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Investors warn EU against data reductions in green rule review
The political drive to reduce EU sustainability regulations should not result in investors losing valuable information about material risks, or forcing them to rely on third party data providers more often. This was the message from Europe's leading asset management trade association on Friday. The European Commission is reviewing the planned rules for corporate disclosures, amid concerns that they are preventing European companies from competing against other regions. This is especially true in light of a tariff war driven by the United States. The Commission has proposed changes in February that will exempt thousands of smaller European companies from the rules and reduce the obligations on larger firms to monitor their supply chains and check for environmental and human rights problems. The European Fund Managers' Association, EFAMA said that it supported the Commission in its efforts to reduce regulatory burden, but warned against removing key information about sustainability risks, which could harm the EU's broader climate objectives. Ilia Békou, policy adviser at EFAMA said that simplifying disclosure requirements can help EU competitiveness, by promoting innovation and growth in key technological areas across the EU's economy. EFAMA's proposal stated that it was preparing a list of data points which companies could report. It estimated this would reduce the reporting requirements by 80%. This could be supplemented with additional voluntary disclosures. The report also cautioned against reducing too much the number of green companies that are covered by the regulation, as this could make it more difficult for European investors and businesses to invest in smaller green enterprises. Another suggestion is to ensure that the changes are in line with an upcoming review of sustainability reporting for asset managers. (Reporting and editing by Simon Jessop, Susan Fenton and Virginia Furness)
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China's Tsingshan has not given up on Chile's lithium plans, despite the plant's retreat
Tsingshan, a Chinese metals company, said it was still interested in investing in Chile's lithium downstream sector on Friday. This follows reports that the group had abandoned plans to build a lithium cathode factory in Chile. This week, it was reported that Tsingshan (a Chinese automaker) and BYD (a Chinese automaker) had withdrawn from plans to build large lithium cathode factories in Chile. The report cited the Chilean economic development agency as well as Tsingshan. The two Chinese giants' retreat was a blow for Chile in its efforts to increase domestic processing of lithium - a metal that is essential to electric vehicle batteries. Chile is the No. The world's No. 2 lithium producer is Chile. Tsingshan's Friday statement referred to the plans it had for a Chile cathode factory in the past, but did not say that they were scrapped. The company said that it valued Chile's investment climate and was not going to miss the chance to explore ways to add value to Chile's lithium. China's Embassy said in a post on social media Thursday that Tsingshan & BYD had never stated they would stop investing in Chile and they will "continue the dialogue" with Chilean officials. The report also mentioned a "close friendship" between the two nations. Tsingshan had previously stated that it had withdrawn plans for a cathode-plant. BYD didn't immediately respond to an inquiry for comment. Corfo, Chile's investment agency, said on Wednesday in a press release that Tsingshan had withdrawn their plans through its subsidiary Yongqing and that BYD had rejected in January an offer of land it had selected previously for the project. (Reporting and editing by Daina-Beth Solomon and Kylie Madry, Anthony Esposito, Richard Chang and Aida Pelaez Fernandez)
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Congo gold miner suspends operations over tax dispute with M23 rebel administration
Twangiza Mining is a gold mining company operating in the rebel controlled South Kivu Province of eastern Democratic Republic of Congo. According to a letter sent to the entire company, the rebel administration has ordered the suspension of operations. In a letter dated 8 May, the company, managed by Hong Kong registered Shomka Resources informed its employees that they would be forced to stop work immediately. Twangiza Mining has been ordered to suspend operations by the South Kivu Province administration, according to a letter signed by Chao Xianfeng, the General Director. The letter also stated that all equipment and vehicles had been placed in standby mode. The decision highlights tensions regarding resource control in Congo’s mineral-rich east regions where M23 rebels have advanced and placed strategic mining assets into a new administration. This has created uncertainty for international operators as well as commodity markets. Rwanda-backed rebels have taken control of Congo's mineral-rich eastern provinces in the first half of this year and are now consolidating their control. Manu Birato who recently became the M23 Governor of South Kivu Province said Twangiza Mining has to adapt to new rules and pay taxes that they had not been paying. Birato said, "We're in discussions with them to show them that they have to start paying taxes now." The country received no taxes at all from this company. He said that the money was transferred to private accounts. The administration did not order the closure of the operations. "We told them they would have to pay taxes." Birato explained that the people are struggling to adjust to this new requirement because they have been used to not paying taxes. Birato's claims were not addressed by a spokesperson from Twangiza. Twangiza Mining, a joint venture, is owned by Congolese Shomka Capital, with 65.5% of the shares, and Baiyin International Investments Ltd., with 34.5%. (Reporting and writing by Yassin Kobi; Editing by Bill Berkrot).
