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Oil prices remain stable ahead of Sino-US Trade Meeting
The oil prices were not much changed on Friday morning after a rise of more than 3% the previous day. Trade tensions between the top oil consumers, the United States and China, showed signs that they are easing. Britain also announced a "breakthrough deal" with the United States. Brent crude increased 7 cents or 0.1% to $62,91 a barrel, while U.S. West Texas intermediate crude was up by 7 cents or 0.1% at $59.98 a barrel as of 0121 GMT. Brent crude settled at $1.72, up 2.8% on Thursday. WTI was up 3.2% at $1.84. U.S. Treasury Sec. Scott Bessent and Vice Premier He Lifeng of China will meet in Switzerland on 10 May to resolve trade disputes which have threatened the growth in crude oil consumption. Separately U.S. president Donald Trump and British prime minister Keir starmer announced Britain agreed to lower tariffs for U.S. imported goods to 1.8%, from 5.1%. The U.S. reduced duties on British cars, but kept a 10% duty on other goods. OPEC+, the Organization of the Petroleum Exporting Countries (or OPEC+), plans to increase production in other countries. This could maintain pressure on the oil price. A survey revealed that OPEC's oil production fell in April, as declines in Libyan, Venezuelan and Iraqi production outweighed a planned increase in output. A tightening of U.S. sanctions against Iran could limit supply and drive prices up. Sources told Reuters that sanctions on two Chinese refiners who bought Iranian oil had made it hard for them to get crude, and forced them to use alternative names to sell the product. (Reporting and editing by Christopher Cushing; Sudarshan Varadahan)
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Metals on the edge ahead of China-US Trade Talks
As traders awaited the U.S. - China trade talks at this weekend, metal prices in London were in tight ranges. As of 135 GMT, the benchmark copper price on London Metal Exchange (LME), fell by 0.3% to $9.405 per metric ton. U.S. president Donald Trump and British prime minister Keir starmer announced on Thursday a limited trade agreement. The agreement leaves the 10% tariffs Trump imposed on British exports in place, but expands access to agriculture for both countries. It also lowers U.S. duty on British auto exports. After months of rising tensions, which pushed tariffs well above 100% between the two world's largest economies, traders have adopted a cautious approach ahead of this weekend's U.S. China meeting scheduled in Switzerland. Both countries will likely discuss the possibility of lowering tariffs on specific products and broader tariffs. The discussions between the U.S.A. and China are critical. We are cautious because of Trump's unpredictable stance. Other London metals include aluminium, which fell 0.2%, to $2408 per ton. Zinc rose 0.1%, to $2620; lead increased by 0.5%, to $1954; tin dropped 0.2%, to $31,800, and nickel remained flat, at $15,540. The Shanghai Futures Exchange's (SHFE) most traded copper contract rose by 0.1%, to 77.670 yuan per ton, with the help of rapidly declining stocks, monitored by SHFE, driven by robust demand in China. Yangshan Copper Premium On Thursday, the price of a ton of copper in China reached its highest level since December 2023, at $102 per ton. SHFE aluminium increased 0.6%, to 19,600 Yuan per ton. Zinc was flat, at 22,285 Yuan. Lead was unchanged, at 16,790 Yuan. Nickel was flat, at 123660 Yuan. Tin rose by 0.1%, to 260980 Yan.
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Hellman & Friedman begins sale process of US software company Enverus.
By Milana Vinn Hellman & Friedman, a private equity firm, has begun a process to sell Texas-based software company Enverus. The deal could be worth around $6 billion according to sources familiar with the situation. According to the person who requested anonymity because the discussion is private, the private equity firm and investment bankers of Citi are working together on the possible sale. This has drawn interest from private equity firms as well as other companies. People said that the sale process was in its infancy and there were multiple options on the table. One of them included selling a stake within Enverus. They cautioned, however, that no deal would be guaranteed. Genstar Capital still holds a small stake in Enverus, the technology company that was sold to Hellman & Friedman for $4.25billion in 2021. Citi and Genstar refused to comment. Hellman & Friedman, Enverus and Citi did not reply to requests for comment. Enverus, based in Austin, Texas, provides oil and gas companies with data, analytics and software solutions. Sources said that Enverus generated around $400 million of annual earnings before interest taxes, depreciation and amortization. It is likely to be worth close to 15 times EBITDA or $6 billion. Bloomberg reported that in 2024, private equity owners were exploring the possibility of selling or IPOing Enverus. Investors are increasing the pressure on private equity firms to sell portfolio companies or list them in an IPO to return capital following a year with little activity. Blackstone has been reported to be exploring the sale of Sphera - a software and consultancy services provider that specializes in sustainability. (Reporting from Milana Vinn, New York; additional reporting from Amy-Jo Crowley, London; editing by Dawn Kopecki & Cynthia Osterman).
