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The US offers billions in Congo mineral investment after tariffs
President Donald Trump’s senior advisor for Africa revealed during a Thursday visit that the United States was in talks with Congo to invest billions in the mineral-rich country and to end a conflict that is raging there. The Democratic Republic of Congo has huge reserves of cobalt and lithium, among other minerals. It has been fighting Rwandan-backed M23 Rebels, who have taken over large areas of its territory in this year. The U.S., which on Wednesday sent shockwaves across the world by announcing a 10% baseline tariff on all imports, said last month that it is open to exploring critical minerals partnerships with Congo after a Congolese senator contacted U.S. officials to pitch a minerals-for-security deal. You have heard of a mineral agreement. After meeting Congo President Felix Tshisekedi, U.S. Senior Advisor Massad Boulos stated that the U.S. had reviewed the Congo proposal and "the president and I agreed on a way forward for its future development". On Thursday, the details of any possible deal or Congo's offer were not made public. The minerals of Congo, which are used to make mobile phones and electric vehicles, are currently controlled by China and Chinese mining companies. Boulos said that U.S. firms will be involved. Rest assured that American companies will operate transparently, and stimulate local economies. "These are multi-billion dollar investments," he stated. Joseph Bangakya is a Congolese MP and the president of a Congo - U.S. friendship group. He said that members were preparing legislation to improve the business climate in Central Africa. He said that achieving a trade deal with the United States was essential. Boulos said that the U.S. wanted to help bring peace to the east, where M23 has taken over two of eastern Congo's largest cities and thousands have died. He said, "We want to have a lasting peace which affirms the territorial and sovereign integrity of the DRC." "There is no economic prosperity without safety." (Written by Edward McAllister, edited by Mark Heinrich and Portia crowe)
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Canada's response to US tariffs
Mark Carney, the Canadian Prime Minister, announced on Thursday limited countermeasures against U.S. car tariffs. He imposed a 25% tax on vehicles imported from America that do not comply with the U.S. Mexico-Canada Trade Agreement. Carney, the man who succeeded Justin Trudeau last month as Prime Minister, stated that new tariffs will not apply to auto components and won't affect vehicle content coming from Mexico. Carney said that the new tariffs, which are estimated at C$8 billion, before a remission procedure for tariff relief will be paid directly to autoworkers and other affected parties. Donald Trump, the president of the United States, imposed tariffs of 25% on March 6 on all goods that were not in compliance with USMCA. On March 12, he imposed tariffs for steel and aluminum imports. A 25% import tax was implemented on autos on Thursday. He spared Canada global tariffs. Here are the retaliatory actions that Canada has already taken. First, Trudeau responded to Trump's initial tariffs by imposing 25% tariffs on C$30 Billion ($20.92 Billion) worth of goods imported from the U.S. annually on March 6. The C$30billion was part of a broader retaliation strategy that targeted C$155billion worth of U.S. goods imports, although the remaining C$125billion has been delayed. The first round of retaliation includes 1,256 items, including orange juice, peanutbutter, wine, spirits and beer, coffee and other beverages, as well as apparel, footwear and motorcycles. The value of imported products is C$3.5 billion for cosmetics and skin care, C$3.4 billion for appliances and household goods, C$3 billion for pulp and paper, and C$1.8 billion in plastics. Steel and aluminum tariffs will be imposed by Canada on March 13, 2025. The additional C$29,8 billion in imports from the U.S. will receive a 25% tariff. The tariffs are expected to stay in place until U.S. steel and aluminum tariffs against Canada are eliminated. Tariffs on steel and aluminum include a variety of products, including candles, glues and umbrellas, as well as kitchenware, gold and platinum jewellery, and other items. Trudeau said Canada was also considering non-tariff retaliatory actions, which could be related to vital minerals, energy procurement or other partnerships. Carney responded on March 25, when asked if nontariff measures like export controls or export taxation were on the table. Ontario Premier Doug Ford announced that all U.S. companies would be prohibited from participating in government contracts. Ontario has canceled its C$100m contract with Trump's ally Elon Musk and Starlink. Canada has frozen Musk's Tesla rebate payments and barred the electric vehicle maker from participating in future EV rebates. Toronto has stopped offering financial incentives to Tesla owners who purchase vehicles as taxis or ride-sharing services due to trade tensions with America.
