
China launches WTO dispute with Canada on steel and aluminium surtaxes
The disputed measures include a surtax in the form of tariff rate quotas on certain steel imports originating from Canada's non-free trade agreement partners, including China, a notice from the WTO said.
China is also challenging a surtax on certain goods that contain steel or aluminium originating from China, it added.
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Reuters
9 minutes ago
- Reuters
Chile's SQM expects lithium price boost in third quarter
SANTIAGO, Aug 20 (Reuters) - Chilean lithium producer SQM ( opens new tab expects prices and sales volumes to rise in the third quarter, executives said on Wednesday, after the miner missed estimates for second-quarter net profit. The world's second-largest lithium producer reported a 59% decline in quarterly profit, with lithium prices down around a third year-on-year. Net profit of $88.4 million missed analysts' estimates of $143.01 million, according to data compiled by LSEG, while revenue of $1.04 billion was broadly in line with the estimate of $1.064 billion. Chief Executive Ricardo Ramos in a statement said lithium prices had in some cases hit the lower limits of sales contracts, affecting agreed volumes. Executives on a call with analysts declined to give further details about how the company had adjusted contracts, citing confidentiality. They predicted an uptick in sales volumes of at least 10% in the third quarter from the second quarter, and pointed to potential supply reductions in China as a good sign for prices. "We expect that with the recent price recovery in China, our sales price in Q3 should be higher than in Q2," said Felipe Smith, SQM's commercial vice president for lithium. He noted that Asia prices outside of China have also been strengthening, although more slowly. Global prices for lithium, a critical component of electric vehicle batteries, have plunged nearly 90% from a late-2022 peak, leading producers to slash workforces and pull back on plans. SQM began laying off 5% of its Chilean workforce in June, and Moody's last month lowered the miner's outlook to "negative" due to lithium revenue uncertainty. SQM also makes fertilizers and industrial chemicals on Chile's Atacama salt flat, one of the highest concentration lithium deposits in the world. The company said it is on track to finalize a partnership with Chilean state-run copper miner Codelco ( as soon as September or October. The deal still requires approval from regulators in China, after other countries signed off. SQM also said it expects approval for a major revamp of its lithium operations in the first half of 2030 as it works to submit an environmental impact report to authorities next year.


Reuters
20 minutes ago
- Reuters
Consumer stocks rally drives UK's FTSE 100 to record close
Aug 20 (Reuters) - Britain's FTSE 100 clinched a fresh record close on Wednesday with consumer-related stocks leading the gains, while investors digested an inflation report that diminished hopes for a near-term Bank of England rate cut. The blue-chip index FTSE 100 (.FTSE), opens new tab closed 1% higher, breaching the intraday record levels it touched on Friday. Meanwhile, the more domestically focused FTSE midcap index (.FTMC), opens new tab posted a modest rise of 0.2%. Both the benchmark indexes erased earlier losses made in the session. Official data revealed the UK's consumer price inflation hit its highest in 18 months in July when it increased to 3.8% in the fastest annual rise for a Group of Seven economy and approaching the BoE's forecast of a 4% peak in September. The data further tempered the already low expectations of a rate cut by the British central bank, with traders now betting on a quarter-point reduction in March next year. Earlier this month, markets had anticipated a cut before the end of 2025. The inflation report's interest rate implications led to a 0.2% dip in homebuilders (.FTNMX402020), opens new tab on concerns about mortgage affordability. The aerospace and defence (.FTNMX502010), opens new tab index came under pressure for a second consecutive day, falling 1.7% after marking its largest single-day decline since early April on Tuesday. Consumer stocks (.FTNMX452010), opens new tab drove the gains on the FTSE 100, with Unilever (ULVR.L), opens new tab, Reckitt (RKT.L), opens new tab and Tesco (TSCO.L), opens new tab rising between 1.2% and 3.2%. The healthcare sector (.FTNMX201030), opens new tab was up 1.8%. Financials added to the advances, with banks (.FTNMX301010), opens new tab and non-life insurers (.FTNMX303020), opens new tab advancing 1.4% and 1.7%, respectively. Utilities (.FTUB6510), opens new tab saw a 1.9% increase, with water provider United Utilities (UU.L), opens new tab gaining 3.5% after Barclays upgraded its stock rating to "Overweight" from "Equal Weight." Among individual movers, Ithaca Energy (ITH.L), opens new tab jumped 10.4% to the highest in nearly three years after the oil and gas company lifted its 2025 production forecast. Medical equipment maker Convatec (CTEC.L), opens new tab rose 5.6% and posted its best day since March this year, after it announced $300 million share buyback programme.


Reuters
21 minutes ago
- Reuters
Europe's STOXX 600 closes higher but gains limited by tech, defence
Aug 20 (Reuters) - Europe's STOXX 600 closed higher on Wednesday boosted by consumer and healthcare stocks, while declines in tech and defence stocks limited gains, ahead of a crucial meeting of global central bankers. The pan-European STOXX 600 index (.STOXX), opens new tab closed 0.2% up, at its highest closing level in more than five months. However, most major regional bourses fell, with Germany's DAX (.GDAXI), opens new tab down 0.6%, but the UK's FTSE 100 (.FTSE), opens new tab hit a record high and closed 1.1% higher. Data showed UK inflation rose to 3.8% in July, its highest since early 2024 and in line with the Bank of England's expectations. Among sectors, consumer-facing food and beverage stocks (.SX3P), opens new tab gained the most, up 2.3%, led by Nestle's (NESN.S), opens new tab 3.6% rise. Personal goods and household companies (.SXQP), opens new tab followed, gaining 1.4%. Optimism of progress towards ending Russia's war in Ukraine persisted, as the U.S. and its allies prepared to work out what military support for Ukraine might involve as part of a deal, but caution also lingered as the details were not clear. Shares of European defence-linked companies (.SXPARO), opens new tab dropped 1.4%, after suffering their worst day in more than a month in the previous session on expectations of a Ukraine peace deal. "Even if the war ends, there's a huge restocking cycle that needs to go on for countries to replenish their weapons, which will keep these companies in business for a long time," said Michael Field, chief equity strategist at Morningstar. "The market is slightly flawed in its thinking about the (defence) sector." Heavyweight tech stocks (.SX8P), opens new tab fell 0.5%, tracking a tech sell-off in the U.S., over concerns over an AI stock bubble and uncertainty around the interest rate outlook. This week, the focus will be on the Federal Reserve's annual Jackson Hole symposium, where Chair Jerome Powell and other major central bank heads are set to speak. "There's always a big expectation and that kind of gets moderated down... I would caution anything massive coming out of this," said Field. The STOXX 600 has gained about 10.2% so far this year on hopes of higher spending in the bloc, a shift to European assets in the first half of 2025 and rising expectations of a U.S. interest rate cut. Rockwool ( opens new tab fell 16.2%, the most on the STOXX 600, after the Danish mineral wool maker lowered its full year guidance. The stock logged its worst day in more than two-and-a-half years. Alcon (ALCC.S), opens new tab slumped 9.4% in its biggest one-day fall in more than five years, after cutting its 2025 net sales forecast on expected impact of U.S. tariffs. British medical equipment maker Convatec (CTEC.L), opens new tab announced a $300 million share buyback program, sending its shares up 5.6% to the top of the STOXX index.