Latest News
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Italian police claim that a mafia hit a Chinese couple in Rome, killing them.
Police suspect that the execution of a senior member of China's underworld, along with his companion, was a result from a turf war between Italian criminal networks and Chinese criminals. Zhang Dayong, 53 (also known as "Asheng"), and his partner Gong Xiaoqing 38 were found dead outside their home on Monday in the eastern Roman suburb of Pigneto. Investigators found that Zhang was a member of the Naizhong Zhang team, which is currently on trial in Florence after an investigation into allegations that he coordinated illegal activities across Italy, France and Germany. Prosecutors said that Zhang was able to gain a near monopoly on the distribution of goods in much of Europe by using violence and threats against Chinese owners of companies. Dayong, according to prosecutors was involved in managing underground gambling operations, loan-sharking, and enforcement in the capital. Police officials said that the murders could be connected to the "Coat Hanger Wars", a violent conflict between Chinese criminal groups originally centered near Florence in the northern city Prato.
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Nvidia shares fall as US chip sales curbs hurt the company. Gold hits record levels
Asian and European stocks fell along with U.S. futures on Wednesday as AI darling Nvidia was hit by U.S. restrictions against chip sales to China, as the global war on trade intensified. Gold rose to a new record while the dollar fell. Treasury yields moved slightly higher in anticipation of the Federal Reserve chair Jerome Powell's speech later that day. The traders are wondering if Powell will echo the tone of his Fed Governor Christopher Waller. Washington has issued new export licensing for Nvidia’s H20 artificial intelligence chip and AMD’s MI308 artificial intelligent chip sales to China. Nvidia estimated that the move would cost $5.5 billion and its shares fell 6% after-hours. Daniel Ives is an analyst at Wedbush. He said: "This disclosure shows that Nvidia has huge restrictions and obstacles in selling to China." The Street will react to this news with a lot of nervousness. They are worried that these are the opening shots in the battle for tech between the U.S.A. and China. Beijing/Xi won't just take the news and ignore it. Donald Trump also ordered an investigation into the possibility of new tariffs for all U.S. imports of critical minerals, in addition to reviews on pharmaceuticals and chips imports. Beijing continues to be aggressive, and has reportedly told airlines to stop delivering Boeing aircraft. The STOXX 600 index fell by 0.8% in Europe. U.S. S&P futures also fell by 0.8%, while Nasdaq Futures dropped 1.5%. In the afternoon, Asian stocks began to decline. MSCI's broadest Asia-Pacific share index outside Japan dropped 1% and ended a four-day streak of gains. The Hang Seng index in Hong Kong fell 1.9%, but Chinese blue chips rose by 0.3% as investors digested solid GDP data which predated April's tariff increases. Aneeka Gupta is an economist and strategist with WisdomTree. Gupta stated that the Chinese restrictions have raised concerns about access to global technology hardware. This is also leading to a "risk-off" sentiment in the market. The White House stated that Trump is willing to make a deal with China, but Beijing must be the first one to move. GOLD SHINES Gold bullion reached a new record of $3,318 an ounce last week, up 2.2%. The Australian bank ANZ updated its forecast on Wednesday for gold to reach $3,600 per ounce by year's end. They argued that the demand for safe haven assets would increase. The U.S. Dollar Index, which tracks currency against six peers fell 0.5%, to its lowest level since April 2022, as investors continued to be cautious with U.S. assets. The Japanese yen, and Swiss francs, which are seen as safe assets in times of market turmoil, have rallied by around 0.4% and respectively. The yen has reached its highest levels since September, while the franc has reached its highest level in 10 years. Bank of Japan Governor Kazuo Ueda said to the Sankei daily that if U.S. Tariffs hurt the Japanese Economy, the central bank might need to take action. This could mean a halt to the rate-hike cycle. Investors shifted into European government bonds when stocks dropped, but avoided Treasuries. After a spike in yields last week, which was attributed to concerns over the stability of the U.S. economic system, the benchmark 10-year Treasury Yield is now up by 1 basis point. Germany's 10-year Bond yield is now at 2,505%. This is the lowest it has been since early March. Prices and yields are inversely related.
