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Port Sudan shook by explosions, army claims to have intercepted drones
Sudan's army claimed that its anti-aircraft system intercepted drones on Wednesday, which were targeting the largest naval base of the country in Port Sudan, the country's wartime capital. There were explosions heard in the city. It was not immediately known if they were near Flamingo's base. Port Sudan was the target of days of attacks, including drone strikes reported by Sudan's paramilitary Rapid Support Forces. These assaults have destroyed the country's largest fuel depots as well as its main humanitarian aid gateway. Port Sudan has enjoyed relative peace since the outbreak of the civil war in April 2023 between the RSF and the army. After the RSF took over Khartoum, the city on the Red Sea Coast became the base of the army-aligned Government. The drone strikes in Port Sudan opened up a new front. They targeted the army's stronghold in eastern Sudan. This was after the RSF had been forced to retreat westwards in much of central Sudan in March, including Khartoum. (Written by Enas Alashray; edited by Christian Schmollinger & Andrew Heavens).
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BMW expects auto tariffs to drop from July, but sticks to its 2025 vision
BMW, the premium German carmaker, confirmed Wednesday its outlook for 2025. It said it expects some of the current tariffs on vehicle imports will decline starting in July. This is one of the most optimistic assessments of the prospects of the industry. The majority of BMW's competitors, including Mercedes-Benz and Ford, have pulled their forecasts for 2025, claiming that it is too difficult to provide a proper guide in light of the extensive import tariffs in America, the second-largest auto market in the world. BMW said that its March 2025 forecast, which included all tariffs announced to date, was still valid. It predicted earnings before taxes on par with last year, and an operating margin of 5-7% at its automotive division. BMW stated that it was only able to estimate the impact of tariffs on the current year, based on certain assumptions. However, the company expected "some tariff increases will be temporary with reductions starting in July 2025". The company's shares were expected to open 2% higher. This was also supported by a better-than-expected EBIT for the first quarter of 2,02 billion euros ($2.3billion) at its automotive unit. It came in over the 1,85 billion LSEG survey of banks and brokers. The unit's operating profit margin was 6.9%, down slightly from 8.8% during the same period last year but above the 6.3% LSEG survey forecast. BMW warned that the actual performance of its business could be different if tariffs were to increase or remained in place longer than expected. It also cautioned against the possibility of supply bottlenecks, particularly for certain parts and raw materials. Reporting by Christoph Steitz; editing by Kirstiknolle and Tomaszjanowski.
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Stocks rise in a tepid response to US-China talks
U.S. stocks futures jumped and the dollar rose Wednesday, on news of a meeting between top U.S.-China trade officials. However, Asian markets were cautious on prospects for a tariff deal ahead of a Federal Reserve rate decision. The U.S. Treasury secretary Scott Bessent stated that the weekend meeting in Switzerland would be about deescalation. China, on the other hand, sounded more cautious and cited the proverb "actions speak louder than words" to explain its caution. S&P 500 futures and Hong Kong's Hang Seng both rose by about 0.6%, after both reversing earlier gains during the Asia session. Japan's Nikkei remained flat while blue chips in China rose by 0.4%. The hot rally in Asian currencies has cooled, with Korea's won falling sharply and China's yuan being weighed down by a rate reduction. In a recent note, analysts at Commonwealth Bank of Australia said that the dollar was supported by the easing of trade tensions. "Today's meeting of the Federal Reserve could also be a source of support for dollar... if Powell adopts a hawkish tonality in order to demonstrate his independence from any political influence." After relatively strong U.S. labor data last week, the Federal Reserve will meet to set interest rate later that day. Expectations for cuts have been dialled back. The markets indicate that there is almost no chance for a move to be made on Wednesday, and that only 33% of the chances of a reduction in June have decreased from 64% one month ago. Last month, the dollar suffered a blow when U.S. president Donald Trump threatened to fire Fed chair Jerome Powell. He has since backtracked. India's rupee dropped a bit and Pakistani stocks fell after the most intense fighting in decades broke out between the two nuclear-armed neighbors. China announced a rate reduction, increased cash in the banking system, and opened a channel to allow insurance money into the stock market. However, the reaction was muted, as investors were waiting for fiscal stimuli and all eyes were on the U.S.-China negotiations. Stocks have been teetering higher for weeks in anticipation of a rapprochement, or a breakthrough, to reduce the tariffs. BMW confirmed on Wednesday its outlook for 2025, stating that it expects some of the global tariffs imposed on imports to be temporary. Gold is more than $100 per ounce lower than the record high set last month. Brent crude futures have been steady at $62.74 per barrel, despite a 16% drop since the announcement of tariffs. The euro was supported above $1.13, with German conservative leader Friedrich Merz being elected chancellor after his alliance with Social Democrats suffered a shock defeat in the initial round.