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Market rout wipes out gains from hedge funds that use equity long/short strategies
On Thursday, global equity long/short funds lost their gains of the year as stocks plummeted after the Trump Administration announced sweeping tariffs. Goldman Sachs reported that the funds had fallen by 1.7% on the day. Long/short hedge fund performance was down 1.6% on the year as of Thursday. Losses by hedge funds on March 10 are the second big bump in one month. These funds take long positions and bet against other stocks. The funds fell by 1.5% in the morning hours of March 10, after portfolio managers unwound trades on single stocks amid fears that tariffs could send the economy into a recession. Hedge funds have already turned bearish with their pessimism A separate Goldman note last week said that the market is at a five-year high. The bank's use of leverage was still high and near record levels over the last five years. On Thursday, the tariffs shook global financial markets. The dollar and U.S. stock prices tumbled as investors fled to safe havens. S&P 500 fell 4.16% last, while Nasdaq dropped 5.3%.
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GLOBAL-MARKETS-Stocks sell off, US dollar weakens as Trump tariffs fuel economic worries
Stock indexes fell on Thursday with the S&P 500 falling more than 4 percent, the U.S. Dollar weakened, and oil prices dropped more than 6 percent as Donald Trump's U.S. tariffs caused investors to flee for safe havens like bonds and yen. The new 10% baseline tariff on imported products, plus the eye-watering tariffs that Trump imposed on dozens countries he claimed had unfair trade barriers, left traders frightened by their severity. Investors are concerned that a full-blown dispute over trade could lead to a global economic slowdown, and even inflation. The latest round of U.S. tariffs has hit a world economy still recovering from the inflation spike after the pandemic and is also dealing with geopolitical tensions. The euro rose by 1.53% against the dollar dollar . The dollar fell by 2.07% against the Japanese yen to 146.15. The Nasdaq fell more than 5% on the day, with shares related to technology being amongst the biggest drags. Apple's stock dropped 9.2% as a result of tariffs imposed on China, the country where it does most of its manufacturing. Amazon.com fell 7.9%, Microsoft dropped 1.5% and Nvidia fell 6.9%. As worries have grown, the losses are on top of trillions already lost by the "Magnificent Seven", tech giants. CBOE Volatility Index, also known as Wall Street’s fear gauge, reached a new three-week high of 26.91 points. Oil prices dropped and the S&P 500's energy sector fell more than 6%. Bruce Zaro is the managing director of Granite Wealth Management, Plymouth, Massachusetts. Investors adjust their outlook based in part on the possible impact of tariffs, said he, adding that "we have seen and will continue to see drastic reductions in earning estimates." This is going to take a while. The Dow Jones Industrial Average dropped 1,317.59 or 3.12% to 40,909.33. The S&P 500 declined 227.17 or 4.01% to 5,443.80. And the Nasdaq Composite was down 912.44 or 5.18% to 16,688.61. The MSCI index of global stocks fell by 23.64 points or 2.83% to 812.47. RECIPROCAL LEVY The 27-country EU block in Europe now faces a reciprocal 20% levy. The pan-European STOXX 600 Index fell by 2.57%. Trump's tariffs were particularly harsh on Asia. China received a reciprocal tariff of 34%, Japan was hit by 24%, South Korea with 25%, and Vietnam with 46%. In response, Vietnamese stocks fell 6.7%. The Nikkei 225 index fell 2.8%. Nigel Green is the CEO of deVere Group, a global financial advisory firm. He said: "This is what you do when you claim to supercharge the economic engine of the world." Pham Minh Chinh, the Vietnamese Prime Minister, has pledged that the country will maintain its economic growth goal of at least 8 percent for this year despite the U.S. placing a heavy tariff on Vietnam's exports. The rush to buy ultra-safe government securities that guarantee a steady income has driven down U.S. Treasury rates. The yield on the benchmark 10-year Treasury bill in the United States fell by 15.3 basis points, to 4.042%. It had previously fallen to 4.004%. This was its lowest level since October 16. The yield of the 10-year Treasury note is on course for its largest daily decline since August 2. The yields on government bonds in the Eurozone fell. Germany's benchmark 10-year yield dropped 7.5 basis points to 2.65% after reaching 2.625%. This was its lowest level since March 4. If tariffs cause recessions, the central banks of the world will likely lower interest rates. This is good for bonds. Fitch, a credit rating agency, warned that they could be a game-changer for the U.S. economy and global economies. Deutsche Bank said it was a moment "once in a life time" which could reduce U.S. economic growth by between 1%-1.5% this year. Olu Sonola, Fitch's director of U.S. Economic Research, said that many countries would likely be in a state of recession. If this tariff rate is maintained for a long time, you can forget about most forecasts. Fitch soon downgraded China’s credit rating citing steep U.S. Tariffs as the reason. The oil prices fell, with U.S. Crude down 6.5% to $67.05 per barrel and Brent down 6.24% at $70.27 a barrel. Gold reached a record-high above $3,160 per ounce but then lost steam. Spot gold fell 0.85% to $3,106.99 per ounce.
