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Petrobras CEO: US tariffs on Brazil may cause Petrobras to redirect oil to Asia
Petrobras, the Brazilian state-owned oil company, may redirect oil sold to the United States to Asia and Pacific due to increased tariffs announced by the United States on Brazil, the chief executive said on Thursday. Magda Chambriard, CEO of Petrobras, said that although oil and gas exports account for a large share of Brazil's trade with the United States it is not a vital market for the company. "We don't export much (to the U.S.). She said, "In general, we're not too worried" in her first comments to the public about the 50% tariff announced by President Donald Trump last week. In the first quarter of 2018, exports to the U.S. accounted for about 4% Petrobras total oil shipments. According to StoneX, the U.S. will also not feel any major effects if Brazil stops exporting, since the South American nation has only supplied less than 3 percent of the oil that the U.S. has consumed in 2025. Chambriard made his remarks amid Brazilian uncertainty over the impact of the new tariffs that will take effect August 1. The commodity was exempted from Trump's 10% tariffs. Petrobras exported 37% of its 209,000 barrels of oil per day to the U.S. in the first quarter. Analysts said that this volume could be easily redirected into other countries. (Reporting and writing by Rodrigo Viga Gaier, Fabio Teixeira, Editing by Gabriel Araujo Brad Haynes Lisa Shumaker).
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EU opens the door to nuclear energy funding in next budget
The European Commission is proposing to allocate a part of the proposed budget for nuclear energy in 2028-2034, which will likely divide member states. Germany rejected this move immediately, as it would cause divisions among the members. The Commission published an annex of its mammoth proposal on Wednesday that listed nuclear energy as a project countries could fund with their national budget - "new or increased fission power capacity installed in GW". These national spending plans will have access to around 865 billion Euros of EU funding. This would represent a major shift for the EU whose budget currently does not include funding conventional nuclear power plants. It reflects a long-running dispute between traditionally anti-nuclear EU countries such as Germany and Austria and pro-nuclear EU member states like France and Sweden. Carsten Schneider, the German environment minister, said that Berlin respects the decision of other countries in building reactors. Schneider stated that "respecting national sovereignty on energy matters means also not claiming EU funding for this costly path, of which a quarter comes from German taxpayers money." The French energy ministry didn't immediately respond to an inquiry for comment. Ebba busch, the Swedish energy minister, declined to comment. The budget proposal from the Commission marks the beginning of years of intense negotiation among EU nations. They must all approve of the final budget. The EU has been in a long-running dispute over whether to use atomic energy to reduce CO2 emission. This disagreement has delayed the development of policies on climate change and energies within the bloc. This dynamic appeared to be on the verge of a change earlier this year when German Chancellor Friedrich Merz announced Berlin would not object to the EU treating nuclear energy on par with renewable energies. Denmark and Italy have also indicated a change in their previous opposition to nuclear energy. Some EU diplomats, however, said that the softening in positions did not extend to support for EU financing. One EU country diplomat stated that there was no way EU money would go to nuclear new reactors. The EU budget for the current year explicitly prohibits member states from using their share in hundreds of billions euros of regional development funds to build nuclear power plants. However, it offers limited funding for nuclear research and the decommissioning old reactors.
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Gold extends decline after solid US economic data
Gold prices continued to decline and fell by nearly 1% Thursday, after positive U.S. data helped the Federal Reserve maintain its cautious stance about resuming monetary ease this year. Gold spot fell by 0.9%, to $3,315.15 an ounce at 0936 am EDT (1336 GMT), after reaching a session-low of $3,309.59. U.S. Gold Futures dropped 1.2% to $3320.80. According to the latest U.S. statistics, "there has been a slight rise in the dollar. Also, U.S. Treasury rates are higher." Bob Haberkorn is a senior market strategist with RJO Futures. Gold prices could remain high due to a strong central bank demand and ongoing geopolitical tensions. Dollars gained 0.3% making gold priced in greenbacks more expensive for holders of foreign currencies. The number of Americans who filed new claims for unemployment benefits dropped last week. This indicates that there was a steady increase in jobs in July. Retail sales in the United States rose more than expected last month, with an increase of 0.6% after a 0.9% decline in May that was not revised, but some of this increase is likely due to higher prices of some goods subjected to tariffs. Fed Governor Adriana Kulgler stated that the Fed shouldn't cut rates for "some time" because the tariffs of the Trump administration are beginning to affect consumer prices. Gold is a popular hedge against inflation and uncertainty, but its appeal has been diminished by higher interest rates. Ryosei Acazawa, Japan's chief trade negotiator, met with U.S. Secretary of Commerce Howard Lutnick to discuss U.S. Tariffs. Tokyo is racing to avoid a 25% tax that will be levied if a deal cannot be reached by the August 1 deadline. Palladium increased by 0.1%, to $1,232.02 after reaching its highest price since October 2023. Haberkorn stated that fears of an escalating conflict in Russia, which is a major exporter of palladium, fuel supply concerns, driving prices up. Silver fell 0.8%, to $37.64 an ounce, and platinum dropped 0.6%, to $1,408.00. (Reporting by Sarah Qureshi in Bengaluru; Editing by Tasim Zahid)
