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Sources: US trying to negotiate deal for reopening Alphamin tin mining in war-hit Congo
Four sources familiar with the negotiations said that the United States was trying to broker a deal which would guarantee a reopening of an important tin mine located in eastern Congo. Massad Boulos' recent trip to Kinshasa as the senior Africa advisor for U.S. president Donald Trump included a discussion on the fate of Alphamin’s Bisie Mine, according to the sources, even though Washington’s involvement dates back several weeks. Washington and Kinshasa are also in talks about a broader deal on critical minerals partnerships, after Congo pitched a minerals-for-security deal to the Trump administration. Bisie produced around 17,300 tons of Tin last year. This represents 6% of the global supply. Alphamin announced that it would temporarily stop operations at Bisie last month as M23 rebels backed by Rwanda advanced in the area, taking the strategic Walikale town and openly threatening to destroy the mine. M23 retreated from Walikale in the last week. The group described the move as an act of goodwill ahead of peace talks planned with the government, which will be mediated by Qatar. Sources told M23 that Washington was directly involved in Congo and Rwanda, which is why they made this decision. Washington, they said, demanded that M23 withdraw 150 kilometers from the mine. They also asked Congo's army to refrain from attacking the rebels. According to the United Nations and Western governments, Rwanda provided weapons and troops to ethnic Tutsi led M23. Rwanda denies backing M23, and claims its military acted in defense of Congo's army as well as a militia formed by the perpetrators who committed the 1994 genocide. Sources said Boulos would raise the matter with Rwandan president Paul Kagame on Tuesday during his visit to Kigali. Boulos told journalists in Kigali Washington hopes Alphamin "makes some announcements shortly regarding the resumption of their operations". The company has not responded to our request for comment. Boulos stated that "we definitely encourage them (to resume their operations) and we appreciate the ongoing dialogue." (Writing and editing by Ros Russell, with additional reporting by Philbert Corey-Boulet in Kigali)
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Erdogan: Turkey does not expect negative trade and export situation following tariffs
The President of Turkey, Tayyip Erdoan, said that the tariffs imposed by Donald Trump on Wednesday will not have a negative impact on its trade, production, and exports. Turkey is one of the few countries that have escaped the "reciprocal tariff" of the United States of 10%. It is seen as a potential winner amongst a small group of nations. Erdogan told his ruling AK Party lawmakers that Turkey's economic program had made the country resilient to external shocks, and that they expected a stronger economic growth on a medium-to-long term compared with peer countries. Erdogan stated that there was a lot of uncertainty in the world but that there was a solid economic program which illuminated Turkey's way. We believe that this will be a period we can overcome more easily than other countries, since we are a low-tariff country. He said that Turkey’s disinflationary process is continuing, and that the spending and saving measures that the government implemented last year will be continued this year. The Turkish economy, which suffered from the earlier U.S. duties on iron, steel, and aluminum, is now set to gain as other traders around the world face even higher tariffs. (Reporting and editing by Huseyin Haatsever, Ezgi Erkoyun)
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Official: Madagascar faces the loss of 60,000 textile jobs due to U.S. Tariffs
An industry official said that Madagascar's textile sector could lose around 60,000 jobs due to President Donald Trump’s 47% tariff against the country. The latest U.S. Tariffs were calculated using a formula that meant low-income countries such as Madagascar, which imported small quantities of U.S. products, faced the highest tax rates. According to an ILO report from 2023, the textile and clothing industry in Madagascar employs approximately 180,000 people. It accounts for about one-fifth the gross domestic product of the country. In 2024, the country of 31,000,000 people will export $733 million worth of goods to the U.S. Most of this is under the African Growth and Opportunity Act. (AGOA) which grants duty-free access to U.S. markets for many African goods. In a late-night statement, Rindra Andriamahefa (executive director of a lobby group for the industry) said that the decision to increase tariffs to 47 percent would affect around 60,000 jobs, both permanent and temporary. Beatrice Chan Ching Yiu is the president of the lobbying group