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London copper gains; firm dollar, soft US growth data cap rise
London copper rose on Thursday, after U.S. president Donald Trump hinted that a possible trade deal could be reached with China. This signaled a deescalation of tensions with the world's largest metals consumer. However, a stronger dollar, and weak U.S. economic data, capped gains. As of 0402 GMT, the benchmark copper price on London Metal Exchange (LME), rose by 0.2%, to $9,142 per metric ton. Trump stated on Wednesday that he had "potential" deals with India and South Korea, and said that it is very likely that the U.S. would make a deal in China. The dollar rose on Thursday, despite weak U.S. economic data. Investors were also looking for signs that the trade conflict may be ending. The greenback price of commodities is more expensive for buyers who use other currencies. Data showing that the U.S. economic contraction contracted for the 1st time in 3 years during the first quarter was a dampener on the mood. Businesses were rushing to import goods in order to avoid tariffs and higher costs. The decline in trade also highlights the chaotic nature of Trump's often-chaotic trade policy. "Incoming data continue to signal an economy slowdown in the U.S. An increased recession risk is underscored by a slower pace of hiring and a smaller-than-expected drop in GDP," ANZ Research stated. Other London metals saw aluminium rise 0.02% at $2,400 per ton, while zinc rose 0.04% at $2,593.5. Lead fell 0.05% at $1,956.5. Tin gained 0.2%, reaching $31,400, and nickel dropped 0.3%, falling to $15,380. The Mainland China Market will be closed on May 1st for a 5-day holiday to celebrate Labour Day. (Reporting and editing by Sumana Aich, Rashmi Anich, and Neha Arora)
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Woodside and BP Sign Gas Supply Deal for Louisiana LNG
Woodside has signed an agreement with BP for the supply natural gas to the Louisiana LNG project.The agreement represents the first tranche of a diversified portfolio of feedgas that will support the Louisiana LNG project, enabled by the project’s extensive interconnectivity to multiple producing basins and interconnecting pipelines.Under the agreement, Louisiana LNG Gas Management LLC (GasCo), a wholly owned subsidiary of Louisiana LNG, has committed to purchase on a long-term basis up to 640 billion cubic feet of gas from BP for an ultimate delivery to Line 200 beginning in 2029.GasCo will be responsible for implementing the gas sourcing strategy to support the Louisiana LNG project, according to Woodisde.On April 29, Woodside made final investment decision (FID) to the three-train, 16.5 million tonne per annum (Mtpa) Louisiana LNG project, targeting the first LNG in 2029.“Louisiana LNG is a compelling investment, expected to deliver significant cash generation and create long term shareholder value. Securing this gas supply agreement is an important step for the project.“Woodside has a long history of successful collaboration with BP. By drawing upon BP’s experience with MiQ certificates, we can access verifiably low methane intensity molecules for the Louisiana LNG project. This supports Woodside’s goals as a member in the UN Environment Programme’s OGMP 2.0 initiative,” said Meg O’Neill, Woodside’s CEO.
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Couche-Tard opens up negotiations for Japan's Seven & i by gaining access to the books
Alimentation Couche-Tard and Japan's Seven & i have signed a non-disclosure (NDA) agreement that will allow the Canadian company to access the Japanese retailer's data in order to pursue a $47 Billion acquisition. The deal represents progress in the takeover negotiations for Couche-Tard. It operates Circle-K convenience store in Canada and in the United States, and has been trying since August to acquire Seven & i. Seven & i, the operator of 7-Eleven, said that the terms and conditions of the agreement would remain confidential. The agreement includes a clause that protects the target companies against hostile takeovers. Couche-Tard said it may be able to improve its offer if it has access to "full diligence information". The current offer, which is around $47 billion, would be the largest foreign takeover of Japanese companies ever. In a statement, Paul Yonamine, the chairman of Seven & i’s independent special committee for examining bids, stated that "the execution of the NDA" was a positive step towards a constructive engagement with ACT. Seven & i previously stated that Couche-Tard’s refusal to accept "standard protections" such as a stoppage provision in a friendly agreement has prevented a NDA being signed. It also claimed that antitrust hurdles are the main barrier to the transaction in the U.S., but the two companies have been working on finding a buyer since March for more than 2,000 stores which are candidates for divestment. Seven & i, which is pursuing the takeover, has accelerated a revamp of its management and operations. This includes selling non-core lines of business, appointing a chief executive and proposing four board members. According to a recent report, Institutional Shareholder Services, a proxy adviser, has advised shareholders to support the appointment and new board members of Stephen Dacus as the new CEO. Seven & i stocks rose 2.7% on Thursday morning in Tokyo, beating the Nikkei. (Reporting from Urvi Dugar, in Bengaluru; Kaori Kaneko in Tokyo, Makiko Yamazaki in Tokyo, and Anton Bridge, in Tokyo. Editing by Alan Barona and Muralikumar Aantharaman, and Sonali Paul.
