Latest News
-
London copper prices fall on fears of US tariff
London copper prices fell on Tuesday due to concerns about possible U.S. duties on the metal, but a weaker dollar helped cushion the fall. The London Metal Exchange's three-month copper contract fell 0.7%, to $9.554 per ton at 0708 GMT. Shanghai Futures Exchange's most traded copper contract fell by 0.1% to $10,796.72 per metric ton. The U.S. president Donald Trump announced on Friday that he would double the tariffs on steel and aluminum imports, increasing them to 50% on Wednesday. This renewed concerns about potential tariffs for copper. ANZ Research reported that "U.S. Trade officials are reviewing the impact on local industry of U.S. Copper imports, and a report is due in the coming weeks." The dollar index (which measures the U.S. currencies against six major counterparts) hovered around the six-week low that was hit earlier in this session. The greenback is softer, making assets dominated by the greenback more affordable for holders of other currencies. Caixin/S&P Global Manufacturing PMI for China dropped to 48.3 from 50.4 in May, the lowest reading since 32 months. China's official PMI remained in contraction territory for May. The LME registered warehouses reported a drop in copper stocks on Monday The 45% drop since mid-February has brought the total to 148.450 tons. This is the lowest level in over a year. Other London metals fell by 0.9%, to $2.443.5 per ton. Zinc dropped 1% to $2.670, while lead declined 0.8% to $1.965.5, and nickel lost 0.7% to $15.425. Tin dropped 0.2% to $30,005. SHFE aluminium dropped 1.1% to 19,860 Chinese yuan per ton. Lead fell 0.3% to 16570 yuan. Zinc fell 0.5% at 22,180 yuan. Tin eased by 1.2% to 248,800 yuan. Nickel rose 0.1% to 121,250 yuan. $1 = 7.1991 Chinese Yuan (Reporting and editing by Sumana Niandy)
-
KKR pulls out of Thames Water Rescue Deal
Thames Water announced that U.S. Private Equity firm KKR pulled out of a multi-billion pound plan to save the company. This has reignited fears about Britain's largest supplier needing to be nationalised in order to avoid a financial collapse. The company's 18 billion pound ($24.35billion) debt load has pushed it to the edge. It was counting on KKR to invest about 4 billion pounds of new equity in order to stabilize its finances. The government said that it was prepared to temporarily nationalise Thames Water if the company failed to recapitalise. The utility has become the focus of public anger against the water industry, which is being blamed for polluting Britain’s rivers and oceans while increasing bills, paying dividends, and failing to invest infrastructure. Separately on Tuesday, a government-commissioned review said water regulation in England and Wales needed to be overhauled after multiple financial and environmental failures. Thames Water bosses stated in mid-May the company will need to be relieved from fines imposed by regulators. The company estimated that these fines could amount to 900 million pounds per year between 2025 and 2030. This would help attract equity, and prevent nationalisation. Last week, Thames was fined over 123 million pounds due to sewage failures. SENIOR CREDITOR PLAN KKR didn't immediately reply to a question about why it pulled out, after Thames Water stated in its statement that "KKR indicated that it would not be able to proceed". Thames Water Chairman Adrian Montague stated that the company will proceed with discussions with senior creditor who have their own alternative plan. This is likely to include a debt-for-equity swap. In February, a group of these creditors gave an additional loan to Thames Water that will only support its finances until May 2026. Montague called it "disappointing", that the preferred partner of the company had pulled out after two months of due diligence. Thames Water announced in March that it aimed to secure new funding before the end of June after an equity raising process involving six bidders. In an effort to put an end to the scandal, the Labour government tasked former deputy governor of Bank of England Jon Cunliffe with reviewing the industry. At that time, the Labour government ruled out the renationalisation of the privatised water sector in England and Wales. In his interim report, released on Tuesday, he said that stronger and better coordinated regulation is needed, as well as a reduction in the risk around companies to attract investors who are willing to accept lower long-term returns.
