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US copper futures are rising as concerns about tariffs mount
The U.S. Copper prices continued to rise on Thursday, surpassing the London benchmark. Worries about US tariff plans and economic growth concerns for the entire market inflated the regional premium. The most actively traded May copper futures at the U.S. Comex rose by 0.8% to $4.62 per lb. The London Metal Exchange's three-month copper fell 0.3%, to $9.435 per metric ton at 1120 GMT. Nitesh Nitesh, commodity strategist at WisdomTree, said: "Trade talks are adding layers to uncertainty in the base metal markets." China, which is the largest metal consumer in the world, urged the U.S. on Thursday to stop an investigation into possible new tariffs on imports of copper, and threatened to retaliate against any Chinese entities that were caught up with the levies. On Wednesday, U.S. president Donald Trump lowered the prospects for the impending levies against Canada and Mexico as they were to take effect in April instead of March 4, as previously announced. A White House official confirmed that tariffs on Mexican and Canadian products were still in place "as of now", causing further confusion about U.S. Trade Policy. Trump floated a proposal on Wednesday for a "reciprocal tariff" of 25% on European cars and goods. The Comex copper contract premium has increased to $759 per ton, up from $633 on Tuesday. Nickel gained 1.8%, while LME aluminium gained 0.5%, to $2.644.50 per ton. Zinc also rose to $2.840.50, and zinc to $2.840.50. Lead fell 0.3%, to $2.004. LME Tin fell 1%, to $32,030. The April contract at the Shanghai Futures Exchange dropped by 3.7%. Analysts attributed this to the expectation that major Myanmar supplier Wa state could resume production. On Wednesday, a notice purporting to come from the Wa State Industrial Minerals Management Bureau circulated on Chinese social media. It outlined the process for obtaining permits for mining and exploring. (Reporting and editing by David Goodman.)
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France's Industry Minister says that Europe's steel sector needs more protection
Marc Ferracci, French Industry Minister, said that the European steel industry is in trouble and it's important to protect its ailing sector. The current safeguards on steel imports are not adequate and do not adapt to today's market. Ferracci said, "The European industry, and the steel sector, need protection. This means, in the short-term, strengthening safeguard measures," at an event for the European steel industry in Paris. He said that European steel plants would close if they did not take action to combat the heavily subsided imports from China, and the looming U.S. Tariffs. The European Commission is examining whether it should tighten the current system of quotas for steel imports in order to protect EU producers against new tariffs that U.S. president Donald Trump intends to impose to steel and aluminum imported into the United States on March 12. Ferracci stated that EU safeguard measures implemented in 2016 which will end in 2026 are no longer in line with the realities of the European Steel Market in terms of both volume and tariff levels. Ferracci said that Europe must also respond strongly but proportionately, to Trump's recent tariff threats. He described them as "worrying, but not surprising." Trump announced on Wednesday that his administration will soon announce a 25 percent tariff on EU imports. (Reporting and editing by Leigh Thomas, Dominique Vidalon)
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Italy prepares $3 billion package to help households and businesses cope with rising energy costs
Matteo Salvini, the Deputy Prime Minister of Italy, said that Italy would unveil on Friday a package of measures worth approximately 3 billion euros (3.14 billion dollars) to assist families and businesses cope with high energy prices. The rising gas prices in Italy are a major headache to the government, as they could blunt the impact of the tax cuts that were introduced into its budget for 2025. These cuts were intended to boost the purchasing power of those with low and medium incomes. A representative of the Energy Ministry said that the cabinet will also adopt a draft law on Friday aimed at allowing nuclear power to be used again after it had been banned nearly 40 years earlier. Salvini stated in a radio broadcast that "we will set aside two billion euros for families, and another one billion for small- and medium-sized companies (SMEs)." Rome believes that the gas price will drop as summer approaches. Salvini said that he hoped a ceasefire would be reached between Russia and Ukraine in the next 3 months, which would provide some relief for energy markets. Donald Trump, the U.S. president, is calling for an end to the war which began three years ago when Russia invaded Ukraine. This has led to a rise in global energy prices. According to LSEG, the benchmark front-month contract for the Dutch TTF Hub was up 2.6 Euros at 44 euros per Megawatt Hour (MWh) by 1027 GMT Thursday. Italy, which is heavily indebted, has committed to bringing its budget deficit under the European Union ceiling of 3% GDP in 2026. It was previously set at 3.8% in 2024. This leaves it with limited flexibility to support the economy. PRESSURE Officials have stated that although the government was prepared to adopt the package of aid on Monday, Prime Minister Giorgia Mello delayed her decision. She believed the measures proposed by the ministries of economy and energy were too many and not effective enough, according to officials. Meloni pressed her top aides to ensure that a significant portion of Friday's resources would benefit families. The legislation on nuclear energy is part of a larger plan to build small modules reactors that the government has said could decarbonise Italy’s most polluting industry, including steel making, glassmaking, and tilemaking. The government of Italy is currently drafting regulations to lift the nuclear-fired power plant ban, which was imposed in 1987 and 2011. Adolfo Urso, the Industry Minister Adolfo, said that Enel Ansaldo Leonardo are close to forming a company which will study solutions for building nuclear reactors in Italy. Italy has also been in contact with a number of companies, including the U.S. Energy Group Westinghouse as well as France's EDF.