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S&P downgrades Woodside's credit rating to 'negative" after LNG investment decision
S&P Global Ratings changed the outlook of Australia's Woodside from "stable" to "negative" after the company made a final decision on investment for $17.5 billion in its Louisiana liquefied gas project. The rating agency stated that Woodside's decision to move forward with the project, without a substantial sell-down of the offtake exposure, has reduced the headroom for ratings. The agency has affirmed Woodside's 'BBB+ long-term issuer rating' and 'BBB+ long-term issuer ratings'. The Australian oil and Gas Company approved an LNG project worth billions of dollars in Louisiana earlier this week. They were confident that the U.S. government would be pro-fossil-fuel and there would be a strong demand. Woodside now holds a majority of the U.S. Project after selling a 40% stake to U.S. Infrastructure Investor Stonepeak. S&P stated that Woodside was exposed to market risks of the entire project, compared to its current effective interest of 60% in the project. Woodside's Chief Executive Officer Meg O'Neill reaffirmed this week that Woodside is seeking a further stake diluting in the LNG Project. S&P anticipates that Woodside's fund from operations to debt ratio will track at around 50% in the next few years. The ratings agency stated that future ramp-ups of the Louisiana project will likely reduce cash flow. This means the energy giant has very little capacity to cope with lower oil prices or cost increases at any of their major projects.
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London copper prices rise; weak US economic data and a strong dollar cap gains
London copper rose on Thursday after comments by U.S. president Donald Trump about a possible trade deal with China. This signaled a de-escalation of tensions with the world's largest metals consumer. However, a stronger dollar as well as weak U.S. economic data limited gains. As of 0228 GMT, the benchmark copper price on London Metal Exchange (LME), was up 0.5%, to $9,167.5 per metric ton. Trump said that on Wednesday he had "potential" deals with India and South Korea, and that there was a good chance the U.S. would make a deal China. Investors focused on signs that the trade war could be cooling off as they pushed the dollar higher on Thursday. The greenback price of commodities is more expensive for buyers who use other currencies. The fact that the U.S. economic growth was negative in the first three months also weighed on the mood. The U.S. economic contraction contracted for the 1st time in 3 years during the first quarter. Businesses rushed to import goods in order to avoid tariffs, which would have increased costs. This underscored the chaotic nature of Trump's trade policy. ANZ Research stated that "Incoming data continue to signal an economic downturn in the U.S. An increased recession risk is underscored by a slower pace of hiring and a smaller-than-expected drop in GDP." Other London metals saw aluminium rise 0.08%, to $2.401.5 per ton. Zinc fell 0.1%, to $2.589.5. Lead rose 0.03%, to $1.958. Tin advanced 0.2%, to $31,400. And nickel dropped 0.1%, to $15,400. The Mainland China Market will be closed on May 1st for a 5-day holiday to celebrate Labour Day. (Reporting and editing by Rashmi aich; reporting by Neha arora)
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Polls indicate that Australia's centre left Labor Party is likely to remain in power, as Trump worries weigh on the country.
