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China's Xi signss treaty to enhance ties with Central Asia
China's President Xi Jinping has signed a treaty that will strengthen ties with Central Asian countries. Beijing is looking to deepen its cooperation with this resource-rich area in the areas of trade, energy, and infrastructure. Beijing has intensified its efforts since Russia invaded Ukraine to strengthen economic ties with Central Asian countries, which are traditionally in Russia's spheres of influence. This is due to their strategic location and abundant energy resources. Xinhua, the official news agency of China, reported that at a regional summit held in Astana, Kazakhstan's capital, Xi hailed a landmark by signing a treaty establishing "permanent friendship and good neighbourliness" with leaders from Kazakhstan, Kyrgyzstan and Tajikistan. Turkmenistan, Uzbekistan and Turkmenistan also signed the document. This week's summit is the second of its kind, after the pompous inaugural meeting in Northwest China in 2023. Both times, the summits coincided with G7 meetings. "At the moment, the world is undergoing accelerated changes, unseen for a century. We are entering a period of turbulence, and transformation," Xinhua reported Xi saying during a speech to the summit. "Trade Wars and Tariff Warfare Produce No Winners, and Unilateralism, Protectionism, and Hegemonism will harm others as well as oneself," he stated, in an apparent jab at the United States, which had escalated tariffs against Beijing. "China is prepared to work with Central Asian nations to safeguard international justice and oppose hegemony and power politics," Xi stated. He also promised 1.5 billion yuan (208.86 millions) in grant aid to Central Asian countries to support their livelihoods and development projects this year, and called for greater cooperation in areas such as trade, minerals, and agriculture. Beijing is keen to consolidate its relations with regional partners despite a truce in trade with the U.S. China's bilateral trade with five Central Asian nations reached a record of 286.42 billion yuan during the first five month this year. This represents a 10.4% increase year-on year, according to Xinhua, citing Chinese Customs. Turkmenistan is the only Central Asian country with a surplus in trade with China. Turkmenistan is a major natural gas supplier to China. Kazakhstan and Kyrgyzstan have trade deficits in the tens or billions of dollars with China. ENERGY AND MINERAL COOPERATIONS According to the summaries published by the Chinese Foreign Ministry, Xi requested expanded cooperation with regional leaders in the areas of natural gas, minerals and international railway. In meetings with the Uzbek and Kyrgyz presidents on Tuesday, he urged progress on the China-Kyrgyzstan-Uzbekistan railway, an overland route bypassing Russia Since the 1990s, the project has been in the spotlight. However, it gained renewed importance when the sanctions against Russia led to shippers from China and Europe not sending their goods through Russia. In the event that other routes are disrupted, China can use alternative routes to obtain fuel and food. The Central Asia route may help reduce the time it takes to transport freight between China and Europe in the future. In a separate discussion with Turkmen President Serdar Berndymukhamedov Xi stated that "both sides must expand the scope of natural gas collaboration, explore cooperation outside of resource fields, and optimize their trade structure." $1 = 7.1818 Chinese yuan renminbi (Reporting and editing by Alex Richardson, Bill Berkrot and Ellen Zhang)
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US withdraws from two more bases in Syria, alarming Kurdish forces
Reporters visiting the region found that U.S. troops have now withdrawn from two additional bases in northeastern Syria. This is part of a larger troop withdrawal, which, according to the commander of U.S. backed Syrian Kurdish Forces, has allowed a resurgence by Islamic State. Reporters who visited these two bases last week found that they were mostly deserted. They were both guarded only by a small number of Syrian Democratic Forces, the Kurdish led military group Washington has supported in its fight against Islamic State since a decade. The razor wire that surrounded the perimeters of the bases occupied by a military coalition led by the United States had started to sag. One Kurdish politician, who lives in one of the bases, said that there are no U.S. soldiers there. SDF guards on the second base confirmed that troops had recently left, but refused to specify when. The Pentagon declined comment. Reporters are the first to confirm on the ground that the U.S. retreated from the Al-Wazir base and Tel Baydar in Hasaka Province. The number of bases that U.S. forces have left in Syria since President Donald Trump's election has now reached at least four. The Trump administration announced this month that it would reduce its military presence to just one