Connect with us

News

BHP says China boosting domestic consumption is key to global economy

Published

on

BHP says China boosting domestic consumption is key to global economy

Stay informed with free updates

The head of the world’s largest mining company has said the outlook for the global economy depends on China’s ability to invigorate domestic consumption, as Donald Trump’s tariffs threaten to disrupt global trade.

Mike Henry, chief executive of Australia’s BHP, said the direct tariff impact on the miner had been “limited”, but the potential for slower economic growth and a fragmented trading environment was a bigger issue for it.

“China’s ability to shift towards a consumption-led economy and for trade flows to adapt to the new environment will be key to sustaining the global outlook,” said Henry.

Advertisement

The comment from the Melbourne-based miner echoed rival Rio Tinto’s a day earlier, when it pointed to “an uncertain future impact from tariffs on the commodity markets going forward”.

China’s booming property and industrial sectors have helped drive demand for commodities including iron ore and copper over the past two decades, boosting global mining companies.

Weakness in the Chinese property market has stifled the sector’s outlook over the past year, but miners including BHP have expressed confidence that China’s plan to revitalise domestic consumption and restore confidence in its economy will bolster demand.

BHP on Thursday said copper production had increased 10 per cent in the three months to the end of March, while iron ore was flat and nickel and coal volumes declined.

The miner has focused on expanding its copper production to meet future demand for a commodity considered key to the energy transition.

Advertisement

It produced 1.5mn tonnes of copper in the nine months to the end of March, a record owing largely to the performance of its Chilean mines and a stabilisation of its assets in South Australia, which were hit by bad weather earlier in the year.

BHP shares, which have fallen 8 per cent over the past month in the market turmoil from the looming trade war between China and the US, gained more than 1 per cent on Thursday.

Analysts said the “robust” production performance affirmed that the company would deliver volumes at the upper end of its forecasts in most of its key commodities.

The miner continued its push to exit coal assets, revealing this week it had received government permission to close its Mount Arthur mine in northern New South Wales by 2030 — reversing a previous plan to run the giant site until 2045 — and would instead explore whether it can convert the site into a hydropower facility.

Advertisement
Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

News

Israel expands Gaza ground offensive after days of air strikes

Published

on

Israel expands Gaza ground offensive after days of air strikes

Unlock the Editor’s Digest for free

Israel said on Saturday that it was expanding a new ground offensive in Gaza, with troops closing in on the enclave after days of air strikes that have killed hundreds of Palestinians.

Defence minister Israel Katz said the renewed fighting was forcing Hamas to soften its stance in talks being held in Qatar to secure the release of the remaining hostages being held in captivity in Gaza — part of an Israeli strategy of “negotiations under fire”.

A Hamas official told Reuters that a new round of talks was under way on Saturday.

Advertisement

Palestinians fear the new offensive is the precursor to a plan approved on May 5 by Israel’s security cabinet, under which most of the besieged enclave would be occupied by the Israeli military and 2.1mn Palestinians would be forced into a small area by the border with Egypt.

“The Palestinian cause is navigating one of its gravest and most perilous junctures,” Egypt’s President Abdel Fattah al-Sisi told an Arab League summit. Israel is engaged in a “deliberate endeavour to forcibly displace [Gaza’s] inhabitants under untold horrors of war”, he said.

Egypt fears an exodus of Palestinians into its territory. NBC News reported that the US is negotiating with Libya to take in as many as 1mn Palestinian refugees.

At least 250 Palestinians have been killed in the last two days, health officials in Gaza said, with hundreds more wounded.

Israel has blocked any food, medicine or fresh water from entering Gaza for the last two and half months, pushing hundreds of thousands of Palestinians into starvation, a UN panel said earlier this week.

Advertisement

The full extent of the offensive was unclear on Saturday. Residents reported machine gun fire in parts of Gaza and Israeli media said tanks had been massed on the border. Israeli warplanes dropped flyers over some parts of Gaza with a reference to the biblical story about Moses parting the sea.

“The Israeli army is coming,” the flyer, shared widely on social media, said.

Israel stepped up the intensity of its air strikes earlier this week as US President Donald Trump wrapped up his Gulf tour.

Israeli officials had earlier referred to his trip as a “window of opportunity” to broker a swap of Israeli hostages for Palestinian prisoners that would be acceptable to Prime Minister Benjamin Netanyahu and his far-right allies.

