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As the US dollar stabilizes after its recent sharp plunge, global shares gain
On Wednesday, global shares rose and Wall Street's major indexes mixed as trade tensions between the two world's largest economies eased and the U.S. Dollar stabilized after recent losses. The gold price fell to its lowest level in more than a month as the U.S. - China trade truce weakened bullion's appeal as a safe haven. Investors have driven global equity markets higher as the trade spat between China, the United States, and other countries appears to be easing. Lars Skovgaard is a senior investment strategist with Danske Bank. He added, "I find it hard to believe that we will return to the extreme political noise." The MSCI index of global stocks rose by 2.04 points or 0.23% to 873.24. Wall Street saw the S&P500 rise 6.03 points or 0.10% to 5,892.58. The Nasdaq Composite rose by 136.72 or 0.72% to 19,146.81. The Dow Jones Industrial Average dropped 89.37 point, or 0.21% to 42,051.06. The STOXX 600 Index closed down 0.24%, the first time in five sessions that it has lost ground. Investors who were worried about inflationary effects of U.S. Tariff Policies, which severely undermined expectations of Fed rate reductions in the near term, also found some relief from data on Tuesday that showed softer than expected U.S. Consumer inflation. Although traders expect the inflation rate to rise as tariffs increase import costs, there is still uncertainty about the future as Washington continues to negotiate with its trading partners. Wei He is a China economist with Gavekal. He said that the U.S. tariffs against Chinese products are still higher than they used to be a few months ago. There's still a lot of uncertainty in the future. Assessing Tariff Impact The Fed warned of increasing economic uncertainty and indicated that it was prepared to wait until the U.S. Tariffs are fully assessed before reducing interest rates. Jerome Powell, the Fed chair, is set to make remarks on Thursday. Fed Vice-Chair Philip Jefferson stated in remarks on Wednesday that recent inflation data indicate continued progress towards meeting the Federal Reserve’s 2% goal for inflation. However, the outlook has become uncertain because of the possibility that import taxes could drive prices up. The U.S. Dollar, which had been beaten by the uncertainty in the economy and on policy, has extended its gains. It is now up 0.14% versus a basket including the yen, the euro and other currencies. Bank of America’s Global Fund Manager Survey (FMS) revealed on Tuesday that global asset managers had their largest underweight position against the dollar in nearly 19 years as Trump’s trade policy reduced investor appetite for U.S.-based assets. The euro fell 0.15% to $1.1167 and the pound fell 0.38%, falling to $1.3253. Markets were waiting for new economic data and a better picture of the future deficits in the U.S. Congress. The yields on euro zone bonds remained stable after a slight increase to multi-week highs due to easing trade tensions. Retail sales data for the month of April, due Thursday, will be a major indicator for U.S. economy health. On the same day, Russia and Ukraine will hold talks in Istanbul in hopes of reaching a ceasefire after three years in Europe's deadliest conflict since World War Two. The rising U.S. stockpile of crude oil has pushed down prices in commodities. Brent crude futures ended the day 54 cents or 0.81% lower at $66.09 per barrel. U.S. West Texas Intermediate Crude fell 52 cents or 0.82% to $63.15. U.S. Gold Futures closed 1.8% lower, at $3,188.3, while spot gold dropped 2.07%, to $3180.07 per ounce. The MSCI broadest Asia-Pacific share index outside Japan closed up 1.56% to 614.33, while Japan's Nikkei dropped 55.13 points or 0.14% to 38,128.13. Hong Kong's Hang Seng Index jumped.
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Minister says Nigeria is in talks with Petrobras about deep-water acreage
Yusuf Tuggar, Nigeria's foreign minister, said that the country is in talks with Petrobras about exploring its deep-water oil acreage, after years of the Brazilian oil giant leaving the nation. Petrobras has ceased operations in Nigeria but is keen to return. "They said they wanted frontier acreage on deep water," Tuggar, a vice president's statement quoted as saying. Brazil will host both the BRICS Summit and the COP30 meeting this year, after hosting the G20 last year. Nigeria will promote investment during these summits, as it seeks to strengthen ties with Brazil, particularly in the areas of energy, culture, health and agriculture. In February, the Brazilian state energy company said it was in discussions with existing partners ExxonMobil, Shell and TotalEnergies to purchase a portion of their African assets. Petrobras started operations in Nigeria in deep waters near the coast of Niger Delta in 1998. It sold its stakes over 10 years ago in order to raise money for domestic projects. (Written by Chijioke Ahuocha, edited by Cynthia Osterman).
