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LME WEEK: Trump, China and tariffs as the metals industry gathers to Asia
The metals industry will gather in Hong Kong to celebrate its annual event. They'll be focusing on the huge amounts of copper that are being diverted from the U.S. because President Donald Trump has threatened to impose tariffs. Trump's attempts to overturn the post-war system of trading have caused metals markets to roil and raised questions about global growth and commodity flows. In February, Trump ordered an inquiry into potential tariffs on copper. Copper is vital to energy transition technologies like electric vehicles and solar panel technology as well as power grid wiring. The possibility that Trump would impose tariffs on aluminum and steel in his first term fueled an increase in COMEX Copper, pushing prices to a new record of $11,633 a metric ton of copper on March 26, a date which was a significant milestone for the market. The London Metal Exchange (LME), which approves warehouses, has diverted cargos to China because of the premium on copper. CME inventories of copper are at an 8-year high, totaling 152,919 tons. LME warehouse stock is down 34% from mid-February. After weeks of withdrawals, the Shanghai Futures Exchange's (ShFE) warehouses in China saw their stocks drop to 80,705 tons, or four days worth, according to JP Morgan. A jump in stock levels this week has temporarily shifted the focus to whether Chinese demand will be strong enough to reduce inventories. A senior metals trader stated, "I am not surprised that the metals are being returned. We're not seeing real consumer demand in China." "The panic seems to have passed in China, at least for the moment." China's Yangshan Copper Premium Last week, the key indicator of import demand fell by 8% to $95 per ton. This is its highest level since December 2023, but it reverses a steady increase since March. The price differential between LME copper and COMEX has dropped to about $600 per ton, down from a high of $1,570 a ton in late March. This raises questions as to how long the U.S. can continue to exert its gravitational influence over copper stocks. Tariffs and Chinese Smelters As they negotiate a new settlement, attendees will have to deal with the uncertainty caused by the 90-day reprieve on tariffs agreed between the U.S. Within a few weeks of their implementation, the U.S. scrap copper exports to China had been cut, causing a shortage of feedstock for China's copper-smelters. As it continues to open new smelters, the industry faces deep negative margins. This is despite its overcapacity and lack of feedstock. Lewis Jackson, Pratima Deai, and David Holmes edited the article.
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Report says Buffett will sit with board members and not appear on stage at the 2026 Berkshire meeting.
The Omaha World-Herald published a report on Sunday that Warren Buffett, founder and chairman of Berkshire Hathaway, will not be making his usual appearance at the 2026 shareholders' meeting. The report stated that Buffett will instead be seated with the board of directors, while his successor, current vice chairman Greg Abel and the incoming CEO Greg Abel answer questions. The report said that Abel, Warren Buffett’s daughter, and Berkshire Board member, Susie Buffett requested Abel to take the stage in 2019. Abel informed the newspaper that next year's annual meeting would be held in Omaha, on May 2, but could not confirm this report immediately. Berkshire also did not respond immediately to a request for comment. The company announced earlier this month that Buffett will remain chairman once Abel becomes CEO. Berkshire announced this two days after Buffett, 94, revealed that he was stepping down from his CEO position at the annual meeting of the company in Omaha. This marks the end of Buffett's six decades as the head investor. (Reporting from Angela Christy, Bengaluru. Editing by Diane Craft.)
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How can Trump bring peace to Ukraine?
