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Circ will build a $500 million cotton and polyester recycling plant in France
The French government and European Union have given Circ, a U.S. textile recycler, the backing to build a $500-million plant in France. This will be the world's first industrial facility to recover cotton and polyster on a large scale. The French government announced on Friday that the Saint-Avold plant in the north-east of the country, will have the capacity to process 70,000 tons per year once it begins operating in 2028. It will employ 200 workers. Peter Majeranowski, chief executive of the company, said that the plant, which is funded by a combination of equity and debt and a 450 million euro ($504.09 millions) investment, will seek grants and guarantees, including the Strategic Projects Guarantee, from the French government. The EU is working to achieve net-zero emission by 2050. However, efforts have been scattered. Majeranowski stated that the new factory will mark a turning-point for the industry. He said that this will be the first industrial-scale polycotton recycling plant in the world. "Most clothing is made from a mixture of cotton and polyester, which makes it difficult to recycle. This facility is an important milestone." According to the U.N., the fashion industry accounts for 10% of the global greenhouse gas emissions. It also uses more energy that the aviation and shipping industries put together. It is also one of the biggest consumers of water, and a polluter of freshwater sources. Many companies are working on technologies to recycle millions of tons polycotton waste that is created each year. This comes as retailers strive to improve their sustainability credentials, and to meet stricter regulations. Circ uses hydrothermal technologies to break down polyester without damaging cotton so that both can then be recovered and reused in the same procedure. Circ, a recycling company owned by Inditex's Zara and Patagonia, has already been used as a source of recycled material for brands such as Inditex. The factory was built in partnership with Worley, GEA and Andritz. Majeranowski stated that the goal is to use the factory as a template for future plants. Producers and suppliers are eager to assist fashion firms achieve their climate goals. He said, "We've had a lot interest from around the world. From South Asia, East Asia and the States, Canada, Australia, of course."
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TSX poised to gain six weekly points amid trade optimism
The main Canadian stock index remained unchanged on Friday, and investors expect more trade agreements to be reached amid the easing of tariff tensions and softening U.S. inflation figures. The Toronto Stock Exchange S&P/TSX Composite Index was down 0.04% to 25,888.06 point. Donald Trump, the U.S. president, said on Friday that U.S. officials would send letters in the next few weeks to other countries outlining the costs of doing business in the United States. He did not give any additional details. "In Canada ,...there is an expectation that we will be in a position to renegotiate trade agreements with them, and return to a positive relationship with the U.S.," said Ian Chong. The 90-day pause between the U.S. - China tariff dispute and the bilateral trade agreement signed by the U.S. with the UK this week helped to ease concerns about the recession and sparked hope for future deals with the U.S. Chong said that the markets had moved from a position of extreme fear to one of overbought, and it was remarkable how much volatility had decreased since Liberation Day. In May, the data showed that consumer sentiment in the U.S. fell further, but inflation expectations for one year rose. The markets will also be focused on the remarks of Federal Reserve policymakers. At least two officials including Richmond Fed president Thomas Barkin are scheduled to speak later that day. The TSX mining subindex rose 0.5%, as the gold price dropped by more than 2%. This was their worst week for six months. Lithium Americas' stock fell 7.5% in corporate news after it filed for an initial public offering (IPO) of approximately $1 billion. (Reporting from Sanchayaita in Bengaluru, editing by Vijay Kishore.)
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Wall Street falls after US data is weak, but oil prices are recovering.
