2025-04-24 09:43

LONDON, April 24 (Reuters) - The pound rallied against the dollar on Thursday amid growing investor pessimism over the lack of any real progress in de-escalating the trade war between the U.S. and China, the world's two largest economies. U.S. assets, including the dollar, had jumped on Wednesday following a report that President Donald Trump's administration was considering cutting its 145% levy on Chinese imports. Sign up here. Treasury Secretary Scott Bessent, separately on Wednesday, said high tariffs between his country and China were not sustainable, as Trump's administration signaled openness to de-escalating the trade war, which has raised fears of recession. For its part, China said on Thursday there had been no negotiations on the economy and trade and it urged the U.S. to lift all unilateral tariff measures if it really wished to resolve the issue, leaving investors roughly where they were earlier in the week in terms of clarity. The pound , which has risen 6.5% so far this year, last traded at $1.331, not far off its highest in seven months. Against the euro, sterling has displayed less resilience. The common European currency was up 0.2% at 85.54 pence, not far off early April's 18-month highs. Sterling, like most currency pairs, has been largely dominated by action in the dollar. Evidence from data so far this month paints a picture of a slowing British economy, with business activity weakening, along with the public finances. Figures from the Office for National Statistics on Wednesday showed the British government borrowed almost 15 billion pounds ($19.97 billion) more in the financial year that just ended than official budget forecasters had estimated a month ago, heaping yet more pressure on the public finances. Finance minister Rachel Reeves has minimal room for manoeuvre based on the government's self-imposed fiscal rules - equivalent to less than 1% of annual spending, meaning investors are watching public sector finance data more closely. "At this point, you may be wondering why this is relevant to the pound, as developed market currencies tend not to react too strongly to fiscal news," Commerzbank strategist Michael Pfister said. "However, the UK's recent growth has been almost entirely based on the public sector, with all other sectors moving sideways. And that was before the U.S. tariffs. If the government is now also out of the picture because it has to save more, the growth outlook looks even less rosy," he said. ($1 = 0.7512 pounds) https://www.reuters.com/world/china/sterling-gains-against-wilting-dollar-gloom-over-trade-returns-2025-04-24/

2025-04-24 09:12

LG considers shifting appliance production to Tennessee Tariffs could impact LG's business from third quarter SEOUL, April 24 (Reuters) - LG Electronics (066570.KS) , opens new tab is considering price increases for some products in response to U.S. tariffs and is also reviewing its options for shifting production of home appliances to the United States, the South Korean company said on Thursday. "We are optimizing our production locations and also considering price hikes through discussions with our distribution channels as a potential response," LG senior vice president Kim I-kueon said in a post-earnings conference call. Sign up here. Kim said LG was considering moving manufacturing of home appliances, including washers and dryers, to its factory in the U.S. state of Tennessee. The Tennessee plant's output could cover nearly one-fifth of LG's total home appliance sales in the U.S. market, he added. LG expects tariffs will have a major impact on its business from the third quarter if they go ahead, Kim said, adding that, in the meantime, the company had established a roadmap for price hikes to mitigate them. U.S. President Donald Trump has paused a raft of tariffs against dozens of trading partners until July. Asked about LG's Indian unit's delayed initial public offering, Kim said the company would not rush the decision and would instead first thoroughly review the optimal timing for the IPO. https://www.reuters.com/technology/lg-electronics-may-raising-some-product-prices-because-tariffs-media-says-2025-04-24/