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The oldest climate fund in the world targets wildlife bonds to every country in Africa
Global Environment Facility (GEF), the oldest multilateral climate change fund in the world, plans to issue a new round of wildlife conservation bonds as a way to assist African countries with saving endangered species and eco-systems. In 2022, the World Bank backed rhino bond was the first of many wildlife bonds that provide low-cost funding in exchange for reducing poaching and other measures. Last month, the GEF approved a conservation plan for lemurs in Madagascar. Fred Boltz is the head of programming for the GEF which is affiliated with the World Bank. He told African environment ministers on the sidelines a meeting that the GEF aims to provide one project per 54 African countries. He said that such a move would need an investment of 150 million dollars from GEF. This would be leveraged ten times, providing a total amount of $1.5 billion through borrowing. Climate finance experts claim that because wildlife bonds do not usually go into the government's books, they can provide much needed financing to developing countries. The payouts are directly related to the conservation of the species. The better the results, the less money the government is required to pay. Boltz stated that GEF hopes to expand the program so as to cover entire ecosystems, such as wetlands. Funding cuts from the United States, other major economies, and international aid agencies are threatening some conservation projects. Boltz stated that "many countries ask, suggest that it may be difficult to maintain the last level (of species) replenishment in this challenging official development assistance environment" and that we could need to do more with a smaller budget. The GEF invested $7.7 billion total in Africa for various projects. One of these was an $85million effort to combat desertification in Sahel. The organisation is currently asking donors to replenish their cash reserves for the next four-year programme cycle, which will begin next year. The last fundraising campaign for the current cycle raised $5.3billion, an increase of over 30% from its previous operating period. This is due to a rise in support for international efforts aimed at meeting nature and climate goals. The U.S. was the largest donor, with $700 million. Reporting by Duncan Miriri, Editing by Marc Jones and Alison Williams
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Wall Street watches Netflix as Dollar recovers after Fed fear
The European stock market recovered from a four-day loss streak thanks to a healthy earnings report. Wall Street watched Netflix, and the dollar rose after U.S. president Donald Trump denied rumors that he would fire Fed chief Jerome Powell. Traders also had just seen a good batch of U.S. Retail Sales and Jobless Claims numbers, which provided more insight into how tariffs impact the economy. This gave a bit more energy to the S&P 500 and greenback futures. The STOXX 600 index of Europe was already enjoying a successful day, after records orders from Swiss engineering giant ABB and profits of $13.5 billion at Taiwanese semiconductor giant TSMC added to the growing optimism over a potential EU-US trade agreement. GE Aerospace also raised its profit forecast ahead of the U.S. open bell, although the currency markets remained the broader focal point. Kit Juckes, of Societe Generale, described the Wednesday "madness" that was sparked by the reports that Trump would be removing the Fed chief as "madness". The dollar is now trading below $1.16 per euro. The yen strengthened further as the polls showed that Prime Minister Shigeru Shiba's government was at risk of losing the majority in the upper chamber in upcoming elections. It fell to its lowest level since April, 148.73 per dollar. The data also showed that the Asian nation was starting to feel the effects of tariffs, with exports down for the second consecutive month. Meanwhile, the Australian dollar fell 1% over night after the weak employment figures there. Juckes stated that "the market is now solidly short of the dollar, and as we enter high summer people are beginning to buy back some." Watching NETFLIX Netflix also owed earnings in the future. Chris Weston said that the broker Pepperstone's head of research, Chris Weston, stated the company has outperformed S&P 500 by 33 percentage points year-to date. Analysts are still bullish and the firm "will have to blow out the lights with a solid raise and beat," he added. Wall Street futures pointed to a modestly higher start in the second half of the year, with Nasdaq expected to continue its recent streak of record highs. TSMC shares listed in the United States gained 4% after its impressive results. Advanced Micro Devices gained 1.2% while Nvidia, worth $4 trillion, rose 0.7%. After a four-day slide, European stocks rose by a comfortable 0.7%. Nikkei in Japan and bluechips in Taiwan and China all saw overnight gains of 0.3% to 0.6%. Alimentation Couche-Tard, a Canadian retailer, withdrew a $47 billion bid to take over Seven & i Holdings. The company cited a lack constructive engagement from the operator of 7-Eleven convenient stores. Seven & i Holdings shares fell to a low of three months and finished down by over 9%. Trump's denial of Powell's speculation helped calm volatile markets. However, he left the door open for the possibility of removing him. He also renewed his criticism of Powell as the U.S. central bank chief who has not cut interest rates. Francesco Pesole, an ING analyst, said that "after yesterday's panic, markets are probably even more resistant to headlines about this topic." In that hour, however, we saw what we expected: the steepening of the U.S. Yield Curve and a sharp drop in the dollar. The benchmark 10-year Treasury rate barely moved on U.S. Retail numbers, sitting just below 4.47%. German Bund yields remained steady at 2.695% after reaching their highest level since late March this week. Brent oil prices lost their initial momentum and stalled at $68.46 per barrel. The safe-haven gold price dropped almost 1%, to $3,314 per ounce.
