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New York Times Business News - February 26, 2019
These are the most popular stories from the New York Times' business pages. These stories have not been verified and we cannot vouch for the accuracy of these reports. Tesla announced on Tuesday that certain drivers in China can use Autopilot to assist with lane-changes and other advanced tasks on city streets. New York Public Radio announced on Tuesday it would be laying off about 7% its staff due to a continuing financial crisis. GenBioPro, America's largest abortion pill manufacturer, asked a Texas judge on Tuesday to add the company to a list of defendants of a lawsuit brought in October by the three Republican attorneys general of the states. GenBioPro is now involved in the first major abortion legal battle of President Trump's 2nd term. (Compiled by Bengaluru newsroom) - U.S. president Donald Trump signed an Executive Order Tuesday that directed his Commerce Secretary, Howard Lutnick to launch an investigation to determine whether the importation of copper into the United States and the production of this material abroad pose a threat to the economic and national security of America. (Compiled by Bengaluru Newsroom)
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As US stockpile reports counter rising supply concerns, oil prices edge up
After an industry group announced that U.S. crude stocks fell last week, oil prices increased marginally on Tuesday. Brent crude was up 20 cents or 0.3% to $73.22 per barrel at 0430 GMT. U.S. West Texas Intermediate Crude Oil Futures rose 18 cents or 0.3% to $69.11. Market sources reported on Tuesday that U.S. crude stockpiles fell by 640,000 barrels during the week ending February 21. They cited data from the American Petroleum Institute. The official U.S. data on stockpiles is expected later Wednesday. In a Wednesday note, ING commodities analysts said that if confirmed by the EIA today, this would be the first drop in U.S. oil inventories since the middle of January. The analysts polled estimated that U.S. crude stockpiles increased by 2.6 million barrels last week. On the supply-side, ING said that prospects for a deal between Russia and Ukraine were improving. The market was also looking at the possible implications of a deal on minerals between the U.S.A. and Ukraine. The ING strategists stated that "this would bring us closer to the lifting of Russian sanctions, removing a lot of the uncertainty in supply hanging over the markets." Sources familiar with the issue said on Tuesday that the U.S., Ukraine and other countries have agreed to the terms of a draft mineral deal which is central to Trump's plans to end the conflict in Ukraine as quickly as possible. After pulling oil prices down more than 2% on Tuesday, gloomy economic reports out of the U.S.A. and Germany have capped gains. Brent crude oil closed at its lowest level since December 23 while WTI registered its lowest settlement in December 10. Consumer confidence in the U.S. declined at its fastest pace in three-and-a half years in February, while 12-month inflation expectations surged. The German economy contracted in the final three months of 2024, compared to the previous quarter. The oil prices have been affected by fears that President Donald Trump’s decision to impose tariffs on China and other trading partners may add pressure to the economy. ANZ Bank analysts said in a client note that this has helped ease concerns about a tighter oil supply near term despite new U.S. Sanctions against Iran. Rory Johnston, an analyst at Commodity Context, said that even though U.S. policies could lead to a reduction of up to one million barrels per day in Iranian crude oil exports, OPEC+ countries hope to counter any loss in supply by bringing more supply to market in the months to come. Reporting by Shariq KHan in New York, Jeslyn Lerh from Singapore and Muralikumar Aantharaman. Editing by Kim Coghill and Muralikumar Aantharaman.
