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US-China Trade Talks to Resume for a Second Day
Tuesday in London, top U.S. officials and Chinese officials are expected to resume their trade negotiations for a second time. They hope to achieve a breakthrough on export controls of goods like rare earths which have caused a global supply-chain shock and slowed economic growth. Investors hope that the two superpowers will improve their ties. The relief brought by the preliminary trade agreement reached in Geneva last week has given way to new doubts. Washington accuses Beijing of blocking critical exports to industries such as autos, semiconductors, and defence. The talks take place at a critical time for both economies. Customs data shows that China's exports into the U.S. dropped by 34.5% in may, the biggest drop since February 2020 when the COVID-19 virus pandemic disrupted global trade. The dollar is still under pressure by U.S. policies, even though the impact has been minimal on U.S. jobs and inflation. Both sides will be expected to provide updates on both Tuesday and Wednesday. On Monday, the two sides met in the elegant Lancaster House of the British capital to discuss their disagreements regarding the Geneva agreement. The U.S. delegation is led by U.S. Treasury Sec. Scott Bessent and Commerce Sec. Howard Lutnick, while Vice Premier He Lifeng leads the Chinese delegation. Lutnick's inclusion, whose agency is responsible for export controls in the U.S.A., shows how important rare earths are. China has a near monopoly on rare-earth magnets. These are crucial components in electric vehicle motors. Lutnick didn't attend the Geneva negotiations where the countries reached a 90-day agreement to reduce some of the triple-digit trade tariffs that they had imposed on each other. Trump's often erratic tariff policy has caused global market turmoil, caused congestion and confusion at major ports and cost companies billions in lost sales. The second round of talks between the two parties comes four days after Trump spoke with Xi by phone. It was their first direct contact since Trump's inauguration on January 20, 2017. After the call, Trump reported that Xi agreed to resume shipments of rare earths minerals to the U.S. and reported China had granted temporary export licences to rare-earth supplier of the three largest U.S. automobile manufacturers. The tensions over export controls remain high, as factories across the globe worry that they will not have enough materials to continue operating. (Reporting and editing by Alistair Bell; Kate Holton)
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Oil prices rise as US-China trade talks are awaited
The oil prices rose on Tuesday, as traders awaited the outcome of U.S. China talks which could ease trade tensions and increase fuel demand. Brent crude futures rose 12 cents a barrel to $67.16 at 0041 GMT. U.S. West Texas Intermediate Crude was trading at $65.42, up 13 cents after reaching its highest level since April 4, earlier in the session. Brent oil prices rose to $67.19 on Monday, their highest level since April 28. This was boosted by the prospect of a U.S. China trade agreement. The U.S. and China trade talks will continue in London for a second consecutive day as officials try to reduce tensions which have risen from tariffs on rare earths to global supply chain disruptions. Donald Trump, the U.S. president, said that the talks in London were "going well" and he had received only positive reports from his team. The U.S.-China trade agreement could boost the global economy and increase demand for commodities, including oil. Iran has said that it will soon present a counter proposal for a nuclear agreement to the U.S. as a response to an offer from the U.S. that Tehran finds "unacceptable", whereas Trump stated that both sides remain at odds on whether Iran would be permitted to enrich uranium in its soil. Iran is the third largest producer of oil among the members of the Organization of Petroleum Exporting Countries. Any easing of U.S. sanction on Iran will allow it to export even more oil and this would have a negative impact on the global crude price. A survey also found that OPEC's oil production rose in May. However, the rise was not as large as expected, since Iraq pumped less than the target amount to make up for the earlier overproduction, and Saudi Arabia, the United Arab Emirates and Kuwait increased their output by a smaller amount. OPEC+ - which includes OPEC and its allies, such as Russia - is accelerating the plan to undo its latest layer of production cuts. Daniel Hynes is a senior commodity strategist with ANZ. He said that the prospect of further increases in OPEC's supply still hangs over the market. "A permanent switch to a market-driven strategy (in OPEC), would push the oil markets into a large surplus in H2 of 2025, and almost certainly lead to lower prices for oil." (Reporting by Anjana Anil in Bengaluru; Editing by Himani Sarkar)
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Sizewell C Nuclear Project: Britain invests 14.2 billion pounds
