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Trump signss executive order against plastic drinking straws
The President Donald Trump signed an executive order on Monday to encourage the U.S. Government and consumers to purchase plastic drinking straws. This is a move to reverse efforts made by his predecessors to phase out single use plastics and reduce waste. Trump said to reporters in the White House, as he signed an order that ordered the return of plastic straws. He also stated that paper straws were "not effective." Trump stated, "I don’t think that plastic will affect a shark too much as they are munching their way across the ocean." Trump's Democratic counterpart, Joe Biden had proposed environmental measures in order to reduce the consumption of single-use, non-biodegradable plastics that damage ecosystems and contaminate foods. His administration also supported a global agreement aimed at capping plastic production. The executive order of Monday was part of Trump's broader lowering of environmental commitments. In one of his first acts in his second term, he removed the United States for the second consecutive time from the Paris Climate Agreement. Trump has also rescinded the policy of the Biden administration to eliminate all single-use products from federal lands before 2032. Dozens have banned single-use plastics that are produced by petrochemicals. These materials are used in shopping bags, bottles, and other disposable products. According to OECD research, if no new controls are implemented, the amount plastic waste that is dumped in the environment will increase from 81 metric tons in 2010 to 119 metric tons by 2040. The negotiations on a global plastic pollution treaty broke down last summer, as major plastic producing nations were reluctant to commit themselves to a binding output cap. Aleksandar Rankovic of the Common Initiative think tank said he wouldn't be surprised if Washington pulled out now. He said that the U.S. would likely align itself with Saudi Arabia, Russia and other countries who are pro-oil. "This new administration is pro-oil," he added. Steve Holland, Trevor Hunnicutt and David Stanway contributed to this report; Chris Reese edited the piece with Bernadette and Bernadette.
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Africa Energy Bank launches in the first quarter and targets $120 billion assets
Nigeria's junior minister of oil said that the Africa Energy Bank will be launched in the first quarter 2025, and will target an asset base worth $120 billion. An Afreximbank representative said that the fossil fuel bank would be a partnership between Afrexim Bank, a trade finance institution, and the African Petroleum Producers Organization. It was expected to begin operations in mid-2024. Heineken Lokpobiri, Nigeria's junior oil minister, said: "The building is finished, we are just putting the finishing touches on it. By the end of this third quarter, this will bank take off." The Minister joked that Nigeria will also follow U.S. president Donald Trump's mantra regarding increasing oil drilling to increase oil production to 2,5 million barrels per days this year. Nigerian crude production is currently averaging 1.7 million barrels per day. Nigeria, Africa's largest oil producer, won the bid to host this multilateral lender over three other African countries. (Reporting and writing by Isaac Anyaogu, Chijioke Ahuocha, Editing by Alexandra Hudson & Jan Harvey).
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In 2 days, Indian stocks lost $180 billion due to fears of a US trade war
Indian stocks lost $180 billion of market value over the past two days after U.S. president Donald Trump announced he would impose reciprocal tariffs against several countries. Many analysts believe the fifth largest economy in the world could be the worst affected. Blue-chip NSE Nifty 50 index and BSE Sensex index fell 1.32% Tuesday, and have fallen a little over 2% the last two sessions. The mid-cap and smaller-cap indexes, which are more focused on domestic companies, have fallen by a greater 5%. Around 87% of the 2,918 shares listed at the National Stock Exchange fell on the day. Market cap has dropped to $4.67 trillion, down from $4.85 trillion the previous two sessions. The outrage began after Trump announced on Sunday that, later this week he would announce reciprocal tariffs against all countries who impose duties on U.S. products. Trump's top economist has stated that India has "enormously" high tariffs. Analysts say that India is vulnerable to a reciprocal U.S. trade tariff, Morgan Stanley and Citi both estimating an increase of between 4-6 percentage points. India is likely to be the hardest hit among Asian countries. Due to its large tariff differentials, India is highly vulnerable to potential U.S. retaliatory levies. Since November 25, when Trump threatened tariffs for the first time, Nifty has dropped 4.7%. This is a much greater drop than two of Trump’s main targets through tariffs - China, up 1.7% and Canada, up 1%. Only Mexico's 5,4% decline is greater than India's. Aluri said that "the markets are now looking forward to the meeting between (Indian PM Narendra) Modi and Trump, which is scheduled for later this week in hopes of any exemptions." Modi, in order to avoid a possible trade war with the United States, is planning tariff reductions and will likely propose an increase in energy and defense imports before his two-day visit beginning on Wednesday. Sonal Verma is the chief economist of Nomura. She said that if tariffs are imposed they will likely hurt exports like electrical and industrial machines, gems and jewelry, pharmaceuticals iron and steel textiles vehicles apparel and chemicals. Each of the 13 largest sectors in stocks fell by at least 1%. The two sectors most exposed to the U.S., pharma and information technology, fell by 1.9% and 1.5 %, respectively.
