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Sources say that Sumitomo funds the Ambatovy stake sales to exit the project.
Three sources with knowledge of the matter said that Sumitomo Corp provided financing to buyers of its 54% stake in Madagascar’s Ambatovy Nickel operation. This helped the company exit the losing project. Three sources familiar with the matter said that Sumitomo Corp, which invested $3 billion over 20 years in Ambatovy and has incurred $2.5 billion cumulative losses, provided financing to buyers of its 54% stake in Madagascar's Ambatovy nickel operation, smoothing their exit from the loss-making project. Sumitomo funded this transaction, while still retaining certain nickel offtake rights. "It needed someone to solve the problem for them," said one source. The source stated that some of the money would be used to repair the damage caused by the cyclone to Ambatovy facilities. The source said that production has been suspended since the beginning of February, and will resume by June. Sources did not give any other details about the funding. Jason Kluk, former Glencore nickel trader, and South Africa’s Zungu Investments are acquiring a 54% stake, subject to the transaction closing by September 30. Korea Mine Rehabilitation and Mineral Resources Corporation holds the remaining 46%. Sumitomo declined comment on any financial arrangements but stated that the deal is intended to ensure "the continuation and sustainability of Ambatovy's operation under new ownership". The $418 million hit was a result of "a comprehensive economic evaluation of the transaction". Kluk and Zungu Investments did not respond to any requests for comments. A second source stated that the deal structure is similar to vendor financing where a seller funds a buyer. The?source said that Ambatovy will face a challenge in becoming profitable, pointing out that Sumitomo has struggled to improve margins and stabilise production for years despite having the resources. The surge in sulphur costs since the beginning of the Iran War three months ago has put pressure on margins. Ambatovy will produce 28,000 metric tonnes of nickel, and approximately 2,500 tons cobalt by 2024. (Reporting and editing by Polina Devtt and Pratima Dasai. Mark Potter edited the story.
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Italian study finds antibiotic resistance genes in the world's oceans
According to the findings of an Italian-led project that analysed seawater samples from around the world, genes linked to resistance to antibiotics are present in multiple?ocean areas, including remote waters. The SeA ?Care project found ?antibiotic-resistance ?genes in the Mediterranean, Atlantic, Arctic and other regions, with higher concentrations detected near busy shipping routes and densely populated coastal areas. Researchers said that the results show oceans are a global reservoir of pollution from land. They carry genetic traces of antibiotic use and urban discharge far away from their source. Researchers added that this could facilitate their spread to remote communities. The study was presented on Monday in Rome at a forum hosted by the Italian?National Health Institute. (ISS) on ocean and human healthcare. It also detected microplastics and PFAS "forever chemical" as well as traces of 'SARS-CoV-2 DNA in remote areas and open ocean waters. Andrea Piccioli, ISS Director-General, said that protecting human health in the 21st century means protecting the oceans and seas. She added that pollution released into the atmosphere is redistributed worldwide through the water, food, and climate systems. SeA 'Care, an initiative led by Italy, links the environment and human health. The system brings together institutions such as the Italian Navy, ISS and international research centres in order to create a global monitoring?system. The project uses existing routes for collecting samples and scientific networks during routine missions to reduce costs and impact on the environment. In the first three years of its existence, over 4,000 samples of?seawater were collected in 140 locations across the Mediterranean Sea, Atlantic Ocean, Pacific Ocean, Arctic Ocean and Indian Ocean. Scientists claim that the project shows 'how oceans can be used as an early warning system to detect global health risks. It supports policies aimed at combating pollution, climate changes and emerging threats for human health. (Reporting and editing by Crispian B. Balmer, with Emilio Parodi)
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AMBER BID AMERICAS - Chip chill, war heat, and jobs
