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Volkswagen suppliers are on the list of RPT-Beijing's first export permits for rare earth magnets
Sources in the industry said that China had granted export permits to four rare earth magnet manufacturers, including Volkswagen, the German automaker. This was the first time since Beijing restricted shipments a month ago. It is a sign the flow of critical materials will not be stopped. Three sources confirmed that Baotou Tianhe Magnetics - which produces magnets for electric and hybrid cars - received a license from Volkswagen at the end of April. Three sources said that Baotou Tianhe Magnetics, which makes magnets used in electric and hybrid car motors, received a licence for Volkswagen at the end of April. Volkswagen responded to questions by saying that it was in constant contact with its suppliers. It had also received information that the Chinese government has granted export licenses to a small number of magnet suppliers. Two sources confirmed that Zhongke Sanhuan had received at least one license. Baotou INST Magnetic, Earth-Panda Advanced Magnetic Material and Baotou INST Magnetic were all granted at least one license. Sources declined to name themselves due to the sensitive nature of the issue. Requests for comment from the four magnet manufacturers and China's Commerce Ministry were not immediately responded to. Beijing has not yet confirmed whether all four companies have received export licenses. According to one source, export permits are only granted for suppliers who have customers in Europe or Vietnam. The permits were issued prior to the Monday truce in the trade war with Washington, according to industry sources. This is likely to make approvals easier for U.S. clients. Beijing issued the permits within a month of its earlier restrictions on seven rare-earth elements and related materials in response to U.S. president Donald Trump's tariffs. The industry had expected a lengthy wait. Sources said that the permits were the very first ones issued since Beijing implemented its restrictions. China is the dominant supplier of rare earths used in clean energy, defense, and auto manufacturing. Companies have very few alternative suppliers. Volkswagen's involvement and lobbying by other large Western users demonstrate this dependence. Elon Musk revealed last month that Tesla was in discussions with Beijing about licenses for its Optimus robotics. Reporting by Beijing Newsroom and Christoph Steitz, Frankfurt; Editing done by Lewis Jackson, Tony Munroe and Kirby Donovan
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Trump praises Saudi Crown Prince, signals renewed alliance
Four years ago, Saudi crown prince Mohammed bin Salman was unable to meet with the then-President Joe Biden. Biden said that he wanted the Gulf nation to be a pariah because its leader had allegedly ordered the killing of a Washington journalist. Donald Trump praised Saudi Arabia's de-facto ruler in a gushing manner on Tuesday. He called him "an incredible guy" and "a great guy", and did not mention the human rights situation within the country. "I like him very much." "I like him too much," Trump exclaimed as the cameras flashed, and the crowd applauded. The summit was held in Riyadh to kick off his first major overseas visit of his second term. The affectionate display for a leader who has a controversial history was reminiscent of Trump's first tenure, when he formed an alliance with bin Salman which grew stronger through mutual flattery and deals. The relationship is still based on shared interests. Trump wants to achieve major economic gains and revive the U.S. presence in the region. Bin Salman, meanwhile, seeks advanced technology, military assistance, and a powerful partner in his efforts to modernize Saudi Arabia, and assert regional leadership. Trump announced at the summit a $142 billion deal on defense and a $600 billion Saudi investment package that included artificial intelligence, infrastructure, and energy. Trump's relationship with the Crown Prince has sparked criticism by U.S. legislators, human rights organizations and foreign policy analysts. They viewed it as a prioritization of economic interests above human rights. Bin Salman denied any involvement in the murder of journalist Jamal Khashoggi and cited reforms like expanding women's right as proof that progress had been made. However, analysts say these reforms have been undermined by continuing crackdowns against dissent and freedoms. Trump's relationship with bin Salman has a much warmer tone than that of his predecessor in the White House. Biden's relationship took a more friendly turn with bin Salman, too. From initial criticism to a pragmatic cordiality. BIDEN PICKS RESET In 2019, the Democratic President promised to make Saudi Arabia "a pariah" on the international stage because of Khashoggi's murder and its human rights record. Geopolitical realities, such as the soaring oil prices in 2022 due in part to Russia's invasion in Ukraine, have highlighted the need for Washington and Riyadh to work together. Biden decided it was time for a new strategic relationship and visited the crown Prince in July 2022. Some criticized the gesture as being too friendly, given concerns about human rights. White House officials insisted that it was to reduce Biden's chances of contracting the COVID-19. The relationship improved rapidly as his administration sought to broker a deal that would normalize Saudi-Israeli ties in exchange for an expanded U.S. Defense Agreement. The effort was halted by the attack on Israel by Hamas in 2023 and Israel's subsequent conflict with Gaza. During Trump’s visit to the United States on Tuesday, the Crown Prince personally welcomed the U.S. President, escorting up an escalator, and then driving him in golf carts ahead of a State Dinner. Trump, in a move that underlined their close relationship, pledged to lift U.S. Sanctions on Syria. He said that bin Salman had requested this dramatic action. Trump said: "Oh, I do for him." The crown prince then placed his hands on his heart, and a standing applause followed. (Reporting from Gram Slattery and Nandita in Riyadh, with additional reporting by Andrea Shalal; Writing by Nandita, and Editing by Colleen, Jenkins, and Cynthia Osterman.)
