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China and Canada launch WTO dispute over steel and aluminum taxes
The World Trade Organization announced on Wednesday that China had requested consultations regarding a dispute involving Canadian surtaxes, quotas, and tariffs on aluminum and steel products. A WTO notice said that the disputed measures included a surtax, in the form quotas for tariff rates, on certain imports of steel from Canada's nonfree trade partners, such as China. China also challenges a surtax imposed on certain products that contain steel and aluminum from China. Last month, in an effort to protect Canada's domestic steel industry, Prime Minister Mark Carney announced that Canada would implement 25% tariffs for steel imports coming from any country containing steel that has been melted and poured into China by the end of July. Huzaif Qaisar is a spokesperson for Maninder Singh Sidhu, the Trade Minister. He said via email that "these measures are a response to China's non-market behavior and overcapacity, which is undermining Canada’s steel sector and threatens Canadian jobs." Rachel More wrote in Berlin, David Ljunggren edited in Ottawa.
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S.African trade group recommends tariffs to curb steel imports
The South African government's trade body, which is investigating the country's struggling metal sector, proposed import duties of 10% to protect the industry against an influx mainly from China. The International Trade Administration Commission has released its preliminary findings following a review of steel tariffs that was ordered by the South African government in March. This review was carried out as a result of an oversupply of steel, a weak local demand, and high input costs within the South African steel industry. ITAC suggested that the government take emergency measures under World Trade Organisation Rules to protect the steel sector and propose import duties beginning at 10% on all steel products. The imports account for around 35% total domestic consumption. This puts companies like ArcelorMittal South Africa - the country's largest primary steel producer - at risk and threatens thousands of jobs. ITAC's preliminary findings stated that "the current geopolitical environment does constitute an unprecedented crisis, necessitating immediate action under Article 19 and Article 21, of the General Agreement on Tariffs Trade". These rules allow WTO member countries to suspend or withdraw tariff concessions when "any product imported in such large quantities and under conditions that threaten or cause serious injury to domestic manufacturers". Ayabonga Ayabonga, Chief Commissioner of ITAC, told an interview that the organization urged policymakers to determine whether or not the current trade conditions constitute an emergency under WTO rules. Cawe stated that steel import restrictions imposed in recent months by the European Union (EU) and the United Kingdom raised concerns about dumping and diverting in markets like South Africa. Tariffs imposed by Donald Trump, President of the United States, have added to South Africa’s problems. The Commission, whose roles include conducting tariff investigations, providing trade remedies, and implementing import-export controls, stated that its initial findings will not become final until after it receives and reviews feedback from the general public in the next two week. In a public notice, it said that more than 150 submissions had been received, "ranging from requests to increase duty, create rebate provisions, and include specific products under import controls".
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Trump bought bonds worth more than $100 Million during his tenure as president, a disclosure shows
Since taking office in January 2017, Donald Trump has purchased more than $100,000,000 in bonds issued by companies, states and municipalities. This is according to new disclosures that shed light on his vast portfolio. The online forms posted on Tuesday show that the former Republican real estate mogul has made over 600 financial purchases in the past 21 days, the day following his second term as President. The filing of the U.S. Office of Government Ethics on August 12 does not give exact amounts, but only a range. These include corporate bonds issued by Citigroup, Morgan Stanley and Wells Fargo as well as Meta, Qualcomm, The Home Depot and T-Mobile USA. Other debts include bonds issued by states, counties, school districts, cities, as well as other issuers such as gas districts and others. The holdings are in sectors that may benefit from policy changes under the Trump administration, including financial deregulation. On Wednesday, the White House did not respond immediately to a comment request. Trump, a businessman-turned-politician, has said he has put his companies into a trust managed by his children. The annual disclosure form he filed in June revealed that his income, from various sources, still accrued to the president. This has led to accusations of conflict of interest. Trump disclosed more than 600 million dollars in revenue from cryptocurrency, golf properties and licensing, among other ventures, in this disclosure. The president's investment in crypto also added significantly to his wealth. According to an estimate made at the time, the president's assets totaled at least $1.6billion. (Reporting and editing by Sharon Singleton, David Gregorio and Trevor Hunnicutt)
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South Africa's Tariff Body proposes an increase in steel duties to stop imports
The International Trade Administration Commission of South Africa proposed Wednesday import duties on steel products starting at 10% as part of measures designed to protect the sector against an influx of imported goods. After a review of the steel tariffs announced in March as part of South Africa's crisis of steel, which was marked by an oversupply of steel, a weak local market and high input prices, the government released preliminary findings. The government estimates that imports, mostly from China, account for around 35% total domestic consumption. This puts companies like ArcelorMittal South Africa at risk of bankruptcy. South Africa's steel industry has suffered as a result of U.S. President Donald Trump’s tariffs. The Commission, whose role involves conducting tariff investigations, providing trade remedies, and implementing import-export controls, stated that its initial findings will not become final until after it receives and reviews feedback from the general public in the next two week. In a public notice, it said that more than 150 submissions had been received, "ranging from requests to increase duty, create rebate provisions, and include specific products under import controls". The proposal is to increase customs duties by 10% on certain products, including flat-rolled, bars, rods and wires. Currently, the rate of duty for these products is 0%. According to the schedule, selected tube and pipe products, as well as nails, would be subject to a 15% duty. The Southern Africa Customs Union (which includes Botswana and Namibia) also offers rebates for steel products which are imported from South Africa because they cannot be found in these countries. Reporting by Nelson Banya, Nqobile Dudla and Barbara Lewis
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Scientists say that rapid loss of Antarctic ice could be a tipping point for climate change.
