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Stocks rally in relief after Trump suspends tariffs
On Thursday, global stocks rose, the dollar regained its footing and the manic bond saleoff stabilized after U.S. president Donald Trump announced he would temporarily reduce the heavy duties he had imposed on dozens countries. After a market crash that wiped trillions from global stocks, and pushed down U.S. Treasury Bonds and the dollar in an unexpected reversal, Trump announced on Wednesday a 90-day suspension of many of his new duties. Overnight, Wall Street's "Magnificent 7" stocks gained more than $1.5 trillion. The S&P 500 Index and Nasdaq Composite Index also recorded their largest percentage gains for more than a decade. The U.S. Futures market turned lower Thursday with Nasdaq Futures dropping 0.67%, and S&P500 futures declining 0.17%. In the previous session the dollar recorded its biggest one-day gain against the Swiss Franc and the yen since two months, and it held most of these gains in Asia on Friday. The Nikkei soared by 8% in Japan, while European futures jumped. The EuroStoxx 50 and DAX Futures each climbed by roughly 9%. FTSE futures jumped 6%. Jeff Schulze is the head of ClearBridge Investments' economic and market strategy. He said that the news surprised the market because of its magnitude. "However, given that the tariffs have been announced and are still in place... this is still going dramatically increase the average effective rate of tariff in the U.S. up to close to 20 percent." Trump's decision to reverse the tariffs on specific countries is not final. The White House announced that a 10% blanket duty will continue to be applied to almost all U.S. imported goods. This announcement does not seem to affect existing duties on steel, aluminium and autos. He said he would also increase the tariffs on Chinese imports from 104% to 125%, which came into effect Wednesday. China raised the additional duties on American goods to 84% on Wednesday and imposed restrictions against 18 U.S. firms, mostly in defense-related industries. It is hard to imagine either side reversing their position in the coming days. We believe that there will be talks, but a complete rollback of the tariffs added since Inauguration day is unlikely. Our long-held assumption that the effective rate of tariffs on China will settle at around 60% seems to be the best bet. The offshore yuan is expected to open Chinese markets ahead of the onshore opening. The dollar was last 0.15% lower at 7.3570 per dollar after hitting a record low earlier this week. SELL BONDS The steep drop in bond prices this week showed signs of slowing down on Thursday. The benchmark 10-year Treasury rate was last at 4,3160%. It had reached a high of 4.515% in the previous session, and risen by 13 basis points. Fears of fragility on the world's largest bond market were reignited by a violent U.S. Treasury sale in previous sessions. The "dash for money" of the COVID era was reminiscent. Lawrence Gillum is the chief fixed income analyst at LPL Financial. He said that Treasury yields are continuing to rise because of "sticky inflation, a patient Federal Reserve, potential foreign buyer boycotts and hedge fund deleveraging." The minutes of the Fed's March meeting were released on Wednesday. They showed that policymakers are not going to rush to cut interest rates because they believe higher tariffs will boost inflation. However, they also worry about Trump's trade policies affecting economic growth. The markets are now pricing just 80 basis points in rate reductions by December. This is down from over 100 bps earlier this week. Oil prices in other countries rose due to optimism about the tariff pause. Spot gold continued to climb, and it was up by 0.5% last at $3.097.52 per ounce.
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Trump does not want US Steel to go to Japan
U.S. president Donald Trump said Wednesday that he doesn't want U.S. Steel Corp. to move to Japan. This suggests he doesn't support Nippon Steel in its bid to acquire the American steel manufacturer. The comment seemed to contradict recent Trump administration actions. Trump instructed a national-security panel on Monday to review Nippon Steel’s $14 billion offer for U.S. Steel in order to determine whether "further actions" are appropriate. This raised hopes that the deal might finally be approved. After Trump's comment on Wednesday, U.S. Steel shares fell 13% after-hours. Trump added, "We love Japan." Trump said, "We do not want it to be sent to Japan or anywhere else. We are working with them." U.S. Steel & Nippon Steel didn't immediately respond to comments. In January, the then-outgoing president Joe Biden blocked the merger on grounds of national security. The two companies then sued the Committee on Foreign Investments in the United States (which examines foreign investments to determine if they pose a national security risk), claiming that Biden had influenced the committee's decisions and violated their right to an impartial review. The deal, announced in December of 2023, was met with opposition from all political parties ahead of the U.S. Presidential election on November 5. Then-candidates Trump, and Biden both vowed to stop the purchase of this storied American firm. Companies had claimed that Biden was against the deal while he ran for re-election in Pennsylvania, a battleground state where U.S. Steel has its headquarters. The Biden administration defended the review, claiming it was essential for protecting infrastructure, supply chains, and security. The Trump administration filed an extension motion last month to allow the government to have more time to complete merger negotiations with the companies. The Trump administration and companies requested late on Monday that an appeals court pause the litigation until June 5, while CFIUS reviews this tie-up once again. They noted that the process could "fully resolve" their claims.
