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Seattle shooting leaves two dead and five injured, according reports
Local news reports said that at least two people were killed and five others, including an?2-year old child, 'were injured' in a shooting on Sunday, which took place during a food festival in downtown Seattle. The police said that multiple people were shot in the United States. On Sunday evening, the downtown area of the city was a scene of violence. Seattle police posted on social media X that "Please avoid the Area" in reference to the?Seattle Center where the Bite of Seattle festival was taking place. Police are investigating an incident. Multiple shooting victims. Seattle Center shot at by gunfire. Seattle Fire Department, Seattle Times and KOMO local TV reported that two people had been killed and five others?injured. The Seattle Times reported that witnesses heard several shots around 6 p.m. (0100 GMT).
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Bankers claim that India's UltraTech Cement is planning to raise its largest rupee debt financing.
Two bankers familiar with the matter said on Monday that India's UltraTech Cement was in discussions?with merchant banks and arrangers about raising?its largest rupee bond funding. It is looking to tap the debt markets before the central bank makes its policy decision next Thursday. Sources who requested anonymity because the talks were still private said that the country's biggest cement producer by production capacity planned to raise 50 billion rupees (517.80 million dollars) in bonds with maturities of two-and a half years, three and a half years, and five years. The target is?15 billion each for the two shorter tranches, with annual coupons of 7.22% and 7.23% respectively, as well as 20 billion rupees on the five-year tranche, at 7.25%. Bankers stated that UltraTech wanted to close the deal before the Reserve Bank of India made its monetary policy announcement on August 5, The company didn't respond to an email asking for a comment after regular business hours. Bankers said that the bonds were rated AAA by Crisil, and they may be in demand from mutual fund managers looking for high-quality credits. UltraTech will raise 10 billion rupees in March 2025 through bonds with a coupon of 7.34 percent per year. The country has outstanding bonds worth 35 billion rupees, of which 5 billion rupees are due in the next month. Cement maker reported nearly 17% increase in first-quarter profits earlier this month. It used its'scale and market position' to absorb higher fuel costs related to the Middle East Conflict better than smaller competitors.
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As oil prices fall, the Australian and New Zealand dollar rates are rising.
The Australian and New Zealand dollar strengthened on Monday, as hopes for a diplomatic resolution to the Middle East conflict sent oil price?lower. This eased inflation concerns and helped boost global bond markets. The Aussie gained 0.2%, to $0.7001, following a 0.3% gain on Friday. It is little changed from last week. The Aussie has moved away from its three-month-low of $0.6867. Resistance is seen at the one month peak of $0.7026. New Zealand's dollar rose 0.2%, to $0.5798, after finishing last week down by 1%. This was primarily due to losses against the Australian dollar. The 200-day moving median of $0.5822 is seen as a resistance. The Aussie rose 0.1% to NZ$1.2068 against the Kiwi after gaining 1% in one week. The gains were supported by a stronger-than-expected ?jobs report that led markets to almost fully price in a fourth interest-rate increase from the Reserve Bank of Australia this year. Investors will be focusing on the quarterly inflation data due Wednesday. Economists expect that the trimmed measure of core inflation will rise by 0.9% in the second quarter and bring the annual rate up to 3.7%. This would still be above the RBA target range of 2%-3%, but lower than the central bank's expected 3.8%. Paul Bloxham is the chief economist of HSBC. He said that if core inflation does not surprise in a significant way this week, then RBA will be able hold steady. "However inflation is still high and the job market is likely to still be considered 'a bit tight' despite loosening. The board may still decide that tightening of the monetary policy is necessary. The markets have lowered the likelihood of a RBA rate increase next month from 40% to 30%, while a November hike remains "around 80%" priced in. RBA Governor Michele Bullock will speak on Tuesday, and she could adopt a hawkish tone in light of the recent 'escalation' of the Gulf Conflict. Australian government bonds recovered from heavy losses last weekend. After a surge of 23 basis points, the yield on three-year bonds fell by 9 basis points, to 4.635%. The yield on 10-year bonds dropped by 7 basis points, to 5.015%. New Zealand's key two-year swap rate fell 6 bps, to 3.7219% after a 20 bps jump last week. Markets now expect 3.0% in December and 3.5% at the beginning of next year.
