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Aura Minerals, a Canadian company, prepares to list on Nasdaq and targets a $2.1 billion valuation
Aura Minerals, a Canadian gold and copper mining company, is planning to list its shares at the Nasdaq. This could give the company an estimated value of $2,14 billion. If the company priced its public offering at a price near to that of July 4th's closing price on Toronto Stock Exchange, it could raise approximately $210 million. Foreign companies often list in the U.S. for higher valuations and to tap into deeper capital markets. Investors were rattled by uncertainty over President Donald Trump's policies on tariffs, and new listings were frozen. But sentiment has changed as new listings are gaining momentum. The proceeds from Aura’s U.S. Offering will be used to strengthen the business, including additional liquidity and financial flexibility in support of its strategic growth initiatives. Aura Minerals expects to list under the Nasdaq symbol "AUGO" after selling 8.1 million shares. The gold and copper miner was founded in 1946 and focuses on the development of projects and operations throughout the Americas. The joint bookrunners of the offering are BTG Pactual, Itau BBA and BofA Securities. Reporting from Prakhar Srivastava, Bengaluru. Editing by Shashesh Kuber
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Dollar gains on stocks as Trump prepares 25% tariffs against Japan and South Korea
The dollar gained strength on Monday after U.S. president Donald Trump announced sharply increased tariffs against goods imported from Japan, South Korea, and other countries. This is the latest development in U.S.'s trade war. The yields on longer-dated U.S. Treasury bonds rose. Trump began Monday telling his trade partners, including Japan and South Korea, that higher U.S. Tariffs will begin August 1. Trump in April set a 10% cap on all so-called reciprocal Tariffs with trading partners until July 9, to allow time for negotiations. Only two agreements have been reached, with Britain, and Vietnam. Adam Sarhan is the chief executive officer of 50 Park Investments, a New York-based investment firm. He said: "Markets like certainty and the news of today increases the level uncertainty. Hence the selloff." Tariffs will likely increase prices and slow growth. However, uncertainty about the final policies could be more of a drag on business as they postpone making decisions. Next week, S&P 500 companies are expected to start reporting their results for the second quarter. The Dow Jones Industrial Average dropped 422.17 points or 0.94% to 44,406.36, while the S&P 500 declined 49.37 points or 0.79% to 6,229.98, and the Nasdaq Composite lost 188.59 or 0.91% to 20,412.52. U.S. listed shares of Japanese automakers fell. Toyota Motor was down 4%, and Honda Motor by 3.9%. Tesla shares also fell 6.8% when CEO Elon Musk revealed the formation of the "American Party," a new political party in the United States. MSCI's global stock index fell by 5.80 points or 0.63% to 919.93. The pan-European STOXX 600 closed at 0.44%. The yield on benchmark U.S. 10 year notes rose 5.7 basis points in the last day to 4.397%. The yield on the interest rate-sensitive two-year note rose 1.9 basis to 3.901%. It was the dollar's increase against the yen that was most noticeable. The dollar was up by 1.09% to 146.130. The euro fell 0.57%, to $1.172 after a rally of over 13% this year. The dollar index (which measures the currency in relation to six major counterparts) rose by 0.517%, reaching an all-time high of 97.467. The minutes of the Federal Reserve's last meeting are due this week. Investors are trying to determine how many times they expect the Fed to reduce interest rates in this year, after Thursday's jobs data showed that employers had added more jobs than forecast. The oil price rose on signs of strong demand, which offset the impact from a higher than expected OPEC+ production increase for August as well as concerns over possible tariff effects. Brent crude futures gained $1.28 or 1.9% to settle at $69,58. U.S. West Texas Intermediate Crude gained 93 cents, or 1.4% to settle at $67.33. (Reporting from Caroline Valetkevitch, New York; Additional Reporting by Lawrence White, London; and Wayne Cole, Sydney; Editing and rewriting by Cynthia Osterman and Stephen Coates.)
