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Pirelli: Talks over dispute with major shareholder ended without agreement
The Italian tyremaker Pirelli announced on Wednesday that the talks to repair relations with Sinochem, its largest shareholder in China, ended without any breakthrough. Pirelli, and its second-largest shareholder, Italy's Camfin have claimed that Sinochem's stake in the company is hindering Pirelli's ambitions for expansion in the United States. Some lawmakers there are against projects backed by Chinese firms. Pirelli stated in April that Sinochem no longer controls the company because of the Italian government's decision to "golden power" the company by 2023. Sinochem, however, denied this claim. Pirelli announced on Wednesday that "the proposals extended to Sinochem by Pirelli have in fact been rejected" following negotiations. The proposal was not detailed. Camfin supported the firm's strategic decision in a Wednesday statement, adding that, "should the situation with Sinochem continue to be unresolved, Camfin will be forced to evaluate the impact of such behavior on Pirelli and shareholders' agreement." Pirelli generates over 20% of its revenue in North America. The company reported a profit of 313.4 million euros for the first quarter, up 6.5% on last year. This was higher than analysts' expectations of 270 millions euros. Pirelli, which is the sole supplier of Formula One tyres, confirmed its guidance for 2025, but warned that, if current U.S. tariff policies continue, it's adjusted EBIT would likely be at the lower end.
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Enel, Leonardo and Ansaldo Energia join forces on nuclear energy research
They announced on Wednesday that Enel, Leonardo, and Ansaldo Energia, all of which are part of the Italian power group, have formed a new company to research nuclear technologies for the next generation. Enel holds a 51% share in Nuclitalia. Ansaldo Energia has 39%, and Leonardo 10%. The three partners released a joint press release that said: "Nuclitalia is responsible for assessing the most innovative designs and mature designs in new sustainable nuclear energy, with an initial emphasis on water-cooled modular small reactors." Gilberto Pichetto Fratin, the Italian Energy Minister, said that nuclear power, as well as renewable sources, could help reduce energy costs for the country. In February, the Italian government approved a law allowing a return to nuclear power almost 40 years after its ban by referendum. Analysts believe it will take at least a decade for atomic energy to return. Nuclitalia's chairman will be Ferruccio Resta, former head of Milan’s Politecnico technical university, and Enel’s Luca Mastrantonio will serve as its chief executive. Mastrantonio is Enel’s head of nuclear innovations. (Reporting and editing by Gavin Jones, Barbara Lewis, and Francesca Landini)
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Pirelli: Talks over dispute with major shareholder ended without agreement
The Italian tyremaker Pirelli announced on Wednesday that the talks to repair relations with Sinochem, its largest shareholder in China, ended without any breakthrough. Pirelli, and its second-largest shareholder, Italy's Camfin have claimed that Sinochem's stake in the company is hindering Pirelli's ambitions for expansion in the United States. Some lawmakers there are against projects backed by Chinese firms. Pirelli stated in April that Sinochem no longer controls the company because of the Italian government's decision to "golden power" the company by 2023. Sinochem, however, denied this claim. Pirelli announced on Wednesday that "the proposals extended to Sinochem by Pirelli have in fact been rejected" following negotiations. The proposal was not detailed. Pirelli generates over 20% of its revenue in North America. The company reported a profit of 313.4 million euros for the first quarter, up 6.5% on last year. This was higher than analysts' expectations of 270 millions euros. Pirelli, which is the sole supplier of Formula One tyres, confirmed its guidance for 2025, but warned that, if current U.S. tariff policies continue, it's adjusted EBIT would likely be at the lower end.
