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Mexico pays Vulcan Materials less that 1% of the arbitration claim
Mexico's government has said that it will compensate Vulcan Materials with less than 1% of the $1.7 Billion compensation sought by the U.S. quarrying firm in an international arbitration over the?closure?of their Mexican mining operations. Vulcan, through its Mexican subsidiary Calizas Industriales del Carmen launched arbitration in 2018 under North American Free Trade Agreement, after authorities closed down its limestone?extraction operation in Quintana Roo. Mexico's Economy Minister?said Monday that the arbitration tribunal rejected almost all?Vulcan?s claims. It upheld only one claim, which was related to the closure of a single site in January 2018. Sources in the government have said that the amount sought by the U.S. firm would total around $15 million. Vulcan reported on Monday that the tribunal had found Mexico to have violated NAFTA several times, but did not disclose the financial compensation. Vulcan claims that Mexico's "arbitrary" closure of its extraction operations stemmed from Mexico refusing to honor an agreement intended?to release part of its aggregate reserves? Andres Manuel Obrador was the former Mexican president who accused Vulcan of damaging the environment by removing 'limestone' below water tables for decades. Vulcan claimed that the Mexican government had illegally taken over its assets. * The land affected was declared an Environmental Protection Zone.
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Gold drops as dollar hovers around one-month high; Fed meeting in focus
The dollar remained firm, hovering?near? a month-high, and investors were waiting for the Federal Reserve's interest rate announcement this week, as well as comments from Chairman Kevin Warsh, to get a sense of policy direction. Spot gold dropped 0.7% per ounce to $4.045.29 by 11:55 am EDT (1555 GMT) while U.S. Gold Futures for August Delivery fell 0.8% to $4.045.20. The U.S. Dollar steadied on Tuesday?near an all-time high, making bullion priced in greenbacks expensive for overseas buyers. David Meger is director of metals at High Ridge Futures. He said that "elevated energy prices are a concern to Fed members as they have an inflationary outlook. The expected hawkish stance by the Fed also has pushed interest rate expectations and the U.S. Dollar higher, putting pressure on the gold price." Bullion is down about 24% from the time that the U.S. and Israel war against Iran began in late February. This has been a result of expectations that inflation due to war could cause interest rates to rise for longer. Gold is often seen as a hedge against inflation. However, when rates rise, it can have a negative impact on the metal. Investors are now awaiting the Fed's decision on interest rates and Chairman Warsh's remarks on Wednesday. Investors expect a 71% probability that policymakers will hold interest rates at their current level on Wednesday. They also anticipate a 74% likelihood of a rate increase during the central bank meeting in September. The U.S. The U.S. Commerzbank has lowered its gold price forecast for the year to end by $300 per ounce. They added that without a change in interest rate expectations a return of gold ETFs and a recovery of gold prices are unlikely. Donald Trump, the U.S. president, said that Washington and Iran were having "good discussions" on the geopolitical level. He also stated that there was a chance for a resolution. He said that if the negotiations fail, U.S. airstrikes would resume. Iran also made similar remarks about retaliation. Silver spot fell by 1.8%, to 57.36 cents per ounce. Platinum eased 0.1%, to $1.619.25. Palladium dropped 1.6%, to $1.271.05. (Reporting from Noel John, Bengaluru. Editing by Leroy Leo.)
