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Japan steel groups are seeking reforms to prevent tariff evasion, as China exports soar.
Japanese steel lobby groups have demanded early measures to stop the evasion and avoidance of anti-dumping duties aimed at protecting the domestic industry from unfair imports. This move coincides with record steel exports by China, the largest producer in the world, which have sparked protectionist reactions around the globe. Since January of last year, almost 40 countries have launched anti-dumping investigations. The Japan Iron and Steel Federation and other four industry groups have said that swift action is required as countries like China try to avoid antidumping tariffs by routing their exports through a third country or performing minimal processing in order to evade duty. Japan launched a recent anti-dumping probe into hot-dip-galvanized steel imported from China, South Korea and Taiwan. This follows a similar probe that was started in July into stainless steel cold-rolled sheets and strips with nickel-based, imported from China, Taiwan and Taiwan. Takanari Yamashita is the managing director of Japan's steel federation. He told reporters that even if antidumping measures were imposed, their effectiveness would be "significantly undermined" if they weren't taken to prevent circumvention. He said that he was not pursuing protectionism, but rather strengthening the anti-dumping system to ensure fair competition and ensuring fair competition. According to the Federation, 18 of Group of Twenty nations (G20), have already implemented anti-circumvention measures, leaving Japan and Indonesia as the only two countries without these measures. If Japan wants to combat circumvention it will have to launch a brand new anti-dumping probe. Industry groups urge the government, for this reason to separate the existing anti-dumping tariffs from the tax rules under the planned tax reform that will begin the next fiscal period on April 1, 2019. The group also calls for the hiring of more investigators to conduct trade investigations and improvements in the system. (Reporting and editing by Yuka Obabayashi.
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After Geneva's failure, the US takes a tough stance on plastic pollution.
The failure of the sixth round of U.N. discussions on Friday to curb plastic production has dampened hopes for tackling this major source of pollution. Many supporters of restrictions are pessimistic that a global agreement will be reached during the Trump Administration. Participants said that a three-year push for a legally binding treaty to reduce plastic pollution, which chokes the oceans and damages human health, now seems to be drifting. Many states and activists blamed the failure of oil producers, including the United States. They said that the United States had hardened their long-held views and encouraged others to reject limits on new plastic production which would have curtailed output of polymers. Debbra Cisneros is a Panamanian negotiator who told us that the United States was less open in the previous rounds under Joe Biden’s administration. "This time, they just didn't want anything." "It was difficult because they were always against us on each of the key provisions," she said after the 11-day negotiations. The anti-plastic campaigners did not expect Washington to change its position after President Donald Trump signed in February an executive order encouraging the purchase of plastic drinking straws by consumers. Bjorn Bealer, International Coordinator of International Pollutants Elimination Network, a global network consisting of more than 600 public interest NGOs, said: "The mentality has changed, and they are looking to extract even more oil and natural gas from the ground." The U.S. State Department didn't immediately respond to an inquiry about its position and role in the negotiations. John Thompson, the U.S. delegates to the talks, declined to answer questions about its outcome. Washington expressed concern that the new regulations could raise the cost of all plastics. A spokesperson for the State Department said previously that each party must take actions according to their national context. Trump's administration has also reversed a number of U.S. environmental and climate policies, which it claims place an excessive burden on the national industry. Washington also showed its strength in the talks on another global environmental accord earlier this week when it threatened to take action against states that supported a proposal intended to reduce shipping emissions. Production limits are crucial for a coalition of 100+ countries looking to reach an ambitious agreement in Geneva. Sivendra Michael, Fiji's delegate, compared excluding this clause to "sweeping the floor while not turning off the water." The World Wildlife Fund (WWF), said that for every month of delay, nearly a half-million tons of plastic waste are accumulated - some of it washing up on beaches in island states. "CONSENSUS IS DEAD" Some participants blamed the organizers as well, the International Negotiating Committee Inc. (INC), an U.N.