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Argentina's mining exports will top $5 billion by 2025, despite lithium struggles. Industry body claims
The president of the Argentine Chamber of Mining Companies, CAEM, predicted that Argentina's mining exports would exceed $5 billion by 2025. This is up from $4.6 in 2024. Roberto Cacciola, in an interview with he said that the main mining exports of Argentina, gold and silver, would remain the same or even decline slightly by 2025, due to the maturation process for mining projects. However, the rising prices would make up the volume decrease. Cacciola stated that the mining exports could reach $5 or $5.2 billion this year. He said that he expected the opposite for lithium. He expects a rise in production when prices are falling. He added: "In terms volume, there are no significant changes for gold or silver. There may be a slight reduction. In lithium, volume is increasing, but the price has dropped, which will keep exports of lithium at a level similar to that in 2024." According to the National Mining Secretariat, in 2024 gold contributed $3.14billion, or 68%, silver $641m, or 14%, and lithium $631m, or 13.6%. The libertarian government of Argentine president Javier Milei is trying to boost the promising mine sector in order to increase income, which it desperately needs to maintain macroeconomic stability. It created the Large Investment Incentive Regime, which offers tax, exchange rate, and customs benefits to investments exceeding $200 million. The government has approved only the Anglo-Australian company Rio Tinto's Rincon Project, a $2.7billion investment in Salta, a northern province, for construction of a Lithium Carbonate Plant. Cacciola stated that the fall in lithium prices caused by an excess of supply and a lower demand for electric cars has delayed investments. In the last two years, China's oversupply has caused prices to fall more than 90%. "Lithium firms are working hard to break even or may be running a deficit. He said that this is a temporary situation, but a reality. He said, "Everyone thought about expanding and growing. Now they are thinking about survival." "Some expansions were delayed. "We're not going to be able to recreate the same euphoria as in 2022-2023 because of the sharp drop (in prices)." Argentina, along with Chile and Bolivia is part of "the lithium triangle", which contains the largest reserves in the world. The country also has world class copper projects. However, none of them are currently in production. Cacciola estimates that the government would extend by an additional year the deadline for submitting projects to the RIGI, which expires on July 8, 2026. This is because many projects – especially copper – have expressed interest in participating in the incentive scheme. McEwen Copper, a Canadian company, has only applied for Los Azules to be included in the RIGI. The RIGI is operating. It's planned, I believe. Cacciola stated that he did not see any obstacles to the extension of the program. He added that the copper projects were "all set to be submitted, they just need some definitions." (Report by Lucila SIGAL; edited by Nicolas Misculin & Jamie Freed).