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France prepares for fourth major heatwave, as crews battle Bordeaux fire
The fourth heatwave in France this year is expected to hit on Tuesday. High temperatures and dry conditions in the southwest of France will put pressure on firefighters battling the massive wildfires that are raging across the Bordeaux region. According to Climate Monitor, temperatures in Bordeaux will reach 33 degrees Celsius during the day. This is 7 degrees higher than the average between 1961 and 1990. "The situation that we are facing today is the worst we've ever seen, the most difficult since the Second World War," said President Emmanuel Macron on Monday night, after flying to the region. Nathalie Deattre, senator for Gironde (which includes the city of Bordeaux), said that fire crews contained the flames overnight but that the situation was still difficult. She told BFM Television on Tuesday that "everything depends on how well the firefighters perform on the ground." France is experiencing a wildfire season unlike any other. The fires have already surpassed 2022's previous record year. The Landes region, southwest of Bordeaux is covered with pine forests that are highly flammable if they become dry. So far, the fire has destroyed 42,000 hectares. About 220,000 people have been evacuated, including tourists and local residents. The situation in Biscarrosse has improved. About 15,000 people who were evacuated last week are now allowed to return home. "However, the (positive) development does NOT mean that the risk has been eliminated. Flare-ups are still possible, especially due to weather conditions. ")," the report said. Meteo France, the weather service, said that temperatures would increase from the afternoon onwards and reach a maximum of 37 degrees Celsius by Wednesday. In a recent post on X, the social media platform, Interior Minister Laurent Nunez revealed that French authorities had jailed a man in connection with the wildfires still burning in the Var region. Nunez stated that 184 individuals have been arrested since the start of the wildfires season. (Reporting by Yves Herman; Additional reporting by Charlotte van Campenhout, Editing by Andrew Heavens; Reporting by Manuel Ausloos; Inti Landauro; Sarah Meysonnier)
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The chip market is on a downward spiral as world stocks fall to a one-month low
The world stock market fell to its lowest level in a month on Tuesday as investors dumped chips across the globe on fears of Chinese competition and funding for the AI boom. A possible U.S. interest rate hike this week also dampened the mood. The Nasdaq Composite, which is a tech-heavy stock, fell 1.37% Tuesday, and chipmakers were also impacted. Micron MU.O dropped 11.7%, Nvidia NVDA.O dropped 1.7%, and Intel INTC.O lost 8.5%. Asian chipmakers were the main culprits of the sell-off on Tuesday. South Korea's KOSPI plunged more than 10%, reaching a three month low. It triggered a circuit breaker on its way down, and is now on track to record the largest monthly drop in history, surpassing the declines experienced during the Asian Financial Crisis in 1997. The index had more than tripled its value in the 12 months leading up to June. However, it has lost more than one-third of that value since then. Shares of memory chipmakers SK Hynix, and Samsung Electronics have fallen more than 12% in a market dominated by leverage. Their stratospheric rise has slowed down. The MSCI All-Country?World Price Index fell by 0.76%, to its lowest level since June 26. Investors have been concerned about circular funding and stretched valuations in the AI sector after a strong rally in this year. After a report stating that China was manufacturing its own immersion deep ultraviolet lithography machines (DUV), the latest sell-off followed. Meanwhile, Chinese chipmaker CXMT made a strong debut on Monday. This fueled concerns over increased competition in memory chip industry. You've seen companies pay for AI and hyperscalers not participate because they are worried about the cost or the level of leverage required. We're now seeing concerns about the profitability of semiconductors, especially in Asia," Dorian Carrell said, Schroders' head of multi-asset investment income. The AI story is still evolving, but this kind of growth rate (profits) is rarely sustained. We believe that the market is healthy in questioning these issues. Even though some positive earnings reports were released by companies such as Unilever and Mercedes-Benz helped European stocks to outperform, they still did not help the stock market. The earnings this week of "Magnificent 7" members Microsoft.com, Amazon.com Meta, and Apple, which are also companies that spend the most on AI will be seen by many as a test for the market rally. This is especially true after Alphabet, Tesla, and other tech giants spooked the investors with their negative cash flow reports last week. US RATE INCREASE, OIL SLIPS, EYED Brent crude?futures extended Monday's nearly 9 %?fall, falling 1.87% at $86.71 per barrel as a lull between hostilities and the U.S. followed Washington's sudden suspension of air attacks on Saturday. Donald Trump stated on Monday that the United States is having "good discussions" with Iran, and there's a good chance for a deal. The yield on the benchmark U.S. 10 year notes dropped 2.87 basis points from 4.641% on Monday. The markets have estimated that there is a 32% probability of a Federal Reserve rate hike by 25 basis points this Wednesday. Oscar Munoz is the head of U.S. Economics at TD Securities. He wrote in a recent note that "Higher oil costs due to Middle East tensions increased inflation risk and strengthened the case for a rate increase. However, we believe more evidence is needed to gain majority support." The euro gained 0.05% against the dollar to $1.1373. The Japanese yen fell 0.05%, to 163.83 dollars, barely above its four-decade-low. Markets are on edge, fearing that Japan will intervene in the currency pair, especially if it holds rates this week, and triggers another yen decline.
