Latest News
-
Morning bid Europe-It seems investors don't really like tariffs
Wayne Cole gives us a look at what the future holds for European and global markets. Investors are not happy with a trade war fueled by tariffs and a likely recession. Who knew? Wall St Futures and the Nikkei are both down about 3%. European stock futures have fallen around 1.7%. The Treasury yields have hit multi-month-lows while the dollar index has hit a six-month-low in chaotic conditions. The reaction matched the drama surrounding the announcement as President Donald Trump announced various taxes on live television from a large blue and yellow board. The list included 34% more for China, 20% for the EU, 32% Taiwan, 24% Japan, and 46% Vietnam. Included high levies on Asia were a clear shock for tech stocks, as it will increase costs across their supply chain. Apple shares fell 7% following the bell. Contrary to the arguments of the White House most analysts see the end of the free trade agreement as a shock for U.S. economic growth, and the likelihood of recession will increase. Fed funds futures rose in price to reflect 80 basis points in Fed easing in this year. This is true even though tariffs are sure to cause a sharp spike in U.S. inflation. Analysts have predicted price increases of up to $10,000 for new cars alone. Fed officials often say that they are willing to overlook a single increase in price, but this pandemic illustrates what happens when companies realize they can raise prices and then blame someone else. The White House has said it is open to horse-trading with other countries. The shifting sands will make it difficult for companies to plan investments over the long term. Then there are the countermeasures that will be taken as countries prepare to oppose Trump's world order. Ursula von der Leyen, President of the European Commission, was on the phone just moments ago to promise retaliation if negotiations failed. Students of history know that the Smoot Hawley Tariffs, implemented by the United States in the early 1930s, are what put the "great " in "the Great Depression". Are you trying to stay up-to-date with the latest news on tariffs? Our daily news digest provides a quick overview of the most important headlines that impact global trade. Tariff Watch is available here. The following are key developments that may influence the markets on Thursday. - EU Producer Prices, Service PMIs US trade data ISM services and weekly jobless claims. Fed Vice Chair Jefferson, and Governor Cook talk
-
London copper prices drop as Trump tariffs cause demand concerns
The price of copper in London fell on Thursday as the U.S. President Donald Trump's sweeping tariffs sparked concern about global metal demand. As of 0331 GMT, the benchmark three-month contract on the London Metal Exchange was down by 1.4% to $9,562 per kilogram. The contract had hit $9,507 earlier in the day. This was its lowest level since March 11. Trump announced on Wednesday that a 10% minimum tariff would be applied to most imported goods into the United States. Tariffs on products from more than a dozen countries are significantly higher, triggering a trade war around the world that could increase inflation in the U.S. as well as globally and impede economic growth. China demanded that the United States immediately rescind their most recent tariffs. It also promised retaliatory measures to protect its own interests in response to Trump’s tariffs against all U.S. global trading partners. The reciprocal tariffs sent shockwaves throughout today's stock and futures markets. The people are on edge as they anticipate what retaliatory duties other countries may levy. The specter of a escalating war on trade is the dominant force in the market," said a metals trader. Other metals include LME aluminium, which fell 1.2%, to $2460 per ton. Lead also dropped 0.7%, to $1955, while zinc fell 1.2%, to $2746, tin declined 3.0%, to $36,800, and nickel decreased 0.9%, to $15,825 per ton. Lead fell by 1.1%, to 17,155 Yuan. Nickel fell by 1.5%, to 127.380 Yuan. Tin fell 1.7%, to 288,640 Yuan.
-
NYK, Partners to Develop Renewable Energy-Powered Floating Data Center
NYK Line, NTT FACIITIES, Eurus Energy Holdings Corporation, MUFG Bank, and the city of Yokohama have signed a memorandum of understanding (MoU) for a demonstration project of an offshore green data center, utilizing a mini-float installed as a disaster countermeasure.On a mini-float, spanning 25 meters in length and 80 meters in width, installed off Osanbashi Pier in Yokohama City, the partners will test an offshore floating data center fully powered by renewable energy generated by solar power and battery energy storage systems.Based on the results, the partners will explore further developments in the waterfront and sea areas of Yokohama port.The demonstration project will involve installing a container-type data center, solar power generation equipment, and battery energy storage systems on a mini-float.The project aims to operate the data center entirely on renewable energy while assessing the equipment's salt damage resistance and operational stability in an offshore environment. The demonstration is planned to start in autumn 2025.“We expect the offshore floating green data center, which operates on 100% renewable energy, will become one of the new standards for future data centers and greatly contribute to the realization of a carbon-neutral society by operatiImage of Demonstration Project (Credit: NYK Line)ng entirely on renewable energy and emitting no greenhouse gases during operation. Through the demonstration, we will work to address various challenges to achieve this vision,” the partners said.Once realized, offshore floating green data centers will enable efficient utilization of offshore wind power, a promising renewable energy source.The project envisions situating these data centers near offshore wind farms to maximize the use of generated electricity without relying on or being limited by onshore power grids.Additionally, the approach is expected to address various challenges associated with onshore data center construction, such as land availability, shortages of construction contractors, and extended construction lead times.By utilizing renewable energy, leveraging Japan's vast maritime domain, and enhancing port functions necessary for constructing and maintaining offshore facilities, the project aims to contribute to both environmental preservation and the growth of digital infrastructure.