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Mexico expects early USMCA review to give clarity to investors and consumers
Mexico's Economy Minister said that the country hopes to begin a trilateral review with the U.S., Canada and other countries in the second half this year. This will provide more clarity for consumers and investors. On the sidelines of an event organized by the Ministry of Finance with local firms, Economy Minister Marcelo Ebrard said to journalists: "We expect that we will start discussions in second half of this year." He added, "We hope that they will happen as quickly as possible and we can come to an agreement as soon as." Next year, the USMCA will be reviewed. The US President Donald Trump wants the agreement renegotiated in advance. Ebrard stated that the early review of trade policies could make it "easier" and "clearer" for consumers and investors to understand. Ebrard announced on Monday that he expects the review to start earlier than scheduled. He said, "That would be convenient for us." It would be clearer to us as to how the treaty will function in comparison to other parts around the world. The USMCA is still in force despite the ongoing U.S. Tariffs. It currently impacts the shipments of steel and finished automobiles from Mexico to the United States. Ebrard said that Mexico was working on negotiating more favorable terms to export steel, aluminum and automobiles to the United States.
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Senator says that the US Department of Health will reverse federal layoffs for coal safety workers
Shelley Moore Capito, West Virginia Republican senator and former federal employee who screens coal miners for black lungs disease and conducts research on other respiratory diseases who were terminated in a sweeping government layoff have their jobs permanently restored. Capito stated in a press release that she received an assurance from Health Sec. Robert F. Kennedy, Jr., that the Department of Health and Human Services had reversed the terminations of staff at the National Institute for Occupational Safety and Health in Morgantown, West Virginia. In a press release, she stated that "my understanding is from Secretary Kennedy that over 100 Morgantown workers will return to their jobs permanently." NIOSH operates a coal mine surveillance unit, which has been effectively closed since February due to sweeping layoffs by Elon Musk’s Department of Government Efficiency. This is despite the fact that black lung disease, a deadly respiratory condition, has resurged in coal miners. Reports had stated that these potential job cuts as well as the cuts made at the Mine Health Safety Administration put coal miners in danger, despite the fact that President Donald Trump was calling for a revival of this industry. Status of NIOSH employees has been changing. Some workers were brought back from administrative leave in the beginning of this month only to find out a few days later that their employment was terminated permanently. Capito stated that she spoke with Kennedy several times, urging him to rescue the program. John Howard's letter to NIOSH staff today said that former employees were being called back. This includes employees from the director's office of NIOSH, the Respiratory Health Division, which includes the coal mine monitoring unit, the National Personal Protective Technology Laboratory, the Division of Safety Research, and the Division of Compensation and Analysis Support. Two sources familiar with the story said that 21 of the 28 DECA staffers who handle compensation claims for former nuclear workers with cancer were brought back. Uncertain is the percentage of NIOSH staff that have been recalled. Over 90% of NIOSH staff were terminated earlier in the month. Kennedy will appear before Congress on Tuesday, and he's likely to be asked about the mass layoffs that occurred at HHS.
