Connect with us

Markets

G20 Calls for Stepped-up Trade Dialogue; no Agreement on Path Forward

Published

on

  • G20 Calls for Stepped-up Trade Dialogue; no Agreement on Path Forward

Global finance leaders called on Sunday for stepped-up dialogue to prevent trade and geopolitical tensions from hurting growth, but ended a two-day G20 meeting with little consensus on how to resolve multiple disputes over U.S. tariff actions.

The finance ministers and central bank governors from the world’s 20 largest economies warned that growth, while still strong, was becoming less synchronized and downside risks over the short- and medium-term had increased.

“These include rising financial vulnerabilities, heightened trade and geopolitical tensions, global imbalances, inequality and structurally weak growth, particularly in some advanced economies,” the G20 finance officials said in a communique.

“We … recognize the need to step up dialogue and actions to mitigate risks and enhance confidence,” the communique said.

This marked a strengthening of language compared to their previous statement issued in March, in which they simply “recognize the need for further dialogue.”

“The latest language suggests a great deal of urgency about resolving these issues,” Australia Treasurer Scott Morrison told Reuters in an interview, adding that the ministers had made it clear in the discussion that they were concerned about “tit-for-tat measures” and that open trade was the goal.

“The language previously had been a bit ambiguous about that, a bit sheepish,” Morrison added.

The weekend talks in Buenos Aires came at a time of escalating rhetoric in the trade conflict between the United States and China, the world’s largest economies, which have so far slapped tariffs on $34 billion worth of each other’s goods.

U.S. President Donald Trump raised the stakes on Friday with a threat to impose tariffs on all $500 billion of Chinese exports to the United States unless Beijing agrees to major structural changes to its technology transfer, industrial subsidy and joint venture policies.

U.S. Treasury Secretary Steven Mnuchin told a news conference on Sunday that he had had no substantive discussions on trade with China’s finance minister, Liu Kun, at the G20 gathering, engaging mainly in “chit-chat.”

“Any time they want to sit down and negotiate meaningful changes, I and our team are available,” Mnuchin added.

The Chinese delegation did not speak to media at the G20 meeting.

G7 TRADE OVERTURES

Mnuchin focused instead on other trade relationships at the talks, including those with the European Union, Canada, Mexico and Japan.

He said G7 allies were taking seriously his calls to eliminate tariffs, non-tariff barriers and subsidies among the group, and the Trump administration would pursue such ideas in trade talks next week with European Commission President Jean-Claude Juncker in Washington.

Canadian Finance Minister Bill Morneau called the dropping of barriers a “great idea” and an “aspirational target,” but said it would be challenging to execute because of historical economic differences.

Before any trade talks with the EU could begin, French Finance Minister Bruno Le Maire insisted that Washington first would need to drop its tariffs on steel and aluminum and stand down on a threat to impose auto tariffs.

European Commissioner for Economic and Financial Affairs Pierre Moscovici told reporters that the meeting was not tense, but produced little movement from entrenched positions on trade.

“We were in mutual listening mode and I hope that this is the beginning of something,” Moscovici said. “But still the positions are not similar.”

Finance ministers for both Mexico and Canada said they saw optimism from Washington that an agreement to modernize the trilateral North American Free Trade Agreement (NAFTA) could be reached in coming months after talks stalled.

ALLIES ANGERED

Trump has angered allies by imposing import tariffs of 25 percent on steel and 10 percent on aluminum, sparking retaliatory tariffs from the EU and Canada on a range of U.S. products.

Trump, who frequently criticizes Europe’s 10 percent car tariffs, is also studying adding a 25 percent levy on auto imports, which would hit both Europe and Japan hard.

Mnuchin said he did not feel isolated at the G20, holding numerous bilateral meetings with officials, and arguing that Trump’s trade stance was not based on protectionism, but on trying to make trade fairer.

“We very much support the idea that trade is important to the global economy, but it’s got to be on fair and reciprocal terms,” he said.

Hubert Fuchs, European Council representative to the G20, said he welcomed Mnuchin’s candid approach, but said the United States “understands something different under fair and free trade.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Crude Oil

Oil Prices Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

Published

on

Crude Oil

Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

Continue Reading

Energy

Nigeria Targets $5bn Investments in Oil and Gas Sector, Says Government

Published

on

Crude Oil - Investors King

Nigeria is setting its sights on attracting $5 billion worth of investments in its oil and gas sector, according to statements made by government officials during an oil and gas sector retreat in Abuja.

During the retreat organized by the Federal Ministry of Petroleum Resources, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained the importance of ramping up crude oil production and creating an environment conducive to attracting investments.

He highlighted the need to work closely with agencies like the Nigerian National Petroleum Company Limited (NNPCL) to achieve these goals.

Lokpobiri acknowledged the challenges posed by issues such as insecurity and pipeline vandalism but expressed confidence in the government’s ability to tackle them effectively.

He stressed the necessity of a globally competitive regulatory framework to encourage investment in the sector.

The minister’s remarks were echoed by Mele Kyari, the Group Chief Executive Officer of NNPCL, who spoke at the 2024 Strategic Women in Energy, Oil, and Gas Leadership Summit.

Kyari stressed the critical role of energy in driving economic growth and development and explained that Nigeria still faces challenges in providing stable electricity to its citizens.

Kyari outlined NNPCL’s vision for the future, which includes increasing crude oil production, expanding refining capacity, and growing the company’s retail network.

He highlighted the importance of leveraging Nigeria’s vast gas resources and optimizing dividend payouts to shareholders.

Overall, the government’s commitment to attracting $5 billion in investments reflects its determination to revitalize the oil and gas sector and drive economic growth in Nigeria.

Continue Reading

Commodities

Palm Oil Rebounds on Upbeat Malaysian Exports Amid Indonesian Supply Concerns

Published

on

Palm Oil - Investors King

Palm oil prices rebounded from a two-day decline on reports that Malaysian exports will be robust this month despite concerns over potential supply disruptions from Indonesia, the world’s largest palm oil exporter.

The market saw a significant surge as Malaysian export figures for the current month painted a promising picture.

Senior trader David Ng from IcebergX Sdn. in Kuala Lumpur attributed the morning’s gains to Malaysia’s strong export performance, with shipments climbing by a notable 14% during March 1-25 compared to the previous month.

Increased demand from key regions like Africa, India, and the Middle East contributed to this impressive growth, as reported by Intertek Testing Services.

However, amidst this positivity, investors are closely monitoring developments in Indonesia. The Indonesian government’s contemplation of revising its domestic market obligation policy, potentially linking it to production rather than exports, has stirred market concerns.

Edy Priyono, a deputy at the presidential staff office in Jakarta, indicated that this proposed shift aims to mitigate vulnerability to fluctuations in export demand.

Yet, it could potentially constrain supply availability from Indonesia in the future to stabilize domestic prices.

This uncertainty surrounding Indonesian policies has added a layer of complexity to palm oil market dynamics, prompting investors to react cautiously despite Malaysia’s promising export performance.

The prospect of Indonesian supply disruptions underscores the delicacy of global palm oil supply chains and their susceptibility to geopolitical and regulatory factors.

As the market navigates these developments, stakeholders remain attentive to both export data from Malaysia and policy shifts in Indonesia, recognizing their significant impact on palm oil prices and market stability.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending