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Bloomberg News: US Trade Representative Greer says that chip export controls are not a major issue in China's talks with the US.
U.S. trade representative Jamieson Greer said in an interview with Bloomberg TV on Friday that U.S. controls on exports of semiconductor chips were not a main topic during discussions between Chinese officials and U.S. officials. These comments indicate that a breakthrough in selling Nvidia’s advanced H200 chip to China is still far off, despite Nvidia CEO Jensen Huang’s last-minute invite to U.S. president Donald Trump's Beijing visit this week. This was not the main topic of discussion during the bilateral meeting. We didn't discuss?chip export control at the meeting," Greer stated, adding that between "15 and 17" U.S. Chief Executive Officers were present at Thursday's summit between Trump and Xi Jinping. Reports claim that the U.S. has cleared 10 Chinese companies, including Alibaba Tencent, and Bytedance to purchase?H200s. However, not a single H200 has been delivered. The Trump administration approved exports of H200s to China in December, and added additional conditions in January. Greer said that China's decision to allow the import of H200 would be "sovereign?decision". "They're fluid, right? They change with time. "It depends on the threats that you perceive, what is commercially available around the world, and what Chinese technology can do," Greer said. "You want to strike a balance in terms of national security and protecting high-tech, while also ensuring that we benefit from overseas markets." These are the types of factors that were considered when deciding whether or not the Chinese would buy the H200. Chinese AI firms like DeepSeek are increasingly claiming their reliance upon domestic chips. However, U.S. curbs on chip production continue to stifle Beijing's efforts to achieve self-sufficiency at a time when domestic fabs struggle to increase output. In recent months, computing power shortages forced many Chinese AI models to restrict user access. However, Chinese policymakers worry about the deepening dependence on U.S. chip suppliers. They view this as a vulnerability in their supply chain. Former Biden administration officials and hawkish U.S. legislators have claimed that China could catch up to the U.S. on frontier AI by selling "advanced AI" chips. This would also advance China's militaristic ambitions. "They make their own decisions." Greer said that they were "very committed" to?domestic?production. They often view U.S. high-tech as a threat because, if we are ahead of the curve like we are with AI chips on some occasions, they may feel that this can hinder their own growth.
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Japan's wholesale price inflation surges due to energy shocks, which supports the case for a rate hike in June
Data released on Friday showed that Japan's wholesale price inflation increased at its fastest rate in three years in April, as the Iran War pushed up the prices of oil and chemical products. This bolsters the case for a June interest rate hike by the central bank. Data was released after a Bank of Japan policymaker called on the BOJ to raise rates "at the soonest stage possible", as rising fuel prices from the Middle East conflict stoked the price pressures. BOJ data released on Friday showed that the corporate goods price index, which'measures the prices companies charge one another for their goods and service,' rose by 4.9% from a year ago in April. This was the highest annual rise since?May 20,23. The gauge exceeded median market expectations with a 3.0% increase, and increased sharply from the 2.9% increase in March. Masato Koike is a senior economist at Sompo Institute Plus. If the BOJ does not have to act if price increases are limited to oil-related products, then there is no need to do so. If they spread to other goods, then the BOJ may have to increase rates," he added. The yen-based index of import prices jumped 17.5% from a year ago in April, the highest increase since December 2022. This is a sign that the currency's depreciation was contributing to the energy crisis by increasing corporate costs. Wholesale prices rose 2.3% in April, after an increase of 1.0% in March. Data showed that prices were rising due to the closure of the Strait of Hormuz. This is affecting oil supply for an economy that heavily relies on Middle East imports. The data revealed that the price of petroleum and coal goods rose by 5.3% in April compared to a year ago, mainly due to higher costs for jet fuel and crude oil. The price of chemical goods increased by 9.2% in September, which is the highest rate since September 2022. Naphtha prices soared 79.4%.
