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Brazil's Petrobras and BNDES partners to buy carbon credits for Amazon region
The partners announced on Monday that Brazil's state oil company Petrobras, and Brazil's development banking institution BNDES had partnered to create a financing program for forest restoration initiatives in Amazonia. Petrobras, under the ProFloresta+ Program, will hold tenders for carbon credits generated by restoration projects. The winning bidders can apply for low-interest loans to establish projects from BNDES. The pilot phase of the program is expected to generate investments of 450 million reais (78.45 millions) for restoration. This will lead to the replanting and regrowth of 15,000 hectares of forest. Petrobras is expecting to sign contracts for long-term with up to 15 companies that will participate in an auction scheduled to take place in July. Magda Chabriard, Petrobras Chief Executive said that the company would open the door to green entrepreneurs obtaining subsidized credits. She added that the tender will establish the benchmark price of carbon credits from Brazilian restoration projects. Carbon credits are permits that can be traded to allow the owner of the credit to emit a certain amount of greenhouse gases. Each carbon credit allows the emission of 1 metric ton or equivalent in other greenhouse gases. Petrobras began buying carbon credits when it announced that it would offset carbon emissions by using its premium gasoline Gasolina Podium in 2023.
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Owner Stroll: Aston Martin will continue to be in F1 for many decades.
Lawrence Stroll, the team owner of the Silverstone-based outfit, said that the Aston Martin brand would be present in Formula One for many decades to come. Aston Martin has announced that it will raise more than 125 millions pounds ($161.9million) from Stroll, the company's chairman, as well as the sale of the stake in its F1 team, which is controlled and owned by the Canadian. The billionaire stated in a press release that "these moves demonstrate Aston Martin's position on the Formula One Grid is as secure and ever." Aston Martin and its British racing-green colours will continue to compete in Formula One, thanks to the long-term sponsorship agreement that AML has signed with AMF1. The team's title sponsor, Saudi energy giant Aramco said Stroll had asked investment bank Raine Group for help in finding a buyer for Aston Martin stake. They said that Rainey would work closely with AMF1’s commercial chief Jeff Slack in order to find a strategic investor, who could add value long-term to the team and brand. (Reporting Alan Baldwin; editing by Ken Ferris).
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Petrobras reduces diesel prices first time in over a year
Petrobras, the state-run Brazilian oil company, announced on Monday that it would lower its refinery gate prices for diesel fuel for the first time since more than a calendar year. This is because local prices are currently higher than import parity. In a press release, the company announced that it would reduce the price of diesel sold by distributors to 3.55 Reis ($0.6197 per liter) starting April 1. Gasoline prices will remain unchanged. This is the first time the oil giant has changed the diesel price since February when they raised it by nearly 7%. It's also the first change since December 2023. The good news is that the leftist president Luiz Inacio Lula has seen his approval ratings plummet in recent months due to high inflation. Petrobras, under Lula's leadership, has implemented a new pricing policy that is designed to protect Brazilian fuel prices from the volatility of international markets, while maintaining a profitable sales model for the company. Petrobras made the move in response to the strengthening of Brazil's currency against the U.S. Dollar this year. This occurred at a time when global oil prices were trading below the levels they were at the last price increase. Petrobras diesel prices were above the import parity for most of this week and were 2% higher on Monday according to Abicom. Magda Chabriard, CEO of Petrobras, said at an event in Rio de Janeiro, that the company will also lower the prices of jet fuel, but did not provide any further details.