-
RBA minutes and Australian main index lead to rate-cut bets
Banks helped to boost Australian shares on Tuesday as investors' expectations of further rate reductions were boosted after minutes of the May central bank meeting revealed that it considered a large cut. S&P/ASX 200 rose 0.6% at the close of trading to 8,466.70. The benchmark index is still a few points short of the 8,500-point psychologically significant level last seen in mid February. The minutes of the Reserve Bank of Australia (RBA), May meeting revealed that policymakers considered a 50-basis-point cut as "insurance" against trade risks. The RBA Watch tool says that this marks a change in tone for the central bank, after the rate cut in May. This has increased the likelihood of an easing during the RBA's meeting next week on July 8, from 59% the previous week. The country's first quarter gross domestic product, which is due to be published on Wednesday, should show a modest increase of 0.4%. Recent data shows that both net exports as well as government spending slowed down the economy last quarter. The RBA believes that the tariffs, and wider trade dispute will reduce inflation rather than increase it. The RBA's language has changed from April's equivocal statement that "the implications for inflation will be more complex". Westpac analysts said this in a recent note. The benchmark rose by 1.2% on Tuesday as banks led the gains, mirroring the gains of the 'Big Four lenders', who rose between 1.2% and 1.4%. The mining sub-index saw gold stocks as the leading advancers, backed by strong prices. Prices retreated Tuesday, but still remained near a four-week high. IDP Education, a provider of placement services for students, saw its shares plummet 48.1%. It was the worst performing stock on the ASX 200 due to tighter visa rules that affected the company's key markets and lowered the projected annual profit. The benchmark S&P/NZX50 index in New Zealand fell 0.7%, finishing the session at 12,327.23 point. (Reporting by Shivangi Lahiri in Bengaluru)
-
China's data weakens and iron ore falls to a 2-month low in response to Trump's tariff increase plan
Tuesday, iron ore futures dropped to their lowest level in almost two months due to fears about demand sparked by President Donald Trump’s plan to double the tariffs on imports of steel and weak factory data from China, the top consumer. The September contract for iron ore on China's Dalian Commodity Exchange ended the daytime trading 1.14% lower, at 695.5 Yuan ($96.69). Early in the session, the contract reached its lowest level since April 10, at 690.5 Yuan per ton. As of 0700 GMT the benchmark July iron ore traded on the Singapore Exchange was down 1.13% at $94.15 per ton, after hitting its lowest level since April 10, when it hit $93.8. Trump announced his intention to impose 50% tariffs on steel and aluminum imports. This will increase pressure on steel producers around the world and escalate global trade tensions. On Monday, U.S. steel and aluminum prices spiked while the shares of foreign steelmakers fell. Due to a holiday, Chinese markets were closed Monday. The ongoing tariff war between two of the largest economies in the world has affected the Chinese manufacturing industry, and cast a shadow over the outlook for steel demand. This sector has now overtaken infrastructure and real estate as the largest steel consumers in the country. A private sector survey revealed on Tuesday that China's manufacturing activity contracted for the first month in eight in May. Official data had reported a second contraction. Coking coal and coke also fell, falling by 3.03% and 1,1% respectively to levels nearing nine-year lows. The Shanghai Futures Exchange has seen a decline in the steel benchmarks due to lower raw material costs. Rebar fell 1.18%. Hot-rolled coil dropped 1.04%. Stainless steel slipped 0.59% while wire rod remained unchanged. ($1 = 7.1932 Chinese Yuan) (Reporting and editing by Amy Lv, Lewis Jackson and Sonia Cheema).
