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India's Bajaj Auto warns that magnet delays in China will affect EV production by July
Indian automaker Bajaj Auto warned on Thursday that further delays in the supply of rare-earth magnets from China may "seriously" impact electric vehicle production before July. China controls over 90% of the global processing capacity in magnets for automotives, home appliances and clean energy. In April, the country implemented restrictions requiring import permits to be obtained from Beijing. On Wednesday, it was reported that Indian auto industry associations have asked Prime Minister NarendraModi's government for help in gaining access to magnets stored at Chinese ports since the beginning of April. Rakesh Sharma, Bajaj Auto’s executive director, told analysts on Thursday during an earnings conference that he hoped exporters in China would approve the shipment of vehicles based on declarations made by their vendors. Sharma's remarks marked the first time that the implications of China's restrictions on exports of rare earth magnets could bring Indian auto production to an end. Rare earth magnets can be found in the electric motors of EVs, as well as in parts like power windows and audio systems used in conventional cars. Sharma called the current situation "a dark cloud in the horizon". He said that while the process of end-use declarations for non-military uses has been defined in India it is yet to be finished in China. Bajaj Auto produces electric scooters and electric three-wheelers under the "Chetak' brand. The "Pulsar", a motorcycle manufacturer, reported a profit for the fourth quarter that was above the market estimate. This was due to the fact that motorcycle exports were higher and the foreign exchange gained compensated for the slump in domestic demand. (Reporting by Nandan Mandayam in Bengaluru; Editing by Shilpi Majumdar)
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Copper gains after US Court puts brakes on Trump Tariffs
The market was buoyed by optimism on Thursday after a federal judge halted President Donald Trump’s plan to impose tariffs on most imports from the United States. The Court of International Trade, in a wide ruling issued on Wednesday, blocked the majority of Trump's import duties. It found that Trump had exceeded his authority when he imposed tariffs on all imports. Minutes later, the Trump administration filed an appeal notice and questioned the jurisdiction of the court. Ewa Mannthey, ING commodities analyst, said that copper rose because of the court's decision. Markets are likely to remain volatile while the administration continues to fight the ruling. The London Metal Exchange reported that the price of three-month copper was $9,576 per ton at 1435 GMT. This is a 0.1% increase. LME copper is up nearly 19% from its 17-month-low of $8,105 reached in April when Trump imposed the so-called reciprocal duties. A weaker dollar also supported the market, reversing gains made earlier, as investors prepared themselves for the battle over tariffs. The weaker dollar means that commodities priced in U.S. dollars are cheaper for buyers who use other currencies. Manthey, in discussing the outlook for copper noted that downside risks included prolonged trade negotiations and a reduced policy stimulus by China. He said that prices may benefit from possible reductions in refined copper production due to the ongoing shortage of concentrates. The market's attention was also focused on Washington’s ongoing investigation of potential copper import tariffs. This has kept the COMEX premium over the LME standard elevated, and sparked a surge in metal inflows to COMEX owned warehouses. . U.S. Comex Copper Futures increased by 0.1% to $4.71 a lb. This brings the Comex Premium over LME up to $803 a tonne. Cochilco, the Chilean state copper commission, has raised its forecasts for the average copper price this year and the next. They cited an improved outlook globally following the pause in tariff war between China and the United States. Other metals include LME aluminium, which fell by 0.4% to 2,458 per ton. Zinc also declined, falling 0.1% to 2,684, while lead dropped 0.9% to 1,965 and tin lost 1.4% to 31,205. Nickel rose 1.8% to $16,280. Ashitha Shivaprasad reports from Bengaluru. Editing by Joe Bavier and Mark Potter.