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Sources say that India is looking to end import taxes on US LPG and ethane in trade negotiations.
Three sources with knowledge of the situation said that India intends to eliminate taxes on U.S. imports of ethane, liquefied petrol gas (LPG), and other petroleum products. The move is part a broader negotiation with Washington to reduce India's trade surplus and lower its tariff burden. India is considering scrapping the import tax on U.S. LNG and increasing purchases of fuel from the United States. As President Donald Trump’s sweeping tariffs rattle markets and economies, several Asian nations with trade surpluses in Washington are importing more U.S. Energy to avoid heavier tariffs. India levies an import tax of 2.5% on propane, butane and ethane. These are used to produce LPG, which is primarily used for cooking fuel. According to Indian government statistics, India imported 18.5 millions metric tons LPG valued at $10.4 billion in the fiscal year 2023-24, mainly from the Middle East. According to the U.S. Energy Information Administration (EIA), it was the second largest buyer of U.S. Ethane, after China. It imported 65,000 barrels a day in the past year, while China imported 227,000. The U.S. - China trade war has pushed tariffs sky high and will likely curtail China's exports. India's biggest buyer of ethane is Reliance Industries. It operates the largest petrochemicals facility in the world. New Delhi and Washington agreed to begin work in February on the first phase for a trade agreement to be completed late this year. The goal is to increase bilateral trade from $457 billion to $500 billion before 2030, and reduce India's trade surplus of $45.7 billion. Sources in the Indian government said that officials from the commerce and finance ministries will make a final decision regarding duty reductions. The three men spoke under condition of anonymity because the discussions were sensitive. The Indian Finance and Commerce Ministry did not reply to email seeking comment. Analysts believe that India has limited options to increase its imports of U.S. liquid gas due to the lack of storage tanks, ships and crackers to process it. It will be difficult for the US increase ethane imports to India as India has already maximized its use as a fuel due to current margins," Cheryl Liu said, an analyst at Energy Aspects. She said that India's steam-cracker capacity is approximately 9.5 million metric tonnes of ethylene production. This can accommodate up 2 million tons (92,000 Bpd) ethane feedstock. Prashant Vashisth said that it is easier logistically to import more LPG. India imports around 60% of its LPG requirements.
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Sources say that dozens of US EIA employees are leaving, putting vital energy data in danger.
Five sources said that the U.S. Department of Energy's statistics division is likely to lose dozens after the Trump Administration's latest round resignation offers. This will put at risk some the most closely followed energy reports in the world, they added. Energy Information Administration (EIA) publishes data on a weekly, monthly, and annual basis. This includes crude and fuel inventory, price forecasts, and figures for oil and gas production. These are all used by energy companies and traders as indicators of future demand and supply, which can affect prices. According to one source, up to a third of EIA’s 300-350 employees have left the agency or accepted buyouts. This has happened since the beginning of the year. Three EIA employees, among others, claimed that the number of departures was in the dozens. It's difficult to predict whether the weekly energy data will continue. One source said, "I can't imagine how they'll continue over time." Three sources, without mentioning the projects, said that the EIA has put new project development on hold or delayed. The EIA has not responded to a comment request. More than 2,600 U.S. Department of Energy employees have accepted resignation offers. The hardest hit offices were those dealing with power grid stability, and those that deal with loans for high-tech projects. A DOE spokesperson responded to an article's request for comments by saying that the DOE was conducting a review of its entire organizational structure. The spokesperson stated that "no final decisions have yet been made, and many plans are still under consideration." Market participants are closely following the EIA's publications in order to make trading decisions. The EIA also publishes smaller articles for the public to help explain jargon and describe trends in the energy industry. EIA data is used by industry analysts to create their own models or to confirm their models. According to the website of the agency, its data, analyses and forecasts do not require approval from any officer or employee of U.S. Government, thereby ensuring that it is free of bias. The EIA data was a great help in determining prices and leveling the playing field. John Kilduff of Again Capital, who has used the data as input in every model for more than 20 year said that it would be damaging not to have this data. Kilduff continued, "This information will be held closely by companies and I don't believe that it would be shared with the industry." Reporting by Arathy S. Somasekhar, Stephanie Kelly, in New York and Valerie Volcovici, in Washington D.C.