What's important in the U.S. and Global Markets Today By Mike Dolan. Editor-at-Large for Finance and Markets Wall Street holds its breath following Friday's withering selloff in the chip sector, as tech stocks fell sharply on Monday. The red-hot chip stocks were slowed down by the?disappointment of Broadcom's earnings last week, a loss in momentum after S&P 500's nine-week winning streak ended, and a rise in Fed rate-hike betting following Friday's strong May payrolls report. Below, I'll go into more detail. Listen to the Morning Bid podcast. Subscribe to the Morning Bid daily podcast and hear journalists discussing the latest news in finance and markets seven days a weeks. CHIP CHILL JOBS HEAT WAR The SOX index fell 10% just on Friday, Broadcom was down 20% in two days, and the broader Nasdaq dropped?4% as we head into the weekend. Futures were attempting to gain a foothold on Monday morning, but the tech-heavy Asia markets plunged, and Europe's STOXX600 fell to a two-week low. Iran and Israel exchanged direct missile strikes for the first since April over the weekend, causing crude oil prices to rise by over 4%. This heightened expectations of rate hikes. The markets now expect a rate hike to occur by the end of the year, and possibly two. Treasury yields have risen again. All of this led to President Trump fighting multiple fires at the weekend. He urged against interest rate increases and renewed calls for reductions instead. Despite his repeated calls for Israel to refrain from retaliating against the Iranian strikes on Sunday, his request was ignored. Fresh fighting has dampened hopes for a comprehensive deal to free up oil. As equity markets reset as they absorb all the new data, they are also preparing for the massive SpaceX IPO that is expected to take place on Friday. Analysts believe the IPO wave expected this summer will be countered by a record-breaking pace of buybacks. However, the concern is that a parallel equity financing wave by so-called hyperscalers could occur amid the massive AI investment buildout. Alphabet recently announced new equity sales of $80 billion. Meta may follow suit. In Europe, the markets are preparing for a much-anticipated rate hike by the European Central Bank on Thursday. The dollar has risen against the euro despite this. Chart of the Day The U.S. Economy posted a strong third month in a row with job gains. Payrolls increased by?172,000 which was more than double what had been?forecast. The economy added 93,000 jobs more in March and April compared to what was previously forecast, and the unemployment rates remained at 4.3% for another month. Over the past three months, employment gains have averaged 188,000 per month. This is nearly triple what it was in 2025. The concern about overheating is based on estimates that the economy must create between zero to 50,000 jobs per month to match the growth of the working-age populace - the so-called breakeven ratio, which has been dramatically reduced by the crackdown against immigration in the last year. Watch today's events * U.S. Conference Board Employment Trends Index, May (10 am EDT) Want to receive "the Morning Bid" in your email every morning? Subscribe to the newsletter. Follow us on LinkedIn, X and ROI. The opinions expressed by the author are their own. These opinions do not represent the views of News. News is a non-partisan organization that adheres to the Trust Principles and values integrity, independence, freedom from bias, and impartiality.
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Soaring fertilizer prices dim Brazilian farmers' edge over US rivals
B?razil’s cheap and abundant land has helped the country’s farmers create large, low-cost farmland, allowing them wresting export markets from U.S. Farmers?hurt by President Donald Trump’s tariff wars. Brazil has become a major agricultural powerhouse, despite the fact that U.S. farm land hasn't grown in this century. The 'South American country is now being put to the test as the U.S. - Israel war with Iran has sent fertilizer prices soaring. Since the beginning of the war, a third of all fertilizer has been trapped in the Strait of Hormuz. Brazil is heavily dependent on imported fertilizers while the U.S. relies on its own production. Many Brazilian farmers have reduced their fertilizer purchases. Experts in the industry say that Brazil's farmers will still be in trouble even if the war ends tomorrow. They are already saddled with thousands acres of farmland that produce diminishing returns, or even losses. They are beginning to accumulate significant amounts of debt. Many U.S. Farmers have enough land to produce good yields even if they don't apply fertilizer for an entire year. Few Brazilian farmers are able to do that. The different growing seasons also pose a problem. Brazil's spring planting begins in September, so Brazilian farmers are