The government announced on Tuesday that it will spend 19.25 billion pounds (14.2 billion pounds) to build Sizewell C in southeast England as part of a wider review of spending which will determine its priorities for the next four-year period. Britain wants to build new nuclear power plants to replace the aging fleet in order to boost energy security, as well as reach its climate goals. Sizewell C is expected to produce enough electricity for around 6,000,000 homes once it's built. Ed Miliband, Britain's Energy Minister, said that new nuclear is needed to bring about a golden age for clean energy. This will protect the family finances, give us back control over our energy and help combat the climate crisis. The press release did not specify whether or not the funding included the 6.4 billion pound pledged for the project, nor when the final investment decision was expected. The report did not give any figures on the total expected cost of the project, nor a time frame for its completion. The plant would be the second nuclear power station built in Britain since more than 20 years, following French state-owned EDF’s Hinkley Point C, which has been delayed and overspent. It is now expected to begin operations in 2029 at a cost estimated between 31 and 35 billion pounds, based on 2015 prices. Sizewell C, originally an EDF project, is now owned by the British Government with EDF as a minority shareholder. EDF financial results from February showed that the UK government held 83.8% of the shares and EDF had 16.2%. EDF's share is expected to decline following Tuesday's announcement. The announcement made on Tuesday did not mention other parties. The developer of the project told us in December that there were five investors who participated in a bid process. ($1 = 0.7378 pound) (Reporting by Susanna Twidale, editing by David Evans).
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Stocks rise, dollar falls as US-China talks are in the spotlight
The dollar fell on Monday as the United States and China began talks in London to settle a trade conflict between their two largest economies. The dispute has gone beyond titt-for-tat trade tariffs and now includes restrictions on rare earths. This could cripple global supply chains, slowing growth. U.S. president Donald Trump said that his administration is doing well, and he's getting good feedback as U.S. officials are holding the talks with China. The market considers dialogues with Beijing to be progress, regardless of whether they produce tangible results. "The market will take the administration at its word until it is proven otherwise," said Jake Dollarhide of Longbow Asset Management, Tulsa. The Dow ended flat, as Morgan Stanley downgraded McDonald's to "equal weight" and Travelers. The Dow Jones Industrial Average rose 0.09 points to 42,761.76, while the S&P 500 gained 5.52 points or 0.09% to 6,005.88. Finally, the Nasdaq Composite climbed 61.28 or 0.31% to 19,591.24. The S&P 600 index rose 0.9%, indicating that small-cap stocks have outperformed. MSCI's global stock index gained 1.94 points or 0.22% to 893.90, and is on course for its second consecutive session of gains. In five of the six recent sessions, it has increased. In Europe, STOXX 600 closed down by 0.07%, ending a winning streak of four sessions, its longest consecutive run in three weeks. The U.S. Dollar fell against most major currencies as caution in anticipation of trade talks offset optimism about a better than expected U.S. Employment Report on Friday. In a post on social media, Trump stated that U.S. Treasury Sec. Scott Bessent and Commerce Sec. Howard Lutnick, as well as Trade Rep Jamieson Greer, would be representing Washington at the London talks. The Chinese Foreign Ministry said that Vice Premier He Lifeng attended the first China-U.S. Economic and Trade Consultative Mechanism meeting in Britain. U.S. data on the economy showed that wholesale inventories in April increased due to stockpiling prescription medications in anticipation of tariffs by the Trump administration. Investors will also be awaiting U.S. data on inflation that could affect expectations about the timing of rate cuts from the Federal Reserve. Morgan Stanley analysts said that they expect May to be the beginning of a series of core inflation readings which will become increasingly stronger. The impact from tariffs is expected to peak in the third quarter, and then begin fading in the fourth. According to LSEG, the market is not expecting a Fed cut before September's meeting. It currently prices in a 62% probability of a reduction of at least 25 base points. Fed officials are in an "invisible period" ahead of the policy decision on June 18. The dollar index (which measures the greenback in relation to a basket of currencies) fell 0.14%, while the euro rose 0.25%, reaching $1.1423. Treasury yields on longer-term U.S. Treasury notes were lower to start the week. This reversed after the Friday jobs report drove yields higher. The yield on the benchmark U.S. 10 year notes fell 2.8 basis points, to 4.482%. Investors will be watching the auctions for U.S. bonds and notes of 3, 10 and 30 year maturities this week to see if there is any investor demand. U.S. crude oil settled up 1.1% at $65.29 per barrel while Brent settled at $70.04 per barrel up 0.86% for the day. This was due to hopes that a trade agreement could boost the global economy along with a weaker dollar.
