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Peru stops mining in the north after 13 miners are killed
Dina Boluarte, the president of Peru, announced on Monday that mining in Pataz, a district in northern Peru, would be suspended for 30 day after illegal miners kidnapped 13 gold workers and killed them. The Peruvian government plans to establish a military base in the area and impose a curfew from 6 pm to 6 am. Boluarte stated that "the armed forces will be taking control of the area in which Poderosa operates." Poderosa miner said on Sunday that police had recovered the bodies of thirteen workers who were abducted last month by a local mining firm. Peru is the third largest copper producer in the world, but its deposits are mostly located in the south. In the north, gold and silver is mined. Poderosa claimed that criminal gangs have killed nearly 40 people in Pataz, including contractors and artisanal miners. Illegal miners have taken control of several areas controlled by Poderosa since 2020. Due to the attacks against Poderosa, there was already a heavy police and army presence in the area. Morge Montoro said that the 30-day pause may be extended. (Reporting and writing by Marco Aquino, Kylie Madry, Editing by Gabriel Araujo & Alexander Villegas).
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Apple's first bond issue in two years is the main story of the busy primary
Apple plans to offer four tranches of bonds on Monday. It will be its first bond offering in two years. Proceeds from the sale will be used for repurchasing stock and paying off outstanding debt, as well as other purposes. CreditSights analysts believe that the offering will raise between $5 and $6 billion. Apple's debt is $8 billion due in May to November. A total of approximately $35 billion in new debt is expected to be issued by eight other investment grade primary market issuers. Comcast, DTE Electric Co. and General Motors are among the issuers. Credit spreads or the premium that companies pay for Treasuries have rebounded since U.S. president Donald Trump announced the tariffs. The uncertainty surrounding Trump's policies threw many issuers off their plans. They rush to the market before the Federal Reserve meeting on Wednesday in order to avoid the volatility that usually follows comments made by the Fed chairman after monthly policymaking meetings. Analysts said that demand is expected to be strong, as investors seek safety by buying higher-rated bonds. Dan Krieter of BMO Capital Markets, director of fixed-income strategy, said that the issuance rush followed six weeks of consecutive outflows of investment-grade funds. This is the longest streak of outflows since November 2022. Natalie Trevithick is the head of investment-grade credit strategy for Los Angeles-based asset management firm Payden & Rygel. Latest data show that the average spread on investment-grade bonds was 106 basis point Friday. This is three basis points less than the previous day. "Today's issuance is made up of a large number of names of excellent quality, and a great deal of it is simply a regularly scheduled issuance." Trevithick said that there were probably a few deals that were pushed back to April. Payden & Rygel anticipates 12 billion to 13 billion dollars of supply for Monday with a demand of approximately $58 billion from investors, she said.
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Commonwealth LNG signs 20 year supply agreement with major Asian buyer
Commonwealth LNG, a U.S.-based energy company, announced on Monday that it had signed a Sale and Purchase Agreement (SPA) with a major Asian oil and gas company. Commonwealth announced that the buyer would purchase 1 million tonnes of liquefied gas per year (MTPA) from Commonwealth's proposed 9.5-MTPA Cameron, Louisiana facility. Commonwealth did not identify the buyer, but stated that it is one of world's largest energy companies with oil and natural gas operations and one of the biggest global suppliers of LNG. Last week it was reported that Malaysian state oil and gas company Petroliam Nasional Berhad (known as Petronas) was in discussions with Commonwealth to purchase LNG. This offtake agreement is an important milestone as Commonwealth works towards a final investment this year, and the first offtake in 2029. Ben Dell, managing director of energy investment company Kimmeridge and Commonwealth chairman said: Commonwealth expects that the first phase of development will generate more than $11 Billion in investment for Louisiana, and an estimated $3.5 Billion in export revenue. Commonwealth stated that the project will employ approximately 2,000 workers during peak construction, and about 275 when the facility starts operations in late 2029. Commonwealth is owned Kimmeridge Kimmeridge SoTex Holdco. Commonwealth stated that the SPA will only become effective once all customary conditions are met, including a final investment decision affirmative on the project.