-
Tornadoes and heavy rains hit central, southern US
On Wednesday, tornadoes tore across the central and south of the United States, destroying houses and businesses as well as power lines and trees. By late Wednesday, the National Weather Service reported that at least 15 tornadoes had been reported in at least four different states. No immediate reports have been made of deaths due to the storm that also brought torrential rainfall and hail. The NWS warned that flash floods, tornadoes, and other dangers will continue until early Thursday. The NWS has forecast violent storms to continue ravaging the country for several more days. Wednesday is just the beginning of "a multi-day catastrophe and possibly historic heavy rain event." Scott Kleebauer is a NWS Meteorologist. This is a wide area of storms moving slowly eastward, stretching from Southeast Michigan to southeastern Arkansas. A tornado hit the town of Nevada in Missouri. The state's Emergency Management Agency wrote on social media that it caused "major damages to several businesses. Power poles were broken and several (empty train cars) were flipped over by the powerful tornado!" The NWS issued flash flood and tornado warnings in Missouri, Arkansas Tennessee, Mississippi, Indiana Illinois Kentucky and Oklahoma. The rain threat for Arkansas, Missouri Tennessee and Mississippi is being called a "generational flooding event". Some locations are forecast to receive as much as 15" (38.1 cm), which could cause rivers burst and cause "catastrophic floods." PowerOutage.us reports that more than 350,000 customers in the storm-hit region have lost power.
-
Iron ore prices fall due to US tariffs but steel demand remains resilient.
Iron ore futures fell slightly on Thursday, after U.S. president Donald Trump announced a wide range of reciprocal tariffs. However, seasonal demand for this steelmaking ingredient cushioned the fall. As of 0240 GMT, the most traded May iron ore contract at China's Dalian Commodity Exchange was down 0.2% to 789.5 Yuan ($108.12). The benchmark iron ore for May on the Singapore Exchange fell by 0.79% to $102 per ton. Broker Galaxy Futures stated in a report that U.S. Tariffs were more aggressive than anticipated and will have a negative impact on the ferrous market. Trump announced a minimum 10% tariff on goods imported into the United States on Wednesday, and much higher duties for products from dozens countries. This is a worsening of a trade conflict that could drive inflation up and slow down U.S. economic growth. The new tariff will total 54% on Chinese imports. Beijing demanded on Thursday that the United States immediately remove its latest tariffs, and promised countermeasures in order to protect its own interests. Steelmakers increased production during the construction peak season of March and April to cushion the price fall. Analysts at ANZ said that spot buying in China was booming as the construction industry picked up. They added that steel manufacturers were more confident about downstream demand. The recovery in steel consumption will encourage steelmakers in China to increase their hot metal production, according to a report by Mysteel. Coking coal and coke, which are both steelmaking ingredients, were down by 0.6% and 0.31% respectively. The Shanghai Futures Exchange saw a loss in most steel benchmarks. The price of rebar fell by 0.03%; hot-rolled coils dropped by 0.33%; stainless steel declined 1% while wire rod rose 0.24%.
-
What will the impact of Trump's reciprocal duties on Indian exports be?
