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In a case involving money laundering and Odebrecht, a Peruvian court has sentenced ex-President Humala to prison
The Peruvian Court sentenced Ollanta Humala, the former president of Peru, to 15 years behind bars for illegally receiving campaign funds from a Brazilian company. He is now the latest former leader in Peru to be sent to prison. Humala, his wife and their campaign team were accused of receiving money from Brazilian Odebrecht (now known as Novonor) during his successful 2011 elections. Nadine Heedia, Humala's spouse, was sentenced on Tuesday to 15 years of prison. The former president, a retired officer who led Andean nations from 2011 to 2016, is likely to serve his sentence in a police station built specifically to house Peruvian leaders behind bars. Alberto Fujimori, the former president of Mexico, is currently in jail at this site. Humala referred to the accusations as political persecution during his three-year trial that lasted after he began an investigation in 2016. Humala, the former president's other daughter, was accused by prosecutors of receiving illicit funds through Humala’s Nationalist Party in order to run his 2011 campaign. Even if he decides to appeal the conviction, his imprisonment will take effect immediately. The court will continue to read out the entire sentence over the next few days. LATEST LAVA JATO CONVICTION Odebrecht, a former construction giant that admitted to bribing governments in Latin America for the purpose of building its empire, has now changed its name to Novonor. In 2020, it changed its name from Odebrecht to Novonor and is now facing bankruptcy proceedings. Humala, Peru's second ex-president to be imprisoned, is the fourth person to have been implicated in the massive corruption case known as Lava Jato. In 2019, the former president Alan Garcia shot himself to death as police surrounded his house to arrest him over alleged corruption in relation to the firm. Pedro Pablo Kuczynski had to resign after only two years of office the year before. Toledo, meanwhile, was sentenced last year to 20 years in prison after it received $35 million as bribes for contracts with the public sector. Former Odebrecht executives testified in Peruvian courts that the company had funded nearly all of the presidential candidates for the country over a period of nearly 30 years. (Reporting and writing by Marco Aquino, Kylie Madry, Alistair Bell, Aida Peaez-Fernandez; editing by Chizu nomiyama)
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Sheinbaum: Mexico is negotiating with its northern states in order to send more water to the US.
Mexico's federal and state governments are negotiating to send more water from their northern states to the United States. This comes after President Donald Trump threatened tariffs and sanctions because of the historic shortage. Mexico has been forced to scramble for solutions, after falling behind in its obligations under a 81-year old water-sharing agreement with the U.S. In her daily press briefing, Mexican President Claudia Sheinbaum stated that "talks are underway with the governors from Tamaulipas and Coahuila to determine the amount of water that can be delivered... without impacting Mexican producers while also complying to the 1944 treaty." Reports last week indicated that Mexico would likely enforce an amended treaty inserted last year, which allows federal officials in Mexico to withdraw extra water from their states to meet obligations. However, state governments are likely to resist this move. According to the agreement that defines the water-sharing arrangement between the U.S. and Mexico through a system of dams and reservoirs interconnected, Mexico is required to send 1,75 million acre feet of water from the Rio Grande each year. A single acre-foot is equivalent to about half of an Olympic-sized swimming pool. According to the International Boundary and Water Commission, the current five-year cycle of the treaty ends in October. However, Mexico has only sent 30 percent of the water required. Officials in Mexico have stated that the pervasive conditions of drought have made it difficult for them to meet their delivery obligations. Officials in the United States accuse Mexico, however, of flagrantly disregarding the treaty. They also claim that Mexico prioritizes its own agricultural sector at the expense Texas farmers. Agriculture-producing northern states, already struggling with drought, closely guard their water supplies. Chihuahua officials and Tamaulipas officials have previously said that their states could not spare any additional water. They also questioned the legality the treaty amendement which gives the federal government more authority to take the water. Mario Mata, the executive director of the Chihuahua water council, said that the state was considering legal action to stop the amendment. This raises the possibility of a standoff. One protester was killed by the Mexican National Guard in 2020 when they clashed at Boquilla Dam, Chihuahua, with farmers over water deliveries to Texas. Sheinbaum stated last week that Mexico will send immediate water to Texas farmers. She did not specify a quantity. Sheinbaum said that Mexico sent U.S. officials an offer to fix the delayed deliveries. Last week, a Mexican official said that Mexico had agreed to send 122,000 acres-feet (acres-per-foot) of water to the U.S. It is also working on a plan to deliver an additional 81,000 acres-per-foot. This additional water would mean Mexico has still sent less than 40% the water that it is owed under the treaty.