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US stocks soar, dollar gains in dramatic rally of relief as Trump pauses his tariffs
The S&P 500 recorded its biggest gain in a single day since 2008. Meanwhile, the dollar rose and Treasuries reversed their losses after U.S. president Donald Trump announced a temporary U.S. tariff pause. Trump's announcement came after a day of turmoil on the markets. Bond prices and the dollar had fallen earlier that morning amid fears the Trump administration would raise tariffs up to levels not seen in more than 100-years, which could push the economy into a recession. The president announced a 90-day pause on tariffs for many countries, even though he increased the levy of 125% on Chinese imports. The market was relieved by the news that there would be a break. The S&P 500 closed 9.5% higher while the Nasdaq gained 12.2%, its largest one-day gain in history and second-largest ever. Investors said that uncertainty about tariffs on a longer-term basis continued. Gina Bolvin of Bolvin Wealth Management Group, Boston, said: "This is a pivotal moment that we have been waiting for." The timing could not be better as it coincides with the beginning of earnings season. Bolvin said that "However uncertainty remains over what will happen after the 90-day window, leaving investors to deal with possible volatility in the future." The next U.S. quarter will provide more insight into the health and performance of American corporations. Several U.S. financial institutions, including JPMorgan Chase are due to release their results on Friday. The benchmark 10-year Treasury price also reduced its earlier losses, after the U.S. Treasury Department witnessed strong demand for the notes in an afternoon auction. The yield on the benchmark 10-year U.S. notes increased by 6.8 basis points, to 4.328%. Prior to that, it had reached a high of 4.515% - the highest since 20 February. Bond yields are opposite bond prices. The sharp drop in Treasury bond prices and the reports of large-scale liquidations have raised concerns over deteriorating liquidity on the market. Before Trump's announcement, the dollar was lower. The selling of U.S. assets has been widespread and deep since Trump announced sweeping tariffs in April. Deutsche Bank analysts said in a Wednesday note that "the market has lost trust" in them, and the world is entering uncharted financial territory. The dollar index (which measures the greenback in relation to a basket of currencies, including the yen, the euro and others) rose by 0.25%, reaching 103.03; the euro fell 0.08%, at $1.0947. The dollar gained 1.04% against the Japanese yen and 1.01% against the Swiss Franc. U.S. stock prices extended their gains after Trump's announcement. The Dow Jones Industrial Average rose by 2,962.86 or 7.87% to 40,608.45. The S&P 500 gained 474.13 or 9.52% to 5,456.90. And the Nasdaq Composite gained 1,857.06 or 12.16 % to 17,124.97. MSCI's global stock index rose 42.32, or 5.70%, to 785.28. The pan-European STOXX 600 ended the day down 3.5%. The news about tariffs also caused oil prices to rise. Brent futures gained $2.66 or 4.23% to settle at $65 a barrel. U.S. West Texas Intermediate Crude Futures rose $2.77 or 4.65% to $62.35.
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Aurubis, a German copper recycling company, expands its US facility
Toralf Haag, CEO of the German firm, said on Wednesday that Aurubis plans to increase its copper recycling smelter's capacity in the U.S. in this year. Haag added that Aurubis is looking forward to future investment opportunities. Aurubus invested $800 millions in the four-year project. Haag says it will process 188,000 metric tons complex copper scrap to produce 70,000 tonnes of refined metal per year. North America is a very attractive market. Haag stated in an interview at the CESCO and CRU Copper Conferences that there is currently no large recycling facility located in North America. The majority of scrap is exported. According to Trade Data Monitor, the U.S. exports nearly 960,000 tons copper scrap each year. Of that, 41% went to China, 11% Canada, and 10% Thailand. The U.S. president Donald Trump ordered an investigation into the possibility of import tariffs for copper, including scrap. This is to encourage local production of this metal that's used in construction and the power industries. Haag added that Aurubis only had one operation in the U.S., the Richmond site. Aurubis may invest in additional recycling capacity in the U.S. Copper scrap is also found in the cable industry, and by telecom companies. Aurubis anticipates that data centres will be a future source of scrap. Copper in data centres is only good for three to five year. Then it has to be replaced, because technology moves so quickly. The demand for copper is expected to increase in the future due to data centres that are used for artificial intelligence. (Reporting and editing by David Gregorio; Pratima Deai)
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What is Trump's partial tariff pause?
