Latest News
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Russia claims that Ukrainian drones have attacked a training centre at the Zaporizhzhia Nuclear Plant
The Russian-installed management of the Russia-held nuclear power plant in Ukraine confirmed on Monday that Ukrainian drones had attacked a training center at the Zaporizhzhia Nuclear Power Plant Sunday evening. The administration posted on Telegram that "the enemy used three unmanned aircraft vehicles." The administration added that there were "no serious" damages. Could not independently verify the Russian claim. The report was released a day after IAEA (the United Nations nuclear watchdog) reported that hundreds of rounds were fired at the plant late Saturday night. In the first few weeks of Russia's 2022 February, Russian forces captured the Zaporizhzhia Plant. Invasion of Ukraine . Both sides accuse the other side of triggering a nuclear disaster by firing weapons or other actions. Although the station is Europe's largest nuclear power plant and not in operation, it still needs power to keep nuclear fuel cool. In a statement, the plant's management based in Russia said that "all necessary safety measures are in place and the station continues to operate normally." Reporting by Lidia Kelley in Warsaw, editing by Kim Coghill
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MORNING BID EUROPE - The art of using tariffs to grab headlines
Wayne Cole gives us a look at what the future holds for European and global markets. The tariffs seem to be a convenient way for Trump to dominate the news cycle. He is not interested in months of complex, tortuous trade negotiations aimed at a mutually beneficial outcome. Why would you do that, when you could tweet a 30% threat of tariffs on a Saturday morning to dominate the news for a whole weekend? Assuming that this is a negotiation tactic primarily, the markets in Asia have only eased modestly. S&P futures are down about 0.4%, while most regional indexes are only marginally lower. The euro has lost a small amount, but European futures are down by 0.7%. It's difficult to imagine how Brussels will ever be able to satisfy Trump's requests, partly because it isn't clear what Trump wants. The EU tariffs against U.S. products are so small that there is not much to be cut. However, granting exemptions to domestic taxes and regulation is politically risky. The market's stoic response could also be a clever ruse. Investors believe Trump will be willing to ease up on tariffs if the need arises. Trump may think that the markets are on his side now, with U.S. stock prices at record highs, and bond yields down from their peak. It seems that, at any rate the U.S. effective tariff rate will be similar to the Smoot-Hawley levy that so greatly contributed to the Great Depression. We'll see if Trump was right and that the majority of professional economics were wrong. The U.S. deficit in trade is not yet solved. China reported today that its trade surplus with the U.S. increased by 48% to nearly $27 billion in June, and its exports exceeded forecasts. Trump found time to continue his feud against Fed Chair Jerome Powell. He said it would be a "great thing" for Powell to step down, eight years after Trump nominated Powell. Kevin Hassett, White House economist adviser, warned Trump over the weekend that renovation costs overruns at Washington's Fed headquarters could be grounds for firing Powell. Analysts believe that a Trump nominee for Fed chief will do what he wants by aggressively reducing interest rates, but whether the other FOMC members would agree with this assumption is still in question. Investors will likely demand compensation to compensate for the increased risk of inflation. This is what happened in Turkey. Market developments on Monday that may have a significant impact Piero Cipollone, ECB Board member, appears before the Committee on Economic and Monetary Affairs of European Parliament
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Oil edges up, investors eye Trump statement on Russia
Oil prices increased on Monday adding to the gains of over 2% made on Friday as investors hoped for further U.S. Sanctions on Russia, which could affect global supply. However, a surge in Saudi production and tariff uncertainty limited gains. Brent crude futures gained 15 cents, to $70.51 per barrel at 0400 GMT. This was a continuation of the 2.51% increase on Friday. U.S. West Texas Intermediate Crude Futures rose to $68.59 up 14 cents after closing 2.82% higher the previous session. Donald Trump, the U.S. president, said Sunday that he would send Patriot missiles for air defence to Ukraine. He will make a major statement on Russia on Monday. Trump expressed his frustration at Russian President Vladimir Putin over the lack of progress made in ending the conflict in Ukraine, and Russia's increasing bombardment of Ukrainian city. Last week, in an effort to pressurize Moscow into good faith peace negotiations with Ukraine a bipartisan U.S. Bill that would target Russia with sanctions gained momentum in Congress. However, it still needs Trump's support. Four EU sources reported that after a meeting on Sunday, the European Union's envoys were on the verge to agree on an 18th