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Transocean Barents Gearing Up for Drilling Job in Romanian Black Sea
On a frigid morning on the Black Sea the sun is glaring into the quiet navigation room of the massive semi-submersible drilling rig Transocean Barents, anchored in Romania's Constanta port.In a matter of weeks, the rig - known as the Mighty Barents - will travel 160 kms out to sea and start drilling the 10 gas wells that make up Neptun Deep, one of the European Union's most significant gas deposits which will double Romania's production and potentially turn it into a net exporter at a time when the EU is winding down Russian gas purchases.Jointly owned by oil and gas group OMV Petrom, majority-controlled by Austria's OMV, and Romanian state-owned gas producer Romgaz, Neptun Deep holds an estimated 100 billion cubic meters (bcm) of recoverable gas."Once the ship goes out to sea it can start drilling in a few days," said OMV Petrom senior executive Cristian Hubati, adding it was a matter of weeks before that happened.On track to deliver first gas in 2027, Neptun Deep is Romania's biggest energy project since it completed its second nuclear reactor almost two decades ago.The project faces opposition from the country's rising far right, who regard gas exports as a betrayal of national interest, and protests and legal challenges from environmental activists, as well as fiscal uncertainty as the government seeks to lower the European Union's largest budget deficit.To get past the bridges of the Bosphorous Strait and into the Black Sea, Transocean's rig, which has previously drilled in Canada, Norway, Cyprus and Lebanon, has had to lower its ram guides for the first time since it became operational in 2009.Employees from 20 different companies were providing services on the rig, which has a cinema, a gym, a music room, a cafeteria and offices split over four levels.Once the drilling starts, with some wells at depths of more than 1,000 metres, the rig will host up to 140 staff, which will rotate every four weeks round the clock for up to 18 months, manager Pierre Gully said.(Reuters - Reporting by Luiza Ilie; Editing by David Evans)
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London copper prices rise on weaker dollar following fresh Trump tariff threats
London copper prices rose on Wednesday as a result of a weaker dollar, after U.S. president Donald Trump ordered an investigation into possible new tariffs on imports to boost U.S. copper production. As of 0355 GMT, the price for three-month copper at the London Metal Exchange increased by 0.8% to $9472 per metric ton. On the day, the U.S. Dollar sagged to a new 11-week low compared with its major counterparts. The greenback price of commodities is cheaper for buyers who hold other currencies. Trump signed an executive order at the White House to direct Commerce Secretary Howard Lutnick, in order to stop what his advisors see as China's move to dominate the copper market on the global scale, to launch a national-security investigation under Section 232 of 1962 Trade Expansion Act. Trump used the same law in his first term, to impose global tariffs of 25% on steel and aluminum. Soni Kumari is a commodity analyst at ANZ. She said that the market was a little distorted due to news flow. Other metals include LME aluminium, which rose by 0.1% to 2,641.5 dollars, LME Zinc, up 0.3% to $2 819 dollars, Nickel, up 0.2% at $15,370. Lead, meanwhile, gained 0.8%, to $2 008, and tin, down 0.2%, to $32,700. SHFE aluminium rose 0.3%, to 20,605 Yuan ($2,839.09), SHFE copper fell 0.3%, to 76.880 Yuan, SHFE zinc dropped 0.6%, to 23,550 Yuan, Nickel slipped 0.5%, to 124.160 Yuan, Lead gained 0.03%, to 17,135 Yoan, and Tin eased by 0.5%, to 262,060 Yan.
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Treasury yields rise slightly as dollar is weakened by US growth concerns
