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Alaskan officials seek Asian investors as Trump touts LNG
Alaska's Governor and State Representatives will be visiting Japan and three other Asian Countries starting this week in order to court investors for the natural gas project that President Donald Trump claims could pump trillions into the U.S. Tim Fitzpatrick, spokesperson for the Alaska Gasline Development Corporation and Glenfarne Group, said that officials from both organizations will be visiting allied Asian nations "to inform industry leaders about Alaska LNG's competitive advantages and economics", and to discuss possible opportunities. Officials want to ship liquefied gas from Alaska's remote northern region to Japan, South Korea, and Taiwan via a 1,300 km (800 mile) pipeline worth $44 billion. Alaska Governor Mike Dunleavy is also on the trip from March 19-30, and will visit Taiwan, Thailand South Korea, Japan, and Japan. Jeff Turner, Dunleavy’s spokesperson, said that Dunleavy would be traveling to the region to have high-level talks with leaders of all these countries and corporate executives about the pipeline. If we can start a pipeline, we will be a reliable supplier of LNG in the Pacific Rim. Dunleavy stated last week that gas exports would begin in 2030, and the daily production of gas will be around 3.5 billion cubic foot. Trump has pushed energy sales to Asian allies, while threatening trade sanctions. This is reviving Alaska LNG's stagnated ambitions. On February 7, Trump asked Japanese Prime Minster Shigeru Ishiba to support the project, and on March 4, South Korea agreed. On the same day, Trump informed Congress that Japan and South Korea were interested in partnering on Alaskan LNG. Glenfarne, in an email, said that Trump's backing will "help to accelerate the advancement of the project". The South Korean industry ministry stated that AGDC requested a meeting but nothing had been decided. RESERVATIONS Japanese energy companies have not yet committed to the project, despite Trump's claim. "Companies are interested in it, but still have a lot of reservations," said Hiroshi Hashimoto, a senior analyst at the government-affiliated Institute of Energy Economics, adding that the project's higher costs had been a focal point for years. Two sources familiar with AGDC outreach on condition of anonymity said that potential investors include Japan's largest oil and gas explorer Inpex Corp., trading firms Mitsubishi Corp and Mitsui & Co., top LNG buyer JERA and the government’s Japan Organization for Metals and Energy Security. Takayuki ueda, CEO of Inpex, said in a recent briefing that the question was whether or not it could be economically viable. He said that the extreme cold in Alaska and the size of pipeline had slowed progress. A company spokesperson stated that the government, Inpex’s largest shareholder, had not provided any direction on Alaska. Inpex and the banks have declined to confirm whether they will be meeting the Alaskan representative in Tokyo. Fitzpatrick stated that the natural gas feedstock in Alaska is cheap, which means despite its initial costs the project can compete against projects on the U.S. Gulf Coast. The diplomatic pressure to reduce trade frictions between the U.S. and Ishiba over gas imports is expected to increase. "Japan is committed to reducing its trade deficit with the United States and its dependence on Russia by buying U.S. Liquefied Natural Gas." George Glass, Trump’s nominee for Japan Ambassador, told the Senate on Thursday that he would hold Japan to its promise.
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New Hope Coal Mines announces a dividend increase and buybacks on higher half-year earnings
New Hope, an Australian coal miner, announced a higher first-half profit Tuesday. This was due to increased output and sales, as well as reduced costs. It prompted it to increase its dividend and announce a stock buyback. New Hope's net profit for the six months ended January 31 was A$340.3m ($217.18m), up from A$251.7m a year ago. This beat Visible Alpha's consensus forecast of A$302.2m. The total coal sales during the period increased by 44%, to 5.4 millions metric tons. This was mainly due to the significant increase in production at the New Acland Mine in Queensland, where the production increased tenfold. The increase in coal volume offset the lower average prices realized during the period. Aiming to capitalize on the company's increased profit, it announced a $100 million share buyback plan. It will begin around April 1, 2020, and be completed in a year. The buy-back would benefit all of our shareholders by reducing the number of shares issued, and thereby improving the return on equity for the company, the earnings per share, and the dividend per share. This will be beneficial to all shareholders that continue to own shares in the firm," said Chairman Robert Millner, AO. New Hope declared a dividend of 19 Australian Cents, compared to 17 Australian Cents last year. Reporting by Kumar Tanishk, Aaditya Govind Rao and Alan Barona in Bengaluru. Editing by Alan Barona.