exposed to high fertilizer prices. Farmers were almost finished with their purchases by the time?the conflict began. Brazilian farmers are not eligible for government bailouts and generous support programs. Murilo Martins Rabelo, a farmer from Goias in central Brazil, said that "profitability is just not there." Everyone is currently rethinking expansion. Pereira, 34?farms tomatoes, soybeans and corn on 800 hectares. The rising production costs, he said, make expanding his farm too risky. He has been offered more land to lease. Purdue University agricultural economist Joana Colussi is a Brazilian-born native. She said, "We'll definitely not see the same trends" in agricultural growth. She anticipates that growth will slow, at least temporarily as farmers invest more in fertilizer, fuel and seeds, and less in expansion. HISTORIC GROWTH China's booming agricultural demand prompted Brazil to begin its historic growth in agriculture production. Brazil and the U.S. were forced to compete for vast areas of grassland that had been used for cattle grazing. Brazil is generally the winner. Brazil was among the largest winners as a result of tariffs Trump imposed against China in his first and second terms. In 2000, U.S. sales of soybeans to China were almost double Brazil's. By the end of 2025, Brazil will have sold twice as much soybeans to China. Brazil's expansion was based on the acquisition of cheap, vast land. Many of the soils are degraded today because farmers move to new plots when their old ones fallow instead of investing in soil health. LAND AND SEASONALITY DEGRADED Large-scale industrial agriculture in Brazil is a costly endeavor due to the degrading of land. It requires large quantities of pesticides, gm seed, and other expensive biological inputs. Brazil is not the only country where farmers are struggling to make ends meet. You can survive a lower or even no fertilizer application if you have a better soil. "You can handle a shock such as this better", said Saswato das, global head for corporate affairs at Syngenta, a producer of seeds and pesticides. Even if they miss a season, many U.S. growers can still achieve average yields. This year, thousands of farmers have taken this approach. Potash and DAP are only used for one season on many Brazilian farms. Marshall Lee Davis, a farmer of peanuts and cotton who lives in Georgia, the southern U.S., says that U.S. farmers "just skimp out" on DAP. The price of DAP has roughly doubled since Iran's war began. Davis stated that even U.S. Farmers who could skip one application were concerned about the high prices of fertilizer when they started buying in advance of their spring planting 2027 next March. Since the Iran War began late February, Brazilian farmers have faced high fertilizer prices. They still need to complete their spring planting for?2026 this September and prepare for second-crop plantings in?early?2027. Murphy Campbell, an Expana analyst, said that North American farmers were in a much better position than Brazilian farmers because of seasonality. FERTILIZER, FARMER PROTECTIONS Brazil imports a large amount of DAP and urea-based nitrogen, which is the most commonly used fertilizer in the world. Petrobras, Brazil's state oil company, is restarting some of its less profitable fertilizer plants that were idled by former president Jair Bolsonaro. It hopes to satisfy 35% of the country's nitrogen fertilizer needs within the next few years. The price that farmers can charge for soybeans and corn has not increased much since the beginning of the war, despite the high cost of fertilizer. This is because large harvests have been allowed to accumulate in the last few years. The result has been a squeeze on farmer margins around the world, particularly for those who depend on fertilizer imports. Campbell, from Expana, stated that Brazil's soybean producers had purchased, by late May, about half of their total 2026/27 fertiliser needs. Campbell noted that "in the past, over 60% of fertilizer is purchased by late May". Farmers with increasing debts will suffer from lower yields, lower profits and even outright losses if they reduce their fertilizer application. Bruno Fonseca is an analyst at Rabobank Brazil. He said that the farmers of Brazil are "overleveraged". Expana's Campbell says that the price of fertilizer will remain high for at least six more months, even if a peace agreement is reached in the Middle East. Pereira, a Brazilian farmer, has to make tough decisions because of the grim future. He said, "We planned to replace our harvesters this year. They are very old." "We decided to not go ahead." Reporting by Ed White and May Angel. Oliver Griffin. (Editing by Emily Schmall, David Gregorio and David Gregorio.)