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CXMT chipsets soar 470% in Shanghai debut to lead China's valuation
?Shares in CXMT Corp soared 470% at?their Shanghai debut?on Monday, in Asia's largest IPO of the year. This catapulted the chipmaker to China's top stock market by valuation despite a selloff of global tech stocks. Stocks began trading at 49.50 Yuan, compared to the 8.66 Yuan sale price per share. CXMT's market cap increased sharply in the first minutes, from $85.5 million during the IPO to 3.3 trillion yuan (487.31 billion). The shares briefly fell to 38.11 Yuan before quickly recovering and were trading at 49.51 Yuan by 0236 GMT. CXMT's explosive debut has made it the most valuable listed company in China. It now surpasses the previous market leader,?Industrial and Commercial Bank of China. CXMT's initial rally easily?surpassed the more than doubling of China?Resources New Energy following its $3.6 billion IPO earlier this month in China. Investors will be able to gauge how much money they are willing pay for an iconic Chinese chip company, while local markets continue to navigate the volatility that has followed a selloff triggered by AI, and as money is shifted between high-growth tech names and safe sectors. CXMT (formerly ChangXin Memory Technologies) raised 57.92 bn yuan (8.6 bn dollars). The proceeds could reach 66.61 bn yuan, if the over-allotment feature is used in full. CXMT's IPO price was 579 billion yuan, or $85.5 billion, before?the exercise of the over-allotment options. This made it one China's biggest listed semiconductor companies. CXMT’s expanded share capital is largely locked up, so only 6.73% was available for trading at the time of listing. The initial float of a small amount could lead to a large number of price fluctuations and high turnover. HSBC Qianhai Securities stated in a report last week that 'the offering could drain the liquidity from the broader Chinese market both before and during its debut, but past technology listings have suggested a recovery could occur the following trading day.
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Oil slips and shares, bonds, and bonds gain a cautious profit
The share markets responded with a cautious response Monday, as the pause in fighting around the Gulf brought oil prices down. This lowered inflation risks while boosting bonds in anticipation of a busy week filled with central bank meetings and earnings reports. Iran announced on Sunday that it would cease its "own" attacks as long as the United States followed suit. The U.S. army was reportedly worried about the dwindling supply of ammunition. Yemen's Houthis, who are aligned with Iran, have still continued to attack Saudi oil installations on the Red Sea Coast, a threat to another vital waterway for the global oil trade. Sally Auld is the group chief economist of NAB. She said, "It appears that developments in the Middle East moved in a more positive direction this weekend. This lends some credence to the idea that oil prices above $100 per barrel seem to encourage de-escalation from both sides." Brent crude fell 5.2% to $91.73 per barrel during the lull of fighting over the Strait of Hormuz, while U.S. Crude dropped 5.4% at $84.45. Oil's decline has eased inflation concerns and caused markets to reduce the likelihood of Federal Reserve rate increases. Markets indicate that the central bank will meet on Wednesday, and a rate hike is around a 1 in 3 chance. However, most analysts do not believe Chair Kevin 'Warsh will be supportive of such a move. Goldman Sachs analysts noted that investors see the outcome of July's meeting as "unusual uncertain" because of recent divisions within the Fed, Warsh’s position is unclear and some of re-escalation of tensions with the?Iran took place during the blackout. "There is likely to be at least one dissident in favor of a hike this week, but the majority of voters are unlikely to do so after the June inflation figures were softer." Bank of England meets on Thursday, while Bank of Japan meets on Friday. Both are expected to remain cautious and hold their ground despite the softer inflation data for June. Earnings from TECH BULLS S&P futures rose 0.7% and Nasdaq futures 1.1% as equities found comfort in the decline in oil prices and yields. In Europe, EUROSTOXX Futures rose by 0.4% while DAX Futures rose by 0.6%, and FTSE Futures were flat. South Korea's index of chips-heavy stocks, the Chip Index, fell 1.1%. The broadest MSCI index of Asia-Pacific stocks outside Japan remained unchanged. Chinese blue chips rose 0.4% after?chipmaker CXMT Corp surged by 470% on its Shanghai trading debut, having raised $8.6 billion through Asia's largest initial public offering. According to data from?LSEG, IBES, about a third of S&P500 companies will report earnings this week. Earnings are expected to increase by 26.5% compared to last year. Even blockbuster results might not be enough to satisfy investors, given the high expectations and the mounting concern over AI capex. A WSJ article reported that Nvidia had