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Study: Abandoning EU 2035 zero emission car target could risk 1,000,000 jobs
A study released by the campaign group Transport & Environment on Tuesday showed that the European Union could achieve its 2035 target of clean cars and implement policies to help the transition. T&E stated that if no industrial strategy is implemented and the target of 2035 of all new cars and vans in the EU not emitting carbon dioxide is not met, it could lead to the loss of one million jobs in the auto industry and two thirds of the planned battery investment. Why it's important European automakers are already facing high costs on their home markets, and they have to compete with their Chinese and U.S. competitors in the electric vehicle market. Now, President Donald Trump has imposed 25% tariffs on imports of automobiles. This has forced many manufacturers to withdraw their forecasts for the year 2025. In May, after heavy lobbying by the industry, the European Parliament backed a softer approach to the EU CO2 emission targets for cars, vans, and trucks. However, it has not yet changed the regulation that bans the sale of fossil fuel cars before 2035. KEY QUOTES In a statement, Julia Poliscanova Senior Director of Vehicles & Emobility Supply Chains, T&E said: "It is a moment that will make or break Europe's Automotive Industry as global competition for the lead in production of electric vehicles, batteries, and chargers, is immense." By the Numbers The advocacy group stated that if the 2035 target is maintained and policies to increase domestic EV production were implemented, the contribution of the automotive value chain to the European economic system would grow by 11% by the year 2035. The report added that the loss of jobs in the vehicle industry could be offset by creating more than 100,000 new jobs in battery manufacturing by 2030, and 120,000 jobs in charging by 2035. The report stated that a weakening of the goal, coupled with a lack of comprehensive industrial policy could reduce the value chain's contributions by 90 billion euro ($105.5 billion), by 2035. $1 = 0.8529 Euros (Reporting and editing by Milla Nissi-Prussak in Gdansk)
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BP and Shell will study the hydrocarbon potential of three Libyan oilfields
Oil Majors BP & Shell have agreed to work with Libya's National Oil Corp. (NOC) on hydrocarbon exploration and production at three Libyan fields, NOC announced in a Monday statement. Libya, Africa's largest oil producer and a Member of the Organization of the Petroleum Exporting Countries(OPEC), has experienced disruptions to its oil production due to disagreements between armed factions about oil revenues. These disputes have led to the shutdown of oilfields. Foreign investors are wary about investing in Libya. The country has been in chaos since Muammar Gadaffi was overthrown in 2011. Oil giants such as Eni, OMV and BP resumed their exploration activities in Libya after a decade-long hiatus. NOC reported that BP would reopen its Tripoli office during the fourth quarter of 2025. The company also announced that it had signed a Memorandum of Understanding with BP for the purpose of conducting studies to evaluate the potential hydrocarbon production and exploration in the Messla oilfields and Sarir as well as some nearby exploration areas. Separately the state oil company said that it had agreed with Shell to conduct a technical and economic feasibility report to develop Atshan and other fields owned entirely by the NOC. According to the NOC's website, the national oil production in the last 24 hours reached 1.385 millions barrels per day.
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TSX drops as trade jitters continue
Canada's main index of stocks closed lower on Sunday, following U.S. stock markets, after U.S. president Donald Trump announced new tariffs against Japan, South Korea and other countries, causing trade worries among Canadian investors. The benchmark S&P/TSX Composite Index closed at 27,020.28, down 15.88 points or 0.06%. The TSX index fell earlier in the morning as investors waited for updates on developments in trade. The index reached new all-time records every day of the week, and it also hit another record on Monday. Wall Street's main indexes ended lower following Trump's announcements on tariffs. Greg Taylor, Chief Investment Officer at PenderFund Capital Management, said: "It is more of a warning, that these friendly countries are getting close to tariffs. And that's probably just a reminder that Canada hasn't yet gotten out of the woods." "We are starting to realize that the (worries about tariffs) have not completely disappeared, and that there will still be some uncertainty regarding earnings. Investors say, "Well, we have had such huge gains." Why don't you take a break and enjoy your profits?" Energy stocks also fell by 0.6% and healthcare stocks dropped 0.3%. Gold pared its losses following Trump's tariff announcement, causing some investors to seek out safe-haven investments. ATS Corporation, the largest individual stock on the TSX index, fell 8% as Andrew Hider, the CEO, is leaving the company. Sandstorm Gold rose 6.2% when Royal Gold announced that it would acquire the company for approximately $3.5 billion. Horizon Copper has gained 67.7% since Royal Gold announced that it had acquired the company for $196 million in cash. Reporting by Nivedita Bali in Toronto, Twesha Dhikshit and Sukrit Gupta from Bengaluru. Editing by Sahal Muhammad and Richard Chang.