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UniCredit wins court ruling to reverse its own UK injunction Against Gazprom unit
UniCredit won Tuesday a bid at a London court in order to overturn the injunction that the Italian bank had obtained against a Gazprom subsidiary in Russia, in light of the potential fine of 250 million euros. This highly unusual move highlights the problems UniCredit faces in Russia where it is still the second largest Western bank after Russia's invasion of Ukraine in 2022. In response to a question about the ruling on Tuesday, a spokesperson for UniCredit referred to its 2024 results, which stated that the case was "fully covered". Gazprom's RusKhimAlyans, also known as RusChemAlliance in court documents, had filed a number of lawsuits after Western sanctions stopped work on the liquefied gas plant in Ust-Luga at the Baltic Port in 2022. In August 2023, the company, which is owned 50% by Gazprom and refused to pay the bank guarantees associated with the project due to Western sanctions, filed a lawsuit against UniCredit. UniCredit secured an anti-suit order in London that prevented RusKhimAlyans pursuing their case in Russia. This was confirmed by the UK Supreme Court in 2017. UniCredit, however, asked the London Court of Appeal to reverse that order. RusKhimAlyans obtained its own injunction against lawsuits in Russia and exposed UniCredit to a possible fine in Russia. Lawyers for the bank argued that it had a total exposure to Russia of 710 million euro ($733 millions), which included RusKhimAlyans 460 million euro claim, and a fine of 250 million euros if it didn't try to enforce its own injunction. The German banks, Deutsche Bank and Commerzbank also took steps to reverse their own injunctions, despite receiving orders from the Russian courts to stop RusKhimAlyans from suing. In a written decision, Judge Geoffrey Vos stated that UniCredit had been forced to make this application. However, the bank decided it was best for its commercial interests. UniCredit has also been fighting an order from the European Central Bank to reduce its presence in Russia. In November, it suffered a setback.
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Aluminum and copper slump on fears of tariffs hitting growth
Investors worried about new U.S. trade tariffs, a possible global trade war and the impact on economic growth and metals prices have pushed down copper and aluminium prices. By 1100 GMT, the London Metal Exchange's (LME) three-month aluminium was down by 0.6% to $2,642.50 per metric ton, while copper fell 1.1% to $9344. U.S. president Donald Trump raised tariffs on imports of steel and aluminum on Monday by a substantial 25%, "without any exceptions or exclusions", which could spark a multi-fronted trade war. Dan Smith, the head of research for Amalgamated Metal Trading, said that tariffs could be damaging to the U.S. economic system. Smith was referring semi-fabricated aluminum because Trump's actions extend the tariffs also to downstream products which use metal made abroad. The second phase is the retaliation by other countries. The U.S. exports are growing as well. So they will still be hit by this. Aluminum imports from Canada, mainly, are a major source of aluminium in the U.S. The price of primary aluminum in the U.S. is based on LME benchmark plus Midwest premium. It was up 3% last week to 35 cents per lb. This was the highest level since May 2022 after a 10% jump on Monday. Since Trump's election, it has risen by 60%. We expect that any tariffs will result in higher prices for U.S. Manufacturers. This would be more likely to take the form of a higher U.S. Midwest Premium than a sustained increase in the LME Price," ANZ Research stated. On Monday, the premium between U.S. Comex Copper Futures and LME Contracts reached a new record high amid fears that U.S. Tariffs would be imposed on copper. The premium dropped to $800 per ton on Monday from $930, but is still twice as high as a week earlier. Lead fell 1.2% to 1,975.50, while tin dropped 0.8% to 30,900. (Reporting and editing by David Evans; Additional reporting in Shanghai by Violet Li)
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The license holder claims that the repeal of Greenland's uranium ban could bring back a massive rare earth project.
