Latest News
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SAIL and Krakatau Steel to invest $350 Million in a stainless steel plant
Two Indian sources said that India's state run Steel Authority of India and Indonesia's Krakatau Steel are planning to invest up to $350 million in a stainless-steel slab plant in Indonesia. Sources said that the?plant?will have a?capacity of?500,000 metric tonnes and will be operational in the next three to five years. SAIL and Krakatau Steel have signed a preliminary joint venture agreement in Indonesia to produce stainless steel plates. This was done during the visit of Indian Prime Minister Narendra Modi to Indonesia earlier this month. Sources said that SAIL will send a "technical" team to Indonesia in the next month to produce a feasibility study. After this, both companies will finalise details such as the equity structure, timeline for government approvals, and other details. Sources declined to be identified because the discussions aren't public. SAIL didn't respond to an email sent Monday seeking comment. Krakatau Steel?did not respond to an email request for comments made on Tuesday. Sources?said that the proposed plant's capability could be?expanded once it becomes operational. One source said that partnering with Krakatau Steel could help SAIL obtain nickel at a lower price, which is a crucial raw material for stainless steel production. Indonesia produces more than half of the world's nickel. The second source said that SAIL would consume all the output from the planned Indonesian facility, and then bring the stainless steel plates to its Salem plant to be rolled and finished. Salem is located in Tamil Nadu, a southern Indian state. Sources said that the state-run steelmaker would primarily sell the finished product to Indian clients, with a small portion?possibly being exported to Europe and the Middle East. According to commodities consultancy BigMint, SAIL was India’s third largest?steel manufacturer in the fiscal year ending March 2025. It held a 10.1% market share. India, which is the second largest producer of crude steel in the world after China, has identified Indonesia as well as more than a dozen?countries to cooperate with the steel industry. This will boost exports and ensure key raw materials. BigMint data shows that India's finished steel consumption has increased by 55% in the last five years. This is more than double the increase in production of 42%. Indian steelmakers are "pivoting" to the domestic market in order to offset weaker imports from Europe and Britain, but Chinese steel is sabotaging that strategy. (Reporting from New Delhi by Neha Arora; Additional reporting in Jakarta by Fransiska Nanangoy; Editing by Mayank Bhadwaj, Christian Schmollinger).
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Stocks fall as Mideast conflict reignites and Fed decision looms
U.S. stock prices fell, while oil and Treasury yields rose, as the fighting in the Iran war resumed just hours before the highly anticipated 'Federal Reserve interest rate decision due later on Wednesday. Although the Fed is expected to keep rates unchanged, traders have priced in roughly 34% of a rate hike. This is because rising oil prices are reigniting concerns over inflation which remains above the U.S. Central Bank's annual target of 2%. The markets have fully priced in a Fed rate hike for the September meeting. Chris Low, FHN Financial's chief economist, said that if oil prices continue to rise in September, then the Fed will determine that the shock has lasted for long enough to warrant a rate increase, or increases. The market also believes that some participants will make the case for rate hikes today...and there's a good chance they can convince a majority to support them. After major airstrikes resumed, oil prices rose more than 6%. This quelled hopes of an imminent end to Iran's war. This rally was exacerbated by data from the industry showing a decline in U.S. crude inventories. The Fed chairman Kevin Warsh prefers to give less "forward guidance" on the Fed's probable monetary path. The yield on the benchmark U.S. 10 year notes increased 2.45 basis points from late Tuesday to 4.629%. The Dow Jones Industrial Average dropped 1.37% to 52 024.98, the S&P 500 declined 0.62% at 7,382.73 while the Nasdaq Composite was down 0.83% at 24,670.23. EARNINGS TO SET TONE Investors will also be waiting for a wave key earnings. Microsoft and Meta are due to report their results after the close of markets, followed by Amazon.com, and Apple later in this week. Investors have questioned the sustainability of AI spending boom amid signs that U.S. major companies are continuing to invest billions in the technology and continue to drain free cash flow. The focus is now on returns from investment, not spending plans. Investors are looking for evidence that AI capex generates revenues right now and also strengthens future growth prospects, said Gina Martin 'Adams, Chief Market Strategist at HB Wealth. As China's competition intensifies in both the race to develop advanced chip models and Chinese firms rolling out cheaper AI models, there is a growing concern. Even a six-fold increase in SK Hynix’s quarterly profit failed to meet expectations, sending the shares tumbling by 9.61%. South Korea's KOSPI fell almost 6% in a single day, after falling more than 10% and reaching a three-month high. South Korea is responding by introducing additional 'curbs' on leveraged single-stock exchange-traded fund, or ETFs. This includes a cap that would limit an individual investor's investment to 20% of total assets. The pan-European STOXX 600 fell by 0.21% while Europe's FTSEurofirst 300 fell by 0.28%. The MSCI All Country World Price Index dropped by 0.57%, to its lowest level since June 26.
