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Swiss central bank faces protests over its investments
The Swiss National Bank AGM was protested by environmentalists on Friday. They urged the central bank not to invest in companies that they claim contribute to the destruction of the environment, such as the Amazon rainforest or Brazil's Cerrado Savannah. The protests in Bern were aimed at the SNB holdings of firms that had been identified by a University College London study as "Environmental Tipping Point" companies - corporations whose actions they claim cause irreversible environmental damage. The campaigners gathered outside the shareholders meeting of SNB with banners saying, "Deforestation Is Not A Swiss Value" and placards with an image mocking up SNB Chairman Martin Schlegel with a speech balloon saying "burn baby Burn." Activists called for stricter exclusion criteria to be applied to the SNB's investment and demanded that the central bank use its influence as an investor to influence the behaviour of companies. They said that the central bank should divest if companies fail to comply with SNB guidelines, which prohibit them from purchasing securities in companies who cause severe environmental damages. Asti Roesle, Climate Alliance Switzerland, said: "If the SNB ignores environmental and climate risks in its monetary decision-making process, it acts shortsightedly and fails to fulfill its duty to protect future generation." She said that the climate change has already visible impacts on Switzerland, such as melting glaciers and destructive storms causing landslides. Roesle said that the SNB, which is expected to address the shareholders at the meeting due to the size of its equity investments, could have a significant impact due to the fact that about 25% its 756 billion Swiss Francs ($914 Billion) in foreign reserve are held in global shares. The SNB has a passive, market-neutral investment strategy. It is not mandated by the Swiss government to influence the development of certain economic sectors. Instead, it focuses primarily on controlling inflation. In its sustainability report, it states that it excludes companies who severely harm the environment or violate human rights. The report also excludes coal mining companies. Critics say this is not enough and they want a similar approach to Norway's sovereign fund, which informs companies of its climate change expectations as well as votes on the subject. Guillaume Durin, from BreakFree, a Swiss climate group, said that the SNB still invests in companies which cause climate damage. Durin stated that "the SNB doesn't respect its own rules." As a passive investor the SNB is complicit in the destruction of ecosystems that are critical to the balance of the planet. $1 = 0.8275 Swiss Francs (Reporting and Editing by William Maclean, William Revill)
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India is considering allowing foreign ownership of nuclear power plants to reach 49%
Three government sources have said that India may allow foreign companies to own up to 49 percent of its nuclear power plants. This is as New Delhi prepares plans to open its most closely guarded industry to achieve its goals of reducing carbon emissions. Since 2023, the government has been considering changing its nuclear foreign investments framework. India is attempting to replace coal-based energy with more environmentally friendly sources of energy. The officials did not know if the investment in this sector would lead to tariff negotiations with the United States. A 2008 civil nuclear agreement between the United States and Canada allowed for many billions of dollar deals with U.S. firms. However, the companies have been discouraged by the possibility of an unlimited liability in the event of an accident. No foreign investment is allowed in India's nucleonic plants. The latest proposals, along with plans to relax nuclear liability laws and to allow domestic private actors to enter the sector, could remove impediments for government goals to expand nuclear energy capacity by 12 to 100 gigawatts in 2047. Sources said that any foreign nuclear investment would require government approval prior to being allowed. India's Finance Ministry, Department of Atomic Energy and Prime Minister's Office did not reply to our questions. The three sources requested anonymity because their