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Petrobras Completes Veterinary Center Required for Offshore License
Petrobras has completed work on a veterinary center in the Amazon region that is required for it to obtain an environmental permit for an offshore drilling project, the company said on Saturday.The animal care center in the town of Oiapoque, Amapa state, is designed to assist animals in the event of an oil spill.It was one of Brazilian environmental agency Ibama's main demands in response to Petrobras' proposal to drill offshore in the environmentally sensitive Foz do Amazonas region.Amapa has granted the veterinary center an operating license but it still requires Ibama's clearance. Petrobras said in a statement it informed the agency the center will be available for inspection starting Monday.The center is designed to care for birds, marine mammals, turtles, dolphins and manatees, said Petrobras, which aims to conduct exploratory drilling in a block 540 kilometers (325 miles) off Amapa's coast.Foz do Amazonas in the so-called Equatorial Margin is Brazil's most promising oil frontier. It shares geology with nearby Guyana, where Exxon Mobil is developing huge fields.Ibama blocked Petrobras from drilling there in 2023, but the company filed a new request, which the agency is assessing. There is no deadline for a final answer.(Reuters - Reporting by Marta Nogueira; Writing by Gabriel Araujo; Editing by Cynthia Osterman)
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Australian heavy rare Earths miners protest China export controls
Australian listed miners of heavy-rare earths rallied Monday, despite major selloffs on other markets. They were betting that Western governments would redouble their efforts to create a separate supply after China, the top producer, imposed export controls. Shares in Australia's heavy rare earths developer Northern Minerals, which has a project in Brazil and is based in Australia, surged by 9.5%. China placed export restrictions for rare earth elements as part of its response to U.S. president Donald Trump's tariffs on Friday, which squeezed supply of minerals to the West used to manufacture weapons, electronic devices and a variety of consumer goods. The group of rare earths consists of 17 elements. Heavy rare earths have higher atomic masses, such as dysprosium, yttrium and others. These are less abundant but more valuable. The news from China highlighted Lynas’s strategic capabilities, which are underpriced on the market at present," said Barrenjoey Analyst Dan Morgan. China produces 90% of rare earths in the world, which is a grouping of 17 elements that are used by the electronics, defence, and electric vehicle industries. Analysts said that the export restrictions affect all countries and not just those in the United States. They include magnets, as well as other products, including finished goods, which will be hard to replace. Meteoric Resources announced in a Monday filing that it intended to produce six elements subject to export control at its Caldeira Project, which is expected to be operational during the second half 2027. Lynas didn't immediately respond to an inquiry for comment. Separately Australia's Premier Anthony Albanese who faces an election on May 3, raised the possibility of creating national stockpiles for critical minerals which would likely include rare earths. Albanese stated last week that a Labor Government would establish a Critical Minerals Strategic Reserve. I will be able to elaborate on this. Analysts said that they were waiting for more details, as typically, consumers would stockpile inventory in the event of a supply chain disruption, and not producers. (Reporting and editing by Jamie Freed; Additional reporting in Sydney by Kirsty Wantham; Reporting by Melanie Burton)
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Financial Times - April 7
These are the most popular stories from the Financial Times. These stories have not been verified and we cannot vouch their accuracy. Headlines - UK auto industry gets tariff relief by lowering EV targets - Britain will relax rules for hedge funds and smaller private equity firms UK will scrap or merge even more quangos as part of anti-regulation drive - US closes on crucial minerals deal with DR Congo View the full article After President Donald Trump's 25% tariff on global auto sector exports to the U.S., the British government has lowered its targets for electric cars, and lowered punitive penalties, to support the domestic automotive industry. The British Government plans to introduce a lighter regulatory system for smaller groups in order to encourage more investment. UK Cabinet Office Minister Pat McFadden wrote to Whitehall departments to demand they justify the existence and purpose of each quango that is currently being used to outsource decisions. The aim is to close unnecessary agencies and bring responsibility for making decisions back to Whitehall. The United States is close to a deal that will see American companies gain more control over critical mineral assets, in exchange for greater support for the struggling Kinshasa Government. (Compiled Bengaluru Newsroom)
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China metals fall after trade war retaliation, copper hits over 3-month low
