Latest News
-
US stocks rise, Treasury yields fall as investors focus on tariff talks and jobs data
Investors watched the U.S. Trade Negotiations and awaited Friday's important employment report. The dollar fell and gold remained unchanged. Ross Mayfield is an investment strategy analyst with Baird, based in Louisville, Kentucky. He said that the big rate move has provided some relief, if not directly for stocks, then at least to those who have been trying to explain why rates are moving up. The equity markets are relieved that rates still seem to have a range of possible increases in this type of environment. U.S.-European The top European negotiator noted that trade talks were progressing. He also pointed out that the U.S. tariffs on metals have doubled since Wednesday. This is not helping negotiations. China's restrictions on vital mineral exports has caused concern among global automakers. They warn that shortages could disrupt global supply chains. Trump, who is expected to meet with Chinese President Xi Jinping soon, called Xi "extremely difficult to deal with" in a post on social media. This suggests that a quick resolution to trade disputes between the two world's largest economies may prove elusive. Investors remain confident, or as confident as possible that the administration will not let things go too far. Mayfield said that the administration would not return to its low point of April 8. I don't think that it is necessary to believe in the existence of God. (Trump always chickens out) trade is wrong. Obviously, it's just a joke. But there are enough signs that suggest if the Trump administration returns to their worst tendencies in terms of trade and tariffs then the market would react accordingly," Mayfield said. ADP, a payroll processor, reported that the U.S. Private Sector added 37,000 new jobs in the last month. This is 69.2% less than what analysts expected to see on Friday from the Labor Department, which will release a more comprehensive report. Survey data also showed that the U.S. service sector contracted last month. Prices paid, an inflation indicator, reached their highest level since November 20,22. The Dow Jones Industrial Average increased 18.57 points or 0.04% to 42,537.23. The S&P 500 gained 12.69 points or 0.21% to 5,982.97, and the Nasdaq Composite rose 84.52 or 0.44% to 19,483.48. After Berlin approved a tax relief package for corporations, European stocks rose and Germany’s benchmark index reached a new record high. This was despite survey data showing that euro zone business activity is stagnating and Germany’s services sector has posted its biggest contraction in over two years. The MSCI index of global stocks rose by 4.25 points or 0.48 percent to 890.15. The pan-European STOXX 600 Index rose by 0.47% while Europe's broad FTSEurofirst 300 Index rose by 9.84 points or 0.45%. Emerging market stocks increased 14.85 points or 1.28% to 1,172.98. MSCI's broadest Asia-Pacific share index outside Japan closed up 1.33% at 618.30. Japan's Nikkei gained 300.64 points or 0.80% to 37,747.45. Dollars fell across the board, as a series of downbeat economic reports suggested a softening in labor market conditions. The services sector also showed signs of contraction. The dollar index (which measures the greenback in relation to a basket of currencies, including the yen, euro and pound sterling) fell by 0.38%, falling to 98.79. At $1.1421, the euro rose 0.45%. The dollar fell 0.82% against the Japanese yen to 142.82. The yields on longer-dated U.S. Treasury bonds fell after the weaker-than-expected data. Investors waited for any signs of progress with tariff negotiations, and also looked forward to the payrolls report. The yield on the benchmark 10-year U.S. notes dropped 9.5 basis points from 4.46% to 4.365% late on Tuesday. The 30-year bond rate fell by 9.5 basis points, from 4.983% to 4.8877% late on Tuesday. The yield on the 2-year note, which is usually in line with expectations of interest rates for the Federal Reserve fell by 8.2 basis points, from 3.957% to 3.875%, late Tuesday. Crude oil prices fell as U.S. inventories were higher than expected, adding to the supply concerns amid tensions in trade and OPEC+ production increases. U.S. crude fell 0.88%, settling at $62.85, while Brent closed at $64.86 a barrel, down by 1.17% for the day. The gold price rose, supported by a soft dollar. Investors waited for employment and trade data. Spot gold increased 0.7% to $3.375.59 per ounce. U.S. Gold Futures increased 0.64% to an ounce of $3,371.50.