Groupement des Entreprises Franches et Partenaires. She said that investors will turn to countries exporting goods, which only face a 10% minimum tariff imposed by Trump's administration. "The pandemic is one thing. Ching Yiu stated that the situation we face now is quite different. Unfortunately, temporary layoffs and dismissals are likely to be necessary. Madagascar has started consulting with other African countries that are adversely affected by tariffs in order to coordinate a position. The Foreign Affairs Ministry said that a constructive dialogue was underway with U.S. officials, which included technical discussions to understand the reasoning behind the decision. (Reporting and editing by Aaron Ross, Ed Osmond, and Hereward Holland)
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Sinopec and Saudi Aramco to expand Yasref Petrochemical Complex
Saudi Aramco announced on Wednesday that it had signed a contract with Sinopec of China to expand a petrochemicals facility operated by the Yasref joint-venture on the western coast of the Kingdom. Aramco has partnered with Sinopec in a number of ventures, as Saudi Arabia seeks to expand its refinery business. This can help offset the drop in crude oil price. The escalating US-China trade war following President Donald Trump’s sweeping tariffs raised fears of a global recession on the markets and sent crude oil prices down to their lowest level in four years. Aramco stated that the partners were aiming to build a steam cracker for mixed feed with a total capacity of 1.8 mtpa and an aromatics facility with a 1.5 mtpa. In a statement from Aramco, Sinopec President Zhao Dong stated that "the Yasref project represents an important milestone in our bilateral relationship and ushers in a new stage of deeper and further-reaching cooperation." The announcement coincides the 10th anniversary of Yanbu Aramco Sinopec Refining Company (Yasref), which is owned by Aramco 62.5% and Sinopec 37.5%. According to its website, it already processes 400,000 barrels of heavy Arabian crude oil per day to produce transportation products and other refined goods. Aramco's long-term strategy for liquids-to chemicals is to convert up to 4,000,000 barrels of crude oil per day into petrochemicals before 2030. In its annual report, published last month it stated that 53% of the crude oil produced upstream would be used downstream in 2024. This is up from 47% in the previous year. Sinopec announced in November that it had begun construction of a refinery in the southeast China province of Fujian, which Aramco has also joined. Aramco has a stake in Fujian Refining & Petrochemical Company which is owned by a Sinopec joint-venture. Aramco's chemicals subsidiary SABIC also has a Sinopec operational joint venture. (Reporting and editing by Barbara Lewis; Yousef Saba)
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China trade war adds to copper losses as it falls to an eight-month low
Copper prices in China reached an eight-month low on Wednesday as bargain hunters stopped buying after the U.S. imposed higher tariffs on China, a major metals consumer. By 0940 GMT, the benchmark three-month price of copper on London Metal Exchange (LME), was down by 0.1% at $8,650.50 a metric ton. LME copper prices have fallen by 20% after reaching their highest level in over nine months at $10,164.50 on March 26, 2016. Dan Smith, the head of research for Amalgamated Metal Trading, said: "There has been some dip-buying from China. But I think that the problem is the increasing prospect of an American recession." The "reciprocal tariffs" imposed by Donald Trump on dozens countries went into effect on Wednesday. These included massive 104% duties for Chinese goods. This deepened his global trade conflict and sparked a more widespread sale on financial markets. Smith stated, "I believe everyone was hoping Trump would back off on his aggressive tariffs. But I think this is going to take some time to work out." It's like a knife falling at the moment. I wouldn't try to buy dips by myself. The Shanghai Futures Exchange's (SHFE) most traded copper contract dropped by 1.8%, to 72,130 Yuan ($9,814) a ton. This is the lowest it has been since August 2024. The lower prices have attracted industrial users in China who require physical copper. A base metals trader stated that "Due Trump's unpredictable duties, copper prices may decrease further. However, the current price of below 75,000 yuan encourages some fabricators" to purchase. Yangshan Copper Premium Since late February, the price of copper in China has increased by more than two-thirds to $87 per ton. This is its highest level since December 2023. Other metals include LME aluminium, which fell by 1.2%, to $2320.50 per ton. Nickel also dropped 0.3%, to $14145. Zinc lost 0.3%, to $2554.50. Lead was down 1.0%, to $1850.50. Tin was down 2.2%, to $31,890.
