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Grossi, IAEA's Grossi, defends sending staff to Zaporizhzhia nuclear plant through Russia
Rafael Grossi, the U.N. chief nuclear watchdog, defended his decision on Monday to send staff across Russian territory in order to relieve their colleagues at the Russian-occupied Zaporizhzhia Nuclear Power Plant in Ukraine as an "extraordinary" exception. Since September 2022 - roughly six months after Russia's full-scale invasion in Ukraine - the International Atomic Energy Agency has had a small presence there. Since then, the IAEA has replaced or rotated its staff 26 times. Ukraine's Energy Minister sent Grossi a note saying that the latest rotation which, for the first time, passed through Russian territory was "in violation" of Ukraine's sovereignty, the Ukrainian energy ministry announced on Monday. German Galushchenko, the Energy Minister of Ukraine, said that Russia deliberately prevented rotations. The latest one occurred without Ukraine's consent. The Ukrainian Foreign Ministry also expressed its disapproval of the rotation over the weekend. The IAEA and Ukraine both consider that the plant is Ukrainian. Grossi said at a press conference that the only reason for the move was to ensure the safety of the workers. The team that replaced itself over the weekend was there since December 10, which is a much longer period than normal. A drone destroyed the rear of an IAEA vehicle during a December rotation. However, no one was injured. Grossi called the attack unacceptable without naming those responsible. Both Russia and Ukraine accuse each other of drone attacks at Zaporizhzhia and other military activities. Grossi added that he informed Ukrainian officials, including President Volodymyr Zelenskiy. "I don't think it is a good idea to read more into this, because I am responsible for my staff's security. That is the only reason we have made this extraordinary exception to rotate in this manner." (Reporting and editing by Aidan Lewis; Francois Murphy)
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US construction spending declines unexpectedly in January
U.S. Construction Spending unexpectedly declined in January. This was mainly due to a decrease in multi-family housing construction. Census Bureau of the Commerce Department reported on Monday that construction expenditures dropped by 0.2%, after a 0.5% rise in December. The economists surveyed by expected that construction spending would remain unchanged. Construction spending in January increased by 3.3% year-over-year. Spending on private construction projects fell by 0.2%. Residential construction investment fell by 0.4% but new single-family project expenditures rose by 0.6%. The high mortgage rates are still a problem. This situation could worsen if additional duties were imposed on imports such as appliances and lumber. A surplus of unsold homes is on the market due to weak demand. The President Donald Trump ordered a new investigation into trade that could add more tariffs to imported lumber. This would be in addition to the existing duties on Canadian softwood timber and 25% tariffs due on Tuesday on all Canadian and Mexican products. In January, spending on multi-family housing units fell by 0.7%. The spending on home improvements continued to increase. In January, the investment in non-residential private structures such as offices and factories remained unchanged. The spending on public construction projects increased by 0.1%. State and local spending fell by 0.1% while federal government expenditures grew by 3.2%. Reporting by Lucia Mutikani; Editing and proofreading by Andrea Ricci
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Gold prices rise on weaker US Dollar and tariff worries
Gold prices increased on Monday, after falling to a low of three weeks in the previous session. This was due to a weaker US dollar and investors seeking safe havens in response to fears over President Donald Trump's policies regarding tariffs. As of 09:29 am, spot gold rose 0.5% to 2,873.11 per ounce. ET (1429 GMT). U.S. Gold futures increased 1.3% to $2.884.50. Daniel Pavilonis is a senior market strategist with RJO Futures. He said: "I believe we're in an extremely bullish market, and gold could get much higher than $3,000. With tariffs and potential retaliation, I still think that you're going to see central banks coming in and buying." The dollar index fell by 0.8%. This is a move away from the two-week-high reached in the previous session. It reflects a weakness which makes gold priced in dollars less expensive for buyers who hold other currencies. Trump will decide on Monday the level of tariffs that he intends to impose on Tuesday morning on imports coming from Canada and Mexico. He had promised to impose a 25% tariff on imports from Canada and Mexico, but that was put on hold for a period of one month ending on Tuesday. Trump had threatened China last week with an additional 10% duty that was also scheduled to take effect Tuesday. This would result in a total of 20% tariff. Investors are also looking to the ADP Employment Report due on Wednesday, and the U.S. Non-farm Payrolls report due Friday for further clues about the Federal Reserve's policy. The Fed's interest rate policy, which has been unchanged since December, is causing uncertainty in the wake of the new data. Investors are less interested in non-yielding, or non-returning gold when interest rates increase. Spot silver rose 1.7% to $31.68 per ounce. Platinum gained 1.3%, to $959.90. Palladium increased 2.1%, to $938.96. UBS analysts wrote in a report that they see "room for greater gains in silver, as the gold rally is consolidating and global industrial production indicates a modest improvement."
