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US: Minerals deal will strengthen Trump's position in negotiations with Russia
Kyiv, Washington and other Ukrainian officials hailed the deal that gives the United States a preferential access to minerals in Ukraine as a major milestone. A top U.S. government official stated that this would give President Donald Trump a better basis to negotiate with Russia. The Kremlin did not comment on the agreement reached Wednesday, but former Russian president Dmitry Medvedev claimed that Trump "broke the Kyiv regime", because Ukraine will have to pay U.S. military assistance with its mineral resources. The agreement, signed in Washington, and heavily promoted Trump, creates a joint fund to invest in Ukraine's reconstruction, as he tries for a settlement of the war between Russia and Ukraine. The agreement gives the U.S. priority access to new Ukrainian mineral projects. The agreement is crucial to Ukraine's efforts in repairing its ties with White House that were strained after Trump assumed office in January. However, the Ukrainian parliament has yet to consider it. In an interview with Fox Business Network, U.S. Treasury Sec. Scott Bessent said that the deal would show "Russian leadership" that there was no daylight between American and Ukrainian goals. He said: "I think that this is an even stronger signal to the Russian leadership and gives President Trump a much better basis to negotiate with Russia." His remarks seemed to send a message to Russia that Washington is still aligned to Kyiv, despite questions about its commitment to the ally after Trump's return brought U.S. diplomatic relations to a halt. Senior Trump administration officials confirmed that three agreements were signed, including a framework agreement and two technical pacts. They said they expect the Ukrainian parliament to approve these within a week. The Ukrainian president Volodymyr Zelenskiy expressed his hope that the approval of parliament would not be delayed, even though some lawmakers expected it to last longer than a single week. Zelenskiy, in a Telegram video, said that the agreement had changed in its preparation process. He praised what he called an "equal agreement" which created investment opportunities in Ukraine as well as modernisations of the industry and legal practices. Both he and Bessent emphasized the importance of the talks Zelenskiy had with Trump in Rome on April 26, during Pope Francis' funeral. Zelenskiy stated that "we have now achieved the first outcome of the Vatican Meeting, which is truly historic." Ukrainian Foreign Minister Andrii Syhiba stated that the deal was "an important landmark" in U.S.Ukrainian relationships aimed at enhancing Ukraine's security and economy. U.S. FRUSTRATIONS Since Russia's invasion of Ukraine in February 2022, Kyiv is highly dependent on U.S. supplies. It also claims that Moscow has increased its attacks against Ukraine after the U.S. intensified efforts to achieve a peaceful settlement. Washington has expressed its frustration at the inability of Moscow and Kyiv, to reach an agreement on terms. Trump has also shown signs of dissatisfaction with Russian President Vladimir Putin because he has not moved faster toward peace. Medvedev, a former senior Russian security official, claimed that Ukraine was forced to sign the agreement. He wrote on Telegram that "Trump has broken Kyiv's regime to the extent where they will be forced to pay U.S. assistance with mineral resources." "Now (Ukrainians), they will have to buy military supplies using the wealth of a country that is disappearing." Ukraine's international credit rose after the signing the mineral deal. Financial analysts claimed that the terms of the deal were better than what they originally expected. Ukraine has a wealth of natural resources, including rare earths metals, which are used in consumer electronics and electric vehicles, as well as military applications. China dominates global rare-earth metal mining, and is currently locked in a tariff war with the U.S. following Trump's steep tariff increases. Ukraine has also large reserves of iron and uranium. The first deputy prime minister Yulia Shvyrydenko stated that Ukraine had no debt obligations towards the U.S. as a result of the agreement. However, the deal did not provide any concrete U.S. guarantees for Ukraine's security, which was one of Kyiv’s initial goals. On Thursday, Prime Minister Denys shmyhal presented the deal to parliamentary factions in a closed-door meeting. Some members of parliament claimed they hadn't seen the agreement text or been properly consult. Yaroslav Zeleznyak said that the parliament may not vote on the agreement until mid-May. Reporting by Doina Schiacu in Washington, Susan Heavey in New York, Anastasiia Mlenko in Kiev, Tom Balmforth in London, Karin Strohecker and Yuliia Dsya in Kyiv. Writing by Timothy Heritage, Editing by Philippa and Gareth Jones.