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Sources say that OPEC+ is likely to halt oil production increases after September.
On August 2, seven members of OPEC+ will meet. Sources say that the group will increase its output quotas for September by 188,000 bpd. Source: OPEC+ requires the result of the oil capacity review to decide on 2027 quotas By Alex Lawler and Ahmad Ghaddar LONDON, 28 July - OPEC+ will likely pause its 'gradual oil production hikes' after September, for?the rest of the year, according to four sources, because it needs to hold additional discussions before deciding on its output quotas in 2027. The pause will mark the end of several month of production hikes that were mostly on paper because the Iran War forced Middle East countries to reduce exports. Some members of the alliance are pushing for higher targets, while others like the International Energy Agency predict that supply could exceed demand. GROUP'S PRINCIPALS MEMBERS MEET?ON AUGUUST 2 Sources from OPEC+ told us last week that the core members of the group -- Saudi Arabian, Russia, Iraqi, Kuwait, Algerian, Kazakhstan, and Oman -- are likely to increase their output target for September by 188,000 barrels a day at a meeting on August 2, which is similar to what they did in June, July, and August. The September increase 'would complete a phasing back of a 1,65 million bpd cut in supply originally agreed upon in 2023 when OPEC still included United Arab emirates. One of the sources stated that there would be no further changes until the end of the year. The current production levels will remain unchanged until January 2027, when the new quotas are implemented. Sources spoke anonymously and stated that no final decision has been made. Neither OPEC nor Russian authorities responded immediately to requests for comments. INTERNATIONAL AND EXTERNAL FIELDS AT PLAY OPEC+’s?output strategy for 2027 is likely to be influenced both by external and internal factors. The group still has a layer of cuts to be implemented until the end?2026. This is a 2 million bpd cut that dates back to 2022 and applies for most members. OPEC+ is also completing a'review' of member oil production capacities to be used as a baseline for 2027, from which quotas will be set. The group must wait until the results of this review are released before deciding on the next steps. Iraq and other members of the group are also pushing for increased individual quotas in order to reflect their higher production capacity. The IEA's outlook for the oil market in 2027 is also important. It expects a surplus, depending on whether or not the Strait of?Hormuz will be reopened. OPEC+ is a group of 21 countries that includes the Organization of Petroleum Exporting Countries plus Russia and allies. Only seven countries have participated in the monthly management of production. The UAE was excluded until it left. Reporting by Alex Lawler and Ahmad Ghaddar; editing by Kirby Donovan and Jan Harvey
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Trump's crackdown on diversity reverberates in US boardrooms
The number of appointments of women and minorities of all races to S&P500 boards has dropped to its lowest level in over a decade. This threatens to undo years of progress in boardroom diversity. This shift can be seen in the new research by recruitment firms who study leadership diversity, and in interviews with over a dozen boardroom interviewers, investors and HR analysts. This comes after a series Trump administration initiatives targeting DEI, or diversity equity and inclusion. Major investors in 'corporate America who once pushed companies to diversify boards have now retreated. RECORD DIVERSITY MASKS SHIFT IN NEW APPOINTMENTS Spencer Stuart, a global executive search firm, released new data on Tuesday that shows the diversity of board appointments has been steadily declining since its peak at 72% between 2021 and 2022. According to leadership advisory firm, of the 364 independent directors appointed to S&P500 boards in the year ending April 30, 40% were females or minorities. This is the lowest number since 2014 when 39% were diverse. Spencer Stuart reports that diverse directors currently hold 49.3% seats on S&P 500 boardrooms, a slight decrease from the 49.6% record set in 2024-2025. The recent increases in diversity are a result of years of appointments made following the #MeToo, and Black Lives Matter movements. While board diversity is at a record high, new directorships are becoming less diverse. This suggests that these gains could be difficult to maintain if the current hiring practices continue and more new board seats go to white men. George Anderson, coleader of Spencer Stuart’s North American Board Advisory 'Practice,' said that boards are responding in response to the changing legal, governmental and political pressures. He explained that the trend of hiring current and former CEOs as directors is one of the reasons for the decline of diversity. This year, 37% of all new directors were ex-CEOs. It was the highest number in 15 years. He said that companies see these executives as being well-suited to handle complexity. However, the CEO talent pool was less diverse. This shift in boardroom appointments is accompanied by a dramatic decline in companies publicly citing the importance of diversity in board recruitment. According to PeopleReturn's data, which was provided by a firm that provides