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CTK reports that the EU has asked Czechs to delay signing contract for nuclear power plants.
Czech news agency CTK, citing an official letter sent to the Czech industry ministry, reported that the European Commission had asked the Czech Republic not to sign a contract for the construction of new nuclear power plants with South Korea's KHNP. CTK stated that the postponement will give the European Union executive time to investigate if KHNP received foreign subsidies which could distort EU's internal market. A Czech regional court temporarily stopped CEZ, a company in which the Czech government holds a majority stake, from signing an 18 billion dollar contract with KHNP, until it heard the complaint of the losing bidder EDF, a French firm. After the Czech antimonopoly office refused to accept its bid, the French group went to court in this month. EDF has complained to the Commission after losing the tender in last year. After the approval of the anti-monopoly agency, the Czech government wanted to sign a contract with KHNP in this month. State and CEZ insisted that KHNP was offering a better deal than EDF. CEZ and Industry Ministry didn't immediately respond to comments. CTK quoted CEZ CEO Daniel Benes, who said that the letter from the Commission was dated May 2, and that the French company was interested in stopping the construction of the plant.
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India's PVR Inox reports wider quarterly loss due to a tepid movie slate and sluggish spending in urban areas
PVR Inox reported a larger quarterly loss on Sunday, as the lacklustre lineup of new films and low urban spending dampened attendance. The company formed by the merger between PVR and Inox Labels reported an adjusted consolidated Loss of 1.06 billion Rupees ($12.48 Million) in the Fourth Quarter, compared to a Loss of 901 millions rupees one year earlier. PVR blamed the poor performance on an "uneven release calendar" for fiscal 2025, with March being a weak month. This lack of content was a major factor in the overall decline of admissions and revenues. Only the historical action film, "Chhaava", delivered a strong performance at the box office during this quarter. Subdued urban demand is a result of a combination of sluggish wages and high living costs, combined with a moderate inflation rate. The average ticket price increased 10.5% in one year, but the per-head expenditure on food and beverage dropped by 3.5%. This led to a 7.8% drop in revenue for the food and beverage segment. PVR Inox is rereleasing older films and offering weekday discounts to encourage audiences. Even so, occupancy dropped by 208 basis point to 20.5% and total admissions fell 6.3%, to 30.5 millions. PVR Inox’s total revenue decreased marginally, to 12,50 billion rupees.
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13 dead in explosion during Indonesian ammunition disposal
Officials from the Indonesian army told local media that 13 people were killed in an explosion during the disposal of expired military ammo in West Java, Indonesia, on Monday. This is the second such incident in Indonesia in less than a year. Kristomei Sianturi, a military spokesperson, told Kompas TV that nine of the victims are civilians and four are military personnel. The military is also investigating the incident's cause. Wahyu Yodhayana, another army spokesperson, stated in a television address that the explosion occurred when officers were completing their disposal of ammunition. He added that the investigation would include how civilians could have been so close to detonation sites. Kristomei stated that the area where the explosion occurred is a field in which such detonations take place routinely. He said that local residents usually gather to collect the scrap left behind by detonations. He added that the area had been cleared in order to guarantee safety in case there were any further explosions. The explosion on Monday is the second involving Indonesian ammunition in less than a year. A massive fire broke out in March of last year at an Indonesian depot that stored expired ammunition near Jakarta. This caused a series explosions. (Reporting and editing by Alasdair Pala)
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French nuclear waste project could cost as much as $42 billion, according to agency
The National Nuclear Waste Agency said that the new French nuclear waste storage project will cost between 26 billion euro ($28.93 billion), and 37.5 billion euro, an increase from the earlier estimate of 25 billion euros. Cigeo is a project located in the Grand East region of eastern France, between Reims, a wine producing city, and Nancy. It is expected to be the first long-term nuclear waste storage facility for France. Residents in the area have protested against plans to store 500 metres underground, due to begin development in 2027. The waste agency Andra said that a decree from the Ministry of Industry is expected to be issued by the end the year, finalising the cost, which will act as a guide until the next assessment. The cost of the project and the location will be reviewed again, at least by 2026. The construction could start by 2027, if the French nuclear authority approves of the application. The first waste packages will be received in 2050 and are expected to last for a century. $1 = 0.8986 Euros (Reporting and editing by Kirsten Doovan; Forrest Crellin)
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Gulf Stock Markets extend gains following US-China Trade Agreement
