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Sources say that RPT-Shanghai Exchange is looking to open up domestic nickel contracts to foreigners in this year.
Two sources familiar with the matter have confirmed that the Shanghai Futures Exchange is looking at opening its domestic nickel contract to foreign investors in this year instead of launching a new contract on its International Energy Exchange. ShFE has been exploring a more internationally-accessible nickel contract since at least 2023 as part of broader plans to build its global presence and challenge the dominance of rival the London Metal Exchange (LME). ShFE, according to industry sources, also wants to provide an alternative to LME Nickel after the trading disaster in March 2022. The LME contract had been suspended for eight consecutive days and left the industry without global benchmark pricing for the metal that is used in electric vehicle batteries and stainless steel. Two other attendees, who spoke on the condition of anonymity, said that ShFE will hold a two-day metals industry meeting in Shanghai this Thursday and Friday where nickel contract plans as well as other topics will also be discussed. The LME Asia Week, which concludes on Wednesday, is bringing together a large part of the global metals sector. Sources with knowledge stated that plans are being considered to open ShFE's existing domestic nickel contract to foreign institutional investors registered in China under the Qualified Foreign Institutional Investor Programme (QFII). QFII status allows the international market trade Chinese markets. A broker source told us that China has around 900 QFIIs. About 200-300 companies registered since September 2022 are primarily interested in commodities. In February ShFE opened a number of futures products, including stainless steel and petroleum fuel oil, to QFII Investors. When contacted by the reporter, a senior ShFE official refused to answer any questions about this topic. After hours, ShFE did't immediately answer questions sent by email. China Securities Regulatory Commission would have to approve any launch of domestic exchanges. According to a source familiar with its thinking, the commission has been encouraging exchanges to introduce international futures contracts in order to attract foreign investors. The market confidence was shaken by 2022, when the nickel price rocketed above $100,000 per metric ton. On March 8, the LME canceled all nickel trades for which the hedge fund Elliott Associates sued it. CME and ICE are also looking at cash-settled nickel derivatives, while Abaxx Technologies has launched a nickel sulphate contract this year.
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Perpetua Resources has received the final federal permit to develop Stibnite Gold Project
The U.S. Army Corps of Engineers has issued the final federal permit to Perpetua Resources for its Idaho antimony-and-gold Stibnite Project. In March, President Donald Trump used emergency powers to increase domestic production of vital minerals. This was part of an effort to counter China's near total control of this sector. The White House announced in April that it would expedite the permitting process for 10 mining projects throughout the United States as part of President Donald Trump’s efforts to increase critical minerals production. The Pentagon-backed project would be the first antimony mine in the country. Its estimated reserves are 148 million pounds, and the metal is used for bullets, tanks, flame retardants, and alloys in electric vehicle batteries. China is expected to account for almost 60% of global antimony production by 2024. The United States banned the export of the metal in December of last year. This has led to calls for increased domestic production. The project of Perpetua, which supplies copper, antimony, and other minerals, was given FAST-41 status. This is a federal initiative that launched in 2015 for streamlined approvals. "We think that the commitment of this administration to boost efficiency without compromising strict environmental standards could have a transformative impact on American mining," stated CEO Jon Cherry. The U.S. Army Corps has been involved in the interagency review of Perpetua’s Section 404 Clean Water Act permit application since 2017. It began formally evaluating Perpetua’s Section 404 Clean Water Act permit in 2023. The company stated that it will now focus on obtaining the state permits, and the project financing required to start construction. (Reporting and editing by Alan Barona in Bengaluru. Pooja Meon is based in Bengaluru.
