Oaktree Sees 'Good Opportunities' in Credit Markets Amid Volatility
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
29 minutes ago
- Yahoo
Trump scores another big trade deal after securing promise of massive investment, but China will be less willing to cave, analyst says
President Donald Trump said the EU will invest $600 billion in the U.S., buy $750 billion of American energy products, and purchase 'vast amounts' of weapons as part of a trade deal that sets a 15% tariff. It comes a week after a similar agreement with Japan, which pledged to invest $550 billion in key U.S. industrial sectors. Now that trade deals have been clinched with the European Union and Japan, the U.S. looks to focus on China as the world's two biggest economies prepare for high-stakes talks. Negotiations between Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are scheduled to start on Monday in Stockholm. That comes as a trade truce between the two sides is due to end Aug. 12, though they are reportedly going to extend the deadline by 90 days. U.S. deals with Japan and the EU could offer a blueprint for China. The EU will invest $600 billion in the U.S., buy $750 billion of American energy products and purchase 'vast amounts' of weapons, according to Trump. It comes a week after a similar agreement with Japan, which vowed to invest $550 billion in key U.S. industrial sectors. Both the EU and Japan will face a 15% tariff on most of their exports to the U.S. Bessent highlighted the $550 billion pledge as a key reason the U.S. and Japan were able to settle on a levy that was lower than the 25% rate Trump had threatened earlier. 'They got the 15% rate because they were willing to provide this innovative financing mechanism,' he told Bloomberg TV on Wednesday, when asked if other countries could get a similar rate. Similarly, Trump had hinted that the EU would have to 'buy down' the threatened tariff rate of 30% and pointed to the Japan deal. But talks with Beijing may be tougher. 'When Japan broke down and made a deal the EU had little choice,' Jamie Cox, managing partner for Harris Financial Group, said in a note on Sunday. 'The biggest piece in the trade deal puzzle still remains, and the Chinese are unlikely to be as willing to fold.' Without a lasting agreement between the U.S. and China, tariffs could soar back to prohibitively high levels that would effectively cut off trade. In April, Trump had set tariffs on China at 145%, prompting Beijing to retaliate with its own levy of 125%. Meanwhile, the U.S. has reached deals elsewhere in Asia, with the Philippines and Indonesia facing 19% tariffs while Vietnam has a 20% duty. That's as Trump seeks to discourage the trans-shipment of Chinese goods via other countries in the region. Any pledges of investment in the U.S. also come as Trump's tariffs face legal challenges, with a court hearing scheduled Thursday on whether the president has authority under the International Emergency Economic Powers Act to impose wide-ranging duties. On Sunday, European Commission President Ursula von der Leyen confirmed that the EU's $750 billion in U.S. energy purchases would come over the next three years, meaning they will happen while Trump is in office. But U.S. tariffs could be invalidated before any money is spent, and Wall Street is skeptical that Japan will fully deliver on a target that isn't a binding commitment. Analysts at Piper Sandler have concluded that Trump's tariffs are illegal and noted that the $550 billion Japanese investment comes with few concrete details. 'Our trading partners and major multinationals know Trump's tariffs are on shaky legal ground,' they wrote. 'Therefore, we find it hard to believe many of them are going to make massive investments in the US they would not have otherwise made in response to tariffs that may not last.' This story was originally featured on Sign in to access your portfolio
Yahoo
29 minutes ago
- Yahoo
China Ditches U.S. LNG as Russian Pipelines and Domestic Output Surge
Over the past couple of years, China has become the world's largest importer of Liquefied Natural Gas (LNG), surpassing Japan as the top buyer of super-chilled gas since 2021. China's surging LNG imports have been shaping Asian energy flows, with the country accounting for more than 40% of the continent's total LNG import growth. However, China's dominance in LNG markets now appears in jeopardy, and we are seeing a prolonged decline in imports. According to ship-tracking data by Kpler via Bloomberg, China's LNG imports are estimated to have clocked in at 5 million metric tons in June 2025, good for a hefty 12% year-on-year decline, marking the eighth straight month of declines. In the first four months of the year, China's LNG imports slumped to 20 million tons, a sharp fall