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Congo lifts ex-President Kabila’s immunity after accusing him war crimes
The Democratic Republic of Congo is trying to strip Joseph Kabila of his immunity, so that he can be tried on charges of supporting M23 insurgents in the east of the country where the government hopes to draft a deal for peace this week. Kabila has been away from the country, mainly in South Africa, since late 2023. He announced last month that he would be returning to find a resolution to the crisis in eastern Congo, where M23 rebels backed by Rwanda have taken over large areas of the country this year. Kabila's return to Congo, where he has denied supporting rebels, may complicate an effort by the United States to put an end to the conflict in eastern Congo. This region contains minerals of great value that the administration of U.S. president Donald Trump is eager to mine. Justice Minister Constant Mutamba informed reporters in Kinshasa, on Wednesday evening, that the Congolese Army's Attorney General had asked the Congo Senate to revoke Kabila's immunity from prosecution as a Senator for life. Mutamba stated that the Congo had amassed "clear evidence" of "war crimes and crimes against humanity, as well as massacres of civilians and military personnel who were peaceful," adding that Kabila must return to Congo in order to be tried or face being tried absentee. A signed agreement in Washington, DC on April 25, states that Congo and Rwanda will come up with a peace draft by May 2, and will refrain from providing any military support to armed group. On Thursday, it was not clear if anything would be signed by Friday or what the conditions would be. Kabila took power in 2001, after the assassination of his father. He refused to step down after his last term officially ended in 2016. This led to violent protests before he agreed to leave the office following an electoral in 2018. The Interior Ministry suspended Kabila's political party last month. Meanwhile, the Justice Ministry announced that it would seize Kabila and his party leaders' assets. Ferdinand Kambere said that the attempt to lift Kabila’s immunity was a sign of the government’s fear for Kabila’s return. He blamed Felix Tshisekedi - a Kabila opponent - for the crisis in eastern Congo. (Reporting Sonia Rolley, Ange Kasongo and Jessica Donati Writing by Robbie Corey Boulet and Philippe Fletcher)
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BOJ adds to the growth gloom by causing stocks to stall and yen to slide
The world stock market was in a haze on Thursday following a contraction of the U.S. Economy. However, Wall Street pointed higher and the dollar rose as the Bank of Japan's growth forecast was cut due to U.S. tariffs on trade. This pushed the yen down. May Day was a public holiday in many parts of the world including Europe. This meant that trading was light but it wasn't boring. Wall Street made a sprint on Wednesday despite the U.S. Q1 GDP decline. Microsoft and Meta's strong earnings after-the bell helped to dampen some recent negativity surrounding "Magnificent Seven". The Nikkei, a tech-heavy index in Japan, followed suit with a surge in Asia. However, London's FTSE stalled out in Europe and this wasn't sufficient to keep MSCI 47-country global stock index from the red. U.S. futures pointed higher for later when trading resumes in the U.S. The price of gold, which has been soaring as investors fled for safety this year, fell to its lowest point in two weeks, as traders took advantage of the glimmers in the global war on trade. John Hardy, a Saxo Bank analyst, said that the move went to the core of recent questions regarding whether President Donald Trump’s radical overhaul of the post-World War Two order in the United States would bring an end to so-called “U.S. exceptionalism” on the markets. Hardy stated that "the recent narrative is the consensus of selling the dollar" and that it was a result of Meta and Microsoft's five-star performance yesterday. The Bank of Japan's decision to cut its forecasts on Thursday and the subsequent drop in the yen has added to this. He said that the gold price was down today as well, and all of these things were linked. The majority of Europe's bonds markets were closed on the holidays. The UK 10-year Gilt Yields, a proxy of borrowing costs, ticked down and the U.S. Treasuries yields were back at 4.15%. Analysts now price in four U.S. rate cuts for the rest of the year. The U.S. ISM Manufacturing data is due to be released later. The trade war was expected to have a negative impact on the data. Oil prices on the commodities market have stabilized at $61 per barrel, after plummeting on Wednesday due to the U.S. drop in GDP and indications that Saudi Arabia, which is the world's largest crude exporter, plans to increase production this year. Hardy, from Saxo Bank, said: "It'll be interesting to watch what happens if the drumbeat of bad data continues." (Reporting and editing by Mark Heinrich; Marc Jones)