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Ecotourism helps revive mangroves in a Filipino surfing location
Del Carmen Mangrove Reserve is a new Ramsar Site Siargao is awash with illegal fishing and mangrove cutting Ecotourism and behaviour change are key to protecting the mangroves By Mariejo Ramos He was once an illegal fisher, who cut down tropical woody trees for fuel. Now he protects them in a civilian patrol force. We were forced to sell and cut mangroves because life was hard back then. "We couldn't find another job," Longos said. Workers like Longos are now part of the solution because the local government has been working to provide job training and cultivate an ecotourism enterprise. He proudly pointed out a mangrove baby he planted along the water. The mangroves in the area were reduced for decades by destructive fishing techniques like dynamite use and illegal deforestation to make wood for bread or charcoal. According to the local authorities, through replanting, the Del Carmen Mangrove Reserve has grown from 4,200 ha of mangroves to more than 4,800 ha. The Ramsar Convention on Wetlands (an international treaty named for the city in Iran, where it was signed, in 1971) that guides conservation of wetlands throughout the world, designated the reserve as a Wetland Reserve of International Importance in August 2024. Longos patrols the mangrove reserve from its viewing platform, earning him an honorarium each month of 9,000 pesos ($158). He uses his fishing boat to give paid tours of the mangrove reserve in his spare time. Del Carmen Mayor Alfred Coro says the stories of small town fishermen like Longos shows that even communities with limited resources can stop environmental destruction. He said that gaining the support of people through education, ecotourism opportunities and training is more important than policing. Coro said that for a long time, previous leaders in Del Carmen had been told it was impossible to persuade people to stop illegal mangrove harvesting and illegal fishing. He said that it took a decade for them to convince people of the importance of mangroves and to stop using illegal methods. He said that he was limited in financial resources and the majority of his efforts were done through dialogues between fishermen at their homes, as well as community-based campaigns to inform people about mangrove conservation. The local government started the tours, and now they are run by fishing groups. The tour fee is divided between the fisherman and his group, which amounts to about 600 pesos per trip. The town has been preparing for growth in tourism and development since last year when it was awarded the Ramsar certification. In 2023, more than half a millon tourists will visit Siargao, the highest number ever recorded. They are attracted to the impressive waves and surf spots in the area, which have been popular since the 1980s, when the sport began gaining popularity. SUSTAINABLE TOURISM Researchers fear that more visitors to Siargao could put strain on the natural resources of the island and cause waste problems such as plastic and marine debris. The Asian Development Bank found that an increase in Siargao waste is "attributable" to the surge of tourists. The study found that sustainable tourism could be implemented to protect marine life and support local incomes. Del Carmen's municipality has encouraged its residents to make money through eco-tours, and to take care of mangroves to ensure that tourism will support the community for a long time. Longos, a fisherman from the Philippines, was taught about mangroves' science and encouraged to participate in campaigns and replantings for their protection. Coro said that when they first started, "they had doubts." Since 2014, hundreds of illegal fishermen and mangrove cutters have become tourism operators. The town offers 100 ecotrips a day, says a local tourism official. These tours are staffed by guides, boat captains, and assistants. Coro said, "You can tell how much their lives have improved." The mayor stated that developing alternative sources of income has ripple effects on the local economy. Del Carmen, which was a town of the Philippines with the lowest level of income as a fifth-class municipality, became a third class municipality this year. Local government data revealed that the average monthly family income in Del Carmen increased from 2,000 pesos (34.95 USD) in 2010 up to 17,000 pesos (297.05 USD) in 2024. The poverty rate also decreased from 69% to 21% in 2010. The income of the town from tourism grew from 1.2 millions pesos (about $21,000) in 2020, to 9.2million pesos (about 160,381) by 2024. Longos says that by fishing legally and guiding ecotours he has been able to send all four of his children to school. Gina Barquilla said ecotours prevent overfishing, which may destroy mangroves habitats, because the income from tours encourages people to spend less money catching fish. A Task for the Community Barquilla said that mangroves in Siargao (a teardrop-shaped island) helped to protect the area from a powerful typhoon 2021. They also lessened the impact of strong waves and the rising sea level for coastal fishing villages. She has spent more than 10 years educating illegal fishermen and mangrove cutters at home and chasing dynamite fishing boats on the sea, despite threats and harassment. In rare cases, such as in February, fishermen have been arrested for using dynamite against schools of fish. She said that the best strategy is to go out and educate the local communities about the importance of mangroves, conservation and science. She and other ecotourism activists said that generations of families have survived off the money made from cutting mangroves. Therefore, educating youth is crucial, they said.