human resources analytics, only 12% of S&P500 companies disclose they use some form of diversity criteria when making board decisions. This is down from 23% of S&P500 companies in 2025 (when President Donald Trump started his second term) and 48% of S&P500 in 2024, under President Joe Biden. PeopleReturn reports that board diversity reached a peak of nearly 50% in this year. While supporters say that the initiatives expand opportunities for historically underprivileged groups and improve governance, Trump and others criticize them as discriminatory against white men and women and a threat to merit-based advancement. Kristin Hull is the chief investment officer at Nia Impact Capital. The company, which frequently lobbys tech companies for social causes, says that the decline in corporate appointments reflects an increase of male leadership. She said, "We made such progress." "Bro culture is now alive and kicking." Robby Starbuck is a conservative activist who, in a series of high-profile campaigns on social media, urged companies such as Tractor Supply and John Deere to rollback DEI. He said, "They focused on the wrong things and it showed in their earnings." Both companies did not respond to requests for comments. Allison Schuster, White House spokesperson, responded that Trump was "resoundingly elected" with a mandate for ending divisive and racist policies, and restoring merit and efficiency. "OUR COUNTRY WON'T BE WOKE ANY LONGER" The Equal Employment Opportunity Commission (EEOC), created under the Civil Rights Act of 1965, was tasked by the Trump administration with eradicating what it calls illegal DEI policies that, according to the administration, gave women and minorities preferential treatment in hiring and promotion. After the Supreme Court ruled that race should not be considered in college admissions in 2023, many companies canceled or reevaluated their diversity initiatives. The decision did not cover corporate practices but it triggered a legal threat against companies for a variety of diversity initiatives. Last year, Trump issued executive orders that restricted certain DEI programs within federal contractors as well as the federal government. He then declared: "Our country will no longer be woke." Trump's administration threatens hefty fines against companies who do not comply. IBM agreed in April to pay $17million to settle allegations that it discriminated against certain employees and failed comply with Trump's order calling DEI initiatives illegal to federal contractors. The U.S. Justice Department claimed IBM gave priority to diverse candidates when hiring and tied bonuses to meeting certain demographic targets. IBM, the first U.S. firm to be targeted under Trump's anti DEI directive for its employment practices, has not responded to requests for comment. The settlement agreement denied that there was any wrongdoing. However, shareholders have not shown much interest in proposals that would weaken DEI. Conservative shareholder proposals aimed at corporate DEI efforts received only 1.5% average support in recent annual meetings. This is a typical level. Board Recruitment Shifts Away from Diversity Interviews with over a dozen recruiters and investors, as well as employees, revealed that companies place less importance on diversity when it comes to board recruitment. This shift can be seen at companies such as Johnson & Johnson and Goldman Sachs, which championed diversity after the #MeToo and 2020 protests against the police killing George Floyd. Goldman dropped its requirement in early 2017 that companies going public had at least two board members who were diverse. It cited "legal developments", weeks after Trump's?first executive orders targeting diversity initiatives. Goldman's spokesperson stated that the firm believes diversity is important to its success and enhances performance. Amex and J&J did not respond to requests for comments. The INVESTOR RETREAT eases pressure on board diversity PeopleReturn CEO, Josh Ramer, said that top asset managers like BlackRock Vanguard State Street had withdrawn from DEI. This has eased the pressure on companies to increase board diversity. "All of the large investors who were pushing this issue have stopped talking about it. He said that large-cap executives are under less pressure to talk about it. Previously, fund managers had to ensure that there was a certain amount of diversity in the company boards they owned stock. BlackRock, as an example, called for 30% diversity on company boards in late 2021, while Vanguard in?2022 called for diversity in gender, race, and ethnicity at a minimum. Last year, both companies removed this language. State Street lowered its expectation that by 2025, women would make up at least 30% on major company boards. Three asset managers declined comment on this article. In the C suite, recruiters report that diversity is now less important in executive searches. Spencer Stuart reports that women and minorities accounted for 22% of the S&P 500 CEOs in 2013. This is down from 23% a year earlier. Spencer Stuart and PeopleReturn tracked the race, ethnicity, and gender of board members using self-identified data, which was supplemented with information from outside sources. Today, we hear more about "the best person." Jeff Christian, CEO at executive headhunting company Christian & Timbers, said that being a person or color is less valuable than it used to be.
