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Brazil's Lula criticizes Trump tariffs during a meeting with Putin
Brazilian President Luiz Inacio Lula da Silva, who met with Russian counterpart Vladimir Putin on Friday in Moscow, criticized the U.S. president Donald Trump's policies regarding trade and tariffs. He said that they were harmful to multilateralism. Lula is visiting Russia to celebrate the 80th anniversary since the Soviet Union defeated Nazi Germany during World War Two. Russia celebrated this milestone on Friday. Major Military Parade Also in attendance was Chinese President Xi Jinping. "The recent decisions of the U.S. President to unilaterally impose tariffs on all trade with countries around the world undermines the great idea? "Free trade and strengthening multilateralism" was Lula's message during a bilateral discussion with Putin. Leftist leader says he wants to boost Brazil's strategic relationship with Russia. He cites "political and commercial interests, as well as cultural, scientific, and technological ones" in order to increase trade. Lula also mentioned that he would be interested in working with Russia to build small nuclear power plants. Brazil and Russia were both founding members of BRICS, a group of emerging economies that includes India, China and South Africa, as well as the newest additions, Egypt, Saudi Arabia and the United Arab Emirates. Ethiopia, Indonesia, and Iran are also part of this group. (Reporting and writing by Isabel Teles, with additional reporting by Lisandra paraguassu. Editing by Mark Heinrich.
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Venture Global's CP2 project is recommended for approval by US regulators
According to a document filed by the government on Friday, U.S. federal regulatory agencies recommended that Venture Global's proposed CP2 liquefied gas export project be approved. If built, CP2 would be the largest LNG export facility to ever exist in the United States and will help the U.S. remain the largest LNG exporter in the world. Venture Global had already received approval for the construction of the 28 million tonnes/annum plant. However, a recent court ruling forced them to perform an additional air quality review. Documents from the Federal Energy Regulatory Commission show that the study concluded the project could continue. This additional review was prompted by a decision of the U.S. Court of Appeals, District of Columbia Circuit in August 2024 that quashed FERC's approval of NextDecade LNG exporter NextDecade at the Port of Brownsville. The court ordered FERC also to re-examine the ramifications associated with the CP2 Project. CP2 is at the heart of a battle between the energy industry and environmentalists who want to limit future LNG project on the U.S. Gulf Coast.
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Thermax, an Indian industrial machine manufacturer, misses its profit forecasts due to weak demand
Thermax, an Indian industrial machine manufacturer, reported a fourth-quarter profit that was below expectations Friday. This was due to a weaker demand for its machines and increased raw material costs. In recent quarters, capital goods companies that rely heavily on government orders have seen their inflows slow down. Analysts report that government capex was subdued in most segments during the quarter under review. Thermax’s order book dropped by 8%, to 21,19 billion rupees. A spike in raw material costs increased the company’s expenses by 11%. The net profit of the industrial machine manufacturer rose by 8%, to 2,066 billion rupees (US$24 million), in the quarter ending March 31. It was 1.9 billion rupees last year. LSEG data shows that analysts had predicted a profit of 2,08 billion rupees. Thermax revenue for the quarter ended March grew by about 12%, to 30,85 billion rupees. This was below analyst expectations of 31,22 billion rupees. Thermax’s industrial products division saw a revenue increase of 18.5% while the division that installs bio-CNG power plants and other energy sources grew by 4%. In a press release, the company said that 660 million rupees of costs related to its bio-CNG project had affected the quarterly results. Peer ABB India announced higher profits for the first quarter on Friday, citing steady demand for its products. Reporting by Aleef Jhan in Bengaluru, editing by Sahal Muhammad.
