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US delays ruling on Gulf of Mexico Whale Protections by Two Years
According to a court filing, an agreement reached with environmental groups will allow the Trump administration to delay the final rule by two years. The rule would protect the endangered Rice's Whale in the Gulf of Mexico oil and gas drilling area. The National Marine Fisheries Service of the U.S. Commerce Department and the green group Natural Resources Defense Council have agreed to give the government agency until 15 July 2027 to finalize the geographical area that is considered critical to the survival of the Rice’s whale. The agreement was filed with the U.S. District Court for the District of Columbia, on July 3, and it was seen by Monday. The agreement stated that "NMFS is continuing to work diligently on this complex Final Rule." "NMFS requires more time to evaluate the science and analyze the impact on the Rule," the agreement said. NMFS will coordinate its efforts in this process with the academic and scientific communities. NMFS officials could not be reached for comment. NRDC also did not have any immediate comment. It represents the environmental group Healthy Gulf, in a legal case over the designation of so-called "critical habitat". The oil and gas companies of the region have welcomed the delay. The former administration of Joe Biden in 2023 had proposed restrictions for drillers in the northern Gulf. We strongly support the decision of extending the deadline for the finalization of the Rice's Whale critical habitat. Erik Milito said that extending the deadline was both necessary and responsible, given the amount of work needed to make this rule perfect. (Reporting and editing by Mark Porter, David Gregorio and Nichola Groom)
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Zelenskiy appoints new Prime Minister, and taps official who spearheaded US mineral deal
On Monday, Ukrainian President Volodymyr Zelenskiy asked Yulia Shvyrydenko to head a new cabinet. This set the stage for an upcoming political reshuffle in Ukraine's ongoing war with Russia. Zelenskiy suggested that Ukraine's Prime Minister, Denys Schmyhal, be appointed as Defence Minister, as he described him as having the qualifications to do such a job. The nominations require parliamentary approval. They came at a time when diplomatic efforts to end the four-year war have stagnated and Ukraine is trying to revitalize its cash-strapped economic system and build up an indigenous arms industry. Zelenskiy, writing on X, said: "We... discussed tangible measures to boost Ukraine’s economic potential, increase support programs for Ukrainians and scale up our local weapons production." He said that "in pursuit of this objective, we are initiating transformation of the executive in Ukraine", adding that he proposed Svyrydenko to lead the government, and "significantly renew" its work. Svyrydenko is a 39-year-old economist who has been serving as the first deputy prime minister of Ukraine since 2021. She was a key player in the recent negotiations of a mineral deal with the United States. In his video nightly address, Zelenskiy described Shmyhal as having "vast" experience that is "valuable for the position of Minister of Defence of Ukraine." He said: "This is the exact area where maximum resources are concentrated, as well as maximum tasks and responsibility." Shmyhal is the prime minister of Moldova since March 2020. He has been in office since 1991, when the country gained independence from Moscow. Zelenskiy had suggested that Rustem Umerov, the Ukrainian ambassador to Washington Zelenskiy said could be appointed last week, would replace him. Ukraine depends on its Western allies for financial assistance to finance social and humanitarian spending, as the majority of state revenues are used to fund the army and the domestic weapon production. FINANCING ARMS INDUSTRIES Ukrainian officials also called on Kyiv’s partners to assist in financing the country’s arms industry. This could be done through joint defense projects. Zelenskiy stated that Ukraine will continue to "increase production of its weapons and develop their own defence projects - our own Ukrainian as well as jointly with our partners". Svyrydenko wrote on X that she would deregulation, reduce bureaucracy and protect businesses, as well as reduce non-critical spending, to "concentrate all state resources" towards defence and post-war reconstruction. She said, "The state apparatus does not have the right to waste our country's resources and potential." "Ukraine should be one of the most powerful economies in Europe." (Reporting and writing by Dan Peleschuk, with editing by Kevin Liffey; Gareth Jones; Ron Popeski, Cynthia Osterman, and Cynthia Osterman).
