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Commonwealth LNG signs 20 year supply agreement with major Asian buyer
Commonwealth LNG, a U.S.-based energy company, announced on Monday that it had signed a Sale and Purchase Agreement (SPA) with a major Asian oil and gas company. Commonwealth announced that the buyer would purchase 1 million tonnes of liquefied gas per year (MTPA) from Commonwealth's proposed 9.5-MTPA Cameron, Louisiana facility. Commonwealth did not identify the buyer, but stated that it is one of world's largest energy companies with oil and natural gas operations and one of the biggest global suppliers of LNG. Last week it was reported that Malaysian state oil and gas company Petroliam Nasional Berhad (known as Petronas) was in discussions with Commonwealth to purchase LNG. This offtake agreement is an important milestone as Commonwealth works towards a final investment this year, and the first offtake in 2029. Ben Dell, managing director of energy investment company Kimmeridge and Commonwealth chairman said: Commonwealth expects that the first phase of development will generate more than $11 Billion in investment for Louisiana, and an estimated $3.5 Billion in export revenue. Commonwealth stated that the project will employ approximately 2,000 workers during peak construction, and about 275 when the facility starts operations in late 2029. Commonwealth is owned Kimmeridge Kimmeridge SoTex Holdco. Commonwealth stated that the SPA will only become effective once all customary conditions are met, including a final investment decision affirmative on the project.
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Enea's preliminary Q1 profit increases 13% due to mining and distribution gains
Polish utility Enea has reported an increase in preliminary net profit for the first quarter, thanks to stronger performances from its mining and distribution segment. The company reported on Monday that the net profit for the quarter increased by 13%, to 1.05 billion Zlotys ($278.40 millions), compared with the same period a year ago. The polled analysts expected a quarterly net profit of 1.02 billion zlotys. The EBITDA (earnings before taxes, depreciation and amortization) increased to 1.94 billion Zlotys. Mining contributed 389 million Zlotys while the distribution segment contributed 744 million Zlotys. Enea stated that higher mining EBITDA was due to higher revenues, despite lower average coal prices, despite higher coal volumes. Enea, Poland’s third largest power utility by capitalization, faces pressure due to falling profits in its coal-fired generation fleet as renewables take a greater share of the country's energy mix. According to the energy policy think-tank Forum Energii, Poland will reduce its reliance upon coal. In 2024, coal is expected to account for 57.1% or its electricity production. The utility will release its first-quarter full results on 20 May. ($1 = 3,7715 zlotys). (Reporting and editing by Tomaszjanowski)
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Oil prices drop while bond yields increase and stocks fall
MSCI's global equity index fell on Monday. Oil prices dropped on the prospect that production would increase. Taiwan's dollar also hit its highest level in almost three years against U.S. dollars, marking the beginning of a busy central bank week. The yields on U.S. Treasuries rose following data showing that the U.S. Services sector grew in April, boosted by higher orders. The price paid by companies for goods and services has reached its highest level in over two years. This indicates that tariffs have contributed to the inflationary pressures. The gold price rose, boosted by a weaker dollar and demand for safe havens ahead of the U.S. Federal Reserve’s rate policy announcement due later this week. The MSCI index of global stocks fell by 0.55 points or 0.06% to 848.70. The public holidays in Britain, China and Japan slowed down the overall trading. The pan-European STOXX 600 rose by 0.2%. Wall Street saw all three major indices gain some ground but the S&P 500, after nine days of gains, was headed for its first drop. The uncertainty over President Trump's policies on trade was partly to blame. He announced a tariff of 100% on films produced outside the U.S., but provided little information on how it would be implemented. Adam Sarhan is the chief executive officer of 50 Park Investments, a Florida-based investment firm. On Monday, the movie tariffs caused shares of video streaming providers such as Netflix, Paramount Global and Netflix to fall. Sarhan stated that investors are worried more industries may be targeted "if they wake up and see another 100% or a 200% tax on some other important industry to our economy." Trump said that on Sunday, the United States met with many countries including China about trade, and that his priority was to get a fair deal with China. In recent days, optimism about a possible de-escalation in trade tensions between China and the U.S. has helped boost markets. European shares are trading at levels just below