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US inflation data boosts global equity markets; dollar falls
On Tuesday, the dollar dropped and major U.S. indexes rose after news that U.S. Consumer inflation increased less than expected in May when President Donald Trump announced a series of tariffs which has caused havoc on international markets. European shares rose for the fourth session in a row, while global stocks also gained. Crude oil prices increased, thanks to a temporary reduction in U.S. - China tariffs. The U.S. announced on Monday that it would suspend its trade war with China for 90 days. They will reduce reciprocal duties, and remove other measures as they negotiate a permanent agreement. The agreement has reignited the appetite of investors for stocks, commodities, and cryptocurrencies. Tuesday's inflation numbers have also helped fuel this move. The Bureau of Labor Statistics reported that its consumer price index increased by 0.2% in April. This brings the annual growth down to 2.3%, from 2.4%. Economists polled had predicted a rise of 0.3% per month and 2.4% annually. Bill Adams, chief economics officer at Comerica Bank, Dallas, wrote in a letter that the report was a good one. In 2025, inflation should be manageable by most consumers and business. S&P 500, Nasdaq and Dow Jones advanced due to softer than expected inflation figures and a easing in U.S. China trade tensions. The S&P500 rose 42.36, or 0.72 percent, to 5,886.55 while the Nasdaq Composite gained 301.74, or 1.61 percent, to 19,010.09. Under pressure from UnitedHealth, the Dow Jones Industrial Average dropped 269.67 points or 0.64% to 42140.43. The company had suspended its annual forecast after its CEO resigned and UnitedHealth had suspended its annual projection. Dollar retreated from its sharp gains of the previous session due to the inflation data. Last seen down by 0.79% versus a basket. The euro increased by 0.94% to $1.1191. Peter Cardillo is the chief market economist of Spartan Capital, a New York-based firm. The European stock market ended the day slightly higher with a 0.1% gain, their highest level since March. Emerging Market Stocks fell by 5.03 points or 0.43% to 1,156.82. The broadest MSCI index of Asia-Pacific stocks outside Japan closed at 603.95, while Japan's Nikkei gained 1.43%, to 38183.26. After the Geneva talks, the U.S. announced it would cut tariffs for Chinese imports from 145% to 30%, while China announced it would reduce duties on U.S. imported goods to 10%, from 125%. The change in U.S. China trade relations has caused traders to reduce expectations of Federal Reserve rate reductions, believing that policymakers will have more flexibility to lower rates as inflation risks decrease. The traders are now pricing in a 56 basis point reduction this year. This is down from the forecasts of over 100 basis points made in April when concerns about Trump's tariffs reached their highest level. Cardillo stated that "the Fed is on the right track and until there are any real changes in terms of ending the trade war by June, a rate cut in June remains in doubt." Economists and fund managers have stated that the 90-day break is welcomed, but it hasn't changed the larger picture. Christopher Hodge is the chief U.S. economics at Natixis. The ratings agency Fitch estimates that the U.S. tariff rate has dropped to 13.1% from 22.8% before the agreement, but is still above the 2.3% at the end 2024. The yield on the benchmark U.S. 10 year note rose by 1.6 basis to 4.473%. The yield on the 2-year U.S. note, which moves typically in line with expectations of interest rates for the Federal Reserve rose by 0.2 basis to 4.004%. Spot gold increased 0.61%, to $3,253.51 per ounce. U.S. Gold Futures closed 0.6% higher, at $3,247.80. Brent crude futures settled on $66.63 per barrel, an increase of $1.67 or 2.57%. U.S. West Texas Intermediate Crude finished at $63.67 up $1.72, or 2.78%.
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Jose Mujica was Uruguay's former rebel leader, icon of cannabis reformation and former leader. He died at the age of 89.
Jose Mujica has died at the age of 89. He was a former guerrilla who became president of Uruguay. His unpretentious manner and progressive reforms won him countless articles in international media. Mujica's straight-talking style, which is known by many Uruguayans as "Pepe", was the driving force behind the leftist government of this small South American nation from 2010 to 2015. He did so after convincing voters that his radical past had been closed. In a message on X, President Yamandu Orsi wrote: "It's with great sadness that we announce the passing of our comrade Pepe Mjica." "Thank you for all you did for us, and for the deep love you have for your people." Mujica, as president of Colombia, took a liberal position on civil liberties issues that was considered groundbreaking at the time. Mujica signed laws allowing homosexual marriages and abortions during early pregnancy. He also supported a proposal for legalizing marijuana sales. Both were major shifts for Latin America's Catholic Church, while the second was almost unheard of at the time. Mujica chose to remain in his modest house in a suburb near Montevideo, where he ran a small farm, during his tenure as president. He was often seen driving around in an old VW Beetle and eating at restaurants downtown where office workers ate lunch. He also avoided wearing a suit and tie. In an interview in May 2024, in the same house with a tin roof that he and his wife, the former senator Lucia Topolansky shared, he stated that he still had the old Beetle in "phenomenal condition". He added that he liked a tractor ride because it was "more