2025-04-03 06:47
MUMBAI, April 3 (Reuters) - The Indian rupee on Thursday held up reasonably well to the dip in most Asian currencies and equities, triggered by U.S. President Donald Trump's sweeping reciprocal tariffs. The rupee was down 0.16% to the U.S. dollar at 85.6375. Sign up here. On Wednesday, Trump imposed a 10% baseline tariff on all imports from April 5 and higher duties on certain countries including 34% on China and 20% on the European Union. U.S. equity futures plunged and Treasury yields rose on worries that the tariffs will lead to higher inflation and impede growth in the United States. The rupee "is holding up remarkably well given the magnitude of the negative surprise on the U.S. tariff front," said a currency trader at a Mumbai-based bank. "Most, myself included, would have expected a more significant move, especially considering the current levels." The rupee is not too far from its year-to-date high hit last week. WORD OF CAUTION Despite the stability in the rupee post the tariff announcement, analysts caution against anticipating a further uptick from here. "We believe are at the lower side of the dollar-rupee range," Abhishek Goenka, CEO at FX advisory firm IFA Global, said, adding that he his clients have been hedging dollar payments between the 85.50-86 level. Kunal Kurani, associate vice president at Mecklai Financial, concurred, saying the dollar/rupee pair "has largely bottomed out" and he has been advising his clients to hedge more "and most of them are listening". The recommendations to increase dollar payment hedging follows the rupee's over 2% rally last month on the back of a turnaround in foreign portfolio inflows and unwinding of bearish wagers on the currency. However, Barclays Bank, in a note last week, said the rally in the rupee was likely to fade. The rally "to a large extent, has been a late catch-up trade to the rest of EM, and we do not expect INR appreciation to be sustained." "Our forecasts look for gradual depreciation in the months ahead." It expects the rupee to fall to 87.50 through the third quarter of 2025 and to 88.20 in the fourth quarter. https://www.reuters.com/markets/currencies/rupee-shows-resilience-us-tariffs-strategists-advise-caution-2025-04-03/
2025-04-03 06:40
April 3 (Reuters) - Oil major BP's (BP.L) , opens new tab Trinidad and Tobago unit (bpTT) said on Thursday it had begun production from the Cypre gas project. Cypre is one of BP's 10 major projects expected to start up worldwide between 2025 and 2027, announced as part of BP's reset strategy to grow its upstream production. Sign up here. As part of a broader strategy shift announced in February, BP aims to grow oil and gas production to between 2.3 million barrels of oil equivalent per day (boepd) and 2.5 million boepd by 2030. At peak, Cypre is expected to deliver around 45,000 boepd, or about 250 million standard cubic feet of gas. BPTT added that Cypre's first phase of the development, which includes four wells, was completed by the end of 2024, with the second phase slated to begin in the second half of this year. https://www.reuters.com/business/energy/bp-begins-production-cypre-project-trinidad-tobago-2025-04-03/
2025-04-03 06:32
April 3 (Reuters) - BlackRock (BLK.N) , opens new tab could hit another roadblock in its attempt to secure control of two flagship ports near the Panama Canal once the Central American country releases an audit on a 25-year concession granted to Hong Kong-based CK Hutchison (0001.HK) , opens new tab. Final signature of the deal in Panama, part of a broader $22.8 billion transaction between a BlackRock-led group and CK Hutchison including over 40 ports in 23 countries, is expected to be delayed as criticism grows in China, sources told Reuters last week. Sign up here. The deal's definitive documentation was initially expected to be signed by April 2, BlackRock and CK Hutchison said last month when they announced the deal. As China's market regulator begins an antitrust review on the deal, Panama's government is requesting documents from CK Hutchison, a telecoms-to-retail conglomerate owned by tycoon Li Ka-shing, to complete an audit on the concession. Panama's Maritime Authority also asked BlackRock and CK Hutchison to provide details of their deal, which must ultimately be green-lit by Panama. The deal includes 90% of the Panama Ports Company, which operates the Balboa and Cristobal ports at either end of the Panama Canal. WHAT COULD THE AUDIT FIND? The Panama ports audit was announced in January by the Comptroller General office as "the most