Two opinion polls released on Thursday showed that Australia's center-left Labor Government is likely to remain in power after a tight national election at the weekend. Voters ranked Donald Trump's policies as their number one concern. According to a RedBridge/Accent poll conducted by News Corp on Thursday, Labor led the Liberal-National Coalition conservative coalition 53%-47% under Australia's preferential voting system for two parties. Votes are then distributed until a winner has been declared. The RedBridge survey showed that Labor could form a majority government or win the election on its own. This is a change from the February poll, which indicated that voters wanted Anthony Albanese to leave office. RedBridge's poll found that Millennials, Generation Z, and older voters are the ones who have changed their minds about Labor. The 18 million Australians who are enrolled in Australia's compulsory voting system consist of 43% Millennials and Generation Z, which is more than the influential Baby Boomer group. The backlash against Trump and his remarks about making Canada the 51st state of the United States fueled a major political comeback by Prime Minister Mark Carney’s Liberals earlier this week. Around 48% of Australians ranked Trump's uncertainty as their top concern, while 42% were wary of opposition plans to build nuclear power plants in the country to replace coal-fired energy. A poll online of 1,011 respondents was conducted from April 24 to 29. Peter Dutton, the leader of the opposition, has been campaigning on several policies that are seen as being modeled after Trump's Department of Government Efficiency set up by Elon Musk. He later abandoned a plan which would have required all government workers to return to their full-time jobs. Dutton's popularity has been dragged down by comparisons to Trump and his policies in Australia. A poll conducted last month revealed that Australians had lost faith in the United States. YouGov released a separate poll on Thursday that predicted a Labor majority. The party is likely to win up to 85 seats out of 150 seats in the lower house, while the opposition faces a net loss 11 seats, which would be its worst performance since 1947. Albanese has downplayed the poll results and said it would be an extremely close race. (Reporting and editing by Renju José in Sydney.
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After a selloff, oil prices are now easing up as supply concerns take hold
The oil prices rose slightly on Thursday after sharp drops the day before, driven by signs that Saudi Arabia can produce more and the fact that the U.S. economic contraction in the first quarter. Brent crude futures increased 16 cents OR 0.3% to $61.22 per barrel. U.S. West Texas Intermediate Crude Futures rose 6 cents, or 0.1% to $58.27. The two contracts closed Wednesday at their lowest levels in four years. Sources say Saudi Arabian officials have informed allies and experts in the industry that the kingdom does not want to support the oil market by cutting further supplies and is able to handle a long period of low oil prices. Three sources familiar with OPEC+ discussions told us earlier this month that several OPEC+ member countries will propose the group increases oil production in June by a significant amount for a second month in a row. The U.S. economy shrank for the first three-year period in the first quarter. Businesses rushed to import goods in order to avoid tariff-related costs, highlighting the chaotic nature of President Donald Trump’s trade policy. A poll suggests that Trump's tariffs make it likely the global economy will slide into recession in 2019. An oil price poll on Wednesday showed that OPEC+’s decision to reduce supplies and a demand outlook clouded with trade disputes between China and the U.S. will have a negative impact on prices in 2018. In April, a survey of 40 analysts and economists projected that Brent crude would average $68.98 per barrel in 2025. This is down from the estimate of $72.94 in March. U.S. crude oil is forecast to average $65.08 per barrel in 2025, down from last month's $69.16 estimate. The Energy Information Administration reported on Wednesday that U.S. crude stockpiles dropped unexpectedly by 2.7m barrels due to higher exports and refinery demands, as opposed to analysts' expectations, which were based on a poll, of a 429,000-barrel increase. (Reporting from Arathy S. Somasekhar, Houston Editing by Shri Navaratnam.)
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US House votes to rescind California's heavy-duty truck regulations
The U.S. House of Representatives voted on Wednesday to revoke the Environmental Protection Agency’s approval of California’s plans for a growing number of zero emission heavy-duty trucks. The House also voted on repealing an EPA waiver granted in December by former president Joe Biden to California's "Omnibus", low-NOx regulations for heavy-duty highway vehicles and off-road engines. Separately, the U.S. House will vote on Thursday against California's historic plan to stop selling gasoline-only cars by 2035. This plan has already been adopted by eleven other states. The EPA granted a waiver for the plan under the Clean Air Act in December. The question remains as to whether Congress has the power to revoke waivers by using the Congressional Review Act. In March, the The Government Accountability Office has said that waivers are not allowed. The CRA allows for repeal of the law with only a majority vote in the U.S. Senate. California Air Resources Board stated Wednesday that the votes were in violation of the Congressional Review Act, nonpartisan analyses by the U.S. Government Accountability Office (GAO) and the Senate parliamentarian. A spokesperson for the board said that "CARB will continue to carry out its mission of protecting public health in Californians affected by harmful air pollutants." Republican Representative John James stated that the rules will increase vehicle prices and burden truckers and working families across the nation. California, under an executive order signed by Governor Gavin Newsom in 2020, plans to mandate that by 2045, all medium- and heavy duty vehicles will be zero-emission wherever possible, moving away from diesel powered trucks. CARB reports that heavy-duty vehicles weighing more than 14,000 pounds (6.4 tons) account for over 50% of the nitrogen oxides and diesel fine particle pollution on California's roads. The NOx rule is expected to reduce heavy-duty vehicle emissions by 90%, and will result in $23 Billion in health benefits due to reduced illnesses. The largest U.S. source of transportation is U.S. greenhouse gas emissions Heavy-duty vehicles, with 23%, are the second largest contributors. (Reporting and editing by Stephen Coates; David Shepardson)
Sinking Tuvalu battles to keep maritime limits as water level increase
Tuvalu and its 11,000 people, who reside on nine atolls scattered throughout the Pacific, are lacking time.