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UK steel industry wants clarity on timeline for US 0% tariffs
The British steel industry demanded clarity on Friday regarding the date when U.S. Tariffs will be removed under a historic first agreement to remove President Donald Trump’s levies against the sector. Britain announced a deal on Thursday with the United States that would lower steel tariffs from 25% to 0%, allowing British producers to continue exporting to the United States. Details released late Thursday revealed that both sides still have to formalise security requirements and quotas for the steel industry, which leaves sector representatives unsure of when levies are going to be implemented. Chrysa glystra, Director of Trade and Economic Policy for industry body UK Steel, said: "It is not just a formality. There are still many things that haven't yet been determined and defined." Glystra said that companies did not know what conditions they had to meet in their supply chains to be eligible for the tariffs. We don't know when it will go into effect or what the timeline will be. The steel industry in Britain contributed £1.7 billion, or 0.1%, to the UK's economy in 2024. Its future has been a little uncertain. Last month, the UK government intervened in order to maintain the blast furnaces at the UK's final producer of virgin steel by seizing control from the Chinese owners. The British government released details of the U.S. agreement. It showed that the access to zero tariffs was conditional on Britain's commitment to "work quickly to meet U.S. demands on the security supply chains of steel products and aluminium intended for export into the United States, and on the ownership of relevant production plants." The General Terms of the Agreement stated that "understanding the United Kingdom would meet these requirements, United States will quickly construct a quote." The Office of the United States Trade Representative stated that the U.S., UK and Canada "will negotiate a different arrangement" regarding the steel tariff. The British trade ministry refused to provide a timeline for the formalisation of the steel deal. Glystra, from UK Steel, said that the ongoing engagement between UK Steel and the British government has been constructive. She said, "The fact we have now a better foundation than before is positive." It's not as good as if you told us that there are no tariffs on steel as of today. That would be better." (Reporting and editing by Toby Chopra; Alistair Smout)
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Brazil's Lula criticizes Trump tariffs during a meeting with Putin
Brazilian President Luiz Inacio Lula da Silva, who met with Russian counterpart Vladimir Putin on Friday in Moscow, criticized the U.S. president Donald Trump's policies regarding trade and tariffs. He said that they were harmful to multilateralism. Lula is visiting Russia to celebrate the 80th anniversary since the Soviet Union defeated Nazi Germany during World War Two. Russia celebrated this milestone on Friday. Major Military Parade Also in attendance was Chinese President Xi Jinping. "The recent decisions of the U.S. President to unilaterally impose tariffs on all trade with countries around the world undermines the great idea? "Free trade and strengthening multilateralism" was Lula's message during a bilateral discussion with Putin. Leftist leader says he wants to boost Brazil's strategic relationship with Russia. He cites "political and commercial interests, as well as cultural, scientific, and technological ones" in order to increase trade. Lula also mentioned that he would be interested in working with Russia to build small nuclear power plants. Brazil and Russia were both founding members of BRICS, a group of emerging economies that includes India, China and South Africa, as well as the newest additions, Egypt, Saudi Arabia and the United Arab Emirates. Ethiopia, Indonesia, and Iran are also part of this group. (Reporting and writing by Isabel Teles, with additional reporting by Lisandra paraguassu. Editing by Mark Heinrich.