In the event, Trump only negotiated the release of a single Israeli soldier, who is also an American national.

Advertisement

An estimated 20 hostages and the bodies of as many as 38 more are still being held by Hamas, which has refused to release them without a complete ceasefire and the full withdrawal of Israeli forces.

Katz said Hamas’s return to negotiations was evidence that neither a ceasefire nor the resumption of humanitarian assistance to Gaza was necessary for negotiations to succeed.

UN Secretary-General António Guterres warned that Israel’s siege was “beyond description, beyond atrocious and beyond inhumane”.

“A policy of siege & starvation makes a mockery of international law,” he said on X.

His remarks came days after UN Under-Secretary General for Humanitarian Affairs Tom Fletcher warned of a looming “genocide” in Gaza — the first time a senior UN official has publicly used such language.

Advertisement

Israel rejects Fletcher’s characterisation. It says it has blocked the aid to prevent it from being stolen by Hamas.

More than 53,000 Palestinians have been killed since the war began, most of them women and children, according to local health officials.

At least 1,200 people were killed in Israel in Hamas’s cross-border attack on October 7 2023 and 250 taken hostage, according to Israeli officials.

Continue Reading

News

More than 20 dead after tornadoes sweep through Kentucky and Missouri

Published

on

More than 20 dead after tornadoes sweep through Kentucky and Missouri

Storm damage is surveyed in Laurel County, Ky., after tornadoes brought destruction to the region Friday night.

Laurel County, Ky. Fiscal Court/Facebook/Screenshot by NPR


hide caption

toggle caption

Advertisement

Laurel County, Ky. Fiscal Court/Facebook/Screenshot by NPR

Powerful storms and tornadoes tore through several Midwestern and Southern states overnight Friday, leaving carnage and flattened buildings in their wake.

In Kentucky at least 24 people have died. Authorities say 23 of those deaths occurred in London, Ky., in the southeastern part of the state, with some people still unaccounted for.

A message shortly after 8 a.m. ET from Gov. Andy Beshear called for prayers for the affected families. But less than an hour later, the number of known deaths had already risen by 10.

Advertisement

In Missouri, there are at least seven dead — five in the St. Louis area and two others in a more rural part of the state, south of the capital.

Responders there are still searching homes and buildings for survivors, and officials are asking people to stay out of the impacted areas to allow crews to do their work.

According to PowerOutage.us, the storms left nearly a half million customers without power in dozens of states from Missouri to Maryland.

Advertisement

This is a developing story and will be updated.

Continue Reading

News

Putin’s peace theatre keeps Trump watching — and Kyiv waiting

Published

on

Putin’s peace theatre keeps Trump watching — and Kyiv waiting

In parallel to a brutal war along a 1,000km front, Russia and Ukraine are locked in a titanic diplomatic battle to persuade Donald Trump that the other is the real impediment to peace. 

So Vladimir Putin took a big risk over the last week, slow rolling US negotiators over a peace proposal, according to officials familiar with the discussions, then refusing to turn up for talks with Ukraine’s President Volodymyr Zelenskyy in Turkey that he himself had publicly initiated.

So far, the Russian leader’s refusal to engage on terms set by others has been met with little resistance — and certainly not enough to compel concessions or alter the course of his war.

The clearest sign of that came when US President Donald Trump seemed to excuse the Russian leader’s no-show on Thursday and simultaneously questioned the whole point of the Russia-Ukraine talks, saying: “Nothing’s gonna happen until Putin and I get together.”

It was a gift to Putin, who has long sought a one-on-one meeting with a president determined to normalise US-Russian relations. For the Ukrainians, it revived their worst fears — that Trump will seek to cut a deal with Putin over their heads and sell Ukraine down the river. 

Advertisement

“Putin is doing just enough to convince Trump that he is engaged in this effort to find peace in Ukraine, while also doing as much as possible to make sure it goes nowhere,” said a senior European diplomat involved in the negotiations between western capitals. “And Trump is falling for it.”

That suspicion is shared by some of America’s closest allies. Putin, German defence minister Boris Pistorius said this week, was “trying to lead the American president down the garden path” by refusing to come to Istanbul. “I’m pretty sure that the American president can’t be happy about that,” he told reporters in Berlin.