base in northeastern Syria, which is under the control of SDF. The New York Times reported that in April, troops could be reduced from 2,000 down to 500 as part of the drawdown. The SDF has not responded to questions regarding the number of troops currently in Syria and U.S. bases that are open. SDF commander Mazloum Abdi said that the presence of just a few hundred soldiers on a single base was "not enough" in order to stop the Islamic State threat. He spoke at Al Shadadi U.S. military base. The threat posed by the Islamic State has increased significantly in recent years. This is the plan of the U.S. Military. He said that we have known about the plan for some time. We are working with them so there are no gaps, and that we can continue to put pressure on Islamic State. Abdi spoke with on Friday, just hours after Israel began its air war against Iran. He refused to comment on the impact of the Israel-Iran conflict on Syria. Instead, he said that he was safe at a U.S. military base and hoped that it wouldn't spill over. Two SDF security sources confirmed that within hours of the interview, U.S. defense systems shot down three Iranian-made rockets which were aimed at the Al Shadadi Base. ISIS IS ACTIVE IN SYRIAN CITIES The Islamic State (also known as ISIS or Daesh) ruled large areas of Iraq and Syria between 2014 and 2017 during Syria's Civil War. It imposed a vision for Islamic rule, which saw locals beheaded in city squares and Yazidi minorities sex-trafficked. Foreign journalists and aid workers were also executed. From its strongholds of Raqqa, Syria, and Mosul, Iraq, the group launched deadly attacks on European and Middle Eastern nations. More than 80 countries, led by the United States, waged an extensive campaign for years to end the control of the group on the territory and defeat it. They supported the Iraqi forces as well as the SDF. Since the December ouster of Bashar al Assad, the Syrian dictator, by a group of islamist rebels. Abdi claimed that ISIS cells were active in several Syrian towns, including Damascus. He also said a group foreign jihadists, who had previously fought against the Syrian regime, had joined ISIS. He did not go into detail. He claimed that ISIS had seized arms and ammunition from Syrian government depots during the chaos following Assad's downfall. Kurdish officials reported that Islamic State has already started moving around U.S. military bases, which were recently shuttered. This includes near Deir Ezzor, and Raqqa. These cities used to be strongholds of the extremist group. Abdi stated that ISIS had launched a series attacks in areas controlled by the SDF east of the Euphrates River. At least 10 SDF soldiers and fighters were killed. Abdi said that a roadside explosion targeted a convoy near a U.S. military base, where he conducted the interview. Reporting by John Davison, Orhan Qereman and Peter Graff.
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Dutch prices increase as Middle East tensions cause LNG concerns
Dutch wholesale gas prices increased on Tuesday afternoon, amid increasing concerns that the escalation in the Iran-Israel conflict will impact the loading and shipping of liquefied gas (LNG), causing a tightening of the market. According to LSEG, the benchmark Dutch front-month contract for the TTF hub increased by 1,28 euros to reach 38.73 euros per Megawatt Hour (MWh) at 1454 GMT. The contract for August gained 0.76 euros to 38.90 Euro/MWh. The British contract was 0.12 pence higher at 93.32 cents per therm. A trader stated that the gains were driven by events in the Middle East, and the signs that LNG producers were taking extra cautionary measures in the region. Qatar says gas production is still steady at South Pars after an Israeli airstrike hit the field on Saturday. QatarEnergy told tankers on Tuesday to stay outside the Strait of Hormuz, and only enter the Gulf the day before loading. The trader said that if more producers made similar statements, the prices could go up even higher. On Tuesday, the European Commission proposed official legal measures to implement a ban on Russian Gas Imports. The aim is to end the EU's dependence on Russian Energy by the year 2027. Austrian official says the European Union is open to resume Russian gas imports if there's a peace agreement between Russia and Ukraine. The Commission's proposals were designed to be able to pass into law if a majority of countries approved them, so that one or two countries could not block it. The benchmark contract on the European carbon markets has fallen by 0.36 euros to 74.98 euro per metric ton. Reporting by Nina Chestney and Nora Buli, London; editing by Susan Fenton
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Honda launches surprise rocket test to reach space by 2029