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Vice-Prime Minister: The Spanish government should take over grid operators
Yolanda Diz, Spain's Vice-Prime Minister, said that the state should have 100% control over the Spanish grid operator. This was after Spain suffered its worst blackout. Red Electrica (REE) is owned by the government at 20% and private owners own the remaining. "REE" is a private company. Diaz told TVE in an interview that this situation was unacceptable. Diaz is also the Labour Minister and a member Sumar, a far-left party that is a junior partner of Spain's coalition Government. She said that the Socialist Party as the major partner did not agree with the idea of the state taking full control. The Prime Minister Pedro Sanchez announced that the government was investigating the power outage which caused trains to stop, airports to close and people trapped in lifts across the Iberian Peninsula on Monday. Two sources, who spoke on the condition of anonymity, said that investigators from Spain’s cybersecurity agency, INCIBE and the CNI intelligence services will be seeking information from the grid operators and private energy companies as part of the investigation. This includes visiting their offices. (Reporting and editing by Barbara Lewis; reporting by Graham Keeley)
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Medvedev claims that Trump forced Kyiv into paying for US aid because of the Ukraine mineral deal.
Dmitry Medvedev, a senior Russian security official, said that President Donald Trump forced Kyiv on Thursday to pay for any future U.S. Military aid. The agreement, which was signed on Wednesday in Washington, gives the United States access to new Ukrainian mineral deals and funds investment in Ukraine's rebuilding. According to The Kyiv Post citing diplomatic sources the Trump administration informed Congress of its intent to approve the export of defense-related products into Ukraine via direct commercial sales exceeding $50 million, marking the first such step since Trump returned to the White House. Could not confirm immediately. "Trump has broken Kyiv's regime to the extent that they will be forced to pay for U.S. assistance with mineral resources," Medvedev wrote on Telegram, a former Russian President who is now the deputy chairman of Russia’s Security Council. He said: "Now (Ukrainians), they will have to buy military supplies using the wealth of a country that is disappearing." Medvedev was the president of Russia from 2008 to 2012 and once portrayed himself as a liberal pro Western moderniser. However, he has become one of the most vocal anti-Western hawks ever since Russia's invasion of Ukraine in 2022. The agreement on minerals was reached as the U.S. grew increasingly frustrated with the refusal of Moscow and Kyiv, to sit down for peace talks. Moscow is prepared for direct talks and is open to an ongoing peace settlement. However, the complexity of the issues involved means that this process cannot be rushed. Kyiv has said it supports an immediate, unconditional ceasefire lasting at least 30days. Vladimir Putin, the Russian president, has stated that he is in agreement with this principle but that many questions need to be clarified. Putin announced a 3-day ceasefire from May 8-10 when Russia will celebrate the 80th anniversary since its victory over Nazi Germany during World War Two. The Kremlin said that Russia had enormous mineral wealth and hinted at potential deals with the U.S. It has not yet commented on the Ukrainian mineral deal. Sergei Markov said that the deal reached between Washington and Kyiv will make it more difficult for Russia to achieve peace in Ukraine by means of talks, because Trump has set up a system to "justify' new spending on the conflict. "The U.S. has begun to view itself as a kind of co-ownership of Ukraine." Markov predicted that the U.S. would take a pro-Ukrainian stance. Reporting by Andrew Osborn, Writing by Mark Trevelyan; Editing By Mark Trevelyan
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Saudi Arabia's GDP expanded 2.7% in the first quarter
Saudi Arabia's economy expanded in the first quarter thanks to activity in non-oil sectors as the country continues its diversification away from hydrocarbons. Flash estimates released by the government's statistics authority on Thursday showed that the kingdom's real Gross Domestic Product (GDP), as measured in dollars, increased 2.7% from the previous year. The government agency updated and expanded their data collection, and stated that its nominal and real GDP series had been revised accordingly. When we met with people, they always wanted more information, more statistics and more data. The local demand for more data is what drives this, said Fahad Al Dossari. The authority stated that as part of its revision it has increased the weighting for the non-oil sectors to better align themselves with international standards and data. The growth in non-oil activities was 4.2%, and the government's activities were up 3.2%. The statement revealed that oil activities had decreased by 1.4%. Reporting by Hadeel al Sayegh in Dubai, Manya Saini and Pesha Magid in Riyadh. Editing by Alex Richardson and William Maclean