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Bombardier CEO fears US targeting firm if Canada cancels jet deal
Bombardier CEO Eric Martel expressed concern on Monday that Washington might target the private planemaker’s U.S. contract if Canada cancels its C$19 billion ($13.30billion) deal with Lockheed Martin for 88 F-35 fighter aircraft. Canada, embroiled in a trade dispute with the United States is reviewing the contract. "We could be targeted." Martel said to reporters in Montreal, after a speech given by the Canadian Club. Bombardier, a Montreal-based company, announced in October that it would deliver an eighth jet to United States Air Force. The deal could be worth $465 million. The aircraft are equipped with specialized communication platforms. Donald Trump, the U.S. president, reaffirmed his position on Monday. He said he wouldn't grant exemptions for broader steel and aluminium duties and vowed to introduce new reciprocal and sectoral taxes on April 2. The Canadian Defense Ministry has, on the request of the new Prime Minister Mark Carney said that it had made a legal agreement to fund the first 16 F35 aircraft. However, the ministry cited the "changing environment" as a reason for its review. Martel stated, "I'm there to defend Bombardier but I understand the new Prime Minister's questions." Martel's remarks highlight the complexity and danger of a trade conflict for the integrated aerospace industry, which could be caught in an earlier Trump threat to impose 25% on all imports coming from Canada or Mexico. There is no clear indication whether A U.S. exemption The deadline for Canadian and Mexican products like Bombardier planes that comply the United States-Mexico-Canada Agreement will be extended beyond April 2. Martel said that if the U.S. imposed tariffs on the company's deliveries of jets, it would be one option to give the planes to non-U.S. customers first, echoing the strategy used by European planemaker Airbus. Martel added that Bombardier expects any tariffs to not be applied to its U.S.-made business jets. This will reduce any potential impact. He said he did not think that U.S. Tariffs on their planes would be likely to last long or even if they were applied. Martel stated that the existing U.S. duties on aluminum and metals like steel and adhesives along with the counter-duties introduced by Canada last week on these metals and adhesions have had a minimal impact on Bombardier costs. ($1 = 1.4291 Canadian dollars)
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US stocks rise, gold nears all-time highs as Russia-Ukraine negotiations are in sight
Wall Street stocks closed higher on Monday and gold held at around $3,000 an ounce, following mixed economic data. This was ahead of the talks between U.S. president Donald Trump and Russian president Vladimir Putin to end the Ukraine conflict. The weekend's U.S. strike against Yemen's Houthi group threatened to escalate tensions within the oil-rich Middle East. This drove crude prices higher due to supply concerns. The Nasdaq was the only index to show a decline, as shares of Tesla, Nvidia, and Amazon.com were weak. Trump said that he will speak with Putin Tuesday about a possible Russia-Ukraine truce-fire proposal which could ease some geopolitical uncertainties. Oliver Pursche is senior vice president of Wealthspire Advisors in New York. He said: "There's been a big sell-off so a sort of rebound should be expected. I think this is part of what's happening." "And the prospect that Russia and Ukraine could develop a ceasefire which could lead to a more lasting peace is positive for markets not only in the U.S., but globally." The lower-than-expected U.S. Retail Sales data can be attributed to lower gasoline prices. A solid rebound in receipts online and a positive surprise in the core measure show underlying consumer strength. Pursche said that "we had relatively lower than expected (retail) sales for February. This would tend to indicate a less inflationary pressures which could potentially offset the impact of tariffs." The U.S. Federal Reserve, along with other central banks, are expected to meet for policy meetings in the coming week. However they are likely to remain on the sidelines while the full ramifications and impact of Trump's tariff war are assessed. The Dow Jones Industrial Average grew 353.44 points or 0.85% to 41,841.63, while the S&P 500 climbed 36.18 points or 0.64% to 5,675.12, and the Nasdaq Composite jumped 54.58 points or 0.31% to 17,808.66. The rally in European shares continued as Germany's plans to reform its debt helped boost confidence that Europe’s largest economy would increase spending and jump-start growth. Investors are also watching the results of the cease-fire talks between Russia and Ukraine, as this could lead to lower energy prices in Europe. European stocks have outperformed global peers so far in this year. The broad FTSEurofirst 300 Index in Europe rose by 18.02 points or 0.83%. The MSCI index of global stocks rose by 7.35 points or 0.88% to 843.49. The pan-European STOXX 600 rose by 0.79%. Emerging market stocks gained 12.69 points or 1.13% to 1,132.30. MSCI's broadest Asia-Pacific share index outside Japan closed at 588.94 with a gain of 1.25%. Japan's Nikkei gained 343.42 points or 0.93% to 37,396.50. The U.S. Treasury curve flattened due to mixed retail sales figures, but shorter-dated yields increased on fears that the U.S. Economy will slow down if the Fed keeps its restrictive policy rate unchanged. The yield on the benchmark 10-year U.S. notes dropped 1 basis point to 4.299% from 4.308% at Friday's close. The 30-year bond rate fell 2.3 basis point to 4.5919%, from 4.615% on Friday. 