U.S. president Donald Trump abruptly halted part of his trade war on global trading partners on Wednesday, reducing duty rates on many goods for 90 days in order to give room for negotiations on lower trade barriers. This was done even though he raised new tariffs to 125% on Chinese goods. This latest course reversal was part of Trump's hastily announced tariff agenda. It has caused confusion over its goals. Here are the key details about Trump's latest action: "RECIPROCAL" TARIFFS ARE NOW SUSPENDED Trump's decision will have the net effect that most goods imported from other countries are subject to an import tariff of 10% for the next ninety days. The 90-day suspension of Trump's Wednesday higher reciprocal tariffs for 57 trading partner is in effect. The European Union, Japan and South Korea are among the partners that will be reverting to 10% tariffs. The "Baseline 10% Tariff Rates" that went into effect on April 5, for most countries, including Brazil Australia Britain and Colombia will continue to be in place for 90 days. CHINA RAISES TARIFF TO 125% Trump has retaliated with new tariffs after several rounds of escalating tariffs, including China's 84% tariff announced on Wednesday in Beijing. The total amount of new duties since Trump took office in January is now 125%. The new duties are on top of the tariffs that he imposed during his first term. MEXICO, CANADA AND CANADA WILL NOT CHANGE Trump's announcement of tariffs last week spared Canada, Mexico and the United States. However, their goods will still be subject to 25% fentanyl tariffs if not in compliance with the U.S. Mexico Canada trade agreement's origin rules. The USMCA compliant goods are exempt from these duties for now. AUTOS, METAL TARIFFS REMANENT Trump's pause doesn't apply to the 25% tariffs on steel and aluminium that he imposed in March, nor on autos which began on April 3. The 25% tariff on auto components will not be implemented until May 3. SECTORAL CARVEOUTS STAY Trump's first order exempted critical minerals, copper, lumber and semiconductors from global tariffs. These sectors will be subject to future trade investigations, which are likely to result in separate tariffs. Separately, Trump’s order exempted energy products such as oil, gas, and other energy from tariffs. (Reporting and editing by David Lawder)
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Californians living in areas affected by wildfires are urged to get tested for lead poisoning
Early in January, Tony Collier and Jacqueline Collier watched helplessly as the Eaton Wildfire destroyed dozens of homes in their neighborhood, Altadena, California. The interior of their home is badly damaged, but the exterior is intact. The couple visits their home every week and is worried about air pollution. "The trucks pass by 10 times, sometimes with their doors open. Our house has been cleaned two times, but there is still soot. We know the debris comes from trucks. Jacqueline Collier, 64, said: "It's dangerous." Due to the widespread concern about toxic contaminants found in smoke, ash and debris, LA County Public Health offers free blood tests for lead in Altadena, Pacific Palisades and other areas near burn zones. Jacqueline Collier, who has pre-existing medical conditions, said that she didn't hesitate to sign up in Pasadena for the blood test. Tony, her husband, hopes that the test results give him peace-of-mind. He says "we cannot take any risks." He said: "I have what I call my precious cargo, which is my wife, kids, and other things, like a dog. I want to be there for them." Altadena had many historic properties, which residents said made the city unique. While crews are working to remove the debris, piles of burned rubble sit idle. We would expect any home built before 1978 to contain lead paint. As these homes burned, lead probably entered the environment whether it was the soil, air or water," said Los Angeles County Health Manager Janet Scully. Michele Zack also expressed concerns about the toxicity. Zack said that even when wearing a mask they don't like to stay at the construction site for more than an hour because it makes them cough and they get a sense of toxic air. Scully stated that lead poisoning symptoms can be missed. She added that "some of the symptoms can be stomach pains, irritability and learning disabilities in children." The free blood tests will continue until August. Reporting by Jorge Garcia, Editing by Mary Miller and Rosalba o'Brien
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Brazil will hold preliminary discussions ahead of the COP30 Climate Summit