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Comex gold stocks are on course to reach new records in the coming months
Analysts and traders claim that gold stocks in Comex storage facilities are likely to reach new records within the next few days, due to the possibility of tariffs preventing shipments from other countries to the United States. According to the latest data from Comex (part of CME group), gold in US warehouses has reached a record high of 43.3 millions troy ounces, worth $135 billion, compared with 17.1 in November, when Donald Trump became U.S. president. On Monday, spot gold prices soared to new highs of $3,100 an ounce. Bullion prices are up 19% this year, after a 27% increase in 2024. Sources say that although gold flows have slowed, they are still continuing to flow to the U.S., as Trump promised to announce a massive tariff policy on Wednesday. He has called this "Liberation Day." A source at a Swiss refinery said, "There's still material going to America almost every day." The world's largest bullion transit and refining hub is Switzerland. Comex received 25.4 million ounces worth $79 billion in gold between December and March as the threat of U.S. tariffs on imports increased the premium between Comex Futures and London Spot Prices. These flows of gold, which are carried by planes at high speeds, are the most obvious example of how uncertainty has affected the price and the physical state of the market. BNP Paribas estimates that the Comex gold stock is equal to 5 years' worth of U.S. gold consumption. This comes out to 8.8 million ounces per year. Adrian Ash, BullionVault's head of research in London said: "I wouldn't be surprised if gold exports from the U.S. started anytime soon." The market may see a trend reversal or at least a slight easing if gold is not included in U.S. tariffs. Ole Hansen is the head of commodity strategy for Saxo Bank. He said: "If this is confirmed, there's no reason that some of these bars shouldn't be sent back to London. It remains the main trading center for physical gold." London, which is the largest gold trading center in the world, has absorbed the shock of the massive supply to New York. Liquidity improved, as central banks lent money and stored their bullion in the vaults of the Bank of England (BoE). According to three sources who are familiar with the situation and requested anonymity in order to disclose operations, the waiting time for loading gold out of BoE vaults is now only 2-3 weeks, down from 4-6 weeks back in January. BoE has declined to comment. London Bullion Market Association reported 8,477 tons of gold as of end-February - still six times the amount of gold in Comex gold stock. Analysts say that the price discovery process is still in London. (Reporting and editing by Pratima Deai, Aurora Ellis and Polina devtt)
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Italy investigates drone flights over EU facilities, suspected spying
Two sources who have direct knowledge of the case said that Italian prosecutors opened an investigation on possible terrorism and espionage after a drone flew over a research centre for the EU in northern Italy several times. Sources said that the European Joint Research Centre in Ispra on Lake Maggiore reported five drone flyovers by commercial drones in March. The images suggested the drone was of Russian origin. The JRC was opened as a site for nuclear research in 1960. The source said that the Milan Public Prosecutor's Office has launched an investigation into terrorism-related spies, including those who spied on military or political targets. Italian Defence Minister Guido Crosetto said on X, that the allegations of possible industrial or military espionage are very serious. They fit a pattern he flagged previously. "A hybrid warfare is in progress." He said that it was as deadly as it was hidden. It's constant and suffocating. He didn't name any countries. NATO has accused Russia of hybrid attacks against the West, using hacking and sabotage as well as espionage. Russia has denied these accusations, claiming that the West is inflaming anti-Russian feelings. According to the JRC's website, the Ispra Centre is the third largest research campus of the European Commission after Brussels and Luxembourg. It deals with a wide range of issues including nuclear security and space, sustainable resource, migration, and transport. In a text message, an EU Commission spokesperson stated that the Commission was committed to protecting information, staff and network in the face of possible security threats. In this case, the spokesperson said that "we are not aware of any specific security threats or violations of the drone no-fly zones above the Commission Ispra Site". The two sources who had direct knowledge of this matter said that Ispra itself reported violations of its airspace. (Reporting and additional reporting by Giulia Segrit, editing by Crispiane Balmer, Ros Russel, Andrew Heavens, and Andrew Heavens).