-established organization supported by the U.N. Environment Programme (UNEP). The delegates were able to laugh and jeer at a formal meeting that lasted for less than one minute, an hour before midnight was set as the time when negotiations would conclude. Ana Rocha Global Plastics Policy director for environmental group GAIA said, "Everyone was shocked as no one understood." It's like they are playing with children. Agnes Pannier Runacher, France's Ecology Minister, called the proceedings "chaotic." When asked what went wrong, INC chairman Luis Vayas Valdivieso attributed the failure to the division between the countries and described the negotiations as complex. "But we've made progress, and that is important," he added. U.N. provisions rules require that all states agree. This is a constraint some find unworkable, particularly under an administration that has retreated from multilateralism. "Consensus has died." "You cannot agree on a deal in which all countries that produce and export oil and plastics can decide what the deal will be," said IPEN’s Beeler. Some delegates, campaigners and others suggested voting as a way to break the impasse or to abandon the U.N. led process altogether. The WWF, among others, called for ambitious states to pursue their own deal in the hopes of bringing plastics-producing countries on board later. The talks produced two draft agreements, one of which was more ambitious than another. Both were rejected. The next meeting is not yet known. States have agreed to meet at a future date. David Azoulay is the Managing Attorney at the Center for International Environmental Law in Geneva. He said that it was a positive development when the top plastics producer, China, publicly acknowledged the importance of addressing the plastics' full life cycle. "This is a new development, and I believe this opens up an interesting opportunity." Reporting by Olivia Le Poidevin, Emma Farge and Valerie Volcovici; Additional reporting in Washington by Holger Hansen and Valerie Volcovici Editing by Dave Graham, Tomaszjanowski and Dave Graham
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US adviser Navarro: India's Russian crude oil purchases must stop
Peter Navarro, White House's trade adviser, said that India's purchases were funding the war in Ukraine by Moscow and must stop. He added that New Delhi is "now cozying up with both Russia and China." Navarro, in a recent opinion piece, wrote: "If India wishes to be treated like a strategic partner by the U.S. it must act as such." Published by: Financial Times. India's Foreign Ministry said that the country was unfairly singled-out for purchasing Russian oil, while the United States continues to buy goods from Russia. U.S. president Donald Trump imposed an additional 25% tariff on Indian products earlier this month citing New Delhi’s continued purchase of Russian oil. This brought the total tariffs for imports from India up to 50%. "India acts as a clearinghouse for Russian crude, converting embargoed oil into high-value imports while giving Moscow dollars it needs," Navarro stated. The adviser said that it would be risky to transfer advanced U.S. military capability to India, as New Delhi "is now cozying up with both Russia and China." China and India, longtime rivals, are quietly and carefully strengthening their ties in the face of Trump's unpredictable attitude towards both. Indian Prime Minister Narendra Modi will attend the upcoming Konferenz des Nations. Chinese President Xi Jinping will be visiting India at the end this month, while Chinese Foreign Ministry Wang Yi is scheduled to visit India on Monday for discussions about the disputed border. Source: A planned trip by U.S. negotiators for trade to New Delhi between August 25 and 29 has been cancelled. Over the weekend, this stalled talks on a proposed agreement for trade and dashed hopes that additional U.S. duties on Indian goods would be lifted by August 27. (Reporting from Shubham Kalya in Bengaluru, Editing by Christian Schmollinger).
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After Trump-Putin meeting, oil prices remain stable as Russia's supply concerns are eased
After a decline in the early trading, oil prices remained largely unchanged Monday as the United States did not exert any further pressure on Russia for it to end the Ukraine War by disrupting its oil exports after a meeting between the leaders of both countries. Brent crude futures fell 6 cents or 0.09% to $65.79 per barrel at 0342 GMT, while U.S. West Texas intermediate crude rose 2 cents or 0.03% to $62.82 per barrel. The U.S. president Donald Trump met with Russian President Vladimir Putin on Friday in Alaska and came away more aligned to Moscow regarding the need for a peace agreement instead of first a ceasefire. Trump will meet with Ukrainian President Volodymyr Zelenskiy on Monday, and European leaders to reach a quick deal to end Europe’s deadliest conflict in 80 years. Trump stated on Friday that he would not have to immediately consider retaliatory duties against countries like China because they bought Russian oil, but he might "in two to three weeks", easing concerns over a disruption of Russian supply. The market is still waiting and watching to see if the hostilities in Ukraine end, but it's more of a bearish perspective. China is the biggest buyer of Russian crude oil. India comes in second. Helima Croft, an analyst at RBC Capital, said that the primary issue was the secondary tariffs that targeted the main importers of Russian oil. President Trump has indicated he would pause the incremental actions on this front - at least in China. Croft stated that the status quo remained largely unchanged for now, and added that Moscow would not back down on its territorial demands. Ukraine and certain European leaders were likely to balk at a land-for peace deal. Investors will also be watching Jerome Powell, the Federal Reserve chairman's remarks at this week's Jackson Hole Meeting for clues about interest rate reductions that could push stocks to new records. Tony Sycamore, IG's market analyst, said that he expected him to remain noncommittal. He would also be dependent on data.
