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PPC Greece to invest $6.4 Billion to create green tech and energy hub
The Public Power Corporation of Greece plans to invest 5,75 billion euros ($6.4billion) in Western Macedonia to create a green technology and energy hub for Greece as well as southeastern Europe. The plan includes the construction of a 300 megawatt, 2.3 billion euro data center at Agios Dimitrios. PPC stated that the facility could potentially be scaled up to 1,0MW depending on the level of demand. The company intends to also invest 1.2 billion Euros in developing solar parks on ex-mining sites in Western Macedonia. These solar parks will provide a combined power of 2,130MW. Additional 940 million Euros will be allocated to energy storage projects with a total of 860 MW. PPC stated that Ptolemaida 5 - a lignite fired power plant - would first transition into a natural gas 350 MW unit open cycle by the end 2027. Once the decision is made to invest in the data center, the turbine could be upgraded to a combined-cycle 500 MW gas turbine. PPC plans to invest through Hellenic Hydrogen in Greece's 1st industrial-scale green hydrogen production unit, in the town Amyntaio. PPC stated that the new projects will create up to 20,000 construction jobs and an additional 2,000 once they are operational.
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Stocks and the US dollar fall as Trump tariffs fuel concerns about economic growth
The S&P 500 index fell more than 4% on Thursday morning in New York, while the U.S. Dollar and oil prices were also down as Donald Trump's U.S. tariffs caused investors to flee for safe havens like bonds and yen. The new 10% baseline tariff on imported products, plus the eye-watering tariffs that Trump imposed on dozens countries he claimed had unfair trade barriers, left traders frightened by their severity. Investors are concerned that a full-blown dispute over trade could lead to a global economic slowdown, and even inflation. The latest round of U.S. tariffs has hit a world economy still recovering from the inflation spike after the pandemic and dealing with geopolitical tensions. The euro rose by more than 2% versus the dollar. The dollar fell 2.51% against the Japanese yen to 145.49. Nigel Green is the CEO of deVere Group, a global financial advisory firm. He said: "This is what you do when you claim to supercharge the economic engine of the world." Nasdaq shares were down by more than 5% on the day, and technology stocks were among the biggest drags. Apple's stock fell by 8.5% due to tariffs on China, where it manufactures most of its products. Amazon.com fell 7.8%, Microsoft was down 2% and Nvidia was down 5.1%. As worries have grown, the losses are a continuation of the trillions that were lost by "Magnificent Seven", tech giants. The Dow Jones Industrial Average dropped 1,489.79, or 3.53 %, to 40735.53, while the S&P 500 fell 228.84, or 4.04 %, to 5,442.13, and the Nasdaq Composite declined 915.44, or 5.20 %, to 16,685.64. The MSCI index of global stocks fell by 23.68 points or 2.83% to 812.43. RECIPROCAL LEVY The 27-country EU block in Europe now faces a reciprocal 20% levy. The pan-European STOXX 600 Index was down by 2.59%. Trump's tariffs were particularly harsh on Asia. China received a reciprocal tariff of 34%, Japan was hit by 24%, South Korea with 25%, and Vietnam with 46%. In response, Vietnamese stocks fell 6.7%. The Nikkei 225 index fell 2.8%. Pham Minh Chinh, Vietnam's Premier Pledged to Maintain the country's target for economic growth of at least 8 percent this year despite the U.S. imposition of its heavy tariffs on Southeast Asia's exports. The rush to buy ultra-safe government securities that guarantee a steady income has pushed down U.S. Treasury rates. The yield of the benchmark 10-year U.S. notes dropped 17.8 basis points, to 4,017% from 4,195% at late Wednesday. The yields on government bonds in the Eurozone fell. Germany's 10-year bond, which is the benchmark for the region, dropped 7.5 basis points to 2.65% after reaching 2.625%. This was its lowest level since March 4. If tariffs cause recessions, the central banks of the world will likely lower interest rates. This is good for bonds. Fitch, a credit rating agency, warned that they could be a game-changer for the U.S. economy and global economies. Deutsche Bank said it was a moment "once in a life time" which could reduce U.S. economic growth by between 1%-1.5% this year. Olu Sonola, Fitch's director of U.S. Economic Research, said that many countries would likely be in a state of recession. If this tariff rate is maintained for a long time, you can forget about most forecasts. Fitch downgraded China’s credit rating shortly after, citing steep U.S. Tariffs as the reason. The oil prices fell by more than 6%. U.S. crude was down 7.07% to $66.64 per barrel while Brent, at $70.06 a barrel, was down 6.55% for the day. Gold reached a record-high above $3,160 per ounce but then lost steam as the Japanese yen rose. Spot gold dropped 1.23%, to $3094.14 per ounce.