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Volkswagen EV sales increase in Europe but plunge in China
Volkswagen Group sales of battery electric cars in Europe more than doubled during the first quarter, but dropped by more than one-third in China. This is a sign that the automaker has experienced divergent fortunes on the electric car market. China's electric vehicle market is fiercely competitive. New EV-only entrants are stealing market share away from foreign automakers. The total sales in China fell by 7.1% despite the fact that the carmaker maintained a 22% share of the market for combustion engines. Mercedes-Benz Porsche Also reported was a drop in sales from China. Volkswagen expects sales of its battery electric models to gradually increase in the coming months, as it launches new models such as ID.3 and ID.4X. The Shanghai Auto Show will be held in April. At this show, the automaker will debut the first model in series production of the new Audi brand, which is set to launch in 2019. Three VW models are also scheduled for release in 2026. Orders for Volkswagen vehicles in Europe (both electric and combustion engines) rose by 29% compared to the previous year. The European Automobile Manufacturers' Association reported that battery-electric vehicle sales in Europe have increased substantially this year despite a decline in total sales. This is due to the new EU emission targets and new model launches, which have driven demand after years with a slow growth. The sales in the U.S. increased by 6.2%. This could be a sign that customers are making purchases in advance of the 25% tariffs being implemented on imported cars. The VW brand is highly vulnerable to a brewing trade conflict because two thirds of its sales come from cars manufactured in Mexico. All of its Porsche, Audi and Lamborghini models are imported from Europe. Reporting by Victoria Waldersee and Amir Orusov, Editing by Jamie Freed Matthias Williams, Louise Heavens
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Former President Kabila has said he will return home to Congo
He said late Tuesday that the former Congolese President Joseph Kabila would return to central Africa to help solve the crisis in war-ravaged eastern Congo, where Rwandan-backed M23 M23 rebels had seized large swathes. Since January, the M23 rebels have launched a lightning-fast offensive in the mineral-rich eastern part of Democratic Republic of Congo. This has resulted in thousands of deaths and hundreds of thousands of people being forced to flee their homes. It also stoked fears of an escalating regional conflict. Sources from the Congolese government, M23 and other sources confirmed this week that the peace talks between Congo & Rwanda scheduled for Doha on April 9 have been delayed. No new date has been set for their resumption. Rwanda denies supporting the rebels. "I resolved to return to my country without delay in order to contribute to the hunt for a resolution," said Kabila. He was in power from 2001 until 2019 and left in 2023. Since then, he has lived in South Africa, and spent time in other African nations. It would be a contentious issue in Congo if he returned. He is the son of Laurent Kabila. After his father was assassinated, he rose to power and refused to step down in 2016 when his term expired. This led to violent protests. Kabila's enemies accused him of delaying the elections to allow himself to run for a third mandate. In 2018, he agreed to step down after an election in December. After the disputed Congolese elections of 2018, President Felix Tshisekedi formed a power-sharing agreement with Kabila. Tshisekedi accused his predecessor later of blocking reforms. Tshisekedi who assumed office in 2019 has accused Kabila recently of supporting the rebels. As M23 marched into eastern Congo's second largest city, Bukavu in February, Tshisekedi accused Kabila publicly of sponsoring insurgency. Kabila has reached out to civil society and opposition politicians to discuss the future of the country, amid criticisms about Tshisekedi’s response to M23’s campaign. A military prosecutor called three Kabila party officials in March to question them about comments made by one of them a month before. Their lawyer stated that no charges had been brought against them. Kabila stated that he had decided to start with the east, because it is the most dangerous. He outlined his plans in a letter, which said the decision was made after consultations with both national and international power brokers and other players in the conflict. (Reporting and Additional Reporting by Sonia Rolley, Writing by Portia Crowe; Editing Jessica Donati).