been in talks with OpenAI to provide a $250 billion backstop as part of a project for a data centre. Tech darlings Microsoft, Meta Platforms, Amazon, iApple, and Qualcomm are among the companies reporting. Also included in this list are a number of industrial, healthcare, and defence stocks. The U.S. Q2 GDP is a highlight, with growth accelerating to 1.5% on an annualised basis after a softer start to the year. The 'daily' also includes the PCE price index for June, personal income, consumption, weekly unemployment claims, Q2 Employment Cost Index, and July Michigan Consumer Sentiment. The Euro Zone's schedule includes the flash Q2 GDP (Gross Domestic Product), July economic sentiment, consumer confidence and flash inflation. The drop in oil prices helped the 10-year Treasury yields to fall by 4 basis points, from 4.63% to 4.63%. This also pushed the dollar down. The euro rose 0.3% to $1.1408 while the dollar fell 0.2% against the yen, to 163.54. The Singapore dollar grew after the central bank of the country unexpectedly tightened its monetary policy, allowing the currency to appreciate at a faster rate. The drop in yields has helped gold that does not pay interest to climb by 1.3%, reaching $4,103 per ounce.
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Iron ore slumps as China's demand falters, despite stimulus hopes
Iron ore prices fell on Monday as a result of a seasonally 'faltering' demand, and the thinning margins in steel production in China, the top steel consumer. This tempered hopes that Beijing would announce stimulus measures later this week to boost China's economy. Iron ore, the most traded contract at China's Dalian Commodity Exchange(DCE), recovered earlier losses and was trading up 0.07% to 743.5 Yuan ($109.89). As of 0251 GMT, the benchmark August iron ore traded on Singapore Exchange was down?0.61% at $97.55 per ton. After steel demand seasonally declined and margins shrank, several Chinese steelmakers began equipment maintenance. Data from Mysteel revealed that the average daily hot metal output, which is a measure of iron ore consumption, fell for the third consecutive week by 0.6% compared to the previous week. This was the lowest level since April 3. Analysts at Everbright Futures stated in a report that the market is focusing on the Politburo meeting scheduled for end-July, when policymakers are expected to strengthen countercyclical policies and introduce incremental measures to stabilise economic development. Coking coal and coke both increased in price, but other steelmaking?ingredients remained mixed. The benchmarks for steel on the Shanghai Futures Exchange mostly moved up. Rebar gained?0.33%; hot-rolled coils advanced?0.43%; wire rod gained 0.21% while stainless steel fell 0.24%.
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Gold prices rise on US-Iran truce; Fed decision is imminent
Gold prices rose by a little more than 1%?Monday, as oil prices fell due to a pause of Middle?East hostilities, easing inflation fears. Investors awaited U.S. Federal Reserve policy announcement. By 0200 GMT, spot gold had risen 1.4% to $4110.56 an ounce. U.S. Gold Futures rose 1% to $41,112.10. Gold is clearly a beneficiary of today's dual price action of oil and the U.S. Dollar, which both dropped due to de-escalation expectations between the U.S. Tim Waterer said that lower oil prices are easing inflation concerns. The U.S. Dollar Index was down by 0.3%. This made greenback-priced gold more affordable to other currency holders. Iran will cease its attacks as long the United States also does,?a senior Iranian official said on Sunday. This comes at a time when the United States has paused its bombing campaign, after Donald Trump's advisors informed him that they had run out of targets. They also expressed concern about the depletion of the U.S. nuclear arsenal. The oil price was down by more than 4% on the day. Oil prices have risen since the beginning of this conflict, causing inflation fears and central bank rate increases. Gold, despite being traditionally seen as a hedge against inflation, has been impacted by this. Higher rates increase the opportunity costs of holding the metal. "Longer-term, I remain constructively optimistic about gold. Waterer said that the fate of gold is closely tied to where oil prices are headed. The path upward is likely to be volatile and heavily influenced geopolitical headlines until a more durable peaceful takes hold. Investors and economists are also focusing on the Federal Reserve meeting, which is taking place this week. They expect rates to remain unchanged. According to the CME FedWatch Tool, traders are pricing in an 80% chance that rates will rise in September. (Reporting by Ashitha Shivaprasad and Pablo Sinha in Bengaluru; Editing by Subhranshu Sahu and Ronojoy Mazumdar) (Reporting and editing by Subhranshu Sahu, Ronojoy Mazumdar and Pablo Sinha from Bengaluru)
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Russell: Crude oil futures prices are a measure of market adaptability and not a sign of Iran peace.
