Japan&nbsp;and the United States have agreed to target a broad deal on bilateral trade by September, seeking to bridge differences of opinion over tariffs on beef and the automobile sector, the Nikkei business daily reported on Sunday.

As part of a drive to rectify what he claims are unfair global trade imbalances, US&nbsp;President Donald Trump has been urging Tokyo to accelerate <a href="https://www.wionews.com/.../us-japan-trade-agreement-will-be-model-for- indo-pacific-pence-177013">trade talks</a> that would open up Japan's politically sensitive agriculture sector, as well as curbing&nbsp;Japan's US-bound auto exports.

The agreement to target a deal by September was reached during a meeting between&nbsp;Japanese Economy Minister Toshimitsu Motegi and US&nbsp;Trade Representative Robert Lighthizer in Washington DC, the Nikkei said, citing unidentified negotiating sources.

The paper said both sides hope to have a broad trade deal in place by the time&nbsp;Japanese Prime Minister Shinzo Abe meets US&nbsp;President Donald Trump on the sidelines of United Nations' general assembly scheduled for later in September in New York.

On Friday, Motegi told reporters after meeting Lighthizer that the two sides made "significant progress" in narrowing their differences on trade and agreed to hold another ministerial-level meeting later this month.

Washington seeks the early opening of&nbsp;Japan's agriculture sector including reductions in 38.5% tariffs on US&nbsp;beef imports, while&nbsp;Japan&nbsp;calls for the abolition of US&nbsp;tariffs on&nbsp;Japan's industrial goods such as car parts.

Trump and Abe could also look at producing some kind of trade accord later this month when they may meet on the sidelines of Group of Seven leaders' summit, the Nikkei added.

Japan and the United States have agreed to target a broad deal on bilateral trade by September, seeking to bridge differences of opinion over tariffs on beef and the automobile sector, the Nikkei business daily reported on Sunday.

Japan and the United States have agreed to target a broad deal on bilateral trade by September, seeking to bridge differences of opinion over tariffs on beef and the automobile sector, the Nikkei business daily reported on Sunday. As part of a drive to rectify what he claims are unfair global trade imbalances, US President Donald Trump has been urging Tokyo to accelerate trade talks that would open up Japan's politically sensitive agriculture sector, as well as curbing Japan's US-bound auto exports. The agreement to target a deal by September was reached during a meeting between Japanese Economy Minister Toshimitsu Motegi and US Trade Representative Robert Lighthizer in Washington DC, the Nikkei said, citing unidentified negotiating sources. The paper said both sides hope to have a broad trade deal in place by the time Japanese Prime Minister Shinzo Abe meets US President Donald Trump on the sidelines of United Nations' general assembly scheduled for later in September in New York. On Friday, Motegi told reporters after meeting Lighthizer that the two sides made "significant progress" in narrowing their differences on trade and agreed to hold another ministerial-level meeting later this month. Washington seeks the early opening of Japan's agriculture sector including reductions in 38.5% tariffs on US beef imports, while Japan calls for the abolition of US tariffs on Japan's industrial goods such as car parts. Trump and Abe could also look at producing some kind of trade accord later this month when they may meet on the sidelines of Group of Seven leaders' summit, the Nikkei added.

Japan, US target broad bilateral trade deal by September: Report

KSL Cleantech is set to launch e-vehicles in India with China's Huaihai. Watch this video to know more.

WION Wallet: KSL Cleantech to launch e-vehicles in India with Huaihai

South Korean President Moon Jae-in on Friday condemned Japan's decision to <a href="https://www.wionews.com/world/japan-to-remove-south-korea-from-favoured-export-partner-white-list-240044">remove his country from a "white list"</a> of favoured trading partners, calling it a "reckless" move and threatening unspecified countermeasures.

Tokyo was responsible for "ignoring diplomatic solutions" and "aggravating the situation" Moon Jae-in said in remarks to a short-notice cabinet meeting televised live. "Responsibility for what is going to happen next also lies squarely with the Japanese government."

Earlier Japan said that it will remove South Korea from the ''white list''.

The measure is expected to take effect later this month.

Tokyo's decision comes despite calls from Washington for the two US allies to set aside their differences, and after South Korea warned it would review security cooperation with Japan if the de-listing went ahead.

South Korea becomes the first country to be dropped off the list.

The measure is the latest blow to ties between South Korea and Japan, which have plunged to new lows over a long-running dispute on forced labour during World War II.

South Korean President Moon Jae-in on Friday condemned Japan's decision to remove his country from a "white list" of favoured trading partners, calling it a "reckless" move and threatening unspecified countermeasures.

South Korean President Moon Jae-in on Friday condemned Japan's decision to remove his country from a "white list" of favoured trading partners, calling it a "reckless" move and threatening unspecified countermeasures. Tokyo was responsible for "ignoring diplomatic solutions" and "aggravating the situation" Moon Jae-in said in remarks to a short-notice cabinet meeting televised live. "Responsibility for what is going to happen next also lies squarely with the Japanese government." Earlier Japan said that it will remove South Korea from the ''white list''. The measure is expected to take effect later this month. Tokyo's decision comes despite calls from Washington for the two US allies to set aside their differences, and after South Korea warned it would review security cooperation with Japan if the de-listing went ahead. South Korea becomes the first country to be dropped off the list. The measure is the latest blow to ties between South Korea and Japan, which have plunged to new lows over a long-running dispute on forced labour during World War II.

Responsibility for what happens next lies with Japan: South Korea President Moon Jae-in on trade confrontation

Tensions have now intensified as Japan is dropping South Korea from its most favoured trading partner list. The decision was taken by the Japanese cabinet which has now removed South Korea from the white list. Watch this video to know more.

Japan drops South Korea from trade list

Japan on Friday said it will remove South Korea from a "white list" of favoured export partners, a move that Seoul has warned will have "grave consequences" for <a href="https://www.wionews.com/world/us-south-korea-military-exercises-still-on-despite-norths-warnings-pentagon-official-240011">security ties between the US allies</a>.

"The government at a cabinet meeting today approved a revision to the export control law... South Korea, the only Asian nation on the list, will be removed," Japan's Trade Minister Hiroshige Seko told reporters.

The measure, which is expected to take effect later this month, comes after Tokyo last month tightened the rules on exports of three products key to South Korea's chip and smartphone industries, raising fears for global supply in the sectors.

Tokyo's decision comes despite calls from Washington for the two US allies to set aside their differences, and after South Korea warned it would review security cooperation with Japan if the de-listing went ahead.

South Korea is now the first country ever to be dropped from Japan's so-called "white" list of nations granted minimal constraints on exports of products that could be diverted to military use.

It means hundreds of products listed as sensitive will be subject to tighter export controls, though experts said the effect would be more symbolic than economic.

It "will only have a limited impact on the South Korean economy," said Hajime Yoshimoto, senior economist at Nomura Securities, in part because Japanese exporters can obtain special permission to ship to non-white-list countries with simplified procedures. &nbsp;

Many major Japanese exporters already have that special permission, according to the trade ministry.

"I'd like to make it clear that this is not an export embargo," Seko said Friday.

"We believe stripping South Korea of preferential treatment does not affect the global supply chain or have a negative impact on Japanese companies."

The measure is the latest blow to ties between South Korea and Japan, which have plunged to new lows over a long-running dispute on forced labour during World War II.

A string of recent South Korean court rulings ordering Japanese companies to compensate victims of wartime forced labour have infuriated Ja

Japan on Friday said it will remove South Korea from a "white list" of favoured export partners, a move that Seoul has warned will have "grave consequences" for security ties between the US allies.

Japan on Friday said it will remove South Korea from a "white list" of favoured export partners, a move that Seoul has warned will have "grave consequences" for security ties between the US allies. "The government at a cabinet meeting today approved a revision to the export control law... South Korea, the only Asian nation on the list, will be removed," Japan's Trade Minister Hiroshige Seko told reporters. The measure, which is expected to take effect later this month, comes after Tokyo last month tightened the rules on exports of three products key to South Korea's chip and smartphone industries, raising fears for global supply in the sectors. Tokyo's decision comes despite calls from Washington for the two US allies to set aside their differences, and after South Korea warned it would review security cooperation with Japan if the de-listing went ahead. South Korea is now the first country ever to be dropped from Japan's so-called "white" list of nations granted minimal constraints on exports of products that could be diverted to military use. It means hundreds of products listed as sensitive will be subject to tighter export controls, though experts said the effect would be more symbolic than economic. It "will only have a limited impact on the South Korean economy," said Hajime Yoshimoto, senior economist at Nomura Securities, in part because Japanese exporters can obtain special permission to ship to non-white-list countries with simplified procedures. Many major Japanese exporters already have that special permission, according to the trade ministry. "I'd like to make it clear that this is not an export embargo," Seko said Friday. "We believe stripping South Korea of preferential treatment does not affect the global supply chain or have a negative impact on Japanese companies." The measure is the latest blow to ties between South Korea and Japan, which have plunged to new lows over a long-running dispute on forced labour during World War II. A string of recent South Korean court rulings ordering Japanese companies to compensate victims of wartime forced labour have infuriated Ja

Japan to remove South Korea from favoured export partner 'white list'

Russian Prime Minister Dmitry Medvedev on Friday visited one of a chain of far-eastern islands claimed by Japan, sparking a protest from Tokyo.

Paying a visit to Russia's Sakhalin Island, Medvedev also went to Iturup, one of the four islands contested by Japan, where it is known as Etorofu.

"This is our land," Medvedev told reporters during the trip which included visits to a fish-processing plant and hot springs.

"These islands are part of the Sakhalin region," he said in televised remarks, reiterating Russia's traditional stance.

"What grounds can there be for our concern?" he said, referring to Japan's protests.

The Japanese foreign ministry said Medvedev's decision to visit the island was "extremely regrettable."

"Even now, more than 70 years after the war, territorial issues have not been solved with the Soviet Union/Russia and intensive peace treaty negotiations have been underway," the Japanese foreign ministry said in a statement.

"We will strongly urge Russia to constructively deal with issues such as the signing of a peace treaty to move forward the future Japan-Russia relationship."

Medvedev said that the more Japan protested the more reasons Russian officials had to visit the islands known in Russia as the Kurils and the Northern Territories in Japan.

The Kurils, which lie north of Japan's Hokkaido island, have been controlled by Moscow since they were seized by Soviet troops in the dying days of World War II.

Last year, President Vladimir Putin suggested that Russia and Japan sign a peace treaty, ending World War II hostilities "without any preconditions".

Both countries have made little progress on the issue in recent months, however.

Medvedev travelled to the Kuril island of Kunashir as president in 2010, becoming the first Russian leader to visit the disputed islands and provoking fury in Tokyo.&nbsp;

He has also visited the islands several times as prime minister.

Russian Prime Minister Dmitry Medvedev on Friday visited one of a chain of far-eastern islands claimed by Japan, sparking a protest from Tokyo. Paying a visit to Russia's Sakhalin Island, Medvedev also went to Iturup, one of the four islands contested by Japan, where it is known as Etorofu.

Russian Prime Minister Dmitry Medvedev on Friday visited one of a chain of far-eastern islands claimed by Japan, sparking a protest from Tokyo. Paying a visit to Russia's Sakhalin Island, Medvedev also went to Iturup, one of the four islands contested by Japan, where it is known as Etorofu. "This is our land," Medvedev told reporters during the trip which included visits to a fish-processing plant and hot springs. "These islands are part of the Sakhalin region," he said in televised remarks, reiterating Russia's traditional stance. "What grounds can there be for our concern?" he said, referring to Japan's protests. The Japanese foreign ministry said Medvedev's decision to visit the island was "extremely regrettable." "Even now, more than 70 years after the war, territorial issues have not been solved with the Soviet Union/Russia and intensive peace treaty negotiations have been underway," the Japanese foreign ministry said in a statement. "We will strongly urge Russia to constructively deal with issues such as the signing of a peace treaty to move forward the future Japan-Russia relationship." Medvedev said that the more Japan protested the more reasons Russian officials had to visit the islands known in Russia as the Kurils and the Northern Territories in Japan. The Kurils, which lie north of Japan's Hokkaido island, have been controlled by Moscow since they were seized by Soviet troops in the dying days of World War II. Last year, President Vladimir Putin suggested that Russia and Japan sign a peace treaty, ending World War II hostilities "without any preconditions". Both countries have made little progress on the issue in recent months, however. Medvedev travelled to the Kuril island of Kunashir as president in 2010, becoming the first Russian leader to visit the disputed islands and provoking fury in Tokyo. He has also visited the islands several times as prime minister.

Russia PM Dmitry Medvedev visits disputed island; sparks protest from Japan

Investors continued to pump in money into bonds and shunned equities in the past week, Bank of America Merrill Lynch (BAML) said on Friday, amid worries of a corporate earnings recession and trade tensions across the world.

BAML said its global earnings per share (EPS) "growth model" suggested an earnings recession. The model forecasts a 7.5% drop in EPS in the next 12 months.

With all major central banks coming out with less-dovish guidance, in the week to July 31 investors played it safe by pouring $10.5 billion into bonds while pulling some $1.7 billion money out of equities.

The US was the only region to attract investors, who pumped $4.8 billion into equities, while European and Japan stocks had outflows. Money has flowed out of European equities in 70 of the past 73 weeks.

Global equities were roiled last week by central bank comments that fell-short of expectations. European markets took a sharp hit after the European Central Bank kept interest&nbsp;rates intact and its outlook on easing came in below market expectations.

The US Federal Reserve cut interest rates in line with market expectations on Wednesday but poured cold water on market expectations of a lengthy easing cycle sending global stocks lower.

Investors continued to pump in money into bonds and shunned equities in the past week, Bank of America Merrill Lynch (BAML) said on Friday, amid worries of a corporate earnings recession and trade tensions across the world.

Investors continued to pump in money into bonds and shunned equities in the past week, Bank of America Merrill Lynch (BAML) said on Friday, amid worries of a corporate earnings recession and trade tensions across the world. BAML said its global earnings per share (EPS) "growth model" suggested an earnings recession. The model forecasts a 7.5% drop in EPS in the next 12 months. With all major central banks coming out with less-dovish guidance, in the week to July 31 investors played it safe by pouring $10.5 billion into bonds while pulling some $1.7 billion money out of equities. The US was the only region to attract investors, who pumped $4.8 billion into equities, while European and Japan stocks had outflows. Money has flowed out of European equities in 70 of the past 73 weeks. Global equities were roiled last week by central bank comments that fell-short of expectations. European markets took a sharp hit after the European Central Bank kept interest rates intact and its outlook on easing came in below market expectations. The US Federal Reserve cut interest rates in line with market expectations on Wednesday but poured cold water on market expectations of a lengthy easing cycle sending global stocks lower.

