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South Africa seeks new US trade deal after tariff hike, says presidency
South Africa's Presidency said Thursday that new U.S. Tariffs highlight the need for a bilateral trade agreement with Washington in order to guarantee long-term trading certainty. On Wednesday, U.S. president Donald Trump announced global reciprocal tariffs for most imports to the United States. Trump imposed an 8% rate on South Africa. The Presidency issued a statement saying that "the tariffs confirm the urgency of negotiating a new bilateral trade agreement with the U.S. as an essential step in order to ensure long-term trading certainty." These latest tariffs will be in addition to 25% on all cars and auto parts imported into the U.S. that will take effect from Thursday. The levies could have a serious impact on South Africa's exports to the United States of parts and vehicles worth over $2 billion. The President's Office added: "While South Africa remains committed towards a mutually-beneficial trade relationship with the United States... unilaterally imposed punitive tariffs serve as a hurdle to trade and shared prosper," (Reporting and editing by Olivia Kumwenda Mtmabo, Sharon Singleton, and Nqobile Dudla)
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South Africa seeks new US trade deal after tariff hike, says presidency
South Africa's Presidency said Thursday that new U.S. Tariffs highlight the need for a bilateral trade agreement with Washington in order to guarantee long-term trading certainty. On Wednesday, U.S. president Donald Trump announced global reciprocal tariffs for most imports to the United States. Trump imposed an 8% rate on South Africa. The Presidency issued a statement saying that "the tariffs confirm the urgency of negotiating a new bilateral trade agreement that is mutually beneficial with the U.S. as an essential step in order to ensure long-term trading certainty." These latest tariffs will be in addition to 25% on all cars and auto parts imported into the U.S. that will take effect from Thursday. The levies could have a serious impact on South Africa's exports to the United States of parts and vehicles worth over $2 billion. The President's Office added: "While South Africa remains committed towards a mutually-beneficial trade relationship with the United States... unilaterally imposed punitive tariffs serve as a hurdle to trade and shared prosper," (Reporting and editing by Olivia Kumwenda Mtmabo, Sharon Singleton and Nqobile Dudla)
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Iron ore prices fall due to US tariffs but steel demand remains resilient.
Iron ore futures dipped slightly on Thursday, after U.S. president Donald Trump announced a wide range of reciprocal tariffs. However, seasonal demand for this steelmaking ingredient helped to cushion the downward trend. The May contract for iron ore on China's Dalian Commodity Exchange ended the daytime trading 0.32% lower, at 788.5 Yuan ($108.05). As of 0707 GMT, the benchmark May iron ore traded on Singapore Exchange was down 0.84% at $101.95 per ton. Broker Galaxy Futures stated in a report that U.S. Tariffs were more aggressive than anticipated and will have a negative impact on the ferrous market. Trump announced a minimum 10% tariff on goods imported into the United States on Wednesday, and much higher duties for products from dozens countries. This is a worsening of a trade conflict that could drive inflation up and slow down U.S. economic growth. The new tariff will total 54% on Chinese imports. Beijing on Thursday called for the United States' latest tariffs to be immediately canceled and promised countermeasures in order to protect its own interests. Steelmakers increased production during the construction peak season of March and April to cushion the price fall. The recovery in steel consumption will encourage steelmakers in China to increase their hot metal production, according to a report by Mysteel. ANZ analysts said that iron ore exports were down 17% on a year-over-year basis during the current Australian cyclone seasons. Coking coal and coke, which are both steelmaking ingredients, were down by 0.2% and 0.64% respectively. The Shanghai Futures Exchange saw a loss in most steel benchmarks. Rebar fell by 0.19%, stainless steel dropped 0.92% and hot-rolled coils were down 0.63%. Wire rod was up almost 0.4%. China's financial market will be closed for the public holiday on Friday. Trading will resume Monday, April 7.