Donald Trump said that he would be meeting with the presidents from Russia and Ukraine to discuss stopping the "bloodbath" in Ukraine. What are the obstacles that the U.S. President faces when he is trying to negotiate a peace agreement with Russia and Ukraine? SECURITY GUARANTEE Ukraine, which has been subjected to a full scale invasion in 2022, and witnessed Russia annex Crimea, needs security guarantees from major powers, primarily the United States. Sources involved in the talks say that the problem is that a security agreement without teeth could leave Ukraine vulnerable. Diplomats talked about a "robust" security guarantee, including a possible Article 5-like agreement. The NATO article 5 treaty binds allies together to defend one another in the event of a military attack. Ukraine is not part of the alliance. According to a draft of a failed 2022 agreement, permanent neutrality was proposed for Ukraine as recompense for security guarantees by the five permanent members on the U.N. Security Council, Britain, China France, Russia, the United States and other nations such as Belarus, Canada Germany Israel Poland and Turkey. In their first high level talks since then in Istanbul, on 16 May, Russian negotiators reaffirmed their demand for neutrality in Ukraine. The Kremlin has said that the content of these talks should remain private. The officials in Kyiv have said that they will not accept neutrality for Ukraine. NATO AND NEUTRALITY Russia has said repeatedly that a possible NATO membership by Kyiv is unacceptable, and that Ukraine should be neutral with no foreign bases. Zelenskiy said that it was not up to Moscow to decide Ukraine’s alliances. NATO leaders in Bucharest agreed to admit Ukraine and Georgia as members one day at the Bucharest Summit of 2008. In 2019, Ukraine amended its constitution to commit to full membership in NATO and the European Union. U.S. ambassador General Keith Kellogg said that NATO membership for Ukraine was "off the table". Trump said that the U.S.'s past support of Ukraine's NATO membership was a major cause of war. Ukraine and Russia will discuss permanent neutrality in 2022. According to a draft of an agreement, Russia wants limits placed on the Ukrainian military. Ukraine is opposed to any restrictions on the size or capabilities of its military. Russia has stated that it does not object to Ukraine's EU membership bid, although some members of the EU could oppose Kyiv’s bid. Territorial Moscow claims to control about a fifth (or a fifth) of Ukraine, and that the territory now belongs formally to Russia. This is a position that most countries don't accept. In 2014, Russia annexed Crimea. According to Russian estimates, Russian forces control nearly all of Luhansk and more than 70% Donetsk and Zaporizhzhia regions. Russia controls a small part of Kharkiv. Putin's most comprehensive public peace proposals, which he outlined in June 2020, stated that Ukraine would be required to withdraw from all of these regions, including areas currently not under Russian control. The Ukrainian source claimed that his negotiators reiterated these demands at the Istanbul talks on May 16, according to the Ukrainian source. Alexander Kots is a war reporter for the Russian newspaper Komsomolskaya Pravda. According to Kots' report, the negotiators told their Ukrainian counterparts to give up all claims on the four regions, including Crimea. According to a draft plan created by the Trump Administration, the U.S. will de jure recognize Russian control over Crimea and de facto acknowledge Russian control over Luhansk, Donetsk, Kherson, Zaporizhzhia and other parts. Ukraine would gain territory in Kharkiv Region, and the U.S. will control and administrate Zaporizhzhia Nuclear Power Plant which is currently under Russian control. Kyiv has said that legally recognizing Russian sovereignty over the occupied areas would be illegal and violate Ukraine's Constitution. However, territorial issues could be discussed in talks after a ceasefire. In an interview with Breitbart published on May 12, Trump's envoy Steve Witkoff said: "The main issues are the regions and the nuclear plant. It's also how the Ukrainians can use the Dnieper River to get to the ocean." Sanctions Russia is in favor of Western sanctions being lifted, but is skeptical that this will happen soon. Even if US sanctions were lifted, EU sanctions and other Western sanctions such as those imposed in Australia, Britain and Canada could continue for many years. Ukraine wants sanctions to stay in place. The U.S. government has been reported to be looking at ways to ease sanctions against Russia's energy industry as part of an overall plan that would allow Washington to provide immediate relief in the event Moscow agreed to end the Ukraine conflict. OIL AND GAS Trump suggested that Putin, the leader of the world's 2nd largest oil exporter following the recent drop in oil price, may be more inclined towards resolving the Ukraine war, though the Kremlin stated that national interests always trump oil pricing. Some diplomats speculate that the U.S. and Russia are looking for lower oil prices in a larger grand bargain that includes issues ranging from the Middle East to Ukraine. Reports from Washington and Moscow earlier this month indicated that the U.S. was interested in helping Russia to increase its gas sales into Europe. CEASEFIRE Before talks can begin, European powers and Ukraine want Russia to agree to a truce. But Moscow insists that a truce will only be effective once the verification issues have been resolved. Kyiv claims that Moscow is trying to buy time. Trump claims that this is possible, despite Kremlin's denials. RECONSTRUCTION UKRAINE European powers are looking to Kyiv to provide assistance with the reconstruction of Ukraine, which will cost hundreds and billions of dollars. According to Kots the war correspondent in Istanbul, Russia's negotiators said that they wanted both parties to agree to not demand any reparations or to present bills for war damages. RUSSIAN SPEAKERS Kots reported that the Russian negotiators at the Istanbul summit said they wanted Ukraine to accept European standards for minorities in order to protect Russian-speaking and ethnic Russians living in Ukraine. Kots said that they demanded Kyiv stop what Moscow called "nationalist propaganda". Ukraine denies Russian accusations that it persecutes Russian-speaking speakers. Reporting by Guy Faulconbridge, Andrew Osborn and Philippe Fletcher. Editing by Gareth Jones & Philippe Fletcher.
