A Japanese-only version for domestic consumers will be cheaper at 49,980 yen ($350).”Uncertainty around reciprocal tariffs, global trade and higher component costs” mean a price drop is unlikely within the next five years, industry research firm Niko Partners said earlier this month.Nintendo delayed pre-orders for the Switch 2 in the United States by several weeks as it assessed the fallout from US President Donald Trump’s trade levies.

Russia launches Kyiv missile attack, hours after Trump blames Zelensky

Russia launched a missile attack Thursday on Kyiv, killing at least two and wounding dozens hours after US President Donald Trump lashed out at Ukrainian President Volodymyr Zelensky for refusing to accept Moscow’s occupation of Crimea as a peace deal.The Ukrainian capital was attacked “by enemy missiles” in the early hours, with flights of drones heard across the city by AFP journalists as residents hid in bomb shelters. City mayor Vitali Klitschko said two people were killed and 54 others wounded so far in the attack.Of these, “38 of them, including six children, were hospitalised,” he said, adding that the rest of the wounded were treated at the scene. In Ukraine’s east, the city of Kharkiv was hit by seven missiles, said city mayor Igor Terekhov, who later warned that “a massive drone attack on the city continues”. “Stay safe!” Terekhov said on Telegram.Hours earlier, Trump had said a peace deal was “very close” — and effectively closed with Moscow — but accused Zelensky of being “harder” to negotiate with.The Ukrainian president’s refusal to accept US terms for ending the conflict — which began with Russia’s full-scale invasion in 2022 — “will do nothing but prolong the ‘killing field’,” he said.”I think we have a deal with Russia. We have to get a deal with Zelensky,” Trump told reporters. “I thought it might be easier to deal with Zelensky. So far it’s been harder.”Ahead of Trump’s broadside, Vice President JD Vance laid out the US vision for a peace deal where Russia would get to keep already occupied swaths of Ukraine, which include Crimea.Zelensky has rejected this as a violation of Ukraine’s constitution.That in turn prompted an outburst from Trump, in which he accused Zelensky of being “inflammatory” and taking a position “very harmful to the Peace Negotiations with Russia.”Zelensky “can have Peace or, he can fight for another three years before losing the whole Country,” Trump wrote on Truth Social.Trump said Crimea — a lush Black Sea peninsula with longtime major Soviet and Russian naval facilities — “was lost years ago” and “is not even a point of discussion.”Zelensky responded by posting on social media a 2018 “Crimea declaration” by Trump’s then-secretary of state Mike Pompeo, which said Washington “rejects Russia’s attempted annexation of Crimea.”As Kyiv was bombarded with a Russian missile attack, Zelensky’s top aide took to Telegram, saying “Russia is attacking Kyiv, Kharkiv and other cities with missiles and drones right now”. “Putin shows only a desire to kill,” said Andriy Yermak. “The fire must stop. The attacks on civilians must stop.”- ‘Freeze’ Russia’s gains -Weeks into a US-initiated process, Trump’s patience was “running very thin,” White House spokeswoman Karoline Leavitt said.Intense US pressure on Ukraine to accept a deal comes after Trump regularly boasted on the campaign trail that he would resolve the conflict in 24 hours.He has put no equivalent visible pressure on Russia, while dangling a lifting of massive US economic sanctions against Moscow if the fighting stops.Meanwhile, on a trip to India, his deputy Vance gave the fullest public explanation of the US plan so far, saying the deal would “freeze the territorial lines at some level close to where they are today.””The Ukrainians and the Russians are both going to have to give up some of the territory they currently own,” Vance said.Freezing the frontlines would mean Ukraine losing large areas to Russia.The vice president did not explain what territory Russia — which seized Crimea in 2014 — would have to give up.It was time for Moscow and Kyiv “to either say ‘yes,’ or for the United States to walk away from this process,” Vance said.Growing speculation over Washington being ready to recognise Russian rule over Crimea has alarmed European capitals.French President Emmanuel Macron’s office said “Ukraine’s territorial integrity and European aspirations are very strong requirements for Europeans.”A spokesperson for UK Prime Minister Keir Starmer told reporters “it has to be up to Ukraine to decide its future.”Top Ukrainian officials wrapped up a round of talks in London on Wednesday with representatives from Britain, France, Germany and the United States.US presidential envoy Steve Witkoff is to visit Moscow this week and Trump said he would likely meet with Russian President Vladimir Putin shortly after his trip to the Middle East in mid-May.The diplomatic wrangling and strikes on Kyiv came after a fresh wave of Russian air attacks that shattered a brief Easter truce, killing nine and wounding at least 30 more in the southeastern city of Marganets.In light of the attacks, Zelensky has called for an “immediate, full and unconditional ceasefire.”burs-sms/dhc/hmn