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As Tuesday deadline approaches, Trump will decide US tariff rates on Mexico and Canada
Donald Trump, the U.S. president, is expected to announce on Monday which tariffs will be imposed on Canada and Mexico on early Tuesday morning. This decision comes amid final-minute negotiations on border security and efforts by the U.S. government to stop the flow of fentanyl. Trump has promised to impose tariffs of 25% on all imports coming from Canada and Mexico. The Canadian energy sector will be subjected to 10%. CEOs and economists claim that the tariffs, which cover more than $900 Billion in annual imports to the United States from Canada and Mexico, would be a major setback for the North American economy. Tariffs will be in effect on Tuesday at 12:01 am EST (0501 GMT). Howard Lutnick, the Commerce Secretary, said on Sunday that Trump might not impose all the tariffs. He added that Trump would decide the exact amount. Lutnick, a Fox News reporter, said that Trump was considering the final tariff level because Mexico and Canada had "done a reasonably job" in securing U.S. border. "He is sort of thinking right now about how exactly he will play with Mexico, Canada and the United States. This is a fluid scenario." On Tuesday, there will be tariffs imposed on Mexico and Canada. We'll leave it up to the president and his staff to decide what tariffs are. Lutnick reported that Trump will also raise the fentanyl tariffs on Chinese imports from 10% to 20% on Tuesday, unless Beijing stops fentanyl trafficking to the U.S. Trump praised the decline of illegal border crossings in a Truth Social post published on Sunday, saying that they were "THE WEAKEST EVER REPORTED". Thank you!!! ". On Friday, senior Canadian and Mexican officials met with Trump Cabinet members to discuss efforts to secure their border. However, Trump cited the lack of progress made in reducing deaths from fentanyl-related overdoses. The Centers for Disease Control and Prevention estimates that 72,776 Americans will die from synthetic opioids by 2023, primarily from fentanyl. NAVARRO : TRUMP UNWAVERING Peter Navarro, White House Trade Advisor, told CNBC Monday that he doesn't see Trump wavering in his stance on tariffs. He did not specify the level or scope of tariffs for Canada or Mexico. He said that the impact of any tariffs on inflation would be "second order small". I don't think the president will waver, as he is determined to make America strong and prosperous with (more) factory employment and real wages rising. He has chosen this path." Trump issued a technical order late Sunday that lays the foundation for tariffs against Mexico and Canada. The order declared that packages of low value from Mexico and Canada cannot enter the U.S. free of duty under the "de minimis exemption" for packages below $800. The order stated that the ban would take effect after the Commerce Department determined that the screening measures were adequate. Trump suspended the de minimis exemption for low-value Chinese package on February 4, but U.S. Customs and Border Protection Agency was forced to pause this suspension as packages were piling at U.S. Airports without a screening method. Officials say that fentanyl traffickers are using the de minimis package exception to bring fentanyl, its precursor chemicals and other drugs into the U.S. They often do not screen the packages. (Reporting and editing by Alistair Bell; Additional reporting by Susan Heavey, David Lawder, and Andrea Shalal)
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At least 15 people have died in a bus crash in Bolivia
Police said that a truck travelling along a highway in southern Bolivia collided early Monday morning with a bus, pushing it off the road. At least 15 people were killed. Police said that the bus had rolled down a ravine for 500 meters (1640 feet). Police said that 19 injured people were sent to a hospital in the area. Rescuers have been working to recover bodies from the victims. The death toll is estimated between 15 and twenty people. Police added that the driver of the truck had been arrested and the police are investigating the cause of accident. This crash occurs just days after the deaths of more than thirty People were killed Two buses collided in the same area.