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Indonesia Nickel group demands a reevaluation of the new mineral royalty rules
Secretary general Meidy Kathrin, of the Indonesia Nickel Miners Association, said that on Wednesday they called on the government to reevaluate a recent regulation imposing higher royalty rates on nickel ore. Meidy says that the new royalties will burden miners already facing rising costs. She said that she understood that the policy had been officially enacted but hoped that the government would still allow for dialogue. Meidy stated that under the new rules Indonesia will impose a royalty rate of 14% to 19.0% on nickel ore. This is an increase from the existing single tariff of 10.0%. Semi-refined nickel pig iron, however, will be subject to a royalty of 5% to 7.0%. She said that the new regulation will take effect 15 days following its signing date on April 11. The rates are the same as those announced following a consultation held last month. Officials from the Energy and Mineral Resources Ministry did not respond when asked for comments on the new regulation. (Reporting and editing by John Mair; Fransiska Nanangoy)
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Putin and Qatari emir discuss Ukraine and Middle East
The Kremlin announced on Wednesday that Russian President Vladimir Putin and Qatar's Emir, Sheikh Tamim Bin Hamad al-Thani, will meet in Moscow to discuss Ukraine and Middle East. Dmitry Peskov, Kremlin's spokesman, told reporters that there would be a "definitely" an exchange of views on Ukrainian issues between Putin and Emir of Qatar. There will be an exchange on regional issues as well. "The conflict potential in the region is enormous." Qatar is a major player in the efforts to resolve many problems," Peskov stated. The emir will arrive in Moscow on Tuesday and meet Putin on Thursday. Qatar has tried to mediate a number of disputes between Russia and Ukraine and helped arrange for the return of separated children from both countries. We highly value the current and potential level Peskov stated that Qatar was "a great partner for our economic and trade cooperation". And, of course our confidential dialogue, which covers many sensitive topics. (Reporting and writing by Anastasia Lyrchikova, editing by Guy Faulconbridge; Lucy Papachristou is the writer; Guy Faulconbridge is the editor).
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Sandvik's core profits miss expectations in the first quarter
Sandvik, a Swedish manufacturer of metal-cutting equipment and mining equipment, reported on Wednesday a core profit for the first quarter that was below expectations. The company also said that it expects tariffs to have a minimal impact on margins in future. Operating profit before amortization and items affecting comparableability increased 9% from a previous year to 5.77 billion Swedish Crowns ($588.75 millions) in the third quarter. However, it missed a median forecast of 5.91 million crowns by analysts polled at LSEG. In a recent statement, CEO Stefan Widing stated that the impact of tariffs on Sandvik's margins will be "limited". The global tariff announcements have not yet affected demand for Sandvik products. He said that the recent announcements of increased global tariffs would have an impact on the macroeconomic climate going forward. It is still too early to make any predictions about how the new regulations will impact our industries or market segments in the future. Sandvik's orders rose by 2% in value to 32.76 billion crowns compared with the same period of last year. Sandvik is a good indicator of the demand for industrial products in Scandinavia, given its large customer base and quick lead times. At 0935 GMT its shares were down by 1.6%, trading at roughly the same level as they did before it released its quarterly report.