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Clashes in Pakistan-administered Kashmir kill 11 ahead of protest
Clashes in Pakistan-administered Kashmir ahead of a protest called for Tuesday killed ?11 people and injured more than 70 as ?police and paramilitary forces sought to scatter a group of protesters from a ?banned alliance of civil society ?groups. The police said that the protesters from 'the Joint Awami Action Committee', which aims to protect economic and political freedoms, had gathered in front of the hospital morgue, where another member of the group was taken following his death by firing. Sardar Waheed Khan said that four police officers and one passerby were killed after miscreants fired at them. He added, "As a result of law enforcement's response, six protesters died." Liaqat Malik, the police chief in Pakistan's Himalayan region which is a flashpoint between India and Pakistan, said that 23 security officials were injured in the incident on Sunday. He also added that 50 protesters had been injured. Thirty offenders have since been arrested. Shaukat Mir, a JAAC member, said in a video on X that the state had begun a massacre against our people in Rawalakot. He pledged that the group will remain united in order to achieve the June 9 lockdown. Khan responded by saying, "The JAAC leaders are misleading the masses when they call it a massacre. The state's actions were meant to restore order. He said that when security forces attempted to disperse?protesters the group's militants used automatic rifles as well as petrol bombs to target them. The JAAC announced the strike in protest of the reservation 'of 12 seats for refugee candidates at the July 27 regional legislative?body elections, out?of?45 that were up for grabs. The alliance wants to abolish the reserved seats of the Azad-Jammu-and Kashmir Legislative assembly, which are contested by candidates from Pakistan, not Kashmir. The regional government declared the JAAC a prohibited group on Friday under an anti-terrorist law and advised 'domestic and international tourists to leave before June 9'. After clashes with the security forces, the JAAC's supporters turned the deadly protests against the rising cost of electricity and flour into mass demonstrations. Reporting by Tariq Mqbool, Writing by Mubasher Bukhari; Editing Clarence Fernandez
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NATO kills drone in Latvian airspace - army
NATO fighter jets shot down on Monday a 'drone' that entered Latvian airspace from Russia, according to the Baltic nation's military. This is the latest incident in a long line of security incidents near Europe's eastern borders. The origin of the drone was not immediately known. In recent months, Ukraine has increased its long-ranged drone attacks against Russia, including the Baltic Sea region, where several Ukrainian military aircraft have entered the airspace of Finland and Latvia. In a social media post, the Latvian army stated that "Allied fighter 'jets successfully shot down a drone which was flying into Latvian Airspace!" The authorities warned residents in eastern Latvian regions earlier Monday to take shelter inside due to the threat. The alert was lifted 'when the drone had been shot down,'?the army? said. The 'war in Ukraine' is spreading to NATO's northern border, according to fears sparked by military drones that have crossed into Russia's airspace. Last month, a NATO jet shot down a suspected Ukrainian drone in Estonia. (Reporting and writing by Janis Sytas and Andrius Laizans, editing by Terje Solsvik).
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London Copper nears 1-week Low on Continued Inflation Worries
London copper prices remained at a one-week low on Monday due to weaker Chinese 'prices, and expectations that the Federal Reserve will be influenced by strong U.S. job data and higher oil prices. The benchmark three-month copper price on the London Metal Exchange rose 0.19%, to $13,545 per metric ton at 0710 GMT. The LME copper fell to its lowest level since May 28 due to a rising dollar, and fears of inflation. Industrial metals are more dependent on economic growth as a result of higher?interest rates. The official data revealed that the U.S. added 172,000 new jobs in May. This was more than twice what analysts expected. The data was released less than two weeks before Kevin Warsh made his debut as the?head of U.S. Federal Reserve. According to CME's FedWatch, the expectation of a rate increase in December has risen to around 78%. The most traded copper contract at the Shanghai Futures Exchange fell 1.54%, to 104120 yuan (15,340.87 dollars) per ton. The stock market in China and Hong Kong opened lower on Monday, following their U.S. counterparts. Yangshan Copper Premium The price of copper, which reflects the demand for imported metals, dropped to $64 a ton by the end the day on the Friday. This is the lowest since April 30. Buyers in China are historically sensitive to high prices. Oil prices also increased by?4.84% after Iran and Israel traded fire on Monday. Aluminium fell by 0.06% on the LME, while zinc dropped by 0.31%. Lead?lost 0.5 %, and nickel grew 0.08%. Tin declined 2.71%. Aluminium fell 0.8% on?SHFE. Zinc dropped 0.87%. Lead slid by 0.37%. Nickel added 0.25%. Tin dropped by 6.62%.