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Hungary's Paks Nuclear Plant will shut down one reactor due to a drop in the Danube water levels
Operator MVM announced that the Paks nuclear plant in Hungary will shut down one of the 'four reactors' at a time of?1300 GMT on Wednesday due to record low water levels along the Danube River, which provides cooling water for the facility. On Monday, the plant had already cut output by 254 Megawatts at another unit. The plant operates four Russian-built nuclear reactors with a combined 2 gigawatts of capacity. It produces almost?half of Hungary’s electricity. The shutdown on Wednesday will reduce production to?about 60 percent of its capacity. It follows?contingency steps taken in June, during a heatwave record. Authorities exempted this plant from temperature limits for discharged cooling waters. The water levels along the Danube are now at new record lows. This has disrupted cargo and river cruises on one of Europe's most busy?waterways. The Environment Minister Laszlo Gajdos stated earlier on Wednesday that the Hungarian water management authorities are ready to assist in ensuring cooling water supplies for the plant. He said that the authorities had placed four pumping pontoons, and two floating cranes near Paks in preparation for a possible deployment as water levels are expected to continue to drop over the next few days. Reporting by Gergely szakacs and Anita Komuves. Mark Potter edited the article.
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NextEra and Brookfield plan a $100 billion Kentucky datacenter campus
NextEra Energy and Brookfield are building a $100 billion campus of data centers at an 'ex-uranium enrichment site' in Paducah, Kentucky. The soaring demand for electricity in the United States is driving companies to invest heavily into artificial intelligence data centres and other technologies that strain an aging U.S. electric grid. NextEra is the largest U.S. power company and will provide 2.6 GW in battery storage and 2 gigawatts (GW) of natural gas to support the datacenter. Brookfield, on the other hand, will own and operate the 1.8 GW campus. One gigawatt can power approximately 750,000 homes. The campus will be built on the Department of Energy’s Paducah Site. This site was originally constructed in 1952 for the production of enriched uranium, but it was closed down later. NextEra said the project complies with the Trump Administration's "Ratepayer Protection Pledge" which seeks?to ensure that companies building and using data centres?pay over?and above normal rates to avoid costs being passed on to average households. Brookfield CEO Bruce Flatt said in a statement that "the Department of Energy Paducah Site will be the seed of a plan to invest 100 billion dollars?in AI Infrastructure". The project should be completed in 2032. Reporting by Vallari Shrivastava, Bengaluru. Editing by Tasim Zaid
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Allied Gold's $4 Billion sale to China's Zijin falls through, lands a $295 M investment
Zijin Gold & Allied 'Gold has scrapped its planned C$5.5 Billion ($3.90 Billion) buyout. Instead, the?Chinese?company took a 9.2% share for around $295 M. In premarket trading, shares of Allied Gold listed in the U.S. fell by nearly 15%. The companies announced on Wednesday that they had mutually agreed to allow the deadline of July 29 to expire as "there was no reasonable likelihood" that the remaining conditions would be met in a reasonable time frame. Allied also cited broader external factors affecting trans-border transactions at this scale but did not provide any further?details. Zijin Gold operates mining operations in Asia, Africa and South America, while the Canadian firm has gold mines,?development and development projects on the Ivory Coast, Mali, and Ethiopia. In January, Zijin announced its agreement to purchase Allied for C$44 a share. ZIJIN?REMAINS INVESTOR Zijin has agreed to purchase approximately 12.8 million newly-issued Allied shares for?C$32.55 each in a private placing for the '9.2% stake. The transaction is expected to close around August 10. Allied stated that it 'expects' to use the proceeds - including the completion and ramping up of the Kurmuk Mine in Ethiopia and the expansion of the Sadiola Mine?in Mali - to advance growth initiatives. It also said they expect the proceeds -including increasing production – at their Ivory Coast operations, and funding exploration across the business. ($1 = 1.4098 Canadian dollars) (Reporting by Arunima Kumar in Bengaluru; Editing by Vijay Kishore)