from 29 million tons from last year's comparable period. Full-year imports for the current year are now expected to fall 6–11% to 76.65 million metric tons. This trend appears to defy earlier projections for China's LNG demand to continue growing through 2035. This, coupled with ongoing shifts in the country's oil import dynamics, signals major changes in global energy flows. In 2023, China averaged 9.5 billion cubic feet per day in LNG imports, with Australia supplying 34% of total imports; Qatar 23%, Russia 11% and Malaysia 10%. There are several factors driving this unexpected trend. First off, China has seen a significant increase in pipeline imports from Russia and Central Asia, as well as a 6% increase in domestic gas production, both lowering LNG demand. Pipeline gas accounted for 41% of China's 16.0 Bcf/d natural gas imports in 2023, with Russia (via the Power of Siberia 1 pipeline), Turkmenistan and Myanmar supplying the is actively increasing its pipeline gas exports to China as part of its strategy to reorient its energy exports away from Europe and towards Asia, with China as the leading target. Specifically, the Power of Siberia 1 pipeline is expected to reach its full capacity of 38 billion cubic meters (bcm) by 2025, and a new pipeline, Power of Siberia 2, is planned to further increase exports to China by an additional 50 bcm per year. Russia is also exploring other potential pipeline routes to China, including one that would transit through Kazakhstan. This could further expand export capacity and provide alternative routes to diversify supply. Second, trade tensions between Washington and Beijing have forced China to halt U.S. LNG imports since March 2025 after Trump slapped a punitive 125% tariff on its key trading partner. Consequently, China redirected purchases to Asian suppliers like Qatar and Indonesia. Third, weak industrial demand due to slowing growth by China's industrial and chemical sectors has taken a toll on gas demand. These pivotal sectors are experiencing a slowdown due to a combination of factors including a broader economic slowdown, a struggling real estate market, weaker global demand for exports, and reduced foreign investments. To exacerbate matters, China's GDP growth is projected to slow down in the coming years despite showing resilience against U.S. tariffs, with forecasts suggesting growth below the official target and a further easing in 2026. The Organisation for Economic Co-operation and Development (OECD) has projected that China's economic growth will moderate from 5.0% in 2024 to 4.7% in 2025 and 4.3% in 2026. Finally, a milder winter has lowered demand for residential heating particularly in northern China. China's falling LNG imports are having ripple effects across global energy markets. Weakening demand is freeing up LNG volumes, easing supply pressure to other Asian countries including Japan and India as well as Europe. Falling Chinese demand is also depressing Asian spot LNG prices, with prices dropping to $11/MMbtu in May 2025 from a February peak of $16.50/MMBtu. Chinese buyers tend to turn to pipeline gas and domestic production whenever Asian gas prices exceed $10/MMBtu. Finally, the halt of U.S. LNG exports to China threatens long-term contracts worth 20 million tons per year with U.S. suppliers. Chinese LNG buyers are now reselling U.S. cargoes to Europe and also seeking new deals with Asia-Pacific and Middle Eastern suppliers, undermining U.S. export growth. Meanwhile, China's pivotal crude oil sector is facing serious headwinds, too. Last year, China experienced a decline in transportation fuel demand, marking a significant shift away from the historical trend of increasing demand. China's consumption of gasoline, jet fuel and diesel in 2024 was ~8.1 million barrels per day, 2.5% below 2021 levels and just above 2019 levels. This decline was primarily driven by a combination of factors including a shift towards electric vehicles, a slowdown in the construction sector, and a weakening in consumer spending. Indeed, the International Energy Agency (IEA) has predicted that combustion uses of petroleum fuel in China has already plateaued. By Alex Kimani for More Top Reads From this article on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Galan Lithium Limited: Incentive Regime for HMW Project in Argentina