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As the US dollar stabilizes after a steep drop, global shares are rising
The U.S. Dollar recovered from its recent losses as trade tensions between the two world's largest economies eased. Global shares and Wall Street indexes also rose on Wednesday. The gold price fell to its lowest level in more than a month as the U.S. - China trade truce weakened bullion's appeal as a safe haven. Investors have driven global equity markets higher as the trade spat between China, the United States, and other countries appears to be easing. Lars Skovgaard is a senior investment strategist with Danske Bank. He added, "I find it hard to believe that we will return to this extreme political clamor." The MSCI index of global stocks rose by 1.75 points or 0.2% to 872.95. Wall Street saw the S&P 500 rise 2.36 points or 0.04% to 5,888.96, and the Nasdaq Composite gain 106.10 or 0.56% to 19,117.04. The Dow Jones Industrial Average dropped 80.23 points or 0.19% to 42,060.84. The STOXX 600 Index closed down 0.24%, the first time in five sessions that it has lost ground. Investors who were worried about inflationary effects of U.S. Tariff Policies, which severely undermined expectations of Fed rate reductions in the near term, also found some relief from data on Tuesday that showed softer than expected U.S. Consumer inflation. Although traders expect the inflation rate to rise as tariffs increase import costs, there is still uncertainty about the future as Washington continues to negotiate with its trading partners. Wei He is a China economist with Gavekal. He said that the U.S. tariffs against Chinese products are still higher than they used to be a few months ago. There's still a lot of uncertainty in the future. Assessing Tariff Impact The Fed warned of increasing economic uncertainty and indicated that it was prepared to wait until the U.S. Tariffs are fully assessed before reducing interest rates. Jerome Powell, the Fed chair, is set to make remarks on Thursday. Fed Vice-Chair Philip Jefferson stated in remarks on Wednesday that recent inflation data indicate continued progress towards meeting the Federal Reserve’s 2% goal for inflation. However, the outlook has become uncertain because of the possibility that new import taxes could drive prices up. The U.S. Dollar, which has been battered by the uncertainty in the economy and on policy, gained 0.05% versus a basket including the yen, the euro and other currencies. Bank of America’s Global Fund Manager Survey (FMS) revealed on Tuesday that global asset managers had their largest underweight position against the dollar in nearly 19 years as Trump’s trade policy reduced investor appetite for U.S.-based assets. The euro has lost some of its earlier gains and is now down 0.04%. In a subdued trading environment, yields on U.S. Treasuries increased as markets awaited the release of new economic data and a more accurate picture of future deficits in government from discussions in Congress. The yields on euro zone bonds remained stable after a slight increase to multi-week peaks amid eased trade tensions. Retail sales data for the month of April, due Thursday, will be a major indicator for U.S. economy health. On the same day, Russia and Ukraine will hold talks in Istanbul in hopes of reaching a ceasefire after three years in Europe's deadliest conflict since World War Two. The rising U.S. crude stocks have pushed up prices in commodities. U.S. crude dropped 0.79% to $63.17 per barrel. Brent was down 0.77% to $66.12 a barrel. U.S. Gold Futures GCcv1 closed 1.8% lower, at $3,188.3, while spot gold dropped 2.14%, to $3,178.03 per ounce. The MSCI broadest Asia-Pacific share index outside Japan closed up 1.56% to 614.33, while Japan's Nikkei dropped 55.13 points or 0.14% to 38,128.13. Hong Kong's Hang Seng Index jumped.
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Sources say that a Mali judge is expected to order the reopening Barrick mine with new management.
