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South Korea's political turmoil forces companies to act on their own tariff issues
South Korea's leaders of business are stepping up to counter the aggressive trade policies of U.S. president Donald Trump. They have hired his former aides, and they are lobbying Republican States out frustration at delays from their own government. Trump's sometimes indiscriminate and sweeping trade measures have sparked a debate about how much international capitals can rely on the U.S., from politics to trade. South Korea is facing the most serious political crisis since the 1970s after President Yoon Suk Yeol was impeached and briefly declared martial law in December. Yoon's decision to align more closely with Washington amid the trade tensions between China & the U.S., has increased South Korea's dependence on the U.S., which accountedfornearly 20 percent of its total exports in the past year, making its businesses more susceptible to possible tariff changes. A senior executive of a major conglomerate, who asked not to be named due to the sensitive nature of the topic, said: "We're frustrated." The executive stated that the government had not discussed concrete plans with representatives of corporate companies to bring Trump to a negotiating table. Officials from South Korean companies said that they are also concerned about the lack of support from their government when other leaders, such as those from Japan and India, have already met Trump to try and avoid damaging U.S. Tariffs. Choi Sangmok, the Acting President of South Korea, has not yet spoken directly to Trump. He told lawmakers in early February that the acting leadership is limited in its ability to respond to changes to the U.S. Tariff System. He claimed that Korea could leverage its U.S. energy imports and investments in negotiations. South Korea's Industry Minister will Travelling is a great way to meet new people. The ministry announced on Tuesday that it will be traveling to the U.S. in the coming week to discuss ways to increase cooperation in energy and shipbuilding and to push for a steel tariff exemption. Two sources said that amid uncertainty about how soon the political crisis in Korea would be resolved, the Korean business association sent a group of executives from companies like Samsung, LG and SK to Washington, where they met with U.S. Commerce Secretary Howard Lutnick. According to a source, Lutnick promoted investment in the U.S. at the meeting. The Korean delegation team's request was not immediately known. Separate meetings are being organized by companies to meet with U.S. Government officials. In a letter sent to shareholders in early November, Jose Munoz - the former U.S. head of Hyundai Motor who became the first foreign CEO for the South Korean company in November - said that the firm was in dialogue with the U.S. government to strengthen its significant investments, jobs creation, and economic impact. Hyundai promoted Sung Kim to the position of president responsible for global government affairs, an ex-U.S. diplomat from Trump's first administration. Three people with knowledge of the matter said that the company was looking to host a factory opening in Georgia. Two of the sources claimed the automaker wanted to invite Trump to attend the event. South Korea has a number of major industries, including autos, semiconductors, and steel. The Trump administration is currently reviewing the import duties on these products. Hyundai has said that no decision about the ceremony has been taken. A major business conglomerate's executive said that its affiliates were also considering holding a Tennessee outreach event to promote their combined investments made in the Republican State as part of efforts at the federal level to gain political influence. In a Bind Analysts predict that a court ruling will be issued in March, deciding whether Yoon should be ejected or if his presidential powers are restored. If Yoon is removed from office, a 60-day election should be held to select a new President. When Trump began his first term in 2017, Park Geun Hye was undergoing an impeachment hearing. Former trade minister Yeo Ha-koo said that the Trump administration had moved more slowly with its tariff policies. This gave South Korea time to move, and helped it to win an exemption from steel tariffs in exchange for a quota which put a limit on export volumes to America. Yeo stated, "Now they're moving at lightning-speed." Unofficially, a Seoul government official stated that it was "having many difficulties" and that there were concerns about the future president not following through with commitments made by the interim government to the U.S. Scott A. Snyder of the Korea Economic Institute of America, a Washington think tank, stated that the lack of communication between leaders in the two countries is a major obstacle. He said that "that is something which just has to be waited," adding that it would be best for Korea to "lie low and avoid picking up its head in many of these areas."
