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EU Commission to discuss US tariff strategy and trade with industries
A letter of invitation seen by revealed that the European Commission had invited the most affected sectors by U.S. Tariffs to a meeting in person on Thursday. The commission is weighing new trade agreements and countermeasures. Participants from the auto and steel industries will be invited to the meeting, which is being led by Stephane Sejourne, the industry chief for the Commission. Ursula von der Leyen, the Commission president, had called executives from the autos and pharmaceutical industries as well as metals industry. In the letter of invitation, it was stated that the meeting would be held to determine what impacts EU companies have already experienced in the "short- and medium-term" and how best to respond in terms "of sector-specific policies and counter-tariffs as well as non-tariff countermeasures." Washington has imposed sector-specific tariffs on steel, aluminum and vehicles, in addition to reciprocal tariffs. The Commission is worried about the impact of the upcoming measures on "pharmaceuticals and minerals, as well as copper, semiconductors and lumber." The Commission warned of possible additional tariffs which could hit EU companies who still use Venezuelan crude oil "directly" or indirectly. The Commission is looking for input from the industry to determine the best tool to use, whether it be free trade or partnership. The letter stated that "the two-hour meeting is an opportunity for the EU to exchange views on the impact the tariffs have on different industrial sectors, as well as measures it could take to reduce their impact." Reporting by Julia Payne, Editing by David Gregorio
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Euro up as stocks ease amid US-China trade war
The major stock indexes declined on Tuesday after the United States announced that 104% tariffs on imports from China would take effect shortly after midnight. However, the euro and European equity futures rose following reports that Germany's parties had reached an agreement on a coalition. However, two people who knew the situation said that the German coalition was still not agreed upon. Investors were optimistic earlier in the morning that Washington would be willing to negotiate some of its aggressive trade tariffs. The Trump administration is also It is important to begin discussions with other trading partners that are being targeted by Donald Trump's tariff plan. Since Trump announced his sweeping tariffs late on Wednesday, stocks have suffered heavy losses. Worries are growing that a trade war could push the global economy into recession. Germany's NTV reported Germany's conservatives under chancellor-in-waiting Friedrich Merz on Tuesday reached a deal with the centre-left Social Democrats (SPD) to form a government. The euro last rose 0.61% to $1.0971. EuroSTOXX Futures in Germany rose 0.72%. DAX Futures increased 0.55%. CAC 40 Futures increased 0.43%. Bund futures have trimmed their losses. Wall Street saw the Dow Jones Industrial Average fall 337.84, or 0.89% to 37,627.76. The S&P 500 dropped 81.11, or 1.60% to 4,981.14, and the Nasdaq Composite declined 339.48, or 2.18% to 15,263.78. The MSCI index of global stocks fell by 2.43 points or 0.33% to 743.05. The U.S. trade war with China escalated, causing recession fears and a drop in oil prices. Brent futures dropped $1.39 or 2.16% to settle at $62.82 per barrel. U.S. West Texas Intermediate Crude Futures fell $1.12 or 1.85% to settle at $59.58. Spot gold dropped 0.13% to 2,978.68 dollars an ounce. Investors anticipate the release of U.S. quarter earnings reports in this week. Adam Sarhan, CEO of 50 Park Investments, New York, said that positive results could be a catalyst for stocks. JPMorgan Chase will be the first to report results, followed by Citigroup and Wells Fargo. Jamie Dimon, JPMorgan Chase's CEO, has warned trade wars can have long-lasting negative effects. These include inflation and recession.