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Spain's LNG imports to the US are on the rise, representing 35% of total gas supply
Data released on Friday showed that imports of US LNG accounted for 35% of Spain’s total gas imports during the first four month of this year, up from just under 20% one year earlier. Meanwhile, imports of Russian Liquefied Natural Gas (LNG) declined. Since the Russian invasion of Ukraine, Europe has imported more superchilled gas from the U.S. According to Enagas, the Spanish gas grid operator, in the first four month of this year, Spain imported 45,932 GWh of gas equivalent from the U.S. This compares with 24,885GWh one year ago. The U.S. is now the primary gas supplier for Spain. This replaces Algeria, which primarily supplies liquefied natural gas to Spain and pumps it directly through pipelines. Enagas reported that the overall Spanish gas demand fell by 3%. The U.S. gas liquefied also replaced the gas liquefied sent from Russia. In the first four month of this year, the share of Russian gas in Spain's total gas imports fell from 22.4% to 13.3%. (Reporting and editing by Inti landauro, Louise Heavens and Joao Manuel Mauicio from Gdansk)
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Focus on tighter supply in the near future as copper prices remain steady before US-China trade negotiations
The price of copper was stable on Friday, ahead of the U.S.-China Trade Talks. The market's focus on tighter supply near-term is reflected by the premium that nearby contracts have over those further away, which has reached a 2-1/2-year-high. In official open-outcry trade, the benchmark three-month copper price on London Metal Exchange (LME), remained unchanged at $9 432 per metric. As representatives prepared for the weekend's talks, U.S. president Donald Trump said that tariffs of 80% on Chinese goods "seemed right". This is as representatives prepare to stop a trade conflict between two of the largest economies in the world which threatens to harm global metals demand. The trade spat, and an investigation in Washington into whether or not to impose new tariffs on copper imports has reduced the availability of the metal on the Shanghai Futures Exchange and the LME by attracting it more into COMEX owned warehouses. . Natalie Scott-Gray is a senior metals analyst with StoneX. She said: "The tightening of copper fundamentals can be seen in the widening of backwardations on near-month contracts for LME and SHFE." She added that this tightening is only temporary and won't offset the larger implications of an ongoing U.S.-China Trade War. Copper inventories in SHFE monitored warehouses increased as outflows from the U.S. coincided seasonal demand in China. In recent weeks, the number of people who have died has fallen faster than expected. The SHFE copper contract for June is now worth more than the SHFE copper contract for October, despite the fact that these stocks have fallen by 9.6% in the past week. They are also down 70% from the end of February. The spread between the LME cash price and the three-month contract of copper on the LME The last time it was at a premium, $49 per ton, this was the highest price since November 2022. The price has risen from a discount in early April of $63 as the stocks at LME registered warehouses continue to be depleted. Yangshan copper premium - a measure of robust import demand for metals in China's top metals consumer - The price of a ton is now $102, the highest level since December 2023, compared with $35 at the end of February. Imports of copper concentrate from China reached a new record in April due to an increase in domestic copper smelting capacities. Meanwhile, imports of unwrought copper were stable despite high shipments into the U.S. LME aluminium was unchanged at $2,412 per ton. Zinc rose 1% to 2,645, lead increased 1.7% to 1,978, nickel was up by 0.5% to $15.615, and tin was down 0.7% to $30,650. Ashitha Shivaprasad reported from Bengaluru, and Polina Devlatt in London. Vijay Kishore edited the story; David Evans was responsible for editing.
