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BlackRock: US energy independence at risk from coal competition case
BlackRock, BlackRock is the largest asset manager in the world. It said that the U.S. support of a "baseless case" alleging asset management conspired to decrease competition in the coal industry risks undermining the goal of energy independence. The U.S. Department of Justice (DOJ) and Federal Trade Commission (FTC) filed a Statement of Interest on Thursday in the case brought by Texas and twelve other states against BlackRock, Vanguard and State Street Global Advisors. The states claim that the companies used their significant holdings in U.S. companies of coal to discourage competition. BlackRock stated in a press release that "DOJ's and FTC's backing of this baseless lawsuit undermines the Trump Administration’s goal of American Energy Independence." It said: "As we stated in our earlier motion for dismissal, this case is an attempt to rewrite antitrust laws and is based upon the absurd theory that coal company conspired with shareholders to reduce coal output." Asset managers will be unable to invest in their business and their employees if they are forced to divest their assets from coal companies. This could lead to higher energy costs. In a separate press release, SSGA called the case "baseless", adding that "we look forward" to presenting facts in the legal process. Additional filings do not change our assessment". Vanguard's own statement said that while it was "concerned" with "many of the legal interpretations that were promoted by the agencies", it "appreciated" their support for investing in passive funds, for shareholder advocacy to improve corporate governance, and for active investing which doesn't hurt competition. The facts showed that Vanguard had stayed within the framework of this concept, it stated. (Reporting and editing by Conor Humphries; Simon Jessop)
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Holiday schedule for US economic and other data
The Memorial Day federal holiday, which falls on May 26, will impact the release of major economic, energy, and commodity reports during the week ending May 25, due to the fact that Washington will be closed. The schedule is below. The times are in EDT/GMT. Some Treasury announcements may be subject to change. Monday, May 26, Memorial Day Holiday Closed federal government offices, Federal Reserve and International Monetary Fund. Stock and bond markets also closed. Tuesday, May 27, Commerce Dept. Commerce Dept. Federal Housing Finance Agency releases U.S. House Price Index, March 2009, 9am/1300 The U.S. Department of Agriculture releases weekly U.S. Export Inspections for Grains, Oilseeds at 1100 and 1500. Note: this week's inspections are delayed due to the holiday. Treasury Dept. Treasury Dept. Treasury Dept. weekly sale of 3-month and 6-month bills 1130/1530. Due to the holiday, this sale is delayed. Treasury Dept. Treasury Dept. USDA releases weekly Crop Progress for 1600/2000. NOTE: This is a delayed release from Monday, due to the holiday. Wednesday, May 28 Mortgage Bankers Association releases weekly Mortgage Application Survey, 0700-1100 Redbook releases weekly retail sales index 0855/1255. Note: Tuesday's publication has been delayed due to the holiday. Treasury Dept. Treasury Dept. Treasury Dept. Treasury Dept. Federal Open Market Committee releases minutes of its meeting on May 6, 1400-1800 The American Petroleum Institute releases the weekly National Petroleum Report, 1630/2030. Due to the holiday, Tuesday's report has been delayed. Thursday, May 29, Weekly Jobless Claims Reports by the Labor Dept. Labor Dept. Commerce Dept. Commerce Dept. National Association of Realtors releases Pending Home Sales for the Month of April, 1000/1400 Energy Information Administration (EIA), Weekly U.S. Underground Natural Gas Stocks, 1030/1430. Schedule is not affected by holidays Treasury Dept. Treasury Dept. Treasury Dept. Treasury Dept. EIA releases weekly petroleum stock and output data at 1200/1600. Note: time change on Wednesday. Freddie Mac issues weekly U.S. mortgage rates, 1200/1600 Treasury Dept. Treasury Dept. Federal Reserve Weekly Balance Sheet, 1630/2030 Friday, May 30, USDA releases weekly export sales, 0830/1230. Due to the holiday, this week's export sales are delayed. Commerce Dept. Commerce Dept.
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Perpetua requests up to $2 billion in loan from US EXIM to fund antimony project
Perpetua Resources announced on Friday that it had filed a formal request with the U.S. Export-Import Bank to receive potential debt financing up to $2 billion for its Idaho antimony-and-gold Stibnite Project. The project was approved for a loan of up to $1.8billion by the EXIM bank in 2024. Perpetua stated that the increase in application amounts reflects an estimated rise in job-years as indicated by the financial updates and basic engineering works completed in the first three months. In afternoon trading, the company's stock was up by nearly 4%. The Pentagon-backed project would be the first antimony mine in the country. Its estimated reserves are 148 million pounds, and the metal is used to make bullets, tanks, alloys, and batteries for electric vehicles. The administration of President Donald Trump has increased efforts to boost the production of essential minerals at home and to increase government funding as part of an overall effort to counter China's near total control of this sector. Perpetua has received the federal permit for the Clean Water Act Section 404 from the U.S. Army Corps of Engineers. (Reporting and editing by Shilpi Mahumdar in Bengaluru)
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Focus on next week's rate decision to determine the South African rand rate.
