Latest News
-
What are the positions of Australia's political parties on energy policy
Energy security is a major issue for Australian voters, who are concerned about rising electricity bills and gas shortages. Australia is the second largest LNG exporter in the world, with sales of A$69 billion ($44 billion) last year. With sales of A$69.9 billion ($44.92 billion) in 2013, Australia was the world's No. 2 LNG exporter. It is also the most polluting nation per capita within the OECD. Both the Liberal-National Coalition, led by Peter Dutton and the centre-left Labor Party of Prime Minister Anthony Albanese, and its conservative counterpart, the Liberal-National Coalition, have pledged to lower gas prices for consumers and increase domestic supply. Both sides favor using gas as a backup to renewables that are weather dependent. Labor wants a grid that is dominated by renewables, whereas the Coalition wants to build an industry of nuclear power, which is currently banned in Australia. The Greens, who also expect to win seats, and could be kingmakers in the event that either of two major parties fails to form a majority, are against nuclear energy, and any new gas or oil production. The details of energy and climate policy are listed below: LABOR Albanese’s energy package aims at addressing living costs and climate change by committing A$2.3billion to subsidise batteries for household use to store solar electricity. Labor has pledged to provide energy bill relief to households and small business. The party announced a $2 billion increase to its clean energy technology financing through its green bank in order to help it reach its goal of 82% renewable production by 2030. The government wants to reduce carbon emissions by 43 percent from 2005 levels by the year 2030, and reach net zero by 2050. It will replace coal-fired stations with solar and wind power, supported by hydropower, gas and energy storage. Last year, the government released a long term strategy which committed to using gas as an energy resource to 2050. The strategy assured trading partners "Australia will remain a reliable trading counterpart for energy, including LNG." Albanese intervened on the domestic gas markets with emergency price caps, and a code for producers during his tenure. LIBERAL-NATIONAL COALITION Dutton released a plan that promised "Australian Gas for Australians", with the aim of reducing gas and electricity prices. The coalition is proposing a radical shift in policy by requiring the country's LNG exporters on the east coast - mostly Shell's QCLNG, and Australia Pacific LNG, operated by ConocoPhillips to sell a part of their gas that has not been contracted into the domestic market. Non-compliance will result in fines. The proposed policies have raised concerns amongst Japan's LNG importers, who rely on Australia to supply about 40% of their gas. The coalition also said that it would support the gas sector by reducing "red and white tape" in the approval process for new projects. This includes halving the timeframes of the approval process and accelerating a decision to extend the life of Woodside’s North West Shelf Liquefied Natural Gas plant. The government has also committed to increasing investment in "strategic" basins, including Beetaloo and Narrabri in eastern Australia. The coalition is asking the government to build nuclear power plants in seven different locations across the country. The coalition says that a small reactor or larger plant could be built in 2035, and the rest of them by 2050. Commercially, small modular reactors have not yet been commercially released. GREENS The Greens propose to phase out fossil fuels through the banning of all new coal and natural gas projects. They also want to cancel exploration permits, and block expansions for current projects. This includes the North West Shelf LNG Plant. The party hopes to reach net-zero emission by 2035. The government will provide grants and low interest loans to households that want to switch from gas appliances to electric ones. The Greens also criticised the low tax payments of the gas sector and said that they would close "loopholes", and raise levies on big corporations.