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Ugandan Museveni arrives at South Sudan amid political crisis
The Ugandan President Yoweri Mueveni arrived on South Sudan's border on Thursday. This was the highest-level mission to the country since the clashes in the region and the arrest of the vice president raised fears that civil war could return. Salva Kiir of South Sudan met Museveni at the airport. His administration accused First Vice-President Riek Makar of igniting rebellion and placed him under house arrest. In public remarks made at Juba Airport, the Ugandan leader did not directly refer to the crisis. His military had been invited to South Sudan to assist in securing the capital last month. This visit comes after mediation missions conducted by the African Union this week and an East African regional organization to de-escalate the crisis. Museveni said he will hold talks with reporters "aimed at strengthening our bilateral relations and increasing cooperation between our nations". Kiir stated that the two leaders will discuss "current political events in the country". The United Nations has warned that the young nation of the world could be at the brink of a full-blown ethnic conflict due to the standoff between Kiir, and Machar. Both men led opposing forces during a civil war from 2013-2018 that resulted in the deaths of hundreds of thousands. Uganda supported Kiir's troops during the civil conflict and sent troops to the Northeast last month, amid fighting between South Sudanese military and an ethnic Nuer milita. Machar's forces, which were mostly Nuer, were allied with White Army militias during the civil conflict. However his party denies that there are still links. Muhoozi Kainerugaba - Museveni's own son - said that he ordered Ugandan forces not to attack the White Army as long as they stopped offensives against Ugandan soldiers. Machar's Party says that the Ugandan intervention violates South Sudan's embargo on arms. Analysts believe Kiir is trying to solidify his position in the face of discontent among his own party and speculation regarding his succession plan. (Writing and editing by George Obulutsa, Hereward Holland and Andrew Heavens; Aaron Ross and Andrew Heavens).
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Pandora's annual U.S. Tariff Impact is $178 Mln
Danish jeweller Pandora estimated on Thursday that the total impact of U.S. Tariffs on its company would be around 1.2 billion Danish Crowns ($178.34 millions) per year. This is before any mitigation actions taken by the company. Pandora's shares fell 12% to a low of 15 months on Thursday after U.S. president Donald Trump raised duties on imports of goods from many countries. This included a 37% duty on Thailand where the company has two factories that produce most of its charms bracelets and other jewelry. Pandora's biggest market, the U.S.A., which accounted for 31% in revenue last year, estimated that tariffs would have an impact of 700 million crowns by 2025. Pandora has said that it will consider price increases and changes to the supply chain in order to mitigate this impact. It expects to be fully able to mitigate 250 million crowns associated with goods sold eventually in Canada and Latin America, but distributed through the U.S. Pandora said it would be closely monitoring developments, including the discussions between the U.S. government and the countries affected by tariffs. Reporting by Louise Breusch Rasmussen and editing by Terje Sollvik and David Evans.
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Lesotho's economy will be destroyed by Trump's tariffs, says economist
An economic analyst in Lesotho said that a reciprocal 50% trade tariff, the largest levy among the long list of U.S. president Donald Trump's target economies, would kill the small Southern African country Trump mocked last month. Lesotho is among the poorest countries in the world with a Gross Domestic Product of just under $2 billion. The United States has a large surplus of trade with Canada, mainly made up by diamonds and textiles including Levi's Jeans. Exports to the United States in 2024 will total $237 million and represent more than 10%. Trump imposed new tariffs against global trading partners on Wednesday, upsetting decades of rules-based commerce and threatening to increase costs for consumers. He said that the "reciprocal tariffs" were a reaction to duties and non-tariff barriers placed on U.S. products. According to the U.S. Administration, Lesotho charges tariffs of 99% on American products. Experts in trade said that the AGOA trade agreement, which was meant to develop African economies through preferential access, had ended. The pain was also compounded after Trump demolished USAID, a government agency that had been a major aid provider to the continent. Thabo Qhesi is an independent economist based in Maseru. He said that the 50% reciprocal tariff imposed by the U.S. will kill the textile and clothing sector in Lesotho. Oxford Economics reported that the textile industry, which employs around 40,000 people, is Lesotho’s largest private employer. It accounts for about 90% of manufacturing employment as well as exports. Then there are the retailers that sell food. Then there are the residential property owners that rent out houses to workers. This means that if factories close, the industry will die and there are multiplier effects," Qhesi explained. "So Lesotho is dead, as they say." Lesotho is a mountainous country of 2 million people surrounded by South Africa. The government had no comment regarding the trade tariffs Thursday. Last month, the foreign minister said that the health sector, which is heavily reliant on aid, had already felt the impact. The country has one of highest HIV/AIDS rates in the entire world. The formula for calculating the U.S. Tariffs used the U.S. Trade Deficit in Goods with each Country as a proxy of alleged unfair practice, and then divided that by the amount imported into the United States. Lesotho, Madagascar and Nicaragua, which import small quantities of U.S. products, were hit with higher tariffs. These countries are much wealthier than Lesotho. According to Oxford Economics, this is also true for Vietnam, Nicaragua, and Cambodia, whose exports to the United States represent more than 25% GDP. Sekhoane Masokela is a corn seller in Maseru who saw Trump's announcement to be a reason for him to look for new markets. "Trump is not the only one who has a country. He is giving us a chance to break ties with him, and find other countries." Masokela stated that it was clear that Trump no longer wanted to work with the country. (additional reporting from Sisipho Scweyiya in Johannesburg, writing by Silvia Aloisi and editing by Hugh Lawson).
