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Sefcovic, EU's Sefcovic, says he has discussed steel with US officials and that the discussion is moving in a positive direction
European Trade Commissioner Maros Sefcovic stated that he and U.S. Secretary of Commerce Howard Lutnick had 'agreed' to accelerate discussions about steel derivatives on a technical level. Talks have already begun. Sefcovic told reporters that, in his opinion, both sides are moving forward on the steel issue. He said that both the United States as well as the EU were facing the same problem of massive overcapacity on the global market, without mentioning China. Sefcovic told a press conference that "we are not each other's problem" after signing an agreement on critical minerals with U.S. secretary of state Marco Rubio. "Our trade is small and it is very much focused on the specialized steel which we both require, but we are facing a large overcapacity." Sefcovic estimated that global overcapacity at 720 million tonnes, which was flooding and destroying the sector. He said that the crisis is what prompted the European Union?to nearly halve the imports of steel, and impose 50% tariffs on excess shipments in order to protect the bloc?s steel industry. Due to the rising imports, and tariffs of 50% imposed by President Donald Trump in the U.S., EU steel producers are only operating at 65% capacity. The new measures are intended to increase capacity utilization to 80%. Sefcovic told?Lutnick he had proposed that the two 'blocs' ringfence their respective steel?sectors, and to trade at favorable terms between themselves. He called this a "defensive" mechanism against steel subsidies. (Reporting and editing by Lisa Shumaker, Franklin Paul, and Andrea Shalal)
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US sanctions Chinese teapot refinery that bought Iranian oil
Trump Administration announced on Friday that it had imposed sanctions on an independent "teapot refinery" in China for?buying billions worth of Iranian crude oil while Washington and Tehran are struggling to restart peace negotiations. Treasury Department targeted Hengli Petrochemical Refinery Co., which they said was one of Iran's biggest customers for crude oil and petroleum. The Office of Foreign Assets Control of the Treasury Department said that it had also imposed sanctions against about 40 shipping firms and vessels operating as part of Iran’s shadow fleet. Last year, the Trump administration imposed sanctions against teapots Hebei Xinhai Chemical Group and Shandong Shouguang Luqing Petrochemical. This created a few hurdles for refiners. They had to receive crude and sell refined products under different names. Teapots make up about a quarter (25%) of Chinese refinery capacities. They operate with 'narrow and sometimes negative margins', and have recently been squeezed by the tepid demand at home. Some independent refiners have been deterred from purchasing Iranian oil by the U.S. sanctions that block U.S. assets and prohibit Americans from doing business. Data from Kpler's analytics firm for 2025 showed that China purchases more than 80% Iran's oil. The experts in the field of sanctions have long maintained that independent refineries, due to their limited exposure to the U.S. Financial System, are immune from the full impact of U.S. Sanctions. They say that imposing sanctions on China’s banks, which facilitate the?purchases of Iranian oil would have a greater impact on those purchases. Treasury Secretary Scott Bessent stated that the U.S. was imposing a financial "stranglehold", on the Iranian Government. Bessent stated that Treasury will continue to restrict the network of vessels, intermediaries and buyers Iran depends on to transport its oil to international markets. Teapot refiners have recently had to purchase Iranian oil at a premium to Brent oil prices after Washington temporarily waived sanctions on Iranian oil shipped at sea. This was done to encourage India to buy more oil. The U.S. allowed the waiver expire last week. Timothy Gardner and David Gaffen edited this report.
