2025-06-07 10:35
DUBROVNIK, Croatia, June 7 (Reuters) - Ongoing trade tensions between the United States and the rest of the world are a shock to the entire global economy, meaning the Federal Reserve's and the European Central Bank's monetary policies are unlikely to diverge for long, ECB board member Isabel Schnabel said on Saturday. "I expect this trade conflict to play out as a global shock that's working through both lower demand and supply," she told a conference in Croatia. Sign up here. "We can discuss which of the two effects on inflation is larger because that determines the net effect. But in any case, I would not expect a sustained decoupling (between the ECB and the Fed)," she said. https://www.reuters.com/business/finance/ecbs-schnabel-sees-no-lasting-decoupling-fed-2025-06-07/
2025-06-07 10:06
DUBROVNIK, Croatia, June 7 (Reuters) - The European Central Bank is "nearly done" cutting interest rates if inflation settles at 2% as expected, ECB policymaker Boris Vujcic said on Saturday. The ECB cut interest rates on Thursday for the eighth time in the past year and signalled a policy pause next month since inflation was now safely back at its 2% target after three years of overshooting. Sign up here. "I would agree we are nearly done and that we are in a good position," Croatia's central bank governor told reporters on the sidelines of a conference. "If our projections materialise as they are in June I would think this is the right qualification of our monetary policy stance." He warmed any surprises in growth and inflation data would "affect" the ECB's thinking, as would the hard-to-predict outcome of the European Union's trade negotiations with the United States. https://www.reuters.com/business/finance/ecb-is-nearly-done-with-cuts-if-forecasts-hold-vujcic-says-2025-06-07/
2025-06-07 09:06
TAIPEI, June 7 (Reuters) - A senior Taiwanese official said on Saturday he had this week visited the site of a potentially enormous new liquified natural gas (LNG) project in Alaska that the Trump administration has been pushing hard to allies in Asia as a supply option. Energy developer Glenfarne had said on Tuesday that 50 firms had formally expressed interest in contracts worth more than $115 billion from its Alaska LNG project, a massive infrastructure deal championed by U.S. President Donald Trump. Sign up here. Writing on his Facebook page, Pan Men-an, secretary-general to Taiwan President Lai Ching-te, said he had attended an energy conference in Alaska at the invitation of U.S. Secretary of Energy Chris Wright and visited the state's North Slope. Phase One of the project is expected to deliver natural gas about 1,230 km (765 miles) from the North Slope to the Anchorage region. "Despite the freezing temperatures, we talked enthusiastically about building resilience and responsibility as democratic partners in the face of global climate change and the challenges of authoritarianism," Pan wrote. "In the face of trade challenges and international turbulence, we have no choice but to rise to the occasion," he said, without mentioning whether he had signed any deals while there. The presidential office said late on Friday that Pan had been accompanied by Fang Jeng-zen, chairman of Taiwan's state-owned energy company CPC. CPC in March signed a non-binding agreement to buy LNG and invest in the project, a move Taiwan's president has said would ensure the island's energy security. If built, the Alaska LNG project will export up to 20 million metric tons of the superchilled gas a year. It would open direct access for U.S.-made LNG to Asian markets without having to go through the Panama Canal or around the Horn of Africa, reducing transit time and costs. Taiwan has pledged to massively ramp up its purchases from the United States, including energy, to reduce a yawning trade surplus that has angered Washington. https://www.reuters.com/business/energy/senior-taiwan-official-visits-site-new-alaska-lng-project-2025-06-07/
2025-06-07 07:29
China commerce ministry say issues were discussed in Paris China to announce final decision on EU brandy imports on July 5 China-EU consultations on EV minimum price in final stage SHANGHAI, June 7 (Reuters) - China is willing to accelerate the examination and approval of rare earth exports to European Union firms and will also deliver a verdict on its trade investigation of EU brandy imports by July 5, its commerce ministry said on Saturday. Price commitment consultations between China and the EU on Chinese-made electric vehicles exported to the EU have also entered a final stage but efforts from both sides are still needed, according to a statement on the Chinese Commerce Ministry's website. Sign up here. The issues were discussed between Chinese Commerce Minister Wang Wentao and EU Trade Commissioner Maros Sefcovic in Paris on Tuesday, according to the statement. The comments mark progress on matters that have vexed China's relationship with the EU over the past year. Most recently, China's decision in April to suspend exports of a wide range of rare earths and related magnets has upended the supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world. The ministry said China attached great importance to the EU's concerns and "was willing to establish a green channel for qualified applications to speed up the approval process." In a separate statement the commerce ministry issued later on Saturday, it said China was willing to further strengthen communication and dialogue with relevant countries on rare earth export controls as it recognised that demand from sectors such as robotics and electric vehicles had risen. BRANDY, EVS The ministry earlier said that Commerce Minister Wang during the meeting "expressed the hope that the EU will meet us halfway and take effective measures to facilitate, safeguard and promote compliant trade in high-tech products to China." Chinese anti-dumping measures that applied duties of up to 39% on imports of European brandy - with French cognac bearing the brunt - have also strained relations between Paris and Beijing. The brandy duties were enforced days after the EU took action against Chinese-made electric vehicle imports to shield its local industry, prompting France's President Emmanuel Macron to accuse Beijing of "pure retaliation". The Chinese duties have dented sales of brands including LVMH's (LVMH.PA) , opens new tab Hennessy, Pernod Ricard's (PERP.PA) , opens new tab Martell and Remy Cointreau (RCOP.PA) , opens new tab. Beijing was initially meant to make a final decision on the brandy duties by January, but extended the deadline to April and then again to July 5. China's Commerce Ministry said on Saturday that French companies and relevant associations had proactively submitted applications on price commitments for brandy to China and that Chinese investigators had reached an agreement with them on the core terms. Chinese authorities were now reviewing the complete text on those commitments and would issue a final announcement before July 5, it said. In April, the European Commission said the EU and China had also agreed to look into setting minimum prices of Chinese-made electric vehicles instead of tariffs imposed by the EU last year. China's commerce ministry said the EU had also proposed exploring "new technical paths" relating to EVs, which the Chinese side was now evaluating. https://www.reuters.com/world/china/china-says-it-may-speed-up-rare-earths-application-approvals-eu-2025-06-07/
2025-06-07 05:39
SYDNEY, June 7 (Reuters) - Global miner Rio Tinto (RIO.AX) , opens new tab is in talks with Australian federal and state governments about a multibillion-dollar bailout for its struggling Tomago aluminium smelter in New South Wales state, the Australian Financial Review reported. The newspaper, citing sources it did not name, reported late on Friday that talks centred on the smelter's electricity contract for 2026 to 2029 and federal production tax credits. Sign up here. Rio and the offices of New South Wales Premier Chris Minns and Prime Minister Anthony Albanese did not immediately respond to Reuters requests for comment on the report. The future of the facility, majority owned by Rio, has been uncertain for months due in part to spiralling energy costs, according to the report. In February, Rio, the world's largest iron ore producer, said it would decide the smelter's future by mid-year. The facility about 125 km (80 miles) north of state capital Sydney uses around 10% of New South Wales' power supply to produce 590,000 tonnes of aluminium per year. In addition to Rio, it is owned by CSR and Hydro Aluminium. Australia's centre-left government in January pledged A$2 billion in production credits to help support the country's four aluminium smelters, including the Tomago facility, switch to renewable power before 2036. https://www.reuters.com/business/energy/rio-tinto-bailout-talks-australian-aluminium-smelter-afr-reports-2025-06-07/
2025-06-07 03:34
Indonesia to get zero tariffs on 80% of exports to EU EU to provide special treatment to Indonesia on deforestation JAKARTA, June 7 (Reuters) - Indonesia said on Saturday that free trade negotiations with the European Union, which have been ongoing for nine years, are expected to be concluded by the end of June. Airlangga Hartarto, the chief economic minister for Southeast Asia's biggest economy, met with EU Commissioner for Trade Maros Sefcovic in Brussels on Friday. Sign up here. "Indonesia and the European Union have agreed to conclude outstanding issues and we are ready to announce a conclusion of substantial negotiations by the end of June 2025," Airlangga Hartarto said in a statement. Indonesia will get zero tariffs for 80% of its export products to the EU and removal of non-tariff barriers, as it pushes for bigger market access for footwear, garments, palm oil and fishery products, Airlanga told a press conference later on Saturday. The EU has discussed Jakarta's rules on mandatory use of local content in products sold in Indonesian market, the automotive industry, trade of critical minerals and investment facilities, Airlangga said. Indonesia and the EU have previously disagreed on EU trade rules for products with potential links to deforestation that could affect Indonesian palm oil. Airlangga said the bloc's deforestation rules were not part of the free trade negotiations, but Sefcovic had "promised to provide special treatment towards Indonesia regarding deforestation." He did not elaborate. Denis Chaibi, EU ambassador to Indonesia, said that talks were ongoing and "we will communicate in details when we have an outcome." Chaibi did not respond to a question about the special treatment. The EU is Indonesia's fifth-biggest trade partner, with total trade between the two reaching 27.3 billion euros ($31.11 billion) last year, according to the EU. Exports from the bloc were worth 9.7 billion euros in 2024, and it imported 17.5 billion euros' worth from Indonesia. Indonesian exports to the bloc could increase by more than 50% within three to four years after the trade deal takes effect, Airlangga said. Indonesian officials have been motivated to accelerate talks on free trade agreements, keen to diversify the country's export destinations as they deal with U.S. tariff challenges. ($1 = 0.8777 euros) https://www.reuters.com/markets/commodities/indonesia-expects-conclude-free-trade-talks-with-eu-by-end-june-2025-06-07/