(2nd left to right) US secretary of state Marco Rubio, Turkish foreign minister Hakan Fidan and Andriy Yermak, head of the Ukrainian president’s office, in Istanbul on Friday © Arda Kucukkaya/Turkish Foreign Ministry via Getty Images

Putin’s reluctance to take part in substantive peace negotiations has become clearer in recent days, even to those in the Trump administration who had been inclined to give him the benefit of the doubt.

On Thursday last week, senior Russian officials told Steve Witkoff, Trump’s special envoy, that Putin did not want to discuss the 22-point peace plan that Witkoff had drawn up with Ukrainian and European input, three people briefed on the discussions told the FT.

Those 22 points were discussed at length the following day on a call between Ukrainian and US officials, according to people familiar with the matter. Ukraine was represented on the call by Zelenskyy’s chief of staff, Andriy Yermak, and Ukrainian defence minister Rustem Umerov; the US by Witkoff, Secretary of State Marco Rubio, who is also currently serving as national security adviser, and Gen Keith Kellogg, Trump’s special envoy for Kyiv.

Advertisement

Russia’s response resulted in Witkoff, who has met Putin for talks four times since February, postponing provisional plans to meet the Russian leader this week, the people said. A person close to Witkoff said no trip had been planned.

Russian President Vladimir Putin greets US special envoy Steve Witkoff (left) prior to their talks in Moscow on April 25
Russian President Vladimir Putin greets US special envoy Steve Witkoff (left) prior to their talks in Moscow on April 25 © Kristina Kormilitsyna/Pool/AFP/Getty Images

In the days that followed, the pace of diplomatic activity picked up. European and Ukrainian leaders met to call for an unconditional, 30-day ceasefire in the war, warning Putin of tough new sanctions if he failed to comply — a demand supported by the US.

Putin rejected the demand but came back with his own counterproposal — direct Russia-Ukraine talks, to be held on Thursday in Istanbul. Trump welcomed the idea and urged Zelenskyy to take part. The Ukrainian leader acceded to his request and challenged Putin to come to Turkey himself for what would have been only the second in-person meeting between them. 

But the Russian leader refused and sent a low-level delegation instead, led by his former culture minister Vladimir Medinsky.

The meeting, held on Friday, wrapped up after less than two hours, without a breakthrough. The two sides agreed to swap thousands of prisoners-of-war, but made no progress on a lasting ceasefire.

European leaders expressed their frustration. “The past few hours have shown that Russia has no interest in a ceasefire and that, unless there is increased pressure from the Europeans and Americans to achieve this outcome, it will not happen spontaneously,” said French President Emmanuel Macron said, referring to new sanctions.

Advertisement

“People in Ukraine and across the world have paid the price for Putin’s aggression in Ukraine and across Europe, now he must pay the price for avoiding peace,” said UK prime minister Sir Keir Starmer.

Starmer, Macron, German Chancellor Friedrich Merz and Polish Prime Minister Donald Tusk ended up issuing a joint statement saying Putin’s position was “unacceptable”.

The four leaders, together with Zelenskyy, also held a joint phone call with Trump. Starmer said there was now “a high level of co-ordination” between a core of four countries — the UK, France, Germany and Poland — “and the US administration of President Trump” on Ukraine.

Ukrainian President Volodymyr Zelenskyy arrives to speak to the media after his meeting with Turkish President Recep Tayyip Erdoğan on Thursday in Ankara, Turkey
Ukrainian President Volodymyr Zelenskyy arrives for a press conference after meeting Turkish President Recep Tayyip Erdoğan in Ankara, Turkey on Thursday © Getty Images

“It is just drip, drip, drip,” said one European foreign minister, referring to Europe’s messaging to the Trump administration in the hope the president eventually shifts position on Russia.

But so far that European rhetoric has not been matched by anyone in the Trump administration, which has continued to express frustration with both sides in the conflict, without singling out Russia, and hint that it could walk away.

Rubio said on Thursday that Trump was “willing to stick with this as long as it takes to achieve peace”. “What we cannot do, however, is continue to fly all over the world and engage in meetings that are not going to be productive,” he said.

Advertisement

A senior Ukrainian official described the situation as Putin and Zelenskyy being locked in a geopolitical game of “blackjack” — with Trump as the dealer.

Putin held a “strong but risky” hand, the official said. Ukraine is betting that if he draws one more card, the Russian president could go “bust”.

Additional reporting by George Parker in Tirana

Continue Reading

Trending