A scientific study published Thursday warned that rapid loss of Antarctic sea-ice could tip the climate in a way that is impossible to reverse. It would cause sea level to rise, ocean currents to change and marine life to disappear. The Nature paper aims to describe the effects of global warming in Antarctica, the continent frozen at the South Pole. It said that "Evidence of rapid, interdependent and sometimes self-perpetuating change in the Antarctic environment is emerging." The study used data from observations, ship logbooks, and ice cores to chart the long-term change in sea ice. It also put into context a rapid decrease in recent years. It said that a regime shift had reduced Antarctic sea ice extent below its natural variability in past centuries. In some ways, it was more abrupt, nonlinear, and potentially irreversible, than Arctic sea ice loss. Nerilie Abram, lead author of the study, explained that changes are having knock-on impacts across the ecosystem, which in some cases amplify one another. A smaller ice-sheet reflects less sunlight, which means the planet will absorb more heat. It is also likely to accelerate the weakening the Antarctic Overturning Circulation (AOC), an ocean current that distributes nutrients, regulates the weather, and distributes heat. The loss of ice has a negative impact on wildlife, including the emperor penguins that breed on ice and the krills which feed beneath it. The study found that warming of surface waters will reduce the phytoplankton population, which is responsible for removing vast amounts of carbon dioxide from the atmosphere. Abram, former professor of the Australian National University and chief scientist for the Australian Antarctic Division, said that the Antarctic sea ice could be one of the Earth's tipping points. The study stated that reducing global carbon dioxide emissions could reduce the risk but not necessarily prevent major changes to the Antarctic. Abram explained that "once we begin to lose Antarctic sea ice we will set in motion this self-perpetuating cycle." Even if we stabilize the climate, we will still lose Antarctic sea ice for many centuries.
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Sovecon increases its 2025 Russian wheat production forecast on the basis of improved prospects in Siberia, Urals and Ural
The grain consultancy Sovecon announced on Wednesday that it has raised its forecast of Russia's wheat crop for 2025 to 85.4 millions metric tons. This is up from the previous estimate, which was 85.2 million tons. It cited improved prospects in Siberia as well as the Urals. Sovecon analysts stated in a report that the wheat forecast has been revised upwards as yields are expected to reach record levels in these regions due to favorable weather conditions. Sovecon reported that the overall estimate of grain and pulse production remains unchanged, at 130.5 millions tons. The Russian statistics agency has revised the data regarding the area sown. The weather conditions in the south made it less likely to grow corn. It reduced its forecast from 14.3 millions tons to 13.4 due to unfavorable conditions. Andrey Sizov of SovEcon said that "yields continue to confirm our expectations". "However, although good crops may offset the losses in the South, it will take some time to deliver this wheat to Azov or Black Sea ports. This complicates Russia's export programme over the next several months - which is often the most important period of the year." The Russian IKAR consulting firm raised its forecast for 2025 wheat production to 85.5 millions metric tons, up from 84.5million tons. The Ministry of Agriculture has forecast a grain harvest of 135, 000 tons in 2025, which includes 88-90 millions tons of wheat. (Reporting and writing by Olga Popova, Anastasia Teterevleva, Editing by Mark Trevelyan).