After the election next month, the mining company who owns the license to Greenland’s Kvanefjeld Deposit is hopeful that the new government will lift the ban on uranium mines. This could lead to the revival of one of the largest rare earth projects in the world. Last month, U.S. President Donald Trump expressed renewed interest in the acquisition of this strategically important Arctic Island. Daniel Mamadou, CEO of Energy Transition Minerals (the Kvanefjeld license holder), said in response to Trump's remarks: "I believe it puts everything related minerals back on track." According to Mamadou, Kvanefjeld ranks among the top three rare-earth deposits in the world outside China. It can supply up to 15% global production of critical components that are used to manufacture consumer electronics and weapons. The project was stopped four years ago after the Inuit Ataqatigiit Party won the election. They had promised to stop the Kvanefjeld Project due to the uranium and its proximity to populated areas. The government then passed a law that prohibited the extraction of uranium deposits with concentrations greater than 100 parts per million (ppm). Locals are concerned that the development of the mine could damage the fragile environment in the country. The mine is just a few kilometres away from Narsaq and near a UNESCO World Heritage Site. Mamadou met local Narsaq protesters when he visited this site last week. Greenland is currently in a caretaker government because elections have been called. The government is not fully operational. The ruling IA says that it still opposes the project and wants the uranium-ban to remain in place. Since the elections were called, Siumut has not stated if they want to repeal the uranium laws. They did not vote in favor of the ban on uranium 2021. Siumut's party constitution states that uranium can be used as a by-product in mining. The leader of Greenland’s largest labour union SIK, with over 8,000 members, supports the development Kvanefjeld. Energy Transition Minerals invested more than 1 billion Danish crowns (138 million dollars) into the project before it was halted. Since then, the company has filed an arbitration claim to seek compensation from both the Greenlandic state and Danish government. Mamadou stated that the outcome of the case - in our favor or against us - will determine the future attitude and view towards foreign investment into Greenland. The shares of the company saw a substantial boost after Trump's remarks, but they remain well below the levels before the enactment the uranium legislation. He said that the timing of Mamadou’s visit to Greenland was coincidental. Energy Transition Minerals is ready to provide a supply chain beyond China in the next three to five year, Mamadou stated. Shenghe Resources, China's largest shareholder, holds 7% of Energy Transition Minerals. Mamadou is optimistic about the economic impact of the project despite protests by locals near Kvanefjeld. He believes the project will give Greenland a boost in its fishing-dependent economy and could pave the way to the country becoming economically independent from Denmark.
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France increases soft wheat area estimates but is cautious about harvest outlook
The French Ministry of Agriculture increased Tuesday its estimate for the winter soft-wheat area for the harvest this year. This confirms a rebound after last year's planting, which was hampered by rain. However, the ministry warned that the soggy conditions may also affect the crop in 2025. After months of heavy rainfall, France, the largest grain producer in the European Union, harvested its smallest soft-wheat crop since 1980, which contributed to a drop in exports. The dry autumn allowed growers to complete the majority of sowings for 2025. However, January's downpours have left some fields wet. The ministry increased its estimate of the area for winter soft wheat in France, which is its main cereal crop. It was originally 4.51 million hectares in December. In a report, the ministry stated that the revised estimate increased by 10% in comparison to the area harvested in the year 2024. It also increased by 0.4% over the average of the last five years. The Ministry of Agriculture said that the amount of soft wheat planted was relatively low compared to the previous 30 years. It also noted that the planting conditions in the Centre-Val de Loire, an important crop belt, were similar to last year because the region was waterlogged. It added that soggy fields in various regions could impact winter cereal yields, or cause resowing of spring crops. The estimated area of winter barley was reduced to 1,21 million hectares, down from the 1.23 million acres projected in December. This is now 2.1% lower than 2024, and 3.5% less than the average for the past five years. Winter rapeseed's expected area has been reduced to 1,27 million hectares, down from 1,34 million last year, but still 6.2% higher than the average for the past five years. The area of winter crop sown for durum wheat (the variety used to make pasta) was 198,000 hectares. This is down from the 206,000 hectares predicted in December, and represents a 30-year low. In France, wheat and rapeseed constitute almost all winter crops. Barley is also a major spring crop.