PERTH, Australia, July 28, 2025 /PRNewswire/ -- Galan Lithium Limited (ASX: GLN) ("Galan" or "the Company") is pleased to advise that the Comite Evaluador de Proyectos RIGI, responsible for awarding the Argentine Government's Régimen de Incentivo para Grandes Inversiones (the incentive regime for large-scale investments referred to as the "RIGI"), has approved the RIGI for Galan's flagship Hombre Muerto West ("HMW") Project in Catamarca Province, Argentina. Galan now expects to receive official approvals relating to the RIGI in due course. The RIGI is a landmark investment framework introduced as part of the Government of Argentina's new economic reform agenda, aimed at encouraging large-scale investment in key sectors, including mining. The RIGI provides long-term certainty on tax and foreign exchange regulations, as well as streamlined permitting, both critical enablers for project financing, efficient construction and operation of the HMW Project over its multi-decade life. HMW will be only the sixth project to receive the RIGI approval in Argentina and the second in the mining sector, following the recent award to Rio Tinto's Rincon project. Managing Director, Juan Pablo ("JP") Vargas de la Vega, commented: "This is a major milestone for Galan that will further strengthen HMW's global competitive position as a future low-cost producer. The RIGI will provide a strategic advantage to Galan and will unlock meaningful long-term value for the people of Catamarca and our shareholders. The RIGI delivers fiscal stability and operational certainty over the long-term, key requirements for major project financing and execution. It also signals strong alignment between Galan and the Argentine government's broader vision of accelerating lithium production and economic development. Galan sincerely thanks the Government of Argentina and the Province of Catamarca for endorsing HMW for official approvals under the RIGI which further substantiates HMW as a significant project in Argentina and globally." Key Benefits of the RIGI for the HMW project: Reduced Corporate Income Tax: a significant 10% reduction in corporate income tax rate to 25%. Fiscal Stability: Certainty around income tax, royalties, and export duties for 30 years. Foreign Exchange: Preferential access to currency markets for imports and dividend repatriation. Customs & Tariff Exemptions: Reduced barriers for importing critical equipment and materials. Accelerated Depreciation: Improved cash flow through tax-effective project development. About Hombre Muerto West HMW is a multi-decade, lithium brine project in Argentina with compelling economics. Phase 1 provides for a 4ktpa LCE operation, producing a 6% LiCl concentrate product over a projected 40-year life (1). Galan expects first Phase 1 production in H1 2026 and has secured an offtake agreement for 45,000 t LCE of production. Beyond Phase 1, the Company will undertake a phased scaling approach, eventually ramping up to 60ktpa at the conclusion of Phase 4. This approach mitigates funding and execution risk and will allow for continuous process improvement. With a world class resource and a cost profile within the first quartile globally, HMW is a clear demonstration of the benefits of a high-quality lithium brine asset. These benefits are allowing Galan to progress through development and into production with a lower capital intensity and lower risk profile when compared to hard rock lithium (spodumene) projects. As importantly, lithium chloride is a key component for lithium iron phosphate (LFP) batteries, which have become the dominant battery product globally. With the ability to be cost effectively converted into a lithium dihydrogen phosphate or lithium carbonate, lithium chloride, as will be produced at HMW, is an ideal source for LFP batteries. The Galan Board has authorised this release. Please refer to the Mineral Resource Statement for Galan's Total Resources of 9.5Mt LCE. (1) Please refer to the announcement dated 3 July 2023 (ASX: Phase 1 of Hombre Muerto West (DFS Delivers Compelling Economic Results for Accelerated Production)). The Company confirms that all material assumptions underpinning the production target continue to apply and have not materially changed. For further information contact: COMPANY MEDIA Juan Pablo ("JP") Vargas de la Vega Matt Worner Managing Director VECTOR Advisors jp@ mworner@ + 61 8 9214 2150 +61 429 522 924 About Galan Galan Lithium Limited (ASX: GLN) is an ASX-listed lithium exploration and development business. Galan's flagship assets comprise two world-class lithium brine projects, HMW and Candelas, located on the Hombre Muerto Salar in Argentina, within South America's 'lithium triangle'. Hombre Muerto is proven to host lithium brine deposition of the highest grade and lowest impurity levels within Argentina. It is home to the established El Fenix lithium operation, Sal de Vida (both projects are owned by Rio Tinto following its successful acquisition of Arcadium Lithium). Galan also has exploration licences at Greenbushes South in Western Australia, just south of the Tier 1 Greenbushes Lithium Mine. View original content: SOURCE Galan Lithium Limited Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
