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Canada reduces EV regulations, but increases incentives
Mark Carney, the Canadian Prime Minister, announced on Wednesday that his government would scrap a national mandate for electric vehicle sales and instead increase incentives to encourage EV purchase and charging. Carney announced that Canada would provide C$2.3billion ($1.68billion) in incentives up to C$5,000 for individuals or businesses who purchase or lease EVs. C$1.5billion will also be allocated to EV charging. Canada will also give up to C$3.1billion to Canada's auto manufacturing sector to assist it in making the expensive transition to electric vehicles. He said that the recently announced partnership with China would "drive new Chinese joint venture investments in Canada" and allow a certain volume of Chinese electric vehicles to be imported into the Canadian market. These measures are in response to the recent decision by the European Commission to reduce rules that would have effectively phased-out sales of?gasoline- and diesel-engined cars due to slower than expected adoption of EVs by consumers. Canada's new incentives are far more supportive of EVs than those in the United States who recently eliminated?key tax benefits for battery-powered vehicles. Carney's announcement was praised by automakers, but some environmentalists condemned it. Canada announced that it would introduce stricter emissions standards for model years 2027-2032. It says this will help it achieve its goal of 75% electric vehicle sales by 2035, and 90% by 2040. In contrast, in September, the United States ended its long-standing $7,500 electric vehicle tax credit. Since Donald Trump became president last year, U.S. has taken several steps to help automakers sell gas-powered cars. Changes to Avoid Burdens in the Auto Sector: PM Carney stated at a recent press conference that replacing Canada's mandate for EV sales with stricter vehicle emission standards would "focus on the results that matter most to Canadians while avoiding burdens on the Canadian automotive industry." Ottawa, then under Justin Trudeau as Prime Minister, mandated in 2023 that 20% of vehicles sold by 2026 would be emission-free. Vehicle manufacturers were not happy with the initiative, claiming it would result in unsustainable costs. Carney said he still considered Canada to be "a leader on climate change," noting the country would release its climate-competitiveness strategy in the coming weeks. Sam Hersh, a member of Environmental Defence's advocacy group, called the new EV Strategy "a huge failure." Hersh stated that while the short-term benefits for automakers may seem appealing, they will cause long-term problems and set the industry down a path of inevitable decline. The Canadian Vehicle Manufacturers' Association praised Carney's actions, saying that "funding for renewed purchase incentives as well as a robust strategy to develop charging infrastructure will continue to drive EV Adoption." Ontario Premier Doug Ford described the "new strategy" as a "pivotal moment", given that the U.S. president Donald Trump is attacking the economy and sovereignty of the country. Consumer Choice Center, a group that advocates for consumers' rights, also applauded Carney’s EV announcement. They said: "it has always been wrong for governments to try and dictate to Canadians which type of vehicle they should buy." CANADA FOLLOWS EUROPE In December, the 27-member European Commission agreed to lift its ban on new combustion engine cars?from 2030. Carney, citing U.S. Tariffs' damage to the highly-integrated North American auto industry, urges the country to "diversify their trade and boost local manufacturing." In November last year, the federal government scrapped an emissions cap for the oil and gas industry and removed rules on clean electricity in order to encourage investment in energy production. Canada will maintain counter-tariffs for auto imports coming from the United States. It is also looking into ways to encourage Canadian manufacturers to increase production and invest. Carney reached a first trade agreement with China last month to reduce tariffs on electric vehicles. Canada will allow Chinese EVs up to 49,000 at a 6.1% tariff on most-favored nation terms. The quota is set to increase gradually to around 70,000 in 5 years. Carney stated that Chinese electric vehicles would not qualify for government incentives.
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Iron ore falls on the commodities rout but supply risks limit the downside
Iron ore futures fell for the second time in a row on Friday. This was due to a general commodities sell-off that was triggered by a decline in Wall Street tech shares. The Singapore contract dropped below $100 for only the first time since November 2025. As of 0303 GMT, the most-traded contract for May iron ore on China's Dalian Commodity Exchange was trading 1.23% lower. It was 760.5 Yuan ($109.58), per metric ton. This week, the contract has fallen by 3.91%. The benchmark March Iron Ore traded on the Singapore Exchange fell 0.91% to $99.7 per ton. Iron ore has lost 3.99% so far this week, and is set to have a fourth consecutive weekly decline. After a tech selloff on Wall Street due to concerns over the artificial intelligence boom, iron ore prices dropped along with other commodities. According to a February 6 report by ANZ, weaker?fundamentals are pushing?iron ore price down beyond the $100 threshold. Both inventories and shipments in Chinese ports have increased over recent weeks. Rio Tinto has also withdrawn from talks with Glencore, which would have created the largest mining company in the world. Iron ore prices could be supported by declining shipments from Brazil and Australia, two of the top suppliers. Brazil's iron ore shipments in January were lower than expected, as the second largest producer of iron ore is experiencing a rainy season that typically lasts from April to May. Due to the threat of cyclones, key Australian ports that export iron ore are being cleared. This could disrupt a?supply?. The Australian cyclone season typically lasts from April to May. Coking coal and coke, which are both steelmaking ingredients, have also declined, by 2.33% and 0.88%, respectively. The benchmarks for steel on the Shanghai Futures Exchange have lost ground. Hot-rolled coils retreated by 0.37%. Wire rods softened by 0.47%. Stainless steels decreased by 0.85%.