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Oil prices rise as fears persist of attacks on ships and seizure
Oil prices increased 'Friday, as concerns over ship attacks and seizures persisted despite Iran claiming that 30 vessels passed through the Strait of Hormuz. Meanwhile, the U.S. presidents will be meeting with the Chinese counterparts for a second round of talks on Saturday in Beijing. Brent crude oil futures rose by 60 cents or 0.57% to $106.32 a barge at 0100 GMT. U.S. West Texas intermediate futures gained 54 cents or 0.53% to $101.71. On Thursday, a ship reported to be seized by Iranians off the United Arab Emirates 'and heading for Iranian waters' was reported. Meanwhile, the White House stated that U.S. president Donald Trump and Chinese president Xi Jinping agreed on the necessity of keeping the Strait?Hormuz open. A cargo ship carrying livestock from Africa to the United Arab Emirates was also sunk in the waters near the coast of Oman on Wednesday. Iran's Revolutionary Guards reported 30 vessels have crossed the Strait of Hormuz from Wednesday evening. This is still far below the 140 vessels that would normally cross the Strait of Hormuz daily before the War, but it would be a significant increase, if confirmed. Yang An, an analyst at Haitong Futures said that the main driver for oil prices is still tight supply. He said that the oil prices fluctuated several times yesterday, but closed at or near their day's highest price. "Ships passing through the Strait eased some concerns about the market, but not enough to alter the strong trend that is driven by tight supply." Trump and Xi will meet?on a Friday, to conclude a two-day visit. In an interview with Bloomberg, U.S. trade representative Jamieson Greer stated that China is being "very pragmatic" about its involvement with Iran and it was important for China to keep the Strait of Hormuz opened. Reporting by Sam Li in Beijing and Lewis Jackson; editing by Jamie Freed
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Chile appoints new chairman for copper miner Codelco amid concerns over production and debt
The Chilean government appointed Bernardo Fontaine as the new chairman of state-run Codelco on Thursday, replacing?Maximo Pacheco. Fontaine is an economist and executive who will play a key leadership role in the newly inaugurated administration of President Jose 'Antonio' Kast, which has been critical about the miner's debts, budget overruns, and production problems. Luz Granier, Alejandro Canut and Josefina Montenegro were also appointed by the government to replace Josefina Wood and Alejandra Montenegro. Fontaine will take up his new position on May 26th, when Pacheco's four-year term ends. Kast appointed Mining Minister Daniel Mas to the board. He said that these new members would be given a "special mission" to conduct an investigation, and to perform an external audit, to resolve recent production problems. In a press release, he stated that "given the most recent preliminary information which has been revealed, our position is clear: We will launch an investigation and take, of course, all necessary actions to clarify information." He did not say what the investigation will cover. In March, industry insiders questioned whether Codelco's production surge of December 2025 was fully refined copper. Diario Financiero, a Chilean newspaper, reported this week that a preliminary audit revealed that nearly 20,000 tons of copper had been incorrectly included in the 2025 production report. Codelco, when asked about the issue,?said?that a?internal audit of its Chuquicamata Division's production for 2025 was still in progress. It would be unwise to draw any conclusions while the process is ongoing. Mas said that Codelco’s newly constituted board would also need to do a thorough financial review after budget overruns. He will also?push? for rigorous financial management. After hitting record lows between 2022-2023, Codelco has been trying to recover its own production levels in order to reach its target of 1.7 millions tons by 2030. (Reporting from Daina Beth Solon, Natalia Ramos, and Kyry Madry)
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Iraq seeks financial assistance from IMF and World Bank in response to Iran war
Iraqi officials have approached the International Monetary Fund (IMF) to secure financial assistance due to?the Middle East conflict, said a source with the IMF as well as an Iraqi official on Thursday. Sources close to the IMF say that initial discussions took place at the spring meetings of IMF and World Bank last month in Washington. Discussions are continuing about the amount of funding Iraq will need and the structure of any loan. Iraqi officials who advise on financial policy have said that Iraq has begun preliminary talks with the IMF and World Bank about a loan for the country's finances, due to a severe revenue shortfall brought on by the halting of oil exports after the?Iran war and the closing of the Strait of Hormuz. Officials said that the talks would be completed once a new government is in place. The massive U.S. and Israeli bombing campaign that began on 28 February against?Iran triggered Tehran’s closure of the Strait of Hormuz. Iraq was hard-hit by the war. Its oil exports, which represented nearly all of the government's income, were cut off due to the closing of the crucial waterway that previously carried around one-fifth the world's crude oils. IMF spokesperson Julie Kozack stated that the IMF worked with the World Bank and International Energy Agency in order to assess the impact the war had on the member countries. She added that the Fund had also been in discussions with its members, some of whom sought policy advice. She said that IMF Director Kristalina Georgieva stated the 'IMF can see demand from 12 countries of $20 billion to $50 million, but refused to provide any details as to which countries have'requested assistance. The World Bank stated that it does not usually comment on shareholder discussion prior to board approval. Iraq is the fifth largest petroleum producer in the world, and its economy is heavily dependent on oil exports. Iraq's latest financial deal with the IMF was an $3.8 billion standby arrangement that expired in July 2019. Of this amount, $1.49 billion had been drawn according to the IMF website. The website shows that Iraq owes $2.39 billion to the global lender, including $891 million under a rapid funding instrument. Reporting by Andrea Shalal, Washington, and Muayad Hamed Suadi, Baghdad. Editing by Louise Heavens and Chizu Nomiyama, and William Maclean.
