Connect with us

AMERICA

Copper market rocked by Chilean mine strike

Published

on

Unionised workers at Escondida, the world’s largest copper mine in northern Chile, went on strike on Tuesday 13 August. If the strike continues, the copper market could lose hundreds of millions of dollars.

Workers from Union No.1 at the Escondida mine, which means ‘hidden’, in northern Chile went on strike on Tuesday 13 August. The Escondida mine is a major source of copper, accounting for 5 per cent of the world’s total mined copper. The mine takes its name from the rich ore deposits ‘hidden’ beneath the Atamaca desert. While it is known that 90 per cent of the workers at Australia-based BHP, the world’s largest copper mining company, are members of the union, BHP, which owns 60 per cent of the shares in the Escondida mine, was shaken by the strike. The workers’ demands include a reduction in working days, an increase in bonuses and compensation payments, and the distribution of 1% of the mine’s shares to the workers. The distribution of shares to the workers, which is one of the main points of contention, amounts to $35,000 per worker. During the dispute, BHP offered the workers a bonus of $28,900, but the workers did not take up the offer, which was well below their expectations of $35,000.

BHP declares state of emergency

The process of reaching an agreement between BHP and the union continues. The company, in disagreement with the union over the demands, has declared a state of emergency and is continuing to mine with non-union labour. The union responded by accusing BHP of breaking strike rules by using reserve labour and demanding ‘an immediate end to this anti-union practice’.

In a statement, BHP said it had invited the union to resume talks on Tuesday, but that the invitation had gone unanswered, and that it had implemented its contingency plan and continued mining operations with non-union workers on minimum hours. On 14 August, the company offered the union to suspend the strike until 8pm on 15 August if negotiations continued. However, the union is not in favour of suspending the strike, even temporarily. According to the union, BHP has placed too many conditions on the resumption of negotiations, while at the same time replacing workers and engaging in anti-union activities. The union described the company’s demands and conditions as “making it impossible to resume talks” and complained that the company had given it too little time to assess the conditions and make a decision.

‘BHP could lose $795m if strike drags on’

Following the start of the strike, the French news agency AFP reported today that BHP shares had fallen by almost 1 per cent. US investment bank Goldman Sachs highlighted that the company would lose at least $250 million if the strike lasted 10 days, while Brazilian investment bank BTG Pactual highlighted the union’s strike in 2017. According to BTG Pactual, if the current strike lasts as long as the one in 2017, BHP’s daily loss could be between $25m and $30m. The Brazilian investment bank noted in its report that the current situation is also damaging Chile’s GDP (Gross Domestic Product). Goldman Sachs estimated that if the strike lasted 44 days, the damage would reach USD 795 million.

Copper stock markets are shaky

In addition to the damage to the company, it is also interesting to see how the copper market will be affected by this strike. The copper market was shaken by the closure of the Panamanian copper company Cobre Panama in the final months of last year. If the current strike at the Escondida mine, which is very important to the market, has a similar result to the copper price spike caused by the strike in 2017, it could be very damaging to the market. According to the Australian Mining news agency, the Copper Exchange is struggling to hold on to its gains from the Covid-19 period. Despite the risk of disruption, copper prices are currently holding steady at the London Metal Exchange’s announced price of USD 8,968.50 per tonne, in line with weak demand from China. However, this could change if the strike continues.

AMERICA

Microsoft urges Trump to address Russian and Chinese ‘cyber threats’

Published

on

Microsoft President Brad Smith has called on Donald Trump to take decisive action against cyber-attacks originating from Russia, China, and Iran, citing an alarming rise in state-sponsored hacking targeting U.S. government officials and election campaigns.

Speaking to The Financial Times (FT), Smith, who also serves as the company’s executive vice president and chief legal officer, emphasized that cybersecurity “deserves to be a more prominent issue in international relations.” He urged the incoming Trump administration to send a strong message to deter hostile nations.

“I hope the Trump administration will push harder against nation-state cyberattacks, particularly from Russia, China, and Iran. We cannot tolerate the level of attacks we have seen today,” Smith stated.