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World hunger monitor faces 'large gap' after US aid cuts
FEWS NET, a global hunger monitor backed by the US, provided crucial data FEWS NET is now operating with reduced capacity Early warning alerts from FEWS NET helped to direct targeted aid Nelson Renteria & Nita Bhalla Treminio, armed with the public bulletins as well as regular alerts on food security produced by the Famine-Early Warning Systems Network (FEWS NET), would pass the crucial data to farmers. It was funded by USAID, the United States Agency for International Development. Since President Donald Trump's January order to freeze USAID spending, it has operated at a drastically reduced capacity. It's a vital early warning tool," said Treminio. He is the head of the Salvadorian Chamber of Small and Medium Agricultural Producers (SMAAP), an association of 125,000 growers of corn, beans sorghum and riz. He said: "I think that producers would suffer worse losses if the early warning alerts of the program were to disappear." FEWS NET provides weather and drought monitoring six to twelve months ahead to help farmers plan their planting schedules. The FEWS NET Program has been moved to a new site under the U.S. Geological Survey. However, the information is limited. This is a blow for those who depended on this service. From local farming associations to international aid groups and governments to policymakers and government officials. 'LARGE GAP' USAID's cuts have had a significant impact on humanitarian organizations working in the field, from HIV/AIDS health care and land demining to food aid. FEWS NET, created by the U.S. Government in 1985 in response to devastating famines that ravaged East and West Africa in 1985, has been a valuable resource for humanitarian organizations deciding how and where to distribute aid. Chemonics International (which manages FEWS NET) received a stop work order from USAID on January 27. Two days later the original FEWS NET website was offline. Mike Budde is the USGS FEWS NET Program Manager. He says that work is in progress to make sure the website is fully functional, but this will take time. He said that the website's resources were lacking. We are currently coordinating with our entire science team in order to make some of the previously published information available on this site. Early Warning Reports Food security experts in Africa and humanitarian workers say FEWS NET is indispensable for humanitarian and development work, providing data-driven insight into food security, climate impact and emerging crises. They said that the regular assessments and early-warning reports enable aid workers to anticipate acute food insecurity and respond accordingly, particularly in areas of East and West Africa affected with drought, conflict, and economic shocks. FEWS NET, for example, has been able to identify and prioritize interventions in vulnerable communities during times of drought and conflict by integrating data on climate, crop conditions, and market analysis into its monthly and seasonal forecasts. It ensured that the most vulnerable people received assistance before the situation escalated to a full-blown emergency. Tinebeb Berhane is ActionAid's Country Director for Ethiopia. She said: "FEWS NET has a comprehensive approach... that supports ActionAid Ethiopia in developing holistic responses to crises." The network's recommendations are used by many NGOs, government agencies and international agencies to coordinate humanitarian planning and policy actions. Berhane stated that by leveraging FEWS NET’s robust early-warning systems and localized information, her organization was able to strengthen its anticipatory actions and contribute to effective, focused and lifesaving assistance for vulnerable population. Erin Lentz is an associate professor at The University of Texas at Austin's LBJ School of Public Affairs and an expert in international food security. She said FEWS NET "is trying to do better early alert, how to think holistically about these things." She said, "That is hard and requires a lot training. Understanding global economic factors and the ability to think of how these things directly affect people's lives, and livelihoods, are required." Lentz says that FEWS NET's early warnings and analyses of food insecurity helped to address a famine which occurred in Somalia in 2011. They also contributed to averting a second famine, which took place in Somalia in 2017. "One of the problems is that trend analysis is one of the most valuable aspects of early warning - is it getting better or worse?" Lentz said. She said, "It is difficult to reconstruct data retrospectively."