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China's copper stocks are set to drop again, raising supply concerns
Four traders predict that copper inventories at the Shanghai Futures Exchange SHFE will continue to decline this week. The rapid drawdown is likely to boost prices and encourage traders to send back copper to China. The SHFE copper inventories have declined by 60% in just one month, with the final tally of 89,307 tons being the highest ever. The traders said they expect to see an even greater decline in stocks when the stock reports are released on Friday afternoon. This could increase prices and cause a backwardation of SHFE copper, one of China's most important metals for its vast manufacturing sector. Backwardation is when the cost of securing a commodity to be delivered in a contract for a long term is less than that of a contract for a short-term. This is usually due to a strong current demand or a tight supply. On Thursday, the closing price of the SHFE front month June copper contract was 2,1% higher than that of the October contract. This compares to 0.75% at the end-of-March. There are still buyers who have taken delivery of the copper they ordered when prices plummeted after Trump announced reciprocal tariffs. One trader predicted that the copper stock will drop even further. A second trader stated that while most of the refined copper traded in China is domestically produced, it is expected that more copper from overseas will flow into China, as prices could rise compared to overseas markets. On Wednesday, the Yangshan copper price premium, which reflects the demand for imported copper into China, hit $100 per ton, its highest level since December 2023. The price has increased by 43% since March. Chinese consumers are struggling to find copper on a market that is already very tight. This has been exacerbated by the U.S.-China Trade tensions which have impacted China's top scrap metal source. Instead, traders from all over the world rushed to import copper into the United States before President Donald Trump imposed tariffs on imported goods. This has led to a rise in U.S. COMEX Stocks reached 156,623 tonnes on Wednesday, an increase of 61% from the end March, and their highest level since November 2018. Reporting by Violet Li, Lewis Jackson and Varun H K
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Copec's Q1 profits in Chile fell 8.5% due to a weaker forest unit
Empresas Copec, a Chilean conglomerate of industrial companies, announced Thursday a 8.5% decline in its first-quarter profits. This was partly offset by the stronger performance of the energy sector. The first-quarter profit was $208 million, compared with $228 million for the same period last year. Revenues increased by 1.8% to $7.25 Billion. Analysts polled by LSEG had expected a net loss of $220 millions and revenues of $6 billion. Arauco's core earnings fell by 22.4% due to lower pulp prices, lower volumes and higher wood prices. Copec reported that while the sector had positive pricing trends, and sales improved towards the end of the third quarter, the overall market conditions deteriorated in the month of March due to escalating tensions with trade partners and newly announced tariffs. The energy operating income increased on the back of higher sales at Copec Chile and Terpel’s lubricants division, as well as improved results from Abastible due to its new Gasib Unit in Europe, and stronger performances across Latin America. Copec confirmed that construction on its "Sucuriu Project", a $4.6 billion pulp mill in Brazil, began in April. The plant will produce 3.5 millions metric tons dry cellulose per year, and operations are expected to start in late 2027.