Rise in ransomware attacks

Smith pointed to a surge in ransomware attacks on U.S. companies, frequently carried out by criminal organizations that he said are often “tolerated … and in some cases, even facilitated” by the Russian government.

Adding to the concerns, U.S. law enforcement officials last week accused China of conducting a widespread cyber espionage campaign, infiltrating multiple American telecommunications networks ahead of the election.

According to Microsoft, its customers face more than 600 million cyber-attacks daily, underscoring the urgent need for robust defensive measures.

Progress under Biden administration

Smith acknowledged that the Joe Biden administration has made “tremendous progress in strengthening cybersecurity defenses.” However, he stressed the need for additional measures to deter and dissuade other nations from engaging in such activities.

A recent Microsoft study revealed that nation-state groups and criminal gangs are increasingly collaborating, sharing tools, and conducting joint operations to target vulnerable systems.

In his testimony before the U.S. Senate in September, Smith highlighted that Russia, China, and Iran have ramped up digital efforts to interfere in global elections, including those in the United States.

Microsoft faces security criticism

Despite its advocacy for stronger cybersecurity measures, Microsoft itself has faced scrutiny over its own security practices.

In March, a report by the U.S. Cybersecurity Review Board criticized the company’s security culture, describing it as “inadequate.” The report highlighted several “avoidable mistakes” that allowed Chinese hackers to access hundreds of email accounts hosted on Microsoft’s cloud systems, including those of senior U.S. government security officials.

In response, Microsoft CEO Satya Nadella pledged to prioritize security “above all else,” including linking employee compensation to improved security outcomes. The company has also begun implementing changes to its Windows operating system to enable faster recovery from incidents such as the global IT outage caused by a flawed CrowdStrike security update in July.

Call for exporting digital technologies to the Middle East and Africa

Beyond cybersecurity, Smith commented on the potential impact of a second Trump administration on the technology sector. He noted that anticipated changes to merger and acquisition regulations in the U.S. could be offset by heightened scrutiny in other regions.

Smith also renewed his call for the U.S. government to “help accelerate the export of key American digital technologies” to regions like the Middle East and Africa. This appeal comes in the wake of export controls imposed by the Biden administration on artificial intelligence chips over fears they could be diverted to China.

“We really need to standardize processes so that American technology can get to these other parts of the world as quickly as Chinese technology,” Smith stated.

Continue Reading

AMERICA

Biden plans to write off Ukraine’s $4.6bn debt ahead of Trump

Published

on

President Joe Biden’s administration has officially notified Congress of its intention to forgive Ukraine’s $4.65 billion debt, a move tied to ongoing efforts to support the country amid its conflict with Russia.

This debt represents half of the $9 billion provided to Kyiv as part of the $61 billion aid package approved by Washington in April. Unlike other forms of assistance, this funding was issued as conditionally repayable loans, with provisions allowing the United States President to cancel up to 50% of the debt if deemed necessary.

In a statement, the U.S. State Department explained that the debt cancellation is intended to “help Ukraine win” and serves the national interests of the U.S., the EU, G7+, and NATO.”

According to Bloomberg, President Biden is determined to maximize aid to Ukraine before President-elect Donald Trump assumes office. However, the decision to write off the debt has drawn sharp criticism from Republicans.

Republican Senator Rand Paul argued that the Biden administration’s decision places undue financial burden on the American public. He pledged to demand a vote in the Senate to challenge the proposal.

Despite this, Bloomberg notes that any effort to overturn the debt cancellation would require approval from both houses of Congress, a scenario that appears unlikely given the Democratic majority in the Senate. Furthermore, President Biden holds veto power, making reversal of the decision even more challenging.

Earlier, U.S. Secretary of State Antony Blinken announced plans to exhaust all remaining aid approved by Congress before President Trump’s inauguration on January 20.

National Security Advisor Jake Sullivan emphasized that one of the administration’s key goals is to position Ukraine as strongly as possible—both militarily and at the negotiating table.