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Police report that one person has died after a car crashes into a crowd in the German city of Mannheim.
A police spokesperson reported that a vehicle drove into a crowd in Mannheim, west Germany. The car hit one person and injured several others. The spokesperson said that the car's driver was detained but it is not clear if there are any other suspects. The police are urging the public to avoid this area. The incident took place as people gathered for carnival parades in Rhineland cities. Local media reported that a black SUV was driving at high speeds when it hit a group of pedestrians as they were travelling from Paradeplatz, the city's centrally located square, towards the landmark water tower. After a series of violent attacks, such as deadly car rammings that occurred in Magdeburg, Germany in December, and Munich, Germany last month, along with a stabbing that took place in Mannheim, Germany in May 2024, security has become a major concern. The police are on alert for the carnival parades in Cologne and Nuremberg after accounts linked to the Islamic State militants group called for an attack on the events. Reporting by Alfio Marinao in Mannheim, and Rachel More from Berlin. Writing by Friederike Hiene, editing by Thomas Seythal.
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Wall Street prepares for possible fallout when Trump tariffs against Canada and Mexico are near
The Trump administration has delayed the implementation of new tariffs against Mexico and Canada for a month. The reprieve will end on Tuesday. The U.S. Commerce secretary Howard Lutnick confirmed that the tariffs against Canada and Mexico will take effect on February 2. Donald Trump, however, will decide if the proposed tariff rate of 25% is maintained. Canada exports mainly crude oil, other energy products and cars and car components as part of North American auto manufacturing chains. Mexico exports a variety of goods from the auto and industrial sectors. What top brokerages say about the impact of tariffs on U.S. businesses, the economy and financial markets. Profits and Companies Goldman Sachs estimates that the announcements will reduce their S&P 500 earnings-per-share (EPS) predictions by approximately 2% to 3 %. The company said that every five percentage points increase in U.S. Tariff rates could reduce the EPS between 1% and 2%. Barclays analysts warned last month that tariffs against Canada and Mexico could result in a 2.8% drop in the S&P 500 profit if they were fully implemented. The materials and discretionary sectors are most at risk. Citigroup stated before the announcement that a small shock to import prices in a narrow scenario would likely result in a reduction of 50 basis points in S&P's gross margin. However, a larger tariff could cause margins to shrink by 250 basis points. BlackRock warns that exporters' profit margins could be affected if high inflation rates cause interest rates to rise and a dollar rally reaches its peak in 2022. AUTOMAKERS According to Daniel Roeska of Bernstein, the U.S. automobile industry could be facing an extra cost of $40 billion per year, or an increase of 7% on average for each car. Goldman Sachs estimated that Canada and Mexico accounted for almost one-fifth the value of U.S. automobile consumption and production before the tariffs. RBC analysts wrote in a January 28 note that the surcharges on Mexican imports may prove to be a problem to General Motors and could lead to a shift of production to the U.S. Steelmakers J.P. Morgan has said that European steelmakers who have U.S. supply chains integrated into Mexico, Canada, and Europe, will be directly impacted. Analysts point out that ArcelorMittal and its Finnish counterpart Outokumpu are exposed to Mexican steel and Canadian steel. Acerinox, on the other hand, has a high U.S. production. J.P. Morgan analysts stated in a note dated Feb. 3, that 70% of U.S. aluminium imports come from Canada. SPIRIT J.P. Morgan estimates that around 85% of the consolidated sales of Corona Beer maker Constellation Brands come from imported Mexican beer. Piper Sandler estimates that tariffs could have a negative impact on Constellation's fiscal 2026 earnings by $3.75 to $3.75 a share if they last the full fiscal year. OTHERS BofA Global