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Monster Beverage reports surprise drop in net quarterly sales due to choppy demand
Monster Beverage announced a surprising fall in revenue for the first quarter on Thursday. This indicates that consumers in America have cut back on spending on expensive energy drinks due to economic uncertainty. Consumer spending was affected by the cold weather in January, and high inflation in March. The company also attributed a decline in net sales due to changes in order patterns by bottlers and distributers in Europe and the U.S., as well as foreign currency headwinds. Monster Beverage hedges its aluminum price increases, but will recognize the tariffs placed on the imports due to the higher U.S. Midwest duty paid aluminum premium. This premium grew by more than 70% over the past three months. One of the company's flavor and concentrates subsidiaries plans to open a facility in Brazil that is expected to become operational next year to help reduce the impact of aluminum levies. Executives said that the tariffs were not expected have a material effect on the company's results. Coca-Cola, the beverage giant, warned last month about macroeconomic uncertainties due to tariffs that could affect consumer sentiment despite exceeding quarterly results expectations. The net sales of Monster energy drinks, which includes the Reign Total Body Fuel and Monster brand, decreased by 0.8%, to $1.72 billion. According to data compiled and analyzed by LSEG, its total net revenue decreased 2.3% during the quarter ending March 31. Analysts had estimated a rise of 4.3% to $1.98billion. The Corona, California based company reported that the sales were also affected by the continued weakness of its alcohol brands segment. Monster increased its prices in the past year. This helped to increase gross profit, as a percent of net sales from 54.1% one year ago. It earned 45 cents a share, instead of the 46 cents estimated. In extended trading, Monster's shares fell 2.2%. (Reporting and editing by Shilpa Majumdar in Bengaluru, Juveria tabassum from Bengaluru)
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Zelenskiy: A 30-day ceasefire will be a "real indicator" of progress towards peace
Volodymyr Zelenskiy, the Ukrainian president, said that in a phone call with Donald Trump on Thursday he had told him a 30-day truce was a real indicator of progress towards peace between Russia and the United States. Kyiv is ready to implement this ceasefire immediately. Zelenskiy talked to Trump during a three-day truce declared by Russian President Vladimir Putin, coinciding the commemorations of World War Two's 80th Anniversary of victory over Nazi Germany. Zelenskiy dismissed the three-day break as meaningless, and both sides accused each other of violating the rule. Zelenskiy stated in his video nightly address that "Ukraine will be ready for a 30-day complete ceasefire starting today, right now." "But there must be real ...?hirty-days which could lead to years of peace." A reliable and long-lasting ceasefire will be an indicator of progress towards peace. The Ukrainian President said that Russia must demonstrate its willingness to end the conflict, beginning with an unconditional ceasefire. In March, the United States proposed a 30-day ceasefire and Ukraine accepted it. Russia said that such a measure could only be implemented once reliable monitoring and enforcement measures are in place. Zelenskiy also said that he spoke with Trump about the agreement ratified by the Ukrainian parliament on Thursday to exploit Ukraine’s mineral wealth, along with the creation an investment fund to help rebuild Ukraine. He and Trump "noted the importance of our relationship strengthening our countries over decades". (Editing by Alistair Bell).
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Citgo reports $82 million loss for Q1 despite weak margins
Citgo Petroleum, a refiner owned by Venezuela, reported a $82 million loss for the first quarter of this year. This compares to a $410 million profit in the same period the previous year. The company based in Houston said that the result was due to the weak margins in refining. Citgo, which is being pursued for its assets by Venezuelan expropriated firms and bondholders who defaulted through an auction organized by a U.S. Court, has registered red numbers once again in its most recent period. This follows a loss of $146 million in the fourth quarter. In a press release, CEO Carlos Jorda said that despite the low prices, the refinery achieved a quarterly crude processing rate record. The average throughput of the seventh-largest U.S. oil refining company in the first quarter of 2008 was 833,000 barrels of crude oil per day (bpd), with 768,000 bpd of crude running, for a crude utilization of 95%. This is lower than the 98% recorded in the previous quarter. The refinery in Lake Charles, Louisiana saw its utilization rise to 99%. However, the refinery in Corpus Christi (Texas) fell to 83%, down from 96% the previous quarter, as planned maintenance was carried out. Profits plummeted by Last year, $305 Million was spent The auction in Delaware is expected to bring in less than the $2 billion profit that was anticipated for 2023. This has caused some investors and creditors to change their expectations about the amount they can expect. After a failed bid round last year the court has launched a second round of bidding by selecting a $3.7 billion Starting bid Last month. After rival bids have been received, and the winner has been selected in the coming months, a final sale hearing will be held for July. Citgo reported that the volume of marketing sales in the first quarter fell slightly, to 423,000 Bpd. Citgo reported $35 million in equipment and turnaround expenses between January and the end of March. The company's liquidity at quarter-end, an important indicator for the auction, fell to $2.1 billion compared to $3.8 billion by the end of the last quarter. Reporting by Marianna Pararaga, Editing by Chris Reese & Marguerita Choy
Secret problems for South African citizens in broad open 2024 election
South Africans will vote in a national election on May 29 with an extraordinary sense of uncertainty about the result, as surveys suggest the African National Congress will lose its bulk after 30 years in power. With coalition federal government looking like a possibility for the first time because completion of apartheid, a dizzying range of 70 parties from Marxists to social democrats to complimentary marketeers are competing for voters' attention in the recentlies of campaigning. The following are the key issues that matter to voters who will choose a new National Assembly that will then select the next president.