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NOPA US soybean crush in March is 194,551 million bushels below most estimates
According to data released by the National Oilseed Processors Association on Tuesday, U.S. soybean crushing in March was below most estimates. The industry's daily average processing rate also declined for a second consecutive month. NOPA members, who account for 95% or more of U.S. processed soybeans, crushed 194.551 millions bushels last month. This is up 9.4% compared to February's crush of 177.870, but down 0.9% compared to the March 2024 crushing of 196.406, According to NOPA, the March total indicated an average daily processing rate of 6.276 millions bushels per day. This was lower than the 6.353million bushels per day crushed in the month of February, and the lowest rate since September. The average processing rate decreased despite the inclusion of Scoular, a new member of the NOPA, and its crushing plant in Goodland (Kansas) in the monthly report by the group for the first month in March. In recent years, the rate of soy crushing has increased as more processing plants came online and facilities have expanded their capacity to meet the rising demand for biofuels. Analysts said that a slump in soymeal and weaker crush margins caused several plants to reduce their output over the past few months. Nine analysts polled estimated that the March 2025 crush would be below the average analyst's estimate of 197.602 millions bushels. Estimates ranged between 193.500 and 202.000 million bushels with a median estimate of 198.000 millions bushels. As of March 31, soyoil stock levels among NOPA member companies fell for the first six-month period to 1.498 bn pounds. This is down 0.3% compared to 1.503 bn pounds at the end February, and 19.1% compared to the 1.851 bn pounds of stocks one year ago. Six analysts estimated that stocks would rise on average to 1.617 trillion pounds. The estimates ranged between 1.475 billion and 1.700 billion pounds, with a median estimate of 1.624 million pounds. (Reporting from Karl Plume).
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Chile, Canada, and Peru respond to Trump's copper tariff probe
Three of the top copper suppliers in the United States have told the administration of President Donald Trump that the imports do not pose a threat to U.S. national security. Chile, Canada, and Peru are attempting to avoid potential tariffs for the metal, which is needed for electric cars and other industrial applications. Trump began a probe in February into potential duties under the Section-232 national security provision of Trade Expansion Act of 1964, which he had used during his first term in the United States to impose global tariffs of 25% on steel and aluminium. In recent weeks, the three countries have reacted to the investigation through letters that they submitted to the U.S. Commerce Department. These letters are now available publicly on a U.S. Federal website. According to Trade Data Monitor's (TDM) data, these nations together account for 94% of U.S. copper imports and copper alloys. Chile is the top exporter, accounting for 70% of these imports. Canada has 17% and Peru 7%. All are covered by free trade agreements. In a letter dated 31 March, Chile's Ambassador in Washington Juan Valdes stated that "Copper imports are beneficial to the United States supply chain and do not pose any threat to its national interests." The Trump administration is yet to provide any details on the results of its February investigation that aims to reduce China's influence on the global copper markets. Section 232 investigations must be completed within 270 calendar days after they are initiated. The American Chamber of Commerce in Chile stated that Chilean copper exports are beneficial to the United States in terms of security and economy, and that tariffs may end up helping China. Chile exports most of its products to China. In a letter, Paula Estevez wrote that "the playing field has been leveled and tariffs on Chilean Copper would only serve as a way to make Chilean copper exports more appealing to China and ultimately weakened the economic and security interest of the United States." The Canadian government stated that maintaining a free trade in copper would help the United States' security efforts, as this metal is used in defense industries. The top Canadian mining group said that tariffs would give China an advantage over the United States. In a letter, Pierre Gratton wrote that imposing tariffs on Canadian Copper would be counterproductive. In a letter, the Peruvian ministry of foreign trade also asked the United States not to impose any restrictions on the country's copper imports. It noted that the imports did not pose any security risk. The letter stated: "We are confident that our reliable and longstanding trade relationship will continue... thus allowing our exports continue."