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Stocks fall, gold reaches record levels as tariffs fuel recession fears
On Monday, global equity markets fell and gold reached a new record high after U.S. president Donald Trump announced that tariffs would cover virtually all countries. This stoked fears of a global economic recession due to a trade war. Trump's comments on Air Force One to reporters seemed to put an end to hopes that the levies could be restricted to a small group of countries who have the largest trade imbalances. Trump will receive recommendations for tariffs on Tuesday, and then announce the initial level on Wednesday. The auto tariffs are announced the next day. All three major Wall Street indexes are trading lower. Losses in technology, communication services, and consumer discretionary stocks lead the way. Gains were made by energy, consumer staples and utilities stocks. George Lagarias is the chief economist of Forvis Mazars. He said, "What Trump's administration has shown so far is you shouldn't expect a consistent strategy." This is what most scares markets. Markets hate uncertainty and inconsistency. The Dow Jones Industrial Average dropped 0.11% to 41.538.47. The S&P 500 declined 0.90% at 5,530.99. And the Nasdaq Composite was down 2.00% at 16,976.48. The STOXX 600 in Europe fell by 1.40%, its lowest level in nearly eight weeks. Major indexes in Frankfurt and London also fell between 1.7 and 2 percent. MSCI's broadest Asia-Pacific share index outside Japan fell 1.9%. Goldman Sachs analysts now see 35% of the chance that the U.S. will enter a recession. This is up from 20%. They expect Trump to announce on April 2 reciprocal tariffs averaging 15% for all U.S. trade partners. The data released on Friday highlighted the risks, as core inflation, a key indicator of inflation in general rose more than anticipated in February and consumer spending was disappointing. The March payrolls report, due Friday, is now even more important. Any result below the expected 140,000 increase will only add to the recession fears. Talley Leger is the chief market strategist of The Wealth Consulting Group, a New Jersey-based firm. In a slowing environment of growth, earnings will decelerate or even crash in a recession. This is another major fear on the market. "On the other hand, spiraling inflation would squeeze stock prices on the valuation channel." Gold prices continued their record-breaking run and reached a new high of $3128.06 Gold futures in the United States rose 1.3% to $3,126.60 per ounce. Spot gold increased 1.18%, reaching $3,120.27. On the currency markets, the dollar fell against the Japanese yen and rose against the euro due to the uncertainty surrounding tariffs. The dollar fell 0.13% against the Japanese yen to 149.63. The euro fell 0.27% to $1.0799. The dollar gained 0.48% against the Swiss Franc to 0.885 Franc. The dollar index (which measures the greenback in relation to a basket including the yen, the euro and other currencies) rose by 0.22%. Bond investors appeared to be betting that the Fed will cut rates this year by 80 basis points due to the slowdown of the U.S. economy. The yield on the benchmark 10-year U.S. notes dropped 3.5 basis points, to 4.219%. The yield on the benchmark German Bunds 10-year fell by 2.6 basis points in Europe to 2.706%. Fed Chair Jerome Powell's Friday speech, which follows a number of Fed speakers during this week, could provide a clearer picture on the outlook for interest rates. Brent oil rose by 1.41%, to $74.67 per barrel. U.S. crude gained 2.34%, to $70.99 a barrel. Trump also threatened to impose secondary tariffs on Russian oil buyers if he believed that Moscow was blocking his efforts to end Ukraine's war. Reporting by Chibuike OGOH in New York, Editing by Shri Navaratnam and Lincoln Feast; Aidan Lewis, Jan Harvey, Joe Bavier and Lincoln Feast
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Three missing US Army Soldiers found dead in Lithuania
Three of the four U.S. Army troops who went missing last week in Lithuania when their vehicle was stolen Sunk in a peatbog The Lithuanian President said that the search continues for the last soldier. Lithuania said on Monday morning that the armoured vehicles of the missing soldiers had been recovered in a military area in the Baltic state. On social media, Lithuanian President Gitanas Nuseda said: "I received the news with great sadness and grief of the tragic death of three U.S. Soldiers." He said, "Lithuania grieves with the American nation." Nauseda stated that the search and rescue operations would continue until a fourth soldier was found. The soldiers and vehicle were missing from the Pabrade Training Ground near the border of Belarus. Reporting by Andrius Sytas, Anna Ringstrom, and Louise Rasmussen; editing by Stine Jacobsen and Terje Solsvik
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Japan's bank lobby chair suggests that tariff-hit companies may require business turnaround financing.