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U.S. cryptos fall as Trump's tariffs shock markets
U.S. crypto-stocks declined on Thursday, after President Donald Trump’s latest round sweeping tariffs rattled investors’ confidence due to increasing global trade tensions. This sparked a selloff in riskier investments. Coinbase Global, a crypto exchange, fell by about 7.7%. Major bitcoin holder Strategy also dropped by 5.6%. MARA Holdings fell about 8.3%. Riot Platforms dropped 8.7%. Bitfarms lost 5%. The wide losses show the impact of tariffs on a variety of asset classes. Bitcoin, the largest cryptocurrency, fell 3.9% while ether plunged 5.2%. Despite the fact that the Trump administration has indicated a willingness for crypto to be embraced and a lighter regulatory approach, the broader economic instabilities tied to this sector could still have an impact on companies. Marcin Kazmierczak is the chief operating officer of blockchain company RedStone. He said that these declines show a correlation between digital assets, and macroeconomic policy changes. He said that "but protectionist policies which could weaken the dollar hegemony, could accelerate interest in alternative decentralized solutions over the medium to long term." Analysts have said that the changes are less drastic than in other industries. The price action underscores crypto's borderless and hyper-democratic nature, which allows investors to hedge against macroeconomic uncertainty. David Hernandez, crypto specialist at 21Shares, said: Marco Iachini is senior vice president for research at Vanda Research. at Vanda Research. However,?? He said that the amount of water could decrease as the situation becomes more unstable. (Reporting and editing by Arun K. Koyyur in Bengaluru)
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The EU Parliament has voted to freeze sustainability regulations
The European Union gave itself more time on Thursday to negotiate changes that would exempt smaller companies from the sustainability reporting requirements, which European industry claims put them at a disadvantage. In February, the European Commission proposed legal changes that it called "Simplification Omnibus", which would exempt thousands smaller European companies from EU sustainability reporting requirements. The EU responded to the complaints of industry in Europe that it could not compete with its rivals from China and the United States where President Trump has rolled back regulations and imposed tariffs on imported goods. Negotiations between the European Parliament, member states and the proposal can take up to a year. To avoid laws already agreed upon being implemented before the negotiations are concluded, the European Parliament voted Thursday to delay the reporting rules in place for most companies by two years. Firms with less than 500 employees, and those larger companies that are not considered "public interest entities", will not be required to report their sustainability impact until 2027. Reports must then be submitted in 2028. The reporting requirements for most larger firms are due this year. On Thursday, the Parliament agreed to postpone by an additional year the EU supply chain law. This policy will therefore not come into effect until 2028. The EU countries have already approved the delays but will need to give their formal approval within the next few weeks. This final vote is just a formality and is expected to be passed. Negotiations will begin then on the larger proposed changes to laws. The changes include excluding 80% of companies that were initially subject to the green reporting regulations by only applying the rules to companies with over 1,000 employees. The EU wants to amend its due diligence laws so that companies must assess their supply chain for environmental and human right problems every five years instead of every year. While the industry has backed the move to simplify, some investors, lawmakers on the left and activists have criticised the initiative. They said that the first round of omnibus proposals will undermine corporate accountability, and such rapid changes to laws recently agreed create an unstable environment. (Reporting and editing by Barbara Lewis; reporting by Kate Abnett)
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Wall Street to plummet as Trump tariffs decimate dollar