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NextDecade: JERA signs 20-year LNG Supply Deal
NextDecade, a U.S. producer of liquefied gas, announced on Thursday that it had signed a deal for supplying Japan's largest power generator JERA 2 million tonnes of LNG per year from the fifth liquefaction plant in its Rio Grande Project. Early trading saw NextDecade shares up 5.5% to $8.11. The United States will be the largest LNG exporter in the world in 2024. It is expected to ship 11.9 billion cubic foot per day. This has been boosted by President Donald Trump lifting a moratorium in January on new export licenses. NextDecade’s deal with JERA - Japan's largest LNG buyer - is conditional on a positive Final Investing Decision (FID) for the planned fifth liquefaction plant, or train. Japan is the second largest LNG buyer in the world. When LNG developers have secured enough supply agreements to secure the necessary financing to build, they will typically submit a FID. NextDecade is signing LNG deals with the Brownsville, Texas, facility which is currently under construction, and has an estimated capacity of 48 mtpa. This will help NextDecade to improve its position on the international market. The LNG producer signed agreements with the top oil producer Saudi Aramco, and TotalEnergies, to supply superchilled natural gas from the fourth facility of the project for a period of 20 years. Abu Dhabi National Oil Company announced last year that it had purchased a 11,7% stake in the phase 1 of NextDecade’s LNG project. This included the first three LNG liquefaction train and agreed on a 20-year deal to supply the fourth train. The deal follows another Japanese utility's announcement that it would sign a contract for 20 years with U.S. Energy Transfer, to purchase up to one million tons of LNG per year from the Lake Charles Project. Trump has threatened to impose tariffs on the exports of allies such as Japan and South Korea while encouraging them to purchase U.S. gas and oil. Ryosei Takazawa, Japan's chief tariff negotiator, will meet U.S. Treasury Sec. Scott Bessent in Washington on Friday for the fourth round in trade negotiations. JERA's spokesperson confirmed that the Japanese government had not asked the company to buy U.S. LNG. The deal was finalized in April after discussions began last year. (Reporting from Katha Kalia, Bengaluru. Additional reporting by Yuka Obaashi, Tokyo. Editing by Shailesh Kumar and Mark Potter.
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Syria signs $7 Billion Power Deal with Qatar's UCC Holdings-led consortium
UCC Holding said that Syria had signed a Memorandum of Understanding with a group of international companies, led by Qatari UCC Holding, to develop large power generation projects. The foreign investment is estimated at $7 billion. The agreement calls for the construction of four combined-cycle power plants, with a capacity totaling 4,000 megawatts. It also includes a solar power plant of 1,000 MW in southern Syria. The deal was signed in Damascus by the Syrian Energy Minister Mohammed al-Bashir in the presence both of the Syrian President Ahmed al-Sharaa, and the U.S. Envoy for Syria Thomas Barrack. Construction will begin following the financial close and final agreements. The gas plant is expected to be completed in three years and the solar plant within two years. The projects will provide more than 50% of Syria's electrical needs once they are completed. Syria's electricity industry has suffered from 14 years of conflict, including severe damage to the grid and power plants, an aging infrastructure and persistent fuel shortages. The sector now generates only 1.6 Gigawatts (GW) of electricity compared to 9.5 GW in 2011. The reconstruction of the power sector will cost approximately $11 billion. The new administration has decided to rely on the private sector for the financial burden. This is a departure from the economic policies that were led by the government during the Assad era. Ramez Alkhayyat, CEO of UCC Holding, said that the projects would be financed by regional and international banks in addition to the capital investment from partners. The CEO of UCC Holding said that they are expected to create 250,000 indirect and 50,000 direct jobs during the execution. Doha, which is one of the most ardent opponents of Bashar Al-Assad in the region and a supporter of the rebels turned rulers that replaced him, has now positioned itself to play an important role in Syria's rebuilding, alongside Turkey.
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Poland reduces household gas prices and increases the chances of lower interest rate
The Polish energy regulator has reduced the gas prices charged by wholesaler PGNiG to households, hospitals and schools as well as vulnerable users such as schools and hospitals by 14.8%. This increases the chances of further interest rate reductions. The regulator, URE said that gas distribution fees will remain the same, resulting in average bills dropping between 8.1% to 11%, depending on consumption volume. The regulator sets the gas prices for household use, and this has a significant impact on inflation. The main reason for the central bank's hesitation to reduce interest rates was uncertainty over energy prices. ING economists stated on X that the reduction in gas prices could lead to an inflation rate of 2.5% in July. The central bank might also cut interest rates further. The minimum scenario is "Our current scenario, which assumes 75 basis points by the end the year and 3.75% by 2026." Currently, the rate is 5.25%. (Reporting by Marek Strzelecki and Anna Wlodarczak-Semczuk. Mark Potter edited the article.