important" of a series of reviews of key infrastructure concessions in Panama. Comptroller general Anel Flores said last week that results are expected in the coming 'days or weeks.' Flores has criticized previous audits, including one completed before CK Hutchison's concession was renewed in 2021, saying they were limited to confirming the fulfillment of operational goals. "We'll begin a severe, strong audit of those books and company," he said earlier this year. Flores has also complained about the 'poor yield' of the contract for Panama and the slow delivery of documents requested from CK Hutchison. In February, Panama's Attorney General released a binding opinion finding that the port contract was unconstitutional. Panama's Supreme Court will have the last word on that. If the Comptroller General finds irregularities in the concession renewal or the Supreme Court declares the contract to be unconstitutional, the concession could be revoked, complicating the BlackRock-CK Hutchison deal and possibly creating grounds for international arbitration, lawyers and experts have said. WOULD THE DEAL EASE TRUMP'S PRESSURE? U.S. President Donald Trump has celebrated the BlackRock-CK Hutchison deal, while China and pro-Beijing voices have criticized it, thrusting the firms involved and the Panamanian ports into the fray of the U.S.-China trade war. However, any hurdles to the deal increase the risk of a hardening of Trump's policy towards the canal. Since taking office in January, Trump has escalated his threats of controlling places he says could better serve U.S. interests, like the Panama Canal and Greenland. The ports are not part of the canal. However, American officials and politicians have said CK Hutchison's control of them, along with other concessions to Chinese firms in Panama, represents a security risk for the canal's operation. CK Hutchison has said the sale of the ports was purely commercial and unrelated to politics. Panama says the canal is operating in a fair and secure way, granting equal access to vessels from all origins. WHAT IS THE VIEW FROM CHINA? Pro-Beijing media have published a series of commentaries criticizing CK Hutchison's deal, depicting it as a betrayal of China and a "perfect cooperation" with the U.S. strategy to contain China. The pressure on CK Hutchison has deepened concerns that Hong Kong's edge as a financial hub will erode further amid geopolitical tensions. WHAT IS IN IT FOR BLACKROCK? The purchase is in line with BlackRock's recent investment drive in infrastructure, and it secures the fund manager a strong position near an essential global trade hub. The broader deal including many other ports worldwide could give BlackRock control of 10.4% of global container throughput, making it the world's third largest port operator, Chinese state media reported. The deal has also been described as helping BlackRock and CEO Larry Fink win political capital with Republicans, who in some states have restricted or banned BlackRock from managing retirement or treasury funds over the company's policies on environmental, social and corporate governance (ESG) investing. Some Republicans were reconsidering BlackRock bans after Trump praised the deal. https://www.reuters.com/business/could-panama-throw-new-wrench-into-blackrocks-ports-deal-2025-04-03/
2025-04-03 06:13
EIA says it found widespread corruption in timber supply chain Loopholes in deforestation laws allow illegal logging to thrive Agency says problematic sites in Para state had concessions renewed Para authority says it will punish anyone responsible for irregularities April 3 (Reuters) - Almost 2,000 container ships carrying illegally harvested timber from the Brazilian Amazonian state that will host this year's U.N. climate summit has reached Europe and the U.S. in recent years, showed an investigative report by an environmental NGO. The report , opens new tab released on Thursday by London-based Environmental Investigation Agency (EIA) featured satellite imagery, records and interviews with industry sources to trace about 53,000 cubic meters of timber to four sites in the state of Para that had been sanctioned, were under embargo or had other irregularities such as illegal gold mining. Sign up here. Para capital Belem will host the 2025 UN Climate Change Conference - or COP30 - from November 10-21. "The findings suggest a pervasive culture where corrupt deals and the manipulation of legal frameworks are widespread," the EIA, founded in 1984, said in the report. Wrongdoing or negligence was detected at nearly