Fears of earnings recession keep investors away from stocks: Bank of America Merrill Lynch

Asian stocks took another beating on Friday (August 2) with investors piling into safe-haven assets after U.S. President Donald Trump said he would slap a 10% tariff on the remaining $300 billion of Chinese imports starting September 1

Trump's tariffs sends Asia stocks dipping

South Korea fired back at Japan over a deepening trade dispute on Friday (August 2), pledging it would not be "defeated again" by its neighbour, laying bare decades-old animosity at the root of a row over fast-track export status.

South Korea's Moon pledges action against Japan's "unfair" trade move

The <a href="https://www.wionews.com/world/responsibility-for-what-happens-next-lies-with-japan-south-korea-president-moon-jae-in-on-trade-confrontation-240091">South Korean government</a> has launched a new learning website for companies puzzled by Japan's recent trade restrictions against the country amid growing confusion over changes of rules about buying Japanese goods.

The website&nbsp;is up and running since Thursday, a day before Japan decided to drop South Korea from the so-called "white list" of easy trade countries in midst of a growing dispute between the two countries over their wartime past.

"There have been myriads of requests from companies that need a clear picture of what getting removed from the white list means," a South Korean trade ministry official told Reuters on Friday, referring to the reason for the website.

The website titled "Know the Japanese restrictions Right" offers a list of sensitive items which can face tightened regulations and guidelines for companies to provide information to Japanese suppliers if they need approval.

Businessmen can also sign up for a face-to-face meeting with government officials via the website.

South Korea's removal from the favoured trade countries list may require South Korean firms to take extra administrative procedures to obtain import permits, potentially slowing down purchases of a wide range of Japanese goods that can be used for weapons production.

The country's President Moon Jae-in on Friday said South Korea would not be "defeated again" by its neighbour, laying bare decades-old animosity at the root of a row over fast-track export status.

"I can see challenges won't be small. Our companies and people have the capacity to overcome this ordeal...We can do this," Moon told a cabinet meeting.

The South Korean government has been hosting a series of seminars for industry groups from semiconductor sectors to the automobile industry as companies scramble to prepare for new trade environment with Japan.

"This is such a confusing time for everyone regardless of which industry you are in," said an official at a South Korean major electric car battery maker.

"The rules are so vague and confusing that almost no one knows how to comply and what to do. It's like an unopened black box," the official added, asking not to be named due to the sensitivity of the matter.

The South Korean government has launched a new learning website for companies puzzled by Japan's recent trade restrictions against the country amid growing confusion over changes of rules about buying Japanese goods.

The South Korean government has launched a new learning website for companies puzzled by Japan's recent trade restrictions against the country amid growing confusion over changes of rules about buying Japanese goods. The website is up and running since Thursday, a day before Japan decided to drop South Korea from the so-called "white list" of easy trade countries in midst of a growing dispute between the two countries over their wartime past. "There have been myriads of requests from companies that need a clear picture of what getting removed from the white list means," a South Korean trade ministry official told Reuters on Friday, referring to the reason for the website. The website titled "Know the Japanese restrictions Right" offers a list of sensitive items which can face tightened regulations and guidelines for companies to provide information to Japanese suppliers if they need approval. Businessmen can also sign up for a face-to-face meeting with government officials via the website. South Korea's removal from the favoured trade countries list may require South Korean firms to take extra administrative procedures to obtain import permits, potentially slowing down purchases of a wide range of Japanese goods that can be used for weapons production. The country's President Moon Jae-in on Friday said South Korea would not be "defeated again" by its neighbour, laying bare decades-old animosity at the root of a row over fast-track export status. "I can see challenges won't be small. Our companies and people have the capacity to overcome this ordeal...We can do this," Moon told a cabinet meeting. The South Korean government has been hosting a series of seminars for industry groups from semiconductor sectors to the automobile industry as companies scramble to prepare for new trade environment with Japan. "This is such a confusing time for everyone regardless of which industry you are in," said an official at a South Korean major electric car battery maker. "The rules are so vague and confusing that almost no one knows how to comply and what to do. It's like an unopened black box," the official added, asking not to be named due to the sensitivity of the matter.

South Korea launches 'Let's Learn Japan's Restrictions' website for puzzled businesses

The dollar charged to its highest in more than two years on Thursday after the <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/business-economy/stormy-sterling-sinks-again-stocks-wilt-before-fed-239448&amp;sa=U&amp;ved=2ahUKEwjO-ZbLuOHjAhUBr48KHSApDvgQFjAFegQIBBAC&amp;usg=AOvVaw3Y8jTTDaVY7qnK939Bej7w">Federal Reserve</a> spoiled hopes of a run of US interest rate cuts.

A blizzard of global data and events was going on, but it was Fed Chair Jerome Powell's remarks on Wednesday that set the markets running. Powell said the first US rate cut in over a decade was "not the beginning of a long series of rate cuts".

The dollar’s reaction said it all. The DXY index surged to its highest in more than two years, euro/dollar dropped below $1.11 for the first time since May 2017, and Brexit-hobbled sterling hit 30-month lows just above $1.21.

World stocks had recoiled overnight and emerging markets had their longest run of falls in almost a year.

"Markets interpreted the Fed’s communication as slightly hawkish and therefore further rate cuts in the immediate future were somewhat priced out," said David Milleker, senior economic advisor at Union Investment. "And the dollar strengthened. All in all, the Fed did not achieve what it presumably wanted."

US Treasuries were sold off as investors scaled back their pre-Fed expectations for at least 100 basis points of cuts in the near term. Yields on 10-year notes climbed as high as 2.058% in Europe from a US close of 2.007%.

WATCH VIDEO

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/dramatic-shift-in-federal-reserve-monetary-policy-239838/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>
</div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

Core eurozone bond yields were rising, too, although -0.428% German Bund levels were still extraordinary. "I didn’t say it’s just one rate cut," Powell had been careful to emphasise after Wednesday's 25-basis-point move.

Instead, he characterised it as "a mid-cycle adjustment to policy", citing signs of a global slowdown, US trade tensions and a desire to boost inflation.

Wall Street fell afterwards and E-minis futures for the S&amp;P 500 were pointing 0.15% lower.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.8%, extending losses for a fifth day to the lowest since mid-June and posting its biggest one-day percentage drop in a month.

Japan's Nikkei rose, reversing early declines. Australian shares declined 0.4%. Losses by Chinese shares ended down 0.8%.

"We believe the Fed is trying to thread the needle, balancing market jitters about slowing global growth with robust consumer spending and a strong job market in the US," said Nick Maroutsos, co-head of global bonds at Janus Henderson.

"In other words, by cutting just 25 bps, the Fed is trying to bolster market confidence while also keeping some dry powder in reserve in case of an economic shock."

Trade Talks

Adding to worries, the United States and China on Wednesday ended a brief round of talks without much progress in ending their year-long trade war.

Downbeat data and factory surveys on Thursday had also pointed to further weakness for Asia's trade-reliant economies.

South Korea's exports fell for an eighth straight month in July amid weak global demand and a dispute with Japan. New export orders shrank the most in about six years.

South Korea, the world's sixth-largest exporter, is the first major industrial economy to release trade data each month, providing an early assessment on the health of global demand.

Pressure on Chinese factories eased slightly, but manufacturing activity continued to shrink.

"The broader global trade dynamic remains a challenge," Morgan Stanley strategist Michael Zezas said. "Trade should continue to drag on corporate confidence, CapEx and global growth in the near term."

In Europe's foreign exchange markets, sterling dropped as low as $1.2101 before a Bank of England meeting that's expected to leave its 0.75% interest rate unchanged but result in plenty of interesting discussions.

Fears of a <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/britain-to-spend-an-extra-26-billion-on-no-deal-brexit-planning-239860&amp;sa=U&amp;ved=2ahUKEwjd24uDu-HjAhUW8XMBHSfID2IQFjAAegQIBhAC&amp;usg=AOvVaw05e85f7pwO51L5lCnpMiS3">no-deal Brexit</a> now that Boris Johnson is prime minister continue to afflict the pound, although it was fractionally higher against a weakening euro at 91.17 pence.

"Sterling remains vulnerable to a further escalation in Brexit tensions and we anticipate the market will likely discount higher risks of a ‘no deal’ outcome in the weeks ahead," said Roger Hallam, currency chief investment officer at JP Morgan Asset Management.

Elsewhere, the Aussie dollar slipped below key chart support of $0.6832 to as low as $0.6828, a level not seen since an early January "flash crash".

The kiwi hit a six-week trough of $0.6535 on expectations the Reserve Bank of New Zealand will cut rates next week.

US crude futures fell 76 cents to $57.82 per barrel after comments on the rating outlook. Brent was down 71 cents at $64.34.

Spot gold also fell, to $1,405.26.

The dollar charged to its highest in more than two years on Thursday after the Federal Reserve spoiled hopes of a run of US interest rate cuts. A blizzard of global data and events was going on, but it was Fed Chair Jerome Powell's remarks on Wednesday that set the markets running.

The dollar charged to its highest in more than two years on Thursday after the Federal Reserve spoiled hopes of a run of US interest rate cuts. A blizzard of global data and events was going on, but it was Fed Chair Jerome Powell's remarks on Wednesday that set the markets running. Powell said the first US rate cut in over a decade was "not the beginning of a long series of rate cuts". The dollar’s reaction said it all. The DXY index surged to its highest in more than two years, euro/dollar dropped below $1.11 for the first time since May 2017, and Brexit-hobbled sterling hit 30-month lows just above $1.21. World stocks had recoiled overnight and emerging markets had their longest run of falls in almost a year. "Markets interpreted the Fed’s communication as slightly hawkish and therefore further rate cuts in the immediate future were somewhat priced out," said David Milleker, senior economic advisor at Union Investment. "And the dollar strengthened. All in all, the Fed did not achieve what it presumably wanted." US Treasuries were sold off as investors scaled back their pre-Fed expectations for at least 100 basis points of cuts in the near term. Yields on 10-year notes climbed as high as 2.058% in Europe from a US close of 2.007%. WATCH VIDEO × Core eurozone bond yields were rising, too, although -0.428% German Bund levels were still extraordinary. "I didn’t say it’s just one rate cut," Powell had been careful to emphasise after Wednesday's 25-basis-point move. Instead, he characterised it as "a mid-cycle adjustment to policy", citing signs of a global slowdown, US trade tensions and a desire to boost inflation. Wall Street fell afterwards and E-minis futures for the S&P 500 were pointing 0.15% lower. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.8%, extending losses for a fifth day to the lowest since mid-June and posting its biggest one-day percentage drop in a month. Japan's Nikkei rose, reversing early declines. Australian shares declined 0.4%. Losses by Chinese shares ended down 0.8%. "We believe the Fed is trying to thread the needle, balancing market jitters about slowing global growth with robust consumer spending and a strong job market in the US," said Nick Maroutsos, co-head of global bonds at Janus Henderson. "In other words, by cutting just 25 bps, the Fed is trying to bolster market confidence while also keeping some dry powder in reserve in case of an economic shock." Trade Talks Adding to worries, the United States and China on Wednesday ended a brief round of talks without much progress in ending their year-long trade war. Downbeat data and factory surveys on Thursday had also pointed to further weakness for Asia's trade-reliant economies. South Korea's exports fell for an eighth straight month in July amid weak global demand and a dispute with Japan. New export orders shrank the most in about six years. South Korea, the world's sixth-largest exporter, is the first major industrial economy to release trade data each month, providing an early assessment on the health of global demand. Pressure on Chinese factories eased slightly, but manufacturing activity continued to shrink. "The broader global trade dynamic remains a challenge," Morgan Stanley strategist Michael Zezas said. "Trade should continue to drag on corporate confidence, CapEx and global growth in the near term." In Europe's foreign exchange markets, sterling dropped as low as $1.2101 before a Bank of England meeting that's expected to leave its 0.75% interest rate unchanged but result in plenty of interesting discussions. Fears of a no-deal Brexit now that Boris Johnson is prime minister continue to afflict the pound, although it was fractionally higher against a weakening euro at 91.17 pence. "Sterling remains vulnerable to a further escalation in Brexit tensions and we anticipate the market will likely discount higher risks of a ‘no deal’ outcome in the weeks ahead," said Roger Hallam, currency chief investment officer at JP Morgan Asset Management. Elsewhere, the Aussie dollar slipped below key chart support of $0.6832 to as low as $0.6828, a level not seen since an early January "flash crash". The kiwi hit a six-week trough of $0.6535 on expectations the Reserve Bank of New Zealand will cut rates next week. US crude futures fell 76 cents to $57.82 per barrel after comments on the rating outlook. Brent was down 71 cents at $64.34. Spot gold also fell, to $1,405.26.

Mind your backs, dollar coming through!

<a href="https://www.wionews.com/business-%26-economy/gold-prices-slip-for-sixth-session-as-dollar-trades-near-1-year-high-153068">Gold prices</a> firmed on Tuesday ahead of a meeting of the <a href="https://www.wionews.com/business-economy/nasdaq-ends-at-record-high-dollar-falls-as-us-fed-signals-possible-rate-cut-234814">US Federal Reserve</a> where it is expected to signal how big an interest rate cut the world's biggest economy could take.

Spot gold was up 0.1 per cent to1,427.85 dollars per ounce as of 0954 GMT. US gold futures were up 0.6 per cent at1,428.30 dollars per ounce.

"The big question is what the tone of the Fed will be tomorrow. Interest rates are overwhelmingly likely to be cut. It's just a question of by how much," said Mitsubishi analyst Jonathan Butler.&nbsp;

"Gold is still at 6-year highs. Although it has been close to1,450 dollars recently, it seems to have found a level around1,425 dollars."

Investors awaited cues on the Fed's two-day monetary policy meeting beginning later in the session, which is expected to result in a 25-basis point cut in interest rates. If implemented, it would be the central bank's first rate cut in a decade.

The bank would be joining peers such as the European Central Bank in signalling the need for rate cuts. The <a href="https://www.wionews.com/business-economy/asia-stocks-higher-ahead-of-fed-pound-pressured-by-fresh-brexit-pain-239341">Bank of Japan</a> has also said it would ease "without hesitation" if the economy lost momentum in order to achieve its inflation target.

Gains in the dollar index, which touched a two-month high of 98.206 on the back of a weaker sterling, helped cap the rise in bullion.

