Latest News
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Bloomberg News reports that Abu Dhabi's MGX may raise up to 25 billion dollars for AI fund.
Bloomberg News reported that Abu Dhabi's MGX was considering raising up to $25 billion from third parties to increase its artificial intelligence holdings. MGX refused to comment on the reports and could not verify them immediately. The report stated that company executives are considering raising money from strategic and financial investors in Abu Dhabi, and elsewhere, but Mubadala Investment Co. and AI firm G42 remain MGX’s primary backers. According to the report, no final decisions have yet been taken. MGX is headed by Sheikh Tahnoon bin Zayed al Nahyan. He is the UAE's National Security Advisor and a younger brother to UAE President Sheikh Mohammed bin Zayed. The Financial Times reported that last week, French AI startup Mistral was in talks with MGX as well as other investors for a $1 billion raise at a $10 billion valuation.
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Stocks surge on Fed rate-cut hopes following disappointing jobs data
Investors raised their bets that the Federal Reserve will act to support the world's biggest economy. Global stocks rose for the second session of the day on Tuesday. U.S. stocks rallied Monday, boosted by generally positive earnings reports. Bets on a Fed rate cut in September increased after Friday's disappointing jobs report. The oil prices fell after OPEC+ increased their output, and gold was hovering near a week-high. Rodrigo Catril is a senior currency strategist with National Australia Bank. He said that there are signs of weakness within the U.S. The STOXX 600 index rose 0.4% to start the day in Europe. This is the second consecutive day that the STOXX 600 has been up. The question is: Is bad news bad (economy slowing) or is it good (Fed moving toward rate cuts)? Mohit Kumar, a Jefferies strategist, said that the answer depends on whether or not bad data is being reported and what is priced in. "A modest slowdown in the economy is good news, as the Fed should ease up more." A sustained and sharp increase in unemployment rates, however, would be a concern as it could affect growth and earnings. The dollar rose modestly against the Japanese yen, reaching 147.6. Meanwhile, the euro dropped 0.25%, to $1.1543. The dollar index (which tracks the greenback's value against a basket six other currencies) rose 0.34% following a two-day slide. The soft U.S. payroll data on Friday added weight to the argument for a Fed cut, and gained another level of drama when President Donald Trump fired the head of the labour statistics department responsible for these figures. CME Fedwatch says that the odds of a rate cut in September are now at 94%. This is up from 63% on July 28. The market participants expect at least two quarter point cuts before the end of the year. The news that Trump will fill the Fed governorship early has also added to concerns about politicization in interest rate policy. Trump threatened again to increase tariffs on Indian goods above the 25% level announced by Trump last month, due to India's Russian oil purchases. New Delhi called Trump's attack "unjustified", and pledged to protect its own economic interests. Brent crude futures are down 1% to a two-week low of $68.05 per barrel. It remains to be determined if the primary goal is the threat of secondary sanction on India's funding of Russia. This move could be a way to increase the U.S.'s leverage over India, forcing it to allow agricultural imports into its country or to commit to buying U.S.-produced energy. Investors are eagerly awaiting the earnings reports of Walt Disney, Caterpillar and other companies this week. Palantir Technologies' revenue forecast was raised for the second time in this year, as it expects to see sustained demand for artificial intelligence services. U.S. index futures rose between 0.2-0.4% at the opening of trading, suggesting a modest increase. The data released on Tuesday revealed that the business activity in euro zone increased at a faster rate in July than it did in June. However, it remained slow. A separate UK survey showed British Businesses In July, the company reported its largest decline in new orders for almost three years and reduced staff by the most in six-months. The service sector in Asia's two largest economies has shown resilience. S&P Global's final services purchasing managers’ index (PMI), which measures the performance of the service sector in Japan, grew to 53.6 from 51.7 in the previous month. This was the largest increase since February. China's service sector expanded last month at the fastest rate in over a year. Bitcoin fell 0.6%, to $114.235, and gold rose 0.1%, to $3.375 an ounce.
