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Minister says Brazil will announce new measures to reduce fuel prices impact of the Iran war
Jose Guimaraes, Minister of Institutional Relations, said that Brazil will take new measures in the next few days to reduce the economic impact of the U.S.-Israeli conflict on Iran. This includes steps to lower gasoline prices. Guimaraes told reporters in Brasilia that the package is still being finalized. He also confirmed that the Finance Ministry officials are reviewing fuel prices. He said that the government was working on a scenario where there could be 'up to two months worth of conflict. However, it is still uncertain what impact this will have on the economy. SEVEN-DAY WORKWEEK Guimaraes said that the Brazilian government was open to a 'transition period' in a bill to reduce the six-day standard workweek. However, it did not see the need for any new tax breaks, to compensate employers. Guimaraes says that the proposal, which is a major plank in President Luiz Inacio Lula's platform for the October elections will be announced during Workers' Month. Negotiations in the 'Congress focused on how to reduce the resistance of business groups against the 'plan which would reduce the workweek from 44 to 40 hours. Lawmakers have talked about a gradual transition, or a compensatory tax relief. Guimaraes stated that a transition was "possible", but he did not think there would be room for tax exempts. Reporting by Lisandra paraguassu, Writing by Isabel Teles, Editing by Alison Williams & Aurora Ellis
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Stocks choppy, oil rises as doubts persist about US-Iran peace deal
The trading on Wall Street was choppy Thursday, after stocks had reached the levels seen just before the selloff prompted by U.S. and Israeli strikes against Iran. Meanwhile, rising oil prices were a reflection of the continued uncertainty about the prospects for a peace deal. Source: A Pakistani mediator has made progress on "sticky" issues in the conflict. Iran, however, warned that the fate of the nuclear program was not resolved. Israel is waging an parallel campaign in Lebanon against the militant group Hezbollah, which is backed by Iran. Donald Trump, the U.S. president, said on Truth Social that Israeli and Lebanese officials had agreed to a 10-day truce at 5 pm EST (2200 GMT). The Dow?Jones industrial average rose 0.11% in New York to 48,518.06, while the S&P 500 climbed 0.24% to 7,039.70 and the Nasdaq Composite climbed 0.29% from a previous retreat to 24,084.48. U.S. stocks had reached new records on Wednesday. European stocks are recovering more slowly. The pan-European STOXX 600 dropped 0.03% on Friday. The market's recent moves are more driven by sentiment than fundamentals. "We are still waiting on earnings reports and the economic data doesn't really justify the high level of enthusiasm," said Melissa Brown. Earnings season has picked up pace. U.S. beverage giant PepsiCo gained 2% following a quarterly profit forecast that was exceeded. After reporting results, Charles Schwab and Travelers insurers as well as Abbott Laboratories in the healthcare sector all dropped. OIL MARKETS ARE SCEPTICAL Oil markets rose after falling earlier on the hope of a solution to the Middle East conflict. The trading was volatile Wednesday after a source from Tehran said that Iran might consider allowing safe transit through a part of the Strait of Hormuz in its negotiations with the United States. Brent crude rose 3.31% to $98.04 a barrel. U.S. crude gained 2.29% on the day. John Evans, an oil market analyst at PVM, said: "We are sceptical about any immediate resolution to this conflict." There is always an opposite to any headline. After data showed that initial claims for unemployment benefits in the states were lower than expected last week, the U.S. Dollar rose. The index that measures the dollar against a basket including the yen, the euro and other currencies, rose 0.23%, to 98.23. The index had fallen for eight consecutive sessions up until Wednesday, losing most of its gains as the war made it a safer haven. Chinese stocks rose over 1% in China after forecast-beating data showed that exports had helped the giant economy grow by 5% in its first quarter. The yuan also reached a new three-year-high of 6.8152 to the dollar on the overseas markets. Investors weighed the possibility that a easing of tensions between the U.S.A. and Iran could lead to a rate cut by the Federal Reserve. This would boost precious metals prices. Spot gold rose by 0.26%, to $4.802.59 per ounce. U.S. Gold Futures increased 0.08%, to $4.803.70 per ounce. The Iran war has led to higher energy prices, which have dampened expectations for interest rate reductions. This in turn has weighed on gold prices, as it does not produce interest income.
