Latest news with #copperprices
The Guardian
09-07-2025
- Business
- The Guardian
Bank of England says UK banks can increase riskier mortgage lending
Update: Date: 2025-07-09T09:46:51.000Z Title: Copper prices in US hit record high after Trump announces 50% tariff Content: Rolling coverage of the latest economic and financial news, as BoE recommends banks can issue more high loan-to-income level loans Trump threatens to escalate trade war amid confusion over new tariff rates Graeme Wearden Wed 9 Jul 2025 11.46 CEST First published on Wed 9 Jul 2025 08.40 CEST From 11.41am CEST 11:41 Newsflash: The Bank of England is recommending that lending rules are relaxed so that banks and building societies can issue more mortgages at high loan-to-income levels. The BoE's Financial Policy Committee is recommending that individual lenders should be allowed to increase their share of lending at high LTIs to above the current limit of 15%. This could make it easier for borrowers to stretch themselves to afford a more expensive property. High loan-to-income loans are defined as those at a ratio above 4.5. Loans above this level are riskier, as borrowers could struggle to meet mortgage payments if their incomes fell, or if interest rates rose. Announcing the plan, the FPC says: The Committee noted its role in supporting the Government's priority to make home ownership more accessible and discussed the UK housing market and the role of regulatory mortgage policies. It wants the overall lending market to restrict high LTI loans to 15% of total demand, while allowing individual lenders to exceed it. The loan-to-income lending limit was introduced in 2014, as part of a package to cool the housing market. The FPC says: The Committee noted that the original policy intent of the LTI flow limit recommendation was to ensure the flow of new residential mortgages at high LTIs did not exceed 15% of total new mortgages in aggregate. The FPC judged that the aggregate 15 per cent limit continued to strike the right balance between providing appropriate protection from the increased risk to economic growth of large cuts to consumption associated with an over-indebted household sector, while providing sufficient capacity for otherwise creditworthy households to borrow at higher LTIs. As such, it has recommended the Prudential Regulation Authority (PRA) and the FCA amend implementation of its LTI flow limit to allow individual lenders to increase their share of lending at high LTIs while aiming to ensure the aggregate flow remained consistent with the limit of 15%. Updated at 11.46am CEST 11.19am CEST 11:19 Here's our news story about the jump in the US copper price: 11.15am CEST 11:15 The oil price has hit its highest level in two weeks, after a cargo ship attacked in the Red Sea sank. The Eternity C cargo ship sank in the Red Sea following an attack on Monday, blamed on Yemen-Houthi militants, which killed at least four crew members. Brent crude has risen by 0.6% today to $70.71 per barrel, the highest since 23 June. 11.03am CEST 11:03 Tom Bailey, head of research at HANetf, has warned that the threat of copper tariffs is leading to more of the metal becoming 'trapped' in warehouses, rather than being used. Bailey explains that this could distort prices for this vital metal: Copper sits at the centre of a looming supply-demand crunch. On one side is surging demand driven by grid upgrades, the rapid buildout of AI data centres, and the ongoing urbanisation of emerging markets. On the other is a supply base that is ageing, expensive, and increasingly unreliable. Ore grades are declining, discoveries are rare, and new mines take over a decade to come online. 'However, tariffs mean that a new dynamic is potentially emerging: trapped copper. With tariffs looming, US buyers have rushed to bring in copper ahead of schedule. But much of this metal is not being consumed. Instead, it is sitting in warehouses or locked in financing agreements. Due to high US premiums, it is uneconomical to export. In practice, this copper is being stranded inside the US, unavailable to the rest of the world. The result could be distorted physical markets, with those outside the US forced to compete for a shrinking pool of freely available copper. 10.55am CEST 10:55 German chancellor Friedrich Merz is optimistic that the European Union can agree a trade deal with the United States by the end of this month at the latest. Merz told lawmakers on Wednesday: 'Our goal is to reach a trade agreement with the United States of America as quickly as possible that links mutual trade between America and the European Union with the lowest possible customs duties.' Merz added that he is in close contact with US president Donald Trump and the European Commission. 10.41am CEST 10:41 Shares in some European pharma companies have dropped this morningn, after Donald Trump threatened to implement up to 200% tariffs on imported pharmaceuticals. The falls are modest, though, after Trump also said he would give drugmakers about one year 'to get their act together'. In London, AstraZeneca's shares have dipped by 0.77%. Switzerland's Novartis has lost 0.8%, while Belgium's UCB has dropped by 1.75%. Dan Coatsworth, investment analyst at AJ Bell, says: 'The pressure is now on for drug companies to expand US production facilities so they are effectively on the doorstep of American customers. Boosting the manufacturing sector and creating more jobs is central to Trump's tariff strategy, and the likes of AstraZeneca already have plans in motion to expand their US footprint. 