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Investors in Australia applaud the end of Glencore's takeover talks
Australian Rio Tinto shareholders have welcomed the decision of the mining giant to end merger discussions with Glencore. They said that now it is up to the company's new strategy, which they had placed so much emphasis on. The proposed merger, first announced in January, was intended to create the largest mining company with a value of more than $200 billion. Rio announced on Thursday that the two companies were unable to reach a deal which would have provided shareholders with enough value. Rio's investors feared that the miner could overpay Glencore to make a deal. Sources said that Glencore wanted to give its shareholders 40% of the combined?company. Andy Forster, Argo's?senior investor officer, said: "It is a positive sign that Rio does not appear to overpay." It would have taken a few more years to integrate and complete the deal. Rio Tinto shares listed in Australia rose up to 2.6%, reaching a new record high. However, they have since pared these gains and are now only up by about 1%. The S&P/ASX200 fell 2%. This reinforces Rio's approach to capital management. John?Ayoub of Wilson Asset Management, portfolio manager at Rio and Rio investor said, "We are delighted to see Simon Trott passing his first test as CEO." He said that the merger would have resulted in a "positive zero-premium" but not at Glencore's desired takeover valuations. Rio should focus now on its existing pipeline growth projects. Trott stated that under his leadership Rio Tinto will become "stronger" and "sharper", as he seeks to focus on Rio's core assets. Hugh Dive said that the Glencore bid "was the exact opposite" of Trott's strategy. Atlas Funds Management is a Rio Tinto investor. He said that "miners have a terrible track record over the long term for mega mergers." "It's probably a fortunate escape for Rio but it also signals the new desire of management to make large acquisitions." (Reporting and editing by Scott Murdoch)
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Stocks tumble as AI rout deepens, cryptos rebound
The global equities market extended its losses to a third consecutive day on Friday, as the selloff on Wall Street intensified. Precious metals and cryptocurrency were also gripped by a ferocious volatility. MSCI's broadest?Asia-Pacific?"shares outside Japan fell 1%, marking a second consecutive day of losses. South Korea's Kospi plunged 5% and prompted a short trading halt just after the opening. S&P 500 futures dropped 0.2%, while Nasdaq futures were down 0.4%. Tony Sycamore is a market analyst with IG Sydney. He said that investors are reevaluating their commitment to three pillars which have supported markets for the past six-months: AI, cryptocurrency, and precious metals. This raises the odds of a more serious unwind. Stocks fell overnight amid fears that AI models could start eating into software firms' profits. The S&P 500 turned negative for the entire year, as concerns about the labour market increased. A survey by global outplacement firm Challenger, Gray & Christmas on Thursday showed that the number of layoffs made by U.S. companies in January was at its highest level in 17 years. Silver and gold both fell by as much as 10 percent before recovering. White metal fell 1.4% to $70.26. Bitcoin surged 3.7% to $65,446.07, after falling 4.9% earlier to a low $60,008.52. Ether rose 4.4% to $1,928.12 after a 5.1% drop. The S&P 500 Software and Services Index dropped 4.6%. It has lost about $1 trillion of market value since the 28th January, in a "software-mageddon" selloff. Chris Weston is the head of research for Pepperstone Group in Melbourne. He added, "We could witness casualties later this year." He said that capital markets might not be kind to certain businesses. "Mag7" is the term used for the seven mega-cap technology companies. Amazon shares fell 11.5% on Thursday in after-hours trade after the company announced a capital expenditure increase of more than 50% this year. Markets are now betting on a greater likelihood that the Federal Reserve will ease policy at its next meeting. However, most still expect it to stay on hold. Fed funds futures price a 22,7% chance of a 25 basis-point cut? at the U.S. Central Bank's next 2-day meeting ending on March 18. This compares to a 9,4% chance the day before, according CME Group’s FedWatch tool. Recently, the U.S. dollar index, which measures greenback strength in relation to a basket six currencies, was flat at 97.92. The yield of the 10-year Treasury bond in the United States was down 2.8 basis point at 4.18%. Japanese government bonds were bought across the curve as the yen rose 0.3% to 156.58 per dollar. Sunday's elections Brent crude oil was down 0.4% last time on the energy markets at $67.31. Reporting by Gregor Stuart Hunter, Tom Westbrook and Shri Navaratnam; Editing by Thomas Derpinghaus and Shri Navaratnam
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Berkeley Energia, a subsidiary of Australia's Berkeley Energy, claims that Spain owes it $1.25 billion over uranium disputes
