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Three people are killed by flash floods in a resort town in New Mexico, and dozens of others are trapped in their homes and cars.
A state emergency official, as well as a statement from the village, said that torrential rains caused flash floods to occur in New Mexico on Tuesday. At least three people, including two children, were killed, while dozens of others were trapped in their homes and cars in Ruidoso's resort village. The village's website said that the children, aged 4 and 7, and a male were washed downstream and found later dead. Rescue operations are underway, it added. The video footage, which was widely shared on social media, showed a house ripped apart from its foundations and careening through the brown, muddy water of the Rio Ruidoso flood, while slicing trees in the process. "I have seen the video." Danielle Silva, spokesperson for New Mexico Department of Homeland Security and Emergency Management said: "We don't know who was inside the house." Silva reported that emergency teams from local law enforcement agencies and the National Guard performed at least 85 rapid-water rescues around Ruidoso. Many of these people were trapped in their cars or homes due to flood waters. Silva reported that the river rose quickly to a record-breaking 20.24 feet (6.22 metres) during the flood's peak. As the waters receded in the evening hours, authorities began looking for survivors among the debris. Four days ago, a flash flood along the Guadalupe River triggered by heavy rainfall killed at least 110 people and left scores of others missing. Silva stated that the severity of debris flows in New Mexico was increased by a landscape that was stripped of vegetation by a wildfire, followed by flooding which eroded soil. Ruidoso is a popular ski and summer resort located in the Sierra Blanca mountains of southern New Mexico. It's about 115 miles south of Albuquerque. Steve Gorman reported from Los Angeles, Nilutpal Timsina contributed additional reporting and Michael Perry and Bernadettebaum edited the story.
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After Trump's tariff plan of 50%, copper prices fall outside the US
The London Metal Exchange (LME) and Shanghai Futures Exchange (SFE) saw a decline in copper prices on Wednesday, as the potential U.S. tariff on copper signaled the end of a long-running arbitrage trade which had pulled the metal off global markets. The COMEX Copper Futures rose more than 12% on Tuesday to a new record high. The U.S. Secretary of Commerce, Howard Lutnick, said that tariffs would be likely in place before the end July or August. The LME's three-month contract for copper fell by 1.35% at $9,658 a metric ton as of 0700 GMT. On the SHFE, the most traded copper contract dropped 1.36%, to 78400 yuan (US$10,920.28). The announcement was like a thunderous boom in the middle night. A 50% tariff is higher than expected. Since the U.S. announced an investigation in February into the imports of red metal, traders have been shipping copper from warehouses all over the world in anticipation of higher prices. COMEX inventories are now at their highest levels since 2018. These trades may be numbered, given the short time left to move copper. This could free up supply outside of the U.S. Michael Wu, an analyst for Shanghai Metals Market said that there is virtually no one in Asia who wants to buy copper to deliver to the U.S. at this time. He added that the only shipments likely to meet the deadline are those from Latin America. According to ING, tariffs are expected to negatively impact LME prices once they are implemented. This is because U.S. buyers will likely start to use their inventory. Goldman Sachs stated that "as in the past, this initial higher tariff rate can be used as a negotiation anchor, followed up by concessions or exemptions". LME tin dropped 0.68% to $33,170 per ton. Lead fell 0.39% at $2.048.5. Nickel fell 0.35% at $14,990. Zinc eased by 0.15%, at $2.716.5. Aluminium was unchanged at $2.584.5. SHFE nickel dropped 1.2% to 119.140 yuan per ton. Tin eased to 262,890, zinc rose to 22,120, lead climbed to 17,175 and aluminium grew by 0.1% to 20.515 yuan. Click or to see the latest news in metals, and other related stories.
