2025-04-02 12:35
Dmitriev due to meet Witkoff in Washington Witkoff is key player in Ukraine peace efforts Dmitriev's spokeswoman declines immediate comment MOSCOW, April 2 (Reuters) - A visit by Russian President Vladimir Putin's investment envoy, Kirill Dmitriev, to the United States for talks with members of Donald Trump's administration is possible, the Kremlin said on Wednesday, but declined to give any further details. Reuters reported on Tuesday that Dmitriev is expected in Washington for talks this week, the most senior Russian official to visit since Moscow invaded Ukraine in 2022. The news was first reported by CNN. Sign up here. Kremlin spokesman Dmitry Peskov, when asked by reporters if Dmitriev would be visiting Washington for talks with Trump administration officials, including U.S. special envoy Steve Witkoff, said that such a visit was possible. "Yes, I confirm that such a visit may be possible," Peskov said. "We continue to communicate with the Americans through various channels. I can't tell you anything more specific." The Russian Direct Investment Fund, which Dmitriev heads, declined immediate comment. Trump, who says he wants to be remembered as a peacemaker, has repeatedly said he wants the three-year war in Ukraine to end and has warned of the risks of it escalating into World War Three between the United States and Russia. But the U.S. president said on Sunday he was "pissed off" with Putin and spoke of the possibility of imposing sanctions on those who buy Russian crude. Russia is the world's second largest exporter of crude after Saudi Arabia. Trump has also expressed frustration with Ukrainian President Volodymyr Zelenskiy, who he said was trying to renegotiate a minerals deal. "Putin remains open to peace talks," the Kremlin's Peskov said. "President Putin remains open to seeking a political and diplomatic settlement in Ukraine." PUTIN'S INVESTMENT ENVOY It is not publicly known what Dmitriev would discuss in Washington but he could bring a message from Putin to Trump. The Stanford-educated former Goldman Sachs investment banker is one of the most U.S.-savvy members of Russia's elite with close relations to some key members of the Trump team. He may be key in repairing relations that were, until Trump's January inauguration, the worst between Moscow and Washington since the most dangerous junctures of the Cold War. Dmitriev, 49, played a role in early contacts with the U.S. when Trump was first elected president in 2016, as well as in building relations with Saudi Arabia, which led to an oil price agreement under the expanded OPEC+ producers' forum. He has regular meetings with Putin and U.S. sanctions statements cast Dmitriev as "a known Putin ally". Over recent weeks, Dmitriev has mentioned a host of initiatives in which Russia and the United States could work together, from investment, rare earths and energy to the Arctic, space and cooperation with Elon Musk. https://www.reuters.com/world/europe/putins-investment-envoy-dmitriev-may-visit-washington-kremlin-says-2025-04-02/
2025-04-02 12:27
ALMATY, Kazakhstan, April 2 (Reuters) - Kazakh geologists have discovered a rare earth metal deposit with estimated resources of more than 20 million metric tons at a depth of up to 300 metres, the country's industry and construction ministry said in a statement on Wednesday. Kazakhstan does not currently feature in the U.S. Geological Survey's list of countries by rare earth metal deposits. If confirmed, the deposit would place Kazakhstan behind only China and Brazil by size of reserves. Sign up here. In a statement on Telegram, the ministry said that the Zhana Kazakhstan site, which is 420 km (261 miles) from the country's capital, contained neodymium, cerium, lanthanum and yttrium, and that its average rare earth metal content is 700 grams per ton. It did not specify which companies may develop the site, or when. https://www.reuters.com/markets/commodities/kazakhstan-says-it-has-discovered-20-million-ton-rare-earth-metals-deposit-2025-04-02/
2025-04-02 12:04
Multi-strategy funds lower in March Niche strategies outperformed Deleveraging on tariff fears cost many LONDON, April 2 (Reuters) - Turbulent March markets stalled positive returns for some of the biggest global hedge funds while systematic and some smaller, more nimble funds ended the first quarter with positive returns, according to sources familiar with the matter. As investors adjusted to seismic shifts in German policies and growing U.S. tariff uncertainty, German 10-year bonds suffered their largest weekly selloff since 1990 , the euro saw its largest monthly gain since 2022 , and the S&P 500 its biggest weekly fall in six months (.SPX) , opens new tab. Sign up here. Hedge funds cut equity exposure in early March. The biggest funds faced margin calls, requiring traders to stump up more cash in risky markets, UBS told clients in a note on March 27. Portfolio losses stemmed from stocks that were sensitive to the overall rise and fall of markets, including the biggest U.S. tech names, it said. "...multi-strat funds acted quickly to raise cash, mitigate losses, and preserve profitable trades in other areas such as swap spreads and macro exposures," it added. Performance was not even among the biggest global multi-strategy funds. Citadel and Millennium Management returned -0.8% and -2% for the quarter, respectively, said sources. ExodusPoint posted gains of 3.5% for the quarter, after a positive performance in March, according to a person familiar with the