proposals are still being considered. The government said that it would likely bring the necessary changes to the federal cabinet in the near future and that they hoped to pass the amendments to both the Atomic Energy Act of 1960 and the Civil Liability for Nuclear Damage Act of 2010. The three sources claimed that amendments to the Atomic Energy Act will allow the government issue licenses to private companies for the construction, ownership and operation of a plant, as well as the mining and manufacturing of atomic fuel. GOVERNMENT MONOPOLY The government controls just 8 GW of nuclear power in India, which is 2% the installed capacity. In order to meet the high demand for energy at night, the country is looking to complement wind and solar energy with atomic power. The atomic department said that foreign companies such as Westinghouse Electric and GE-Hitachi were interested in taking part in nuclear power projects in the country as technology partners, contractors, suppliers and service providers. Indian conglomerates such as Reliance Industries, Tata Power and Adani Power have held talks with the government about investing around $26 billion into the nuclear energy sector. (Reporting and editing by Barbara Lewis; Sarita Chaganti-Singh)
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Dollar and stocks are both on the rise this week as a result of hints about tariff relief
Investors were encouraged by signs that the U.S. was willing to end its trade war with China. The dollar also rose for the first time in over a month. The benchmark STOXX Index in Europe rose 0.3% amid hopes for a easing of trade tensions. It was also boosted by positive earnings reports, from the Finnish forestry company Stora Enso and French jet engine manufacturer Safran. U.S. Futures also climbed as tech giant Alphabet, the parent company of Google, beat profit expectations. It also reaffirmed AI expenditure targets. This pushed its shares up by nearly 5% after-hours and pulled along other peers. The dollar, after a turbulent few weeks of tariff announcements and reversals, and flight from U.S. assets found its footing at around $1.1330 for the euro and 143.4 Japaneseyen. Eli Lee, Chief Investment Strategist at Bank of Singapore said that the peak of tariff threats is likely to be behind us. Both sides have stated that they will not increase rates above current levels. The tit-for-tat tariffs, which began on April 2, when U.S. president Donald Trump announced hefty import duties, had threatened to stall the trade between two of the world's largest economies. They also sparked concerns of a global slowdown. The U.S. changed its tone this week and declared that the current situation is unsustainable. China, meanwhile, may exempt some U.S. imported goods from the 125% tariffs, in what could be the most significant sign of Beijing's concern about the potential economic consequences. UNEASY CALM Hong Kong's Hang Seng index rose 1%, and mainland China’s Shanghai Composite Index and blue-chip CSI300 also saw small gains. The Nikkei 225 index rose 1.8% in Japan on Friday. It has recovered all of its losses following Trump's announcement that the United States would be imposing the highest tariffs it had ever seen. Trump suspended most of these tariffs, with the exception of China, which will have a 10% tariff. In a client note, ING currency analyst Francesco Pesole said that there is a sense among market participants that they can now impose a more favourable stance from the U.S. Government. Investors will seek confirmation of a more optimistic view on U.S. Assets to justify further dollar gains. The U.S. Dollar Index was up 0.2% this week to 99.623. WARNING SIGNAGE There were plenty of warnings that the calm on the surface may not last. Procter & Gamble cut their forecasts or canceled them due to the increased uncertainty of consumers. Gold was steady at $3,296 per ounce, and analysts from Phillip Securities in Singapore noted that the Gold/S&P500 ratio, which is a measure of investor's gloom, had reached its highest level since the bear market driven by the pandemic of 2020. The 10-year yields remained at 4.30%, easing the pressure on the U.S. Treasury Market. It was heavily sold as Trump's tariffs rattled confidence in U.S. assets and leadership. After a Tokyo inflation rate that was higher than expected, Japanese yields increased along the curve.