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Treasury yields increase, dollar falls amid fiscal concerns following US downgrade
The dollar weakened on Monday as the yields of longer-dated Treasury bonds rose, amid worries about the U.S. government's debt and the tax cut bill following Moody's decision to downgrade the country's credit rating. The major U.S. stock indexes recovered early losses and ended the day in a flat or slightly higher range. Moody's Investors Service lowered the United States' sovereign rating to triple-A late on Friday night, underscoring the country's worsening fiscal outlook. A key congressional committee approved the massive tax-cutting bill of U.S. president Donald Trump on Sunday. Republicans in the U.S. House of Representatives, who currently control it, will push for the bill's passage this week. The yield on 30-year Treasury bonds reached a high of 18 months before reversing. Investors are concerned that tax bills will increase debt loads by more than expected. The 30-year bond rate rose 3.7 basis points, to 4.934%. It had previously reached 5.037% - the highest level since November 2023. The yield on the benchmark 10-year U.S. notes increased 3 basis points, to 4.469%. It had earlier reached 4.564%. What Moody's has done is more symbolic than anything. Peter Cardillo is the chief market economist of Spartan Capital Securities, a New York-based brokerage. Yes, the yields have risen in response to news reports... "But they're moving up also for other reasons," he said. "In general, the stock market (has) not really reacted all that much to Moody's' announcement. It's more of a market that has risen and is trying to consolidate recent moves. Moody's downgrade follows similar actions by Fitch and Standard & Poor's, both in 2011. Scott Bessent, the U.S. Treasury secretary, used Sunday's television interviews to dismiss this downgrade. Several Federal Reserve officials commented on the U.S. market on Monday following the downgrade. John Williams, New York Fed president, said that investors were "clearly weighing" their options at a Mortgage Bankers Association conference in New York. He said that investors still see the U.S., "including Treasuries and fixed income assets" as a "great place to invest." The Dow Jones Industrial Average rose by 137.33, or 0.32 percent, to 42.792.07. The S&P 500 gained 5.22, or 0.09 percent, to 5,963.60, and the Nasdaq Composite increased by 4.36, or 0.02 percent, to 19,215.46. On Friday, the S&P 500 posted its fifth consecutive day of gains. MSCI's global stock index rose by 1.77 points or 0.20 percent to 882.39. The pan-European STOXX 600 rose 0.13% while Europe's broad FTSEurofirst 300 rose 2.80 points or 0.13%. MSCI's broadest Asia-Pacific index outside Japan fell by 0.5%. A mixed bag of Chinese economic data revealed a struggling economy. The U.S. Dollar fell, reaching a low of more than a week against the safe haven currencies, including the yen and Swiss franc. The dollar fell 0.55% against the Japanese yen to 144.82. Trump's tariffs war has weakened consumer sentiment. Analysts will be looking at Home Depot and Target earnings this week to get an update on trends in spending. Home Depot will report Tuesday morning before the opening bell. Trump said that Walmart would be forced to raise prices because of the levies if it didn't "eat the tariffs". Raphael Bostic, Atlanta Fed president, told CNBC Monday that the central bank might only be able reduce interest rates by one quarter point for the remainder of the year due to concerns over rising inflation caused by increased import taxes. The Group of Seven Democracies' finance leaders will try to show unity this week when they meet on topics other that Trump's tariffs. These include economic security, Ukraine, and artificial intelligence collaboration. The oil price ended up slightly higher, as the Moody's downgrade was offset by signs of an impasse with Iran in U.S. nuclear talks. Brent crude futures increased 13 cents, settling at $65.54 per barrel. U.S. West Texas Intermediate crude increased 20 cents, settling at $62.69 per barrel. Gold prices rose, with spot gold rising 0.9% to $3,229.51, while U.S. futures gold settled 1.5% higher, at $3233.5.