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US stocks fall as US tariffs on China are imposed; the euro rises after news of German coalition
The U.S. stock market indexes fell on Tuesday, as the United States announced that 104% of import duties from China would take effect shortly after midnight. However, the euro and European equity futures rose following reports that Germany’s political parties had reached an agreement on a coalition. Investors were optimistic earlier in the morning that Washington would be willing to negotiate some of its aggressive trade tariffs. The Trump administration is also It is important to begin discussions with other trading partners that are being targeted by Donald Trump's tariff plan. Germany's NTV reported Germany's conservatives under chancellor-in-waiting Friedrich Merz on Tuesday reached a deal with the centre-left Social Democrats (SPD) to form a government. However, two people who are familiar with the matter said that an agreement has not been reached. Futures for the EuroSTOXX50 index in Germany rose 0.72%. DAX futures increased 0.55%, and CAC futures increased 0.43%. Bund futures have trimmed their losses. The dollar was up by 0.41% to $1.0948. Wall Street saw the Dow Jones Industrial Average rise 62.46, or 0.16% to 38,028.03, while the S&P 500 dropped 13.34 points or 0.27% to 5,048.75, and the Nasdaq Composite declined 79.19, or 0.51% to 15,522.91. The MSCI index of global stocks rose by 4.27 points or 0.57% to 749.75.
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Meloni will meet Trump for tariff talks on April 17, 2019.
Her office announced on Tuesday that Giorgia Mello will meet Donald Trump, the U.S. president in Washington, on April 17, to discuss tariffs imposed by Trump on imports from the European Union. Trump has a policy of imposing tariffs that are 25% on imports of steel, aluminium and automobiles. The tariffs will be a broader 20% for all other goods starting Wednesday. Meloni said she backed an offer by the European Commission for a "zero to zero" tariff agreement to avoid a trade conflict with the United States. Meloni stated in a staff-released speech that "This is a negotiation which must see us at all levels committed, which sees and commits us. I am committed as I will be there in Washington on April 17, next year," Meloni. Meloni, a nationalist who has a deep admiration for Trump is Battle to reconcile Analysts say that there is a growing gap between Washington's ideological instincts and Italy’s strategic ties with the European Union. She is under pressure also to defend Italy's export-driven industry, which last year ran a 40-billion-euro ($43.75-billion)trade surplus with the United States -- the third-largest in the European Union after Germany and Ireland. Italy's total exports are 10% of its total. "I believe (tariffs are) an absolutely wrong decision by the Trump administration. Western economies are interconnected. Meloni stated that such protectionist policies would hurt Europe just as much as they would the U.S. EU FUNDS Meloni stated that her government will discuss alternative ways with the European Union to use funds already allocated to EU to offset the negative impact expected of the tariffs. She said, "We are committed in using all resources available, beginning with those which do not impact public finances." She said that although no additional borrowing is currently planned, 14 billion euro could be derived from a revamp of Italy's EU supported post-COVID Recovery Plan, and an additional 11 billion from EU Regional Development Funds. Another 7 billion euro was expected to be spent using EU funds in order to combat climate change. The government is Prepare to cut Two sources with knowledge of the situation said that the U.S. Tariffs have caused the uncertainty in the economic growth forecasts for this year and next. Sources said that the multi-year budget plan for Italy, which is due to be released on Wednesday, predicts a 0.6% increase in gross domestic product this year. This is down from the 1.2% goal set last September. Next year's GDP is expected to be +0.8% down from the previous target of +1.1%. ($1 = 0.9414 euros) (Reporting and writing by Giuseppe Fonte, Editing and proofreading by Crispia Balmer)
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US oil, biofuel group recommends 5.25 billion gallons in biomass diesel mandates, sources say
Two sources with knowledge of the matter reported that a U.S. biofuel and U.S. coalition has recommended the Environmental Protection Agency to propose federal mandates on biomass diesel blending in 2026, at 5.25 billion gallon, which is a significant increase over previous mandates. Sources said that the coalition recommended a total federal mandate for biofuel blend mandates of 25 billion gallons by 2026. The coalition led by the American Petroleum Institute (API), a major U.S. oil industry trade group, gave the figures to EPA at a recent meeting. EPA will release a proposal covering 2026 and 2027. This was previously reported. The Coalition's request of 5,25 billion gallons for biomass-based diesel mandates is slightly lower than the range between 5.5 billion and 5.75 billion gallons that was considered before the meeting by the. Previously, the EPA had set the biomass-based diesel mandates at 3,35 billion gallons for 2025. API refused to comment on numbers in particular, while the EPA didn't respond to a comment request. The U.S. Renewable Fuel Standard requires oil refiners to blend billions gallons worth of biofuels in the nation's fuel or purchase tradable credit from those who do. Reporting by Stephanie Kelly and Jarrett Renshaw, both in New York; editing by Mark Porter and Matthew Lewis.