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Andy Home: A gallium-lens on China's mineral dominance, and how to end it
Since China began restricting the export of exotic metals in August 2023, the price of gallium is on an upward trend. It is not surprising that China holds a near-monopoly in the global production of gallium, as well as across a wide range of critical materials. What should we do about the fact that a commodity most people never heard of has reached a 14-year high? According to the United States Geological Survey, the global production for last year was only 760 metric tonnes. The world market is worth only $550 million, even at the current high prices. Metal is used in so small quantities that it has no impact on the price of a cell phone or electric vehicle. If you are in the semiconductor industry, it is important. It's even more important to U.S. defense planners. That's why China selected element 31 as a metal pressure point. The Multiplier Effect The economic impact of China's export bans is multiplied by the fact that gallium is used to make so many gadgets. USGS estimates a suspension of Chinese exports for a year would result in a hit to the U.S. economic system of $3.1 billion. The semiconductor industry would account for about half of this decrease, while the remaining half will come from downstream industries like computers, printed circuit assemblies and electric vehicles. China hasn't completely suspended exports but has banned direct sales into the United States. Outbound flows are down since 2023, when dual-use regulations came into effect. The USGS projections also assumed that gallium prices would increase by more than 2,5 in the event of an export stop. Gallium prices have more than doubled since July 2023, when they were $350 per kilogram. They are now $725 per kilogram and still increasing. As more gallium is kept on the Chinese market, the Chinese price falls. Other times, physical arbitrage could close the price gap. But not when China's Ministry of Commerce is guarding the gate. THE MILITARY ANGLE Gallium is of even greater importance to U.S. military planners. The U.S. Defense Advanced Research Projects Agency, or DARPA, was responsible for the development of a compound known as gallium arsenide. This compound is used in precision-guided and radar weapons. More recently, DARPA has been involved with the development of the next-generation semiconductor chip, gallium nitride. According to The Center for Strategic and International Studies (a non-profit research organization), the latter "revolutionizes modern radar by allowing new modules to track smaller and faster threats, and to be more numerous from a distance nearly doubled." The U.S. Army is deploying gallium nitride-enhanced Radars in its Lower-Tier Air and Missile Defense Sensors (LTAMDS), which are an integral part Patriot missile defence units, and F-35 Joint Strike Fighter. There's likely a lot more we don't even know. Gallium, like many other critical metals, has a small market but a wide range of applications. Many of these are at the forefront of semiconductor design. It's not a coincidence that China announced their export controls as a direct response to U.S. sanctions on next-generation chip imports to China. THE CHINA CHALLENGE Can the West sever China's grip on gallium? The solution to the problem is right in front of us, or better yet, in the tailings pool. Gallium isn't particularly rare on the surface of the Earth, but it only occurs at concentrations high enough to be extracted as a byproduct from other minerals. China's gallium dominance has increased along with its massive expansion of aluminum capacity. China accounts for 60% global aluminium production and all of that metal requires alumina which is produced from bauxite. Gallium can be produced by other refineries than China's. Western companies have stopped producing gallium after China took over the market in the first decade of this century. That's changing. Rio Tinto and Indium Corporation just announced that they had successfully extracted pure gallium out of a waste stream from Rio's Vaudreuil Alumina Refinery in Quebec. The next step will be to build a pilot plant that can produce 3.5 tons of gallium per year. METLEN, a Greek aluminium manufacturer, plans to increase its bauxite-and-alumina processing capability to 50 tons annually by 2028. This is one of 47 strategic mineral projects in the European Union. Two key lessons can be learned from this article for other mineral markets that are being affected by Chinese export restrictions. First, it is likely that the West already produces many of these materials but has not appreciated their value until now. Rio Tinto has begun extracting tellurium and scandium at its Kennecott Copper Smelter, Utah, as well as titanium from its operations in Quebec. The two plants had been in operation for several years before anyone thought it necessary to separate the metals from the waste stream. Second, it's clear that Western operators have to learn or, in the case gallium, re-learn the processing technologies needed to separate them and refine them. It will take some time, especially since China restricts the export of this technology in many cases. The higher prices that result from China's export restrictions are encouraging more and more Western companies back to metallurgy. The author is a columnist at
