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Carney, Canada's Carney, visits Asia in order to form new alliances with Asia and reduce US dependency
Mark Carney, Canada's prime minister, will make his first official trip to Asia this Friday. He is hoping to strengthen trade and security links at a moment when North America struggles to reduce its dependence on the U.S. Canadian officials have said that Carney's trip could include a meeting between him and Chinese President Xi Jinping in an effort to restore a relationship previously strained by a trade war. Donald Trump, President of the United States Termination of trade talks Canada responded to a political ad in Ontario that featured Ronald Reagan, the Republican icon who said tariffs caused economic disaster. Analysts believe Carney must explain to Asian leaders why Canada is not aligned to the U.S. president, who has threatened to annex Canada. Vina Nadjibulla is vice president of Asia Pacific Foundation of Canada. She said that Carney must make it clear to the world that Canada is not fragmenting and still supports rules-based globalization and trade. Canada signed a deal last month with Indonesia to provide duty-free access to up to 95% its exports to Indonesia in the coming year. Maninder Singh Sidhu, Canada's Trade Minister, said that the country is now focusing on agreements with Malaysia, South Korea, and Japan. Carney will attend meetings in Singapore, the Association of Southeast Asian Nations Summit in Kuala Lumpur and the Asia-Pacific Economic Cooperation Summit in South Korea. The White House announced that Trump will also leave for Malaysia on Friday evening and meet Xi next Thursday in South Korea. Carney may say he wants Canada to diversify its exports in the next decade but the country still depends on the U.S. about 75% for its goods. Fen Hampson is a professor at Ottawa's Carleton University who specializes in international affairs. She said that Canada has more business opportunities in Asia than Europe. Carney visited Europe three times since he became prime minister in march. Hampson stated that the economies of Southeast Asia were more dynamic, and therefore compatible with Canada's energy and commodity trade. Hampson noted that, despite this, any deal Canada makes with China would be affected by the geopolitical dynamics of the U.S.-China. Hampson stated that as tensions between the U.S.and China escalate, Prime Minister Carney will have less room to maneuver. Hampson said that he believed it would be hard to resolve Canada’s ongoing tariff disputes against China, such as those over canola or electric vehicles, without improved relations between the world's two superpowers. Hampson stated that the Americans put a lot of pressure on him to refuse to concede to his perceived rival. Former banker raises hopes for improved relations Many Canadians also fear closer economic ties with China. A recent poll conducted by Angus Reid for the Asia Pacific Foundation of Canada revealed that 59% of respondents still have a negative view of China, and only 14% believe Canada should pursue closer economic ties with China. Justin Trudeau, Carney's predecessor as prime minister, was responsible for the deterioration of relations between Canada and China. Canadian citizens were executed and detained by the Chinese government. Canada's security agencies concluded that China interfered with at least two federal election. Xi publicly scolded Trudeau for allegedly leaking their conversations to the media. Analysts believe Carney's experience as a central banker, and his credentials as an ex-central banker give him credibility that his predecessor lacked. Carney met with Chinese Premier Li Qiang in the last month, and said that he would be meeting senior Chinese leaders soon to "see how the trade relationship develops." In a region where protocol and customs are of great importance, the Prime Minister may still need to tread with caution. Isaac Stone Fish is the CEO of Strategy Risks a Chinese-focused business intelligence company. He said that whatever deals are made, it will be important to see how Carney behaves with Xi Jinping. Carney knows that if he appears to bow down to Xi, it will make him look weak. (Reporting and editing by Caroline Stauffer and Marguerita Choy)
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Wall Street to open with a higher opening after US inflation data
The European stock market struggled to find direction on Friday but was still on course for another weekly increase. Wall Street futures were boosted by data showing that U.S. Inflation rose less than anticipated last month. Wall Street closed higher on Friday, after the White House confirmed that U.S. president Donald Trump will meet Chinese President Xi Jinping as part of his Asia trip next week. The pan-European STOXX 600 index was flat at 1242 GMT, but it is still on course for a weekly increase. London's FTSE 100 rose by about 0.1%. INFLATION DATA Wall Street futures rose following the inflation data. S&P 500 E-minis were up 0.6%, and Nasdaq E-minis were up 0.9%. The MSCI World Equity Index was up 0.1% for a total gain of 1.3% on the overall week. The Consumer Price Index increased by 0.3% in September, after rising 0.4% in August. This was less than expected at 0.4%. Brad Conger said in an email that he expected the reading to be higher than usual due to tariffs being passed through into consumer prices. Our base case is that CPI will remain high over the next six months as final price adjustments." The U.S. Stock Markets have surged in this year and reached record highs, as traders invest money in artificial intelligence while betting that the U.S. Federal Reserve continues to reduce rates. Analysts claim there are signs that a bubble is forming. At its meeting