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London metals drop amid caution before US-China trade talks
Metal prices dropped in London on Wednesday, as investors were more cautious about the outcome of a meeting between U.S. trade officials and Chinese counterparts. This was due to investors' concerns over the economic stimulus measures taken by Beijing. As of 0342 GMT, the benchmark copper price on London Metal Exchange (LME), was down by 0.7% at $9,469.5 per metric ton. The plan was to The meeting between U.S. officials and Chinese officials in Switzerland this weekend comes after months of increasing tensions, which have seen the duties on trade between two of the largest economies of the world soar above 100%. While the two sides will likely discuss lowering tariffs on both specific products and broader tariffs, traders are waiting to see what happens. The outcome of the trade talks is still unclear. "While we can't assume a positive outcome, we remain optimistic for meaningful progress in our relationship," said a trader. On Tuesday, U.S. president Donald Trump announced that he will be reviewing potential trade agreements over the next two week to decide which to accept. China's central banks said that to help the economy in the midst of the trade war it will, for the very first time, in 2025, reduce the reserve ratio requirement for banks by 50%, releasing about 1 trillion yuan worth of liquidity. Other London metals saw aluminium drop 0.9%, to $2.405 per ton. Zinc fell 0.4%, to $2.405, while lead dropped 0.2%, to $1.919; tin declined 0.9%, to $31,700, and nickel fell 0.1%, to $15,680. The Shanghai Futures Exchange's (SHFE) most-traded contract for copper rose by 0.1%, to 77.770 yuan (10,761.63 dollars per ton), with the support of rapidly declining stocks monitored by the SHFE. SHFE aluminium fell 1.8% to 19.505 yuan per ton. Zinc was down 0.4% at 22,330 yuan. Lead was unchanged at 16,695 Yuan. Nickel was up 0.1%, to 124.690 Yuan. Tin was up 0.1%, to 260.560 Yuan. $1 = 7.2266 Chinese Yuan (Reporting and editing by Mrigank dhaniwala, Savio D’Souza and Violet Li)
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Oil prices rise as the market looks at US-China trade negotiations and lower US output
Investors focused on U.S. China trade talks and signs that U.S. oil production is declining. Brent crude futures rose 44 cents a bar, or 0.7% to $62,59 a bar by 0400 GMT. U.S. West Texas Intermediate crude gained 50 cents or 0.9% at $59.59 a gallon. The benchmarks fell to a 4-year low after OPEC+ decided to increase output. This fueled fears of an oversupply, at a time that U.S. Tariffs are increasing concerns about demand. Brent crude is trading higher on news that the U.S. will begin trade talks with China this weekend, extending a rally in oil, said commodities strategists from ING. "While negotiations could help improve sentiment on the oil market we will need to see substantial progress in lowering tariffs to increase the outlook for demand," ING said. In recent weeks, the lower oil price has prompted several U.S. companies to reduce their rigs. Analysts believe this will support prices by reducing production over time. Daniel Hynes, senior commodity strategist at ANZ Bank, believes that the latest announcements suggest a decline in output over the next few months. Last month, we warned that the falling oil prices and decreasing drilling activity would increase the risk of U.S. output dropping. Market sources cited American Petroleum Institute data on Tuesday to report that crude stocks dropped by 4.5 millions barrels during the week ending May 2. The U.S. Government will release data about stockpiles at 10:30 am ET. ET (1430 GMT). The average expectation of the analysts polled is that U.S. crude stock will decline by 800,000 barrels for last week. The signs that demand was improving also helped to support prices. China's consumers increased their spending on May Day and when the market returned from the holiday. Analysts expect companies in Europe to report a 0.4% increase in their first-quarter earnings. This is an improvement from the 1.7% decline analysts expected just a week earlier. It is expected that the Federal Reserve will leave interest rates in the United States unchanged on Wednesday, as tariffs continue to roil economic prospects. Reporting by Nicole Jao from New York, and Jeslyn Lerh from Singapore; Editing and rewriting by Stephen Coates and Kate Mayberry
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Toyota's earnings are cushioned by the demand for hybrids but a US tariff threat looms
Toyota's profits are expected to remain steady when it reports its annual earnings on the 15th of this month. However, investors will be alert for any signs that U.S. Tariffs could have an impact. Investors will pay close attention to the impact of President Donald Trump's Tariffs on Toyota's future profits. The levies will likely deal a severe blow to automakers doing business in the U.S. What Toyota says about Toyota Industries will also be of interest, after the automaker announced last month that they were considering a possible buyout. Seiji Sugiura is a senior analyst with Tokai Tokyo Intelligence Laboratory. "The focus will be on the guidance for fiscal year ending in March 2026," he said. "I do not know whether Trump's tariffs will be considered or not." According to the average seven analysts surveyed, the Japanese automaker will deliver a 2% increase year-on-year in operating profit, which would be equivalent to $7.86 billion. This would be the first rise in three quarters. The company's sales data has already shown that the momentum was maintained at the beginning of the year. Toyota's sales worldwide rose by 5% between January and March compared to a year ago, thanks to strong demand in the United States and Japan, its two biggest markets. Toyota's operating profits for fiscal 2024 are expected to be lower than last year's record. The automaker increased its forecast of operating profit for the fiscal year that just ended in February to 4.7 trillion Japanese yen. This would represent a 12% drop year-over-year. Toyota's strong demand for hybrids like the Prius, Camry and other