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Morning bid Europe- Geopolitics takes center stage before Fed.
Wayne Cole gives us a look at what the future holds for European and global markets. When the idea that Putin sent a body double to Alaska sounds plausible, you know we're living in crazy times. It's clear that President Trump is now tweeting Kremlin talking-points about Crimea and Zelenskiy. Putin seems to believe that Ukraine must give up the land that Russia has taken and that it has not been able to gain in three years of war. Zelenskiy, European leaders and others have repeatedly denied this. They will also be at his side when he meets Trump in Washington later today. The markets have judged that the threat of additional U.S. tariffs or sanctions on Russian oil exports has diminished. Oil prices have fallen modestly, with Brent down 0.3%. The share markets have been mostly stronger as Japan and Taiwan continue to make records and Chinese blue-chips reach a new 10-month high. European stock futures and Wall St. futures have both gained 0.2%. Goldman's report on S&P 500 earnings shows that the EPS has grown 11% year-on-year and 58% have raised their guidance for the full year. Home Depot, Target Lowe's, Walmart and Lowe's all report this week. The main event for monetary policy will be the Federal Reserve’s Jackson Hole Jamboree, where Chair Powell will speak on the economy outlook and the Fed’s policy framework. There doesn't appear to be a question-and-answer session yet. Panel discussions will feature ECB President Christine Lagarde, and Bank of England Governor Andrew Bailey. Futures prices are about 85% for a Fed rate reduction in September, so anything other than dovish comments from Powell will be a blow to the debt markets. The yield curve is steepening as long-term investors worry about inflation, the budget deficit, and the politicisation monetary policy. The yields on European bonds have also been rising, possibly due to the fact that governments have realised how much they will have to borrow in order to cover their increased defense spending. Market developments on Monday that may have a significant impact - EU Trade figures for June, US NAHB Housing survey
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Three killed and 17 injured in Kharkiv, Ukraine after Russian strikes
The United States is pressing Kyiv for a swift deal to end the war Moscow began. Oleh synehubov said that a drone attack in Ukraine's second largest city killed a two-year old boy early Monday morning, following a missile strike on Sunday night. Synehubov said that the number of injured victims from the Kharkiv attacks was "constantly increasing". Ihor Terekhov, the mayor of Ihor Terekhov, said on Telegram that two more people were killed in both attacks and 17 others injured, including six children aged between six and 17. Terekhov posted a message early on Monday saying that a woman had just been rescued under the rubble. She was alive. He warned that there could be more trapped under the rubble. Kharkiv in the northeastern Ukraine, near the Russian border, has been regularly targeted by Russian drones and missiles since Moscow launched its full scale invasion in February 2022. Synehubov stated that the earlier ballistic missile attack on the city had shattered around 1,000 windows. Ukraine's emergency service announced on Telegram that some residents were evacuated. Witnesses saw medics tending to residents in a street, and rescuers inspecting damages in residential buildings. Authorities said that two people were injured by the Russian strikes in Sumy, which also caused damage to at least 12 homes and a school. Oleh Hryhorov said that the regional administrator, Oleh, had posted on Telegram: "The enemy has continued to target civilian infrastructures in the Sumy Region -- treacherously and at night." It was not possible to independently verify the weapons that Russia used. Moscow has not yet commented. Both sides deny that they targeted civilians, but thousands have died in the strikes. The vast majority are Ukrainians. Donald Trump, the President of the United States, who met with President Vladimir Putin on Friday in Alaska for talks to end a war, has called on Kyiv, saying, "Russia is very powerful, and they are not."
