Latest News
-
Wall Street Journal, May 1,
These are the most popular stories from the Wall Street Journal. These stories have not been verified and we cannot vouch their accuracy. Tesla board members reached out to executive search firms about a week ago in order to find a successor to CEO Elon Musk. A federal judge has ruled that Apple violated willfully an antitrust injunction regarding App Store restrictions. The case was referred to federal prosecutors who are now conducting a criminal contempt investigation. The Trump Administration is allocating $500,000,000 to a project that will be led by two scientists who were recently promoted to high-ranking positions at the National Institutes of Health. This move away from Covid-19 next-generation vaccines. Sundar Pichai, Google CEO, urged U.S. district judge Amit Mehta on Wednesday to reject "extraordinary proposals" from the Justice Department, such as forcing the sale Chrome and sharing search data between rivals to curb Google's dominance in online search. The Trump administration has finalized an agreement with Ukraine that grants the U.S. access its mineral resources. It resolved last-minute disagreements to achieve an agreement aimed to offset U.S. defense support for Ukraine against Russia. House Republicans are considering plans to increase restrictions on tax deductions that apply to the highest-paid worker's compensation of companies. The proposals could be included in a tax and spending bill worth billions.
-
Sources say that India's JSW Steel has difficulties importing coal from Mongolia.
Three sources with knowledge of the situation said that JSW Steel, India’s largest steelmaker in terms of capacity, had hit a roadblock when sourcing coal from Mongolia because suppliers were unresponsive and there was a bottleneck on transport. The company had planned to import 2,500 tons of steel from Mongolia while the Steel Authority of India hoped to import 75,000 tons. India, which is the second largest producer of crude iron and steel in the world, imports 85% of coking coal, with Australia providing more than half. The country's steel demand has soared due to rapid economic growth and increased infrastructure spending. India is exploring partnership opportunities with Mongolia to diversify the supply chain of coking coal, a key ingredient in steelmaking. Industry officials identified Mongolia as a source for high-grade coal at lower prices. One source, who declined to be named due to the sensitive nature the discussions, said: "There has been no response from Mongolian side and we find it difficult." The source stated that "on the one hand, the transport from Russia has become backed up and on the opposite, it might not be possible to get the product from China in a sustainable manner." Sandeep Poundrik, the Steel Secretary, said that sourcing materials from Mongolia was difficult due to its landlocked status. JSW Steel and the Mongolian Prime Minister's Office did not reply to requests for comment. Since the clash of troops in 2020 along their Himalayan borders, where at least 20 Indian and four Chinese soldiers were killed, relations between India and China have deteriorated. There have been signs of thawing, with neighbours agreeing to resolve their trade and economic disputes in January. Source: JSW Steel does not plan to increase its imports of coking coal from Russia. They said, "We do not want to increase our exposure in a single geography." The company sources its coking coal also from Australia, United States of America and Mozambique. Last week, Chief Executive Jayant Acharya said that JSW Steel would consider buying assets of coking coal based on their commercial and strategic viability. The steel secretary stated last week that India's imports of coking coal will increase due to the limited supply of this key ingredient in steelmaking, as the country ramps up its steel production capacity. (Reporting and editing by Saad Saeed; Neha Arora)
-
Oil prices steady after US economic contraction and possible Saudi supply increase
The oil prices stabilized on Thursday, a day following a sharp decline caused by the signs that Saudi Arabia may increase its output, and data showing the contraction of the U.S. economy, the largest oil consumer in the world. Brent crude futures dropped 6 cents or 0.1% to $61 per barrel at 0730 GMT. U.S. West Texas Intermediate Crude Futures fell 12 Cents, or 0.2% to $58.09. WTI reached its lowest level since March 2021. Sugandha Sasdeva, founder and CEO of SS WealthStreet in New Delhi, said that the "path of least resistance" remains to the downside. Sachdeva stated that "the dual impact of deteriorating oil demand and looming expansion in supply has created a negative outlook for crude. Brent crude appears vulnerable to testing $55 per barrel." Sources say that Saudi Arabia has told allies and experts in the industry that it does not want to support the oil market by cutting supply and is able to manage a long period of low prices. Three people familiar with OPEC+ discussions have reported that several OPEC+ countries will propose the group increase output in June by a significant amount for a second month running. Eight OPEC+ nations will meet on 5 May to decide a plan for June's output. Sachdeva stated that "any surprise in the speed or scale of adjustments to production could have a significant impact on volatility in sessions ahead." 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 President Donald Trump’s trade policy. A poll suggests that Trump's tariffs make it likely the global economy will enter recession this year. An oil price drop is expected this year due to a demand outlook that's clouded by trade conflicts and OPEC+ increasing supply. This was revealed in a Wednesday poll. Kpler, an analytics firm, has revised their 2025 global oil consumption growth forecast from 800,000 barrels per day to 640,000 bpd. They cited rising Sino-U.S. tensions and weak Indian demand. In April, 40 economists and analyst predicted that Brent crude would average $68.98 per barrel in 2025 compared to the estimate of $72.94 in March. The analysts expect U.S. oil to average $65.08 per barrel, rather than the $69.16 last month. The Energy Information Administration reported on Wednesday that U.S. crude stockpiles dropped by 2.7 millions barrels due to higher demand for exports and refineries. This was compared to analysts' expectations, which were based on a poll. They expected a 429,000-barrel increase. Reporting by Mohi Narayan from New Delhi, and Arathy Sommesekhar from Houston; editing by Shri Navaratnam & Christopher Cushing
-
What is the status of Ukraine's essential minerals?