Three people with knowledge of the matter say that a Malian judge will likely order the reopening on Thursday of Barrick Mining’s Loulo-Gounkoto mine under a new management, at the request from Mali’s government. The order would be a significant escalation in a dispute that has been raging between Canada and a Canadian miner whose operations have been suspended since January. Barrick and Mali’s military-led Government have been at odds over the implementation a new mining codes that increases taxes, and gives Mali’s government a larger share of the gold mine since 2023. The government stopped operations after it seized 3 metric tonnes of gold, worth $317 millions at the price of last week. It accused the company of failing to meet its tax obligations. Barrick's exports of gold had been blocked by the government since early November. Two people confirmed that the West African nation, as a shareholder holding a 20% stake, requested the reopening at the Tribunal de Commerce de Bamako Court. The two added that if the judge agreed, a new management group would be appointed to run and reopen the mines. Two sides are currently negotiating a new memorandum. The deadline to pay value added tax in Mali is Thursday. Barrick's mine appears in Mali's VAT system as a tax payer. Barrick's spokesperson and Mali Mines Ministry didn't immediately respond to comments. Reporting by Portia Crowe in Dakar, and Divya Raagagopal in Toronto. Editing by Veronica Brown and David Goodman.
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Pirelli: Talks over dispute with major shareholder ended without agreement
The Italian tyremaker Pirelli announced on Wednesday that the talks to repair relations with Sinochem, its largest shareholder in China, ended without any breakthrough. Pirelli, and its second-largest shareholder, Italy's Camfin have claimed that Sinochem's stake in the company is hindering Pirelli's ambitions for expansion in the United States. Some lawmakers there are against projects backed by Chinese firms. Pirelli stated in April that Sinochem no longer controls the company because of the Italian government's decision to "golden power" the company by 2023. Sinochem, however, denied this claim. Pirelli announced on Wednesday that "the proposals extended to Sinochem by Pirelli have in fact been rejected" following negotiations. The proposal was not detailed. Camfin supported the firm's strategic decision in a Wednesday statement, adding that, "should the situation with Sinochem continue to be unresolved, Camfin will be forced to evaluate the impact of such behavior on Pirelli and shareholders' agreement." Pirelli generates over 20% of its revenue in North America. The company reported a profit of 313.4 million euros for the first quarter, up 6.5% on last year. This was higher than analysts' expectations of 270 millions euros. Pirelli, which is the sole supplier of Formula One tyres, confirmed its guidance for 2025, but warned that, if current U.S. tariff policies continue, it's adjusted EBIT would likely be at the lower end.
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Enel, Leonardo and Ansaldo Energia join forces on nuclear energy research
They announced on Wednesday that Enel, Leonardo, and Ansaldo Energia, all of which are part of the Italian power group, have formed a new company to research nuclear technologies for the next generation. Enel holds a 51% share in Nuclitalia. Ansaldo Energia has 39%, and Leonardo 10%. The three partners released a joint press release that said: "Nuclitalia is responsible for assessing the most innovative designs and mature designs in new sustainable nuclear energy, with an initial emphasis on water-cooled modular small reactors." Gilberto Pichetto Fratin, the Italian Energy Minister, said that nuclear power, as well as renewable sources, could help reduce energy costs for the country. In February, the Italian government approved a law allowing a return to nuclear power almost 40 years after its ban by referendum. Analysts believe it will take at least a decade for atomic energy to return. Nuclitalia's chairman will be Ferruccio Resta, former head of Milan’s Politecnico technical university, and Enel’s Luca Mastrantonio will serve as its chief executive. Mastrantonio is Enel’s head of nuclear innovations. (Reporting and editing by Gavin Jones, Barbara Lewis, and Francesca Landini)
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Pirelli: Talks over dispute with major shareholder ended without agreement
The Italian tyremaker Pirelli announced on Wednesday that the talks to repair relations with Sinochem, its largest shareholder in China, ended without any breakthrough. Pirelli, and its second-largest shareholder, Italy's Camfin have claimed that Sinochem's stake in the company is hindering Pirelli's ambitions for expansion in the United States. Some lawmakers there are against projects backed by Chinese firms. Pirelli stated in April that Sinochem no longer controls the company because of the Italian government's decision to "golden power" the company by 2023. Sinochem, however, denied this claim. Pirelli announced on Wednesday that "the proposals extended to Sinochem by Pirelli have in fact been rejected" following negotiations. The proposal was not detailed. Pirelli generates over 20% of its revenue in North America. The company reported a profit of 313.4 million euros for the first quarter, up 6.5% on last year. This was higher than analysts' expectations of 270 millions euros. Pirelli, which is the sole supplier of Formula One tyres, confirmed its guidance for 2025, but warned that, if current U.S. tariff policies continue, it's adjusted EBIT would likely be at the lower end.