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Lynas Rare Earths profits plunge, but misses consensus over high costs and weak prices
Australia's Lynas Rare Earths reported a steeper-than-expected drop in its first-half profit on Wednesday, hurt by weak market prices for the metals due to subdued demand from China, with higher operating costs further eating into its earnings. The largest rare earths producer outside China, reported a net loss after tax of A$5,9 million ($3.74million) for the six-month period ending December 31. This was significantly lower than the Visible Alpha consensus A$36.2 million. The profit was down by a large amount from the previous year's A$39.54million. The market conditions for rare Earths have been difficult over the last couple of years because of weak China demand, and a softer outlook on electric vehicles outside the second largest economy in the world. Amanda Lacaze, Chief Executive Officer of the company, said that "the rare earths market is still subject to complex influences". She also stated that "the current challenges are short-term problems". The cost of sales for the rare earth miner increased by 29%, to A$205.3 Million. This was due to higher sales of neodymium & praseodymium(NdPr), and an allowance of A$5M against low-value inventories and work in progress. Its production costs increased further with the addition of new facilities in Mt Weld and Kalgoorlie, as well as Malaysia. The net sales revenue was A$254.3m, 8% more than the previous year. However, gains were restricted by the lower average China domestic NdPr. Analysts at Jefferies said that "market conditions remain unpredictable and Lynas will continue to be successful if it can balance its growth ambitions with disciplined management".
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Wall Street closes mixed with European shares gaining; US yields and dollar falling
On Tuesday, two major Wall Street indices experienced their fourth consecutive decline as Treasury yields and dollar fell on signs of a slowing U.S. economy and uncertainty about Trump administration policies. The euro strengthened after the German election results, while European shares fell. The price of oil fell to its lowest level in two months as fears about a slowing economy were fueled by weak economic data from the U.S. The market was jittery after Nvidia announced its fourth-quarter earnings results on Wednesday. The Federal Reserve's mandate to control inflation was also a focus of Friday's release of the Personal Consumption Spending Price Index. The Nasdaq Composite dropped 260.54, or 1.5%, points to 19,026.39 and the S&P 500 fell 28.00 points or 0.47%. The mood was exacerbated by a weak reading on consumer confidence in the United States. The Dow Jones Industrial Average (DJI) rose by 159.95 points or 0.37% to 43,621.16. The 10-year yield dropped 9.5 basis to 4,298%, while the 2-year yield, which is typically in line with Fed interest rate expectations, fell 7.2 to 4,096%. European shares closed 0.2% higher on Tuesday after gains by banks and healthcare companies off-set declines by technology stocks. Dollar index was impacted by the soft U.S. data, which measures greenbacks against a basket currencies. Due to its high tariff risk, the euro is among the worst performing major currencies against dollars. The planned tariffs on U.S. imported goods by President Donald Trump could push up inflation in the United States, and his mass firings may impact the labor markets, at a time when the Federal Reserve is looking to reduce interest rates. The tension between the U.S., Europe and Russia has also increased over Ukraine. How to broker a ceasefire with Russia three years after Moscow invaded its neighbor is a major issue. Chris Beauchamp is the chief strategist of IG. He says that the market sentiment has been fragile, but volatility has been minimal. He said: "This is in stark contrast to recent years, when crises seemed to occur one at a moment and you could deal with them as they happened. Now, it seems like 'everything', everywhere at once," REASONS TO BE OPTIMISTIC? CBOE’s VIX volatility indicator rose to its highest level in a week on Tuesday. However, it has not yet reached the high of late January. Beauchamp says there are many reasons to be hopeful. If you look at the earnings season, everything has gone well. The headlines, and signs of a rift between Europe and the U.S., don't directly impact... stocks but they make the mood more frantic. While negative surprises have increased in the U.S. economy this month. This is due to unwelcome increases in consumer inflation expectations, and most recently a decline in business activity. Treasury Secretary Scott Bessent said on Tuesday that U.S. economic indicators are misleading. He cited interest rate volatility and inflation, as well as job growth in the government sector. Investors have been questioning whether China's low cost AI model, DeepSeek, is worth the huge investment. A lot will depend on Nvidia’s fourth-quarter results. Chinese retail investors have been pouring money into AI-linked stocks in the domestic market, pushing the Hong Kong equity index up to a three-year-high. Brent futures dropped $1.76 or 2.4% to settle at $73.02 a barrel, while U.S. West Texas Intermediate Crude fell $1.77 or 2.5% to settle $68.93. Spot gold dropped 0.01% to 2,914.69 dollars an ounce. U.S. Gold futures ended 1.5% lower, at $2 918.80. Gold reached its highest level of $2,956.15 at the beginning of this week. Bitcoin rose 0.2% after falling below $87,000.