-
Britain faces race to avoid $1 Billion in EU Carbon Tax Costs
Market experts say that Britain will have a difficult time linking its carbon market with the EU's within the next seven months to avoid UK companies being charged the carbon border tariff by the EU and facing annual bills of around 800 million pounds ($1.08billion) for the UK. As part of the "reset" after Britain's exit from the European Union in 2016, the two sides announced that they would link their carbon emission trading systems last month. The two sides have not set a deadline or described the steps that need to be taken before the European carbon border tax takes effect in January. It will probably take several years for the linkage to become effective. Ben Lee, senior emission analyst at Energy Aspects, said that the earliest date is 2028. However, it's likely to be 2030 or 2029. The UK government stated that a major benefit of joining the EU carbon market (or emissions trading system, ETS) is the ability to avoid being charged by the EU carbon border tariff, which will be implemented next year. This fee will be imposed on CO2 emissions associated to imports of goods such as steel, cement, and others. The UK government claimed that avoiding these costs could save them 800 million pounds a year. EU officials claim that in order to be exempt from the border tax on carbon, Britain must link its carbon market with the EU. Yan Qin, ClearBlue's carbon analyst, said that a full linkage would take several years due to the technical complexity of the process. He added that if the scenario is "optimistic", the link could be formed in 2027. A British government spokesperson said that the British government will try to reach an agreement on a carbon market connection as soon as possible. They said that they would not be providing a constant commentary on the negotiations. A spokesperson for the Commission said that the EU executive will "follow up quickly" on the agreement and propose to EU countries a negotiating mandat to start talks with Britain about the carbon market connection. TECHNICAL HURDLES For the UK to make this link, it must adjust its national rules on carbon trading permits. It also needs to bring its emission permit auctions into line with EU regulations and change the national cap for how much carbon can be emitted by companies that are covered by the market. Not only that. EU and UK schemes have not aligned yet on the number of free CO2 permits that they offer industries. The EU carbon market also has a "reserve", which can add or remove permits to the market in order to stabilize prices. The EU scheme lacks the "reserve" that Britain has, but it does have a mechanism to control costs and set a price ceiling. Ingvild Sörhus, senior analyst at Veyt, said that resolving the issue of an adjustment mechanism for supply will be one of many technical calibrations needed before the two systems are linked. Many businesses claim that these problems are easily resolved. Alistair McGirr is the Head of Policy and Advocacy for British energy company SSE. He said that with the right political will an ETS linking accord between the EU and UK can be signed in 6 months and operational by the year 2028. Energy UK, an industry group, said that linkage negotiations might be concluded within a year. However the UK should request a waiver from the EU border carbon tax until the link has been sealed in the event the talks drag on into 2026. "It's not a matter of major political roadblocks but rather of technical processes," said Adam Berman, Energy UK Policy Director. Adam Berman, Energy UK's Policy Director, said that the problems were not small, but not insurmountable. The UK is planning to introduce its own carbon-border tariff in 2027, a year after the UK. Brussels might be less in a hurry. Britain's carbon markets are less than one tenth the size of those in the EU, so any link would give British businesses access to a more liquid market. Although EU officials claim that the EU wants to extend carbon pricing to as many countries as is possible, in order to ensure they all put a price tag on greenhouse gas emission. The companies also claim that the move will reduce costs and avoid competitive distortions for EU and UK consumers. Pascal Canfin is a French member of the European Parliament who said that the benefits for Britain are more evident than those for the EU. Canfin said that the EU was motivated by a "political move". "The UK used to be part of [the EU] ETS." It's not a big deal. $1 = 0.7387 lbs. (Reporting and editing by David Evans, Susanna Twiddale, Kate Abnett)
-
Vietnam firms sign MoUs for the purchase of $2 billion worth of US farm products
The Agriculture Ministry announced on Tuesday that Vietnamese firms would sign memorandums with U.S. counterparts to purchase $2 billion of American farm products. This is part of the efforts to seal a trade agreement between the two nations. The Trump administration has imposed "reciprocal tariffs" of 46% on Vietnam. The tariffs have been suspended until July but if they are implemented, they could severely undermine a model of growth that relies on the exports to its largest market, the United States. The agriculture ministry announced that the new deals were signed by 50 Vietnamese companies, led by Agriculture Minister Do Duc Duy. They include five Memorandums of Understanding (MoU) to purchase $800 million worth of products from Iowa in the next three years. It added that the Iowa MoUs include purchases of corn and wheat, dried distillers grain, soybean meal, and other grains. Vietnam and the Trump Administration have been in negotiations over a trade deal, with Vietnam promising to allow more U.S. imported goods to reduce the trade deficit between the two nations. The United States recorded a $123 billion trade deficit with Vietnam in the past year. Vietnam News Agency reports that Vietnam exported agricultural products worth $13,68 billion to the United States last year, while buying $3.4 billion in farm produce from the United States. Vietnam has also promised to purchase other American products including Boeing planes, liquefied gas and natural gas. It has also pledged to Crackdown on counterfeits After the U.S. accused Canada of being a major center for illegal activities, including digital piracy.