-
Gold prices rebound on dip buying despite US China trade deal hopes
Gold prices rose more than 1% Thursday, thanks to bargain-buying. This comes a day after bullion fell to a new low of the week amid optimism about the U.S. China trade agreement. As of 0312 GMT, spot gold increased 1.5% to $3335.39 per ounce. U.S. Gold Futures rose 1.5% to $3344. Bullion that does not yield, which is traditionally viewed as a hedge to global instability, reached a record-high of $3,500.05, but dropped below $3,300 on Wednesday. The volatility we are seeing this week has been driven by headline and technical risk. The fundamentals remain strong so investors are buying dips based on the larger picture, said Capital.com financial market analyst Kyle Rodda. U.S. Treasury secretary Scott Bessent stated on Wednesday that excessively high tariffs are not sustainable and must be reduced in order to proceed with trade negotiations. However, he said President Donald Trump will not cut tariffs unilaterally on Chinese imports. A report stated that Trump plans to exempt carmakers from certain tariffs after intense lobbying over the past few weeks by executives in the industry. Rodda stated that "we will continue to see an upward trend until the Trump administration reverses its trade policies." The International Monetary Fund stated on Wednesday that tariffs would slow down growth and increase debt across the globe. Bessent stated that if Trump's policies were implemented, the U.S. economy will grow faster than the revised IMF estimate of 1,8%, which is down from 2,7% in January. Dollar index fell by 0.3% against peers, making greenback priced bullion more affordable for overseas buyers. Silver spot fell by 0.6%, to $33.33, platinum dropped 0.4% to $968.60 an ounce and palladium fell by 0.8% to $936.63. (Reporting and editing by Rashmi Soreng and Eileen Soreng in Bengaluru, Anmol Choubey from Bengaluru and Anushree mukherjee)
-
Markets take stock of Trump’s U-turns and the relief rally is stuttering
Investors struggled to sort through the noise of the Trump administration, its erratic stance on tariffs, and the Federal Reserve leadership. This week, U.S. president Donald Trump attacked Fed chair Jerome Powell. He then retracted his calls for his resignation. Investors were left in the dark about the final state of tariffs against China, despite the many headlines. A source said on Wednesday that, in the event of talks with Beijing, the Trump administration may consider lowering tariffs for imported Chinese products. This follows a Wall Street Journal article that suggested the White House was considering reducing tariffs for Chinese imports. Treasury Secretary Scott Bessent said later that such a step would not be taken unilaterally. He was echoing remarks made by White House spokesperson KarolineLeavitt. I don't believe you'll ever be able to get used the flip-flopping and haphazard behavior we've seen. Tony Sycamore is a market analyst for IG. He said that it was extreme. "I think Trump is like that - he will try to find the levers he can pull. I don’t think he is afraid to try something and I do not think he’s afraid to walk it back if it fails." MSCI's broadest Asia-Pacific index outside Japan dropped 0.4%, bucking Wall Street's trend after stocks rose on Wednesday amid hopes of a de-escalation in Sino-U.S. tensions. U.S. Futures have pared their gains made earlier in the session. Nasdaq and S&P500 futures are down by 0.24%, respectively. EuroSTOXX futures only rose 0.08%. The Nikkei gained 1%. Two sources familiar with this matter confirmed on Thursday that Ryosei Acazawa, Japan's chief tariff negotiator, is finalizing plans to visit the United States in April to have a second round with his counterpart. Hong Kong's Hang Seng Index fell 0.7%, while the CSI300 blue chip index in China rose 0.24%. Salman Ahmed is the global head of strategic asset allocation and macro at Fidelity. He said: "Short-term volatilities are quite extreme. This high volatility will continue. You have elevated volatility moving forward because the fundamental rules of the game, the economic world, are changing." Ahmed said this on the sidelines the IMAS Investment Conference 2025 and Masterclass in Singapore. Investor confidence in U.S. asset prices remained fragile, and the dollar dropped on Thursday after a week of gains on Trump's U turn on firing Powell. The dollar dropped 0.5% against the yen to 142.75. The euro rose 0.32%, to $1.1350. Meanwhile, the Swiss franc grew more than 0.3% at 0.82795 to dollar. The 30-year yield was little changed, at 4.7980%. Trump's change of heart on Powell appeared to lessen the threat to U.S. fiscal and monetary credibility. The benchmark 10-year rate was down by about 3 basis points, to 4.3578%. Beth Hammack, President of the Federal Reserve Bank of Cleveland, said that on Wednesday there is still a lot of uncertainty about the future. She urged the central bank to be cautious in its monetary policy and to monitor the economy's performance. The markets are predicting a rate cut of around 80 basis points by December. Oil prices have stabilized in other markets after a drop in the previous session. Sources said that OPEC+ will consider accelerating their oil production increases in June. Brent crude futures rose by 0.08%, to $66.17 per barrel. U.S. crude also increased 0.03%, to $62.29 a barrel. Gold continued its march towards a new record high. The yellow metal rose 1.6% to $3,340.29 per ounce.