Wall Street fell on Friday, but global stocks were still set to gain weekly gains as positive earnings helped sustain the rally that was sparked by an agreement between the U.S. and China. Oil prices are still low and continue to support stocks and bonds. A University of Michigan study showed that U.S. consumers' sentiment continued to deteriorate in May, as inflation expectations for the next year increased. Households remained worried about the impact of President Donald Trump’s aggressive and often erratic trading policy. The yields on U.S. Treasuries dropped after data showed that housing starts were lower than expected. Wall Street's major indexes fell on Friday but are still on course for a strong weekly gain. MSCI's global stock index retreated by 0.09%. The Dow Jones Industrial Average dropped 0.03%. The S&P 500 fell 0.07%. And the Nasdaq Composite declined 0.27%. Investors cheered the tariff truce that was reached between the United States of America and China, which greatly reduced the risk of global recession. Nabil Milali is a Multi-Asset & Overlay strategist at Edmond de Rothschild. He also pointed out that news of the European Union's and U.S.'s agreement to intensify their talks on a potential trade agreement and a better-than-expected results season. "The fact we are getting more positive surprises for European stocks is very good." The STOXX 600 pan-European index gained 0.13%, marking its fifth consecutive week of gains. U.S. import price Unexpectedly rose In April, a rise in capital goods costs offset the cheaper energy products. "We are at the beginning of a transition in trade." In April, it was unclear what the impact would be. However, we do know that uncertainty has pushed residential builders out of balance, said Jeffrey Roach Chief Economist at LPL Financial, Charlotte, North Carolina. The main MSCI index of Asia-Pacific stocks ex-Japan has risen more than 3% in the past week. Meanwhile, S&P 500 has gained 4.5%. The oil price has been choppy all week. It rose on the U.S. China deal before dropping 2% on Friday due to increased supply pressure caused by an OPEC+ production increase and the prospect for an Iranian nuclear agreement. Brent futures rose slightly on Friday and are expected to finish the week higher. The low oil prices, by recent standards, are supporting expectations of a slowing inflation. Also, the U.S. data on Thursday, which showed no dramatic impact of U.S. Tariffs, helped both stocks and bonds. Market bets on the Federal Reserve's easing this year have increased to 57 basis point from 49 bps. Kenneth Broux is head of corporate FX and rates research at Societe Generale. This put a halt to the Fed's hawkish re-pricing. The 10-year Treasury benchmark yield dropped 2.2 basis points, continuing the drop of Thursday. The yields on government bonds in the Eurozone were also lower. Walmart, the largest retailer in the world, has announced that it will have to raise prices this month because of the high tariff costs. Milali, Edmond de Rothschild’s Milali, said that the relief was only temporary as the tariff shock remains "very significant." The dollar has edged up against a basket currency. Gold spot fell by 2.12%, to $3,171.20 per ounce. This erased the previous session's gains.
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Gold players maintain their faith despite a trade truce-induced decline
The gold price has fallen by almost 10% since its record high of just over $3,500 an ounce, in April. However, analysts remain bullish due to the strong support that is underlying for this metal. On Friday, spot gold prices were trading at around $3,180 per ounce, putting them on course for their worst six-month period. The U.S. & China reached a truce on the harsh tit for tat tariffs that they announced in April. This triggered a rise in risk sentiment, and a decline in the demand for safe haven assets like gold. Gold's appeal was also dented by the dollar index and benchmark U.S. 10-year Treasury yields, which rose in response to this news. Donald Trump, the U.S. president, said that the United States were close to a nuclear agreement with Iran. Ricardo Evangelista is a senior analyst with brokerage firm ActivTrades. He said: "We are seeing a less volatile geopolitical climate globally, and less trade aggressiveness from the U.S. This is driving investors away from safe havens like gold, and increasing risk appetite on the market." However, there is still a lot of risk and uncertainty. It's still too early to predict the end of gold prices. Gold has risen 21% this year, after a 27% rise in 2024. Nitesh Sha, commodities strategist for WisdomTree, said that gold prices will likely rise rather than fall in the future due to other factors such as central bank demand. Data from the World Gold Council last week showed that the inflow of physical gold ETFs in April was at its highest level since March 2022. China-listed funds led the way. Official data released by the People's Bank of China earlier this month showed that China's central banks added gold to their reserves for the sixth consecutive month. Ole Hansen is the head of commodity strategy for Saxo Bank. He said: "I wouldn't surprise if data indicate that this gold correction we've been seeing right now was cushioned by new and continuing central bank demand." "We must see economic data to confirm that tariffs are having a negative effect on the economy. This will not only increase pressure on the Fed, which is a positive thing. Hansen said that it may also lead a new demand for gold as a safe haven. Data released on Thursday revealed a slowdown of the U.S., the largest economy in the world, in April. This included a drop in the producer prices and manufacturing output as well as a decrease in retail sales. The markets expect the U.S. Federal Reserve will cut interest rates twice this year at least, starting in September. Gold that does not yield tends to do well in low-rate environments. The U.S. Dollar is expected to weaken and central banks are still buying gold, according to UBS analyst Giovanni Staunovo.
