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US Treasury confirms that the Russian Energy Financing License has expired
The U.S. Treasury confirmed on Thursday that the license for a winding down of energy transactions between Russian financial institutions and American companies expired this week as planned under strict sanctions imposed during Joe Biden's final days in office. A Treasury spokesperson confirmed that General License 8L expires at 12:01 am EDT on the morning of Wednesday. The Biden administration issued the license on 10 January to clear any remaining transactions, as it had banned energy financing deals between Russian banks including Sberbank and VTB, along with the Central Bank of the Russian Federation. The Biden administration imposed the most severe sanctions on Russia for its oil and gas revenues in response to its invasion of Ukraine. This was done in an attempt to strengthen Ukraine's position during any future peace talks. The sanctions also prohibited dollar transactions with Russian energy companies Gazprom Neft, Surneftegas and 183 vessels which have shipped Russian crude oil. Many of these vessels are part of the shadow fleet - a grouping that includes aging tankers owned by non-Western firms. Scott Bessent, U.S. Treasury secretary, has criticised Biden's sanctions against Russia for being ineffective as they were preoccupied with maintaining low oil prices. In an email, the Treasury spokesperson stated that the Trump administration is "focused on ending the fight and encouraging negotiations to end war." "We will continue to implement sanctions which are one of the levers that facilitate these goals." (Reporting and editing by Leslie Adler, Diane Craft and David Lawder)
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Fuel shortage threatens Bolivia's soy harvest, causing farmers to panic
In Bolivia's Santa Cruz farm region, an increasing fuel shortage has begun to affect farmers' abilities to harvest their crops. This is a cause for concern in the country, which is struggling economically and where agriculture plays a major role. Fuel shortages, which have led to long queues at the pumps, are the result of a decline in foreign currency reserves during the past decade, and a local gas production that has reached crisis levels. The government of President Luis Arce is concerned about the situation, and has tried to limit prices by using subsidies. Joel Eizaguirre is a soybean farmer in Santa Cruz, the main farming belt of the nation. We'll be left with producers that will make different choices. It's going affect everyone. Jaime Fernando Hernandez of the oilseed and grain group ANAPO said that if diesel was not available for farm machinery and tractors then a lot of food – including corn, soy and sorghum – could be lost. This would have a ripple effect on the entire food chain, affecting production of chicken, eggs, milk, and livestock. He said that the impact on productivity and food production would be "truly catastrophic". Bolivian government is under increasing pressure because of the fuel and dollar crisis. They have decided to use cryptocurrency for payment and fuel cargoes. The farmer Eizaguirre stated that he would rather pay more to have fuel than not enough. He was referring to a parallel exchange rate of more than 11 bolivianos to the dollar, as opposed to 6.86 at an official controlled rate due to the shortage of hard currency. He said: "I personally would rather pay 11 bolivianos for fuel than not have enough to harvest our grains or be able plant during the approaching winter." Reporting by Santiago Limachi in Santa Cruz de la Sierra and Monica Machicao Editing by Adam Jourdan & Matthew Lewis
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Tariff angst is overshadowing soft inflation as stocks fall sharply and bond prices rise
On Thursday, global equities fell and U.S. Treasury yields also did. This was due to concerns about global trade tensions as well as the impact of inflation and economic growth. Trump warned that the EU would not be able to remove the whiskey surcharges imposed by the United States if it did not do so. The increased tariffs were imposed on Wednesday after Trump's new tariffs on steel and aluminum imports from the United States. The Bureau of Labor Statistics, the Labor Department's Bureau of Labor Statistics, released data on Thursday that showed U.S. Producer prices (PPI), which were expected to rise faster than consumer prices (CPI), actually remained unchanged in February. Tim Ghriskey is a senior portfolio strategist with Ingalls & Snyder, New York. He said that if it weren't for the ongoing trade war, the market would have been up strongly on the inflation data. "Traders have their attention on the trade conflict." Ghriskey said, "It appears that