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Japan's SMBC will take 20% of India's Yes Bank
SumitomoMitsui Banking Corp. (SMBC), a Japanese lender, has signed a definitive deal to acquire a 20% stake of Indian private lender Yes Bank. This is the largest cross border merger and acquisition in India's finance sector. Sumitomo Mitsui Financial Group released a statement saying that the total value of this deal is 134.8 billion yen ($1.58 billion), which includes SMBC purchasing shares from eight current shareholders. SMBC is a subsidiary of Sumitomo Mitsui Financial Group, and the second largest bank in Japan. Cross-border banking deals are rare in Indian banks due to restrictions on ownership, capital requirements and the state's dominance of the sector. The last major deal was a takeover by Singapore's DBS Group of the troubled Lakshmi Vilas Bank in 2020. SMBC’s purchase of a stake in Yes Bank will make the bank the largest shareholder. It is also the latest overseas acquisition of a Japanese financial organization as it looks to find new growth sources after years of low interest rates and a shrinking population at home. Nomura, the investment bank, acquired Macquarie Group’s U.S. public asset management business and its European counterpart for $1.8 billion last month. In December of 2012 Nippon Life Insurance became a fully-owned subsidiary of Bermuda-based Resolution Life for approximately $8.2 billion. Yes Bank announced in a filing to the stock exchange that SMBC would acquire a stake of 13.19% from State Bank of India (also its largest shareholder) and an aggregate of 6,81% from Axis Bank Bandhan Bank Federal Bank HDFC Bank ICICI Bank IDFC First Bank Limited Kotak Mahindra Bank. SBI owns a 24 percent stake in Yes Bank as a result the restructuring led by the regulator in March 2020. Together, ICICI Bank (ICICI Bank), HDFC Bank (HDFC Bank), Kotak Mahindra Bank (Kotak Mahindra Bank), Axis Bank, and Life Insurance Corporation of India hold 11.34% of Yes Bank. Yes Bank stated that the transaction is subjected to approvals by the Reserve Bank of India (RBI), Competition Commission of India (CCI) and the shareholders of the Bank. Prashant Kumar, CEO of SMBC, said that the investment was "a pivotal step for our next phase in growth". Yes Bank reported that JPMorgan and Jefferies were the financial advisors for SMBC. This week, it was reported that SMBC had reached an agreement with Yes Bank on the acquisition of a stake. The central bank had also verbally approved this deal. The shares of Yes Bank have gained nearly 10% this year. $1 = 85.3990 Indian rupees (Reporting and editing by David Goodwin and David Evans in Tokyo and Siddhi Nyak in Mumbai)
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UK's National Statistician Resigns Due to Ill Health
The British Statistics Authority announced on Friday that Ian Diamond had resigned due to health problems. Emma Rourke will take his place until longer-term arrangements are made. Diamond stated in a press release that he had made the difficult decision to step down from the position of national statistician due to his ongoing health problems. He felt that now was the time for someone else to take over the mantle. Diamond's resignation is at a challenging time for the Office for National Statistics. The Office has been criticized for its poor quality labour market statistics, which provide crucial information for policymakers in the government and Bank of England. Last month, the UK's statistic regulator stated that other countries did not have the same problem. It also told the ONS to concentrate its limited resources on numbers of the highest importance. The ONS has been the subject of a government inquiry. (Reporting and writing by William James; editing by Andy Bruce, Kate Holton, and Sam Tabahriti)
The Supreme Court is currently hearing the following cases:
In the current term of the U.S. Supreme Court, there are cases that involve guns, gender affirming medical care for minors who identify as transgender, online pornography and religious rights, TikTok and preventive healthcare. There are also cases involving funding Planned Parenthood, job discrimination and federal regulatory powers over nuclear waste storage, vape products and voting rights.
Take a look at the recent and upcoming cases that the justices will be deciding.
TRANSGENDER RIGHTS During arguments on 4 December, the court's conservative judges indicated that they were willing to uphold Tennessee's Republican-backed ban on gender affirming medical care for minors who are transgender. This case could have a significant impact on other state laws affecting transgender individuals. Biden's Administration appealed the decision of a lower court upholding Tennessee’s ban on medical treatment, including hormones and surgery for minors suffering from gender dysphoria. This refers to the distress caused by the incongruity of a person’s gender identity with the sex assigned at birth. The ruling is expected to be made by the end June.