Research stated on January 29, that tariffs against Mexico could harm appliance distributors like Whirlpool. Builders FirstSource may benefit from tariffs on Canadian imports of lumber in the short term, but this would be offset by a decrease in homebuilder starts. INFLATION- Barclays' strategists say that the tariffs may lift the Fed’s preferred inflation indicator, the personal consumption expenditures index, by 35-40 basis point on an annual basis, over a 12-month period. Goldman Sachs estimated that tariffs would increase the U.S. PCE index by 0.9% if they were implemented. This is excluding volatile products such as energy and food. $1 = 0.9700 euro (Reporting and editing by Sriraj Kalluvila, Shounak Dasgupta, and Johann M Cherian in Bengaluru)
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Ivory Coast's gold production expected to hit record high in this year
Jean-Claude Diplo told a leading industry official that the Ivory Coast is expecting to reach a record gold production this year. The mine Lafigue, which opened in 2024, will be a major contributor. To diversify income sources, the world's biggest cocoa producer wants to develop its neglected mining sector. Lafigue, located 500 km north-east of Abidjan, the commercial capital of West Africa, and operated by Endeavour Mining (a London-listed company), is expected to produce 180,000 to 210,000 ounces gold in 2025. Diplo's term as head of the mining association GPMCI, which ended on Friday evening, stated that Ivory Coast gold production will rise to 62 tons this year, from 58 tons by 2024. In an interview in Abidjan with Diplo, he said that the growth would come from Lafigue's gold mine which was about to enter full production. He also added that heavy investments in another mine will allow the country to boost its output. Diplo predicted that Ivory Coast will soon surpass Mali and Burkina Faso and achieve Ghana's production levels. "We can go very fast... According to our projections, if we remain disciplined as we do today, in 2030 we will be at par with Ghana. Barrick Gold, Perseus Mining, and Roxgold also operate in Ivory Coast. Loucoumane Colibaly is reporting; Anait Miridzhanian and Kirby Donovan are editing.
Iron ore prices at a 6-week low due to rising US tariff tensions
Iron ore futures declined for the sixth consecutive session on Monday, as trade tensions increased between the U.S.
The May contract for iron ore on China's Dalian Commodity Exchange ended the daytime trading 2.81% lower, at 779.5 Yuan ($106.91).
In the early part of the session, prices fell to 777.5 Yuan, their lowest level since January 14.
The benchmark iron ore for April on the Singapore Exchange fell 2.53% to $99,85 per ton.
U.S. Treasury secretary Scott Bessent announced on Friday that Mexico had proposed matching U.S. Tariffs against China, after U.S. president Donald Trump vowed to impose another 10% tariff on Chinese imports.
Trump announced that he would impose 25% tariffs starting March 4 on all imports of steel and aluminum. This sparked a new round of trade tensions with China.
The market discussions about China's potential plans to reduce crude steel production by 50 million tonnes in 2025 also weighed on the iron ore price.
China's state planner and state-backed China Iron and Steel Association failed to respond to our request for comment.
A private sector survey released on Monday showed that China's manufacturing activity increased at a faster rate in February due to a stronger demand, supply, and export orders.
The survey's positive trend is in line with the official PMI data, released on Saturday. This showed that manufacturing activity in February grew at the fastest rate in three months.
The reading should reassure officials about the fact that stimulus measures implemented last year have helped to recover the economy amid slow demand and a struggling real estate sector.
Coking coal and coke, which are used in the steelmaking process, have both risen by 0.96% and 0.2%, respectively.
The benchmark steel prices on the Shanghai Futures Exchange were flat. The price of rebar fell by 0.66%. Stainless steel gained 0.04%. Wire rod dropped around 0.1%. Hot-rolled coils were flat. $1 = 7.2911 Chinese Yuan (Reporting and editing by Michele Pek, Sumana Dhaniwala and Mrigank Dahniwala).
(source: Reuters)