the administration (in the U.S.) is very aggressive. They seem to be committed to the long-term and personalities are unlikely to change their minds in the near future." Bill Adams, Chief economist at Comerica Bank, wrote in a note of research that the outlook for inflation depends more on government policy such as tariffs and deportations, or Department of Government Efficiency (DOGE), than "the data released right now which is looking backwards." At 02:47 pm on Wall Street, the Dow Jones Industrial Average dropped 399.18 or 0.97% to 40,951.75. S&P 500 dropped 51.21 points or 0.91% to 5,548.09, while Nasdaq Composite declined 231.66 points or 1.31% to 17,416.75. The MSCI index of global stocks fell by 6.69 points or 0.81% to 824.16. The pan-European STOXX 600 Index closed earlier down 0.15%, after rising by 0.81% the previous session. The U.S. S&P 500 is down nearly 6% this year. However, European stocks have done better thanks to government plans for defense spending and a possible peace agreement with Ukraine. The STOXX Index is up 6.5% for the year, despite recent drops. U.S. Treasury Yields fell on Friday as falling stocks boosted demand to buy safe haven U.S. Government debt. Trade wars between the United States, and its trading partners are escalating and threatening growth and inflation. The yield on the benchmark U.S. 10 year notes dropped 3.6 basis points from 4,316% at late Wednesday to 4.28%. The 30-year bond rate fell by 2.9 basis points, from 4.631% to 4.6016% late on Wednesday. The yield on the 2-year bond, which is usually in line with expectations of interest rates for the Federal Reserve (Federal Reserve), fell by 4.2 basis points, to 3.953% from 3.995% at late Wednesday. The U.S. Dollar was mixed in terms of currencies. It weakened against the safe-haven Japanese yen, but gained on the Euro and Canadian dollar. The euro fell 0.28% against the dollar to $1.0855, but the dollar dropped 0.34% against the Japanese yen to 147.74. The Canadian dollar fell 0.39% against the dollar to C$1.44 each. The pound fell 0.06% to 1.2952. Oil prices fell on Thursday after rallying on Wednesday due to a bigger-than-expected withdrawal of gasoline from U.S. stocks. Traders weighed macroeconomic worries and demand versus expectation. U.S. crude oil settled at $66.55 per barrel down $1.13 or 1.67% and Brent settled at $69,88 per barrel down 1.51% or $0.07 for the day. Gold prices soared to record levels on Thursday and were just a few cents away from the $3,000 mark per ounce. The momentum was driven by increased tariff uncertainty as well as bets placed on the Federal Reserve's easing of monetary policy. Spot gold increased 1.71% to 2,981.92 dollars an ounce. U.S. Gold Futures increased by 1.51% to $2.983.50 per ounce.
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The GM CEO and Trump met on Wednesday amid the tariff war -- White House
A White House official said that President Donald Trump and General Motors CEO Mary Barra met on Wednesday to discuss the automaker’s investment plans in light of an ongoing tariff battle. After a phone call with Barra and Ford CEO Jim Farley, as well as Stellantis Chair John Elkann, Trump agreed last week to exempt automakers for a month from his 25% tariffs against Canada and Mexico, as long as the comply with free trade rules. Trump said to reporters that GM visited him on Wednesday and "want to invest $60 billion". GM has not yet commented on the meeting. It is unclear when any new expenditures will occur. The White House has been told by automakers that they need to be certain about the tariffs and vehicle emission policies before they make any significant changes in their North American investment plans. Trump imposed hefty tariffs this week on steel and aluminium, impacting products ranging from bulldozers to cars. As exemptions, exclusions, and quotas expired, the metals tariffs increased to an effective 25% increase. The American Automotive Policy Council (AAPC), a group that represents the Detroit Three automakers noted that domestic automakers purchased the majority of their aluminum and steel in North America or the United States, but expressed concern about "specifically revoking the exemptions for Canada" and "Mexico". Stellantis said to its dealers that it was willing to work with Trump to "support further investment in our U.S. Manufacturing footprint, but we need to give ourselves time to make the changes without negatively affecting our business or our customers." Trump also threatens new reciprocal tariffs for April 2, which could dramatically increase the cost of imported vehicles from Japan, South Korea and Europe. In meetings, Trump and Commerce Secretary Howard Lutnick told automakers that they wanted the industry to shift more assembly and part production to the United States.