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Dollar softens as global shares rise amid tariff truce
Global shares and Wall Street rose on an ease in trade tensions, while the U.S. Dollar extended its losses after benign U.S. Inflation data kept Federal Reserve rates on hold. The U.S. China trade truce has dimmed the appeal of gold as a safe-haven. After four sessions of gains, European shares slowed down. Asian shares gained. The MSCI index of global stocks rose by 2.24 points or 0.26 percent to 873.44. Investors have driven global equity markets higher as a truce between China and the United States in their tariff spat appears to be putting a pause on the global trade conflict, even though European shares took a break on Wednesday. Lars Skovgaard is a senior investment strategist with Danske Bank. He added, "I find it hard to believe that we will return to the extreme political noise." Wall Street saw the Dow Jones Industrial Average rise 64.35 points or 0.15% to 42,204.78. The S&P 500 rose 0.04 points or 0.04% to 5,888.81, and the Nasdaq Composite climbed 72.27 points or 0.38% to 19,082.35. The STOXX Europe 600 Index has retreated, after it had risen over 17% from its low on April 9, when U.S. president Donald Trump announced that he would suspend most reciprocal tariffs against U.S. trading partner. The MSCI broadest Asia-Pacific share index outside Japan closed up 1.56% to 614.33, while Japan's Nikkei dropped 55.13 points or 0.14% to 38,128.13. The Topix broader index snapped its longest winning streak in 16 years, a run of 13 days. Hong Kong's Hang Seng index rose, lifted by technology stocks after Chinese online retailer JD.com announced strong results. Tencent, China’s largest tech company, reported a 13% increase in revenue for the first quarter on Wednesday. This week, the focus will be on Alibaba's earnings on Thursday. Investors who were worried about inflationary effects of U.S. Tariff Policies, which severely undermined expectations of Fed rate reductions in the near term, also found some relief from data on Tuesday that showed softer than expected U.S. Consumer inflation. Although traders expect the inflation rate to rise as tariffs increase import costs, there is still uncertainty about the future as Washington continues to negotiate with its trading partners. Wei He is a China economist with Gavekal. He said that the U.S. tariffs against Chinese products are still higher than a few months ago. There's still a lot of uncertainty in the future. In an interview with CNN on Tuesday, Trump said he would be willing to deal directly with Chinese President Xi Jinping over the details of a new trade agreement. The "potential" deals that Trump has been touting with India, Japan, and South Korea have not yet materialized. Assessing Tariff Impact The Fed warned of increasing economic uncertainty and indicated that it was prepared to wait until the U.S. Tariffs are fully assessed before reducing interest rates. Jerome Powell, the Fed chair, is set to make remarks on Thursday. The U.S. Dollar, which has been beaten recently by the uncertainty in the economy and policies, dropped 0.24% versus a basket including the yen, the euro and other currencies. Bank of America’s Global Fund Manager Survey (FMS) revealed on Tuesday that global asset managers had their largest underweight position against the dollar in nearly 19 years as Trump’s trade policy reduced investor appetite for U.S.-based assets. The euro rose 0.25% to $1.1212. Investors weighed the April inflation data, which was lower than expected, against expectations of higher tariffs in the future months. Euro zone yields Then retreated. Retail sales data for the month of April, due Thursday, will be a major indicator for U.S. economy health. On the same day, Russia and Ukraine will hold talks in Istanbul in hopes of reaching a ceasefire after three years in Europe's deadliest conflict since World War Two. The rising U.S. stockpiles of crude oil have pushed down prices in commodities. Brent crude futures dropped to $66.07 a barrel, a drop of 0.84% for the day. U.S. crude oil fell by 0.91%, to $63.09 per barrel Spot gold dropped 1.96%, to $3.183.69 per ounce.
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Ukraine Finance Minister: country strong despite "financial gaps"
Serhii Marchenko, Ukrainian Finance Minister, said that there is a financial gap in the budget of Ukraine for next year. However, he added that Ukraine was stronger than a year earlier and able to continue defending itself. Marchenko said that the recent mineral deal signed between the United States and Ukraine could also help Washington to better understand Ukraine. He said that the United States had made "very good progress" in strengthening their relationship. This was during a panel at the annual meeting for the European Bank for Reconstruction and Development held in London. I hope that it will definitely bring investment to Ukraine. Ukraine's relationship with Donald Trump has been turbulent. He had promised, upon taking office in January, to bring an end to the Russian war quickly. On Thursday, peace talks will take place in Turkey, but it's unclear if Trump, Russian president Vladimir Putin, or Ukrainian president Volodymyr Zelenskiy will be attending. Marchenko stated that Ukrainian officials worked with U.S. officials in order to demonstrate their "eagerness" and "respect for the United States." He said: "It's in our best interest to find - I emphasize all possible methods - to work with the United States to help resolve this conflict."