South Africa's currency, which is backed by commodities, was stronger on Friday against a weaker US dollar. This was helped by the higher gold price as investors rushed to the safe haven asset due to concerns over the worsening fiscal situation in the United States. At 1513 GMT the rand was trading at 17.88 per dollar, which is 0.7% higher than the closing price of Thursday. Last time, the dollar index fell by about 0.6% versus a basket currency. South Africa is one of the world's major producers of precious metals, and its currency benefits from higher gold rates. Gold prices rose more than 1% last Friday. Investors in South Africa will be focusing on the interest rate announcement by the South African Reserve Bank next week. In March, it cautiously maintained the rate citing inflationary risk from U.S. president Donald Trump's trade war with the world and the country’s disputed budget. Since then, Trump announced a 90 day pause on country specific tariffs. South Africa's inflation has dropped below the bank target range. And the finance minister has presented a revised Budget, abandoning his initial plan to increase value-added taxes, which was the most controversial element of his two previous attempts. In a research report, Lara Hodes, an economist at Investec, said that she expected rates to stay at 7.50% for the May meeting in accordance with the latest U.S. decision. "However, with inflation significantly below the midpoint in the target range and rand stronger than any time since months ago, it is possible that the MPC could decide to reduce rates by -25bp." The Top-40 Index on the stock exchange was up by 0.3%. Gold Fields, Harmony Gold, and AngloGold Ashanti are South African mining companies that last traded at a gain of about 3%. Sibanye Stillwater gained about 1% following the report of an accident in one of its mines that trapped 260 workers underground. The company reported that 79 miners have so far been brought up to the surface. The National Union of Mineworkers confirmed there had not been any deaths or injuries. The yield on the benchmark 2030 government bonds remained unchanged at 8.885%, a decrease of 1 basis point. Reporting by Sfundo parakozov, editing by Bhargav acharya and Gareth Jones.
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Platinum prices soar to a two-year high due to strong Chinese demand and tighter supply
The price of platinum surged up to a record high in two years on Friday. This was due to the sharp increase in Chinese imports and persistent supply concerns. Investors are also showing renewed interest in this metal, which is used in jewellery, catalytic converters and electronic products. Spot platinum reached its highest level in May 2023 at $1,096.40 an ounce. The metal has risen by 20% this year. Investors are looking at cheaper platinum as opposed to gold, which is why the fundamental support for platinum comes from the prospect of a third annual deficit in supply and increased demand for coins, bars and jewellery. The rise in platinum prices was attributed to speculation after the price broke through the psychologically important $1,000 per ounce level earlier this week. "China was an excellent physical buyer when the price was around $950/oz. A trader said that the spike above $1,000 would mute demand. Data released by the Customs this week shows that China imported 10 tons of platinum during April. This is the highest amount in a whole year, and represents a 47% rise compared to imports in March. Analysts noted that as gold prices reach record highs, investors are moving to platinum because it appears more affordable. Last month, spot gold reached a record high of $3.500.05 per ounce, thanks to strong investment demand and fears about tariff wars. The World Platinum Investment Council said this week that the demand for platinum jewellery has increased in China after a decline of over ten years. Concerns about the primary supply also support prices. In recent years, the price of platinum group metals, which are mainly used to neutralise harmful emissions in vehicles, has been impacted by the expansion of electric cars, reducing margins for miners. According to Metals Focus consultancy, there are still significant above-ground metal stocks. These cover the market deficit, and limit the upside potential for platinum and PGMs, as the demand from the automotive sector continues to decline. Palladium, the sister metal of platinum, fell below $1,000 on Friday after reaching a six-month peak of $1,042.70, on Wednesday. According to Tai Wong an independent metals dealer, its growth was boosted by Honda's move towards hybrids instead of EVs.
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TotalEnergies CEO defends the company against East Africa allegations
Patrick Pouyanne, the chief executive of TotalEnergies, defended his company's involvement in oil projects in East Africa after a U.N. independent human rights expert stated that the French firm must address new allegations of abuses. Michel Forst, Special Reporter on Environmental Defenders, said in a late-Thursday statement that the company should take immediate steps to protect activists connected to the East African Crude oil Pipeline and its associated oilfields. This decision followed the decision of German asset manager Union Investment, which dropped TotalEnergies bonds and shares from their sustainable investment funds due to this issue. Pouyanne spoke out against the East African project's alleged negative impacts on the environment and human rights during the annual meeting of shareholders. He said: "We develop these project with our values and principles, and we are confident of the benefits they bring to the countries and local populations." TotalEnergies, he said, is better suited to undertake projects such as the one in Uganda than other companies that may be less concerned about the environment and human rights. Union Investment announced that it made its decision following a review of a new report by the non-profit Just Finance International, which cited alleged abuses on the Kingfisher Oil site in Uganda as part of the pipeline. Forst stated that TotalEnergies failed to take any effective steps to address abuses of activists. It was "deeply disturbing" to see "it consistently reject the allegations as merely'misconceptions,' about the impact of the projects." Forst, a French company said TotalEnergies is bound by the Aarhus Convention (an agreement protecting the public's right to participate in environmental issues) to ensure that individuals are not penalised or hounded for their opposition to these projects. The company had earlier released a press release saying that it "doesn't tolerate any violence or threats against those who peacefully promote and defend human rights", and reminded those with whom it works of its position. The company said that it had worked with Ugandan officials "to ensure that the police followed due process, treated protesters well and respected their rights while detained". It said that the security team of their local unit monitors anyone arrested, and makes sure that their representatives can visit them. Forst supported the call from Union Investment to conduct an independent investigation of the alleged abuses. He asked TotalEnergies not only to make the results public, but also to act on any shortcomings.
