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UniCredit wins court ruling to reverse its own UK injunction Against Gazprom unit
UniCredit won Tuesday a bid at a London court in order to overturn the injunction that the Italian bank had obtained against a Gazprom subsidiary in Russia, in light of the potential fine of 250 million euros. This highly unusual move highlights the problems UniCredit faces in Russia where it is still the second largest Western bank after Russia's invasion of Ukraine in 2022. In response to a question about the ruling on Tuesday, a spokesperson for UniCredit referred to its 2024 results, which stated that the case was "fully covered". Gazprom's RusKhimAlyans, also known as RusChemAlliance in court documents, had filed a number of lawsuits after Western sanctions stopped work on the liquefied gas plant in Ust-Luga at the Baltic Port in 2022. In August 2023, the company, which is owned 50% by Gazprom and refused to pay the bank guarantees associated with the project due to Western sanctions, filed a lawsuit against UniCredit. UniCredit secured an anti-suit order in London that prevented RusKhimAlyans pursuing their case in Russia. This was confirmed by the UK Supreme Court in 2017. UniCredit, however, asked the London Court of Appeal to reverse that order. RusKhimAlyans obtained its own injunction against lawsuits in Russia and exposed UniCredit to a possible fine in Russia. Lawyers for the bank argued that it had a total exposure to Russia of 710 million euro ($733 millions), which included RusKhimAlyans 460 million euro claim, and a fine of 250 million euros if it didn't try to enforce its own injunction. The German banks, Deutsche Bank and Commerzbank also took steps to reverse their own injunctions, despite receiving orders from the Russian courts to stop RusKhimAlyans from suing. In a written decision, Judge Geoffrey Vos stated that UniCredit had been forced to make this application. However, the bank decided it was best for its commercial interests. UniCredit has also been fighting an order from the European Central Bank to reduce its presence in Russia. In November, it suffered a setback.
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Aluminum and copper slump on fears of tariffs hitting growth
Investors worried about new U.S. trade tariffs, a possible global trade war and the impact on economic growth and metals prices have pushed down copper and aluminium prices. By 1100 GMT, the London Metal Exchange's (LME) three-month aluminium was down by 0.6% to $2,642.50 per metric ton, while copper fell 1.1% to $9344. U.S. president Donald Trump raised tariffs on imports of steel and aluminum on Monday by a substantial 25%, "without any exceptions or exclusions", which could spark a multi-fronted trade war. Dan Smith, the head of research for Amalgamated Metal Trading, said that tariffs could be damaging to the U.S. economic system. Smith was referring semi-fabricated aluminum because Trump's actions extend the tariffs also to downstream products which use metal made abroad. The second phase is the retaliation by other countries. The U.S. exports are growing as well. So they will still be hit by this. Aluminum imports from Canada, mainly, are a major source of aluminium in the U.S. The price of primary aluminum in the U.S. is based on LME benchmark plus Midwest premium. It was up 3% last week to 35 cents per lb. This was the highest level since May 2022 after a 10% jump on Monday. Since Trump's election, it has risen by 60%. We expect that any tariffs will result in higher prices for U.S. Manufacturers. This would be more likely to take the form of a higher U.S. Midwest Premium than a sustained increase in the LME Price," ANZ Research stated. On Monday, the premium between U.S. Comex Copper Futures and LME Contracts reached a new record high amid fears that U.S. Tariffs would be imposed on copper. The premium dropped to $800 per ton on Monday from $930, but is still twice as high as a week earlier. Lead fell 1.2% to 1,975.50, while tin dropped 0.8% to 30,900. (Reporting and editing by David Evans; Additional reporting in Shanghai by Violet Li)
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The license holder claims that the repeal of Greenland's uranium ban could bring back a massive rare earth project.