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Senator says that the US Department of Health will reverse the federal layoffs for coal safety workers
Shelley Moore Capito, West Virginia Republican senator and former federal employee who screens coal miners for black lungs disease and conducts research on other respiratory diseases who were terminated in a sweeping government layoff have their jobs permanently restored. According to an email sent to employees by the Department of Health and Human Services on Wednesday, they make up a significant percentage of 313 workers who were notified by the Department that their layoff notifications were rescinded. NIOSH has nearly 1,500 full-time employees in eight offices throughout the world. United States Capito stated in a press release that Robert F. Kennedy Jr., the Secretary of Health and Human Services, had assured her that HHS reversed terminations at the NIOSH facility located in Morgantown West Virginia. In a press release, she stated that "my understanding is from Secretary Kennedy that over 100 Morgantown workers will return to their jobs permanently." NIOSH operates a coal mine surveillance unit, which has been effectively closed since February due to sweeping layoffs by Elon Musk’s Department of Government Efficiency. This is despite the fact that black lung disease, a deadly respiratory condition affecting coal miners of all ages - including those in their 30s - continues to recur. Reports had stated that these potential job cuts as well as the cuts made at the Mine Health Safety Administration put miners in danger, even though President Donald Trump was calling for a revival of coal. Status of NIOSH employees has been changing. Some workers were brought back from administrative leave in the beginning of this month, only to find out a few days later that their employment was terminated permanently. Capito stated that she spoke with Kennedy several times, urging him to keep the coal worker surveillance program. According to internal emails, the agency intends to continue with the majority of its planned layoffs despite the return of some NIOSH workers to full-time employment. John Howard's director sent a letter to NIOSH staff on Tuesday, stating that he was calling back some terminated employees. This included employees from the Respiratory Health Division, which includes the coal mine monitoring unit, the National Personal Protective Technology Laboratory, the Division of Safety Research, and the Division of Compensation and Analysis Support. The World Trade Center Health Program also employs 15 full-time staff to provide support for 9/11 first responders who are ill. Two sources familiar with the story said that 18 of 28 DECA staffers who handle compensation claims for former nuclear workers who have cancer were also brought back. Kennedy will appear before Congress on Tuesday, and he's likely to be asked about the mass layoffs that occurred at HHS.
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Gold prices drop to a new low after trade optimism increases
The gold price dropped by more than 2%, reaching a new low of over a month, as investors shifted away from bullion due to rising risk appetite. As of 1011 ET (14.10 GMT), spot gold fell to its lowest level since April 11 and dropped 1.8% to $3.188.52 per ounce. Bullion dropped as low as $3.174.62 in an earlier session. U.S. Gold Futures declined 1.7% to $3192.80. Tai Wong is an independent metals dealer. He said, "The global relief rallies sparked by steep reductions in U.S. - China tariffs have triggered a corrective movement through technical levels of gold." Wall Street's major indexes began higher on Monday, with the deal over tariffs and expectations for more trade agreements driving their gains. Washington and Beijing have agreed to drastically reduce tariffs and adopted a 90 day pause as the details are worked out. In an interview with CNN on Tuesday, Donald Trump said he would be willing to negotiate directly with Chinese President Xi Jinping about the details of a new trade agreement. He said "potential deals", with India, Japan and South Korea are in the works. Last month, gold, a precious metal that is considered a safe place in times of economic and geopolitical turmoil, reached a new record of $3,500.05. Prices have risen by 21.6% this year. Fawad Rasaqzada is a market analyst for City Index and FOREX.com. He said: "While the trend in the long term remains bullish, it wouldn't surprise me if the momentum continued to be bearish for a couple of more days." The first target for the downside is $3,136. Next, it's $3,073 then $3,000, and finally, the biggest level. After softer than expected consumer data, traders are now waiting for the U.S. Producer Price Index (PPI) to be released on Thursday. This will provide clues as to the Federal Reserve's policy direction. As a zero-yielding investment, lower interest rates make bullion more appealing. Silver spot fell by 1.8%, to $32.29 per ounce. Platinum dropped 0.5%, to $983.42. Palladium increased 0.1%, to $957.65. (Reporting by Sarah Qureshi in Bengaluru; Editing by Tasim Zahid)
EU prepared to slow down in US trade negotiations in pursuit of a bigger deal
Scott Bessent, the U.S. Treasury secretary, said this week that Switzerland and Britain were in the lead for a deal with the United States. He warned the European Union to move "much more slowly". Brussels isn't too worried.