-
Rio Tinto reduces cost of Serbia Lithium project
Rio Tinto is revising the cost of its Serbian lithium project that the European Commission identified as one of 13 strategic new critical material projects, Chad Blewitt, managing director of the Jadar lithium mine, said on Wednesday. The project is contested by green groups and many Serbs on environmental grounds, and sparked massive street protests in 2022 which led the government to revoke all Rio Tinto's exploration licences. The Constitutional Court overturned the decision last year and reinstated the licences. "The last time we went out to market and looked at the budget, it was over 2.55 billion euros ($2.91 billion). So we are currently in the midst of updating that capital cost," Blewitt told . "The strategic project status that we received today requires us to meet European Union environmental and human rights standards, and that will be reflected in the final capital cost." He could not be drawn into an estimate of the revised cost or timeline for the project - which was initially forecast to start production in 2027 - saying the Anglo-Australian giant also needed to obtain a field exploitation licence. "Once we... get the licence, we can then go and update the project schedules and have a look at costing. So I don't want to give a definitive date." Rio is the only major mining company to bet heavily on lithium - used in electric vehicle batteries - accelerating its push over the past six months with three new deals: its $6.7 billion buy of U.S.-based Arcadium Lithium and two projects in Chile for more than $1 billion. With the lithium market in the doldrums as a wave of new supply overwhelms weaker-than-expected demand for EV batteries, it will take years to know whether this bet will have paid off, although demand projections for the metal are more positive into the next decade. If implemented, Rio Tinto's Jadar project could meet 90% of Europe's current lithium needs. But protesters in Serbia have threatened to block roads and railways if the project goes ahead. "Whatever happens next will involve multiple stages of scrutiny and public consultation," Blewitt said. "It (the project) positions Serbia at the forefront of the green and digital revolution." ($1 = 0.8748 euros) (Reporting by Ivana Sekularac; Additional reporting by Clara Denina; Editing by Emelia Sithole-Matarise)
-
Sources say that Mexico renewed its approval of the Nippon Steel and US Steel merger on Thursday.
Mexico's antitrust regulator is expected to renew approval of Nippon Steel’s fraught $14.9 billion bid for U.S. Steel by Thursday, according three people with knowledge of the matter. This will remove one of the final remaining obstacles to the tie-up. The people declined to name the source as it was not public. Mexican approval for the acquisition first announced in December of 2023 has expired. It must now be renewed to allow the merger to go ahead. Cofece has not responded to our requests for comment. U.S. Steel, Nippon Steel, and U.S. Steel all declined to comment. Investors are anxiously awaiting President Donald Trump's final approval of a deal to ease any U.S. National Security concerns. Trump has technically until Thursday to sign the bill. Both former President Joe Biden, and Trump, who both sought to win over voters in Pennsylvania before the 2016 presidential election, asserted that U.S. Steel must remain American-owned. Biden blocked this deal in January, citing national security concerns. This led to lawsuits from the companies who claimed that the review of their national security was biased. The Biden White House denied the claim. Steel companies saw an opportunity with the Trump administration. The Trump administration began its tenure on January 20, and in April, opened a 45-day review of national security for the proposed merger. Trump's public remarks, which ranged from welcoming the Japanese company to "invest" in U.S. Steel to float a minority stake, caused confusion. At a rally on Friday in Pennsylvania, Trump applauded the agreement between the two companies, saying that Nippon Steel was a "great" partner for U.S. Steel. He later told reporters that the deal was still subject to his approval and he had not yet decided whether Nippon Steel would be allowed to acquire ownership. Reporting by Alexandra Alper, Diego Ore and Rod Nickel. Editing by Franklin Paul & Rod Nickel.