After the election next month, the mining company who owns the license to Greenland’s Kvanefjeld Deposit is hopeful that the new government will lift the ban on uranium mines. This could lead to the revival of one of the largest rare earth projects in the world. Last month, U.S. President Donald Trump expressed renewed interest in the acquisition of this strategically important Arctic Island. Daniel Mamadou, CEO of Energy Transition Minerals (the Kvanefjeld license holder), said in response to Trump's remarks: "I believe it puts everything related minerals back on track." According to Mamadou, Kvanefjeld ranks among the top three rare-earth deposits in the world outside China. It can supply up to 15% global production of critical components that are used to manufacture consumer electronics and weapons. The project was stopped four years ago after the Inuit Ataqatigiit Party won the election. They had promised to stop the Kvanefjeld Project due to the uranium and its proximity to populated areas. The government then passed a law that prohibited the extraction of uranium deposits with concentrations greater than 100 parts per million (ppm). Locals are concerned that the development of the mine could damage the fragile environment in the country. The mine is just a few kilometres away from Narsaq and near a UNESCO World Heritage Site. Mamadou met local Narsaq protesters when he visited this site last week. Greenland is currently in a caretaker government because elections have been called. The government is not fully operational. The ruling IA says that it still opposes the project and wants the uranium-ban to remain in place. Since the elections were called, Siumut has not stated if they want to repeal the uranium laws. They did not vote in favor of the ban on uranium 2021. Siumut's party constitution states that uranium can be used as a by-product in mining. The leader of Greenland’s largest labour union SIK, with over 8,000 members, supports the development Kvanefjeld. Energy Transition Minerals invested more than 1 billion Danish crowns (138 million dollars) into the project before it was halted. Since then, the company has filed an arbitration claim to seek compensation from both the Greenlandic state and Danish government. Mamadou stated that the outcome of the case - in our favor or against us - will determine the future attitude and view towards foreign investment into Greenland. The shares of the company saw a substantial boost after Trump's remarks, but they remain well below the levels before the enactment the uranium legislation. He said that the timing of Mamadou’s visit to Greenland was coincidental. Energy Transition Minerals is ready to provide a supply chain beyond China in the next three to five year, Mamadou stated. Shenghe Resources, China's largest shareholder, holds 7% of Energy Transition Minerals. Mamadou is optimistic about the economic impact of the project despite protests by locals near Kvanefjeld. He believes the project will give Greenland a boost in its fishing-dependent economy and could pave the way to the country becoming economically independent from Denmark.
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France increases soft wheat area estimates but is cautious about harvest outlook
The French Ministry of Agriculture increased Tuesday its estimate for the winter soft-wheat area for the harvest this year. This confirms a rebound after last year's planting, which was hampered by rain. However, the ministry warned that the soggy conditions may also affect the crop in 2025. After months of heavy rainfall, France, the largest grain producer in the European Union, harvested its smallest soft-wheat crop since 1980, which contributed to a drop in exports. The dry autumn allowed growers to complete the majority of sowings for 2025. However, January's downpours have left some fields wet. The ministry increased its estimate of the area for winter soft wheat in France, which is its main cereal crop. It was originally 4.51 million hectares in December. In a report, the ministry stated that the revised estimate increased by 10% in comparison to the area harvested in the year 2024. It also increased by 0.4% over the average of the last five years. The Ministry of Agriculture said that the amount of soft wheat planted was relatively low compared to the previous 30 years. It also noted that the planting conditions in the Centre-Val de Loire, an important crop belt, were similar to last year because the region was waterlogged. It added that soggy fields in various regions could impact winter cereal yields, or cause resowing of spring crops. The estimated area of winter barley was reduced to 1,21 million hectares, down from the 1.23 million acres projected in December. This is now 2.1% lower than 2024, and 3.5% less than the average for the past five years. Winter rapeseed's expected area has been reduced to 1,27 million hectares, down from 1,34 million last year, but still 6.2% higher than the average for the past five years. The area of winter crop sown for durum wheat (the variety used to make pasta) was 198,000 hectares. This is down from the 206,000 hectares predicted in December, and represents a 30-year low. In France, wheat and rapeseed constitute almost all winter crops. Barley is also a major spring crop.