Berkeley Energia, an Australian company, said that it had filed a memorial for a claim of?about $1.25bn against Spain before the World Bank's arbitration tribunal. This was up from a prior request. It is related to the Salamanca uranium blockade project. The mining group stated that its unit, Berkeley Exploration filed the claim at the International Centre for Settlement of Investment Disputes. It included background information on the project and the dispute as well as key witness statements. The company filed an arbitration request in May 2024, seeking $1 billion from the Spanish government for refusing to grant approval of its uranium mining project. The project near Salamanca received preliminary approval in 2013 but the Spanish Energy Ministry denied final approval again in 2021. Berkeley accused the government of violating its rights in 2024 under the Energy Charter Treaty. This international agreement was designed to promote energy safety through a more open and competitive market. The company said in a Friday statement that Spain has until 2026 to reply to the?memorial of claim. As of 0030 GMT, shares of the company had fallen as much as 8.8% to A$0.52, along with the mining sub-index which fell 2.8%. Sherin Sunny, Bengaluru. Vijay Kishore, Rashmi aich and Vijay Kishore edited the article.
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Silver hammered as AI crisis deepens
Asian stocks continued to fall in early trading on Friday, as the selloff on Wall Street intensified. Precious?metals like gold and cryptocurrency were gripped by a ferocious volatility. MSCI's broadest Asia-Pacific index outside Japan dropped 0.9%. This was led by a 5% plunge in South Korea's Kospi, which caused a short trading halt shortly after the opening. Japan's Nikkei fell 0.7% while S&P 500 emini futures dropped 0.6% and Nasdaq E-mini Futures plunged 1.1%. "Investors have begun to 'question their commitment to the pillars which have supported markets for the past six months, namely AI, crypto and precious metals," said a market analyst at IG, Sydney, Tony Sycamore. This increases the chances of a more significant unwind. Stocks fell overnight amid fears that AI models could start eating into software firm profits. The S&P 500 turned negative for the entire year, as concerns about the labour market increased. A survey by global outplacement firm Challenger Gray & Christmas on Thursday showed that the number of layoffs announced 'by U.S. companies in January rose to its highest level in 17 years. Gold fell 1.6% to $4691.76, while silver plunged another 8.9% to $64.912. The cryptocurrency markets continued to lose money after a massive $2 trillion loss on Thursday. Bitcoin fell 3% to $61,238.64, and ether was down 1.8%, at $1,813.77. (Reporting and editing by Shri Navaratnam.)
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Mexico is looking for a way to send fuel without US tariffs to Cuba, according to sources
Sources familiar with the situation said that Mexican officials are looking at ways to ship fuel to Cuba in order to meet the island's "basic needs" such as transportation and electricity, without provoking Washington. Washington has threatened to impose tariffs on countries that supply fuel to Cuba. Sources said that high-level Mexican officials had been in contact with their counterparts in the United States to clarify the extent of the tariff threat described by President Donald Trump through an executive order, and to see if there was a possible way to get the fuel they desperately needed. Mexico's ability to find a solution is still uncertain. The White House has referred to Trump's previous remarks, in which he said that Mexico would cease sending oil to Cuba on Monday, without explaining why he believed this. Requests for comment from the U.S. State Department or Mexican presidency were not immediately responded to. Mexico's Foreign Ministry stated that it had no information about the incident. Cuba imports fuel to meet two-thirds its energy requirements, but is also struggling with power outages that are getting worse and long queues at gas stations. After the U.S. blocked Venezuelan tankers and President Nicolas Maduro was captured in January, the shipments of Venezuelan oil to Cuba ceased. Mexico is now Cuba's biggest supplier. In mid-January however, the Mexican government stopped shipments of crude oil and refined products due to pressure from the Trump Administration. Washington then threatened to impose tariffs on oil-supplying countries to Cuba, claiming that the island poses an "extraordinary" threat to U.S. security. Havana denied this claim. One of the sources who asked to remain anonymous in order to discuss private issues said, "There are almost daily talks." Mexico does not want tariffs to be imposed but is firm in its policy to help the Cuban people, the source said. Cuban officials announced on Thursday that they were preparing an emergency plan to deal with "acute fuel shortages". They would reveal the details in the coming week. This week, U.N. Sec-Gen?Antonio Guterres