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Gold drops as dollar hovers around one-month high; Fed meeting in focus
Gold prices fell on Tuesday, as a result of a strong?dollar? that hovered around a month-high. Investors were waiting for the Federal Reserve's interest rate announcement this week and Kevin Warsh's comments to get a sense of policy direction. Spot gold dropped 1.1% per ounce to $4.032.42 by 9:27 am EDT (1327 GMT), and U.S. Gold Futures for August Delivery fell 1.1%, to $4.032.40. The dollar remained near a one-month high on Tuesday, making greenback-priced bullion expensive for buyers overseas. The dollar remained near its one-month-high on Tuesday, making bullion priced in greenbacks expensive for overseas buyers. David Meger is director of metals trading at High Ridge Futures. He said that "Elevated energy prices are an inflationary concern to Fed members. The expected hawkish stance by the Fed has forced expectations for interest rate hikes and the U.S. Dollar higher, adding pressure on the gold price." Bullion is down about 24% from the time that the U.S. and Israeli?war against Iran began late in February. This has been a result of expectations that inflation due to war could cause interest rates to rise for longer. Gold is often seen as a hedge against inflation. However, when rates rise, it can have a negative impact on the metal. Investors are now awaiting the Fed's decision on interest rates and Chairman Warsh's remarks on Wednesday. The traders expect the policymakers to hold interest rates at their current level on Wednesday, with 77% expecting a rate increase during the central bank meeting in September. The U.S. The U.S. Commerzbank has lowered its gold price forecast for the year to $4,500 an ounce. They added that without a change in interest rates expectations, it is unlikely that gold ETF investors will return and gold prices will recover. Donald Trump, the U.S. president, said that Washington and Iran were having "good discussions" on the geopolitical side. He also stated that there was a chance for a resolution. He said that if the negotiations fail, U.S. airstrikes would resume. Iran also made similar remarks about retaliation. (Reporting by Noel John in Bengaluru; Editing by Leroy Leo) (Reporting from Noel John, Bengaluru. Editing by Leroy Leo.)
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US supports Madagascar rare earths project to loosen China’s supply chain grip
The?U.S. The?U.S. State Department said that Washington is supporting the Ampasindava?rare earths 'project in Madagascar in order to?loosen the dominance of competitors in critical minerals supply chain, as part of its?strategies?to loosen rivals' dominance, and this underscores Washington’s push for alternative sources of minerals, which are now largely controlled primarily by China. The project reveals a shift in the African critical minerals sector where Chinese companies had long been dominant in investment in copper cobalt lithium. The U.S., and other Western countries are supporting some of Africa's most important rare earth projects. Harena Rare Earths of London, the owner and developer behind the $150 million Ampasindava Project, announced last week that the U.S. International Development Finance Corporation had committed up to $4.48million for the pilot plant, laboratory testing, and environmental programmes. This paved the way for future funding. State Department spokesperson stated that Washington's crucial minerals strategy in Africa aims to increase U.S. investments in mining sectors which have long been dominated by "opaque and predatory investments" from our enemies. In an email response, the spokesperson stated that "Madagascar is part of this strategy and we see many opportunities to increase U.S. investment and U.S. aligned investment in the critical minerals sector" throughout the country. China is the world's largest rare earth miner and processor. It has implemented export controls to demonstrate its control over critical supply chains for electric vehicles and wind turbines. US AND EUROPE PROCESSING OPTIONS Harena claims that the Ampasindava deposit of ionic sand is rich in neodymium as well as praseodymium. These elements are vital for manufacturing permanent magnets, which are used to manufacture fighter jets, precision-guided rocket systems and other defence applications. The company stated that the project will produce approximately 4,000 metric tonnes of rare earth oxides per year, including 1,700 tons high-value magnet rare Earths NdPr, DyTb and DyTb. Andrew Murphy, Harena's Executive Chair, told? Harena Executive?Chair Andrew Murphy told? The mines ministry of Madagascar did not immediately respond to requests for comment. Harena plans to start production in Ampasindava around mid-2028 and is currently evaluating refining options both in the U.S. and Europe. Murphy named MP Materials, USA Rare Earths and Solvay as potential partners. Murphy stated that while the DFC's commitment is modest, it may?open up the door for larger U.S. funding as the roughly $150 million project progresses towards construction. DFC officials said that they could provide additional funding for the project if it meets certain criteria, such as due diligence and approvals. However, they declined to discuss possible financing.