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Gold continues to fall on fears of an interest rate hike in the US
Gold prices fell on Monday to their lowest level in more than two-months, amid fears of an increase in U.S. interest rates following a positive jobs report. Meanwhile, renewed hostilities across the Middle East drove oil prices up and increased inflation concerns. Gold spot was down 0.3% to $4,315.71 an ounce at 0725 GMT. It had fallen to its lowest level since March 23 during the earlier session. Prices dropped by?3% Friday, reaching a two-month low. U.S. Gold Futures for August Delivery were down 0.6% to $4,341.10. Kelvin Wong is a senior analyst at OANDA. He said that gold was under pressure due to the increased Treasury yields. The yield on the benchmark 10-year U.S. Treasury Note rose, after reaching a two-week-high in the previous session. This increased the opportunity cost of holding non-yielding gold. Israel claimed it had struck military targets on the western and central Iranian coasts, despite reports that U.S. president Donald Trump told Israeli Prime Minister Benjamin Netanyahu not to launch any more attacks. Oil prices rose by more than $4 per barrel, causing inflation fears and interest rate increases to rise. Gold is often seen as a hedge to inflation. However, higher interest rates can weigh down on this non-yielding material. The U.S. Economy posted a strong third consecutive month in May. This confirms that the labour market is gaining momentum after last year's stumble. It also gives the central bank more leeway to keep rates stable amid rising inflation caused by the Iran War. According to CME Group’s FedWatch tool, the markets are pricing in an increase by the Federal Reserve before year-end. There is a 72% probability of this happening by December. Cleveland Fed President Beth Hammack stated on Friday that the new job numbers showed the labour market was?roughly in balance and close to?full employment', while the continued high inflation could?require the Fed raising rates soon to control it. Silver spot was down by 0.5% to $67.47 an ounce. Platinum fell 0.6% to 1,766.70 while palladium rose 0.3% to $1229. (Reporting and editing by Subhranshu sahu in Bengaluru, Sherry Jacob-Phillips).
Copper prices boosted by falling stocks at LME warehouses
Prices of copper rose on Monday as stocks fell in London Metal Exchange approved warehouses. The market is now looking forward to the U.S.'s decision on tariffs for importing?the metal? at the end of June.
Benchmark copper prices on the LME were up 0.6% to $13,594 per metric tonne at 0935 GMT.
Sources in the industry said that traders and funds continue to take copper from the LME into the U.S., before any import duties are imposed. This would increase shipping costs significantly.
The United States has announced that they may impose a 15% tax on copper imports starting in 2027 and a 30% tax beginning in 2028. The?U.S.
Copper stocks
The LME inventory has also decreased, reducing the discount for cash copper contracts over the next three months.
The traders also pointed to the strong interest in buying copper from Chinese companies after Friday's drop of 3% to a one-week low as a factor supporting their position.
Copper's upside is capped by the 21-day moving average, currently $13,730. Support on the downside comes in at the 50-day average, $13,260.
The Middle East, which houses 9% of global production capacity and is affected by the U.S. vs. Iran war as well as the?closure? of the Strait of Hormuz, will continue to be a source of limited supplies.
Aluminium prices are expected to rise due to higher energy costs, which is a major component of the aluminium production process.
In general, industrial metals were under pressure due to concerns about growth caused by?high oil prices and conflict in the Middle East.
The?base metals industry is also affected by a higher U.S. dollar, which makes dollar priced?metals costlier for holders of other currencies.
Aluminium fell 0.1% to $3.589 per ton. Zinc was down by 0.2% at $3.524, while lead dropped 0.4% to $1.996. Tin declined 1.4% to $52,195, and nickel was down by 0.3% to $8,530. (Reporting by Pratima Deai; Editing and proofreading by Jan Harvey).
(source: Reuters)