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Japanese shares rout deepens after tech sell-off on Wall Street

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Japanese shares rout deepens after tech sell-off on Wall Street

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Japanese stocks ended an already turbulent week in a nosedive, dropping to a six-month low as global funds fled risk and the strengthening yen continued to squeeze speculators out of the so-called carry trade.

The broad Topix benchmark of Japanese stocks, which peaked at an all-time high in mid-July and had been one of the world’s best-performing indices of 2024, fell 5.5 per cent in the first hour of Tokyo trading on Friday.

The sell-off followed a 3.2 per cent fall in the Topix on Thursday and heavy overnight drops on Wall Street led by growing market concerns around the US economy and resilience of the tech sector.

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“We haven’t really seen these moves since Covid. Why are they so extreme? Because bad data in the US is now being treated as bad data,” said Takeo Kamai, head of execution services at CLSA in Tokyo. He added that weak economic data was now fuelling recession fears, whereas previously investors took negative US data as a sign that interest rates might come down and boost equities.

“Geopolitics and earnings are playing into this,” said Kamai. “Uncertainty is very high, and people are de-risking.”

The sell-off has been accelerated by heavily leveraged Japanese retail investors rushing to get out of a popular exchange traded fund, the Nomura NF Nikkei 225 ETF, traders said. The ETF fell 9.55 per cent on Friday as individual investors rushed to stem losses.

A 20 per cent plunge in Intel shares after US markets closed spooked Tokyo, where tech and semiconductor names have been among the most attractive to foreign investors.

Bellwether Japanese technology names, led by Tokyo Electron, SoftBank, Lasertec and Advantest all fell heavily in a rout that traders at two Japanese houses said appeared to have been led by large overnight sell orders from European and US long-only funds.

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“It’s been a profit-taking frenzy this week. The big funds are taking risk off the table, and Japan is being hardest hit after a very strong run and now a macro backdrop that looks less bright,” said one senior broker at a Japanese securities house. “How long will this go on? We are not seeing signs of strong support here.”

The selling targeted many sectors but hit financials and industrials especially hard. Mitsubishi Heavy Industries, the defence contractor whose shares had surged to an all-time high this year and which had been a favourite of foreign investors, has fallen more than 13 per cent this week.

Part of the damage has been the stronger yen, with a chill cast over Japanese manufacturers whose profits are heavily bolstered when the currency is weak, traders said.

The Bank of Japan’s unexpected interest rate increase on Wednesday and the implication that it has entered a rate-raising cycle, even as the US Federal Reserve appears poised to cut rates, has propelled the yen far higher than many had expected.

At Friday’s level of ¥149.6 against the dollar, the yen is now 7 per cent higher than it was in mid-July, and at a level that currency traders said was continuing to deter speculators from the huge bets against the yen that had been built up throughout 2024.

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For Japanese stocks, the dollar-yen rate has suddenly switched from tailwind to headwind, hitting exporters and forcing investors into fairly aggressive portfolio restructuring, analysts said.

“We don’t think that the Japan story is broken at this point, but the rules of the game have definitely changed,” said Bruce Kirk, chief Japan equity strategist at Goldman Sachs.

“The way investors have made money from Japan up until now and what will be required to make money from here will be different. So less focus on a narrow group of blue-chip exporters and more work around companies with higher domestic demand exposure.”

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Five years after the Surfside condo collapse, killing 98, what’s changed?

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Five years after the Surfside condo collapse, killing 98, what’s changed?

Andrea (left), Pablo (center), and Martin Langesfeld (right) hold a photograph of their daughter and sister, Nicky Langesfeld and her husband Luis Sadovnic, at a park in Doral, Fla., where the city named a street Nicky Langesfeld Place to honor her memory, Martin says, “as a reminder that she’ll be here with us forever.” Nicole “Nicky” and Luis were two of the 98 people killed when the Champlain Towers South condominium building collapsed in Surfside on June 24, 2021.

Meredith Nierman/NPR


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Meredith Nierman/NPR

SURFSIDE, Fla. — Just around the corner from where a beachfront condominium collapsed five years ago, there’s a makeshift memorial: a plastic banner strung up on a wood frame, with the names of the 98 victims, ranging in age from a year-old infant to a 92-year-old grandmother.

“It’s an unfortunate reminder of how big this tragedy was,” says Martin Langesfeld, locating the name of his sister Nicky, 26, and her husband Luis Sadovnik, 28. “It’s more than just names. It’s stories. It’s families.”

Two-thirds of the 12-story Champlain Towers South building collapsed just after 1 a.m. on June 24, 2021. It started when the pool deck caved in. Seven minutes later, as many of the occupants were sleeping, the tower began to fall.

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Five escaped, and three were rescued from the rubble with severe injuries by first responders. Search teams evacuated residents in the remaining part of the building, which was demolished 10 days later for safety reasons.

Search and rescue personnel work in the rubble of the 12-story condo tower that crumbled to the ground during a partially collapse of the building on June 24, 2021 in Surfside.

Search and rescue personnel work in the rubble of the 12-story, beachfront Champlain Towers South condominium that crumbled to the ground on June 24, 2021 in Surfside.

