Latest News
-
As focus shifts from Asian currencies, stocks drift and the dollar stabilizes
Investors re-emphasised concerns over U.S. trade tariffs, and their impact on the economy. These fears, combined with the pledges of key oil producers to increase supply, kept crude prices near their four-year-lows. After the Taiwan dollar surged in recent sessions, the focus has shifted in Asia to currencies. This has stoked rumors that a regional revaluation was in the works to gain U.S. concessions on trade. The rally has suggested that a major unwinding of the economy is underway. It also sheds light on a single economy, where years with large trade surpluses built up large dollar long positions for exporters and insurance companies. These positions are now being questioned and put on edge. On Tuesday, the heat was turned up on Hong Kong. The de facto central banks bought $7.8 Billion to prevent the local currency strengthening and breaking the peg with the greenback. Charu Chanana is the chief investment strategist of Saxo Singapore. She said that Asian FX was where it's at today. If these currencies continue to strengthen sharply, this could cause fears of a "reverse Asian currency crises", with possible ripple effects on the bond market, amid fears that Asian Institutions reassess unhedged Treasury holdings. China's Yuan has strengthened on the mainland to its highest rate since March 20, at 7.23 dollars. In early trading on February 2, the Taiwan dollar reached 30 to the dollar, which was not far off from its near three-year peak of 29,59 that it had touched on Monday. It also grew by 8% in two days. The MSCI broadest Asia-Pacific share index outside Japan fell by 0.2% with Japan on holiday. Taiwan stocks slipped 0.3%. The blue-chip index opened slightly higher after the Chinese markets returned from their holiday. Hong Kong's Hang Seng fell 0.2%. Investors have been focused on the possibility that trade tensions could be eased between the U.S. Investors are left to try and make sense of headlines from the White House, but with little information. Donald Trump, the U.S. president, said on Sunday Washington was meeting with many nations, including China. His main priority in dealing with China is to get a fair deal. Trump also imposed a 100% tariff Monday on movies produced outside of the United States, but provided little clarity about how the levies will be implemented. Saxo's Chanana says tariff headlines drive the market more than anything else. The tactical risk-reward ratio could still tilt to the upside if hard data continues to hold up and sentiment is buoyed by trade deal hopes. Data released on Monday revealed that the U.S. service sector grew in April. Meanwhile, a measure of the prices businesses paid for goods and services soared to its highest level in over two years. This indicates a rise in inflation pressures caused by tariffs. The Federal Reserve will announce its policy on Wednesday. It is expected that the central bank will keep interest rates unchanged, but the focus of attention will be how policymakers navigate a path characterized by tariffs. The markets are looking for confirmation that the Fed will cut rates in response to any tariff-induced price shock, as it is already priced into the markets. This was stated by Kyle Rodda senior financial market analyst at Capital.com. LSEG data revealed that traders are pricing 75 basis points in easing for this year, with the first move possible in July. Oil prices, which had hit four-year lows the previous session due to OPEC+'s decision to increase output, were stable on Tuesday. The gold price reached a new high in a week due to the demand for safe havens.
-
Copper rises on US-China dialogue hopes
Prices of copper edged up on Tuesday, as positive signs about U.S.-China talks boosted sentiment. However, lingering worries about the broader impact of trade disputes on the economy limited gains. As of 1300 GMT, the benchmark copper price on London Metal Exchange (LME), was up 0.7%, to $9,431 per metric ton. U.S. Treasury secretary Scott Bessent defended Trump's trade tariffs on Monday, pointing out that his larger agenda, including tax cuts, would lead to long-term growth. China's Commerce Ministry announced on Friday that Beijing was "evaluating" Washington's offer to hold discussions over President Donald Trump's tariffs of 145%. The Commerce Ministry stated that the United States had approached China for talks about Trump's tariffs, and Beijing was ready to talk. This could signal a possible de-escalation of the trade war. A trader stated that "it doesn't appear to be a smooth road for trade talks, and investors are becoming increasingly concerned about the potential negative effects of trade on global economic expansion and metal demand." The U.S. economy shrank for the first time since three years in the first quarter amid an import flood to avoid Trump's tariffs. And the International Monetary Fund forecasts that the U.S. Gross Domestic Product will only grow by 1.8% by 2025. Other London metals saw aluminium rise 0.6%, to $2.445 per ton. Zinc rose 1.4%, to $2.645, while lead rose 0.6%, to $1.948. Tin was up 3.6%, to $31,795; and nickel rose by 1.2%, to $15.665 per ton. The Shanghai Futures Exchange's (SHFE) most traded copper contract was unchanged at 77.570 yuan per ton. SHFE aluminium fell by 0.7%, to 19,850 Chinese yuan per ton. Zinc lost 0.5%, to 22,385 Yuan. Lead dropped 0.5%, to 16,765 Yuan. Nickel rose 0.4%, to 124 500 Yuan. Tin was up 0.7%, to 260,000 Yan. ($1 = 7.2706 Chinese Yuan) (Reporting and editing by Mrigank Dahniwala; Violet Li, Lewis Jackson)
-
Oil prices stabilize after dropping to a four-year low in the previous session