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Sudanese RSF forces killed almost 300 in North Kordofan according to activists
Sudanese activists reported on Monday that the paramilitary Rapid Support Forces killed nearly 300 people during attacks that began in North Kordofan State on Saturday. RSF is fighting against the Sudanese Army in this area. It's one of the main frontlines in a civil conflict that has been raging since April 2023. The army has gained control over the east and center of the country while the RSF works to consolidate control in the western regions including North Kordofan. Emergency Lawyers, a human rights organization, said in a Monday statement that the RSF attacked several villages around Bara on Saturday. Bara is under the control of the paramilitary. More than 200 people have been killed in Shag Alnom village by arson and gunshots. They said that looting raids in other villages resulted in the deaths of 38 civilians. Dozens more were reported as missing. The group claimed that the RSF had attacked Hilat Hamid the next day and killed 46 people including children, pregnant women, and other vulnerable individuals. According to the United Nations, more than 3,400 people have been forced to flee. Emergency Lawyers, blaming the RSF leadership, said: "It is clear that these villages targeted were empty of military objectives. This makes clear the criminality of these crimes committed in total disregard for international humanitarian law." Human rights groups and the United States have accused RSF of genocide, war crimes and crimes against humanity. The RSF has carried out violent raids on territory that it controls across the country. The RSF leadership has said that it will bring to justice those who are found guilty of such crimes. Sudan's civil conflict has caused the largest humanitarian crisis in the world, causing more than half of the population to go hungry and spreading diseases like cholera throughout the country. The humanitarian response has been stretched by a global cut in aid. (Reporting and editing by Sharon Singleton, Sandra Maler and Nafisa eltahir)
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Draft shows EU wants to cap farming subsidies in budget overhaul
Brussels will propose capping the EU subsidy a single farm can receive every year in an effort to redistribute massive farming subsidies to smaller businesses. A draft European Commission proposal, seen by, revealed this. The document will be part of the Commission’s proposal for the next budget of the European Union, which is due to appear on Wednesday. The EU's massive Common Agricultural Policy (CAP), which provides farming subsidies, is worth approximately 387 billion euro ($451 billion) today. This represents a third the entire budget of the EU for 2021-2027. According to the draft, the Commission's proposal would try to redistribute subsidies to smaller farms by capping the amount of income-based support that they can receive at 100,000 euros per annum. The amount of money paid per hectare would be gradually reduced for those who receive the most. The draft stated that, for example, if a farmer receives area-based income assistance above 20,000 Euros per year, their payments will be reduced by 25%. Payments above 50,000 Euros per year will be cut in half, and payments over 75,000 euro by 75%. It is not the first attempt by Brussels to cap subsidies and limit payments to large landowners or agroindustrial companies. In the previous CAP approximately 80% of payments were made to only 20% of beneficiaries. Previous proposals were rejected by EU countries concerned about their agricultural industries. The new budget for the period 2028-2034 must be approved by the EU countries as well as the European Parliament. A spokesperson for the Commission did not respond immediately to a comment request on the draft. It could be changed before publication. The draft would establish EU-wide, overarching green targets, which farmers must achieve to qualify for subsidies. However, it would also oblige countries to set local, additional conditions. The draft stated that "the new CAP will be a simplified and more targeted Union Common Policy, with greater flexibility for farmers, and a move from requirements to incentives." The draft didn't confirm the size of a new CAP. The core of the new CAP would remain direct income support to farmers. This would be "ring-fenced", meaning that it could not be used for anything else. The proposal would combine the CAP's two-pillar structure to one fund, a move that is opposed by influential European farmers' group COPA-COGECA. ($1 = 0,8574 euros) Reporting by Kate Abnett Editing Tomaszjanowski
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US Judge delays the transfer of Argentina's 51% YPF stake in order to allow an appeal