"Liquidity is still thin as traders seem to be holding back before the Fed gives its views on monetary policy," said Benjamin Lu, an analyst at Phillip Futures, adding that a firm dollar was putting pressure on gold prices.&nbsp;

US-China trade negotiations, which begin in Shanghai on Tuesday, were also in the spotlight, although expectations for progress during the two-day meeting are low, with the markets hoping the two sides can at least detail commitments for goodwill gestures.&nbsp;

On the technical side, spot gold remains neutral in a range of 1,412-1,427 dollars per ounce, and an escape could suggest a direction, according to Reuters technical analyst Wang Tao.&nbsp;

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.83 per cent to 824.89 tonnes on Monday from Friday.

Among other precious metals, silver rose 0.2 per cent to16.49 dollars, while platinum edged 0.2 per cent higher to 877.29dollars.

Palladium dropped 0.5 per cent to1,545.31 dollars per ounce, after touching a near two-week high in the previous session.

Gold prices firmed on Tuesday ahead of a meeting of the US Federal Reserve where it is expected to signal how big an interest rate cut the world's biggest economy could take.

Gold prices firmed on Tuesday ahead of a meeting of the US Federal Reserve where it is expected to signal how big an interest rate cut the world's biggest economy could take. Spot gold was up 0.1 per cent to1,427.85 dollars per ounce as of 0954 GMT. US gold futures were up 0.6 per cent at1,428.30 dollars per ounce. "The big question is what the tone of the Fed will be tomorrow. Interest rates are overwhelmingly likely to be cut. It's just a question of by how much," said Mitsubishi analyst Jonathan Butler. "Gold is still at 6-year highs. Although it has been close to1,450 dollars recently, it seems to have found a level around1,425 dollars." Investors awaited cues on the Fed's two-day monetary policy meeting beginning later in the session, which is expected to result in a 25-basis point cut in interest rates. If implemented, it would be the central bank's first rate cut in a decade. The bank would be joining peers such as the European Central Bank in signalling the need for rate cuts. The Bank of Japan has also said it would ease "without hesitation" if the economy lost momentum in order to achieve its inflation target. Gains in the dollar index, which touched a two-month high of 98.206 on the back of a weaker sterling, helped cap the rise in bullion. "Liquidity is still thin as traders seem to be holding back before the Fed gives its views on monetary policy," said Benjamin Lu, an analyst at Phillip Futures, adding that a firm dollar was putting pressure on gold prices. US-China trade negotiations, which begin in Shanghai on Tuesday, were also in the spotlight, although expectations for progress during the two-day meeting are low, with the markets hoping the two sides can at least detail commitments for goodwill gestures. On the technical side, spot gold remains neutral in a range of 1,412-1,427 dollars per ounce, and an escape could suggest a direction, according to Reuters technical analyst Wang Tao. Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.83 per cent to 824.89 tonnes on Monday from Friday. Among other precious metals, silver rose 0.2 per cent to16.49 dollars, while platinum edged 0.2 per cent higher to 877.29dollars. Palladium dropped 0.5 per cent to1,545.31 dollars per ounce, after touching a near two-week high in the previous session.

Gold firms ahead of expected Federal interest rate cut

Brewing <a href="https://www.wionews.com/business-economy/asia-stocks-higher-ahead-of-fed-pound-pressured-by-fresh-brexit-pain-239341">no-deal Brexit</a> worries sent the pound sinking towards a two-year low versus the euro and roughed up Irish bonds on Tuesday, while stock markets wilted before what is expected to be the first cut in rates since the financial crisis.

Europe's markets suffered a stormy start as the pound followed its worst day of the year with another 0.5% swoon against all the major currencies.

A blizzard of fiery talk on Monday that included the new UK Prime Minister Boris Johnson called his predecessor's Brexit plans dead and its new foreign minister labelling the European Union "stubborn" kept the slide intact.

<a href="https://www.wionews.com/world/uk-plays-brexit-hardball-with-stubborn-european-union-pound-falls-to-a-two-year-low-239235">Sterling fell</a> as far as $1.2120, which was its lowest against the dollar since March 2017, and to 91.85 pence per euro, the weakest since September 2017.

Options markets were pointing to more pain too. Three-month implied volatility, a contract that expires just before the October&nbsp;31 Brexit deadline, jumped to over 11 vols, the highest since before March 29, the original date for Britain to leave the European Union.

"The pound is in a very precarious state, it is as simple as that," said TD Securities' European head of currency strategy Ned Rumpeltin.

"We are now in a different regime," he said, referring to Johnson's explicit agenda of taking Britain out of the EU, whether or not transitional trading agreements are in place.

It was not just sterling reeling either.

Irish government bond yield spreads over Germany hit their widest levels in over a month at 24 basis points, on worries about the damage a no-deal Brexit would do to Ireland's economy.

Other eurozone government bond yields were holding near recent lows ahead of the Federal Reserve meeting which is expected to deliver a 25 basis point rate cut on Wednesday and potentially signal more on the way.

Germany's 10-year government bond yield was hovering near the minus 0.40% mark.

European shares slipped as grim forecasts from German chemicals and drugs giant Bayer and airline Lufthansa soured sentiment, although the weakness of the pound kept London's blue-chip FTSE index just about out of the red.

With concerns about global growth still bubbling among investors, a GfK survey also showed German consumer morale worsening for the third month in a row heading into August as trade disputes bit in Europe's biggest exporter.

"Most markets are down this morning," said Simona Gambarini, a markets economist at Capital Economics. "The S&amp;P closed lower yesterday. We have a few data releases regarding the eurozone that could push equity prices down but I think everyone is waiting for the Fed meeting."

Aussie Gold

Asia had been a bit more positive overnight.

Japan's Nikkei rose 0.4%, showing a limited reaction to the Bank of Japan's widely anticipated decision to stand pat on monetary policy. Shanghai rose 0.3% and Hong Kong's Hang Seng edged up 0.2%.

Australian stocks stole the glory again though with another record high, as buoyant mining shares added to tech-driven gains the previous day.

The BOJ added that it would ease policy again "without hesitation" if the economy loses momentum for achieving the central bank's 2% inflation target.

Also drawing some attention were US-China trade negotiations which begin in Shanghai on Tuesday, although expectations for progress during the two-day meeting are low with the markets hoping the two sides can at least detail commitments for "goodwill" gestures.

Among commodities, crude oil prices extended the previous day's gains, with the Fed's expected easing fuelling optimism that it would boost the economy and fuel demand in the world's biggest oil consumer.

US crude futures were up 0.65% at $57.24 per barrel and Brent crude added 0.6% to $64.09. Gold was down 0.1% at $1,425 per ounce.

Brewing no-deal Brexit worries sent the pound sinking towards a two-year low versus the euro and roughed up Irish bonds on Tuesday, while stock markets wilted before what is expected to be the first cut in rates since the financial crisis.

Brewing no-deal Brexit worries sent the pound sinking towards a two-year low versus the euro and roughed up Irish bonds on Tuesday, while stock markets wilted before what is expected to be the first cut in rates since the financial crisis. Europe's markets suffered a stormy start as the pound followed its worst day of the year with another 0.5% swoon against all the major currencies. A blizzard of fiery talk on Monday that included the new UK Prime Minister Boris Johnson called his predecessor's Brexit plans dead and its new foreign minister labelling the European Union "stubborn" kept the slide intact. Sterling fell as far as $1.2120, which was its lowest against the dollar since March 2017, and to 91.85 pence per euro, the weakest since September 2017. Options markets were pointing to more pain too. Three-month implied volatility, a contract that expires just before the October 31 Brexit deadline, jumped to over 11 vols, the highest since before March 29, the original date for Britain to leave the European Union. "The pound is in a very precarious state, it is as simple as that," said TD Securities' European head of currency strategy Ned Rumpeltin. "We are now in a different regime," he said, referring to Johnson's explicit agenda of taking Britain out of the EU, whether or not transitional trading agreements are in place. It was not just sterling reeling either. Irish government bond yield spreads over Germany hit their widest levels in over a month at 24 basis points, on worries about the damage a no-deal Brexit would do to Ireland's economy. Other eurozone government bond yields were holding near recent lows ahead of the Federal Reserve meeting which is expected to deliver a 25 basis point rate cut on Wednesday and potentially signal more on the way. Germany's 10-year government bond yield was hovering near the minus 0.40% mark. European shares slipped as grim forecasts from German chemicals and drugs giant Bayer and airline Lufthansa soured sentiment, although the weakness of the pound kept London's blue-chip FTSE index just about out of the red. With concerns about global growth still bubbling among investors, a GfK survey also showed German consumer morale worsening for the third month in a row heading into August as trade disputes bit in Europe's biggest exporter. "Most markets are down this morning," said Simona Gambarini, a markets economist at Capital Economics. "The S&P closed lower yesterday. We have a few data releases regarding the eurozone that could push equity prices down but I think everyone is waiting for the Fed meeting." Aussie Gold Asia had been a bit more positive overnight. Japan's Nikkei rose 0.4%, showing a limited reaction to the Bank of Japan's widely anticipated decision to stand pat on monetary policy. Shanghai rose 0.3% and Hong Kong's Hang Seng edged up 0.2%. Australian stocks stole the glory again though with another record high, as buoyant mining shares added to tech-driven gains the previous day. The BOJ added that it would ease policy again "without hesitation" if the economy loses momentum for achieving the central bank's 2% inflation target. Also drawing some attention were US-China trade negotiations which begin in Shanghai on Tuesday, although expectations for progress during the two-day meeting are low with the markets hoping the two sides can at least detail commitments for "goodwill" gestures. Among commodities, crude oil prices extended the previous day's gains, with the Fed's expected easing fuelling optimism that it would boost the economy and fuel demand in the world's biggest oil consumer. US crude futures were up 0.65% at $57.24 per barrel and Brent crude added 0.6% to $64.09. Gold was down 0.1% at $1,425 per ounce.

Stormy sterling sinks again, stocks wilt before Fed

Malaysia's Petroliam Nasional Bhd (Petronas) and a consortium led by Japan's JXTG Holdings Inc are among the companies interested in buying a stake in India's Bina oil refinery, a source close to the matter said.

The Bina plant in central India, capable of processing 156,000 barrels per day (BPD) of crude oil, is operated by Bharat Oman Refineries Ltd (BORL), a 50-50 joint venture between Oman Oil Co and state-run Bharat Petroleum Corp (BPCL).

"There are a new set of companies who have approached BPCL for a stake in its Bina refinery," said the source, who asked not to be named as the discussions are private.

BPCL plans to double the capacity of the refinery in the next five years and build a petrochemical complex that would require an investment of about 500 billion rupees ($7.24 billion), the source said.

Bharat Petroleum did not respond to a request for comment. Petronas and JXTG were not immediately reachable for comment.

Malaysia's Petroliam Nasional Bhd (Petronas) and a consortium led by Japan's JXTG Holdings Inc are among the companies interested in buying a stake in India's Bina oil refinery, a source close to the matter said.

Malaysia's Petroliam Nasional Bhd (Petronas) and a consortium led by Japan's JXTG Holdings Inc are among the companies interested in buying a stake in India's Bina oil refinery, a source close to the matter said. The Bina plant in central India, capable of processing 156,000 barrels per day (BPD) of crude oil, is operated by Bharat Oman Refineries Ltd (BORL), a 50-50 joint venture between Oman Oil Co and state-run Bharat Petroleum Corp (BPCL). "There are a new set of companies who have approached BPCL for a stake in its Bina refinery," said the source, who asked not to be named as the discussions are private. BPCL plans to double the capacity of the refinery in the next five years and build a petrochemical complex that would require an investment of about 500 billion rupees ($7.24 billion), the source said. Bharat Petroleum did not respond to a request for comment. Petronas and JXTG were not immediately reachable for comment.

Malaysia and Japan likely to buy stakes in India's Bina oil refinery

Asian share prices opened a tad lower on Friday on mixed US earnings reports and the euro held above two-year lows struck overnight after the European Central Bank held interest rates steady, though officials said a cut was certain in September.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.15% while Japan's Nikkei dipped 0.3%.

Wall Street shares fell from record highs on Thursday, with the S&amp;P 500 losing 0.53%, following a flurry of downbeat quarterly results from Ford Motor and other companies.

But several companies that announced their results after the market had closed on Thursday generally beat market expectations, and their shares rose in after-hours trade.

Google parent Alphabet rose 8.4%, Intel Corp 5.6% and Starbucks 6.4%. Amazon, however, dipped 1.7% on its first profit miss in two years.

US stock futures were little changed in Asia.

"Some capital goods makers have reported soft earnings but otherwise US earnings have been generally good, partly because investors had already lowered their expectations," said Hitoshi Asaoka, senior strategist at Asset Management One.

"Still, with US share prices already at record levels, further gains are likely to be limited unless we see clearer signs of recovery in global demand," he said.

A rally in global bonds ran out of steam after European Central Bank President Mario Draghi cautioned about pulling the trigger too quickly even though he signalled another round of monetary easing.

ECB Officials told Reuters after the meeting that an interest rate cut in September appeared certain, while government bond purchases and a revamped policy message were also likely.

The euro's overnight index swaps are pricing in a cut of more than 10 basis points in September.

The 10-year German government bond yield initially hit a record low of minus 0.463 per cent but ended the day up slightly at minus 0.407 per cent.

The US 10-year Treasuries yield also rose 3 basis points to 2.079 per cent on Thursday and traded at 2.107 per cent in the following Asian session.

Also helping to stem falls in bond yields, new orders for key US-made capital goods surged in June, suggesting some improvement in business investment.

In the currency market, the euro bounced back to at $1.11465 in Asian trade, after sinking to $1.1101 on Thursday, its lowest since May 2017.

The yen was little changed against the dollar at 108.67 yen per dollar.

Oil prices held firm on rising tensions between the West and Iran and a big decline in US crude stockpiles, though gains were held in check by worries about slowing growth in major economies.

Asian share prices opened a tad lower on Friday on mixed US earnings reports and the euro held above two-year lows struck overnight after the European Central Bank held interest rates steady, though officials said a cut was certain in September.