gasoline-electric vehicles has validated its bet on this technology. However, it also poses a challenge to the automaker as suppliers are struggling to keep up. POTENTIAL TARIFF HIT Tokai Tokyo’s Sugiura said that the company's operating profit for fiscal 2025 could be affected by 800 billion yen as a result of the impact of tariffs on Toyota’s U.S. bound exports from Japan. The estimate doesn't factor in any wider impact of Trump's tariffs such as a possible U.S. economy slowdown, or on Toyota exports from Canada and Mexico to the largest economy in the world, where they have production bases and make some of their most popular models. Toyota previously stated that it would continue its normal operations and focus on reducing fixed costs. It did not take more radical measures, such as raising car prices to respond to tariffs. Toyota, according to sources familiar with the situation, is looking at producing its next-generation RAV4 SUV on American soil to protect itself from the potential risk of U.S. exchange rates and tariffs. The demand for this car also appears to be outstripping supply. Toyota shares are down 13% this year compared to the Nikkei index's 8% drop over that time period. Analysts are also waiting for an update from Toyota on its strategy to unwind cross-shareholdings, as regulators and investors have been putting pressure on Japanese companies in recent years to sell stakes they hold in business partners and affiliates. The structure of any deal will determine how Toyota's price is affected by a possible investment into a potential purchase of Toyota Industries. Toyota Industries was a company that has been around for nearly 100 years, from which Toyota Motors was spun-off. James Hong, Macquarie's head of mobility analysis, explained. Toyota Industries owned around 24% of Toyota as of September of last year. Toyota Industries also held more than 5% Denso, a major Toyota supplier, and a Toyota group company. He said that investors would view any additional investment by Toyota in its supplier as a negative, but steps to address cross-shareholdings and dual listing concerns could be seen as positives for the entire market, including Toyota. $1 = 143.7500 Japanese yen (Reporting and editing by Muralikumar Anantharaman).
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Shell and Google Enter PPA to Extend Life of First Dutch Offshore Wind Farm
Shell and Google have signed a power purchase agreement (PPA) for the electricity produced at 108 MW NoordzeeWind project, extending the lifespan of Netherland’s first offshore wind farm.The agreement will extend the lifespan of the NoordzeWind offshore wind farm by at least four years beyond its original decommissioning date.Google purchased 100% of the wind farm's 108 MW capacity, which enabled Shell to pursue permit extensions and invest in crucial upgrades, preventing the premature loss of valuable clean energy.Shell NoordzeeWind is the oldest and first offshore wind farm to undergo a life extension in the Netherlands.“The initiative helps to keep existing carbon-free energy resources on the grid that would otherwise have retired.“To date, we’ve supported over 1 GW of clean energy generation capacity in the Netherlands through PPAs.“This investment in offshore wind, including our largest offshore wind project ever, reflects our broader commitment to a carbon-free future and our hope to inspire similar partnerships giving new life to clean energy assets facing retirement,” Google said.
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Officials say four people were injured in a fire at a coal processing plant in Russia’s Far East.
Early on Wednesday, Russian authorities and officials of the company said that four people had been injured in an early morning fire at a coal-processing plant in Russia's far northeast. Mechel, a Russian mining company, said in a press release that its workers had been evacuated from the coal processing plant at Neryungri, in the Republic of Sakha (also known as Yakutia), after a fire started in a warehouse containing finished goods. Mechel and Yakutugol own the Neryungri Plant. Yakutugol is the largest coal mining firm in the Sakha Republic. According to Russian media reports, the Neryungri coal plant began operations in 1984 and has a capacity of 9 million tons per year. In a video posted on Telegram, Denis Gerasimenko said that more than 50 firefighters and twelve pieces of equipment had been involved in fighting the fire. Gerasimenko stated that the problem lies in the construction of the building, and the presence of a load which is flammable. A number of Russian Telegram channels reported that an explosion had occurred at the plant. We were unable to independently verify reports of an explosive. (Reporting and writing by Lidia Kel in Melbourne, Editing by Christopher Cushing & Kate Mayberry
India imposes temporary tariffs of 12% on certain steel imports
A government notification announced that India had imposed a temporary tariff of 12%, known locally as a "safeguard duty", on certain steel products in order to curb unbridled imports.
India, the second largest producer of crude iron and steel in the world, announced that the tariffs will be effective for 200 days starting Monday.
The Ministry of Finance stated that "the safeguard duty imposed by this notification will be in effect for a period of 200 days (unless earlier revoked or modified) after the publication of the notification."
India's steel tax increase is the first major trade policy decision since U.S. president Donald Trump imposed duties on a number of countries in April.
New Delhi's tariffs primarily target China, the second largest steel exporter to India in 2024/25 behind South Korea.
According to government data, India became a net steel importer for the second year in a row during the fiscal year 2024/25. Shipments reached a record high of 9 million metric tonnes, a figure not seen since the early 1990s.
Steel Authority of India, ArcelorMittal Nippon Steel India, and JSW Steel, New Delhi's largest steelmaking body, have raised concerns about imports. Reporting by Neha Misra and Surbhi Arora; Editing and Toby Chopra and Alison Williams
(source: Reuters)