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Gold heads for first loss in five weekly weeks
Gold was up on Friday but on course for its first weekly loss in the last five week as the markets were on edge due to lingering inflation concerns and the uncertainty surrounding the U.S. - Iran war. At 01:41 pm, spot gold was up by 0.6% to $4,721.15 an ounce. ET (1741 GMT) after rising more than 1 percent earlier in the day. The price of gold is down over 2% this week. U.S. Gold Futures for June Delivery settled 0.4% higher at $4,740.90. Gold prices?fell throughout the month of March, as the U.S. - Iran war boosted the dollar and raised fears about inflation. This weighed down on the demand for gold. The conflict is at a standstill. Even though the number of military attacks by the countries involved has decreased, the Strait of Hormuz remains closed. Investors are left to fill in the gaps or react to U.S. President Donald Trump's comments, which have tempered expectations of a peace deal with threats to resume attacks. Pakistani sources confirmed that Abbas Araqchi, Iran's foreign minister, was due in Islamabad, Pakistan, on Friday, to discuss proposals to restart peace talks with United States. However, he was not expected to meet U.S. delegates. Separately Israel and Lebanon extended a ceasefire of three weeks. The market is currently in a positive net situation. "Energy prices are also falling," said Daniel Pavilonis senior market strategist at RJO?Futures. The oil prices fell on Friday but have risen this week as a result of the failure of a second round of talks between the U.S. Oil prices that are higher can cause inflation, which could lead to interest rate increases. Giovanni Staunovo, an analyst at UBS, said that gold fell (this week) as a result of the rising oil price, expectations for higher rates and yields. Benchmark 10-year ?U.S. Treasury yields rose 1.5% in the past week, increasing the cost of owning?gold. The dollar, on course for its first weekly increase in three weeks, also increased the price of bullion for other currencies. Silver spot rose by 1.4%, to $76.49 an ounce. Platinum gained 0.5%, to $2,015.98, and palladium grew 2.2%, to $1,499.75. (Reporting by Ishaan Arora in Bengaluru; Editing by Kirsten Donovan)
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Brazil's Finance Minister says Brazil wants to regulate essential minerals without tax incentives
Brazil's planned critical minerals rules don't involve new?tax?breaks. Finance Minister Dario Dario Durigan stated on Friday that the goal was to ensure national sovereignty and increase value through domestic processing. Durigan, the new minister who assumed responsibility last month, said from his office that the auction of Eco Invest, which offers blended financing to attract foreign investment, will prioritize critical minerals. Brazil is a small producer but has vast reserves of vital minerals for high-tech industries. The U.S. wants to integrate Brazilian miners into its supply chain to counterbalance China's dominance in the industry. Durigan stated that large fiscal incentives were not necessary to develop critical minerals in Brazil due to the strong global demand. He also noted that major economies already seek partnerships with Latin America's biggest economy. He said in the interview that "there will still be government engagement... but without tax incentives which are not necessary for the sector to progress." "Investment has already been?attracted, and tax breaks are not required from the Brazilian Government," he said. He added that some support via programs like Eco Invest make sense as a targeted, limited, and strategic economic subsidy. Marcio Rosa, the Development Minister, reaffirmed earlier on Friday the view that prevails within the government, which is against the creation a state-owned corporation for critical minerals. He also backed rapid regulation of the industry in discussions with Congress. VENEZUELA Durigan who attended this month's IMF/World Bank Spring Meetings held in Washington said that Brazil was active in its efforts to restore Venezuelan ties with multilateral organizations. He said that both the Trump Administration?and Asian stakeholder were interested in opening the door for Venezuela to gain access to finance to?rebuild their infrastructure. He said that Brazil's position, namely that Venezuela is an important regional player and needs to turn the page in order to regain its economic strength, was crucial. He added that "Brazilian companies will participate in the emergence of 'new investment opportunities' in Venezuela." PREDICTION - MARKETS Durigan said that the government would announce measures later on Friday to regulate prediction market, which has grown globally but operates in a grey regulatory area?in Brazil. He said that Brazil has specific rules regarding?gambling including online platforms and financial derivatives. Both of these have implications for prediction market, he added. "There are only two consequences and two outcomes," Durigan said. He stressed the need for a more clear regulatory framework to allow prediction markets in Brazil to grow. (Reporting and editing by Gabriel Araujo and Brad Haynes; Alexander Smith, Brad Haynes, and Marcela Ayres)