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EU readys response to Trump's increase in steel and aluminum tariffs
After U.S. president Donald Trump's decision imposing tariffs on steel and aluminum imports, fears of a possible trade war grew. Trump signed proclamations on Monday evening, increasing the U.S. Tariff rate on Aluminium to 25%. He also eliminated country exceptions, quota agreements and hundreds of thousands product-specific exclusions from tariffs. A White House official confirmed that the measures would go into effect on March 4. Tariffs will be applied to millions of tonnes of steel and aluminum imports from Canada and Brazil. They also apply to South Korea, Mexico and other countries. Trump told reporters that the move would simplify tariffs for metals, "so everyone can understand what it means." "It is 25%, without exemptions or exceptions." All countries are included, regardless of where they come from. Trump announced that he will announce reciprocal tariffs against all countries who impose duties on U.S. products over the next two-days. He also said that he is looking into tariffs for cars, semiconductors, and pharmaceuticals. When asked about the threats of retaliation from other countries in response to his new tariffs Trump replied: "I'm not bothered." EU TO RESPOND Ursula von der Leyen, President of the European Commission, said that she regretted deeply the U.S.'s decision. She added that tariffs are taxes that are bad for businesses and even worse for consumers. Over the last decade, EU steel exports have averaged around 3 billion euros ($3.1billion) per year to the U.S. "Unjustified Tariffs on the EU won't go unanswered. They will trigger firm, proportionate countermeasures." "The EU will protect its interests", she said in a press release. Von der Leyen didn't provide any details about the response. One option is to reactivate tariffs that the EU imposed on the United States in 2018, but were suspended as part of a truce between von der Leyen at the time and Joe Biden. Tariffs on U.S. goods such as motorcycles, orange juice and bourbon are suspended by the EU until March 31. Maros Sfcovic, EU Trade chief, described the U.S. ruling in an address to the European Parliament. "lose-lose scenario". Trump's latest trading salvo drove gold prices to record highs on Tuesday, on the back of safe-haven demand. The precious metal hit $2,942.70 during Asian trading before easing slightly to $2,909.49 at 0916 GMT. CANADA HIT BACK According to data from the American Iron and Steel Institute, steel imports will account for approximately 23% of American consumption by 2023. The largest suppliers are Canada, Brazil and Mexico. In 2024, Canada's abundant hydropower resources, which aid in its metal production and exports, accounted nearly 80% for the U.S. imports of primary aluminum. On Tuesday, Canada's Justin Trudeau called the tariffs unacceptable. Trudeau, speaking on the sidelines at the Paris Artificial Intelligence Summit, said Canada would highlight the negative impact the U.S. Tariffs have and that if needed its response would firm and clear. He said that Canadians would stand strong and firmly up if they needed to. Trump will also impose a North American standard that requires steel imports be "melted, poured", and aluminum imports be "smelted, cast", within the region. This is to stop U.S. imports from China and Russia of metals with minimal processing to avoid other tariffs. According to the U.S. government, China is responsible for a large part of the excess capacity in the steel industry. The U.S. says that China's subsidised steel production forces other countries export more, and this leads to the transshipment of Chinese metal through other countries and into the U.S. in order to avoid tariffs or other trade restrictions. After the losses suffered by Asian and European steelmakers, shares in Chinese steelmakers fell further on Tuesday. Meanwhile, stocks in U.S. aluminum and steel makers rose ahead of proclamations.
South Korea's trade minister claims that Trump's steel tariffs will hit the profits of companies
South Korea's trade minister Cheong Inkyo said Tuesday that the 25% tariffs being imposed by President Donald Trump on imports of steel and aluminum, which are due to take effect in March, will reduce U.S. demand for steel and erode profitability among steel exporters.
The tariffs, he said, may provide opportunities for Korean exporters to find new markets.
South Korea will "actively" consider whether there are any room for negotiation with the United States on tariffs, even though Trump increased tariffs on imports of steel and aluminum on Monday to flat 25% "without exemptions or exceptions".
Cheong spoke at a Seoul meeting with steel company officials.
South Korean steelmakers continued to lose money on Tuesday. POSCO Holdings fell for the second day in a row, closing down by 0.8%. Dongkuk Steel Mill also dropped 0.9%, reaching a new low of three months, while the KOSPI index rose 0.7%.
EXEMPTIONS FOR 2018
During Trump's first year in office, South Korea and the United States agreed to a duty-free annual steel quota that would average 70% of the volume shipped to the U.S. from 2015-17.
South Korea became the first U.S. ally to receive an exemption from steel tariffs for an indefinite period of time.
Citi reported that "we see room for negotiations with the second Trump Administration if necessary."
Citi estimates that U.S. Steel Tariffs will negatively impact South Korea's GDP by around 0.1% to 0.2%.
According to data from the American Iron and Steel Institute, South Korea was the fourth largest steel seller in the United States last year behind Canada, Mexico and Brazil. Reporting by Hyunjoo Ji, Hyunsu Yaim and Jihoon Le; editing by Ed Davies and Kate Mayberry
(source: Reuters)