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Vietnam is considering a rule change that would allow EVN, which has a loss-making business model, to increase power prices
Vietnam plans to change its regulations so that state utility EVN can adjust retail electricity rates to cover losses. These losses amounted to nearly $1.5 billion by the end of 2018. In a late-Sunday statement, the government stated that "the rule changes aim to ease difficulties for EVN while ensuring national security of energy". It added that the Ministry of Industry and Trade now seeks opinions on the reform proposal. EVN reported accumulated losses totaling 38.68 trillion Dong ($1.47billion) by 2024, despite a modest profit in the previous year. The company said that the losses were incurred due to geopolitical uncertainty and the rising cost of fuel. Nguyen Thi Hong, the governor of the central bank, warned earlier this month of inflationary risk, citing that increases in input costs due to adjustments made to electricity, medical and housing prices had increased pressure on cost of goods, driving core inflation up over recent months. EVN raised its average retail electric price by 4.8% last in May. Since 2023, the average electricity price has risen by 17%. (1 dollar = 26,280 dongs) (Reporting and editing by David Stanway; Khanh Vu)
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Iron ore prices rise on demand from China
Iron ore futures rose on Monday, supported both by strong demand and the expectation of more property stimulus in China, its top consumer. However, rising inventories curtailed further gains. As of 0230 GMT, the most traded January iron ore contract at China's Dalian Commodity Exchange was up 0.19% to 778.5 Yuan ($108.39). On the Singapore Exchange, September benchmark iron ore rose 0.44% to $102.35 per ton. Steelmakers restocked iron ore in anticipation of production restrictions mandated in northern China to improve air quality before the military parade commemorating the end World War II on September 3. As of August 14, the consultancy Mysteel reported that average daily hot metal production, which is a measure of ore consumption, was 0.1% higher than it had been in the previous week. China's central banks pledged to improve the framework of monetary policy on Friday, promising to implement and fine tune a moderately loosened policy amid the continued weakness in property markets. This strength continued despite a new tariff threat by U.S. president Donald Trump who announced he would announce additional steel duties within the next few weeks. Analysts at ANZ said that they expect China's Steel Industry to be relatively immune from ongoing trade tensions between the US and China, as trade to other markets like Europe and Asia will pick up the slack. Prices were still limited by the increase in portside inventories Steelhome, a consultancy, reported that the weekly steel production climbed 0.7% to the highest level since July 25, reaching 131.05 millions tons on August 15. Coke and coking coal, both steelmaking ingredients that are also used to make steel, have been reduced by 0.37% and 0.03 %, respectively. The benchmark steel prices on the Shanghai Futures Exchange are mixed. Rebar fell 0.19% and wire rod dipped 0.03%, while hot-rolled coil rose 0.12%. Stainless steel also gained 0.08%.
Oil prices drop as Russia's supply concerns ease following Trump-Putin meeting
The oil prices fell in the early Asian trading on Monday, as the United States didn't exert any more pressure on Russia for the end of the Ukraine War by implementing additional measures to disrupt Moscow’s oil exports following the presidents of both countries meeting on Friday.
Brent crude futures fell 32 cents or 0.49% to $65.53 a barrel by 2213 GMT, while U.S. West Texas intermediate crude dropped 23 cents to $62.57 a barrel.
The U.S. president Donald Trump met with Russian President Vladimir Putin on Friday in Alaska and came away more aligned to Moscow regarding the need for a peace agreement instead of first a ceasefire.
Trump will meet with Ukrainian President Volodymyr Zelenskiy on Monday, and European leaders to reach a quick deal to end Europe’s deadliest conflict in 80 years.
Helima Croft, an analyst at RBC Capital, said that the primary issue was the secondary tariffs against the main importers of Russian oil. President Trump has indicated he is halting his incremental actions on this front - at least in China.
She said that the status quo is largely unchanged for now, and that Moscow would not back down on its territorial demands. Meanwhile, Ukraine and certain European leaders may balk at a land-for peace deal.
(source: Reuters)