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US consumer confidence slumps to record lows in April; inflation expectation rise
U.S. consumer confidence fell to a new record low in April, as consumers shrugged off the ceasefire in the?war with Iran and remained focused on 'the inflation fallout of this conflict. Consumer Sentiment Index, a measure of consumer sentiment published by the University of Michigan's?Surveys?of Consumers?, fell to a record low of 49.8 in December. This was an improvement over the reading of 47.6 earlier in the month. The economists polled predicted the index to be at 48. In March, the index was 53.3. It was a decline in sentiment across all political parties and among investors in the stock exchange. The Iran War has caused disruptions in shipping through the Strait of Hormuz. This has led to a rise in oil prices and, ultimately, the price of gasoline and diesel. Other commodities such as fertilizers, aluminum and petrochemicals, which will affect consumers soon, have also risen in price. After the beginning of the war, on 28 February, Tehran closed the Strait. This week, President Donald Trump extended the ceasefire indefinitely with Iran. Joanne Hsu is the director of the Surveys of Consumers. She said that the Iran conflict seems to affect consumer opinions primarily by shocks in gasoline prices and possibly other prices. "Military and diplomatic developments which do not ease supply constraints or reduce energy prices will likely not 'buoy' consumers. GASOLINE PRICES AND DIESEL PRICE INCREASE Data from the U.S. Energy Information Administration shows that diesel prices are well above $5 per gallon. The national average retail price of gasoline has been above $4 a gallons this month. A poll conducted by /Ipsos on Friday revealed that a majority of Americans blamed Trump's Republican Party for the soaring gasoline prices. Diesel prices will likely increase the price of goods transported via road. While the correlation between consumer spending and sentiment was weak, economists expected that households, particularly those with lower incomes, would reduce their consumption. Grace Zwemmer is an economist from Oxford Economics in the United States. She said that she expects higher gas prices to slow down consumption growth. The impact of higher gas prices will primarily be felt by lower- and middle-income families, as a greater share of their total spending is spent on gasoline. In March, the survey's measure for consumer expectations of inflation in the coming year was 3.8%. This?month it jumped to 4,7%. The reading for April was higher than the levels of 2024, and well above the range between 2.3%-3.0% seen in the years leading up to the COVID-19 pandemic. Consumers' expectations of inflation over the next five-year period increased to 3.5%, up from 3.2% in last month. The survey by S&P Global showed that higher inflation expectations were added to the survey on Thursday. It showed that a measure of the prices charged by companies for their goods or services rose in April to its highest level in almost four years, strengthening the expectations in the financial markets. Heather Long, Chief Economist at Navy Federal Credit Union, said that "more pain" will be felt as higher transportation costs for food, appliances and toys are passed on to consumers. "Sentiment will not improve until the Strait of Hormuz opens and there is an end to the war." Reporting by Lucia Mutikani, Washington; Editing and proofreading by Chizu Nomiyama & Matthew Lewis
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US and EU Deepen Cooperation on Critical Minerals with an Eye to Broader Agreement