every step of the supply chain, from permitting to harvesting to exporting, it said. Laws in the U.S., Europe and Brazil to stem illegal logging have existed for decades, but the many loopholes that allow the illicit industry to thrive underscores the difficulty of policing a continental forest. In several cases, the EIA said Para's environmental regulator SEMAS renewed or failed to remove concessions where infractions had been reported, including one case that was later embargoed by federal environmental regulator Ibama. In a response to Reuters' questions, SEMAS said it was "reinforcing its standards and mechanisms" to evaluate forestry management plans and was committed to conserving forest resources, noting it seized over 12,000 cubic meters of illegal timber and embargoed more than 500,000 hectares of land due to mining and deforestation from February 2023 to January 2025. "The cases mentioned in the report will be analyzed and ... if irregularities are found, those responsible will be punished," SEMAS said. ENDANGERED SPECIES The EIA said it linked 19 sawmills, 16 exporters and 30 U.S. and European importers to what it suspected was tainted timber, which included high-value and protected species like ipe and cumaru that are used for luxury decking and furniture but are also on the endangered list of the Convention on International Trade in Endangered Species of Wild Fauna and Flora. It said companies including U.S.-based Sabra International had previously been flagged as buying illegal timber. Sabra International and several of the importing and exporting companies did not immediately reply to Reuters questions about the allegations. The EIA also said it found myriad red flags in the timber supply chain. Some sites that claimed to produce timber showed little to no evidence of logging, indicating they were used for laundering wood extracted illegally, the agency said. Some other sites that supplied exported timber had been previously fined or subjected to an embargo for illegal logging or had been reported for illegal mining, which would require operations to cease under Brazilian law, the report showed. After harvesting, sourcing documents are easily bought and sold to launder the illegal timber and the EIA said it interviewed several industry sources who claimed to have bribed officials to ease permitting or pass inspections. One anonymous sawmill representative said documents to launder ipe are obtained easily from other concessions. "Everyone does it," one sawmill representative said when it came to buying and selling timber credits. https://www.reuters.com/sustainability/climate-energy/illegal-luxury-timber-brazils-cop-state-makes-its-way-us-europe-investigation-2025-04-03/
2025-04-03 06:10
LITTLETON, Colorado, April 3 (Reuters) - Even in the dead of winter, Europe's solar farms have continued to expand their share of electricity production throughout the continent. Utility-scale solar farms generated 68 terawatt hours (TWh) of electricity during the first quarter of 2025, 32% more than during the same months in 2024 and the highest for the first quarter period on record, according to data from Ember. Sign up here. Solar power production registered steep jumps across all major economies over January-March, with Germany, Poland, the United Kingdom and France all posting solar output increases of over 25% from the same quarter last year. Steady increases in installed capacity have been the chief drivers of output growth, and indicate that even larger solar output levels can be expected over the coming six months when solar radiation levels peak in Europe. EXPANDING SCALE & SHARE Europe's largest solar power producer, Germany, generated 11% of its total utility electricity supplies from solar power during the opening quarter of 2025, up from an 8% share in 2024. The 12.5 TWh of electricity produced by Germany's solar parks during January-March was 27% more than during the same period of 2024, and 73% greater than what was produced during the first quarter of 2020. Looking forward, Germany's solar farms could generate more than 25% of the country's utility-supplied electricity during the next two quarters. In 2024 a record 25% of Germany's electricity came from solar during the July to September quarter, so the larger generation footprint in place in 2025 makes a 30% share target viable. In Spain, the January-March solar output total was up only 10% from the year before, but solar's share of the generation mix hit a new high for the quarter of 15%. With the sun-drenched summer still