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Central Coast wins A-League Women's Grand Final in penalty shoot-out victory
Central Coast Mariners have won the A-League Women’s Grand Final in Australia with a 5-4 shoot-out victory over Melbourne Victory, after a 1-1 tie following extra time. This is the first time the team has claimed the title. Captain Bianca Galic scored the final penalty, giving Central Coast the victory. Alana Jancevski of Victory had earlier hit the crossbar on the first spot kick. After a 1-1 tie in regulation, neither team was able to score during the 30 minutes of additional time. Isabel Gomez gave Central Coast the advantage less than one minute into the second period when she prodded the football past Courtney Newbon, as the Victory defense failed to clear Annalise Rasmussen’s deflected shoot as it looped in the air. Claudia Bunge equalized with 10 minutes left, after Annabel Martin was unable to stop her from crossing the goal line. The central defender met Alana Murphy’s corner with an impressive header. Jancevski missed the goalpost with his first kick in the penalty shoot-out, leaving Galic to score in the final and fifth round. (Reporting and editing by Jamie Freed; Michael Church)
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Israel airstrikes kill 100 or more in Gaza during ceasefire talks
Local health officials said that Israeli airstrikes in the Gaza Strip killed at least one hundred Palestinians overnight. This was announced as mediators held a new round ceasefire talks between Israel, Hamas and other parties. The Israeli military did not immediately comment on its expansion of strikes in the enclave that have killed hundreds of people in the past week. This is in preparation for an upcoming ground offensive in order to gain 'operational controls' over parts of Gaza. "We have had at least 100 martyrs in the last 24 hours." Israeli bombings have wiped out entire families from civil registration records, Khalil al-Deqran told me by phone. Israel has been blocking the entry of food, fuel and medical supplies into Gaza from the beginning of March in an attempt to pressure Hamas to release Israeli hostages. It has also approved plans which could include seizing and controlling the entire Gaza Strip. Hamas has said that it will only release the hostages if Israel ceases its war. On Saturday, Egypt and Qatar mediators - backed by the United States - began a second round of indirect ceasefire negotiations between the two parties. However, sources close to these discussions said that there was no breakthrough. According to a Palestinian official who is close to the talks taking place in Doha, Qatar, Hamas has been flexible with the number of hostages that it can release, but Israel's commitment towards ending the war has always been the issue. Sky News Arabica in Britain and BBC reported that the militant Palestinian group proposed to release about half of its Israeli hostages for a ceasefire lasting two months and the release Palestinian prisoners held by Israel. A Hamas official, when contacted by, said: "Israel’s position remains unchanged. They want their prisoners freed, but without a commitment of ending the war." Israel struck a tent camp housing displaced families near Khan Younis, in the southern Gaza Strip. The strike killed women and children and injured dozens. It also set several tents on fire. Hamas called the strike a "new violent crime" and blamed U.S. officials for the escalated situation. Three journalists and their families were among the dozens of people killed on Sunday. Officials from the medical field said that another family lost at least twenty members in northern Gaza. Medics confirmed that Zakaria al-Sinwar was the brother of Yehya al-Sinwar who Israel murdered last October. Three of his children also died in an Israeli airstrike in their tent located in central Gaza Strip. Sinwar taught history at a Gaza University. Israel's repeated raids and bombardments on Gaza hospitals have left the Gaza healthcare system barely functional. Israel accuses Hamas of causing widespread hunger by blocking aid supplies. Deqran stated that "Hospitals have become overwhelmed by the increasing number of casualties. Many are children. There are several cases of amputations, and hospitals which are repeatedly hit by the occupation are suffering from shortages of medical equipment." In a statement released on Saturday, the Israeli military stated that it had conducted extensive strikes in Gaza to achieve its war goals. Israel has declared its goal in Gaza to eliminate the military and government capabilities of Hamas. Hamas attacked Israeli communities October 7, 2023 and killed around 1,200 people. It also took about 250 hostages. Gaza's health authorities report that the Israeli military campaign has destroyed the enclave. Nearly all residents have been forced to leave their homes, and more than 53,000 Palestinians have died. Reporting by Nidal al-Mughrabi, May Ange and Sandra Maler; Editing by Philippa Fletcher and Sandra Maler
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Mexican security forces kill 12 and arrest 9 during raid on suspected gang site
Mexico's Security Ministry reported that Mexican security forces arrested nine suspected members of a criminal gang and killed twelve others during an operation on Saturday in a rural area of southwest Mexico. Omar Harfuch, Minister of Security, confirmed on social media that three Navy members were injured during the Navy-led operations in Huitzontla (Michoacan). Harfuch stated that the detained individuals were linked to crimes like homicide, kidnapping and extortion. The Security Ministry released a statement saying that criminal groups are linked to drug trafficking in the maritime sector. Naval personnel also found weapons and other tactical equipment on the site. The ministry stated that security forces were confronted with "strong aggression," which "necessitated use of force according to current regulations." Mexican newspapers El Universal, and La Jornada have reported that this group is part of Jalisco New Generation Cartel, one of Mexico’s two largest drug cartels. In February, the U.S. designated the cartel as a terrorist group. Reporting by Brendan O'Boyle, Jose Gonzalez and Sandra Maler
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Meloni warns EU's green policies could lead to 'industrial desertification.