Honda announced in a surprising announcement that it had successfully launched and landed its prototype reusable space rocket on Tuesday. This marks a major milestone in the company's goal to achieve suborbital flight by 2029. Honda R&D's research arm, which is the second largest carmaker in Japan, has successfully landed a 6.3-metre (20.06-foot) experimental launch vehicle that was reusable after reaching a height of 271 metres (880.9 feet) at the company's test facility located in the northern Japanese space town Taiki. Honda said that "no decision has been made about commercialization of these rocket technology, but it will continue to make progress in fundamental research in order to achieve a technological capability that would enable a launch into suborbital space by 2029." Honda announced in 2021 that it was researching space technologies, such as reusable launchers. However, it had not revealed the specifics of the test. Suborbital launches may reach the edge of outer space, but do not enter orbit. The company said that studying launch vehicles could "contribute more to the people's everyday lives by launching its own satellites using its rockets." This would lead to a variety of services compatible with Honda's other businesses. SpaceX's Falcon 9 has been leading the way in developing reusable launch vehicles for commercial space missions. However, Blue Origin as well as companies from China and Europe have also developed reusable rockets. Last month, Innovative Space Carrier of Tokyo announced that it would test-launch in December a prototype reusable reusable rocket using an American engine. Toyota, Honda's main rival and the largest automaker in terms of sales, announced earlier this year that its research arm had invested in Taiki rocket maker Interstellar Technologies, to support mass production. The Japanese government has set up a multi-billion dollar fund to support private rockets, space satellites and missions. It aims to double the size of its space industry to 8 trillion yen (55.20 billion dollars) by early 2030s. ($1 = 144.9220 yen)
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Wall Street falls as Middle East conflict escalates
Wall Street's major indexes fell on Tuesday, as the Israel/Iran conflict entered its 5th day. This weakened investor confidence globally ahead of the Federal Reserve’s upcoming decision regarding monetary policy. The conflict between Israel and Iran, which began Friday with Israel attacking Iran's nuclear facility, has caused concern that it could cause bottlenecks in oil exports to the oil-rich Middle East. Wall Street believes that the situation will be contained. "The market is paying attention, but there is no panic at the moment," said Larry Tentarelli of Blue Chip Daily Trend Report, chief technical analyst. Oil prices remain high due to uncertainty, and U.S. energy companies are gaining. Chevron rose 1.8%, while Exxon gained 1.7%. The rise in oil prices coincides with the Fed's decision to maintain interest rates on Wednesday. According to CME Group’s FedWatch, money market traders have priced in 46 basis points in rate cuts by 2025. There is a 57% probability of a rate cut of 25 bps in September. At 10:05 am. At 10:05 a.m. ET, the Dow Jones Industrial Average dropped 109.04, or 0.26% to 42,406.05, while the S&P 500 fell 21.71, or 0.36% to 6,011.40, and the Nasdaq Composite lost 88.94, or 0.45% to 19,612.28. Ten of the eleven major S&P sub-sectors declined. Healthcare stocks fell the most with a decline of about 0.8%. Energy stocks, on the other hand, gained 1.6%. The U.S. Retail sales The factory production in May was lower than expected, and barely increased last month. The U.S. Senate Republicans released late Monday proposed changes to the President Donald Trump’s sweeping tax cut bill, which had passed through the House of Representatives earlier this year. Solar stocks dropped after Senate changes to Trump’s tax-cut legislation revealed that solar, wind and other energy tax credits would be phased out by 2028. Enphase Energy shares fell 23.3%, while Sunrun shares dropped 39.4%. Invesco Solar ETF fell 8.8%. The shares of nuclear power companies have risen after the Senate extended credit for nuclear energy until 2036. Oklo shares rose 3.3% while Nano Nuclear Energy shares rose 4.3%. A rise in U.S. Treasuries, as investors seek out traditional safe-havens amid increased geopolitical unrest, has pushed down yields across the curve. The yields on the benchmark 10 year fell by about 2 basis points, to 4.43%. The majority of megacaps and growth stocks declined. Tesla fell 1.9% while Alphabet dropped about 1%. Eli Lilly, among other players, fell by 1.1% following its agreement to purchase Verve Therapeutics up to $1.3 Billion. Verve shares soared by 73.7%. T-Mobile dropped 3.9% after Japan's SoftBank raised $4.80 billion by selling 21.5 million shares of the wireless carrier at $224 per share, according to an. On the NYSE, declining issues outnumber advancers in a ratio of 1.67 to 1.75. The S&P 500 recorded seven new 52-week lows and eight new highs. Meanwhile, the Nasdaq Composite registered 31 new highs with 50 new lows. Reporting by Kanchanachakravarty in Bengaluru and SukritiGupta; editing by MajuSamu.
