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Petronas estimates that the proposed ENI joint venture will take between one and two years to set up.
Petronas anticipates that it will take between one and two years to establish a joint venture proposal with Italian energy group Eni for some upstream assets located in Indonesia and Malaysia. This was revealed by a senior executive at the state-run company on Tuesday. In February, the companies signed an agreement on a joint venture to combine approximately 3 billion barrels equivalent of oil (boe) with an additional 10 million boe in exploration potential. The idea behind the combination was to create an independent entity that could be self-financed, Mohd. Jukris Abdul wahab, executive vice president of Petronas and chief executive officer of upstream, told the Energy Asia Conference in Malaysia's capital. Eni's Chief Operating Officer, Guido Brusco said: "This is a major game changer in the region." We are combining assets in Malaysia and Indonesia, especially the Kutai Basin." Eni's Kutai Basin investments include the Northern Hub and Gendalo Gandang Hubs, which contain massive gas reserves. Petronas said that it would like to include oil projects in Indonesia’s Kutai Basin as part of the joint venture. It proposed to swap its assets and blocks in Malaysia and Indonesia for Eni’s blocks in Indonesia. Petronas has said that it will exclude Indonesian assets awarded to the company recently, including the Binaiya block and the Serpang block. (Reporting and writing by Florence Tan and Ashley Tang, Emily Chow and Clarence Fernandez; editing by Tom Hogue and Clarence Fernandez).
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Dalian iron ore falls as traders evaluate mixed Chinese macro-data
Iron ore prices fell on Tuesday, as traders assessed mixed macroeconomic reports from China's top consumer. However, resilient steel mill profit lent some support. As of 0255 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange was trading 0.43% lower. It was priced at 696.5 Yuan ($97.00) per metric ton. The benchmark July Iron Ore price on the Singapore Exchange dropped 1.03%, to $93.1 per ton. The National Bureau of Statistics reported on Monday that China's crude-steel output fell 6.9% in May from a similar period a year ago to 86.55 millions tons. Official data released on Monday showed that new home prices dropped in May, continuing a two-year stagnation. This highlights the challenges facing the housing sector, despite multiple rounds of support policies. Retail sales, which are a measure of consumption, have picked up, providing temporary relief in the midst of a fragile truce between China and the United States. Galaxy Futures, a broker, stated that while blast furnace production is at its peak, profits are high and steel mills do not feel the need to reduce production. According to Mysteel, as of June 12th, 60% of China's blast furnace steel mills reported positive margins. Mysteel data revealed that the volume of iron ore arriving at ports fell by 8.62% on a weekly basis to 23,85 million tonnes as of 13 June. Coking coal and coke both increased by 0.77% and 0.74 %, respectively. The benchmarks for steel on the Shanghai Futures Exchange have lost ground. The price of rebar fell by 0.03%. Hot-rolled coils dropped 0.13%. Wire rods lost 0.67%. Stainless steel was down 0.6%. $1 = 7.1805 Chinese Yuan (Reporting and editing by RashmiAich; Michele Pek)
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GRAINS - Chicago soybeans fall on favorable weather and weaker soyoil
Chicago soybean futures declined on Tuesday after a two-day rally, due to favorable weather conditions for U.S. crops and lower soyoil price. As of 0222 GMT the most active soybean contract fell 0.23%, to $10.67 a bushel. This halted gains fueled by surging crude prices and stricter U.S. biofuel blend mandates. On Monday, soybeans reached a new high of one month and soyoil an all-time high of 20 months. Analysts say that tensions between Iran and Israel could cause energy prices to rise, causing a spike in grain prices. Andrew Whitelaw is an agricultural consultant with Episode 3. The region has a major impact on the grain markets. The Soyoil Contract dropped by 0.85% to 54.64 cents a pound as traders made profits and removed some support for soybeans. Oilseeds continue to be affected by a weakening demand, uncertainty over tariffs and global competition. The price of corn fell 0.06%, to $4.35 per bushel. This was due to the weekend rains that were beneficial for key growing areas, such as the Plains, the Northwest and Southeast Midwest, and parts of the Plains. However, strong export data helped curb losses. The latest U.S. corn harvest inspections reached 1.67 million tons, which is higher than expected. According to U.S. Government data, the weekly condition ratings of the corn crop in the United States also improved. They were the highest they had been for several years at this time. Soybean ratings declined. The price of a bushel rose by 0.84%, to $5.41. However, harvest pressures limited gains. After a slow start, the U.S. harvest of winter wheat is now expanding. The USDA reported that the winter wheat harvest was 10%, up from just 4% one week earlier but still behind the average for the past five years of 16%. Analysts had on average estimated harvest progress as 11%. Traders said that commodity funds bought soyoil contracts at the Chicago Board of Trade on Monday, but sold corn, soybeans, soymeal and wheat futures.