As part of an 'overall Western push to loosen China’s grip on materials vital to advanced manufacturing, the U.S. & European Union deepened their cooperation?on critical mineral?on Friday. U.S. Secretary Marco Rubio signed a Memorandum of Understanding with European Union Trade Commissioner Maros Sefcovic for a partnership to produce and secure critical minerals. Rubio didn't mention China, but said that the preliminary agreement reached with Brussels showed that Western allies are becoming more aware of the importance of supply chain and minerals to their economic success. China has used geo-economic pressure to 'chokehold' the processing of minerals. It has sometimes curtailed exports, lowered prices, and undermined other countries ability to diversify their sources of materials for semiconductors, electric cars, and advanced weapons. "The concentration of these resources in one or two locations is unacceptable. Before signing the memo, Rubio stated that we need diversity in our supply chain. U.S. trade representative Jamieson Greer will meet separately with Sefcovic on Friday. She announced a separate plan to "coordinate" trade policies for critical minerals. This is to address the non-market policies that they call have distorted critical mineral supply chains. Greer stated that Washington and Brussels will?explore ways to strengthen critical domestic minerals industries and downstream sector critical for industrial competitiveness, by using trade measures such as border-adjusted pricing floors. Sefcovic, who spoke to reporters at the State Department, said that the agreements will strengthen the transatlantic relationships and accelerate their work towards their shared goals. "I completely agree with Mr. Rubio that the real test now will be the implementation of this project." How can we turn these agreements that we sign into tangible, concrete projects for our business operators?" 'PERVASIVE -NON-MARKET POLICIES and PRACTICES" Washington and Brussels announced their intention to develop an Action Plan in February, when U.S. vice president JD Vance revealed plans to create a preferred trade bloc for essential minerals with coordinated price floors. Washington has already signed similar plans of action with Japan and Mexico. According to the U.S./EU Action Plan, it was important to?address?pervasive nonmarket policies and practices that have left critical mineral supply chains in market-oriented countries vulnerable to a variety of disruptions including economic coercion. The plan stated that the longer-range vision was to develop a plurilateral partnership with like-minded partners in order to boost supply chain resilience for critical minerals. It said that the U.S. will be discussing various mechanisms and measures, including coordinated trade policies, mechanisms based on benchmark prices, and price gap subsidies or offtake agreements. The parties also agreed to explore other possible measures including standards for mining and processing of critical minerals, trade or recycling in these minerals, technical and regulatory co-operation, investment promotion and screening, and coordinated rapid responses to prevent disruptions or crises. It said that stockpiling is another measure. Reporting by Andrea Shalal, Simon Lewis and Chizu Nomiyama; editing by Paul Simao and Chizu Simao
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Merz offers sanctions relief in Iran peace deal; other EU leaders cautious
On Friday, German Chancellor Friedrich Merz said that the European Union could ease sanctions against Tehran as part a comprehensive deal that would end the war in Iran. However, other EU leaders struck a more cautious tone. In response to Iran's human rights violations, its nuclear activities, and its military support of Russia, the 27-nation EU imposed sanctions against Iran over the past few years. These included travel bans, asset freezes, and travel restrictions for senior officials. U.S. officials suggest that a comprehensive agreement?covering Iran’s nuclear and missile programs and the reopening of Strait of Hormuz, could bring about a lasting end to U.S. and Israeli war with Tehran beyond the current ceasefire. Merz, after an EU summit in Cyprus, said that the bloc would gradually ease sanctions against Iran if a comprehensive deal was reached. European leaders are largely absent from the current Middle East conflict. But some European officials see the EU's sanctions as an opportunity to get involved in a diplomatic resolution. Merz told journalists after the Nicosia Summit that "the easing of sanctions could be part of a broader process". He said that no one had objected to the summit's deliberations. "It's, in a sense, part of our contribution to this process, and hopefully lead to a lasting ceasefire." After the summit's conclusion, European Council President Antonio Costa told a press briefing: "It is too early to discuss any type of sanctions." Ursula von der Leyen, President of the European Commission, said that sanctions could only be lifted after Iran showed clear signs of a fundamental change in its course. She said at the same press conference that "we believe sanctions relief should be contingent on verification of deescalation and progress in?the international efforts to contain its nuclear threat?, as well as a change in?the repression against its own people." Reporting by Bart Meijer; writing by Ingrid Melander; editing by Hugh Lawson.