Valter Correia Da Silva, Valter's Special Secretary for COP30 in the Brazilian government, said on Wednesday that Brazil had scheduled the first round of negotiations to help countries prepare for COP30 - the global climate summit. The main event will begin at Belem in the Amazonian region of Brazil about a month prior. He said that the Pre-COP will be held in Brasilia on October 14 and 15. The Pre-COP, despite being a smaller event with just the main negotiators present, has become more important this year due to the fact that countries are struggling to meet their new pledges for reducing greenhouse gas emissions, which cause global warming. These pledges, called Nationally Determined Contributions, or NDCs, have gained in importance. More than 90% of the countries have not met the February deadline to submit their new NDCs. The world is now focused on wars and disputes over trade, while funding for climate projects has dried out. The United Nations extended the deadline until September. "The pre-COP of this year will determine whether Belem is a success, or not." Brazil wants the talks to result in effective negotiations one month later, according to a source following the issue. (Reporting by Lisandra Paraguassu, editing by Manuela Andreoni; Editing by Aurora Ellis)
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Study finds that one in ten Brazilian mines could be abandoned
According to a study conducted by the think tank Instituto Escolhas in Brazil, there are 3,943 abandoned mining sites, which represents 11% of all authorized operations. This highlights social and environmental risks posed when miners ignore regulations. The study, based on data provided by the National Mining Agency, points out threats like deforested land that has not been restored, soil and water contamination, and physical instability caused by abandoned mines. The study cites an internal ANM document that acknowledges ANM's lack data and oversight over areas where mine operators should be restoring. The ANM document, dated November 20,24, signed by the leader of the task force for updating regulations, stated that "there is a total lack of control" over the number and size of abandoned mines. The ANM has not responded to a comment request. The Brazilian Mining Association IBRAM declined to comment until it had reviewed the study. Brazil is the world's largest producer of iron ore. It also mines nickel and gold. Instituto Escolhas has noted that Brazilian law holds companies responsible for restoring the areas damaged by mining activities. The study did, however, highlight gaps in enforcement including the lack of ANM Inspectors. Larissa Rodrigues is the director of research at the Institute. She believes that miners must provide guarantees to their financial ability to restore an area before they are granted a permit. The study did not include the names of the companies. Reporting by Ricardo Brito, Brasilia; writing by Marcela Ayres and Rod Nickel; editing by Brad Haynes and Rod Nickel
Heat wave swelters United States East Coast as harmful temperatures expand to West
More than 100 million individuals across the U.S. were under heat warnings on Sunday, with cities on the East Coast bracing for recordbreaking temperature levels as the heat dome causing the unsafe conditions broadens to the West Coast.
Baltimore and Philadelphia are forecast to touch records near 100 degrees Fahrenheit (38 degrees Celsius) on Sunday, while temperatures increase into the 90s F in states like Idaho, Montana and Wyoming, as much as 15 degrees above typical for this time of year. The extreme heat will then shift to Nebraska and Kansas on Monday, the National Weather Service (NWS) stated.
Officials are warning of harmful conditions in the Philadelphia region where high humidity might drive heat indices above 105 F (41 C), making it feel even hotter than the actual temperature.
It likely suggests we'll be seeing regular durations of extreme heat across a good part of the nation into July, NWS meteorologist Marc Chenard stated. Not constant at any one spot, however the total pattern will continue to favor these above normal temperatures.
Temperatures have actually cooled in the Ohio Valley, Great Lakes and New England regions, however extreme heat in the 90s F continues to stretch from Virginia to New York.
Climate change is driving unsafe heat waves across the Northern Hemisphere today and will continue to deliver unsafe weather for decades to come, research study shows.
Extreme heat is suspected of causing numerous deaths throughout Asia and Europe as it has taken over cities on four continents. More than 1,000 have actually died during Haj, the annual pilgrimage to Capital in Saudi Arabia, in the middle of sweltering temperatures this year, according to a tally.
In New Mexico, authorities are responding to numerous weather occasions, including a dust storm, flooding and two wildfires.
The Biden administration recently stated an emergency situation over the wildfires, which have actually been blamed for two deaths and more than 1,400 damaged structures.
The FBI has provided a $10,000 reward for details leading to an arrest of anybody accountable for the fires. The blazes have actually scorched 25,000 acres (10,117 hectares) around the town of Ruidoso, according to the government wildfire tracking website Inciweb.
While extreme heat is causing issues in many states, other states are likewise competing with flooding.
Iowa Guv Kim Reynolds on Saturday issued a disaster proclamation covering 21 counties due to flooding from heavy rains in the northwest part of the state. Rock Valley officials on Saturday purchased some homeowners to evacuate with the aid of the National Guard, local news outlets report.
A flood advisory is likewise in location in southern Minnesota and southeastern South Dakota.
(source: Reuters)