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Singapore exports fall unexpectedly by 3.5% in May
Singapore's domestic non-oil exports dropped 3.5% from the same period a year ago, according to government data released on Tuesday. This was in contrast with analyst expectations, as shipments into the United States plummeted a month after Washington announced new tariffs. The drop was compared to a poll prediction of an 8.0% growth year-on-year, and came after a 12.4% increase in April. Electronics shipments rose slightly, but petrochemicals and non-monetary gold as well as specialised machinery dropped. Brian Lee, an economist at Maybank, said that a boost in exports caused by frontloading is cooling. This can be seen in the 20,6% drop in exports from the United States compared to a year ago after five months of growth. He suggested that the drop could have been made worse by a large base from a year ago. In May, exports to Taiwan and Indonesia increased on an annual basis, while those to Thailand, Malaysia, and the U.S. decreased. The outlook remains uncertain for the financial center as the United States' tariffs are expected to slow global trade. Singapore's GDP forecast was downgraded in April from 1%-3% to 0%-2%, citing the risk of a recession and job loss. Gan Kim Yong, Singapore's Trade Minister, said in May that the U.S. would not budge from its 10% tariff on Singapore but that the nation was working to negotiate concessions for pharmaceutical tariffs President Trump had threatened to implement. Singapore, one of the most open economies in the world, is often viewed as a bellwether economy for global growth. Its international trade dwarfs that of its domestic market. (Reporting and editing by John Mair; Reporting by Jun Yuan Yong)
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Oil prices jump as Trump calls for Tehran to be evacuated.
U.S. Stock Futures fell and Oil Prices rose on Tuesday as Investors were shaken by U.S. president Donald Trump's request for everyone to leave Tehran, with the fifth day of Israel-Iran combat sowing fears of an broader regional war. The markets were tense after another report claimed that Trump asked the national security adviser to prepare the situation room when he cut his trip short to the Group of Seven Summit in Canada. Trump had earlier called on everyone to evacuate Tehran immediately and reiterated the fact that Iran should've signed a deal with the United States. Recent developments have triggered a wave in the early Asian trading. S&P futures dropped 0.46% and European futures declined 0.69%. Crude prices briefly rose more than 2%. The market is now exhibiting some risk aversion as it adds another element of uncertainty to the market. This was said by Tony Sycamore a market analyst with IG. Wall Street closed Monday higher after sources said that Iran wanted an immediate ceasefire between Israel and Trump, which also dampened a rally of crude prices. Israel's attack on Iran's state-run broadcaster and its uranium-enrichment facilities escalated the Iran-Israel air conflict, the largest battle between two long-time enemies. Investors moved towards safe-haven assets like gold, which gained 0.5%. Meanwhile, a rise in U.S. Treasuries drove yields down across the curve. The yield of the benchmark 10-year bond was about 2 basis points lower at 4.43%. The dollar strengthened against the euro and yen, while maintaining a tighter range. The broadest MSCI index of Asia-Pacific stocks outside Japan rose a little, and futures tracking Hong Kong’s Hang Seng Index also increased a bit. Investors will focus on interest rate decisions from a number of central banks this week, with the Bank of Japan's decision expected later that day. The BOJ's two-day meeting is expected to end with the BOJ maintaining short-term rates at 0.5%. However, markets will be interested in the institution’s view on quantitative tightening. The Nikkei 225 index in Japan rose 0.5%. Meanwhile, the yen fell to 144.96 dollars per yen. Investors expect the BOJ will consider slowing down its reductions in bond purchases next, as it focuses on avoiding major market disruptions, and tries to wean off the decade-long massive stimulus. This would be the country's first major decision after recent auctions showed a declining appetite for longer-dated bonds and drove yields on the country's debt to record levels. On Tuesday, the yields of 30-year and forty-year bonds were largely stable. Investors will pay attention to the comments of officials during a week that is filled with meetings by central banks around the world as they try to navigate Trump's unpredictable tariff policies and the impact they have on the global economic situation. On Wednesday, the Federal Reserve will likely hold its rates at the same level. However, the attention once again will be focused on the future path that Fed Chair Jerome Powell outlines for rate reductions. Traders have priced in two rate cuts by the end the year. Sycamore, IG's central banker, said: "To be a Central Banker is a challenging job right now. On top of the current tariff situation and trade policy as well as the signing of deals by deadlines there is this Middle East uncertainty." The macro backdrops we are seeing now are not more difficult than they were before. The risk of prolonged unrest and disruptions in oil supply have sent commodities prices higher. Brent crude futures contract rose 0.34% to $73.47 per barrel. West Texas Intermediate crude rose 0.43% to $72.09. Gold was trading at $3,393.05 an ounce, up by 0.3% for the day.