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World hunger monitor faces 'large gap' after US aid cuts
FEWS NET, a global hunger monitor backed by the US, provided crucial data FEWS NET is now operating with reduced capacity Early warning alerts from FEWS NET helped to direct targeted aid Nelson Renteria & Nita Bhalla Treminio, armed with the public bulletins as well as regular alerts on food security produced by the Famine-Early Warning Systems Network (FEWS NET), would pass the crucial data to farmers. It was funded by USAID, the United States Agency for International Development. Since President Donald Trump's January order to freeze USAID spending, it has operated at a drastically reduced capacity. It's a vital early warning tool," said Treminio. He is the head of the Salvadorian Chamber of Small and Medium Agricultural Producers (SMAAP), an association of 125,000 growers of corn, beans sorghum and riz. He said: "I think that producers would suffer worse losses if the early warning alerts of the program were to disappear." FEWS NET provides weather and drought monitoring six to twelve months ahead to help farmers plan their planting schedules. The FEWS NET Program has been moved to a new site under the U.S. Geological Survey. However, the information is limited. This is a blow for those who depended on this service. From local farming associations to international aid groups and governments to policymakers and government officials. 'LARGE GAP' USAID's cuts have had a significant impact on humanitarian organizations working in the field, from HIV/AIDS health care and land demining to food aid. FEWS NET, created by the U.S. Government in 1985 in response to devastating famines that ravaged East and West Africa in 1985, has been a valuable resource for humanitarian organizations deciding how and where to distribute aid. Chemonics International (which manages FEWS NET) received a stop work order from USAID on January 27. Two days later the original FEWS NET website was offline. Mike Budde is the USGS FEWS NET Program Manager. He says that work is in progress to make sure the website is fully functional, but this will take time. He said that the website's resources were lacking. We are currently coordinating with our entire science team in order to make some of the previously published information available on this site. Early Warning Reports Food security experts in Africa and humanitarian workers say FEWS NET is indispensable for humanitarian and development work, providing data-driven insight into food security, climate impact and emerging crises. They said that the regular assessments and early-warning reports enable aid workers to anticipate acute food insecurity and respond accordingly, particularly in areas of East and West Africa affected with drought, conflict, and economic shocks. FEWS NET, for example, has been able to identify and prioritize interventions in vulnerable communities during times of drought and conflict by integrating data on climate, crop conditions, and market analysis into its monthly and seasonal forecasts. It ensured that the most vulnerable people received assistance before the situation escalated to a full-blown emergency. Tinebeb Berhane is ActionAid's Country Director for Ethiopia. She said: "FEWS NET has a comprehensive approach... that supports ActionAid Ethiopia in developing holistic responses to crises." The network's recommendations are used by many NGOs, government agencies and international agencies to coordinate humanitarian planning and policy actions. Berhane stated that by leveraging FEWS NET’s robust early-warning systems and localized information, her organization was able to strengthen its anticipatory actions and contribute to effective, focused and lifesaving assistance for vulnerable population. Erin Lentz is an associate professor at The University of Texas at Austin's LBJ School of Public Affairs and an expert in international food security. She said FEWS NET "is trying to do better early alert, how to think holistically about these things." She said, "That is hard and requires a lot training. Understanding global economic factors and the ability to think of how these things directly affect people's lives, and livelihoods, are required." Lentz says that FEWS NET's early warnings and analyses of food insecurity helped to address a famine which occurred in Somalia in 2011. They also contributed to averting a second famine, which took place in Somalia in 2017. "One of the problems is that trend analysis is one of the most valuable aspects of early warning - is it getting better or worse?" Lentz said. She said, "It is difficult to reconstruct data retrospectively."