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Venture Global's CP2 project is recommended for approval by US regulators
According to a document filed by the government on Friday, U.S. federal regulatory agencies recommended that Venture Global's proposed CP2 liquefied gas export project be approved. If built, CP2 would be the largest LNG export facility to ever exist in the United States and will help the U.S. remain the largest LNG exporter in the world. Venture Global had already received approval for the construction of the 28 million tonnes/annum plant. However, a recent court ruling forced them to perform an additional air quality review. Documents from the Federal Energy Regulatory Commission show that the study concluded the project could continue. This additional review was prompted by a decision of the U.S. Court of Appeals, District of Columbia Circuit in August 2024 that quashed FERC's approval of NextDecade LNG exporter NextDecade at the Port of Brownsville. The court ordered FERC also to re-examine the ramifications associated with the CP2 Project. CP2 is at the heart of a battle between the energy industry and environmentalists who want to limit future LNG project on the U.S. Gulf Coast.
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Thermax, an Indian industrial machine manufacturer, misses its profit forecasts due to weak demand
Thermax, an Indian industrial machine manufacturer, reported a fourth-quarter profit that was below expectations Friday. This was due to a weaker demand for its machines and increased raw material costs. In recent quarters, capital goods companies that rely heavily on government orders have seen their inflows slow down. Analysts report that government capex was subdued in most segments during the quarter under review. Thermax’s order book dropped by 8%, to 21,19 billion rupees. A spike in raw material costs increased the company’s expenses by 11%. The net profit of the industrial machine manufacturer rose by 8%, to 2,066 billion rupees (US$24 million), in the quarter ending March 31. It was 1.9 billion rupees last year. LSEG data shows that analysts had predicted a profit of 2,08 billion rupees. Thermax revenue for the quarter ended March grew by about 12%, to 30,85 billion rupees. This was below analyst expectations of 31,22 billion rupees. Thermax’s industrial products division saw a revenue increase of 18.5% while the division that installs bio-CNG power plants and other energy sources grew by 4%. In a press release, the company said that 660 million rupees of costs related to its bio-CNG project had affected the quarterly results. Peer ABB India announced higher profits for the first quarter on Friday, citing steady demand for its products. Reporting by Aleef Jhan in Bengaluru, editing by Sahal Muhammad.
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Spain's LNG imports to the US are on the rise, representing 35% of total gas supply
Data released on Friday showed that imports of US LNG accounted for 35% of Spain’s total gas imports during the first four month of this year, up from just under 20% one year earlier. Meanwhile, imports of Russian Liquefied Natural Gas (LNG) declined. Since the Russian invasion of Ukraine, Europe has imported more superchilled gas from the U.S. According to Enagas, the Spanish gas grid operator, in the first four month of this year, Spain imported 45,932 GWh of gas equivalent from the U.S. This compares with 24,885GWh one year ago. The U.S. is now the primary gas supplier for Spain. This replaces Algeria, which primarily supplies liquefied natural gas to Spain and pumps it directly through pipelines. Enagas reported that the overall Spanish gas demand fell by 3%. The U.S. gas liquefied also replaced the gas liquefied sent from Russia. In the first four month of this year, the share of Russian gas in Spain's total gas imports fell from 22.4% to 13.3%. (Reporting and editing by Inti landauro, Louise Heavens and Joao Manuel Mauicio from Gdansk)
Trump announces auto tariffs ahead of the 'Liberation Day Trade Announcement'
As President Barack Obama announced on Wednesday, the U.S. Government will impose a 25% duty on imports of automobiles and auto parts on April 3, as well as a similar tariff on auto components a month after.
Donald Trump
Prepare to Announce Further
trade barriers
This could lead to a global trade war, and even cause the economy to collapse.
