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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.
After a jolt, the dollar and UK bonds are stable after strong US jobs data
The dollar and Wall Street rose on Thursday as the U.S. employment data was strong. In Europe, Britain's bonds recovered from renewed debt concerns.
The announcement of a trade deal between the United States of America and Vietnam before the deadline for worldwide U.S. tariffs next week encouraged bulls over night. And the strong U.S. job numbers helped the dollar double the gains of the day and ensured that the S&P 500 opened at new all-time highs.
The Labor Department reported on Thursday that nonfarm payrolls grew by 147,000 jobs after increasing 144,000 in May. The economists polled predicted that 110,000 new jobs would be added in June.
As traders delayed the timing of Fed rate cuts, they accompanied the rise in stocks and dollar with a surge in U.S. Treasury Yields.
The yield on the 2-year note, which is usually in line with expectations of interest rates from the Federal Reserve, increased 8.9 basis points, to 3.88%. The yield on the benchmark U.S. 10 year notes increased 4.9 basis points to 4,342%
Seema Sha, Principal Asset Management's Chief Global Strategist said that the fact that payrolls were higher than expected, the drop in unemployment rates, and the fall in claims for joblessness "completely dispels the argument" of imminent rate cuts.
She added that it "implies there is no absolute urgency for Fed support" and predicted no cuts until the end of the year.
The pan-European STOXX 600 Index remained 0.4% higher, and MSCI's main 47 country world shares gauge remained on track for its seventh highest record in the last eight session.
The bonds of Britain recovered some of the losses suffered on Wednesday due to uncertainty about Finance Minister Rachel Reeves’ future. However, they remained lower than recent levels.
The 20-year bond yield, a proxy for longer-term borrowing costs by the UK government, has eased 8 basis points since its highest spike on Wednesday in October 2022, during Liz Truss' ill-fated tenure as premier.
Reeves' tearful appearance in parliament raised questions about Reeves' future and Britain’s public finances, after the government had to abandon billions of pounds of cuts in welfare spending.
Susannah Streeter is the head of money markets and financial services at Hargreaves Lansdown.
Analysts were closely watching the data after the private sector payrolls report, released on Wednesday, surprised them with its first decline in more than two years.
Investors also waited to see if the tax and spending bill of U.S. president Donald Trump was passed by Congress. According to nonpartisan analysts, the bill will add $3.3 trillion over the next 10 years to the United States’ $36 trillion national debt.
Ding Ding
The U.S. announced overnight that it had reached a deal with Vietnam. This included a 20% tariff for exports to the U.S., which is still higher than the previous rate of 46%.
Vietnamese shares rose 0.5%, the most since April 2022. However, the dong currency fell to a record low at 26,229 dollars per dong.
Shane Oliver is the chief economist of AMP. He said, "Although more trade deals will be announced soon, the 20 percent tariff with Vietnam is not a good sign. That or even higher rates could become the standard for many, including Europe and Japan."
In fact, Japan invoked its national interests when talks with the U.S. stalled, and South Korean President Lee Jae Myung stated on Thursday that U.S. Tariff negotiations looked difficult, but he couldn't say if they could be concluded by next Tuesday.
MSCI's broadest Asia-Pacific share index closed 0.3% higher. China's blue chip index rose 0.6% as weak services data led to expectations of further stimulus. Japan's Nikkei, meanwhile, finished flat.
The dollar is still barely above its three-year low despite the payrolls increase. The pound was at risk of stagnating again after Wednesday's 0.8% drop.
Futures indicate less than 25% likelihood of a Fed rate cut in this month. The Fed hasn't eased its policy this year and Trump is furious. He reiterated on Wednesday his call for Jerome Powell, the Fed Chair, to resign.
Trump has been berating Powell since his January return to the White House for failing to lower borrowing costs. Trump said that rates should be reduced to 1%, from the current Fed benchmark rate of 4.25%-4.50%.
UBS' survey of reserve managers on Thursday revealed that two thirds believe the Fed's independence is in danger and nearly half believe the U.S. rule of law may be deteriorating to the point where it could influence their asset allocation.
Oil prices dropped on the commodities market after a 3% increase overnight, as Iran suspended its cooperation with U.N.'s nuclear watchdog.
Brent crude futures fell 0.8% to $68,64 per barrel. U.S. crude oil was down 0.7% on the day. Gold prices fell 0.1%, to $3352 per ounce. (Reporting and editing by PhilippaFletcher; Marc Jones)
(source: Reuters)