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The US and Nigeria have a record amount of jet fuel to sell in Europe, which is facing a shortage.
Data from Kpler & LSEG shows that Europe has seen record-breaking inflows of jet oil from the United States 'and Nigeria. It is trying to shore up a supply due to disruptions in Gulf imports. The Iran war has effectively closed off tanker traffic trying to leave via the Strait of Hormuz. According to a document seen, European airlines are urging the European Union (EU) to take emergency measures including widespread airspace closures. U.S. Supply is expected to reach between 149,000 and 200,000 bpd based on vessels discharged or still due. This would be a record according to data dating back to 2015 for LSEG, and 2017 for Kpler. Data from both sources indicated that April imports were at around 66,000 bpd. This is also the highest ever recorded and highlights Nigeria's increasing role as a swing?fuel supplier since the launch of the Dangote refinery in Africa, 2024. The EU's requirement that countries maintain 90 days worth of emergency oil reserves is not specific in terms of fuel levels. International Energy Agency data show that Spain is a net jet fuel exporter, while Britain imports 65% its demand. Levels of jet fuel fell to their lowest since March 2023 last week at the Amsterdam-Rotterdam-Antwerp storage hub, ?data on held independently held stocks showed. Nevertheless, the United States exports are already at record levels. Energy Information Administration data shows that in the week ending April 3 the U.S. exported an estimated 442,000 barrels?jet fuel. This is double the average of 219,000 barrels seen last year. Nigeria has also been exporting products at a record rate, with 416,000 bpd so far in this month. Although the U.S. is a major consumer of jet-fuel, the prices for exports to Europe and Asia are better. Nigerian Airlines on Thursday announced that they would cease all flight operations as of April 20th unless the jet fuel price was reduced. They noted a 270% increase in prices since February. In the IEA’s 'latest monthly report,' it was stated that if 'European markets are unable to secure over?50% the volume lost from the Gulf in June, stockpiles will reach a critical 23-day level, a point at which physical shortages begin.
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Gold prices hold steady as market attention turns to Iran peace talks
Gold prices held steady on Thursday as the markets watched developments between the U.S. and Iran, including their impact on inflation and interest rate rates. As of 11:00 am, spot gold was unchanged at $4.789.09 an ounce. After hitting a month-high in the previous session, ET (1500 GMT) was little changed. U.S. Gold Futures dropped 0.3% to $4.810.90. If we see an easing in tensions between the U.S. and Iran or a war ending, it will increase the likelihood that the Federal Reserve rate could be cut down the road... This would support precious metals," said David Meger, director of Metals Trading at High Ridge Futures. Sources expressed optimism that the Iran War may be coming to an end. A Pakistani mediator was said to have made a breakthrough in "sticky" issues, although Iran claimed that?the fate? of its nuclear program has not yet been decided. The initial fall in gold prices was due to the U.S.-Israeli war against Iran, which began late February. Liquidity pressures and inflation fears arose as energy prices rose. This led markets to reduce expectations of interest rates being cut. Gold is a zero-yielding investment, so it tends to lose its appeal when interest rates rise. The traders currently see a 32 percent chance that the U.S. will cut its interest rates this year. The data showed that the number of new claims for unemployment benefits in the United States fell last week. This suggests that labor market conditions are stable. However, employers are cautious when it comes to hiring more staff because of the economic impact caused by war with Iran. Silver spot fell 0.7%, to $78.53 an ounce. Silver market heading towards sixth year of structural deficit with 762 millions troy ounces?withdrawn from stocks since 2020, raising the risk of a new liquidity squeeze?despite lower demand expectations. Palladium fell 0.7%, to $1,578.06. Platinum was down 0.7%, at $2,095.06 Ashitha Shivprasad, Bengaluru (Reporting and Editing by Emelia Matarise and Ni Williams).
