Latest News
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Britain provides $26 billion in export financing support amid tariff tension
The UK announced on Sunday that it would increase its financial support to exporters, including those who are affected by U.S. Tariffs by an additional 20 billion pounds (26 billion dollars), in order to provide them with stability and certainty as they enter what the government described as a "new era" of global trade. The introduction of tariffs by Donald Trump in the United States has created uncertainty among UK businesses regarding their exposure to a new trade regime. The United States has imposed a 25% tariff on steel, aluminum and cars imported from other countries, including Britain, and a 10% tariff on the majority of other imports. The UK Export Finance (UKEF) has increased its lending capacity from 80 billion pounds to 80 billion pounds. Up to 10 billion pounds of this amount will be set aside for those who are most affected by tariffs. Finance Minister Rachel Reeves stated that the world was changing and it was more important than ever for businesses to be supported to meet future challenges. The announcement today will benefit thousands of businesses across the country. As part of this package, small and medium-sized companies will have access to up to 2 million pound in loans.
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Minister: Ukraine seeks solutions for Chernobyl containment vessel damaged
A government minister stated on Saturday that Ukraine is looking for solutions to repair damage caused by the Russian drone attack against the confinement vessel of the Chornobyl nuclear plant. Svitlana Svitlanahrynchuk, Minister of Environmental Protection and Natural Resources spoke outside the decommissioned nuclear station at the inauguration of an 0.8 megawatt solar power plant ahead of two conferences to be held to discuss Chornobyl and related issues. She said that Ukraine is working with experts to determine how to restore the proper function of the containment vessel or arch after the drone strike on February 14. "Unfortunately, following the attack, the arched partially lost its functionality. We will know the results in May of the analysis we are conducting ...," Hrynchuk. She said that the European Bank for Reconstruction and Development (EBRD), scientific institutions and companies who were involved in the installation of the arc to cover the "sarcophagus", which leaked, beneath, in 2019, had been a part of the analysis. The arc was installed in 2019 in the days following the Chornobyl catastrophe in 1986. She said, "In a couple of weeks, we'll have the results from this analysis." "We are actively working to resolve this issue... We need to restore the arch so that no leaks occur under any circumstance, as ensuring nuclear safety and radiation safety are the primary tasks." Officials from the plant stated that the drone attack caused a large hole to be punched in the outer cover of the new containment structure and it exploded within. At the time, Russian Foreign Ministry spokesperson Maria Zakharova called the incident in Chornobyl a "provocation". The containment vessel covered the massive, deteriorating steel and concrete structure built after the fourth reactor of the plant exploded and sent radioactivity across much of Europe. This was the largest nuclear accident in history. A 30-km-long exclusion zone was set up following the accident. The plant is located within this zone, and nearby are abandoned apartment blocks and amusement parks. Hrynchuk stated that the solar power plant was important for maintaining the power supply at the disused station. It was also the beginning of plans to promote renewable energies in the region. She said, "We've been saying this for years: the exclusion zone must be transformed into a zone that promotes renewal." This territory is unique in Ukraine for its suitability to develop renewable energy projects. (Reporting and writing by Yurii Kovalenko; editing by Sandra Maler).
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FT reports that Trump intends to stockpile metals from deep seas in order to combat China.