those seen before Trump’s major tariff announcement on April 2, which shook markets. At 11:00 am on Wall Street, the Dow Jones Industrial Average grew 58.66, or 0.14 %, to 41.376.72, while the S&P500 fell 18.49, or 0.33 %, to 5,668.18, and the Nasdaq Composite dropped 89.72, or 0.50 %, to 17,888.23. Buffett's Berkshire Hathaway Class B shares also fell sharply after Buffett announced at the weekend that he would step down as CEO. Oil prices dropped more than 2% on energy markets after OPEC+ announced over the weekend that it would increase oil production even more. This sparked investor concern about more oil supply at a time when demand outlook is uncertain. U.S. crude dropped 2.81%, to $56.66 per barrel. Brent was down to $59.75 a barrel on the same day. The Taiwan dollar has seen a second session of strong gains against the U.S. Dollar, which reached a low of 28,815 and last traded at 28,990. The increase in the Taiwanese currency has fueled speculation that Asian currencies will be revalued to gain concessions from the United States. Taiwan's President Lai Ching Te on Monday urged people to not spread false stories about the United States and foreign exchange rate negotiations. The dollar index fell by 0.24%, to 99.64, measuring the U.S. Dollar against a basket major currencies, including the yen, the euro and other major currencies. The dollar fell 0.83% against the Japanese yen to 143.72. The yield on the benchmark 10-year U.S. Treasury notes increased 2.3 basis points from Friday's close to 4.343%. The yield on the 2-year bond, which is usually in line with expectations of interest rates for the Federal Reserve (Federal Reserve), rose by 0.5 basis points, to 3.845% from 3.84% at Friday's close. Spot gold increased by 2.3%, to $3,314.59 per ounce. U.S. Gold Futures increased 2.52% to $3313.20 per ounce.
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Trump's trade tariffs and threats
The President of the United States, Donald Trump stated on Sunday that he was most concerned about securing a fair deal with China after his tariff policy had shook the consumer and business confidence around the world and caused a contraction in U.S. economy during the first quarter. After the U.S. government held a series of meetings with its trading partners following Trump's April 2 announcement, there were signs of a possible de-escalation of the trade war. 10% Discount On most countries, and suspend higher levies for 90 days on many trading partners. On July 8, the duties will now be imposed. He also levied 25% on autos and steel, and 25% on imports of Canada and Mexico, and 145% on China. In his latest move Trump imposed a Get 100% Discount On movies made outside of the United States that are sent to the country. Here's a summary of Trump’s trade-related actions and threats to date. BROAD TARIFFS Trump's vision is based on a gradual rollout of tariffs that will apply to all U.S. imported goods. Trump's economics team was tasked with developing plans to impose reciprocal tariffs against every country that taxes U.S. Imports. They also had to address non-tariff barriers, such as vehicle safety regulations that exclude U.S. automobiles as well as value added taxes that raise their price. Specific COUNTRIES Trump's tariff proposal targets several key trading partners. MEXICO AND CANADA : Mexico and Canada were the two largest trading partners of the U.S. from 2024 to November. Trump's new tariffs of 25% on imports from Mexico, Canada and the European Union took effect on 4 March as a response to migration and fentanyl. Tariffs were imposed on energy imports from Canada and Mexico, as well as on the majority of goods imported. Canada exports mainly crude oil, other energy products and cars and auto components within the North American automotive manufacturing chain. Mexico exports a variety of goods to the U.S., including industrial and automotive products. Canada retaliated with 25% tariffs against US imports worth C$30 billion (21,13 billion dollars), including orange juice and peanut butter. Other products include beer, coffee, motorcycles, appliances, and motorbikes. The Canadian government said that it will impose additional duties on C$125billion of U.S. products if Trump's Tariffs are still in effect in 21 days. This could include vehicles, steel and aircraft, as well as beef and pork. U.S. commerce secretary Howard Lutnick stated that U.S. officials could still work out a partial solution with the two neighboring countries, and added that they need to do more in the fentanyl arena. In response to Trump's tariffs on steel and aluminum, Canada announced that it would impose retaliatory duties of C$29.8 Billion ($20 Billion) on U.S. imports. The two countries are exempted from the "Liberation Day", announced on April 2 tariffs, but they face a separate 25% tariff on auto imports. Canada has asked the WTO to consult with the U.S. about its import duties on steel and aluminum products as well as levies placed on Canadian cars and parts. CHINA: Trump imposed 10% tariffs on all Chinese imports to the