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Scientists predict a major earthquake in Chile's mineral rich north
On February 27, 15 years ago, a powerful 8.8 magnitude earthquake struck the southern Chilean coast near Concepcion. The quake shook the ground for 4 minutes and unleashed a tsunami which left 550 people dead. The quake was the most deadly natural disaster to strike the country since 1960's 9.5-magnitude tremor, which was the strongest recorded ever in the world. Scientists are predicting a large earthquake to strike the mineral-rich northern part of the country. Chile is the second largest lithium and copper producer in the world. All of Chile's lithium and its largest copper mines can be found in the country's north. Every 10 years, there is a major event, said Felipe Leyton a seismologist from the University of Chile. He added that fault lines in certain areas of Chile cause a great deal of stress. This allows you to see the potential of a large earthquake, which lets us say that in the short-term, in terms of seismic and geological terms we are expecting a major earthquake in northern part. The Andes mountains run along the western border of Chile. It is a long, skinny country that stretches 4,300 km (2672 miles). Chile is situated on the seismically-active Ring of Fire, which surrounds the Pacific Ocean. The mountains and earthquakes of Chile are the result of the collision of the Nazca tectonic plate and the South American tectonic plate along Chile's length. Dr. Mohama Ayaz is a geospatial and geologist at the University of Santiago in Chile. He says that GPS technology allows scientists to monitor plate movements for any variations and anticipate potential seismic events. Ayaz stated, "We can't predict exactly when they will happen but we can prepare for them." Earthquakes are the result built-up tension and this stress depends on how long it has been since the last seismic event. Ayaz pointed out that there have not been large releases in the northern part of the nation like there were in the southern portion of the country in 2010 Ayaz stated, "We can't predict when an earthquake will occur in the North, but we are prepared to wait." (Reporting and writing by Rodrigo Gutierrez, Alexander Villegas, Editing by Sandra Maler).
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Ontario, Canada's largest province, holds elections and US tariffs are in the spotlight
Ontario, Canada's largest province, will vote on Thursday. The incumbent premier is using tariff threats from the United States to increase his majority. Doug Ford, leader of the Progressive Conservative Party, called for an election over a year ahead of schedule. He argued that he needed a strong mandate to combat President Donald Trump's tariffs. Ford, 60, had already secured a majority in the provincial legislature. After sweeping victories both in 2018 and 2022, he is now seeking a third consecutive mandate with a majority. Trump has threatened to impose 25% tariffs on all goods imported from Canada and Mexico. Ontario, which is home to 35% of Canada’s 40 million residents, is Canada’s manufacturing hub and would be severely affected if Trump imposes tariffs. The province is among the largest sub-sovereign lenders in the world. Trump said that he would also use economic force to turn Canada into the 51st State. Ford, his opponents Marit Stiles, the left-leaning leader of the New Democratic Party, and Bonnie Crombie (the centrist Liberal leader) have all been vocal about their opposition to tariffs as well as Canada's annexation. Trump dominates Canadian politics on both the provincial and national level. This year, a federal election is expected. Ontario struggles to provide adequate healthcare for its residents. Around 2.5 million Ontarians do not have a primary healthcare provider. This is up from 1.8 millions in 2020. Ford was criticized for claiming that people go to emergency rooms with sore throats or scraped knees. His opponents claim that people might not be able get medical care elsewhere. Ontario, along with other parts of Canada is experiencing a housing affordability crunch and has fallen behind in its housing goals. Ford has worn a hat that says "Canada is not For Sale" and made two trips in Washington, D.C., to argue against U.S. Tariffs during the campaign. Ford was criticized for his trip to Washington, D.C. during the election campaign. During this time, governments are generally in caretaker mode. Laura Stephenson, Western University's professor of politics, explained that Ford was betting on winning another majority. She added that it could pay off. CTV News/Nanos' poll of 900 Ontarians, released on the 26th of February, found that the Progressive Conservatives were in the lead with 45.7%. This was a 14 point advantage over the Liberals. Ontario is not used to holding elections in the winter, and many parts of the province are still recovering from recent storms. (Reporting and editing by Rod Nickel; Anna Mehler Paperny)
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Sources say HSBC is cutting the number of staff at China Pinnacle by 900.