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Hundreds were left without a home and belongings, and the state was forced to grapple with how it regulates structural safety.

Langesfeld is among those who’ve been pushing to improve what they consider a lax system of building oversight. His sister and brother-in-law were newlyweds, who had moved into the condo together just a few months earlier.

“A dream place, home, where you feel you’re safest is where they were killed,” he says.

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He’s also frustrated there is no permanent memorial honoring the victims, while a new luxury condo is going up on the land where Champlain Towers once stood.

“It’s been almost five years and there’s no development for the memorial,” he says. “And the development for the new building is very well underway.”

The North Tower of the Champlain Towers condominium complex stands on April 27, 2026, overlooking the vacant site where its sister building, Champlain Towers South, collapsed on June 24, 2021. The collapse resulted in 98 deaths and remains one of the largest structural failures in U.S. history. A new luxury condominium complex, the Delmore, is slated for construction on the empty lot.

The North Tower of the Champlain Towers condominium complex stands on April 27, overlooking the vacant site where its sister building, Champlain Towers South, collapsed on June 24, 2021. The collapse resulted in 98 deaths and remains one of the largest structural failures in U.S. history. A new luxury condominium complex, the Delmore, is slated for construction on the empty lot.

Meredith Nierman/NPR


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Technical findings released Monday by the National Institute of Standards and Technology concluded the problem started about three weeks before the collapse when two connections between garage columns and the pool deck failed, causing cracks to grow and loads to shift to connections that were not strong enough to support them.

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Trump says proof of his allegations that vandals cut Reflecting Pool paint will be provided in court

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Trump says proof of his allegations that vandals cut Reflecting Pool paint will be provided in court

Washington — President Trump on Monday said proof will be provided in court of his allegations that vandals “cut” a massive slit in the Lincoln Memorial Reflecting Pool, which he claims is the reason the paint is peeling on the recently renovated but algae-plagued project. 

In an exchange with CBS News senior White House correspondent Ed O’Keefe, Mr. Trump insisted that vandals, rather than questionable craftsmanship, are responsible for the enduring problems following the $14.7 million sealant job. The president claimed vandals cut a 350-foot slit in the pool between the World War II Memorial and the Lincoln Memorial. Five people have been arrested for vandalism related to the Reflecting Pool, and five additional individuals were issued federal citations, according to the U.S. Park Police, although neither the company behind the project nor the U.S. Park Service has said a cut slit was responsible for the peeling. 

Asked if he had proof, such as photos or video, that vandals used a knife to cut a massive slit in the pool, Mr. Trump responded: “Well, let’s put it this way, when you have a 350, I think it’s 350, not 250, when you have a 350-foot slit, from one end to the other, you think that’s proof? You think that’s proof?” 

O’Keefe noted that reporters had been to the site and found no evidence of a slit.

“Well, you’d have to go see the Parks Department. They’ll show it to you, or see, see the secretary, but I saw it,” Mr. Trump said, likely referencing Interior Secretary Doug Burgum. “They cut it, they cut it very violently. The same thing with the floor, they cut it, and then they lifted it. They pulled it, and that’s what it is.”

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After defending the project, the president said, “We also have pictures.”

O’Keefe asked the president for evidence of his claims. 

“Yeah, at the right time you’ll see it,” Mr. Trump said. “You’ll see it in court. You’ll see it in court, but all you have to do is call the Parks Department, call the Department of Interior.”

Blue coating is seen among algae in the Lincoln Memorial Reflecting Pool Sunday, June 21, 2026, on the National Mall in Washington. (AP Photo/Jon Elswick

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Jon Elswick


The president also suggested someone may have placed fertilizer in the water to create the algae that teams have been attempting to clear. 

“If you put fertilizer in the water, you get algae, but somebody said they might have put fertilizer, they did something to create the algae,” the president said, again without providing evidence for his claims.

CBS News has reached out to the National Park Service and the Department of the Interior. So far, there’s been no response.  

Atlantic Industrial Coatings, which received a no-bid contract to install the sealant on the floor of the Reflecting Pool, told CBS News there are “some areas” that “require repairs.” 

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“These areas are a very small part of the massive 7-acre project, and do not indicate a failure of the liner,” the company said. “These repairs can not be made until the pool is drained. As soon as it’s feasible for the park, the pool will be drained and AIC will be back to make those needed repairs as part of the warranty.”

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Video: The Rise of Deadly Trucks and S.U.V.s

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Video: The Rise of Deadly Trucks and S.U.V.s

new video loaded: The Rise of Deadly Trucks and S.U.V.s

A once-steady decline in pedestrian deaths in the United States has reversed, even as other countries have grown safer. Michael Keller, a New York Times investigative reporter, used crash test results, 3-D visibility scans and real-world reconstructions to explore how the boom in taller, heavier trucks and S.U.V.s has changed what happens when a person is struck.

By Michael H. Keller, Danielle Ivory, Irineo Cabreros, Eli Murray, Gabriel Blanco and Joey Sendaydiego

June 22, 2026

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