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London metals fall as dollar strengthens, Middle East tensions increase
The price of metals fell in London on Tuesday due to a stronger dollar, and the escalating tensions with Iran and Israel. As of 0124 GMT, the London Metal Exchange reported that three-month copper was down by 0.3%, at $9,673.50 a metric ton. LME aluminium fell by 0.1% to 2,511.50 dollars a ton. Zinc fell 0.4% at $2,649; lead fell 0.4% at $1,998.50; and nickel dropped 0.4% at $15,005. Tin fell 0.4% to $32,505. The SHFE's most-traded contract for copper gained 0.3%, to 78.500 yuan per metric tonne ($10,934.67). Israel and Iran attacked one another for the fifth day in a row on Tuesday. U.S. president Donald Trump called on Iranians to leave Tehran citing his country's rejection to a deal that would curb nuclear weapons development. As geopolitical tensions escalated in the Middle East, U.S. futures fell and oil prices rose. The dollar index increased by 0.3% against its competitors. The dollar's strength makes commodities priced in greenbacks more expensive for buyers of other currencies. Better-than-expected retail data from China released on Monday offered some relief and raised hopes for a rise in metals demand. As part of the deal between the United States and the United Kingdom announced during the G7 Summit, on Monday, the U.S. will impose a tariff-free quota for steel and aluminum imported from the United Kingdom. SHFE aluminium was unchanged at 20,400 Yuan per ton. Lead was also flat at 16,915 Yuan. Nickel fell by 1.1%, to 118.400 Yuan. Zinc gained 0.3%, at 21,870 Yuan. Tin fell 0.4%, to 263,620 Yan. Click or to see the latest news in metals, and other related stories.
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Australian shares lack direction due to financial counter miners
Investors were cautious after reports of an Israel-Iran possible ceasefire. This led to a decline in Australian shares on Tuesday. As of 0035 GMT, the S&P/ASX 200 was unchanged at 8,547.50. The benchmark closed Monday with little change. Reports late on Monday indicated that Iran had asked its regional allies, including the United States President Donald Trump, to exert pressure on Israel to bring about an immediate ceasefire. This raised hopes for a possible Middle East ceasefire. Market participants are trying to gauge how much of an impact the conflict between Israel and Iran could have on asset prices, said Kyle Rodda. Senior financial market analyst for capital.com. The Australian stock exchange saw heavyweight miners gain 0.6%, as the iron ore prices rose, supported by a resilient steelmaking demand. BHP Group, a mining giant, rose by 0.2%. Rio Tinto, a miner of iron ore, rose by 0.8%. Information technology companies rose by 0.3%. Australian gold stocks rose nearly 1%, as investors sought safe havens due to the conflict between Israel and Iran. Financials were among the losers, with a 0.2% drop after traders locked up profits to prepare for increased market volatility. The "Big Four Banks" lost between 0.1% to 0.6%. Oil prices fell after hopes of a ceasefire eased concerns about a disruption in crude supply from the region. Woodside Energy, the oil and gas company that dominates Australia's energy sector, lost 0.4% of its value while Santos, a smaller rival gained 0.4%. This was a day after Woodside Energy received an offer for $18,7 billion from a consortium led by Abu Dhabi National Oil Company. New Zealand's benchmark S&P/NZX 50 Index was mostly flat at 12,703,25 points.