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Gold prices rise on Middle East tensions, but all eyes are on the Fed meeting
The gold price rose on Tuesday, as geopolitical tensions in the Middle East escalated. Attention also turned to the U.S. Central Bank's policy announcement on Wednesday. Silver surged to its highest level in 13 years. As of 10:00 am (14:00 GMT), spot gold rose 0.2%, to $3,390.73, while U.S. futures gold fell 0.2%, to $3,410.40. Jim Wycoff is a senior analyst at Kitco Metals. He said that geopolitical uncertainties, such as the Israeli-Iran conflict, which will likely escalate before de-escalating, would keep the market's safe-haven bids in check. Israel's Military said Iran's Military Leadership is "on the Run" and that they killed Iran's Wartime Chief of Staff Ali Shadmani over night four days after his appointment, replacing another top commander who was killed in the strike. U.S. president Donald Trump stated that he wants a "real ending" to the dispute over Iran's nuclear program and suggested he might send senior American officials in order to meet the Islamic Republic, as the Israel-Iran war has raged on for the fifth day. On Wednesday, the Federal Reserve announces its policy decision, followed by Jerome Powell's Press Conference. It is expected that the U.S. Central Bank will keep its benchmark overnight rate at 4.25% to 4.50%, as it has done since December. Gold's appeal is boosted by a low-interest rate environment, as well as geopolitical unrest. A survey by the World Gold Council revealed that central banks expect to see their gold holdings increase as a percentage of their reserves over the next five year period. The data showed that retail sales in the United States fell more than expected, but consumer spending was still supported by wage growth. Spot silver rose 2.1% to $37.1 an ounce, its highest level since Feb 2012. Wycoff said, "The next target for silver bulls is 40 dollars. I think it's possible in the next few weeks or even sooner." Palladium rose 1.7%, to $1 047.23, while platinum increased 0.4%, to $1 251.81. (Reporting by Sarah Qureshi in Bengaluru; Editing by Jan Harvey)
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IAEA: Israeli strike hit Iran's Natanz underground enrichment plant directly
The U.N. nuclear watchdog revised its initial assessment on Tuesday after initially reporting that it was only indirectly hit. The International Atomic Energy Agency (IAEA) has provided updates since Israel launched a wide-ranging attack on Iran last Friday. However, it hasn't been able conduct inspections. IAEA previously stated that an above-ground enrichment pilot plant in Natanz had been destroyed, but the larger underground facility was not directly affected. However, IAEA Chief Rafael Grossi claimed on Monday that its centrifuges were very likely badly damaged due to a strike against the plant's electricity supply. On Tuesday, it was reported on X that "based on continued analysis high-resolution imagery collected after the Friday attacks, the IAEA identified additional elements which indicate direct impacts on underground enrichment chambers at Natanz." The report said that there were "no changes to report" in Iran's other two major nuclear sites: Isfahan, and Fordow. Grossi said that there were no visible damages at Fordow where Iran enriches uranium to 60%, which is close to 90% weapons grade. The plant, dug deep in a mountain, has been enriched to this level. IAEA reported that several facilities at the Isfahan Nuclear Complex were destroyed. This included Iran's facility for converting uranium to a form which could be fed into enrichment centrifuges. (Reporting and editing by Peter Graff.)