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Investors assess tariff roadblock as they halt the dollar and stock rally
The initial rally in the markets following the court ruling blocking President Donald Trump's "Liberation Day Tariffs" lost momentum on Thursday as the markets assessed the uncertain future. The Manhattan-based Court of International Trade has ruled that Trump exceeded his authority when he imposed his April 2, 2018 tariffs on all imports from U.S. Trading Partners. The White House appealed this decision and could even take it to the Supreme Court, if necessary. In the meantime, the White House's appeal offered some hope that Trump would back down from the highest tariff levels which he had previously threatened. The ruling may also encourage U.S. trade partners to suspend any negotiations with the White House in order to wait for the outcome of the case. Goldman Sachs analysts noted that while the court order did not prohibit sectoral tariffs, there were still other legal avenues that Trump could use to impose tariffs across-the board and by country. Stock markets initially rose on Thursday but then fell as investors digested news and data that showed U.S. Weekly Jobless Claims rising more than expected. The STOXX 600 Index in Europe was up by 0.1% after a 0.5% rise earlier. S&P futures were up 0.8% after earlier gains of as much as 1.8% on Thursday. Nasdaq Futures rose 1.3% after earlier benefiting from Nvidia's earnings, which exceeded sales expectations. Michael Brown, Senior Research Strategist at Pepperstone said: "I believe the pared-down gains are mainly because the ruling does not change fundamentally." While the tariff journey may have changed, for many the endgame and destination hasn't. The FTSE 100 Index in Britain, meanwhile has largely ignored the news, and last closed flat. Is this a signal that the stock markets of countries that have managed to strike trade deals with America in recent weeks could suffer if tariffs were reversed? This is a trend to keep an eye on in the short term," said Kathleen Brooks at XTB. The Financial Times reported that Britain was the first nation to sign a trade agreement with the U.S. It will be holding talks with Washington to accelerate the implementation of this deal next week. In Asia, the Nikkei soared 1.9% in Japan, while South Korean stocks climbed 1.9% at a record high for nine months. Chinese blue chips firmed 0.6%. DOLLAR RALLY FADES The court's decision first hit the traditional safe-haven currencies that have benefitted from the tariff fears punishing U.S. dollars. The dollar had earlier gained nearly 1% against Japanese yen, but has since fallen by 0.2%. After an earlier rally, it was down by 0.2% against Swiss Franc. The euro was also a beneficiary of the dollar's woes. It dropped by as much as 0,7% but ended up with a 0.4% gain against the U.S. Investors were unnerved after Trump's tax and spending bill. Treasury yields initially rose, but then fell to trade at a flat rate. The yields on 10-year Treasuries were at 4.48%, as the markets continued to doubt that a Federal Reserve rate reduction would be imminent. The 30-year-old yields have fallen from the closely monitored 5% level to 4.98%. The minutes of the Fed's last meeting show that "almost everyone commented on the possibility that inflation may prove to be persistent longer than expected" because of Trump's tariffs. Rate cuts in July are now around 20%, and September is around 70%. This is after the month prior, when rates were more than fully priced. Gold was down 0.7% on the commodity markets to $3,313 per ounce. The oil price initially rose, then fell, as investors waited for a decision by OPEC+ to increase production in July. Meanwhile, the U.S. banned Chevron from exporting Venezuelan Crude. Brent fell 0.1% to $64.85.