Asian share prices opened a tad lower on Friday on mixed US earnings reports and the euro held above two-year lows struck overnight after the European Central Bank held interest rates steady, though officials said a cut was certain in September. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.15% while Japan's Nikkei dipped 0.3%. Wall Street shares fell from record highs on Thursday, with the S&P 500 losing 0.53%, following a flurry of downbeat quarterly results from Ford Motor and other companies. But several companies that announced their results after the market had closed on Thursday generally beat market expectations, and their shares rose in after-hours trade. Google parent Alphabet rose 8.4%, Intel Corp 5.6% and Starbucks 6.4%. Amazon, however, dipped 1.7% on its first profit miss in two years. US stock futures were little changed in Asia. "Some capital goods makers have reported soft earnings but otherwise US earnings have been generally good, partly because investors had already lowered their expectations," said Hitoshi Asaoka, senior strategist at Asset Management One. "Still, with US share prices already at record levels, further gains are likely to be limited unless we see clearer signs of recovery in global demand," he said. A rally in global bonds ran out of steam after European Central Bank President Mario Draghi cautioned about pulling the trigger too quickly even though he signalled another round of monetary easing. ECB Officials told Reuters after the meeting that an interest rate cut in September appeared certain, while government bond purchases and a revamped policy message were also likely. The euro's overnight index swaps are pricing in a cut of more than 10 basis points in September. The 10-year German government bond yield initially hit a record low of minus 0.463 per cent but ended the day up slightly at minus 0.407 per cent. The US 10-year Treasuries yield also rose 3 basis points to 2.079 per cent on Thursday and traded at 2.107 per cent in the following Asian session. Also helping to stem falls in bond yields, new orders for key US-made capital goods surged in June, suggesting some improvement in business investment. In the currency market, the euro bounced back to at $1.11465 in Asian trade, after sinking to $1.1101 on Thursday, its lowest since May 2017. The yen was little changed against the dollar at 108.67 yen per dollar. Oil prices held firm on rising tensions between the West and Iran and a big decline in US crude stockpiles, though gains were held in check by worries about slowing growth in major economies.

Asian shares dip on mixed US earnings, euro off 2-year low as ECB holds

Oil prices rose on Friday and were on track for a weekly increase as geopolitical tensions over Iran remained unresolved, although flagging prospects for global economic growth amid the <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/trade-war-like-the-one-going-on-between-us-and-china-foolish-thailand-ambassador-at-wion-world-order-238434&amp;sa=U&amp;ved=2ahUKEwij9_GHsNLjAhUbHo8KHfTpAw0QFjADegQIDxAC&amp;usg=AOvVaw3q6V_pmXlrHO0FOtaqNfXk">US-China trade war</a> capped gains.

Brent crude futures were up 23 cents at $63.62 per barrel at 0922 GMT, equivalent to a weekly rise of around 1.8%. They fell 6% last week.

US West Texas Intermediate crude was 25 cents higher at $56.27 a barrel, a weekly gain of 1.1%. It fell to 7.5% last week.

Tensions remained high around the Strait of Hormuz, the world's most important oil passageway, as Iran refused to release a British-flagged tanker it seized last week in the Gulf.

US Secretary of State Mike Pompeo said Washington had asked Japan, France, Germany, South Korea, Australia, and other nations to join a maritime security initiative in the Middle East so oil and other products can flow through the strait.

However, oil prices' reaction to the strains in the Gulf has been relatively muted. "It appears that the majority of market participants do not expect a military conflict that would hamper oil shipments," Commerzbank analyst Carsten Fritsch said.

Prices also drew support from a crude inventory draw in the United States, but gains were limited as the fall appeared to have been largely anticipated. The US production in the Gulf of Mexico was still feeling the effects of Hurricane Barry.

WATCH:&nbsp;Iran-UK tanker tensions: Iran releases 9 crew members

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/iran-uk-tanker-tensions-iran-releases-9-crew-members-238525/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>
</div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

"Several indicators pointing to a slowdown of global oil demand growth appear to have taken over market sentiment," Jefferies analyst Jason Gammel said.

Reuters polls taken July 1-24 showed the growth outlook for nearly 90% of the more than 45 economies surveyed was downgraded or left unchanged. That applied not just to this year but also in 2020.

"Growing challenges in the macroeconomic environment have kept bullish bets in check as risk appetites remain soft over potential weakness in global fuel demand," said Benjamin Lu, commodities analyst at Singapore-based Phillip Futures.

The slowdown in global manufacturing and trade, and the associated hit to oil consumption, largely stems from a US-China trade war that has rumbled on over the last year.

Trade talks between the two countries broke down in May after nearing an agreement. Next week, the top US and Chinese negotiators meet for the first time since then. Any positive outcome of the meeting is expected to boost oil prices.

Oil prices rose on Friday and were on track for a weekly increase as geopolitical tensions over Iran remained unresolved, although flagging prospects for global economic growth amid the US-China trade war capped gains.

Oil prices rose on Friday and were on track for a weekly increase as geopolitical tensions over Iran remained unresolved, although flagging prospects for global economic growth amid the US-China trade war capped gains. Brent crude futures were up 23 cents at $63.62 per barrel at 0922 GMT, equivalent to a weekly rise of around 1.8%. They fell 6% last week. US West Texas Intermediate crude was 25 cents higher at $56.27 a barrel, a weekly gain of 1.1%. It fell to 7.5% last week. Tensions remained high around the Strait of Hormuz, the world's most important oil passageway, as Iran refused to release a British-flagged tanker it seized last week in the Gulf. US Secretary of State Mike Pompeo said Washington had asked Japan, France, Germany, South Korea, Australia, and other nations to join a maritime security initiative in the Middle East so oil and other products can flow through the strait. However, oil prices' reaction to the strains in the Gulf has been relatively muted. "It appears that the majority of market participants do not expect a military conflict that would hamper oil shipments," Commerzbank analyst Carsten Fritsch said. Prices also drew support from a crude inventory draw in the United States, but gains were limited as the fall appeared to have been largely anticipated. The US production in the Gulf of Mexico was still feeling the effects of Hurricane Barry. WATCH: Iran-UK tanker tensions: Iran releases 9 crew members × "Several indicators pointing to a slowdown of global oil demand growth appear to have taken over market sentiment," Jefferies analyst Jason Gammel said. Reuters polls taken July 1-24 showed the growth outlook for nearly 90% of the more than 45 economies surveyed was downgraded or left unchanged. That applied not just to this year but also in 2020. "Growing challenges in the macroeconomic environment have kept bullish bets in check as risk appetites remain soft over potential weakness in global fuel demand," said Benjamin Lu, commodities analyst at Singapore-based Phillip Futures. The slowdown in global manufacturing and trade, and the associated hit to oil consumption, largely stems from a US-China trade war that has rumbled on over the last year. Trade talks between the two countries broke down in May after nearing an agreement. Next week, the top US and Chinese negotiators meet for the first time since then. Any positive outcome of the meeting is expected to boost oil prices.

Oil prices rise as Iran tensions remain unresolved

When Saudi Aramco was on the verge of a deal last year to buy a stake in an Indian oil refinery, its boss quickly boarded a company jet in Paris and flew to New Delhi.

Chief executive Amin Nasser arrived unannounced early on April 11, 2018, finalised the agreement and signed it later that day. Negotiators had just finished hammering out the details.

His last-minute flight, after a business trip to France with <a href="https://www.wionews.com/world/saudi-crown-prince-mohammed-bin-salman-doing-spectacular-job-donald-trump-231336">Crown Prince Mohammed bin Salman</a>, underlined the importance of the deal both to <a href="https://www.wionews.com/world/trump-vetoes-measures-blocking-arms-sales-to-saudi-arabia-uae-238285">Saudi Arabia</a> and its huge state oil firm.

The planned investment in the $44-billion refinery and petrochemical project on India’s west coast is a prime example of how Aramco is trying to squeeze value out of each barrel of oil it produces by snapping up refining capacity, mainly in fast-growing Asia.

But it also underlines the challenge Saudi Arabia faces in reducing its heavy economic reliance on oil. The results of its programme to diversify have been mixed, some projects are moving slowly and others are too ambitious, economic and energy analysts say.

Prince Mohammed's stated goal of being able to "live without oil" by as early as 2020 looks set to be missed.

"Saudi Arabia's oil addiction is as strong as ever...economically, of course, the Saudi economy runs on oil. Oil still dominates GDP, exports and government revenues," said Jim Krane, an energy fellow at Rice University's Baker Institute.

"That said, Saudi Arabia is changing its relationship with oil. The dependence remains. But the kingdom is squeezing more value out of its oil," he said.

The slow progress means the Saudi economy is likely to remain hostage to oil prices for longer than planned. Any delay in implementing change also risks denting Prince Mohammed's image as a reformer.

Securing the future

Announcing his plan three years ago, the Crown Prince said Saudi Arabia must end its "oil addiction" to ensure the world's biggest oil exporter and second-largest producer cannot be "at the mercy of commodity price volatility or external markets."

He spoke after a fall in crude oil prices boosted the Saudi fiscal deficit to about 15 per cent of gross domestic product in 2015, slowing government spending and economic growth.

This year the deficit could hit 7 per cent of GDP, according to the International Monetary Fund, as oil-related growth slows following production cuts led by the Organization of the Petroleum Exporting Countries.

Aramco is central to the Crown Prince's reform plan in several ways, not least because its planned partial privatisation will generate income for the reforms.

The company has also been involved in most of the kingdom's high-profile deals in the last two years as it increased investment in refining and petrochemicals.

In that time, Aramco has announced at least $50 billion worth of investments in Saudi Arabia, Asia and the United States. It aims to almost triple its chemicals production to 34 million metric tons per year by 2030 and raise its global refining capacity to 8-10 million barrels per day (bpd) from more than 5 million bpd.

In March last year, Aramco finalised a deal to buy a $7billion stake in a refinery and petrochemicals project with Malaysia's Petronas. A month later, Nasser and a consortium of Indian companies signed the initial deal that would give Aramco a stake in the planned 1.2 million bpd refinery in India's western Maharashtra state.

In February of this year, Aramco signed a $10 billion deal for a refining and petrochemical complex in China. Last month it signed 12 deals with South Korea worth billions of dollars, ranging from shipbuilding to an expansion of a refinery owned by Aramco.

"This is what I call the back to basics approach to economic diversification in the Gulf," said Robin Mills, chief executive of energy consultancy Qamar Energy in Dubai. "The energy industry has the assets, capital and skills, so it's the engine of new projects refining, petrochemicals, gas and so on."

&nbsp;

&nbsp;

When Saudi Aramco was on the verge of a deal last year to buy a stake in an Indian oil refinery, its boss quickly boarded a company jet in Paris and flew to New Delhi.

When Saudi Aramco was on the verge of a deal last year to buy a stake in an Indian oil refinery, its boss quickly boarded a company jet in Paris and flew to New Delhi. Chief executive Amin Nasser arrived unannounced early on April 11, 2018, finalised the agreement and signed it later that day. Negotiators had just finished hammering out the details. His last-minute flight, after a business trip to France with Crown Prince Mohammed bin Salman, underlined the importance of the deal both to Saudi Arabia and its huge state oil firm. The planned investment in the $44-billion refinery and petrochemical project on India’s west coast is a prime example of how Aramco is trying to squeeze value out of each barrel of oil it produces by snapping up refining capacity, mainly in fast-growing Asia. But it also underlines the challenge Saudi Arabia faces in reducing its heavy economic reliance on oil. The results of its programme to diversify have been mixed, some projects are moving slowly and others are too ambitious, economic and energy analysts say. Prince Mohammed's stated goal of being able to "live without oil" by as early as 2020 looks set to be missed. "Saudi Arabia's oil addiction is as strong as ever...economically, of course, the Saudi economy runs on oil. Oil still dominates GDP, exports and government revenues," said Jim Krane, an energy fellow at Rice University's Baker Institute. "That said, Saudi Arabia is changing its relationship with oil. The dependence remains. But the kingdom is squeezing more value out of its oil," he said. The slow progress means the Saudi economy is likely to remain hostage to oil prices for longer than planned. Any delay in implementing change also risks denting Prince Mohammed's image as a reformer. Securing the future Announcing his plan three years ago, the Crown Prince said Saudi Arabia must end its "oil addiction" to ensure the world's biggest oil exporter and second-largest producer cannot be "at the mercy of commodity price volatility or external markets." He spoke after a fall in crude oil prices boosted the Saudi fiscal deficit to about 15 per cent of gross domestic product in 2015, slowing government spending and economic growth. This year the deficit could hit 7 per cent of GDP, according to the International Monetary Fund, as oil-related growth slows following production cuts led by the Organization of the Petroleum Exporting Countries. Aramco is central to the Crown Prince's reform plan in several ways, not least because its planned partial privatisation will generate income for the reforms. The company has also been involved in most of the kingdom's high-profile deals in the last two years as it increased investment in refining and petrochemicals. In that time, Aramco has announced at least $50 billion worth of investments in Saudi Arabia, Asia and the United States. It aims to almost triple its chemicals production to 34 million metric tons per year by 2030 and raise its global refining capacity to 8-10 million barrels per day (bpd) from more than 5 million bpd. In March last year, Aramco finalised a deal to buy a $7billion stake in a refinery and petrochemicals project with Malaysia's Petronas. A month later, Nasser and a consortium of Indian companies signed the initial deal that would give Aramco a stake in the planned 1.2 million bpd refinery in India's western Maharashtra state. In February of this year, Aramco signed a $10 billion deal for a refining and petrochemical complex in China. Last month it signed 12 deals with South Korea worth billions of dollars, ranging from shipbuilding to an expansion of a refinery owned by Aramco. "This is what I call the back to basics approach to economic diversification in the Gulf," said Robin Mills, chief executive of energy consultancy Qamar Energy in Dubai. "The energy industry has the assets, capital and skills, so it's the engine of new projects refining, petrochemicals, gas and so on."

Old habits die hard: Saudi Arabia struggles to end oil addiction

The medals for the Tokyo 2020 Olympics were unveiled on Wednesday with exactly one year to go until next year's Games.

The unveiling of the medals, designed by Junichi Kawanishi, was the main attraction of an extravagant ceremony in the Japanese capital to commemorate the landmark.

The event was attended by International Olympic Committee President Thomas Bach and Japanese Prime Minister Shinzo Abe.

The medals, which are 85 millimetres in diameter, feature Greek goddess of victory Nike in their design along with the Olympic symbol and are made from recycled metals, collected from 6.21 million electronic devices donated across Japan.

Abe said he hoped next year's Games would have a similar impact as the 1964 Summer Games held in Tokyo.

"Sports brings the world together and it affords equal opportunities to all. That is what sports are about," said Abe. "Fifty-five years ago we learned that when we hosted it in Tokyo before.

"Next year we want to demonstrate that again and we want this to be an opportunity where we can do that."

Bach reiterated that Tokyo is the best-prepared city he has ever seen ahead of an Olympic Games.

"It will be a wonderful and unique moment for our gracious Japanese hosts. For you to show the world the best of Japan," added Bach.

Organisers believe they are on track to deliver a world-class sporting event next year and with 3.22 million tickets already sold and over 200,000 people applying to be volunteers, engagement in Japan is unprecedented.

The only reminder of the issues in the build-up to the Games on Wednesday was the presence of new Japanese Olympic Committee (JOC) President Yasuhiro Yamashita on stage with Bach and Abe.

