Latest News
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Mali: Security forces kill and kidnap civilians
Malian forces killed and arrested around 20 Fulani civilians at a livestock auction in the central region of West Africa, according to a local activist. Women from the town of Diafarabe where the incident occurred staged a rare protest against their disappearance on Wednesday. The activist reported that "a survivor" who had managed to escape Diafarabe told him they had killed the victims, executed some, slitted their throats, and buried them all in a mass grave. The activist who cannot be named due to safety concerns is very close to Tabital Pulaaku - an international organization that represents the Fulani. The activist reported that the incident occurred on Monday, in a rural region on the banks the Niger River. The men were put on a canoe, and then taken to a cemetery island where they were murdered. The Mali armed forces have not responded to comments made on Thursday. The Russian mercenaries known as Africa Corps and Wagner, who were formerly in the military, are supporting the armed forces. They could not be contacted for comment. Human Rights Watch accused both groups for committing atrocities against civilians. Last month, the U.N. called for an inquiry after bodies in decomposition were discovered on the edge of a military base in the southwest Koulikoro area of Mali. The military government of the country, which took power in coups that occurred in 2020 and 2021 has expelled French forces and other Western troops and turned to Russia for support. The public is becoming increasingly frustrated with the ruling junta over the postponement and crackdown of political freedom. This month, hundreds of people rallied to demand multi-party elections. Chanting slogans such as "down with dictature, long live democracy", they chanted. The protests were in response to a recommendation by the national council that Assimi goita be given a five-year extension and all political parties be dissolved. (Reporting and writing by TiemokoDiallo, Ayen DengBior; editing by Jessica Donati & Ed Osmond).
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Phillips 66 reduces portfolio by selling German and Austrian retail sales amid Elliott pressure
Phillips 66 announced on Thursday that it would sell a 65% share in its German-Austrian fuel retail business, valued at $2.8 billion. The U.S. refiner is attempting to simplify its portfolio under pressure from activist investor Elliott Investment Management. Elliott, which owns a $2.5-billion stake in Phillips 66 has been pressing for major changes to the company. This includes the possible spin-off or sales of its midstream businesses. It is also seeking to refresh its board to align its strategic goals. Elliott did not respond immediately to a question about the divestment. Institutional Shareholder Services and Glass Lewis, two proxy advisory firms, recently recommended that shareholders support Elliott’s board nominees before Phillips 66’s annual general meeting (May 21), indicating a growing support for Elliott’s campaign. Phillips 66 is expecting to receive approximately $1.6 billion pre-tax from the sale. It plans to use the cash to reduce debt and increase shareholder returns. This could help it gain support from investors before the AGM. In morning trading, shares of the company fell by 0.8%. The deal will be with a consortium headed by Energy Equation Partners, Stonepeak and include 970 fueling station, of which 843 are branded JET. It is expected to close during the second half 2025. A newly formed joint-venture will allow the Houston-based firm to retain a non-operating 35% interest in its business. Phillips 66, as part of this deal, will continue to supply the company with fuel products produced at its MiRO refinery located in Karlsruhe, Germany. This contract is for a number of years. The refinery produces a variety of products, including transportation fuels and petrochemical feedstocks. It also produces home heating oil. Reporting by Tanay in Bengaluru, editing by Tasim.