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Enea's preliminary Q1 profit increases 13% due to mining and distribution gains
Polish utility Enea has reported an increase in preliminary net profit for the first quarter, thanks to stronger performances from its mining and distribution segment. The company reported on Monday that the net profit for the quarter increased by 13%, to 1.05 billion Zlotys ($278.40 millions), compared with the same period a year ago. The polled analysts expected a quarterly net profit of 1.02 billion zlotys. The EBITDA (earnings before taxes, depreciation and amortization) increased to 1.94 billion Zlotys. Mining contributed 389 million Zlotys while the distribution segment contributed 744 million Zlotys. Enea stated that higher mining EBITDA was due to higher revenues, despite lower average coal prices, despite higher coal volumes. Enea, Poland’s third largest power utility by capitalization, faces pressure due to falling profits in its coal-fired generation fleet as renewables take a greater share of the country's energy mix. According to the energy policy think-tank Forum Energii, Poland will reduce its reliance upon coal. In 2024, coal is expected to account for 57.1% or its electricity production. The utility will release its first-quarter full results on 20 May. ($1 = 3,7715 zlotys). (Reporting and editing by Tomaszjanowski)
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Oil prices drop while bond yields increase and stocks fall
MSCI's global equity index fell on Monday. Oil prices dropped on the prospect that production would increase. Taiwan's dollar also hit its highest level in almost three years against U.S. dollars, marking the beginning of a busy central bank week. The yields on U.S. Treasuries rose following data showing that the U.S. Services sector grew in April, boosted by higher orders. The price paid by companies for goods and services has reached its highest level in over two years. This indicates that tariffs have contributed to the inflationary pressures. The gold price rose, boosted by a weaker dollar and demand for safe havens ahead of the U.S. Federal Reserve’s rate policy announcement due later this week. The MSCI index of global stocks fell by 0.55 points or 0.06% to 848.70. The public holidays in Britain, China and Japan slowed down the overall trading. The pan-European STOXX 600 rose by 0.2%. Wall Street saw all three major indices gain some ground but the S&P 500, after nine days of gains, was headed for its first drop. The uncertainty over President Trump's policies on trade was partly to blame. He announced a tariff of 100% on films produced outside the U.S., but provided little information on how it would be implemented. Adam Sarhan is the chief executive officer of 50 Park Investments, a Florida-based investment firm. On Monday, the movie tariffs caused shares of video streaming providers such as Netflix, Paramount Global and Netflix to fall. Sarhan stated that investors are worried more industries may be targeted "if they wake up and see another 100% or a 200% tax on some other important industry to our economy." Trump said that on Sunday, the United States met with many countries including China about trade, and that his priority was to get a fair deal with China. In recent days, optimism about a possible de-escalation in trade tensions between China and the U.S. has helped boost markets. European shares are trading at levels just below those seen before Trump’s major tariff announcement on April 2, which shook markets. At 11:00 am on Wall Street, the Dow Jones Industrial Average grew 58.66, or 0.14 %, to 41.376.72, while the S&P500 fell 18.49, or 0.33 %, to 5,668.18, and the Nasdaq Composite dropped 89.72, or 0.50 %, to 17,888.23. Buffett's Berkshire Hathaway Class B shares also fell sharply after Buffett announced at the weekend that he would step down as CEO. Oil prices dropped more than 2% on energy markets after OPEC+ announced over the weekend that it would increase oil production even more. This sparked investor concern about more oil supply at a time when demand outlook is uncertain. U.S. crude dropped 2.81%, to $56.66 per barrel. Brent was down to $59.75 a barrel on the same day. The Taiwan dollar has seen a second session of strong gains against the U.S. Dollar, which reached a low of 28,815 and last traded at 28,990. The increase in the Taiwanese currency has fueled speculation that Asian currencies will be revalued to gain concessions from the United States. Taiwan's President Lai Ching Te on Monday urged people to not spread false stories about the United States and foreign exchange rate negotiations. The dollar index fell by 0.24%, to 99.64, measuring the U.S. Dollar against a basket major currencies, including the yen, the euro and other major currencies. The dollar fell 0.83% against the Japanese yen to 143.72. The yield on the benchmark 10-year U.S. Treasury notes increased 2.3 basis points from Friday's close to 4.343%. The yield on the 2-year bond, which is usually in line with expectations of interest rates for the Federal Reserve (Federal Reserve), rose by 0.5 basis points, to 3.845% from 3.84% at Friday's close. Spot gold increased by 2.3%, to $3,314.59 per ounce. U.S. Gold Futures increased 2.52% to $3313.20 per ounce.