'GHOST GUN' On October 8, the court heard arguments over the legality a federal regulation enacted by former president Joe Biden to crackdown on "ghost gun" - largely untraceable guns whose use in crimes has increased. The lower court found the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives had exceeded its authority by issuing a rule that targeted parts and kits of ghost guns, which could be assembled in minutes at home. The justices indicated during the argument that they were willing to support the regulation. The ruling is expected to be made by the end June.
MEXICO GUN LAWSUIT On March 4, the justices showed sympathy for a request by two American firearms companies to dismiss the Mexican government’s lawsuit accusing the companies of assisting illegal gun trafficking to the drug cartels, and fueling violence in Mexico's southern neighbor. The justices heard arguments from Smith & Wesson, a firearms manufacturer and distributor of Interstate Arms in their appeal against a lower-court ruling allowing the lawsuit on the basis that Mexico had plausibly alleged the companies aided illegal gun sales and harmed its government. The ruling is expected to be made by the end June.
U.S. TIKTOK BAN On January 17, the justices upheld a federal law that would ban TikTok from the United States if the Chinese parent company ByteDance failed to sell the short video app within a time limit set by Congress. The Justices ruled, 9-0, that the law passed by Congress and signed by Biden last year did not violate First Amendment protections against government abridgment. The justices upheld a lower court decision that had supported the measure. Biden's replacement, Republican President Donald Trump chose not to enforce it and instead gave both parties time to work out a compromise.
Online Pornography The Justices heard arguments about whether the First Amendment protects against government interference in speech when a Texas law requires that pornographic sites verify users' ages to limit access by minors. The justices voiced concerns over the availability and accessibility of online pornography, but also expressed concern about burdens placed on adults who wish to view constitutionally-protected material. A trade group representing the adult entertainment industry has appealed the decision of a lower court that upheld the Republican-led State's age verification mandate. The ruling is expected to be made by the end June.
WORKPLACE DISCRIMINATION On February 26, the court heard arguments in a case where a woman claimed that she was denied a job promotion and demoted because of her heterosexuality by an Ohio government agency. The justices seemed to favor making it easier for those from "majority backgrounds" to bring workplace discrimination cases, such as straight or white people. Marlean Amees, the plaintiff, said that she worked with a homosexual supervisor when, in 2019, she was demoted and passed over for promotion to a woman gay. The ruling is expected to be made by the end June.
RELIGIOUS SCHOOL The court will hear a case that tests the separation between church and state. Two Catholic dioceses are attempting to establish the first taxpayer-funded charter school in Oklahoma. St. Isidore Catholic Virtual School was shut down by a lower court, which ruled that the funding arrangement for the school violated First Amendment restrictions on government endorsements of religion. Arguments will be held on April 30.
RELIGIOUS TASKS EXEMPTION In a case that could have constitutional implications, a Wisconsin Catholic diocese's arm is seeking a religious exemption to the state unemployment insurance tax. The Catholic Charities Bureau of the Catholic Diocese of Superior appealed the lower court's rejection of its exemption request. If the Supreme Court rules in favor of the bureau, it could force Wisconsin and other states that have similar tax programs in place to expand their exemptions to conform to the First Amendment protections of the U.S. Constitution. The arguments are scheduled for 31 March.
LGBT SCHOOL BIBLES The court accepted a request from religious parents who wanted to prevent their children from attending classes in a Maryland district public school when LGBT stories are read. This is yet another case that involves the intersection of religion and LGBT rights. Parents of children attending Montgomery County Public Schools filed an appeal after lower courts refused a plaintiff's request for a preliminary order ordering the district not to read these books. Arguments will be held on April 22.