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 3.3 basis points, to 4,048% from 4,015%, late Friday. Investors were cautious about the dollar as a result of the uncertainties surrounding Trump's trade policy. The dollar index (which measures the greenback in relation to a basket of currencies, including the yen, the euro and others) fell by 0.33%, reaching 103.39. Meanwhile, the euro rose by 0.38%, hitting $1.092. The dollar gained 0.29% against the Japanese yen to 149.05. The Mexican peso (MXN=>) fell 0.08% against the dollar to 19.953. The Canadian dollar rose 0.6% against the greenback, to C$1.43 a dollar. The supply side was supported by the U.S.'s vow to continue attacking the Iran-aligned Houthis of Yemen. Meanwhile, encouraging economic data out of China supported the demand. Brent crude settled at $71.07 a barrel, an increase of 0.69%. U.S. crude was up 0.60% at $67.58 a barrel. Investors focused on the Federal Reserve's rate announcement this week, which is expected to be announced next week. Spot gold increased by 0.56%, to $3,000.76 per ounce. U.S. Gold Futures rose by 0.23% to $3,000 an ounce.
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US Releases $57 Million in Financing to Reopen Michigan Reactor
The U.S. Department of Energy announced on Monday that it had disbursed $57 Million of a loan guarantee of up to $1.52 Billion for Holtec’s Palisades Nuclear Plant in Michigan. Holtec hopes this will be the United States' first commercial reactor to resume operations after ceasing to operate. The conditional guarantee of loan was part of a campaign by former President Joe Biden's administration to support nuclear power, which produces virtually emissions-free electricity, to curb climate changes and to help meet the rising demand for electricity from artificial intelligence (AI), electric vehicles, and digital currencies. After closing the loan financing in December, the Loan Programs Office of the Department made the first disbursement, which was about $38 millions, in January. In a press release, Energy Secretary Chris Wright stated that "Today's actions are yet another step towards advancing President Donald Trump's commitment of increasing domestic energy production and bolstering our security while lowering costs for the American public." Entergy, a Michigan-based power company, closed its 80 megawatt Palisades nuclear reactor in 2022 after it had produced electricity for over 50 years. The plant shut down two weeks earlier than planned due to a problem with a control bar, despite the $6 billion federal program designed to save nuclear power plants from increasing costs. Holtec hopes to reopen Palisades in the fourth quarter 2025. However, it still requires permits from the Nuclear Regulatory Commission. Holtec is currently repairing the steam generators in Palisades because the standard procedure to maintain the units wasn't followed when the plant shut down. Pat O'Brien said that Holtec was "well on its way to help unleash American energy." (Reporting and Editing by Margueritachoy)
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US Releases $57 Million in Financing to Reopen Michigan Reactor
The U.S. Department of Energy announced on Monday that it had disbursed 57 million dollars of a loan guarantee of up to $1.52billion for Holtec’s Palisades Nuclear Plant in Michigan. Holtec hopes this will be the U.S.'s first commercial reactor to resume operations after ceasing to operate. The loan guarantee was part a larger effort by former President Joe Biden's administration to support nuclear power, which produces virtually emissions-free electricity, and to curb climate changes and to satisfy the rising demand for electricity from artificial intelligence (AI), electric vehicles, and digital currencies. The Loan Programs Office of the Department closed the loan guarantee conditional for Palisades, the second disbursement that was made last year. In a press release, Energy Secretary Chris Wright stated that "Today's actions are yet another step towards advancing President Donald Trump's commitment of increasing domestic energy production and bolstering our security while lowering costs for the American public." Entergy, a Michigan-based power company, closed its 80-megawatt Palisades nuclear reactor in 2022 after it had produced electricity for over 50 years. The plant shut down two weeks earlier than planned due to a problem with a control bar, despite the $6 billion federal program designed to save nuclear power plants from increasing costs. Holtec is still waiting for the Nuclear Regulatory Commission to approve permits before they can reopen their plant. Holtec is fixing steam generators in Palisades because the standard procedure to maintain the units wasn't followed when the plant shut down. (Reporting and Editing by Marguerita Chy)
