2025-12-15 12:16

Dec 15 (Reuters) - The Trump administration is ramping up efforts to secure U.S. supply chains for critical minerals and semiconductors by converting federal grants for companies into equity stakes, aimed at reducing reliance on China. The administration has taken or discussed stakes in several companies as part of the shift to direct ownership from traditional subsidies. Sign up here. Following are the companies linked to the strategic investment push: ** Korea Zinc (010130.KS) , opens new tab Stake acquired: Around 10% Project: $7.4 billion smelter in Tennessee Details: Korea Zinc will build a $7.4  billion smelter in Tennessee through a joint venture with U.S. partners. The U.S. Department of War will hold a 40% stake in the JV, while the Commerce Department will provide $210  million in subsidies under the CHIPS Act. Korea Zinc will issue $1.9  billion in new shares to the JV and U.S. strategic investors, giving them about 10% of the company. The remaining $5.5  billion will come from $4.7  billion in U.S.-backed loans and other financing. Construction begins in 2026, with phased operations starting in 2029. Strategic Value: The project strengthens U.S. supply chains and reduces reliance on China, which dominates global critical mineral supply and recently restricted exports of antimony and germanium to the U.S. ** Trilogy Metals (TMQ.TO) , opens new tab Stake acquired: 10%, investment includes warrants to purchase an additional 7.5% Project: Upper Kobuk Mineral Projects (UKMP) in Alaska, a joint venture owned by Trilogy Metals and Australian miner South32 (S32.AX) , opens new tab. Details: The White House will invest about $35.6 million for the development of critical mineral resources at the UKMP, which is located in Alaska's Ambler mining district. Trump also signed an executive order directing his administration to permit an access road to the Ambler mining district. Strategic Value: Ambler mining district is a mineral-rich area with copper, zinc and lead deposits. ** Critical Metals , opens new tab(CRML.O) , opens new tab Stake under discussion: About 8% Project: Tanbreez rare earths deposit, Greenland Strategic value: Trump administration officials have discussed taking a stake in Critical Metals, four people familiar with the discussions told Reuters. A deal would give Washington a direct interest in the largest rare earths project in Greenland, the Arctic territory that Trump once suggested buying. ** Lithium Americas (LAC.TO) , opens new tab Stake acquired: 5% in parent company and 5% in Thacker Pass JV with General Motors (GM.N) , opens new tab Project: Thacker Pass lithium mine, Nevada Strategic value: The project is seen as a linchpin in building a domestic supply chain part of Washington's long-standing drive to boost U.S. production of lithium, a metal used to make batteries for electric vehicles and other electronics. ** MP Materials (MP.N) , opens new tab Stake acquired: About 15% Project: Mountain Pass rare earth mine, California Strategic value: MP operates the only U.S. rare earths mine and is working to boost domestic processing and magnet production. The U.S. Department of Defense (DoD) will become the largest shareholder in Las Vegas-based MP, making it Washington's most high-profile investment to date in the critical minerals sector. ** USA Rare Earth (USAR.O) , opens new tab Status: In discussions Details: CEO Barbara Humpton told CNBC that the company was in close talks with the White House while responding to a question about potential interest in striking a deal with the Trump administration. Strategic value: USA Rare Earth has been developing a mine in Sierra Blanca, Texas, and a neo magnet manufacturing facility in Stillwater, Oklahoma, which is expected to go commercial in the first half of 2026 ** Intel Corp (INTC.O) , opens new tab Stake acquired: 9.9% Strategic value: The investment strengthens U.S. supply chain security and supports Intel's plans to build and expand advanced manufacturing facilities domestically. https://www.reuters.com/business/autos-transportation/trump-administrations-investment-push-rare-earth-companies-chipmakers-2025-10-06/