10.21am CEST 10:21 Carsten Menke, Head of Next Generation Research at Julius Baer, says the copper tariffs will be inflationary domestically in the US and deflationary internationally – which matches the price action we've seen since last night. Menke also points out that the jump in US copper prices (13% yesterday) is less than the 50% tariff, implying traders expect some imports will be exempt, saying: President Trump announced the imposition of 50% import tariffs at a cabinet meeting yesterday. While US-traded futures jumped on the news, the price differential is well below the tariff level, pointing to expectations of exemptions for key suppliers or expectations of different demand dynamics. As already mentioned, we remain of the conviction that the tariffs will be inflationary domestically in the US and deflationary internationally. Generally, we do not see a supply-constrained market, but we want to wait for the dust to settle before reassessing our outlook. Updated at 10.28am CEST 10.07am CEST 10:07 Donald Trump's trade war has helped nudge Malaysia's central bank into cutting interest rates. The Monetary Policy Committee (MPC) of Bank Negara Malaysia has cut its policy rate by a quarter of one percentage point, to 2.75%, today. Malaysia's MPC cited 'tariff developments' (Trump announced a 30% tariff on imports from Malaysia this week), saying: The latest indicators point towards continued expansion in global growth, supported by sustained consumer spending and to some extent, front-loading activities. The global growth outlook would remain supported by positive labour market conditions, less restrictive monetary policy and fiscal stimulus. This outlook is weighed down by uncertainties surrounding tariff developments, as well as geopolitical tensions. Such uncertainties could also lead to greater volatility in the global financial markets and commodity prices. 9.40am CEST 09:40 The European Union is working closely with Donald Trump's administration to reach a trade deal, but Brussels is getting ready for all scenarios, European Commission President Ursula von der Leyen has told the European Parliament this morning. Von der Leyen said: 'We stick to our principles, we defend our interests, we continue to the work in good faith, and we get ready for all scenarios.' Yesterday, Trump said the EU were now being 'very nice to us', and indicated that the US was 'probably two days off' from sending Europe a letter on tariffs. 9.34am CEST 09:34 In the short term, copper prices are expected to remain volatile as markets adjust to the new tariff landscape, predicts Daniela Sabin Hathorn, senior market analyst at who explains: Factors contributing to this volatility include potential shifts in global supply chains, as exporters may redirect copper shipments to other markets, and the possibility of retaliatory measures from affected countries. Additionally, the U.S.'s limited domestic smelting capacity could influence price dynamics, as the country currently imports about half of its copper needs. Ultimately, the dramatic rally in copper was triggered by a policy shift that caught the market off guard. The U.S. government's move to impose steeper-than-expected tariffs has introduced a new layer of uncertainty into an already sensitive commodities landscape. With President Trump's trade strategy known for sudden pivots, traders would be wise to stay alert for further developments that could reshape the outlook once again. 9.21am CEST 09:21 Shares in advertising giant WPP have slumped by 13%, after it slashed its forecast for revenues and profits this year and blamed a 'challenging economic backdrop'. WPP warned that 'continued macro uncertainty' was weighing on client spend and leading to weaker net new business than originally anticipated. The company now expects its like-for-like revenue, excluding fees paid to suppliers, will fall by between 4.2% to 4.5% in the first half of this financial year. Mark Read, chief executive officer of WPP – whose departure was announced a month ago – says June was tougher than expected: 'Since the start of the year, we have faced a challenging trading environment with macro pressures intensifying and lower net new business. While we expected the second quarter to be similar to the first quarter, performance in June was worse than anticipated and we expect this pattern of trading in the first half to continue into the second half. 'As a result, we are updating our guidance for the full year and reducing our expectations on LFL revenue less pass-through costs growth to -3% to -5% (from flat to -2%) with a year-on-year decline in headline operating profit margin of 50 to 175 bps (vs. around flat previously). 