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Trump's trade tariffs and threats
The President of the United States, Donald Trump stated on Sunday that he was most concerned about securing a fair deal with China after his tariff policy had shook the consumer and business confidence around the world and caused a contraction in U.S. economy during the first quarter. After the U.S. government held a series of meetings with its trading partners following Trump's April 2 announcement, there were signs of a possible de-escalation of the trade war. 10% Discount On most countries, and suspend higher levies for 90 days on many trading partners. On July 8, the duties will now be imposed. He also levied 25% on autos and steel, and 25% on imports of Canada and Mexico, and 145% on China. In his latest move Trump imposed a Get 100% Discount On movies made outside of the United States that are sent to the country. Here's a summary of Trump’s trade-related actions and threats to date. BROAD TARIFFS Trump's vision is based on a gradual rollout of tariffs that will apply to all U.S. imported goods. Trump's economics team was tasked with developing plans to impose reciprocal tariffs against every country that taxes U.S. Imports. They also had to address non-tariff barriers, such as vehicle safety regulations that exclude U.S. automobiles as well as value added taxes that raise their price. Specific COUNTRIES Trump's tariff proposal targets several key trading partners. MEXICO AND CANADA : Mexico and Canada were the two largest trading partners of the U.S. from 2024 to November. Trump's new tariffs of 25% on imports from Mexico, Canada and the European Union took effect on 4 March as a response to migration and fentanyl. Tariffs were imposed on energy imports from Canada and Mexico, as well as on the majority of goods imported. Canada exports mainly crude oil, other energy products and cars and auto components within the North American automotive manufacturing chain. Mexico exports a variety of goods to the U.S., including industrial and automotive products. Canada retaliated with 25% tariffs against US imports worth C$30 billion (21,13 billion dollars), including orange juice and peanut butter. Other products include beer, coffee, motorcycles, appliances, and motorbikes. The Canadian government said that it will impose additional duties on C$125billion of U.S. products if Trump's Tariffs are still in effect in 21 days. This could include vehicles, steel and aircraft, as well as beef and pork. U.S. commerce secretary Howard Lutnick stated that U.S. officials could still work out a partial solution with the two neighboring countries, and added that they need to do more in the fentanyl arena. In response to Trump's tariffs on steel and aluminum, Canada announced that it would impose retaliatory duties of C$29.8 Billion ($20 Billion) on U.S. imports. The two countries are exempted from the "Liberation Day", announced on April 2 tariffs, but they face a separate 25% tariff on auto imports. Canada has asked the WTO to consult with the U.S. about its import duties on steel and aluminum products as well as levies placed on Canadian cars and parts. CHINA: Trump imposed 10% tariffs on all Chinese imports to the U.S. effective February 4, after repeatedly warning Beijing that it was not doing enough to stop the flow of illegal drugs into the U.S. On March 4, he imposed another 10% tariff on Chinese products. China announced additional tariffs between 10% and 15% on some U.S. exports starting March 10, as well as a number of new restrictions on exports for certain U.S. entities. It then complained to the WTO about the U.S. Tariffs. Trump increased the tariffs on China by 34% in April, making the total to 54%. China responded with a 34% duty on all U.S. products. Trump replied that the U.S. will impose an extra 50% tariff on China, if Beijing doesn't withdraw its retaliatory duties on the U.S. and said "all discussions with China regarding their requested meetings with the us will be terminated." Washington's new round of tariffs raised duties on China to 145%. Beijing then increased levies against U.S. products by 125% as a result. Trump has said that the EU, and other countries, have alarming trade surpluses against the U.S. He said that the products of the other countries will be subject to tariffs, or he would demand they purchase more oil and natural gas from the U.S. Steel, aluminum, and cars will be subject to import tariffs of 25%, while other goods will face tariffs of up to 20%, starting April 9. Pharmaceuticals are among the most vulnerable industries, since U.S. companies such as Johnson & Johnson, Pfizer, and others have large facilities in Ireland. Ireland is also a leading exporter of medical equipment. The European Union announced on April 7 that it had offered to offer a "zero for zero" tariff deal in order to avoid a trade conflict. EU ministers agreed to prioritise negotiations and to strike back with targeted countermeasures the following week. In response to Trump's metals duties, the EU announced on March 12 that it would begin imposing counter-tariffs next month on goods worth 26 billion euros (28 billion dollars) from the United States. As a result of the U.S. auto and wider tariffs, the EU is expected to release a more comprehensive package of countermeasures at the end of April. Trump announced on March 13 that he would slap 200% tariffs on European wines and spirits as a response to EU plans to impose tariffs next month on American whiskey, among other products. PRODUCTS AUTOS: Trump announced a 25% tariff for imported cars and light truck on March 26. The 25% tax would be added to previous duties on imported finished vehicles beginning on April 3. On April 29, he issued a couple of orders that aimed to reduce the impact of his auto tariffs by combining credits with relief from other levys on materials. The Republican President has given automakers two years to increase the percentage of domestic components used in U.S.-built vehicles. Metals: On March 12th, Trump raised tariffs for all imports of steel and aluminum to 25% and extended duties to hundreds downstream products. These include everything from nuts and bolts, to bulldozers blades, to soda cans. More than half of the U.S.'s aluminum and steel imports come from Canada, Mexico, and Brazil. Trump ordered on February 25, a new investigation into the possibility of new tariffs on imports of copper to rebuild U.S. manufacturing of this metal, which is critical for electric vehicles, military equipment, semiconductors, and a variety of consumer goods. Just over half of the refined copper that is consumed in the U.S. each year is produced domestically. SEMICONDUCTORS : Trump stated that tariffs would start at "25% or higher" and would increase substantially over a period of one year. He did not, however, specify the date when they would be implemented. Taiwan Semiconductor Manufacturing Co., the largest contract chipmaker in the world, produces semiconductors for Nvidia and Apple, among other U.S. customers. In 2024, it will generate 70% of its revenues from North American clients. LUMBER: On March 1, Trump ordered a new investigation into trade that could add more tariffs to imported lumber. This would be in addition to the existing duties on Canadian Softwood Lumber and 25% tariffs for all Canadian and Mexican products. ALCOHOL: Trump threatened on March 13 to slap 200% tariffs on wine, cognac, and other alcohol imported from Europe in response to an EU plan to impose tariffs American whiskey and other products. This is itself a retaliation for Trump's 25% tariffs that went into effect on steel and aluminium imports the day before. PHARMACEUTICALS - While Trump's "Liberation Day' announcement spared the pharmaceutical sector from reciprocal duties, the president said that duties were "under review." He warned that the tariffs could be "at a new level you haven't seen before." ELECTRONICS - Trump exempted smartphones, computers, and other electronics, mostly from China, from the steep tariffs. This was a relief to major technology companies such as Apple, Dell Technologies, and other importers. This move exempts certain electronics from Trump's baseline 10% tariffs on most goods imported from countries other than China.