Stocks slide, yields up on 'greater for longer' rates see
International stocks dipped on Tuesday, while bond yields and the dollar traded near multimonth highs as financiers reined in expectations for more big U.S. rate of interest cuts ahead of the U.S. election.
Bucking the pattern in the equities market was the European heavyweight software application company SAP, which rose to an all-time high after raising its full-year targets.
The MSCI All-World index ticked 0.2% lower, while U.S. futures indicated another weaker start open after Monday's drop in the benchmark indices.
We're getting really near to the U.S. election and the information in the U.S. has actually been strong. So there is a question about how much the Fed can do, said Peter Schaffrik, global macro strategist at RBC Capital Markets.
The opportunities of the U.S. Federal Reserve delivering a. quarter-point rate cut at its Nov. 7 conference have actually declined to 87%. from near certainty a week earlier, according to CME's FedWatch. tool.
A host of information signalling U.S. financial strength have tossed. cold water on bets over another outsized cut, following the. Fed's decision to cut rates by half a point in September.
Adding to the unpredictability was the looming U.S. election,. where previous Republican president Donald Trump and Democrat Vice. President Kamala Harris are caught in a tight fight to win over. some of the more competitive states ahead of the Nov. 5 voting. day.
Trump's lead in online wagering surveys has helped the dollar's. current increase to a 2-1/2 month high as his proposed tariff and tax. policies might suggest stronger inflation and keep U.S. interest. rates greater for longer.
The dollar index was just below that peak at 103.89.
As neither party holds a clear benefit in any of the secret. swing states that could decide the result, the race stays too. close for pollsters to call, and we anticipate volatility to pick up. in the coming weeks in the middle of elevated unpredictability, said Mark. Haefele, primary investment officer, UBS Global Wealth Management.
Political and geopolitical uncertainty kept safe-haven gold. pinned near record levels, up 0.6% at $2,735 an ounce.
Standard 10-year Treasury yields rose 2 basis. indicate 4.21%, extending a sharp relocation higher and striking their. highest given that late July.
ASIA TRADE
Financiers likewise took some cash off the table in Japan, which. holds an election on Sunday. Stocks, bonds and the yen have all. fallen in tandem as surveys have shown the possibility of the. ruling coalition losing its bulk.
Japan's Nikkei ended down 1.3% to touch its least expensive. given that early October, while the yen hit 151 per dollar. for the first time given that July.
It's a little capital flight out of Japan, stated Naka. Matsuzawa, Japan macro strategist at Nomura. More broadly, he. said, markets were starting to hypothesize on a red sweep,. providing Republicans the White Home and Congress in November.
Besides the yen, foreign exchange markets steadied after a. session of selling nearly whatever versus the dollar. The. Australian and New Zealand dollars were each up about 0.4% on. the U.S. dollar while the euro and sterling increased 0.1%.
The move pushed sterling simply listed below $1.30, however. traders beware as Bank of England Guv Andrew Bailey is. due to speak at 1325 GMT and has recently suggested the main. bank can move more aggressively to cut interest rates.
China's markets were pinned well listed below current highs, while. traders await more details and especially more federal government. seriousness and costs to support the ailing economy.
Oil rates likewise steadied and Brent unrefined futures. traded at $74 a barrel, down 0.3% on the day. China's. oil-demand development is expected to remain weak in 2025, the head. of the International Energy Company stated on Monday.
A reasonably bare data calendar puts additional focus on U.S. revenues for insight into the economy and markets' mood.
General Motors, Texas Instruments Verizon. , Lockheed Martin and 3M are amongst those. reporting on Tuesday.
(source: Reuters)