9.12am CEST 09:12 Shares in copper producer Antofagasta have dropped by over 3% at the start of trading in London. Other miners are also weakening, with Glencore (-2.2%) and Anglo American (-1.8%) among the FTSE 100 fallers. 8.59am CEST 08:59 Analysts at investment bank Jefferies have warned that the new 50% tariff on copper will drive up costs in the US economy, saying: 'The US does not have nearly enough mine/smelter/refinery capacity to be self-sufficient in copper. 'As a result, import tariffs are likely to lead to continued significant price premiums in the US relative to other regions.' Tony Sycamore, market analyst at IG, questioned whether the Trump administration can easily make the US self-sufficient in copper: The aim of the new copper levy is to encourage domestic copper production, which is a challenging objective given the complexities of relocating a copper mine. Ipek Ozkardeskaya, senior analyst at Swissquote Bank, says the latest trade news from Trump was not reassuring: First, hopes of an extension to the current tariff pause—which ends today—were dashed after Donald Trump threatened that the August 1st deadline will be final, with no further extensions. Second, he slapped a 50% tariff on copper and announced that pharmaceuticals will face 200% tariffs within a year. The news sent COMEX copper futures to a record high, while copper prices on other platforms like India's MCX dropped, on expectations that surplus supply would shift to alternative markets. 8.41am CEST 08:41 Donald Trump is expected to send more letters to countries, informing them of new tariff rates or announcing trade deals, today. Last night on his Truth Social site, the US president wrote: We will be releasing a minimum of 7 Countries having to do with trade, tomorrow morning, with an additional number of Countries being released in the afternoon. Thank you for your attention to this matter! In a separate post, Trump also insisted that his new deadline of 1 August to reach trade deals would not slip, writing: As per letters sent to various countries yesterday, in addition to letters that will be sent today, tomorrow, and for the next short period of time, TARIFFS WILL START BEING PAID ON AUGUST 1, 2025. There has been no change to this date, and there will be no change. In other words, all money will be due and payable starting AUGUST 1, 2025 - No extensions will be granted. Thank you for your attention to this matter! Updated at 8.54am CEST 8.41am CEST 08:41 Copper prices outside the US have fallen, following Trump's threat of a 50% tariff on imports. On the London Metal Exchange, the metal slid as much as 2.4% at the open, before easing to change hands at $9,653 a ton, 1.4% lower, Bloomberg reports. 8.40am CEST 08:40 Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy. There's turmoil in the copper market after it became the latest frontline in Donald Trump's trade war The copper price has hit a record high in the US, and fallen in other markets, after Donald Trump announced he would impose a 50% tariff on imported copper. During a cabinet meeting at the White House, Trump revealed 'Today, we're doing copper,' adding: 'I believe the tariff on copper, we're going to make it 50%.' Copper is a critical element in electric vehicles, the power grid, military hardware and many consumer goods. It's known as 'Dr Copper' in the financial markets, because its price is a gauge of the health of the world economy. Investors' reaction to Trump's annoucement was swift – copper futures traded in the US jumped by over 10% to $5.682 per pound, closing at an all-time high. That's the biggest jump on records stretching to 1969, the Financial Times reported. More expensive domestic copper, and a 50% tariff on imports of the metal, will add to inflationary pressures on US businesses and consumers. Trump also said he would soon introduce levies on semiconductors and pharmaceuticals – two shoes which investors have been waiting to drop for months. Pharmaceutical imports are also 'going to be tariffed at a very, very high rate', the president said. 'Like 200%.' 'We're going to be announcing pharmaceuticals, chips and various couple of other things – you know, big ones,' he added, of the administration's tariff plans. 10:30am BST: Bank of England publishes its latest Financial Stability Report 11am BST: Bank of England press conference Noon BST: US weekly mortgaage application data 1.30pm BST: Parliament's business committee quiz Trade minister Douglas Alexander and Cabinet Office minister Pat McFadden on economic security Updated at 10.29am CEST
Wall Street Journal
09-07-2025
- Business
- Wall Street Journal
Heard on the Street Tuesday Recap: Copper Charges Up
U.S. copper prices vaulted to an all-time high. President Trump said Washington will slap imports of the metal with a 50% tax. Futures for the metal jumped 13%. That was the largest single-day price surge in records going back to 1968, according to Dow Jones Market Data. The U.S. will also soon impose tariffs of up to 200% on pharmaceuticals, Trump said. Companies will get up to a year and a half to reshore supply chains before they come into effect. Trump also said he would soon announce levies on semiconductors, but didn't specify a tariff level or date.