The price of oil was stable on Tuesday, after it hit four-year lows the previous session. This was due to a decision by OPEC+ to increase output. This decision stoked fears of an oversupply during a period when U.S. Tariffs are causing concern about demand. Brent crude futures increased 10 cents, to $60.33 per barrel at 0050 GMT. U.S. West Texas intermediate crude also rose 10 cents, to $57.23 per barrel. On Monday, both benchmarks reached their lowest levels since February 2021. OPEC+ decided on Saturday to accelerate oil production increases for a second month in a row, increasing output by 411,000 barrels / day (bpd) in June. The increase in June by eight members of the OPEC+, which includes allies like Russia, will bring the combined increases for April, may and June to 960,000 bpd. Calculations show that this represents a 44% reduction of the 2.2m bpd in various cuts that have been agreed upon since 2022. OPEC+ said that the group may fully undo its voluntary reductions by the end October if member countries do not improve their compliance with production quotas. Diamondback Energy, a U.S. shale oil producer, lowered its production forecast for 2025 Monday. It said that a combination between global economic uncertainty and increasing OPEC+ supplies has brought U.S. crude production to a critical point. Scott Bessent, U.S. Treasury secretary, said that President Donald Trump’s agenda of tariffs, tax cuts and deregulation would all work together in order to drive long-term investments into the U.S. Economy. He added that U.S. Financial Markets were "antifragile" so they would weather any short term turbulence. As tariffs threaten the economy, it is likely that on Wednesday, the U.S. Federal Reserve won't change interest rates. Barclays lowered their Brent crude forecast by $4 to $72 a bar for 2025, and their 2026 estimate was set at $62 a bar. They cited "a rocky path ahead for fundamentals", amid escalating tensions in trade and OPEC+’s shift in production strategy. (Reporting and editing by Muralikumar Aantharaman in Houston)
-
UN document reveals that the US is attempting to undermine global efforts for development finance
A document from the United Nations that was seen by revealed that the United States wants to weaken an international deal designed to help developing countries who are struggling with climate change, among other things. The Trump administration is against draft reforms to the global financial system that are intended to assist developing countries. This includes taxation, credit rating and fossil fuel subsidy. The administration wants to remove all mentions of "climate", "gender equality", and "sustainable development". The document, which was previously unknown, sheds light on the Trump administration's efforts to impose an "America First", including opposition to efforts that slow climate change and promote diversification, on institutions at the core of solving global systemic crises. The 4th International Conference on Financing for Development, which takes place every decade, will be held in Seville, Spain in June. Its aim is to influence the strategic direction taken by the development finance institutions around the world. At FFD3, countries agreed to expand tax cooperation so that developing nations could set the rules. As of May last year, more than 140 countries are involved. Tom Mitchell, Executive Director of the International Institute for Environment and Development said, "This conference aims to bring together world leaders and set the rules and priorities for funding development goals in the next decade." The U.N. Secretariat assisted the Mexico, Nepal and Zambia Permanent Representatives to compile the April 11 draft, which is annotated by the 193 countries involved in the discussion. The U.S. delegation said that the FFD4 draft was prescriptive, too long and had a lot of prescriptive language. They also denounced the "ever-widening definition" of sustainable development. Jonathan Shrier, acting U.N. Economic and Social Council Representative for the United States, said: "The international financial organizations have independent mandates and authority. We do not support any attempts to impose U.N.-style directives on their priorities or activities." The United Nations does not have direct control over multilateral development financing institutions. The document was a response to the U.S. Treasury secretary Scott Bessent's pushback against the ongoing changes at both the World Bank and International Monetary Fund for the fight against Climate Change. It also showed that the U.N. reform prescriptions were being watered down. The document reveals that the U.S. is looking to remove the reference to "a package of reforms" in relation to sustainable development. It wants to replace the line that promises to "commit reform to the international financial infrastructure" with the pledge to "recognize and enhance its resilience to current and future crises and challenges." These changes in language can be used to support future actions or inactions in discussions by indicating the level of commitment. In an email, Florencia Nino, spokesperson for the U.N. secretary-general Antonio Guterres said that the Secretary-General acknowledged the need to overcome many challenges before the conference. However, he urged all countries to "be at the table focused on solutions in Sevilla," she added. Both the Treasury Department and State Department declined to comment. The White House has not responded to a comment request. The U.S. position on development is tougher now under Trump. However, the document of negotiations shows that it still supports efforts such as developing countries working closer with the private sector and fostering financial literacy and innovation. CLIMATE CHANGE The global reforms aim to help the poorer nations better cope with climate change-related weather disasters and boost economic growth by using low carbon energy instead of