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India's jewellery exports are set to decline sharply due to US tariffs
Industry officials warned that India's gems and jewelry industry, worth $32 billion, is bracing itself for a steep drop in exports due to the high U.S. import tariffs. The United States has imposed a reciprocal 26% tariff on India. This is a blow for the hopes that South Asia had of being relieved under President Donald Trump’s global trade policy. Colin Shah, managing Director of Kama Jewelry - one of India's largest diamond jewellery manufacturers - said that the tariff was higher than expected. "It's quite severe and will impact exports." India is the largest hub in the world for diamond polishing and cutting, with nine out of 10 diamonds processed worldwide. India exports gems and jewelry worth $32 billion annually to the United States, which accounts for almost $10 billion. India exports more gems and jewelry to the United States than it does engineering or electronic goods. The industry is responsible for millions of jobs in South Asia. Exports fell 14.5% in 2023-24 (April-March) due to a weakening demand in China. Shah suggested that a long-term bilateral deal with the United States might help to soften the blow. India and the United States have begun talks to reach a trade agreement as soon as possible. We're pretty optimistic that India will be able to land a deal with the U.S. within the next few weeks. We just have to keep pushing through the tough phase for another few months," said Shaunak Parikh. Vice chairman of GJEPC. (Reporting and editing by Rajendra J. Jadhav)
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Stocks fall as fear of recession is sparked by trade war
Investors rushed to gold, bonds and the yen as stocks plunged Thursday, frightened that new U.S. trade tariffs would intensify a global trade war and tip the world towards recession. After President Donald Trump's tariffs, which raised import taxes to their highest level in a century, the dollar fell to its lowest point in six months. Olu Sonola is the head of U.S. Economic Research at Fitch Ratings. Many countries are likely to end up in recession. If this tariff rate remains in place for a long time, you can forget about most forecasts. Nasdaq Futures fell 3.2%; European Futures were down almost 2%, and the Nikkei dropped 3% in Tokyo, reaching eight-month-lows. Apple's market cap fell by over $240 billion after its shares dropped 7% during the evening trade. Nvidia's total market value dropped by 5.6%, or $153 billion. The benchmark 10-year U.S. Treasury Yields dropped more than 15 basis point to a 5-month low of 4.04 % and markets have priced in a greater chance of rate cuts, even though tariffs will likely cause U.S. Inflation to spike sharply. Tai Hui is Asia-Pacific Chief Market Strategist at J.P. Morgan Asset Management. She said: "There will be a supply-side impact via tariffs to the U.S. Economy, and on prices." "And (there is) the uncertainty that businesses and consumers face, which both could be problematic for economic growth," said Tai Hui, Asia-Pacific chief market strategist at J.P. Morgan Asset Management. Trump announced an import tariff of 10%, with much higher rates for some trading partners in Asia. China received a 34% tax, Japan 24%, Vietnam 46 %, and South Korea 25 %. The European Union received a 20% tax. Fitch Ratings reports that the effective U.S. Import Tax Rate has risen to 22% from 2.5% under Trump, and reached levels last seen in 1910. Vietnamese stocks fell 6%. CHINA FOCUS Investors bought up safe havens in anticipation of the countermeasures that China and Europe had promised. They also sold exposure to global growth. Brent futures, which are a good indicator of economic activity, fell more than 2%, to $73,28 per barrel. Australian shares and Australian dollars fell. As foreign exchange traders sought safety outside of the U.S. Dollar, gold reached a new record high at $3160 per ounce. The Japanese yen also jumped more than 1 percent to 147.29 dollars. The euro increased by 0.6% to $1.0912. China has, for the time being, kept its currency stable, keeping the yuan at 0.4%, despite the eye-watering tariffs on Chinese exports. The hit to Vietnam was seen as closing down a popular route to work around the tariffs. The Chinese economy is large and there's a hope that Beijing will support Hong Kong and Shanghai stocks. Losses in Hong Kong were limited to 1.5%, and Shanghai losses to 0.5%. George Saravelos, strategist at Deutsche Bank, said that China should be the main focus of attention in the coming days. He asked: "Will China wait for trade talks... or will it absorb this shock?," "Or will China try to 'export the shock'... via devaluation of yuan?"