The U.S. Treasury yields recovered some ground after the House of Representatives on Wednesday. You can also read about how to get ahead. The dollar and oil prices are struggling due to growing concerns about the U.S. economic outlook. After Trump ordered an investigation into possible new tariffs against copper imports on Tuesday, U.S. prices of copper rose by more than 4% overnight. The Republican-controlled U.S. House of Representatives late on Tuesday narrowly passed Trump's $4.5 trillion tax-cut plan, sending the budget resolution to the Senate, where Republicans are expected to take it up. Investors anticipate that more debt will be issued in the future, and the 10-year benchmark yield rose by roughly 3 basis points. The yield on the two-year bond rose by 2.7 basis points to 4.129%. Tony Sycamore is a market analyst for IG. He said, "(The plan's) progress was a bit faster than expected." You can see how yields are changing, and it caught people off guard. In the previous session, yields fell to their lowest level in several months as traders increased bets on more Federal Reserve rate reductions this year due to growing concerns about the outlook for the largest economy in the world. The latest survey data released on Tuesday shows that U.S. consumers' confidence dropped at the fastest pace in three-and-a half years in February. This is the latest of a series of surveys which indicate that both businesses and consumers are becoming more concerned about the policies of the Trump administration. "We are not surprised by the low consumer confidence figures. We are surprised that they're coming out now, even before the tariffs have an impact on consumers," said Joseph Capurso of Commonwealth Bank of Australia. Fed funds futures indicate that nearly 60 basis point of easing will be priced in before year's end, up from 40 bps just a week earlier. This weighed down the dollar, especially against the yen. In the previous session, the greenback fell to a four-month low versus the Japanese currency. The last time it traded, the yen was 0.25% higher than its previous price of 149.38. This is due to the recent rebound in U.S. Treasury rates. The euro, in other currencies, fell 0.11%, to $1.0502. However, it was still near its one-month high. The pound was also within striking distance of a two-month high and bought $1.2651 last. Capurso, of CBA, said that the dollar is weakening because of the soft economic data. But at some point you reach a threshold, where safe-haven flows are directed into the U.S. Dollar. "If things really get bad in America, say, the market begins pricing in a possible recession or even something that is close to one, the U.S. Dollar will always go up," said CBA's Capurso. The outlook for oil demand is also clouded by fears of a slowing U.S. economy. Brent futures rose by 0.08%, to $73.08 per barrel after falling more than 2% the previous session. U.S. West Texas Intermediate crude (WTI), however, increased by 0.09%, to $68.99 a barrel, reversing a portion of Tuesday's 2.5% decline. Gold prices rose 0.2% on Wednesday, thanks to safe-haven flows. The ounce price increased to $2,920.83. ASIA SHARES UPBEAT On Wednesday, MSCI’s broadest Asia-Pacific share index outside Japan gained 0.67%, boosted by a rise in Chinese stocks. Hong Kong's Hang Seng Index soared by more than 2%. The Hang Seng Tech Index also rose 3.6%. The Shanghai Composite Index rose 0.5% while the CSI300 blue chip index increased by 0.15%. Chinese stocks are on fire in the last few weeks. DeepSeek's AI breakthrough has reignited interest among investors in China's technological capabilities. The rally was slowed down earlier this week by news that the Trump Administration plans to tighten the semiconductor curbs on China. Also, after the U.S. president signed a memo directing the Committee on Foreign Investment to restrict Chinese investment in strategic areas. Vishnu Varathan is the head of Asia ex-Japan macro research at Mizuho. Not in China's particular case. The U.S. is determined to cause significant industrial pain, which will compromise technological advantage and manufacturing capacity or clout. Japan's Nikkei index fell by more than 1%. After a mixed session, U.S. stocks futures have rebounded. Nasdaq Futures rose 0.5% and S&P500 Futures gained 0.35%. The futures of the EUROSTOXX50 index also rose by 0.46%, while FTSE futures gained 0.43%. Nvidia, the AI sector's poster child, will report its earnings for the quarter on Wednesday. This could provide clarity and justify high valuations. Due to the slow returns and breakthroughs made by China's DeepSeek, investor scepticism about the billions of dollars that U.S. technology firms have invested in AI infrastructure has increased. Jacob Falkencrone, global head of Saxo’s investment strategy, said that any signs of weakness within Nvidia’s report would have a significant impact on investor sentiment toward AI stocks in general. This earnings report isn't about Nvidia...it's about if the AI revolution can continue its rapid pace.