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Gold still in the lead for first decline week in five
Gold was up on Friday, but on course for its first weekly loss in a period of five weeks. Markets were on edge due to inflation fears and the uncertainty surrounding the U.S. - Iran war. At 11:01 am, spot gold was up by 0.7% to $4,724.19 an ounce. ET (1501 GMT), after rising more than 1 percent earlier in the day, is down over 2% this week. U.S. gold futures for June delivery rose 0.4% ?to $4,741.30. Gold prices fell throughout the month of March, as the U.S. - Iran war strengthened the dollar. This also fueled fears about higher inflation and reduced demand for the precious metal. The conflict is at a standstill. Military strikes have decreased, but the Strait of Ormuz remains closed. Investors are left to fill in the gaps or react to Donald Trump's comments, which have tempered expectations of a peace deal with threats to resume the conflict. Iran's Foreign Minister Abbas Araqchi, who was due in Pakistani capital Islamabad to discuss proposals to restart peace talks with the United States on Friday, was not expected to meet U.S. negotiating teams, according to Pakistani government officials. Separately Israel and Lebanon extended a ceasefire of three weeks. The market is currently in a positive net situation. "Energy prices are also falling," said Daniel Pavilonis senior market strategist at RJO Futures. The oil prices fell on Friday but have risen this week as a result of the failure of a second round of talks between Iran and the U.S., and Iran's display of control over the Strait of Hormuz. Increased oil prices can cause inflation and higher interest rates. Giovanni Staunovo, an analyst at UBS, said that gold fell (this week). This was because the oil price rose, and expectations for higher rates, the dollars, and yields were all correlated. The benchmark 10-year U.S. Treasury rate rose 1.6% in the past week, increasing the cost of owning 'gold. Meanwhile, the dollar is on course to make its first weekly increase in three weeks, making gold more expensive for other currency holders. Silver spot rose 0.6% per ounce to $75.86, platinum gained 0.7% to 2,019.53 dollars and palladium gained a 2.1% gain to $1,499.41. (Reporting by Ishaan Arora in Bengaluru; Editing by Kirsten Donovan)
Nuclear reactor manufacturer X-Energy is valued at $11.9 Billion in stellar Nasdaq debut
X-Energy's shares surged by 30.9% on their Nasdaq debut, valuing the company at $11.9 billion. This shows a strong interest in a new generation of energy developers who are able to create carbon-free power that could fuel artificial intelligence boom.
Amazon-backed nuclear reactor developer raised a total of $1.02bn in its initial public offering (IPO) on Thursday. It sold 44.3 million shares at $23 each. The stock opened at 30.11.
The listing is a crucial capital milestone for X-Energy, as it races to deploy "Xe-100", small modular reactors. Industry analysts view this as a solution that will allow the first commercial SMRs to reach the U.S. grid before the end of the decade.
X-Energy's debut is backed by significant tailwinds from the power sector as tech giants and data center developers turn to advanced nuclear energy for powering energy-intensive artificial-intelligence infrastructure, while also meeting 24/7 carbon-free goals.
The developers of nuclear reactors can offer reliability solar and wind, which are hampered by their intermittency, cannot match.
X-Energy CEO Clay Sell stated that being a publicly traded company provided a number of benefits. These included transparency with customers and investors, equity for employees to be rewarded, and the opportunity to support and invest in its supply chain while it grows its business 'in the next years. "We wanted to use this opportunity to build up a bigger balance sheet, which allows us to reduce the risk in getting to scale."
TAILWINDS AND BACKERS
The SMRs have been designed to be smaller and more cost-effective than large-scale traditional reactors. These can take many years to construct and are prone to budget overspends.
X-Energy has developed its Xe-100 nuclear reactor which uses helium instead of water as a cooling agent. It has also established a nuclear fuel company that will supply fuel for the reactors sold on a revenue-recurring basis. Sell stated that this distinguishes it from its rivals in providing consistent revenue over the long term, attracting significant interest from investors.
The company was founded in 2009. Its customers include Amazon, the specialty chemicals group Dow, and Centrica, which is a UK-based energy services provider with a 20% share in its nuclear reactor fleet.
X-Energy originally planned to 'go public' through a merger in 2023 with a blank-check company backed by Ares Management, but later canceled those plans citing unfavorable?market?conditions.
The increased interest in this sector can be seen in the fact that X-Energy has closed two funding rounds worth $700 million, each, since the start of last year. These funds were backed by major investors such as Amazon, Jane Street and Ares Management Funds.
IPO MARKET VOLATILITY
Recent activity in the U.S. initial public offering market has increased. In the last month, several big names have filed to become public in the U.S., including Elon Musk's SpaceX. This suggests that there will be a steady stream of new listings through 2026.
Investors and public companies were in a waiting and watching mode at the start of the year, due to the volatility in equity markets, and the rising tensions in Middle East.
(source: Reuters)