package against Russia. This would include a lower cap on Russian crude oil. Brent gained 3% last week while WTI saw a weekly gain around 2.2%. This was after the International Energy Agency stated that the global oil markets may be tighter then they appear, and demand is being supported by the peak summer refinery run to meet travel needs and power generation. Analysts at ANZ said that the price increases were limited due to data showing Saudi Arabia increased its oil production above the quota set by the Organization of Petroleum Exporting Countries (OPEC) and their allies supply agreement. Saudi Arabia surpassed its June oil production target by 430,000 barrels a day, reaching 9.8 million bpd. This compares to the implied OPEC+ goal of 9.37 millions bpd. Saudi Arabia's Energy Ministry said Friday that the country had met its voluntary OPEC+ production target. It added that Saudi Arabia-marketed crude supplies in June were 9.352 millions bpd in accordance with the agreed quota. According to data released by the customs on Monday, China's oil imports in June increased 7.4% from a year ago to 49.89 millions tons, which is equivalent to 12,14 million barrels a day. This was the highest rate per day since August 2023. J.P. Morgan Research team in a client letter said that China will likely continue to stockpile, but since storage is at 95% the peak inventory build in 2020, these stocks are likely to appear in "visible" Western markets, which are critical for price formation and exerting downward pressure. Investors also watch the outcome of U.S. trade talks with key trading partner that could affect global economic growth.
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Iron ore futures are up on the back of strong China trade data. Production curbs gains
Iron ore futures prices rose on Monday, boosted by a resilient Chinese demand for steel, but production restrictions in major steelmaking regions dampened investor sentiment. As of 0311 GMT, the most-traded contract for September iron ore on China's Dalian Commodity Exchange was trading 0.2% higher. It was 766 yuan (US$106.83) per metric ton. The benchmark iron ore for August on the Singapore Exchange rose 0.27% to $99.55 per ton. Everbright Futures, a broker, says that macro-news has boosted iron ore prices and fueled demand. Iron ore imports by China, the top consumer, rose 8% in July as some miner increased shipments in order to meet quarterly targets. This followed a slump in the first quarter caused by cyclones that hit Australia, the leading supplier. Stronger-than-expected steel demand boosted appetite for iron ore. Exports from China grew in June, while imports recovered. This was due to exporters speeding up shipments ahead of the August deadline. Anthony Albanese, Australia's prime minister, reaffirmed on Monday his commitment to work with China in order to address global excess capacity of steel and promote a market-driven and sustainable sector. Galaxy Futures said that the steel industry continues to grow, boosted by investor optimism amid supply-side reforms. Meanwhile, robust demand in manufacturing has supported prices. Everbright noted, however, that environmental protection-related restrictions on production in the major steel production hub Hebei Province caused a decrease in blast furnace molten-iron output by 10,400 tonnes month-on-month. Coke and coking coal, which are both used to make steel, also traded in a sideways manner. The Shanghai Futures Exchange steel benchmarks mostly fell. Rebar fell by 0.1%, while hot-rolled coils dropped 0.12%. Stainless steels fell 0.35% and wire rods rose 1.13%. ($1 = 7,1701 Chinese yuan). (Reporting and editing by Harikrishnan Nair; Reporting by Lucas Liew)
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China's rare Earth exports jump in June as a sign of relief from trade war
Customs data released on Monday showed that China's rare-earth exports increased 32% from the previous month. This could be a sign that the agreements made last month to open up the metals flow are paying off. In June, the U.S. reached agreements with China to reopen rare earths after Beijing imposed export controls in April at the height of the trade war between Washington and Beijing. This led to the closure of some auto factories in the world. China's Foreign Minister said recently that Europe's normal demand for rare earths could be met. Several carmakers reported late last month that the elements had started to flow freely again, but not yet. Data from the General Administration of Customs revealed that in June, the world's biggest producer of rare Earths, a group of minerals used to make products for automobiles, consumer electronics, and defence, had exported 7,742.2 tons, compared with 5,864.6 tons in May. Exports are 60% more than in June 2024. Customs data shows that China exported 32.569.2 tonnes of rare earths cumulatively in the first half of the year compared to 29,095.2 tons during the same period of last year. The data, while positive, is only indicative. The data released on Monday does not differentiate between rare earths, related products and other types of products that are not included in the control. On July 20, a more detailed breakdown will be published.