2025-12-15 12:00

Goldman Sachs notes Asia was most net sold region last week Hedge funds sold tech stocks before Hang Seng, Nikkei indices fell Chinese equities net sold for four of last five weeks, Goldman Sachs notes LONDON, Dec 15 (Reuters) - Hedge funds sold Hong Kong and Japanese stocks last week, Goldman Sachs said in a note, just before the tech-heavy Hang Seng and Nikkei indices fell in the last two trading sessions on worries over over-inflated tech values. Japan's blue-chip Nikkei (.N225) , opens new tab share average dropped more than 1% on Monday as tech stocks tracked their Wall Street peers lower on lingering worries over stretched valuations and ahead of an expected Bank of Japan rate rise later this week. Sign up here. China (.CSI300) , opens new tab and Hong Kong (.HSI) , opens new tab stocks also slipped as a slew of lacklustre economic data and mounting default risks by property developer Vanke weighed on market sentiment. Hedge funds appeared to have anticipated the moves, according to data from a Goldman Sachs note to clients dated December 12 and seen by Reuters on Monday. Asia was by far the most net sold region last week, with both emerging and developed market stocks more sold than bought, the note said. Hedge funds dumped long positions in Hong Kong and added short bets in Japan, said Goldman's note. A long position expects an asset value to rise, whereas a short position wagers it will fall. Selling focused on technology and consumer stocks just before Friday afternoon's selloff with investors leaving technology for other sectors amid concerns about an AI bubble. The Philadelphia SE semiconductor index (.SOX) , opens new tab dropped more than 5% on Friday. JAPAN RATE BETS Some stocks in Japan benefited from the exodus from tech shares and hedge funds net bought industrial, financial and materials company equities, said Goldman Sachs. Japanese banking shares (.IBNKS.T) , opens new tab climbed 2% on Friday ahead of an expected rate increase by the Bank of Japan on Friday. Such bets were reinforced on Monday by the central bank's quarterly Tankan survey, which showed sentiment among big manufacturers rose to a four-year high. Higher interest rates boost returns from lending and investing. Elsewhere, hedge funds continued to sell Chinese equities, which had been net sold in four of the last five weeks and to a lesser extent stocks in India, said the bank. The speculators focused on stock sectors such as industrials and materials. https://www.reuters.com/sustainability/boards-policy-regulation/hedge-flow-hedge-funds-ditched-tech-stocks-japan-hong-kong-last-week-says-2025-12-15/

2025-12-15 11:50

Dec 15 (Reuters) - Sri Lanka's economy (LKGDP=ECI) , opens new tab grew 5.4% year-on-year in the third quarter of 2025, official data showed on Monday, signaling a sustained recovery from the decade's worst financial crisis in 2022. The island nation's economy had grown 4.9% in the preceding quarter. Sign up here. Sri Lanka's agriculture sector grew by 3.6% in the third quarter from a year earlier, while industrial output expanded by 8.1%, and services grew by 3.5%, the census and statistics department said in a statement. The island nation, which was emerging from the worst economic crisis in decades that peaked in 2022, is reeling from a severe cyclone that hit in late November. Cyclone Ditwah left 643 people dead and at its peak affected nearly 10% of the 22 million population. Floods caused by torrential rain damaged crucial infrastructure and the island's agriculture sector, authorities said. Growth is projected at 4.5% this year by the central bank but analysts say growth could slow to about 3% in 2026 due to Ditwah. "We are expecting a 0.5%-0.7% contraction in the economy due to the cyclone. The impact will be tempered as reconstruction spending, which could be about $2 billion, will also drive growth next year," said Shehan Cooray, head of research at HNB Stockbrokers. Sri Lanka, which is already under a four-year, $2.9 billion program from the International Monetary Fund, has sought $200 million in emergency funds from the global lender. The IMF expects the Sri Lankan economy to grow 3.1% in 2026. An IMF team will visit in January for a fresh assessment before releasing the sixth tranche of the original program. The World Bank is making up to $120 million in emergency support available by repurposing funds from ongoing projects. "This will support recovery and help restore essential services and infrastructure—including health care, water, education, agriculture, and connectivity—in the areas hit hardest by the cyclone," it said in a statement. https://www.reuters.com/world/asia-pacific/sri-lankan-economy-grew-54-third-quarter-2025-2025-12-15/