U.S. effective February 4, after repeatedly warning Beijing that it was not doing enough to stop the flow of illegal drugs into the U.S. On March 4, he imposed another 10% tariff on Chinese products. China announced additional tariffs between 10% and 15% on some U.S. exports starting March 10, as well as a number of new restrictions on exports for certain U.S. entities. It then complained to the WTO about the U.S. Tariffs. Trump increased the tariffs on China by 34% in April, making the total to 54%. China responded with a 34% duty on all U.S. products. Trump replied that the U.S. will impose an extra 50% tariff on China, if Beijing doesn't withdraw its retaliatory duties on the U.S. and said "all discussions with China regarding their requested meetings with the us will be terminated." Washington's new round of tariffs raised duties on China to 145%. Beijing then increased levies against U.S. products by 125% as a result. Trump has said that the EU, and other countries, have alarming trade surpluses against the U.S. He said that the products of the other countries will be subject to tariffs, or he would demand they purchase more oil and natural gas from the U.S. Steel, aluminum, and cars will be subject to import tariffs of 25%, while other goods will face tariffs of up to 20%, starting April 9. Pharmaceuticals are among the most vulnerable industries, since U.S. companies such as Johnson & Johnson, Pfizer, and others have large facilities in Ireland. Ireland is also a leading exporter of medical equipment. The European Union announced on April 7 that it had offered to offer a "zero for zero" tariff deal in order to avoid a trade conflict. EU ministers agreed to prioritise negotiations and to strike back with targeted countermeasures the following week. In response to Trump's metals duties, the EU announced on March 12 that it would begin imposing counter-tariffs next month on goods worth 26 billion euros (28 billion dollars) from the United States. As a result of the U.S. auto and wider tariffs, the EU is expected to release a more comprehensive package of countermeasures at the end of April. Trump announced on March 13 that he would slap 200% tariffs on European wines and spirits as a response to EU plans to impose tariffs next month on American whiskey, among other products. PRODUCTS AUTOS: Trump announced a 25% tariff for imported cars and light truck on March 26. The 25% tax would be added to previous duties on imported finished vehicles beginning on April 3. On April 29, he issued a couple of orders that aimed to reduce the impact of his auto tariffs by combining credits with relief from other levys on materials. The Republican President has given automakers two years to increase the percentage of domestic components used in U.S.-built vehicles. Metals: On March 12th, Trump raised tariffs for all imports of steel and aluminum to 25% and extended duties to hundreds downstream products. These include everything from nuts and bolts, to bulldozers blades, to soda cans. More than half of the U.S.'s aluminum and steel imports come from Canada, Mexico, and Brazil. Trump ordered on February 25, a new investigation into the possibility of new tariffs on imports of copper to rebuild U.S. manufacturing of this metal, which is critical for electric vehicles, military equipment, semiconductors, and a variety of consumer goods. Just over half of the refined copper that is consumed in the U.S. each year is produced domestically. SEMICONDUCTORS : Trump stated that tariffs would start at "25% or higher" and would increase substantially over a period of one year. He did not, however, specify the date when they would be implemented. Taiwan Semiconductor Manufacturing Co., the largest contract chipmaker in the world, produces semiconductors for Nvidia and Apple, among other U.S. customers. In 2024, it will generate 70% of its revenues from North American clients. LUMBER: On March 1, Trump ordered a new investigation into trade that could add more tariffs to imported lumber. This would be in addition to the existing duties on Canadian Softwood Lumber and 25% tariffs for all Canadian and Mexican products. ALCOHOL: Trump threatened on March 13 to slap 200% tariffs on wine, cognac, and other alcohol imported from Europe in response to an EU plan to impose tariffs American whiskey and other products. This is itself a retaliation for Trump's 25% tariffs that went into effect on steel and aluminium imports the day before. PHARMACEUTICALS - While Trump's "Liberation Day' announcement spared the pharmaceutical sector from reciprocal duties, the president said that duties were "under review." He warned that the tariffs could be "at a new level you haven't seen before." ELECTRONICS - Trump exempted smartphones, computers, and other electronics, mostly from China, from the steep tariffs. This was a relief to major technology companies such as Apple, Dell Technologies, and other importers. This move exempts certain electronics from Trump's baseline 10% tariffs on most goods imported from countries other than China.