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Seven & i's quarterly profits plummet as it tries to fend of Couche-Tard's bid
Seven & i Holdings, a Japanese company, reported on Wednesday that its fourth-quarter profits dropped by 15%. This could make it more difficult for the company to fend of a hostile takeover bid from Alimentation Couche-Tard in Canada. The earnings of the 7-Eleven convenience store operator came in slightly better than expected, but it was the fourth consecutive quarter that profits declined. Inflation has increased the price of materials in Japan and utility costs. The country also lags behind its competitors in terms of attracting customers who are price-conscious. Executives noted that the uncertainty surrounding President Donald Trump's proposed tariffs had led to a decline in consumer confidence. Seven & i reported an operating profit of 105.6 bn yen (726 mn dollars) during the period December-February, compared to a LSEG consensus of 94.5 bn yen. The revenue increased by 0.4%. Seven & i, in an attempt to thwart Couche-Tard’s $47 billion offer, has argued that the antitrust laws of the U.S. could thwart any deal. Its own initiatives to revamp its business will be enough to increase its corporate value. Seven & i has started selling non-core business and appointed a new chief executive after a failed management buyout in February. At a press conference, Stephen Dacus, incoming CEO of the company and its first foreign leader, admitted that "truthfully we've been conservative in the past." This has caused us to move a little slower than we would have liked and miss opportunities. He added, "This is something that I intend to fix." Operating profit for the entire year fell 21%, to 421 billion Japanese yen. This was its first drop in four years. The company forecasts a slight rise to 424 billion Japanese yen in the current fiscal year. In March, the company announced a buyback of 2 trillion yen in shares and proposed to list its North American convenience stores subsidiary by 2026's second half. Seven & i is repurchasing and canceling 600 billion yen worth of shares in the first tranche. Dacus stated on Wednesday that the timing for the IPO could be altered if the current market conditions are not conducive. Seven & i, the operator of Circle K stores and Seven & i announced last month that they are working together to find purchasers for 2,000 of their convenience store in the U.S. This step is seen as essential for their potential merger's approval by the U.S. Federal Trade Commission. According to sources, private equity firms are the main buyers. The shares of Seven & i closed on Wednesday at 1,848.5 yen before the results. This is still far below Couche-Tard’s offer of 2,700 yen. Investors are therefore sceptical about the bid's success.
Nikkei reports that Toyota will increase the number of EV models from 15 to 1 million and target production by 2027.
Toyota plans to develop 15 electric car models on its own before 2027, and will aim to produce 1 million vehicles a year at that time, according the Nikkei paper on Sunday.
Toyota refused to comment on the matter, stating that the information had not been announced by the company.
Nikkei reported that Toyota produces only five EVs, all of which are developed by itself, and are manufactured in Japan and China. The Nikkei said that expanding production to the United States and Thailand can reduce delivery times and help mitigate tariff and exchange rate risks.
Business daily Nikkei reported that among the 15 EV models, some are from Lexus, its luxury brand. Nikkei said that Toyota expects to make about 800,000 vehicles in 2026. This is a drop of nearly 50% compared to its original plan.
Toyota previously stated that it planned to sell 1.5 millions EVs annually by 2026, and 3.5 Million by 2030. The numbers were referred to as benchmarks rather than targets.
It sold nearly 140,000 EVs worldwide in 2024. This is an increase of about a third compared to the previous year. These EVs accounted for less that 2% of the company's total global sales, which exceeded 10 million.
(source: Reuters)