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MORNING BID EUROPE - Bright signs from Beijing and bad omens for Apple
Ankur Banerjee gives us a look at what the future holds for European and global markets The possibility of a de-escalation in trade tensions between Beijing, Washington and other countries provided a boost to the markets on Friday. It boosted risk sentiment and lifted stocks worldwide just as Apple's earnings reminded investors of the true cost of a trade war. China's Commerce Ministry stated that Beijing is "evaluating" Washington's offer to hold discussions over President Donald Trump's tariffs of 145% and that Beijing's doors are open for discussion. China also said that Washington should show "sincerity in negotiations" and be ready to drop its unilateral tariffs. Investors were relieved by the prospect of trade negotiations, as tariffs had caused global markets to tremble and raised fears of a recession. The data for the two largest economies in the world has begun to show signs that they are weakening. S&P 500 futures and Nasdaq were surging, and European bourses are set to open strongly ahead of an avalanche of corporate earnings led by oil giant Shell and German chemicals company BASF. The current earnings season has shown the costs of the erratic U.S. Trade Policy and its back-and forth tariffs. This led many companies around the world to lower or even withdraw their profit forecasts. Apple cut its share-buyback program by $10 billion on Thursday and warned that tariffs may add $900 million to costs in this quarter. This has dimmed some of the optimism following strong results from Microsoft Meta Platform. Apple CEO Tim Cook explained how Apple has begun stockpiling products to ensure that most of the iPhones sold in the U.S. during this quarter won't come from China. While the markets may have taken comfort in the comments made by Beijing on Friday, there has still not been any resolution to the trade discussions that the U.S. and its allies have held. This was especially evident when Japan’s Finance Minister said on Friday that the country could use their $1 trillion plus holdings of U.S. Treasuries in trade negotiations with Washington. It raised explicitly for the very first time, its leverage as an enormous creditor of the United States. The following are key developments that may influence the markets on Friday. Economic events: April flash data on inflation for the eurozone, manufacturing PMI data in France and Germany Earnings of ING, BASF NatWest, Shell Want to stay up-to-date with the latest tariffs? Our daily news digest provides a quick overview of the most important headlines that impact global trade. Tariff Watch is available here.
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China opens the door to trade talks with US
The oil prices rose on Friday, after China announced it was willing to talk with the United States about tariffs. This raised hopes for a possible de-escalation of the bitter trade war that has been raging between the two world's largest economies. Brent crude futures increased 49 cents or 0.8% to $62.62 per barrel at 0446 GMT. U.S. West Texas Intermediate Crude futures gained 50 cents or 0.8% to $59.74 per barrel. China's Commerce Ministry announced on Friday that Beijing was "evaluating" Washington's proposal to hold discussions aimed at addressing U.S. president Donald Trump's sweeping duties, signaling a possible ease in the trade tensions which have shaken global markets. Oil prices have been impacted by recent concerns that the broader global trade war may push the world economy into a depression and crimp demand for oil, at the same time as OPEC+ is preparing its output increase. "If Washington takes it up, as I anticipate, it could be a game changer in the gloom and doom mood that has engulfed markets for weeks," said Vandana, founder of oil-market analysis provider Vanda Insights. Hari stated that "no one expected a smooth sail for sure but it is an encouraging breakthrough to the impasse which has been weighing down on markets." Trump's threat to impose secondary sanction on Iranian oil buyers also supported the price of oil. Trump's remarks followed the postponement by the United States of talks with Iran about its nuclear program. He had earlier restored a campaign of "maximum-pressure" against Iran. This included efforts to reduce the country's exports of oil to zero to prevent Tehran from developing nuclear weapons. The oil prices rose late Thursday to close nearly 2% higher, erasing the earlier losses on the expectation of more OPEC+ supplies. On Wednesday, it was reported that Saudi Arabia, the de facto leader in OPEC+ and the country that has informed allies of its refusal to further cut oil supply, had briefed industry experts and other partners. Earlier reports said that several OPEC+ countries are planning to propose the group accelerates production increases in June for a 2nd consecutive month. On May 5, eight OPEC+ member countries will gather to determine a June production plan. The BMI unit of Fitch said that there was no natural reentry point for the barrels. This group would have to suffer some price pain, no matter when they unwind their cuts. Reporting by Mohi Narayan from New Delhi and Shariq Khan from New York. Editing by Shri Navaratnam
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Jan De Nul Installs First Foundation at RWE’s Thor Offshore Wind Farm
Jan De Nul has kicked off the installation campaign of the monopile foundations for RWE’s Thor offshore wind farm, completing the installation of the first of 72 monopiles with its heavy-lift vessel Les Alizés.When finished, Denmark’s largest wind farm to date will provide enough renewable energy to power more than a million Danish households.The 72 wind turbines will find their home near the west coast of Jutland, some 22 kilometers offshore, and will make up RWE’s Thor wind farm, with the capacity of more than 1 GW.The monopile foundations have lengths of up to 100 meters and weigh up to 1,500 tones. Les Alizés picks up the foundations at Eemshaven in the Netherlands, before sailing to the installation site off the western coast of Jutland, near Thorsminde.The final monopile installation is planned towards the end of 2025.Besides the monopile foundation and scour protection installation, Jan de Nul will also install the inter-array cable system and the export cables connecting the offshore and onshore substations.“Our Thor offshore wind farm - currently under construction - will be Denmark’s largest to date. The successful installation of the first monopile marks a significant milestone, achieved through the collaborative efforts of everyone involved. My thanks go to all colleagues and suppliers for their contribution so far,” said Günther Fenle, Project Director for Thor at RWE.“RWE’s Thor offshore wind farm is one of the key projects of 2025 for Jan De Nul. This is yet another big step in building the energy transition, and we execute multiple scopes of work: from installing inter-array and export cables, over scour protection to monopile foundations. For the diverse areas of expertise, we are deploying several units out of our fleet of vessels,” added Philippe Hutse, CEO Offshore Energy at Jan De Nul.