Two sources claim that HSBC has reduced the number of employees at Pinnacle, its China digital wealth unit, by almost half or 900 people. This is a dramatic reversal from the bank's original plans for the unit, as part of their expansion plans in the country. Pinnacle, launched in 2020, sells fund and insurance products via a digital platform. According to calculations based off of company disclosures and official business records, it employed around 2,100 people in two of its major units at the end of last June. This reversal highlights the challenges that the Asia-focused banks face to boost profitability and growth in China, at a moment when they are cutting costs to increase returns. In October, it was reported that Pinnacle, Europe's biggest lender based on assets had started investigating staff compensation structures earlier in the year to see if suppliers were inflating expenses. This led to a dramatic increase in costs which outpaced Pinnacle's revenue. Two sources who are directly involved in the matter, but refused to identify themselves due to its sensitivity, confirmed that the staff reductions include layoffs, attrition, and transfers to different units within the bank group. Georges Elhedery has been appointed as the new CEO of the London-based bank. He has begun a massive restructuring, which includes job cuts. The aim is to cut costs over time and increase profits. Sources claim that Pinnacle has lost more than 500 insurance agents in the last seven months. This is a significant drop from the 1,700 insurance agents who left in June. The reason for this, they said, was because its insurance brokerage unit ceased renewing contracts following the review. They added that the banking group would soon begin laying off 100 employees at its Pinnacle fintech division, while another 300 will be transferred to other businesses, including the retail bank. This leaves only a handful of staff in the 400-person unit. Sources said that final discussion will be held on the numbers. HSBC did not directly comment on the changes in staff. The bank, which earns the majority of its revenues in Asia, counts China as a key market. It said that the bank's long-term commitment to mainland China, as a market of priority, has not changed. A bank spokesperson stated that the bank will continue to invest globally in private banking, asset management, and insurance in the mainland China markets. In 2024, the bank's wealth invested assets on the mainland China market increased by 61% compared to a year ago. CHINA AMBITION HSBC's abrupt withdrawal from China digital wealth is at odds with its commitment of doubling down on wealth management and Asia in particular, after exiting from certain sub-scale markets. Greater China, including Hong Kong and Taiwan is the largest income generator for the group. Elhedery stated last week that he was interested in investing more money to boost the bank's wealth business, particularly in Asia. Pinnacle, which is part of HSBC’s wealth and personal bank, has not yet achieved profitability in China. The unit's China losses dropped from $90m to $46m in the first half 2024. Pinnacle was part of HSBC’s commitment to invest $6 billion in Asia by 2021. Its digital focus allowed it to reach beyond its physical branches in China. The bank initially aimed to employ 3,000 wealth managers by 2025 in China. The reversal of HSBC's digital-wealth business ambitions in China also highlights the challenges that foreign financial institutions in China face. After the business failed to take off, U.S. Fund Manager Vanguard had to terminate the partnership in 2023 and leave the market. (Reporting from Hong Kong by Selena Li, with additional reporting from Engen Tham, in Shanghai, and editing by Sumeet Chatterjeet, Stephen Coates, and Neil Fullick.)
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Cyprus Energy Minister: UAE's TAQA may invest in an electricity project
George Papanastasiou said that the Cyprus Energy Minister is interested in a project to connect international electricity. The Great Sea Interconnector cable (GSI) will connect transmission networks in Europe with Cyprus, a project worth 1.9 billion euro ($2.12 billion), then extend to Israel. Papanastasiou, speaking in the capital of the United Arab Emirates, also stated that the Abu Dhabi National Oil Company could invest in an Exclusive Economic Zone (EEZ), referring a sea zone where Cyprus has rights to commercial activities. They are looking for assets that are ready to be deployed. We haven't ruled out the possibility of a new round of licensing to expand into exploration," said the minister on the sidelines Investopia. The minister confirmed in November that ADNOC had been in discussions to invest in Cyprus’s new natural gas sector. Reporting by Federico Maccioni, Abinaya VIjayaraghavan and Tala Ramadan; Writing by Tala RAMADEN Editing by Tomasz JANowski and Rachna UPAL
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Sources say HSBC is cutting the number of staff at China Pinnacle by 900.