next Monday, the Fed is expected cut rates by 25 basis point. After Friday's inflation report, traders increased their bets on rate cuts. Peter Fitzgerald, Chief Investment Officer for Macro at Aviva Investors, said: "It is a continuation in a generally supportive environment for equity markets where interest rates have been broadly falling across developed markets with Japan being the notable exception. Volatility has begun to drop again after a short spike, and there are no major earnings surprises." He said that it was impossible to know when or how a bull market would end. TRUMP CANCELS CANADA TRADE NEGATIONS The dollar index was 98.863, unchanged on the day. Trump's announcement on Twitter that he would be ending all trade talks with Canada had a limited impact on the Canadian dollar. The euro remained steady at $1.1628. Data showed that the euro zone's business activity grew more rapidly than expected in October. After the data, yields on euro zone government bonds rose. Germany's Bund reached 2.612%. The oil prices that had increased by 5% following the U.S. sanctions against major Russian oil companies have now eased down, but are still on course for a gain of 5% per week. Gold fell around 1.2% per day to $4,075.39 an ounce. It is on course for a weekly decline, ending its nine week winning streak. Apple and Microsoft are among the five companies that will be reporting earnings next week. Intel's earnings beat expectations on Thursday.
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VW says production secure for coming week despite chip dispute
Volkswagen's German plants will continue to operate normally in the next week, as it seeks to protect its supply chain against a dispute involving Dutch chipmaker Nexperia. However, the automaker warned that short-term impacts were possible. Sources told Reuters on Thursday that Volkswagen's main Wolfsburg plant production would continue as planned next week but there were uncertainties beyond that. The Chinese ban on Nexperia chips in automotive and other industries has caused supply chains to be shaken. Companies are now looking for alternatives, as they wonder how long their stockpiles will last. UNCERTAINTY RESURRES EVEN NEXT WOEEK. Volkswagen said that production at its German sites was secure until Thursday, October 30. In parts of Germany, where Volkswagen's Wolfsburg and Zwickau factories are located, the following day is a holiday. Volkswagen's spokesperson stated on Friday that "operations for the next week at all other German sites of the Volkswagen Group are also secured today as the current situation". Skoda, Seat and Porsche are all part of the group. The spokesperson added that the Volkswagen Group was in touch with potential suppliers and examining other sourcing options. CHIP SHORTAGES HITTING SUBSIDIARIES Nexperia does not supply Volkswagen or other automakers such as BMW and Mercedes directly. Its relatively simple computer chip is used in large numbers in car parts and impacts the supplier networks of companies more widely. On Friday, a regional representative of the German IG Metall union expressed concern about deteriorating conditions. Horst Ott said that some automotive suppliers have already announced furlough plans for their workers. He was speaking at an industry conference in Munich. Mario Gutmann, a member of the works council at IG Metall and a parts supplier Bosch, announced at an event that the company will be furloughing workers in its Salzgitter plant. When contacted, Bosch did not immediately comment on this matter. The union representatives did not name any other companies. Rachel More reported. (Editing by Jan Harvey, Mark Potter and Jan Harvey)
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Spain investigates steelmaker for violating Israel Sales Ban
The Spanish High Court has opened an investigation into privately owned steelmaker Sidenor, which is accused of selling steel to a firm in Israel for the purposes of manufacturing weapons. This is one of the potential legal consequences that could result from Spain's ban of such deals. According to a statement, Judge Francisco de Jorge will lead the investigation against Sidenor CEO Jose Antonio Jainaga Gomez as well as two other executives. They are accused of smuggling drugs and being complicit in crimes against humanity and genocide. On November 12, they were called to testify. The court ruled that Sidenor sold metal to Israel Military Industries (a subsidiary of Elbit Systems) in a transaction that was allegedly done without the approval or registration by the government. The High Court ruled that the executives "went forward with the deal knowing that (the company) was a producer of both heavy weapons and light weapons and that the materials sold were to be used in the manufacture of weapons." Sidenor didn't respond immediately to a comment request. Elbit Systems refused to comment. The investigation is a result of a complaint that was filed by the Association of the Palestinian Community of Catalonia in July. Spain, which recognized a Palestinian state in Gaza last year, was a vocal critic, describing Israel's actions as genocide multiple times, a charge the Israeli government denies. In September, Spain banned aircraft and ships carrying jet fuel or weapons to Israel from entering Spanish airspace or calling at Spanish ports. This was done to put pressure on Israel to stop its Gaza offensive. It also reinforced the prohibition on Spanish companies selling weapons and materials to Israel. Washington mediated a deal that brought Gaza into a fragile truce on 10 October. The restrictions were maintained. Emma Pinedo, David Latona (Reporting). Emily Rose contributed additional reporting from Jerusalem. Editing was done by Andrei Khalip, Joe Bavier and Joe Bavier.