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In northeast Nigeria, armed bandits kill 19 and rustle cattle
Police and residents in Bauchi, north-east Nigeria, said that at least 19 people had been killed in an ambush suspected to be carried out by bandits and a livestock raid. In a press release, the Bauchi Police Command said that an ambush took place in Gwana District early Sunday morning. Police said that civilians from nearby villages were also killed as they fled the attack. In a statement, Sani-Omolori Aliyu, the Bauchi Police Commissioner said that he had dispatched a team of tactical operational teams to the scene where they recovered the bodies of the casualties. In recent years, gangs of heavily-armed men known as bandits have caused havoc in northwest Nigeria, kidnapping and killing thousands. They also make it dangerous to travel on the road or farm. Ibrahim Hussaini is an eyewitness who said that a gunfight ensued between the security and bandits, which resulted in multiple deaths amongst the vigilantes and residents. Mohammed Umar, an Alkaleri local council member who lives in Gwana told us by phone that the attackers had rumbled a number of sheep and cattle from the area after they overpowered the local security team. Reporting by Ahmed Kingimi, Maiduguri. Writing by Elisha Gbogbo. Editing by Ros Russel.
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Peabody may exit Anglo American's assets deal over damaged coal mine
Peabody Energy announced on Monday that if it is not satisfied with the resolution of issues surrounding Anglo American's Moranbah North Mine, then they may terminate their pending agreement to purchase some Australian steelmaking coal assets from this British mining company. Peabody shares rose over 4% at the opening of trading. An underground fire at Anglo American’s Moranbah North Coal Mine, located in Queensland, Australia's Bowen Basin, has caused the suspension of production. The assets agreement signed by the two companies last year includes the mine. Peabody has informed Anglo American that it has sent a Material Adverse Change notice (MAC). A MAC clause is a negative event that occurs between the time of signing a contract and the closing date. This could allow the buyer to cancel the deal. In a press release, Peabody CEO Jim Grech stated that "a substantial portion of the acquisition price was associated with Moranbah North. However, there is no timetable known for the resumption of longwall production." Peabody has said that it could walk away from the agreement if issues at the mine are not resolved in the time frame specified by the acquisition agreements. Anglo American responded by saying that it did not consider the production stoppage to be a material adverse change in its agreement with Peabody. Anglo said that the company would continue to work with Peabody in order to meet the remaining conditions necessary to complete the transaction. Jefferies analysts stated in a report that they expect the Monday development to "significantly delay" the closing of the deal and may even affect "the likelihood of this transaction ever going through".
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Rosatom, the Russian nuclear company, has sued Finnish companies for $2.8 billion over a nuclear plant contract
Court documents and Rosatom’s statement indicate that Rosatom filed a lawsuit against Finland’s Fortum and Outokumpu in Moscow, claiming 227,8 billion roubles (2.8 billion dollars) as compensation for losses resulting from the termination of the contract for the Hanhikivi-1 Nuclear Power Plant in Finland. Rosatom, which announced its intention to seek compensation on Monday, is seeking compensation "for losses caused by the unlawful termination" of the EPC contract for the construction and operation of the nuclear power station, as well as "violations of shareholder agreements, fuel supply contracts, and refusal to repay loan". The contract for the construction of a 1.2 gigawatt power plant, with estimated investments between 6.5-7 billion euro was signed in 2013. However, in May 2022 before construction began, the Finnish side cancelled it. The decision was made due to significant delays, geopolitical risk from Russia's invasion in Ukraine and doubts over the feasibility of the project. Fennovoima is a consortium of Finnish investors, including Outokumpu and Fortum, which owns two-thirds of the company. The consortium had filed an international arbitration seeking to recover 1.7 billion euro in advance payments. Rosatom has filed counterclaims totaling 3 billion euros. Arbitration is being conducted in international courts. Fortum, a major investor in Russia's Energy Sector, lost its Russian assets in 2023 when Russia took control of seven thermal power plants and a joint venture portfolio of wind and Solar Plants under a presidential decree. (Reporting and writing by Anastasiyalyrchikova, Editing and editing by David Evans).