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State AGs oppose legal shield for Carrier Global during bankruptcy of PFAS
Seven U.S. States on Monday objected against the bankruptcy plan of fire protection company Kidde-Fenwal, claiming that it improperly tries to shield its owner Carrier Global's from lawsuits relating to toxic PFAS chemical in its firefighting products. Carrier, not bankrupt itself, is trying to use Kidde-Fenwal bankruptcy to avoid its separate responsibility for suits over the "forever chemicals", in a manner that violates the U.S. Supreme Court's precedent. Carrier had previously agreed to pay Kidde-Fenwal $540 million and its creditors in a Chapter 11 plan to settle lawsuits brought by local governments, businesses and individuals who claimed that Kidde-Fenwal’s firefighting products contaminated soil and drinking water with PFAS around airports and military base bases throughout the U.S. According to two objections from the Democratic Attorneys General of New York and California, Connecticut, Delaware Maine, Vermont, Connecticut, Delaware and the District of Columbia, this deal cannot be used as a way to prevent states from suing Carrier directly for the alleged PFAS pollution. The plaintiffs cited a Supreme Court decision last year in the bankruptcy case of Purdue Pharma that severely curtailed a court's power to dismiss legal claims against entities who have not declared bankruptcy. Carrier didn't immediately respond to an inquiry for comment. Kidde-Fenwal declared bankruptcy in May 2023 after being named a defendant in over 4,400 PFAS suits over its chemical firefighting products. The first to file for bankruptcy as a result PFAS litigation was Kidde-Fenwal. However, experts believe that other companies may follow. Per- and polyfluoroalkyl chemicals, or PFAS for short, are a grouping of approximately 15,000 chemicals that have been used in hundreds consumer and commercial products, including firefighting sprays, nonstick pans and clothing, and cosmetics. Kidde-Fenwal’s bankruptcy plan doesn’t explicitly include the "non-debtor release" type of clause that was ruled unconstitutional by the Supreme Court in 2017. It characterizes PFAS liability instead as "estate claims," a type legal claim that Kidde-Fenwal may bring against its parent and that only Kidde-Fenwal bankruptcy estate is allowed to settle or litigate. The states argued Kidde-Fenwal’s plan uses "word games" in order to "obscure reality" about the settlement. This will prevent creditors from suing Carrier for PFAS contamination. The state said that Carrier is "vastly liable" for contamination which poses significant and persistent health risks to humans and the environment. New York, as an example, stated that Kidde-Fenwal chemicals contaminated soil and drinking water in approximately 35 places. According to the objection, the state has spent over $100 million on remediating the contamination. The ongoing costs are more than $3,000,000 per year. Carrier is a company that sells heating, cooling and refrigeration services. It has a $64.8 billion market capitalization. Kidde-Fenwal plans to divide Carrier's $540-million contribution, as well as future insurance recoveries, and other assets among PFAS creditor groups. Kidde-Fenwal proposes a bankruptcy plan that would give states 30% of settlement funds, local providers 30% and individuals with injury claims 22%. Smaller amounts would be reserved for firefighter's training, airports, businesses and landfills. Kidde-Fenwal intends to begin soliciting creditor votes for its Chapter 11 plan in June. Kidde-Fenwal sold its assets earlier to the private equity firm Pacific Avenue Capital Partners. In the U.S., water providers have reached settlements with large companies in their PFAS litigation. These include a $10.3-billion settlement with 3M, and a $1.1-9 billion settlement with DuPont Chemours Corteva. Kidde-Fenwal Inc., U.S. Bankruptcy Court District of Delaware No. 23-10638. 23-10638. Brian Glueckstein of Sullivan & Cromwell and Justin DeCamp from Sullivan & Cromwell are representing Kidde-Fenwal. David Molton, Brown Rudnick Click here to read more Carrier reaches $730 mln settlement over fire protection unit PFAS claims Kidde-Fenwal, a fire protection company, files for bankruptcy citing PFAS suits Are you the next defendant in the growing litigation over "forever chemicals"? EPA will roll back 'forever chemicals' rule and extend timelines. (Reporting from Dietrich Knauth, New York).