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Venezuela restarts El Palito’s fluid catalytic cracked to offset the largest refinery’s problems
Sources close to the company's operations on Tuesday said that Venezuela's PDVSA, a state-owned oil company, is restarting the fluid catalytic cracked (FCC) at its El Palito refinery, which was shut down for 11 months. This will partially offset a suspension of key refinery units due to an electrical blackout. PDVSA is increasing domestic refining in order to avoid a fuel crisis. The U.S. government has tightened sanctions against the energy sector of the country, which prevents it from importing replacement parts and equipment necessary to maintain and upgrade its refining units. Venezuela's largest refinery, the 645,000-barrel-per-day Amuay, has been restarting several operational units since a blackout late last week, but its FCC is still out of service, limiting the volume of gasoline blendstock the country can produce. One source, who spoke on the condition of anonymity, said: "That's the reason they're restarting El Palito cracker." It's already producing 26,000. bpd catalytic naphtha. El Palito, Venezuela's smallest refining facility, has a capacity of 146,000 bpd for crude processing. The previous attempts to restart the FCC were unsuccessful. Now, workers are trying to produce up to 35,000 bpd blendstock. Sources say that the 955,000-bpd Paraguana refinery center, which includes Amuay & Cardon refineries and four crude distillation units, was processing 237,000 bpd or 25% of the installed capacity as of Tuesday. PDVSA didn't immediately respond to a comment request. The state oil company is trying to provide more crude and feedstock Cardon Petropiar will be reorganized as part of the plan to reorganize its operations once a U.S. licence for Chevron Venezuela's unit expires in a month. This will leave all operations to PDVSA. A separate source reported that Venezuela is also trying to reactivate an important thermoelectric plant in the central region of the country to reduce blackouts and power rationing. Reporting by Staff; Editing by Mark Porter & Paul Simao
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Codelco CEO: Codelco plans to return to the bond market and aims at higher end of copper production range
Ruben Alvarado said that Codelco's CEO, Ruben, believes the company will reach the upper limit of its production range in this year. He expects to achieve 1.39 million metric tonnes. Alvarado stated that the world's biggest copper producer intends to return to bond markets but is still evaluating the timing. We know that we have to get to the market. "We'll be there for sure, but we have to decide the exact date," he said on the sidelines of the CRU/CESCO World Copper Conference. Our bond prices are very competitive. "We are very careful with our investment grade. We believe that we still have room to move ahead with financing our project." Codelco has managed to increase production in 2024 after 2023 saw it hit a 25-year low due to delays and operational issues. Alvarado expects to improve performance following a better quarter than the previous year. He said that this year they were aiming for 1,39 million tonnes. He added, "We are focused on doing the right thing and ensuring operational continuity. We're also very careful about safety." Alvarado said that the company has not yet decided whether it will send any new spot copper shipments into the U.S. as they did in the past. first quarter When customers tried to get ahead of the expected U.S. import tariffs. He said that the main reason for increasing shipments to the United States was to meet the needs of long-term clients. (Reporting and editing by Alexander Villegas, David Gregorio and Fabian Andres Cambero)
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JSW, a Polish miner, suffers a net loss of $500,000 due to lower coal prices and weak demand
The company reported on Tuesday that the decline in coking coal prices, and a weaker demand for coal led to a loss of 7,24 billion zlotys (1.85 billion dollars) in 2018 from a profit of 993.9 millions zlotys (993.9 million dollars) made by JSW between 2023 and 2018. The results were in line with the preliminary data that was reported by the company at the beginning of March. Why it's important JSW is Europe's largest coking coal producer, essential to steel production. The EU has listed coking coal as a critical raw material because steel is essential for the construction of renewable energy sources and other infrastructure. The EU wants to guarantee a sustainable and secure supply of the materials listed. CONTEXT JSW will be hit by the falling prices of coking coal, a weaker demand as a result of lower steel production and increased competition with non-European suppliers, such as China and Indonesia, in 2024. The company has proposed to not pay a dividend in 2024. In 2018, it stopped paying dividends. By the Numbers JSW's revenue fell to 11,33 billion zlotys from 15,34 billion zlotys by 2023. This was mainly due to the lower coal price and decreased demand. The company reported a 6.50 billion-zloty loss for the year, as compared to earnings of 4.56 billion-zlotys on the same basis in 2023.