Ukraine and the United States signed a deal on Wednesday that was heavily promoted by U.S. president Donald Trump. The agreement will grant the United States access to new Ukrainian mineral deals and funding for investment in Ukraine's rebuilding. Here is a list of critical minerals in Ukraine, including rare Earths and other natural resources: What are rare earths and what do they serve for? Rare earths is a grouping of 17 metals, used in the production of magnets for electric cars, cell phones and missile systems. There is no substitute. The U.S. Geological Survey considers rare earths, such as nickel and lithium, to be crucial. Minerals are vital for industries like defence, high-tech appliances and aerospace, as well as green energy. What mineral resources does Ukraine have? According to Ukrainian data, Ukraine has 22 of the 34 critical minerals that the European Union identified. These include ferro-alloy, industrial and construction materials as well as precious and nonferrous metals and rare earth elements. According to the Institute of Geology of Ukraine, the country has rare earths like lanthanum, cerium and neodymium. These are used for wind turbines, electric vehicles and batteries. Erbium and yttrium can be used to produce lasers, nuclear power and other applications. EU-funded research indicates that Ukraine also has scandium deposits. The data is not classified. World Economic Forum said that Ukraine is a major potential supplier of lithium as well as beryllium and other metals such as gallium, zirconium. State Geological Service of Ukraine said that Ukraine has one Europe's largest lithium reserves estimated at 500,000 tons - essential for batteries, ceramics and glass. Titanium reserves are located mainly in the northwestern and central parts of the country, whereas lithium deposits are found in the east, centre and southeast. The graphite reserves in Ukraine, which are used to make electric vehicles batteries and nuclear power reactors, account for 20% of the global resource. Deposits are located in the west and centre. Ukraine has also significant coal reserves. However, most of them are under Russian control in the occupied territories. According to mining analysts and economists, Ukraine does not currently have any rare earth mines that are commercially active. China is the largest producer in the world of rare earths, as well as many other essential minerals. WHAT DO WE KNOW OF THE DEAL After months of often fraught negotiations and uncertainty, the two countries signed an accord in Washington. The agreement establishes a fund of joint investments for Ukraine's rebuilding as Trump attempts to achieve a peaceful settlement in the three-year old war between Russia and Ukraine. In a photo published on X, U.S. Treasury Sec. Scott Bessent was shown with Ukrainian First Deputy Premier Yulia Shvyrydenko signing the agreement. The Treasury said that the deal "clearly signaled the Trump Administration's dedication to a sovereign, free and prosperous Ukraine." Svyrydenko stated on X, that Washington will contribute to the fund. She said that the accord also provides new assistance such as air defense systems for Ukraine. The U.S. didn't directly respond to that suggestion. Svyrydenko stated that the agreement allowed Ukraine to "determine where and what to extract" as well as that Ukraine's subsoil remained its property. Svyrydenko stated that Ukraine does not have any debt obligations towards the United States as a result of the agreement. This was a crucial point in the long negotiations between the countries. She said that the agreement was also in line with Ukraine's Constitution and its campaign to join Europe. The draft failed to provide any concrete U.S. guarantees of security for Ukraine as one of its original goals. Which Ukrainian resources are under Kyiv's control? The war in Ukraine has left a lot of damage, and Russia controls about a fifth. The majority of Ukraine's coal reserves, which powered the steel industry in Ukraine before the war, is concentrated to the east. According to We Build Ukraine, and the National Institute of Strategic Studies in Ukraine, data from the first half of the year 2024 shows that about 40% of Ukraine's metallic resources are under Russian occupation. The think-tanks did not provide a detailed breakdown. Since then, Russian troops continue to make steady progress in eastern Donetsk. In January, Ukraine shut down its sole coking coal mine near the city of Pokrovsk that Moscow is trying to seize. Russia has taken over at least two Ukrainian deposits of lithium during the war. One in Donetsk, and the other in Zaporizhzhia in the southeast. Kyiv controls the lithium deposits of central Kyrovohrad. What opportunities does Ukraine offer? Oleksiy Solovev, the first deputy minister of economy, stated in January that the Government