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Investors assess mixed corporate earnings as FTSE 100 falls
Investors weighed a mixed bag corporate earnings amid hopes that trade tensions between China and the U.S. will ease. Rolls-Royce, the maker of jet engines, was one of the best performers in the blue-chip FTSE 100 Index. Its share price rose 1.7% as the company said that it could offset tariffs globally to achieve its 2025 profit target. The Aerospace and Defence Index gained 1.1%. Whitbread, the owner of Premier Inn, rose 5.8% thanks to a share-buyback plan and a positive bookings outlook. This boosted the Travel and Leisure Index, which saw a 3.4% increase. Informa's shares rose 4.2% after the group, which publishes academic and events publications, reaffirmed their 2025 outlook. Haleon's gains increased by 3.3% as the consumer healthcare group raised their medium-term profit expectations. Lloyds Banking Group, which has been able to keep its gains under control, dropped 2.7% after reporting a nearly 7% decline in the first-quarter profits. National Grid's stock fell by 1.1% following the announcement that CEO John Pettigrew would be stepping down. The midcap index rose by 1.3%. Ferrexpo, a miner based in Ukraine, soared by 22.2% after Washington and Kyiv signed a mineral deal. A social media account associated with Chinese state-run media reported that the U.S. approached China to seek talks about President Donald Trump's tariffs of 145%, possibly signaling Beijing's willingness to negotiate. In March, British homebuyers increased the amount they borrowed for their mortgages by the highest level in almost four years, as they raced to avoid the expiration of a tax incentive. However, Bank of England data showed that consumers were also showing signs of caution. Investors increased their bets that the BoE will cut interest rates over the rest of this year, and the yields of short-dated government bonds fell sharply before the central bank meeting next week. Separate data revealed that British factory exports fell at the fastest pace in nearly five years, and that cost pressures increased in April. (Reporting by Ragini Mathur and Sanchayaita Roy in Bengaluru. (Editing by Leroy Leo, Mark Potter and Mark Potter.
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Xbox and PlayStation both raise console prices in response to U.S. tariffs
Microsoft's Xbox has increased the price of its consoles, controllers and first-party games, as well as other accessories. This follows similar actions by competitors, due to U.S. Tariffs impacting supply chains globally. Xbox announced in a blog on Thursday that it would be raising the prices of its products across the United States as well as Europe, Australia, and the United Kingdom. Xbox Series X, the more powerful console, will now be sold for around $600 in America. This is an increase of about $100. This move comes just a few short weeks after Sony, the maker of PlayStation 5, raised prices on its PlayStation 5 console across various markets. It signals that console makers are preparing to face increased manufacturing costs as a result of tariffs. The PlayStation 5 Pro console costs around $700 in America. Nintendo's long-awaited Switch 2 is set to be released in June, and it's expected that gaming consoles will drive the growth of the video game market this year. The Trump administration has imposed hefty tariffs on major manufacturing hubs like Japan, China and Vietnam, which have caused a price increase. Analysts have warned these tariffs may hinder the growth of industry, because a potential recession in the economy and an increase in inflation could cause consumers to cut back on discretionary spending. Nintendo resumed the pre-orders of the Switch 2 in late December after originally delaying them due to tariff uncertainty. Xbox will raise the price of some first-party titles to $80. This follows Nintendo's similar pricing policy for "Mario Kart World," which could set a new standard in an industry where development costs are increasing.
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The US House of Representatives votes to ban California's 2035 electric vehicle plan
The U.S House of Representatives has voted to block California's historic plan to stop the sale of only gasoline vehicles by 2035, which was adopted by 11 states. The House has backed legislation that will repeal the waiver granted by U.S. Environmental Protection Agency, under the former president Joe Biden, in December. This waiver allowed California to mandate 80% electric cars by 2035. Major automakers urged this action because the rules were not feasible. California claims the rules are necessary to reduce pollution, and that the vote was illegal. California Governor Gavin Newsom stated that the program is crucial to compete with China in EVs. Newsom stated that "big polluters and right-wing propaganda machines have been successful in buying off Republican Party." The Alliance for Automotive Innovation (which represents General Motors Toyota Volkswagen Hyundai, and other major automakers) warned that car companies may be forced to "substantially reduce the number overall of vehicles for sale in order to increase their percentage of electric vehicle sales." John Bozzella, the CEO of the group, called the vote "welcome and targeted" by the House in order to avoid the inevitable job losses and manufacturing problems that would result from these unachievable rules. Another 11 states have adopted the California Air Resources Board regulations, including New York and Massachusetts, which account for approximately 40% of the U.S. automobile market. Separately, the U.S. House voted on Wednesday to revoke the EPA’s approval in 2023 of California’s plans to demand a growing number of zero emission heavy-duty trucks. The waiver granted under former president Biden to California’s “Omnibus” low-NOx regulations for heavy-duty highway vehicles and off-road engines was also revoked. The question is whether Congress can revoke waivers by using the Congressional Review Act. In March, the The Government Accountability Office has said that waivers are not possible. The CRA allows for repeal of this law with only a majority vote in the U.S. Senate. California's rule requires 35% of the light-duty vehicles for 2026 to be zero emission models. Automakers claim that they cannot meet this figure, given the current EV sales in states that have adopted these rules. California has set a target of 68% EV sales in new vehicles by 2030. Separately, the U.S. Transportation Department has taken steps to reverse aggressive fuel efficiency rules that Biden had adopted. (Reporting and editing by David Shepardson)