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Lucid CEO steps down; company expects production of vehicles to double in this year
Lucid Group, a maker of electric vehicles, announced on Tuesday that its Chief Executive Officer Peter Rawlinson would step down. The company also forecasted a more than doubled vehicle production this year. Shares in the company rose 11% during extended trading. Marc Winterhoff will be the interim CEO. Rawlinson stated, "Now that Lucid Gravity has been launched successfully, I've decided it is the right time to retire from my Lucid roles." The company also predicted that vehicle production would be around 20,000 this year, compared to around 9,000 vehicles it produced in 2024. Taoufiq Bossaid, a veteran finance professional, was hired as the company's chief financial officer in November. Boussaid served as group CFO at the Belgian listed steel and coatings company NV Bekaert SA, where he helped reduce debt. Lucid is trying to diversify their product line and enter the SUV market, competing with Rivian R1S and Tesla model X. Rivian, for example, is aggressively cutting costs to increase profits. Lucid's revenue was $234.5 millions, exceeding Wall Street's expectations of only $214.2 according to data compiled and analyzed by LSEG. The company posted a quarterly loss of $397.2 million, compared to a $653.8-million loss a year earlier. Stocks of the company have fallen by around 8% this year, after falling over 28% last year. The firm had difficulty selling its luxury sedans and was forced to lower prices in order to attract customers. The demand for pure battery vehicles in the U.S. is slow, as consumers are gravitating more towards hybrids due to high interest rates.
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Colombia's Petro names the interior minister as the energy minister leaves in a reshuffle
Sources within the office of President Gustavo Petro confirmed on Tuesday that Armando Benedetto has been named as Colombia's new Interior Minister. This confirms his place in the inner circle of the leftist despite scandals surrounding the former lawmaker and opposition from other members in the cabinet. Andres Camacho, the Energy Minister, said on X Tuesday in a posting that Petro had accepted his resignation as part of a cabinet reshuffle. Camacho thanked President Macron and praised the progress made in renewable energy production. Petro requested that all of his ministers submit their resignations in early April, following a tense cabinet meeting televised during which several high-ranking officials objected Benedetti’s presence as Petro’s then-head-of-office and Laura Sarabia’s appointment as Foreign Minister. Benedetti replaces Juan Fernando Cristo who, along with outgoing Environment Ministry Susana Muhamad, resigned. Petro has changed at least seven members of his cabinet, including the defense minister. Muhamad stated during the meeting on television that she was against the appointment of Benedetti as cabinet member due to allegations of violence towards women and influence-peddling. Benedetti has denied all wrongdoing. Benedetti and Sarabia were briefly forced out of government in 2023 after a probe was launched into the disappearance of money and illegal phone interceptions. Benedetti's role will be to help Petro push through various complex reforms, including the beleaguered healthcare system. Petro has yet to name a successor for Camacho. Reporting by Luis Jaime Acosta, Writing by Julia Symmes Cobb & Marguerita Choy
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Sources say that Zelenskiy will travel to the US to meet Trump to discuss a mineral deal.