A U.S. Judge on Monday temporarily halted the enforcement of her order requiring Argentina's 51% stake in the oil and gas company YPF as partial satisfaction of a $16.1 Billion court judgment. The U.S. District judge Loretta Preska, while criticizing Argentina's actions and extending the deadline for the completion of the turn-over by three days until July 17, has pushed back Monday's deadline. She stated that the delay was only to allow Argentina to file a complaint with the 2nd U.S. Circuit Court of Appeals of Manhattan. Argentina filed an Emergency appeal On July 10, the court heard a case. Preska refused to extend the stay. She stated that Argentina "continues its delay and circumvention of its obligations" in relation to the $16.1 billion judgement, citing legislation to prevent the YPF turn over. The Manhattan-based Manhattan judge wrote: "The Republic has abused court accommodations and will not receive additional ones." Requests for comment from an attorney and Argentina's representatives were not immediately responded to. The three-day extension is a temporary relief to the cash-strapped nation, which warned that its economy would be unstable if forced to sell the YPF stake. Argentine president Javier Milei is trying to boost foreign currency reserves, rein in inflation and deal with a heavy debt burden. The dispute arose after Argentina decided in 2012 to take the YPF stake away from Spain's Repsol, without making a bid to minority shareholders Petersen Energia Inversora or Eton Park Capital Management. Burford Capital is representing these shareholders. Burford Capital has stated that it expects to receive between 35% and 73% respectively of Petersen and Eton Park’s damages. Burford's U.S. lawyer and Burford did not respond immediately to requests for comments on the Monday order. Preska has ordered Argentina to pay $1.71 billion and $14.39 billion in September 2023 to Petersen. Argentina appeals this judgment. The U.S. Foreign Sovereign immunity Act protects the YPF shares from being sold. In an emergency appeal, Argentina stated that a YPF turn-over would irreparably damage its sovereignty, violate the international law, and expand U.S. court's power in a wrong way. It said that it would also be unfair to give its controlling stake in country's biggest energy company up now because it would probably be irrevocable, even if they won the case. Burford claimed that Argentina's years of evasion, combined with a commercial immunity exception, was the reason for YPF's turnover. (Reporting and editing by William Mallard, Richard Chang, and Jonathan Stempel from New York)
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Russian rouble, stock market gain after Trump's statement on Russia
The Russian rouble recovered its losses against the dollar, and climbed against China's Yuan after U.S. president Donald Trump warned that he would impose a "very serious tariff" on Russia in 50 days if a deal was not reached on settling pacifically. According to LSEG's data based upon over-the counter quotes, as of 1605 GMT the rouble had fallen 0.2% at 78.10 against the dollar, after reaching 78.75 earlier in the day. The rouble has gained 45% against the US dollar since the beginning of the year, according to LSEG data based on over-the-counter quotes. Trump announced on Monday new weapons for Ukraine and threatened to hit Russian export buyers with sanctions. He expressed frustration at Russian President Vladimir Putin over the lack of progress made in ending the conflict in Ukraine. Artyom Nicholasev, an analyst from Invest Era, said that Trump's performance was below expectations. "He gave the Russian leadership 50 days to come up with an offer and extend the negotiations track. Trump is fond of delaying and extending such deadlines. The rouble gained 0.8% against the Chinese Yuan, which is the most commonly traded currency in Russia. It had fallen by more than 1% Friday. According to the Moscow Stock Exchange, after Trump's remarks, Russian stocks rose by 2.7%. (Reporting and editing by Richard Chang; Gleb Bryanski)
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Britain and Czech Republic will work together to develop small nuclear plants
The UK and Czech Republic announced on Monday that they will explore the possibilities for small modular reactors (SMRs). This partnership could lead to Rolls Royce SMR exporting up to six units into the east European country. Last month, Britain pledged 2,5 billion pounds for the construction of SMRs. It hopes that this will help to increase energy security while helping the country achieve its climate targets and create export opportunities. The SMRs are made in factories with small parts that can be transported by barges or trucks. They are assembled faster and cheaper than large nuclear plants. In a statement issued by the UK Department for Energy Security and Net Zero, which also cited his Czech counterpart, UK Prime Minister Kierstarmer stated: "By working together with our Czech colleagues on small modular reactors we are supporting British engineering, strengthening the industrial base and putting the UK into a leading position for exporting the technologies of tomorrow." Rolls Royce won the contract to build Britain's SMRs last month. Great British Energy, Britain's state owned energy company, is expected to sign the contract and select a location for new plants later this year. Last year, Czech electricity producer CEZ announced that it would acquire a stake in Rolls Royce’s SMR business of around 20%. It also planned to install up to three gigawatts in the country. This is equivalent to six units. Each unit can power approximately one million homes. Starmer and Czech Premier Peter Fiala are hosting a roundtable discussion as part of Fiala's London visit, in order to promote closer links for trade and investment between the two nations. (Reporting by Susanna Twidale, Editing by Aidan Lewis).