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Iron ore gains on declining shipments but mixed China data cap gain
Iron ore futures rose for the second session in a row on Wednesday. This was largely due to falling shipments, and a resilient demand. However, mixed factory data from China, the top consumer, curtailed gains. The daytime trading price of the most traded September iron ore contract at China's Dalian Commodity Exchange was 0.68% higher, closing at 736.5 Yuan ($102.59). As of 0700 GMT, the benchmark August iron ore traded on Singapore Exchange was up by 0.24% to $96 per ton. Everbright Futures analysts said that iron ore shipments by top suppliers Australia, Brazil and South Africa have declined after a ramp-up at the end of last quarter. Galaxy Futures analysts said that the demand side would support prices. Analysts at Galaxy said that despite a small decline, hot metal production was still relatively high and steel consumption in the manufacturing sector is strong. Iron ore demand is usually gauged by the hot metal production. Iron ore futures gains were limited due to data showing that China's consumer price rose for the first five-month period in June while its producer deflation reached its highest level in nearly two years. In the face of a global trade war that is causing uncertainty and a subdued domestic demand, policymakers are under pressure to take more measures. Coking coal and coke, which are used to make steel, have both gained in the DCE. They rose by 3.81% each and by 2.43% respectively. The recent crackdown on the price war has raised expectations for supply-side reforms to be implemented in the coal industry, said a coal analyst based in Shanghai under condition of anonymity because he was not authorized to speak to media. The benchmarks for steel on the Shanghai Futures Exchange have been moving in a narrow range. Rebar, hot-rolled coil, and stainless steel were all little changed. Wire rod, however, dropped by 0.42%. $1 = 7.1790 Chinese Yuan (Reporting and editing by Harikrishnan Nair, Subhranshu Sahu and Lewis Jackson)
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Viceroy Research's short-position on Vedanta Resource's debt
Viceroy Research, a U.S. firm, has taken a short-position against Vedanta Resource, the UK-based parent company of Indian miner Vedanta. Viceroy Research claims that Vedanta is "systematically draining its Indian unit". Vedanta is planning to split up into separate listed entities. Anil Agarwal, Group Chairman of Vedanta, launched the plan to revamp the business in 2023 after an unsuccessful attempt to take Vedanta Private in 2020. Vedanta Resources announced in June 2024 it would seek to reduce its debt by $3 billion over the next three years. Viceroy Research, a short seller, said that the entire group structure was financially unsustainable and operationally compromised. It also posed a serious, underappreciated credit risk. The Vedanta group did not respond immediately to a comment request on the Viceroy Research Report. The shares of the Indian mining company fell up to 7.8% following the report. They then recovered some losses and traded at a 4.8% loss by 0723 GMT. Shares were down about 1% prior to the report. Vedanta's net debt, on an individual basis, was $4.9 billion as of March 31, 2025. This is according to the company's annual report.
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UAE: Oil markets absorb more barrels, but stocks are not rising
Suhail al Mazrouei, United Arab Emirates Energy Minister, said that oil markets were absorbing OPEC+ increases in production without building up inventories. This means they were thirsty for even more oil. OPEC+ has cut production to support the oil market for many years. It reversed its course in order to gain market share, and after U.S. president Donald Trump asked the group to pump more oil to keep gasoline prices low. OPEC+ started to reverse its 2.17 million barrels a day cut in April, with a 138,000 bpd increase. In May, June and Juli each month saw increases of 411,000 barrels per day. The group approved on Saturday a 548,000-bpd increase for August. Mazrouei stated that he is not concerned about the supply overhang, even after recent production increases. He said: "You can see, even though we've seen increases in the past few months, there hasn't been a significant buildup of inventories. This means that the market required those barrels." You cannot look at price alone and be shortsighted. "Investments can only happen if the price is right," he said. He added that even countries with large oil reserves do not invest enough. Reporting by Ahmad Ghaddar. Dmitry Zhdannikov wrote the article. Emelia Sithole Matarise, Mark Potter and Emelia Sithole Matarise edited the book.
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Saudi chemical group SABIC studies IPO of its Gas Unit
Saudi chemicals group SABIC announced on Wednesday that it is evaluating strategic options, including an IPO, for its National Industrial Gases Company. This comes amid a review of the company's business. SABIC stated in a press release that the move is in line with the company's portfolio optimization strategy and its core business focus. It added that an IPO for GAS will be aimed at improving "the group's financial position and value added to shareholders". Chemicals industry is struggling with low demand and high input cost, which has led to lower prices and squeezed profit margins. SABIC is one of the largest petrochemicals firms in the world and 70% owned by Saudi Aramco. In May, it reported a net loss for its first quarter of $323,000,000, citing an increase in operating costs as well as high feedstock prices. It also announced earlier this year that it would cut costs, find new investment options and restructure some core assets while offloading noncore businesses. The company has already sold its stakes to state-owned Saudi entities in Aluminum Bahrain (Alba), and Hadeed Steel. SABIC announced on Wednesday that the study "remains ongoing" and that each option is subject to financial, technical, regulatory, and economic assessments. According to LSEG, its shares have dropped 16.3% since the start of the year.