2025-12-15 11:41

Dec 15 - What matters in U.S. and global markets today By Mike Dolan , opens new tab, Editor-At-Large, Finance and Markets Sign up here. U.S. stock and bond markets caught a break on Monday after another unnerving AI-related shakeout late last week, with attention switching to Tuesday's big payrolls report and China's latest sweep of disappointing economic readouts. As Wall Street enters the last full trading week of the year, the mood surrounding the dominant artificial intelligence theme could hardly be shakier. Expensive tech stocks were hit with a one-two volley of disappointing news from Oracle and Broadcom last week, with shares in the two AI bellwethers sliding 18% and 11% respectively on Thursday and Friday - and dragging kingpin Nvidia down 3% on Friday, too. Nvidia regained some ground on Monday after it told Chinese clients it is evaluating adding production capacity for its powerful H200 AI chips as orders exceeded its current output level, according to Reuters' sources. And Micron is due to report earnings later in the week. But there appears to be considerable sector rotation afoot in the wider market as the year comes to a close. The tech pullback saw the Nasdaq lose 1.6% on Friday, but the Dow Jones Industrials index gained 1% and hit a record high during the day. U.S. index futures were higher across the board into Monday's open, with some relief coming from easier Treasury yields overnight. Even as Big Tech swooned on Friday, long-dated Treasuries fell too - with the 30-year bond yield hitting 3-month highs and the 2-30 yield curve gap also steepening to the widest since September. While yields fell back somewhat overnight, bonds are navigating numerous factors into yearend - not least the critical and long-delayed November payrolls report on Tuesday. But Treasuries also have to contend with a likely Bank of Japan interest rate rise on Friday, which will have important implications for Japanese and global bond markets, and a 20-year U.S. bond auction on Wednesday. And the latest political signals about the next Federal Reserve chair from next May were also being digested. Late Friday, President Donald Trump told the Wall Street Journal that he has narrowed his search for a new Fed chair to two people - former Fed Governor Kevin Warsh or National Economic Council Director Kevin Hassett. "The two Kevins are great," he said. The Polymarket betting site, which had made Hassett clear favorite prior to the interview, cut his chances of getting the Fed job to 51% from 75% prior to the Trump comments. Warsh's chances were lifted to 40% from 14%. The dollar index held broadly stable, despite another sharp loss against China's offshore yuan. The yuan hit its strongest level in more than a year even after yet another series of weakening and below-forecast updates on China's industry, retail and investmentfor November. What's more, house prices extended their slump and property sector nerves were jangled again by fears about a missed debt payment by state-backed developer China Vanke. With inevitable hopes of another government stimulus stirred by the weak data, China's stocks fell on Monday - but less than tech-hit markets in Tokyo and Seoul. European markets were firmer, with Britain's FTSE100 outperforming as the latest Bank of England interest rate cut is now widely expected on Thursday. The European Central Bank is also meeting - but will likely hold policy steady despite more hawkish messages from its board last week. Elsewhere, bitcoin had another rough weekend as it tumbled back below $90,000 - although it steadied somewhat first thing Monday. Gold and silver were back on the rise again, however. Today's Market Minute Chart of the day China's new home prices extended declines in November, with monthly prices in the red again and annual declines accelerating to 2.4%. As the property slump persisted, China Vanke made a renewed effort to muster bondholder backing for an onshore debt repayment due this week and avoid a default after the state-backed developer's plan was rejected. The latest debt crisis in the Chinese property sector, which has been reeling since 2021, comes as data showed slowing factory output and retail sales growth last month and highlighting an urgent need for new growth drivers. Today's events to watch (all times EDT) * New York Federal Reserve December manufacturing survey (08:30), NAHB Dec housing market indicator (10:00); Canada November consumer price inflation (1:30) * New York Federal Reserve President John Williams and Fed Board Governor Stephen Miran both speak Want to receive the Morning Bid in your inbox every weekday morning? Sign up for the newsletter here. You can find ROI on the Reuters website , opens new tab, and you can follow us on LinkedIn , opens new tab and X. , opens new tab And listen to thelatest episode of the Morning Bid daily podcast. Subscribe to hear Reuters journalists discuss the biggest news in markets and finance seven days a week. Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. https://www.reuters.com/business/finance/global-markets-view-usa-2025-12-15/