-
Thyssenkrupp will spin-off 49% of its defence division TKMS as a dividend to shareholders
Thyssenkrupp will spin off 49% its defence division TKMS as part of a listing in the second half of this year. These comments were made during a press conference in Kiel, Germany where Thyssenkrupp unveiled the new branding of the division. TKMS's order book has reached a record of 18 billion euros, or $20.5 billion. This is due to the strong demand for military products. Volkmar Dinstuhl is responsible for M&A at Thyssenkrupp Automotive. He revealed that the shareholders of the conglomerate "will own a 49% share as part of this spin-off". This was the first time that the size of the stake would be disclosed. Thyssenkrupp, in its divestment plan for 2025, has only stated that it will keep a majority stake in TKMS. TKMS manufactures frigates, subs, sensor and mine hunting technology. Thyssenkrupp continues its strategy of selling stakes in main business lines to become a holding firm. The German company sold a 20 percent stake in its steel business last year after listing Thyssenkrupp Nucera, its hydrogen division in 2023. Reporting by Fabian Bimmer & Christoph Steitz. Editing by Jane Merriman
-
Canada's Unifor union calls for retaliatory steel and aluminium tariffs against the US
On Wednesday, Canada's Unifor union called for retaliatory duties on U.S. aluminium and steel after the U.S. government increased the tariffs by 50%. In a press release, Unifor urged the federal government "to act immediately to defend Canada's Manufacturing Sector and counter the escalating Trade Attack." The union has also asked the Canadian government temporarily to restrict the export of metals critical to the U.S. Canada is the biggest seller of metals in the U.S. It exports roughly twice as much aluminium to its southern neighbor as the other top exporters combined. New tariffs Kicked in On Wednesday, Donald Trump's administration asked trading partners to submit their "best offers" so that other import taxes could not be imposed in early July. The Aluminium Association of Canada (which counts Rio Tinto as a member) said that 50% tariffs may force its members into diversification in Europe. Mark Carney, Canada's prime minister, reiterated the statement made by his office on Tuesday. He said that intensive and ongoing negotiations are taking place with the United States. He said that the tariffs on steel and aluminum of 50% were illegal. March is a month of celebration. Canada imposed 25% tariffs c$29.8 billion Carney said that Canada could only go so far in imposing tariffs on imports. tit-for-tat tariffs. We have no idea how the day will unfold, or what week it will be, or even what month it will be. "We are hearing about a lot of people saying that they will pause their projects for the moment, but we don't know how long that can last. This is lost productivity you cannot recover," said Keanin Looomis, President of the Canadian Institute of Steel Construction. Jeremy Flak is the CEO of Flak global Metals, a U.S. steel trader and producer. He said that the tariffs had led to a pause in orders and a negative demand for the metal, besides increasing uncertainty on the commodity markets. "We don't get any orders." Flak stated that the volume has started to decrease since February.
-
Smoke from Canadian wildfires spreads to a third of the US
Forecasters reported that smoke from wildfires burning across three Canadian provinces covered a third or more of the U.S. Wednesday. However, the air quality was not affected except for New England, parts of New York State and the Midwest. According to the National Weather Service Weather Prediction Center, College Park, Maryland, the haze that brought dangerous levels of particulate pollutants to Minnesota the day before, stretched from Dakotas to Ohio Valley to the Northeast, and even as far as Georgia. The haze was particularly thick in New York, New England and the Midwest. Marc Chenard, National Weather Service, said that in many areas the air quality is not affected by the smoke. "But air quality problems are present as far south as New York, Connecticut and other areas where the smoke is thicker in the lower atmospheric layer." Since the beginning of May, scores of wildfires are burning across Canada. As of Tuesday afternoon, there were more than 212 fires burning across Canada, of which half were out-of-control, according to Canadian Interagency Forest Fire Centre. As of Tuesday afternoon, more than 212 active fires were burning in the country. According to the Canadian Interagency Forest Fire Centre, so far 2 million hectares (5.9 million acres) has burned. The majority of fires occurred in west-central Manitoba, Saskatchewan, and Alberta. Yang Liu is a professor at Emory University, Atlanta. She teaches environmental health. Liu stated that "it will affect everyone, at some level. All walks of life." "It's bad." He said that the smoke contains small, toxic particles smaller than 1/40th the width of an average human hair. These particles can enter the lungs or even dissolve in the bloodstream. Williamstown, Massachusetts was one of the worst places for air pollution in the U.S. Northeast Wednesday morning. It is located near the borders of Vermont and New York. According to IQAir's website, which monitors air pollution around the globe, it registered a reading of 228. This is considered "very unhealthy". According to the website, an air quality rating below 50 is "good," readings between 100-300 are "unhealthy" or "very unhealthy," and anything higher is "hazardous." Other parts of the U.S. Northeast had much lower ratings, with New York City registering a 56 on Wednesday and Washington registering a 55. On Wednesday morning, air quality in certain parts of the Midwest also improved. Ely, near Minnesota’s border with Manitoba registered a “moderate” reading of 65 on Wednesday, down from a previous reading of 336. Minneapolis, the third-worst air quality city in the country on Tuesday with a reading of 168, now registers at 96.