The Gulf stock markets were up early Monday morning, buoyed both by the rising oil price and progress in U.S. China trade negotiations. This was a positive sign as U.S. president Donald Trump prepared to visit this region. On Monday, the United States and China announced that they had reached an agreement to reduce reciprocal tariffs in order to end their trade war which has caused global economic disruption and shaken financial markets. A fragile ceasefire between India and Pakistan also seemed to ease geopolitical tensions. In the meantime, Ukrainian President Volodymyr Zelenskiy declared his willingness to meet Russian president Vladimir Putin for talks in Turkey on Thursday. The oil prices, which are the main source of income for the region and the key driver of markets, have risen on the expectation that a trade agreement will reduce the risk of an economic downturn. Brent crude futures rose 2.63% to $65.59 per barrel at 0858 GMT. Saudi Arabia's benchmark index rose by 1.4%. Financial sector stocks led a rise in most other sectors. Al Rajhi Bank (the kingdom's second largest lender in terms of assets) grew by more than 1%. Saudi Aramco has reported a 2.4% increase in its first-quarter profits, despite a drop of 4.6%. Sahara International Petrochemicals (Sipchem), which reported a net profit increase of more than 7% in the first quarter, rose by 2.9%. National Industrializations (Tasnee), on the other hand, rose by 2.3%. It posted a profit after reporting a gain of 895.8 millions riyals (US$238.84m), reversing its loss for the previous-year period. The main index of Dubai's shares rose by 0.7% due to strong performance in the financial and real estate sectors. Emirates NBD Bank increased by nearly 1,4%, while blue chip developer Emaar Properties rose 1.5%. Abu Dhabi's benchmark Index gained 0.5% thanks to a 1.6% increase in developer Aldar Properties. Qatar's benchmark stock index rose 0.6% for a third straight session, while Qatar National Bank, which is the largest Gulf lender in terms of assets, gained 0.8%. ($1 = 3.7507 Riyals) (Reporting and editing by Rachna uppal in Bengaluru)
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China tightens control on strategic mineral exports
China announced on Monday it would tighten controls on the entire supply chain of strategic mineral exports in an effort to maintain its dominance over materials that it considers vital to its national interests. China, which is the largest supplier of strategic minerals in the world, started imposing export restrictions on 2023. Minerals The sector is vital for sectors such as chipmaking, energy transition and defence. China's Commerce Ministry said that strengthening control over the entire export chain was the key to ensuring national security. A government meeting was held in Changsha, China, on Monday. The statement stated that representatives of the Ministry of Industry and Information Technology (MIIT), the Ministry of Public Security, and the State Security Ministry were present. It added that these entities must adhere to the principle "prevention before anything else" in order to track strategic minerals flows and prevent any illegal outflows. Beijing has launched a special crackdown on the smuggling strategic minerals, including gallium and germanium. The announcement on Monday came just a few hours after the United States announced that it had reached a deal with China. Tariffs are being slashed They are trying to put an end to a trade conflict that has shook the financial markets and disrupted global economic growth.
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Gold drops 3% after US and China agree to reduce reciprocal tariffs
Gold fell 3% on Monday, reaching a new low of more than a week after the U.S. announced that it and China had agreed to cut reciprocal tariffs. This boosted the dollar and weakened the appeal of the metal as a safe haven. As of 0812 GMT on May 1, spot gold had fallen 3% to $3,224.34 per ounce. U.S. Gold Futures fell 3.5% to $3228.10. The de-escalation in tensions between China, the U.S. and tariff reductions for 90 days is reducing demand for safe assets such as gold, said UBS analyst Giovanni Staunovo. Near-term prices will likely remain volatile. The higher tariffs will still weigh on the economy and force central banks, later in the year, to lower interest rates. Central banks may also use this price drop to increase their exposure." The U.S., China and other countries have reached an agreement to reduce reciprocal tariffs in a bid to end the trade war which has impacted the global economy. After talks with Chinese officials, U.S. Treasury Sec. Scott Bessent informed reporters that the two sides reached an agreement for a 90 day pause in measures. Last month, the U.S. imposed tariffs of equal value on China. This triggered a trade conflict that fueled fears of a global recession. The dollar index rose more than 1% versus its rivals. This made gold more expensive to other currency holders. Jigar Trivedi is a senior commodity analyst with Reliance Securities. He said that gold could fall as the dollar may appreciate, and the reduction of geopolitical risks could "hurt haven demand... The yellow metal could decline to $3.200/oz within the next few months. Traders will also be watching the U.S. Consumer Price Index on Tuesday to get a fresh look at the Federal Reserve’s monetary policy. Spot silver fell 2.3% to $11.96 per ounce. Platinum dropped 1.2% to $983.44, and palladium declined 0.9% to $967.35.