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Dollar and stocks are both on the rise this week as a result of hints about tariff relief
Investors focused on signs that the U.S., China and other countries were ready to end their trade war. The dollar rose for the first time in over a month. U.S. Futures are also rising after Alphabet, the parent company of Google and tech giant Alphabet, beat profit expectations. It also reaffirmed AI expenditure targets. This pushed its shares up by nearly 5% after-hours and pulled along other peers. European futures increased by 0.6%, while FTSE Futures were up by 0.2%. Overnight, Wall Street investors brushed aside mixed corporate results. The S&P 500 increased by 2%. The dollar has been beaten by a series of volatile events, including tariff announcements and reversals, and the flight of assets out of the United States. It is now trading at around $1.1330 to a euro and 143.6 Japaneseyen. Eli Lee, Chief Investment Strategist at Bank of Singapore said that the peak of tariff threats is likely to be behind us. Both sides have stated that they will not increase rates above current levels. The tit-for-tat tariffs, which began on April 2, when U.S. president Donald Trump announced hefty import duties, had threatened to stall the trade between two of the world's largest economies. They also prompted concerns about a possible slowdown in growth. The U.S. changed its tone this week and declared that the current situation is unsustainable. China, meanwhile, may exempt some U.S. imported goods from the 125% tariffs, in what could be the most significant sign of Beijing's concern about the potential economic consequences. UNEASY CALM Hong Kong's Hang Seng index rose 1%, and mainland China’s Shanghai Composite Index and blue-chip CSI300 also saw small gains. The Nikkei 225 index rose 1.8% in Japan on Friday. It has recovered all of its losses following Trump's announcement that the United States would be imposing the highest tariffs it had ever seen. Trump suspended most of these tariffs, with the exception of China, which will have a 10% tariff. In a client note, ING currency analyst Francesco Pesole said that there is a sense among market participants that they can now impose a more favourable stance from the U.S. Government. Investors will seek confirmation of a more optimistic view on U.S. Assets to justify further dollar gains. The U.S. Dollar Index was up 0.5% this week to 99.751. The markets in Australia and New Zealand closed due to a public holiday. The markets were not as calm on the surface. Procter & Gamble cut their forecasts or canceled them due to the increased uncertainty of consumers. Colgate-Palmolive will report earnings before the U.S. opens on Friday. After the close of Asia, BYD in China and Ping An in Japan are also expected to announce their earnings. Gold was steady at $3,349 per ounce, and analysts from Phillip Securities in Singapore noted that the Gold/S&P500 ratio, which is a measure of investor's gloom, had reached its highest level since the bear market driven by the pandemic of 2020. The 10-year yields remained at 4.30%, easing the pressure on the U.S. Treasury Market. It was heavily sold as Trump's tariffs rattled confidence in U.S. assets and leadership. After a Tokyo inflation rate that was higher than expected, Japanese yields increased along the curve.
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What next as China approaches peak aluminum production? Andy Home
China's aluminum production is approaching its capacity limit. From just four million tons in 2004, massive investment in primary metals melting capacity has boosted Chinese production from only four million to 43 million tons by 2024. This is 60% of global output. The West has increasingly resisted China's increasing dominance in the global aluminum supply chain, first through trade complaints and antidumping duties, and then more recently with U.S. Tariffs. China's semi-fabricated aluminum exports, which increased by 19% last year to a record of 6.2 million tonnes, were not affected. Things are about to get better. The world is about to change. Beijing's "Action Plan" on aluminium for 2025-2027 confirms that the cap will remain in place, and outlines a plan for what comes next. TOUCHING the ceiling According to the International Aluminium Institute, China's primary aluminum production increased by 2.6% on an annual basis in the first quarter 2025. The average annualised production was 44 million tonnes between January and March, only a million ton short of the cap of 45 million tons set in 2017. According to consultancy AZ Global, it is technically possible that the country's production could exceed the cap. The capacity of a smelter is measured by the amperage designed for the electrolysis process. "One of the first tasks of any plant manager will be to push the output above the rate," the article says. The smelter can produce more than its capacity by increasing the amperage. AZ China estimates China's capacity utilisation at 98.2%. This leaves little room for collective amperage to increase. China's average annual growth rate of 4.0% over the past five years