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Gold on course for its worst week since November as trade tensions cool
The gold price dropped by more than 2% Friday, and was set to have its worst week since November as a result of increased risk appetite due to the U.S. China trade agreement. Gold spot fell by 1.7%, to $3.185.87 per ounce at 1007 ET (14.07 GMT), and has fallen 4.2% this week. Prices reached a new record of $3,500.05 last month amid increased tariff tensions. U.S. Gold Futures fell 1.2% to $3188.70. The thawing out of the U.S. - China trade war has rekindled risk appetite in the broader market. This shift has caused profit-taking by futures traders in the gold market and triggered a wave of liquidation lasting a week, according to Jim Wycoff. Washington and Beijing announced earlier this week a 90-day break while they worked out the details of ending their titt-for-tat trading war. The U.S. announced that it would reduce "de minimis fees" on smaller shipments coming from China. After a period of uncertainty, Wall Street's main three indexes have opened higher this Friday. Bullion is a hedge for economic and geopolitical instability. Bullion tends to perform well in an environment with low interest rates. In the United States, the recent data on inflation, coupled with economic data that was weaker than expected, has fueled bets for more Federal Reserve rate reductions this year. The markets expect that the U.S. Central bank will implement two rate reductions, starting in September. Spot silver fell 1.3%, to $32.27 per ounce. It also dropped over 1% in the past week. Wycoff said, "It appears to me that silver's price could rise if the bull market in gold continues." Palladium slipped 0.3% and platinum 0.6%, respectively. Both metals are also expected to decline by a similar amount each week. (Reporting by Sarah Qureshi in Bengaluru; Editing by Shailesh Kuber)
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Andy Home: Copper's US tariff is crushed by a wave of imports
The threat of a tariff by U.S. president Donald Trump on imports of copper has caused a massive relocation of metals, flooding the U.S. and draining other markets. Since the Trump administration announced a Section 232 investigation in February into U.S. Imports of the Red Metal, traders have been rushing metal into the country in order to lock in a possible tariff windfall. The physical reaction has been so strong that it has caused futures arbitrage to collapse between the CME Contract and the London Metal Exchange Price (LME). WAITING FOR TRUMP The copper market is betting on a 25% U.S. import tariff, which will match the existing rates for steel and aluminum. Tariff trade is evident in the premium that the CME contract for U.S. products cleared by customs commands over the LME international price. Three weeks ago, the cash premium was around $1,600 per ton. This is 17% higher than the LME price. Since then, it has fallen to just $600 per metric ton or 6% of London's price. The timing of tariffs is still uncertain, but it's not like anyone hasn't expected them. Section 232 investigations have a 270 day deadline. White House officials, however, promised a resolution "in Trump time" - whatever that may mean. The price differential between the U.S. & Europe is being narrowed by the volume of metals arriving in the U.S. METAL ON MOVE Morgan Stanley analysts report that U.S. imports have increased to 40,000 tonnes per week from 14,000 tonnes per week in late March. Metals have been flooding into CME's warehouses for the past two years, with most of them arriving in New Orleans. CME's copper stock has increased by 81% from the beginning of the year, and now stands at a record high of 168.563 short tons. CME spreads are in contango unlike those of the LME where the benchmark cash to three-months is spread. As stocks decline, the backwardation has been shifted to $30 per ton. LME copper inventories have fallen to an all-time low of 179.375 tons. 40% of the remaining inventory is awaiting physical loading. The raid on LME stock has focused on copper, which can be delivered in exchange for CME contracts or traded with consumers to get CME brands. The LME stock is now largely made up of Russian and Chinese brands. At the end of April, they accounted for 98% the 129.200 tons of warranted inventories. The U.S. trade war has reached China. Shanghai Futures Exchange inventories have fallen from their Lunar New Year peak of 268,337 tones to 108.142 tons. China's refined copper imports fell by 5% year-overyear and 20% quarter-overquarter in the period January-March as the metal was diverted to America. SCRAP FLOWS SLOW The impact of the U.S. tariff on copper scrap has compounded the regional imbalances. China was the primary destination of U.S. copper shipments, importing 441,000 tons in 2013. The trade has halted due to the uncertainty surrounding both a tariff on copper and the larger reciprocal tariff situation. The U.S. has a growing mountain of refined steel, and a surplus of copper that is recyclable. If the trade dispute between the two parties can be de-escalated, then it is likely that some of these materials will become available after 90 days. Picture Distorted The global copper exchange inventory has not changed much in the past year. Stocks are hovering at around 500,000 tons, down only 1,700 tonnes from the beginning of January. There has been a massive redistribution from around the world of metals to the U.S. This process will continue until the Trump Administration decides whether or not to impose an import tariff on copper and what level. The CME-LME arbitration should theoretically stabilize at the announced rate of tariff, but it's clear that this won't happen overnight due to the increasing volume of inventory on the U.S. side of the trade. The higher the U.S. Copper Mountain will grow the longer the White House takes to decide. These are the opinions of a columnist who writes for.