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Trade tensions between the US and China cause a drop in iron ore prices
The price of iron ore futures fell for the third consecutive session on Wednesday. This was due to a deteriorating outlook for Chinese exports, and rising tensions in trade between the U.S. As of 0301 GMT, the most-traded contract for May iron ore on China's Dalian Commodity Exchange was trading 0.61% lower. It was 815 yuan (about $112.29) per metric ton. The benchmark March ore traded on the Singapore Exchange rose 0.3% to $106.35 per ton. Last week, U.S. president Donald Trump signed a memo aimed at tightening restrictions on Chinese investments in strategic areas. This caused Chinese stocks to plummet on Tuesday. In a report, Hexun Futures, a Chinese consultancy, stated that the additional levies by Vietnam and South Korea will affect China's direct exports of steel, which in turn, will put pressure on prices. Last week, Vietnam announced that it would impose a temporary antidumping levy against some steel products imported from China. Meanwhile, South Korea has imposed tariffs provisionally on Chinese steel plates imports. On Wednesday, the U.S. dollar was still near its 11-week low compared to other major currencies. Dollar-denominated goods are cheaper for holders of currencies other than the dollar. Hexun added that the steel mills are now in full production and demand for raw materials is increasing. According to Chinese consultancy Lange Steel citing statistics by the China Iron and Steel Industry Association, in China, daily crude production at key steel companies increased 0.8% on a month-to-month basis to 2,151 million tonnes, while average daily steel production rose 4.2% to 2.037 millions tons. Coking coal and coke, which are both steelmaking ingredients, showed marginal losses. They were down by 0.46% each. The benchmarks for steel on the Shanghai Futures Exchange were flat. Hot-rolled coil and rebar both gained 1%. Stainless steel and wire rod dropped 0.53%. $1 = 7.2579 Chinese Yuan (Reporting and editing by Janane Vekatraman).
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London copper prices rise on weaker dollar following fresh Trump tariff threats
London copper prices rose on Wednesday as a result of a weaker dollar, after U.S. president Donald Trump ordered an investigation into possible new tariffs on imports to boost U.S. copper production. As of 0244 GMT, the price for three-month copper at the London Metal Exchange increased by 0.6% to $9462 per metric ton. On the day, the U.S. Dollar sagged to a new 11-week low compared with its major counterparts. The greenback price of commodities is cheaper for buyers who hold other currencies. Trump signed an executive order at the White House to direct Commerce Secretary Howard Lutnick, in an effort to stop what his advisers viewed as China's move to dominate the copper market globally, to launch a national-security investigation under Section 232 of 1962 Trade Expansion Act. Trump used the same law in his first term, to impose global tariffs of 25% on steel and aluminum. Soni Kumari is a commodity analyst at ANZ. She said that the market was a little distorted due to news flow. Other metals include LME aluminium, which was down by 0.06% at $2,637; LME zinc, up 0.2% to $2,816.5; nickel, up 0.3% at $15,375; lead, up 0.4% to $2,000 and tin, down 0.6% at $32,565. The price of SHFE aluminium rose 0.2%, to 20,580 Chinese yuan ($2,837.29) per ton. SHFE copper fell 0.03%, to 77.050 yuan. SHFE zinc dropped 0.7%, to 23,530 yuan. Nickel slipped 0.3%, to 124.350 yuan. Lead increased 0.2%, to 17,165 yuan. Tin declined 0.4%, to 262,330. ($1 = 7.2534 Chinese Yuan) (Reporting and editing by Sumana Niandy)
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Where does the US obtain its copper?
The U.S. president Donald Trump ordered on Tuesday a probe on possible tariffs on imports of copper to rebuild U.S. manufacturing of a critical metal for electric vehicles, military equipment, semiconductors, and a variety of consumer goods. An official at the White House said that the investigation would examine imports of copper concentrates, scrap, copper, and copper alloys. The result should be available soon. What you should know about U.S. Copper Imports US IMPORTS Just over half of the refined copper that is consumed in the United States each year is produced domestically. Over two-thirds are mined in Arizona where the construction of a new massive mine has been held up for over a decade. The remainder of refined copper is imported, which amounts to just under 1 million metric tonnes per year. The White House has framed these new tariffs to counter China's dominance on the global market. However, in reality the United States imports the majority of its refined copper products from the Americas. According to the United States Geological Survey, more than 90% (90%) of copper refined imports were made by Chile, Canada, and Peru last year. GLOBAL PRODUCTION China is the world's largest copper refiner, but it gets most of its ore from Latin America. According to the USGS, Chile and Peru mined a combined third of global cobalt last year. China, however, is increasing its influence over the world copper mining industry through its major investment in mines located in the Democratic Republic of the Congo. Due to massive Chinese investments in the African nation's mining industry, the DRC has now overtaken Peru as the second largest copper producer in the world. The Chinese copper sector dwarfs the rest. Last year, the country operated dozens of copper-smelters. According to the USGS, there are only two primary copper-smelters in the United States.