Giorgia Mello, the Italian prime minister, warned on Saturday against rigid green policies that could destroy Europe's industrial base. She called for a more conservative approach to ecological transition in order to protect economic and social stability. Meloni, after a meeting with German Chancellor Friedrich Merz said that the European Union’s push for electrification in particular the automotive sector could undermine the manufacturing strength of the continent. Meloni, a reporter in Rome, said: "I've often said that there is no green in a desert." "Before we do anything else, it is important to fight desertification in the European industry." She stated that alternative fuels, such as hydrogen and biofuels, must play a key role in Europe's eco-strategy. Meloni criticized the EU's previous regulatory approach, saying that it was too rigid and had "crushed", sectors such as the automotive industry. She expressed concern about Europe's dependence on non-European electric vehicle supply chain dominance, calling it a strategic weakness. She said: "I still believe that it is counterproductive to concentrate solely on electric transition where supply chains are not under the control of Europe but other actors." Meloni called on the European Commission (EC) to revise key aspects of so-called Green Deal. This includes new emission calculations that take into account the entire vehicle production cycle, and not just the tailpipe emissions. The European Parliament voted earlier this month to relax rules for European automakers. This means they won't have to meet EU CO2 emission targets for cars and trucks that could have resulted in fines up to 17 billion euros (15 billion euros). After heavy lobbying by automakers, the European Commission has proposed that they meet their targets using the average emissions for the period of 2025-2027 rather than this year. Meloni added that bilateral cooperation in the automotive industry could have a significant impact. (Reporting and editing by Crispian B. Balmer)
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At least 21 people have died in Kentucky and Missouri as a result of severe storms
Officials said that at least 21 people died overnight in Kentucky and Missouri as a volatile weather pattern spawned a tornadoes across the Midwest and Great Lakes of the United States. Andy Beshear, Governor of Kentucky, stated that at least 14 people had been killed in Kentucky and that the death toll would likely rise. He declared an emergency in his own state earlier, just as Missouri Governor Mike Kehoe did. Beshear posted on social media that "we lost at least fourteen of our people last night" but the number will likely increase as more information is received. At least nine deaths occurred in Laurel County about 150 miles south of Louisville where a tornado struck late Friday night, said Sheriff John Root on social media. He called it "a mass casualty incident." He said there were many severe injuries and that a search was underway for survivors. Social media images showed the destruction caused by the tornado in Laurel County. Entire blocks of houses were reduced to splinters and cars, pickup trucks, and other vehicles were battered and crushed. A reported twister in Union County, 250 miles west of Laurel County and near the Illinois border, leveled homes in Morganfield. However, there were no reports of immediate casualties. A TORNADO HITS ST. LOUIS Cara Spencer, the mayor of St. Louis said that a tornado had ripped through St. Louis earlier, causing at least five deaths, 38 injuries and 5,000 property damages as it tore roofs off. The tornado also knocked out power lines, and it swept through rush hour traffic in a major thoroughfare on Friday. Officials report that two other people were also killed in Scott County in southeast Missouri. Spencer, who became mayor one month ago, said to reporters Friday night that "our city is in mourning." The loss of lives and destruction are truly, truly horrific. Joan Miller, a resident of St. Louis, recounted the narrow escape she had when a tornado hit her brick home. She said, "The tree in front of me was shaking violently because the wind began." "Suddenly, all the doors closed and the windows flew from the bedroom. The entire back of my home... now you can see into the alley." National Weather Service reported widespread thunderstorms across parts of the Mississippi Valley, Tennessee Valley and Ohio Valley on Friday. At least half-a-dozen tornadoes have touched down in Missouri, Illinois and the surrounding area. Other severe weather has reached the Atlantic Coast and another tornado was reported in New Jersey. U.S. Homeland Security Secretary KristiNoem told reporters that she spoke with the governors in Missouri, Kentucky, and Illinois about offering federal resources to assist their states with the aftermath. She wrote on Twitter: "We discussed that emergency management should be led by local authorities. We reaffirmed that DHS is ready to act immediately to offer resources and assistance." Noem has been a champion of a change to the federal strategy under the Trump administration for managing disasters by shifting responsibility to the states. The proposed budget of President Donald Trump includes significant cuts to the Federal Emergency Management Agency (FEMA), which is under her jurisdiction. According to poweroutage.us which tracks blackouts throughout the United States, as of Saturday afternoon about 155,000 customers in Kentucky and Missouri were without electricity. Frank McGurty, Frank McGurty, Steve Gorman, Daniel Trotta and Harshita meenaktshi contributed to the reporting; Susan Fenton, Diane Craft, Rod Nickel and Susan Fenton edited.