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US rules could increase oil and gas production in US West
The U.S. The U.S. Interior Department proposed rule changes on Monday to allow energy companies more easily to combine oil and natural gas output from several leases using the exact same well pad. This could save the industry up to $1.8 billion annually, according to the department. The proposed rule, which would primarily affect onshore oil-and-gas drilling in the U.S. West would ease limitations on so called commingling. According to the Department, this would improve operations. The Interior Secretary was directed to approve the commingling of applications by President Donald Trump’s tax-cut law. The current U.S. Bureau of Land Management regulation restricts commingling of leases with identical mineral ownership, royalties rates and revenue distribution. Interior has said that the requirements are a barrier in areas of the West with complex mineral ownership. According to the Department, this change will allow oil and gas companies to track production more accurately and calculate royalties that drillers must pay to the federal and tribal governments for fossil fuels produced in public and tribe lands. Interior Secretary Doug Burgum stated in a press release that the current rules were designed for a different time. These updates will allow us to manage public resources more effectively, promote responsible energy production and ensure that taxpayers and tribal members receive every dollar owed. Western Energy Alliance is pushing for more access to commingling. They say it's one of the fastest ways to increase production in the United States. Many projects have been stalled for years because the Interior Bureau of Land Management has not approved federal and private oil in consolidated projects. Trump's "energy dominance policy" pushes the administration to reduce regulations on fossil fuels. Many of these regulations are meant to slow down climate change and pollution. (Reporting and editing by Deepababington, Timothy Gardner)
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Demand outweighs OPEC+ production increase
On Monday, oil rose by more than 1% due to signs of strong demand. This was despite a higher-than expected OPEC+ production increase for August and concerns over the possible impact of U.S. Tariffs. Brent crude futures were up 79 cents or 1.2% to $69.08 at 02:05 pm. ET (18:05 GMT). U.S. West Texas Intermediate Crude was trading at $67.29 up 29 cents or 0.4%. Earlier in the session, benchmarks fell to $67.22 ad $65.40 respectively. Dennis Kissler is senior vice president for trading at BOK. Travel industry statistics revealed that a record number of Americans were set to travel by road and air for the Fourth of Independence holiday. The Organization of the Petroleum Exporting Countries (OPEC+) and its allies agreed to increase production in August by 548,000 barrels a day, a higher rate than the 411,000 bpd they increased for the previous three months. RBC Capital analysts led by Helima Crockt said in a report that the OPEC+ agreement will return nearly 80% (2.2 million bpd) of the voluntary cuts made by eight OPEC producers to the market. Analysts said that the actual increase in production has been less than expected and the majority of the supply comes from Saudi Arabia. Saudi Arabia raised its August price of its flagship Arab Light crude on Sunday to a record high for Asia. Goldman analysts anticipate OPEC+ will announce a final increase of 550,000 bpd for September during the next meeting, on August 3. The oil industry was also under pressure when U.S. officials announced a delay in the start of tariffs, but did not provide any details about changes to rates. Investors worry that higher tariffs will slow down economic activity and reduce oil demand. Treasury Secretary Scott Bessent announced on Monday that the United States would make several announcements about trade in the next 48-hours. He added that his email inbox was flooded with last-ditch proposals from countries looking to reach a tariff agreement before July 9. Jeffrey McGee is the managing director of Makai Marine Advisors. Geopolitical uncertainty continued. Yemen's Iran aligned Houthis claimed on Monday that they had destroyed a cargo vessel in the Red Sea with remote-controlled boats and rockets, their first attack on high seas of the year. Israeli Prime Minister Benjamin Netanyahu will meet Trump at the White House Monday. Israeli officials are also holding indirect talks with Hamas to reach a ceasefire in Gaza and a deal for hostage release mediated by the United States. According to an interview published on Monday, Iranian President Masoud Pezeshkian believes that Iran can solve its differences with the United States by dialogue. However, trust will be a problem after U.S. attacks and Israeli attacks against his country. (Additional reporting by Florence Tan, Ahmad Ghaddar and Marguerita Choy; Editing by Nick Zieminski, Cynthia Osterman and Margueritachoy)