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Morning bid Europe-It seems investors don't really like tariffs
Wayne Cole gives us a look at what the future holds for European and global markets. Investors are not happy with a trade war fueled by tariffs and a likely recession. Who knew? Wall St Futures and the Nikkei are both down about 3%. European stock futures have fallen around 1.7%. The Treasury yields have hit multi-month-lows while the dollar index has hit a six-month-low in chaotic conditions. The reaction matched the drama surrounding the announcement as President Donald Trump announced various taxes on live television from a large blue and yellow board. The list included 34% more for China, 20% for the EU, 32% Taiwan, 24% Japan, and 46% Vietnam. Included high levies on Asia were a clear shock for tech stocks, as it will increase costs across their supply chain. Apple shares fell 7% following the bell. Contrary to the arguments of the White House most analysts see the end of the free trade agreement as a shock for U.S. economic growth, and the likelihood of recession will increase. Fed funds futures rose in price to reflect 80 basis points in Fed easing in this year. This is true even though tariffs are sure to cause a sharp spike in U.S. inflation. Analysts have predicted price increases of up to $10,000 for new cars alone. Fed officials often say that they are willing to overlook a single increase in price, but this pandemic illustrates what happens when companies realize they can raise prices and then blame someone else. The White House has said it is open to horse-trading with other countries. The shifting sands will make it difficult for companies to plan investments over the long term. Then there are the countermeasures that will be taken as countries prepare to oppose Trump's world order. Ursula von der Leyen, President of the European Commission, was on the phone just moments ago to promise retaliation if negotiations failed. Students of history know that the Smoot Hawley Tariffs, implemented by the United States in the early 1930s, are what put the "great " in "the Great Depression". Are you trying to stay up-to-date with the latest news on tariffs? Our daily news digest provides a quick overview of the most important headlines that impact global trade. Tariff Watch is available here. The following are key developments that may influence the markets on Thursday. - EU Producer Prices, Service PMIs US trade data ISM services and weekly jobless claims. Fed Vice Chair Jefferson, and Governor Cook talk
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London copper prices drop as Trump tariffs cause demand concerns
The price of copper in London fell on Thursday as the U.S. President Donald Trump's sweeping tariffs sparked concern about global metal demand. As of 0331 GMT, the benchmark three-month contract on the London Metal Exchange was down by 1.4% to $9,562 per kilogram. The contract had hit $9,507 earlier in the day. This was its lowest level since March 11. Trump announced on Wednesday that a 10% minimum tariff would be applied to most imported goods into the United States. Tariffs on products from more than a dozen countries are significantly higher, triggering a trade war around the world that could increase inflation in the U.S. as well as globally and impede economic growth. China demanded that the United States immediately rescind their most recent tariffs. It also promised retaliatory measures to protect its own interests in response to Trump’s tariffs against all U.S. global trading partners. The reciprocal tariffs sent shockwaves throughout today's stock and futures markets. The people are on edge as they anticipate what retaliatory duties other countries may levy. The specter of a escalating war on trade is the dominant force in the market," said a metals trader. Other metals include LME aluminium, which fell 1.2%, to $2460 per ton. Lead also dropped 0.7%, to $1955, while zinc fell 1.2%, to $2746, tin declined 3.0%, to $36,800, and nickel decreased 0.9%, to $15,825 per ton. Lead fell by 1.1%, to 17,155 Yuan. Nickel fell by 1.5%, to 127.380 Yuan. Tin fell 1.7%, to 288,640 Yuan.
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NYK, Partners to Develop Renewable Energy-Powered Floating Data Center
NYK Line, NTT FACIITIES, Eurus Energy Holdings Corporation, MUFG Bank, and the city of Yokohama have signed a memorandum of understanding (MoU) for a demonstration project of an offshore green data center, utilizing a mini-float installed as a disaster countermeasure.On a mini-float, spanning 25 meters in length and 80 meters in width, installed off Osanbashi Pier in Yokohama City, the partners will test an offshore floating data center fully powered by renewable energy generated by solar power and battery energy storage systems.Based on the results, the partners will explore further developments in the waterfront and sea areas of Yokohama port.The demonstration project will involve installing a container-type data center, solar power generation equipment, and battery energy storage systems on a mini-float.The project aims to operate the data center entirely on renewable energy while assessing the equipment's salt damage resistance and operational stability in an offshore environment. The demonstration is planned to start in autumn 2025.“We expect the offshore floating green data center, which operates on 100% renewable energy, will become one of the new standards for future data centers and greatly contribute to the realization of a carbon-neutral society by operatiImage of Demonstration Project (Credit: NYK Line)ng entirely on renewable energy and emitting no greenhouse gases during operation. Through the demonstration, we will work to address various challenges to achieve this vision,” the partners said.Once realized, offshore floating green data centers will enable efficient utilization of offshore wind power, a promising renewable energy source.The project envisions situating these data centers near offshore wind farms to maximize the use of generated electricity without relying on or being limited by onshore power grids.Additionally, the approach is expected to address various challenges associated with onshore data center construction, such as land availability, shortages of construction contractors, and extended construction lead times.By utilizing renewable energy, leveraging Japan's vast maritime domain, and enhancing port functions necessary for constructing and maintaining offshore facilities, the project aims to contribute to both environmental preservation and the growth of digital infrastructure.
Fight for Anglo's copper assets tests BHP's willpower as deadline looms
BHP's. deal with to add more copper to its portfolio will be evaluated by. Anglo American investors' demands for a simpler deal. for the whole business or a money sweetener to clinch a deal that. could become the greatest in mining history.