Yamashita took over at the JOC last month, following the resignation of Tsunekazu Takeda, who is being investigated for suspected corruption related to the Tokyo 2020 bid.

The medals for the Tokyo 2020 Olympics were unveiled on Wednesday with exactly one year to go until next year's Games. The unveiling of the medals, designed by Junichi Kawanishi, was the main attraction of an extravagant ceremony in the Japanese capital to commemorate the landmark.

The medals for the Tokyo 2020 Olympics were unveiled on Wednesday with exactly one year to go until next year's Games. The unveiling of the medals, designed by Junichi Kawanishi, was the main attraction of an extravagant ceremony in the Japanese capital to commemorate the landmark. The event was attended by International Olympic Committee President Thomas Bach and Japanese Prime Minister Shinzo Abe. The medals, which are 85 millimetres in diameter, feature Greek goddess of victory Nike in their design along with the Olympic symbol and are made from recycled metals, collected from 6.21 million electronic devices donated across Japan. Abe said he hoped next year's Games would have a similar impact as the 1964 Summer Games held in Tokyo. "Sports brings the world together and it affords equal opportunities to all. That is what sports are about," said Abe. "Fifty-five years ago we learned that when we hosted it in Tokyo before. "Next year we want to demonstrate that again and we want this to be an opportunity where we can do that." Bach reiterated that Tokyo is the best-prepared city he has ever seen ahead of an Olympic Games. "It will be a wonderful and unique moment for our gracious Japanese hosts. For you to show the world the best of Japan," added Bach. Organisers believe they are on track to deliver a world-class sporting event next year and with 3.22 million tickets already sold and over 200,000 people applying to be volunteers, engagement in Japan is unprecedented. The only reminder of the issues in the build-up to the Games on Wednesday was the presence of new Japanese Olympic Committee (JOC) President Yasuhiro Yamashita on stage with Bach and Abe. Yamashita took over at the JOC last month, following the resignation of Tsunekazu Takeda, who is being investigated for suspected corruption related to the Tokyo 2020 bid.

Tokyo Olympics 2020 medals unveiled a year before Games

Russia's embassy in Seoul on Wednesday denied that Moscow had formally apologised over an alleged airspace violation the previous day after South Korea said that Russia had expressed "deep regret" while blaming an equipment malfunction.

A Russian military aircraft entered airspace near a group of islets claimed by both South Korea and Japan on Tuesday, during a long-range joint air patrol by Russian and Chinese aircraft, according to South Korea and Japan, which both scrambled fighter jets in response.

South Korean warplanes fired flares and hundreds of warning shots near the Russian aircraft, and the incident triggered a round of diplomatic protests by countries in the region.

An unidentified <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/india-news/russian-government-unable-to-find-any-documents-on-whereabouts-of-subhash-chandra-bose-mea-238154&amp;sa=U&amp;ved=2ahUKEwjfwJnPpc3jAhVMHo8KHd8VDl0QFjAIegQIAhAC&amp;usg=AOvVaw0dQPd-EitX4eTCLQb6BYH5">Russian</a> military attache in Seoul told South Korean officials that the military plane appeared to have "entered an unplanned area due to a device malfunction", said Yoon Do-han, a press secretary at South Korea's presidential office.

"Russia has conveyed its deep regret over the incident and said its defence ministry would immediately launch an investigation and take all necessary steps," Yoon said.

"The officer said such a situation would have never occurred if it followed the initially planned route."

It was not immediately clear if Yoon meant the attache was speaking officially on behalf of the Russian government but Russia's embassy in Seoul denied that it had apologised.

"The Russian side did not make an official apology," the embassy in Seoul said, adding it had noted many inaccuracies in the comments by South Korea, Interfax reported.

Russia's public statements on the issue have not mentioned any technical problems, nor has Russia announced any investigation or acknowledged a violation of South Korean air space.

South Korea's defence ministry said that after initially admitting a possible mistake and expressing regret on Tuesday, Russian officials on Wednesday sent South Korea an official document stating that its aircraft did not violate any air space.

WATCH:&nbsp;Russia expresses regret over South Korea airspace violation

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/russia-expresses-regret-over-south-korea-airspace-violation-238139/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>
</div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

Russia also accused South Korean pilots of threatening the safety of Russian aircraft.

An official at South Korea's defence ministry told reporters on Wednesday that it believed the intrusion could not have resulted from a system error.

He did not elaborate but said the two countries would hold working-level talks to discuss a Russian request to share information on the incident.

The incident came at a delicate time for a region that has for years been overshadowed by hostility between the United States and North Korea and has recently seen a flare-up in the tension between South Korea and Japan.

While troops and naval ships from Russia and <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/opinions/belt-and-road-projects-china-expands-its-anti-corruption-campaign-238093&amp;sa=U&amp;ved=2ahUKEwjfwJnPpc3jAhVMHo8KHd8VDl0QFjAJegQIARAC&amp;usg=AOvVaw0j0I01eE8G-eHsfymlTIwH">China</a> have taken part in joint war games before, they have not conducted such air patrols in the Asia-Pacific region together, according to Russia's Ministry of Defence.

China's defence ministry said on Wednesday that China and Russia did not enter territorial sky of any other country during their joint patrols on Tuesday.

South Korea and Japan scrambled fighter jets because both claim sovereignty over the disputed islets called Dokdo in Korea and Takeshima in Japan.

The two US&nbsp;allies are mired in a deepening political and trade dispute, which fanned concerns that it might undercut three-way security cooperation to fend off North Korea's nuclear threats.

The incident also coincided with the visit of the US&nbsp;national security adviser John Bolton to South Korea.

Bolton and his counterpart, Chung Eui-Yong, discussed the airspace breach during a meeting on Wednesday and vowed close consultations in case of more such incidents, South Korea's presidential Blue House said in a statement.

Russia's embassy in Seoul on Wednesday denied that Moscow had formally apologised over an alleged airspace violation the previous day after South Korea said that Russia had expressed "deep regret" while blaming an equipment malfunction.

Russia's embassy in Seoul on Wednesday denied that Moscow had formally apologised over an alleged airspace violation the previous day after South Korea said that Russia had expressed "deep regret" while blaming an equipment malfunction. A Russian military aircraft entered airspace near a group of islets claimed by both South Korea and Japan on Tuesday, during a long-range joint air patrol by Russian and Chinese aircraft, according to South Korea and Japan, which both scrambled fighter jets in response. South Korean warplanes fired flares and hundreds of warning shots near the Russian aircraft, and the incident triggered a round of diplomatic protests by countries in the region. An unidentified Russian military attache in Seoul told South Korean officials that the military plane appeared to have "entered an unplanned area due to a device malfunction", said Yoon Do-han, a press secretary at South Korea's presidential office. "Russia has conveyed its deep regret over the incident and said its defence ministry would immediately launch an investigation and take all necessary steps," Yoon said. "The officer said such a situation would have never occurred if it followed the initially planned route." It was not immediately clear if Yoon meant the attache was speaking officially on behalf of the Russian government but Russia's embassy in Seoul denied that it had apologised. "The Russian side did not make an official apology," the embassy in Seoul said, adding it had noted many inaccuracies in the comments by South Korea, Interfax reported. Russia's public statements on the issue have not mentioned any technical problems, nor has Russia announced any investigation or acknowledged a violation of South Korean air space. South Korea's defence ministry said that after initially admitting a possible mistake and expressing regret on Tuesday, Russian officials on Wednesday sent South Korea an official document stating that its aircraft did not violate any air space. WATCH: Russia expresses regret over South Korea airspace violation × Russia also accused South Korean pilots of threatening the safety of Russian aircraft. An official at South Korea's defence ministry told reporters on Wednesday that it believed the intrusion could not have resulted from a system error. He did not elaborate but said the two countries would hold working-level talks to discuss a Russian request to share information on the incident. The incident came at a delicate time for a region that has for years been overshadowed by hostility between the United States and North Korea and has recently seen a flare-up in the tension between South Korea and Japan. While troops and naval ships from Russia and China have taken part in joint war games before, they have not conducted such air patrols in the Asia-Pacific region together, according to Russia's Ministry of Defence. China's defence ministry said on Wednesday that China and Russia did not enter territorial sky of any other country during their joint patrols on Tuesday. South Korea and Japan scrambled fighter jets because both claim sovereignty over the disputed islets called Dokdo in Korea and Takeshima in Japan. The two US allies are mired in a deepening political and trade dispute, which fanned concerns that it might undercut three-way security cooperation to fend off North Korea's nuclear threats. The incident also coincided with the visit of the US national security adviser John Bolton to South Korea. Bolton and his counterpart, Chung Eui-Yong, discussed the airspace breach during a meeting on Wednesday and vowed close consultations in case of more such incidents, South Korea's presidential Blue House said in a statement.

Did not make an apology: Russia on airspace violation dispute with South Korea

US ride-hailing company <a href="https://www.wionews.com/world/opinion-ubers-latest-ai-bid-could-lead-to-some-serious-consequences---144040">Uber</a> is launching a freight platform in Germany, taking on local technology startups in a race to grab a share of Europe's $500 billion trucking market.

Germany will be Uber Freight's second market to go live on the continent after the Netherlands, an executive told Reuters, with further expansion in prospect once operations are running smoothly in Europe's largest economy.

In the United States, Uber Freight already connects 48 states and generates more than $125 million in quarterly revenues.

Under maverick founder Travis Kalanick, Uber's earlier bid to establish its ride-hailing services in <a href="https://www.wionews.com/world/iran-must-stick-to-nuclear-commitments-warn-germany-uk-over-enriched-uranium-row-228119">Germany</a> met intractable opposition from taxi companies, politicians and the courts.

This time, led by Kalanick's successor Dara Khosrowshawi, Uber has consulted German officials and industry to win support for its freight business, said Daniel Buczkowski, Uber Freight's head of European expansion.

"After the change in leadership, we engaged in doing the right thing," Buczkowski, who is German, told Reuters.

Uber will compete with local players, including Berlin-based startup sender, which has raised $70 million from private equity house Lakestar and other investors at a $300 million valuation, and which already has a wider presence in Europe.

Other technology players in the freight forwarding sector include Flexport, a full-service platform based in San Francisco that raised $1 billion earlier this year from investors led by Japan's Softbank Group.

UK-based Zencargo and FreightHub, which like the sender is headquartered in Berlin, have also taken in investments of late.

Buczkowski sees Uber Freight's edge in its worldwide reach and proven technology. "As a global company we have the bandwidth to constantly innovate and create new products and features that support the entire marketplace," he said.

The freight platforms aim to digitalise an industry still dominated by firms running 10 or fewer trucks and to improve efficiency trucks are empty for 21 per cent of the distance they travel.

Other gains can come from real-time tracking of consignments, and the automation of payments in an industry where trucking firms often waste weeks chasing up invoices.

"The key to getting a lot of value out of this industry is understanding how to use those empty kilometres," said Nicolaus Schefenacker, a co-founder of the sender, which was set up in 2016.

He told Reuters that, as its network expanded, it was easier to model and forecast traffic flows to ensure consignments found the right truck at the right price. Although the freight tech sector is crowded, the market is segmented and the sender sees a clear opportunity in the so-called full-truckload market.

"The market is so huge that I think a lot of players are able to coexist. That's also the way we think about Uber Freight," Schefenacker told Reuters.

Unlike Uber's ride-hailing app or its food-delivery service, Uber Freight will operate as a middle-man in a market with an established pricing structure.

It will make money from the margin between the price paid by the shipper and the amount it pays on to the trucker, insulating it from the type of complaints made by many ride-hailing drivers who say they struggle to earn a decent income.

Uber, with a stock market capitalisation of $74 billion, aims to adapt its model used in the United States, where many truck drivers are sole operators, to Europe, where family-run firms predominate.

The apps still face challenges, ranging from environmental issues confronting an industry that runs on diesel to ensuring drivers are not overworked with long hours on the road.

The industry also needs new recruits, with the World Bank estimating two-thirds of German drivers will retire over the next decade, threatening a shortage in capacity for an industry that handles more than 70 per cent of freight.

US ride-hailing company Uber is launching a freight platform in Germany, taking on local technology startups in a race to grab a share of Europe's $500 billion trucking market.

US ride-hailing company Uber is launching a freight platform in Germany, taking on local technology startups in a race to grab a share of Europe's $500 billion trucking market. Germany will be Uber Freight's second market to go live on the continent after the Netherlands, an executive told Reuters, with further expansion in prospect once operations are running smoothly in Europe's largest economy. In the United States, Uber Freight already connects 48 states and generates more than $125 million in quarterly revenues. Under maverick founder Travis Kalanick, Uber's earlier bid to establish its ride-hailing services in Germany met intractable opposition from taxi companies, politicians and the courts. This time, led by Kalanick's successor Dara Khosrowshawi, Uber has consulted German officials and industry to win support for its freight business, said Daniel Buczkowski, Uber Freight's head of European expansion. "After the change in leadership, we engaged in doing the right thing," Buczkowski, who is German, told Reuters. Uber will compete with local players, including Berlin-based startup sender, which has raised $70 million from private equity house Lakestar and other investors at a $300 million valuation, and which already has a wider presence in Europe. Other technology players in the freight forwarding sector include Flexport, a full-service platform based in San Francisco that raised $1 billion earlier this year from investors led by Japan's Softbank Group. UK-based Zencargo and FreightHub, which like the sender is headquartered in Berlin, have also taken in investments of late. Buczkowski sees Uber Freight's edge in its worldwide reach and proven technology. "As a global company we have the bandwidth to constantly innovate and create new products and features that support the entire marketplace," he said. The freight platforms aim to digitalise an industry still dominated by firms running 10 or fewer trucks and to improve efficiency trucks are empty for 21 per cent of the distance they travel. Other gains can come from real-time tracking of consignments, and the automation of payments in an industry where trucking firms often waste weeks chasing up invoices. "The key to getting a lot of value out of this industry is understanding how to use those empty kilometres," said Nicolaus Schefenacker, a co-founder of the sender, which was set up in 2016. He told Reuters that, as its network expanded, it was easier to model and forecast traffic flows to ensure consignments found the right truck at the right price. Although the freight tech sector is crowded, the market is segmented and the sender sees a clear opportunity in the so-called full-truckload market. "The market is so huge that I think a lot of players are able to coexist. That's also the way we think about Uber Freight," Schefenacker told Reuters. Unlike Uber's ride-hailing app or its food-delivery service, Uber Freight will operate as a middle-man in a market with an established pricing structure. It will make money from the margin between the price paid by the shipper and the amount it pays on to the trucker, insulating it from the type of complaints made by many ride-hailing drivers who say they struggle to earn a decent income. Uber, with a stock market capitalisation of $74 billion, aims to adapt its model used in the United States, where many truck drivers are sole operators, to Europe, where family-run firms predominate. The apps still face challenges, ranging from environmental issues confronting an industry that runs on diesel to ensuring drivers are not overworked with long hours on the road. The industry also needs new recruits, with the World Bank estimating two-thirds of German drivers will retire over the next decade, threatening a shortage in capacity for an industry that handles more than 70 per cent of freight.