Financial Times, Saturday, reported that the Trump administration was drafting an executive directive to allow the stockpiling deep-sea materials to counter China's dominance of battery minerals and rare earth supply chain. The report said that the plan would create "large quantities available and ready to use on U.S. soil in the future" in the event of a conflict between the United States and China, which could restrict imports of rare earths and metals. As part of President Donald Trump's response to the tariff package, China imposed export restrictions on some rare earth elements, which could cut off the U.S. from minerals essential to everything from electric car batteries to smartphones. Report added that the stockpile was being considered as part a larger push to speed up deep-sea mine applications under U.S. laws, and create onshore processing capability. China produces 90% of the world’s refined rare earths. This group of 17 elements is used in the electronics, defense, electric vehicles, and clean energy industries. Most of the rare earths that are imported by the U.S. come from China. Requests for comment from the White House and China’s Foreign Ministry were not immediately responded to. Reporting by Rajveer Pardesi, Bengaluru. Editing by Mark Potter
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How much will a seat cost? US businesses are already feeling the impact of Trump tariffs
A manager of a toy shop is bombarded with daily notifications about price increases. A lip balm producer forecasts an increase of $5 million in the cost of goods. The impresario of a concert venue was surprised by a $140,000 price increase to install new seating in the performance hall. The business owners are among 12 managers and business owners who have spoken with about President Donald Trump's new tariff regime. They provide an early indication of what more Americans may expect. Businesspeople expressed their concern over the continued economic turmoil. Trump increased tariffs on Chinese imports while announcing a 90-day tariff freeze on dozens countries. The tariffs are now effectively 145% higher when the levies from earlier in the year are considered. After a week of erratic trade taxes, he kept tariffs at 10% on imports from the majority of other countries for 90 days. Tariffs on Canada, Mexico and other countries that are not covered by trade agreements remain at 25%. Steve Shriver, founder and CEO at Eco Lips in Cedar Rapids Iowa, said, "We are constantly dealing with uncertainty about the future, and our future supply chain." The company makes organic beauty and health products using ingredients from over 50 countries, and sells them to 40,000 stores across the country. Its annual sales are around $30 million. Shriver, on the day Trump announced his pause, sent a note to 300 clients who use Eco Lips' products under their own brands, informing them that the prices would be increasing and the delivery dates would be extended. "I don’t trust it. This is a 90 day pause. Shriver stated that it could change in 10 days. "There is still a 10% tariff across the board. That's a significant addition to our price." Shriver predicted that his cost of goods for the next 12 months could increase by $5 million. This is on top of his usual $10 million annual expenditure, which includes ingredients such as cacao, coconut oil, and vanilla that can't be grown in America. Some businesspeople have cancelled purchase orders, stopped expansion plans, and delayed hiring. "WE'RE SCRAMBLING" Shriver and other said they had received notifications of price increases from suppliers and that they have already increased their own prices. Trump announced tariffs to correct what he called unfair trade imbalances. Trump has also imposed tariffs to achieve goals such as keeping out illegal drugs and migrants, and encouraging domestic production. Paul Kusler’s Into the Wind, a kite and toys store in Boulder, Colorado that has been open for 45 years, has an annual revenue of about $2.5 Million. Kusler's sells a lot of goods that are made in China. "The tariffs against China are simply ineffective, and it's a serious risk to our business," Kusler said, standing among a sea colorful kites. Frisbees. Puppets. Stuffed animals. "We pay our bills every week. "These price increases are occurring now for items that I already have on the door." Kusler stated that the price increases he's seen are between 7% and 10 percent. However, this is due to the short period of time when tariffs on China reached 34% after Trump announced the trade taxes in April. Kusler believes he will be able to absorb an increase of around 3%. He said that the economic turmoil has suppressed demand for his products and will continue to do so. He said that people would not buy toys when they were worried about the rising prices of food and other essentials. Emily Ley is the owner of Simplified in Pensacola Florida, which specializes in office planners designed for women. She said that, since Trump announced tariffs against Chinese goods during his first term in 2017, she had paid over $1 million to the U.S. Treasury in trade taxes. She predicted that she would be able to match the $1 million in the next year at the new tariff rate for China. Ley claimed that she had tried to manufacture her products in the U.S. for many years, but couldn't find a way to make money. She said, "This could end our business." We're scrambling to figure out what to do. Ley has taken the step of suing the U.S. Government, claiming that the tariffs are unconstitutional and rely on statutes which have nothing to do. Aisha Ahmed-Post, the executive Director for the Newman Center for the Performing Arts, at the University of Denver in Denver, Colorado has been managing a major refurbishment for more than a full year. She replaced all 971 seats inside the June Swaner Gates Concert Hall. Newman Center evaluated chairs made by two U.S. manufacturers and one Canadian manufacturer. The chairs of one American manufacturer were way over budget, and the chairs of the other required harsh solvents for maintenance. Ahmad-Post purchased chairs for $560,000 from Montreal-based Ducharme in early 2024 and blocked out six weeks of shows to install the chairs by mid-July. On March 5, Ahmad-Post was notified by Ducharme to "apply tariffs corresponding to your project" and comply with Trump's new trade taxes. The tariffs were 25% at the time. This meant an increase of $140,000 in the Newman Center Seat Project, which was not welcome for a school that is still rebuilding its rainy-day fund after the COVID-19 Pandemic depleted it. Ahmad-Post stated that "the chairs are already being produced, so it's impossible to just change direction." Now we have to figure out how to pay for it. (Reporting from Brad Brooks, Boulder, Colorado and Rich McKay, Atlanta, Georgia. Editing by Donna Bryson, Matthew Lewis and Matthew Lewis.
