Bloomberg - Evening Briefing - Metal is back

Metal is back. Some of the world’s biggest energy trading companies are returning to the sector years after getting burnt in notoriously difficult markets. Vitol Group, Gunvor Group and Mercuria Energy Group are among the traders building out their metals teams as they look to deploy capital generated by record profits. The shift comes as forecasters turn bullish on copper, aluminum and other metals, where long-anticipated production shortfalls are starting to manifest. Many commodities houses also see strong links between metals usage and power markets—another growth area for traders. “For the oil traders, there’s a whole energy transition story, but they’ve also got the cash to take significant positions,” said Kristofer Tremaine, chief executive of commodities sector lender Kimura Capital. “A lot of metal traders should be worried–they’re going to lose a lot of market share.” —David E. Rovella

While US employees everywhere could enjoy new-found freedom after the Federal Trade Commission ditched non-compete agreements, Wall Street traders and money managers may be in for a disappointment if they’re hoping to jump. Those dreaded caveats have long been a facet of financial industry contracts for employees privy to sensitive information like trading strategies or pending deals. Here’s why, despite the FTC ruling, finance folks might just lose out.

Spanish Prime Minister Pedro Sanchez said he’s considering resigning due to the attacks he and his wife have faced in recent weeks. Sanchez, 52, said he’s canceling all public appearances for the next few days to reflect on the situation and will announce his decision April 29. “Is all this worth it?” he asked in an open letter posted on social media. “Honestly, I don’t know.”

Pedro Sanchez Photographer: Valeria Mongelli/Bloomberg

A St. Petersburg court froze JPMorgan’s Russian assets pending a lawsuit by the country’s second-largest bank in which it seeks to recover $440 million. VTB Bank had requested the step, alleging the defendants were “taking measures to withdraw their assets” from the country. Russia has regularly sought to retaliate against sanctions imposed by the US and its allies over Vladimir Putin’s war on Ukraine by limiting access to domestic assets by companies from so-called unfriendly states.

Ryanair Chief Executive Officer Michael O’Leary jumped into the UK government’s controversial plan to deport refugees to Rwanda, saying he would “happily” do the flights if he had the available aircraft. Conservative Prime Minister Rishi Sunak has vowed to push ahead with a plan to send people seeking asylum in the UK to Rwanda despite opposition from courts and across both sides of the political spectrum.

Airlines will now have to provide automatic refunds to travelers flying to, from and within the US if flights are canceled or significantly altered under new Department of Transportation rules. The goal is to make it easier for people to get money back and to make refund policies more consistent from one airline to the next, the agency said. Airlines and ticket agents rejecting or delaying refunds made up 87% of all air-travel service complaints at the height of the pandemic. “Passengers deserve to get their money back when an airline owes them—without headaches or haggling,” Transportation Secretary Pete Buttigieg said. Under the new rule, passengers will be entitled to refunds if there is a “significant change” to their flights.

Checked bag fees are among the potential refunds under new DOT rules. Photographer: Angus Mordant/Bloomberg

China is said to be moving to curb so-called snowball derivatives after brokers hiked returns to near-record levels, trying to lure investors to the risky products. Some of the biggest brokerages were told to suspend any increase in their net exposure to over-the-counter derivatives involving domestic A shares, including “snowball” products based on options contracts. The crackdown adds to a range of restrictions imposed on other derivatives businesses since late last year, as Beijing tries tostabilize its stock market amid an uncertain economic outlook and waning investor confidence. 

Protests have exploded across US college campuses over the war in Gaza and US support for Israel. Students at Harvard University escalated campus actions over the conflict this week, mirroring demonstrations at Columbia, Yale and New York University. The protests, which also span campuses from the University of Michigan to University of California at Berkeley, center on calls for schools to sever financial ties with companies linked to Israel, and for the US to end military aid to Israel. The Israel-Hamas war was triggered on Oct. 7 when Hamas attacked Israel, killing 1,200 people and kidnapping hundreds more, Israel said. Since then, at least 34,000 people have died in Gaza, Hamas’s health ministry said. The United Nations has warned of spreading famine across Gaza, where at least 1.7 million people have been displaced. On Wednesday, hundreds of University of Texas at Austin students also walked out in protest, but were met by dozens of state troopers in riot gear who demanded they disperse, arresting many. 

Protestors over the war in Gaza at an encampment outside New York University in Manhattan on April 22. Photographer: Stephanie Keith/Bloomberg

• Israel readies attack on Rafah, expands strikes in southern Lebanon.
• NATO’s newest member is making preparations for the worst case.
• Florida’s home insurance industry may be worse than anyone realizes.
• Battery recycling shatters the myth of electric-vehicle waste.
• New Bloomberg/Morning Consult poll has sobering news for Joe Biden. 
• Climate change poses a child labor “threat multiplier.”
• London’s Canary Wharf is in trouble—but not that much trouble.

Last year, when World’s 50 Best issued its first global ranking of hotels, only two properties in the US made the cut: the Equinox and Aman New York hotels, both in Manhattan. Now Michelin has arrived stateside and is weighing in with its second-ever presentation of “keys,” a new system in which it bestows one, two or three key emblems—just like its restaurant stars—but to the world’s worthiest hotels. Out of more than 1,000 luxury hotels across America, 11 were got three keys.  

Aman New York Source: Aman

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