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    Biden, Suga poised to present united front on Taiwan as China steps up pressure

    U.S. President Joe Biden and Japanese Prime Minister Yoshihide Suga will present a united front on Taiwan, China's most sensitive territorial issue, in a summit meeting on Friday, according to a senior U.S. administration official. Biden and Suga are expected to agree on a joint statement on the Chinese claimed but democratically ruled island at Biden's first in-person meeting with a foreign leader, said the official, who spoke on the condition of anonymity. Biden and Suga will also discuss Beijing's treatment of Muslims in the Xinjiang region and its influence over Hong Kong, while also announcing a $2 billion Japanese investment in 5G telecommunications to counter China's Huawei Technologies.

  • Business

    Peru Candidate Seeks Bigger Cut From Mining, Not State Control

    (Bloomberg) -- The first-round winner of Peru’s presidential election wants to renegotiate mining contracts rather than seize assets, said a party official, in comments that may ease company concerns in the second-biggest copper-producing nation.While Free Peru’s official platform mentions taking control of natural resources, its candidate Pedro Castillo isn’t looking to nationalize the mining industry, and welcomes private investment, the party’s legal representative Ana Maria Cordova said by telephone. Castillo, who will announce some “adjustments” to his platform, wants a bigger share of company profits to benefit Peruvians.“Not to expropriate them, not to nationalize or anything, but so that the conditions in some way also favor populations where these industries or mining operations are involved,” she said. “It is simply renegotiating conditions so that they somehow improve in favor of the population.”Castillo will face right-winger Keiko Fujimori in a June 6 runoff vote. Fujimori has warned that her rival’s plans to rewrite the constitution and take over strategic companies make him a danger to democracy. Whatever the outcome, higher investment risk will result in less copper supply over time, Jefferies analyst Christopher LaFemina wrote. That may help push up prices of the metal as demand surges amid a transition to clean energy and transport.Castillo wants to ensure certain resources better serve local populations, Cordova said, citing some of the highest gas prices in South America despite Peru being a major producer. Uncertainties surrounding the rural schoolteacher-turned-politician, who earlier this week vowed to nationalize the Camisea gas deposit, have spooked investors.Still, Peru has experienced hard-line candidates in the past who softened their views after taking office, and any radical moves would have to get through a predominantly investor-friendly congress.“I don’t see Peru going the way of Venezuela,” said Bloomberg Intelligence analyst Grant Sporre. “That said, if the country does raise royalties and taxes, that will make investment more difficult and projects in copper, for instance, are likely to slow. Peru still needs to remain competitive.”Peruvian operations owned by companies including BHP Group, Freeport-McMoRan Inc. and Southern Copper Corp. account for 11% of the world’s mined copper. Anglo American Plc is scheduled to begin production at the Quellaveco mine next year. The country is also a major producer of zinc, silver and gold.No ‘Apocalypse’Cordova said private capital “won’t be touched,” with the government simply looking for a bigger share of profit.“The government plan remains the same, what will be done are detail clarifications, and obviously based on the conversations with the other political organizations, there may be some flexibility,” she said.“In the short term, we still see a lot of resilience in the sector and a positive macroeconomic environment,” said Hector Collantes, an associate director at Fitch Ratings, who covers metals and mining. “There’s a lot of caution in the medium term to decide on growth projects that could affect the long term.”Gold Fields Ltd. Americas Executive VP Luis Rivera said on Wednesday that Peru’s constitution had proven resilient in the past. “It’s not like this is going to be an apocalypse,” he said at an industry seminar.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Oil Set for Best Week Since Early March on Better Demand Outlook

    Oil Set for Best Week Since Early March on Better Demand Outlook

    (Bloomberg) -- Oil is heading for the biggest weekly gain since early March on optimism the recovery in demand from the Covid-19 pandemic is improving.Futures in New York were steady Friday and up almost 7% this week. There are more signs of an economic rebound in the U.S., with jobless claims falling to a new pandemic-era low and retail sales accelerating. That followed government data that signaled rising American gasoline consumption and positive outlooks for the global energy market from the International Energy Agency and OPEC.The positive momentum has helped oil break out of a narrow range around $60 a barrel, where prices were had been stuck since mid-March. The market may see a temporary lull due to new virus outbreaks, according to the the IEA, but the agency followed OPEC in boosting its full-year estimates for consumption.The global recovery from the pandemic is uneven, however. While rebounds are gathering pace in the U.S. and China, other nations are grappling with sharp rises in cases. In India, refineries are diverting oxygen produced at their plants to help battle a serious second wave.See also: Iran Demands U.S. Identify Sanctions to Be Lifted to End ImpasseThe market is also facing an increase in supply in the coming months, although OPEC said this week that rising demand should trim global stockpiles, while the IEA said the lingering glut was clearing. The OPEC+ alliance is scheduled to start adding more barrels from May.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.