was negotiating with Western allies, including the United States and Britain, France, and Italy, on projects related the exploitation of critical materials. The government estimates that the total investment potential in this sector will be around $12-15 billion between 2033 and 2033. The State Geological Service stated that the government is preparing 100 sites for joint licensing and development but did not provide any further details. Investors have highlighted a number barriers to investment, despite the fact that Ukraine has an extremely qualified and inexpensive workforce and developed infrastructure. These include complex and inefficient regulatory processes, as well as difficulties obtaining geological data or land plots. They said that such projects would require years of development and a large upfront investment. Reporting by Olena Hartmash, Editing by Kirsty Donovan and Neil Fullick
-
IMF lowers its 2025 Middle East and North Africa growth forecast by 2.6% due to global risks
The International Monetary Fund announced on Thursday that it expects the Middle East and North Africa economy to grow only 2.6% by 2025, as uncertainty stemming a trade war in the world and lower oil prices are weighing on this region. The new projection was a significant downgrade from the October projection, which predicted 4% growth. This comes at a time when the region is grappling with geopolitical tensions and a softer external market. In an interview, Jihad Azour said, "Uncertainty can impact real economy, consumption and investment... All these elements have led to a softerening of projections." The direct impact of tariffs is limited due to the limited integration of trade between the U.S. and the region. In its latest Regional Economic Outlook released in Dubai, the IMF pointed out a gradual improvement in oil production as well as protracted regional conflict and delayed structural reforms in Egypt. The report stated that "the ongoing conflicts in MENA have left profound economic scars and deep humanitarian costs," adding that it has had a severe impact on the region's oil-importing economies. In 2025, the MENA non oil importers will see a real GDP increase of 3.4%, compared to an earlier forecast that predicted 3.6%. DIVERGING OUTLOOKS The growth of non-Gulf Cooperation Council (non-GCC) oil exporters will slow down by one percentage point - a sharply downward revision – before staging a modest rebound in 2026. The GCC economy is projected to grow, but at a slower rate than in October. This is due to the extended OPEC+ production cuts that will continue through April. There will also be a gradual phase out by 2026 and a weaker non-oil sector. Azour stated that "with all these changes and obstacles, it is important to also seek new trade partners," referring to GCC. The GCC comprises Bahrain, Kuwait Oman, Qatar Saudi Arabia, and United Arab Emirates. IMF predicts GCC GDP growth of 3.2% for 2025, down from the 4.2% it predicted in October. GCC countries are stepping up their efforts to diversify economies. Initiatives like Saudi Arabia’s Vision 2030, and the UAE’s push in tourism, logistics, and manufacturing aim to reduce reliance on hydrocarbons. Azour stated that "trade diversification, structural reforms accelerated, and productivity improvement are all elements which will help non-oil sectors to maintain a high level of growth." (Reporting by Manya Saini in Dubai Editing by Shri Navaratnam)
-
Sumitomo Corp eyes record profit, creates loss buffer against US tariffs
Sumitomo Corp, a Japanese trading company, forecasted a record-breaking net profit of $4 billion for the current fiscal period and set aside financial buffers to protect against any negative effects of U.S. Tariffs. Sumitomo reported a net profit of 562 billion yen for the fiscal year ending in March. This was up 45.4% compared to a year ago and beat analysts' expectations, which were 554.2 billion. The strong performance in non-mineral resource segments, including real estate, is credited with this. Berkshire Hathaway, Warren Buffett’s company, is a major minority shareholder of Sumitomo, as well as other Japanese trading companies, such Mitsui. It has been increasing its ownership in recent years. The company has set aside a buffer of 40 billion Japanese yen for losses, saying that although the direct impact from U.S. Tariffs will be limited, there may still be an indirect impact. Sumitomo will increase its annual dividend from 130 yen to 140 yen in the fiscal year that ends next March. It also plans to buy up to 2,9% of its 80 billion yen worth shares. It expects to increase nickel production at its Ambatovy Nickel project in Madagascar from less than 30,000 tons last year as several issues are resolved, including the pipeline.
-
Russell: Gold is showing signs of consolidation, as investments ease. But Trump looms.