The United States imposed a reciprocal tariff on India on Wednesday as President Donald Trump increased trade barriers for all goods entering America. Here are some key points to consider: INDIA TARIFF RATE & COMMENTS Trump announced reciprocal tariffs ranging from 10% to 49% for other countries. In a press release, the White House stated that while India charges a 70% tariff on imports of passenger vehicles, the United States only charges 2.5%. Apples from the United States are duty-free in the U.S. but India charges 50% on U.S. imported apples. Rice is taxed at 2.7% in U.S. and 80% in India. The statement said that the United States charges a zero percent tariff on networking switches and routers. India, however, imposes rates of 10-20% higher. The U.S. trade deficit with India is $46 billion. Which sectors may be hit the most? The U.S. tariffs will affect a total of nearly $14 billion in electronics and more than $9 billion in gems and jewelry. The 26% tariff does not apply to aluminium and auto parts, but they will still be subject to the 25% tariff announced by Trump earlier. According to the White House, energy products and pharmaceuticals, which together account for nearly $9 billion in exports from India, according to government data, are exempted under the new tariffs. According to the Global Trade Research Initiative, Washington's average sectoral tariffs against India in the past were 1.05% for automobiles, 2.12% for gems and jewelry, 1.06 % for chemicals and pharmaceuticals, and 0.41 % on electronic products. What are the tariffs that other Asian countries face? The U.S. imposed a reciprocal tax of 34% on China. Japan's exports will be subject to a 24% rate, Thailand will pay 36%, Bangladesh will pay 37%, Malaysia will pay 24%, Taiwan will charge 32%, South Korea will collect 25%, and Vietnam, 46%. Comment on Non-Tariff Barriers According to the White House, India has its own unique and duplicative testing requirements and certification standards in areas such as telecom products, medical devices, chemicals and other products. This makes it difficult for American companies selling their products in India. It said that if these barriers were removed the U.S. would see an increase in exports of at least $5 billion per year. INDIA – THE WAY Ahead The two countries agreed during Prime Minister Narendra Modi’s U.S. trip in February to begin talks toward a quick trade agreement and resolve their tariff standoff. India has been reported to be open to reducing tariffs for more than $23 billion of U.S. products sold to India. According to an Indian government internal report, India could gain market share by exporting textiles, footwear and apparel to the U.S. The report states that India is interested in increasing exports of iron-and-steel products, as it has the manufacturing expertise, "especially if China's tariffs are higher." Reporting by Shivangi Acharya, Aftab Ahmed and Raju Gopalakrishnan; editing by Raju Gopi Krishnakrishnan
-
London copper prices drop as Trump tariffs cause demand concerns
The price of copper in London fell by more than 1.5% Thursday as the U.S. President Donald Trump's sweeping tariffs sparked concern about global metal demand. As of 0131 GMT, the benchmark three-month contract on the London Metal Exchange was down 1.6% to $9,547 a metric tonne. The contract had hit $9,507 earlier in the day. It was its lowest level since March 11. Trump announced on Wednesday that a 10% minimum tariff would be applied to most imported goods into the United States. Tariffs on dozens of products could lead to a global trade conflict that would increase inflation in the U.S., and possibly hinder economic growth globally. The reciprocal tariffs sent shockwaves throughout today's stock and futures markets. The people are on edge as they anticipate what retaliatory duties other countries may levy. The specter of a escalating war on trade is the dominant force in the market," said a metals trader. Other metals include LME aluminium, which fell 1.4% to $2.456 per ton. Lead dropped 0.5% to $1.959, Zinc dropped 1.1% to 2.750, Tin was down by 2.4% to $37.030, and Nickel was down by 0.7% to $15.850 per ton. Lead fell 0.6%, and SHFE copper dropped 1.1%, to 78.970 yuan per ton. Nickel fell 1.1%, to 127.890 yuan. Tin fell 0.6%, to 291,940.
-
Trump's auto duties will cover over $460 billion in US vehicle and parts imports
According to an analysis of tariff codes in a Federal Register notice published on Wednesday, the 25% auto tariffs imposed by U.S. president Donald Trump will cover imports of auto parts and vehicles worth more than $460 billion annually. Last week, Trump updated his auto tariff announcement to include nearly 150 categories of auto parts that will be subjected to tariffs beginning on May 3. This is a month after the midnight activation on Thursday of 25% tariffs for vehicle imports. List includes codes for major components such as engines, transmissions and lithium-ion battery, but also less expensive ones like tires, shocks absorbers, wires for spark plugs and brake hoses. The list includes also automotive computers that are covered by the four-digit code, which includes all computer products including desktop and laptop computers as well as disk drives. According to U.S. Census Bureau figures, imports in this category will reach $138.5 billion by 2024. The total U.S. imports of vehicles and parts excluding this category were $459,6 billion. It was not immediately apparent the value of automotive computer, which is an essential component of modern cars and trucks, including electric vehicles, because there isn't a separate tariff code for them. The list of parts, as well as the timing for tariffs to be applied on May 3, was revealed just before Trump announced that all U.S. imported goods would face a 10% tariff, while many other countries were hit with reciprocal duties higher than this, meant to counter non-tariff barriers. Senior Trump Administration officials confirmed that autos and auto components subject to Section 232 National Security Tariffs will not be charged separate baseline or reciprocal duties. The auto tariffs are not stacked on top of the new, April 5th, reciprocal tariffs. The White House has directed the Commerce Department that domestic producers can request to have other parts imported targeted within 90 days. Importers of vehicles that qualify under the U.S. Mexico Canada Agreement's rules for origin can only pay 25% duty on the non-U.S. portion of their order.
Severe heat is closing schools, broadening finding out spaces worldwide
Hena Khan, a grade 9 student in Dhaka, has actually had a hard time to concentrate on her studies this week as temperatures surpassed 40 degrees Celsius (104 degrees Fahrenheit) in the capital city.