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QUOTES-Markets react after Trump announces 50% copper tariff
U.S. president Donald Trump announced on Tuesday that he would announce 50% tariffs on copper imports. This sent U.S. Comex Copper Futures to a record-high of more than 12%. The announcement marked the end of a long-running arbitrage that had drew metal from the global markets. Prices fell on the Shanghai Futures Exchange and London Metal Exchange. Here is the reaction of analysts and smelters from Asia. GOLDMAN SACHES HAS ANALYSTS As with previous tariffs this higher initial rate of tariff could be used to negotiate, then concessions or exemptions can follow. We expect an increase in shipments to the U.S. over the next few weeks due to the increased incentive for companies to get ahead of the tariff implementation. We maintain our Dec-25 LME Copper Price Forecast at $9,700. However, we now see a lower risk of the price rising above $10,000 in the 3Q. ANALYSTS AT CITI Our base case now is a headline Section 232 Copper Import Levy of 50%. We adjust our expectations that the COMEX/LME arb will be priced at 25-35% LME, or $2,300 - $3300/t compared to 15-20% previously. The drawdown of excess copper based in the United States could completely replace the imports of refined copper from the United States for the rest of 2025. ZHAO YONGCHENG ANALYST BENCHMARK MINERAL INTELLIGENCE The SHFE copper prices are under pressure at the moment, but will rebound once the U.S. tariffs on copper are finalized. Fundamentals remain tight in the near-term. The widening differential in price between COMEX & LME will encourage trading arbitrage, preventing the price from dropping more. Overall, the downside risk is higher in near-term." MATT HUANG ANALYST, BRANDS FINANCIAL "In the short term, the spot metal market will get a boost: Deliverable metals from South America are in high demand, driving premiums up. "Chinese holders of physical copper will still be able to rush shipments into the U.S. but the arrivals following them are likely to sit on the sidelines and let premiums slide back." Once the tariff is in place, the 'vacuum of demand' from the U.S. will diminish, and the outlook for LME/SHFE will turn negative. MARCUS GARVEY HEAD OF COMMODITIES STRATEGY MACQUARIE The loss of an arbitrageable physical price difference between CME-LME copper will result in a fall in U.S. import demand from the current 200kt/mth to something closer 30kt/mth. This should continue for several months, as excess inventories are reduced in the U.S. The CME-LME spread would not be required to incentivise marginal spot flows because of the surplus inventories in the U.S. MICHAEL WU ANALYST SHANGHAI METAL MARKET There is little time left before the deadline for shipments to the U.S., so shipments from Latin America may be the only ones that can make it." A CHINESE SMELTER MANAGER After U.S. tariffs are implemented, copper will flow into China and other countries. Prices will then return to normal fundamentals.
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Kommersant reports that 'Fortress Russia has confiscated 50 billion dollars in assets over the past three years'
The Kommersant newspaper reported that Russia confiscated assets valued at 3.9 trillion Russian roubles (or around $50 billion based on current exchange rates) over the last three years. This highlights the extent of the transformation to a "fortress Russia' economic model. Since Russia's troops entered Ukraine in February 20, 2022, foreign companies have faced the threat of state seizing their assets. However, Moscow has been increasingly focused on domestic assets, citing domestic security and strategic stability. Kommersant, a respected newspaper in Russia, stated that the size of asset seizures calculated by NSP Law Firm shows how Russia has moved from a relatively "open" economy to a fortress model. Kommersant reported that the law firm advised clients to eliminate any weak points in their business, such as second passports and economic ties to countries Russia considers "unfriendly", which is to say, all of Western Europe. Kommersant also said that owners should consider doing business with partners who are state-owned. Kommersant reported that assets worth 1.54 trillion rubles were seized in accordance with the law on strategic corporations. Another 1.07 trillion roubles was seized due to allegations of corruption, 385 billion on suspected privatisation violations, and 621,5 billion roubles for claims of poor management. In the 1990s, the fall of the Soviet Union in 1991 sparked hopes that Russia would become a free-market economy. However, widespread corruption, economic turmoil, and crime undermined the confidence in democratic capitalism. In his first eight-year tenure, President Vladimir Putin supported economic freedoms and targeted some oligarchs. He also presided over significant growth in the economy, which grew to $1.8 trillion by 2008, from $200 billion. According to the International Monetary Fund, between 2008 and 2022, the economy reached $2.3 trillion. However, Western sanctions were a major factor after Russia annexed Crimea in 2014. According to IMF data, the nominal dollar value of the Russian economy in 2024 is only $2.2 trillion.