is beginning to slow down. Going Green Chinese operators continue to build new smelters. However, the new capacity will have to be offset by closing older capacity. Beijing's policies in this sector focus on removing less-efficient capacity and ensuring that newer smelters use renewable energy sources. Aluminium production is moving from coal-rich regions to new energy hubs such as Yunnan, with its hydropower and Inner Mongolia which has a massive wind and solar power potential. The goal is to produce a greater amount of low-carbon metal. The action plan also calls for 30% of the national smelter's power to be generated by renewable energy by 2027. Beijing wants to boost production by recycling scrap to reach a target of 15 million tons annually in 2027. Reduced Exports A second offset is already in effect. In December, the government eliminated tax rebates of 13% for exports of aluminum products. This was done to keep more metal on the domestic market. Exports have slowed down sharply since then, with volumes outbound falling by 11% on an annual basis in January and Febraury. Analysts at Macquarie Bank predict that exports will fall by 8% between 2025 and 2030. A more dramatic collapse is unlikely, as the world outside China relies heavily on its products for around 15% of the total demand. Most Western buyers are likely to accept at least a part of the cost increase. It is possible that Chinese aluminum exports have reached their peak. REPRIEVE FOR WESTERN GENERALISERS? Combining a slowdown in Chinese production growth with reduced exports opens up a window for the rest the world's primary aluminum producers. Nearly a million tonnes of smelting capacity in the United States is idle. The 25% tariffs on aluminum imports imposed by President Donald Trump are meant to encourage restarts. After the surge in power prices that followed Russia’s invasion of Ukraine, 2022, around half of Europe's primary smelting capacities are out of operation. Although the structural changes implemented by the largest producer in the world may provide a reprieve for such plants, restarting idled capacities is also a matter of aluminium and electricity prices. After years of low investments, there is renewed interest in greenfield smelters being built in the West. Century Aluminum, a U.S.-based producer, has received $500m in government funding for a project that will launch the United States' first new smelter since 1945. Rio Tinto has been studying low-carbon projects for smelters in Finland and India. But the Chinese dominance will remain Due to a lack of expansion opportunities in China, Chinese producers also look overseas. Beijing's aluminum action plan calls on deeper cooperation with resource rich nations like Guinea, where Chinalco has a project in place to convert Guinea's bauxite into alumina. Shandong Nanshan Aluminium, which produces alumina in Indonesia, plans to expand their refining capacities and add a smelter that can produce 260,000 tons of alumina per year. China has stopped building its own capacity, but it appears that they have no plans to loosen their grip on a material classified by the United States as well as the European Union as a vital raw material. These are the opinions of the columnist, an author for.
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Holcim exceeds expectations for the first quarter ahead of Amrize's spin-off
Holcim, a Swiss construction materials manufacturer, reported a better-than expected first-quarter result on Friday in its final results before Amrize's spin-off from its North American operations. Holcim reported a recurring operating loss of 515 million Swiss Francs ($619m) for the quarter ended March 31. This was higher than the consensus estimate of 494 million Swiss Francs. Sales were stable at 5,54 billion francs compared to forecasts of 5.49 billion. In a press release, CEO Miljan Gutovic stated that "our disciplined M&A implementation continued with five acquisitions of value-adding companies." These transactions will strengthen the aggregates and ready mix businesses in Europe and North America and our specialty building solution in Latin America. Holcim plans to sell 100% of Amrize back to its shareholders. The separation is expected to be complete in June. The spin-off will be one of largest deals in global construction, initially targeting a valuation of $30 billion when announced in January 2024. Amrize plans to list on the New York Stock Exchange, the SIX Swiss Exchange, and the New York Stock Exchange. Last month, the company announced its post-split strategies. It stated that it aimed to achieve an average annual increase in earnings before taxes and interest of between 6% and 10% by 2030. The focus will be on Europe, Australia and North Africa as well as Latin America. Holcim, whose 2024 net sales were 16.3 billion Swiss francs, excluding North America would have an estimated total capital deployment capacity between 2025 and 2030 of 18-22 billion Swiss francs, according to the company. The cash will be used for large acquisitions as well as share buybacks. $1 = 0.8317 Swiss Francs (Reporting and editing by Kim Coghill, Varun H. K. and Ariane L.)