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As the dollar falls, gold prices rise. Focus on Fed Minutes and Jackson Hole
The U.S. Dollar eased on Wednesday, and the gold price rose by nearly 1%. Market participants awaited the minutes from the last U.S. Central Bank policy meeting as well as the upcoming Jackson Hole Symposium for clues about future interest rates. Gold spot rose by 0.9%, to $3,343.42 an ounce at 10:06 am EDT (1406 GMT), after having fallen as low as it had been since August 1, earlier in the day. U.S. Gold Futures rose by 0.9% to $3387.10. The U.S. dollar eased, making dollar-priced-bullion more affordable for other currency holders. Federal Reserve meeting minutes for July will be released at 2:00 pm EDT two days before Fed Chair Jerome Powell delivers his speech at the annual Jackson Hole Economic Symposium on Friday. Two central bankers disagreed with the Fed's decision to keep interest rates the same last month. They wanted rates lowered to prevent further deterioration of the labor market. Bob Haberkorn, RJO Futures' market strategist, said that traders see the recent drop in gold prices as an opportunity to buy ahead of Fed minutes. If Powell is dovish it's good for gold as it doesn't pay interest. If he is dovish, it will be necessary to break through the $3,350/oz barrier and ultimately retest the $3,400/oz level if he is a hawk. According to CME FedWatch, traders expect a quarter-point cut in rates by September. The U.S. president Donald Trump called for Fed Governor Lisa Cook's resignation on Wednesday, citing the call from the head of the U.S. Federal Housing Finance Agency, who urged the Department of Justice investigate Cook regarding alleged mortgage fraud. Silver spot rose 1%, to $37.73 an ounce. Platinum gained 2%, to $1,331.70. Palladium, which had hit its lowest level since earlier in July, was unchanged at $1115.92. Ashitha Shivaprasad reports from Bengaluru.
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Trump bought bonds worth more than $100 Million during his tenure as president, disclosure shows
Since taking office in January 2017, Donald Trump's disclosures revealed that he has purchased more than $100,000,000 in bonds issued by companies, states and municipalities. The online forms posted on Tuesday show that the billionaire Republican President made more than 600 financial transactions since January 21, just one day after his second term as president was inaugurated. The filing of the U.S. Office of Government Ethics on August 12 does not give exact amounts, but only a range. These include corporate bonds issued by Citigroup, Morgan Stanley and Wells Fargo as well as Meta, Qualcomm, The Home Depot and T-Mobile USA. Other debts include bonds issued by states, counties, school districts, cities, as well as other issuers such as gas districts and others. The holdings are in areas that would benefit from U.S. policies under the Trump administration. Trump, a businessman-turned-politician, has said he has put his companies into a trust managed by his children. Trump's annual disclosure form, filed in June, showed that his income from different sources ultimately accrued to him - opening him up to accusations of conflict of interest. The White House did not respond immediately to a comment request on Wednesday. (Reporting and editing by Sharon Singleton, Trevor Hunnicutt and Susan Heavey)
Gold edged up, but hovered near three-week lowests before Jackson Hole Summit
Investors are looking for clues about future rate cuts in the Federal Reserve meeting minutes from July and the Jackson Hole symposium of central banks this week.
As of 0832 GMT on August 1, spot gold rose 0.2% to $3,321.33 an ounce.
U.S. Gold Futures for December Delivery rose by 0.2% to $3364.20.
The U.S. Dollar Index was stable after reaching a high of more than a week earlier in the session. This made gold more expensive for holders of other currencies.
Han Tan, Chief Market Analyst at Nemo.Money, said that spot gold will likely remain in its sideways range, until the Fed resumes its rate-cutting cycles. The dollar's resilience month-to date also makes it difficult for it to move higher.
The minutes of the Fed's meeting in July, which were due later that day, would provide further insight into the central bank’s economic outlook.
The markets will be watching for any further clues regarding the dissenting views from the previous FOMC meeting. If the FOMC minutes reveal that the dissenting voice at the last Fed policy meeting was louder than expected, gold could see a small lift before Jackson Hole," Nemo.Money’s Tan said.
Jerome Powell, the Fed chairman, will be speaking at Jackson Hole Symposium of Kansas City Federal Reserve on Friday.
Gold usually performs well when interest rates are low and there is economic and geopolitical unrest.
On Tuesday, U.S. president Donald Trump said that he would not send ground troops to Ukraine but suggested that air support might be included in a deal to stop Russia's war.
The Ukrainian president Volodymyr Zelenskiy described the White House discussions as a major step towards ending the conflict, and establishing a trilateral summit with Russian President Vladimir Putin.
The price of palladium fell 0.8% to $1,105.98. Meanwhile, the spot price of silver dropped 1% to $36.98 an ounce. Platinum rose 0.4% to $1311.05, while platinum was up 0.4% at $1,311.05. (Reporting by Ishaan Arora in Bengaluru; Editing by Bernadette Baum)
(source: Reuters)