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Dollar rises as Trump announces 25% tariffs against Japan and South Korea
The dollar gained against the major currencies as the stock markets declined on Monday, after President Donald Trump announced 25% tariffs on imports from Japan and South Korea. Investors awaited more announcements regarding the White House’s trade negotiations. Treasury Bills with a longer expiration date yields edged higher. On Monday The U.S. will impose a 25 percent tariff on imports of goods from Japan and South Korea starting August 1. He also revealed the first of a series of letters he said he would send to trading partners describing the new charges they must pay. Toyota Motor and Honda Motor, both Japanese automakers listed on the U.S. stock exchange, fell by 4.1% and 3.8% respectively. Treasury Secretary Scott Bessent announced earlier Monday that the United States would make several announcements about trade in the next 48-hours. A deadline of Wednesday has been set to complete trade agreements. "We are down (in the stocks) after the weekend and it is a crucial week for the tariffs," Peter Cardillo said, chief market analyst at Spartan Capital Securities, New York. Investors are cautious because they don't know what will happen in the future with trade deals. Tariffs will likely increase prices and slow growth. However, uncertainty about the final policies could be more of a drag on business as they postpone making decisions. S&P 500 companies will soon begin to report results for the second quarter. Trump announced in April that he would impose a base tariff of 10% on the majority of countries, and increased "reciprocal rates" up to 50%. The original deadline was this Wednesday. He also warned that the levy could be as high as "60% or 70%" and threatened to add an additional 10% for countries who align themselves with the "anti American policies" of BRICS, the group consisting of Brazil, Russia India and China. The Dow Jones Industrial Average dropped 515.77, or 1.15 percent, to 44.314.92. The S&P 500 declined 56.23, or 0.90 percent, to 6,222.20. And the Nasdaq Composite was down 195.58, or 0.97 percent, to 20,404.31. Tesla shares fell 7.4% after Elon Musk, CEO of the electric vehicle manufacturer, announced the formation a new political party in the United States called the "American Party." The MSCI index of global stocks fell 7.06 points or 0.76% to 918.65. The pan-European STOXX 600 closed with a gain of 0.44%. The yield on the benchmark 10-year U.S. notes increased 5.1 basis points, to 4.391% from 4.34% at late Thursday. The dollar index (which measures the greenback versus a basket currencies) rose by 0.58%, to 97.53. Meanwhile, the euro fell by 0.59%, to $1.1709. The dollar gained 1.04% against the Japanese yen to reach 146.02. The minutes of the Federal Reserve's last meeting are due this week. Investors are trying to determine how many times they expect the Fed to reduce interest rates in this year, after Thursday's jobs data showed that employers had added more jobs than forecast. At a meeting scheduled for Tuesday, it is expected that the Reserve Bank of Australia will cut rates by a quarter-point to 3.60%. This would be the third rate reduction in this cycle. The markets predict rates of either 2.85% or 3.10 percent. U.S. crude oil rose by 0.7%, to $67.47 per barrel. Brent was up to $69.21 a barrel on the same day.
Product streams at risk should Trump spark tit-for-tat trade war: Russell
Much of the dispute surrounding the ramifications of a possible 2nd U.S. presidential term for Republican Donald Trump has focused on what may take place to the U.S. and international economies.
Trump's plan to impose tariffs of 10% on virtually all imports into the United States, and as much as 50% on those from leading trading partner China, have actually raised the spectre of greater inflation and rates of interest, and a less competitive market.