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S&P says El Nino is unlikely to affect ratings for the time being
One of S&P Global’s top analysts said that El Nino will not 'by itself' lead to sovereign ratings downgrades, unless it is significantly worse than expected and governments take costly measures to support the affected countries. Joydeep Mukherji is S&P's Latin America lead ratings analyst. She said that the rating impact would be determined by the severity of the droughts and flooding caused by a potential "super" El Nino, as well as how policymakers handle the fallout. Mukherji stated in an interview that "if it's a flood or a dry spell that disrupts economic activity, then you assume?it will pick up within six months, twelve months." If that's the only thing that happens, ratings should be able?to withstand that kind of stress." The key factor is more likely to be the response of the governments in the hardest-hit countries. Mukherji stated, "If there is a small fiscal intervention to help those affected by the crisis, then that's a good thing." However, broader measures like a control on fuel or electricity prices could increase fiscal pressures. He said: "Suddenly, you've got a fiscal issue on the side. Not just the disruptions caused by natural disasters." The government faces a difficult choice: either they allow a part of the cost to be borne by businesses and households, or they take on a greater share through increased public spending, larger deficits, and more borrowing. He said that policy response was key. "Do governments share or spare the costs or do they take it all on themselves in their balance sheet by increasing deficits and debt?" He said that countries with flexible exchange rate may be better able to absorb weather-related shocks. As examples, he cited Colombia and Peru as two countries where economic impacts could be "substantial". The 'political tools' available to maintain competitiveness in a country without its own currency, such as Ecuador with the dollar, are fewer. S&P does not expect El Nino will trigger a negative rating wave. He warned that there is still a lot of uncertainty about the magnitude of the phenomenon.
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EU: Wildfires moving east threaten Italy and Greece
Greece, Italy and Central Europe will face increased 'wildfire' risk in the next few weeks. This is despite the fact that wildfires are still raging in Spain and France. Maria Zuber, the head of EU's Emergency Response Coordination Centre said that the heatwave would make the next few days "very difficult" for France. She also warned other countries to prepare themselves for "imminent disasters". Zuber told reporters that the next danger was already moving towards Greece and Central Europe. "Greece was spared for the moment, but now we know that it is going to Greece. "Italy faces risk at the start of August. We will need to see what will happen with the Iberian Peninsula because if it is there too, we'll have all Europe on blaze," she said. The forecast includes weather conditions that can help fires spread quickly, including high temperatures, dry, windy air and lack of rain. Climate change intensifies the hot and?dry conditions, which allow wildfires spread more quickly. Last year, Europe experienced its worst wildfires season ever. More than a million acres of land were burned. Zuber stated that Europe's fire situation so far this year was similar. She said, "We could be on the verge of another record." The EU centre coordinates?the deployment of aircraft and firefighters in countries that need emergency assistance, utilizing?resources pooled and rented by European countries. The EU centre has sent seven planes, four 'helicopters' and three 'ground firefighting teams to Spain and France. Zuber explained that not all aircraft in the EU fleet were currently in use. Some of them are already pre-stationed to be ready for deployment in Eastern and Central Europe, where the threat is increasing. (Reporting and editing by Alison Williams; Kate Abnett)
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"There's nothing Left": French wildfire victims return to their burned homes