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TenneT Begins Drilling Under Dunes for Laying Electricity Cables on Maasvlakte
In the coming years, grid operator TenneT will bring wind energy from the sea to land on the Maasvlakte. To enable the landing of these electricity cables, contractor NRG started six drillings under the dunes May 26. Three more will follow after the summer. In recent days, NRG has made the necessary preparations both inside the dike and on the beach. The electric drill is making a horizontally directional drilling over a distance of approximately 200 meters towards the beach. An empty plastic casing will be placed in that borehole, into which the electricity cable will later be pulled.In order to connect such an unmanned platform at sea to the high-voltage grid on land, a 525,000 volt cable system is buried in the seabed.NRG carries out the horizontal (via GPS) directional drilling in three steps. “First, they use the electric drill to make a so-called pilot drilling from the work area behind the dunes to the beach," said Robert Wijnholds, on behalf of TenneT. "The drilling team then pulls a reamer through the drilling to make the hole bigger. During the third and final step, the reamer is connected to a casing pipe with a diameter of almost half a meter and then pulled back.”The sea cables will be installed next year and will be laid meters deep in the beach. Behind the dunes, they will be connected underground to the electricity cables that are currently being laid in the ground on land. TenneT has placed an information point on the Noordzeeboulevard—within walking distance of car park P3—near the drill. From the roof, visitors have a perfect view of the work.
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US authorities arrest Mexican immigrant accused of threatening to shoot Trump
The U.S. Department of Homeland Security announced on Wednesday that U.S. Immigration authorities arrested an immigrant from Mexico who had allegedly threatened President Donald Trump with a gun. According to DHS which published a picture of the letter, Ramon Morales Reyes (54), allegedly wrote a letter to a U.S. Immigration and Customs Enforcement agent stating that he was going to "shoot [your precious] president in the head" at a rally. Morales stated in his letter that ICE was deporting members of his family, although he didn't mention anyone by name. The letter states: "We are tired that this president is messing with us Mexicans. We have done more to help this country than white people." Trump was the target of two assassination efforts during his presidential campaign in 2024, including a shooting at a rally held in Butler, Pennsylvania. Both of the suspects were U.S. Citizens. In a recent statement, Homeland Security Secretary Kristi Nöem stated that "all politicians and media members should take note of these repeated attacks on President Trump's lives and tone down their language." DHS reports that Morales illegally entered the U.S. at least nine different times between 1998 and 2005. DHS reported that he had been arrested for a hit-and run felony and other crimes. DHS reported that he is being held in Wisconsin by ICE and awaiting his deportation. (Reporting and editing by Mary Milliken, Deepa Babington and Ted Hesson)
Investors buy gold dips ahead of Fed meeting minutes
Investors bought gold on Wednesday after it had fallen in the previous session. Markets awaited the minutes of the Federal Reserve’s latest policy meeting, as well as economic data to get an idea about the U.S. rate outlook.
As of 0853 GMT, spot gold rose 0.6%, to $3,320.58 per ounce. Bullion dropped below $3,300 and reached a low level of $3,285.19 during the previous session.
U.S. Gold Futures increased 0.6% to $3319.50.
Jigar Trivedi is a senior commodity analyst with Reliance Securities. He said that the gold price has rebounded mainly because of bargain hunters after a sharp fall in the previous session.
The markets are also in an "await-and-watch" mode, prompting adjustments to positions.
The markets are waiting for the minutes of the Federal Reserve’s newest policy meeting, which is due in the afternoon, and then the U.S. PCE figures for April due on Friday. This week, a number of Fed officials will be speaking to provide further insight into monetary policies.
Han Tan, Exinity Group's chief market analyst, said that gold could rise on the back of lower-than expected PCE prints which ease stagflation concerns and pave the way for further Fed rate cuts.
John Williams, the New York Fed president, said that central banks need to "respond fairly strongly" if inflation starts to diverge from their target.
The Fed's policy rate has been at 4.25% to 4.50% since the end of December. Officials are waiting for more clarity on the economy, while policymakers also deal with the market volatility brought about by President Donald Trump's changing remarks regarding negotiations with trading partners.
Tan stated that gold may eventually break out of the range $3,000 to $3,500 once the Fed signals a greater willingness for it to resume the rate-cutting cycles.
Silver spot rose by 0.1%, to $33.34 per ounce. Platinum gained 0.8%, to $1,087.97, and palladium climbed 0.1%, to $979.57. (Reporting by Anushree Mukherjee in Bengaluru; Editing by Joe Bavier)
(source: Reuters)