Two sources claim that HSBC has reduced the number of employees at Pinnacle, its China digital wealth unit, by almost half or 900 people. This is a dramatic reversal from the bank's original plans for the unit, as part of their expansion plans in the country. Pinnacle, launched in 2020, sells fund and insurance products via a digital platform. According to calculations based off of company disclosures and official business records, it employed around 2,100 people in two of its major units at the end of last June. This reversal highlights the challenges that the Asia-focused banks face to boost profitability and growth in China, at a moment when they are cutting costs to increase returns. In October, it was reported that Pinnacle, Europe's biggest lender by assets in the previous year began investigating staff compensation structures. It also investigated whether suppliers had inflated expenses. This led to a dramatic increase in costs which outpaced Pinnacle's revenue. Two sources who are directly involved in the matter, but refused to identify themselves due to its sensitivity, confirmed that the staff reductions include layoffs, attrition, and transfers to different units within the bank group. Georges Elhedery has been appointed as the new CEO of the London-based bank. He has begun a massive restructuring, which includes job cuts. The aim is to cut costs over time and increase profits. Sources claim that Pinnacle has lost more than 500 insurance agents in the last seven months. This is a significant drop from the 1,700 insurance agents who left in June. The reason for this, they said, was because its insurance brokerage unit ceased renewing contracts following the launch of a review. They added that the banking group would soon begin laying off 100 employees at its Pinnacle fintech division, while another 300 will be transferred to other businesses, including the retail bank. This leaves only a handful of staff in the 400-person unit. Sources said that final discussion will be held on the numbers. HSBC did not directly comment on the changes in staff. The bank, which earns the majority of its revenues in Asia, counts China as a key market. It said that the bank's long-term commitment to mainland China, as a market of priority, has not changed. A spokesperson for the bank said that it will continue to invest globally in private banking, asset management, and insurance in mainland China. Pinnacle was part of HSBC’s commitment to invest $6 billion in Asia by 2021. Its digital focus allowed it to reach beyond its physical branches in China. The bank initially aimed to employ 3,000 wealth managers by 2025 in China. The reversal of HSBC's digital-wealth business ambitions in China highlights the challenges that foreign financial institutions in China face. After the business failed to take off, U.S. Fund Manager Vanguard had to terminate the partnership in 2023 and leave the market. (Reporting from Hong Kong by Selena Li, with additional reporting from Engen Tham in Shanghai. Editing by Sumeet Chatterjee & Stephen Coates).
Gold falls on the dollar's strength and rising Treasury yields. US PCE data is in focus
Gold prices fell on Thursday as a result of a stronger dollar and higher Treasury yields. Investors were also awaiting a crucial inflation report in order to determine the Federal Reserve’s policy direction.
Spot gold dropped 0.6% to $2.897.91 per ounce at 0645 GMT.
U.S. Gold Futures also fell 0.7%, to $2.909.30.
The dollar index increased by 0.2%, moving further away from recent 11-week lows. This was after vague promises from U.S. president Donald Trump that he would impose tariffs against Europe and further delay levies for Canada and Mexico.
The yields on the benchmark 10-year U.S. Treasury note have rebounded. This has reduced the appeal of gold, which does not offer any returns.
Ilya Spirak, global macro head at Tastylive said that a slight increase in the dollar, and the yields on U.S. Treasury bonds, are seen as having a little impact on gold in this session. The overall trend for gold remains largely intact.
Later in the day, several Fed officials will speak to provide more insight into the central banks policy of easing.
The Fed's preferred measure of inflation, the Personal Consumption Expenditures Index (PCE), is due Friday.
According to a poll, the consensus forecast for December 2024 was a PCE index of 0.3%.
"The markets are sensitive to growth concerns at the moment after dismal U.S. PMI data last week, and any stronger-than-expected PCE outcomes that point away from Fed rate cuts in the near term might hurt gold," Spivak added.
Bullion is a safe haven against inflation and political risks, but rising interest rates reduce its appeal.
In the meantime, Russian and U.S. diplomatic representatives will meet in Istanbul to discuss the restoration of their respective missions. This is seen as an important step toward restoring relations between both countries.
Ending the War
In Ukraine.
Spot silver fell by 0.2%, to $31.77 per ounce. Platinum dropped 0.1%, to $964.70. Palladium remained unchanged at $926.47.
(source: Reuters)