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Iron ore prices rise as US and China cut tariffs
Iron ore prices rose on Monday, as investor sentiment was lifted by the agreement between two of the largest economies in world to reduce reciprocal tariffs. On Monday, the United States and China announced that they had reached an agreement to reduce reciprocal tariffs. Washington and Beijing are seeking to end a global trade war which has caused financial markets to be on edge and disrupted economies around the world. After talks with Chinese officials at the Geneva Economic Forum, U.S. Treasury Sec. Scott Bessent informed reporters that both sides agreed to a 90-day pause in measures. He also said that tariffs will be reduced by more than 100 percentage points and would reach 10%. The highest-priced contract for September iron ore on China's Dalian Commodity Exchange closed the daytime trading 3.16% higher, at 718.5 Yuan ($99.63), the highest price since May 7. As of 0713 GMT the benchmark June iron ore traded on the Singapore Exchange rose 2.9% to $99,75 per ton. It is now approaching the psychologically important level of $100. Analysts and traders said that the magnitude of tariff reductions was a bit higher than expected and helped boost sentiment. Ore prices were also supported by a relatively stable demand, backed by the mills' desire to continue operations and profit-driven motivation. A survey by Mysteel revealed that the average daily hot metal production - which is typically used to gauge demand for iron ore - increased 0.1% to 2,46 million tons on May 8. This was the highest level since October 2023. The price of crude steel has been fluctuating with the rise and fall in concerns over U.S. Tariff hikes, and discussions on China's crude output being cut to reduce demand for this key ingredient. Prices for seaborne ore Steelhome's data shows that prices have dropped by 11% since the peak of $107 per ton for the entire year in February. Coking coal and coke, which were previously weak, have both recovered to a higher level. The benchmark steel prices on the Shanghai Futures Exchange have gained some ground. Rebar gained 1.52%, while hot-rolled coil grew by 1.51%. Wire rod increased by 1.39%, and stainless steel jumped 1.34%.
The devil is in the details.
Wayne Cole gives us a look at what the future holds for European and global markets.
Choose from "substantial", "constructive", a "first step", a "reached an important consensus", or "good news for world". The best is "as we say in China, as long as the food is delicious, timing does not matter".
These were the words of negotiators at the U.S. - China trade talks that took place over the weekend in Geneva. They sound more positive than the jingoistic rhetoric of the initial announcement by President Trump of his 145% tariffs.
It was not clear what the actual tariffs were. Later on Monday, a joint statement may provide more details, but markets do not believe the White House's claim that there is a "deal".
Investors trusting the word of an uni-party communist state more than the United States is a strange world.
Markets are relieved there were no weapons drawn during the discussions and Nasdaq and S&P futures have gained almost 2% and 1.4% respectively. European stock futures are up about 0.8%.
Treasuries are being sold in a knee-jerk reaction as the market continues to reduce its expectations about the future pace of Fed rate reductions.
Now, the odds of a June easing have been priced at 17% and July at 59%. Futures suggest 63 basis point cuts for this year compared to 110 bps at mid-April.
The fragile ceasefire between India and Pakistan helped to lift the mood, while Ukrainian president Volodymyr Zelenskiy announced that he would be ready to meet Vladimir Putin for talks in Turkey on Friday.
Analysts believe that the first impact of tariffs on the economy will be seen in the report for May. Retail sales for April are expected to remain flat, but the risks to the downside will be high due to the impact of the import levies on consumer sentiment.
Tariffs are not expected to be applied to the 747 Trump intends to accept from Qatar's royal family, which is decked out in gold. It seems that membership comes with its own privileges.
Market developments on Monday that may have a significant impact
ECB members Buch and Cipollone are present at the Eurogroup. Also, BoE Deputy Governor Lombardelli is in attendance as well as policymakers Greene Mann Taylor and Greene.
Kugler, Fed Board Governor, speaks about the economy
(source: Reuters)