-
Financial Times - April 24
These are the most popular stories from the Financial Times. These stories have not been verified and we cannot vouch their accuracy. Headlines UK announces final approval for flagship carbon-capture project Davos founder accused by World Economic Forum of manipulating research Bailey: BoE must "take seriously" the risk of Trump tariffs to growth London Metal Exchange to introduce premium for green metals View the full article The UK government and Italian energy giant Eni will announce the final approval for a 38 mile pipeline that will collect carbon dioxide from industrial facilities around Liverpool and Manchester, and bury it off-shore. The World Economic Forum's founder Klaus Schwab is accused of manipulating the research conducted by his organisation to curry favor with governments. Andrew Bailey, Governor of the Bank of England (BoE), said that the BoE must "take seriously" any risks posed to the growth of the economy by Donald Trump's policies on tariffs. He also indicated that the central banks was likely to reduce interest rates during its next meeting due to the uncertainty surrounding global trade. London Metal Exchange has drawn up plans to introduce a "green premium" for metals mined sustainably. This is in response to industry pressures aimed at distinguishing these from "dirty", more environmentally damaging supplies.
-
Dalian iron ore at three-week high due to seasonal demand and US-China trade talks hopes
Dalian iron ore Futures reached their highest level in almost three weeks on March 13, boosted by the hopes that U.S. China trade talks will be successful and seasonal demand for this steelmaking ingredient. The price of the most traded September iron ore contract at China's Dalian Commodity Exchange grew by 2.11%, finishing at 727.5 Yuan ($99.73). In the early part of the session, prices reached 731 yuan - their highest level since April 3. As of 0708 GMT, the benchmark May iron ore traded on Singapore Exchange was 1.61 % higher at $100.2 per ton. In a recent note, Galaxy Futures said that the steel production in China continues to grow and that downstream demand has increased for building materials. "Increased purchases by mills and reduced imports have depleted inventories of iron ore," said ANZ. Mysteel, a consultancy, reported that the stocks of five major carbon products held by Chinese mills had fallen 5% week-on-week on April 17. It attributed this decline to the resilient domestic demand for steel. ANZ added that while China's property indicators have improved, the prospects for a significant recovery are still bleak. Hopes of a reduction in tensions over trade between the United States, and China also boosted sentiment. U.S. Treasury secretary Scott Bessent stated on Tuesday that the trade tensions between China and the United States will be eased, but he called future negotiations a "slog", which hasn't yet begun. U.S. president Donald Trump expressed his optimism that he could make significant progress with China in order to lower their tariffs. India imposed on Monday a temporary 12% tariff on certain steel imports. This is known locally as a "safeguard duty" and was aimed at curbing a rush of cheap shipments coming from China. Coking coal and coke, which are used to make steel, also increased in price, by 2.56% and 3.14 %, respectively. The benchmark steel prices on the Shanghai Futures Exchange rose. Rebar rose by 1.46%. Hot-rolled coil was up 1.41%. Stainless steel and wire rod both increased by 0.39%. $1 = 7.2948 Chinese Yuan (Reporting and editing by Eileen Soreng; Michele Pek)
-
Sources say Sinopec has resumed its Russian oil purchases after a short break amid sanctions risk
Sinopec, Asia’s largest refiner, has resumed its purchases of Russian crude oil following a short pause in last month to assess the risks posed by sanctions imposed on Russian entities by the United States, according to trade sources on Wednesday. Sources said that Unipec, a trading division of China's state run Sinopec, had purchased Russian Far East ESPO blend oil for May loading, after being absent from the March and April loading ESPO cargoes. Unipec's decision to resume purchases was not immediately apparent. Sinopec didn't immediately respond to an inquiry for comment. Sources claim that the number of cargoes purchased by Unipec is significantly lower than it was before the January announcement. On January 10, the former Biden administration imposed harsh sanctions against Russian oil producers Gazprom and Surgutneftegaz, as well as insurers and over 100 vessels in order to reduce Moscow's revenue. Last month, it was reported that sanctions had caused a drop in Russian oil exports from China and India while Chinese state oil companies Sinopec Zhenhua Oil and Zhenhua Oil stopped purchasing Russian oil. Traders said that ESPO blend oil cargoes loaded in May were trading at a premium of around $2 per barrel over the ICE Brent benchmark, on a shipped basis to China. Reporting by Siyi Liu and Florence Tan in Singapore, Editing by Andrew Heavens and Kirby Donovan
-
Markets take stock of Trump’s U-turns and the relief rally is stuttering