Two sources familiar with the matter confirmed on Tuesday that Ukrainian President Volodymyr Zelenskiy will travel to Washington, D.C. on Friday to meet U.S. president Donald Trump. This follows an agreement between officials on terms of a draft mineral deal. The White House declined to comment. The mineral deal is central to Kyiv’s efforts to win U.S. backing as Trump seeks a rapid end to the war with Russia. Trump and Zelenskiy had a heated exchange of words last week. Trump called Zelenskiy a unpopular "dictator", who had to make a quick deal with the Ukrainian government or risk losing his country. The Ukrainian leader responded that the U.S. President was in a "disinformation" bubble. According to a source who asked for anonymity in order to discuss sensitive issues, the White House was the one that proposed the visit. Source: Both sides have approved the draft and instructed that it be signed. Trump is seeking hundreds of millions of dollars in compensation for Washington's support. A source with knowledge of the situation said that Zelenskiy could meet Capitol Hill lawmakers, but the exact schedule was not yet finalized. Reporting by Tom Balmforth, Erin Banco and David Gregorio; editing by David Gregorio
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Wall Street US yields fall amid uncertainty about Trump and growth; euro gains
The major Wall Street indexes fell on Tuesday. The tech-heavy Nasdaq hit a six-week low as Treasury yields plunged amid signs of a slowing U.S. economy and uncertainty about Trump administration policies. The euro strengthened after the German election results, while European shares fell. Worries about U.S. Tariffs caused oil prices to fall by 3%. The market was tense after Wednesday's market closure due to Nvidia’s fourth-quarter results. The release of the Personal Consumption Spending Price Index on Friday, which is monitored by the Federal Reserve to help control inflation, also dominated market attention. By 2:39 pm, the Nasdaq Composite had fallen 225.96, or 1.17 percent, and the S&P 500 was down 22.15, or 0.37 percent, at 5,961.19, while S&P 500 dropped 22.15, or 0.37% to 5,961.19, ET (1939 GMT). Investors were temporarily rattled by the order of U.S. president Donald Trump to restrict Chinese investment in strategic U.S. industries such as chipsets, AI and aerospace. Investors are constantly looking for the smallest of differences to identify investable catalysts. In a recent note, Nicholas Colas said that this phenomenon is favoring non-US stocks. U.S. Single-family House Prices Increased in December The housing market is growing, but the cost of mortgages has increased. The mood was exacerbated by a weak reading on consumer confidence in the United States. Will Campernolle, FHN Financial's macro strategist, said Tuesday that "bearish growth sentiment" - perhaps from Friday's poor PMIs or geopolitical concerns - will linger until investors are convinced otherwise. He said that the Treasury coupon auctions scheduled for Tuesday and Wednesday would test the strength of the rally. This will be the case at least until Friday's PCE inflation report. The Dow Jones Industrial Average increased by 150.19 points or 0.35% to 43,611.40. The 10-year yield fell 8.3 basis point to 4.31%, while the yield on the 2-year notes, which moves typically in line with expectations of interest rates for the Fed's, dropped 6.4 basis points. Shares of European companies The market closed down 0.2% Tuesday after gains by banks and healthcare companies off-set declines by technology stocks. Dollar index was impacted by the soft U.S. data, which measures greenbacks against a basket currencies. Due to its high tariff risk, the euro is among the worst performing major currencies against dollars. Trump's proposed duties on U.S. imported goods could push up inflation in the United States, and his mass firings from government positions could have an impact on the labor market just as the Federal Reserve is looking to reduce interest rates. The tension between the U.S., Europe and Russia has also increased over Ukraine. How to broker a ceasefire with Russia three years after Moscow invaded its neighbor is a major issue. Chris Beauchamp is the chief strategist of IG. He says that the market sentiment has been fragile, but volatility has been minimal. He said: "This is in stark contrast to recent years, when crises seemed to occur one at a moment and you could deal with them as they happened. Now, it seems like 'everything', everywhere at once," REASONS TO BE OPTIMISTIC? CBOE’s VIX volatility indicator rose to its highest level in a week on Tuesday. However, it has not yet reached the highs of late January. Beauchamp says there are many reasons to be hopeful. If you look at the earnings season, everything has gone well. The headlines, and signs of fracture between Europe, and the U.S., don't directly impact... stocks but they make sentiment more frantic. While negative surprises have increased in the U.S. economy this month. This is due to unwelcome increases in consumer inflation expectations, and most recently a decline in business activity. The futures markets shows that traders now expect the Fed will cut rates by 50 basis points in this year. This is up from 40 basis points a week earlier. Treasury Secretary Scott Bessent said on Tuesday that U.S. economic indicators are misleading. He cited interest rate volatility and inflation, as well as job growth in the government sector. Investors have been questioning whether China's low cost AI model, DeepSeek, is worth the huge investment. A lot will depend on Nvidia’s fourth-quarter results. Chinese retail investors have been pouring money into AI-related stocks on the local market in the last month. This has sent the Hong Kong equity index up to a three-year-high. U.S. crude oil fell by 2.42%, to $68.99 per barrel. Brent oil futures fell 2.29% to $75.07 per barrel after hitting a record high $2,956.15 per barrel on Monday. Gold fell to its lowest point in more than a week. Spot gold fell 1.42%, to $2.909.22 per ounce. U.S. Gold Futures closed 1.5% lower, at $2.918.80. Bitcoin pared losses after falling to below $87,000 as traders processed last week's hacking of $1.5 billion in ether from cryptocurrency exchange Bybit.