Fukanoe Laafai want to begin a household. However she is struggling to reconcile her plans with rising sea levels that researchers anticipate will immerse much of her homeland by the time her kids would reach early adulthood.
I think we are about to sink, stated the 29-year-old clerical employee.
Tuvalu, whose mean elevation is simply 2 m (6.56 ft), has experienced a sea-level increase of 15 cm (5.91 inches) over the past three years, one-and-a-half times the worldwide average.
By 2050, NASA researchers job that daily tides will submerge half of the primary atoll of Funafuti, home to 60% of Tuvalu's citizens, where villages cling to a strip of land as narrow as 20 m in parts.
Life is already altering: Tuvaluans depend on rainwater tanks and a central raised garden for growing vegetables, because saltwater inundation has actually destroyed groundwater, affecting crops. A landmark climate and security treaty with Australia revealed in 2023 offers a path for 280 Tuvaluans yearly to migrate to Australia, starting next year.
On a recent see to Tuvalu and in interviews with more than a dozen locals and officials, Reuters discovered anxiety about rising seas and the possibility of permanent relocation.
4 of the officials exposed development on an emerging diplomatic technique to develop a legal basis for Tuvalu's. continued presence as a sovereign state-- even after it. disappears beneath the waves.
Particularly, Tuvalu aims to change the law of the sea to. keep control of a huge maritime zone with financially rewarding fishing. rights, and sees two pathways to achieve that: a test case in. the international maritime tribunal, or a United Nations. resolution, Reuters reporting discovered.
Disappointment with the international response to Tuvalu's plight,. even after the breakthrough deal with Australia, had actually led. Tuvalu's diplomats to move methods this year, two of the. officials stated.
The brand-new technique and methods have not been previously. reported.
Tuvalu's land totals up to just 26 square kilometres. However it. is dispersed throughout a far-flung archipelago, developing an. exclusive economic zone of some 900,000 square kilometres-- more. than twice the size of California.
In this close-knit and deeply Christian society, residents. told Reuters they feared relocation would imply the loss of their. culture.
Some will need to go and some will want to remain here, said. Maani Maani, 32, an IT employee in the main town of Fongafale.
It's a very hard decision to make, he added. To leave a. nation, you leave the culture you were born with, and culture. is whatever-- household, your sis, your bro. It is. everything.
For now, Tuvalu is attempting to buy time. Building of. sea walls and barriers to defend against worsening storm rises. is taking place on Funafuti, which is 400 m at its best. Tuvalu. has built 7 hectares (17.3 acres) of synthetic land, and is. preparing more, which it hopes will remain above the tides up until. 2100.
By then, NASA forecasts a sea-level rise of 1 m in Tuvalu, or. double that in a worst case, putting 90% of Funafuti under. water.
A NATION WITHOUT DRY LAND?
Having actually secured an exit course for its population, Tuvalu's. diplomats are fighting for legal certainty about what happens. when a low-lying island state is swallowed by the sea.
Under Tuvalu's strategy to protect such legal guarantee, some. residents would stay as long as possible, making sure a continued. existence to assist underpin the country's sustaining sovereignty,. according to 2 Tuvalu officials and the terms of the treaty. with Australia.
Dry land is another crucial requirement for statehood, so Tuvalu. wants to change the law of the sea. On Wednesday, the United Nations General Assembly is set up. to hold a top-level conference on sea-level rise, where Prime. Minister Feleti Teo will seek support from U.N. members for. Tuvalu's campaign to have its maritime boundaries and statehood. identified as long-term, Tuvalu officials state.