There is no genuine education in schools in this penalizing heat, she said. Teachers can't teach, students can't. concentrate. Rather, our lives are at danger.
Khan is one of more than 40 million students who have actually been. shut out of classrooms in current weeks as heatwaves have actually required. school closures in parts of Asia and North Africa.
As the environment warms due to the burning of fossil fuels,. heatwaves are lasting longer and reaching higher peaks as. typical temperature levels rise. In turn, federal government authorities and. public health professionals throughout the world are coming to grips with. whether to keep trainees discovering in hot classrooms, or. encourage them to stay home and keep one's cool.
Either choice has repercussions. About 17% of the world's. school-aged kids are currently out of school, according to. United Nations data, however the percentage is much larger in. establishing countries, with almost a third of sub-Saharan. Africa's children out of school compared to simply 3% in North. America. Children's test scores in the establishing world also lag. far behind industrialized nations.
Heat might make that even worse, broadening finding out gaps between. tropical establishing nations and established nations, experts. told , and even in between abundant and poor districts in. wealthy nations. But sending out children to overheated schools. could make them ill.
South Sudan already this year shuttered its schools to some. 2.2 million trainees in late March when temperature levels skyrocketed to. 45 degrees Celsius (113 Fahrenheit). Countless schools in the. Philippines and in India followed suit in late April.
On the other hand, Bangladesh continues to fluctuate between opening and. closing schools for some 33 million students amid pressure to. prepare students for tests - even as temperature levels reach. unsafe levels.
A lot of the nation's schools do not have fans, the. ventilation is bad, and they may have tin roof which. does not supply good insulation, said Shumon Sengupta,. Bangladesh nation director for nonprofit Save the Children.
On Monday, one day after resuming schools which had been. closed last week due to heat, Bangladeshi authorities once again. closed all primary schools and universities in. nearly half of all districts as temperature levels reached 43C (109F).
HOTHEADS
Even if trainees continue going to classes throughout. heatwaves, their education is likely to still suffer.
High temperatures slow down the brain's cognitive functions,. lowering students' ability to keep and process information.
U.S. high schoolers, one May 2020 research study found, performed. even worse on standardized tests if they were exposed to greater. temperatures in the year leading up to the examination.
The research, published in the American Economic Journal,. found that a 0.55 C (1F) warmer academic year decreased that year's. learning by 1%.
Much of that impact disappeared in schools that had air. conditioning, stated study co-author Josh Goodman, a financial expert at. Boston University.
Someplace between 40% and 60% of U.S. schools are thought to. have at least partial a/c, according to different. studies.
Schools that do not are normally discovered in lower earnings. districts which already lag behind their wealthier counterparts. academically. In the U.S. the typical performance of the lowest. income students has to do with four years behind the highest earnings. trainees, according to a 2019 research study in the National Bureau of. Economic Research.
Goodman and his coworkers discovered a similar knowing pattern. when they looked at standardized test data in other nations.
When [students in] these locations experience a year with more. heat, they appear to have actually found out less, he said.
That is stressing, Goodman included, since as the world warms. currently hot nations transferring to a very hot climate will. suffer more than temperate countries.
Environment modification will widen the learning gaps between hot and. cool countries, Goodman stated.
Some research study suggests extreme heat in the tropics can. impact a kid's education even before birth.
Kids in Southeast Asia exposed to higher-than-average. temperature levels in utero and early in life gotten less years of. schooling later on in life, a 2019 study in the Procedures of the. National Academy of Sciences discovered.
With many individuals in the area dependant on farming, high. temperatures could hurt food production and family earnings,. said study author Heather Randell, a sociologist at the. University of Minnesota.
If crops are harmed by heat, young kids may not get. enough to consume which can stunt their development, she said, and a. household might no longer be able to manage school fees, or could. pull children out of school to help on farms.
SCHOOL RULES
The variety of days that schools are closed for severe heat. have been ticking up in the U.S., however couple of countries track such. information.
U.S. schools are now cancelling class for approximately 6. to seven school days each year for heat, compared to about. 3 to four days a years back, stated Paul Chinowsky, a civil. engineer who led a 2021 study on schools and increasing temperature levels. for the firm Resilient Analytics, which consults for governments. and NGOs.
In Bangladesh, last year, schools were closed for 6 to 7. days, stated Save the Kid's Sengupta. But this year, they. are saying it might be closed for 3 to 4 weeks.
May is generally the hottest month of the year in South. Asia.
More closures fret him, Sengupta stated. When children are. not in school, they are more susceptible to child labour and. child marital relationship, according to NGO reports.
Bangladesh Education Minister Mohibul Hasan Chowdhury stated. on Tuesday that schools would be kept open on weekends if required. to complete the curriculum.
Choices on school closures, he included, will no longer be a. nationwide regulation but are to be made at the district level.
(source: Reuters)