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US manufacturing output drops in April due to weak auto production
The U.S. manufacturing sector is expected to struggle in the second quarter due to tariffs. The Federal Reserve announced on Thursday that factory output fell by 0.4% in April after a 0.4% increase, which was upwardly revised for March. The Federal Reserve said on Thursday that economists polled had predicted production would fall 0.2% following a 0.3% increase previously reported. In April, the production at factories grew by 1.2% compared to last year. The President Donald Trump's changing tariffs policy is a major headwind for manufacturing, which makes up 10.2% of the US economy and heavily relies on imported raw materials. The Trump administration reduced duties on Chinese imports to 30% last weekend from 145%. However, a tariff of 10% on almost all imports as well as a tax of 25% on motor vehicles and parts as well as steel and aluminum remained. Trump has defended tariffs, saying they are necessary to revive the U.S. industry base. However, economists claim it's impossible to bring back factories that have moved overseas, citing the high costs of production and labor. After a long slump caused by higher interest rates, manufacturing grew 4.8% in the first three months. The auto industry's output of vehicles and parts dropped by 1.9% in December after rising for the previous two months, likely because automakers were trying to keep up with tariffs. The motor vehicle industry has warned that tariffs will significantly reduce profits in 2018. Durable manufacturing production decreased by 0.2%. The nondurable manufacturing sector saw a 0.6% decline in production. After posting impressive gains in the two previous months, mining output fell by 0.3%. Utilities production recovered 3.3%. This followed two consecutive monthly declines. The overall industrial production remained unchanged in April after declining by 0.3% in the previous month. In April, it increased by 1.5% compared to the same period last year. Capacity Utilization for the Industrial Sector, a measure on how well firms use their resources, dropped to 77.7% in March from 77.8%. This is 1.9 points below the average for 1972-2024. The manufacturing sector's operating rate dropped by four-tenths a percentage point, to 76.8%. This is 1.4 points below the long-term average. Lucia Mutikani, reporting; Paul Simao, editing
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Two years after the Sudan war, drone attacks have cut off power in Khartoum State
Authorities said that drone attacks had cut off power in Khartoum, and other surrounding states, on Thursday. This was as the Rapid Support Forces, a paramilitary group, continued their long-distance attack campaign, more than two years after they began fighting with Sudan's Army. RSF, who has been largely pushed out from central Sudan over the past few months, has changed tactics, switching from ground attacks to drone strikes on power stations and dams in territory held by the army. Sudanese Electrical Company released a statement saying that drones had struck Khartoum on Wednesday evening. The Sudanese Electrical Company said that staff were working to extinguish large fires, assess the damage and repair it. The war between two opposing forces has destroyed the country. It has forced more than 13,000,000 people from their homes, and caused famine and diseases to spread. In the fighting, tens of thousands have been killed. RSF drone attacks on the army’s wartime capital Port Sudan, and other areas, have plunged the majority of the country into prolonged blackouts. The water supply has also been affected, adding to the difficulties and increasing the risk of spreading cholera and diseases. Army sources confirmed that the army continued to fight in southern Omdurman (part of Khartoum), where it was attacking pockets of RSF militants. The clashes have also forced thousands of people to flee the most active frontline during the war in Western Kordofan. The army has been trying to seize key oil-producing zones and advance into RSF territory. In the Darfur region the army is also trying to break the siege of the city al-Fashir - its last foothold. According to the United Nations, the conflict over the transition from military to civil rule has led to acute hunger in half of the population. The conflict has seen the momentum swing back and forth, but neither side appears to be close to winning. (Reporting and editing by Andrew Heavens; Khalid Abdelaziz, Nafisa eltahir)
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US EPA sends a proposal for biofuel blend volume to White House for review
The U.S. Environmental Protection Agency sent a proposal rule to the White House, asking for its review. It outlines the amount of biofuels that oil refiners will have to blend into their fuel starting in 2026. Since President Donald Trump's inauguration in January, the politically powerful oil and fuel lobbies have been waiting for this proposed rule. This will be the first opportunity for the Republican President to demonstrate his support for the biofuels policies, which have historically pitted Big Oil against the Farm Belt. This dynamic changed in the run-up to the proposed rule. A coalition of oil and fuel groups has recommended The EPA, who administers the volumes of biomass-based diesel blends, has previously reported that federal mandates for the blends in 2026 are 5.25 billion gallons. This figure represents a significant rise from the previous mandates. The Chicago Board of Trade's soybean oil futures fell by over 5% Thursday, on rumors that the EPA proposed rule would set the biomass-based diesel blend for 2026 to 4,65 billion gallons. Could not confirm this figure. Previously, it was reported that the EPA would propose a regulation covering both 2026-2027. Previous EPA rulemakings on renewable volume obligations finalized total federal volumes The 20.94 billion gallon mark will be reached in 2023. 21.54 billion in 2024. 22.33 in 2025. The Renewable Fuel Standard requires oil refiners to blend biofuels in their fuels or purchase credits from others who do. (Reporting and editing by Tomaszjanowski and Mark Porter; Reporting and Editing by Stephanie Kelly and Jarrett Renshaw)
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China export restrictions propel tungsten at its highest level since 2013.