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Stocks rebound and retail sales increase, resulting in higher yields
The yields on shorter-dated U.S. Treasury bonds rose on Monday, as a segment of the closely watched retail sales report for February beat expectations. This week's Federal Reserve is expected to hold interest rates. The stock market's rally has also led to a reduction in demand for U.S. Government debt as a safe haven. The yields reached a new session high following the Control Group's retail sales figures for February, which rose by 1%. The trading was choppy as retail sales only posted a 0.2% increase, which was below the economists' expectations. You can either make positive or negative trends from it. The swings in sales were largely attributable to non-store retailers. Last month, they were weaker than usual. This month, they were strong. Guy LeBas is chief fixed income strategist for Janney Montgomery Scott. The data also showed that the factory activity in New York State fell this month to its lowest level in almost two years. The yield on U.S. benchmark 10-year notes rose 0.2 basis points in the last day to 4.31%. The yield on the 2-year note, which is highly sensitive when it comes to interest rates, increased by 4 basis points, reaching 4,055%. It reached its highest level since February 28, at 4.065%. The yield curve between the two-year notes and the 10-year notes has flattened out by about four basis points, or 25 basis points. This flattening reflects some concerns that Fed could be too slow in cutting rates as the economy slows. Investors are still worried that the new trade tariffs could hurt the economy and also drive up prices. U.S. president Donald Trump has said that he does not intend to create exemptions for steel and aluminum tariffs. He also said that reciprocal and sectoral duties will be implemented on April 2. In an interview with The Sunday Times, U.S. Treasury secretary Scott Bessent downplayed recent stock market weakness, saying that corrections are healthy, and the markets will "do great" if administration implements good tax policies, deregulation, and energy security. This has dashed hopes that the government would change its policies in response to market movements. The Fed will likely hold its interest rates at the same level when it finishes its two-day session next Wednesday. Chair Jerome Powell may repeat his recent remarks that the U.S. Central Bank is not in a hurry to cut rates again. Le Bas stated that "Powell sealed the deal in his Friday speech, just before the blackout, with the message - it's not the right time to think about saving the economy by cutting rates." Le Bas said that there was no reason to think this would change in a short time. Fed funds futures traders believe that the U.S. Central bank is most likely to continue rate reductions in June. This week, Fed policymakers are expected to update their economic and interest rate projections. The traders are also keeping an eye on discussions about a possible peace agreement between Russia and Ukraine. Trump announced that he will speak with Russian President Vladimir Putin Tuesday to discuss the end of the war in Ukraine after positive discussions between U.S. officials and Russian officials held in Moscow. The Treasury will offer $13 billion of 20-year Treasury Inflation Protected Securities on Tuesday and $18 billion of 10-year Treasury Inflation Protected Securities on Thursday. (Reporting by Karen Brettell, Editing by Toby Chopra, Nick Zieminski).
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US stocks rise, European shares soar with Russia-Ukraine discussions in mind
Wall Street stocks rose on Monday, following their European counterparts' gains after mixed economic figures and ahead of the talks between U.S. president Donald Trump and Russian president Vladimir Putin to end the Ukraine War. The weekend's U.S. strike against Yemen's Houthi group threatened to escalate tensions within the oil-rich Middle East. This drove crude prices higher due to supply concerns. The three major U.S. indexes are in positive territory. However, the Nasdaq is still struggling to gain ground due to the weakness of the "magnificent seven" grouping of AI-related stocks. Trump said that he will speak with Putin Tuesday about a possible Russia-Ukraine truce-fire proposal which could ease some geopolitical uncertainties. Oliver Pursche is senior vice president of Wealthspire Advisors in New York. He said: "There's been a big selloff so I expect some sort of rebound. "And the prospect that Russia and Ukraine could develop a ceasefire which could lead to a more lasting peace is positive for markets not only in the US, but