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US Ex-Im Bank reverses ban on coal lending abroad, observers say
Three people who attended the meeting said that the board of the U.S. Export-Import Bank voted to reverse a long-standing restriction on lending for coal projects abroad. This reflects President Donald Trump's agenda, which calls for increased domestic coal mining and exports from the United States. The vote came less than one month after President Donald Trump issued an executive directive aimed at revitalizing the U.S. Coal Industry. This included a measure that directed Ex-Im to provide facilities for coal developers. The federal bank that finances overseas projects had tried to take climate change into account in its investment decisions during the Biden administration. It had also not funded a coal project in more than 10 years. Ex-Im’s decision to use U.S. tax payer money to finance overseas coal project is an economic disaster and climate catastrophe. Ex-Im is reverting to its policies of two decades ago, when the company was the world's largest financier of overseas coal projects," Jake Schmidt, senior strategist at Natural Resources Defense Council and an observer of the board meeting, said. Ex-Im has not responded to our request for a comment. (Reporting and editing by Paul Simao; Valerie Volcovici)
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White House rejects Chamber's call for tariff relief for small businesses
The White House rejected an attempt on Thursday to provide immediate relief to small U.S. businesses from tariffs. It said that these companies would benefit from the tax cuts Congress wants to extend. In a letter sent to the administration of U.S. president Donald Trump, the U.S. Chamber of Commerce asked that small businesses be exempted from tariffs, if they could show it would hurt U.S. workers, and if their products cannot be produced in America or are not easily available. When asked by reporters about the request, Stephen Miller, deputy chief of staff at the White House for policy and administration, said: "The relief will come in the form the largest tax cuts in American history." Miller responded that tax relief is a "yes" for small businesses. Trump's Republican colleagues in Congress want to pass legislation that extends the U.S. president Donald Trump's tax plan for 2017, which expires this year. The Republicans in Congress, who hold a 220-213 majority in the House, and a 53 to 47 advantage in the Senate have stated that they intend to pass their tax cut bill by the 4th of July, despite their small majorities. The Chamber of Commerce said that it supported Trump's goal to eliminate unfair trade, but small businesses were being hurt by increased costs and interruptions in supply chains during ongoing tariff negotiations. It called on the administration to work together to "avoid a recession". In a separate press release, Suzanne Clark, President and CEO of the Business Lobbying Group said that "These deals are time-consuming and many businesses cannot afford to wait for negotiations to proceed." "They need immediate relief." She also added that the Chamber is seeking to exclude businesses of any size where U.S. job security was threatened. Clark stated that certain products simply cannot be manufactured in the United States. Clark said that raising the price of those products would only hurt families who are struggling to pay bills. (Reporting and editing by Chizu Nomiyama, Franklin Paul and Chizu Heavey. Additional reporting by Doina Chiacu.
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Wall Street jumps with tech boost; yen falls on BOJ gloom
Gold prices fell and Wall Street stocks rose on Thursday, as investors' risk appetite was boosted by solid earnings reports from the big tech companies. The Nasdaq, which is dominated by tech companies, rose 2.4% on the back of positive quarterly results. The S&P 500, the bellwether index of the stock market, is on course to extend its winning streak to eight consecutive sessions - its longest since August 2024. Dollar rose as yen fell after Bank of Japan cut growth forecasts because of uncertainty surrounding U.S. Tariff policy. May Day holiday has caused a drop in trading across Asia and Europe. After the steep tariffs announced by U.S. president Donald Trump on April 2, which shook world markets throughout last month, there were no major announcements about trade negotiations. Oliver Pursche is a senior vice president with Wealthspire Advisors in New York. He said: "I think that the news about tariff negotiations is going to be similar to what we heard over the past few days. That is, lots of deals have been done but they are waiting for the other party to sign off, which to me seems to indicate there has not been a deal made." They may be working on agreements, but until they put ink on paper, there is no agreement. The first quarter earnings season has now reached its midpoint, with 375 S&P 500 companies having already reported. LSEG reports that 74% of those companies have beaten analysts' expectations. Apple Inc. and Amazon.com will report their quarterly earnings after