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Vale, a Brazilian company, plans to invest $2.6 Billion in decarbonization initiatives
A sustainability report released on Monday revealed that Brazilian miner Vale will invest up to 13 billion reais (2,56 billion dollars) in decarbonization projects to achieve its voluntary emission reduction targets and mitigate climate-related risks. The company has not specified the timeline for the investment. The investment includes up to four billion reais in decarbonizing operations. The 8 billion reais are allocated to the construction of industrial complexes focusing on low-carbon technology, including steelmaking technologies and iron ore briquettes. The firm stated that the remaining 1 billion reais would be used for research and development. Vale has invested 9 billion reais between 2020 and 2025 in initiatives to reduce carbon emissions. Vale's executive vice president for sustainability, Grazielle Parentsi, told a reporter that the company could see financial and environmental benefits from these initiatives. She said that Vale's governance structure evaluates all projects and decisions with this level of importance based on an environmental, social and governance matrix which identifies the potential risks and opportunities associated with each one. Carbon?pricing mechanisms could cost the company up to 22 billion reais, at current?value. This is expected to have a significant impact from 2030. $1 = 5.0686 Reais (Reporting and Writing by Fernando Cardoso, Editing by Aurora Ellis).
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The US Strategic Petroleum Reserve has its lowest oil stock since 1983
According to Department of 'Energy data released on Monday, crude oil stocks in the U.S. Strategic Petroleum Reserve have fallen to 340.3m barrels. This is the lowest level since 1983. It signals a?shortage of supplies at a time when?the u.s. Iran and the United States agree to a deal that will end the war in the Middle East and open up the Strait of Hormuz. The government's emergency stock fell by 8.9m barrels. This is the third-largest draw in history. The U.S. agreed to "loan" 172 million barrels to the facility in order to lower fuel prices which have risen to multi-year levels over the past few months. U.S. crude stock levels have dropped sharply over the past few weeks due to high demand for American oil in refining, and to fill supply gaps created by the Iran War. Overall,?U.S. After the beginning of the war at the end February, inventories including commercial and SPR stock have dropped by 79 million barrels to 77,6 million, the lowest level since 2023. Cushing, Oklahoma's main oil storage hub and pricing point for U.S. West Texas Intermediate Crude Futures, has seen its inventories drop to 21.6m barrels. This is near the operational lows. There are concerns about a tight supply. Stocks in the SPR fell below levels reached during the tenure of former president Joe Biden. They hit a low of 346.8 millions barrels. Republican lawmakers raised concerns at the time that the sale of the?180m barrels of oil, the largest amount ever sold from the Strategic Petroleum Reserve after Russia invaded Ukraine, was being used as a 'political instrument' and had damaged the?delicate sal caverns. The Biden administration denies these claims. The latest SPR loan requires companies to borrow oil 'to return the original volumes, plus a premium, in the form of extra oil. The Department of Energy says the system will stabilize markets without costing U.S. tax payers.
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Gold prices rise as Iran and the US agree to end war
Gold prices rose on Monday for the third consecutive session, reaching a record high of over one week after Iran and the U.S. announced that they had agreed to terms to end their conflict. This move eased expectations about higher interest rates. By 1:30 pm EDT (1730 GMT), spot gold had risen 2.6% to $4,327.82 an ounce after reaching its highest level since June 5, earlier in the day. U.S. Gold Futures closed 2.7% higher at 4,351.6. The dollar index fell by 0.2%, making metals priced in greenbacks more affordable for holders of other currencies. The dollar index fell by 0.2%, making metals in greenbacks more affordable to holders of other currencies. An official in the United States confirmed that a memorandum to end the conflict was signed by President Donald Trump of the United States, Vice President JDVance, and the Speaker of the Iranian Parliament. Both sides reported that it was expected to be signed at a Geneva ceremony on Friday. The?gold price is pricing out the conflict. The news of the peace deal brought down Treasury yields and the dollar, as well as oil. These were the main inflation and cross-asset risks, said Phillip Streible. Chief market strategist at Blue Line Futures. Since the Iran