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China proposes a more stringent plan for steel capacity swaps to curb overcapacity
China unveiled on Friday a proposal to implement a more strict steel capacity swap plan. This comes 14 months after the country halted its old programme, which failed to curb the rapid expansion of the industry, and left it with an overcapacity, which impacted profitability and led to a protectionist backlash. halted The existing steel capacity replacement program will be implemented on August 23, 2024. China's Ministry of Industry and Information Technology issued a statement that said the addition of new capacity to steel in key areas, transfer of capacity from non-key regions to key areas and capacity transfer between key areas were all strictly prohibited. Key areas refer to the Beijing-Tianjin-Hebei and surrounding areas, the Yangtze River Delta region, and the Fenwei Plain, according to the statement. It said that provinces and cities where the country has set clear targets for the total steel capacity of the country are not allowed accept transfer of capacity from another region. For every ton of new steel capacity, at least 1.5 metric tonnes of the old capacity must be removed. More efficient utilization of scrap steel to develop the cleaner electric-arc-furnace-based steelmaking in an organized way and the development of hydrogen metallurgy in appropriate regions are encouraged, it added. Reporting by Amy Lv and Ethan Wang, Editing by Louise Heavens
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European stocks drop as traders await US inflation data
The euro fell on Friday but was still on course for a weekly gain. Meanwhile, the dollar remained steady while market observers waited for U.S. Inflation data. Wall Street closed higher Thursday as the White House confirmed that U.S. president Donald Trump will meet Chinese president Xi Jinping as part of his Asia trip next week. The White House confirmed that Donald Trump would meet Chinese President Xi Jinping next week as part of his trip through Asia. The Shanghai Composite Index, which measures the performance of China's stock market, reached its highest level since August 2015. European markets opened higher but then fell in the course of the session. The pan-European STOXX 600 index was down around 0.2% at 1110 GMT but on track to gain a week. London's FTSE 100 fell by less than 0.1%. The MSCI World Equity Index was flat for the week, resulting in a gain of 1.2%. Wall Street futures are still up. S&P 500 E-minis rose 0.3%, and Nasdaq E-minis gained 0.5%. The U.S. Stock Markets have surged in this year and reached record highs, as traders invest money into artificial intelligent and bet on the U.S. Federal Reserve to continue cutting rates. Analysts claim there are signs that a bubble is forming. Investors awaited U.S. data on inflation, which was delayed because of the government shutdown. Consumer Price Index report (CPI), which is due to be released at 0830 ET (1230 GMT) is expected show that core inflation held steady at 3.1% during September. Next week, the Fed is expected cut rates by 25 basis points. Peter Fitzgerald, Chief Investment Officer for Macro at Aviva Investors, said: "It is a continuation in a generally supportive environment for equity markets where interest rates have been broadly falling across developed markets with Japan being the notable exception. Volatility has begun to drop again after a short spike, and there are no major earnings surprises." He said that it was impossible to know when or how a bull market would end. TRUMP CANCELS CANADA TRADE NEGATIONS The dollar index rose by 0.1% to 99.028, a new high for the day. The Canadian dollar was not affected by Trump's announcement on social media, that he would end all trade negotiations with Canada over what he called a fraudulent advertisement where Ronald Reagan, the late former president of Canada, spoke negatively about tariffs. Dollar-yen at 152.93. The yen fell as the new Prime Minister of Japan pledged to stimulate the economy. The euro remained steady at $1.1612. Data showed that the business activity in the Eurozone grew more rapidly than expected in October. After the data, yields on euro zone government bonds rose. Germany's Bund reached 2.612%. The oil prices that had increased by 5% following the U.S. sanctions against major Russian oil companies have now eased down, but are still on course for a gain of 5% per week. Gold fell around 1.6% per day to $4,058.41 an ounce. It is on course for a weekly decline, ending its winning streak of nine weeks. Bank of America Global Research reported that gold funds received their highest weekly inflow ever in the week ending Wednesday. Apple and Microsoft are among the five companies that will be reporting earnings next week. Intel's earnings beat expectations on Thursday.