Wall St Week ahead-Shell-shocked Markets brace themselves for more tariff turmoil
After the worst week in U.S. stock markets since the start of the coronavirus epidemic five years ago, investors are on edge about the potential fallout of President Donald Trump's import levies.
Investors are looking for signs that the stock market is nearing a bottom, at least in the short term. Trump's tariffs have shook global asset prices. The S&P 500 index registered its largest weekly decline since March 2020, while the Nasdaq Composite ended Friday down over 20% from its record high in December. This confirms that the tech-heavy index is currently in a bearish market. The Dow Jones Industrial Average ended the week well below its record high from December, indicating a correction.
After Trump's Wednesday announcement, the markets were in a tailspin and fears of a recession arose.
Jeffrey Palma is the head of multi-asset solution at Cohen & Steers. There are many questions regarding tariffs and retaliatory duties, as well as where the situation ends.
The S&P 500 closed the week down by over 17% compared to its all-time high of February 19. According to LSEG, in the two days after Trump's announcement of tariffs, S&P companies lost $5 trillion in value. This is the biggest amount in two days.
Matthew Miskin is co-chief investment analyst at John Hancock Investment Management. This kind of decline... could lead to a weakening in economic activity.
Trump's tariffs will be the most significant trade barriers for more than a hundred years. They include a baseline 10% tariff on all imports, and targeted higher duties on dozens countries.
China responded with 34% additional tariffs on U.S. products on Friday, intensifying the trade war.
Investors have downgraded economic and earnings predictions, with JPMorgan analysts increasing the risk of global recession to 60% this year from 40% previously.
Investors hoped that Trump would make deals with certain countries in the coming days to reduce tariffs. Some investors were skeptical that Trump would make any concessions.
Citi strategist Scott Chronert wrote in a Friday note that despite Trump's chance to pivot, the "window is closing and some damage may have already been done to consumer and business trust regardless of what the final negotiated point is,"
The Cboe Volatility Index (an options-based measure for investor anxiety) has reached its highest level since April 2020.
The American Association of Individual Investors' survey showed a bearish mood at 61.9%. This is the highest level since 2009.
Investors are cautious of gloomy financial forecasts, as tariffs have clouded the outlook. U.S. firms will begin reporting their quarterly results in earnest this week. According to LSEG IBES, S&P earnings should have risen 7.8% from the previous period in the first quarter.
Major banks JPMorgan & Wells Fargo are due to report on April 11, 2019.
In a note published on Friday, RBC Capital Markets analysts cut their earnings forecasts for 2025.
Keith Lerner is co-chief investment officers at Truist Advisory Services. He said that the market's decline and growing pessimism may mean that news stories are less likely to be able to boost stocks.
Lerner explained that "if you had something even remotely positive at this time, you might see a spark in the short term because people are preparing for a negative outcome."
The consumer price index report for the month of March, due out on Thursday, could also help establish a baseline in terms of inflation in the United States, before the tariffs are implemented, which will likely increase the pressure on prices.
Investors are preparing for more Federal Reserve rate cuts in 2019 in response to the announcement of tariffs. According to LSEG, Fed fund futures account for 100 basis point of easing in 2019.
Fed Chair Jerome Powell stated on Friday that tariffs were "larger than anticipated" and the economic fallout will likely be as well, including higher inflation, slower growth and.
Palma of Cohen & Steers said that it is important for the markets to be stable in the next few days.
Palma stated that "we've had a couple of really, really big market days." What we don't want is for this to start a vicious cycle which destabilizes our financial system. Reporting by Lewis Krauskopf; additional reporting in San Francisco by Noel Randewich; editing by David Gregorio
(source: Reuters)