The price of base metals in China plunged sharply on the first day of this week as fears about a possible recession grew due to an escalating trade war. Copper prices fell to a three-month low. As of 0138 GMT on the Shanghai Futures Exchange, the most traded copper contract dropped 7%, to 73640 yuan a metric ton, its lowest level since January 3, over three months ago. The London Metal Exchange's benchmark copper for three months fell 1.9% to $8614.5 per metric tonne. China, the world's largest consumer of metals, retaliated on Friday by imposing additional tariffs of 34% on all U.S. products from April 10 after U.S. President Donald Trump imposed 34% on most Chinese items as part his sweeping tariff program. We expected a steep drop in China commodity prices today, as China's markets were closed on Friday. This coincided with a significant decline in LME base-metals. Base metals traders said that some even reached their lowest limits immediately after trading started. A second trader stated, "The retaliatory trade tariffs make us worried about a trade war that will hinder economic growth worldwide." SHFE aluminium fell 4.5% to 19.515 yuan per ton. Zinc fell 4.2% to 22195 yuan. Lead fell 2.4% at 16,810, nickel fell 6.7% to 120370 yuan. Tin fell 6.5% at 273,680. Other metals include LME aluminium, which fell by 0.3%, to $2.372.5 per ton. Lead also dropped 0.3%, to $1.901, while zinc slid by 0.8%, to $2.639; tin, down 2.2%, at $34,615, and nickel, down 0.1%, at $14.775 per ton.
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Trump compares tariffs with'medicine' after Asian markets erupt
U.S. president Donald Trump said that foreign governments will have to pay a "lot of money" in order to lift the sweeping tariffs he called "medicine." This has caused further turmoil on global financial markets. Asian stocks suffered steep losses on Monday morning. U.S. futures markets opened with sharply lower prices as investors expressed concerns about Trump's tariffs, which they feared could lead to higher costs, a weaker economy, a drop in confidence, and even triggering a global economic recession. Trump told reporters on Air Force One that he wasn't concerned about the losses of trillions of dollars from stock markets all over the world. "I don’t want anything to fall. "But sometimes you need to take medicine to cure something," he said, as he returned after a golf weekend in Florida. Trump claimed he spoke to leaders in Europe and Asia on the weekend. They hope to convince Trump to lower tariffs by up to 50%, which are due to come into effect this week. They are at the table. "They want to talk, but they won't talk until we pay them a lot of cash on an annual basis," Trump said. Trump's announcement of tariffs last week shocked economies around the globe, prompting retaliatory measures from China. Fears were raised about a global recession and trade war. Investors and politicians have been trying to figure out whether Trump's tariffs will be permanent or just a tactic used to get concessions from countries. Trump's economic advisors tried to present the tariffs on Sunday morning talk shows as a clever repositioning by the U.S. within the global trading order. Treasury Secretary Scott Bessent stated that more than fifty nations have begun negotiations with the U.S. following last Wednesday's announcement. Bessent told NBC News' Meet the Press that "he's created maximum lever for himself". Howard Lutnick, Commerce Secretary at CBS News, said that the tariffs will remain in effect "for days and even weeks." Kevin Hassett, White House economist, sought to calm concerns that tariffs were part a strategy designed to pressure the U.S. Federal Reserve into lowering interest rates. He said there would not be any "political coercion". JPMorgan's economists estimate that tariffs will cause the U.S. Gross Domestic Product to decline by 0.3% in the full year, compared to an earlier estimate of growth of 1.3%. They also predict the unemployment rate will rise from its current 4.2%, to 5.3%. Bill Ackman is a billionaire fund manager who has endorsed Trump for president. He said that Trump had lost the confidence of many business leaders, and warned him of a "economic nuclear Winter" if he didn't take pause. Tariff negotiations began on Saturday when U.S. Customs agents started collecting Trump's 10% unilateral tariff on all imports. The "reciprocal tariff" rates will increase to 11% to 50 % on certain countries on Wednesday, at 12:01 am EDT (4:01 am GMT). Several governments have indicated a willingness for engagement with the U.S. in order to avoid duties. Taiwan's president Lai Ching Te on Sunday offered no tariffs as a basis for discussions with the U.S. He pledged to remove trade barriers, and said Taiwanese firms would increase their U.S. investment. Benjamin Netanyahu, the Israeli Prime Minister, said that he will seek to have a reprieve on a 17% tax on Israel's products during his meeting with Trump scheduled for Monday. A government official in India said that the country did not intend to retaliate for a 26% tax and that talks with the U.S. were underway over a potential deal. Giorgia Melons, a Trump ally in Italy, pledged to protect businesses from the planned 20% tariffs on EU goods. Italian wine producers and U.S. Importers said that business has already slowed down and they fear further damage.