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In the Democratic Republic of Congo, 50 people have died from two clusters of unknown illnesses
The World Health Organization reported on Tuesday that more than 50 deaths have occurred in the past two weeks, in two clusters of illnesses with an unknown cause in the northwest Democratic Republic of Congo. In a WHO bulletin, it was reported that as of 16 February there were 431 cases in two separate outbreaks in remote villages located in different health zones within the province of Equateur. The country is about the same size as Western Europe. "The outbreaks pose a serious public health risk. Cases have risen rapidly in a matter of days." Tarik Jasarevic, WHO spokesperson told a press briefing on Monday that the exact cause is still unknown. He noted that the villages' surveillance and health infrastructure is limited. Out of 419 reported cases, 45 deaths were caused by the larger outbreak. It was first reported in Bomate village, Basankusu, Equateur, on 13th February. WHO reported that almost half of the 419 cases died within 48-hours after becoming ill. Symptoms included fever, pain, diarrhoea, and vomiting. The WHO reported that 13 samples tested negative for Ebola or Marburg. However, local health teams are investigating other possible causes including malaria, food-poisoning, typhoid and other viral haemorrhagic diseases. WHO reported that on January 21 an earlier outbreak involving 12 cases and eight deaths was reported in Boloko Village, Bolomba Health Zone. The outbreak was traced to three deaths of children aged under five in the village that occurred earlier that month. The symptoms of fever, fatigue and haemorrhagic manifestations such as nosebleeds or vomiting blood were all present. According to reports, the children had consumed a dead bat prior to becoming ill. All of the other cases, which had similar symptoms, were also found in Dondo and the same village. The samples from the patients were all negative at the end of January. WHO has said that no link between the two clusters was established. We are investigating whether this is a new infection or if it's a toxic agent. "We have to determine what can be done, and when WHO can help," Jasarevic said. A malaria outbreak reported in Congo last December has been confirmed. Reporting by Jennifer Rigby, Olivia Le Poidevin and Richard Chang; editing by Richard Chang
Saipem, an Italian company, reinstates its dividend before merging with Subsea 7.
Italian energy contractor Saipem has announced that it will resume dividend payments after a 4-year hiatus.
The group announced that it would pay out 333 million Euros ($350 million) as dividends in this year. The group expects to pay another $300 million by 2026.
The company also pledged to reduce its gross debt by 650 million euro by paying all maturities due between 2025 and 27 to raise its credit rating.
The merger of Saipem and Subsea 7, announced at the weekend, creates a global leader in offshore energy services.
Saipem has published its results for the past year and updated strategy. This does not include the merger that is expected to be completed in the second half 2026.
Saipem's goal is to offer a project management consultancy in the period 2025-2028 and to be more selective when it comes to onshore engineering and building contracts, to increase margins and to reduce risk.
The company plans to generate revenues of 15 billion euro and earnings before taxes, interest, depreciation, and amortization of 1.6 billion euro this year.
Saipem finished 2024 with record orders, increasing its backlog from 34 billion euros to a new high. The adjusted EBITDA increased by 44% on a year-on-year basis to 1.3 billion euro.
In a press release, it stated that "Saipem’s performance in 2020 confirms... the trajectory for growth and margin recovery."
In 2022, the group, which counts energy company Eni and Italian state banker CDP as its key investors, had to sell assets and raise 2 billion euro to fill a hole on its balance sheet for 2021 due to cost overruns in several contracts.
Since then, it has restructured its operations under a newly appointed management team. It is now on track to return to a full-year profit by 2023.
(source: Reuters)