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Twelve Hong Kong activists have appealed convictions in the landmark '47 Democrasts' case
Twelve Hong Kong prodemocracy advocates appealed Monday their subversion convictions, and prison terms in a case involving national security that highlighted Beijing's continued crackdown on dissent. The appeal is based on the "47 Democrats" case. This was the name given to the activists arrested in early 2021 and accused of 'conspiracy'. After massive protests in support of democracy, the court found 45 defendants guilty for organising and conducting an unofficial primaries election on July 20, 2020. The prosecution considered this action as a "plot", to undermine the Hong Kong Government. The West Kowloon Law Courts building was under tight security as police officers with dogs and other police personnel patrolled the area. They also searched some passersby. A man named Wong, an elderly man who was in line with around 100 other people to obtain a public ticket to the hearing said: "I want them all to see." "They're criminals." This latest chapter of the legal drama that began in early 2021 with dawn raids by police on the homes and offices of prominent democrats was attended by foreign diplomats from more than a half dozen countries. Some countries, such as the United States, have condemned the case and called for its immediate release. The democrats were sentenced to prison sentences of up to 10 years in November last year. Hong Kong and Chinese officials, however, have defended their independence and said that no one was above the law, and that the democrats had received a fair hearing. Eleven of the 16 Democrats who had pleaded not-guilty during the trial have now decided to appeal. This includes Gordon Ng and Owen Chow who were each sentenced to over seven years in prison. Prince Wong is another democrat who has pleaded guilty and appealed her sentence. Michael Pang, a defendant, retracted his application on Monday. The appeals should take about 10 days. They will include an appeal by the government against the acquittals of a number of democrats including barrister Lawrence Lau. Years of crackdowns under China's national security law have resulted in arrests and the closing down of civil society organizations, media outlets that are liberal, and other media outlets. The Democratic Party and League of Social Democrats were the last remaining pro-democracy groups to disband this year, citing increasing pressures. This case is among the most notable so far in a 2020 law on national security that China imposed in response to massive pro-democracy demonstrations in 2019. (Charis Yu contributed to the reporting; Saad Sayeed edited it)
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Australia PM promotes green steel when iron ore miner meets Chinese steelmakers
Australia and China need to work together more closely on green steel, said Anthony Albanese, the Prime Minister of Australia, in Shanghai, on Monday. He also called for China, the world's biggest steelmaker, to reduce its excess production capacity. China depends on Australia for two-thirds or its iron ore consumption by its massive steel industry. This trade will bring Canberra A$105 Billion ($68.90 Billion) in this financial year according to the most recent government estimates. Decarbonisation, which requires higher-grade iron ore from countries such as Guinea and Brazil, puts this trade at risk for Australia. Green steel is metal that's produced with renewable energy, such as hydrogen, to reduce or eliminate coal and carbon emissions. Albanese, speaking before a meeting of Australian iron ore miner and Chinese steelmakers explained that green steel was a way for Australia and China to continue their decades-long relationship. He said that "achieving the goal of Paris Agreement would require decarbonisation steel value chains. This presents an opportunity for Australia, and China, to advance our long-term interests." Albanese offered to work with China in order to reduce the overcapacity of its steel industry. This is fueling record exports, which in turn triggers a wave tariffs and duties by trade partners such as Vietnam and South Korea. A think tank warned that Australia could lose up to half of its revenues from the steel industry if it does not start producing green iron. This is a product with lower emissions, and other countries are now making steel using renewable energies. The report suggests that if you build a successful green iron industry, your revenues could be doubled. The iron ore from Australia is not of a high enough quality to be processed directly into green steel. It requires an additional processing stage. This step can be done with green energy, such as biomass or hydrogen instead of coal. Rio Tinto and BHP Group, as well as Fortescue, were among the top iron ore mining companies that attended. All have Fortescue to produce green iron Green iron produced by a pilot plant This year is the first time that we will be able to see this. Andrew Forrest, Fortescue's founder, was in China to meet with Albanese. He said that the relationship between Chinese steelmakers, and Australian mines, strengthened the bonds between the two countries, and that security concerns were "a distraction." Forrest was answering a question regarding whether or not a security debate that emphasizes China's risks is detrimental to the economic relationship between the two countries, given the fact that China frames itself as a partner who is more stable than the United States. Both Australia and New Zealand said that they were not adequately warned of China's Navy's live-fire drills in the Tasman Sea, between Australia and New Zealand, earlier this year. Forrest stated that "Australia's relationship with China is multi-layered, as it should be, and in order to build a strong bilateral relationship, you need these strong friendships, this very real business confidence between the two countries." $1 = 1.5239 Australian Dollars (Reporting and writing by Alasdair pal in Sydney, Melanie Burton in Melbourne, Lewis Jackson in Beijing, Kate Mayberry).