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Under supply pressure, oil prices are expected to drop weekly.
The market is headed for a decline this week due to concerns over the supply of oil. Brent crude futures rose 43 cents, to $66.98 per barrel at 0433 GMT. They are on course to drop 1.4% this week. U.S. West Texas Intermediate crude (WTI), which is also known as WTI, rose 42 cents a barrel to $63.21, but it was expected to fall 2.3% this week. Anh Pham, senior analyst at LSEG, said, "Oil prices are up today as the market reacts to signs that tensions have eased around Trump's Tariffs and a possible shift in Fed policy stance. This has contributed to a broader recovery of the market." The weekly price trend is down, but the outlook for demand remains uncertain due to ongoing trade tensions. "A stronger U.S. Dollar has also added to the pressure on crude prices," he said. Donald Trump, President of the United States On Thursday, the U.S. claimed that trade discussions between China and the U.S. were in progress. This was in response to Chinese claims that there had been no talks. China is considering Exemption Beijing has asked businesses to submit a list of eligible goods and some U.S. exports that are exempt from the 125% tariff. This is the most significant sign yet of Beijing’s concern about the economic impact of the trade war. Trump increased tariffs on Chinese products after Trump's announcement. The oil prices fell earlier this month as a result of the tariffs, which sparked concerns about global demand. The fear of an excess supply is growing. Earlier this week, it was reported that several OPEC+ member countries had suggested that the group increase oil production for a second consecutive month in June. In an interview with CBS News, Russian Foreign minister Sergey Lavrov stated that the United States and Russia were moving in the right directions to end the conflict in Ukraine. However, some specific aspects of a deal still need to be agreed. The easing of sanctions and a halt to Russia’s war in Ukraine could enable more Russian oil to reach global markets. Russia is a member of the OPEC+, which includes the Organization of the Petroleum Exporting Countries. It is also one of the largest oil producers in the world, along with the U.S. Abbas Araqchi, the Iranian foreign minister, said he would be willing to travel to Europe to discuss Tehran's nuclear program. The lifting of sanctions against Iranian oil exports is likely to be the result of successful talks with Europe and America. Iran is OPEC's third largest oil producer, behind Saudi Arabia and Iraq.
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Some European companies question US expansion amid tariff chaos
The erratic tariff policy of U.S. president Donald Trump is making some European smaller companies question whether they should expand into the U.S. Trump wants to encourage foreign companies to invest in the United States by imposing levies on steel, cognac, cars, and sandals. This will lead to new factories being built and thousands of American jobs. The announcements of rollbacks, exemptions, and other changes have made some smaller companies hesitant to commit. EuroGroup Laminations, an Italian company, pays no import duties on the rotors, stators, and other components it provides to U.S. automakers, such as Ford and GM. These products are produced in Mexico and comply with current import regulations. Marco Arduini, CEO of the company, said that even if the company had to move production to the U.S., it would be subject to tariffs on the type of steel it uses for its automotive parts. He said that avoiding potential U.S. Tariffs would not compensate for the extra costs or low availability of steel. U.S. Labour costs are also a concern, as they can be up to six-times higher in Mexico. Due to the current situation, including the possibility that tariffs could trigger a U.S. economic recession, ebm papst - a German motor and fan manufacturer - has put plans on hold to build a new U.S. facility or to expand an existing U.S. site. Klaus Geissdoerfer, CEO of the company, said that if there were an economic downturn on American soil, it could affect demand in a different way. Many economies are built on the strength of small and medium-sized businesses (SMEs), including Italy and Germany. Both countries are members of the European Union and major exporters into the United States. They may be able to react more quickly to new trade risks than larger companies because they have smaller financial cushions than their blue-chip counterparts. Marc Tenbieg is the head of DMB, the association representing Germany's SMEs. DMB said in separate comments that a few SMEs are