2025-12-15 11:27

Canadian farmers resort to a suite of measures to try to outrun climate change Record harvests of spring wheat and canola defy dire climate scenarios Technology and seed science offer hope for future crops - but at a steep price WAWANESA, Manitoba, Dec 15 (Reuters) - When farmer Simon Ellis first drove his combine into this year's crop, he expected "catastrophic failure," after a season of flooding followed by a long drought. But instead of shriveled kernels, plump seeds of wheat, oats and soybeans poured into his combine. Ellis, 38, a fourth-generation farmer in Wawanesa, Manitoba, credits investments in pricey systems including minimum and zero-till farming which help protect soil; tile drainage, an underground system to prevent flooding; slow-release fertilizer pellets which are more effective, and advice from a professional agronomist on weedkillers."We are constantly making little tweaks," he said. "That's how we're going to be able to keep fighting the changing climate." Sign up here. Across much of western Canada, farmers like Ellis have been turning out strikingly better crops despite hotter and drier conditions - far above what farmers in the region could have expected in better conditions years ago, according to Canadian government data, thanks in part to widespread embrace of climate adaptation strategies. While greater yields in Canada and elsewhere are depressing global prices for grains, they are keeping many farmers in business. RECORD HARVESTS DESPITE DROUGHT Adaptation practices - which tend to be costly and require cutting edge technologies - have enabled many farmers to ride out a drought that began in 2020. Earlier this month, the Canadian government announced record harvests of spring wheat and canola for 2025. And because most of the grains produced in Canada are shipped and consumed abroad, those gains have major implications for the rest of the world's ability to feed itself affordably. Australia, another large global grain exporter, has also reported rising crop yields despite drier conditions. This combination of methods and technology is not just helping Canadian growers keep up with climate change, but stay ahead of its ravages, according to interviews with 25 farmers, scientists and agriculture industry leaders, and a review of more than a dozen academic papers. Spring wheat, used to make high-quality bread, yielded 58.8 bushels per acre this year, according to the government data release. That's a gain of 77% from 30 years ago, based on a three-year average. Canola yields nearly doubled, reaching 44.7 bushels per acre, also based on a 1994-1996 average. While most climate science paints a bleak picture for global food supply, with a study , opens new tab in Nature this year forecasting up to 40% reduction in North America's wheat harvest by 2100, the agricultural experts Reuters interviewed said that with climate adaptation strategies the prairies can continue to produce bigger and bigger crops in the future. "Back in the day, 30, 35 bushels an acre (for wheat) would have been a bumper crop," said Rob Saik, a Canadian agronomist who has consulted with governments all over the world. "Now it's an abject failure." A NOTORIOUSLY DIFFICULT REGION Even before climate change brought more unpredictable and extreme weather, western Canada was a notoriously difficult region to farm. The central prairies, a land of green and golden short grasses and thin, scrubby brush, get only about half as much rainfall as Iowa, and have a much shorter growing season.Climate change has made it even harder. Environment and Climate Change Canada says the country is warming at double the global average and that extreme events have become more common. On the prairies, annual snowfall, a key source of spring moisture, has declined and summer extremes of rain and drought have increased, with rain often coming in enormous torrents, or not at all. "Extreme events, like floods, heatwaves, wildfires, and severe storms, are increasingly damaging to our economy, ecosystems and built environment," the federal department said in a 2024 report. INCREMENTAL GAINS, NOT MIRACLES Scientists and agronomists say Canada's gains don't come from a single, dramatic factor, but from steady, incremental progress with farming methods and inputs. Many seeds now come stacked with insect, disease and weed resistance, thanks to conventional breeding as well as genetic modification. Fertilizer application is designed to minimize disturbance to the soil surface by being placed at the same time as the seed goes in. Fungicides, weedkillers and nutrients allow crops to outcompete their natural enemies. Some of the strategies recall pre-industrial practices, such as intercropping, growing multiple crops at the same time. Experts also credit automation such as self-guiding tractors that apply fertilizer at different rates based on soil tests and satellite mapping. ONE FAMILY'S ADAPTATION EVOLUTION The Mowbray family ventured into adaptive practices four decades ago with tile drainage, laying a small stretch of perforated pipe designed to take the water down into the soil rather than spread it across the surface. Over the last 12 years, Scott Mowbray, 46, has expanded the drainage system to about 800 acres of his land. Meanwhile, the Mowbrays gradually took up minimum till. By 2010, the 2,000-acre farm was entirely no-till, leaving the soil unplowed and with stubble standing as a moisture trap and a barrier against the wind that otherwise carries the topsoil away. The innovations allow the Mowbrays to "pull off yields twice what we used to with half as much rain," Mowbray said, producing "incredible" volumes of spring wheat, peas and rye. TECHNOLOGY'S STEEP PRICE TAG Much of what has allowed Canadian farmers to deal with climate change involves expensive and complex equipment. A smart combine costs upwards of C$1 million ($722,125.94). A high-speed-data-enabled tractor and seeding drill cost around C$2 million ($1.44 million). Kip Eideberg, senior vice president of government and industry relations for the Association of Equipment Manufacturers, which represents John Deere , Case New Holland and other manufacturers, said precision systems have saved Canadian farmers 9% in herbicide and pesticides, 6% in fuel, and 4% in water use. That saves money for farmers operating on razor-thin margins, he said. Most large-scale farmers have access to such technology in their tractors, combines, sprayers and management computers, Terry Griffin, a Kansas State University agricultural economist, said. But an older generation of farmers often doesn't want to take on digital challenges, while younger farmers don't have the money for machines or agronomic advice. One obstacle to greater adoption is rural broadband access. Mowbray can't count on being able to run a constant stream of data from his big farm machines. He can't even call his farmhouse from his cellphone. His farm relies on two-way radios instead. "It's a simple thing but hugely important when you are in the field and might need a pick-up but can't get a call through to the house," he said. SEED SCIENCE - THE INVISIBLE FACTOR Another equally important factor for farmers' gains: breeding genetically superior crops that are hardier, drought-tolerant and produce bigger yields. "We're just starting down that path," said Rick Mitzel, CEO of farmer-and-industry-funded mustard seed development organization Mustard 21. The company is developing drought-tolerant plants as an alternative to canola. The varieties "come out of the ground quicker, develop roots quicker, get leafing faster," Mitzel told Reuters in an interview. The farmer-controlled South East Research Farm in Redvers, Saskatchewan has been testing crops such as camelina, which is most likely to be planted in Canada for sustainable aviation fuel, that could offer farmers better yields and more resilience. Executive director Lana Shaw doesn't think climate change will happen without losses to the Canadian farm community. Some farmers will choose to not adapt and will simply retire. Some will adapt and fail. And some farmers will adapt and thrive. "Under pressure," she said, "they can adapt very fast." ($1 = 1.3848 Canadian dollars) https://www.reuters.com/sustainability/cop/how-canadas-farmers-are-producing-record-crops-despite-droughts-floods-2025-12-15/