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Ameren gets the green light on $1.6 billion Illinois transmission project
Ameren Corp.'s Illinois division said Tuesday that it had received approval to upgrade and build 380 miles worth of power lines in 13 counties of the state, as part of an $1.6 billion energy access project. Construction will begin this year, and should be completed by 2029. U.S. utilities are under increasing pressure to increase grid capacity due to the rising demand for electricity and the shift towards cleaner energy sources. This vital project will ensure energy access for residential and business growth, said Shawn Schukar. He is the chairman and president of Ameren Transmission Company of Illinois. The Illinois Commerce Commission has approved the route via a Certificate of Public Need and Convenience, according to the company. The project involves the construction of three new substations as well as upgrades to others. Most of the work is done along existing infrastructure corridors in order to reduce land use. Ameren Illinois provides electricity to 1.2 million customers and natural gas to more than 800,000. This is spread across 1,200 communities. (Reporting by Arunima Kumar in Bengaluru; Editing by Sahal Muhammed)
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Indian village swept away by flash floods, four dead and more than 50 missing
India Today TV reported that a village located in the Himalayan region of northern India, Uttarakhand, was flooded by raging floodwaters. At least four people were killed and over 50 more are missing. Local authorities reported that teams from the army and disaster response units had arrived in the area. Workers were trying to rescue those trapped under debris and sludge. Television news channels showed water and debris rushing down a mountain and sweeping homes and a roadway. According to a video shared by the office of the chief minister, some houses were buried in mudslides that cleaved Dharali Village. The Central Command of the Indian Army posted on X that "a massive mudslide hit Dharali Village in the KheerGad Area near Harsil triggering a rapid flow of debris and a water through the settlement." Uttarakhand has a high risk of flooding and landslides. Some experts attribute this to climate change. Minimum 200 people Died in 2021 When flash floods in the state wiped out two hydroelectric projects. The warming climate is causing many of the 10,000 glaciers to retreat in the Indian Himalayas.
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Palm oil exports improve with bargain-buying and improved export prospects
The price of Malaysian palm oil futures rose on Tuesday due to bargain-buying and a stronger Dalian palm olein. Traders also expect better export data in the first half August. At the close, the benchmark palm oil contract on Bursa Derivatives Exchange for October delivery was up 103 Ringgit or 2.46% at 4,290 Ringgit ($1,015.38) per metric ton. The contract dropped 1.37% during the previous session. A Kuala Lumpur based trader reported that bargain buying helped to support prices across the board, while Dalian palm oil recovered from its lows of yesterday. The trader said that the market would also look for an improvement in export numbers in the first half August. Dalian's palm oil contract, which is the most active contract, rose by 2.84%. Chicago Board of Trade soyoil prices rose 0.17%. As palm oil competes to gain a share in the global vegetable oil market, it tracks the price changes of competing edible oils. Five dealers reported that India's imports of palm oil fell in July due to contract cancellations. However, soyoil exports to India surged at a three-year peak, thanks to low prices and delayed shipments since June. A survey shows that Malaysian palm oil inventories will rise for the fifth consecutive month, reaching their highest level in nearly two years. Production growth is outpacing exports. The price of oil was not changed much as traders weighed the rising OPEC+ production and concerns about a weakening global demand against President Trump's threats towards India regarding its Russian oil purchases. Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures. The palm ringgit's trade currency strengthened by 0.24% versus the dollar. This made the commodity a little more expensive for foreign buyers. ($1 = 4.2250 ringgit)
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Official: EU won't change methane regulations but there is flexibility
A senior EU official stated on Tuesday that although the EU's methane regulations has been discussed in U.S. negotiations, the EU "firmly" stands behind its legislation. Officials said that energy questions still need to be clarified in a statement about EU-U.S. Trade that will be finalised shortly. The EU will require importers of gas and oil to report and monitor the methane associated with their imports starting this year. The second biggest cause of climate changes is methane emissions from leaky gas pipelines. The official stated, "We are firmly behind this regulation. It is the first one of its kind." We can be flexible with the implementation of the regulations, for example in reporting. "We will not open the regulation. We stand by it." EU Countries in June Consider asking Brussels to simplify laws. Officials in Brussels have already conducted technical workshops with their gas suppliers to make sure the rules do not pose any problems. Reporting by Julia Payne and editing by Ingrid Melander