Investors struggled to sort through the noise of the Trump administration, its erratic stance on tariffs, and the Federal Reserve leadership. This week, U.S. president Donald Trump attacked Fed chair Jerome Powell. He then retracted his calls for the resignation of the chair, leaving investors in the dark about the final state of tariffs against China, despite the many headlines. A source said on Wednesday that, in the event of talks with Beijing, the Trump administration may consider lowering tariffs for imported Chinese products. This follows a Wall Street Journal article which stated that Trump's White House was considering reducing tariffs on Chinese imports. Treasury Secretary Scott Bessent said later that such a step would not be taken unilaterally. He was echoing remarks made by White House spokesperson KarolineLeavitt. I don't believe you'll ever be able to get used the flip-flopping and haphazard behavior we've seen. Tony Sycamore is a market analyst for IG. He said that it was extreme. "I think Trump is like that - he wants the best levers and he doesn't fear trying anything. He's not afraid to walk it back either if it fails." MSCI's broadest Asia-Pacific index outside Japan fell by 0.17%. This was in contrast to the Wall Street trend, which saw stocks rise on Wednesday amid hopes of a de-escalation in Sino-U.S. tensions. The Nasdaq 500 and S&P500 futures each rose by about 0.2%. The EuroStoxx 50 futures rose 0.16%. Japan's Nikkei gained 0.86%. NHK reported that the Trump administration informed Japan's trade delegation it couldn't give Japan a special treatment in regards to its tariff measures. This was in response Tokyo's demand for a revision during this month's ministerial talks. Salman Ahmed is the global head of strategic asset allocation and macro at Fidelity. He said: "Short-term volatilities are quite extreme. This high volatility will continue. You have elevated volatility moving forward because the fundamental rules of the game, the economic world, are changing." Ahmed said this on the sidelines the IMAS Investment Conference 2025 and Masterclass in Singapore. Investor confidence in U.S. asset prices remained fragile, and the dollar dropped on Thursday after a week of gains on Trump's U turn on firing Powell. The dollar dropped 0.15% against the yen to 143.24. The euro rose 0.15%, to $1.1331. Meanwhile, the Swiss franc increased by 0.2%. The 30-year yield was little changed, at 4.3675 percent. Trump's change of heart on Powell appeared to lessen the threat to the U.S. fiscal and monetary credibility. The benchmark 10-year rate was down by about 2 basis points, to 4.3675%. Beth Hammack, President of the Federal Reserve Bank of Cleveland, said that on Wednesday there is still a lot of uncertainty about the future. She urged the central bank to be cautious in its monetary policy and to monitor the economy's performance. The markets are expecting a rate cut of about 80 basis points by December. Oil prices have stabilized in other markets after a drop in the previous session. Sources said that OPEC+ will consider accelerating their oil production increases in June. Brent crude futures rose 0.2% to $66.26 per barrel while U.S. Crude also increased 0.18% to 62.38 per barrel. Gold continued its march towards a new record high. The yellow metal rose 1.2% to $3,329.03 per ounce.
-
Oil prices steady after 2% decline on possible OPEC+ production increase
Oil prices rose early on Thursday, after falling by nearly 2% the previous day. Investors weighed a possible OPEC+ production increase against contradictory tariff signals from White House as well as ongoing U.S. Iran nuclear talks. Brent crude futures gained 6 cents or 0.09% to $66.18 per barrel at 0038 GMT. U.S. West Texas Intermediate Crude rose 7 cents or 0.11% to $62.34 per barrel. The previous trading session saw prices fall 2% after it was reported that three sources familiar with OPEC+ discussions said several OPEC+ member countries will suggest to the group that they increase oil production for a second consecutive month in June. The members had a dispute over the production quotas. Prices rose on signs that U.S.-China trade talks could be nearing completion. The Wall Street Journal reported the White House was willing to reduce its tariffs against China by as much as 50% to start negotiations. Scott Bessent, U.S. Treasury secretary said that the current tariffs of 145% for Chinese products and 125% for U.S. goods were not sustainable. He did not give a specific number but he stated that they would need to be reduced before any trade talks could take place between both sides. White House Press Secretary Karoline leavitt told Fox News in an interview on Wednesday that the tariffs on Chinese goods would not be reduced unilaterally. Rystad analysts believe that a prolonged U.S. China trade war would cut China's growth in oil demand by half, to 90,000. barrels per day. The Financial Times reported that Trump was also considering tariff exemptions for imports of car parts from China. The U.S. will meet with Iran for a third round this weekend to discuss a possible agreement that would impose restrictions on Tehran's nuclear enrichment program. This could put downward pressure on the oil price. The market is looking for signs that a U.S. and Iran rapprochement may lead to a easing of sanctions against Iran oil, which would boost supply. The U.S. imposed new sanctions on Iran's oil sector on Tuesday, a move that was criticized by the Iranian foreign ministry as demonstrating a lack of "goodwill and seriousness" in regards to dialogue with Tehran. (Reporting Colleen Waye; Editing Sonali Paul).