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The US manufacturing output barely increased in May
The U.S. factory output barely increased in May, as a surge of motor vehicle and plane production was partly offset by weakness elsewhere. And the outlook for manufacturing is still clouded by trade tariffs. The Federal Reserve announced on Tuesday that manufacturing output increased by 0.1% in May after a 0.5% drop in April which had been downwardly revised. The Federal Reserve said on Tuesday that economists polled had predicted a rebound of 0.2% in production after an earlier reported drop of 0.4%. In May, the production at factories rose 0.5% year-over-year. The President Donald Trump’s changing tariffs policy is a major headwind for manufacturing, which represents 10.2% of GDP and heavily relies on imported raw materials. Trump has recently increased the steel and aluminum tariffs to 50%, up from 25%. A 25% tax is included in the array of tariffs. Trump argues that the duties are necessary to revive the U.S. industry base which has been in decline for a long time. However, economists argue that this cannot be achieved within a short period, citing the high costs of production and labor as some of the challenges. The production of motor vehicles and parts increased by 4.9% in May, after falling 2.3% in April. The production of miscellaneous transport equipment and aerospace increased by 1.1%. The production of nonmetallic minerals, machinery and fabricated metals all declined by at least one percent. Durable manufacturing production increased by 0.4%. The nondurable manufacturing sector's production fell by 0.2% due to a drop in printing and support products, petroleum and coal, as well as food and beverage, tobacco and tobacco products. Production of nondurable goods fell by 0.8%, with a drop of 3.2% in energy-related nondurable goods. The mining output increased by 0.1% in August after a 0.3% drop the previous month. Utilities output fell by 2.9%. A 3.6% drop in electric utilities output was more than offset by a 2.7% rise in natural gas utilities production. This followed a 4.9% increase in April. The overall industrial production dropped by 0.2% in May after increasing by 0.1% in April. In May, it increased 0.6% year-over-year. The capacity utilization rate for the industrial sector fell from 77.7% to 77.4% in April. This is 2.2 points below the average for 1972-2024. The manufacturing sector's operating rate remained unchanged at 76.7%. This is 1.5 percentage points lower than its long-term average. Lucia Mutikani, Lucia Ricci and Andrea Ricci (Reporting)
Germany is down on wind turbines, but France has a nuclear deal with Germany
The wholesale electricity market in Europe showed mixed results on its two major markets on Tuesday morning. French prices rose on tighter supply locally, while German prices fell on the expectation of increased wind power output.
The LSEG analysis pointed out that the increased production of brown coal and natural gas will also boost Germany's electricity supply.
By 0930 GMT the French baseload day-ahead contracts had risen by 12.8%, to 53 euros (61.25 dollars) per megawatthour. The German equivalent contract was down by 14.5%, at 77.5 Euro/MWh.
On Wednesday, wind power generation is expected to increase by 4.3 gigawatts in Germany to 11.3 GW.
The French nuclear capacity has decreased by two percentage points to 69%.
The power demand in Germany and France was flat on Wednesday.
The average temperature is expected to rise by 3-4 degrees Celsius next week compared to Tuesday's levels. This comes at a moment when the energy markets closely monitor weather conditions, as they determine timing and intensity for air conditioning.
The German baseload for the year ahead increased by 0.3%, to 92.3 Euros/MWh. In contrast, the French equivalent fell 2.3% at 66.7 Euros/MWh.
The benchmark contract on the European carbon markets fell 0.7%, to 74.83 Euros per metric ton.
In its monthly report for the month of June, Swiss utility Axpo stated that developments in U.S. China and U.S. Europe tariff negotiations would remain a source of major uncertainty on all commodity markets in the months to come.
The EEX bourse in Germany celebrated its 25th anniversary on Monday. During this time, the exchange has grown from a small platform for electricity to a global leader for energy, environment products, freight, and agriculture.
(source: Reuters)