As traders consider tariffs, the dollar is firmer and Asian stocks are mixed.
The dollar was trading at a two-and-a-half-week high against major peers on Tuesday, while copper reached a new all-time high overnight after U.S. president Donald Trump expanded his global trade conflict by threatening to impose a 50% tariff.
Trump said that levies would be imposed on pharmaceuticals and semiconductors in the near future, which weighed on Wall Street Tuesday. Futures indicate further weakness on Wednesday.
Stock markets in Asia-Pacific were mixed as investors digested Trump’s latest shifting trade salvos. Japan and South Korea, two of the largest U.S. trading partner countries in Asia-Pacific, face a deadline on August 1, to either reach a deal with Trump or face new tariffs. Trump has given mixed signals about how flexible he is regarding this date.
Trump's Monday comment that he was "firm but not 100%" confirmed the belief among some markets that deadlines were a negotiation tactic the U.S. President would eventually back away from. Trump's stance appeared to be hardened on Tuesday when he said, "No extensions will ever be granted."
Nikkei, the Japanese stock index, fell 0.2% after a small gain. Australia's index of stocks fell by 0.4% and Hong Kong's Hang Seng dropped 0.9%.
The KOSPI in South Korea rose 0.5%, while mainland Chinese blue-chips gained 0.2%.
U.S. S&P futures eased by 0.1% following a loss of 0.1% for the cash index Tuesday, which extended the 0.8% decline that began the week.
The delay of the imposition of tariffs against some of the U.S. major trading partners until August 1st has both pushed the can down the road, and reinforced the notion that higher tariff rates were a negotiation ploy," Kyle Rodda wrote in a Capital.com note.
"As a consequence, the markets are left hanging and waiting for a more powerful catalyst to drive the move."
Trump said that the trade talks with China and the European Union have been good, but he also added that he was only a few days away from sending the EU a tariff letter.
Since Trump's announcement of reciprocal tariffs on April 2, "Liberation Day", the markets have been roiled. Washington and China reached an agreement in June on a framework for tariff rates.
Metals, Currency
U.S. Copper Futures have risen by over 10%, reaching a new record high, after Trump threatened to introduce new duties on this metal, which is essential for electric vehicles, military equipment, the power grid, and many consumer products. These duties would be added to those already in place on steel, aluminum and automobile imports.
Copper futures in London, Shanghai and other markets fell on Wednesday as traders might not have enough time to ship to the United States after Trump's sudden tariff announcement.
Trump has also threatened to impose 200% tariffs for drug imports. He said that the delay could be up to a year.
The U.S. Dollar continued to gain strength on Wednesday and reached its highest level since June 20, at 147.02 Japanese Yuen.
The dollar index (which measures the currency's value against the yen, and five other major competitors) edged up at 97.573 after reaching its highest level since June 25, Tuesday, when it was 97.837.
The dollar was unchanged at $1.1720 and the euro at $1.1720. Sterling was also flat at $1.3585.
After a more than 1% decline on Tuesday, gold found a bottom at $3,301 an ounce.
The oil prices have retreated from their two-week highs of Tuesday. Brent crude futures fell 20 cents, to $69.95 per barrel. U.S. West Texas Intermediate Crude dropped 21 cents, to $68.12 per barrel.
(source: Reuters)