matter. Balyasny Asset Management finished the quarter up 2.5%, said a separate source. Asia-based multi strategy funds' performance was relatively steady. Singapore's Dymon Asia Capital returned 2.8% for the first quarter. The five funds' results were first published by Bloomberg on April 1. With the S&P 500 down 5.8% for March, "those platforms with higher levels of exposure underperformed peers who have a greater exposure to fixed income strategies," said Kier Boley, co-head and CIO of UBP Alternative Investment Solutions. Hedge funds with a more systematic approach fared better, especially those with funds that trade managed futures and niche markets. Billionaire investor Cliff Asness's AQR Capital Management finished the first quarter with positive returns in several of its funds, a source familiar with the matter said on Tuesday. The $128-billion hedge fund returned a positive 3.4% performance in March. Its multi-strategy fund, Apex Strategy, finished with a 9% first-quarter return. It benefited from a balanced long and short strategy. It also saw arbitrage gains, exploiting the difference of one financial asset against another, said the source. A long position expects an asset to rise, whereas a short position makes money when it declines in value. AQR's Managed Futures Full Strategy posted an 8.2% return for the quarter. This fund was buoyed by stocks trades but also benefited from successful fixed-income and commodities trades. Hedge fund EDL Capital, which trades assets such as currencies and bonds based on global macroeconomic outlooks, has returned 22% so far in 2025, a source familiar with the situation said on Wednesday. The $1.5-billion fund, run by star trader Edouard de Langlade, finished March up 14%, after returning 5.9% in February, the source said. Bridgewater Associates' flagship fund Pure Alpha 18% volatility posted a gain of 9.9% in the first quarter, Reuters reported. Hedge funds picking long and short stock positions posted a negative 2.4% return in March, whereas systematic stock traders gained over 4%, Goldman Sachs (GS.N) , opens new tab said in a note to clients on Wednesday. https://www.reuters.com/markets/wealth/hedge-fund-edl-capital-returns-22-q1-2025-says-source-2025-04-02/
2025-04-02 11:32
Trump unveils 10% base tariff on imports Dozens of countries hit with higher duties Stock markets sink amid fears for global growth China, EU vow countermeasures WASHINGTON/BEIJING/BRUSSELS, April 3 (Reuters) - President Donald Trump's move to slap a 10% tariff on most goods imported to the United States, as well as much higher levies on dozens of rivals and allies alike, has intensified a global trade war that threatens to stoke inflation and stall growth. The sweeping penalties announced against the serene backdrop of the White House Rose Garden on Wednesday immediately unleashed turbulence across world markets and drew condemnation from other leaders now facing the end of an era of trade liberalization that has shaped the global order for decades. Sign up here. As Asia digested the news on Thursday, stock markets in Beijing and Tokyo sank to multi-month lows, with U.S. and European stock futures also pointing to sharp losses as investors scrambled to the safety of bonds and gold. Now facing 54% tariffs on exports to the U.S., the world's No. 2 economy China vowed countermeasures, as did the European Union - Washington's friends and foes united in criticism of measures they fear will deal a devastating blow to global trade. "The consequences will be dire for millions of people around the globe," EU chief Ursula von der Leyen said in a statement, adding the 27-member bloc was preparing to hit back if talks with Washington failed. U.S. Treasury Chief Scott Bessent earlier warned that any such retaliatory moves would only lead to escalation. Among close U.S. allies, the European Union was targeted with a 20% rate, Japan with 24%, South Korea with 25% and Taiwan with 32%. Even some tiny territories and uninhabited islands in the Antarctic were hit by tariffs, according to a list posted by the White House on X. The base tariffs go into effect on April 5 and the higher reciprocal rates on April 9. Trump said the "reciprocal" tariffs were a response to duties and other non-tariff barriers put on U.S. goods. He argued that the new levies will boost manufacturing jobs at home. "For decades, our country has been looted, pillaged, raped and plundered by nations near and far," Trump said. Outside economists have warned that tariffs could slow the global economy, raise the risk of recession, and increase living costs for the average American family by thousands of dollars. Canada and Mexico, the two largest U.S. trading partners, already face 25% tariffs on many goods and will not face additional levies from Wednesday's announcement. Even some fellow Republicans have expressed concern about Trump's aggressive trade policy. Within hours of Wednesday's announcement, the Senate voted 51-48 to approve legislation that would terminate Trump's Canadian tariffs, with a handful of Republicans breaking with the president. Passage in the Republican-controlled U.S. House of Representatives, however, was seen as unlikely. Trump's top economist, Stephen Miran, told Fox Business on Wednesday the tariffs would work out well for the U.S. in the long run, even if they cause some initial disruption. "Are there going to be short-term bumps as a result? Absolutely," Miran, the chairman of Trump's Council of Economic Advisors, said. ENDING 