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Trilogy Metals reports that key permits for Alaska mining roads have been reissued
Trilogy Metals, a Canadian miner, announced on Friday that the federal government had reissued key permits for a road planned in northwest Alaska to support future mining operations. Trilogy Metals' shares listed in the United States rose by over 8% during premarket trading. These permits were granted by U.S. agencies, including Alaska Industrial Development and Export Authority (AIDEA), the Army Corps of Engineers and Bureau of Land Management. This follows a recent order from the president to restore the approvals that were originally given in 2020. The Ambler mining district, Alaska is home to a trove of minerals and copper. Trilogy CEO Tony Giardini stated that the road would provide access to an area of mining which could strengthen the United States ability to secure supplies of copper, and other essential minerals. The White House announced earlier this month that it would invest $35.6 million in Trilogy Metals. This investment will make the U.S. Government a 10% stakeholder in the miner. The investment included warrants for an additional 7.5% stake. Trilogy, one of the key developers in Ambler, has a joint venture with South32, an Australian company. (Reporting and editing by Krishna Chandra Eluri in Bengaluru, Vallari Srivastava)
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Sources say that Reliance is racing to get orders for battery gear out of China before export restrictions.
Reliance Industries, owned by Indian billionaire Mukesh Amani, is hurrying to ship its battery component orders out of China before new export restrictions are implemented, according to two people who were briefed about the issue. This comes as global concerns grow over how Beijing plans to enforce its expanding export control regime. One source said that a team from Reliance had travelled to China in order to accelerate the work. Reliance, as well as the Ministry of Commerce of China, did not respond when asked for a comment. Due to the sensitive nature of the situation, the people refused to be identified. To maintain its competitive edge, Beijing has introduced new rules that require companies to obtain permission before exporting equipment for the battery supply chain. The new restrictions will take effect on November 8. The second source said that at least a dozen foreign customers in the Chinese battery industry are in the same situation as Reliance. Some of them were sacrificing quality assurance and other final stages of production to expedite the shipment of goods. The second source stated, "Who cares that it hasn't yet been painted or the screws checked?" They are saying that we will do the testing when it lands. Just get it out of the door. CHINA HAS A MAJOR ROLE in BATTERY SUPPLY CHAIN The person said that without the Chinese gear Reliance could not fulfill its plan to locally produce or assemble batteries to store the energy generated by its mega solar project, which is being promoted by the Indian Government to reduce dependence on fossil fuels. According to SNE Research, six of the top 10 battery manufacturers in the world are Chinese. People did not specify which Chinese companies provided Reliance. CATL, China’s largest battery manufacturer, stated in a press release that it is confident exports of its products to overseas factories will proceed smoothly under the newly implemented export regime. The export of materials and equipment needed for our European plants is proceeding as planned, it stated. China exported batteries worth $48 billion in the first eight month of this year. This is up 26% from the same period of last year. China's export of batteries adds to the concern that key technologies can be reliant on Beijing and become the subject of trade disputes. China's export restrictions on rare earths has highlighted the dangers of being dependent on a single supplier. Export controls introduced by China in April led to shortages which threatened to cripple global car production. The second source stated that Chinese battery manufacturers are assuring their foreign customers that there is no need to worry about such drastic changes for batteries. Export licences will be issued quickly and widely in the first few months after the new regime takes effect. In the meantime, foreign companies must play a waiting-game. The first source said, "It's a very tense atmosphere." (Reporting from Lewis Jackson in Beijing, Aditi in Delhi and Zhang Yan in Beijing. Editing by Brenda Goh & Jane Merriman.
Wildfires rave out of control near Los Angeles, killing at least 2
A minimum of 2 individuals were killed as a trio of fastgrowing wildfires raged out of control on Wednesday near Los Angeles, destroying numerous structures, sweltering hillsides and triggering officials to buy some 70,000 individuals to evacuate their homes.