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Dollar falls, stocks rise as US-China talks focus
The dollar fell on Monday as the United States and China began talks in London to settle a trade conflict between their two largest economies. The trade dispute has gone beyond tit for tat tariffs and now includes restrictions on rare earths. This could cripple supply chains, slowing global growth. Peter Cardillo is the chief market economist of Spartan Capital Securities. All three major Wall Street indexes rose, with the Dow erasing previous declines due to weakness in Travelers, McDonald's and Morgan Stanley, which downgraded the latter's rating from "equal weight" to "equal". The Dow Jones Industrial Average rose by 99.41 points or 0.23% to 42,862.26, while the S&P 500 gained 18.48 points or 0.31% to 6,018.84, and the Nasdaq Composite climbed 88.71 or 0.46% to 19,618.93. The MSCI index of global stocks rose 3.37 points (0.38%) to 895.33, and is on course for its second consecutive session of gains. In five of the six recent sessions, it has increased. In Europe, STOXX 600 closed down by 0.07%, ending a winning streak of four sessions, its longest consecutive run in three weeks. The U.S. Dollar fell against most major currencies as caution in anticipation of trade talks offset optimism about a better than expected U.S. Employment Report on Friday. In a post on social media, President Donald Trump announced that U.S. Treasury Sec. Scott Bessent will be joined by Commerce Sec. Howard Lutnick, and Trade Rep Jamieson Greer to represent Washington at the discussions with China. China's Foreign Ministry announced Vice Premier He Lifeng would be in Britain to attend the first meeting of China-U.S. Economic and Trade Consultative Mechanism. The U.S. economy data revealed that wholesale inventories in April increased amid stockpiling prescription medications in anticipation of tariffs by the Trump administration. Investors will also be watching Wednesday's U.S. Inflation data, which may change expectations about the timing of rate cuts from the Federal Reserve. Morgan Stanley analysts said that they expect May to be the beginning of a series of core inflation readings which will become increasingly stronger. The impact from tariffs is expected to peak in the third quarter, and then begin to decline in the fourth. According to LSEG, the market currently prices in a 59% probability of a central bank cut of at least 25% basis points during its September meeting. The Fed is in a "blackout" period before the policy decision on June 18. The dollar index (which measures the greenback in relation to a basket of currency) fell 0.14%, while the euro rose 0.24%, reaching $1.1421. Treasury yields on longer-term U.S. Treasury notes were lower to start the week. This reversed after the Friday jobs report drove yields higher. The yield on the benchmark U.S. 10 year notes fell 3.4 basis points, to 4.476%. U.S. crude oil rose by 0.51%, to $64.92 per barrel. Brent was up to $66.74 a barrel on the day. This is on hopes that a trade agreement could boost the global economy outlook.
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IAEA chief warns Israel against striking nuclear facilities
According to an interview that was broadcast on Monday, the chief of the International Atomic Energy Agency Rafael Grossi stated that Iranians warned him about a possible Israeli strike on Iran's nuclear facilities. This could lead Iran to become more determined to develop a nuclear weapon. Grossi stated in the interview published on the Jerusalem Post's website and broadcast on i24 TV on Sunday that a strike could have a compounding effect. It would solidify Iran's resolve - I say this plainly - either to pursue obtaining atomic weapons or to withdraw from the Treaty on the Non-Proliferation of Nuclear Weapons. The Jerusalem Post reported that Grossi doubted Israel's ability to strike Iran's nuclear sites. Grossi, speaking to the Jerusalem Post, said that Iran's nuclear program is "wide and deep". To disrupt them, it would take overwhelming and destructive force. Tehran and Washington recently held nuclear talks, mediated by Oman. Esmaeil baghaei, spokesperson for the Iranian Foreign Ministry, said that Iran will present a counter-proposal to the United States through Oman in response to an offer from Washington which Tehran finds "unacceptable". Last week, U.S. president Donald Trump claimed he warned Israeli Prime Minister Benjamin Netanyahu against taking actions that might disrupt nuclear negotiations with Iran. Trump told reporters at the Oval Office: "I told him that this was not appropriate to do now, because we are very close to finding a solution." "That could all change at any time." Trump and Netanyahu will likely speak on the phone Monday.