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Ecuador reopens the mining concession registry seven years after it was closed
The mining ministry of Ecuador announced Monday that it had launched a new register of concessions, the first in seven years. This was done to encourage more mining projects in the South American nation and to curb illegal activities. Since 2018, the previous registry has been closed due to concerns about irregularities in concession system. No new concessions were granted since then. Mining Minister Ines Manuelo said at a recent press conference that "regulation is needed to protect investments and promote responsible development with respect for the environment and communities." The Ministry will open the register in phases, starting with small-scale nonmetallic mining such as limestone or clay, which are used to make cement and ceramics. The second phase, which will be for small-scale metal mining, is scheduled to open in September. In 2026, the registry will be opened to other forms of mining. Manzano stated that the National Mining Cadastre will consolidate all information about mining concessions in a transparent and efficient manner. Reopening coincides new regulations for how to apply for permits in small-scale non-metallic mines. Manzano stated that "we have improved the regulations, and we will issue guidelines to enable the proper development" of the mining value-chain. In October, President Daniel Noboa who pledged to combat drug gangs, boost the economy and fight the drug trade, ordered the relaunch of the mining registry as part of an mining decree which includes measures to stop the spreading of illegal gold mines. Ecuador exports more than $3 billion worth of copper, gold, and silver. Due to the opposition of indigenous communities and negative court rulings, Ecuador has lagged behind countries in the Andean region such as Peru or Chile when it comes to large-scale mining. Noboa’s administration also proposed new fees for mining, causing a backlash among the mining chamber of the country. Carolina Jaramillo, a government spokesperson, told reporters on Monday that fees will be based on the size and type mining projects and that an open dialogue is being held with representatives of the sector. Reporting by Yury Garca in Quito, Daina Beth Solon in Santiago and Jamie Freed.
Trump's trade tariffs and threats
The President of the United States,
Donald Trump stated on Sunday that he was most concerned about securing a fair deal with China after his tariff policy had shook the consumer and business confidence around the world and caused a contraction in U.S. economy during the first quarter.
After the U.S. government held a series of meetings with its trading partners following Trump's April 2 announcement, there were signs of a possible de-escalation of the trade war.
10% Discount
On most countries, and suspend higher levies for 90 days on many trading partners.
On July 8, the duties will now be imposed.
He also levied 25% on autos and steel, and 25% on imports of Canada and Mexico, and 145% on China.
In his latest move Trump imposed a
Get 100% Discount
On movies made outside of the United States that are sent to the country.
Here's a summary of Trump’s trade-related actions and threats to date.
BROAD TARIFFS
Trump's vision is based on a gradual rollout of tariffs that will apply to all U.S. imported goods.
Trump's economics team was tasked with developing plans to impose reciprocal tariffs against every country that taxes U.S. Imports. They also had to address non-tariff barriers, such as vehicle safety regulations that exclude U.S. automobiles as well as value added taxes that raise their price.
Specific COUNTRIES
Trump's tariff proposal targets several key trading partners.
MEXICO AND CANADA : Mexico and Canada were the two largest trading partners of the U.S. from 2024 to November. Trump's new tariffs of 25% on imports from Mexico, Canada and the European Union took effect on 4 March as a response to migration and fentanyl.
Tariffs were imposed on energy imports from Canada and Mexico, as well as on the majority of goods imported. Canada exports mainly crude oil, other energy products and cars and auto components within the North American automotive manufacturing chain. Mexico exports a variety of goods to the U.S., including industrial and automotive products.
Canada retaliated with 25% tariffs against US imports worth C$30 billion (21,13 billion dollars), including orange juice and peanut butter. Other products include beer, coffee, motorcycles, appliances, and motorbikes.
The Canadian government said that it will impose additional duties on C$125billion of U.S. products if Trump's Tariffs are still in effect in 21 days. This could include vehicles, steel and aircraft, as well as beef and pork.
U.S. commerce secretary Howard Lutnick stated that U.S. officials could still work out a partial solution with the two neighboring countries, and added that they need to do more in the fentanyl arena.
In response to Trump's tariffs on steel and aluminum, Canada announced that it would impose retaliatory duties of C$29.8 Billion ($20 Billion) on U.S. imports.
The two countries are exempted from the "Liberation Day", announced on April 2 tariffs, but they face a separate 25% tariff on auto imports.
Canada has asked the WTO to consult with the U.S. about its import duties on steel and aluminum products as well as levies placed on Canadian cars and parts.