However for products, the larger danger of a Trump return to the White House is the reaction the remainder of the world is likely to have to the imposition of U.S. trade tariffs.
Political leaders across the globe will be unable to sit idly by if Trump locations barriers on their exports to the United States.
Any unilateral action by Trump is hence most likely to be met by retaliation from U.S. trading partners, even if they are erstwhile political allies, such as countries in Europe and some in Asia, such as Japan, South Korea and even India.
If it's inescapable that U.S. trading partners react to Trump's proposed actions by putting tariffs on imports from the United States, the primary concern is then what type will they take?
While major U.S. exporting business such as plane maker Boeing will have cause for concern, a far easier target for retaliation is likely to be U.S. commodity exports.
The United States is the world's biggest exporter of liquefied natural gas (LNG), and ranks fourth globally for exports of petroleum and all grades of coal.
A major buyer of U.S. products is China. If Trump were to enforce tariffs of 50% on its exports, Beijing could efficiently restriction all product imports from the United States, either formally or informally.
U.S. exports of crude oil to China were 10 million barrels in July, according to product analysts Kpler, and that figure is expected to rise to 16.58 million barrels in August, which would be the most because April 2023.
For the first eight months of this year U.S. unrefined exports to China are tracking at about 309,000 barrels daily (bpd),. which represents just about 3% of China's total imports, however. represent about 7.5% of total U.S. deliveries.
Simply put, it would likely be fairly easy for China to. stop buying U.S. crude and discover alternative providers, such as. Angola and Brazil.
But how simple would it be for U.S. oil manufacturers to change. the loss of Chinese purchasers?
Much will depend upon whether other countries place tariffs on. U.S. commodity exports.
Envision if the European Union, Japan and South Korea all put. a 10% tariff on U.S. crude in retaliation for Trump putting a. comparable impost on their exports to the United States.
The European Union, Japan and South Korea usually account. for about 60% of U.S. crude exports.
By putting tariffs on U.S. crude, LNG and coal, the rest of. the world could keep U.S. energy exports in the market, however. force U.S. companies to either deal discount rates to keep their. prices competitive or lower output.
United States LNG EXPOSED
U.S. LNG exporters might be more vulnerable than crude. producers, given they have no alternative markets aside from. exports.
For China, changing U.S. LNG would be more tough than. changing U.S. crude, but still most likely doable, provided the relatively. little proportion of U.S. LNG in its total imports.
In July, China's imports of U.S. LNG were 670,000 metric. tons, or about 10.5% of the monthly overall of 6.39 million.
For the United States, exports to China represent just about. 8% of its overall LNG shipments. However if Japan and South Korea are. added in too, then exports to the 3 main Asian buyers. increase to about a quarter of the total, based upon U.S. deliveries in. June of this year.
If tariffs were put on U.S. LNG by the North Asian. importers, it would put pressure on U.S. business to lower. costs to compensate.
U.S. coal exports have actually balanced about 7.5 million loads a. month for the first seven months of the year, however there is no. dominant buyer. Rather there is a broad range of importers that. all purchase reasonably small volumes.
This suggests that buyers of U.S. coal could probably find. alternative providers for the small volumes involved, but U.S. exporters may have a hard time to discover brand-new markets must a bulk of. its existing purchasers impose retaliatory tariffs.
In general, the photo that emerges is one of significant. vulnerability for U.S. energy exporters if we do see another. trade war, provided how countries might respond to the tariffs. presently being proposed by the previous president's camp.
Naturally, Trump still has to overcome most likely Democratic. prospect and existing vice president, Kamala Harris, in the. November election, and after that in fact follow through on what is. likely to be a widely-criticised trade policy.
However the risk stays significant. In 2022, Russia's invasion. of Ukraine showed us what can occur when a political occasion. roils energy markets.
If Trump is elected and does start a trade war, the. disruption may not be quite on that scale. However product flows -. and hence a large part of the global economy - might be affected. if the marketplace has to adjust to an unpredictable political dynamic. when again.
The opinions revealed here are those of the author, a columnist. .
(source: Reuters)