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Oando pipelines, located in Nigeria's oil rich Bayelsa State, are the target of sabotage.
Oando Plc, a Nigerian oil company, said that three sabotage attempts had been made against its pipelines over the last week in the oil rich Bayelsa State in the south. Oando, the company that now owns Eni’s former Nigerian Agip Oil Co., reported late Friday the incidents involving the 18-inch Tepidaba - Brass crude oil pipeline and the 24-inch Ogboinbiri/Obiobi link in Southern Ijaw District. A spokesperson in a press release said that the company had activated an emergency response team to contain the damage and sent leak repair teams to affected sites. Oando has said that it is working closely with the authorities to carry out a joint investigation to determine the cause and extent of the sabotage. Oando stated that the company would begin full-scale repairs after the visit to "resume operations as quickly as possible". Oil majors such as Shell, Exxon Mobil and Total have all sold their shallow-water and onshore fields in Nigeria, to focus on deep-water operations. Tife Owolabi reports from Yenagoa, Elisha Gbogbo writes and William Mallard edits.
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RWE Drops Bubble Curtain to Silence Construction Noise at Sofia Offshore Wind Farm
RWE has deployed a bubble curtain technology in the U.K. for the first time to protect marine life from the construction noise at its Sofia offshore wind farm.RWE has been working with Hydrotechnik Offshore to introduce an innovative underwater noise-abatement technology, known as a bubble curtain, for offshore wind farm construction in the U.K.The deployment at the Sofia offshore wind farm, located 195km off the coast of England, represents a significant step in protecting marine life from underwater noise generated during piling activities.The bubble curtain, already adopted across Europe, reduces the propagation of underwater noise by creating a barrier of rising bubbles around the turbine installation site.By dampening sound waves, this technology mitigates disturbances to marine species such as harbour porpoises, dolphins, and whales, which rely on ultrasound for orientation.The system works by placing a perforated hose on the seabed around the turbine installation site, forming a 180-meter-wide ring.Compressed air is pumped through the hose, generating a continuous stream of bubbles that rise to the surface. It is this bubble barrier which effectively breaks up and slows down the sound waves, significantly reducing noise levels during piling operations.The adoption of the bubble curtain at Sofia reflects RWE’s dedication to sustainability and marine conservation. The project is situated within the Southern North Sea Special Area of Conservation (SAC), a protected zone for harbour porpoises, where noise disturbance regulations are strictly monitored.“By introducing the use of a bubble curtain on a trial basis, we are strengthening our commitment to environmental responsibility. Projects like this can ensure offshore wind energy can be developed sustainably, with minimal impact on marine life, taking cognisance of working with a Special Area of Conservation,” said Matthew Swanwick, RWE Sofia Project Director.The Sofia offshore wind farm, currently under construction on Dogger Bank, 195 kilometres from the nearest point on the U.K.’s north east coast, will comprise 100 Siemens Gamesa 14 MW offshore wind turbines.Upon its commissioning in 2026, the Sofia project will have a capacity of 1.4 GW, enough to power the equivalent of 1.2 million typical UK homes.
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Ten trading days that rocked financial markets
Shuntaro Sayuchi said that the pain was a 10/10. His appendix, not his portfolio of Japanese stocks, which he manages out of San Francisco in California. The truth would come out just as Matthews Asia's colleagues were on the phone to plot a course for the $7 billion asset management firm through an intensifying market downturn. Takeuchi said, "I was on the conference call just two minutes before surgery." The nurse asked: "Do you have to be here?" Tokyo's Nikkei index was heading for a 4% decline on Wednesday, and global equity markets were losing trillions of dollars, the biggest dollar value drops in history. Since President Donald Trump imposed tariffs on automakers, the 10 trading days have seen the biggest swings in the price of everything from stocks, bonds, oil, and gold to the U.S. Dollar itself. The selling of U.S. Treasuries, the safest asset on the global market and the cornerstone of international trade, was the most intense in decades. It seemed to be a way to show how much the foundations for finance and trade have been weakened. The meltdown started after what Trump called "Liberation Day". On April 2, he raised the highest wall of trade tariffs around the U.S. economic system in 100 years, with a blanket tax of 10% on imports as well as higher rates for individual trading partners. The week after that, it has become an open economic