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Earnings and tariffs are a focus for the market, as well as inflation data.
MSCI's global index of equity prices edged lower on Monday, while U.S. Treasury rates edged higher. The latest U.S. Tariff threats kept investors on their toes as they awaited inflation readings due later this week and the beginning of the earnings season. After Donald Trump threatened to impose a 30 percent tariff on imports of goods from the European Union, Mexico and Canada starting August 1, the euro briefly fell to its lowest level in almost three weeks. The dollar index remained stable. The threat of tariffs caused European shares to fall on Monday. The EU announced that it would suspend countermeasures against U.S. Tariffs until early August, and continue to push for a negotiated solution. However, Germany's Finance Minister called for a firm response if levies were implemented. This week the U.S. earnings period begins, and the banks are leading the way. According to LSEG, S&P profits are expected up 5.8% compared to the previous quarter. Now, it's all about the earnings season. They don't know what to expect. They want to remain optimistic. Robert Pavlik is a senior portfolio manager with Dakota Wealth, Fairfield, Connecticut. He said that earnings seasons are usually better than expected. However, he also noted that trading values were "a little expensive compared to the 5-year average". The money manager said that people are waiting to see what happens next, given the recent announcements of tariffs. At 10:54 am on Wall Street, the Dow Jones Industrial Average dropped 53.36 points or 0.12% to 44,318.15, while the S&P500 fell 6.66 points or 0.11% to 6,253.09. The Nasdaq Composite increased 18.05 points or 0.09% to 20,603.58. The MSCI index of global stocks fell 0.12% or 1.07 points to 921.49, while the pan-European STOXX 600 fell 0.26%. POWELL PRESSURE Trump has increased political pressure to ease interest rates more aggressively, despite the fact that U.S. Federal Chairman Jerome Powell had signalled patience on this issue. Kevin Hassett, the White House's economic adviser, warned Trump over the weekend that renovation costs at the Fed headquarters in Washington could be a reason to fire Powell. Trump said that Powell's resignation would be great. The yield on the benchmark 10-year U.S. notes increased by 1 basis point, to 4.433% from 4.423% at the end of Friday. Meanwhile, the 30-year bond's yield rose by 2.2 basis points, to 4.9791%. The yield on the 2-year bond, which is usually in line with expectations of interest rates for the Federal Reserve fell by 1.8 basis points, to 3.896% from 3.914% at late Friday. Investors are waiting for the U.S. consumer prices data for June due Tuesday. They will also be watching for any upward pressure coming from tariffs. The data on producer prices and import prices, which are due this week, will provide a glimpse of the impact that tariffs may have on supply chain costs. Retail sales figures will also give a good indication of consumer health. The dollar index, which measures greenbacks against a basket including the yen, euro and yen, increased 0.09% at 97.98. The dollar rose 0.07% against the Japanese yen to 147.5. The Mexican peso fell 0.65% against the dollar to 18.767. Mexican President Claudia Sheinbaum is confident that a deal can be reached by the deadline of August. Bitcoin reached the $120,000 mark for the first and last time. It was up by 1.48% to $120,891.36. Oil prices dropped on Monday, after reaching their highest level in the last three weeks. Investors were watching for further U.S. sanction against Russia and tariffs that could affect global supply. U.S. crude dropped 0.64% to $68.01 a barrel. Brent was down to $70.07 a barrel, 0.41% lower on the day. The gold price has stabilized following a three-week high on Monday, as attention was focused on U.S. data and trade negotiations. Silver prices have climbed to their highest level since September 2011, Spot gold dropped 0.41% to $3341.63 per ounce. U.S. Gold Futures increased 0.04% at $3,357.20 per ounce. (Reporting and editing by Christopher Cushing; Sharon Singleton, Ali Williams, and Ali Williams.