2025-12-15 11:20

LONDON, Dec 15 (Reuters) - Copper prices rose on Monday as some traders rolled forward positions ahead of a contract expiry this week, helping the market to set aside weak data and worries about the property sector in top consumer China for now. Benchmark three-month copper on the London Metal Exchange rose 1.4% to $11,670 per metric ton by 1058 GMT. Sign up here. Copper hit a record high of $11,952 on Friday on worries about tight supply and then saw a sell-off amid renewed fears of the AI bubble bursting. "Prices are set to remain choppy and volatile intraday into year-end and as we go into the first quarter," said Alastair Munro, senior metals strategist at Marex. Short or bearish positions on the LME were being cut or rolled over ahead of settlement on Wednesday, a trader said. About 39% of 165,875 tons of copper stored in LME-registered warehouses was marked as being prepared for delivery out. Meanwhile, daily inflows to the Comex copper stocks , already at a record high, continued due to higher prices on Comex. The U.S. excluded refined copper from the 50% import tariffs that came into force in August but kept it under review. "As long as there is a significant arbitrage between the LME and CME, I expect to see material still flow into the U.S. as traders capture those profits," said Samuel Basi, founder of Perfectly Hedged, a risk management and trading consultancy. In top metals consumer China, data showed that the country's factory output growth slowed to a 15-month low in November, while new home prices extended a decline. Adding to worries about China's property sector, developer Vanke made a renewed effort to muster bondholder backing for an onshore debt repayment. Among other LME metals, aluminium rose 0.4% to $2,880.50 a ton, zinc fell 0.1% to $3,121, lead lost 0.2% to $1,964, tin slid 1.1% to $40,915, while nickel shed 0.3% to $14,540. https://www.reuters.com/world/china/copper-prices-rise-short-covering-ignoring-weak-china-data-now-2025-12-15/