enjoyable" than driving a car, and you have "time to think." Mujica was criticized for his tendency to ignore protocol. His blunt, and sometimes uncouth, statements forced him, both under the pressure of political opponents and allies, to explain himself. His down-to earth style and progressive thoughts won him the hearts of many Uruguayans. Mujica stated during the interview in 2024 that "the problem is that people are running the world by old folks who have forgotten what it was like to be young." Mujica was 74 years old when he became President. He received 52% of votes, despite concerns from some voters about his age. Lucia Topolansky has been Mujica's partner since their Tupamaros days. She served as her vice president and they married in 2005. They remained active in politics after leaving office. They attended the inaugurations in Latin America and gave crucial support to candidates in Uruguay including Orsi who assumed office in March 2025. The couple stopped growing flowers in their smallholding, but continued to grow vegetables. Topolansky would pickle tomatoes each season. BARREN BACKS Jose Mujica was born in 1935 on his birth certificate, but he claims that there was a mistake and he was born one year earlier. He described his childhood as "dignified poverty." Mujica lost his father when he was between 9 and 10 years old. As a child, he worked with his mother to maintain their farm where they raised chickens and cows. When Mujica first became interested in politics in Uruguay, the left was weak and fragmented. He began his career as a politician in the progressive wing of center-right National Party. He joined the Marxist Tupamaros Guerrilla Movement in the late 1960s. The group was a Marxist guerrilla that sought to weaken Uruguay’s conservative government by committing robberies and political kidnappings. Mujica said later that he had never killed anyone, but was involved in violent clashes between police and soldiers. He was also shot six times. The Uruguayan security forces had the upper hand on the Tupamaros when the military took power in 1973. This marked the beginning of a 12 year dictatorship during which 200 people were killed and kidnapped. Many more were imprisoned and tortured. Mujica spent nearly 15 years in prison, most of them in solitary confinement. He slept at the bottom a horse trough, with nothing but ants to keep him company. He was able to escape twice. Once by tunneling through a house. He later admitted that his biggest "vice" was talking to himself as he neared 90. This was a reference to the time he spent in isolation. Mujica returned to politics after the restoration of democracy in the 3 million-person farming country, and gradually became a prominent leftist figure. He was the agriculture minister of Tabare Vazquez's center-left coalition, which would succeed him as president from 2015 to 2020. Mujica had a strong support base on the left, but he also maintained a fluid dialog with his opponents in the center-right by inviting them to barbecues. We can't pretend that we agree on everything. "We have to accept what is and not what we want," he said. He believes that drugs should be decriminalized under "strict state control" and that addiction needs to be addressed. "I don't defend drug use. "I cannot defend (a prohibition) because we now have two problems, drug addiction which is a serious disease and narcotrafficking which is even worse," he said. He remained optimistic in retirement. After a cancer diagnosis, he told the youth: "Life is beautiful but it wears you out and you fall." The point is to begin again every time you fall. If there is anger in your heart, turn it into hope.
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US Farm Agency restores climate-related pages after farmer's lawsuit
After being sued by environmental and farm groups, the U.S. Department of Agriculture has restored some climate change related webpages it had removed since the inauguration of President Donald Trump. Trump's administration has frozen or canceled funding for climate-friendly farming, claiming that the work is not in line with its priorities. About 11% of U.S. greenhouse gas emissions are attributed to agriculture. According to a lawsuit filed by the Northeast Organic Farming Association of New York on February 24, the Natural Resources Defense Council and the Environmental Working Group, a USDA official instructed staff to remove any pages focused on climate changes on January 30, which led to the removal of information on loan and funding options, investment through the Inflation Reduction Act and policy documents. In a Monday court filing, the USDA stated that it would restore all pages removed and complete the restoration in two weeks. The USDA didn't immediately respond to our request for comment. Nydia Gutierrez, a spokeswoman for Earthjustice who represented the plaintiffs, confirmed that on Tuesday some pages detailing IRA funded clean energy projects had been restored. Farmers rely on USDA websites to protect them from extreme weather, wildfires and droughts. In a press release, Earthjustice's Jeffrey Stein said that he was ready to make sure USDA kept its promise to restore the resources. (Reporting and editing by Sandra Maler; Leah Douglas)
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Deutsche Boerse, Euronext step up battle against IPO flight to US