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Nigeria prepares a petroleum product stockpile in order to combat global supply shocks
The Nigerian petroleum products regulator announced at a Tuesday press conference that the country plans to create a strategic national stockpile of petroleum products this year in order to protect its economy from disruptions on the international market. Farouk Ahmad, the head of Nigeria's Midstream and Downstream Petroleum Regulatory Authority said that the reserve would reduce supply shocks and improve the energy security of the nation. Nigeria is a country rich in oil, but it suffers from fuel shortages, and there are often long lines. The country aims to use expanding domestic refining capacity, particularly the 650,000-barrel-per-day Dangote Refinery, to build resilience against global supply fluctuations. Ahmed stated that the new National Strategic Stock would be much larger than the current Nigerian Petroleum Reserves, which cover about 30 days' supply. The stock will be modeled after the Strategic Petroleum Reserve of the United States. He did not specify how much he planned to reserve. The Nigerian Petroleum Industry Law requires the regulator to grant a bulk petroleum storage licence to private depots. These depots can store products as long as they need. The Dangote Refinery, as well as five other refineries, were started in September. This resulted in a significant reduction in Nigeria's gas imports, which dropped from 50.8 millions litres a day in September to 28,7 million litres a day in October. According to data from the regulator, local refineries that are currently operating will process 770.500 bpd by June. The regulator expressed confidence that the expansion of refineries could eliminate the need to import gasoline. Reporting by Isaac Anyaogu Editing By Rod Nickel
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Austrian banker loses battle against extradition to US for money laundering charges
London's High Court on Tuesday ruled that the former CEO of an Austrian Bank can be extradited back to the United States for money laundering charges related to Brazilian construction firm Odebrecht. Peter Weinzierl, former chief executive officer of Meinl Bank (later renamed Anglo Austrian AAB Bank), is accused of helping to launder hundreds millions of dollars through a scheme that involved the use of slush money to bribe government officials. The 59-year old Austrian denies these allegations and has fought to prevent his extradition for a variety of reasons, including the fact that he had been "lured" into Britain in May 2021 in order to be arrested by an alleged U.S. agent. In June 2023, his appeal against his extradition decision was largely rejected. The High Court had previously ruled that Weinzierl was not extradited for one charge, conspiracy to commit money-laundering. However, the court approved Weinzierl’s extradition in regard to his other charges. The UK Supreme Court has blocked the appeal of Weinzierl’s case. Judge Jeremy Johnson ruled on Tuesday that the case does not raise a question of law of public importance. David Pack, Weinzierl’s lawyer, said in a press release: "The judiciary has missed an opportunity to give certainty regarding UK-U.S. Extradition Law." Weinzierl is facing charges in New York over his alleged involvement in a massive fraud scheme and bribery scheme that involved Odebrecht. Odebrecht changed its name to Novonor SA in 2020 after its previous name became synonymous with corruption. Odebrecht admitted to paying bribes in Latin America for the construction of its massive construction empire. Odebrecht, Brazil's biggest petrochemicals firm, and Braskem, its affiliated petrochemicals subsidiary, paid at least $3.5 Billion in 2016 to settle charges brought against them by U.S. authorities, Brazilian authorities, and Swiss officials.