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China's June iron ore imports rise on increasing shipments
China's imports of iron ore in June increased by 8% compared to May, as some miner's increased shipments to reach quarterly targets after a slump in shipment in the first quarter because of cyclones that hit Australia. Data from the General Administration of Customs revealed that the world's biggest iron ore consumer imported 105.95 millions metric tons of this key ingredient for steelmaking last month. This is the highest monthly total so far in the year. This is up from 98.13 millions tons in May 2024 and also an increase of 8.5% compared to the 97.61million tons in June 2024. Stronger-than-expected steel demand in the off-peak season due in part to robust steel exports also fuelled buying appetite for the key steelmaking ingredient, analysts said. "Handy profits incentivized steelmakers to initiate a flurry of iron ore stockspiling, especially when the hot metal production remained at a relatively low level, contributing to increased imports last month," Cao Ying said, a Beijing analyst at broker SDIC Futures. Portside inventories are up due to higher imports Steelhome's data showed that the number of tons produced by steel companies will increase 0.5% per month to 133.6 millions tonnes by late June. China's imports of iron ore fell by 3% on an annual basis to 592.21 millions tons in the first half. (Reporting and editing by Amy Lv, Lewis Jackson)
Deals of the day-Mergers and acquisitions
The following quotes, mergers, acquisitions and disposals were reported by 0930 GMT on Thursday:
** ANZ Group, Australia's fourth-largest bank, has fully left its financial investment in Malaysian lender AMMB Holdings by selling its entire 5.2% stake for approximately $ 149 million, according to a term sheet seen .
** United States Steel Corp and Nippon Steel said they had received all regulatory approvals beyond the United States associated to their proposed $14.9. billion merger.
** Canada's Brookfield stated that together with. Brookfield Renewable Partners and Singapore's Temasek Holdings. it has entered into special speak with purchase a bulk stake in. French renewable power manufacturer Neoen, valuing it at. around 6.1 billion euros ($ 6.6 billion).
** Telefonica Brasil said on Wednesday it remained in. talks with Brazilian broadband infrastructure operator Desktop. over a prospective acquisition.
** Banco BPM CEO Giuseppe Castagna thinks there. are no conditions today to combine with state-controlled bank. Monte dei Paschi, he stated in an interview published. with daily Il Sole 24 Ore.
** Waste management company Renewi prepares to sell its UK. Community business to Biffa Ltd as it fully shifts focus to. European recycling markets in line with in 2015's tactical. review, the London-listed company said.
** BHP Group investors invited the leading international. miner's choice to ignore a $49 billion strategy to take. over Anglo American, which turned down 3 proposed. deals from its larger competitor over the previous 6 weeks.
** U.S. commodities trader Bunge and a subsidiary of. Japan's Zen-Noh Group have consented to buy part of a terminal at. Latin America's biggest port from Rumo for 600 million reais. ($ 115.3 million), according to a securities filing on Wednesday.
** Brazilian rail operator Rumo has actually signed a. binding agreement to sell its 50% stake in a terminal at the. Santos port to a consortium formed by Bunge Alimentos and. Zen-Noh Grain Corp for 600 million reais ($ 115.3 million), it. stated on Wednesday.
(source: Reuters)