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US retail sales exceeded expectations in June
Retail sales in the United States increased more than anticipated in June. However, some of this increase was likely due to higher prices on some goods that were subjected to tariffs. The Commerce Department's Census Bureau reported on Thursday that retail sales rose 0.6% in June after a 0.9% decline unrevised in May. Retail sales, which are mainly goods and not adjusted for inflation but are a major part of retail sales, were expected to increase by 0.1%, according to economists polled. The rise in retail sales could have been due to price increases driven by tariffs rather than volume. Inflation data released this week shows that the prices of goods affected by tariffs, such as household goods, appliances, sporting equipment, and toys, rose significantly in June. Retail sales, excluding automobiles and gasoline, building supplies, food services, and building materials, increased by 0.5% in June after a downwardly-revised 0.2% increase in May. The core retail sales component, which is closest to the consumer spending component in the gross domestic product, was previously reported as having increased by 0.4%. Sam Bullard is a senior economist with Wells Fargo. He said: "The household sector appears to still be holding up but there appears to have been a moderated in consumer spending." (Reporting and editing by Nick Zieminski, Lucia Mutikani)
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Russell: China's mixed commodities data shows soft steel and strong iron ore
China's June industrial output data and commodity imports have produced contrasting figures that make it difficult to get an accurate read on the second largest economy in the world. Iron ore imports and steel production appear to be telling contrasting stories. While imports of this key raw material surged to their highest level in the year, the decline in steel production was evident. The first six months of this year saw a 5% increase in coal production compared to 2024. However, thermal power generation - which is mostly coal-fired – dropped by 2.4%. The output of aluminium rose by 3.4% from the previous year and by 3.3% for the first six months, while construction materials like cement and glass fell by 5%. Decoding the mixed signals in the data requires determining whether they are a part of long-term trends or are driven by short-term influences. China's crude output of steel fell by 3.9% from May to June and by 9.2% compared to the same month 2024. This was the biggest drop year-on-year since August. Last month, the world's biggest steel producer produced 83.18 millions metric tons crude steel, which brought first-half output to 514.83 tons, a decrease of 3% compared with last year. The story of the still-struggling residential construction sector is suited to a softening steel production, but this does not explain why imports of iron ore have been so robust. China, which imports 75% of the global seaborne ore, saw its arrivals increase by 8% from May to June, with 105.95 millions tons of iron ore. This is the highest month of 2025. Iron ore imports, however, are down 3% to 592.21 millions tons in the first half 2025. The recent rise in iron ore prices can be explained by the Singapore Exchange contracts, which have shown a downward trend after reaching their highest level in 2025 at $107.81 per ton on 12th February. Steel prices dropped to as low as $97.95 in July, but recovered since then. They ended the day at $97.95 Wednesday amid hopes that Beijing's stimulus plans will boost demand for steel in the second half. If the annual output of steel is to stay around the informal cap of 1 billion tons, then the second half production will be lower than the first-half's 514.83 millions tons. SteelHome consultants SteelHome monitor port stocks to ensure that iron ore inventory levels are still high. The weekly total of 131.9 millions tons, down from 150.02 in the same period last year, is a drop. COAL MINING The coal production grew 5% to 2.4 billion tonnes in the first half of 2025, a seemingly contradictory increase. Thermal power, which is predominantly coal-fired and uses only a little natural gas, has dropped by 2.4%. The total power generated in the first half of the year increased by 0.8%, while hydropower dropped by 2.9%. It is clear that renewables like wind and solar have gained more share. Why would China produce record coal volumes at a moment when the consumption is declining? Two main reasons are at play. The first is that the domestic coal price remains relatively low. This keeps the downward pressure on the electricity cost, especially when the major users of power, such as the manufacturers, are experiencing uncertainty due to the US trade war. Thermal coal prices in Qinhuangdao In June, the yuan fell to a low of 610 ($84.96). Although it has recovered to 625 on Wednesday, this is still almost 20% below its January 2025 peak of 775 yuan. Second, the increased domestic coal production will reduce the need for imports from abroad. China is the largest importer of coal in the world. This has put pressure on seaborne prices. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of a columnist, who is also an author.
VCI, the German chemical lobby, predicts that there will be no recovery in the sector before 2026
Germany's chemical industry lobby VCI does not expect a sector upswing before 2026, even though the rapid downtrend the chemical-pharmaceutical industry has seen in recent years seems to be over, it said on Thursday.
VCI reported that the chemical industry, including pharmaceuticals, recorded sales of 107.6 billion euros ($124.66 billion) during the first half 2025. This was down 0.5% compared to a year ago, due to lower output in industry as companies announced plant closures and layoffs.
The situation is still tense. "Our industry has produced about 15 percent less in the first half of the year than it did in 2018, the year before the crisis," Markus Steilemann said in a Covestro press release.
Chemical association reported that the industry saw a 1% decline in production while prices for producers remained unchanged.
Third-largest industrial sector of Europe's economic powerhouse, Germany, can be viewed as a bellwether. It produces materials components that are used across various industries ranging from agriculture and textiles to automotive and construction.
Germany's BASF Covestro, and Brenntag have recently lowered their forecasts for the year, citing persistent economic weakness in the world, low demand, and U.S. Tariffs. There are no signs that a recovery is imminent.
Steilemann stated that "the business location Germany is too expensive when compared to other countries." He blamed this on the excessive bureaucracy and non-competitive prices of energy, as well as high taxes, labor costs, and raw material prices.
In order to overcome these challenges, Germany has implemented a number of fiscal measures in order to stimulate the slowing economy. These include a 500 billion Euro infrastructure fund, launched in March, and a 46 Billion Euro tax relief package, approved in June, to support businesses until 2029.
Anna Wolf, an industry expert from the Ifo Institute of Economic Research, says that the German business community is most excited about the new infrastructure fund, and the electricity tax reductions for industry. $1 = 0.8626 Euros (Reporting and editing by Anastasiia Kozova and Isabel Demetz)
(source: Reuters)