currently re-evaluating their U.S. business as a result Trump's policies. Andrew Adair said that some member companies of the German engineering association VDMA have delayed purchases. He made the statement following a visit to the United States in early this month. He said that the industry appeared to be on pause at the moment. Trump, after weeks of threats announced a series on broad tariffs for goods imported into the United States by most other countries on April 2. The tariffs included a 20% on EU imports, which was then lowered to 10% as part of what Trump called a "90-day pause" following the selloff in U.S. stocks. Trump's statements that other countries "screwed" the U.S. over the years, reflecting his anger at U.S. Trade Deficits including one of 235.6 billion dollars with the 27-nation EU, have also raised the temperature in the diplomatic and political arena. LAPP in Germany, which produces everything from wires and cables to robotics for factory, has maintained its plans to double the production capacity at their New Jersey site by 2025. Matthias Lapp, CEO of Lapp & Co., said: "As a business family, we plan on the long-term, not just for elections." Tariffs have the potential to affect demand and inflation in the United States. RBC Capital estimates that imports account for 10% of U.S. consumer spending and that "it will be relatively difficult for consumers" to switch away from imported products. The consultancy AlixPartners believes that the average U.S. household's discretionary spending in a post tariff world will drop by more than 10 percent to $27,000. They recommend companies adopt a pause and monitor approach. Eurostat data show that in each of the past three years the EU exported an average of more than 500 billion euro of goods to the U.S. These were mostly pharmaceuticals and vehicles, but also machinery. Trump's primary targets are the steel, auto and car makers in the EU. The U.S. is still the EU's largest trading partner. However, the new tariffs have prompted some political resistance against taking on more exposure. French President Emmanuel Macron has asked European firms to temporarily suspend their planned investments. Industry groups urge European companies to instead focus on other foreign markets, such as India and Latin America. Sebastian Zank is the head of Scope's corporates rating production. He said, "We have seen how quickly things can change." Everyone will remain seated until the picture that emerges can be described as "sustainable."
Blue chip-backed Biomas launches first Brazil reforestation project
Biomas, an initiative for reforestation in Brazil backed by several major corporations, unveiled on Friday its first project. It aims to restore 1,200 ha (2,965 acres), of Brazil's Atlantic coast rainforest, with more than 70 native tree varieties.
The project represents a major milestone for the company formed in 2022 by Vale Mines, Marfrig Meatpackers, Suzano Pulpmakers, Santander Brasil, Itau, and Rabobank.
The initiative comes at a time when Brazil's carbon removal industry is growing, and major reforestation initiatives are already underway. Startups Mombak and Re.green offer credits to companies who want to offset their greenhouse gas emission.
These two developers purchased land from farmers or ranchers, or partnered with these individuals to reforest areas of the Amazon. Biomas has started with a stretch in the Atlantic rainforest of the state of Bahia, and is evaluating future Amazon projects.
Mucununga is the name of a project that will see Veracel Celulose, a producer of eucalyptus paper, invest around 55 million reais (9.7 million dollars) in reforestation land.
In an interview with Biomas CEO Fabio Sakamoto, he said that the Atlantic rainforest was a biodiversity hotspot. He also noted the local infrastructure and the confidence in land titles were factors in the decision to begin work in the coastal biome.
More than two-thirds of Brazil's inhabitants live in the corridor that was once covered with the Atlantic rainforest. This includes the states of Sao Paulo, Rio de Janeiro and other Brazilian states. Scientists estimate only 12% original forest remains.
"Our focus is both on the Atlantic rainforest as well as the Amazon." Sakamoto said, "We have been mapping the opportunities in both biomes over the last couple of years."
Biomas plans to plant around 2 million trees as part of the Mucununga Project to generate approximately 500,000 carbon credit over 40 years. Each credit is intended to compensate for one ton carbon dioxide emissions.
The company's goal is to restore 2 million hectares (roughly 400,000 acres) of unproductive or degraded land in the next 20-year period.
(source: Reuters)