Raphael Fohanno was shocked to see that his parents' house was reduced to a smouldering cinder. The 18-year old said: "Right here was the livingroom; the sofa was in the corner, the TV, a coffee-table, a vase and the printer. Everything was there." She was looking at the charred wood and mangled steel of the home that the family had lived in for the past seven years. It's brutal. The worst part is feeling helpless. "It's horrible for me to think that I can't help with anything, not even my pets." His parents, sister and other family members were evacuated via helicopter while he was out. His parents have returned to Biscarrosse already to check on the damage. "It is a shock, to think that only an hour ago I was in my bedroom and had everything, and now there's nothing." Fohanno said, "It's really sad." MEMORIES FUMED UP IN SMOKE A fire that started on Thursday began last week in Biscarrosse. The town has a population of 14,000 and is located 40 km south of the Cap Ferret peninsula. Residents have slowly been allowed to return to certain neighbourhoods after being evacuated. This included a children's camp and an aged care home. France is experiencing a wildfire season unlike any other. Around 220,000 people have been forced to leave their homes, in what President Emmanuel Macron called the worst wildfire crisis in France since World War Two. The temperatures will rise on Wednesday and create more volatile conditions. On Tuesday, Interior Minister Laurent Nunez stated on X that it took 550 firemen and 450 officers to put out the Biscarrosse blaze. Beatrice Dubaquier discovered that her house had been destroyed when she returned to it on Sunday evening. Her family searched through the debris and found broken pieces of crockery. A mug had been given to her as a gift for a birthday, a dish was given to her and 'her husband at their wedding. Dubaquier described her emotions as being on a rollercoaster. Lucie, her daughter, recalled her younger sister's first steps and first words in the home. Lucie said, "It was pretty difficult to see all those memories burn up." (Written by Elizabeth Howcroft, edited by Gabriel Stargardter & Alison Williams).
Trump announces 25% tariffs on India starting August 1.
On Wednesday, President Donald Trump announced that the United States would impose a 25 percent tariff on all goods imported from India beginning August 1.
He did not specify the amount of the penalty or the reason for it.
Trump said in a Truth Social article that "India is our friend but we have done very little business over the years because their Tariffs were far too high. They are among the highest in World and they had the most obnoxious and strenuous non-monetary trade barriers of any Country."
"They've always bought a large amount of their military gear from Russia and are Russia’s largest buyer for ENERGY along with China at a moment when everyone wants Russia STOP the killing in Ukraine -- All Things Not Good!"
The Indian commerce ministry which leads the trade negotiations between India and the United States did not respond immediately to a comment request.
Trump's announcement dashes any hopes for a limited trading agreement between the United States and Canada, which has been in negotiation since several months.
U.S.-Indian trade negotiators held several rounds of talks to resolve controversial issues, including market access for American dairy and agricultural products.
Indian officials, despite progress in certain areas, refused to open the Indian market to imports such as wheat, corn and rice, or genetically modified soy beans, citing the risks they posed to the livelihoods of millions of Indian farmers.
India's exports of goods to the U.S. are estimated to be around $87 billion by 2024. This includes labour-intensive products like garments, pharmaceuticals. gems and jewelry, and petrochemicals.
The United States has a current trade deficit of $45.7 billion with India.
India has joined a list of countries that will face higher tariffs as a result of Trump's "Liberation Day", a trade policy designed to reshape U.S.-Indian trade relations through greater reciprocity.
The White House warned India previously about the high tariffs it applied to agricultural products -- almost 39%, and rates as high as 45% for vegetable oils and 50% on corn and apples.
The failure comes despite previous commitments made by Trump and Prime Minister Narendra modi to complete the first phase in a trade agreement by autumn 2025, and to expand bilateral trade from $191 billion to $500 billion dollars by 2030.
If India decides to retaliate, U.S. manufacturing and energy exports, such as crude oil, liquefied gas, and coal could also be subject to retaliatory actions.
Indian officials have indicated in the past that they see the U.S. a strategic partner of great importance, especially to counterbalance China. They have stressed the need to maintain policy space in agriculture, data governance and state subsidies. Reporting by Susan Heavey in Washington, Katharine Jackson in New Delhi, Manoj Kumar and Aftab Ahmad in New Delhi, and editing by Doina Schiacu and Mark Heinrich
(source: Reuters)