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The oil price plunges amid fears of a global trade war triggering recession
The oil prices fell more than 3% Monday, extending the losses of last week, as trade tensions between China and the United States escalated, stoking fears that a recession would lower demand for crude. Brent futures fell $2.28 or 3.5% to $63.30 a bar at 0049 GMT. U.S. West Texas Intermediate Crude futures dropped $2.20 or 3.6% to $59.79. Both benchmarks reached their lowest levels since April 2021 at the session low. Oil fell 7% on the Friday after China increased tariffs on U.S. products, intensifying a trade conflict that has caused investors to price in an increased probability of recession. Brent has lost 10.9% over the last week while WTI is down 10.6%. Satoru Yushida is a commodity analyst at Rakuten Securities. He said that the primary reason for the decline was the fear of tariffs affecting the global economy. He added that retaliatory duties from other countries will also be a factor to watch. Yoshida said that WTI might fall to $50 or even $55 if the stock market continues to decline. China announced on Friday that it would add additional tariffs of 34% to American goods in response to U.S. president Donald Trump's tariffs. This confirms investor fears of a full-blown trade war and the risk of recession for the global economy. Oil prices could be affected by Trump's new tariffs on imports of refined products, oil and gas. The policies could also stoke inflation and slow the economic growth. Jerome Powell, Federal Reserve chair, said that Trump's tariffs were "larger than anticipated" and the economic fallout will likely be higher inflation and slower development. Over the weekend, OPEC+ ministers emphasized the need to fully comply with oil production targets and asked overproducers submit plans to compensate for pumping excessive amounts of oil by April 15. (Reporting and editing by Nick Zieminski, Sonali Paul, and Yuka Obayashi)
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Nikkei reports that Toyota will increase the number of EV models from 15 to 1 million and target production by 2027.
Toyota plans to develop 15 electric car models on its own before 2027, and will aim to produce 1 million vehicles a year at that time, according the Nikkei paper on Sunday. Toyota refused to comment on the matter, stating that the information had not been announced by the company. Nikkei reported that Toyota produces only five EVs, all of which are developed by itself, and are manufactured in Japan and China. The Nikkei said that expanding production to the United States and Thailand can reduce delivery times and help mitigate tariff and exchange rate risks. Business daily Nikkei reported that among the 15 EV models, some are from Lexus, its luxury brand. Nikkei said that Toyota expects to make about 800,000 vehicles in 2026. This is a drop of nearly 50% compared to its original plan. Toyota previously stated that it planned to sell 1.5 millions EVs annually by 2026, and 3.5 Million by 2030. The numbers were referred to as benchmarks rather than targets. It sold nearly 140,000 EVs worldwide in 2024. This is an increase of about a third compared to the previous year. These EVs accounted for less that 2% of the company's total global sales, which exceeded 10 million.