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Gold gains due to dollar weakness and safe-haven demand
Gold prices rose over 2% Monday due to a weaker US dollar and demand for safe-haven assets, as the market awaits the Federal Reserve's policy announcement later this week. At 9:44, spot gold rose 2.3% to $3.315.62 per ounce. ET (1344 GMT). U.S. Gold futures rose 2.5% to $3324.50. Dollar index falls 0.5% making gold less expensive for other currency holders. On Sunday, U.S. president Donald Trump announced a tariff of 100% on films produced abroad. This sparked concerns about the possible fallout from a global trade conflict. Jim Wyckoff is a senior analyst with Kitco Metals. He said, "We're seeing a continual flow of safe haven demand that keeps gold prices high. Prices will trade above $3,000 at least in near-term." "I don’t think there will be any changes in interest rates at this meeting, but we'll watch it closely to see if they are leaning towards any particular direction." Investors are waiting for Fed Chair Jerome Powell to make his comments on Wednesday in order to gain insight into the direction of interest rates. Since December, the Fed's policy rate has been in a range of 4.25% to 4.50%. This meeting is expected to see the Fed leave rates unchanged, but this may be the final time that the outcome will be so clear-cut with Trump's trade tariffs casting uncertainty on the economy outlook. Gold has reached multiple record highs this year and is expected to continue its upward trend in the future. Goldman Sachs believes that gold will continue to outperform silver, but notes that due to the strong correlation between flows, a renewed demand for silver in 2025 is likely to boost its prices as well. Spot silver increased 1.3% to 32.39 dollars an ounce. Platinum rose 0.4% to $963.76. Palladium fell 0.7% to $947.15. Reporting by Ashitha and Sarah Shivaprasad from Bengaluru. Mark Potter edited the article.
Dow goes beyond 40,000, world stocks hit record amid rate cut hopes
The Dow Jones commercial average crossed the 40,000 level on Thursday for the very first time and a world stock index scored a 3rd straight record intraday high in the middle of U.S. rate of interest cut hopes and strong incomes before stocks turned primarily flat in afternoon trading.
Data on Wednesday revealed cooling customer price inflation, although that was balanced out on Thursday by news that U.S. jobless claims fell in the latest week and by figures showing U.S. import costs increased 0.9% last month.
That data boosted U.S. Treasury yields and the dollar.
The S&P 500 and Nasdaq also hit record highs in early New York trading and were little bit altered by afternoon.
Shares of Walmart jumped 7% after the retail giant raised its fiscal 2025 sales and revenue forecast.
The Dow Jones Industrial Average rose 13.70 points, or 0.03%, to 39,921.54, after earlier breaching the 40,000 level. The S&P 500 lost 2.01 points, or 0.04%, to 5,306.24 and the Nasdaq Composite lost 17.50 points, or 0.10%, to 16,725.09.
What (the Dow hitting 40,000) implies is that despite the concerns about inflation and customer belief, the business in the Dow, which represent a cross section of our economy, continue to march higher on much better profits and more powerful assistance, stated Quincy Krosby, primary global strategist at LPL Financial in Charlotte, North Carolina.
MSCI's gauge of stocks throughout the world increased 1.14 points, or 0.14%, to 794.91, after striking a third straight record intraday high. The STOXX 600 index fell 0.21%.
Overnight in Asia, Chinese and Hong Kong residential or commercial property shares had likewise rallied after reports that Beijing was considering a plan for local governments to buy up millions of unsold homes across the nation.
The dollar index, which measures the US currency against a basket of currencies including the yen and the euro, gained 0.26% at 104.47, with the euro down 0.14% at $ 1.0867.
Versus the Japanese yen, the dollar enhanced 0.26% at 155.27.
Data on Thursday revealed the variety of Americans filing new claims for welfare fell 10,000 to a seasonally adjusted 222,000 in the current week, showing a still-strong labor market.
Benchmark 10-year yields were last up 2.1 basis points to 4.377%, after earlier being up to 4.313%, the most affordable since April 5.
U.S. crude got 60 cents to settle at $79.23 a. barrel and Brent increased 52 cents to settle at $83.27.
Area gold fell 0.1% to $2,383.22 per ounce as of 1645. GMT, after striking its greatest because April 19 earlier in the. session. Bullion rose more than 1% on Wednesday.
(source: Reuters)