ahead, other solar share goals are now in sight, including the 29% solar-share record set during the second quarter of 2024. GROWTH MARKETS Further east, solar power's penetration into electricity generation mixes is more limited, but is still bound to hit new records this year. In Poland, where solar capacity jumped by 300% just between 2020 and 2023, solar power is on track to surpass 20% of total electricity supplies during the next two quarters. Poland is Europe's most coal-dependent economy, but the rapid growth in clean power supplies since 2020 has allowed Poland's utilities to make cuts to fossil-fired generation while lifting total electricity generation. Between 2020 and 2024, Poland's solar output jumped by 677%, wind power has risen by nearly 60%, and total clean power supplies have climbed by 80%. In response to that higher supply load, coal-fired electricity output has dropped by 15%, while total fossil fuel-fired production is down 7%. Further increases in clean output, driven mainly by new solar farms, will allow for additional cuts to coal use, and further reductions to power pollution. In the UK, solar power accounted for 4% of all utility-supplied electricity during the first quarter of 2025, but will likely generate more than 10% of total electricity during the next two quarters when daylight hours are longest. Like in Poland, higher clean power output in the United Kingdom has allowed utilities there to cut back on fossil fuel use, and in the case of the UK stop coal-fired production altogether in 2024. However, to ensure overall electricity supplies continue to rise in line with demand, more clean power generation capacity is widely expected, with solar power supplies growing faster than any other power source. That sets the stage for further growth in solar capacity and generation throughout Europe, and a higher share of solar power within regional electricity mixes. The opinions expressed here are those of the author, a market analyst for Reuters. https://www.reuters.com/business/energy/solar-output-marches-higher-across-europe-so-far-2025-maguire-2025-04-03/
2025-04-03 05:43
Trump unveils 10% base tariff on imports Spot gold hits record high of $3,167.57 an ounce Trump's policies to spur further central bank gold buying Silver falls over 4% April 3 (Reuters) - Gold prices took a breather on Thursday after surging to yet another all-time high following U.S. President Donald Trump's announcement of sweeping import tariffs, which drove investors to the safe-haven asset. Spot gold was down 1.4% to $3,090.00 at 1130 GMT amid some profit-taking, having hit a record peak of $3,167.57 earlier in the day. U.S. gold futures were down 1.7% to $3,111.40. Sign up here. Gold has continued to build on last year's rally, with prices rising 18% in 2025 as a combination of factors - including economic and geopolitical uncertainties, robust central bank purchases and increased flows into gold-backed exchange-traded funds - supported the metal. "Weaker trade, higher input costs and shrinking margins are badly hurting the stock market, while geopolitical mistrust is deepening," said Adrian Ash, director of research at BullionVault. "Such a gloomy outlook for economic growth offers the perfect backdrop for further gains in gold." Trump on Wednesday unveiled plans to slap a 10% tariff on most goods imported to the U.S., as well as much higher levies on dozens of rivals and allies alike. The far-reaching duties have sent global markets reeling amid concerns they could dampen economic growth and stoke inflation. Central banks are expected to help keep gold's stunning rally going this year, with buying aimed at further diversifying reserves away from the dollar. Analysts at ANZ said gold prices would push towards $3,200 over the next six months. But Trump's tariffs do not apply to certain goods, including copper, gold, energy and "certain minerals that are not available in the United States", a White House fact sheet showed. Gold stocks in COMEX warehouses in the U.S. have jumped in recent months on fears import tariffs might curb shipments. Spot silver slipped 4.7% to $32.44, its lowest since March 11. Since the introduction of a minimum 10% baseline tariff in countries importing semiconductors, where silver is used extensively, demand has become a concern, said Reliance Securities' senior analyst Jigar Trivedi. Platinum fell 2.6% to $957.60, and palladium lost 1.6% to $954.78. https://www.reuters.com/markets/commodities/safe-haven-gold-hits-record-peak-trump-announces-sweeping-tariffs-2025-04-03/