Uber freight launches in Germany, takes on local competition

<a href="https://www.wionews.com/world/south-koreas-acquisition-of-us-f-35-fighter-aimed-at-opening-gate-to-invade-north-north-korea-state-media-234830">South Korea</a> protested on Wednesday against a Japanese plan to remove it from a Japanese list of countries that face minimum trade restrictions, saying it would undermine their decades-old economic and security cooperation and threaten free trade.

Japan's planned revision of the law to take South Korea off its so-called white list comes amid a deepening row over compensation for wartime forced labour, and after Japan tightened curbs this month on exports to South Korea of high-tech materials used for making memory chips and display panels.

South Korea's industry ministry said in a statement Japan's removal of South Korea from the list would be a very grave matter that would undermine their economic and security partnership.

It asked Japan to scrap the plan, flagging concerns over wider disruptions of global supply chains involving South Korean chip and screen makers.

"It is a very grave matter that shakes the foundation of South Korea-Japan economic partnership and Northeast Asian security cooperation that has been maintained and developed for more than 60 years," <a href="https://www.wionews.com/business-economy/calls-for-boycott-of-japan-grow-in-south-korea-as-diplomatic-row-simmers-233755">Sung Yoon-mo</a>, the South Korean industry minister, told a briefing.

"Removal of South Korea from the white list of countries is against international norms and we are worried about its serious negative impact on global value chains and free trade," Sung said.

Japan is due to decide on a revision of its list after canvassing public opinion, which is due to be done by Wednesday.

Officials at Japan's trade ministry were not immediately available for comment.

Questions over the list come after Japan this month tightened restrictions on exports of high-tech materials to South Korea.

The restrictions came as Japan complained of the erosion of trust with South Korea after a South Korean court ruled last year that Japanese companies had to pay compensation to South Koreans forced to work in Japanese factories during Japan's occupation of the Korean peninsula from 1910 to 1945.

Japan believes the compensation issue was settled under a 1965 treaty and the court ruling violated international law.

Japan's top government spokesman said on Wednesday relations with South Korea were in a "very severe" state and Japan would continue to urge South Korea to take appropriate action over a string of issues that have frayed ties.

'Long Term Harm'

US tech industry groups with members including Apple sent an open letter on Tuesday to Japan and South Korea calling for a quick resolution of their dispute.

"Non-transparent and unilateral changes in export control policies can cause supply chain disruptions, delays in shipments, and ultimately long-term harm to the companies that operate within and beyond your borders and the workers they employ," the business groups said in their letter.

Apple is a major customer of South Korean memory chip giants Samsung Elec and SK Hynix.

Japan has threatened to drop South Korea from the list of countries that face minimum trade restrictions under a trade control law, which would require Japanese exporters to seek a licence for certain items they want to sell to South Korea that could be used in manufacturing weapons.

There are 27 countries on Japan's list including Germany, Britain and the United States.

South Korea has stepped up diplomatic efforts to get Japan to scrap its trade controls, asking major ally the United States to help, though it has not rushed to step in.

South Korea officials are expected to raise the matter in talks with US national security adviser John Bolton who is in Seoul.

South Korea protested on Wednesday against a Japanese plan to remove it from a Japanese list of countries that face minimum trade restrictions, saying it would undermine their decades-old economic and security cooperation and threaten free trade.

South Korea protested on Wednesday against a Japanese plan to remove it from a Japanese list of countries that face minimum trade restrictions, saying it would undermine their decades-old economic and security cooperation and threaten free trade. Japan's planned revision of the law to take South Korea off its so-called white list comes amid a deepening row over compensation for wartime forced labour, and after Japan tightened curbs this month on exports to South Korea of high-tech materials used for making memory chips and display panels. South Korea's industry ministry said in a statement Japan's removal of South Korea from the list would be a very grave matter that would undermine their economic and security partnership. It asked Japan to scrap the plan, flagging concerns over wider disruptions of global supply chains involving South Korean chip and screen makers. "It is a very grave matter that shakes the foundation of South Korea-Japan economic partnership and Northeast Asian security cooperation that has been maintained and developed for more than 60 years," Sung Yoon-mo, the South Korean industry minister, told a briefing. "Removal of South Korea from the white list of countries is against international norms and we are worried about its serious negative impact on global value chains and free trade," Sung said. Japan is due to decide on a revision of its list after canvassing public opinion, which is due to be done by Wednesday. Officials at Japan's trade ministry were not immediately available for comment. Questions over the list come after Japan this month tightened restrictions on exports of high-tech materials to South Korea. The restrictions came as Japan complained of the erosion of trust with South Korea after a South Korean court ruled last year that Japanese companies had to pay compensation to South Koreans forced to work in Japanese factories during Japan's occupation of the Korean peninsula from 1910 to 1945. Japan believes the compensation issue was settled under a 1965 treaty and the court ruling violated international law. Japan's top government spokesman said on Wednesday relations with South Korea were in a "very severe" state and Japan would continue to urge South Korea to take appropriate action over a string of issues that have frayed ties. 'Long Term Harm' US tech industry groups with members including Apple sent an open letter on Tuesday to Japan and South Korea calling for a quick resolution of their dispute. "Non-transparent and unilateral changes in export control policies can cause supply chain disruptions, delays in shipments, and ultimately long-term harm to the companies that operate within and beyond your borders and the workers they employ," the business groups said in their letter. Apple is a major customer of South Korean memory chip giants Samsung Elec and SK Hynix. Japan has threatened to drop South Korea from the list of countries that face minimum trade restrictions under a trade control law, which would require Japanese exporters to seek a licence for certain items they want to sell to South Korea that could be used in manufacturing weapons. There are 27 countries on Japan's list including Germany, Britain and the United States. South Korea has stepped up diplomatic efforts to get Japan to scrap its trade controls, asking major ally the United States to help, though it has not rushed to step in. South Korea officials are expected to raise the matter in talks with US national security adviser John Bolton who is in Seoul.

South Korea asks Japan not to drop it from smooth-trade list

<a href="https://www.wionews.com/world/south-koreas-acquisition-of-us-f-35-fighter-aimed-at-opening-gate-to-invade-north-north-korea-state-media-234830">South Korea</a> said it fired warning shots at a Russian military aircraft on Tuesday after it violated the country's airspace off its east coast.&nbsp;

The Russian jet breached <a href="https://www.wionews.com/world/australia-temporarily-suspends-boeing-737-max-service-after-china-singapore-stops-service-202856">South Korean airspace</a> twice prompting the Air Force to scramble fighter jets and fire warning shots, an official at the Joint Chiefs of Staff told AFP.&nbsp;

The first violation occurred just after 9:00 am (midnight GMT Monday) and lasted three minutes.&nbsp;

The plane returned half an hour later, breaching the airspace for four minutes this time, the South's military said.

In response, the Air Force deployed multiple F-15k and F-16k jets to intercept the plane and fired flares after sending a message to the aircraft.

The official said it was the first time a Russian plane has violated South Korean airspace, adding that the military was investigating the matter.

The encounter occurred near the easternmost islets of Dokdo, disputed islands controlled by the South but claimed by Japan, the military said.&nbsp;

Seoul's defence ministry plans to protest Russian officials later in the day.

There was no immediate comment from Moscow on the incident.

South Korea said it fired warning shots at a Russian military aircraft on Tuesday after it violated the country's airspace off its east coast. The Russian jet breached South Korean airspace twice prompting the Air Force to scramble fighter jets and fire warning shots, an official at the Joint Chiefs of Staff told AFP.

South Korea said it fired warning shots at a Russian military aircraft on Tuesday after it violated the country's airspace off its east coast. The Russian jet breached South Korean airspace twice prompting the Air Force to scramble fighter jets and fire warning shots, an official at the Joint Chiefs of Staff told AFP. The first violation occurred just after 9:00 am (midnight GMT Monday) and lasted three minutes. The plane returned half an hour later, breaching the airspace for four minutes this time, the South's military said. In response, the Air Force deployed multiple F-15k and F-16k jets to intercept the plane and fired flares after sending a message to the aircraft. The official said it was the first time a Russian plane has violated South Korean airspace, adding that the military was investigating the matter. The encounter occurred near the easternmost islets of Dokdo, disputed islands controlled by the South but claimed by Japan, the military said. Seoul's defence ministry plans to protest Russian officials later in the day. There was no immediate comment from Moscow on the incident.

South Korea says fired warning shots at Russian military jet

Shinzo Abe has declared victory in Japan's national elections with polls indicating his party has won a majority of seats in the upper house of Parliament, and is now set to become the country's longest-serving prime minister.

Shinzo Abe declares victory in Japan election

<a href="https://www.wionews.com/world/japan-pm-shinzo-abe-calls-for-strengthing-ties-with-india-221913">Japan</a> stands ready to take all possible steps flexibly and without hesitation when downside risks to the economy emerge, Prime Minister Shinzo Abe said, as simmering Sino-US trade war clouds the outlook for the export-reliant economy.

Speaking on Monday after his ruling coalition kept a solid majority in upper house elections, Abe pledged to continue to make the economy his top priority, to put a decisive end to roughly two decades of deflation.

China's slowing economy, its trade war with the United States and spreading protectionism have led to a seventh straight monthly fall in Japan's exports and weakened factory output, threatening to derail the world's third-largest economy.

"Uncertainty remains over the global economic outlook such as trade frictions and Britain's exit from the European Union," Abe told a news conference. "We'll respond to downside risks without hesitation and take flexible and all possible steps.

"Based on a stable political basis, the Abe cabinet will take more aggressive and bold economic measures than ever."

Japanese policymakers are counting on solid domestic demand to offset the external headwinds, but a scheduled hike in sales tax, to 10 per cent from 8 per cent now, threatens that scenario, analysts say.

Abe has twice delayed the planned hike since the previous tax increase to 8 per cent, from 5 per cent, dealt a severe blow to private consumption, which accounts for about 60 per cent of the economy, and triggered a deep economic downturn.

To prevent a repeat of the tax hike pain, Abe's government has earmarked 2 trillion yen ($18.53 billion) in stimulus measures in this fiscal year's budget including free education, shopping vouchers, tax breaks on car and housing purchases.

"We will underpin domestic consumption which accounts for the bulk of the economy by taking sufficient measures," Abe said.

Late on Sunday, Abe said he would take economic stimulus steps if there was a risk of the economy faltering.

With monetary policy stretched, after more than six years of easy money has dried up the bond market and squeezed banks' profit margins, analysts say Japan must fight the next recession with fiscal stimulus through a combination of monetary easing.

"If the economy falls into a recession, Japan would resort to a large-scale fiscal stimulus with the Bank of Japan effectively financing debt through its yield curve control," said Ryutaro Kono, chief economist at BNP Paribas Securities.

($1=107.9300 yen)

Japan stands ready to take all possible steps flexibly and without hesitation when downside risks to the economy emerge, Prime Minister Shinzo Abe said, as simmering Sino-US trade war clouds the outlook for the export-reliant economy.

Japan stands ready to take all possible steps flexibly and without hesitation when downside risks to the economy emerge, Prime Minister Shinzo Abe said, as simmering Sino-US trade war clouds the outlook for the export-reliant economy. Speaking on Monday after his ruling coalition kept a solid majority in upper house elections, Abe pledged to continue to make the economy his top priority, to put a decisive end to roughly two decades of deflation. China's slowing economy, its trade war with the United States and spreading protectionism have led to a seventh straight monthly fall in Japan's exports and weakened factory output, threatening to derail the world's third-largest economy. "Uncertainty remains over the global economic outlook such as trade frictions and Britain's exit from the European Union," Abe told a news conference. "We'll respond to downside risks without hesitation and take flexible and all possible steps. "Based on a stable political basis, the Abe cabinet will take more aggressive and bold economic measures than ever." Japanese policymakers are counting on solid domestic demand to offset the external headwinds, but a scheduled hike in sales tax, to 10 per cent from 8 per cent now, threatens that scenario, analysts say. Abe has twice delayed the planned hike since the previous tax increase to 8 per cent, from 5 per cent, dealt a severe blow to private consumption, which accounts for about 60 per cent of the economy, and triggered a deep economic downturn. To prevent a repeat of the tax hike pain, Abe's government has earmarked 2 trillion yen ($18.53 billion) in stimulus measures in this fiscal year's budget including free education, shopping vouchers, tax breaks on car and housing purchases. "We will underpin domestic consumption which accounts for the bulk of the economy by taking sufficient measures," Abe said. Late on Sunday, Abe said he would take economic stimulus steps if there was a risk of the economy faltering. With monetary policy stretched, after more than six years of easy money has dried up the bond market and squeezed banks' profit margins, analysts say Japan must fight the next recession with fiscal stimulus through a combination of monetary easing. "If the economy falls into a recession, Japan would resort to a large-scale fiscal stimulus with the Bank of Japan effectively financing debt through its yield curve control," said Ryutaro Kono, chief economist at BNP Paribas Securities. ($1=107.9300 yen)

Japan's Shinzo Abe vows flexible steps in case of downside economic risks

Two wheelchair-bound candidates won seats in Japan`s upper house vote on Sunday, media projections showed, a sign of changing attitudes towards disabled people in a country where they have long been encouraged to stay in the shadow.

Yasuhiko Funago, a vice president of a company that provides elderly and patient care, has Amyotrophic Lateral Sclerosis (ALS), a progressive neurological disease in which patients gradually lose control of most of their muscles.

Although a lower house lawmaker in the past was diagnosed with ALS after winning a seat, no one had previously begun a career in parliament after being diagnosed with the disease, according to the Japan ALS Association.

The other candidate is Eiko Kimura, who has cerebral palsy. Both of them were running from a small opposition group, the Reiwa Shinsengumi.&nbsp;

"We will of course have specialists accompany them and look after them," Taro Yamamoto, head of the Reiwa Shinsengumi, told a commercial broadcaster after polls closed on Sunday evening.

"But primary responsibility to take care them falls on parliament, which will be called on to provide them with reasonable accommodation."

Besides Funago and Kimura, Rie Saito, who lost her hearing as an infant, was running from the largest opposition Constitutional Democratic Party of Japan.&nbsp;

Media had not yet called her race, but if Saito wins, she will be the first deaf member of parliament in post-World War Two Japan.