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Cuban government reports that CIA director met with top officials at Havana
The Cuban government released a statement saying that a U.S. delegation led by CIA Director John Ratcliffe had met his counterpart in Cuba's Interior Ministry on Thursday. Tensions are rising over a U.S. blockade of fuel, which has deprived the island of power and fuel. Since returning to office in the United States, Donald Trump has put pressure on Cuba. He said a few days ago that both long-time enemies were "going to talk." Cuban representatives at the meeting stressed that Cuba did not pose a danger to the national security of the United States, according to the Cuban government. The statement stated that "Both sides stressed their interest in developing bilateral cooperation between law-enforcement agencies in the interests of security for both countries as well as regional security and international security." The U.S. delegation did not mention the names of the Cuban officials that met with them. A witness reported that a U.S. Government plane had been seen leaving Havana’s international airport on Thursday afternoon. The White House didn't immediately respond to an inquiry for comment. Trump has threatened that Cuba is "next" after U.S. troops captured Nicolas Maduro in January, the president of Venezuela's?longtime ally Cuba. Both countries admitted earlier this year that they were in negotiations, but the?negotiations seemed to stall amid the ongoing U.S.?fuel?blockade. On Wednesday night, Havana was awash with protests as rolling blackouts lasted for 24 hours in some parts of the city. This threatened to spoil frozen food supplies and made sleep nearly impossible for residents. (Reporting and editing by Christian Plumb, Sanjeev Mglani and Daina Beth Sola; Additional reporting and editing by Jonathan Landay & Simon Lewis; Reporting and Editing by Dave Sherwood)
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As markets wait for signals from Trump-Xi, gold falls as oil and dollar rise
Gold prices fell on Thursday as a result of rising 'oil' prices and a 'firmer dollar. This was after news broke about a sunk vessel and a snatched vessel. Investors are also looking forward to the meeting between U.S. president Donald Trump and Chinese president Xi Jinping. At 2:48 pm EDT (1848 GMT), spot gold was down by 0.4%. U.S. Gold Futures for June Delivery settled at $4,685.30, down 0.4%. The U.S. Dollar was up 0.3% making greenback-priced gold more expensive for holders other currencies. News of the sinking and seizure off the coasts of the United Arab Emirates of a ship that was headed for Iranian waters boosted oil prices. Prices had dropped earlier, after Iran's official media reported that Chinese ships had crossed the Strait of Hormuz. "What happened in the Strait today underpins oil and continues to stoke expectations of higher Fed rates for longer." It's no surprise that a stronger dollar is being seen today, especially with the hot inflation data from this week. CME Group's FedWatch tool says that the prospects of a rate cut in the United States have faded. This is due to a sharp rise in U.S. consumer and producer prices, primarily driven by energy. Bart Melek is the global head of commodity strategies at TD Securities. He said that there is a risk of a major downturn in gold if the Middle East conflict does not end. He added that energy product inventories could become constrained, leading to higher prices and inflation. Gold is often considered to be a hedge against rising inflation. However, as interest rates rise, it tends to have a negative impact on the metal. Xi also told Trump on Thursday that the trade talks were?making progress,' but warned that disagreements over Taiwan might cause a rupture in relations. However, the U.S. summary made no mention of Taiwan. The Indian government announced that it would limit the import of gold to a maximum of?100 kilograms under its scheme for advance authorization. Silver spot fell by 4.1%, to $84.36 an ounce. Platinum dropped 3.3%, to $2,066.75, while palladium was down by 3.5%, to $1,447.73. (Reporting by Ishaan Arora in Bengaluru; Editing by Paul Simao, Nick Zieminski, Diti Pujara and Aurora Ellis)