Stocks struggle after Meta moodswings, tepid United States GDP
Stocks snapped a threeday winning streak on Thursday as frustrating projections from Facebook and Instagram owner Meta hammered the tech sector, while FX markets watched Japan's yen sink through 155 per dollar for the very first time considering that 1990.
Warm U.S. GDP information pushed Wall Street lower at its open however with more 'Big Tech' revenues scheduled for later it was Meta's downturn that soured the state of mind one of the most.
It plunged practically 15% in afterhours proceed Wednesday. Japan's tech-heavy Nikkei then slid 2%, followed by a 1%. slide in European tech, as dealers seemed to forget all. about the previous day's Tesla-driven optimism.
In an earnings-packed week, tech bellwethers are in the. spotlight, with Alphabet, Microsoft and Intel. also due to report after Thursday's closing bell.
If Meta is a guide, it appears the marketplace is just not. tolerant of in-line-- if you've had a good run through Q1 & & Q2. you either blow the lights out, or the market takes its pound of. flesh, said Chris Weston, head of research at Pepperstone.
Robert Alster, Chief Financial Investment Officer at Close Brothers. Asset Management, included that Mark Zuckerberg's discuss Meta. requiring to spend to keep up in the AI arms race had actually been another. major factor.
European incomes and M&A deals were flooding in too.
London's FTSE 100 struck another record high as. UK-listed miner Anglo American surged 11% on a $39. billion buyout offer from Aussie rival BHP, while. Deutsche Bank and BNP Paribas both edged up. after the euro zone's most significant lending institutions posted upbeat. first-quarter earnings.
US DOWNTURN
Beyond business incomes, financiers were absorbing the. sharper-than-expected slowdown in first quarter U.S. economic. growth.
GDP increased at a 1.6% annualized rate, the Commerce. Department's Bureau of Economic Analysis said, mainly supported. by consumer costs. Economists surveyed had actually anticipated. a brisker 2.4%.
Despite the expected GDP slowdown in 2024, there are no. impending signs of a recession, stated Mutual of America Capital. Management's chairman and president Stephen Rich.
Recent hotter-than-expected inflation reports have actually pushed. back and lowered expectations for Federal Reserve rate of interest. cuts, with markets now pricing in roughly a 70% possibility of a. very first decrease in September. They are not even fully convinced. there will now be another one this year, having actually expected around. 6 cuts at the start of the year.
The moving expectations of U.S. rates have raised Treasury. yields and the dollar, casting a shadow on the currency market. Versus a basket of currencies, the dollar ticked. fractionally greater to 105.89 after the GDP data.
The Japanese yen, which is sensitive to U.S. Treasury yields, has felt the impact of the dollar's ascent and. is down 9% this year, the worst carrying out G-10 currency.
It was fetching 155.70 per dollar, its weakest in 34 years,. in early afternoon in European and post-GDP information in the U.S. It. is also now strongly past the most recent line in the sand traders had. drawn for Japan to intervene in the markets.
Tokyo has still not stepped in, and I reiterate that it. does look like there will be no intervention so long as. USD/JPY's climb continues in a reasonably non-volatile fashion,. stated RBC Capital Markets' head of Asian FX method, Alvin Tan.
The Bank of Japan (BOJ) started its two-day rate-setting. conference on Thursday, with expectations that it will keep its secret. short-term rate of interest target the same.
Attention will be on what BOJ Guv Kazuo Ueda's states. about the yen's battles. Ueda will want to avoid any repeat of. an episode in 2022, when remarks by his predecessor triggered a. big yen tumble that forced Tokyo to spend an estimated $60. billion attempting to stabilise it again.
At this stage, if they were to step in, they may as. well just throw their cash into the sea, said Rob Carnell,. head of Asia-Pacific research study at ING. For all the great it will. do, other than in the extremely short run.
Criteria bond prices were a touch lower after the U.S. information. while both Brent and U.S. crude were hardly moved. at $88.10 and $82.87 per barrel respectively. Gold, which. hit a record high previously this month, inched approximately $2,330 an. ounce.
(source: Reuters)