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South African students combat eco-anxiety with the help of water tests
South Africa has high levels of pollution in its water Citizen water-testing spreads across country Environmental anxiety can be addressed by citizen science By Kim Harrisberg They are part a growing group of citizen scientists who collect water samples throughout the country in order to monitor pollution, and brainstorm on what can be done. Zeenat RAMDHARIE, 19, is a student of environmental science, geography, and development studies at Independent Institute of Education (IIE MSA), a private institution where the testing initiative has been launched. She said, "When more people join together to find these (environmental issues), things can be achieved." As she stood on the bank of the Wilgespruit River, a tributary of a transboundary, shared river by South Africa Botswana, and Mozambique. IIE MSA launched its Water Quality Monitoring Initiative (late May) to provide students in South Africa with the necessary tools and training to monitor freshwater ecosystems. IIE researchers say South Africa's rivers and waterways are threatened by pollution from mining, agriculture, industries, and poor wastewater management. All of these things harm biodiversity. According to the United Nations, about one-third (33%) of rivers in Africa and Latin America, as well as Asia, are severely polluted, which threatens human health, food safety, and ecosystems. According to the U.S. Environmental Protection Agency, climate change affects water through flooding, droughts, and increasing temperatures that heat up water bodies and encourage harmful algae growth. Students can win cash prizes by participating in the IIE MSA Water-Monitoring Initiative, which runs for three months. The initiative encourages students to collect and analyze data to determine how to maintain or improve water quality. Vanessa Stippel is a lecturer at IIE MSA in environmental science. She said, "We're interested in how citizen-science can lead to advocacy or action." She said that when people feel invested in the project, they will be more inclined to want to share their knowledge with others. FIGHTING ECO ANGST According to a policy paper by Earthwatch Europe, low-cost monitoring tools are able to help citizen scientists collect information, especially when government monitoring is absent. Kyle Kumst is a student at IIE MSA studying environmental science, geography and development studies. He said that the water testing allows him to "connect with nature once again". Stippel is aware of how citizen science helps combat climate anxiety and apathy in her students. "Climate Change is such a huge concept that you feel powerless." "We don't even know where to begin," she said. A report released in May by the U.N. Children's Agency UNICEF and consulting firm Capgemini found that more than two thirds of youth worldwide are worried about climate change. Stippel said, "Anytime you get out in nature, the problems become more granular and you can take action." In a study published in Frontiers in Environmental Science in Feburary, 48% of participants in citizen science environmental projects reported less stress and anxiety than before they participated. ACCOUNTABILITY Linda Downsborough is the head of environmental sciences at IIE MSA. She slowly wade up the Wilgespruit River with a large net before finding shallow water. She then turned her back on the river flow, stomped the gumboots and continued her journey. Downsborough said, "You want whatever you kick up by stomping to flow into the net." After two minutes Downsborough looked into her net. She pointed out small sluglike creatures. After returning to the riverbank, Downsborough collected her findings and poured them into a container with her students to help identify the macroinvertebrates. The miniSASS (miniStream Assessment Scoring System) assigned a score to each organism in order to determine the quality of the water. The results will be displayed on an online map in order to identify polluted areas. Downsborough, along with her team, encourages citizen scientists to test other water-testing kits such as Freshwater Watch or WaterCAN. These tests can detect a variety of pollutants like excess nitrates and excessive phosphates. Activists can use the findings to mobilize for government action by uploading them online. WaterCAN and other civil society organizations released a report in April on the Umbilo River, revealing pollution including high levels E. coli bacteria. Based on their findings, they called for urgent repairs to infrastructure. The report stated that "Civil Society must continue to push accountability, create awareness within communities and build actions through citizen science." The eThekwini Municipal Water and Sanitation Department in Durban acknowledged receiving questions about the report but had not responded to a comment request by publication time. GroundTruth, a consulting firm that developed the miniSASS kit and trains citizen scientists, including more than 1,000 young people in KwaZulu Natal, is a company that helps train environmental consultants. Early June, Downsborough and Stippel gave a presentation on their research about public participation at the Citizen Science for Water Quality Conference held in the Netherlands. The IIE MSA initiative for water monitoring will be expanded across schools and campuses next year.