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Alcoa's Q2 order book is strong despite tariffs and assessing Spain power risk
Alcoa, the aluminium producer, said that its order book was robust for the second quarter and it had not seen any drop in orders due to U.S. Tariffs. It also noted that Spain's power failure this week posed a risk to its business in Spain. Since his election, U.S. president Donald Trump has imposed an aluminum import tariff of 25% "without any exceptions or exclusions", in a bid for the U.S. to increase its production. Our first quarter order books were strong. The second quarter order books remain strong. We have not seen a drop in orders due to tariffs," CEO William Oplinger told a mining conference in Melbourne. When we talk to our customers about the future, they are uncertain. We don't really have a good idea of what the future holds. Alcoa, in its earnings call for the first quarter of last year, said that the tariffs imposed by the United States on aluminum imports from Canada will cost the company approximately $90 million during the second quarter. Oplinger stated that Alcoa supports Trump's vision for a competitive manufacturing climate in the U.S., and that the best way to accomplish this would be by ensuring Canadian aluminium reaches the United States. He added that the U.S. lacks bauxite, which is a raw material used to make aluminium and about 4 million tonnes of it each year. Alcoa has no immediate plans to build smelters within the U.S., which can take up to 5-7 years. He said it would cost $35 billion to build seven new U.S. aluminum smelters. Alcoa is the biggest aluminium producer in America, with a market worth of $6.5 billion. The primary aluminum industry is not going to be able to meet the demand for manufacturing in the near future. Oplinger stated that the power outage in Spain and Portugal, which is still not fully understood, has increased the risk for Alcoa’s San Ciprian aluminum complex. He said, "At the moment, we do not know what happened with the energy in Spain. I think we should take a few days to assess the risks of further power losses." "It is difficult to run an electro-intensive company in a location that cannot guarantee the power will be on if the grid does not understand what happened." Alcoa has begun a review of the damage to the plant. Oplinger stated that the facility's plant was restarting its smelter, which is 8-10% completed. The plant's production was curtailed due to high electricity prices in 2021. It is currently in the process of restarting with a full ramp up expected by October. (Reporting from Melanie Burton in Melbourne, and Renju José in Sydney; editing by Edwina Gibbs).
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Rio Tinto reports that 19.35% of its shareholders voted in favor of dual listing review
Rio Tinto announced on Thursday that 19,35% of shareholders voted in favor of a review of their dual-listed company structure. According to UK regulations, the company would have been required to consult with more shareholders if a vote was cast of more than 20%. Palliser Capital, an activist investor, has been campaigning for Rio Tinto to merge the London-listed and Sydney-listed companies into one holding company in Australia. Palliser claims that removing the current structure would unlock value of $28 billion for Rio Tinto London shareholders. The AGM in London on April 3 was a vote by British shareholders of the world's biggest iron ore mining company. About 77% of Rio Tinto investors are listed in London, but Australian-listed shares trade at a 25% premium, largely due to the tax benefits available to Australian shareholders. Rio Tinto’s board unanimously recommended that the company vote against the resolution. They cited tax concerns and said a unified list is not necessary to give it strategic flexibility. Palliser’s motion received the support of influential proxy advisory firms Institutional Shareholder Services and Glass Lewis, as well as more than 100 shareholders, including Norway’s sovereign wealth fund Norges Bank Investment Management. BHP, the rival company, ended a dual-listed structure similar to that of BHP in 2022. It now has an Australian primary listing six years after activist Elliott started its campaign for one listing.