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Gold nears two-week high amid Fed rate cut bets
The dollar rose on Tuesday, but gold prices were still near their two-week highs on the back of growing expectations that U.S. rates will be cut in September. By 0919 GMT, spot gold was down 0.2%, at $3,365.45 an ounce. Bullion reached its highest level since July 24 at $3,385.29. U.S. Gold futures were unchanged, at $3.423.20. The dollar index increased by 0.2%, from the one-week low reached earlier in session. This reduced gold's appeal for other currency holders. U.S. data released on Friday revealed that employment growth in the United States was slower than expected in July. Payroll revisions for both May and June reduced previous job totals by a staggering 258,000. CME FedWatch now places the odds of a cut in September at almost 88%. This is up from 63% just a week ago. The markets are pricing at least two quarter point reductions for this year. What gold probably needs to move up from here is (another) weaker U.S. Economic data... Gold is also watching who U.S. president Trump names to be the next Fed governor, possibly as the successor to Federal Reserve chairman Jerome Powell," says UBS commodity analyst Giovanni Staunovo. The uncertainty was heightened by Trump's decision to dismiss the chief of labour statistics following the disappointing payrolls report. He also announced that he would appoint another Fed governor. Trump has also threatened to raise tariffs on Indian products beyond the 25% increase last month, citing India’s continued purchase of Russian oil. In a low interest rate environment, gold, which has long been viewed as a safe-haven asset in times of economic and political uncertainty, performs very well. Kelvin Wong is a senior market analyst at OANDA. He said: "I do not expect traders to push up above $3,450 unless there's a clear catalyst." Silver spot rose by 0.2%, to $37.46 an ounce. Platinum fell 1.3%, to $1.312,30, and palladium lost 1.6%, to $1187.04. Sibanye Stillwater, a South African miner, has asked the United States for consideration of imposing a tax on Russian imports of palladium to ensure the viability and long-term sustainability of U.S. supplies.
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The scorching heat of Iran has forced the closure of banks, public buildings and other institutions
Local media reported that a heatwave in Iran has caused the country's power and water supplies to be stressed. The authorities ordered the closing of banks and public buildings in the capital Tehran on Wednesday. Nine of the 31 provinces in the country are on orange alert until at least next week. Some areas will see temperatures as high as 50 degrees Celsius. In the summer, Iran experiences high temperatures. However, reservoirs have been depleted by repeated droughts. Also, electricity is not able to keep up with air conditioners in offices and homes. Local media reported on Tuesday that the closure of banks, government buildings and other public structures on Wednesday will also affect the capital and the provinces of Mazandaran Markazi Yazd Semnan Kermanshah Razavi Khorasan and Yazd. The state broadcaster IRINN reported that Tehran Governor Mohammadsadeq Motamedian said: "Due the rising temperatures and the need to optimise and manage energy consumption, all executive agencies will be closed Wednesday." All medical facilities, selected private companies and bank branches will be open. Last week, Iranian president Masoud Pezeshkian said that excessive water use in the country was unsustainable and could lead to severe shortages of water by September. This would include Tehran. In July 2024 during another heatwave in Iran, many provinces decided to close their public offices to conserve water and electricity. (Reporting and editing by Helen Popper; Dubai Newsroom)
Secretary of State for India says India will offer incentives to steelmakers in order to promote decarbonisation
The federal secretary of steel announced on Friday that India has a number of incentives in place to encourage the production of green-colored steel and to drive the decarbonisation efforts of local steelmakers. India wants to reduce its greenhouse gases emissions.
India, after China the largest steel producer in the world, is working on a "green steel" policy to reduce carbon emissions from the production and procurement of this key building material.
Sandeep Poundrik, speaking at a recent industry event, said: "We're trying to do many things to encourage green steel... including working on a project... where we'll try to support industry decarbonisation."
The government will hopefully approve it soon."
Poundrik said that firms would be encouraged to produce greener steel and use renewable energy.
The official also said that the government was working to mandate a certain percentage green steel in all state-funded projects.
India last year defined green steel to be steel that emits less than 2,2 tonnes of carbon dioxide per tonne of production. (Reporting by Neha Arora in Mumbai and Hritam Mukherjee in Bengaluru; Editing by Mrigank Dhaniwala)
(source: Reuters)