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Three South African unions reject Eskom's 7% wage offer. Two unions accept it.
Union representatives reported on Thursday that two of South Africa's largest labour unions have accepted the state utility Eskom's offer for a 7% wage hike, while another has rejected it and declared a deadlock by requesting a higher increase. Eskom started pay talks with the National Union of Mineworkers, the National Union of Metalworkers of South Africa and Solidarity last year. Utility's final offer was a 7% increase in pay for each of the three years under negotiation, starting July 2026. Gideon du Plessis, general secretary of Solidarity and Khangela Baloyi, coordinator for NUM's energy sector, said that their members had accepted the offer. "Our members gave us a directive to accept Eskom’s final offer." "We will sign the contract tomorrow," du Plessis said. NUMSA members want a higher increase. Irvin Jim, NUMSA's general secretary, said: "Our members want 8% the first year." We have declared a deadlock. We could end up in arbitration and accompanied by protests. A spokesperson for Eskom said that the company remained "committed" to the process and added that the "salary negotiation with our trade unions is at a critical stage". Eskom's financial woes and power outages have weighed heavily on Africa's largest economy for many years. But, Eskom is now predicting a sustained improvement of its finances over the next few years. Reporting by Olivia Kumwenda Mtambo and Nilutpal Timsina. Mark Potter (Editing)
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The US will punish fraud, insider trading and fraudulent derivatives trading, the derivatives regulator told Congress
Washington's top derivatives regulator assured lawmakers on Thursday that the United States would punish a?fraud, as concerns mount on Capitol Hill about oil, stock, and prediction market participants?trading illicitly on insider information derived from the White House. According to prepared remarks viewed by, Michael Selig's first congressional testimony comes a day following media reports that the U.S. Commodity Futures Trading Commission is investigating a number of oil futures transactions executed just before President Donald Trump made major policy changes. These remarks also refer to the sudden attention that the relatively low-profile agency, which has only one member in place, Selig, instead of its usual five, is now receiving. Selig said in a prepared statement that anyone involved in fraud, insider trading, or manipulation would be found and face the full force of the law. Selig, however, said that the CFTC will not issue new regulations until the four remaining members of the five member commission have been confirmed. He said, "We can't, for the sake?of?the American public, slow down our rulemaking." Selig testified before the House Agriculture Committee that it was important to get safeguards for markets and consumer protections. I could not, therefore, refuse to perform my duties as I had been appointed by the President. At least four occasions were identified in which legal experts stated that investors appeared to have known what was going to happen before the Trump administration made major decisions about tariffs, Venezuela and Iran. These trades are largely within the CFTC's jurisdiction. David Miller, the new enforcement director of the CFTC, stated last month that policing?insider trading and market manipulation?were top priorities for his agency. Selig defended the agency's claim to have sole jurisdiction over prediction markets. Critics compared this to state-regulated gambling. He also spoke of its "work with the Securities and Exchange Commission" in adopting what they say will be a new age for digital assets. The CFTC was created in 1974 and has a budget of less that $400 million. It is responsible for policing a complex and expanding set of'markets of futures, swaps, and event contracts. Selig, the lone member of this commission, is normally composed of five members. Two are from the minor party. Douglas Gillison, Washington; David Gaffen, Hugh Lawson and Hugh Lawson edited the report.
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Sources say that India's RBI has asked state oil refiners in India to reduce spot dollar purchases.