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Shares jump as Panama reviews First Quantum mine closure
He told reporters that next week, Panama's president Jose Raul Mulino would begin an investigation into a closed copper mine owned by Canada's First Quantum Minerals. Mulino also ordered the restarting of a power station needed to run a port nearby. The port was used to export mine production. First Quantum was ordered by the predecessor of Mulino to close the open-pit copper mine in 2023 after protests. This led to concerns about the maintenance of Cobre Panama and the 120,000 metric tones of copper concentrate that were stockpiled. First Quantum's shares rose by more than 8% after Mulino made his comments. The mine, which accounted for 1% global copper production, was among the top in the world before it was closed. Mulino said that he has authorized the removal of stranded products of copper from the mine. He argues that it is "wasted", and that Panama will need to be reimbursed after it is processed out-of-country. He said that the power plant will be activated to facilitate exports out of the port at a press conference held every week. Mulino was talking about the Punta Rincon Port, which is located approximately 17 miles (27km) north of mine. The president said that he will review the future of mine in greater detail as early as next week. Mulino stated, "The mine issue will be handled with great care and always keeping in mind the national interest." "We will start next week." First Quantum issued a statement after Mulino's speech expressing satisfaction at the president’s decision to restart power plant, as well as with his comments regarding exports. The statement said, "We welcome President Obama's statements... about the export authorizations for copper concentrate." Reporting by Elida Mehro and Divyarajagopal, Additional reporting by Aida Pelaez-Fernandez, Writing by Daina Elizabeth Solomon; Editing David Alire Garcia
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US Farmers Sue Trump Administration for Withheld IRA Funds
On Thursday, several U.S. nonprofits and farmers filed a suit against the Trump Administration, alleging that it illegally holds back Department of Agriculture grants financed by the Inflation Reduction Act. The USDA has frozen a wide range of grants while it conducts a review of agency spending, including money for farm programs and conservation funded by IRA. Five farmers who were involved in this lawsuit received grants for solar panel installation from the USDA Rural Energy for America Program. Grants were given to the three non-profits involved by the Forest Service. According to the complaint, farmers have contracted with solar installers for which they have incurred costs that may not be recoverable in the event the grants remain frozen. It says that the freeze has forced nonprofits to lay off or furlough staff, or reduce programs. This is not efficiency in government. This is a wasteful expenditure that causes unwarranted financial hardship to small farmers and groups trying to improve the communities in which they live. The USDA didn't immediately respond to our request for a comment. Agriculture Secretary Brooke Rollins said that the agency was beginning to release IRA grants to the farmers. However, the agency did not provide details on how much money had been released or the timetable.
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Canada files a dispute complaint with the WTO over US steel and aluminium tariffs
The trade body announced on Thursday that Canada had requested WTO consultations over the U.S.'s imposition of duties on certain Canadian steel and aluminum products. It said that the request was sent to members of the World Trade Organization on Thursday. The WTO stated that Canada claims the measures which ended Canada's exemptions from additional duties on certain steel and aluminum products and increased duties on aluminium items and took effect on March 23 are in conflict with U.S. commitments under the General Agreement on Tariffs and Trade 1994 (GATT). Donald Trump told reporters on Thursday in the Oval Office that he would not change his mind about tariffs. "We have been ripped of for years, and we won't be ripped-off anymore." "I'm not going bend anything, whether it be aluminium, steel or cars," said he. This move comes after Canada requested on 5 March that the United States consult with it following Trump's new 25% duties on imports from Canada, Mexico and China. Trump declared that the three largest U.S. trading partner failed to do enough in order to stop the flow of fentanyl, and its precursor chemicals, into the United States. (Reporting and additional reporting by Olivia Le Poidevin, editing by Thomas Seythal. Editing by Angus MacSwan).