News.com.au
09-07-2025
- Business
- News.com.au
Lunch Wrap: ASX hits the brakes, rotating into defensive stocks
Copper prices surge as Trump threatens 50pc import tariff ASX slides into defensive stocks, down 0.31pc Utilities lead gains as oil touches two-week high overnight ASX slides as US markets trade sideways The ASX 200 is down about 0.31% as of lunchtime AEST, as investors digest the week's events. While we're well past the panicked selling after US President Trump's initial salvo of tariff threats kicked off, US markets crab walked to the end of the trading day last night, mostly moving lower. With less than a month until the August 1 deadline increases tariffs for dozens of countries, promised trade deals are showing few signs of eventuating. Copper prices surged almost 10% overnight as Trump revealed plans for a 50% tariff on the red metal, reviving the spectre of semiconductor and pharmaceutical import taxes in the same breath. Back home, markets and analysts alike were taken by surprise when the RBA left interest rates on hold yesterday despite an overwhelming expectation of a cut, citing continued global instability. That's taken the shine off any risky moves for traders today, which have rotated into defensive stocks like utilities and away from rate-exposed real estate stocks. At the big end of town, Woodside Energy (ASX:WDS) has gained 1%, responding to a two-week high in oil prices, which reached US$70.15 a barrel of Brent last night before retreating marginally in trade today. Pilbara Minerals (ASX:PLS) has also added 2.2%, while Evolution Mining (ASX:EVN) moved in the opposite direction, shedding 8.7%. Telix Pharmaceuticals (ASX:TLX) is almost 6% higher at present, having secured a permanent healthcare system code from the US Centers for Medicare & Medicaid Services for its PSMA PET imaging agent, Gozellix, as it brings its new imaging agent to market. ASX SMALL CAP WINNERS Security Description Last % Volume MktCap REY REY Resources Ltd 0.028 155% 333210 $2,327,170 PFE Pantera Lithium 0.027 125% 77269353 $5,685,404 VFX Visionflex Group Ltd 0.002 100% 9506255 $3,367,860 AYM Australia United Min 0.003 50% 1026314 $3,685,155 PEC Perpetual Res Ltd 0.016 45% 18884353 $9,605,510 GTR Gti Energy Ltd 0.004 33% 18293113 $8,996,849 RGL Riversgold 0.004 33% 8867833 $5,051,138 AMS Atomos 0.005 25% 1705687 $4,860,074 AUK Aumake Limited 0.0025 25% 7516024 $6,046,718 BIT Biotron Limited 0.0025 25% 16569 $2,654,492 CTN Catalina Resources 0.005 25% 250000 $9,704,076 GGE Grand Gulf Energy 0.0025 25% 1000067 $5,640,850 JAV Javelin Minerals Ltd 0.0025 25% 6785014 $12,504,450 MRD Mount Ridley Mines 0.0025 25% 3000 $1,556,978 QXR Qx Resources Limited 0.005 25% 383873 $5,241,315 D3E D3 Energy Limited 0.22 22% 844416 $14,305,501 CAN Cann Group Ltd 0.018 20% 1365090 $9,542,642 RMI Resource Mining Corp 0.018 20% 44698 $11,016,800 TSL Titanium Sands Ltd 0.006 20% 1503 $11,723,736 ZEU Zeus Resources Ltd 0.02 18% 15817818 $12,196,423 ILA Island Pharma 0.17 17% 2262848 $34,233,490 AS2 Askarimetalslimited 0.007 17% 259586 $2,425,024 SHP South Harz Potash 0.0035 17% 40000 $3,849,186 HCF Hghighconviction 0.03 15% 199251 $504,568 VSR Voltaic Strategic 0.0135 13% 4400000 $6,810,603 In the news… Pantera Lithium (ASX:PFE) is about to be $40m richer in cash and stock consideration, after offloading its Smackover lithium project in the US to Energy Exploration Technologies