Since the beginning of the Iran War, there has been a debate about whether crude oil futures accurately reflect the stress in the physical markets of oil and refined products or if traders are blindly optimistic peace is on the horizon. The Iran War between the United States of America and?Iran is continuing on its volatile and unpredictable course, with renewed hope that an 'interim pause' in the strikes could be possible. This small glimmer of optimism was sufficient to drive Brent futures down in the early Asian trading on Monday. Brent futures fell by nearly 5%, to $92.06. The Strait of Hormuz is still at best contested. Shipping volumes have dropped through the narrow waterway after surging in mid-June during a three-week ceasefire between the Trump Administration and Tehran. After the collapse of the deal and the renewed U.S. attacks on Iran, Tehran responded with a series of strikes against U.S. bases and vessels trying cross the Strait of Hormuz. Tehran appears to have also successfully activated the Houthi allies to target Saudi oil tankers that are trying to cross the Bab el-Mandeb Strait. This eliminates a route that Saudi oil could have taken to reach refineries on the Asian continent via the Red Sea port Yanbu. Alternative routes include a much longer and more complex route via the Suez Canal. This involves partial discharging of cargoes, and the use of the SUMED Pipeline due to?draft restriction in the canal. Exports of physical crude from the Middle East are still constrained. Only limited volumes pass through the Bab el-Mandeb and Hormuz straits. A lasting peace agreement also seems distant? with the United States of America and Iran being far apart in key areas and having a deep mistrust for one another. UKRAINE LESSON This situation seems to call for a much stronger reaction than what has been seen in the oil futures market. Brent?dropped to $70.14 per barrel during the short ceasefire on July 2. It then rallied by 45%, reaching a high price of $102.00 on 23 July before falling back. This may seem like a big rally, but it is still well below the $139.13 peak Brent achieved in the weeks following the Russian invasion of Ukraine in February 2022. At the time, this event raised concerns about the disruption of Russia's exports, as they were the second largest crude shipper. These fears were not justified, as the crude markets quickly adapted. They rerouted Russian oil towards buyers in China and India, while Europe increased its imports of American oil?and African oil. The Iran conflict differs in that there is a real disruption of crude supply. And the longer the situation persists, the more the buffers created by inventory drawdowns as well as China's reduction of imports are strained. The argument is that crude futures are not high enough to reflect the risk of a prolonged disruption in Middle East crude supply, which appears to be more likely. It's likely that the crude futures market is pricing adaptability, rather than pricing the worst-case scenario or even the best-case scenario of lasting peace. The market has effectively bet that it will handle disruptions through rerouting of flows and increasing alternative sources. The Suez Canal is a more expensive and time-consuming way to transport Saudi Arabian Red Sea crude oil from Yanbu into Asia, but if the market demands it, then this is what will be done. Other smaller workarounds, like Iraq sending fuel oil to Turkey are also emerging. These, when combined, help reduce the loss of crude and products worth around 10 million barrels a day (bpd). It is possible that the market has bet that traders of crude oil and refined products will be able mitigate the worst effects of the Iran Crisis. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of the columnist, an author for.
Reindeer herders battle power line needed for Norway's environment objective
It is minus 6 degrees Celsius in Arctic Norway and some 30 Indigenous Sami herders have collected 1,500 reindeer in a confine, arranging who owns which animal after the herds blended while grazing up on the Finnmark plateau.
It is also a chance to discuss their big concern: a. prepared 54 km (34 mile) power line to provide Western Europe's. largest melted natural gas plant.
The line will be developed on pastures the herders use in. summer, in seaside areas where they say towns, cabins, roads,. existing power lines and other facilities have currently. intruded on the land they use.
We can not pay for to lose more summer pastures, said Nils. Mathis Sara, whose herd graze between May and October in the. area where the line is due to be built this summer season.