conflict, gold has been under pressure as high energy costs and inflation concerns have raised the chances of interest rate increases which tends to weigh down on the non-yielding assets. According to the CME FedWatch tool, after the framework agreement, traders reduced the odds of an U.S. interest rate hike in December from 70% to 58%, down from nearly 70% the previous week. Markets are now focusing on the Federal Reserve policy meeting of June 16-17, which will be Chair Kevin Warsh’s first as the head. Streible said that the next move in gold's price is all about Warsh and his tone. The deputy prime minister announced that Singapore will introduce a central bank gold vaulting service and an over-the counter?gold clearing system. (Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Shailesh Kuber, Jan Harvey and Joyjeet Das) (Reporting and editing by Shailesh Kumar, Jan Harvey, Joyjeet Das; Ashitha Shivaprasad from Bengaluru)
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India's silver exports fell to a three-year low after import restrictions in May
India's silver exports fell 87% from a year ago to the lowest level in over three years. This was revealed by government data on Monday, after the largest consumer of the metal in the world tightened import restrictions. India's lower imports, which meet more than 80% its silver demand by purchasing it overseas, could have a negative impact on global prices while also helping to narrow India's trade surplus and reduce pressure on the rupee. According to data compiled by Ministry of Commerce and Industry, silver imports dropped from $566.22 millions in May of last year to $75.57million. Volume-wise, imports fell?94% on an annual basis to 33 metric tonnes, the lowest level since February 2023. India restricted imports in May of'silver' in almost all forms. In the first week of this month, India tightened its rules by adding silver powder and grain to the restricted category. In an effort to reduce the pressure on foreign exchange reserves and curb imports of precious metals, the government also increased import duties for gold and silver from 6% to 15%. "There's demand, but due to restrictions it has become more difficult to import, and the local premiums are starting to increase," said a Mumbai dealer for a private bank that imports bullion. India spent $12 billion in total on silver imports during the financial year 2025/26 that ended in March. This is a record amount compared to $4.8 billion just a year ago. Silver is used for jewellery, coins, bars, and industrial applications from solar energy to electronic devices. Inflows to silver ETFs have reached a record level. India imports silver from the United Arab Emirates (UAE), Britain, and China. (Reporting and editing by Sahal Muhammad; Rajendra Jadhav)
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Gold gains over 3% after US and Iran reach a peace agreement
Gold prices rose by more than 3% on Monday. They reached a 'over a week peak, after the U.S. and Iran agreed to end their war. This eased expectations for higher interest rates. As of 10:35 am EDT (1435 GMT), spot gold was up by 3.3%, at $4.356.79 an ounce. It had earlier reached its highest level since June 5. U.S. Gold Futures rose 3.3% to $4 378.70. The index of the?U.S. The dollar index fell by 0.2% making metals in greenbacks more affordable to holders of other currencies. Although still only a framework agreement, the deal ending the war and opening the Strait of Hormuz was a major breakthrough that sent oil prices down. The official signing of the memorandum is set for Friday in Switzerland. The gold market has priced out the conflict and is now moving on. The news of the 'peace deal' brought down Treasury yields and the dollar, as well as oil. These were the major inflation and cross-asset risks, according to Phillip Streible. Chief market strategist at Blue Line Futures. Since the Iran conflict began, gold has been under pressure as rising energy prices have increased the likelihood of interest rate increases. This tends to weigh down on the non-yielding investment. CME FedWatch shows that after the framework agreement, traders reduced the odds of an increase in U.S. interest rates in December from almost 70% to?52.5%, down from nearly 70% the previous week. Markets are now looking for hints?on interest rate outlook at the Federal Reserve policy meeting on June 16-17, which will be Chair Kevin Warsh’s first as the head of the Fed. Streible said that the next move in gold's price is largely determined by Warsh and his tone. The deputy prime minister announced that Singapore will introduce a central bank gold vaulting service and an over-the counter gold clearing system. (Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Shailesh Kuber and Jan Harvey) (Reporting from Ashitha Shivaprasad, Bengaluru. Editing by Shailesh Kuber and Jan Harvey.