Inc. PFE will walk away with $6m in cash and the rest in EET shares, maintaining exposure to the recovering lithium market through EnergyX's three lithium projects in the Americas while freeing up operational capacity and capital for its own critical mineral ambitions. Perpetual Resources (ASX:PEC) has hit a 200-metre-wide LCT pegmatite in maiden drilling at the Igrejinha project in Brazil's Lithium Valley. PEC reckons it's a great result, as the new mineralisation sits below an outcrop which produced rock chip samples of up to 7.5% lithium. The company has opted to fast-track assays, with results expected in batches through July and August. Catalina Resources (ASX:CTN) is at the other end of the drill bit, preparing to mobilise rigs to gold targets at the Laverton project. CTN is chasing up air core drilling results of 28m at 1.09 g/t gold from 57m of depth using a reverse circulation rig to penetrate deeper into the host rock, exploring for extensions along strike and at depth. The company is also looking for rare earth element mineralisation, having struck a very-high grade zone of 4m at 13,406 parts per million total rare earth oxides within a larger intersection of 9m at 7565ppm TREO from 47m of depth. Island Pharmaceuticals (ASX:ILA) has expanded its therapeutic portfolio with the addition of the Galidesivir program, a broad-acting antiviral with a strong development history. The US government has already sunk $US70m into developing the therapy, which is currently being investigated as a treatment for Marburg virus, a disease with a fatality ratio of up to 88%. ASX SMALL CAP LAGGARDS Code Name Price % Change Volume Market Cap TX3DA Trinex Minerals Ltd 0.07 -45% 11487 $2,212,652 SKN Skin Elements Ltd 0.002 -33% 250000 $3,225,642 AQC Auspaccoal Ltd 0.019 -27% 6575412 $18,212,157 AQX Alice Queen Ltd 0.003 -25% 668783 $4,998,560 LOC Locatetechnologies 0.12 -23% 724350 $36,293,910 ROG Red Sky Energy. 0.004 -20% 1757007 $27,111,136 BMM Bayanminingandmin 0.046 -19% 2617413 $5,868,458 RNT Limited 0.026 -19% 138248 $27,294,098 OKJ Oakajee Corp Ltd 0.036 -18% 200000 $4,023,625 BLU Blue Energy Limited 0.005 -17% 1228 $11,105,842 PRM Prominence Energy 0.0025 -17% 22473 $1,459,411 SPX Spenda Limited 0.005 -17% 1673107 $27,691,293 SIX Sprintex Ltd 0.042 -16% 144123 $31,432,295 TNY Tinybeans Group Ltd 0.11 -15% 200010 $19,228,357 AON Apollo Minerals Ltd 0.006 -14% 829443 $6,499,198 KGD Kula Gold Limited 0.006 -14% 825294 $6,448,776 LU7 Lithium Universe Ltd 0.006 -14% 193319 $6,551,857 EVR Ev Resources Ltd 0.0095 -14% 8328762 $24,502,537 CDE Codeifai Limited 0.026 -13% 8490830 $14,069,660 PNT Panthermetalsltd 0.013 -13% 25630839 $4,513,568 WNX Wellnex Life Ltd 0.27 -13% 7509 $21,009,174 DAL Dalaroometalsltd 0.027 -13% 368132 $7,965,510 ICR Intelicare Holdings 0.007 -13% 550000 $3,889,505 WEC White Energy Company 0.035 -13% 1000 $12,464,796 VIG Victor Group Hldgs 0.065 -12% 7712 $48,264,774 IN CASE YOU MISSED IT Break it Down: QMines (ASX:QML) has upgraded the Mount Mackenzie gold and silver resource base and further raised the bar on its production aspirations in Central Queensland. DigitalX (ASX:DCC) has secured $20.7 million in strategic investment from a cohort of global digital asset leaders. Locksley Resources (ASX:LKY/OTCQB:LKYRF) is preparing to test high-grade antimony zones at the Desert Antimony Mine after receiving the green light from the Bureau