-
VEGOILS - Palm oil prices rise as Dalian Oils firm and India cut import duties on crude edible oil
The price of Malaysian palm oil futures increased on Tuesday as a result of the stronger Dalian edible oil market, and India's reduced basic import tax for crude edible oils. By midday, the benchmark contract for palm oil delivery in August on the Bursa Derivatives exchange had gained 89 Ringgit or 2.29% to $3,967 Ringgit ($934.07) per metric ton. The Chinese edible oil market is a major driver of palm oil futures, and the demand outlook has improved since India, the largest importer of crude edible oils, announced a decrease in import duties. India reduced the basic import duty on crude edible oil to 10%, Friday. The country is trying to lower food prices and support the local refinery industry. Lim added that a recent increase in crude oil price has increased palm's appeal for use as a feedstock for biofuel, which is contributing to the bullish sentiment. Dalian's palm oil contract, which is the most active contract, gained 1.53%. Chicago Board of Trade soyoil prices rose 0.3%. As palm oil competes to gain a share in the global vegetable oil market, it tracks price changes of competing edible oils. According to AmSpec Agri Malaysia, an independent inspection company, exports of Malaysian products containing palm oil rose by 13.2% in May. Intertek Testing Services, a cargo surveyor, said that the increase was 17.9%. Data from the Statistics Bureau showed that Indonesia exported 6,41 million metric tonnes of crude and refined Palm Oil in the period January to April, a decrease of 5.37% compared to the previous year. Prices rose on supply concerns, as Iran is set to reject the U.S. proposal for a nuclear deal that would ease sanctions on the country's largest oil producer. The dollar was also weaker, which helped to support prices. Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger. Technical analyst Wang Tao stated that palm oil is neutral within a small range between 3,860 and 3,886 ringgits per metric ton. An escape from this narrow range could indicate a direction.
-
Higher margins for global oil refiners provide a short-term boost
In recent weeks, refiners around the world have made unexpected profits by producing fuels that are essential to summer demand. This is a welcome respite for a sector in trouble, before a predicted weakening of this year. Fuel markets are strong in contrast to crude oil prices that fell in May to a 4-year low after OPEC+ increased output faster than expected. This also indicates that demand has remained resilient despite concerns over tariffs. Neil Crosby, analyst at Sparta Commodities, said that margins are high because supply and demand balance is tight. The refining margin is the profit a refinery makes by converting crude oil into fuels like gasoline or diesel. Only a few short months ago, the oil majors warned that 2025 would be a difficult year for refinery. TotalEnergies reported lower profits in the first quarter due to weaker fuel earnings. Refiners are struggling with the waning of demand due to economic slowdowns. They also face increased competition from newer plants from Asia and Africa. According to Wood Mackenzie consultancy, global composite refining margins in May 2025 reached $8.37 a barrel, the highest level since March 2024. However, this is still lower than the average of $33.50 in June 2022, when demand recovered after the pandemic and Russia invaded Ukraine. Closures of refineries in the United States, Europe and Asia have helped to slow global net refinery growth below demand growth. This has made operational refineries more profitable. According to FGE, the global diesel supply is expected to decline by 100,000 barrels a day (bpd), while demand will fall by 40,000 bpd. Demand will increase by 28,000 barrels per day, while gasoline supply will decrease by 180,000 barrels per day. "We're seeing a tighter market for transport fuels, which is putting upward pressure on margins. This is much to the joy and relief of regional refiners," said FGE head of refined products Eugene Lindell. Qilin Tam, FGE’s head of refinery, said that all fuel-producing configurations benefit from the current margins. This is because both light fuels like gasoline and heavier products like fuel oils have increased recently. Shell's Wesseling plant and Petroineos Grangemouth refinery, both in Scotland, were closed this year. BP's Gelsenkirchen refining plant was also partially shut down. The refineries of Phillips 66 in Los Angeles and Valero in Benicia are scheduled to shut down in October 2025, respectively, in April 2026. The impact of refinery closures has also been compounded by unplanned shutdowns. JPMorgan reported that a power outage on the Iberian Peninsula on April 28 knocked down around 1.5 million barrels per day of refinery production. 