conflict between the United States and China. By Friday, China was under a U.S. embargo on trade as tariffs reached 145%. During the wild ride that began on April 2, more than $5 trillion of market value vanished from the MSCI world stock index. The roller-coaster ride since April 2 has revealed how investors were not prepared for Trump's aggressive tariffs, and that his unpredictable nature and reversals could harm the United States' position as the financial centre. Geoff Wilson is a veteran Australian fund manager. He said, "We have seen a fracture in confidence. We don't yet know the second-order consequences of the market's fall." The next few weeks will reveal the full extent of any consequences. His funds were buyers during the turmoil. TOMB SWEEPING The initial focus of the selling was on any exposure to economic growth, including banks, industrial metals, and companies such as Apple that have supply chains in China. China then retaliated by imposing a 34% duty on all imports from the U.S., shortly before sunset on April 4, tomb sweeping day, a national holiday for paying respect to ancestors. The main global stock index has surpassed the threshold of what is called a "correction", a drop of at least 10% from its peak. Even gold, a safe haven during turbulent times, began to tumble, a sign of doom as investors faced with margin calls had to sell their most secure assets to cover losses. Wong Kok Hoi is the founder and CEO of APS Asset Management, based in Singapore. He has been worried about this scenario for many years. He said that he had never imagined tariffs could rise to 125%. In the days following, tit-fort-tat levies increased. The two biggest economies of the world will cease to trade. He said that his portfolio had grown by around 20% this year. TRADE WAR Wall Street bankers listened in on global meetings to try to calm down clients. Last weekend, there were hopes that Trump would give in before tariffs are implemented. On Sunday, after a golfing weekend, reporters asked him what markets were on Air Force One. He replied "sometimes you need to take medicine." This opened the floodgates. Nasdaq futures soon fell more than 5%, and Nikkei Futures sank 8% before hitting a circuit breaker. The CBOE Volatility Index - Wall Street's fear gauge - spiked over 60, a level that is usually seen in meltdowns like 2020 or 2008 financial crisis. The S&P 500 ended the day 17% lower than a record high that it had reached just seven weeks prior. Christopher Forbes, CMC Markets' head of Asia, said that Friday and Monday had the highest trading volume ever. Takeuchi in California was not only rushing to have surgery but also trying to protect his portfolio. He said that he traded, buying and then selling stocks when they hit the target price or were at a good buy. He looked for companies with limited U.S.-exposure, without wanting to bet on specific sectors or Trump's trade policy. I don't want it to sound too dramatic. We are not in a panic. We control the risks and concentrate on stock selection. BOND FIRE Currency markets have been the main target of price adjustments for tariffs. Bonds were the real shocker. In the early morning hours of Wednesday, just after the tariffs went into effect in New York's middle of the night, Treasuries were hit by a huge wave of selling in Asia. The yields, which are usually small because the market is liquid, exploded and released the most manic phase of the markets' tariff tantrum. The yield on the 10-year Treasury bond jumped by nearly 20 basis points within two hours. Traders interpreted this as either a sign of forced selling in some part of the market or, more alarmingly, that U.S. government bonds are no longer a safe-haven. Within hours, the markets were once again thrown into turmoil. Trump shocked the world when he announced a pause in the higher bilateral tariffs. He also kept a 10% blanket tax on imports while raising levies on China. The stock market roared to new heights, registering some of the biggest percentage gains since 2008. However, with all the uncertainty, they are now starting to tremble again. WHIPLASH Martin Whetton is Westpac's director of financial markets strategy. He has spent 30 years on the markets of Sydney and London. He said: "The fact that money didn't scramble for U.S. Dollar funding to buy Treasuries or the U.S. Dollar as a safety net is shocking and a stark warning." On Friday, the 11th session after Trump announced his auto tariffs, fatigue had set in, but little dust was settled. Beijing increased its tariffs against U.S. imports by 125% on Friday. Stocks dropped, the dollar fell to its lowest level in a decade against the Swiss franc as a safe haven and the talk turned towards whether this period marked the beginning of an end to U.S. financial dominance. Jack McIntyre is the portfolio manager at Brandywine Global U.S., which manages assets worth almost $60 billion. "You concentrate on what you know," said he, with an eye to further drops in the dollar, as the U.S. economic slowdown continues and the rest of world may continue selling U.S. asset.