traditional fossil fuels. Donald Trump, the president of the United States, has withdrawn from UN climate agreement in Paris. He also slashed U.S. Foreign Development Aid by more than 80%. This was part of an overhaul government led by Elon Musk. The U.S. has objected to several areas in the FFD4 document, including a call to countries to investigate "global solidarité levies", which could include taxes on high-polluting activities or super-rich people to finance sustainable development. The levies, if included, could be discussed in the U.N. tax negotiations this year. They would also support a taskforce led by France Kenya and Barbados, which aims to create such taxes for smaller groups of countries. Russia, Saudi Arabia, and China are also among the countries that object. The document also shows that the U.S. wants to remove a paragraph that calls for companies to pay taxes to countries where economic activities occur; a paragrah on helping developing nations improve tax transparency and another one on phase-out inefficient fossil fuel subsides. The FFD4 document indicates that the U.S. is looking to remove a paragraph about reforming the rating system. It showed that rating agencies should be more lenient with nations who voluntarily restructure debt in order to invest in environmentally friendly projects. Documents show that the U.S. is also against a commitment by countries to receive "adequate funding and uninterrupted at appropriate terms for social protection, and other essential social expenditures during shocks and crisis," according to the document. The draft agreement is likely to be revised as countries continue to negotiate in May before reaching consensus on the final document by mid-June. The U.S.'s position places pressure on other nations to accept a weaker agreement, as the talks are aimed at adopting a deal through consensus. (Reporting and editing by Dawn Kopecki and Rod Nickel in Washington Additional reporting and editing by David Lawder in London and Daphne Psaledakis and Kate Abnett in London)
-
Sources say LNG Canada is preparing its plant to begin production in June.
Two people who are familiar with the process said that LNG Canada had completed cooling down its Kitimat liquefied gas plant and was preparing to produce the first LNG at the plant in June. To ensure the production of super-cooled gas, cooling an LNG plant is essential. It's also a crucial step before starting operations. LNG Canada will be the first LNG export facility in Canada. It is expected to export 14 million metric tons per year (MTPA). LNG Canada confirmed on Saturday that the Maran Gas Roxana left the plant after delivering a shipment to the plant on April 1. LNG Canada announced on Monday that the LNG was needed for testing equipment and cooling down the facility. This is crucial for our commissioning process and for a safe start up of operations. LNG Canada said that it would continue to flare into May. LNG Canada has said that flaring will take place while the systems are being tested. In a notice, LNG Canada stated that the flare height would vary between 20 meters and 50 metres (65-164 feet) up until May 15. Once the plant is operational, it will provide Canadian energy companies with another outlet to sell their products, and facilitate sales into other countries. As of now, Canada's gas is only available in the U.S. According to U.S. Energy Information Administration data, Canada will export about 8.6 billion cubic foot per day (bcfd), up from 8.0 bcfd a year ago and an average of 7.5 bcfd from 2018 to 2022. LNG Canada is a joint-venture between Shell, Petronas, PetroChina, Mitsubishi Corporation, and Kogas. Reporting by Curtis Williams, Houston; Editing and production by Liz Hampton and Margueritachoy
-
Coterra Energy, a producer of shale gas, reports higher quarterly profits and cuts its spending target
Coterra Energy, a U.S. producer of shale gas, reported an increase in its first-quarter profits on Monday. However, it said that due to the macroeconomic uncertainty they would reduce their annual budget for capital expenditures. The U.S. Energy Sector is preparing for possible fallout due to President Donald Trump's sweeping trade tariffs and a fierce trade war with China - factors that could decrease demand for oil and gas. Diamondback Energy, earlier today, also reduced its annual capital budget as well as production forecasts due to macroeconomic uncertainties affecting the global energy demand. Coterra CEO Tom Jorden said: "As we face macroeconomic uncertainty and oil prices headwinds at this time, we believe that it is prudent to decrease oil-directed activities." The company lowered its capital budget for 2025 to a range between $2.0 billion and $2.3 billion. This is down from the previous forecast which was $2.1 billion to $2.44 billion. The company also plans to operate only seven rigs during the second half, as opposed to its earlier plan of operating ten rigs. Coterra stated that this decision was made to boost free cash flow, and maintain the oil production forecast of the company. After the bell, shares of the company fell by 1.5%. Coterra's results for the first quarter were driven by increased production in Permian basin and Anadarko Basin, but these gains were partly offset by lower oil prices. The total production increased to 746.800 barrels equivalent of oil per day (boepd), up from 686.100 boepd during the first quarter ending March 31. The average oil production was 141,200 barrels a day, and the average realized price of each barrel -- the price paid for every barrel produced -- was $69.73. This is 7% less than the previous year. Houston-based company, Texas, reported that its net income increased to $516 millions, or 68c per share, in the first quarter of this year, from $352 million or 47c per share a year earlier.