Pentagon officials reported that $9.3 billion in military aid is currently in the pipeline. Pentagon spokeswoman Sabrina Singh confirmed plans for weekly arms deliveries to Kyiv, with the aim of expediting aid distribution before the presidential transition.

On November 20, the Pentagon unveiled an additional $275 million military aid package for Ukraine, further underscoring the administration’s commitment to strengthening Ukraine’s defense capabilities.

Continue Reading

AMERICA

Donald Trump taps Howard Lutnick to lead Commerce Department

Published

on

Donald Trump has announced his intention to nominate Wall Street investor and campaign donor Howard Lutnick as the new head of the U.S. Department of Commerce, placing the billionaire at the forefront of implementing the sweeping tariffs promised during his presidential campaign.

Lutnick, who co-chaired Trump’s transition team, had previously been considered for the role of Treasury Secretary. He is also the CEO of Cantor Fitzgerald, a prominent investment firm.

In a statement on Tuesday, Trump declared that Lutnick would be “directly responsible” for leading the Commerce Department and overseeing the Office of the U.S. Trade Representative (USTR).

The USTR, established in 1974 to manage negotiations with U.S. trading partners, traditionally reports directly to the president. If confirmed by the Senate, the 63-year-old Lutnick will play a pivotal role in aiding U.S. businesses and executing Trump’s proposed tariffs on international trade partners.

Trump has outlined plans for a 60% tariff on imports from China and a global tariff of up to 20%, signaling a major shift in U.S. trade policy.

Lutnick, despite lacking prior government experience, has been a steadfast advocate for Trump’s economic agenda. During a New York campaign rally, Lutnick remarked, “When was America great? At the turn of the century, our economy was floundering! That was 125 years ago. We had no income tax and all we had were tariffs.”

While Lutnick has emerged as a major donor to Trump, he has also supported establishment Democrats and Republicans in the past, including Chuck Schumer and Jeb Bush. He contributed to both Hillary Clinton’s 2008 and 2016 campaigns, hosting a fundraiser for her in 2015. Lutnick maintains a personal friendship with the Clintons, noting their attendance at a Cantor Fitzgerald fundraiser in September 2022.

Lutnick has also maintained a long-standing relationship with Trump, even appearing on The Celebrity Apprentice in 2008. He disclosed to the Financial Times in October that he has donated over $10 million to Trump’s 2024 campaign and another $500,000 to the transition team, totaling approximately $75 million.

Treasury Secretary selection process still uncertain

The position of Treasury Secretary, one of the most significant roles in Trump’s administration, remains undecided. Lutnick’s name has been floated for the role, though he faces competition from hedge fund manager Scott Bessent, private equity billionaire Marc Rowan, and former Federal Reserve governor Kevin Warsh.

Marc Rowan, the CEO of Apollo Global Management, has emerged as a leading contender and is expected to meet with Trump to present his case. Rowan’s supporters cite his extensive expertise in financial markets, though competition remains fierce.

Forecasting site Polymarket currently lists Warsh as the favorite for Treasury Secretary, followed by Bessent, Rowan, and William Hagerty. If unsuccessful in his bid for Treasury Secretary, Bessent is reportedly vying for the chairmanship of the National Economic Council.

Trump names Mehmet Oz to run Medicare and Medicaid

Trump also announced on Tuesday his nomination of Dr. Mehmet Oz to lead the Centers for Medicare and Medicaid Services (CMS). Describing Oz as “one of the most talented physicians” capable of “making America healthy again,” Trump expressed confidence in Oz’s ability to reduce waste and fraud within the nation’s largest government agency.

Dr. Oz, a former heart surgeon and Columbia University professor, rose to prominence as Oprah Winfrey’s health expert before hosting his own popular talk show. However, his career has been controversial, with critics accusing him of promoting scientifically dubious theories and unproven treatments.

Oz’s political experience includes a 2022 Senate race in Pennsylvania, where he was endorsed by Trump but ultimately lost to Democrat John Fetterman.

Continue Reading

MOST READ

Turkey