In the face of U.S. competitors, two of Europe's largest stock exchange operators have stepped up their efforts to keep local IPOs. Marketing and research are challenging the perception that New York listed companies command higher valuations. The stock exchanges of Europe and the UK were hit by a lack of IPOs during the last two years. A number of local companies have chosen to float in the U.S. because of its larger pools of capital, and higher valuations. Deutsche Boerse (which operates the Frankfurt Stock Exchange) warns of sluggish post IPO performance, increased costs, and the threat litigation for firms listing in the U.S. The study found that two-thirds (including Germany) of the companies listed in Europe rose on their first trading day, whereas only half of European companies listed in the U.S. saw their stock rise on their debut. Over time, the European IPOs also performed better than those in the United States. The data does not mention valuations at IPO. However, the exchange highlighted several examples in its report of European listed companies trading at a higher premium than their U.S. listed peers. Euronext operates seven markets, including Amsterdam and Paris. It plans to reissue the same paper, challenging the belief that U.S. listed firms are valued higher than their European counterparts, its spokesperson said. Stefan Maassen is the head of capital market and corporates for Deutsche Boerse. He said: "We see more of a competition between Europe and U.S. markets in terms of listing, than within Europe." Exchanges receive fees from companies listing on their platforms, as well as from brokers who trade securities. They are considered essential by policymakers in attracting investment. DEEP MARKETS The US capital markets' size and depth are attractive to those who want to list their companies. According to LSEG, based on the closing prices of Monday, the S&P500 has a capitalisation of almost $49.5 trillion. This is four times more than Europe's Stoxx 600. Officials in Europe are also considering new listing regulations to improve the access to finance. The London Stock Exchange, which in March circulated a document titled "Mythbusting", questioned the perception that U.S. listed companies are valued higher than those in London. In its document, Deutsche Boerse said that it had found the average share price of U.S.-listed German companies has fallen by 13% since 2004. It cited trivago.com and Mytheresa.com as two examples. Both have seen their prices fall since flotation. Frankfurt issuers have seen a 24% increase. New Financial, a capital markets think-tank, found that 130 European companies, worth $667 billion, chose to either list or relocate their primary listing in the United States during the last decade. According to the think-tank, 70% of these are trading at a discount from their original listing price, with an average decline of 9%. In a speech on Tuesday, Christian Sewing, CEO of Deutsche Bank, commented on the move of European companies to the U.S. Deutsche Boerse warns that cross-border listed firms may face greater lawsuit risks. Some market participants do argue that the possibility of litigation provides shareholders with a path to redress. Exchange executives claim that the tariff-induced turmoil in U.S. markets may also increase the appeal of European exchange markets. Some market participants, such as Eva-Maria Wiecko of Rothschild & Co's Head of Equity Market Solutions for Germany and Austria, are more sceptical. In recent years, the U.S. stock market has experienced inflows. However, European markets have seen a large amount of outflows. Wiecko stated that "the recent rebalancing is a fraction of this number, underlining the continued relative strength" of the U.S. Market. Charlie Conchie reported. ($1 = 0.8950 euros). Emma-Victoria Farr, Tom Sims and Anousha Sakoui contributed to the report; Emelia Sithole Matarise edited it.
Vermont Governor suspends electric vehicle regulations
Vermont Governor Phil Scott suspended the state's requirements for electric vehicles sales in passenger cars, medium- and heavy-duty trucks and on Tuesday amid concerns over the feasibility of California's zero-emission rules.
Vermont is among 11 states, including New York, Maryland, and Massachusetts, that have adopted California’s zero-emission vehicle rule, which aims to eliminate the sale of gasoline only vehicles by 2035. California's rule requires that 35% of the light-duty cars in 2026 be zero-emission vehicles.
Scott cited automakers' warnings that the EV regulations could restrict the supply of gas-powered cars to dealers in the State. Scott said, "It is clear that we do not have enough charging infrastructure or technological advancements in heavy-duty trucks to meet our current goals."
Maryland Governor Wes Moore delayed the enforcement of the rule until 2028, citing concern about tariffs and infrastructure funding.
In May, the U.S. House of Representatives voted to ban both
California's 2035 EV Plan
And its plans will require a rising
Number of zero-emissions trucks
Move to repeal the legal approval of the rules granted by U.S. Environmental Protection Agency, under the former president Joe Biden.
California argued that it was unclear when the Senate would take up these measures.
Biden's decision cannot be reversed
Fast-track rules
Major automakers have argued that the rules, requiring at least 80% EVs in 2035, and no more plug-in hybrids than 20%, are not feasible and have lobbied to stop them. California claims that they are necessary to reduce pollution, and believes the vote was illegal.
The Alliance for Automotive Innovation (which represents General Motors Toyota Volkswagen Hyundai and many other major automakers) warned that car companies may be forced to reduce their overall vehicle sales to increase the proportion of EVs sold.
California rules require EVs to account for 68% of all new vehicles sold by 2030. (Reporting and editing by Chris Reese, Nis Williams, and David Shepardson)
(source: Reuters)