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EnerMech Gets LLOG’s Gulf of America Pre-Commissioning Job
Energy industry services firm EnerMech has secured a contract from oil company LLOG for pre-commissioning services at the Salamanca platform in the Gulf of America.The contract covers hydrotesting and nitrogen dewatering of three 8-inch infield flowlines, one 16-inch oil export pipeline and one 10-inch gas export pipeline. The contract award follows a previous contract in for topside pre-commissioning services which EnerMech secured in 2024.The Salamanca Floating Production Unit (FPU) will operate at a depth of approximately 6,400 feet of water with production from the Leon and Castille fields.With an initial production capacity of 60,000 barrels of oil per day and 40 million cubic feet of natural gas per day, this project is poised to make a substantial contribution to the United States’ energy sector.The FPU is a refurbished structure, previously the decommissioned Independence Hub production facility.“The Salamanca project is an important one for the future of the country’s energy sector, and we are proud to have been chosen to work on what is a vital piece of infrastructure.“To secure a second contract on the development is a strong reflection of the capabilities and expertise of our team in the region and I’d like to give kudos to Brennon Fitzgerald for their leadership and guidance,” said Charles ‘Chuck’ Davison Jr., EnerMech CEO.InterMoor Delivers Mooring Piles for LLOG’s Salamanca FPULLOG Hires ABL for Marine Warranty Services at Salamanca Project in Gulf of MexicoSalamanca Development: LLOG Taps Subsea 7 for GOM Pipeline Work
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Financial Times - May 2
These are the most popular stories from the Financial Times. These stories have not been verified and we cannot vouch for the accuracy of these reports. Headlines EU negotiator: Europe is ready to offer Trump 50 billion euro in trade Activist Investor's Play for Upper Crust Owner Sets Stage for Takeover Harrods becomes the latest British retailer to suffer a cyber-attack The UK government has set aside 94 millions pounds for British Steel's rescue. View the full article The EU's chief negotiator has said that Brussels is looking to increase its purchases of U.S. products by 50 billion euro ($56.50billion) in order to solve the "problem" with the trade relationship. He added that the EU was making "certain progresses" toward a deal. Irenic Capital Management, an activist investor, has a stake in SSP Group of about 2% and is pressuring the Upper Crust owner for a higher profit margin. Hackers have attempted to hack into the systems of London's Harrods department store. This is the third high-profile attack in the UK on a retailer within two weeks. The previous incidents were at Marks & Spencer, and the Co-op Group. The British government has set aside nearly 100 million pounds for the bailout of British Steel, just weeks after assuming control of two of its blast furnaces. ($1 = 0.8850 euros) (Compiled from Bengaluru Newsroom)
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Oil prices increase as China opens up for trade talks with US
The oil prices rose in the early Asian hours of Friday, after China announced that it was open to talks with the United States. This raised hopes for a deescalation of the bitter trade war between two world's largest economies. Brent crude futures increased 38 cents or 0.6% to $62.51 per barrel at 0136 GMT. U.S. West Texas Intermediate Crude futures also rose 38 cents or 0.6% to $59.62 per barrel. China's Commerce Ministry said on Friday that the United States had recently taken steps to start a dialog with Beijing through information being passed along by relevant parties. Oil prices have been impacted by recent concerns that the broader global trade war may push the world economy into a depression and crimp demand for oil, at the same time as OPEC+ is preparing its output increase. The sentiment toward crude oil was boosted by the signs of a possible easing of trade tensions between China and the United States, the largest importer of crude in the world. The threat by Donald Trump, the president of the United States, to impose secondary sanction on Iranian oil buyers also supported oil prices. ANZ analysts wrote in a report that the threat of a tighter crude supply had them worried. Trump's remarks followed the postponement by the United States of talks with Iran about its nuclear program. He had earlier restored a campaign of "maximum-pressure" against Iran. This included efforts to reduce the country's exports of oil to zero to prevent Tehran from developing nuclear weapons. The oil prices rose late Thursday to close nearly 2% higher, erasing the earlier losses on the expectation of more OPEC+ supplies. On Wednesday, it was reported that Saudi Arabia - the de facto leader in OPEC+ - had informed allies and industry professionals that they were unwilling to support oil prices by cutting further supplies. Earlier reports said that several OPEC+ countries are planning to propose the group accelerates production increases in June for a 2nd consecutive month. On May 5, eight OPEC+ members will gather to discuss a plan for June. (Reporting and editing by Shri Navaratnam in New York)