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Oil prices continue to fall amid fears of a global trade war slowing the economy
On Monday, oil prices dropped more than 3%, continuing losses from the week before, amid growing fears that a global economic slowdown and weakening of oil demand could be caused by a trade war, after China's retaliation to U.S. president Donald Trump's tariffs. Brent futures fell $2.1, or 3.2 %, to $63.48 a bar at 2227 GMT. U.S. West Texas Intermediate Crude futures dropped $2.14 or 3.5 % to $59.85. Both benchmarks fell 7% on the Friday, reaching their lowest levels in more than three years. This was due to China increasing tariffs on U.S. products. The trade war has accelerated and investors have priced in a greater probability of recession. China responded to Trump's new tariffs by announcing on Friday that it would add an additional 34% levies on American goods. This confirms investor fears of a full-blown trade war and the risk of recession in the global economy. JPMorgan, the investment bank, now predicts that there will be a global recession by the end of this year. This is up from its previous estimate of 40%. (Reporting and editing by Nick Zieminski.)
Toyota to publish rise in Q1 profit on hybrid need, but momentum might be slowing
Need for hybrids is likely to provide another quarter of doubledigit growth for Japan's. Toyota Motor when it reports revenues on Thursday,. although it is expected to show signs of slowing after a run of. record profits.
Analysts will be paying close attention to how much momentum. the world's top-selling automaker has lost from previous. quarters, offered difficulties like a difficult market in China and. fallout from a certification scandal.
Sales information already provide a hint of the prospective downturn. Toyota's global sales decreased 2% in April-June versus a year. previously as robust U.S. and European demand wasn't enough to make. up for decreases in your home and in China.
For the April-June quarter, Toyota is anticipated to provide a. 20% increase in operating earnings to 1.3 trillion yen ($ 8.50 billion). the typical forecast of six experts reveals, based on LSEG.
That would be the business's weakest earnings growth because. July-September 2022. The car manufacturer has already forecast a 20%. decline in full-year earnings, pointing out looming investment in both. its strategy and providers.
Toyota has actually taken advantage of a slowdown in international need for. electrical cars, permitting it to offer more hybrids, which. normally command higher margins than regular gas automobiles.
The company's inventories in the U.S. are likewise tight,. minimizing the threat of reward spending to lure customers to. buy automobiles, said James Hong, head of mobility research at. Macquarie.
You generally have among the largest market gamers with. the most affordable level of stock, he stated, including that, together. with the company's growing hybrid offering, was most likely to assist. keep revenues at a high level.
Hybrids made up 39% of Toyota's worldwide sales in the first. six months of the year, or 1.9 million cars, including the. high-end Lexus brand, according to company information.
The technique to increase hybrid sales in the U.S. over the. short term rather of battery-electric vehicles may also. shield it from potential changes in U.S. federal government policy on. EVs.
Former President Donald Trump, the Republican candidate in. the U.S. governmental election, has actually stated he would end the. government EV required if he wins.
Shares of Toyota are up 13% so far this year, however have not. carried out well over the past months, boiling down 25% from a peak. in late March.
In dollar terms, they are up 6%, compared to a 10% decline. in Tesla over the same duration.
Toyota's strong financial efficiency and gains in its share. cost belie pressure that Chairman Akio Toyoda has actually dealt with over. accreditation irregularities at Toyota Group business and the. automaker itself.
In an interview published on Monday, the grandson of the. company's founder stated he might not be re-elected as a board. director if investor assistance for him, which slid to 72% this. year from 85% in 2023, continues to fall at the pace it did.
While strong in hybrids, Toyota still tracks behind competitors. such as Tesla and European and Chinese automakers when it comes. to EVs, which represented only 1.5% of its global sales in the. first half of the year.
Toyota's China sales were down 11% to 785,000 automobiles over. the very first six months of 2024, compared to a 14% gain to 1.2. million vehicles in the U.S over that period.
(source: Reuters)