The price of tungsten in Europe has risen to its highest level in over a decade this month, as traders scrambled to find supplies after China reduced export quotas and imposed restrictions on the metal, which is used in aerospace and electronic applications, military and other. In February, China implemented export controls on tungsten and other metals such as tellurium, bismuth, molybdenum and indium in response to U.S. Tariffs. According to traders, prices of APT, which is used to produce tungsten metal, have risen to $400 per metric tonne unit (mtu), the highest level since late 2013. Prices have risen 18% since the beginning of February. A minor metal trader stated that "people are looking for alternatives, but it is not easy to find them because of the natural scarcity of metal." China's first batch mining quota of tungsten ore for this year has been set at 58,000 tonnes, a decrease of 6.5% on an annual basis. According to the U.S. Geological Survey, China will dominate global tungsten supply, with 67,000 tons of tungsten in 2024. Oliver Friesen is the CEO of Guardian Metal Resources. He said: "Since China's export ban was announced, there has been a growing panic about the inability to obtain new primary tungsten materials." Tungsten, an extremely hard metal, is only surpassed by diamonds in terms of strength. It is used to manufacture items like cutting tools, armor plating and military-grade artillery. Almonty Industries announced last week that it had entered into an agreement to supply tungsten dioxide exclusively for U.S. defense applications. Almonty is a specialist in tungsten exploration and mining, and has mines in Spain and Portugal. Lewis Black, President of Almonty Industries, said that Almonty could produce enough tungsten to meet the defense needs in the U.S., E.U., and Korea but not for all civilian and defense markets combined. Since 2015, the United States has not been engaged in commercial mining of tungsten and is still highly dependent on imports for its needs.
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Angola's economic and debt challenges
The International Monetary Fund cut its growth forecast for Angola in 2025 to 2.4%. This was primarily due to concerns over the impact that lower crude oil prices would have on government finances, and the higher interest rates seen on global markets. Angola's economic and debt challenges are explained here: Why are investors concerned about Angola? The dollar bonds of the small African economy were also hammered during the turmoil on the markets that followed the U.S. tariffs imposed at the beginning of April. Concerns grew in April, when JPMorgan requested an additional $200 million of security from the government to back its $1 billion loan backed by Angola’s dollar bonds. Angola was also heavily exposed to the oil price drop that came with the turmoil on the markets. This heightened the concerns. IMF data shows that Angola's crude oil exports are the second largest in sub-Saharan Africa. They account for 95% of its exports and 60% of government revenues. It is also estimated to be responsible for three quarters or all economic activity. In its budget for 2025, the government assumed that oil prices would be $70 per barrel. However, during the peak of the market sell-off the price fell as low as $65. Brent crude traded at $63.93 per barrel on Thursday. All of this is happening as the government must repay external debts totaling $9.1 billion in this year. This includes a Eurobond that matures in November. WHAT HAS GOVERNMENT SAYN ABOUT THE PROBLEMS? Vera Daves de Sousa, Finance Minister, said that the drop in oil prices has increased the likelihood that the government will turn to the IMF to get a new loan. The Ministry of Finance has also defended the borrowings up to this point by saying that loans were used for building hospitals and boosting water supply. The government said that it would review its budget if pressure continues. It will also carefully consider its future debt financing to ensure debt sustainability. Angola's analysis of debt sustainability shows that the total debt was close to 70% GDP last year, and is expected to continue to fall as a percentage of economic output. The IMF, however, classifies Angola as a country at high risk of financial distress due to its exposure to currency risks. Around 80% of Angola’s debt is held in foreign currencies, including oil-backed Chinese loans. The government claims it has increased repayments to China, and that the country can weather the storm of lower oil prices. Angola does not have a strong local debt market to which it can turn when external financing becomes tighter. The IMF stated that a push last year to remove fuel subsidy to relieve financial pressure did not achieve the desired savings. What is the social impact and what are the government's options? Angola’s social service spending has decreased by 55% in the last two years due to the increasing debt burden. Debt Justice is a campaign group based in London. Analysts said that the pressure had also hampered its ability to invest heavily in infrastructure projects. Angola plays a major role in a new U.S.-backed transportation corridor, Lobito. It links the Democratic Republic of the Congo, Zambia, and Angola’s Atlantic Coast, which exports minerals. This week, the government held talks with IMF officials. One of these meetings was between IMF Africa chief Abebe Aemro Selassie (and Angola President Joao Lurenco) in Luanda. Angola has not yet provided any information on a possible new lending program. Reporting by Duncan Miriri, Nairobi; and Miguel Gomes, Luanda. Editing by Karin Strohecker & Toby Chopra.