Experts in disability issues said before Sunday`s election that these rare candidacies were welcome developments but also were intended to signal greater change is needed, even as Japan prepares to host the Paralympic Games next year.

During the election campaign, Funago and Kimura said they would seek education reforms as lawmakers to help create a society where people with disabilities can lead better lives.&nbsp;

People with physical or intellectual disability as well as with mental disorder, account for about 8% of the Japanese population.

Two wheelchair-bound candidates won seats in Japan`s upper house vote on Sunday, media projections showed, a sign of changing attitudes towards disabled people in a country where they have long been encouraged to stay in the shadow.

Two wheelchair-bound candidates won seats in Japan`s upper house vote on Sunday, media projections showed, a sign of changing attitudes towards disabled people in a country where they have long been encouraged to stay in the shadow. Yasuhiko Funago, a vice president of a company that provides elderly and patient care, has Amyotrophic Lateral Sclerosis (ALS), a progressive neurological disease in which patients gradually lose control of most of their muscles. Although a lower house lawmaker in the past was diagnosed with ALS after winning a seat, no one had previously begun a career in parliament after being diagnosed with the disease, according to the Japan ALS Association. The other candidate is Eiko Kimura, who has cerebral palsy. Both of them were running from a small opposition group, the Reiwa Shinsengumi. "We will of course have specialists accompany them and look after them," Taro Yamamoto, head of the Reiwa Shinsengumi, told a commercial broadcaster after polls closed on Sunday evening. "But primary responsibility to take care them falls on parliament, which will be called on to provide them with reasonable accommodation." Besides Funago and Kimura, Rie Saito, who lost her hearing as an infant, was running from the largest opposition Constitutional Democratic Party of Japan. Media had not yet called her race, but if Saito wins, she will be the first deaf member of parliament in post-World War Two Japan. Experts in disability issues said before Sunday`s election that these rare candidacies were welcome developments but also were intended to signal greater change is needed, even as Japan prepares to host the Paralympic Games next year. During the election campaign, Funago and Kimura said they would seek education reforms as lawmakers to help create a society where people with disabilities can lead better lives. People with physical or intellectual disability as well as with mental disorder, account for about 8% of the Japanese population.

Two severely-disabled candidates win seats in Japan upper house vote

Japanese Prime Minister Shinzo Abe`s Liberal Democratic Party and its junior coalition partner, the Komeito party, look set to retain a solid majority in parliament`s upper house in Sunday`s election, media surveys show.

Up in the air, however, is whether the ruling bloc, along with the smaller Japan Innovation Party and independents, will keep the two-thirds majority necessary for Abe to have a chance of achieving his goal of revising the pacifist constitution.

Below are key facts about the upper house election and important numbers to watch.

WHAT IS THE UPPER HOUSE?&nbsp;

The upper house is the less powerful of parliament`s two chambers. It lacks the authority to select a prime minister, and budgets and treaties can be enacted without its approval.

But the chamber can reject other bills approved by the lower house, and the legislation can then only be enacted by a two-thirds majority of the lower chamber. Abe`s ruling bloc holds a two-thirds majority in the lower chamber.

The number of upper house seats will increase by three to 245 after Sunday`s election when 124 of the seats will be up for grabs. The total number of seats will be raised by another three to 248 in three years when the next upper house election is held.

HOW THE ELECTION WORKS

Of the 124 seats at stake, 74 are for prefectural or provincial constituencies, each with one to six seats, where candidates with the most votes win.

Another 50 seats are from a nationwide proportional representation bloc, where voters choose either a candidate or a party, and seats are allotted based on the total number of votes cast for parties and their candidates.

FIFTY-THREE, SIXTY-THREE, EIGHTY-FIVE

Abe`s ruling bloc holds 70 seats that are not up for re-election and therefore needs to win 53 of the 124 seats being contested to maintain a majority, his stated target.&nbsp;

The Liberal Democratic Party (LDP) and the Komeito party need to obtain a combined 63 seats to win more than half of the seats in contention and tighten their grip on power.

The ruling bloc, coupled with the Japan Innovation Party and independents who are open to constitutional revision, hold 79 uncontested seats, and need to take 85 seats on Sunday to keep a two-thirds majority, according to media calculations.

A constitutional revision requires approval by two-thirds of both chambers of parliament and a majority in a public referendum. The pro-revision camp holds a two-thirds majority in the lower house.

Japanese Prime Minister Shinzo Abe`s Liberal Democratic Party and its junior coalition partner, the Komeito party, look set to retain a solid majority in parliament`s upper house in Sunday`s election, media surveys show.

Japanese Prime Minister Shinzo Abe`s Liberal Democratic Party and its junior coalition partner, the Komeito party, look set to retain a solid majority in parliament`s upper house in Sunday`s election, media surveys show. Up in the air, however, is whether the ruling bloc, along with the smaller Japan Innovation Party and independents, will keep the two-thirds majority necessary for Abe to have a chance of achieving his goal of revising the pacifist constitution. Below are key facts about the upper house election and important numbers to watch. WHAT IS THE UPPER HOUSE? The upper house is the less powerful of parliament`s two chambers. It lacks the authority to select a prime minister, and budgets and treaties can be enacted without its approval. But the chamber can reject other bills approved by the lower house, and the legislation can then only be enacted by a two-thirds majority of the lower chamber. Abe`s ruling bloc holds a two-thirds majority in the lower chamber. The number of upper house seats will increase by three to 245 after Sunday`s election when 124 of the seats will be up for grabs. The total number of seats will be raised by another three to 248 in three years when the next upper house election is held. HOW THE ELECTION WORKS Of the 124 seats at stake, 74 are for prefectural or provincial constituencies, each with one to six seats, where candidates with the most votes win. Another 50 seats are from a nationwide proportional representation bloc, where voters choose either a candidate or a party, and seats are allotted based on the total number of votes cast for parties and their candidates. FIFTY-THREE, SIXTY-THREE, EIGHTY-FIVE Abe`s ruling bloc holds 70 seats that are not up for re-election and therefore needs to win 53 of the 124 seats being contested to maintain a majority, his stated target. The Liberal Democratic Party (LDP) and the Komeito party need to obtain a combined 63 seats to win more than half of the seats in contention and tighten their grip on power. The ruling bloc, coupled with the Japan Innovation Party and independents who are open to constitutional revision, hold 79 uncontested seats, and need to take 85 seats on Sunday to keep a two-thirds majority, according to media calculations. A constitutional revision requires approval by two-thirds of both chambers of parliament and a majority in a public referendum. The pro-revision camp holds a two-thirds majority in the lower house.

Key facts and numbers to watch in Japanese election

Japanese voters cast ballots Sunday in an upper house election, with Shinzo Abe's ruling bloc looking to protect its majority and keep on track plans to amend the country's pacifist constitution.

The 64-year-old Abe, who is on course to become Japan's longest-serving prime minister, is also hoping to shore up his mandate ahead of a crucial consumption tax hike later this year, along with trade negotiations with Washington.

Opinion polls suggest his Liberal Democratic Party (LDP) and its coalition partner Komeito are likely to win a majority, mostly due to a lacklustre opposition.

Sunday's vote is for half the seats in the House of Councillors -- the less powerful upper house of parliament -- and polling stations across the country open at 7:00 am (2200 GMT Saturday).

The vote outcome is expected to become clear shortly after the polls close at 8:00 pm, with pollsters suggesting turnout could be lower than 50 per cent -- significantly less than usual.

Abe's ruling coalition is forecast to win a solid majority of the 124 seats contested in the election, according to pre-election surveys.

The two parties control 70 seats in the half of the chamber that is not being contested, meaning the projections put them on track to maintain their overall majority in the body.

"Abe's strength is largely based on passive support resulting from disarray in the opposition camp and a lack of rivals," Shinichi Nishikawa, professor of political science at Meiji University in Tokyo, told AFP.

A win means Abe should be able to stay in power until November when he will break the record of the nation's longest-serving premiership held by Taro Katsura, a revered politician who served three times between 1901 and 1913.

Amend constitution

During campaigns, Abe's ruling coalition has sought to win voter support for a rise in the nation's consumption tax to 10 per cent later this year as part of efforts to ease swelling social security costs in the "ultra-aged" country.

Abe is also hoping that his coalition and a loose group of conservatives from smaller opposition parties can grab a two-thirds majority in the upper house, giving him the support to move ahead with plans to amend the constitution's provisions on the military.

"This is an election to decide whether to pick parties who take responsibility for firm discussions on the constitution," Abe told voters in a campaign speech earlier this month.

Abe vowed to "clearly stipulate the role of the Self-Defence Forces in the constitution," which prohibits Japan from waging war and maintaining a military.

The provisions, imposed by the US forces after World War II, are popular in the public at large but reviled by nationalists like Abe, who see them as outdated and punitive.

Local media predict that forces in favour of revising the constitution, led by Abe's LDP, are likely to win close to 85 of the seats being contested, giving them a "supermajority" in the chamber.

"Since the ruling coalition is widely expected to win the election, attention is now focused on whether the pro-revision forces can win a two-thirds majority," Nishikawa said.

But even if Abe secures it, any constitutional revision also requires approval in a national referendum -- a result that is far from guaranteed.

Japanese voters cast ballots Sunday in an upper house election, with Shinzo Abe's ruling bloc looking to protect its majority and keep on track plans to amend the country's pacifist constitution.

Japanese voters cast ballots Sunday in an upper house election, with Shinzo Abe's ruling bloc looking to protect its majority and keep on track plans to amend the country's pacifist constitution. The 64-year-old Abe, who is on course to become Japan's longest-serving prime minister, is also hoping to shore up his mandate ahead of a crucial consumption tax hike later this year, along with trade negotiations with Washington. Opinion polls suggest his Liberal Democratic Party (LDP) and its coalition partner Komeito are likely to win a majority, mostly due to a lacklustre opposition. Sunday's vote is for half the seats in the House of Councillors -- the less powerful upper house of parliament -- and polling stations across the country open at 7:00 am (2200 GMT Saturday). The vote outcome is expected to become clear shortly after the polls close at 8:00 pm, with pollsters suggesting turnout could be lower than 50 per cent -- significantly less than usual. Abe's ruling coalition is forecast to win a solid majority of the 124 seats contested in the election, according to pre-election surveys. The two parties control 70 seats in the half of the chamber that is not being contested, meaning the projections put them on track to maintain their overall majority in the body. "Abe's strength is largely based on passive support resulting from disarray in the opposition camp and a lack of rivals," Shinichi Nishikawa, professor of political science at Meiji University in Tokyo, told AFP. A win means Abe should be able to stay in power until November when he will break the record of the nation's longest-serving premiership held by Taro Katsura, a revered politician who served three times between 1901 and 1913. Amend constitution During campaigns, Abe's ruling coalition has sought to win voter support for a rise in the nation's consumption tax to 10 per cent later this year as part of efforts to ease swelling social security costs in the "ultra-aged" country. Abe is also hoping that his coalition and a loose group of conservatives from smaller opposition parties can grab a two-thirds majority in the upper house, giving him the support to move ahead with plans to amend the constitution's provisions on the military. "This is an election to decide whether to pick parties who take responsibility for firm discussions on the constitution," Abe told voters in a campaign speech earlier this month. Abe vowed to "clearly stipulate the role of the Self-Defence Forces in the constitution," which prohibits Japan from waging war and maintaining a military. The provisions, imposed by the US forces after World War II, are popular in the public at large but reviled by nationalists like Abe, who see them as outdated and punitive. Local media predict that forces in favour of revising the constitution, led by Abe's LDP, are likely to win close to 85 of the seats being contested, giving them a "supermajority" in the chamber. "Since the ruling coalition is widely expected to win the election, attention is now focused on whether the pro-revision forces can win a two-thirds majority," Nishikawa said. But even if Abe secures it, any constitutional revision also requires approval in a national referendum -- a result that is far from guaranteed.

Japan votes in upper house election

Japanese authorities have issued an arrest warrant for the man suspected of an <a href="https://www.wionews.com/world/kyoto-animation-fire-suspect-has-criminal-record-was-treated-for-mental-health-issues-report-237136">arson attack on an animation studio in western Japan</a> that killed 34 people, public broadcaster NHK said on Saturday.

Authorities issued the warrant for 41-year-old Shinji Aoba related to arson and murder after the attack on Kyoto Animation on Thursday, NHK said.

Police plan to arrest Aoba, who has been hospitalised for heavy burns and was earlier airlifted by helicopter to a university hospital in nearby Osaka, once he recovers, NHK said.

Thirty-four&nbsp;people were killed in the fire on Thursday at the Kyoto Animation studio. Experts say the fire&nbsp;<a href="https://www.wionews.com/world/spiral-stairs-no-sprinklers-may-have-contributed-to-deadly-japan-fire-237105">spread so fast</a>&nbsp;not only because it was fuelled by petrol but because it was funnelled up a spiral staircase and there were no sprinklers to douse it.

Shouting "die" and screaming&nbsp;<a href="https://www.wionews.com/world/suspected-arsonist-believed-his-novel-was-stolen-by-japanese-studio-report-237091">accusations of plagiarism</a>&nbsp;sloshed what appeared to be petrol in the three-storey Kyoto Animation building on Thursday before setting it ablaze.

The man who believed to have started the fire at an animation studio in Japan's Kyoto has a criminal record, Russia's Sputnik News said, citing sources in Japan.

The report further said that that the suspect, identified as 41-year-old Shinji Aoba by the Japan Police, was indicted in 2012 for committing a robbery at a convenience store. He also served a prison sentence of three-and-a-half years, said the Russian news agency.

The suspect has a history of being treated for mental health issues and lives on welfare, the news outlet said. He is currently receiving treatment for the burns caused by the fire and will be questioned by the police.

Japanese authorities have issued an arrest warrant for the man suspected of an arson attack on an animation studio in western Japan that killed 34 people, public broadcaster NHK said on Saturday.

Japanese authorities have issued an arrest warrant for the man suspected of an arson attack on an animation studio in western Japan that killed 34 people, public broadcaster NHK said on Saturday. Authorities issued the warrant for 41-year-old Shinji Aoba related to arson and murder after the attack on Kyoto Animation on Thursday, NHK said. Police plan to arrest Aoba, who has been hospitalised for heavy burns and was earlier airlifted by helicopter to a university hospital in nearby Osaka, once he recovers, NHK said. Thirty-four people were killed in the fire on Thursday at the Kyoto Animation studio. Experts say the fire spread so fast not only because it was fuelled by petrol but because it was funnelled up a spiral staircase and there were no sprinklers to douse it. Shouting "die" and screaming accusations of plagiarism sloshed what appeared to be petrol in the three-storey Kyoto Animation building on Thursday before setting it ablaze. The man who believed to have started the fire at an animation studio in Japan's Kyoto has a criminal record, Russia's Sputnik News said, citing sources in Japan. The report further said that that the suspect, identified as 41-year-old Shinji Aoba by the Japan Police, was indicted in 2012 for committing a robbery at a convenience store. He also served a prison sentence of three-and-a-half years, said the Russian news agency. The suspect has a history of being treated for mental health issues and lives on welfare, the news outlet said. He is currently receiving treatment for the burns caused by the fire and will be questioned by the police.