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Von der Leyen: EU preparing new sanctions to increase pressure against Russia
Ursula von der Leyen, President of the EU Commission, said that the European Union was working on a package of new sanctions to increase pressure against Russian President Vladimir Putin regarding his war in Ukraine. Under pressure from U.S. president Donald Trump, the European Political Community Summit (which includes non-EU nations) convened in Tirana, Albania's capital, while Russian and Ukrainian negotiators gathered in Istanbul to hold their first direct talks on peace in over three years. The EU has adopted 17 sanctions against Russia, the latest this week. Diplomats report that it is becoming increasingly difficult to achieve the required unanimity within the 27 member states of the EU to pass new measures. Von der Leyen, speaking of Putin, said that we needed to put more pressure on him. We are currently working on a new set of sanctions. The main elements of this package include, for example: a prohibition on Nord Stream, further listing of the shadow fleet, a lower cap on crude oil prices and more sanctions against the Russian financial sector. Gazprom, the state-owned Russian company, built Nord Stream 1 & Nord Stream 2 consisting of each two pipes to transport natural gas under the Baltic Sea to Germany. In 2022, they were damaged by a series blasts. Officials and diplomats said that to be successful, the new major sanctions threatened by European leaders in the last few days will need U.S. backing. Putin suggested direct talks with Ukraine on Sunday in Turkey. However, he rejected the challenge of Ukrainian President Volodymyr Zelenskiy, who wanted to meet personally. Instead, he sent a team consisting of middle-ranking officials. Zelenskiy, speaking to other European leaders at the Tirana summit, said that Ukraine's top priority during the Istanbul talks is to achieve an unconditional ceasefire in order to establish a foundation for future negotiations on a peace agreement. NATO Secretary General Mark Rutte stated that Putin "made an error by sending a delegation of low level". Keir starmer, British Prime Minister, said that "what we saw yesterday and over night is yet another evidence that Putin does not care about peace" as he arrived to the Tirana Summit. Starmer stated that Ukraine's allies should act as one, a sentiment shared by many leaders present at the summit. Starmer stated that "we'll work on that again today in order to make it clear that a ceasefire must occur, but that if there is no ceasefire then we will all act together to impose sanctions." Friedrich Merz, the new German chancellor, has said that Europe needs to increase its defense capabilities and that it must work with the United States in order to put an end to the war in Ukraine. Merz stated, "We must do everything we can to keep Americans on our side." We cannot replace or substitute what the Americans do for us in our continent. Reporting by Andrew Gray in Tirana and Fatos bytyci Additional reporting by Benoit van Overstraeten Ingrid Melander Bart Meijer William James and Julia Payne Editing and writing by Alex Richardson, Frances Kerry and Frances Kerry
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Why Trump's Gulf trillions aren't as big as the headlines
Donald Trump, the U.S. president, concluded his Gulf tour Friday after securing what the White House claims is more than $2 trillion in combined deals for the U.S. It is not clear how that number was arrived at. A total of $700 billion is calculated by adding up all the deals that were announced. Deal inflation is common on major visits, even for a president who prides himself in being an expert at making deals. The trip included large orders for Boeing planes, contracts to purchase U.S. defense equipment, agreements on data and technology, and other contracts. Experts in finance and diplomacy say that the headline numbers have been exaggerated to show the extent of the cooperation between the two sides. According to an analysis, many of the agreements signed by Trump during his Gulf tour were non-binding memos of understanding. According to 'calculations, the total value of defence sales with Saudi Arabia and Qatar is close to $730 Billion. It is impossible to independently verify if additional agreements have been signed without public disclosure. Justin Alexander, Director at Khalij Economic, said: "The figures