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Mexico's Ebrard claims that the government is engaged in 'intensive' discussions with US before tariff deadline
Mexico's Economy minister Marcelo Ebrard announced on Thursday that his government is in intensive discussions with the United States about Washington's threat to impose tariffs against goods imported from Mexico. Mexico's Economy Minister Marcelo Ebrard said on Thursday that his government was in intensive talks with the United States over Washington's threats to impose tariffs on goods from its No. The United States has threatened, implemented, and paused tariffs against Mexico. This is expected to have an impact on both economies which have been tightly integrated over the past three decades through free trade agreements. As the uncertainty surrounding the future of their trade relations grows due to President Donald Trump's constant changes in tariff policy, economists are warning of an increased recession risk for the United States. Ebrard, speaking at his regular morning press conference said that he hoped Mexico could reach the date of April 2, in "better" conditions than other countries affected by U.S. Tariffs. Trump granted Mexico and Canada a reprieve on March 6 from the 25% tariffs that were imposed two days prior. He stated that all goods in compliance with the USMCA pact, which is a trade agreement between the three nations, would be exempted from tariffs until the end of April. Ebrard called the recent United States implementation of a global steel and aluminum tariff "a bad idea". He added that the Mexican government would be holding meetings with this sector in order to protect the economy against the trade barriers. Ebrard stated that "many measures are possible, but we won't take them lightly." The Mexican president Claudia Sheinbaum has maintained a calm attitude in the face of the tariffs that have been imposed by the United States. She has stated that her government will not announce any retaliatory actions until after the United States has made its decision on April 2. Ebrard stated, "We will consult with the appropriate authorities and prepare to use our instruments in accordance with the best interests of Mexico." He stressed the importance of keeping a cool mind, saying that it had been a strategy which has so far worked for Mexico. (Reporting Ana Isabel Martinez and Sarah Morland, Editing by Susan Fenton).
China's demand for iron ore is resilient in the near term
Iron ore futures prices rebounded Thursday as a result of a wave short-covering, with China, the top consumer, remaining resilient in near-term demand. However, concerns about escalating tensions on trade limited the upside.
As of 0735 GMT, the benchmark April iron ore contracts on the Singapore Exchange rose 1.23% to $101.90 per metric ton.
The daytime trading price of the most traded May iron ore contract at China's Dalian Commodity Exchange was 0.45% higher, closing at 780 Yuan ($107.68).
"Prices are moving between $95 to $110 per ton, and whenever they drop below $100, we will see a quick rebound due to short-covering," said a Beijing iron ore trader, who requested anonymity because he was not authorized to speak to the media.
The short-term outlook for hot metal production is that it will continue to recover, so prices are unlikely to fall dramatically, but downward pressure on prices will increase in the second half, as more supply comes online.
Analysts at Hongyuan Futures stated in a report that hot metal production, which is typically used to gauge demand for iron ore, will increase in March, due to the attractive steel margins.
The mounting trade frictions with China over its cheap steel products continue to be a drag on the demand for steel and steelmaking materials.
The market's mood was dampened on Wednesday by the renewed talk of China's plans to reduce crude steel production to combat the industry-wide oversupply.
The National Development and Reform Commission of China, the state planner in China, did not reply to a request for comment.
Coking coal and coke, which are used to make steel, also advanced on the DCE. They both increased by 2.44% and respectively.
The benchmark steel prices on the Shanghai Futures Exchange have gained ground. Hot-rolled coil rose 1.7%, rebar climbed 1.21%, wire rod increased 1.02%, and stainless steel gained 0.59%.
(source: Reuters)