Japanese authorities issue arrest warrant for suspect in Kyoto arson attack

<a href="https://www.wionews.com/world/suspected-arsonist-believed-his-novel-was-stolen-by-japanese-studio-report-237091">The fire that tore through a building</a> in Japan killing 33 people may have spread so fast not only because it was fuelled by petrol but because it was funnelled up a spiral staircase and there were no sprinklers to douse it, experts said on Friday.

A man shouting "die" and screaming accusations of plagiarism sloshed what appeared to be petrol in the three-storey Kyoto Animation building on Thursday before setting it ablaze.

That alone could have been enough to make it impossible for victims to escape, architects said.

But an open, three-storey spiral staircase inside the building created an especially deadly environment for fire.

"The structure of the building was that it had one spiral staircase penetrating through three floors acting as a chimney, the most effective way of starting a fire," said Momoko Higuchi, a Tokyo-based architect.

"Because the fire was with petrol, the effect was like a bomb. Most died of smoke."

Watch:&nbsp;Suspected arson attack in Japan leaves at least 30 dead

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/kyoto-animation-studio-suspected-arson-attack-in-japan-leaves-at-least-30-dead-236927/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The building did not have sprinklers, nor indoor fire hydrants, but it did not have to have them under Japan's fire code, a Kyoto Fire Department official said.

An inspection of the building in October had found no fire safety problems, he said.

Buildings usually fall into different categories depending on size, said Shinichi Sugawara, a professor emeritus at Tokyo University of Science.

While fire shutters are often required around structures like spiral staircases, to enclose then to prevent the spread of fire, Sugawara said he had heard that they were not needed in this case.

Some Japanese media has said that was because of the building's relatively small floor space.

"I personally think that all places like that should have shutters, and all buildings should have sprinklers, regardless of size," he said.

But the most lethal factor may simply have been the petrol.

"Petrol vaporizes quickly and really burns fast, and given the kind of business it was, there may have been a lot of papers and things lying around," Sugawara added.

"Then the smoke would rise up the stairs."

The fire that tore through a building in Japan killing 33 people may have spread so fast not only because it was fuelled by petrol but because it was funnelled up a spiral staircase and there were no sprinklers to douse it, experts said on Friday.

The fire that tore through a building in Japan killing 33 people may have spread so fast not only because it was fuelled by petrol but because it was funnelled up a spiral staircase and there were no sprinklers to douse it, experts said on Friday. A man shouting "die" and screaming accusations of plagiarism sloshed what appeared to be petrol in the three-storey Kyoto Animation building on Thursday before setting it ablaze. That alone could have been enough to make it impossible for victims to escape, architects said. But an open, three-storey spiral staircase inside the building created an especially deadly environment for fire. "The structure of the building was that it had one spiral staircase penetrating through three floors acting as a chimney, the most effective way of starting a fire," said Momoko Higuchi, a Tokyo-based architect. "Because the fire was with petrol, the effect was like a bomb. Most died of smoke." Watch: Suspected arson attack in Japan leaves at least 30 dead The building did not have sprinklers, nor indoor fire hydrants, but it did not have to have them under Japan's fire code, a Kyoto Fire Department official said. An inspection of the building in October had found no fire safety problems, he said. Buildings usually fall into different categories depending on size, said Shinichi Sugawara, a professor emeritus at Tokyo University of Science. While fire shutters are often required around structures like spiral staircases, to enclose then to prevent the spread of fire, Sugawara said he had heard that they were not needed in this case. Some Japanese media has said that was because of the building's relatively small floor space. "I personally think that all places like that should have shutters, and all buildings should have sprinklers, regardless of size," he said. But the most lethal factor may simply have been the petrol. "Petrol vaporizes quickly and really burns fast, and given the kind of business it was, there may have been a lot of papers and things lying around," Sugawara added. "Then the smoke would rise up the stairs."

Spiral stairs, no sprinklers may have contributed to deadly Japan fire

<a href="https://www.wionews.com/business-economy/calls-for-boycott-of-japan-grow-in-south-korea-as-diplomatic-row-simmers-233755">South Korea</a>'s central bank delivered a surprise interest rate cut on Thursday, and shaved this year's growth forecast to the lowest in a decade, as a brewing dispute with Japan piled more pressure on the trade-dependent economy.

<a href="https://www.wionews.com/business-economy/equity-gauges-on-a-weak-note-yes-bank-drops-over-11-per-cent-236782">The Bank of Korea</a> is not alone in adopting the easier monetary policy, taking into account the dovish stance of global central banks and deteriorating economic conditions. Asia's fourth-largest economy has stuttered in the past few quarters due to slowing demand and rising risks from the US-China trade war.

Bank of Korea Governor Lee Ju-yeol told a news conference the central bank has room to respond to any changes in economic conditions, which analysts took as indicating another policy easing was on the table.

The BOK cut the base rate by 25 basis points to 1.50 per cent - the first reduction in three years and lowest since November - sooner than analysts had expected. A Reuters poll had predicted a move at the Aug. 30 meeting.

"Various remarks from the governor today indicated another cut was possible soon, such as his refusing to deny that markets were pricing in another cut this year and his comment that the bank still has policy room to operate," said Park Seok-gil, economist at JPMorgan in Seoul.

Treasury bond futures jumped on expectations for another rate cut, although stock and currency traders shrugged off Thursday's rate decision.

The central bank followed the rate cut by lowering this year's economic growth forecast to 2.2 per cent, just three months after it cut the projection to 2.5 per cent from 2.6 per cent. It also trimmed its inflation estimate to 0.7 pe cent from 1.1 per cent previously, which was already below its 2 per cent target.

"The policy board decided to lower the interest rate to support the economic recovery as both the growth and inflation trends were weaker than previously thought," the governor said.

"Our economic assessment reflected Japan's imposition of export restrictions as they will have considerable effects on our economy," he added, referring to Japan's curbs on exports to South Korea of key materials for chip and display production.

Lee emphasised the government needed to maintain strict measures aimed at containing housing prices while monetary policy was focused on risks from slowing economic growth.

Japan curbs deal a fresh blow

Korean bond prices had already pencilled in a rate cut or two in the near term especially since the central bank chief and the finance minister both suggested the time for policy easing was near.

Indonesia's central bank is also expected to begin an easing cycle with a rate cut later on Thursday, ahead of an anticipated Federal Reserve reduction of US rates at the end of July.

The BOK has come under more pressure to cut rates after the first-quarter GDP and inflation fell short of expectations and the US-China tariff dispute remains unresolved.

Early this month, South Korea's economy was dealt an additional blow as Japan announced plans to tighten restrictions on exports of materials for making chips and smartphone displays to its smaller neighbour over a diplomatic row.

Analysts say it is too early to estimate the damage but the curbs could affect South Korea's economy at least by hurting profits at the country's computer chip and smartphone makers as well as hitting sentiment for consumption and investment.

Global investment banks have downgraded their forecasts for South Korea's 2019 economic growth, with some expecting the pace to slow below 2 per cent from 2.7 per cent set last year.

South Korea's economy surprisingly contracted in the first quarter from the previous three-month period, while annual inflation has stayed below its 2 per cent target for the past seven successive months.

South Korea's central bank delivered a surprise interest rate cut on Thursday, and shaved this year's growth forecast to the lowest in a decade, as a brewing dispute with Japan piled more pressure on the trade-dependent economy.

South Korea's central bank delivered a surprise interest rate cut on Thursday, and shaved this year's growth forecast to the lowest in a decade, as a brewing dispute with Japan piled more pressure on the trade-dependent economy. The Bank of Korea is not alone in adopting the easier monetary policy, taking into account the dovish stance of global central banks and deteriorating economic conditions. Asia's fourth-largest economy has stuttered in the past few quarters due to slowing demand and rising risks from the US-China trade war. Bank of Korea Governor Lee Ju-yeol told a news conference the central bank has room to respond to any changes in economic conditions, which analysts took as indicating another policy easing was on the table. The BOK cut the base rate by 25 basis points to 1.50 per cent - the first reduction in three years and lowest since November - sooner than analysts had expected. A Reuters poll had predicted a move at the Aug. 30 meeting. "Various remarks from the governor today indicated another cut was possible soon, such as his refusing to deny that markets were pricing in another cut this year and his comment that the bank still has policy room to operate," said Park Seok-gil, economist at JPMorgan in Seoul. Treasury bond futures jumped on expectations for another rate cut, although stock and currency traders shrugged off Thursday's rate decision. The central bank followed the rate cut by lowering this year's economic growth forecast to 2.2 per cent, just three months after it cut the projection to 2.5 per cent from 2.6 per cent. It also trimmed its inflation estimate to 0.7 pe cent from 1.1 per cent previously, which was already below its 2 per cent target. "The policy board decided to lower the interest rate to support the economic recovery as both the growth and inflation trends were weaker than previously thought," the governor said. "Our economic assessment reflected Japan's imposition of export restrictions as they will have considerable effects on our economy," he added, referring to Japan's curbs on exports to South Korea of key materials for chip and display production. Lee emphasised the government needed to maintain strict measures aimed at containing housing prices while monetary policy was focused on risks from slowing economic growth. Japan curbs deal a fresh blow Korean bond prices had already pencilled in a rate cut or two in the near term especially since the central bank chief and the finance minister both suggested the time for policy easing was near. Indonesia's central bank is also expected to begin an easing cycle with a rate cut later on Thursday, ahead of an anticipated Federal Reserve reduction of US rates at the end of July. The BOK has come under more pressure to cut rates after the first-quarter GDP and inflation fell short of expectations and the US-China tariff dispute remains unresolved. Early this month, South Korea's economy was dealt an additional blow as Japan announced plans to tighten restrictions on exports of materials for making chips and smartphone displays to its smaller neighbour over a diplomatic row. Analysts say it is too early to estimate the damage but the curbs could affect South Korea's economy at least by hurting profits at the country's computer chip and smartphone makers as well as hitting sentiment for consumption and investment. Global investment banks have downgraded their forecasts for South Korea's 2019 economic growth, with some expecting the pace to slow below 2 per cent from 2.7 per cent set last year. South Korea's economy surprisingly contracted in the first quarter from the previous three-month period, while annual inflation has stayed below its 2 per cent target for the past seven successive months.

South Korea central bank surprises with rate cut, likely to loosen again

<a href="https://www.wionews.com/world/appalling-arson-attack-on-japanese-animation-studio-kills-at-least-33-236930">Arson attack on Japanese animation studio kills at least 33</a>

A man shouted "die" as he doused an animation studio with fuel and set it ablaze in Japan on Thursday, public broadcaster NHK said, killing at least 33 people in the&nbsp;nation's worst mass murder&nbsp;in nearly two decades.

<a href="https://www.wionews.com/world/seized-foreign-tanker-in-strait-of-hormuz-iran-236898">Seized 'foreign tanker' in Strait of Hormuz: Iran</a>

Iran's Revolutionary Guards said Thursday they had detained a "foreign tanker" and its crew for allegedly smuggling fuel in the Gulf. The tanker was seized on Sunday "south of the (Iranian) island of Larak" in the strategic Strait of Hormuz, the force's Sepahnews website said.

<a href="https://www.wionews.com/india-news/pakistan-reading-a-different-verdict-on-kulbhushan-jadhav-it-does-not-have-patience-to-read-mea-236899">Pakistan reading a different verdict on Kulbhushan Jadhav, it does not have patience to read: MEA</a>

As Pak&nbsp;PM Imran tired to give a "postive spin"&nbsp;to the International Court of Justice(ICJ) verdict on Kulbushan Jadhav, India slammed Pakistan's stance asserting that Pakistan has been reading from a different verdict.

<a href="https://www.wionews.com/world/minibus-with-migrants-overturns-in-turkey-killing-15-report-236904">15 migrants killed in Turkey after minibus overturns; nationality unknown</a>

Fifteen people were killed and 28 wounded after a minibus carrying migrants overturned in eastern Turkey on Thursday, the private news agency DHA reported.

<a href="https://www.wionews.com/south-asia/former-pakistan-prime-minister-shahid-khaqan-abbasi-arrested-in-lng-scam-236867">Former Pakistan Prime Minister Shahid Khaqan Abbasi arrested in LNG scam&nbsp;</a>

Former Pakistan Prime Minister Shahid Khaqan Abbasi&nbsp;has been arrested by Pakistan's corruption watchdog, National Accountability Bureau (NAB), news agency ANI reported citing Pak media.

Arson attack on Japanese animation studio kills at least 33 A man shouted "die" as he doused an animation studio with fuel and set it ablaze in Japan on Thursday, public broadcaster NHK said, killing at least 33 people in the nation's worst mass murder in nearly two decades.

Arson attack on Japanese animation studio kills at least 33 A man shouted "die" as he doused an animation studio with fuel and set it ablaze in Japan on Thursday, public broadcaster NHK said, killing at least 33 people in the nation's worst mass murder in nearly two decades. Seized 'foreign tanker' in Strait of Hormuz: Iran Iran's Revolutionary Guards said Thursday they had detained a "foreign tanker" and its crew for allegedly smuggling fuel in the Gulf. The tanker was seized on Sunday "south of the (Iranian) island of Larak" in the strategic Strait of Hormuz, the force's Sepahnews website said. Pakistan reading a different verdict on Kulbhushan Jadhav, it does not have patience to read: MEA As Pak PM Imran tired to give a "postive spin" to the International Court of Justice(ICJ) verdict on Kulbushan Jadhav, India slammed Pakistan's stance asserting that Pakistan has been reading from a different verdict. 15 migrants killed in Turkey after minibus overturns; nationality unknown Fifteen people were killed and 28 wounded after a minibus carrying migrants overturned in eastern Turkey on Thursday, the private news agency DHA reported. Former Pakistan Prime Minister Shahid Khaqan Abbasi arrested in LNG scam Former Pakistan Prime Minister Shahid Khaqan Abbasi has been arrested by Pakistan's corruption watchdog, National Accountability Bureau (NAB), news agency ANI reported citing Pak media.

News brief: Big stories of the day

japan

Japan, News on Japan, stories on Japan, articles on Japan, Japan stories at Wion, Japan news, Japan latest news