400,000 barrels per day of this capacity were still offline two weeks later. In April, two of the world's largest new refinery projects - Nigeria's Dangote Refinery and Mexico's Olmeca Refinery - experienced unplanned shutdowns on their gasoline-producing units. TIGHTER BALANCES Fuel inventories in key hubs are down this year, causing an increase in demand for refinery production as we head into peak summer. JPMorgan analysts report that stocks in the OECD area, which includes the U.S. EU and Singapore, have fallen by 50 million barrels between January-May. Analysts said that the "significant reduction in product stock has highlighted the resilience of product prices." In the northern hemisphere, fuel demand is at its highest during summer due to an increase in motoring and aviation. Heavy fuel oil is most in demand during the summer months to cool down when temperatures are high. Janiv Shah, Rystad analyst, said that margins are supported by the strength of summer demand in northern hemisphere. Executives in the U.S. refinery industry are optimistic about demand while pointing out that stocks are relatively low. Brian Mandell, executive vice president of Phillips 66's first quarter earnings call, said that the company's current outlook for gasoline supplies is that inventories will continue to tighten. Maryann Mannen, CEO of Marathon Petroleum, said that the company's domestic and international businesses saw steady demand for gasoline and growth in diesel and jet fuel compared to 2020. Analysts warn that current strength could soon be eroded as trade wars hit demand and fuel production increases as plants seek to profit from higher profits. Austin Lin, Wood Mackenzie's analyst, said: "We think there will be a slight short-term bump." According to the International Energy Agency, the growth in global oil demand is expected to be 650,000 barrels per day (bpd) for the rest of 2025. This is down from 1 million bpd during the first quarter, as trade uncertainty has weighed on the world economy. A veteran oil trader who requested anonymity said, "I think that this is the best thing for refining companies."
FTSE indexes stabilise after sell-off on Trump tariff threats
The UK's FTSE 100 index edged higher on Wednesday as investors evaluated the fallout of U.S. Presidentelect Donald Trump's tariff dangers, while reducing federal government bond yields supported interest ratesensitive real estate and property stocks.
The blue-chip FTSE 100 and the midcap FTSE 250 both increased 0.2%, stabilising after the prior day's. sell-off on Trump's threat of large tariffs on a few of its secret. trading partners.
Housebuilders and real estate. stocks climbed 0.9% and 1.5%, respectively, as UK government. bond yields was up to their least expensive considering that Finance Minister Rachel. Reeves announced her first budget on Oct. 30.
Sterling surged 0.9% versus the dollar after information. showed new orders for essential U.S.-manufactured capital goods. suddenly fell in October, boosting expectations of a U.S. rate cut next month.
While the Federal Reserve is widely seen relieving rates in. December, traders expect the Bank of England to hold borrowing. costs amid concerns about inflation increasing once again.
Amongst single stocks,
Anglo American got 0.5% after the miner offered more. shares in its system Anglo American Platinum (Amplats),. raising gross proceeds of 9.6 billion rand (420.26 million. pounds).
Aston Martin fell as much as 9% to a more than. two-year low after the high-end carmaker warned that yearly earnings. could fall as much as 11% on delivery delays and said it would. raise new capital. The stock was down 5.5%.
Family Pets in the house Group plunged 17% after the merchant. projection modest growth in pre-tax revenue for the year through. March 2025, with demand lacklustre as animal owners reined in. costs.
(source: Reuters)