said that Cuba faces a "collapse" if oil is not provided to meet its requirements. Mexico and the ruling?Morena Party have maintained long-standing ideological and historical ties to Cuba. President Claudia Sheinbaum faces pressure within her coalition not to abandon Havana. Three of the four sources said that talks were progressing, and they were optimistic about a possible solution. Two of the four sources claimed that Mexico could send a tanker containing gasoline, food, and other supplies to the island within days, if a deal is reached. Sheinbaum stated last Friday that imposing tariffs on oil-supplying countries could lead to a humanitarian crisis that would affect hospitals, food and other basic services in Cuba. This situation must be avoided by respecting international law and dialog. (Reporting and editing by Stephen Eisenhammer, Nia Williams and Adriana Barrera in Mexico City; Additional reporting and editing by Ana Isabel Martinez and Adriana Barera in Mexico City; Marianna Pararaga in Houston)
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Oil prices continue to fall ahead of US-Iran negotiations
U.S. Crude Futures continued to decline on Friday. They are on track for their first weekly loss in weeks as investors focused on the outcome later that day of the U.S. and Iran nuclear talks in Oman. U.S. West Texas Intermediate Crude was $62.47 per barrel at 0013 GMT. This is down 82 cents, or 1.3% after the price closed 2.84% lower Thursday. The U.S. has agreed to hold talks with Iran in Oman this Friday, amid increased tensions in the Middle East as the U.S. is building up its forces and regional players are trying to avoid a possible military confrontation. Around a fifth of all oil consumed in the world passes through the Strait of Hormuz, which connects Oman with?Iran. Saudi Arabia, Kuwait, Iraq, United Arab Emirates and other OPEC countries export the majority of their crude oil via the strait. Capital Economics analysts stated in a note that "escalating 'geopolitical tensions' between the U.S. "But we believe that geopolitical concerns will give way to weak fundamentals," said the experts, pointing out a rebound in Kazakhstan's output which will push oil prices down to $50 per barrel by 2026. (Reporting and editing by Chris Reese; Florence Tan, Reporting)
STOXX 600 Europe is down due to a decline in defense stocks
The European benchmark index fell on Tuesday as a result of a sell-off among defence stocks, and investors waited for the important U.S. Inflation data this week and the European Central Bank’s monetary policy announcement.
The pan-European STOXX 600 closed 0.6% lower on Monday, just a day after its best session in almost three weeks. Benchmark indexes for Germany, France, and Italy fell between 0.9% and 1,3%.
Defense-related stocks such as Sweden's SAAB and Italy's Leonardo were among the worst performers on the STOXX 600. They fell between 4.9% to 9.8%.
The European Aerospace and Defence Stock Index fell 3.7% on Monday, the steepest drop in over a month.
The traders have become nervous
Analysts have noted that the valuations of some sectors may be stretched, given the record-breaking performance fuelled by increased military spending following Russia's invasion in Ukraine in February 2022.
The ECB policy decision on Friday and the U.S. report on inflation on Wednesday could provide some insight into when the major central banks will start cutting interest rates in this year.
Bank of America analysts wrote: "Our view is that confidence in achieving rate reductions is increasing, but data still needs to be collected and are insufficient for any action."
The'meeting by meeting' approach means that we shouldn't be expecting guidance on the pace or depth of the cut cycle.
The euro zone's bank shares fell 1% following an ECB survey that showed lenders lowered their bar for first-quarter mortgage approvals, the first time in more than two years. However, demand for credit continued to fall as borrowing costs remained very high in a stagnant economic environment.
Daimler Truck Group fell 4% following a 13% decline in sales for the first quarter.
Biomerieux's stock jumped by 8.6% following the French diagnostics company's announcement of organic growth in its first quarter that was above estimates and a presentation of a five-year strategy plan.
KGHM's share price rose 8.7% after BoFA Securities upgraded the miner twice.
BP shares rose by 1.3% following a forecast from the UK oil giant that the first quarter upstream production would be higher than the previous three-month period.
Fincantieri, an Italian shipbuilder, rose 3.9% following the finalisation of a deal to supply four new ships to Norwegian Cruise Line.
Basic resources outperformed the overall trend, rising 1.4% for the second day in a row to reach its highest level since January.
The Italian government has cut its growth projections for this year and the next, and warned that public debt will rise. Reporting by Johann M Cherian and Ozan Ergenay; Editing and production by Sherry J. Phillips, Shounak D. Dasgupta, and Richard Chang
(source: Reuters)