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What is the High Seas Treaty for protecting world oceans?
While many countries have taken steps to protect vast, ungoverned areas of the oceans around the world, their High Seas Treaty has yet to come into force. The U.N. Oceans Conference, which is taking place in Nice this week, hopes to change this. What is the High Seas Treaty? Signed in 2023, the treaty provides a legal framework to create marine protected zones on the “high seas”, or ocean areas beyond national jurisdiction. Less than 3% are currently protected, despite the fact that the oceans cover more than two thirds of our planet. The treaty includes 75 points that cover areas like protecting, caring for, and ensuring responsible usage of marine resources. It also contains a provision requiring environmental impact assessment of any economic activity in international waters. The treaty also seeks to ensure that every country has an equal and fair access to ocean resources. Officially, it's called the Biodiversity beyond National Jurisdiction Treaty. On Monday, French president Emmanuel Macron announced that 50 countries have ratified the agreement, and 60 are needed to make it effective. In addition to the High Seas Treaty and a U.N. biodiversity agreement for 2022, countries have agreed to conserve 30% of their territorial water. WHY DO WE REQUIRE AN OCEAN TREATY? The oceans are vital to coastal economies, supporting them through tourism, fishing and other activities, such as shipping, mining and offshore energy. The oceans absorb about one-third of the carbon dioxide (CO2), the main gas that drives climate change. Phytoplankton in the oceans provide half the oxygen on the planet. Marine life is struggling now, and the human industry and development is almost entirely responsible. Scientists at the International Union for Conservation of Nature say that more than 1,500 marine plants and animals face extinction. This number is likely to increase due to pollution, overfishing and ocean acidification. Deep-sea mining of rare-earth metals may also pose a threat to the ocean ecosystems in the coming years. Macron will urge countries in Nice to postpone seabed exploration until researchers have a better understanding of deep sea ecosystems. Scientists worry that governments may try to alter ocean chemistry in order to increase its ability to absorb CO2. This scenario could limit global warming, but researchers warn that it could have unintended effects. What are the next steps for the Treaty? The treaty is still 10 signatures short, according to Macron's announcement on Monday that 50 countries have ratified it. After 60 countries ratify the treaty, it will come into effect 120 days later. The next step is to set up the institutions and committees that will implement the treaty. Signatories are expecting to hold their first conference in a year. The United States, under the current president Donald Trump, is not expected ratify this treaty despite its participation in the original negotiations. What else is happening at the U.N. OCEANS Conference? At least 55 heads-of-state, business leaders, and civil society groups are expected to attend this five-day event. This week, in addition to discussions on the progress of the treaty, it is expected that delegates will also discuss overfishing and water pollution, as well as other threats to marine wildlife. Ocean-related financing is far behind other areas of sustainable investment. Ocean-related expenditures totaled $10 billion for the five-year period 2015-2019. The U.N. estimates every year that at least $175 billion will be needed for marine protection. The last U.N. Oceans Summit was in Lisbon, co-hosted with Kenya in 2022. The next summit, which will be co-hosted jointly by Chile and Korea in 2028, has been set. Virginia Furness is reporting, Katy Daigle is editing and Hugh Lawson is producing.
U.S. stock fluctuates, oil drops amid earnings and trade talks
Wall Street was in a state of flux on Tuesday, with gains and losses, as investors tried to balance corporate earnings, progress made by President Donald Trump’s multi-fronted tariff negotiations and the generally negative economic data.