Trump's "Liberation Day announcement" is expected to undo existing trade agreements that date back to 1947, and will lead to countermeasures by close U.S. ally countries.
Trump has been keeping the world guessing about the details of the White House Rose Garden ceremony, scheduled to take place at 4 p.m. Eastern Time (2000 GMT).
Persons familiar with the deliberations of the administration said that the tariffs would be substantial and affect a large number of countries including close allies.
One source claimed that Trump could remove the exemption of $800 for "de minimis" shipments to China.
The new tariffs will be implemented immediately after Trump's announcement, even though the administration hasn't yet published an official notification as required.
The administration did, however, publish an official notification that a separate tariff set on
auto imports
What Trump announced last Thursday will come into effect.
"IT'S LIBERATION Day in America!" Trump posted a message on his social media platform.
Trump, who called tariffs the "most beautiful words in the dictionary," said that his plans for reciprocity would equalize U.S. tariffs with those charged by other countries at higher rates and counter their non-tariff obstacles which he claims disadvantage U.S. Exports.
Peter Navarro, Trump's adviser on trade, said that the auto tariffs will return strategic manufacturing capabilities to the United States. "This isn't protectionism. He wrote, "It's restoration", in USA Today.
Doug Ford, Premier of Ontario in Canada, said that he wasn't sure if Trump officials understood U.S. Auto Industry supply chain system which is closely linked to other countries. He said, "This is the ridiculous thing I've ever seen" on CNBC.
The warnings of outside economists that tariffs may slow down the global economy and raise the risk for recession have led to the increase of living costs by thousands of dollars for the average American family. Businesses complain that Trump's threats have made it hard to plan their operations.
Steve Sosnick is the chief strategist of Interactive Brokers. He said, "I have never seen a situation with stakes this high but the outcome so unpredictable." The devil will be in the detail and nobody knows what the details are.
Business leaders across sectors, including automobiles, ocean freight shipping, luxury products, and more, waited to find out what was going to happen.
Peter Sand, the chief analyst of freight pricing platform Xeneta, said: "You can't make important decisions about your supply chain if the rules keep changing." France was expecting a "pretty strong" hit, which could result in tariffs between 20-25%.
STACKING THE TARIFFS In less than 10 weeks after taking office, Trump imposed new duties of 20% on all imports coming from China, and restored the 25% duty on steel and aluminium, which now extends to downstream products worth nearly $150 billion.
The administration announced on Wednesday that this would include all beer imports and empty aluminum cans.
On Wednesday, the one-month reprieve from 25% tariffs on most Canadian and Mexican products is set to expire.
Officials in the Trump administration have stated that Trump's tariffs are stacked on top of previous rates. For example, a Mexican car that was previously subject to a 2.5% tariff to enter the U.S., would now be subject to the fentanyl and auto sectoral tariffs for a total tariff rate of 52.5% -- plus any reciprocal duty Trump may impose against Mexican goods.
The uncertainty surrounding duties is impacting consumer, investor and business confidence. On Wednesday, global stocks fell while gold, a safe haven asset, held near record levels.
Since February, U.S. stock prices have lost nearly $5 trillion in value.
Dollar and other currencies remained in tight ranges as traders awaited the details of Trump's plan. The fear of tariffs has already affected manufacturing across the world, and also boosted sales of imported autos and products.
RETALIATORY MEASURES A number of trading partners, including Australia, Europe, Canada, and Mexico, have pledged to respond to the US with retaliatory duties and countermeasures. Some have even sought to negotiate directly with the White House.
Trump has claimed that American workers, manufacturers and businesses have suffered for decades from free-trade agreements that have lowered global barriers and increased the U.S. market of imported goods by $3 trillion. This led to a goods deficit exceeding $1.2 trillion.
According to the Yale University Budget Lab, a 20% additional tariff would cost an average U.S. family at least $3400.
(source: Reuters)