The gold price has stabilized after reaching a new record high. There are early signs of consolidation in the wake of a rally fueled by fears about Donald Trump's policies on trade. The price of gold slipped to $3,287.72 per ounce, a 6.1% drop from its all-time high of $3,500.05 on April 22, a decline that was accompanied by a decline in the number. Spot gold has still risen 30% since its low price of $2,536.71 per ounce in November 2014, the day after Trump won the election over former Vice President Kamala Harris. World Gold Council data shows that investment flows have driven the rally, mostly due to fears that Trump's tariffs will hit the global economy hard, and cause inflation in the United States. The WGC reported that total gold investment flow soared by 170% during the first quarter 2025 compared to the same period one year prior, reaching 552 tons. This is the highest level since the first three months of 2022. The demand for exchange-traded fund (ETF) increased dramatically in the first three months of this year, from 18.7 tons to 226.5 tons. This is a huge increase from the 113 tons sold in the first third of last. The first quarter saw a 3% increase in physical coin and bar purchases, compared to the same period last year. The increase in investment flows more than offset the decline in gold's major drivers. Central bank purchases fell 21% to 243.7 tonnes in the first three months, and jewellery production dropped 19% to 434 tonnes. High prices are likely to have played a part in depressing demand for jewellery, particularly in China and India. The WGC report stated that China's demand for jewellery dropped by 32% from the same period of 2024 in the first quarter to 125.3 tonnes, and India's fell by 25% to 71.4 tonnes, the lowest since the third quarter 2020. The market will be able to tell if the Trump-inspired flight towards safety, which was fueled by investment, has run its course or if the gold rally is still going strong. FLOWS EASING The largest gold ETF SPDR Trust has shown a modest drop in holdings after reaching a high of 31 months in April. The SPDR reported that its holdings fell to 30,36 million ounces Wednesday, down from the 30.84 million ounces peak reached on April 17 this year. This retreat could be due to signs that Trump's administration is reversing its tariff war on the rest of world, except for China, which is its biggest trading partner. Officials in the administration have discussed the possibility of announcements soon with certain trading partners. Trump has also said that he expects a de-escalation to occur with China, even though there is still no evidence this is happening, and the 145% import tariff remains in place. For now, it is possible that most investors who wanted more exposure to gold did so. To get them to buy again would require further alarming news. It could be in many different forms. For example, it could be a sign that the trade talks are mostly ineffective, and tariffs are likely to remain. This is a possibility, given that the so-called "reciprocal tariffs" announced by Trump on 2 April are only on hold for 90 days. Investors may also revalue U.S. assets if the U.S. Congress passes significant income tax cuts that are skewed towards the wealthy. This is due to fears about rising fiscal deficits. While Trump has backtracked on his threats to fire Federal Reserve chairman Jerome Powell, there is still a risk that a Trump crony will be appointed to the position when Powell's tenure expires in the next year. This could keep gold as an alternative investment option. The trading pattern of gold over the last two decades was characterized by a period of rallying followed by years of consolidation. The current rally is unusually strong and rapid, raising the possibility of a pullback prior to a consolidation period. The world economy is in uncharted waters as Trump tries to detonate the global trading system. This will most likely come at a cost, not only to Trump's own economy but to all others. Gold will continue to rise if the bad news continues. However, it is also vulnerable to any change in U.S. policies that may return to normalcy. These are the views of the columnist, an author for.
-
Rio Tinto has failed to fulfill core commitment five years after Juukan, Aboriginal groups says
Rio Tinto failed to modernise its agreement with the Aboriginal group on whose land it mines iron ore. The group claimed that Rio Tinto had not fulfilled a five-year-old commitment when it destroyed a significant Aboriginal heritage site. Rio Tinto has pledged to reform their business practices following the destruction of 46,000 year old rock shelters at Juukan Gorge in Western Australia for an iron ore mining in 2020. The destruction led to a public outcry and investor anger, a government investigation and the eventual departure of its CEO and Chair. Deanna McGowan, of the Robe River Kuruma Aboriginal Corporation, said that at Rio Tinto’s annual general meeting held in Perth, the Mesa J Mine, the largest mine on the group’s land, has been operational for 30 years. She said, "You've paid us for three-years." Rio Tinto executives said that when they negotiated with the elders of the group twenty years ago there was no reason to include the mine as it would close soon, she explained. She said, "And now we are at... 17 years that Rio has defrauded us at Mesa J." The Robe River Kuruma group does not include Juukan Gorge, but is located in the same Pilbara area. Dominic Barton, the Rio Tinto chairperson, said that the company is committed to finding a solution for the issues raised McGowan. "We are committed to working with you to reach an agreement and resolution. Barton stated that they have had several conversations, and will continue to do so after the meeting. "There is a strong commitment from us to work with you on these issues," he said. Barton had said earlier in the AGM that the mining giant has relationships with over 60 Indigenous groups and land-related groups around the world. He said that "many of these relationships are positive, but a few remain challenging." After the Juukan Gorge disaster, inquiries revealed that agreements made between mining companies and Aboriginal groups prevented them from publicly speaking about the damage they had done to their heritage. They also underpaid them for mining on their land. Rio Tinto, along with other major mining companies such as BHP or Fortescue, have pledged to update land-use agreements they had signed with traditional groups. Rio Tinto's production schedule could be disrupted if it fails to reach these agreements. In its quarterly report, the miner warns that it is "subject to approvals of planned mining areas and clearance of heritage".
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.
(source: Reuters)