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Ivanhoe disputes Zijin's statement about Congo mine problems
Ivanhoe Mines disputed on Friday the statement made by its Chinese partner regarding problems at their Kakula Copper Mine in Democratic Republic of Congo following seismic activity. Ivanhoe stated that the press release from Zijin Mining mentions '..multiple roof falling and rib-spreading in the eastern part of the mine'. It said "Ivanhoe Mines doesn't agree with this statement". "Preliminary evidence suggests that seismic activity... caused a redistribution underground of forces and caused'scaling,' or rockfalls, from the sides of certain mining areas." Ivanhoe said Tuesday that certain mining operations at the Kakula Underground Mine had been suspended on Sunday. The Kamoa Kakula Mining Complex is Africa's and the world's most important copper mine. The Friday update stated: "The teams are currently focusing on safely repairing the damage to the pipes and cables that support the underground pumping system infrastructure." Zijin Mining Group Ltd. warned earlier Friday in a release that the problems could have "adverse impacts" on the annual production guidance for Kamoa-Kakula complex of 520,000-580,000 metric tonnes in 2025. Last year, the mine produced 437,000 tonnes. Ivanhoe disputed this as well, stating that it could only know if production guidelines would need to change after an investigation. (Reporting and editing by Toby Chopra, Louise Heavens, and Eric Onstad)
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COMEX stocks surpass LME for the first time since 2022
The COMEX warehouses registered with the exchange have seen their copper inventories surpass those on the London Metal Exchange since March 2022. This is because traders are trying to take advantage of high copper prices in the U.S. which could lead to tariffs being imposed on metal imports. Stocks in warehouses of the U.S. COMEX exchange The number of metric tons has risen by 87% since the end February to 174 607 metric tonnes, their highest level in 2018. LME registered warehouses are different. Stocks have fallen to 164 725 metric tonnes, a 37% decrease since the end February. The global reorganization of copper inventories is a result of a directive issued by U.S. president Donald Trump in Feburary to investigate possible tariffs on imports of copper to rebuild U.S. copper production, which is critical for electric vehicles and power transmission. The premium of COMEX copper price over LME is currently $683 per tonne. This spread reached a record high of $1,572 per tonne in March, which highlights the divergence between these two markets. Alastair M. Munro, broker at Marex, said that the price premium attracted metal from other exchanges and caused pressure. In the LME, the spread between cash and the three-month contract of copper is also quite wide. The price of gasoline remains high, which indicates that the supply in the area is tightening due to the withdrawals. This decline is not limited to Western exchanges. China, which is the world's largest copper consumer, also sees inventory declines. Stocks at Shanghai Futures Exchange monitored warehouses This week, the number of metric tons fell by 9% to 98 671.
Researchers say climate change is responsible for South Korea's deadly blazes.
Scientists said that climate change made the worst wildfires ever seen in South Korea twice as likely. They also warned that such disasters may become more common if temperatures rise.
The fires that raged in the southeast of the country lasted for almost a week. They killed 32 people and destroyed around 5,000 structures before being brought under control at the end of March.
The fires spread over 104,000 hectares (257,00 acres), which is nearly four times as much land as South Korea's worst fire season of 25 years ago.
After combining observations with climate models, a 15-member team from the World Weather Attribution Group found that hot, windy, and dry conditions are now twice as common and 15% more intense.
South Korea is prone to fires during this time of year because of its cold, dry winters, and the rapid increase in temperatures in March and April. This was confirmed by June-Yi Lee, Research Center for Climate Sciences, Pusan National university.
She told a press briefing that this year's average temperatures between March 22 and 26 were 10 degrees Celsius above normal in the southeast. Patterns of low and high-pressure to the north and the south also generated powerful winds which helped the fire spread.
She said that the severity of this year's impact was extreme due to the dry weather and high temperatures.
If global warming continues to rise at its current rate, and by 2100 it has risen another 1.3 degrees, the weather conditions that caused fires may become more frequent.
Clair Barnes, of Imperial College London's Centre for Environmental Policy (ICL), said that the models predict an average increase of 5% and a doubling in the probability of similar extreme events.
Theo Keeping, at ICL's Leverhulme Centre for Wildfires, expressed concern that South Korea had become more fire-prone due to its extensive tree planting program since the 1970s. Forest management must be adjusted to cope with the extreme heat challenges, he said.
He said that once a wildfire is severe enough, it cannot be extinguished by drops of water sprayed from helicopters and planes. We must manage the risk before such events occur. Reporting by David Stanway, Editing by Lincoln Feast.
(source: Reuters)