Latest news with #PanmureLiberum
Mint
15 hours ago
- Business
- Mint
Why Trump's nuclear plans have so far failed to boost uranium prices
Plans for a U.S. nuclear-power revival have excited uranium investors, stoking demand for shares in companies that produce the fuel. Yet the price miners get in the spot market for the uranium they sell has barely reacted. The spot price for U3O8, a lightly processed concentrate known as yellowcake, this week shed some of the small gains it made a week ago after President Trump signed executive orders on May 23, aimed at quadrupling nuclear-power capacity in the next 25 years. The commodity's price rose to $71.10 a pound on May 26 from $70.50 a pound in the week prior, according to UxC, a market-data firm that assesses uranium prices. This week, it is back at $70.90 a pound. The executive orders have so far had a short-lived impact on the uranium market, said Jonathan Hinze, president of UxC. 'People are waiting to see how these new policies might translate into new reactors and fuel demand, but that will take some time," he said. The industry has reasons for caution. Over the next few years, the market faces a persistent oversupply, according to analysts at Panmure Liberum. They project the average spot price will be back below $60 a pound in 2026. Miners have been ratcheting up production of uranium after the market emerged from a decadelong funk that followed the 2011 Fukushima disaster in Japan. This year, the industry—like many others—is also grappling with tariff uncertainty under the Trump administration, which has paralyzed U.S. utilities. While up from a March low of around $63 a pound, an 18-month nadir, uranium's spot price remains down 1.2% year to date, according to UxC. It traded above $100 a pound as recently as last year on supply disruptions. The spot market—while thinly traded and, consequently, volatile—can be an important indicator of sentiment in the otherwise opaque uranium industry. It is also a source of sales for miners to generate profits. Uranium doesn't trade on an open market like many other commodities. Instead, most uranium dug up by miners is sold under long-term contracts to customers that include U.S. power companies. That term price has sat around $80 a pound for most of this year. The spot trade makes up less than 20% of the market, and includes one-off deals between producers and power utilities as well as traders and funds that hold physical uranium. Recent spot-market sluggishness hasn't curbed excitement in the broader market, as expectations of a nuclear comeback rise. 'It's time for nuclear," Trump said at a signing ceremony at the White House last month. Investors bet on uranium mostly via the stocks of uranium companies or exchange-traded funds. The Global X Uranium ETF—which tracks a basket of companies involved in mining uranium and producing nuclear components—has gained roughly 12% versus its closing value the day before Trump signed the orders. Canadian miner Cameco, one of the world's top uranium producers, is up about 10% over the same period. Citi analyst Samuel Schubert sees reasons to believe the U.S. executive orders could stimulate uranium demand in the near term. 'These aren't just long-dated ambitions," Schubert said in a recent note. He highlighted Trump's order for the Energy Department to work with utilities to increase maximum power at which existing reactors can operate, among other actions. 'We think these executive orders could help reignite investor interest, in particular through uranium ETF demand," added Morgan Stanley analysts in their own note. That could support future spot purchases, given that some physical ETFs buy uranium from the market, they said. Still, the time it takes to develop nuclear capacity means there is likely to be a limited immediate impact on uranium demand more broadly, Morgan Stanley analysts said. The Panmure Liberum analysts said nuclear plans—not just in the U.S., but in Indonesia, Germany, and Belgium, too—could result in prices higher than they currently forecast, but not likely until at least 2027. 'At this very early stage, the uranium market has no useful data to work with yet on the scale/duration of reactor capacity growth in Indonesia-U.S.-Germany-Belgium," the analysts said. Even China, known for its speedy construction, takes between five and 10 years to design, approve, and build a reactor, they said. Write to Rhiannon Hoyle at
Yahoo
a day ago
- Business
- Yahoo
Trump's TACO codename will make him so mad he'll enforce tariffs just to make a point: expert