2025-04-24 07:47

Company says project less valuable because of lithium price slump Lithium prices fell over 80% since peaking in 2022 Ghana government yet to respond ACCRA, April 24 (Reuters) - Atlantic Lithium (A11.AX) , opens new tab is continuing negotiations with Ghana's government to salvage its Ewoyaa lithium project, the company's chief Keith Muller said on Thursday as falling prices of the critical battery metal cast a shadow on viability of the West Africa nation's maiden lithium mine. The Australia-based miner is seeking concessions on Ghana's new mining revenue framework, which includes a 10% free carried interest for the state and a special 13% royalty on gross revenue from lithium production. Sign up here. "While current lithium prices present headwinds, we believe that through collaboration and prudent fiscal measures, we can advance Ewoyaa to production and deliver lasting value for all stakeholders," Muller said in a statement. The negotiations come as lithium prices have fallen more than 80% from their 2022 peak, putting pressure on the economic viability of new projects worldwide. Ahmed-Salim Adam, Atlantic Lithium's general manager, told Reuters separately in an interview that urgent revisions to the fiscal terms would help keep the project alive. LITHIUM PRICE RECOVERY UNDERMINED Ghana, Africa's lead gold producer, granted the Australian miner a 15-year lease to establish the mine by late 2024, hoping to capitalize on the EV boom. The Ewoyaa project, with an estimated resource of 35-40 million metric tons of lithium-bearing ore, is positioned to become one of the top 10 global spodumene concentrate producers, according to Atlantic Lithium, making it a significant new supply source outside the industry-dominant markets of Australia, Chile and China. It is estimated to produce around 360,000 tons of lithium annually, which will be exported to the U.S. However, construction of the project stalled on delayed parliamentary ratification, with the lithium price collapse now further complicating its viability and the company's development timeline. Despite a recent price recovery, driven by normalizing global auto production, industry analysts remain cautious. While "EV-led demand growth remains strong, it continues to be overwhelmed by mine supply growth," said Tom Price, Panmure Liberum's head of commodities, noting that U.S. President Donald Trump's 25% tariff further dampened prospects. West Africa's relatively recent entry to lithium also means investors will prefer to stay in established markets when prices are weak, Price said. "We are dedicated to working in a spirit of partnership ... to ensure Ewoyaa becomes a flagship project for the country and the region," Muller added. https://www.reuters.com/business/energy/atlantic-lithium-seeks-concessions-salvage-ghana-project-2025-04-24/

2025-04-24 07:25

MUMBAI, April 24 (Reuters) - India's foreign exchange and interest rate traders have turned cautious on fears of a possible escalation in tensions between New Delhi and Islamabad following a deadly militant attack in India's Kashmir region. Suspected militants killed 26 men at a tourist destination in Kashmir on Tuesday in the worst attack on civilians in the country in nearly two decades. Indian Foreign Secretary Vikram Misri said that there was cross-border involvement in the attack. Sign up here. New Delhi has suspended a six-decade old river-sharing treaty and closed the only land crossing between the nuclear-armed rivals. A day after the attack, the Indian rupee recorded its worst performance in two weeks. The currency continued to weaken on Thursday, falling to 85.6625 against the U.S. dollar. Worries about New Delhi's response to the attack are leading to some unease, according to three bankers. The Kashmir attack has played a role in the rupee's weakness, coupled with the recovery in the dollar index, a senior treasury official at a bank said. However, it is difficult to quantify the exact impact of each factor on the rupee's decline, said the banker, who asked not to be identified as he is not permitted to speak to media. Dollar/rupee forward premiums rose alongside the rupee’s decline. Indian bonds fell and interest rate swaps hardened. While the size of the moves "is not big by any measure", it reflects the uncertainty on what could unfold next, a forex and swap trader at a bank said. India's 5-year overnight index swap rate has risen 12 basis points from Wednesday's low, while the 1-year OIS is up by about half that amount. Meanwhile, the 10-year India benchmark bond yield climbed to 6.36% on Wednesday and held near that level on Thursday. Alok Sharma, head of treasury at ICBC, anticipates the 10-year yield will stay above 6.30% because of the caution following the attack. This sentiment is driving "more paying interest" in OIS and forward premiums, he said. Kashmir has been at the heart of India-Pakistan animosity for decades and the site of multiple wars, insurgency and diplomatic standoffs. The market was "reacting to uncertainty, not fundamentals," Manish Bhargava, CEO of Straits Investment Management, said. "The path forward depends on how the situation unfolds." https://www.reuters.com/markets/currencies/indias-forex-interest-rate-traders-turn-cautious-after-kashmir-attack-2025-04-24/