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EU readys response to Trump's increase in steel and aluminum tariffs
After U.S. president Donald Trump's decision imposing tariffs on steel and aluminum imports, fears of a possible trade war grew. Trump signed proclamations on Monday evening, increasing the U.S. Tariff rate on Aluminium to 25%. He also eliminated country exceptions, quota agreements and hundreds of thousands product-specific exclusions from tariffs. A White House official confirmed that the measures would go into effect on March 4. Tariffs will be applied to millions of tonnes of steel and aluminum imports from Canada and Brazil. They also apply to South Korea, Mexico and other countries. Trump told reporters that the move would simplify tariffs for metals, "so everyone can understand what it means." "It is 25%, without exemptions or exceptions." All countries are included, regardless of where they come from. Trump announced that he will announce reciprocal tariffs against all countries who impose duties on U.S. products over the next two-days. He also said that he is looking into tariffs for cars, semiconductors, and pharmaceuticals. When asked about the threats of retaliation from other countries in response to his new tariffs Trump replied: "I'm not bothered." EU TO RESPOND Ursula von der Leyen, President of the European Commission, said that she regretted deeply the U.S.'s decision. She added that tariffs are taxes that are bad for businesses and even worse for consumers. Over the last decade, EU steel exports have averaged around 3 billion euros ($3.1billion) per year to the U.S. "Unjustified Tariffs on the EU won't go unanswered. They will trigger firm, proportionate countermeasures." "The EU will protect its interests", she said in a press release. Von der Leyen didn't provide any details about the response. One option is to reactivate tariffs that the EU imposed on the United States in 2018, but were suspended as part of a truce between von der Leyen at the time and Joe Biden. Tariffs on U.S. goods such as motorcycles, orange juice and bourbon are suspended by the EU until March 31. Maros Sfcovic, EU Trade chief, described the U.S. ruling in an address to the European Parliament. "lose-lose scenario". Trump's latest trading salvo drove gold prices to record highs on Tuesday, on the back of safe-haven demand. The precious metal hit $2,942.70 during Asian trading before easing slightly to $2,909.49 at 0916 GMT. CANADA HIT BACK According to data from the American Iron and Steel Institute, steel imports will account for approximately 23% of American consumption by 2023. The largest suppliers are Canada, Brazil and Mexico. In 2024, Canada's abundant hydropower resources, which aid in its metal production and exports, accounted nearly 80% for the U.S. imports of primary aluminum. On Tuesday, Canada's Justin Trudeau called the tariffs unacceptable. Trudeau, speaking on the sidelines at the Paris Artificial Intelligence Summit, said Canada would highlight the negative impact the U.S. Tariffs have and that if needed its response would firm and clear. He said that Canadians would stand strong and firmly up if they needed to. Trump will also impose a North American standard that requires steel imports be "melted, poured", and aluminum imports be "smelted, cast", within the region. This is to stop U.S. imports from China and Russia of metals with minimal processing to avoid other tariffs. According to the U.S. government, China is responsible for a large part of the excess capacity in the steel industry. The U.S. says that China's subsidised steel production forces other countries export more, and this leads to the transshipment of Chinese metal through other countries and into the U.S. in order to avoid tariffs or other trade restrictions. After the losses suffered by Asian and European steelmakers, shares in Chinese steelmakers fell further on Tuesday. Meanwhile, stocks in U.S. aluminum and steel makers rose ahead of proclamations.
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The U.S. gold demand is causing India's gold leasing rates to rise to a record.
Industry officials reported that gold leasing rates in India had doubled to a new record within a single month, after the rates on the overseas market jumped because of a shortage as banks from around the world diverted the precious metals to the United States. The second largest gold consumer in the world, Kalyan, is experiencing higher jewellery production costs. This could affect jewellers like Titan, Kalyan, and Tribhovandas Bhimji Zaveri. Shekhar Bhahandari, President and Business Head of Kotak Mahindra Bank, said that gold leasing rates have doubled over the past month. They could continue to rise, he added. He said that leasing rates would remain high for the next few weeks, given the uncertainty surrounding geopolitics, the trade war and the higher prices of futures on CME compared to the spot market. Reports have revealed that global bullion banks fly gold to the United States via London, Switzerland and Asian hubs like Dubai and Hong Kong in order to take advantage of the high premium on U.S. spot gold prices over U.S. futures. Gold leasing rates have risen in London, which is the world's largest over-the-counter market. In India, banks that rely on imports borrow gold from foreign banks and lend it to jewellers. Bhandari says that rising borrowing costs in India have increased leasing rates proportionally. Amit Modak is the chief executive officer of PN Gadgil and Sons in Pune, a jeweller based on the west coast. "Now they don't know how to deal with it." A Mumbai-based dealer for a bullion-importing bank stated that the gold-supplying banks have not brought any gold into India since the market has been in discount. Deliveries on COMEX, however, fetch premiums, according to a Mumbai-based seller. On Monday, the premium of COMEX futures prices over spot price widened to $28 per ounce. In India, discounts were as high as $24. The vaults of bullion banks in major Indian cities are almost empty. Banks have taken their gold to the United States, and they are no longer interested in bringing the gold back to India, given the current discounts. Due to the lack of demand, Indian discounts could have reached $100. "But a supply shortage is preventing them from skyrocketing," said he. (Reporting and editing by Clarence Fernandez; Additional reporting by Siddhi Nyak)