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Chile pushes back against Trump copper tariff probe
The Chilean government wrote to President Donald Trump’s administration informing them that the copper imports from Chile - the largest supplier of metal to the United States - do not pose a threat to U.S. national security. Trump ordered an investigation in February, under Section 232 of the 1962 Trade Expansion Act. This is the same U.S. legislation he used during his first term in order to impose global tariffs of 25% on steel and aluminium. In a letter dated March 31, the Chilean government expressed their anti-tariff position in a U.S. Commerce Department document that is now available publicly on a U.S. Federal website. Chile's Ambassador in Washington, Juan Valdes, wrote that copper imports from Chile contributed to the United States supply chain security. They did not pose any threat to their national security interests. The Trump administration has yet to provide any details on the results of its February investigation that aims to reduce China's influence on the global copper market. Section 232 investigations must be completed within 270 calendar days after they are initiated. Chile is the largest copper producer in the world, accounting for a quarter. Most of Chile's exports are sent to China. A free trade agreement has been in place since 2004 to cover its imports into the United States. The American Chamber of Commerce in Chile stated that Chilean copper exports are beneficial to the United States in terms of security and economy, and that tariffs may end up helping China. The group's CEO, Paula Estevez said that "the playing field has been leveled and tariffs would only serve to increase the attractiveness of Chilean copper exports to China and ultimately weaken the economic and security interest of the United States" in a March 31 letter, which is also available on the U.S. Federal website.
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B2Gold will cut 300 jobs from Namibia in this year
B2Gold, a Canadian gold mining firm, plans to reduce 300 jobs in Namibia by the end of this year. The company will continue its phased downscaling at Otjikoto after it has exhausted open pit reserves. Otjikoto, which started commercial production in March of 2015, produced an unprecedented 198,142 gold ounces last year. This accounted for almost a quarter B2Gold’s total output. "By 2025, we will reduce our permanent staff from 700 to 400. This means that 300 employees will be affected during 2025", B2Gold Namibia’s country manager John Roos told reporters Monday at a company presentation. Otjikoto also reported a record profit thanks to record-high gold prices. The company plans to continue processing the stockpiles until at least 2032. Current underground operations of the mine are expected to last until 2027. An extension is possible if exploration uncovers new mineral deposits. B2Gold began its phased reduction in Namibia in the first quarter 2024. 130 employees were laid off in that year. Otjikoto is expected to produce 165,000-185,000 ounces gold this year. B2Gold has gold mines operating in Mali, the Philippines and other countries. It also has numerous exploration and development projects in Mali, Colombia, and Finland. (Reporting and editing by Nelson Banya, Tomaszjanowski, and Tomasha Janowski).
Gold drops from a record high, but still holds above $3200 due to tariff fears
Gold prices dropped from their record highs on Monday, after U.S. president Donald Trump excluded smartphones, computers, and other electronic devices from his tariffs. However, the uncertainty surrounding tariff plans kept gold prices above $3,200 an ounce, which is a significant level.
As of 0852 GMT, spot gold fell 0.4%, to $3,222.49 per ounce. Bullion reached a record-high of $3,245.42 in the morning.
U.S. Gold Futures dropped 0.2% to $3.238.50.
The market sentiment improved this morning, after President Trump exempted electronics and smartphones from US Tariffs. "This has partially caused a drop in gold prices due to profit taking," said Zain Vwda, a MarketPulse analyst.
Gold has traditionally been viewed as an investment that can protect against economic and geopolitical uncertainty.
On Friday, the White House announced that smart phones and computers would not be subject to China's steep tariffs. Trump announced on Sunday that he will announce the tariff rate for imported semiconductors in the coming week.
Vawda said that any drop in the gold price is likely to be only temporary.
Gold is a safe haven asset that continues to be in demand, as a US-China agreement seems unlikely. Vawda also added that the falling US dollar is a factor in gold's appeal.
Dollar-priced gold is now cheaper for foreign buyers.
Gold's rally has continued, with a rise of over 23% this year. It surpassed the $3,200 barrier for the first-time on Friday. Bullion's price has been boosted by several factors including the economic uncertainty caused by Trump's tariff plans and central bank demand.
Goldman Sachs has increased its year-end gold forecast to $3,700, citing stronger-than-expected central bank demand and heightened recession risks impacting ETF inflows.
Spot silver remained at $32.27 per ounce while platinum gained 1% to $952.10. Palladium rose 2.2% to $935.38. (Reporting and editing by Shashesh Kuber in Bengaluru, Anmol Choubey from Bengaluru)
(source: Reuters)