International News 06 August 2025
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CICT Acquires Full Stake in CapitaSpring for S$1.05 Billion
CapitaLand Integrated Commercial Trust (CICT) will acquire the remaining 55% stake in the CapitaSpring development from CapitaLand Development and Mitsubishi Estate, with the property valued at S$1.05 billion (approximately US$816.55 million). The total acquisition cost for the office and retail components of the 51-storey skyscraper in Singapore’s CBD is expected to reach around S$482.3 million. CICT CEO Tan Choon Siang noted that CapitaSpring maintained an almost 100% occupancy rate as of June 30, 2025, backed by a diverse mix of high-quality tenants. Following the acquisition, CICT’s portfolio exposure in Singapore will rise from 94% to 95%, reinforcing its core market presence. The deal will be funded through a private placement expected to raise S$500 million, with the new units priced between S$2.105 and S$2.142. Management projects a 1.1% pro forma DPU accretion, assuming full ownership since January 2025, amid a continued global recovery in office space demand.
Fed’s Daly Signals Rate Cuts Are Nearing Amid Weaker Labor Market
Federal Reserve Bank of San Francisco President Mary Daly signaled that the time to begin cutting interest rates in the U.S. is drawing closer, citing weakening labor market data and a lack of broad inflationary pressure from President Trump’s tariff policies. Speaking on Monday (Aug 4, 2025), Daly acknowledged the Fed’s decision to hold rates steady last week at 4.25%–4.50%, but emphasized that every upcoming policy meeting is now a “live” meeting for possible adjustments. Daly maintained that two 25-basis-point cuts—still in line with projections from June—remain appropriate, though she left open the possibility of more, depending on incoming labor and inflation data. The July jobs report showed only 73,000 jobs created, with previous months revised sharply lower. While she doesn’t view the labor market as critical yet, Daly warned against waiting too long, arguing that monetary policy must now balance inflation control with sustaining job growth.
Japan Presses U.S. to Finalize Auto Tariff Cut Deal Amid Trade Concerns
Japan is urging the United States to promptly implement a tariff reduction deal on Japanese car imports, as agreed last month. Chief trade negotiator Ryosei Akazawa is scheduled to visit Washington on Tuesday (Aug 5, 2025) to push President Donald Trump to sign an executive order formalizing the agreement. Under the deal, U.S. tariffs on Japanese vehicles would drop from 27.5% to 15%, though no official start date has been announced. Japan is also seeking clarity on the “non-stacking” rule to prevent double tariffs and is pressing for equal treatment as the EU. Akazawa reaffirmed Japan’s commitment to the $550 billion strategic investment pact, clarifying that only a small portion will be direct equity.