'DE MINIMIS' The reciprocal tariffs do not apply to certain goods, including copper, pharmaceuticals, semiconductors, lumber, gold, energy and "certain minerals that are not available in the United States," according to a White House fact sheet. Following his remarks, Trump also signed an order to close a trade loophole used to ship low-value packages - those valued at $800 or less - duty-free from China, known as "de minimis." The order covers goods from China and Hong Kong and will take effect on May 2, according to the White House, which said the move was intended to curb the flow of fentanyl into the U.S. Chinese chemical makers are the top suppliers of raw materials purchased by Mexico's cartels to produce the deadly drug, U.S. anti-narcotics officials say. A Reuters investigation last year showed how traffickers often route these chemicals through the United States by exploiting the de minimis rule. China has repeatedly denied culpability. Trump is also planning other tariffs targeting semiconductors, pharmaceuticals, and potentially critical minerals, the official said. Earlier in the day, the administration said a separate set of tariffs on auto imports that Trump announced last week will take effect starting on Thursday. Trump previously imposed 25% duties on steel and aluminum and extended them to nearly $150 billion worth of downstream products. Tariff concerns have already slowed manufacturing activity across the globe, while also spurring sales of autos and other imported products as consumers rush to make purchases before prices rise. Now as the reality of the new tariffs sink in, companies around the world must weigh up how to adjust, with their options limited and unpalatable for their customers. "This is how you sabotage the world’s economic engine while claiming to supercharge it," said Nigel Green, CEO of global financial advisory deVere Group. "The reality is stark: these tariffs will push prices higher on thousands of everyday goods - from phones to food - and that will fuel inflation at a time when it is already uncomfortably persistent." https://www.reuters.com/world/us/trump-escalate-global-trade-tensions-with-new-reciprocal-tariffs-us-trading-2025-04-02/
2025-04-02 11:31
BUDAPEST, April 2 (Reuters) - Hungary has deployed soldiers and launched new disinfection measures to help contain an outbreak of foot-and-mouth disease in a northwestern area bordering Slovakia and Austria, the agriculture minister said on Wednesday. Hungary reported its first case in more than 50 years of the disease, which often leads to trade restrictions, on a cattle farm early last month. Sign up here. Since then, neighbouring Slovakia has detected outbreaks at five locations after reporting its first cases in March. It has also stepped up measures to contain the disease's spread. Hungarian Agriculture Minister Istvan Nagy said foot-and-mouth disease was found at two additional farms in Gyor-Moson-Sopron county by Wednesday morning, affecting 3,500 cattle in total. "We are making every effort to prevent any additional outbreaks," Nagy said in a Facebook video. The defence ministry did not immediately respond to emailed questions regarding the number of soldiers deployed to assist the containment effort. Hungary's cattle stock numbered 861,000 heads based on a livestock census in December, little changed from levels a year earlier. That constituted 1.2% of the European Union's total cattle stocks, official statistics showed. Data on the website of Hungary's National Food Chain Safety Office showed foot-and-mouth disease affecting a total of four farms in Hungary, all of them located in the country's northwest, while checks at more than 600 other farms returned negative results. Nagy said Hungarian authorities have launched additional measures, including disinfection points at border crossings and highway exits in the northwest to prevent the disease from spreading beyond the affected county. Foot-and-mouth disease poses no danger to humans but causes fever and mouth blisters in cloven-hoofed ruminants such as cattle, swine, sheep and goats. https://www.reuters.com/world/europe/hungary-deploys-military-contain-foot-and-mouth-outbreak-2025-04-02/
2025-04-02 11:29
JOHANNESBURG, April 2 (Reuters) - The South African rand dropped sharply on Wednesday as a fractious budget vote threw into doubt the solidity of the coalition government. At 1640 GMT, the rand traded at 18.7725 against the dollar , about 1.4% weaker than Tuesday's closing level. Sign up here. While the budget's fiscal framework and revenue proposals passed in parliament, the second-biggest party in the coalition, the pro-business Democratic Alliance, voted against them and said it would challenge the outcome in court. Finance Minister Enoch Godongwana said he did not think a party could vote against a budget and then be part of its implementation. "The clear divide between the ANC and DA puts the state of the Government of National Unity in question," said Shaun Murison, a senior market analyst at IG. The African National Congress, the biggest party in the coalition, secured the backing of an assortment of smaller coalition partners and parties outside the coalition to get the legislation passed. The Johannesburg Stock Exchange's Top-40 index (.JTOPI) , opens new tab closed down 0.9% while the yield on the benchmark 2030 government bond rose 21 basis points to 9.315%. https://www.reuters.com/markets/currencies/south-african-rand-falls-budget-wrangling-trump-tariffs-2025-04-02/