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Southern California Edison announces a $925 million plan for rebuilding after the LA wildfires
Southern California Edison, a subsidiary utility Edison International said it submitted a plan on Friday to rebuild areas in its service area that were destroyed by the Los Angeles fires of January. SCE stated that the preliminary plan, which was presented to California Governor Gavin Newsom, is estimated to cost between $925 million and $860 million. Securing alternative funding sources, they added, was crucial to make this plan a success. Wildfires ravaged LA beginning on 7 January, causing dozens of fatalities and the destruction of thousands of homes. The cost of the disaster is estimated to have been the highest in U.S. History. Although the cause of the fires is not known, there are several lawsuits that claim SCE towers and power lines in Altadena caused the Eaton Fire. SCE was also sued by LA County and Pasadena City. The company stated on Friday that the investigation is ongoing and "remains dedicated to transparency with the general public". The preliminary plan will also focus on undergrounding the power lines located in Altadena, Malibu and Los Angeles County. Reporting by Vallari Shrivastava, Bengaluru. Editing by Shinjini Ganuli
Trump's tariff war is a recession alarm
The turbulence caused by U.S. president Donald Trump's tariffs has not abated, and the markets are once again in turmoil. Foreign leaders are trying to figure out how to react to this dismantling.
The financial markets received a temporary reprieve on Wednesday, when Trump announced that he would pause tariffs for dozens countries for 90-days. Trump's escalating war of words with China, the world's second largest economy, has fueled fears about a recession and more retaliation.
Scott Bessent, U.S. Treasury secretary, tried to reassure skeptics at a cabinet meeting held on Thursday by saying that over 75 countries were interested in starting trade negotiations. Trump also expressed his hope for a deal to be reached with China.
The uncertainty between now and then has led to some of the most volatile markets since the COVID-19 pandemic.
The S&P 500 index closed Thursday 3.5% lower and is now about 15% below its peak in February.
Asian indices fell on Friday, following Wall Street's decline. Japan's Nikkei was down almost 5% while Hong Kong stocks are heading for their biggest weekly drop since 2008.
LSEG data revealed that the yield on the 10-year bond was set to reach its highest weekly increase since 2001.
Bessent, on Thursday, dismissed the new market turmoil by saying that striking deals with other nations would bring certainty.
White House: The U.S. has agreed to start formal trade negotiations with Vietnam. Exclusively reported on Friday, the Southeast Asian manufacturing hub was ready to crackdown on Chinese goods that were being shipped via its territory to the United States in order to avoid tariffs.
Shigeru Shiba, the Japanese prime minister, has meanwhile set up a task force for trade that is expected to visit Washington, D.C. next week. Taiwan also said that it expects to be part of the first group of trading partners who will hold talks with Washington.
CHINA DEAL?
Trump imposed higher duties on Chinese imports to punish Beijing for its initial retaliatory move.
A White House official confirmed that Trump has now increased tariffs by 145% on Chinese products since taking office.
Chinese officials are contacting other trading partners to discuss how to handle the U.S. Tariffs. They have recently spoken to counterparts from Spain, Saudi Arabia, and South Africa.
Trump told reporters in the White House that he believed the United States and China could reach a deal, but he repeated his claim that Beijing has "really taken the U.S. advantage" for a very long time.
"I am sure that we will be able get along very nicely," Trump said. He added that he respected Chinese president Xi Jinping. "He's been my friend for a very long time and I believe that we will end up working something out that is good for both countries."
China has restricted the import of Hollywood movies, a major American export, after rejecting what it called Washington's threats and blackmail.
The U.S. tariff freeze does not extend to Canada or Mexico. Their goods still face 25% fentanyl tariffs, unless they meet the rules of origin set forth in the U.S. Mexico Canada trade agreement.
Goldman Sachs has estimated that 45% of the time a recession will occur due to the continued hostilities between the three largest U.S. trading partners.
According to researchers at Yale University, even with the rollback the average U.S. import duty rate is still the highest it has been in over a century.
The pause did not ease the concerns of business leaders about Trump's chaotic trade war, which has resulted in a rise in costs, a fall in orders and a snarled up supply chain.
The European Union did, however, announce that it would suspend its first counter-tariffs.
Next Tuesday, the EU was due to introduce counter-tariffs against imports from the United States worth about 21 billion Euros ($23 billion), in response to Trump’s 25% tariffs. The EU is still deciding how to react to the U.S. auto tariffs as well as the 10% levy that remains in place.
The finance ministers of the 27-country group will discuss on Friday ways to take advantage of the pause in order to reach a deal with Washington, and to coordinate their efforts if that doesn't happen.
The European authorities estimate that the U.S. Tariffs would have a total impact on the economy of 0.5% to 1.00 % of GDP. According to the European Central Bank (ECB), the EU's economy is expected to grow by 0.9% in 2018. The U.S. Tariffs could push the EU into a recession.
(source: Reuters)