OBAMACARE'S PREVENTIVE CARE MANDATES The court will determine the legality of an important component of the Affordable Health Care Act, which gives a taskforce established under the Obamacare healthcare law the power to demand that insurers provide preventive medical services without charge to patients. The court heard an appeal from the Biden administration against a lower-court ruling which sided with a Christian group of businesses that objected to the fact that their employee health plans covered HIV-prevention medication. They also argued that task force structure was in violation of the U.S. Constitution. Arguments will be held on April 21.
PLANNED PARENTHOOD FINANCE The court will examine South Carolina's attempt to cut off funding to Planned Parenthood. This case could support conservative states in the U.S. who want to deny Planned Parenthood government money for reproductive healthcare. A lower court barred the Republican state from cutting off funding to Planned Parenthood South Atlantic under the Medicaid insurance program. Arguments will be held on April 2.
NUCLEAR WASTE STORAGE On March 5, the justices heard arguments over whether the Nuclear Regulatory Commission had the authority to issue licenses for certain nuclear waste facilities, amid objections raised by the state Texas and oil industry interests. The U.S. Government and a company awarded a license to operate an operation in western Texas by the NRC appealed the ruling of a lower court declaring that the storage arrangement was illegal. The NRC regulates nuclear energy in the United States. The NRC is expected to make a decision by the end June.
FLAVORED VAPOR PRODUCTS On December 2, the court heard arguments in defense of the U.S. Food and Drug Administration for its refusal to allow two ecigarette companies to sell flavored products, which regulators believe to be a risk to health. The lower court ruled that the FDA failed to follow the proper legal procedures in federal law when they rejected the applications for the sale of these nicotine-containing products. The end of June is the expected date for a ruling.
EPA AUTHORITY On March 4, the court handed a major blow to the Environmental Protection Agency with a ruling of 5-4. The case involved a wastewater treatment plant owned by San Francisco. This could make it more difficult for regulators and water quality inspectors to monitor pollution. The court ruled that the EPA had exceeded its authority in a law against pollution by including vague restrictions on a permit for the facility which empties into Pacific Ocean. In recent years, the court has limited EPA's power as part of a number of rulings that have curbed the federal regulatory agencies' powers.
TAILPIPE Emissions A major case that tests the power of the Democratic-governed California to combat greenhouse gases is a challenge by fuel producers against California's standards on vehicle emissions and electric vehicles under a federal law on air pollution. Valero Energy, along with fuel industry groups, appealed the lower court's decision to reject their challenge against a Biden administration decision to let California set its own regulation. Arguments will be held on April 23.
The Supreme Court is hearing a dispute regarding the legality and operation of the TELECOMMUNICATIONS SERIES FUND, a fund that Congress authorized to be operated by the Federal Communications Commission in order to increase access to telecommunications. The conservative Consumers' Research group and others accused Congress of illegally delegating authority to an independent federal organization. The FCC, along with a coalition including interest groups and telecoms companies, appealed an earlier court decision which found that Congress had violated the Constitution when it gave the FCC the authority to manage the fund. Arguments will be held on March 26.
LOUISIANA ELECTORAL MAP
Justices will rule on a challenge brought by voters who identified themselves as "non African American" to a Louisiana electoral map which increased the number of Black majority congressional districts. Three federal judges determined that the map of Louisiana's six U.S. House of Representatives district - which now has two Black-majority areas, instead of one - violated the Constitutional promise of equal treatment. Arguments will be held on March 24.
Death Penalty Case On February 25, the court threw away Richard Glossip’s conviction in Oklahoma for a murder-for hire plot that took place in 1997 and gave him a fresh trial. In a 5-3 decision, the justices concluded that prosecutors had violated their constitutional obligation to correct false testimony from their star witness. The justices reversed the lower court decision which had upheld Glossip’s conviction. They also allowed his planned execution move forward, despite Glossip’s claim that prosecutors had wrongly withheld information that could have helped his defense.
(source: Reuters)