the closing bell. They are the fifth and six members of the "magnificent Seven" to do so. Nvidia is the last member to be expected to announce its first quarter earnings on May 28, which will leave the chipmaker. The economic situation in the United States is still in a contraction. Meanwhile, jobless claims have increased much more than analysts had expected. The Dow Jones Industrial Average increased 311.33 points or 0.77% to 40,981.02, while the S&P 500 rose 76.53 or 1.37% to 5,645.25, and the Nasdaq composite was up 413.81 or 2.36% to 17,860.15. HOLIDAY MAY DAY May Day is a holiday that many markets around the world, including in Europe, are closed. The MSCI index of global stocks rose by 5.63 points or 0.68% to 839.17. The pan-European STOXX 600 Index was flat while Europe's FTSEurofirst 300 Index fell by 1.24 points or 0.06%. Emerging market stocks dropped 2.91 points or 0.26% to 1,109.93. MSCI's broadest Asia-Pacific share index outside Japan fell 0.19% to 579.92. Japan's Nikkei climbed 406.92 points or 1.13% to 36,452.30. After the BoJ downgraded its outlook, the greenback gained after the BoJ reduced the prospects for future rate increases. The dollar index (which measures the greenback in relation to a basket including the yen, the euro and others) rose by 0.55%, reaching 100.22. However, the euro fell 0.41%, at $1.127. The dollar gained 1.6% against the Japanese yen to reach 145.36. The yield on the benchmark 10-year U.S. notes increased 2.3 basis point to 4,198% from 4,175% at late Wednesday. The 30-year bond rate increased by 4.5 basis points from 4.68% to 4.7248%. The yield on the 2-year bond, which is usually in line with expectations of interest rates for the Federal Reserve (Fed), rose by 1.8 basis points, to 3.639% from 3.621% at late Wednesday. The oil price has reversed its earlier decline on the back of fading fears about a softening in demand. U.S. crude climbed 0.93%, to $58.77 per barrel. Brent rose to $61.52 a barrel, up by 0.75% for the day. The gold price continued to fall, reaching a new two-week-low as investors shifted away from the metal of safety. Spot gold dropped 1.94% to $3.224.06 per ounce. U.S. Gold Futures fell 2.43% to an ounce of $3,224.70.
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EIA delays US Natural Gas Weekly Storage Report
In a tweet posted on X, the U.S. Energy Information Administration announced that it would delay its weekly report on natural gas storage in the United States. The report is usually released at 10:30 am EDT (1430 GMT), on Thursdays. The EIA announced on X, "We will post the release as quickly as possible." We also said that we would give an hour's notice before publication. The EIA officials were not able to immediately explain why the report on gas was delayed. Three sources have confirmed that the EIA (the U.S. Government's Energy Statistics arm) is about to lose more than 100 employees following the latest round of resignations offered by President Donald Trump. This puts at risk the world's most closely followed energy reports, they said. EIA releases weekly, monthly, and annual data about oil and gas production, crude and fuel inventory, and price forecasts. These are all used as indicators by energy companies and traders to determine supply and demand. These reports can have a significant impact on global oil prices. Analysts estimated that utilities pumped 107 billion cubic foot (bcf), or 107 billion cubic meters, of gas during the week ending April 25. This compares to an increase of 64 Bcf in the same week of last year, and a 5-year average of 58 Bcf at this time of the year. The build-up of gas would be near normal for this time of the year if the build-up is correct. (Reporting and editing by Ros Russell. Edited by Scott DiSavino)
Canada's Northern Graphite Plans to Put Quebec Mine on Care and Maintenance
Northern Graphite, a Canadian mining company, will place its Quebec facility under care and maintainance, effectively ending production at North America’s only graphite-producing facility, by 2025 if it fails to find funding for expansion, according to its CEO.
The graphite price, which is not traded at commodity exchanges but has fallen by half in the past year along with that of other battery metals due to the slow increase in sales of electric vehicles and aggressive pricing from China's dominant producer.
Industry officials claim that China, which controls at least 70 percent of the graphite markets, has a pricing monopoly.
Hugues Jacquemin, CEO of the company, said: "We are putting pressure on all our stakeholders, including government, to assist us in financing."
He added, "We don't think it's right to shut down the only graphite producing mine in North America, because that's like killing a golden goose."
Jacquemin stated that if the mine received funding, it would be able to continue operating for an additional eight years.
Northern Graphite has requested C$10 Million to expand the Lac de Iles Mine in Quebec, Canada. The 35-year old facility sells mainly to industrial customers in the United States. In 2024, it is expected to produce 12 thousand metric tonnes.
Even though Northern Graphite doesn't supply materials to battery manufacturers, it still feels the pinch from low commodity prices.
China tightened its grip on commodities such as graphite despite the price crash. Beijing's Commerce Ministry announced export controls on graphite to the U.S. at the end of last year.
Jacquemin stated that the uncertainty and risks associated with China's supply had caused potential investors shy away. Any disruption in supply may impact U.S. industry customers.
He said that the company needed help from investors, governments, and banks. Once the Quebec plant was put under maintenance, it might not restart it. Instead, it would focus on its other mine in Africa. (Reporting and editing by David Evans in Toronto, and Divyarajagopal from Toronto)
(source: Reuters)