South Korea's political turmoil forces companies to act on their own tariff issues
South Korea's leaders of business are stepping up to counter the aggressive trade policies of U.S. president Donald Trump. They have hired his former aides, and they are lobbying Republican States out frustration at delays from their own government.
Trump's sometimes indiscriminate and sweeping trade measures have sparked a debate about how much international capitals can rely on the U.S., from politics to trade.
South Korea is facing the most serious political crisis since the 1970s after President Yoon Suk Yeol was impeached and briefly declared martial law in December.
Yoon's decision to align more closely with Washington amid the trade tensions between China & the U.S., has increased South Korea's dependence on the U.S., which accountedfornearly 20 percent of its total exports in the past year, making its businesses more susceptible to possible tariff changes.
A senior executive of a major conglomerate, who asked not to be named due to the sensitive nature of the topic, said: "We're frustrated."
The executive stated that the government had not discussed concrete plans with representatives of corporate companies to bring Trump to a negotiating table.
Officials from South Korean companies said that they are also concerned about the lack of support from their government when other leaders, such as those from Japan and India, have already met Trump to try and avoid damaging U.S. Tariffs.
Choi Sangmok, the Acting President of South Korea, has not yet spoken directly to Trump. He told lawmakers in early February that the acting leadership is limited in its ability to respond to changes to the U.S. Tariff System. He claimed that Korea could leverage its U.S. energy imports and investments in negotiations.
South Korea's Industry Minister will
Travelling is a great way to meet new people.
The ministry announced on Tuesday that it will be traveling to the U.S. in the coming week to discuss ways to increase cooperation in energy and shipbuilding and to push for a steel tariff exemption.
Two sources said that amid uncertainty about how soon the political crisis in Korea would be resolved, the Korean business association sent a group of executives from companies like Samsung, LG and SK to Washington, where they met with U.S. Commerce Secretary Howard Lutnick.
According to a source, Lutnick promoted investment in the U.S. at the meeting. The Korean delegation team's request was not immediately known.
Separate meetings are being organized by companies to meet with U.S. Government officials.
In a letter sent to shareholders in early November, Jose Munoz - the former U.S. head of Hyundai Motor who became the first foreign CEO for the South Korean company in November - said that the firm was in dialogue with the U.S. government to strengthen its significant investments, jobs creation, and economic impact.
Hyundai promoted Sung Kim to the position of president responsible for global government affairs, an ex-U.S. diplomat from Trump's first administration.
Three people with knowledge of the matter said that the company was looking to host a factory opening in Georgia. Two of the sources claimed the automaker wanted to invite Trump to attend the event.
South Korea has a number of major industries, including autos, semiconductors, and steel. The Trump administration is currently reviewing the import duties on these products.
Hyundai has said that no decision about the ceremony has been taken.
A major business conglomerate's executive said that its affiliates were also considering holding a Tennessee outreach event to promote their combined investments made in the Republican State as part of efforts at the federal level to gain political influence.
In a Bind
Analysts predict that a court ruling will be issued in March, deciding whether Yoon should be ejected or if his presidential powers are restored. If Yoon is removed from office, a 60-day election should be held to select a new President.
When Trump began his first term in 2017, Park Geun Hye was undergoing an impeachment hearing.
Former trade minister Yeo Ha-koo said that the Trump administration had moved more slowly with its tariff policies. This gave South Korea time to move, and helped it to win an exemption from steel tariffs in exchange for a quota which put a limit on export volumes to America.
Yeo stated, "Now they're moving at lightning-speed."
Unofficially, a Seoul government official stated that it was "having many difficulties" and that there were concerns about the future president not following through with commitments made by the interim government to the U.S.
Scott A. Snyder of the Korea Economic Institute of America, a Washington think tank, stated that the lack of communication between leaders in the two countries is a major obstacle.
He said that "that is something which just has to be waited," adding that it would be best for Korea to "lie low and avoid picking up its head in many of these areas."
(source: Reuters)