The EU believes that its size is an advantage when it comes to trading. Senior EU officials claim that as one of the top three economies in the world, the EU won't back down and is looking for a better trade deal with Washington.
The clock is ticking. The EU is trying to prevent a trade relationship worth $1.7 trillion from escalating into a full-blown war of transatlantic trade.
"We don't feel weak. "We do not feel that we are under excessive pressure to accept an agreement, which would be unfair for us," EU trade chief Maros Sfcovic stated last week.
Sefcovic spoke before Bessent's remarks in Geneva. Washington and Beijing had agreed to cut tariffs by over 100%, and halt their trade war. The stance of Brussels remains unchanged.
If negotiations fail during the 90-day pause, additional "reciprocal tariffs" -- totaling a combined 20 percent in the EU case -- are planned.
The threat of further tariffs also includes pharmaceuticals, semiconductors and critical minerals as well as lumber and trucks.
EU trade officials who have been involved in the Washington negotiations say that they are having difficulty understanding President Donald Trump's goals for trade.
The European Commission's Ursula von der Leyen, who is the President of the European Commission, has yet to meet Trump in a formal setting since Trump reclaimed his presidency as president of the United States in January. They only exchanged words briefly during Pope Francis’s funeral at Vatican.
Trump later praised von der Leyen as "fantastic", and added "I hope that we will meet." She replied: "If I'm going to the White House I want a package that we can discuss."
Her comments reflect Europe's desire for a comprehensive trade deal, and not one that is a quick win in politics but has a limited scope. This was the case with the Washington-London agreement.
Tough Talks
According to US data, the EU-US trade volume is six times greater than that of US-UK. Europe believes that its weight counts in negotiations.
"I'm not sure that the EU is going to have to adopt any template," Lithuanian Finance Minister Rimantas Sazius said on the sidelines a meeting of EU finance ministers.
Eurointelligence analysts pointed out that the EU needs to prepare for discussions that go beyond trade. White House officials said that Europe must lower non-tariff trade barriers, such as those created by the value-added taxes and regulations governing food and automobile safety.
If the EU is to progress in this field, it might need to reconsider its approach. Eurointelligence's briefing note stated that Maros Sfcovic could only speak about trade in its narrowest sense. "He cannot even promise to lower the regulatory barriers."
Washington appeared to ignore the value-added (VAT) tax, which Trump has referred to as a trade barrier in its agreement with London. Britain did not reduce its digital services tax or loosen food standards on beef imports. Both of these were criticised by Washington.
Washington and Brussels have had a difficult time negotiating so far.
Christian Kohlpaintner, CEO of German chemicals company Brenntag, said that he thought the EU handled negotiations "very sensibly".
He told reporters in an earnings call Wednesday that the 90-day period is a "sedative." "But not (a cure) that provides clarity on the future development in the markets."
Simon Evenett is a professor at the IMD Business School. He said that the US-UK agreement and Washington's truce in Beijing indicated that a 10% general tariff and 25% for specific sectors was the baseline.
He said that Wall Street’s reaction would be able to tame excessiveness, after Trump was convinced by Wall Street’s reaction. This could help to contain any U.S.-EU trade conflicts, as broader trade and investments ties are valued at $9.5 trillion per year.
It could take a long time and be very difficult. "I can see the EU facing tariffs and a deadlock," he said. (Reporting and editing by Toby Chopra; Additional reporting by Ozan Masoni in Milan, Danilo Ergenay at Gdansk; Reporting by Philip Blenkinsop)
(source: Reuters)