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The 'Choose France Summit' brings new investments of 20 billion Euros
The "Choose-France" business summit this year is expected to bring in 20 billion euros ($22.47billion) in new investments, said French President Emmanuel Macron. He announced projects in defence and energy, industry, as well as artificial intelligence. Macron's efforts to win over international business leaders by making the Choose France Summits at the Palace of Versailles an absolute must for the corporate elite have been credited with a change in investor perceptions of France, which was previously perceived as having a rigid, high-tax economy. Macron announced that in addition to the 20 billion euro in new investments, he also pledged 20 billion dollars in AI-focused projects at a Paris AI Summit in February. "You have delivered a lot in terms of investment in various fields, including AI, telco... green hydrogen and circular economy... This is a complete edition, where 20 billion was invested. And 20 billion in AI as a follow-up of the summit held in February," Macron said to CEOs and entrepreneurs at Versailles. The U.S. logistics company Prologis has pledged to invest 6.4 Billion Euros in four data centers in the Paris area. Meanwhile, London-based Fintech Revolut will invest 1 Billion Euros over the next 3 years to expand in France, and will also apply for a French bank licence. A similar announcement was made by the United Arab Emirates AI-focused MGX Fund. Other companies, including Amazon and Britain's Less Common Metals Limited were also expected to make an announcement in the rare earths sector. The Elysee announced that Portuguese company Tekever would build a drone manufacturing factory in the Southwest, a 100-million euro investment. Macron's government faces pressure to stop a wave job losses in the industry as trade policies of U.S. president Trump put further pressure on Europe’s faltering economy. Macron stated that "we must invest more in AI, green technology, defense, and security because we are racing to the finish line." According to EY’s European Investment Monitor (an annual survey of thousands business leaders), France has been Europe's top recipient of international investment for the last six years. Macron's advisors have used this as proof that his supply-side reforms are working. This year's edition shows that the number of projects in Europe has decreased for the second year running, while the United States saw a five-fold increase between 2023-2024. EY said this reflected the appeal the Inflation Reduction Act package of subsidy and Trump's business-friendly promises. Macron, despite the huge foreign investment into France, has not stopped French companies from investing abroad. Sanofi's plans to invest at least $20 billion in the United States to boost manufacturing angered French politicians.
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Argentina's soybean crop could suffer'significant losses" after storms
The Buenos Aires grain exchange warned on Monday that Argentina's soybean crop for 2024/25 could be affected by "significant losses" due to recent storms in the northwestern Buenos Aires Province. This may force the exchange to reduce its forecast. The exchange estimates the soybean crop to be a respectable 50 million metric tonnes, but stated in its report that heavy rains may further delay harvesting the grain which is already slow and could cause damage to plants. The exchange reported in a report on the storms' impact that 730,000 hectares (about 1.8 million acres) of soybeans are still unharvested in the province of Buenos Aires, located to the northwest. The exchange stated that "this region had already experienced the impact of rain in March," adding that due to this, threshing is 15 percentage points behind last year. "So, the new rain could cause significant losses." Argentina is the top exporter in the world of soybean oil, soybean meal and corn. In recent days, heavy rains have caused flooding across some Buenos Aires cities, with up to 400 millimeters falling on roads and fields. Locals evacuated from areas From their homes. The Buenos Aires grains exchange and the Rosario grains trade both predict that more rain will hit the affected area in the coming days. The Rosario exchange reported that "new rains will be expected next weekend, particularly on Saturday." The time taken to drain excess water can affect the extent of damage.
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A bipartisan group of US legislators introduces a bill to boost nuclear energy
On Monday, U.S. Senators from both major political parties introduced a measure to counterbalance China's and Russia's increasing influence over international nuclear energy development. Why it's important The United States is the country with the most nuclear power, but China has been developing its own reactors rapidly and Russia has made deals with countries throughout Southeast Asia. The Trump administration has been debating draft executive orders that would give it more control over the approvals for nuclear reactor projects, which are currently managed by an independent agency. The orders are not certain to reach Trump's desk but they do seek to assess the recycling of nuclear waste, which is opposed by experts on proliferation. BILL'S SPONSORS The two parties are in agreement on the need for nuclear energy, despite predictions that demand for electricity will continue to rise due to artificial intelligence data centres. The legislation is sponsored by Republican Senators Jim Risch, Mike Lee and Martin Heinrich along with Democrats Chris Coons and Martin Heinrich. Nuclear energy is almost carbon-free, and it provides well-paying jobs. The development of reactors is plagued by delays, high costs and radioactive waste. What the Bill Does The International Nuclear Energy Act will support a new office that would boost nuclear exports and finance, harmonize regulations, standardize licensing, and promote the harmonization. The act would set up a fund to finance projects that are important to national security. A biennial cabinet summit would be required to discuss safety, security, and the relationship between government and industry. KEY QUOTES Risch stated in a press release that if the U.S. does not lead the nuclear energy development, Russia or China will. He added that nuclear power gives the U.S. the "tools" it needs to compete against these authoritarian aggressors. Lee stated that "achieving American energy supremacy will require us... to streamline our nuclear trade, foster our relationship abroad, and bring our full industry weight to bear to out-compete our geopolitical rivals," he said. (Reporting and editing by Richard Chang; Timothy Gardner)
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Codelco, a Chilean lithium producer, has partnered with Rio Tinto to form a new major lithium partnership
Codelco, a Chilean state-owned miner, announced on Monday that it will be partnering with Rio Tinto, the global mining giant, for its new Maricunga Lithium project. This partnership brings a new major player to the lithium sector, which is the second largest producer in the world of this EV battery metal. After a selection procedure, Rio Tinto is now the third largest private company in Chile's Lithium sector. It joins Chile's SQM, and U.S.-based Albemarle who have been dominating production for years. Codelco, which holds a 49.99% stake in the project, said that Rio Tinto would contribute up to $900m to it. Codelco will be in charge of the rest, as it is the state miner that has been tasked to spearhead the recent push by the Chilean government into this sector. The funding will include $350m when the deal is closed, $500m when a decision on the final investment is made and $50m if commercial production can be achieved by the end 2030. Codelco announced that the board of the partnership would consist of two members nominated by Rio Tinto and three by Codelco. Daina Beth Solon is reporting.