JOBS. South Africa has one of the greatest unemployment rates in the. world, trapping countless individuals in hardship and making them. reliant on social grants, and the issue is worse now than it. was at completion of apartheid.
The joblessness rate stood at 32.4% in 2023, almost 10. points higher than in 1994, when the ANC concerned power. Young. people represent majority of the country's unemployed,. with a rate of over 40%.
ECONOMY
The origin of the joblessness crisis is slow development. South Africa's economy has actually barely grown in more than a years,. with economic growth averaging 0.8% since 2012.
Falling tax profits has caused federal government debt to rise, with. debt-servicing costs consuming a higher share of the national. budget than basic education, social security or health. The. debt-to-GDP ratio is projected to reach 74.1% in the present. fiscal year, up from 63.3% 5 years earlier.
POWER CUTS
Understood to South Africans as load-shedding, arranged power. Due to the fact that of a failure to, cuts imposed by state utility Eskom. generate enough electricity to satisfy demand are the bane of. households along with business. Eskom has been struggling to keep its ageing fleet of coal-fired. power plants operational. The energy became inefficient in. part due to a growing of corruption throughout the. administration of former president Jacob Zuma from 2009 to 2018. The government is working to include creating capability, mainly. through handle private companies running solar and wind. projects. While some projects are operational, the green power. push suffered setbacks after some tasks failed to protect. funding.
CORRUPTION
A long series of corruption scandals involving ANC figures. or people linked to them has actually created an understanding among numerous. South Africans that the greed of individuals in office is. adding to bad service delivery for everyone else. A query established in 2018 to take a look at claims of. top-level corruption during Zuma's years in power found the. problem had been systemic in government, a phenomenon that. became known as state capture. Zuma himself rejects any. misbehavior.
Since taking over from Zuma, President Cyril Ramaphosa has. stated dealing with corruption was a priority, but opposition critics. state his administration has actually done insufficient to stop the rot.
CRIMINAL OFFENSE. South Africa has one of the world's greatest rates of violent. crime, making it hazardous to endeavor into particular neighbourhoods. The problem is worse in the largely inhabited townships on the. peripheries of cities where numerous Black working class individuals. live.
The murder rate for 2022/23 was the highest in twenty years at. 45 per 100,000, a 50% boost from a years ago, cops figures. program. That is higher than in Honduras, a country pestered by. extreme gang violence.
High levels of joblessness, inequality and poverty have. developed fertile ground for criminal activity to settle in South Africa,. intensified by the expansion of organised criminal groups and. a flood of unlawful weapons over the last few years.
IMMIGRATION
Considering that the end of apartheid, South Africa has drawn in large. numbers of refugees and immigrants from other African countries,. seeking a safe haven and task opportunities.
The most current census, in 2022, discovered that 2.4 countless. South Africa's population of 62 million were immigrants,. compared to 835,000 in 1996, the year the post-apartheid. constitution was promoted.
Over the years, anti-immigrant belief has increased, and. South Africa has actually experienced a number of violent crises when. immigrants have been beaten up or eliminated by mobs and their. organizations have actually been robbed.
With voters turning against African immigrants, the. government along with the opposition have significantly talked. about tightening immigration laws to decrease the variety of. arrivals, and about punishing undocumented immigration. In April, the federal government approved a policy report on toughening. up the nation's migration laws. It raised the possibility. that South Africa could withdraw from United Nations conventions. on refugees to deter economic migrants who pertain to South Africa. camouflaging as asylum candidates. An expense based on the report is anticipated to be presented in. parliament needs to the ANC remain in power after the election.
(source: Reuters)