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Vance warns Europeans against heavy regulation
On Tuesday, U.S. Vice-President JD Vance warned Europeans that their excessive regulation of artificial intelligent could strangle technology. He also rejected content moderation and called it "authoritarian" censorship. As AI technology has taken root, the mood towards it has changed. It is no longer a time of concern about safety, but rather one of geopolitical competition as countries compete to develop the next AI giant. Vance was forthright when he outlined the Trump administration’s America First agenda. He said that the United States intended on remaining the dominant force in AI, and strongly opposed European Union’s much tougher regulatory approach. Vance said at an AI summit held in Paris that "we believe excessive regulation of AI could kill a transformational industry". He added: "We are very convinced that AI should be free of ideological bias, and that American AI won't be co-opted to become a tool used for authoritarian control." Vance stated that the cost of complying with Europe's GDPR (Global Data Protection Regulation) online privacy regulations, also known as the EU's Online Privacy Rules, was endless for smaller companies. The tech world is waiting to see if the Trump administration will ease up on recent antitrust enforcement, which has seen the U.S. sueing or investigating the biggest industry players. Vance stated that the U.S. will champion American AI, which is developed by big players. He added, "Our laws keep Big Tech, Little Tech, and other developers on an equal playing field." He said that people should be sceptical when the incumbents ask for safety regulations which could cement their power. Last year, European legislators approved the AI Act of the EU. It is the first comprehensive set rules for the technology in the world. Some capitals and tech giants want it to be applied leniently. The first day of the summit, the host French President Emmanuel Macron urged Europe's leaders to reduce red tape in order to allow AI to flourish across the region. This was after the Trump Administration's removal of AI safeguards revealed how different the strategies for AI are in the United States and Europe. Vance leads the American delegation to the summit where nearly 100 countries, including China, India, and the United States, will gather to see if they can reconcile their competing national interests. (With additional reporting by Sudip K-Gupta; Florence Loeve, Brice Makini and Elizabeth Pineau. Writing by Richard Lough; Ingrid Melander. Editing by Catherine Evans.
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Indian benchmarks have their worst session in the last three weeks due to US tariff fears.
India's benchmark indices fell on Tuesday. It was their worst session in the last three weeks. Fears of reciprocal tariffs by the U.S. were to blame. The NSE Nifty50 closed 1.32% lower, at 23,071.8. Meanwhile, the BSE Sensex dropped 1.32%, to 76,293.6. Blue-chips dropped for the fifth consecutive session, and their largest single-day percentage decline since January 21. In five sessions, the indexes lost around 3%. The benchmarks have fallen about 12% from the record highs they reached on September 27, 2024. Meanwhile, smallcap and midcap indices are moving into bear market territory. They are down 20% from their respective all-time-highs of December 12 and September 24. The more domestically-focussed small and midcaps indexes tumbled 3.5% and 3% each on the day, taking the combined drop from their record highs to 18.5% and 16.5%, respectively. Analysts believe that small and midcap stocks could face further pressure from investors as the earnings growth does not justify high valuations. In the meantime, U.S. president Donald Trump raised tariffs on imports of steel and aluminum to 25% on Monday and announced plans to impose reciprocal levies against several countries within two days. Multiple brokerages have said that India is likely to be the country most affected by reciprocal tariffs because of its large tariff differentials. Trump's tariff threat continues to harm market sentiment and trigger selling pressure. Vinod Nair is the head of research for Geojit Financial Services. The testimony of Federal Reserve Chair Jerome Powell later in the afternoon will be closely evaluated for its commentary on U.S. Tariffs and Inflation. Investor sentiment has been affected by both tariff concerns and the slowing of domestic corporate earnings. Eicher Motors, the maker of Royal Enfield motorcycles, was the biggest percentage loser among individual stocks. This is because it missed quarterly profit and margin expectations.
IKAR reduces its 2024/25 forecast for wheat exports to 43 million tonnes
IKAR, a Russian consultancy, cut its forecast for 2024/25 of wheat exports to 43 million metric tonnes from 43.5 millions tons on Monday. The main reasons were low stocks and low profit margins.
Dmitry Rylko, IKAR's head, said: "This is connected to our assessment of availability of wheat of export quality and distribution. High stocks beyond the Urals but relatively low in south and central Russia."
He said that the low margins of exporters were also responsible in part for the lower forecast.
IKAR has also reduced its estimates of 2025 wheat production to 82 millions tons, down from 84 in the baseline scenario. The reason given was that freezing temperatures forecast in an unseasonably warm winter could have a negative impact on crops.
Rylko stated that "we see that there is no strong or proper precipitation in January-February, especially in the northern and central parts of the Southern region of the Country."
"The coming frosts will not be very strong but may still affect the condition of plants that are already weak."
IKAR has also reduced its estimate of wheat production to 77 millions tons, down from 79 in a pessimistic case and to 87 in a positive scenario. Reporting by Olga Popova, Writing by Gleb Brnski, Editing by Louise Heavens & David Goodman
(source: Reuters)