We have nothing else to distribute, he stated as he drove to. the corral in Jergul, near the winter season pasture on the plateau,. some 1,700 km (1,000 miles) from the capital Oslo.
As the temperature increases from the current 6 C (21 degrees. Fahrenheit), they make the preparations to move to the summertime. pasture, 250 km (150 miles) away near the city of Hammerfest.
The power line will help Norway cut its CO2 emissions, with. the federal government devoting to cut the nation's emissions by 55%. compared to 1990 levels by 2030.
With electrification, Hammerfest LNG would utilize eco-friendly. power from the grid - most of Norway's electricity production. originates from hydropower - instead of gas to run its 5 turbines.
The Equinor plant is the second-largest single. source of emissions in the nation, generating some 850,000. metric lots of CO2 per year, or 2% of Norway's annual emissions.
It exports enough gas to cover the usage of an. estimated 6.5 million homes, mainly in Europe. The. electrification would assist lengthen the production life of the. field and export more gas to markets.
The dispute shows the difficult options countries. need to make to cut greenhouse gas emissions and power future. growth, frequently including contending use for land.
CLEAN ENERGY
In time, Hammerfest LNG is due to use power from onshore. wind farms that authorities want to build to increase the power. supply to Finnmark as an entire, and Hammerfest LNG in specific,. the region's future biggest power user.
They are due to be constructed on reindeer summer season pastures too.
It is idiotic we are going to damage nature for the. environment, stated Johan Isak Eira, a reindeer herder from a. district where one such windfarm is expected.
The federal government disagrees.
We need to create brand-new jobs, allow more economic activity. Future tasks will depend on tidy energy, not diesel-powered. generators, Deputy Energy Minister Elisabeth Saether said.
For this government, it is not an option to provide a. categoric 'no' to new power and new power lines in reindeer. rounding up areas.
She stated the Skaidi-Hammerfest power line would have an. impact on herding, but the activity might take place in line. with article 27 of a 1966 global treaty safeguarding. Native minorities' rights to enjoy their own culture.
In a landmark ruling in 2021, Norway's Supreme Court stated. that right was being broken with the building of two. onshore windfarms in central Norway, leading to protests from. Sami groups, green activists and Greta Thunberg. The windfarms. remained however the herders were granted payment and the. pledge of land.
This is not such a huge obstacle that herders will be. not able to practice their culture, Saether stated.
ENVIRONMENT MODIFICATION
Reindeer herders disagree. Sara's reindeer district group,. which numbers around 100 herders, is planning legal action to. stop building and construction of the line. The herders say the impact of the. power lines will disrupt the natural behaviour of the animals.
Reindeer avoid the location where power lines are developed. You. can make them pass under, but they won't remain there, herder. Eira stated. The structures make them scared and they do not like. the noise they make.
Female reindeer calve on summertime pastures and the young consume. turf to build up enough weight to survive on lichen on winter season. pastures, when temperature levels can drop to minus 40 C (minus 40 F).
Herders are under pressure on a number of fronts, consisting of from. climate change. They now need to supplement the animals' feed as. milder weather condition has actually resulted in ice layers forming from rain. showers that then freeze - suggesting the reindeer can not constantly. dig for the lichen with their hooves.
Statnett, the grid operator and the contractor of the power. line, said it would deliver a sustainable job that takes. care of both individuals and nature and stated power lines when put. into operation just impacted the reindeer to a minimal level.
Equinor, the operator of Hammerfest LNG, states it comprehends. the uncertainty dealt with by herders.
There could be predicaments when we are developing energy. facilities near to the reindeer herders, said Kjetil. Myklebust, the head of the task at Equinor.
Still, we are confident that it is possible to develop the. region's grid in excellent discussion with the affected parties.
On the land it is responsible for, close to the plant,. Equinor will build a power cable television in a tunnel under Hammerfest,. rather than above ground, so that it does not impact summertime. pastures there.
More broadly, herders state society should lower usage. or find options to cut emissions, such as carbon capture,. which the federal government declined as too expensive.
What I don't get about the energy transition is that to. make it happen, we need to damage nature, said Sara. To me. that does not make good sense.. ($ 1 = 10.6091 Norwegian crowns)
(source: Reuters)