Dollar downgraded as Treasury yields increase, dollar falls with focus on tax bill
The dollar eased, and the S&P 500 dipped on Monday as concerns over the U.S. government's debt and a tax cut bill grew following Moody's decision to downgrade the country's credit rating.
Moody's Investors Service lowered the United States' sovereign rating to triple-A late on Friday night, underscoring the country's worsening fiscal outlook.
A key congressional committee approved the massive tax-cutting bill of U.S. president Donald Trump on Sunday. Republicans in the U.S. House of Representatives, who currently control it, will push for the bill's passage this week.
Investors are concerned that tax bills will cause debt to increase more than expected. The 30-year bond rate reached 5.037%, its highest level since November 2023.
What Moody's has done is more symbolic than anything. Peter Cardillo is the chief market economist of Spartan Capital Securities, a New York-based brokerage.
"Yes, the yields are rising on news reports, and they could spike even higher. "But they're moving up also for other reasons," he said. "In general, the (stock market) is not reacting that much to Moody's." It's more of a market that has risen and is trying to consolidate recent moves.
Moody's downgrade follows similar actions by Fitch and Standard & Poor's, both in 2011.
U.S. Treasury secretary Scott Bessent gave television interviews Sunday in which he dismissed the downgrade and warned trade partners that they would be charged maximum tariffs for not offering deals "in good faith".
Bessent will attend a Group of Seven Meeting this week to continue the discussion.
The Dow Jones Industrial Average increased 50.72 points or 0.12% to 42,705.46, while the S&P 500 dropped 10.08 points or 0.17% to 5,948.43, and the Nasdaq Composite fell 54.18 points or 0.28% to 19,157.69.
On Friday, the S&P 500 posted its fifth consecutive day of gains.
MSCI's global stock index rose by 0.13 points or 0.01% to 880.75. The pan-European STOXX 600 rose 0.13% while Europe's FTSEurofirst 300 rose 2.80 points or 0.13%.
The MSCI broadest Asia-Pacific index outside Japan fell by 0.5%.
Mixed data from China showed an economy in trouble.
Trump's tariff war is affecting consumer sentiment. Analysts will be looking at Home Depot and Target earnings this week to get an update on trends in spending. Home Depot will report Tuesday morning before the opening bell.
Trump said that Walmart would be forced to raise prices because of the levies if it didn't "eat the tariffs".
The dollar fell in value, reaching a low of more than a week against the yen and other safe haven currencies, such as the Swiss franc, euro, and Swiss franc. The dollar fell 0.49% against the Japanese yen to 144.91.
U.S. Rates Not Falling So Fast
Raphael Bostic, president of the Atlanta Federal Reserve, told CNBC Monday that the central bank might only be able reduce interest rates by one quarter point for the remainder of the year due to concerns over rising inflation caused by increased import taxes.
In an interview that was published on the weekend, Christine Lagarde, President of the European Central Bank said the recent decline in the dollar reflected a lack of confidence in U.S. policy.
Spot gold increased by 0.98%, to $3.233.92 per ounce.
(source: Reuters)