The Dow Jones Industrial Average led the way, while all three major U.S. indexes rose modestly.
Canada's election was a rebuke of U.S. president Donald Trump's brutal trade policies and his comments about annexing Canada to become the 51st State in the United States.
Tim Ghriskey is a senior portfolio strategist with Ingalls & Snyder, based in New York. "They will be very strict on trade issues. They're probably insulted that Trump wants them to be the 51st State.
Ghriskey said, "I hope the rhetoric coming out of the White House subsides."
U.S. Treasury secretary Scott Bessent stated on Tuesday that tariff talks were ongoing. He said that Beijing was responsible for the U.S. China trade negotiations and that he did not expect any disruptions to supply chains as a result of these disputes.
According to two sources with knowledge of the situation, China has excluded ethane imports from its 125% tariff, the latest indication that the tariff situation remains fluid.
This week, the first-quarter reporting period is in full swing.
This week, four of the "Magnificent 7" artificial intelligence megacap stocks are expected to release their results: Meta Platforms (Microsoft), Apple, and Amazon.com.
Consumer confidence has deteriorated more than expected, and the number of job openings is down 3.9%.
Ghriskey stated that "consumer confidence has also dropped significantly." He added, "I think there's a lot of nervousness in the economy because of these trade issues and tariff issues." "There will be some pain at the consumer level."
The Dow Jones Industrial Average rose by 225.92, or 0.56 percent, to 40.453.51. The S&P 500 gained 10.79, or 0.19 percent, to 5,539.54. And the Nasdaq Composite increased by 13.18, or 0.07 percent, to 17.378.36.
Investors pared back initial gains in European shares as they scrutinized corporate earnings and kept an eye on tariff developments.
The MSCI index of global stocks rose by 2.26 points or 0.27% to 829.47.
The pan-European STOXX 600 Index rose 0.38% while Europe's broad FTSEurofirst 300 Index rose 8.18 points or 0.39%.
Emerging market stocks increased 4.72 points or 0.43% to 1,107.28. MSCI's broadest Asia-Pacific share index outside Japan closed up by 0.34%, at 575.73. Japan's Nikkei gained 134.25, or 0.38% points, to 35,839.99.
The dollar rose after Bessent made his comments about progress in trade negotiations, but it was still on track to record its largest two-month drop in over 20 years.
The Canadian loonie weakened against the dollar after the Liberals of Canadian Prime Minister Mark Carney retained power following the election on Monday. This was fueled by the backlash from Trump's tariffs, and his comments about Canada becoming the 51st State.
The dollar index (which measures the greenback versus a basket including the yen, the euro and other currencies) rose by 0.12%, to 99.16. However, the euro fell by 0.21%, at $1.1397.
The dollar gained 0.11% against the Japanese yen to 142.18.
The dollar fell 0.31%, to $1.3397.
The Mexican peso rose 0.03% against the dollar to 19.586.
The Canadian dollar fell 0.22% against the greenback, to C$1.39 a dollar.
The yields on U.S. Treasury 10-year bonds fell for the sixth consecutive day, reaching a new three-week-low following weaker than expected economic data.
The yield on the benchmark U.S. 10 year notes dropped 3.7 basis points from 4.216% to 4.179% late on Monday.
The 30-year bond rate fell 2.9 basis point to 4.6636%, from 4.693% at the end of Monday.
The yield on the 2-year bond, which is usually in line with expectations of interest rates for the Federal Reserve (Federal Reserve), fell by 2.5 basis points, to 3.66% from 3.685% at late Monday.
Oil prices fell as Trump's multi-fronted trade war increased the probability of a global recession, and fuelled fears that demand would be dampened.
U.S. crude dropped 1.93%, to $60.85 per barrel. Brent was down to $64.54 a barrel on the same day.
The dollar gained in value, while gold prices declined.
Spot gold dropped 0.9% to $3.311.29 an ounce. U.S. Gold Futures dropped 0.69% to an ounce of $3,310.00.
(source: Reuters)