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Gold prices remain stable as markets wait for signals from Middle East and Trump-Xi meetings
The gold price remained largely unchanged on Thursday as investors focused on the latest developments in Middle East and President Xi Jinping's meeting with the U.S. At 1:01 pm EDT (1701 GMT), spot gold was down by 0.1% to $4,680.26 an ounce. U.S. Gold Futures for June Delivery fell by 0.4% to $4686.20. The U.S. Dollar was up by 0.3%, making greenback-priced gold more expensive for holders other currencies. Iran's state media reported that 30 vessels had allegedly crossed the Strait of Hormuz, despite reports of attacks in the area. Bart Melek is the global head of commodity strategies at TD Securities. He said that a downturn in gold is possible if the Middle East conflict does not end. He added that inventories and supplies of energy products may be reduced to the extent where prices increase sharply. CME Group's FedWatch tool says that the prospects of a rate cut in the United States have faded largely, following a sharp rise in U.S. consumer and producer prices for April. Gold is often considered to be a hedge against inflation, but higher interest rates can weigh down on this non-yielding material. Gold lacks a firm direction, as markets weigh lingering uncertainty in geopolitics, the economic fallout resulting from the Middle East conflict, and the hope that the Trump-Xi summit could 'help broker a resolving?, Nikos Tzabouras said, in a Tradu.com note. Xi also told Trump on Thursday that the trade talks are?making good progress,' but warned that disagreements over Taiwan might disrupt?relations. Taiwan was not mentioned in the U.S. summary. The Indian government has announced that it will cap gold imports at 100 kilograms under its scheme of advance authorization, which gives Indian exporters some exemptions. Silver spot fell by 3.6%, to $84.84 an ounce. Platinum dropped 3.1%, to $2,071.53, while palladium fell 3.5%, to $1,447.52. (Reporting by Ishaan Arora in Bengaluru; Editing by Paul Simao, Nick Zieminski and Diti Pujara)
Nigeria's NNPC plans to broaden natural gas stations for domestic use
Nigeria's NNPC stated it prepares to develop 6 compressed natural gas (CNG) service plants with local company Axxela to broaden access to alternative fuel for cars and industries after commissioning its very first plant in Lagos on Thursday.
The plan belongs to the oil- and gas-rich country's effort to lower transport expenses which escalated as fuel pump costs increased in 2015 following the elimination of costly fuel aids, angering the general public.
On Thursday, state oil company NNPC stated it commissioned a CNG station in Lagos, with capacity to provide 5.2 million requirement cubic feet (mmscf) of gas daily to serve around 3,700 cars and trucks daily, supply gas to markets and other companies.
It likewise said it has actually reached a final investment choice with Axxela on brand-new plants.
Although the elimination of the premium motor spirit ( fuel) aid has brought problems, it has actually also offered us an once-in-a-lifetime chance to develop and adopt more cost-effective, effective, and sustainable energy alternatives, Nigeria's. minister in charge of gas resources, Ekperikpe Ekpo, stated.
Nigeria has actually turned to gas as an alternative fuel after it. scrapped a popular but costly aid on fuel that has actually seen. the gas pump rate increase dramatically, angering motorists and. companies that utilize fuel to generate their own power.
The federal government hopes the switch to CNG will reduce costs and. increase clean energy usage in Africa's leading oil exporter.
The Lagos state government at Thursday's commissioning said. it will release over 2,000 brand-new CNG buses and 2,500 conversion. kits before the end of the year.
The NNPC said in August it has partnered with regional company. NIPCO Gas to accelerate the adoption of CNG for buses, automobiles and. tricycles and that it anticipated other oil marketing firms to sign up with. to improve availability.
Nigeria has the world's ninth-largest gas reserves. Cars. that run on gas are normally cleaner and better for the. environment. But gas needs to be cool or pressurised for. circulation, and the infrastructure for carrying,. processing and dispersing it would cost billions of dollars.
(source: Reuters)