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Gold prices rise as US and Iran reach peace agreement
Gold prices rose for the third straight session on Monday. They reached a high of?nearly one week after Iran and United States agreed that their war would be halted. This agreement eased expectations about higher interest rates. Gold spot rose 3%, to $4,344.77 an ounce at 08:42 am EDT (1242 GMT), reaching its highest level since the 9th of June. U.S. Gold Futures? climbed 3% to 4,366.80. The U.S. Dollar Index was down by 0.2% making metals priced in greenbacks more affordable to holders of other currencies. The deal, while still in its framework stage, was the most significant breakthrough. It would reopen?Strait of Hormuz and send oil prices down. The official signing of the memorandum is set for Friday in Switzerland. The gold market has priced out the conflict. The news of the peace agreement brought down Treasury yields, oil, and the dollar, and these were the major inflation and cross-asset risks, said Phillip Streible. Chief market strategist at Blue Line Futures. Since the Iran conflict began gold has been under pressure as rising energy prices have increased the likelihood of interest rate increases, which tends to weigh down on the non-yielding assets. CME FedWatch shows that traders reduced the odds of an increase in the U.S. interest rate for December from almost 70% last week to just 54.8%. As markets seek clues about the future of interest rates, they are now looking to the Federal Reserve's policy meeting on June 16-17, which will be Chair Kevin Warsh’s first as the head. Streible added that Warsh's tone and what he will say about the interest rate path are what will move the markets. The deputy prime minister announced that Singapore would?establish a gold clearing system over the counter and?introduce gold vaulting services by central banks. (Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Shailesh Kuber) (Reporting and editing by Shailesh Kuber in Bengaluru)
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Vance hopes to release the text of an agreement to stop war in Iran by this week
?U.S. Vice President JDVance stated on Monday that he hoped the text of an agreement to halt the war in Iran and reopen the 'Strait Of Hormuz would be released this coming week. Further negotiations regarding the details of the deal were scheduled to continue. Vance said in an interview with CNBC that the United States expected the waterway to be open for a long time without tolls. He said, "Our expectation is the Strait?is?going to be opened toll-free for the long term." This is the kind of thing we will figure out during these technical negotiations. You know there are many important?details that need to be worked out. We'll sit down at the table to discuss them and find a way forward. News that the U.S., Iran and other countries had reached an agreement to end the war and reopen strait brought relief to the markets. However, the deal may depend on a ceasefire in Lebanon and postpones discussions on Tehran's nuclear programme. The deal, while still a framework for a resolution of the conflict that has claimed thousands of lives and shattered the energy markets ever since the joint U.S./Israeli'strikes against Iran in February began, was the 'biggest step forward towards resolving this conflict. Vance stated that Iran's foreign minister and House Speaker will represent Iran in Switzerland at the signing on Friday. Many details of the deal are yet to be sorted out. He did not specify who would be representing the U.S. Reporting by Susan Heavey, Katharine Jackson and Hugh Lawson; Editing by Andrew Cawthorne & Hugh Lawson
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Sweden's Vattenfall selects Rolls-Royce SMR nuclear power project
The Swedish utility 'Vattenfall' announced on Monday that it had selected Rolls-Royce SMR for the supply of a series small modular nuclear reactors. GE 'Vernova, a rival. The Swedish parliament passed legislation last year to finance the construction of a new generation reactors. This is the first time in more than 40-years that a new reactor has been built in Sweden. According to the government, this is essential for energy security as well as achieving zero net emissions by 2045. In 'August 2025, Vattenfall said that its Videberg Kraft venture intended to order five GE Vernova GE BWRX-300 reactors or three Rolls-Royce Small Modular Reactors (SMRs) to produce a total output of?close to 1,500 MW. Vattenfall CEO Anna Borg said at a press briefing that the selection of the British over the U.S. group makes Sweden part of a broader European initiative and gives the Nordic country its?first?new nuclear energy in?over forty years. Borg stated that "this project will be made into reality." Rolls-Royce said that each SMR would produce enough electricity to run a million households for over 60 years. Videberg Kraft is 80% owned by Vattenfall and the remaining 20% by a group from Sweden's biggest companies. The company plans to build a new nuclear power capacity on the site of Ringhals, the existing nuclear facility in south-west Sweden. The right-of centre government in Sweden wants to revive nuclear energy amid concerns about energy security. It has forecast that electricity demand will double by 2045 and plans to acquire a 60% majority stake in Videberg Kraft, pending approval from parliament. Private investors are deterred by the high costs and risks. The government is offering up to 440 billion crowns (47 billion dollars) in loans, 40-year guarantees, and support for the management of nuclear waste. This will help spur the construction at least 5,000MW of new nuclear power. (Reporting and editing by Terje Solsvik.)