The TACO codename used by Wall Street traders to describe President Donald Trump is more likely to make him stick with his international tariffs 'just to prove a point.' The nickname— short for 'Trump Always Chickens OUT' — came about because of the president's habit of making tariff threats, resulting in a drop in the markets, only for him to walk the threat back and see the markets rebound. 'We think that, unfortunately, as the so-called TACO trade becomes more viral, it becomes more likely that Trump will stick to higher tariffs just to prove a point,' Joachim Klement of investment bank Panmure Liberum told Reuters. The acronym was coined by Financial Times columnist Robert Armstrong writing about Trump's so-called 'Liberation Day' in April, which caused the markets to hit historic lows before he ordered a 90-day pause one week later. It led to record highs. 'The US administration does not have a very high tolerance for market and economic pressure, and will be quick to back off when tariffs cause pain,' Armstrong said. 'This is the TACO theory: Trump Always Chickens Out.' It did not go down well with Trump, who responded with fury when asked about the acronym last week. 'That's a nasty question,' he said. 'To me, that's the nastiest question.' 'You call that chickening out? It's called negotiation,' Trump said, visibly irked. Since the nickname took off online, people shared AI-generated memes of the president in a chicken suit. The president was caught off guard and was unaware of the term, according to CNN. 'He thought the reporter was calling him a chicken,' a White House official told the outlet. Trump was reportedly irritated that his team did not tell him about the phrase as it gained traction in financial circles and the media. 'It clearly bothered him, primarily because it demonstrated a lack of understanding about how he actually utilizes those threats for leverage,' a person familiar with the matter told CNN. 'But obviously he's not a guy who looks kindly on weakness, so the idea anyone would think that with respect to his actions isn't received well.' The frustration follows the Court of International Trade's ruling that the Trump administration must dismantle the 'reciprocal' tariff policy. The federal court ruled he lacked the authority to create it, which the White House immediately appealed. The administration won a reprieve, which means the tariffs will be reinstated while the case makes its way through the courts, but uncertainty looms over the economy.
Yahoo
a day ago
- Business
- Yahoo
Trump's TACO codename will make him so mad he'll enforce tariffs just to make a point: expert
The TACO codename used by Wall Street traders to describe President Donald Trump is more likely to make him stick with his international tariffs 'just to prove a point.' The nickname— short for 'Trump Always Chickens OUT' — came about because of the president's habit of making tariff threats, resulting in a drop in the markets, only for him to walk the threat back and see the markets rebound. 'We think that, unfortunately, as the so-called TACO trade becomes more viral, it becomes more likely that Trump will stick to higher tariffs just to prove a point,' Joachim Klement of investment bank Panmure Liberum told Reuters. The acronym was coined by Financial Times columnist Robert Armstrong writing about Trump's so-called 'Liberation Day' in April, which caused the markets to hit historic lows before he ordered a 90-day pause one week later. It led to record highs. 'The US administration does not have a very high tolerance for market and economic pressure, and will be quick to back off when tariffs cause pain,' Armstrong said. 'This is the TACO theory: Trump Always Chickens Out.' It did not go down well with Trump, who responded with fury when asked about the acronym last week. 'That's a nasty question,' he said. 'To me, that's the nastiest question.' 'You call that chickening out? It's called negotiation,' Trump said, visibly irked. Since the nickname took off online, people shared AI-generated memes of the president in a chicken suit. The president was caught off guard and was unaware of the term, according to CNN. 'He thought the reporter was calling him a chicken,' a White House official told the outlet. Trump was reportedly irritated that his team did not tell him about the phrase as it gained traction in financial circles and the media. 'It clearly bothered him, primarily because it demonstrated a lack of understanding about how he actually utilizes those threats for leverage,' a person familiar with the matter told CNN. 'But obviously he's not a guy who looks kindly on weakness, so the idea anyone would think that with respect to his actions isn't received well.' The frustration follows the Court of International Trade's ruling that the Trump administration must dismantle the 'reciprocal' tariff policy. The federal court ruled he lacked the authority to create it, which the White House immediately appealed. The administration won a reprieve, which means the tariffs will be reinstated while the case makes its way through the courts, but uncertainty looms over the economy. Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