Teo will speak at the opening plenary, according to Tuvalu's. long-term secretary for foreign affairs, Pasuna Tuaga, along. with U.N. Secretary-General Antonio Guterres.
Tuvalu wishes to champion water level increase to be dealt with as a. standalone program, not crowded under the environment modification. discourse, Tuaga informed Reuters. It is an existential threat to. Tuvalu's statehood and survival of its identity.
The U.N.'s International Law Commission, which will provide a. report on sea-level rise next year, in July flagged its support. for a strong anticipation that statehood would continue where a. country's land was completely or partly submerged by rising sea. levels triggered by climate change.
The commission said some undefined members had actually argued. versus changing the U.N. Convention on the Law of the Sea,. preferring other avenues.
Tuvalu's tuna-rich waters are plied by foreign fishing. fleets that pay the nation about US$ 30 million in licence charges. each year-- its greatest profits source. Tuvalu likewise gets at least. US$ 10 million a year from offering its.tv web domain.
If the global community were to identify Tuvalu's. maritime boundaries as permanent, it would supply a financial. lifeline, Deputy Prime Minister Panapasi Nelesone said in an. interview.
Tuvalu has asked its diplomatic partners to sign joint. communiques supporting the conservation of its maritime. boundaries, though it states numerous have not officially responded.
We will continue to discuss that - as long as we live. here, Nelesone said.
Tuvalu's neighbours - the 18 members of the Pacific Islands. Forum - are on board. They have actually declared the area's maritime. borders are fixed. And the treaty with Australia says the. statehood and sovereignty of Tuvalu will continue.
Fifteen federal governments, including some in Asia and Europe, have. likewise signed bilateral communiques with Tuvalu agreeing that its. limits won't be altered by sea-level rise, Tuvalu officials. and legislators say.
But of the foreign jurisdictions that run fishing fleets. in the Pacific, only Taiwan, Tuvalu's diplomatic ally, and Fiji,. its neighbour, have signed such communiques. Tuvalu authorities. state this makes them anxious; they fret about future prohibited. fishing and the resultant loss of income.
NEXT STEPS
Simon Kofe, a former judge and present legislator who. represents Funafuti, in 2015 led changes to Tuvalu's. constitution to preserve its perpetual statehood. The modified. charter likewise tapes the maritime coordinates of Tuvalu's. exclusive financial zone.
Such steps assist to construct a file path to boost. Tuvalu's case must it look for a ruling on the effect of environment. modification on maritime limits in the International Tribunal on. the Law of the Sea, Kofe informed Reuters.
The more countries that acknowledge this legal proposal of. statehood being permanent, that adds to the development of. new traditional global law, he said.
Tuvalu is co-chair of the Commission of Small Island States. ( COSIS) on Climate Modification and International Law, established three. years ago with a statement that maritime zones use without. reduction in the face of environment modification.
In May, the group won an advisory opinion in the tribunal,. which said states have a commitment to secure the sea from. climate change. It was the tribunal's very first climate-related. judgment.
Donald Rothwell, a specialist in international maritime law at. the Australian National University, stated it was a significant. win that advances the position of Tuvalu and other small island. states impacted by climate change, but it was quiet on. maritime limits.
The law of the sea can progress by individual states signing. treaties with neighbours, local arrangements, and the. multilateral system reacting to evaluate cases, he said.
The International Law Association, in a June report on. sea-level increase, concluded that a resolution by the U.N. General. Assembly was the clearest way to supply certainty on maritime. limits and climate change.
The report's author, David Freestone, who is also a legal. adviser to COSIS, told Reuters the U.N. conference on Wednesday. will be important to determine the state of mind for a proposition to the U.N. General Assembly.
While Tuvalu's officials look for global guarantees,. locals are grappling with concrete effects of environment modification. - and the prospect of biding farewell.
Everyone is thinking about it, stated Maani, the IT worker. King tides are getting frightening, he stated, and he worries what will. occur to Tuvalu's elderly locals if those of working age. move first.
Laafai fears her community will be scattered, just as she. strategies to calm down.
Tuvalu is extremely caring, she said. Even if you don't have. much, you can show loved ones.
(source: Reuters)