India's central banks has asked state-run refineries to reduce?spot dollar purchasing and use a special credit line to meet their foreign exchange requirements, according to?three sources. This is a return to measures taken during the Ukraine War to help ease the pressure on the rupee. The Indian currency has been battered by a surge in oil price and heavy outflows of foreign portfolios. The Indian currency has dropped more than 3% this year to new lows, making it Asia’s worst performing major currency. Two sources stated that the use of the special credit facility will reduce the dollar demand by refiners and help ease the pressure on the rupee. Refiners buy a lot of dollars for paying for oil imports. Sources said that the state-run refineries were?asked to use the State Bank of India as a credit provider. SBI, India's largest and most backed bank, is owned by the state. The three sources refused to name themselves as they were not authorized to speak with the media. Reserve Bank of India (RBI) and SBI didn't?immediately reply to emails seeking comments. Credit lines are available to the major state-run refining companies Indian Oil Corp.,?Hindustan Petroleum Corp. and Bharat Petroleum Corp., which together control around half of India's total 5.2 million barrels of refinery capacity per day. One source said that refiners were also encouraged to make daily dollar purchases via SBI rather than multiple banks. This person said that since SBI already handles a large amount of merchant flows, channeling oil-related FX through SBI could help reduce the overall impact on the market. A second source stated that refiners could either purchase dollars at the RBI's reference rate, or use their credit line to meet their foreign exchange needs. No refiner responded to an email seeking comment. Three separate spot FX traders from those cited above said that they had observed a decline in oil company activity on the spot market. RUPEE STRAIN Sources say that the RBI has been using crisis-era measures to support the rupee in the face of pressure from the Iran 'war. The rupee reached a record low of 95 dollars per rupee in late March due to concerns about the spillovers. Other steps have been taken by the central bank to stabilize the currency. The central bank has taken other steps to shore up the currency. The RBI has also sold dollars to support the currency. Following the bank's actions, the rupee strengthened by about 2% compared to its previous record low. The last time it was quoted, on Thursday, at 93.20 to the dollar. Reporting by Nidhi, Jaspreet and Nimesh. Mark Potter (Editing)
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Britain will scrap carbon tax on electric generation in April 2028
By ?Susanna Twidale LONDON 16 APRIL - Britain will scrap its carbon 'tax' on electricity production in April 2028. The?government announced this on Thursday as it tries to control the rising cost of energy. The Carbon Price Support tax was introduced in Britain on April 13, 2013 to make coal power more expensive and help meet its climate targets. In the budget of last year, the government set a tax of 18 pounds ($24), per metric ton of carbon dioxide, until April 2028. "CPS is no longer suited to its original purpose. Dan Tomlinson said, "Coal has been pushed?off grid" in a written announcement to parliament. The last coal-fired plant in Britain closed its doors in 2024. Since then, the government has accelerated its use of?renewable energy to achieve a goal to decarbonize Britain's electricity sector largely by 2030. Tomlinson stated that "with 'our Clean Power 2030 mission we are already reducing the reliance of our electricity system on volatile fossil fuels, and we do not need this additional tax to provide incentives to our grid to 'decarbonise it," The tax is paid on top of the costs under the Emissions Trading System in which benchmark prices are currently around 49 pounds per tonne by fossil fuel electricity generators.
Jansson, the deputy governor of the Swedish central bank, says that it is important to be alert about spillovers from Middle East conflict.
Per Jansson, Riksbank's deputy governor, said that the central bank of Sweden must be alert to the potential effects on inflation caused by the war in the Middle East, particularly the rising energy prices.
Jansson stated that the war caused considerable uncertainty but that it was very different than the situation in 2022 when inflation started to soar. He cited lower inflationary pressures and weaker demand, as well as a stronger Swedish krona.
Jansson summarized a speech by saying, "This means that the risk is spillover effects are lower now than they were?then."
He said that the impact of higher oil prices on inflation would be gradual but it was still too early to draw any conclusions.
He told reporters that "it feels a bit more stable now".
He said: "The stock markets are up and the market has also made this interpretation. The oil price is down, rates are down a bit, and the stock markets have gone up. But these issues need to be resolved right away."
At its latest policy-setting?meeting the Riksbank maintained?its key interest rate at 1.75%, and added that it expected no changes for some time, but cautioned the Middle?East War made the forecast uncertain.
The markets are pricing in a rate increase of?1 per cent by the end of the year.
The next rate decision by the bank, which targets inflation of 2%, is expected to be announced on May 7.
This week, the statistics office reported that annual headline inflation for March was 1.6%.
(source: Reuters)