Intense winds were hindering firefighting efforts and fuelling the fires, which have expanded unimpeded because they began on Tuesday.
The biggest blaze had taken in more than 5,000 acres in the picturesque Pacific Palisades neighborhood, which lies west of Los Angeles in between the beach towns of Santa Monica and Malibu and is home to many movie, television and music stars. More than 1,000 structures have actually been destroyed, Los Angeles County Fire Chief Anthony Marrone stated at a news conference on Wednesday.
Another fire, the Eaton fire, had grown to more than 2,000 acres as it burned some 30 miles (50 km) inland in Altadena, near Pasadena. Two fatalities were reported there, though officials stated they did not have additional information.
The Hurst fire, in Sylmar in the San Fernando Valley northwest of Los Angeles, had actually surpassed 500 acres. All 3 fires were 0% consisted of, officials stated.
A high number of considerable injuries had occurred amongst homeowners who did not follow evacuation orders, Marrone said.
Authorities alerted that the gusty winds were anticipated to continue throughout the day.
We are absolutely not out of threat yet, with the strong winds that continue to press through the city and the county today, Los Angeles City Fire Chief Kristen Crowley stated.
The skies above Los Angeles glowed red and were blanketed by thick smoke as the sun rose on Wednesday.
As the flames spread and locals began evacuating after the fires broke out on Tuesday, roadways were so jammed that some people deserted their vehicles to leave the fire. Emergency situation responders were going door to door to press evacuation orders.
California Governor Gavin Newsom stated a state of emergency on Tuesday.
Roughly 100 of the 1,000 public schools in the Los Angeles Unified School District were shut down, Superintendent Alberto Carvalho told journalism conference.
Pacific Palisades resident Cindy Festa said that as she evacuated, fires were this near the automobiles, showing with her thumb and forefinger.
Individuals left their vehicles on Palisades Drive. Burning up the hillside. The palm trees - everything is going, Festa stated from her vehicle.
David Reed said he had no option but to leave his Pacific Palisades home when law enforcement officer appeared at his door. They laid down the law, Reed said. He gathered his crucial belongings and accepted a. trip from officers to the evacuation center at the Westwood. Recreation center. I grabbed my trombone and the latest book I've been reading,. which is my Jack Kerouac anthology here, since I'm a beatnik,. he stated, adding that he could see flames approaching his home.
Pacific Palisades is among the most costly areas. in the nation. A typical home was valued at $3.7 million since. the end of 2023, according to Zillow, more than all however 4. other postal code in the United States.
AT LEAST THREE BLAZES
In the Pasadena area, the Eaton fire swallowed up homes, a. synagogue and a McDonald's dining establishment.
Practically 100 residents from a retirement home in Pasadena were. left, CBS News stated. Video showed elderly locals, numerous. in wheelchairs and on gurneys, crowded onto a smoky and. windswept car park as fire trucks and ambulances attended.
Around 188,000 homes and organizations in Los Angeles County. lacked power on Wednesday, data from PowerOutage.us. showed.
Several burn victims were treated after strolling toward. Duke's dining establishment in Malibu in the evening, the Los Angeles. Times reported, mentioning a fire authorities.
We're facing a historic natural disaster. And I believe that. can't be stated strong enough, Kevin McGowan, director of. emergency situation management for Los Angeles County, said at journalism. conference.
Firefighting aircraft scooped water from the sea to drop it. on the flames as they engulfed homes. Bulldozers cleared. abandoned cars from roads so emergency situation automobiles might pass,. television images revealed.
The fire singed some trees on the premises of the Getty. Rental property, a museum filled with valuable artworks, however the. collection stayed safe mostly due to the fact that nearby bushes had actually been. cut as a preventive step, the museum said.
Before the fire started, the National Weather Condition Service had. provided its highest alert for extreme fire conditions for much of. Los Angeles County from Tuesday through Thursday.
With low humidity and dry plant life due to an absence of rain,. the conditions were about as bad as it gets in terms of fire. weather condition, the service said.
Newsom stated the state had actually placed personnel, firetrucks. and aircraft in other places in Southern California since of the. fire danger to the larger region. California had actually protected federal. grants to suppress all 3 fires, he stated on Wednesday.
President Joe Biden said in a declaration over night that he. had been informed on the wildfires and had offered federal help.
(source: Reuters)