Buy or avoid ROI-US bonds with a yield over 5%? Mike Dolan
The U.S. bond yields have crossed 5% eight times or more in the last three years, but never stayed there. The question of whether 'dragons' or 'buyers" are above this level is critical for an investor base who has become sour about?super-long term government debt.
The appetite for long-term bonds is still important, as 17% of Treasury debt maturing in the next 10 years will be held by the U.S. Treasury. This appetite is being affected by a 'cocktail' of factors, including inflation, corporate debt, dollar value and foreign ownership.
A 5% coupon per year from the U.S. Treasury is a nice source of income, especially in an uncertain economy. This is well above the average 4.2% of the last 30 years. If you don't touch your money until the end, the compound interest will more than quadruple it over the next three decades.
The real potential return on investment is another matter.
If the Federal Reserve is successful in keeping inflation at its 2% goal, a long-term 5% bond will net you a real gain of 150% in inflation adjusted terms. Even if inflation exceeds the average 2.3% rate implied by the 30-year inflation linked debt market, a 5% coupon would only double your money.
Add to that, the fact that the administration is encouraging the possibility of the dollar's near-50 percent rise in the last 15 years being substantially undone and foreign investors who hold U.S. Bonds taking a hit.
It is more important than it was before. Over the last decade, foreign investors' share in U.S. Treasury Bonds with maturities greater than 10 years has increased by more than two-fold to 14%.
The obvious alternative for everyone else over the last half-century has been clear. With dividends reinvested in the S&P500, your money would have grown 15-fold during the last three decades, and roughly the same amount over the next 30 years.
The inflation also takes a toll on that, but relative returns remain high.
The artificial intelligence boom continues, despite persistent worries about the compressed equity risk premiums with stocks at all-time highs. It continues to confuse both stock market bears and economic bears. Goldman Sachs expects to spend $7.6 trillion on AI infrastructure by 2031.
The "hyperscalers" who are leading the AI push finance their spending through long-term debt. This creates a new competition among corporate borrowers for Treasuries in the search for debt financing.
Morgan Stanley anticipates record corporate bonds this year. Tech borrowing will be a large part of it. This year, the supply of investment-grade bonds is expected to increase by more than 20% annually with maturities longer than average.
FIVE LIVE
This is just one of many headwinds that are hitting sovereign debt and in particular long-duration maturity.
First, the debt is increasing everywhere. The repeated shocks have prevented any real retrenchment. Populist political movements in Japan, Europe, and the U.S. promise ever more tax cuts or spending, but none are willing to reign in the rising deficits.
The midterm elections in the U.S. this year are likely to be a gridlock. Barclays strategists pointed out this week that "historical experience with divided government tilts financial risks towards looser outcomes."
Barclays warned that lower tariff revenues, due to legal resistance and other factors, could make the cumulative 10-year deficit in the United States $700 billion higher than the already gloomy estimates of the Congressional Budget Office. This could then lead to higher schedules for debt sales and eventually higher "term premiums" in borrowing rates.
In many cases, the demographic shifts in ageing populations that used to see pension funds accumulating ultra-long government bonds to match their liabilities are now reversed. The 'pension funds' are being drawn and the?funds have moved down in maturity.
Inflation is high and expectations of inflation are also high. This is exacerbated by the fact that oil prices have risen again this year and trade tariffs are rising. Geopolitics has been volatile and threatens supply chains and energy market for many years.
This constrains central bankers from cutting interest rates further, but also keeps the risk of the next move high. If rates don't rise soon, the risk of inflation expectations that are already high in the short term extending further into future decades is growing.
There is also the Fed. Kevin Warsh, the new Fed chairman, is expected to take office later this month. He has stated that he wants to reduce the Fed's debt and the maturity of the $6.7 trillion. As of now, 36%?of the debt held by the Fed has a maturity period of 10 years or longer.
The 5% Treasury bond yield is a welcome relief to?banks that hold bonds due to regulatory requirements or for foreign central banks who need dollar reserves.
What about as an investment? Dragons are real.
The opinions expressed are those of Mike Dolan a columnist at. This column is great! Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets seven days a weeks.
(source: Reuters)