globally." The lower-than-expected U.S. Retail Sales data can be attributed to cheaper gasoline. A solid rebound in Online Receipts, and a positive surprise in the core measure show underlying consumer strength. Pursche said that "we had (retail sales for February) relatively lower than expected, which would tend indicate less inflationary forces that could potentially offset the impact of tariffs." The U.S. Federal Reserve, along with other central banks, are expected to meet for policy meetings in the coming week. However they are likely to remain on the sidelines while the full ramifications and impact of Trump's tariff war are assessed. The Dow Jones Industrial Average rose by 475.61, or 1.15 percent, to 41.964.18, while the S&P 500 gained 57.39, or 1.00 percent, to 5,696.10, and the Nasdaq Composite climbed by 147.94, or 0.82 percent, to 17,900.33. The rally in European shares continued as Germany's plans to reform its debt helped boost confidence that Europe’s largest economy would increase spending and jump-start growth. Investors are also focused on the outcome Ukraine-Russia ceasefire talks which could translate into lower energy prices for Europe. European stocks have outperformed global peers so far in this year. The pan-European STOXX 600 Index rose by 0.79% while Europe's FTSEurofirst 300 index increased by 18.02 points or 0.83%. The MSCI index of global stocks rose by 9.40 points or 1.12% to 845.54. Emerging market stocks gained 12.97 points or 1.16% to 1,132.58. MSCI's broadest Asia-Pacific share index outside Japan rose by 1.26% to 589.02 while Japan's Nikkei gained 343.42 points or 0.93% to 37,396.58. The U.S. Treasury curve flattened due to mixed retail sales figures, but shorter-dated yields increased on fears that the U.S. Economy will slow down if the Fed keeps its restrictive policy rate unchanged. The yield on the benchmark 10-year U.S. notes increased 0.6 basis points from late Friday to 4,314%. The 30-year bond rate fell by 1 basis point to 4.6045%, from 4.615% on Friday. 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 4.4 basis points, to 4,059% from 4.015%, late Friday. The dollar was near its lowest level in five months as uncertainty arising from Trump’s trade policies caused the greenback to weaken, while other currencies, such as the euro, were boosted by domestic factors. The dollar index (which measures the greenback in relation to a basket of currencies, including the yen, the euro and others) fell by 0.35%, falling to 103.37. At $1.0923, the euro rose 0.4%. The dollar gained 0.31% against the Japanese yen to 149.06. The Mexican peso (MXN=>) strengthened by 0.04% against the dollar to 19.935. The Canadian dollar rose 0.6% against the greenback, to C$1.43 a dollar. The supply side was supported by the U.S.'s vow to continue attacking the Iran-aligned Houthis of Yemen. Meanwhile, encouraging economic data out of China supported the demand. Brent crude settled at $71.07 a barrel, an increase of 0.69%. U.S. crude was up 0.60% at $67.58 a barrel. Investors focused on the Federal Reserve's rate announcement this week, which is expected to be announced next week. Spot gold increased by 0.49%, to $2.998.75 per ounce. U.S. Gold Futures rose by 0.23% to $3.001.50 per ounce.
Aluminum tariffs eased by Trump
The price of aluminium fell on Wednesday, amid fears of a global trade war after U.S. president Donald Trump imposed 25% tariffs on imports of steel and aluminum.
As of 0219 GMT on Monday, the London Metal Exchange's (LME) three-month aluminium was down 0.6% at $2,627.5 per metric ton. This is down 1.3% compared to a high of $2.662.50, reached on Monday, when tariffs were announced.
Morgan Stanley estimates that the biggest impact will be felt on aluminum, which is used for transport, construction, and packaging. Net imports account for 82% of U.S. needs.
Since Trump's election, the U.S. premium on aluminium over the benchmark global price at the London Metal Exchange is up by 25%. The current rate of 35 cents a pound has risen by 60%.
After Trump announced tariffs against US imports, volatility in the aluminum market is expected remain high. ANZ Research stated that the U.S. aluminum industries are expected to struggle in the short-term to avoid tariffs, putting upward pressures on prices.
Trump has not yet imposed tariffs on the copper but he threatened duties last week, without providing any further details.
The LME copper benchmark rose by 0.2%, to $9373.5 per metric ton.
The expectation of a copper tarrif pushed the premium between U.S. Futures traded on Comex and the global benchmark at the London Metal Exchange up to a new record on Monday.
Lead increased by 0.3% at $1,985.5, while zinc fell 0.9% to $2,838, and tin rose by 0.1% to $30,200.
The aluminum contract at the Shanghai Futures Exchange fell by 0.5%, to 20,570 Yuan ($2,814.76) per ton. This is its highest level since early December.
SHFE copper fell 0.4% to 76950 yuan. Nickel lost 0.8% at 124450 yuan. Zinc was flat at 23715 yuan. Lead shed 0.2% at 17,105 yuan. Tin was unchanged at 257,000 yuan.
(source: Reuters)