are inflated. Possible spending is counted in as actual. And most of the good deals would have been made regardless of who was the White House." According to the Arab Gulf States Institute, Trump claimed that Saudi Arabia agreed to $450 Billion in deals during his first term. However, actual trade and investments flows between 2017 and 2020 amounted less than $300 Billion. "DEALMAKER in Chief" When asked about the figures, White House spokesperson Anna Kelly replied: "President Trump, the Dealmaker in chief, is a great news story for American workers and companies." The President is quickly fulfilling his promise to Make America Wealthy and Strong Again. Saudi and UAE officials didn't immediately respond to our requests for more information. Memorandums are less formal and don't always result in cash transactions. Saudi Aramco announced, for instance, that it had signed 34 agreements with U.S. firms worth up to $90.00 billion in AI infrastructure, among other areas. Most of the deals were not binding MoUs, and had no value attached. Aramco had announced its agreement to purchase 1.2 million tonnes per year of LNG from NextDecade for a period of 20 years months before, but it was still included on Wednesday's list. The White House stated that agreements signed with Qatar Emir Sheikh Tamim Bin Hamad Al-Thani will "generate economic exchanges worth at least $1.2 billion", including a $96-billion sale to Qatar Airways. It did not provide a detailed breakdown Qatari official says that Qatar's sovereign fund has made an "economic commitment" to invest $500 Billion in the U.S. Economy over the next ten years. However, this pledge does not include any concrete plans. Firas Macksad is the managing director of Eurasia Group. He said that if history is any guide, deals which have not delivered a real return will be abandoned after they have served their political purposes. Washington has signed a $142bn arms deal with Saudi Arabia, which covers purchases by more than 12 U.S. firms, and what Trump called a $42bn defence agreement with Qatar. During his first presidential term, Trump announced an arms sale of about $110 billion during his trip to Saudi Arabia. These deals are difficult to track because they last for many years. In 2018, only $14,5 billion in sales had been made, and Congress began questioning the deals after the murder of Saudi Journalist Jamal Khashoggi. Beyond the Numbers The news, despite the vagueness in the timelines and commitments, has helped some stocks on the market. Deutsche Bank attributes a 4.16 percent increase in Nvidia shares on Wednesday to a MoU announced by Saudi Arabia's state oil giant Aramco. There were also new, concrete deals made by U.S. firms. Qatar Airways has placed an order worth $96 billion for 160 Boeing aircraft with GE Aerospace engine. Etihad Airways in Abu Dhabi will spend $14.5billion to purchase 28 Boeing jetliners with GE Aerospace engines. Boeing's shares rose 0.64% after the Doha announcement on Wednesday. The real benefits of Trump's trip go beyond the numbers. The three Gulf states have also secured U.S. backing for issues they consider important. Saudi Arabia has moved closer to achieving its long-held ambition to develop a nuclear industry for civil use. Trump delinked normalisation of relations with Israel from the Saudi Arabian government's desire to do so. This is a significant win for Saudi Arabia. The UAE signed a framework which puts it on the path to acquiring advanced semiconductors in order to fulfill its long-held ambition to be a leader in AI. Qatar was assured by Trump that the U.S. will protect it in case of an attack. Hasan Alhasan is senior fellow for Middle East Policy at the International Institute for Strategic Studies. The Gulf States are completing unprecedented deals in business and arms sales, and taking their bilateral relations to a new level.
Rightward shift after election could restrict future EU climate policies
A more rightwardleaning European Parliament will make it more difficult to pass enthusiastic EU climate policies, however most of Europe's present worldleading green policies are likely to stay put, lawmakers, officials and analysts stated. Provisional lead to the European Parliament election on Sunday night revealed centrist celebrations holding a majority, however gains for rightwing and farright parties sceptical of the EU's. Green Offer package of ecological policies, and heavy losses. for Green celebrations.