-
The union warns that more than 500 jobs are at risk as Stellantis switches oil suppliers in Italy
A trade union warned on Wednesday that more than 500 jobs were at risk after Stellantis, an Italian automaker, switched from Malaysia's Petronas brand to France's Total. Stellantis did not respond to a request for comment immediately. Petronas is the owner of the Selenia motor oil brand, an Italian supplier that was previously a part of Fiat and sold products under the name "Olio Fiat". Stellantis, a new company created in 2021 by the merger of Fiat-Chrysler and France's PSA (maker of Peugeot and Citroen vehicles), was formed from the merger between Fiat-Chrysler and France's PSA. Also included in the group are Opel and Jeep. The Uilm union announced in a press release that Selenia had lost its "historical" contract of supply with Stellantis, after 112 production years. The result of a competitive bid led to the change. Uilm said that Petronas had announced the decision in a meeting held with its employees. He added that this affected the job security of 450 Fiat workers in Turin, Fiat's home town, and 70 others in Naples in southern Italy. The union has pledged that it will use "all tools available" to protect Petronas employees and other auto suppliers, who are "under severe stress" as a result of Stellantis' decision. The FIM-CISL union reported in January that Stellantis, Italy's only major automaker and the country's sole manufacturer, had a production level of around 475,000 cars in 2016, the lowest since 1956. Reporting by Giulio Pieovaccari, Alvise Armellini and Keith Weir.
-
India's Vedanta says Trump's tariffs damaging, seeks import curbs
Vedanta, an Indian conglomerate that converts metals into oil, said Wednesday that President Donald Trump’s decision to double the aluminium tariffs from 25% to 50% is a threat to Indian industry which already struggles with soaring imports. The global markets have been shaken by the latest round of Trump's tariffs on steel and aluminium, which went into effect on Wednesday. Vedanta's spokesperson said that the 50% tariff announced by Trump was damaging to India's aluminium industry. The industry is already being pressured from a surge in imports, which threatens to create excess and put domestic market access at risk. The Indian government was urged by the miner, the largest producer of aluminium in the country, to impose tariffs on imports. The spokesperson stated that "..duty guardrails should also be in place for the aluminum industry, which has invested more than 20 billion dollars to date in setting up the current domestic primary aluminum capacity." According to data from the government, India's total aluminum exports dropped 19% in fiscal year ending March 2025 to 2,24 million metric tonnes. Separately the country's federal minister of steel said earlier this year that Trump's tariffs on steel would have a minimal impact on the local industry as India, which is the second largest crude steel producer in the world, does not export significant quantities to the U.S. India implemented a temporary 12% tariff on certain steel imports in April. This is known locally as a "safeguard duty" and was imposed to stop a rush of cheap shipments, primarily from China.
Financial Times - 6th June
These are the most popular stories from the Financial Times. These stories have not been verified and we cannot vouch their accuracy.
Headlines
Defence Review: UK Must Spend 68 Billion Pounds to Modernise Military
EU limits Chinese medical devices in a new trade dispute
Saudi Aramco sells bonds worth $5 billion to combat lower oil prices
Merck has held talks with Swiss biotech MoonLake to purchase it for more than $3bn
Uber re-appoints Khosrowshahi as chief operating officer, easing his grip
View the full article
A long-awaited review of Britain's strategic defence suggests that the country will have to spend 68 billion pounds (92.02 billion dollars) to prepare for modern warfare.
The EU has restricted imports of Chinese medical equipment in response to Beijing's alleged discrimination in public contract bids against foreign manufacturers.
Saudi Aramco is the largest oil company in the world. On Monday, it announced that it raised $5 billion through a bond issue. The company said it was preparing for a possible drop in oil prices, and for future borrowing.
Merck held discussions over the acquisition of Swiss biotechnology company MoonLake Immunotherapeutics for more than $3 billion.
Uber's chief executive Dara Kosrowshahi has shaken up the senior leadership. (Compiled by Bengaluru Newsroom)
(source: Reuters)