CHINA: Trump imposed 10% tariffs on all Chinese imports to the U.S. effective February 4, after repeatedly warning Beijing that it was not doing enough to stop the flow of illegal drugs into the U.S.
On March 4, he imposed another 10% tariff on Chinese products.
China announced additional tariffs between 10% and 15% on some U.S. exports starting March 10, as well as a number of new restrictions on exports for certain U.S. entities. It then complained to the WTO about the U.S. Tariffs.
Trump increased the tariffs on China by 34% in April, making the total to 54%. China responded with a 34% duty on all U.S. products.
Trump replied that the U.S. will impose an extra 50% tariff on China, if Beijing doesn't withdraw its retaliatory duties on the U.S. and said "all discussions with China regarding their requested meetings with the us will be terminated."
Washington's new round of tariffs raised duties on China to 145%. Beijing then increased levies against U.S. products by 125% as a result.
Trump has said that the EU, and other countries, have alarming trade surpluses against the U.S. He said that the products of the other countries will be subject to tariffs, or he would demand they purchase more oil and natural gas from the U.S.
Steel, aluminum, and cars will be subject to import tariffs of 25%, while other goods will face tariffs of up to 20%, starting April 9. Pharmaceuticals are among the most vulnerable industries, since U.S. companies such as Johnson & Johnson, Pfizer, and others have large facilities in Ireland. Ireland is also a leading exporter of medical equipment.
The European Union announced on April 7 that it had offered to offer a "zero for zero" tariff deal in order to avoid a trade conflict. EU ministers agreed to prioritise negotiations and to strike back with targeted countermeasures the following week.
In response to Trump's metals duties, the EU announced on March 12 that it would begin imposing counter-tariffs next month on goods worth 26 billion euros (28 billion dollars) from the United States. As a result of the U.S. auto and wider tariffs, the EU is expected to release a more comprehensive package of countermeasures at the end of April.
Trump announced on March 13 that he would slap 200% tariffs on European wines and spirits as a response to EU plans to impose tariffs next month on American whiskey, among other products.
PRODUCTS
AUTOS: Trump announced a 25% tariff for imported cars and light truck on March 26. The 25% tax would be added to previous duties on imported finished vehicles beginning on April 3.
On April 29, he issued a couple of orders that aimed to reduce the impact of his auto tariffs by combining credits with relief from other levys on materials.
The Republican President has given automakers two years to increase the percentage of domestic components used in U.S.-built vehicles.
Metals: On March 12th, Trump raised tariffs for all imports of steel and aluminum to 25% and extended duties to hundreds downstream products. These include everything from nuts and bolts, to bulldozers blades, to soda cans.
More than half of the U.S.'s aluminum and steel imports come from Canada, Mexico, and Brazil.
Trump ordered on February 25, a new investigation into the possibility of new tariffs on imports of copper to rebuild U.S. manufacturing of this metal, which is critical for electric vehicles, military equipment, semiconductors, and a variety of consumer goods.
Just over half of the refined copper that is consumed in the U.S. each year is produced domestically.
SEMICONDUCTORS : Trump stated that tariffs would start at "25% or higher" and would increase substantially over a period of one year. He did not, however, specify the date when they would be implemented.
Taiwan Semiconductor Manufacturing Co., the largest contract chipmaker in the world, produces semiconductors for Nvidia and Apple, among other U.S. customers. In 2024, it will generate 70% of its revenues from North American clients.
LUMBER: On March 1, Trump ordered a new investigation into trade that could add more tariffs to imported lumber. This would be in addition to the existing duties on Canadian Softwood Lumber and 25% tariffs for all Canadian and Mexican products.
ALCOHOL: Trump threatened on March 13 to slap 200% tariffs on wine, cognac, and other alcohol imported from Europe in response to an EU plan to impose tariffs American whiskey and other products. This is itself a retaliation for Trump's 25% tariffs that went into effect on steel and aluminium imports the day before.
PHARMACEUTICALS - While Trump's "Liberation Day' announcement spared the pharmaceutical sector from reciprocal duties, the president said that duties were "under review." He warned that the tariffs could be "at a new level you haven't seen before."
ELECTRONICS - Trump exempted smartphones, computers, and other electronics, mostly from China, from the steep tariffs. This was a relief to major technology companies such as Apple, Dell Technologies, and other importers.
This move exempts certain electronics from Trump's baseline 10% tariffs on most goods imported from countries other than China.
(source: Reuters)