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The worst of New Zealand's extreme weather has passed, and cleanup is underway
Metservice, the New Zealand government's weather forecaster, said that most severe weather warnings in New Zealand had been lifted by Friday. Wellington, New Zealand's capital, was hit with the strongest winds it has seen in over a decade. Schools and offices were closed and flights cancelled. In the Canterbury region in the middle South Island, heavy rainfall caused flooding and landslides. A few people were forced to evacuate. As there is still flooding on the surface and road closures, both Christchurch City and Selwyn District are in a state of emergency. Selwyn District Council stated in a post on Facebook that the worst weather is over. Wellington International Airport has reopened. However, local news organisation Stuff reported that some planes have not been able to land. Images posted on local news websites showed debris and rocks littering the road near the south coast of the city and the waves breaking over the seawalls. Wellington Region Emergency Management Office posted on Facebook that they continue to urge people to avoid travel unless absolutely necessary. (Reporting and editing by Matthew Lewis in Wellington)
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Consolidated Edison to invest $72 billion over the next decade
Consolidated Edison, a utility firm, announced on Thursday that it will invest roughly $72 billion in capital over the next ten years to increase its capacity, improve grid safety, and maintain reliability. U.S. Electric utilities are investing more in infrastructure as a result of extreme weather and a growing demand. This is to meet the increased demand, but also to improve resilience. Utility companies have been facing lawsuits for billions of dollars in damages over the last few years because of their role in wildfires. Consolidated Edison announced that $66 billion would go to core services, which support safety and reliability. The rest of the money will be spent on clean energy, climate resilience, and customer engagement. Separately the New York utility beat its first-quarter profit expectations, thanks to regulatory rate relief. U.S. utilities are seeking to increase customer bills in order to fund infrastructure improvements. This is because the electrical grids of the United States face extreme weather conditions and a growing demand as a result of industry electrification, data center expansions and increased industrial electrification. U.S. utilities have become more popular as a defensive strategy, providing investors with a safe, low-risk investment. Utility companies are a safe haven in turbulent markets because of their regulated revenue models, which shield them from volatility in demand and other risks. Falling interest rates also help to boost their appeal. According to LSEG, the company reported an adjusted profit per share of $2.26 for the quarter ending March 31. This compares to analysts' estimates of $2.20. Reporting by Tanay Kumar and Arunima in Bengaluru, Editing by Shailesh Kuber
Copper prices rise as China vows more stimulus steps
Copper prices increased on Thursday, rebounding from losses earlier in the session, as Chinese officials vowed more policy measures to spur growth.
Three-month copper on the London Metal Exchange (LME). rose 0.6% to $9,869.50 per metric heap by 0631 GMT,. moving closer to the 10-week high of $9,913 it struck in the. previous session.
The most-traded November copper contract on the Shanghai. Futures Exchange (SHFE) increased 0.1% to 77,500 yuan. ($ 11,042.40) a heap.
Chinese leaders vowed to hit the 2024 economic growth. target and stop decreases in the real estate market.
It's the macro story and favorable expectations that is. driving rates, nothing to do with principles or real demand,. stated a trader.
LME copper has acquired 6.5% so far this month and is on track. for the very best month-to-month gain since April.
The U.S. Federal Reserve cut rates last week, and China. revealed its biggest stimulus because the pandemic this week.
Previously in the session, copper prices fell on profit taking. on both bourses.
A slew of disappointing data this year raised concerns of a. prolonged structural slowdown in China, particularly in the. home sector, which consumes a large amount of metals.
The market rallied truly quick. There needs to be. short-term pullback and debt consolidation. But in the longer term,. it will increase again. The China story is positive, the trader. added.
LME aluminium increased 0.6% to $2,554 a load, nickel. increased 0.1% to $16,805, lead jumped 0.4% to. $ 2,105, zinc climbed 1% to $3,026, while tin. traded nearly flat at $32,095.
SHFE aluminium fell 0.1% to 20,145 yuan a load, tin. shed 1.4% to 257,060 yuan, while nickel. increased 0.6% to 128,450 yuan, zinc rose 0.7% to. 24,645 yuan and lead edged up 0.1% to 16,685 yuan.
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(source: Reuters)