of Land Management. DY6 Metals (ASX:DY6) is dramatically expanding the scale of its rutile holdings in Cameroon and investors are champing at the bit to grab a slice of the action. StockTake: HyTerra (ASX:HYT) is preparing to spud the McCoy-1 well at its Nemaha helium project in Kansas, USA. Island Pharmaceuticals (ASX: ILA) has signed an asset purchase agreement to buy the Galidesivir antiviral program targeting high-priority threat viruses. LAST ORDERS Vertex Minerals (ASX:VTX) is on track to begin churning out high-grade gold from the underground portion of the Reward gold mine, set to begin formally mining the 225k oz at 16.7 g/t resource within weeks. At Stockhead, we tell it like it is. While Vertex Minerals, Perpetual Resources and Island Pharmaceuticals are Stockhead advertisers, they did not sponsor this article.
Wall Street Journal
08-07-2025
- Business
- Wall Street Journal
Podcast: Indexes Finish Mixed as President Holds Firm on Trade Deadline
U.S. copper prices soared to a new all-time high after President Trump said Washington would slap imports of the metal with a 50% tariff. Plus, solar stocks fall on news that the White House will enforce the halt to clean-electricity tax credits faster than expected. And, Amazon is expecting record sales as its Prime Day event begins. 🎧 Listen: Charlotte Gartenberg hosts the Minute Briefing podcast.
Yahoo
27-06-2025
- Business
- Yahoo
Strength Seen in Ero Copper (ERO): Can Its 9.0% Jump Turn into More Strength?
Ero Copper Corp. (ERO) shares ended the last trading session 9% higher at $17.25. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 10.8% gain over the past four weeks. Ero Copper has gained in tandem with the recent gains in copper prices. Copper futures climbed above $5 per pound as traders accelerated shipments toward the United States to get ahead of potential tariffs. Since the Trump administration launched a probe into copper imports in February, around 400 kilotons have been rushed into the United States, tightening global supply. Sentiment was further buoyed by easing Middle East tensions, reduced fears of retaliatory tariffs, anticipated Chinese stimulus, and a more dovish Fed, factors that collectively strengthen the global demand outlook. This company is expected to post quarterly earnings of $0.43 per share in its upcoming report, which represents a year-over-year change of +138.9%. Revenues are expected to be $195 million, up 66.5% from the year-ago quarter. Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements. For Ero Copper, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ERO going forward to see if this recent jump can turn into more strength down the road. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Ero Copper belongs to the Zacks Mining - Non Ferrous industry. Another stock from the same industry, Centrus Energy Corp. (LEU), closed the last trading session 3.4% lower at $174.96. Over the past month, LEU has returned 41.8%. For Centrus Energy, the consensus EPS estimate for the upcoming report has changed -21.3% over the past month to $0.67. This represents a change of -64.6% from what the company reported a year ago. Centrus Energy currently has a Zacks Rank of #3 (Hold). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ero Copper Corp. (ERO) : Free Stock Analysis Report Centrus Energy Corp. (LEU) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