The Independent
a day ago
- Business
- The Independent
Trump's TACO codename will make him so mad he'll enforce tariffs just to make a point: expert
The TACO codename used by Wall Street traders to describe President Donald Trump is more likely to make him stick with his international tariffs 'just to prove a point.' The nickname— short for 'Trump Always Chickens OUT' — came about because of the president's habit of making tariff threats, resulting in a drop in the markets, only for him to walk the threat back and see the markets rebound. 'We think that, unfortunately, as the so-called TACO trade becomes more viral, it becomes more likely that Trump will stick to higher tariffs just to prove a point,' Joachim Klement of investment bank Panmure Liberum told Reuters. The acronym was coined by Financial Times columnist Robert Armstrong writing about Trump's so-called 'Liberation Day' in April, which caused the markets to hit historic lows before he ordered a 90-day pause one week later. It led to record highs. 'The US administration does not have a very high tolerance for market and economic pressure, and will be quick to back off when tariffs cause pain,' Armstrong said. 'This is the TACO theory: Trump Always Chickens Out.' It did not go down well with Trump, who responded with fury when asked about the acronym last week. 'That's a nasty question,' he said. 'To me, that's the nastiest question.' 'You call that chickening out? It's called negotiation,' Trump said, visibly irked. Since the nickname took off online, people shared AI-generated memes of the president in a chicken suit. The president was caught off guard and was unaware of the term, according to CNN. 'He thought the reporter was calling him a chicken,' a White House official told the outlet. Trump was reportedly irritated that his team did not tell him about the phrase as it gained traction in financial circles and the media. 'It clearly bothered him, primarily because it demonstrated a lack of understanding about how he actually utilizes those threats for leverage,' a person familiar with the matter told CNN. 'But obviously he's not a guy who looks kindly on weakness, so the idea anyone would think that with respect to his actions isn't received well.' The frustration follows the Court of International Trade's ruling that the Trump administration must dismantle the 'reciprocal' tariff policy. The federal court ruled he lacked the authority to create it, which the White House immediately appealed. The administration won a reprieve, which means the tariffs will be reinstated while the case makes its way through the courts, but uncertainty looms over the economy.
Zawya
2 days ago
- Business
- Zawya
US copper futures surge as tariff fears loom
U.S. copper futures surged nearly 6% on Monday, widening their premium over London prices amid rising speculation about possible new import tariffs following President Donald Trump's latest aluminium trade measures. Trump said on Friday he planned to increase tariffs on imported steel and aluminium to 50% from 25%. U.S. Comex copper futures gained 5.7% to $4.9175 a pound, the highest since April 3. Benchmark three-month copper on the London Metal Exchange (LME) rose 1.1% to $9,597.50 per metric ton by 0944 GMT. The premium on COMEX copper over the LME price, a global benchmark, widened to $1,231 per ton from $759 on Friday . "Although copper wasn't even mentioned in Trump's latest announcement, markets are clearly pricing in the risk of import tariffs following the February investigation - highlighting strong investor demand for the metal," said Panmure Liberum analyst Tom Price. In February, Trump ordered a probe into possible new tariffs on copper imports to rebuild U.S. production of a metal critical to electric vehicles, military hardware, and semiconductors. LME aluminium steadied at $2,443.50 a ton, after earlier touching its lowest level since May 12 at $2,425.50. The U.S. Midwest aluminium premium jumped 54% from Friday to $0.58/lb or $1,279 a ton. Goldman Sachs in a note said that if the higher metals tariffs come into and remain in effect, the U.S. Midwest aluminium premium would rise to around $0.68-0.70/lb. Lead rose 0.9% to $1,975, zinc gained 1.7% to $2,663.50, tin edged 0.8% higher to $30,600 and nickel was up 0.9% at $15,365. Providing support to the industrial metals was a softer U.S. dollar, making metals more affordable for holders of other currencies. The Dragon Boat Festival holiday in China kept Asian participation muted on Monday, said Neil Welsh, head of metals trading at Britannia Global Markets. (Reporting by Ashitha Shivaprasad in Bengaluru and Polina Devitt in London Editing by Kirsten Donovan)