2025-04-24 07:24

MAOMING, China, April 24 (Reuters) - In Maoming, a southern Chinese city where a giant tilapia statue watches over traffic at an intersection, the fish isn't just a budget-friendly dinner, but a profession, income and way of life for thousands. Today, all of that is at risk from the trade war. Sign up here. An area roughly one and a half times the size of San Francisco is given over to tilapia farms in Maoming. Fish nurseries and feed lots in turn sustain the farms. Sixteen factories dot the city churning tilapia into fillets for export, much of it to supermarket freezers in the U.S.. Several rounds of U.S. tariffs mean China's $425 million in tilapia exports to the United States are subject to duties of 170%, all but pricing them out of their largest export market. In late April, fish nurseries in Maoming visited by Reuters talked of not getting orders for new fry; feed makers said customers are cutting back. Processors are idle and many farmers say they are making losses at today's prices. Tongwei, one of China's biggest aquaculture businesses, said this month that one-in-10 tilapia farmers in the country could lose their jobs. "These high tariffs have hit us brutally," said Huang Songfei, a longtime buyer in Maoming. "The whole chain is hurting. People are at risk of losing their jobs." Tilapia may be a small segment of trade between the U.S. and China but the threat to livelihoods in Maoming is also being felt in both countries as the trade war throws up massive tariffs on imports. Or, as Huang, put it: "We're stuck." TO BREED OR NOT TO BREED March to May is usually the peak stocking season for tilapia. Recently hatched fish are typically in high demand, swiftly sold and sent off to farmers. This spring, orders are scarce. "This is the hardest year ever," a worker said, asking not to be identified. "Normally, we'd have sold a lot by now. But no one's buying. Farmers are scared." Her boss said sales have fallen by more than half. "Some aren't even exporting to the U.S., but they are panicking anyway," he said, also requesting anonymity. "It's a chain reaction." Tilapia prices crashed 17% in early April as Washington and Beijing traded tariff blows. Despite a modest recovery, prices are dangerously low and some farmers are struggling to make ends meet, Huang said. The city's 16 export processors are also struggling. They once exported about 100,000 tonnes of tilapia a year, mostly to the United States and Canada, according to the local government, enough to satisfy the average annual fish intake of 25 million Americans. "If this keeps going, everyone will go bankrupt," said Zhu Huazhi, a buyer for several processing plants. More than 60% of their tilapia once went to the U.S.. SEARCHING FOR A LIFELINE In nearby Hainan province, the U.S. accounts for half of its tilapia exports and the local aquatic products' association urged companies this month to find new markets at home and abroad. However, replacing American demand is difficult. While markets exist in the European Union, Africa and the Middle East - they can't quickly or completely replace U.S demand. Africa, for example, largely imports whole fish with minimal processing, according to a tilapia exporter. The domestic economy is no easy fix either. The local market is weak, consumers are cautious and spending is slow. In Maoming, people are pinning their hopes on a trade deal. "We'll see who can survive this," Zhu said. "I believe in China's economy. If the tariffs are resolved, orders will come back." ($1=7.2995 Chinese yuan renminbi) https://www.reuters.com/world/china/caught-tariff-net-us-trade-war-threatens-chinese-fish-town-2025-04-24/

2025-04-24 06:54

MUMBAI, April 24 (Reuters) - India is expecting steel imports from China, South Korea and Japan to slow after imposition of temporary tariffs this week, a government source directly aware of the situation told Reuters on Thursday. On Monday, India, the world's second-biggest producer of crude steel, imposed a 12% temporary tariff, or provisional safeguard duty, on some steel imports for 200 days. Sign up here. India's imports of finished steel products rose for a second straight year in fiscal year 2025 -- with shipments reaching a nine-year high -- a trend that has continued with rising shipments from China, South Korea and Japan. "South Korea, China and Japan are the main exporters of steel and imports from there should come down," the government source, who declined to be identified due to sensitive nature of discussions, said. Korean companies are opposing the safeguard duty on steel imports, the government source said, adding that South Korea's POSCO (058430.KS) , opens new tab and Hyundai (011760.KS) , opens new tab are two major suppliers of steel to India from that country. POSCO and Hyundai did not immediately respond to a Reuters' request for comment. https://www.reuters.com/world/india/india-expects-steel-imports-slow-china-skorea-japan-government-source-says-2025-04-24/