Loss of Palestinian employees at Israeli building sites leaves hole on both sides
A. buzz saw gnashed against metal pipes in one corner of a. spacious storage facility being built in the foot hills of Jerusalem. Far on the other side of the dim hall, two workers grapple with. a pit of unfinished flooring. All the rest is void.
Simply 25 employees now toil on the three-story building, where. six months earlier they numbered 125.
The missing out on workers are among some 200,000 Palestinians who. utilized to commute daily from the West Bank, along with 18,500 from. Gaza, all now locked out of Israel because the start of the Gaza. war over security issues, leaving a financial hole on both. sides of the border.
They include around 80,000 Palestinians concentrating on iron. work, flooring, type work and plastering, who typically do the. hard preliminary labour at a lot of Israeli construction sites.
For Palestinians, it means households have actually been suddenly. denied of earnings from labourers who can earn a number of times the. wages in Israel that they would get in your home.
I used to work well, and everything was fine. We were. depending on this work, without any other income, stated. Mohammad Dabous, who for many years took a trip each day from his. town Nilin in the northern West Bank to deal with building. sites in Modiin, a city simply across the border in Israel. People had financial duties, payments, cheques,. which all bounced back, whether for building or payments for. automobiles, they are all in problem, he informed .
The loss of wages has intensified the economic impact from. the war in Gaza and discontent in the West Bank. An International. Labour Organization report today stated unemployment in the. West Bank and Gaza is seen rising above 50% - with a total of. 500,000 jobs lost.
SHUDDERING STOP
For Israel, the relocate to seal the border following the Oct. 7. Hamas attacks on Israeli towns brought building to a shuddering. stop. Residential building fell by 95% late in 2015,. contributing to an overall 19% depression in economic activity.
Other sectors, such as farming and services, were also. hit, but none as much construction, which represents 6% of. Israel's $500 billion economy.
The sector has actually given that recovered rather, relying in part on. workers delivered in from Asian countries, but 40% of building and construction. is still shut down. That will drag down the general economy by. 2% -3%, depending upon the pace at which replacement foreign. employees show up, said Adi Brender, the Bank of Israel's head of. research study. A halt to construction would aggravate a real estate. scarcity, adding to inflation.
The storage facility being integrated in the Jerusalem foothills was. expected to be prepared in December; now the specialists, Limor. Brothers, hope to finish by summer season.
Today, we're not looking to make a profit. We're looking to. finish the jobs and not lose more money than we have actually currently. lost because the start of the war, said the contractor's manager. of personnel and logistics, Ahmad Sharha.
Specialists state they are bleeding money and worried about. fines from clients for missing deadlines. Incomes for employees that. are still available have as much as doubled.
Every day, every week, contractors are failing or they're. stopping to work in the sector by their own decision, stated Raul. Srugo, president of the Israel Builders Association.
Israel is fast-tracking recruitment of 10s of countless. foreign employees, with a quota of 65,000 licensed to come from. nations such as India, Sri Lanka and Uzbekistan.
There is likewise early talk of letting Palestinians return. Some Israeli security authorities worry that the loss of revenues. in the West Bank might be making instability there even worse.
A minimal pilot for allowing Palestinians will be. discussed by the cabinet, Prime Minister Benjamin Netanyahu's. office said.
The estimate is that the Palestinian employees will return,. the concern is when and the number of, stated Yehuda Morgenstern,. Director General of the Building and Real Estate Ministry. Even. if all the Palestinians return, we still need more working. hands.
If Palestinian employees are enabled back, they will go through. more examination and checks at border crossings a lot more difficult. than before, said one Israeli security official.
Some Israeli hardliners stay opposed, including local. leaders.
Bringing those employees into Israel suggests risking the lives. of my homeowners and I am not all set for that, said Avi Elkabatz,. mayor of Afula, a little city in the north. There are numerous. services for bringing in foreign workers from different. nations without threatening the lives of Israeli citizens..
(source: Reuters)