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Wall Street Journal, May 1,
These are the most popular stories from the Wall Street Journal. These stories have not been verified and we cannot vouch their accuracy. Tesla board members reached out to executive search firms about a week ago in order to find a successor to CEO Elon Musk. A federal judge has ruled that Apple violated willfully an antitrust injunction regarding App Store restrictions. The case was referred to federal prosecutors who are now conducting a criminal contempt investigation. The Trump Administration is allocating $500,000,000 to a project that will be led by two scientists who were recently promoted to high-ranking positions at the National Institutes of Health. This move away from Covid-19 next-generation vaccines. Sundar Pichai, Google CEO, urged U.S. district judge Amit Mehta on Wednesday to reject "extraordinary proposals" from the Justice Department, such as forcing the sale Chrome and sharing search data between rivals to curb Google's dominance in online search. The Trump administration has finalized an agreement with Ukraine that grants the U.S. access its mineral resources. It resolved last-minute disagreements to achieve an agreement aimed to offset U.S. defense support for Ukraine against Russia. House Republicans are considering plans to increase restrictions on tax deductions that apply to the highest-paid worker's compensation of companies. The proposals could be included in a tax and spending bill worth billions.
IMF lowers its 2025 Middle East and North Africa growth forecast by 2.6% due to global risks
The International Monetary Fund announced on Thursday that it expects the Middle East and North Africa economy to grow only 2.6% by 2025, as uncertainty stemming a trade war in the world and lower oil prices are weighing on this region.
The new projection was a significant downgrade from the October projection, which predicted 4% growth. This comes at a time when the region is grappling with geopolitical tensions and a softer external market.
In an interview, Jihad Azour said, "Uncertainty can impact real economy, consumption and investment... All these elements have led to a softerening of projections."
The direct impact of tariffs is limited due to the limited integration of trade between the U.S. and the region.
In its latest Regional Economic Outlook released in Dubai, the IMF pointed out a gradual improvement in oil production as well as protracted regional conflict and delayed structural reforms in Egypt.
The report stated that "the ongoing conflicts in MENA have left profound economic scars and deep humanitarian costs," adding that it has had a severe impact on the region's oil-importing economies.
In 2025, the MENA non oil importers will see a real GDP increase of 3.4%, compared to an earlier forecast that predicted 3.6%.
DIVERGING OUTLOOKS
The growth of non-Gulf Cooperation Council (non-GCC) oil exporters will slow down by one percentage point - a sharply downward revision – before staging a modest rebound in 2026.
The GCC economy is projected to grow, but at a slower rate than in October. This is due to the extended OPEC+ production cuts that will continue through April. There will also be a gradual phase out by 2026 and a weaker non-oil sector.
Azour stated that "with all these changes and obstacles, it is important to also seek new trade partners," referring to GCC. The GCC comprises Bahrain, Kuwait Oman, Qatar Saudi Arabia, and United Arab Emirates.
IMF predicts GCC GDP growth of 3.2% for 2025, down from the 4.2% it predicted in October.
GCC countries are stepping up their efforts to diversify economies. Initiatives like Saudi Arabia’s Vision 2030, and the UAE’s push in tourism, logistics, and manufacturing aim to reduce reliance on hydrocarbons.
Azour stated that "trade diversification, structural reforms accelerated, and productivity improvement are all elements which will help non-oil sectors to maintain a high level of growth." (Reporting by Manya Saini in Dubai Editing by Shri Navaratnam)
(source: Reuters)