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Conagra, the tomato producer owned by Hunt's, may raise prices to offset tariffs.
Conagra Brands, the maker of Chef Boyardee, may need to raise prices to offset tariffs on cocoa, olive, palm and steel products used in its canned food, said CEO Sean Connolly on Thursday. Connolly said in an interview that the possible increases are meant to protect Conagra's profit margins so it can continue investing in its Chicago-based business and in new products. Connolly stated that he would "look at everything, from (seeing) whether there is an alternative supply source which is cheaper" to getting the most out of productivity programs. We'll also consider targeted pricing, because at the end, we need to protect our margins. On Wednesday, U.S. president Donald Trump announced new tariffs that will increase the cost of many consumer purchases. These include cars, wine, and electronics. Trump already imposed tariffs on aluminum and steel. Connolly stated that Conagra sources the majority of its tin-mill steel from overseas for their canned tomatoes and chili. Connolly stated that this type of steel was exempted from the tariffs Trump imposed during his first term because it is not commonly manufactured in the United States. The CEO stated, "We are a large canning business." All of them use tin-mill steel that is sourced outside the U.S. from different countries. Connolly confirmed that Conagra buys vegetables in Mexico. However, these purchases could be exempted from tariffs due to a separate agreement. Connolly stated that it was still too early to predict the size of price increases on food products. The Consumer Brands Association (a trade group that represents companies like Conagra) has been pressing the Trump administration to waive import tariffs for products such as tin-mill steel, which aren't available in the United States. (Reporting from Jessica DiNapoli, New York; and Ananya Marym Rajesh, Bengaluru. Editing by Bill Berkrot.)
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PBF restarts certain units at Martinez refinery following February fire. Fire-damaged units are still closed
PBF Energy said that it is restarting several refinery units at its Martinez facility, which were closed after an fire in February. According to the announcement, the units will restart on Thursday. The process should take two weeks. The company stated that any damaged units or those involved in the fire of February, such as the catalytic hydrotreater and the catalytic fuel plant, will be shut down and the restarting process will not start until the fourth quarter. A fire broke out on February 1 at the 157,000 barrels per day (bpd), Martinez, California refinery. The fire started near the 77.500 bpd hydrotreater catalytic feed, which uses hydrogen for removing sulfur from gas oil in order to produce unfinished gasoline using the 70,000 bpd cracker catalytic. The company's investigation team has been working to determine the cause of fire. It is expected to be completed by the end this month. A portable air compressor caught fire at the Martinez refinery on Wednesday night while it was being refueled. One person was injured. The fire was put out and had nothing to do with any of the refinery's process units. Reporting by Nicole Jao, New York; Editing by Franklin Paul and Elaine Hardcastle
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New York's precious metals are less expensive than London because they are not subject to Trump's tariffs
The Comex futures that are most active for precious metals have reduced their premiums over London spot prices after Washington removed the metals' import tariffs. This will encourage more metals to be flown to the United States. On Wednesday night, President Donald Trump announced reciprocal import tariffs that raised effective import taxes to levels not seen in the past century. However, there were some exclusions, including gold, silver, and platinum group metals. Last week, the premium between Comex futures and London spot prices stood at about $20 per troy-ounce compared to $43 on Tuesday. It is usually below $10. Silver and platinum futures premiums over London spot prices also dropped sharply. Few in the industry believed that bullion would end up attracting tariffs. The New York-London Arbitrage still moved a large amount of metals across the Atlantic, as speculators placed bets on the dislocation," said Adrian Ash. Now that metal looks like it is no longer needed. In December-March, gold and silver worth over $80 billion were delivered in Comex's warehouses. Import tariffs were a threat. The latest data from Comex (part of CME Group) shows that gold in U.S. warehouses has reached a record high of 44.5 millions troy ounces, worth $138 billion, compared to 17.1 million in Nov. when Donald Trump became U.S. president. Comex stocks currently equal five years' worth of U.S. gold and silver consumption. The price spread that the market measures through the exchange futures for physicals (EFPs) will not further decrease the premium until then. Robert Gottlieb is an industry expert and a former head of precious-metals at Koch Supply and Trading. He said that for the shipments reversed, EFPs had to go negative. This would allow one to sell London and purchase the futures contracts at a cheaper price. (Reporting and editing by David Evans; Polina Devlin)
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.
(source: Reuters)