REFILE-Wall St weighed by tech weak point, oil extends slide
U.S. stocks followed world stocks lower on Tuesday as weak sales projection from chipmaker ASML weighed on tech shares, while unrefined extended its slide due to alleviating supply worries and deteriorating need.
The 3 major U.S. indexes headed lower soon after the opening bell, with the S&P 500 and the Dow easing back from Monday's record closing highs.
Financial companies Goldman Sachs, Citigroup and Bank of America all published better-than-expected earnings, while healthcare companies UnitedHealth and Johnson && . Johnson results underwhelmed investors.
But Netherlands-based chip devices maker ASML posted 3rd. quarter results that surprised markets with weak bookings and. lower-than-expected sales projections, ugly news that proved. contagious to the U.S. chip sector. The U.S. stock market is so greatly weighted in tech, it's. going to drive where the general market appears to be going,. stated Rob Haworth, senior financial investment strategist at U.S. Bank. Wealth Management in Seattle. But below the surface it's not. problem throughout the board.
The global story is more due to soft data, Haworth included. Energy stocks, pulled lower by moving unrefined rates,. suffered the steepest portion drop. The Dow Jones Industrial Average fell 277.46 points, or. 0.64%, to 42,787.76, the S&P 500 fell 35.70 points, or. 0.61%, to 5,824.15 and the Nasdaq Composite fell 161.89. points, or 0.87%, to 18,340.79. European stocks posted their. biggest one-day portion drop in over two weeks, weighed by. tech stocks in the wake of ASML's frustrating annual sales. forecast. On the other hand, investors stayed focused on the European Central. Bank's rate choice on Thursday.
MSCI's gauge of stocks across the globe. fell 5.29 points, or 0.62%, to 851.89. The STOXX 600. index fell 0.8%, while Europe's broad FTSEurofirst 300 index. fell 19.22 points, or 0.92%.
Emerging market stocks fell 11.34 points, or. 0.98%, to 1,148.72.
Oil rates slid to a near two-week low, extending Monday's. losses amidst relieving supply pressures arising from the dispute in. the Middle East, amid reports Israel's Prime Minister Benjamin. Netanyahu told U.S. President Joe Biden's administration that. Israel would prevent striking Iranian oil targets. Furthermore, OPEC and the International Energy Company both. decreased their worldwide need forecasts, mostly due to weakness in. China.
Sliding oil prices are disinflationary and that's a. favorable for the broader economy, said Tim Ghriskey, senior. portfolio strategist Ingalls & & Snyder in New York. What you're. seeing now is the speculation that Middle East oil residential or commercial properties. are going to be exempt from attack.
And falling oil costs does say something about worldwide. demand.
U.S. crude tumbled 4.40% to $70.58 per barrel, while. Brent fell to $74.25 per barrel, down 4.14% on the day. Standard U.S. Treasury yields edged lower, stopping briefly after. touching a 2-1/2 month high in the wake of soft production. information from the New York Federal Reserve.
The yield on benchmark U.S. 10-year notes fell. 3.7 basis indicate 4.036%, from 4.073% late on Friday.
The 30-year bond yield fell 5.9 basis points to. 4.3228% from 4.382% late on Friday.
The 2-year note yield, which usually relocates. action with rates of interest expectations, increased 1.3 basis indicate. 3.954%, from 3.941% late on Friday.
The dollar was nominally lower against a basket of world. currencies in the middle of wagers that the Federal Reserve will continue. with modest rate cuts in the near term.
The dollar index, which determines the greenback. versus a basket of currencies consisting of the yen and the euro,. rose 0.08% to 103.26, with the euro down 0.19% at. $ 1.0888.
Versus the Japanese yen, the dollar weakened 0.29%. to 149.31.
Gold got traction as the dollar lost some momentum.
Area gold increased 0.49% to $2,664.00 an ounce.
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(source: Reuters)