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Turkey expects Syrian Kurdish Militia to fulfill Damascus Deal
Hakan Fidan, Turkey's Foreign Minister, said that the YPG Syrian Kurdish militia must fulfill a deal it made with the Syrian Government. The group is expected to be integrated into Syria’s armed forces. The YPG is seen by Turkey as an affiliate group of the Kurdistan Workers Party, a militant group that has fought against the Turkish state since the 1970s and announced Monday its decision to disarm. We see that the YPG has not taken any action so far. Fidan said at a press briefing during an informal NATO meeting of foreign ministers in Antalya, southern Turkey. He added that "in order to achieve stability in Syria, it is essential that there be a comprehensive, legitimate government and armed forces." The YPG is the leader of the U.S. supported Syrian Democratic Forces, which controls much of Syria’s oil-rich north and signed a deal in March with Damascus to join Syria’s new state institutions. In the March agreement, SDF-controlled border posts, an airport, and oil and gasfields in eastern Syria were also to be included under Damascus' administration. The implementation is expected to be completed by the end the year. However, it's unclear how the SDF military operation will be integrated. Reporting by Tuvan Gümrukcu, Writing by Daren B Butler; Editing and proofreading by Alexandra Hudson
As markets wait for US data, stocks ease and the dollar trembles.
The dollar fell as traders looked to U.S. economic data for more catalysts.
Brent crude futures fell more than 2% and U.S. Crude also dropped.
The benchmark 10-year Treasury yield reached a new high, partly due to concerns over the budget plan of President Donald Trump that will add trillions to U.S. debt.
The week began with a slew of positive news for investors, from a truce in the U.S.-China Trade War to a slew of investment deals that made headlines from the Middle East on Trump's Gulf Tour. These moves breathed new energy into battered international stocks.
The optimism of Thursday has largely faded, with MSCI's broadest Asia-Pacific share index outside Japan down 0.15%. Wall Street futures are also slightly lower after marginal gains in the overnight cash session.
Tony Sycamore is a market analyst for IG. He said, "We had a big party and everyone was hungover. Now we are just recovering and waiting for the next party."
The U.S.-China trade agreement gave the markets some cause to celebrate, but the lack of clarity regarding Trump's policies on trade has left the markets with an underlying sense of uncertainty about the global economic outlook.
Investors also awaited further details on trade agreements with other countries.
"I feel there's a bit of a hesitation to move the market up from here," Sycamore said.
"I do not think that foreign investors will rush back to their overweight positions in U.S. stocks because that confidence has been shaken by the events of the last couple of months. Both from tariffs and legislators."
The European market was also set for a gloomy start. EUROSTOXX Futures were down 0.17%, while DAX Futures fell 0.23%. FTSE Futures were not much changed.
The Nikkei Index fell by 0.85% in Japan. China's CSI300 blue chip index fell 0.63%, while Hong Kong's Hang Seng Index dropped 0.55%.
Investors are waiting for Walmart's earnings and sales data for Thursday to get a sense of the consumer mood. Walmart is a bellwether retailer for the U.S. industry.
A poor result could fuel fears of a global recession, which would drag down markets.
Later in the day, Federal Reserve Chair Jerome Powell will also speak. The focus of his speech will be any clues about the outlook for U.S. interest rates.
DOLLAR FRAGILE
The dollar struggled to maintain its gains from the beginning of the week. It fell 0.55% to 145.99 yen.
The euro increased by 0.2% to $1.1193.
The Korean won was particularly volatile for the second consecutive day after the news broke that South Korea's Deputy Finance Minister Choi Jiyoung had met with Robert Kaproth (assistant secretary for international finance at the U.S. Treasury) to discuss the dollar/won exchange rate on May 5.
Bloomberg's report that Washington was not negotiating a weaker currency as part of the tariff talks calmed currency markets. However, investors remain wary that Washington may be pursuing a similar strategy.
The recent moves in won were similar to the unprecedented rise in the Taiwan dollar at the beginning of this month.
Last, the dollar dropped more than 0.8% versus the won to 1,395.52.
Goldman Sachs analysts said in a report that while details were scarce and discussions of this nature may have been part of an ongoing dialogue, the situation brought to light how undervalued currencies could appreciate in a weaker-dollar environment.
After data showed Australian employment exceeded expectations in April, the Aussie surged before paring back some of these gains. Last time it bought $0.6432.
Spot gold dropped 1.2% elsewhere to $3,141.16 per ounce.
(source: Reuters)