Trump seeks ‘fair deal’ with China but pathway unclear

US President Donald Trump on Wednesday played up prospects of a “fair deal” on trade with China, but his top officials offered few details of how Washington might de-escalate its damaging tariff war with Beijing.Trump told reporters his country would have a “fair deal with China,” adding that “everything’s active” when asked if Washington was talking to Beijing.But how soon the tariffs can be lowered “depends on them,” Trump said, referring to Beijing, even as he maintained that he gets along “very well” with Chinese President Xi Jinping and hopes they can reach an agreement.Trade tensions between the world’s two biggest economies have soared as Trump ramped up levies on imports from China this year, imposing an additional 145 percent tariff on many products over practices Washington has deemed unfair, and other issues.Beijing in turn has countered with new 125 percent tariffs on US goods.Despite signals that Washington is looking towards a fair agreement, the state of discussions remains murky.Asked if there is direct US contact with China on trade, Trump said: “Every day.”But earlier Wednesday, US Treasury Secretary Scott Bessent told reporters that the two countries are “not yet” talking when it comes to lowering tariffs.”I think both sides are waiting to speak to the other,” he said at an event on the sidelines of the International Monetary Fund and World Bank’s spring meetings in Washington.He added that there is no unilateral offer from Trump to slash duties on Chinese goods.- ‘An embargo’ -Bessent said the staggeringly high tariffs both countries have imposed on each other’s goods have to come down before negotiations can occur.”I don’t think either side believes that the current tariff levels are sustainable, so I would not be surprised if they went down in a mutual way,” he added on the sidelines of an Institute of International Finance forum.”This is the equivalent of an embargo, and a break between the two countries in trade does not suit anyone’s interest,” Bessent said, stressing that “de-escalation by both sides is possible.”But he had no timeframe on how soon bilateral talks could take place.”It’s both a blessing and a curse that the strongest relationship is at the very top,” Bessent said, referring to Trump’s ties with Chinese counterpart Xi. But with “any de-escalation, the talks would not begin at the very top.”Joseph Grieco, professor of political science at Duke University, told AFP that Trump may continue to chase China for a deal “to keep the financial markets off his back.””I worry Trump will eventually offer President Xi a favorable deal, one that doesn’t address the serious economic problems the US actually has with China,” he said.While Trump has swiftly rolled out sharp tariffs on different countries and sectors, he has also been quick to introduce certain exemptions — most recently some temporary reprieve for tech products like smartphones and chipmaking tools.And he could widen the carveouts, the Financial Times reported Wednesday, saying Trump could exempt car parts from some tariffs on Chinese imports — alongside those on steel and aluminum.On Wednesday afternoon, Trump said he was not considering changes to US auto tariffs but noted that levies on Canada could rise in terms of cars.Separately, Bessent said he did not have a stance on whether the president had the authority to fire Federal Reserve Chair Jerome Powell if he wanted to.He suggested Trump’s previous comment that the “termination” of Powell could not come fast enough might also refer to the end of the Fed chief’s term.Earlier Wednesday, Bessent said in a speech that Beijing’s export-reliant economic model is “unsustainable” and “not only harming China but the entire world.”He stressed US concerns around trade imbalances that the Trump administration says it hopes to address through sweeping tariffs.But Bessent maintained that “America first does not mean America alone.”He insisted the administration’s moves are broadly a call for deeper collaboration and mutual respect among trading partners, while taking aim at policy choices by other countries that he said have hollowed out US manufacturing and put its security at risk.