Anglo on Wednesday provided BHP, the world's greatest noted. miner, extra time to present a binding deal, after. turning down three takeover proposals which it stated undervalued the. business and would be tough to execute.
The one-week window offers BHP another shot at beating. Anglo CEO Duncan Wanblad's restructuring plan by convincing. those concerned about the worth and structure of the offer,. investors and analysts informed .
The Australian miner is fighting to protect Anglo's world. class and longer-life copper possessions in Latin America. Still, the. complex structure of its offer, pushback from the Anglo board. and financiers' demands for a bigger payment, will test how far. it's willing to go to get the properties, they state.
BHP's deal at first provided Anglo financiers the prospect of. an early payment compared to their own company's break-up strategy,. however financiers are beginning to poke holes in BHP's asset. portfolio and how much it requires to develop its copper company.
( BHP) wishes to rearrange its portfolio earlier instead of. later on or it will get priced out of future deals as its paper. will be too badly ranked, said Ian Woodley, a portfolio manager. at Old Mutual which holds shares in both business.
BHP most likely believed it had discovered a way to get Anglo's. copper at a fair rate by getting Anglo to jettison its toxin. tablets rather than having to tidy up the structure itself, however. that hasn't really worked up until now.
Anglo rebuffed BHP's offers three times within a month,. consisting of the last modified offer, which valued it at 29.34. pounds per share or 38.6 billion pounds ($ 49.05 billion). Anglo. has itself laid out a plan to divest its less rewarding coal,. nickel, diamond and platinum systems to focus on expanding copper. output to more than 1 million heaps in a years.
At stake are Anglo's huge Colluhuasi, Quellaveco and Los. Bronces mines in Chile and Peru, whose abundant copper deposits make. them longer life properties. The 3 mines are anticipated to produce. about 532,000 tons of copper this year.
Experts at Macquarie projection BHP's copper output peaking. at about 1.9 million lots in 2026, then gradually declining to. about 1.6 million heaps in 2028 with costs increasing. This will. mostly be driven by a forecast depression in output at its giant. Escondida mine from a peak of about 1.3 million tons in 2025 to. about 900,000 lots in 2028.
Copper is key from power to building, and is widely. expected to benefit from the green energy shift by means of. additional need from the electric vehicle sector. New. applications including data centres for expert system. are creating buoyant demand for the metal.
Traders informed that while copper focuses at. the world's largest copper mine Escondida in Chile include 24%. to 28% metal material, a basic level for the industry, current. tonnages did show this material is heading towards the low end of. the range.
Setbacks at Escondida, which has been operating because the. 1990s, underline industry-wide difficulties of falling grades and. a lack of brand-new deposits among manufacturers in Latin America.
CASH SWEETENER
While Anglo accepted engage, it reiterated that BHP's. condition that it instantly unbundle Anglo Platinum. and Kumba Iron Ore makes the offer difficult to perform,. produces unpredictability on the 2 South African systems and threats. value for its financiers.
Anglo's own plan to maintain Kumba in the trimmed. business might be an example of how BHP fine-tunes the structure of. its deal, stated a fund manager at Sanlam Investment Management,. which owns shares in both companies.
The structure is the key point of contention. If they (BHP). are willing to jeopardize for example with a cash deal or. including Kumba to the mix, then it might be good enough to get the. Anglo board over the line, he stated.
BHP stated on Wednesday the ratio of shares it is offering. Anglo investors is last, unless there is an offer from a. third party or if the board of Anglo is minded to recommend an. offer on better terms.
The miner does not plan to alter the structure of its offer. and isn't going to add cash to the deal either, a source told. .
A major Anglo financier informed that BHP's third offer. is still below the investor's minimum fair cost expectation of. 31.93 pounds per share. The investor stated the greatest BHP. could offer is 37.44 pounds, to reflect Anglo's amount.
And while Anglo stated it's engaging BHP, those talks only. involve lawyers and lenders from both business, a separate. source said.
South Africa's Public Financial investment Corporation, the. second-largest Anglo financier, said on Wednesday before BHP's. third offer, that the initial proposition required significant. modification.
A much better choice would have been for BHP to buy the whole. Anglo and spin off possessions later, Old Mutual's Woodley stated.
I am unsure offering cash would make excessive distinction. Would it be cash now or cash once the un-bundling has occurred?. Woodley said.
Has any deal in any industry dealt with the basis that a. takeover is agreed on with conditions that are long dated however. ratios and or rates are repaired now?
(source: Reuters)