The dollar, oil and world stocks all fell on Thursday after President Donald Trump’s new U.S. tariffs raised fears of a global economic recession. This led investors to look for safe haven assets such as bonds and the Japanese yen. The new 10% baseline tariff on imported products, plus the eye-watering tariffs that Trump imposed on dozens countries he claimed had unfair trade barriers, left traders frightened by their severity. S&P 500 futures and Nasdaq's futures both fell 3.4% and 3.9% respectively ahead of what is expected to be an unsettling start in the United States. Dollar's 2% drop was heading for the worst daily loss since November 2022, and the toughest start of any year since 1995. Brussels and other capitals expressed outrage over the new reciprocal 20% levy imposed on the EU 27-country bloc. The bourses in Europe fluctuated between 1.3% and 2.6% declines. Tokyo's worst week since nearly two years was in Asia, which saw some of the most severe tariffs. Tokyo fell 2.7%. Vietnam was hit even harder. JPMorgan analysts said that the tariffs are "significantly higher" than what the worst-case scenario predicted. Fitch, a credit rating agency, warned that they could be a game-changer for the U.S. economy and global economies. Deutsche Bank said it was a moment "once in a life time" which could reduce U.S. economic growth by between 1%-1.5% this year. Olu Sonola, Fitch's director of U.S. Economic Research, said that many countries would likely be in a state of recession. If this tariff rate is maintained for a long time, you can forget about most forecasts. Fitch lowered China's credit ratings shortly after, citing steep U.S. import tariffs. The rush for ultra-safe government securities that guarantee income has driven U.S. Treasury rates down to 4%. Germany's 10-year yield - the European benchmark borrowing rate – fell by 8.5 basis points, reaching 2.64%. The new import taxes will be the highest in a century in the largest economy in the world. In the event that they trigger recessions, it is likely that central banks will cut interest rates around the globe, benefiting bonds. Wall Street braced itself for a brutal beating on Thursday. Apple's stock dropped 6.5% due to the tariffs imposed on China, the country where it does most of its manufacturing. Amazon.com fell over 5%. Microsoft dropped 1.8%. And AI poster child Nvidia dropped 3.5%. This comes after the worries about tech giants have risen to the point where trillions of dollars have been wiped from their books this year. Nigel Green is the CEO of deVere Group, a global financial advisory firm. He said: "This is what you do when you claim to supercharge the economic engine of the world." CHINA FOCUS Trump's tariffs were particularly harsh on Asia. China received a reciprocal tariff of 34%, Japan 24%, South Korea 25 % and Vietnam 46%. In response, Vietnamese stocks fell 6.7% and Nike, Adidas, and Puma who all rely heavily on Vietnamese and other Asian producers were smashed by as much as 10 %. Investors sold exposure to global growth as the risk-sensitive Australian Dollar also fell. Brent, which is a proxy of economic activity, fell as much as 4%, pushing it back below $72 per barrel. It's on track to have its worst day this year. The gold price reached a record-high of $3,160 per ounce but then slowed down. Meanwhile, the Japanese yen rose more than 1.5 percent to 147.01 dollars as traders sought safety outside of the U.S. Dollar. The Swiss Franc, another safe haven currency, reached its highest level in four month as the euro soared 2% to $1.10.00 Ursula von der Leyen, EU chief, said that the consequences would be disastrous for millions of people in the world if the talks with Washington fail. She added that the 27-member EU was prepared to strike back if the talks failed. "Uncertainty spirals and will trigger the rise of more protectionism." China's currency remained relatively stable, with the yuan dropping only 0.4% in spite of tariffs on Chinese exports exceeding 50% and Vietnam being hit as a result. The Chinese economy is large and there's a hope that Beijing will support Hong Kong and Shanghai stocks. Losses in Hong Kong were limited to 1.5%, and Shanghai losses to 0.5%. George Saravelos, a Deutsche Bank strategist, says that the key focus in the coming days will be whether the dollar continues its decline and how Europe and China may respond. He warned that "given the dramatic nature" of the moves the dollar was at risk of a wider confidence crisis.
Trump administration increases beer can imports to 25% US Aluminum tariffs
On Wednesday, the Trump administration announced that it would impose a 25% duty on all beer imports. The beverage and empty aluminum aluminum cans will be added to a list containing derivative products which are subject to aluminum tariffs. In a Federal Register announcement, the Commerce Department stated that duties on beer will be collected at 12:01 am EDT Friday, April 4, starting with empty aluminum cans. The notice reversing Trump's previous aluminum tariff changes only lists the tariff code for malted beer. The notice does not mention a subordinate tariff code for beer imported in glass bottles.
The Commerce Department didn't immediately answer any questions about the notice. The announcement comes just hours before Trump announces sweeping tariffs against U.S. trading partner countries, which will escalate a global war of trade and cause price increases.
According to U.S. Census Bureau figures, the move would have a significant impact on beer imports which are expected to exceed $7.5 billion by 2024. Mexico dominated U.S. imports of beer last year with $6.3 billion, followed by the Netherlands, $683 million, Ireland, $192 million, and Canada, $73 million. (Reporting and editing by Anna Driver, Susand Heavey, David Lawder)
(source: Reuters)