The head of Japan's banking lobby has said that Japanese banks might need to provide business turnaround assistance to companies affected by tariffs imposed on them by Donald Trump's administration. This week, many large Japanese companies, including major exporters, manufacturers and suppliers, will be facing U.S. tariffs on steel and aluminum imports, as well as a 25% duty on imported cars and small trucks. In an interview, Junichi Hanzawa said, "We believe tariffs could result in a decline in corporate earnings." Hanzawa said, "We'll have to see if this burdens employment and wages and becomes a burden on companies and household repayments." A poll conducted in February showed that almost 90% of Japanese businesses view the Trump administration negatively. The majority cited trade policy, including tariffs, as the main factor. Hanzawa said that bank customers might also require turnaround assistance in addition to their normal financing. Hanzawa said that Japan's companies and banks remained committed to the decarbonisation effort despite the withdrawal by several major banks from Net Zero Banking Alliance. In the last month, Japanese signatories such as Mitsubishi UFJ Financial Group Sumitomo Mitsui Financial Group Norinchukin Bank and other Japanese banks have withdrawn from the framework following the withdrawal of Wall Street Banks. Hanzawa stated that "we don't think recent moves are connected to any change in the fundamental principles of Japanese banks regarding climate change." Hanzawa is the chief executive officer of MUFG Bank, MUFG Bank's banking division. Hanzawa, referring to MUFG's decision to withdraw from the system, said that it was a good tool for disseminating information. However, with major U.S. banks and Canadian banks pulling out of the system its influence has decreased. Hanzawa stated that MUFG does not intend to change its current commitments or strategy regarding carbon neutrality. (Reporting and editing by Anton Bridge, Miho Uranaka)
Stocks fall amid inflation worries and trade war concerns
Gold, the safe-haven asset, hit a new record high Friday. An index of global stocks fell as investors worried about a trade war that could be triggered by Trump's tariff decisions.
The latest inflation figures were a source of frustration for U.S. traders, but Trump's 25% auto import tariff and his plans to impose a much wider levies on next week continued to be a cause for concern.
All three major Wall Street indexes finished lower, and recorded their third consecutive loss. Communication services, consumer discretionary and technology stocks were the biggest losers. Utilities stocks finished higher.
The Dow Jones Industrial Average dropped 1.69% to 41.583.90. The S&P 500 declined 1.97% at 5,580.94 while the Nasdaq Composite dropped 2.7% to 17322.99.
The STOXX 600 Index in Europe finished the week at 1.38% lower than it started, due to a drop of nearly 1% by the auto and parts sector.
MSCI's global index of stocks fell by 1.58%, to 829.89. It's on track to finish the week down by 1.44%.
Michael Metcalfe of State Street, the head of global macro-strategy, stated that U.S. auto tariffs were more aggressive than anticipated, particularly since no adjustments had been made for U.S. neighboring countries Mexico and Canada.
Metcalfe stated, "I don't know if the hawkishness in the auto tariffs will translate into the broader tariffs we are going get next week." "And this is keeping the risk appetite on the backfoot."
The gold price has reached a new high of $3,086.70 due to the fear of trade wars.
Last week, it was up by 0.86% at $3,082.25 per ounce. It is up over 17% for the quarter, its best performance since 1986 and its 18th highest record this year. U.S. Gold Futures closed 0.8% higher, at $3114.30.
Wasif Latif is the chief investment officer of Sarmaya Partners, a New Jersey-based firm. He said that gold prices are being boosted by inflation, geopolitical tensions and fiscal risks.
"We still see inflation as stubborn, sticky and won't disappear. Geopolitical risk is still high and the geopolitical climate remains risky. "You can see fiscal risks on the U.S. Budget side, but also in broader Western sovereign bonds. It's challenging as the budget continues to run a budget deficit and interest rates remain stubbornly high," Latif stated.
Investors lowered the yields on U.S. Treasury bonds as they assessed the negative impact that Trump's tariffs will have on the economy. According to LSEG, traders in interest-rate futures bet on a total reduction of 66 basis points this year in interest rates.
The yield on the benchmark U.S. 10 year notes dropped 12 basis points to 4,249%.
Traders see 80% probability of a 25 basis-point ECB interest rate cut in April, up from 50% a week earlier. German Bund yields fell by 0.2 basis points, to 2.731%, from around 50% a week ago.
After the U.S. inflation figures were hotter than expected, the dollar fell against the major currencies including the Japanese yen, euro and the British pound.
The greenback's troubles have benefited the euro. This week, it is up by 0.21% against the greenback.
The dollar fell 0.87% against the Japanese yen to 149.73, and the euro rose by 0.29% to $1.0832. The dollar fell 0.06% against the Swiss Franc to 0.881. The Canadian dollar fell 0.07% against the dollar to C$1.43 each.
Oil prices in commodities were flat, as traders weighed the tightening crude supply and new U.S. Tariffs on their impact on the global economy.
Brent crude futures dropped 0.5% and settled at $73.63 per barrel. U.S. West Texas Intermediate Crude Futures dropped 0.8% to settle at $69.36 per barrel.
(source: Reuters)