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In northeast Nigeria, armed bandits kill 19 and rustle cattle
Police and residents in Bauchi, north-east Nigeria, said that at least 19 people had been killed in an ambush suspected to be carried out by bandits and a livestock raid. In a press release, the Bauchi Police Command said that an ambush took place in Gwana District early Sunday morning. Police said that civilians from nearby villages were also killed as they fled the attack. In a statement, Sani-Omolori Aliyu, the Bauchi Police Commissioner said that he had dispatched a team of tactical operational teams to the scene where they recovered the bodies of the casualties. In recent years, gangs of heavily-armed men known as bandits have caused havoc in northwest Nigeria, kidnapping and killing thousands. They also make it dangerous to travel on the road or farm. Ibrahim Hussaini is an eyewitness who said that a gunfight ensued between the security and bandits, which resulted in multiple deaths amongst the vigilantes and residents. Mohammed Umar, an Alkaleri local council member who lives in Gwana told us by phone that the attackers had rumbled a number of sheep and cattle from the area after they overpowered the local security team. Reporting by Ahmed Kingimi, Maiduguri. Writing by Elisha Gbogbo. Editing by Ros Russel.
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Peabody may exit Anglo American's assets deal over damaged coal mine
Peabody Energy announced on Monday that if it is not satisfied with the resolution of issues surrounding Anglo American's Moranbah North Mine, then they may terminate their pending agreement to purchase some Australian steelmaking coal assets from this British mining company. Peabody shares rose over 4% at the opening of trading. An underground fire at Anglo American’s Moranbah North Coal Mine, located in Queensland, Australia's Bowen Basin, has caused the suspension of production. The assets agreement signed by the two companies last year includes the mine. Peabody has informed Anglo American that it has sent a Material Adverse Change notice (MAC). A MAC clause is a negative event that occurs between the time of signing a contract and the closing date. This could allow the buyer to cancel the deal. In a press release, Peabody CEO Jim Grech stated that "a substantial portion of the acquisition price was associated with Moranbah North. However, there is no timetable known for the resumption of longwall production." Peabody has said that it could walk away from the agreement if issues at the mine are not resolved in the time frame specified by the acquisition agreements. Anglo American responded by saying that it did not consider the production stoppage to be a material adverse change in its agreement with Peabody. Anglo said that the company would continue to work with Peabody in order to meet the remaining conditions necessary to complete the transaction. Jefferies analysts stated in a report that they expect the Monday development to "significantly delay" the closing of the deal and may even affect "the likelihood of this transaction ever going through".
Fortescue iron ore deliveries fail after derailment
Australia's Fortescue on Wednesday logged a largerthanexpected decline in thirdquarter iron ore deliveries, following a derailment of ore cars and weather disruptions that likewise caused a small cut in its outlook for annual deliveries.
The world's fourth-largest iron ore miner said it delivered 43.3 million metric lots of the steel-making product in the three months ended March 31, below 46.3 million tonnes a. year earlier.
That compared with a Noticeable Alpha quote of 45.4 million. loads, according to Morgan Stanley.
Citi experts stated March quarter hematite deliveries were 12%. below their expectations given the derailment plus weather. results.
Fortescue stated it expects its 2024 delivery at. the lower end of its 192-197 million ton projection, pointing out the. derailment and weather effects throughout the quarter.
That includes 2 million lots from its magnetite Iron Bridge. operations, compared to a previous projection of 2-4 million heaps,. which were impacted by water availability at its processing. plant.
Fortescue cut its capital costs assistance for its metals. service to $2.5 billion to $2.7 billion from $2.8 billion to. $ 3.2 billion, partly as an outcome of currency relocations.
(source: Reuters)