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Nvidia shares fall as US chip sales curbs hurt the company. Gold hits record levels
Asian and European stocks fell along with U.S. futures on Wednesday as AI darling Nvidia was hit by U.S. restrictions against chip sales to China in the midst of the intensifying trade war. Gold rose to a new record, and the dollar declined. Treasury yields fell slightly before a speech by Federal Reserve chair Jerome Powell, scheduled for later that day. The traders are wondering if Powell will echo the tone of his Fed Governor Christopher Waller. Washington has issued overnight new export licensing requirements to China for Nvidia’s H20 artificial intelligence chip and AMD’s MI308 artificial intelligent chip. Nvidia shares fell 6% after hours trading after the company said that it would cost $5.5billion. Daniel Ives is an analyst at Wedbush. He said: "This disclosure shows that Nvidia has huge restrictions and obstacles in selling to China." The Street will react with apprehension, as they are worried that these are the opening shots in the US-China tech war and Beijing/Xi won't just take the news and walk off. Donald Trump also ordered an investigation into the possibility of new tariffs for all U.S. imports of critical minerals, in addition to reviews on pharmaceuticals and chips imports. Beijing continues to be aggressive, and has reportedly told airlines to stop delivering Boeing aircraft. Early European stock markets fell, with the STOXX 600 Index down by 0.9%. U.S. S&P futures dropped 0.7%, while Nasdaq Futures dropped 1.3%. In the afternoon, Asian stocks began to decline. MSCI's broadest Asia-Pacific share index outside Japan dropped 1% and ended a four-day streak of gains. The Hang Seng index in Hong Kong fell 1.9%, despite the fact that the blue chip index of China rose 0.3% as investors digested solid GDP data which pre-dated the April tariff increases. Aneeka Gupta is an economist and strategist with WisdomTree. Gupta stated that the Chinese restrictions have raised concerns about access to global technology hardware. This is also leading to a little risk-off feeling in the market today. The White House stated that Trump is willing to make a deal with China, but Beijing must be the first one to move. GOLD SHINES Gold has been unstoppable in the face of uncertainty, and it is now at a record high of $3.318 an ounce. This was a 2% increase. The Australian bank ANZ updated its forecast on Wednesday for gold to reach $3,600 per ounce by year's end, arguing safe-haven demands for the asset will pick up. The U.S. Dollar Index, which tracks currency against six peers fell 0.5%, to its lowest level since April 2022, as investors continued to be cautious with U.S. assets. The Japanese yen, and Swiss francs, which are seen as safe assets in times of market turmoil, have rallied by around 0.4% and respectively. The yen has reached its highest levels since September, while the franc has hit its highest levels in 10 years. Bank of Japan Governor Kazuo Ueda said to the Sankei daily that the central banks may have to take action if U.S. Tariffs hurt the Japanese Economy, indicating the possibility of a halt to the bank's rate hike cycle. As stocks declined, investors moved into government bond markets. However, U.S. Treasuries rose less than German Bunds. The benchmark 10-year rate was down by 1 bp to 4.316% after yields surged on last week's concerns over the stability of the U.S. economic system. Germany's 10-year Bond yield is now at 2,501%. This is the lowest it has been since early March. Prices and yields are inversely related.
Polish PM urges energy companies to prioritize cheap power
The Polish energy companies should focus on providing low-cost power over maximising profits. This was the message of Prime Minister Donald Tusk, who echoed a call to repolonise the economy, which sent energy stock prices tumbling.
The Warsaw WIG Energy index, which includes a number state-controlled companies, fell by around 5.5% to 0843 GMT despite the market's overall rise.
Tusk stated at a business event that the first task of the managers of state companies is to ensure the energy security for the Polish state, as well as the families, households, and entrepreneurs in Poland, by providing the lowest possible cost energy.
Not necessarily to maximize the profits of an state-owned corporation."
Robert Maj, an analyst at Ipopema Securities, said that the energy stocks fell in response to Tusk’s comments.
Maj: "He said that now is not the time for energy firms to maximize their profits." I think investors are reacting because they could mean that tariffs for electricity sales may fall below costs of production.
(source: Reuters)