Trump prepares reciprocal tariffs amid trade war fears
Donald Trump's advisers on trade were finalising plans for the reciprocal duties that the U.S. President has promised to impose against every country which charges duties on U.S. imported goods, raising fears of an expanding global trade war.
Separately the trade ministers from the 27 countries of the European Union are due to meet by video conference to decide their response to the European Commission President Ursula von der Leyen's statement that tariffs against the EU "will not be ignored".
Trump shocked the markets on Monday with his decision to impose tariffs starting March 12 on all imports of steel and aluminum. Mexico, Canada, and the European Union condemned the plans, while Japan, Australia, and other countries said they wanted exemptions.
Industries that depend on imports of steel and aluminum scrambled to reduce the expected cost increase.
Trump announced last week that he would impose an additional 10% tariff for Chinese goods starting February 4. Chinese countermeasures will be implemented this week.
He delayed the 25% tariff on goods coming from Mexico and Canada by a month, until March 4, to allow for negotiations about steps to secure U.S. border security and stop the flow of fentanyl.
Many U.S. workers have welcomed the metal tariffs imposed on Monday, but manufacturing-heavy companies are deeply concerned about the next steps. They warn that the tariff increase will reverberate throughout supply chains and affect all businesses who rely upon the materials.
Ahold Delhaize, a supermarket chain, and Siemens Energy have warned that tariffs will lead to higher prices because they want to pass on additional costs from imports.
Steelmakers in Europe are also concerned that U.S. Tariffs could lead to an influx of cheap steel into Europe. French steelmaker Aperam
If that happens, Brussels will intervene and curb imports. Austria's specialty steelmaker voestalpine
Call us today to learn more about our services.
On the EU to immediately take countermeasures
Australia's Industry Minister meanwhile stated that the U.S. Tariffs will not derail Australia's plan to increase "green" aluminum exports.
Ed Husic: "The world is in high demand for aluminium. We need it to transition to net zero."
Reporters at the National Press Club, Canberra. "Our American friends, do you want to pay more money for this product you have a high demand for?"
MONUMENTAL UNDERTAKING
White House officials are being tight-lipped regarding the timing or structure of the next tariffs. One source has said that the announcement could come later this week.
Trump announced on Monday that he will announce reciprocal tariffs within the next two business days for all countries who impose duties on U.S. products. He also said he is looking into separate tariffs for cars, semiconductors, and pharmaceuticals.
Experts in trade say that structuring the reciprocal duties Trump wants presents big challenges to his team. This may explain why the latest tariffs were not announced Tuesday.
William Reinsch said Trump officials can choose between a simple 10% or 20% flat tariff rate or a messier option that requires separate tariff schedules that match U.S. rates to those of other countries.
A source who tracks the work on tariffs reported that details are still being worked out as late as Tuesday.
Damon Pike is a principal and trade specialist with BDO International's U.S. division. He said that the reciprocal tariffs Trump envisaged would be a massive undertaking given that the 186 member countries of the World Customs Organization have different duty rates.
"At an international level, you'll find 5,000 different product subheadings at the 6-digit level. That's 5,000 times 186 countries. "It's like an artificial intelligence project," said he.
Trump could also use the International Emergency Economic Powers Act to justify tariffs on China, and those pending against Canada and Mexico.
Pike added that, without IEEPA's help, it would take some sort of agency action before trade remedies could be imposed. "But everything seems to move quickly," he said.
Reinsch stated that imposing reciprocal tariffs also ceded the control of U.S. tariff rates to other countries.
"For instance, if Colombia had a high coffee tariff to protect their industry, we'd put a similar high tariff on Colombian Coffee, even though we do not grow coffee. "The only ones who would suffer are the U.S. consumer," he said.
(source: Reuters)