-
Two dead in British Supersport crash at Oulton park involving 11 riders
Motor Sport Vision (MSV), the circuit owners, said that Supersport riders Owen Jenner and Shane Richardson died in a crash on Monday involving 11 motorcycles at the start of an event at Oulton Park. Tom Tunstall, 47 was hospitalized with severe abdominal and back injuries. Five other riders with minor injuries were also taken to a medical centre at the circuit of northern England. After the crash, the race was immediately stopped. The British Superbike Championship event was then cancelled. MSV reported that British rider Jenner initially received treatment at the trackside but later died of a severe head injury when taken to a circuit medical center. Richardson, a New Zealander, was treated at both the trackside medical centre and at first at the medical center but died of severe chest injuries before arriving at Royal Stoke University Hospital. MSV and the Motorcycle Circuit Racing Control Board, along with the police and coroner, were conducting an investigation. (Reporting and editing by Pritha Sakar in London. Alan Baldwin reported from London)
-
Environmental groups vow to fight after US TVA chief says coal plants can last longer
Environmental groups have criticized comments made by the Tennessee Valley Authority's head, who said that the utility's coal-fired plants would continue to run after the planned 2035 shutdown. TVA's CEO Don Moul stated last week that TVA was evaluating the executive orders signed last month by President Donald Trump that sought to save coal plant that were likely to close, reduce regulations on coal plants and reduce barriers for coal mining. Moul, after a financial quarterly call last week, said: "We're re-evaluating our end-of life study on our coal fleet. We are also taking a close look at our asset strategies in light of the regulatory environment that is before us." Moul stated that two plants, Shawnee in Kentucky and Gallatin, Tennessee, "have a strong potential to continue operating for the foreseeable, as long as the regulatory allowance is available." Moul said that the two other plants in Tennessee, Kingston and Cumberland are also more restricted by regulation, but more decisions will be made in the future. The four TVA plants are capable of producing 7,000 megawatts. This is enough power to run more than 4,000,000 homes. TVA announced in 2021 that it would shut down the plants by the year 2035 as they had reached the end-of-life cycle. In 2035, then-President Joe Biden also wanted to decarbonize the power grid in order to combat climate change. Utilities scramble to ensure power generation, as U.S. demand for electricity is increasing for the first decade on account of growth in artificial intelligence data centers. Scott Brooks said, on Monday, that TVA's future plans include additional needs for power generation into 2050. "We are exploring all options in order to meet these needs." Bonnie Swinford is an organizer with the Sierra Club and she said that her organization will oppose any extension. Swinford stated that "these expensive and unreliable coal-fired plants do not serve Tennesseans anymore than a screen on a sub." "We deserve affordable, clean energy that will lead to a healthier community." Howard Crystal, legal director for energy justice at the Center for Biological Diversity said he hoped that any extension of these plants would not set a precedent. It sends the wrong message to the world regarding our commitment to address climate change and clean up polluting energy sources. (Reporting and Editing by Margueritachoy)
Official: Petrobras's plans resilient despite plummeting crude prices
A director of Brazil's state-run Petrobras said that the ongoing drop in crude prices was "scary", but the oil projects run by the company are resilient. The comments were made as Brazil's oil industry reacted to U.S. Tariffs imposed on last week.
No Petrobras project is going to be paralyzed. These are long-term investments. This is a joke if you compare it to the (market drop in) 2020. Sylvia dos Anjos told journalists in Rio de Janeiro that it was a time of instability.
Symone Araujo said that the lower price would not reduce interest in Brazil’s planned June auction of offshore oil block.
Araujo said that the break-even price for oil projects in Brazil is lower than crude's current price.
On Wednesday, oil prices fell to their lowest level in four years.
Brazil's Secretary for Oil, Gas and Biofuels Pietro Mendes said that the global tariffs, imposed last week by U.S. president Donald Trump, were damaging to Brazil's energy sector and energy transition. (Reporting and writing by Fabio Téixeira, Isabel Teles; editing by Brad Haynes & Rod Nickel).
(source: Reuters)