I don't believe that we'll be rolling back on (climate). policies. However I do believe that it will be more complex to get. brand-new policies off the ground, Bas Eickhout, head of the European. Parliament's Greens legislator group, informed .
EU climate procedures over the next 5 years will depend upon. the inbound European Commission, which is accountable for. proposing EU laws. But the newly-elected European Parliament. will get a say on every new green policy.
Sunday's election result signals tougher mathematics to approve. new EU climate steps.
All new policies will be more difficult to pass. But backsliding is. very not likely, Krzysztof Bolesta, Poland's secretary of state. for environment, informed .
It is possible that new aspiration will be postponed, mainly. for populistic factors, concurred Julian Popov, who up until April. was EU member Bulgaria's environment minister.
That might have repercussions for an approaching 2040 EU. environment target, needed to guide the EU towards its 2050 net zero. emissions target. The EU Commission has actually recommended the 2040 goal. need to be an ambitious 90% emissions cut, however it needs approval. from both EU countries and the Parliament.
The upcoming European Commission and Parliament will likewise. face tough decisions on whether to present new policies to. push industries towards that 2040 target.
That includes farming, a sector whose emissions have barely. fallen considering that 2005. However after months of protests throughout Europe by. angry farmers, there is little political hunger to target the. sector with brand-new rules, particularly if the cost of abiding by. them would drive up food rates for people currently dealing. with the biggest dive in living expenses in a generation.
Shares in renewable energy companies were
knocked
lower by concerns the election results could slow the green. energy shift.
Wind turbine makers, Vestas and Nordex,. were down more than 3% on Monday. Orsted was down. 0.5%.
NO BIG U-TURN
While brand-new environment steps might face a harder ride, a. full-scale reversal of the dozens of EU climate policies passed. in the last 5 years would be lawfully challenging. Those policies - which include renewable resource targets and a. strengthened carbon rates routine on power and market - are. repaired into EU law and already being rolled-out across the bloc's. 27 member states. Many are currently working. EU emissions are down by nearly a. 3rd from 1990 levels, and Europe is setting up wind and solar. energy capacity at record speed.
Still, the election campaign saw mounting calls from the. right to scrap some Green Offer policies - with a prime target. the EU's 2035 restriction on new petrol and diesel cars and trucks. That policy has. a 2026 review provision, on which the Parliament will get a say.
It was an ideological recklessness, which absolutely must be. remedied, Italian Prime Minister Giorgia Meloni told online. magazine Open last week. Three EU diplomats singled out the 2035 automobile policy as one that. European Commission President Ursula von der Leyen will deal with. substantial pressure to deteriorate, including from some lawmakers in. her centre-right European People's Celebration who desire it ditched. Von der Leyen requires support from a majority of lawmakers in the. new European Parliament to win a 2nd term.
However broad environment policy rollbacks are not likely, authorities and. experts stated. That's partially because the EU's existing environment. steps add up to deliver its 2030 environment target - to cut net. greenhouse gas emissions 55% from 1990 levels - which national. federal governments and legislators both authorized into EU law.
There may well be changes in specific pieces of. legislation, however what will be important to see is how this. adds up, said Mats Engström, senior fellow at the European. Council on Foreign Relations think-tank.
DON'T CALL IT A 'GREEN' DEAL. Contrary to the last EU election in 2019, when millions of young. environment protesters took to Europe's streets, this year's. campaign saw environment modification took over by issues including. migration, financial troubles and struggling European markets. Fulfilling the EU's 2030 environment target will require financial investments of. 1 trillion euros per year, a dive of around 356 billion per year. compared to 2010-2020, according to the European Investment. Bank.
Buying local industries was a project pledge throughout. the political spectrum, as competition hones with the U.S. and China to produce green tech like low-carbon steel and. electrical automobiles. Some analysts said this focus would see the EU pass more funds. and policies to support climate-friendly jobs - but with the. concentrate on assisting market, rather than being green and. clean.
If it has to do with scaling up production of green. technologies here in Europe, then that might be performed in the name. of 'industrial competitiveness' and not for the environment, said. Linda Kalcher, Executive Director at think-tank Strategic. Viewpoints. It might be that we see the rhetoric moving, however the action. on the ground being the exact same, Kalcher stated.
(source: Reuters)